Robbins Geller sets Oct. 13 deadline in UWM investor suit over hedging losses
Robbins Geller Rudman & Dowd LLP issued an investor alert on a UWM Holdings securities class action that alleges misleading statements about mortgage servicing rights hedging and related losses.
Robbins Geller Rudman & Dowd LLP says investors who bought UWM Holdings securities during a March-to-August 2026 class period may seek lead plaintiff status by Oct. 13 in a securities case tied to mortgage servicing rights hedging losses.
Robbins Geller Rudman & Dowd LLP issued an investor alert on Sept. 4 about a UWM Holdings Corp. securities class action filed in the U.S. District Court for the Eastern District of Michigan. The complaint is captioned Bond v. UWM Holdings Corporation, No. 26-cv-12862, and the notice says investors who bought or acquired UWM securities between March 9, 2026, and Aug. 5, 2026, may seek appointment as lead plaintiff by Oct. 13, 2026.
The notice says the lawsuit alleges UWM and certain top executive officers violated the Securities Exchange Act of 1934. It centers on claims that the company misled investors about its mortgage servicing rights hedging and the losses that followed.
The allegations focus on how UWM managed mortgage servicing rights, or MSRs, which are the rights to collect payments and service mortgage loans after origination.
According to the notice, UWM and Two Harbors Investment Corp. signed an all-stock merger agreement in December 2025 valued at $1.3 billion to expand UWM's mortgage servicing rights. The notice says Two Harbors terminated that agreement in March 2026 because of a competing offer and agreed to pay UWM's termination fee.
The investor alert says UWM departed from its traditional practice of not hedging MSRs and instead took a major hedge position in anticipation of the transaction. It alleges the company over-hedged and created excess hedging risk when the deal later fell through.
Robbins Geller says UWM reported second-quarter fiscal 2026 results after the market closed on Aug. 5, 2026, including a nearly $603.2 million interest rate derivatives loss, a $451.9 million quarterly net loss and a 43.6% year-over-year decline in total equity. The notice says those results were followed by a nearly 35% drop in UWM's stock price, according to the complaint.
On Aug. 6, 2026, CEO Mathew Ishbia said on an earnings call that UWM was "over-hedged" and did not traditionally hedge its MSRs, but had done so to protect against the Two Harbors transaction, which then went away, the notice says.
The notice also includes investor contact information for Robbins Geller attorneys Ken Dolitsky and Michael Albert. It describes the firm as a securities litigation practice and says it ranked No. 1 on the most recent ISS Securities Class Action Services Top 50 Report and recovered more than $916 million for investors in 2025, though those statements are promotional and not part of the case allegations.
The lead-plaintiff deadline is Oct. 13, 2026, for investors in the class period.
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Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.
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