After loss and capital raise, brokers stick with UWM on service

After loss and capital raise, brokers stick with UWM on service

Mortgage brokers working with United Wholesale Mortgage (UWM) say it remains “business as usual” following the lender’s second-quarter loss and a multibillion-dollar capital raise, with no noticeable impact so far on day-to-day loan production. The Pontiac, Michigan-based wholesale lender reported last week that it lost $451.9 million in the second quarter, driven largely by a $603.2 million derivatives loss tied to its failed acquisition of Two…

UWM's derivatives strategy questioned after $603.2M hedging loss - Boston Real Estate Investors Association

United Wholesale Mortgage (UWM)’s strategy to protect assets is under scrutiny following recent analyses of public filings, which questions whether the lender’s derivatives book functioned as a true hedge or as a bet that amplified existing risks. Last week, UWM reported a $451.9 million net loss for the second quarter, including a $603.2 million derivatives […] The post UWM's derivatives strategy questioned after $603.2M hedging loss appeared f…