UWM Suspends Dividend After $452 Million Loss, Secures $2 Billion Capital Infusion
Updated
Updated · Financial Times · Aug 12
UWM Suspends Dividend After $452 Million Loss, Secures $2 Billion Capital Infusion
3 articles · Updated · Financial Times · Aug 12
Summary
$452 million in quarterly net losses pushed UWM to halt its common-stock dividend and line up a $2 billion preferred-equity and warrants investment from the Ishbia family and Oaktree Capital.
A $603 million writedown on a derivative tied to UWM's failed Two Harbors acquisition attempt drove the surprise loss, extending pressure on a stock already down more than 70% over the past year.
The rescue package is set to be followed by a $400 million rights offering in October, underscoring how sharply the lender's balance sheet and funding position have deteriorated.
UWM's setback highlights broader strains in non-bank mortgage lending, where earnings remain highly exposed to interest-rate swings, volatile origination volumes and hard-to-hedge servicing assets.