Michael Nierenberg is the top executive at New Residential Investment Corp. He is the chairman of the board of directors, the president, and the chief executive officer. His firm invests exclusively in residential real estate and operates a REIT (real estate investment trust).
He says that one of the most critical skills he has is finding undervalued real estate on a regular basis. One type of real estate investment sees as being particularly lucrative is excess mortgage servicing rights (MSRs). Michael Nierenberg says the two things he is looking for when investing in an MSR is if it has adequate resources in regards to capital and whether or not it has any strong long-term business relationships. He invested $114 billion worth of MSRs in 2018 due to their money-making potential.
In order to take advantage of unique investment opportunities, Michael Nierenberg has developed a highly skilled team at New Residential Investment Corp. He hired people who have insightful knowledge about the real estate industry and are intuitive about investing. He says it also takes flexible capital to succeed in his line of work and well as the ability to form good solid business relationships.
Besides MSRs, Michael Nierenberg invests in other real estate financial vehicles as well. These include residential mortgage backed securities, residential mortgage loans, and other investments he views as opportunistic.
Michael Nierenberg has been in the financial industry for many years. Early in his career, he worked at Lehman Brothers, handling their adjustable rate mortgage investments, and he was also once on the board of directors for Bear Stearns. He was an executive at Bank of America Merrill Lynch as well as JP Morgan. He joined New Residential Investment Corp. in November 2013.
He predicted that the Fed would raise interest rates throughout 2018 and positioned his company to take advantage of this. As it turns out his prediction was spot-on and the Fed raised short term rates four times, going from 2.25% to 2.50%. His company has benefitted from this rise in rates due to the way he invested in anticipation of these Fed moves.