Analysts expected CCM to raise debt to proceed with the Two Harbors deal, valued at $1.26 billion, flagging rising leverage as an integration challenge as well as the complex task of bringing a large servicing portfolio in-house. A shift from secured to unsecured debt, however, is viewed as credit positive because it frees up collateral and strengthens liquidity, analysts added. Two Harbors will bring a $159 billion portfolio to CCM’s $202 billion as of the first quarter, according to Inside Mortgage Finance. According to Fitch, Two Harbors will further enhance CCM’s business profile by growing its servicing portfolio and enabling more profitable in-house servicing through RoundPoint Mortgage Servicing LLC, which Two Harbors acquired in 2023. Earlier this month, Two Harbors said it had secured required state and agency approvals from all but one state for its planned sale to CCM.