(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
(Registrant’s telephone number, including area code) |
Title of each class: | Name of each exchange on which registered: | |||||||
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | |||||||||||||
Smaller reporting company | Emerging growth company |
PAGE | |||||
Part I. Financial Information | |||||
Part II. Other Information | |||||
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
CONSOLIDATED BALANCE SHEETS | ||
(dollars in thousands, except share data) |
June 30, 2023 (Unaudited) | December 31, 2022 | ||||||||||
Assets | |||||||||||
Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value | $ | $ | |||||||||
Real estate and other securities ($ | |||||||||||
Residential loans held-for-investment, at fair value | |||||||||||
Residential mortgage loans, held-for-sale ($ | |||||||||||
Consumer loans held-for-investment, at fair value(A) | |||||||||||
Single-family rental properties | |||||||||||
Mortgage loans receivable, at fair value(A) | |||||||||||
Residential mortgage loans subject to repurchase(B) | |||||||||||
Cash and cash equivalents(A) | |||||||||||
Restricted cash(A) | |||||||||||
Servicer advances receivable | |||||||||||
Receivable for investments sold | |||||||||||
Other assets(A) | |||||||||||
$ | $ | ||||||||||
Liabilities and Equity | |||||||||||
Liabilities | |||||||||||
Secured financing agreements(A) | $ | $ | |||||||||
Secured notes and bonds payable ($ | |||||||||||
Residential mortgage loan repurchase liability(B) | |||||||||||
Unsecured senior notes, net of issuance costs | |||||||||||
Payable for investments purchased | |||||||||||
Dividends payable | |||||||||||
Accrued expenses and other liabilities(A) | |||||||||||
Commitments and Contingencies | |||||||||||
Equity | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings (accumulated deficit) | ( | ( | |||||||||
Accumulated other comprehensive income | |||||||||||
Total Rithm Capital stockholders’ equity | |||||||||||
Noncontrolling interests in equity of consolidated subsidiaries(A) | |||||||||||
Total equity | |||||||||||
$ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||
(dollars in thousands, except share and per share data) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | $ | $ | $ | |||||||||||||||||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $( | ( | ||||||||||||||||||||||
Servicing revenue, net | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Interest expense and warehouse line fees | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Compensation and benefits | |||||||||||||||||||||||
Management fee | |||||||||||||||||||||||
Termination fee to affiliate | |||||||||||||||||||||||
Other Income (Loss) | |||||||||||||||||||||||
Realized and unrealized gains (losses) on investments, net | ( | ( | |||||||||||||||||||||
Other income (loss), net | |||||||||||||||||||||||
( | ( | ||||||||||||||||||||||
Income Before Income Taxes | |||||||||||||||||||||||
Income tax expense (benefit) | |||||||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | |||||||||||||||||||||||
Dividends on preferred stock | |||||||||||||||||||||||
Net Income (Loss) Attributable to Common Stockholders | $ | $ | ( | $ | $ | ||||||||||||||||||
Net Income (Loss) Per Share of Common Stock | |||||||||||||||||||||||
Basic | $ | $ | ( | $ | $ | ||||||||||||||||||
Diluted | $ | $ | ( | $ | $ | ||||||||||||||||||
Weighted Average Number of Shares of Common Stock Outstanding | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Dividends Declared per Share of Common Stock | $ | $ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) | ||
(dollars in thousands) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net | ( | ( | ( | ||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interests | |||||||||||||||||||||||
Dividends on preferred stock | |||||||||||||||||||||||
Comprehensive income (loss) attributable to common stockholders | $ | $ | ( | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) | ||
FOR THE THREE MONTHS ENDED JUNE 30, 2023 AND 2022 | ||
(dollars in thousands, except share and per share data) |
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Total Rithm Capital Stockholders’ Equity | Noncontrolling Interests in Equity of Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock, $ | — | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital distributions | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Director share grants and employee non-cash stock-based compensation | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net | — | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | ( | $ | $ | $ | $ |
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Total Rithm Capital Stockholders’ Equity | Noncontrolling Interests in Equity of Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock, $ | — | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Capital distributions | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Director share grants | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net | — | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | ( | $ | $ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) | ||
FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022 | ||
(dollars in thousands, except share and per share data) |
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Total Rithm Capital Stockholders’ Equity | Noncontrolling Interests in Equity of Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | — | $ | $ | — | $ | — | $ | $ | — | $ | $ | — | $ | ( | $ | — | $ | $ | — | $ | $ | — | $ | $ | — | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock, $ | — | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital distributions | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cashless exercise of 2020 Warrants | — | — | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Director share grants and employee non-cash stock-based compensation | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net | — | — | — | — | — | — | 2,303 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | ( | $ | $ | $ | $ |
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Total Rithm Capital Stockholders’ Equity | Noncontrolling Interests in Equity of Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock, $ | — | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Capital distributions | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock repurchase | ( | ( | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Director share grants | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net | — | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | ( | $ | $ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||
(dollars in thousands) |
Six Months Ended June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Cash Flows From Operating Activities | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||
Change in fair value of investments, net | ||||||||||||||
Change in fair value of equity investments | ||||||||||||||
Change in fair value of secured notes and bonds payable | ( | ( | ||||||||||||
(Gain) loss on settlement of investments, net | ( | ( | ||||||||||||
(Gain) loss on sale of originated residential mortgage loans, held-for-sale, net | ( | ( | ||||||||||||
(Gain) loss on transfer of loans to REO | ( | ( | ||||||||||||
Accretion and other amortization | ( | ( | ||||||||||||
Provision (reversal) for credit losses on securities, loans and real estate owned | ||||||||||||||
Non-cash portions of servicing revenue, net | ( | |||||||||||||
Deferred tax provision | ||||||||||||||
Mortgage loans originated and purchased for sale, net of fees | ( | ( | ||||||||||||
Sales proceeds and loan repayment proceeds for residential mortgage loans, held-for-sale | ||||||||||||||
Interest received from servicer advance investments, RMBS, loans and other | ||||||||||||||
Changes in: | ||||||||||||||
Servicer advances receivable, net | ||||||||||||||
Other assets | ||||||||||||||
Due to affiliate | ( | |||||||||||||
Accrued expenses and other liabilities | ||||||||||||||
Net cash provided by (used in) operating activities | ||||||||||||||
Cash Flows From Investing Activities | ||||||||||||||
Purchase of servicer advance investments | ( | ( | ||||||||||||
Purchase of MSRs, MSR financing receivables and servicer advances receivable | ( | |||||||||||||
Purchase of RMBS | ( | ( | ||||||||||||
Purchase of U.S. Treasury Bills | ( | |||||||||||||
Purchase of residential mortgage loans | ( | ( | ||||||||||||
Purchase of SFR properties, real estate owned and other assets | ( | ( | ||||||||||||
Draws on revolving consumer loans | ( | ( | ||||||||||||
Net settlement of derivatives | ||||||||||||||
Return of investments in Excess MSRs | ||||||||||||||
Principal repayments from servicer advance investments | ||||||||||||||
Principal repayments from RMBS | ||||||||||||||
Principal repayments from residential mortgage loans | ||||||||||||||
Principal repayments from consumer loans | ||||||||||||||
Principal repayments from MSRs and MSR financing receivables | ||||||||||||||
Proceeds from sale of MSRs and MSR financing receivables | ||||||||||||||
Proceeds from sale of RMBS | ||||||||||||||
Proceeds from sale of real estate owned | ||||||||||||||
Net cash provided by (used in) investing activities | ( |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED), CONTINUED | ||
(dollars in thousands) |
Six Months Ended June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Cash Flows From Financing Activities | ||||||||||||||
Repayments of secured financing agreements | ( | ( | ||||||||||||
Repayments of warehouse credit facilities | ( | ( | ||||||||||||
Net settlement of margin deposits under repurchase agreements and derivatives | ( | |||||||||||||
Repayments of secured notes and bonds payable | ( | ( | ||||||||||||
Deferred financing fees | ( | ( | ||||||||||||
Dividends paid on common and preferred stock | ( | ( | ||||||||||||
Borrowings under secured financing agreements | ||||||||||||||
Borrowings under warehouse credit facilities | ||||||||||||||
Borrowings under secured notes and bonds payable | ||||||||||||||
Repurchase of preferred stock | ( | |||||||||||||
Noncontrolling interest in equity of consolidated subsidiaries - distributions | ( | ( | ||||||||||||
Net cash provided by (used in) financing activities | ( | ( | ||||||||||||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | ||||||||||||||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | $ | $ | ||||||||||||
Cash, Cash Equivalents and Restricted Cash, End of Period | $ | $ | ||||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||
Cash paid during the period for interest | ||||||||||||||
Cash paid during the period for income taxes | ||||||||||||||
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||||||||||||||
Dividends declared but not paid on common and preferred stock | ||||||||||||||
Transfer from residential mortgage loans to real estate owned and other assets | ||||||||||||||
Real estate securities retained from loan securitizations | ||||||||||||||
Residential mortgage loans subject to repurchase | ||||||||||||||
Cashless exercise of 2020 warrants (par) | ||||||||||||||
Cashless purchase of consumer loans |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination | Servicing | MSR Related Investments | Total Origination and Servicing | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing revenue, net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A and other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) on investments, net | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (loss), net | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income (loss) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | ( | $ | $ | $ | $ | $ | ( | $ | $ | $ | ( | $ |
Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination | Servicing | MSR Related Investments | Total Origination and Servicing | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing revenue, net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A and other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) on investments, net | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (loss), net | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income (loss) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | ( | $ | $ | $ | $ | $ | ( | $ | $ | $ | ( | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination | Servicing | MSR Related Investments | Total Origination and Servicing | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests in equity of consolidated subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Rithm Capital stockholders’ equity | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in equity method investees | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination | Servicing | MSR Related Investments | Total Origination and Servicing(A) | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing revenue, net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A and other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) on investments, net | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (loss), net | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income (loss) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | ( | $ | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ | ( |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination | Servicing | MSR Related Investments | Total Origination and Servicing(A) | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing revenue, net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A and other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) on investments, net | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (loss), net | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income (loss) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | ( | $ | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Base servicing | |||||||||||||||||||||||
MSR-owned assets | $ | $ | $ | $ | |||||||||||||||||||
Residential whole loans | |||||||||||||||||||||||
Third party | |||||||||||||||||||||||
Other fees | |||||||||||||||||||||||
Ancillary and other fees(A) | |||||||||||||||||||||||
Change in fair value due to: | |||||||||||||||||||||||
Realization of cash flows | ( | ( | ( | ( | |||||||||||||||||||
Change in valuation inputs and assumptions and other | |||||||||||||||||||||||
Total servicing fees | $ | $ | $ | $ | |||||||||||||||||||
Servicing data – unpaid principal balance (“UPB”) (period end) (in millions) | |||||||||||||||||||||||
UPB – MSR-owned assets | $ | $ | $ | $ | |||||||||||||||||||
UPB – Residential whole loans | |||||||||||||||||||||||
UPB – Third party | |||||||||||||||||||||||
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
June 30, 2023 | December 31, 2022 | ||||||||||
Direct investments in Excess MSRs | $ | $ | |||||||||
Excess MSR Joint Ventures | |||||||||||
Excess mortgage servicing rights, at fair value | $ | $ |
Total(A) | |||||
Balance as of December 31, 2022 | $ | ||||
Interest income | |||||
Other income | |||||
Proceeds from repayments | ( | ||||
Proceeds from sales | ( | ||||
Change in fair value | ( | ||||
Balance as of June 30, 2023 | $ |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
UPB of Underlying Mortgages | Interest in Excess MSR | Weighted Average Life Years(A) | Amortized Cost Basis | Carrying Value(B) | Carrying Value(B) | |||||||||||||||||||||||||||||||||||||||
Rithm Capital(C, D) | Former Manager-managed funds | Mr. Cooper | ||||||||||||||||||||||||||||||||||||||||||
$ | ( | $ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Original and Recaptured Pools | $ | ( | $ | $ | ( | $ | ( |
June 30, 2023 | December 31, 2022 | ||||||||||
Excess MSR | $ | $ | |||||||||
Other assets | |||||||||||
Other liabilities | ( | ( | |||||||||
Equity | $ | $ | |||||||||
Rithm Capital’s investment | $ | $ | |||||||||
Rithm Capital’s percentage ownership | % | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Interest income | $ | $ | $ | $ | |||||||||||||||||||
Other income (loss) | ( | ( | ( | ||||||||||||||||||||
Expenses | ( | ( | ( | ( | |||||||||||||||||||
Net income (loss) | $ | $ | $ | $ |
Balance at December 31, 2022 | $ | ||||
Distributions of capital from equity method investees | ( | ||||
Change in fair value of investments in equity method investees | |||||
Balance at June 30, 2023 | $ |
June 30, 2023 | |||||||||||||||||||||||||||||||||||
Unpaid Principal Balance | Investee Interest in Excess MSR(A) | Rithm Capital Interest in Investees | Amortized Cost Basis(B) | Carrying Value(C) | Weighted Average Life (Years)(D) | ||||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||||||||
Original and Recaptured Pools | $ | % | % | $ | $ | ||||||||||||||||||||||||||||||
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Balance as of December 31, 2022 | $ | ||||
Purchases, net(A) | |||||
Originations(B) | |||||
Proceeds from sales(C) | ( | ||||
Change in fair value due to: | |||||
Amortization of servicing rights(D) | ( | ||||
Change in valuation inputs and assumptions | |||||
Balance at June 30, 2023 | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | $ | $ | $ | |||||||||||||||||||
Ancillary and other fees | |||||||||||||||||||||||
Servicing fee revenue, net and fees | |||||||||||||||||||||||
Change in fair value due to: | |||||||||||||||||||||||
Amortization of servicing rights | ( | ( | ( | ( | |||||||||||||||||||
Change in valuation inputs and assumptions, net of realized gains (losses) | |||||||||||||||||||||||
Change in fair value of derivative instruments | |||||||||||||||||||||||
Gain (loss) on settlement of derivative instruments | ( | ||||||||||||||||||||||
Servicing revenue, net | $ | $ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
UPB of Underlying Mortgages | Weighted Average Life (Years)(A) | Carrying Value(B) | |||||||||||||||
Agency | $ | $ | |||||||||||||||
Non-Agency | |||||||||||||||||
Ginnie Mae(C) | |||||||||||||||||
Total/Weighted Average | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Percentage of Total Outstanding Unpaid Principal Amount | ||||||||||||||
State Concentration | June 30, 2023 | December 31, 2022 | ||||||||||||
California | % | % | ||||||||||||
Florida | % | % | ||||||||||||
Texas | % | % | ||||||||||||
New York | % | % | ||||||||||||
Washington | % | % | ||||||||||||
New Jersey | % | % | ||||||||||||
Virginia | % | % | ||||||||||||
Maryland | % | % | ||||||||||||
Illinois | % | % | ||||||||||||
Georgia | % | % | ||||||||||||
Other U.S. | % | % | ||||||||||||
% | % |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
June 30, 2023 | December 31, 2022 | ||||||||||
Principal and interest advances | $ | $ | |||||||||
Escrow advances (taxes and insurance advances) | |||||||||||
Foreclosure advances | |||||||||||
Total(A)(B)(C) | $ | $ |
Balance at December 31, 2022 | $ | ||||
Provision | |||||
Write-offs | ( | ||||
Balance at June 30, 2023 | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Amortized Cost Basis | Carrying Value(A) | Weighted Average Discount Rate | Weighted Average Yield | Weighted Average Life (Years)(B) | |||||||||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||||||||
Servicer advance investments | $ | $ | % | % | |||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
Servicer advance investments | $ | $ | % | % |
UPB of Underlying Residential Mortgage Loans | Outstanding Servicer Advances | Servicer Advances to UPB of Underlying Residential Mortgage Loans | Face Amount of Secured Notes and Bonds Payable | Loan-to-Value (“LTV”)(A) | Cost of Funds(C) | ||||||||||||||||||||||||||||||||||||||||||
Gross | Net(B) | Gross | Net | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Servicer advance investments(D) | $ | $ | % | $ | % | % | % | % | |||||||||||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Servicer advance investments(D) | $ | $ | % | $ | % | % | % | % |
June 30, 2023 | December 31, 2022 | |||||||||||||
Principal and interest advances | $ | $ | ||||||||||||
Escrow advances (taxes and insurance advances) | ||||||||||||||
Foreclosure advances | ||||||||||||||
Total | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Face Amount | Gains | Losses | Carrying Value(A) | Number of Securities | Coupon(B) | Yield | Life (Years)(C) | Principal Subordination(D) | Carrying Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS Designated as Available for Sale (AFS): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency(E) | $ | $ | $ | $ | % | % | N/A | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency(F)(G) | ( | % | % | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS Measured at Fair Value through Net Income (FVO): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency(E) | ( | % | % | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency(F)(G) | ( | % | % | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average | $ | $ | $ | ( | $ | % | % | $ |
Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Gains | Losses | Carrying Value | Number of Securities | Coupon | Yield | Life (Years) | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | $ | $ | $ | % | % | ||||||||||||||||||||||||||||||||||||||||||||
Consumer loan bonds | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair value option securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-only securities | ( | % | % | |||||||||||||||||||||||||||||||||||||||||||||||
Servicing strips | ( | % | % | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial Mortgage Backed Securities | % | % |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average | ||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Face Amount | Amortized Cost / Carrying Value | Fair Value | Unrecognized Gains/(Losses) | Number of Securities | Yield | Life (Years) | Carrying Value | |||||||||||||||||||||||||||||||||||||||||||
Treasury Bills Designated as Held to Maturity (HTM): | ||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury | $ | $ | $ | $ | % | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Treasury | Agency | Non-Agency | Agency | Non-Agency | Treasury | Agency | Non-Agency | Agency | Non-Agency | |||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Purchase price | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale price | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on sale | ( | ( | ( | ( | ( | ( |
Securities in an Unrealized Loss Position | Outstanding Face Amount | Amortized Cost Basis | Gross Unrealized Losses | Carrying Value | Number of Securities | Weighted Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Before Credit Impairment | Credit Impairment(A) | After Credit Impairment | Coupon | Yield | Life (Years) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | $ | $ | $ | $ | $ | ( | $ | % | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
12 or More Months | ( | ( | % | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average | $ | $ | $ | ( | $ | $ | ( | $ | % | % |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Gross Unrealized Losses | Gross Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||
RMBS Designated as AFS | Fair Value | Amortized Cost Basis After Credit Impairment | Credit(A) | Non-Credit(B) | Fair Value | Amortized Cost Basis After Credit Impairment | Credit(A) | Non-Credit(B) | |||||||||||||||||||||||||||||||||||||||
Securities Rithm Capital intends to sell | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Securities Rithm Capital is more likely than not to be required to sell(C) | |||||||||||||||||||||||||||||||||||||||||||||||
Securities Rithm Capital has no intent to sell and is not more likely than not to be required to sell: | |||||||||||||||||||||||||||||||||||||||||||||||
Credit impaired securities | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Non-credit impaired securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Total debt securities in an unrealized loss position | $ | $ | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( |
RMBS Designated as AFS | Purchased Credit Deteriorated | Non-Purchased Credit Deteriorated | Total | ||||||||||||||
Allowance for credit losses on available-for-sale debt securities at December 31, 2022 | $ | $ | $ | ||||||||||||||
Additions to the allowance for credit losses on securities for which credit losses were not previously recorded | |||||||||||||||||
Additions to the allowance for credit losses arising from purchases of available-for-sale debt securities accounted for as purchased financial assets with credit deterioration | |||||||||||||||||
Reductions for securities sold during the period | ( | ( | |||||||||||||||
Reductions in the allowance for credit losses because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis | |||||||||||||||||
Additional increases (decreases) to the allowance for credit losses on securities that had credit losses, or an allowance recorded in a previous period | ( | ||||||||||||||||
Write-offs charged against the allowance | |||||||||||||||||
Recoveries of amounts previously written off | |||||||||||||||||
Allowance for credit losses on available-for-sale debt securities at June 30, 2023 | $ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Outstanding Face Amount | Carrying Value | ||||||||||
June 30, 2023 | $ | $ | |||||||||
December 31, 2022 |
Balance at December 31, 2022 | $ | ||||
Additions | |||||
Accretion | ( | ||||
Reclassifications from (to) non-accretable difference | |||||
Disposals | |||||
Balance at June 30, 2023 | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Loan Type | Outstanding Face Amount | Carrying Value | Loan Count | Weighted Average Yield | Weighted Average Life (Years)(A) | Carrying Value | ||||||||||||||||||||||||||||||||
Total residential mortgage loans, held-for-investment, at fair value | $ | $ | % | $ | ||||||||||||||||||||||||||||||||||
Acquired performing loans(B) | % | |||||||||||||||||||||||||||||||||||||
Acquired non-performing loans(C) | % | |||||||||||||||||||||||||||||||||||||
Total residential mortgage loans, held-for-sale, at lower of cost or market | $ | $ | % | $ | ||||||||||||||||||||||||||||||||||
Acquired performing loans(B)(D) | $ | $ | % | $ | ||||||||||||||||||||||||||||||||||
Acquired non-performing loans(C)(D) | % | |||||||||||||||||||||||||||||||||||||
Originated loans | % | |||||||||||||||||||||||||||||||||||||
Total residential mortgage loans, held-for-sale, at fair value | $ | $ | % | $ | ||||||||||||||||||||||||||||||||||
Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market | $ | $ | $ |
Percentage of Total Outstanding Unpaid Principal Amount | ||||||||||||||
State Concentration | June 30, 2023 | December 31, 2022 | ||||||||||||
Florida | % | % | ||||||||||||
California | % | % | ||||||||||||
Texas | % | % | ||||||||||||
New York | % | % | ||||||||||||
Georgia | % | % | ||||||||||||
Illinois | % | % | ||||||||||||
New Jersey | % | % | ||||||||||||
Indiana | % | % | ||||||||||||
Maryland | % | % | ||||||||||||
Virginia | % | % | ||||||||||||
Other U.S. | % | % | ||||||||||||
% | % |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Days Past Due | UPB | Carrying Value | Carrying Value Over (Under) UPB | UPB | Carrying Value | Carrying Value Over (Under) UPB | ||||||||||||||||||||||||||||||||
90+ | $ | $ | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||||
Loans Held-for-Investment, at Fair Value | Loans Held-for-Sale, at Lower of Cost or Fair Value | Loans Held-for-Sale, at Fair Value | Total | ||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | |||||||||||||||||||
Originations | |||||||||||||||||||||||
Sales | ( | ( | ( | ||||||||||||||||||||
Purchases/additional fundings | |||||||||||||||||||||||
Proceeds from repayments | ( | ( | ( | ( | |||||||||||||||||||
Transfer of loans to other assets(A) | |||||||||||||||||||||||
Transfer of loans to real estate owned | ( | ( | ( | ( | |||||||||||||||||||
Transfers of loans to held-for-sale | ( | ( | |||||||||||||||||||||
Transfer of loans from held-for-investment | |||||||||||||||||||||||
Valuation (provision) reversal on loans | ( | ( | |||||||||||||||||||||
Fair value adjustments due to: | |||||||||||||||||||||||
Changes in instrument-specific credit risk | |||||||||||||||||||||||
Other factors | |||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Loans held-for-investment, at fair value | $ | $ | $ | $ | |||||||||||||||||||
Loans held-for-sale, at lower of cost or fair value | |||||||||||||||||||||||
Loans held-for-sale, at fair value | |||||||||||||||||||||||
Total interest income | |||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||
Loans held-for-investment, at fair value | |||||||||||||||||||||||
Loans held-for-sale, at lower of cost or fair value | |||||||||||||||||||||||
Loans held-for-sale, at fair value | |||||||||||||||||||||||
Total interest expense | |||||||||||||||||||||||
Net interest income | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Gain (loss) on residential mortgage loans originated and sold, net(A) | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Gain (loss) on settlement of residential mortgage loan origination derivative instruments(B) | ( | ( | |||||||||||||||||||||
MSRs retained on transfer of residential mortgage loans(C) | |||||||||||||||||||||||
Other(D) | ( | ||||||||||||||||||||||
Realized gain on sale of originated residential mortgage loans, net | $ | $ | $ | $ | |||||||||||||||||||
Change in fair value of residential mortgage loans | ( | ||||||||||||||||||||||
Change in fair value of interest rate lock commitments (Note 17) | ( | ( | |||||||||||||||||||||
Change in fair value of derivative instruments (Note 17) | ( | ||||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net | $ | $ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Unpaid Principal Balance | Carrying Value | Weighted Average Coupon | Weighted Average Expected Life (Years) | ||||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||
SpringCastle | $ | $ | % | ||||||||||||||||||||
Marcus | % | ||||||||||||||||||||||
Total consumer loans | $ | $ | % | ||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
SpringCastle | $ | $ | % | ||||||||||||||||||||
Marcus | % | — | |||||||||||||||||||||
Total consumer loans | $ | $ | % |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Days Past Due | UPB | Carrying Value(A) | Carrying Value Over (Under) UPB | UPB | Carrying Value(A) | Carrying Value Over (Under) UPB | ||||||||||||||||||||||||||||||||
SpringCastle | ||||||||||||||||||||||||||||||||||||||
Current | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
90+ | ||||||||||||||||||||||||||||||||||||||
Total SpringCastle | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Marcus | ||||||||||||||||||||||||||||||||||||||
Current | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||
90+ | ||||||||||||||||||||||||||||||||||||||
Total Marcus | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||
$ | $ | $ | ( | $ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
SpringCastle | Marcus | Total | |||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ||||||||||||||
Purchases | |||||||||||||||||
Additional fundings(A) | |||||||||||||||||
Proceeds from repayments | ( | ( | ( | ||||||||||||||
Accretion of loan discount and premium amortization, net | |||||||||||||||||
Fair value adjustment due to: | |||||||||||||||||
Changes in instrument-specific credit risk | |||||||||||||||||
Other factors | ( | ( | |||||||||||||||
Balance at June 30, 2023 | $ | $ | $ |
June 30, 2023 | December 31, 2022 | ||||||||||
Land | $ | $ | |||||||||
Building | |||||||||||
Capital improvements | |||||||||||
Total gross investment in SFR properties | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Investment in SFR properties, net | $ | $ |
SFR Properties Held-for-Investment | SFR Properties Held-for-Sale | Total | ||||||||||||
Balance at December 31, 2022 | $ | $ | $ | |||||||||||
Acquisitions and capital improvements | ||||||||||||||
Reclassifications to SFR properties | ( | |||||||||||||
Dispositions | ( | ( | ( | |||||||||||
Accumulated depreciation | ( | ( | ( | |||||||||||
Balance at June 30, 2023 | $ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Remainder of 2023 | $ | |||||||
2024 and thereafter | ||||||||
Total | $ |
SFR Properties Held-for-Investment | SFR Properties Held-for-Sale | Total | ||||||||||||
Balance at December 31, 2022 | ||||||||||||||
Acquisition of SFR units | ||||||||||||||
Transfer to held-for-sale | ( | |||||||||||||
Disposition of SFR units | ( | ( | ( | |||||||||||
Balance at June 30, 2023 |
Carrying Value(A) | % of Portfolio | Loan Count | % of Portfolio | Weighted Average Yield | Weighted Average Original Life (Months) | Weighted Average Committed Loan Balance to Value(B) | ||||||||||||||||||||||||||||||||||||||
Construction | $ | % | % | % | ||||||||||||||||||||||||||||||||||||||||
Bridge | % | % | % | |||||||||||||||||||||||||||||||||||||||||
Renovation | % | % | % | |||||||||||||||||||||||||||||||||||||||||
$ | % | % | % | N/A |
Balance at December 31, 2022 | $ | |||||||
Initial loan advances | ||||||||
Construction holdbacks and draws | ||||||||
Paydowns and payoffs | ( | |||||||
Balance at June 30, 2023 | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Days Past Due | UPB | Carrying Value | Carrying Value Over (Under) UPB | UPB | Carrying Value | Carrying Value Over (Under) UPB | ||||||||||||||||||||||||||||||||
Current | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
90+ | ||||||||||||||||||||||||||||||||||||||
State Concentration | Percentage of Total Loan Commitment | |||||||
California | % | |||||||
Washington | % | |||||||
New York | % | |||||||
Colorado | % | |||||||
Florida | % | |||||||
Arizona | % | |||||||
Illinois | % | |||||||
North Carolina | % | |||||||
Texas | % | |||||||
New Jersey | % | |||||||
Other U.S. | % | |||||||
% |
June 30, 2023 | December 31, 2022 | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Total cash, cash equivalents and restricted cash | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
June 30, 2023 | December 31, 2022 | ||||||||||
MSRs and servicer advances | $ | $ | |||||||||
Real estate and other securities | |||||||||||
Consumer loans | |||||||||||
SFR properties | |||||||||||
Origination and servicing | |||||||||||
Mortgage loans receivable | |||||||||||
Total restricted cash | $ | $ |
Other Assets | Accrued Expenses and Other Liabilities | ||||||||||||||||||||||||||||
June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||
Margin receivable, net(A) | $ | $ | Margin payable | $ | $ | ||||||||||||||||||||||||
Excess MSRs, at fair value (Note 4) | Interest payable | ||||||||||||||||||||||||||||
Servicer advance investments, at fair value (Note 6) | Accounts payable | ||||||||||||||||||||||||||||
Servicing fee receivables | Derivative liabilities (Note 17) | ||||||||||||||||||||||||||||
Principal and interest receivable | Accrued compensation and benefits | ||||||||||||||||||||||||||||
Equity investments(B) | Operating lease liabilities (Note 16) | ||||||||||||||||||||||||||||
Other receivables | Deferred tax liability | ||||||||||||||||||||||||||||
REO | Other liabilities | ||||||||||||||||||||||||||||
Goodwill (Note 15)(C) | $ | $ | |||||||||||||||||||||||||||
Notes receivable, at fair value(E) | |||||||||||||||||||||||||||||
Warrants, at fair value | |||||||||||||||||||||||||||||
Property and equipment | |||||||||||||||||||||||||||||
Intangible assets (Note 15) | |||||||||||||||||||||||||||||
Prepaid expenses | |||||||||||||||||||||||||||||
Operating lease right-of-use assets (Note 16) | |||||||||||||||||||||||||||||
Derivative assets (Note 17) | |||||||||||||||||||||||||||||
Loans receivable, at fair value(D) | |||||||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||
$ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Balance at December 31, 2022 | $ | ||||
Purchases | |||||
Property received in satisfaction of loan | |||||
Sales(A) | ( | ||||
Valuation (provision) reversal | ( | ||||
Balance at June 30, 2023 | $ |
Notes Receivable | Loans Receivable | Total | |||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ||||||||||||||
Fundings | |||||||||||||||||
Payment in Kind | |||||||||||||||||
Proceeds from repayments | ( | ( | |||||||||||||||
Fair value adjustments due to: | |||||||||||||||||
Changes in instrument-specific credit risk | |||||||||||||||||
Other factors | |||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Days Past Due | UPB | Carrying Value(A) | Carrying Value Over (Under) UPB | UPB | Carrying Value(A) | Carrying Value Over (Under) UPB | ||||||||||||||||||||||||||||||||
Current | $ | $ | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||||
90+ | ||||||||||||||||||||||||||||||||||||||
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Legal and professional | $ | $ | $ | $ | |||||||||||||||||||
Loan origination | |||||||||||||||||||||||
Occupancy | |||||||||||||||||||||||
Subservicing | |||||||||||||||||||||||
Loan servicing | |||||||||||||||||||||||
Property and maintenance | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total general and administrative expenses | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Real estate and other securities | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Residential mortgage loans and REO | ( | ( | ( | ||||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||
