New Residential Investment Corp. Are Experts in Residential Mortgage Loans

The investment portfolio of New Residential Investment Corporation (Corp. for short) is made up of MSRs, Residential Mortgages Loans, and Consumer Loans.


What is an MSR? MSR stands for Mortgage Servicing Right and if a mortgage servicer has this right, they will be given access to a pool of mortgage pools for a fee. An MSR is made up of two parts. One is a basic fee and the other is an Excess MSR. The amount of this basic fee is based on how much financial compensation that a person gets for servicing duties. If the amount is higher than the basic fee than that would be called the Excess MSR. New Residential Investment Corp. will be the owner of the Excess MSR as the collector of the money that comes from the MSR. New Residential says that a person should not assume servicing duties or any other liabilities.

Residential Mortgage

New Residential Investment Corp thinks that there are opportunities when it comes to investing in residential and non-performing mortgage loans. The other kinds of mortgage loans that a person could be interested in are re-performing, performing and reverse. When acquiring all kinds of mortgage loans, this corporation will only buy a discount of the price. This corporation does work on its own or with another servicing investor to get prices of these mortgages at a higher price. This company will also work to make performance of these mortgages improve by giving these mortgages to another mortgage servicer. This transfer should get higher yields. This corporation could be a person’s choice to make money from mortgage loans.

Consumer Loans

About New Residential Investment Corporation greatly improved its consumer loan portfolio by acquiring the HSBC Finance Corporation in April of 2013. New Residential. They partnered with Springleaf Finance, Inc., a Fortress affiliate, to purchase HSBC. The total purchase of HSBC ended up being $3 billion. This purchase does include fees, closing costs and adjustments based on net cash flows that HSBC made in 2012.


What is New Residential Investment Corp.? It is a trust that specializes in investing in residential real estate. When it invests, it targets residential mortgage-based securities, excess mortgage servicing rights, home mortgage loans and other portfolios that are related to home mortgage loans. This company started in September of 2011 and is based in New York City.

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