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RESIDENTIAL MORTGAGE LOANS (Tables)
 3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Schedule of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO
The following table summarizes residential mortgage loans outstanding by loan type:
March 31, 2023December 31, 2022
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)
$498,602 $426,259 9,278 9.1 %4.4$452,519 
Acquired performing loans(C)
81,396 70,897 2,204 8.5 %5.072,425 
Acquired non-performing loans(D)
31,712 26,614 403 9.1 %3.228,602 
Total residential mortgage loans, held-for-sale, at lower of cost or market$113,108 $97,511 2,607 8.7 %4.5$101,027 
Acquired performing loans(C)(E)
$983,700 $945,582 4,188 5.8 %15.1$890,131 
Acquired non-performing loans(D)(E)
263,732 244,752 1,403 4.6 %26.9340,342 
Originated loans1,556,000 1,553,475 5,353 6.1 %29.22,066,798 
Total residential mortgage loans, held-for-sale, at fair value$2,803,432 $2,743,809 10,944 5.9 %24.0$3,297,271 
Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market$2,916,540 $2,841,320 $3,398,298 
(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 90 days or more past due.
(D)As of March 31, 2023, Rithm Capital has placed non-performing loans, held-for-sale on nonaccrual status, except as described in (E) below.
(E)Includes $433.2 million and $240.3 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 March 31, 2023:
Carrying
Value(A)
% of PortfolioLoan
Count		% of PortfolioWeighted Average YieldWeighted Average Original Life (Months)
Weighted Average Committed Loan Balance to Value(B)
Construction$913,495 46.9 %51539.7 %8.7 %15.1
76.8% / 65.5%
Bridge815,663 41.9 %54642.2 %8.6 %20.573.0%
Renovation217,264 11.2 %23418.1 %8.9 %13.9
77.8% / 65.3%
$1,946,422 100.0 %1,295100.0 %8.7 %17.2N/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, 2022$2,064,028 
Initial loan advances275,907 
Construction holdbacks and draws153,730 
Paydowns and payoffs(547,243)
Balance at March 31, 2023$1,946,422 
Notes and Loans Receivable — The following table summarizes the activity for loans receivable:
Loans Receivable
Balance at December 31, 2022
$94,401 
Fundings— 
Payment in Kind2,134 
Proceeds from repayments(64,661)
Transfer to other assets— 
Fair value adjustments due to:
Changes in instrument-specific credit risk— 
Other factors231 
Balance at March 31, 2023
$32,105 
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 ConcentrationMarch 31, 2023December 31, 2022
Florida11.6 %10.9 %
California9.5 %10.2 %
Texas9.0 %8.9 %
New York7.8 %6.8 %
Georgia4.3 %4.2 %
Illinois3.7 %3.6 %
New Jersey3.6 %3.8 %
Indiana3.1 %3.2 %
Washington3.0 %4.4 %
Maryland2.9 %3.1 %
Other U.S. 41.5 %40.9 %
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:
March 31, 2023December 31, 2022
Days Past DueUPBFair ValueFair Value Over (Under) UPBUPBFair ValueFair Value Over (Under) UPB
90+$376,472 $338,474 $(37,999)$468,147 $423,321 $(44,826)
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:
March 31, 2023December 31, 2022
Days Past DueUPBFair ValueFair Value Over (Under) UPBUPBFair ValueFair Value Over (Under) UPB
Current$1,946,422 $1,946,422 $— $2,064,028 $2,064,028 $— 
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:
March 31, 2023December 31, 2022
Days Past DueUPBFair ValueFair Value Over (Under) UPBUPBFair ValueFair Value Over (Under) UPB
Current$98,410 $32,105 $(66,305)$157,745 $94,401 $(63,344)
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, 2022
$452,519 $101,027 $3,297,271 $3,850,817 
Originations — — 6,959,922 6,959,922 
Sales— — (7,635,871)(7,635,871)
Purchases/additional fundings1,269 — 131,444 132,713 
Proceeds from repayments(12,836)(3,585)(41,091)(57,512)
Transfer of loans to other assets(A)
— — 31 31 
Transfer of loans to real estate owned(1,449)(870)(430)(2,749)
Transfers of loans to held for sale(27,340)— — (27,340)
Transfer of loans from held-for-investment— — 27,340 27,340 
Valuation (provision) reversal on loans— 939 — 939 
Fair value adjustments due to:
Changes in instrument-specific credit risk4,785 — 7,446 12,231 
Other factors9,311 — (2,253)7,058 
Balance at March 31, 2023
$426,259 $97,511 $2,743,809 $3,267,579 
(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
March 31,
20232022
Interest income, gross of amounts attributable to servicer compensation$5,995 $13,375 
Amounts attributable to base servicer compensation177 (1,480)
Amounts attributable to incentive servicer compensation
(1,542)(7,739)
Interest income (expense) from servicer advance investments$4,630 $4,156 
The following table summarizes the net interest income for residential mortgage loans:
Three Months Ended
March 31,
20232022
Interest income:
Loans held-for-investment, at fair value$9,509 $10,280 
Loans held-for-sale, at lower of cost or fair value1,504 1,771 
Loans held-for-sale, at fair value37,286 70,309 
Total interest income48,299 82,360 
Interest expense:
Loans held-for-investment, at fair value4,670 7,346 
Loans held-for-sale, at lower of cost or fair value907 849 
Loans held-for-sale, at fair value42,779 42,108 
Total interest expense48,356 50,303 
Net interest income$(57)$32,057 
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
March 31,
20232022
Gain (loss) on residential mortgage loans originated and sold, net(A)
$(34,314)$(370,421)
Gain (loss) on settlement of residential mortgage loan origination derivative instruments(B)
9,904 524,823 
MSRs retained on transfer of residential mortgage loans(C)
140,513 461,452 
Other(D)
(5,443)27,701 
Realized gain on sale of originated residential mortgage loans, net$110,660 $643,555 
Change in fair value of residential mortgage loans31,598 (289,997)
Change in fair value of interest rate lock commitments (Note 17)26,240 (127,685)
Change in fair value of derivative instruments (Note 17)(59,230)246,123 
Gain on originated residential mortgage loans, held-for-sale, net$109,268 $471,996 
(A)Includes residential mortgage loan origination fees of $68.9 million and $252.5 million for the three months ended March 31, 2023 and 2022, 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.