The CEO of Amalgamated Wholesale Mortgage on Wednesday defended a recent controversial move in a crosstown battle with rival Quicken Credits.
UWM earlier this month said it would no longer work with any mortgage brokers who also conducted obligation with Quicken and another competitor, Fairway Independent Mortgage in Wisconsin.
“I know how different people want to represent it, but the decision was not about doing things exclusively,” CEO Matt Ishbia said in an appearance on CNBC’s “Mad Money.”
Ishbia recognized the show’s host Jim Cramer that the Pontiac, Michigan-based company gained an upper hand in the ultimatum: Out of 12,000 middlemen, not even 500, chose to continue partnering with Quicken, he said.
Quicken, the Detroit-based lending giant owned by Rise rapidly Companies, is the nation’s top mortgage lender, followed by UWM.
Ishbia claims Quicken Loans is stunting growth in the mortgage sector, but he said he does not accuse the company of illegal practices.
“The reality is, brokers are all in,” Ishbia said. “They understand that Matt and UWM is here to defend the broker channel and consumers because consumers get lower rates when they go through a broker. That’s not an impression, that’s a fact.”
Meanwhile, Rocket tells the Wall Street Journal that its lending platform has grown shop share since UWM announced the move. Fairway, for its part, told National Mortgage News that UWM’s agreement with intermediaries limits their opportunity to find lower interest rates.