Company: CIMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001628280-25-006426
Chunk: 218

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 1A
Chunk 218
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-qualified mortgages, or Non-QM, investor loans and securitizes them under its loan securitization program. The business purpose loans are loans to businesses that are secured by real property which will be renovated by the borrower. The business purpose loans tend to be short duration, often less than one year, and generally the coupon rate is higher than residential mortgage loans.At December 31, 2024 and December 31, 2023, all Loans held for investment are carried at fair value. See Note 5 for a discussion on how the Company determines the fair values of the Loans held for investment. As changes in the fair value of these loans are reflected in earnings, the Company does not estimate or record a loan loss provision. The total amortized cost of the Company's Loans held for investment was $11.4 billion and $11.8 billion as of December 31, 2024 and December 31, 2023, respectively. The total unpaid principal balance of the Company's Loans held for investment was $11.7 billion and $12.0 billion as of December 31, 2024 and December 31, 2023, respectively.The following table provides a summary of the changes in the carrying value of Loans held for investment at fair value at December 31, 2024 and December 31, 2023:For the Year EndedFor the Year EndedDecember 31, 2024December 31, 2023 (dollars in thousands)Balance, beginning of period$11,397,046 $11,359,236 Purchases1,062,699 1,421,537 Principal paydowns(1,309,843)(1,417,787)Sales and settlements(116,652)(246)Net periodic accretion (amortization)(39,236)(51,005)Change in fair value202,664 85,311 Balance, end of period$11,196,678 $11,397,046 The primary cause of the change in fair value is due to market demand, interest rates and changes in credit risk of mortgage loans. The Company did not retain any beneficial interests on loan sales during the years ended December 31, 2024 and December 31, 2023, respectively.

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Residential mortgage loansThe loan portfolio for all residential mortgages were originated during the following periods:Origination YearDecember 31, 2024December