UWM records second consecutive quarterly profit

United Wholesale Mortgage reported second-quarter net income of $76.3 million, including a $115.3 million decline in the fair value of mortgage servicing rights, the Pontiac-based mortgage company said Tuesday.

The Company sells mortgage servicing rights to generate cash flow to support ongoing operating capital and fund cash needs.

The mortgage giant continued to post profits after posting net income of $180.5 million on net revenue of $569.9 million in the first quarter of 2024. However, year-over-year, net income fell from $228.8 million in the second quarter of 2023.

United Wholesale Mortgage CEO Mat Ishbia said in a Tuesday report that the Pontiac-based mortgage lender had a strong quarter and is “dominating the current purchasing market while investing and preparing for lower interest rates.”

“Our momentum is picking up, margins and production are improving year over year, and we continue to focus on our best-in-class people, processes and technology. UWM and the mortgage brokerage community are in a strong position. With wholesale market share at its highest level in 15 years, we are in a great position to capitalize on and thrive when rates inevitably decline. UWM has never been more prepared for the opportunity ahead than it is now,” Ishbia said in the report.

UWM Holdings Corp. reported $33.6 billion in loans originated in the second quarter of 2024, compared to $27.6 billion in the first quarter of 2024. Of the $33.6 billion in loans originated, $27.2 billion were purchases originated.

Last week, rival Rocket Companies reported second-quarter net income of $178 million on net revenue of $1.3 billion, compared with net income of $139 million a year earlier.

[email protected]

@_myeshajohnson