Invesco Mortgage Capital REIT – Mortgage REITs see Steep Decline amid Coronavirus Turmoil

Have you suffered losses investing in a Mortgage REIT such as Invesco Mortgage Capital REIT? If so, the securities attorneys at The White Law group may be able to help you to recover your losses through FINRA Arbitration.

Shares of mortgage real-estate investment trusts declined sharply last Wednesday, according to the Wall Street Journal, reflecting growing concerns about firms that “use borrowed money to juice returns at a time when funding markets are in turmoil.”

Invesco Mortgage Capital REIT, which focuses on financing and managing residential and commercial mortgage-backed securities and mortgage loans, reportedly said yesterday that it was unable to meet the margin calls it received on March 23, and did not expect to be able to meet the expected volume of future margin calls under its financing arrangements, as a result of COVID-19-related market disruptions.

Further, the REIT reportedly said it was in discussions with its lenders with regard to entering forbearance agreements, in which its lenders would agree to forbear their rights with respect to an event of default.

The company said it was delaying the payment of its previously announced dividend in order to preserve liquidity, given the impact that fixed income markets have had on its balance sheet and overall liquidity.

Unfortunately for investors, shares of Invesco Mortgage Capital REIT are down -84.86% YTD.

Recovery of Investment Losses

The White Law Group is investigating FINRA arbitration claims involving broker dealers who may have improperly recommended mortgage REITs to investors.

Brokerage firms are required to perform due diligence on any investment they recommend, including mortgage REITs. They must ensure that the investment is suitable for a particular investor in light of that investor’s age, investment objectives, income, net worth, and investment experience.  Given the current risk of devaluation of these REITs, such investments are likely only suitable for wealthy and/or sophisticated investors.

If you have suffered losses in a mortgage REIT such as Invesco Mortgage Capital REIT, please call the securities attorneys of The White Law Group at (888)637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on the firm, please visit https://www.whitesecuritieslaw.com.