Rithm Capital Corp (RITM)

[wodehouse]

OT-are you still following RFNS?

[Enterprising Investor]

Shellpoint Partners LLC was acquired in 2018.

[Canna_Business]

Is this the parent company of "Shellpoint Mortgage, NY"? Any information on that will be greatly appreciated.

[Enterprising Investor]

Mortgage profits hit multiyear high as revenue wavers (11/21/19)

Lender profitability rose to a high not seen since 2012 in the Mortgage Bankers Association's latest quarterly report despite some variability in revenue generated per loan.

Independent mortgage banks and mortgage subsidiaries of chartered banks recorded a net gain of $1,924 per loan in the third quarter, up from $1,675 in the second quarter. Mortgage profitability hasn't been that high since the fourth quarter of 2012, a figure in marked contrast to the $480 in per-loan profit reported a year ago, when rates were higher.

MBA-profits

"The increase in profits was primarily driven by declining production expenses and higher loan balances, which mitigated the effects of lower basis-point revenue," Marina Walsh, the MBA's vice president of industry analysis, said in a press release.

The average first-mortgage balance rose to a study high of $276,053 in the third quarter. Total loan production expenses were $7,217 per loan, down from $7,725 the previous quarter and $8,714 a year ago.

But total production revenue — a combination of fee income, net secondary marketing income and warehouse spread expressed as a percentage of the loan balance — dropped to 349 basis points. In comparison, total production revenue was 370 basis points in the second quarter, and 358 basis points in the third quarter of last year.

In dollars, total production revenue was lower than during the previous quarter but up compared to last year's third quarter at $9,142. In comparison, total production revenue was $9,400 in the second quarter and $8,654 in the third quarter of 2018.

The percentage of mortgage companies that generated net financial profits on a pretax basis was relatively higher in the third quarter of 2019 at 91%. The percentage of profitable participants in the MBA's study was 85% in the second quarter and 71% in the third quarter of last year.

https://www.nationalmortgagenews.com/news/mortgage-profits-hit-multiyear-high-as-revenue-wavers

[fung_derf]

What the what??!!

[fung_derf]

Just added some.

[fung_derf]

I've never been a fan of buying on margin although I guess it has its place.
Other than that, your post makes sense to me.

[Enterprising Investor]

I just kept averaging down.

However, the market price is now once again above my average cost, which means only reinvesting dividends.

My net return using margin remains close to 10 percent, thanks to a cost of funds of 3.06 percent at IBKR. Based on my average cost, a $100,000 cash investment produces $13,000 in annual dividends. By doubling my investment with borrowed funds, I earn $26,000 in dividends, pay about $3,000 in margin interest and net $23,000 per year.

Rates rise, MSRs are worth more. Rates decline, gain on sale on refinances plus MSRs tied to the new loans extend duration.

The 10-year Treasury rate has started to rise in the last month. Investors have pushed the market price of NRZ up because recapture rates on refinances are no where near 100 percent. It’s more like 40 percent.

As rates rise long term, NRZ becomes worth more.

[fung_derf]

Broke through resistance now? Hmmmmm...what to do...

[fung_derf]

I base it one where it finishes the week. As we can see now, it did not break through, but instead just tested and fell back again. At least so far.
If it drops back below $15.50 for the week, seems like confirmation of a failed attempt.

[Enterprising Investor]

Resistance broken.

[fung_derf]

We definitely have different investment strategies

[leftovers]

You are correct dividend Capture doesn't always work! I closed my eyes when in hit 14.47 but, was prepared to hold if necessary. I wasn't looking for 15.95 just a quick hit and run job to collect. The last 2 quarters I got lucky and was able to use the funds elsewhere. I think it will probably pass resistance in the near future.

In the mean time I moved into F today at 9 even and sold a November 1st 9.5 call so I am all set for another hit and run to collect my dividend on Xday Monday.

I guess you were fortunate. It still hasn't broken through resistance.

[fung_derf]

Right. The stock did bounce back after the dividend, but you still recognize the dividend is taxable at a higher rate.
On the other hand, I stated resistance was at $15.95 and it only got to $15.83 then fell back, so that was my point.
I do note, when the stock dropped to $14.47 you didn't mention it.
I guess you were fortunate. It still hasn't broken through resistance.

