"Under the agreement, UWM will acquire Two Harbors' $176 billion in unpaid principal balance (UPB) mortgage servicing rights (MSRs), nearly doubling its servicing portfolio to $400 billion. The companies expect the transaction to generate approximately $150 million in annual cost and revenue synergies, while improving earnings. Additional efficiencies are anticipated in financing, hedging and secondary-market execution, leveraging Two Harbors' capital markets expertise alongside UWM's scale."
"In January 2024, Two Harbors launched a strategy to expand into mortgage origination. Scale has become more important than ever in the mortgage industry, Bill Greenberg, Two's president and CEO, said in a statement. We are very excited to partner with the largest mortgage lender in the country, bringing our expertise in MSR investing and servicing through the RoundPoint platform."
"As part of the transaction, the combined company's board will expand to 11 directors, with one seat designated by Two Harbors. Two Harbors shareholders will receive 2.3328 shares of UWMC Class A common stock for each share of Two common stock, valuing at $11.94 per share a 21% premium to the 30-day volume-weighted average price ending Dec. 16.The transaction will increase UWM's public float by 93% to nearly 513 million shares. On a pro forma fully diluted basis, UWM shareholders will own ap"
UWM will acquire Two Harbors' $176 billion in unpaid principal balance mortgage servicing rights, nearly doubling its servicing portfolio to $400 billion and increasing public float substantially. The transaction is expected to generate approximately $150 million in annual cost and revenue synergies and improve earnings through efficiencies in financing, hedging and secondary-market execution by combining capital markets expertise with scale. Management highlights bringing servicing in-house and reinvesting increased cash flow into the broker network. Two Harbors plans to expand into mortgage origination and will designate one board seat in the combined company.
Read at www.housingwire.com
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