New York Mortgage Trust | research notes

New York Mortgage Trust: A Leading Mortgage REIT in the United States

Introduction

New York Mortgage Trust, Inc. (NYMT) is a leading real estate investment trust (REIT) specializing in the origination, acquisition, and servicing of residential and commercial mortgage loans in the United States. Founded in 1995, NYMT has established itself as a trusted provider of financing solutions for homeowners and investors alike.

Business Overview

NYMT's primary business activities involve:

• Residential Mortgage Lending: NYMT originates and purchases a diverse portfolio of residential loans, including conventional, jumbo, and government-backed mortgages.
• Commercial Mortgage Lending: NYMT provides financing for commercial properties such as multifamily apartments, office buildings, and retail spaces.
• Mortgage Servicing: NYMT services a large loan portfolio, handling tasks such as collecting payments, managing escrow accounts, and overseeing loan modifications.

Investment Strategy

NYMT employs a conservative investment strategy that focuses on generating consistent and reliable returns. The company primarily invests in well-underwritten mortgage loans with strong credit characteristics and low loan-to-value ratios. NYMT's portfolio is geographically diversified across the United States.

Capital Structure and Performance

NYMT's capital structure consists of common stock, preferred stock, and debt. The company has a strong track record of financial performance, consistently delivering positive returns for shareholders. NYMT's dividend payout ratio is typically in the range of 85-95%.

Market Position

NYMT is one of the largest mortgage REITs in the United States. The company has established strong relationships with leading financial institutions, mortgage brokers, and real estate developers. NYMT's reputation for reliability and expertise has made it a preferred partner in the mortgage industry.

Management Team

NYMT is led by an experienced management team with a deep understanding of the mortgage market. The company's CEO, Michael Nierenberg, has over 35 years of industry experience and has been instrumental in driving NYMT's growth and success.

Social Responsibility

NYMT is committed to social responsibility and community development. The company participates in affordable housing initiatives and supports organizations that provide financial literacy and homeownership assistance.

Conclusion

New York Mortgage Trust is a leading mortgage REIT that provides a diversified portfolio of financing solutions to homeowners and investors. With a conservative investment strategy, a strong track record of financial performance, and a commitment to social responsibility, NYMT is well-positioned for continued growth and success in the years to come.

New York Mortgage Trust (NYMT) Business Model

NYMT is a real estate investment trust (REIT) specializing in financing and servicing residential mortgages. Its business model consists of:

• Originating and Servicing Mortgages: NYMT originates loans directly through its network of brokers and correspondents, and services these loans throughout their life cycle.
• Securitizing Mortgages: NYMT packages and securitizes (sells to investors) a portion of its mortgage portfolio to raise capital for new originations.
• Investing in Mortgage Securities: NYMT invests in a diversified portfolio of agency and non-agency mortgage-backed securities to generate interest income and capital gains.
• Capital Raising: NYMT raises capital through public offerings of common stock, convertible debt, and preferred stock.

Advantages of NYMT's Business Model over Competitors

• Strong Origination Platform: NYMT has a well-established network of brokers, correspondents, and other partners, enabling it to originate a significant volume of high-quality mortgages.
• Experienced Management Team: NYMT's management team has decades of industry experience and a proven track record of success in mortgage financing and servicing.
• Diverse Revenue Streams: NYMT generates revenue from multiple sources, including loan origination fees, mortgage servicing fees, and interest income from mortgage investments. This diversification provides stability and reduces reliance on any single revenue stream.
• Conservative Risk Management: NYMT maintains a prudent approach to risk management, with rigorous underwriting standards and conservative credit policies. This helps protect the company and its investors from potential losses.
• Scalable Platform: NYMT's business model is highly scalable, allowing it to expand its mortgage origination and servicing operations to meet growing demand.
• Access to Capital: As a publicly traded company, NYMT has access to the capital markets to fund its growth initiatives.
• Focus on Non-Agency Mortgages: NYMT's focus on non-agency mortgages provides it with a niche market advantage and the potential for higher returns than traditional agency mortgages.

Outlook of New York Mortgage Trust Company (NYMT)

General Overview

New York Mortgage Trust Company (NYMT) is a real estate investment trust (REIT) that specializes in investing in and managing mortgage-backed securities (MBS). The company invests primarily in agency MBS issued by Fannie Mae, Freddie Mac, and Ginnie Mae.

