Chimera Investment Corporation (CIM): Business Model Canvas [Dec-2025 Updated]

You're trying to map out Chimera Investment Corporation (CIM)'s business model after their major 2025 pivot, especially with the HomeXpress acquisition changing the game from just buying mortgages to actively originating them. It's a sophisticated setup, blending traditional mortgage credit management with a proprietary origination platform, all structured to deliver that high distributable income REIT investors expect. To be fair, the real action is in the spread: as of Q3 2025, they were netting a 1.4% spread on their assets, yielding 5.9% against a 4.5% cost of funds, while supporting a $0.37 common dividend. This canvas distills exactly how they partner, fund, and generate revenue from their $10.3 billion investment portfolio-so check below to see the full, precise architecture of their strategy. It's a defintely interesting mix of old-school finance and new-school origination.

Chimera Investment Corporation (CIM) - Canvas Business Model: Key Partnerships

You're looking at the structure that lets Chimera Investment Corporation originate, finance, and distribute assets, especially now with the HomeXpress integration. These partnerships are the engine room for their hybrid mortgage REIT strategy.

The relationships with mortgage brokers and correspondent lenders are now significantly amplified following the acquisition of HomeXpress Mortgage Corp., which closed on October 1, 2025. HomeXpress is described as a partner of choice for these originators nationwide, lending in 46 states and D.C.. This partnership is key to sourcing non-QM (non-Qualified Mortgage) loans, which HomeXpress originated approximately $2.5 billion in UPB (unpaid principal balance) in 2024, with projections for a full-year 2025 origination volume of $3.5 billion, having funded $1.2 billion year-to-date through May 2025.

Financing these assets relies heavily on relationships with financial institutions providing secured financing, primarily structured as repurchase agreements (Repo). As of the third quarter of 2025, Chimera Investment Corporation had $2.1 billion outstanding repo liabilities secured by the residential credit portfolio. Chimera Investment Corporation depends upon several financial institutions to provide these short-term warehouse lines of credit to finance loan originations under HomeXpress's facilities. Furthermore, 53% of the outstanding residential credit repo, equating to $1.1 billion, carried a floating rate sensitivity as of Q3 2025.

Partnerships with Government-Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac are central to Chimera Investment Corporation's Agency RMBS (Residential Mortgage-Backed Securities) and MSR (Mortgage Servicing Rights) strategy. In early Q3 2025, Chimera Investment Corporation settled its first MSR transaction, which involved a portfolio of $6.5 billion of Fannie Mae loans, executed through a third-party servicing partnership. To manage the associated market risk on the Agency RMBS side, Chimera Investment Corporation maintained $2.4 billion notional value of interest rate swaps protecting against $2.4 billion of outstanding repo liabilities in Q3 2025.

The distribution channel involves third-party institutions for selling originated loans and capital markets distribution, which is part of Chimera Investment Corporation's history of loan securitization. For instance, in March 2025, securities issued by CIM 2025-R1, totaling approximately $333 million in aggregate balance, were sold via a private placement to institutional investors. The HomeXpress acquisition itself involved capital markets activity, with Chimera Investment Corporation paying $120 million in cash plus 2.08 million shares valued at $27.9 million. Overall, Chimera Investment Corporation's total debt on the balance sheet as of September 2025 stood at $12.21 Billion USD.

You can see a snapshot of the financing and asset allocation that these partnerships enable:

Asset/Liability Category (as of Q3 2025 or latest data)	Amount/Metric	Reference Period
Total Debt on Balance Sheet	$12.21 Billion USD	September 2025
Outstanding Repo Liabilities (Residential Credit)	$2.1 billion	Q3 2025
Agency RMBS Swap Notional (Hedge)	$2.4 billion	Q3 2025
Fannie Mae MSR Portfolio Size	$6.5 billion	Early Q3 2025
HomeXpress YTD Origination Volume	$1.2 billion	Through May 2025
HomeXpress 2025 Projected Origination Volume	$3.5 billion	Full Year 2025
CIM 2025-R1 Securitization Sold	Approx. $333 million	March 2025

The reliance on these external parties means Chimera Investment Corporation must maintain strong working relationships, especially since HomeXpress's warehouse facilities are uncommitted and can be terminated by the lender at any time. The strategic rationale for acquiring HomeXpress was to create a cross-selling opportunity and provide the ability for Chimera Investment Corporation to acquire and securitize loans on a direct basis.

