Latest news with #RMBS
Business Wire
3 days ago
- Business
- Business Wire
KBRA Assigns Preliminary Ratings to RCKT Mortgage Trust 2025-CES8 (RCKT 2025-CES8)
NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 20 classes of mortgage-backed notes from RCKT Mortgage Trust 2025-CES8 (RCKT 2025-CES8). RCKT Mortgage Trust 2025-CES8 (RCKT 2025-CES8) is a $546.1 million RMBS transaction, as of the cut-off date, sponsored by Woodward Capital Management LLC, a wholly owned affiliate of Rocket Mortgage, LLC, and EF Mortgage LLC, and consists entirely of newly originated closed-end second lien mortgages (CES; 100.0%). The underlying pool is seasoned less than one month on average and comprises 6,145 loans originated solely by Rocket Mortgage, LLC (Rocket). The collateral is characterized entirely by fully amortizing, fixed-rate mortgages (FRMs) with 10-year (3.3%), 15-year (9.5%), 20-year (64.5%), and 30-year (22.8%) terms. KBRA's rating approach incorporated loan-level analysis of the mortgage pool through its Residential Asset Loss Model (REALM), an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transaction's payment structure, reviews of key transaction parties and an assessment of the transaction's legal structure and documentation. This analysis is further described in our U.S. RMBS Rating Methodology. To access ratings and relevant documents, click here. Click here to view the report. Related Publications Methodologies RMBS: U.S. RMBS Rating Methodology Structured Finance: Global Structured Finance Counterparty Methodology ESG Global Rating Methodology Disclosures Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above. A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1010744
Business Wire
3 days ago
- Business
- Business Wire
Cherry Hill Mortgage Investment Corporation Announces Second Quarter 2025 Results
TINTON FALLS, N.J.--(BUSINESS WIRE)--Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) ('Cherry Hill' or the 'Company') today reported results for the second quarter 2025. Second Quarter 2025 Highlights In May 2025, CHMI Solutions, Inc., a subsidiary of CHMI, entered into a strategic partnership and financing with Real Genius LLC ('Real Genius'), a Florida-based digital mortgage technology company. Accessed at-the-market equity program, generating additional proceeds of approximately $8.9 million. GAAP net loss applicable to common stockholders of $0.9 million, or $0.03 per share. Earnings available for distribution ('EAD') attributable to common stockholders of $3.2 million, or $0.10 per diluted share. Common book value per share of $3.34 at June 30, 2025. Declared regular common dividend of $0.15 per share; annualized common dividend yield was 20.8% based on the closing sale price of the Company's common stock as reported by the NYSE on August 6, 2025. Aggregate portfolio leverage stood at 5.3x at June 30, 2025. As of June 30, 2025, the Company had unrestricted cash of $58.0 million. 'We are pleased with the progress made in the second quarter, successfully raising additional equity and entering into a strategic partnership with Real Genius, an innovative digital mortgage company,' said Jay Lown, President and CEO of Cherry Hill Mortgage Investment Corporation. 'Moving into the second half of the year, we remain focused on prudently growing Cherry Hill as we seek to deliver attractive risk-adjusted returns to our shareholders.' Operating Results Cherry Hill reported GAAP net loss applicable to common stockholders for the second quarter of 2025 of $0.9 million, or $0.03 per basic and diluted weighted average common share outstanding. Reported GAAP net loss was determined based primarily on the following: $2.6 million of net interest income, $9.0 million of net servicing income, a net realized loss on RMBS of $2.1 million, a net realized gain of $14.8 million on derivatives, a net unrealized gain of $3.5 million on RMBS measured at fair value through earnings, a net unrealized loss of $19.1 million on derivatives, a net unrealized loss of $2.7 million on investments in Servicing Related Assets, and general and administrative expenses, compensation and benefits in the aggregate amount of $3.4 million. Earnings available for distribution attributable to common stockholders for the second quarter of 2025 were $3.2 million, or $0.10 per basic and diluted weighted average common share outstanding. For a reconciliation of GAAP net loss to non-GAAP earnings available for distribution, please refer to the reconciliation table accompanying this release. Net unrealized gain on the Company's RMBS portfolio classified as available-for-sale that are reported in accumulated other comprehensive income was approximately $0.3 million. Portfolio Highlights for the Quarter Ended June 30, 2025 The Company realized net servicing fee income of $9.0 million, net interest income of $2.6 million and other loss of $5.6 million, primarily related to unrealized losses on derivatives, an unrealized loss on investments in Servicing