Two Harbors Investment Corp., a hybrid single-family residential mortgage REIT, recorded net GAAP earnings of $54.6 million during the third quarter when it completed a secondary stock offering and repositioned its portfolio to anticipate the HARP program change.

The company has “done extensive analysis” on the change to the Home Affordable Refinance Program or HARP and traditional refinancing relative to its investments, Bill Roth, co-chief investment officer, said during a company conference call Thursday morning.

The company's mortgage investments held up relatively well during the quarter's volatile market conditions due to its investment team's security selection, capital allocation and hedging strategies, Thomas Siering, president and CEO, said in a company press release.

The company is primarily an agency REIT, but as of Sept. 30 $1.3 billion of its $6.6 billion was in nonagency product, a sector Roth said in the call is one where “statistics are improving.”

Two Harbors has been among market participants positioning themselves to be involved in new Jumbo securitization.

The company had taken a net loss of $984 million the previous quarter when, among other things, the nonagency market was more challenging.

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