Archive · 7 Aug 2026
Ishbia's United Wholesale Mortgage Suffers Record Drop on Dividend Halt
United Wholesale Mortgage is a big company that helps people borrow money to buy homes.
Recently, it had a very bad quarter and lost a huge amount of money, $452 million.
Because of that, it stopped giving its owners their usual money payments, called dividends, for the first time ever.
Many people who own small pieces of the company got nervous.
The price of those pieces, called shares, fell by almost half in a single day.
To help fix things, the company is getting $2.05 billion in new money.
Most of it comes from a big investment company called Oaktree.
The boss, Mat Ishbia, says this will make the company stronger and safer.
But some people worry that Oaktree might get too much control in the future.
Earlier, the company tried to buy another company but failed, and that mistake also cost it a lot of money.
United Wholesale Mortgage shares plunged as much as 49% on Thursday, a record drop since its 2021 SPAC listing, and were down about 40% by mid-afternoon.
The company posted a $452 million net loss, its largest ever, and suspended its 10-cent quarterly shareholder dividend for the first time.
UWM announced a $2.05 billion equity capital investment led by Oaktree Capital Management and SFS Group Capital, an Ishbia family vehicle.
The loss was driven in part by a $603 million hit on interest-rate hedges tied to its failed takeover bid for Two Harbors Investment Corp.
Oaktree received preferred stock paying at least 10% annually plus warrants for roughly 18% of UWM's equity, and could take majority board control and pursue liquidation if it still holds preferred shares in seven years.
- Who
- Mat Ishbia, CEO of United Wholesale Mortgage and majority owner of the NBA's Phoenix Suns, along with investors including Oaktree Capital Management.
- What
- UWM reported a record $452 million net loss, suspended its dividend for the first time, and announced a $2.05 billion capital investment, sending shares down as much as 49%.
- When
- Thursday, the trading day covered in the article.
- Where
- Not stated in the articles.
- Why
- Investors reacted to the record loss, the first-time dividend suspension, and a dilutive capital raise, compounded by a $603 million hedge loss tied to the failed Two Harbors acquisition.
Company & Management View
Investors' Concerns
Oaktree capital deal
Company & Management View
Ishbia says the investment makes UWM 'stronger, more liquid and better positioned to win' and brings in a strategic partner that understands the business.
Investors' Concerns
The record 49% stock plunge signaled investor alarm over dilution and Oaktree's terms, including potential majority board control and liquidation if it still holds preferred shares in seven years.
Two Harbors merger attempt
Company & Management View
UWM argued its all-cash offer had a higher headline price and would have significantly diversified the company's revenue stream.
Investors' Concerns
Two Harbors management lobbied against the deal, citing concerns about the value of the stock portion, and shareholders accepted a rival all-cash bid.
- Company
- United Wholesale Mortgage (UWM), the country's biggest mortgage lender
- One-day stock drop
- Up to 49% (record); trading down about 40% on the day
- Net loss
- $452 million (largest ever)
- Dividend
- 10 cents per quarter, suspended for the first time since going public
- Capital investment
- $2.05 billion from Oaktree Capital Management and SFS Group Capital
- Oaktree terms
- 1.5 million preferred shares with at least 10% annual dividend; warrants for about 18% of equity
- Hedge loss
- $603 million tied to failed Two Harbors acquisition
- Year-to-date share decline
- 75%