To take advantage of the unique investment opportunities being created in the world of real estate investment trusts, a financial services company must have intuitive leaders to bring them up to par. Whatever blend of industry insight, flexible capital, and fundamental business relationships a trust uses, these ingredients are essential to take advantage of the opportunities associated with residential mortgage loans. One company that is leveraging their blend of capitol, industry intuition, and pivotal business relationships to uncover niche opportunities is New Residential Investment Corp. Based out of New York, New York, New Residential is led by one of the best executive teams in the business.
New Residential focuses on investments in: excess mortgage servicing rights; residential mortgage backed securities; residential mortgage loans and other opportunistic investments. And anyone in dealing in such securities will tell you that constant vigilance and natural instincts are needed to succeed. Furthermore, these skills, talents and abilities need to be throughout an organization especially in the C Suites. To get a sense of the success New Residential Investment Corp has had and where they are going, one needs to examine the three men leading the trust.
The mission of New Residential is to target assets that generate stable long-term cash flows and employ conservative capital structures to generate returns throughout different interest rate environments. While the ends are universally sound, achieving such ends is the tricky part. Finding and managing the right assets requires fearless leadership. Enter Michael Nierenberg.
Made Chief Executive Officer and President of New Residential in November 2013 and appointed as Chairman in May 2016, Mr. Nierenberg has been bringing the trust to new heights for almost 6 years now. Prior to his position with New Residential, Mr. Nierenberg served as managing director and head of Global Mortgages and Securitized Products at Bank of America Merrill Lynch. Before starting with BoA Merrill Lynch, in 2008, he led worked with JP Morgan heading up their Global Securitized Products while simultaneously serving as a member of the bank’s management committee. Before his time with JP Morgan, Mr. Nierenberg worked with Bear Stearns for fourteen years in a wide array of senior leadership positions. Senior leadership positions like head of interest rate and foreign exchange trading operations, co-head of structured products and co-head of mortgage-backed securities trading. From 2006 to 2008, he was a member of Bear Stearns’s Board of Directors. Prior to joining Bear Stearns, Mr. Nierenberg spent seven years at Lehman Brothers building the company’s adjustable rate mortgage business.
Speaking on the companies 2017 Annual Report, Nierenberg said this of New Residential:
The way that we view the company it’s a very unique one, which is different than other mortgage REITs and quite frankly virtually impossible to recreate in today’s environment. We put the company in what we believe to be a great position as the new tax bill and other initiatives from the administration would likely cause the Fed to raise rates three to four times this year and lead to higher rates.”
Hindsight is 20/20 and the Fed has done exactly as Nierenberg and his team predicted. In 2018, the Fed raised the interest rate four times to the current rate of 2.25% to 2.50%. While discussions of the Fed rate now usually revolve around an inverted curve yield or even a bottoming out of the yield, New Res was positioned to take advantage of the Fed’s recent moves.
Finding Financial Functionality
Chief Financial Officer of New Residential is Nick Santoro. “We are excited to welcome Nick to New Residential as the new Chief Financial Officer,” said Michael Nierenberg during the announcement of Mr. Santoro’s appointment. “With over 20 years of financial management experience, Nick is a strong addition to our team.” Prior to working with New Residential Nick was the Chief Accounting Officeer at FXCM from 2012 to 2015. During his time there he took care of the directing financial reporting, accounting, tax and financial planning activities.
High-Level Accounting Oversight
David Schneider is currently serving as the Chief Accounting Officer. Once a fighting Ram, Mr. Schneider earned a bachelor’s degree in Accounting from Fordham University. Working as Senior Vice President at Fortress since 2014, Mr. Schneider focuses on the financial reporting, internal controls and subservicer oversight for the Company. Beginning his career at Deloitte & Touche LLP, Mr. Schneider spent a little over seven years performing financial statement audits of global investment banks, leading the implementation of SOX 404 compliance and consulting on the SIPC liquidation of Lehman Brothers Inc. Before he joined Fortress, Mr. Schneider was a vice president at JPMorgan Chase. There he was advising on the structuring of securitizations and MSR transfers, while also helping to expand the internal control framework within Mortgage Banking.
To get more information on New Residential’s Executive Team visit their website at https://www.newresi.com/about/leadership/executive-management