Two Harbors Investment says it will officially merge into CrossCountry Mortgage tomorrow, wrapping a merger saga almost two years in the making.
Processing Content
The real estate investment trust said the deal is expected to close prior to market open tomorrow, following the completion of a lingering state approval. Two will be a wholly owned subsidiary of the private Cleveland-based retail lending giant, and the REIT's stockholders will receive $12.00 per share in cash for each share of Two held prior to the merger.
That payout to Two stockholders will be bolstered by a stub period dividend equal to $0.20326 per share of Two common stock. The dividend was part of CrossCountry's bidding war with rival United Wholesale Mortgage, which Two had originally attempted to merge with.
The spurned suitor has criticized Two's handling of their dealings and is suing the REIT in federal court, in a lawsuit which won't hinder Tuesday's merger completion.
How Two Harbors got acquired
Two Harbors says it first received an unsolicited offer from UWM in December 2024, according to a Securities and Exchange Commission filing earlier this year. As the REIT weighed UWM's interest, three other unnamed companies approached Two with offers, which the company ultimately rejected in favor of UWM's deal.
The sides announced their agreement in December 2025, an all-stock transaction valued at $1.3 billion. However in March, Two disclosed it received an unsolicited all-cash bid from a then-unnamed CrossCountry. UWM and CrossCountry embarked on a public bidding war, with Two shareholders in July opting for the latter's offer over the former's $12.50 per share offer.
Earlier this month, CrossCountry announced its parent company priced an upsized offering of $750 million unsecured senior notes at 7.750% due 2031. Proceeds will be used to repay borrowing on mortgage-backed securities facilities CCM is drawing upon to close the deal.
What's next
In its final earnings report last month, Two Harbors posted a $49.4 million profit, reversing larger losses it posted in 2025. As of June 30, the company's RoundPoint business serviced $155.1 billion and subserviced $40.8 billion.
CrossCountry claims it's been the nation's top retail lender for the past three years, and scooped up Summit Funding shop in March. The company also announced an undisclosed, significant investment into a newly formed builder division this year.
UWM is suing Two Harbors for $500 million for breach of contract, a lawsuit that Two has slammed. The wholesale lender is also reckoning with the fallout of a massive hedge bet it lost in anticipation of the Two acquisition.
