United Wholesale Mortgage reported a first-quarter net loss of $247 million on total revenue of $613.5 million, down from a profit of $180.5 million during the same period last year. A $388 million reduction in the fair value of its mortgage servicing rights portfolio impacted the results, the Pontiac, Michigan-based lender said Tuesday.

The lender's loss in the first quarter follows a profitable fourth quarter, when it posted net income of $40.6 million.

Production was higher in the first quarter, with UWM closing $32.4 billion in loans, up 17.1% from the same period a year ago, due to an increase in refinance activity. Refinance volume reached $10.6 billion for the quarter, a 92.5% year-over-year increase. Purchase volume exceeded $20 billion for the eighth consecutive quarter.

"During our past few earning calls, we discuss how UWM is uniquely prepared to win in any type of market and with a significant volatility the past couple months, we showcase that preparation several times," CEO Mat Ishbia said during an earnings call Tuesday. "When there were brief periods of low rates, our refi and operational excellence enables us to double our daily production levels without sacrificing speed, quality or service. And when the rates were higher, we demonstrate our continued dominance on the purchase market."

Despite the quarterly loss, Ishbia pointed out the company’s operational strengths and growth in market share. He also hinted at some enhancements in technology on the way this year and in 2026.

The earnings call came a week after Intercontinental Exchange Inc. announced that UWM had signed a long-term agreement to license its ICE Mortgage Technology MSP® loan servicing system to bring its servicing operations in-house.

Ishbia said UWM plans to bring mortgage servicing in-house starting in early 2026, with the goal of fully managing the process by the end of that year.

"This is something we've been contemplating for many years," he said. "However, we believe now is the time to make this investment. By leveraging the latest technology and AI, our plan is to be the most efficient servicer in America. We are excited to control this part of the process and look forward to the cost savings that we will achieve, which some people can estimate between $40 million and $100 million a year."

Ishbia said that in response to shareholder feedback, he’s taking steps to increase the amount of UWM stock available for public trading, known as float.

“As you guys know, I own about 87% of the shares,” he said. “Back in March, I put out a 10b5 program that you'll see in the 10-Q that will go into effect June 17 to basically get more float and make it a consistent process, rather than some of the one-off things we've done to try to increase float.”

He said the goal is to eliminate uncertainty around how additional shares enter the market.

“There will be no more uncertainty and no more creative ways to get float out there,” he said. “We're going to be consistent with the 10b5."

Ishbia said he believes UWM stock is undervalued and that he's confident that selling a portion of his shares will provide long-term value for investors. UWM stock opened at $4.45 a share Tuesday morning.

“Even when I did the documents back in March, it’s undervalued,” he said. “But I believe that if I sell enough float to get out there and get more float in the market, that the other 80%, 81%, 82% of shares I own still after this next year or two that we do this will be worth much, much more.”

As of April, UWM's broker channel market share has increased to 27.8%, up from 19.7% in 2022. That’s the highest level since 2009, according to recent data from Inside Mortgage Finance.

"We're really happy with the quarter to be honest with you, and I'm actually even more excited about the second quarter," Ishbia said. "So we feel like we're in a great, great position as a company. I like to say, never been stronger because I know what we're about to roll out and how we're going to do different things over the next three to 12 months."

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