UWM Holdings Corporation reported a significant decline in financial performance for the first quarter of 2025, with a net loss of $247.0 million compared to a net income of $180.5 million in the same period of 2024. The company's total revenue increased to $613.4 million, up from $585.5 million year-over-year, driven by higher loan production income and servicing income. Loan production income rose to $304.8 million, while loan servicing income increased to $190.5 million. However, the company faced substantial losses from mortgage servicing rights (MSRs), with a valuation adjustment of $(388.6 million) compared to $(15.6 million) in the prior year, contributing to the overall net loss.
In terms of operational metrics, UWM originated $32.4 billion in loans during the first quarter, marking a 17.1% increase from $27.6 billion in the same quarter of 2024. The company’s average loan amount and weighted average credit score remained stable, indicating a consistent underwriting quality. However, the average unpaid principal balance of loans serviced decreased to $214.6 billion from $242.4 billion, reflecting a reduction in the servicing portfolio. The company also reported a decrease in the number of loans serviced, which fell to 589,259 from 729,781 year-over-year.
UWM's financial position showed a decrease in total assets, which fell to $14.0 billion from $15.7 billion at the end of 2024. The company's liabilities also decreased, primarily due to a reduction in warehouse lines of credit, which dropped to $7.6 billion from $8.7 billion. The company maintained compliance with all financial covenants associated with its borrowing facilities, indicating a stable liquidity position despite the operational challenges faced in the quarter.
Strategically, UWM is transitioning to develop its internal servicing capabilities, moving away from reliance on third-party sub-servicers. This shift is expected to incur expenses and capital costs but aims to enhance control over servicing operations. The company also continues to explore opportunities in the secondary market for selling loans and MSRs, which are critical for funding operations. Looking ahead, UWM anticipates that its cash on hand and liquidity sources will be sufficient to support operations and loan originations over the next twelve months, despite the challenges posed by market conditions and operational adjustments.
About UWM Holdings Corp
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