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CrossCountry Mortgage clears shareholder approval for Two Harbors deal
The acquisition adds a $159B mortgage servicing portfolio and expands CCM from No. 15 to No. 8 among top servicers by owned portfolio.
HousingWire reports that CrossCountry Mortgage has secured shareholder approval for its $1.26B acquisition of Two Harbors Investment Corp., moving the deal closer to closing.
The transaction would add about $159B in servicing to CCM’s roughly $202B portfolio, increasing the lender’s scale in mortgage servicing rights, where analysts said integration will be a key next hurdle.
Analysts cited modest integration risk but warned that leverage could rise on a pro forma basis. Inside Mortgage Finance data referenced by HousingWire also indicates the combined servicing could lift CCM from No. 15 to No. 8 among top servicers by owned portfolio.
HousingWire adds that the price included a bidding battle with United Wholesale Mortgage that increased the deal price by about $126M. CCM also adjusted its cash bid from $10.80 per share in March to $11.30 in April and then to $12 in May, and HousingWire notes the current price was set at a 19% premium to TWO’s end of March tangible book value.