Key facts
- Two Harbors Investment Corp. shareholders approved the sale to CrossCountry Mortgage (CCM).
- The sale price is $12 per share in cash, plus a pro-rated stub dividend.
- Preferred stockholders will receive $25 per share plus accumulated dividends.
- United Wholesale Mortgage (UWM) was a rival bidder.
- The deal is expected to close in August 2026, pending regulatory approvals.
Shareholders of Two Harbors Investment Corp. have approved the company's sale to an affiliate of CrossCountry Mortgage (CCM) for $12 per share, concluding a protracted bidding war with United Wholesale Mortgage (UWM).
The virtual shareholder meeting, initially scheduled for May 19, was delayed four times as the parties sought to secure shareholder support. Two Harbors, a mortgage REIT focused on MSRs and operating the RoundPoint Mortgage Servicing platform, had a $158.89 billion owned servicing portfolio as of the first quarter. CCM's servicing book stood at $202 billion, while UWM's was $229.5 billion.
A CCM spokesperson stated the partnership would combine Two Harbors' capital markets team, RoundPoint's servicing expertise, and CCM's retail origination business. Holders of Two Harbors' Series A, B, and C preferred stock will have their shares redeemed at $25 per share, plus accumulated dividends.
Two Harbors' board unanimously recommended the CCM deal, citing the certainty of an all-cash offer and significant regulatory progress, with 48 of 53 required approvals obtained. The transaction is expected to close in August 2026, subject to remaining regulatory and agency approvals.
UWM had presented a competing offer of $12.50 per share in cash or a stock option of 2.3328 shares of UWMC. However, based on UWM's stock price of $2.26 on Thursday, the stock option implied a value of approximately $5.27 per Two Harbors share. A UWM spokesperson commented that their offers were superior but the board's conduct was inappropriate.
The dispute began in December 2025 when Two Harbors initially agreed to sell to UWM in an all-stock deal valued at approximately $11.94 per share. Two Harbors later terminated that agreement due to UWM's declining share price, leading CCM to emerge with a higher all-cash offer.