New Penn to become NewRez in 2019
New Penn Financial will change its name to NewRez at the start of 2019, reflecting its acquisition earlier this year by New Residential Investment Corp.
"We are very excited to announce the rebrand and for the growth opportunities it signals," said Kevin Harrigan, president and CEO of New Penn, in a press release. "NewRez combines the strength and experience of the New Penn and New Residential brands under one umbrella, and we look forward to the benefits we will collectively bring to borrowers through our wholesale, correspondent lending, direct-to-consumer and joint venture/retail business channels."
The NewRez name reflects New Penn's close alignment with its parent company, as well as the organization's commitment to bringing value to its customer relationships and strategic partnerships, the press release said.
Prior to the transaction, which closed in July, New Penn had been a subsidiary of Shellpoint Partners. New Residential acquired Shellpoint from Ranieri Partners in a deal initially valued at $190 million.
Until it purchased Shellpoint, the real estate investment trust was mainly an owner of mortgage servicing rights. Those MSRs are subserviced by a number of companies, including New Penn. Ocwen, Ditech, Flagstar and Mr. Cooper.
Details regarding the exact timeline for the rebrand will be released in coming weeks, according to the press release.
On Nov. 1, New Residential priced a follow-on common stock offering at $17.32 per share with proceeds of $433 million.
Since the offering was priced, New Residential has traded as high as $17.82 a share and as low as $16.57 per share.