UWM Originates $39.7 Billion in Q2 as Revenue Rises 17% and Gain Margin Expands

United Wholesale Mortgage originated $39.7 billion in mortgages during the second quarter of 2026, holding production essentially flat from a year earlier while generating higher revenue and a wider gain margin.

UWM Holdings Corp., the publicly traded parent of United Wholesale Mortgage, reported $888 million in total revenue for the quarter ended June 30, up about 17% from $758.7 million in the second quarter of 2025. Total gain margin increased to 133 basis points from 113 basis points a year earlier and 123 basis points in the first quarter.

The results show continued strength in UWM’s core mortgage-production business even as a large interest-rate derivative loss pushed the company to a $451.9 million GAAP net loss for the quarter.

Adjusted EBITDA, which excludes several items including changes in certain mortgage servicing rights valuations and gains or losses on other interest-rate derivatives, was $185.9 million. That was up about 15.5% from $160.9 million in the first quarter, although down about 5% from $195.7 million a year earlier.

“The second quarter was another quarter where we demonstrated the scale of our origination engine and industry leadership,” Chairman and CEO Mat Ishbia said in the company’s earnings release.

Purchase lending rebounds from the first quarter

UWM’s $39.7 billion of second-quarter originations was almost identical to the $39.7 billion originated in the second quarter of 2025, although it declined from $44.9 billion in the first quarter of 2026.

The mix shifted considerably.

Purchase originations reached $23.8 billion, rising about 27% from $18.7 billion in the first quarter. Purchase volume remained roughly 13% below the $27.3 billion UWM produced in the year-earlier quarter.

Refinance production moved in the opposite direction sequentially. UWM originated $15.9 billion of refinance loans, down about 39% from $26.3 billion in the first quarter but up approximately 28% from $12.4 billion a year earlier.

For the first six months of 2026, UWM originated $84.6 billion, up from $72.1 billion during the same period of 2025. The increase came primarily from refinancing: first-half refinance volume rose to $42.2 billion from $23.0 billion a year earlier, while purchase originations declined to $42.4 billion from $49.0 billion.

The production mix underscores UWM’s ability to capture refinance activity when rates create opportunities while retaining substantial purchase volume through its wholesale broker network.

Higher gain margin lifts loan-production economics

UWM generated $527.2 million of loan-production income during the second quarter, compared with $447.9 million a year earlier.

That improvement came despite virtually unchanged year-over-year origination volume, reflecting the increase in total gain margin to 133 basis points.

The 20-basis-point year-over-year expansion is significant for a lender operating at UWM’s scale. Applied across nearly $40 billion of quarterly production, changes in margin can materially affect production revenue even when overall loan volume does not increase.

Loan servicing income also rose to $220.5 million from $178.8 million a year earlier, while interest income increased to $140.3 million from $132.0 million. Together, those businesses helped push total revenue to $888 million.

$603 million derivative loss drives GAAP loss

The quarter’s headline net loss was primarily shaped by UWM’s interest-rate positioning rather than a deterioration in mortgage-production revenue.

UWM recorded a $603.2 million loss on other interest-rate derivatives during the second quarter, compared with a $208.9 million gain in the same category a year earlier. The company said in its Form 10-Q that the loss was primarily attributable to rising and volatile interest rates during the quarter. A significant portion of the derivative positions had been entered into near the end of the first quarter and during the second quarter.

UWM also recorded a $122.7 million decline in the fair value of its mortgage servicing rights during the quarter. Combined, other gains and losses totaled a negative $725.9 million.

The resulting GAAP net loss was $451.9 million, compared with net income of $170.4 million in the first quarter and $314.5 million in the second quarter of 2025.

The derivative position was connected to UWM’s unsuccessful effort to acquire Two Harbors Investment Corp. Ishbia said during the company’s earnings discussion that UWM had effectively become over-hedged while protecting against the proposed Two Harbors transaction, according to National Mortgage Professional.

UWM’s regulatory filing shows that it exited a significant number of interest-rate derivative positions during the quarter. As of June 30, the remaining “other interest rate derivatives” carried $12.8 billion of notional exposure.

That distinction matters when assessing the quarter: the derivative loss materially affected reported GAAP earnings, while UWM’s underlying production revenue, gain margin and sequential adjusted EBITDA all showed stronger operating trends.

Servicing portfolio grows to nearly $248 billion

UWM continued expanding its mortgage servicing rights portfolio.

The unpaid principal balance of loans underlying its MSRs reached $247.6 billion at June 30, up from $229.5 billion at the end of the first quarter and $211.2 billion a year earlier. That represents year-over-year growth of about 17%.

The weighted average interest rate on the serviced portfolio was 5.93%, compared with 5.51% a year earlier. UWM also said 95% of its second-quarter loan sales were servicing-retained.

Growing the servicing portfolio provides recurring servicing income and can provide a natural offset to the origination business in rising-rate environments, since higher rates generally slow prepayments and increase the expected life and value of servicing assets. UWM describes its origination operation as a natural hedge to its MSRs because origination activity generally strengthens when rates decline.

UWM adds capital and suspends dividend

Alongside its earnings announcement, UWM unveiled a strategic capital partnership with Oaktree Capital Management and the Ishbia family aimed at strengthening its balance sheet and reducing leverage.

The transaction calls for $1.65 billion of preferred equity capital to be funded at closing. UWM also plans a $400 million rights offering to Class A shareholders, supported by Oaktree and the Ishbia family if needed, bringing the potential capital package to $2.05 billion.

UWM said proceeds will primarily be used to repay existing debt and mortgage servicing rights financing facilities and increase financial flexibility. Oaktree will also receive board representation as part of the partnership.

The company simultaneously suspended its quarterly common-stock dividend as it prioritizes debt reduction and balance-sheet strength.

The capital actions follow a sharp increase in leverage during the quarter. UWM ended June with approximately $1.0 billion of total equity, down from $1.6 billion at March 31, while non-funding debt increased to $6.04 billion from $5.09 billion. Its non-funding debt-to-equity ratio consequently increased to 6.13 from 3.18.

UWM reported approximately $1.3 billion of available liquidity at quarter-end, including $498.4 million of cash and available borrowing capacity.

UWM keeps investing in the broker channel

Despite the balance-sheet actions, UWM said it intends to continue investing in independent mortgage brokers, technology, artificial intelligence and servicing.

During the second quarter, the lender expanded its AI-powered Mia assistant, introduced home equity loans and continued rolling out VantageScore 4.0 for conventional mortgages. UWM said it originated $502 million of VantageScore loans through June 30 and represented 87% of industry VantageScore volume over that period. That figure is a company-reported market-share claim.

The broader second-quarter picture is therefore split between two distinct developments.

UWM’s mortgage operation generated nearly $40 billion of volume, higher year-over-year revenue and improved gain margin, while its servicing portfolio continued to expand. At the same time, the derivative loss associated with its interest-rate risk strategy reduced equity and accelerated the need to strengthen the balance sheet.

The next test will be whether UWM can preserve its production scale and expanded margins while using the new capital structure to reduce leverage. For brokers and competitors, the operational numbers suggest the company remains committed to competing aggressively through the wholesale channel even after a volatile quarter for its balance sheet.