Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 56

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 56
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 Mac to own and manage MSR, which represent the right to control the servicing of residential mortgage loans. TH MSR Holdings acquires MSR from third-party originators through flow and bulk purchases, as well as through the recapture of MSR on loans in its MSR portfolio that refinance. Beginning in 2024, TH MSR Holdings also acquires MSR on loans originated by its subsidiary, RoundPoint, through purchases and recapture of MSR. TH MSR Holdings does not directly service mortgage loans; instead, it engages its wholly owned subsidiary, RoundPoint, to handle substantially all servicing functions for the mortgage loans underlying the Company’s MSR. RoundPoint also services mortgage loans underlying MSR owned by third parties. RoundPoint has approvals from Fannie Mae and Freddie Mac to service residential mortgage loans.

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

The following table summarizes activity related to the Company’s MSR portfolio for the three and six months ended June 30, 2025 and 2024:Three Months EndedSix Months EndedJune 30,June 30,(in thousands)2025202420252024Balance at beginning of period$2,959,773 $3,084,879 $2,994,271 $3,052,016 Purchases of mortgage servicing rights91,356 3,353 92,849 43,425 Additions from sales of mortgage loans408 — 638 — Sales of mortgage servicing rights— — — (18,221)Changes in fair value due to:Changes in valuation inputs or assumptions used in the valuation model27,357 40,173 43,373 99,953 Other changes in fair value (1)(63,251)(62,990)(115,488)(111,758)Balance at end of period (2)$3,015,643 $3,065,415 $3,015,643 $3,065,415 ____________________(1)Primarily represents changes due to the realization of cash flows.(2)Based on the prior month-end’s principal balance of the loans underlying the Company’s MSR, increased for current month purchases.At June 30, 2025 and December 31, 2024, the Company pledged MSR with a carrying value of $2.9 billion and $3.0 billion, respectively, as collateral for repurchase agreements and revolving credit facilities. See Note