[leftovers]

Well just sold today managed to get out with .15 plus the .50 dividend for a 3 week hold so I am happy. Think I am going to move over into F and catch the dividend on Monday! Cheers....

Why buy a dividend? I see resistance at $15.95

[fung_derf]

Why buy a dividend? I see resistance at $15.95

[leftovers]

The Board declared a quarterly dividend of $0.50 per common share for the third quarter 2019. The dividend is payable on October 31, 2019 to shareholders of record on October 3, 2019.

[leftovers]

Getting to be quarterly Dividend time. Should be announcing soon. On the Weekly chart 14 looks good and a safe entry point! I didn't buy however right now looks OK for a Dividend swipe.

[Enterprising Investor]

BTIG initiating at Buy with $18 PT; Recent Selloff is Overly Punitive Does Not Give NRZ Credit for Lower Rate Sensitivity & Recapture Initiatives

http://researchwiseny.btig.com/ResearchLibraryAnalec/DownloadResearch.aspx?E=bjbehk-b

[Enterprising Investor]

NRZ current dividend yield is 13.8 percent.

Floating two Fixed-to-Floating Rate Preferred Stock deals with dividend rates at 7.50% and 7.125%, respectively, is much better than issuing a like principal amount in common stock when its trading below book value ($16.17 at 6/30/19).

[Enterprising Investor]

Credit Suisse takes neutral stance on Chimera Investment (8/21/19)

Credit Suisse cuts Chimera Investment (CIM) to neutral from outperform, citing lack of catalysts to support further upside.

The market's current premium for CIM is justified due to its history of book value stability, continuing to earn more than its dividend, its accelerated pace of new securitization activity, and discipline in raising common equity.

Sees better potential for returns in outperform rated names including New Residential (NRZ), PennyMac Mortgage (PMT), Redwood Trust (RWT), Two Harbors (TWO), and Ellington Financial (EFC).

In the past six months, Chimera has risen 6.4% vs. financial sector median performance of -4.0%.

Credit Suisse's take on CIM agrees with Quant rating Neutral; SA Authors' average rating of Neutral (2 Bullish, 1 Neutral, 1 Bearish).

https://seekingalpha.com/news/3493624

[bar1080]

Many shareholders on SA don't understand how this fund works. Blackbox. I'll avoid. Note that I called it a black box more than a year ago, just as it started dropping.

https://seekingalpha.com/news/3489855-new-residential-preferred-offering-priced-250m-proceeds

also skim the comments here:
https://seekingalpha.com/news/3492853-new-residential-acquire-field-services-company

[leftovers]

I am confused didn't they just complete a stock offering to raise capital? So now they are going to buy stock back?

Something doesn't sound right!

Ahh I see it was preferred stock --- "On August 15, 2019, the Company filed a Certificate of Designations (the “Certificate of Designations”) with the Secretary of State of the State of Delaware to designate 10,000,000 shares of the Company’s authorized preferred stock as the 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, par value $0.01 per share, with a liquidation preference of $25.00 per share (“Series B Preferred Stock”), with the powers, designations, preferences and other rights as set forth therein. The Certificate of Designations became effective upon filing on August 15, 2019. "

[Enterprising Investor]

New Residential Investment Corp. Announces Authorization of Share Repurchase Program of Up to $200 Million (8/20/19)

NEW YORK--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE: NRZ, “New Residential”, the “Company”), a leading provider of capital and services to the mortgage and financial services industry, announced today that the Company's Board of Directors (the “Board”) authorized the repurchase of up to $200 million of the Company's common shares through December 31, 2020.

Under the program, the Company may purchase its shares from time to time in the open market or in privately negotiated transactions. The amount and timing of the purchases will depend on a number of factors including the price and availability of the Company's shares, trading volume, capital availability, Company performance and general economic and market conditions. The Company may also from time to time establish one or more plans under Rule 10b5-1 of the Securities Exchange Act of 1934 or by means of one or more tender offers to facilitate purchases of its shares under this authorization. The share repurchase program may be suspended or discontinued at any time.

“Our Board and management believe that our Company’s value and long-term strategy are not currently reflected in our share price,” said Michael Nierenberg, Chairman, Chief Executive Officer and President. “The program we announced today reflects our confidence in our business and demonstrates our commitment to driving shareholder value. We intend to opportunistically consider the use of this repurchase program when it compares favorably to other capital deployment alternatives.”

