Enterprising Investor
9 months ago
Rithm Capital Corp. Acquired $1.4bn of Marcus Loans from Goldman Sachs (7/20/23)
NEW YORK--(BUSINESS WIRE)--Rithm Capital Corp. (NYSE:RITM, “Rithm Capital” or the “Company”), an asset manager focused on the real estate and financial services industry, has announced the purchase of $1.4bn of prime unsecured consumer loans from The Goldman Sachs Group, Inc. (NYSE: GS or “Goldman Sachs”), a leading global financial institution. The portfolio was originated and serviced by Goldman Sachs through the Marcus program.
The pool represents a portion of the broader Marcus portfolio that was previously owned and held on balance sheet by Goldman Sachs. The pool is comprised of 100% fixed-rate closed-end installment loans in which ~95% of the pool was originated between 2021 Q4 and 2022 Q4 from the post-COVID demand boost. Acquiring these consumer loans allows for an opportunity for Rithm Capital to add discounted, short duration and high yielding prime credit consumer assets.
“This purchase is extremely attractive to us building off our past and current expertise in consumer finance,” said Michael Nierenberg, Chairman, Chief Executive Officer and President of Rithm Capital. “Consistent with our investment approach, we continue to look for opportunities to grow shareholder value and believe this transaction will be an excellent addition.”
ABOUT RITHM CAPITAL
Rithm Capital is an asset manager focused on the real estate and financial services industries. Rithm Capital’s investments in operating entities include leading origination and servicing platforms held through its wholly-owned subsidiaries, Newrez LLC, Caliber Home Loans Inc., and Genesis Capital LLC, as well as investments in affiliated businesses that provide residential and commercial real estate related services. The Company seeks to provide attractive risk-adjusted returns across interest rate environments. Since inception in 2013, Rithm Capital has delivered approximately $4.7 billion in dividends to shareholders. Rithm Capital is organized and conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes and is headquartered in New York City.
https://www.businesswire.com/news/home/20230720725716/en/
reddog3
1 year ago
Recently expert investors have been buying $NOVC Common Shares at sub-penny share price off NO NEWS, NO SEC Filings No Retail Bid/Ask courtesy of NOVC Board which has exploited SEC Rule 15c(2)-11. see https://www.marketscreener.com use NOVC
This is happening in my opinion because $NOVC Board of Directors has exploited SEC Rule 15c(2)-11 which allows ONLY expert investors (HF that file 13F) to BUY $NOVC common including Goldman Sachs 360K, Blackrock 260K BofA 676K, Putnam Investments 333K, Bridges Investment Mgt & Dreman Value Mgt 533K shares (The Great Value Investor David Dreman, Author of Contrarian Investment Strategies Edition one and two). They have bought millions of $NOVC shares at sub-penny stock prices, off NO RETAIL News NO retail Bid/Ask since NOVC Board triggered SEC Rule 15c2-11
My research shows $NOVC Board has been working with MassMutual sub-Barings, Jefferies (owns 20M NOVC Common per 13D filing 6/23/2011), and Softbank 100% own sub-Fortress & White Mountains Capital $WTM which owns www.EJFCap.com.
These investors own 100% of Novation Co OTCBB $NOVC common & the only Sr Debt to exit Ch 11 already paid $11m Cash, $6.3M inside Ch 11. Obviously, the only Sr Debt can be erased in seconds. I introduced Frank Bazos, ex-VP M&A at White Mountains Capital (now Special Advisor to $WTM) to the X CEO of $NOVC. $NOVC is now owned by White Mountains Capital via their investment in EJF Capital 2019 (the year Bazos joined WTM as VP M&A). Bazos via $WTM owns 80% of $NOVC common 91M 80% of 116M Shares Outstanding. I and a few privates own 25M $NOVC common shares. Plus Jefferies $JEF 20M is not counted in the 91M 80% per 13D 6/23/2011. Now expert investors some related to the Board are able to BUY $NOVC Novation Co Inc. off no retail news thanks to SEC Rule 15c2-11 https://www.marketscreener.com/quote/stock/NOVATION-COMPANIES-INC-120787360/company/â?¦
Why and what are their future intentions? I believe Fortress Co CEOs Wesley Edens, Peter Briger with Partners Co CEOs EJF Capital Manny Friedman, Neal Wilson $NOVC only Debt Holders & NOVC largest Common Equity Holders 31.3M 26% of all shares (hidden behind CDOs that paid almost nothing to own) in concert with Mass Mutual & Barings 20M and Jefferies that own 20M $NOVC common and NOVC Board owns at least 40M 35% of 116M Common Shares Outstanding will split off $NOVC prior tax exempt MREIT Novastar Financial Inc. (newname) which traded on NYSE as $NFI & monetize rights that control billions of rich, seasoned collateral assets ideal to be leveraged/securitized into a new MREIT Dividend. The remaining entity HCS www.healthcare-staffing.com est $55M Revenue will most likely be merged with Hudson Global RPO Recruiting Process Outsourcer aka Staffing $210M Revenue creating a quarter of a billions public company tax free thanks to NOVC $730M NOLs. It is possible the MREIT and HCS/NOVC’s HCS are both worth 10 to $30 per share plus dividends. Barry Igdaloff and his family and Rose Capital HF would turn a million worth of PS Series C stock 10M $NOVC common, most camouflaged into $600M Capital over 2 different public companies both tax free plus dividends. This is just what Barry Igdaloff and Howard Amter, Thomas Akin his pals Todd Emoff did at Dynex Capital NYSE $DX with Wesley R. Edens Co CEO of Fortress. See $NOVC 8K filed Friday 1/20/2023, long time investors states CPA firm top 100 CPA per AICPA Boulay Group signs off on $NOVC.
