The shares of UWM Holdings Corporation (UWMC) saw a significant gain in the Pre-market. The stock was traded at $6.60 which is 19.57% gain from the previously closed value. In the last trading session, it closed at $5.52. The average volume of shares traded in the session was approximately 2.31M.

Reason for the gain in the UWMC stock

The company yesterday announced that they will accelerate the process of stock buyback from the public market in Lieu of lastly announced secondary offering and concurrent stock repurchase.

Financial highlights of 3^rd quarter

• As of 30^th September 2021, the total originations increased by 16% from the previous year’s same quarter. This year it was $63 billion and last year it was $53 billion.
• In the 3^rd quarter, the purchase originations were $26.5billion, which is a 119% increase as compared to the last year’s same quarter which was $12.1 billion.
• The net income in the 3^rd quarter was reported to be $329.9 million.
• As of 30^th September 2021, the total equity was reported to be $3 billion as compared to the last year’s same quarter which was $2 billion.

UWMC Operational highlights

• The company managed to maintain an average application close time to be 19 days in this quarter, while the industry average is 43 days during the same quarter.
• The company delinquency 1.01% 60 plus days and forbearance rates is 0.83%, which is quite better than the average industry number i.e. 3.93% and 2.62% respectively.
• The company executed Private Label Security of $1.7 billion. They sold MSRs on loans with a total unpaid principal balance of around $22.7 billion for proceeds of around $269.9 million.

Technological update

• UWM Holdings Corporation (UWMC) in the 3^rd quarter launched three new technologies. The purpose is intended to speed-up the process of loans and helps the independentmortgage brokers to grow their business.
• The Source which is a search engine for mortgage, it learns from past activities and searches that allow every UWM broker client to create a personalized hub to customize and analyze the information which is most significant to them. It could vary from pricing matrices to GSE guidelines.

Conclusion:

The financial statement of the company seems strong, and its future plans and developments are also future oriented. Its stock seems a significant choice for investors to invest in the long run.