HousingWire Daily James Kleimann on UWM’s decision to bring servicing in-house
May 1, 2025
In this engaging discussion, James Kleimann, the Managing Editor at HousingWire, delves into UWM's strategic move to bring mortgage servicing in-house, highlighting potential advantages for brokers. He explores how this decision could enhance customer relations and marketing efforts while addressing shifting servicer rates. The conversation also touches on the emerging trends in appraisals driven by AI and data analytics, as well as the significant challenges smaller lenders face in a competitive market, emphasizing the need for consolidation.
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UWM's Servicing Strategy Shift
- Bringing servicing in-house helps UWM protect its space and better support brokers by retaining loans instead of selling servicing rights.
- This strategy improves borrower relationships and marketing momentum for mortgage brokers affiliated with UWM.
Benefits for Brokers with In-House Servicing
- Retaining servicing in-house gives brokers more certainty and control over borrower communications and scripts.
- Competing servicers like PennyMac excel at aggressive borrower engagement and recapture, which UWM can counter by servicing their own loans.
Scale Drives Mortgage Profitability
- The mortgage lending industry is highly competitive with many lenders unable to sustain profitability.
- Scale is essential for profitability; big lenders like UWM remain efficient with lower cost per loan than smaller competitors.