United Wholesale Mortgage (UWM)’s 2021 move to bar its broker partners from also sending loans to Rocket Mortgage drove an average price decrease of 5 basis points per loan at companies not targeted by the policy, according to a new academic paper.
The analysis, conducted by Spencer Stone of the University of Kentucky, looks at how an exclusivity provision affects competition when it blocks only some competitors rather than all. Stone used Home Mortgage Disclosure Act (HMDA) data from 2018 to 2022, merged with Fannie Mae and Freddie Mac single-family loan performance data.
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