Robbins LLP is Investigating Allegations that UWM Holdings Corporation Over-Hedged Itself in Anticipation of its Acquisition of Two Harbors Investment Corp.

Robbins LLP informs investors that a class action was filed on behalf of all persons and entities who purchased or otherwise acquired UWM Holdings Corporation (NYSE: UWMC) securities between March 9, 2026 and August 5, 2026 (the "Class Period"). UWM engages in the origination, sale, and servicing of residential mortgage loans in the United States.

Why Was UWM Sued?

The complaint alleges that UWM and Two Harbors Investment Corp. signed an all-stock merger agreement valued at $1.3 billion to expand UWM's mortgage servicing rights in December 2025.

In March 2026, Two Harbors terminated the agreement after CrossCountry Mortgage came in with a competing cash offer and agreed to pay UWM's termination fee.

Specifically, the complaint alleges that defendants failed to disclose that:

(1) the Company had deviated from its traditional strategy of not hedging its mortgage servicing rights to take a major hedge position;

(2) the Company over-hedged itself in anticipation of the Two Harbors transaction;

(3) the Company’s purported efforts to balance its risk in fact created an excess hedging risk; and

(4) that defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Why Did UWMC Stock Drop?

Plaintiff contends that on August 5, 2026, UWM reported second quarter fiscal year 2026 financial results, including a $603.2 million interest rate derivatives loss which contributed to a $451.9 million second-quarter net loss and derivative-related charges.

On the Company's earnings call on August 6, 2026, CEO Mathew Ishbia disclosed that UWM was "over-hedged … protecting against the Two Harbors transaction." Ishbia further stated “[w]e don't traditionally hedge our MSRs [Mortgage Servicing Rights]” but “when you're going through and acquiring a company like Two Harbors and a massive MSR book… it created a little more risk. So . . . we did put a hedge on to protect against that risk and then a lot of things happen[ed]…and then obviously, the Two Harbors transaction went away. And so a confluence of events that created a hedge loss.” On this news, shares of UWM Holdings fell $0.64 or 34.78% to close at $1.20 on August 6, 2026.

Who May Be Eligible?

The lawsuit seeks to represent investors who purchased or otherwise acquired UWM Holdings Corporation securities during the applicable Class Period. If you purchased UWM Holdings Corporation during this period and suffered investment losses, you may have rights under the federal securities laws. Submit a form for Information.

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