New Residential Announces Purchase of Mortgage Servicing Rights from PHH
NEW YORK--(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.
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.
New Residential Investment Corp.
Source: New Residential Investment Corp.
Released December 28, 2016