Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 60

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1A
Chunk 60
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 consideration of ESG factors or construction of 

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specific ESG or impact funds could attract opposition from certain segments of our existing and potential client base. Any actual opposition to our consideration of ESG factors could impact our ability to maintain or raise capital for our funds, which may adversely impact our revenues.

A failure to maintain minimum servicer ratings could have an adverse effect on our business, financing activities, financial condition or results of operations. 

S&P, Moody’s and Fitch rate Newrez as a residential loan servicer, and a downgrade of, or failure to maintain, any of these servicer ratings could: 

•adversely affect Newrez’s ability to maintain our status as an approved servicer by Fannie Mae and Freddie Mac;

•adversely affect Newrez’s and/or Rithm Capital’s ability to finance servicing advance receivables and certain other assets; 

•lead to the early termination of existing advance facilities and affect the terms and availability of advance facilities that we may seek in the future; 

•cause Newrez’s termination as servicer in our servicing agreements that require Newrez to maintain specified servicer ratings; and

•further impair Newrez’s ability to consummate future servicing transactions. 

Any of the above could adversely affect our business, financial condition and results of operations. 

We do not have legal title to the MSRs underlying our Excess MSRs or certain of our servicer advance investments.

We do not have legal title to the MSRs underlying our Excess MSRs or certain of the MSRs related to the transactions contemplated by the purchase agreements pursuant to which we acquire servicer advance investments or MSR financing receivables from Mr. Cooper and are subject to increased risks as a result of the related servicer continuing to own the MSRs. The validity or priority of our interest in the underlying mortgage servicing could be challenged in a bankruptcy proceeding of the servicer and the related purchase agreement could be rejected in such proceeding. Any of the foregoing events might have a material adverse effect on our business, financial condition, results of operations and liquidity. 

Many of our investments may be illiquid, and this lack of liquidity could significantly impede our ability to vary our portfolio in response to changes in economic and other conditions or to realize the value at which such investments are carried if we are required to dispose of them.

Many of our investments are illiquid. Illiquidity may result from the absence of an established market for the investments, as well as legal or contractual restrictions on their resale