UWM Holdings Corporation Class A

good morning my name is aaron and i'll be your conference operator for today at this time i'd like to welcome everyone to the uwm holdings corporation third quarter 2025 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 and if you would like to ask a question during that time simply press star followed by the number one on your telephone keypad If at any time you'd like to remove yourself from the queue, please press star followed by the number one again. Blake Colo, you may begin your conference. Thank you.

Good morning. This is Blake Colo, Chief Business Officer and Head of Investor Relations. Thank you for joining us and welcome to the third quarter 2025 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 reconciliation 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, President, and CEO of UWM Holdings Corporation and United Wholesale Mortgage. Thanks, Blake, and thank you everyone for joining.

Over the past three plus years, we've successfully navigated a higher rate environment with a focus on taking market share, showcasing that we are uniquely capable of both dominating purchase business and investing for the future. While most other lenders scale back, we invested in our people, our technology, and the broker channel, which are all operating at all-time high levels. We've been prepared for a rate rally for years. And the third quarter gave us a little bit of a glimpse of what would it look like. And we delivered on everything we said we would. To give you a more tangible example, showcasing our capabilities, one day in September, we had an all-time record lock day. We locked $4.8 billion. Yes, $4.8 billion of locks in one day. We handled it all in one day, along with submissions that followed seamlessly. Now, that was only a three-, four-, five-day window of opportunity, and we took advantage of it by handling all the volume all the way through our organization from setup to submission to underwriting to closing to client service priorities. It all went pretty close to flawless. We maintained turn times, SLAs, world-class net promoter scores, and our submission and critical close times actually got even faster from 12 days to 11 days, which are like record-breaking numbers. It was phenomenal to see across the board. The execution, because we have been preparing for years, when you actually have to do it and execute, you never know how it's going to go, and it went amazing. The investments we have made in technology will continue to solidify our competitive advantage, and the gap between UWM and our competitors continues to widen. Back in May at UWM Live, we made headlines introducing Mia, our most intelligent agent, a generative AI loan officer assistant. A lot of people were unsure of what this meant and how it would impact business, but we now have actual results. Mia has made over 400,000 calls on behalf of our mortgage brokers, helping them stay in touch with past clients. Remember, as I told you before, 97% of all borrowers love their experience with a broker and want to work with them in the future and have a great experience, but only 10% remember who their broker is when they want to refinance again. Mia is built to solve that issue, and she's doing it. She made over 400,000 calls, starting business conversations with borrowers on behalf of the brokers. These were mostly the rate watch calls, And of these, over 14,000 have already closed. What's interesting is we forecasted a 10% to 15% answer rate, and we've actually seen over 40% answer rate. MIA has been phenomenal. We've been saying from the beginning that our business tied to AI is based on three main issues. Enhancing knowledge, which Chat UWM does, along with a couple other things we've done. Create efficiency, which Bolt has done. And then the hardest one to solve is growth, which MIA is doing. by solving the issue of brokers missing business from their past clients. So having over 14,000 closings from this in the last couple months is even higher than we expected when we rolled it out by a wide margin. And that's why we are the biggest and best mortgage company in America. We have been for years, and now we are just accelerating and widening the gap. Separately, Mia also answered about 70,000 inbound calls. Once again, this is actual AI working in our business, not just talking in buzzwords like a lot of other people like to do. She's taking messages, making appointments, helping them succeed. I'd love to see how many of our clients are utilizing Mia and having success. Now, let's talk about the third quarter performance. We closed $41.7 billion in production, obviously beating our guidance. It was our best quarter since 2021, back when rates were in the 2.5% to 3% range. We did $25.2 billion of purchase, which is on track to, as we said, is consistently doing about $100 billion of purchase every year. We have been doing that consistently at UWM. And then $16.5 billion in refi, which is up significantly. Like I said, we were able to take advantage of a very small window, a couple-week window in there where we were able to execute and close loans fast. And we're excited to be able to prove that we can not only – we were prepared, but we also executed. Our gain margin was 130 basis points, which is slightly above the gain margin that we provided in guidance. And part of that is, you know, market moves in our direction. We were able to take advantage of that for that couple-week window. Because of this window, you can see when rates drop, our volume goes up quickly, our margin goes up quickly, and we can really take advantage of it. And it's just a three- to four-week window, like I said, not dissimilar to what we saw last September, but we've been more prepared, and we'll take advantage of it in a bigger way this time. Last year, we had a similar three- to four-week window, and the 10-year went to about 375, maybe 3.80, and we had a great month. We did about $17 billion. But we didn't have the success we had this time because we have Mia. This time the rates didn't even get that low. The rates got to about four on the 10-year, and it was about the same short window. Mia has helped us grow the business exponentially, and we're clearly prepared to handle that volume and more. Now, from an income perspective, we did over $12 million in income. That's inclusive of $160 million decline of fair values. But really, the number to focus on is over $211 million of adjusted EBITDA. Once again, a dominant performance from UWM. You've heard me say this on every call. Year after year, our playbook and recipe remain consistent. We will continue to invest in our people, our technology, and dominate this industry with our service and by growing the broker channel. Our operating profile and relentless drive to deliver results provides a consistent message for the investment community. UWM is uniquely positioned to win in any market environment, and we are investing every day to further extend our lead for the benefit of independent mortgage brokers and their consumers.