Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 225

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 1
Chunk 225
---
icer of the underlying loans in the portfolio. As part of the Computershare Acquisition (Note 3), Rithm Capital acquired MSRs owned by SLS underlying certain Excess MSRs owned by Rithm Capital. Accordingly, those Excess MSRs have been reclassified to full MSRs on Rithm Capital’s consolidated balance sheets. Investments in Excess MSRsThe following table presents activity related to the consolidated investments in Excess MSRs measured at fair value:Balance at December 31, 2024$369,162 Interest income4,190 Proceeds from repayments(17,514)Change in fair value(915)Balance at March 31, 2025$354,923 The following summarizes Rithm Capital’s direct investments in Excess MSRs:March 31, 2025December 31, 2024UPB of Underlying MortgagesInterest in Excess MSRWeighted Average Life (Years)(A)Amortized Cost BasisCarrying Value(B)Carrying Value(B)Rithm Capital(C)(D)Mr. CooperTotal$52,144,523 65.0% – 80.0%(69.9%)20.0% – 35.0%(30.9%)5.9$308,638 $354,923 $369,162 (A)Represents the weighted average expected timing of the receipt of expected cash flows for this investment.(B)Carrying value represents the fair value of the pools and recapture agreements, as applicable.(C)Amounts in parentheses represent weighted averages.(D)Rithm Capital also invested in related servicer advance investments, including the base fee component of the related MSR as of March 31, 2025 and December 31, 2024 (Note 14) on $13.0 billion and $13.3 billion UPB, respectively, underlying these Excess MSRs. Changes in fair value of Excess MSRs investments consist of the following:Three Months Ended March 31,20252024Original and Recaptured Pools$(915)$(1,867)As of March 31, 2025 and December 31, 2024, weighted average discount rates of 8.4% and 8.4% respectively were used to value Rithm Capital’s investments in Excess MSRs.

14. SERVICER ADVANCE INVESTMENTS

Servicer advance investments consist of arrangements to fund existing outstanding serv