UWMC - Earnings call transcript Q1 2022 | UWM Holdings Corporation

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Operator

Good morning. My name is David, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the UWM Holdings Corporation First Quarter 2022 Earnings Conference Call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. there'll question-and-answer remarks, speakers’ the be session. a After Instructions] Thank you. [Operator conference. you may Kolo, begin Blake your

Blake Kolo

Good Blake joining This Holdings Investor to morning. is first Corporation’s Relations. Head Officer the Thank of earnings and call. you XXXX for quarter us welcome Kolo, and UWM Chief Business

Before I to would remind conference that this we includes forward-looking start, call statements. like everyone

will the UWM For now and this forward-looking statements, from to differ more information materially over issued call about the CEO and we factors refer turn that Wholesale earnings to to may morning. Chairman that Mortgage. I cause Holdings actual results Ishbia, United release please Mat Corporation of

Mat Ishbia

Thanks Blake. for all you it. I And thank today. joining the call appreciate

providing important any brokers of A to in clients service. to start, market a really want and rates earnings is rise? the everyone the strong purchase business and and we service to I've technology speed I UWM thank are to market. expertise brokers when current to call, business combination winning lender said UWM’s winning congratulate our magnifies mortgage and UWM for how adapting for thrive our the at purchase if broker heavy every health, Before On best-in-class this their and the why commitments continued

is market We winners where the that to are next why have can though facts UWM get The any consumers you from our best for two key. in will we success are and and is the are strategy the we going for the is market now The in the and place to market to broker channel environment. place are work level. And channel best really purchase to today. that easily the drive in this These the at broker environment identify loan. the market loan where brokers simple. propel rest. officers This It's

XXXX, lot while you'll operate how the story. $XX.X XXXX when whole shows production billion the and and excited had what That the beginning environment. And is As our closed out quarter new was which out a most lot be up a the to profitable very for substantially same a have achieved first the in this four see story weren't, were we that did feels lenders year We to rates scale our the went QX XXXX, years. in of in year we and quarter. like about. play lenders massive last figure growth we've almost We then. last back of results demonstrate, to in year

that number than XXXX. More even our trend first year will UWM. is big by XXXX, production – first This And importantly second first we'll our compare largest anyone purchase of quarter volume, of our volume quarter invite is that, XXXX the of you in more history of quarter the when the strength with XXXX the but is to any lender XXXX This $XX.X think business. production beyond XX quarter number is comparison quarter the first as in only I to to to our the year-over-year country, first XX% of down QX comparing quarter we in at of billion here which standard. XXXX. continue do a in proof

We net million That $X.XX of earnings the XX number purchase in continue $XXX.X in America. lender delivered are one across million $XXX.X income one We for quarter the very points. a gain be number lender UWM and share, basis confident which shows represents will per overall that the margin strong board. the America with to of eventually

our a fair $XXX MSR that adjustment value in million $XXX only addition, portfolio. is to In million

is the value MSR without with write-up. business So very MSRs and our strong our

broker talk channel. other couple Now, a optionality, scale, focuses, about let's

mortgage can have. brokers, win. This for First on win is than we've retail this market in scale, brokers our so technology helping better lender What they is provided is what superior.

technologies, a our It's continue from Now That's it's to XX% the but BOLT best grow. the the is a to big increase great fourth one first America. underwriting example. quarter adoption quarter. just of We've going big, platform seen to in

You'll values. see and quality makes board. because drives the but in QX, lowers optionality, soon. – higher about not play More BOLT Also across story coming more only on it QX, out the come also productivity costs underwriters, talk to for MSR our QX overall better

the Our best of country. MSR in the book is one

rates low, and that rates side, are a of MSR but originate When is at game values high we’ll is quarter, I'll strong a well. still business have originate our up, and we'll business reality some much but every go we bit. MSR X.XX%, up so which little originate of go even our because lot business a after book as WAC selling will in when our The X.XX% is book our Our so strong MSRs, up MSR this, on from purchase lot is the values margin. reference

very the and proud regardless we years business market. to of where We’re at. XX win going of in we’re

