Yesterday Matt Ishbia, CEO of United Wholesale Mortgage ($UWMC), declared war on his main competitors Rocket Mortgage ($RKT) and Fairway Independent Mortgage (not publicly traded) in a company update done on Facebook Live. Watch here: https://fb.watch/423ZojMyjC/
Wholesale lending to consumers through a network of independent mortgage brokers is UWMC and FIM entire business and makes up about 25% of RKT’s.
Ishbia said UWMC will no longer work with mortgage brokers that work with either RKT or FIM claiming that the other two companies use slimy tactics that hurt mortgage brokers. They are requiring that every mortgage broker sign an addendum by March 15 agreeing to not work with RKT or FIM.
UWMC said that they had heard from about 580 mortgage brokers by last evening and that 550 had signed the addendum (there are an estimated 40,000 brokers in the US according to the Association of Independent Mortgage Experts)
This will be a disaster for someone. If UWMC can successfully prevent brokers from working with anyone but them, it will destroy FIM and put a big hole in RKT’s income statement. If it doesn’t work and brokers continue to work with RKT and FIM, UWMC will fall apart unless they backtrack on their ultimatum.