CHMI

Cherry Hill Mortgage Investment Corporation is a residential mortgage real estate investment trust investing in residential mortgage assets in the U.S. The REIT acquires and manages mortgage-backed securities (MBS) issued by government-sponsored enterprises including Fannie Mae and Freddie Mac, and to a lesser extent non-agency MBS and residential mortgage loans. Cherry Hill employs leverage to enhance returns, borrowing against its MBS portfolio through repurchase agreements. The company generates income from the spread between interest earned on mortgage assets and borrowing costs. Founded in 2012 and headquartered in Farmingdale, New Jersey, Cherry Hill is externally managed by an affiliate of Freedom Mortgage Corporation. The REIT operates in the mortgage REIT sector characterized by interest rate sensitivity, prepayment risks, and leverage risks. Cherry Hill faced significant challenges during 2020 market volatility when margin calls and liquidity pressures impacted mortgage REITs. The company has smaller scale compared to larger agency mortgage REITs and faces heightened volatility. Cherry Hill continues to manage its portfolio, optimize leverage, and navigate interest rate environments while seeking to generate dividends for shareholders through mortgage investment strategies.