Cherry Hill Mortgage Investment Corp
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
CHMI$2.34-4.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001140361-25-029603
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001140361-25-040783
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 158 previous paragraphs and 158 current paragraphs.
109 unchanged; 45 reworded; 3 added; 4 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 55 previous and 52 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
Since September 2025, the Federal Reserve has reduced its federal funds rate target by 25 basis points to a range of 3.75% to 4.00% due to slowing job growth and increased unemployment. Even though inflation remains above its 2 percent target, the Federal Reserve has determined that in evaluating its dual mandate the downside risks to employment have risen.
Current report
In addition, at its October meeting, the Federal Reserve announced that it will cease reducing its balance sheet, which began in 2022, effective on December 1, 2025. Since 2022, the Federal Reserve has allowed a set amount of Treasury securities and Agency RMBS on its balance sheet to roll off each month without reinvestment. Currently, the Federal Reserve's monthly redemption cap on U.S. Treasury Securities is $5 billion and its redemption cap on agency debt/MBS is $35 billion with excess principal payments reinvested in U.S. Treasury securities. Despite these actions to ease monetary policy, the future course of monetary policy is uncertain. Federal Reserve Chairman Jerome Powell has said that future rate cuts are not a foregone conclusion and will depend on future economic data, including measures of inflation, and financial and international developments.
Current report
Interest income for the three-month period ended September 30, 2025 was $15.6 million as compared to $14.8 million for the three-month period ended June 30, 2025. The increase of $0.8 million in interest income was due to purchases of new securities and an increase in price premium accretion.
Removed paragraphs (4)
Previous report
Since December 18, 2024, the Federal Reserve has maintained the federal funds rate target at 4.25% to 4.5%. This decision followed three consecutive rate cuts starting from September 18, 2024, totaling a 1.0% decrease. The September 2024 cut was the first in four years, following a period of tightened monetary policy in 2022 and 2023 to combat high inflation, which peaked at 9.1% in June 2022. In May 2025, inflation was at 2.4%.
Previous report
The Federal Reserve has indicated its readiness to adjust monetary policy if new risks arise. Additionally, it has slowed the runoff of its balance sheet. On April 1, 2025, the monthly redemption cap on U.S. Treasury Securities was reduced from $25 billion to $5 billion, following a previous reduction from $60 billion to $25 billion in June 2024. The $35 billion cap on agency debt/MBS remains unchanged, with excess principal payments reinvested in U.S. Treasury securities.
Previous report
The Federal Reserve seeks to achieve maximum employment and inflation at a rate of 2% in the long run. In line with this dual mandate, the unemployment rate has remained low, although inflation has remained somewhat above its 2% target. While uncertainty about the economic outlook has diminished, Federal Reserve Chair Jerome Powell recently indicated that the imposition of significant tariffs in the U.S. would likely cause inflation and unemployment to rise, threatening the Federal Reserve’s dual mandate to pursue maximum employment and stable prices. However, he said that the Federal Reserve will await taking action until the data demonstrates the impact of any new tariffs on the U.S. economy.
Previous report
Interest income for each of the three-month periods ended June 30, 2025 and March 31, 2025 was $14.8 million. The change in interest income was nominal.
Reworded paragraphs (45)
Previous wording
We conduct substantially all of our operations and own substantially all of our assets through our Operating Partnership. We are the sole general partner of our Operating Partnership. As of June 30, 2025, we owned 98.2% of our Operating Partnership. Our Operating Partnership, in turn, owns all of the outstanding common stock of CHMI Sub-REIT, Inc. (the “Sub-REIT”). The Sub-REIT has elected to be taxed as a REIT under the Code commencing with its taxable year ended December 31, 2020.
Current wording
We conduct substantially all of our operations and own substantially all of our assets through our Operating Partnership. We are the sole general partner of our Operating Partnership. As of September 30, 2025, we owned 98.3% of our Operating Partnership. Our Operating Partnership, in turn, owns all of the outstanding common stock of CHMI Sub-REIT, Inc. (the “Sub-REIT”). The Sub-REIT has elected to be taxed as a REIT under the Code commencing with its taxable year ended December 31, 2020.
Previous wording
Pursuant to the Company’s Common Stock ATM Program, the Company may offer and sell through one or more sales agents, up to $150.0 million in shares of its common stock at prices prevailing at the time, subject to volume and other regulatory limitations. As of June 30, 2025, approximately $36.5 million was remaining pursuant to the Common Stock ATM Program. During the three-month period ended June 30, 2025, the Company issued and sold 3,229,003 shares of common stock under the Common Stock ATM Program. The shares were sold at a weighted average price of $2.83 per share for aggregate gross proceeds of approximately $9.1 million before fees of approximately $183,000. During the six-month period ended June 30, 2025, the Company issued and sold 4,234,849 shares of common stock under the Common Stock ATM Program. The shares were sold at a weighted average price of $3.00 per share for aggregate gross proceeds of approximately $12.7 million before fees of approximately $254,000. During the year ended December 31, 2024, the Company issued and sold 1,544,917 shares of common stock under the Common Stock ATM Program. The shares were sold at a weighted average price of $3.59 per share for aggregate gross proceeds of approximately $5.6 million before fees of approximately $111,000.
