Earnings call transcript Q2 2023

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Operator

Good morning. My name is Lisa, and I'll be your conference operator today. At this time, I would like to welcome everyone to the UWM Holdings Corporation Second Quarter 2023 Earnings Call. All lines have been placed on mute to prevent ay background noise. After the speakers’ remarks there will be a question-and-answer session. Instructions] [Operator

may you your begin Kolo, conference. Blake

Blake Kolo

Holdings This Head of morning. and to XXXX is for Blake and Officer welcome UWM Quarter Second Business Chief the Earnings Investor us Call. Kolo, joining Good Corporation Relations. you Thank

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

statements, that issued the to earnings that we For factors actual to refer may more information differ please results morning. this cause about materially from forward-looking release

and over I UWM CEO will Chairman the Mat Wholesale of call Corporation to now United and Holdings Ishbia, turn Mortgage.

Mat Ishbia

to Thanks, I'd We're by Well, UWM, UWM. joining members, all Blake. the for here seeing about our and numbers the we're excited I strong, the really that like proud The it. market, to the really start soon. appreciate of thanking had team our proud of proud talk are data, really everyone of at call. clients we're amazing and going quarter more at very we've

into to years, difficult UWM mortgage can and the the before It's of succeed demonstrated very that's a that, industry, we've because But XX market for foundation months. been built last I all the the our strength one get start of market and overarching in environments. want has I market. themes the years But with in over we

succeed every can have I UWM since, call quarterly this and all when said, again quarter markets. public, that As dating evidenced went back roadshow to of initial we is once these my in

the laying off. people companies are and exiting While losing market, shrinking money, other

the We are exact opposite.

profitable. are We

hiring. We are

to continue and investing in technology, grow. to are planning We are we

from is are to a really volume a the business. and perspective maybe it grow it's three, usually mini six your months make come boom, margin soon. We refi know [refi] (ph) opportunities money long really sustained to the one nine months, a first and in The or going boom whether

and been is and We name the we're to win of are game, we've now. that for continue why the going going winning prepared that to forward. Scale is

This market the Our winning. said, going to ultimate business in that's why when, big model know are I market, are down but succeeds I don't and markets. we still for prepared we up and and at I different can't the as wait come. It's we the is come. to everyone the down UWM than markets else. are

than get business year here billion in production, purchase. meeting Let's did We of and another altogether, $XX.X all-time guidance. did volume, all-time We business on billion billion. numbers our our purchase We for quarter's else into the purchase are just record record quarterly $XX delivered anybody first. UWM. new for volume, an purchase set $XX more That's overall pace at we

within the gain and significantly in better we and very margin was stronger. than We made which $XXX.X points, when guidance. market more XX Our income, profitable net quarter second is basis of year last made the million well was

that being the net includes With amount up, it. moving MSR small income a value of said, of of some

all. it my really at or like moving Just last quarter, and value spoke doesn't our MSR play up into business down, mind I

only quarter, made $XXX like MSR just us you adjustment, people million. take about last it we maybe it, When So matter. really for doesn't hit out

a no which the way hell look running it, business, matter profitable, this and a We you a environment. at are successful given is quarter of

few our to Andrew, gain Before other to continues channel The I to momentum. CFO, a over it turning want broker highlights. touch on

joins channel joining get growth the and to the not broker potentially the We a come. like years see the broker loan the a we've share in continue officers in addition years factor numbers. channel my year mind. just it's we for get It's when actually onetime. officer In multiplier loans to These loans things in channel, loan big hand-in-hand big, also we go in past to seen

broker channel. it's to make big retail loan deal more half again, the we best a said they during the say track thousands a loan, not the it In to more with broker best I'll consumer broker place also second officers the where them get before, channel is it jump So channel join and leaving only retail from a channel to work. it's the the wholesale. when than I place the officer loan our for of for

which the is as achieve about how dream which going. quarter, feel been well. we lower-income out borrowers that X% down second products really enhanced We our the home really We're very we has In ownership, rolled a excited helping is important. program,

we significantly helping there volume and them programs On of there's well. think spectrum, the the big other We jumbo product more more and the clarifying coming help consumers brokers succeed. and to a enhanced our in jumbo opportunity as soon side to drive by

on what and win We us but end sizes focused help already the win loans brokers, in as and really out to conventional loan UWM well the the products round we're government and end higher helping does. lower

is two broker Portal, scale. one, brokers real really energy event We the had preparing UWM LIVE! X,XXX the announced for efficiency record big attending. was which with other around also event in brokers second is and quarter, technology and one agents enhancements, about PA+, A the brokerage We estate and us of lot helps which for a UWM channel. the which excitement for and

a and business. a go UWM scale different. get is for prepared our boom refi Brokers lot they before, way a their laying it them process when are PA+ mini no said or competitors helping next off, to I are the by lot big people aren't help comes. As people them and boom of can of prepared facilitate so new and is out loans,

