TAMPA, Fla., Nov. 16, 2016 /PRNewswire/ -- Walter
Investment Management Corp. (NYSE: WAC) ("Walter Investment" or the
"Company") today announced that certain affiliated subsidiaries of
Walter Capital Opportunity Corp. (collectively, "WCO") have
executed a mortgage servicing right ("MSR") purchase and sale
agreement (the "MSRPSA") with New Residential Mortgage LLC ("NRM"),
a wholly-owned subsidiary of New Residential Investment Corp.
(NYSE: NRZ), pursuant to which, among other things, WCO has
agreed to sell to NRM MSRs relating to mortgage loans with an
unpaid principal balance of approximately $10 billion (the "WCO MSRs") and that are
sub-serviced by Walter Investment's wholly-owned indirect
subsidiary, Ditech Financial LLC ("Ditech"). The WCO MSRs
represent substantially all of WCO's MSR portfolio.
As previously announced, in a series of transactions relating to
the sale of the WCO MSRs, NRM is expected to acquire from Ditech
MSRs relating to mortgage loans with an unpaid principal balance of
approximately $24 billion (the
"Ditech MSRs") in connection with the sale by WCO of substantially
all of its remaining assets, including excess servicing spread on
the Ditech MSRs, which excess servicing spread was previously
purchased by WCO from Ditech. The transactions relating to
the sale by WCO of substantially all of its assets, including the
sale of the Ditech MSRs, are expected to generate approximately
$90 million in near-term cash
proceeds for the Company.
In addition, it is expected that Ditech will sub-service, on
behalf of, and under its existing sub-servicing agreement with,
NRM, both the WCO MSRs and Ditech MSRs following the closing of the
transactions contemplated in the MSRPSA and the related transaction
documents, which transactions remain subject to various closing
conditions, including government-sponsored entity
approval.
"As I recently discussed on our third quarter earnings call,
Walter Investment's leadership team is focused on taking actions to
enable achievement of our business goals, and to that end we are
pleased to announce the execution of the MSRPSA, which represents
an important milestone with respect to the sale of substantially
all of WCO's assets and the Company's goal of strengthening its
balance sheet," said Anthony N.
Renzi, Walter Investment's Chief Executive Officer and
President.
About Walter Investment Management Corp.
Walter Investment Management Corp. is a diversified mortgage
banking firm focused primarily on the servicing and origination of
residential loans, including reverse loans. Based in
Tampa, Fla., the Company has
approximately 5,000 employees and services a diverse loan
portfolio. For more information about Walter Investment
Management Corp., please visit the Company's website at
www.walterinvestment.com. The information on our website is
not a part of this release.
Disclaimer and Cautionary Note Regarding Forward-Looking
Statements
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended. Statements that are not historical fact are
forward-looking statements. Certain of these forward-looking
statements can be identified by the use of words such as
"believes," "anticipates," "expects," "intends," "plans,"
"projects," "estimates," "assumes," "may," "should," "will,"
"seeks," "targets," or other similar expressions. Such
forward-looking statements involve known and unknown risks,
uncertainties and other important factors, and our actual results,
performance or achievements could differ materially from future
results, performance or achievements expressed in these
forward-looking statements. These forward-looking statements are
based on our current beliefs, intentions and expectations. These
statements are not guarantees or indicative of future performance.
Important assumptions and other important factors that could cause
actual results to differ materially from those forward-looking
statements include, but are not limited to, those factors, risks
and uncertainties described under the caption "Risk Factors" in our
Annual Report on Form 10-K for the year ended December 31,
2015 and in our Quarterly Reports on Form 10-Q for the quarterly
periods ended March 31, 2016,
June 30, 2016 and September 30, 2016, and in our other filings with
the Securities and Exchange Commission.
In addition, this press release may contain statements of
opinion or belief concerning market conditions and similar
matters. In certain instances, those opinions and beliefs
could be based upon general observations by members of our
management, anecdotal evidence and/or our experience in the conduct
of our business, without specific investigation or statistical
analyses. Therefore, while such statements reflect our view of the
industries and markets in which we are involved, they should not be
viewed as reflecting verifiable views and such views may not be
shared by all who are involved in those industries or markets.
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SOURCE Walter Investment Management Corp.