A recent demand from the CEO of the country’s largest wholesale mortgage lender could have significant consequences for Americans looking to buy or refinance their home by reducing the number of options for consumers shopping in the mortgage market.
In a recent Facebook Live video, United Whole Mortgage (UWM) CEO Mat Ishbia made a stunning announcement: any mortgage broker who works with Rocket Loans or Fairway Independent – two of the company’s top competitors – will no longer be able to do business with UWM. In Ishbia’s words, “We made the decision that if you want to work with them, we are not going to help you guys. Simple.”
So what does this mean for American consumers generally and homebuyers more specifically? That is also simple: they will lose out on choice.
Mortgage brokerages exist to find the best interest rates for existing and prospective homebuyers; they seek out financing options to present to consumers. But UWM’s move would ban brokers from working with two of the largest lenders in the mortgage industry, in turn limiting the number of potential financing options available to their clients – consumers.
Make no mistake: blocking competition in the mortgage industry will harm consumers. That is why CASE is launching Save Broker Choice, a new project to shine a spotlight on this issue and highlight the importance of consumer choice when it comes to selecting a mortgage lender. To learn more about Save Broker Choice, visit www.SaveBrokerChoice.com.