Wednesday, February 1, 2023

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Mortgage brokerage magnate Ishbia buys Phoenix Suns and Mercury

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Mat Ishbia, Chairman and CEO of United Wholesale Mortgage, decides to acquire Phoenix Suns and Phoenix Mercury.

The deal is reportedly worth nearly $4 billion per source who spoke to it. ESPN.

The sale will be a record high for an NBA franchise, surpassing the then NBA record $2.35 billion for the Brooklyn Nets back in 2019 for Joe Tsai.

It came at an interesting time. The amount of housing loans has decreased significantly from last year. Thanks to the huge increase mortgage rates.

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But it could be a way for Ishbia to diversify his assets and not be fully dependent on housing lending.

Ishbia will buy Phoenix Suns for about $4 billion.

As noted, Ishbia will reportedly buy the Phoenix Suns and WNBA franchise Phoenix Mercury for about $4 billion, per ESPN.

And while he’s probably best known for being the owner of United Wholesale Mortgage, the largest mortgage lender in the country. But he also has many basketball connections.

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First, he walked in Michigan. which is one of the best college basketball programs in the country.

He was also part of the team that won the Spartans National Championship in 2000, although his playing time was very limited.

Back in the summer of 2021, he signed a “Name, Image and Likeness” (NIL) agreement for UWM with Michigan State. Offers $500 a month to MSU athletes during the 2021-2022 season

UWM previously entered into an agreement with the Detroit Pistons to feature their logo on the left front strap of their official team jerseys for the 2021-22 NBA season.

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This man obviously loves basketball. and is now making the leap forward through NBA/WNBA ownership.

Let’s say the sale goes on. It will mark the end of the Robert Sarver era dating back to 2004.

Prior to that, Jerry Colangelo owned the team. which was sold to Sarver for $401 million at the time.

Ishbia joins Rocket Mortgage founder Dan Gilbert as an NBA owner, with the latter acquiring the Cleveland Cavaliers in 2005.

Ishbia is leading the Mortgage Brokerage Revolution.

mortgage broker stocks

after mortgage crisis in the early 2000s mortgage broker often blamed for what happened

A common argument is that the quality of credit provided by wholesale (brokerage) channels is worse than credit provided by retail or agency channels.

at that time Many wholesale mortgage lenders have closed shop.and large banks shut down the mortgage brokerage channel.

but over the years Mortgage brokers have made a big comeback. and now holds the highest market share since 2009.

Continue the still image shared on Twitter recently by IshbiaMortgage broker share rose to 22.25% in the third quarter of 2022, up from just 14.61% in 2016.

apparently up to 35% in 2006 before the housing market crashes But it dropped below 10% for several years after that.

Ishbia’s UWM only operates through a wholesale lending channel. This means you can only work with them through an independent mortgage broker.

They do not have a retail operation that caters to consumers. Unlike some competitors who do business through both channels.

Despite this UWM becomes the nation’s largest mortgage lender in the third quarter of 2022..

Ishbia’s companies have been able to generate about $33.5 billion in home loans. which is significantly greater than its cross-town competitors. rocket mortgagewhich provided $25.6 billion in funding.

Of course, the big numbers are just a reflection of the three-month period. Will have to wait and see if they will be able to occupy the top position in the full 12 months or not.

If they did, it would be a 100% success given to the mortgage broker.

As for the Phoenix Suns and Mercury, they deserve great care, with owners with true basketball pedigree.

(photograph: chili head)

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