The chief executive of United Wholesale Mortgage defended a recent controversial move in a battle between the city with rival Quicken Loans on Wednesday.
UWM earlier this month said it would no longer work with any mortgage broker that also did business with Quicken and another competitor, Fairway Independent Mortgage in Wisconsin.
“I know how different people want to portray it, but the decision was not about doing things exclusively,” CEO Matt Ishbia said in an appearance on CNBC’s “Mad Money.”
Ishbia told the show’s host Jim Cramer that the Pontiac, Michigan-based company gained the upper hand in the ultimatum: Out of 12,000 runners, not even 500, they chose to continue partnering with Quicken, he said.
Quicken, the Detroit-based loan giant owned by Rocket Companies, is the nation’s top mortgage lender, followed by UWM.
Ishbia says Quicken Loans is slowing the growth of the mortgage industry, although it said it does not accuse the company of illegal practices.
“The reality is that the runners agree,” Ishbia said. “They understand that Matt and UWM are here to protect the broker channel and consumers because consumers get lower rates when they go through a broker. That is not an opinion, it is a fact.”
Meanwhile, Rocket tells the Wall street journal that its lending platform has increased its market share since UWM announced the move. Fairway, for his part, said National mortgage news that UWM’s deal with brokers limits its chance of finding lower interest rates.