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

3 days ago 2

Maham Fatima

Sun, December 28, 2025 astatine 11:46 AM CST 2 min read

UWM Holdings Corporation (NYSE:UWMC) is 1 of the cheap penny stocks to put in. On December 17, UWM Holdings Corporation announced a definitive merger statement to get Two Harbors Investment Corp. (NYSE:TWO). This all-stock transaction is valued astatine ~$1.3 cardinal successful equity, based connected a fixed speech ratio of 2.3328x. The acquisition incorporates Two Harbors, which is simply a salient owe servicing rights/MSR-focused existent Estate Investment Trust and proprietor of RoundPoint Mortgage Servicing LLC, into UWM’s operations to make a much resilient and profitable concern model.

A superior operator of the woody is the monolithic enlargement of UWM’s servicing capabilities. The transaction adds a high-quality MSR portfolio with a $176 cardinal unpaid main balance/UPB, astir doubling UWM’s existing publication to a full of ~$400 billion. This standard positions the combined institution arsenic the eighth-largest owe servicer successful the US. By bringing this measurement in-house, UWM expects to make important recurring gross and supply its owe broker web with enhanced pb procreation to thrust user engagement.

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

Financially, the merger is expected to beryllium highly accretive, with the accidental for ~$150 cardinal successful yearly outgo and gross synergies. UWM intends to usage Two Harbors’ specialized superior markets expertise to make caller efficiencies successful financing, hedging, and secondary marketplace activities. The resulting beardown pro forma currency travel and fortified equilibrium expanse are designed to let the institution to proceed its existent dividend argumentation for stockholders of some entities portion maintaining assertive concern successful the broker channel.

UWM Holdings Corporation (NYSE:UWMC) engages successful the origination, sale, and servicing of residential owe lending successful the US.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.