Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 88

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 1
Chunk 88
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 advance obligations for the three and nine months ended September 30, 2025, as compared to the same periods in 2024, was primarily due to the lower interest rate environment. We have one revolving credit facility in place to finance our servicing advance obligations, which are included in other assets on our consolidated balance sheets.

Late in the second quarter of 2024, RoundPoint began operating its in-house, direct-to-consumer originations platform. Prior to the launch of originations, our mortgage loans held-for-sale consisted of a small number of loans purchased from the collateral underlying our MSR, which were not pledged for any form of financing.

In May 2025, we issued $115.0 million of unsecured senior notes due in 2030, which pay interest quarterly at rate of 9.375% per annum. The cost of funds associated with our senior notes also includes amortization of deferred debt issuance costs.

The cost of funds associated with our convertible senior notes for the three and nine months ended September 30, 2025, as compared to the same periods in 2024, was consistent.

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The following table presents the components of the yield earned on our AFS securities portfolio as a percentage of our average amortized cost of securities for the three and nine months ended September 30, 2025 and 2024:

Three Months EndedNine Months EndedSeptember 30,September 30,2025202420252024Gross yield/stated coupon5.2 %5.0 %5.2 %4.9 %Net (premium amortization) discount accretion(0.2)%(0.2)%(0.3)%(0.1)%Net yield5.0 %4.8 %4.9 %4.8 %

Net Servicing Income

The following table presents the components of net servicing income for the three and nine months ended September 30, 2025 and 2024:

Three Months EndedNine Months EndedSeptember 30,September 30,(in thousands)2025202420252024Servicing fee income$127,349 $126,597 $377,929 $400,278 Ancillary and other fee income5,277 3,928 15,572 12,220 Float income33,822 41,207 88,160 101,582 Total servicing income166,448 171,732 481,661 514,080