One of the most contentious issues of the Brokerage Brawl debate at Originator Connect centered on United Wholesale Mortgage\u2019s (UWM) ultimatum that brokers could choose to partner with either UWM or Rocket Pro TPO (and Fairway Independent Mortgage), but not both. The two wholesale lenders dominate the broker channel, offering some of the best pricing, products, technology, and programs for their broker partners. Partnering with one or the other could affect originators\u2019 decision to join a certain brokerage.<\/p>\n
While every contender in the brawl agreed it would be ideal to be able to do business with both Rocket Pro TPO and UWM, that\u2019s simply not an option anymore. Every broker owner had to make the best possible decision for their business. However, a bold proposal put forth by Daniel Iskander, CEO of West Capital Lending, and Thuan Nguyen, CEO of Loan factory, could potentially make that option a reality once again.<\/p>\n
The Ultimate Decision<\/strong><\/p>\n Pablo Martinez of Equity Smart Home Loans, like a few of his fellow contenders, was partnered with Rocket Pro TPO and UWM prior to the ultimatum, but ended up going with UWM. Although he portrayed UWM\u2019s ultimatum as being anti-competitive and negative for the broker community, he did decide to choose them over Rocket Pro TPO.<\/p>\n \u201cOur wholesale lenders shouldn’t have too much power over us to dictate what we can and can\u2019t say and do,\u201d Martinez said. \u201cBut it\u2019s our job to provide our loan officers with the best tools, resources, and lenders that are available out there. And then let the loan officer decide which lender is best for their borrower.\u201d<\/p>\n In a follow up interview, Martinez added, \u201cThey\u2019re a great partner. Do I agree with everything they do? No.\u201d<\/p>\n The rest of the contenders seemed to strongly believe that one wholesaler or the other is wrong in how they do business, which motivated their decision.<\/p>\n One such contender is Iskander of West Capital Lending. At the time the ultimatum came out, Iskander was working as a vice president for E Mortgage Capital under his CEO Joseph Shalaby, who is now his competitor. Iskander sent most of his loans to both UWM and Rocket, but after Shalaby decided to go with UWM when the ultimatum was issued, and he left. Despite the fact he would be leaving a job that he \u201cloved working for,\u201d he could not side with a lender that would limit broker options. He then went on to start his own brokerage, West Capital Lending.<\/p>\n \u201cWhen the ultimatum came out in 2021 that was a deal breaker for me,\u201d Iskander said. \u201cIf you lose that ability to choose it\u2019s an entire danger to the whole broker community.\u201d<\/p>\n Nguyen of Loan Factory, likewise, chose Rocket Pro TPO and said that UWM does not support broker choice.<\/p>\n \u201cThey are anti-boker model,\u201d Nguyen said. \u201cAnd they always say brokers are better. Whoever says one thing and does the other thing, you shouldn\u2019t work with them.\u201d<\/p>\n Mike Kortas of NEXA and Shalaby of E Mortgage Capital justified their decision to choose UWM by claiming Rocket\u2019s retail division is valued over its wholesale division and is a direct competitor to its broker partners.<\/p>\n \u201cIf I\u2019m going to have to choose,\u201d Kortas said, \u201cI\u2019m going to choose the one that does not compete against me.\u201d<\/p>\n Shalaby alleged that, in the past, his originators would lose clients after sending in loans to Rocket\u2019s wholesale division. Rocket\u2019s retail division would retain E Mortgage Capital’s customers for future transactions, causing borrower retention at his brokerage to \u201cplummet,\u201d Shalaby claimed.<\/p>\n