{"id":17922,"date":"2021-03-04T18:31:26","date_gmt":"2021-03-05T01:31:26","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=17922"},"modified":"2021-03-04T19:57:29","modified_gmt":"2021-03-05T02:57:29","slug":"mat-ishbia-draws-a-line-in-the-sand-do-business-with-rocket-mortgage-and-you-wont-do-business-with-uwm","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17922\/mat-ishbia-draws-a-line-in-the-sand-do-business-with-rocket-mortgage-and-you-wont-do-business-with-uwm\/","title":{"rendered":"Mat Ishbia draws a line in the sand; do business with Rocket Mortgage and you won’t do business with UWM"},"content":{"rendered":"

The dynamic CEO of United Wholesale Mortgage, Mat Ishbia laid down an ultimatum to the mortgage broker channel today.\u00a0 Ishbia said, in a conference call with members of the Association of Independent Mortgage Experts<\/a> (AIME), that mortgage brokerages who choose to fund loans through Quicken’s Rocket Mortgage will no longer be approved with United Wholesale Mortgage (UWM).\u00a0<\/a> I believe he laid down the same ultimatum with competitor Fairway Mortgage.<\/p>\n

WATCH:\u00a0 What is the difference between a bank, lender, and mortgage broker?<\/a><\/p>\n

The bad guys<\/strong><\/p>\n

Let’s start with this: Rocket Mortgage is to the mortgage brokerage channel what Zillow is to the real estate industry– a predator<\/strong>.\u00a0 Like Zillow, Rocket Mortgage approached the mortgage brokerage channel with great pricing causing many mortgage brokers to send loans to it.\u00a0 Its service stinks, its underwriting department isn’t knowledgeable, and it “cherry picks” all of the best borrowers.\u00a0 More importantly, Rocket Mortgage starts marketing to the mortgage brokers’ customers the day after they close their loan, attempting to render the originating broker useless.\u00a0 Rocket Mortgage sets itself up as a direct competitor to the mortgage broker the minute it pays the mortgage broker for the loan origination.\u00a0 Additionally, Rocket Mortgage solicits the real estate agents involved with the transaction to become part-time Quicken Loans mortgage originators.\u00a0 Ultimately, Rocket Mortgage is following the Zillow model and trying to eliminate real estate agents and mortgage brokers from the transaction.<\/p>\n

Economies of scale let tech-centric companies like Zillow and Quicken compress margins and deliver lower costs to the consumer.\u00a0 That’s competition and competition is good, right?\u00a0 Wrong.<\/strong>\u00a0 Quicken’s retail lending arm is almost always more expensive than an independent mortgage broker and neither Zillow nor Quicken have the local expertise and fiduciary duty a local real estate broker has.<\/p>\n

The good guy<\/strong><\/p>\n

UWM is mortgage broker-centric and Mat Ishbia is a cheerleader for the independent mortgage broker channel.\u00a0 UWM’s predecessor, Shore Mortgage was founded by his father, Jeff Ishbia in the mid 1980s.\u00a0 Mat was a member of Michigan State’s NCAA Championship basketball team in 2000 under coach Tom Izzo.\u00a0 After graduating Michigan State, Mat went to work for UWM as a wholesale account Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The dynamic CEO of United Wholesale Mortgage, Mat Ishbia laid down an ultimatum to the mortgage broker channel today.\u00a0 Ishbia said, in a conference call with members of the Association of Independent Mortgage Experts (AIME), that mortgage brokerages who choose to fund loans through Quicken’s Rocket Mortgage will no longer be approved with United Wholesale […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[],"class_list":{"0":"post-17922","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":17932,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17932\/overnight-news-which-slaves-are-wisest-to-rebel\/","url_meta":{"origin":17922,"position":0},"title":"Overnight News: Which slaves are wisest to\u00a0rebel?","author":"Greg Swann","date":"March 5, 2021","format":false,"excerpt":"I gave this observation to Odysseus a few weeks ago \u2013 opining about the world as an opinionated dog might do: \u201cTo be owned as a pet is to be loved. To be owned as an investment is to be prized. 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I have never\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2150,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2150\/mortgage-grader-revolutionary-or-just-one-more-marketing-widget\/","url_meta":{"origin":17922,"position":4},"title":"Mortgage Grader: Revolutionary or Just One More Marketing Widget?","author":"Brian Brady","date":"November 1, 2007","format":false,"excerpt":"Mortgage Grader is a consumer-operated, automated underwriting system. Jeff Lazerson, its founder, has been working on this idea for 3-4 years. It was released this summer. Consumers enter information and are issued an approval. 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