FAQ

The company is headquartered in St. Louis Park, Minnesota. The address is 1601 Utica Avenue South, St. Louis Park, MN 55416. The main telephone number is 612.453.4100.

Two Harbors was founded in 2009 and began trading as a public company under the symbol “TWO” on October 28, 2009.

Two Harbors is incorporated in Maryland.

A REIT, or a real estate investment trust, is a company that owns, and in many cases operates, income-producing real estate. Some REITs also engage in financing real estate. REITs must qualify and elect to be taxed as a REIT under the Internal Revenue Code of 1986. The principle advantage to qualifying as a REIT is the tax benefit: REITs do not pay taxes at a corporate level, which allows them to pass through profits to investors, in the form of dividends or distributions, and avoid what is known as "double taxation" (e.g., taxation at both the corporate level and individual level).

There are several types of REITs, including mortgage REITs such as Two Harbors, which invest in real estate debt. To learn more about REITs and other industry topics, please visit the Webinars section of our website, by clicking here.

Two Harbors invests in a diverse portfolio of Agency RMBS (which includes inverse interest-only Agency securities classified as Agency Derivatives for purposes of U.S. GAAP), meaning RMBS whose principal and interest payments are guaranteed by the Government National Mortgage Association (or Ginnie Mae), the Federal National Mortgage Association (or Fannie Mae), or the Federal Home Loan Mortgage Corporation (or Freddie Mac);mortgage servicing rights (MSR); and other financial assets comprising approximately 5% to 10% of the portfolio.

Ernst & Young LLP.

You can sign up for e-mail notifications for press releases and SEC filings on the Investor Alerts page. Contact information for Investor Relations is provided on the Contact page.

If you hold your shares directly in registered form, contact Two Harbors' transfer agent, Equiniti Trust Company, by phone at 800.468.9716, for assistance. If your shares are held through a bank or brokerage firm, you should contact your representative at that entity with any questions.

A list of the analysts currently following Two Harbors can be found on the Analyst Coverage page.

Yes, Two Harbors holds quarterly conference calls following the reporting of its financial results. Stockholders may listen to the call and access materials relating to the reporting of its financial results on the Financial Results page. Stockholders and other interested individuals can also sign up for Investor Alerts about upcoming webcasts, conference calls and other company events.

Two Harbors distributes its Annual Report, Proxy Statement, and Proxy Card to stockholders in advance of its Annual Meeting of Stockholders. Individuals who wish to receive quarterly earnings releases, SEC filings, and other news directly from the company throughout the year may sign up on the Investor Alerts page.

Two Harbors' press releases, events and presentations and SEC filings can be accessed through the Investors page.

You can elect to receive email notifications when we will press releases and make filings with the SEC filings by signing up for our Investor Alerts.

Two Harbors is a real estate investment trust (REIT).  In order to satisfy its REIT requirements, it intends to pay regular quarterly dividends of all or substantially all of its taxable income to its stockholders. The timing and amount of any dividends paid to stockholders is at the discretion of Two Harbors' Board of Directors and depends upon a number of factors, including its actual and projected results of operations, financial condition, maintenance of its REIT qualification, and such other factors as the Board of Directors deems relevant. To view Two Harbors' historical dividend information, please visit the Dividend History page.

Two Harbors issues a press release to disclose the record date and dividend payable date for each dividend it declares. You can sign up for email notifications for press releases on our Investor Alerts page.

Please refer to the Dividend History page for a list of the company's dividend history, including record date, payable date and dividends paid.

You may find tax information by year on Two Harbors' Dividend History page.

Two Harbors maintains a Dividend Reinvestment and Share Purchase Plan that is administered by Equiniti Trust Company. To learn more about the plan, please visit the DRIP and DSP Information page.

Yes, registered holders of Two Harbors common stock may contact the company's Dividend Reinvestment and Share Purchase Plan administrator, Equiniti Trust Company, at 800.468.9716 to request the direct deposit of dividends into an account. If your shares are held through a brokerage firm, you should contact the firm with your request.

Granite Point is traded on the New York Stock Exchange under the ticker symbol "GPMT."

The "Record Date" for the Stock Dividend was October 20, 2017. The outstanding shares of Two Harbors common stock entitled to receive the Stock Dividend was determined on the Record Date as of 5:00 p.m. Eastern Time. The Granite Point common stock was distributed on November 1, 2017 (the "Dividend Date").

