Mortgage Broker: How UWM Builds Strong Relationships and Drives Wholesale Growth
In the dynamic world of mortgage lending, United Wholesale Mortgage (UWM), headquartered in Pontiac, Michigan, has risen to prominence as a leading wholesale lender over the past four decades. From its humble beginnings as Shore Mortgage in 1986, UWM now operates from a sprawling 600,000+ square-foot campus. The company attributes its success directly to the strength of its relationships with independent mortgage brokers.
The Broker-Centric Approach
UWM’s philosophy revolves around the understanding that brokers are the engine of their business. According to company executives, every decision and initiative is driven by a commitment to broker success. Desmond P. Smith, EVP and Chief Growth Officer of UWM, emphasizes that supporting brokers is the company’s top priority.
“We have no other way to support the nearly 9,000 people who work at UWM if brokers aren’t successful,” Smith explained to Mortgage Professional America. “We are 100% aligned with the success of brokers. Their success is our success.”
The Rise of the Wholesale Channel
The wholesale mortgage channel is experiencing significant growth, currently accounting for nearly 30% of the market share. Smith attributes this trend to the speed and cost-effectiveness of wholesale lending compared to traditional retail transactions.
“Brokers deliver a cheaper, faster, and better experience for the end consumer than what retail has traditionally done,” Smith stated. “The average cost for a consumer working with a broker is typically significantly lower. This is a key driver of the channel’s continued expansion, and we anticipate it reaching 50% in the coming years.”
From Retail to Wholesale: A New Perspective
Brokers transitioning from retail to wholesale often experience a significant shift in perspective. Smith, who spent the first 25 years of his career in retail banking, shares a similar experience.
“I initially believed retail was the only way to operate,” he admitted. “But seeing the wholesale side opened my eyes. In retail, you’re limited to one option, one process. You don’t realize that underwriting doesn’t need to take two weeks, or appraisals ten days to return.”
He continued, “Brokers have access to multiple products and pricing options, empowering them to make the best decisions for their clients, rather than being dictated to by their employer.”
UWM: Your Back Office Partner
When brokers partner with UWM, the company emphasizes its role as a supportive back office. While UWM offers guidance and resources, it respects the independence of each broker.
“We encourage brokers to visit our campus and see how we operate,” Smith said. “We see ourselves as your back office, providing the infrastructure you need to succeed. You, the mortgage broker, focus on building relationships and serving your community, and we’ll handle the rest.”
Empowering Broker Growth
UWM actively supports brokers in growing their businesses, starting with helping them define their goals.
“I always tell brokers to first figure out what they want to achieve with their brokerage,” Smith advised. “What will bring you joy and fulfillment? Once you have clarity, UWM will provide the resources to help you reach your objectives.”
These resources include marketing support, licensing assistance, and streamlined loan processing. “We’ll help you with pretty much anything to support your success. The biggest challenge is often simply clarifying your goals and then leveraging our resources to achieve them.”
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This article is part of our Monthly Spotlight series, focusing on broker/lender relationships. Full coverage can be found here.
