Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 283

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 283
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3 and 2022, 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 as part of general and administrative in the consolidated statements of operations. As of December 31, 2024, PHH and Valon Mortgage, Inc. subserviced 7.1% and 4.0% of owned MSRs, respectively, with the remaining 88.9% 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.

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RITHM CAPITAL CORP. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(dollars in tables in thousands, except share data)

The table below summarizes the type of advances included in the servicer advances receivable:December 31,20242023Principal and interest advances$640,723 $616,801 Escrow advances (taxes and insurance advances)1,733,426 1,442,697 Foreclosure advances950,092 767,171 Gross advance balance(A)(B)(C)3,324,241 2,826,669 Reserves, impairment, unamortized discount, net of recovery accruals(125,320)(66,419)Total Servicer Advances Receivable$3,198,921 $2,760,250 (A)Includes $673.7 million and $585.0 million of servicer advances receivable related to GSEs MSRs, respectively, recoverable either from the borrower or the Agencies.(B)Includes $529.3 million and $405.6 million of servicer advances receivable related to Ginnie Mae MSRs, respectively, recoverable from either the borrower or Ginnie Mae. Expected losses for advances associated with Ginnie Mae loans in the MSR portfolio are considered in the MSR fair valuation through a non-reimburs