Cases & Investigations
UWM Holdings Corporation Investigation
Type: Investigations
Case Number: 26-cv-12862
Lead Plaintiff Deadline: 10/13/2026
Class Period: March 9, 2024 - August 5, 2026
Class Period End Date: 08/05/2026
Defendant(s): UWM Holdings Corporation
Stock Symbol: NYSE: UWMC
Court: United States District Court for the Eastern District of Michigan
The action is brought on behalf of investors who purchased or otherwise acquired UWM common stock between March 9, 2024 and August 5 2026, inclusive. The deadline to seek appointment as lead plaintiff is October 13, 2026.
The case, Doug Bond v. UWM Holdings Corporation, No. 26-cv-12862, is pending in the United States District Court for the Eastern District of Michigan.
WHAT IS THE CASE ABOUT?
The lawsuit centers on UWM’s interest-rate hedging strategy in connection with its proposed acquisition of Two Harbors Investment Corp. and whether investors were adequately informed that UWM had substantially departed from its traditional approach to managing the interest-rate risk associated with its mortgage servicing rights (“MSRs”).
UWM agreed to acquire Two Harbors, the owner of RoundPoint Mortgage Servicing, in December 2025 in an approximately $1.3 billion all-stock transaction. The transaction was subsequently terminated after Two Harbors accepted a competing offer.
According to the complaint, UWM historically relied principally on its mortgage-origination business as a natural hedge against changes in the value of its MSRs and did not traditionally hedge its MSR portfolio.
The complaint alleges, however, that while the Two Harbors transaction was pending, UWM departed from that traditional strategy and established a significant interest-rate hedge to protect against the additional risk associated with the large MSR portfolio it expected to acquire.
The lawsuit alleges that UWM failed to adequately disclose to investors that:
- UWM had deviated from its traditional strategy of not hedging its mortgage servicing rights and had taken a significant hedge position;
- UWM had become over-hedged in anticipation of completing the Two Harbors acquisition;
- UWM’s effort to reduce the risk associated with the contemplated transaction had itself created substantial additional hedging risk; and
- as a result, certain positive statements concerning UWM’s business, operations, financial condition, and prospects were materially misleading or lacked a reasonable basis.
In May 2026, Ishbia described UWM’s first quarter as an “exceptional quarter” and told investors that UWM was “built to perform through all cycles.”
WHAT HAPPENED?
On August 5, 2026, after the market closed, UWM reported its second-quarter 2026 financial results. UWM disclosed a $603.2 million loss on interest-rate derivatives, which contributed to a $451.9 million quarterly net loss. The complaint also alleges that UWM’s total equity had fallen 43.6% from the prior-year period.
The following day, during UWM’s earnings conference call, Ishbia explained the circumstances surrounding the derivatives loss and acknowledged “We were over-hedged, if you think of it that way, protecting against the Two Harbors transaction.”
On that news, UWM shares declined $0.64 per share, or approximately 34.8%, to close at $1.20 per share on August 6, 2026.
The lawsuit alleges that investors purchased UWM securities at artificially inflated prices because they were not informed of the extent of the Company’s Two Harbors-related hedging position and the risk that the hedge itself posed to UWM’s financial condition.
WHAT CAN UWMC INVESTORS DO?
If you purchased or otherwise acquired UWM common stock between March 9, 2026 and August 5, 2026 and suffered a loss, you may contact Adam Savett at (212) 451-9655, or asavett@wolfpopper.com to discuss your legal rights.
Investors wishing to seek appointment as lead plaintiff must file a motion with the Court no later than October 13, 2026. You do not need to serve as lead plaintiff to participate in any potential recovery.
Contact Instructions