Content area
Full text
When the housing crisis sent big banks fleeing from third-party originations, family-owned United Wholesale Mortgage doubled-down on the channel, investing in innovative technologies and marketing strategies to appeal to mortgage brokers.
UWM became the largest wholesale lender after the channel hit rock bottom earlier this decade. Now that third-party originations are making a comeback, the company is determined to chip away at the retail channel's market share.
At the same time, UWM must protect its position from a growing number of wholesale competitors. To do this, President and CEO Mat Ishbia has set out to be an ally to mortgage brokers in unprecedented ways, particularly when it comes to technology, referral marketing and improving operational efficiencies.
In doing so, UWM is seeking to remake a piece of the wholesale channel by encouraging brokers to think beyond getting the lowest price for a mortgage and instead, consider other factors that contribute to a successful origination.
For example, the company is working to improve mortgage brokers' digital reach in a market where busy consumers are apt to shop and apply for loans online. These efforts are prompting debate about customer acquisition and where the long-term value of customer relationships resides.
As new entrants are drawn to wholesale lending by its lower-cost structure, it remains to be seen whether UWM's tactics will remain relevant in the face of this rising competition and the threat of a race to the bottom if the channel becomes more commoditized.
Key to this question is whether wholesalers can rely on broker loyalties as the channel becomes more crowded. While brokers value those close relationships, they don't want to devote themselves to any particular lender to the point that it would pose a conflict of interest with their obligations to borrowers.
But by doubling down on this approach, Ishbia is banking on UWM's ability to meet the needs of borrowers and brokers alike, while turning a profit at the same time.
Ask Ishbia about any of his competitors and the answer is always the same: "Whatever is best for consumers is going to win at the end of the day."
With the help of its brokers, UWM is winning the wholesale channel. The privately held, family-run lender lays claim to a 15% to...