Impac Mortgage Holdings Inc (IMPM)

[Enterprising Investor]

Not surprised.

[freddie me]

So, bankruotcy? IMPM in default https://ir.impaccompanies.com/news-releases/news-release-details/impac-mortgage-holdings-inc-discloses-loan-defaults-and

[Enterprising Investor]

2022 Annual Report

https://www.otcmarkets.com/otcapi/company/financial-report/375898/content

[sidedraft]

Did anyone else notice, a recent addition of IMPM shares, to your account?

[sidedraft]

Fidelity seems to have turned my IMPHO shares, into IMPM shares, times 1.25.

[sidedraft]

Today, early afternoon, ThinkorSwim saw fit to delete IMPHO.
The description of IMPM looks the same as IMPHO. I am confused.

Does anyone know why?

[dpsimswm]

Good afternoon! I just saw this post. Take a look at last Friday's SEC Filing. The remaining preferred will be converted under the existing terms on 11/15. Then, the balance sheet is nearly fixed.

[cgw]

That is called a cram down. Making an offer you can't refuse.

[sidedraft]

RE: Today's notice of corporate action (tender offer)

Does anyone have a clue what will happen, if I do nothing?
Reading the summary at Fidelity, I feel the lawyers have a gun to my head.

[cgw]

Live but not active.

[sidedraft]

Is this board live?

[dpsimswm]

By the way, you might not have noticed that the Impac common and preferred actually have positive book value. Restructuring the shares won't take an act of Congress or a Supreme Court ruling. We aren't relying on a senile old man who can't remember where his father was born to save us from permanent limbo status.

And the preferred have won a court room ruling for the B shares. The C shares have a strong chance on appeal, due to the realization that C shareholders were not given an opportunity to provide "written consents" or vote at a special meeting. Trial date is set for October on the appeals.

Meanwhile, none of the old management is still in place. And new management has accumulated excess proceeds from sales of MSRs to fund securitization of over $700 million in Non-QM. So, the picture of this stock is set to change.

[dpsimswm]

Can I ask you exactly what it is that I did to harm you?

If I recall, the only person that dumped anything is you. Now, you hang out on message boards trolling people. I notice when your GSE shares are down, you ignore us completely. Now you are doing a victory lap. I guess when the tables reversed, I should come find the hole you are lurking in and troll you.

Are you trying to get intel on this stock?

Rethinking your decision to bail on the group like the turd you are?

How many years has it been and you can't let it go?

[CatBirdSeat]

Looks like under $1 coming. Will it be time for another Sims On Finance Pump?

[CatBirdSeat]

Why does this keep dropping?

[CatBirdSeat]

Headed Lower...You Guys Still Here?

[CatBirdSeat]

Breaking A New 52 Week Low.... ‘Tis,‘tis...

Sucks for IMPHO Holders...

[jwnoble3]

Updated from 3Q 10Q

MSR values and retention trend...

2015 - $36.4 million at December 31, 2015
2016 - $131.5 million at December 31, 2016
2017 - $154.4 million at December 31, 2017
3Q 2018 - $181 million

MSRs rise in value as i-rates increase. These generated $10.1M for the company in the 3Q.

Current one-time write downs will provide additional tax benefits as well.

[Joe Stocks]

Yes there is!

Doc No./Seq No.: 126/9
File Date: 07/17/2018Entered Date:07/17/2018Decision:
Document Name: Order of Court
ORDERED that the Motion Regarding Court Opinion Dated December 29, 2017 Relative to Pfd Series B Issues be and it hereby is DENIED, Pierson Judge