Two Harbors common stockholders who were entitled to take part in the Stock Dividend received 0.094765 shares of Granite Point common stock for each share of Two Harbors common stock outstanding on October 20, 2017, subject to the liquidation of fractional shares for which stockholders would have received a payment of cash in lieu of such fractional shares.

Beginning October 19, 2017 and continuing up to and including the Dividend Date, there were two markets for trading in Two Harbors common stock: (1) a "regular way" trading market (NYSE: TWO); and (2) an "ex-distribution" market (NYSE: TWO WI) that will represent the value of Two Harbors common stock following the Stock Dividend and Reverse Stock Split. Shares of Two Harbors common stock that trade on the regular way market will trade with an entitlement to receive shares of Granite Point common stock in the Stock Dividend. Shares that trade on the ex-distribution market traded without an entitlement to receive shares of Granite Point common stock in the Stock Dividend. As a result, if you are a stockholder of record on the Record Date and sold your shares of Two Harbors common stock in the regular way market prior to or on the Dividend Date, you also sold your entitlement to receive shares of Granite Point common stock in the Stock Dividend; if you sold those shares in the ex-distribution market prior to or on the Dividend Date, you would have still received the shares of Granite Point common stock that you would have otherwise been entitled to receive in the Stock Dividend. Beginning on November 2, 2017 (the business day following the Dividend Date), the regular way market for Two Harbors began trading "ex" or without the entitlement to receive Granite Point common stock.

HOLDERS OF TWO HARBORS COMMON STOCK ARE ENCOURAGED TO CONSULT THEIR BROKER OR FINANCIAL ADVISOR REGARDING THE SPECIFIC IMPLICATIONS OF TRADING IN THE COMMON STOCK OF EITHER TWO HARBORS OR GRANITE POINT PRIOR TO OR ON THE DIVIDEND DATE.

The number of shares of Two Harbors common stock that you held did not change as a result of the Stock Dividend.

Following the Stock Dividend, we effected a one-for-two Reverse Stock Split, which impacted the number of shares of Two Harbors common stock that you held. See the question titled "What happened to my Two Harbors common stock as a result of the Reverse Stock Split?"

Two Harbors treated the Stock Dividend as a taxable distribution to its stockholders for U.S. federal income tax purposes, including for purposes of the U.S. federal tax withholding rules. Accordingly, the receipt of shares of Granite Point common stock by holders of Two Harbors common stock in the Stock Dividend was expected to be taxable for U.S. federal income tax purposes.

Each stockholder was treated as receiving a distribution in an amount equal to the fair market value on the date of the Distribution of (i) the Granite Point Stock received plus (ii) the fractional share of Granite Point Stock sold by the distribution agent on such stockholder’s behalf. A stockholder will have a basis in the fractional share of Granite Point Stock that was sold by the distribution agent on such stockholder’s behalf equal to the fair market value of such fractional share. Upon the sale of such fractional share by the distribution agent on behalf of a stockholder, such stockholder generally will recognize short-term capital gain or loss for U.S. federal income tax purposes equal to the difference, if any, between the amount realized and the stockholders basis in the fractional share. The number of shares from the Stock Dividend received by certain Two Harbors common stockholders, including non-U.S. stockholders, was reduced in connection with any applicable withholding taxes.

HOLDERS OF TWO HARBORS COMMON STOCK ARE URGED TO CONSULT THEIR OWN TAX ADVISORS WITH RESPECT TO THE U.S. FEDERAL, STATE AND LOCAL AND NON-U.S. TAX CONSEQUENCES OF THE STOCK DIVIDEND.

Registered holders of Two Harbors common stock who were entitled to receive shares of Granite Point common stock through the Stock Dividend received uncertificated shares registered in book-entry form at Equiniti Trust Company (formerly Wells Fargo Shareowner Services), as transfer agent for Granite Point, through the direct registration system. Direct registration system statements reflecting share ownership of such Granite Point shares were distributed by Wells Fargo Bank, N.A. shortly after the Dividend Date. Any amounts payable for cash in lieu of any fraction of a share of Granite Point common stock were also transmitted by Wells Fargo Bank, N.A. by check.

For additional information, registered stockholders in the United States and Canada should contact the distribution agent for the Stock Dividend, Wells Fargo Bank, N.A., at (800) 468-9716 or (651) 450-4064 from outside the United States and Canada.

