XML 60 R49.htm IDEA: XBRL DOCUMENT v3.25.1

EXCESS MORTGAGE SERVICING RIGHTS (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
Sales						664
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-Agency			69,089,498						5.4						830,163
Ginnie Mae(C)			139,936,290						6.3						3,107,639
Total / Weighted Average			$	591,114,997					6.3						$	10,133,041
December 31, 2024
GSE			$	383,014,320					6.5						$	6,413,199
Non-Agency			70,022,636						5.4						836,408
Ginnie Mae(C)			137,177,395						6.4						3,072,064
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 income						4,190
Proceeds from repayments						(17,514)
Change in fair value						(915)
Balance at March 31, 2025						$	354,923

Schedule of Direct Investments in Excess MSRs

The following summarizes Rithm Capital’s direct investments in Excess MSRs:

			March 31, 2025																																				December 31, 2024
			UPB of Underlying Mortgages						Interest in Excess MSR												Weighted Average Life (Years)(A)						Amortized Cost Basis						Carrying Value(B)						Carrying Value(B)
									Rithm Capital(C)(D)						Mr. Cooper
Total			$	52,144,523					65.0% – 80.0% (69.9%)						20.0% – 35.0% (30.9%)						5.9						$	308,638					$	354,923					$	369,162

(A)Represents the weighted average expected timing of the receipt of expected cash flows for this investment.

(B)Carrying value represents the fair value of the pools and recapture agreements, as applicable.

(C)Amounts in parentheses represent weighted averages.

(D)Rithm Capital also invested in related servicer advance investments, including the base fee component of the related MSR as of March 31, 2025 and December 31, 2024 (Note 14) on $13.0 billion and $13.3 billion UPB, respectively, underlying these Excess MSRs.

Changes in fair value of Excess MSRs investments consist of the following:

						Three Months Ended March 31,
						2025						2024
Original and Recaptured Pools						$	(915)					$	(1,867)

X

- Definition

Tabular disclosure of activity in the balance of servicing assets subsequently measured at amortized cost. Includes, but is not limited to, beginning and ending balances, additions, disposals, and amortization.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481229/860-50-50-4

+ Details

Name:	us-gaap_ScheduleOfServicingAssetsAtAmortizedValueTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the activity in the balance of servicing assets (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (for instance, through purchases of servicing assets), disposals, changes in fair value during the period resulting from changes in inputs or assumptions used in the valuation model, other changes in fair value along with a description of those changes, and other changes that affect the balance along with a description of those changes.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481229/860-50-50-3

+ Details

Name:	us-gaap_ScheduleOfServicingAssetsAtFairValueTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_TransfersAndServicingAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration