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UWM sues Two Harbors, seeks over $500M after alleged merger fraud
The lawsuit says Two Harbors disrupted the March 16 stockholder vote tied to a $1.3 billion merger agreement.
United Wholesale Mortgage is suing Two Harbors Investment Corp., alleging the REIT breached a $1.3 billion merger agreement and committed fraud while pursuing a competing deal with CrossCountry Mortgage, according to HousingWire. UWM claims Two Harbors leadership sabotaged the March 16 shareholder vote, delayed key investor outreach materials, and prioritized executive payouts, and it also alleges Two Harbors threatened to sell RoundPoint Mortgage Servicing Corp. to CCM unless UWM agreed to keep Two Harbors’ business operating after an acquisition. The company is seeking more than $500 million in damages, citing alleged lost profits, expected synergies, foregone capital-efficiency opportunities, and costs incurred to keep the transaction on track. The lawsuit, filed by UWM Holdings Corp. and UWM Acquisitions 1 LLC in U.S. District Court for the District of Maryland’s Northern Division, follows UWM flagging litigation risk last week after reporting a $451.9 million net loss for the second quarter of 2026, including a $603.2 million derivatives loss connected to the potential acquisition.