Company: TWO-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001465740-25-000083
Chunk: 182

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 182
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7 million and $79.7 million, respectively, were pledged as collateral for the Company’s future payment obligations under its servicing advance revolving credit facility. The Company does not anticipate any defaults by its revolving credit facility counterparties, although there can be no assurance that any such default or defaults will not occur.

Note 15. Warehouse Facilities

To finance origination activities, the Company has entered into a warehouse facility collateralized by the value of the mortgage loans pledged for a period of up to 90 days or until they are sold to the GSEs or other third-party investors in the secondary market, typically within 60 days of origination. As of December 31, 2024, the Company had outstanding short-term borrowings under its warehouse facility of $2.0 million with a weighted average borrowing rate of 6.64% and a weighted average remaining maturity of 87 days. The Company did not have any outstanding borrowings under its warehouse facility as of December 31, 2023. 

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Table of ContentsTWO HARBORS INVESTMENT CORP.Notes to the Consolidated Financial Statements

At December 31, 2024 and December 31, 2023, borrowings under the Company’s warehouse facility had the following remaining maturities:(in thousands)December 31,2024December 31,2023Within 30 days$— $— 30 to 59 days— — 60 to 89 days2,032 — 90 to 119 days— — 120 to 364 days— — One year and over— — Total$2,032 $— Although the transactions under warehouse facilities represent committed borrowings from the time of funding until maturity, the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets below a designated threshold would require the Company to provide additional collateral or pay down the facility. As of December 31, 2024, mortgage loans held-for-sale with a carrying value of $2.1 million were pledged as collateral for the Company’s future payment obligations under its warehouse facility. Additionally, as of December 31, 2024, $0.4 million of cash was held in restricted accounts as collateral for the future payment obligations of outstanding warehouse facility balances. The Company does not anticipate any defaults by its warehouse facility counterparties, although there can be no assurance that any such default or defaults will not occur.

Note 16