While announcing its return to the jumbo market, United Wholesale Mortgage issued an ultimatum to brokerages and brokers that do business with Rocket Mortgage and Fairway Independent Mortgage Corporation. UWM president and CEO, Mat Ishbia, revealed that the company will be issuing an addendum to its partners, stating that they can not do business with the two aforementioned companies, during the company's recent State of the Industry Facebook Live.
"Independent mortgage brokers are leading a seismic shift in the mortgage industry and this does not align with the business model of some retail lenders," Ishbia said. "That’s why they are attempting to circumvent the mortgage broker in the lending process. As the #1 advocate for independent mortgage brokers, protecting the wholesale channel is part of UWM’s responsibility, which is why we’re asking our partners to go all-in with lenders who support them and their growth."
According to a press release from UWM, the move was made in response to "Rocket Mortgage and Fairway Independent Wholesale participating in actions including soliciting loan officers away from brokers and working directly with real estate agents to cut brokers out of the entire process." After March 15, continuing to do doing business with UWM means these brokers can no longer do business with these two lenders.
"If you work and send loans and send loans to Fairway Independent or Rocket Mortgage, which by the way is about 25% of the brokerage channel, if you work with them, can't work with UWM," said Ishbia during the Facebook Live. "I can't stop you but I'm not going to help you, help the people that are hurting the broker channel. We don't need to fund Fairway Independent or Rocket Mortgage to try to put brokers out of business."
Meanwhile, the company has relaunched its Prime Jumbo product that has been simplified to help streamline the jumbo application process, with fewer overlays now that the appendix Q is gone. The new product includes LTVs up to 89.99%. The product will go live on March 17.
