The quarter's net loss was driven primarily by a hedge-related event tied to UWM's failed bid to acquire Two Harbors Investment Corp.
United Wholesale Mortgage closed its second quarter of 2026 with a $451.9 million net loss and announced what its chief executive called the largest capital raise in mortgage industry history — a $2.05 billion equity investment.
The Pontiac, Michigan-based lender, the publicly traded parent of UWM Holdings Corporation, reported total loan origination volume of $39.7 billion for the three months ended June 30, flat year-over-year but down from $44.9 billion in the first quarter.
Total revenue came in at $888.0 million, and adjusted EBITDA reached $185.9 million, up from $160.9 million in the prior quarter.
The quarter's net loss — compared with net income of $170.4 million in the first quarter and $314.5 million in the second quarter of 2025 — was driven primarily by a hedge-related event tied to UWM's failed bid to acquire Two Harbors Investment Corp. CrossCountry Mortgage ultimately secured that deal.
"It was a quarter-specific mark-to-market impact and does not reflect the underlying strength of UWM's core business," a company spokesperson said.
The company's non-funding debt-to-equity ratio stood at 6.13 at the end of June, up from 3.18 at the end of March, explaining the urgency behind the capital raise.
A strategic partnership takes shape
To address its balance sheet, UWM secured $1.65 billion in preferred equity at closing from Oaktree Capital Management and SFS Group Capital, LLC, a newly formed investment vehicle wholly owned by the Ishbia family.
An additional $400 million is targeted through a rights offering for Class A shareholders, if needed, bringing the total potential raise to $2.05 billion.
Mat Ishbia, chairman, chief executive officer and president of UWMC, described the arrangement as more than a financial transaction.
"This is about bringing in a strategic partner that understands our business, understands MSRs, understands the mortgage industry and believes in the same long-term vision we have for UWM," he said.
Nick Basso, co-head of North America for Oaktree's Global Opportunities Group, called UWM's platform differentiated and said the firm looks forward to serving as a strategic partner.
UWM's board has agreed to add an Oaktree representative and granted the firm the right to nominate one additional independent director.
J.P. Morgan Securities is serving as financial adviser to UWMC; Wells Fargo Securities is advising Oaktree.
Separately, the board suspended UWM's quarterly dividend to prioritize debt reduction and balance-sheet strength.
Brokers and the origination engine
Total gain margin rose to 133 basis points in the second quarter, up from 123 bps in the first quarter and 113 bps in the same period a year ago.
Purchase originations reached $23.8 billion, up from $18.7 billion in the first quarter, while refinance originations of $15.9 billion declined from $26.3 billion as rate-sensitive volume cooled.
Available liquidity stood at approximately $1.3 billion, including $498.4 million in cash.
UWM's mortgage servicing rights portfolio also expanded, with unpaid principal balances reaching $247.6 billion at a weighted average coupon of 5.93%, up from $229.5 billion at the end of March.
The company has previously announced plans to bring nearly all loan servicing operations in-house by October.
The quarter also brought a string of product launches for brokers. UWM introduced home equity loans, expanded credit scoring options by becoming the first mortgage lender to offer both FICO and VantageScore 4.0 access for conventional loans, and rolled out Spanish-language support for Mia, its AI-powered assistant.
From inception through June 30, UWM originated $502 million in VantageScore loans, representing 87% of all VantageScore loan volume across the industry.
Industry executives interviewed by Mortgage Professional America have pointed to the wholesale channel's continued growth as retail-to-wholesale migration accelerates heading into 2026, a trend that forms the backbone of UWM's long-term market thesis.
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