Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 59

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 59
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 the consolidated balance sheets as of June 30, 2025 and December 31, 2024, respectively. At June 30, 2025 and December 31, 2024, mortgage loans in 60+ day delinquent status (whether or not subject to forbearance) accounted for approximately 0.8% and 0.9%, 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 June 30, 2025 and December 31, 2024, the Company had pledged servicing advances with a gross carrying value of $92.0 million and $118.7 million, respectively, as collateral for this revolving credit facility. See Note 13 - Financing.

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 June 30, 2025 and December 31, 2024:(in thousands)June 30,2025December 31,2024Unpaid principal balance$9,660 $2,297 Mark-to-market adjustments228 37 Total mortgage loans held-for-sale$9,888 $2,334 

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

The following table presents a reconciliation of the Company’s mortgage loans held-for-sale 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$8,406 $279 $2,334 $332 Originations and purchases of mortgage loans48,669 50 77,539 51 Sales and principal collections(47,260)(51)(70,175)(101)Unrealized gains (losses) on mortgage loans73 — 190 (4