CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING INFORMATION
Cherry Hill Mortgage Investment Corporation (together with its consolidated subsidiaries, the “Company”, “we”, “our” or “us”) makes forward-looking statements in this Quarterly Report on Form 10-Q within the meaning of the Private Securities Litigation Reform Act of 1995 (as set forth in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). For these statements, the Company claims the protections of the safe harbor for forward-looking statements contained in such Sections. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. These forward-looking statements include information about possible or assumed future results of the Company’s business, financial condition, liquidity, results of operations, plans and objectives. When the Company uses the words “believe”, “expect”, “anticipate”, “estimate”, “plan”, “continue”, “intend”, “should”, “could”, “would”, “may”, “potential” or the negative of these terms or other comparable terminology, the Company intends to identify forward-looking statements. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ materially from our beliefs, expectations, estimates and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Statements regarding the following subjects, among others, may be forward-looking:
| • | the Company’s investment objectives and business strategy; |
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| • | the Company’s ability to internally manage itself following the termination of the management agreement with Cherry Hill Mortgage Management, LLC (“CHMM” or “Manager”), its former external manager, in November 2024; |
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| • | the Company’s exposure to legal claims related to the termination of the management agreement with CHMM in November 2024 without the payment of a termination fee; |
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| • | the Company’s ability to raise capital through the sale of its equity and debt securities and to invest the net proceeds of any such offering in the target assets, if any, identified at the time of the offering; |
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| • | the Company’s ability to obtain future financing arrangements and refinance existing financing arrangements as they mature; |
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| • | the Company’s expected leverage; |
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| • | the Company’s expected investments and the timing thereof; |
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| • | the Company’s ability to acquire Servicing Related Assets and mortgage and real estate-related securities; |
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| • | the Company’s ability to make distributions to holders of the Company’s common and preferred stock; |
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| • | the Company’s ability to compete in the marketplace; |
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| • | the Company’s ability to hedge interest rate risk and prepayment risk associated with its assets; |
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| • | market, industry and economic trends; |
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| • | recent market developments and actions taken and to be taken by the U.S. Government, the U.S. Treasury, the Board of Governors of the Federal Reserve System, Fannie Mae, Freddie Mac, Ginnie Mae and the U.S. Securities and Exchange Commission (“SEC”); |
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| • | mortgage loan modification programs and future legislative actions; |
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| • | the Federal Reserve’s potential changes in interest rates; |
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| • | the Company’s ability to qualify and maintain qualification as a REIT under the Code and limitations on the Company’s business due to compliance with requirements for maintaining its qualification as a REIT under the Code; |
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| • | the Company’s ability to maintain an exception from the definitions of “investment company” under the Investment Company Act of 1940, as amended (the “Investment Company Act”), or otherwise not fall within those definitions; |
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| • | projected capital and operating expenditures; |
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| • | the on-going Federal government shut-down and any potential impact on mortgage borrowers or the mortgage industry; |
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| • | availability of qualified personnel; and |
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| • | projected prepayment and/or default rates. |
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The Company’s beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to it or are within its control. If any such change occurs, the Company’s business, financial condition, liquidity and results of operations may vary materially from those expressed in, or implied by, the Company’s forward-looking statements. Important factors, among others, that may cause the Company’s actual results, performance, liquidity or achievements to differ materially from those expressed or implied by the Company’s forward-looking statements include:
| • | the factors discussed under “Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Quarterly Report on Form 10-Q and “Part I, Item 1. Business” and “Part I, Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024; |
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| • | general volatility of the capital markets; |
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| • | deterioration in domestic and global economic conditions or failure of conditions to improve as anticipated; |
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| • | regulatory and legal developments; |
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| • | inflationary trends could result in further interest rate increases or sustained higher interest rates for longer than expected periods of time, which could lead to increased market volatility; |
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| • | changes in the Company’s investment objectives and business strategy; |
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| • | availability, terms and deployment of capital; |
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| • | availability of suitable investment opportunities; |
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| • | the Company’s ability to operate its licensed mortgage servicing subsidiary and oversee the activities of such subsidiary; |
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| • | the Company’s ability to manage various operational and regulatory risks associated with its business; |
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| • | additional costs resulting from the termination of the management agreement with CHMM; |
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| • | changes in the Company’s assets, interest rates or the general economy; |
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| • | increased rates of default and/or decreased recovery rates on the Company’s investments, including as a result of the effects of more severe weather and changes in traditional weather patterns; |
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| • | changes in interest rates, interest rate spreads, the yield curve, prepayment rates or recapture rates; |
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| • | limitations on the Company’s business due to compliance with requirements for maintaining its qualification as a REIT under the Code and the Company’s exception from the definitions of “investment company” under the Investment Company Act (or of otherwise not falling within those definitions); |
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| • | the degree and nature of the Company’s competition, including competition for the residential mortgage assets in which the Company invests; and |
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| • | other risks associated with acquiring, investing in and managing residential mortgage assets. |
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Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. These forward-looking statements apply only as of the date of this Quarterly Report on Form 10-Q. Except as otherwise may be required by law, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
PART I. FINANCIAL INFORMATION
