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Slide #21. Two Harbors Investment Corp. — Bulk pool of mortgage servicing rights from Flagstar Bank, FSB
Two Harbors Investment Corp. (NYSE:TWO)
Bulk pool of mortgage servicing rights from Flagstar Bank, FSB
Two Harbors Investment Corp. (NYSE:TWO) today announced that its wholly owned subsidiary, Matrix Financial Services Corporation ("Matrix"), has entered into an agreement to acquire a bulk pool of mortgage servicing rights ("MSRs") from Flagstar Bank, FSB ("Flagstar"), a subsidiary of Flagstar Bancorp, Inc. (NYSE:FBC). Under the agreement, Flagstar will sell to Matrix the MSRs on residential mortgage loans having an aggregate unpaid principal balance of approximately $40.7 billion, for the purchase price of approximately $500 million. The underlying pool of mortgage loans is comprised of Fannie Mae and Ginnie Mae loans, originated primarily after 2010. The acquisition is expected to close on or about December 31, 2013, and is subject to customary closing conditions.
Two Harbors Investment is a holding company. Through its subsidiaries, Co. operates as a real estate investment trust. Co.'s portfolio can be categorized into two strategies based on investment characteristics: Rates Strategy, which includes assets that are sensitive to changes in interest rates, prepayments and mortgage spreads, including but not limited to Agency residential mortgage-backed securities, mortgage servicing rights and related hedging transactions; and Credit Strategy, which includes assets that are sensitive to changes in the credit performance of the underlying collateral, including but not limited to non-Agency securities and related hedging transactions.
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