Cherry Hill Mortgage Investment is a small internally managed mortgage REIT that invests in two types of residential mortgage assets: Agency RMBS and mortgage servicing rights (MSRs). The RMBS portfolio consists primarily of whole-pool pass-through certificates backed by Fannie Mae, Freddie Mac, or Ginnie Mae, and stood at roughly $782M as of Q3 2025. The MSR portfolio — the contractual right to collect and administer payments on mortgage loans in exchange for a servicing fee — had an unpaid principal balance of approximately $16.2B and a market value of roughly $219M as of Q3 2025. Cherry Hill acquires MSRs through its licensed subsidiary Aurora Financial Group, strips out the "Excess MSR" (the portion of the servicing fee above subservicing cost), and holds those at the REIT level for tax efficiency. Cherry Hill does not directly service loans, contracting instead with third-party subservicers. Cherry Hill earns net interest income — the spread between asset yields and financing costs. RMBS is financed with short-term repo agreements at roughly 5.3x leverage. MSR income comes from the servicing fee strip net of subservicing and financing costs. The two asset classes act as a natural hedge: rising rates hurt RMBS prices but increase MSR values. Cherry Hill completed a management internalization in November 2024, eliminating external management fees. Cherry Hill also holds a minority stake in Real Genius, a digital mortgage origination platform, which management sees as a potential future source of MSR flow.