Company: RITM-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001556593-25-000033
Chunk: 38

Company: Rithm Capital Corp.
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 2
Chunk 38
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 Portfolio$877,524 $864,188 $821,669 $13,336 $55,855 

Three months ended September 30, 2025 compared to the three months ended June 30, 2025

Servicing revenue, net decreased $104.9 million, primarily driven by a decrease in the value of our MSRs driven by changes in interest rates and higher prepayment speeds, partially offset by a decrease in discount rates. The unrealized loss on our MSRs was partially offset by net gains on MSR economic hedges.

Nine months ended September 30, 2025 compared to the nine months ended September 30, 2024

Servicing revenue, net increased $0.5 million, primarily driven by increased servicing revenue as a result of a $55.9 billion increase in servicing UPB and prospective classification of certain servicing costs to loan servicing expense within general and administrative in 2025. The increase was partially offset by an unrealized loss, net of economic hedges, on our MSRs and increased realization of cash flows, primarily driven by changes in interest rates and higher prepayment speeds.

108 

Interest Income

Three months ended September 30, 2025 compared to the three months ended June 30, 2025

Interest income for the three months ended September 30, 2025 decreased $24.7 million, primarily driven by elevated default rates related to certain consumer loans. The impact of decline in interest rates and net reduction in securities portfolio was offset by higher average custodial account balances during the third quarter.

Nine months ended September 30, 2025 compared to the nine months ended September 30, 2024

Interest income for the nine months ended September 30, 2025 decreased $90.7 million, primarily driven by a reduced securities portfolio and elevated default rates related to certain consumer loans, partially offset by higher average custodial account balances during the nine months ended September 30, 2025.

Gain on Originated Residential Mortgage Loans, HFS, Net

The following table provides information regarding gain on originated residential mortgage loans, HFS, net as a percentage of pull through adjusted lock volume, by channel:

Three Months EndedNine Months Ended September 30,(dollars in thousands)September 30,2025June 30,202520252024Pull through adjusted lock volume$17,676,990$16,656,627$46,785,204$42,809,716Gain on Originated