Company: RITM-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001556593-25-000033
Chunk: 415

Company: Rithm Capital Corp.
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 415
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B and prospective classification of certain servicing costs to loan servicing expense within general and administrative in 2025. The increase was partially offset by an unrealized loss, net of economic hedges, on our MSRs and increased realization of cash flows, primarily driven by changes in interest rates and higher prepayment speeds.

108 

Interest Income

Three months ended September 30, 2025 compared to the three months ended June 30, 2025

Interest income for the three months ended September 30, 2025 decreased $24.7 million, primarily driven by elevated default rates related to certain consumer loans. The impact of decline in interest rates and net reduction in securities portfolio was offset by higher average custodial account balances during the third quarter.

Nine months ended September 30, 2025 compared to the nine months ended September 30, 2024

Interest income for the nine months ended September 30, 2025 decreased $90.7 million, primarily driven by a reduced securities portfolio and elevated default rates related to certain consumer loans, partially offset by higher average custodial account balances during the nine months ended September 30, 2025.

Gain on Originated Residential Mortgage Loans, HFS, Net

The following table provides information regarding gain on originated residential mortgage loans, HFS, net as a percentage of pull through adjusted lock volume, by channel:

Three Months EndedNine Months Ended September 30,(dollars in thousands)September 30,2025June 30,202520252024Pull through adjusted lock volume$17,676,990$16,656,627$46,785,204$42,809,716Gain on Originated Residential Mortgage Loans, as a Percentage of Pull Through Adjusted Lock Volume, by Channel:Direct to Consumer1.75 %3.39 %2.59 %3.18 %Retail / Joint Venture2.99 %3.49 %3.31 %3.65 %Wholesale1.19 %1.22 %1.23 %1.34 %Correspondent0.53 %0.43 %0.50 %0.50 %Total Gain on Originated Residential Mortgage Loans, as a Percentage of Pull Through Adjusted Lock Volume1.00 %1.04 %1.07 %1.10 %

The following table summarizes funded loan production by channel:

UPBThree Months EndedNine Months Ended September 30,(doll