About this episode
In today’s Daily Download episode , HousingWire covers an announcement that United Wholesale Mortgage will merge with special purpose acquisition company Gores Holdings IV Inc, in a deal that will value the new UWM at $16.1 billion. For some background on the story, here’s a summary of the article: United Wholesale Mortgage , the largest wholesale lending firm in the country, is joining the blank-check company craze and will make its public debut via an acquisition. The Detroit-headquartered UWM will merge with businessman Alec Gores’ special purpose acquisition company (SPAC) Gores Holdings IV Inc in a deal that will value the new UWM at $16.1 billion, the company said in a statement Wednesday morning. That’s roughly 9.5X the company’s estimated 2021 adjusted net income of $1.7 billion.The acquisition will enable UWM to retain roughly 94% of the combined company. As part of the deal, UWM will receive about $425 million in cash held in Gores’s trust account, plus $500 million from a private placement. The combined company will be listed on the Nasdaq under the ticket symbol “UWM Corp.” The Wall Street Journal first reported the news . Following the main story, HousingWire discusses a report from the Mortgage Bankers Association that indicates mortgage applications gained 6.8% last week, and what the FHFA’s request for industry input on its strategic plan for 2021 to 2024 could mean for the future of Fannie Mae and Freddie Mac. The Daily Download examines the most compelling articles reported from the HousingWire newsroom every day. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward . This podcast is hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham. HousingWire articles covered in this episode: United Wholesale Mortgage plans $16B public debut via acquisition Housing market stays hot into fall with mortgage applications up 6.8% FHFA requests input on goals for Fannie Mae, Freddie Mac