‘Insidious’: Veteran broker blasts Rocket’s attempt to woo UWM brokers
Amir Nurani (pictured top), broker-owner at Left Coast Leaders in San Diego, said the economics behind Rocket’s pitch tell a very different story than the one being sold to brokers.
“When you look at the economics of what Austin (Niemiec) is proposing here, it is insidious,” Nurani told Mortgage Professional America. “This is a bunch of smoke and mirrors. It’s framed around protecting the broker, protecting a low price, broker choice. It doesn’t have anything to do with any of that.”
Behind the $10,000 math
Nurani walked through the numbers using a $300,000 loan, a figure he said reflects the national average for both companies.
“Wholesale channels are going to make anywhere between 80 and 120 basis points on a loan when they get a loan funded through a broker,” he said. “We’re going to use the median, 100 basis points. On a $300,000 loan, the wholesale lender makes 100 basis points, or $3,000.”
That figure only tells part of the story, Nurani said, since he believes Rocket is positioning itself to capture a second, far larger payday down the road.
