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New Residential Investment Corp. Message Board

  • bobstewart1952 bobstewart1952 Mar 13, 2014 12:35 AM Flag

    FIG owns 80% of Springleaf.

    They could have provided the financing or at the very least guaranteed the note. This looks to me like they are setting up an agreeable working relationship for future business.

    But wee keep the mortgaging servicing rights while mitigating 25% of the risk.

    Bob S.

    Sentiment: Buy

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    • Here is my guess subjec to change once additional information is released. Merrill Lynch did its due diligence on the deal by having the winning bid. It finances 75% and keeps 25%. My guess is that the 75% financed is secured with those same assets or maybe not. So, why does Merrill do this? Merrill gets a very secure interest stream of income since NRZ has other income to use. These are subordinate tranches so this makes the income more secure.

13.84+0.40(+2.98%)Jun 30 4:00 PMEDT