Company: CIMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001628280-25-006426
Chunk: 271

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 1B
Chunk 271
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idity, enforceability, and counterparty risks, which could adversely affect our business and results of operations.

Risks Associated with Our Operations

•Through certain of our wholly owned subsidiaries we may from time to time engage in securitization transactions relating to residential mortgage loans, which may expose us to potentially material risks.

•Our ability to profitably execute future securitization transactions may be negatively impacted by adverse market conditions.

•Competition may affect our ability to source our target assets at attractive prices and have a material adverse effect on our business, financial condition and results of operations.

•The loss of any executive officer or key employee may materially adversely affect our business. 

•Risks related to servicers and other third parties, including their ability to perform their services at a high level and comply with applicable laws, and the use of third-party analytical models and data. 

•The expanding body of regulations and the investigations of servicers may increase their cost of compliance and the risks of noncompliance. 

•We are dependent on information technology and systems and their failure, including through cyber-attacks, could significantly disrupt our business.

Risks Related to Regulatory Matters, Accounting, and Our 1940 Act Exemption 

•Our business is subject to extensive regulation that may subject us to significant costs and compliance requirements, and there can be no assurance that we will satisfactorily comply with such regulations.

•There is no assurance we will be able to obtain various state licenses to purchase mortgage loans.

•Our GAAP financial results may not be an accurate indicator of taxable income and dividend distributions.

•Changes in accounting rules could impact us negatively.

•Loss of our 1940 Act exemption would negatively affect our share price, our ability to distribute dividends, and us generally. 

U.S. Federal Income Tax Risks and Risk Related to Our REIT Status

•Risks related to compliance with REIT requirements.

•Risks related to our qualification as a REIT and our election to qualify as a REIT.

•Distributions or gain on sale may be treated as unrelated business taxable income to tax-exempt investors.

•Classification of our securitizations or financing arrangements as a taxable mortgage pool could subject us or certain of our stockholders to increased taxation.

•Failure to make required distributions would subject us to tax, which would reduce the cash available for distribution to our stockholders.

•Our ownership of and relationship with our TRSs will be limited, and a failure to comply with the limits would jeopardize our REIT status