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Back of Napkin

UWM Holdings Corporation UWMC

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UWM lost $80.6M last quarter because interest rates moved against $603.2M of hedges it had just put on.

Its actual lending business improved: the margin on every loan it made rose from 1.13% to 1.33%.

UWMC · price with moving averages

Daily · 6MWeekly · 3Y
$1$3$5$8$10 Sep '23Apr '24Nov '24Jun '25Jan '26Aug '26 BID
EMAs82140

Source: market data.

The business

UWM is the largest mortgage lender in the United States and it sells nothing directly to borrowers. Every loan comes through an independent broker, which is the wholesale channel, and UWM has been the largest wholesale lender for eleven consecutive years. It then keeps the servicing on almost every loan it sells, collecting a fee for handling the payments.

That combination, originate through brokers and retain servicing, is a deliberate bet that brokers win share from retail banks over time. It also means UWM never pays for a branch network or a loan officer's salary; the broker does the selling and takes a share of the fee.

Inside the complete Back of Napkin

  1. 01The business
  2. 02The numbers
  3. 03Management
  4. 04How it fails or surprises you
  5. 05The shape of the payoff
  6. 06Closing thoughts
  7. 07Methodology

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