United Wholesale Mortgage surprised the market Tuesday afternoon with its second quarter earnings featuring a hedge-related net loss and a major investment. That will be used, among other corporate purposes, to pay down existing debt and repay mortgage servicing rights financing facilities, UWM said. UWM Chairman, President, and CEO Mat Ishbia said the deal would have doubled UWM's servicing book and it created more risk, so the company set up a hedge as protection. Ishbia also lauded the Oaktree partnership, and the firm's knowledge of mortgage servicing rights and the industry at-large. Originations declineFor the second quarter, UWM reported $39.7 billion in loan origination volume, composed of $23.8 billion in purchase loans and $15.9 billion in refinance volume.