UWM Holding Company, the parent company to UWM Wholesale Mortgage, reported disappointing first-quarter earnings that included a net loss of $247 million and a steep decline in the loan origination volume for the three months ending March 31.
The mortgage lender’s origination volume was $32.4 billion, down 16% from the previous quarter’s volume of $38.7 billion, but up 17% from the first quarter of 2024. The company’s loss of $247 million, or $.12 per share, missed the analysts’ consensus estimate that UWM would earn a profit of $0.05 per share. On the positive side, revenue reached about $613.4 million, beating expectations of $545.77 million, and rising 4.8% from the first quarter of 2024.
However, lower rates caused a decline in the fair value of mortgage servicing rights of $388.6 million during the quarter. Total refinancing also took a hit due to the fluctuating rates, falling to $10.6 billion, after reaching $16.8 billion in the previous quarter. But the first quarter’s refinancing totals were still nearly double those from the first quarter of 2024.
“When rates briefly dipped, we swiftly capitalized on the refinance opportunity, all the while maintaining our best-in-class performance in the purchase market,” Mat Ishbia, company chairman, CEO and president said in a press release.
