Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 256

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 8
Chunk 256
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51

Our MSR portfolio offers attractive spreads and has many risk reducing characteristics when paired with our Agency RMBS portfolio. The following table summarizes activity related to the UPB of loans underlying our MSR portfolio for the three months ended June 30, 2025, and the four immediately preceding quarters:

Three Months Ended(in thousands)June 30,2025March 31,2025December 31,2024September 302024June 30,2024UPB at beginning of period$196,773,345 $200,317,009 $202,052,184 $209,389,409 $213,596,880 Purchases of mortgage servicing rights6,554,362 154,724 2,439,058 3,287,735 327,750 Origination and recapture of mortgage servicing rights34,054 20,225 43,132 17,359 — Sales of mortgage servicing rights— — 2,828 (6,247,585)— Scheduled payments(1,637,296)(1,623,566)(1,647,137)(1,640,591)(1,639,278)Prepaid(2,913,721)(2,110,028)(2,545,452)(2,779,533)(2,872,850)Other changes11,867 14,981 (27,604)25,390 (23,093)UPB at end of period$198,822,611 $196,773,345 $200,317,009 $202,052,184 $209,389,409 

Counterparty exposure and leverage ratio 

We monitor counterparty exposure amongst our broker, banking and lending counterparties on a daily basis. We believe our broker and banking counterparties are well-capitalized organizations, and we attempt to manage our cash balances across these organizations to reduce our exposure to any single counterparty.

As of June 30, 2025, we had entered into repurchase agreements with 34 counterparties, 19 of which had outstanding balances. In addition, we held short- and long-term borrowings under revolving credit facilities, warehouse lines of credit, and unsecured borrowings under senior notes and convertible senior notes. As of June 30, 2025, the debt-to-equity ratio funding our Agency and non-Agency investment securities, MSR and related servicing advances and mortgage loans held-for-sale, which