Good morning. My name is Zen, and I will be your conference operator today. At this time, I would like to welcome everyone to the UWM Holdings Corporation Second Quarter 2021 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. [Operator Instructions] Thank you. Matt Roslin, you may begin your conference.

Matt Roslin, EVP of Legal Affairs and Investor Relations. Thank you for joining us, and welcome to the Second Quarter 2021 earnings call for UWM Holdings Corporation. Before we start, I would like to remind everyone that the conference call includes forward-looking statements. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the earnings release that we issued this morning. Before introducing Mat, I want to inform everyone on the call that our CFO, Tim Forrester, cannot be with us today due to personal reasons. Mat Ishbia, Chairman and CEO of UWM Holdings Corporation, United Wholesale Mortgage, will be delivering both the business and the financial updates on today's call.

Thanks, Matt. Appreciate it. And thank you, everyone, for joining the call today. It's great to be here, especially after another outstanding quarter here at UWM. Before we start, I just want to thank our team members here at UWM, our partners throughout America doing great things, mortgage brokers, independents out there, proud to partner with all of them. The Second Quarter was our best quarter in Company history from a volume perspective, so we're very excited about the results; not only did we post record numbers for production, but we almost doubled our prior quarterly production on purchase loans, and that's going to make a big difference as we talk about later on. Purchase production is an important measure; I'm going to explain the details of how we think about it later on in this call. On our last quarter call, as I will do every time, I let you know to hold us accountable for our numbers and what we say. We delivered above what we expected in many respects and are excited for you guys to see the results and talk about what's going to happen in Q3 as well. We delivered $59.2 billion in production, beating our guidance of 50 billion to 55 billion. At the time when most of our competitors were guided to do less and did less volume, our production was up over 20% at UWM compared to the prior quarter and resulted in an increase in overall mortgage market share by a significant amount at UWM. Our gain margin was 81 basis points in line with guidance and is actually a lower number than historic year numbers. However, we posted a solid profit. We delivered 138.7 million of net income. When I back out the 219 million to kind of fair market…

At this time, I would like to remind everyone in order to ask a question, [Operator Instructions] Your first question comes from the line of Steve Delaney of JMP Securities, LLC.

Thanks. Good afternoon, everyone, and congratulations to management on other beating or meeting your May 11th guidance for the quarter. Very strong. Matt, I say that for -- you're welcome, for one reason and that we heard a lot of -- we didn't get a lot of clarity, but we heard there was a lot going on at the GSEs in terms of I guess you could call it pricing actions or capital markets changes. It obviously had less impact on you than it had on others, it would appear, but could you share with us, just generally what was going on there, and what, I guess, we really need to know is how much of this was a one time pipeline impact and how much of this may be ongoing in terms of constricting the volume of business you do with Freddie and Fannie. Thank you.

Thanks for the question. First off, so everyone knows, Tim Forrester will be available for any questions this week; next week, if there are any follow-up questions that I can't handle financially or you want to hear his perspective, he's available for you. So he is always available. But to answer your question specifically, obviously, I know other companies have spoken about some changes, and we kind of look at those changes and see that that happens from Fannie Mae. I can't control what Fannie Mae and Freddie Mac do and how that impacts our business, and sometimes there are things that happen, and it's retroactive. There also be some things that retroactive in a positive way also sometimes, and so there's gives and takes in it in a positive way, what I think the most important thing that's happening on this so that you won't see these types of things from some of our competitors or really with us at all. Obviously, we're prepared to be profitable really in all situations. I talked about our cost to originate, but even on a compressed gain on sale, quarter like this one, the reality is this: the wholesale market is becoming more and more known as strong quality lenders, an opportunity for growth, and the best way for a consumer to get a mortgage. And so with that being said, we think a lot of the legacy, if that's the right way, legacy, the mindset around wholesale or around brokers or around some of the pricing actions that some of these places take are going to be a thing of the past in the very near future. Now, does that mean it's going to happen in the third-quarter report? I don't know, but we do know that the markets are adjusting to that the best way to get a mortgage is through a wholesale lender, through an independent mortgage broker, and the quality -- and all the other aspects of a mortgage process, people are -- and that's why so many people are trying to join in the wholesale channel because it's such a strong channel. Everyone sees mortgage brokers as the future of the industry. And so some of the legacy rules and some of the things other lenders have talked about that the GSCs might have imposed recently, I think those are short-term, and I think it one day we'll be talking on a quarter where they got reversed and all of a sudden, we picked up some money in our positive way, and that will happen then too.

