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New Residential Investment Corp. Announces Third Quarter 2020 Results

·25-min read

New Residential Investment Corp. (NYSE: NRZ; "New Residential" or the "Company") today reported the following information for the third quarter ended September 30, 2020:

THIRD QUARTER 2020 FINANCIAL HIGHLIGHTS:

  • GAAP Net Income of $77.9 million, or $0.19 per diluted common share(1)

  • Core Earnings of $131.6 million, or $0.31 per diluted common share(1)(2)

  • Common Dividend of $62.4 million, or $0.15 per common share(1)

  • Book Value per common share of $10.86(1)

  • $841.0 million of cash as of September 30, 2020

Q3 2020

Q2 2020

Summary of Operating Results:

GAAP Net Income (Loss) per

Diluted Common Share(1)

$0.19

($0.02)

GAAP Net Income (Loss)

$77.9 million

($8.9 million)

Non-GAAP Results:

Core Earnings per Diluted Common Share(1)

$0.31

$0.34

Core Earnings(2)

$131.6 million

$140.2 million

NRZ Common Dividend:

Common Dividend per Share(1)

$0.15

$0.10

Common Dividend

$62.4 million

$41.6 million

"New Residential had a strong third quarter, bolstered by solid earnings in our Origination and Servicing segments," said Michael Nierenberg, Chairman, Chief Executive Officer and President of New Residential. "Origination and Servicing delivered over $340 million in pre-tax earnings during the third quarter as these businesses continued to scale and capture additional market share."

Mr. Nierenberg continued, "With rates at current lows, we believe our investment portfolio is well positioned; in particular, our MSR portfolio stands to benefit as rates rise and multiples improve. We intend to maintain high levels of cash to deploy opportunistically. Heading into the end of the year, we are confident in our ability to grow book value and generate earnings for our shareholders."

THIRD QUARTER 2020 COMPANY HIGHLIGHTS:

  • Origination

    • Segment pre-tax income of $312.3 million (+72% QoQ)

    • Origination production of $18.1 billion in unpaid principal balance ("UPB") (+118% QoQ)

      • Direct to Consumer production of $3.4 billion UPB (+12% QoQ)

  • Servicing

    • Segment pre-tax net income of $30.3 million (+24% QoQ)

    • The servicing portfolio grew to $287.2 billion in UPB (+3% QoQ)

  • Mortgage Servicing Rights ("MSRs") and Servicer Advances

    • MSR portfolio totaled approximately $571 billion UPB as of September 30, 2020 compared to $610 billion UPB as of June 30, 2020(3)

    • Issued two MSR debt securitizations for $426 million

    • Closed a new $500 million Ginnie Mae MSR and advance financing facility(4)

    • Issued two servicer advance securitizations for $1.2 billion

    • Servicer advance balances declined slightly to $3.4 billion from $3.5 billion as of June 30, 2020

  • Residential Securities

    • Purchased $5.1 billion (net face value) of agency securities

    • Sold $616 million (face value) of non-agency securities

  • Residential Loans

    • Sold $279 million (face value) of residential loans

    • Completed three securitizations with total collateral of $1.3 billion UPB (two non-performing loans and one reperforming loan)

  • Financing and Leverage

    • Fully refinanced 11.00% senior secured term loan with 6.25% senior unsecured corporate debt, resulting in approximately $32 million of annual savings(5)

    • Refinanced SpringCastle securitization, representing $663 million of collateral

    • Annualized savings of approximately $50 million from all Q3’20 refinancing activity(5)

    • Overall leverage of 3.5x compared to 2.1x as of June 30, 2020(6)

  • Additional Updates Post Q3’20(7)

    • Issued one servicer advance securitization for $500 million

    • Sold $194 million (face value) of residential loans

(1)

Per common share calculations for both GAAP Net Income (Loss) and Core Earnings are based on 420,968,626 weighted average diluted shares during the quarter ended September 30, 2020; and 415,661,782 weighted average diluted shares during the quarter ended June 30, 2020. Per share calculations of Common Dividend are based on 415,744,518 basic shares outstanding as of September 30, 2020 and June 30, 2020. Per common share calculations for Book Value are based on 415,744,518 basic common shares outstanding as of September 30, 2020.

