New Household Investment decision Corp. to Receive Caliber Household Loans, Inc.

NEW YORK–(Business WIRE)–New Residential Financial commitment Corp. (NYSE: NRZ “New Residential” or the “Company”) declared currently that it has entered into a definitive arrangement with an affiliate of Lone Star Money (“Lone Star”) to get Caliber Home Financial loans, Inc. (“Caliber”). With this acquisition, New Household intends to deliver jointly the platforms of Caliber and NewRez LLC (“NewRez”), New Residential’s wholly owned home loan originator and servicer. The transaction is meant to near as promptly as probable, topic to a variety of approvals and customary closing ailments, and is qualified for the third quarter of 2021.

“We believe this is a great acquisition for our Company,” mentioned Michael Nierenberg, Chairman, Main Executive Officer and President of New Residential. “Over the many years, Caliber’s skilled staff has developed a differentiated purchase-targeted originator with an amazing retail franchise and solid track history in purchaser retention. The mixture of NewRez and Caliber’s platforms will generate a premier economical solutions organization with scale, expertise, systems and goods to accelerate our mortgage business aims and make potent earnings for our shareholders. With this acquisition, we have considerably strengthened our capabilities to execute across interest rate environments.”

“We are enthusiastic to be joining the New Residential spouse and children,” claimed Sanjiv Das, Chief Government Officer of Caliber. “By combining platforms with NewRez, we will sign up for one more market pioneer that has complementary strengths and is dedicated to offering the aspiration of homeownership. Our mix of methods will permit us to accelerate our top situation in obtain lending, increase our electronic direct to purchaser and broker initiatives, and further more propel our retail franchise. As we leverage our digitization investments, we will make the total home finance loan course of action a lot quicker, simpler and much more economical. We are thrilled to have the chance to deepen our customer associations, broaden our consumer access and supply a lot more marketplace-primary goods and choices to our shoppers.”

“This transaction is yet a different important milestone for NewRez as we go on to expand our small business, develop our shopper attain and supply additional selections to assist our house owners and purchasers,” mentioned Baron Silverstein, President of NewRez. “Combining with Caliber’s platform emphasizes our commitment to positioning our enterprise for long-time period achievements even though continuing to produce sizeable value for our prospects, our companions and our personnel.”

Transaction Highlights

The mix of platforms is supposed to deliver collectively two complementary leading house loan approaches with deep commitments to the borrowers they serve.

• The acquisition is expected to:
  • Improve and bolster earnings profile throughout amount environments
  • Broaden shopper retention efforts with field leading recapture platform
  • Enhance invest in origination abilities with extensive dispersed retail system
  • Insert to New Residential’s asset base with appealing portfolio of MSRs
  • Increase New Residential’s asset era abilities and opportunities
  • Provide expertise, scale and ability to support growth
  • Strengthen systems to guidance shopper working experience and staff performance
  • Speed up New Residential’s house loan platform goals
  • Be accretive in the first whole calendar 12 months next the close of the acquisition²

Caliber Highlights

• Leader in the big and growing United States property finance loan market place
• $80 billion UPB of funded origination quantity in 2020
• $153 billion UPB servicing portfolio with about 630,000 shoppers as of December 31, 2020
• Recapture level of 54% demonstrates strength of Caliber’s built-in property finance loan platform
• Wide dispersed retail platform with comprehensive area footprint across the United States
• Proven track report of acquire origination quantity and profitability across charge environments
• 2020 Pre-Tax Income of $891 million and return on equity of 53%
• Interesting earnings performance and monetary profile

Transaction Particulars

Less than the conditions of the arrangement, which have been unanimously authorised by New Residential’s board of administrators, New Residential will pay out a cash thought of $1.675 billion, or somewhere around 1.0x anticipated tangible ebook price at closing¹, to receive Caliber.

Financing

New Residential intends to finance the acquisition by a blend of existing dollars and accessible liquidity on the New Household and Caliber merged harmony sheet as properly as a mix of equity and the sale of sure investment securities.

Advisors

Citigroup Global Markets Inc. and Goldman Sachs & Co. acted as economic advisors to New Household and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to New Household. Credit rating Suisse Securities (United states of america) LLC and Barclays acted as fiscal advisors to Lone Star and Caliber and Mayer Brown LLP acted as legal advisor to Lone Star and Caliber.

Trader Connect with Aspects

New Residential will host a meeting simply call at 8:00 A.M. Japanese Time on Wednesday, April 14, 2021 to examine the acquisition. A supplemental presentation discussing the acquisition is readily available at newresi.com/investors. The meeting connect with may be accessed by dialing 1-866-777-2509 (from inside of the U.S.) or 1-412-317-5413 (from exterior of the U.S.) ten minutes prior to the scheduled start off of the simply call be sure to reference “New Residential Acquisition Call.” In addition, participants are encouraged to pre-sign-up for the meeting get in touch with at https://dpregister.com/sreg/10154271/e6332ce6a8. A simultaneous webcast of the meeting contact will be obtainable to the community on a hear-only foundation at www.newresi.com. Make sure you allow for extra time prior to the call to visit the website and obtain any vital software package expected to hear to the web broadcast.