It would appear from Boulay's exit letter, that the reorg is finished. The letter
says that the accounting(actions) are all in order, as of Jan 20, 2023. I am guessing,
that one posters thought that $NOVC would be split up into at least two new companies
is the reason, both Tax Free one tax exempt MREIT 2nd use 730M NOLs. "The bomb should drop soon."
reddog3
1 year ago
The same investors that restructured $RITM formerly called/traded Newcastle Investment Corp $NCT now traded as Drive Shack $DS which kept 100% of $160M NOLs after spinning out 3 tax-exempt MREITs $GCI, $SNR sold for $2.3B months ago and New Residential Investment $NRZ now traded Rithm Capital $RITM & same investors that restructured Dynex Capital NYSE $DX from penny stock to $10/share (pre 3:1 split effectively $4 today 12/shr/3) are at it again at Novation Co $NOVC OTCBB.
They have laid $NOVC dormant thanks to these same investors triggering SEC Rule 15c2-11 which stops all retail news & SEC filings. Rule 15c2-11 still allows expert investors hedge fund's HF to trade Novation Companies Inc. OTCBB $NOVC even with No SEC filings, and No News. MarketScreener shows recent BUYS since NOVC Board triggered this SEC Rule including many related investors Goldman Sachs 360K $NOVC common, Blackrock 260K $NOVC common, David Dreman's Dreman Value Mgt buys 533K $NOVC common, Putnam Investments bus 387K $NOVC common Bank of America Buys 671K $NOVC common shares aka they have bought millions of Novation Companies Inc. OTCBB $NOVC common shares just since $NOVC Board triggered SEC Rule 15c2-11 https://www.marketscreener.com/quote/stock/NOVATION-COMPANIES-INC-120787360/company/ See Extract Bottom
The reason for this buying is $NOVC Board ex $DX NYSE Dynex Capital Board Members and Investors I believe will split $NOVC into public companies one tax-exempt MREIT using CCR cleanup call rights aka rights that control future use of billions of rich, seasoned collateral assets ideal to be securitized into MREIT dividend and another mgt fee for Fortress like over $150M $RITM aka $NRZ aka $NCT paid Fortress every year on top of dividends. Fortress recently terminated this Management Agreement pickup $400M whopping Terminations Fee. This fee can be replaced by $NOVC. See CCR rights are defined in Section 5.04 of Service Rights Transfer Agreement see Exhibit 2.1 of 10Q filed by $NOVC formerly traded as tax-exempt MREIT on NYSE $NFI Novastar Financial Inc. which is a subsidiary of $NOVC and holds these CCR.
Extract from MarketScreener $NOVC
Name Title Age Since
Michael Wyse Chief Restructuring Officer 45 2022
Members of the board
Name Title Age Since
Barry A. Igdaloff Chairman 67 -
Howard M. Amster Independent Director 74 2009
Equities
Vote Quantity Free-Float Company-owned shares Total Float
Stock A 1 116,155,893 87,495,395 75.3% 0 0.0% 75.3%
Shareholders
Name Equities %
Barings LLC 19,258,775 16.6%
Barry A. Igdaloff 3,529,707 3.04%
Talkot Capital LLC 1,901,500 1.64%
Bank of America, NA (Private Banking) 670,722 0.58%
Dreman Value Management LLC 533,125 0.46%
Bridges Investment Management, Inc. 478,766 0.41%
Putnam Investment Management LLC 386,880 0.33%
Goldman Sachs & Co. LLC (Private Banking) 359,640 0.31%
General Electric Co. (Investment Company) 333,333 0.29%
BlackRock Fund Advisors 259,936 0.22%
Company contact information
Novation Cos., Inc.