Current wording
Pursuant to the Company’s Common Stock ATM Program, the Company may offer and sell through one or more sales agents, up to $150.0 million in shares of its common stock at prices prevailing at the time, subject to volume and other regulatory limitations. As of September 30, 2025, approximately $34.6 million was remaining pursuant to the Common Stock ATM Program. During the three-month period ended September 30, 2025, the Company issued and sold 674,204 shares of common stock under the Common Stock ATM Program. The shares were sold at a weighted average price of $2.90 per share for aggregate gross proceeds of approximately $2.0 million before fees of approximately $39,000. During the nine-month period ended September 30, 2025, the Company issued and sold 4,909,053 shares of common stock under the Common Stock ATM Program. The shares were sold at a weighted average price of $3.00 per share for aggregate gross proceeds of approximately $14.7 million before fees of approximately $293,000. During the year ended December 31, 2024, the Company issued and sold 1,544,917 shares of common stock under the Common Stock ATM Program. The shares were sold at a weighted average price of $3.59 per share for aggregate gross proceeds of approximately $5.6 million before fees of approximately $111,000.
Previous wording
In September 2019, the Company initiated a share repurchase program that allows for the repurchase of up to an aggregate of $10.0 million of its common stock. As of June 30, 2025, approximately $4.7 million was remaining under the share repurchase program. Shares may be repurchased from time to time through privately negotiated transactions or open market transactions, pursuant to a trading plan in accordance with Rules 10b5-1 and 10b-18 under the Securities Exchange Act, or by any combination of such methods. The manner, price, number and timing of share repurchases are subject to a variety of factors, including market conditions and applicable SEC rules. The share repurchase program does not require the purchase of any minimum number of shares, and, subject to SEC rules, purchases may be commenced or suspended at any time without prior notice. During the three and six-month periods ended June 30, 2025 and the year ended December 31, 2024, the Company did not repurchase any common stock pursuant to the share repurchase program.
Current wording
In September 2019, the Company initiated a share repurchase program that allows for the repurchase of up to an aggregate of $10.0 million of its common stock. As of September 30, 2025, approximately $4.7 million was remaining under the share repurchase program. Shares may be repurchased from time to time through privately negotiated transactions or open market transactions, pursuant to a trading plan in accordance with Rules 10b5-1 and 10b-18 under the Securities Exchange Act, or by any combination of such methods. The manner, price, number and timing of share repurchases are subject to a variety of factors, including market conditions and applicable SEC rules. The share repurchase program does not require the purchase of any minimum number of shares, and, subject to SEC rules, purchases may be commenced or suspended at any time without prior notice. During the three and nine-month periods ended September 30, 2025 and the year ended December 31, 2024, the Company did not repurchase any common stock pursuant to the share repurchase program.
Previous wording
In December 2023, the Company initiated a preferred stock repurchase program that allows for the repurchase of up to an aggregate of $50.0 million of its shares of preferred stock. Shares of preferred stock may be repurchased from time to time through privately negotiated transactions or open market transactions, pursuant to a trading plan in accordance with Rules 10b5-1 under the Exchange Act. The manner, price, number and timing of share repurchases are subject to a variety of factors, including market conditions and applicable SEC rules. The preferred stock repurchase program does not require the purchase of any minimum number of shares of preferred stock, and, subject to SEC rules, purchases may be commenced or suspended at any time without prior notice. During the three and six-month periods ended June 30, 2025, the Company did not repurchase any shares of its preferred stock pursuant to the repurchase program. During the year ended December 31, 2024, the Company repurchased 395,897 shares of its Series B Preferred Stock at a weighted average purchase price of $23.77 per share and paid aggregate brokerage commissions of approximately $11,900 on such repurchases. The difference between the consideration transferred and the carrying value of the preferred stock repurchased resulted in a gain attributable to common stockholders of $78,000 for the year ended December 31, 2024. Shares of preferred stock that are repurchased by the Company cease to be outstanding but remain authorized for future issuance.
