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UWM Holdings Corporation Announces First Quarter 2021 Results

UWM Holdings Corporation (NYSE: UWMC) reported an impressive 1Q21, with net income soaring to $860 million, a 42x increase from $20.3 million in 1Q20.

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UWM Holdings Corporation (NYSE: UWMC), the publicly traded indirect parent of United Wholesale Mortgage (“UWM”), the #1 wholesale mortgage lender in America, today announced the results for the first quarter ended March 31, 2021. UWMC reported 1Q21 net income of $860 million, a 42x increase over 1Q20 net income of $20.3 million. Additionally, the Board of Directors of UWMC declared a quarterly dividend of $0.10 per share on the outstanding shares of Class A Common Stock. The dividend is payable on July 6, 2021 to stockholders of record at the close of business on June 10, 2021. The Board of Directors also authorized a share repurchase program of up to $300 million over the next 24 months, beginning on May 11, 2021.

Mat Ishbia, Chairman and CEO of UWMC said: "The first quarter of 2021 was not only the best first quarter in our 35-year history, it also marked our first quarter as a public company and solidified our foundation for growth. We believe we now have the capital, liquidity, technology, campus and staffing necessary to further scale our business and grow to become the largest mortgage originator in the country. We welcome the shift to more of a purchase market and the pressure on margins as we believe our business model is built to outperform competitors under those conditions. Moving forward, our priorities remain the same: our people, the industry-leading service we offer to our brokers, and creating long-term value for our shareholders."

First Quarter 2021 Financial Highlights

  • Originations of $49.1 billion in loan volume, a 16% increase from the 1Q20 $42.4 billion loan volume
  • Total gain margin of 219 bps in 1Q21 compared to 95 bps in 1Q20
  • First quarter net income of $860.0 million, as compared to $20.3 million for 1Q20
  • Increased total equity to $2.78 billion at March 31, 2021 as compared to $681.5 million at March 31, 2020
  • Unpaid principal balance of mortgage servicing rights increased to $221.0 billion in 1Q21 from $85.6 billion in 1Q20

Production and Income Statement Highlights (dollars in thousands)

 

 

Q1 2021

 

Q4 2020

 

Q1 2020

Closed loan volume(1)

 

$

49,094,240

 

 

$

54,678,923

 

 

$

42,441,727

 

Total gain margin(1)(2)

 

2.19

%

 

3.05