We're those broker be or of they'll excited ready and of a PA+. has ago. their we double UWMs really business, because that months UWMPortal, to out if couple and a about triple So just rolled

we're These the UWM. and never refi about commitment are in Those things we we products whenever broker now excited has comes, proof rewards investing to growing those or our hit that now of boom that the things. relax are will might that processes year expenses and things UWM we're both the see next the channel new at

more it to for Andrew our details turn few a I'm going financials. over to Now on

Andrew Hubacker

The Thanks, QX and as and performance QX income of quarter volume from improved value XXXX. XX% net to considering fair year our in positive over $XX.X compared before than production XXXX. QX was prior Year-to-date, a the momentum and changes operational turned QX to carried to higher over of year-to-date MSRs the Matt. in our both million increased

competitive targeted points last had a and margin our of Game significant we increase gain basis when this is This in XX the to strategy this transitioned of pricing we Year-to-date XXXX we continue to On broad-based have is right what a in of guide initiative. market. also to the half as more more from from middle solid pricing

Overall, Furthermore, declined expenses, financial being expenses year-to-date. a market approximately from member X% other current total in in performance delivered QX QX, despite mortgage and very standpoint, to continued mode interest solid expenses team conditions. in excluding nonoperational growth we moderate servicing, overall considering

We sizable quarterly that opportunistically have operating warrant cash and sell in market flow our a discussed the MSR MSRs provides needs while high-quality conditions as XXXX to maintaining capital a portfolio of business, and to recurring plans previously liquidity stream. support the

plans while portfolio total in these at maintaining to end $XXX billion by of the approximately servicing of of QX a continued the execute We completing on sales MSRs, quarter.

quarter excess from total completed subsequent year-to-date a on of sales billion. $X.X resulting with billion of and approximately MSR end, were UPB $XX.X to total bulk Additional in proceeds nearly sales loans

quarter. speed $X.X have mentioned end to as We also from our our strong the technology, and a our total positions financial approximately future broker of partners of on We with us approximately of Matt efforts sheet equity billion opportunities. capitalize in our the total the accessible growing significant of share. maintained that our balance of strong billion believe and liquidity channel both positioning very well current and competitive and strength $X.X market superior all to provide investments our service current wholesale to market

Okay. back turn for over to Chairman things our Mat and some CEO, Ishbia I remarks. now closing will

Mat Ishbia

quick than Thanks, Like did anyone this business have I we we quarter. to performed past overall how else earlier, did said close more in a with I'm Andrew. pleased few points. business purchase in want market. I this with

rate use brokers We we when are things to foundation don't the mortgage as advantage of continue this and those our drop purchaser and in a environment. provides This business track our for rates are dominate ever, this winning. business. And grow. and even to excuses, and inventory use them great grow on do We do biggest us refis

mind, market and products for members by tech our and better broker to the hiring invest backdrop With in to the and clear we'll strategy continue in team continue means invest our in channel team in established to brokers, it (ph) invest [prepared] that serve our ahead. formula in opportunity mortgage We've invest our future we'll new not long-term changing. for a members, the privilege success is in

for we in dividend. consumers purchase that a breaking and rapidly mortgage also been industry XX production I'm announced report very I a XXXX this said, to production And records are is as the down, has have quarter share, technology. to overall faced rising and in we rates. year a the growing Yet backdrop, have products are spreads quarterly against proud $X.XX continue wide, invest row,

And is at future bright I'm can UWM. the you extremely tell Overall, excited.

production range billion For $XX to be XXX between of our the to third expect margins XX $XX quarter, and in points. the we and billion basis

back things for I'm over turn operator going to the to Q&A.

