Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 21

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 1
Chunk 21
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 and Freddie Mac. Servicing advances are priority cash flows in the event of a loan principal reduction or foreclosure and ultimate liquidation of the real estate-owned property, thus making their collection reasonably assured. These servicing advances, net of an allowance for uncollectible advances, totaled $81.0 million and $141.6 million and were included in other assets on the consolidated balance sheets as of September 30, 2025 and December 31, 2024, respectively. At both September 30, 2025 and December 31, 2024, mortgage loans in 60+ day delinquent status (whether or not subject to forbearance) accounted for approximately 0.9% of the aggregate principal balance of loans for which the Company had servicing advance funding obligations (loans underlying the Company’s MSR).The Company has one revolving credit facility to finance its servicing advance obligations. At September 30, 2025 and December 31, 2024, the Company had pledged servicing advances with a gross carrying value of $82.8 million and $118.7 million, respectively, as collateral for this revolving credit facility. See Note 13 - Financing.

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

Serviced Mortgage AssetsThe Company’s total serviced mortgage assets consist of mortgage loans underlying its MSR assets, off-balance sheet mortgage loans owned by third parties and subserviced by the Company, off-balance sheet mortgage loans owned by third parties for which the Company acts as servicing administrator (subserviced by appropriately licensed third-party subservicers), originated or purchased mortgage loans held-for-sale at period-end, and other assets. The following table presents the number of loans and unpaid principal balance of the mortgage assets for which the Company manages the servicing as of September 30, 2025 and December 31, 2024:September 30, 2025December 31, 2024(dollars in thousands)Number of LoansUnpaid Principal BalanceNumber of LoansUnpaid Principal BalanceMortgage servicing rights720,038 $175,820,641 803,091 $200,317,008 Subservicing135,706 30,203,608 57,961 11,219,408 Servicing administrator519 278,371 543 299,955 Mortgage loans held-for-sale41 12,300 13 2