ABOUT NEW RESIDENTIAL

New Residential is a leading provider of capital and services to the mortgage and financial services industry. With approximately $37 billion in assets as of June 30, 2019, New Residential has built a diversified, hard-to-replicate portfolio with high-quality investment strategies that have generated returns across different interest rate environments. New Residential’s investment portfolio includes mortgage servicing related assets, non-agency securities (and associated call rights), residential loans and other related opportunistic investments. 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 almost $3 billion in dividends to shareholders. Following the acquisition of Shellpoint Partners LLC (“Shellpoint”) in 2018, New Residential also benefits from Shellpoint’s origination and third-party servicing platform, as well as a suite of ancillary businesses including title insurance, appraisal management, real estate owned management and other real estate services. 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/20190820005707/en/New-Residential-Investment-Corp.-Announces-Authorization-Share

[Enterprising Investor]

Investor Presentation (7/30/19)

http://ir.newresi.com/Cache/1001255066.PDF?O=PDF&T=&Y=&D=&FID=1001255066&iid=4347089

[ThSeeker]

New Residential Investment Corp (NRZ) CEO Michael Nierenberg on Q2 2019 Results - Earnings Call Transcript

https://seekingalpha.com/article/4279047-new-residential-investment-corp-nrz-ceo-michael-nierenberg-q2-2019-results-earnings-call?dr=1

[Enterprising Investor]

New Residential Announces Second Quarter 2019 Results (7/30/19)

NEW YORK--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE: NRZ; “New Residential” or the “Company”) today reported the following information for the second quarter ended June 30, 2019:
SECOND QUARTER FINANCIAL HIGHLIGHTS:

- GAAP Net Loss of $31.9 million, or ($0.08) per diluted share(1)

- Core Earnings of $219.8 million, or $0.53 per diluted share(1)(2)

- Common Dividend of $207.8 million, or $0.50 per share(1)

- Book Value per share of $16.17(1)

[Tables deleted]

“As rates moved lower throughout the second quarter, the balanced nature of our investment portfolio continued to demonstrate the value of our franchise. Through a diversified hedging and investment strategy, we continue to protect the value of our assets across various interest rate scenarios,” said Michael Nierenberg, Chairman, Chief Executive Officer and President. “Given recent language from the Federal Reserve suggesting the potential for future rate cuts, we remain focused on protecting book value and executing on key business initiatives. In particular, our emphasis on developing our origination and recapture business is expected to help contribute to our overall performance as we navigate this environment. Finally, at the end of the quarter, we were able to take advantage of favorable technicals in the preferred market to opportunistically diversify our balance sheet by executing our first preferred equity offering, which priced at one of the tightest ever coupons for an inaugural mortgage REIT preferred offering.”

Per share calculations of GAAP Net (Loss) Income and Core Earnings are based on 415,665,460 weighted average diluted shares during the quarter ended June 30, 2019 and 388,601,075 weighted average diluted shares during the quarter ended March 31, 2019. Per share calculations of Common Dividend are based on 415,520,780 basic shares outstanding as of June 30, 2019 and 415,429,677 basic shares outstanding as of March 31, 2019. Per share calculations for Book Value are based on 415,520,780 basic shares outstanding as of June 30, 2019.

Core Earnings is a non-GAAP measure. For a reconciliation of Core Earnings to GAAP Net (Loss) Income, as well as an explanation of this measure, please refer to Non-GAAP Measures and Reconciliation to GAAP Net (Loss) Income below.

Second Quarter 2019 Highlights:

Mortgage Servicing Rights (“MSRs”)

- Acquired MSRs totaling approximately $53 billion unpaid principal balance (“UPB”).

Non-Agency Securities and Call Rights

- New Residential controls call rights to approximately $106 billion of mortgage collateral, representing approximately 34% of the Non-Agency market.(3)(4) Approximately $42 billion of our call rights population is currently callable.(3)

- During the second quarter, we executed clean-up calls on 40 seasoned, Non-Agency residential mortgage-backed securities (“RMBS”) deals with an aggregate UPB of approximately $1.1 billion.