Doc No./Seq No.: 132/2
File Date: 07/17/2018Entered Date:07/17/2018Decision:
Document Name: Judgment Order of Court
Judgment is entered in favor of Defts Joseph R. Tomkinson, William S. Ashmore, Todd R. Taylor, Ronald M. Morrison, Leigh J. Abrams, James Walsh, Frank P. Filipps and Stephan R. Peers on all claims asserted against them in the complaints of Pltff Curtis Timm and Pltff Camac Fund LP.Judgment is entered in favor of Deft Impac Mortgage Holdings, Inc on the claims asserted in Counts II, III and V of the complaint of Pltff Curtis Timm and the claims asserted in Counts II and III of the complaint of Pltff Camac Fund LP.Impact is hereby ordered to hold a special election in accordance with Section 6(b) of the Articles Supplementary within sixty (60) days of the date of this order.It is hereby adjudged, ordered and decreed that Section 3(d) of the Articles Supplementary requires Impac to pay divdends on Series B shares for the first, second and third quartersof 2009This judgment is final inaccordance with rule 2-602 (b).Costs shall be evenly divded among the parties, Pierson Judge

[Joe Stocks]

IMPHP moving up. News?

[jwnoble3]

MSR values and retention trend...

2015 - $36.4 million at December 31, 2015
2016 - $131.5 million at December 31, 2016
2017 - $154.4 million at December 31, 2017
1Q 2018 - $174.07 million

These alone are providing Impac w/ $40M+ annually.

[jwnoble3]

https://seekingalpha.com/article/4179464-impac-board-c-suite-completely-overhauled-ahead-sale

[sidedraft]

This is the activity I see on Quotestream:

Time EDT	Price	Size 
 6/1/2018 14:40	$4.90 	100 
 6/1/2018 13:51	$4.65 	200 
 6/1/2018 13:51	$4.66 	100 
 5/29/2018 12:34	$4.90 	100 
 5/25/2018 11:51	$4.90 	100 
 5/25/2018 11:49	$4.90 	100 
 5/24/2018 14:58	$4.85 	2,500 
 5/22/2018 13:32	$5.15 	25 
 5/22/2018 13:08	$5.00 	100 
 5/22/2018 11:49	$4.93 	22 
 5/18/2018 12:33	$5.00 	200 
 5/18/2018 12:23	$5.00 	157 
 5/17/2018 14:33	$4.90 	385 
 5/17/2018 13:29	$5.00 	100 
 5/16/2018 14:28	$4.85 	90 
 5/16/2018 12:33	$4.90 	75 
 5/16/2018 10:48	$4.95 	235 
 5/15/2018 12:34	$5.00 	200 
 5/9/2018 15:16	$4.95 	150 
 5/9/2018 09:45	$5.00 	100 
 5/9/2018 09:43	$5.00 	100 
 5/9/2018 09:43	$5.00 	80 
 5/9/2018 09:42	$5.00 	100 
 5/9/2018 09:42	$5.00 	700 
 5/4/2018 13:27	$4.90 	200 
 5/4/2018 12:50	$5.15 	200 
 5/2/2018 14:33	$5.15 	125 
 5/2/2018 13:53	$5.15 	300 
 4/27/2018 15:01	$5.10 	300 
 4/27/2018 15:01	$5.10 	300 
 4/26/2018 12:25	$5.00 	100 
 4/25/2018 15:58	$4.90 	500 
 4/25/2018 15:44	$4.90 	50 
 4/25/2018 15:44	$4.90 	220 
 4/25/2018 13:09	$5.10 	25 
 4/25/2018 12:36	$5.10 	200 
 4/24/2018 09:53	$4.90 	500 
 4/20/2018 14:36	$5.15 	500 
 4/20/2018 10:18	$5.00 	500 
 4/19/2018 14:42	$5.00 	100 
 4/19/2018 13:49	$5.15 	150 
 4/19/2018 13:26	$5.00 	25 
 4/19/2018 13:04	$5.00 	100 
 4/19/2018 13:03	$5.00 	200 
 4/19/2018 12:48	$5.05 	100 
 4/19/2018 12:48	$5.05 	100 
 4/19/2018 10:01	$5.15 	29 
 4/18/2018 15:59	$5.15 	100 
 4/18/2018 15:58	$5.05 	200 
 4/18/2018 15:54	$5.05 	200 
 

[Victory2]

New to the Board.... sorry for my Ignorance...
but was wondering about the IMPHO Units?
In my TD-Ameritrade Account it shows no Trading Activity...