This push release does not represent an offer to provide or the solicitation of an provide to get shares of popular inventory, nor shall there be any sale of these securities in any jurisdiction in which such supply, solicitation or sale would be unlawful prior to registration or qualification underneath the securities regulations of any this sort of jurisdiction.

ABOUT NEW Residential

New Household is a leading service provider of funds and products and services to the mortgage and money providers sector. The Company’s mission is to generate eye-catching chance-altered returns in all interest fee environments via a portfolio of investments and operating organizations. New Residential has built a diversified, hard-to-replicate portfolio with large-high-quality investment tactics that have produced returns across different fascination price environments above time. New Residential’s portfolio is composed of property finance loan servicing related belongings (such as investments in working entities consisting of servicing, origination, and affiliated organizations), household securities (and connected called legal rights) and financial loans, and customer loans. New Residential’s investments in functioning entities involve its mortgage loan origination and servicing subsidiary, NewRez, and its specific servicing division, Shellpoint Mortgage Servicing, as nicely as investments in affiliated corporations that supply companies that are complementary to the origination and servicing firms and other portfolios of mortgage related property. Due to the fact inception in 2013, New Household has a established track report of performance, expanding and shielding the value of its belongings although creating beautiful chance-modified returns and delivering more than $3.6 billion in dividends to shareholders. New Household is arranged and conducts its functions to qualify as a actual estate expenditure have faith in (REIT) for federal money tax purposes. New Residential is managed by an affiliate of Fortress Investment decision Team LLC, a world wide financial investment administration agency, and headquartered in New York Town.

ABOUT NEWREZ

NewRez is a top nationwide house loan financial institution and servicer. As a loan company, NewRez focuses on supplying a breadth of market-primary merchandise, supported by a loan method that blends both human interaction and the gains of technological know-how into an unparalleled customer practical experience. Founded in 2008 and accredited to lend in 50 states, NewRez is headquartered in Fort Washington, Pennsylvania and operates various lending channels, like Immediate to Customer, Joint Enterprise, Wholesale and Correspondent. The servicing enterprise operates as a result of NewRez Servicing, the doing bank loan servicing division, Shellpoint House loan Servicing, the exclusive servicing division. NewRez also has numerous affiliates that execute various solutions in the mortgage and true estate industries. These contain Avenue 365 Loan provider Solutions, LLC, a title agency, and eStreet Appraisal Administration LLC, an appraisal administration firm. NewRez is member of the New Household family members.

ABOUT CALIBER

Caliber is a established leader in the U.S. property finance loan marketplace with a diversified, client-centric, purchase-centered platform with headquarters in Coppell, Texas. Caliber is an permitted Seller/Servicer for both equally Fannie Mae and Freddie Mac, an accredited issuer for Ginnie Mae and is an accredited servicer for FHA, VA and the USDA. Caliber carries many servicer ratings from Regular & Poor’s, Moody’s, Fitch and DBRS.

Ahead-Wanting STATEMENTS

Sure data in this press release constitutes “forward-looking statements” within the meaning of the Non-public Securities Litigation Reform Act of 1995, such as, but not constrained to, (i) statements relating to the Transaction, including the capability to receive all expected approvals and consummate the Transaction on a timely basis or at all, (ii) Caliber’s potential general performance, which includes its ability to increase, and (iii) statements relating to Caliber’s impact on the Firm’s enterprise and long term efficiency. These statements are not historical info. They signify management’s present-day expectations pertaining to long run situations and are subject to a variety of developments and uncertainties, several of which are beyond our manage, which could result in precise results to vary materially from all those explained in the ahead-wanting statements. Appropriately, you need to not put undue reliance on any forward-wanting statements contained herein.

For a dialogue of some of the threats and critical components that could affect this kind of forward-on the lookout statements, see the sections entitled “Cautionary Statements Pertaining to Ahead Wanting Statements,” “Risk Factors” and “Management’s Discussion and Investigation of Monetary Issue and Outcomes of Operations” in the Company’s most modern yearly and quarterly reports and other filings submitted with the U.S. Securities and Exchange Fee, which are available on the Company’s internet site (www.newresi.com). New challenges and uncertainties emerge from time to time, and it is not attainable for New Residential to forecast or assess the impact of every issue that might result in its real results to vary from people contained in any ahead-looking statements. Forward-looking statements contained herein discuss only as of the day of this push launch, and New Residential expressly disclaims any obligation to release publicly any updates or revisions to any forward-searching statements contained herein to replicate any improve in New Residential’s anticipations with regard thereto or modify in occasions, situations or situation on which any statement is based.

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¹ Based on approximated closing tangible ebook benefit at September 30, 2021, matter to specific downward adjustments.

² Refers to projected 2022 Return on Fairness.