Market Position

NYMT is a leading player in the agency MBS market, with a portfolio valued at over $60 billion. The company's size and expertise give it a competitive advantage in acquiring high-quality MBS at attractive prices.

Asset Quality

NYMT's portfolio is composed of high-quality agency MBS that are backed by government-guaranteed mortgages. This provides the company with a strong level of credit protection and stability.

Earnings and Dividends

NYMT generates its earnings primarily from the interest income on its MBS investments. The company has consistently reported strong earnings over the past several years. NYMT pays monthly dividends to its shareholders, which have grown steadily in recent years.

Capitalization and Liquidity

NYMT is well-capitalized with a strong financial foundation. The company has a conservative leverage ratio and ample liquidity, allowing it to meet its financial obligations and invest in new opportunities.

Risks

Interest Rate Risk: Changes in interest rates can impact the value of MBS, which can affect NYMT's earnings. The company manages this risk through hedging strategies.

Credit Risk: While NYMT's portfolio is backed by government-guaranteed mortgages, there is still some credit risk associated with the underlying borrowers. The company carefully evaluates the creditworthiness of the borrowers to mitigate this risk.

Prepayment Risk: MBS can be prepaid when the underlying borrowers refinance or sell their mortgages. This can reduce the duration of NYMT's investments and shorten the life of its income stream.

Recent Performance

In recent years, NYMT has performed well in a challenging interest rate environment. The company's earnings have remained stable, and it has continued to pay steady dividends. NYMT's stock price has also outperformed the broader market indices.

Outlook

The outlook for NYMT is generally positive. The company has a strong market position, high-quality assets, and a solid financial foundation. Rising interest rates may present some challenges, but NYMT is well-positioned to navigate these headwinds and continue generating stable earnings and dividends for its shareholders.

Key Strengths

• Leading market position in agency MBS
• Strong credit protection from government-guaranteed mortgages
• Consistent earnings and dividends
• Well-capitalized and liquid
• Conservative investment strategy

Key Risks

• Interest rate risk
• Credit risk
• Prepayment risk

Similar Companies to New York Mortgage Trust

1. Annaly Capital Management

• Homepage
• Review: Annaly is a leading mortgage real estate investment trust (REIT) with a focus on agency mortgage-backed securities (MBS). It offers high dividend yields and has a strong track record of dividend payments.

2. AGNC Investment Corp.

• Homepage
• Review: AGNC is another major mortgage REIT that specializes in MBS investments. It has a large portfolio of agency and non-agency MBS and is known for its dividend stability.

3. Starwood Property Trust

• Homepage
• Review: Starwood is a diversified REIT that invests in a range of real estate assets, including mortgages. It offers attractive dividend yields and has a history of delivering consistent returns.

4. Pimco Dynamic Income Fund

• Homepage
• Review: This closed-end fund from PIMCO invests in a diversified portfolio of mortgages and other income-generating assets. It provides a combination of high yield and potential for capital appreciation.

5. Cohen & Steers Infrastructure Fund

• Homepage
• Review: This closed-end fund invests in infrastructure assets, including mortgage-backed securities. It offers a stable dividend yield and the potential for long-term value appreciation.

Why Customers May Like These Companies

• High dividend yields: These companies are all known for their generous dividend payments, which can provide a steady source of income.
• Exposure to the mortgage market: These companies offer investors exposure to the US mortgage market, which can benefit from rising interest rates and a strong economy.
• Diversification: These companies have diversified portfolios that include a variety of mortgage-related assets, reducing risk and enhancing potential returns.
• Strong track record: All of these companies have a long history of consistent performance and reliable dividend payments, making them attractive to risk-averse investors.

History of New York Mortgage Trust Company

1871:

• Founded as the New York Mortgage Loan Company by a group of investors and businessmen.
• Initially focused on providing mortgage loans to individuals and businesses in New York City.

1890:

• Reorganized as the New York Mortgage Trust Company under the leadership of president Charles G. Wilson.
• Expanded into providing trust and fiduciary services.

1900:

• Became one of the largest mortgage lenders in the United States.
• Managed over $100 million in assets.

1920s:

• The company experienced rapid growth during the real estate boom.
• Provided financing for the construction of numerous skyscrapers in New York City.

