New Residential Announces Additional Closing of Previously Announced Excess
NEW YORK -- July 8, 2013
New Residential Investment Corp. (NYSE: NRZ, “New Residential”) announced that
on July 1, 2013 it completed an additional closing of excess mortgage
servicing rights (“Excess MSRs”) that it agreed to acquire as part of the
previously announced transaction between Nationstar Mortgage LLC
(“Nationstar”) and Bank of America (the “Transaction”). This closing relates
to loans held in private label securitizations (“PLS”) with an unpaid
principal balance (“UPB”) of $43 billion, which represents approximately 45%
of the total PLS UPB associated with the Transaction.
New Residential invested approximately $53 million to acquire the right to
receive one-third of the monthly cash flow generated by the mortgage servicing
rights (“MSRs”), net of a basic fee paid to Nationstar. Nationstar is the
servicer of the loans and has retained a one-third interest in the Excess
MSRs; a Fortress Investment Group managed fund has acquired the remaining
one-third interest. New Residential will not own the servicing rights and
therefore will not have any servicing duties, advance obligations or
liabilities associated with the portfolio.
Under the terms of this investment, to the extent that any loans in the
portfolio are refinanced by Nationstar, the resulting MSRs will be included in
the portfolio, subject to certain limitations. This is expected to
significantly reduce the impact of prepayments on New Residential’s
New Residential expects to complete the remainder of the Transaction in the
third quarter, subject to regulatory approvals and customary closing
ABOUT NEW RESIDENTIAL
New Residential focuses on opportunistically investing in, and actively
managing, investments related to residential real estate. New Residential is
organized and conducts its operations to qualify as a real estate investment
trust (“REIT”) for federal income tax purposes. The Company is managed by an
affiliate of Fortress Investment Group LLC, a global investment management
Certain statements in this press release may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are based on management's current expectations and
beliefs and are subject to a number of trends and uncertainties that could
cause actual results to differ materially from those described in the
forward-looking statements, many of which are beyond our control. New
Residential can give no assurance that its expectations will be attained.
Accordingly, you should not place undue reliance on any forward-looking
statements contained in this press release. For a discussion of some of the
risks and important factors that could affect such forward-looking statements,
see the sections entitled “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operation” incorporated by
reference in the Company’s Quarterly Report on Form 10-Q, which is available
on the Company’s website (www.newresi.com). In addition, new risks and
uncertainties emerge from time to time, and it is not possible for the Company
to predict or assess the impact of every factor that may cause its actual
results to differ from those contained in any forward-looking statements. Such
forward-looking statements speak only as of the date of this press release.
New Residential expressly disclaims any obligation to release publicly any
updates or revisions to any forward-looking statements contained herein to
reflect any change in the Company's expectations with regard thereto or change
in events, conditions or circumstances on which any statement is based.
New Residential Investment Corp.
Investor Relations, 212-479-3150
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