New Residential (NYSE:NRZ) agrees to buy about $72B UPB of seasoned agency and private-label MBS from PHH Corp. (NYSE:PHH) for roughly $612M. Alongside, NRZ will buy about $300M of servicer advances from PHH.
Also part of the deal, PHH will subservice the mortgages (480K of them) underlying the purchased MSRs for an initial period of three years.
The deal is expected to close in H1.
For PHH's part, it sold the MSRs for about 84 basis points of the UPB, and the $912M in proceeds will be used to pay down debt. The deal rids PHH of its remaining MSR portfolio. The company continues to study strategic options, and expects to have something to present to investors by the end of January.
NRZ +0.4%, PHH +1.5% after hours
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