Chimera Investment Corporation

Company type and structure

• Diversified residential real estate company that invests in, originates, and manages primarily residential real estate assets.
• Organized as a Maryland-based internally managed REIT for U.S. federal tax purposes.
• Two reportable segments: Investment Portfolio and Residential Origination.
• Provides investment management/advisory services through Palisades Advisory Services LLC (PAS) and mortgage origination through HomeXpress Mortgage Corp. (HomeXpress).
• Palisades Acquisition completed on December 2, 2024, adding investment management and advisory capabilities; integration of Palisades IT assets completed in 2025.

Segments

Investment Portfolio

• Holds investments and provides third-party advisory services.
• Asset types include residential mortgage loans, Non-Agency RMBS, Agency RMBS, Agency CMBS, MSRs, RTLs, and other real estate-related assets.
• Finances assets through securitizations, warehouse facilities, repurchase agreements, and debt/equity issuance.
• Retains subordinated securities in securitizations and may sponsor or participate in various securitization programs.

Residential Origination

• Stand-alone mortgage origination business operated by HomeXpress.
• Originates consumer Non-QM loans, investor business purpose loans, and other Non-Agency and Agency mortgage loans.
• Primarily wholesale through independent mortgage brokers and bankers; also operates a non-delegated correspondent channel with potential future delegation.
• Sells originated loans on a servicing-released basis to third-party investors and uses warehouse financing to fund originations.

Recent acquisitions and integration

• HomeXpress Mortgage Corp. acquired on October 1, 2025 for total consideration of $272 million (cash of $124 million representing adjusted book value as of 9/30/2025, cash premium of $120 million, and issuance of 2,077,151 shares).
• Began originating consumer Non-QM, investor business purpose, and other mortgage loan products through HomeXpress in Q4 2025.
• Palisades (TPG, PAS, Palisades Technology Holdings, LLC, and affiliates) acquired in 2024; integration activities continued through 2025, including IT integration and governance alignment.

Key operating metrics and portfolio composition (as of December 31, 2025)

• Investment Portfolio allocation by fair value of interest-earning assets:
  • 65% Residential mortgage loans
  • 23% Agency MBS
  • 5% Non-Agency RMBS
  • <1% MSR financing receivables
  • 6% Loans held for sale
• HomeXpress origination volumes:
  • 2025: approximately $3.4 billion of total mortgage loans originated and acquired
  • 2024: approximately $2.5 billion
• Geographic concentration of secured assets: concentration in California, New York, Florida, Illinois, and Texas.
• Leverage and financing:
  • Debt-to-equity ratio at December 31, 2025: 5.1:1 (vs. 4.0:1 in 2024).
  • Financing sources include securitizations, secured financing facilities (warehouse lines and repurchase agreements), and debt/equity issuances; use of non-MTM, limited MTM, and other structures to manage leverage and liquidity.

Funding and liquidity for HomeXpress

• Seven warehouse facilities (three non-MTM) with total borrowing capacity of about $1.4 billion.
• Outstanding balance on HomeXpress’ warehouse facilities as of 12/31/2025: approximately $802 million.
• Facilities are typically short-term, uncommitted, and subject to covenants and financing terms; the business relies on counterparty financing for loan origination.

Customers and clients

• HomeXpress distribution primarily through independent mortgage brokers and bankers (wholesale channel).
• Residential Origination revenue model is based on mortgage loan sale gains (servicing-released) and warehouse financing; potential expansion to a delegated correspondent channel.
• Investment management and advisory clients include third-party institutions, insurers, credit funds, and other institutional investors; the Palisades platform expanded discretionary and non-discretionary advisory capabilities.

Employees

• Total full-time employees: 423 as of December 31, 2025.
• Employees at HomeXpress: 332 of the total.

Corporate offices and properties

• Corporate headquarters: leased space at 630 Fifth Avenue, New York, NY 10111 (lease through January 2027).
• Off-site data centers / backup facilities: Wappingers Falls, NY and Norwalk, CT (leases through 2026).
• Palisades acquisitions added leases in Austin, TX (Bold Ruler Way and 401 South 1st Street) and Evanston, IL (909 Davis Street) with various term dates.
• HomeXpress facilities in Santa Ana, CA and Tampa, FL (lease terms through 2027–2029).

Revenue and income sources

• Primary revenue sources include net interest income from the investment portfolio, fees and incentive income from third-party investment management and advisory services, and HomeXpress origination gains and related servicing income.

Regulatory and structure notes

• Operates under REIT status with related 1940 Act exemption considerations and TRS structures; retains risk retention positions in certain securitizations.
• Investments and financing are subject to regulatory oversight, including CFPB, the Advisers Act, and rules related to REIT asset tests.
• Governance and risk management emphasize hedging, liquidity, and interest-rate risk, with a framework aligned to NIST CSF.

Summary

Chimera is a vertically integrated, residential real estate firm with two primary operations: managing an Investment Portfolio of mortgage assets and related securities, and originating consumer Non-QM and investor real estate loans through HomeXpress. The company expanded through the Palisades acquisition in 2024 and the HomeXpress acquisition in 2025, integrating advisory and originations capabilities. By the end of 2025, Chimera employed 423 people, maintained substantial warehouse financing and securitization activity, and held a diversified but geographically concentrated asset base.