Well, it definitely doesn't sound like it puts you on defense. That's for sure. Whatever they did, and I guess what we'll hear about all that over time, but just keep moving it forward. I like that. And look, just a quick follow-up in the comment. Thanks for including the third quarter dividend in the press release, $0.40 a year. That's a nice 5% yield, one where the stock is trading today, and I think it will keep some people interested. So look, it's not -- it's a little, and I'll let others talk may be more about the buyback, but it's somewhat not completely unusual for a company to be paying a cash dividend, also, buying back shares. But on the one hand, I was a little concerned that maybe the Board would change its view on the dividend and allocate more capital to shares. Do you think it's possible, I guess -- the Board will make a decision every quarter, but at least in this quarter for the Third Quarter, it looks like the board is doing both, paying the dividend and buying back shares. Is that a fair assessment?

That's fair, and I don't -- as the Chairman of the Board at this point, I don't see a reason that we would not pay the dividend. The dividend is a way to repay our shareholders, and I plan on that going forward. Obviously, we have to vote on it and talk about it every single meeting, but there's no inclination. There was no discussion or any concern about continuing it forward. The buyback was approved for $300 million, and we have 24 months to execute. We executed a good amount on it. And once again, if the float was larger, I would be taking a lot more advantage of it because the share price is at right now. With the dividend, it's a ridiculously high yield, as you are well aware of. And we're happy to reward our loyal shareholders that way, and we're going to continue to do so going forward.

Thanks for the comments, Matt.

Thank you.

The next question comes from the line of Henry J. Coffey Jr of Wedbush.

Good afternoon and thank you for taking my call and for collecting votes here. Given how your stock is trading relative to the book, and given the float challenges, I think the dividend is a terrific way to return capital. It seems it's one of the more attractive aspects of the [Indiscernible]. So if you're taking votes, I vote in favor of the dividend. On a highly technical area.

I agree with you, Henry, and I'm a large shareholder to use that were on the same team, you and me.

Yeah, right. I think you get to vote more than I do, sir. Smaller item, and we can get into this offline if it's -- but in March, your G&A expense was 16.8 million, and then in June, it was 42.1. Even though overall expenses were lower than we expected, I was just wondering what that one item was all about.

Yes. I think we can go offline on it, but it was just a reversal in the first quarter. So 42 was aligned with it. We -- are expenses actually went down as you saw. We just had a reversal on the Q1 of about 20 million, if I remember correctly, which puts us around 36, 37 on that same line item. So it was basically apples-to-apples, and our overall expenses have gone down, and that's why our cost originate has gone down as well.

That was very obvious. That it was -- all the other numbers moved in the other direction, and I was just curious about that one, but thank you.

Q1 was a one-time out-of-period reversal over contingency. In Q2, there was a 5 million added, but when you net out, that line item is basically flat.

Thank you. On a more interesting topic, you made a comment in the press release in the second quarter. We began seeing the return from the foundation we've built, particularly growth in purchase products and also renewed focus on Jumbo, FHA, or government lending and manufactured housing. I was wondering if you could tell us a little bit about both -- about two of those legs; the Jumbo business, which I'm assuming is more of a PLS securitization, and then the manufactured housing lending, which is an area that's been really quiet for some time.

