New Household Expense Corp. to Obtain Caliber Household Financial loans, Inc.

NEW YORK–(Enterprise WIRE)–New Residential Expense Corp. (NYSE: NRZ “New Residential” or the “Company”) introduced now that it has entered into a definitive agreement with an affiliate of Lone Star Resources (“Lone Star”) to receive Caliber Home Loans, Inc. (“Caliber”). With this acquisition, New Residential intends to bring alongside one another the platforms of Caliber and NewRez LLC (“NewRez”), New Residential’s wholly owned home finance loan originator and servicer. The transaction is meant to near as swiftly as feasible, issue to several approvals and customary closing disorders, and is focused for the third quarter of 2021.

“We consider this is a fantastic acquisition for our Firm,” said Michael Nierenberg, Chairman, Chief Govt Officer and President of New Residential. “Over the a long time, Caliber’s skilled group has developed a differentiated invest in-focused originator with an amazing retail franchise and strong observe history in purchaser retention. The combination of NewRez and Caliber’s platforms will make a premier money services firm with scale, talent, systems and products to speed up our mortgage enterprise targets and generate strong earnings for our shareholders. With this acquisition, we have appreciably strengthened our capabilities to complete across fascination level environments.”

“We are thrilled to be becoming a member of the New Household family members,” said Sanjiv Das, Main Executive Officer of Caliber. “By combining platforms with NewRez, we will sign up for an additional field pioneer that has complementary strengths and is fully commited to delivering the dream of homeownership. Our blend of techniques will let us to accelerate our foremost placement in acquire lending, improve our digital direct to client and broker initiatives, and further more propel our retail franchise. As we leverage our digitization investments, we will make the complete house loan system a lot quicker, simpler and additional efficient. We are thrilled to have the opportunity to deepen our buyer interactions, increase our buyer reach and present additional field-main items and alternatives to our shoppers.”

“This transaction is yet a different crucial milestone for NewRez as we carry on to grow our enterprise, mature our shopper achieve and supply far more options to support our householders and consumers,” said Baron Silverstein, President of NewRez. “Combining with Caliber’s system emphasizes our dedication to positioning our company for extended-expression achievements although continuing to supply significant price for our buyers, our associates and our workforce.”

Transaction Highlights

The combination of platforms is meant to convey with each other two complementary leading mortgage methods with deep commitments to the borrowers they provide.

• The acquisition is predicted to:
  • Increase and fortify earnings profile throughout amount environments
  • Broaden client retention attempts with industry primary recapture system
  • Enhance buy origination abilities with intensive dispersed retail platform
  • Insert to New Residential’s asset base with attractive portfolio of MSRs
  • Maximize New Residential’s asset technology capabilities and options
  • Deliver talent, scale and potential to assist expansion
  • Enhance technologies to guidance shopper encounter and staff efficiency
  • Accelerate New Residential’s home finance loan platform targets
  • Be accretive in the initially entire calendar 12 months adhering to the shut of the acquisition²

Caliber Highlights

• Chief in the big and growing United States home finance loan sector
• $80 billion UPB of funded origination volume in 2020
• $153 billion UPB servicing portfolio with roughly 630,000 customers as of December 31, 2020
• Recapture level of 54% demonstrates toughness of Caliber’s integrated home finance loan system
• Wide dispersed retail system with in depth neighborhood footprint throughout the United States
• Tested keep track of file of order origination volume and profitability across level environments
• 2020 Pre-Tax Earnings of $891 million and return on equity of 53%
• Eye-catching earnings efficiency and economical profile

Transaction Aspects

Less than the phrases of the agreement, which have been unanimously accredited by New Residential’s board of administrators, New Household will pay out a money thought of $1.675 billion, or close to 1.0x envisioned tangible book price at closing¹, to purchase Caliber.

Financing

New Household intends to finance the acquisition as a result of a blend of existing cash and available liquidity on the New Residential and Caliber merged balance sheet as well as a mix of fairness and the sale of specific investment securities.

Advisors

Citigroup International Markets Inc. and Goldman Sachs & Co. acted as money advisors to New Residential and Skadden, Arps, Slate, Meagher & Flom LLP acted as lawful advisor to New Household. Credit history Suisse Securities (United states) LLC and Barclays acted as financial advisors to Lone Star and Caliber and Mayer Brown LLP acted as authorized advisor to Lone Star and Caliber.

Trader Get in touch with Details

New Household will host a conference get in touch with at 8:00 A.M. Eastern Time on Wednesday, April 14, 2021 to examine the acquisition. A supplemental presentation speaking about the acquisition is obtainable at newresi.com/traders. The conference get in touch with may be accessed by dialing 1-866-777-2509 (from inside the U.S.) or 1-412-317-5413 (from exterior of the U.S.) 10 minutes prior to the scheduled get started of the contact please reference “New Household Acquisition Get in touch with.” In addition, individuals are encouraged to pre-register for the conference phone at https://dpregister.com/sreg/10154271/e6332ce6a8. A simultaneous webcast of the convention contact will be offered to the general public on a hear-only foundation at www.newresi.com. Make sure you permit extra time prior to the phone to take a look at the web site and obtain any essential software package essential to pay attention to the online broadcast.

