UWM falls after Hunterbrook report on pressuring mortgage brokers

UWM Holdings (UWMC) pressures mortgage brokers to push deals its way, reports Hunterbrook Media, which aims to “bring visibility to under-covered regions and accountability to under-scrutinized sectors.” The website found $39B in mortgages came from brokers who sent UWM more than 99% of their business. In all, borrowers paid UWM between hundreds of millions and billions more in closing costs than people whose brokers found them typical loans, Hunterbrook says, citing its own data analysis. The website alleges UWM tells homebuyers that its mortgages come from independent brokers, “while turning those brokers into loyalists who send the company business regardless of price.” Hunterbrook Capital said it is short UWM Holdings and long Rocket Companies (RKT).