UWM Holdings Corp Files 2023 Annual Report on Form 10-K

Ticker: UWMC · Form: 10-K · Filed: 2024-02-28T00:00:00.000Z

Sentiment: neutral

Topics: UWM Holdings Corp, UWMC, 10-K, Mortgage Banking, Financial Report

TL;DR

<b>UWM Holdings Corp filed its 2023 annual report (10-K) detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

UWM Holdings Corp (UWMC) filed a Annual Report (10-K) with the SEC on February 28, 2024. UWM Holdings Corp filed its 2023 Form 10-K on February 28, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is Mortgage Bankers & Loan Correspondents. UWM Holdings Corp is incorporated in Delaware. The company's headquarters are located in Pontiac, Michigan.

Why It Matters

For investors and stakeholders tracking UWM Holdings Corp, this filing contains several important signals. This 10-K filing provides a comprehensive overview of UWM Holdings Corp's financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors assessing the company's performance and future outlook. As a significant player in the mortgage industry, the details within this filing are important for understanding market trends, regulatory compliance, and the company's competitive positioning.

Risk Assessment

Risk Level: medium — UWM Holdings Corp shows moderate risk based on this filing. The company operates in the highly regulated mortgage industry, facing risks related to interest rate fluctuations, economic downturns, and changes in government policy, as evidenced by the nature of its business as a Mortgage Banker & Loan Correspondent.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand UWM Holdings Corp's performance and potential challenges in the mortgage market.

Key Numbers

Key Players & Entities

FAQ

When did UWM Holdings Corp file this 10-K?

UWM Holdings Corp filed this Annual Report (10-K) with the SEC on February 28, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by UWM Holdings Corp (UWMC).

Where can I read the original 10-K filing from UWM Holdings Corp?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by UWM Holdings Corp.

What are the key takeaways from UWM Holdings Corp's 10-K?

UWM Holdings Corp filed this 10-K on February 28, 2024. Key takeaways: UWM Holdings Corp filed its 2023 Form 10-K on February 28, 2024.. The filing covers the fiscal year ending December 31, 2023.. The company's principal business is Mortgage Bankers & Loan Correspondents..

Is UWM Holdings Corp a risky investment based on this filing?

Based on this 10-K, UWM Holdings Corp presents a moderate-risk profile. The company operates in the highly regulated mortgage industry, facing risks related to interest rate fluctuations, economic downturns, and changes in government policy, as evidenced by the nature of its business as a Mortgage Banker & Loan Correspondent.

What should investors do after reading UWM Holdings Corp's 10-K?

Investors should review the detailed financial statements and risk factors in the 10-K to understand UWM Holdings Corp's performance and potential challenges in the mortgage market. The overall sentiment from this filing is neutral.

Risk Factors

Key Dates

Filing Stats: 4,551 words · 18 min read · ~15 pages · Grade level 17.9 · Accepted 2024-02-28 11:36:19

Key Financial Figures

Filing Documents

Business

Item 1. Business 4

Risk Factors

Item 1A. Risk Factors 11

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 36 I tem 1C. C ybersecurity 36

Properties

Item 2. Properties 37

Legal Proceedings

Item 3. Legal Proceedings 38

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 38 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 39

Reserved

Item 6. Reserved 40

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 40

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 58

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 60

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 90

Controls and Procedures

Item 9A. Controls and Procedures 90

Other Information

Item 9B. Other Information 90

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 90 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 90

Executive Compensation

Item 11. Executive Compensation 91

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 91

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 91

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 91 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 93

