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Brokers@War (again); Quicken CEO loses billion$$$; WFH fallout 😱

By March 4, 2021 No Comments

This is not the first time United Wholesale declared war on Quicken!

Yesterday the CEO of United Wholesale Mortgage, Mat Ishbia, dramatically raised the stakes Thursday of his company's competition with Detroit-based Quicken Loans, telling mortgage brokers that they must choose between the two firms. It’s not the first time a war has kicked off between these armies.

Ishbia said he is giving brokers until March 15 to sign an agreement pledging to stop working with Rocket or Fairway. Those

who continue working with those two competitors can no longer work with UWM.

In a Facebook Live presentation Ishbia claimed that Rocket Companies and Fairway Independent Mortgage are engaging in behaviors that, in his view, inhibit mortgage brokers from growing their share of the overall business.

While he stops short of calling these activities illegal, Ishbia said that the other two lenders pay real estate agents to cut out other brokers and, of course, still refi business from broker clients. 

He added, “So here is the question, Are you all in?.. Or are you out?”

Three years ago, United Wholesale workers were accused of handing out flyers to Quicken retail bankers claiming Quicken offers lower consumer mortgage rates and higher pay potential to outside mortgage brokers than it does for its own in-house loan officers, which Quicken calls mortgage bankers.

If memory serves, Ishbia said he did not direct his employees to do this, but also said the information on the flyers was correct. #BrokerWar


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Meanwhile, Quicken CEO made $30 billion and then lost $25 billion

Shares of Rocket Companies, where Dan Gilbert is the majority shareholder, jumped more than 70% on Tuesday, adding $17.30 per share. Gilbert owns roughly 1.9 billion shares of Rocket, putting his paper gain on the stock at more than $32 billion.

This made Gilbert the tenth richest person in the world. This is a title, however, he no longer holds.

The stock was one of the most heavily shorted names in the U.S. prior to its spike, which meant that its rapid rise could be a temporary jump caused by a short squeeze. The company has also been the focus of chatter among traders on Reddit, similar to stocks like GameStop and AMC Entertainment that saw dramatic jumps and declines earlier this year.

[RELATED: REconomy Podcast: What does the GameStop frenzy and innovation in mortgage finance have in comm

on?]

However, Gilbert’s gains unraveled as frenzied trading subsided. 

As of today, he lost $25 billion on the trading. So, doing the math, Gilbert was worth $57.3 billion, as of Wednesday’s market close, making him the 21st richest person in the world.

It’s quite the fall, but we think Gilbert is going to be just fine.


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🔥 Mortgage Rates Going Up? 🔥 

With Caton Del Caton


WFH fallout: We feel closer to our bosses but not our coworkers

The good news is extended WFH due to COVID has made most Americans feel a closer connection to their bosses, according to a new report.

The bad news is a high number of people feel a lower level of connection with their peers at work.

The new data is from Dov Seidman of the HOW Institute of Leadership, who surveyed 1000 U.S.-based professionals who moved to remote work during the pandemic.

According to the write up in Fortune by Alan Murray:

“More sharing of personal updates and feelings during check-ins helped strengthen the sense of connection, the study found, Murray said. “Seidman says that sort of personal sharing is part of a tool box of behaviors that he describes as moral leadership.” 

Other behaviors in the tool box include cultivating a sensing of hope for the future, working to inspire others, showing patience and flexibility, encouraging teammates to share their concerns and fears, explaining decisions in the context of purpose, and demonstrating a commitment to do the right thing. 

His research found that employees at organizations whose leaders demonstrated those values were three times more likely to feel “connected” to their manager and their organization.


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