New Residential closed another huge mortgage servicing rights deal earlier this month, in addition to an earlier deal inked two months ago with affiliate Nationstar Mortgage.
The latest deal includes MSRs from the Bank of America (BAC) transaction with Nationstar (NSM). BofA sold more than $10 billion in MSRs to Nationstar.
The latest closing relates to those BofA loans — held in private label securitizations with an unpaid principal balance of $43 billion, representing 45% of the Nationstar acquisition.
New Residential (NRZ) previously picked up an MSR portfolio with an unpaid principal balance of approximately $23 billion, composed of agency residential mortgage loans, from Nationstar.
In that deal, New Residential invested $38 million to acquire the right to receive one-third of the monthly cash flow generated by the MSRs.
Currently, New Residential invested approximately $53 million to acquire the right to receive one-third of the monthly cash flow generated by the mortgage servicing rights. As before, Nationstar retains one-third interest in the portfolio. New Residential does not own the right, technically, and holds no liability.
New Residential is a real estate investment trust spin off from Newcastle Investment (NCT). Nationstar is managed by Fortress Investment Group (FIG).
