United Wholesale Mortgage

United Wholesale Mortgage (NYSE: UWMC) is a national wholesale mortgage lending company headquartered in Pontiac, Michigan.[1] UWM underwrites and provides closing documentation for residential mortgage loans originated by independent mortgage brokers, correspondents, small banks and local credit unions across all 50 states and the District of Columbia.[2]

History

Jeff Ishbia started United Wholesale Mortgage in 1986 as a side project from his career as an attorney, initially calling the company Shore Mortgage before changing the name to United Wholesale Mortgage.[3][4]

In 2002, United Wholesale Mortgage was established as a subsidiary, of United Shore Financial Services.[5] In 2013, Mat Ishbia was named President and CEO.[6]

In 2019, the company purchased a second building across the street in Pontiac, Michigan to connect the two buildings totaling their square footage to over 1.5 million square feet of space.[7] In November of 2020, expanded its Pontiac campus with the purchase of the UWM Sports Complex facility for $23.3 million.[8]

SPAC and public offering

United Wholesale Mortgage went public in January of 2021 through a merger with Gores Holdings IV, and the formation of a special-purpose acquisition company (SPAC).[9][10] At the time of its formation, the SPAC was the largest to ever debut at a valuation near $16 billion.[11]

Since then, shares have fallen, due to a volatile mortgage and housing market, and a planned second offering has been postponed.[12]

Controversy

In March 2021, United Wholesale Mortgage announced that they would no longer work with any broker or bank that also worked with United Wholesale Mortgage’s leading competitors Rocket Mortgage and Fairway Independent Mortgage Group.[13] At the time, Ishbia claimed the decision was due to the practices of those companies, including working directly with Realtors instead of mortgage brokers in securing home loans.[14]

References
  1. "United Wholesale Mortgage LLC". Bloomberg. 2021-11-10.
  2. "UWM HOLDINGS CORPORATION ANNOUNCES OFFERING OF SENIOR NOTES DUE 2029". SEC. 2021-11-11.
  3. "#102 Mat Ishbia". Forbes. 2021-11-25.
  4. "Shore seeks space as Mortgages boom". Crain's Detroit Business. 2012-09-02.
  5. "Pontiac-based United Shore could steal No. 1 ranking from Quicken Loans". Detroit Free Press. 2020-01-17.
  6. "What to know about Mat Ishbia, the billionaire CEO of United Wholesale Mortgage". Detroit Free Press. 2021-02-04.
  7. "Fast-growing United Shore needs more space, and now". Crain's Detroit Business. 2021-01-22.
  8. "United Wholesale Mortgage expanding with $23.3M Ultimate Soccer Arenas purchase". The Oakland Press. 2020-11-18.
  9. "United Wholesale Mortgage Goes Public in Biggest SPAC Deal Ever". The Wall Street Journal. 2021-01-22.
  10. "The Biggest SPAC Deal Ever Was Just Announced. It's With a $16B Wholesale Mortgage Lender". Barron's. 2020-09-23.
  11. "Second-largest U.S. mortgage lender will accept payment in bitcoin". CNBC. 2021-08-19.
  12. "UWM shares recover after secondary offering postponed". Inman. 2021-11-21.
  13. "UWM says it won't do business with brokers working with Rocket, Fairway". Detroit Free Press. 2021-03-05.
  14. "United Wholesale Mortgage says its crosstown war with Quicken Loans is paying off". CNBC. 2021-03-24.
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