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MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (Tables)
 3 Months Ended
Mar. 31, 2025
Transfers and Servicing [Abstract]  
Schedule of Activity Related to the Carrying Value of Investments in Excess MSRs
The following table summarizes activity related to MSRs and MSR financing receivables:
Balance at December 31, 2024$10,321,671 
Originations(A)
348,988 
Sales664 
Change in Fair Value Due To:
Realization of cash flows(B)
(148,042)
Change in valuation inputs and assumptions(390,240)
Balance at March 31, 2025$10,133,041 
(A)Represents MSRs retained on the sale of originated residential mortgage loans. Includes $29.8 million of MSRs capitalized through co-issue with third-parties.
(B)Based on the paydown of the underlying residential mortgage loans.
The following table summarizes MSRs and MSR financing receivables by type as of March 31, 2025 and December 31, 2024:
UPB of Underlying Mortgages
Weighted Average Life (Years)(A)
Carrying Value(B)
March 31, 2025
GSE$382,089,209 6.4$6,195,239 
Non-Agency69,089,498 5.4830,163 
Ginnie Mae(C)
139,936,290 6.33,107,639 
Total / Weighted Average$591,114,997 6.3$10,133,041 
December 31, 2024
GSE$383,014,320 6.5$6,413,199 
Non-Agency70,022,636 5.4836,408 
Ginnie Mae(C)
137,177,395 6.43,072,064 
Total / Weighted Average$590,214,351 6.4$10,321,671 
(A)Represents the weighted average expected timing of the receipt of expected cash flows for this investment.
(B)Represents the fair value for this investment. As of March 31, 2025 and December 31, 2024, weighted average discount rates of 8.9% (range of 8.8% – 10.3%) and 8.9% (range of 8.7% - 10.3%), respectively, were used to value Rithm Capital’s MSRs and MSR financing receivables.
(C)As of March 31, 2025 and December 31, 2024, Rithm Capital had approximately $2.4 billion and $2.7 billion, respectively, in residential mortgage loans subject to repurchase and the related residential mortgage loans repurchase liability on its consolidated balance sheets.
The following table presents activity related to the consolidated investments in Excess MSRs measured at fair value:
Balance at December 31, 2024$369,162 
Interest income4,190 
Proceeds from repayments(17,514)
Change in fair value(915)
Balance at March 31, 2025$354,923 
Fees Earned in Exchange for Servicing Financial Assets
The following table summarizes components of servicing revenue, net:
Three Months Ended
March 31,
20252024
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables$526,810 $430,114 
Ancillary and other fees43,991 39,777 
Servicing fee revenue, net and fees570,801 469,891 
Change in Fair Value Due To:
Realization of cash flows(A)
(146,891)(116,839)
Change in valuation inputs and assumptions, net of realized gains (losses)(B)
(395,025)201,014 
Servicing Revenue, Net$28,885 $554,066 
(A)Net of $1.2 million of realization of cash flows related to excess spread financing for the three months ended March 31, 2025. There was no excess spread financing during the three months ended March 31, 2024 (Note 12).
(B)Net of $(4.8) million of change in valuation inputs and assumptions related to excess spread financing for the three months ended March 31, 2025. There was no excess spread financing during the three months ended March 31, 2024 (Note 12).
Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans of the Direct Investment in MSRs
The table below summarizes the geographic distribution of the residential mortgage loans underlying the MSRs and MSR financing receivables:
Percentage of Total Outstanding Unpaid Principal Amount
State ConcentrationMarch 31, 2025December 31, 2024
California16.4 %16.5 %
Florida8.2 %8.2 %
Texas6.6 %6.6 %
New York5.7 %5.7 %
Washington5.2 %5.2 %
New Jersey4.1 %4.1 %
Virginia3.7 %3.7 %
Maryland3.4 %3.4 %
Illinois3.3 %3.3 %
Georgia3.1 %3.1 %
Other U.S.40.3 %40.2 %
100.0 %100.0 %
Schedule of Investment in Servicer Advances
The table below summarizes the type of advances included in the servicer advances receivable:
March 31, 2025December 31, 2024
Principal and interest advances$588,004 $640,723 
Escrow advances (taxes and insurance advances)1,503,455 1,733,426 
Foreclosure advances924,809 950,092 
Gross advance balance(A)(B)(C)
3,016,268 3,324,241 
Reserves, impairment, unamortized discount, net of recovery accruals(141,753)(125,320)
Total Servicer Advances Receivable$2,874,515 $3,198,921 
(A)Includes $575.3 million and $673.7 million of servicer advances receivable related to GSE MSRs, respectively, recoverable either from the borrower or the Agencies.
(B)Includes $465.2 million and $529.3 million of servicer advances receivable related to Ginnie Mae MSRs, respectively, recoverable from either the borrower or Ginnie Mae. Expected losses for advances associated with Ginnie Mae loans in the MSR portfolio are considered in the MSR fair valuation through a non-reimbursable advance loss assumption.
(C)Expected losses for advances associated with loans in the MSR portfolio are considered in the MSR fair value through a non-reimbursable advance loss assumption.
The following table summarizes servicer advance investments, including the right to the base fee component of the related MSRs:
Amortized Cost Basis
Carrying Value(A)
Weighted Average Discount RateWeighted Average Yield
Weighted Average Life (Years)(B)
March 31, 2025
Servicer advance investments$311,049 $321,531 6.5 %6.8 %8.1
December 31, 2024
Servicer advance investments$327,471 $339,646 6.5 %6.9 %7.6
(A)Represents the fair value of the servicer advance investments, including the base fee component of the related MSRs.
(B)Represents the weighted average expected timing of the receipt of expected net cash flows for this investment.

The following table provides additional information regarding the servicer advance investments and related financing:
UPB of Underlying Residential Mortgage LoansOutstanding Servicer AdvancesServicer Advances to UPB of Underlying Residential Mortgage LoansFace Amount of Secured Notes and Bonds Payable
LTV(A)
Cost of Funds(C)
Gross
Net(B)
GrossNet
March 31, 2025
Servicer advance investments(D)
$12,955,658 $283,068 2.2 %$246,438 84.4 %82.5 %6.2 %5.8 %
December 31, 2024
Servicer advance investments(D)
$13,316,828 $298,945 2.2 %$258,183 85.0 %82.9 %6.3 %5.9 %
(A)Based on outstanding servicer advances, excluding purchased but unsettled servicer advances.
(B)Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve.
(C)Annualized measure of the cost associated with borrowings. Gross cost of funds primarily includes interest expense and facility fees. Net cost of funds excludes facility fees.
(D)The following table summarizes the types of advances included in servicer advance investments:
March 31, 2025December 31, 2024
Principal and interest advances$46,378 $51,135 
Escrow advances (taxes and insurance advances)130,494 137,072 
Foreclosure advances106,196 110,738 
Total$283,068 $298,945 
Schedule of Servicer Advances Reserve
The following table summarizes servicer advances provision activity during the period:
Balance at December 31, 2024$121,396 
Provision12,877 
Write-offs(5,482)
Balance at March 31, 2025$128,791