Company: CHMI-PB
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001140361-25-017536
Chunk: 26

Company: Cherry Hill Mortgage Investment Corp
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 2
Chunk 26
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, 2023, RoundPoint ceased being a wholly owned subsidiary of Freedom Mortgage when it was acquired by an unaffiliated entity, Matrix Financial Services Corporation. The agreements have varying
            initial terms (three years, for Freedom Mortgage, and two years for the other three sub-servicers) and are subject to automatic renewal for additional terms equal to the applicable initial term unless either party chooses not to renew. Each
            agreement may be terminated without cause by either party by giving notice as specified in the agreement. If an agreement is not renewed by the Company or terminated by the Company without cause, de-boarding fees will be due to the subservicer.
            Under each agreement, the subservicer agrees to service the applicable mortgage loans in accordance with applicable law and the requirements of the applicable Agency and the Company pays customary fees to the applicable subservicer for
            specified services. All expiring agreements to date have been automatically renewed for the extended terms.

          Inflation

          Substantially all of our assets and liabilities are financial in nature. As a result, interest rates and other factors affect our performance more so than inflation,
            although inflation rates can often have a meaningful influence over the direction of interest rates. As discussed above under “—Effects of Federal Reserve Policy on the Company”, Federal Reserve Chair Jerome Powell has 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. Since December 2024,  the Federal Reserve
            had been reducing its federal funds rate target and otherwise easing monetary policy based on improved inflation data. To the extent the Federal Reserve continues to ease monetary policy, its actions may decrease interest rates across asset
            classes and our interest expense and, thereby, increase our interest income. If the Federal Reserve decides to tighten monetary policy however, it may increase our interest expense, which expense may not be fully offset by any resulting
            increase in our interest income. Furthermore, our financial statements are prepared in accordance with GAAP and our distributions are determined by our board of directors primarily based on our REIT taxable income, and, in each case, our
            activities and balance sheet are measured with reference to historical cost and/or fair market value without considering inflation.

            68

    Item 3.

                  Quantitative and Qualitative Disclosures about Market Risk

          We seek to manage our risks related to the credit quality of our assets, interest rates, liquidity