UWM Bid for Two Harbors Acquisition Terminated

United Wholesale Mortgage (UWM) terminated its bid to acquire Two Harbors Investment Corp. after deeper diligence and market conditions undermined the economics of an all-stock approach. UWM said the MSR book was the main value and that it would not chase the deal beyond its disciplined approach.

Analysts cited a sharp decline in UWM’s stock price as a key factor. UWM had closed at $5.12 prior to the deal announcement and traded near $3.60 on Wednesday morning, a level that limited broad institutional ownership. The article also notes UWM’s reliance on organic growth and that the company has historically not pursued acquisitions.