United Wholesale Mortgage raised $ 139 million, of which $ 59 billion in the second quarter.

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Despite the fact that UWM Holdings posted a record volume, the net profit in the second quarter decreased compared to previous periods. Declining margins and a decline in the fair value of mortgage servicing rights offset the larger numbers.

UWM reported net income of $ 138.7 million for the quarter, compared with $ 860 million in the first quarter and $ 539.5 million in the first quarter. second quarter of last year.

However, United Wholesale Mortgage had $ 59.1 billion in mortgages in the most recent period, up from $ 49.1 billion in the previous quarter and $ 31.1 billion in the same period last year.

“As we said earlier, UWM is built to succeed not only when there is a refinancing boom and margins are at an all-time high, but also when margins are shrinking and sales are increasing,” said Mat Ishbia, chairman and chief executive officer. Press release.

Total volume exceeded expectations of $ 51 billion to $ 55 billion Ishbia set in first quarter profit call.

In addition, the wholesaler had the best quarter to buy mortgages at $ 24.1 billion, nearly double the $ 12.2 billion in the first quarter and about 389% more than the $ 6.2 billion received in second quarter of 2020.

The overall growth margin fell to 81 basis points in the quarter, down from 219 basis points in the first quarter and 243 basis points in the second quarter of 2020. This is the lower end of the 75 to 110 basis point range forecast by Ishbia during the first quarter. call.

This decrease in margins pushed UWM’s loan proceeds down to $ 479.3 million in the second quarter. Loan revenue was $ 1.07 billion in the previous quarter and $ 756 million a year earlier.

UWM’s mortgage rights portfolio rose to $ 260.5 billion on June 30, up from $ 221 billion three months ago and $ 109.4 billion a year earlier.

The portfolio increase boosted service revenue to $ 145.3 million in the second quarter, compared to $ 123.8 million in the first quarter and $ 62.1 million in the second quarter of last year.

However, a $ 219 million decrease in MSR fair value resulted in a $ 484.7 million decrease in total net revenues. Compared to $ 1.19 billion in the first quarter and a $ 59.3 million decline in MSR fair value. In the second quarter of 2020, UWM posted total net revenue of $ 830.6 million without changing its fair value MSR.



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