Just when you thought all the mortgage M&A was done for the year, one last one snuck in.
Well, there are actually two more weeks in the year, so maybe I shouldn’t call it just yet.
But the latest one involves the nation’s largest mortgage lender and a big time loan servicer.
I’m talking about United Wholesale Mortgage (UWM) and Two Harbors Investment Corp., which simply goes by the name “TWO.”
Together, it will give UWM even more reach to attempt to recapture borrowers in need of a refinance, second mortgage, or subsequent home purchase.
2025 Has Been All About Vertical Integration in Mortgage/Real Estate
Prior to 2025, the mortgage and real estate world was very fragmented. It still certainly is, but it’s become less so.
We already saw Rocket acquire Redfin and Mr. Cooper, and Lower take over Movoto., and Zillow build out its captive lender Zillow Home Loans via its massive listing portal and real estate agent network.
Now we’ve got the nation’s largest mortgage lender, UWM, grabbing a major loan servicer to beef up its control of the process from start to finish.
Lately, there’s been a big push to control more of the loan journey, whether it’s top of the funnel real estate listing websites/apps, or the end piece, the loan servicing.
Rocket has done both by snagging Redfin and its millions in pageviews for home listings, while also scooping up Mr. Cooper, one of the larger loan servicers in the nation.
This allows them to acquire more new customers at the top, then retain them well beyond just the origination process.
When it comes time to refinance the mortgage later, or take out a home equity loan, they’ll be top of mind.
In fact, they’ll probably reach out before the borrower even knows they want/need something, thanks to emerging technology driven by AI.
This is why I always say if a lender reaches out, reach out to other lenders. Be sure you don’t just let the first company to come to you take your business.
UWM + TWO = 8th Largest Mortgage Loan Servicer in the Nation
Anyway, UWM will soon own Two Harbors Investment Corp. (NYSE: TWO), described as one of the largest servicers of conventional mortgages in the country via its wholly-owned subsidiary RoundPoint Mortgage Servicing.
It will be an all-stock transaction valued at $1.3 billion, based on a fixed exchange ratio of 2.3328X.
This comes on the heels of UWM bringing all of its loan servicing in-house as well.
The combined company will soon service over $400 billion in mortgage servicing rights (MSRs) and rank 8th among mortgage loan servicers nationwide.
It means UWM will take over the servicing of the loan, collecting monthly payments, handling escrow accounts, loss mitigation, etc.
As for why they’re doing it, it will “provide more opportunities to UWM’s mortgage broker network through leads, driving more consumers to work with a mortgage broker.”
That’s the name of the game. Recapture. It’s been a common theme all year and I wouldn’t be surprised if UWM makes another acquisition to get even bigger.
Are These Mortgage Companies Asking for Trouble?
One issue I see with acquiring all these loan servicing rights is what things might look like if mortgage delinquencies rise significantly.
If we somehow enter a nasty housing market downturn again and a bunch of loans go sideways, these companies will have to spend a lot of money on loss mitigation.
Instead of recapturing more business for their mortgage brokers via refinances and home equity loans, they might have to deal with processing a loan modification.
That won’t be nearly as fun for them, and would likely be costly as well.
Having to deal with an uptick in mortgage lates, short sales, foreclosures, etc. is likely not what they have in mind.
This isn’t to say that happens, but there is risk in becoming a big loan servicer when your primary business is to make new home loans.
Of course, it’s the playbook now so I expect to see more of it in 2026 and beyond.
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 19 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on X for hot takes.