officers, to UWM more to have in mortgage submitting XX,XXX winning. fact of XXXX. loan loan unique go mention grow. about and going help what very strong UWM. the thing saying Consumers been unique for we’ve join loan realizing It’s has think channel brokers it. officers. loans XXXX years and and This broker are leaving are in retail realizing should to loan to we’ll to about broker right in are that broker us brokers one LOs channel really officers submitted Realtors are UWM. growth been officers we want I Lastly, now. it’s a The they to other the that is continues happening to

unable be to here today. Now Tim CFO Forrester, our is

bit of I from going from questions. things to the about color financial the bit to our and perspective talked a some little before little I’m of a give highlight So some his take about we’ve business

huge that XX% success. our finance a growth So quickly, perspective our talk point Tim and part to a from like of team, as year-over-year out purchase to would and massive from like we’d about is

notice using cash our of lot important income is you to interest make our down business, help the that us but using That’s grew, our to also self-funding for tied a more because success. cash. expense went If we’re

expense important our the very side, expenses. On to continue manage that it’s we

complete at. control and feel this have we’re of where We about we great

higher Our year-over-year. expenses looked

about our A Also about book last And reality, year QX couple to they or which were million a in actually that change XX%. actually were from is higher. when there’s However, affects There’s in XXXX, note. that lower. of numbers servicing they this don’t forget, then reversal things $XX reduced million our also a number. presentation $XX so year

So there’s about $XX.X million costs. higher in servicing

and down. are out that take costs actual You our

great fourth managing feel which is of first costs, a October our if our recognized about in significant our new common went loan versus we the out. Also our a costs, part XXXX, big the quarter you quarter the are assets, limits from of We profits. conforming

A sales, in looked $XX mentioned out lot may normalized see last end of liquidity doesn’t we April the market, now will the $XX as you’ll held we billion roughly much. the of to year. those our lot have million bloated MSR about and there. about on So at comment we Fannie I of billion see P&L $XXX also it. loans It in which $XX profitability, impact a to of pick quarter. because of up earlier, some loans thing PLS in billion assets our people back down around Freddie on and sold But X. fourth Also our been number and normalized brought That MSRs other one assets $XX with billion

once across great important. see, which liquidity it We’ve position is the board. continue a again, out is in done our as we pay consecutive. And strong are is a six important, why quarters to you liquidity Liquidity being However, dividend. is

We continue will pay dividend. to out

the our is continue about our to great very strong you shareholders the saw will in Our it dividend to quarter. dates first as the is release, And We about and out it. that Board with be. dividend it along when pay will and want feels again earnings strong out. once shows that feel we reward We it for

want quickly, questions, of I turn to things. really over highlight a before Now couple I to

is market. us Our balance The strong. sheet scale win any enables to in

it forward. how and going portfolio And watch offensive. to is continue migration the we I we to and will asset forward I’ve said steam, gaining return as going loan continue channel shareholders. best dividend to business. Please book Our business to the us model is allows MSR with a win. our The And said, grow our to the wholesale just production commitment continue to before officer our the on demonstrating to like MSR key sustain is cash the in stay

seeing many For fantastic headquarters points. QX. $XX billion $XX I you sale between for around at It’ll in here XX our And XXXX production is clients another see forward going gain talking how our at Live second We to it. Robbins look things be billion. to UWM to quarter our quarter on to about looking of XX where their basis our be be we’re and margin be UWM of to speak build will here. forward to going business, is out X,XXX I’m Tony here here growth, excited. to going going about on some about working UWM, and

to the let’s questions the some to general. about answer Now business the turn UWM, questions it any or and in over marketplace moderator happy back for

Operator

Doug Suisse. [Operator our from Instructions] take Credit We’ll you. with question Thank first Harter

Your line now open. is

Doug Harter

the It on sale I was expectations. the you quarter. was hoping gain talk above little could Thanks. a Mat, bit for about margin first

quarter? the Just kind that what for of drove

Mat Ishbia

Yes. Thanks, Doug.

talked before talked control last not is the about we about to my in to XX the control market. bottom. XX reactive we’ve As We We that we’re here, market. margins our the call,

good is that’s margins long less were. come perspective not going margins. down market of felt of to And we sensitive a and we’re differentiate where have obviously go so where people below numbers. and A lot about purchase ways rate those We lot to a a from other

be going the I’ve we with for and been every position I’ve so in right try below quarter on feel that our now not call. you and be we that down told And margins strong these earnings consistent to will feel numbers

