New Residential Investment Corp. Completes Acquisition of Select Assets from Ditech Holding Corporation
October 02 2019 - 7:30AM
Business Wire
New Residential Investment Corp. (NYSE: NRZ, “New Residential”,
the “Company”), a leading provider of capital and services to the
mortgage and financial services industries, announced today that it
has completed its acquisition of select assets from Ditech Holding
Corporation and Ditech Financial LLC (collectively “Ditech”).
“We have spent the last number of months preparing for the close
of this acquisition and structuring a robust transition plan”, said
Michael Nierenberg, Chairman, Chief Executive Officer and President
of New Residential. “We are excited to execute on our plan and see
tremendous potential for creating value across our business.”
The approximate purchase price at the closing is $1.2 billion.
New Residential is financing the acquisition of these assets with
financing facilities and cash on hand.
As previously announced, New Residential will purchase Ditech’s
forward Fannie Mae, Ginnie Mae and non-agency mortgage servicing
rights (“MSRs”), with an aggregate unpaid principal balance of
approximately $62 billion as of August 31, 2019, the servicer
advance receivables relating to such MSRs and other assets core to
the forward origination and servicing businesses. Additionally, New
Residential will assume certain Ditech office spaces and add
approximately 1,100 Ditech employees to support the increase in
volume to its existing origination and servicing operations.
ABOUT NEW RESIDENTIAL
New Residential is a leading provider of capital and services to
the mortgage and financial services industries. With approximately
$37 billion in assets as of June 30, 2019, New Residential has
built a diversified, hard-to-replicate portfolio with high-quality
investment strategies that have generated returns across different
interest rate environments. New Residential’s investment portfolio
includes mortgage servicing related assets, non-agency securities
(and associated call rights), residential loans and other related
opportunistic investments. Since inception in 2013, New Residential
has a proven track record of performance, growing and protecting
the value of its assets while generating attractive risk-adjusted
returns and delivering almost $3 billion in dividends to
shareholders. Following the acquisition of Shellpoint Partners LLC
(“Shellpoint”) in 2018, New Residential also benefits from
Shellpoint’s origination and third-party servicing platform, as
well as a suite of ancillary businesses, including title insurance,
appraisal management, property management and other real estate
services. New Residential is organized and conducts its operations
to qualify as a real estate investment trust for federal income tax
purposes. New Residential is managed by an affiliate of Fortress
Investment Group LLC, a global investment management firm, and
headquartered in New York City.
ABOUT DITECH
Ditech is an independent servicer and originator of mortgage
loans and servicer of reverse mortgage loans. Based in Fort
Washington, Pennsylvania, Ditech services a diverse loan portfolio.
For more information about Ditech, please visit Ditech website at
www.ditechholding.com. The information on Ditech website is not a
part of this release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this press release constitutes as
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, including, but not
limited to, the risks relating to the acquisition, including in
respect of the satisfaction of closing conditions and the timing
thereof; unanticipated difficulties financing the acquisition;
unexpected challenges related to the integration of the Ditech’s
businesses and operations; changes in general economic and/or
industry specific conditions; difficulties in obtaining
governmental and other third party consents in connection with the
acquisition; unanticipated expenditures relating to or liabilities
arising from the acquisition or the acquired businesses; Ditech’s
ability to service MSRs pursuant to agreements entered into in
connection with the acquisition; uncertainties as to the timing of
the acquisition; litigation or regulatory issues relating to the
acquisition, Ditech, the Company or the acquired businesses; the
impact of the acquisition on relationships with, and potential
difficulties retaining, employees, customers and other third
parties; and the inability to obtain, or delays in obtaining,
expected benefits from the acquisition. These statements are not
historical facts. They represent management’s current expectations
regarding future events and are subject to a number of trends and
uncertainties, many of which are beyond our control, which could
cause actual results to differ materially from those described in
the forward-looking statements. Accordingly, you should not place
undue reliance on any forward-looking statements contained herein.
For a discussion of some of the risks and important factors that
could affect such forward-looking statements, see the sections
entitled “Cautionary Statements Regarding Forward Looking
Statements,” “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in New
Residential’s annual and quarterly reports and other filings filed
with the U.S. Securities and Exchange Commission, which are
available on New Residential’s website (www.newresi.com). New risks
and uncertainties emerge from time to time, and it is not possible
for New Residential 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. Forward-looking statements
contained herein speak only as of the date of this press release,
and 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 New Residential's
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: https://www.businesswire.com/news/home/20191002005438/en/
New Residential Investor
Relations Kaitlyn Mauritz 212-479-3150
IR@NewResi.com
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