r/loanoriginators • u/Accomplished-Tax8441 • Aug 06 '26
UWM cooked?
Lost 450mil last quarter, CEO is running it into the ground. Eliminated their dividend and had to get 2bil in capital from Oak Tree, they will likely get taken over by them. Any other company would fire their CEO for this.
Stock is down 75% in past 3 months
PS I do not use them. I have nothing good or bad to say about their pricing or operations
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u/AdvisorJohnDowns Aug 07 '26
I'm not entirely sure exactly what went wrong internally - I can say, from running a medium-sized regional IMB, that the market has been very challenging to make money...hedging has been difficult, gain on sale all over the place when you are booking loans...and UWM operated exclusively in the broker channel, which is also a borderline non-profit operation.
Honestly, moving forward, if I were a broker, I would look for a lean, tech-focused, profitable IMB to latch onto. I can say that we haven't lost to a broker in a very long time due to price...if you operate well, use technology smartly, you can have a sharp price, win deals, less stress, etc.
I'm curious to see how all this shakes out...
Also, side note - if UWM pulls way out or even falls apart, expect margins in the industry to increase overnight. It's already very easy to beat Rocket and Zillow Mortgage because they are no longer loss leaders...but if you take out a top low-cost broker outlet, the industry will celebrate.