Other(A) | ( | ( | ( | ||||||||||||||||||||
Realized and unrealized gains (losses) on investments, net | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Unrealized gain (loss) on secured notes and bonds payable | $ | $ | $ | $ | |||||||||||||||||||
Rental revenue | |||||||||||||||||||||||
Property and maintenance revenue | |||||||||||||||||||||||
(Provision) reversal for credit losses on securities | ( | ( | ( | ( | |||||||||||||||||||
Valuation and credit loss (provision) reversal on loans and real estate owned | ( | ( | ( | ( | |||||||||||||||||||
Other income (loss) | ( | ( | ( | ( | |||||||||||||||||||
Other income (loss), net | $ | $ | $ | $ | |||||||||||||||||||
Total Other income (loss) | $ | $ | ( | $ | $ | ( |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Origination | Servicing | MSR Related Investments | Mortgage Loans Receivable | Total | |||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Goodwill acquired | |||||||||||||||||||||||||||||
Accumulated impairment loss | |||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | $ |
Estimated Useful Lives (Years) | June 30, 2023 | December 31, 2022 | |||||||||||||||
Gross Intangible Assets | |||||||||||||||||
Customer relationships | $ | $ | |||||||||||||||
Purchased technology | |||||||||||||||||
Trademarks / Trade names | |||||||||||||||||
Accumulated Amortization | |||||||||||||||||
Customer relationships | |||||||||||||||||
Purchased technology | |||||||||||||||||
Trademarks / Trade names | |||||||||||||||||
Intangible Assets, Net | |||||||||||||||||
Customer relationships | |||||||||||||||||
Purchased technology(A) | |||||||||||||||||
Trademarks / Trade names(B) | |||||||||||||||||
$ | $ |
Year Ending | Amortization Expense | |||||||
July 1 through December 31, 2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 and thereafter | ||||||||
$ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Year Ending | Amount | |||||||
July 1 through December 31, 2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 and thereafter | ||||||||
Total remaining undiscounted lease payments | ||||||||
Less: imputed interest | ||||||||
Total remaining discounted lease payments | $ |
June 30, 2023 | December 31, 2022 | ||||||||||
Weighted-average remaining lease term (years) | |||||||||||
Weighted-average discount rate | % | % |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Balance Sheet Location | June 30, 2023 | December 31, 2022 | |||||||||||||||
Derivative assets | |||||||||||||||||
Interest rate swaps(A) | Other assets | $ | $ | ||||||||||||||
Interest rate lock commitments | Other assets | ||||||||||||||||
TBAs | Other assets | ||||||||||||||||
Options on treasury futures | Other assets | ||||||||||||||||
$ | $ | ||||||||||||||||
Derivative liabilities | |||||||||||||||||
Interest rate lock commitments | Accrued expenses and other liabilities | $ | $ | ||||||||||||||
TBAs | Accrued expenses and other liabilities | ||||||||||||||||
$ | $ |
June 30, 2023 | December 31, 2022 | ||||||||||
Interest rate swaps(A) | $ | $ | |||||||||
Interest rate lock commitments | |||||||||||
TBAs, short position(B) | |||||||||||
TBAs, long position(B) | |||||||||||
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Servicing revenue, net(A) | |||||||||||||||||||||||
TBAs | $ | $ | $ | $ | |||||||||||||||||||
Treasury futures | ( | ||||||||||||||||||||||
Options on treasury futures | |||||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net(A) | |||||||||||||||||||||||
Interest rate lock commitments | ( | ( | |||||||||||||||||||||
TBAs | ( | ||||||||||||||||||||||
Interest rate swaps | ( | ( | |||||||||||||||||||||
( | ( | ||||||||||||||||||||||
Realized and unrealized gains (losses) on investments, net(B) | |||||||||||||||||||||||
Interest rate swaps | |||||||||||||||||||||||
TBAs(C) | ( | ||||||||||||||||||||||
Total gain (loss) | $ | $ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateral | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations/Collateral(C) | Outstanding Face Amount | Carrying Value(A) | Final Stated Maturity(B) | Weighted Average Funding Cost | Weighted Average Life (Years) | Outstanding Face | Amortized Cost Basis | Carrying Value | Weighted Average Life (Years) | Carrying Value(A) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Financing Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase Agreements: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warehouse Credit Facilities-Residential Mortgage Loans(F) | $ | $ | Jul-23 to Jan-25 | % | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warehouse Credit Facilities-Mortgage Loans Receivable(E) | Dec-23 to May-24 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS or U.S. Treasury Bills(D) | Jul-23 to Feb-24 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency RMBS(E) | Jul-23 to Oct-27 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Secured Financing Agreements | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Notes and Bonds Payable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excess MSRs(G) | Aug-25 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MSRs(H) | Jan-24 to Mar-28 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advance Investments(I) | Aug-23 to Mar-24 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advances(I) | Aug-23 to Nov-26 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Mortgage Loans(J) | May-24 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Loans(K) | Jun-28 to Sep 37 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SFR Properties | Mar-26 to Sep-27 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans Receivable | Jul 26 to Dec-26 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Secured Notes and Bonds Payable | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/ Weighted Average | $ | $ | % | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Excess MSRs | MSRs | Servicer Advances(A) | Real Estate Securities | Residential Mortgage Loans and REO | Consumer Loans | SFR Properties | Mortgage Loans Receivable | Total | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Secured Financing Agreements | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized deferred financing costs, net of amortization | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Notes and Bonds Payable | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Discount on borrowings, net of amortization | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on notes, fair value | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized deferred financing costs, net of amortization | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Year Ending | Nonrecourse(A) | Recourse(B) | Total | |||||||||||||||||
July 1 through December 31, 2023 | $ | $ | $ | |||||||||||||||||
2024 | ||||||||||||||||||||
2025 | ||||||||||||||||||||
2026 | ||||||||||||||||||||
2027 | ||||||||||||||||||||
2028 and thereafter | ||||||||||||||||||||
$ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Debt Obligations / Collateral | Borrowing Capacity | Balance Outstanding | Available Financing(A) | |||||||||||||||||
Secured Financing Agreements | ||||||||||||||||||||
Residential mortgage loans and REO | $ | $ | $ | |||||||||||||||||
Loan originations | ||||||||||||||||||||
Secured Notes and Bonds Payable | ||||||||||||||||||||
Excess MSRs | ||||||||||||||||||||
MSRs | ||||||||||||||||||||
Servicer advances | ||||||||||||||||||||
Residential mortgage loans | ||||||||||||||||||||
$ | $ | $ |
Year | Price | |||||||
2023 | ||||||||
2024 and thereafter |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Principal Balance or Notional Amount | Carrying Value | Fair Value | |||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Excess MSRs(A) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
MSRs and MSR financing receivables(A) | |||||||||||||||||||||||||||||||||||
Servicer advance investments | |||||||||||||||||||||||||||||||||||
Real estate and other securities(B) | |||||||||||||||||||||||||||||||||||
Residential mortgage loans, held-for-sale | |||||||||||||||||||||||||||||||||||
Residential mortgage loans, held-for-sale, at fair value | |||||||||||||||||||||||||||||||||||
Residential mortgage loans, held-for-investment, at fair value | |||||||||||||||||||||||||||||||||||
Residential mortgage loans subject to repurchase | |||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||
Mortgage loans receivable(C) | |||||||||||||||||||||||||||||||||||
Notes receivable | |||||||||||||||||||||||||||||||||||
Loans receivable | |||||||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash | |||||||||||||||||||||||||||||||||||
Other assets(D) | N/A | ||||||||||||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Secured financing agreements | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Secured notes and bonds payable(E) | |||||||||||||||||||||||||||||||||||
Unsecured senior notes, net of issuance costs | |||||||||||||||||||||||||||||||||||
Residential mortgage loan repurchase liability | |||||||||||||||||||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Level 3 | Total | |||||||||||||||||||||||||||||||
Excess MSRs(A)(B) | MSRs and MSR Financing Receivables(A) | Servicer Advance Investments | Non-Agency RMBS | Derivatives(C) | Residential Mortgage Loans | Consumer Loans | Notes and Loans Receivable | Mortgage Loans Receivable | ||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
Transfers | ||||||||||||||||||||||||||||||||
Transfers from Level 3 | ( | ( | ( | |||||||||||||||||||||||||||||
Transfers to Level 3 | ||||||||||||||||||||||||||||||||
Gain (loss) included in net income | ||||||||||||||||||||||||||||||||
Credit losses on securities(D) | ||||||||||||||||||||||||||||||||
Servicing revenue, net(E) | ||||||||||||||||||||||||||||||||
Included in servicing revenue(E) | ( | ( | ||||||||||||||||||||||||||||||
Change in fair value of: | ||||||||||||||||||||||||||||||||
Excess MSRs(D) | ( | ( | ||||||||||||||||||||||||||||||
Servicer advance investments | ||||||||||||||||||||||||||||||||
Residential mortgage loans | ||||||||||||||||||||||||||||||||
Consumer loans | ( | ( | ||||||||||||||||||||||||||||||
Other income (loss), net(D) | ||||||||||||||||||||||||||||||||
Gains (losses) included in OCI(F) | ||||||||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||
Purchases, sales and repayments | ||||||||||||||||||||||||||||||||
Purchases, net(G) | ||||||||||||||||||||||||||||||||
Proceeds from sales | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Proceeds from repayments | ( | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Originations and other | ||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Level 3 | |||||
Asset-Backed Securities Issued | |||||
Balance at December 31, 2022 | $ | ||||
Gains (losses) included in net income | |||||
Other income(A) | ( | ||||
Purchases, sales and repayments | |||||
Proceeds from sales | |||||
Payments | ( | ||||
Balance at June 30, 2023 | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Significant Inputs(A) | ||||||||||||||||||||||||||||||||
Prepayment Rate(B) | Delinquency(C) | Recapture Rate(D) | Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps)(E) | Collateral Weighted Average Maturity (Years)(F) | ||||||||||||||||||||||||||||
Excess MSRs Directly Held | ( | ( | ( | |||||||||||||||||||||||||||||
Excess MSRs Held through Investees | ( | ( | ( | |||||||||||||||||||||||||||||
MSRs and MSR Financing Receivables(G) | ||||||||||||||||||||||||||||||||
Agency | ( | ( | —(H) | |||||||||||||||||||||||||||||
Non-Agency | ( | ( | —(H) | |||||||||||||||||||||||||||||
Ginnie Mae | ( | ( | —(H) | |||||||||||||||||||||||||||||
Total/Weighted Average—MSRs and MSR Financing Receivables | ( | ( | —(H) |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Significant Inputs | |||||||||||||||||||||||||||||||||||
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | Prepayment Rate(A) | Delinquency | Mortgage Servicing Amount(B) | Discount Rate | Collateral Weighted Average Maturity (Years)(C) | ||||||||||||||||||||||||||||||
June 30, 2023 | bps | ||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Multiple Quotes(A) | Single Quote(B) | Total | Level | ||||||||||||||||||||||||||||||||
Agency RMBS | $ | $ | $ | $ | $ | 2 | ||||||||||||||||||||||||||||||||
Non-Agency RMBS(C) | 3 | |||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Fair Value | Discount Rate | Prepayment Rate(a) | CDR(b) | Loss Severity(c) | ||||||||||||||||||||||||||||
Non-Agency RMBS | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Performing Loans | Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | |||||||||||||||||||||||||||
Acquired loans | $ | ( | ( | ( | ( | |||||||||||||||||||||||||||
Originated loans | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Residential mortgage loans held-for-sale, at fair value | $ |
Non-Performing Loans | Fair Value | Discount Rate | Annual change in home prices | Liquidation Timeline (in years) | Current Value of Underlying Properties | |||||||||||||||||||||||||||
Acquired | $ | ( | ( | ( | ( | |||||||||||||||||||||||||||
Originated | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Residential mortgage loans held-for-sale, at fair value | $ |
Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | ||||||||||||||||||||||||||||
Residential mortgage loans held-for-investment, at fair value | $ | ( | ( | ( | ( |
Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | ||||||||||||||||||||||||||||
SpringCastle | $ | ( | ( | ( | ( | |||||||||||||||||||||||||||
Marcus | ||||||||||||||||||||||||||||||||
Consumer loans, held-for-investment, at fair value | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Fair Value | Loan Funding Probability | Fair Value of Initial Servicing Rights (Bps) | ||||||||||||||||||
IRLCs, net | $ | ( | ( |
Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | ||||||||||||||||||||||||||||
Asset-backed securities issued | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Fair Value and Carrying Value | Discount Rate | Weighted Average Life (Years)(A) | Prepayment Rate | CDR(B) | Loss Severity(C) | |||||||||||||||||||||||||||||||||
Performing loans | $ | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
Non-performing loans | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
Total/weighted average | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Advance Purchaser | Newrez Joint Ventures | Residential Mortgage Loans | Consumer Loan SPVs | Mortgage Loans Receivable | Total | ||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Servicer advance investments, at fair value | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Residential mortgage loans, held-for-sale, at fair value | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Mortgage loans receivable | |||||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||||
Restricted cash | |||||||||||||||||||||||
Other assets | |||||||||||||||||||||||
Total Assets | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Secured notes and bonds payable(A) | |||||||||||||||||||||||
Accrued expenses and other liabilities | |||||||||||||||||||||||
Total Liabilities | $ | $ | $ | $ | $ | $ | |||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Servicer advance investments, at fair value | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Residential mortgage loans, held-for-investment, at fair value | |||||||||||||||||||||||
Residential mortgage loans, held-for-sale, at fair value | |||||||||||||||||||||||
Mortgage loans receivable | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||||
Restricted cash | |||||||||||||||||||||||
Other assets | ( | ||||||||||||||||||||||
Total Assets | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Secured financing agreements(A) | |||||||||||||||||||||||
Secured notes and bonds payable(A) | |||||||||||||||||||||||
Accrued expenses and other liabilities | |||||||||||||||||||||||
Total Liabilities | $ | $ | $ | $ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
As of and for the Six Months Ended June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Residential mortgage loan UPB and other collateral | $ | $ | ||||||||||||
Weighted average delinquency(A) | % | % | ||||||||||||
Net credit losses | $ | $ | ||||||||||||
Face amount of debt held by third parties(B) | $ | $ | ||||||||||||
Carrying value of bonds retained by Rithm Capital(C)(D) | $ | $ | ||||||||||||
Cash flows received by Rithm Capital on these bonds | $ | $ |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Advance Purchaser(A) | Newrez Joint Ventures | Consumer Loan Companies | Advance Purchaser(A) | Newrez Joint Ventures | Consumer Loan Companies | ||||||||||||||||||||||||||||||
Total consolidated equity | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Others’ ownership interest | % | % | % | % | % | % | |||||||||||||||||||||||||||||
Others’ interest in equity of consolidated subsidiary | $ | $ | $ | $ | $ | $ |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Advance Purchaser(A) | Newrez Joint Ventures | Consumer Loan Companies | Advance Purchaser(A) | Newrez Joint Ventures | Consumer Loan Companies | ||||||||||||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Others’ ownership interest | % | % | % | % | % | % | |||||||||||||||||||||||||||||
Others’ interest in net income (loss) of consolidated subsidiary | $ | $ | $ | $ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Advance Purchaser(A) | Newrez Joint Ventures | Consumer Loan Companies | Advance Purchaser(A) | Newrez Joint Ventures | Consumer Loan Companies | ||||||||||||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Others’ ownership interest | % | % | % | % | % | % | |||||||||||||||||||||||||||||
Others’ interest in net income (loss) of consolidated subsidiary | $ | $ | $ | $ | $ | $ |
Dividends Declared per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series | June 30, 2023 | December 31, 2022 | Liquidation Preference(A) | Issuance Discount | Carrying Value(B) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Series A, | $ | % | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Series B, | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series C, | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series D, | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Declaration Date | Payment Date | Per Share | Total Amounts Distributed (millions) | |||||||||||||||||
Quarterly Dividend | ||||||||||||||||||||
March 21, 2022 | April 2022 | $ | $ | |||||||||||||||||
June 17, 2022 | July 2022 | |||||||||||||||||||
September 22, 2022 | October 2022 | |||||||||||||||||||
December 15, 2022 | January 2023 | |||||||||||||||||||
March 17, 2023 | April 2023 | |||||||||||||||||||
June 23, 2023 | July 2023 |
Number of Warrants (in millions) | Adjusted Weighted Average Exercise Price (per share) | ||||||||||||||||
Initial | Adjusted(A) | ||||||||||||||||
December 31, 2022 | $ | ||||||||||||||||
Granted | |||||||||||||||||
Exercised | ( | ( | |||||||||||||||
Expired | |||||||||||||||||
June 30, 2023 |
Held by Former Manager | |||||
Issued to the independent directors | |||||
Total |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Recipient | Date of Grant/ Exercise(A) | Number of Unexercised Options | Options Exercisable as of June 30, 2023 | Weighted Average Exercise Price(B) | Intrinsic Value of Exercisable Options as of June 30, 2023 (millions) | ||||||||||||||||||||||||
Directors | Various | $ | $ | ||||||||||||||||||||||||||
Former Manager | 2017 | ||||||||||||||||||||||||||||
Former Manager | 2018 | ||||||||||||||||||||||||||||
Former Manager | 2019 | ||||||||||||||||||||||||||||
Former Manager | 2020 | ||||||||||||||||||||||||||||
Former Manager | 2021 | ||||||||||||||||||||||||||||
Outstanding |
Number of Options | Weighted Average Exercise Price | |||||||||||||
December 31, 2022 | $ | |||||||||||||
Granted | ||||||||||||||
Exercised | ||||||||||||||
Expired | ( | |||||||||||||
June 30, 2023 | See table above |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Number of Shares | Grant Date Price | |||||||||||||||||||||||||||||||||||||||||||
RSAs | RSUs | PSUs | Total | RSAs | RSUs | PSUs | ||||||||||||||||||||||||||||||||||||||
Unvested Shares at December 31, 2022 | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
Granted | ||||||||||||||||||||||||||||||||||||||||||||
Accrued RSU and PSU dividend equivalents(A) | ||||||||||||||||||||||||||||||||||||||||||||
Vested | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Forfeited | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Unvested Shares at June 30, 2023(A) |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Noncontrolling interests in income of consolidated subsidiaries | |||||||||||||||||||||||
Dividends on preferred stock | |||||||||||||||||||||||
Net income attributable to common stockholders | $ | $ | ( | $ | $ | ||||||||||||||||||
Basic weighted average shares of common stock outstanding | |||||||||||||||||||||||
Dilutive effect of stock options, restricted stock, common stock purchase warrants, RSUs and PSUs(A)(B) | |||||||||||||||||||||||
Diluted weighted average shares of common stock outstanding | |||||||||||||||||||||||
Basic earnings per share attributable to common stockholders | $ | $ | ( | $ | $ | ||||||||||||||||||
Diluted earnings per share attributable to common stockholders | $ | $ | ( | $ | $ |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
(dollars in tables in thousands, except share and per share data) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Current: | |||||||||||||||||||||||
Federal | $ | $ | ( | $ | $ | ||||||||||||||||||
State and local | ( | ||||||||||||||||||||||
Total current income tax expense (benefit) | ( | ||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||
Federal | |||||||||||||||||||||||
State and local | |||||||||||||||||||||||
Total deferred income tax expense | |||||||||||||||||||||||
Total income tax expense (benefit) | $ | $ | $ | $ |
$ in thousands except per share amounts | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | ||||||||||||||||||||||||
Total equity | $ | 7,194,684 | $ | 6,954,543 | $ | 7,010,068 | $ | 7,061,626 | $ | 7,062,998 | |||||||||||||||||||
Less: Preferred Stock Series A, B, C and D | 1,257,254 | 1,257,254 | 1,257,254 | 1,258,667 | 1,258,667 | ||||||||||||||||||||||||
Less: Noncontrolling interests of consolidated subsidiaries | 60,251 | 60,337 | 67,067 | 71,055 | 69,171 | ||||||||||||||||||||||||
Total equity attributable to common stock | $ | 5,877,179 | $ | 5,636,952 | $ | 5,685,747 | $ | 5,731,904 | $ | 5,735,160 | |||||||||||||||||||
Common stock outstanding | 483,320,606 | 483,017,747 | 473,715,100 | 473,715,100 | 466,856,753 | ||||||||||||||||||||||||
Book value per common share | $ | 12.16 | $ | 11.67 | $ | 12.00 | $ | 12.10 | $ | 12.28 |
Three Months Ended | |||||||||||||||||||||||||||||
June 30, 2023(A) | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||
Real GDP | 2.4 | % | 2.0 | % | 2.6 | % | 3.2 | % | (0.6) | % |
June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||
Unemployment rate | 3.6 | % | 3.5 | % | 3.5 | % | 3.5 | % | 3.6 | % |
June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||
10-year U.S. Treasury rate | 3.8 | % | 3.5 | % | 3.9 | % | 3.8 | % | 3.0 | % | |||||||||||||||||||
30-year fixed mortgage rate | 6.7 | % | 6.3 | % | 6.4 | % | 6.7 | % | 5.7 | % |
Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination | Servicing | MSR Related Investments | Total Origination and Servicing | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | $ | 1,824,653 | $ | 7,014,766 | $ | 1,962,023 | $ | 10,801,442 | $ | 9,701,000 | $ | 2,345,181 | $ | 1,602,571 | $ | 1,939,499 | $ | — | $ | 26,389,693 | ||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 223,222 | 513,195 | 298,632 | 1,035,049 | 268,083 | 546 | 1,000 | 49,375 | 14,972 | 1,369,025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | 41,621 | 125,706 | 71,069 | 238,396 | 4,154 | 11,849 | 21,454 | 43,912 | — | 319,765 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 159,964 | 2,371,343 | 2,526,478 | 5,057,785 | 230,001 | 100,699 | 79,106 | 119,642 | 107,164 | 5,694,397 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 11,836 | 12,540 | 5,092 | 29,468 | — | — | — | 55,731 | — | 85,199 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 2,261,296 | $ | 10,037,550 | $ | 4,863,294 | $ | 17,162,140 | $ | 10,203,238 | $ | 2,458,275 | $ | 1,704,131 | $ | 2,208,159 | $ | 122,136 | $ | 33,858,079 | ||||||||||||||||||||||||||||||||||||||||||
Debt | $ | 1,741,717 | $ | 4,255,588 | $ | 2,886,131 | $ | 8,883,436 | $ | 9,203,274 | $ | 1,923,139 | $ | 1,441,648 | $ | 1,620,937 | $ | 545,930 | $ | 23,618,364 | ||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 204,083 | 2,202,768 | 50,832 | 2,457,683 | 73,121 | 320,311 | 3,888 | 15,890 | 174,138 | 3,045,031 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 1,945,800 | 6,458,356 | 2,936,963 | 11,341,119 | 9,276,395 | 2,243,450 | 1,445,536 | 1,636,827 | 720,068 | 26,663,395 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 315,496 | 3,579,194 | 1,926,331 | 5,821,021 | 926,843 | 214,825 | 258,595 | 571,332 | (597,932) | 7,194,684 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 9,978 | — | 11,612 | 21,590 | — | — | 38,661 | — | — | 60,251 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Rithm Capital stockholders’ equity | $ | 305,518 | $ | 3,579,194 | $ | 1,914,719 | $ | 5,799,431 | $ | 926,843 | $ | 214,825 | $ | 219,934 | $ | 571,332 | $ | (597,932) | $ | 7,134,433 | ||||||||||||||||||||||||||||||||||||||||||
Investments in equity method investees | $ | — | $ | — | $ | 66,770 | $ | 66,770 | $ | — | $ | — | $ | — | $ | — | $ | 22,620 | $ | 89,390 |
Unpaid Principal Balance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | June 30, 2023 | % of Total | March 31, 2023 | % of Total | June 30, 2023 | % of Total | June 30, 2022 | % of Total | QoQ Change | YoY Change | |||||||||||||||||||||||||||||||||||||||||||||||||
Production by Channel | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct to Consumer | $ | 536 | 5 | % | $ | 445 | 6 | % | $ | 981 | 6 | % | $ | 6,589 | 14 | % | $ | 91 | $ | (5,608) | |||||||||||||||||||||||||||||||||||||||
Retail / Joint Venture | 1,826 | 18 | % | 1,410 | 20 | % | 3,236 | 19 | % | 12,507 | 28 | % | 416 | (9,271) | |||||||||||||||||||||||||||||||||||||||||||||
Wholesale | 1,369 | 14 | % | 1,128 | 16 | % | 2,497 | 15 | % | 7,843 | 17 | % | 241 | (5,346) | |||||||||||||||||||||||||||||||||||||||||||||
Correspondent | 6,197 | 63 | % | 3,988 | 58 | % | 10,185 | 60 | % | 18,992 | 41 | % | 2,209 | (8,807) | |||||||||||||||||||||||||||||||||||||||||||||
Total Production by Channel | $ | 9,928 | 100 | % | $ | 6,971 | 100 | % | $ | 16,899 | 100 | % | $ | 45,931 | 100 | % | $ | 2,957 | $ | (29,032) | |||||||||||||||||||||||||||||||||||||||
Production by Product | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency | $ | 5,713 | 58 | % | $ | 3,387 | 49 | % | $ | 9,100 | 54 | % | $ | 28,334 | 61 | % | $ | 2,326 | $ | (19,234) | |||||||||||||||||||||||||||||||||||||||
Government | 3,917 | 39 | % | 3,304 | 47 | % | 7,221 | 43 | % | 15,197 | 33 | % | 613 | (7,976) | |||||||||||||||||||||||||||||||||||||||||||||
Non-QM | 110 | 1 | % | 134 | 2 | % | 244 | 1 | % | 842 | 2 | % | (24) | (598) | |||||||||||||||||||||||||||||||||||||||||||||
Non-Agency | 69 | 1 | % | 73 | 1 | % | 142 | 1 | % | 1,262 | 3 | % | (4) | (1,120) | |||||||||||||||||||||||||||||||||||||||||||||
Other | 119 | 1 | % | 73 | 1 | % | 192 | 1 | % | 296 | 1 | % | 46 | (104) | |||||||||||||||||||||||||||||||||||||||||||||
Total Production by Product | $ | 9,928 | 100 | % | $ | 6,971 | 100 | % | $ | 16,899 | 100 | % | $ | 45,931 | 100 | % | $ | 2,957 | $ | (29,032) | |||||||||||||||||||||||||||||||||||||||
% Purchase | 87 | % | 84 | % | 86 | % | 63 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
% Refinance | 13 | % | 16 | % | 14 | % | 37 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | QoQ Change | YoY Change | |||||||||||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net(A)(B)(C)(D) | $ | 134,130 | $ | 112,822 | $ | 246,952 | $ | 709,879 | $ | 21,308 | $ | (462,927) | |||||||||||||||||||||||
Pull through adjusted lock volume | $ | 10,754,380 | $ | 7,024,010 | $ | 17,778,390 | $ | 42,203,900 | $ | 3,730,370 | $ | (24,425,510) | |||||||||||||||||||||||
Gain on originated residential mortgage loans, as a percentage of pull through adjusted lock volume, by channel: | |||||||||||||||||||||||||||||||||||
Direct to Consumer | 3.59 | % | 4.19 | % | 3.86 | % | 3.61 | % | |||||||||||||||||||||||||||
Retail / Joint Venture | 3.45 | % | 3.59 | % | 3.51 | % | 3.07 | % | |||||||||||||||||||||||||||
Wholesale | 1.50 | % | 1.60 | % | 1.55 | % | 1.01 | % | |||||||||||||||||||||||||||
Correspondent | 0.45 | % | 0.63 | % | 0.52 | % | 0.22 | % | |||||||||||||||||||||||||||
Total gain on originated residential mortgage loans, as a percentage of pull through adjusted lock volume | 1.25 | % | 1.61 | % | 1.39 | % | 1.68 | % |
Unpaid Principal Balance | ||||||||||||||||||||||||||||||||
(in millions) | June 30, 2023 | March 31, 2023 | June 30, 2022 | QoQ Change | YoY Change | |||||||||||||||||||||||||||
Performing servicing | ||||||||||||||||||||||||||||||||
MSR-owned assets | $ | 391,040 | $ | 390,706 | $ | 389,762 | $ | 334 | $ | 1,278 | ||||||||||||||||||||||
Residential whole loans | 1,967 | 1,915 | 3,832 | 52 | (1,865) | |||||||||||||||||||||||||||
Third party | — | 3 | 436 | (3) | (436) | |||||||||||||||||||||||||||
Total performing servicing | 393,007 | 392,624 | 394,030 | 383 | (1,023) | |||||||||||||||||||||||||||
Special servicing | ||||||||||||||||||||||||||||||||
MSR-owned assets | 10,588 | 10,708 | 10,138 | (120) | 450 | |||||||||||||||||||||||||||
Residential whole loans | 6,786 | 6,649 | 7,127 | 137 | (341) | |||||||||||||||||||||||||||
Third party | 95,603 | 94,067 | 86,754 | 1,536 | 8,849 | |||||||||||||||||||||||||||
Total special servicing | 112,977 | 111,424 | 104,019 | 1,553 | 8,958 | |||||||||||||||||||||||||||
Total servicing portfolio | $ | 505,984 | $ | 504,048 | $ | 498,049 | $ | 1,936 | $ | 7,935 | ||||||||||||||||||||||
Agency servicing | ||||||||||||||||||||||||||||||||
MSR-owned assets | $ | 273,990 | $ | 274,783 | $ | 279,694 | $ | (793) | $ | (5,704) | ||||||||||||||||||||||
Third party | 9,139 | 9,091 | 9,774 | 48 | (635) | |||||||||||||||||||||||||||
Total agency servicing | 283,129 | 283,874 | 289,468 | (745) | (6,339) | |||||||||||||||||||||||||||
Government-insured servicing | ||||||||||||||||||||||||||||||||
MSR-owned assets | 123,800 | 122,646 | 115,449 | 1,154 | 8,351 | |||||||||||||||||||||||||||
Total government servicing | 123,800 | 122,646 | 115,449 | 1,154 | 8,351 | |||||||||||||||||||||||||||
Non-Agency (private label) servicing | ||||||||||||||||||||||||||||||||
MSR-owned assets | 3,838 | 3,985 | 4,757 | (147) | (919) | |||||||||||||||||||||||||||
Residential whole loans | 8,753 | 8,564 | 10,959 | 189 | (2,206) | |||||||||||||||||||||||||||
Third party | 86,464 | 84,979 | 77,416 | 1,485 | 9,048 | |||||||||||||||||||||||||||
Total Non-Agency (private label) servicing | 99,055 | 97,528 | 93,132 | 1,527 | 5,923 | |||||||||||||||||||||||||||
Total servicing portfolio | $ | 505,984 | $ | 504,048 | $ | 498,049 | $ | 1,936 | $ | 7,935 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
(in thousands) | June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | QoQ Change | YoY Change | |||||||||||||||||||||||||||||
Base servicing fees | |||||||||||||||||||||||||||||||||||
MSR-owned assets | $ | 304,912 | $ | 298,959 | $ | 603,871 | $ | 550,755 | $ | 5,953 | $ | 53,116 | |||||||||||||||||||||||
Residential whole loans | 1,920 | 2,416 | 4,336 | 6,408 | (496) | (2,072) | |||||||||||||||||||||||||||||
Third party | 23,015 | 22,363 | 45,378 | 46,722 | 652 | (1,344) | |||||||||||||||||||||||||||||
Total base servicing fees | 329,847 | 323,738 | 653,585 | 603,885 | 6,109 | 49,700 | |||||||||||||||||||||||||||||
Other fees | |||||||||||||||||||||||||||||||||||
Incentive | 13,733 | 10,813 | 24,546 | 37,451 | 2,920 | (12,905) | |||||||||||||||||||||||||||||
Ancillary | 15,428 | 14,063 | 29,491 | 27,079 | 1,365 | 2,412 | |||||||||||||||||||||||||||||
Boarding | 846 | 810 | 1,656 | 3,095 | 36 | (1,439) | |||||||||||||||||||||||||||||
Total other fees(A) | 30,007 | 25,686 | 55,693 | 67,625 | 4,321 | (11,932) | |||||||||||||||||||||||||||||
Total Servicing Fees | $ | 359,854 | $ | 349,424 | $ | 709,278 | $ | 671,510 | $ | 10,430 | $ | 37,768 |
(dollars in millions) | Current UPB | Weighted Average MSR (bps) | Carrying Value | |||||||||||||||||
GSE | $ | 357,246.6 | 28 | bps | $ | 5,703.3 | ||||||||||||||
Non-Agency | 51,345.5 | 46 | 722.4 | |||||||||||||||||
Ginnie Mae | 123,799.9 | 42 | 2,262.9 | |||||||||||||||||
Total/Weighted Average | $ | 532,392.0 | 33 | bps | $ | 8,688.6 |
Collateral Characteristics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Carrying Amount | Current Principal Balance | Number of Loans | WA FICO Score(A) | WA Coupon | WA Maturity (months) | Average Loan Age (months) | Adjustable Rate Mortgage %(B) | Three Month Average CPR(C) | Three Month Average CRR(D) | Three Month Average CDR(E) | Three Month Average Recapture Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GSE | $ | 5,703,219 | $ | 357,246,649 | 1,910,408 | 755 | 3.8 | % | 276 | 56 | 1.4 | % | 6.0 | % | 5.8 | % | 0.1 | % | 6.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency | 722,415 | 51,345,436 | 467,338 | 635 | 4.4 | % | 287 | 207 | 9.7 | % | 6.8 | % | 4.7 | % | 2.1 | % | 5.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 2,262,922 | 123,799,933 | 530,658 | 693 | 3.6 | % | 325 | 32 | 0.5 | % | 6.4 | % | 6.3 | % | 0.1 | % | 10.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 8,688,556 | $ | 532,392,018 | 2,908,404 | 729 | 3.8 | % | 288 | 65 | 2.0 | % | 6.1 | % | 5.8 | % | 0.3 | % | 7.4 | % |
Collateral Characteristics | |||||||||||||||||||||||
Delinquency | Loans in Foreclosure | Real Estate Owned | Loans in Bankruptcy | ||||||||||||||||||||
90+ Days(F) | |||||||||||||||||||||||
GSE | 0.4 | % | 0.2 | % | — | % | 0.1 | % | |||||||||||||||
Non-Agency | 3.9 | % | 6.5 | % | 0.7 | % | 2.3 | % | |||||||||||||||
Ginnie Mae | 1.6 | % | 0.5 | % | — | % | 0.5 | % | |||||||||||||||
Weighted Average | 1.0 | % | 0.9 | % | 0.1 | % | 0.4 | % |
MSR Component(A) | Excess MSR | ||||||||||||||||||||||||||||||||||
Direct Excess MSRs | Current UPB (billions) (B) | Weighted Average MSR (bps) | Weighted Average Excess MSR (bps) | Interest in Excess MSR (%) | Carrying Value (millions) | ||||||||||||||||||||||||||||||
Total/Weighted Average | $ | 46.1 | 32 | bps | 20 | bps | 32.5% – 100.0% | $ | 224.6 |
MSR Component(A) | |||||||||||||||||||||||||||||||||||||||||
Excess MSRs Through Equity Method Investees | Current UPB (billions) | Weighted Average MSR (bps) | Weighted Average Excess MSR (bps) | Rithm Capital Interest in Investee (%) | Investee Interest in Excess MSR (%) | Rithm Capital Effective Ownership (%) | Investee Carrying Value (millions) | ||||||||||||||||||||||||||||||||||
Agency | 18.2 | 33 | bps | 20 | bps | 50 | % | 66.7 | % | 33.3 | % | 123.7 | |||||||||||||||||||||||||||||
Collateral Characteristics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Carrying Amount | Current Principal Balance | Number of Loans | WA FICO Score(A) | WA Coupon | WA Maturity (months) | Average Loan Age (months) | Three Month Average CPR(B) | Three Month Average CRR(C) | Three Month Average CDR(D) | Three Month Average Recapture Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average | $ | 224,632 | $ | 46,130,066 | 311,703 | 713 | 4.5 | % | 245 | 159 | 7.5 | % | 6.9 | % | 0.7 | % | 15.0 | % |
Collateral Characteristics | |||||||||||||||||||||||
Delinquency | Loans in Foreclosure | Real Estate Owned | Loans in Bankruptcy | ||||||||||||||||||||
90+ Days(E) | |||||||||||||||||||||||
Total/Weighted Average(F) | 1.5 | % | 2.8 | % | 0.7 | % | 0.3 | % |
Collateral Characteristics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Carrying Amount | Current Principal Balance | Rithm Capital Effective Ownership (%) | Number of Loans | WA FICO Score(A) | WA Coupon | WA Maturity (months) | Average Loan Age (months) | Three Month Average CPR(B) | Three Month Average CRR(C) | Three Month Average CDR(D) | Three Month Average Recapture Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average(G) | $ | 123,668 | $ | 18,193,581 | 33.3 | % | 179,666 | 724 | 4.6 | % | 225 | 120 | 7.5 | % | 7.3 | % | 0.2 | % | 22.4 | % |
Collateral Characteristics | |||||||||||||||||||||||
Delinquency | Loans in Foreclosure | Real Estate Owned | Loans in Bankruptcy | ||||||||||||||||||||
90+ Days(E) | |||||||||||||||||||||||
Total/Weighted Average(F) | 0.8 | % | 0.6 | % | 0.1 | % | 0.2 | % |
June 30, 2023 | |||||||||||||||||||||||||||||
Amortized Cost Basis | Carrying Value(A) | UPB of Underlying Residential Mortgage Loans | Outstanding Servicer Advances | Servicer Advances to UPB of Underlying Residential Mortgage Loans | |||||||||||||||||||||||||
Mr. Cooper and SLS serviced pools | $ | 371,955 | $ | 385,927 | $ | 16,235,846 | $ | 327,574 | 2.0 | % |
