UWM Walked Away From the Two Harbors Bidding War

Corporate Action

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Summary · why it matters

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.