Key partners and their associated activities include:

• Investment Banks/Capital Markets: Underwritten public offering of senior notes (e.g., $74.75 million notes due 2029 in August 2024).
• Mortgage Brokers/Correspondent Lenders: Sourcing non-QM and Agency loans via the HomeXpress platform, which originated $2.5 billion in 2024.
• Financial Institutions (Repo Counterparties): Providing short-term warehouse facilities to finance loan originations, with $2.1 billion in outstanding repo liabilities as of Q3 2025.
• Third-Party Institutions: Buyers in capital markets distribution, such as the institutional investors who bought the $333 million CIM 2025-R1 securities.
• Third-Party Servicers: Partnering to service the $6.5 billion Fannie Mae MSR portfolio acquired in Q3 2025.

Finance: review covenant compliance for the $2.1 billion residential credit repo by end of Q4 2025.

Chimera Investment Corporation (CIM) - Canvas Business Model: Key Activities

You're looking at the core engine of Chimera Investment Corporation, the activities that actually generate their returns and drive their platform growth. It's a mix of investing their own capital and managing money for others, all centered on the mortgage credit space.

Managing a diversified portfolio of mortgage credit assets on a levered basis is central to Chimera Investment Corporation's operation. They invest, directly or indirectly, generally on a levered basis across a spectrum of mortgage assets. As of September 30, 2025, the total assets of their consolidated Variable Interest Entities (VIEs)-a common structure for levered assets-stood at $9,655,438 thousand. For the third quarter of 2025, the total leverage Chimera Investment Corporation employed was 4.8 to 1.

The company actively engages in securitizing residential mortgage loans to finance and manage its portfolio. For instance, Chimera Investment Corporation sponsored two securitizations in March 2025 with an aggregate principal balance of $646 million, sourced from the redemption of prior securitizations. Separately, as of January 31, 2025, they sponsored CIM 2025-I1, a $287.7 million securitization of residential mortgage investor loans.

A key strategic move involves originating non-QM (non-Qualified Mortgage) and business purpose mortgage loans through the HomeXpress subsidiary. Chimera Investment Corporation completed the acquisition of HomeXpress on October 1, 2025, for a purchase price including $240 million in cash consideration. HomeXpress originated approximately $1.2 billion of mortgage loans year-to-date through May 2025. Management projected HomeXpress could originate approximately $3.5 billion in loans for the full year 2025.

To manage the inherent market volatility, Chimera Investment Corporation focuses heavily on hedging interest rate risk. For the third quarter of 2025, they maintained $2.4 billion notional value of interest rate swaps, swap futures, and cancelable swaps. This hedging activity was specifically used to protect against $2.4 billion of outstanding repo liabilities. This is an increase from the $2.2 billion in interest rate swaps reported as of Q1 2025.

Finally, providing asset management and advisory services to third-party clients via the Palisades Group subsidiary diversifies revenue. By Q1 2025, loans under management for third parties had grown 44.8% year-over-year, reaching $24.0 billion. Servicing and asset manager fees, a direct result of this activity, totaled $6,991 thousand for the third quarter of 2025.

Here's a quick look at the scale of these key activities as of the latest reporting periods:

Activity Metric	Latest Reported Value	Period/Date
Total Leverage	4.8 to 1	Q3 2025
Total Assets of Consolidated VIEs	$9,655,438 thousand	September 30, 2025
Interest Rate Hedge Notional Value	$2.4 billion	Q3 2025
Aggregate Securitization Balance (Example)	$646 million	Q1 2025
HomeXpress YTD Origination Volume	$1.2 billion	Through May 2025
Loans Under Management (Third-Party)	$24.0 billion	Q1 2025
Servicing and Asset Manager Fees	$6,991 thousand	Q3 2025

You should definitely track the growth in the third-party asset management segment, as that fee income is less capital-intensive than the levered portfolio investments.

