Arlington Asset Investment invests mostly in residential mortgage-backed securities (MBS) to provide funds in the mortgage market for institutions such as commercial banks, savings and loans associations, mortgage banking companies, seller/servicers, securities dealers, and other investors. More than 85% of the securities in the financial firm's $4 billion-plus MBS portfolio are backed by the US government through agencies such as Freddie Mac and Fannie Mae. The remainder of Arlington's MBS portfolio consists of private-label funds issued by private organizations. Arlington Asset Investment was founded as Friedman, Billings, Ramsey in 1989.