UWM Holdings Corp. Announces $1.3 B All‑Stock Acquisition of Two Harbors Investment Corp.
The New York‑listed holding company that underwrites residential mortgage loans, UWM Holdings Corp. (UWMC), announced on December 17, 2025 that it will acquire Two Harbors Investment Corp. (TWO) in an all‑stock transaction valued at $1.3 billion. The deal, structured as an equity exchange, is expected to increase UWM’s servicing footprint and enhance its portfolio of mortgage servicing rights.
Deal Structure and Valuation
- Equity value: $1.3 billion
- Deal type: All‑stock
- Transaction partner: Two Harbors Investment Corp., a New York‑based servicer of conventional mortgages.
The acquisition was reported by multiple financial outlets, including Seeking Alpha, Law360, and MLex, and confirmed by the companies’ legal advisers. The transaction is expected to be completed in the 2026 calendar year pending customary regulatory approvals.
Market Reaction
Following the announcement, the UWM Holdings share price fell 5.1 % on December 17, closing at $4.85 on December 17, 2025. The decline reflects investor caution amid the large‑scale transaction and the recent sale of shares by the company’s CEO.
On December 18, a note from feeds.feedburner.com indicated that analyst ratings on the stock were updated, with a price target raised. By December 19, Investing.com reported that Jefferies had initiated coverage with a Hold rating and a $5.00 target price. Meanwhile, The Motley Fool described the stock as being “mashed” during the week, suggesting heightened volatility.
CEO Share Sale
On December 11–12, 2025, Mat Ishbia, President and CEO of UWM Holdings, sold 1,224,574 Class A common shares (2.75 % of the company) through SFS Corp. in open‑market transactions, generating $6.80 million. The sale was disclosed in an SEC filing and reported by todayheadline.co. The transaction has contributed to recent downward pressure on the stock price.
Strategic Rationale
UWM Holdings positions itself as a holding company that provides underwriting and closing documentation for residential mortgage loans originated by independent brokers, correspondents, small banks, and local credit unions. The acquisition of Two Harbors, a large servicer of mortgage servicing rights, is intended to broaden UWM’s service offerings and create synergies across the mortgage value chain.
Key Metrics
| Item | Value |
|---|---|
| Market Cap | $7.99 billion |
| Price‑to‑Earnings Ratio | 82.82 |
| 52‑Week High | $7.14 (September 10, 2025) |
| 52‑Week Low | $3.80 (June 17, 2025) |
| Closing Price (Dec 17, 2025) | $4.85 |
The company’s stock is listed on the New York Stock Exchange and trades in USD. Analysts are monitoring the completion of the acquisition, the integration of Two Harbors’ assets, and the company’s ability to maintain its underwriting and servicing quality during the transition.