Related Assets and a realized loss on the RMBS portfolio, partially offset by a realized gain on derivatives and an unrealized gain on RMBS. The unpaid principal balance for the MSR portfolio stood at $16.6 billion as of June 30, 2025 and the carrying value of the MSR portfolio ended the quarter at $224.6 million. Net interest spread for the RMBS portfolio stood at 2.61% and the debt-to-equity ratio on the aggregate portfolio ended the quarter at 5.3x. The RMBS portfolio had a book value of approximately $1.1 billion and carrying value of approximately $1.2 billion at quarter-end June 30, 2025. The portfolio had a weighted average coupon of 4.97% and weighted average maturity of 28 years. In order to mitigate duration risk and interest rate risk associated with the Company's RMBS and MSRs, Cherry Hill used interest rate swaps, TBAs and Treasury futures. At quarter end June 30, 2025, the Company held interest rate swaps with a notional amount of $799.7 million, TBAs with a notional amount of ($413.5) million, and Treasury futures with a notional amount of $60.2 million. As of June 30, 2025, Cherry Hill's GAAP book value was $3.34 per diluted share, net of the second quarter dividend. Dividends On June 13, 2025, the Board of Directors declared a quarterly dividend of $0.15 per share of common stock for the second quarter of 2025. The dividend was paid in cash on July 31, 2025 to common stockholders of record as of the close of business on June 30, 2025. Additionally, the Board of Directors declared a dividend of $0.5125 per share on the Company's 8.20% Series A Cumulative Redeemable Preferred Stock and a dividend of $0.6413 per share on the Company's 8.250% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock for the second quarter 2025. The dividends were paid in cash on July 15, 2025 to Series A and B Preferred stockholders of record as of the close of business on June 30, 2025. Earnings Available for Distribution Earnings available for distribution ('EAD') is a non-GAAP financial measure that we define as GAAP net income (loss), excluding realized gain (loss) on RMBS, unrealized gain (loss) on RMBS measured at fair value through earnings, realized and unrealized gain (loss) on derivatives, realized gain (loss) on acquired assets, realized and unrealized gain (loss) on investments in MSRs (net of any estimated MSR amortization) and any tax expense (benefit) on realized and unrealized gain (loss) on MSRs. MSR amortization refers to the portion of the change in fair value of the MSR that is primarily due to the realization of cashflows, runoff resulting from prepayments and an adjustment for any gain or loss on the capital used to purchase the MSR. EAD also includes interest rate swap periodic interest income (expense) and drop income on TBA dollar roll transactions, which are included in 'Realized gain (loss) on derivatives, net' on the consolidated statements of income (loss). EAD is adjusted to exclude outstanding LTIP-OP Units in our Operating Partnership and dividends paid on our preferred stock. EAD is provided for purposes of potential comparability to other issuers that invest in residential mortgage-related assets. The Company believes providing investors with EAD, in addition to related GAAP financial measures, may provide investors some insight into the Company's ongoing operational performance. However, the concept of EAD does have significant limitations, including the exclusion of realized and unrealized gains (losses), and given the apparent lack of a consistent methodology among issuers for defining EAD, it may not be comparable to similarly titled measures of other issuers, which define EAD differently from us and each other. As a result, EAD should not be considered a substitute for the Company's GAAP net income (loss) or as a measure of the Company's liquidity. While EAD is one indication of the Company's earnings capacity, it is not the only factor considered in setting a dividend and is not the same as REIT taxable income which is calculated in accordance with the rules of the IRS. The following table provides a reconciliation of net income (loss) to EAD for the three months ended June 30, 2025 and March 31, 2025. Additional Information Additional information regarding Cherry Hill's financial condition and results of operations can be found in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 filed with the Securities and Exchange Commission on August 7, 2025. In addition, an investor presentation with supplemental information regarding Cherry Hill, its business and its financial condition as of June 30, 2025 and its results of operations for the second quarter of 2025 has been posted to the Investor Relations section of Cherry Hill's website, Cherry Hill will discuss the investor presentation on the conference call referenced below. Webcast and Conference Call The Company's management will host a conference call today at 5:00 pm Eastern Time. A copy of this earnings release and the investor