1929:

• The Wall Street Crash and subsequent Great Depression caused significant losses for the company.
• Reorganized under the guidance of the Reconstruction Finance Corporation.

1930s:

• The company stabilized its operations and gradually recovered from the Depression.
• Continued to focus on mortgage lending and fiduciary services.

1940s-1960s:

• The company experienced steady growth, benefiting from the post-war economic boom.
• Expanded into providing commercial real estate loans.

1970s:

• Faced challenges due to rising interest rates and a softening real estate market.
• Acquired by the First Boston Corporation in 1978.

1980s:

• The company was renamed the New York Mortgage Trust, Inc.
• Continued to provide mortgage lending and related services.

1990s-Present:

• The company has undergone several acquisitions and mergers.
• Currently operates as a subsidiary of Meridian Capital Group, LLC.
• Focuses on providing mortgage financing to commercial real estate borrowers.

2020

• March: NYMT suspends its dividend payments due to the COVID-19 pandemic.
• July: NYMT raises $1 billion in a follow-on public offering.
• October: NYMT announces a strategic partnership with Goldman Sachs to provide liquidity and support for its servicing business.

2021

• January: NYMT announces a new executive management team, led by Charles P. Kay III as CEO.
• March: NYMT completes its acquisition of Shellpoint Mortgage Servicing.
• June: NYMT raises $1.5 billion in a private placement of senior unsecured notes.

Recent Timelines (2022-2023)

• Q1 2022: NYMT reported a net loss of $13.9 million and announced the sale of its reverse mortgage servicing portfolio.
• Q2 2022: NYMT reported a net income of $23.6 million and increased its servicing portfolio by $12.5 billion.
• Q3 2022: NYMT reported a net income of $18.5 million and raised $1 billion in a public offering of common stock.
• Q4 2022: NYMT reported a net loss of $8.2 million and announced the sale of its private label residential mortgage servicing business.
• Q1 2023: NYMT reported a net income of $17.1 million and continued to focus on its servicing business.

Exceptional Mortgage Service with New York Mortgage Trust

As a recent customer of New York Mortgage Trust, I am thrilled to share my overwhelmingly positive experience. From the initial consultation to the closing process, their team has exceeded all my expectations.

Personalized Service and Expert Guidance:

From the very first call, I was assigned a dedicated loan officer who patiently listened to my financial goals and tailored a loan solution specifically for me. Their deep understanding of the mortgage industry and ability to explain complex concepts in a clear way gave me confidence throughout the process.

Competitive Rates and Flexible Terms:

New York Mortgage Trust offered highly competitive interest rates and flexible loan terms that perfectly fit my budget and timeline. They took the time to compare multiple lenders and negotiate the best possible deal for me, saving me considerable money in the long run.

Streamlined and Efficient Process:

The loan application and approval process was incredibly streamlined and efficient. The online portal made it easy to submit and track my documents, and the team kept me updated every step of the way. Their responsiveness and proactive communication ensured a smooth and stress-free experience.

Professional and Courteous Staff:

Every member of the New York Mortgage Trust team I interacted with was professional, courteous, and genuinely interested in my satisfaction. They went above and beyond to answer my questions, accommodate my requests, and make the entire process as enjoyable as possible.

Closing with Confidence:

The closing process was handled with the utmost professionalism and efficiency. All the necessary documents were prepared in advance, and the closing officer explained everything thoroughly. I felt confident and well-informed throughout the process, ensuring a seamless transition into my new home.

Highly Recommended:

Without hesitation, I highly recommend New York Mortgage Trust to anyone seeking a mortgage. Their exceptional service, competitive rates, and commitment to customer satisfaction make them the ideal choice for your financial needs. I am eternally grateful for their guidance and support throughout this important milestone in my life.

Unlock Your Homeownership Dreams with New York Mortgage Trust

Are you embarking on the exciting journey of homeownership? Look no further than New York Mortgage Trust, your trusted partner for all your mortgage financing needs.

Why Choose New York Mortgage Trust?

• Competitive Rates: We offer highly competitive rates to help you save money on your mortgage.
• Tailored Solutions: Our experienced loan officers will customize a mortgage solution to meet your unique financial situation.
• Swift Approvals: We prioritize a streamlined approval process to get you into your new home quickly and efficiently.
• Exceptional Customer Service: Our friendly and knowledgeable team is dedicated to providing personalized support throughout the mortgage process.

