UWM to meme-stock traders: Nothing to see here

This week, United Wholesale Mortgage announced that a holding company controlled by its CEO, Mat Ishbia, and his father Jeffrey Ishbia, would sell 50 million Class A common stocks in a secondary offering.

Good afternoon! Was this newsletter forwarded to you? Sign up here. Hello, LOs!   This week, United Wholesale Mortgage announced that a holding company controlled by its CEO, Mat Ishbia, and his father Jeffrey Ishbia, would sell 50 million Class A common stocks in a secondary offering.   At $5.95 per share as of Nov. 17, the deal would be a nearly $300 million payday for the family. The Ishbias could receive about $340 million if underwriters purchase additional shares. But the move is part of a larger strategy, as Flávia Furlan Nunes reported.   Increasing the percentage of UWM stocks available to the public would nudge UWM one step closer to being part of the S&P 500 index, a key metric of the U.S. economy which tracks large-cap companies including Microsoft, Wells Fargo, Halliburton and Lennar.   It also makes the firm more attractive for institutional investors, rather than rookie investors, analysts told Furlan Nunes.   Earlier this year, UWM got some attention on the WallStreetBets subreddit, the same thread that encouraged people to buy GameStop and AMC Entertainment stocks in January. In one June afternoon, more than 18 million UWM shares traded, three times' its three-month average daily volume, according to stock market analysis website Seeking Alpha.   An October Securities and Exchange Commission report on the meme stocks episode concluded that the market was basically functioning normally, and recommended no policy changes. It did find that the extreme volatility "tested the capacity and resiliency of our securities markets in a way that few could have anticipated."   "The trading in meme stocks during this time highlighted an important feature of United States securities markets in the 21st century: broad participation," the report said. "There are many different types of investors, and they buy and sell stocks for many different reasons."   But it's understandable that UWM would not welcome the label of meme stock, where a social media frenzy, rather than performance, leads to soaring prices and unpredictable declines.    Let me know your thoughts on UWM's move by sending an email to gkromrei@housingwire.com.   Georgia Kromrei Senior Mortgage Reporter, HousingWire Draft defect taxonomy could have "chilling effect" on FHA market Politics & Money, HW+ Exclusive Content Envisioned to provide rules of the road for mortgage servicers, industry groups and housing advocates say the Federal Housing Administration's draft defect taxonomy would instead keep lenders away.  The Updated Qualia Homebuyer Sentiment Index 92% of recent buyers leveraged online tools to obtain a mortgage. Read on for more insights into homebuyer expectations in 2021. Learn More! Sponsored by Qualia Keep Up With the Latest Third Party Origination News Presented by Rocket Pro TPO Want to stay up to date with the latest on the third party origination front? We designed a specific news hub with lenders and brokers in mind, with Rocket Pro TPO leading the discussion. UWM waives MI with a 10% down payment, but there's a catch Mortgage, HW+ Exclusive Content UWM rolled out a new purchase product that will waive mortgage insurance payments if a borrower opts for a 10% down payment. But the catch appears to be higher interest rates.  Is UWM's plan to shed the "meme stock" label? Mortgage, HW+ Exclusive Content The Ishbia clan's recent UWM stock maneuvers suggest they're looking to shed the company's "meme stock" label, analysts tell HousingWire.  HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039 Manage preferences

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