It’s official. United Wholesale Mortgage (UWM) is the nation’s largest mortgage lender.

The Pontiac, Michigan-based wholesale lender took the highest spot for all of 2023 after simply beating out former #1 lender Rocket Mortgage.

In whole, the corporate funded $108.3 billion in dwelling loans throughout the yr, in comparison with Rocket’s $78.7 billion tally.

Crosstown rival Rocket, based mostly in Detroit, had been the nation’s high mortgage lender since 2018.

Previous to that, Wells Fargo was the highest canine, although the San Francisco financial institution has steadily shrunk its mortgage footprint through the years. Nonetheless, they continue to be in third place.

UWM Generated the Most Mortgage Quantity of Any Mortgage Lender for All of 2023

Much like their predecessors, UWM was capable of beat out the remainder of the competitors in 1 / 4 or two earlier than attending to the highest of the pile.

However they lastly mustered outright victory for a complete yr in 2023, with out even needing their fourth quarter manufacturing of $24.4 billion. That’s fairly spectacular.

After all, it wasn’t all excellent news. The corporate nonetheless noticed manufacturing fall year-over-year from $127.3 billion in 2022.

They usually misplaced cash final yr as effectively. UWM recorded a web lack of $69.8 million in 2023, in comparison with $931.9 million of web earnings in 2022.

Although UWM Chairman and CEO Mat Ishbia mentioned they’re “operationally worthwhile,” and that the loss was the results of MSR markdowns associated to rate of interest actions.

Given how tough of a yr it was for the mortgage business, they’re in all probability pleased to be the place they’re at.

Additionally they noticed annual positive aspects within the jumbo mortgage and non-qualified mortgage product class, which incorporates newly-launched dwelling fairness strains of credit score (HELOCs).

UWM Claims Prime Spot Regardless of Being a Wholesale-Solely Lender

What is maybe extra outstanding about UWM’s ascent to the highest is the truth that they solely work within the wholesale channel.

This implies they don’t have any retail operations, and as a substitute depend on mortgage brokers to convey enterprise to them.

So if you wish to work with them, it’s a must to undergo a mortgage dealer first.

In the meantime, many different mortgage firms, together with Rocket, have each retail and wholesale operations.

So this speaks to the super push UWM has made to get to #1, and in addition the rise within the mortgage dealer share usually.

Again within the early 2000s, mortgage brokers have been blamed for the housing disaster that transpired. At the moment, it appears they’re again in full power.

And it’s not simply mortgage refinancing that bought them to peak place. It’s largely buy lending, which is usually extra private and near dwelling.

Ishbia additionally famous that the corporate was the primary wholesale lender for the ninth yr straight.

In case you weren’t conscious, he additionally just lately bought the Phoenix Suns and Mercury.

UWM Is the Nation’s Main Residence Buy Lender Too

Currently, the mortgage market has been decidedly purchase-driven. With mortgage charges nearer to 7% than 3%, only a few debtors are refinancing.

Regardless of this shift, UWM was capable of seize a document $93.9 billion in dwelling buy loans throughout 2023.

This whole alone was greater than sufficient to beat out the second largest lender, excluding their refinance enterprise.

That meant their buy enterprise did a lot of the heavy lifting, accounting for almost 87% of total mortgage origination quantity.

And such enterprise elevated from $90.6 billion in 2022, $87.3 billion in 2021, and $42.9 billion in 2020.

In the meantime, mortgage refinance quantity totaled simply $14.4 billion throughout the yr, down from $36.5 billion a yr earlier.

Assuming mortgage charges enhance going ahead, UWM might see their manufacturing improve markedly.

With regard to 2024, they anticipate first quarter manufacturing to vary from $22 to $28 billion, in comparison with $24 billion in Q1 2023.

So it seems like they’re going to remain atop the rankings for some time, although if Chase needed to, it might in all probability make a push as effectively.

I ought to have an entire listing of the highest 2023 mortgage lenders quickly.