Nfi-info.net
Title
Nova star Financial - NFI - Investor Information (REIT, MREIT)
Description
1997
NFI launches with a very similar plan to that of IMH, focused on the non-prime while IMH worked on alt-a. Both are profitable niches because the loans take more work, especially in underwriting credit of the borrower, but both sectors have extra spread in the loans. NFI does a couple of CMO deals, holding both the loans and the CMO's on its balance sheet. The IO and first-loss pieces remain as equity holdings. To protect against absolute credit disaster, NFI pays for (pool) mortgage insurance on top of the LTV and primary mortgage insurance that provide protection on each mortgage...
1998 — First Real Ramp Up Year
First real ramp-up year. Business starts to really pick up and $624 million in deals get done. The business model is a huge success and the business plan is being perfectly executed. Then, in October the LTCM meltdown hits. This affects every company relying on short term (repo or margin) financing. Most go BK. In the midst of the crisis, GE refuses to loan them guaranteed money. The failure to meet this obligation causes NFI to struggle and look for alternative ways to fund their deals. NFI got caught in a bad market and survived by innovative management making astute choices. The vast majority of companies in the sector don’t make it.
1999 — Survival Year
Wally Weitz "gets it" and provides convertible preferred financing. NFI survives by making loans and selling them, and only gets one tiny CMO done to create a bit of portfolio for ongoing income.
Languages
English
Address
- 4th Floor, Ellen Skelton Bldg., Drakes Hwy, PO Box 3444
- Roadtown, Tortola TORTOLA BRITISH VIRGIN ISLANDS
Additional Information
Related Domains
External Links
- Alexa: Nfi-info.net
