One of the New York-based trusts is New Residential Investment Corp, which began operating in 2011 but went public in 2013. It has found the real estate market of the US to be full of opportunities and that is where it has concentrated its operations. So far, New Residential Investment Corp operates under three business segments namely; Loans, Servicing Related Assets and Residential Securities. Its investments in Mortgage Servicing Rights are on residential mortgage loans and the servicer advances.
New Residential Investment Corp has also developed investments in the corporate and consumer loans and has a portfolio of real estate securities. The company holds interests in consumer loans which are in the forms of owner loans and unsecured loans. New Residential Investment Corp recognition as a trust by the federal governments means its liable to pay the annual income taxes. There is a law that allows such a company to enjoy tax advantage if ninety percent of its income is distributed to shareholders.
The company ‘s objective is to utilize the knowledge and experience about the market to increase the returns of its many investments. The people in the company are qualified to help New Residential Investment Corp achieve this objective. Higher returns for the company means more dividends to all its shareholders.
One of the strategies New Residential Investment Corp is hoping will increase its future cash flows is increased investments in excess MSRs. The country’s mortgage servicing market is growing , therefore the probability for greater returns in future are high. Also as the banks will be reducing their MSRs, its an opportunity for the company to invest in them more.
To know more visit @: www.newresi.com/contact