Chimera Investment Corporation Sponsors Four Residential Mortgage Loan Securitizations Totaling $4.1
Billion
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.”
Other Information
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”).
Disclaimer
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.
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