(2)

Core Earnings is a non-GAAP financial measure. For a reconciliation of Core Earnings to GAAP Net Income, as well as an explanation of this measure, please refer to Non-GAAP Measures and Reconciliation to GAAP Net Income below.

(3)

Includes excess and full MSRs.

(4)

Closed August 31, 2020. Upon approval from Ginnie Mae and the related lender, may be upsized to $750 million.

(5)

Based on management’s current views and estimates, and actual results may vary.

(6)

Represents recourse leverage. Excludes non-recourse leverage, including outstanding consumer debt, servicer advance debt, $37.4 million and $59.5 million of full MSR debt for September 30, 2020 and December 31, 2019 respectively, SAFT 2013-1 and MDST Trusts mortgage backed securities issued, and Shellpoint non-agency RMBS.

(7)

Represents activity from October 1, 2020 through October 23, 2020. Based on management’s current views and estimates, and actual results may vary.

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 Monday, October 26, 2020 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 1-866-777-2509 (from within the U.S.) or 1-412-317-5413 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference "New Residential Third Quarter 2020 Earnings Call." In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10148724/da91abba9c.

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 Monday, November 9, 2020 by dialing 1-877-344-7529 (from within the U.S.) or 1-412-317-0088 (from outside of the U.S.); please reference access code "10148724."

Consolidated Statements of Income

($ in thousands, except share and per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

2020

2019

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Revenues

Interest income

$

233,848

$

448,127

$

868,419

$

1,303,041

Servicing revenue, net of change in fair value of $(395,064), $(228,405), $(1,485,472), and $(619,914), respectively

(43,929

)

53,050

(459,313

)

133,366

Gain on originated mortgage loans, held-for-sale, net

495,098

126,747

984,818

294,935

685,017

627,924

1,393,924

1,731,342

Expenses

Interest expense

130,528

245,902

463,786

686,738

General and administrative expenses

316,560

193,580

859,601

525,289

Management fee to affiliate

22,482

20,678

66,682

58,261

Incentive compensation to affiliate

-

36,307

-

49,265

469,570

496,467

1,390,069

1,319,553

Other Income (Loss)

Change in fair value of investments

89,092

2,212

(374,408

)

(55,534

)

Gain (loss) on settlement of investments, net

(94,457

)

133,670

(968,995

)

96,385

Earnings from investments in consumer loans, equity method investees

-

(2,547

)

-

(890

)

Other income (loss), net

5,385

(30,695

)

(34,635

)

(27,234

)

20

102,640

(1,378,038

)

12,727

Impairment

Provision (reversal) for credit losses on securities

(3,849

)

5,567

15,166

21,942

Valuation and credit loss provision (reversal) on loans and real estate owned ("REO")

14,584

(10,690

)

118,504

8,042

10,735

(5,123

)

133,670

29,984

Income (Loss) Before Income Taxes

204,732

239,220

(1,507,853

)

394,532

Income tax expense (benefit)

100,812

(5,440

)

(48,647

)

18,980

Net Income (Loss)

$

103,920

$

244,660

$

(1,459,206

)

$

375,552

Noncontrolling Interests in Income of Consolidated Subsidiaries

$

11,640

$

14,738

$

34,118

$

31,979

Dividends on Preferred Stock

$

14,359

$

5,338

$

39,938

$

5,338

Net Income (Loss) Attributable to Common Stockholders

$

77,921

$

224,584

$

(1,533,262

)

$

338,235

Net Income (Loss) Per Share of Common Stock

Basic

$

0.19

$

0.54

$

(3.69

)

$

0.83

Diluted

$

0.19

$

0.54

$

(3.69

)

$

0.83

Weighted Average Number of Shares of Common Stock Outstanding

Basic

415,744,518

415,520,780

415,665,441

406,521,273

Diluted

420,968,626

415,588,238

415,665,441

406,671,972

Dividends Declared per Share of Common Stock

$

0.15

$

0.50

$

0.30

$

1.50

Consolidated Balance Sheets

($ in thousands)

September 30, 2020

December 31, 2019

Assets

(unaudited)

Excess mortgage servicing rights assets, at fair value

$

435,982

$

505,343

Mortgage servicing rights, at fair value

3,651,805

3,967,960

Mortgage servicing rights financing receivables, at fair value

1,129,819

1,718,273

Servicer advance investments, at fair value

535,760

581,777

Real estate and other securities

10,830,067

19,477,728

Residential loans and variable interest entity consumer loans held-for-investment, at fair value

