Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission file number 001-39189 UWM HOLDINGS CORPORATION (Exact name of registrant as specified in its charte ...

Theerayut Kaenthao In 2023, UWM Holdings Corporation (NYSE:UWMC) showcased remarkable resilience, more than doubling its share price despite facing challenges from Federal Reserve rate hikes. The company's strategic offensive stance, evident in substantial loan volumes, new services, and operational efficiency gains, fueled its performance. However, new challenges arise in 2024, including anticipated rate cuts and a dividend to maintain. I believe UWM's financial strength, operational excellence, and ca ...

UWM Holdings Corporation (NYSE:UWMC) Q3 2023 Results Conference Call November 8, 2023 10:30 AM ET Company Participants Blake Kolo - Chief Business Officer & Head of Investor Relations Mathew Ishbia - Chairman, President & CEO Andrew Hubacker - Executive VP, Chief Accounting Officer & CFO Conference Call Participants Kyle Joseph - Jefferies Bose George - KBW Eric Hagen - BTIG Jeffrey Adelson - Morgan Stanley Kevin Barker - Piper Sandler Mikhail Goberman - JMP Securities Operator Good morning. My name is Rob, ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission file number 001-39189 UWM HOLDINGS CORPORATION (Exact name of registrant as specified in i ...

Financial Data and Key Metrics Changes - In Q2 2023, the company achieved a production volume of $31.8 billion, marking a 43% increase compared to Q1 2023 and setting a new all-time quarterly record for purchase volume at $28 billion [7][2] - Year-to-date net income reached $90.2 million, with Q2 net income reported at $228.8 million, surpassing the previous year's performance despite a more challenging market environment [2][7] - The gain margin for Q2 was 88 basis points, consistent with guidance, and year-to-date gain margin stood at 90 basis points, reflecting a significant increase from the latter half of 2022 [7][16] Business Line Data and Key Metrics Changes - The company rolled out new products, including a 1% down program aimed at assisting lower-income borrowers, and enhanced its jumbo product offerings to drive more volume [14][12] - The government loan segment saw a 60% quarter-over-quarter growth, primarily driven by increased FHA loan activity as conventional options became less accessible [63][67] Market Data and Key Metrics Changes - The broker channel continues to gain momentum, with a significant number of loan officers transitioning from retail to wholesale, contributing to the company's growth [26][12] - The company maintained a strong balance sheet with total equity of approximately $2.9 billion and total accessible liquidity of approximately $2.8 billion as of the end of the quarter [30][29] Company Strategy and Development Direction - The company remains committed to investing in technology and team members to enhance service to brokers, with a focus on preparing for future market opportunities [19][12] - The strategy includes opportunistically selling MSRs to support operational liquidity while maintaining a high-quality servicing portfolio [17][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to succeed in various market conditions, highlighting that while competitors are downsizing, the company is hiring and investing [12][25] - The management anticipates a potential refi boom and is prepared to capitalize on it, emphasizing the importance of scale and operational readiness [25][84] Other Important Information - The company announced a consistent quarterly dividend of $0.10 for the 11th consecutive quarter, reflecting its financial stability despite industry challenges [32][29] - The company completed sales of MSRs totaling nearly $1.4 billion year-to-date, with a total servicing portfolio of approximately $295 billion at the end of the quarter [17][30] Q&A Session Summary Question: What is the origination capacity and how did the company achieve a 40% quarter-on-quarter volume increase? - The company attributed the volume increase to technology investments that allow for handling higher volumes without the need for layoffs [35] Question: What is the strategy regarding jumbo loans and how significant is this opportunity? - Management noted that the current banking environment presents opportunities in the jumbo loan market, which the company is well-positioned to capture [36] Question: How is the company managing interest costs in the elevated rate environment? - The company continues to utilize excess cash to self-warehouse production, which helps manage interest expenses [40] Question: Can you elaborate on the growth in government origination volume? - The growth in government loans, particularly FHA, is attributed to competitive dynamics and the need for affordable options as conventional loans become less accessible [63][67] Question: How does the company view the future of the broker channel? - Management expressed optimism about the broker channel's growth potential, emphasizing that brokers are increasingly loyal and successful with UWM [76][79]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission file number 001-39189 UWM HOLDINGS CORPORATION (Exact name of registrant as specified in its ch ...

