Real estate investment trust New Residential (NRZ), managed by an affiliate of Fortress Investment Group (FIG), released its annual report for 2013.

And in regard to its investments in excess mortgage servicing rights, the bets are paying off.

"Through the end of December, our portfolio generated $187 million of total life to date cash flows, which represented 27% of our initial investment returned over an average of 10 months, and the current carrying value of our portfolio was $677 million," said CEO Michael Nierenberg in a letter to investors ahead of the filing.

"We remain confident that 2014 will be a favorable year for MSR transactions. Large banks will likely continue to sell high-touch servicing, while higher interest rates and a better economic backdrop could further improve MSR values," the letter in the annual filing states. "In addition, we believe prepayment speeds of the underlying loans will likely continue to trend down as interest rates rise. "

New Residential will continue to look for MSR opportunities in the short term and invest further in advance receivables.

"We believe these assets will provide a longer-duration stream of earnings to our portfolio," Nierenberg said.

MSR investor stocks are taking a hit today as Ocwen's first quarter report missed expectations as the nonbank reported and indefinite hold on a large MSR transaction.

Shares in New Residential and Fortress are not being as deeply impacted, instead gaining in late day trading.