United Wholesale Mortgage produced nearly $50 billion in loans during the fourth quarter, as its parent company ended the period with substantially higher net income than the comparable quarters.

UWM Holdings reported fourth quarter GAAP net income of $164.4 million. This included a $28.8 million markdown on its mortgage servicing right portfolio. In the past Mat Ishbia, chairman, president and CEO, has said he does not manage the company to servicing valuations because these are out of his control.

Ishbia did not do a question and answer session during the call; the short-form nature of those doesn't do justice to explain the complexities of the company's business, he said.

During the prepared remarks, Ishbia said he was very optimistic on mortgage and housing, which now has "a big tailwind behind all of us.

"The administration, HUD, FHFA, Treasury, all these leaders in the country and in our industry, are trying to find a way to help affordability and lowering rates to help more consumers," he continued.

The earnings call was held the morning after Pres. Trump's State of the Union address, which touched on housing affordability, including restrictions on investor purchases of single-family homes.

What drove UWM's results

"The GAAP earnings were in line largely driven by revenues which were slightly lower, in turn driven by an increase in MSR realization of cash flows, although that was largely offset by higher production income and lower expenses," Bose George, an analyst at Keefe Bruyette & Woods said in a flash note prior to the earnings call.

In the third quarter, UWM earned $12.1 million, while in the fourth quarter of 2024, it posted profits of $40.6 million.

Full year GAAP net income was $244 million, down from $329.4 million in 2024.

But the low interest rate environment in the fourth quarter which caused the servicing valuation hit also led to production of $49.6 billion, with gain on sale margins of 122 basis points. About $30.7 billion of its volume was from refinancings, up from $16.5 billion in the third quarter.

The production volume was in line with, albeit slightly lower, than KBW's $50 billion expectations. But the gain margin beat the analyst's 115 basis point and the Street's 119 basis points predictions.

For the period ended Sept. 30, 2025, UWM originated $41.7 billion at a 130 basis point margin while for the fourth quarter in 2024, it did $38.7 billion with gain on sale of 105 basis points.

During the year, United Wholesale Mortgage had total volume of $163.4 billion compared with $139.4 billion for 2024. Gain on sale was 116 basis points across 2025, up from 110 basis points the prior year.

Purchase made up $93.2 billion of full year volume, with refinancings at $70.3 billion. This was the fourth consecutive year where UWM was the No. 1 originator, and the 11th year where it did the most in the wholesale channel, Ishbia said on the call.

Total revenue of $945.2 million in the fourth quarter included net servicing income of $186.4 million. This compares with $843.3 million and $169 million respectively in the third quarter and $720.6 million and $173.3 million in the fourth quarter of 2024.

What's next for UWM

During the quarter UWM Holdings entered into an agreement to purchase Two Harbors, a real estate investment trust branded as Two, including its Roundpoint mortgage servicing subsidiary. This acquisition will assist with the company's project to bring the servicing function in-house, a move it embarked on after its subservicer, Mr. Cooper, agreed to be (and now has been) acquired by Rocket Cos.

In the earnings release, UWM noted its artificial intelligence enhanced income calculator for mortgage brokers, as well as its ongoing collaboration with Bilt.

With all of those, UWM now has "a closed loop platform to help position us, to accelerate broker channel growth and drive consumer attention for us and the channel," Ishbia said on the call.

UWM Holdings anticipates its total revenue for the first quarter to be between $650 million and $850 million. The midpoint, $750 million, is slightly below KBW's current estimate of $768 million but above the Street estimate of $716 million, George said.