Nothing wrong with being a vulture.
Followers | 21 |
Posts | 775 |
Boards Moderated | 0 |
Alias Born | 01/27/2012 |
Twitter Profile: | Temporarily Unavailable |
Follow on Twitter: | Follow @ Temporarily Unavailable |
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
$114 Billion of MSRs on the Auction Block Now
By Paul Muolo
pmuolo@imfpubs.com
Citigroup is once again “re-marketing” a $61 billion package of mortgage servicing rights while Walter Investment Management Corp. said it is on the verge of buying $62 billion of MSRs, according to new public statements and information provided by investment banking officials.
Meanwhile, Interactive Mortgage Advisors is working on three deals totaling $11 billion, which means roughly $114 billion of product may soon find a new home before yearend.
Citigroup has been trying to sell the $61 billion since early in the fall. Investment banking officials say an earlier sale of that package fell apart and is now being “recast.” Much of receivables are legacy in nature. Citigroup declined to comment.
Walter, meanwhile, said it is executing on a previously announced $62 billion purchase of MSRs, and signed a “definitive agreement” to buy at least $30 billion in Fannie Mae receivables. Walter did not disclose the seller on the $30 billion, but it’s believed to be Flagstar Bancorp. Flagstar declined to comment.
Meanwhile, the Federal Housing Finance Agency is beginning to eye large MSR transfers more closely, industry advisors said. For more on that story, see the new edition of Inside Mortgage Finance, available online later in the week.
Watt at FHFA could revive 40-year mortgages: analys
With Mel Watt at the head of a federal housing-finance regulator, it may be easier for borrowers to get cheaper mortgages and the recently flagging housing-market recovery could get a boost, according to a Wednesday analyst note.
The freshly-confirmed Watt, President Barack Obama’s pick to lead the Federal Housing Finance Agency, is expected to support efforts to increase homeownership through his regulation of mortgage buyers Fannie Mae FNMA and Freddie Mac FMCC , wrote analyst Jay McCanless of Sterne Agee, a Birmingham, Ala.-based brokerage.
In May, the FHFA had limited the government sponsored enterprises’ acceptable purchases, starting Jan. 10, to those that meet guidelines deemed by regulators as particularly safe, keeping Fannie and Freddie away from mortgages such as those that are interest only or with 40-year terms. But Watt’s support of homeownership could mean that the FHFA allows the GSEs to to buy loans crafted to make purchases more affordable.
“We believe Mr. Watt could revive mortgages designed to be more affordable…which could widen the pool of potential home buyers and spur additional housing demand,” McCanless wrote in a research note.
However, conflicting forces are at work on the housing market. The Senate’s Tuesday confirmation of Watt, a North Carolina Democrat, came just one day after the FHFA told Fannie and Freddie to raise fees for insuring mortgages, a move expected to curb some home borrowing.
But even without Watt at the FHFA’s helm, there’s incentive for lenders to offer a broader array of mortgage products. Since mortgage rates started rising in early May, refinancing applications have plunged, and banks are looking to ramp up revenue from originations of mortgages to purchase a home.
“We view the lack of mortgage refinance business in 2014 versus 2013 as a potential catalyst for an increase in purchase mortgage lending by banks,” McCanless wrote. “We also see the national housing price appreciation and the continued rise in employment over the last two years as catalysts for an increase in purchase mortgage lending over current levels.”
Indeed, a recent report from the Federal Reserve indicated that some banks are easing standards of mortgages.
“Most banks reported that the volume of mortgage refinancing applications received has fallen since the spring, and, in response, some banks have reportedly changed their lending policies and activities in the market for home-purchase loans,” according to the Fed’s report.
http://blogs.marketwatch.com/capitolreport/2013/12/11/watt-at-fhfa-could-revive-40-year-mortgages-analyst/
M&A: IMH Sells a Servicing Platform, Flagstar Finally Unloads MSRs?
By Paul Muolo
pmuolo@imfpubs.com
Impac Mortgage Holdings has inked a deal to sell its servicing affiliate, AmeriHome Mortgage Corp., for an undisclosed sum and without identifying the buyer.
In a press statement, the nonbank called the mortgage servicing platform a “redundant” operation. As part of the sale, the buyer will also get $700 million in mortgage servicing rights, and licenses to service loans for Fannie Mae, Freddie Mac and FHA. The company said it will continue to service loans through its Excel Mortgage Servicing affiliate.
In a statement, IMH said the sale – expected to close in early 2014 – will help the company “streamline” its mortgage operations and provide “additional cash.” In the third quarter, IMH lost almost $5 million.
Meanwhile, investment banking officials told Inside Mortgage Finance that Flagstar has finally sold some of its MSRs, reportedly to a REIT. At press time, no other details were available. A Flagstar spokeswoman could not be reached for comment. Normally, the company does not comment on such matters.