Form 10-K Summary

Item 16. Form 10-K Summary 97

Signatures

Signatures 98 Table of Contents GLOSSARY OF TERMS Terms Definitions "Fannie Mae" The Federal National Mortgage Association is a government-sponsored enterprise that purchases qualifying mortgage loans from mortgage lenders, packages them together, and sells them as a mortgage-backed security to investors on the secondary market. "FHA" The Federal Housing Administration is a governmental agency that provides mortgage insurance on loans made by FHA-approved lenders. "Forward-settling Loan Sale Commitment" or "FLSC" or "TBA" A forward-settling Loan Sale Commitment (also referred to as a FLSC or a TBA) is a forward derivative that requires a mortgage lender to commit to deliver at a specific future date a mortgage-backed security issued by Fannie Mae, Freddie Mac or guaranteed by Ginnie Mae which is collateralized by an undesignated pool of mortgage loans. "Freddie Mac" The Federal Home Loan Mortgage Corporation is a government-sponsored enterprise that purchases qualifying mortgage loans from mortgage lenders, packages them together, and sells them as a mortgage-backed security to investors on the secondary market. "Ginnie Mae" Government National Mortgage Association is a government-owned corporation that guarantees mortgage-backed securities that have been guaranteed by a government agency, mainly the Federal Housing Administration and the Veterans Administration. "GSE" Government-sponsored enterprises, such as Fannie Mae and Freddie Mac. "interest rate lock commitment" or "IRLC" An interest rate lock commitment is a binding agreement by a mortgage lender with a borrower to extend a mortgage loan at a specified interest rate and term within a specified period of time. "loan officers" We use the term loan officers to refer to the individual employees of our clients. Each loan officer is licensed, or exempt from licensure, in the state or states in which he or she operates. "mortgage-backed security" or "MBS" Mortgage-backed securitie

Business

Item 1. Business Unless otherwise indicated or the context otherwise requires, when used in this Annual Report, the term "UWMC" means UWM Holdings Corporation, "UWM" means United Wholesale Mortgage, LLC and the "Company," "we," "our" and "us" refer to UWM Holdings Corporation and our subsidiaries. Overview We are the publicly traded indirect parent of United Wholesale Mortgage, LLC ("UWM"). UWM is the largest overall residential mortgage lender as well as the largest purchase lender in the U.S., by closed loan volume, despite originating loans exclusively through the wholesale channel. We originate primarily conforming and government loans across all 50 states and the District of Columbia. Founded in 1986 and headquartered in Pontiac, Michigan, we have built a client-focused, team-oriented culture that strives to bring superior customer service, efficiency and operational stability to our clients, the Independent Mortgage Brokers. UWM completed its business combination with Gores Holdings IV, Inc. ("Gores IV") on January 21, 2021, pursuant to which UWM became an indirect subsidiary of Gores IV. Upon consummation of the business combination, Gores IV changed its name to UWM Holdings Corporation. We began trading on the New York Stock Exchange ("NYSE") on January 22, 2021 under the ticker symbol UWMC. Strategy Our principal strategy that has driven our substantial growth over the past years, is our strategic decision to operate solely as a Wholesale Mortgage Lender—thereby avoiding conflict with our partners, the Independent Mortgage Brokers and their direct relationship with borrowers. Unlike "Retail Mortgage Lenders" that both offer mortgage loans directly to individual borrowers and underwrite the mortgage loans, we do not work directly with the borrower during the mortgage loan financing process. We believe that by not competing for the borrower connection and relationship, we are able to generate significantly higher loyalty and satisfaction from our

Underwriting

Underwriting Our underwriting process is one of our key strategic advantages as our extensive training program and technology platforms allow us to produce a portfolio of high-quality loans, with an industry-leading time from application to clear to close and maintain the superior level of client service that allows us to attract and retain our clients. All mortgage loans that we originate are underwritten in-house by our underwriting team. We invest significant time and resources in our underwriters through our robust training process to help them and us succeed. We believe that our intensive training program is an integral component of our scalability as we are able to materially increase our underwriting resources, at a consistent quality, with less labor constraints and complications than our competitors. Our clients, the Independent Mortgage Brokers, have the initial communication with a potential borrower and they receive from the borrower the relevant financial and property information to run a credit check and obtain a pre-approval through one of the automated underwriting systems. Once a pre-approval has been received, an Independent Mortgage Broker is able to seamlessly import the borrower's information and documentation into our EASE TM LOS without the need for extra data entry. One of our underwriters then reviews the file and, based on the loan product and the financial and other information provided, makes an underwriting decision. If the mortgage loan is approved, our system generates a "conditions to close" list based on the specifics of the borrower, the property and the loan product and an underwriter generally takes ownership of the file ensuring that each of these conditions is met prior to granting a "clear-to-close." In 2023, we launched PA+ which is a service that offers an additional level of loan processing support for our clients when needed. When an Independent Mortgage Broker or their loan processor uses PA+, a dedicated UWM Loan Co

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