Ellington Residential Mortgage REIT specializes in acquiring, investing in and actively managing a portfolio of residential mortgage-backed securities (RMBS) that are guaranteed by the U.S. government or a U.S.-sponsored entity, as well as other types of mortgage- and real estate-related asset classes. The company has made the decision to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes and is excluded from registration under the Investment Company Act in order to optimize its investments and provide better returns for shareholders.
Ellington Residential Mortgage REIT primarily buys, invests in, and runs residential mortgage and real estate-related assets through its subsidiaries. Their main goal is to earn good current yields and returns that match the risk level of their investments to benefit their shareholders.
To achieve this, they primarily focus on Agency RMBS (Residential Mortgage-Backed Securities) that are backed by the U.S. government or a U.S.-sponsored entity; and then supplemented with prime jumbo, alternative A-paper mortgage loans, single-family rental property mortgages, manufactured housing mortgages, and subprime residential mortgage loans (non-Agency RMBS). They also take advantage of other opportunities like commercial mortgage-backed securities, residential mortgage loans, mortgage servicing rights, and credit risk securities.
Ellington Residential Mortgage REIT has chosen to be treated as a real estate investment trust (REIT) for US federal income tax purposes and is excluded from registration under the Investment Company Act. This allows them to optimize their investments and provide better returns for their shareholders.
By combining Agency RMBS with non-Agency RMBS and other residential and commercial mortgage-related assets, Ellington Residential Mortgage REIT is able to balance a variety of mortgage-associated risks in order to maximize investment opportunities and generate attractive yields for their investors. These practices set Ellington Residential Mortgage REIT apart from its competition, making them one of the leading providers of real estate investment opportunities in the industry.