• Securitization activity included releasing $187 million of investable capital by exercising call rights on seven non-REMIC securitizations in Q1 2025.
• The HomeXpress acquisition involved a premium of $120 million in cash plus stock issuance.
• The weighted average cost of debt on securities sold in the CIM 2025-I1 securitization was 5.8%.
• The yield on average interest-earning assets for Q3 2025 was 5.9%, with an average cost of funds at 4.5%.

Finance: draft 13-week cash view by Friday.

Chimera Investment Corporation (CIM) - Canvas Business Model: Key Resources

You're looking at the core assets that power Chimera Investment Corporation's operations right now, heading into 2026. These aren't just line items; they are the engines for their hybrid mortgage REIT strategy.

The foundation is the investment portfolio itself. As of late 2025, Chimera Investment Corporation maintained a diversified mortgage investment portfolio totaling $15.1 billion as of September 30, 2025. The core of this is residential credit. For context on the loan book, the total amortized cost of the Company's Loans held for investment was $10.7 billion as of June 30, 2025. This portfolio is primarily residential mortgage loans, which represented 73% of the total portfolio at that earlier date.

Access to capital is critical for a leveraged entity like Chimera Investment Corporation, and they use a mix of markets to fund those assets. Their funding structure as of September 30, 2025, shows reliance on several sources:

Funding Source	Amount (as of Q3 2025)
Securitized Debt	$7.09 billion
Repo Financing (Secured Debt)	$4.88 billion
Unsecured Debt	$251 million

The company also recently executed on unsecured funding, issuing $120 million of 8.875% senior unsecured notes due 2030. Furthermore, they actively manage their financing by executing securitization transactions, having recently completed a cash-out refinancing of non-Remic securitizations that provided approximately $187 million in funds for new investment.

A major strategic asset is the proprietary origination platform, HomeXpress, which Chimera Investment Corporation acquired. This platform provides direct access to loan production, which is key for their strategy. HomeXpress has a nationwide footprint, actively lending in 46 states for business purpose loans. Since its founding, the platform has originated more than $10.7 billion in loans in total. Through the first three quarters of 2025, HomeXpress originated $2.44 billion by UPB, and Chimera Investment Corporation projects funded loan volume from HomeXpress to reach $4.0 to $4.4 billion in 2026.

The teams running the show are a resource in themselves, especially for complex credit. The HomeXpress senior management team, including the President and CEO, will continue to lead the business post-acquisition. This expertise is expected to generate significant earnings, with projected after-tax earnings from HomeXpress for Q4 2025 estimated between $13 million to $15 million, after the application of Chimera Investment Corporation's tax benefits.

Finally, Chimera Investment Corporation possesses significant tax assets. The company holds Substantial Net Operating Losses (NOLs), which are expected to cover a significant portion of the acquisition premium paid for HomeXpress. This resource directly enhances the profitability of the acquired origination business by reducing its tax exposure, as seen in the projected Q4 2025 after-tax earnings figures.

• Total leverage for Q3 2025 stood at 4.8:1.
• Recourse leverage ended Q3 2025 at 2.0:1.
• Total cash and unencumbered assets ended Q3 2025 at $752 million.
• GAAP book value per common share as of September 30, 2025, was $20.24.

Chimera Investment Corporation (CIM) - Canvas Business Model: Value Propositions

You're looking at the core reasons why investors choose Chimera Investment Corporation (CIM), focusing strictly on the hard numbers reported as of late 2025.

High distributable income for shareholders, typical of a REIT structure.

