Overview
Description of Firm and Principal Owners
Cherry Hill Mortgage Management, LLC (“CHMM,” “we,” ”us,” “our,” the “Firm” or the “Manager”)
is an investment adviser organized for the purpose of managing the assets of Cherry Hill Mortgage
Investment Corporation (NYSE: CHMI), a residential real estate finance company, that has elected and
qualifies to be taxed as a real estate investment trust (“CHMI”). We are CHMI’s external manager
responsible for managing CHMI’s business affairs and investment strategy subject to the direction and
oversight of the CHMI board of directors. We specialize in the management of residential mortgage
related assets specific to the United States, with an investment strategy that balances the risk and reward
opportunities that we observe in the marketplace.
The Firm was organized as a limited liability company under the laws of the State of Delaware, on
November 20, 2012. Effective October 27, 2016, the sole member of the Firm is the CHMM Blind Trust
for the benefit of Stanley Middleman, who is also the founder and sole owner of Freedom Mortgage
Corporation (“Freedom”), a privately held, mortgage company that originates and services residential
mortgage loans nationwide.
Description of Advisory Services
CHMM manages on a discretionary basis CHMI’s portfolio of residential real estate mortgage assets
and derivatives in conformity with the policies and the investment guidelines that are approved and
monitored by CHMI’s board of directors. This includes the selection, acquisition, structuring, interest
rate risk mitigation
and monitoring of CHMI’s assets and associated borrowings. The portfolio is limited
to residential mortgage related assets and financial instruments designed to allow the client to qualify
and maintain its tax status as a REIT and maintain CHMI’s exclusion from regulation as an investment
company under the Investment Company Act of 1940.
CHMM has the authority to invest CHMI’s equity capital in excess mortgage servicing rights (or
“Excess MSRs”), which is the excess servicing fee above the base servicing fee, as well as residential
mortgage-backed securities (“RMBS”), including Agency and non-Agency RMBS, TBAs,
collateralized mortgage obligations (“CMOs”), prime mortgage loans, risk sharing securities and
mortgage servicing rights (“MSRs”). CHMM also has the authority to engage in hedging activities
through the use of derivatives and other types of securities, such as interest rate swaps (floating-to-fixed,
fixed-to-floating, floating-to-inverse floating, callable or non-callable); TBAs, U.S. treasury securities;
swaptions, caps, floors and other derivatives on interest rates; futures and forward contracts; and options
on any of the above.
Tailored Advisory Services
Our principal objective is to tailor our advisory services to the specific needs of our sole client, CHMI.
CHMM neither acts as an adviser or sub-adviser in any wrap fee program nor serves as the sponsor of
a wrap fee program.
Assets Under Management
We currently have $1,392,992,000 discretionary regulatory assets under management for our sole
client, CHMI.