Rithm Capital Corp (RITM)

[Enterprising Investor]

New Residential Announces Third Quarter 2017 Results (10/27/17)

NEW YORK--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE:NRZ; “New Residential” or the “Company”) today reported the following information for the quarter ended September 30, 2017:

THIRD QUARTER FINANCIAL HIGHLIGHTS:

• GAAP Net Income of $226 million, or $0.73 per diluted share

• Core Earnings of $199 million, or $0.64 per diluted share*

• Common dividend of $154 million, or $0.50 per share

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Third Quarter 2017 & Subsequent Highlights:
• Mortgage Servicing Rights (“MSRs”) - ? In July 2017, New Residential continued to grow its full MSR portfolio by agreeing to pay approximately $400 million(1) in total restructuring fee payments for the transfer of $110 billion in unpaid principal balance (“UPB”) of Non-Agency MSRs(2) from Ocwen Financial Corporation (together with its subsidiaries, “Ocwen”). Concurrently with the MSR transfer agreement, New Residential Mortgage LLC, a wholly-owned subsidiary of NRZ, entered into a 5-year subservicing agreement with Ocwen, pursuant to which Ocwen will subservice the mortgage loans underlying the transferred MSRs.

• Non-Agency Securities & Call Rights - ? During the third quarter, New Residential continued to accelerate the execution around its deal collapse strategy by executing clean-up calls on 43 seasoned, Non-Agency RMBS deals with an aggregate UPB of $948 million. In addition, during and subsequent to the third quarter, New Residential completed two Non-Agency loan securitizations, totaling $1.1 billion.

- In the third quarter, New Residential continued to strategically invest in Non-Agency securities that are expected to be accretive to the Company’s call rights strategy. New Residential purchased $435 million face value of Non-Agency RMBS, bringing net equity to approximately $1.37 billion as of September 30, 2017.

• Servicer Advances - ? New Residential continued to focus on lowering advance balances during the quarter. Advances declined meaningfully to $4.3 billion in the third quarter, down approximately 10% quarter-over-quarter and down approximately 32% year-over-year.

1) Payment amount based on transfer of all loans on June 30, 2017.

2) New Residential already owns the fee economics and servicer advances on the portfolio and pays Ocwen a monthly servicing fee as a result of the HLSS transaction which closed in April 2015. Stated UPB is as of June 30, 2017. UPB and total restructuring fee payments will likely be lower at the time of settlement due to amortization of the UPB of the MSR portfolio. Ocwen MSR transfer remains subject to NRZ’s satisfaction of certain contractual requirements and certain customary closing conditions, including but not limited to certain third party consents. There can be no assurance of whether or when New Residential will be able to complete the agreed upon MSR transfer. See “Cautionary Note Regarding Forward-Looking Statements” at the end of this press release for more information on forward-looking statements.

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 Friday, October 27, 2017 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 Third Quarter 2017 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 Friday, November 10, 2017 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 “5282459.”

ABOUT NEW RESIDENTIAL

New Residential focuses on opportunistically investing in, and actively managing, investments related to residential real estate. The Company primarily targets investments in mortgage servicing related assets and other related opportunistic investments. New Residential is organized and conducts its operations to qualify as a real estate investment trust (“REIT”) for federal income tax purposes. The Company is managed by an affiliate of Fortress Investment Group LLC (NYSE: FIG), a global investment management firm.

http://www.businesswire.com/news/home/20171027005321/en/New-Residential-Announces-Quarter-2017-Results