Real Estate
Home›Real Estate›Mortgages›UWM posts $451.9 million net loss after rate-derivativ…
UWM posts $451.9 million net loss after rate-derivatives hit
The lender suspended its dividend and received a $2.05 billion capital injection from Oaktree alongside a move to unwind a Two Harbors deal.
United Wholesale Mortgage posted a $451.9 million net loss after a quarterly hit tied to interest rate derivatives, following a $603.2 million loss over three months tied to rate bets, according to its second-quarter SEC filing summarized by Yahoo Finance.
The company also suspended its dividend and announced a $2.05 billion capital injection, with Yahoo Finance reporting that Oaktree Capital Management is involved in the rescue package. The outlet notes that the losses did not change consumers’ mortgage loan availability, but they highlight stress tied to how UWM hedged interest-rate exposure.
Yahoo Finance said UWM is tied to a separate deal dynamic with Two Harbors Investment Corp., a REIT built around mortgage servicing rights. Servicing rights revenue can be disrupted when rates fall and refinances reduce the existing loan base, so UWM hedged the servicing book it planned to acquire.
In the reporting, UWM had signed a deal on Dec. 17, 2025, to buy Two Harbors for about $1.3 billion in stock, but the hedge did not work after the 10-year Treasury yield rose. Two Harbors terminated the agreement in March and accepted a cash offer from CrossCountry Mortgage, and UWM is now pursuing the matter in court, Yahoo Finance said.