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Re: Note to IMH investors; Tom Akin/Talkot Capital, IMH Board Member & large investors in IMH NOVC & DXStatus of Non-QM Mortgage Loan Market and IMH interest in Non-QM mortgages is connected to NOVC by Thomas Akin, IMH Board Member and Major NOVC Common investor.NOVC owns Call Rights on 21 of 26 deals in $3.2B Portfolio of Non-QM Mortgage Loans (Collateral Assets). Novation Companies, Inc NFI OTCBB:NOVC owns Call Rights on 21 of 26 deals in $3.2B Portfolio of Non-QM Mortgage Loans (Collateral Assets). Click on this link to SRTA, section 5.04 of Serivce Rights Transfer Agreement between NOVC and Saxon, see section 5.04 It is clear from listen to IMH 2018 Annual Conference Call why Thomas Akin, his HF Talkot Capital are the largest shareholder in NOVC and IMH, see this link Listen to IMH public conference call YE IMH, esp 11:42 min into IMH conference call for YE 2018. IMH commitment to NON QM market is substantial and they are increasing their group of investors especially on wall street with HF and Alternative Investors (like Bill Wallis, Director of Alternative Investments and Thomas Finke, CEO designate, at Barings ). IMH is reallocating capital, investing in production and tools to increase NON-QM mortgage loan production. Shareholders already know IMH largest shareholder in also the largest shareholder NOVC Thomas Akin and his HF Talkot Capital. He owns the largest position in DX, IMH and NOVC. Thomas Akin sat on DX Board with Barry Igdaloff combined these two investors own at least 15% of NOVC Common and communicate with Mass Mutual Barings all the time. Chuck Gillman and Jeff Eberwein are supported by Mass Mutual Barings which have allowed 3 of Mr. Gillman designates to control NOVC Board. These 3 David Pointer, Lee Keddie, Howard Tim Eriksen have awarded themselves over last few weeks 3,666,666 RSU valued at 3 cts. Barry Igdaloff and major DX investors Howard Amster have picked up est 1.7M RSU each valued at 3 cts which adds up to 8.5M if you include RSU awarded Jeff Eberwein. Barry Igdaloff’s and NOVC Board do not appear to be representing their true intentions regarding NOVC Call Rights. Further Barry Igdaloff and David Pointer have verbally represented NOVC Call Rights are worthless. The call rights are very important in explaining why Barry Igdaloff and his co investors along with Mass Mutual Barings own 53% of NOVC Common, all capped out of buying more common by NOVC poison pill). I find it hard to believe Barry Igdaloff and his close relationship with Fortress in his DX investment did not know of the Service Rights Transfer Agreement SRTA section 5.04. I further find it hard to appreciate that he actually believed NOVC Cleanup Call Rights are worthless. NOVC owns the ability to call back very profitable and seasoned NON-QM mortgage loans on 21 of 26 deals in a $3.2B portfolio of Non-QM mortgage loans (these loans are seasoned and FAR MORE profitable than the $1.3B Non-QM production IMH did in 2018. Note IMH QM mortgage loan production in 2017 was $900M therefore IMH increased their Non-QM mortgage loans production by 46% Yr over Yr increase from 2017 to 2018. IMH commitment to NON-QM mortgage market is very clear despite the challenges in the Qualified Mortgage market. Q4 2018 Non-QM mortgage loans production continued this trend increase by 63% in Q4 vs same Qtr. in 2017. I would suggest every NOVC shareholder demand to know from Barry Igdaloff, (also DX Board Member) and Lead Board Member under Sarbanes Oxley SOX at NOVC what NOVC plan is for Call Rights in accordance with section 5.04 of Service Rights Transfer Agreement signed by NOVC CEO. In addition given the majority of NOVC Sr Debt received a windfall in Ch 11 aka Fortress NOVC shareholders deserve to know what these experts have planned for NovaStar Financial Inc. NFI (brand similar to NationStar which Fortress sold (Fortress owned 68% of NationStar and owns 67% of NOVC Sr Debt thus Fortress controlled the Creditors Committee in Ch 11) July 2018 for $3.8B to COOP/WaMu). NFI brand emerged April 2018 from Ch 11 bankruptcy. It has been one year and shareholders deserve to have an explanation from Barry Igdaloff who also sat on the board of DX with Thomas Akin who along with his HF Talkot Capital is the largest shareholder in DX, NOVC and IMH. Mr. Akin sits on the Board of Directors at IMH (owns 1.6m IMH shares more than Blackrock, Vanguard and Wellington) and communicates with Barry Igdaloff and his friends Chuck Gillman, Jeff Eberwein, Howard Amster and their big brother Mass Mutual Barings all the time. Further 11:45 min into the conference call they reference 2 Securitizations issued in 2018 with Starwood. Securitization STAR 2018-IMC2 which are 100% backed by NON QM mortgage loans. A third Securitization is planned by Q2 2019. IMH Non QM securitizations were AAA rated by S&P and the first two over subscribed 12:45. 13:10 minutes into the IMH YE public conference call IMH noted IMH has been selling $7.2B FNM and Ginnie Mae securitizations to delever the balance sheet but more important reallocate capital into NON QM mortgage market (NOVC Shareholders hold Cleanup Call Rights on 21 of 26 deals in 3.2B portfolio of very profitable/seasoned mortgage loans that probably dewarf the Non-QM mortgage loans generated by IMH. In addition NOVC owns NovaStar Financial Inc. NFI Non-QM mortgage brand that is one of very few that have survived next to NationStar that Fortress owned 68% and sold July 2018 to COOP/WaMu/WMIH for $3.8B. KKR owns 24% of COOP prior to NationStar acquisition and 17% after. Fortress owns 67% of NOVC Sr Debt). NOVC Shareholders; If the investment market has an appetite for IMH NON QM securitizations backed by 100% of NON QM collateralized then investment market should have an appetite for NOVC QM mortgages. The Investor market has a very strong investors appetite from IMH conference call see link above. This means NOVC Collateral Assets which shareholders are entitled to exercising cleanup call rights in SRTA section 5.04 are far more attractive. One issue NOVC Board will not disclose a value or plan for their Call Rights. Ask Barry Igdaloff why NOVC Board has not done so and if they have not why. Concealing a plan to monetize these call rights and to value NOVC call rights by an authorized appraiser and have certified by CPA firm Boulay Group is wrong and opportunity for other investors? |
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