UWM Holdings announced a $2.05 billion equity capital investment from Oaktree Capital Management and an investment vehicle owned by the Ishbia family as the mortgage lender moves to strengthen liquidity and reduce balance-sheet pressure.
The investment will be provided by Oaktree and SFS Group Capital, a newly formed investment vehicle wholly owned by the Ishbia family.
UWM did not disclose how the investment will be divided between the two parties, the type of securities being issued, the purchase price, resulting ownership percentages, voting rights, board representation, or expected closing date.
The capital commitment was announced alongside UWM’s second-quarter 2026 results and a decision by the company’s board to suspend its quarterly dividend.
Management said the dividend decision reflected a disciplined approach to capital allocation and that the company would continue evaluating future capital-return opportunities as conditions evolve.
The combination of the equity investment and dividend suspension represents a substantial change in UWM’s capital strategy.
The $2.05 billion investment equals more than twice UWM’s $985.3 million of reported equity at the end of June.
It also exceeds the company’s approximately $1.3 billion of available liquidity, which included $498.4 million of cash and unused capacity under secured and unsecured credit facilities.
The planned transaction could materially improve UWM’s leverage position, depending on its final terms and how the proceeds are used.
UWM ended the second quarter with $6.04 billion of non-funding debt, compared with $5.09 billion at the end of March and $3.32 billion one year earlier.
Its non-funding debt-to-equity ratio increased to 6.13 times from 3.18 times sequentially and 1.90 times during the prior-year quarter.
In a simplified calculation, adding the full $2.05 billion investment to equity while leaving debt unchanged would increase equity to approximately $3.04 billion.
That would reduce the non-funding debt-to-equity ratio to roughly two times.
The actual impact could differ materially depending on the security structure, transaction expenses, ownership terms, and whether UWM uses part of the proceeds to repay debt.
Secured credit-line borrowings reached $2.95 billion at the end of June, increasing from $2 billion at the end of March and $1.2 billion at the end of 2025.
Senior notes totaled approximately $2.98 billion.
The equity investment follows a quarter in which UWM reported a substantial GAAP loss despite higher revenue and improved loan-production margins.
Total revenue increased approximately 17% to $888 million from $758.7 million during the prior-year quarter.
Loan-production income increased to $527.2 million from $447.9 million, while servicing income rose to $220.5 million from $178.8 million.
UWM nevertheless reported a net loss of $451.9 million, compared with net income of $314.5 million one year earlier.
Adjusted net loss reached $366.8 million, while adjusted diluted loss per share was $0.23.
The reported diluted loss per share was $0.24.
The loss was primarily caused by changes in the value of UWM’s interest-rate hedges and mortgage-servicing assets.
The company recorded a $603.2 million loss on other interest-rate derivatives and a $122.7 million reduction in the fair value of mortgage-servicing rights.
Combined other losses reached approximately $725.9 million, equal to about 82% of quarterly revenue.
UWM’s adjusted EBITDA calculation excludes the loss on other interest-rate derivatives and the change in MSR value resulting from valuation inputs or assumptions.
Adjusted EBITDA reached $185.9 million, compared with $160.9 million during the first quarter and $195.7 million during the prior-year quarter.
The difference between the $451.9 million GAAP net loss and positive adjusted EBITDA demonstrates the sensitivity of mortgage-company earnings to interest-rate movements, derivatives, and mortgage-servicing-right valuations.
Interest expense also increased to $158.9 million from $133.5 million a year earlier.
Interest expense on non-funding debt reached $86.8 million, compared with $50.8 million during the prior-year quarter.
Of the consolidated net loss, $371.3 million was attributable to noncontrolling interests.
The loss attributable directly to UWMC was $80.6 million.
Mortgage-origination volume remained nearly unchanged from the previous year.
UWM originated $39.7 billion of loans, compared with approximately $39.7 billion in the second quarter of 2025.
Volume declined sequentially from $44.9 billion.
The composition of originations changed significantly.
Purchase originations declined to $23.8 billion from $27.3 billion one year earlier but increased from $18.7 billion during the first quarter.
Refinancing volume increased to $15.9 billion from $12.4 billion a year earlier but declined from $26.3 billion sequentially.
Refinancing represented approximately 40% of second-quarter originations, compared with roughly 31% during the prior-year period.
UWM generated higher loan-production revenue from essentially unchanged total volume because its gain margin improved.
Total gain margin expanded to 133 basis points from 113 basis points a year earlier and 123 basis points during the first quarter.
Higher operating expenses partly offset the improved margin.
Direct loan-production costs increased approximately 56% to $72.2 million.
General and administrative expenses increased approximately 50% to $89.7 million, while servicing costs rose about 42% to $49.7 million.
UWM’s mortgage-servicing portfolio continued expanding.
The unpaid principal balance of its mortgage-servicing rights reached $247.6 billion, increasing from $229.5 billion sequentially and $211.2 billion one year earlier.
The portfolio’s weighted-average coupon increased to 5.93%, while its average age declined to 12 months from 19 months.
The balance-sheet value of UWM’s mortgage-servicing rights increased to $5.31 billion from $3.45 billion one year earlier.
Those assets represented nearly 30% of the company’s $17.94 billion in total assets.
UWM also continued expanding its use of alternative credit scores.
The company originated $502 million of loans using VantageScore through June 30 and said that represented 87% of all VantageScore mortgage volume across the industry.
The company enhanced Mia, its AI-powered assistant, with on-demand customer-engagement options and Spanish-language support.
UWM also launched home-equity loans to give brokers additional products for homeowners seeking to access existing property equity.
The $2.05 billion investment positions UWM to address the leverage and liquidity pressures created by its growing servicing portfolio, increased borrowing, dividend obligations, and earnings volatility.
However, the transaction’s effect on existing shareholders cannot be determined until UWM discloses the investment’s security type, price, conversion terms, ownership percentages, and governance provisions.
The participation of SFS Group Capital means the Ishbia family is contributing additional capital alongside Oaktree while maintaining a significant economic commitment to the company.
Oaktree provides UWM with a strategic institutional partner that management said understands mortgage-servicing rights, the mortgage industry, and the company’s long-term strategy.
The suspension of the quarterly dividend preserves additional cash as UWM works to complete the investment and strengthen its financial position.
KEY QUOTES:
“The second quarter was another quarter where we demonstrated the scale of our origination engine and industry leadership, as well as our continued commitment to serving the broker channel.”
“I am also excited to announce our partnership with Oaktree. We’re taking decisive action to make UWM stronger, more liquid and better positioned to win for years to come.”
“This is not just about capital. This is about bringing in a strategic partner that understands our business, understands MSRs, understands the mortgage industry and believes in the same long-term vision we have for UWM.”
Mat Ishbia, Chairman, Chief Executive Officer And President Of UWM Holdings Corporation