1,440,910

1,753,251

Residential mortgage loans, held-for-sale ($4,358,473 and $4,613,612 at fair value at September 30, 2020 and December 31, 2019, respectively)

4,936,826

6,042,664

Residential mortgage loans subject to repurchase

1,458,325

172,336

Cash and cash equivalents

841,022

528,737

Restricted cash

180,554

162,197

Servicer advances receivable

2,857,040

3,301,374

Trades receivable

946,321

5,256,014

Other assets

1,161,933

1,395,800

$

30,406,364

$

44,863,454

Liabilities and Equity

Liabilities

Secured financing agreements

$

14,666,868

$

27,916,225

Secured notes and bonds payable (includes $1,756,632 and $659,738 at fair value at September 30, 2020 and December 31, 2019, respectively)

7,733,648

7,720,148

Residential mortgage loan repurchase liability

1,458,325

172,336

Unsecured senior notes, net of issuance costs

541,758

-

Trades payable

210

902,081

Due to affiliates

9,545

103,882

Dividends payable

69,541

211,732

Accrued expenses and other liabilities

497,838

600,790

24,977,733

37,627,194

Commitments and Contingencies

Equity

Preferred Stock, par value of $0.01 per share, 100,000,000 shares authorized:

7.50% Series A Preferred Stock, $0.01 par value, 11,500,000 shares authorized, 6,210,000 and 6,210,000 issued and outstanding at September 30, 2020 and December 31, 2019, respectively

150,026

150,026

7.125% Series B Preferred Stock, $0.01 par value, 11,500,000 shares authorized, 11,300,000 and 11,300,000 issued and outstanding at September 30, 2020 and December 31, 2019, respectively

273,418

273,418

6.375% Series C Preferred Stock, $0.01 par value, 16,100,000 shares authorized, 16,100,000 and 0 issued and outstanding at September 30, 2020 and December 31, 2019, respectively

389,548

-

Common Stock, $0.01 par value, 2,000,000,000 shares authorized, 415,744,518 and 415,520,780 issued and outstanding at September 30, 2020 and December 31, 2019, respectively

4,158

4,156

Additional paid-in capital

5,554,559

5,498,226

Retained earnings (accumulated deficit)

(1,094,589

)

549,733

Accumulated other comprehensive income (loss)

52,074

682,151

Total New Residential stockholders’ equity

5,329,194

7,157,710

Noncontrolling interests in equity of consolidated subsidiaries

99,437

78,550

Total Equity

5,428,631

7,236,260

$

30,406,364

$

44,863,454

NON-GAAP MEASURES AND RECONCILIATION TO GAAP NET INCOME

New Residential has five primary variables that impact its operating performance: (i) the current yield earned on the Company’s investments, (ii) the interest expense under the debt incurred to finance the Company’s investments, (iii) the Company’s operating expenses and taxes, (iv) the Company’s realized and unrealized gains or losses on investments, including any impairment or reserve for expected credit losses and (v) income from the Company’s origination and servicing businesses. "Core earnings" is a non-GAAP measure of the Company’s operating performance, excluding the fourth variable above and adjusts the earnings from the consumer loan investment to a level yield basis. Core earnings is used by management to evaluate the Company’s performance without taking into account: (i) realized and unrealized gains and losses, which although they represent a part of the Company’s recurring operations, are subject to significant variability and are generally limited to a potential indicator of future economic performance; (ii) incentive compensation paid to the Company’s manager; (iii) non-capitalized transaction-related expenses; and (iv) deferred taxes, which are not representative of current operations.

The Company’s definition of core earnings includes accretion on held-for-sale loans as if they continued to be held-for-investment. Although the Company intends to sell such loans, there is no guarantee that such loans will be sold or that they will be sold within any expected timeframe. During the period prior to sale, the Company continues to receive cash flows from such loans and believes that it is appropriate to record a yield thereon. In addition, the Company’s definition of core earnings excludes all deferred taxes, rather than just deferred taxes related to unrealized gains or losses, because the Company believes deferred taxes are not representative of current operations. The Company’s definition of core earnings also limits accreted interest income on RMBS where the Company receives par upon the exercise of associated call rights based on the estimated value of the underlying collateral, net of related costs including advances. The Company created this limit in order to be able to accrete to the lower of par or the net value of the underlying collateral, in instances where the net value of the underlying collateral is lower than par. The Company believes this amount represents the amount of accretion the Company would have expected to earn on such bonds had the call rights not been exercised.