We're looking at ways to continue to help our clients serve their clients. And so, the Jumbo product has been a huge success. We rolled it out. I think I announced it. It came out on March 17th. So really, we didn't really get a full two quarters -- a full quarter of it because you don't really close loans at -- until the middle to end April on it. But we did, on average, I think in the second quarter, about $2 billion a month of that product. So just under 6 billion, I think it's 5.9 up the top of my head in those three months and growing in July. And so we feel really good about that product. The nice part about that product is, it wasn't quite 50%, but it was almost 50% purchase, and so we talked about how it's going be a big purchase product as well, just like FHA and just like manufactured homes, is a much smaller product, but it's a nice way to take care of all consumers. Equitable housing is a big focus of ours, how we continue to do good things throughout the country. And quite honestly, a lot of our brokers just want to use UWM. They want to have the consistency of our process and submit their loans to UWM. And so they have the confidence that the Jumbo comes, the UWM, their FHA due, their VA, of course, their conventional loans due. They have the consistency that when a reloader brings them a loan in a transaction, they know they can come in and out and closing 10, 12, 15, 20 days with UWM. And so we rounded out our products a little bit. We obviously are all-time record quarter of 59.2 billion, and we're going to have our biggest year in company history by a lot as well. And so, the growth at UWM is not slowing down. And once again, rates just ticked up a tad bit, and everybody else fell off, and we grew. Wait till rates tick up a 0.5 or a point, and you'll see the value of these products along with our purchase focus, and UWM will not only become the number one overall lender but will continue to show great market share gains and a lot of great returns to our investors.

Given the -- how housing group is very bullish on manufactured housing because of the role it plays in affordable housing and the ability to give someone a house with a yard and security, I know Fannie has been a lender somewhat, Freddie Mac has it in, can you tell us in -- from your own perspective, what's going on with the GSCs and manufactured housing and what role United we'll be playing in that going forward?

Yes. We're working with the GSCs on the product. We're going to continue to offer the products and hopefully make an affordable home -- affordable housing more available to more and more people. And we think manufactured homes aren't going to become less of the market; they're going to become more of the market. And so we figured we'd get into it, making good inroads in it, make sure our processes are tight. And we actually had a lot of success in the -- we just rolled it out in mid-April. So it's still very new from a perspective of it -- of our business. But you'll see more of it in the third quarter and more going forward is our commitment to Ecuador and affordable homes throughout America.

The gain on sale margin competition, the primary, secondary spreads have actually improved than reasonably stable in July. We don't quite know what to expect for August, but can you give us a sense of what the competitive environment looks like in August on the gain front?

Yes. We're looking at our competition, and we're continuing to monitor everyone. But the reality is we feel that we are guided in a really good place. We feel really comfortable with where margins are. We can play in a place that other places can't base on our cost to originate. We feel really good about the guidance I've given you guys along with -- on both the volume and gain on sale numbers. And so, I don't think it's becoming more competitive or less competitive. I think the market is what the market is, and we obviously are the leader, which drives a lot of that volume and margin compression or increase. And so we're controlling it. We feel really good about where we're at, and we're highly profitable. The way I look at it is on our core earnings, we made over $350 million in the quarter, grew our market share substantially, grew 21%, gained $10 billion of volume, and all of our main competitors went down. And so I feel really good about where everything is at. We can make 300, $400 million in core earnings in a quarter, and I feel really good about where we're at. And then when the big opportunities come to make a little more margin, you'll see these huge numbers that you saw the last couple of quarters before this.

Well, thank you, and congratulations on a solid quarter.

Thank you.

The question comes from the line of Doug Harter of Credit Suisse. Your line is open.

Thanks. Mat, hoping you could talk a little bit about kind of how sticky you think some of these market share gains will be following the all-in need or desire to keep some of the price matches in [Indiscernible] for lacking a better word in the field you've been running.

