Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 81

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 1
Chunk 81
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52

Our MSR portfolio offers attractive spreads and has many risk reducing characteristics when paired with our Agency RMBS portfolio. The following table summarizes activity related to the UPB of loans underlying our MSR portfolio for the three months ended September 30, 2025, and the four immediately preceding quarters:

Three Months Ended(in thousands)September 30,2025June 30,2025March 31,2025December 312024September 30,2024UPB at beginning of period$198,822,611 $196,773,345 $200,317,009 $202,052,184 $209,389,409 Purchases of mortgage servicing rights663,744 6,554,362 154,724 2,439,058 3,287,735 Origination and recapture of mortgage servicing rights34,497 34,054 20,225 43,132 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