Expert voices have not let news of United Wholesale Mortgage (UWM)’s recent move go unnoticed. In a piece in which he explores some of the recent dramatics of UWM’s CEO Mat Ishbia, financial analyst Jared Whitley points to recent performance of UWM’s stock as a clue for what might be behind the ultimatum.
As Whitley writes:
Ishbia’s comments come as UWM and Rocket have seen their share prices go in opposite directions. In January, UWM was taken public as part of the largest SPAC ever. After opening at nearly $13 a share, the company has been unable to sustain that value, currently down 33 percent. Conversely, Rocket announced better than expected earnings in the fourth quarter, which led its stock to grow – now about 40 percent over its August IPO price.
Observers argue that if UWM, the #1 wholesale mortgage lender in the country, was continuing to grow its market share, then it wouldn’t need to implement these types of tactics.
It’s an open question as to whether UWM issued its ultimatum in order to lock in brokers into its system – and out of those of the competitors such as Rocket Mortgage and Fairway Independent. Regardless, consumers are the ones losing out because of reduced choice in the mortgage industry.