In the video verified by HousingWire, Beydoun stated that the 100 or so brokers had a “negative impact” on prepayment speeds in the wholesale channel by refinancing “three to five times faster than the overall market.” He called it “churning” and stated that UWM found that it was a combination of higher individual compensation plans that made loans free of charge or that could have a higher interest rate to allow the borrower to refinance later. Before Beydoun`s video circulated – and boosted some test exchanges on facebook groups of private mortgage brokers – UWM was not known to aggressively impose OVS, several brokers who are not related to the deal told HousingWire. But in the spring, according to the complaint, UWM informed about 100 brokers in California that they were “modifying their contracts retroactively, so borrowers would be required to hold their credits for 365 days, otherwise brokers would have to return their commissions.” UWM changed its policy this month, so that brokers could not repay UWM loans less than 365 days without the commission or 1% of the mortgage (depending on the highest value). “UWM partners with more than 11,000 independent mortgage brokers at the federal level and accusations made by a couple broker are vigorously defended because they have no value,” the UWM statement said. “UWM is a major lender with more than 34% market share for six consecutive years. The company has always and will always act in the best interests of borrowers, brokers and the entire chain of brokers. While each of the brokers who bring the complaint have their business in California, the complaint says that other members of the class action are “so numerous and geographically dispersed” that the designation of all would be impractical. Mat Ishbia, President and CEO of UWM, said: “This is our best quarter in 34 years of business, which shows that borrowers recognize that independent mortgage brokers offer better interest rates, higher speeds and deeper experience. I am grateful to the more than 6,800 team members whose commitment to superior service, as well as our proprietary and industry-leading technology, supports the success of our broker clients by enabling them to offer a first-class borrower experience. This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements refer to expectations regarding future financial performance, business strategies or expectations regarding UWM`s operations and the activities of the post-combination business, including UWM`s plans to expand the broker chain and become the market leader in mortgages. These forward-looking statements are based on the current expectations, estimates, forecasts and beliefs of UWM management, as well as a series of assumptions about future events.
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