Acquisition of HomeXpress
Chimera Investment Corporation completed the acquisition of HomeXpress for $267 million, which is expected to be accretive to earnings and add a new revenue stream. The acquisition is anticipated to bring greater diversification and more recurring income.
Increased Origination Volume
HomeXpress originated $2.4 billion by UPB through September 30, marking a 36% year-over-year increase. For Q4, they expect around $1 billion in originations with an annualized return on equity of 19% to 23%.
Strategic Portfolio Repositioning
Chimera strategically repositioned its portfolio, reducing its residential credit allocation to below 70% and increasing Agency MBS to about 17%, enhancing earnings and diversification.
Liquidity Management and Strategic Developments
The company ended the quarter with $752 million in total cash and unencumbered assets, up from $561 million at the end of the second quarter, achieved through strategic asset sales and issuing senior unsecured notes.