Chimera Investment Corporation positions itself to deliver consistent cash flow. The focus here is on the cash available for distribution, which directly supports shareholder payouts. For the third quarter ending September 30, 2025, the Earnings Available for Distribution (EAD) was reported at $0.37 per adjusted diluted common share. This translates to an annualized payout of $1.48 per share based on trailing twelve months (TTM) figures. At recent pricing, this resulted in a TTM dividend yield of 11.52%. To put that yield in context, it is 75% higher than the Real Estate sector average yield of 6.6%. Also, the annualized dividend per share has increased by 7% over the last twelve months. The most recent quarterly cash dividend payment, with an ex-date of September 30, 2025, was $0.37 per share.

Attractive risk-adjusted returns through active management of mortgage credit risk.

The value proposition includes achieving returns while actively managing the credit exposure inherent in mortgage assets. The GAAP Book Value per common share stood at $20.24 as of September 30, 2025. While the Economic Return for the third quarter was negative at (1.4)%, the return for the nine months ending September 30, 2025, was 8.3%. Management points to the spread between asset yield and funding costs as a measure of active management success. For Q3 2025, the yield on average interest-earning assets was 5.9%, against an average cost of funds of 4.5%, resulting in a net interest spread of 1.4%. Leverage is actively managed, with total leverage at 4.8 to 1 and recourse leverage ending the quarter at 2 to 1.

Here's a quick look at key financial metrics from the Q3 2025 report:

Metric	Value (Q3 2025)	Unit
Earnings Available for Distribution (EAD) per Share	0.37	USD
GAAP Book Value per Common Share	20.24	USD
Economic Net Interest Income (ENII)	69 million	USD
Yield on Average Interest-Earning Assets	5.9	%
Average Cost of Funds	4.5	%
Total Leverage	4.8 to 1	Ratio
Recourse Leverage	2 to 1	Ratio
Investment Management and Advisory Fees	8.51 million	USD

Diversification across Agency MBS, Non-Agency RMBS, and residential mortgage loans.

Chimera Investment Corporation invests across a spectrum of mortgage assets, which is a core part of its diversification strategy. Total assets for the consolidated entity stood at $15.1B at September 30, 2025. The company invests in Agency RMBS, Non-Agency RMBS, residential mortgage loans, business purpose and investor loans (including RTLs), Agency CMBS, and MSRs. The recent strategic focus includes increasing capital allocation to Non-Agency RMBS securities. Furthermore, the acquisition of HomeXpress is expected to accelerate growth in the non-QM space, a sector where originations are estimated to reach 5.1% or more than $100 billion of total residential mortgage originations in 2025.

Integrated platform: combining loan origination, asset management, and investment for better control.

The value is enhanced by operating as a fully integrated mortgage business. This integration includes mortgage lending, investment management, and advisory services. A major step in this integration was the completion of the HomeXpress acquisition on October 1, 2025, for $240 million in cash plus stock. HomeXpress is a leading originator of consumer non-QM and investor business purpose loan products. Management projects HomeXpress originations up to $4.4 billion in 2026. Also, Palisades Advisory Services, a wholly owned subsidiary, acts as the Asset Manager for securitizations sponsored by the Company.

Liquidity and stability from growing the Agency RMBS portfolio and MSRs.

Liquidity management is a stated focus, evidenced by the cash position at the end of Q3 2025. Total cash and unencumbered assets ended the quarter at $752 million, an increase from $561 million at the end of the second quarter. This cash build-up was in preparation for the HomeXpress acquisition. Stability is sought through hedging and MSRs. On the Agency RMBS side, the company maintained $2.4 billion notional value of interest rate swaps, swap futures, and cancelable swaps protecting against $2.4 billion of outstanding repo liabilities. For MSRs, Chimera entered agreements in July 2025 to acquire rights associated with a $6.5 billion portfolio of mortgage loans through an MSR financing transaction.

• The Company sponsored a $287.7 million securitization of residential mortgage investor loans in January 2025 (CIM 2025-I1).
• The weighted average cost of debt on securities sold in that securitization was 5.8%.
• The company raised $116 million in capital through the issuance of senior unsecured notes due 2030, net of costs.

