New Residential Investment Corp., a REIT, and Altisource Portfolio Solutions S.A., an integrated service provider and marketplace for the real estate and mortgage industries, recently revealed that the two companies have entered into an eight-year cooperative brokerage agreement where Altisource’s licensed real estate brokerage subsidiaries will exclusively provide marketing and listing services for real estate owned properties included in certain portfolios of mortgage loans for which New Residential has acquired, or will acquire, the mortgage servicing rights.
The MSR portfolios covered by the agreement include an approximately $110 billion UPB non-agency MSR portfolio that New Residential agreed to acquire from certain subsidiaries of Ocwen Financial Corporation in July 2017 and an approximately $6 billion UPB non-agency MSR portfolio that New Residential agreed to acquire from certain subsidiaries of PHH Corporation in December 2016.
Altisource’s licensed real estate brokerage subsidiaries will begin to receive REO referrals under the agreement as the MSR portfolios transfer to New Residential. New Residential’s licensed real estate brokerage subsidiary will receive a referral commission for each REO sold by Altisource on its behalf, according to a prepared statement.
The agreement includes termination events, vendor oversight and audit rights and reporting requirements, and provisions designed to ensure pricing for REO marketing and listing services remains competitive throughout the term of the contract.
In addition to the Cooperative Brokerage Agreement, New Residential and Altisource have entered into a letter of intent pursuant to which New Residential and Altisource agreed to negotiate, in good faith, a definitive services agreement under which Altisource would be the exclusive provider of certain fee-based services with respect to the Ocwen Portfolio. Pursuant to the letter of intent, New Residential and Altisource have also committed to work together to seek further opportunities to expand their relationship.
“We are pleased to announce this new partnership with Altisource. By leveraging Altisource’s suite of mortgage and real estate services, we aim to maximize returns for investors in the underlying loans and improve the performance of our MSR portfolio,” says Michael Nierenberg, Chairman and Chief Executive Officer of New Residential. “We believe this is a mutually beneficial partnership and we look forward to working closely with Altisource.”
William B. Shepro, Chief Executive Officer of Altisource commented, “I am very pleased to establish a relationship with New Residential, one of the largest and most active mortgage servicing rights owners in the industry. These agreements strengthen Altisource’s existing position as a leading provider of services to the mortgage industry, provide greater visibility into Altisource’s revenue and earnings from the Ocwen Portfolio and provide a great opportunity to develop and grow relationships.”