United Wholesale Mortgage’s CEO on Wednesday defended a recent controversial move in a cross-battle with rival Quicken Loans.
UWM earlier this month said it would no longer work with any mortgage broker that also does business with Quicken and another competitor, Fairway Independent Mortgage in Wisconsin.
“I know how different people want to portray him, but the decision was not about doing things exclusively,” said CEO Matt Ishbia in an appearance on CNBC’s “Mad Money” program.
Ishbia told program host Jim Cramer that the Pontiac, Michigan-based company gained an advantage in the ultimatum: out of 12,000 brokers, not even 500, chose to continue the partnership with Quicken, he said.
Quicken, the Detroit-based lending giant owned by Rocket Companies, is the country’s leading mortgage lender, followed by UWM.
Ishbia says Quicken Loans is hampering growth in the mortgage industry, although it said it did not accuse the company of illegal practices.
“The reality is that all the brokers are in,” said Ishbia. “They understand that Matt and UWM are here to protect the broker channel and consumers, because consumers get lower rates when they go through a broker. This is not an opinion, it is a fact.”
Meanwhile, Rocket tells the Wall Street Journal that its lending platform has increased its market share since UWM announced the change. Fairway, meanwhile, said National Mortgage News that UWM’s deal with brokers limits the opportunity to find lower interest rates.