New Residential Investment Corp is an entity in the real estate industry, and its focus is on residential property sector where it not only invests in it, but it is also involved in management activities. The company was incorporated in 2011 and its headquarters are in New York. The organization has grown by dealing with MSRs (mortgage servicing rights) as well as Excess MSRs as part of its business strategy. It also has operations in real estate securities, servicer advances, consumer loans, and mortgage loans. New Residential Investment Corp has also established itself in the market by making acquisitions. In 2017, the company purchased Shellpoint Partners for $190 million.
This move has allowed New Residential Investment Corp to expand more in the mortgage lending aspect of the mortgage industry since this is Shellpoint’s strength. Currently, the face value of New Residential Investment Corp comprises of MSRs. The entity gets income from this aspect of the industry when an MSR fee is more than the basic amount. The carrying value of the company’s portfolio is characterized by loans extended to accommodate payments that have not been made by homeowners or mortgage service advances. It is relevant to note that a majority of the securities have a lifespan that is either short-term or medium-term. New Residential Investment Corp is also known to invest in non-agency and agency RMBS (residential mortgage securities).
When examining the company’s portfolio, it is clear that it has interest in mortgage pass-through certificates, which make up its agency RMBS. It is also part of agency RMBS through interest only. Additionally, it also utilizes to-be-announced forward contract arrangements. The company is part of non-agency RMBS through hybrid adjustable-rate, adjustable and fixed rate mortgages. New Residential Investment Corp is under the leadership of Michael Nierenberg as he is the one in the chief executive officer position. He is also the chairman of the board and the company’s president. Due to the potential that the real estate industry in the U.S market holds, the company is expected to grow or expand significantly in the future. People anticipate that it will venture more in markets outside the United States.