The wholesale channel has seen more growth in 2023 than it has since 2009, according to data from Inside Mortgage Finance.
UWM’s Chief Strategy Officer Alex Elezaj said he's not surprised.
The channel was hovering around 24.3% in Q4 2023, up from 22.6% in Q3 2023.
Elezaj said that consumer confidence is being restored in independent mortgage brokers.
"Consumers are doing their shopping and making sure they're getting the most bang for their buck," Elezaj said.
He said independent brokers shop around lenders, getting borrowers better deals. He said it's about $9,400 cheaper to use an independent broker than a retail broker.
He said that's why nearly 20,000 retail loan originators left the channel and moved to wholesale. At the same time, banks are continuing to pull out of mortgage.
As the mortgage industry continues to evolve, Elezaj said UWM remains at the forefront of innovation, leveraging its expertise and resources to meet the changing needs of consumers and loan officers alike. The company's steadfast focus on the wholesale channel reflects its confidence in the future trajectory of the mortgage market and its commitment to delivering value to its stakeholders.
Elezaj said they are willing to gobble up market share as banks get out of mortgage.
A number of wholesale companies and divisions have recently left the space, including Fairway Independent Mortgage Corporation. There's also a number of retail companies doing very well like Guild, which continues to grow.
The retail channel still dominates with about 75% of the market, but Elezaj said this new data shows that's changing.
