Two Harbors Investment Corp. invests in, finances, and manages mortgage servicing rights (MSRs), agency residential mortgage-backed securities (RMBS), and other financial assets through RoundPoint in the United States. Its target assets include agency RMBS collateralized by fixed-rate, adjustable-rate, or hybrid mortgage loans or derivatives, as well as other financial and mortgage-related assets such as non-agency securities and non-hedging transactions. The company qualifies as a REIT for federal income tax purposes. Incorporated in 2009, it is headquartered in Saint Louis Park, Minnesota, and as of August 25, 2026, operates as a subsidiary of CrossCountry Mortgage, LLC.
Two Harbors Nears $12 Cash Buyout by CrossCountry Mortgage
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CrossCountry's $12 all-cash offer wins bidding war CrossCountry Mortgage's all-cash $12.00 per share offer beat UWM's stock-heavy bid, and Two Harbors' board deemed it superior. This locks in a cash price for shareholders and removes the uncertainty of a contested merger, supporting TWO's price near the deal value.
The winning bid is the central force setting TWO's price near $12.
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Final regulatory approval clears path to close Two Harbors received the last regulatory approval needed, with the merger expected to close before market open on August 25, 2026. Shareholders will get $12.00 per share cash plus a $0.20326 stub dividend, making the deal essentially certain and anchoring TWO's price to the payout.
Final approval and a firm closing date are the decisive new events that make the deal near-certain.
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UWM threatens litigation after losing the deal UWM, which lost the bidding war, secured a $2 billion capital infusion and said it plans to sue Two Harbors and CrossCountry over the failed transaction. A lawsuit could create legal costs and distraction, a real counterweight even as the merger closes.
This is the main remaining risk that could weigh on TWO despite the deal closing.
Q3 2026
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Two Harbors Nears $12 Cash Buyout by CrossCountry Mortgage
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CrossCountry's $12 all-cash offer wins bidding war CrossCountry Mortgage's all-cash $12.00 per share offer beat UWM's stock-heavy bid, and Two Harbors' board deemed it superior. This locks in a cash price for shareholders and removes the uncertainty of a contested merger, supporting TWO's price near the deal value.
The winning bid is the central force setting TWO's price near $12.
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Final regulatory approval clears path to close Two Harbors received the last regulatory approval needed, with the merger expected to close before market open on August 25, 2026. Shareholders will get $12.00 per share cash plus a $0.20326 stub dividend, making the deal essentially certain and anchoring TWO's price to the payout.
Final approval and a firm closing date are the decisive new events that make the deal near-certain.
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UWM threatens litigation after losing the deal UWM, which lost the bidding war, secured a $2 billion capital infusion and said it plans to sue Two Harbors and CrossCountry over the failed transaction. A lawsuit could create legal costs and distraction, a real counterweight even as the merger closes.
This is the main remaining risk that could weigh on TWO despite the deal closing.
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TWO Receives Final Regulatory Approval for CrossCountry Mortgage Merger
Two Harbors Investment Corp. has received the final regulatory approval needed to complete its merger with CrossCountry Mortgage, with the deal expected to close before market open on August 25, 2026. At closing, CrossCountry Merger Corp., a wholly owned subsidiary of CrossCountry Mortgage, will merge into Two Harbors, which will survive as a wholly owned subsidiary. Two Harbors stockholders will receive $12.00 per share in cash, plus a stub period dividend of $0.20326 per share for stockholders of record at the close of business on August 24, 2026. The stub dividend will be paid with the merger consideration and will not reduce the merger price.
TWO · Capital · Positive Two Harbors receives final regulatory approval for merger with CrossCountry Mortgage, with stockholders receiving $12.00 per share cash plus stub dividend.
CrossCountry Mortgage, LLC · Capital · Positive CrossCountry Mortgage's merger with Two Harbors receives final regulatory approval, enabling the deal to close.
Three High Yield Mortgage REITs Run Divergent Playbooks
Two Harbors Investment, Cherry Hill Mortgage Investment, and Invesco Mortgage Capital are pursuing sharply different strategies despite being grouped as high-yield mortgage REITs. Two Harbors is pinned near its $12 per share cash buyout price after a 26.74% year-to-date gain, with the deal expected to close on Aug. 3. Cherry Hill surged 21.16% in the week ending Aug. 14 after TPG Mortgage Investment Trust agreed to acquire it for 0.3063 MITT shares plus 93 cents cash per CHMI share, an implied $3.10 value and 29% premium. Invesco Mortgage Capital remains the only standalone operator, paying a 19% annualized monthly dividend from an $8.2 billion Agency portfolio that grew 12.4% quarter-over-quarter.
