Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 19

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 19
---
Reserves, impairment, unamortized discount, net of recovery accruals(141,753)(125,320)Total Servicer Advances Receivable$2,874,515 $3,198,921 (A)Includes $575.3 million and $673.7 million of servicer advances receivable related to GSE MSRs, respectively, recoverable either from the borrower or the Agencies.(B)Includes $465.2 million and $529.3 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-reimbursable advance loss assumption.(C)Expected losses for advances associated with loans in the MSR portfolio are considered in the MSR fair value through a non-reimbursable advance loss assumption.Rithm Capital’s servicer advances receivable related to non-Agency MSRs generally have the highest reimbursement priority pursuant to the underlying servicing agreements (i.e., rank “top of the waterfall”), and Rithm Capital is generally entitled to repayment from the respective loan or REO liquidation proceeds before any interest or principal is paid on the notes issued by the trust. In most cases, advances in excess of the respective loan or REO liquidation proceeds may be recovered from pool-level proceeds. Furthermore, to the extent that advances are not recoverable by Rithm Capital as a result of the subservicer’s failure to comply with applicable requirements in the relevant servicing agreements, Rithm Capital has a contractual right to be reimbursed by the subservicer. For advances on loans that have been liquidated, sold, paid in full, modified or delinquent, the Company provisioned $128.8 million, or 4.3%, and $121.4 million, or 3.7%, for expected non-recovery of advances as of March 31, 2025 and December 31, 2024, respectively.The following table summarizes servicer advances provision activity during the period:Balance at December 31, 2024$121,396 Provision12,877 Write-offs(5,482)Balance at March 31, 2025$128,791 See Note 18 regarding the financing of MSRs and servicer advances receivable. 

20

RITHM CAPITAL CORP. AND SUBSIDIARIESNOTES TO CONSOLID