Beginning January 1, 2020, the Company’s investments in consumer loans are accounted for under the fair value option. Core earnings adjusts earnings on consumer loans to a level yield to present income recognition across the consumer loan portfolio in the manner in which it is economically earned, to avoid potential delays in loss recognition, and align it with the Company’s overall portfolio of mortgage-related assets which generally record income on a level yield basis. With respect to consumer loans classified as held-for-sale, the level yield is computed through the expected sale date. With respect to the gains recorded under GAAP in 2014 and 2016 as a result of a refinancing of, and the consolidation of, the debt related to the Company’s investments in consumer loans, and the consolidation of entities that own the Company’s investments in consumer loans, respectively, the Company continues to record a level yield on those assets based on their original purchase price.

While incentive compensation paid to the Company’s manager may be a material operating expense, the Company excludes it from core earnings because (i) from time to time, a component of the computation of this expense will relate to items (such as gains or losses) that are excluded from core earnings, and (ii) it is impractical to determine the portion of the expense related to core earnings and non-core earnings, and the type of earnings (loss) that created an excess (deficit) above or below, as applicable, the incentive compensation threshold. To illustrate why it is impractical to determine the portion of incentive compensation expense that should be allocated to core earnings, the Company notes that, as an example, in a given period, it may have core earnings in excess of the incentive compensation threshold but incur losses (which are excluded from core earnings) that reduce total earnings below the incentive compensation threshold. In such case, the Company would either need to (a) allocate zero incentive compensation expense to core earnings, even though core earnings exceeded the incentive compensation threshold, or (b) assign a "pro forma" amount of incentive compensation expense to core earnings, even though no incentive compensation was actually incurred. The Company believes that neither of these allocation methodologies achieves a logical result. Accordingly, the exclusion of incentive compensation facilitates comparability between periods and avoids the distortion to the Company’s non-GAAP operating measure that would result from the inclusion of incentive compensation that relates to non-core earnings.

With regard to non-capitalized transaction-related expenses, management does not view these costs as part of the Company’s core operations, as they are considered by management to be similar to realized losses incurred at acquisition. Non-capitalized transaction-related expenses are generally legal and valuation service costs, as well as other professional service fees, incurred when the Company acquires certain investments, as well as costs associated with the acquisition and integration of acquired businesses.

Since the third quarter of 2018, as a result of the Shellpoint Partners LLC ("Shellpoint") acquisition, the Company, through its wholly owned subsidiary, NewRez, originates conventional, government-insured and nonconforming residential mortgage loans for sale and securitization. In connection with the transfer of loans to the GSEs or mortgage investors, the Company reports realized gains or losses on the sale of originated residential mortgage loans and retention of mortgage servicing rights, which the Company believes is an indicator of performance for the Servicing and Origination segments and therefore included in core earnings. Realized gains or losses on the sale of originated residential mortgage loans had no impact on core earnings in any prior period, but may impact core earnings in future periods.

Beginning with the third quarter of 2019, as a result of the continued evaluation of how Shellpoint operates its business and its impact on the Company’s operating performance, core earnings includes Shellpoint’s GAAP net income with the exception of the unrealized gains or losses due to changes in valuation inputs and assumptions on MSRs owned by NewRez, and non-capitalized transaction-related expenses. This change was not material to core earnings for the quarter ended September 30, 2019.

Management believes that the adjustments to compute "core earnings" specified above allow investors and analysts to readily identify and track the operating performance of the assets that form the core of the Company’s activity, assist in comparing the core operating results between periods, and enable investors to evaluate the Company’s current core performance using the same measure that management uses to operate the business. Management also utilizes core earnings as a measure in its decision-making process relating to improvements to the underlying fundamental operations of the Company’s investments, as well as the allocation of resources between those investments, and management also relies on core earnings as an indicator of the results of such decisions. Core earnings excludes certain recurring items, such as gains and losses (including impairment and reserves as well as derivative activities) and non-capitalized transaction-related expenses, because they are not considered by management to be part of the Company’s core operations for the reasons described herein. As such, core earnings is not intended to reflect all of the Company’s activity and should be considered as only one of the factors used by management in assessing the Company’s performance, along with GAAP net income which is inclusive of all of the Company’s activities.