Did I miss something?

Thanks for all your Help

[Joe Stocks]

David, I just saw this. What does it mean?? Do you know what was being reconsidered?

Open Court Proceeding
4/16/18 Plaintiff's motion to reconsider the court's opinion dated December 29, 2017 relative to Pfd B issues hereby heard and denied. (Pierson, J)4/16/18 Plaintiff's motion to resolve remedies regarding dividends hereby heard and held sub curia. (Pierson, J)4/16/18 Order to be filed. (Pierson, J)4/16/18 File in chambers. (Pierson, J)

Sub Curia is a Latin term which means “under law.” Sometimes a court may hold a matter under consideration, awaiting something to happen, like waiting for parties' filing of some documents or to write an opinion.

[Joe Stocks]

David, Court hearing today, yes?

[dpsimswm]

Hey Joe,
I don't pay for the subscription, so I can't message you privately.

Do you mind sending me an email at david . sims321 at gmail?

[Joe Stocks]

IMPHP- FYI, 10-K filed (extracts):
http://ir.impaccompanies.com/phoenix.zhtml?c=119470&p=irol-sec

"On December 29, 2017, the court denied the Company’s motion for summary judgment, granted the Plaintiffs motion for summary judgment, and stated it would schedule further proceedings to determine the appropriate relief which may include reinstating the Series B Preferred Stock holders rights and voiding the 2009 amendment, resulting in (among other possible ramifications), the reinstatement of dividend rights which have not been declared or paid since the 2009 amendment, the suspension of common dividends and the right to elect two members to the Board of Directors. The Company intends to appeal the decision.”
We are subject to a purported class action lawsuit relating to our Series B Preferred Stock in which holders are seeking cumulative dividends, unpaid dividends, certain restrictions on our actions, including the ability to pay common stock dividends, and the election of two directors by the preferred holders. In December 2017, we received an unfavorable court ruling that the rights, preferences and terms of the Series B Preferred Stock prior to the 2009 closing of the tender offer and consent solicitation remain in effect, that the 2009 amendments were ineffective, and the 2004 rights remain in effect. We intend to appeal the decision. If not reversed, the decision affects the rights of the Series B holders to receive, when and as authorized by the Board of Directors, cumulative preferential cash dividends at a rate of 9.375% of the $25.00 liquidation preference per annum (equivalent to a fixed annual amount of $2.34375 per shares) payable on a quarterly basis. Further, plaintiffs have presented post-decision arguments that Impac is required to pay three quarters of dividends to Series B stockholders and to accrue all unpaid dividends. In addition, under the Series B Preferred Stock terms prior to the 2009 amendments, whenever dividends are in arrears for six or more quarters, whether or not consecutive, the Series B Preferred Stock will be entitled to call a special meeting for the election of two additional directors. The 2004 rights also provide for certain other voting rights prior to amendment of any provisions of our charter so as to materially and adversely affect the Series B Preferred Stock, or approve a merger or similar transaction unless the Series B Preferred Stock remain outstanding and materially unchanged. We would also be prohibited from paying any dividend on our common stock until dividends on the Series B Preferred Stock are paid in full. Appeal of the court ruling will continue the cost and expense related to defending this lawsuit and diversion of our management’s efforts and attention from ordinary business operations in order to address the claims. This court ruling and the possible judgment may have a material adverse effect on our financial condition or results of operations.

[Joe Stocks]

How do you calculate book value for preferred shares? IMH only has about $5 per share tangible book value. Book value obviously does not equate to market value or "worth". Worth would be what someone would be will pay for those shares at market. Do you mean book value, or are you talking about face value? I am confused with your terminology.

[dpsimswm]

Regarding the lawsuit, I don't know many of the answers. The court filings are available through the clerk of the court.

Regarding IMPHO, the book value per share is $25. That's what it is worth. Have a great week!

[Joe Stocks]

Dave Sims, Perhaps you ave an answer for this. I just posted this comment to Darren's SA article.