Yes. It's extremely sticky. The loyalty on the all-in is black and white. That's not even whether it's sticky or not. Those people are all-in for the broker channel, which includes UWM and doesn't include two lenders that -- which we pointed out that we're not doing the right things for wholesale brokers. And so we made that stance. But the stickiness has been significant there with our clients. The growth has been significant with our clients. And quite honestly, just the alignment across the board where, hey, if your all-in for the broker channel, we're going to help you continue to grow, we're going to give you training, we're going to help you build your business, help you with all aspects of your business to grow and succeed, and that's what's working, and those clients are growing faster than the rest of the clients in the country. And so we had a very few amounts that weren't in the all-in mentality, and that's perfectly fine. But the great, great majority of all independent mortgage companies are, and that's why we've grown, and we will continue to grow as their partner going forward. And so that's a big part of it. And so how the stickiness, the price match and talking about those things. Those things aren't really driving volume. Those things are more of a confidence, and explanation for our clients to say, feel confident UWM 's prices great, our products are great, our service is the best, our technology is the best, our partnership is the best. Let's continue to work with UWM, and we can help you grow your business. And it's not only resonated with them, but it's also been overwhelmingly positive where they understand it, and they are all in with us, and we're helping them grow. And so our prices are very sharp. Do I have to continue with price matching those things? Those things are very, very nominal amounts because, quite honestly, you saw our margin. Our margins are pretty good. Our prices are really good. And so we're going to continue to be aggressive with growing the broker channel because it's best for consumers, it's best for the brokers, and it's best for UWM. And our market share gains were substantial seeing, and I think we are in the first quarter, we were 54 billion out of the number 1 spot. And now we're 24 billion out of the number 1 spot. So, a $30 billion closing of the gap in one quarter wasn't so bad. Imagine if rates went up to 3.5 or 4, you would see a whole different game very soon.

And then, just following up on kind of the margin outlook, I guess, what type of environment do you need to see to go from the 2Q 81 basis points towards the upper end of the guidance range of 110 basis points?

Yes, I think we guided to 100, so 80 to 100, and so do I think it will be 81 again? No, that's why I think we got 75 to a 100, actually, but I think I don't see margins going down. However, I don't see them going up much either. And so, the reality is this: margins are going to be in the range that we gave for this quarter. And I think I told you guys last quarter, and I believe it's between 3 quarters and 6 quarters. It could be at these all-time lows. But it's not going to stay down here very long. When you see the overall year, base averaging in the first quarter, along with second, third, fourth, it will be on the lower end of normalized but not as low as you see right now. And I don't think there's that far off until the opportunity comes back to where it gets back to more normalized, which is our low to mid-100 numbers. But it's not going to happen in the third quarter. And I don't foresee it happening in the fourth quarter. And so there's a lot of dynamics that go into how we price, and how we think about it, and what we think the best way to deliver value to our shareholders, while at the same time taking on market share and continue to grow and meet the vision and goals of our Company.

Thank you, Matt.

Thank you. Doug.

The next question comes from the line of Ryan Nash of Goldman Sachs. The line is open.

Thanks. Good evening, guys.

Hey, how are you?

Good. Matt, you just talked about the fact that you think pricing can stay at these levels for 3 to 6 quarters, and you don't think it's going to ease. It sounds like for the next two, so that will put us at four quarters, I guess. Big picture, what do we need to see to break this gridlock to eventually drive margins higher? And then, when I look at your margin, last quarter, and expectations for this quarter, it is a little bit lower than some of the others in the peer group. So my question is, can you hold on to volumes as price eventually increases and achieve a margin in line with others, but also still drive the volumes? Thanks.

Yeah, Ryan. Thanks a lot. So first off, our margins are not lower than anyone in my peer group. So, we're on the same page. Home Point, as you know, was substantially lower than us and not able to be profitable at those numbers. We would be, as you know. Rocket who they mix and match their partner book. It's not really broker business, and their broker margins are actually well below ours. However, they have 300 basis points plus margins on their affiliations, whatever they call them. And they kind of jumbo them all together. They're not 116 basis points. Their wholesale margins are well from our data, well south of 50 or right around 50. So just to put it, an apples-to-apples comparison. And so you'll see that across the board, we are the leader, the way that other lenders can get businesses, they have to be substantially better priced than us. And that's what's going to happen is, since they couldn't be, we grew, and they all shrunk. You're going to see that trend again. And so unless they can be substantial and lower. Even Rocket, who was substantially lower Home point substantially lower, they still both declined. And so there's a combination of gain on sale, along with business strategy. The business strategy around the purchase and our focus on purchase is a big differentiator. Price sensitivity is not there as much on purchase. And no matter what, even if your price was 75 basis points, you were making 0 on it. Brokers won't place a purchase to certain lenders because they can't actually deliver. And so that's why to keep telling everyone when rates went up 19 basis points. And everybody went crazy. Margins compressed, everyone did less business, everyone struggled. Wait till they go…

Got it. Thanks for the color. And then you guys had a nice quarter on the expense side. Can you maybe just talk about further opportunities to rationalize expenses? I think you talked about cost to originate going from I think you said 1,662 down to 1,490. I'm curious. Where do you think that could go as you guys continue to leverage the investments you've made in the business and the technology that you've developed? Thanks.

