New Residential Investment : Non-QM Overview – January 2020

New Residential & NewRez

Non-QM Overview

January 2020

Disclaimers

IN GENERAL. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the "Presentation."

FORWARD-LOOKINGSTATEMENTS. Certain statements regarding New Residential Investment Corp. (together with its subsidiaries, "New Residential," "New Residential," the "Company" or "we") in this Presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the ability to continue growing our Non-QM business, including properly and efficiently, ability to use technology to enhance the origination process and be a differentiator and ability to continue executing as a non-QM industry leader. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond our control. New Residential can give no assurance that its expectations will be attained. Accordingly, you should not place undue reliance on any forward-looking statements made in this Presentation. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's most recent reports on Form 10-Q and Form 10-K and other filings with the U.S. Securities and Exchange Commission (the "SEC"), which are available on the Company's website (www.newresi.com). In addition, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this Presentation. New Residential expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

PAST PERFORMANCE. Past performance is not a reliable indicator of future results and should not be relied upon for any reason.

NO OFFER; NO RELIANCE. This Presentation is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security and may not be relied upon in connection with the purchase or sale of any security. Any reference to a potential financing does not constitute, nor should it be construed as, an offer to purchase or sell any security. There can be no assurance if or when the Company or any of its affiliates will offer any security or the terms of any such offering. Any such offer would only be made by means of formal documents, the terms of which would govern in all respects. You should not rely on this Presentation as the basis upon which to make any investment decision.

1

NewRez - Who We Are

NewRez LLC ("NewRez") is a national mortgage origination and servicing platform

NewRez Overview

• Founded in 2008 as New Penn Financial; rebranded to NewRez in January 2019
• Purchased by New Residential Investment Corp. in 2018; operates today as a subsidiary of New Residential
• Licensed to originate loans in 49 states and the District of Columbia
• Operates in 4 distinct business channels: Direct to Consumer, Retail (Joint Venture), Wholesale and Correspondent
• Fannie Mae, Freddie Mac, Ginnie Mae, HUD, FHA, VA, USDA approved; Non-Agency originator
• Access to an in-house servicer through NewRez's servicing division, which consists of:

NewRez Origination Activity Over Time

	7.0
			Estimated ~$22 billion of						$5.7
	6.0
billions)($			volume for FY'19(1)
3.0
	5.0											$3.9
	4.0
UPB	2.0	$1.3	$1.9	$1.9	$2.1		$2.2
	1.0
	0.0
		Q1'18	Q2'18	Q3'18	Q4'18	Q1'19				Q2'19	Q3'19
		Direct-to-Consumer		Retail			Wholesale			Correspondent

NewRez Product Mix

• • NewRez Servicing - Performing loan servicing division
  • Shellpoint Mortgage Servicing - Special servicing division
• Licensed to service in 50 states, the District of Columbia and several U.S. territories
• ~2,600 origination and servicing employees(2)
• Headquartered in Fort Washington, PA with ~150 offices nationwide

47%	47%	46%	42%	43%	52%	56%
42%	33%	31%	33%	38%	35%	33%
2%	9%	15%	19%	14%	9%	8%
10%	7%	5%	5%
8%
Q1'18	Q2'18		Q3'18	Q4'18	Q1'19		Q2'19		Q3'19
		Non-Agency		Non-QM		Government		Agency		Other

(1)	Based on management's current views and estimates and actual results may vary materially. See "Disclaimers" at the beginning of this Presentation for
	more information on forward-looking statements.	2
(2)	As of September 30, 2019 and does not include new employees hired following acquisition of assets from Ditech.

NewRez - Origination Platform

NewRez has a comprehensive origination platform that provides sourcing opportunities from four distinct

channels

Channel	Target Audience	Marketing Strategy	Operations
Direct-to-Consumer	Marketing of customers	 Proactive and reactive retention	Centralized processing
	in existing portfolio	 New customer acquisition primarily through
	and new customers	online channels
	through various lead
	generation sources
Retail (Joint	Joint Ventures	 18 Joint Ventures licensed in 26 states with	Mix of centralized and
Venture)	partnerships	relationships with realtors and builders, focused	local processing functions
		on the lead
Wholesale	Select mortgage	 Approximately 2,000 broker relationships that	Centralized processing
	brokers, community	enable clients to offer a wide range of products,	function in 2 locations
	banks and credit union	including government and non-agency
	customers	 Large network provides opportunity for
		expansive reach for Non-QM products
Correspondent	Mortgage lenders	 Approximately 650 correspondent clients that	Centralized processing
	originating and	allow mortgage lenders to offer a broad range of
	funding in their own	products, with focus on conventional and
	name	government and non-agency
		 Similar to wholesale, large network casts
		expansive net to expand Non-QM business

3

How Should Investors Think About the Non-QM Landscape?

