
Newrez has established itself as a key player in the mortgage servicing industry, currently overseeing an impressive $750 billion in unpaid principal balances.
Strategies for Growth and Client Retention
In a recent episode of the Power House podcast, Diego Sanchez, the president of HousingWire, sat down with Baron Silverstein, Newrez’s president.
Their conversation delved into the company’s strategies for growth, its approach to acquisitions, and how it integrates technology and artificial intelligence to bolster client retention.
They also discussed how Newrez balances its servicing and origination functions within the ever-evolving mortgage landscape.
Silverstein reflected on his five-year journey leading Newrez, a venture supported by Rithm Capital.
He described this experience as a blend of excitement and difficulty, noting that the mortgage industry’s continual change presents both hurdles and opportunities.
The acquisitions made during his tenure, he said, have helped to cultivate a more cohesive team spirit.
Acquisitions and Servicing Operations
When Sanchez asked about Newrez’s approach to mergers and acquisitions—especially given its significant growth in 2024—Silverstein revealed that the company is open to exploring a variety of opportunities.
He stressed that Newrez will be evaluating prospects across servicing, origination, and technology, ensuring they align with the firm’s overarching goals.
As the focus shifted to servicing operations, Sanchez acknowledged the vastness of Newrez’s servicing portfolio with its $755 billion in unpaid principal balances.
He probed Silverstein on how Newrez prioritizes its various business segments, which include retail, wholesale, and direct-to-consumer channels.
Silverstein confirmed that servicing remains at the forefront of the company’s strategy, particularly given the favorable interest rate environment.
He indicated that Rithm’s long-term strategy has consistently centered on servicing via acquisitions.
Technology Roadmap and Innovations
On the topic of origination, Silverstein discussed how each acquisition introduces unique focal points.
This flexibility enables Newrez to channel resources toward areas with the highest return potential.
He highlighted that their aim isn’t to become the largest player in the field but to adopt a strategic approach that promotes sustainable growth.
Sanchez then directed the conversation toward Newrez’s technology roadmap for 2025 and its benefits for clients.
While Silverstein acknowledged the importance of artificial intelligence, he emphasized that AI isn’t the only focus of their technological endeavors.
He pointed out a robust partnership with Salesforce, noting that they will continue to collaborate on innovative projects throughout 2025.
Silverstein also emphasized the development of digital tools that enhance self-service options and elevate customer engagement.
Their technological vision, he stressed, is expansive, encompassing a variety of innovations that reach beyond just AI and delve into areas like natural language processing.
In summary, Silverstein’s insights reveal a forward-thinking Newrez, committed to leveraging technology and a strategic approach to servicing and acquisitions—all aimed at enhancing client retention and satisfaction.
Source: Housingwire