Vice President/Portfolio Manager at Fortress Investment Group LLC · New York City
Michael Huang holds title Portfolio Manager at NRZ www.newresi.com but the reality is he is a Quant & Employee under Wes Edens and Peter Briger Co CEOs, COBs of Fortress that own all of NOVC only Sr Debt to exited Ch 11 4/19/19 with all back interest paid & compounded and own 31.3M NOVC common with Sr Debt partners EJF Capital aka White Mountains.
Truth is Huang carefully reviewed all of NOVC documents concerning $3B portfolio of RMBS, Non-QM mortgage loans with 600 Bpts WAC. Only Novastar Financial Inc. ex MREIT 100% owned by Novation Companies Inc. NOVC own these CCR cleanup call rights per Service Rights Transfer Agreement sec 5.04 (Bond Remittance Reports and per Edgar Reports PSA Pooling Service Agreements, Trust Agreements). After this review he declared the CCR very valuable stating NRZ and Fortress are the worlds largest counter party investor in CCR. Listen to CEO of NRZ reference CCR.
These rights allow only NOVC aka their dormant MREIT sub saved by Ch 11 Novastar Financial Inc. NFI to call back rich and seasoned collateral assets in $3B portfolio of RMBS Non QM mortgage loans. These collateral assets can be leveraged 15:1 like DX, NRZ, RWT deploy and garner NIMs of 500 Bpts (FFR 0%). The result of this MREIT practice would result in estimated annual dividend of $3.75/NOVC common share.
Michael Huang is on record as stating they (Fortress and the worlds largest CCR investor NRZ wwww.newresi.com) like to buy the actual bonds back in the portfolio before triggering the CCR.
I state with 100% conviction MREIT experts that own 75% of NOVC Equity including Wes Edens, Fortress, Manny Friedman of EJF Capital, (via CDOs (CDO Service Rights) they paid virtually nothing to control; Taberna and Kodiak. These CDOs conceal their identities courtesy of Igdaloff) Mass Mutual Barings owns 18% 19.3M shares and Barry Igdaloff (BI cabal own at least 36M shares in NOVC), Thomas Akin ex DX Chairman of the Board, both Board Members understand CCR cleanup call rights per Service Rights Transfer Agreement sec 5.04.
DX Board Member for 20 yrs Barry Igdaloff serving since 2000 control NOVC and understands this practice Stone Cold (per DX 8K filed 9-3-20 Igdaloff resigned leaving $126k in board fees from DX after restructuring DX with Fortress, Wes Edens (via Fortress ownership of Capstead Mortgage CMO). Days after resigning from DX Board Igdaloff was appointed Chairman of the Board at Novation Companies, Inc. NOVC.
Record Barry Igdaloff denied all knowledge of CCR and Service Rights Transfer Agreement (attached to NOVC own 10Q) although in same breath David Pointer blurts out did Bill Wallis Barings Director representing Mass Mutual 19.3M common shares show you sec 5.04. Sec 5.04 is the specific section which proves NOVC aka NFI owned exclusively these valuable CCR.
Bill Wallis Barings Director assigned with the task of reorganizing NOVC so as to monetize NOVC NOL $730M and CCR stated NIMs of only 200 Bpts are economical. Thomas Finke ex CEO of Barings and officer Chief Investment Officer of Mass Mutual assigned Wallis this task. Wallis stated he wanted to copy KKR investment in COOP Mr. Cooper aka WMIH, WAMU (this was prior to Fortress selling Nationstar to COOP for $3.8B. Fortress owned 70%).