Weighted Average Discount Rate | Weighted Average Life (Years)(C) | Six Months Ended June 30, 2023 | Face Amount of Secured Notes and Bonds Payable | Loan-to-Value (“LTV”)(A) | Cost of Funds(B) | |||||||||||||||||||||||||||||||||||||||||||||
Change in Fair Value Recorded in Other Income (Loss) | Gross | Net(D) | Gross | Net | ||||||||||||||||||||||||||||||||||||||||||||||
Servicer advance investments(E) | 5.7 | % | 8.1 | $ | 7,900 | $ | 295,215 | 87.4 | % | 85.2 | % | 7.3 | % | 6.7 | % | |||||||||||||||||||||||||||||||||||
June 30, 2023 | ||||||||
Principal and interest advances | $ | 60,545 | ||||||
Escrow advances (taxes and insurance advances) | 146,201 | |||||||
Foreclosure advances | 120,828 | |||||||
Total | $ | 327,574 |
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Gross Unrealized | Carrying Value(A) | Count | Weighted Average Life (Years) | 3-Month CPR(B) | Outstanding Repurchase Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS | $ | 7,899,981 | $ | 7,737,530 | $ | 56,076 | $ | (23,931) | $ | 7,769,675 | 39 | 8.9 | 5.6 | % | $ | 7,646,171 | ||||||||||||||||||||||||||||||||||||||||
Treasury Bills | $ | 1,000,000 | $ | 978,982 | N/A | N/A | $ | 978,982 | 1 | 0.4 | N/A | $ | 972,255 | |||||||||||||||||||||||||||||||||||||||||||
Net Interest Spread(A) | |||||
Weighted Average Asset Yield | 5.13 | % | |||
Weighted Average Funding Cost | 5.24 | % | |||
Net Interest Spread | (0.11) | % |
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Gross Unrealized | Carrying Value(A) | Outstanding Repurchase Agreements | |||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||||||
Non-Agency RMBS | $ | 17,551,898 | $ | 927,258 | $ | 145,279 | $ | (120,194) | $ | 952,343 | $ | 584,848 |
Non-Agency RMBS Characteristics | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Securities | Outstanding Face Amount | Amortized Cost Basis | Carrying Value | Principal Subordination(A) | Excess Spread(B) | Weighted Average Life (Years) | Weighted Average Coupon(C) | |||||||||||||||||||||||||||||||||||||||||||
Total/weighted average | 683 | $ | 17,551,044 | $ | 926,758 | $ | 951,224 | 22.2 | % | 0.2 | % | 6.7 | 3.1 | % |
Collateral Characteristics | ||||||||||||||||||||||||||||||||
Average Loan Age (years) | Collateral Factor(D) | 3-Month CPR(E) | Delinquency(F) | Cumulative Losses to Date | ||||||||||||||||||||||||||||
Total/weighted average | 11.3 | 0.59 | 7.0 | % | 2.4 | % | 0.7 | % |
Net Interest Spread(A) | |||||
Weighted average asset yield | 5.01 | % | |||
Weighted average funding cost | 7.12 | % | |||
Net interest spread | (2.11) | % |
Outstanding Face Amount | Carrying Value | Loan Count | Weighted Average Yield | Weighted Average Life (Years)(A) | ||||||||||||||||||||||||||||
Total residential mortgage loans, held-for-investment, at fair value | $ | 479,193 | $ | 400,206 | 8,914 | 8.7 | % | 3.3 | ||||||||||||||||||||||||
Acquired performing loans(B) | 72,427 | 61,083 | 1,992 | 8.4 | % | 3.6 | ||||||||||||||||||||||||||
Acquired non-performing loans(C) | 28,168 | 22,862 | 336 | 8.2 | % | 2.8 | ||||||||||||||||||||||||||
Total residential mortgage loans, held-for-sale, at lower of cost or market | $ | 100,595 | $ | 83,945 | 2,328 | 8.3 | % | 3.4 | ||||||||||||||||||||||||
Acquired performing loans(B)(D) | $ | 968,911 | $ | 933,849 | 3,414 | 6.5 | % | 10.8 | ||||||||||||||||||||||||
Acquired non-performing loans(C)(D) | 237,335 | 216,219 | 1,236 | 4.6 | % | 19.2 | ||||||||||||||||||||||||||
Originated loans | 1,838,139 | 1,858,654 | 6,479 | 6.4 | % | 29.4 | ||||||||||||||||||||||||||
Total residential mortgage loans, held-for-sale, at fair value | $ | 3,044,385 | $ | 3,008,722 | 11,129 | 6.3 | % | 22.7 |
Collateral Characteristics | |||||||||||||||||||||||||||||||||||||||||||||||||||||
UPB | Number of Loans | Weighted Average Coupon | Adjustable Rate Loan % | Average Loan Age (months) | Average Expected Life (Months) | Delinquency 90+ Days(A) | 12-Month CRR(B) | 12-Month CDR(C) | |||||||||||||||||||||||||||||||||||||||||||||
SpringCastle | $ | 291,564 | 48,956 | 18.0 | % | 14.1 | % | 219 | 42 | 1.5 | % | 18.3 | % | 4.2 | % | ||||||||||||||||||||||||||||||||||||||
Marcus | $ | 1,360,425 | 100,855 | 10.7 | % | 0.0 | % | 13 | 16 | 0.0 | % | 10.0 | % | 0.0 | % | ||||||||||||||||||||||||||||||||||||||
Consumer loans | $ | 1,651,989 | 149,811 | 12.0 | % | 2.5 | % | 67 | 21 | 0.3 | % | 11.5 | % | 0.7 | % |
Number of SFR Properties | % of Total SFR Properties | Net Book Value | % of Total Net Book Value | Average Gross Book Value per Property | % of Rented SFR Properties | Average Monthly Rent | Average Sq. Ft. | ||||||||||||||||||||||||||||||||||||||||
Alabama | 96 | 2.6 | % | $ | 18,029 | 1.9 | % | $ | 188 | 88.5 | % | $ | 1,522 | 1,578 | |||||||||||||||||||||||||||||||||
Arizona | 149 | 4.0 | % | 58,185 | 6.0 | % | 391 | 91.2 | % | 2,020 | 1,535 | ||||||||||||||||||||||||||||||||||||
Florida | 840 | 22.6 | % | 225,257 | 23.3 | % | 268 | 91.9 | % | 1,899 | 1,429 | ||||||||||||||||||||||||||||||||||||
Georgia | 757 | 20.3 | % | 179,155 | 18.6 | % | 237 | 84.7 | % | 1,823 | 1,769 | ||||||||||||||||||||||||||||||||||||
Indiana | 120 | 3.2 | % | 26,269 | 2.7 | % | 219 | 85.0 | % | 1,620 | 1,625 | ||||||||||||||||||||||||||||||||||||
Mississippi | 132 | 3.5 | % | 23,953 | 2.5 | % | 181 | 93.9 | % | 1,627 | 1,652 | ||||||||||||||||||||||||||||||||||||
Missouri | 362 | 9.7 | % | 71,871 | 7.4 | % | 199 | 86.7 | % | 1,567 | 1,407 | ||||||||||||||||||||||||||||||||||||
Nevada | 109 | 2.9 | % | 36,108 | 3.7 | % | 331 | 89.9 | % | 1,853 | 1,456 | ||||||||||||||||||||||||||||||||||||
North Carolina | 445 | 11.9 | % | 129,579 | 13.4 | % | 291 | 91.4 | % | 1,794 | 1,542 | ||||||||||||||||||||||||||||||||||||
Oklahoma | 55 | 1.5 | % | 12,473 | 1.3 | % | 227 | 85.5 | % | 1,522 | 1,618 | ||||||||||||||||||||||||||||||||||||
Tennessee | 88 | 2.4 | % | 29,487 | 3.1 | % | 335 | 94.3 | % | 1,973 | 1,500 | ||||||||||||||||||||||||||||||||||||
Texas | 569 | 15.3 | % | 154,315 | 16.0 | % | 271 | 88.9 | % | 1,940 | 1,811 | ||||||||||||||||||||||||||||||||||||
Other U.S. | 2 | 0.1 | % | 513 | 0.1 | % | 257 | 50.0 | % | 1,763 | 1,577 | ||||||||||||||||||||||||||||||||||||
Total/Weighted Average | 3,724 | 100.0 | % | $ | 965,194 | 100.0 | % | $ | 259 | 88.8 | % | $ | 1,816 | 1,595 |
Loans originated | $ | 926,959 | |||
Loans repaid(A) | $ | 1,065,291 | |||
Number of loans originated | 540 | ||||
Unpaid principal balance | $ | 1,939,499 | |||
Total commitment | $ | 2,607,686 | |||
Average total commitment | $ | 2,300 | |||
Weighted average contractual interest(B) | 10.7 | % |
Number of Loans | % | Total Commitment | % | Weighted Average Committed Loan Balance to Value(A) | ||||||||||||||||||||||||||||
Construction | 460 | 40.5 | % | $ | 1,526,899 | 58.6 | % | 76.0% / 64.0% | ||||||||||||||||||||||||
Bridge | 469 | 41.4 | % | 839,882 | 32.2 | % | 71.1% | |||||||||||||||||||||||||
Renovation | 205 | 18.1 | % | 240,905 | 9.2 | % | 78.0% / 64.9% | |||||||||||||||||||||||||
Total | 1,134 | 100.0 | % | $ | 2,607,686 | 100.0 | % |
Number of Loans | % | Total Commitment | % | |||||||||||||||||||||||
California | 536 | 47.3 | % | $ | 1,368,948 | 52.5 | % | |||||||||||||||||||
Washington | 104 | 9.2 | % | 232,962 | 8.9 | % | ||||||||||||||||||||
New York | 40 | 3.5 | % | 186,163 | 7.1 | % | ||||||||||||||||||||
Colorado | 67 | 5.9 | % | 179,393 | 6.9 | % | ||||||||||||||||||||
Florida | 79 | 7.0 | % | 138,127 | 5.3 | % | ||||||||||||||||||||
Arizona | 51 | 4.5 | % | 119,866 | 4.6 | % | ||||||||||||||||||||
Illinois | 13 | 1.1 | % | 66,325 | 2.5 | % | ||||||||||||||||||||
North Carolina | 44 | 3.9 | % | 57,277 | 2.2 | % | ||||||||||||||||||||
Texas | 25 | 2.2 | % | 45,826 | 1.8 | % | ||||||||||||||||||||
New Jersey | 31 | 2.7 | % | 43,371 | 1.7 | % | ||||||||||||||||||||
Other U.S. | 144 | 12.7 | % | 169,428 | 6.5 | % | ||||||||||||||||||||
Total | 1,134 | 100.0 | % | $ | 2,607,686 | 100.0 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | QoQ Change | YoY Change | ||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | 465,562 | $ | 469,839 | $ | 935,401 | $ | 925,878 | $ | (4,277) | $ | 9,523 | |||||||||||||||||||||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(139,410), $(105,691), $(245,101), and $(380,590), respectively) | 22,032 | (142,304) | (120,272) | 909,454 | 164,336 | (1,029,726) | |||||||||||||||||||||||||||||
Servicing revenue, net | 487,594 | 327,535 | 815,129 | 1,835,332 | 160,059 | (1,020,203) | |||||||||||||||||||||||||||||
Interest income | 398,786 | 346,614 | 745,400 | 437,061 | 52,172 | 308,339 | |||||||||||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net | 151,822 | 109,268 | 261,090 | 776,787 | 42,554 | (515,697) | |||||||||||||||||||||||||||||
1,038,202 | 783,417 | 1,821,619 | 3,049,180 | 254,785 | (1,227,561) | ||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||
Interest expense and warehouse line fees | 329,158 | 309,068 | 638,226 | 289,662 | 20,090 | 348,564 | |||||||||||||||||||||||||||||
General and administrative | 181,508 | 167,155 | 348,663 | 471,509 | 14,353 | (122,846) | |||||||||||||||||||||||||||||
Compensation and benefits | 189,606 | 188,880 | 378,486 | 732,277 | 726 | (353,791) | |||||||||||||||||||||||||||||
Management fee | — | — | — | 46,174 | — | (46,174) | |||||||||||||||||||||||||||||
Termination fee to affiliate | — | — | — | 400,000 | — | (400,000) | |||||||||||||||||||||||||||||
700,272 | 665,103 | 1,365,375 | 1,939,622 | 35,169 | (574,247) | ||||||||||||||||||||||||||||||
Other Income (Loss) | |||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) on investments, net | 89,425 | (75,649) | 13,776 | (222,537) | 165,074 | 236,313 | |||||||||||||||||||||||||||||
Other income (loss), net | 15,860 | 30,478 | 46,338 | 111,720 | (14,618) | (65,382) | |||||||||||||||||||||||||||||
105,285 | (45,171) | 60,114 | (110,817) | 150,456 | 170,931 | ||||||||||||||||||||||||||||||
Income Before Income Taxes | 443,215 | 73,143 | 516,358 | 998,741 | 370,072 | (482,383) | |||||||||||||||||||||||||||||
Income tax expense (benefit) | 56,530 | (16,806) | 39,724 | 275,479 | 73,336 | (235,755) | |||||||||||||||||||||||||||||
Net Income | $ | 386,685 | $ | 89,949 | $ | 476,634 | $ | 723,262 | $ | 296,736 | $ | (246,628) | |||||||||||||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 6,889 | (1,300) | 5,589 | 19,791 | 8,189 | (14,202) | |||||||||||||||||||||||||||||
Dividends on preferred stock | 22,395 | 22,395 | 44,790 | 44,888 | — | (98) | |||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Common Stockholders | $ | 357,401 | $ | 68,854 | $ | 426,255 | $ | 658,583 | $ | 288,547 | $ | (232,328) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | QoQ Change | YoY Change | ||||||||||||||||||||||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | 432,965 | $ | 439,232 | $ | 872,197 | $ | 856,344 | $ | (6,267) | $ | 15,853 | |||||||||||||||||||||||
Ancillary and other fees | 32,597 | 30,607 | 63,204 | 69,534 | 1,990 | (6,330) | |||||||||||||||||||||||||||||
Servicing fee revenue and fees | 465,562 | 469,839 | 935,401 | 925,878 | (4,277) | 9,523 | |||||||||||||||||||||||||||||
Change in fair value due to: | |||||||||||||||||||||||||||||||||||
Realization of cash flows | (139,410) | (105,691) | (245,101) | (380,590) | (33,719) | 135,489 | |||||||||||||||||||||||||||||
Change in valuation inputs and assumptions, net of realized gains (losses)(A) | 161,442 | (36,613) | 124,829 | 1,359,669 | 198,055 | (1,234,840) | |||||||||||||||||||||||||||||
Change in fair value of derivative instruments | — | — | — | 7,189 | — | (7,189) | |||||||||||||||||||||||||||||
Gain (loss) on settlement of derivative instruments | — | — | — | (76,814) | — | 76,814 | |||||||||||||||||||||||||||||
Servicing revenue, net | $ | 487,594 | $ | 327,535 | $ | 815,129 | $ | 1,835,332 | $ | 160,059 | $ | (1,020,203) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | QoQ Change | YoY Change | ||||||||||||||||||||||||||||||
Changes in interest and prepayment rates | $ | 342,527 | $ | (237,028) | $ | 105,499 | $ | 1,707,142 | $ | 579,555 | $ | (1,601,643) | |||||||||||||||||||||||
Changes in discount rates | (80,826) | 189,603 | 108,777 | (131,046) | (270,429) | 239,823 | |||||||||||||||||||||||||||||
Changes in other factors | (100,259) | 10,812 | (89,447) | (216,427) | (111,071) | 126,980 | |||||||||||||||||||||||||||||
Change in valuation and assumptions | $ | 161,442 | $ | (36,613) | $ | 124,829 | $ | 1,359,669 | $ | 198,055 | $ | (1,234,840) |
Unpaid Principal Balance | |||||||||||||||||||||||||||||
(dollars in millions) | June 30, 2023 | March 31, 2023 | June 30, 2022 | QoQ Change | YoY Change | ||||||||||||||||||||||||
GSE | $ | 357,247 | $ | 360,605 | $ | 374,752 | $ | (3,358) | $ | (17,505) | |||||||||||||||||||
Non-Agency | 51,345 | 52,614 | 57,261 | (1,269) | (5,916) | ||||||||||||||||||||||||
Ginnie Mae | 123,800 | 122,646 | 116,083 | 1,154 | 7,717 | ||||||||||||||||||||||||
Total | $ | 532,392 | $ | 535,865 | $ | 548,096 | $ | (3,473) | $ | (15,704) |
Unpaid Principal Balance | |||||||||||||||||||||||||||||
(dollars in millions) | June 30, 2023 | March 31, 2023 | June 30, 2022 | QoQ Change | YoY Change | ||||||||||||||||||||||||
Performing Servicing | $ | 393,007 | $ | 392,624 | $ | 394,030 | $ | 383 | $ | (1,023) | |||||||||||||||||||
Special Servicing | 112,977 | 111,424 | 104,019 | 1,553 | 8,958 | ||||||||||||||||||||||||
Total Servicing Portfolio | $ | 505,984 | $ | 504,048 | $ | 498,049 | $ | 1,936 | $ | 7,935 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(dollars in thousands) | June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | |||||||||||||||||||
Pull through adjusted lock volume | $ | 10,754,380 | $ | 7,024,010 | $ | 17,778,390 | $ | 42,203,900 | |||||||||||||||
Gain on originated residential mortgage loans, as a percentage of pull through adjusted lock volume, by channel: | |||||||||||||||||||||||
Direct to Consumer | 3.59 | % | 4.19 | % | 3.86 | % | 3.61 | % | |||||||||||||||
Retail / Joint Venture | 3.45 | % | 3.59 | % | 3.51 | % | 3.07 | % | |||||||||||||||
Wholesale | 1.50 | % | 1.60 | % | 1.55 | % | 1.01 | % | |||||||||||||||
Correspondent | 0.45 | % | 0.63 | % | 0.52 | % | 0.22 | % | |||||||||||||||
Total gain on originated residential mortgage loans, as a percentage of pull through adjusted lock volume | 1.25 | % | 1.61 | % | 1.39 | % | 1.68 | % |
Unpaid Principal Balance | |||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
(in millions) | June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | QoQ Change | YoY Change | |||||||||||||||||||||||||||||
Production by Channel | |||||||||||||||||||||||||||||||||||
Direct to Consumer | $ | 536 | $ | 445 | $ | 981 | $ | 6,589 | $ | 91 | $ | (5,608) | |||||||||||||||||||||||
Retail / Joint Venture | 1,826 | 1,410 | 3,236 | 12,507 | 416 | (9,271) | |||||||||||||||||||||||||||||
Wholesale | 1,369 | 1,128 | 2,497 | 7,843 | 241 | (5,346) | |||||||||||||||||||||||||||||
Correspondent | 6,197 | 3,988 | 10,185 | 18,992 | 2,209 | (8,807) | |||||||||||||||||||||||||||||
Total Production by Channel | $ | 9,928 | $ | 6,971 | $ | 16,899 | $ | 45,931 | $ | 2,957 | $ | (29,032) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | QoQ Change | YoY Change | ||||||||||||||||||||||||||||||
Legal and professional | $ | 21,385 | $ | 12,755 | $ | 34,140 | $ | 49,408 | $ | 8,630 | $ | (15,268) | |||||||||||||||||||||||
Loan origination | 12,323 | 11,757 | 24,080 | 74,916 | 566 | (50,836) | |||||||||||||||||||||||||||||
Occupancy | 16,382 | 18,366 | 34,748 | 58,663 | (1,984) | (23,915) | |||||||||||||||||||||||||||||
Subservicing | 40,625 | 35,256 | 75,881 | 88,795 | 5,369 | (12,914) | |||||||||||||||||||||||||||||
Loan servicing | 2,520 | 2,976 | 5,496 | 10,170 | (456) | (4,674) | |||||||||||||||||||||||||||||
Property and maintenance | 23,935 | 24,035 | 47,970 | 45,711 | (100) | 2,259 | |||||||||||||||||||||||||||||
Other | 64,338 | 62,010 | 126,348 | 143,846 | 2,328 | (17,498) | |||||||||||||||||||||||||||||
Total | $ | 181,508 | $ | 167,155 | $ | 348,663 | $ | 471,509 | $ | 14,353 | $ | (122,846) |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | QoQ Change | YoY Change | |||||||||||||||||||||||||||||||||
Real estate and other securities | $ | (122,578) | $ | 83,851 | $ | (38,727) | $ | (1,104,587) | $ | (206,429) | $ | 1,065,860 | ||||||||||||||||||||||||||
Residential mortgage loans and REO | (10,123) | 18,097 | 7,974 | (131,619) | (28,220) | 139,593 | ||||||||||||||||||||||||||||||||
Derivative instruments | 215,952 | (151,006) | 64,946 | 1,038,565 | 366,958 | (973,619) | ||||||||||||||||||||||||||||||||
Other(A) | 6,174 | (26,591) | (20,417) | (24,896) | 32,765 | 4,479 | ||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) on investments, net | 89,425 | (75,649) | 13,776 | (222,537) | 165,074 | 236,313 | ||||||||||||||||||||||||||||||||
Unrealized gain (loss) on secured notes and bonds payable | 4,549 | (2,500) | 2,049 | 35,151 | 7,049 | (33,102) | ||||||||||||||||||||||||||||||||
Rental revenue | 17,743 | 18,123 | 35,866 | 20,402 | (380) | 15,464 | ||||||||||||||||||||||||||||||||
Property and maintenance revenue | 33,117 | 33,637 | 66,754 | 66,340 | (520) | 414 | ||||||||||||||||||||||||||||||||
(Provision) reversal for credit losses on securities | (2,035) | 1,228 | (807) | (2,885) | (3,263) | 2,078 | ||||||||||||||||||||||||||||||||
Valuation and credit loss (provision) reversal on loans and real estate owned | (3,777) | 1,575 | (2,202) | (4,643) | (5,352) | 2,441 | ||||||||||||||||||||||||||||||||
Other income (loss) | (33,737) | (21,585) | (55,322) | (2,645) | (12,152) | (52,677) | ||||||||||||||||||||||||||||||||
Other income (loss), net | 15,860 | 30,478 | 46,338 | 111,720 | (14,618) | (65,382) | ||||||||||||||||||||||||||||||||
Total other income (loss) | $ | 105,285 | $ | (45,171) | $ | 60,114 | $ | (110,817) | $ | 150,456 | $ | 170,931 |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateral | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations/Collateral(C) | Outstanding Face Amount | Carrying Value(A) | Final Stated Maturity(B) | Weighted Average Funding Cost | Weighted Average Life (Years) | Outstanding Face | Amortized Cost Basis | Carrying Value | Weighted Average Life (Years) | Carrying Value(A) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Financing Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase Agreements: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warehouse Credit Facilities-Residential Mortgage Loans(F) | $ | 2,446,085 | $ | 2,445,472 | Jul-23 to Jan-25 | 6.6 | % | 0.5 | $ | 2,837,968 | $ | 2,886,669 | $ | 2,792,211 | 17.1 | $ | 2,606,004 | |||||||||||||||||||||||||||||||||||||||||||||
Warehouse Credit Facilities-Mortgage Loans Receivable(E) | 1,108,682 | 1,108,682 | Dec-23 to May-24 | 7.9 | % | 0.3 | 1,328,445 | 1,328,445 | 1,328,445 | 1.0 | 1,220,662 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS and Treasury(D) | 8,618,426 | 8,618,426 | Jul-23 to Feb-24 | 5.3 | % | 0.3 | 8,899,981 | 8,716,511 | 8,748,656 | 8.0 | 6,821,788 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency RMBS(E) | 584,848 | 584,848 | Jul-23 to Oct-27 | 7.1 | % | 1.0 | 14,020,165 | 900,002 | 920,969 | 5.9 | 609,282 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Secured Financing Agreements | 12,758,041 | 12,757,428 | 5.9 | % | 0.4 | 11,257,736 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Notes and Bonds Payable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excess MSRs(G) | 202,663 | 202,663 | Aug-25 | 3.7 | % | 2.1 | 64,323,647 | 242,967 | 286,573 | 6.1 | 227,596 | |||||||||||||||||||||||||||||||||||||||||||||||||||
MSRs(H) | 4,305,473 | 4,295,903 | Jan-24 to Mar-28 | 6.6 | % | 2.3 | 524,360,256 | 6,473,508 | 8,614,954 | 7.4 | 4,791,543 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advance Investments(I) | 295,215 | 294,398 | Aug-23 to Mar-24 | 7.3 | % | 0.7 | 327,574 | 371,955 | 385,927 | 8.2 | 318,445 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advances(I) | 2,134,039 | 2,133,531 | Aug-23 to Nov-26 | 4.5 | % | 0.6 | 2,526,703 | 2,447,918 | 2,447,918 | 0.7 | 2,361,259 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Mortgage Loans(J) | 650,000 | 650,000 | May-24 | 6.0 | % | 0.9 | 655,807 | 661,185 | 667,699 | 29.0 | 769,988 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Loans(K) | 1,476,880 | 1,441,648 | Jun-28 to Sep 37 | 9.3 | % | 4.7 | 1,651,989 | 1,587,232 | 1,602,571 | 1.8 | 299,498 | |||||||||||||||||||||||||||||||||||||||||||||||||||
SFR Properties | 827,339 | 784,608 | Mar-26 to Sep-27 | 4.2 | % | 3.8 | N/A | 958,104 | 958,104 | N/A | 817,695 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans Receivable | 524,062 | 512,255 | Jul 26 to Dec-26 | 5.6 | % | 3.3 | 560,721 | 560,721 | 560,721 | 0.6 | 512,919 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Secured Notes and Bonds Payable | 10,415,671 | 10,315,006 | 6.2 | % | 2.3 | 10,098,943 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/ Weighted Average | $ | 23,173,712 | $ | 23,072,434 | 6.0 | % | 1.2 | $ | 21,356,679 |
Six Months Ended June 30, 2023 | |||||||||||||||||||||||
Outstanding Balance at June 30, 2023 | Average Daily Amount Outstanding(A) | Maximum Amount Outstanding | Weighted Average Daily Interest Rate | ||||||||||||||||||||
Secured Financing Agreements | |||||||||||||||||||||||
Agency RMBS | $ | 8,618,426 | $ | 7,798,599 | $ | 8,637,007 | 4.92 | % | |||||||||||||||
Non-Agency RMBS | 584,848 | 593,023 | 612,629 | 6.82 | % | ||||||||||||||||||
Residential mortgage loans | 2,190,699 | 1,922,920 | 2,551,584 | 6.47 | % | ||||||||||||||||||
Secured Notes and Bonds Payable | |||||||||||||||||||||||
MSRs | 517,000 | 661,337 | 767,000 | 8.08 | % | ||||||||||||||||||
Servicer Advances | 2,226,879 | 1,946,342 | 2,353,704 | 3.44 | % | ||||||||||||||||||
Residential mortgage loans | 650,000 | 623,228 | 749,905 | 5.75 | % | ||||||||||||||||||
Total/weighted average | $ | 14,787,852 | $ | 13,545,449 | $ | 15,671,829 | 5.15 | % |
Average Daily Amount Outstanding(A) | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||
Secured Financing Agreements | ||||||||||||||||||||||||||
Agency RMBS | $ | 7,787,408 | $ | 7,514,693 | $ | 8,408,051 | $ | 8,200,636 | ||||||||||||||||||
Non-Agency RMBS | 1,962,669 | 604,806 | 615,830 | 613,057 | ||||||||||||||||||||||
Residential mortgage loans and REO | 2,062,667 | 1,751,530 | 1,726,716 | 3,610,003 | ||||||||||||||||||||||
Year | Price | |||||||
2023 | 101.563% | |||||||
2024 and thereafter | 100.000% |
Year Ending | Nonrecourse(A) | Recourse(B) | Total | |||||||||||||||||
July 1 through December 31, 2023 | $ | 1,204,448 | $ | 11,089,405 | $ | 12,293,853 | ||||||||||||||
2024 | 1,949,664 | 3,387,298 | 5,336,962 | |||||||||||||||||
2025 | — | 1,655,367 | 1,655,367 | |||||||||||||||||
2026 | — | 1,736,959 | 1,736,959 | |||||||||||||||||
2027 | 728,691 | 245,000 | 973,691 | |||||||||||||||||
2028 and thereafter | 1,476,880 | 250,000 | 1,726,880 | |||||||||||||||||
$ | 5,359,683 | $ | 18,364,029 | $ | 23,723,712 |
Debt Obligations / Collateral | Borrowing Capacity | Balance Outstanding | Available Financing(A) | |||||||||||||||||
Secured Financing Agreements | ||||||||||||||||||||
Residential mortgage loans and REO | $ | 5,398,330 | $ | 2,034,184 | $ | 3,364,146 | ||||||||||||||
Loan origination | 7,421,000 | 1,520,582 | 5,900,418 | |||||||||||||||||
Secured Notes and Bonds Payable | ||||||||||||||||||||
Excess MSRs | 286,380 | 202,662 | 83,718 | |||||||||||||||||
MSRs | 7,155,473 | 4,305,473 | 2,850,000 | |||||||||||||||||
Servicer advances | 3,595,000 | 2,429,254 | 1,165,746 | |||||||||||||||||
Residential mortgage loans | 290,715 | 189,364 | 101,351 | |||||||||||||||||
$ | 24,146,898 | $ | 10,681,519 | $ | 13,465,379 |
Dividends Declared per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series | June 30, 2023 | December 31, 2022 | Liquidation Preference(A) | Issuance Discount | Carrying Value(B) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Series A, 7.50% issued July 2019(C) | 6,200 | 6,200 | $ | 155,002 | 3.15 | % | $ | 149,822 | $ | 0.47 | $ | 0.47 | $ | 0.94 | $ | 0.94 | ||||||||||||||||||||||||||||||||||||||||
Series B, 7.125% issued August 2019(C) | 11,261 | 11,261 | 281,518 | 3.15 | % | 272,654 | 0.45 | 0.45 | 0.89 | 0.89 | ||||||||||||||||||||||||||||||||||||||||||||||
Series C, 6.375% issued February 2020(C) | 15,903 | 15,903 | 397,584 | 3.15 | % | 385,289 | 0.40 | 0.40 | 0.80 | 0.80 | ||||||||||||||||||||||||||||||||||||||||||||||
Series D, 7.00%, issued September 2021(D) | 18,600 | 18,600 | 465,000 | 3.15 | % | 449,489 | 0.44 | 0.44 | 0.88 | 0.88 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | 51,964 | 51,964 | $ | 1,299,104 | $ | 1,257,254 | $ | 1.76 | $ | 1.76 | $ | 3.51 | $ | 3.51 |
Held by Former Manager | 21,471,990 | ||||
Issued to the independent directors | 2,000 | ||||
Total | 21,473,990 |
Common Dividends Declared for the Period Ended | Paid/Payable | Amount Per Share | ||||||||||||
March 31, 2022 | April 2022 | $ | 0.25 | |||||||||||
June 30, 2022 | July 2022 | 0.25 | ||||||||||||
September 30, 2022 | October 2022 | 0.25 | ||||||||||||
December 31, 2022 | January 2023 | 0.25 | ||||||||||||
March 31, 2023 | April 2023 | 0.25 | ||||||||||||
June 30, 2023 | July 2023 | 0.25 |
Six Months Ended June 30, | ||||||||||||||||||||
2023 | 2022 | Change | ||||||||||||||||||
Beginning of period — cash, cash equivalents and restricted cash | $ | 1,617,634 | $ | 1,528,442 | $ | 89,192 | ||||||||||||||
Net cash provided by (used in) operating activities | 1,232,246 | 5,355,298 | (4,123,052) | |||||||||||||||||
Net cash provided by (used in) investing activities | (826,689) | 465,332 | (1,292,021) | |||||||||||||||||
Net cash provided by (used in) financing activities | (334,401) | (5,404,264) | 5,069,863 | |||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 71,156 | 416,366 | (345,210) | |||||||||||||||||
End of period — cash, cash equivalents and restricted cash | $ | 1,688,790 | $ | 1,944,808 | $ | (256,018) |
Estimated Change in Book Value (in millions) (A) | ||||||||||||||
Interest rate change (bps) | June 30, 2023 | December 31, 2022 | ||||||||||||
+50bps | +314.6 | +403.4 | ||||||||||||
+25bps | +158.9 | +203.3 | ||||||||||||
-25bps | -158.9 | -203.3 | ||||||||||||
-50bps | -322.7 | -411.5 |
Estimated Change in Book Value (in millions) (A) | ||||||||||||||
Mortgage basis change (bps) | June 30, 2023 | December 31, 2022 | ||||||||||||
+20bps | +14.0 | +0.9 | ||||||||||||
+10bps | +7.2 | +0.6 | ||||||||||||
-10bps | -7.2 | -0.6 | ||||||||||||
-20bps | -14.9 | -1.8 |
Fair value at June 30, 2023 | $ | 5,703,219 | ||||||||||||||||||||||||
Discount rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
Estimated fair value | $ | 6,144,483 | $ | 5,915,750 | $ | 5,505,165 | $ | 5,320,389 | ||||||||||||||||||
Change in estimated fair value: | ||||||||||||||||||||||||||
Amount | $ | 441,264 | $ | 212,531 | $ | (198,054) | $ | (382,830) | ||||||||||||||||||
Percentage | 7.7 | % | 3.7 | % | (3.5) | % | (6.7) | % | ||||||||||||||||||
Prepayment rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
Estimated fair value | $ | 5,968,039 | $ | 5,830,194 | $ | 5,589,925 | $ | 5,488,331 | ||||||||||||||||||
Change in estimated fair value: | ||||||||||||||||||||||||||
Amount | $ | 264,820 | $ | 126,975 | $ | (113,294) | $ | (214,888) | ||||||||||||||||||
Percentage | 4.6 | % | 2.2 | % | (2.0) | % | (3.8) | % | ||||||||||||||||||
Delinquency rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
Estimated fair value | $ | 5,795,070 | $ | 5,752,835 | $ | 5,646,473 | $ | 5,583,270 | ||||||||||||||||||
Change in estimated fair value: | ||||||||||||||||||||||||||
Amount | $ | 91,851 | $ | 49,616 | $ | (56,746) | $ | (119,949) | ||||||||||||||||||
Percentage | 1.6 | % | 0.9 | % | (1.0) | % | (2.1) | % | ||||||||||||||||||
Fair value at June 30, 2023 | $ | 722,415 | ||||||||||||||||||||||||
Discount rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
Estimated fair value | $ | 795,069 | $ | 757,095 | $ | 690,644 | $ | 661,454 | ||||||||||||||||||
Change in estimated fair value: | ||||||||||||||||||||||||||
Amount | $ | 72,654 | $ | 34,680 | $ | (31,771) | $ | (60,961) | ||||||||||||||||||
Percentage | 10.1 | % | 4.8 | % | (4.4) | % | (8.4) | % | ||||||||||||||||||
Prepayment rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
Estimated fair value | $ | 764,577 | $ | 742,921 | $ | 702,935 | $ | 684,379 | ||||||||||||||||||
Change in estimated fair value: | ||||||||||||||||||||||||||
Amount | $ | 42,162 | $ | 20,506 | $ | (19,480) | $ | (38,036) | ||||||||||||||||||
Percentage | 5.8 | % | 2.8 | % | (2.7) | % | (5.3) | % | ||||||||||||||||||
Delinquency rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
Estimated fair value | $ | 753,434 | $ | 738,695 | $ | 704,775 | $ | 685,950 | ||||||||||||||||||
Change in estimated fair value: | ||||||||||||||||||||||||||
Amount | $ | 31,019 | $ | 16,280 | $ | (17,640) | $ | (36,465) | ||||||||||||||||||
Percentage | 4.3 | % | 2.3 | % | (2.4) | % | (5.0) | % | ||||||||||||||||||
Fair value at June 30, 2023 | $ | 2,262,922 | ||||||||||||||||||||||||
Discount rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
Estimated fair value | $ | 2,432,035 | $ | 2,344,396 | $ | 2,187,016 | $ | 2,116,147 | ||||||||||||||||||
Change in estimated fair value: | ||||||||||||||||||||||||||
Amount | $ | 169,113 | $ | 81,474 | $ | (75,906) | $ | (146,775) | ||||||||||||||||||
Percentage | 7.5 | % | 3.6 | % | (3.4) | % | (6.5) | % | ||||||||||||||||||
Prepayment rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
Estimated fair value | $ | 2,385,837 | $ | 2,321,363 | $ | 2,208,488 | $ | 2,157,918 | ||||||||||||||||||
Change in estimated fair value: | ||||||||||||||||||||||||||
Amount | $ | 122,915 | $ | 58,441 | $ | (54,434) | $ | (105,004) | ||||||||||||||||||
Percentage | 5.4 | % | 2.6 | % | (2.4) | % | (4.6) | % | ||||||||||||||||||
Delinquency rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
Estimated fair value | $ | 2,470,272 | $ | 2,371,522 | $ | 2,146,202 | $ | 2,023,223 | ||||||||||||||||||
Change in estimated fair value: | ||||||||||||||||||||||||||
Amount | $ | 207,350 | $ | 108,600 | $ | (116,720) | $ | (239,699) | ||||||||||||||||||
Percentage | 9.2 | % | 4.8 | % | (5.2) | % | (10.6) | % | ||||||||||||||||||
Exhibit Number | Exhibit Description | |||||||
Agreement and Plan of Merger, dated as of July 23, 2023, by and among Rithm Capital Corp., Sculptor Capital Management, Inc., Sculptor Capital LP, Sculptor Capital Advisors LP, Sculptor Capital Advisors II LP, Calder Sub, Inc., Calder Sub I, LP, Calder Sub II, LP, and Calder Sub III, LP (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K, filed July 24, 2023) | ||||||||
Rithm Capital Corp. 2023 Omnibus Incentive Plan, adopted as of May 25, 2023 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed May 30, 2023) | ||||||||
Certification of Chief Executive Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of Chief Financial Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
Voting Agreement, dated as of July 23, 2023, by and between Rithm Capital Corp. and James Levin (incorporated by reference to Exhibit 99.2 to the Company’s Current Report on Form 8-K, filed July 24, 2023) | ||||||||
Voting Agreement, dated as of July 23, 2023, by and between Rithm Capital Corp. and Wayne Cohen (incorporated by reference to Exhibit 99.3 to the Company’s Current Report on Form 8-K, filed July 24, 2023) | ||||||||
Voting Agreement, dated as of July 23, 2023, by and between Rithm Capital Corp. and Brett Klein (incorporated by reference to Exhibit 99.4 to the Company’s Current Report on Form 8-K, filed July 24, 2023) | ||||||||
Voting Agreement, dated as of July 23, 2023, by and between Rithm Capital Corp. and Peter Wallach (incorporated by reference to Exhibit 99.5 to the Company’s Current Report on Form 8-K, filed July 24, 2023) | ||||||||
101 | The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Comprehensive Operations; (iii) Consolidated Statements of Changes in Stockholders’ Equity; (iv) Consolidated Statements of Cash Flows; and (v) Notes to Consolidated Financial Statements | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
+ | Indicates a management contract or compensatory plan or arrangement | |||||||
† | Portions of this exhibit have been omitted. | |||||||
* | Exhibit filed herewith. | |||||||
** | Exhibit furnished herewith. | |||||||
# | Portions of this exhibit have been omitted pursuant to a request for confidential treatment. |
RITHM CAPITAL CORP. | ||||||||
By: | /s/ Michael Nierenberg | |||||||
Michael Nierenberg | ||||||||
Chief Executive Officer and President | ||||||||
(Principal Executive Officer) | ||||||||
August 4, 2023 | ||||||||
By: | /s/ Nicola Santoro, Jr. | |||||||
Nicola Santoro, Jr. | ||||||||
Chief Financial Officer and Treasurer | ||||||||
(Principal Financial Officer) | ||||||||
August 4, 2023 | ||||||||
1. | I have reviewed this quarterly report on Form 10-Q of Rithm Capital Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
August 4, 2023 | /s/ Michael Nierenberg | ||||
Michael Nierenberg | |||||
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Rithm Capital Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
August 4, 2023 | /s/ Nicola Santoro, Jr. | ||||
Nicola Santoro, Jr. | |||||
Chief Financial Officer |
August 4, 2023 | /s/ Michael Nierenberg | ||||
Michael Nierenberg | |||||
Chief Executive Officer |
August 4, 2023 | /s/ Nicola Santoro, Jr. | ||||
Nicola Santoro, Jr. | |||||
Chief Financial Officer |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
||
---|---|---|---|---|
Real estate and other securities | $ 8,722,018 | $ 8,289,277 | ||
Residential mortgage loans, held-for-sale, at fair value | 3,008,722 | 3,297,271 | ||
Consumer loans held-for-investment, at fair value | [1] | 1,602,571 | 363,756 | |
Secured notes and bonds payable, at fair value | $ 574,120 | $ 632,404 | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | ||
Preferred stock, shares issued (in shares) | 51,964,122 | 51,964,122 | ||
Preferred stock, shares outstanding (in shares) | 51,964,122 | 51,964,122 | ||
Preferred stock, liquidation preference | $ 1,299,104 | $ 1,299,104 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | ||
Common stock, shares issued (in shares) | 483,320,606 | 473,715,100 | ||
Common stock, shares outstanding (in shares) | 483,320,606 | 473,715,100 | ||
Assets | $ 33,858,079 | $ 32,479,336 | ||
Liabilities | 26,663,395 | 25,469,268 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Residential mortgage loans, held-for-sale, at fair value | 663,755 | 844,000 | ||
Assets | 1,794,976 | 2,257,091 | ||
Liabilities | 1,526,795 | 1,778,901 | ||
Agency And Non-Agency Residential Mortgage Backed Securities | ||||
Real estate and other securities | $ 8,722,018 | $ 8,289,277 | ||
|
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Revenues | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ 465,562 | $ 469,478 | $ 935,401 | $ 925,878 |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(139,410), $(180,265), $(245,101) and $(380,590), respectively) | 22,032 | 334,690 | (120,272) | 909,454 |
Servicing revenue, net | 487,594 | 804,168 | 815,129 | 1,835,332 |
Interest income | 398,786 | 211,648 | 745,400 | 437,061 |
Gain on originated residential mortgage loans, held-for-sale, net | 151,822 | 304,791 | 261,090 | 776,787 |
Total revenues | 1,038,202 | 1,320,607 | 1,821,619 | 3,049,180 |
Expenses | ||||
Interest expense and warehouse line fees | 329,158 | 150,829 | 638,226 | 289,662 |
General and administrative | 181,508 | 225,271 | 348,663 | 471,509 |
Compensation and benefits | 189,606 | 339,658 | 378,486 | 732,277 |
Management fee | 0 | 20,985 | 0 | 46,174 |
Termination fee to affiliate | 0 | 400,000 | 0 | 400,000 |
Total operating expenses | 700,272 | 1,136,743 | 1,365,375 | 1,939,622 |
Other Income (Loss) | ||||
Realized and unrealized gains (losses) on investments, net | 89,425 | (137,231) | 13,776 | (222,537) |
Other income (loss), net | 15,860 | 59,388 | 46,338 | 111,720 |
Total other income (loss) | 105,285 | (77,843) | 60,114 | (110,817) |
Income (loss) before income taxes | 443,215 | 106,021 | 516,358 | 998,741 |
Income tax expense (benefit) | 56,530 | 72,690 | 39,724 | 275,479 |
Net income (loss) | 386,685 | 33,331 | 476,634 | 723,262 |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 6,889 | 14,182 | 5,589 | 19,791 |
Dividends on preferred stock | 22,395 | 22,427 | 44,790 | 44,888 |
Net Income Attributable to Common Stockholders - basic | 357,401 | (3,278) | 426,255 | 658,583 |
Net Income Attributable to Common Stockholders - diluted | $ 357,401 | $ (3,278) | $ 426,255 | $ 658,583 |
Net Income (Loss) Per Share of Common Stock | ||||
Basic (in dollars per share) | $ 0.74 | $ (0.01) | $ 0.89 | $ 1.41 |
Diluted (in dollars per share) | $ 0.74 | $ (0.01) | $ 0.88 | $ 1.36 |
Weighted Average Number of Shares of Common Stock Outstanding | ||||
Basic (in shares) | 483,091,792 | 466,804,548 | 480,642,680 | 466,795,119 |
Diluted (in shares) | 483,376,961 | 466,804,548 | 483,113,400 | 484,494,108 |
Dividends Declared per Share of Common Stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.50 |
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Realization of cash flows | $ (245,101) | |||
MSRs | ||||