Operator

with Your Jefferies. Instructions] [Operator from the first comes Joseph you. of Kyle line Thank question

Your open. is line

Kyle Joseph

morning, Mat, and my Andrew question. good Hey, taking for Thanks Blake.

want -- quarter-on-quarter. up up us working hire But I folks talk able And know those Obviously, that to you more Just you you're just Do any are can do really some your not -- how substantially that? layoffs. guys you or drive capacity. sense volumes are to quarter-on-quarter? is give XX% people to about volume were overtime a undertaken origination did

Mat Ishbia

Thanks, for it closely. Kyle. got our pretty people I us is we've strategy, a times. it's I Appreciate it's about Again, plan. multiple answer like everything Yes, so quarter-over-quarter technology. know talked don't you the a I said realize follow the question.

so handle technology going go so dominate there different it and And the purchase the so an especially was the of volume, and can right both we to we because have have we market opportunity and there opportunity brokers. investments is now, continue when and the opportunity the to to volume made we made the investments be get in

couple that's market first when when to going it's for turns, still are Their get or we and that like we said, And doesn't With takes people -- games month, is make months because last six hiring a playing also of two, be. that the a preparing -- about month we're laying these hiring months someone did in ready. talk companies hundred other we word among when the any where the impact or are know did XXX people Right to your scale. really that capacity XXX operational letting people These now we're why it off being don't that I and money. you six go.

prepared. first six when The market are share take first you and things months your we

have And go impact and -- the year when billion in rates and quarter might third third country, happen. handle it and -- and able But things hiring be zero or we'll in billion what and we next $XX of from doing $XX the when capacity to drop than the margins, bigger quarter really first we that quarter, or so things the the might at we've $XX and we billion, more when prepared what second will we that did or are quarter do done to that's in the for anywhere quarter. we we in [indiscernible] second on

prepared. we're win. of that's word winning So why and now, we'll for we're why us, that's is to and day the continue Scale the

Kyle Joseph

follow-up Got one sense. just then that me. it. for makes Yes, And

Is that big a You touched jumbo that going remarks. opportunity And banks? how for on you of what's an with on the is in guys? function the your opportunity of

Mat Ishbia

along That's some Kyle, you're I Yes. and rules can or banks make lines, smaller and can nonbanks warehouse like the of and so also with that really follow things it's thought, players like correspondence understand we is that not to work capture other impact impact unions at working working continue on It the on on, game. with the they that and because truly jumbo see does to part closely, you us, and with That is But, know about. the jumbo grow on the how interesting help of small really opportunities we're an important that's brokers you what will these I'm just credit bigger Thanks, what brokers. not front, here industry the point the happen. players of relevant. to capital obviously, the those said, name talking impact UWM

focused we're grow on. even we that's and grow, -- brokers the As when and what

jumbo is opportunity. think I an

Kyle Joseph

Got it. Thanks on for taking my a good quarter. questions. Congrats

Mat Ishbia

you. Thank

Operator

with question Your next Stanley. of comes line Faucette the Morgan James from

Your open. line is

James Faucette

et your rate follow of self-warehouse environment up excess quarter, costs. want of competitive What's production in some some help I manage has and elevated last fact given you kind I cash were to comments mentioned around been your your seem Last the of that during warehouse Thanks. pulling environment, think lenders this to deploying order be on those like interest strategy you to Great. to quarter, back? some the cetera.

Mat Ishbia

Yes.

cash So we use lot of right? does expense of the what limit cash lot interest cash, the our when way. keep a Cash we're -- on We king. excess same is that. balance And a our doing It we have sheet. that's

that. And to so, we continue do

the change no in really strategy. there's So

not lender I and all on line are story like of What this now to work saw a cash honest a kind for that little is, small lines, have with can't warehouse the warehouse a that's the lender, really you. they get concern other of like them business issues a smaller give use that for we it's that. we some but Warehouse I correspondence. for recently concern those it's banks UWM brokers lines a UWM. not the regional do and can those because with really -- other concern. not out it's affecting to some that's right us these small actually the In Comerica smaller the It's that's I not when correspondence, that's on But story, and top Maybe lenders be obviously a with say, lines really positive a argue some that anymore. affecting more think not do of at little happens ones.

of go just a right so a again, it's UWM, broker, me some a But once for I that think we've big back huge seen client happen. Let to and and now. being don't that mover becomes

James Faucette

for couple On just and Got pricing it, pricing, conventional on How appreciate assets Game you in your a quarters, offering, question of much mentioned the I initiatives. well incentives a other bigger Mat. span guess I of in you line drag as any life have those that And on And are of including color. is, recent promotions? down having a then do margin? these X% as some the

Mat Ishbia

Yes.

