Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 82

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 1
Chunk 82
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 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 capacity on servicing advance financing facilities. As of September 30, 2025, we held approximately $0.3 million of unpledged mortgage loans and had $26.5 million unused committed borrowing capacity on our warehouse line of credit and $46.5 million unused uncommitted borrowing capacity on our loan repurchase agreement. Generally, unused borrowing capacity may be the result of our election not to utilize certain financing, as well as delays in the timing in which funding is provided, insufficient collateral or the inability to meet lenders’ eligibility requirements for specific types of asset classes. 

We also monitor exposure to our MSR counterparties. We may be required to make representations and warranties to investors in the loans underlying the MSR we own; however, some of our MSR were purchased on a bifurcated basis, meaning the representation and warranty obligations remain with the seller. If the representations and warranties we make prove to be inaccurate, we may be obligated to repurchase certain mortgage loans, which may impact the profitability of our portfolio. Although we obtain similar representations and warranties from the counterparty from which we acquired the relevant asset, if those representations and warranties do not directly mirror those we make to the investor, or if we are unable to enforce the representations and warranties against the counterparty for a variety of reasons, including the financial condition or insolvency of the counterparty, we may not be able to seek indemnification from our counterparties for any losses attributable to the breach.

53

Summary of Results of Operations and Financial Condition

Our book value per common share for U.S. GAAP purposes was $11