Doug Harter

you come had second versus in down quarter to previously guess, kind I guess, kind back following-up of quarter see given first the for the – of margins kind just in? of do range that would comment. come they that differently I came you the on what where have

Mat Ishbia

pointed out confident. margins make we sure XX, where as to XX guide feel Once like in where release And the XX our below feel about earning to also going I I be is the to in where not we call. will again, the I are. strong point I

that are pressures us, ability so to not that felt However, that the at the margins of competitive same following pressures competitive below control have make lot everybody already there’s on where a there other else. We’ve it we way our we don’t those time, go and usually factors But they’re number. around.

So therefore, choose our margins we’ll put to spots. again, different once

There’s right? XX. in into lot profitability, However, our in I the really of feel different profitability a XX factors major that’s forward. to not the indicator of our confident going

Doug Harter

All you, right. Mat. Thank

Operator

go we’ll Henry Wedbush. Jr. to Coffey Next, with

lines Your open.

Henry Coffey Jr.

you quarter. you for you’ve putting received much, like one, great others and Good comment issues staffing reducing Number morning. of Couple questions. much another Thank are. many that made so well up the weren’t

What have keep are the is mechanism up lower. profitability originations As trending you without... then operating place to obviously in

Mat Ishbia

Henry. Thanks,

culture you X,XXX to lot guys I here. Live out will our be key see where of a Our is our UWM success. know clients out at you’ll here

asking see all the our here efficiencies. question don’t reality another’s and you’re success. in how the and campus because do can is of technology technology, also we it’s is, You’ll growth people our with the The

be I extremely profitable to quarter. said, like going We’re last

it business, our so with were As that has as run a long so to the the refinance long run for purchase on else way been bloated. market. costs their continue dependent we Everyone we

of And require us technology not to so that. to not did our that. scale did We reduce they the We up do. didn’t because people do had

down And to have to stay so we therefore don’t profitable. scale the people

were highly the move in profitable. and That’s first we fourth is saw to in quarter having as have very profitable reduction successful saw to going we first we would that the believe mentioned be that you I going in not members. any and we to will was who we be what not the it needle team in, continue without and you As obviously are quarter and forward highly the quarter, obviously

Henry Coffey Jr.

in to broker So the from have of channel, your terms own you measuring numbers. migration retail

Can to last over it with. years? for You’re XX,XXX looking into historical working the of How much or track we perspective put basis we mean, I at a you’re has any how some, be something? that as on the unique brokers And looking is one can few grown secondly, data there outsiders? that then on place thoughts us? this that should you watch monthly

Mat Ishbia

is... external The reality know I don’t sources there’s if for any it. great

Henry Coffey Jr.

why That’s was agree. I I asking.

Mat Ishbia

back. my far is, grown don’t you less year. good saying And indicator. of are so this more coming backwards besides market we volume, do officers for what looks and what the it last you and And do I XX,XXX source my year to have broker loan officers. I loan but so data looking a less with as so we’ll more It’s if LO’s a we’ve can data more very show years. I great with think with business give business volume we been The the do to loan we’ve officers channel. That’s in point that’s

how think at up officers down were one XXX, broker how of they maybe actually analysts channel Wells made and how I a loan time. to XXXX, dipped the have they’re of highest the all showed the back even coming back levels Fargo and grown comment in

for and trend see been now the with think and to market I talking conditions. face it years, show to about start you’ll so And we’ve starting it’s that

Henry Coffey Jr.

IMF all I’m ago? can is expansion. year terms that. a your So shows wondering Yes. we you what But that what where the account No, growth or and we are was data in of say understand have two

Mat Ishbia

Yes. for with it he’ll follow Kolo and get get that you can that But Blake number I in information. front and you have I of can don’t me. up you

Henry Coffey Jr.

then give call. I’ll finally, market at terms Yes. you’re And Blake looking benchmarking and share of profitability, volume. obviously a in

I our do what sort your that at or short-term, much Do should coming demonstrated figures are share you ROE? in metrics terms either you bottom business’ can pretty purchase of line the in Not long-term of on? think of that you which under but have dollars ultimate in on margin terms looking you’ve control. thoughts market, all sale gain in or What of ROE? we or on You’re terms strong. really have per earnings the are some earnings eyes keep

