Company: TWO-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001465740-25-000083
Chunk: 151

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 151
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 principal reduction or foreclosure and ultimate liquidation of the real estate-owned property, thus making their collection reasonably assured. These servicing advances totaled $141.6 million and $143.2 million and were included in other assets on the consolidated balance sheets as of December 31, 2024 and December 31, 2023, respectively. At December 31, 2024 and December 31, 2023, mortgage loans in 60+ day delinquent status (whether or not subject to forbearance) accounted for approximately 0.9% and 0.7%, respectively, of the aggregate principal balance of loans for which the Company had servicing advance funding obligations.The Company has one revolving credit facility to finance its servicing advance obligations. At December 31, 2024 and December 31, 2023, the Company had pledged servicing advances with a carrying value of $118.7 million and $79.7 million, respectively, as collateral for this revolving credit facility. See Note 14 - Revolving Credit Facilities.

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

Note 7. Mortgage Loans Held-for-Sale, at Fair Value

The Company originates residential mortgage loans for the purpose of selling to the GSEs or other third-party investors in the secondary market on a servicing-retained basis, typically within 60 days of origination. The Company also holds a small amount of mortgage loans purchased from the collateral underlying its MSR. Mortgage loans held-for-sale are recorded at fair value as a result of a fair value option election. The following table presents the carrying value of Company’s mortgage loans held-for-sale as of December 31, 2024 and December 31, 2023:(in thousands)December 31,2024December 31,2023Unpaid principal balance$2,297 $318 Mark-to-market adjustments37 14 Total mortgage loans held-for-sale$2,334 $332 The following table presents a reconciliation of the Company’s mortgage loans held-for-sale for the years ended December 31, 2024, 2023 and 2022:Year EndedDecember 31,(in thousands)202420232022Balance at beginning of period$332 $283 $40 Originations and purchases of mortgage loans64,416 80 264 Sales and principal collections(62,437)(31)(30)Unrealized gains (loss