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UWM Holdings Corporation, the indirect parent of United Wholesale Mortgage, announced its first-quarter 2021 results, which reported a net income of $860 million, a 42x increase from Q1 2020 when the company reported a net income of $20.3 million. It is worth noting that the COVID-19 pandemic affected companies across the mortgage industry in 2020, with many reporting abnormal results in the first quarter of last year.
UWMC reported originations of $49.1 billion in loan volume, up 16% from Q1 2020 when the company notched $42.4 billion in loan volume. Additionally, the company also saw a total margin gain of 219 bps in Q1 2021, compared to 95 bps in Q1 2020. The company also increased its to $2.78 billion as of March 31, 2021, compared to $681.5 million at March 31, 2020.
"The first quarter of 2021 was not only the best first quarter in our 35-year history, it also marked our first quarter as a public company and solidified our foundation for growth. We believe we now have the capital, liquidity, technology, campus and staffing necessary to further scale our business and grow to become the largest mortgage originator in the country," said Mat Ishbia, chairman and CEO of UWMC. "We welcome the shift to more of a purchase market and the pressure on margins as we believe our business model is built to outperform competitors under those conditions."
The company's board of directors declared a quarterly dividend of $0.10 per share on the outstanding shares of Class A Common Stock, according to the report. The dividend is payable on July 6, 2021 to stockholders of record at the close of business on June 10, 2021. The board of directors also authorized a share repurchase program of up to $300 million over the next 24 months, beginning on May 11, 2021.
Click here to see a full breakdown of UWM's Q1 2021 results.