Yeah. Thanks, Ryan, I think that's a real key part that a lot of people don't recognize is that cost to originate that 43 basis points, whatever that number is. It's a huge, huge competitive advantage. And there's a lot of things we're working on right now to actually drive that even further down. Now, does that mean it will show up in the next quarter or the next quarter after that? We're going to wait and see, but we were doing different technologies that we rolled out. One of them I spoke to save d us $8 million. A couple of others that could say was 5 million a year, 2 million a year. There's opportunity there. And all those inches add up the feet, which add up to miles, and that's how we win. So we focus on every inch here, every day UWM. There is a lot of things, but we are not confused about our competitive advantage, which is our technology. Our technology is elite. It is the best in the country, not only for our clients but internally as well. And that drives our cost to originate, which is elite too. It makes a big difference. And so everyone can look good when there's a lot of volumes because they are cost to originate, isn't going to choke them out a little bit. But as rates go up a little bit and your cost to originate is not that great, you have bloated infrastructure, you have different locations throughout America, and all these different places that you have to pay for, regardless of fixed costs. They struggle a little bit more, and you will see that in the future. We don't know when but you will see it.

Thanks for all the calls, Matt.

Thank you.

The next question comes from the line of Thommy McJoynt of KBW. Your line is open.

Hey, good afternoon, guys. Thanks for taking our questions. Yes. As we've seen, you guys have continued to add to the team member headcount now up to about 9,000. Is that a signal that you expect to continue to be able to grow the dollar amount of your production, even when the market moderates a bit after more normalized levels?

Yes, thanks for the question. Nine thousand people, we got a lot of families that depend on us, and we're proud to have that many great team members joining our Company. The reality is we think that we are not in any position of concern around team members, and we're continuing to hire pretty aggressively. Now at the size of 9,000, you always have some people that attrition that happens, right? And so we're not -- I don't think we're going to go from 9,000 to 11,000 people this year. So I feel really good about -- I believe, and I think I've stated this before, that we will become the number 1 overall mortgage company in America, whether it's next year, the year after, or the year after that. And we might only have between 8,000 and 11,000 people because we can actually handle the volume where we're at right now while at the same time with our technology continuing to make things better and more efficient. We don't need to add headcount to do more volume. And so, we're able to do more business as we stand today. And so we're not going to be growing the team member accounts aggressively, but we feel a really good spot. And so I don't think our expenses, which is a tie that team members, which is about 65% to 70% of our costs, are going to be going up much from where we see them today.

Great, thanks. And then just on a different topic. Yes. You saw the interest income increase, and you partly attributed that to longer hold period times. And just looking at the balance sheet, you can see the loans held for sale obviously jumped pretty significantly over the quarter from 5 billion to 12 billion. And then, you also noted that post-quarter end, you temporarily increased some warehouse funding facilities. I just want to see if those are all kind of interrelated and what the reasoning is for the longer hold period time s.

Yes. Thanks for the question. And so there's opportunity out there. Obviously, the interest income's tied to that. So that makes sense. You got that right. But the opportunity for us, we've always been so efficient with selling our loans to Fannie Mae, Freddie Mac, even Ginnie Mae very efficiently. We didn't have any programs that could not go to them. So, we didn't have jumbo back then prior to this. And so, and then also the PLS market was not something that we were accessing. Now, all those things are in play. More jumbo, which is a couple of billion dollars a month. That generally just takes longer to be sold. And then, at the same time, we also have the PLS market where we have some investment properties, second homes that we can take out. We've done a couple of deals out in the market, and we're in the process of [Indiscernible], so we actually have to aggregate to hold those loans; although they can go directly to the GSCs, we can aggregate and hold them and actually have an arbitrage where we can pick profitability. And so there's a lot of different spots in our business. That's one of them that you're speaking of. Not only interest income went up by a little arbitrage on some gain on the sale. There's a lot of response where we can pick up margin, pick up what people would think are pennies, but pennies times 60,000 loans a month or whatever the number is, 150,000 loans in the quarter, it really adds up. And so those are opportunities for us. And so we look at that, and we have a great capital market and financing that are looking at all of these inches we can pick up, and one of them was on the interest income that you saw and the arbitrage maybe on some gain on sale on some of these private-label securities.

