Company: CHMI-PB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001140361-25-040783
Chunk: 6

Company: Cherry Hill Mortgage Investment Corp
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 6
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 December 31, 2024, the Company repurchased 395,897 shares of its Series B Preferred Stock at a weighted average purchase price of $23.77 per share and paid aggregate brokerage commissions of approximately $11,900 on
          such repurchases. The difference between the consideration transferred and the carrying value of the preferred stock repurchased resulted in a gain attributable to common stockholders of $78,000 for the year ended December 31, 2024. Shares of
          preferred stock that are repurchased by the Company cease to be outstanding but remain authorized for future issuance.

Effects of Federal Reserve Policy on the Company

Since September 2025, the Federal Reserve has reduced its federal funds rate target by 25 basis points to a range of 3.75% to 4.00% due to slowing job growth and increased unemployment. Even
          though inflation remains above its 2 percent target, the Federal Reserve has determined that in evaluating its dual mandate the downside risks to employment have risen. 

          In addition, at its October meeting, the Federal Reserve announced that it will cease reducing its balance sheet, which began in 2022, effective on December 1, 2025. Since 2022, the Federal Reserve has allowed a set
            amount of Treasury securities and Agency RMBS on its balance sheet to roll off each month without reinvestment. Currently, the Federal Reserve's monthly redemption cap on U.S. Treasury Securities is $5 billion and its redemption cap on agency
            debt/MBS is $35 billion with excess principal payments reinvested in U.S. Treasury securities. Despite these actions to ease monetary policy, the future course of monetary policy is uncertain. Federal Reserve Chairman Jerome Powell has said
            that future rate cuts are not a foregone conclusion and will depend on future economic data, including measures of inflation, and financial and international developments.

To the extent the Federal Reserve takes future action to ease monetary policy by reducing its federal funds rate and/or purchasing securities and increasing its balance sheet, it will generally
          lower interest rates across asset classes, including for Agency RMBS. Lower rates could reduce our funding costs and spur economic activity, increasing our net interest income. Higher prepayment could reduce the length of cash flows from the MSRs
          and accelerate the premium amortization on the RMBS portfolio. In the event that the Federal Reserve reverses course and tightens monetary policy in the future by increasing the federal funds rate and/or selling securities and reducing its
          balance sheet