New Residential Investment Corp. (NRZ) announced that it has co-invested with Nationstar Mortgage in its recent acquisition of mortgage servicing rights.
The portfolio has an unpaid principal balance of approximately $23 billion and is composed of agency residential mortgage loans.
New Residential invested $38 million to acquire the right to receive one-third of the monthly cash flow generated by the MSRs.
Nationstar is the servicer of the loans and will perform all of the day-to-day servicing functions.
A fund managed by Fortress Investment Group has also acquired a one-third interest in the MSR cash flows.
The transaction is expected to bring New Residential's total initial investment in MSR cash flows to $645 million and the unpaid principal balance of the underlying loans to more than $310 billion.