The company saw gains in its servicing portfolio and declining origination volumes.
In the first quarter of 2021, UWM continued to be a leader in the mortgage industry, as evidenced by their increase in servicing portfolio size. During the period, UWM grew its servicing portfolio from $232 billion to $237 billion – a 2.2 percent increase. This was largely driven by an increase in bulk and third-party servicing acquisitions, which resulted in a total of $21 billion in net servicing acquisitions for the quarter.
In addition to increasing its servicing portfolio, UWM also experienced a decrease in origination volumes during the first quarter. The company reported total originations of $48 billion for the period, a decline of 28.2 percent compared to the same period in 2020. Despite this decline, UWM’s market share of total originations in the U.S. remained consistent at 3.9 percent, indicating that the company kept its position as the largest independent mortgage lender in the U.S.
UWM attributed the decline in origination volumes to the ongoing challenges caused by the coronavirus pandemic. Despite the challenges, the company was able to maintain its market leadership through its continuous focus on innovation and technology-driven capabilities. UWM also noted that its increased reliance on digital capabilities allowed it to continue to serve borrowers and advisors throughout the pandemic.
Overall, UWM reported a strong quarter in the face of difficult market conditions. The company’s growing servicing portfolio indicates that it is continuing to remain a leader in the mortgage industry, while the decreased origination volumes demonstrate that the company is adapting to the changing market environment. UWM’s commitment to technology and innovation will likely help them remain competitive over the coming quarters, allowing them to navigate the current market landscape.
This article was contributed on Oct 12, 2023
