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Sep 30, 2021
NRZ Q3 2021 Earnings Report
Reported third quarter earnings supported by the addition of Caliber Home Loans, strength in investment portfolio, slowing MSR amortization, and higher recapture.
Key Takeaways
New Residential Investment Corp. reported a GAAP net income of $146.1 million, or $0.30 per diluted common share, and core earnings of $209.9 million, or $0.44 per diluted common share for the third quarter ended September 30, 2021. The company's performance was bolstered by the acquisition of Caliber Home Loans, a strong investment portfolio, reduced MSR amortization, and increased recapture rates.
Closed acquisition of Caliber Home Loans, Inc.
Raised $465 million in gross proceeds in an 18.6 million share preferred stock offering
Servicing portfolio grew to $476 billion in UPB, driven by the addition of MSRs from the Caliber acquisition.
Overall leverage of 2.3x, down from 3.5x at June 30, 2021
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NRZ Revenue by Segment
Revenue by Segment
Corporate Revenue
CapyFin.com Forward Guidance
New Residential estimates Newrez and Caliber Q4'21 Funded Origination Volume of approximately $35 billion to $40 billion UPB and Servicing Portfolio UPB of approximately $480 billion to $490 billion UPB.
Positive Outlook
- Estimated Newrez and Caliber Q4’21 Funded Origination Volume of approximately $35 billion to $40 billion UPB
- Estimated Newrez and Caliber Q4’21 Servicing Portfolio UPB of approximately $480 billion to $490 billion UPB
- New Residential entered into a definitive agreement with affiliates of The Goldman Sachs Group, Inc. to acquire Genesis Capital LLC
- Genesis Capital LLC provides innovative solutions to developers of new construction, fix and flip and rental hold projects
- Acquire a related portfolio of loans
Challenges Ahead
- Actual results may vary materially
- Ability to complete the acquisition of Genesis Capital LLC on a timely basis, or at all
- Ability to further our ability to create, retain and manage strong assets for our balance sheet
- Ability to increase scale, efficiency, recapture, servicing and origination leadership
- Ability to successfully integrate the businesses and realize the anticipated benefits of the Caliber acquisition