Company: CIMO
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001409493-25-000028
Chunk: 149

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 149
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ars in thousands)Interest income, Assets of consolidated VIEs$423,817 $436,950 Interest expense, Non-recourse liabilities of VIEs213,076 214,483 Net interest income$210,741 $222,467 Increase (decrease) in provision for credit losses$4,204 $1,760 Interest income from investment in MSR financing receivable$363 $— Servicing fees$17,693 $19,965 

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VIEs for Which the Company is Not the Primary BeneficiaryThe Company is not required to consolidate VIEs in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary. In such cases, the Company does not have both the power to direct the entities’ most significant activities, such as rights to replace the servicer without cause, and the obligation to absorb losses or right to receive benefits that could potentially be significant to the VIEs. The Company’s investments in these unconsolidated VIEs are carried in Non-Agency RMBS on the Consolidated Statements of Financial Condition and include senior and subordinated bonds issued by the VIEs. 

The fair value of the Company’s investments in each unconsolidated VIEs at September 30, 2025, ranged from less than $1 million to $22 million with an aggregate amount of $653 million. The fair value of the Company’s investments in each unconsolidated VIEs at December 31, 2024, ranged from less than $1 million to $21 million, with an aggregate amount of $835 million. The Company’s maximum exposure to loss from these unconsolidated VIEs was $626 million and $830 million at September 30, 2025 and December 31, 2024, respectively. The maximum exposure to loss was determined as the amortized cost of the unconsolidated VIE, which represents the purchase price of the investment adjusted by any unamortized premiums or discounts as of the reporting date. 

10. Interests in MSR Financing Receivables 

The Company does not hold the requisite licenses to purchase or hold MSRs directly. Therefore, the Company entered into purchase agreements to acquire base and excess servicing compensation rights, known as MSRs, associated with a $6.5 billion portfolio of mortgage loans from a licensed, GSE-approved residential mortgage loan servicer, which enables the Company to