CrossCountry Mortgage's acquisition of Two Harbors Investment Corp. moved a significant step closer to completion Thursday after Two Harbors shareholders voted to approve the transaction.
The mortgage servicing rights (MSR)-focused real estate investment trust announced that, based on a preliminary vote count at its reconvened special meeting of stockholders on July 2, shareholders approved the previously announced merger agreement with CrossCountry Mortgage. Final voting results will be certified by the independent inspector of elections and filed with the U.S. Securities and Exchange Commission in a forthcoming Form 8-K.
The shareholder vote marks one of the final major milestones before the transaction can close.
Under the merger agreement, CrossCountry Merger Corp., a wholly owned subsidiary of CrossCountry Mortgage, will merge into Two Harbors, with Two Harbors surviving as a wholly owned subsidiary of CrossCountry Mortgage.
Shareholders To Receive Cash Consideration
Upon closing, holders of Two Harbors common stock will receive $12.00 per share in cash, without interest. Shareholders will also receive a pro-rated stub dividend covering the portion of the current quarter through the day before the transaction closes, based on the company's most recent quarterly dividend.
Meanwhile, holders of Two Harbors' Series A, Series B and Series C preferred shares will receive $25.00 per share, plus any accumulated and unpaid dividends, in accordance with the terms governing those securities.
Closing Expected In August
The companies said the transaction remains on track to close in August 2026, subject to customary closing conditions.
Regulatory approvals continue to advance. The companies previously received early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act on May 21, satisfying the federal antitrust review. They have also secured 48 of the 53 required state regulatory and agency approvals, leaving five approvals outstanding before the merger can be completed.
Why It Matters
For CrossCountry Mortgage, the acquisition represents another step in its broader strategy to expand its servicing platform and deepen its presence in mortgage servicing rights.
Unlike lenders that routinely sell servicing after closing loans, owning a larger servicing portfolio can provide recurring servicing revenue while creating additional opportunities to maintain borrower relationships throughout the life of a mortgage. As servicing has become an increasingly strategic asset across the industry, lenders have continued investing in platforms that offer greater long-term customer retention and operational stability.
The transaction has generated significant industry discussion in recent months, underscoring how valuable servicing platforms have become as lenders look for new ways to strengthen long-term borrower relationships and diversify revenue.
Once finalized, the deal will bring Two Harbors' MSR-focused investment platform under the CrossCountry Mortgage umbrella, further expanding the independent mortgage lender's servicing footprint.