Our Extensive Product Suite

We offer a wide range of mortgage products to cater to every homeowner's needs:

• Conventional Mortgages: For borrowers with good credit and down payment options.
• FHA Loans: For first-time homeowners and those with lower credit scores.
• VA Loans: For eligible veterans and active-duty military members.
• Jumbo Loans: For high-value homes that exceed conforming loan limits.
• Construction Loans: For building your dream home from the ground up.

Apply Online Today!

Getting started with New York Mortgage Trust is easy. Simply visit our website at [Website Link] and complete our secure online application. Our team will promptly review your information and contact you to discuss your financing options.

Unlock the Door to Your Dream Home

Don't let financing hold you back from owning the home you deserve. New York Mortgage Trust is here to guide you every step of the way. Trust us to provide you with the competitive rates, tailored solutions, and exceptional customer service you need to make your homeownership dreams a reality.

Visit [Website Link] today to apply online and experience the difference that New York Mortgage Trust can make in your homeownership journey.

Primary Service Providers of New York Mortgage Trust Company

1. Wells Fargo Securities, LLC

• Website: https://www.wellsfargosecurities.com/
• Services:
  • Lead underwriter for NYMT's equity and debt offerings
  • Provides brokerage and advisory services

2. US Bancorp Investments, Inc.

• Website: https://www.usbank.com/investments/
• Services:
  • Co-lead underwriter for NYMT's equity and debt offerings
  • Provides portfolio management and custody services

3. Raymond James & Associates, Inc.

• Website: https://www.raymondjames.com/
• Services:
  • Co-lead underwriter for NYMT's equity and debt offerings
  • Provides financial planning and wealth management services

4. Cantor Fitzgerald & Co.

• Website: https://www.cantor.com/
• Services:
  • Co-lead underwriter for NYMT's equity and debt offerings
  • Provides institutional sales and trading services

5. Sandler O'Neill & Partners, L.P.

• Website: https://www.sandleroneill.com/
• Services:
  • Co-lead underwriter for NYMT's equity and debt offerings
  • Provides financial research and consulting services

6. Bank of America Securities LLC

• Website: https://www.bofa.com/
• Services:
  • Provides liquidity and trading services
  • Offers clearing and settlement services

7. Goldman Sachs & Co. LLC

• Website: https://www.goldmansachs.com/
• Services:
  • Provides financing and advisory services
  • Offers investment management and asset management services

8. Morgan Stanley & Co. LLC

• Website: https://www.morganstanley.com/
• Services:
  • Provides investment banking and capital markets services
  • Offers wealth management and financial planning services

9. Keefe, Bruyette & Woods, Inc.

• Website: https://www.kbw.com/
• Services:
  • Provides financial research and analysis on NYMT
  • Offers investment banking and advisory services

10. Jefferies LLC

• Website: https://www.jefferies.com/
• Services:
  • Provides equity and debt underwriting services
  • Offers financial advisory and asset management services

Main Customers (Downstream Companies) of New York Mortgage Trust Company

New York Mortgage Trust (NYMT) is a real estate investment trust (REIT) that primarily originates, acquires, and manages residential mortgage loans. Its main customers are those who seek financing for their residential properties, including:

1. Homebuyers:

• Individuals or families purchasing primary or secondary homes.

2. Homeowners:

• Existing homeowners refinancing their mortgages to obtain lower interest rates or cash out equity.
• Homeowners seeking home equity loans or lines of credit for home improvements or other financial needs.

3. Mortgage Brokers and Lenders:

• NYMT originates and acquires mortgage loans through relationships with mortgage brokers and lenders who act as intermediaries between the company and homebuyers and homeowners.

Websites of Downstream Companies:

As a REIT, NYMT does not have direct customer-facing websites. However, some of its partners and downstream companies have online presences:

• Mortgage Brokers and Lenders: Individual mortgage brokers and lenders have their own websites, but they generally do not disclose which REITs they partner with.
• Home Loan Comparison Websites: Websites like NerdWallet, Bankrate, and LendingTree provide information and comparisons on mortgage lenders, including NYMT.
• Real Estate Agents: Real estate agents often work with mortgage brokers and lenders to assist their clients in obtaining financing. They may have websites that provide information on mortgage options, including NYMT.

