Company: RITM-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001556593-25-000033
Chunk: 258

Company: Rithm Capital Corp.
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 258
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 expenses related to loan origination and servicing, information technology and property and maintenance. The Investment Portfolio segment’s other segment expenses primarily include expenses related to legal and professional services, loan servicing and property and maintenance. The Residential Transitional Lending segment’s other segment expenses primarily include expenses related to loan origination. The Asset Management segment’s other segment expenses primarily include expenses related to legal and professional services, information technology and occupancy.

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RITHM CAPITAL CORP. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(dollars in tables in thousands, except share and per share data)

5. MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES

The following table summarizes activity related to MSRs and MSR financing receivables:Balance at December 31, 2024$10,321,671 Originations(A)1,199,933 Sales2,605 Change in Fair Value due to:Realization of cash flows(B)(516,406)Change in valuation inputs and assumptions(618,037)Balance at September 30, 2025$10,389,766 (A)Represents MSRs retained on the sale of originated residential mortgage loans. Includes $143.5 million of MSRs capitalized through co-issue with third parties for the nine months ended September 30, 2025.(B)Based on the paydown of the underlying residential mortgage loans.The following table summarizes components of servicing revenue, net:Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Servicing fee revenue, net and interest income from MSRs and MSR financing receivables$532,052 $454,757 $1,577,233 $1,338,860 Ancillary and other fees47,229 38,414 147,666 123,180 Servicing fee revenue, net and fees579,281 493,171 1,724,899 1,462,040 Change in Fair Value due to:Realization of cash flows(A)(189,881)(139,784)(513,452)(421,761)Change in valuation inputs and assumptions, net of realized gains (losses)(B)(219,555)(607,551)(623,387)(309,297)Gains on MSR economic hedges145,085 379,924 384,105 240,681 Servicing Revenue, Net$