9229 Ward Parkway
Suite 340
Kansas City, MO 64114
Phone : +1.816.237.7000
Web : http://novationcompanies.com
Enterprising Investor
1 year ago
If You Invested $1,000 In Rithm Capital (RITM) Stock At Its COVID-19 Pandemic Low, Here's How Much You'd Have Now (1/06/23)
BY Benzinga
Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two and a half years. But there was no question some big-name stocks performed better than others since the pandemic bottom.
New Residential's Bumpy Ride: One company that has been an impressive investment in the past two and a half years has been mortgage REIT New Residential Investment, now known as Rithm Capital Corp NYSE:RITM.
New Residential and other mortgage REITs were crushed in March 2020 as the pandemic created incredibly difficult financial conditions for the companies.
Recession fears tanked the value of New Residential's mortgage-backed securities (MBS). The company was ultimately forced to sell assets in unfavorable market conditions to shore up its balance sheet. It was also forced into a dividend cut.
Before the crisis, New Residential focused on originating mortgages that didn't qualify to be purchased by Federal National Mortgage Association (OTC:FNMA) or Federal Home Loan Mortgage Corp (OTC:FMCC). The lack of liquidity in the mortgage market during the COVID-19 crisis prompted New Residential to completely shift its business model to focus on mortgages that met Fannie Mae and Freddie Mac's purchase qualifications.
At the beginning of 2020, New Residential shares were trading at $16.16. By the beginning of March, the stock was down to $15.68 as news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.
When the market crashed during the U.S. COVID-19 outbreak, New Residential shares dropped as low as $2.91 on April 3, 2020, during the height of the pandemic fears.
When the market bounced off pandemic lows, New Residential began to rebound as well. The stock reached $9.42 per share in June before the recovery rally fizzled out.
New Residential Mortgage regained the momentum of the broader market in the second half of 2020. The stock was back up above $10 by the end of the year.
New Residential In 2023, Beyond: As mortgage market conditions improved in 2021, New Residential started acquiring smaller lenders and expanding its market share.
New Residential stock hit its 2021 highs of $11.81 in November before pulling to finish off the year. The stock dipped back to as low as $6.86 in September 2022 after New Residential internalized its management and rebranded as Rithm Capital in June 2022. Today, shares are hovering around $8.44.
Still, investors who bought New Residential on the day it hit its 2020 pandemic low and held on have generated a positive return on their investment. In fact, $1,000 in New Residential stock bought on Apr. 3, 2020, would be worth about $3,394 today, assuming reinvested dividends.
Looking ahead, analysts are expecting Rithm's stock to continue to recover in the next 12 months. The average price target among the 11 analysts covering the stock is $12, suggesting 41.8% upside from current levels.
Enterprising Investor
2 years ago
New Residential Investment Corp. Announces Internalization and Rebrand to Rithm Capital, and Declares Second Quarter 2022 Dividends (6/17/22)
NEW YORK--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE: NRZ) (“NRZ” or the “Company”) announced today it has entered into agreements providing for the internalization of the Company’s management function.
In conjunction with the internalization, the Company announced plans to change its name and rebrand as Rithm Capital Corp. (NYSE: RITM) (“Rithm Capital”).
Internalization Agreement
Under the Internalization Agreement, the parties have terminated the Management and Advisory Agreement, dated May 7, 2015 (the “Management Agreement”), effective as of June 17, 2022 (the “Effective Date”). In connection with the termination of the Management Agreement, the Company has agreed to pay FIG LLC (the “Manager”) $400 million, with $200 million paid on the Effective Date, $100 million payable on September 15, 2022 and $100 million payable on December 15, 2022.
As a result of the termination of the Management Agreement, and subject to an agreed upon transition described in more detail below, NRZ has ceased to be externally managed and now operates as an internally managed REIT.
Continuing Strong Leadership Team
The Company will continue to be managed by its strong senior leadership team, with Michael Nierenberg as Chairman of the Board, Chief Executive Officer and President and Nick Santoro as Chief Financial Officer and Chief Accounting Officer. In addition, the Company intends to retain employees of the Manager who currently serve in key roles at the Company, including, but not limited to, those who support NRZ’s investment, legal, accounting, tax and treasury operations.
Expected Key Benefits of the Internalization
The Company estimates that the internalization will result in approximately $60 to $65 million of cost savings, or $0.12 to $0.13 per diluted share1, per year.
