|6 Months Ended|
Jun. 30, 2014
These financial statements include a discussion of material events that have occurred subsequent to June 30, 2014 (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.
On July 8, 2014, New Residential invested approximately $14.2 million to acquire a 32.5% interest in the Excess MSR on a portfolio of Fannie Mae residential mortgage loans ("Pool 13") with an aggregate UPB of $5.9 billion. Fortress-managed funds and Nationstar agreed to acquire a 32.5% and 35.0% interest in the Excess MSRs, respectively. New Residential also invested approximately $5.7 million to acquire a one-third interest in the Excess MSR on a portfolio of Fannie Mae residential mortgage loans ("Pool 15") with an aggregate UPB of $2.1 billion. Fortress-managed funds and Nationstar each agreed to acquire a one-third interest in the Excess MSRs.
Nationstar as servicer will 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 these investments, to the extent that any loans in the portfolios 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.
Subsequent to June 30, 2014 and prior to August 4, 2014, the Buyer funded a total of $943.5 million of servicer advances and recovered $1.1 billion of existing servicer advances. Notes payable outstanding decreased by $130.9 million and restricted cash decreased approximately $3.8 million in relation to these fundings. Additionally, the Buyer received $1.0 million from Nationstar to satisfy a targeted return shortfall.
On July 18, 2014, the Buyer received $26.7 million in proceeds from the refinancing of the note issued under the Bank of America facility. The Bank of America note was prepaid with proceeds of a new note issued to J.P. Morgan. The note issued to J.P. Morgan has a fixed interest rate equal to 2.45% with an expected repayment date of July 2016. As of July 31, 2014, the principal balance of this note was approximately $531.9 million.
On July 25, 2014, the Buyer received $12.1 million in proceeds from the refinancing of the Credit Suisse syndicated debt with notes issued to Morgan Stanley and J.P. Morgan.
Real Estate Securities
Subsequent to June 30, 2014, New Residential acquired Agency RMBS with an aggregate face amount of approximately $243.0 million for approximately $251.4 million and acquired Non-Agency RMBS with an aggregate face amount of approximately $22.7 million for approximately $19.2 million, financed with repurchase agreements. New Residential sold Agency ARM RMBS with a face amount of $443.2 million and an amortized cost basis of approximately $471.1 million for approximately $474.4 million and recorded a gain of approximately $3.3 million. New Residential sold no Non-Agency RMBS.
Subsequent to June 30, 2014, New Residential acquired additional net short TBA positions that increased its net short notional position by $392.0 million of Agency RMBS and any amounts or obligations owed by or to New Residential are subject to the right of set-off with the TBA counterparty.
In July 2014, New Residential paid off $397.8 million of the Agency ARM RMBS repo facility as a result of sales and rolled $764.2 million to mature in August 2014.
In July 2014, New Residential rolled $87.1 million of the Non-Agency RMBS repo facility that was scheduled to mature in July 2014 to mature in August 2014 through October 2014 and received an incremental financing of $1.7 million due to more favorable financing terms on the same collateral.
On June 17, 2014, New Residential’s board of directors declared a second quarter 2014 dividend of $0.175 per common share and a special cash dividend of $0.075 per common share, or $70.6 million, which was paid on July 31, 2014 to stockholders of record as of June 27, 2014.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
No definition available.