Two Harbors Investment Corp. has received final regulatory approval for its acquisition by CrossCountry Mortgage (CCM), clearing the way for the real estate investment trust (REIT) to become a wholly owned subsidiary of the retail lender, the company announced Friday.
The merger is scheduled to close before the market opens on Aug 25.
Under the deal, TWO stockholders will receive $12 in cash for each share of common stock held immediately before the effective time of the merger. Shareholders of record as of the close of business on Aug. 24, will also receive a stub period dividend of $0.20326 per share, which will be paid alongside the merger consideration. The stub period dividend “will not reduce or otherwise affect the merger consideration,” TWO said.
TWO is an MSR-focused REIT and a top servicer of conventional loans through its RoundPoint Mortgage Servicing platform. It had a $158.89 billion owned servicing portfolio as of the first quarter, per Inside Mortgage Finance. The CCM servicing book was at $202 billion in the same period.
Investors approved the deal on July 2, following a bidding war with United Wholesale Mortgage (UWM).
In December 2025, TWO agreed to sell to UWM in an all-stock deal that would have been UWM’s first acquisition. At that point, UWM was paying about $11.94 per share. But UWM’s share price declined, Two Harbors walked away from the agreement and CCM emerged with an all-cash offer of $10.80 per share.
Between April and May, UWM raised its cash-and-stock proposals, but the Two Harbors board repeatedly reaffirmed its support for the CCM bid, pointing to greater regulatory certainty.
CCM also raised its cash bid from $10.80 per share in March to $11.30 in April and then to $12 in May, adding a dividend component. The current price came in at a 19% premium to TWO’s end of March tangible book value.
In 2025, CCM produced $51 billion in mortgages, making it the No. 7 overall lender and the top distributed retail mortgage lender, according to industry rankings.
