Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 89

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 1
Chunk 89
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 Total servicing costs3,762 3,900 9,345 15,494 Net servicing income$162,686 $167,832 $472,316 $498,586 

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

As previously discussed, RoundPoint handles substantially all servicing functions for the mortgage loans underlying our MSR, as well as our originated or purchased mortgage loans held-for-sale. 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 nine months ended September 30, 2025, as compared to the same periods in 2024, was the result of lower third-party deboarding and subservicing fees incurred.

(Loss) Gain On Investment Securities 

The following table presents the components of (loss) gain on investment securities for the three and nine months ended September 30, 2025 and 2024:

Three Months EndedNine Months EndedSeptember 30,September 30,(in thousands)2025202420252024Proceeds from sales$4,246,997 $91,115 $9,348,345 $896,520 Amortized cost of securities sold(4,262,884)(91,503)(9,430,868)(929,064)Total realized losses on sales(15,887)(388)(82,523)(32,544)Reversal of provision for credit losses91 276 113 25 Other(391)1,495 664 490 (Loss) gain on investment securities$(16,187)$1,383 $(81