Key facts
- United Wholesale Mortgage (UWM) reported a $451.9 million loss in the second quarter.
- The loss was primarily due to a $603.2 million derivatives loss from a failed acquisition.
- UWM secured $2.05 billion in capital, with investment from Oaktree Capital Management.
- Brokers indicate that their business operations with UWM have continued without disruption.
- Despite not always offering the lowest prices, UWM is valued by brokers for its technology, efficiency, and loan processing capabilities.
- UWM's CEO, Mat Ishbia, asserted the company's continued strength and commitment to broker support programs.
Mortgage brokers working with United Wholesale Mortgage (UWM) have indicated that business operations remain unaffected despite the company's recent second-quarter loss and a significant capital raise. UWM reported a loss of $451.9 million for the quarter, largely attributed to a $603.2 million derivatives loss stemming from its unsuccessful acquisition attempt of Two Harbors Investment Corp. Concurrently, UWM secured $2.05 billion in capital, with contributions from Oaktree Capital Management.
Despite these financial developments, brokers interviewed stated that their day-to-day loan production and processing with UWM have continued as normal. While some brokers note that UWM's pricing may not always be the most competitive, they emphasize the lender's strong technology, efficient turn times, and ability to handle high volumes as key factors in their continued partnership. Some brokers also highlighted UWM's incentive programs and support initiatives, such as training, as crucial to their business.
Mat Ishbia, UWM's president and CEO, addressed concerns about the company's financial health, asserting that UWM is stronger than ever and is committed to its broker relationships. He framed the scrutiny as a consequence of UWM's scale and the growing market share of the broker channel.