New Residential and Walter Investment Announce Mortgage Servicing Rights Purchase Agreement and Subservicing Agreement
In addition, New Residential,
Assuming completion of both transactions with Walter and WCO, aggregate
purchase price is expected to be approximately
New Residential, through its wholly-owned subsidiary,
Concurrently with the Purchase Agreement, NRM entered into a
subservicing agreement with
“We are excited to announce this transaction with Walter and look
forward to a successful long-term strategic partnership,” said
The transactions are expected to close in the third or fourth quarter of 2016 and are subject to (i) GSE and other regulatory approvals, (ii) for the WCO assets, negotiation and execution of definitive documentation and (iii) certain customary closing conditions.
New Residential focuses on opportunistically investing in, and
actively managing, investments related to residential real estate. New
Residential primarily targets investments in mortgage servicing related
assets and other related opportunistic investments. 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
Walter is a diversified mortgage banking firm focused primarily on
the servicing and origination of residential loans, including reverse
loans. Based in
Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding the expected closing of the purchase of MSRs from Walter, the entry into a legally binding agreement to purchase certain assets of WCO or the closing of any such transaction with WCO. These statements are based on the current expectations and beliefs of management of each of New Residential and Walter and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond the control of New Residential and Walter, such as regulatory approvals. Neither New Residential nor Walter can give any assurance that its expectations will be attained as described herein, or at all. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” in each company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, which are available on each company’s website (www.newresi.com; www.walterinvestment.com). Factors which could have a material adverse effect on each company’s operations, future prospects or the transactions described herein include, but are not limited to, various risks relating to such transactions, including in respect of the satisfaction of closing conditions to the transactions; unanticipated difficulties financing the purchase prices; unanticipated expenditures relating to the transactions; uncertainties as to the timing of the transactions; litigation relating to the transactions; and the inability to obtain, or delays in achieving the expected benefits of the transactions. In addition, new risks and uncertainties emerge from time to time, and it is not possible for New Residential or Walter 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. Such forward-looking statements speak only as of the date of this press release. New Residential and Walter expressly disclaim any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in their expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.
New Residential Investment Corp.
Walter Investment Management Corp.