Hi Darren, I have been following and commenting on these preferred shares from the beginning on various message boards. I have always been a proponent of the B series (IMPHP) shares having more value over the c series (IMPHO) I held shares of IMPHP up to maybe a year or two ago as this case seemed to never be coming to and end. After TIMMS received the memorandum opinion and order in January 2013 I thought it would not be much longer to get a decision on remaining counts. After another couple of year I gave up. See https://www.courts.state.md.us/sites/default/files/import/businesstech/pdfs/mdbt1-13.pdf
I am currently interested in revisiting. I have a couple comments.

1. In the above referenced link from the court they refer to the class action as "In this purported class action suit". The word purported bothers me. IMH uses the same language in their most recent 10K. 'purported' means; appear or claim to be or do something, especially falsely. Do you know if this lawsuit actually received class action status, or does it only benefit the named plaintiffs? I have not been able to find an answer. My understanding is that you can put class action in your lawsuit as much as you want, but the court must rule that it is a class action suit.

2. I think you are wrong about TIMMs settling for shares. I understand he is over 80. IMO, his settlement now is for his heirs. If he gets a cash judgement and settlement of rights there is really no reason for him to settle for less. His judgement becomes a lien on assets. He could garnish IMH's checking accounts. I could be wrong but I think a judgement has priority over unsecured debts. But, if he does settle for debt I think it will be for a premium of shares, not a discount. Banking on the appreciation of shares after the overhang is removed is not to TIMM's benefit when he has options that put IMH over a barrel.

I think a judgement could be very detrimental to IMH common. I think IMPHO shareholders gave up many of their rights and have no more value than common holders. I see no incentive for IMH to convert IMPHO to common. IMPHP is the only potentially profitable trade here. But if this lawsuit is not a classaction status the IMPHP shares are worth no more than IMPHO except for the named plaintiffs.

Can you confirm this is a classaction lawsuit and all holders of IMPHP shares are a party to it?

This is what IMH last 10k said "We are subject to a purported class action lawsuit relating to the tender of our preferred stock that is seeking cumulative dividends, unpaid dividends, certain restrictions on our actions, including the ability to pay
common stock dividends and the election of two directors by the preferred holders."
That one word, 'purported', has kept me from backing up the truck on this one. My how I would love to know if it is or isn't.

[dpsimswm]

JW, the value creation story is now getting derailed by the preferred. That's the reality and I hope the company realizes it. We've done our best to be team players, but there are other forces at work here.

[jwnoble3]

All parties won the right to litigate on. Better for all if it gets equitably settled.

The real story here is the value creation in 2018...

These values rise as i-rates increase:
- Servicing rights 3Q value ~$159 million
- servicing portfolio continues to grow, soon will be nearing almost $10 million per quarter in servicing income in 2018
- September 30, 2017, increased servicing portfolio from the end of the second quarter by 7%, bringing the portfolio to approximately $15.7 billion

These further strengthen the balance sheet:
- last year's Capital Trust exchange to common.
- Cash Call earn-out is over and Impac has a good amount of tax-loss carry forwards to utilize.
- Beginning in 2018, the contingent consideration will no longer be on Impacs balance sheet
- restructure/retire/refi preferreds

[dpsimswm]

There's a hit piece on it's way through Seeking Alpha. Just got off the phone with a guy trying to build a case against these shares. I recommend you wait a few days if you are looking to buy these. Someone will probably sell some shares to you.

[dpsimswm]

There are there main groups. Camac Fund, Curtis Timm (and his followers), and Impac Mortgage.

Impac and Timm will appeal.

[gerber]

Thanks for you info.

[Joe Stocks]

Who are the other two parties? I thought it was just IMH and the IMPHP shareholders.

Thanks for the SA link, Dave!

[dpsimswm]

If only one party wins, the fight continues. The other two parties plan appeals....

