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RESIDENTIAL MORTGAGE LOANS (Tables)
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Schedule of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO
The following table summarizes residential mortgage loans outstanding by loan type:
September 30, 2022December 31, 2021
Loan TypeOutstanding Face AmountCarrying
Value		Loan
Count		Weighted Average Yield
Weighted Average Life (Years)(A)
Carrying Value
Total residential mortgage loans, held-for-investment, at fair value(B)
$557,143 $470,935 9,936 8.1 %3.9$569,933 
Acquired performing loans(C)
101,691 86,418 2,414 8.0 %4.3130,634 
Acquired non-performing loans(D)
20,560 17,601 379 6.8 %4.32,287 
Total residential mortgage loans, held-for-sale, at lower of cost or market$122,251 $104,019 2,793 7.8 %4.3$132,921 
Acquired performing loans(C)(E)
$1,094,652 $1,009,159 5,508 5.2 %17.5$2,070,262 
Acquired non-performing loans(D)(E)
275,162 246,861 1,432 4.9 %14.8315,063 
Originated loans2,756,474 2,677,372 4,574 5.5 %29.08,829,599 
Total residential mortgage loans, held-for-sale, at fair value$4,126,288 $3,933,392 11,514 5.4 %25.0$11,214,924 
Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market$4,248,539 $4,037,411 $11,347,845 
(A)For loans classified as Level 3 in the fair value hierarchy, the weighted average life is based on the expected timing of the receipt of cash flows. For Level 2 loans, the weighted average life is based on the contractual term of the loan.
(B)Residential mortgage loans, held-for-investment, at fair value is grouped and presented as part of Residential Loans and Variable Interest Entity Consumer Loans Held-for-Investment, at Fair Value on the Consolidated Balance Sheets.
(C)Performing loans are generally placed on nonaccrual status when principal or interest is 120 days or more past due.
(D)As of September 30, 2022, Rithm Capital has placed non-performing loans, held-for-sale on nonaccrual status, except as described in (E) below.
(E)Includes $645.2 million and $140.2 million UPB of Ginnie Mae EBO performing and non-performing loans, respectively, on accrual status as contractual cash flows are guaranteed by the FHA.
The following table summarizes Mortgage Loans Receivable outstanding by loan purpose as of September 30, 2022:
Carrying
Value(A)
% of PortfolioLoan
Count		% of PortfolioWeighted Average YieldWeighted Average Original Life (Months)
Weighted Average Committed Loan Balance to Value(B)
Construction$865,222 45.0 %60638.1 %8.1 %14.8
77.2% / 66.1%
Bridge763,631 39.8 %54834.5 %7.7 %18.076.4%
Renovation291,060 15.2 %43527.4 %8.0 %12.9
78.1% / 66.4%
$1,919,913 100.0 %1,589100.0 %7.9 %15.8N/A
(A)Represents fair value.
(B)Weighted by commitment loan-to-value (“LTV”) for bridge loans, loan-to-cost (“LTC”) and loan-to-after-repair-value (“LTARV”) for construction and renovation loans.

The following table summarizes the activity for Mortgage Loans Receivables:
Balance at December 31, 2021$1,515,762 
Initial loan advances1,178,376 
Construction holdbacks and draws393,705 
Paydowns and payoffs(1,124,064)
Purchased loans premium amortization(43,868)
Balance at September 30, 2022$1,919,913 
Notes and Loans Receivable — The following table summarizes the activity for notes and loans receivable:
Notes ReceivableLoans ReceivableTotal
Balance at December 31, 2021
$60,549 $229,631 $290,180 
Fundings9,000 — 9,000 
Payment in Kind3,741 6,740 10,481 
Proceeds from repayments(6,651)(70,604)(77,255)
Transfer to other assets(1,000)— (1,000)
Fair value adjustments due to:
Changes in instrument-specific credit risk(30,243)— (30,243)
Other factors(228)(1,432)(1,660)
Balance at September 30, 2022
$35,168 $164,335 $199,503 
Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans
The following table summarizes the geographic distribution of the underlying residential mortgage loans:
Percentage of Total Outstanding Unpaid Principal Amount
State ConcentrationSeptember 30, 2022December 31, 2021
Florida10.2 %10.1 %
California10.0 %15.7 %
Texas8.4 %6.7 %
New York6.1 %7.1 %
Washington5.0 %7.5 %
New Jersey4.2 %3.8 %
Georgia4.1 %3.1 %
Illinois3.5 %2.8 %
Indiana3.1 %2.0 %
Maryland2.9 %3.1 %
Other U.S. 42.5 %38.1 %
100.0 %100.0 %
Schedule of Performing Loans Past Due
The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate fair value of loans:
September 30, 2022December 31, 2021
Days Past DueUnpaid Principal BalanceFair ValueFair Value Over (Under) Unpaid Principal BalanceUnpaid Principal BalanceFair ValueFair Value Over (Under) Unpaid Principal Balance
90+475,041 420,412 (54,629)779,178 740,043 (39,135)
The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate fair value of Mortgage Loans Receivable:
September 30, 2022December 31, 2021
Days Past DueUnpaid Principal BalanceFair ValueFair Value Over (Under) Unpaid Principal BalanceUnpaid Principal BalanceFair ValueFair Value Over (Under) Unpaid Principal Balance