Realization of cash flows | $ (139,410) | $ (180,265) | $ (245,101) | $ (380,590) |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Net income | $ 386,685 | $ 33,331 | $ 476,634 | $ 723,262 |
Other comprehensive income, net of tax: | ||||
Unrealized gain (loss) on available-for-sale securities, net | (677) | (9,575) | 2,303 | (32,633) |
Comprehensive income | 386,008 | 23,756 | 478,937 | 690,629 |
Comprehensive income (loss) attributable to noncontrolling interests | 6,889 | 14,182 | 5,589 | 19,791 |
Dividends on preferred stock | 22,395 | 22,427 | 44,790 | 44,888 |
Comprehensive income (loss) attributable to common stockholders | $ 356,724 | $ (12,853) | $ 428,558 | $ 625,950 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) - USD ($) $ in Thousands |
Total |
Total Rithm Capital Stockholders’ Equity |
Preferred Stock |
Common Stock |
Additional Paid-in Capital |
Retained Earnings (Accumulated Deficit) |
Accumulated Other Comprehensive Income |
Noncontrolling Interests in Equity of Consolidated Subsidiaries |
---|---|---|---|---|---|---|---|---|
Preferred stock, shares outstanding, beginning balance (in shares) at Dec. 31, 2021 | 52,210,000,000 | |||||||
Common stock, shares outstanding beginning balance (in shares) at Dec. 31, 2021 | 466,758,266,000 | |||||||
Equity, beginning balance at Dec. 31, 2021 | $ 6,669,380 | $ 6,604,032 | $ 1,262,481 | $ 4,669 | $ 6,059,671 | $ (813,042) | $ 90,253 | $ 65,348 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared on common stock | (233,411) | (233,411) | (233,411) | |||||
Dividends declared on preferred stock | (44,888) | (44,888) | (44,888) | |||||
Capital distributions | (15,968) | (15,968) | ||||||
Preferred stock repurchase (in shares) | (171,658,000) | |||||||
Preferred stock repurchase | (3,814) | (3,814) | $ (3,814) | |||||
Director share grants (in shares) | 98,487,000 | |||||||
Director share grants | 1,070 | 1,070 | $ 1 | 1,069 | ||||
Comprehensive income (loss) | ||||||||
Net income (loss) | 723,262 | 703,471 | 703,471 | 19,791 | ||||
Unrealized gain (loss) on available-for-sale securities, net | (32,633) | (32,633) | (32,633) | |||||
Total comprehensive income (loss) | 690,629 | 670,838 | 19,791 | |||||
Preferred stock, shares outstanding, ending balance (in shares) at Jun. 30, 2022 | 52,038,342,000 | |||||||
Common stock, shares outstanding ending balance (in shares) at Jun. 30, 2022 | 466,856,753,000 | |||||||
Equity, ending balance at Jun. 30, 2022 | 7,062,998 | 6,993,827 | $ 1,258,667 | $ 4,670 | 6,060,740 | (387,870) | 57,620 | 69,171 |
Preferred stock, shares outstanding, beginning balance (in shares) at Mar. 31, 2022 | 52,038,342,000 | |||||||
Common stock, shares outstanding beginning balance (in shares) at Mar. 31, 2022 | 466,786,526,000 | |||||||
Equity, beginning balance at Mar. 31, 2022 | 7,184,712 | 7,122,634 | $ 1,258,667 | $ 4,669 | 6,059,981 | (267,878) | 67,195 | 62,078 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared on common stock | (116,714) | (116,714) | (116,714) | |||||
Dividends declared on preferred stock | (22,427) | (22,427) | (22,427) | |||||
Capital distributions | (7,089) | (7,089) | ||||||
Director share grants (in shares) | 70,227,000 | |||||||
Director share grants | 760 | 760 | $ 1 | 759 | ||||
Comprehensive income (loss) | ||||||||
Net income (loss) | 33,331 | 19,149 | 19,149 | 14,182 | ||||
Unrealized gain (loss) on available-for-sale securities, net | (9,575) | (9,575) | (9,575) | |||||
Total comprehensive income (loss) | 23,756 | 9,574 | 14,182 | |||||
Preferred stock, shares outstanding, ending balance (in shares) at Jun. 30, 2022 | 52,038,342,000 | |||||||
Common stock, shares outstanding ending balance (in shares) at Jun. 30, 2022 | 466,856,753,000 | |||||||
Equity, ending balance at Jun. 30, 2022 | $ 7,062,998 | 6,993,827 | $ 1,258,667 | $ 4,670 | 6,060,740 | (387,870) | 57,620 | 69,171 |
Preferred stock, shares outstanding, beginning balance (in shares) at Dec. 31, 2022 | 51,964,122 | 51,964,122,000 | ||||||
Common stock, shares outstanding beginning balance (in shares) at Dec. 31, 2022 | 473,715,100 | 473,715,100,000 | ||||||
Equity, beginning balance at Dec. 31, 2022 | $ 7,010,068 | 6,943,001 | $ 1,257,254 | $ 4,739 | 6,062,019 | (418,662) | 37,651 | 67,067 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared on common stock | (241,584) | (241,584) | (241,584) | |||||
Dividends declared on preferred stock | (44,790) | (44,790) | (44,790) | |||||
Capital distributions | (12,405) | (12,405) | ||||||
Cashless exercise of 2020 Warrants (in shares) | 9,287,347,000 | |||||||
Cashless exercise of 2020 Warrants | 0 | $ 93 | (93) | |||||
Director share grants and employee non-cash stock-based compensation (in shares) | 318,159,000 | |||||||
Director share grants and employee non-cash stock-based compensation | 4,458 | 4,458 | $ 2 | 6,687 | (2,231) | |||
Comprehensive income (loss) | ||||||||
Net income (loss) | 476,634 | 471,045 | 471,045 | 5,589 | ||||
Unrealized gain (loss) on available-for-sale securities, net | 2,303 | 2,303 | 2,303 | |||||
Total comprehensive income (loss) | $ 478,937 | 473,348 | 5,589 | |||||
Preferred stock, shares outstanding, ending balance (in shares) at Jun. 30, 2023 | 51,964,122 | 51,964,122,000 | ||||||
Common stock, shares outstanding ending balance (in shares) at Jun. 30, 2023 | 483,320,606 | 483,320,606,000 | ||||||
Equity, ending balance at Jun. 30, 2023 | $ 7,194,684 | 7,134,433 | $ 1,257,254 | $ 4,834 | 6,068,613 | (236,222) | 39,954 | 60,251 |
Preferred stock, shares outstanding, beginning balance (in shares) at Mar. 31, 2023 | 51,964,122,000 | |||||||
Common stock, shares outstanding beginning balance (in shares) at Mar. 31, 2023 | 483,017,747,000 | |||||||
Equity, beginning balance at Mar. 31, 2023 | 6,954,543 | 6,894,206 | $ 1,257,254 | $ 4,832 | 6,062,051 | (470,562) | 40,631 | 60,337 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared on common stock | (120,830) | (120,830) | (120,830) | |||||
Dividends declared on preferred stock | (22,395) | (22,395) | (22,395) | |||||
Capital distributions | (6,975) | (6,975) | ||||||
Director share grants and employee non-cash stock-based compensation (in shares) | 302,859,000 | |||||||
Director share grants and employee non-cash stock-based compensation | 4,333 | 4,333 | $ 2 | 6,562 | (2,231) | |||
Comprehensive income (loss) | ||||||||
Net income (loss) | 386,685 | 379,796 | 379,796 | 6,889 | ||||
Unrealized gain (loss) on available-for-sale securities, net | (677) | (677) | (677) | |||||
Total comprehensive income (loss) | $ 386,008 | 379,119 | 6,889 | |||||
Preferred stock, shares outstanding, ending balance (in shares) at Jun. 30, 2023 | 51,964,122 | 51,964,122,000 | ||||||
Common stock, shares outstanding ending balance (in shares) at Jun. 30, 2023 | 483,320,606 | 483,320,606,000 | ||||||
Equity, ending balance at Jun. 30, 2023 | $ 7,194,684 | $ 7,134,433 | $ 1,257,254 | $ 4,834 | $ 6,068,613 | $ (236,222) | $ 39,954 | $ 60,251 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.50 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
||||
Cash Flows From Operating Activities | |||||
Net income | $ 476,634 | $ 723,262 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||
Change in fair value of investments, net | 269,530 | 381,159 | |||
Change in fair value of equity investments | 27,630 | 9,111 | |||
Change in fair value of secured notes and bonds payable | (2,049) | (35,151) | |||
(Gain) loss on settlement of investments, net | (283,306) | (158,622) | |||
(Gain) loss on sale of originated residential mortgage loans, held-for-sale, net | (261,090) | (776,787) | |||
(Gain) loss on transfer of loans to REO | (7,472) | (4,039) | |||
Accretion and other amortization | (37,711) | (34,731) | |||
Provision (reversal) for credit losses on securities, loans and real estate owned | 3,009 | 7,528 | |||
Non-cash portions of servicing revenue, net | 120,272 | (979,079) | |||
Deferred tax provision | 39,626 | 275,458 | |||
Mortgage loans originated and purchased for sale, net of fees | (18,109,588) | (50,321,003) | |||
Sales proceeds and loan repayment proceeds for residential mortgage loans, held-for-sale | 18,491,330 | 55,755,342 | |||
Interest received from servicer advance investments, RMBS, loans and other | 27,874 | 31,394 | |||
Changes in: | |||||
Servicer advances receivable, net | 377,567 | 294,452 | |||
Other assets | 16,191 | 72,498 | |||
Due to affiliate | 0 | (17,819) | |||
Accrued expenses and other liabilities | 83,799 | 132,325 | |||
Net cash provided by (used in) operating activities | 1,232,246 | 5,355,298 | |||
Cash Flows From Investing Activities | |||||
Purchase of servicer advance investments | (445,470) | (500,000) | |||
Purchase of MSRs, MSR financing receivables and servicer advances receivable | 0 | (603) | |||
Purchase of RMBS | (2,898,237) | (1,052,724) | |||
Purchase of U.S. Treasury Bills | (973,795) | 0 | |||
Purchase of residential mortgage loans | (1,269) | (7,182) | |||
Purchase of SFR properties, real estate owned and other assets | (11,975) | (355,002) | |||
Draws on revolving consumer loans | (13,493) | (14,350) | |||
Net settlement of derivatives | 291,174 | 279,306 | |||
Return of investments in Excess MSRs | 16,489 | 7,873 | |||
Principal repayments from servicer advance investments | 464,921 | 541,868 | |||
Principal repayments from RMBS | 331,176 | 687,624 | |||
Principal repayments from residential mortgage loans | 21,364 | 49,806 | |||
Principal repayments from consumer loans | 86,164 | 79,298 | |||
Principal repayments from MSRs and MSR financing receivables | 0 | 1,216 | |||
Proceeds from sale of MSRs and MSR financing receivables | 424,034 | 2,105 | |||
Proceeds from sale of RMBS | 1,869,053 | 738,887 | |||
Proceeds from sale of real estate owned | 13,175 | 7,210 | |||
Net cash provided by (used in) investing activities | (826,689) | 465,332 | |||
Cash Flows From Financing Activities | |||||
Repayments of secured financing agreements | (24,321,697) | (23,318,214) | |||
Repayments of warehouse credit facilities | (18,980,639) | (56,240,720) | |||
Net settlement of margin deposits under repurchase agreements and derivatives | (411,796) | 812,477 | |||
Repayments of secured notes and bonds payable | (3,538,076) | (2,220,042) | |||
Deferred financing fees | (11,740) | (1,398) | |||
Dividends paid on common and preferred stock | (284,262) | (278,293) | |||
Borrowings under secured financing agreements | 26,093,901 | 21,936,667 | |||
Borrowings under warehouse credit facilities | 18,706,720 | 50,995,092 | |||
Borrowings under secured notes and bonds payable | 2,425,593 | 2,929,949 | |||
Repurchase of preferred stock | 0 | (3,814) | |||
Noncontrolling interest in equity of consolidated subsidiaries - distributions | (12,405) | (15,968) | |||
Net cash provided by (used in) financing activities | (334,401) | (5,404,264) | |||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 71,156 | 416,366 | |||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 1,617,634 | 1,528,442 | |||
Cash, Cash Equivalents and Restricted Cash, End of Period | 1,688,790 | 1,944,808 | |||
Supplemental Disclosure of Cash Flow Information | |||||
Cash paid during the period for interest | 624,519 | 280,007 | |||
Cash paid during the period for income taxes | 1,798 | 1,636 | |||
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||||
Dividends declared but not paid on common and preferred stock | 143,225 | 139,141 | |||
Transfer from residential mortgage loans to real estate owned and other assets | 14,662 | 4,890 | |||
Real estate securities retained from loan securitizations | 15,241 | 100,324 | |||
Residential mortgage loans subject to repurchase | 1,296,097 | [1] | 1,758,509 | ||
Cashless exercise of 2020 warrants (par) | 93 | 0 | |||
Cashless purchase of consumer loans | $ 1,317,347 | $ 0 | |||
|
BUSINESS AND ORGANIZATION |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS AND ORGANIZATION | BUSINESS AND ORGANIZATION Rithm Capital Corp. (together with its consolidated subsidiaries, “Rithm Capital,” or the “Company”) is a Delaware corporation that is primarily focused on managing assets and investments in the real estate and financial services sectors. Rithm Capital was formed as a limited liability company in September 2011 (commenced operations on December 8, 2011) for the purpose of making real estate and financial related investments. Rithm Capital is an independent publicly traded Real Estate Investment Trust (“REIT”). Rithm Capital’s investment portfolio is composed of mortgage servicing related assets (full and excess mortgage servicing rights (“MSRs”) and servicer advances), residential securities (and associated call rights), loans (mortgage, consumer and business purpose loans), single-family rental properties and commercial real estate. Rithm Capital’s investments in operating entities include leading origination and servicing platforms held through its wholly-owned subsidiaries, Newrez LLC (“Newrez”) and Caliber Home Loans Inc. (“Caliber,” and together with Newrez, the “Mortgage Company”) and Genesis Capital LLC (“Genesis”), as well as investments in affiliated businesses that provide mortgage related services. Prior to June 17, 2022, Rithm Capital operated under a management agreement (the “Management Agreement”) with FIG LLC (the “Former Manager”), an affiliate of Fortress Investment Group LLC. For its services, the Former Manager was entitled to management fees and incentive compensation, both defined in, and in accordance with the terms of, the Management Agreement. On June 17, 2022 Rithm Capital entered into an Internalization Agreement with the Former Manager (the “Internalization Agreement”), pursuant to which the Management Agreement was terminated effective June 17, 2022 (the “Effective Date”), except that certain indemnification and other obligations survive, and the Company internalized its management functions in accordance with the Internalization Agreement (such transactions, the “Internalization”). As a result of the Internalization, Rithm Capital ceased to be externally managed, and following the Internalization, Rithm Capital operates as an internally managed REIT. In connection with the termination of the Management Agreement, the Company agreed to pay the Former Manager $400.0 million (subject to certain adjustments). Following the Internalization, the Company no longer pays a management or incentive fee to the Former Manager. Rithm Capital has elected and intends to qualify to be taxed as a REIT for U.S. federal income tax purposes. As such, Rithm Capital will generally not be subject to U.S. federal corporate income tax on that portion of its net income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. See Note 23, Income Taxes, for additional information regarding Rithm Capital’s taxable REIT subsidiaries. Rithm Capital, through its wholly-owned subsidiaries New Residential Mortgage LLC (“NRM”) and the Mortgage Company, is licensed or otherwise eligible to service residential mortgage loans in all states within the United States and the District of Columbia. NRM and the Mortgage Company are also approved to service mortgage loans on behalf of investors, including the GSEs, and in the case of the Mortgage Company, Ginnie Mae. The Mortgage Company is also eligible to perform servicing on behalf of other servicers (subservicing) and investors. The Mortgage Company sells substantially all of the mortgage loans that it originates into the secondary market. The Mortgage Company securitizes loans into RMBS through the GSEs and Ginnie Mae. Loans originated outside of the GSEs, guidelines of the Federal Housing Administration (“FHA”), United States Department of Agriculture (“USDA”) or Department of Veterans Affairs (“VA”) (for loans securitized with Ginnie Mae) are sold to private investors and mortgage conduits. The Mortgage Company generally retains the right to service the underlying residential mortgage loans sold and securitized by the Mortgage Company. NRM and the Mortgage Company are required to conduct aspects of their operations in accordance with applicable policies and guidelines. Additionally, the Company owns the following affiliated businesses which provide mortgage related services to the Mortgage Company: eStreet Appraisal Management, LLC (“eStreet”) a provider of appraisal valuation services and Avenue 365 Lender Services, LLC (“Avenue 365”) a provider of title insurance and settlement services. The Company also owns operating companies which support its single-family rental (“SFR”) portfolio and MSR investments. Genesis is a lender specializing in providing capital to developers of new construction, fix and flip and rental hold projects across the residential spectrum (including single-family, multi-family and production home building.) Genesis supports the Company's single-family rental strategy operated by Adoor LLC (“Adoor”). Adoor is a wholly-owned subsidiary focused on the acquisition and management of SFR properties. Rithm Capital, through its wholly-owned subsidiary Guardian Asset Management (“Guardian”), provides property preservation and maintenance services for residential properties. Services offered include repairs, bids, inspections, landscaping, janitorial, inspections and HOA and utility payment services. As of June 30, 2023, Rithm Capital conducted its business through the following segments: (i) Origination, (ii) Servicing, (iii) MSR Related Investments, (iv) Residential Securities, Properties and Loans, (v) Consumer Loans, (vi) Mortgage Loans Receivable and (vii) Corporate.
|
BASIS OF PRESENTATION |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Interim Financial Statements — The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP” or “U.S. GAAP”). In the opinion of management, all adjustments considered necessary for a fair presentation of Rithm Capital’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The Consolidated Financial Statements include the accounts of Rithm Capital and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. Rithm Capital consolidates those entities in which it has control over significant operating, financing and investing decisions of the entity, as well as those entities deemed to be VIEs in which Rithm Capital is determined to be the primary beneficiary. For entities over which Rithm Capital exercises significant influence, but which do not meet the requirements for consolidation, Rithm Capital uses the equity method of accounting whereby it records its share of the underlying income of such entities. Distributions from equity method investees are classified in the Consolidated Statements of Cash Flows based on the cumulative earnings approach, where all distributions up to cumulative earnings are classified as distributions of earnings. Reclassifications — Certain prior period amounts in Rithm Capital’s Consolidated Financial Statements and respective notes have been reclassified to be consistent with the current period presentation. Such reclassifications had no impact on net income, total assets, total liabilities or stockholders’ equity. Impairment of Long-Lived Assets — The Company reviews long-lived assets for impairment when events or changes in circumstances indicate the carrying value of these assets may exceed their current fair values. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment charges were recognized on long-lived assets for the three months and six months ended June 30, 2023. In the future, if events or market conditions affect the estimated fair value to the extent that a long-lived asset is impaired, the Company will adjust the carrying value of these long-lived assets in the period in which the impairment occurs. Risks and Uncertainties — In the normal course of business, Rithm Capital encounters primarily two significant types of economic risk: credit risk and market risk. Credit risk is the risk of default on Rithm Capital’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of investments due to changes in prepayment rates, interest rates, spreads or other market factors, including risks that impact the value of the collateral underlying Rithm Capital’s investments. Taking into consideration these risks along with estimated prepayments, financings, collateral values, payment histories and other information, Rithm Capital believes that the carrying values of its investments are reasonable. Furthermore, for each of the periods presented, a significant portion of Rithm Capital’s assets are dependent on its servicers’ and subservicers’ ability to perform their obligations servicing the residential mortgage loans underlying Rithm Capital’s Excess MSRs, MSRs, MSR financing receivables, servicer advance investments, Non-Agency RMBS and loans. If a servicer is terminated, Rithm Capital’s right to receive its portion of the cash flows related to interests in servicing related assets may also be terminated. The mortgage and financial sectors operate in a challenging and uncertain economic environment. Financial and real estate companies continue to be affected by, among other things, market volatility, rapidly rising interest rates and inflationary pressures. Should macroeconomic conditions continue to worsen, there is no assurance that such conditions will not result in an overall decline in the fair value of many assets, including those in which the Company invests, and potential impairment of the carrying value of goodwill or other intangible assets. The ultimate duration and impact of the current economic environment remain uncertain. Rithm Capital is subject to significant tax risks. If Rithm Capital were to fail to qualify as a REIT in any taxable year, Rithm Capital would be subject to U.S. federal corporate income tax (including any applicable alternative minimum tax), which could be material. Unless entitled to relief under certain statutory provisions, Rithm Capital would also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification is lost. Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Recent Accounting Pronouncements — In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The standard was issued to ease the accounting effects of reform to the London Interbank Offered Rate (“LIBOR”) and other reference rates. The standard provides optional expedients and exceptions for applying GAAP to debt, derivatives and other contracts affected by reference rate reform. The standard was effective for all entities as of March 12, 2020 through December 31, 2022 and was able to be elected over time as reference rate reform activities occur. Additionally, in December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. The standard defers the expiration date of ASC 848 from December 31, 2022 to December 31, 2024. ASU 2022-06 became effective upon issuance. As of June 30, 2023, the Company has transitioned from LIBOR to an alternative benchmark. The Company's financing arrangements have provisions in place that provide for an alternative to LIBOR. In addition, the Company has amended terms of certain financing arrangements, where necessary, to transition or direct the transition to an alternative benchmark. The Company does not currently intend to amend the 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series A”), the 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series B”), or the 6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series C”) to change the existing USD-LIBOR cessation fallback language. In March 2022, the FASB issued ASU 2022-01, Derivative and Hedging (Topic 815): Fair Value Hedging–Portfolio Layer Method. The standard clarifies the accounting and promotes consistency in reporting for hedges where the portfolio layer method is applied. The new standard is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company’s adoption of the new standard did not have a material effect on its Consolidated Financial Statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The standard clarifies that a contractual restriction on the sale of an equity security is not considered in measuring the security’s fair value. The standard also requires certain disclosures for equity securities that are subject to contractual restrictions. The new standard is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company does not expect the adoption of the new standard to have a material effect on its Consolidated Financial Statements.
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SEGMENT REPORTING |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING At June 30, 2023, Rithm Capital’s reportable segments include (i) Origination, (ii) Servicing, (iii) MSR Related Investments, (iv) Residential Securities, Properties and Loans, (v) Consumer Loans, (vi) Mortgage Loans Receivable and (vii) Corporate. The Corporate segment primarily consists of general and administrative expenses, corporate cash and related interest income, unsecured senior notes (Note 18) and related interest expense. The following tables summarize segment financial information, which in total reconciles to the same data for Rithm Capital as a whole:
(A)Includes elimination of intercompany transactions of $2.5 million primarily related to loan sales. Servicing Segment Revenues The table below summarizes the components of servicing segment revenues:
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EXCESS MORTGAGE SERVICING RIGHTS |
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Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EXCESS MORTGAGE SERVICING RIGHTS | EXCESS MORTGAGE SERVICING RIGHTS Excess mortgage servicing rights assets include Rithm Capital’s direct investments in Excess MSRs and investments in joint ventures jointly controlled by Rithm Capital and funds managed by the Former Manager investing in Excess MSRs. Our investments in Excess MSR assets are included in Other assets on the Consolidated Balance Sheets. The table below summarizes the components of Excess MSRs:
Direct Investments in Excess MSRs The following table presents activity related to the carrying value of direct investments in Excess MSRs:
(A)Underlying loans serviced by Mr. Cooper Group Inc. (“Mr. Cooper”) and Specialized Loan Servicing LLC (“SLS”). Mr. Cooper or SLS, as applicable, as servicer performs all of the servicing and advancing functions, and retains the ancillary income, servicing obligations and liabilities as the servicer of the underlying loans in the portfolio. Rithm Capital entered into a “recapture agreement” with respect to each of the direct Excess MSR investments serviced by Mr. Cooper and SLS. Under such arrangements, Rithm Capital is generally entitled to a pro rata interest in the Excess MSRs on any refinancing by Mr. Cooper of a loan in the original portfolio. These recapture agreements do not apply to Rithm Capital’s servicer advance investments (Note 6). The following table summarizes direct investments in Excess MSRs:
(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 is also invested in related servicer advance investments, including the basic fee component of the related MSR as of June 30, 2023 (Note 6) on $16.2 billion UPB underlying these Excess MSRs. Changes in fair value of investments consists of the following:
As of June 30, 2023, a weighted average discount rate of 8.3% was used to value Rithm Capital’s investments in Excess MSRs (directly and through equity method investees). Excess MSR Joint Ventures Rithm Capital entered into investments in joint ventures (“Excess MSR joint ventures”) jointly controlled by Rithm Capital and funds managed by the Former Manager investing in Excess MSRs. The following tables summarize the financial results of the Excess MSR joint ventures, accounted for as equity method investees:
The following table summarizes the activity of investments in equity method investees:
The following is a summary of Excess MSR investments made through equity method investees:
(A)The remaining interests are held by Mr. Cooper. (B)Represents the amortized cost basis of the equity method investees in which Rithm Capital holds a 50% interest. (C)Represents the carrying value of the Excess MSRs held in equity method investees, in which Rithm Capital holds a 50% interest. Carrying value represents the fair value of the pools, as applicable. (D)Represents the weighted average expected timing of the receipt of cash flows of each investment. MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLESThe following table summarizes activity related to MSRs and MSR financing receivables:
(A)Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection. (B)Represents MSRs retained on the sale of originated residential mortgage loans. (C)Relates primarily to excess servicing cash flows sold on certain agency loans with a total UPB of approximately $56.7 billion during the three months ended June 30, 2023. In connection with these sales, the Company recorded a gain of approximately $4.1 million during the period, which is included within change in fair value of MSRs and MSR financing receivables in the Consolidated Statements of Operations. (D)Based on the paydown of the underlying residential mortgage loans. The following table summarizes components of Servicing Revenue, Net:
The following table summarizes MSRs and MSR financing receivables by type as of June 30, 2023:
(A)Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B)Carrying value represents fair value. As of June 30, 2023, weighted average discount rates of 8.5% (range of 7.8% – 10.8%) were used to value Rithm Capital’s MSRs and MSR financing receivables. (C)As of June 30, 2023, Rithm Capital holds approximately $1.3 billion in residential mortgage loans subject to repurchase and the related residential mortgage loans repurchase liability on its Consolidated Balance Sheets. Residential Mortgage Loans Subject to Repurchase Rithm Capital, through its wholly-owned subsidiaries as approved issuers of Ginnie Mae MBS, originates and securitizes government-insured residential mortgage loans. As the issuer of the Ginnie Mae-guaranteed securitizations, Rithm Capital has the unilateral right to repurchase loans from the securitizations when they are delinquent for more than 90 days. Loans in forbearance that are three or more consecutive payments delinquent are included as delinquent loans permitted to be repurchased. Under GAAP, Rithm Capital is required to recognize the right to loans on its balance sheet and establish a corresponding liability upon the triggering of the repurchase right regardless of whether the Company intends to repurchase the loans. As of June 30, 2023, Rithm Capital holds approximately $1.3 billion in residential mortgage loans subject to repurchase and residential mortgage loans repurchase liability on its Consolidated Balance Sheets. Rithm Capital may re-pool repurchased loans into new Ginnie Mae securitizations upon re-performance of the loan or otherwise sell to third-party investors. The Company does not change the accounting for MSRs related to previously sold loans upon recognizing loans eligible for repurchase. Rather, upon repurchase of a loan, the MSR is written off. As of June 30, 2023, Rithm Capital holds approximately $0.5 billion of repurchased residential mortgage loans on its Consolidated Balance Sheets. Ocwen MSR Financing Receivable Transactions In July 2017, Ocwen Loan Servicing, LLC (collectively with certain affiliates, “Ocwen”) and Rithm Capital entered into an agreement in which both parties agreed to undertake certain actions to facilitate the transfer from Ocwen to Rithm Capital of Ocwen’s remaining interests in the MSRs relating to loans with an aggregate unpaid principal balance of approximately $110.0 billion and with respect to which Rithm Capital already held certain rights (“Rights to MSRs”). Ocwen and Rithm Capital concurrently entered into a subservicing agreement pursuant to which Ocwen agreed to subservice the mortgage loans related to the MSRs that were transferred to Rithm Capital. In January 2018, Ocwen sold and transferred to Rithm Capital certain Rights to MSRs and other assets related to mortgage servicing rights for loans with an unpaid principal balance of approximately $86.8 billion. PHH (as successor by merger to Ocwen) will continue to service the residential mortgage loans related to the MSRs until any necessary third-party consents to transferring the MSRs are obtained and all other conditions to transferring the MSRs are satisfied. Of the Rights to MSRs sold and transferred to NRM and Newrez, consents and all other conditions to transfer have been received with respect to approximately $66.7 billion UPB of underlying loans. Although legally sold and entitled to the economics of the transfer, as of June 30, 2023, with respect to MSRs representing approximately $11.9 billion UPB of underlying loans, it was determined for accounting purposes that substantially all of the risks and rewards inherent in owning the MSRs had not been transferred to Newrez and therefore are not treated as a sale under GAAP and are classified as MSR financing receivables. The table below summarizes the geographic distribution of the underlying residential mortgage loans of the MSRs and MSR financing receivables:
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 therefore could have a meaningful, negative impact on the MSRs. Residential Mortgage Loan Subservicing The Mortgage Company performs servicing of residential mortgage loans for unaffiliated parties under servicing agreements. The servicing agreements do not meet the criteria to be recognized as a servicing right asset and, therefore, are not recognized on Rithm Capital’s Consolidated Balance Sheets. The UPB of residential mortgage loans serviced for others as of June 30, 2023 and 2022 was $95.6 billion and $87.2 billion, respectively. Rithm Capital earned servicing revenue of $69.1 million and $66.1 million for the six months ended June 30, 2023 and 2022, respectively, related to unaffiliated serviced loans which is included within Servicing Revenue, Net in the Consolidated Statements of Operations. Rithm Capital engages unaffiliated licensed mortgage servicers as subservicers and, in relation to certain owned MSRs, including to perform the operational servicing duties, including recapture activities in exchange for a subservicing fee which is recorded as Subservicing Expense and reflected as part of General and Administrative expenses in Rithm Capital’s Consolidated Statements of Operations. As of June 30, 2023, these subservicers include PHH, Mr. Cooper, LoanCare, Valon and Flagstar, which subservice 8.8%, 7.6%, 5.5%, 2.6% and 0.1%, respectively, of the MSRs owned by Rithm Capital. The remaining 75.4% of owned MSRs are serviced by the Mortgage Company (Note 1). During the second quarter of 2023, Rithm Capital notified Mr. Cooper and LoanCare that their respective subservicing agreements would not be renewed and servicing related to loans subserviced by Mr. Cooper and LoanCare would be transferred to the Mortgage Company. Servicer Advances Receivable In connection with Rithm Capital’s ownership of MSRs, the Company assumes the obligation to serve as a liquidity provider to initially fund servicer advances on the underlying pool of mortgages (Note 22) it services. These servicer advances are recorded when advanced and are included in servicer advances receivable on the Consolidated Balance Sheets. The table below summarizes the type of advances included in the servicer advances receivable:
(A)Includes $447.6 million and $526.5 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B)Includes $221.2 million and $261.8 million of servicer advances receivable related to Ginnie Mae MSRs, respectively, recoverable from either the borrower or Ginnie Mae. Expected losses for advances associated with Ginnie Mae loans in the MSR portfolio are considered in the MSR fair valuation through a non-reimbursable advance loss assumption. (C)Excludes $51.7 million and $19.5 million, respectively, in unamortized advance discount and reserves, net of accruals for advance recoveries. These reserves relate to inactive loans in the foreclosure or liquidation process. Rithm Capital’s servicer advances receivable related to Non-Agency MSRs generally have the highest reimbursement priority pursuant to the underlying servicing agreements (i.e., “top of the waterfall”) and Rithm Capital is generally entitled to repayment from respective loan or REO liquidation proceeds before any interest or principal is paid on the bonds that were issued by the trust. In the majority of cases, advances in excess of respective loan or REO liquidation proceeds may be recovered from pool-level proceeds. Furthermore, to the extent that advances are not recoverable by Rithm Capital as a result of the subservicer’s failure to comply with applicable requirements in the relevant servicing agreements, Rithm Capital has a contractual right to be reimbursed by the subservicer. For advances on loans that have been liquidated, sold, paid in full or modified, the Company has reserved $92.9 million, or 3.7%, and $65.4 million, or 2.3%, for expected non-recovery of advances as of June 30, 2023 and December 31, 2022, respectively. The following table summarizes servicer advances reserve:
See Note 18 regarding the financing of MSRs and servicer advances receivable.