- Purchased $723 million face value of Non-Agency RMBS.

- Completed one securitization of loans through exercise of call rights with approximately $596 million of UPB.

Residential Loans

- Acquired $1.6 billion UPB of RPLs.

- Completed one non-qualifying mortgage (Non-QM) loan securitization for UPB of approximately $305 million.

Servicer Advances

- Servicer advance balances were essentially flat in Q2’19, at $3.3 billion.

Additional Highlights

- Raised $155 million in gross proceeds of preferred equity that settled subsequent to June 30, 2019.

- Announced strategic investment in Covius Holdings, a leading provider of technology-enabled services to the financial services industry.(5)
Announced the execution of an asset purchase agreement with Ditech Holding Corp. and Ditech Financial LLC (collectively “Ditech”) relating to substantially all of the forward assets of Ditech.(6)

3. The UPB of the loans relating to our call rights may be materially lower than the estimates in this Press Release, and there can be no assurance that we will be able to execute on this pipeline of callable deals in the near term, or at all, or that callable deals will be economically favorable. The economic returns from this strategy could be adversely affected by a rise in interest rates and are contingent on the level of delinquencies and outstanding advances in each transaction, fair market value of the related collateral and other economic factors and market conditions. We may become subject to claims and legal proceedings, including purported class-actions, in the ordinary course of our business, challenging our right to exercise these call rights. Call rights are usually exercisable when current loan balances in a related portfolio are equal to, or lower than, 10% of their original balance.

4. All data as of June 30, 2019, unless otherwise stated.

5. Announced May 2019 and closed July 2019.

6. The potential transaction with Ditech is subject to several closing conditions including, among other things, (a) the entry of a confirmation order by the United States Bankruptcy Court for the Southern District of New York that is acceptable to New Residential, (b) receipt of approvals from certain governmental and quasi-governmental agencies, (c) resolution of various objections currently pending before the United States Bankruptcy Court for the Southern District of New York and (d) certain other customary closing conditions. The sale of certain assets contemplated as part of this potential transaction are also subject to receipt of third party consents. There can be no assurance that this potential transaction will be consummated in the near term, on the timeline presented in other statements made by New Residential, or at all.

ADDITIONAL INFORMATION

For additional information that management believes to be useful for investors, please refer to the latest presentation posted on the Investor Relations section of the Company’s website, www.newresi.com. For consolidated investment portfolio information, please refer to the Company’s most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K, which are available on the Company’s website, www.newresi.com.

EARNINGS CONFERENCE CALL

New Residential’s management will host a conference call on Tuesday, July 30, 2019 at 8:00 A.M. Eastern Time. A copy of the earnings release 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 1-866-393-1506 (from within the U.S.) or 1-281-456-4044 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “New Residential Second Quarter 2019 Earnings Call.”

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, August 13, 2019 by dialing 1-855-859-2056 (from within the U.S.) or 1-404-537-3406 (from outside of the U.S.); please reference access code “9966908.”

ABOUT NEW RESIDENTIAL

New Residential is a leading provider of capital and services to the mortgage and financial services industry. With over $36 billion in assets as of June 30, 2019, New Residential has built a diversified, hard-to-replicate portfolio with high-quality investment strategies that have generated returns across different interest rate environments. New Residential’s investment portfolio includes mortgage servicing related assets, non-agency securities (and associated call rights), residential loans and other related opportunistic investments. 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 almost $3 billion in dividends to shareholders. Following the acquisition of Shellpoint in 2018, New Residential also benefits from Shellpoint’s origination and third-party servicing platform, as well as a suite of ancillary businesses including title insurance, appraisal management, real estate owned management and other real estate services. 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/20190730005386/en/New-Residential-Announces-Quarter-2019-Results

[fung_derf]

Yeah, I'd have to think that at ex date, this stock drops back again. Although it seems to be more influenced by that resistance currently at $16.60.
Either way, this stock turned negative back in November last year and has yet to recover.

[leftovers]

I am starting to wonder to? There has been NO run up into the dividend with Xdate just 2days from now. Can't sell any covered call worth chit right now? Starting to think I will be holding this awhile? Glad I only purchased 1000 shares this dividend trip!

