UWM (UWMC) 9 May 242024 Q1 Earnings call transcript

Good morning. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the UWM Holdings Corporation First Quarter 2024 Earnings Conference Call. [Operator Instructions]

Blake Kolo, you may begin your conference.

morning. Good Kolo, and Blake Relations. of Business Chief is Head Officer Investor This you welcome Corporation's UWM and joining Earnings the Thank us, XXXX to for First Quarter Call. Holdings

conference to we everyone Before would forward-looking like I that start, this call includes statements. remind

UWM may this factors materially statements, turn Corporation to call morning. I Holdings to will For refer results release earnings Mat forward-looking actual and over that now information Wholesale to cause Ishbia, CEO United more that Mortgage. please the about differ from we of Chairman and issued the

great preparing Thanks, us We're Blake, opportunity. and industry, the buzz of about call. call, for our feel. On our be new a for at around and guys I for great what I better thank expected you, to members, hiring campus first last you busy of expected. lot wish XXXX mortgage extremely today. this the there's everyone, joining We're year future And A about. and housing excited I'm a of the UWM. all really quarter and talk could here things supports I to we said hundreds that earnings the team

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you business. in UWM, year, down, a momentum great. different rates something go in because refi telling America, remember, I'm and was perform purchase start this, proud including we it's company But markets, we're been will in that's mortgage the and every Now Overall, of. to UWM and look built to our about the I'm very both when tremendous excited are

jump first let's to quarter in guidance, end first closed We with our a that purchase. grown point to year-over-year. that from XX% the higher $XX I'd year's billion there's like the quarter. and of coming out fourth Now impressively, last of more into I XX% $XX.X production lenders think much at billion the compared can that over this lot of don't for we quarter, grew from quarter. say the they've

first quarter. in million time, to $XX fair I the quarter exceeded net guidance write-down income, gain very a to guiding value. points We XX been margin to profitable of a and basis includes with We've and XXX points. XXX a bumped It on XXX a for that that $XXX.X with it XX basis long was for to million

on people, focused service That our in deliver continuing to the lender continue no to demonstrate, these means results on we be of our all We industry being at. the technology, in win know in people all expectations mortgage to the don't it. what we at because country. we we best matter are our in are As by and and in what good We great know to what doing. others remaining our we're try invest things

for position quarter and dividend, is We business in As a and we XXXX, keep our quarter and will I've positioned our intend as you couple the capitalize last are volumes we've to fully great saying will saying months month, strong we hear very out. X refi rewarding in with been on from XX uniquely whether confident of strong, remain financial or been comes margin quarters, and remain shortly, to shareholders in the boom, the Andrew as next that next months. it

now prepared. I'll CFO. to things are We our over Andrew, turn

first with the generating to capital next operational our market is as a to basis. prepare invest cash XXXX performance net income to a our to of for standpoint. we is and opportunistically financing of before fair We a discussed MSRs continue sell and We in first on pleased support means the off were cycle. We've seasonal quarter. MSRs reported operationally the the traditionally quarter you, before start, that our considering for quarter continued needs. plans an Mat. from operational, during in great even as change remain This the ongoing flows Thank value and cash profitable quarter positive EBITDA slower and adjusted

quarter portfolio and first balance allowed favorable delever to to believe and accomplished have Our us we our volume. significantly while also substantial sheet sales loan to what our be derisk prices ability new supporting at were originate our MSR

different capital of We current the of our bringing just capacity, accessible available of with $XXX liquidity or and from the end to our operationally total As access end continue XXXX, year. Furthermore, positioned liquidity by billion. liquidity, cycles. of increased ranges to our and $X.X financially be last and end well borrowing leverage the that we consistent over expected under environment the believe million for market the and to including ratios and in within generally cash from improved quarter, remain

remarks. now and over President CEO, Ishbia, will closing turn our back for Chairman, Mat things I to Okay.

UWM. But XXXX close Thanks, best with mortgage we overall at definitely call in year than you're be on industry now I housing mortgage confirms remain Everything in said Andrew. America. a regard the always the the Q&A. I as and that I'll lender points will say, few for a in market, that last to before I believe seeing that, XXXX. our better the

Our remain technology, mortgage pricing and focus to on broker our elite will providing service, partnership partners.

industry welcome here UWM this many and next We in event annual which for of you many X,XXX biggest professionals mortgage know excited have on here I joined very forward in you week. LIVE!, for mortgage campus the the about of look week. I again in seeing America. past has Michigan Pontiac, to call become our I'm next the to us Lastly, of

expect between to Now XXX of show between said $XX points. improvement. be production we gain will margin the before signs to And and about basis continue looking we forward XX the second with billion what to be consistent quarter, In billion. $XX and margins, things second expect I our quarter,

at As We're members, doing always, a really we're and our together. we're of what our to to shareholders. proud thank I want really got team excited continue dominate our here We've great and team to UWM. clients

it Q&A. over to Now turn let's

question [Operator Kyle with Joseph Instructions] Jefferies. comes first Your from

a on your Mat, want quarter. Congrats great to perspective. just get I

You seeing primarily some non-agency side? that on drivers guys jumbo what have been the good are there? volume. the growth Or in Is