This press release does not constitute an offer to promote or the solicitation of an present to get shares of widespread inventory, nor shall there be any sale of these securities in any jurisdiction in which this sort of offer, solicitation or sale would be illegal prior to registration or qualification underneath the securities regulations of any these types of jurisdiction.

ABOUT NEW Residential

New Residential is a main company of capital and expert services to the property finance loan and fiscal companies marketplace. The Company’s mission is to make eye-catching hazard-modified returns in all desire level environments through a portfolio of investments and functioning organizations. New Household has constructed a diversified, really hard-to-replicate portfolio with large-good quality investment methods that have generated returns across distinct curiosity charge environments in excess of time. New Residential’s portfolio is composed of home finance loan servicing linked belongings (like investments in operating entities consisting of servicing, origination, and affiliated corporations), residential securities (and connected termed rights) and financial loans, and purchaser loans. New Residential’s investments in running entities incorporate its home loan origination and servicing subsidiary, NewRez, and its exclusive servicing division, Shellpoint Property finance loan Servicing, as well as investments in affiliated companies that provide companies that are complementary to the origination and servicing firms and other portfolios of home loan connected property. Considering the fact that inception in 2013, New Household has a proven track record of performance, escalating and defending the price of its assets though generating interesting hazard-adjusted returns and providing over $3.6 billion in dividends to shareholders. New Household is organized and conducts its operations to qualify as a real estate financial commitment rely on (REIT) for federal money tax applications. New Household is managed by an affiliate of Fortress Expenditure Group LLC, a worldwide expenditure management business, and headquartered in New York City.

ABOUT NEWREZ

NewRez is a primary nationwide mortgage loan company and servicer. As a lender, NewRez focuses on featuring a breadth of sector-top products and solutions, supported by a loan course of action that blends each human conversation and the benefits of technologies into an unparalleled consumer working experience. Founded in 2008 and accredited to lend in 50 states, NewRez is headquartered in Fort Washington, Pennsylvania and operates a number of lending channels, such as Direct to Buyer, Joint Venture, Wholesale and Correspondent. The servicing company operates via NewRez Servicing, the carrying out bank loan servicing division, Shellpoint Mortgage loan Servicing, the exclusive servicing division. NewRez also has many affiliates that carry out many expert services in the home loan and serious estate industries. These involve Avenue 365 Lender Expert services, LLC, a title company, and eStreet Appraisal Administration LLC, an appraisal administration organization. NewRez is member of the New Household household.

ABOUT CALIBER

Caliber is a verified chief in the U.S. home finance loan market place with a diversified, shopper-centric, purchase-targeted system with headquarters in Coppell, Texas. Caliber is an approved Vendor/Servicer for the two Fannie Mae and Freddie Mac, an authorized issuer for Ginnie Mae and is an authorized servicer for FHA, VA and the USDA. Caliber carries various servicer rankings from Typical & Poor’s, Moody’s, Fitch and DBRS.

Ahead-Wanting STATEMENTS

Specified info in this press release constitutes “forward-looking statements” inside of the meaning of the Personal Securities Litigation Reform Act of 1995, together with, but not constrained to, (i) statements regarding the Transaction, which includes the capacity to attain all necessary approvals and consummate the Transaction on a timely basis or at all, (ii) Caliber’s upcoming functionality, which include its capacity to develop, and (iii) statements about Caliber’s effect on the Company’s business enterprise and long run performance. These statements are not historical details. They represent management’s current expectations relating to future gatherings and are subject to a range of tendencies and uncertainties, several of which are outside of our command, which could trigger genuine effects to differ materially from individuals explained in the ahead-seeking statements. Accordingly, you should really not position undue reliance on any forward-searching statements contained herein.

For a discussion of some of the challenges and vital elements that could impact these kinds of forward-searching statements, see the sections entitled “Cautionary Statements Regarding Ahead On the lookout Statements,” “Risk Factors” and “Management’s Dialogue and Evaluation of Fiscal Condition and Final results of Operations” in the Company’s most latest yearly and quarterly reports and other filings submitted with the U.S. Securities and Exchange Commission, which are available on the Company’s web site (www.newresi.com). New challenges and uncertainties emerge from time to time, and it is not probable for New Household to forecast or evaluate the influence of each and every issue that may cause its precise success to differ from these contained in any ahead-searching statements. Forward-hunting statements contained herein talk only as of the date of this press launch, and New Residential expressly disclaims any obligation to release publicly any updates or revisions to any ahead-on the lookout statements contained herein to replicate any improve in New Residential’s expectations with regard thereto or alter in events, conditions or circumstances on which any assertion is dependent.

¹ Primarily based on approximated closing tangible e book value at September 30, 2021, subject matter to selected downward changes.

² Refers to projected 2022 Return on Fairness.