UWM Holdings to Acquire Two Harbors in $1.3B All-Stock Merger to Create Mortgage Servicing Giant

Key Highlights

• This all-stock transaction is valued at ~$1.3 billion in equity, based on a fixed exchange ratio of 2.3328x.
• The acquisition incorporates Two Harbors, which is a prominent mortgage servicing rights/MSR-focused real Estate Investment Trust and owner of RoundPoint Mortgage Servicing LLC, into UWM’s operations to create a more resilient and profitable business model.
• A primary driver of the deal is the massive expansion of UWM’s servicing capabilities.
• The transaction adds a high-quality MSR portfolio with a $176 billion unpaid principal balance/UPB, nearly doubling UWM’s existing book to a total of ~$400 billion.
• This scale positions the combined company as the eighth-largest mortgage servicer in the US.