What you missed: (1) FMT had over $3 Billion in mortgages available for sale. When they do sell, there will be a big profit pickup. (2) Mortgages are running at or near record rate. Profits will continue at a high rate. (3) They are unloading the non performing loans and foreclose properties at breakeven. No loss on thes loans. (4) No balance sheet was shown. we will have to wait for the annual 10K to find out how much profit is hidden in their loan receivables. Good Luck in your investing.
3 billion in loans held for sale can go either way. If interest rates rise the value of the portfolio drops. I rates drop the value goes up. Regardless I would not want to be short right now. Hold on this should be fun.
Well , Sort of. They have commitments in place with several investors before they even book a loan. They don't have auction-like sales after accumulating a big portfolio that go to the highest bidder. There is more predetermination than that.