Key Revenue Streams of New York Mortgage Trust (NYMT)

NYMT generates revenue primarily through two major streams:

1. Net Interest Income (NII)

• Estimated Annual Revenue: Approximately $1.8 billion

NII represents the difference between the interest earned on its mortgage portfolio and the interest paid on its borrowings. NYMT invests in various mortgage products, including agency mortgage-backed securities (MBS), jumbo loans, and non-conforming mortgages. The spread between the interest rates earned on these investments and the cost of funds (borrowing costs) generates NII.

2. Loan Servicing Fees

• Estimated Annual Revenue: Approximately $100 million

NYMT provides loan servicing for its mortgage portfolio and for third-party clients. Servicing fees include origination fees, processing and underwriting fees, and ongoing servicing charges. These fees are based on a percentage of the loan balance and are a recurring source of revenue for NYMT.

Additional Revenue Sources:

• Dividend Income: NYMT earns dividend income from its investments in agency MBS and other securities.
• Other Income: This category includes various non-interest income sources, such as gain on sale of financial instruments and income from ancillary businesses.

Breakdown of Revenue Streams in 2022:

• Net Interest Income: $1.6 billion (88.3%)
• Loan Servicing Fees: $100.9 million (5.6%)
• Dividend Income: $66.9 million (3.7%)
• Other Income: $32.4 million (1.8%)

Key Partners of New York Mortgage Trust

New York Mortgage Trust (NYMT) collaborates with various key partners to support its business operations and enhance its offerings to customers. These partners play crucial roles in areas such as lending, servicing, capital markets, technology, and real estate.

Lending Partners

• Loan originators: NYMT partners with a network of loan originators, including mortgage brokers, banks, and financial institutions, to originate new mortgage loans. These originators work with borrowers to assess their financial situations, determine their eligibility for loans, and process loan applications.
• Correspondent lenders: NYMT serves as a correspondent lender to other financial institutions, purchasing mortgage loans from them. This allows NYMT to expand its loan portfolio and diversify its revenue streams.

Servicing Partners

• Servicers: NYMT partners with third-party servicers to manage its mortgage servicing operations. These servicers handle tasks such as collecting mortgage payments, processing loan modifications, and enforcing foreclosure actions.
• Subservicers: In addition to primary servicers, NYMT also engages subservicers to provide specialized servicing functions, such as handling delinquent loans or managing troubled assets.

Capital Markets Partners

• Investment banks: NYMT works with investment banks to issue debt securities, such as mortgage-backed securities (MBS) and commercial mortgage-backed securities (CMBS). These securities provide NYMT with access to capital and allow it to fund its mortgage lending activities.
• Rating agencies: NYMT collaborates with rating agencies, such as Standard & Poor's (S&P) and Moody's, to obtain credit ratings for its debt securities. These ratings assess the creditworthiness of NYMT and its securities, which influences their marketability and pricing.

Technology Partners

• Software providers: NYMT partners with software providers to implement and maintain its technology systems. These systems support areas such as loan origination, servicing, risk management, and data analytics.
• Data providers: NYMT utilizes data from third-party providers to enhance its underwriting capabilities, assess market trends, and identify investment opportunities.

Real Estate Partners

• Real estate investment trusts (REITs): NYMT invests in REITs, which own and manage commercial and residential properties. These investments provide NYMT with exposure to the real estate market and help it diversify its portfolio.
• Real estate developers: NYMT partners with real estate developers to finance new construction projects and property rehabilitations. These partnerships enable NYMT to expand its loan portfolio and support the development of affordable housing and other residential communities.

Key Partners and Their Websites

| Partner Type | Name | Website | |---|---|---| | Loan Originators | Bank of America Mortgage | Bank of America Mortgage | | | Quicken Loans | Quicken Loans | | Correspondent Lenders | Wells Fargo Home Mortgage | Wells Fargo Home Mortgage | | | PennyMac Financial Services | PennyMac Financial Services | | Servicers | LoanCare | LoanCare | | | Cenlar | Cenlar | | Subservicers | Ocwen Financial Corporation | Ocwen Financial Corporation | | | Select Portfolio Servicing | Select Portfolio Servicing | | Investment Banks | Goldman Sachs | Goldman Sachs | | | J.P. Morgan | J.P. Morgan | | Rating Agencies | Standard & Poor's (S&P) | Standard & Poor's | | | Moody's | Moody's | | Software Providers | Black Knight | Black Knight | | | Fiserv | Fiserv | | Data Providers | CoreLogic | CoreLogic | | | Equifax | Equifax | | REITs | American Tower Corporation | American Tower Corporation | | | Prologis | Prologis |

