Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 17

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 17
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 loans eligible for repurchase. Rather, upon repurchase of a loan, the MSR is written off. As of March 31, 2025, Rithm Capital holds approximately $0.5 billion of such repurchased loans presented within residential mortgage loans, held-for-sale on its consolidated balance sheets.Onity MSR Financing Receivable TransactionsOnity Group Inc. (formerly known as Ocwen Financial Corporation) (collectively with certain affiliates, “Onity”), and subsequently PHH Mortgage Corporation (“PHH”) (as successor through acquisition by Onity), and Rithm Capital entered into an agreement to transfer to Rithm Capital, Onity’s remaining interests in MSRs relating to loans with an aggregate unpaid principal balance (“UPB”) of approximately $110.0 billion and with respect to which Rithm Capital already held certain rights (“Rights to MSRs”). Additionally, Onity sold and transferred to Rithm Capital certain Rights to MSRs and other assets related to MSRs for loans with an UPB of approximately $86.8 billion, of which approximately $10.2 billion UPB, as of March 31, 2025, of underlying loans consents have not been received and all other conditions to transfer have not been met and, accordingly, are recorded as MSR financing receivables, at fair value. Geographic DistributionsThe table below summarizes the geographic distribution of the residential mortgage loans underlying the MSRs and MSR financing receivables:Percentage of Total Outstanding Unpaid Principal Amount State ConcentrationMarch 31, 2025December 31, 2024California16.4 %16.5 %Florida8.2 %8.2 %Texas6.6 %6.6 %New York5.7 %5.7 %Washington5.2 %5.2 %New Jersey4.1 %4.1 %Virginia3.7 %3.7 %Maryland3.4 %3.4 %Illinois3.3 %3.3 %Georgia3.1 %3.1 %Other U.S.40.3 %40.2 %100.0 %100.0 %Geographic concentrations of investments expose Rithm Capital to the risk of economic downturns within the relevant states. Any such downturn in a state where Rithm Capital holds significant investments could affect the underlying borrower’s ability to make mortgage payments and