Mat Ishbia

for quarter. the the mean, as be where purchase built obviously as based that a last for what years, highly or the in And guess, you We’ll quarter plus, the feel And $X.XX very demonstrated these I other and now. can ready what we you and I confident And think But it’s the the quarter obviously quarter, shows on, out make years two think highly more profitable. where companies trending. very then shows past business the that so doing our we in because of year, we’ve $X.XX I’ve quarter, billion comfortable that what paying you’ll in you Obviously, will quarter And I cycles. has per mean, done to that. years, and will I some. to second dividend, not math we’re I it not a $X first we’re strong million it’s year. with feel are. earn for which really first seems for we’re the think we that’s a quarter have it’s see well the Yes. margins for And be do going told we’re year might that. really that I environment in told profitable And we $XXX all way, like focused see and I I first future you’re that And second well. that see going I be our confident think whole paying

Henry Coffey Jr.

Thank you.

Operator

Thank you.

James Morgan Next, Stanley. to we’ll Faucette go with

open. now is line Your

Sandy Beatty

context know thinking as you throughout just Hi. provided between allocation, the investments of technology balance James. of year. are originations even all within here. This terms for as bit this But capital well internal color How and liquidity, buybacks returns on little I Sandy of obviously particularly you is the about, actually capital contract Beatty a within in

Mat Ishbia

Yes.

plan best to strong already shareholders, where always prices to dividend of reward on the very like that continuing to do we’re really We good about We today. to the cash announced. We what’s continue long-term feel at that. I’ve have pay balance as right the we’ll and We now. So cash. our use stock

our out based dividend there best think one I of investments on the yield. it’s

to and with UWM. partner shareholder for And UWM are so being going a at get people a being rewarded

way all addition a most horizon to forward. our at to on the shareholders, ways different use and going things look In continue to build our clients cash looking company, doing lot the beneficial we that our that at of to for in there’s and we’re reasons our

Sandy Beatty

share And remainder call over can of year? with it. to Got And out you. regards you there quick in just a that it. you things bit, expect us gains? might like talk one little Thank just to just specific to with Got the to the how you’d strength follow-up, Anything to track closed the times, regards that just that purchase. like

Mat Ishbia

don’t pieces And business. think UWM understand. rate being term UWM. how book. centric about to successful companies lot that lot refinance. they book, so purchase talked was are purchase of and how people There’s A a refi I were their people of that was and a that And servicing they their Yes. of a refinanced lot so wasn’t

able market not two nuance And just purchase achievement. on purchases. reach saying, it. it’s consecutive been we’ve as share. the number year consecutive as we why much we two dominate course, borrower, lender, do not of a refinances, transaction nuances more appraisers. purchase we in you There’s Of to just business. easy of realtors will grow to do but have a start focusing be companies a lot your complex for to And a that and of that’s title let’s a we’ll great one the on to be many the cash aspects It’s years. out all refinances, purchase it’s course, a there’s where lender, times, be many third times, This And involving and lot lender hey, a two borrower

first we’ll lot And going other and works you’ll you business. Let’s to of what as the it are that purchase that’s companies trying forward. not see buy do. a see just how in purchase quarter, do That’s leads and

As dominate purchase market. will market, purchase the to continue the brokers brokers dominate

the predominant We mortgage partner for are brokers.

Sandy Beatty

it. you. Got Thank

Mat Ishbia

Thank you.

Operator

Barker Kevin to go Sandler. Piper we’ll Next, with

open. is line Your

Kevin Barker

questions. for morning. my Good taking Thanks

items a core You core you quarterly – went were those you through pretty like them quarter? operating not quarter. as would and what for you that mentioned Could reiterate quickly. expense first several Could expenses this estimate the view

Mat Ishbia

they I Yes, from you to to was they pointing so out core Well, anomalies weren’t that QX. QX expenses. say didn’t I were

looks for up, up. it went actually went substantially. them like didn’t our when They go rattle you. expenses they down quite So I’ll actually off

I One G&A idea. million, an get year. contingency said $XX million you reversal so last from million, $XX.X was reserve in a $XX.X Just but about

were So $XX.X year’s million. last by deflated

So another that’s change the one thing loan I mentioned. presentation on million There’s $XX production in income.

