UWM Holdings Corporation reported more than $180 million in adjusted EBITDA and approximately $40 billion in second-quarter business volume, while outlining a proposed capital partnership with Oaktree and plans to suspend its regular dividend. The Oaktree transaction involves a $1.5 billion investment, plus up to $550 million from UWM's largest shareholder, raising total equity to roughly $3 billion and reducing its non-funding debt-to-equity ratio from about 5.6 times to approximately 1.2 times. UWM is suspending its dividend to retain capital and strengthen liquidity, and will continue to assess dividends with its board each quarter. A failed Two Harbors transaction and related hedging losses weighed on second-quarter results, but management characterized the setback as transaction-specific. The company remains focused on mortgage origination, while expanding in-house servicing and positioning for stronger housing and refinancing conditions.
UWM Holdings CorpUWM announced a $1.5 billion investment from Oaktree and dividend suspension to strengthen liquidity, reducing debt-to-equity ratio significantly.
Two Harbors Investments CorpThe failed Two Harbors transaction negatively affected UWM's results, but the impact on Two Harbors itself is not detailed.
Oaktree Specialty Lending Corp