Key facts
- Two Harbors Investment Corp. has received final regulatory approval for its acquisition by CrossCountry Mortgage (CCM).
- The acquisition is scheduled to be completed before the market opens on August 25.
- Two Harbors shareholders will receive $12 in cash per share.
- A stub period dividend of $0.20326 per share will be paid to shareholders of record as of August 24.
- The deal follows a bidding war with United Wholesale Mortgage (UWM).
Two Harbors Investment Corp. has received final regulatory approval for its acquisition by CrossCountry Mortgage (CCM), paving the way for the real estate investment trust (REIT) to become a wholly owned subsidiary of the retail lender. The merger is slated to close before the market opens on August 25.
Under the terms of the agreement, Two Harbors stockholders will receive $12 in cash for each share of common stock they hold. Additionally, shareholders of record as of the close of business on August 24 will receive a stub period dividend of $0.20326 per share, which will be paid alongside the merger consideration and will not affect the merger price.
Two Harbors, which focuses on MSRs and operates the RoundPoint Mortgage Servicing platform, had an owned servicing portfolio valued at $158.89 billion in the first quarter. CCM's servicing book stood at $202 billion during the same period.
The deal's approval by investors on July 2 followed a competitive bidding process that included United Wholesale Mortgage (UWM). Initially, Two Harbors had agreed to a stock deal with UWM in December 2025, but UWM's declining share price led Two Harbors to exit that agreement. CCM then emerged with an all-cash offer.
CCM progressively increased its cash bid from an initial $10.80 per share in March to $11.30 in April and finally to $12 per share in May, also incorporating a dividend component. This final offer represented a 19% premium over Two Harbors' tangible book value at the end of March.
In 2025, CCM originated $51 billion in mortgages, ranking it as the seventh-largest overall lender and the top distributed retail mortgage lender, according to industry data.