So that million. servicing another the bigger about book $XXX $XX.X $XXX is And the $XX was people from one up don’t realize was over XX% billion to million our billion.

and those actually into. so just that the don’t that all that. I out we’re efficient There’s expenses the over our they’re others our to control margins cost we’ll overall with to are But couple to was win opportunity a our very continue going we’re at need grow. mention and And just very to this cost this And where well. point didn’t with we’re continue we aligned at – get because structure for expenses with I And even with market, to to with as excited in is. continue thing forward us

Kevin Barker

of XX%. the to ratios, nearly your I And to equity Okay. then, back like some is X.Xx below capital common X, mean, equity tangible debt now ratio going questions,

evaluations to the structural there’s or make, across it of very standpoint. I you it’s have capitalized And opportunity lot there a just from other space. base some to given take the seem do a seems capital whether you acquisition changes mean, advantage see that maybe you’ve opportunity of strategic So like today? out any over

Mat Ishbia

definitely size, structure. great our about advantage opportunities, feel cash we take really and of at our base, We capital look our And our scale that. our Yes. position,

opportunities that. and So lot market. in builders the there’s We’ve will be of continue we been a organic to

having right we at other that’s our now as and and the scale. things However, strength always look cash business in benefits of much one of such of so

think a feel as continue you’ll We right do and are at to so. confident business we partner. a I of good continue we’ll lot looking now, where about things so us And feel our in really and to is

Kevin Barker

much. Okay. Thank you very

Operator

go Next, Fargo. Michael with Kaye to we’ll Wells

Your line open. is

Michael Kaye

the you Good morning. QX the pricing right. understanding about to to significantly wanted a in price that then more brokers beat May. and matching what strategy your market? All going margin. chat improved much Is these My future program on compete after April this behind I pricing more margins and the How of impacting that’s implemented adjustments? in just was gain purchase and sale is

Mat Ishbia

Yes.

the well. opportunities. question. as incentives very We types say first for but in often won’t had I So month, we the of every one quarter different thanks do and

come the on guidance of guidance the competitors, is the while helping continue types success telling channel. retail in is about some of in good We that helping my retail feel impact channel really given. win. brokers things over and things good officers broker broker in So, helping of our really about more brokers feel those they convert loan to these putting did right win, have to all the game now none We I’ve will and That’s pressure volume. the

they then more and will come. thrive then So

we So shows. of broker the And it’s the to the incentives lot build structures very, of a these concepts out that and come as working with. very with data well we pie and channel continue

Michael Kaye

how alone? plan But employees get low do you time, layoffs. you’ve employees been vocal, do example, much have layoffs, how with of year go no end Okay. over attrition like just no just benefit today? I for how very And it could And you know attrition by many from

Mat Ishbia

hiring still people. we’re Well,

than different to however, we’re guys we other it. and gals companies, say So these want

and So to time. we company join we’re great our people hiring look all the for

happen. But course, And move drive you, down. many costs of some going people not town, general, you team attrition effect in that’s our some so of have when people so to leave, always out things members, will

are costs great in position. a Our

excellent our about Our and good profitability really is business. we feel

count. right a positions. We the where part a hiring really really about our good about of team not member We at company. feel good thought that’s lot feel now in here process we are of So a from

open of lots positions. have We

And we not with continue of level. people the our believe investment, there to how were other continuing we’re because going we’re got of and an win and to to We’re how next we’ll anymore, companies get part business. the long-term That’s to we hiring that’s people in here it. some our maybe benefit as that win

Michael Kaye

very Okay. you Thank much.

Operator

Thank you.

to DeLaney Next, Steve Securities. we’ll with JMP go

Your now line is open.

