UWM Holdings Corporation Class A

Good morning. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the UWM Holdings Corporation fourth quarter and full year 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, Press star 1 a second time. Thank you. Blake Colo, you may begin the conference.

Good morning. This is Blake Colo, Chief Business Officer at Head of Investor Relations. Thank you for joining us and welcome to the fourth quarter and full year 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 the 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's Holdings Corporations and United Wholesale Mortgage.

Thanks, Blake. And thank you, everyone, for joining us today. You know, 2024 was another fantastic year. And I think you saw the headlines of, you know, one of the toughest mortgage years in a while. Obviously, the last three years have been tough. We grew 29% year over year, about $139 billion. Our gain on sale was up 20%, 110 base points. And the broker channel, which is the biggest indicator, all the things we've been talking about, grew quite a bit as well. I think the third quarter metric was maybe 27.4%, which is far higher than we've seen in, you know, 15 years. All of the themes we've been talking about, have continued to happen. We've continued to dominate the purchase market, leveraged our competitive advantages in talent, technology, and world-class service, and like I said, helped the broker channel grow its highest share of industry in years. So, excited to see we retained our title as the largest mortgage company in the U.S. Now, I think in 2024 was the third consecutive year we're the number one mortgage company in America. the fourth consecutive year, the largest purchase lender in America, and now I think it's the 10th consecutive year as the number one wholesale lender. So we're very proud of what we're doing here at UWM. 2024 was an amazing year, and we're super excited about 2025. As I've spoken in the past few quarters, we continue to invest in cutting-edge technology, including AI, investing in our people, and we're in the best position to capitalize on any change in the current market dynamics. There are about $2.5 trillion and growing in mortgage rates over 6%. And so it won't take much for a shift in rates for those loans to be in the money. No matter what happens in the market, we are focused on what we can control and making sure we are more prepared than our competition. You've all heard me say this before. I'll say it again. The unique thing about UWM is that our business is strong enough that we can simultaneously win big now while also preparing for the future, whether it be interest rates dropping, consumer trends changing, new technology, or even regulatory changes. And 2024 was the lowest home sales year since 1995, and UWM had our best purchase year of all time, over $96 billion in production. We actually think that might be the highest of all time for any direct lender in history. But either way, we had an amazing 2024. Like I said, $139.4 billion in overall production, 29% increase. We also tripled our refinance business in 2024 compared to 2023, despite the interest rate environment. which we'll talk about a little bit later. We deliver about $330 million of net income, 329.4 to be exact, and our gain margin is 110 basis points, which is up from 92 basis points last year. Turning to the fourth quarter, you know, we had an amazing quarter across the board, $38.7 billion in production, well within our guidance. You know, it's also worth pointing out in that quarter, we did over $17 billion in the month of October. You know, this is like a five-week minor rate drop, what was it in, you know, August and September. And with that little thing, we almost doubled our business. And if you kind of do a quick run rate, you're thinking $51, $52, $53 billion with a small rate drop. What can happen if actually a bigger rate drop happens? We're going to all find out, but we are prepared here to double our our business plus, which is exciting. Gain margin was 105 basis points, well within the guidance for the quarter. And obviously, we did $40.6 million of net income. So once again, great year, great quarter, firing on all cylinders at UWM. We're ready for whatever the market gives us and whatever the market does, we're ready to dominate here. So I'm going to turn it over to our CFO, Andrew Hubacher. He'll give you some more information.