Current wording
In December 2023, the Company initiated a preferred stock repurchase program that allows for the repurchase of up to an aggregate of $50.0 million of its shares of preferred stock. Shares of preferred stock may be repurchased from time to time through privately negotiated transactions or open market transactions, pursuant to a trading plan in accordance with Rules 10b5-1 under the Exchange Act. The manner, price, number and timing of share repurchases are subject to a variety of factors, including market conditions and applicable SEC rules. The preferred stock repurchase program does not require the purchase of any minimum number of shares of preferred stock, and, subject to SEC rules, purchases may be commenced or suspended at any time without prior notice. During the three and nine-month periods ended September 30, 2025, the Company did not repurchase any shares of its preferred stock pursuant to the repurchase program. During the year ended December 31, 2024, the Company repurchased 395,897 shares of its Series B Preferred Stock at a weighted average purchase price of $23.77 per share and paid aggregate brokerage commissions of approximately $11,900 on such repurchases. The difference between the consideration transferred and the carrying value of the preferred stock repurchased resulted in a gain attributable to common stockholders of $78,000 for the year ended December 31, 2024. Shares of preferred stock that are repurchased by the Company cease to be outstanding but remain authorized for future issuance.
Previous wording
To the extent the Federal Reserve takes future action to ease monetary policy by reducing its federal funds rate and/or further reduce the speed at which it is decreasing its balance sheet, it will generally lower interest rates across asset classes, including for Agency RMBS. Lower rates could reduce our funding costs and spur economic activity, increasing our net interest income. Higher prepayment could reduce the length of cash flows from the MSRs and accelerate the premium amortization on the RMBS portfolio. In the event that the Federal Reserve reverses course and tightens monetary policy in the future by increasing the federal funds rate and/or the rate of its run off of its balance sheet, these actions could result in higher interest rates, including for Agency RMBS, and reduce economic activity in the United States, as well as decrease spreads on interest rates, which can reduce our net interest income and increase our funding costs. They may also negatively impact our results as we have certain assets and liabilities that are sensitive to changes in interest rates. In addition, lower net interest income resulting from higher rates is partially offset by lower prepayments which extends the length of cash flows from the MSRs and slows the premium amortization on the RMBS portfolio.
Current wording
To the extent the Federal Reserve takes future action to ease monetary policy by reducing its federal funds rate and/or purchasing securities and increasing its balance sheet, it will generally lower interest rates across asset classes, including for Agency RMBS. Lower rates could reduce our funding costs and spur economic activity, increasing our net interest income. Higher prepayment could reduce the length of cash flows from the MSRs and accelerate the premium amortization on the RMBS portfolio. In the event that the Federal Reserve reverses course and tightens monetary policy in the future by increasing the federal funds rate and/or selling securities and reducing its balance sheet, these actions could result in higher interest rates, including for Agency RMBS, and reduce economic activity in the United States, as well as decrease spreads on interest rates, which can reduce our net interest income and increase our funding costs. They may also negatively impact our results as we have certain assets and liabilities that are sensitive to changes in interest rates. In addition, lower net interest income resulting from higher rates is partially offset by lower prepayments which extends the length of cash flows from the MSRs and slows the premium amortization on the RMBS portfolio.
Previous wording
Interest income for the six-month period ended June 30, 2025 was $29.6 million as compared to $26.4 million for the six-month period ended June 30, 2024. The increase of $3.2 million in interest income was due to purchases of new securities as well as replacing lower yielding securities with higher yielding securities.
Current wording
Interest income for the nine-month period ended September 30, 2025 was $45.3 million as compared to $40.7 million for the nine-month period ended September 30, 2024. The increase of $4.6 million in interest income was due to purchases of new securities as well as replacing lower yielding securities with higher yielding securities.
Previous wording
Interest expense for the three-month period ended June 30, 2025 was $12.2 million as compared to $12.6 million for the three-month period ended March 31, 2025. The decrease of $0.4 million in interest expense was due to changes in the Company’s leverage.
Current wording
Interest expense for the three-month period ended September 30, 2025 was $12.3 million as compared to $12.2 million for the three-month period ended June 30, 2025. The change in interest expense was nominal.
Previous wording
Interest expense for the six-month period ended June 30, 2025 was $24.8 million as compared to $27.2 million for the six-month period ended June 30, 2024. The decrease of $2.4 million in interest expense was due to a decrease in financing rates combined with a decrease in notes payable.
Current wording
Interest expense for the nine-month period ended September 30, 2025 was $37.2 million as compared to $41.4 million for the nine-month period ended September 30, 2024. The decrease of $4.2 million in interest expense was due to a decrease in financing rates combined with a decrease in notes payable.
Previous wording
Servicing fee income for the three-month period ended June 30, 2025 was $10.9 million as compared to $11.0 million for the three-month period ended March 31, 2025. The nominal decrease in servicing fee income was due to changes in the size of the portfolio.
Current wording
Servicing fee income for the three-month period ended September 30, 2025 was $10.8 million as compared to $10.9 million for the three-month period ended June 30, 2025. The nominal decrease in servicing fee income was due to changes in the size of the portfolio.
Previous wording
Servicing fee income for the six-month period ended June 30, 2025 was $21.9 million as compared to $25.2 million for the six-month period ended June 30, 2024. The decrease of $3.3 million in servicing fee income was due to changes in the size of the portfolio.