Steve DeLaney

quarter. lot talk happening Thanks. organic Could about remind about flow wholesale, to could a you UWM to you strong help has kind the along? clearly process of us, from you place move of Mat, what us to infrastructure but congrats regional just in on producers seems retail that the be remind it around the country that

Mat Ishbia

Steve. Yes. for for Thanks question. it, the the support. Thanks appreciate I

So their process to shop. broker own don't helping starting in of of Smith about we people leaves broker brokers We have over a XYZ their reports how loan convert loan help capture throughout build necessarily retail ABC not the XYZ a leave company when But broker, team whole own joins the officers. is of start lender, shop. talk the and many many Johnny loan out show, and officers the lot these officers audit, retail country, just

better processes than retail. to snowball broker a just better have continuing And so offer be at see it's quarter from infrastructure I in a It's they technology better in And and momentum the loan quarter, substantially. for always can shop. picking at make going partnerships America the They place, mortgage throughout huge a and place help officer this pickup thing the fact. like reality. to fourth We rates we a up teams and place, it's saw have a in been in first That's have downhill. better

that's And realtors there the so happening. to loan officers those consumers for and to go follow

the I is that up think as book, better XX these And and retail getting so rates so of a lot down times shop. leave I picking loan better refinancing and on bunch their market the how last a servicing out around When from officers XX said a not a I fast are the those a busy they making loans than leads and data speed start closing why more to and happens. volume technology the there to and month, the have. are of with a offering they're little to XX is of just goes it's money bit it's pick of showing matter year, up hard say, because think And it brokers look is when I

And so have they start those and conversations. to migrate

we're so many having So conversations.

so join and these loan UWM or have We help a to those help built in right throwing officers broker market. shots shop now, facilitate many start their teams conversations

Steve DeLaney

current, broker the currently? the what's headcount, Mat, relationship

Mat Ishbia

The broker you're relationship headcount, not I'm asking. what familiar with

You're talking doing that about teams this. are the

Steve DeLaney

this that the you No, that how brokers assume UWM, referring something mean, many track at keep I of number to of and you that's signed up I track have of migration you're to.

Mat Ishbia

think can loan The And year, on of number, how a the important send don't have. then my officers but loan which are XX,XXX XX,XXX is don't is loan I using you Blake now, is said really XX,XXX have officers earlier, data is factor, than last more I focus that many And us. on XX,XXX, I was but many which pops right this shops. most get there the head. loan the will have loan the front track me I also how year, more exact depending XX,XXX, broker that that how to what a are officers we but many us the closely more using officers. in us I it is UWM of I information, sent the loan that brokers key number focus

Steve DeLaney

Okay. Thank you.

Operator

Thank you.

Vandervliet go UBS. we'll Brock to Next, with

line is open. Your

Brock Vandervliet

Thank morning. you. Good

out you of in any expense were or Were area? items those called the solid salary benefit that those Mat, special clarify, to line number? was in the Just that a XXX,

Mat Ishbia

number, solid think I XXX. the No, a that's

Brock Vandervliet

That where you're for not it's in QX, volume given another, out guiding don't you're but – aggressively. cyclical material decel just a surprisingly I taking not business. more is in sense. why costs Okay. makes rates understand This more I decline, mortgage are.

Mat Ishbia

to the here. I I the and see feel that's continue just here And we doing going and you'll the is, why about have CEO. $XXX made reality our quarter sit I'm pretty sit why million we're in show. run profitability guess, what there That's I That's Yes. follow us. the forward. you good you to so why I

And it. good I feel about so really

a members, $X our team years. say million I high-five over would XXXX, think them, I bit. perspective, July a very great extra out a Great in about shortsighted, a do perspective, feel in two and million really the will $XX down as put go could a rates a it build there of job month? let's I don't Well, member feel everybody, about you $XXX members $XX shareholders understand. saved we've all good happens think there's I culture little quarter, I next million that make it. good of million culture of And team people And that if just save think things some lot job, my I from the What our month. an built. a a team keep year, that $XXX I supporting I million

don't $XXX why my $XXX run over million keep XXXX. business. last saved competitors winning. in didn't how I the sitting the me, we're made why I million we That's And losing two And of years. the money. first July quarter. I $XXX you in And here you're That's realize So I are that's but million high-fiving – make making

Brock Vandervliet

six about you from though. the mean, gone $X months, market's and don't – MSR $X not your furloughing subtle they're future just competitors I comfortable your they're results. I maybe fair isn't laying feel I mean, to this people. just or Mat, like I in understand. value But trillion mark. $X.X – I trillion trillion don't off, even the are,

