UWM Holdings Corporation announced a revised acquisition proposal for Two Harbors Investment Corp. on April 30 2026, offering $12.00 in cash per Two Harbors share or 2.3328 UWM shares for each Two Harbors share. The offer represents a $0.70 premium over CrossCountry Mortgage’s $11.30 per‑share bid and is backed by a $1.3 billion unsecured bridge facility from Mizuho Bank, giving UWM the liquidity to close the transaction.
The strategic rationale behind the bid is to double UWM’s mortgage servicing‑rights (MSR) portfolio to roughly $400 billion. Two Harbors is expected to contribute a $176 billion UPB MSR portfolio, which would bring servicing in‑house and create a closed‑loop platform that could enhance revenue and margin opportunities for UWM’s wholesale mortgage operations.
In an open letter to Two Harbors shareholders, UWM directly criticized the target’s board for not acting in shareholders’ best interests. UWM stated, “We are writing directly to you because we believe that you deserve to receive unfiltered information about our current and prior offers and we do not believe that the Board of Directors (the “Board”) of Two Harbors Investment Corp. (“TWO” or “Two Harbors”) is telling you the full story.” The letter also warned that the board’s actions constitute “entrenchment,” adding, “They did not negotiate on your behalf with us. Instead, they just had CrossCountry raise the bare minimum to match what is essentially the floor value of our prior offer and then made it harder for UWMC to offer you more value by agreeing to a higher termination fee with CrossCountry.”
UWM highlighted that CrossCountry’s financing terms were not disclosed and that the termination fee payable to CrossCountry was increased from $25.4 million to $50 million. UWM argues that this higher fee materially hinders its ability to offer a more attractive deal and benefits CrossCountry’s management at the expense of Two Harbors shareholders.
Two Harbors shareholders are scheduled to vote on the CrossCountry transaction on May 19 2026. UWM’s revised offer is intended to influence that vote and to reassert its position in the bidding war. The bid reflects UWM’s confidence in its financing and its strategic goal of transforming the company into a leading mortgage servicer with a robust, in‑house servicing platform.
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