The CEO of United Wholesale Mortgage on Wednesday defended a current controversial transfer in a crosstown battle with rival Quicken Loans.
UWM earlier this month mentioned it will not work with any mortgage brokers who additionally performed enterprise with Quicken and one other competitor, Fairway Independent Mortgage in Wisconsin.
“I know how different people want to portray it, but the decision was not about doing things exclusively,” CEO Matt Ishbia mentioned in an look on CNBC’s “Mad Money.”
Ishbia instructed the present’s host Jim Cramer that the Pontiac, Michigan-based firm gained an higher hand within the ultimatum: Out of 12,000 brokers, not even 500, selected to proceed partnering with Quicken, he mentioned.
Quicken, the Detroit-based lending large owned by Rocket Companies, is the nation’s high mortgage lender, adopted by UWM.
Ishbia claims Quicken Loans is stunting development within the mortgage sector, although he mentioned he doesn’t accuse the corporate of unlawful practices.
“The reality is, brokers are all in,” Ishbia mentioned. “They understand that Matt and UWM is here to protect the broker channel and consumers because consumers get lower rates when they go through a broker. That’s not an opinion, that’s a fact.”
Meanwhile, Rocket tells the Wall Street Journal that its lending platform has grown market share since UWM introduced the transfer. Fairway, for its half, instructed National Mortgage News that UWM’s settlement with brokers limits their alternative to search out decrease rates of interest.