New Residential Investment Corp. and Altisource Portfolio Solutions have entered into an eight-year cooperative brokerage agreement whereby Altisource’s real estate brokerage subsidiaries will exclusively provide marketing and listing services for real estate owned (REO) properties included in certain portfolios of mortgage loans for which New Residential has acquired, or will acquire, the mortgage servicing rights (MSRs).
The MSR portfolios covered by the agreement include an approximately $110 billion unpaid principal balance, non-agency MSR portfolio that New Residential agreed to acquire from subsidiaries of Ocwen Financial Corp. in July 2017 and an approximately $6 billion UPB non-agency MSR portfolio that New Residential agreed to acquire from subsidiaries of PHH Corp. in December 2016.
Altisource’s licensed real estate brokerage subsidiaries will begin to receive REO referrals under the agreement as the MSR portfolios transfer to New Residential, and New Residential’s licensed real estate brokerage subsidiary will receive a referral commission for each REO sold by Altisource on its behalf.
“We are pleased to announce this new partnership with Altisource,” says Michael Nierenberg, chairman and CEO of New Residential. “By leveraging Altisource’s suite of mortgage and real estate services, we aim to maximize returns for investors in the underlying loans and improve the performance of our MSR portfolio.”