AG Mortgage Investment Trust (MITT) Declares $0.475 Quarterly Dividend; Forms New Mortgage Banking Platform

AG Mortgage Investment Trust (NYSE: MITT) declared a quarterly dividend of $0.475 per share, or $1.9 annualized.

The dividend will be payable on January 29, 2016, to stockholders of record on December 21, 2015, with an ex-dividend date of December 17, 2015.

The annual yield on the dividend is 13.9 percent.

The Company also announced today that it has formed a mortgage banking platform called Arc Home LLC (“Arc Home”) to originate conforming, FHA, Jumbo and non-QM residential mortgage loans. The Company formed Arc Home alongside private funds under the management of Angelo, Gordon & Co., L.P. (“Angelo, Gordon”). Arc Home will be led by 30 year industry veteran Barry Bier.

The Company believes that forming Arc Home will provide attractive strategic and financial benefits to MITT and its shareholders, including:

• Licenses to originate, sell and service Fannie Mae, Freddie Mac and FHA/Ginnie Mae mortgage loans nationwide;
• Developing a leading efficient electronic lending program supporting the development of the electronic mortgage note market;
• The ability to purchase high quality housing finance products from compliance focused and qualified originators;
• The capability to purchase Mortgage Servicing Rights (“MSRs”) and to create excess MSRs for MITT at attractive yields;
• Enhancing the value of existing mortgage loans owned by MITT and Angelo, Gordon funds by implementing an active portfolio retention strategy;
• Creating an independent operating entity benefiting from MITT’s investment professionals and the broader Angelo, Gordon alternative investment platform; and
• Providing a management team comprised of leading mortgage banking professionals.

Arc Home will be managed by Barry Bier, Sandy Blitzer, Martin Schroeter and Brad Brautigam (the “Management Team”). The Management Team has extensive experience building nationwide residential mortgage banking platforms. Arc Home anticipates that it will obtain the licenses needed to begin originating mortgage loans in 2016.

“We chose to partner with an extremely experienced and talented management team, with whom I have worked for over 20 years,” said Jonathan Lieberman, Chief Investment Officer of MITT. “The management team of Barry, Sandy, Martin and Brad stood out to us as the right operating partner with a well-deserved reputation for excellence in the mortgage industry.”

David Roberts, Chief Executive Officer of MITT, added, “MITT’s portfolio will benefit from Arc Home’s ability to create high quality residential mortgage investment opportunities. Arc Home expects to originate conforming, FHA, Jumbo and non-QM residential mortgage loans through a combination of retail, wholesale and correspondent channels, as well as MSRs. These investments significantly advance MITT’s strategic growth initiatives.”

Barry Bier, Chief Executive Officer of Arc Home, added, “We share MITT’s and Angelo, Gordon’s high standards and believe our management team and theirs are very compatible. We are excited to form Arc Home as a sustainable source of future growth for MITT.”

Arc Home will initially be capitalized with up to $30.0 million of which approximately $15.0 million will be provided by MITT.

For a dividend history and other dividend-related data on AG Mortgage Investment Trust (MITT) click here.

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