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This statistic highlights New Residential’s Revenue by Segment, split across Consumer Loans, MSR related investments, Mortgage loans receivable, Origination, Real estate securities, Residential mortgage loans, and Servicing, reported on a quarterly basis from Q2 2019 onwards.
|Revenue by Segment||Q4 2020||Q3 2021||Q4 2021||Contribution in Q4 2021|
|MSR related investments||-$106.53||$38.04||-$384.64||-48.89%|
|Mortgage loans receivable||$0.00||$0.00||$4.22||0.54%|
|Real estate securities||$63.82||$67.77||$38.53||4.90%|
|Residential mortgage loans||$40.12||$46.51||$29.39||3.74%|
(All figures in millions, except percentages)
The total revenue generated from all of the segments decreased by 12.43% quarterly, from $898.31 million in Q3 2021 to $786.69 million in Q4 2021. The revenue increased by 28% yearly, from $614.56 million in Q4 2020 to $786.69 million in Q4 2021.
The revenue decreased by 8.67% quarterly, from $22.71 million in Q3 2021 to $20.74 million in Q4 2021. On a year-on-year basis, the fall in revenue was 24.06%, as compared to $27.31 million in Q4 2020.
MSR related investments
In exchange for a share of the interest payments made on the underlying residential mortgage loans, an MSR gives a mortgage servicer the right to service a pool of residential mortgage loans. This sum varies between 25 and 50 basis points of the UPB of residential mortgage loans, plus auxiliary income and custodial interest. An MSR consists of a basic charge and an additional MSR.
The investments made amounted to $106.53 million in Q4 2020, which is why predominantly short-term mortgage loans portfolio this investment was $38.04 million in Q3 2021. It decreased from negative $106.53 million in Q4 2020 to negative $384.64 million in Q4 2021, making a decline of 261% on a yearly basis. When compared on a quarterly basis, it witnessed a massive decline of 1,111%, as compared to $38.04 million in Q3 2021.
Mortgage loans receivable
It specializes in originating and managing a portfolio of predominantly short-term mortgage loans to fund single-family and multi-family real estate developers with construction, rehabilitation, and bridge loans through its wholly-owned subsidiary Genesis.
In Q4 2020 and Q3 2021, this segment generated no revenue. The mortgage loan receivable amounted to $4.22 million in Q4 2021 which represented a 0.54% contribution to total revenue in that quarter.
The lending divisions of subsidiaries Newrez LLC and Caliber Home Loans Inc. handle the origination business. The Mortgage Company is currently one of the largest non-bank mortgage originators in the United States.
The revenue increased 13.98% quarterly, from $559.14 million in Q3 2021 to $637.33 million in Q4 2021. The year-on-year growth was 52.02% when compared to Q4 2020, where the revenue generated was $419.23 million.
Real Estate Securities
The revenue generated from real estate securities segment has decreased 43.15% quarterly, from $67.77 million in Q3 2021 to $38.53 million in Q4 2021. The revenue increased 6.19% yearly, from $63.82 million in Q4 2020 to $67.77 million in Q3 2021.
Residential Mortgage Loans
Residential mortgage loans are frequently pooled Compared to PLS and Non-Agency investments, Agency RMBS generally provides more steady cash flows and hashes or guarantees Agency RMBS.
The revenue generated from the segment has decreased 36.81% quarterly, from $46.51 million in Q3 2021 to $29.39 million in Q4 2021. The revenue increased 15.93% yearly, as compared to $40.12 million in Q4 2020.
Shellpoint Mortgage Servicing (“SMS”) is a specific servicing section of the servicing business that specializes in executing loan servicing.
The revenue generated from servicing segment increased 158.55% yearly, from $170.61 million in Q4 2020 to $441.12 million in Q4 2021. Quarterly, the revenue saw an increment of 168.75%, as compared to $164.14 million in Q3 2021.
New Residential Investment Corp. is a mortgage investment management that operates on a vertically integrated platform. For federal income tax reasons, the corporation is structured as a real estate investment trust (“REIT”). The company’s goal is to provide long-term value to its investors by identifying, managing, and investing in mortgage-related assets, such as operating companies, that provide attractive risk-adjusted returns. The company’s investment strategy also includes pursuing acquisitions on the cheap and forming strategic partnerships that it believes will help it maximize the value of the mortgage loans it originates and/or services by providing products and services to customers, services, and other parties throughout the lifecycle of transactions that affect each mortgage loan and the underlying residential property or collateral.
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