The primary differences between core earnings and the measure the Company uses to calculate incentive compensation relate to (i) realized gains and losses (including impairments and reserves for expected credit losses), (ii) non-capitalized transaction-related expenses and (iii) deferred taxes (other than those related to unrealized gains and losses). Each are excluded from core earnings and included in the Company’s incentive compensation measure (either immediately or through amortization). In addition, the Company’s incentive compensation measure does not include accretion on held-for-sale loans and the timing of recognition of income from consumer loans is different. Unlike core earnings, the Company’s incentive compensation measure is intended to reflect all realized results of operations. The Gain on Remeasurement of Consumer Loans Investment was treated as an unrealized gain for the purposes of calculating incentive compensation and was therefore excluded from such calculation.

Core earnings does not represent and should not be considered as a substitute for, or superior to, net income or as a substitute for, or superior to, cash flows from operating activities, each as determined in accordance with U.S. GAAP, and the Company’s calculation of this measure may not be comparable to similarly entitled measures reported by other companies. Set forth below is a reconciliation of core earnings to the most directly comparable GAAP financial measure (dollars in thousands, except share and per share data):

Three Months Ended

September 30, 2020

June 30, 2020

Net income (loss) attributable to common stockholders

$

77,921

$

(8,868

)

Adjustments for Non-Core Earnings:

Impairment

10,735

(21,710

)

Change in fair value of investments

(203,652

)

(27,516

)

(Gain) loss on settlement of investments, net

94,068

81,382

Other (income) loss

20,646

47,366

Other Income and Impairment attributable to non-controlling interests

(4,360

)

19,332

Non-capitalized transaction-related expenses

17,795

14,195

Preferred stock management fee to affiliate

3,048

3,048

Deferred taxes

99,374

25,277

Interest income on residential mortgage loans, held-for-sale

9,579

8,424

Adjust consumer loans to level yield

363

(995

)

Core earnings of equity method investees:

Excess mortgage servicing rights

6,120

265

Core Earnings

$

131,637

$

140,200

Net Income (Loss) Per Diluted Share

$

0.19

$

(0.02

)

Core Earnings Per Diluted Share

$

0.31

$

0.34

Weighted Average Number of Shares of Common Stock Outstanding, Diluted

420,968,626

415,661,782

NET INCOME BY SEGMENT

Servicing and Origination

Residential Securities and Loans

Origination

Servicing

MSRs &

Servicer

Advances

Residential

Securities &

Call Rights

Residential

Loans

Corporate

& Other

Total

Quarter Ended September 30, 2020

Interest income

$

17,407

$

373

$

91,576

$

61,034

$

33,913

$

29,545

$

233,848

Servicing revenue, net

(3,767

)

111,420

(151,582

)

-

-

-

(43,929

)

Gain on originated mortgage loans, held-for-sale, net

445,578

346

49,174

-

-

-

495,098

Total revenues

459,218

112,139

(10,832

)

61,034

33,913

29,545

685,017

Interest expense

10,977

90

59,650

15,652

19,326

24,833

130,528

G&A and other

136,086

81,767

78,831

930

10,361

31,067

339,042

Total operating expenses

147,063

81,857

138,481

16,582

29,687

55,900

469,570

Other income (loss)

123

-

(19,753

)

36,941

44,699

(61,990

)

20

Impairment

-

-

218

(3,849

)

14,366

-

10,735

Income (loss) before income taxes

312,278

30,282

(169,284

)

85,242

34,559

(88,345

)

204,732

Income tax expense (benefit)*

71,304

6,044

15,682

-

7,783

(1

)

100,812

Net income (loss)

$

240,974

$

24,238

$

(184,966

)

$

85,242

$

26,776

$

(88,344

)

$

103,920

Noncontrolling interests in income (loss) of consolidated subsidiaries

4,840

-

2,612

-

-

4,188

11,640

Dividends on preferred stock

$

-

$

-

$

-

$

-

$

-

$

14,359

$

14,359

Net income (loss) attributable to common stockholders

$

236,134

$

24,238

$

(187,578

)

$

85,242

$

26,776

$

(106,891

)

