UWM Holdings Corporation, the publicly traded indirect parent of United Wholesale Mortgage (UWM), today announced its results for the second quarter ended June 30, 2024, reporting a net income of $76.3 million, inclusive of a $115.3 million decline in fair value of MSRs, net, and diluted earnings per share of $0.03.
Net income dropped from Q1 2024's $180.5 million. Year over year, UWM experienced a larger drop compared to Q2 2023's $228.8 million in net income.
Total loan origination volume for the second quarter of 2024 was $33.6 billion. That's compared to $27.6 billion in Q1 2024 and $31.8 billion during the same time last year.
Of the $33.6 billion figure, $27.2 billion was purchase volume, which is up from Q1 2024's reported $22.1 billion. Year over year, UWM's purchase volume dropped slightly from $28 billion reported in Q2 2023.
"The second quarter was a great quarter, with over $27 billion in purchase. Production is up 6% YOY," said UWM CEO and Chairman Mat Ishbia in UWM's August 6 earnings call. "[This has been] the highest quarterly production since Q1 2022."
In the company's official press release, Ishbia commented, "The second quarter was another strong quarter, by all measures, for UWM and the wholesale channel. We collectively continue to dominate the current purchase market while investing and preparing for lower rates ahead. Our momentum is building, with margins and production both up year over year, and our focus remains on our best-in-class people, process, and technology. UWM and the mortgage broker community are in a position of strength. With wholesale channel market share at a 15-year high, we are in a prime position to capitalize and grow when rates inevitably drop. UWM has never been as prepared for the upcoming opportunity as we are now."
UWM saw a total gain margin of 106 bps in the second quarter compared to 108 bps in Q1 2024 and 88 bps year-over-year. The company also saw adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $133.1 million in Q2 2024 compared to $101.5 million in Q1 2024 and $125.4 million in Q2 2023.
Total equity saw a balance of $2.3 billion at June 30, 2024, compared to $2.5 billion at March 31, 2024, and $2.9 billion at June 30, 2023. UWM says it ended Q2 2024 with approximately $2.7 billion of available liquidity, including $680.2 million of cash, and available borrowing capacity under secured and unsecured lines of credit.
UWM's second quarter business and product highlights included its launch of ChatUWM, an AI-powered smart search engine designed for independent mortgage brokers, and the launch of TRAC+.
The Detroit-based company anticipates third-quarter production to be in the $31 to $38 billion range, with a gain margin from 85 to 110 basis points.
"We're ready for when rates will drop. In my 21 years in mortgage, I’ve never felt more prepared for UWM’s future," Ishbia said during the company's earnings call. "UWM and the broker community are stronger heading into the refi market than we were in 2020."
