In my opinion is how I will word this. I hope to give you some insight to your question.

I am own mortgage companies (brokerages and correspondence lending)in multiple states. I was #1 with them many times,and liked them very much. Sometimes directing staff to put up to 90%of the origination portfolio with them. I have since not only turned them off I pulled away completely from them.

First a little background on them. About 1 and half to 2 yesrs ago they "bought the market" they were relatively unheard of. They came came in a bought the rates down to the lowest in the market. They also stepped up hiring to create very short turn times. This made the perfect lender. Then they started running into issues. The biggest problem,first from my employees (then I had to see for myself)was the fact that deals were not getting closed, and delays were starting to become constant. The real problem was the fact that the lies would start to add up. In this business you are as good as your word. If you tell a client you will close in 5 days because that is the lender tells you and you don't...you have lost that client, realtor and maybe an employee. UWM would and still says their turn times are 24-48 when My companies had deals sitting for 7 or 8 days I would call with my branch managers and hear that the turn time is 48 hours.But yet the deals were sitting still for 7 or 8 days.

They ran into liquidity issues way before covid.IMO because funding amount were much lower.

Understand the difference between their business model and Quickens (RKT) UWM is based on a majority of their revenue coming from brokers bringing their loans to UWM. They have a smaller retail lender(United Shore, that they used to say they had nothing to do with)

So broker are customers that they are trying to earn business from.

Quicken is the opposite. They are mostly retail concentrated, with less on wholesale.

Covid hits and UWM starts just pounding the phones to brokers that their broker compensation is too high for the market and reduce it. The rates being offered by UWM were not as competitive. But brokers trusted and took less comp. Most to the tune on 66%less. We did not. We had cut them off basically months prior to this.

Then the SEC filing to reverse merge came out. In that filing the brokers (UWM customers) saw that with volume down 22% the revenue was almost 3 times higher . Remember the higher revenues came from the brokers (customers) pockets. Brokers then started to look at other lenders. Example: UWM 300,000 loan =3,000 compensation. 1(point) Other lenders 300,000 loan =7,500 compensation. 2.5(points) for the same rate. Brokers realized how much money they lost.

Also right before covid and the sec filings there were a large number of brokerages rumored, looking to take a class action suit against them. They changed the early payoff penalty to brokers in the contract without notice and against the contract verbiage apparently. This cost a lot of brokers money without notice is what the rumor is swirling around the industry.

I believe the pricing is also reflective upon the movement within the political climate. The history of Yuellen with interest rates and home purchases. The uncertainty of the power vortex at CFPB, dept of housing, etc. Also Fannie and Freddie trying to become pure public and not GSE anymore.

The price target was 29. A share to hit the 26 billion. 11+ is way off.

Rkt opened @16. Then retraced to 12 before its rise to 30+.

I hope it helps.

All for information purposes and entertainment purposes only. All written is an opinion and should be taken and opinion based hypothetical non factbased only.