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Editor’s Note: This story has been updated to include a response from Austin Niemiec, EPP of Rocket Pro TPO.
During one Facebook live broadcast on Thursday, United Wholesale Mortgage announced that the company will re-enter the jumbo mortgage market. That would be news in and of itself, but UWM President and CEO Mat Ishbia also gave the company’s partners an ultimatum: From March 15, UWM will no longer partner with brokers who also work with them Rocket mortgage and Fairway Independent Mortgage Corp..
Ishbia said the move came because of alleged acts by Fairway and Rocket who he claims “violate the brokerage channel” and “put brokers out of business”.
In one Press releaseA UWM spokesman said the ultimatum came in response to “Rocket Mortgage and Fairway Independent Wholesale” participating in actions including recruiting loan officers outside of brokers and working directly with real estate agents to cut brokers out of the whole process .
“Independent mortgage brokers are leading a seismic shift in the mortgage industry and this is not the business model of some retail lenders,” Ishbia said in his State-of-the-business address on Facebook, This also included other industry-related announcements. “That’s why they’re trying to bypass the mortgage broker in the lending process. As the number one lawyer for independent mortgage brokers, protecting the wholesale channel is UWM’s responsibility. That’s why we ask our partners to do everything possible.” in with lenders who support them and their growth. “
MReport reached out to Austin Niemiec, EPP of Rocket Pro TPO, who gave the following answer:
“The incredible growth of Rocket Pro TPO, which saw business grow 125% in 2020, clearly worried Shore Mortgage. Today’s move decimates the idea of the free and open market that is so important to the brokerage community We continue to advocate the right of brokers and consumers to choose how to secure home finance. We do not support limiting consumer options – whether through economic and social pressures or intimidation tactics. “
He continued, “As we have said repeatedly, the power of a broker resides in their ability to choose the best option for their client. By trying to manipulate the market and make loan officers swear allegiance, they are sacrificing control as the business owner a company – financial penalties if they get lost – they affect their competitiveness. This move will only benefit one company, to the detriment of thousands in the brokerage community and their customers. “
Finally, “At Rocket Pro TPO, we will continue to invest in our brokerage partners, as we did with our national broker directory and Super Bowl campaign. In 2021, we will have more than $ 100 million for the Broker technology deployed and will invest more. ” Over $ 1 billion worth of marketing campaigns to raise awareness of rocket technology and the experience that independent mortgage professionals can use. We value the role of competition in the market. It brings innovation and a better experience to the table. We look forward to expanding our growing portfolio of brokerage partners over the coming weeks, months and years. “
Editor’s Note: At the time of writing, Fairway Independent had not responded to our request for comment.
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