Two Harbors Investment Corp. used its latest dividend announcement to reaffirm expectations that its pending sale to CrossCountry Mortgage remains on track for an August closing.
The mortgage servicing rights (MSR)-focused real estate investment trust said it plans to continue paying regular quarterly dividends until the transaction is completed and expects to declare a prorated dividend during the quarter in which the merger closes.
"As previously disclosed, TWO has entered into a merger agreement with CrossCountry Mortgage, LLC pursuant to which CCM will acquire TWO in an all-cash transaction, which is expected to close in August 2026," the company stated in announcing its second-quarter dividend.
The update comes less than a week after Two Harbors disclosed that United Wholesale Mortgage allowed a previously granted waiver period to expire without submitting a revised acquisition proposal. The company's board subsequently reaffirmed its recommendation that shareholders approve the CrossCountry transaction.
While the announcement included no new developments related to the merger itself, it provided another indication that the company continues to operate under the expectation that the transaction will proceed as planned.
Two Harbors declared a second-quarter common stock dividend of $0.34 per share, payable July 15 to shareholders of record as of July 2. The company also declared dividends on its Series A, Series B, and Series C preferred shares, payable July 27 to shareholders of record as of July 10.
For mortgage industry executives, the broader significance lies in what the transaction reveals about the growing value of mortgage servicing rights.
The competition between CrossCountry Mortgage and UWM for Two Harbors highlighted the premium many lenders continue to place on servicing assets and servicing-related cash flows. As origination volumes have remained volatile, servicing portfolios have become increasingly important sources of recurring revenue, liquidity, and earnings stability.
That trend has become a recurring theme across the mortgage industry in recent years. What was once viewed primarily as an operational function has increasingly evolved into a strategic asset, helping lenders diversify revenue streams and reduce dependence on cyclical origination income.
Two Harbors, which invests in mortgage servicing rights, residential mortgage-backed securities, and related assets, emerged as one of the industry's most closely watched acquisition targets as lenders sought to expand their servicing footprint.
The company's latest announcement follows months of acquisition-related developments, including competing interest from UWM and an amended merger agreement that increased CrossCountry Mortgage's all-cash offer.