$

77,921

Servicing and Origination

Residential Securities and Loans

Origination

Servicing

MSRs &

Servicer

Advances

Residential

Securities &

Call Rights

Residential

Loans

Corporate

& Other

Total

Quarter Ended June 30, 2020

Interest income

$

8,963

$

1,115

$

108,386

$

33,663

$

47,284

$

32,787

$

232,198

Servicing revenue, net

(1,998

)

96,885

(185,346

)

-

-

-

(90,459

)

Gain on originated mortgage loans, held-for-sale, net

281,937

343

29,591

-

(1,849

)

-

310,022

Total revenues

288,902

98,343

(47,369

)

33,663

45,435

32,787

451,761

Interest expense

5,667

111

60,594

17,679

17,471

14,881

116,403

G&A and other

102,462

73,907

91,454

344

19,278

32,688

320,133

Total operating expenses

108,129

74,018

152,048

18,023

36,749

47,569

436,536

Other income (loss)

390

-

(90,665

)

47,837

36,676

30,365

24,603

Impairment

-

-

(91

)

(25,134

)

3,515

-

(21,710

)

Income (loss) before income taxes

181,163

24,325

(289,991

)

88,611

41,847

15,583

61,538

Income tax expense (benefit)*

50,285

6,752

(42,562

)

-

2,918

16

17,409

Net income (loss)

$

130,878

$

17,573

$

(247,429

)

$

88,611

$

38,929

$

15,567

$

44,129

Noncontrolling interests in income (loss) of consolidated subsidiaries

4,419

-

8,591

-

-

25,630

38,640

Dividends on preferred stock

$

-

$

-

$

-

$

-

$

-

$

14,357

$

14,357

Net income (loss) attributable to common stockholders

$

126,459

$

17,573

$

(256,020

)

$

88,611

$

38,929

$

(24,420

)

$

(8,868

)

*Beginning in the third quarter of 2020, we revised our methodology of allocating tax expense within the Servicing and Origination segments. Specifically, taxes are now allocated based on intercompany agreements rather than based on a more general pro rata approach. We believe the change better reflects the operating performance of each respective segment. Amounts for prior periods have been recast to conform with the current period presentation.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information in this press release constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, upside for our investment portfolio such as our MSR portfolio benefitting as rates rise and multiples improve, our ability to maintain high levels of cash, grow book value and generate earnings for our shareholders and ability to realize annualized savings of approximately $50 million from our Q3’20 refinancing activity. These statements are not historical facts. They represent management’s current expectations regarding future events and are subject to a number of trends and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those described in the forward-looking statements. Accordingly, you should not place undue reliance on any forward-looking statements contained herein. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled "Cautionary Statements Regarding Forward Looking Statements," "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in the Company’s most recent annual and quarterly reports and other filings filed with the U.S. Securities and Exchange Commission, which are available on the Company’s website (www.newresi.com). New risks and uncertainties emerge from time to time, and it is not possible for New Residential to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Forward-looking statements contained herein speak only as of the date of this press release, and New Residential expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in New Residential's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

ABOUT NEW RESIDENTIAL

New Residential is a leading provider of capital and services to the mortgage and financial services industry. The Company’s mission is to generate attractive risk-adjusted returns in all interest rate environments through a portfolio of investments and operating businesses. New Residential has built a diversified, hard-to-replicate portfolio with high-quality investment strategies that have generated returns across different interest rate environments over time. New Residential’s portfolio is composed of mortgage servicing related assets (including investments in operating entities consisting of servicing, origination, and affiliated businesses), residential securities (and associated called rights) and loans, and consumer loans. New Residential’s investments in operating entities include its mortgage origination and servicing subsidiary, NewRez, and its special servicing division, Shellpoint Mortgage Servicing, as well as investments in affiliated businesses that provide services that are complementary to the origination and servicing businesses and other portfolios of mortgage related assets. Since inception in 2013, New Residential has a proven track record of performance, growing and protecting the value of its assets while generating attractive risk-adjusted returns and delivering over $3.4 billion in dividends to shareholders. New Residential is organized and conducts its operations to qualify as a real estate investment trust ("REIT") for federal income tax purposes. New Residential is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm, and headquartered in New York City.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201026005321/en/

Contacts

Investor Relations
Kaitlyn Mauritz
212-479-3150
IR@NewResi.com