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UWM’s ‘All-In’ Clause: Are Brokers Truly Independent?

I recently found myself reflecting on David Stevens, the longtime mortgage industry leader who passed away last year. The conversations we had, the articles he wrote, his tireless advocacy – it was all aimed at bettering the mortgage industry and those we serve. He was positively focused, even when critiquing issues in order to improve them. David was rightly admired by everyone for leaving a legacy of making our industry better.

This led me to think about the current state of advocacy in our industry. Recently, UWM sent a cease and desist letter to a Facebook group that was discussing the company’s policies. UWM claimed the group’s posts were “adverse and defamatory,” but if people are just talking about what you do and you send legal threats, are you really operating in service of the broader industry?

UWM pits itself as the biggest broker advocate, but some of its actions seem to undermine that reputation. For example, earlier this year it sued a high-volume California brokerage for $2.8 million over breaching an exclusivity arrangement. UWM also closely monitors its brokers, and recently settled with one for $40,000 over violating its requirement to only work with UWM and no other lenders.

These quasi-monopolistic tactics raise questions – how can brokers be truly “independent” if they are restricted from working with major lenders in the field? Yes, UWM offers robust systems, but with their market position, is this level of legal force necessary?

David Stevens was a model for leading with humility and grace even in a competitive business like mortgages. As I considered his legacy, I thought – with 20 seconds left on the clock and victory assured, the true winners take a knee in modesty, rather than pile on more points. At the end of the day, no amount of money can buy you the legacy that selfless service and advocacy provides. I hope we as an industry can reflect on living up to David’s example.