Michael Nierenberg and excess mortgage servicing rights

Over the years, Michael Nierenberg has been deeply invested in excess mortgage servicing rights. He’s come up with harrowing feats of groundbreaking work and leadership as a powerful name in the residential mortgage loan investment market by way of his position as the board chairman, president and CEO of New Residential Investment Corp.

Usually, Investment managers have to seek out assets that aren’t worth as much. Long-term connections with companies are essential to an MSR and New Residential went and acquired roughly $114 billion worth of MSRs.

Given the benefits such as the potential to generate an incredible amount of money and the difficulty to replicate MSR assets and their limitations which include fragile business connections hindering MSRs, an experienced mind would be required. Cue Michael Nierenberg. He has constantly been on the search for inventive ways to keep the residential financing market thrilling with New Residential Investment Corp.

Investors have typically avoided residential mortgage-backed securities given their problems such as changes in interest rate and trouble with assets but Michael Nierenberg has been advantageous in his approach to them.

Given the five great obstacles that RMBS investment can present, never is it a simple task to handle each and every situation. Regardless of this though, New Residential has managed to come up with a few ways to combat those difficulties. Maintaining an active portfolio is key to helping resolve these issues. This helps to brace for unforeseen circumstances, being forced to buy assets from some investors, shifting portfolio and restricting investments at the right time.

Michael Nierenberg has made leaps and bounds in his financial career when taking advantage of opportunities in investments and applying his deep understanding of residential mortgages. During his tenure at Merrill Lynch, he was known as one of the most talented and respected people in the business of mortgage. From 2013, he held his position as CEO and President of New Residential Investment Corp and Chairman of the board from 2016.

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