Financial Data and Key Metrics Changes - The company reported a total production of $22.3 billion, which is at the high end of guidance, with $19.2 billion coming from purchase volume, marking a record for first-quarter production [8][12] - Gain margin improved to 92 basis points, up from 51 basis points in the previous quarter, indicating strong control over business operations [9][12] - A net loss of $139 million was reported, primarily due to a fair value markdown of over $337 million related to the MSR portfolio, but operationally, the company made money [14][16] Business Line Data and Key Metrics Changes - The company achieved a significant increase in purchase volume, which is a key focus area, reflecting the strength of its business model in a challenging market [8][12] - The operational performance was strong, with total expenses declining nearly $50 million, or 19%, compared to the first quarter of 2022, contributing to improved core operational performance [16][18] Market Data and Key Metrics Changes - The company maintained a dominant market share, reportedly growing from 32% to 55% in the wholesale channel, indicating strong competitive positioning [42][44] - The overall mortgage market is smaller than in previous years, but the company is well-prepared for future growth, expecting to double its business volume over the next couple of years [51][52] Company Strategy and Development Direction - The company is focused on innovation and growth, emphasizing the importance of the broker community and the launch of new products to support this channel [21][22] - The company plans to continue investing in technology and client relations to enhance its market share and operational efficiency [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current challenging mortgage market, highlighting the importance of scale efficiencies and technology investments [7][21] - The outlook for the second quarter is optimistic, with expected production between $23 billion and $30 billion and margins in the range of 75 to 100 basis points [24][36] Other Important Information - The company announced a quarterly dividend of $0.10 for the 10th consecutive quarter, reflecting its commitment to rewarding shareholders [23] - The company has enhanced its liquidity, with total liquidity increasing to approximately $2.9 billion as of March 31, 2023, an increase of about $800 million from the end of the previous year [19][20] Q&A Session Summary Question: What is the outlook for margins in the current environment? - Management indicated that margins are expected to remain in the range of 75 to 100 basis points, reflecting control over pricing and market conditions [27][31] Question: How impactful would a drop in mortgage rates be on business volumes? - A drop of 100 basis points could potentially double business volumes and increase margins, leading to significant profitability [35][36] Question: What is the outlook for market share as the company moves away from programs like Game On? - Management believes that even without Game On, market share will remain strong, with expectations of maintaining a 40%-45% range in the wholesale channel [42][44] Question: How does the company view its MSR portfolio and potential sales? - The company is opportunistic regarding MSR sales, with a current portfolio estimated around $300 billion, and does not foresee a need to sell unless favorable conditions arise [61][62] Question: What strategies are in place to manage interest rate risk? - The company employs a risk-free approach to managing its pipeline and utilizes self-warehousing to mitigate interest expenses [65][68] Question: What drove the decrease in G&A expenses this quarter? - Management highlighted effective cost management strategies, including vendor negotiations, rather than layoffs, contributing to the decrease in G&A expenses [71][73]

