Governance Documents

Anworth Mortgage Asset Corporation has always striven to maintain the confidence of our stockholders by adhering to the highest ethical and business standards. While proud of our history, we have taken a number of additional steps during the past several years in an effort to maintain the best corporate governance practices based upon a review of our current practices, current and pending laws and regulations, evolving corporate practices and standards and other factors.

These steps include the following:

• - strengthening our Board of Directors by adding a new independent director with extensive business experience and making nominations to our Board to ensure that it consists of a majority of independent directors;
• - adopting a revised written charter for our audit committee;
• forming a nominating and corporate governance committee responsible for nominating directors and developing and overseeing corporate governance standards for our company, and adopting a written charter for such committee;
• - forming a compensation committee responsible for making compensation decisions regarding our officers and employees, and adopting a written charter for such committee;
• - ensuring that each of our audit, nominating and corporate governance and compensation committees are composed exclusively of independent directors;
• - adopting a corporate code of conduct for our officers, employees and directors; and
• - listing our common stock on the New York Stock Exchange, historically noted for its strict corporate governance standards.

We will continue to take additional steps in the future to maintain our high ethical and business as corporate governance principles and practices continue to evolve.

Auditing and Accounting Hotline

Anworth's "Accounting and Auditing Hotline," 866-885-6905 (toll free), is a resource for reporting suspected unethical or illegal activity regarding accounting, internal accounting controls, auditing or other business conduct and corporate governance matters. Although bringing issues to our management's attention is often the best approach, we realize that there are a number of situations where such an approach may not be feasible. For that reason, the Hotline is administered live by an outside firm that can handle calls anonymously as necessary. Please do not hesitate to call Anworth's Hotline at 866-885-6905 (toll free) if you have concerns about suspected unethical or illegal activity at our company.