New Residential Investment Corp. is a well-known firm that specializes in investing in and managing, investments regarding residential real estate. The firm aims to drive strong risk-adjusted returns mainly via investments in Servicer Advances, Excess Mortgage Servicing Rights, Non-Agency residential mortgage backed securities as well as associated call rights. The company’s main objective is to work and improve their proven investment expertise in order to provide enthralling returns that will result in better dividends to their shareholders.
New Residential Investment Corp targets assets that can produce better cash flows and also put in place conservative capital structures, which can produce returns throughout various interest rate environments. The complexity of the mortgage loans within the United States has been increasing in the last few decades. It is true that the unfolding developments in the 21 trillion U.S. dollar residential housing market, is producing significant investment opportunities.
After the end of the financial crises, several changes are being experienced within the residential mortgage industry. The main structure changes are improving the manner in which mortgages are serviced, owned, and originated. These changes have created several attractive investment opportunities. New Residential Investment Corp is actually one of the few market participants with a combination of industry experience, capital as well as the key business relations with the capability of taking advantage of any opportunity that may arise.
More about New Residential Investment Corp
New Residential Investment Corp is actually a high quality income vehicle that has highly diversified investment portfolio as well as significant interest rate. Although the market in which the company operates is not doing very well, its shares have remained up there. The firm has invested in a huge range of mortgage assets: call rights, servicer advances, residential & consumer loans, residential securities, and mortgage servicing rights. The Mortgage servicing rights commonly referred to as MSRs takes the largest portion of the firm’s investment portfolio. Sometimes back, it represented approximately fifty-one percent of the company’s investments. The firm gets interests income from these especially when the amount paid for the Mortgage Serving Rights is above the basic amount.