Current wording
Servicing fee income for the nine-month period ended September 30, 2025 was $32.7 million as compared to $36.9 million for the nine-month period ended September 30, 2024. The decrease of $4.2 million in servicing fee income was due to changes in the size of the portfolio.
Previous wording
Servicing costs for the three-month period ended June 30, 2025 were $2.0 million as compared to $2.5 million for the three-month period ended March 31, 2025. The decrease of $0.5 million in servicing costs was due to changes in the size of the portfolio.
Current wording
Servicing costs for the three-month period ended September 30, 2025 were $2.3 million as compared to $2.0 million for the three-month period ended June 30, 2025. The increase of $300,000 in servicing costs was due to a reimbursement of deboarding fees incurred in the second quarter.
Previous wording
Servicing costs for the six-month period ended June 30, 2025 were $4.5 million as compared to $6.1 million for the six-month period ended June 30, 2024. The decrease of $1.6 million in servicing costs was due to changes in the size of the portfolio.
Current wording
Servicing costs for the nine-month period ended September 30, 2025 were $6.8 million as compared to $9.3 million for the nine-month period ended September 30, 2024. The decrease of $2.5 million in servicing costs was due to changes in the size of the portfolio and a one-time loan level interest adjustments and deboarding fees related to the MSR sale incurred during the nine-month period ended September 30, 2024.
Previous wording
Realized loss on RMBS for the three-month period ended June 30, 2025 was approximately $2.1 million as compared to $4.0 million for the three-month period ended March 31, 2025. The decrease of $1.9 million in realized loss on RMBS was due to the timing and volume of RMBS sales.
Current wording
Realized loss on RMBS for the three-month period ended September 30, 2025 was $0 as compared to $2.1 million for the three-month period ended June 30, 2025. The decrease of $2.1 million in realized loss on RMBS was due to the timing and volume of RMBS sales.
Previous wording
Realized loss on RMBS for the six-month period ended June 30, 2025 was approximately $6.0 million as compared to $1.9 million for the six-month period ended June 30, 2024. The increase of $4.1 million in realized loss on RMBS was due to the timing and volume of RMBS sales.
Current wording
Realized loss on RMBS for the nine-month period ended September 30, 2025 was approximately $6.0 million as compared to $5.5 million for the nine-month period ended September 30, 2024. The increase of $0.5 million in realized loss on RMBS was due to the timing and volume of RMBS sales.
Previous wording
Realized gain on investments in MSRs for the six-month period ended June 30, 2025 was approximately $0 as compared to $0.7 million for the six-month period ended June 30, 2024. The decrease of $0.7 million in realized gain on MSRs was because no MSRs were sold during the six-month period ended June 30, 2025.
Current wording
Realized gain on investments in MSRs for the nine-month period ended September 30, 2025 was approximately $0 as compared to $0.5 million for the nine-month period ended September 30, 2024. The decrease of $0.5 million in realized gain on MSRs was because no MSRs were sold during the nine-month period ended September 30, 2025.
Previous wording
Realized gain on derivatives for the three-month period ended June 30, 2025 was approximately $14.8 million as compared to $4.6 million for the three-month period ended March 31, 2025. The increase of $10.2 million in realized gain on derivatives was substantially comprised of an increase of $7.3 million in gains on TBAs and an increase of $5.9 million in gain on U.S. Treasury futures offset by an increase of $1.2 million in losses on interest rate swaps and a decrease of $1.9 million in interest rate swaps periodic interest income due to changes in interest rates as well as composition of derivatives.
Current wording
Realized loss on derivatives for the three-month period ended September 30, 2025 was approximately $10.5 million as compared to a realized gain of $14.8 million for the three-month period ended June 30, 2025. The decrease of $25.3 million in realized gain on derivatives was substantially comprised of an decrease of $21.0 million in gains on TBAs and an decrease of $5.6 million in gain on U.S. Treasury futures offset by an decrease of $1.2 million in losses on interest rate swaps and an increase of $0.1 million in interest rate swaps periodic interest income due to changes in interest rates as well as composition of derivatives.
Previous wording
Realized gain on derivatives for the six-month period ended June 30, 2025 was approximately $19.5 million as compared to $15.7 million for the six-month period ended June 30, 2024. The increase of $3.8 million in realized gain on derivatives was substantially comprised of an increase of $7.8 million in gains on TBAs and an increase of $7.3 million in gains on U.S. Treasury futures offset by an increase of $5.5 million in losses on interest rate swaps and a decrease of $5.9 million in interest rate swaps periodic interest income due to changes in interest rates as well as composition of derivatives.
