United Wholesale Mortgage
{{Short description|Mortgage lender}}
{{Infobox company
| name = UWM Holdings Corporation
| trade_name = United Wholesale Mortgage
| logo = UWM Logo.png
| former_name = Shore Mortgage
| type = Public company
| traded_as = {{ubl|class=nowrap|{{NYSE|UWMC}}|Russell 1000 component}}
| industry = Wholesale mortgage
| founded = {{Start date and age|1986}}
| founder = Jeff Ishbia
| hq_location = Pontiac, Michigan, U.S.
| key_people = Mat Ishbia (CEO)
| brands = {{ubl|Brand360|EASE|BOLT}}
| num_employees = 7,000 (June 30, 2022)
| website = {{URL|uwm.com}}
}}
United Wholesale Mortgage (UWM), formerly United Shore Financial Services, is an American wholesale mortgage lender headquartered in Pontiac, Michigan. UWM underwrites loans for independent brokers, and as of 2024 is the largest mortgage lender in the United States.{{cite news |last1=Neubauer |first1=Kelsey |title=The 10 largest mortgage lenders in the U.S. |url=https://www.cnbc.com/select/largest-mortgage-lenders/ |access-date=9 January 2025 |publisher=CNBC |date=27 November 2024}}
History
United Wholesale Mortgage was founded by Jeff Ishbia in 1986 while working as an attorney. He founded the company as a side business under the name Shore Mortgage.{{cite news |last1=Cain |first1=Carol |title=Ishbia never dreamed UWM would go public |url=https://www.freep.com/story/money/business/columnists/carol-cain/2020/11/28/uwm-ceo-mat-ishbia-going-public/6426047002/ |access-date=9 May 2023 |publisher=Detroit Free Press |date=28 November 2020}} It started off focusing on conventional and FHA loans and the name was later changed from Shore Mortgage to United Wholesale Mortgage.{{cite news |last1=Ahrens |first1=Ronald |title=Shore Up |url=https://www.dbusiness.com/business-features/shore-up/ |access-date=9 May 2023 |publisher=DBusiness |date=5 October 2020}} By 2003, the company had 13 employees. It experienced large growth during the 2000s United States housing bubble after larger banks such as Wells Fargo and Bank of America exited the wholesale mortgage lending market.{{cite web| url=https://www.freep.com/story/money/business/2020/01/17/united-shore-financial-quicken-loans-mortgage/2756954001/ | work=Detroit Free Press |title= Pontiac-based United Shore could steal No. 1 ranking from Quicken Loans| date=2020-01-17}}
Jeff's son Mat Ishbia was the president of the company{{cite news |last1=Guest |first1=Greta |title=Shore team preps to be a $10 billion player |url=https://www.newspapers.com/image/118497181/?terms=%22United%20Wholesale%20Mortgage%22%20%2B%20%22mat%20ishbia%22&match=1 |access-date=11 May 2023 |publisher=Detroit Free Press |date=22 December 2011}} until he was named CEO in 2013.{{cite web| url=https://www.freep.com/story/money/business/2021/02/04/mat-ishbia-michigan-state-universityi-united-wholesale-mortgage/4388406001/| work=Detroit Free Press |title= What to know about Mat Ishbia, the billionaire CEO of United Wholesale Mortgage| date=2021-02-04}} Under the younger Ishbia, UWM grew from a local mortgage lender to a large-scale, national lender.
In 2018, UWM settled a lawsuit from account executives who claimed they were not paid overtime while working for the company.{{cite news |last1=Volkova |first1=Maria |date=1 June 2023 |title=UWM will pay $2.75M to settle unpaid overtime claims |publisher=Housingwire |url=https://www.housingwire.com/articles/uwm-will-pay-2-75m-to-settle-unpaid-overtime-claims/ |access-date=11 May 2023}}
United Wholesale Mortgage went public in January 2021 through a merger with Gores Holdings IV, and the formation of a special-purpose acquisition company.{{cite web |date=2021-01-22 |title=United Wholesale Mortgage Goes Public in Biggest SPAC Deal Ever |url=https://www.wsj.com/articles/united-wholesale-mortgage-goes-public-in-biggest-spac-deal-ever-11611336319 |work=The Wall Street Journal}}{{cite web |date=2020-09-23 |title=The Biggest SPAC Deal Ever Was Just Announced. It’s With a $16B Wholesale Mortgage Lender. |url=https://www.barrons.com/articles/united-wholesale-mortgage-to-go-public-valued-at-16-billion-51600887661 |work=Barron's}}{{Cite web |title=Pontiac-based United Shore to merge, go public on Nasdaq |url=https://www.freep.com/story/money/business/michigan/2020/09/23/wsj-united-shore-merge-go-public-tom-gores/3500768001/ |access-date=2023-07-24 |website=Detroit Free Press |language=en-US}} The deal made the company the highest valued company to be purchased by a special purpose acquisition company to date, valued at $16.1 billion.