[Enterprising Investor]

New Residential Launches Public Offering of Preferred Stock (6/25/19)

NEW YORK--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE: NRZ; “New Residential” or the “Company”) announces that it has launched an opportunistic underwritten public offering of Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Preferred Stock”), subject to market conditions. The terms of the Preferred Stock are to be determined by negotiations between the Company and the underwriters. The Company intends to apply to list the Preferred Stock on the New York Stock Exchange under the symbol “NRZ PR A.” The Company expects to grant to the underwriters a 30-day option to purchase up to an additional 15% of the shares of the Preferred Stock being offered to cover over-allotments, if any.

The Company intends to use the net proceeds from this offering for investments and general corporate purposes.

BofA Securities, Inc., Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, RBC Capital Markets, LLC, UBS Securities LLC, Citigroup Global Markets Inc. and Keefe, Bruyette & Woods, Inc. are acting as joint book-running managers for the offering.

The offering will be made pursuant to the Company’s effective shelf registration statement filed with the Securities and Exchange Commission (the “SEC”). The offering will be made only by means of a prospectus and a related prospectus supplement. Prospective investors should read the prospectus supplement and the prospectus in that registration statement and other documents the Company has filed or will file with the SEC for more complete information about the Company and the offering. You may obtain these documents for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, copies of the prospectus supplement and the prospectus may be obtained from BofA Securities, Inc., Attention: Prospectus Department, 200 North College Street, NC1-004-03-43, Charlotte, North Carolina 28255, email: [e-mail]; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 1585 Broadway, 29th Floor, New York, New York 10036, email: [e-mail]; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, email: [e-mail]; RBC Capital Markets, LLC, Attention: Equity Syndicate, 200 Vesey Street, 8th Floor, New York, New York 10281, email: [e-mail]; UBS Securities LLC, Attention: Prospectus Department, 1285 Avenue of the Americas, New York, New York 10019; Citigroup Global Markets Inc., c/o Broadridge Financial Services, 1155 Long Island Avenue, Edgewood, New York 11717, email: [e-mail]; or Keefe, Bruyette & Woods, Inc., Attention: Capital Markets, 787 Seventh Avenue, 4th Floor, New York, New York 10019, email: [e-mail].

This press release does not constitute an offer to sell or the solicitation of an offer to buy shares of the Preferred 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 focuses on opportunistically investing in, and actively managing, investments principally related to residential real estate. New Residential primarily targets investments in mortgage servicing related assets and other related opportunistic investments. Following the acquisition of Shellpoint Partners LLC (“Shellpoint”) in 2018, New Residential now also benefits from Shellpoint’s origination and third-party servicing platform, as well as a suite of ancillary businesses including title insurance, appraisal management, real estate owned management and other real estate services. New Residential is organized and conducts its operations to qualify as a real estate investment trust for federal income tax purposes. New Residential is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm.

https://www.businesswire.com/news/home/20190625005650/en/

[fung_derf]

It might be. Resistance is at $16.60, but here's my concern...
lately I'm seeing more and more retail strips and massive warehouses built to spec. Many of these may be getting their money from private REITs, but I'll bet there are many being built by the public companies.
So, your average shareholder is paying to build many of these places that sit empty.
The promises of income generated makes me nervous.

[Enterprising Investor]

NRZ will be back to $16.10 any day now.

[leftovers]

Just got filled back in NRZ!

[leftovers]

Nice time to load!
New Residential Investment (NYSE:NRZ) declares $0.50/share quarterly dividend, in line with previous.
Forward yield 12.67%
Payable July 26; for shareholders of record July 1; ex-div June 28.

[Enterprising Investor]

New Residential Declares a Second Quarter 2019 Dividend of $0.50 per Common Share (6/18/19)

NEW YORK--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE:NRZ; “New Residential” or the “Company”) announced today that its Board of Directors declared a quarterly dividend of $0.50 per common share for the second quarter of 2019. The dividend is payable on July 26, 2019 to shareholders of record on July 1, 2019.