Current wording
Realized gain on derivatives for the nine-month period ended September 30, 2025 was approximately $9.0 million as compared to $7.7 million for the nine-month period ended September 30, 2024. The increase of $1.3 million in realized gain on derivatives was substantially comprised of a decrease of $12.4 million in losses on TBAs and an increase of $4.4 million in gains on U.S. Treasury futures offset by a decrease of $5.5 million in gains on interest rate swaps and a decrease of $10.0 million in interest rate swaps periodic interest income due to changes in interest rates as well as composition of derivatives.
Previous wording
Unrealized gain on RMBS measured at fair value through earnings for the three-month period ended June 30, 2025 was $3.5 million as compared to $14.8 million for the three-month period ended March 31, 2025. The decrease of $11.3 million in unrealized gain on RMBS measured at fair value through earnings was a result of changes in interest rates combined with spread widening.
Current wording
Unrealized gain on RMBS measured at fair value through earnings for the three-month period ended September 30, 2025 was $10.7 million as compared to $3.5 million for the three-month period ended June 30, 2025. The increase of $7.2 million in unrealized gain on RMBS measured at fair value through earnings was a result of drop in interest rates during the period combined with spread tightening.
Previous wording
Unrealized gain on RMBS measured at fair value through earnings for the six-month period ended June 30, 2025 was $18.3 million as compared to a loss of $12.8 million for the six-month period ended June 30, 2024. The increase of $31.1 million in unrealized gain on RMBS measured at fair value through earnings was due to a drop in interest rates during the period.
Current wording
Unrealized gain on RMBS measured at fair value through earnings for the nine-month period ended September 30, 2025 was $29.0 million as compared to $12.2 million for the nine-month period ended September 30, 2024. The increase of $16.8 million in unrealized gain on RMBS measured at fair value through earnings was due to a drop in interest rates during the period combined with spread tightening.
Previous wording
Unrealized loss on derivatives for the three-month period ended June 30, 2025 was approximately $19.1 million as compared to $22.7 million for the three-month period ended March 31, 2025. The decrease of $3.6 million in unrealized loss on derivatives was primarily due to changes in interest rates and the composition of our derivatives relative to the prior period.
Current wording
Unrealized gain on derivatives for the three-month period ended September 30, 2025 was approximately $2.5 million as compared to an unrealized loss of $19.1 million for the three-month period ended June 30, 2025. The decrease of $21.6 million in unrealized loss on derivatives was primarily due to changes in interest rates and the composition of our derivatives relative to the prior period.
Previous wording
Unrealized loss on derivatives for the six-month period ended June 30, 2025 was approximately $41.9 million as compared to a gain of $9.3 million for the six-month period ended June 30, 2024. The increase of $51.2 million in unrealized loss on derivatives was primarily due to changes in interest rates and the composition of our derivatives relative to the prior period.
Current wording
Unrealized loss on derivatives for the nine-month period ended September 30, 2025 was approximately $39.4 million as compared to $12.0 million for the nine-month period ended September 30, 2024. The increase of $27.4 million in unrealized loss on derivatives was primarily due to changes in interest rates and the composition of our derivatives relative to the prior period.
Previous wording
Unrealized loss on our investments in Servicing Related Assets for the three-month period ended June 30, 2025 was approximately $2.7 million as compared to $6.3 million for the three-month period ended March 31, 2025. The decrease of $3.6 million in unrealized loss on our investments in Servicing Related Assets was primarily due to changes in valuation inputs or assumptions and paydown of underlying loans.
Current wording
Unrealized loss on our investments in Servicing Related Assets for the three-month period ended September 30, 2025 was approximately $5.9 million as compared to $2.7 million for the three-month period ended June 30, 2025. The increase of $3.2 million in unrealized loss on our investments in Servicing Related Assets was primarily due to changes in valuation inputs or assumptions and paydown of underlying loans.
Previous wording
Unrealized loss on our investments in Servicing Related Assets for the six-month period ended June 30, 2025 was approximately $9.1 million as compared to $6.6 million for the six-month period ended June 30, 2024. The increase of $2.5 million in unrealized loss on our investments in Servicing Related Assets was primarily due to changes in valuation inputs or assumptions and paydown of underlying loans.
Current wording
Unrealized loss on our investments in Servicing Related Assets for the nine-month period ended September 30, 2025 was approximately $15.0 million as compared to $14.0 million for the nine-month period ended September 30, 2024. The increase of $1.0 million in unrealized loss on our investments in Servicing Related Assets was primarily due to changes in valuation inputs or assumptions and paydown of underlying loans.
Previous wording
General and administrative expense was $1.9 million for the three-month period ended June 30, 2025 as compared to $2.1 million for the three-month period ended March 31, 2025. The decrease of $0.2 million in general and administrative expense was due to a decrease in professional fees.
Current wording
General and administrative expense was $2.2 million for the three-month period ended September 30, 2025 as compared to $1.9 million for the three-month period ended June 30, 2025. The increase of $0.3 million in general and administrative expense was due to an increase in professional fees.
