Rocket Mortgage: UWM tries to “manipulate” the market
Tension between long-standing rivals United Wholesale Mortgages and Rocket Pro TPO, Previously Quicken Loans Mortgage Services, reached a new boiling point after the country’s leading wholesale lender announced that he would no longer be work with brokers who also work with Rocket mortgage.
Mat Ishbia, President and CEO of UWM, gave brokers and owners just over a week to sign an addendum stating that they are not working with Rocket Pro TPO.
And Rocket wasn’t the only one called out. Ishbia also gave the mandate to anyone who works with Fairway Independent Mortgage Corp.
“I’ve had a lot of brokers calling me upset, frankly, ”said Austin Niemiec, vice president of Rocket Pro TPO, in an interview with HousingWire. “I would say they feel disrespectful by any of their partners telling them what they can and cannot do.”
“Brokers are incredibly smart and savvy mortgage professionals and business owners,” Niemiec added. “They are connected to their industry. And we know we have to deliver value, and we have to support them. And if we don’t, it’s their decision and their choice to fire us. But what you see happening is quite the opposite.
In the interview, Niemiec repeatedly emphasized that a broker’s competitive advantage is choice.
“It is their super power, “he said.” What UWM is trying to do is really manipulate the market and ask brokers to pledge allegiance to a company and literally inflict financial penalties on them if they don’t listen. It hurts. their ability to compete and it hurts the consumer. Make no mistake, this was a decision for the benefit of one company and one company, UWM. “
In the announcement, UWM said the move was made in response to Rocket Mortgage and Fairway’s involvement in actions, including soliciting loan officers away from brokers and working directly with realtors to exclude brokers. of the whole process, a far from new story.
At the end of 2017, Ishbia has recorded supporting a rapidly growing movement that “focused on stopping unethical practices used by” full lenders. ” Ready ”, or BRAWL. “Will the movement cause Quicken Loans or loan deposit to go out of wholesale? Maybe not. But if they get less business, they might stop soliciting clients, ”Ishbia said in 2017.“ We always thought it wasn’t the right thing to do, but that’s how it is. These brokers say it’s like that, but we’re doing something.
Rocket Mortgage has made some significant changes since Ishbia made this statement over three years ago, including rebranding Quicken Loans Mortgage Services at Rocket Pro TPO. The company, which granted $ 320 billion in mortgages last year, said it will invest $ 100 million in brokerage channel alone in 2021.
“Three years ago we had just over 3,000 partners, and now we have almost 10,000 partners,” Niemiec said. “Brokers are teaming up with us at a record pace because we offer them real added value and we support them. “
Just days before UWM made this announcement, Rocket Pro TPO announced a new jumbo mortgage product attract independent borrowers who have been frustrated by the lack of options outside the conventional realm.
“If a broker allows one of their partners to tell them what they can and cannot do now, then who knows what that will look like in the future,” Niemiec said. “You take out several lenders and they tell you who you can and can’t work with, you might as well be a clean branch for UWM. “
Niemiec added: “We would never tell, in our wildest dreams, a broker to choose us, or anyone else. We wholeheartedly believe in competition. We will support brokers and help continue to grow our base by offering them value, not giving them an ultimatum or telling them what to do.