Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 254

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 8
Chunk 254
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,132 17,359 Sales of mortgage servicing rights(19,111,664)— — 2,828 (6,247,585)Scheduled payments(1,647,185)(1,637,296)(1,623,566)(1,647,137)(1,640,591)Prepaid(2,964,335)(2,913,721)(2,110,028)(2,545,452)(2,779,533)Other changes22,973 11,867 14,981 (27,604)25,390 UPB at end of period$175,820,641 $198,822,611 $196,773,345 $200,317,009 $202,052,184 

Counterparty exposure and leverage ratio 

We monitor counterparty exposure amongst our broker, banking and lending counterparties on a daily basis. We believe our broker and banking counterparties are well-capitalized organizations, and we attempt to manage our cash balances across these organizations to reduce our exposure to any single counterparty.

As of September 30, 2025, we had entered into repurchase agreements with 33 counterparties, 18 of which had outstanding balances. In addition, we held short- and long-term borrowings under revolving credit facilities, warehouse lines of credit, and unsecured borrowings under senior notes and convertible senior notes. As of September 30, 2025, the debt-to-equity ratio funding our Agency and non-Agency investment securities, MSR and related servicing advances and mortgage loans held-for-sale, which includes unsecured borrowings under senior notes and convertible senior notes, was 4.8:1.0.

As of September 30, 2025, we held $770.5 million in cash and cash equivalents, approximately $10.6 million of unpledged Agency RMBS and $3.3 million of unpledged non-Agency securities. As a result, we had an overall estimated unused borrowing capacity on our unpledged securities of approximately $11.5 million. As of September 30, 2025, we held approximately $7.1 million of unpledged MSR and $1.7 million of unpledged servicing advances. Overall, on September 30, 2025, we had $127.1 million unused committed and $812.0 million unused uncommitted borrowing capacity on MSR financing facilities, and $77.5 million in unused committed borrowing