All-stock acquisition set to nearly double UWM's servicing book and reshape MSR competition
UWM Holdings Corporation has agreed to acquire Two Harbors Investment Corp in an all-stock transaction valued at $1.3 billion, a move that would almost double its mortgage servicing rights (MSR) portfolio and push the lender deeper into a scale-driven corner of the market.
The combined company would service about $400 billion in loans, ranking eighth among United States servicers by volume.
Under the agreement, Two Harbors shareholders would receive 2.3328 shares of UWMC Class A common stock for each share of TWO, valuing the stock at $11.94 based on UWM’s December 16 close and representing a 21% premium to Two Harbors’ 30‑day volume-weighted average price.
The all-stock structure is intended to be tax-free for Two Harbors investors, with closing targeted for the second quarter of 2026, subject to shareholder and regulatory approvals.
UWM projected about $150 million in annual cost and revenue synergies and said the transaction would meaningfully increase earnings accretion and raise UWM’s public float to about 513 million shares.
“Scale has become more important than ever in the mortgage industry,” Bill Greenberg, president and CEO of Two Harbors, said.
“We are very excited to partner with the largest mortgage lender in the country, bringing our expertise in MSR investing and servicing through the RoundPoint platform.”
Context from a consolidating servicing market
UWM is the largest wholesale mortgage lender in the US. It holds about a 15% share of the broker channel and ended the second quarter of 2024 with roughly $2.7 billion of available liquidity.
In 2022, the company reported $931.9 million in earnings and said it became the “#1 overall mortgage lender in America” while originating exclusively through the wholesale channel.
Two Harbors, founded in 2009, operated as an MSR-focused REIT that invested primarily in mortgage servicing rights and agency residential mortgage-backed securities, with more than 60% of its capital allocated to hedged MSR.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