Current$1,919,913 $1,919,913 $— $1,473,894 $1,515,762 $41,868 
90+— — — — — — 
The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate fair value of notes and loans receivable:
September 30, 2022December 31, 2021
Days Past DueUnpaid Principal BalanceFair ValueFair Value Over (Under) Unpaid Principal BalanceUnpaid Principal BalanceFair ValueFair Value Over (Under) Unpaid Principal Balance
Current$230,292 $199,503 $(30,789)$289,065 $290,180 $1,115 
90+— — — — — — 
Schedule of Loans Held For Sale, Fair Value
The following table summarizes the activity for residential mortgage loans:
Loans Held-for-Investment, at Fair ValueLoans Held-for-Sale, at Lower of Cost or Fair ValueLoans Held-for-Sale, at Fair ValueTotal
Balance at December 31, 2021
$569,932 $132,921 $11,214,924 $11,917,777 
Originations — — 59,457,213 59,457,213 
Sales— (4,426)(70,567,247)(70,571,673)
Purchases/additional fundings7,182 — 4,338,291 4,345,473 
Proceeds from repayments(65,349)(14,568)(346,973)(426,890)
Transfer of loans to other assets(A)
— — (25,552)(25,552)
Transfer of loans to real estate owned(3,543)(601)(355)(4,499)
Transfers of loans to held for sale(1,582)— — (1,582)
Transfer of loans from held-for-investment— — 1,582 1,582 
Valuation (provision) reversal on loans— (9,307)— (9,307)
Fair value adjustments due to:
Changes in instrument-specific credit risk(40,422)— (61,607)(102,029)
Other factors4,717 — (76,884)(72,167)
Balance at September 30, 2022
$470,935 $104,019 $3,933,392 $4,508,346 
(A)Represents loans for which foreclosure has been completed and for which Rithm Capital has made, or intends to make, a claim with the governmental agency that has guaranteed the loans that are grouped and presented as part of claims receivable in Other Assets (Note 13).
Schedule of Net Interest Income
The following table summarizes interest income related to Servicer Advance Investments:
Three Months Ended
September 30,		Nine Months Ended September 30,
2022202120222021
Interest income, gross of amounts attributable to servicer compensation$5,320 $(1,426)$26,664 $16,079 
Amounts attributable to base servicer compensation(367)897 (2,673)(849)
Amounts attributable to incentive servicer compensation
(4,436)892 (16,620)(8,144)
Interest income (expense) from servicer advance investments$517 $363 $7,371 $7,086 
The following table summarizes the net interest income for residential mortgage loans:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
Interest income:
Loans held-for-investment, at fair value$11,550 $11,090 $32,298 $34,061 
Loans held-for-sale, at lower of cost or fair value1,613 5,449 5,429 18,241 
Loans held-for-sale, at fair value47,885 75,802 174,536 163,769 
Total interest income61,048 92,341 212,263 216,071 
Interest expense:
Loans held-for-investment, at fair value3,793 4,238 9,955 13,129 
Loans held-for-sale, at lower of cost or fair value841 4,030 2,513 16,303 
Loans held-for-sale, at fair value and SFR properties47,953 49,187 129,332 103,785 
Total interest expense52,587 57,455 141,800 133,217 
Net interest income$8,461 $34,886 $70,463 $82,854 
Schedule of Originated Mortgage Loans
The following table summarizes the components of Gain on Originated Residential Mortgage Loans, Held-for-Sale, Net:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
Gain (loss) on residential mortgage loans originated and sold, net(A)
$(141,327)$249,848 $(933,582)$347,574 
Gain (loss) on settlement of residential mortgage loan origination derivative instruments(B)
57,407 (105,594)1,109,163 48,522 
MSRs retained on transfer of residential mortgage loans(C)
268,613 415,054 1,059,535 878,190 
Other(D)
2,763 27,614 32,302 79,716 
Realized gain on sale of originated residential mortgage loans, net$187,456 $586,922 $1,267,418 $1,354,002 
Change in fair value of residential mortgage loans(113,210)(70,932)(383,169)(67,545)
Change in fair value of interest rate lock commitments (Note 17)(104,440)(101,411)(154,644)(281,094)
Change in fair value of derivative instruments (Note 17)233,673 152,182 250,661 251,731 
Gain on originated residential mortgage loans, held-for-sale, net$203,479 $566,761 $980,266 $1,257,094 
(A)Includes residential mortgage loan origination fees of $156.8 million and $678.4 million for the three months ended September 30, 2022 and 2021, respectively. Includes residential mortgage loan origination fees of $526.1 million and $1,775.7 million for the nine months ended September 30, 2022 and 2021, respectively.
(B)Represents settlement of forward securities delivery commitments utilized as an economic hedge for mortgage loans not included within forward loan sale commitments.
(C)Represents the initial fair value of the capitalized mortgage servicing rights upon loan sales with servicing retained.
(D)Includes fees for services associated with the residential mortgage loan origination process.