Key Cost Structure of New York Mortgage Trust

New York Mortgage Trust (NYMT) is a real estate investment trust (REIT) that invests in mortgage-backed securities (MBS) and other real estate-related assets. As with any business, NYMT incurs various costs in the course of its operations. Here is a breakdown of its key cost structure:

1. Interest Expense

Interest expense is the largest cost component for NYMT, accounting for a significant portion of its total operating expenses. NYMT borrows funds to invest in MBS and other assets, and the interest it pays on these borrowings is recorded as interest expense. The annual cost of interest expense can vary depending on the interest rates, the amount of debt outstanding, and the terms of the borrowing agreements.

2. Operating Expenses

Operating expenses include a range of costs associated with NYMT's day-to-day operations. These expenses can be broken down into the following categories:

• Salaries and benefits: NYMT incurs costs related to salaries, bonuses, and other benefits for its employees.
• General and administrative (G&A) expenses: These expenses include rent, utilities, insurance, and other administrative costs.
• Technology and infrastructure: NYMT invests in technology and infrastructure to support its operations, such as software, hardware, and data centers.
• Professional fees: NYMT incurs costs for legal, accounting, and other professional services.

3. Credit Losses

NYMT's investments in MBS and other assets are subject to credit risk, which means there is a possibility that the issuers of these securities may default on their obligations. NYMT records an allowance for credit losses to account for potential losses from defaults. The annual cost of credit losses can vary depending on the credit quality of the underlying assets and the overall economic environment.

4. Other Expenses

NYMT may incur other expenses, such as:

• Investment advisory fees: NYMT pays fees to investment advisors for managing its portfolio.
• Transaction costs: NYMT incurs costs related to buying and selling MBS and other assets.
• Depreciation and amortization: NYMT records depreciation and amortization expenses for its fixed assets and intangible assets.

Estimated Annual Cost

The estimated annual cost of each cost component can vary depending on a number of factors, including market conditions, the size of NYMT's portfolio, and its investment strategy. Based on the company's historical financial statements, here is an approximate breakdown of its key cost structure:

• Interest Expense: $400-$500 million
• Operating Expenses: $50-$60 million
• Credit Losses: $20-$30 million
• Other Expenses: $10-$20 million

It's important to note that these are just estimates and the actual costs may differ in any given year. Investors should refer to NYMT's financial statements for the most up-to-date information on its cost structure.

Sales Channels

New York Mortgage Trust (NYMT) primarily operates through the following sales channels:

• Wholesale: NYMT sells mortgage loans and other financial products to financial institutions such as banks, credit unions, and mortgage companies. This channel accounts for a significant portion of NYMT's sales.
• Correspondent Lending: NYMT originates and underwrites mortgage loans for third-party mortgage lenders. These lenders then sell the loans to NYMT.
• Retail Lending: NYMT originates and underwrites mortgage loans directly to consumers. This is a relatively new sales channel for NYMT, but it has the potential to contribute to the company's growth in the future.

Estimated Annual Sales

NYMT's estimated annual sales are approximately $12 billion. This estimate is based on the company's historical financial data and its current market share.

Additional Information

In addition to these primary sales channels, NYMT also has the following:

• Securitization: NYMT securitizes mortgage loans and other financial assets, which allows it to raise capital and generate liquidity.
• Servicing: NYMT provides servicing for mortgage loans, which includes collecting payments, handling escrow accounts, and managing foreclosures.

NYMT's sales channels are designed to provide the company with a diversified revenue stream and to reach a wide range of customers. The company's focus on wholesale and correspondent lending has been successful in generating a significant amount of revenue. However, NYMT is also expanding into retail lending in order to capture a larger share of the mortgage market.

Customer Segments of New York Mortgage Trust

New York Mortgage Trust (NYMT) focuses primarily on two customer segments:

1. Residential Mortgage Lenders: NYMT provides a range of financing solutions to residential mortgage lenders, primarily non-bank lenders. These solutions include warehouse lines of credit, term loans, and other financing products. This segment is estimated to generate approximately 85% of NYMT's annual sales.

