world-economy

UWM Holdings Crashes 40% as Mortgage Giant Suspends Dividend, Seeks Capital Infusion

UWM Holdings, parent of the nation's largest mortgage lender, plunged 40% Thursday after the company suspended its quarterly dividend and raised $1.05 billion in fresh equity capital from Oaktree Capital Management and SFS Group Capital LLC. The Pontiac, Michigan-based lender's total equity fell to roughly $1 billion as of June 30 from $1.6 billion three months earlier. Available liquidity stands at approximately $1.3 billion, including $498 million in cash and borrowing capacity. CEO Mat Ishbia's family, the majority owner, also controls the NBA's Phoenix Suns. "We're taking decisive action to make UWM stronger, more liquid and better positioned to win for years to come," Ishbia said. UWM shares have collapsed about 85% from their 52-week high. Mortgage lenders face headwinds as elevated interest rates tied to Treasury yields push homebuyers from the market and curtail refinancing activity.