Two Harbors Investment Corp. Announces Flow Sale Agreement for Mortgage Servicing Rights
New York, November 4, 2013 – Two Harbors Investment Corp. (NYSE: TWO; NYSE MKT: TWO.WS) today announced that its wholly owned subsidiary, Matrix Financial Services Corporation (“Matrix”), has entered into a flow sale agreement with PHH Mortgage Corporation (“PHH Mortgage”), a wholly owned subsidiary of PHH Corporation (NYSE: PHH), for the purchase and sale of mortgage servicing rights (“MSRs”). Under the flow sale agreement, PHH Mortgage may sell to Matrix the MSRs on 50% or more of PHH Mortgage’s newly-originated residential mortgage loans that are eligible for sale, subject to the parties’ mutual agreement on quarterly pricing for the MSRs. The flow sale agreement has an initial term of two years, subject to earlier termination in accordance with its terms, and can be extended upon mutual agreement.
The parties have also entered into a subservicing agreement pursuant to which PHH Mortgage will act as the subservicer of the mortgage loans underlying the MSRs sold under the flow sale agreement. During the term of the subservicing agreement, PHH Mortgage will be entitled to receive subservicing income and other ancillary servicing fees related to the MSRs. Unless earlier terminated in accordance with its terms, the subservicing agreement will remain in effect so long as mortgage loans underlying the MSRs remain outstanding.
“We are pleased to announce this MSR flow sale agreement with PHH Mortgage, an industry-leading mortgage lender,” stated Thomas Siering, Two Harbors’ President and Chief Executive Officer. “This agreement represents significant progress related to our MSR investment initiative. We look forward to discussing the flow sale agreement on our third quarter earnings conference call, which is scheduled for 9:00 am EST on November 6, 2013.”
Two Harbors Investment Corp.
Two Harbors Investment Corp., a Maryland corporation, is a real estate investment trust that invests in residential mortgage-backed securities, residential mortgage loans, mortgage servicing rights and other financial assets. Two Harbors is headquartered in Minnetonka, Minnesota, 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.
Stockholders and warrant holders of Two Harbors, and other interested persons, may find additional information regarding the company at the Securities and Exchange Commission’s Internet site at www.sec.gov or by directing requests to: Two Harbors Investment Corp., 601 Carlson Parkway, Suite 1400, Minnetonka, MN 55305, telephone 612-629-2500.
Investors: July Hugen, Investor Relations, Two Harbors Investment Corp., 612-629-2514, email@example.com.