We have explored expert concerns with UWM’s move in the past.
Now, we are taking a look at some of the numbers that have been reported since UWM’s move. And they raise some interesting questions.
UWM missed their goal of enlisting 80% of brokers into signing their addendum barring brokers from doing business with Rocket Pro TPO and Fairway Independent. As of late March, UWM lost 1,600 brokers since issuing their ultimatum. Before Ishbia issued his ultimatum on March 4, UWM worked with roughly 12,000 broker shops. Though Ishbia initially said the edict would force about 3,000 brokers to make a decision, UWM later said 4,600 broker-owners were affected. Of those 4,600, UWM said about 3,000 accepted the addendum. About 400 declined to sign and 1,200 never responded, which means they are not able to send new loans to the lender.
Most damningly however are numbers that Rocket has reported since the ultimatum was issued. As financial analyst Jared Whitley wrote:
But the proof is in the pudding: Rocket reports 22 of its 25 largest partners rejected UWM’s ultimatum and have chosen to continue working with the company – many of which did more business with UWM before they were forced into this bizarre spot. This has led to an increase of 40 percent in daily registrations at a time when real estate is booming in reaction to Biden’s bear market. Meanwhile, UWM stock is down 10 percent since the beginning of the month, and about 33 percent since January.
If UWM was hoping to juice its numbers from its ultimatum, it’s becoming unclear whether that has happened. In fact, it appears that the ultimatum may have made matters worse for UWM.