New Residential Reports Big Increase In Origination Volume and Dividend Hike

2020 was a year to remember for the mortgage originators, and one to forget for the mortgage real estate investment trusts (REITs). For mortgage originators, the COVID-19 pandemic caused the Federal Reserve to push interest rates to the floor, which ushered in a massive refinancing wave. On the other hand, the initial days of the pandemic caused extreme volatility in the mortgage-backed securities market, which triggered a wave of margin calls for the mortgage REITs.

What does the future look like for a hybrid of the two? New Residential (NYSE: NRZ) is a mortgage REIT with an origination arm. The past year was difficult for the company, but it thinks it can recover to pre-COVID levels even as interest rates rise. How is that possible? Read on. 

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Source Fool.com