Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 303

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 303
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 CORP. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(dollars in tables in thousands, except share data)

The following summarizes Rithm Capital’s direct investments in Excess MSRs:December 31, 2024UPB of Underlying MortgagesInterest in Excess MSRWeighted Average Life Years(A)Amortized Cost BasisCarrying Value(B)Rithm Capital(C)(D)Mr. CooperTotal$53,494,378 65.0% – 80.0% (69.9%)20.0% – 35.0% (30.9%)5.9$321,962 $369,162 December 31, 2023UPB of Underlying MortgagesInterest in Excess MSRWeighted Average Life Years(A)Amortized Cost BasisCarrying Value(B)Rithm Capital(C)(D)Former Manager-managed fundsMr. CooperTotal$42,957,347 32.5% – 100.0% (56.5%)—% – 50.0%—% – 35.0%6.3$181,721 $208,385 (A)Represents the weighted average expected timing of the receipt of expected cash flows for this investment.(B)Carrying value represents the fair value of the pools and recapture agreements, as applicable.(C)Amounts in parentheses represent weighted averages.(D)Rithm Capital also invested in related servicer advance investments, including the base fee component of the related MSR as of December 31, 2024 and 2023 (Note 14) on $13.3 billion and $15.5 billion UPB, respectively, underlying these Excess MSRs. Changes in fair value of Excess MSRs investments consist of the following:Year Ended December 31,202420232022Original and Recaptured Pools$10,820 $(12,712)$(1,436)As of December 31, 2024 and 2023, weighted average discount rates of 8.4% and 8.8%, respectively, were used to value Rithm Capital’s investments in Excess MSRs.

14. SERVICER ADVANCE INVESTMENTS

Servicer advance investments consist of arrangements to fund existing outstanding servicer advances and the requirement to purchase all future servicer advances made with respect to a specified pool of residential mortgage loans in exchange for the base fee