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LeSean McCoy, property magnate; UWM update; MBA goes live! 😍

By April 21, 2021 No Comments

LeSean McCoy amasses real estate empire during football career

Just months after getting his second Super Bowl ring, as Tampa Bay Bucs running back LeSean McCoy is using the offseason downtime to finish real estate developments. 

McCoy and his brother LeRon operate real estate firm Vice Capital. With McCoy’s playing days almost over, he’s using the real estate investment route to continue building wealth post-NFL.

The brothers currently own around 60 distressed properties in lower-income communities — some under Vice, some not — renovating buildings to create new housing units and commercial space.

How do they do it?

The McCoy brothers use opportunity zones to develop some properties. The areas were created as part of the federal Tax Cuts and Jobs Act of 2017 and provide developers capital gains tax incentives. They’re designed to direct investment to under-developed sections of cities and help increase neighborhood values without triggering a rise in rent that would drive residents out of the rebuilt communities.

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Investor: United Wholesale Mortgage “is doing just fine”

United Wholesale Mortgage stock at one point was worth nearly $14 at its highest point (It IPO’ed at around $10) but is now slipping, slipping, slipping down to well below $8 for some time.

Have investors changed their minds about investing in the nation’s largest wholesaler? Well, yes and no.

“As far as I can tell, UWM Holdings is doing just fine,” said David Moadel, InvestorPlace Contributor. “The most recently released financial data on the company comes from UWM Holdings’ report on its fourth-quarter and full-year-2020 results, which were quite impressive.”

Here’s a quick recap of the Q4 data:

  • Originations of $54.7 billion in loan volume, up 71% year-over-year and a quarterly record for the company

  • Total gain margin of 305 basis points (bps), easily beating the 110 bps recorded during Q4 2019

  • Net income of $1.37 billion, a huge improvement over the $148.9 million in net income posted during Q4 2019

“With all of that positive data in mind, it’s tough to make sense of the persistently low price in UWM Holdings shares,” Moadel said. “It’s not as if the housing market’s failing.” 

So what’s behind the dip? Granted the market is currently in a bit of a funk.

It’s not the war with Rocket over broker exclusivity, either, as that represents only a fraction of UWM’s business. Instead, it has to do with the fact the UWM used a special purpose acquisition company to take it public.

“It’s possible that the market’s love affair with SPACs is fading,” Moadel concludes. “Trends come and go, and perhaps the market is unfairly punishing UWM Holdings, which, after all, was hyped as being part of the biggest SPAC deal ever.”

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MBA CEO: MBA annual will definitely be large and in charge!!!

Raise your hand if you are SICK of virtual events! OK, well, you are not alone, if your hand is up!

MBA President and CEO Bob Broeksmit yesterday told the virtual audience at the Spring Conference & Expo 2021: Independent Mortgage Banks, Secondary Markets, Servicing and Technology, that event such as the one he was speaking at, simply isn’t his preference.

“If you’re like me, you’re probably tired of virtual events,” he said. “There’s no hobnobbing, no happy hours, no deal-making in the hallways. While the content is still world-class, it’s just not the same as an in-person conference.”

“Well, don’t worry. I have some good news,” he added. “I’m pleased to announce that we are planning to hold MBA’s Annual Convention in October… in-person.”

Broeksmit reported that lobbying efforts by the MBA on behalf of its lender/servicer members continue to gain traction under the current administration. 

However, he admits, there have been some setbacks.

“The CFPB may reverse some recent policies that we supported. It has already proposed to delay the implementation of the QM Patch. Frankly, I’m disappointed. I know you are, too. The final regulation reflected MBA’s input, and would have benefitted your companies and customers. I said as much to the Acting Director when I spoke with him in February,” he said, adding a hint of hope at the end.

“Given this about-face, we are re-activating the coalition that backed reform,” Broeksmit said. “Industry, consumer, and civil rights groups supported the final rule, and they want to see it put in place. We have not come this far on the QM Patch only to fall short.”

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