Previous wording
General and administrative expense was $4.0 million for six-month period ended June 30, 2025 as compared to $4.9 million for the six-month period ended June 30, 2024. The decrease of $0.9 million in general and administrative expense was due to a decrease in professional fees related to the Internalization.
Current wording
General and administrative expense was $6.2 million for nine-month period ended September 30, 2025 as compared to $8.1 million for the nine-month period ended September 30, 2024. The decrease of $1.9 million in general and administrative expense was due to a decrease in professional fees related to the Internalization.
Previous wording
Compensation and benefits expense for the three-month period ended June 30, 2025 was $1.4 million as compared to $1.7 million for the three-month period ended March 31, 2025. The decrease of $0.3 million in compensation and benefits was due to timing of bonus payments.
Current wording
Compensation and benefits expense for the three-month period ended September 30, 2025 was $1.6 million as compared to $1.4 million for the three-month period ended June 30, 2025. The increase of $0.2 million in compensation and benefits was due to personnel changes.
Previous wording
Compensation and benefits expense for the six-month period ended June 30, 2025 was $3.1 million as compared to $0.3 million for the six-month period ended June 30, 2024. The increase of $2.8 million in compensation and benefits was because the Company started operating as an internally managed Company effective November 14, 2024.
Current wording
Compensation and benefits expense for the nine-month period ended September 30, 2025 was $4.7 million as compared to $0.5 million for the nine-month period ended September 30, 2024. The increase of $4.2 million in compensation and benefits was because the Company started operating as an internally managed Company effective November 14, 2024.
Previous wording
Net income allocated to noncontrolling interests in the Operating Partnership, which are LTIP-OP Units owned by directors, officers and employees of the Company and by certain individuals who provided services to us through the Manager prior to the Internalization, represented approximately 2.2% and 1.9% of net income for the three-month periods ended June 30, 2025 and March 31, 2025, respectively and 1.8% and 2.0% of net income for the six month periods ended June 30, 2025 and June 30, 2024 respectively.
Current wording
Net income allocated to noncontrolling interests in the Operating Partnership, which are LTIP-OP Units owned by directors, officers and employees of the Company and by certain individuals who provided services to us through the Manager prior to the Internalization, represented approximately 1.8% and 2.2% of net income for the three-month periods ended September 30, 2025 and June 30, 2025, respectively and 1.8% and 2.0% of net income for the nine-month periods ended September 30, 2025 and September 30, 2024 respectively.
Previous wording
Our GAAP equity changes as the values of our RMBS are marked to market each quarter, among other factors. The primary causes of mark to market changes are changes in interest rates and nominal spreads. During the three-month period ended June 30, 2025, a small unrealized gain on our available-for-sale RMBS was a result of changes in interest rates combined with spread widening. During the three-month period ended March 31, 2025 and the six-month period ended June 30, 2025, a drop in interest rates caused a net unrealized gain on our available-for-sale RMBS. During the six-month period ended June 30, 2024, a rise in interest rates combined with marginal widening of credit spreads caused a net unrealized loss on our available-for-sale RMBS. Unrealized gain (loss) on available-for-sale RMBS is recorded in accumulated other comprehensive income (loss).
Current wording
Our GAAP equity changes as the values of our RMBS are marked to market each quarter, among other factors. The primary causes of mark to market changes are changes in interest rates and nominal spreads. During the three-month period ended September 30, 2025, an unrealized gain on our available-for-sale RMBS was a result of changes in interest rates combined with spread tightening. During the three-month period ended June 30, 2025, a small unrealized gain on our available-for-sale RMBS was a result of changes in interest rates combined with spread widening. For the nine-month periods ended September 30, 2025 and September 30, 2024, a drop in interest rates caused a net unrealized gain on our available-for-sale RMBS. Unrealized gain (loss) on available-for-sale RMBS is recorded in accumulated other comprehensive income (loss).
Previous wording
EAD for the three-month period ended June 30, 2025 as compared to the three-month period ended March 31, 2025 decreased by approximately $2.1 million, or $0.07 per average common share primarily due to a decrease in interest rate swap periodic interest income, some of which was offset by a decrease in expenses.
Current wording
EAD for the three-month period ended September 30, 2025 as compared to the three-month period ended June 30, 2025 increased by approximately $0.1 million, primarily due to an increase in interest income, some of which was offset by an increase in expenses. EAD per average common share for the three-month period ended September 30, 2025 as compared to the three-month period ended June 30, 2025 decreased by approximately $0.01 due to an increase in common share count resulting from issuances under the Common Stock ATM Program.
Previous wording
EAD for the six-month period ended June 30, 2025 as compared to the six-month period ended June 30, 2024 increased by approximately $2.3 million, or $0.06 per average common share primarily due to a decrease in borrowing costs as well as Internalization expenses.
