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Two Harbors seeks return of $25.4M breakup fee from UWM
The REIT filed its counterclaim on Oct. 1 in federal court, asking for the termination fee back plus damages tied to alleged fraudulent misstatements.
Two Harbors Investment Corp. filed a counterclaim on Oct. 1 against UWM Holdings Corp. in federal court, seeking the return of its $25.4 million merger termination fee and damages tied to alleged fraudulent misstatements, HousingWire reports.
The REIT says UWM breached their now-defunct merger agreement by concealing its deteriorating financial condition, making an outsized and speculative interest rate trade, and misrepresenting its intentions to combine operations after the deal closed, according to HousingWire.
Two Harbors and UWM entered into a merger agreement in December 2025 for a stock-for-stock transaction valued at $1.3 billion, the article notes. Two Harbors terminated UWM’s deal in March 2026 and later accepted a competing offer from CrossCountry Mortgage, with CCM and TWO closing their transaction in late August.
The counterclaim comes after UWM filed a lawsuit against Two Harbors in August in the U.S. District Court for the District of Maryland’s Northern Division, seeking more than $500 million in damages and alleging Two Harbors leadership sabotaged a shareholder meeting scheduled to approve the transaction, HousingWire reported.