UWM Holdings Corp. (NYSE: UWMC), the indirect parent of United Wholesale Mortgage, has announced a $1.3 billion all‑stock acquisition of Two Harbors Investment Corp. (NYSE: TWO). The deal will add Two Harbors’ $206 billion in mortgage servicing rights and $10 billion in agency RMBS to UWM’s portfolio, bringing the combined servicing book to roughly $400 billion and positioning the company as the eighth‑largest mortgage servicer in the United States.
Under the terms of the transaction, each Two Harbors share will be exchanged for 2.3328 UWM shares, giving Two Harbors shareholders a 21 % premium over the 30‑day VWAP of Two Harbors stock as of December 16 2025. The all‑stock structure values the equity of Two Harbors at $1.3 billion and preserves the liquidity of both companies’ shareholders.
The acquisition is a key milestone in UWM’s strategy to bring servicing in‑house and scale its broker network. By doubling its servicing book, UWM will gain greater hedging flexibility, unlock $150 million in annual cost and revenue synergies, and increase its public float, which management says will make the stock more investable. The deal also aligns with a broader industry trend toward consolidation, as larger servicers can leverage technology and scale to reduce costs and improve customer experience.
Mat Ishbia, Chairman, President and CEO of UWM, said the transaction is a “true win for both stockholders and our mortgage broker partners” and that the timing of the deal “aligns perfectly with our goal of doubling our servicing book as we bring servicing in‑house.” Bill Greenberg, President and CEO of Two Harbors, added that the partnership would allow the company to “partner with the largest mortgage lender in the country, bringing our expertise in MSR investing and servicing through the RoundPoint platform.”
The deal comes after Two Harbors reported a $466 million net loss and a $1.36 EPS shortfall in its Q3 2025 earnings call, while UWM posted a $23.3 million net income in Q3 2024 and a $40.6 million net income in Q4 2024, reflecting a shift toward government production and increased refinance activity. The acquisition offers Two Harbors shareholders a premium exit amid a challenging earnings environment, while UWM’s expanding servicing book is expected to drive long‑term profitability.
The transaction is expected to close in the second quarter of 2026, subject to customary regulatory approvals and shareholder consent. Upon completion, UWM shareholders will own approximately 87 % of the combined entity, with former Two Harbors shareholders holding the remaining 13 %.
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