Quarterly report pursuant to Section 13 or 15(d)

RECENT ACTIVITIES

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RECENT ACTIVITIES
6 Months Ended
Jun. 30, 2013
Recent Activities  
RECENT ACTIVITIES
15.      RECENT ACTIVITIES

These financial statements include a discussion of material events that have occurred subsequent to June 30, 2013 (referred to as “subsequent events”) through the issuance of these consolidated financial statements. Events subsequent to that date have not been considered in these financial statements.
 
On July 1, 2013, New Residential completed an additional closing of Excess MSRs that it agreed to acquire as part of the previously announced transaction between Nationstar and Bank of America (See Note 6). This closing relates to loans held in private label securitizations (“PLS”) with a UPB of $43 billion, which represents approximately 45% of the total PLS UPB associated with the transaction (Pool 10).  New Residential invested approximately $53 million to acquire the right to receive one-third of the monthly cash flow generated by the MSRs, net of a basic fee paid to Nationstar.
 
On July 15, 2013 New Residential completed an additional closing of Excess MSRs that it agreed to acquire as part of the previously announced transaction between Nationstar and Bank of America (See Note 6). This closing relates to loans held in PLS with a UPB of $4.0 billion, which represents approximately 4.2% of the total PLS UPB associated with the transaction (Pool 10). New Residential invested approximately $12 million to acquire the right to receive one-third of the monthly cash flow generated by the MSRs, net of a basic fee paid to Nationstar.
 
On July 18, 2013 New Residential completed an additional closing of Excess MSRs that it agreed to acquire as part of the previously announced transaction between Nationstar and Bank of America (See Note 6). This closing relates to loans that are owned, insured or guaranteed by GNMA with a UPB of about $34.7 billion, which represents all of the GNMA UPB associated with the transaction (Pool 9). New Residential invested approximately $65 million to acquire the right to receive one-third of the monthly cash flow generated by the MSRs, net of a basic fee paid to Nationstar.
 
On August 1, 2013, a subsidiary of New Residential entered into a master repurchase agreement with Alpine Securitization Corp., an asset-backed commercial paper facility sponsored by Credit Suisse AG, and established a maximum borrowing capacity of $350 million collateralized by its Non-Agency RMBS. This agreement is subject to customary loan covenants and events of default provisions including a 50% market capitalization decline provision; as well as a two to one indebtedness to tangible net worth provision. The one year term facility is set to expire in August 2014 and is not subject to margin call provisions. The financing bears interest at LIBOR plus an applicable margin as stated below:
 
Monthly Payment Date
 
Applicable Margin
 
August 2013 through October 2013
    2.25 %
November 2013 through January 2014
    2.50 %
February 2014 through April 2014
    3.00 %
May 2014 through August 2014
    3.50 %