UWM Holdings Corp., the publicly traded indirect parent of United Wholesale Mortgage, today announced its second quarter financial results, with America’s # 1 wholesale mortgage lender posting $ 138.7 million in net profit on a total disbursement of $ 59.2 billion. dollars, which is a record. for the second quarter.
“We demonstrated the strength of our business with our best-ever quarter in terms of overall production and purchasing,” says Mat Ishbia, Chairman and CEO of UWMC. “As we said earlier, UWM is designed to succeed not only when there is a refinancing boom and margins hit record highs, but also when margins are falling and sales are increasing.”
The record quarter also included purchases and net income of $ 24.1 billion, including a $ 219.1 million decline in the fair value of Mortgage Rights Rights (MSR).
Total shipments rose 90 percent from $ 31.1 billion in the second quarter of 2020, while purchases rose 288 percent from $ 6.2 billion during the same time. The company’s total capital jumped from $ 1.47 billion last year to $ 2.69 billion now.
The company has a principal outstanding balance on mortgage servicing rights totaling $ 260.5 billion, up from $ 109.4 billion last year. He also initiated a share buyback and repurchased 790,599 Class A common shares for $ 6.1 million.
According to the June ICE Mortgage Technology Origination Insight Report, the average number of days to close was 47 in the second quarter of 2021, while UWM kept the time to close at approximately 18 days.
The company’s 60+ day delinquency rate of 1.19% and an abstinence rate of 1.06% are much lower than the industry averages of 4.37% and 3.76%, respectively. He also launched FutureU, an internship program for children who are aging and moving out of foster care, to provide a launching pad for a career in UWM.
A document management software platform that enables end-to-end document management was also launched this quarter, making the entire process more efficient and generating approximately $ 8 million in annual savings.
The results predict third-quarter production will be in the $ 57-62 billion range. Prior to the announcement of the results, the UWMC Board of Directors announced a cash dividend of $ 0.10 per share on outstanding Class A ordinary shares due on October 6, 2021.
The company will host an earnings conference call today at 4:30 pm for financial analysts and investors.
“Consumers are increasingly realizing that working with a broker is the cheapest, fastest and easiest way to get a mortgage, and as long as the wholesale channel thrives, UWM will be the undisputed leader and champion of that channel,” Ishbia said. …