Other areas of interest: Servicing, Secondary/MBS, Mergers & Acquisitions, Fannie, Freddie, Ginnie Mae/FHA, Mortgage Lending & Servicing
http://www.insidemortgagefinance.com/imfnews/1_241/daily/impac-mortgage-sells-servicingaffiliate-1000025380-1.html?ET=imfpubs:e4039:55479a:&st=email&s=imfnews
Impac Mortgage Holdings, Inc. Announces Sale of AmeriHome Mortgage Corporation
Business Wire
Impac Mortgage Holdings, Inc. 12 hours ago
IRVINE, Calif.--(BUSINESS WIRE)--
Impac Mortgage Holdings, Inc. (NYSE MKT:IMH), (the “Company”) today announces the sale of its fully licensed and agency approved seller/servicer subsidiary, AmeriHome Mortgage Corporation (“AmeriHome”). This transaction is expected to close early in the first quarter of 2014 at a significant gain. The sale is subject to change of control requirements by the state, and government agencies including Fannie Mae, Freddie Mac and Ginnie Mae. The transaction includes the sale of AmeriHome’s primarily agency servicing portfolio of approximately $700 million in unpaid principal balance, but will not affect the ongoing operations of Excel Mortgage Servicing, Inc., dba Impac Mortgage, the Company’s nationally licensed mortgage originator that is also a Fannie Mae, Freddie Mac, and Ginnie Mae approved seller/ servicer. Excluding AmeriHome, Excel’s originations are estimated to be $2.7 billion in 2013 and the retained portion of the servicing portfolio is estimated to be $2.5 billion by December 31, 2013. Currently, Impac Mortgage is originating over $500 million per quarter which are predominately Ginnie Mae, Fannie Mae and Freddie Mac eligible loans.
The sale of AmeriHome, which was a redundant mortgage operational platform, will not only improve near term cash balances and profitability but will also help the Company to streamline its mortgage operations. The additional cash from the sale will allow the Company to continue to build its mortgage servicing portfolio.
Joe Tomkinson, Chairman and Chief Executive Officer, commented, “We believe the sale of AmeriHome mortgage lending platform will give the Company additional options as we navigate through the current challenging mortgage market. Looking forward, our goal by the first quarter of next year is to further position the Company to take advantage of opportunities in the mortgage lending market as new regulatory rules take effect.”
http://finance.yahoo.com/news/impac-mortgage-holdings-inc-announces-011700612.html
Header section above.
I recently became a moderator for the board. I made a small tweak to the header section above today and was looking to see if anyone noticed. I was thinking we could link important documents up there. I've got the CNBC link from earlier today with a date stamp.
Anyone object to keeping this and adding a tasteful list of links in date order from newest to oldest above?
Video: CNBC interview 12/2/13
Former CFO discusses the legal battle.
Video was posted to Google groups. I bookmarked the most important part from today's interview.
I think I heard a pin drop.
Heavy criticism for GSE recap proposal
"In the long history of bailout deals, no heist of the U.S. taxpayer would approach this one in cynicism and chutzpah," writes Jonathan Laing of Bruce Berkowitz's buyout plan for Fannie (FNMA +5.7%) and Freddie (FMCC +5%). One analyst calls it a "three-card monte" scheme in which the preferred holders want taxpayers to pay them off at par, or turn over the keys to the companies wildly valuable operations for little more than a $17B rights offering.
Yes, Treasury will have realized $187B in dividends from the GSEs by year end - equal to the amount of the bailout - but that's "merely fair recompense for the enormous risks taxpayers took." Also, more than $80B of the $187B is the write-up of deferred tax assets - it will only be realized if the companies operate profitably for many years, says Laing.
http://seekingalpha.com/currents/post/1440261?source=email_rt_mc_readmore
Link to the Offering Circular
http://www.fanniemae.com/resources/file/ir/pdf/stock-info/series_T_05152008.pdf
13.3% yoy gain in housing prices
http://www.star-telegram.com/2013/11/26/5371212/home-prices-rose-at-slower-pace.html
The Standard & Poor’s/Case-Shiller 20-city home price index rose 0.7 percent from August to September, down from a 1.3 percent gain from July to August
Read more here: http://www.star-telegram.com/2013/11/26/5371212/home-prices-rose-at-slower-pace.html#storylink=cpy
Home Prices up 13.3% YOY in September
"Nationwide, prices jumped 13.3 percent from September 2012, the fastest year-over-year gain since February 2006."