Chimera Investment Corporation (CIM) - Canvas Business Model: Customer Relationships

For common stock investors, the relationship is primarily transactional and automated, executed via public exchanges like the New York Stock Exchange. This segment interacts with Chimera Investment Corporation (CIM) through market-based share purchases and sales, and receipt of public communications like quarterly earnings reports. For instance, institutional investors bought 8,055,781 shares in the last 24 months, totaling approximately $108.53M in transactions, showing active public market engagement.

The relationship with institutional investors in securitizations and preferred stock is decidedly dedicated and high-touch. This involves direct negotiation and placement of securities. For example, in the CIM 2025-I1 securitization closed January 31, 2025, senior securities totaling approximately $275.7 million were sold in a private placement to institutional investors, representing 95.8% of that capital structure. Similarly, in the March 25, 2025 transactions totaling $646 million in aggregate principal balance, senior securities were sold to institutional investors. Palisades Advisory Services, a wholly owned subsidiary, acts as the Asset Manager for these securitizations.

Chimera Investment Corporation cultivates professional and long-term relationships with mortgage brokers and correspondent partners, significantly enhanced by the acquisition of HomeXpress Mortgage Corp. in June 2025. HomeXpress is described as a partner of choice for brokers and correspondent lenders across the U.S., operating in 46 states and D.C. HomeXpress originated an estimated $3.5 billion UPB of mortgage volume for the full year 2025, with $1.2 billion UPB funded through May 2025. This platform brings a robust capital markets presence, having sold over 20K+ loans to more than 30 unique third-party institutions.

Direct engagement with third-party asset management clients for advisory services is a growing focus, particularly following the acquisition of The Palisades Group. On a combined basis after the Palisades acquisition, Chimera Investment Corporation owned, advised, or managed over $30 billion of notional loans and real estate assets. The company intends to use the HomeXpress platform to cross-sell these asset advisory services to their existing clients.

Investor relations for common and preferred stockholders is managed through regular, formal communications. For common stockholders, key metrics include the GAAP book value of $20.24 per common share as of September 30, 2025, and the third quarter 2025 earnings available for distribution of $0.37 per diluted common share. For preferred stockholders, dividend communications are frequent, with the fourth quarter 2025 dividends declared on November 5, 2025, payable on December 30, 2025. The specific per-share amounts declared are detailed below:

Preferred Stock Series	Stated Dividend Rate	Q4 2025 Declared Dividend Per Share	Reflected Rate (Approximate)
Series A (Cumulative)	8.00%	$0.50	N/A
Series B (Fixed-to-Floating)	8.00%	$0.6274	10.03786%
Series C (Fixed-to-Floating)	7.75%	$0.5681	8.98986%
Series D (Fixed-to-Floating)	8.00%	$0.6083	9.62586%

The relationship with preferred stockholders is reinforced by the fact that all four preferred issues are cumulative, meaning the company has a strong incentive to maintain payments, as skipping them would eliminate the common dividend.

Chimera Investment Corporation (CIM) - Canvas Business Model: Channels

You're looking at how Chimera Investment Corporation (CIM) gets its products and services to the market and to its investors as of late 2025. It's a mix of public market access and direct mortgage origination, especially after the big HomeXpress deal.

New York Stock Exchange (NYSE) for common stock (CIM) and preferred stock trading.

The common stock trades on the NYSE under the ticker CIM. As of the market close on November 24, 2025, the price was $12.18 USD. The GAAP Book Value per common share, reported as of September 30, 2025, stood at $20.24. Chimera Investment Corporation also utilizes the NYSE channel for its preferred stock, with series like the 8.00% Series A Cumulative Redeemable Preferred Stock (CIM.P.A) trading there. The issuance of 2,077,151 shares of common stock was part of the consideration for the HomeXpress acquisition.

Wholesale and correspondent lending channels for mortgage loan origination (HomeXpress).

