Nationstar Mortgage Holdings Inc (NYSE:NSM) increased its guidance for the second quarter of the current year. It expects origination volumes of $23 billion, up $7 billion from the prior guidance given in March. Much of the increase in the guidance could be attributed to the acquisition of Greenlight Financial. The latest acquisition would close in the second quarter and would be accretive immediately.
The company continues to look to expand its servicing and subservicing portfolio through acquisitions as large banks get rid of their MSRs. This will further drive growth for Nationstar Mortgage Holdings Inc (NYSE:NSM).
Newcastle Investment Corp. (NYSE:NCT)’s spin-off of New Residential Investment Corp (NYSE:NRZ) has created another opportunity for investors looking to expand their regular income. Additional sources of excess MSR transaction are a key driver for New Residential, while the shift away from commercial real estate towards senior living will create an upside for Newcastle. Therefore, I am bullish on both companies.
The article There Is Upside in Store for These REITs originally appeared on Fool.com and is written by Adnan Khan.
Adnan Khan has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Adnan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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