New Residential & Altisource Announce Cooperative Brokerage Agreement Relating to Approximately $116 Billion UPB of Mortgage ...
August 28 2017 - 6:45AM
Business Wire
New Residential Investment Corp. (NYSE:NRZ, together with its
subsidiaries, “New Residential”) and Altisource Portfolio Solutions
S.A. (NASDAQ:ASPS, together with its subsidiaries, "Altisource")
today announced that New Residential and Altisource entered into an
8-year Cooperative Brokerage Agreement, pursuant to which
Altisource’s licensed real estate brokerage subsidiaries will
exclusively provide marketing and listing services for real estate
owned (“REO”) properties included in certain portfolios of mortgage
loans for which New Residential has acquired, or will acquire, the
mortgage servicing rights (“MSR”).
The Cooperative Brokerage Agreement includes the following key
terms:
- The MSR portfolios covered by the
agreement include (i) an approximately $110 billion UPB(1)
non-agency MSR portfolio that New Residential agreed to acquire
from certain subsidiaries of Ocwen Financial Corporation in July
2017 (the “Ocwen Portfolio”), and (ii) an approximately $6 billion
UPB(1) non-agency MSR portfolio that New Residential agreed to
acquire from certain subsidiaries of PHH Corporation in December
2016.(2)
- Altisource’s licensed real estate
brokerage subsidiaries will begin to receive REO referrals under
the agreement as the MSR portfolios transfer to New
Residential.(3)
- New Residential’s licensed real estate
brokerage subsidiary will receive a referral commission for each
REO sold by Altisource on its behalf.
- The agreement includes termination
events, vendor oversight and audit rights and reporting
requirements, and provisions designed to ensure pricing for REO
marketing and listing services remains competitive throughout the
term of the contract.
In addition to the Cooperative Brokerage Agreement, New
Residential and Altisource have entered into a letter of intent
pursuant to which New Residential and Altisource agreed to
negotiate, in good faith, a definitive services agreement under
which Altisource would be the exclusive provider of certain
fee-based services with respect to the Ocwen Portfolio. Pursuant to
the letter of intent, New Residential and Altisource have also
committed to work together to seek further opportunities to expand
their relationship.
Investors should refer to the Current Report on Form 8-K filed
by each company for additional information regarding the terms of
these agreements.
“We are pleased to announce this new partnership with
Altisource. By leveraging Altisource’s suite of mortgage and real
estate services, we aim to maximize returns for investors in the
underlying loans and improve the performance of our MSR portfolio,”
said Michael Nierenberg, Chairman and Chief Executive Officer of
New Residential. “We believe this is a mutually beneficial
partnership and we look forward to working closely with
Altisource.”
William B. Shepro, Chief Executive Officer of Altisource
commented, “I am very pleased to establish a relationship with New
Residential, one of the largest and most active mortgage servicing
rights owners in the industry. These agreements strengthen
Altisource’s existing position as a leading provider of services to
the mortgage industry, provide greater visibility into Altisource’s
revenue and earnings from the Ocwen Portfolio and provide a great
opportunity to develop and grow relationships with New Residential
and PHH Corporation.”
1)
Unpaid principal balance as of June 30,
2017.
2)
Subject to PHH Corporation approval of
Altisource as a vendor.
3)
New Residential’s acquisition of such MSR
portfolios remains subject to the approval of certain
counterparties to the related securitizations or other servicing
transactions and other customary closing conditions.
ABOUT NEW RESIDENTIAL INVESTMENT CORP.
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.
ABOUT ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Altisource Portfolio Solutions S.A. is an integrated service
provider and marketplace for the real estate and mortgage
industries. Combining operational excellence with a suite of
innovative services and technologies, Altisource helps solve the
demands of the ever-changing market. Additional information is
available at www.Altisource.com.
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 receipt, and timing of receipt, of approvals to
transfer MSR portfolio to New Residential, the transaction
maximizing returns for investors in the underlying loans and
improving the performance of New Residential’s MSR portfolio, the
ability of New Residential and Altisource to negotiate a definitive
services agreement, maintain a good relationship, the ability to
close New Residential’s proposed transactions with PHH Corporation
as scheduled, and any anticipated benefits of such agreements for
the shareholders of New Residential and Altisource. These
statements are based on the current expectations and beliefs of
management of each of New Residential and Altisource 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 control of
New Residential and Altisource. Neither New Residential nor
Altisource can 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 Operations” in each company’s Quarterly Reports on Form
10-Q and Annual Reports on Form 10-K, which are available on each
company’s website (www.newresi.com; www.Altisource.com). Factors
which could have a material adverse effect on each company’s
operations, future prospects or the transactions described herein
include, but are not limited to, various risks relating to such
transactions, including in respect of the satisfaction of closing
conditions to New Residential’s acquisition of the covered MSR
portfolios, including obtaining the necessary third party
approvals; uncertainties as to the timing or completion of
transfers related to New Residential’s acquisition of the covered
MSR portfolios; litigation relating to the transactions; the
possibility of early termination of the Cooperative Brokerage
Agreement, the possibility that the parties will not be able to
negotiate a satisfactory services agreement, and the inability to
obtain, or delays in achieving, the expected benefits of the
transactions. In addition, new risks and uncertainties emerge from
time to time, and it is not possible for New Residential or
Altisource 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 and
Altisource expressly disclaim any obligation to release publicly
any updates or revisions to any forward-looking statements
contained herein to reflect any change in their expectations with
regard thereto or change in events, conditions or circumstances on
which any statement is based.
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version on businesswire.com: http://www.businesswire.com/news/home/20170828005247/en/
Investor RelationsNew Residential Investment
Corp.212-479-3150orAltisource Portfolio Solutions S.A.Michelle D.
Esterman, +352 2469 7950Chief Financial Officer
New Residential Investment (NYSE:NRZ)
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