bankers

Y’all Circuit and District Court Judges in Federal Courts Should Read How Hands-Off Erbey Is These Days

October 2020, William Erbey pens the following letter…what happened next? Front Yard Residential was liquidated tout suite as they say.

Bill Erbey Calls on Front Yard Residential to Return Capital to Stockholders via an Orderly Liquidation

Letter Issued by William C. Erbey to Front Yard’s Chair Makes Clear that Front Yard’s best option to create shareholder value is the orderly liquidation of the Company.

OCT 7, 2020 | REPUBLISHED BY LIT: MAR 16, 2021

William C. Erbey recently issued the below open letter to the Chair of the Board of Directors of Front Yard Residential Corporation (NYSE: RESI) (“Front Yard” or the “Company”), a provider of affordable single family housing across America. Front Yard was established as an independent public company following its spin-off from Altisource Portfolio Solutions S.A. (NASDAQ: ASPS) in December 2012.

Source: William C. Erbey

September 30, 2020

Front Yard Residential Corporation
c/o Altisource Asset Management Corporation
5100 Tamarind Reef
Christiansted, VI 00820
Attn: Rochelle Dobbs, Chair of the Board

Dear Chairwoman Dobbs:

I have been an investor in Front Yard Residential since its inception.  And as much as I would like to see the Company continue, the time has come, in the best interests of the shareholders, to liquidate the Company.  As far back as May 2018, CFO Robin Lowe stated on the Q1 Earnings call that “But we’re solidly in the $18 to $19 range per share” in terms of NAV.

This guidance was confirmed in the following  Q2 Earnings Call in response to the following observation by an analyst:

“Then lastly, just we keep seeing industry data, home prices are rising, things are — there is a big tailwind, you guys have been obviously at the lower end of the market. Those houses seem to be going up faster than higher priced homes. Last quarter, you kind of talked about an $18 to $19 NAV.  How are you thinking about that number now…?”

Mr. Lowe assured he was “absolutely convinced” that the NAV was in that range and later alluded to an independent valuation company validating the same range.

The Company has never reversed its guidance of two years ago nor subsequently disclosed anything that would call it into question.  To the contrary, given the continued market increase in overall housing values since that time, it would be difficult to support a NAV of less than $20-21/share assuming the Company has professionally executed over this time period.  The record is replete with management’s assertions that they have been doing an outstanding job.

The Company’s assertion that the cost of liquidating the portfolio is $6.50/share begs credulity.  That cost equates to 14% of the total enterprise value of the properties at a $20/share NAV, upwards of $383 million.

In my limited experience in the industry, this is way over market – more than double what a well-run firm should spend to sell homes.

Adjusting to a more reasonable cost to liquidate the homes, the net liquidation value of the Company is $16.50/share ($20/share – $3.50/share).

I call upon the Board to exercise its fiduciary duties and liquidate the Company.

Best regards,

William C. Erbey

Owen’s Easter Basket of Omissions and Whiteouts re Ocwen Loan Servicing et al.

The Burkes filed their Petition for Rehearing en banc to allow all the active judges who are not recused and able to participate, an opportunity to cast their Vote.

The Chief Priscilla ‘Foreclosure Queen’ Owen’s Accelerating Relationship with Mortgage Servicer Ocwen

Judge Priscilla Owen is involved in most of the 3-panel opinions in 2021 related to foreclosure appeals, representing Wall St. and taking properties as Chief executioner.

Protected: Owen’s Easter Basket of Omissions and Whiteouts re Hopkins Law et al

A party who files timely written objections to a magistrate judge’s report and recommendation is entitled to a de novo review of those findings or recommendations to which the party specifically objects. 28 U.S.C. § 636(b)(1)(C); Fed. R. Civ. P. 72(b)(2)-(3).

Y’all Circuit and District Court Judges in Federal Courts Should Read How Hands-Off Erbey Is These Days
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Laws In Texas is a blog about the Financial Crisis and how the banks and government are colluding against the citizens and homeowners of the State of Texas and relying on a system of #FakeDocs and post-crisis legal precedents, specially created by the Court of Appeals for the Fifth Circuit to foreclose on homeowners around this great State. We are not lawyers. We do not offer legal advice. We are citizens of the State of Texas who have spent a decade in the court system in Texas and have been party to during this period to the good, the bad and the very ugly.

Donate to LawsInTexas. Make a Difference.

Subscribe to Our Newsletter

We keep your data private and share your data only with third parties that make this service possible. See our Privacy Policy for more information.

© 2020-21 LawInTexas com is an online trading name which is wholly owned by Blogger Inc., a nonprofit 501(c)(3) registered in Delaware. | All Rights Reserved.

To Top