"Non-QM"…the industry buzzword!

• Non-QMvolume continues to grow
• • +150% YoY (2018 volume: $10 billion vs 2019 volume: $25 billion)
  • Estimated Non-QM issuance of $40-$50 billion in 2020(1)
  • NewRez 2019 volume represents ~8% market share(2)
• While "Non-QM" can mean many things, for NewRez, it does not mean sub-prime
• • Most of NewRez's Non-QM products fall just outside the QM requirements for documentation or debt to income ratio, or points and fees
  • • Non-QMborrowers are creditworthy borrowers who have good credit, income and assets but do not fit traditional documentation requirements
    • Self-employedand small business owners are able to leverage strong business history with documented cash flows

1. Citi. "Mortgage Credit Weekly: Non-QM 2020 Outlook". November 2019.

(2) Based on 2019 issuance through September 30, 2019.	4

Non-QM - Why NewRez is Well-Positioned(1)

Diversified		Strong product menu of 6 distinct products ("Smart Series") across 4 channels
Platform &
	Products simplified to more easily understand how to meet borrowers needs
Product Menu

Ease of Process &

Strength of

Technology

• NewRez has built an efficient process that utilizes both technology and human interaction, guiding originators from product selection through loan closing
• Embedded technologies in leading loan origination systems provide originators with confidence when qualifying their borrowers
• Understanding borrower eligibility enables the originator to connect the borrower with the correct option

New
Residential &		Relationship with New Residential enables us to securitize loans without a middle man
Servicing		NewRez's servicing platform supports originations and services of loans properly and efficiently
Relationship

People and Experience

• Dedicated experts from sales, support desks, underwriting and operations assist throughout the loan process
• Talented professionals, with an understanding of the products, how to source them and effectively utilize the tools available, work with borrowers to create a positive loan experience

Track Record

 NewRez has a demonstrated history of developing innovative and high quality loan products  Strong loan performance to date reflects the quality of originations and servicing

(1) Based on management's current views and estimates and actual results may vary materially. See "Disclaimers" at the beginning of this Presentation for more information on forward-looking statements.

5

NewRez Origination - Non-QM Overview

NewRez's Non-QM Platform spans channels and products

• Single platform that extends from origination to securitization and servicing
• Suite of 6 products are offered across all 4 channels allowing for opportunistic growth during various business cycles
• • Each product provides different financing solutions to meet non-traditional needs of borrowers
  • NewRez products satisfy Ability-to-Repay requirements and reflect responsible lending practices
• Dedicated Non-QM experts and technology create consistency, high-quality loans and excellent client experience
• • Use of automated underwriting system ("AUS") rules-based engine
  • Specialized Non-QM underwriting team supporting all channels
  • Dedicated specialists for complex income review
• Experienced parent company securitizes (under NRZT shelf) and invests in assets
• NewRez's servicing business has extensive Non-QM expertise
• NewRez has a growing platform
• • Q1'19-Q3'19Non-QM volume of $1.1 billion; +$128% relative to same period 2018

NewRez Non-QM Production

Q1'19-Q3'19Non-QM volume of $1.1bn

	100%
	80%
of Total	60%
40%
%
	20%
	0%

Jan	Feb	Mar		Apr	May	Jun		Jul	Aug	Sep
						2019
		Correspondent		Wholesale			Call Center		Joint Venture

NewRez Non-QM Products

100%

% of Total

80%

60%

40%

20%

0%

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

2019

SmartCondo

SmartEdge

SmartFunds

SmartSelf

SmartTrac

SmartVest

6

NewRez Origination - Non-QM Products

NewRez has a suite of 6 competitive Non-QM Products to meet the needs of creditworthy borrowers who may

not qualify for traditional conventional or government loan programs

SmartEdge

SmartVest

For borrowers just outside agency

requirements

Created for borrowers qualifying with full documentation but who require non-agency features. Sometimes it is an alternative to a jumbo loan, and with amounts up to $3mm, higher DTIs and a cash out option, SmartEdge has gained popularity in both the Wholesale and Correspondent channels in 2019 and will continue to grow in 2020. This product is uniquely qualified to absorb product in the event of the QM patch expiry.

