Two Harbors Investment Acquired by CrossCountry Mortgage — Financial Services M&A

CrossCountry Mortgage has entered into a definitive agreement to acquire Two Harbors Investment Corp. in an all-cash merger valued at $10.80 per share. The transaction is expected to combine CrossCountry’s retail mortgage origination platform with Two Harbors’ mortgage servicing rights (MSR) portfolio and RoundPoint servicing infrastructure. Two Harbors will become a wholly owned subsidiary of CrossCountry, and its common shares are expected to be delisted from the New York Stock Exchange following closing. The deal follows Two Harbors’ termination of a prior merger agreement with UWM Holdings, with CrossCountry agreeing to pay a $25.4 million breakup fee to clear the way for the new transaction.

Both companies operate in the U.S. mortgage market, with Two Harbors focused on MSRs and residential mortgage-backed securities and CrossCountry building scale in retail lending and servicing. The strategic rationale centers on creating a more integrated mortgage company spanning origination through servicing, with the aim of strengthening customer retention, expanding recurring revenue, and improving cost efficiency. The combined platform is positioned to support the full mortgage lifecycle, leveraging CrossCountry’s retail distribution and Two Harbors’ servicing capabilities.

Under the terms announced, Two Harbors common shareholders will receive $10.80 in cash per share, while preferred shareholders are to have their shares redeemed at $25.00 per share plus accrued and unpaid dividends. Two Harbors’ board has approved the transaction and recommended shareholder support. The company expects the deal to close in the second half of 2026, subject to shareholder approval and customary regulatory clearances, with no financing condition attached.