The CEO of United Wholesale Mortgage on Wednesday defended a recent controversial move in a crosstown battle with rival Quicken Loans.
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 just to do things,” CEO Matt Ishbia said in an appearance on CNBC’s “Mad Money.”
Ishbia told the show’s presenter Jim Cramer that the Pontiac, Michigan-based company prevailed in the ultimatum: Of the 12,000 brokers, not even 500, chose to continue the partnership with Quicken, he said.
Quicken, the Detroit-based credit giant owned by Rocket Companies, is the nation’s largest mortgage lender, followed by UWM.
Ishbia alleges that Quicken Loans is stunting growth in the mortgage industry, although he said he does not accuse the company of illegal practices.
“The reality is that real estate agents are all there,” said Ishbia. “They understand that Matt and UWM are here to protect the brokerage channel and consumers because consumers get lower rates 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 grown market share since UWM announced the move. Fairway, for his part, told National mortgage news that UWM’s agreement with brokers limits their chance of finding lower interest rates.