Financial Performance - For Q1 2023, the company originated $22.3 billion in residential mortgage loans, a decrease of $16.5 billion, or 42%, from $38.8 billion in Q1 2022[126] - The company reported a net loss of $138.6 million in Q1 2023, a decrease of $591.9 million, or 130.6%, compared to a net income of $453.3 million in Q1 2022[126] - Adjusted EBITDA for Q1 2023 was $141.0 million, compared to $128.4 million in Q1 2022, reflecting an increase of 9.9%[126] - Total revenue for Q1 2023 was $161.3 million, a significant decline from $821.8 million in Q1 2022[133] - Loan production income decreased to $205.4 million in Q1 2023 from $383.9 million in Q1 2022, representing a decline of 46.5%[133] - Loan servicing income increased to $218.6 million in Q1 2023 from $198.6 million in Q1 2022, an increase of 10.1%[133] - The change in fair value of mortgage servicing rights for Q1 2023 was a loss of $337.3 million, compared to a gain of $172.0 million in Q1 2022[133] - Total expenses for Q1 2023 were $300.9 million, down from $364.5 million in Q1 2022, a decrease of 17.5%[133] - Salaries, commissions, and benefits decreased to $121.0 million in Q1 2023 from $160.6 million in Q1 2022, a reduction of 24.6%[133] - Interest income for Q1 2023 was $74.6 million, compared to $67.4 million in Q1 2022, an increase of 10.7%[133] Loan Origination and Servicing - Total loan origination volume declined by $16.5 billion, or 42%, from $38.8 billion in Q1 2022 to $22.3 billion in Q1 2023, primarily due to lower refinance volume[135] - Loan servicing income increased to $218.6 million in Q1 2023, up $20.0 million, or 10.1%, from $198.6 million in Q1 2022, driven by higher average servicing fees[136] - Servicing costs decreased by $10.3 million, or 21.9%, from $47.2 million in Q1 2022 to $36.9 million in Q1 2023, due to lower loss mitigation expenses[137] - The weighted average servicing fee as of period end increased to 0.2785% in Q1 2023 from 0.2587% in Q1 2022[136] - The average loan amount remained stable at $362 in Q1 2023, compared to $363 in Q1 2022, while the weighted average loan-to-value ratio increased to 83.51% from 75.07%[134] Cash Flow and Financing Activities - Net cash provided by operating activities was $1.99 billion for Q1 2023, a decrease from $11.75 billion in Q1 2022[183] - Net cash provided by investing activities increased to $644.4 million in Q1 2023 from $610.5 million in Q1 2022, driven by higher proceeds from sales of MSRs and excess servicing cash flows[184] - Net cash used in financing activities was $2.60 billion in Q1 2023, down from $12.19 billion in Q1 2022, primarily due to decreased net repayments under warehouse lines of credit[185] - The company declared a dividend of $0.10 per share of Class A Common Stock, totaling $9.3 million, and a distribution of $150.2 million from Holdings LLC to SFS Corp.[187] Debt and Borrowing - As of March 31, 2023, the total advanced against the company's warehouse facilities was $4,259.8 million, with $400 million committed[160] - The company had $250 million outstanding under the MSR Facility as of March 31, 2023, which provides up to $1.5 billion of uncommitted borrowing capacity[171] - The company also had $250 million outstanding under the GNMA MSR facility, which offers up to $500 million of uncommitted borrowing capacity as of March 31, 2023[174] - The 2025 Senior Notes issued by the company amount to $800 million with a 5.500% interest rate, due November 15, 2025[163] - The 2029 Senior Notes issued by the company total $700 million with a 5.500% interest rate, due April 15, 2029[166] - The 2027 Senior Notes issued by the company are $500 million with a 5.750% interest rate, due June 15, 2027[168] - The company was in compliance with all financial covenants under its warehouse facilities as of March 31, 2023[162] Risk Management - The company utilizes forward agency or Ginnie Mae To Be Announced (TBA) securities as its primary hedge instrument to manage interest rate risk[201] - The company assesses market risk using a sensitivity analysis based on hypothetical changes in interest rates, with limitations in extrapolating results to actual performance[202] - The company is subject to credit risk from borrowers' defaults, which is mitigated through stringent underwriting standards and strong fraud detection tools[204] - The company manages counterparty risk by selecting financially strong counterparties and spreading risk among multiple entities[205] - The company incurred no losses due to nonperformance by any of its counterparties during the three months ended March 31, 2023, or March 31, 2022[206] Market Conditions - The fair value of mortgage servicing rights (MSRs) generally increases in rising interest rate environments, while it decreases in declining interest rate environments, impacting expected cash flows[200] - As of March 31, 2023, a 25 basis point