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MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES |
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Transfers and Servicing of Financial Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES | EXCESS MORTGAGE SERVICING RIGHTS Excess mortgage servicing rights assets include Rithm Capital’s direct investments in Excess MSRs and investments in joint ventures jointly controlled by Rithm Capital and funds managed by the Former Manager investing in Excess MSRs. Our investments in Excess MSR assets are included in Other assets on the Consolidated Balance Sheets. The table below summarizes the components of Excess MSRs:
Direct Investments in Excess MSRs The following table presents activity related to the carrying value of direct investments in Excess MSRs:
(A)Underlying loans serviced by Mr. Cooper Group Inc. (“Mr. Cooper”) and Specialized Loan Servicing LLC (“SLS”). Mr. Cooper or SLS, as applicable, as servicer performs all of the servicing and advancing functions, and retains the ancillary income, servicing obligations and liabilities as the servicer of the underlying loans in the portfolio. Rithm Capital entered into a “recapture agreement” with respect to each of the direct Excess MSR investments serviced by Mr. Cooper and SLS. Under such arrangements, Rithm Capital is generally entitled to a pro rata interest in the Excess MSRs on any refinancing by Mr. Cooper of a loan in the original portfolio. These recapture agreements do not apply to Rithm Capital’s servicer advance investments (Note 6). The following table summarizes direct investments in Excess MSRs:
(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 is also invested in related servicer advance investments, including the basic fee component of the related MSR as of June 30, 2023 (Note 6) on $16.2 billion UPB underlying these Excess MSRs. Changes in fair value of investments consists of the following:
As of June 30, 2023, a weighted average discount rate of 8.3% was used to value Rithm Capital’s investments in Excess MSRs (directly and through equity method investees). Excess MSR Joint Ventures Rithm Capital entered into investments in joint ventures (“Excess MSR joint ventures”) jointly controlled by Rithm Capital and funds managed by the Former Manager investing in Excess MSRs. The following tables summarize the financial results of the Excess MSR joint ventures, accounted for as equity method investees:
The following table summarizes the activity of investments in equity method investees:
The following is a summary of Excess MSR investments made through equity method investees:
(A)The remaining interests are held by Mr. Cooper. (B)Represents the amortized cost basis of the equity method investees in which Rithm Capital holds a 50% interest. (C)Represents the carrying value of the Excess MSRs held in equity method investees, in which Rithm Capital holds a 50% interest. Carrying value represents the fair value of the pools, as applicable. (D)Represents the weighted average expected timing of the receipt of cash flows of each investment. MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLESThe following table summarizes activity related to MSRs and MSR financing receivables:
(A)Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection. (B)Represents MSRs retained on the sale of originated residential mortgage loans. (C)Relates primarily to excess servicing cash flows sold on certain agency loans with a total UPB of approximately $56.7 billion during the three months ended June 30, 2023. In connection with these sales, the Company recorded a gain of approximately $4.1 million during the period, which is included within change in fair value of MSRs and MSR financing receivables in the Consolidated Statements of Operations. (D)Based on the paydown of the underlying residential mortgage loans. The following table summarizes components of Servicing Revenue, Net:
The following table summarizes MSRs and MSR financing receivables by type as of June 30, 2023:
(A)Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B)Carrying value represents fair value. As of June 30, 2023, weighted average discount rates of 8.5% (range of 7.8% – 10.8%) were used to value Rithm Capital’s MSRs and MSR financing receivables. (C)As of June 30, 2023, Rithm Capital holds approximately $1.3 billion in residential mortgage loans subject to repurchase and the related residential mortgage loans repurchase liability on its Consolidated Balance Sheets. Residential Mortgage Loans Subject to Repurchase Rithm Capital, through its wholly-owned subsidiaries as approved issuers of Ginnie Mae MBS, originates and securitizes government-insured residential mortgage loans. As the issuer of the Ginnie Mae-guaranteed securitizations, Rithm Capital has the unilateral right to repurchase loans from the securitizations when they are delinquent for more than 90 days. Loans in forbearance that are three or more consecutive payments delinquent are included as delinquent loans permitted to be repurchased. Under GAAP, Rithm Capital is required to recognize the right to loans on its balance sheet and establish a corresponding liability upon the triggering of the repurchase right regardless of whether the Company intends to repurchase the loans. As of June 30, 2023, Rithm Capital holds approximately $1.3 billion in residential mortgage loans subject to repurchase and residential mortgage loans repurchase liability on its Consolidated Balance Sheets. Rithm Capital may re-pool repurchased loans into new Ginnie Mae securitizations upon re-performance of the loan or otherwise sell to third-party investors. The Company does not change the accounting for MSRs related to previously sold loans upon recognizing loans eligible for repurchase. Rather, upon repurchase of a loan, the MSR is written off. As of June 30, 2023, Rithm Capital holds approximately $0.5 billion of repurchased residential mortgage loans on its Consolidated Balance Sheets. Ocwen MSR Financing Receivable Transactions In July 2017, Ocwen Loan Servicing, LLC (collectively with certain affiliates, “Ocwen”) and Rithm Capital entered into an agreement in which both parties agreed to undertake certain actions to facilitate the transfer from Ocwen to Rithm Capital of Ocwen’s remaining interests in the MSRs relating to loans with an aggregate unpaid principal balance of approximately $110.0 billion and with respect to which Rithm Capital already held certain rights (“Rights to MSRs”). Ocwen and Rithm Capital concurrently entered into a subservicing agreement pursuant to which Ocwen agreed to subservice the mortgage loans related to the MSRs that were transferred to Rithm Capital. In January 2018, Ocwen sold and transferred to Rithm Capital certain Rights to MSRs and other assets related to mortgage servicing rights for loans with an unpaid principal balance of approximately $86.8 billion. PHH (as successor by merger to Ocwen) will continue to service the residential mortgage loans related to the MSRs until any necessary third-party consents to transferring the MSRs are obtained and all other conditions to transferring the MSRs are satisfied. Of the Rights to MSRs sold and transferred to NRM and Newrez, consents and all other conditions to transfer have been received with respect to approximately $66.7 billion UPB of underlying loans. Although legally sold and entitled to the economics of the transfer, as of June 30, 2023, with respect to MSRs representing approximately $11.9 billion UPB of underlying loans, it was determined for accounting purposes that substantially all of the risks and rewards inherent in owning the MSRs had not been transferred to Newrez and therefore are not treated as a sale under GAAP and are classified as MSR financing receivables. The table below summarizes the geographic distribution of the underlying residential mortgage loans of the MSRs and MSR financing receivables:
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 therefore could have a meaningful, negative impact on the MSRs. Residential Mortgage Loan Subservicing The Mortgage Company performs servicing of residential mortgage loans for unaffiliated parties under servicing agreements. The servicing agreements do not meet the criteria to be recognized as a servicing right asset and, therefore, are not recognized on Rithm Capital’s Consolidated Balance Sheets. The UPB of residential mortgage loans serviced for others as of June 30, 2023 and 2022 was $95.6 billion and $87.2 billion, respectively. Rithm Capital earned servicing revenue of $69.1 million and $66.1 million for the six months ended June 30, 2023 and 2022, respectively, related to unaffiliated serviced loans which is included within Servicing Revenue, Net in the Consolidated Statements of Operations. Rithm Capital engages unaffiliated licensed mortgage servicers as subservicers and, in relation to certain owned MSRs, including to perform the operational servicing duties, including recapture activities in exchange for a subservicing fee which is recorded as Subservicing Expense and reflected as part of General and Administrative expenses in Rithm Capital’s Consolidated Statements of Operations. As of June 30, 2023, these subservicers include PHH, Mr. Cooper, LoanCare, Valon and Flagstar, which subservice 8.8%, 7.6%, 5.5%, 2.6% and 0.1%, respectively, of the MSRs owned by Rithm Capital. The remaining 75.4% of owned MSRs are serviced by the Mortgage Company (Note 1). During the second quarter of 2023, Rithm Capital notified Mr. Cooper and LoanCare that their respective subservicing agreements would not be renewed and servicing related to loans subserviced by Mr. Cooper and LoanCare would be transferred to the Mortgage Company. Servicer Advances Receivable In connection with Rithm Capital’s ownership of MSRs, the Company assumes the obligation to serve as a liquidity provider to initially fund servicer advances on the underlying pool of mortgages (Note 22) it services. These servicer advances are recorded when advanced and are included in servicer advances receivable on the Consolidated Balance Sheets. The table below summarizes the type of advances included in the servicer advances receivable:
(A)Includes $447.6 million and $526.5 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B)Includes $221.2 million and $261.8 million of servicer advances receivable related to Ginnie Mae MSRs, respectively, recoverable from either the borrower or Ginnie Mae. Expected losses for advances associated with Ginnie Mae loans in the MSR portfolio are considered in the MSR fair valuation through a non-reimbursable advance loss assumption. (C)Excludes $51.7 million and $19.5 million, respectively, in unamortized advance discount and reserves, net of accruals for advance recoveries. These reserves relate to inactive loans in the foreclosure or liquidation process. Rithm Capital’s servicer advances receivable related to Non-Agency MSRs generally have the highest reimbursement priority pursuant to the underlying servicing agreements (i.e., “top of the waterfall”) and Rithm Capital is generally entitled to repayment from respective loan or REO liquidation proceeds before any interest or principal is paid on the bonds that were issued by the trust. In the majority of cases, advances in excess of respective loan or REO liquidation proceeds may be recovered from pool-level proceeds. Furthermore, to the extent that advances are not recoverable by Rithm Capital as a result of the subservicer’s failure to comply with applicable requirements in the relevant servicing agreements, Rithm Capital has a contractual right to be reimbursed by the subservicer. For advances on loans that have been liquidated, sold, paid in full or modified, the Company has reserved $92.9 million, or 3.7%, and $65.4 million, or 2.3%, for expected non-recovery of advances as of June 30, 2023 and December 31, 2022, respectively. The following table summarizes servicer advances reserve:
See Note 18 regarding the financing of MSRs and servicer advances receivable.
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SERVICER ADVANCE INVESTMENTS |
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Investments, All Other Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SERVICER ADVANCE INVESTMENTS | SERVICER ADVANCE INVESTMENTS Rithm Capital’s servicer advance investments consist of arrangements to fund existing outstanding servicer advances and the requirement to purchase all future servicer advances made with respect to a specified pool of residential mortgage loans in exchange for the basic fee component of the related MSR. Rithm Capital elected to record its servicer advance investments, including the right to the basic fee component of the related MSRs, at fair value pursuant to the fair value option for financial instruments to provide users of the financial statements with better information regarding the effects of market factors. A taxable wholly-owned subsidiary of Rithm Capital is the managing member of Advance Purchaser LLC (the “Advance Purchaser”), a joint venture entity, and owns an approximately 89.3% interest in Advance Purchaser as of June 30, 2023 and December 31, 2022. Advance Purchaser was established in December 2013 for the purpose of investing in residential mortgage related advances. As of June 30, 2023, the noncontrolling third-party co-investors and Rithm Capital have funded their capital commitments; however, Advance Purchaser may recall $71.5 million and $597.9 million of capital distributed to the third-party co-investors and Rithm Capital, respectively. Neither the third-party co-investors nor Rithm Capital is obligated to fund amounts in excess of their respective capital commitments, regardless of the capital requirements of Advance Purchaser. Our servicer advance investments are included in Other assets on the Consolidated Balance Sheets. The following table summarizes servicer advance investments, including the right to the basic fee component of the related MSRs:
(A)Represents the fair value of the servicer advance investments, including the basic fee component of the related MSRs. (B)Represents the weighted average expected timing of the receipt of expected net cash flows for this investment. The following table provides additional information regarding the servicer advance investments and related financing:
(A)Based on outstanding servicer advances, excluding purchased but unsettled servicer advances. (B)Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve. (C)Annualized measure of the cost associated with borrowings. Gross cost of funds primarily includes interest expense and facility fees. Net cost of funds excludes facility fees. (D)The following table summarizes the types of advances included in servicer advance investments:
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REAL ESTATE AND OTHER SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE AND OTHER SECURITIES | REAL ESTATE AND OTHER SECURITIES “Agency” RMBS are RMBS issued by the GSEs or Ginnie Mae. “Non-Agency” RMBS are issued by either public trusts or private label securitization entities. The following table summarizes Real Estate and Other Securities for Available for Sale and RMBS Measured at Fair Value securities by designation:
(A)Fair value is equal to the carrying value for all securities. See Note 19 regarding the fair value measurements. (B)Excludes residual bonds and certain other Non-Agency bonds, with a carrying value of $17.9 million and $1.1 million, respectively, for which no coupon payment is expected. (C)Based on the timing of expected principal reduction on the assets. (D)Percentage of the amortized cost basis of securities that is subordinate to Rithm Capital’s investments, excluding fair value option securities. (E)The total outstanding face amount was $7.9 billion for fixed rate securities as of June 30, 2023. (F)The total outstanding face amount was $8.0 billion (including $7.2 billion of residual and fair value option notional amount) for fixed rate securities and $9.5 billion (including $9.2 billion of residual and fair value option notional amount) for floating rate securities as of June 30, 2023. (G)Includes other asset-backed securities consisting primarily of (i) interest-only securities, servicing strips and commercial mortgage backed securities (fair value option securities) which Rithm Capital elected to carry at fair value and record changes to valuation through earnings, (ii) bonds backed by consumer loans and (iii) corporate debt.
The following table summarizes Real Estate and Other Securities for Held to Maturity securities:
The following table summarizes purchases and sales of Real Estate and Other Securities:
As of June 30, 2023, Rithm Capital had no unsettled trades. As of December 31, 2022, Rithm Capital had purchased $738.4 million face amount of Agency RMBS for $730.0 million and sold $490.8 million face amount of Agency RMBS for $471.6 million which had not yet been settled. Unsettled purchases and sales are recorded on a trade date basis and grouped and presented within Payable for Investments Purchased and Receivable for Investments Sold on the Consolidated Balance Sheets. Rithm Capital has exercised its call rights with respect to Non-Agency RMBS trusts and purchased performing and non-performing residential mortgage loans and REO contained in such trusts prior to their termination. In certain cases, Rithm Capital sold portions of the purchased loans through securitizations and retained bonds issued by such securitizations. In addition, Rithm Capital received par on the securities issued by the called trusts which it owned prior to such trusts’ termination. Refer to Note 8 for further details on these transactions. During the six months ended June 30, 2023, Rithm Capital purchased $1.0 billion of 6-month U.S. Treasury Bills maturing on November 24, 2023. The following table summarizes certain information for RMBS designated as AFS in an unrealized loss position as of June 30, 2023:
(A)Represents credit impairment on securities in an unrealized loss position as of June 30, 2023. Rithm Capital performed an assessment of all RMBS designated as AFS that are in an unrealized loss position (an unrealized loss position exists when a security’s amortized cost basis, excluding the effect of credit impairment, exceeds its fair value) and determined the following:
(A)Required to be recorded through earnings. In measuring the portion of credit losses, Rithm Capital estimates the expected cash flow for each of the securities. This evaluation included a review of the credit status and the performance of the collateral supporting those securities, including the credit of the issuer, key terms of the securities and the effect of local, industry and broader economic trends. Significant inputs in estimating the cash flows included Rithm Capital’s expectations of prepayment rates, default rates and loss severities. Credit losses were measured as the decline in the present value of the expected future cash flows discounted at the security’s effective interest rate. (B)Represents unrealized losses on securities that are due to non-credit factors. (C)Rithm Capital may, at times, be more likely than not to be required to sell certain securities for liquidity purposes. While the amount of the securities to be sold may be an estimate, and the securities to be sold have not yet been identified, Rithm Capital must make its best estimate, which is subject to significant judgment regarding future events, and may differ materially from actual future sales. The following table summarizes the activity related to the allowance for credit losses on RMBS designated as Available-for-Sale (“AFS”) (excluding credit impairment relating to securities Rithm Capital intends to sell or is more likely than not required to sell):
Rithm Capital evaluates the credit quality of its real estate securities, as of the acquisition date, for evidence of credit quality deterioration. As a result, Rithm Capital identified a population of real estate securities for which it was determined that it was probable that Rithm Capital would be unable to collect all contractually required payments. The following is the outstanding face amount and carrying value for securities, for which, as of the acquisition date, it was probable that Rithm Capital would be unable to collect all contractually required payments, excluding residual and fair value option securities:
The following is a summary of the changes in accretable yield for these securities:
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RESIDENTIAL MORTGAGE LOANS |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESIDENTIAL MORTGAGE LOANS | RESIDENTIAL MORTGAGE LOANS Rithm Capital accumulated its residential mortgage loan portfolio through various bulk acquisitions and the execution of call rights. Rithm Capital, through its Mortgage Company, originates residential mortgage loans for sale and securitization to third parties and generally retains the servicing rights on the underlying loans. Loans are accounted for based on Rithm Capital’s strategy for the loan and on whether the loan was credit-impaired at the date of acquisition. As of June 30, 2023, Rithm Capital accounts for loans based on the following categories: •Loans held-for-investment, at fair value •Loans held-for-sale, at lower of cost or fair value •Loans held-for-sale, at fair value The following table summarizes residential mortgage loans outstanding by loan type:
(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)Performing loans are generally placed on nonaccrual status when principal or interest is 90 days or more past due. (C)As of June 30, 2023, Rithm Capital has placed non-performing loans, held-for-sale on nonaccrual status, except as described in (D) below. (D)Includes $311.6 million and $210.9 million UPB of Ginnie Mae Early Buyout Options (“EBOs”) performing and non-performing loans, respectively, on accrual status as contractual cash flows are guaranteed by the FHA. The following table summarizes the geographic distribution of the underlying residential mortgage loans:
See Note 18 regarding the financing of residential mortgage loans. The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate carrying value of loans:
The following table summarizes the activity for residential mortgage loans:
(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). Net Interest Income The following table summarizes the net interest income for residential mortgage loans:
Gain on Originated Residential Mortgage Loans, Held-for-Sale, Net The Mortgage Company originates conventional, government-insured and nonconforming residential mortgage loans for sale and securitization. In connection with the sale or securitization of loans to the GSEs or mortgage investors, Rithm Capital reports Gain on Originated Residential Mortgage Loans, Held-for-Sale, Net in the Consolidated Statements of Operations. The following table summarizes the components of Gain on Originated Residential Mortgage Loans, Held-for-Sale, Net:
(A)Includes residential mortgage loan origination fees of $94.0 million and $116.8 million for the three months ended June 30, 2023 and 2022, respectively. Includes residential mortgage loan origination fees of $162.9 million and $369.3 million for the six months ended June 30, 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.
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CONSUMER LOANS |
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Investments In Consumer Loans Equity Method Investees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSUMER LOANS | CONSUMER LOANS On June 20, 2023 Rithm Capital purchased a portfolio of consumer loans from Goldman Sachs Bank USA (the “Marcus loans”). The portfolio consists of unsecured fixed rate closed end installment loans. In tandem with this purchase, Rithm Capital entered into a loan servicing agreement with Goldman Sachs Bank USA (“Goldman”) whereby Goldman will continue to service the Marcus loans for the duration of their life. Rithm Capital, through certain limited liability companies (together, the “Consumer Loan Companies”), has a co-investment in a portfolio of consumer loans purchased from the joint venture SpringCastle. The portfolio includes personal unsecured loans and personal homeowner loans. OneMain Holdings Inc is the servicer of the loans and provides all servicing and advancing functions for the SpringCastle portfolio. As of June 30, 2023, Rithm Capital owns 53.5% of the limited liability company interests in, and consolidates, the Consumer Loan Companies. The following table summarizes characteristics of the consumer loan portfolio, inclusive of the SpringCastle and Marcus consumer loans:
See Note 18 regarding the financing of consumer loans. The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of consumer loans:
(A)Consumer loans are carried at fair value. See Note 19 regarding fair value measurements. The following table summarizes activities related to the carrying value of consumer loans:
(A)Represents draws on consumer loans with revolving privileges.
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SINGLE-FAMILY RENTAL PROPERTIES | SINGLE-FAMILY RENTAL PROPERTIES The following table summarizes the net carrying value of investments in SFR properties:
Depreciation expense for the six months ended June 30, 2023 and 2022 totaled $13.9 million and $6.6 million, respectively, and is included in Other Income (Loss), Net in the Consolidated Statements of Operations. As of June 30, 2023 and December 31, 2022, the carrying amount of the SFR properties includes capitalized acquisition costs of $7.0 million and $7.7 million, respectively. SFR properties held-for-sale are managed for near term sale and disposition. For the six months ended June 30, 2023, Rithm Capital transferred 30 SFR properties to held-for-sale. The following table summarizes the activity related to the net carrying value of investments in SFR properties:
Rithm Capital generally rents its SFR properties under non-cancelable lease agreements with a term of to two years. The following table summarizes our future minimum rental revenues under existing leases on SFR properties:
The following table summarizes the activity of the SFR portfolio by units:
See Note 18 regarding the financing of SFR Properties.
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MORTGAGE LOANS RECEIVABLE |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MORTGAGE LOANS RECEIVABLE | MORTGAGE LOANS RECEIVABLE Genesis specializes in originating and managing a portfolio of primarily short-term mortgage loans to fund the construction and development of, or investment in, residential properties. The following table summarizes Mortgage Loans Receivable outstanding by loan purpose as of June 30, 2023:
(A)Mortgage loans receivable are carried at fair value. See Note 19 regarding fair value measurements. (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:
The Company is subject to credit risk in connection with its investments in mortgage loans. The two primary components of credit risk are default risk, which is the risk that a borrower fails to make scheduled principal and interest payments, and severity risk, which is the risk of loss upon a borrower default on a mortgage loan or other secured or unsecured loan. Severity risk includes the risk of loss of value of the property or other asset, if any, securing the loan, as well as the risk of loss associated with taking over the property or other asset, if any, including foreclosure costs. The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of Mortgage Loans Receivable:
The following table summarizes the geographic distribution of the underlying Mortgage Loans Receivable as of June 30, 2023:
See Note 18 regarding the financing of Mortgage Loans Receivable.
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CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | CASH, CASH EQUIVALENTS AND RESTRICTED CASH Rithm Capital considers all highly liquid short-term investments with maturities of 90 days or less when purchased to be cash equivalents. Substantially all amounts on deposit with major financial institutions exceed insured limits. Restricted cash primarily relates to the financing of servicer advances that has been pledged to the note holders for interest and fees payable, cash related to securitization facilities (Note 20) and financing of consumer loans as well as real estate securities. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on Rithm Capital’s Consolidated Balance Sheets to the total of the same such amounts shown in the Consolidated Statements of Cash Flows:
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OTHER ASSETS AND LIABILITIES |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income Assets And Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER ASSETS AND LIABILITIES | OTHER ASSETS AND LIABILITIES Other Assets and Accrued Expenses and Other Liabilities consist of the following:
(A)Represents collateral posted as a result of changes in fair value of Rithm Capital’s (i) real estate securities securing its secured financing agreements and (ii) derivative instruments. (B)Represents equity investments in (i) commercial redevelopment projects and (ii) operating companies providing services throughout the real estate industry, including investments in Covius Holding Inc. (“Covius”), a provider of various technology-enabled services to the mortgage and real estate sectors, preferred stock in Valon Mortgage, Inc. (“Valon”), a residential mortgage servicing and technology company, and preferred stock in Credijusto Ltd. (“Covalto”), a financial services company. (C)Includes goodwill derived from the acquisition of Shellpoint Partners LLC (“Shellpoint”), Guardian Asset Management LLC (“Guardian”) and Genesis. (D)Represents loans made pursuant to a senior credit agreement and a senior subordinated credit agreement to an entity affiliated with funds managed by an affiliate of the Former Manager. The loans are accounted for under the fair value option. (E)Represents note receivable acquired pursuant to a loan sale agreement, secured by certain commercial properties. The note is accounted for under the fair value option. Real Estate Owned (REO) — REO assets are those individual properties acquired by Rithm Capital or where Rithm Capital receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession). Rithm Capital measures REO assets at the lower of cost or fair value, with valuation changes recorded in Other Income or Valuation and Credit Loss (Provision) Reversal on Loans and Real Estate Owned in the Consolidated Statements of Operations. REO assets are managed for prompt sale and disposition. The following table presents activity related to the carrying value of investments in REO:
(A)Recognized when control of the property has transferred to the buyer. As of June 30, 2023, Rithm Capital had residential mortgage loans and mortgage loans receivable that were in the process of foreclosure with unpaid principal balances of $66.5 million and $18.5 million, respectively. Notes and Loans Receivable — The following table summarizes the activity for notes and loans receivable:
The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of notes and loans receivable:
(A)Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements.
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EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND OTHER |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND OTHER | EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND OTHER General and Administrative expenses consist of the following:
Other Income (Loss) The following table summarizes the components of Other income (loss):
(A)Includes excess MSRs, servicer advance investments, consumer loans and other.
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GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETSAs a result of acquisitions, Rithm Capital identified intangible assets in the form of licenses, customer relationships, business relationships and trade names. The following table summarizes the carrying value of goodwill by reportable segment:
The following table summarizes the acquired identifiable intangible assets:
(A)Includes indefinite-lived intangible assets of $21.4 million and $21.4 million, respectively. (B)Includes indefinite-lived intangible assets of $1.9 million and $1.9 million, respectively. The following table summarizes the expected future amortization expense for acquired intangible assets as of June 30, 2023:
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OPERATING LEASES |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OPERATING LEASES | OPERATING LEASES Rithm Capital, through its wholly-owned subsidiaries, has leases on office space expiring through 2033. Rent expense, net of sublease income for the three months ended June 30, 2023 and 2022 totaled $10.9 million and $11.0 million, respectively, and for the six months ended June 30, 2023 and 2022 totaled $23.1 million and $23.7 million, respectively. The Company has leases that include renewal options and escalation clauses. The terms of the leases do not impose any financial restrictions or covenants. Operating lease right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term and lease liabilities represent obligations to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are grouped and presented as part of and , respectively, on the Consolidated Balance Sheet. See Note 13. The table below summarizes the future commitments under the non-cancelable leases:
The future commitments under the non-cancelable leases have not been reduced by the sublease rentals of $7.1 million due in the future periods. Other information related to operating leases is summarized below:
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DERIVATIVES |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES | DERIVATIVES Rithm Capital enters into economic hedges including interest rate swaps and to-be-announced forward contract positions (“TBAs”) to hedge a portion of its interest rate risk exposure. Interest rate risk is sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations, as well as other factors. Rithm Capital’s credit risk with respect to economic hedges is the risk of default on Rithm Capital’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. Rithm Capital may at times hold TBAs in order to mitigate Rithm Capital’s interest rate risk on certain specified mortgage-backed securities and MSRs. Amounts or obligations owed by or to Rithm Capital are subject to the right of set-off with the TBA counterparty. As part of executing these trades, Rithm Capital may enter into agreements with its TBA counterparties that govern the transactions for the TBA purchases or sales made, including margin maintenance, payment and transfer, events of default, settlements and various other provisions. Changes in the value of derivatives designed to protect against mortgage-backed securities and MSR fair value fluctuations, or hedging gains and losses, are reflected in the tables below. As of June 30, 2023, Rithm Capital also held interest rate lock commitments (“IRLCs”), which represent a commitment to a particular interest rate provided the borrower is able to close the loan within a specified period, and forward loan sale and securities delivery commitments, which represent a commitment to sell specific residential mortgage loans at prices which are fixed as of the forward commitment date. Rithm Capital enters into forward loan sale and securities delivery commitments in order to hedge the exposure related to IRLCs and residential mortgage loans that are not covered by residential mortgage loan sale commitments. Derivatives are recorded at fair value on the Consolidated Balance Sheets as follows:
(A)Net of $1.0 billion and $1.2 billion of related variation margin balances as of June 30, 2023 and December 31, 2022, respectively. The following table summarizes notional amounts related to derivatives:
(A)Includes $18.8 billion notional of receive LIBOR or Secured Overnight Financing Rate (“SOFR”)/pay fixed of 2.2% and $2.4 billion notional of receive fixed of 3.4%/pay LIBOR or SOFR with weighted average maturities of 31 months and 43 months, respectively, as of June 30, 2023. Includes $23.1 billion notional of receive LIBOR or SOFR/pay fixed of 1.9% and $0.0 billion notional of receive fixed of 0.0%/pay LIBOR or SOFR with weighted average maturities of 35 months and 0 months, respectively, as of December 31, 2022. (B)Represents the notional amount of Agency RMBS, classified as derivatives. The following table summarizes gain (loss) on derivatives and the related location on the Consolidated Statements of Operations:
(A)Represents unrealized gain (loss). (B)Excludes no loss for the three months ended June 30, 2023 and 2022 included within Servicing Revenue, Net (Note 5). Excludes no loss and $76.8 million loss for the six months ended June 30, 2023 and 2022, respectively, included within Servicing Revenue, Net. (C)Excludes $11.5 million loss and $526.9 million gain for the three months ended June 30, 2023 and 2022, respectively, and $1.6 million loss and $1.1 billion gain for the six months ended June 30, 2023 and 2022, respectively, included within Gain on Originated Residential Mortgage Loans, Held-for-Sale, Net (Note 8).
