A federal regulator's decision to kick mortgage real estate investment trusts out of the Federal Home Loan Bank System does not seem to be alarming Two Harbors Investment Corp., which will be forced to exit within five years.

Since Two Harbors became a Home Loan Bank System member in 2013, prior to the rulemaking the mortgage REIT has a five-year grace period to line up new funding sources. Additionally, long-term financings or advances maturing beyond five years will remain in place according to their original terms.

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