UWM's ban has provoked increased interest in Fairway, CEO says

Fairway Independent Mortgage did not directly address comments made by United Wholesale Mortgage CEO Mat Ishbia in its first public statement on the matter, but said it welcomed the interest the controversy generated.

"We appreciate the extra attention the last two weeks have provided and are thankful for the extra opportunities we’ve been given," Fairway's CEO Steve Jacobson said in a press release. "We will always support a broker's decision to work with any lender they choose, and we will continue to work every day to earn the trust and respect of all our origination partners."

UWM’s move to prohibit brokers from working with Fairway and Rocket was met with stronger language from Rocket Pro TPO executive vice president Austin Niemiec.

"Why would UWM ask mortgage brokers to give up their freedom and their superpower of choice?" he said at the time. "It's not because of any morals or a principled stance, like they so aggressively claim. It's fear."

And that’s why, in this three-way controversy, Fairway has been more of a sidenote. Unlike the other two companies, which are Detroit-area rivals, Fairway is based in Madison, Wis. It is privately-held and its market share is smaller.

Fairway closed nearly $65.8 billion in 2020 in all channels. In comparison, last year Rocket Cos. closed $320 billion, of which $97 billion came from mortgage brokers. UWM did $182.5 billion, all from wholesale.

Ishbia claimed that Fairway has actively recruited loan officers from mortgage broker shops, and that the practice is hurting that particular business as a whole.

However, while not speaking directly to Ishbia's comments, Jacobson pointed out that Fairway started as a mortgage broker in 1996, and became a mortgage banker as the company grew, "nothing more or less."

In a later interview, Ishbia said that Rocket and Fairway would be the only two companies that UWM would not allow its brokers to sell to.

At least one other wholesale lender, Homepoint, said that the controversy led to increased inquiries from mortgage brokers that had not done business with it in the past.

Fairway made its own pitch for mortgage brokers to visit its website and learn more about the company.

"We are grateful for the mortgage broker community and our customers, and we will continue providing brokers with programs that benefit all borrowers, including veterans who have fought for their share of the American dream of financing their own home," Jacobson said.

Separately, Consumer Action for a Strong Economy, an organization that calls itself "the free-market voice for America's consumers," has created Save Broker Choice in reaction to the UWM announcement.

"Competition in the marketplace is the best way to ensure the best options for consumers but UWM's ultimatum will only limit resources for brokers and ultimately force consumers to pay the price," said Matthew Kandrach, president of CASE, in a press release.

Ishbia previously denied UWM is looking to limit competition, pointing out there are over 70 other wholesalers mortgage brokers could work with.

"Competition is a cornerstone of the free market economy, driving American ingenuity and keeping costs affordable for consumers," Kandrach said. "The mortgage sector is certainly no exception, and more options for brokers means more, and likely better, options for consumers."