Profile: Ellington Residential Mortgage REIT (EARN.N)
24 Jun 2016
Ellington Residential Mortgage REIT, incorporated on August 2, 2012, is a real estate investment trust (REIT). The Company conducts its business through its subsidiaries, EARN OP GP LLC (the General Partner) and Ellington Residential Mortgage LP (the Operating Partnership). The Company specializes in acquiring, investing in and managing residential mortgage- and real estate-related assets. The Company constructs and managing a portfolio consisting of residential mortgage-backed securities (RMBS) for which the principal and interest payments are guaranteed by the United States Government agency or the United States Government-sponsored entity (Agency RMBS) and, to a lesser extent, RMBS backed by prime jumbo, Alternative A-paper (Alt-A) manufactured housing, and subprime residential mortgage loans (non-Agency RMBS).
Agency Residential Mortgage-Backed Securities
The Company's Agency RMBS include residential mortgage pass-through certificates, collateralized mortgage obligations (CMOs) and to-be-announced mortgage pass-through certificates (TBAs). Its residential mortgage pass-through certificates represent interests in pools of mortgage loans secured by residential real property where payments of both interest and principal, plus prepayments, on the underlying residential mortgage loans are made monthly to holders of the certificates, in effect passing through monthly payments made by the individual borrowers on the mortgage loans that underlie the securities, net of fees paid to the issuer/guarantor and servicers of the securities. Its CMOs are structured instruments representing interests in specified mortgage loan collateral. CMO securitizations consist of multiple classes, or tranches, of securities, with each tranche having specified characteristics based on the rules described in the securitization documents governing the division of the monthly principal and interest distributions, including prepayments, from the underlying mortgage collateral among the various tranches. In addition to investing in specific pools of Agency RMBS, it utilizes forward-settling purchases and sales of Agency RMBS where the underlying pools of mortgage loans are TBAs. It engages in TBA transactions for purposes of managing interest rate risk associated with its liabilities under repurchase agreements (repos).
Non-Agency Residential Mortgage-Backed Securities
The Company's non-agency RMBS holdings include investment grade and non-investment grade classes, including non-rated classes. Non-Agency RMBS are debt obligations issued by private originators of, or investors in, residential mortgage loans. Non-Agency RMBS are issued as CMOs and are backed by pools of whole mortgage loans or by mortgage pass-through certificates. Non-Agency RMBS are in the form of senior/subordinated structures, or in the form of excess spread/over-collateralization structures.
Ellington Residential Mortgage REIT
53 Forest Ave
OLD GREENWICH CT 06870-1526