Company: RITM-PC
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001556593-25-000024
Chunk: 112

Company: Rithm Capital Corp.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 1
Chunk 112
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 CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(dollars in tables in thousands, except share and per share data)

As part of the Computershare Acquisition (Note 3), Rithm Capital acquired MSRs owned by SLS underlying certain Excess MSRs owned by Rithm Capital. Accordingly, those Excess MSRs have been reclassified to full MSRs on Rithm Capital’s consolidated balance sheets. Investments in Excess MSRsThe following table presents activity related to the investments in Excess MSRs measured at fair value:Balance at December 31, 2024$369,162 Interest income13,299 Proceeds from repayments(35,134)Proceeds from sales(45)Change in fair value(1,605)Balance at June 30, 2025$345,677 The following summarizes Rithm Capital’s investments in Excess MSRs:June 30, 2025December 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. CooperTotal$50,719,526 65.0% – 80.0%(68.6%)20.0% – 35.0%(31.4%)5.9$300,082 $345,677 $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 June 30, 2025 and December 31, 2024 (Note 14) on $12.6 billion and $13.3 billion UPB, respectively, underlying these Excess MSRs. The following summarizes the changes in fair value of Excess MSRs investments:Three Months Ended June 30,Six Months Ended June 30,2025202420252024Original and recaptured pools$(690)$21,352 $(1,605)$19,430 As of June 30, 2025 and December 31, 2024, weighted average discount rates of 8.4% were used to value