TWO and CrossCountry Mortgage Finalize Strategic Merger Agreement
Two Harbors Investment Corp. (NYSE: TWO) has entered into a strategic merger agreement with CrossCountry Mortgage, LLC (often referred to as CrossCountry or CCM). Under this agreement, CrossCountry will acquire all outstanding shares of TWO common stock at a price of $10.80 per share in cash.
The merger will result in the cancellation of a previously established agreement between TWO and UWM Holdings Corporation (NYSE: UWMC), which was signed on December 17, 2025. In conjunction with this deal, CrossCountry has agreed to pay a termination fee of $25.4 million to UWM, and the special meeting of TWO stockholders set for April 7, 2026, to approve the UWM merger has been called off.
Benefits of the Merger
This merger seeks to combine CrossCountry’s position as the nation’s largest distributed retail mortgage lender with TWO’s mortgage servicing rights portfolio. Together, they aim to create a fully integrated mortgage company that will streamline operations across the entire mortgage lifecycle, from origination through servicing.
Ron Leonhardt, Founder and CEO of CrossCountry Mortgage, expressed enthusiasm about the partnership, citing potential synergies and the strengths of both companies. The merger is anticipated to enhance customer retention, generate recurring revenue streams, and lower customer acquisition costs.
Transaction Specifics
- Common stockholders of TWO will receive $10.80 in cash per share.
- Series A, B, and C Preferred Stock will be redeemed at $25.00 per share plus any unpaid dividends.
- The merger has received unanimous approval from TWO’s Board of Directors.
- The deal is expected to close in the second half of 2026, pending stockholder and regulatory approvals.
Post-merger, TWO’s common stock will be delisted from the New York Stock Exchange, and the company will cease to exist as a publicly traded entity, becoming a wholly owned subsidiary of CrossCountry.
Advisors Involved
For the merger, TWO is advised by Houlihan Lokey Capital, Inc. as the financial advisor, with legal counsel from Jones Day. Meanwhile, CrossCountry has engaged Citigroup Global Markets Inc. and Simpson Thacher & Bartlett LLP for financial and legal advisory services, respectively.
About the Companies
Two Harbors Investment Corp. is headquartered in St. Louis Park, Minnesota. It is a real estate investment trust (REIT) engaged in investing in mortgage servicing rights and residential mortgage-backed securities.
CrossCountry Mortgage, based in the United States, operates more than 700 branches and employs around 8,000 staff. The company is recognized for its extensive range of mortgage solutions and has made the Inc. 5000 list of America’s fastest-growing private businesses ten times.
The proposed merger aligns with the companies’ aspirations for growth and improved operational synergy in the competitive mortgage market.