{{cite news |last1=Hu |first1=Krystal |date=23 September 2023 |title=United Wholesale agrees merger with Gores Holdings to go public |publisher=Reuters |url=https://www.reuters.com/article/us-united-wholesale-mortgage-m-a-gores-h-idINKCN26E1PH |access-date=11 May 2023}} The deal became the subject of a shareholder lawsuit in 2023, alleging breach of fiduciary duties to stockholders.{{cite news |last1=Leonard |first1=Mike |date=3 April 2023 |title=Billionaire Gores Sued Over United Wholesale Mortgage SPAC Deal |publisher=Bloomberg Law |url=https://news.bloomberglaw.com/esg/billionaire-gores-sued-over-united-wholesale-mortgage-spac-deal |access-date=11 May 2023}}
In 2021, Mat Ishbia announced that the company would no longer do business with any broker doing business with competitors Rocket Mortgage and Fairway Independent Mortgage.{{cite web| url=https://www.detroitnews.com/story/business/2021/03/04/united-wholesale-mortgage-says-wont-do-business-brokers-working-mortgage-fairway-independent/6920248002/| work=Detroit Free Press|title=UWM says it won't do business with brokers working with Rocket, Fairway| date=2021-03-05}}{{cite web| url=https://www.cnbc.com/2021/03/24/uwm-ceo-says-fight-with-quicken-loans-is-paying-off.html| work=CNBC|title=United Wholesale Mortgage says its crosstown war with Quicken Loans is paying off| date=2021-03-24}} At the time, Ishbia claimed the decision was due to the practices of those companies, including working directly with realtors instead of mortgage brokers in securing home loans.{{cite web| url=https://www.cnbc.com/2021/03/24/uwm-ceo-says-fight-with-quicken-loans-is-paying-off.html| work=CNBC|title=United Wholesale Mortgage says its crosstown war with Quicken Loans is paying off| date=2021-03-24}} In response, a lawsuit seeking class action status was filed against UWM and Ishbia in 2021.{{cite news |last1=Noble |first1=Breana |title=Mortgage broker seeks class-action suit against UWM over feud with Rocket |url=https://www.detroitnews.com/story/business/2021/04/27/mortgage-broker-pursues-class-action-lawsuit-united-wholesale-mortgage-rocket/4853364001/ |access-date=11 May 2023 |publisher=The Detroit News |date=27 April 2021}} A year later, United Wholesale Mortgage filed a lawsuit against America’s MoneyLine for continuing to do business with Rocket Mortgage in breach of its agreement; America's MoneyLine filed a countersuit against the company shortly after.{{cite news |last1=Nunes |first1=Flavia Furlan |title=UWM scores partial win in broker ultimatum lawsuit |url=https://www.housingwire.com/articles/uwm-scores-partial-win-in-broker-ultimatum-lawsuit/ |access-date=11 May 2023 |publisher=Housingwire |date=3 January 2023}}
Employees have also claimed that the company has a toxic work culture, an accusation that United Wholesale Mortgage has denied.{{cite news |last1=Coppola |first1=Chris |title=Report: Employees claim toxic work culture at Suns owner Mat Ishbia's mortgage company |url=https://www.azcentral.com/story/sports/nba/suns/2023/04/13/bloomberg-report-employees-claim-toxic-work-culture-at-suns-owner-mat-ishbias-mortgage-company/70113121007/ |access-date=11 May 2023 |publisher=AZ Central |date=13 April 2023}}{{cite news |last1=Mosendz |first1=Polly |last2=Melby |first2=Caleb |title=Employees Call Out Locker-Room Culture at Phoenix Suns Owner’s Company |url=https://www.bloomberg.com/news/articles/2023-04-12/billionaire-phoenix-suns-owner-s-mortgage-employees-call-out-sexism-race-issues#xj4y7vzkg |access-date=11 May 2023 |publisher=Bloomberg |date=12 April 2023}}
Services
United Wholesale Mortgage underwrites loans for independent mortgage brokers.{{cite news |last1=Reindl |first1=JC |title=United Wholesale Mortgage reports loss, but keeps No. 1 title |url=https://www.freep.com/story/money/business/2023/03/01/united-wholesale-mortgage-fourth-quarter-net-loss-top-mortgage-lender/69957605007/ |access-date=11 May 2023 |publisher=Detroit Free Press |date=1 March 2023}}
References
{{Reflist|2}}
External links
- {{Official website|https://www.uwm.com}}
{{Finance links
| name = UWM Holdings Corporation
| symbol = UWMC
| sec_cik = 1783398
| yahoo = UWMC
| google = UWMC:NYSE
}}
Category:Companies listed on the New York Stock Exchange
Category:American companies established in 1986
Category:Financial services companies established in 1986
Category:Financial services companies of the United States
Category:Mortgage lenders of the United States