Thank great. I appreciate that [Indiscernible]

Thank you.

[Operator Instructions] Next question comes from the line of Ryan Carr of Jefferey's. The line is open.

Hi, good afternoon, guys, and thanks for taking my question. First is in terms of capital returning; you've had a lot of progress with respect to expanding the purchase volume and really being able to expand the momentum that you'd have following the all-in initiative. Just curious where you are thinking about from a priority standpoint going forward between the dividend buybacks and maybe reinvesting in the business and kind of where your decision making is in that respect.

Yes. Thanks for the question, Ryan. So first off, we're always reinvesting in the business. That's the main focus of growing the business to make sure there's a strong, stable business that has great returns for our investors. Then on the return of capital, the dividend we're very proud of, and we're going to planning on continuing that as we as I mentioned earlier because I think it's the right way to reward our loyal shareholders and we're going to continue. And based on how low the stock price is right now, it's an amazing yield for anyone who's buying our stock. And so that's a great opportunity as well. And now, on the buyback, once again, I don't have all the levers I can because of the lack of float right now. I think that's actually some of the drag on our stock price, and so I have to figure how to get more float out there, not less. And so, therefore, I'm looking at all different ways, and I'm very -- being very creative to figure out ways to provide more float because that's something I told people during our roadshow that I, as the majority owner, obviously, would help provide more float to the market. And so, I'm working on that. And so, it's kind of going a little counterintuitive because I love to buy back a lot of shares at prices below $10 like they are below $8, maybe even where it's at right now. And I love to be able to buy shares back. However, I have to be cognizant of the flow in honoring what I said I would do. So we're looking at creative ways to provide -- get more float out in the market, and at the same time, we'll continue to pay a dividend as we announced. And we are looking at all different opportunities to reward our shareholders. But investing in the business is what we've always done, and we're going to continue to invest in technology. It creates a major differentiation and moat around our business as we continue to grow in scale.

Got it. That makes a lot of sense. And kind of going off of that, you really have invested in growing the business and expanding it, especially given the growth in a very amazing, quite frankly, the success that we've seen to this point. When you also mentioned in the release kind of some of the savings that you're seeing from these investments going forward, the 8 million for the balance of the year. But how do you really think this was going to play in from a cost savings perspective, going forward, going into the environment that we're in, especially margin-wise?

I think it's going to be huge, and so the difference is, the 8 million is one thing is a couple of million here, a couple on there. And I know that sounds small, but that actually does add up, but the big stuff is on the efficiency gains. And so, we have some technology we're building proprietor ins house. That's going to help our team members. Let's just call it. We'll say conservatively 5% to 10% increase. Well, 5% to 10% increase of our team members, which means you don't have to hire as much to continue to grow. So we could really do instead of 20 billion in a month, we could do 30 billion a month with our team potentially right now and not have to hire more people. That's a big difference, right? And maybe 30 billion's a little exaggerated; we'll call it maybe 25% above what we're doing. So we'll call it 25 billion to 28 billion, comfortably right now at UWM. And so that gives us a huge, huge upside, because of our technology. And people don't recognize it because everyone says they got great technology. Well, the way you know someone's got great technology is how long does it take them to close loans? We're at 18 days, and everyone else is at 47, 50, whatever they're at. And then what our cost originate. And those are the two factors that really determine whether you have a great technology or if it's just a sales pitch. And so, we feel really good about our technology and where we're going with it, and how it's going to help drive our costs so that we can play in this and work 43 basis points. It's going to be really hard for somebody to compete with us if we want to really put pressure on people. Now we're not planning on doing that. We feel good about where the market is going and being able to make nice again on sale margin. But we have the ability to compete at the highest level with anyone to grow this business. And not only being the biggest but the best mortgage company in America.

