Cherry Hill Mortgage Investment Corp Files 2023 10-K

TL;DR

<b>Cherry Hill Mortgage Investment Corp filed its annual 10-K report for the fiscal year ending December 31, 2023.</b>

AI Summary

Cherry Hill Mortgage Investment Corp (CHMI-PA) filed a Annual Report (10-K) with the SEC on March 7, 2024. Filed 10-K for the fiscal year ended December 31, 2023. Company is Cherry Hill Mortgage Investment Corp. Incorporated in Maryland. Primary SIC code is Real Estate Investment Trusts [6798]. Business and mailing address in Farmingdale, NJ.

Why It Matters

For investors and stakeholders tracking Cherry Hill Mortgage Investment Corp, this filing contains several important signals. This filing provides a comprehensive overview of the company's financial performance and operations for the past fiscal year. Investors and analysts can use this report to assess the company's financial health, strategic direction, and potential risks.

Risk Assessment

Risk Level: low — Cherry Hill Mortgage Investment Corp shows low risk based on this filing. The filing is a standard 10-K, which is a routine annual report and does not contain immediate, significant new risks beyond those typically associated with real estate investment trusts.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Cherry Hill Mortgage Investment Corp's performance and outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Report period)
• 2024-03-07 — Filing Date (Date of submission)
• 0001140361-24-011952 — Accession Number (Unique identifier for the filing)
• 001-36099 — SEC File Number (SEC registration number)

Key Players & Entities

• Cherry Hill Mortgage Investment Corp (company) — Filer name
• 10-K (document) — Filing type
• 2023-12-31 (date) — Fiscal year end
• 2024-03-07 (date) — Filing date
• MD (location) — State of incorporation
• NJ (location) — Business and mailing state
• 6798 (industry_code) — Standard Industrial Classification

FAQ

Industry Context

Cherry Hill Mortgage Investment Corp operates within the Real Estate Investment Trusts (REITs) sector, specifically focusing on mortgage-related assets.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit annual reports detailing their financial condition.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and asset/liability changes.
2. Review the risk factors section for potential challenges and uncertainties.
3. Examine disclosures related to mortgage servicing rights and investment valuations.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-07: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the 2023 10-K filing, providing the latest annual financial overview for Cherry Hill Mortgage Investment Corp.

Key Financial Figures

• $0.01 — e on Which Registered Common Stock, $0.01 par value 8.20% Series A Cumulative R

Filing Documents

• ef20015322_10k.htm (10-K) — 3998KB
• ef20015322_ex1-3.htm (EX-1.3) — 27KB
• ef20015322_ex1-4.htm (EX-1.4) — 27KB
• ef20015322_ex4-2.htm (EX-4.2) — 181KB
• ef20015322_ex21-1.htm (EX-21.1) — 6KB
• ef20015322_ex23-1.htm (EX-23.1) — 4KB
• ef20015322_ex31-1.htm (EX-31.1) — 11KB
• ef20015322_ex31-2.htm (EX-31.2) — 12KB
• ef20015322_ex32-1.htm (EX-32.1) — 6KB
• ef20015322_ex32-2.htm (EX-32.2) — 6KB
• ef20015322_ex97.htm (EX-97) — 36KB
• image00001.jpg (GRAPHIC) — 21KB
• 0001140361-24-011952.txt (&nbsp;) — 16718KB
• chmi-20231231.xsd (EX-101.SCH) — 85KB
• chmi-20231231_cal.xml (EX-101.CAL) — 104KB
• chmi-20231231_def.xml (EX-101.DEF) — 440KB
• chmi-20231231_lab.xml (EX-101.LAB) — 1101KB
• chmi-20231231_pre.xml (EX-101.PRE) — 601KB
• ef20015322_10k_htm.xml (XML) — 3608KB

Business

Business 9 Item 1A.

Risk Factors

Risk Factors 16 Item 1B. Unresolved Staff Comments 42 Item 1C. Cybersecurity 42 Item 2.

Properties

Properties 43 Item 3.

Legal Proceedings

Legal Proceedings 43 Item 4. Mine Safety Disclosures 43 PART II 44 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 44 Item 6. Reserved 47 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 48 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 68 Item 8. Consolidated Financial Statements and Supplementary Data 73 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 116 Item 9A.

Controls and Procedures

Controls and Procedures 116 Item 9B. Other Information 118 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 118 PART III 118 Item 10. Directors, Executive Officers and Corporate Governance 118 Item 11.

Executive Compensation

Executive Compensation 119 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 119 Item 13. Certain Relationships and Related Transactions, and Director Independence 119 Item 14. Principal Accountant Fees and Services 119 PART IV 119 Item 15. Exhibits and Financial Statement Schedules 119 Item 16. Form 10-K Summary 123 Table of Contents GLOSSARY This glossary defines some, but not all, of the terms that we use elsewhere in this Annual Report on Form 10-K. In this Annual Report on Form 10-K, unless specifically stated otherwise or the context otherwise indicates, references to "we", "us", "our", the "Company" or "CHMI" refer to Cherry Hill Mortgage Investment Corporation, a Maryland corporation, together with its consolidated subsidiaries; references to the "Manager" refer to Cherry Hill Mortgage Management, LLC, a Delaware limited liability company; and references to the "Operating Partnership" refer to Cherry Hill Operating Partnership, LP, a Delaware limited partnership. "Agency" means a U.S. Government agency, such as Ginnie Mae, or a GSE. "Agency RMBS" means RMBS issued by an Agency or for which an Agency guarantees payments of principal and interest on the securities. "ASC" means an Accounting Standards Codification. "ASU" means the Accounting Standards Update issued by the FASB. "ARM" means an adjustable-rate residential mortgage loan. "CFTC " means the U.S. Commodity Futures Trading Commission. "CMO" means a collateralized mortgage obligation. CMOs are either loss share securities issued by a GSE or structured debt instruments representing interests in specified pools of mortgage loans subdivided into multiple classes, or tranches, of securities, with each tranche having different maturities or risk profiles. "Code" means the Internal Revenue Code of 1986, as amended. "credit enhancement" means techniques to improve the credit ratings of securities, including overcollateralization, creating retained spread, cre

Business

Business Cherry Hill Mortgage Investment Corporation is a publicly traded residential real estate finance company focused on acquiring, investing in and managing residential mortgage assets in the United Stock (our "Series A Preferred Stock") and our 8.250% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (our "Series B Preferred Stock") are listed and traded on the New York Stock Exchange ("NYSE") under the symbols "CHMI", "CHMI-PRA" and "CHMI-PRB", respectively. We are externally managed by Cherry Hill Mortgage Management, LLC, an SEC-registered investment adviser established by Stanley Middleman. Our Manager is a party to a services agreement (the "Services Agreement") with Freedom Mortgage Corporation ("Freedom Mortgage") (in such capacity, the "Services Provider"), which is owned and controlled by Mr. Middleman. Our Manager is owned by a "blind trust" for the benefit of Mr. Middleman. We operate so as to continue to qualify to be taxed as a REIT under the Code. To qualify as a REIT, we must distribute annually to our stockholders an amount at least equal to 90% of our REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gain. We currently expect to distribute substantially all of our REIT taxable income to our stockholders. We will be subject to income tax on our taxable income that is not distributed and to an excise tax to the extent that certain percentages of our taxable income are not distributed by specified dates. CHMI Solutions, Inc. ("Solutions"), which is our TRS, and, Aurora Financial Group, Inc. ("Aurora"), which is our licensed mortgage servicing subsidiary and a wholly owned subsidiary of Solutions, are subject to regular corp

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View this 10-K filing on SEC EDGAR