New Residential Investment Corp., a real estate investment trust, is preparing to issue $1.96 billion of securities backed by mortgage servicing advance receivables.

The collateral consists entirely of repayment of funds advanced by Nationstar Mortgage on mortgages that it services, according to a presale report published by Standard & Poor’s. New Residential is a unit of Newcastle Investment Trust that was formed to acquire the receivables from Nationstar and other real estate-related assets. Both Nationstar and Newcastle are controlled by Fortress Investment Group.

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