United Wholesale Mortgage CEO Talks IPO Plans, Lending Technology And Brokers

On the heels of a record year, Pontiac, Michigan-based United Wholesale Mortgage announced this week it will merge with special purpose acquisition company Gores Holdings IV Inc GHIV in a deal that would value the firm at $16.1 billion.

The combined company will list on the Nasdaq under the ticker "UWMC," with the IPO proceeds being used to capitalize on emerging opportunities in the mortgage industry.

Benzinga chatted with CEO Mat Ishbia to learn more about how the IPO will advance United's consumer-focused strategy.

See Also: United Wholesale Mortgage Takes SPAC Route To Go Public

Investing In Further Upside: After almost a year of consideration, the company decided to merge with the Gores Holdings IV SPAC, a blank check company that raises money through public markets only to buy or merge with other companies.

The deal would provide United with up to $925 million for the execution of emerging growth opportunities.

The reasons United is going public are technology innovation, notoriety for brokers, consumer education and increased ownership, Ishbia told Benzinga. 

Another deciding factor in the IPO was allowing all employees to become owners who share in the company’s exponential growth, Ishbia said. 

“We’re so excited that all 6,800 people here are now owners and will be owners when we close, so we can win and share in that upside, together,” he said.

Mat Ishbia. Courtesy photo.

Founded in 1986, United is a family-owned mortgage lending company.

An innovation-driven CEO who once played and coached with Michigan State Basketball coach Tom Izzo, Ishbia took control of United from his father in 2003. Since then, he’s added over 6,800 team members and turned UWM into the second-largest lender in the country, underwriting nearly $200 billion in mortgages this year.

Ishbia On The Future Of Mortgages: Despite the low rate environment, Ishbia said much of United's growth is attributable to its established broker network and purchase-focused business.

“With the pandemic and lower rates, we may go [from] $180 to $190 billion,” Ishbia said of the firm’s underwriting activity. “Right now we’ve got 7% market share, and so we’re excited to help more consumers than ever.”

It's a hot market, and the economy depends on housing finance. 

"We're already a leader in technology," Ishbia said, "and we're going to roll out some really big things between now and the end of the year, early next year."