presentation referenced above will be posted to the Investor Relations section of Cherry Hill's website, All interested parties are welcome to participate on the live call. A live webcast of the conference call will be available in the investor relations section of the Company's website at To listen to the live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. An online archive of the webcast will be available on the Company's website for one year following the call. To Participate in the Telephone Conference Call: Please dial into the call at least 5 minutes prior to start time. Domestic: 1-800-715-9871 International: 1-646-307-1963 Conference ID: 7589822 About Cherry Hill Mortgage Investment Corporation Cherry Hill Mortgage Investment Corporation is a real estate finance company that acquires, invests in and manages residential mortgage assets in the United States. For additional information, visit Forward-Looking Statements This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws, including, among others, statements relating to the Company's long-term growth opportunities and strategies and the Company's ability to expand its market opportunities and create its own Excess MSRs and its ability to generate sustainable and attractive risk-adjusted returns for stockholders. These forward-looking statements are based upon the Company's present expectations, but these statements are not guaranteed to occur. For a description of factors that may cause the Company's actual results or performance to differ from its forward-looking statements, please review the information under the heading 'Risk Factors' included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and other documents filed by the Company with the Securities and Exchange Commission.
Yahoo
4 days ago
- Business
- Yahoo
Spot Rising Stocks Like Rambus with Money Flows
RMBS makes state-of-the-technology semiconductor and internet protocol products, including memory, interfaces, security, smart sensors, and lighting. The company's second-quarter fiscal 2025 earnings report showed record quarterly revenue of $172.2 million, non-GAAP net income of $67.1 million, and increased quarterly per-share earnings guidance of up to $0.66. It's no wonder RMBS shares are up 40% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock. Rambus Seeing Inflows Institutional volumes reveal plenty. In the last year, RMBS has enjoyed strong investor demand, which we believe to be institutional support. Each green bar signals unusually large volumes in RMBS shares. They reflect our proprietary inflow signal, pushing the stock higher: Plenty of technology names are under accumulation right now. But there's a powerful fundamental story happening with Rambus. Rambus Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, RMBS has had strong sales growth: 1-year sales growth rate (+20.7%) 3-year sales growth rate (+20.2%) Source: FactSet Also, EPS is estimated to ramp higher this year by +15.6%. Now it makes sense why the stock has been generating Big Money interest. RMBS has a track record of strong financial performance. Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term. Rambus has been a top-rated stock at MoneyFlows for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis. It's garnered 20 outlier inflow signals since 2020 and is up 402% in that time. The blue bars below show when RMBS was a top pick on the Outlier 20 report…Big Money loves it: Tracking unusual volumes reveals the power of money flows. This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward. Rambus Price Prediction The RMBS action isn't new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio. Disclosure: the author holds no position in RMBS at the time of publication. If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights. This article was originally posted on FX Empire More From FXEMPIRE: Stock Analysis: Find Outliers Early with Money Flows Navigating China's Economic Challenges: A Q&A with Scope Ratings' Dennis Shen Bitcoin Outlook: Why the Price Surged and What's Next Germany: Successful Implementation of Infrastructure Investment Key to Growth, Fiscal Sustainability Buy Like Big Money: Inflows Make Core & Main Soar EU's Sluggish Economy Faces Moderate Growth Slowdown from US Trade Tensions Sign in to access your portfolio
Business Wire
5 days ago
- Business
- Business Wire
KBRA Assigns Preliminary Ratings to Towd Point Mortgage Trust 2025-CES3 (TPMT 2025-CES3)
NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 40 classes of asset-backed securities from Towd Point Mortgage Trust 2025-CES3 (TPMT 2025-CES3), a $464.3 million RMBS transaction, as of the Cut-off Date, sponsored by CRM 2 Sponsor, LLC and FirstKey Mortgage, LLC (FirstKey). The underlying pool consists of 5,136 closed-end second lien mortgages (CES; 100%) originated by Spring EQ, LLC (Spring EQ; 58.1%), Rocket Mortgage, LLC (Rocket; 21.2%), and NewRez LLC (NewRez; 20.7%). The CES collateral is characterized by fully amortizing, fixed-rate mortgages (FRMs) with a non-zero weighted average original credit score of 738 and an average original term of 245 months and is seasoned approximately one months. To access ratings and relevant documents, click here. Click here to view the report. Methodologies RMBS: U.S. RMBS Rating Methodology Structured Finance: Global Structured Finance Counterparty Methodology ESG Global Rating Methodology Disclosures Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above. A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1010724