“We believe the internalization positions the Company for long-term success,” said Michael Nierenberg, Chairman, Chief Executive Officer and President of New Residential. “We view this transaction as a way to drive value for shareholders with expected cost savings, incremental synergies and ability to leverage employees across the NRZ ecosystem.”
“Our strategy has not changed – we will continue to focus on opportunities across the financial services landscape,” continued Mr. Nierenberg. “We are excited about the Company’s future and look forward to continuing to produce great returns for our shareholders.”
Rebranding to Rithm Capital
The Company’s name change and rebranding to Rithm Capital are intended to highlight a new chapter in the Company’s evolution and reinforce its position as a leading diversified company in the financial services and real estate sectors.
“We are taking this opportunity to rebrand to Rithm Capital and demonstrate the growth of our Company,” said Mr. Nierenberg. “We have changed dramatically since our inception, from an owner of MSR assets to a company with complementary operating companies and a unique portfolio of investments. The new name and brand help distinguish us from our operating companies, including Newrez, and reflect our culture, team and ambitions for growth beyond residential mortgages.”
The name change will take effect on or about August 1, 2022 pursuant to customary notices, and the Company’s new website will be www.RithmCap.com.
Transition Services Agreement
The Company and the Manager also entered into a Transition Services Agreement (the “Transition Services Agreement”), pursuant to which the Manager will provide (or cause to be provided), at cost, all of the services it was previously providing to the Company immediately prior to the Effective Date until December 31, 2022. The Transition Services Agreement may be terminated earlier in accordance with its terms or if the Company and the Manager agree that no further services are required.
Former Manager
Prior to the internalization, the Company was externally managed by the Manager, an affiliate of Fortress Investment Group LLC, subject to oversight by the board of directors of the Company (the “Board”), pursuant to the Management Agreement. In accordance with the Management Agreement, the Manager provided the Company with a management team, other personnel and corporate infrastructure. Accordingly, the individuals who provided services to the Company were employees of the Manager. In exchange for the Manager’s services, the Company paid the Manager certain fees, including a management fee and, subject to performance, an incentive fee. The Company also reimbursed the Manager for certain costs.
Special Committee of the Board of Directors
The Board formed a Special Committee composed entirely of independent and disinterested directors to negotiate and approve the terms of the internalization. In connection with the internalization, Jones Lang LaSalle Securities, LLC, an affiliate of Jones Lang LaSalle Americas, Inc., served as financial advisor and Goodwin Procter LLP served as counsel to the Special Committee, and Citigroup Global Markets Inc. served as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as counsel to the Manager.
Second Quarter 2022 Common and Preferred Dividends
Common Stock Dividend
The Board declared a quarterly dividend of $0.25 per share of common stock for the second quarter 2022. The second quarter common stock dividend is payable on July 29, 2022 to shareholders of record on July 1, 2022.
Preferred Stock Dividends
In accordance with the terms of the Company’s 7.50% Series A Cumulative Redeemable Preferred Stock (“Series A”), the Board declared a Series A dividend for the second quarter 2022 of $0.4687500 per share.
In accordance with the terms of the Company’s 7.125% Series B Cumulative Redeemable Preferred Stock (“Series B”), the Board declared a Series B dividend for the second quarter 2022 of $0.4453125 per share.
In accordance with the terms of the Company’s 6.375% Series C Cumulative Redeemable Preferred Stock (“Series C”), the Board declared a Series C dividend for the second quarter 2022 of $0.3984375 per share.
In accordance with the terms of the Company’s 7.00% Series D Fixed-Rate Reset Cumulative Redeemable Preferred Stock (“Series D”), the Board declared a Series D dividend for the second quarter 2022 of $0.4375000 per share.
Dividends for the Series A, Series B, Series C and Series D are payable on August 15, 2022 to preferred shareholders of record on July 15, 2022.
(1)
Cost savings per diluted share based on 484,144,724 estimated weighted average diluted shares as of June 30, 2022.
INVESTOR CONFERENCE CALL
New Residential’s management will host a conference call on Tuesday, June 21, 2022 at 8:00 A.M. Eastern Time. A copy of the presentation will be posted to the Investor Relations section of New Residential’s website, www.newresi.com.
All interested parties are welcome to participate on the live call. The conference call may be accessed by dialing 1-833-974-2382 (from within the U.S.) or 1-412-317-5787 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “New Residential Investor Update Call.” In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10168094/f350652cf2.
A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.newresi.com. Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast.
A telephonic replay of the conference call will also be available two hours following the call’s completion through 11:59 P.M. Eastern Time on Tuesday, June 28, 2022 by dialing 1-877-344-7529 (from within the U.S.) or 1-412-317-0088 (from outside of the U.S.); please reference access code “3092902.”