ABOUT NEW RESIDENTIAL

New Residential focuses on opportunistically investing in, and actively managing, investments principally related to residential real estate. New Residential primarily targets investments in mortgage servicing related assets and other related opportunistic investments. Following the acquisition of Shellpoint Partners LLC (“Shellpoint”) in 2018, New Residential now also benefits from Shellpoint’s origination and third-party servicing platform, as well as a suite of ancillary businesses including title insurance, appraisal management, real estate owned management and other real estate services. New Residential is organized and conducts its operations to qualify as a real estate investment trust for federal income tax purposes. New Residential is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm.

https://www.businesswire.com/news/home/20190618005930/en/New-Residential-Declares-Quarter-2019-Dividend-0.50

[Enterprising Investor]

New Residential Investment Corp. Signs Asset Purchase Agreement with Ditech Holding Corporation (6/18/19)

- New Residential enters into “stalking horse” Asset Purchase Agreement with Ditech to purchase certain assets in Ditech’s Chapter 11 Bankruptcy

- Acquisition of these assets, in addition to those already operated through NewRez and Shellpoint Mortgage Servicing, would further New Residential’s position as an industry leading originator and servicer

NEW YORK--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE: NRZ, “New Residential”, the “Company”) announced today that it has entered into a “stalking horse” Asset Purchase Agreement (the “APA”) with Ditech Holding Corporation (“Ditech”) and Ditech Financial LLC (“Ditech Financial”) to purchase substantially all of the forward assets of Ditech Financial. The final purchase price will be determined at the closing of the transaction based on the tangible book value of the related assets, subject to certain agreed upon adjustments. New Residential expects to finance the acquisition of these assets with existing financing facilities and cash on hand.

Under the terms of the APA, subject to certain conditions, New Residential has agreed to purchase, among other assets, Ditech Financial’s forward Fannie Mae, Ginnie Mae and non-agency mortgage servicing rights (“MSRs”), with an aggregate unpaid principal balance of approximately $63 billion as of March 31, 2019, the servicer advance receivables relating to such MSRs and other net assets core to the forward origination and servicing businesses. Additionally, New Residential has agreed to assume certain Ditech office spaces and plans to make employment offers to a number of Ditech employees. Under the APA, New Residential will not purchase any of the stock or assets related to Ditech Financial’s reverse mortgage business.

“We are confident that the acquisition of these select assets, operations and employees from Ditech will be complementary to our existing portfolio and business as well as beneficial to our shareholders and the long-term strategy of our Company,” said Michael Nierenberg, Chairman, Chief Executive Officer and President of New Residential. “The acquisition of these origination and servicing operations from Ditech, in addition to those already operated through NewRez and Shellpoint Mortgage Servicing, will further our position as an industry leading originator and servicer.”

“This stalking horse agreement represents a positive step forward in Ditech’s court-supervised process,” said Thomas F. Marano, Chairman of the Board and Chief Executive Officer of Ditech. “New Residential has a high-quality platform as well as the necessary expertise, operations and scale to efficiently manage these assets for the benefit of both New Residential and Ditech stakeholders.”

If New Residential’s bid is successful, the transaction is expected to close in the second half of 2019, subject to certain closing conditions including, among other things, (a) New Residential being identified in Ditech’s bankruptcy proceeding as the winning bidder of the assets referenced in the APA, (b) the entry of a confirmation order by the United States Bankruptcy Court for the Southern District of New York that is acceptable to New Residential, (c) receipt of approvals from certain governmental and quasi-governmental agencies, and (d) other customary closing conditions. The sale of certain assets are also subject to receipt of third party consents. In the event the APA is terminated for certain reasons, including if Ditech accepts a higher or better offer from a competing bidder at the auction, subject to the approval of the Bankruptcy Court, Ditech may be required to reimburse the Company for its reasonable expenses up to $6 million and pay the Company a termination fee of up to $30 million.

Sidley Austin LLP is acting as legal counsel and Moelis & Company LLC is acting as financial advisor to New Residential in connection with the agreement.

ABOUT NEW RESIDENTIAL

New Residential focuses on opportunistically investing in, and actively managing, investments principally related to residential real estate. New Residential primarily targets investments in mortgage servicing related assets and other related opportunistic investments. Following the acquisition of Shellpoint Partners LLC (“Shellpoint”) in 2018, New Residential now also benefits from Shellpoint’s origination and third-party servicing platform, as well as a suite of ancillary businesses including title insurance, appraisal management, real estate owned management and other real estate services. 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.

