- New businesses launched during the quarter include high-LTV and non-prime mortgage originations. The high-LTV business is an extension of Two Harbors' (TWO +0.3%) current prime jumbo program and is focused on higher credit quality borrower who wish to make smaller down payments. The non-prime program is aimed at average credit quality borrowers unable to get a loan thanks to tight credit conditions - a potentially large market, says the company.
- Two Harbors continues to see a big opportunity in mortgage servicing rights and is aiming to cultivate a product and seller mix overlapping both the MSR and conduit businesses.
- In commercial loans, the company notes the size of the market is over $3T, and more than $1.5T is maturing over the next several years. Typical loan amounts will range from $10M-$100M and floating rates should provide upside if rates ever turn higher.
- Presentation slides