UWM Holdings Corporation Class A

will be a question and answer session. If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad. If you would like to remove yourself from the queue, please repress star one. Thank you. And Blake Colo, you may begin your conference.

Good morning. This is Blake Colo, 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, please refer to the earnings release issued earlier today, as well as our filings with the SEC. I will now turn the call over to Matt Ishbia, Chairman and CEO of UWM Holdings Corporation and United Wholesale Mortgage. Thanks, Blake, and thank you everyone for joining us today.

For a while now, we've been saying 2024 would be a better year for the industry than 2023. And although it hasn't been that much better yet, our production at UWM has been winning. The market might be getting better soon, which we'll talk about a little bit later, but industry value in the first half of 2024 versus 2023 is about the same. Most people are living in a purchase-driven market, but there's still tremendous upside that lies ahead. UWM has been winning. We had an amazing quarter, which we'll go through the details, but the market might be getting better here soon. While rates have stayed higher for longer, the broker channel continues to post share increases as the latest data shows the highest channel market share since 2008. So we continue to see the data on mortgage loan officers migrating from retail to wholesale. We're excited about that upside and it's starting to happen. Now there's tremendous buzz on our campus. as many of you saw at UWM Live. And those that were here saw firsthand our continued focus and investment in technology, which put UWM and the broker community in position to handle the significant increases in production that we anticipate when the Fed cuts rate multiple times over the next 12 to 15 months. Now, let's look at the second quarter performance. Whether we compare year over year or sequentially, the second quarter was a great quarter. We closed $33.6 billion in total production within our guidance with over 27 billion coming from purchase. Our production is up 6% from the second quarter of 23, and more impressive, up 22% compared to the first quarter this year. In fact, it was our highest quarterly production since the first quarter of 2022. Our gain margin was 106 basis points at the higher end of the guidance, and we generated net income of over 76 million, and that includes a decline of $115 million on fair value MSRs, which is tied to interest rates and out of our control. In the second quarter, we announced the number of products and technologies that add speed and capacity to broker channel that really just didn't exist in 2020 and 2021. We're really excited to see these things come into action. First, Mortgage Matchup, our consumer-facing website, is now the official mortgage partner of the MBA and WNBA, and we're seeing more and more people going to this website every single day. Track Plus, which enables UWM to handle everything from the closing process from title, closing, disbursement, so the broker no longer has to go outside and work with a third-party title company or anyone outside, and it saves the consumer thousands of dollars many times. This is a huge game changer, and we're taking advantage of it right now, and so are our brokers. We scaled PA Plus, which is Processor Assist Plus, allowing brokers and their processors to choose which part of the loan process they let UWM Loan Coordinator handle. This immediately adds capacity to our brokers, which will become more critical as rates come down. Finally, we continue to invest heavily in our bolt underwriting system. This allows brokers to get initial approval in as little as 15 minutes and also is allowing our underwriters to do more business every single day with technology pulling the weight on a lot of the underwriting processes. The full impact of these investments will be apparent when we enter a refined market. where you will see UWM and the brokers able to add significantly more increase in volume than the rest of the market, while still maintaining speed and the service we are known for. To put it bluntly, UWM and the broker community are thriving and are ready for when rates drop, and they will drop. You guys know me and know I'm excited about the business, and I'm excited as ever. But my 21 years of work is I never felt UWM is more prepared for the opportunity we are right now. We are prepared, and we've been building for this opportunity, and we're super excited. Now I'm going to turn things over to Andrew Hubacher, our CFO, and then I'll come back and chat later.