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UWM Holdings Corporation

  • Company: UWM Holdings Corporation
  • Ticker: UWMC
  • Class Action Period: March 09, 2026 – August 05, 2026
30 Days Left Lead Plaintiff Deadline: October 13, 2026

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Background

In December 2025, UWM and Two Harbors Investment Corp. (“Two Harbors”) (owner of RoundPoint Mortgage Servicing) signed an all-stock merger agreement valued at $1.3 billion to expand UWM's mortgage servicing rights (MSRs).

However, in March 2026, Two Harbors terminated the UWM agreement after CrossCountry Mortgage stepped in with a competing cash offer and agreed to pay UWM's termination fee. UWM aggressively countered by raising its proposals, but Two Harbors' board repeatedly rebuffed these advances, leading to a brief mandated negotiation waiver period in June 2026 that expired without a new deal.

On August 5, 2026, after the market closed, UWM reported second quarter fiscal year 2026 financial results, including a $603.2 million interest rate derivatives loss which contributed to a $451.9 million second-quarter net loss. Total equity also fell 43.6% year over year, reflecting the net loss and derivative-related charges.

Then, on August 6, 2026, at 10:30 AM EDT, the Company held an earnings call in connection with its second quarter 2026 financial results. During that call, Chief Executive Officer Mathew Ishbia (“Ishbia”) disclosed “We were over-hedged, if you think of it that way, protecting against the Two Harbors transaction.” Ishbia further stated “[w]e don't traditionally hedge our MSRs [Mortgage Servicing Rights]” but “when you're going through and acquiring a company like Two Harbors and a massive MSR book . . . it created a little more risk. So . . . we did put a hedge on to protect against that risk and then a lot of things happen[ed] . . . and then obviously, the Two Harbors transaction went away. And so a confluence of events that created a hedge loss.”

On this news, shares of UWM Holdings fell $0.64 or 34.78% to close at $1.20 on August 6, 2026, thereby injuring investors.

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