Globe and Mail
6 days ago
- Business
- Globe and Mail
UBS to Pay $300M to Settle Credit Suisse Mortgage Securities Lawsuit
UBS Group AG UBS has agreed to pay $300 million to the United States Department of Justice (DOJ) to resolve a legacy matter related to the mis-selling of mortgage-linked investments by Credit Suisse in the United States. On Aug. 1, 2025, Credit Suisse Securities (USA) LLC agreed to settle all Credit Suisse's outstanding consumer relief obligations under the 2017 settlement for its residential mortgage-backed securities (RMBS) business. History of the UBS Lawsuit In January 2017, Credit Suisse reached a $5.28 billion settlement over its role in selling residential mortgage-backed securities between 2005 and 2007. The agreement required the bank to pay $2.48 billion as a civil penalty to the U.S. government, along with $2.8 billion in relief measures such as loan modifications for struggling homeowners, debt forgiveness and funding for affordable housing initiatives. The 2017 settlement was part of a broader initiative by the U.S. authorities to hold major banks accountable for their involvement in the 2007–2008 financial crisis. The DOJ raised allegations that Credit Suisse knowingly acquired and securitized low-quality mortgage loans while misleading investors about the associated risks of these securities. In the years leading up to the crisis, many large banks engaged in misconduct related to RMBS. The DOJ ultimately collected roughly $36 billion in civil penalties from 18 financial institutions for RMBS-related fraud during that period. UBS resolved its own RMBS case with the DOJ in August 2023, agreeing to pay about $1.44 billion in a civil penalty, roughly four months after it acquired Credit Suisse in a $3.25 billion government-orchestrated deal. Other Regulatory Probes Faced by UBS In May 2025, UBS agreed to pay $511 million to resolve a tax probe by the U.S. DOJ against Credit Suisse for preparing false income tax returns and tax evasion. The two-year investigation by the DOJ, initiated before UBS acquired Credit Suisse, found that Credit Suisse aided and assisted in tax evasion through its 475 offshore accounts to prepare false tax returns to conceal more than $4 billion from the US Internal Revenue Service (IRS). The DOJ reported that most of this misconduct occurred between 2014 and June 2023. Thus, an increase in claims against the company and regulatory fines over Credit Suisse's dealings is expected to increase litigation provisions in the near term. Over the past six months, UBS Group shares have gained 11.9% compared with the industry 's 17.6% rise. UBS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Litigations Faced by Other Finance Firms Last month, CNBC reported that Robinhood Markets, Inc. HOOD is under investigation by Lithuania's central bank, its lead regulator in the European Union (EU), regarding its newly launched tokenized equity products. The scrutiny follows Robinhood's recent launch of its Stock Tokens product across the EU, aimed at offering blockchain-based tokenized access to shares, including those of private firms. The offering sparked immediate questions from OpenAI, which openly distanced itself from HOOD's product. Robinhood defended the tokens by highlighting that they are backed by ownership interests designed to provide investors with indirect exposure to private markets. Nonetheless, regulators remain wary, specifically regarding the transparency and legality of how these digital instruments are offered to retail investors. In June, in a ruling, Anthony Trenga, U.S. District Judge in Alexandria, VA, announced that Capital One COF will have to face a lawsuit by social media creators who claim that the bank's free browser extension deprived them of commissions on sales generated through their content. According to the creators, the Capital One Shopping browser extension, which has more than 10 million users, is used to discover discounts. It erroneously reflected Capital One as the source of referral traffic at checkout, making it appear as if consumers had clicked the bank's referral links before making purchases. The creators alleged that this enabled Capital One to collect millions of dollars in commissions that rightfully belonged to bloggers, influencers, YouTubers and other content creators. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> UBS Group AG (UBS): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report
