Apex Mortgage Capital Inc. said it would broaden its operating policies and invest in the fixed-rate mortgage market.
A new policy, approved by the board of directors and announced this week, will allow Apex to eliminate its bias toward investing mostly in adjustable rate loans.
"The supply of fixed-rate mortgage products has increased in recent months as homeowners refinance from ARMs and other higher-rate mortgages into new fixed-rate mortgages," said Philip A. Barach, chief executive officer. "We believe this increased supply provides many opportunities for investment."
Investments in fixed-rate mortgage assets funded with borrowings are expected to be combined with hedging instruments in order to mitigate interest rate risk, Apex said.