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.