The acquisition of HomeXpress Mortgage Corp. closed on October 1, 2025, making this a primary origination channel. The closing payment for HomeXpress was $240 million in cash (comprising an estimated adjusted book value of $120 million plus a $120 million premium) plus the aforementioned stock issuance. HomeXpress is active in 46 states and D.C.. The company projects pre-tax earnings from HomeXpress to range between $62 million and $80 million for 2026.

Here's a look at the lending volume data leading up to the end of Q3 2025:

Metric	Value/Rate	Period/Date
Year-to-Date Lending Volume Increase (vs. 2024)	36%	Q3 2025 Report
Quarter-over-Quarter Lending Volume Increase	5%	Q3 2025
Wholesale Volume Share of Q3 Lending	96%	Q3 2025
HomeXpress Year-to-Date Funded Origination Volume	$1.2 billion	Through May 2025
HomeXpress Estimated Full Year 2025 Origination Volume	$3.5 billion	Estimate

The correspondent channel is specifically noted as an area of growth potential starting in 2026. That's how they plan to diversify beyond the heavy reliance on wholesale, which was 96% of Q3 volumes.

Private placement markets for selling senior tranches of securitized debt to institutions.

Chimera Investment Corporation uses securitization as a primary funding source, evidenced by its Variable Interest Entities (VIEs). As of September 30, 2025, the total assets of consolidated VIEs were $9,655,438 thousand, with total liabilities of $7,403,098 thousand. The total leverage for Q3 2025 was 4.8 to 1, with recourse leverage at 2 to 1. Furthermore, in Q3 2025, the company actively managed this channel by selling $617 million of retained bonds and other positions, releasing $116 million of capital at a 7.3% ROE hurdle.

Investment banks and underwriters for issuing new debt and equity capital.

The issuance of 2,077,151 shares of common stock as part of the HomeXpress purchase indicates the use of equity capital markets, likely involving underwriters for the transaction. The company also manages its capital structure through various preferred stock issuances, such as the Series A with an 8.00% stated coupon. The company's overall funding structure includes $7,039 million in non-recourse securitized debt supporting its mortgage loan portfolio as of June 30, 2025.

Corporate website and SEC filings for investor information and financial transparency.

You access the latest official disclosures via the corporate website, www.chimerareit.com. The Q3 2025 financial results were released on November 6, 2025, via press release. Key filings used for transparency include the 8-K and 10-Q documents filed with the SEC. For instance, the Q3 2025 earnings report provided a GAAP Net Loss of $0.27 per diluted common share for the quarter.

• Investor Relations contact email: investor-relations@chimerareit.com.
• Q3 2025 Earnings Call U.S. Toll Free Number: (866) 604-1613.
• The company has approximately 77 Employees.

Finance: review the impact of the $120 million HomeXpress premium on the Q4 2025 GAAP book value by next Tuesday.

Chimera Investment Corporation (CIM) - Canvas Business Model: Customer Segments

You're looking at the distinct groups Chimera Investment Corporation (CIM) serves across its hybrid mortgage REIT and asset management platforms as of late 2025. It's not just one type of investor; it's a spectrum from retail shareholders to large institutions.

Common Stock Investors seeking high dividend yield and total economic return.

These investors focus on the common shares of Chimera Investment Corporation, looking for distributions and appreciation. For the third quarter of 2025, the declared cash dividend was $0.37 per common share, payable on October 31, 2025. The company's book value per share stood at $20.24 as of September 30, 2025, which resulted in a negative economic return of 1.4% for that quarter. The overall market sentiment reflects a significant institutional presence, with ownership reported at 57.06% or 53.62%. The total market capitalization for Chimera Investment Corporation was around $1.08 billion or $1.06 billion. The company has approximately 83.15 million shares outstanding.

