What is the mortgage match? And why did UWM create it? Loaner

If you have recently seen advertisements for “Mortgage Matchup”, perhaps during a NBA match, or on the field itself, you may be wondering what it is.

It is actually an interesting question and answer because it is a company that does not work directly with the public.

However, they advertise directly to consumers all the time, which is not a very common arrangement.

They also belong to the largest mortgage lender in the United States, a company known as UWM.

Fortunately, I can fully explain how their business works so that you can give meaning to all of this.

The mortgage match is an online mortgage broker directory belonging to Uwm

• A directory of online mortgage broker belonging to a big UWM lender (Nation’s # 1 Lender)
• Allows users to find a local independent broker with which to work to obtain a mortgage
• A broker is required to request a loan with UWM (cannot apply directly)
• The website also promotes the commercial model of the mortgage broker compared to retail / direct
• The mortgage match is the official mortgage partner of the NBA and the WNBA

In a word, the mortgage match is an online repertoire powered by UWM which allows you to find and associate yourself with a local mortgage broker in order to request a mortgage.

Once you arrive on this website, there is a field to enter your address to “find your local expert on the mortgage”.

But what is strange is that some of these experts may not even work with Uwm, who pays and keeps the website. I’m going to talk more about it in a moment.

First of all, let’s talk about mortgage brokers and wholesale lenders.

The big difference between a direct lender and UWM is that the latter is based on mortgage brokers, who are third -party loan creators.

The brokers do not represent a lender, but rather have several lender partners where they can send your loan.

A mortgage broker acts an intermediary between house buyers (or owners) and lenders.

Their work is similar to a loan agent working in a bank, but they are not captive in a single bank.

They have the possibility of buying your loan with all their partners, then choosing the one who, according to them, is best suited.

This could be due to the best prices, the lowest mortgage rate, a single loan program and / or the lender’s ability to conclude the loan in time (or not at all!).

A good analogy is an independent insurance agent, which represents several insurers, not just a company.

These agents can buy your price with 10 different insurers to find the lowest rate and the best coverage.

Meanwhile, a captive agent who works for Say State Farm can only sell you a policy of State Farm. That’s it.

The brokers therefore have more choice and the possibility of shopping on your behalf, without you having to lift your finger.

Who is UWM? And why did they create a mortgage match?

Let us now return to the owner of the mortgage match. As indicated, it belongs to Uwm, which is the abbreviation of United Wholesale Mortgage.

As its name suggests, they are a wholesale mortgage (based in Pontiac, Michigan), which means that they are not oriented towards consumers.

So you can’t go to Uwm and request a mortgage directly. If you have tried, they would tell you to find a mortgage broker who is approved to work with UWM.

Although it may seem strange, it’s just the reality of the wholesale loan chain.

Unlike retail or direct sales loans to consumers, the canal in wholesale is B2B, it is therefore only accessible via an intermediary, namely a mortgage broker.

The UWM is also found to be the largest mortgage lender in the country by the loan volume, beating its nearest rhythm rocket engine.

However, unlike Rocket, they do no retail or DTC loan. It is only roughly, which is actually quite remarkable since they are n ° 1 in the country.

But in order to stimulate more business, they launched a mortgage match to extend their range without entering the retail channel directly.

In other words, a consumer can go to the mortgage match websiteFind a broker to work with, then ask for a loan from Uwm.

But only if the broker recommends sending the loan to Uwm. Brokers can have a dozen lender partners or more and can choose another wholesale lender.

There is therefore no guarantee that UWM will be the beneficiary, even if they are those who pay for the website and advertising (which cannot be cheap).

However, UWM is probably hoping to get a decent piece of this mortgage broker business to do this.

Just note that a list of brokers on the MATTEGUP MATCEGUG website does not constitute an approval or a recommendation from the UWM.

UWM promotes mortgage brokers via the mortgage brand

In simple terms, UWM promotes mortgage brokers via this website and indirectly their own business.

They plead for the Grosse Canal and encourage consumers to obtain a mortgage via a broker instead of going directly.

There are many advantages to using a broker, namely their ability to buy your loan with several lenders.

This could save money, the Match -Patchup website citing a study that has revealed that work with a broker can save you $ 10,662 on average.

Although your mileage can vary, which is why I always say to also compare mortgage brokers, these independent loan creators also have access to more loan programs.

And they also tend to be more competent than captive bank loan agents, who may have less experience due to a limited exposure to external scenarios.

You can find out more about Banks VS Mortgage Brokers for a in -depth comparison.

Note: In mid-January 2024, UWM renamed the old Findamortgagebroker.com website in a mortgage match, perhaps to make it more attractive for consumers who found the broker confusing.

Why does UWM not just enter into retail mortgage?

All this raises the question, if UWM is the country’s mortgage n ° 1, and that they are already advertising to the public, why does it not just enter the retail?

Couldn’t they do much more loans if customers could apply directly, while retaining their existing business?

After all, they have a website, a mortgage match and their scope to acquire many cases directly from consumers.

And they are already paying for advertising. So why not? Well, it’s not entirely clear because we don’t know what Uwm thinks.

But if I had to guess, I would say that wholesale management allowed them to save money on operational costs, the general costs of employees, etc.

Because they have a lot of independent partners with whom they work, they can save money, even if these partners do not send them all loans.

They don’t have to pay them wages or services, and they don’t need additional office space.

However, if they continue to provide these partners with useful tools to facilitate their work, while offering competitive prices, they can potentially make the most of the two worlds.

And so far, it seems to work because as I said, they are the best mortgage lender in the country and do not seem to give up this position as soon as it is.

(photo: Bernd Eckenfels))