New Residential Investment Corp. focuses on investing in and actively managing residential real estate. It invests in excess mortgage servicing rights (MSRs) on residential mortgage loans and in servicer advances, including the basic fee component of the related MSRs. The company recently purchased the forward mortgage servicing assets and originations business of Ditech Financial.
Western Asset Mortgage invests, finances, and manages both commercial and residential MBS, whole loans, and other financial assets. The firm has been actively investing in residential MBS since 1974. It's externally managed by Western Asset Management Company. As of June 30, 2019, the firm had $68 billion in total mortgage exposure.
Dynex Capital manages a diversified, leveraged, fixed-income portfolio. It invests in residential and commercial MBS. The CEO recently noted that challenges in the industry include the inverted yield curve that resulted in higher financing costs and lower mortgage rates driving higher prepayment rates. But he said the long-term prospects for mortgage REITs offer a compelling investment opportunity.
Armour Residential invests primarily in fixed-rate residential, adjustable-rate, and hybrid adjustable-rate RMBS. Armour has paid out $1.5 billion in dividends between its founding in 2008 and Sept. 2019. The REIT occasionally invests in U.S. Treasury Securities and money market instruments.
Colony Credit Real Estate, Inc. is a commercial real estate credit REIT formed in January 2018. The mostly U.S.-based REIT originates, acquires, finances, and manages a diversified portfolio of commercial real estate debt and net lease real estate investments. The firm’s external manager has originated more than $25 billion of commercial real estate credit assets.