In This Article:
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Overall Production: $139.4 billion, a 29% increase year over year.
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Net Income: $329.4 million for the full year 2024.
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Gain on Sale Margin: 110 basis points, up from 92 basis points last year.
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Fourth Quarter Production: $38.7 billion.
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Fourth Quarter Net Income: $40.6 million.
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Adjusted EBITDA: $460 million for the full year 2024; $118.2 million for Q4.
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Total Equity: Approximately $2.1 billion at year-end.
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Cash: Just over $500 million at year-end.
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Total Accessible Liquidity: Approximately $2.5 billion at year-end.
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MSR Portfolio Fair Value: Approximately $4 billion.
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2025 Q1 Guidance: Expected production of $28 billion to $35 billion; gain on margin between 90 basis points and 115 basis points.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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UWM Holdings Corp (NYSE:UWMC) achieved a 29% year-over-year growth in production, reaching $139 billion.
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The company retained its position as the largest mortgage company in the US for the third consecutive year.
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UWM Holdings Corp (NYSE:UWMC) tripled its refinance business in 2024 compared to 2023, despite a challenging interest rate environment.
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The broker channel's share of the market increased significantly, with over 16,000 loan officers joining, indicating strong momentum.
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The company maintained strong liquidity and capital positions, with $2.5 billion of total accessible liquidity and a $4 billion MSR portfolio.
Negative Points
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Operating expenses were higher than expected, attributed to ongoing investments in business growth.
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The mortgage market faced one of its toughest years, with 2024 being the lowest home sales year since 1995.
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There is uncertainty regarding the impact of interest rate changes on the company's future performance.
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The company faces increased competition in the broker channel, although it maintains a strong position.
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The interplay between origination and servicing earnings could be affected by potential interest rate fluctuations.
Q & A Highlights
Q: Operating expenses were higher than expected this quarter. Were there any one-time factors, and what should we expect going forward? A: Mat Ishbia, CEO: The higher expenses are due to ongoing investments in our business to dominate the market. These are not one-time expenses but strategic investments to prepare for potential growth. We are ready to double our business without significantly increasing fixed expenses, focusing on long-term gains rather than short-term cost-cutting.