the same cannot be said for two and mtge. most of their capital is not in MSR like CHMI. the percentages are lower and they have much more agency mbs. CHmi book will improve on higher rates vs MTGe which will decline.
the pricing was fair and they had bought 2 pools of MSR with a right to the new mSRs if prepaid using freedom mortgage. so if the mortgagee refinances with freedom and was previously with freedom CHMI gets the new MSR for free. If you look over the terms you can see the deals made with the parent company are solid and fair.
yeah, they should lump it in with the mortgage servicers like NSM...
What you said for CHMI can be said for TWO and MTGE..
The problem with CHMI is that they buy those MSRs directly from their parent.. The business of Mortgage origination/servicing from the date of CHMI's IPO hasn't been terribly easy ... as evidenced by the stock prices of NSM, OCN and perhaps HLSS. HLSS would be more like CHMI, as enter sub-servicing agreements..
CHMI's liquidity, or lack thereof.. makes it prone to the circumstance when there are a few sellers (but no more than average), and not too many buyers. Right now, things are very opaque.. They have not announced a date for earnings or preliminary results for that matter. No one has any idea what book value may or may not be.. There are more than a few people who don't feel confident to understand the composition of book value.. and how these MSRs are marked to market.. if they are getting (willfully) shafted by their parent company on the pricing and quality of such deals.. etc..
I could go on.. but I'm not.
yeah tcpc is comical so they beat nicely and i had 300 oming in and loaded up at evens just got out at .27 there i want to hold but oh well im out
im short just one name and small trying to find dips in the good ones that beat and have divi soon
else shorting the sector on bounces
i went longg big mtge and slowly shedded outofagnc and will use agnc as a short
but rem, amtg and others as the short
you think arr which lost 10% last quarter in book didnt wont get smoked again??? book wise
give me a break
long 6k mtge and adding
but its not the same at all. CHMI's NAV goes UP as rates rise and down if rates fall thanks to the majority of their capital in MSR but somewhat hedged with agency mbs.
reply from Ameritrade...."we do not allow shorting of OTC stocks. This is a business decision made by TD Ameritrade".
I replied "ok, I give business to IAB and Schwab you don't want"...your loss.
ps- cann was great short from 60 to 40 in 2 days.
immediate pop if you pop the divi even just a little will do the trick quicker
not referring to your post hatedahft.. unless you think you're spam man..
NYMTP is a good choice that always has a "book value" of 25.. so no need to worry about what crazy thing will happen to make bv drop dead.
they won't get it back.. because they realized losses en masse and have a very heavy swap position that eats nim. Ironically, they are set up the best for a rise in libor.. but knowing their comical modus operandi ... they'll sell what remains of the swap position for a loss 4 days before the first fed funds hike.. that kind of thing..
Lets hope they do very little.. They seem to be on the right track when it comes to chest thumping press releases regarding buybacks. Like.. ARR announces authorization to buy 500 million shares, a unicorn, and the rest of the stock market.. and whatsapp, because why not.
But damn, they got a smokin average repurchase price... so... I'll take the repurchase prog seriously until they give me reasons to doubt their efficiency.