UWM to Acquire Two Harbors

The merger nearly doubles UWM’s mortgage servicing portfolio and aims to unlock $150 million in annual synergies.

December 18, 2025

UWM Expands Mortgage Dominance Through Strategic Acquisition of Two Harbors

UWM Holdings is taking another step forward in reshaping the mortgage landscape. The company has signed a definitive agreement to acquire Two Harbors Investment Corp. in an all-stock deal valued at $1.3 billion. The merger gives UWM direct access to one of the country’s largest conventional mortgage servicing platforms—and sets the stage for faster growth, greater scale, and a more efficient capital structure.

Two Harbors brings a $176 billion portfolio of mortgage servicing rights (MSRs) to the table. Once combined, UWM’s servicing book will nearly double to $400 billion, immediately increasing recurring revenue and elevating UWM to one of the top 10 servicers nationwide. For a company already leading the wholesale origination market, this move adds servicing scale and strengthens operational control—particularly as UWM continues its transition to managing servicing in-house.

There’s also real upside in the numbers. UWM expects approximately $150 million in annual cost and revenue synergies, driven by both operational efficiencies and a larger platform to run them on. The stronger balance sheet and improved cash flow will support continued investments in growth, while also allowing UWM to maintain dividend payouts to shareholders at both companies.

This isn’t just about scale—it’s about strategic alignment. Two Harbors' MSR specialization and RoundPoint servicing platform fit directly into UWM’s servicing goals. Their capital markets experience brings added depth to UWM’s financing, hedging, and secondary market execution. And with a single, integrated platform post-merger, both teams can move faster, make better use of data, and deliver more value to brokers and borrowers alike.

Transaction Structure and Ownership Impact

The transaction will also expand UWM’s public float by 93%, with total outstanding shares reaching approximately 513 million. Upon closing, UWM shareholders will hold roughly 87% of the combined company, while Two Harbors shareholders will hold 13%. The board will expand by one seat, filled by a Two Harbors designee.

Key terms of the transaction include:

• Two Harbors stockholders will receive 2.3328 shares of UWMC Class A common stock for each TWO share.


• The implied value per TWO share is $11.94, representing a 21% premium over its 30-day average price as of December 16, 2025.


• The all-stock structure is intended to be tax-free to Two Harbors stockholders.

The deal has been unanimously approved by both companies’ boards and is expected to close in the second quarter of 2026, pending shareholder and regulatory approvals.

With this merger, UWM is reinforcing its position at the center of the mortgage ecosystem—connecting origination and servicing under one roof, and setting itself up to move faster and operate more efficiently in any market environment.