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New Residential Investment Corp., a publicly traded mortgage real estate investment trust, today reported that its third-quarter earnings increased 20% from the previous quarter, citing its acquisition of Caliber Home Loans and the strength of its investment portfolio.
New Residential reported earnings for the quarter ended Sept. 30 of $141.6 million, or 30 cents per diluted common share, up from $121.3 million, or 26 cents per diluted common share, in the second quarter.
In addition to closing the acquisition of Caliber Home Loans, which it first announced in April, New Residential also raised $465 million in gross proceeds in an 18.6 million-share preferred stock offering, the company said.
It reported origination funded production in the quarter of $34.5 billion in unpaid principal balance (UPB), up 47% in the second quarter and 91% from the third quarter of 2020. It also reported a total gain on sale margin of 1.61% for the quarter, compared to 1.31% for the previous second quarter.
New Residential also priced two securitizations — one investor loan and one Non-QM — representing approximately $600 million UPB of collateral. It also acquired $91 million of early buyout (EBO) loans, and $570 million of Non-QM and Investor Loans, the company said.
“Our performance in the third quarter demonstrated the strength of our overall platform across complementary strategies,” New Residential Chairman, CEO & President Michael Nierenberg said. “Third quarter earnings were supported by the addition of the Caliber Home Loans Inc. platform, strength in our investment portfolio, slowing MSR amortization and higher recapture.”
Nierenberg said the company has evolved over the last few years “into a true asset creator, and, with the recently announced agreement to acquire Genesis Capital LLC, we plan to further our ability to create, retain and manage strong assets for our balance sheet.”
New Residential announced on Oct. 11 that is had entered into a definitive agreement with affiliates of The Goldman Sachs Group to acquire Genesis Capital, a leading business purpose lender that provides solutions to developers of new construction, fix and flip and rental hold projects, and to acquire a related portfolio of loans.