“The company has a dominant position within the wholesale channel with a market share of 43%, and was the nation’s largest mortgage originator in 9M24 and FY23,” Fitch said in a note, citing data from Inside Mortgage Finance.
“The positive outlook reflects the significant strengthening of UWM’s franchise over the last several years, which should increase the durability of its business model through market cycles. It also reflects improvements to the company’s funding profile and liquidity resources.”
Fitch also pointed to several risks that constrain UWM’s rating, including the cyclical nature of mortgage origination and the company’s reliance on secured, short-term, uncommitted funding. UWM’s exclusive focus on the wholesale mortgage channel limits its potential to capture a larger share of the overall mortgage market.
The report also said president and CEO Mat Ishbia is an “elevated key person risk”.
Fitch noted that changes in leadership or reduced involvement by the Ishbia family could negatively impact UWM’s growth trajectory and operating performance.