New York, February 2, 2026, 12:53 EST — Regular session
- UWMC shares climbed roughly 8.6% to $5.33 by midday, following a close at $4.91 in the previous session.
- After the bell, investors are eyeing quarterly results from Two Harbors Investment Corp, while UWM moves forward with its stock-for-stock acquisition.
- Late last week, UWM submitted a Form S-4 registration statement for the business combination.
Shares of UWM Holdings Corp climbed 8.6%, hitting $5.33 by 12:44 p.m. EST Monday, after reaching an intraday high of $5.41. The stock had closed at $4.91 the day before.
The surge arrives ahead of Two Harbors’ quarterly earnings report, set to drop after Monday’s close—a key moment for a deal that depends heavily on stock valuations and balance-sheet adjustments. (Nasdaq)
In December, UWM struck a $1.3 billion all-stock deal to acquire Two Harbors, offering 2.3328 UWM shares for each Two Harbors share. The deal aims to generate around $150 million annually in cost savings and revenue synergies. J.P. Morgan analyst Richard Shane described the move as part of a strategy to “build scale in servicing, harvesting recurring cash flows.” (Reuters)
On Jan. 30, UWM submitted a Form S-4 registration statement connected to the business combination, a move that usually kicks off the shareholder vote and the necessary approvals. (United Wholesale Mortgage)
Mortgage stocks showed mixed action. Rocket Companies Inc jumped 5.9%, and loanDepot Inc added 4.4%. PennyMac Financial Services Inc, however, dropped 6.4%. Two Harbors surged 7.5%.
The broader market edged higher, with the S&P 500 gaining roughly 0.7%. Meanwhile, the U.S. 10-year Treasury yield ticked up around 0.03 percentage points (three basis points), reaching 4.275%. That uptick has potential knock-on effects for mortgage rates and servicing valuations. (Reuters)
Mortgage servicing rights, or MSRs, give holders the ability to collect monthly mortgage payments and related fees. While they generate steady cash flow, their value can fluctuate as interest rates shift and refinancing speeds up or slows down.
But the deal isn’t set yet. It requires approval from shareholders and regulators. Plus, the consideration depends on UWM’s stock price — a plunge in UWMC shares could instantly shift the economics and stretch the gap between the offer’s implied value and Two Harbors’ trading level.
UWM Holdings, the parent company of United Wholesale Mortgage, originates and services residential mortgages through the U.S. wholesale channel and sells these loans into the secondary market. (Reuters)
The next catalyst arrives fast: Two Harbors will host a conference call Tuesday, February 3 at 9:00 a.m. ET. Investors are expected to seek clarity on quarterly results and updates to the merger timeline. (Twoinv)
