NEW YORK - Two Harbors Investment Corp . (NYSE:TWO), a mortgage servicing rights-focused real estate investment trust, has announced the appointment of Travis Swenson as its new Chief Financial Officer, set to take office on May 5, 2025. Until then, Swenson will assume the role of Deputy Chief Financial Officer under the interim CFO William Dellal, who will step down from his position on the effective date of Swenson's appointment.
Swenson joins Two Harbors with a rich background in financial leadership roles. He recently held the position of Chief Financial Officer at Colliers Mortgage Holdings LLC until November 2024 and has previously worked at WeWork (OTC:WEWKQ), Inc. as the Global Head of Client Accounting Services. His experience also extends to CBRE (NYSE:CBRE), Inc., where he was a Senior Managing Director, and Deloitte & Touche LLP, where he began his career and eventually became a Senior Manager.
The incoming CFO also contributes his expertise as a board member and Audit Committee Chair at Air T, Inc. Swenson, a licensed but currently inactive CPA in both Minnesota and California, holds a Bachelor of Accountancy and an MBA from the University of San Diego and the University of Minnesota, respectively.
Bill Greenberg, President and CEO of Two Harbors, expressed confidence in Swenson's capabilities, highlighting his extensive experience in real estate and financial services as key to advancing the company's objectives. The appointment follows a diligent search process by the board.
Two Harbors Investment Corp. is based in St. Louis Park, MN, and specializes in investing in mortgage servicing rights, residential mortgage-backed securities, and other financial assets. This announcement is based on a press release statement from the company.
In other recent news, Two released its Q3 2024 earnings report, demonstrating a steady performance with a book value of $14.93 per share and a comprehensive income of $19.3 million. The company reported a quarterly economic return of 1.3% and a total economic return of 7.0% for the first nine months of the year. Two's investment portfolio totaled $16.4 billion, with $11.4 billion in settled positions, and its direct-to-consumer loan origination channel generated $22.4 million in first mortgages.
The company also unveiled a new branding strategy, emphasizing its core focus on Mortgage Servicing Rights (MSR) as a key investment strategy. In terms of future expectations, Two anticipates a static return estimate between 9.5% to 12.7% and expressed confidence in its long-term strategy, focusing on the stability of low mortgage rate MSRs.
Despite a noted decline in MSR valuation between 1.5% and 3%, and market volatility leading to wider mortgage spreads, the MSR market remained resilient with stable prices and strong demand from banks and non-banks. The company's proactive management approach and strategic initiatives, including the direct-to-consumer loan origination channel, are set to enhance shareholder returns and position Two for future growth.
InvestingPro Insights
As Two Harbors Investment Corp. (NYSE:TWO) prepares for a leadership transition in its finance department, investors may find value in examining the company's current financial position and market performance.
According to InvestingPro data, Two Harbors has a market capitalization of $1.23 billion, reflecting its significant presence in the mortgage REIT sector. The company's price-to-book ratio of 0.79 suggests that it may be trading below its book value, potentially indicating an undervalued stock.
One of the most striking metrics is Two Harbors' impressive dividend yield of 15.13%, which aligns with an InvestingPro Tip noting that the company "pays a significant dividend to shareholders." This high yield could be particularly attractive to income-focused investors in the current market environment. Moreover, Two Harbors has maintained dividend payments for 16 consecutive years, demonstrating a commitment to returning value to shareholders.
However, investors should also consider the company's recent financial performance. The revenue growth for the last twelve months as of Q3 2024 shows a decline of 65.11%, which may be a concern for some. This is further supported by an InvestingPro Tip indicating that analysts anticipate a sales decline in the current year.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 8 more InvestingPro Tips available for Two Harbors Investment Corp., which could provide valuable context for investors evaluating the potential impact of the new CFO appointment on the company's future performance.
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