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UWM predicts broker boom! Big bank profits; 10 million new jobs! 😍

By March 17, 2021 No Comments

UWM CEO Mat Ishibia will NOT stop hiring, predicts 2021 will be EVEN BIGGER

United Wholesale Mortgage leader Mat Ishbia never shies away from a challenge. 

For example, he recently threw down the gauntlet and said that mortgage brokers can either work with them OR Quicken Loans, not both.

And to give an idea of how assertive he can be, a few brokers even told The Detroit News they expect Ishbia will back off his claim that you can’t work with both, Ishbia's response is classic Ishbia: “Zero percent chance. This is not an option or idea. This is a business philosophy. We're doing the right thing.”

Ishbia is also equally assertive about his bullishness to what his firm can achieve in 2021 in the recent Inside Real Estate podcast

 (60 minutes long, wow).

Around the 28-minute mark, he talks about his 2021 projections for UWM: “We’re going to keep hiring, we’re never going to stop hiring, we believe the demand for mortgage brokers is only going to go up,” he said.

“We’re going to keep growing it and building it… the way we think about it, we’re going to have our best year in company history. Last year was our best year ever, this year 2021 will be even bigger.”

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Big banks are absolutely raking in the dough, too!

UPDATE: Many bank customers continue to be upset to learn that their banks were delaying their stimulus payment, as reported in Rise&Shred yesterday. In fact, it is the Treasury that is paying in phases, if your check didn’t come by today, check the status securely by clicking here.

But we won’t share much sympathy for the big banks. U.S. banks still had $236.6 billion in total reserves in December, according to the Federal Deposit Insurance Corp. — nearly double their level before the coronavirus crisis.

In fourth-quarter earnings reports from J.P. Morgan Chase, Citigroup and Wells Fargo, the results showed that the pandemic’s impact on the banks was not as bad as had been feared in the disastrous days of March 2020.

This means that U.S. banks are sitting on a pile of cash that could turn into billions of dollars of profits.

In the coming months, banks are expected to free up tens of billions of dollars in reserves they set aside to cover soured loans—losses that still haven’t materialized a year into a pandemic that shut down swaths of the U.S. economy.

And the Gravy Train will keep chugging along, according to the Wall Street Journal (metered paywall). Analysts now expect the four banks to earn $77 billion in 2021, up from $61 billion last year.

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With Josh Pitts

Zandi predicts relief will add 10 million jobs in the next two years 

As the federal payments continue to get underway, the president is often heard quoting an analysis by Wall Street’s firm, Moody’s, that shows the rescue will probably create 7.5 million jobs this year alone. And another 2.5 next year, bringing the US economy back to full employment.

“You could start a drinking game based on the number of times that President Biden cites a report issued by Moody’s on the economic impact of his $1.9 trillion coronavirus relief package,” writes the fact-checkers at the Washington Post (metered paywall).

Moody’s economist Mark Zandi, the chief author of the report, stands by his numbers — even though they’ve changed slightly from the time he published it, in January, to today, now that the actual stimulus passed.

“All of this assumes the U.S. effectively achieves herd immunity by no later than July 4,” Zandi tells WaPo, “and that during the coming year there is no other additional deficit-financed fiscal support, and the Fed doesn’t change its quantitative easing or zero

 interest rate policies.”

Either way, overall, the long-term prospects are very positive.

“The next few months will be difficult, but the next few years look increasingly bright,” the report states. “The raging pandemic will fade by mid-2021 once a majority of Americans are vaccinated, and the economy will quickly get back on track thanks in significant part to robust fiscal and monetary policy support.”

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