New Residential Investment Corp is a global real estate investment firm that majorly focuses on management and investments connected to the residential real estate. The company specializes in various segments which include investments in multiple mortgage rights, in excess mortgage rights, in real estate securities, corporates, and many others. The company has also invested in consumer loans, agency RMBS as well as multiple non-agency RMBS. This investment has transformed the lives of many people.
Currently, around 74% of mortgage servicing rights are owned by banks although the number is expected to reduce with time due to heightened capital reserve requirement, environmental challenges, and regulatory scrutiny. This will create opportunities to entities such as New Residential Investment to take part over through co-investment in the equal excess mortgage servicing rights.
A mortgage servicing rights consist of two components. The first component is a basic fee; which is the amount compensated as a result of performed servicing duty. On the other hand, the second component is the excess mortgage servicing rights. It refers to the amount that surpass the necessary fee. As the sole proprietor of excess mortgage servicing rights, we collect cash flow sourced from it each month, but we do not offer servicing responsibilities and liabilities.