UWM Holdings secures $2 billion capital infusion from Oaktree and CEO
UWM Holdings Corporation announced a $2 billion capital infusion from Oaktree Capital Management and CEO Mathew Ishbia, fortifying its balance sheet after a failed acquisition of mortgage servicing rights from Two Harbors. The transaction includes a $1.5 billion investment from Oaktree and a commitment of up to $550 million from Ishbia, bringing total equity to $3 billion and reducing the non-funding debt-to-equity ratio from a peak of 5.6x to 1.2x. The company suspended its quarterly dividend to prioritize equity retention, and management expects annual interest savings of $100 million from repaying MSR lines, partially offset by a 10% coupon on the preferred equity issued to Oaktree. UWM reported second-quarter operating income of $180 million on loan origination volume of $40 billion, down from $44.9 billion in the first quarter, and management said the company can handle up to $300 billion in annual volume if rates decline. Ishbia also confirmed plans for litigation against Two Harbors and CrossCountry, citing inappropriate actions during the failed transaction.
Five9 to Join S&P SmallCap 600, Replacing Two Harbors Investment
Five9 will join the S&P SmallCap 600 index, replacing Two Harbors Investment effective prior to the opening of trading on Monday, August 3. The change follows CrossCountry Mortgage's pending acquisition of Two Harbors Investment, which is expected to close soon pending final conditions. Five9, trading under ticker FIVN, will be added to the Information Technology sector, while Two Harbors Investment, ticker TWO, will be removed from the Financials sector.
UWM Holdings Stock May Be Undervalued After Failed Two Harbors Bid
UWM Holdings stock may be trading below fair value following the failed Two Harbors acquisition bid and talk of a possible dividend cut. The Excess Returns model estimates an intrinsic value of about $2.56 per share, implying the stock is 20.7% undervalued relative to its current market price. The company also trades at a price-to-earnings ratio of about 10.4 times, well below the diversified financial industry average of 15.6 times and the fair multiple of 17.1 times implied by its fundamentals. However, a mixed value score of 4 out of 6 checks suggests the discount may reflect genuine business risks rather than a clear bargain. The key question is whether recent concerns prove temporary or signal deeper capital allocation uncertainty.
UWMC · Capital · Neutral Article discusses UWM's stock being potentially undervalued after failed Two Harbors bid and dividend cut talk, but also notes business risks and mixed value score, making impact unclear.
TWO · Capital · Negative UWM's failed acquisition bid for Two Harbors is mentioned as a negative event for UWM, but Two Harbors itself is not discussed; the failed bid implies Two Harbors rejected the offer, which could be seen as negative for Two Harbors' shareholders if the bid was attractive.
Two Harbors Investment Stock Looks Fairly Priced But Sales Look Expensive
Two Harbors Investment stock appears fairly valued when considering its approved cash merger with CrossCountry Mortgage at US$12.00 per share, though a sales-based metric suggests it is overvalued. The Excess Returns model estimates an intrinsic value of US$13.40 per share, about 9.8% above the recent price of US$12.08, but the market price is holding close to the deal level due to remaining closing and regulatory risks. In contrast, the stock trades at a price-to-sales ratio of 2.6 times, which is below the Mortgage REITs industry average of 4.7 times but far above a fair ratio benchmark of 0.2 times that heavily penalizes the company for risk and revenue quality. The mixed valuation signals leave investors weighing whether the apparent discount compensates for deal execution risks.
TWO · Capital · Neutral Article discusses Two Harbors' merger valuation and price-to-sales ratio, giving mixed signals on fair value.
CrossCountry Mortgage, LLC · Capital · Neutral CrossCountry Mortgage is mentioned as the merger counterparty but not analyzed; impact depends on deal completion.
United Wholesale Mortgage, or UWM, lost its bid to acquire mortgage REIT Two Harbors after a bidding war with privately held CrossCountry Mortgage. UWM had initially agreed to a $1.3 billion all-stock deal in late 2025, but CrossCountry Mortgage later offered an all-cash deal that Two Harbors deemed superior. CrossCountry Mortgage's cash offer rose from an original $10.70 per share to $12, or roughly $1.3 billion, even after UWM offered $12.50 in cash for Two Harbor shareholders who preferred cash over 2.3328 shares of UWM. UWM showed discipline by not pursuing the deal further, which may benefit shareholders given the company's 20% dividend yield and earnings that do not currently cover the dividend. Loan origination volume in the first quarter of 2026 rose 39% year over year, marking the second-highest first quarter production in company history.
Two Harbors Investment Corp. stockholders voted to approve the merger with CrossCountry Mortgage at a reconvened special meeting on July 2, 2026. Under the deal, each share of TWO common stock will be converted into the right to receive $12.00 in cash, plus a pro-rated stub dividend for the portion of the quarter before closing. Holders of TWO's Series A, Series B and Series C preferred stock will have their shares redeemed at $25.00 per share plus accumulated and unpaid dividends after the closing. The transaction has received early antitrust clearance and 48 of 53 required state regulatory approvals, with closing expected in August 2026 subject to remaining conditions.
