Anworth Mortgage Asset Corp., which buys MBS in the secondary market, reported a third quarter common dividend of $0.23 a share, an 8% reduction from the dividend declared in the second quarter.
The publicly traded company noted "The GSEs' substantial buyback of delinquent loans was completed during the quarter, and the effect of these buybacks on reducing our leverage continued during July."
Based in Santa Monica, Calif., Anworth invests primarily in MBS guaranteed by Fannie Mae, Freddie Mac, and GNMA.
The company and other mortgage investing REITs have seen their income clipped by Fannie and Freddie stepping up their purchases of delinquent loans out of MBS pools. However, the GSEs (for now) have stopped buying nonperforming loans on a large scale, and going forward will be more selective in their repurchases.
In trading, Anworth's stock was up 1% to $7.21.