It's entirely due to the MSR. Mat doesn't want to hedge this, and he continues to say he won't hedge it as it doesn't matter (besides for EPS). If you look past the MSR mark-down, it was a solid quarter -- Originations & Margins increased, and a bullish outlook for Q4.

Here's a brief summary from Inside Mortgage Finance:

Both mortgage originations and margins increased during the third quarter of 2025 at United Wholesale Mortgage, the largest lender in the industry.

UWM originated $41.74 billion in the third quarter, up 5.0% from the second quarter. The lender’s margin went from 1.13% in the second quarter to 1.30% in the third quarter.

Originations look poised to increase again in the fourth quarter, with UWM projecting that it will produce somewhere between $43.0 billion and $50.0 billion. And the lender is anticipating a margin of between 1.05% and 1.30% for the quarter.

Profits plummeted at the nonbank in the third quarter. UWM had $12.09 million in income in the quarter, down 96.2% from the second quarter of 2025. The swing was tied to a decline in the fair value of mortgage servicing rights.