ABOUT NEW RESIDENTIAL INVESTMENT CORP.
New Residential Investment Corp. is a leading provider of capital and services to the mortgage and financial services industry. The Company’s mission is to generate attractive risk-adjusted returns in all interest rate environments through a complementary portfolio of investments and operating businesses. Since inception in 2013, the Company has delivered approximately $4.0 billion in dividends to shareholders. The Company’s investment portfolio is composed of mortgage servicing related assets (full and excess MSRs and servicer advances), residential securities (and associated call rights) and loans (including single family rental), and consumer loans. The Company’s investments in operating entities include leading origination and servicing platforms through wholly-owned subsidiaries, Newrez LLC, Caliber Home Loans Inc., and Genesis Capital LLC, as well as investments in affiliated businesses that provide mortgage related services. The Company is organized and conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes, and is headquartered in New York City.
https://www.businesswire.com/news/home/20220617005477/en/
Enterprising Investor
3 years ago
New Residential Investment Corp. to Acquire Caliber Home Loans, Inc. (4/15/21)
New Residential to combine NewRez and Caliber platforms into premier financial services company
- Purchase Price to Tangible Book Multiple of 1.0x1
- Adds $141 Billion UPB of MSRs
- Combination of Complementary and Leading Mortgage Platforms
- Broadens Customer Retention Efforts with Strong Recapture Platform
- Enhances Purchase Origination Capabilities with Extensive Retail Footprint
- Increases Asset Generation Capabilities and Opportunities
- Accretive to 2022 Return on Equity2
NEW YORK--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE: NRZ; “New Residential” or the “Company”) announced today that it has entered into a definitive agreement with an affiliate of Lone Star Funds (“Lone Star”) to acquire Caliber Home Loans, Inc. (“Caliber”). With this acquisition, New Residential intends to bring together the platforms of Caliber and NewRez LLC (“NewRez”), New Residential’s wholly owned mortgage originator and servicer. The transaction is intended to close as quickly as possible, subject to various approvals and customary closing conditions, and is targeted for the third quarter of 2021.
“We believe this is a terrific acquisition for our Company,” said Michael Nierenberg, Chairman, Chief Executive Officer and President of New Residential. “Over the years, Caliber’s experienced team has built a differentiated purchase-focused originator with an impressive retail franchise and solid track record in customer retention. The combination of NewRez and Caliber’s platforms will create a premier financial services company with scale, talent, technologies and products to accelerate our mortgage company objectives and generate strong earnings for our shareholders. With this acquisition, we have significantly strengthened our capabilities to perform across interest rate environments.”
“We are excited to be joining the New Residential family,” said Sanjiv Das, Chief Executive Officer of Caliber. “By combining platforms with NewRez, we will join another industry pioneer that has complementary strengths and is committed to delivering the dream of homeownership. Our combination of strategies will allow us to accelerate our leading position in purchase lending, grow our digital direct to consumer and broker initiatives, and further propel our retail franchise. As we leverage our digitization investments, we will make the entire mortgage process faster, easier and more efficient. We are thrilled to have the opportunity to deepen our customer relationships, expand our customer reach and provide more industry-leading products and options to our customers.”
“This transaction is yet another important milestone for NewRez as we continue to expand our business, grow our customer reach and provide more options to support our homeowners and clients,” said Baron Silverstein, President of NewRez. “Combining with Caliber’s platform emphasizes our commitment to positioning our business for long-term success while continuing to deliver significant value for our customers, our partners and our employees.”
Transaction Highlights
The combination of platforms is intended to bring together two complementary leading mortgage strategies with deep commitments to the borrowers they serve.
The acquisition is expected to:
Grow and strengthen earnings profile across rate environments
Broaden customer retention efforts with industry leading recapture platform
Enhance purchase origination capabilities with extensive distributed retail platform
Add to New Residential’s asset base with attractive portfolio of MSRs
Increase New Residential's asset generation capabilities and opportunities
Provide talent, scale and capacity to support growth
Improve technologies to support customer experience and employee efficiency
Accelerate New Residential’s mortgage platform objectives
Be accretive in the first full calendar year following the close of the acquisition2
Caliber Highlights
Leader in the large and growing United States mortgage market
$80 billion UPB of funded origination volume in 2020
$153 billion UPB servicing portfolio with approximately 630,000 customers as of December 31, 2020
Recapture rate of 54% demonstrates strength of Caliber’s integrated mortgage platform
Broad distributed retail platform with extensive local footprint across the United States
Proven track record of purchase origination volume and profitability across rate environments
2020 Pre-Tax Income of $891 million and return on equity of 53%
Attractive earnings performance and financial profile
Transaction Details
Under the terms of the agreement, which were unanimously approved by New Residential’s board of directors, New Residential will pay a cash consideration of $1.675 billion, or approximately 1.0x expected tangible book value at closing1, to acquire Caliber.
