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What does UWM’s Mat Ishbia think about Rocket Companies‘ pending $9.4 billion deal for Mr. Cooper?
“The truth is, it’s fantastic,” he said on a Wednesday morning sales call with broker partners. “Because sometimes if you think someone is someone, and you don’t really know, and then you see who they really are, it’s very clear.”
Ishbia said he had “no ill will” toward Rocket and respects their strategy. “But it’s not good for brokers.”
Their business is to “dominate” the market, “take” real estate agents’ business, “buy Redfin” and acquire new businesses “behind their back.”
“Let’s take every refi, let’s buy a servicer and try to refinance these clients away. I respect their business strategy, there’s nothing wrong with their business strategy. It’s just really bad for brokers.”
He told broker partners that Rocket has “effectively closed down” their wholesale channel, but won’t ever announce it. It’s a recruiting advantage for UWM’s broker partners, he said. (Rocket Mortgage, through their Partner Channel, did $45 billion in originations in 2024.)
“You can’t work with Rocket knowing what they’re doing. This is not for brokers.”
Ishbia also took a few shots at its neighborhood rival’s new purchase strategy. He said they “bought a real estate business because real estate agents won’t work with them.”
Rocket declined to respond to Ishbia’s comments.
A bounty on UWM loans in Mr. Cooper’s servicing grasp
Effective Tuesday, UWM no longer has any relationship with Mr. Cooper, Ishbia said. The wholesaler had a subservicing contract with Mr. Cooper that was severed on Tuesday.
“They will never have a loan of ours again,” Ishbia said.
UWM will be using Cenlar to subservice loans and eventually plans to bring it in-house. Regarding MSR portfolios that UWM has previously sold, Ishbia said he wants broker partners to aggressively try to refi them back.
There are about 100,000 loans that UWM sold to Mr. Cooper, most being ultra-low rates from the boom years.
“There are some loans that are over 5.5% rate. All of those loans that were sold to them, I want you guys to refinance them.”
To sweeten the pot, UWM will be giving brokers 100 bps to reclaim any UWM loan in their portfolio, called “Refi Shield 100.”
“I’ll lose money just for fun,” he said. “I want you guys to take advantage and grow.”
