UWM Holdings Corporation faces a securities fraud investigation following significant losses tied to a failed acquisition. The Law Offices of Frank R. Cruz announced the probe on behalf of investors. On 6 August 2026, UWM reported a $603.2 million derivatives loss from a hedge related to its unsuccessful Two Harbors acquisition. This contributed to a $451.9 million second-quarter net loss. Chief executive Mathew Ishbia acknowledged the company was "over-hedged" to protect against risks from acquiring Two Harbors' mortgage servicing rights portfolio. Following the announcement, UWM shares plummeted 34.78%, closing at $1.20. The law firm is urging shareholders who lost money to contact them regarding potential securities law violations.

UWM Holdings Corporation announced a $2 billion capital raise, described as the largest in mortgage history, bringing total equity from approximately $1 billion to over $3 billion. The raise comes through a partnership with Oaktree, leveraging their expertise in mortgage servicing rights and capital markets. The company generated over $180 million in operating income and $40 billion in business despite challenging market conditions. Management suspended dividends to prioritise equity retention and debt ratio reduction. A significant hedge loss occurred due to an over-hedged position and macro volatility. Management has ceased MSR hedging, returning to a natural hedge strategy. Non-funding debt-to-equity ratios spiked to 5.6x but are expected to decline to 1.2x following the capital infusion. UWM's origination capacity can handle $250 billion to $300 billion annually if interest rates drop.

United Wholesale Mortgage, America's largest mortgage lender, saw its shares plummet a record 49% on Thursday after reporting a $452 million net loss and suspending its dividend for the first time since going public in 2021. The company announced a $2.05 billion equity investment from Oaktree Capital Management and SFS Group Capital, an investment vehicle owned by CEO Mat Ishbia and his family. Ishbia described the move as bringing in a strategic partner that understands the mortgage industry. UWM expanded rapidly during the pandemic housing boom but has faced pressure as demand for mortgages slowed. An attempted acquisition of mortgage servicer Two Harbors earlier this year fell through. Shares have fallen 76% year to date.