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Once there was a sorcerer cursed by insanity named Wythrandil.
Wythrandil wanted to be the greatest wizard ever born and the favorite of the goddess of shadow, Kathra. So he planned a cruel experiment to create a berserker. He tried to incarnate the soul of a rabid wolf into the body of a strong warrior. It failed terribly.
A combination of both corpses was the result, tall like a human but still a wolf. That was the birth of the first werewolf and because of the fact that two souls live in a werewolf they're able to change their shape but it isn't a controlled transformation. Often it is triggered by anger because of the illness of rabies. Now a angry werewolf, controlled by his thirst for blood, stood right in front of Wythrandil and Wythrandil lost control. The werewolf ate him so that nothing of Wythrandil was left. Time after time more people became werewolves, some got bitten by werewolves, others are the children of werewolves, both is triggerd by the rabies and the rabies mutated to a hereditary disease called lykanthrophy. The chance that a child is infected with lykanthrophy is at 25 % per infected parent. Today there are many more werewolves because not only a bite creates a werewolf also 1/4 of the children become werewolves and the amount of werewolves becomes bigger with every new generation. So the werewolves build a cave colony in the Ruintroth-Mountains, which are located in the north between the lands of Lethalia and Terok. With a mix of the buildingtype of dwarves and men they create a mountain-/minecity and live there called "The Horde".