Pontiac-based United Wholesale Mortgage successfully increased its profit and mortgage volume despite a market slowdown in its mortgage business, posting a net profit of 326 million in the third quarter turned into dollars.
The company also reported that total mortgage originations reached approximately $33.5 billion. This surpassed Dan His Gilbert’s Rocket His Mortgage as the top mortgage lender in the U.S. for the first time since 2018.
UWM’s net income for the quarter was $325.6 million, up from $215.4 million in the second quarter. In the third quarter of 2021 he was below $329.9 million.
UWM does not report gross revenue figures.
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Rocket Mortgage’s parent company on Thursday reported $25.6 billion in third-quarter originations and $96 million in net income or earnings.
Rocket remains the nation’s No. 1 in mortgage volume ($114 billion) for all three quarters of the year, but UWM is closing the gap with $102 billion.
Rocket’s financial performance has been significantly impacted by a slowdown in mortgage refinancing activity caused by rising interest rates. Refinancing has traditionally been Rocket’s primary profit center.
UWM, unlike Rocket, does not make direct consumer loans. All of its business is underwriting loans for independent mortgage brokers, known as ‘wholesale’ lending, which is typically low margin.
Rocket also continues to outperform UWM in profit margin per loan, averaging 2.69% in the third quarter compared to UWM’s profit margin of 0.52%.
UWM CEO Mat Ishbia was very optimistic on his earnings call with Wall Street analysts Friday morning.
“We are thrilled to host this conference call as the nation’s #1 mortgage lender.”
Rocket representatives were not immediately available for comment on Friday morning.