United Wholesale Mortgage (UWM), the largest originator in America, produced $32.4 billion in mortgages in the first quarter of 2025, capitalizing on a brief decline in interest rates that spurred a wave of refinance activity. This production volume represents a 17% increase compared to the same period last year, and UWM expects even stronger results in the current quarter. 

However, lower rates also led to a decline in the fair value of mortgage servicing rights (MSR), resulting in a paper loss that the company says it has no control over.

The company reported a net loss of $247 million for the quarter, compared to net income of $40.6 million in the previous quarter and $180.5 million in the same period last year. Documents filed with the Securities and Exchange Commission (SEC) show a non-GAAP net loss of $195.3 million during the first quarter of 2025. 

“When rates briefly dipped, we swiftly capitalized on the refinance opportunity—all while maintaining our best-in-class performance in the purchase market,” chairman and CEO Mat Ishbia said in prepared remarks. “Our focus remains on building long-term, sustainable value—not chasing short-term gains—and we’re confident in our ability to perform across all market conditions, even amid economic uncertainty and volatility.”

UWM generated $21.7 billion in purchase mortgages in Q1 2025, slightly down from $21.9 billion in the previous quarter and $22.1 billion in the same period last year. Meanwhile, refinance originations totaled $10.6 billion, down from $16.8 billion in Q4 2024 but nearly double the $5.5 billion recorded in Q1 2024.

In Wednesday’s earnings call with analysts, Ishbia said that “a large portion [of the refis] came in a small window between the end of February and beginning of March.” 

Overall, the wholesale lender’s gain-on-sale margin stood at 94 basis points from January to March, down from 105 bps in the previous quarter and 108 bps in Q1 2024. During the quarter, UWM extended its 60-bps incentive pricing on conventional and government loans for qualifying brokers through March 31 to help increase volume during the slower winter months.

Analysts at KBW noted, “The lower margin quarter-over-quarter was in line with what we have seen in the broker channel from other large broker originators in the first quarter.” According to them, operating earnings per share “missed us and consensus” because of “a lower gain-on-sale margin and higher opex.” 

Rami Hasani, UWM CFO since April, said that UWM continues to invest in growing their operations underwriting and technology teams to support increased production volume. However, he added that, “More specifically, we believe our business is currently in a position to handle twice our 2024 origination volume with minimal impact or fixed costs.” On the expense side, Ishbia said “fixed costs are kind of at a peak based on where we think of things.” 

For the second quarter, UWM expects to originate between $38 billion and $45 billion in mortgages, with a projected gain-on-sale margin ranging from 90 bps to 115 bps. 

In its servicing portfolio, which is undergoing adjustments following the Rocket–Mr. Cooper deal, the MSR unpaid principal balance reached $214.6 billion as of March 31, compared to $242.4 billion as of December 31. 

Ishbia said UWM had contemplated bringing its servicing portfolio in-house for years but believed it was time to make this investment, which can result in savings between $40 million and $100 million a year. UWM’s ambition is to be the “most efficient servicer in America,” Ishbia said. The expectation is to bring all loans in-house by the end of 2026. 

UWM, which has been an active seller of MSRs, will continue to move opportunistically, according to Ishbia.

“People want to offer me six and a half, seven, seven and a half multiples on MSRs; I have a lot of MSRs, right? And those opportunities are there,” Ishbia said. “Now, the fact that we can control the process, the experience even more, makes me lean a little more towards retaining more of it. But it all depends on the opportunities.” 

UWM ended the first quarter with $2.4 billion of available liquidity, including $485 million in cash and borrowing capacity.

Looking ahead, Ishbia said that, “while the macro environment may remain choppy, we will continue investing and winning.” Questioned about mergers and acquisitions, he said UWM is “a build-versus-buy type of company.” He also said releasing the government-sponsored enterprises from conservatorship is “way, way far in the future, if it even happens.” 

UWM shares were trading near $4.22 on Tuesday at 11 am ET, down 11.3% from the previous closing.

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