Chimera Investment Corporation (NYSE: CIM) recently announced the sponsorship of CIM 2025-I1, a $287.7 million securitization of residential mortgage investor loans. The securitization involved loans with a weighted average coupon of 7.9%, weighted average FICO scores of 748, and a loan-to-value (LTV) ratio of 64%.
In a private placement, securities issued by CIM 2025-I1, with an aggregate balance of approximately $275.7 million, were sold to institutional investors. These senior securities represented about 95.8% of the capital structure. Chimera retained subordinate interests in securities with an aggregate balance of approximately $11.9 million and certain interest-only securities.
Chimera also retained an option to call the securitized mortgage loans on the earlier of February 25, 2028, or when their unpaid principal balance is less than or equal to 30% of the unpaid principal balance of the securitized mortgage loans as of the cut-off date. The weighted average cost of debt on securities sold was 5.8%.
The securitization is rated by Fitch and Morningstar DBRS. Palisades Advisory Services, a wholly owned subsidiary of Chimera Investment Corporation, will act as the asset manager for the securitization.
Chimera Investment Corporation, a publicly traded real estate investment trust (REIT), primarily engages in investing for itself and unrelated third parties through its investment management and advisory services. Its portfolio includes a diversified range of real estate assets, such as residential mortgage loans, non-agency RMBS, agency RMBS, business purpose and investor loans, including RTLS, MSRs, and other real estate-related assets. Today the company's shares have moved -1.9% to a price of $14.61. For the full picture, make sure to review Chimera Investment's 8-K report.
