Mat Ishbia, president and CEO of United Wholesale Mortgage, is set to purchase the Phoenix Suns and Phoenix Mercury.According to sources who spoke with ESPN, the deal’s value is somewhere around $4 billion.This sale would have been a record-high for an NBA team, and well above the previous NBA record of $2.35 Billion for Brooklyn Nets in 2019, to Joe Tsai.This comes at a particularly interesting time. Mortgage volume is down significantly from last year, thanks to mortgage rate being much higher.It could also be a good way for Ishbia not to be completely reliant upon mortgage lending.
Ishbia will Purchase the Phoenix Suns For Around $4 Billion
ESPN reports that Ishbia is reportedly going to acquire the Phoenix Suns, and WNBA team Phoenix Mercury, for around $4 billion.
While he is best known for being the owner of United Wholesale Mortgage – the largest wholesale lender in the United States – he also has many basketball connections.He was a walk on at Michigan State University, which is one of the top college basketball programs in America.He was also a member of the Spartans 2000 National Championship team, although his playing time on that team was very limited.
In the summer of 2021 he signed a “name image and likeness (NIL), deal with Michigan State. He offered $500 per month for MSU athletes in the 2021-2022 seasons.UWM had already made an agreement with the Detroit Pistons, to place their logo on the left-front strap of the official team jerseys during the NBA season 2021-22.
It’s clear that the man is a basketball fanatic, and he’s now making a big leap forward by becoming an NBA/WNBA owner.If the sale is successful, the Robert Sarver period will end. It dates back to 2004.Before Sarver, Jerry Colangelo owned the team. He sold it for a then-record $401 million.Ishbia is now an NBA owner along with Rocket Mortgage founder Dan Gilbert, who acquired the Cleveland Cavaliers back in 2005.
Ishbia has led a mortgage broker revolution
After the Mortgage Crisis of the early 2000s, Mortgage Brokers are often blamed for the events that occurred.It was generally believed that loans originated through the wholesale channel (brokers), were of lower quality than those obtained via the retail or correspondent channels.The wholesale mortgage market was closed down by many wholesale lenders at the time.Over the last few years, mortgage brokers have returned to the market in a big manner, and they now hold the largest share of the market since 2009.According to a recent slide shared on Twitter by Ishbia the share of mortgage brokers rose from 14.61% to 22.25% during the third quarter 2022.The housing market crash in 2006 caused the to fall below 10%.Ishbia UWM only works via wholesale lending, which means you can work with them through an independent mortgage broker.The company does not offer a retail service to the public, unlike their competitors who do business through both channels.Despite this, UWM became the largest mortgage lender in the country during the third quarter 2022.Ishbia’s company originated about $33.5 billion worth of home loans. This is significantly more than the rival Rocket Mortgage across town, who funded $25.6 billion.Their big numbers reflect only a three-month period. It will be interesting to see if they are able to maintain their top position for a full year.It would be a remarkable feat, given their total devotion to mortgage brokers.The Phoenix Suns and Mercury should be in safe hands with an owner who has a basketball pedigree.