Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 264

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 8
Chunk 264
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,015 315,213 342,348 Total servicing costs2,386 4,475 5,583 11,594 Net servicing income$155,968 $171,540 $309,630 $330,754 

The decrease in total servicing income for the three and six months ended June 30, 2025, as compared to the same periods in 2024, was primarily due to lower servicing fee income on a smaller MSR portfolio as a result of run-off and sales as well as lower float income due to the lower interest rate environment, partially offset by higher ancillary and other fee income from subservicing.

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As previously discussed, RoundPoint handles substantially all servicing functions for the mortgage loans underlying our MSR. For the remaining portion of our serviced mortgage assets, we contract with appropriately licensed third-party subservicers to handle the servicing functions in the name of the subservicer. All third-party subservicing costs and other servicing expenses directly related to our MSR portfolio are included within the servicing costs line item on our consolidated statements of comprehensive (loss) income. All servicing-related general and administrative expenses incurred by RoundPoint are included within the compensation and benefits and other operating expenses line items on our consolidated statements of comprehensive (loss) income. The decrease in servicing costs during the three and six months ended June 30, 2025, as compared to the same periods in 2024, was the result of lower third-party deboarding and subservicing fees incurred.

Loss On Investment Securities 

The following table presents the components of loss on investment securities for the three and six months ended June 30, 2025 and 2024:

Three Months EndedSix Months EndedJune 30,June 30,(in thousands)2025202420252024Proceeds from sales$3,771,764 $472,323 $5,101,348 $805,405 Amortized cost of securities sold(3,804,924)(494,316)(5,167,984)(837,561)Total realized losses on sales(33,160)(21,993)(66,636)(32,156)Reversal of (provision for) credit losses116 (171)22 (251)Other214 (273)1,055 (1,005)Loss on investment securities$(32,830)$(22,437)$(65,559)$(33,412)

In the ordinary course of our business