NEW YORK--(BUSINESS WIRE)--On March 30, 2017, Chimera Investment Corporation (NYSE: CIM) announces that it closed four residential mortgage loans securitizations during the first quarter: $526 million CIM 2017-1; $331 million CIM 2017-2; $2.4 billion CIM 2017-3; and $830 million CIM 2017-4: collectively $4.1 billion securitizations of seasoned, performing, low-loan balance residential mortgage loans. In aggregate, Chimera sold $3.4 billion of securities in private placements to institutional investors and retained a $640 million interest in these securitizations. Chimera also retained the option to call the outstanding notes issued by each securitization at any time beginning in (i) January 2020 for CIM 2017-1, (ii) February 2020 for CIM 2017-2, and (iii) March 2021 for CIM 2017-3 and CIM 2017-4.
“We continue to execute upon our risk-retention securitized loan strategy by acquiring residential mortgage credit assets that offer attractive returns for our portfolio,” said Mohit Marria, Chief Investment Officer.
“Total securitization deal expenses are expected to be approximately $11 million for the first quarter of 2017, which will reduce first quarter core earnings,” said Rob Colligan, Chief Financial Officer. “We believe our investments in these securitizations will produce positive results in future quarters and the full run-rate of these investments will be reflected in the second quarter 2017.”
Chimera Investment Corporation invests in residential mortgage loans, residential mortgage-backed securities, real estate-related securities and various other asset classes. The Company’s principal business objective is to generate income from the spread between yields on its investments and its cost of borrowing and hedging activities. The Company is a Maryland corporation that has elected to be taxed as a real estate investment trust (“REIT”).
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among other things, those described in our Annual Report on Form 10-K for the year ended December 31, 2016, and any subsequent Quarterly Reports on Form 10-Q, under the caption “Risk Factors.” Factors that could cause actual results to differ include, but are not limited to: the state of credit markets and general economic conditions; changes in interest rates and the market value of our assets; the rates of default or decreased recovery on the mortgages underlying our target assets; the occurrence, extent and timing of credit losses within our portfolio; the credit risk in our underlying assets; declines in home prices; our ability to establish, adjust and maintain appropriate hedges for the risks in our portfolio; the availability and cost of our target assets; our ability to borrow to finance our assets and the associated costs; changes in the competitive landscape within our industry; our ability to manage various operational risks and costs associated with our business; interruptions in or impairments to our communications and information technology systems; our ability to acquire residential mortgage loans and successfully securitize the residential mortgage loans we acquire; our ability to oversee our third party sub-servicers; the impact of any deficiencies in the servicing or foreclosure practices of third parties and related delays in the foreclosure process; our exposure to legal and regulatory claims; legislative and regulatory actions affecting our business; the impact of new or modified government mortgage refinance or principal reduction programs; our ability to maintain our REIT qualification; and limitations imposed on our business due to our REIT status and our exempt status under the Investment Company Act of 1940.
Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chimera does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these and other risk factors is contained in Chimera’s most recent filings with the Securities and Exchange Commission (SEC). All subsequent written and oral forward-looking statements concerning Chimera or matters attributable to Chimera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.
Readers are advised that the financial information in this press release is based on company data available at the time of this presentation and, in certain circumstances, may not have been audited by the company’s independent auditors.