UWM Holdings Corporation (NYSE: UWMC), the parent of United Wholesale Mortgage (UWM), is acquiring Two Harbors Investment Corp. (NYSE: TWO), a real estate investment trust, in an all-stock transaction for $1.3 billion.
Two Harbors is one of the nation’s largest servicers through its wholly owned subsidiary RoundPoint Mortgage Servicing LLC. According to the companies, the acquisition will enable UWM to nearly double its mortgage servicing rights portfolio to approximately $400 billion.
The companies did not announce the executive integration of Two Harbors into UWM, although the board of the combined company is expected to expand to 11 directors through the addition of one new director designated by Two Harbors.
“This transaction is a true win for both stockholders and our mortgage broker partners, which is why it makes so much sense,” said Mat Ishbia, chairman, president and CEO of UWM. “The timing of doubling our servicing book as we bring servicing in-house is the perfect alignment, allowing us to deliver meaningful upside to stockholders and leverage increased cash flow to invest deeper into the broker network.”
Bill Greenberg, Two Harbors’ president and CEO, added “Scale has become more important than ever in the mortgage industry. We are very excited to partner with the largest mortgage lender in the country, bringing our expertise in MSR investing and servicing through the RoundPoint platform.”
Photo: Mat Ishbia of UWM
