Here's Why New Residential Will Benefit From Higher Rates
With interest rates rising, the economic backdrop for mortgage real estate investment trusts (REITs) and mortgage originators is becoming more challenging. Rising rates mean less origination business as refinances dwindle, and mortgage-backed securities are under a cloud as the Federal Reserve reduces its buying.
That said, not all REITs and originators are the same, and some have set themselves up to take advantage of this environment. New Residential Investment (NYSE: NRZ) has done exactly that via an unusual asset called mortgage servicing.
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Source Fool.com
