On the same day that United Wholesale Mortgage Holdings Corp. (UWMC) sued Two Harbors Investment Corp. (TWO), alleging willful breach of contract and fraud resulting in their failed merger, the wholesale lending giant found itself facing scrutiny from its own shareholders.
Shareholders of UWMC, parent of United Wholesale Mortgage (UWM), announced Monday they had enlisted the help of securities litigation attorneys to investigate the company for possible violations of federal securities law, citing a roughly $603 million derivatives loss reported in second-quarter financials released last week.
Mat Ishbia, CEO and chairman of UWMC, explained the loss during an earnings call as the consequence of an “overhedged” position that became costly af...