CrossCountry Mortgage has agreed to buy Two Harbors for $10.80 per share in cash, up from its earlier $10.70 offer. The deal lifts Two Harbors’ stock by 0.71% as the company exits a pending merger with UWM Holdings. CrossCountry also will pay a $25.4 million termination fee owed to UWM.

Two Harbors, a mortgage servicing firm, had been negotiating a merger with UWM Holdings before the new offer. The cash bid signals CrossCountry’s confidence in the U.S. mortgage market’s resilience amid tightening credit conditions. Investors view the higher price as a premium for Two Harbors’ portfolio and loan‑originating capabilities.

Analysts expect the acquisition to boost CrossCountry’s loan‑originating volume by roughly 10% and expand its geographic footprint into the Midwest. The transaction also removes a potential regulatory hurdle, as the UWM merger would have faced scrutiny over market concentration. Shareholders of Two Harbors will receive cash, simplifying the transition.

With the deal closed, CrossCountry will add Two Harbors’ $1.2 billion loan book to its balance sheet, positioning it among the top 15 U.S. mortgage originators. The cash payment and termination fee underscore the firm’s willingness to pay a premium for strategic assets, setting a benchmark for future consolidation in the sector.