An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
NEW YORK--(BUSINESS WIRE)--
On November 8, 2021, KBRA assigned an Issuer rating of BB+ to NewRez LLC (“NewRez” or “the company”), an indirect, wholly-owned subsidiary of New Residential Investment Corp. (NYSE: NRZ; “the parent company”). The rating Outlook is Stable.
As the principal residential mortgage operating subsidiary of NRZ in recent years, NewRez has grown substantially, both with respect to its servicing portfolio, as well as production, since being acquired by the parent company in July 2018. During 2021, NewRez originated $97.6 billion of loans, and as of YE21, reflected an owned servicing portfolio of ~$122 billion UPB; the majority of which was comprised of GNMA loans. NewRez’s recent year operating performance has been favorable, in what has been a particularly robust and highly profitable origination environment. The company’s creditor profile – highlighted by solid capitalization / moderate leverage, and adequate liquidity – is considered durable.
NewRez’s Issuer rating is anchored by that of its ultimate parent NRZ, for which we maintain a BB+ Issuer rating with a Stable Outlook. NRZ’s rating is supported by its scale operations as a leading mortgage originator / servicer – NewRez, together with recently acquired, Caliber Home Loans, Inc. – as well as the parent company’s heritage investment portfolio and operations, $6.7 billion of consolidated total equity at YE21, and a solid operating performance history outside of the extremely challenging second half of March 2020. As noted, NewRez has been, and remains, a key operating division of NRZ; one which has become an increasingly significant contributor to the parent company’s financial performance, particularly given the March 2020 liquidation of a meaningful amount of NRZ’s mortgage investments. NewRez’s well-regarded executive management team, including those running its Shellpoint servicing division, benefits the company’s, as well as the parent company’s, respective credit profiles. Importantly, NewRez has considerably lower, true economic exposure to the volatility associated with its owned-MSR, since the majority of the asset risk is transferred to NRZ through excess spread arrangements, with the accounting liability (“ESR financing payable”) tracking the life of the MSR. NewRez’s prospective capital structure could be altered somewhat depending on the ultimate parent’s financial management decisioning, yet the subsidiary’s capital strength is expected by KBRA to be preserved over time.
Click here to view the report. To access ratings and relevant documents, click here.
Disclosures
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, andESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.
New Residential is a leading provider of capital and services to the mortgage and financial services industry. The Company's mission is to generate attractive risk-adjusted returns in all interest rate environments through a portfolio of investments and operating businesses. New Residential has built a diversified, hard-to-replicate portfolio with high-quality investment strategies that have generated returns across different interest rate environments over time. New Residential's portfolio is composed of mortgage servicing related assets (including investments in operating entities consisting of servicing, origination, and affiliated businesses), residential securities (and associated called rights) and loans, and consumer loans. New Residential's investments in operating entities include its mortgage origination and servicing subsidiary, NewRez, and its special servicing division, Shellpoint Mortgage Servicing, as well as investments in affiliated businesses that provide services that are complementary to the origination and servicing businesses and other portfolios of mortgage related assets. Since inception in 2013, New Residential has a proven track record of performance, growing and protecting the value of its assets while generating attractive risk-adjusted returns and delivering over $3.4 billion in dividends to shareholders. 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 Fortress Investment Group LLC, a global investment management firm, and headquartered in New York City.
