New Residential Investment Corporation is a renowned Real Estate Investment Trust (REIT). Its main business is to invest in and actively oversee real estate investment pertaining to residential property. The company’s operations revolve around investments that target additional Mortgage Servicing Rights (MSRs), residential mortgage lending and Residential Mortgaged-Backed Securities (RMBSs), investments in consumer lending markets, business development in servicer advances as well as opportunistically investments.
New Residential Investment Corp focuses on bolstering servicing -related assets which encompass excess MSRs, and servicer advances. Its purchase of servicer advance comes with privileges such as the right to have a say in the basic fee portion of MSR in question. Additionally, the company purchases bonds from servicer advance which have collateral provided by mortgage servicers. The firm also invests in both agency and non-agency RMBS which include mortgage pass-through documents, inters-driven RMBS agency, and other to-be-notified forward contract dockets.
With non-agency RMBS, the company may decide to purchase under a secured interest-rate mortgage account, flexible-rate mortgages as well as hybrid flexible-rate mortgages.
New Residential Investment Corp strives to create proven investment strategies that will help the company realize spiked returns index so as to expand the dividends for their shareholders. Therefore, NRIC looks for investment channels that generate steady returns while using conservative approach to accelerate decent returns on different interest-rate situations.
In the past decades, the United States residential mortgage lending space has become more complex. That opens up opportunities as the residential housing market is expected to rise to a $21 trillion industry. At the end of the U.S financial depression, the residential housing markets have undergone a structural haul, shifting the factors that influence mortgage preparation, ownership and servicing. That opens investment opportunity and New Residential Investment Corp has the necessary capital, experience, and the required partnerships to create a solid niche in the mortgage industry.
New Residential was initially established as a subsidiary of the Newcastle Investment Corp. However, the company broke away to become its own, independently owned entity and started trading publicly in May 2013. NRI is closely linked to Fortress Investment Group, a Hedge Fund Company, and receives management and advisory assistance from one of the globally recognized alternative asset management firm.
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