increase in interest rates would result in a total change in assets of $1,522 thousand, while a decrease would lead to a total change of $(17,578) thousand[203] - The weighted average FICO score for originated loans as of March 31, 2023, was 737, slightly down from 741 in the same period in 2022[204] - Interest rate lock commitments for fixed rates amounted to $9.26 billion as of March 31, 2023, compared to $5.35 billion at the end of 2022[191] - The blended average pullthrough rate was 75% as of March 31, 2023, down from 77% at the end of 2022[190] - In Q1 2023, the company sold excess servicing cash flows on certain agency loans for proceeds of approximately $305.5 million[176]

Financial Data and Key Metrics Changes - UWM Holdings Corporation reported a strong performance in 2022, achieving a total production volume of over $127 billion and nearly $1 billion in profit despite a challenging mortgage market [30][31] - The fourth quarter production volume was $25.1 billion, with $21.7 billion coming from purchase loans, marking a significant increase in market share to 54% in the broker channel, up from 41% in the previous quarter [31][32] - The company experienced a loss of $62.5 million in the fourth quarter, primarily due to a $151 million decrease in the fair value of mortgage servicing rights (MSRs), but operational profitability remained strong with a gain margin of 51 basis points [33][34] Business Line Data and Key Metrics Changes - The core purchase business showed a year-over-year increase in origination volume, indicating strong demand in the purchase market [36] - UWM's servicing portfolio remained robust, with a total unpaid principal balance (UPB) of approximately $312 billion at the end of 2022, maintaining high asset quality and low delinquencies [36][37] Market Data and Key Metrics Changes - The broker channel is projected to grow, with expectations that it could reach 30% to 33% of the overall market by 2025 or 2026, with UWM aiming for over 40% market share within that channel [22][43] - UWM's market share in the overall mortgage market is approximately 11% [11][22] Company Strategy and Development Direction - UWM is committed to investing in technology and supporting mortgage brokers, emphasizing the importance of the broker channel for consumer loans [9][10] - The company plans to continue its "Game On" strategy, which aims to enhance broker relationships and market presence, while maintaining competitive pricing [44][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in UWM's ability to thrive in a higher interest rate environment, stating that the best mortgage companies will continue to separate from the competition [3][9] - The company anticipates production in Q1 2023 to be between $16 billion and $23 billion, with margins expected to remain in the range of 75 to 100 basis points [19][34] Other Important Information - UWM has maintained a consistent dividend of $0.10 per share for nine consecutive quarters, reflecting strong financial health [30] - The company has never laid off a team member in its 37-year history, highlighting its commitment to employee retention [9] Q&A Session Summary Question: What are the limitations of offering interest rate buy-downs if rates continue to rise? - Management noted that buy-downs have been successful and will remain viable options for borrowers, helping to address affordability challenges [46] Question: How does UWM view its market share trends as it pulls back from the "Game On" initiative? - Management indicated that while they do not expect to maintain the current 54% market share indefinitely, they believe the broker channel will continue to grow and UWM will retain a significant share [68] Question: Are there any increases in delinquency or servicing costs due to rising rates? - Management reported no significant impact on delinquencies or servicing costs, maintaining a low delinquency rate and high credit quality [74] Question: What impact does acquiring an NBA franchise have on UWM's business? - Management stated that the acquisition of the Phoenix Suns and Mercury will have no negative impact on UWM and may even enhance its visibility and platform in the market [76][80]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission file number 001-39189 UWM HOLDINGS CORPORATION (Exact name of registrant as specified in its charter) Delaware 84-212 ...