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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (65225)	10/21/2020 12:26:33 PM
From: E_K_S	Respond to of 78958

I own some NRZ and also own NRZpB. Underwater on both but I like their mortgage servicing rights business. That s/d do well but when somebody refinances, they lose those servicing rights so not so good in an interest rate environment that continues to fall. No plan to sell either and total position small. It was larger but booked profit in NRZ at the time and moved some of those funds into the preferred. FWIW, the preferred may be worth looking at but not too excited about their mortgage backed security and loan business at this time. EKS

To: Madharry who wrote (65225)	10/26/2020 8:24:21 AM
From: E_K_S	Respond to of 78958

New Residential Q3 core EPS falls short as interest income slides Oct. 26, 2020 7:28 AM ET\|About: New Residential Investment ... (NRZ)\|By: Liz Kiesche, SA News Editor New Residential Investment (NYSE: NRZ) falls 1.5% in premarket trading after Q3 core EPS of 31 cents misses the average analyst estimate of 36 cents and slipped from 34 cents in Q2 2020. Q3 revenue of $685.0M beats the consensus estimate of $623.2M and increased from $627.9M a year ago; includes gain on originated mortgage loans, held for sale, net, of $495.1M vs. $126.7M a year earlier. Q3 interest income of $233.8M fell from $448.1M a year earlier. Q3 servicing revenue, net of change in fair value, was -$43.9M vs. $53.1M in the year-ago quarter; change in fair value was -$395M in Q3 2020 and -$228M in Q3 2019. Q3 origination segment pretax income of $312.3M increased 72% Q/Q; origination production of $18.1B in unpaid principal balance rose 118% Q/Q. Q3 servicing pretax net income of $30.3M, up 24% Q/Q. Mortgaging servicing rights portfolio totaled ~$571B UPB as of Sept. 30, 2020 vs. $610B UPB as of June 30, 2020. In residential securities, NRZ purchased agency securities with net face value of $5.1B during the quarter and sold non-agency securities with $616M face value. During the quarter, NRZ sold $279M (face value) of residential loans and completed three securitizations with total collateral of $1.3B UPB. ------------------------------------------------------------------ There are a lot of moving parts in this company. I had been focused on their mortgage servicing 'rights' but they are hard to value especially as rates have fallen. I will be looking at NRZpB for a possible add if it sells off today. The floating feature starts 8/15/2024 Three-Month LIBOR plus 5.640% per annum New Residential Investment Corp., 7.125% Ser B Fixed/Float Cumul Red Prfrd Stock