Financing
New Residential intends to finance the acquisition through a mix of existing cash and available liquidity on the New Residential and Caliber combined balance sheet as well as a mix of equity and the sale of certain investment securities.
Advisors
Citigroup Global Markets Inc. and Goldman Sachs & Co. acted as financial advisors to New Residential and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to New Residential. Credit Suisse Securities (USA) LLC and Barclays acted as financial advisors to Lone Star and Caliber and Mayer Brown LLP acted as legal advisor to Lone Star and Caliber.
Investor Call Details
New Residential will host a conference call at 8:00 A.M. Eastern Time on Wednesday, April 14, 2021 to discuss the acquisition. A supplemental presentation discussing the acquisition is available at newresi.com/investors. The conference call may be accessed by dialing 1-866-777-2509 (from within the U.S.) or 1-412-317-5413 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “New Residential Acquisition Call.” In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10154271/e6332ce6a8. A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.newresi.com. Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast.
This press release does not constitute an offer to sell or the solicitation of an offer to buy shares of common stock, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
ABOUT NEW RESIDENTIAL
New Residential is a leading provider of capital and services to the mortgage and financial services industry. The Company’s mission is to generate attractive risk-adjusted returns in all interest rate environments through a portfolio of investments and operating businesses. New Residential has built a diversified, hard-to-replicate portfolio with high-quality investment strategies that have generated returns across different interest rate environments over time. New Residential’s portfolio is composed of mortgage servicing related assets (including investments in operating entities consisting of servicing, origination, and affiliated businesses), residential securities (and associated called rights) and loans, and consumer loans. New Residential’s investments in operating entities include its mortgage origination and servicing subsidiary, NewRez, and its special servicing division, Shellpoint Mortgage Servicing, as well as investments in affiliated businesses that provide services that are complementary to the origination and servicing businesses and other portfolios of mortgage related assets. Since inception in 2013, New Residential has a proven track record of performance, growing and protecting the value of its assets while generating attractive risk-adjusted returns and delivering over $3.6 billion in dividends to shareholders. New Residential is organized and conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes. New Residential is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm, and headquartered in New York City.
ABOUT NEWREZ
NewRez is a leading nationwide mortgage lender and servicer. As a lender, NewRez focuses on offering a breadth of industry-leading products, supported by a loan process that blends both human interaction and the benefits of technology into an unparalleled customer experience. Founded in 2008 and licensed to lend in 50 states, NewRez is headquartered in Fort Washington, Pennsylvania and operates multiple lending channels, including Direct to Consumer, Joint Venture, Wholesale and Correspondent. The servicing business operates through NewRez Servicing, the performing loan servicing division, Shellpoint Mortgage Servicing, the special servicing division. NewRez also has several affiliates that perform various services in the mortgage and real estate industries. These include Avenue 365 Lender Services, LLC, a title agency, and eStreet Appraisal Management LLC, an appraisal management company. NewRez is member of the New Residential family.
ABOUT CALIBER
Caliber is a proven leader in the U.S. mortgage market with a diversified, customer-centric, purchase-focused platform with headquarters in Coppell, Texas. Caliber is an approved Seller/Servicer for both Fannie Mae and Freddie Mac, an approved issuer for Ginnie Mae and is an approved servicer for FHA, VA and the USDA. Caliber carries multiple servicer ratings from Standard & Poor's, Moody's, Fitch and DBRS.
1 Based on estimated closing tangible book value at September 30, 2021, subject to certain downward adjustments.
2 Refers to projected 2022 Return on Equity.
https://www.businesswire.com/news/home/20210414005417/en/New-Residential-Investment-Corp.-to-Acquire-Caliber-Home-Loans-Inc.
Enterprising Investor
4 years ago
New Residential Investment Corp. Declares Second Quarter 2020 Common and Preferred Stock Dividends (6/22/20)
NEW YORK--(BUSINESS WIRE)--New Residential Investment Corp. (“NRZ,” “New Residential,” the “Company”) announced today that its Board of Directors (the “Board”) has declared second quarter 2020 common and preferred stock dividends.
