Two Harbors Investment Corp. is pushing back on a lawsuit filed this week by UWM Holdings Corp., calling the complaint “frivolous,” “meritless” and “illogical” while defending its decision to abandon a stock-for-stock merger with the wholesale lender in favor of an all-cash deal with rival CrossCountry Mortgage (CCM).

TWO’s response focuses heavily on UWM’s financial condition, noting that the lender’s stock is down nearly 70% year to date following the disclosure of a $600 million derivatives loss — a loss that Two Harbors said had been rumored since May 19.

UWM said the hedge position, designed to mitigate the risks details ⇒

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