NEW YORK--(BUSINESS WIRE)--Two Harbors Investment Corp.(NYSE: TWO), a leading residential mortgage real estate investment trust, today provided the following updates with respect to its business, through the close of business on April 3, 2020.

• As a result of our portfolio management decisions in recent weeks, our liquidity position remains quite strong. We continue in our efforts to be prudent risk managers and are confident that we will continue to be in a position to meet margin calls in the ordinary course of our business.
• Previously we reported that we completed the sale of substantially all of our non-Agency portfolio; subsequent to that, we have sold additional non-Agency securities reducing that exposure to a de minimis level. With the disposition of this position, we have eliminated the risk of outsized margin calls and ongoing funding concerns associated with the significant widening on these assets.
• The repo markets for Agency RMBS continue to function well and we have experienced no issues in accessing this source of funding.
• The actions taken by the Federal Reserve to purchase Agency RMBS have been successful in stabilizing the market and our portfolio has benefitted from the resulting spread tightening.
• We are encouraged by the continued focus by the Treasury, Federal Reserve, FHFA and other governmental agencies on servicing advance issues that will be attendant to the mortgage loan forbearance programs announced in connection with the CARES Act. As the servicer of record for the MSR assets in our portfolio, we are responsible for continuing to advance principal, interest, taxes and insurance on mortgage loans that are in forbearance, delinquency or default. Although the potential aggregate size of the servicing advance obligations is not known, at this time we believe that we will be well positioned from a liquidity standpoint to continue to make servicing advances in the future. This is a situation that we are monitoring closely.
• We estimate that our book value has not changed materially since our last company update.

“As a country, we are facing unprecedented societal and economic conditions as a result of the COVID-19 pandemic, and there remains much uncertainty as to what may lie ahead,” stated Thomas Siering, Two Harbors’ President and Chief Executive Officer. “In spite of this, we remain optimistic for the future of our company and you have our commitment that we will remain acutely focused on managing our portfolio through thoughtful asset selection, as well as active hedging, to benefit our stockholders over the long-term.”

Two Harbors Investment Corp.

Two Harbors Investment Corp., a Maryland corporation, is a real estate investment trust that invests in residential mortgage-backed securities, mortgage servicing rights and other financial assets. Two Harbors is headquartered in New York, New York, and is externally managed and advised by PRCM Advisers LLC, a wholly owned subsidiary of Pine River Capital Management L.P. Additional information is available at www.twoharborsinvestment.com.