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Mortgage brokers say UWM operations remain unchanged after Q2 loss

UWM reported a $451.9 million second-quarter loss, largely tied to a $603.2 million derivatives hit tied to its failed Two Harbors acquisition, while brokers say day-to-day processing continues quickly.

Reported · Written up by our desk · Mortgages

Mortgage brokers working with United Wholesale Mortgage say it is “business as usual” after the lender posted a $451.9 million second-quarter loss and announced a $2.05 billion capital raise, according to HousingWire.

Brokers said their loan pipeline has not noticeably changed from a day-to-day perspective, even though UWM is no longer the sharpest on price for some borrowers. They said the wholesale channel continues to rely on UWM for its technology, fast turn times, and capacity to handle large pipelines, HousingWire reported.

HousingWire reported that the loss was driven largely by a $603.2 million derivatives loss tied to UWM’s failed acquisition of Two Harbors Investment Corp. The capital raise included funding from distressed debt investor Oaktree Capital Management, and brokers said the changes have put UWM’s balance sheet and strategy under scrutiny.

Several brokers interviewed by HousingWire said pricing on UWM has slipped compared with other wholesale lenders, while still choosing it for operational efficiency. One broker said their submissions are processed and underwritten right away once loans are submitted, and another said their pricing comparison set now ranks UWM much lower than in earlier weeks.

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