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DEBT OBLIGATIONS |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT OBLIGATIONS | DEBT OBLIGATIONS The following table summarizes Secured Financing Agreements and Secured Notes and Bonds Payable debt obligations:
(A)Net of deferred financing costs. (B)All debt obligations with a stated maturity through the date of issuance were refinanced, extended or repaid. (C)Includes approximately $116.9 million of associated accrued interest payable as of June 30, 2023. (D)Includes $972.3 million face amount of repurchase agreements collateralized by U.S. Treasury Bills. All repurchase agreements have a fixed rate. (E)All LIBOR or SOFR-based floating interest rates. (F)Includes $255.4 million which bear interest at an average fixed rate of 5.1% with the remaining having LIBOR or SOFR-based floating interest rates. (G)Includes $202.7 million of corporate loans which bear interest at a fixed rate of 3.7%. (H)Includes $2.8 billion of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month SOFR, and (ii) a margin ranging from 2.5% to 3.3%; and $1.6 billion of capital market notes with fixed interest rates ranging 3.0% to 5.4%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the MSRs and MSR financing receivables securing these notes. (I)$1.2 billion face amount of the notes have a fixed rate of 1.6% while the remaining notes bear interest equal to the sum of (i) a floating rate index equal to one-month SOFR, and (ii) a margin ranging from 1.5% to 3.3%. Collateral includes servicer advance investments, as well as servicer advances receivable related to the MSRs and MSR financing receivables owned by NRM and the Mortgage Company. (J)Represents $650.0 million securitization backed by a revolving warehouse facility to finance newly originated first-lien, fixed- and adjustable-rate residential mortgage loans which bears interest equal to one-month LIBOR plus 1.2%. Collateral carrying value includes cash held in the securitization trust required to meet collateral requirements. (K)Includes (i) SpringCastle debt, which is primarily composed of the following classes of asset-backed notes held by third parties: $238.2 million UPB of Class A notes with a coupon of 2.0% and $53.0 million UPB of Class B notes with a coupon of 2.7% and (ii) $1.2 billion of debt collateralized by the Marcus loans bearing interest at the sum of one-month SOFR plus a margin of 3.0%. General Certain of the debt obligations included above are obligations of Rithm Capital’s consolidated subsidiaries, which own the related collateral. In some cases, such collateral is not available to other creditors of Rithm Capital. As of June 30, 2023, Rithm Capital has margin exposure on $12.8 billion of secured financing agreements. To the extent that the value of the collateral underlying these secured financing agreements declines, Rithm Capital may be required to post margin, which could significantly impact its liquidity. The following table summarizes activities related to the carrying value of debt obligations:
(A)Rithm Capital net settles daily borrowings and repayments of the Secured Notes and Bonds Payable on its servicer advances. Maturities Contractual maturities of debt obligations as of June 30, 2023 are as follows:
(A)Includes secured notes and bonds payable of $5.4 billion. (B)Includes secured financing agreements and secured notes and bonds payable of $12.8 billion and $5.6 billion, respectively. Secured financing agreements with contractual maturities prior to December 31, 2023 includes $8.6 billion collateralized by Agency RMBS or U.S. Treasury Bills. Borrowing Capacity The following table represents borrowing capacity as of June 30, 2023:
(A)Although available financing is uncommitted, Rithm Capital’s unused borrowing capacity is available if it has additional eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements, including any applicable advance rate. Certain of the debt obligations are subject to customary loan covenants and event of default provisions, including event of default provisions triggered by certain specified declines in Rithm Capital’s equity or a failure to maintain a specified tangible net worth, liquidity, or indebtedness to tangible net worth ratio. Rithm Capital was in compliance with all of its debt covenants as of June 30, 2023. 2025 Senior Unsecured Notes On September 16, 2020, the Company, as borrower, completed a private offering of $550.0 million aggregate principal amount of 6.250% senior unsecured notes due 2025 (the “2025 Senior Notes”). Interest on the 2025 Senior Notes accrue at the rate of 6.250% per annum with interest payable semi-annually in arrears on each April 15 and October 15. The 2025 Senior Notes mature on October 15, 2025 and the Company may redeem some or all of the 2025 Senior Notes at the Company’s option, at any time from time to time, on or after October 15, 2022 at a price equal to the following fixed redemption prices (expressed as a percentage of principal amount of the 2025 Senior Notes to be redeemed):
Net proceeds from the offering were approximately $544.5 million, after deducting the initial purchasers’ discounts and commissions and estimated offering expenses payable by the Company. The Company incurred fees of approximately $8.3 million in relation to the issuance of the 2025 Senior Notes. These fees were capitalized as debt issuance cost and are grouped and presented as part of Unsecured Senior Notes, Net of Issuance Costs on the Consolidated Balance Sheets. For the three months ended June 30, 2023, the Company recognized interest expense of $8.6 million. At June 30, 2023, the unamortized debt issuance costs was approximately $4.0 million. The 2025 Senior Notes are senior unsecured obligations and rank pari passu in right of payment with all of the Company’s existing and future senior unsecured indebtedness and senior unsecured guarantees. At the time of issuance, the 2025 Senior Notes were not guaranteed by any of the Company’s subsidiaries and none of its subsidiaries are required to guarantee the 2025 Senior Notes in the future, except under limited specified circumstances. The 2025 Senior Notes contain financial covenants and other non-financial covenants, including, among other things, limits on the ability of the Company and its restricted subsidiaries to incur certain indebtedness (subject to various exceptions), requires that the Company maintain total unencumbered assets (as defined in the Indenture, dated September 16, 2020, pursuant to which the 2025 Senior Notes were issued) of not less than 120% of the aggregate principal amount of the outstanding unsecured debt, and imposes certain requirements in order for the Company to merge or consolidate with or transfer all or substantially all of its assets to another person, in each case subject to certain qualifications set forth in the debt agreement. If the Company were to fail to comply with these covenants, after the expiration of the applicable cure periods, the debt maturity could be accelerated or other remedies could be sought by the lenders. As of June 30, 2023, the Company was in compliance with all covenants. In the event of a change of control, each holder of the 2025 Senior Notes will have the right to require the Company to repurchase all or any part of the outstanding balance at a purchase price of 101% of the principal amount of the 2025 Senior Notes repurchased, plus accrued and unpaid interest, if any, to, but not including, the date of such repurchase.
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS U.S. GAAP requires the categorization of fair value measurement into three broad levels which form a hierarchy based on the transparency of inputs to the valuation. Level 1 – Quoted prices in active markets for identical instruments. Level 2 – Valuations based principally on other observable market parameters, including: •Quoted prices in active markets for similar instruments, •Quoted prices in less active or inactive markets for identical or similar instruments, •Other observable inputs (such as interest rates, yield curves, volatilities, prepayment rates, loss severities, credit risks and default rates), and •Market corroborated inputs (derived principally from or corroborated by observable market data). Level 3 – Valuations based significantly on unobservable inputs. Rithm Capital follows this hierarchy for its fair value measurements. The classifications are based on the lowest level of input that is significant to the fair value measurement. The carrying values and fair values of assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of June 30, 2023 were as follows:
(A)The notional amount represents the total unpaid principal balance of the residential mortgage loans underlying the MSRs, MSR financing receivables and Excess MSRs. Rithm Capital does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios. (B)Includes U.S. Treasury Bills classified as Level 1 and held at amortized cost basis of $979.0 million (see Note 7). (C)Includes Rithm Capital’s economic interests in the VIEs consolidated and accounted for under the collateralized financing entity (“CFE”) election. As of June 30, 2023, the fair value of Rithm Capital’s interests in the mortgage loans receivable securitization was $45.6 million. (D)Excludes the indirect equity investment in a commercial redevelopment project accounted for at fair value on a recurring basis based on NAV of Rithm Capital’s investment. The investment had a fair value of $0 as of June 30, 2023. (E)Includes SCFT 2020-A and 2022-RTL1 mortgage-backed securities issued for which the fair value option for financial instruments was elected and resulted in a fair value of $574.1 million as of June 30, 2023. The following table summarizes assets measured at fair value on a recurring basis using Level 3 inputs:
(A)Includes the recapture agreement for each respective pool, as applicable. (B)Amounts include Rithm Capital’s portion of the Excess MSRs held by the respective joint ventures in which Rithm Capital has a 50% interest. (C)For the purpose of this table, the IRLC asset and liability positions are shown net. (D)Gain (loss) recorded in earnings during the period is attributable to the change in unrealized gain (loss) relating to Level 3 assets still held at the reporting dates and realized gain (loss) recorded during the period. (E)See Note 5 for further details on the components of Servicing Revenue, Net. (F)Gain (loss) included in Unrealized Gain (Loss) on Available-for-Sale Securities, Net in the Consolidated Statements of Comprehensive Income. (G)Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection. Liabilities measured at fair value on a recurring basis using Level 3 inputs changed as follows:
(A)Gain (loss) recorded in earnings during the period is attributable to the change in unrealized gain (loss) relating to Level 3 liabilities still held at the reporting dates and realized gain (loss) recorded during the period. Excess MSRs, MSRs and MSR Financing Receivables Valuation The following table summarizes certain information regarding the ranges and weighted averages of inputs used as of June 30, 2023:
(A)Weighted by fair value of the portfolio. (B)Projected annualized weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (C)Projected percentage of residential mortgage loans in the pool for which the borrower will miss a mortgage payments. (D)Percentage of voluntarily prepaid loans that are expected to be refinanced by the related servicer or subservicer, as applicable. (E)Weighted average total mortgage servicing amount, in excess of the basic fee as applicable, measured in basis points (“bps”). A weighted average cost of subservicing of $6.85 – $7.01 ($6.93) per loan per month was used to value the agency MSRs. A weighted average cost of subservicing of $7.32 – $9.62 ($9.15) per loan per month was used to value the Non-Agency MSRs, including MSR financing receivables. A weighted average cost of subservicing of $8.30 per loan per month was used to value the Ginnie Mae MSRs. (F)Weighted average maturity of the underlying residential mortgage loans in the pool. (G)For certain pools, recapture rate represents the expected recapture rate with the successor subservicer appointed by NRM. (H)Recapture is not considered a significant input for MSRs and MSR financing receivables. With respect to valuing the PHH-serviced MSRs and MSR financing receivables, which include a significant servicer advances receivable component, the cost of financing servicer advances receivable is assumed to be LIBOR plus 2.1%. As of June 30, 2023, a weighted average discount rate of 8.3% (range of 8.0% – 8.5%) was used to value Rithm Capital’s Excess MSRs (directly and through equity method investees). As of June 30, 2023, a weighted average discount rate of 8.5% (range of 7.8% – 10.8%) was used to value Rithm Capital’s MSRs and MSR financing receivables. Servicer Advance Investments Valuation The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing the servicer advance investments, including the basic fee component of the related MSRs:
(A)Projected annual weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (B)Mortgage servicing amount is net of 5.74 bps which represents the amount Rithm Capital paid its servicers as a monthly servicing fee. (C)Weighted average maturity of the underlying residential mortgage loans in the pool. Real Estate and Other Securities Valuation As of June 30, 2023, real estate securities valuation methodology and results are detailed below. Treasury securities are valued using market-based prices published by the U.S. Department of the Treasury and classified as Level 1.
(A)Rithm Capital generally obtained pricing service quotations or broker quotations from two sources, one of which was generally the seller (the party that sold Rithm Capital the security) for Non-Agency RMBS. Rithm Capital evaluates quotes received, determines one as being most representative of fair value and does not use an average of the quotes. Even if Rithm Capital receives two or more quotes on a particular security that come from non-selling brokers or pricing services, it does not use an average because it believes using an actual quote more closely represents a transactable price for the security than an average level. Furthermore, in some cases, for Non-Agency RMBS, there is a wide disparity between the quotes Rithm Capital receives. Rithm Capital believes using an average of the quotes in these cases would not represent the fair value of the asset. Based on Rithm Capital’s own fair value analysis, it selects one of the quotes which is believed to more accurately reflect fair value. Rithm Capital has not adjusted any of the quotes received in the periods presented. These quotations are generally received via email and contain disclaimers which state that they are “indicative” and not “actionable” — meaning that the party giving the quotation is not bound to purchase the security at the quoted price. Rithm Capital’s investments in Agency RMBS are classified within Level 2 of the fair value hierarchy because the market for these securities is very active and market prices are readily observable. The third-party pricing services and brokers engaged by Rithm Capital (collectively, “valuation providers”) use either the income approach or the market approach, or a combination of the two, in arriving at their estimated valuations of RMBS. Valuation providers using the market approach generally look at prices and other relevant information generated by market transactions involving identical or comparable assets. Valuation providers using the income approach create pricing models that generally incorporate such assumptions as discount rates, expected prepayment rates, expected default rates and expected loss severities. Rithm Capital has reviewed the methodologies utilized by its valuation providers and has found them to be consistent with GAAP requirements. In addition to obtaining multiple quotations, when available, and reviewing the valuation methodologies of its valuation providers, Rithm Capital creates its own internal pricing models for Level 3 securities and uses the outputs of these models as part of its process of evaluating the fair value estimates it receives from its valuation providers. These models incorporate the same types of assumptions as the models used by the valuation providers, but the assumptions are developed independently. These assumptions are regularly refined and updated at least quarterly by Rithm Capital and reviewed by its valuation group, which is separate from its investment acquisition and management group, to reflect market developments and actual performance. For 51.9% of Non-Agency RMBS, the ranges and weighted averages of assumptions used by Rithm Capital’s valuation providers are summarized in the table below. The assumptions used by Rithm Capital’s valuation providers with respect to the remainder of Non-Agency RMBS were not readily available.
(a)Represents the annualized rate of the prepayments as a percentage of the total principal balance of the pool. (b)Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance of the pool. (c)Represents the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding balance. (B)Rithm Capital was unable to obtain quotations from more than one source on these securities. (C)Includes Rithm Capital’s investments in interest-only notes for which the fair value option for financial instruments was elected. Residential Mortgage Loans Valuation Rithm Capital, through its Mortgage Company, originates residential mortgage loans that it intends to sell into Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securitizations. Residential mortgage loans held-for-sale, at fair value are typically pooled together and sold into certain exit markets, depending upon underlying attributes of the loan, such as agency eligibility, product type, interest rate and credit quality. The Mortgage Company also originates non-qualified mortgage loans that it intends to sell to private investors. Residential mortgage loans held-for-sale, at fair value are valued using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. As these prices are derived from market observable inputs, Rithm Capital classifies these valuations as Level 2 in the fair value hierarchy. Originated residential mortgage loans held-for-sale for which there is little to no observable trading activity of similar instruments are valued using Level 3 measurements based upon dealer price quotes or historical sale transactions for similar loans. Residential mortgage loans held-for-sale, at fair value also includes nonconforming seasoned mortgage loans acquired and identified for securitization, which are valued using internal pricing models to forecast loan level cash flows based on a potential securitization exit using inputs such as default rates, prepayments speeds and discount rates, and may include adjustments based on consensus pricing (broker quotes). As the internal pricing model is based on certain unobservable inputs, Rithm Capital classifies these valuations as Level 3 in the fair value hierarchy. For non-performing loans, asset liquidation cash flows are derived based on the estimated time to liquidate the loan, the estimated value of the collateral, expected costs and estimated home price levels. Estimated cash flows for both performing and non-performing loans are discounted at yields considered appropriate to arrive at a reasonable exit price for the asset. Rithm Capital classifies these valuations as Level 3 in the fair value hierarchy. The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing residential mortgage loans held-for-sale, at fair value classified as Level 3:
The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing residential mortgage loans held-for-investment, at fair value classified as Level 3:
Consumer Loans Valuation The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing consumer loans held-for-investment, at fair value, classified as Level 3:
Mortgage Loans Receivable Valuation The estimated fair value approximates carrying value as most loans are variable-rate that reprice frequently and with minimal credit risk and severity risk. Rithm Capital classifies mortgage loans receivable as Level 3 in the fair value hierarchy. Rithm Capital has securitized certain mortgage loans receivable which are held as part of a collateralized financing entity (“CFE”). A CFE is a variable interest entity that holds financial assets, issues beneficial interests in those assets and has no more than nominal equity, and the beneficial interests have contractual recourse only to the related assets of the CFE. GAAP allows entities to elect to measure both the financial assets and financial liabilities of the CFE using the more observable of the fair value of the financial assets and the fair value of the financial liabilities of the CFE. Rithm Capital has elected the fair value option (“FVO”) for initial and subsequent recognition of the debt issued by its consolidated securitization trust and has determined that the consolidated securitization trust meets the definition of a CFE. See Note 20 for further discussion regarding VIEs and securitization trusts. Rithm Capital determined the inputs to the fair value measurement of the financial liabilities of its CFE to be more observable than those of the financial assets and, as a result, has used the fair value of the financial liabilities of the CFE to measure the fair value of the financial assets of the CFE. The fair value of the debt issued by the CFE is typically valued using external pricing data, which includes third-party valuations. The securitized mortgage loans receivable, which are assets of the CFE, are included in Mortgage Loans Receivable, at Fair Value, on the Company’s Consolidated Balance Sheets. The debt issued by the CFE is included in Secured Notes and Bonds Payable on the Company’s Consolidated Balance Sheets. Unrealized gain (loss) from changes in fair value of the debt issued by the CFE is included in Other Income (Loss), Net in the Company’s Consolidated Statements of Operations. The securitized mortgage loans receivable and the debt issued by the Company’s CFE are both classified as Level 2. Derivatives Valuation Rithm Capital enters into economic hedges including interest rate swaps, caps and TBAs, which are categorized as Level 2 in the valuation hierarchy. Rithm Capital generally values such derivatives using quotations, similarly to the method of valuation used for Rithm Capital’s other assets that are classified as Level 2 in the fair value hierarchy. As a part of the mortgage loan origination business, Rithm Capital enters into forward loan sale and securities delivery commitments, which are valued based on observed market pricing for similar instruments and therefore, are classified as Level 2. In addition, Rithm Capital enters into IRLCs, which are valued using internal pricing models (i) incorporating market pricing for instruments with similar characteristics, (ii) estimating the fair value of the servicing rights expected to be recorded at sale of the loan and (iii) adjusting for anticipated loan funding probability. Both the fair value of servicing rights expected to be recorded at the date of sale of the loan and anticipated loan funding probability are significant unobservable inputs and therefore, IRLCs are classified as Level 3 in the fair value hierarchy. The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing IRLCs:
Asset-Backed Securities Issued Rithm Capital was deemed to be the primary beneficiary of the SCFT 2020-A securitization, and therefore, Rithm Capital’s Consolidated Balance Sheets include the asset-backed securities issued by the SCFT 2020-A trust. Rithm Capital elected the fair value option for these financial instruments and the asset-backed securities issued were valued consistently with Rithm Capital’s Non-Agency RMBS described above. The following table summarizes certain information regards the ranges and weighted averages of inputs used in valuing Asset-Backed Securities Issued:
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets are measured at fair value on a nonrecurring basis; that is, they are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances, such as when there is evidence of impairment. For residential mortgage loans held-for-sale, SFR properties and foreclosed real estate accounted for as REO, Rithm Capital applies the lower of cost or fair value accounting and may be required, from time to time, to record a nonrecurring fair value adjustment. Upon the occurrence of certain events, the Company re-measures the fair value of long-lived assets, including property, plant and equipment, operating lease ROU assets, intangible assets and goodwill if an impairment or observable price adjustment is recognized in the current period. At June 30, 2023, assets measured at fair value on a nonrecurring basis were $95.4 million. The $95.4 million of assets include approximately $83.9 million of residential mortgage loans held-for-sale and $11.5 million of REO. The fair value of Rithm Capital’s residential mortgage loans, held-for-sale is estimated based on a discounted cash flow model analysis using internal pricing models and is categorized within Level 3 of the fair value hierarchy. The following table summarizes the inputs used in valuing these residential mortgage loans as of June 30, 2023:
(A)The weighted average life is based on the expected timing of the receipt of cash flows. (B)Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance. (C)Loss severity is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding loan balance. The fair value of REO is estimated using a broker’s price opinion discounted based upon Rithm Capital’s experience with actual liquidation values and, therefore, is categorized within Level 3 of the fair value hierarchy. These discounts to the broker price opinion generally range from 10% – 25% (weighted average of 22%), depending on the information available to the broker. The total change in the recorded value of assets for which a fair value adjustment has been included in the Consolidated Statements of Operations for the six months ended June 30, 2023 consisted of a reversal of valuation allowance of $2.1 million for residential mortgage loans and a reversal of valuation allowance of $0.1 million for REO.
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VARIABLE INTEREST ENTITIES |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES In the normal course of business, Rithm Capital enters into transactions with special purpose entities (“SPEs”), which primarily consist of trusts established for a limited purpose. The SPEs have been formed for the purpose of transactions in which the Company transfers assets into an SPE in return for various forms of debt obligations supported by those assets. In these transactions, the Company typically receives cash and/or other interests in the SPE as proceeds for the transferred assets. The Company retains the right to service the transferred receivables. The Company evaluates its interests in each SPE for classification as a variable interest entity (“VIE”). VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. A VIE is required to be consolidated only by its primary beneficiary, which is defined as the party who has the power to direct the activities of a VIE that most significantly impact its economic performance and who has the obligation to absorb losses or the right to receive benefits from the VIE that could be potentially significant to the VIE. To assess whether Rithm Capital has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, Rithm Capital considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes identifying (i) the activities that most significantly impact the VIE’s economic performance and (ii) which party, if any, has power over those activities. To assess whether Rithm Capital has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, Rithm Capital considers all of its economic interests and applies judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. When an SPE meets the definition of a VIE and the Company determines that it is the primary beneficiary, the Company includes the SPE in its consolidated financial statements. For certain consolidated VIEs, Rithm Capital has elected to account for the assets and liabilities of these entities as collateralized financing entities (“CFE”). A CFE is a variable interest entity that holds financial assets and issues beneficial interests in those assets, and these beneficial interests have contractual recourse only to the related assets of the CFE. Accounting guidance under GAAP for CFEs allows companies to elect to measure both the financial assets and financial liabilities of a CFE using the more observable of the fair value of the financial assets or fair value of the financial liabilities. The net equity in an entity accounted for under the CFE election effectively represents the fair value of the beneficial interests Rithm Capital owns in the entity. Consolidated VIEs Servicer Advances Rithm Capital, through a taxable wholly-owned subsidiary, is the managing member of Advance Purchaser and owned approximately 89.3% of Advance Purchaser as of June 30, 2023 and is deemed to be the primary beneficiary of Advance Purchaser as a result of its ability to direct activities that most significantly impact the economic performance of the entities and its ownership of a significant equity investment. See Note 6 for details. Newrez Joint Ventures A wholly-owned subsidiary of Newrez, Newrez Ventures LLC (formerly known as Shelter Mortgage Company LLC) (“Newrez Ventures”), is a mortgage originator specializing in retail originations. Newrez Ventures operates its business through a series of joint ventures (“Newrez JVs”) and is deemed to be the primary beneficiary of the joint ventures as a result of its ability to direct activities that most significantly impact the economic performance of the entities and its ownership of a significant equity investment. Residential Mortgage Loans In May 2021, Newrez issued $750.0 million in notes through a securitization facility (the “2021-1 Securitization Facility”) that bear interest at 30-day LIBOR plus a margin. The 2021-1 Securitization Facility is secured by newly originated, first-lien, fixed- and adjustable-rate residential mortgage loans eligible for purchase by the GSEs and Ginnie Mae. Through a master repurchase agreement, Newrez sells its originated residential mortgage loans to the 2021-1 Securitization Facility, which then issues notes to third party qualified investors, with Newrez retaining the trust certificate. The loans serve as collateral with the proceeds from the note issuance ultimately financing the originations. The 2021-1 Securitization Facility will terminate on the earlier of (i) the three-year anniversary of the initial closing date, (ii) the Company exercising its right to optional prepayment in full or (iii) a repurchase triggering event. The Company determined it is the primary beneficiary of the 2021-1 Securitization Facility as it has both (i) the power to direct the activities of a VIE that most significantly impact its economic performance and (ii) the obligation to absorb losses or the right to receive benefits from the VIE that could be potentially significant to the VIE. Caliber Mortgage Participant I, LLC was formed to acquire, receive, participate, hold, release and dispose of participation interests in certain of Caliber’s residential mortgage loans held for sale (“MLHFS PC”). The Caliber Mortgage Participant I, LLC transfers the MLHFS PC in exchange for cash. Caliber is the primary beneficiary of the VIE and therefore, consolidates the SPE. The transferred MLHFS PC is classified on the Consolidated Balance Sheets as Residential Mortgage Loans, Held-for-Sale and the related warehouse credit facility liabilities as part of Secured Financing Agreements. Caliber retains the risks and benefits associated with the assets transferred to the SPEs. Caliber remains the servicer of the underlying residential mortgage loans and has the power to direct the SPE’s activities. Holders of the term notes issued by the Trust can look only to the assets of the Trust for satisfaction of the debt and have no recourse against Caliber. Consumer Loan Companies Rithm Capital has a co-investment in a portfolio of consumer loans held through the Consumer Loan Companies. As of June 30, 2023, Rithm Capital owns 53.5% of the limited liability company interests in, and consolidates, the Consumer Loan Companies. On September 25, 2020, certain entities comprising the Consumer Loan Companies, in a private transaction, issued $663.0 million of asset-backed notes (“SCFT 2020-A”) securitized by a portfolio of consumer loans. The Consumer Loan Companies consolidate certain entities that issued securitized debt collateralized by the consumer loans (the “Consumer Loan SPVs”). The Consumer Loan SPVs are VIEs of which the Consumer Loan Companies are the primary beneficiaries. Securitized Mortgage Loans Receivable In March 2022, Rithm Capital formed a securitization facility that issued securitized debt collateralized by mortgage loans receivable (the “2022-RTL1 Securitization”). The 2022-RTL1 Securitization consists of a pool of performing, adjustable-rate and fixed-rate, interest-only, mortgage loans (construction, renovation and bridge), secured by a first lien or a first and second lien on a non-owner occupied mortgaged property with original terms to maturity of up to 36 months, with an aggregate UPB of approximately $347.3 million and an aggregate principal limit of approximately $456.7 million as of June 30, 2023. In addition to pass-through certificates sold to third parties, Rithm Capital acquired all of the residual tranche certificate, which bears no interest, for $20.9 million. Rithm Capital evaluated the purchased residual tranche certificate as a variable interest in the trust and concluded that the residual tranche certificate will absorb a majority of the trust’s expected losses or receive a majority of the trust’s expected residual returns. Rithm Capital also concluded that the securitization’s asset manager, a wholly-owned subsidiary of Rithm Capital, has the ability to direct activities that could impact the trust’s economic performance. As a result, Rithm Capital consolidates the trust. The table below presents the carrying value and classification of the assets and liabilities of consolidated VIEs on the Consolidated Balance Sheets:
(A)The creditors of the VIEs do not have recourse to the general credit of Rithm Capital, and the assets of the VIEs are not directly available to satisfy Rithm Capital’s obligations. Non-Consolidated VIEs The following table summarizes the carrying value of the Company’s unconsolidated bonds retained pursuant to required risk retention regulations which reflects the Company’s maximum exposure to loss, as well as the UPB of transferred loans. These bonds are grouped and presented as part of Real Estate and Other Securities on the Consolidated Balance Sheets:
(A)Represents the percentage of the UPB that is 60+ days delinquent. (B)Excludes bonds retained by Rithm Capital. (C)Includes bonds retained pursuant to required risk retention regulations. (D)Classified within Level 3 of the fair value hierarchy as the valuation is based on certain unobservable inputs including discount rate, prepayment rates and loss severity. See Note 19 for details on unobservable inputs. Noncontrolling Interests Noncontrolling interests represent the ownership interests in certain consolidated subsidiaries held by entities or persons other than Rithm Capital. These interests are related to noncontrolling interests in consolidated entities that hold Rithm Capital’s servicer advance investments (Note 6), the Newrez JVs (Note 8) and Consumer loans (Note 9). Others’ interests in the equity of consolidated subsidiaries is computed as follows:
Others’ interests in the net income (loss) is computed as follows:
(A)Rithm Capital owned 89.3% of Advance Purchaser as of June 30, 2023 and 2022.
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY AND EARNINGS PER SHARE | EQUITY AND EARNINGS PER SHARE Equity and Dividends Rithm Capital’s certificate of incorporation authorizes 2.0 billion shares of common stock, par value $0.01 per share, and 100.0 million shares of preferred stock, par value $0.01 per share. On August 5, 2022, Rithm Capital entered into a Distribution Agreement to sell shares of its common stock, par value $0.01 per share (the “ATM Shares”), having an aggregate offering price of up to $500.0 million, from time to time, through an “at-the-market” equity offering program (the “ATM Program”). No share issuances were made during the six months ended June 30, 2023 under the ATM Program. On December 15, 2022, Rithm Capital’s board of directors approved the Stock Repurchase Program authorizing the repurchase of up to $200.0 million of its common stock and $100.0 million of its preferred stock through December 31, 2023. The objective of the Stock Repurchase Program is to seek flexibility to return capital when deemed accretive to shareholders. Repurchases may be made from time to time through open market purchases or privately negotiated transactions, pursuant to one or more plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934 or by means of one or more tender offers, in each case, as permitted by securities laws and other legal requirements. During the six months ended June 30, 2023, the Company did not repurchase any shares of its common stock or preferred stock. Purchases and sales of Rithm Capital’s securities by the Company’s officers and directors are subject to the Rithm Capital Corp. Insider Trading Compliance Policy. Further, as of June 30, 2023, the Company has not established a trading plan pursuant to Rule 10b5-1 under the Exchange Act. The table below summarizes preferred shares:
(A)Each series has a liquidation preference or par value of $25.00 per share. (B)Carrying value reflects par value less discount and issuance costs. (C)Fixed-to-floating rate cumulative redeemable preferred. (D)Fixed-rate reset cumulative redeemable preferred. On June 23, 2023, Rithm Capital’s board of directors declared second quarter 2023 preferred dividends of $0.47 per share of the Series A, $0.45 per share of the Series B, $0.40 per share of the Series C and $0.44 per share of the 7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock (the “Series D”), or $2.9 million, $5.0 million, $6.3 million and $8.1 million, respectively. Common dividends have been declared as follows:
Common Stock Purchase Warrants During the second quarter of 2020, the Company issued warrants (the “2020 Warrants”) in conjunction with the issuance of a term loan, which was fully repaid in the third quarter of 2020, that provided the holders the right to acquire, subject to anti-dilution adjustments, up to 43.4 million shares of the Company’s common stock in the aggregate. The 2020 Warrants were exercisable in cash or on a cashless basis and were set to expire on May 19, 2023 and were exercisable, in whole or in part, at any time or from time to time after September 19, 2020 at the following prices (subject to certain anti-dilution adjustments): approximately 24.6 million shares of common stock at $6.11 per share and approximately 18.9 million shares of common stock at $7.94 per share. On February 21, 2023, warrant holders exercised all remaining and outstanding warrants to purchase up to approximately 25.6 million shares of the Company’s common stock. The warrants were exercised on a cashless basis, using the market price of the Company’s common stock on February 17, 2023, which was the last trading day preceding the date of exercise of the warrants, resulting in the issuance of approximately 9.3 million shares of the Company’s common stock on February 23, 2023. The table below summarizes the 2020 Warrants at June 30, 2023:
(A)Reflects the incremental number of additional common stock issuable upon exercise of warrants in accordance with the warrant agreement. Option Plan As of June 30, 2023, outstanding options were as follows:
The following table summarizes outstanding options as of June 30, 2023. The last sales price on the New York Stock Exchange for Rithm Capital’s common stock in the quarter ended June 30, 2023 was $9.35 per share.
(A)Options expire on the tenth anniversary from date of grant. (B)The exercise prices are subject to adjustment in connection with return of capital dividends. The following table summarizes activity in outstanding options:
Stock-Based Compensation On May 25, 2023, Rithm Capital’s stockholders adopted the Rithm Capital Corp. 2023 Omnibus Incentive Plan (the “2023 Plan”), which became effective as of May 25, 2023. The 2023 Plan replaced Rithm Capital’s Nonqualified Stock Option and Incentive Award Plan which became effective on May 15, 2013, and was amended and restated as of November 4, 2014 and as of February 16, 2023, which expired by its terms on April 29, 2023 (the “2013 Plan”). Any stock-based awards issued under the 2013 Plan will continue to be subject to the terms and provisions of the 2013 Plan applicable to such awards. The Company may grant stock-based compensation to its officers and other employees and non-employee directors for the purpose of providing incentives and rewards for service or performance. Stock-based awards issued under the Plan include time-based and performance-based restricted stock unit awards (“RSU” and “PSU” awards, respectively), and restricted stock awards (“RSA”), and may include other forms of equity-based compensation. RSU and PSU awards are an agreement to issue an equivalent number of shares of the Company’s common stock, plus any equivalent shares for dividends declared on the Company’s common stock, at the time the award vests. RSAs and RSU awards vest over a specified service period. PSU awards vest over a specified service period subject to achieving long-term performance criteria. Shares underlying RSU and PSU awards are issued when the awards vest. Statutory tax withholding obligations may be covered via (i) election of a cash payment, (ii) net settlement of the applicable shares of stock underlying the RSUs or PSUs, (iii) a broker assisted sale process or (iv) any such other method approved by Rithm Capital. If applicable, the fair value of shares withheld for tax withholdings is recorded as a reduction to additional paid-in capital. During the six months ended June 30, 2023, the Company granted RSU awards to employees with a grant date fair value of $12.3 million, inclusive of dividend equivalents, which vest ratably over a three-year period. The Company also granted PSU awards to employees which vest at the end of a three-year period provided that specified performance criteria are met. The fair value of the PSU awards granted during the six months ended June 30, 2023 as of the grant date was $23.1 million, assuming the maximum levels of performance are achieved. The table below summarizes the Company’s awards granted, forfeited or vested under the 2013 Plan and the 2023 Plan during the six months ended June 30, 2023:
(A)Number of PSUs assumes maximum levels of performance are achieved for outstanding unvested PSU awards. The Company measures and recognizes compensation expense for all stock-based payment awards made to employees and non-employee directors based on their fair value. The fair value of granted awards is determined based on the closing price of the Company’s common stock on the date of grant of the awards. Stock-based compensation is recorded within Compensation and benefits in the Consolidated Statements of Operations and corresponding recording within Additional paid-in-capital in the Consolidated Balance Sheets and Consolidated Statements of Changes in Stockholders’ Equity. For RSUs, compensation expense is recognized on a straight-line basis over each award’s respective service period. For PSU awards, the Company estimates the probability that the performance criteria will be achieved and recognizes compensation expense only for those awards expected to vest using the accelerated attribution model. The Company reevaluates its estimate each reporting period and recognizes a cumulative effect adjustment to expense if estimates change from the prior period. For RSAs, compensation expense is recognized using the accelerated attribution model. The Company does not estimate forfeiture rates but rather adjusts for forfeitures in the periods in which they occur. For RSUs and PSUs, the Company provides dividend equivalents for any dividends that are paid out during the period in between grant date and the date the shares are delivered upon vesting. For the six months ended June 30, 2023, total stock-based compensation expenses recorded was $5.5 million. For the six months ended June 30, 2023 for the RSU and PSU awards, there were no performance adjustments for actual performance achieved relative to the maximum and no vested shares. The fair value of the RSU and PSU awards forfeited during the six months ended June 30, 2023 was $0.4 million. For the six months ended June 30, 2023 for the RSAs, the fair value of vested shares was $1.7 million, and there were no forfeited shares. At June 30, 2023, aggregate unrecognized compensation cost for all unvested equity awards was $34.0 million (assuming maximum levels of performance are achieved), which is expected to be recognized over a weighted-average period of 1.3 years. Earnings Per Share Rithm Capital is required to present both basic and diluted earnings per share (“EPS”). Basic EPS is calculated by dividing net income by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing net income by the weighted average number of shares of common stock outstanding plus the additional dilutive effect, if any, of common stock equivalents during each period. The following table summarizes the basic and diluted earnings per share calculations:
(A)Stock options and common stock purchase warrants that could potentially dilute basic earnings per share in the future were not included in the computation of diluted earnings per share for the periods where a loss has been recorded because they would have been anti-dilutive for the period presented. There were no anti-dilutive stock options or common stock purchase warrants for all periods presented. (B)RSU and PSU awards were included to the extent dilutive and issuable under the relevant performance measures.