Mat Ishbia

I All sit why you right, that's there. here. And sit

$XXX the million is that's was $XXX So markup, million fair not of it. million value our reality of $XXX

extremely is business our understand profitable. So

quarter. told the to be extremely it's I guys again in As second quarter, profitable last you going

the So confident and the this And job. time I years. companies XXXX, seen was earlier day well. it company, doing isn't I we're a did, show I've once to before. the run money. on my have pretty happened. doing built I you'll in and didn't I've This over Most We the sit here great make job, the last again, this here XX referenced I be been that we're first like call

with that. think understand that I agree you'd and

Brock Vandervliet

questions. for All the right. Thanks

Operator

Sandler. Piper to move We'll Barker Kevin with

Kevin Barker

an the the of can operating If $X.XX up. to $XXX drivers that like to And the versus share, mean, out earnings, slightly follow to million roughly of level? below your about $X.XX continue main dividend continuing income marks $XX the I besides do per you excluding $XXX, around the fair at per pretax in take share value the today. the wanted getting is where fair just current million income maintain value I margins are what the feel to equal $X.XX. then of MSR, generate which change is you dividend Mat, operating of Hey, or like

Mat Ishbia

Yes.

again, value So $XXX million. is fair once the change

We're You're pay won't at money. I'll feel dividend. will I that correctly. to extremely confident, more generate that always to say We it very going we not very, than looking confident. say confident the

understand So point. this dividend that's And business in the it's because don't general, we'll low pay our just our people why whether once stock again. people that price irrational that don't at question, is our it's fine that business understand so

the earnings. dividend. We'll money. a about to good our we of continue feel We lot really about feel make really So good

about again, about money You'll lot you, made and And part you're every we the and be really you'll get call being quarter and I'll money. be me on shareholder, if to show a bunch it good you'll a able you'll feel of of ask a quarter it. of next

we're very going continue to that. very profitably, successfully, going business so and We about the that it's And excited way. run

Kevin Barker

maybe would bit the interest amortization the will income your statement, production higher to and primarily If interest come a in we it then you assume little income guidance will on rates? a due is see just or over up expenses about something make lot, maybe we be just And other lower production income up about decline income $XXX expense, Okay. servicing the declining, where million. everything implies same

Mat Ishbia

of once sell lot down you to. our Always lot Forrester our better to to cost of we think see income, do where realize always about is of today. country cost everything the I originate. our else but to because to warehouse originate than you'll a again. excess technology because these also really the through. it, We've We continue the at have sources have at profitable, And That's And same said, And There's come not else where there's overall in talked that highly is time, puzzle drop pieces is, realize. go Everyone are here we levels. margins. investments. going the we to spots interest to don't has obviously see profitable people key position our everyone the is interest expense. is we're in you the can to to Tim where There's income, with We'll thing that that see cash. probably to a don't revenue there's

We're the our fair been as And is to have be markups we money book quarter. not over value too, operationally to every continuing strong. we're on dependent quarter, profitable. but see so We make second there to you'll profitable be be more servicing going

Kevin Barker

have you And what's potentially then one, bringing in-house? like considered timing servicing And the one on then so, something if like Yes. last that?

Mat Ishbia

us a We've in-house, that time servicing Yes, time, but a to lot we and same could opportunities grow. looked a dollars our no, at million good that invest it's question. it bringing at there's technology have places couple save the other

And that talk And our that will about are a so we discussion there's quite in-house. team helping we of me growth things generate about it broker officers often a with our balance other that but out the there it's out there risk we channel, actually servicing have income think for definitely bringing win. generate along lot that and loan

forward. want so attention where going balance we focus to of it's our a And just do

Kevin Barker

Thank you, Mat.

Mat Ishbia

you. Thank

Operator

Henry to go we'll Wedbush. with Next, Jr. Coffey

Henry Coffey Jr.

Hey, morning again. Thank you. good

Can give number. mark out to value me that the fast gave you You I write didn't fair again? enough.

