Key facts
- UWM plans to sell $70 billion to $80 billion of mortgage servicing rights in Q4 2026.
- Proceeds from the MSR sale are expected to exceed $1.8 billion.
- Funds will be used to pay down nonfunding debt, alongside $400 million from a rights offering.
- The sale suggests an MSR valuation of 240 basis points, assuming $75 billion volume.
- UWM's Q3 origination volume is projected at $33.4 billion.
- The company's MSR portfolio is projected at $270 billion in unpaid principal balance as of Sept. 30.
UWM Holdings Corp. plans to sell between $70 billion and $80 billion of mortgage servicing rights in the fourth quarter of 2026, aiming to raise over $1.8 billion to reduce leverage. The company also expects about $400 million from a rights offering to contribute to debt paydown. This move follows a volatile year for UWM's capital plans, including a failed acquisition and a $1.65 billion preferred equity deal with Oaktree Capital Management. Analysts view the sale favorably for managing leverage and paying back preferred equity.