UWM Holdings Corporation faces a proposed securities class action and an investigation by Hagens Berman after its shares fell 34.78% to $1.20 on August 6, 2026. The actions concern allegations that UWM over-hedged mortgage servicing rights while pursuing a planned $1.3 billion, all-stock acquisition of Two Harbors Investment Corp. and failed to fully disclose the resulting exposure. Two Harbors terminated that agreement on March 27 after agreeing to be acquired by CrossCountry Mortgage in a cash transaction, leaving UWM with the hedges. UWM subsequently reported a $603.2 million interest-rate derivatives loss, a $451.9 million second-quarter net loss and a roughly $615 million sequential decline in equity, while agreeing to a massively dilutive recapitalization plan. The proposed class covers investors who acquired UWM securities from March 9 through August 5, 2026, and the lead-plaintiff deadline is October 13. The lawsuit has been filed, but no class has been certified.