Citi Sells Mortgage Servicing Arm
Citigroup is pulling out of mortgage servicing, a business it has been in since 1979. It has attracted regulatory scrutiny since the financial crisis. Citi will be selling the servicing rights which includes chasing late payments and dealing with administration on 780,000 mortgages backed by Fannie Mae and Freddie Mac.
“Citigroup is pulling out of mortgage servicing, a business it has been in since 1979”
~ Financial Times
The new buyer New Residential Investment managed by an affiliate of investment group Fortress will pay about $980 million for the assets. This allows Citi to focus on the basics of mortgage banking.
About New Residential Investment
New Residential Investment Corp. (NYSE: NRZ) is a publicly traded real estate investment trust (“REIT”) that focuses on investing in, and actively managing, investments primarily related to residential real estate. We aim to drive strong risk-adjusted returns primarily through investments in (i) Excess Mortgage Servicing Rights (“MSRs”), (ii) Servicer Advances, (iii) non-Agency residential mortgage backed securities (“RMBS”) and associated call rights.
Our objective is to leverage our proven investment expertise to deliver attractive returns that will help drive strong and growing dividends to our shareholders. We target assets that generate stable long term cash flows and employ conservative capital structures to generate returns throughout different interest rate environments.
Visit: New Residential Investment
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