Following UWM's announcement, CrossCountry Mortgage modified its bid for Two Harbors.

Two Harbors said the structure of UWM’s offer is “fundamentally illusory and predatory,” noting that UWM’s stock price has been declining, among other issues.

“The outlook for the months ahead remains fragile as volatile mortgage rates and economic uncertainty continue to be headwinds,” said Lisa Sturtevant, chief economist at Bright MLS, a multiple listing service covering the Mid-Atlantic region.

United Wholesale Mortgage has increased its bid for Two Harbors Investment after CrossCountry Mortgage matched its previous bid for the real estate investment trust.

The transaction includes servicing on 800,000 loans representing about $197 billion in unpaid principal balance.

“The industry forecasts are expecting a step up in Q2 but I would say that we’re just not seeing that,” said Varun Krishna, CEO of Rocket Companies.

Mat Ishbia, president and CEO of United Wholesale Mortgage, said management at Two Harbors is “maybe playing some games” in opting to be acquired by CrossCountry Mortgage rather than by UWM.

While UWM has repeatedly raised its bid price and made other concessions, Two Harbors has opted to move forward with an acquisition by CrossCountry Mortgage.

Two Harbors board cited concerns about UWM's balance sheet and committed financing in a statement released this week.

The new deal increases the cash election from UWM’s previous offer from $11.30 to $12.00 per share, a $0.70 premium per stock compared to the deal the Two Harbors board accepted from CrossCountry Mortgage last month.