The CEO of United Wholesale Mortgage defended a recently controversial move in a crosstown fight with rival Quicken Loans on Wednesday.
UWM said earlier this month that it would no longer work with mortgage brokers who also did business with Quicken and another competitor, Fairway Independent Mortgage in Wisconsin.
“I know how different people want to portray it, but the decision wasn’t about doing things exclusively,” said CEO Matt Ishbia in an appearance on CNBC.Bad money. “
Ishbia told the show host Jim Cramer that the Pontiac, Michigan-based company had the upper hand in the ultimatum: out of 12,000 brokers, not even 500, chose to continue working with Quicken, he said.
Quicken, the Detroit-based credit giant of Missile companiesis the nation’s leading mortgage lender, followed by UWM.
Ishbia claims Quicken Loans is holding back growth in the mortgage sector, although he said he did not accuse the company of illegal practices.
“The reality is brokers are all in,” said Ishbia. “They understand Matt and UWM are here to protect the broker channel and consumers because consumers get lower prices when they go through a broker. That’s not an opinion, that’s a fact.”
Meanwhile Rocket tells the Wall Street Journal that its lending platform has gained market share since UWM announced the move. Fairway, told for his part National mortgage news UWM’s deal with brokers limits the ability to find lower interest rates.