ABOUT DITECH

Ditech is an independent servicer and originator of mortgage loans and servicer of reverse mortgage loans. Based in Fort Washington, Pennsylvania, Ditech services a diverse loan portfolio. For more information about Ditech, please visit Ditech website at www.ditechholding.com. The information on Ditech website is not a part of this release.

https://www.businesswire.com/news/home/20190618005269/en/New-Residential-Investment-Corp.-Signs-Asset-Purchase

[fung_derf]

Different philosophies I guess. I prefer to just pick the meaty part of a move and be right more often.
Personally, I wouldn't get back into NRZ until it gets above $16.10.
JMO, of course.

[Enterprising Investor]

Fear.

“Fearful when others are greedy and greedy when others are fearful.” - Warren Buffett

I prefer to be greedy when others are fearful.

Examples would be buying banks and private mortgage insurance companies during the Great Recession.

I’m not perfect.

[fung_derf]

So, what killed the share price on 5/28?

[Enterprising Investor]

As mortgage rates plunge, millions more homeowners can benefit from refinancing (6/03/19)

DianaOlick

There are now about 5.9 million borrowers who could see their rates drop by at least 75 basis points by refinancing their mortgages. That is an increase of 2 million in just the past month, according to Black Knight, a mortgage software and analytics company.

That is the largest population of eligible candidates in nearly three years and represents an aggregate of $1.6 billion in potential monthly savings. Per borrower, the savings is about $271 per month.

The average rate on the popular 30-year fixed has fallen from a recent high of 4.23% on May 21 to 3.94% now, according to Mortgage News Daily.

Mortgage rates are falling unexpectedly and sharply, and that means millions more homeowners can now benefit from refinancing their loans.

The average rate on the popular 30-year fixed has fallen from a recent high of 4.23% on May 21 to 3.94% now, according to Mortgage News Daily.

Fear over the ongoing trade war with China, and now potentially Mexico, has investors rushing to the relative safety of the bond market, pushing yields lower. Mortgage rates loosely follow the yield of the 10-year Treasury.

There are now about 5.9 million borrowers who could see their rates drop by at least 75 basis points by refinancing their mortgages. That is an increase of 2 million in just the past month, according to Black Knight, a mortgage software and analytics company.

That is the largest population of eligible candidates in nearly three years and represents an aggregate of $1.6 billion in potential monthly savings. Per borrower, the savings is about $271 per month.

If the rate were to drop just another quarter point, close to 7 million borrowers could benefit from a refinance, with a collective savings of just over $1.8 billion.

Falling rates are also benefiting buyers, especially as home prices are now cooling. Home prices in March were up 3.8% annually, the first time growth has fallen below its 25-year average of 3.9% since 2012, according to Black Knight.

Affordability is now the best it's been in more than a year, with the monthly payment on the average-priced house down 6% in the past six months (that's with a 20% down payment).

"When we factor income into the equation, we see that it takes 22% of the median income to purchase the average-priced home. That's the lowest payment-to-income ratio in more than a year as well, and far below the long-term average of 25.1%," wrote Ben Graboske, president of Black Knight's data and analytics division.

Homebuyers have been up against a tight supply of lower-priced homes and an overheated market in general. While the price gains have come down significantly, today's younger buyers are still saddled with high levels of debt and are often paying very high rents, making it increasingly difficult to afford a home.


https://www.cnbc.com/amp/2019/06/03/as-mortgage-rates-plunge-millions-more-homeowners-can-benefit-from-refinancing.html

[Enterprising Investor]

Mortgage lenders began cutting staff last summer.

Industry continues to have issues with its crystal ball. Now they are scrambling to hire loan processors and underwriters.

I saw this coming last October once rates stopped rising.

Mortgage servicing rights valuations will decline. However, value is created as more borrowers refinance - gain on sale and extending duration of new MSR.

[leftovers]

Looks good nice after market rise. It was over reaction to the Tariff tweet? I think you'll be happy with the purchase!

Added this morning at $14.86.

[fung_derf]

To be fair, we don't know if it's Trump's decision or someone advising him. It only SEEMS like something he'd do.
But, you don't try to fight a war on two fronts. See Hitler for results.

[leftovers]

The problem is he could cause some real serious long term damage. IMHO

It seems none of his advisers have any effect on him He thinks he is the Chosen one!