are be So every exactly they're not I a wanted our to drag aspect. where Like on our margins in margins.

it don't all are question I a these your So are things concern talk brokers, discuss which that's consumers, and brokers. care To not partners UWM which of our the with at these really all. But care that we the day, investors things, then the those end we about our though, do at reality how all shareholders. all and helping about. and community, about, we that are things long And helping helps the is, our and of think estate which real that we

day, the if day. to continue single every involved going I'm this stay weeds hourly we're in not to stay so, details, like, And in with the the in

to know and to we be continue our where of in going we are, want the we're so exactly business. we be, where weeds to And

no expect And you think so, some ending winning too. quarterly of now, or and rates to on again winning, timing just in these we're the an want we're deepening things, you and third relationship success to right which all-around numbers, for that of saw our what relationship the win I UWM, brokers our in and and and there the it's helping drop is they're really just see that quarter, I with we brokers or for do when building do

James Faucette

Yes. lot, Mat. Thanks a

Operator

George with question Bose next Our KBW. comes from

is line Your open.

Bose George

to looks went your I like it it the market kind -- of last? share Game the you your ended of like versus I talk this broker and wanted you What a bit end On, that out? share? the you looks just volumes. of Can you it of And in in mean, to Hey, little guidance. you volume share but where your quarter expect guys high your stick up good morning. about to came played are above think how terms

Mat Ishbia

like happened. exactly the third Yes. right? Game all we expected happened expected quarter we This It's it. that I is [indiscernible] of So strategy. And XX something, of are actually The just consistently. we that's you as I if we this, hyperbole, (ph), seen thing figured about what at something, for. people part hopefully, doing of do talk planned do second I said for it. we competitors [indiscernible] our it doing quarter, what this my it's and what's On. question. all look you about described this what day. day, don't that is This after XXXX is And mean is rhetoric not Thanks get is we and this what what not a not I talked we quarters [BS] explain we you've the all lot when

it [indiscernible] I then am worked a is. and go all. surprised I'm down end that be so up no, margin, at share And and little we it's On to surprised high joined the bit Game going I'd what broker our our up, channel what if went the that's not didn't. picked That's and the and plan surprised do, we from because

how market business. and it their I now not up. once are is can do We I with the share to play. expect work a our we back recording, grow and realize think someone share, easy share it you that from starts how listen said great if working market a But market I for to they did year And will like and go UWM, it ago, they the like that go

so and wow, why know I didn't amazing. and guys On or try basis our brokers brought partners. loyal or us tent are Like into they on more tries so don't about XX say, you And someone points I they basis some before care were Game X become basis our them then points XX once they price. and focused us because points

so that's happened. that's of what we'll what and And That's continue. we're what proud

our Where On think working from if see the a XX% with I we're And success. the quarter, market LOs and on up. purchase you if a I consider that share our we are think are And low it's at up are I Game peaked think said, XXs, stay I in pretty that we XX. that working brokers is success the And are we there. go at we've like, our up, higher I numbers big were this with time, us this

where And about for so is and feel same new partners, time, and we're our strategy new moves new for techniques for with overall, here this great At win, continue for investors, we we're members team our and working. brokers to continue UWM. to at, strategy business build our our to and coming the at up our

Bose George

Okay. a Great. Thanks lot.

Operator

Credit question next from comes Doug Suisse. line with Your Harter of the

is open. line Your

Douglas Harter

being the Thanks. Mat, might in of about about talked that market be? may the that you what think opportunity market you be. prepared size kind that turn whenever do of eventual for How

Mat Ishbia

Yes.

so brokers. it’s by Every on Every with scale. I our of for goes supply like that unprepared. are and day loans So closing So day X% going day preparing day X.XX%, is lot goes day another for that by another every is by day people big, goes a they're deeply becoming another lay off, Every opportunity day goes Doug. a be relation we're my great right? so us. it's that where question, mean to another day, by that at competitors bigger where the

