CrossCountry Mortgage Closes Two Harbors Deal, Bolstering Servicing Portfolio

CrossCountry Mortgage (CCM) has officially received final regulatory approval for its acquisition of Two Harbors Investment Corp. (TWO), culminating a protracted bidding war that captivated the mortgage industry. Announced via a company press release on August 21, 2026, this all-cash transaction is slated to close before market open on August 25, 2026, marking a significant strategic expansion for the Cleveland-based retail lending giant.

TWO common stockholders will receive $12.00 per share in cash for each share held, with an additional stub period dividend of $0.20326 per share for stockholders of record at the close of business on August 24, 2026. Upon completion, Two Harbors, headquartered in St. Louis Park, Minnesota, will become a wholly owned subsidiary of CCM and its common stock will be delisted from the New York Stock Exchange, as reported by National Mortgage News.

How Did the Bidding War Conclude?

The final approval brings to an end a fierce, months-long bidding war between CrossCountry Mortgage and United Wholesale Mortgage (UWM). The saga began in December 2025 when Two Harbors initially agreed to an all-stock merger with UWM Holdings Corporation, valued at approximately $1.3 billion at the time.

However, the landscape shifted dramatically in March 2026 when Two Harbors disclosed an unsolicited, all-cash bid from CrossCountry Mortgage. Two Harbors subsequently terminated its agreement with UWM and entered into a definitive merger agreement with CCM on March 27, 2026, with an initial offer of $10.80 per share. What followed was a series of escalating offers: CCM increased its bid to $11.30 per share on April 28, 2026. UWM countered with an unsolicited $11.30 cash bid, which CrossCountry matched. UWM then raised its cash offer to $12 per share, appealing directly to TWO shareholders, a figure CrossCountry promptly matched. Though UWM made a final offer of $12.50 per share, the Two Harbors board ultimately rejected it, with shareholders approving CrossCountry's proposal on July 2, 2026.

Federal antitrust approval came early via the Hart-Scott-Rodino Antitrust Improvements Act of 1976 on May 21, 2026, followed by a significant majority of state regulatory approvals by July 2026. The final state approval was secured just prior to August 24, 2026, paving the way for the merger, as confirmed by HousingWire and Scotsman Guide.

What Does This Acquisition Mean for CrossCountry Mortgage?

For CrossCountry Mortgage, this acquisition represents a significant strategic move to enhance its business model. Upon closing, CrossCountry will gain control of Two Harbors' valuable mortgage servicing rights (MSR) portfolio, its capital-markets operation, and the RoundPoint Mortgage Servicing platform. This integration is designed to combine RoundPoint's robust servicing infrastructure and Two Harbors' capital-markets team with CrossCountry's expansive retail origination platform.

CrossCountry founder and CEO Ron Leonhardt has positioned this deal to add a substantial stream of recurring servicing income to CCM's operations. The combined company is projected to manage a servicing portfolio exceeding $370 billion in unpaid principal, according to the research notes. CrossCountry announced in early August 2026 that its parent company priced an upsized offering of $750 million unsecured senior notes at 7.750% due 2031, with proceeds intended to finance the deal.

What Does This Mean for Two Harbors Stockholders?

Common stockholders of Two Harbors will receive $12.00 in cash per share. Additionally, a stub period dividend of $0.20326 per share will be paid to stockholders of record as of August 24, 2026, coinciding with the merger consideration. Holders of Two Harbors' Series A, Series B, and Series C preferred stock will have their shares redeemed at $25.00 per share, plus any accumulated and unpaid dividends, following the transaction's close. Post-merger, Two Harbors will cease to be a publicly traded entity, with its common stock delisting from the New York Stock Exchange.

What About the UWM Lawsuit?

While the merger is set to close, an ongoing legal dispute casts a shadow. United Wholesale Mortgage (UWM) filed a lawsuit against Two Harbors on August 10, 2026, seeking more than $500 million in damages. UWM alleges that Two Harbors breached its original merger agreement and committed fraud by improperly facilitating CCM's competing bid. Two Harbors has vehemently denied these accusations, labeling UWM's lawsuit as “baseless” and “frivolous.” The closing of the merger does not resolve this legal dispute, and its outcome remains to be seen.

Specific details regarding the integration of Two Harbors and RoundPoint, including potential staffing, branding, or operational changes, have not been disclosed by the companies. The legal battle with UWM is also unresolved, with allegations yet to be proven in court.