Here are 1-3 brief analogies for Cherry Hill Mortgage Investment (CHMI):

• Like a specialized investment fund, similar to those managed by PIMCO or Vanguard, but entirely dedicated to residential mortgage-backed securities.

• A large bank (like JPMorgan Chase) that invests in mortgage-backed assets, but without the branches, deposits, or direct lending.

• Residential Mortgage-Backed Securities (RMBS): Investments in financial instruments backed by pools of residential mortgages.
• Servicing Related Assets: Investments in assets connected to the servicing rights and activities for mortgage loans.

Cherry Hill Mortgage Investment (CHMI) identifies the following as its major supplier:

• Cherry Hill Mortgage Management LLC

Jeffrey B. Lown II, President and Chief Executive Officer

Mr. Lown has over 25 years of combined experience in the financial services industry and the residential mortgage markets. He has served as President and a director of Cherry Hill Mortgage Investment Corporation since its initial public offering in October 2013 and as Chief Executive Officer since March 2017. Prior to joining Freedom Mortgage in April 2012, where he was Executive Vice President in charge of strategic funding projects and capital markets, Mr. Lown served as a Portfolio Manager at Avenue Capital Group. He also held roles at the Office of Thrift Supervision (OTS), UBS Securities LLC in mortgage trading, where he managed an internal mortgage origination platform, and began his career at Salomon Brothers (now Citigroup) in 1991.

Apeksha Patel, Chief Financial Officer, Treasurer and Secretary

Ms. Patel was appointed Interim Chief Financial Officer, Treasurer, and Secretary effective June 22, 2025. She previously served as the Company's Controller since June 2019, following her role as Assistant Controller from August 2017 to June 2019. Before joining Cherry Hill Mortgage Investment Corporation, Ms. Patel held multiple positions within the public accounting sector at Mazars USA LLP and SB Partners LLP. She holds a Bachelor of Commerce degree from Ryerson University and is a licensed Certified Public Accountant (CPA) in New Jersey.

Julian Evans, Chief Investment Officer

Mr. Evans serves as Chief Investment Officer for Cherry Hill Mortgage Investment Corporation, a position he has held since March 2016. He brings over 20 years of experience in the financial services industry. Before the company's IPO, Mr. Evans was Senior Vice President at Freedom Mortgage since April 2013. Prior to that, from April 2004 to September 2012, he was the Head of the MBS Sector Team and Senior Portfolio Manager for Deutsche Asset Management, where he led a team managing residential mortgage-backed securities (RMBS) assets and was responsible for establishing the mortgage strategy for the investment platform.

The key risks to Cherry Hill Mortgage Investment Corporation (CHMI), a residential real estate finance company operating as a mortgage real estate investment trust (mREIT), are primarily centered around interest rate fluctuations, high leverage, and the sustainability of its dividend distributions.

1. Interest Rate Risk and Net Interest Margin Compression: As an mREIT, Cherry Hill Mortgage Investment Corporation's business model relies on borrowing money at short-term rates and investing in longer-term residential mortgage-backed securities (RMBS) and mortgage servicing rights (MSRs) to earn a net interest spread. Therefore, the company is highly sensitive to changes in interest rates. A rise in short-term interest rates can increase its borrowing costs, potentially compressing or even turning its net interest income negative if the yield on its assets does not increase commensurately. While CHMI employs hedging strategies, its hedge ratio has been historically low, which may heighten its vulnerability to sudden increases in interest rates. Unfavorable movements in interest rates can also impact the valuation of its MSRs and the prepayment rates on its RMBS portfolio.

2. High Leverage and Debt Financing Risk: Cherry Hill Mortgage Investment Corporation utilizes significant leverage to enhance its returns, with its leverage ratio climbing from approximately 3x to over 5x in recent years. A substantial portion of its debt is short-term, often maturing in under 60 days, which exposes the company to considerable refinancing risk and makes it highly susceptible to rapid interest rate increases. Elevated leverage can also restrict the company's capacity to expand its investments and magnify the negative effects of adverse interest rate movements on its financial performance.

