“As we look ahead in 2022, we are extremely well-positioned to benefit from the current rate environment given our large portfolio of MSRs and our complimentary operating businesses, which should help drive earnings and book value higher,” New Residential CEO and president Michael Nierenberg said.
The real estate giant’s mortgage origination business saw a pre-tax income of $101.5 million in Q4, down from $177.5 million in Q3. The segment funded $38.1 billion in unpaid principal balance (UPB) during the fourth quarter.
Meanwhile, its servicing portfolio grew to $483 billion in UPB, up by 1.5% quarter over quarter. As a result, segment pre-tax income increased to $127.5 million in Q4 from just $15 million in Q3. The firm’s MSR portfolio totaled roughly $629 billion UPB in the fourth quarter, down slightly from $635 billion in the previous quarter.
Additionally, New Residential expanded its single-family rental portfolio by approximately 675 units and acquired $196 million of non-QM and investor loans.