UWM Shares Jump 15%, Adding $83 Million, After Mortgage Lender Returns To Profit
The lender posted third-quarter net income of $212.6 million, reversing a second-quarter loss, even as originations fell again.
UWM Holdings, the parent of a mortgage lender that works only through independent brokers, reported third-quarter net income of $212.6 million on Wednesday, reversing a $451.9 million loss in the second quarter as servicing income climbed. Shares rose 15.09% to $1.83 in Wednesday trading, as of 9:53 a.m. ET, adding about $83 million in market value.
Servicing lifts the quarter
Sales slipped to $811.1 million from $888.0 million the prior quarter. Adjusted EBITDA was $178.3 million, and adjusted diluted earnings per share were $0.10.
Originations fell for a second straight quarter, to $33.4 billion, split between $10.6 billion of refinancing and $22.8 billion of purchase loans.
The unpaid principal balance of mortgage servicing rights, which UWM earns by collecting payments on loans it has sold, stood at $269.8 billion on Sept. 30, up from $247.6 billion at June 30.
A broker-only lender
UWM Holdings owns United Wholesale Mortgage, which makes loans only through independent mortgage brokers, never directly with borrowers. It focuses mainly on conforming and government-backed loans and pools them for sale through Fannie Mae, Freddie Mac and Ginnie Mae. It earns money from originating and selling loans and from servicing rights.
As of Dec. 31, 2025, it worked with over 13,000 broker businesses and had about 9,100 team members.
Down 64% this year
The stock was down about 64% year to date at Tuesday's close, while the S&P 500 was up about 11%. It had still risen 26% over the prior month, though it sat 74% below its highest close of the past year, set on Jan. 16.
Wednesday's gain was on pace to be its biggest in a day since Oct. 23, when the stock rose 26.1%.
UWM also faces a lawsuit it filed Monday seeking more than $500 million from Two Harbors Investment. UWM alleges Two Harbors sabotaged a $1.3 billion all-stock merger.
The Two Harbors suit, seeking more than $500 million, is the other open item on UWM's ledger as it rebuilds profit from servicing.
Sources
- UWM Holdings reports Q3 results | Seeking Alpha — seekingalpha.com
- Bond v. UWM Holdings Corporation et al — law360.com
- UWM Holdings Corp. et al v. Two Harbors Investment Corp. — law360.com
- UWM Holdings Corporation Announces Third Quarter 2026 Results — businesswire.com
- The company's filing (UWM Holdings) — SEC filing
- UWM Holdings — Form 10-Q for the quarter ended 2026-06-30 (quarterly results) — SEC EDGAR
