This glossary defines some of the terms that we use elsewhere in this Annual Report on Form 10-K and is not a complete list of all of the defined terms used herein. In this Annual Report on Form 10-K, unless specifically stated otherwise or the context otherwise indicates, references to we, us, our, the Company or CHMI refer to Cherry Hill Mortgage Investment Corporation, a Maryland corporation, together with its consolidated subsidiaries; references to the Manager refer to Cherry Hill Mortgage Management, LLC, a Delaware limited liability company; and references to the Operating Partnership refer to Cherry Hill Operating Partnership, LP, a Delaware limited partnership.
Agency means a U.S. Government agency, such as Ginnie Mae, or a GSE.
Agency RMBS means RMBS issued by an Agency or for which an Agency guarantees payments of principal and interest on the securities.
ASC means an Accounting Standards Codification.
ARM means an adjustable-rate residential mortgage loan.
CFTC means the U.S. Commodity Futures Trading Commission.
CMO means a collateralized mortgage obligation. CMOs are either loss share securities issued by a GSE or structured debt instruments representing interests in specified pools of mortgage loans subdivided into multiple classes, or tranches, of securities, with each tranche having different maturities or risk profiles.
credit enhancement means techniques to improve the credit ratings of securities, including overcollateralization, creating retained spread, creating subordinated tranches and insurance.
Excess MSR means an interest in an MSR, representing a portion of the interest payment collected from a pool of mortgage loans, net of a basic servicing fee paid to the mortgage servicer.
Fannie Mae means the Federal National Mortgage Association.
FHA means the Federal Housing Administration.
Freddie Mac means the Federal Home Loan Mortgage Corporation.
FRM means a fixed-rate residential mortgage loan.
Ginnie Mae means the Government National Mortgage Association, a wholly-owned corporate instrumentality of the United States of America within HUD.
GSE means a government-sponsored enterprise. When we refer to GSEs, we mean Fannie Mae or Freddie Mac.
HUD means the U.S. Department of Housing and Urban Development.
hybrid ARM means a residential mortgage loan that has an interest rate that is fixed for a specified period of time (typically three, five, seven or ten years) and thereafter adjusts to an increment over a specified interest rate index.
inverse IO means an inverse interest-only security, which is a type of stripped security. These debt securities receive no principal payments and have a coupon rate which has an inverse relationship to its reference index.
IO means an interest-only security, which is a type of stripped security. IO strips receive a specified portion of the interest on the underlying assets.
MBS means mortgage-backed securities.
MSR means a mortgage servicing right. An MSR provides a mortgage servicer with the right to service a mortgage loan or a pool of mortgages in exchange for a portion of the interest payments made on the mortgage or the underlying mortgages. An MSR is made up of two components: a basic servicing fee and an Excess MSR. The basic servicing fee is the amount of compensation for the performance of servicing duties.
mortgage loan means a loan secured by real estate together with the right to receive the payment of principal and interest on the loan (including the servicing fee).