** Shares of real estate investment trust Two Harbors Investment TWO.N surge >7% on Mon after determining rival acquisition bid from CrossCountry Mortgage (CCM) is superior to previous merger agreement with UWM Holdings UWMC.N, and said received a bid from an additional third party

** TWO shares last up 6.4% at $11.40, an over one-month high, after rising as high as $11.50

** CCM proposal provides for acquisition of all outstanding TWO shares at $10.70/sh in cash and payment of $25.4 mln termination fee that TWO would be required to pay UWMC to end the deal

** UWMC has the right to propose revisions to its merger agreement with TWO by the end of Weds (Mar 25). TWO said UWMC has proposed revised terms and the two firms are in discussions

** In addition, TWO said received an unsolicited proposal from an additional third party that includes a $10.75/sh cash offer, plus payment of termination fee

** In Dec, TWO and lender UWMC agreed to an all-stock merger worth $1.3 bln at the time that would nearly double the latter's mortgage servicing rights portfolio

** The U.S. mortgage industry is consolidating as lenders seek greater scale after high interest rates stymied refinancing activity and pressured earnings

** Minnesota-based TWO has ~105 mln shares outstanding for ~$1.2 bln current market cap

** Including move on Mon, TWO shares have shed ~17% over the past 12 months

** UWMC shares up 4.6% at $3.37 on the session, but down ~35% over the past year