TAMPA, Fla., Nov. 16, 2016 /PRNewswire/ -- Walter Investment Management Corp. (NYSE: WAC) ("Walter Investment" or the "Company") today announced that certain affiliated subsidiaries of Walter Capital Opportunity Corp. (collectively, "WCO") have executed a mortgage servicing right ("MSR") purchase and sale agreement (the "MSRPSA") with New Residential Mortgage LLC ("NRM"), a wholly-owned subsidiary of New Residential Investment Corp. (NYSE: NRZ), pursuant to which, among other things, WCO has agreed to sell to NRM MSRs relating to mortgage loans with an unpaid principal balance of approximately $10 billion (the "WCO MSRs") and that are sub-serviced by Walter Investment's wholly-owned indirect subsidiary, Ditech Financial LLC ("Ditech"). The WCO MSRs represent substantially all of WCO's MSR portfolio.
As previously announced, in a series of transactions relating to the sale of the WCO MSRs, NRM is expected to acquire from Ditech MSRs relating to mortgage loans with an unpaid principal balance of approximately $24 billion (the "Ditech MSRs") in connection with the sale by WCO of substantially all of its remaining assets, including excess servicing spread on the Ditech MSRs, which excess servicing spread was previously purchased by WCO from Ditech. The transactions relating to the sale by WCO of substantially all of its assets, including the sale of the Ditech MSRs, are expected to generate approximately $90 million in near-term cash proceeds for the Company.
In addition, it is expected that Ditech will sub-service, on behalf of, and under its existing sub-servicing agreement with, NRM, both the WCO MSRs and Ditech MSRs following the closing of the transactions contemplated in the MSRPSA and the related transaction documents, which transactions remain subject to various closing conditions, including government-sponsored entity approval.
"As I recently discussed on our third quarter earnings call, Walter Investment's leadership team is focused on taking actions to enable achievement of our business goals, and to that end we are pleased to announce the execution of the MSRPSA, which represents an important milestone with respect to the sale of substantially all of WCO's assets and the Company's goal of strengthening its balance sheet," said Anthony N. Renzi, Walter Investment's Chief Executive Officer and President.
About Walter Investment Management Corp.
Walter Investment Management Corp. is a diversified mortgage banking firm focused primarily on the servicing and origination of residential loans, including reverse loans. Based in Tampa, Fla., the Company has approximately 5,000 employees and services a diverse loan portfolio. For more information about Walter Investment Management Corp., please visit the Company's website at www.walterinvestment.com. The information on our website is not a part of this release.
Disclaimer and Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not historical fact are forward-looking statements. Certain of these forward-looking statements can be identified by the use of words such as "believes," "anticipates," "expects," "intends," "plans," "projects," "estimates," "assumes," "may," "should," "will," "seeks," "targets," or other similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors, and our actual results, performance or achievements could differ materially from future results, performance or achievements expressed in these forward-looking statements. These forward-looking statements are based on our current beliefs, intentions and expectations. These statements are not guarantees or indicative of future performance. Important assumptions and other important factors that could cause actual results to differ materially from those forward-looking statements include, but are not limited to, those factors, risks and uncertainties described under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2015 and in our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2016, June 30, 2016 and September 30, 2016, and in our other filings with the Securities and Exchange Commission.
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SOURCE Walter Investment Management Corp.