The CEO of United Wholesale Mortgage on Wednesday defended a recent controversial move in a crossover fight with rival Quicken Loans.
UWM earlier this month said it would no longer work with mortgage brokers who have done business with Quicken and another competitor, Fairway Independent Mortgage in Wisconsin.
“I know how many different people want to describe it, but the decision was not to do things exclusively,” CEO Matt Ishbia told CNBC’s “Mad Money.”
Ishbia told show host Jim Cramer that the Pontiac, Michigan-based company gained an ultimatum: Of the 12,000 brokers, not even 500, they chose to continue their partnership with Quicken, he said.
Quicken, the loan giant in Detroit, owned by Rocket Companies, is the largest mortgage lender in the country, followed by UWM.
Ishbia claims that Quicken Loans is increasing growth in the mortgage sector, although he said he does not accuse the company of illegal practices.
“The reality is that brokers are all there,” Ishbia said. “I understand that Matt and UWM are here to protect the broker channel and consumers, because consumers get lower rates when they go through a broker. That’s not an opinion, it’s a fact.”
Meanwhile, Rocket tells him Wall Street Journal that its lending platform has increased its market share since UWM announced the move. Fairway, in turn, said National mortgage news that UWM’s agreement with brokers limits their ability to find lower interest rates.