In his "Executive Decision" segment, Cramer spoke with Matt Ishbia, chairman and CEO of UWM Holdings (UWMC) – Get Report, the mortgage broker that today announced an ambitious plan to become the No. 1 lender by 2024, a position currently held by Rocket Companies (RKT) – Get Report. UWM shares responded by rallying 5.8% by the close and currently trade for 11 times earnings with a 4% yield.
CEO said his "called shot" today stems from the results the company has been able to deliver and confidence in the future of their business. When you're able to close loans fast and make the process painless for buyers, people want to use you, he said, and that's exactly what UWM is seeing. When asked about the recent declines in their stock, Ishbia said that UWM got lumped in with other companies, like Rocket, but in reality, UWM is forecasting growth, not weakness. They're not a cyclical stock, he added. When asked why he's so confident in his growth, Ishbia said simply that UWM dominates the mortgage brokerage market but that market only accounts for 25% of all mortgages. Just growing their piece of the pie to 30% or 35% will translate into big gains.
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