Here's a quick look at some key metrics relevant to this segment as of late 2025:

Metric	Value	Date/Period
Market Cap	$1.08B	Late 2025
Shares Outstanding	83.15M	Late 2025
Institutional Ownership	57.06%	Late 2025
Q3 2025 Common Dividend	$0.37 per share	Q3 2025
GAAP Book Value per Share	$20.24	September 30, 2025

Still, you have to watch the total return; the stock price had decreased by -13.61% over the last 52 weeks.

Preferred Stock Investors looking for fixed or fixed-to-floating rate income.

This group targets the various series of Cumulative Redeemable Preferred Stock issued by Chimera Investment Corporation, which offer different income profiles. For the fourth quarter of 2025, dividends were declared for record holders on December 1, 2025, payable December 30, 2025.

• Series A (8.00% Fixed Rate): Declared dividend of $0.50 per share.
• Series B (8.00% Fixed-to-Floating Rate): Declared dividend reflecting a rate of 10.03786%, or $0.6274 per share.
• Series C (7.75% Fixed-to-Floating Rate): Declared dividend reflecting a rate of 8.98986%, or $0.5681 per share.
• Series D (8.00% Fixed-to-Floating Rate): Declared dividend reflecting a rate of 9.93822% (based on Q2 data, Q4 rate not fully specified but dividend was $0.6083 per share).

To be fair, the fixed-to-floating issues tie income to the three-month CME Term SOFR plus a spread adjustment of 0.26161%.

Institutional Investors purchasing senior tranches of mortgage securitizations.

These are sophisticated entities that buy the most secure parts of the mortgage-backed securities (MBS) that Chimera Investment Corporation sponsors or holds. For example, in the CIM 2025-I1 securitization sponsored on January 31, 2025, securities sold to institutional investors totaled approximately $275.7 million, representing about 95.8% of that capital structure. The weighted average cost of debt on those sold securities was 5.8%. Chimera Investment Corporation retained subordinate interests of approximately $11.9 million in that same deal.

Mortgage Brokers and Correspondent Lenders utilizing the HomeXpress origination platform.

This segment engages with Chimera Investment Corporation through its subsidiary, HomeXpress Mortgage Corp., which was acquired and closed on October 1, 2025. HomeXpress is a nationwide platform originating non-QM, investor business purpose, and Agency mortgage loan products. Through May 2025, HomeXpress had originated $1.2 billion in mortgage loans year-to-date, with full-year projections set at $3.5 billion. Management projected that HomeXpress would generate after-tax earnings of $13-15 million for the fourth quarter of 2025. The acquisition purchase price was $267 million.

Third-Party Institutional Clients for non-discretionary asset management services.

Chimera Investment Corporation invests on behalf of these clients through its investment management and advisory services activities. Fee income reflects this business line. For the second quarter of 2025, servicing and asset manager fees were reported as $7,306 (likely in thousands, given context). For the third quarter of 2025, two related fee line items were reported as $31,000 and $21,000 (likely in thousands). Finance: draft 13-week cash view by Friday.

Chimera Investment Corporation (CIM) - Canvas Business Model: Cost Structure

You're looking at the costs that drive Chimera Investment Corporation's operations as of late 2025, focusing on the figures reported for the third quarter ended September 30, 2025. Understanding these outflows is key to seeing where the capital is going.

The most significant financing cost is the interest expense on secured financing agreements and securitized debt. For Q3 2025, the total reported Interest Expense was $144,089 thousand. This was incurred while maintaining an average cost of funds of 4.5% in Q3 2025.

Operating expenses saw a notable increase in the period. Specifically, compensation, general, administrative, and servicing expenses were higher by $2 million, which the company attributed primarily to one-time severance payments.

The strategic move to acquire HomeXpress also generated specific costs. Transaction expenses for Q3 2025 were reported at $9,931 thousand, with the company noting this reflected the cost associated with the HomeXpress acquisition. The acquisition itself closed on October 1, 2025, for a total consideration including an estimated adjusted book value plus a premium.

Shareholder returns are a direct cost, with dividends paid to both common and preferred stockholders. The Q3 2025 common stock dividend declared was $0.37 per share. For preferred stockholders, the Dividends on preferred stock for the three months ended September 30, 2025, totaled $21,417 thousand.