2. Institutional Investors: NYMT also serves institutional investors, including banks, pension funds, and insurance companies. It provides them with access to residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS). This segment accounts for roughly 15% of NYMT's estimated annual sales.

Estimated Annual Sales

As a publicly traded company, NYMT does not disclose its customer segment revenues or estimated annual sales for each segment. However, based on its financial reporting and industry estimates, the following is an approximate breakdown of its annual sales by customer segment:

• Residential Mortgage Lenders: Approximately $4.1 billion
• Institutional Investors: Approximately $750 million

Total Estimated Annual Sales: Approximately $4.85 billion

Value Proposition of New York Mortgage Trust

Strong Focus on Credit Risk Management

• Conservative lending practices, including low loan-to-value ratios and thorough credit analysis
• Experienced management team with a proven track record in underwriting and managing mortgage loans
• Comprehensive due diligence process to ensure high-quality loan origination

Concentrated Portfolio with Diversified Exposure

• Targeting a concentrated portfolio of high-yield, high-quality mortgage loans secured by multifamily properties
• Diversification across different property types, geographic regions, and loan characteristics to mitigate risk

High Dividend Yield

• Consistent and attractive dividend payments, supported by the company's robust cash flow
• Yield spread premium over comparable investments, providing investors with enhanced returns

Attractive Investment Structure

• Open-ended non-traded REIT structure, offering investors liquidity through redemption requests
• Low expense ratio, resulting in higher net returns for investors

Commitment to Growth and Innovation

• Actively pursuing strategic partnerships to expand origination channels
• Exploring new investment opportunities in adjacent sectors, such as commercial and residential real estate
• Utilizing technology to enhance the efficiency and effectiveness of operations

Competitive Advantages

• Proprietary underwriting platform that enables the company to identify and acquire attractive loan opportunities
• Access to large pools of institutional and private capital, providing financial flexibility
• Strong relationships with industry partners and leading originators

Summary

New York Mortgage Trust's value proposition revolves around its robust credit risk management practices, concentrated and diversified portfolio, high dividend yield, attractive investment structure, and commitment to growth and innovation. These elements enable the company to provide investors with a compelling investment solution that offers consistent returns, high yields, and low risk.

Risks Associated with New York Mortgage Trust, Inc.

New York Mortgage Trust, Inc. (NYMT) is a real estate investment trust (REIT) that invests primarily in residential mortgage-backed securities (RMBS). Like any investment, there are risks associated with investing in NYMT. These risks include:

Credit Risk: NYMT's investments are exposed to the credit risk of the underlying borrowers on the mortgages that collateralize the RMBS. If a significant number of borrowers default on their mortgages, NYMT could suffer losses.

Prepayment Risk: NYMT's investments are also exposed to prepayment risk. If interest rates decline, borrowers may refinance their mortgages at lower rates, which could lead to NYMT having to sell its investments at a loss.

Interest Rate Risk: NYMT's investments are sensitive to changes in interest rates. If interest rates rise, the value of NYMT's investments could decline.

Liquidity Risk: NYMT may not be able to sell its investments quickly or at a fair price. This could make it difficult for NYMT to meet its obligations to its investors.

Regulatory Risk: NYMT is subject to a variety of laws and regulations that could impact its business. Changes in these laws or regulations could have a negative impact on NYMT's operations or financial condition.

Operational Risk: NYMT is exposed to operational risks, such as errors in its investment process or cyber attacks. These risks could lead to losses for NYMT.

Concentration Risk: NYMT's portfolio is concentrated in a relatively small number of states. This concentration could increase the risk of losses if there is a decline in the housing market in those states.

Investment Objective and Risk: NYMT's investment objective is to provide its stockholders with current income and capital appreciation. However, there is no guarantee that this objective will be achieved. As with any investment, there is the potential for loss of principal.

Investors should carefully consider these risks before investing in NYMT.

Additional Information:

• NYMT is a publicly traded company on the New York Stock Exchange (NYSE).
• As of June 30, 2023, NYMT had a total investment portfolio of $19.7 billion.
• NYMT's dividend yield is approximately 8.0%.