UWM Holdings Corporation (NYSE:UWMC) Q3 2023 Earnings Call Transcript

Operator: Your next question comes from the line of Mikhail Goberman from JMP Securities.

Mikhail Goberman: Just kind of a hypothetical scenario question from my end here. And definitely, hopefully, the scenario won’t come to pass, but if we do get some sort of a consumer recession in the, let’s say, middle part of next year, how do you guys see that affecting the industry competitively? And more specifically for United Wholesale, how do you guys see that affecting the company operationally, financially, in terms of volumes, margins and the MSR book?

Mathew Ishbia : Yes. So obviously, in almost throughout history, and you can track this and check the data, recessions usually are led out of recessions with lower interest rates with the mortgage market has been really successful. So if there was a recession, I actually would argue that it’s actually going to be really good for our business because they’ll will lower rates. And then lower rates mean a lot of refi activity, even more purchases, more people will sell their houses, more opportunity. And so there’s really no negative to that if that happens. I think what you’ve seen in the last 2 years is the worst it can be for mortgage lenders. And a lot of mortgage lenders have gone out of business. A lot of them lose money all the time.

A lot of them have laid off a bunch of people. And we are the strongest mortgage company in the country. And we’ve made a lot of money, obviously, but we also are hiring. We’re prepared for the next opportunity. And so when that opportunity comes, whether it’s because of a recession or because the Fed lowers rates or because of inflation or because of some war or whatever may happen, when rates do drop, other lenders will do really well. But we’ve all seen now a glimpse into the future of what lenders are the best in these markets. And so whether a recession or whatever happens, we’ll be prepared for the lower rate. And in the meantime, we’ll continue to win and to be successful as you’ve seen quarter after quarter going forward. So we appreciate it.

Thank you for the question.

Operator: That will wrap up the Q&A portion. I would like to turn the call back over to Mat Ishbia for some closing remarks.

Mathew Ishbia : Thank you for the time today. We appreciate you all being on the call, and look forward to another great quarter in the fourth quarter, and we’ll talk to you guys soon. Have a great day. Thank you.

Operator: This concludes today’s conference call. You may now disconnect.