CrossCountry boosts cash payout in bid for Two Harbors

"The outcome of the Two Harbors sale process will determine the future owner of a sizable mortgage servicing rights (MSR) portfolio and servicing platform. CrossCountry, the country's largest distributed retail mortgage lender by headcount, has been expanding its servicing and asset capabilities as lenders seek more fee-based and recurring revenue to offset volatile origination volumes."

CrossCountry Mortgage will add a pro rata quarterly dividend payment for Two Harbors Investment Corp. stockholders as it seeks approval for its planned acquisition. Under the binding merger agreement, Two Harbors stockholders will receive a pro-rated dividend for the quarter in which the acquisition closes, subject to legally available funds. Based on Two Harbors’ latest quarterly distribution, the added dividend could provide up to $0.34 per share in incremental cash. If the deal closes in the third quarter of 2026, the merger consideration plus the second-quarter dividend and the pro-rated third-quarter dividend would total an estimated $12.45 to $12.68 per share. CrossCountry also urged stockholders to vote for the merger at a May 19 special meeting, citing full financing and progress on regulatory approvals.

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