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UWM Holdings Corp. (UWMC) is set to acquire Two Harbors Investment Corp. (TWO) in a $1.3 billion all-stock deal, which is expected to nearly double UWM’s existing mortgage servicing rights (MSR) book to about $400 billion and create a significant source of recurring revenue.
Following the transaction, UWM shareholders will own about 87% of the combined company, with Two Harbors Investment shareholders holding roughly 13%.
Under the agreement, UWM will acquire Two Harbors Investment at a fixed exchange ratio of 2.3328 shares of UWMC stock for each share of TWO, valuing the latter at $11.94 per share.
TWO’s mortgage servicing expertise will help UWM accelerate the growth of its servicing portfolio. It is expected to support stronger, long-term value creation for stockholders.
The added capabilities should generate more leads for UWM’s broker network. The combination also strengthens UWM’s servicing platform and overall competitive position.
The transaction is expected to close in the second quarter of 2026.
At the time of writing, UMMC stock was down 3.7% while TWO shares surged nearly 10%.
Retail sentiment on UWMC on Stocktwits turned 'bullish', amid 'high' message volumes.
One user highlighted the long term prospects.
Year-to-date, UWMC stock fell nearly 18%, while TWO was down around 6%.
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