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UWMC has a business model that should weather the storm much better.

This pure focus on wholesale means UWMC does not spend as much cost on the servicing and advertising necessary to sustain a large retail business like for RKT. Overall, UWMC actually has had consistently higher net income margin than RKT, currently sitting at 68% vs. 58% for RKT.

UWMC's focus on wholesaling and working entirely with brokers makes it much easier for it to pivot to home purchase originations, which Freddie Mac actually predicts will grow 16% by 2022. Home purchases are more complex than refinances and the value of using a broker shines in those cases. In fact, UWMC is already more heavy on home purchases than its competitors. In the most recent quarter, 25% of its volume came from home purchases. Furthermore, a rise in interest rates may actually benefit UWMC in that the value of the loans they generate will be higher due to the higher cash flows.

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