UWM Holdings Corporation NYSE: UWMC

A securities class action has been filed on behalf of investors who purchased or otherwise acquired UWM Holdings Corporation (“UWM” or the “Company”) (NYSE: UWMC) securities between March 9, 2026 and August 5, 2026, inclusive (the “Class Period”).

UWM engages in the origination, sale, and servicing of residential mortgages. In December 2025, UWM and Two Harbors Investment Corp. signed an all-stock merger agreement valued at $1.3 billion to expand UWM's mortgage servicing rights business. In March 2026, Two Harbors terminated the agreement in favor of a competing cash offer from CrossCountry Mortgage, and agreed to pay UWM's termination fee.

The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) UWM had deviated from its traditional strategy of not hedging its mortgage servicing rights, taking on a major hedge position; (ii) UWM over-hedged in anticipation of the Two Harbors transaction; (iii) UWM's purported risk-balancing efforts had in fact created excess hedging risk; and (iv) as a result, defendants' positive statements about UWM's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On August 5, 2026, after the market closed, UWM reported second-quarter 2026 results, including a roughly $603.2 million interest rate derivatives loss that contributed to a $451.9 million net loss for the quarter, with total equity down 43.6% year-over-year. On an August 6, 2026 earnings call, CEO Mathew Ishbia disclosed: “We were over-hedged, if you think of it that way, protecting against the Two Harbors transaction... We don't traditionally hedge our MSRs [Mortgage Servicing Rights]... 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 happened... and then obviously, the Two Harbors transaction went away. And so a confluence of events... created a hedge loss.” On this news, UWM shares fell $0.64 per share, or 34.78%, from a closing price of $1.84 on August 5, 2026, to $1.20 on August 6, 2026.