Michael Nierenberg’s career is mainly and largely attributed to investing. Mike, having worked at various firms including Fortress, has a vast wealth on investments which has seen him successfully start and manage the New Residential Investment. In changing the investments landscape, NRZ has contributed a number of things such as:
Acting as a REIT
A Real Estate Investment Trust generally is a company whose main role is to manage, fund and operate real estate that generates income. New Residential provides investors with an opportunity to invest in several interlinked assets that would on average not be available usually for an ordinary investor. The company, under Nierenberg, pools money towards real estate assets aimed at building communities, towns and cities. This allows those with knowledge of the real estate to invest. The firm as well leases workspace and collects rent on them which is then redistributed among the shareholders. This has enabled the creation of a big industry
Offering a solid leadership team
The leadership team at the NRZ owns a vast wealth of information on the residential housing market. Top members of the executive board served at top firms including Fortress where even Michael Nierenberg served as a director. Through his team and success, investors have the confidence to set out on new ventures under their firm.
Use of excess mortgage serving rights as assets
Mike has been an innovator and leader of the residential mortgage loan investment market which includes MSRs and has over the years been vocal in championing for MSRs whose main requirements has been enough capital backing and a strong long-term business relationship. Michael Nierenberg, through the company, has shown to be of in-depth knowledge about MSRs since it is a complex investment asset which requires one to understand the benefits and shortcomings fully.
Through MSRs, there has been the creation of a new substantial asset opportunity and an improvement of quality in cash flows as MSRs cash flow is steady and predictable. Mike as well was a major contributor to the development of a liquid market for excess MSRs enabling companies therefore to trade excess MSRs. He as well influenced the company to own nonagency MSRs in all states of the US. MSRs as well creates a solid foundation for the value of the assets since they require new loan pools and more mortgages for the creation of new ones.