Walter Investment Management (WAC) Unit Executes MSRPSA with NRM
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Walter Investment Management Corp. (NYSE: WAC) announced that certain affiliated subsidiaries of Walter Capital Opportunity Corp. (collectively, "WCO") have executed a mortgage servicing right ("MSR") purchase and sale agreement (the "MSRPSA") with New Residential Mortgage LLC ("NRM"), a wholly-owned subsidiary of New Residential Investment Corp. (NYSE: NRZ), pursuant to which, among other things, WCO has agreed to sell to NRM MSRs relating to mortgage loans with an unpaid principal balance of approximately $10 billion (the "WCO MSRs") and that are sub-serviced by Walter Investment's wholly-owned indirect subsidiary, Ditech Financial LLC ("Ditech"). The WCO MSRs represent substantially all of WCO's MSR portfolio.
As previously announced, in a series of transactions relating to the sale of the WCO MSRs, NRM is expected to acquire from Ditech MSRs relating to mortgage loans with an unpaid principal balance of approximately $24 billion (the "Ditech MSRs") in connection with the sale by WCO of substantially all of its remaining assets, including excess servicing spread on the Ditech MSRs, which excess servicing spread was previously purchased by WCO from Ditech. The transactions relating to the sale by WCO of substantially all of its assets, including the sale of the Ditech MSRs, are expected to generate approximately $90 million in near-term cash proceeds for the Company.
In addition, it is expected that Ditech will sub-service, on behalf of, and under its existing sub-servicing agreement with, NRM, both the WCO MSRs and Ditech MSRs following the closing of the transactions contemplated in the MSRPSA and the related transaction documents, which transactions remain subject to various closing conditions, including government-sponsored entity approval.
"As I recently discussed on our third quarter earnings call, Walter Investment's leadership team is focused on taking actions to enable achievement of our business goals, and to that end we are pleased to announce the execution of the MSRPSA, which represents an important milestone with respect to the sale of substantially all of WCO's assets and the Company's goal of strengthening its balance sheet," said Anthony N. Renzi, Walter Investment's Chief Executive Officer and President.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- B&G Foods (BGS) Acquires Victoria Fine Foods for $70M
- Pandora (P) Advisers Said to Begin Reaching Out to Possible Suitors Following Approach from Sirius (SIRI) - Bloomberg
- Allergan (AGN) Updates on ASR Program; ~$8B of Shares Received, Retired in Nov.
Create E-mail Alert Related CategoriesCorporate News, Management Comments, Mergers and Acquisitions
Related EntitiesEarnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!