UWM faces securities class action over MSR hedging, Two Harbors deal

  • UWM faces a securities class action alleging misleading disclosures about MSR hedging and the Two Harbors transaction.
  • The complaint cites a nearly $603.2 million derivatives loss, a $451.9 million second-quarter net loss and a nearly 35% share-price decline.
  • The proposed class covers securities acquired from March 9 through August 5, 2026, with lead-plaintiff applications due October 13.

UWM Holdings Corporation faces a proposed securities class action in the U.S. District Court for the Eastern District of Michigan on behalf of investors who purchased or otherwise acquired its securities from March 9 through August 5, 2026. Complaints in Bond v. UWM Holdings Corporation, No. 26-cv-12862, allege that UWM and certain senior executives violated the Securities Exchange Act of 1934 by abandoning the company’s traditional practice of not hedging mortgage servicing rights, taking a major hedge position, over-hedging ahead of a planned Two Harbors Investment Corp. transaction, and creating excess hedging risk while attempting to balance exposure. After UWM reported a nearly $603.2 million interest-rate derivatives loss and a $451.9 million second-quarter net loss, its shares fell nearly 35%, according to the complaint. Investors must apply for lead-plaintiff appointment by October 13, 2026; participation in any potential recovery does not require serving in that role.

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