ZAIS is a REIT that invests in RMBS. As a real estate investment trust, ZAIS Financial aims to put its money in residential mortgage-backed securities, primarily of the non-agency variety, meaning ones that are not issued or guaranteed by such government-sponsored entities as Fannie Mae, Freddie Mac, and Ginnie Mae. The company also invests in such real estate and financial assets as mortgage servicing rights (MSRs), asset-backed securities (ABS), and commercial mortgage-backed securities (CMBS). Formed in mid-2011, the company now plans to merge with private REIT Sutherland Asset Management.