Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 343

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 343
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 in the assumption used for the advance balance-to-UPB ratio. 

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

The following table summarizes certain information regarding the ranges and weighted averages of significant inputs used in valuing the servicer advance investments, including the base fee component of the related MSRs:Significant InputsOutstandingServicer Advancesto UPB of UnderlyingResidential MortgageLoansPrepayment Rate(A)DelinquencyMortgage Servicing Amount(B)DiscountRateCollateral Weighted Average Maturity (Years)(C)December 31, 2024(D)2.1% 4.6% 19.6% 19.9 bps6.5%21.1December 31, 2023(D)1.1% – 2.1%(2.1%)2.8% – 4.5%(4.4%)3.3% – 25.8%(25.3%)18.2 – 19.9(19.8) bps6.2% – 6.7%(6.2%)21.8(A)Projected annual weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (B)Mortgage servicing amount is net of 3.8 bps and 10.8 bps which represent the amounts Rithm Capital paid its servicers as a monthly servicing fee as of December 31, 2024 and 2023, respectively.(C)Weighted average maturity of the underlying residential mortgage loans in the pool.(D)As of December 31, 2023, servicer advance investments included those related to both SLS and Advance Purchaser, which is why we have included ranges for the significant inputs. As of December 31, 2024, the servicer advance investments relate only to Advance Purchaser. The valuation of the servicer advance investments also takes into account the performance fee paid to the servicer, which in the case of the buyer is based on its equity returns and therefore is impacted by relevant financing assumptions such as LTV ratio and interest rate as well as advance-to-UPB ratio. All of the assumptions listed have some degree of market observability, based on Rithm Capital’s knowledge of the market, relationships with market participants, and use of common