UWM Holdings Suffers Record 49% Drop Following $452M Loss and Dividend Suspension
Shares of UWM Holdings Corporation (NYSE: UWMC), the parent company of United Wholesale Mortgage — the largest mortgage lender in the United States — experienced a record single-day drop of 49% on Thursday, August 7. This dramatic fall followed the company’s announcement of a staggering second-quarter net loss of $451.9 million and the unprecedented suspension of its quarterly dividend.
The significant loss, a stark contrast to the profit of $314.5 million from the same quarter the previous year, was primarily due to a $603.2 million derivatives loss. This loss was associated with a large hedge established during UWM’s unsuccessful bid for Two Harbors Investment Corp. CEO Mat Ishbia referred to the hedge as a “transaction-specific mistake” that is not expected to recur. The total quarterly revenue was reported at $888 million, with loan origination volume at $39.7 billion.
In addition to the disappointing earnings, UWM announced a $2.05 billion capital investment from Oaktree Capital Management and SFS Group Capital, an investment vehicle owned by Ishbia and his family. The agreement includes preferred equity and warrants, with the majority of the proceeds designated for debt repayment. UWM also intends to launch a $400 million rights offering for Class A shareholders. The dividend suspension was characterized as a strategy “to prioritize debt reduction and balance-sheet strength.” Since their 52-week high in September 2025, UWM shares have lost approximately 83% of their value.
Source: CNBC – United Wholesale Mortgage Plunges 35% After Suspending Dividend and Raising Capital