NEW YORK & LUXEMBOURG--(BUSINESS WIRE)--
New Residential Investment Corp. (NYSE:NRZ, together with its
subsidiaries, "New Residential") and Altisource Portfolio Solutions S.A.
(NASDAQ:ASPS, together with its subsidiaries, "Altisource") today
announced that New Residential and Altisource entered into an 8-year
Cooperative Brokerage Agreement, pursuant to which Altisource's licensed
real estate brokerage subsidiaries will exclusively provide marketing
and listing services for real estate owned ("REO") properties included
in certain portfolios of mortgage loans for which New Residential has
acquired, or will acquire, the mortgage servicing rights ("MSR").
The Cooperative Brokerage Agreement includes the following key terms:
The MSR portfolios covered by the agreement include (i) an
approximately $110 billion UPB(1) non-agency MSR portfolio
that New Residential agreed to acquire from certain subsidiaries of
Ocwen Financial Corporation in July 2017 (the "Ocwen Portfolio"), and
(ii) an approximately $6 billion UPB(1) non-agency MSR
portfolio that New Residential agreed to acquire from certain
subsidiaries of PHH Corporation in December 2016.(2)
Altisource's licensed real estate brokerage subsidiaries will begin to
receive REO referrals under the agreement as the MSR portfolios
transfer to New Residential.(3)
New Residential's licensed real estate brokerage subsidiary will
receive a referral commission for each REO sold by Altisource on its
The agreement includes termination events, vendor oversight and audit
rights and reporting requirements, and provisions designed to ensure
pricing for REO marketing and listing services remains competitive
throughout the term of the contract.
In addition to the Cooperative Brokerage Agreement, New Residential and
Altisource have entered into a letter of intent pursuant to which New
Residential and Altisource agreed to negotiate, in good faith, a
definitive services agreement under which Altisource would be the
exclusive provider of certain fee-based services with respect to the
Ocwen Portfolio. Pursuant to the letter of intent, New Residential and
Altisource have also committed to work together to seek further
opportunities to expand their relationship.
Investors should refer to the Current Report on Form 8-K filed by each
company for additional information regarding the terms of these
"We are pleased to announce this new partnership with Altisource. By
leveraging Altisource's suite of mortgage and real estate services, we
aim to maximize returns for investors in the underlying loans and
improve the performance of our MSR portfolio," said Michael Nierenberg,
Chairman and Chief Executive Officer of New Residential. "We believe
this is a mutually beneficial partnership and we look forward to working
closely with Altisource."
William B. Shepro, Chief Executive Officer of Altisource commented, "I
am very pleased to establish a relationship with New Residential, one of
the largest and most active mortgage servicing rights owners in the
industry. These agreements strengthen Altisource's existing position as
a leading provider of services to the mortgage industry, provide greater
visibility into Altisource's revenue and earnings from the Ocwen
Portfolio and provide a great opportunity to develop and grow
relationships with New Residential and PHH Corporation."
Unpaid principal balance as of June 30, 2017.
Subject to PHH Corporation approval of Altisource as a vendor.
New Residential's acquisition of such MSR portfolios remains
subject to the approval of certain counterparties to the related
securitizations or other servicing transactions and other
customary closing conditions.
ABOUT NEW RESIDENTIAL INVESTMENT CORP.
New Residential focuses on opportunistically investing in, and actively
managing, investments related to residential real estate. The Company
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. The Company is managed by an
affiliate of Fortress Investment Group LLC (NYSE: FIG), a global
investment management firm.
ABOUT ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Altisource Portfolio Solutions S.A. is an integrated service provider
and marketplace for the real estate and mortgage industries. Combining
operational excellence with a suite of innovative services and
technologies, Altisource helps solve the demands of the ever-changing
market. Additional information is available at www.Altisource.com.
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 receipt,
and timing of receipt, of approvals to transfer MSR portfolio to New
Residential, the transaction maximizing returns for investors in the
underlying loans and improving the performance of New Residential's MSR
portfolio, the ability of New Residential and Altisource to negotiate a
definitive services agreement, maintain a good relationship, the ability
to close New Residential's proposed transactions with PHH Corporation as
scheduled, and any anticipated benefits of such agreements for the
shareholders of New Residential and Altisource. These statements are
based on the current expectations and beliefs of management of each of
New Residential and Altisource 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 Altisource. Neither New
Residential nor Altisource 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 Operations" in each
company's Quarterly Reports on Form 10-Q and Annual Reports on Form
10-K, which are available on each company's website (www.newresi.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 New Residential's acquisition of the covered MSR
portfolios, including obtaining the necessary third party approvals;
uncertainties as to the timing or completion of transfers related to New
Residential's acquisition of the covered MSR portfolios; litigation
relating to the transactions; the possibility of early
termination of the Cooperative Brokerage Agreement, the possibility that
the parties will not be able to negotiate a satisfactory services
agreement, 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 Altisource 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
Altisource 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
View source version on businesswire.com: http://www.businesswire.com/news/home/20170828005247/en/
New Residential Investment Corp.
Portfolio Solutions S.A.
Michelle D. Esterman, +352 2469 7950
Source: New Residential Investment Corp. and Altisource Portfolio Solutions S.A.
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