$GHIV is merging with United Wholesale Mortgage with a transaction value of $16.1 billion. The Merger date is January 22nd, 2021. This transaction value will make UWM the largest SPAC transaction ever. UWM is already the #2 mortgage originator and the #1 wholesale originator in the U.S., making this SPAC poised to bring significant returns. No, this SPAC is not some sexy, young EV play – it’s a real, legitimate, meaningful, and growing business, and wall street is going to pay up and buy shares at this low price.
United Wholesale Mortgage has been growing exponentially since 2014, and with interest rates at a low, it is a great time to get into this company because when rates rise, UWM will become more profitable.
Key Investment Highlights
- Leading Player In a massive market with Structural Tailwinds
- Best In-class broker experience leading to the number one wholesale market Position
- Resilient platform with the ability to scale in Every rate Environment
- Compelling financial profile with multiple growth levers
- the organization built on a strong culture and exceptional leadership team
- $0.40 Annual Dividend
UWM employees were issued a minimum of $1,000 in company stock, with individual amounts based on tenure, the company said. In all, the lender has offered a total of $35 million in employee-owned shares to the 7,300 workers. UWM has also pledged $25 million in bonuses and promoted a series of raffles, car leases, groceries, and free trips to workers. United Wholesale Mortgage has posted record profits amid the low-interest-rate environment that has driven a massive volume of refinancing through UWM’S broker clients.
UWM, which only operates in the broker channel, has offered many low rate mortgage products to persuade mortgage brokers who are awash in customers looking to clip 100 points or more on their existing mortgages.
According to UWM, a homeowner or buyer must have a FICO score of at least 640. The company also said: “Since every borrower’s situation is different, interested loan officers can price out this specific product in UWM’s EASE system or call their AE [account executive] for more information.”
Overall I think $GHIV is looking like a potential buyer. With the value floor of this stock being $18, this stock will go as far as the buyers will take it. When Cramer speaks about GHIV, The SPAC will get more attention, more buyers, heavier buying pressure. We will see a high of $25-$30 leading up to the merger on January 22nd. UWM is not your traditional high-risk SPAC. It is a stable company that has been a successful business for many years and is a great long term SPAC play, in my opinion.