Earlier this month, UWM said it would no longer work with any mortgage brokers who also do business with Quicken and another competitor, Fairway Independent Mortgage in Wisconsin.
“I know how different people want to portray him, but the decision wasn’t to do things exclusively,” CEO Matt Ishbia said during an appearance on CNBC’s “Mad Money”.
Ishbia told the show’s host Jim Cramer, the Pontiac, Mich.-Based company got the upper hand in the ultimatum: Out of 12,000 brokers, not even 500, chose to continue to s ‘associate with Quicken, he said.
Quicken, the Detroit-based credit giant owned by Rocket Companies, is the nation’s largest mortgage lender, followed by UWM.
Ishbia says Quicken Loans is slowing the growth of the mortgage industry, although he does not accuse the company of illegal practices.
“The reality is that brokers are all,” Ishbia said. “They understand that Matt and UWM are there to protect the broker channel and the consumers because consumers get lower rates when they go through a broker. It is not an opinion, it is a fact. ”
Meanwhile, Rocket tells the le journal Wall Street that its lending platform has increased its market share since UWM announced the move. Fairway, for his part, says National mortgage news that UWM’s agreement with brokers limits their chance of finding lower interest rates.