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COMMITMENTS AND CONTINGENCIES |
6 Months Ended |
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Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation — Rithm Capital is or may become, from time to time, involved in various disputes, litigation and regulatory inquiry and investigation matters that arise in the ordinary course of business. Given the inherent unpredictability of these types of proceedings, it is possible that future adverse outcomes could have a material adverse effect on its business, financial position or results of operations. Rithm Capital is not aware of any unasserted claims that it believes are material and probable of assertion where the risk of loss is expected to be reasonably possible. Rithm Capital is, from time to time, subject to inquiries by government entities. Rithm Capital currently does not believe any of these inquiries would result in a material adverse effect on Rithm Capital’s business. Indemnifications — In the normal course of business, Rithm Capital and its subsidiaries enter into contracts that contain a variety of representations and warranties and that provide general indemnifications. Rithm Capital’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against Rithm Capital that have not yet occurred. However, based on its experience, Rithm Capital expects the risk of material loss to be remote. Capital Commitments — As of June 30, 2023, Rithm Capital had outstanding capital commitments related to investments in the following investment types (also refer to Note 5 for MSR investment commitments and to Note 24 for additional capital commitments entered into subsequent to June 30, 2023, if any): •MSRs and Servicer Advance Investments — Rithm Capital and, in some cases, third-party co-investors agreed to purchase future servicer advances related to certain Non-Agency residential mortgage loans. In addition, Rithm Capital’s subsidiaries, NRM and the Mortgage Company, are generally obligated to fund future servicer advances related to the loans they are obligated to service. The actual amount of future advances purchased will be based on (i) the credit and prepayment performance of the underlying loans, (ii) the amount of advances recoverable prior to liquidation of the related collateral and (iii) the percentage of the loans with respect to which no additional advance obligations are made. The actual amount of future advances is subject to significant uncertainty. Notes 5 and 6 for discussion on Rithm Capital’s MSRs and servicer advance investments, respectively. •Mortgage Origination Reserves — The Mortgage Company currently originates, or has in the past originated, conventional, government-insured and nonconforming residential mortgage loans for sale and securitization. The GSEs or Ginnie Mae guarantee conventional and government insured mortgage securitizations and mortgage investors issue nonconforming private label mortgage securitizations while the Mortgage Company generally retains the right to service the underlying residential mortgage loans. In connection with the transfer of loans to the GSEs or mortgage investors, the Mortgage Company makes representations and warranties regarding certain attributes of the loans and, subsequent to the sale, if it is determined that a sold loan is in breach of these representations and warranties, the Mortgage Company generally has an obligation to cure the breach. If the Mortgage Company is unable to cure the breach, the purchaser may require the Mortgage Company, as applicable, to repurchase the loan. In addition, as issuers of Ginnie Mae guaranteed securitizations, the Mortgage Company holds the right to repurchase loans that are at least 90 days’ delinquent from the securitizations at their discretion. Loans in forbearance that are three or more consecutive payments delinquent are included as delinquent loans permitted to be repurchased. While the Mortgage Company is not obligated to repurchase the delinquent loans, the Mortgage Company generally exercises its respective option to repurchase loans that will result in an economic benefit. As of June 30, 2023, Rithm Capital’s estimated liability associated with representations and warranties and Ginnie Mae repurchases was $55.4 million and $1.3 billion, respectively. See Note 5 for information on regarding the right to repurchase delinquent loans from Ginnie Mae securities and mortgage origination. •Residential Mortgage Loans — As part of its investment in residential mortgage loans, Rithm Capital may be required to outlay capital. These capital outflows primarily consist of advance escrow and tax payments, residential maintenance and property disposition fees. The actual amount of these outflows is subject to significant uncertainty. See Note 8 for information regarding Rithm Capital’s residential mortgage loans. •Consumer Loans — The Consumer Loan Companies have invested in loans with an aggregate of $195.7 million of unfunded and available revolving credit privileges as of June 30, 2023. However, under the terms of these loans, requests for draws may be denied and unfunded availability may be terminated at Rithm Capital’s discretion. •Single-Family Rental Properties — Crowne Property Acquisitions, LLC, a wholly owned subsidiary of Rithm Capital, executed purchase and sale agreements with Lennar Homes of Texas Land and Construction, LTD., a subsidiary of Lennar Corporation, to purchase 371 SFR properties, which shall be delivered in phased takedowns, at an estimated aggregate purchase price of $95.6 million, which is payable subject to the phased takedown schedule. The purchased homes are currently under construction, and all of the homes are expected to be delivered by the end of the first quarter of 2024. •Mortgage Loans Receivable — Genesis had commitments to fund up to $579.5 million of additional advances on existing mortgage loans as of June 30, 2023. These commitments are generally subject to loan agreements with covenants regarding the financial performance of the customer and other terms regarding advances that must be met before Genesis funds the commitment. Non-Recourse Carve-Out, Construction Completion and Carry Guarantees – In connection with an investment in a commercial real estate development project, Rithm Capital provided certain limited guarantees to the senior lender on the project related to non-recourse carve outs, completion and carry costs of the project. The actual amount that could be called under the guarantees is subject to significant uncertainty. Environmental Costs — As an investor in and owner of commercial and residential real estate, Rithm Capital is subject to potential environmental costs. At June 30, 2023, Rithm Capital is not aware of any environmental concerns that would have a material adverse effect on its consolidated financial position or results of operations. Debt Covenants — Certain of the Company’s debt obligations are subject to loan covenants and event of default provisions, including event of default provisions triggered by certain specified declines in Rithm Capital’s equity or a failure to maintain a specified tangible net worth, liquidity or indebtedness to tangible net worth ratio. Refer to Note 18.
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Income tax expense (benefit) consists of the following:
Rithm Capital intends to qualify as a REIT for each of its tax years through December 31, 2023. A REIT is generally not subject to U.S. federal corporate income tax on that portion of its income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. Rithm Capital operates various business segments, including servicing, origination and MSR related investments, through taxable REIT subsidiaries (“TRSs”) that are subject to regular corporate income taxes, which have been provided for in the provision for income taxes, as applicable. Refer to Note 3 for further details. As of June 30, 2023, Rithm Capital recorded a net deferred tax liability of $751.5 million, primarily composed of deferred tax liabilities generated through the deferral of gains from residential mortgage loans sold by the origination business and changes in fair value of MSRs, loans and swaps held within taxable entities.
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SUBSEQUENT EVENTS |
6 Months Ended |
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Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS These financial statements include a discussion of material events that have occurred subsequent to June 30, 2023 through the issuance of these Consolidated Financial Statements. Events subsequent to that date have not been considered in these financial statements. On July 23, 2023, Rithm Capital and certain of its affiliates entered into an Agreement and Plan of Merger (including the schedules and exhibits thereto, the “Merger Agreement) with Sculptor Capital Management, Inc. (“Sculptor”) and certain of its affiliates. Pursuant to the Merger Agreement, Rithm Capital will acquire Sculptor in a transaction valued at approximately $639 million, which includes $11.15 per Class A common share of Sculptor (including related transactions under the Merger Agreement, the “Sculptor Acquisition”).
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BASIS OF PRESENTATION (Policies) |
6 Months Ended |
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Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Income Taxes | Rithm Capital has elected and intends to qualify to be taxed as a REIT for U.S. federal income tax purposes. As such, Rithm Capital will generally not be subject to U.S. federal corporate income tax on that portion of its net income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. See Note 23, Income Taxes, for additional information regarding Rithm Capital’s taxable REIT subsidiaries. |
Segment Reporting | As of June 30, 2023, Rithm Capital conducted its business through the following segments: (i) Origination, (ii) Servicing, (iii) MSR Related Investments, (iv) Residential Securities, Properties and Loans, (v) Consumer Loans, (vi) Mortgage Loans Receivable and (vii) Corporate. |
Interim Financial Statements | Interim Financial Statements — The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP” or “U.S. GAAP”). In the opinion of management, all adjustments considered necessary for a fair presentation of Rithm Capital’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The Consolidated Financial Statements include the accounts of Rithm Capital and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. Rithm Capital consolidates those entities in which it has control over significant operating, financing and investing decisions of the entity, as well as those entities deemed to be VIEs in which Rithm Capital is determined to be the primary beneficiary. For entities over which Rithm Capital exercises significant influence, but which do not meet the requirements for consolidation, Rithm Capital uses the equity method of accounting whereby it records its share of the underlying income of such entities. Distributions from equity method investees are classified in the Consolidated Statements of Cash Flows based on the cumulative earnings approach, where all distributions up to cumulative earnings are classified as distributions of earnings. |
Reclassifications | Reclassifications — Certain prior period amounts in Rithm Capital’s Consolidated Financial Statements and respective notes have been reclassified to be consistent with the current period presentation. Such reclassifications had no impact on net income, total assets, total liabilities or stockholders’ equity. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets — The Company reviews long-lived assets for impairment when events or changes in circumstances indicate the carrying value of these assets may exceed their current fair values. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment charges were recognized on long-lived assets for the three months and six months ended June 30, 2023. In the future, if events or market conditions affect the estimated fair value to the extent that a long-lived asset is impaired, the Company will adjust the carrying value of these long-lived assets in the period in which the impairment occurs. |
Risks and Uncertainties | Risks and Uncertainties — In the normal course of business, Rithm Capital encounters primarily two significant types of economic risk: credit risk and market risk. Credit risk is the risk of default on Rithm Capital’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of investments due to changes in prepayment rates, interest rates, spreads or other market factors, including risks that impact the value of the collateral underlying Rithm Capital’s investments. Taking into consideration these risks along with estimated prepayments, financings, collateral values, payment histories and other information, Rithm Capital believes that the carrying values of its investments are reasonable. Furthermore, for each of the periods presented, a significant portion of Rithm Capital’s assets are dependent on its servicers’ and subservicers’ ability to perform their obligations servicing the residential mortgage loans underlying Rithm Capital’s Excess MSRs, MSRs, MSR financing receivables, servicer advance investments, Non-Agency RMBS and loans. If a servicer is terminated, Rithm Capital’s right to receive its portion of the cash flows related to interests in servicing related assets may also be terminated. The mortgage and financial sectors operate in a challenging and uncertain economic environment. Financial and real estate companies continue to be affected by, among other things, market volatility, rapidly rising interest rates and inflationary pressures. Should macroeconomic conditions continue to worsen, there is no assurance that such conditions will not result in an overall decline in the fair value of many assets, including those in which the Company invests, and potential impairment of the carrying value of goodwill or other intangible assets. The ultimate duration and impact of the current economic environment remain uncertain. Rithm Capital is subject to significant tax risks. If Rithm Capital were to fail to qualify as a REIT in any taxable year, Rithm Capital would be subject to U.S. federal corporate income tax (including any applicable alternative minimum tax), which could be material. Unless entitled to relief under certain statutory provisions, Rithm Capital would also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification is lost.
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Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements — In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The standard was issued to ease the accounting effects of reform to the London Interbank Offered Rate (“LIBOR”) and other reference rates. The standard provides optional expedients and exceptions for applying GAAP to debt, derivatives and other contracts affected by reference rate reform. The standard was effective for all entities as of March 12, 2020 through December 31, 2022 and was able to be elected over time as reference rate reform activities occur. Additionally, in December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. The standard defers the expiration date of ASC 848 from December 31, 2022 to December 31, 2024. ASU 2022-06 became effective upon issuance. As of June 30, 2023, the Company has transitioned from LIBOR to an alternative benchmark. The Company's financing arrangements have provisions in place that provide for an alternative to LIBOR. In addition, the Company has amended terms of certain financing arrangements, where necessary, to transition or direct the transition to an alternative benchmark. The Company does not currently intend to amend the 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series A”), the 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series B”), or the 6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series C”) to change the existing USD-LIBOR cessation fallback language. In March 2022, the FASB issued ASU 2022-01, Derivative and Hedging (Topic 815): Fair Value Hedging–Portfolio Layer Method. The standard clarifies the accounting and promotes consistency in reporting for hedges where the portfolio layer method is applied. The new standard is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company’s adoption of the new standard did not have a material effect on its Consolidated Financial Statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The standard clarifies that a contractual restriction on the sale of an equity security is not considered in measuring the security’s fair value. The standard also requires certain disclosures for equity securities that are subject to contractual restrictions. The new standard is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company does not expect the adoption of the new standard to have a material effect on its Consolidated Financial Statements.
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SEGMENT REPORTING (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Financial Data | The following tables summarize segment financial information, which in total reconciles to the same data for Rithm Capital as a whole:
(A)Includes elimination of intercompany transactions of $2.5 million primarily related to loan sales. Servicing Segment Revenues The table below summarizes the components of servicing segment revenues:
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EXCESS MORTGAGE SERVICING RIGHTS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Transfers and Servicing [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Activity Related to the Carrying Value of Investments in Excess MSRs | The table below summarizes the components of Excess MSRs:
The following table presents activity related to the carrying value of direct investments in Excess MSRs:
(A)Underlying loans serviced by Mr. Cooper Group Inc. (“Mr. Cooper”) and Specialized Loan Servicing LLC (“SLS”). The following table summarizes activity related to MSRs and MSR financing receivables:
(A)Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection. (B)Represents MSRs retained on the sale of originated residential mortgage loans. (C)Relates primarily to excess servicing cash flows sold on certain agency loans with a total UPB of approximately $56.7 billion during the three months ended June 30, 2023. In connection with these sales, the Company recorded a gain of approximately $4.1 million during the period, which is included within change in fair value of MSRs and MSR financing receivables in the Consolidated Statements of Operations. (D)Based on the paydown of the underlying residential mortgage loans. The following table summarizes MSRs and MSR financing receivables by type as of June 30, 2023:
(A)Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B)Carrying value represents fair value. As of June 30, 2023, weighted average discount rates of 8.5% (range of 7.8% – 10.8%) were used to value Rithm Capital’s MSRs and MSR financing receivables. (C)As of June 30, 2023, Rithm Capital holds approximately $1.3 billion in residential mortgage loans subject to repurchase and the related residential mortgage loans repurchase liability on its Consolidated Balance Sheets.
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Summary of Direct Investments in Excess MSRs | The following table summarizes direct investments in Excess MSRs:
(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 is also invested in related servicer advance investments, including the basic fee component of the related MSR as of June 30, 2023 (Note 6) on $16.2 billion UPB underlying these Excess MSRs. Changes in fair value of investments consists of the following:
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Summary of the Financial Results of Excess MSR Joint Ventures, Accounted for as Equity Method Investees | The following tables summarize the financial results of the Excess MSR joint ventures, accounted for as equity method investees:
The following table summarizes the activity of investments in equity method investees:
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Summary of Excess MSR Investments Made through Equity Method Investees | The following is a summary of Excess MSR investments made through equity method investees:
(A)The remaining interests are held by Mr. Cooper. (B)Represents the amortized cost basis of the equity method investees in which Rithm Capital holds a 50% interest. (C)Represents the carrying value of the Excess MSRs held in equity method investees, in which Rithm Capital holds a 50% interest. Carrying value represents the fair value of the pools, as applicable. (D)Represents the weighted average expected timing of the receipt of cash flows of each investment.
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MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Transfers and Servicing of Financial Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Activity Related to the Carrying Value of Investments in Excess MSRs | The table below summarizes the components of Excess MSRs:
The following table presents activity related to the carrying value of direct investments in Excess MSRs:
(A)Underlying loans serviced by Mr. Cooper Group Inc. (“Mr. Cooper”) and Specialized Loan Servicing LLC (“SLS”). The following table summarizes activity related to MSRs and MSR financing receivables:
(A)Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection. (B)Represents MSRs retained on the sale of originated residential mortgage loans. (C)Relates primarily to excess servicing cash flows sold on certain agency loans with a total UPB of approximately $56.7 billion during the three months ended June 30, 2023. In connection with these sales, the Company recorded a gain of approximately $4.1 million during the period, which is included within change in fair value of MSRs and MSR financing receivables in the Consolidated Statements of Operations. (D)Based on the paydown of the underlying residential mortgage loans. The following table summarizes MSRs and MSR financing receivables by type as of June 30, 2023:
(A)Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B)Carrying value represents fair value. As of June 30, 2023, weighted average discount rates of 8.5% (range of 7.8% – 10.8%) were used to value Rithm Capital’s MSRs and MSR financing receivables. (C)As of June 30, 2023, Rithm Capital holds approximately $1.3 billion in residential mortgage loans subject to repurchase and the related residential mortgage loans repurchase liability on its Consolidated Balance Sheets.
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Summary of Fees Earned in Exchange for Servicing Financial Assets | The following table summarizes components of Servicing Revenue, Net:
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Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans of the Direct Investment in MSRs | The table below summarizes the geographic distribution of the underlying residential mortgage loans of the MSRs and MSR financing receivables:
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Summary of Investments in Servicer Advances | The table below summarizes the type of advances included in the servicer advances receivable:
(A)Includes $447.6 million and $526.5 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B)Includes $221.2 million and $261.8 million of servicer advances receivable related to Ginnie Mae MSRs, respectively, recoverable from either the borrower or Ginnie Mae. Expected losses for advances associated with Ginnie Mae loans in the MSR portfolio are considered in the MSR fair valuation through a non-reimbursable advance loss assumption. (C)Excludes $51.7 million and $19.5 million, respectively, in unamortized advance discount and reserves, net of accruals for advance recoveries. These reserves relate to inactive loans in the foreclosure or liquidation process. The following table summarizes servicer advance investments, including the right to the basic fee component of the related MSRs:
(A)Represents the fair value of the servicer advance investments, including the basic fee component of the related MSRs. (B)Represents the weighted average expected timing of the receipt of expected net cash flows for this investment. The following table provides additional information regarding the servicer advance investments and related financing:
(A)Based on outstanding servicer advances, excluding purchased but unsettled servicer advances. (B)Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve. (C)Annualized measure of the cost associated with borrowings. Gross cost of funds primarily includes interest expense and facility fees. Net cost of funds excludes facility fees. (D)The following table summarizes the types of advances included in servicer advance investments:
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Summary of Servicer Advances Reserve | The following table summarizes servicer advances reserve:
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SERVICER ADVANCE INVESTMENTS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, All Other Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Investments in Servicer Advances | The table below summarizes the type of advances included in the servicer advances receivable:
(A)Includes $447.6 million and $526.5 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B)Includes $221.2 million and $261.8 million of servicer advances receivable related to Ginnie Mae MSRs, respectively, recoverable from either the borrower or Ginnie Mae. Expected losses for advances associated with Ginnie Mae loans in the MSR portfolio are considered in the MSR fair valuation through a non-reimbursable advance loss assumption. (C)Excludes $51.7 million and $19.5 million, respectively, in unamortized advance discount and reserves, net of accruals for advance recoveries. These reserves relate to inactive loans in the foreclosure or liquidation process. The following table summarizes servicer advance investments, including the right to the basic fee component of the related MSRs:
(A)Represents the fair value of the servicer advance investments, including the basic fee component of the related MSRs. (B)Represents the weighted average expected timing of the receipt of expected net cash flows for this investment. The following table provides additional information regarding the servicer advance investments and related financing:
(A)Based on outstanding servicer advances, excluding purchased but unsettled servicer advances. (B)Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve. (C)Annualized measure of the cost associated with borrowings. Gross cost of funds primarily includes interest expense and facility fees. Net cost of funds excludes facility fees. (D)The following table summarizes the types of advances included in servicer advance investments:
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REAL ESTATE AND OTHER SECURITIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Debt Securities, Available-for-Sale | The following table summarizes Real Estate and Other Securities for Available for Sale and RMBS Measured at Fair Value securities by designation:
(A)Fair value is equal to the carrying value for all securities. See Note 19 regarding the fair value measurements. (B)Excludes residual bonds and certain other Non-Agency bonds, with a carrying value of $17.9 million and $1.1 million, respectively, for which no coupon payment is expected. (C)Based on the timing of expected principal reduction on the assets. (D)Percentage of the amortized cost basis of securities that is subordinate to Rithm Capital’s investments, excluding fair value option securities. (E)The total outstanding face amount was $7.9 billion for fixed rate securities as of June 30, 2023. (F)The total outstanding face amount was $8.0 billion (including $7.2 billion of residual and fair value option notional amount) for fixed rate securities and $9.5 billion (including $9.2 billion of residual and fair value option notional amount) for floating rate securities as of June 30, 2023. (G)Includes other asset-backed securities consisting primarily of (i) interest-only securities, servicing strips and commercial mortgage backed securities (fair value option securities) which Rithm Capital elected to carry at fair value and record changes to valuation through earnings, (ii) bonds backed by consumer loans and (iii) corporate debt.
The following table summarizes purchases and sales of Real Estate and Other Securities:
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Summary of Debt Securities, Held-to-Maturity | The following table summarizes Real Estate and Other Securities for Held to Maturity securities:
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Summary of Real Estate Securities in an Unrealized Loss Position | The following table summarizes certain information for RMBS designated as AFS in an unrealized loss position as of June 30, 2023:
(A)Represents credit impairment on securities in an unrealized loss position as of June 30, 2023. Rithm Capital performed an assessment of all RMBS designated as AFS that are in an unrealized loss position (an unrealized loss position exists when a security’s amortized cost basis, excluding the effect of credit impairment, exceeds its fair value) and determined the following:
(A)Required to be recorded through earnings. In measuring the portion of credit losses, Rithm Capital estimates the expected cash flow for each of the securities. This evaluation included a review of the credit status and the performance of the collateral supporting those securities, including the credit of the issuer, key terms of the securities and the effect of local, industry and broader economic trends. Significant inputs in estimating the cash flows included Rithm Capital’s expectations of prepayment rates, default rates and loss severities. Credit losses were measured as the decline in the present value of the expected future cash flows discounted at the security’s effective interest rate. (B)Represents unrealized losses on securities that are due to non-credit factors. (C)Rithm Capital may, at times, be more likely than not to be required to sell certain securities for liquidity purposes. While the amount of the securities to be sold may be an estimate, and the securities to be sold have not yet been identified, Rithm Capital must make its best estimate, which is subject to significant judgment regarding future events, and may differ materially from actual future sales.
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Summary of Debt Securities, Available-for-Sale, Allowance for Credit Loss | The following table summarizes the activity related to the allowance for credit losses on RMBS designated as Available-for-Sale (“AFS”) (excluding credit impairment relating to securities Rithm Capital intends to sell or is more likely than not required to sell):
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Summary of the Outstanding Face Amount and Carrying Value for Securities Uncollectible | The following is the outstanding face amount and carrying value for securities, for which, as of the acquisition date, it was probable that Rithm Capital would be unable to collect all contractually required payments, excluding residual and fair value option securities:
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Summary of Changes in Accretable Yield for Securities | The following is a summary of the changes in accretable yield for these securities:
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RESIDENTIAL MORTGAGE LOANS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO | The following table summarizes residential mortgage loans outstanding by loan type:
(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)Performing loans are generally placed on nonaccrual status when principal or interest is 90 days or more past due. (C)As of June 30, 2023, Rithm Capital has placed non-performing loans, held-for-sale on nonaccrual status, except as described in (D) below. (D)Includes $311.6 million and $210.9 million UPB of Ginnie Mae Early Buyout Options (“EBOs”) 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 June 30, 2023:
(A)Mortgage loans receivable are carried at fair value. See Note 19 regarding fair value measurements. (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:
Notes and Loans Receivable — The following table summarizes the activity for notes and loans receivable:
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Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans | The following table summarizes the geographic distribution of the underlying residential mortgage loans:
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Summary of Performing Loans Past Due | The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate carrying value of loans:
The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of Mortgage Loans Receivable:
The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of notes and loans receivable:
(A)Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements.
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Summary of Loans Held For Sale, Fair Value | The following table summarizes the activity for residential mortgage loans:
(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).
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Summary of Net Interest Income | The following table summarizes the net interest income for residential mortgage loans:
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Summary of Originated Mortgage Loans | The following table summarizes the components of Gain on Originated Residential Mortgage Loans, Held-for-Sale, Net:
(A)Includes residential mortgage loan origination fees of $94.0 million and $116.8 million for the three months ended June 30, 2023 and 2022, respectively. Includes residential mortgage loan origination fees of $162.9 million and $369.3 million for the six months ended June 30, 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.
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CONSUMER LOANS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments In Consumer Loans Equity Method Investees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Investment in Consumer Loan Companies | The following table summarizes characteristics of the consumer loan portfolio, inclusive of the SpringCastle and Marcus consumer loans:
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Summary of Consumer Loans, Held-For-Investment | The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of consumer loans:
(A)Consumer loans are carried at fair value. See Note 19 regarding fair value measurements.
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Summary of Carrying Value of Performing Consumer Loans | The following table summarizes activities related to the carrying value of consumer loans:
(A)Represents draws on consumer loans with revolving privileges.
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SINGLE-FAMILY RENTAL PROPERTIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Single-Family Rental Properties | The following table summarizes the net carrying value of investments in SFR properties:
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Schedule of Activity in Single-Family Rental Properties | The following table summarizes the activity related to the net carrying value of investments in SFR properties:
The following table summarizes the activity of the SFR portfolio by units:
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Schedule of Future Minimum Rental Revenues | The following table summarizes our future minimum rental revenues under existing leases on SFR properties:
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MORTGAGE LOANS RECEIVABLE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO | The following table summarizes residential mortgage loans outstanding by loan type:
(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)Performing loans are generally placed on nonaccrual status when principal or interest is 90 days or more past due. (C)As of June 30, 2023, Rithm Capital has placed non-performing loans, held-for-sale on nonaccrual status, except as described in (D) below. (D)Includes $311.6 million and $210.9 million UPB of Ginnie Mae Early Buyout Options (“EBOs”) 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 June 30, 2023:
(A)Mortgage loans receivable are carried at fair value. See Note 19 regarding fair value measurements. (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:
Notes and Loans Receivable — The following table summarizes the activity for notes and loans receivable:
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Summary of Performing Loans Past Due | The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate carrying value of loans:
The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of Mortgage Loans Receivable:
The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of notes and loans receivable:
(A)Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements.
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Summary of Geographic Distribution of Mortgage Loans Receivable | The following table summarizes the geographic distribution of the underlying Mortgage Loans Receivable as of June 30, 2023:
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CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on Rithm Capital’s Consolidated Balance Sheets to the total of the same such amounts shown in the Consolidated Statements of Cash Flows:
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Summary of Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on Rithm Capital’s Consolidated Balance Sheets to the total of the same such amounts shown in the Consolidated Statements of Cash Flows:
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OTHER ASSETS AND LIABILITIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income Assets And Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets and Liabilities | Other Assets and Accrued Expenses and Other Liabilities consist of the following:
(A)Represents collateral posted as a result of changes in fair value of Rithm Capital’s (i) real estate securities securing its secured financing agreements and (ii) derivative instruments. (B)Represents equity investments in (i) commercial redevelopment projects and (ii) operating companies providing services throughout the real estate industry, including investments in Covius Holding Inc. (“Covius”), a provider of various technology-enabled services to the mortgage and real estate sectors, preferred stock in Valon Mortgage, Inc. (“Valon”), a residential mortgage servicing and technology company, and preferred stock in Credijusto Ltd. (“Covalto”), a financial services company. (C)Includes goodwill derived from the acquisition of Shellpoint Partners LLC (“Shellpoint”), Guardian Asset Management LLC (“Guardian”) and Genesis. (D)Represents loans made pursuant to a senior credit agreement and a senior subordinated credit agreement to an entity affiliated with funds managed by an affiliate of the Former Manager. The loans are accounted for under the fair value option. (E)Represents note receivable acquired pursuant to a loan sale agreement, secured by certain commercial properties. The note is accounted for under the fair value option.
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Schedule of Real Estate Owned | The following table presents activity related to the carrying value of investments in REO:
(A)Recognized when control of the property has transferred to the buyer.
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Summary of Accounts, Notes and Loans Receivable | The following table summarizes residential mortgage loans outstanding by loan type:
(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)Performing loans are generally placed on nonaccrual status when principal or interest is 90 days or more past due. (C)As of June 30, 2023, Rithm Capital has placed non-performing loans, held-for-sale on nonaccrual status, except as described in (D) below. (D)Includes $311.6 million and $210.9 million UPB of Ginnie Mae Early Buyout Options (“EBOs”) 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 June 30, 2023:
(A)Mortgage loans receivable are carried at fair value. See Note 19 regarding fair value measurements. (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:
Notes and Loans Receivable — The following table summarizes the activity for notes and loans receivable:
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Summary of Performing Loans Past Due | The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate carrying value of loans:
The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of Mortgage Loans Receivable:
The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of notes and loans receivable:
(A)Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements.
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EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND OTHER (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of General and Administrative Expenses | General and Administrative expenses consist of the following:
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Schedule of Components of Other Income (Loss) | The following table summarizes the components of Other income (loss):
(A)Includes excess MSRs, servicer advance investments, consumer loans and other.
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table summarizes the carrying value of goodwill by reportable segment:
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Schedule of Acquired Intangible Assets | The following table summarizes the acquired identifiable intangible assets:
(A)Includes indefinite-lived intangible assets of $21.4 million and $21.4 million, respectively. (B)Includes indefinite-lived intangible assets of $1.9 million and $1.9 million, respectively.
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table summarizes the expected future amortization expense for acquired intangible assets as of June 30, 2023:
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OPERATING LEASES (Tables) |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Commitments for Non-Cancelable Leases | The table below summarizes the future commitments under the non-cancelable leases:
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Schedule of Other Information Related to Operating Leases | Other information related to operating leases is summarized below:
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DERIVATIVES (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivatives | Derivatives are recorded at fair value on the Consolidated Balance Sheets as follows:
(A)Net of $1.0 billion and $1.2 billion of related variation margin balances as of June 30, 2023 and December 31, 2022, respectively. The following table summarizes notional amounts related to derivatives:
(A)Includes $18.8 billion notional of receive LIBOR or Secured Overnight Financing Rate (“SOFR”)/pay fixed of 2.2% and $2.4 billion notional of receive fixed of 3.4%/pay LIBOR or SOFR with weighted average maturities of 31 months and 43 months, respectively, as of June 30, 2023. Includes $23.1 billion notional of receive LIBOR or SOFR/pay fixed of 1.9% and $0.0 billion notional of receive fixed of 0.0%/pay LIBOR or SOFR with weighted average maturities of 35 months and 0 months, respectively, as of December 31, 2022. (B)Represents the notional amount of Agency RMBS, classified as derivatives. The following table summarizes gain (loss) on derivatives and the related location on the Consolidated Statements of Operations:
(A)Represents unrealized gain (loss). (B)Excludes no loss for the three months ended June 30, 2023 and 2022 included within Servicing Revenue, Net (Note 5). Excludes no loss and $76.8 million loss for the six months ended June 30, 2023 and 2022, respectively, included within Servicing Revenue, Net. (C)Excludes $11.5 million loss and $526.9 million gain for the three months ended June 30, 2023 and 2022, respectively, and $1.6 million loss and $1.1 billion gain for the six months ended June 30, 2023 and 2022, respectively, included within Gain on Originated Residential Mortgage Loans, Held-for-Sale, Net (Note 8).
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DEBT OBLIGATIONS (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt Obligations | The following table summarizes Secured Financing Agreements and Secured Notes and Bonds Payable debt obligations:
(A)Net of deferred financing costs. (B)All debt obligations with a stated maturity through the date of issuance were refinanced, extended or repaid. (C)Includes approximately $116.9 million of associated accrued interest payable as of June 30, 2023. (D)Includes $972.3 million face amount of repurchase agreements collateralized by U.S. Treasury Bills. All repurchase agreements have a fixed rate. (E)All LIBOR or SOFR-based floating interest rates. (F)Includes $255.4 million which bear interest at an average fixed rate of 5.1% with the remaining having LIBOR or SOFR-based floating interest rates. (G)Includes $202.7 million of corporate loans which bear interest at a fixed rate of 3.7%. (H)Includes $2.8 billion of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month SOFR, and (ii) a margin ranging from 2.5% to 3.3%; and $1.6 billion of capital market notes with fixed interest rates ranging 3.0% to 5.4%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the MSRs and MSR financing receivables securing these notes. (I)$1.2 billion face amount of the notes have a fixed rate of 1.6% while the remaining notes bear interest equal to the sum of (i) a floating rate index equal to one-month SOFR, and (ii) a margin ranging from 1.5% to 3.3%. Collateral includes servicer advance investments, as well as servicer advances receivable related to the MSRs and MSR financing receivables owned by NRM and the Mortgage Company. (J)Represents $650.0 million securitization backed by a revolving warehouse facility to finance newly originated first-lien, fixed- and adjustable-rate residential mortgage loans which bears interest equal to one-month LIBOR plus 1.2%. Collateral carrying value includes cash held in the securitization trust required to meet collateral requirements. (K)Includes (i) SpringCastle debt, which is primarily composed of the following classes of asset-backed notes held by third parties: $238.2 million UPB of Class A notes with a coupon of 2.0% and $53.0 million UPB of Class B notes with a coupon of 2.7% and (ii) $1.2 billion of debt collateralized by the Marcus loans bearing interest at the sum of one-month SOFR plus a margin of 3.0%. The following table summarizes activities related to the carrying value of debt obligations:
(A)Rithm Capital net settles daily borrowings and repayments of the Secured Notes and Bonds Payable on its servicer advances.
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Schedule of Contractual Maturities of Debt Obligations | Contractual maturities of debt obligations as of June 30, 2023 are as follows:
(A)Includes secured notes and bonds payable of $5.4 billion. (B)Includes secured financing agreements and secured notes and bonds payable of $12.8 billion and $5.6 billion, respectively. Secured financing agreements with contractual maturities prior to December 31, 2023 includes $8.6 billion collateralized by Agency RMBS or U.S. Treasury Bills.
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Schedule of Borrowing Capacity | The following table represents borrowing capacity as of June 30, 2023:
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Schedule of Debt Redemption | The 2025 Senior Notes mature on October 15, 2025 and the Company may redeem some or all of the 2025 Senior Notes at the Company’s option, at any time from time to time, on or after October 15, 2022 at a price equal to the following fixed redemption prices (expressed as a percentage of principal amount of the 2025 Senior Notes to be redeemed):
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FAIR VALUE MEASUREMENTS (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Values and Fair Values of Financial Assets Recorded at Fair Value on a Recurring Basis | The carrying values and fair values of assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of June 30, 2023 were as follows:
(A)The notional amount represents the total unpaid principal balance of the residential mortgage loans underlying the MSRs, MSR financing receivables and Excess MSRs. Rithm Capital does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios. (B)Includes U.S. Treasury Bills classified as Level 1 and held at amortized cost basis of $979.0 million (see Note 7). (C)Includes Rithm Capital’s economic interests in the VIEs consolidated and accounted for under the collateralized financing entity (“CFE”) election. As of June 30, 2023, the fair value of Rithm Capital’s interests in the mortgage loans receivable securitization was $45.6 million. (D)Excludes the indirect equity investment in a commercial redevelopment project accounted for at fair value on a recurring basis based on NAV of Rithm Capital’s investment. The investment had a fair value of $0 as of June 30, 2023. (E)Includes SCFT 2020-A and 2022-RTL1 mortgage-backed securities issued for which the fair value option for financial instruments was elected and resulted in a fair value of $574.1 million as of June 30, 2023.