“We are pleased to announce a common dividend increase for the second quarter of 2020,” said Michael Nierenberg, Chairman, Chief Executive Officer and President of New Residential. “While the COVID-19 pandemic wreaked havoc on markets during the first quarter, we have seen strong improvement throughout the second quarter as government stimulus programs and positive market sentiment have helped stabilize markets. During the second quarter, our operating company has continued to perform well, non-agency asset values have increased, and we have meaningfully decreased the mark to market exposure of our portfolio. We are confident that our operating business and investment portfolio will continue to help create value for our shareholders.”
Common Stock Dividend
The Board declared a quarterly dividend of $0.10 per common share for the second quarter 2020. The dividend is payable on July 31, 2020 to common shareholders of record on July 2, 2020.
Preferred Stock Dividends
In accordance with the terms of New Residential’s 7.50% Series A Cumulative Redeemable Preferred Stock (“Series A”), the Board declared a Series A dividend for the second quarter 2020 of $0.46875 per share.
In accordance with the terms of New Residential’s 7.125% Series B Cumulative Redeemable Preferred Stock (“Series B”), the Board declared a Series B dividend for the second quarter 2020 of $0.4453125 per share.
In accordance with the terms of New Residential’s 6.375% Series C Cumulative Redeemable Preferred Stock (“Series C”), the Board declared a Series C dividend for the second quarter 2020 of $0.3984375 per share.
Dividends for the Series A, Series B and Series C are payable on August 14, 2020 to preferred shareholders of record on July 15, 2020.
ABOUT NEW RESIDENTIAL
New Residential is a leading provider of capital and services to the mortgage and financial services industries with a proven track record of returns and performance. The Company’s mission is to generate attractive risk-adjusted returns in all interest rate environments through a portfolio of investments and operating businesses. New Residential has built a diversified, hard-to-replicate portfolio with high-quality investment strategies that have generated returns across different interest rate environments over time. New Residential’s portfolio is composed of mortgage servicing related assets (including investments in operating entities consisting of servicing, origination, and affiliated businesses), residential securities (and associated called rights) and loans, and consumer loans. New Residential’s investments in operating entities include its mortgage origination and servicing subsidiary, NewRez, and its special servicing division, Shellpoint Mortgage Servicing, as well as investments in affiliated businesses that provide services that are complementary to the origination and servicing businesses and other portfolios of mortgage related assets. Since inception in 2013, New Residential has a proven track record of performance, growing and protecting the value of its assets while generating attractive risk-adjusted returns and delivering approximately $3.3 billion in dividends to shareholders. New Residential is organized and conducts its operations to qualify as a real estate investment trust (“REIT”) for federal income tax purposes. New Residential is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm, and headquartered in New York City.
https://www.businesswire.com/news/home/20200622005691/en/New-Residential-Investment-Corp.-Declares-Quarter-2020
Enterprising Investor
4 years ago
New Residential Investment Corp. Bolsters Strong Capital Position and Provides Company Updates (5/20/20)
New Residential Investment Corp. (NYSE: NRZ; “New Residential” or the “Company”) today announced a $600 million capital raise through entry into a private senior secured loan agreement structured and led by Canyon Partners, LLC (“Canyon”) with participation from credit funds managed by affiliates of Fortress Investment Group LLC (“Fortress”).
“This partnership with Canyon and Fortress provides us with additional financial flexibility, bolsters our balance sheet and creates a pool of capital to be opportunistic,” said Michael Nierenberg, Chairman, Chief Executive Officer and President of New Residential. “Today’s announcement is a testament to the value of our overall platform and we believe this capital raise will enable us to continue executing on our strategy of generating long-term value for our shareholders.”
Canyon and Fortress will also receive warrants to acquire the Company’s common stock at specific prices over a three year period. The senior secured loan agreement and the issuance of the warrants were unanimously approved by the independent members of the Company’s board of directors and by the members of the audit committee of the Company’s board of directors.1
Additional Company Updates
Liquidity Update
As of May 15, 2020, the Company had approximately $516 million of cash and cash equivalents on its balance sheet.
Following the closing of the announced capital raise, the Company expects to have approximately $1.1 billion of cash and cash equivalents on its balance sheet.
Book Value Update
The Company announced that estimated book value per common share as of May 15, 2020 is unchanged relative to March 31, 2020 reported book value per common share of $10.71.2
Financing Update
Residential Loan Financing – The Company has preliminary agreements on term non mark-to-market financing with various counterparties which are anticipated to close within the next 30 days. Upon closing, approximately 90% of the outstanding residential loan portfolio will be term non mark-to-market financed.
Residential Securities Financing – Continued success in terming out non-agency exposure, including residential mortgage backed securities, with limited mark-to-market risk.
MSR Financing – As part of New Residential’s broader initiative across the mortgage servicing rights (“MSR”) portfolio, the Company has a preliminary agreement with its largest bank lender to extend the existing MSR financing through the end of 2020.
