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David Sims  

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  • Mortgage Servicers Could Do Well This Quarter [View article]
    Anyone have any insight on who is shorting these stocks?
    May 23, 2015. 08:56 AM | Likes Like |Link to Comment
  • Impac Mortgage, A Hidden Value? [View article]
    That's a separate company. The mortgage division is not involved with that and was sold.
    May 19, 2015. 08:13 AM | Likes Like |Link to Comment
  • Privatized GSEs could cause spike in mortgage rates [View news story]
    There is also an implication for the bond bubble.
    May 18, 2015. 03:31 PM | Likes Like |Link to Comment
  • Private mortgage insurers losing market share to FHA [View news story]
    Mortgage insurers should get used to this. FHA is going to replace Fannie and Freddie, according to the Administration's wind-down plans.

    Unless they come to their senses and simply release the GSEs from C-ship.
    May 14, 2015. 03:27 PM | Likes Like |Link to Comment
  • Impac Mortgage, A Hidden Value? [View article]
    I'm very happy with the way this trade has worked out. To be perfectly honest, the company has performed better than my own expectations. The recent deal with Macquarie and the acquisition of Cash Call have increased their operational efficiency without impacting the balance sheet. They are in growth mode once again.

    My view on the preferred stock has not changed and I maintain a large overweight position in my own portfolio. As I recently expressed in other articles, I am now very bullish on the common stock. I think the company has been ahead of their competition in this market and is ramping up to create a platform for private lending.

    Based on guidance provided for April, and my own due diligence, I think they broke $1 billion in originations for the month. They may have another exceptional quarter, despite an uptick in interest rates.
    May 14, 2015. 08:19 AM | Likes Like |Link to Comment
  • Impac Mortgage Is A Story To Watch In 2015 [View article]
    I think you will see what I mean when you read these documents.

    This is the tender offer that altered the B and C preferred shares. I don't see any mention of stripping voting rights.
    http://1.usa.gov/1e23hKC

    This is the original document. Read (6) VOTING RIGHTS section (d) specifically. It says the rights will be in place for the shares that are "outstanding at the time" and it also prohibits the issuance of new shares without a vote.
    http://1.usa.gov/1PH7xdY

    I don't believe they can strip the shareholder's right to vote on their own structure in the future. So, when I say voting rights are intact, that's what I mean.
    May 13, 2015. 04:20 PM | Likes Like |Link to Comment
  • Impac Mortgage Is A Story To Watch In 2015 [View article]
    If Impac wants to alter the shares in any way, a vote must take place among the remaining holders. This would include issuance, redemption or tendering the shares. In order for the class to be altered, 66.67% of holders must agree. That's all I will say on the matter.
    May 13, 2015. 11:07 AM | Likes Like |Link to Comment
  • Impac Mortgage Is A Story To Watch In 2015 [View article]
    Frankly, they have a lot of opportunities here. If they could retain some MSRs, I'd be willing to wait another year or two for dividends. The business would benefit tremendously from rates rising, if they had a large MSR portfolio. This would also offset some of the negative impact on refi volumes.
    May 12, 2015. 08:34 AM | 1 Like Like |Link to Comment
  • Impac Mortgage Is A Story To Watch In 2015 [View article]
    There are two preferred, IMPHP and IMPHO. I am buying the cheaper one, whichever it happens to be be at the time. The preferred still have a $25 liquidation value and the voting rights are intact. Dividends have been suspended and I think that will not change until the company's cash needs are met.
    May 12, 2015. 08:26 AM | Likes Like |Link to Comment
  • Digesting Freddie Mac's Quarterly Results [View article]
    They should just liquidate that portfolio now and keep the hedge in place. It will work out well if they do that.
    May 7, 2015. 12:19 PM | Likes Like |Link to Comment
  • Digesting Freddie Mac's Quarterly Results [View article]
    I don't understand what you are asking.
    May 6, 2015. 03:22 PM | Likes Like |Link to Comment
  • Digesting Freddie Mac's Quarterly Results [View article]
    Freddie has $14 billion worth of preferred shares. The dividends are less than $1 billion, but you are right. This drops the potential annualized earnings from $8B to $7B. Frankly, we are talking about something that is still an order of magnitude that is 10 times the current price. So, the back of the envelope calculation is still relevant.
    May 6, 2015. 03:22 PM | 1 Like Like |Link to Comment
  • Fannie And Freddie: Stress Test Results Confirm Need For 4% Capital Levels [View article]
    Seems like they are paying the private market rate. That's a signal to me.
    May 6, 2015. 11:37 AM | 1 Like Like |Link to Comment
  • Fannie And Freddie: A New Leaked Treasury Memo Surfaces [View article]
    http://bloom.bg/1K90Z6L
    May 5, 2015. 01:14 PM | 2 Likes Like |Link to Comment
  • Fannie And Freddie: Stress Test Results Confirm Need For 4% Capital Levels [View article]
    Here's a point I may start hammering.

    There has not been a taking "yet." The claims are not ripe "yet."

    The administration has a door to walk through and it is privatization. Shareholders still have rights. The original agreement has not "yet" been breached. Everything can be re-written to preserve shareholder rights and reduce taxpayer risk. Privatization with 4% capital thresholds.

    More to come. The key word is "yet" and the clock is ticking.
    May 3, 2015. 03:13 PM | 1 Like Like |Link to Comment
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