AG Mortgage recently sold its RMBS, non-agency RMBS, and CMBS for $244 million to continue reallocating capital to its non-QM portfolio. Roberts said that asset appreciation on their residential and commercial investments had driven a 3% quarter-over-quarter increase in its adjusted book value.

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As Arc Home continues to expand its non-QM footprint, the company’s non-QM originations grew to $376.2 million in the second quarter, compared to $187.9 million in the previous quarter. Non-QM represented 34.2% of Arc Home’s funded product mix in Q2, more than double the 15.6% share in Q1.

“We executed another preferred stock exchange offer and raised approximately $3.1 million through the issuance of 0.2 million shares of common stock,” said T.J. Durkin, president of AG Mortgage.

Additionally, AG Mortgage participated in a rated securitization through its joint venture Angelo Gordon funds, in which it securitized $171 million of non-QM loans.