Uwm Delivers $41.7b In Q3 Volume Amid ‘rate Rally’

United Wholesale Mortgage (UWM) capitalized on the year’s lowest mortgage rates in the third quarter, closing $41.7 billion in loan origination volume, its best quarter performance since 2021. 

“We’ve been prepared for a rate rally for years, and the third quarter of this year is a little bit of a glimpse of what it would look like,” Mat Ishbia, UWM chairman, CEO and president, told analysts in an earnings call on Thursday morning. “To give you a more tangible example showcasing our capabilities, one day in September, we had an all-time record lock day; we locked $4.8 billion.” 

Purchase loans remained the bulk of UWM’s production, despite a decline: $25.2 billion in Q3 compared to $29.7 billion in Q2. Refinances, however, saw the biggest jump, rising to $16.5 billion from $12.4 billion in the prior quarter. 

On the technology front, UWM’s proprietary loan assistant MIA made 400,000 outbound calls on behalf of brokers during the quarter, resulting in more than 14,000 closed loans, most of them refinances. 

Ishbia said that MIA addresses a key challenge: while 97% of borrowers report loving their broker experience, only 10% remember who their broker was. “What’s interesting is we forecasted a 10% to 15% answer rate, and we’ve actually seen over 40%,” he added. 

Financial performance 

UWM’s gain-on-sale margin rose to 130 basis points, up from 113 bps in Q2 2025 and 118 bps a year earlier.

Overall, the lender reported net income of $12 million for the quarter, down from $314 million in Q2 and $31 million in Q3 2024.

Documents filed with the Securities and Exchange Commission (SEC) show a non-GAAP net profit of $9 million for the quarter. A $158.8 million fair value decline in its servicing portfolio offset gains — a common occurrence when rates drop.

Analysts at Keefe, Bruyette & Woods said that earnings came in-line with expectations. “Total volumes and higher margins were a beat but were offset by higher expenses.” They added the quarter combined with the guidance are “modestly positive.”  

Servicing overhaul ahead

UWM’s mortgage servicing rights (MSRs) totaled $216 billion in unpaid principal balance (UPB) as of Sept. 30, up from $211 billion at the end of June.

UWM remains on track to bring servicing in-house by 2026, with all new loans closed that year to be serviced internally. Loans currently subserviced by Cenlar will transition by the end of 2026, except those UWM elects not to retain.

Ishbia acknowledged that the servicing book transition has increased short-term costs since UWM is both paying subservicers and developing internal capacity. However, he said it will reduce expenses and generate leads in the long run. 

The executive, who called servicing “a joke in our industry” during the call, closed a strategic collaboration with Bilt to offer a rewards program on mortgage payments.  

Liquidity conditions 

UWM ended the quarter with $3 billion in available liquidity, including $870 million in cash and borrowing capacity. 

Chief financial officer Rami Hasani said the company completed an offering of $1 billion in unsecured notes. “We plan to pay off $800 million unsecured notes maturing in mid-November, and will utilize the remainder to support our growth.” 

Looking ahead, the lender expects to originate between $43 billion and $50 billion in the fourth quarter, with a gain-on-sale margin projected between 105 and 130 bps. 

Ishbia said that, when the 10-year Treasury declines to 3.7%, “we are going to double our business” to a volume of $60 billion to $80 billion a quarter with margin expansion. Ishbia mentioned that UWM could double the business with the current fixed structure. 

UWM shares traded at  $5.22 as of Thursday about 11:00 AM E.T., down 7.8% from the previous day’s close.