This was a major economic faux paux by Trump.

Like I said he is having a Political manipulation effect on the Market whether intentional or not?

[Enterprising Investor]

Mortgage rates extend decline, sinking to 16-month lows (5/30/19)

By Kathy Orton

fter five weeks of declines, mortgage rates are at their lowest levels in 16 months.

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average tumbled to 3.99 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount and are in addition to the interest rate.) It was 4.06 percent a week ago and 4.56 percent a year ago. The 30-year fixed rate moved below 4 percent for the first time since January 2018.

The 15-year fixed-rate average fell to 3.46 percent with an average 0.5 point. It was 3.51 percent a week ago and 4.06 percent a year ago. The five-year adjustable rate average dropped to 3.60 percent with an average 0.4 point. It was 3.68 percent a week ago and 3.80 percent a year ago.

Several factors are exerting downward pressure on mortgage rates. Investors are anxious about the continuing irresolution of the U.S.-China trade dispute. They are worried about Brexit and European economic growth in general, which they fear could tamp down domestic growth. They are also concerned a recession may be near.

All of this is causing an increased demand for U.S. Treasurys, driving bond prices up and yields down. The yield on the 10-year Treasury fell to 2.25 percent on Wednesday, its lowest level since September 2017.

“Yields plummeted to 20-month lows in recent days as investors — who continue to weigh risks surrounding the U.S.-China trade negotiations, Brexit and slowing European economic growth — accelerated their flock to the safe haven of Treasurys,” said Matthew Speakman, a Zillow economic analyst. “The inversion of the yield curve exacerbated this behavior. Typically, this would result in sharp declines to mortgage rates but thus far their response has been fairly muted, and rates did not fall by as much as bond yield declines would predict.”

their response has been fairly muted, and rates did not fall by as much as bond yield declines would predict.”

An increasing number of experts are convinced the Federal Reserve will cut interest rates later this year. But for now, many expect mortgage rates’ slump to continue. Bankrate.com, which puts out a weekly mortgage rate trend index, found that more than half of the experts it surveyed say rates will go down again in the coming week.

“While we may see a day or two correction to a market which is very much overbought, the general trend to higher Treasury prices and lower yields should continue,” said Dick Lepre, senior loan officer at RPM Mortgage in San Francisco. “We are headed toward a 2 percent 10-year yield. I do not believe that this is simply an indication of increased recession probability. This is more about lack of confidence in the economies of most of the rest of the world. The consequence is flight-to-quality buying of U.S. Treasury and MBS debt as evidenced not only by falling yields but the very strong U.S. dollar.”

Meanwhile, despite falling rates, mortgage applications pulled back. According to the latest data from the Mortgage Bankers Association, the market composite index — a measure of total loan application volume — decreased 3.3 percent from a week earlier. The refinance index fell 6 percent from the previous week, while the purchase index dipped 1 percent.

The refinance share of mortgage activity accounted for 39.7 percent of all applications.

“Purchase mortgage applications continued their impressive streak — now at 15 weeks — of year-over-year increases,” said Bob Broeksmit, MBA president and CEO. “Despite the ongoing decline in mortgage rates, however, purchase and refinance activity slipped from the previous week. Overall demand remains healthy, but prospective buyers — especially first-time buyers — still face low inventory, higher home prices and stiff competition.”

https://www.washingtonpost.com/business/2019/05/30/mortgage-rates-extend-decline-sinking-month-lows/?utm_term=.87239df458ae

[fung_derf]

I would say this is more than just about a tweet. This was a major economic faux paux by Trump.

[leftovers]

Looks like your timing is just about Right!

Added this morning at $14.86.

[fung_derf]

Technically speaking, I see no reason to buy NRZ yet. Maybe $14.45. But even that is a vague indicator.
Considering you've got some time until the next Ex date, I see no reason to jump now.

[Enterprising Investor]

Time to push the average cost down again.

Added this morning at $14.86.

On the flip side, my timing, like most, is rarely perfect.

[leftovers]

Been buying it! My last 500 NRZ shares went right into it.


With Donald Duck running the show I think you're going see all kinds of buys!


Going take a big hit today with this latest Duck tweet... Amazing our markets are now controlled by tweets from the president! Wouldn't be surprised if the SEC goes after him LOL