Two Harbors Investment Corp. ( (TWO) ) has released its Q3 earnings. Here is a breakdown of the information Two Harbors Investment Corp. presented to its investors.
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Two Harbors Investment Corp., a real estate investment trust (REIT) focused on mortgage servicing rights (MSR) and residential mortgage-backed securities (RMBS), has announced its financial results for the third quarter of 2025.
Despite facing a comprehensive loss of $80.2 million, the company reported a strong performance excluding litigation settlement expenses, achieving a 7.6% quarterly economic return on book value. The settlement with the former external manager resulted in a significant expense of $175.1 million, impacting the overall financial outcome.
The company successfully expanded its subservicing business, onboarding a new client and settling $19.1 billion in MSR during the quarter. Additionally, Two Harbors reported a weighted average gross coupon rate of 3.58% for its MSR portfolio and a slight increase in the delinquency rate to 0.87%.
Looking forward, Two Harbors is optimistic about capitalizing on opportunities in the MSR and RMBS markets, with expectations of attractive risk-adjusted returns amid anticipated interest rate cuts by the Federal Reserve. The company aims to drive growth in its servicing and originations businesses, leveraging a clean slate post-settlement.