WD net income falls 91% to $3.0M as $3.0M in fraud-tied credit losses hit Q2 2026

Filed August 6, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 7, 2025 · ~2 min read

Key Changes

• high

  Net income collapsed 91.1% to $3.0M (diluted EPS $0.09, down 90.9%) as the company recognized $54.3M in collateral-based reserves on $193.3M of repurchased or indemnified loans tied to fraudulent sponsors, including a $49.3M forbearance agreement and defaults on previously performing repurchased loans.

  MD&A: Fraudulent sponsor credit losses verify on EDGAR →
• high

  Defaulted loans doubled to 16 loans ($198.6M UPB) from 8 loans ($108.5M UPB) year-over-year, with collateral-based reserves rising to $23.7M from $8.6M; provision for risk-sharing obligations jumped 8x to $10.4M in Q2 2026 from $1.3M in Q2 2025.

  MD&A: Defaulted loans verify on EDGAR →
• high

  Fannie Mae raised the full risk-sharing cap from $300M to $400M per loan, increasing maximum loss exposure from $60M to $80M per loan while enabling the company to originate larger loans under full risk-sharing terms that carry higher servicing fees.

  MD&A: Fannie Mae full risk-sharing cap verify on EDGAR →