Cherry Hill Mortgage Investment Corporation Provides COVID-19 Operational Update
April 13 2020 - 7:00AM
Business Wire
Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) (the
“Company” or “Cherry Hill”), a real estate finance company that
acquires, invests in and manages residential mortgage assets in the
United States, today provided an operational update on its
business.
Cherry Hill’s priority is to ensure the health and well-being of
all of its team members. All team members have been working
remotely since early March. The transition has been virtually
seamless due to the Company’s use of a cloud-based solution for its
day-to-day operations.
As of April 13, 2020 the Company has:
- Unrestricted cash of approximately $92 million after giving
effect to scheduled settlements today
- Continued to proactively and prudently manage its RMBS
portfolio to reduce leverage to approximately 5.1x for its
aggregate portfolio as of March 31, 2020, compared to approximately
6.1x at December 31, 2019
- Reduced its position in credit risk transfer bonds to
approximately $17 million market value, substantially all of which
it owns outright
The recently enacted federal
government’s Coronavirus Aid, Relief, and Economic Security Act
(CARES) provides for mortgage loan forbearance programs. Although
the level of participation in those programs and the potential size
of the resulting servicing advance obligations is unknown, the
Company believes that it is adequately positioned to utilize its
liquidity to manage and meet its advancing obligations over the
near-term.
Based on initial information regarding servicing costs,
servicing income and third-party MSR valuations available, the
Company preliminarily estimates that its GAAP book value as of
March 31, 2020 declined between 25% to 30% since December 31,
2019.
Forward-Looking Statements This press release contains
forward looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and other federal
securities laws, including, among others, statements relating to
(i) the Company’s liquidity and its ability to meet its advancing
obligations on mortgage loans underlying its servicing-related
assets and satisfy other cash-using obligations in the near term,
(ii) the Company’s preliminary estimate of financial metrics such
as GAAP book value and (iii) the Company’s ability to generate
sustainable and attractive risk-adjusted returns for stockholders.
The percentage decline in GAAP book value is preliminary and is
subject to change as the Company completes its quarter-end closing
process and obtains complete information from third parties
regarding its servicing-related assets. These forward-looking
statements are based upon the Company’s present expectations, but
there can be no assurances that these expectations will be fully
realized, if at all. For a description of factors that may cause
the Company's actual results or performance to differ from its
forward-looking statements, please review the information under the
heading “Risk Factors” included in the Company's Annual Report on
Form 10-K for the year ended December 31, 2019, and other documents
filed by the Company with the Securities and Exchange
Commission.
Readers are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made.
The Company 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200413005137/en/
Investor Relations (877) 870 –7005
InvestorRelations@CHMIreit.com
Cherry Hill Mortgage Inv... (NYSE:CHMI)
Historical Stock Chart
From Apr 2024 to May 2024
Cherry Hill Mortgage Inv... (NYSE:CHMI)
Historical Stock Chart
From May 2023 to May 2024