Quarterly report pursuant to Section 13 or 15(d)

RECENT ACTIVITIES

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RECENT ACTIVITIES
6 Months Ended
Jun. 30, 2015
Subsequent Events [Abstract]  
RECENT ACTIVITIES
RECENT ACTIVITIES
 
These financial statements include a discussion of material events that have occurred subsequent to June 30, 2015 (referred to as “subsequent events”) through the issuance of these condensed consolidated financial statements. Events subsequent to that date have not been considered in these financial statements.

Excess MSRs

On July 16, 2015, New Residential invested approximately $2.4 million to acquire a 33.3% interest in the Excess MSRs on a portfolio of Freddie Mac residential mortgage loans with an aggregate UPB of $0.8 billion. Fortress-managed funds and Nationstar each agreed to acquire a 33.3% interest in the Excess MSRs. Nationstar as servicer agreed to perform all servicing and advancing functions, and retain the ancillary income, servicing obligations and liabilities as the servicer of the underlying loans in each of the portfolios. Under the terms of the investment, to the extent that any loans in the portfolio are refinanced by Nationstar, the resulting Excess MSRs are shared on a pro rata basis by New Residential, the Fortress-managed funds and Nationstar, subject to certain limitations.

Servicer Advances
 
Subsequent to June 30, 2015 and prior to August 10, 2015, the Buyer purchased a total of $277.4 million of servicer advances and recovered $457.5 million of existing servicer advances.  Notes payable outstanding decreased by $162.0 million and restricted cash decreased approximately $0.4 million in relation to these fundings. Additionally, the Buyer paid $3.8 million to Nationstar as a contractual incentive fee.

Subsequent to June 30, 2015 and prior to August 10, 2015, New Residential purchased a total of $25.8 million of SLS servicer advances and recovered $44.9 million of existing SLS servicer advances. Notes payable outstanding decreased by $16.9 million and restricted cash decreased approximately $0.05 million in relation to these fundings.

Subsequent to June 30, 2015 and prior to August 10, 2015, New Residential purchased a total of $1.3 billion of Ocwen servicer advances and recovered $1.7 billion of existing Ocwen servicer advances. Notes payable outstanding decreased by $271.5 million and restricted cash decreased approximately $15.5 million in relation to these fundings.

Real Estate Securities
 
Subsequent to June 30, 2015, New Residential acquired Non-Agency RMBS with an aggregate face amount of approximately $157.2 million for approximately $114.1 million, financed with repurchase agreements. New Residential sold no Agency or Non-Agency RMBS.

Subsequent to June 30, 2015, New Residential financed an additional $942.0 million of Agency RMBS within various repurchase facilities as a result of the closing of prior purchases. Additionally, New Residential paid down $955.1 million of Agency RMBS repurchase facilities with proceeds from the outstanding open trades receivable. Finally, New Residential rolled $206.9 million within various repurchase facilities to mature August 2015.

Subsequent to June 30, 2015, New Residential financed an additional $69.2 million of Non-Agency RMBS within various repurchase facilities as a result of purchases. New Residential also rolled $490.8 million of its Non-Agency RMBS repurchase facilities to mature between August 2015 and November 2015.

Derivatives

Subsequent to June 30, 2015, New Residential entered into one separate interest rate swap agreement with a single counterparty with a $300 million notional amount to further hedge a portion of its interest rate exposure.

Corporate Activities

On May 14, 2015, New Residential’s board of directors declared a second quarter 2015 dividend of $0.45 per common share or $89.5 million, which was paid on July 24, 2015 to stockholders of record as of May 26, 2015.