It I of if although going, like right keeps the wants this opportunity. where I building keep so, monstrosity a word, kind like an it's they at right of and now. that's And drop, rate everyone we're at months, I'm opportunity six going And but or be months and else when ready three be that three nobody know, years? going UWM will ready, is. to last don't to for

loans to go -- will $X it around have that come? $X trillion to still $X the and going that got this, this when had of three. instantly. Think say, trillion don't Rates last of just And let's to big. we're it How be maintain we've Doug, are Rates trillion and refi big don't so, know. eligible at billion And then forget, I year, be? will pretty rates $XX flip to like purchase year, go purchase, X%. all go about don't It's X.XXX% volume. you've

refi our significant. volume I will So think be

they're because And model people will then, we dependent running on all off how or now probably dependent the on relevant. how and mortgage business. are write their do say economy and the are on in They're are, competitors smart struggling of We're and you our business being how running laying That's they dependent how being being business guys We're rates. things dependent that course, maybe my great our is, dependent alive business they rates. on right successful. will and good

to do dominate, Everyone the talk we'll And the thing to this we're else best and But do. and been when too, when to that good done has what lenders see so about what things great, the think you the we'll we've will everyone going they're actually and happens what to their rates drop, happens, great. they'll what doing market that market do and continue strategy. got changes

other say quick we all lay and ready, enough they to the this like they and three a prepared and unless are death will live and firethat can't then boom too. [indiscernible] month But for people but in they hire then again, most little places they're in. off refi it are going figure out they're boom, we it's

Douglas Harter

incentive Great. other that the do how And be in And incentive think basis channels? I channel the think than the is might historically, lower as in XX kind and about broker have about points of it thought you people today? with

Mat Ishbia

it's No, lower the don't think broker in channel. I

points I in hit boom. the makes Like is drop if know it a about think it's rate don't I is. basis refi to all to consumer. enough What sense? savings XX

also be you like more XXX, to remember, X.X% it’s X%, I think everyone I but so and I said XX lean but X.XX%. are worth towards

you're have So going like the five number high big I'm the to opportunity. hit targeting a the

of Yes. to our today? is or the XX% business XX% number it's refis I I XX%. mean whatever think there being Are done

I the mean, doing -- business -- not your is a companies if of in purchase other lot still big you're of business still winning is a a market. you're refis right some now percentage And obviously you're

And will what be? the believe doing it is needs what by important. so, consumer I happen, to right

players like really that games these payment, we a miss so in not a to that that's lower brokers can that's I'll not And play believe what want these what then point quarter believe and just and in. they we

So the rural is I Yes, And I it in of refi I will the at X.XX number, be hits is think, rate, point opportunity kind come think. Xs, as think when high (ph). number good. it [X the and X.XX]

The It's rates And becomes recognize because XX the saying the we've will it houses months. we other are selling people when. XX been a the stuff now same three little so kind their it's are to and that don't bullish. business entails range, see X.X at Xs, high I X.X, in inventory months, light think I'm piece that's When that years I've great, great. don't the palatable when know now. bullish. sell expensive sometime next of year, coming, whether it's refi been business their up and opens The house, another why it's aren't the ones hit be exactly I buy it just months, more people for sell that they'll be of house. so they X, like purchase

Douglas Harter

Thank Mat. you. Great,

Operator

comes Your Sandler. the question Piper Kevin next Barker from of line with

Kevin Barker

just ask growth the the on. I wanted volume. me origination having about Great. government to Thanks for in

you believe the volume it's I and very of there? some or in a of talk quite from initiatives about saw in originate a you're it's XX% production what you. You strong. dynamic growth, whether competitive Thank doing about bit particular, pricing you're seeing market, quarter-over-quarter, that Could

Mat Ishbia

lot. a Thanks Yes.

A times, in -- the competes of not loans, with little growth initiatives. the Mae a of FHFA, bit a government Mac. FHA it's is programs which So the The and lot the home Freddie gets Fannie world really world. from is affordable lot pricing FHA

borrowers MI, And to the as so to them. for go is affordable conventional option Mae FHA was Mac borrowers those you which if do a did homes, if use to Also FHA, cut FHA. their it than go and loan. FHA And is an remember, help Freddie more it made which FHA so MI, sometimes monthly advantageous those less best Fannie their loan actually

to smart, And They're borrowers are the payment. so brokers go going smart. to are cheapest

payments So it. great the lender. market the we're FHA, conventional that We FHA if a will do market's dominate cheapest can

right now, FHA affordability own have not Freddie seeing kind you're is as Fannie cuts the little and their as because maybe MIP so some focused do programs and things of a and in pickup been stuff. this on and And successful of the FHFA

focus so it. a the best is going on But do to a going And is continue We And lot focus to VA. on. lot for we're whatever we consumer we're what to FHA. of of do

because they world save of another to We still broker.com, big in veterans Veterans work is are can and them both FHA well. government necessarily get to find a a and continue Veterans that on And lot veterans of. with mortgage speak opportunities, think opportunity. don't educate both we're money, as get to the best too, you and we've Veterans got that the

