KBW Keeps $4.50 Target on UWM as Lender Pushes Toward 50.1% Broker Share
Updated
Updated · HousingWire · May 15
KBW Keeps $4.50 Target on UWM as Lender Pushes Toward 50.1% Broker Share
1 articles · Updated · HousingWire · May 15
KBW reaffirmed a market perform rating and $4.50 price target on UWM after its investor day, saying the lender is still positioned for growth even with elevated interest rates.
Q1 results underpinned that view: UWM closed $44.9 billion of mortgages, earned $170.4 million, and lifted total mortgage market share to about 9% from roughly 8% in 2024.
Management pointed to stable gain-on-sale margins of 115 to 130 basis points, AI tools including Mia and new servicing assistant Nora, and a faster shift to fully in-house servicing by October.
UWM said the broker channel could grow to more than 50% of the mortgage market from roughly 28% today, supporting CEO Mat Ishbia's goal of reaching 50.1% broker-channel share.
KBW said a Two Harbors deal would speed servicing-scale growth but is not essential, while the main risk remains higher rates that could further curb mortgage originations.
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