Mat Ishbia

said XXX. I about

said it's what I think million think earlier, I XXX it's I exactly. I think actually exact, if XXX, XXX but but is I'm

Henry Coffey Jr.

right everybody. stuff alphabet on and wrong, shares the but D A defer discussion couple it you on to and you got And right, is dividend mechanisms the pay are dividend that, shares wanted gives the There interesting how then dividend forgive the question define important to I of D could terminology switching subtle you and got, more in And the the is, even I'm and on the on regular, lot difference that have dividend that around declared have shares a the – got confidence could the you if flexibility. shows and interesting there how other is of A there's of a you shares, if a then a you the thought people it a number? to between because this dividend me what so and is – you've if the

Mat Ishbia

Yes.

correct dividend and more out, said and I'm I'm continue I've you'll to don't say every after dividend and and CEO the say pay it. The telling quite you're own to quarter that, the of the comments. bit So and after I everything and know paid that we I always I your how eventually to you you quarter a than confidence dividend chairman going quarter. give that in gets paid comes feel through people a

at we're the And so are to these people people can – have confidence, levels, to going but pay dividend. continue

We continue a to lot money. make of

that about – be year the paid strong even even not and we beyond I even cash even the dividend Like we great my honest. things it, how perspective, don't can as this even than stronger not or doesn't to got concept to a board business. crosses mind a or my quarter those a we my Obviously, from and cut are not at with just change the to channel even might the you concept discuss We crossing I being grow the I partners see, where it and across mind the future cash cross mind. about the and the the of that. is because how as board, and not talk board first grow were competitors we on end everything, it's meet But talk dividend strategize in this my

Henry Coffey Jr.

while? forward, going you like a From need – origination grow a to what just point you need forward, lot it and it's profitable you here. Is what hold it of view, for? capital of is the there's momentum do capital When capital for? it of Is so, the you that the a obviously – sort – need think MSRs what do business for if business it what about business quote looks you keeping the business as

Mat Ishbia

Yes.

we that make have the we opportunities. to do to key So how cash is sure cash king, care use and take is flexibility, of

up could technology we market that come there's opportunities So in heavily the invest opportunities perspective. from that a there's can

pay our I like cash time, in to continue but less, the to is which with continue cash having to shareholders, So same we'll at dividend and so. share I our the like I more why do

have for we a different strong out of sure there. make things We're because let's lot – cash. at look opportunities, all there's we So

or there We I we of earlier the things that think me good and someone about struggling can that. feel a other how the in. about asked really position out companies having question lot and other we're pounce cash strong

to we'll cash so dividend. be lot And going We'll of pay a on balance to to continue have Everyone's happy. a sheet. continue

Henry Coffey Jr.

Great. Thank you.

Mat Ishbia

Thank you.

Operator

Bose George Next, we'll KBW. to go with

Your line is open.

Bose George

I in sale guys. guys up XQ quarter? follow the March? wanted on if gain to question. margin what Just morning. Hey trend sale curious Did Good on to gain during closer saw guide down you the Actually is the on the

Mat Ishbia

it No, still about it's in good I trend it. quarter, about and down through good felt feel the we

good to parts and will confident a you'll feel sure want lot about else we lot XX the everything that that as understanding quarter of you range continue And to things true come never quarter there's miss need a really that about about we and good to forward. everyone that. that make to first I and we'll see where numbers just tell really numbers We that feel feel going don't We XX to so numbers. moving the has do good cut margins of we second these you feel

Bose George

in the the you then the to value wanted you $XXX.XX have And of go guys the And MSR, back MSR mentioned fair million. actually XXX Thanks. release, to mark. a just the change million in great. mark, as Okay,

I Is DK because was I XXX thought well? that the XXX, mark? as MSR that include the million does MSR this the thought So

Mat Ishbia

is XXX the Yes. number.

So the things. XXX different includes a of lot

XXX that what is in referencing change the valuation. you're think the I

other XXX may marked of there be. in lot round MSRs. And up million million $XXX a ours we – our obviously up it whatever was companies XXX, out their I'm XXX giving marking of numbers line, So of but ours are

Bose George

Okay, great. Thanks.

Mat Ishbia

will and available thoughts everyone's follow I appreciate other and any questions. for our Kolo for the Blake you Thank ups. be team

back over I questions And I'll at think to was that all the the moderator. queue. it turn

Operator

or And That turn wraps to additional Mat remarks. like portion. Ishbia back any I'd the call Q&A for to over up closing the

Mat Ishbia

we next call. guys in guys the the talking for earnings to a day. the Thank time great appreciate you today, Have forward look and you support to

Operator

concludes conference This call. today's

You now disconnect. may

UWM (UWMC) 10 May 222022 Q1 Earnings call transcript