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.
In addition, this press release may contain statements of opinion or belief concerning market conditions and similar
matters. In certain instances, those opinions and beliefs could be based upon general observations by members of our
management, anecdotal evidence and/or our experience in the conduct of our business, without specific investigation or
statistical analyses. Therefore, while such statements reflect our view of the industries and markets in which we are involved,
they should not be viewed as reflecting verifiable views and such views may not be shared by all who are involved in those
industries or markets.
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SOURCE Walter Investment Management Corp.