Cherry Hill Mortgage Investment Corp (NYSE: CHMI)

Cherry Hill Mortgage Investment Corp (CHMI), a company operating in the residential real estate finance industry, is primarily engaged in acquiring, investing in, and managing residential mortgage assets in the United States. The company operates through three segments: investments in Residential Mortgage-Backed Securities (RMBS), investments in Servicing-Related Assets (SRA), and All Other.

Cherry Hill Mortgage Investment Corp's main business activities involve investing in various types of mortgage-backed securities. Its primary targeted asset classes include RMBS, such as Agency RMBS, residential mortgage pass-through certificates, Collateralized Mortgage Obligations (CMOs), and To-Be-Announced (TBAs). The company also invests in current issue, private label non-Agency RMBS, and GSE risk-sharing securities. Additionally, the company's SRA strategy focuses on acquiring Mortgage Servicing Rights (MSRs) from servicers on a bulk and/or flow purchase basis.

The company generates revenue through the collection of servicing fees and other income related to the MSRs in its SRA segment. In its RMBS segment, the company finances its RMBS with a prudent amount of leverage, which varies based on market conditions and the characteristics of its portfolio. The company uses repurchase transactions under master repurchase agreements, which are collateralized by its RMBS, to finance its RMBS. It also uses interest rate swaps, TBAs, swaptions, and Treasury futures to hedge against interest rate risk and financing pricing risk. The All Other segment is focused on generating revenue through the acquisition and investment in current issue, private label non-Agency RMBS, and GSE risk-sharing securities.

Cherry Hill Mortgage Investment Corp competes with other mortgage REITs, specialty finance companies, savings and loan associations, banks, mortgage bankers, insurance companies, mutual funds, institutional investors, investment banking firms, financial institutions, governmental bodies, and other entities for investment opportunities. The company's human capital resources are limited, with only 12 individuals working in its business, and it relies on its Manager to provide the necessary personnel and services.

The company's investment guidelines are designed to ensure that it remains qualified as a Real Estate Investment Trust (REIT) and maintains an exception from the definitions of an investment company under the Investment Company Act. Its investment guidelines include restrictions on principal transactions and split price executions with Freedom Mortgage or its affiliates, as well as requirements for material investments outside of its targeted asset classes.

As a REIT, Cherry Hill Mortgage Investment Corp is subject to U.S. federal income tax on its taxable income that is not distributed to its stockholders. The company is required to distribute at least 90% of its annual REIT taxable income, excluding net capital gains, to its stockholders. Failure to qualify as a REIT would result in the company being subject to U.S. federal income tax on its taxable income at regular corporate rates.

The company's brand names and/or trade names of its products and services include Cherry Hill Mortgage Investment Corp, RMBS, SRA, All Other, Agency RMBS, residential mortgage pass-through certificates, CMOs, TBAs, MSRs, current issue, private label non-Agency RMBS, and GSE risk-sharing securities.