Chimera Investment Corporation to Sponsor Residential Mortgage Loan Securitization
July 26 2016 - 11:15AM
Business Wire
On July 26, 2016, Freddie Mac announced that Chimera Investment
Corporation (NYSE:CIM) was the winning bidder for Freddie Mac’s
pilot structured sale of seasoned mortgage loans that Freddie Mac
currently guarantees and holds in its mortgage-related investments
portfolio. This transaction is part of Freddie Mac's
guaranteed re-performing loan (RPL) securitization program
(approximately $24 billion securitized to date) and non-performing
loan (NPL) sales program ($4.3 billion sold and settled through
March 31, 2016).
Chimera, either directly or through a wholly-owned subsidiary,
is expected to acquire and simultaneously securitize the seasoned
re-performing residential mortgage loans with an unpaid principal
balance of up to $199 million. Freddie Mac is expected to guarantee
and purchase the senior tranches of the securitization and Chimera,
or an affiliate, will retain the first loss subordinate tranche
which will be subject to the risk retention requirements. Chimera
expects the transaction will close in October 2016.
“We are pleased to work with Freddie Mac on this pilot program
and look forward to additional opportunities to expand our
portfolio of risk retention investments” said Matthew Lambiase,
Chimera’s President and CEO.
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”).
Disclaimers
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy Chimera’s common stock or any other
securities, and there shall not be any offer, solicitation or sale
of securities mentioned in this press release in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
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,
the ultimate structure and terms of any sale of loans by Freddie
Mac to the Company.
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160726006107/en/
Chimera Investment CorporationInvestor Relations,
866-315-9930www.chimerareit.com
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