Absolutely and I would say in anyone that comes to visit and sees the momentum that you built in the technology, they would agree. Final question for me, just given where rates are at this point, on how they kind of back in, it's curious to see -- to hear what kind of trends did you saw throughout the second quarter. Did you see a ti -- like a pickup in volume and demand at least on the consumer side through the brokers, through the last half of the month, and what do you think at this point in the quarter? And we just demand why do rates have kind of come where they're at?

We see huge demand. So I know a lot of people will like to say the inventory's tight. And yeah, the inventory's tight, but there are people buying houses out there. And it's at a major, major level right now. And so seeing $24 billion of the purchase at UWM in the quarter, I think if I ever said to you guys in the first quarter, was that maybe we get the 15 billion one quarter this year. And so it seems 24 billion, massive demand, and the key is, other people aren't seeing it because people are going to the brokers. Because the brokers are local, the realtors, those brokers get the loans close fast and efficiently. They don't want to go to those other lenders. And so the reality is the inventory in quotations as like that's the reason why that's not the reason why we had a pretty good purchase quarter. And when inventory continues to grow. Now, could we do more [Indiscernible] But we could provide? You more, but people are buying homes every single day, and the inventory out there does not have constraints. However, it does not constrain you from being successful in the purchase business because so many houses are for sale and if you can close fast, which is a big differentiator for us, because people that are selling houses, they're getting cash offers, they're getting -- they're thinking to offer from our borders broker bars that say, hey, 15 days, no contingencies or 15 days appraisal only contingency. And they take that offer. We closed an informed 12, 14, 15 days. We're doing that a lot, which is giving our brokers away to get out there and get more business. And that's why our purchase business grew in our overall business grew in the second quarter.

All right, thanks, Matt, and thank you, Matt Roslyn, as well, and congrats on the quarter.

Thanks, Ryan. Appreciate it.

The next question is coming from the line of Michael Kaye of Wells Fargo. Your line is open.

Pick up and competition in the wholesale industry. You would still -- that would seem to enhance the value proposition of that broker channel with lower mortgage rates offered to consumers. So I've been somewhat surprised when I look at mortgage industry employment data. When we saw mortgage broker employment growth, access stalls out over the last couple of months, I wanted to hear your views on why you think broker employment is slowed, and do you have confidence that the broker market is poised to continue growing?

Yes. Thanks, Michael; I appreciate the question. So I have zero confidence in any of the data that you have on the latter, but my perspective is that the data on the labor reports means zero to me. It doesn't even cross my mind as a relevant data point because I don't know where they're pulling up from a [Indiscernible] hold. I have data here which is a 70 loan officer started on broker shop last month, almost 200 loan officers, we help find a brokerage shop leaving retail. I've talked to, and I'll say, 3 of the top 20 loan officers in America that are at retail shops, and they all have the intention of starting their own mortgage broker stop in the next 6 to 9 months, calling me personally and reaching out and visiting our campus. I have no question that the broker channel is growing, not even a thought. It's just -- it's like as sure as I'm sitting here, I know it's happening. And the problem is I don't know what the data of [Indiscernible] employment stuff. I can't really speak to that, but the reality is brokers are growing, and when rates go up, that actually in the -- you talk about the pricing competition, Michael, which is a very astute thought because one of those strategies around us having a lower gain on sale margins is the retail lenders that have branch models that are I won't say dinosaur models, but they kind of are dinosaur models. The caliber retails the -- I think the guarantee rates alone depots the fairway independents; all nice companies do a good job, but the reality is those loan officers offering consumers higher rates, right? It isn't going to last long. Those [Indiscernible] in those companies don't…

Banks, banks, and that make a lot of sense. The second question you touched on it a little bit, but I wanted to get more perspective on that price matching promotion that you have. I believe I was originally slated to expire in June. That's been extended multiple times. I think the way this is the end of August. How often do you see broker clients actually utilizing this broker math, or is this more of a marketing tool to help your account execs rather than an actual negative from again, on sale margin perspective. And lastly, do you plan to extend it once again? Thanks.

