Key facts
- United Wholesale Mortgage (UWM) has filed a lawsuit against Two Harbors Investment Corp. (TWO).
- UWM is seeking over $500 million in damages.
- The lawsuit alleges fraud by Two Harbors.
- UWM accuses Two Harbors of a willful breach of their merger agreement.
- UWM claims Two Harbors prioritized management self-interest over contractual obligations.
- The legal action is related to a failed merger between the two companies.
United Wholesale Mortgage (UWM) has initiated legal action against Two Harbors Investment Corp. (TWO), seeking more than $500 million in damages. The lawsuit alleges that Two Harbors committed fraud and willfully breached their merger agreement. UWM contends that Two Harbors deliberately acted against the terms of their contract, prioritizing the self-interest of its management over its contractual obligations. This legal battle arises from the collapse of a previously agreed-upon merger between the two mortgage industry entities. UWM's complaint details accusations of fraudulent behavior by Two Harbors, leading to the substantial financial claim.