Key facts
- UWM's net income of $212.5 million compared with a $451 million loss in the second quarter and $12 million of profit a year earlier.
- Mortgage originations fell to $33.4 billion from $39.7 billion in the second quarter, with about 68% purchase loans.
- UWM expects more than $1.8 billion of proceeds from selling $70 billion to $80 billion of mortgage servicing rights in the fourth quarter.
- The servicing portfolio ended the quarter at $269.8 billion in unpaid principal balance, up from $247.6 billion on June 30.
- Net non-funding leverage was 1.77x with about $1.35 billion of available liquidity, and Ishbia expects it below 1.5x by year-end.
- The Oaktree package comprises $1.65 billion of preferred equity and a $400 million rights offering for existing shareholders.
United Wholesale Mortgage reported net income of $212.5 million for the third quarter of 2026, up from a net loss of $451 million in the second quarter and $12 million of net income in the same period a year earlier, according to filings released Wednesday by the Securities and Exchange Commission. The Pontiac, Michigan-based wholesale lender said the profit came as originations and margins declined, reflecting expense reductions and a balance-sheet reset.
Originations totaled $33.4 billion in the quarter, down from $39.7 billion in the second quarter and $41.7 billion a year earlier, as mortgage rates were higher. About 68% of the loans closed in the quarter were purchase loans. Expenses fell 10% from the prior quarter to $576 million. Chairman, CEO and president Mat Ishbia told analysts the reduction was "tied to the investments we made in AI and technology over the last couple years, when everyone thought our expenses were higher," and came as the company brought in 700,000 loans to service in-house in 2026.
Gain-on-sale margins slipped to 124 basis points from 133 basis points in the second quarter and 130 basis points in the third quarter of 2025. Ishbia said he expects margins to be steady as "people don't use UWM because we're the lowest rates," adding that competitors offering lower rates are not good partners.
The servicing portfolio ended the quarter at $269.8 billion in unpaid principal balance, up from $247.6 billion on June 30, with the weighted average coupon up 4 basis points to 5.97%. UWM expects more than $1.8 billion in proceeds from its previously announced plan to sell $70 billion to $80 billion of mortgage servicing rights in the fourth quarter. Ishbia told analysts he does not think that is a "significant" amount of MSR sales, comparing it with an estimate of $135 billion to $140 billion in MSR sales by year's end and $180 billion sold in 2025.
"We just did a lot in the fourth quarter, but I do think it's a great, opportunistic thing for UWM. I'm big on derisking, deleveraging. It creates cash," Ishbia said. Keefe, Bruyette and Woods analysts said in a report that the company had positive MSR valuation marks of $632.9 million, partly offset by $481.5 million of derivative losses, for a net valuation gain of $151.3 million that pushed GAAP income above operating income. Ishbia said UWM will evaluate hedging its MSRs quarterly, citing past over-hedging.