NEW YORK CITY—Mortgage REIT New Residential Investment Corp. (NRZ) said Wednesday afternoon it would buy approximately $72 billion in unpaid balance of mortgage servicing rights from PHH Mortgage Corp. The seasoned agency and private-label platform represents PHH's entire mortgage serving rights portfolio.
NRZ's wholly owned subsidiary, New Residential Mortgage LLC, will pay approximately $612 million to acquire the PHH portfolio. In addition, associated with the MSR purchase, NRM will purchase approximately $300 million of servicer advances from PHH Mortgage. PHH will subservice the 480,000 mortgage loans underlying the MSRs acquired by NRM for an initial period of three years.
Michael Nierenberg, NRZ's chairman and CEO, calls PHH “a great addition to our network of servicing partners, and we look forward to working closely with PHH. This transaction further demonstrates our role as one of the leading capital providers to the mortgage industry and our commitment to drive long-term earnings for our shareholders through the growth of our MSR portfolio.”
For PHH, headquartered in Mt. Laurel, NJ, the agreement with NRM represents “an important next step in our strategic review process and enables PHH to efficiently monetize its remaining owned MSR portfolio at the highest available price while maintaining the flexibility to maximize the value of our subservicing platform,” says president and CEO Glenn A. Messina. “We are continuing to evaluate the strategic options for our remaining business platforms and remain on track to complete the strategic review by the end of January 2017.”
Last month, PHH reached an agreement to sell its entire Ginnie Mae MSR portfolio and related advances to Lakeview Loan Servicing. As of Sept. 30, the underlying loans in PHH's Ginnie Mae MSR portfolio totaled $14.8 billion, and the portfolio had a total book value of $120 million.
The deal is expected to close in the second quarter of next year. NRZ is managed by an affiliate of Fortress Investment Group.
NRZ's wholly owned subsidiary, New Residential Mortgage LLC, will pay approximately $612 million to acquire the PHH portfolio. In addition, associated with the MSR purchase, NRM will purchase approximately $300 million of servicer advances from
Michael Nierenberg, NRZ's chairman and CEO, calls PHH “a great addition to our network of servicing partners, and we look forward to working closely with PHH. This transaction further demonstrates our role as one of the leading capital providers to the mortgage industry and our commitment to drive long-term earnings for our shareholders through the growth of our MSR portfolio.”
For PHH, headquartered in Mt. Laurel, NJ, the agreement with NRM represents “an important next step in our strategic review process and enables PHH to efficiently monetize its remaining owned MSR portfolio at the highest available price while maintaining the flexibility to maximize the value of our subservicing platform,” says president and CEO Glenn A. Messina. “We are continuing to evaluate the strategic options for our remaining business platforms and remain on track to complete the strategic review by the end of January 2017.”
Last month, PHH reached an agreement to sell its entire Ginnie Mae MSR portfolio and related advances to Lakeview Loan Servicing. As of Sept. 30, the underlying loans in PHH's Ginnie Mae MSR portfolio totaled $14.8 billion, and the portfolio had a total book value of $120 million.
The deal is expected to close in the second quarter of next year. NRZ is managed by an affiliate of Fortress Investment Group.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
