Q2 2024 UWM Holdings Corp Earnings Call Transcript
Key Points
- UWM Holdings Corp (UWMC) reported a significant increase in production, closing $33.6 billion in total production, up 22% from the first quarter of 2024.
- The company achieved a gain margin of 106 basis points, at the higher end of their guidance.
- UWM Holdings Corp (UWMC) generated a net income of over $76 million despite a $115 million decline in the fair value of MSRs.
- The broker channel continues to post share increases, achieving the highest channel market share since 2008.
- UWM Holdings Corp (UWMC) has made significant investments in technology, such as the Bolt underwriting system, which allows brokers to get initial approval in as little as 15 minutes.
- The overall market conditions have not improved significantly from 2023, with industry volume remaining about the same.
- Higher interest rates have persisted longer than anticipated, impacting the market.
- The fair value of MSRs declined by $115 million, which is tied to interest rates and out of the company's control.
- Despite the positive outlook, the company acknowledges that the market could turn back, affecting their performance.
- Operational expenses, including direct loan production costs, have increased significantly, impacting overall profitability.
PLadies and gentlemen, good morning. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the UWM Holdings Corporation second quarter 2024 earnings conference call. (Operator Instructions) And Blake Kolo, you may begin your conference.
Good morning. This is Blake Kolo, Chief Business Officer and Head of Investor Relations. Thank you for joining us, and welcome to the second quarter 2024 UWM Holdings Corporation's earnings call. Before we start, I would like to remind everyone that this conference call includes forward-looking statements. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to our earnings release that we issued this morning.
Our commentary today will also include non-GAAP financial measures. For information on our non-GAAP metrics and the reconciliations between the GAAP and non-GAAP metrics for the reported results
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