NRZ Q3 2021 Earnings Report
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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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