Kevin Barker

refinance be the Veterans source right the year, greater next streamline you in originations of of given sort over just a [indiscernible] to Do are the expect place? loans that

Mat Ishbia

but Veterans and great have Yes. refinances. [indiscernible] exactly. refinance does purchase and programs Yes, streamline have they so the FHA, programs, also great the

rules back there the saving we borrower rates want sense recruitment back programs and money a is any make to to or make FHA those borrower to or it veteran for so, them. enough how a to that's are have great will sure to to the be drop much how certain question much opportunity like And to about the point is about help rate invest for

that a are I veteran loans think and will program, refinancing come so too. And do but -- lot of in that

more focused veteran the I'm those But helping the buy veterans homes. on purchases,

that's there's And you're help continue do up think to because continue our going things, it see quarter-over-quarter. them And so those we doing you'll to FHA. pick things we're I has government the grown And grow you and along why can with forward. volume to see significantly seeing government

Kevin Barker

Great.

a $XX quarter? was there question. sold sold happened billion I'm see was -- after clarifying in And quarter you the Thanks. the during end. quick commented a Andrew, understand you to quarter? one that? clarify then servicing Just trying portfolio the was I Could just what believe

Andrew Hubacker

Yes. end, UPB I quarter sold. of was during was After just think billion $XX over it quarter, $XX And UPB was of the billion about sold.

Kevin Barker

you, you, Andrew. Thank Great. Okay. Mat. Thank

Mat Ishbia

you. Thank

Operator

Your of Hagen Eric next from with line BTIG. question comes the

line open. Your is

Eric Hagen

talk the what Like growth overall of Thanks. lead you guys. thinking growth follow-ups of Hi. contribute for to relative broker a a couple to itself? I some would Maybe mean here. Good the channel to could what of market, Good brokers? morning. you are share to as

more other Like you volume second the if and mean say, then the do it? a that I returning of of capital policy you've than to mean, keeping on that feel for towards up drives seller MSRs of just that of I value would broadly you're kind And been XX% get like XX% MSR doing, last your just now, question. you MSRs and you sales do your the market for so feel more think lenders. how can appetite following like how you're you self-servicing doing right volume or like question drive here.

Mat Ishbia

Yes.

If is repeat the second and sell like, first the the question we'll opportunities like But one. opportunistic. answer there's second out I'll to have there, servicing. we're So question you first,

servicing asset. the We love also

those comes that road We consumers. have it, to for about your to $XXX of refinancing take clients service and the consumers and help of opportunity the continue billion great brokers down we'll when and

so my we're decisions our but opportunities. the job is we across brokers, for Like look thinking business our right everyone members, our the here make to like team everyone, -- our shareholders And about and job all board. at

not, price, have when we thing, Whether think none good access it. we'll whole we to it, now, these there's sell a And like so sell different options. it's of opportunity self-servicing the we'll sell do right? we if right If all we

Our the a $X.X in right so liquidity strong king, having we're liquidity always I is great of extra liquidity, to now, more billion it. is done liquidity. we've across like billion, Cash board. but and access $X.X and always We've position

that's a every day weeds that we Kolo our first went make decisions feel strategy. done make Blake I week-by-week day, job, your because has So at in And And done a our of the great company. decision great Andrew the I the good want by sure and get. job, we're MSR right for I question on a time capitalize tangent, repeat has the and I about right to day. to

Eric Hagen

was helpful. itself the to growth broker like asking you channel like look was the the conditions of channel itself, about you. Thank the have share grow? that see do that would in relative I what like the No, to feel market,

Mat Ishbia

brokers. was continue We first build Well, from continue relation every perspective think move and loan a got share from to market continue I dominate I last they XX% brokers can over, But service with for and so officers things it continue realtors that day. to the these XX%, to right? year the do for to to so think quarter -- listen, was

-- I still is still broker dominating. big like So is a tell up just that's everyone if low, back I in fact as and I brokers sunshine all it enough that's there's goes one it know retail There in this that growing. like, no world, and going industry I for guys come knows winning we're the like go through imagine industry that are in and brokers are rainbows is down. in passers like no market mind like green the the upside went and Go XX%. you numbers share to to But don't the don't is the biggest relative Like this up, [indiscernible] for it's UWM. the as one sick that fun when will me. not when part like, have

XX% to it XX%, it's today, right? doing all right So And upside when to to we're less like do we're when not business XX% now. going or happens, so XX% than to goes it

scale, feel business. brokers And and at. and all UWM to opportunities where are I it's winning are we're prepared about about We're prepared for good so I growing we're succeeding and for our and brokers feel are and great together those brokers loyal

Operator

Your Kaye next with from comes Wells question of the line Michael Fargo.

is line Your open.

