None
EN
Comment on Derivative Losses Squish Already Crushed UWM, the Largest Mortgage Lender in the US: SPACs just Keep on Giving by dang
[]
Comments for Wolf Street
The already shredded stock of UWM Holdings, the parent company of United Wholesale Mortgage, the largest home-mortgage lender in the US with $40 billion in mortgage originations in Q2, plunged another 35% today, into penny-stock territory of $1.20 a share.
It was the largest SPAC deal at the time and made CEO and founder Mat Ishbia a multi-billionaire.
A loss of $123 million due to the decline of the fair value of mortgage servicing rights.
At the nonbank mortgage lenders overall, employment has plunged by 39% since 2021.
So the SPAC merger of UWM in January 2021, at the very peak of this mortgage bubble, at a $16 billion valuation, was a nice job on investors.