Article Excerpt:
TWST: We would like to begin with a brief historical sketch of New York Mortgage and a picture of the things you are doing at the present time.Mr. Akre: The company went public in June 2004 as an active prime mortgage REIT, which means that the company has the ability to originate loans for the REIT portfolio. The loans are originated by a taxable REIT subsidiary called New York Mortgage Company, which is a retail mortgage banking entity that does business primarily on the East Coast of the US. The REIT portfolio is about $1.5 billion, and it's comprised of residential mortgage assets. Initially, the portfolio was comprised of purchased mortgage-backed securities and, over time, as those loans are paid down, they are being replaced by loans that are originated by the mortgage company.
TWST: Within the competitive landscape, what might differentiate your
company?
Mr. Wirth: Most of the mortgage REITs in the past have been passive
REITs. They just invest in real estate securities and short-term finance
them, so they earn a net interest spread. There are very few active
mortgage REITs. There are only four public prime active mortgage REITs
in the marketplace right now. We were the first one to go IPO as a prime
active mortgage REIT. There are some sub-prime active mortgage REITs as
well, but overall, active mortgage REITs are few and far between.
Tickers included in this excerpt: NTR
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