Note Thomas Akin, ex COB/CEO (his HF Talkot Capital) of Dynex Capital DX (sat on DX Board with Barry Igdaloff for years) is a large shareholder in NOVC, DX and IMH. Thomas Akin is an expert in MBS/Non-QM aka Subprime mortgage lending, just like DX investors Barry Igdaloff, Howard Amster and Fortress COB Wesley Edens and esp Fortress Head of Credit Peter Briger ex head of Goldman Sachs special situation group. His GS relationship is probably how Fortress was allowed to own AIG ex subprime lending business which they ran as LEAF Silverleaf aka bought CitiBank same business One Main adopted new symbol OMF. Fortress sold OMF to Apollo for 1.4B they owned 40% of common. Is any NOVC investor noticing a famous investing tactic Fortress makes money and hides their ID by operating under other entities. Fortress even owned 25% of IMH at one time. They sold NationStar NST to COOP Mr. Cooper for 3.8B, per SEC docs Fortress owned 68% of NST now called Mr. Cooper ex WaMu Washington Mutual holds 7B NOLs. Same COOP 17% owned by KKR.
Thomas Akin with his HF Talkot Capital owns 1.6m IMH shares (the largest position/Mr. Akin is also a Board member at IMH. IMH is going full bore securitizing subprime mortgage loans now called Non_QM, with AAA Ratings from S&P the same asset class NOVC holds call rights on most of $3B portfolio (right to call back collateral assets Non-QM aka Subprime Mortgages & resecuritize just like IMH at NIMs north of 400 Bpts) https://finance.yahoo.com/quote/imh
FACT NOVC last 10Q Q2 2019 stated the call rights are worthless page 7 and they tried to find a bidder but could not. Evidence shows Michael Huang, Portfolio Manager at NRZ New Residential Investment Corp. (NYSE: NRZ) submitted to NOVC CEO a bid Dec 2018 for these CR. He spent months reviewing documents detached by NOVC from Bond Remittance Reports (PSA Pooling Service Agreement, Prospectus, Trust Agreements knowing Service Rights Trust Agreement sec 5.04 showed NOVC kept these Call Rights aka Cleanup Call Rights (SRTA is the P&S on NOVC sale 10.21.2007 of MSR to Saxon aka Morgan Stanley for $175M. How much could NOVC have collected if they sold the Cleanup Call Rights as well as MSR which NOVC carried at less then 100M Book Value).
Michael Huang stated there are many tactics an investors can use to monetize NOVC Call Rights such as Buying the Bonds themselves in NOVC $3B portfolio at BIG DISCOUNTS. Combining the Collateral Assets (very profitable mortgage loans that per NOVC own Press Release mid 2018 show coupons of 6% or more) with other bonds NRZ may have, etc..... I would suggest the CR could produce a dividend that propels the newco MREIT price per share. MH stated if you have the right experience these CCR are valuable.
For the record No investor has more experience with NOVC hidden values; MBS, CCR or NFI Brand then the investors controlling NOVC Cap Table aka Sr Debt Holders who are also now 25% of common shareholders and Mass Mutual Barings & other shareholders. NOVC Board needs to identify the investors who own NOVC Sr Debt now common.