How Michael Nierenberg Focused On Excess Mortgage Servicing Rights As Assets

As the Chairman of the Board, President, and CEO of New Residential Investment Corp, Michael Nierenberg has a lot of detailed knowledge about the residential mortgage loan investment market. This has been the case since being named CEO and President in 2013, and especially true since becoming Board Chair in 2016. Throughout this time, Mr. Nierenberg has been seen as an innovative leader in the industry because of a variety of high-profile moves he’s made with New Residential. Having said that, one aspect that he’s been focusing on in the past few years are Mortgage Servicing Rights, otherwise known as MSRs.

Throughout Michael Nierenberg’s time with New Residential Investment Corp, he’s always searched for a variety of undervalued assets, especially with MSRs. Through this, he’s found two key factors in determining whether or not they’ll be a successful investment. The first of these is that they have adequate capital resources to continue to expand. The second core principal is also focused on expansion, in this case being able to develop a variety of strong long-term relationships within the industry. If a business can’t meet this criterion, then they’re more than likely not to be a valuable asset, according to Mr. Nierenberg. Because of this approach, Michael Nierenberg has helped New Residential Investment Corp to grow significantly over the past half-decade.

For example, he was one of the main drivers behind the companies growth to managing $118 billion of Mortgage Servicing Rights in 2018 alone. Much of this was because of the innovative and something unique approach that Mr. Nierenberg has taken over his career. A lot of it has also been because Mr. Nierenberg has always taken an opportunistic approach to invest. On top of this, he’s developed an in-depth understanding of residential mortgages that have led him to be one of the foremost experts in the field. This knowledge has also helped drive Michael Nierenberg’s success, as he’s always keenly aware of the potential ramifications of any investment or change in the industry. With that in mind, he’s able to make informed decisions quickly and on a regular basis.

 

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