Arc Home Originates $376M In Non-QM For Q2

AG Mortgage Investment Trust, Inc.'s financial results for Q2 which ended on June 30, 2021 reported that its affiliate company Arc Home Loans, originated $376 million in Non-QM production.

AG Mortgage stated that it was actively purchasing $446 million in Non-QM loans from a number of originators. It also continued to reallocate capital with Non-QM loans increasing to 37% of our investment portfolio from 19% as of March 31, 2021.

Additionally, the company participated in a rated securitization in which $224 million of Non-QM Loans were securitized, converting financing to non-MTM, non-recourse financing. 

Since January 2021, AG Mortgage directly acquired $654.7 million in Non-QM loans with $256.7 million of that coming from Arc Home Loans. Non-QM represented 34.2% of Arc Home's funded product mix in Q2 2021, compared to 15.6% in Q1 2021. 

Arc Home Loans generated a pre-tax net loss of $3.7 million in Q2, which resulted in losses of $(2.7) million for MITT, which does not include $1.4 million of gains recognized by Arc Home in connection with the sale of residential mortgage loans to AG Mortgage Investment Trust.

Read more from AG Mortgage Investment Trust's financial results for Q2 2021.