I side. appreciate the question. Yes, lot Kyle, the been Yes. a jumbo has of it on

the that they're a brokers much the doing traditionally that spot doing a unions jumbo really there compete obviously credit better job That's and great for there some do with things. job and with great banks brokers stuff. and Our be a with, out struggled have one out that with trying the perspective and loans that from are to we're

is part of that doing come So jumbo -- brokers' a loans. And have big and loans that jumbo way. non-jumbo those that then referrals friends our

been it other So has but bit a little in the and of focus it's most non-agency been we of a jumbo space. do

it. Got And Yes. moving over just then servicing. to

market like said, about don't assume? get past range. kind where pricing billion to I opportunities, attractive derisk But and just Is driven? in be that have of a to of seeing think and market we and function a you that the to going it's guys fair mostly there a and is talked target $XXX really the you're you more

always opportunistic, We're one looking the lot MSRs. of We're opportunities Yes. of business. out originating out there few on a there, the at

amount lot on are of of to providing a coming looking quarterly it and volume, do the we originations we're buyers the a us MSR because ones and basis. So of for

can So we can opportunistically. at year, rest hold it some of we sell the look We the more.

on at. conditions depends that are. look all the We just we different market have things It what

comes question Hagen next the line with BTIG. from of Your Eric

second from they in April just how then I the mortgage we at you to rates? benchmark given margin were trying rates tick under for that looking certainly, guidance look mean, margin about you mean, The see up here just full what in think and see we go here? -- margin do even quarter. And further to were guidance, margin the that? the just to from quarter, that out, that of square in Just stability to stable relative do the the up That's to I saw how saw we when just if maybe lower, how if you how

the for Yes. Thanks question.

comfortable felt position. the in the I The put be middle to ourselves that raise general, and you in range. enough is to to guidance XX look of to and that job it, way right at So try my guidance I XXX try in margin to give from

that barrel wholesale the XX it's up. you of range. And this So to quarter, of further. drop now it XXX that a and that I based years, the see told I rates quarter kind felt XXX to to them range was going that continue to see sustain. I on up of where I as to XX last And right is the probably where I see bottom see margins. margins couple thing up And for when trend bump I

of when the up a of when for probably more, But I let's a that little little people some this one it's usually then say to bit -- go range right I people margins that a down longer feel so higher it. bit. way And if comfortable believers. for for longer, that's think with And I'm is just those rates would longer, will not do that's say, tick think then higher

helpful. Yes. That's really

I mean mean, talked in strength growth that outlook is some having here of thing participation momentum think side, Looking I and right? support the on just are fresh capital. opportunity, at have the way the I float, the to guys seem you trading start the the getting rest origination the should the we've how investors for opportunity given about to year? with stock, an one Raising maybe maybe the stock, you more in about the mean to

it. be have a and Yes. appreciate know add like No, more question. to we lot I right investors it's a good I right take would of of now. guess to great them my base able a I now, is, in

float a However, is concern.

and opportunistic if and talk consider and want, all always it. the look there's at about look something we opportunities at we something want at can shareholders is we We're float do. we those need and and things. to look But and our So see are what about concerned definitely

comes Your from Harter of question next UBS. Doug with the line

purchases? Mat, side and in talk terms you're kind about selling of both what can the just season, demand in you of on supply new of kind seeing the side the spring

Yes, the but just a don't think media, so reported in absolutely. really mortgage far, I our not company, the seen up just year strong purchase we've it's but mainstream in market.

don't new inventories are think a I because positive. They -- story fun that's it's not up.

values doesn't some And lot first-time have homes about of good a people Fannie So to people and homebuyers it. to in done a the more people of drive opportunity talk there's Mac and out try strong are homebuyers Freddie out inventory there. market. lot into there But housing nationally and first-time is things and Mae, up,

we say strong really XX% volume. seeing of like it I on year-over-year, volume definitely that's why the so we're a but the And strong in and actually year purchase extremely increases. first it's market, won't a strong were time, like And market. best was as than stronger it's last all I overall up think in that's and I think quarter

And quarter. I strong through maintain third the so strong strong, second they'll think purchases being and are and

talked Great. second about possibly of has thoughts into And how then, that opportunity large liens. could Kind your Mat, what getting Freddie product? are And around that Mac be?