The costs associated with the new origination platform are embedded within the operating expenses. While a specific line item for all personnel and technology costs for the HomeXpress platform isn't isolated in the summary financials, the components that make up the general operating costs give you a view of the overhead.

Here's a breakdown of the key 'Other expenses' for the three months ended September 30, 2025, in thousands of USD:

Expense Category	Q3 2025 Amount (in thousands)	Context/Detail
Compensation and benefits	$13,756	Part of the overall operating structure.
General and administrative expenses	$6,936	Included the impact of severance costs.
Servicing and asset manager fees	$6,991	Fees related to asset management activities.
Transaction expenses	$9,931	Reflecting costs like the HomeXpress acquisition.
Amortization of intangibles and depreciation expenses	$948	Non-cash expense component.

The total of these reported other expenses for the quarter was $38,562 thousand.

You should also note the direct shareholder payouts:

• Common Stock Dividend (Q3 2025): $0.37 per share.
• Preferred Stock Dividends (Q3 2025): $21,417 thousand.

The cost of funding the asset base, represented by Interest Expense, remains the largest single cost component, exceeding $144 million for the quarter. Finance: draft 13-week cash view by Friday.

Chimera Investment Corporation (CIM) - Canvas Business Model: Revenue Streams

You're looking at how Chimera Investment Corporation brings in the money, especially now that the big HomeXpress acquisition has closed. It's a mix of traditional lending spreads and fee-based services, which is key for a hybrid mortgage REIT like CIM.

The core of the earnings engine is the spread between what the assets earn and what the financing costs. For the third quarter of 2025, the yield on average interest-earning assets hit 5.9%. That's against an average cost of funds of 4.5%, resulting in a net interest spread of 1.4%. On a GAAP basis for Q3 2025, the resulting Net Interest Income was $65,011 thousand. The economic net interest income was reported as $69 million or $68.6M.

When it comes to selling assets, Chimera Investment Corporation realizes gains, though management is balancing this with retaining assets for long-term yield. For the quarter ending September 30, 2025, the reported Net realized gains (losses) on sales of investments was $1,991 thousand.

The recent acquisition of HomeXpress, which closed on October 1, 2025, is set to become a significant revenue driver, though its full impact will reflect in later quarters. HomeXpress originated approximately $1.2 billion of mortgage loans year-to-date through May 2025. Management projects after-tax earnings from HomeXpress to be in the range of $13-15 million for Q4 2025 and $53-68 million for the full year 2026.

Interest income from the investment portfolio is substantial, especially from the assets held within consolidated Variable Interest Entities (VIEs). For the quarter ended September 30, 2025, the interest income from consolidated VIEs was $137,597 thousand, which is right around the $137.6 million figure you mentioned. Also contributing was $500 thousand in interest income from investment in MSR financing receivables of a consolidated VIE for the same period.

Fee-based income from the integrated platform is another stream. Investment management and advisory fees for Q3 2025 totaled $8,509 thousand. To give you context, that compares to $0 in fees reported in the third quarter of 2024.

Here's a quick look at the key components of revenue generation for the third quarter of 2025, in thousands of dollars:

Revenue Component	Q3 2025 Amount (in thousands)
GAAP Net Interest Income	$65,011
Interest Income from Consolidated VIEs	$137,597
Investment Management and Advisory Fees	$8,509
Net Realized Gains on Sales of Investments	$1,991
Interest Income from MSR Financing Receivables (VIE)	$500

The sources feeding into Chimera Investment Corporation's revenue are quite diverse:

• Net Interest Income from the asset/funding spread.
• Realized gains from selling originated loans and retained bonds.
• Interest income generated by the large investment portfolio, including VIE assets.
• Fee-based income from third-party asset management and advisory services.
• Income streams from the newly acquired HomeXpress subsidiary, expected to grow in 2026.

Finance: draft 13-week cash view by Friday.