New Residential is marketing another $301 million securitization of re-performing mortgage loans, according to Moody's Investors Service.

The real estate investment trust acquires loans by exercising “cleanup calls” on private label mortgage securitizations. As a servicer, it has the right to dissolve these trusts when at least 90% of the collateral has been paid down, making the deals uneconomical to service. When calls are exercised, the performing loans are sold to New Residential's own securitization trust and the REIT holds the nonperforming loans on its balance sheet.

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