TWO · Capital · Positive Stockholders approved merger with CrossCountry Mortgage, with $12.00 per share cash consideration and preferred redemption at $25.00.
CrossCountry Mortgage, LLC · Capital · Positive Merger with Two Harbors approved, enabling CrossCountry Mortgage to become a publicly traded entity.
Two Harbors Adjourns Special Meeting on CCM Acquisition to July 2
Two Harbors Investment Corp. has adjourned its Special Meeting of Stockholders to July 2, 2026, to allow more time to solicit proxies for its acquisition by an affiliate of CrossCountry Mortgage. The board continues to unanimously recommend stockholders vote in favor of the deal, which offers $12.00 per share in cash plus a pro-rated stub dividend, representing a 21% premium to the unaffected share price and a 119% premium to fully diluted tangible book value. The transaction is fully financed with no financing contingency, and 47 of the 53 required regulatory approvals have been secured, with closing expected in August 2026. Stockholders who have already voted in favor do not need to take any further action.
TWO · Capital · Positive The acquisition by CrossCountry Mortgage offers $12.00 per share in cash, a 21% premium to unaffected price and 119% premium to tangible book value, with strong board support and progress on regulatory approvals.
CrossCountry Mortgage, LLC · Capital · Positive CrossCountry Mortgage's affiliate is acquiring Two Harbors at a premium, with fully financed deal and most regulatory approvals secured, indicating a strategic expansion.
UWMC Urges Two Harbors Stockholders to Vote Against CCM Merger Ahead of June 23 Meeting
UWM Holdings Corporation reaffirmed its commitment to acquire Two Harbors Investment Corp. and urged TWO stockholders to vote against the proposed merger with CrossCountry Mortgage at the upcoming special meeting on June 23. UWMC stated that its proposal offers higher value, including a full option to elect $12.50 per share in cash, compared to CCM's $12.00 per share agreement, and provides stockholder choice through stock consideration. The company criticized the TWO Board's engagement as a smokescreen and called for open, good-faith negotiations. Independent proxy advisors ISS, Glass Lewis, and Egan-Jones have all recommended voting against the CCM transaction.
UWM's Merger Fight With Two Harbors Spotlights 60% Stock Slide
United Wholesale Mortgage CEO Mat Ishbia is locked in a merger battle with Two Harbors Investment Corp. that highlights a roughly 60% decline in UWM's stock over five months. Ishbia's $1.3 billion bid for the mortgage servicer faces resistance because Two Harbors leaders want an all-cash offer and say UWM's financial condition is deteriorating. Two Harbors shareholders are set to vote June 23 on a competing $12-per-share cash bid from CrossCountry Mortgage, while a class-action complaint accuses Two Harbors management of violating fiduciary duty by abandoning UWM's offer. UWM's shares have fallen 49% this year, and Ishbia's net worth has dropped more than 34% to $6.6 billion, according to the Bloomberg Billionaires Index. The company also faces lawsuits over its business practices, including a $100 million suit from rival Rocket Mortgage and a complaint from minority owners of Ishbia's NBA team, the Phoenix Suns.
UWMC · Capital · Negative UWM's stock has fallen 60% over five months, its bid for Two Harbors faces resistance, and it faces lawsuits from Rocket Mortgage and minority owners.
TWO · Capital · Negative Two Harbors faces a competing bid from CrossCountry Mortgage and a class-action lawsuit over fiduciary duty, creating uncertainty and potential legal costs.
CrossCountry Mortgage, LLC · Competition · Positive CrossCountry Mortgage's competing $12-per-share cash bid for Two Harbors positions it to potentially acquire the target, strengthening its competitive stance.
Two Harbors Investment Corp Declares Second Quarter 2026 Dividends
Two Harbors Investment Corp declared a dividend of $0.34 per share of common stock for the second quarter of 2026. The dividend is payable on July 15, 2026 to common stockholders of record at the close of business on July 2, 2026. The company also declared preferred stock dividends for the second quarter, including $0.50781 per share for its 8.125% Series A Cumulative Redeemable Preferred Stock, $0.47656 per share for its 7.625% Series B Cumulative Redeemable Preferred Stock, and $0.56513 per share for its 7.25% Series C Cumulative Redeemable Preferred Stock, all payable on July 27, 2026 to stockholders of record on July 10, 2026. Two Harbors noted that it has entered into a merger agreement with CrossCountry Mortgage, LLC, which is expected to close in August 2026, and intends to pay regular quarterly dividends consistent with past practice prior to closing, as well as a pro-rated dividend for the quarter in which the merger closes.
TWO · Capital · Positive Declared regular quarterly dividends for common and preferred stock, signaling financial stability and shareholder returns.
CrossCountry Mortgage, LLC · Capital · Positive Merger with Two Harbors is expected to close in August 2026, providing a strategic exit or growth opportunity.
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