Fitch Ratings downgraded the long-term issuer default ratings of United Wholesale Mortgage (UWM) to B+ from BB-, citing a sharp increase in leverage driven by second-quarter losses and higher borrowings. UWM’s ratings outlook is stable, Fitch said.

UWM’s corporate leverage, measured as gross nonfunding debt to tangible equity, jumped to 6.1x at the end of the second quarter, up from 3.2x at the end of the first quarter.

“This is up significantly from 1.2x at YE23, and Fitch believes leverage will remain above the previous downgrade trigger of 2.0x over the outlook horizon,” Fitch said in a report details ⇒

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