One oddity within the mortgage world lately is that the nation’s high lender, United Wholesale Mortgage, because the title implies, is a wholesale lender.
This implies you possibly can’t apply for a house mortgage with them instantly. Regardless of that, they nonetheless command an enormous lead on the high of the mortgage lender rankings.
They fund many billions extra in loans than their nearest rival, Rocket Mortgage, which excels within the consumer-direct house.
So how on Earth did UWM get so large and the way do you apply for a mortgage with them anyway?
Enable me to clarify.
United Wholesale Mortgage (UWM) Is the #1 Mortgage Lender in America
- UWM is the nation’s largest mortgage lender general (2024 and 2023)
- However they’re a wholesale lender that means you possibly can’t work with them instantly
- The one solution to get a mortgage with UWM is through an middleman generally known as a mortgage dealer
- Regardless of this the Pontiac, MI-based firm funded roughly $138 billion in house loans final 12 months
- That was almost $50B greater than #2 general Rocket Mortgage
- It’s unusual that the highest lender isn’t consumer-facing (previously brick-and-mortar banks had been the highest mortgage lenders)
- However the firm has considerably boosted the wholesale lending channel, which beforehand peaked throughout the lead as much as the GFC within the early 2000s
This most likely sounds tremendous bizarre, however you possibly can’t apply for a house mortgage instantly with United Wholesale Mortgage.
Sure, you learn that proper. You can not name UWM and converse to a mortgage officer (they don’t have them).
Nor are you able to go to a UWM department and apply for a mortgage in individual (they don’t have them).
You may’t even go to their web site to use for a house mortgage (sure, they’ve a web site, however not for customers).
However apparently none of that issues as a result of enterprise is booming on the Pontiac, Michigan-based firm, which obtained its begin all the way in which again in 1986.
In truth, they had been the nation’s largest mortgage lender in 2024 (and in 2023), beating out the likes of Rocket Mortgage, CrossCountry Mortgage, Chase, U.S. Bank, and lots of others.
And by a really massive margin. Final 12 months, UWM funded about $138 billion in mortgages, whereas #2 Rocket solely mustered mortgage quantity of $92 billion.
So it’s not even shut.
You Might Have Heard of UWM. However There’s No ‘Apply Now’ Button
As a client, you may need heard their title and could possibly be considering, “Hey, I need to test them out.”
You may even go to their web site and search for the “apply now” button, solely to be left disillusioned.
As a substitute, you’ll see a B2B web site that talks about partnering with the nation’s #1 mortgage lender.
Confused but? Effectively, you have to be. It’s fairly bizarre.
Let’s clear it up. Because the title suggests, UWM is a wholesale mortgage lender, which implies they work with independent mortgage brokers.
That makes them a B2B firm as a result of they don’t work instantly with most of the people.
As a substitute, they rely on these mortgage dealer intermediaries to promote their product.
These brokers could function a small mom-and-pop store beneath their very own title, or run a bigger brokerage with their very own branding and a number of staff.
Both manner, the one solution to get a mortgage from UWM is to work with certainly one of their authorised companions, which might be certainly one of these brokers.
So it’s sort of a two-step course of. You should attain out to a mortgage dealer first, and in the event that they select UWM amongst their many companions, they’ll ship your mortgage particulars on to UWM, which then extends financing.
However right here’s the sort of difficult half. Mortgage brokers can have a lot of totally different lender companions.
In truth, that’s sort of the principle goal of being a dealer. You don’t work with a single lender, however relatively a number of firms to hunt out the very best financing on your shoppers.
For instance, a mortgage dealer may fit with UWM, Rocket Professional (which is Rocket Mortgage’s wholesale division), Pennymac, Newrez, Freedom Mortgage, and lots of others.
They’ve mainly obtained a bunch of lenders at their disposal that they’ll store on behalf of you, the borrower.
If it seems UWM is the best choice based mostly on their buying, your mortgage needs to be positioned with the corporate.
You Can’t Really Select UWM for Your Mortgage Wants
What this implies is it’s fully out of your arms to “select UWM” until you by some means explicitly advised your dealer, “Hey, I would like you to make use of UWM.”
However that wouldn’t actually make sense as a result of customers don’t have entry to UWM’s mortgage charges, charges, mortgage applications, course of, and many others.
It’s all inner, B2B stuff reserved for his or her mortgage dealer companions. They work to woo mortgage brokers, not customers.
Solely after the actual fact may you discover out that your mortgage was positioned with UWM.
And after the mortgage funds, your mortgage could be serviced by UWM, that means they gather month-to-month funds and deal with escrow accounts.
Nonetheless, if and when it got here time to refinance or purchase one other property, you couldn’t go to UWM and ask them to provide you a mortgage.
You’d have to return to your mortgage dealer (or one other dealer) and undergo the identical course of.
That dealer would then want to find out a second time if UWM was the very best match on your mortgage state of affairs.
Perhaps they aren’t this time. Maybe a special wholesale lender has higher pricing on a rate and term refinance or subsequent house buy mortgage.
So once more it could be left to likelihood the place your mortgage finally ends up. It could possibly be UWM once more, or it could possibly be Rocket Professional, Pennymac, and many others.
Now it won’t matter a lot anyway as a result of the dealer is the one offering you with service throughout the mortgage course of.
And as soon as the mortgage funds, it’ll be the identical 30-year fastened (or no matter mortgage product) you would get from any variety of totally different banks/lenders.
As well as, the mortgage servicer you wind up with after funding won’t be all that totally different (or the mortgage might even be bought off to a third-party firm that isn’t affiliated together with your lender).
Solely a Dealer Can Select to Place Your Mortgage with UWM
Lengthy story brief, you possibly can’t select UWM as your mortgage lender. However your dealer might ship your mortgage to them.
After all, UWM is the nation’s high lender (even larger than all retail lenders), so clearly quite a bit brokers are willingly selecting to ship their loans there.
In different phrases, when you work with a mortgage dealer, there’s a reasonably good likelihood you’ll get a mortgage from UWM regardless.
In the event you do occur to go to the UWM web site, there’s a part devoted to “Homebuyers” together with a blurb about connecting you with an area mortgage skilled.
Assuming you click on that hyperlink, it is going to take you to Mortgage Matchup, which is UWM’s mortgage dealer listing.
When you join with a dealer on that web site, they could or could not ship your mortgage to UWM. As a result of as famous, brokers work with a lot of totally different wholesale lenders (apart from UWM).
However you’ll at the least be within the wholesale realm, the one enterprise channel by which UWM operates.
Earlier than creating this web site, I labored as an account government for a wholesale mortgage lender in Los Angeles. My hands-on expertise within the early 2000s impressed me to start writing about mortgages 19 years in the past to assist potential (and present) house patrons higher navigate the house mortgage course of. Observe me on X for warm takes.
