New Residential Investment Corp is a company that specializes in real estate investment trusts. The company focuses on investing in residential real estate and its mortgage assets. This company looks to help generate cash flow that is stable as well as generating returns through interest rates. Like all other companies of its kind, New Residential Investment Corp has a number of assets that are part of its investment portfolio. These include mortgage servicing rights, residential real estate loans, consumer loans and servicer advances. The first part of the New Residential Investment Corp portfolio is Excess Mortgage Servicing Rights. This is an asset which allows a mortgage loan services to manage a group of mortgage loans.
With MSRs, the firm has been able to acquire and oversee the returns of the loans as well as the payment history. The firm receives a fee for managing these mortgage loan service. With the decline of MSRs being controlled by banks, New Residential will likely have more of these assets in the near future. New Residential Investment Corp also has Servicer Advances. These are assets where the firm will have a customized feature of a particular mortgage transaction. The servicer is always compensated with a fee for managing this asset. With a Servicer Advance, mortgage loans and other financial assets are controlled by the firm and given a reimbursement.
The reimbursements are given as long as a borrower fails to make timely payments on the mortgage as well as receiving financial compensation for any available collateral property. This particular asset is mainly used to provide liquidity for the asset manager. The last type of asset that New Residential Investment Corp has is mortgage loans and consumer loans. With mortgage loans, the firm possesses and manages loans for homes and other types of residential real estate. New Residential Investment benefits by holding and profiting off mortgage loans that it buys and manages. Another asset that the firm holds is consumer loans. These are financing packages that are used to allow individuals to purchase things such as automobiles and refrigerators. The firm benefits by receiving interest payments and also profiting off loans that it purchases and then sells.