Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 208

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 1
Chunk 208
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242.9 billion, respectively. Rithm Capital earned servicing revenue of $76.0 million and $38.1 million for the three months ended March 31, 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 as part of general and administrative in the consolidated statements of operations. As of March 31, 2025, PHH and Valon Mortgage, Inc. subserviced 6.0% and 3.9% of owned MSRs, respectively, with the remaining 90.1% 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 25). 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:March 31, 2025December 31, 2024Principal and interest advances$588,004 $640,723 Escrow advances (taxes and insurance advances)1,503,455 1,733,426 Foreclosure advances924,809 950,092 Gross advance balance(A)(B)(C)3,016,268 3,324,241 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