Current wording
EAD for the nine-month period ended September 30, 2025 as compared to the nine-month period ended September 30, 2024 increased by approximately $3.1 million, or $.06 per average common share primarily due to a decrease in borrowing costs as well as Internalization expenses.
Previous wording
Aurora’s portfolio of Fannie Mae and Freddie Mac MSRs have an aggregate UPB of approximately $16.6 billion as of June 30, 2025.
Current wording
Aurora’s portfolio of Fannie Mae and Freddie Mac MSRs have an aggregate UPB of approximately $16.2 billion as of September 30, 2025.
Previous wording
Our primary uses of funds are the payment of interest, management fees, outstanding commitments, other operating expenses, investments in new or replacement assets, margin calls and the repayment of borrowings, as well as dividends. Although we continue to maintain a higher level of unrestricted cash than prior to the pandemic, we expect to invest more of that unrestricted cash in our targeted assets if normalization of the economy continues. We may also use capital resources to repurchase additional shares of common stock under our stock repurchase program when we believe such repurchases are appropriate and/or the stock is trading at a significant discount to net asset value. We seek to maintain adequate cash reserves and other sources of available liquidity to meet any margin calls resulting from decreases in value related to a reasonably possible (in the opinion of management) change in interest rates.
Current wording
Our primary uses of funds are the payment of interest, outstanding commitments, operating expenses, investments in new or replacement assets, margin calls and the repayment of borrowings, as well as dividends. Although we continue to maintain a higher level of unrestricted cash than prior to the pandemic, we expect to invest more of that unrestricted cash in our targeted assets if normalization of the economy continues. We may also use capital resources to repurchase additional shares of common stock under our stock repurchase program when we believe such repurchases are appropriate and/or the stock is trading at a significant discount to net asset value. We seek to maintain adequate cash reserves and other sources of available liquidity to meet any margin calls resulting from decreases in value related to a reasonably possible (in the opinion of management) change in interest rates.
Previous wording
As of June 30, 2025, we had repurchase agreements with 35 counterparties and approximately $1,072.3 million of outstanding repurchase agreement borrowings from 13 of those counterparties, which were used to finance RMBS. As of June 30, 2025, our exposure (defined as the amount of cash and securities pledged as collateral, less the borrowing under the repurchase agreement) to any of the counterparties under the repurchase agreements did not exceed five percent of the Company’s equity. Under these agreements, which are uncommitted facilities, we sell a security to a counterparty and concurrently agree to repurchase the same security at a later date at the same price that we initially sold the security plus the interest charged. The sale price represents financing proceeds and the difference between the sale and repurchase prices represents interest on the financing. The price at which the security is sold generally represents the market value of the security less a discount or “haircut.” The weighted average haircut on our repurchase debt at June 30, 2025 was approximately 4.3%. During the term of the repurchase transaction, which can be as short as a few days, the counterparty holds the security and posts margin as collateral. The counterparty monitors and calculates what it estimates to be the value of the collateral during the term of the transaction. If this value declines by more than a de minimis threshold, the counterparty requires us to post additional collateral (or “margin”) in order to maintain the initial haircut on the collateral. This margin is typically required to be posted in the form of cash and cash equivalents. Furthermore, we are, from time to time, a party to derivative agreements or financing arrangements that may be subject to margin calls based on the value of such instruments.
Current wording
As of September 30, 2025, we had repurchase agreements with multiple counterparties and approximately $1,107.1 million of outstanding repurchase agreement borrowings from 14 of those counterparties, which were used to finance RMBS. As of September 30, 2025, our exposure (defined as the amount of cash and securities pledged as collateral, less the borrowing under the repurchase agreement) to any of the counterparties under the repurchase agreements did not exceed five percent of the Company’s equity. Under these agreements, which are uncommitted facilities, we sell a security to a counterparty and concurrently agree to repurchase the same security at a later date at the same price that we initially sold the security plus the interest charged. The sale price represents financing proceeds and the difference between the sale and repurchase prices represents interest on the financing. The price at which the security is sold generally represents the market value of the security less a discount or “haircut.” The weighted average haircut on our repurchase debt at September 30, 2025 was approximately 4.4%. During the term of the repurchase transaction, which can be as short as a few days, the counterparty holds the security and posts margin as collateral. The counterparty monitors and calculates what it estimates to be the value of the collateral during the term of the transaction. If this value declines by more than a de minimis threshold, the counterparty requires us to post additional collateral (or “margin”) in order to maintain the initial haircut on the collateral. This margin is typically required to be posted in the form of cash and cash equivalents. Furthermore, we are, from time to time, a party to derivative agreements or financing arrangements that may be subject to margin calls based on the value of such instruments.
Previous wording
The decrease in the Company’s borrowings under its repurchase agreements as of June 30, 2025 as compared to December 31, 2024 was primarily due to the sale of RMBS, a large portion of which are financed through repurchase agreements.
