TWO Responds to Baseless Claims by UWMC
TWO (Two Harbors Investment Corp., NYSE: TWO), an MSR-focused REIT, today responded to the baseless lawsuit filed against the company by UWM Holdings Corporation (UWMC).
As previously disclosed, the TWO board of directors, consistent with its fiduciary duties and its contractual obligations, has secured $12.00 per share in cash for all TWO stockholders in a transaction with CrossCountry Mortgage (CCM). The CCM transaction, which was approved by TWO shareholders on July 2, 2026, is scheduled to close as soon as the last state regulatory approval is received, which is expected in August.
The lawsuit filed by UWMC is frivolous and raises serious questions about UWMC's public disclosures. TWO's previously released concerns regarding UWMC's intent and/or ability to close any transaction with TWO has now been thoroughly vindicated. UWMC's stock price has collapsed - it is down almost 70% year-to-date, after UWMC finally disclosed its $600 million derivatives loss, which had been rumored to have occurred since May 19, 2026. The loss highlights the dire condition of UWMC's balance sheet, liquidity and also casts doubt on its risk management and other governance practices. UWMC now says that this loss was related to a "hedge" of TWO’s MSR portfolio -- a portfolio that was already expertly hedged by TWO, not owned by UWMC, and under a binding contract to be sold to CCM. UWMC wishes the market to believe that its $600 million loss is related to a risk position that was approximately 13x the total interest rate exposure of TWO's MSR portfolio assuming it was unhedged, which UWMC knew full well it wasn't.