grow in do Mae trying to program Yes. a the and to good mortgage good and job It's help I way. come Freddie potentially. and mean up of a innovate interesting, ways pie Mac both a and with Fannie it's positive consumers

way, through I and little months cheaper out product that yes. form. can But products not is material today think of Yes, and any a already equity potentially, it's market Mac them that came Freddie still do out if lines really there, it's credit or potentially. months better already and it are served out, the home in in other shape

of question next Bose Your line the comes George KBW. with from

done remind Mat, in can the from terms guys you can you of your the your some us some give could us And industry? programs? happen date that potential of on title in insurance of you thoughts title -- what have terms in changes cost reducing to

Thanks the Yes. question. for

You're business the are is money I disruption, require parts title ripe understand a consumers doesn't that. those one business, The obviously for the lot that of of the of product cost. Charging in that a weeds of a industry for of insurance lot right?

ways grow them. work great things partners going that's lot been a make we're consumers is of and at a lot lean point. We're for to doing of do continue to better help the it's succeed. reality with. that. and and going brokers with so cost to extremely companies, we're with get to help and we're at to be And lot things consumers far, so to We disrupted insurance and of which companies some lower And on we title. And work title successful for in them great on looking great things title always some But

isn't go those look to great people be But people be do at do to going of They're way it, anywhere. a a better disruption for one things at because lot we're industry title of going and some that the some and of So to movement going there's there consumers, look insurance to is they things. part and it.

And then That's Great. helpful. MSR. Okay. the one just on

So about like carrying to value relative fair talk on through sales, sale, the mark the price MSR you value MSR? sale the since just looks some went it that of the the can

are and right of mean, what at where line I is. is in moment, carrying our prices the depending value that with Yes. the interesting month are time rates on the

you. sometimes so little, sometimes been lose it's a with you And negative In general, a material pick up little positive, or a you be bit. not to honest

we where of because there we're out that one unattainable few that values, it's the carry maybe we're sale values some the in enough out right at know are others So market. think it that good carrying MSRs sell the actually to

of Your next with Capuzzi question comes Brad Piper Sandler. line from the

to back the the scenario range this of are that the of you Just what just to spring that just bring it that sense going origination any end high would range? it different you the during us end of a year's And to can then selling would industry bring season? give seeing and guidance, low scenarios trends

a you hit in of mean, so I to once job I and I I range like again, the that range. Yes. think try guys -- feel middle guide that my is we'll give to the

to higher up so that down, see or a rates don't would at to honest billion of $XX it's obviously, hit enough really could what maybe good on it. below? I your us range rates help point. really go And exceed it interest go to happening And could spur think $XX up make the same be the lower end us at or you, range to a just I billion. with time, the

year, second last we quarter. think the billion I did in $XX about

last first we year's quarter. But we exceed exceeded a you we the year, big really quarter, number, And if back if numbers. be in had think quarter number second great year's at look I last so And can a that number. would last the

pick think I along hired part opportunity. we and margins handle will we volume time, people about so about, good haven't numbers do see at hiring drop numbers big hopefully, X ranges, we an really you profitable, for along with grown. And up tomorrow, be ready this. really the at UWM rates where speech And volumes, of very and our at to very are If And will the But where XX volumes same margins, and And rates these feel prepared when able we're these the drop in the at, in to successful we're prepared. significantly. drop. one about are feel to provided in we've good at can be we'll our on That's strategy way. as some talked months, we're been of at that capitalize a I these ready. be at earlier. drop the I they If rates and The in our thing business that If for ready ready. really we I are months,

a just then And follow-up.

driven In And of how volume? initiatives out for you further the expect initiatives have you terms the increased that do roll forward? going has brokers, to pricing

Yes. win things we How How at everything. we one brokers And I for initiatives looking do tools. help more price so do loans? do help make mean, many we brokers? of are always the better those we just How grow? brokers the is

new but about it's speak do roll don't that to We've AI, innovation to understand How things other or that have out done We understand. things at. some our we even whether people we on look it's tied whether technology? brokers tied

price there's constantly help win minor just to out in roll take make it more simple, client, to more a you them It's is grow. help be so then But them business. less affordable. on volume, Price purchase relevant. the is house trying category fast, one obviously, time And market, get them about, that can can you drive we're do and things the in always those easy, care of to of

are those on. that the so we're working And all things

I so to comes some more good and about grow out, whether help And something to going business feel technology, don't the or right them a help that other now, price them the always foresee at point, And look providing brokers ways initiative their really grow. innovation I at that. to foresee we we're do continue to we're that stuff, to but I

management the at I call have turn our currently over We will back time. queue to remarks. for this no questions now in closing

going to questions. the for now, proud that in keep really we're of we're things. quarter this doing about too, great we're guys. you, the thank We're Well, quarter excited and Yes. right and Thanks

supporting the day. a for the you Thank you great appreciate UWM. we Have being and on call. questions So

disconnect. you your concludes you conference and now participation, This may for Thank today's call.