Review Mortgage Lenders

Annaly Mortgage

Annaly Capital Management CEO


Jobs Report, the Fed: An Aggressive Way to Play It Is With Mortgage REITs

Just the other day is a great example, warning that a combination of increased wage and transportation costs would hit EPS to the tune of $0.22. With their multiple, that alone is worth about a 4% decline in the stock's price. I pick on them because it is a company my firm owns that just reported, but we're hearing it all over.

Yet it isn't showing up in the macro statistics. Why not? I'm convinced it is due to the mix of job gains we're seeing. In other words, new entrants into the labor force are mostly taking lower wage jobs. So the average wage of everyone in the job pool may be growing pretty slowly, but only because the new members of the pool are starting with below average wages. If we did the equivalent of a same-store metric, i.e., looked only at people in the job pool for the last two years and measured their wage growth, my bet is that we'd see more obvious acceleration.

I'm generally more in favor of hard data over anecdotal evidence. But when just about every company, especially those which employ lower skill workers, are telling investors that labor is tight and wages are going up, that has to mean something. In addition, the anecdotal evidence fits what basic economic theory tells us should be true, whereas the macro data is pointing the wrong direction. Maybe my theory above isn't the reason (or isn't the only reason) why Average Hourly Earnings isn't capturing rising wages, but whatever the reason, I'm convinced wages are rising.

Financial Analysis: PennyMac Mortgage Investment Trust (PMT) versus Annaly Capital Management (NLY)

About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust is a specialty finance company that invests primarily in residential mortgage loans and mortgage-related assets. The Company conducts all of its operations, and makes all of its investments, through PennyMac Operating Partnership, L.P. (its Operating Partnership) and its subsidiaries. It operates through two segments: correspondent production and investment activities. Its investment activities segment represents the Company’s investments in mortgage-related assets. The correspondent production segment represents the Company’s operations aimed at serving as an intermediary between mortgage lenders and the capital markets by purchasing, pooling and reselling newly originated prime credit quality mortgage loans either directly or in the form of MBS, using the services of PNMAC Capital Management (the Manager or PCM) and PennyMac Loan Services, LLC (PLS), both indirect subsidiaries of PennyMac Financial Services, Inc. (PFSI or PennyMac).

The auditors of Annaly mortgage discovered that a lot of fictitious employees were on the payroll system and w?

The auditors of Annaly mortgage discovered that a lot of fictitious employees were on the payroll system and were being paid salaries. Neither the CFO nor the payroll manager was aware of the fraud.

To launder money from the company. Someone in the company added the fictitious employees in order to get money for themselves, possibly the bookkeeper.