Company: RITM-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001556593-25-000033
Chunk: 117

Company: Rithm Capital Corp.
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 117
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December 31, 2024UPB of Underlying MortgagesInterest in Excess MSRWeighted Average Life (Years)(A)Amortized Cost BasisCarrying Value(B)Carrying Value(B)Rithm Capital(C)(D)Mr. Cooper(C)Total$49,260,027 65.0% – 80.0%(68.6%)20.0% – 35.0%(31.4%)5.8$290,710 $334,668 $369,162 (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 September 30, 2025 and December 31, 2024 (Note 14) on $12.2 billion and $13.3 billion UPB, respectively, underlying these Excess MSRs. As of September 30, 2025 and December 31, 2024, weighted average discount rates of 8.5% and 8.4%, 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 component of the related MSR. Rithm Capital elected to record its servicer advance investments, including the right to the base fee component of the related MSRs, at fair value under the FVO election to provide users of the financial statements with better information regarding the effects of market factors. The Company’s servicer advance investments are presented in other assets on the consolidated balance sheets.As part of the Computershare Acquisition (Note 3), Rithm Capital acquired certain MSRs owned by SLS underlying a certain servicer advance investment and, therefore, reclassified the servicer advance investment to MSRs and MSR financing receivables, at fair value and servicer advances receivable on its consolidated balance sheets. Mr. Cooper also performs all of the servicing and advancing functions on the Company’s remaining servicer advance investments. See Note 13 for further details. Rithm Capital owns