Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 137

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 137
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lying Residential Mortgage LoansMr. Cooper serviced pools$311,049 0$321,531 $12,955,658 $283,068 2.2 %

(A)Represents the fair value of the servicer advance investments, including the base fee component of the related MSRs.

The following summarizes additional information regarding our servicer advance investments and related financing, as of and for the three months ended March 31, 2025 (dollars in thousands):

Weighted Average Discount RateWeighted Average Life (Years)(C)Three Months EndedMarch 31, 2025Face Amount of Secured Notes and Bonds PayableLTV(A)Cost of Funds(B)Change in Fair Value Recorded in Other Income (Loss)GrossNet(D)GrossNetServicer advance investments(E)6.5 %8.1$(1,693)$246,438 84.4 %82.5 %6.2 %5.8 %

(A)Based on outstanding servicer advances, excluding purchased but unsettled servicer advances. 

(B)Represents the 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.

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

(D)Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve.

(E)The following table summarizes the types of advances included in servicer advance investments (dollars in thousands):

March 31, 2025Principal and interest advances$46,378 Escrow advances (taxes and insurance advances)130,494 Foreclosure advances106,196 Total$283,068 

Non-Agency Securities

Within our Non-Agency securities portfolio, we retain and own risk retention bonds from our securitizations that we do not consolidate in accordance with risk retention regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act, including the rules promulgated thereunder. We also retain and own bonds from our consolidated private label mortgage securitizations which we eliminate in consolidation. The equity value is reflected in assets of consolidated CFEs and liabilities of consolidated CFEs on the consolidated balance sheets and is excluded from the tables below. As of March 31, 2025, 88.4% of our Non-Agency securities portfolio was related to bonds retained pursuant to required