New Residential Bolsters Its Mortgage Offerings With Fix-and-Flip Lender
While 2020 was a banner year for the mortgage industry, 2021 is turning out to be a lot more competitive. We have seen profit margins decline as more lenders compete for business. During this time, New Residential Investment (NYSE: NRZ) has been acquiring smaller lenders and building its footprint in the mortgage business. This move will help insulate the company from an impending change in Federal Reserve monetary policy.
New Residential has historically been thought of as a mortgage real estate investment trust (REIT). These REITs are a bit different than a typical REIT that develops property. Mortgage REITs invest in real estate debt (in other words, mortgages) and earn interest instead of rent. New Residential also originates mortgages, and it has been building that arm of its business.
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Source Fool.com
