The company achieved this as mortgage originations were up 18% and its gain-on-sale rose by just under 7% compared to the second quarter of 2024.

UWM's results for the second quarter

GAAP net income for the quarter was $314.5 million, compared with a first quarter net loss of $247 million and net income of $76.3 million for the same period in 2024.

In the current quarter, UWM took a $111.4 million MSR write-down. But UWM did do a derivatives trade to help manage some of that loss, Ishbia said, and reported a $208.9 million gain from the transaction.

The first quarter loss, it should be noted, was due to a $388.6 million write-down in the value of its mortgage servicing rights.

UWM's gain-on-sale of 113 basis points for the period was up from 94 basis points for the period ended March 31 and from 106 basis points in last year's second quarter.

Meanwhile, total volume grew to $39.7 billion, of which $27.3 billion was for purchase mortgages.

In the first quarter UWM did $32.4 billion, with purchase mortgages making up $27.1 billion. This was the third best quarter for purchase ever at UWM.

A year ago, it produced $33.6 billion, of which $21.2 billion was for purchase.

The higher volume and margins helped to increase UWM's 24% from the first quarter to $785.7 million.

UWM's results beat KBW's estimates

UWM beat Keefe, Bruyette & Woods' earnings per share estimates on both a GAAP and operating basis.

"The GAAP beat was driven by a large derivative gain," Bose George wrote in a flash note. "Expenses also came in below estimates (by 2 cents), largely driving the [operating] beat in the quarter."

UWM missed George's production estimate of $47.6 billion, while the 25% quarter-to-quarter increase was below his expected 35% gain.

How the project to bring servicing in-house is going

Ishbia gave an update on the effort to bring UWM's servicing function in house. This should be completed by the first quarter of 2026, with the positive impacts from the shift to be seen next year and beyond.

"We'll deliver the same world class service we're known for on the servicing side, which will drive increased loyalty to brokers in UWM," Ishbia said. "Right now in the market, it's not done that way on the servicing side," he added, taking the opportunity to speak about the company's new relationship with loyalty platform Bilt.

In the past, UWM was known to be a company that is willing to sell its MSRs if the price is right. As of June 30, it had a portfolio with an unpaid principal balance of $211.2 billion, down from $214.6 billion three months earlier, but up from $189.5 billion one year prior.

When asked about the MSR sales market, Ishbia said "the market's very robust. Honestly, we have new people coming in and aggressively trying to buy our servicing."

This being said, he also took the opportunity to comment on companies who purchase MSRs to drive refinance leads. "That's not how it really works anymore, but don't tell the servicing buyers."

UWM's outlook for the third quarter

For the first time in four years, UWM increased its gain-on-sale guidance by two levels, the company said. It is now looking for between 100 basis points and 125 basis points.

United Wholesale Mortgage's production in the current period should be between $33 billion and $40 billion, the internal guidance added.

But George is expecting third quarter volume from UWM of $48.6 billion; the Street estimate is $44.5 billion, the KBW report noted.