HMPT - Rocket stock extends decline after UWM Holdings plans to drop Rocket brokers

Rocket Companies ([[RKT]] -5.2%) stock falls and Home Point Capital ([[HMPT]] +1.3%) rises after UWM Holdings ([[UWMC]] -3.5%) said it wouldn't work with mortgage brokers that work with Rocket or Fairway Independent Mortgage.UWMC alleges that Rocket and Fairway are "creating roadblocks for the broker community to thrive, and asking brokerages to make a decision on whether or not they are all in on the future of the wholesale channel."UWMC said the split with those brokers will take effect on March 15.BofA Securities analyst Mihir Bhatia estimates the broker channel accounts for ~30% of Rocket's total 2020 production. UWMC is the largest originator in the wholesale channel with twice the market share of Rocket, Bhatia notes.It's still not clear how the situation will play out, but "it seems likely that RKT's volume and overall wholesale channel margins could face some pressure," the analyst said.Meanwhile, HMPT, the third-largest originator, could benefit from

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Rocket stock extends decline after UWM Holdings plans to drop Rocket brokers