NewRez LLC (“NewRez”) Origination Activity Update
NewRez originated $2.7 billion UPB in April 2020.
We are maintaining our FY’20 origination volume guidance of $45 billion UPB.
NewRez continues to focus its origination activity on Fannie Mae, Freddie Mac and Ginnie Mae eligible loans across its four origination channels.
Gain on sale margins continue to be robust.
Servicing Portfolio and Advance Financing Update
NewRez is committed to supporting homeowners overcome financial hardship and helping borrowers stay in their homes by offering all available relief and protections for which they are eligible under the CARES Act and other applicable guidelines.
Forbearance requests have continued to be lower than previously forecasted.
Through May 15, 2020, a total of approximately 240,000 borrowers in our portfolio, representing approximately 8.0% of our aggregate MSR portfolio, have been granted COVID-19 forbearances.
The rate of borrowers in forbearance making their monthly payments continues to be higher than modeled, further reducing our projected advancing obligations.
The average daily number of COVID-19 forbearance requests in May 2020 is less than 3,000 per day after peaking at over 21,000 in a single day in late March 2020.
We continue to work with Ginnie Mae on an advance financing facility (principal and interest (“P&I”), taxes and insurance (“T&I”) and corporate advances).
Since March 31, 2020, we have increased our committed advance financing capacity by $1.8 billion, to a total of $5.25 billion.3
Summary of Recent Policy Announcements Impacting Servicer Advances
Recent programs announced by the Federal Housing Finance Agency (“FHFA”), Fannie Mae, Freddie Mac, and Ginnie Mae have been supportive of the servicing industry and are expected to help homeowners.
The announcement from Ginnie Mae on May 14, 2020 provides issuers with temporary relief from enforcement of Ginnie Mae’s delinquency thresholds by removing delinquencies occurring on or after April 2020 when calculating Ginnie Mae delinquency ratios.
The announcement from FHFA on May 13, 2020 offering a streamlined deferral program (starting July 1, 2020) limits New Residential’s projected advancing obligations on GSE loans by incentivizing servicers to offer deferrals to homeowners in COVID-19 forbearances.
The announcement from the FHFA on April 21, 2020 to limit servicer P&I advance obligations on Fannie Mae and Freddie Mac loans to four months significantly reduces New Residential’s projected advancing obligations for GSE loans in COVID-19 forbearances.
The announcement from Ginnie Mae on April 10, 2020 establishing the Pass-Through Assistance Program (“PTAP”) provides Ginnie Mae issuers with a 100% LTV financing solution of last resort for Ginnie Mae P&I advances.
Moelis & Company and Citigroup Inc. served as strategic advisors to New Residential. Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to New Residential. Sullivan & Cromwell LLP served as legal counsel to Canyon.
ABOUT NEW RESIDENTIAL
New Residential is a leading provider of capital and services to the mortgage and financial services industry. The Company’s mission is to generate attractive risk-adjusted returns in all interest rate environments through a portfolio of investments and operating businesses. New Residential has built a diversified, hard-to-replicate portfolio with high-quality investment strategies that have generated returns across different interest rate environments over time. New Residential’s portfolio is composed of mortgage servicing related assets (including investments in operating entities consisting of servicing, origination, and affiliated businesses), residential securities (and associated called rights) and loans, and consumer loans. New Residential’s investments in operating entities include its mortgage origination and servicing subsidiary, NewRez, and its special servicing division, Shellpoint Mortgage Servicing, as well as investments in affiliated businesses that provide services that are complementary to the origination and servicing businesses and other portfolios of mortgage related assets. Since inception in 2013, New Residential has a proven track record of performance, growing and protecting the value of its assets while generating attractive risk-adjusted returns and delivering approximately $3.3 billion in dividends to shareholders. New Residential is organized and conducts its operations to qualify as a real estate investment trust (“REIT”) for federal income tax purposes. New Residential is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm, and headquartered in New York City.
1 For additional information, please refer to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 20, 2020.
2 The estimated book value is based primarily on management’s estimates of its assets as of May 15, 2020 and not on third party valuations. While the Company believes that such estimates are based on reasonable assumptions and information available to it as of May 15, 2020, actual results may vary, and such variations may be material. Furthermore, the extreme volatility and turmoil that currently riles the financial markets makes estimates of asset values even less reliable than usual.
3 $625 million of $1.8 billion additional capacity has been agreed to in principle but is subject to definitive documentation. There can be no assurance that we will complete such definitive documentation or close such financing.
https://www.businesswire.com/news/home/20200520005369/en/
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