[dpsimswm]

https://seekingalpha.com/instablog/379412-darren-mccammon/5105213-impac-preferred-series-b-imphp?app=1&uprof=70&isDirectRoadblock=false

[dpsimswm]

I do think that IMHPO should at least be on par with IMH common at minimum

BINGO... DING DING DING

You guys might not have noticed the new member of the BOD that joined up last year. I encourage you to research the historic restructuring at Dynex link.

IMPHO IMPHP

[Joe Stocks]

Timms Lawsuit

Case number 24-C-11-008391
You can search court docs here: http://casesearch.courts.state.md.us/casesearch/inquiry-index.jsp

Did the above but can't find recent rulings. Just goes to Sept 2017.
Can anyone post the decision? Or how to find it.

TIA

[Joe Stocks]

Thanks, CatBirdSeat! It has been a awhile. I hope you are doing well!

It took too damn long for me and I got out a year or so back. I simply had too much crap in my portfolio at the time and felt I could invest the funds in something with a better risk/reward ratio. I got in early so I did alright.

Basically this boils down to the IMPHO holders voted to accept the sucky terms of the tender offer, and IMPHP shareholders did not. I don't see putting money into IMPHO. They dug their grave. The terms of the tender offer are very clear. They basically just have liquidation rights. If it gets to bankruptcy (which I doubt) more than likely the bondholders will get everything. I don't see any reason to own IMPHO or IMH. The payout to IMPHP holders I tyhink should put a pretty good dent in earnings. That said, I have not looked at IMH for months...perhaps years. I do think that IMHPO should at least be on par with IMH common at minimum. But, the market doesn't see it that way.

Is there anyone that can give me a link to a copy of the judges ruling? It would be most appreciated!

Happy trading, Joe

[CatBirdSeat]

Bravo Joestocks. You Won!

[dpsimswm]

Could be that these loans just didn't conform to whatever security they planned to issue too....

[dpsimswm]

Deephaven Readies New Nonprime MBS with Mortgages from Angel Oak, Impac, 61 Others?
By Brandon Ivey
[e-mail]

Deephaven Mortgage is set to issue a $308.2 million nonprime mortgage-backed security, according to a new presale report. Deephaven Residential Mortgage Trust 2018-1 will include non-agency loans funded by Angel Oak Mortgage Solutions and Impac Mortgage Holdings, among others.

The deal is largely backed by adjustable-rate mortgages, including some with interest-only terms. Purchase mortgages account for 67.6 percent of the issuance. Roughly 20.4 percent are loans on investment properties.
The mortgages have an average credit score of 693, an average combined loan-to-value ratio of 74.8 percent and an average debt-to-income ratio of 36.2 percent. Morningstar Credit Ratings and S&P Global Ratings assigned preliminary AAA ratings with credit support from subordination of 35.9 percent on the senior tranche.

Mortgages from 63 lenders were included in the deal led by Angel Oak with a 19.9 percent share and Impac (12.3 percent). While Impac has been originating non-QMs the past few years, its production generally has not found its way into non-agency MBS.

-----------------------

This may mean that Impac's previously announced Non-QM MBS is not happening. Impac was saying that they would issue $300 or $400 million themselves.

[dpsimswm]

Judge P ruled on 12/29 that the B Series had a right to receive cumulative dividends and elect two board members. Impac will appeal. So will Curtis Timm as a holder of IMPHO.

With $21 in cumulative dividends, a full valuation on IMPHP would be about $46. IMPHO is worth $25, in my opinion. The greater risk reward is with IMPHO right now. That's my belief.

Also, I believe the common shares have nearly the same risk/reward as IMPHO at the current price. IMPHO may be slightly undervalued in comparison.

[gerber]

Why is there such a big price difference between IMPHO and IMPHP ?

[dpsimswm]

Administrative overhead is down, with the resignation of Ashmore. That savings is several million per year. Perhaps now they can afford to pay the preferred holders. A year ago, only three profitable companies failed to pay dividends to preferred stockholders.

https://seekingalpha.com/article/4029584-open-letter-board-directors-impac-mortgage


$IMPHP $IMH $IMPHO

[dpsimswm]

Welcome.

More to come.

[cgw]

Thanks for the informative update.