Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 225

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 8
Chunk 225
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 summarizes assets at carrying value that are pledged or restricted as collateral for the future payment obligations of the Company’s repurchase agreements:(in thousands)June 30,2025December 31,2024Available-for-sale securities, at fair value$8,207,842 $7,097,561 Mortgage servicing rights, at fair value (1)1,328,463 1,355,639 Restricted cash44,216 218,363 Due from counterparties38,221 25,231 Derivative assets, at fair value65,676 5,031 Total$9,684,418 $8,701,825 ____________________(1)As of June 30, 2025 and December 31, 2024, MSR repurchase agreements totaling $790.0 million and $755.0 million, respectively, were secured by VFNs issued in connection with the Company’s securitization of MSR. The VFNs are collateralized by portions of the Company’s MSR portfolio.Although the transactions under repurchase agreements represent committed borrowings until maturity, the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets would require the Company to provide additional collateral or fund margin calls.As of both June 30, 2025 and December 31, 2024, the net carrying value of assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest, with any individual counterparty or group of related counterparties did not exceed 10% of total stockholders’ equity. The Company does not anticipate any defaults by its repurchase agreement counterparties. There can be no assurance, however, that any such default or defaults will not occur.Revolving Credit FacilitiesTo finance MSR assets and related servicing advance obligations, the Company has entered into revolving credit facilities collateralized by the value of the MSR and/or servicing advances pledged. As of June 30, 2025 and December 31, 2024, the Company had outstanding short- and long-term borrowings under revolving credit facilities of $1.0 billion and $1.0 billion with a weighted average borrowing rate of 7.36% and 7.56% and weighted average remaining maturities of 1.7 and 1.6 years, respectively.Although the transactions under revolving credit facilities represent