Created for experienced real estate investors looking to grow their portfolio. With up to 20 financed properties permitted and loan amounts up to $2mm, SmartVest provides the flexibility that real estate investors need. Qualifying through the income

For experienced real estate investors derived by the property, a major benefit is that neither tax returns nor transcripts are required for approval.

SmartTrac

SmartFunds

For borrowers with more recent

credit events

For borrowers who have had a negative credit incident in the past but are still viable borrowers. Even those with a bankruptcy, short sale or multiple late payments can be approved with a FICO as low as 620. These fixed and variable mortgages can help borrowers get back on track and into a home.

Created for borrowers with significant assets. Whether they are downsizing as life changes or looking to qualify without tax documentation, SmartFund loans are up to $3M and require limited documentation.

For borrowers qualifying using

liquid assets

SmartSelf

SmartCondo

For self-employed borrowers using

bank statements to qualify

Our most popular Non-QM product. Geared towards self-employedborrowers who are well qualified utilizing their business cash flow, this is the perfect loan program for small business owners when purchasing or refinancing. Includes loan amounts up to $3mm and income documentation from 12-24 months of bank statements (no tax returns needed).

For non-warrantable condos and

condotels

For non-warrantable condos and condotels. Being a national lender across all channels, this product is a major advantage for borrowers looking to purchase new construction, high percentage of commercial space or in cities where there are high-end condos that may not meet agency guidelines.

7

NewRez Origination - Non-QM Borrowers

Sourcing: NewRez sources borrowers from all four distribution channels

Overview of NewRez Non-QM Borrowers

• NewRez offers suitable mortgage products that meet the needs of creditworthy borrowers that do not otherwise satisfy conventional financing requirements
• • Strong credit profiles
  • Significant asset base and down payments
  • Documentation, verification and evaluation of all elements satisfying the borrower's Ability-to-Repay
  • Alternative documentation for business owners, investors and borrowers not meeting prime jumbo guidelines
• When evaluating borrowers, NewRez:
• • Conducts extensive underwriting and credit analysis
  • Understands each borrower's whole financial picture; ensures each borrower has willingness and ability to afford loan payments, other obligations and living expenses
• NewRez production does notinclude Foreign National, sub-620 FICO loans or very limited documentation options such as 1 or 6 month bank statement loans

Product	Average	Average	Average
	FICO(1)	LTV(1)	Loan Size(1)
All Smart	733	73%	$538,425
Series
Products
SmartEdge	729	72%	$632,800
SmartSelf	735	74%	$566,550
SmartVest	738	64%	$279,000
Additional	736	65%	$368,800
Smart Series
Products

	NewRez Smart Series Product
		Distribution(2)
NewRez Non-QM	SmartCondoSmartFunds
borrowers are unlikely	1%	1% SmartTrac
	1%
to meet QM standards	SmartVest
in the future, which	14%
may result in slower
prepayment speeds
	SmartEdge	SmartSelf
	28%
		55%

1. Based on all historical loan data of Smart Series Products as of September 30, 2019.

(2) Based on loan data of Smart Series Products as of September 30, 2019.	8

NewRez Origination - Non-QM Technology Platform(1)

NewRez's technology enhances the experience of the borrower and originator throughout the loan origination process

NewRez's origination technology allows us to…

• Be at the point of sale - Enables originators to present more options early in the process
• Identify the right product to meet customer needs - Accurate qualifying upfront
• Collaborate for success - Support teams can collaborate for best results
• Approve and close loans faster - Initial qualifying and documentation enables positive results and faster approvals
• Improve and expedite compliance, rate lock and closing processes - Fewer changes throughout the process allow for loans to better meet desired timelines and close more quickly

As the Non-QM product grows, we believe how we employ our technology will continue distinguish our platform in the

