|9 Months Ended|
Sep. 30, 2014
These financial statements include a discussion of material events that have occurred subsequent to September 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.
Subsequent to September 30, 2014 and prior to November 5, 2014, the Buyer funded a total of $262.5 million of servicer advances and recovered $320.4 million of existing servicer advances. Notes payable outstanding decreased by $34.4 million and restricted cash decreased approximately $0.9 million in relation to these fundings. Additionally, the Buyer paid $4.9 million to Nationstar as a contractual incentive fee.
Real Estate Securities
Subsequent to September 30, 2014, New Residential acquired Non-Agency RMBS with an aggregate face amount of approximately $980.5 million for approximately $297.7 million, financed with repurchase agreements. New Residential acquired no new Agency RMBS. New Residential sold Non-Agency RMBS with a face amount of $7.7 million and an amortized cost basis of approximately $6.8 million for approximately $6.8 million and recorded no gain. New Residential sold no Agency RMBS.
Subsequent to September 30, 2014, New Residential financed an additional $200.6 million of Agency RMBS within a repurchase facility as a result of purchases. New Residential also rolled $1.5 billion within various repurchase facilities to mature between November 2014 and January 2015.
Subsequent to September 30, 2014, New Residential financed an additional $95.4 million of Non-Agency RMBS within various repurchase facilities as a result of purchases. New Residential also rolled $208.9 million within various repurchase facilities to mature between November 2014 and January 2015.
Residential Mortgage Loans
On October 3, 2014, New Residential completed a REMIC securitization of performing residential mortgage loans with a UPB
of approximately $463.6 million for a price of $493.4 million and as a part of the offering, acquired a class of interest-only notes for a purchase price of approximately $25.8 million. The securitization was recorded as a sale for accounting purposes and New Residential recognized a net gain on settlement of investments of approximately $1.2 million. Proceeds from the sale were used to pay down $423.2 million of the repurchase agreement with Bank of America N.A.
On October 9, 2014, New Residential committed to purchase a primarily reperforming residential mortgage loan portfolio with a UPB of approximately $386.8 million at a price of approximately $357.9 million. The sale is expected to settle on November 21, 2014.
On October 10, 2014, New Residential purchased two pools of non-performing residential mortgage loans with a UPB of approximately $254.9 million at a price of approximately $188.8 million. The acquisitions of the two pools are expected to settle on November 6, 2014 and December 17, 2014, respectively.
On October 20, 2014, New Residential extended the note payable to Nationstar related to reverse residential mortgage loans to mature on October 19, 2015. Borrowings on this extension bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a spread of 2.875% (reduced from a spread of 3.25%). This facility contains customary covenants, event of default provisions, and is subject to required monthly principal payments.
On October 28, 2014, New Residential sold a portion of its linked transactions for net proceeds of approximately $23.7 million.
On October 3, 2014, the Consumer Loan Companies refinanced the Class A and Class B asset-backed notes with approximately $1.5 billion outstanding with an asset-backed securitization for approximately $2.6 billion. The excess proceeds were distributed to the co-investors. New Residential received approximately $337.8 million which reduced New Residential’s basis in the consumer loans investment to $0.0 million and resulted in a gain of approximately $73.8 million. New Residential used the proceeds to pay down the $125.0 million repurchase agreement that was scheduled to mature in January 2015. Subsequent to this refinancing, New Residential has discontinued recording its share of the underlying earnings of the Consumer Loan Companies until such time as their cumulative earnings exceed their cumulative cash distributions.
On September 18, 2014, New Residential’s board of directors declared a third quarter 2014 dividend of $0.35 per common share or $49.5 million, which was paid on October 31, 2014 to stockholders of record as of September 29, 2014.
See Note 13 for a discussion of the reverse stock split which was effected on October 17, 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.