Company: CHMI-PB
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001140361-25-007454
Chunk: 31

Company: Cherry Hill Mortgage Investment Corp
Filing Date: 2025-03-06
Form: 10-K
Item: Item 5
Chunk 31
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 fee, the reimbursement of certain expenses and,
                      in certain circumstances, a termination fee. The management fee was an amount equal to 1.5% per annum of stockholders’ equity, adjusted as set forth in the Management Agreement, and calculated and payable quarterly in arrears. In
                      certain circumstances, we were required to pay CHMM a termination fee equal to three times the average annual management fee earned by CHMM during the two four-quarter periods ending as of the end of the most recently completed fiscal
                      quarter prior to the effective date of the termination. Such termination fee was required to be paid upon termination or non-renewal of the Management Agreement by us without cause or by CHMM if we materially breached the Management
                      Agreement. The Management Agreement was terminated without payment of any termination fee in connection with our consummation of an internalization event (as defined in the Management Agreement), effective as of November 14, 2024.

                    We paid all of our direct operating expenses, except those specifically required to be borne by CHMM under the Management Agreement. CHMM was responsible for all costs incident to the
                      performance of its duties under the Management Agreement. We believe that CHMM used the proceeds from its management fee in part to pay the Services Provider for services provided under the Services Agreement. Our officers received no
                      cash compensation directly from us. CHMM provided us with our officers. CHMM was entitled to be reimbursed for an agreed upon portion of the costs of the wages, salary and other benefits with respect to our CFO, and, prior to January
                      1, 2022, our general counsel, originally based on the percentages of their working time and efforts spent on matters related to the Company. The amount of the wages, salary and benefits reimbursed with respect to the officers CHMM
                      provided to us was subject to the approval of the compensation committee of our board of directors.

                    Subservicing Agreements

                    As of December 31, 2024, Aurora had four subservicing agreements in place, one of which is with Freedom Mortgage. Following the sale of the Ginnie Mae MSRs to Freedom Mortgage in June
                      2020, Freedom Mortgage continued to subservice certain loans that had been purchased from Ginnie Mae pools due to delinquency or default. Freedom Mortgage ceased subservicing these loans during 2021 because these loans and any related
                      advance claims had been rehabilitated or liquidated. One of the other subservicing