"I control the margins," Ishbia says
United Wholesale Mortgage (UWM), the largest wholesale lender in the US, has unveiled a new 60-basis-point pricing discount on conventional and government-insured mortgages alongside plans to issue a $500 million debt offering.
The promotion, available to mortgage brokers, applies to loans with credit scores of 720 and above and will run for 60 days.
This latest incentive underscores UWM's aggressive approach to dominating the wholesale lending space. During the company’s third-quarter earnings call in November, CEO Mat Ishbia took aim at competitors, asserting UWM’s control over margins.
“It’s always fun and cute when my competitors like to talk about wholesale and what they can do,” Ishbia said. “I control the margins. They don’t. They will follow our lead and enjoy that.”
Ishbia also recently discussed industry challenges, including rising costs for credit reports. He noted that FICO’s 40% price increase in wholesale royalty costs for 2025 has further elevated the expense of credit reports, contrasting with reductions seen in title and appraisal costs.
“Credit report costs going up again, this is not the first time this has happened,” he said. “They were much cheaper a couple of years ago.
“What that means is you and a lot of borrowers are being charged upfront for it. How often are you using soft pulls or single-bureau reports? What are the ways you can continue to save costs because this expense gets your bottom line, and if you're pulling out a lot of credit reports, you're obviously doing a lot of loans. You’ve got to close a high percentage of them to make it all make sense.
“I do not see an end in sight for this right now. So, make sure you understanthe new world that we live in and continue to dominate even with higher credit report costs.”
UWM also highlighted an increasing appetite for mortgage refinancing. Ishbia noted that 80% of borrowers plan to refinance within the next year, even for modest rate reductions of 50 to 75 basis points.
“Mortgage refinancing appears to be at a near tipping point as a lot of recent home buyers are looking to refinance to help reduce the strain on their finances,” he said, adding that borrowers with rates around 7.5% see refinancing to 7% as a worthwhile opportunity.
Read next: UWM EVP: Expect rate cuts and a busier market in 2025
“Make sure you're understanding that and taking advantage of it,” Ishbia added.
In addition to the pricing incentive, UWM announced plans for a $500 million debt offering. Proceeds from the debt issuance will be used to pay down mortgage servicing rights facilities and support general corporate purposes.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
