NRZ - Could New Residential Unlock Value by Splitting Off Its Mortgage Operations?
These have been trying times for mortgage real estate investment trusts (REITs). Nearly all of them were forced to sell assets at reduced prices in an illiquid market this spring. All reported big declines in book value per share and dividend decreases. And some embarked on wholesale business changes.
New Residential Investment Corp. (NYSE: NRZ) was one of them, but that's not the only change investors should consider now. New Residential was known for non-guaranteed mortgages, but it made a switch to focus on mortgages guaranteed by the government. At the same time, we have some interesting new perspective on its mortgage origination and servicing business thanks to a few recent initial public offerings in the industry. Add it all up and New Residential becomes an interesting sum-of-the-parts story.
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Could New Residential Unlock Value by Splitting Off Its Mortgage Operations?