In major mortgage industry news to start the new year, one of the country’s largest mortgage companies has officially gone public on the New York Stock Exchange (NYSE) after a multibillion-dollar merger.
What is United Wholesale Mortgage (UWM)?
United Wholesale Mortgage (UWM) is the second-largest mortgage originator in America (behind Quicken Loans). It was founded by Jeffrey Ishbia in 1986 in Pontiac, Michigan. His son, Mat Ishbia, took over day-to-day operations in 2013 and is now the CEO of United Wholesale Mortgage. Their main focus is on wholesale mortgage lending, underwriting loans for mortgage brokers, banks, and credit unions.
United Wholesale Mortgage Goes Public in 2021
In 2020, UWM merged with Gores Holdings IV, Inc., approved by shareholders, in order to eventually take UWM public with a $16 billion estimation—a record deal for a special purpose acquisition company (aka ‘SPAC’ which are companies whose sole purpose is to raise capital for a public offering) on Wall Street.
It was announced in 2020 that the company intended to go public and, in early 2021, it did just that with an initial value of $16.1 billion with shares going for $11.95 under the ticker symbol UWMC.
What’s Next for UWM?
According to CEO Mat Ishbia, UWM will continue pushing for growth amid an increasingly crowded mortgage market. While United Wholesale Mortgage expected to exceed its $210 billion mortgage origination projections, thanks to steadily low mortgage rates and the momentum of going public at the NYSE, they fell short at 182.5 billion. UWM stock shares dipped by 10% even with the 882% profit surge, but Ishia still anticipates a 15% growth for the company.
“We are very proud of what we accomplished in 2020 but have shifted our focus to 2021 and beyond. By going public and accessing the debt markets, we now have the capital and liquidity to not only invest in technology and service as we have always done, but also the ability to take advantage of higher profit opportunities when available or otherwise returning excess cash to our stockholders.”
If you have any questions about home mortgages, get in touch with one of the title and escrow specialists at Plymouth Title Guaranty Corporation.
Please note: The safety of our staff and clients is our highest priority. Effective immediately, Plymouth Title Guaranty Corp. will be taking the following precautions to limit the spread of the COVID-19 virus:
All purchase transactions need to take place at a Plymouth Title Guaranty Corp. closing office
- If a party to the closing is not feeling well, please contact your closer prior to the closing so appropriate precautions can be taken.
- We ask visitors to utilize the restroom in our building upon arrival to thoroughly wash hands before entering our office.
- Only individuals required to sign and/or deliver documents at closings will be allowed in our office. Specifically, closings will be limited to borrower(s), seller(s), agents, and lenders.
- All pens used in the closing will be given to the client after use.
- All closing rooms will be cleaned and disinfected in-between each closing.
- Those picking up checks at our office will be instructed to call our main line and request to speak to a staff member who will plan for delivery to the lobby or parking lot of our office.
- All staff will refrain from shaking hands before or after closings and ask clients do the same.
Please be advised that our staffing may be impacted during this unprecedented event. While we are committed to continuing to provide outstanding service, we ask for your patience in the face of this pandemic.