UWM Holdings Corp., the parent of United Wholesale Mortgage, earned $212.6 million in the third quarter, a sharp reversal from its $451.9 million loss in the second quarter. Loan volume fell to $33.4 billion as higher mortgage rates cut into refinancing. The Pontiac, Mich., lender reported the results on Nov. 4 in a release filed with the Securities and Exchange Commission.
The final figure falls within the range UWM gave in an Oct. 23 preliminary release, which estimated net income of $205 million to $220 million and revenue of $800 million to $825 million. Total revenue came in at $811.1 million, down from $888 million in the second quarter and $843.3 million a year earlier. Earnings were $0.09 per diluted share, or $0.10 on an adjusted basis.
Refinancing drives the volume decline
Most of the drop in originations came from refinancing. Refinance volume fell to $10.6 billion from $15.9 billion in the second quarter and $16.5 billion a year earlier. Purchase loans, which make up most of UWM’s business, slipped less, to $22.8 billion from $23.8 billion in the second quarter and $25.2 billion in the third quarter of 2025.
Margins also narrowed. UWM’s total gain margin, the revenue it earns on each loan as a share of loan amount, was 124 basis points, down from 133 in the second quarter and 130 a year earlier. Adjusted EBITDA, a non-GAAP measure that excludes valuation changes in servicing rights and hedge results, fell to $178.3 million from $185.9 million in the second quarter and $211.1 million a year earlier.
Servicing valuations explain the swing
The large change from quarter to quarter shows up in two income statement lines. The fair value of UWM’s mortgage servicing rights rose by $470.3 million in the third quarter, after falling $122.7 million in the second. Losses on other interest rate derivatives were $481.5 million, compared with $603.2 million in the second quarter. By our arithmetic, those two lines together reduced results by about $11 million in the third quarter, compared with about $726 million in the second.
On our reading, that is why net income can rise while volume, margins and adjusted EBITDA all decline. The release excludes valuation-driven changes in servicing rights and derivative results from adjusted EBITDA. It does not otherwise discuss what caused the quarter’s valuation moves.
The servicing book continued to grow. UWM serviced loans with unpaid principal of $269.8 billion at a weighted average coupon of 5.97% as of Sept. 30, up from $247.6 billion at the end of June and $216 billion a year earlier. Loan servicing income was $246.6 million for the quarter. UWM has said it plans to sell $70 billion to $80 billion of servicing rights to pay down debt.
A stronger balance sheet after the capital deal
Total equity rose to $1.32 billion at Sept. 30 from $985.3 million at June 30. The balance sheet also shows $1.5 billion of redeemable preferred stock, in two series, and the income statement deducts $26.1 million of preferred dividends for the quarter. The release shows no preferred dividends in the second quarter or a year earlier. In August, UWM announced a $2.05 billion capital partnership with the Ishbia family and Oaktree after its second-quarter loss. The company reported available liquidity of about $1.35 billion, including $394.8 million of unrestricted cash.
“Our third quarter results show the strength of UWM and our ability to perform in any market,” Chairman and CEO Mat Ishbia said in the release. “Even with rates staying higher, our origination engine, operational execution and service levels continue to set us apart.” He added that the company’s spending on artificial intelligence and technology is making the business more efficient.
AI tools for brokers
The release describes what UWM called “the most significant evolution of ChatUWM since its launch in 2024,” the company’s AI assistant for mortgage brokers. UWM also launched a ChatUWM mobile app and a Mortgage Matchup plugin for ChatGPT aimed at consumers, with affordability and mortgage calculators.
The release also covers credit scoring. UWM says it was the first mortgage lender to offer VantageScore 4.0, and that about 25% of borrowers have received a more favorable credit result from it. That follows the company’s decision to pull both FICO and VantageScore on every loan and use the better score.
UWM, which describes itself as the largest wholesale mortgage lender for 11 consecutive years, scheduled a conference call for 11 a.m. ET on Nov. 4. The release contained no financial guidance. More lender coverage is in our mortgage section.
