UWM Holdings Corp

UWM Holdings reported a second quarter 2026 net loss of US$80.59 million, filed a new omnibus shelf registration covering multiple securities, and proposed a US$1.5 billion partnership with Oaktree. The company's shares trade at US$1.28, down 71% year to date, with total shareholder return down 69% over the past year. A popular analyst narrative screens the stock as undervalued with a fair value of US$3.87, while a discounted cash flow model estimates a value of US$1.08, suggesting overvaluation at the current price.

Wall Street finished the week higher, with the benchmark S&P 500 hitting fresh all-time highs, and the State Street Financial Select Sector SPDR ETF (XLF) added 1.16% from the previous week to close at $57.60. Among megacap stocks, Banco Santander led the winners, adding 4.26% to $14.70 after receiving Federal Reserve approval for its acquisition of Webster Financial. Berkshire Hathaway gained ahead of its second-quarter earnings release, while HSBC Holdings led the decliners, pulling back 2.53% to $103.73 despite reporting strong first-half results and updating its full-year guidance to include a roughly $2 billion savings target from reorganization. In the large-cap gainers, Blue Owl Capital advanced 15.24% after closing its European net lease fund with €1.6 billion in capital commitments, exceeding its original target, and Pershing Square added 13.82% ahead of its quarterly earnings. On the losing side, Hut 8 retreated 17.69% after missing revenue estimates, while mid-cap UWM Holdings dropped 29.67% and Sezzle fell 23.74% even after boosting its full-year guidance.

Shares of UWM Holdings, parent of United Wholesale Mortgage, plunged 40% on Thursday after the largest U.S. mortgage lender suspended its quarterly dividend and announced a $2.05 billion equity investment from Oaktree Capital Management and SFS Group Capital LLC, a newly formed vehicle owned by the family of CEO Mat Ishbia. The company said the dividend suspension is intended to preserve capital, while the capital raise comes as its financial position weakened, with total equity falling to about $1 billion as of June 30 from $1.6 billion at the end of March and available liquidity at approximately $1.3 billion. UWM lost $451.9 million on revenue of $888 million in the second quarter, reversing net income of $170.4 million in the prior quarter and a profit of $314.5 million a year earlier. Mortgage originations totaled $39.7 billion in the second quarter, down from $44.9 billion in the first quarter but unchanged from a year earlier. The moves occur amid a tough operating environment for mortgage lenders, with elevated mortgage rates keeping homebuyers on the sidelines and limiting refinancing activity.

UWM Holdings reported a second-quarter Non-GAAP loss of $0.23 per share, missing analyst expectations by $0.31. Revenue rose 17% year-over-year to $888 million, beating estimates by $193.04 million. Total originations were $39.7 billion, down from $44.9 billion in the first quarter but flat compared to the same period last year. Purchase originations increased to $23.8 billion from $18.7 billion in the prior quarter, while refinance originations fell to $15.9 billion from $26.3 billion. Adjusted EBITDA came in at $185.9 million, up from $160.9 million in the first quarter but below the $195.7 million recorded a year ago.

United Wholesale Mortgage, or UWM, lost its bid to acquire mortgage REIT Two Harbors after a bidding war with privately held CrossCountry Mortgage. UWM had initially agreed to a $1.3 billion all-stock deal in late 2025, but CrossCountry Mortgage later offered an all-cash deal that Two Harbors deemed superior. CrossCountry Mortgage's cash offer rose from an original $10.70 per share to $12, or roughly $1.3 billion, even after UWM offered $12.50 in cash for Two Harbor shareholders who preferred cash over 2.3328 shares of UWM. UWM showed discipline by not pursuing the deal further, which may benefit shareholders given the company's 20% dividend yield and earnings that do not currently cover the dividend. Loan origination volume in the first quarter of 2026 rose 39% year over year, marking the second-highest first quarter production in company history.

Two Harbors Investment Corp. urged stockholders to vote for its pending acquisition by CrossCountry Mortgage, warning that failure to approve the $12.00 per share all-cash deal could lead to a significant decline in the company's stock price. The board noted that it directly engaged with UWMC to seek a superior proposal, but UWMC has not submitted one, taken any constructive action, or contacted the company since the waiver window closed nine days ago. UWMC's stock has fallen more than 50% since December 2025 and hit an all-time low on June 18, 2026, which would value its default stock consideration at only $5.18 per TWO share. The CCM transaction, described as CrossCountry's best and final offer, includes a pro-rated stub dividend estimated at approximately $0.23 per share and has already secured 47 of 53 required regulatory approvals with closing expected in August 2026. Stockholders are urged to vote on the WHITE proxy card today.

United Wholesale Mortgage CEO Mat Ishbia is locked in a merger battle with Two Harbors Investment Corp. that highlights a roughly 60% decline in UWM's stock over five months. Ishbia's $1.3 billion bid for the mortgage servicer faces resistance because Two Harbors leaders want an all-cash offer and say UWM's financial condition is deteriorating. Two Harbors shareholders are set to vote June 23 on a competing $12-per-share cash bid from CrossCountry Mortgage, while a class-action complaint accuses Two Harbors management of violating fiduciary duty by abandoning UWM's offer. UWM's shares have fallen 49% this year, and Ishbia's net worth has dropped more than 34% to $6.6 billion, according to the Bloomberg Billionaires Index. The company also faces lawsuits over its business practices, including a $100 million suit from rival Rocket Mortgage and a complaint from minority owners of Ishbia's NBA team, the Phoenix Suns.