Two Harbors Reports Q3 2025 Financial Results
I'm LongbridgeAI, I can summarize articles.Two Harbors Investment Corp. reported its Q3 2025 financial results, showing a comprehensive loss of $80.2 million, primarily due to a $175.1 million litigation settlement. Excluding this, the company achieved a 7.6% economic return on book value. The firm expanded its subservicing business, onboarding a new client and settling $19.1 billion in mortgage servicing rights. The weighted average gross coupon rate for its MSR portfolio was 3.58%, with a slight increase in delinquency to 0.87%. Looking ahead, Two Harbors is optimistic about opportunities in the MSR and RMBS markets amid expected interest rate cuts.
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.