AG Mortgage Investment Trust expands its non-QM portfolio

It confirms solid financial results in the second quarter

AG Mortgage Investment Trust expands its non-QM portfolio

AG Mortgage Investment Trust reported that it originated $376 million in non-QM loans in the second quarter through its affiliate company Arc Home Loans.

During the quarter, the mortgage REIT said it purchased $446 million of non-QM loans from various originators and participated in two non-QM securitizations as part of its strategy to grow its residential investments portfolio.

“We are pleased with the results we achieved during the quarter as we made significant progress in our transition to a company focused on residential mortgage origination and securitization,” said AG Mortgage CEO David Roberts.

AG Mortgage recently sold its RMBS, non-agency RMBS, and CMBS for $244 million to continue reallocating capital to its non-QM portfolio. Roberts said that asset appreciation on their residential and commercial investments had driven a 3% quarter-over-quarter increase in its adjusted book value.

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As Arc Home continues to expand its non-QM footprint, the company’s non-QM originations grew to $376.2 million in the second quarter, compared to $187.9 million in the previous quarter. Non-QM represented 34.2% of Arc Home’s funded product mix in Q2, more than double the 15.6% share in Q1.

“We executed another preferred stock exchange offer and raised approximately $3.1 million through the issuance of 0.2 million shares of common stock,” said T.J. Durkin, president of AG Mortgage.

Additionally, AG Mortgage participated in a rated securitization through its joint venture Angelo Gordon funds, in which it securitized $171 million of non-QM loans.

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