Two Harbors Investment Corp. (TWO) has disclosed a new risk, in the Corporate Activity and Growth category.
Two Harbors Investment Corp., through its acquisition of RoundPoint, has become directly involved in mortgage loan servicing, a move that exposes the company to a host of new risks. This direct engagement heightens their susceptibility to legal and regulatory issues, operational challenges from non-compliance with government-sponsored entities (GSEs), and financial strains from loan delinquencies and defaults. Additionally, the company faces the threat of servicer rating downgrades and potential data security vulnerabilities. These risks collectively pose a significant threat to Two Harbors’ financial stability and operational efficacy, underscoring the precarious nature of the new venture despite the anticipated benefits.
The average TWO stock price target is $14.42, implying 12.92% upside potential.
To learn more about Two Harbors Investment Corp.’s risk factors, click here.