UWM reports record originations and profit growth in 3Q

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United Wholesale Mortgage set a company record for originations in the third quarter, which resulted in a massive increase in its profitability on a year-over-year basis.

The company had net earnings of $1.45 billion in the third quarter, compared with $539.5 million in the second quarter and $198 million in the third quarter of 2019. The second-quarter results come from a regulatory filing by Gores Holdings IV, a special-purpose acquisition company that UWM recently merged with in a deal valued at $16.1 billion.

UWM was the second in a spate of independent mortgage bankers going public of late.

UWM's earnings were driven by an 81% year-over-year increase in loan originations, to $54.2 billion from $29.9 billion for the third quarter last year. In the second quarter, UWM produced $31.1 billion.

The company's gain-on-sale margin for the third quarter was 318 basis points, up nearly 2.5 times compared with 129 bps one year ago.

Its total of $127.8 billion for the first nine months of this year is more than the $107.8 billion produced during all of 2019, which had previously been the best year in the company's history.

UWM also increased its mortgage servicing rights portfolio to $153.1 billion on Sept. 30 from $109.4 billion on June 30 and $70 billion on Dec. 31, 2019. The company previously said it was looking to have a $208 billion portfolio by the end of the year.

During the third quarter, UWM rolled out Blink+, a borrower-facing application portal and point of sale, loan origination system and customer relationship manager for mortgage broker loan officers to use, whether those loans are eventually brokered to the company or elsewhere.

It also introduced UWM InTouch, a mobile app for mortgage brokers.

"The innovative moves we are making now to streamline our technologies and further increase speed from loan submission to clear-to-close will support the long-term growth of the broker channel and help realize our aspiration of becoming the nation's leader in mortgage originations," Mat Ishbia, UWM's president and CEO, said in a press release.

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