UWM sues Two Harbors over failed merger deal, seeks to recover more than $500M

United Wholesale Mortgage (UWM) filed a lawsuit on Monday that accuses Two Harbors Investment Corp. (TWO) of willfully breaching its merger agreement and committing fraud while pursuing a competing deal with CrossCountry Mortgage (CCM). UWM alleges TWO’s leadership deliberately undermined the stockholder process for UWM’s transaction, including by sabotaging the March 16 meeting scheduled to approve the deal. UWM also claims TWO threatened to sell RoundPoint Mortgage Servicing Corp., its servicing subsidiary, to CCM if UWM would not agree to keep TWO’s business operating after an acquisition. UWM is seeking more than $500 million in damages, citing alleged lost profits, expected synergies, foregone capital-efficiency opportunities, and costs incurred to keep the deal on track, among other items. In the complaint, UWM says TWO’s “chicanery, backroom dealing, and prioritization of management self-interest over its contractual and other legal obligations inflicted significant financial harm.” The prospect of litigation was flagged last week by UWM president and CEO Mat Ishbia after the company reported a $451.9 million net loss for the second quarter of 2026. UWM attributed the result...