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UWM faces securities fraud probe after $451.9 million Q2 net loss
UWM said a $603.2 million derivatives loss tied to a terminated mortgage servicing rights deal contributed to the quarter’s $451.9 million net loss, while the company raised $1.65 billion in preferred equity and announced a $400 million rights offering.
UWM Holdings reported a $451.9 million net loss for the second quarter of 2026, attributing the result in part to a $603.2 million derivatives loss tied to a terminated mortgage servicing rights deal. The losses were linked to a hedge the company established around an attempted acquisition of Two Harbors Investment Corp.’s mortgage servicing rights portfolio, HousingWire reported.
A law firm, the Law Offices of Frank R. Cruz, opened a securities fraud investigation into potential federal securities law violations. HousingWire said no lawsuit has been filed yet, and the firm is seeking information from investors who purchased UWM securities and may have sustained losses.
UWM also disclosed that total equity fell 43.6% year over year, reflecting the quarter’s loss and related derivative charges. Shares dropped 34.78% to close at $1.20 on Thursday, as analysts moved to adjust their expectations.
On the capital side, UWM raised $1.65 billion in preferred equity, including $1.5 billion from Oaktree Capital Management and $150 million from an Ishbia family vehicle, alongside a $400 million rights offering. HousingWire reported the preferred equity deal includes specific dividend and liquidation features, with proceeds earmarked for debt repayment.