Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 132

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 132
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 not be recoverable from these sources, or if such advance is not recovered when the loan is repaid or related property is liquidated, then the servicer is, most often, entitled to withdraw funds from the trustee custodial account for payments on the serviced residential mortgage loans to reimburse the applicable advance. This is what is often referred to as a “general collections backstop.” See Note 5 to our consolidated financial statements for additional information related to servicer advances receivable.

We fund advances primarily from a combination of cash on hand, loan prepayments and secured financing arrangements. We finance our servicer advances with short- and medium-term collateralized borrowings. These borrowings are non-recourse committed facilities that are not subject to margin calls and bear either fixed or variable interest rates offered by the counterparty for the term of the notes, generally less than one year, of a specified margin over SOFR. See Note 18 to our consolidated financial statements for further information regarding financing of our servicer advances.

The table below summarizes our MSRs and MSR financing receivables as of March 31, 2025:

(dollars in billions)Current UPBWeighted Average MSR (bps)Carrying ValueGSE(A)$382.1 28 $6.2 Non-Agency(A)69.1 44 0.8 Ginnie Mae139.9 47 3.1 Total / Weighted Average$591.1 35 $10.1 

(A)Includes GSE and Non-Agency MSRs of $23.2 billion and $35.1 billion underlying UPB, respectively, serviced by third-party subservicers.

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The following tables summarize the collateral characteristics of the residential mortgage loans underlying our MSRs and MSR financing receivables as of March 31, 2025 (dollars in thousands):

Collateral CharacteristicsCurrent Carrying AmountCurrent Principal BalanceNumber of LoansWA FICO Score(B)WA CouponWA Maturity (Months)Average Loan Age (Months)Adjustable Rate Mortgage %(C)Three Month Average CPR(D)Three Month Average CRR(E)Three Month Average CDR(F)Three Month Average Recapture RateGSE(A)$6,195,239 $382,089,209 1,965,833 772 4.2 %272 63 0.9 %5.1 %5.1 %— %8.1 %Non-Agency(A)830,