worst day on record

UWM Holdings, the parent company of United Wholesale Mortgage, experienced its worst day on record on Thursday following a significant plunge in its stock price. The company suspended its quarterly dividend and raised $2.05 billion in fresh capital from Oaktree Capital Management and SFS Group Capital LLC, a family-owned investment vehicle.

UWM CEO Mat Ishbia stated that the company is taking decisive action to strengthen its position. The capital raise comes as UWM's financial position weakened, with total equity falling to about $1 billion as of June 30 from $1.6 billion at the end of March, and available liquidity standing at approximately $1.3 billion. The mortgage lender's performance has been impacted by a challenging operating environment, with mortgage rates tied to the Treasury market contributing to low homebuyer activity and limited refinancing.

UWM reported a loss of $451.9 million in the second quarter, down from a profit of $314.5 million a year earlier, as mortgage originations totaled $39.7 billion, unchanged from the previous quarter.

Brief written by urgent.news from CNBC's own syndicated text. Machine-written — may contain errors; check the original before relying on it.