St. Louis Park, Minnesota-based Two Harbors Investment Corp.is being acquired by CrossCountry Intermediate Holdco LLC, an affiliate of CrossCountry Mortgage in in an all-cash deal valued at $10.80 per share.
CrossCountry said the acquisition comes after Two Harbors’ termination of its previously announced merger deal with United Wholesale Mortgage Holdings Corp. CrossCountry will pay UWMC a $25.4 million termination fee on behalf of Two Harbors.
“We are extremely excited to partner with the entire TWO team on this strategic transaction, combining TWO’s best-in-class capital markets team and RoundPoint’s established servicing infrastructure and operational expertise with CCM’s #1 retail origination and servicing platform,” said Ron Leonhardt, Founder and CEO of CrossCountry Mortgage. “This transaction further solidifies CCM’s position as a one-of-one player in the mortgage market, with the #1 retail origination platform for the third year in a row and the #6 non-bank servicing platform with over $370 billion in unpaid principal balance.”
The deal is expected to close in the second half of 2026.
The combination of CrossCountry, the nation’s largest distributed retail mortgage lender, with TWO’s mortgage servicing rights portfolio and RoundPoint’s mortgage servicing platform, creates a fully integrated mortgage company, CrossCountry said. Combined, CrossCountry said the platform spans the full mortgage customer lifecycle — from origination through servicing — driving higher customer retention, recurring revenue streams, and lower customer acquisition costs.
Before the close of the merger, TWO said it intends to pay regular quarterly dividends. TWO does not intend to pay a partial dividend for the quarter in which the closing occurs in the event the closing does not occur as of quarter-end.
Under the terms of the agreement, TWO stockholders will receive $10.80 in cash for each share of TWO common stock. Holders of TWO’s Series A, Series B and Series C Preferred Stock will have their shares redeemed after the close of the transaction at $25.00 per share, plus any accumulated and unpaid dividends, in accordance with the terms of the preferred stock.
TWO Stock to be Delisted
Ater the deal is completed, TWO common stock will be delisted from the New York Stock Exchange and TWO will cease to be a publicly traded company, and TWO will become a wholly owned subsidiary of CrossCountry.
Earlier in March, CrossCountry announced a deal has been reached for it to purchase Summit Funding, Inc., a privately held mortgage banking and servicer with its headquarters located in Sacramento, California. CrossCountry Mortgage’s (CCM) acquisition of Summit Funding will unite two successful retail lenders.
Houlihan Lokey Capital Inc. is acting as financial advisor and Jones Day is acting as legal counsel to TWO. Citigroup Global Markets Inc. is acting as financial advisor and Simpson Thacher & Bartlett LLP is acting as legal counsel to CCM.
Two Harbors Investment Corp., a Maryland corporation, is a real estate investment trust that invests in mortgage servicing rights, residential mortgage-backed securities, and other financial assets.
CrossCountry Mortgage is the nation’s number one distributed retail mortgage lender with more than 8,000 employees operating over 700 branches and servicing loans across all 50 states, the District of Columbia and Puerto Rico.
