A class action has been filed against UWM Holdings Corporation and its chief executive officer and chief financial officer, alleging securities fraud over an undisclosed shift in mortgage servicing rights hedging tied to the proposed Two Harbors transaction. Bleichmar Fonti & Auld LLP announced the lawsuit, SueWallSt, powered by Levi & Korsinsky LLP, is notifying investors of their rights, and The Portnoy Law Firm is also advising UWM investors of the action. UWM shares fell $0.64, or 34.78%, to close at $1.20 on Aug. 6, 2026, after the company reported a $603.2 million interest rate derivatives loss, a $451.9 million quarterly net loss, and a 43.6% year-over-year drop in total equity. On an Aug. 6, 2026 earnings call, Chief Executive Officer Mathew Ishbia said the firm had been over-hedged protecting against the Two Harbors transaction and does not traditionally hedge its mortgage servicing rights. Shares had reached a class-period high of $4.04 on March 10, 2026. UWM originates, sells and services residential mortgage loans in the United States. In December 2025 it signed a $1.3 billion all-stock merger agreement with Two Harbors Investment Corp., which Two Harbors terminated in March 2026 after accepting a competing cash offer from CrossCountry Mortgage and paying UWM's termination fee. Plaintiffs allege UWM departed from its longstanding practice of not hedging mortgage servicing rights by taking a large derivative position without disclosure, over-hedged ahead of the deal, and that fiscal 2026 revenue guidance of $3.5 billion to $4.5 billion lacked a reasonable basis while that exposure went undisclosed. The case, Bond v. UWM Holdings Corporation et al., No. 26-cv-12862, is pending in the U.S. District Court for the Eastern District of Michigan and asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Investors who purchased UWM securities from March 9 through Aug. 5, 2026, have until Oct. 13, 2026, to seek appointment as lead plaintiff.