NEW YORK--(BUSINESS WIRE)--
On March 30, 2017, Chimera Investment Corporation (NYSE: CIM) announces
that it closed four residential mortgage loans securitizations during
the first quarter: $526 million CIM 2017-1; $331 million CIM 2017-2;
$2.4 billion CIM 2017-3; and $830 million CIM 2017-4: collectively $4.1
billion securitizations of seasoned, performing, low-loan balance
residential mortgage loans. In aggregate, Chimera sold $3.4 billion of
securities in private placements to institutional investors and retained
a $640 million interest in these securitizations. Chimera also retained
the option to call the outstanding notes issued by each securitization
at any time beginning in (i) January 2020 for CIM 2017-1, (ii) February
2020 for CIM 2017-2, and (iii) March 2021 for CIM 2017-3 and CIM 2017-4.
“We continue to execute upon our risk-retention securitized loan
strategy by acquiring residential mortgage credit assets that offer
attractive returns for our portfolio,” said Mohit Marria, Chief
Investment Officer.
“Total securitization deal expenses are expected to be approximately $11
million for the first quarter of 2017, which will reduce first quarter
core earnings,” said Rob Colligan, Chief Financial Officer. “We believe
our investments in these securitizations will produce positive results
in future quarters and the full run-rate of these investments will be
reflected in the second quarter 2017.”
Other Information
Chimera Investment Corporation invests in residential mortgage loans,
residential mortgage-backed securities, real estate-related securities
and various other asset classes. The Company’s principal business
objective is to generate income from the spread between yields on its
investments and its cost of borrowing and hedging activities. The
Company is a Maryland corporation that has elected to be taxed as a real
estate investment trust (“REIT”).
Disclaimer
This press release includes “forward-looking statements” within the
meaning of the safe harbor provisions of the United States Private
Securities Litigation Reform Act of 1995. Actual results may differ from
expectations, estimates and projections and, consequently, readers
should not rely on these forward-looking statements as predictions of
future events. Words such as “expect,” “target,” “assume,” “estimate,”
“project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,”
“will,” “could,” “should,” “believe,” “predicts,” “potential,”
“continue,” and similar expressions are intended to identify such
forward-looking statements. These forward-looking statements involve
significant risks and uncertainties that could cause actual results to
differ materially from expected results, including, among other things,
those described in our Annual Report on Form 10-K for the year ended
December 31, 2016, and any subsequent Quarterly Reports on Form 10-Q,
under the caption “Risk Factors.” Factors that could cause actual
results to differ include, but are not limited to: the state of credit
markets and general economic conditions; changes in interest rates and
the market value of our assets; the rates of default or decreased
recovery on the mortgages underlying our target assets; the occurrence,
extent and timing of credit losses within our portfolio; the credit risk
in our underlying assets; declines in home prices; our ability to
establish, adjust and maintain appropriate hedges for the risks in our
portfolio; the availability and cost of our target assets; our ability
to borrow to finance our assets and the associated costs; changes in the
competitive landscape within our industry; our ability to manage various
operational risks and costs associated with our business; interruptions
in or impairments to our communications and information technology
systems; our ability to acquire residential mortgage loans and
successfully securitize the residential mortgage loans we acquire; our
ability to oversee our third party sub-servicers; the impact of any
deficiencies in the servicing or foreclosure practices of third parties
and related delays in the foreclosure process; our exposure to legal and
regulatory claims; legislative and regulatory actions affecting our
business; the impact of new or modified government mortgage refinance or
principal reduction programs; our ability to maintain our REIT
qualification; and limitations imposed on our business due to our REIT
status and our exempt status under the Investment Company Act of 1940.
Readers are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made.
Chimera does not undertake or accept any obligation to release publicly
any updates or revisions to any forward-looking statement to reflect any
change in its expectations or any change in events, conditions or
circumstances on which any such statement is based. Additional
information concerning these and other risk factors is contained in
Chimera’s most recent filings with the Securities and Exchange
Commission (SEC). All subsequent written and oral forward-looking
statements concerning Chimera or matters attributable to Chimera or any
person acting on its behalf are expressly qualified in their entirety by
the cautionary statements above.
Readers are advised that the financial information in this press release
is based on company data available at the time of this presentation and,
in certain circumstances, may not have been audited by the company’s
independent auditors.
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Source: Chimera Investment Corporation