PONTIAC, Mich. — Shares of United Wholesale Mortgage Holdings Corp. plunged a record 49% Thursday after the nation’s largest mortgage lender reported a $452 million net loss, suspended its quarterly dividend for the first time since becoming a public company and announced a $2.05 billion capital investment, Bloomberg reported.
According to Bloomberg, the investment will come from Oaktree Capital Management and SFS Group Capital, a new investment vehicle owned by UWM CEO Mat Ishbia and his family.
“We’re taking decisive action to make UWM stronger, more liquid and better positioned to win for years to come,” Ishbia said in a statement. “This is not just about capital. 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.”
UWM experienced rapid growth during the COVID-19 pandemic, Bloomberg noted, when historically low interest rates fueled a surge in home buying and mortgage refinancing. However, the company has faced mounting pressure as higher interest rates and a cooling housing market have sharply reduced mortgage origination activity.
Failed Acquisition
Earlier this year, UWM’s effort to acquire mortgage servicer Two Harbors failed after the target’s management questioned the value of the stock component of the proposed transaction, Bloomberg reported. The acquisition was expected to diversify UWM’s revenue through mortgage servicing.
The company also suspended its quarterly dividend, ending a streak of 10-cent-per-share quarterly payments that began after UWM went public through a special purpose acquisition company merger in 2021.
According to Bloomberg, the Ishbia family has been the primary beneficiary of those dividends. Through a family-controlled holding company, the family received more than $6.2 billion in dividend payments through the first quarter of 2026, based on Bloomberg’s calculations.
