Two Harbors Sweetens CrossCountry Mortgage Deal to $12 Per Share
Event summary
- Two Harbors Investment Corp. (TWO) raises all-cash merger consideration to $12.00 per share from $11.30 per share.
- CrossCountry Mortgage's offer now represents one of the highest multiples paid for a mortgage REIT.
- Transaction expected to close in Q3 2026, with 35 of 53 required state mortgage licensing approvals already obtained.
- TWO stockholders' meeting scheduled for May 19, 2026 to approve the transaction.
- UWMC's competing offer currently valued at $7.88 per TWO share as of May 7, 2026.
The big picture
This amended agreement underscores the strategic value of TWO's mortgage servicing rights portfolio in a consolidating mortgage REIT landscape. The increased cash consideration reflects competitive bidding dynamics and CrossCountry Mortgage's commitment to a swift, certain close. The transaction's scale—valued at $12.00 per share—positions it among the highest multiples in the mortgage REIT sector, signaling confidence in TWO's assets amid evolving regulatory and market conditions.
What we're watching
- Regulatory Approvals
- The pace at which CrossCountry Mortgage secures the remaining 18 state mortgage licensing approvals will determine the transaction's timeline.
- Stockholder Voting
- Whether TWO stockholders will overwhelmingly approve the amended deal at the May 19 special meeting, given the increased cash consideration.
- Competitive Dynamics
- How UWMC may respond to the sweetened offer, potentially influencing TWO stockholder decisions or regulatory scrutiny.
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