Lawsuits, promotional financing and other news from No. 1 lender UWM

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United Wholesale Mortgage has started 2024 as the No. 1 lender in overall wholesale home and purchase mortgage origination in the U.S., but its journey hasn’t been smooth sailing.

The company’s fourth-quarter procurement output reached a record high of US$20.68 billion. Rockets fourth quarter loan volume summary $17.26 billion, although the $24.4 billion total for the period was down from the $29.7 billion and $25.1 billion UWM reported in the third quarter Season 4, 2022.

For the full year, UWM lost $69.8 million on a GAAP basis in 2023, compared with a net profit of $931.9 million a year ago. The reason for the loss in 2023 is Valued at market capitalization of US$854.1 million its mortgage servicing rights.

Despite MSR challenges for lenders, UWM Chairman and CEO Mat Ishbia is undeterred: “I see these as opportunities,” he said on the company’s earnings call in February express.

read more: UWM loses money in fourth quarter, but remains largest lender

UWM faces another challenge. Following legal battles in recent years over creditors requiring workers to sign employment contracts, a National Labor Relations Board judge ruled on Jan. 11 that the contracts actually violated the law. numerous labor laws.

In her ruling, Administrative Law Judge Susannah Merritt said employees would view many of UWM’s provisions as unlawfully prohibiting them from discussing workplace conditions, disputes, wages, union efforts and more. The judge also found language regarding arbitration, social media use and media contacts. Violation of labor laws.

UWM announced in a statement that it disagrees with the judge’s ruling and plans to appeal, but if the NLRB’s ruling is affirmed, in addition to striking out the illegal portions of the contract and distributing revised versions to current and former workers, the company would also have to issue A 4-page addendum to the statement, posted digitally and around its offices for 60 days, states that the NLRB found the company violated labor laws and reaffirms workers’ rights.

read more: Cyberattacks, labor disputes among legal battles worth watching this year

While this and several other legal battles unfold over the origins of the business, UWM has taken a proactive step by announcing the launch of Refi 100, a special 100-based loan to help its brokerage partners in the next wave of Stay ahead of the competition in refinancing. Point pricing promotions on conventional and term refinance rates.

During its third-quarter earnings call in November, Ishbia said the company had employs more than 1,000 workers In fact, refinancings accounted for 34.2% of total mortgage applications in the week ended January 26, up from 32.7% the week before, according to the Mortgage Bankers Association’s latest survey.Fannie Mae in January projected single-family home refinancing volumes in 2024 Soaring to US$490 billion Just $246 billion last year.

Check out all of our recent reporting on the top U.S. banks.

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