Thu, Nov 27, 2014, 12:36 AM EST - U.S. Markets closed for Thanksgiving Day

Recent

% | $
Quotes you view appear here for quick access.

New Residential Investment Corp. Message Board

  • margretbar2 margretbar2 Jun 27, 2013 1:30 PM Flag

    Karen Finnerman bought NRZ...said so last night on FM

    NRZ, and Home Loans Servicing, HLSS, home loan servicing solutions. 7.41% yield. they have a gigantic portfolio, and as rates rise, they'll see less prepayment so the flow of funds, the revenue stream will last for longer. this one is interesting. Another one New Rresidential Investment NRZ this is one that is backed by Fortress. they're managing it. also has big exposure to mortgage servicing rights. if we see prepayments slow, servicing rights will be worth more and so many banks that need to get that capital fro their revenue stream

    Sentiment: Strong Buy

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • I almost fell off my chair. she blurted it out, I knew what she was saying, but I almost fell off the couch in surprise.

      Sentiment: Strong Buy

    • Trying to decipher your post. Good that NRZ got some exposure on Fast Money last night. HLSS is the servicing arm of OCWEN, which NCT and NSM fought tooth and nails with for the ResCap servicing rights, about 9 months ago. Most long investors here are certainly familiar with that duel, which even Berkshire Hathaway got involved with. We also know FIG manages both NCT and NRZ, along with many other companies. It's your 3rd sentence which is confusing.

      • 1 Reply to postnasaldrip45
      • Sorry, She bought NRZ and HLSS this is how the voice recognition comes out in Text...

        ......bonds are fearful of the fed tapering but the fed's going to taper if the economy's doing better and if the economy's doing better, some stock valuations are more attractive. i've been interested in how to play the rising rate environment and we've been looking around for things. and mortgage servicing rights, which are the income stream you get when you service a mortgage. you get a tiny piece of that income stream. and if rates rise, prepayment risk goes down. that income stream is more valuable. we were looking for what's a pure play, it was hard to find an absolute pure, but we found a couple. Home Loans Servicing, HLSS, home loan servicing solutions. 7.41% yield. they have a gigantic portfolio, and as rates rise, they'll see less prepayment so the flow of funds, the revenue stream will last for longer. this one is interesting. Another one New Rresidential Investment NRZ this is one that is backed by Fortress. they're managing it. also has big exposure to mortgage servicing rights. if we see prepayments slow, servicing rights will be worth more and so many banks that need to get that capital off -- to have freed up capital. let me get your thoughts.OCN i was trying to think of where i remember that stock from two people mentioned it. Steve Eisman was the one that presented it. i can't remember. but somebody else did. i don't remember, but it came up, i'll tell you that, at least twice. What they do is they service the loans that aren't clean where there's some issue, they're in foreclosure, something going on. so they are just acquiring rights from everyone and they're just creating this income stream that's very powerful. Josh Brown said, i would add i think Karen's right on the money with those plays. i know a lot of people sniffing around them.

        Sentiment: Strong Buy

    • That was from the Voice recognition text on the Fast Money video on CNBC...terrible...I tried to fix it a bit

      Sentiment: Strong Buy

      • 1 Reply to margretbar2
      • margretbar2, thanks for the post. Many investors don't yet realize that NRZ is a call option on higher mortgage rates. As your post illustrates, as mortgage rates rise, prepayments drop, and the CPR (constant prepayment rate) drops, and as a result, the income stream from loan servicing potentially continues until the loan is paid off at full term. If the CPR is much lower than NRZ has modeled, which can happen in a rising rate environment, the MSRs become very valuable, which Wes Edens pointed out on Newcastle's most recent conference call. MSRs' economic value is highly sensitive to the CPR. In my opinion, even with the 30-year fixed mortgage rate currently at 4.5%, bonds are still overpriced relative to stocks, so there is the potential for mortgage rates to rise more as the economy improves, and as financial conditions become more normal.

        Sentiment: Strong Buy

 
NRZ
12.97+0.01(+0.08%)Nov 26 4:09 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.