Arlington Asset Investment Corp. is a

mortgage A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any pu ...

real estate investment trust A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, including office and apartment buildings, warehouses, hospitals, shopping cente ...

headquartered in

McLean, Virginia McLean ( ) is an unincorporated community and census-designated place (CDP) in Fairfax County in Northern Virginia. McLean is home to many diplomats, military, members of Congress, and high-ranking government officials partially due to its proxim ...

. The company is an investment firm that focuses primarily on investing in mortgage related assets and residential real estate. The company's investment capital is currently allocated between the following assets classes: - mortgage servicing right ("MSR") related assets - credit investments - single family residential ("SFR") properties - agency

mortgage-backed security A mortgage-backed security (MBS) is a type of asset-backed security (an 'instrument') which is secured by a mortgage or collection of mortgages. The mortgages are aggregated and sold to a group of individuals (a government agency or investment ba ...

("MBS") The company's MSR related assets represent investments for which the return is based on the economic performance of a pool of specific MSRs. An MSR provides a mortgage servicer with the right to service a pool of residential mortgage loans in exchange for a portion of the interest payments made on underlying residential mortgage loans. The Company's credit investments generally include investments in mortgage loans secured by either residential or commercial real property or MBS collateralized by residential or commercial mortgage loans ("non-agency MBS") or

asset-backed security An asset-backed security (ABS) is a security whose income payments, and hence value, are derived from and collateralized (or "backed") by a specified pool of underlying assets. The pool of assets is typically a group of small and illiquid asset ...

("ABS") collateralized by residential solar panel loans. The company's SFR investment strategy is to acquire, lease and operate single-family residential homes as rental properties. The company's agency MBS consist of residential pass-through certificates for which the principal and interest payments are guaranteed by a U.S. government sponsored enterprise ("GSE"), such as

Fannie Mae The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company. Founded in 1938 during the Great Depression as part of the N ...

Freddie Mac The Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Freddie Mac, is a publicly traded, government-sponsored enterprise (GSE), headquartered in Tysons Corner, Virginia.Eric Billings Eric Francis Billings (born 1954) is an American businessman and financier who has served as the chairman of Arlington Asset Investment Arlington Asset Investment Corp. is a mortgage real estate investment trust headquartered in McLean, Virginia ...

, and

Russ Ramsey W. Russell "Russ" Ramsey is an American financier and philanthropist, and the founder, chairman and CEO of asset management firm Ramsey Asset Management. He cofounded the Washington, D.C., investment firm Friedman, Billings, Ramsey Group in 1989, ...

. In 1997, the company became a

public company A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange (l ...

via an

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...

, raising $206 million. Ramsey left the company in 2001. Following the

early 2000s recession The early 2000s recession was a decline in economic activity which mainly occurred in developed countries. The recession affected the European Union during 2000 and 2001 and the United States from March to November 2001. The UK, Canada and Aus ...

, FBR Group invested heavily in

subprime mortgage In finance, subprime lending (also referred to as near-prime, subpar, non-prime, and second-chance lending) is the provision of loans to people in the United States who may have difficulty maintaining the repayment schedule. Historically, subpri ...

s. During the

subprime mortgage crisis The United States subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010 that contributed to the Financial crisis of 2007–2008, 2007–2008 global financial crisis. It was triggered by a large decline ...

, the company incurred severe losses related to its underperforming mortgage origination platform and widespread problems in subprime mortgage lending, which led to a sale of ownership in FBR's subprime subsidiary, First NLC Financial Services, in the summer of 2007. Friedman left FBR Group in 2005. In June 2007,

FBR Capital Markets FBR & Co. (Nasdaq:FBRC, formerly known as ''Friedman, Billings, Ramsey Group'') was a capital markets firm headquartered in Arlington, Virginia. Founded in 1989 by Emanuel J. Friedman, Eric F. Billings, and W. Russell Ramsey, the company provide ...

was formed through a

corporate spin-off A corporate spin-off, also known as a spin-out, or starburst or hive-off, is a type of corporate action where a company "splits off" a section as a separate business or creates a second incarnation, even if the first is still active. Characte ...

from FBR Group. From its founding through 2008, FBR Group was taxed as a

. Starting in 2009, the company converted to a C corporation to use its

net operating loss Under U.S. Federal income tax law, a net operating loss (NOL) occurs when certain tax-deductible expenses exceed taxable revenues for a taxable year. If a taxpayer is taxed during profitable periods without receiving any tax relief (e.g., a refund ...

carry-forwards and net capital loss carry-forwards to shield substantially all of its income from income taxes. In May 2009, FBR Group sold a portion of its investment in FBR Capital Markets for $72.5 million. In October 2009, the remaining investment in FBR Capital Markets was sold for $84.1 million. In June 2009, the company changed its name to Arlington Asset Investment Corp. In June 2014,

Eric Billings Eric Francis Billings (born 1954) is an American businessman and financier who has served as the chairman of Arlington Asset Investment Arlington Asset Investment Corp. is a mortgage real estate investment trust headquartered in McLean, Virginia ...

stepped down as CEO and J. Rock Tonkel, Jr. was appointed CEO, with Billings continuing as Executive Chairman. Tonkel previously served as the company's President and Chief Operating Officer. Effective in 2019, the company converted back to a

after it had used its net operating loss carry-forwards. Effective December 31, 2019,

retired. Starting in 2020, the company began to transition the company from primarily a levered agency MBS strategy to one focused on multiple investment channels in mortgage servicing rights, single-family residential rental properties, credit investments and agency MBS.

Sponsorship

The company sponsored the

Phoenix Open The Phoenix Open (branded as the WM Phoenix Open for sponsorship reasons) is a professional golf tournament on the PGA Tour, held in late January/early February at TPC Scottsdale in Scottsdale, Arizona. The tournament was originally the Arizona ...

PGA golf tournament held in

Scottsdale, Arizona , settlement_type = City , named_for = Winfield Scott , image_skyline = , image_seal = Seal of Scottsdale (Arizona).svg , image_blank_emblem = City of Scottsdale Script Logo.svg , nick ...

from 2004 until 2009.

References

External links

* * {{Authority control 1989 establishments in Washington, D.C. 1997 initial public offerings Companies based in Arlington County, Virginia Companies listed on the New York Stock Exchange Financial services companies established in 1989 Investment management companies of the United States Mortgage-backed security Real estate investment trusts of the United States