New Residential Announces Purchase of Mortgage Servicing Rights from PHH
December 28 2016 - 5:04PM
Business Wire
New Residential Investment Corp. (NYSE:NRZ, “New Residential” or
the “Company”) today announced it has entered into an agreement
(the “Purchase Agreement”), through its wholly-owned subsidiary New
Residential Mortgage LLC (“NRM”), to purchase approximately $72
billion UPB of seasoned Agency and private-label mortgage servicing
rights (“MSRs”) from PHH Mortgage Corporation (“PHH Mortgage”), a
wholly-owned subsidiary of PHH Corporation (NYSE: PHH), for a total
purchase price of approximately $612 million. In addition,
associated with the MSR purchase, NRM will purchase approximately
$300 million of servicer advances from PHH Mortgage.
Concurrently with the Purchase Agreement, NRM entered into a
subservicing agreement with PHH Mortgage, pursuant to which PHH
Mortgage will subservice the mortgage loans underlying the MSRs
acquired by NRM.
“We are very excited to announce this transaction and strategic
partnership with PHH,” said Michael Nierenberg, Chairman and Chief
Executive Officer of New Residential. “As one of the leading
mortgage servicers in the U.S., PHH will be a great addition to our
network of servicing partners, and we look forward to working
closely with PHH. This transaction further demonstrates our role as
one of the leading capital providers to the mortgage industry and
our commitment to drive long-term earnings for our shareholders
through the growth of our MSR portfolio.”
The transaction is expected to close in the first half of 2017
and is subject to (i) PHH shareholder approval, (ii) GSE and other
regulatory approvals and (iii) certain customary closing
conditions.
ABOUT NEW RESIDENTIAL
New Residential focuses on opportunistically investing in, and
actively managing, investments related to residential real estate.
The Company primarily targets investments in mortgage servicing
related assets and other related opportunistic investments. 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 (NYSE: FIG), a global investment management
firm.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, such as statements
regarding the satisfaction of closing conditions to the
transaction; unanticipated difficulties financing the purchase
price; unanticipated expenditures relating to the transaction;
uncertainties as to the timing of the transaction; litigation
relating to the transaction; and the inability to obtain, or delays
in achieving the expected benefits of the transaction. 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 the Company’s control, such as regulatory approvals. New
Residential cannot give any assurance that its expectations will be
attained as described herein, or at all. 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” in the Company’s Annual Reports on Form 10-K
and Quarterly Reports on Form 10-Q, which are available on the
Company’s website (www.newresi.com). Factors which could have a
material adverse effect on the Company’s operations, future
prospects or the transactions described herein include, but are not
limited to, various risks relating to such transaction. 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161228005431/en/
New Residential Investment Corp.Investor
Relations212-479-3150
New Residential Investment (NYSE:NRZ)
Historical Stock Chart
From Mar 2024 to Apr 2024
New Residential Investment (NYSE:NRZ)
Historical Stock Chart
From Apr 2023 to Apr 2024