Current wording
The increase in the Company’s borrowings under its repurchase agreements as of September 30, 2025 as compared to December 31, 2024 was primarily due to the purchase of RMBS, a large portion of which are financed through repurchase agreements.
Previous wording
These short-term borrowings were used to finance certain of our investments in RMBS. The RMBS repurchase agreements are guaranteed by the Company. The weighted average difference between the market value of the assets and the face amount of available financing for the RMBS repurchase agreements, or the haircut, was 4.3% as of June 30, 2025 and 4.4% as of December 31, 2024. The following tables provide additional information regarding borrowings under our repurchase agreements (dollars in thousands):
Current wording
These short-term borrowings were used to finance certain of our investments in RMBS. The RMBS repurchase agreements are guaranteed by the Company. The weighted average difference between the market value of the assets and the face amount of available financing for the RMBS repurchase agreements, or the haircut, was 4.4% as of September 30, 2025 and 4.4% as of December 31, 2024. The following tables provide additional information regarding borrowings under our repurchase agreements (dollars in thousands):
Previous wording
The amount of collateral as of June 30, 2025 and December 31, 2024, including cash, was $1,133.2 million and $1,123.7 million, respectively.
Current wording
The amount of collateral as of September 30, 2025 and December 31, 2024, including cash, was $1,154.7 million and $1,123.7 million, respectively.
Previous wording
The weighted average term to maturity of our borrowings under repurchase agreements as of June 30, 2025 and December 31, 2024 was 26 days and 18 days, respectively.
Current wording
The weighted average term to maturity of our borrowings under repurchase agreements as of September 30, 2025 and December 31, 2024 was 27 days and 18 days, respectively.
Previous wording
As of June 30, 2025, the Company had two separate MSR financing facilities: (i) the Freddie Mac MSR Revolver, which is a revolving credit facility for up to $100.0 million that is secured by all Freddie Mac MSRs owned by Aurora; and (ii) the Fannie Mae MSR Revolving Facility, which is a revolving credit facility for up to $150.0 million, that is secured by all Fannie Mae MSRs owned by Aurora. Both financing facilities are available for MSRs as well as certain servicing related advances associated with MSRs.
Current wording
As of September 30, 2025, the Company had two separate MSR financing facilities: (i) the Freddie Mac MSR Revolver, which is a revolving credit facility for up to $100.0 million that is secured by all Freddie Mac MSRs owned by Aurora; and (ii) the Fannie Mae MSR Revolving Facility, which is a revolving credit facility for up to $100.0 million, that is secured by all Fannie Mae MSRs owned by Aurora. Both financing facilities are available for MSRs as well as certain servicing related advances associated with MSRs.
Previous wording
Freddie Mac MSR Revolver. The Company, Aurora and QRS V (collectively with Aurora and the Company, the “Borrowers”) have entered into a $25.0 million revolving credit facility (the “Freddie Mac MSR Revolver”) pursuant to which Aurora pledged all of its existing and future MSRs on loans owned or securitized by Freddie Mac. On April 2, 2019, Aurora and QRS V entered into an amendment that increased the maximum amount of the Freddie Mac MSR Revolver to $100.0 million. In June 2025, the Borrowers entered into an amendment that extended the revolving period for an additional 364 days with the Borrowers’ option for two renewals for similar terms followed by a one-year term out feature with a 24-month amortization schedule. Amounts borrowed bear interest at a weighted average borrowing rate of 7.2%. At June 30, 2025 and December 31, 2024, approximately $56.5 million was outstanding under the Freddie Mac MSR Revolver.
Current wording
Freddie Mac MSR Revolver. The Company, Aurora and QRS V (collectively with Aurora and the Company, the “Borrowers”) have entered into a $25.0 million revolving credit facility (the “Freddie Mac MSR Revolver”) pursuant to which Aurora pledged all of its existing and future MSRs on loans owned or securitized by Freddie Mac. On April 2, 2019, Aurora and QRS V entered into an amendment that increased the maximum amount of the Freddie Mac MSR Revolver to $100.0 million. In June 2025, the Borrowers entered into an amendment that extended the revolving period for an additional 364 days with the Borrowers’ option for two renewals for similar terms followed by a one-year term out feature with a 24-month amortization schedule. Amounts borrowed bear interest at a weighted average borrowing rate of 7.2%. At September 30, 2025 and December 31, 2024, approximately $56.0 million and $56.5 million, respectively was outstanding under the Freddie Mac MSR Revolver.
Showing the first 40 of 45 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
During the three-month periods ended September 30, 2025 and June 30, 2025, our operating activities used cash of approximately $2.4 million and provided cash of approximately $12.5 million, respectively and our investing activities used cash of approximately $24.8 million and $19.0 million, respectively.