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The call conveyed a broadly positive operational and strategic outlook: strong quarterly volume (+~41% YoY), robust gain‑on‑sale margins (~123 bps), successful in‑house servicing transition efforts, rapid AI deployment (Mia) driving substantial closings and refis, a live BILT partnership, and productive VantageScore rollout. Management also highlighted expense stabilization and an ambitious five‑year $1.3 trillion originations target. Notable risks discussed include market rate volatility and competition, near‑term leverage/ratio fluctuations tied to MSR trades, uncertainty around the Two Harbors transaction, and potential consumer impacts from the trigger lead rule. Overall, the positives (strong growth, margin performance, technology/partnership wins, and clear multi‑year plan) materially outweigh the operational and execution risks noted.
The company guided that it will bring all servicing in‑house this year (currently with fewer than 100,000 loans live on the new platform and moving the remainder of ~700,000 consumers onto it), reported Q1 gain‑on‑sale margins near prior strong levels (about 122–123 bps in Q4/Q1) and year‑over‑year volume growth (Q1 volume ~ $45B vs. $32B a year ago), and reiterated a five‑year ambition of doing over $1.3 trillion of mortgages (with a potential peak year near $400B and a low year $150–$200B) while keeping quarterly expenses roughly flat at about $590–600M and growing “other” revenue by ~20–25%; other metrics included Mia producing roughly 80k–100k closings over the last year with a ~40% call pick‑up (≈16k of 40k calls on a high‑volume day) driving 12–13% of refinances despite only 2–3% of the servicing book, ~12.0–12.5k brokers (only ~400–500 not “all‑in”), a pro‑channel market share ~44.7–44.8%, current broker channel share ~28% (from ~14–15% in early 2020) with a 50.1% broker goal, BILT partnership access to >6M consumers (8–10% of whom buy homes annually), rapid VantageScore rollout (live within days, ~20‑point comparability haircut to FICO), and an early view that the March 4 trigger‑lead rule reduced the typical consumer outreach from ~50 lenders to ~3–4, which may modestly support margins.
Q1 originations were about $45 billion versus $32 billion in prior-year Q1, representing roughly a +41% year‑over‑year increase. Management noted Q1 is typically the slowest quarter, making the outperformance notable.
Reported gain‑on‑sale margin was ~123 basis points in Q1 (about 122 bps in Q4). Management expects margins to remain in current ranges into Q2 with potential upside if rates decline.
Transition to in‑house servicing is underway: fewer than 100,000 loans are on the new platform today, all new loans are being onboarded, and the company expects no subservicers by year‑end. Technology partners include Black Knight and BILT.
Mia attributed to approximately 80,000–100,000 closings over the past year and is a major driver of refinance flow: despite having only ~2%–3% of the servicing book, UWM did ~12%–13% of all refinances. Mia has a ~40% call pick‑up rate (e.g., ~16k live picks on a 40k-call day).
Partnership with BILT (over 6 million users) is live and rolling; unique offering allows consumers to earn rewards for making mortgage payments via ACH (no credit card required). BILT’s user base (8%–10% homebuying propensity) provides curated lead opportunities.
UWM reiterated leadership: #1 originator four straight years and #1 wholesale lender eleven straight years. Pro channel market share was ~44.7%–44.8% last year. Broker channel share roughly doubled from ~14%–15% in early 2020 to ~28% today.
Rapid rollout of VantageScore (pilot participation) delivered early wins: broader qualification (e.g., rent inclusion), improved borrower outcomes, potential savings (~$50 per credit report possible), and immediate positive feedback from borrowers and brokers. VA enabled, FHA coming soon.
Management reported expenses declined and are effectively stabilizing (Q1 quarterly run‑rate cited near $590M–$600M). They expect expenses to remain roughly flat even as volume more than doubles over time, and outlined a 5‑year north star of ~$1.3 trillion in mortgages (2027–2031) with ~20%–25% additional other revenue from ancillary products.
Thanks for joining today. I appreciate you all. Obviously, a little different format this quarter. Hopefully you like it. We would love to get feedback on it. This probably fits my style more. Hopefully, if possible, I would love to be able to see you too. I do not think we set it up that way this time; maybe next time.
I appreciate everyone being here today. I have a bunch of questions, so I am going to go through them. I know last quarter we did not do Q&A and people missed that, so I am happy to do this and make it valuable to you in any way possible about the industry and about UWM Holdings Corporation. I have a whole variety of questions. I will try not to duplicate and will tie some together. I will read a person’s name, read the question, and go through it. If anyone has any follow-up questions, I know I cannot take them live this way, but our investor relations team, Blake and everybody else, will be able to handle your questions and help you with anything you need. Let us get started.
We will jump into it right now. First question, I have Doug Harter from BTIG: What is the status of bringing servicing in-house? What is the latest timeline transitioning all servicing to our own platform? Status of bringing servicing in-house: it is going fantastic. We feel really great about where servicing is right now and how it is going. We have fewer than 100 thousand loans on today, but all new are going on, and we have moved a bunch of loans over from Cenlar already. We feel really good about that. The process will be this year.
Over the whole year, we will bring all of our l...