UWM Holdings Corporation Q3 FY2025 earnings call

• Over the past 3+ years, UWM navigated the higher rate environment by investing in people, technology, and the broker channel. • In September, UWM had an all-time record lock day with $4.8 billion of locks in one day. • Mia, the generative AI loan officer assistant, made over 400,000 calls on behalf of mortgage brokers, with over 14,000 closings from rate watch calls. • Q3 production of $41.7 billion was the best since 2021, with a gain margin of 130 basis points above guidance. • UWM is investing in bringing servicing in-house, has a partnership with Bilt offering benefits to brokers, and is excited about the mortgage matchup center sponsorship in Phoenix.

In the third quarter, UWM closed $41.7 billion of production, which was its best quarter since 2021. Purchase volume was $25.2 billion, and refi volume was $16.5 billion. The gain margin was 130 basis points, slightly above guidance. Purchase contributed approximately 60.4% ($25.2 billion / $41.7 billion) of the production, while refi contributed around 39.6% ($16.5 billion / $41.7 billion).

• Fourth quarter production is expected to be between $43 billion and $50 billion. • Gain margin guidance is raised to 105% to 130%.

Q: Follow up on the effort to bring servicing in-house and the Bilt partnership.

A: Mathew Ishbia said servicing will be best-in-class, Bilt partnership brings leads from Bilt renters converting to purchase.

Q: Gain margin and refi vs purchase.

A: Margin is driven by rate dips, purchase is consistent, refi has upside.

Q: Volume and margin trends in October.

A: Aligned with guidance, short month but still strong.

Q: Servicing in-house timeline.

A: All new loans in 2026 stay in-house, transition existing loans over time.

Q: Incremental costs for volume ramp.

A: Fixed costs manageable, investments continue but variable costs for commissions.

Q: Hedging strategy.

A: Doesn't focus on MSR hedging, core business not affected by MSR value.

Q: Technology impact on refi.

A: AI reduces friction, more refis expected but industry still has friction.