Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 154

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 154
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 a $1.1 billion decrease in fair value of our MSRs portfolio during the three months ended March 31, 2025 compared to the prior quarter. The decrease in fair value during the first quarter 2025 was primarily driven by a decrease in the forward interest curve, resulting in a $395.0 million, or approximately 3.9%, negative mark on our over $10.1 billion MSRs value.

As of March 31, 2025, the performing loan servicing division serviced $516.8 billion UPB of loans, the special servicing division serviced $269.7 billion UPB of loans, including $244.2 billion UPB of third-party servicing, and third parties serviced $58.3 billion UPB of loans, for a total servicing portfolio of $844.9 billion UPB, representing a $1.0 billion increase from December 31, 2024, contributing to the increase in servicing fee revenue. The increase in servicing fee revenue was also driven by prospective classification of certain servicing costs to loan servicing expense within general and administrative. The decrease in UPB of MSRs serviced by third-parties was driven by the transfer of certain MSRs to in-house servicing during the first quarter of 2025.

Three months ended March 31, 2025 compared to the three months ended March 31, 2024

Servicing revenue, net decreased $0.5 billion, primarily driven by a $0.6 billion decrease in fair value of our MSRs portfolio during the three months ended March 31, 2025 compared to three months ended March 31, 2024. The decrease in fair value during the first quarter 2025 was primarily driven by a decrease in the forward interest curve, resulting in a $395.0 million, or approximately 3.9%, negative mark on our over $10.1 billion MSRs value.

As noted above, our total servicing portfolio was $844.9 billion UPB as of March 31, 2025, representing a $197.3 billion increase from March 31, 2024, which resulted in the increase in servicing fee revenue. The increase in the total servicing portfolio UPB was driven by organic growth and the Computershare Acquisition in the second quarter of 2024, primarily UPB related to Special Servicing.

99

Interest Income

Three months ended March 31, 2025 compared to the three months ended December 31, 2024

Interest income for the