Holders of Two Harbors common stock who held their shares through a broker, bank or other nominee would have had their brokerage account credited with shares of Granite Point common stock, less any such shares as may be withheld in respect of withholding taxes. For additional information, those stockholders should contact their broker, bank or other nominee directly.

A reverse stock split is a corporate action in which a company proportionately reduces the total number of its authorized and outstanding shares.

The Reverse Stock Split became effective at 5:01pm Eastern Time on November 1, 2017 (the "Effective Time"). At the Effective Time, every two issued and outstanding shares of Two Harbors common stock were converted into one share of Two Harbors common stock, subject to a reduction in the total number of shares as a result of cash payments made in lieu of the issuance of fractional shares. See the question titled "How were fractional shares of Two Harbors common stock treated in the Reverse Stock Split?"

The Reverse Stock Split took place following the Stock Dividend of Granite Point shares, and had no impact on the Stock Dividend.

The decision to effect the Reverse Stock Split was based on our expectation that, following the distribution of Granite Point common stock through the Stock Dividend, the market price and trading ranges for the shares of Two Harbors common stock will be significantly lower than the current market price and trading ranges. This is due to the fact that Two Harbors distributed all of the value of Granite Point to the holders of Two Harbors common stock through the Stock Dividend. The reason for effecting the Reverse Stock Split, which resulted in fewer shares of the Two Harbors common stock outstanding, was the potential to (1) increase the market price and (2) improve the marketability and liquidity of Two Harbors common stock.

Following the Reverse Stock Split, you owned one-half of the number of shares that you held prior to the Reverse Stock Split, although the shares you owned following the Reverse Stock Split continue to represent that same percentage of the total number of outstanding shares of Two Harbors common stock. Accordingly, the proportionate ownership of Two Harbors did not change as a result of the Reverse Stock Split.

For example:

• You own 1,000 shares of Company X, which has 1,000,000 shares of common stock outstanding (or a 0.10% percentage ownership in the company).
• After a 1-for-2 reverse stock split, you own 500 shares of Company X, which now has 500,000 shares of common stock outstanding (or a 0.10% percentage ownership in the company).
• Before and after the reverse stock split, you had the same 0.10% ownership percentage of Company X.

Note that fractional shares were not be issued. See the question titled "How were fractional shares of Two Harbors common stock treated in the Reverse Stock Split?"

The Reverse Stock Split had the effect of reducing the total number of Two Harbors’ issued and outstanding common stock by half, from approximately 349 million shares to approximately 175 million shares. As a result of the reduction in the number of shares of common stock, the price per share of Two Harbors common stock increased proportionately upon the completion of the Reverse Stock Split.

No fractional shares were issued in connection with the Reverse Stock Split. Instead, if the Reverse Stock Split conversion resulted in a new share total that included a fractional share, the stockholder of the fractional share was entitled to receive, in lieu of such fractional share, a cash payment in an amount that is equal to the volume weighted average price of Two Harbors common stock reported on the NYSE on November 1, 2017.

Following the Reverse Stock Split, the CUSIP number for Two Harbors common stock changed to 90187B408. Two Harbors common stock continues to trade on the NYSE under the ticker symbol "TWO."

The Reverse Stock Split did not impact the number of shares of Granite Point Stock that you may have been entitled to receive in connection with the Stock Dividend, as the determination of the number of shares of Granite Point Stock that you may have been entitled to receive was made prior to the Effective Time of the Reverse Stock Split.

The Reverse Stock Split was a non-taxable event to stockholders, with the exception of cash in lieu of fractional shares. Upon the sale of such fractional share by the distribution agent on behalf of a stockholder, such stockholder generally will recognize short-term or long-term capital gain or loss, depending on such stockholder’s holding period of Two Harbors common stock, for U.S. federal income tax purposes equal to the difference, if any, between the amount realized and the stockholders basis in the fractional share. The cash in lieu of Two Harbors common stock received by certain Two Harbors common stockholders, including non-U.S. stockholders, was reduced in connection with any applicable withholding taxes.

HOLDERS OF TWO HARBORS COMMON STOCK ARE URGED TO CONSULT THEIR OWN TAX ADVISORS WITH RESPECT TO THE U.S. FEDERAL, STATE AND LOCAL AND NON-U.S. TAX CONSEQUENCES OF THE REVERSE STOCK SPLIT.