Rocket Mortgage is mounting its latest challenge against United Wholesale Mortgage's controversial "All-In" policy with a new broker transition program and permanent base-pricing cuts, designed to recruit brokers away.
Rocket Pro, the lender's wholesale channel, announced Tuesday the launch of a program, called Moving Squad, that will help brokers transition their business from competing wholesale lenders, particularly UWM and its ultimatum policy, also known as the All-In initiative. The rule, established in 2021, proclaimed UWM wouldn't work with brokers who also conducted business with Rocket and Fairway Home Mortgage
Rocket said brokers have expressed interest in moving on from
"The word 'ultimatum' flies in the face of what makes brokers so powerful and unique, which is choice," Austin Niemiec, chief revenue officer at Rocket, told National Mortgage News. "It's sad and embarrassing for our industry that brokers have to worry about being sued when they send a client, an American family, to Rocket because our pricing's better, but it's the reality of the ultimatum and why it's unacceptable."
Rocket has seen more brokers move from UWM to its wholesale channel in the last 90 days than the previous 12 months combined, largely due to UWM's rising prices, Niemiec said.
When a broker switches to Rocket, they are assigned a moving squad, which consists of a director of growth, a crew leader, an account executive and a trainer. The team helps onboard loans, answers questions and teaches Rocket's systems, processes and tools.
"The goal is from 'Hello, meet your moving squad,' to first loan submitted in under 10 days," Niemiec said. "That's how quickly we can get folks approved, trained up and ready to originate."
Niemiec made it no secret the program comes as a response to UWM's initiative, and current Rocket partners who help a UWM broker leave the lender can earn up to a $10,000 cash bonus.
UWM views this announcement as an admission Rocket cannot compete with its wholesale operation.
"After more than a decade of brokers overwhelmingly choosing UWM, it appears Rocket has decided cash incentives are the latest attempt to buy what they've been unable to earn," a UWM spokesperson said. "Independent mortgage brokers are savvy business owners who know the difference between a short-term bounty and a long-term partner."
Brendan McKay, president and co-founder of the Brokers Action Coalition, said UWM's sentiment would be valid in an open market.
"The ultimatum's bullshit. ... It has completely divided the broker community, which is frankly tragic," he said. "Talking about the ability to compete when you've completely titled the playing field is disingenuous."
Rocket's new base pricing
The lender also announced its 60-basis-point purchase and refinance credits are now permanently part of its base pricing. This applies across conventional, Federal Housing Administration and Department of Veterans Affairs loans.
Niemiec said this originated from the broker community's wants for simple, transparent, consistent and aggressive pricing, not gimmicks.
"It's incredibly aggressive," McKay said. "Price always matters, but especially when you're trying to ramp up competition in a situation where brokers are forced to make a decision like this. The $10,000 is a very flashy headline, and it is impactful, but pricing always wins."
