Company: MITN
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001514281-25-000026
Chunk: 25

Company: AG Mortgage Investment Trust, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1A
Chunk 25
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 may make it more difficult for the loan servicers to perform a variety of services for us, which may adversely impact our business and financial results.

•If Arc Home's ability to sell loans in the secondary market is impaired, it could affect its volume and margins, which adversely affect its business and, in turn, would have a negative impact on our results.

•Arc Home is subject to extensive licensing requirements and regulation, which could materially and adversely affect us.

•An economic slowdown or a deterioration of the housing market could negatively impact Arc Home's lending and servicing businesses.

Risks Related to our Investments

•Our investments in non-agency residential mortgage loans, including Non-QM Loans in particular, subject us to legal, regulatory and other risks.

•We invest in Agency-Eligible Loans, which expose us to an increased risk of loss.

•We invest in Home Equity Loans and may invest in other second lien mortgage loans, which expose us to an increased risk of loss.

•Changes in prepayment rates may adversely affect the return on our investments.

•Prepayment rates are difficult to predict, and market conditions may disrupt the historical correlation between interest rate changes and prepayment trends.

•Any credit ratings assigned to our investments will be subject to ongoing evaluations and revisions and we cannot assure you that those ratings will not be downgraded.

•Our investment in lower rated Non-Agency RMBS resulting from the securitization of our assets or otherwise, exposes us to the first loss on the mortgage assets held by the securitization vehicle. Additionally, the principal and interest payments on Non-Agency RMBS are not guaranteed by any entity, including any government entity or GSE, and therefore are subject to increased risks, including credit risk.

Risks Related to Legacy WMC Commercial Investments

•Commercial real estate-related investments that are secured by commercial real property, which were acquired by us in the WMC acquisition, are subject to delinquency, foreclosure and loss, which could result in losses to us.

Risks Related to U.S. Government Programs

•The federal conservatorship of Fannie Mae and Freddie Mac and related efforts, along with any changes in laws and regulations affecting the relationship between these agencies and the U.S. government, may adversely affect our business.

Risks Related to Financing Activities

•We have a material amount of corporate indebtedness, which could have significant effects on our business.

•Our business strategy involves the use of leverage, and we may become overleveraged or not achieve what we believe is optimal