Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 16

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1
Chunk 16
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 loans that have similar characteristics, such as loan balance, FICO, coupon and prepayment protection. We invest in these securities to take advantage of particularly attractive prepayment-related or structural opportunities in the Agency RMBS markets.

Our Origination and Servicing segment also includes the activity from several wholly-owned subsidiaries or minority investments in companies that perform various services in the mortgage and real estate sectors. These subsidiaries and investments include: DGG RE Investments LLC d/b/a Guardian Asset Management (“Guardian”), which is a national provider of field services and property management services, eStreet Appraisal Management LLC (“eStreet”), which provides appraisal valuation services, and Avenue 365 Lender Services, LLC (“Avenue 365”), which provides title insurance and settlement services to Newrez.

Investment Portfolio

Our Investment Portfolio primarily consists of residential mortgage loans, SFR properties, consumer loans, Non-Agency RMBS, Excess MSRs and servicer advance investments. The majority of our residential mortgage loan portfolio is serviced in-house. With respect to our Excess MSRs, servicer advance investments and consumer loans, we engage third-party servicers to service the loans, or loans underlying the investments, as applicable. As of December 31, 2024, our third-party Servicing Partners include, but are not limited to, Mr. Cooper Group Inc. (“Mr. Cooper”), PHH Mortgage Corporation (“PHH”), Valon Mortgage, Inc. (“Valon”), Fay Financial LLC (“Fay”), Systems and Services Technologies, Inc. and OneMain Holdings, Inc.

Additionally, our commercial real estate platform is part of our Investment Portfolio and is focused on growing a direct lending platform and a leading CRE asset management business through our in house operator partner, GreenBarn Investment Group, which provides acquisition and development opportunities, asset and property management, leasing and construction support. 

Residential Mortgage Loans

Rithm Capital accumulates its residential mortgage loan portfolio through originations, bulk acquisitions and the execution of call rights.

Loans are accounted for based on our strategy for the loan and on whether the loan was performing or non-performing at the date of acquisition. Acquired performing loans means that, at the time of acquisition, it is likely the borrower will continue making payments in accordance with the contractual loan terms. Purchased non-performing loans means that, at the time of acquisition, it is not likely that the borrower will make payments in accordance with contractual loan terms (i.e., credit-impaired). We consider the delinquency status, loan-to-value