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Corporate News Blog - New Residential Investment and Ocwen Financial Announce Agreement Relating to Mortgage Servicing Rights Transfer and Subservicing Agreement

LONDON, UK / ACCESSWIRE / July 26, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for New Residential Investment Corp. (NYSE: NRZ) ("NRZ"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=NRZ. The Company and Ocwen Financial Corporation (NYSE: OCN) ("Ocwen") announced on July 24, 2017, the signing of definitive agreements for the transfer of Ocwen's interest in mortgage servicing rights (MSRs) and subservicing relating to approximately $110 billion unpaid principal balance (i.e. UPB as on June 30, 2017) of non-agency MSRs. When the MSRs will get transferred to NRZ, the new subservicing agreement will replace the existing agreements between the two companies. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on NRZ and OCN. Go directly to your stock of interest and access today's free coverage at:

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http://protraderdaily.com/optin/?symbol=OCN

NRM to pay a lump sum restructuring fee of $400 million to Ocwen

As a part of the MSR transfer agreement, Ocwen will transfer approximately $110 billion UPB of seasoned non-agency MSRs to New Residential Mortgage LLC (NRM), a wholly owned subsidiary of NRZ, subject to the their current agreements.

After acquiring the required third-party consents and the transfer of the MSRs, the subsidiary of NRZ will make a lump sum restructuring fee payment to Ocwen upon each transfer in exchange for Ocwen's foregoing payments under the existing agreements. The lump sum restructuring fees could be around $400 million that is if all the applicable MSRs are transferred to NRM. However, the transfer is subject to the approval of certain counterparties to the related securitizations and other customary closing conditions. It is anticipated that the transfers would begin as early as September 2017 and continue up till 2018.

A 5-year subservicing agreement

Along with the MSR transfer agreement, NRM has entered into a 5-year subservicing agreement with Ocwen. As per the agreement, Ocwen will subservice the mortgage loans underlying the transferred MSRs.

NRZ to buy 4.9% of Ocwen's equity

As a consequence of the transaction, NRZ has decided to make an equity investment of nearly $13.9 million to purchase about 4.9% of Ocwen's common equity.

Agreement to Bring more Stability in the Servicing Industry

Michael Nierenberg, Chairman and Chief Executive Officer of NRZ, was pleased to announce the new strategic partnership with Ocwen and stated that it is a great transaction for both companies. He mentioned that the new subservicing arrangement would secure the Company's interests in their MSR investments and lead to additional stability in the overall servicing industry. He also said that the investment portfolio of NRZ has shown a good performance till date, and he is confident in the Company's ability to continue driving shareholder value going forward.

Agreement to extend their mutually beneficial relationship

Ronald M. Faris, President and Chief Executive Officer of Ocwen, announced that NRZ has been a close business partner to Ocwen for long. He said that this new arrangement would extend and build upon their mutually beneficial relationship. He expressed that he was looking forward to working closely with NRZ to aid homeowners in their servicing portfolio.

About New Residential Investment Corp.

New Residential Investment is managed by an affiliate of Fortress Investment Group LLC (NYSE:FIG), a global investment management firm. NRZ works towards opportunistically investing in, and actively managing, investments related to residential real estate. The Company mainly targets investments in mortgage servicing related assets and other related opportunistic investments. NRZ is organized and conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes.

About Ocwen Financial Corp.

Ocwen Financial is a financial services holding Company which originates and services loans through its subsidiaries. It has its headquarters in West Palm Beach, Florida, with offices throughout the United States and in the US Virgin Islands as well as in India and the Philippines. Ocwen has been serving their customers since 1988.

Last Close Stock Review

New Residential Investment's share price finished yesterday's trading session at $15.92, marginally declining 0.19%. A total volume of 2.02 million shares have exchanged hands. The Company's stock price surged 18.01% in the previous twelve months. Additionally, the stock gained 1.27% since the start of the year. Shares of the Company have a PE ratio of 7.87 and have a dividend yield of 12.56%. The stock currently has a market cap of $4.88 billion.

At the closing bell, on Tuesday, July 25, 2017, Ocwen Financial's stock rose 1.82%, ending the trading session at $2.80. A total volume of 894.59 thousand shares have exchanged hands. The Company's stock price skyrocketed 1.08% in the past one month, 22.27% in the last three months and 66.67% in the previous twelve months. The stock currently has a market cap of $355.26 million.

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