UWMC CLASS ACTION NOTICE: The Law Offices of Frank R. Cruz Files Securities Fraud Lawsuit Against UWM Holdings Corporation

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that it has filed a class action lawsuit in the United States District Court for the Eastern District of Michigan, captioned Doug Bond v. UWM Holdings Corporation, et al., Case No. 2:26-cv-12862-BRM-APP, on behalf of persons and entities that purchased or otherwise acquired UWM Holdings Corporation (“UWM” or the “Company”) (NYSE: UWMC) securities between March 9, 2026 and August 5, 2026, inclusive (the “Class Period”). Plaintiff pursues claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”).

Investors are hereby notified that they have until 60 days from this notice to move the Court to serve as lead plaintiff in this action.

IF YOU SUFFERED A LOSS ON YOUR UWM HOLDINGS INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.

What Happened?

In December 2025, UWM and Two Harbors Investment Corp. (“Two Harbors”) (owner of RoundPoint Mortgage Servicing) signed an all-stock merger agreement valued at $1.3 billion to expand UWM's mortgage servicing rights (MSRs).

However, in March 2026, Two Harbors terminated the UWM agreement after CrossCountry Mortgage stepped in with a competing cash offer and agreed to pay UWM's termination fee. UWM aggressively countered by raising its proposals, but Two Harbors' board repeatedly rebuffed these advances, leading to a brief mandated negotiation waiver period in June 2026 that expired without a new deal.

On August 5, 2026, after the market closed, 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. Total equity also fell 43.6% year over year, reflecting the net loss and derivative-related charges.

Then, on August 6, 2026, at 10:30 AM EDT, the Company held an earnings call in connection with its second quarter 2026 financial results. During that call, Chief Executive Officer Mathew Ishbia (“Ishbia”) disclosed “We were over-hedged, if you think of it that way, 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, thereby injuring investors.

What Is The Lawsuit About?

The complaint filed in this class action alleges that between March 9, 2026 and August 5, 2026, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

If you purchased or otherwise acquired UWM Holdings Corporation securities during the Class Period, you may move the Court no later than 60 days from the date of this notice to ask the Court to appoint you as lead plaintiff.

Contact Us To Participate or Learn More:

If you wish to learn more about this action or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:

Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: [phone]
Email: [e-mail]
Visit our website at: www.frankcruzlaw.com

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