UWM Holdings Corporation Class A

Good morning. My name is Christina and I will be your conference operator today. At this time, I would like to welcome everyone to the UWM Holdings Corporation third quarter 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If at any time you would like to remove yourself from the queue, please repress star 1. Thank you. 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 today, and welcome to the third quarter 2024 UWM Holding 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 the earnings release that we issued this morning. Our commentary today will also include non-GAAP financial metrics. For information on our non-GAAP financial 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.

Over the past couple of years, two of our main goals have been very clear, growing UWM in the broker channel market share by dominating a purchase and investing in preparing for the next refi boom, while others in the industry are cutting staff and tech investments just to survive. Today, I can say with full confidence that we achieved both. Our share growth and purchase dominance is undisputed. In fact, our purchase market share has grown about 300% since 2019. And historically, whenever we have grown purchase market share, we have kept it. So we feel really great about our positioning there. Now, the refi boom has not fully materialized, but we have seen a preview of it. And we were able to capitalize on it instantly while others were caught flat-footed. Preparation is the key to winning. Best teams in sports and in business find a way to win the present while preparing for the future and that's what we have done here I couldn't be prouder to lead a team that has been the unanimous number one lender for three consecutive years now along with the top purchase lender for four years and the top whole cylinder for a decade now we are down in the mortgage industry and we're really proud of where we stand are excited for the focus on the years ahead now let's talk about the third quarter we closed with thirty nine point five billion dollars of total production which is our biggest quarter in three years and well above our guidance importantly This total production primary affects another dominant purchase quarter with over $26 billion in purchase production. Notably, we also closed $13.3 billion in refis, which is our biggest refi quarter in a couple years, and a clear indicator that when the market returns to a refi market fully returns, we will succeed in that as well. Our gain margin was 118 base points, also well ahead of our guidance, another indication when refis come, our margin will grow along with our volume. We generated net income of almost $32 million, which is inclusive of $446 million decline of fair value of MSRs, which, as you know, is tied to changing interest rates and has nothing to do with how we operate our business. So to be profitable in a quarter like that with that big of an MSR hit is really unheard of and speaks to the strength of our business. We're also pleased with the adoption we saw of many of our tools and technologies into their quarters. Track Plus uses increased. It's a great technology and tool that helps brokers save consumers money. PA Plus continues to gain traction. Bold technology continues to change the industry standards by allowing brokers to have initial approval and qualify borrowers in 15 minutes less. And of course, Chat UWM, our AI-powered technology. You know, so many of these technology and tools are being utilized and used more and more, which is helping the brokers win. Remember, with as much business as we did in 2020 and 2021, These technologies that add efficiency to our business and the brokers just did not exist at the time. Additionally, mortgage matchup continues to increase traffic. Americans can save money and find a mortgage broker. This has been a huge success so far, and we're continuing to see more and more people go there. In our latest effort to help grow the broker channel, BrokerX, which was announced in third quarter, is off to a great start helping brokers train and license new loan officers. UWM and the whole broker community are in a great position to continue winning now while being prepared for what's to come. I'll now turn things over to Andrew Hugh Rocker, our CFO.