As one of the top mortgage lenders in the country that did nearly 45B in originations and netted 170M in Q1 it seems crazy to me that this company has fallen as far as it has.
I get that there is serious concerns around leadership and of course constant discussion about whether or not it the dividend will be cut, but if the dividend stopped today, this would look like a pretty good value play from where I’m sitting on the sidelines.
I recognize that the past couple years has been a bloodbath for anyone in the lending / housing space with mortgage rates fluctuating on a near daily basis, but as with BRKs acquisition of Taylor Morrison it seems completely reasonable to assume that people will still want to buy houses and people who own houses will want to move - mortgages are going nowhere and UWM has one of the biggest books and most diversified networks for originating loans.
They have a massive 240B servicing book - I’m not saying they are too big to fail, but I don’t see why people think they are failing at all - it’s been a tough couple years and that naturally eats away a bit, but unless you think that the housing downturn is slated to last another 5+ years, this seems like a screaming buy at this price point, no?
Interested in other’s thoughts