To generate buzz for his upcoming independent public offering, United Wholesale Mortgage (UWM) offers a special deal on conventional mortgages to select borrowers for the next two months.
“We will be celebrating this exciting time by starting 2021 with 61 basis points for the next 61 days across all of our conventional W2 borrowers,” UWM CEO Mat Ishbia said in a video sent to brokers on Wednesday. .
The agreement on conventional loans, which entered into force on Wednesday, applies to purchases and refinancing, as well as to FHA streamlines and Virginia IRRRLS.
“Offering 61 basis points for 61 days is a game changer for mortgage brokers and their borrowers,” Ishbia said. “This incentive will create more business for brokers and further prove that working with a mortgage broker is a faster, easier and cheaper option.”
In the video sent to brokers, Ishbia said the promotion is not all about low rates.
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“It’s not just a question of price – our price is going to be great,” he said. “It’s all about service, fast closing of loans, seducing real estate agents, seducing consumers, dominance, differentiation. Our competitors will follow us, I’m sure. I’m sure they will improve the prices and even the brokers that don’t use UWM will get a better price because everyone has to hunt UWM. “
UWM, the country’s largest wholesale lender and the country’s second-largest principal behind Rocket companies, will makes its public debut on the New York Stock Exchange January 22 following its merger with a special acquisition company headed by Alec Gores.
The combined company is currently trading under the symbol GHIV, but will switch to UWMC in 16 days. UWM is targeting a valuation of $ 16.1 billion with the IPO, which will see the Ishbia family retain a 93% stake in the company.
As was the case with many lenders, the Pontiac, Mich.-Based company had a record year in 2020. It generated $ 128 billion in mortgages in the first three quarters and recorded profits and record margins. Ishbia said he expects business to cool down a bit in 2021, but still expects volumes to be high.
In the run until the IPO, Ishbia said that in the past he has chosen to prioritize technology over retaining maintenance rights. But with the entry into the public markets – and now full of cash – UWM plans to store these MSRs. In the third quarter, UWM increased the MSR from $ 924 million to $ 1.41 billion. It also increased its cash position to $ 756 million, from $ 570 million in the previous quarter, and increased equity from $ 556 million to $ 2 billion.
UWM has launched a number of very low rate mortgage products since the start of the pandemic and plans to launch a jumbo product in the first quarter of 2021.