Non-QM space

1. Based on management's current views and estimates and actual results may vary materially. See "Disclaimers" at the beginning of this Presentation for

more information on forward-looking statements.	9

Non-QM Securitization Platform

In 2019, NRZ issued 5 Non-QM securitizations for an aggregate of ~$1.6 billion principal balance

NRZT Non-QM Securitization Summary	NRZT 2019-NQM 5(3)
	Mortgage Loan Characteristics

• New Residential is one of the largest issuers of Non-QM securitizations in an environment where the securitization market for non-agency mortgage products continues to grow
• Loans within NRZT securitizations typically contain borrowers that do not meet conventional financing guidelines (alternative documentation(1), self-employed, etc.) and are unlikely to convert to QM status in the future
• NRZ or a wholly-owned subsidiary of NRZ typically holds a vertical 5% of the capital structure
• At the time of acquisition, NRZ completes a thorough due diligence review of the mortgage loans, including 100% compliance, credit, and valuation review and data integrity

"The NRZT shelf is on the higher end of the FICO spectrum, with a slight increase in the highest FICO bucket over time. On the LTV front, the NRZT shelf falls right at the cohort average, though LTVs have crept marginally higher over time. The shelf contains the highest concentration of sub-33% DTIs."

- Wells Fargo Research, September 2019(2)

2019 Non-QM Securitization Tombstones

$295 Million				$306 Million
					$305 Million
NRZT 2019-NQM 1			NRZT 2019-NQM 2			NRZT 2019-NQM 3
January 2019				March 2019			June 2019
	$381 Million				$305 Million
	NRZT 2019-NQM 4			NRZT 2019-NQM 5
	September 2019				December 2019

Number of Loans					576
Aggregate Original Principal /			$305.5mm / $304.9mm
State Balance
Mortgage Interest Rate				3.375% to 9.00%
				Weighted Average 5.455%
% of Fixed-Rate / Adjustable Rate /		76.66% / 23.34% / 17.04%
I-O Mortgage Loans
Stated Remaining Term to				118 to 479 months
Maturity			Weighted average: 362 months
Original Term to Maturity				120 to 480 months
			Weighted average: 364 months
Loan Age					0 to 4 months
			Weighted average: 2 months
Weighted average original LTV				74.13%
ratio
Weighted average original credit			732
score
% Self Employed / Salaried / Debt		57.45% / 33.01% / 9.54%
Service Coverage
% Current					100.00%
			SmartFunds
Breakdown of		SmartCondo	1%	SmartTrac
	1%			1%
NRZT 2019-
SmartVest
NQM 5 by
	20%
Smart Series

Products (# of	SmartSelf
43%
loans)
SmartEdge
	34%

(1)	Income documented through sources other than 2 years of W-2's / tax returns.
(2)	Wells Fargo. "Non-Agency Insights: Coach's Fall 2019 Non-QM Playbook". September 2019.	10
(3)	Preliminary Private Placement Memorandum (NRMLT 2019-NQM5), dated November 4, 2019.

How to Think About Non-QM Going Forward?(1)

As the Non-QM landscape continues to evolve, NewRez is well-positioned to continue executing as an industry

leader

Immense Growth

Opportunity

Technology is a Differentiator

Non-QM Trend

• The Non-QM market is still maturing, leaving significant runway for growth, and the expiration of GSE QM Patch may accelerate Non-QM issuance
• Technology is a differentiator in helping to reduce operational complexity, elevate customer satisfaction and improve asset quality

NewRez Positioning

 NewRez's ability to originate and

securitize Non-QM products positions it

to respond to changes in Agency-eligible

production and react to legislative and

regulatory changes that may occur

 NewRez has established robust

technological solutions from point of

sale through closing

 NewRez has dedicated operational

Manufacturing Capacity	 Manufacturing capacity led by
product experts will continue to be
is a Focus	a focus to maintain quality

teams for Non-QM production, and

training programs to support in-house

growth

Industry Discipline

Around Product

Evolution

• Industry participants need to work together to support disciplined product evolution and a more standardized characterization of Non-QM

 NewRez continues to develop products

that meet the needs of credit-worthy

borrowers with an unwavering focus on

quality

1. Based on management's current views and estimates and actual results may vary materially. See "Disclaimers" at the beginning of this Presentation for

more information on forward-looking statements.	11