Yes. Thanks for the question. And so, I have not decided if I'm gonna extend it once again. So, I have not made that decision yet. It is not a big drag on the gain on sales to answer your question. I'll call it negligible because the reality is our prices very good. Our brokers are very confident. Our brokers feel good about using UWM. Our salespeople have the confidence to go out and call them. And so it's really not been much of a dragon. It has been more of a positive. And that's why I've continued it and extended it a couple of times. And so we'll continue to look at it and see if it has the value to continue it. Or if there's something else we look at doing to continue to help our mortgage brokers grow their business if they're growing, UWM is growing. And if we're growing, then our shareholders and be happy as we continue to build our business.

Thank you, Matt. Thank you.

Thank you for the questions.

The next question comes from the line of Sameer Kalucha of Deutsche Bank. Your line is open.

Hi, thanks for taking my question. You talked about investments in technology, and in Q2, you launched the proprietary document management software. I was wondering if you could provide more color on that. And second, what is the impact of that? Does it change the closing period in any way? And how does it make the process more efficient?

Yes. Thanks for the question, Sameer; I appreciate it. The one we -- I spoke about on the call earlier today is just one example because we have a couple of different things out there, but the example you're speaking of is the way that -- it does not affect anything. It's basically taught our -- it's an internal system that we're paying a vendor, and we basically built it proprietary, made it better for our team members, made our people more efficient, made it more agile if you think of it that way for our clients because there's only a little used for our clients, but a little bit for them, but mostly internal. And it saved us multiple millions of dollars, and we will continue. These savings are not just one-time savings. It's a monthly saving because we're paying a monthly fee. And as we continue to grow, those savings will actually be bigger. I think the $8 million is a low estimate. We are just trying to be conservative. But we know that the technology work we put in place does make an impact not only on the bottom line but on our efficiencies too.

Got it. Thank you.

Thank you.

We have time for one more question, operator.

Yes, we only have time for one final question. Your final question comes from the line of James Faucette of Morgan Stanley. Your line is open.

Thank you very much. I'm glad to be able to wrap up here. I wanted to go back to your brokers and those relationships. And I'm wondering a couple of things. Is that first, any idea or sense of your share with brokers in the U.S. where you're at and potential to add incremental ones and then secondly, as you think about kind of growing the share of the broker channel itself, I think that the argument around, kind of the better pricing and even better service, in some cases, may resonate. But I'm wondering if, if there are other things that you could or should be doing to support the growth of brokers, whether it'd be direct advertising or investment or some of these other areas beyond the support that you mentioned, even as new brokers look to set up their own operations. Thanks a lot.

Yes, thanks for the question. So on the -- our market share, because I think the numbers will come out soon, but I think we're going to be well north of 30% in Q2. If you think about it, the three or four top competitors of ours all went down, and we went up substantially. And so I'd be very surprised if we weren't well into the '30s and growing, and we will be at 50% of that in the coming years because brokers choose us. They prefer to work with UWM as long as we're in the ballpark on price while at the same time delivering our technology, our service, all being great partners. Now on the partnership side, how can we help them continue to grow? We obviously have helped build a website called Find More. Please broker.com. We also have a phone number of -800 - brokers where people call in. They call us every day, where they call in, and we find them a local broker in their area where consumers can actually -- we can warm transfer them to a broker that's the right person in that community to help that consumer. And so we're doing more and more things, and we're going to continue doing more and more things on the marketing side. But the reality is this; there are three ways we can help brokers grow. One is consumers, educating consumers because the reality is that you guys can help me want to if you will, I'll get it right on [Indiscernible] and through. But it's faster, it's easier and is 100%, it's cheaper. So it's, I won't say 100, I'll say 99%, whatever you want me to say. It's factually correct. But it's going to be cheaper for the consumer. It's a…

This concludes today's conference call. You may now disconnect.