Two Harbors Investments Reports Q4 2025 Results, Announces Merger with UWM

Company highlights strategic rationale and financial performance amid mortgage market shifts.

Feb. 4, 2026 at 1:31am

Two Harbors Investments (NYSE: TWO) reported fourth-quarter 2025 results, which management said reflected solid portfolio performance. The company also provided a strategic update centered on its recently announced merger with United Wholesale Mortgage (UWM). Executives described the transaction as a culmination of Two Harbors' long-running effort to build a scaled mortgage servicing rights (MSR) platform supported by origination and servicing capabilities.

Why it matters

The merger with UWM is intended to address a shift in the mortgage finance landscape in 2025, where management believes scale has become 'more important than ever.' The combined company would double the size of Two Harbors' MSR portfolio to a pro forma $400 billion, pairing the company with the 'number one mortgage originator in the country'.

The details

For the fourth quarter, Two Harbors generated a total economic return of +3.9%. Book value was $11.13 per share at Dec. 31, 2025, up from $11.04 at Sept. 30. The company also repaid $261.9 million of convertible senior notes in full on their Jan. 15, 2026 maturity date. Operationally, Two Harbors settled on the sale of an additional $10 billion unpaid principal balance (UPB) of MSR, increasing third-party subservicing to $40 billion at year end from $30 billion the prior quarter.

  • Two Harbors reported fourth-quarter 2025 results on February 4, 2026.
  • The company repaid $261.9 million of convertible senior notes in full on their Jan. 15, 2026 maturity date.
  • Two Harbors' DTC platform had a record quarter, funding $94 million in first and second liens, up 90% from the third quarter, with an additional $38 million in the pipeline at quarter end.

The players

Two Harbors Investments

A mortgage real estate investment trust (mREIT) that primarily invests in residential mortgage-backed securities (RMBS) and mortgage servicing rights (MSR).

United Wholesale Mortgage (UWM)

The 'number one mortgage originator in the country' that Two Harbors is merging with to create a scaled MSR platform.

Bill Greenberg

President and CEO of Two Harbors Investments.

William Dellal

Chief Financial Officer of Two Harbors Investments.

Nick Letica

Chief Investment Officer of Two Harbors Investments.

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