Company: RITM-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001556593-25-000033
Chunk: 98

Company: Rithm Capital Corp.
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 98
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 residential mortgage loans for unaffiliated parties under servicing agreements. The servicing agreements do not meet the criteria to be recognized as a servicing right asset and, therefore, are not recognized in the consolidated balance sheets. The UPB of residential mortgage loans serviced for others as of September 30, 2025 and December 31, 2024 was $269.2 billion and $242.9 billion, respectively. Rithm Capital earned servicing revenue of $77.0 million and $59.3 million for the three months ended September 30, 2025 and 2024, respectively, and $231.5 million and $148.4 million for the nine months ended September 30, 2025 and 2024, respectively, related to unaffiliated serviced loans presented within servicing revenue, net in the consolidated statements of operations.In relation to certain owned MSRs, Rithm Capital engages unaffiliated licensed mortgage servicers as subservicers to perform the operational servicing duties, including recapture activities, in exchange for a subservicing fee, which is recognized as subservicing expense and presented in general and administrative in the consolidated statements of operations. As of September 30, 2025, PHH and Valon Mortgage, Inc. subserviced 5.6% and 3.7% of owned MSRs, respectively, with the remaining 90.7% of owned MSRs serviced by Newrez (Note 1).Servicer Advances ReceivableIn connection with Rithm Capital’s ownership of MSRs, the Company assumes the obligation to serve as a liquidity provider to initially fund servicer advances on the underlying pool of mortgages it services (Note 26). These servicer advances are recorded when advanced and are included in servicer advances receivable on the consolidated balance sheets.The table below summarizes the type of advances included in the servicer advances receivable:September 30, 2025December 31, 2024Principal and interest advances$583,741 $640,723 Escrow advances (taxes and insurance advances)1,339,713 1,733,426 Foreclosure advances848,976 950,092 Gross advance balance(A)(B)(C)2,772,430 3,324,241 Reserves, impairment, unamortized discount, net of recovery accruals(125,389)(125,320)Total Servicer Advances Receivable$2,647,041 $3,198,