Company: RITM-PC
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001556593-25-000024
Chunk: 20

Company: Rithm Capital Corp.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 2
Chunk 20
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 of the total principal balance of the pool that corresponds to loans that are delinquent by 90 or more days.

(F)Weighted averages exclude collateral information for which collateral data was not available as of the report date.

96

Servicer Advance Investments

Our servicer advance investments are associated with specified pools of residential mortgage loans in which we have contractually assumed the servicing advance obligation and include the related outstanding servicer advances, the requirement to purchase future servicer advances and the rights to the base fee component of the related MSR. 

The following is a summary of our servicer advance investments, including the right to the base fee component of the related MSRs (dollars in thousands):

June 30, 2025Amortized Cost BasisCarrying Value(A)UPB of Underlying Residential Mortgage LoansOutstanding Servicer AdvancesServicer Advances to UPB of Underlying Residential Mortgage LoansMr. Cooper serviced pools$302,338 $312,986 $12,580,445 $276,702 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 six months ended June 30, 2025 (dollars in thousands):

Weighted Average Discount RateWeighted Average Life (Years)(C)Six Months EndedJune 30, 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 %7.6$(1,527)$240,656 84.7 %82.7 %6.2 %5.9 %

(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):

June 30, 2025Principal and interest advances