United Wholesale Mortgage (NYSE: UWMC) made a heated statement on Thursday, stating that any realtors and mortgage brokers that if they worked with rival Rocket Companies (NYSE: RKT) or Fairway Independent Mortgages, they wouldn't be allowed to work with UWM any longer.
"So I'm starting today and saying at UWM, we're not helping those that help them. If you work with them, you can't work with UWM any more," UWM CEO Matt Ishbia said.
In Ishbia's blunt ultimatum, realtors and brokers had until March 15 to sign an agreement pledging to work only with UWM if they wished to keep working with the company at all. Why? Their "underhanded practices," which Ishbia has accused the companies of using to undercut UWM's business.
"There are two companies that are underhandedly trying to take the lifeblood of the mortgage brokers by soliciting the loans officers and the real estate agents. We don't agree. We made the decision that if you want to work with them, we are not going to help you guys. Simple," Ishbia said.
Rocket Companies, however, issued a direct response to UWM.
"The incredible growth of Rocket Pro TPO, which had a 125% increase in business in 2020, clearly has Shore Mortgage very concerned. Today's move decimates the idea of the free and open market that is so critical to the broker community. We continue to advocate for the right of brokers and consumers to choose how they secure home financing. We do not support restricting consumers' options - whether it is through economic and social pressure or intimidation tactics," the company said.
There doesn't seem to be much evidence to back up Ishbia's allegations, at least at the time of writing. The suddenness, tight deadline, and the awkward position that UWM seems to be putting realtors and brokers into doesn't appear to be very beneficial to either firm.
Already, the "altercation" has put a bit of downward pressure on both firms' stocks, with both companies losing around 10% of their share value during trading on Thursday and Friday. Both companies are still in the black for the week, however. The downward trend will likely correct itself soon, though any further shots fired by either company could just as well push it back down.