United Wholesale Mortgage

UWM Holdings Corporation
United Wholesale Mortgage
FormerlyShore Mortgage
TypePublic company
IndustryWholesale mortgage
Founded1986 (1986)
FounderJeff Ishbia
HeadquartersPontiac, Michigan, U.S.
Key people
Mat Ishbia (CEO)
Brands
  • Brand360
  • EASE
  • BOLT
Number of employees
7,000 (June 30, 2022)
Websiteuwm.com
Footnotes
[1]

United Wholesale Mortgage (UWM), formerly United Shore Financial Services, is an American wholesale mortgage lender headquartered in Pontiac, Michigan. UWM underwrites loans for independent brokers, and as of 2024 is the largest mortgage lender in the United States.[2]

History

United Wholesale Mortgage was founded by Jeff Ishbia in 1986 while working as an attorney. He founded the company as a side business under the name Shore Mortgage.[3] The company originally focused on conventional and FHA loans and the name was later changed from Shore Mortgage to United Wholesale Mortgage.[4]

By 2003, United Wholesale Mortgage had 13 employees. It expanded during the 2000s United States housing bubble after larger banks such as Wells Fargo and Bank of America exited the wholesale mortgage lending market.[5]

Jeff's son, Mat Ishbia, served as the president of the company[6] until he was named CEO in 2013.[7] Under the younger Ishbia, UWM grew from a local mortgage lender to a large-scale, national lender.

United Wholesale Mortgage underwrites loans for independent mortgage brokers.[8]

United Wholesale Mortgage went public in January 2021 through a merger with Gores Holdings IV, and the formation of a special-purpose acquisition company.[4][9][10][11] The deal made the company the highest valued company to be purchased by a special purpose acquisition company at the time, and was valued at $16.1 billion.[12]

Controversies and lawsuits

In 2018, UWM settled a lawsuit from account executives who claimed they were not paid overtime while working for the company.[13]

In 2021, Mat Ishbia announced that the company would no longer do business with any broker doing business with competitors Rocket Mortgage and Fairway Independent Mortgage.[14][15] At the time, Ishbia claimed the decision was due to the practices of those companies, including working directly with realtors instead of mortgage brokers in securing home loans.[15] In response, a lawsuit seeking class action status was filed against UWM and Ishbia in 2021.[16]

In 2022, UWM sued America’s MoneyLine, alleging that the mortgage brokerage had violated its agreement with UWM by continuing to do business with Rocket Mortgage. America’s MoneyLine filed a countersuit against UWM. In 2023, UWM won a partial ruling in the litigation.[17]

In 2023, UWM and individuals associated with the company were named in a shareholder lawsuit regarding the company's SPAC merger. The lawsuit alleged breaches of fiduciary duty in connection with the transaction.[18]

Also in 2023, media reports described allegations by former and current employees concerning workplace culture at the company, including allegations of sexism and racial issues. UWM disputed the allegations.[19][20]

References

  1. ↑ "United Wholesale Mortgage LLC". Bloomberg. November 10, 2021.
  2. ↑ Neubauer, Kelsey (November 27, 2024). "The 10 largest mortgage lenders in the U.S." CNBC. Retrieved January 9, 2025.
  3. ↑ Cain, Carol (November 28, 2020). "Ishbia never dreamed UWM would go public". Detroit Free Press. Retrieved May 9, 2023.
  4. 1 2 Ahrens, Ronald (October 5, 2020). "Shore Up". DBusiness. Retrieved May 9, 2023.
  5. ↑ "Pontiac-based United Shore could steal No. 1 ranking from Quicken Loans". Detroit Free Press. January 17, 2020.
  6. ↑ Guest, Greta (December 22, 2011). "Shore team preps to be a $10 billion player". Detroit Free Press. Retrieved May 11, 2023.
  7. ↑ "What to know about Mat Ishbia, the billionaire CEO of United Wholesale Mortgage". Detroit Free Press. February 4, 2021.
  8. ↑ Reindl, JC (March 1, 2023). "United Wholesale Mortgage reports loss, but keeps No. 1 title". Detroit Free Press. Retrieved May 11, 2023.
  9. ↑ "United Wholesale Mortgage Goes Public in Biggest SPAC Deal Ever". The Wall Street Journal. January 22, 2021.
  10. ↑ "The Biggest SPAC Deal Ever Was Just Announced. It's With a $16B Wholesale Mortgage Lender". Barron's. September 23, 2020.
  11. ↑ "Pontiac-based United Shore to merge, go public on Nasdaq". Detroit Free Press. Retrieved July 24, 2023.
  12. ↑ Hu, Krystal (September 23, 2023). "United Wholesale agrees merger with Gores Holdings to go public". Reuters. Retrieved May 11, 2023.
  13. ↑ Volkova, Maria (June 1, 2023). "UWM will pay $2.75M to settle unpaid overtime claims". Housingwire. Retrieved May 11, 2023.
  14. ↑ "UWM says it won't do business with brokers working with Rocket, Fairway". Detroit Free Press. March 5, 2021.
  15. 1 2 "United Wholesale Mortgage says its crosstown war with Quicken Loans is paying off". CNBC. March 24, 2021.
  16. ↑ Noble, Breana (April 27, 2021). "Mortgage broker seeks class-action suit against UWM over feud with Rocket". The Detroit News. Retrieved May 11, 2023.
  17. ↑ Nunes, Flavia Furlan (January 3, 2023). "UWM scores partial win in broker ultimatum lawsuit". Housingwire. Retrieved May 11, 2023.
  18. ↑ Leonard, Mike (April 3, 2023). "Billionaire Gores Sued Over United Wholesale Mortgage SPAC Deal". Bloomberg Law. Retrieved May 11, 2023.
  19. ↑ Coppola, Chris (April 13, 2023). "Report: Employees claim toxic work culture at Suns owner Mat Ishbia's mortgage company". AZ Central. Retrieved May 11, 2023.
  20. ↑ Mosendz, Polly; Melby, Caleb (April 12, 2023). "Employees Call Out Locker-Room Culture at Phoenix Suns Owner's Company". Bloomberg. Retrieved May 11, 2023.
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