Michael Kaye

Hi. Good morning.

in a and both hiring a lender further obviously with brand better mortgage consumers. who's your and of emphasizing resonates be direct-to-consumer major market. is The very wholesale competitors loan a seems local to officers lender compete strong purchase One to

retail this, in better you to model trying rounder way? strategies compete threat what hands with brokers' they if as are to in especially a distributed tools go the So a such after able and much put to

Mat Ishbia

things think And is that highly too. understanding Thanks, Michael. [indiscernible] don't familiar brokers company. is I I'm appreciate company I know that do. the reality they question. what the with about,

fire deep remember work. everyone's is Legal If that too, also their the And their Officer, falling their, kind at left. because end doesn't CEO, the company you gone what said, business they've President, their brokers of have someone you fire that they CEO, strategy lost their Chief fire all off although if they've the CFO, look

do said, come saying, is tipping Now of in UWM. that And their probably a with back, a But It's win we'll local market. the broker can't when that their concept. loan a silly company, to officer of the strategy lot we just way refis. hat that says refis being

going we to else we're anything So do. can try

there's think for the a not is the the always that. you UWM so in And that is, for know does and thing and Michael, them right do doesn't brokers, America, broker this, and partner to we'll reality that continue best

back that to other that originate will just prepared. dropped processing. me brokers question market couldn't really prepared, all loan. like happens, the last the about the and aren't was rates originating like lenders The time are last share. brokers the And these process to they loan, asked when how [indiscernible] so And grow They couldn't weren't

part scale on big hire is drop PA+ scale. helping rates to their people. I built access. built is the brokers operations double have year, can't go happens we What about going brokers and when going their they're has UWM to talked have to So is succeed process. which basically next already that. don't which of PA+, don't earlier, Well, -- a for business. Brokers Everyone double they they that like

And so part of the strategy is preparing for that.

drop, point, they channel, that when company they're industry great really again, in asking they'll what you reality But when about that not you're are how sure relevant. great and tell the that really in are really which to not Michael, the then overall rates you doesn't really, they're I'm be And us too. at of know besides broker they'll they relevant when guys matter the and rates drop

Michael Kaye

Okay. Thank you.

Operator

JMP next Delaney comes Steve from with Your Securities. Instructions] question of line [Operator the

Steven Delaney

to quarter. another Hi, on you with strong great and be on Matt, congrats

Mat Ishbia

Steve. surprising. Yes,

Steven Delaney

average Doug man. obviously Yes about up know you're want information that comments in would share of at second average and you something competitors? the -- Is much you something Do -- could was too analyst Listen, with community? Andrew picking what the with that on on the quarter coupon? Or you don't guys your coupon that hands coupons. that your production. is that you that Is

Mat Ishbia

Steve. appreciate thanks, appreciate So and I appreciate I always the I questions. Yes. that, question. the

what can public right don't is number that of you in you So the at I me, information. out look average the and where interest is rate some but if have much front figure pretty data, market our is.

mean on like if it generally, UWM general, second little they I just there there's some a -- not like and when close. rates, lock that the of like might a X% you and quarter, bit right, little think in lower now, is just right But I in bit when month situations, a that space higher. but you But be the them lower depends may being that X.XX% think to And market in range.

the about rates the Xs. the and and Xs I And other Xs look XX-year all-time and it in all focus. low why that, high highs, is spreads between about if it fixed the rate that's in keep at But I talking inflation. low the so hits the high fuels way Xs, Xs, too. thing [indiscernible] talk saying forget, talk XX-year they're is the And about are don't And when remember, Xs the people

doesn't to it it to just be means normalized It And opportunity spreads refi day those of boom, back XXX numbers could day right any drop. instead down rates that thing it need a really everybody. XXX it's happen. so for XXX be And could or and could any come now to some crazy

for we're really We're -- where when We're we to for And prepared on -- Steve. and a need it. lot it, not rational we're it. But We're need -- happen, going we're it excited it our calls so to so sitting sound we don't it these can happen reality excited come competitors but back winning don't does the to about meantime. you, but they need of the for in keep happen, to that. here ready is

