Non-controlling Interests

9 Months Ended

Sep. 30, 2021

NOTE	11 – NON-CONTROLLING INTERESTS

The

non-controlling

interest balance represents the economic interest in Holdings LLC held by SFS Corp. The following table summarizes the ownership of units in Holdings LLC as of

September

30, 2021:


	Common Units		Ownership Percentage
UWM Holdings Corporation ownership of Class A Common Units		100,367,478		6.26	%
SFS Corp. ownership of Class B Common Units		1,502,069,787		93.74	%

Balance at end of period		1,602,437,265		100.00	%

The

non-controlling

interest holders have the right to exchange Class B Common Units, together with a corresponding number of shares of our Class D common stock or Class C common stock (together referred to as “Stapled Interests”), for, at the Company’s option, (i) shares of the Company’s Class B common stock or Class A common stock or (ii) cash from a substantially concurrent public offering or private sale (based on the price of the Company’s Class A common stock). As such, future exchanges of Stapled Interests by

non-controlling

interest holders will result in a change in ownership and reduce or increase the amount recorded as

non-controlling

interest and increase or decrease additional

paid-in-capital

or retained earnings when Holdings LLC has positive or negative net assets, respectively. As of

September

30, 2021, SFS Corp. has not exchanged any Stapled Interests.

During the nine months ended September 30, 2021, the Company issued 5,890 shares of Class A common stock under its stock-based compensation plan and repurchased and retired 2,742,617 shares of Class A common stock, pursuant to the Board’s authorization of the share repurchase program on May 9, 2021. This resulted in an equivalent net reduction in the number of Class A Common Units of Holdings LLC held by the Company, and a remeasurement of the

non-controlling

interest in Holdings LLC due to the change in relative ownership of Holdings LLC with no change in control. The impact of the

re-

measurement

of the

non-controlling

interest is reflected in the condensed consolidated statement of changes in equity.