Hello, LOs!
He wanted a war, he's got a war. Mat Ishbia's power move on Thursday has had the desired effect: it has created distinct camps within the broker space.
In the last 24 hours, I've received a dozen pro-UWM messages, and an equal number from LOs who are unhappy with Ishbia's ultimatum.
"As much as I love brokering to UWM, I'm saying BYE," one broker told me. "Their ultimatum doesn't sit well with me at all. As a broker, we have a fiduciary duty to our clients, and agreeing to no longer broker to two great lenders, who have competitive pricing, is not in our clients' best interest. I do a decent amount of business with UWM and Quicken and I told my UWM AE today that it's really unfortunate that UWM is doing this."
A number of brokers told me a variation of, "it's about time."
"Finally," said one Florida-based broker. "Mat is absolutely right and I'm glad they're doing it. Rocket only pretends to care about the broker. Everything they do is ultimately to promote the consumer direct business. Good riddance."
According to UWM, of its network of 12,000 brokers, roughly 3,000 of them used both Rocket Pro TPO and Fairway. UWM claims that 93% of people who have taken action since the Facebook Live broadcast have decided to cut ties with Rocket and Fairway. Several different broker sources told HousingWire that penalties for violating the new broker agreement were between $5,000 and $50,000.
Rocket told my colleague Brena Nath that UWM's move is philosophically in opposition to the broker spirit.
"This isn't a move to support the broker community, it actually harms brokers. This isn't a move to support the consumer, it actually harms the consumer. This is a move to support UWM, and UWM alone. A consumer goes to a broker because of choice," Austin Niemiec said. "A broker's competitive advantage is choice, it is their super power. By UWM dictating brokers to eliminate one of their choices, it harms the broker and harms the consumer, period."
It's not just brokers weighing in: On Friday afternoon, MBA President and CEO Bob Broeksmit condemned UWM's move.
"Consumers are best served when they have choices created by a robust, competitive market that offers a multitude of loan prices, products, and service levels," he said in a statement. "Our mortgage market is extraordinarily competitive, with thousands of lenders, multiple delivery channels, and varying business models. MBA does not condone activities designed to thwart competition in the mortgage market and limit loan options available to borrowers."
Here's my question to you, LOs: Does this win UWM more business than it loses? Will this put off brokers who don't have any great love or antipathy for either UWM or Rocket?
Another thing to take into consideration: Several broker sources told me the only winner in this whole thing is Home Point, the third-biggest wholesaler in America.
Hope you have a great weekend! Please share your thoughts with me anonymously at jkleimann@housingwire.com
James Kleimann
Managing Editor, HousingWire
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