UWM Holdings Corp (NYSE:UWMC), the parent of United Wholesale Mortgage, sued Two Harbors Investment Corp.
(NYSE:TWO) in federal court Monday, seeking more than $500 million after a failed acquisition left the mortgage lender with a $603 million loss tied to interest-rate hedges.
The Wall Street Journal reported Tuesday that UWM alleges Two Harbors breached its contract and sabotaged their planned merger.
UWM had agreed in December to acquire Two Harbors, a real estate investment trust focused on mortgage servicing, for about $1.3 billion in stock.
The deal fell apart in March after Two Harbors chose a cash offer from another buyer.
