New Residential Investment Corp.

The REIT also reveals plans to expand in the single-family rental market with a new brand and target of $5 billion in acquisitions over five years.

The company aims to use the additional capacity to get its non-qualified mortgage business back to producing $125 million per month, and anticipates more purchases of mortgage servicing rights, representatives said in its Q1 earnings call.

For a lot of IMBs facing shrinking backlogs and falling secondary market spreads, the attraction of hitting a bid and taking the easy way out via an acquisition may become irresistible, writes Chris Whalen.

The REIT is planning its own stock sale to pay for the all-cash purchase from Lone Star Funds.

But the company sees reasons to be optimistic about the second half of the year, CEO and Chairman Michael Nierenberg said during its fourth quarter earnings call

The subsidiary of New Residential Investment produced nearly $400 million in non-QM volume in the first quarter of 2020 before putting a hold on the product offering in March.

Company CEO Michael Nierenberg previously commented the real estate investment trust's parts could be worth more than the whole.

The company had lower losses on its mortgage servicing rights investments compared with the second quarter.

Minus various expenses including corporate, legal and servicing rights valuation, Ocwen had adjusted pretax income of $13.5 million.

The company lost $8.9 million in the second quarter, but its origination and servicing businesses were profitable.

The lenders also are receiving warrants to purchase New Residential stock.

But Black Knight and Arch Capital's mortgage insurance business aren't as affected, at least so far.

Ocwen Financial has approximately $749 million of liquidity from various sources to deal with servicing issues arising from the coronavirus, a company press release said.

New Residential Investment, a real estate investment trust focused on housing, is selling a portfolio of debt with a face value of $6 billion.

Mortgage real estate investment trusts are taking stock of their financial ability to respond to market shocks and other concerns stemming from the coronavirus.

Mortgage lenders could benefit from the surge in refinancing due to widening market spreads, and that could help offset damage to servicing rights portfolio valuations, according to Keefe, Bruyette & Woods.

Altisource Portfolio Solutions lost nearly the same amount of money as it did for the whole year while it continued the business transition started in 2018.

The cancellation by New Residential of a money-losing subservicing agreement should benefit Ocwen's financial results going forward, the company said.

Ocwen Financial Corp. is on track to become profitable on a pretax basis by the third quarter without any special items enhancing earnings, according to a preliminary release of its fourth-quarter results.

The strong refinance market in the fourth quarter propelled earnings at three different mortgage-related business that also were dealing with merger and acquisition activity during and after the period.