3. Dividend Sustainability and Earnings Volatility: As a real estate investment trust (REIT), CHMI is legally required to distribute at least 90% of its taxable income to shareholders, making its dividend a critical component for many investors. However, there are significant concerns regarding the sustainability of its high dividend yield, with reports indicating weak coverage by earnings and operating cash flow. The company's dividend payout ratio has been notably high (e.g., 2,000% in Q3 2025), which is a clear red flag for income-focused investors. Moreover, Cherry Hill's net income has exhibited substantial volatility, fluctuating between losses and gains, which can deter large institutional investors and contribute to stock price instability.

Cherry Hill Mortgage Investment Corporation's addressable markets in the United States for its main products and services, residential mortgage-backed securities (RMBS) and servicing related assets (Mortgage Servicing Rights or MSRs), are substantial.

Residential Mortgage-Backed Securities (RMBS)

The U.S. RMBS market is one of the largest fixed-income markets globally. As of mid-2023, the Federal Reserve reported over USD 11 trillion in outstanding mortgage-backed securities in the United States. More recently, the Mortgage Backed Securities Market size was estimated at USD 14.37 trillion in 2024 and is projected to reach USD 15.55 trillion in 2025. This market includes both agency-backed and private-label RMBS.

Servicing Related Assets (Mortgage Servicing Rights - MSRs)

The market for Mortgage Servicing Rights (MSRs) in the U.S. has seen significant activity. In 2024, trading volumes for MSRs approached the $1 trillion mark, a trend expected to persist into 2025. The fair value of mortgage servicing rights held by banks for other portfolios reached $42.62 billion at the end of 2025, with these banks servicing $2.82 trillion of mortgages for others. This indicates the scale of the underlying mortgage balances that generate MSRs and the substantial value of the servicing rights themselves.

Cherry Hill Mortgage Investment (CHMI) is expected to experience future revenue growth over the next 2-3 years driven by several key factors:

1. Continued Growth of the Strategic Partnership with Real Genius LLC: Cherry Hill's strategic partnership with Real Genius LLC, a digital mortgage technology company, is consistently highlighted as a source of ongoing growth. This collaboration is anticipated to contribute steadily to the company's financial performance.
2. Favorable Market Conditions Stemming from Potential Federal Reserve Rate Cuts: The company anticipates benefiting from favorable market conditions, particularly following potential Federal Reserve rate cuts. Lower interest rates are expected to stimulate mortgage activity and enhance overall performance metrics for the company's residential mortgage assets.
3. Strategic Management and Repositioning of RMBS and MSR Portfolios: Cherry Hill Mortgage Investment actively manages and repositions its residential mortgage-backed securities (RMBS) and Mortgage Servicing Rights (MSR) portfolios. This includes adjusting the RMBS portfolio towards the middle of the coupon stack and making hedge portfolio adjustments to capitalize on market dynamics such as spread tightening and declining interest rates, thereby optimizing revenue generation from these core assets.
4. Disciplined Growth and Maintenance of Balance Sheet Strength: Management has indicated a constructive outlook for 2026, emphasizing disciplined growth strategies while maintaining a strong balance sheet. This approach involves prudent leverage management and strategic capital allocation, which are foundational for sustainable revenue expansion.

Share Repurchases

• Cherry Hill Mortgage Investment Corporation's Board of Directors authorized the repurchase of up to $50 million of the Company's preferred stock (8.20% Series A and 8.250% Series B) on December 19, 2023.
• This preferred stock repurchase authorization does not have an expiration date.

Share Issuance

• In August 2025, Cherry Hill accessed its at-the-market equity program, generating approximately $8.9 million in additional proceeds.
• Shareholders have experienced dilution in the past year.

Inbound Investments

• In May 2025, CHMI Solutions, Inc., a subsidiary of CHMI, entered into a strategic partnership and financing agreement with Real Genius LLC, a Florida-based digital mortgage technology company.