LONDON, UK / ACCESSWIRE / August 30, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for New Residential Investment Corp. (NYSE: NRZ) (“New Residential”), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=NRZ. The Company announced on August 28, 2017, that it has entered into an eight-year Cooperative Brokerage Agreement with Altisource Portfolio Solutions S.A. (NASDAQ: ASPS) (“Altisource”), pursuant to which Altisource’s licensed real estate brokerage subsidiaries will provide marketing and listing services for real estate owned (REO) properties included in certain portfolios of mortgage loans for which New Residential has acquired, or will acquire, the mortgage servicing rights (MSR). For immediate access to our complimentary reports, including today’s coverage, register for free now at:
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The acquisition of such MSR portfolios remains subject to the approval of certain counterparties and other customary closing conditions.
Insights of the Cooperative Brokerage Agreement
As per the agreement, the MSR portfolios includes approximately $110 billion unpaid principal balance (UPB) non-agency MSR portfolio that New Residential agreed to acquire from certain subsidiaries of Ocwen Financial Corp. (“Ocwen”) in July 2017. It also includes $6 billion UPB non-agency MSR portfolio that New Residential agreed to acquire from certain subsidiaries of PHH Corp. in December 2016.
After the MSR portfolios are transferred to New Residential, Altisource’s licensed real estate brokerage subsidiaries will begin to receive REO referrals. New Residential’s licensed real estate brokerage subsidiary will receive a referral commission for each REO sold by Altisource.
The agreement also includes termination events, vendor oversight, audit rights and reporting requirements, and provisions designed to ensure pricing for REO marketing and listing services remains competitive throughout the term of the contract.
Terms of the Letter of Intent
Both the companies have entered into a letter of intent.
As per the terms of the letter of intent, New Residential and Altisource have agreed to sign a definitive services agreement, pursuant to which Altisource would exclusively provide certain fee-based services with respect to the Ocwen Portfolio.
In order to expand the relationship, New Residential and Altisource have also agreed to work together to seek new opportunities.
New Residential and Ocwen Financial Signed an Agreement Relating to MSR Transfer in July 2017
As per the press release, on July 24, 2017, New Residential and Ocwen signed definitive agreements for the transfer of Ocwen’s interest in mortgage servicing rights and sub-servicing relating to approximately $110 billion UPB of non-agency MSRs to New Residential.
New Residential Announced Purchase of MSR from PHH in December 2016
On December 29, 2016, New Residential, through its wholly-owned subsidiary New Residential Mortgage LLC, signed an agreement to purchase approximately $72 billion UPB of seasoned Agency and private-label MSRs from PHH Mortgage Corp. for a total purchase price of $612 million.
Partnership Believed to be Mutually Beneficial for both Companies
Michael Nierenberg, Chairman and Chief Executive Officer (CEO) of New Residential, expressed his pleasure on announcing this new partnership with Altisource. By leveraging Altisource’s suite of mortgage and real estate services, New Residential aims to maximize returns for investors in the underlying loans and improve the performance of its MSR portfolio. Michael believes this is a mutually beneficial partnership and New Residential looks forward to working closely with Altisource.
Agreement Likely to Strengthen Altisource’s Position as a Leading Service Provider of the Mortgage Industry
Commenting on the agreement, William B. Shepro, CEO of Altisource, mentioned that the Company is very pleased to establish a relationship with New Residential, one of the largest and most active mortgage servicing rights owners in the industry. He added that these agreements strengthen Altisource’s existing position as a leading provider of services to the mortgage industry, provide greater visibility into Altisource’s revenue and earnings from the Ocwen Portfolio, and provide a great opportunity to develop and grow relationships with New Residential and PHH Corp.
About Ocwen Financial Corp.
Founded in 1988, Ocwen provides residential and commercial mortgage loan servicing, special servicing, and asset management services. In August 2009, Ocwen completed the distribution of its Ocwen Solutions line of business via the spin-off of a separate publicly traded company, Altisource, allowing it to focus on its core servicing business.
About New Residential Investment Corp.
Founded in 2011, New Residential is a publicly traded real estate investment trust that focuses on investing in, and actively managing, investments primarily related to residential real estate. The Company primarily targets investments in mortgage servicing related assets and other related opportunistic investments.
About Altisource Portfolio Solutions S.A.
Incorporated in 1999, Altisource is a leader in providing services and technology for the mortgage and real estate industries. The Company is headquartered in Luxembourg, Luxembourg.
Last Close Stock Review
On Tuesday, August 29, 2017, the stock closed the trading session at $16.48, marginally down 0.48% from its previous closing price of $16.56. A total volume of 2.16 million shares have exchanged hands. New Residential Investment’s stock price rallied 2.42% in the past three months and 16.55% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 4.83%. The stock is trading at a PE ratio of 5.96 and has a dividend yield of 12.14%. The stock currently has a market cap of $5.07 billion.
At the close of trading session on Tuesday, August 29, 2017, Altisource Portfolio Solutions’ stock price rose 1.87% to end the day at $21.49. A total volume of 303.22 thousand shares were exchanged during the session, which was above the 3-month average volume of 202.57 thousand shares. The Company’s shares are trading at a PE ratio of 78.41. At Tuesday’s closing price, the stock’s net capitalization stands at $380.28 million.
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