Steven Delaney

going of XX-year. follow long Fed to futures of [indiscernible] the go that the follow basis saying the over And end would down end we're the XXXX. to XXX I Yes. you're points market by is going suspect would the and

be point to about silly talking first for six Speakers]. like and up ready So about be it, XXXX to it's got not And us it [Multiple I at there, your lower give get point. rates you this go scaled seems could that get to months. --

Mat Ishbia

One comment, Steve.

to going think a I definitely it's market. to that outperform reason we're think the

Steven Delaney

it June been how count there. Yes. And we I growth care or year-to-date broker do of so sense to there's and employee have like point, -- that much it's you don't handy whether XX, head today get a just count,

Mat Ishbia

those But I Kolo. Blake always to talk don't you you handy. could I reality, numbers the have talk, know

you Obviously, big is. people get company, it can we're way I you're some hiring. leave, at think the you a look of some information. But we the

to think actually of XXX the earlier, you none is information our answered people, people focus. new you're XXX-plus this not in actually like people But July. there's because the as They'll It's in in right where I June, of people quarter, year, hired those hires preparing. to I XXX-plus that's next which people like our question we now. third success so our July, can we're contributing None opportunity. understand contribute are in the those building success

And refi three six aren't five to advantage is prepared, these I've be tried sometimes people years if you're slashing, is that What months, everyone slashing, to of. booms you else not They take months. explain running. And slashing. can't what might

be for have, happens. ready You can't the PA+, grow it in partnerships when the to we're we ready technology it, scale that we market share have, we're the going we have, and

everyone's Steve, be And us did at in and roadshow. every quarters, seen still don't need refis. We're like just back why that's need We in going all markets. I win to going you followed I the then, my purchase know we're in we We anything consistently meantime, stated quarter back And $XX successful. record successful. billion. don't have to to any

Steven Delaney

comment. up with follow for those numbers. on Thanks Blake, the the Appreciate I'll time. you

Operator

Vilas of with comes final UBS. question Your from line Abraham the

Vilas Abraham

Hi, for everyone. the question. Thanks

that's for just you. just a think that Thank quick, new moving contributing about to one production, little And should the multiples, forward? you dynamic how Can real margin? MSR me. bit Just how talk we about

Mat Ishbia

the question. Yes. Thanks for

those the So assumptions the doesn't more lot a I conservative a else MSRs you things, the with places, everyone little production of new multiples a of look volume at I really it. makes really are we upside that like has. based any which feel on I have just number other contribute got to than the me in And mean, maybe in that's if -- it's assumptions on little plugged or along think a our

think to is, But I the don't to tied needles reality margin, volume. really is that moving tied any

is the not on production to back to price-sensitive the point are And house. game borrowers, want purchases New buy the now. right they purchases most a

cheaper. those And find helping on so easier faster, our borrowers house and is focus the

mortgage what mortgage, the nobody business, make and the wants I'm easy a cheap, How really and mortgage, fast, the that's is we focused they wants one reality the want so it And like they no in do house. on.

it's values to a rates, like really MSR negative or tied contributing in the the positive way. not like understanding rates, understanding so And

it -- will rates drop. is. the real drop, whatever or number UWM. plugged for at that comes be a rates opportunity then are there down X And are in, that's when or rates. game though they People And when this do is X.XX the buying Just house X.XX or

let's they we're think, $X going of two if years, play to which to a billion $XXX-plus next it but And couple another million Certainly, we're the still don't just out. quarter fine. doing don't over drop make years, for just make I be going

that's make opportunity within billions you year do is there. though, and the come, so a refis And when when

it movements, know moves there. much. the really I needle if here don't And so minus make prepared points think plus for assumptions or really big MSR it. we're I and don't basis

Vilas Abraham

you. Thank Okay.

Mat Ishbia

know Thanks a for a And you, Blake appreciate busy everyone, available day. of it. Andrew we're and well, team and excited here really thank going questions, So the Obviously, We about to for have on. quarter. with call. more the great but our the have as if We're you about appreciate and support. all Kolo, we're joining going quarter doing I lot really second any the and we support, it keep is third you're brokers. have excited things the

Operator

conference call. concludes And today's this

may disconnect. now You

UWM (UWMC) 9 Aug 232023 Q2 Earnings call transcript