Read more here: http://www.star-telegram.com/2013/11/26/5371212/home-prices-rose-at-slower-pace.html#storylink=cpy
-----------
The market expected a 13% increase.
http://biz.yahoo.com/c/e.html
NEWS: Building Permits in U.S. Jump to Five-Year High
By Victoria Stilwell - Nov 26, 2013 12:16 PM ET
Building permits climbed in October to the highest level in more than five years, signaling the U.S. residential real-estate market will strengthen in 2014.
Applications (NHSPATOT) for new construction rose 6.2 percent to a 1.03 million annualized rate, beating all forecasts in a Bloomberg survey of economists and the highest since June 2008, according to Commerce Department figures issued today in Washington. Other data showed property values last quarter increased by the most in more than seven years.
http://www.bloomberg.com/news/2013-11-26/building-permits-in-u-s-jump-to-five-year-high.html
===================
In this environment, it's hard to see how the losses could continue at Impac.
"In some aspects, so goes the common, so goes the preferred."
Please refer to the NBG and NBG-pa charts 1 year prior to the offering made to preferred holders in Summer 2013.
Inverse correlation there.
Joe,
The common is more marketable. I would be interested in owning it when it has legal right to some of the equity. This could be accomplished through earnings growth, or restructuring.
Didnt Gingrich have this plan when he ran in 2011?
Yawn. I guess everyone has lost interest in this stock until 2014. See you guys next year. Send me a note, if you want to chat.
FMCKJ $8.4665* + 0.0865 + 1.03% on 1,250,194 shares
FNMAS $8* +0.05 +0.63% on 1,079,473 shares
FNMAT $9.457* +0.117 + 1.25% on 1,916,845 shares
http://www.nasdaq.com/symbol/fmckj/after-hours
http://www.nasdaq.com/symbol/fnmas/after-hours
http://www.nasdaq.com/symbol/fnmat/after-hours
Anyone want to explain the after hours volume and prices on FNMAT, FNMAS, and FMCKJ?
How much do you like that dog? Maybe if you squeeze really hard, we hit RV....
I have not reduced my GSE Preferred position in several months. I don't own Lehman shares. I don't post on the Lehman boards.
Good night....
Great video.
I wonder why this doesn't show up in the news feed for the stock.
In the past, I have written in to message boards to go "on the record" and let people know I have sold out, but it's usually one message and a goodbye. Are you looking for someone to talk you out of selling? What is your motivation for a long message? Why hang out on the Lehman boards?
Lifelong bureaucrats don't take risks. There is an element of risk to every plan and he will not take action unless backed into a corner. He also cant see win win scenarios.
Common and preferred moving higher in premarket.
I didnt see a conversion ratio. But the fact that the hedge funds hold common shares would lead me to believe it will be generous for the common.
It would be a good idea to hold a mix of both shares if this plan goes through. The conversion ratio is the key.
As soon as a ratio is given the prices will move up and down.
When? After their boards were replaced and management removed?
HAMP and HARP were implemented in 2009 I thought.
If recap isnt an option they should redeem all junior preferred and then pay liquidating dividends to the common.
The govt needed c-ship to get control and implement Hamp and Harp.
Back out the 10% interest and it is half that amount. Basically if loss reserves were less conservative and more realistic there would have been no Conservatorship.
"And research conducted by the St. Louis Federal Reserve Bank determined that the affordable housing goals were not the cause of the subprime mortgage boom."
So if it wasnt affordable housing goals and it wasn't GSE conforming loans credit quality, it has to be Wall Street.
Get on with restructuring already.
I want to know what the Fox says.
Here are the results for the people that went to the link.
12 responses total
Do you think that GSE reform will happen by year-end, as the politicians keep claiming?
No - 12 responses
Will GSE preferred stockholders receive full redemption value?
Yes - 11 responses
No - 1 response
Is the outcome for GSE reform already determined?
Yes - 4
No - 8
Will Fannie and Freddie be merged?
Yes - 1
No - 8
Not Sure - 3
Will one of the GSEs exit Conservatorship before the other?
Fannie - 1
Freddie - 5
No - 3
Not Sure - 3
What will happen with the MBS guarantee?
Becomes Explicit - 5
Goes back to Implicit - 6
Goes away forever - 1
I think it is pretty clear that common shareholders don't have a lot of confidence in the company either. Evident by the share price action. Management can secure a win-win for all shareholders that would bring them out of the housing crisis for good.
I'm going to need some time to read through your post and consider it, but I would say this, we know that the $25 liquidation preference is intact.
Maybe this will cause a run-up to 40% RV?
FMCKJ and FNMAS are at 30% now.
I think I may have put $10. But like you said, that is without any action taken by the company.
What about the breach of contract claim?
What about dividends? I don't believe a dividend can be declared for the common until there is more than $51.767 million in equity book value (total liquidation value).
I will give it a day and then post the result.
I realized I can make a survey and just post the link.
https://www.surveymonkey.com/s/LYGG6K2