Company: CHMI-PB
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001140361-25-017536
Chunk: 23

Company: Cherry Hill Mortgage Investment Corp
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 2
Chunk 23
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          Repurchase Agreements

          As of March 31, 2025, we had repurchase agreements with 35 counterparties and approximately $1,049.9 million of outstanding repurchase agreement borrowings from 12 of those
            counterparties, which were used to finance RMBS. As of March 31, 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 March 31, 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.

          Set forth below is the average aggregate balance of borrowings under the Company’s repurchase agreements for each of the periods shown and the aggregate balance as of the
            end of each such period (dollars in thousands):

          Repurchase Agreement Average and Maximum Amounts

                  Quarter Ended

                  Average Monthly
                  Amount

                  Maximum Month-End 
                  Amount

                  Quarter Ending
                  Amount

                  March 31, 2025

                  $

                  1,047,203

                  $

                  1,049,867

                  $

                  1,049,867

                  December 31,