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Schedule of Financial Assets Measured at Fair Value on a Recurring Basis Using Level 3 Inputs | The following table summarizes assets measured at fair value on a recurring basis using Level 3 inputs:
(A)Includes the recapture agreement for each respective pool, as applicable. (B)Amounts include Rithm Capital’s portion of the Excess MSRs held by the respective joint ventures in which Rithm Capital has a 50% interest. (C)For the purpose of this table, the IRLC asset and liability positions are shown net. (D)Gain (loss) recorded in earnings during the period is attributable to the change in unrealized gain (loss) relating to Level 3 assets still held at the reporting dates and realized gain (loss) recorded during the period. (E)See Note 5 for further details on the components of Servicing Revenue, Net. (F)Gain (loss) included in Unrealized Gain (Loss) on Available-for-Sale Securities, Net in the Consolidated Statements of Comprehensive Income. (G)Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection.
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Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis Using Level 3 Inputs | Liabilities measured at fair value on a recurring basis using Level 3 inputs changed as follows:
(A)Gain (loss) recorded in earnings during the period is attributable to the change in unrealized gain (loss) relating to Level 3 liabilities still held at the reporting dates and realized gain (loss) recorded during the period.
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Summary of Measurement Inputs and Valuation Techniques | The following table summarizes certain information regarding the ranges and weighted averages of inputs used as of June 30, 2023:
(A)Weighted by fair value of the portfolio. (B)Projected annualized weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (C)Projected percentage of residential mortgage loans in the pool for which the borrower will miss a mortgage payments. (D)Percentage of voluntarily prepaid loans that are expected to be refinanced by the related servicer or subservicer, as applicable. (E)Weighted average total mortgage servicing amount, in excess of the basic fee as applicable, measured in basis points (“bps”). A weighted average cost of subservicing of $6.85 – $7.01 ($6.93) per loan per month was used to value the agency MSRs. A weighted average cost of subservicing of $7.32 – $9.62 ($9.15) per loan per month was used to value the Non-Agency MSRs, including MSR financing receivables. A weighted average cost of subservicing of $8.30 per loan per month was used to value the Ginnie Mae MSRs. (F)Weighted average maturity of the underlying residential mortgage loans in the pool. (G)For certain pools, recapture rate represents the expected recapture rate with the successor subservicer appointed by NRM. (H)Recapture is not considered a significant input for MSRs and MSR financing receivables. As of June 30, 2023, real estate securities valuation methodology and results are detailed below. Treasury securities are valued using market-based prices published by the U.S. Department of the Treasury and classified as Level 1.
(A)Rithm Capital generally obtained pricing service quotations or broker quotations from two sources, one of which was generally the seller (the party that sold Rithm Capital the security) for Non-Agency RMBS. Rithm Capital evaluates quotes received, determines one as being most representative of fair value and does not use an average of the quotes. Even if Rithm Capital receives two or more quotes on a particular security that come from non-selling brokers or pricing services, it does not use an average because it believes using an actual quote more closely represents a transactable price for the security than an average level. Furthermore, in some cases, for Non-Agency RMBS, there is a wide disparity between the quotes Rithm Capital receives. Rithm Capital believes using an average of the quotes in these cases would not represent the fair value of the asset. Based on Rithm Capital’s own fair value analysis, it selects one of the quotes which is believed to more accurately reflect fair value. Rithm Capital has not adjusted any of the quotes received in the periods presented. These quotations are generally received via email and contain disclaimers which state that they are “indicative” and not “actionable” — meaning that the party giving the quotation is not bound to purchase the security at the quoted price. Rithm Capital’s investments in Agency RMBS are classified within Level 2 of the fair value hierarchy because the market for these securities is very active and market prices are readily observable. The third-party pricing services and brokers engaged by Rithm Capital (collectively, “valuation providers”) use either the income approach or the market approach, or a combination of the two, in arriving at their estimated valuations of RMBS. Valuation providers using the market approach generally look at prices and other relevant information generated by market transactions involving identical or comparable assets. Valuation providers using the income approach create pricing models that generally incorporate such assumptions as discount rates, expected prepayment rates, expected default rates and expected loss severities. Rithm Capital has reviewed the methodologies utilized by its valuation providers and has found them to be consistent with GAAP requirements. In addition to obtaining multiple quotations, when available, and reviewing the valuation methodologies of its valuation providers, Rithm Capital creates its own internal pricing models for Level 3 securities and uses the outputs of these models as part of its process of evaluating the fair value estimates it receives from its valuation providers. These models incorporate the same types of assumptions as the models used by the valuation providers, but the assumptions are developed independently. These assumptions are regularly refined and updated at least quarterly by Rithm Capital and reviewed by its valuation group, which is separate from its investment acquisition and management group, to reflect market developments and actual performance. For 51.9% of Non-Agency RMBS, the ranges and weighted averages of assumptions used by Rithm Capital’s valuation providers are summarized in the table below. The assumptions used by Rithm Capital’s valuation providers with respect to the remainder of Non-Agency RMBS were not readily available.
(a)Represents the annualized rate of the prepayments as a percentage of the total principal balance of the pool. (b)Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance of the pool. (c)Represents the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding balance. (B)Rithm Capital was unable to obtain quotations from more than one source on these securities. (C)Includes Rithm Capital’s investments in interest-only notes for which the fair value option for financial instruments was elected. The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing residential mortgage loans held-for-sale, at fair value classified as Level 3:
The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing residential mortgage loans held-for-investment, at fair value classified as Level 3:
The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing consumer loans held-for-investment, at fair value, classified as Level 3:
The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing IRLCs:
The following table summarizes certain information regards the ranges and weighted averages of inputs used in valuing Asset-Backed Securities Issued:
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Summary of Certain Information Regarding the Inputs Used in Valuing the Servicer Advances | The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing the servicer advance investments, including the basic fee component of the related MSRs:
(A)Projected annual weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (B)Mortgage servicing amount is net of 5.74 bps which represents the amount Rithm Capital paid its servicers as a monthly servicing fee. (C)Weighted average maturity of the underlying residential mortgage loans in the pool.
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Schedule of Inputs Used in Valuing Residential Mortgage Loans | The following table summarizes the inputs used in valuing these residential mortgage loans as of June 30, 2023:
(A)The weighted average life is based on the expected timing of the receipt of cash flows. (B)Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance. (C)Loss severity is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding loan balance.
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VARIABLE INTEREST ENTITIES (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | The table below presents the carrying value and classification of the assets and liabilities of consolidated VIEs on the Consolidated Balance Sheets:
(A)The creditors of the VIEs do not have recourse to the general credit of Rithm Capital, and the assets of the VIEs are not directly available to satisfy Rithm Capital’s obligations. The following table summarizes the carrying value of the Company’s unconsolidated bonds retained pursuant to required risk retention regulations which reflects the Company’s maximum exposure to loss, as well as the UPB of transferred loans. These bonds are grouped and presented as part of Real Estate and Other Securities on the Consolidated Balance Sheets:
(A)Represents the percentage of the UPB that is 60+ days delinquent. (B)Excludes bonds retained by Rithm Capital. (C)Includes bonds retained pursuant to required risk retention regulations. (D)Classified within Level 3 of the fair value hierarchy as the valuation is based on certain unobservable inputs including discount rate, prepayment rates and loss severity. See Note 19 for details on unobservable inputs.
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Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | Others’ interests in the equity of consolidated subsidiaries is computed as follows:
Others’ interests in the net income (loss) is computed as follows:
(A)Rithm Capital owned 89.3% of Advance Purchaser as of June 30, 2023 and 2022.
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EQUITY AND EARNINGS PER SHARE (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Preferred Shares | The table below summarizes preferred shares:
(A)Each series has a liquidation preference or par value of $25.00 per share. (B)Carrying value reflects par value less discount and issuance costs. (C)Fixed-to-floating rate cumulative redeemable preferred. (D)Fixed-rate reset cumulative redeemable preferred.
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Schedule of Dividends Declared | Common dividends have been declared as follows:
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Schedule of Warrants | The table below summarizes the 2020 Warrants at June 30, 2023:
(A)Reflects the incremental number of additional common stock issuable upon exercise of warrants in accordance with the warrant agreement.
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Schedule of Outstanding Options | As of June 30, 2023, outstanding options were as follows:
The following table summarizes outstanding options as of June 30, 2023. The last sales price on the New York Stock Exchange for Rithm Capital’s common stock in the quarter ended June 30, 2023 was $9.35 per share.
(A)Options expire on the tenth anniversary from date of grant. (B)The exercise prices are subject to adjustment in connection with return of capital dividends. The following table summarizes activity in outstanding options:
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Schedule of Restricted Stock Awards | The table below summarizes the Company’s awards granted, forfeited or vested under the 2013 Plan and the 2023 Plan during the six months ended June 30, 2023:
(A)Number of PSUs assumes maximum levels of performance are achieved for outstanding unvested PSU awards.
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Schedule of Basic and Diluted Earnings Per Share | The following table summarizes the basic and diluted earnings per share calculations:
(A)Stock options and common stock purchase warrants that could potentially dilute basic earnings per share in the future were not included in the computation of diluted earnings per share for the periods where a loss has been recorded because they would have been anti-dilutive for the period presented. There were no anti-dilutive stock options or common stock purchase warrants for all periods presented. (B)RSU and PSU awards were included to the extent dilutive and issuable under the relevant performance measures.
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INCOME TAXES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of the following:
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BUSINESS AND ORGANIZATION (Details) $ in Millions |
Jun. 17, 2022
USD ($)
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Manager | |
Related Party Transaction [Line Items] | |
Payment for management fee | $ 400.0 |
BASIS OF PRESENTATION (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Feb. 29, 2020 |
Aug. 31, 2019 |
Jul. 31, 2019 |
Jun. 30, 2023 |
Jun. 30, 2023 |
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Cash and Cash Equivalents [Line Items] | |||||
Asset impairment charges | $ 0 | $ 0 | |||
7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||||
Cash and Cash Equivalents [Line Items] | |||||
Interest rate | 7.50% | 7.50% | |||
7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||||
Cash and Cash Equivalents [Line Items] | |||||
Interest rate | 7.125% | 7.125% | |||
6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||||
Cash and Cash Equivalents [Line Items] | |||||
Interest rate | 6.375% | 6.375% |
SEGMENT REPORTING - Segment Financial Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
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Segment Reporting Information [Line Items] | ||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ 465,562 | $ 469,478 | $ 935,401 | $ 925,878 | ||||||
Realization of cash flows | (245,101) | |||||||||
Change in fair value of MSRs and MSR financing receivables | 22,032 | 334,690 | (120,272) | 909,454 | ||||||
Servicing revenue, net | 487,594 | 804,168 | 815,129 | 1,835,332 | ||||||
Interest income | 398,786 | 211,648 | 745,400 | 437,061 | ||||||
Gain on originated residential mortgage loans, held-for-sale, net | 151,822 | 304,791 | 261,090 | 776,787 | ||||||
Total revenues | 1,038,202 | 1,320,607 | 1,821,619 | 3,049,180 | ||||||
Interest expense | 329,158 | 150,829 | 638,226 | 289,662 | ||||||
G&A and other | 371,114 | 985,914 | 727,149 | 1,649,960 | ||||||
Total operating expenses | 700,272 | 1,136,743 | 1,365,375 | 1,939,622 | ||||||
Realized and unrealized gains (losses) on investments, net | 89,425 | (137,231) | 13,776 | (222,537) | ||||||
Other income (loss), net | 15,860 | 59,388 | 46,338 | 111,720 | ||||||
Total other income (loss) | 105,285 | (77,843) | 60,114 | (110,817) | ||||||
Income (loss) before income taxes | 443,215 | 106,021 | 516,358 | 998,741 | ||||||
Income tax expense (benefit) | 56,530 | 72,690 | 39,724 | 275,479 | ||||||
Net income (loss) | 386,685 | 33,331 | 476,634 | 723,262 | ||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 6,889 | 14,182 | 5,589 | 19,791 | ||||||
Dividends on preferred stock | 22,395 | 22,427 | 44,790 | 44,888 | ||||||
Net Income Attributable to Common Stockholders - basic | 357,401 | (3,278) | 426,255 | 658,583 | ||||||
Investments | 26,389,693 | 26,389,693 | ||||||||
Cash and cash equivalents | 1,369,025 | 1,369,025 | ||||||||
Restricted cash | 319,765 | 319,765 | ||||||||
Other assets | 5,694,397 | 5,694,397 | ||||||||
Goodwill | 85,199 | 85,199 | $ 85,199 | |||||||
Total assets | 33,858,079 | 33,858,079 | 32,479,336 | |||||||
Debt | 23,618,364 | 23,618,364 | ||||||||
Other liabilities | 3,045,031 | 3,045,031 | ||||||||
Total liabilities | 26,663,395 | 26,663,395 | 25,469,268 | |||||||
Total equity | 7,194,684 | 7,062,998 | 7,194,684 | 7,062,998 | $ 6,954,543 | 7,010,068 | $ 7,184,712 | $ 6,669,380 | ||
Noncontrolling interests in equity of consolidated subsidiaries | [1] | 60,251 | 60,251 | 67,067 | ||||||
Total Rithm Capital stockholders’ equity | 7,134,433 | 7,134,433 | 6,943,001 | |||||||
Investments in equity method investees | 89,390 | 89,390 | ||||||||
MSRs | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Realization of cash flows | (139,410) | (180,265) | (245,101) | (380,590) | ||||||
Servicing revenue, net | 487,594 | 804,168 | 815,129 | 1,835,332 | ||||||
Origination | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Investments | 1,824,653 | 1,824,653 | ||||||||
Cash and cash equivalents | 223,222 | 223,222 | ||||||||
Restricted cash | 41,621 | 41,621 | ||||||||
Other assets | 159,964 | 159,964 | ||||||||
Goodwill | 11,836 | 11,836 | 11,836 | |||||||
Total assets | 2,261,296 | 2,261,296 | ||||||||
Debt | 1,741,717 | 1,741,717 | ||||||||
Other liabilities | 204,083 | 204,083 | ||||||||
Total liabilities | 1,945,800 | 1,945,800 | ||||||||
Total equity | 315,496 | 315,496 | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 9,978 | 9,978 | ||||||||
Total Rithm Capital stockholders’ equity | 305,518 | 305,518 | ||||||||
Investments in equity method investees | 0 | 0 | ||||||||
Servicing | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Realization of cash flows | (103,034) | (117,680) | (175,049) | (250,956) | ||||||
Servicing revenue, net | 405,621 | 689,443 | 717,519 | 1,512,841 | ||||||
Investments | 7,014,766 | 7,014,766 | ||||||||
Cash and cash equivalents | 513,195 | 513,195 | ||||||||
Restricted cash | 125,706 | 125,706 | ||||||||
Other assets | 2,371,343 | 2,371,343 | ||||||||
Goodwill | 12,540 | 12,540 | 12,540 | |||||||
Total assets | 10,037,550 | 10,037,550 | ||||||||
Debt | 4,255,588 | 4,255,588 | ||||||||
Other liabilities | 2,202,768 | 2,202,768 | ||||||||
Total liabilities | 6,458,356 | 6,458,356 | ||||||||
Total equity | 3,579,194 | 3,579,194 | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | ||||||||
Total Rithm Capital stockholders’ equity | 3,579,194 | 3,579,194 | ||||||||
Investments in equity method investees | 0 | 0 | ||||||||
MSR Related Investments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Investments | 1,962,023 | 1,962,023 | ||||||||
Cash and cash equivalents | 298,632 | 298,632 | ||||||||
Restricted cash | 71,069 | 71,069 | ||||||||
Other assets | 2,526,478 | 2,526,478 | ||||||||
Goodwill | 5,092 | 5,092 | $ 5,092 | |||||||
Total assets | 4,863,294 | 4,863,294 | ||||||||
Debt | 2,886,131 | 2,886,131 | ||||||||
Other liabilities | 50,832 | 50,832 | ||||||||
Total liabilities | 2,936,963 | 2,936,963 | ||||||||
Total equity | 1,926,331 | 1,926,331 | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 11,612 | 11,612 | ||||||||
Total Rithm Capital stockholders’ equity | 1,914,719 | 1,914,719 | ||||||||
Investments in equity method investees | 66,770 | 66,770 | ||||||||
Origination and Servicing | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 465,562 | 469,478 | 935,401 | 925,878 | ||||||
Change in fair value of MSRs and MSR financing receivables | 22,032 | 334,690 | (120,272) | 909,454 | ||||||
Servicing revenue, net | 487,594 | 804,168 | 815,129 | 1,835,332 | ||||||
Interest income | 164,861 | 74,313 | 299,186 | 156,739 | ||||||
Gain on originated residential mortgage loans, held-for-sale, net | 144,318 | 318,455 | 252,539 | 789,885 | ||||||
Total revenues | 796,773 | 1,196,936 | 1,366,854 | 2,781,956 | ||||||
Interest expense | 140,587 | 94,462 | 283,358 | 183,968 | ||||||
G&A and other | 312,433 | 525,228 | 623,020 | 1,114,776 | ||||||
Total operating expenses | 453,020 | 619,690 | 906,378 | 1,298,744 | ||||||
Realized and unrealized gains (losses) on investments, net | 10,585 | (1,829) | (1,836) | (5,155) | ||||||
Other income (loss), net | 29,249 | 18,319 | 51,743 | 50,238 | ||||||
Total other income (loss) | 39,834 | 16,490 | 49,907 | 45,083 | ||||||
Income (loss) before income taxes | 383,587 | 593,736 | 510,383 | 1,528,295 | ||||||
Income tax expense (benefit) | 52,515 | 154,180 | 41,472 | 353,275 | ||||||
Net income (loss) | 331,072 | 439,556 | 468,911 | 1,175,020 | ||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 1,231 | 1,328 | 1,043 | 1,963 | ||||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||||
Net Income Attributable to Common Stockholders - basic | 329,841 | 438,228 | 467,868 | 1,173,057 | ||||||
Investments | 10,801,442 | 10,801,442 | ||||||||
Cash and cash equivalents | 1,035,049 | 1,035,049 | ||||||||
Restricted cash | 238,396 | 238,396 | ||||||||
Other assets | 5,057,785 | 5,057,785 | ||||||||
Goodwill | 29,468 | 29,468 | ||||||||
Total assets | 17,162,140 | 17,162,140 | ||||||||
Debt | 8,883,436 | 8,883,436 | ||||||||
Other liabilities | 2,457,683 | 2,457,683 | ||||||||
Total liabilities | 11,341,119 | 11,341,119 | ||||||||
Total equity | 5,821,021 | 5,821,021 | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 21,590 | 21,590 | ||||||||
Total Rithm Capital stockholders’ equity | 5,799,431 | 5,799,431 | ||||||||
Investments in equity method investees | 66,770 | 66,770 | ||||||||
Residential Securities, Properties and Loans | Real Estate Securities | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | ||||||
Change in fair value of MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | ||||||
Servicing revenue, net | 0 | 0 | 0 | 0 | ||||||
Interest income | 122,476 | 54,584 | 236,723 | 110,933 | ||||||
Gain on originated residential mortgage loans, held-for-sale, net | 1,247 | 0 | 1,247 | 0 | ||||||
Total revenues | 123,723 | 54,584 | 237,970 | 110,933 | ||||||
Interest expense | 115,572 | 20,216 | 213,864 | 29,245 | ||||||
G&A and other | 1,560 | 710 | 2,190 | 1,482 | ||||||
Total operating expenses | 117,132 | 20,926 | 216,054 | 30,727 | ||||||
Realized and unrealized gains (losses) on investments, net | 77,442 | (124,034) | 31,443 | (200,563) | ||||||
Other income (loss), net | (2,035) | (2,127) | (1,870) | (4,727) | ||||||
Total other income (loss) | 75,407 | (126,161) | 29,573 | (205,290) | ||||||
Income (loss) before income taxes | 81,998 | (92,503) | 51,489 | (125,084) | ||||||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||||||
Net income (loss) | 81,998 | (92,503) | 51,489 | (125,084) | ||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||||
Net Income Attributable to Common Stockholders - basic | 81,998 | (92,503) | 51,489 | (125,084) | ||||||
Investments | 9,701,000 | 9,701,000 | ||||||||
Cash and cash equivalents | 268,083 | 268,083 | ||||||||
Restricted cash | 4,154 | 4,154 | ||||||||
Other assets | 230,001 | 230,001 | ||||||||
Goodwill | 0 | 0 | ||||||||
Total assets | 10,203,238 | 10,203,238 | ||||||||
Debt | 9,203,274 | 9,203,274 | ||||||||
Other liabilities | 73,121 | 73,121 | ||||||||
Total liabilities | 9,276,395 | 9,276,395 | ||||||||
Total equity | 926,843 | 926,843 | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | ||||||||
Total Rithm Capital stockholders’ equity | 926,843 | 926,843 | ||||||||
Investments in equity method investees | 0 | 0 | ||||||||
Residential Securities, Properties and Loans | Properties and Residential Mortgage Loans | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | ||||||
Change in fair value of MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | ||||||
Servicing revenue, net | 0 | 0 | 0 | 0 | ||||||
Interest income | 26,291 | 22,640 | 49,057 | 49,629 | ||||||
Gain on originated residential mortgage loans, held-for-sale, net | 6,257 | (13,664) | 7,304 | (13,098) | ||||||
Total revenues | 32,548 | 8,976 | 56,361 | 36,531 | ||||||
Interest expense | 30,830 | 11,332 | 57,022 | 32,200 | ||||||
G&A and other | 19,242 | 11,891 | 28,625 | 35,325 | ||||||
Total operating expenses | 50,072 | 23,223 | 85,647 | 67,525 | ||||||
Realized and unrealized gains (losses) on investments, net | (7,936) | 6,601 | (14,363) | 18,765 | ||||||
Other income (loss), net | 17,998 | 29,471 | 42,179 | 43,787 | ||||||
Total other income (loss) | 10,062 | 36,072 | 27,816 | 62,552 | ||||||
Income (loss) before income taxes | (7,462) | 21,825 | (1,470) | 31,558 | ||||||
Income tax expense (benefit) | 4,948 | (2,480) | 1,220 | 1,177 | ||||||
Net income (loss) | (12,410) | 24,305 | (2,690) | 30,381 | ||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||||
Net Income Attributable to Common Stockholders - basic | (12,410) | 24,305 | (2,690) | 30,381 | ||||||
Investments | 2,345,181 | 2,345,181 | ||||||||
Cash and cash equivalents | 546 | 546 | ||||||||
Restricted cash | 11,849 | 11,849 | ||||||||
Other assets | 100,699 | 100,699 | ||||||||
Goodwill | 0 | 0 | ||||||||
Total assets | 2,458,275 | 2,458,275 | ||||||||
Debt | 1,923,139 | 1,923,139 | ||||||||
Other liabilities | 320,311 | 320,311 | ||||||||
Total liabilities | 2,243,450 | 2,243,450 | ||||||||
Total equity | 214,825 | 214,825 | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | ||||||||
Total Rithm Capital stockholders’ equity | 214,825 | 214,825 | ||||||||
Investments in equity method investees | 0 | 0 | ||||||||
Consumer Loans | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | ||||||
Change in fair value of MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | ||||||
Servicing revenue, net | 0 | 0 | 0 | 0 | ||||||
Interest income | 24,401 | 18,109 | 38,688 | 37,042 | ||||||
Gain on originated residential mortgage loans, held-for-sale, net | 0 | 0 | 0 | 0 | ||||||
Total revenues | 24,401 | 18,109 | 38,688 | 37,042 | ||||||
Interest expense | 4,315 | 2,088 | 5,995 | 4,350 | ||||||
G&A and other | 2,734 | 2,160 | 4,500 | 4,414 | ||||||
Total operating expenses | 7,049 | 4,248 | 10,495 | 8,764 | ||||||
Realized and unrealized gains (losses) on investments, net | (3,994) | (7,196) | (9,984) | (20,929) | ||||||
Other income (loss), net | 5,396 | 15,725 | (3,326) | 24,497 | ||||||
Total other income (loss) | 1,402 | 8,529 | (13,310) | 3,568 | ||||||
Income (loss) before income taxes | 18,754 | 22,390 | 14,883 | 31,846 | ||||||
Income tax expense (benefit) | 48 | 1 | 107 | 38 | ||||||
Net income (loss) | 18,706 | 22,389 | 14,776 | 31,808 | ||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 5,658 | 12,854 | 4,546 | 17,828 | ||||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||||
Net Income Attributable to Common Stockholders - basic | 13,048 | 9,535 | 10,230 | 13,980 | ||||||
Investments | 1,602,571 | 1,602,571 | ||||||||
Cash and cash equivalents | 1,000 | 1,000 | ||||||||
Restricted cash | 21,454 | 21,454 | ||||||||
Other assets | 79,106 | 79,106 | ||||||||
Goodwill | 0 | 0 | ||||||||
Total assets | 1,704,131 | 1,704,131 | ||||||||
Debt | 1,441,648 | 1,441,648 | ||||||||
Other liabilities | 3,888 | 3,888 | ||||||||
Total liabilities | 1,445,536 | 1,445,536 | ||||||||
Total equity | 258,595 | 258,595 | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 38,661 | 38,661 | ||||||||
Total Rithm Capital stockholders’ equity | 219,934 | 219,934 | ||||||||
Investments in equity method investees | 0 | 0 | ||||||||
Mortgage Loans Receivable | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | ||||||
Change in fair value of MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | ||||||
Servicing revenue, net | 0 | 0 | 0 | 0 | ||||||
Interest income | 58,809 | 36,748 | 117,146 | 71,025 | ||||||
Gain on originated residential mortgage loans, held-for-sale, net | 0 | 0 | 0 | 0 | ||||||
Total revenues | 58,809 | 36,748 | 117,146 | 71,025 | ||||||
Interest expense | 29,282 | 12,680 | 59,974 | 19,649 | ||||||
G&A and other | 14,795 | 14,600 | 31,026 | 31,008 | ||||||
Total operating expenses | 44,077 | 27,280 | 91,000 | 50,657 | ||||||
Realized and unrealized gains (losses) on investments, net | 13,328 | (10,773) | 8,516 | (14,655) | ||||||
Other income (loss), net | (822) | 7,430 | 891 | 7,430 | ||||||
Total other income (loss) | 12,506 | (3,343) | 9,407 | (7,225) | ||||||
Income (loss) before income taxes | 27,238 | 6,125 | 35,553 | 13,143 | ||||||
Income tax expense (benefit) | (981) | (3,623) | (3,075) | (3,623) | ||||||
Net income (loss) | 28,219 | 9,748 | 38,628 | 16,766 | ||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||||
Net Income Attributable to Common Stockholders - basic | 28,219 | 9,748 | 38,628 | 16,766 | ||||||
Investments | 1,939,499 | 1,939,499 | ||||||||
Cash and cash equivalents | 49,375 | 49,375 | ||||||||
Restricted cash | 43,912 | 43,912 | ||||||||
Other assets | 119,642 | 119,642 | ||||||||
Goodwill | 55,731 | 55,731 | ||||||||
Total assets | 2,208,159 | 2,208,159 | ||||||||
Debt | 1,620,937 | 1,620,937 | ||||||||
Other liabilities | 15,890 | 15,890 | ||||||||
Total liabilities | 1,636,827 | 1,636,827 | ||||||||
Total equity | 571,332 | 571,332 | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | ||||||||
Total Rithm Capital stockholders’ equity | 571,332 | 571,332 | ||||||||
Investments in equity method investees | 0 | 0 | ||||||||
Corporate | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | ||||||
Change in fair value of MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | ||||||
Servicing revenue, net | 0 | 0 | 0 | 0 | ||||||
Interest income | 1,948 | 5,254 | 4,600 | 11,693 | ||||||
Gain on originated residential mortgage loans, held-for-sale, net | 0 | 0 | 0 | 0 | ||||||
Total revenues | 1,948 | 5,254 | 4,600 | 11,693 | ||||||
Interest expense | 8,572 | 10,051 | 18,013 | 20,250 | ||||||
G&A and other | 20,350 | 431,325 | 37,788 | 462,955 | ||||||
Total operating expenses | 28,922 | 441,376 | 55,801 | 483,205 | ||||||
Realized and unrealized gains (losses) on investments, net | 0 | 0 | 0 | 0 | ||||||
Other income (loss), net | (33,926) | (9,430) | (43,279) | (9,505) | ||||||
Total other income (loss) | (33,926) | (9,430) | (43,279) | (9,505) | ||||||
Income (loss) before income taxes | (60,900) | (445,552) | (94,480) | (481,017) | ||||||
Income tax expense (benefit) | 0 | (75,388) | 0 | (75,388) | ||||||
Net income (loss) | (60,900) | (370,164) | (94,480) | (405,629) | ||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||
Dividends on preferred stock | 22,395 | 22,427 | 44,790 | 44,888 | ||||||
Net Income Attributable to Common Stockholders - basic | (83,295) | (392,591) | (139,270) | (450,517) | ||||||
Investments | 0 | 0 | ||||||||
Cash and cash equivalents | 14,972 | 14,972 | ||||||||
Restricted cash | 0 | 0 | ||||||||
Other assets | 107,164 | 107,164 | ||||||||
Goodwill | 0 | 0 | ||||||||
Total assets | 122,136 | 122,136 | ||||||||
Debt | 545,930 | 545,930 | ||||||||
Other liabilities | 174,138 | 174,138 | ||||||||
Total liabilities | 720,068 | 720,068 | ||||||||
Total equity | (597,932) | (597,932) | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | ||||||||
Total Rithm Capital stockholders’ equity | (597,932) | (597,932) | ||||||||
Investments in equity method investees | 22,620 | 22,620 | ||||||||
Operating Segments | Origination | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | ||||||
Change in fair value of MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | ||||||
Servicing revenue, net | 0 | 0 | 0 | 0 | ||||||
Interest income | 26,552 | 46,216 | 52,085 | 101,587 | ||||||
Gain on originated residential mortgage loans, held-for-sale, net | 134,130 | 302,610 | 246,952 | 709,879 | ||||||
Total revenues | 160,682 | 348,826 | 299,037 | 811,466 | ||||||
Interest expense | 28,613 | 27,578 | 58,608 | 57,013 | ||||||
G&A and other | 143,064 | 349,432 | 283,576 | 758,190 | ||||||
Total operating expenses | 171,677 | 377,010 | 342,184 | 815,203 | ||||||
Realized and unrealized gains (losses) on investments, net | (112) | 0 | 56 | 0 | ||||||
Other income (loss), net | 255 | 1,832 | (335) | 3,927 | ||||||
Total other income (loss) | 143 | 1,832 | (279) | 3,927 | ||||||
Income (loss) before income taxes | (10,852) | (26,352) | (43,426) | 190 | ||||||
Income tax expense (benefit) | (2,718) | (6,522) | (10,878) | (6) | ||||||
Net income (loss) | (8,134) | (19,830) | (32,548) | 196 | ||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 386 | 1,287 | 344 | 1,694 | ||||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||||
Net Income Attributable to Common Stockholders - basic | (8,520) | (21,117) | (32,892) | (1,498) | ||||||
Operating Segments | Servicing | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 359,854 | 345,114 | 709,278 | 671,510 | ||||||
Change in fair value of MSRs and MSR financing receivables | 45,767 | 344,329 | 8,241 | 841,331 | ||||||
Servicing revenue, net | 405,621 | 689,443 | 717,519 | 1,512,841 | ||||||
Interest income | 102,687 | 16,757 | 186,920 | 28,110 | ||||||
Gain on originated residential mortgage loans, held-for-sale, net | 10,188 | 15,739 | 5,587 | 77,501 | ||||||
Total revenues | 518,496 | 721,939 | 910,026 | 1,618,452 | ||||||
Interest expense | 81,606 | 41,096 | 162,680 | 74,802 | ||||||
G&A and other | 94,074 | 105,796 | 194,908 | 208,629 | ||||||
Total operating expenses | 175,680 | 146,892 | 357,588 | 283,431 | ||||||
Realized and unrealized gains (losses) on investments, net | 386 | (1,780) | 195 | (1,812) | ||||||
Other income (loss), net | (5,434) | 5,192 | (18,271) | 6,135 | ||||||
Total other income (loss) | (5,048) | 3,412 | (18,076) | 4,323 | ||||||
Income (loss) before income taxes | 337,768 | 578,459 | 534,362 | 1,339,344 | ||||||
Income tax expense (benefit) | 51,925 | 151,236 | 56,413 | 312,352 | ||||||
Net income (loss) | 285,843 | 427,223 | 477,949 | 1,026,992 | ||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||||
Net Income Attributable to Common Stockholders - basic | 285,843 | 427,223 | 477,949 | 1,026,992 | ||||||
Operating Segments | MSR Related Investments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 105,708 | 124,364 | 226,123 | 254,368 | ||||||
Change in fair value of MSRs and MSR financing receivables | (23,735) | (9,639) | (128,513) | 68,123 | ||||||
Servicing revenue, net | 81,973 | 114,725 | 97,610 | 322,491 | ||||||
Interest income | 35,622 | 11,340 | 60,181 | 27,042 | ||||||
Gain on originated residential mortgage loans, held-for-sale, net | 0 | 0 | 0 | 0 | ||||||
Total revenues | 117,595 | 126,065 | 157,791 | 349,533 | ||||||
Interest expense | 30,368 | 25,788 | 62,070 | 52,153 | ||||||
G&A and other | 75,295 | 70,000 | 144,536 | 147,957 | ||||||
Total operating expenses | 105,663 | 95,788 | 206,606 | 200,110 | ||||||
Realized and unrealized gains (losses) on investments, net | 10,311 | (49) | (2,087) | (3,343) | ||||||
Other income (loss), net | 34,428 | 11,295 | 70,349 | 40,176 | ||||||
Total other income (loss) | 44,739 | 11,246 | 68,262 | 36,833 | ||||||
Income (loss) before income taxes | 56,671 | 41,523 | 19,447 | 186,256 | ||||||
Income tax expense (benefit) | 3,308 | 9,466 | (4,063) | 40,929 | ||||||
Net income (loss) | 53,363 | 32,057 | 23,510 | 145,327 | ||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 845 | 41 | 699 | 269 | ||||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||||
Net Income Attributable to Common Stockholders - basic | $ 52,518 | 32,016 | $ 22,811 | 145,058 | ||||||
Eliminations | Origination and Servicing | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Gain on originated residential mortgage loans, held-for-sale, net | $ (100) | $ (2,500) | ||||||||
|
SEGMENT REPORTING - Servicing Segment Revenues (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Segment Reporting Information [Line Items] | ||||
Realization of cash flows | $ (245,101) | |||
Servicing revenue, net | $ 487,594 | $ 804,168 | 815,129 | $ 1,835,332 |
Servicing | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 329,847 | 313,992 | 653,585 | 603,885 |
Ancillary and other fees | 30,007 | 31,122 | 55,693 | 67,625 |
Realization of cash flows | (103,034) | (117,680) | (175,049) | (250,956) |
Change in valuation inputs and assumptions and other | 148,801 | 462,009 | 183,290 | 1,092,287 |
Servicing revenue, net | 405,621 | 689,443 | 717,519 | 1,512,841 |
Servicing | MSR-owned assets | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 304,912 | 287,904 | 603,871 | 550,755 |
Residential mortgage loan UPB and other collateral | 401,628 | 399,900 | 401,628 | 399,900 |
Servicing | Residential whole loans | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 1,920 | 3,019 | 4,336 | 6,408 |
Residential mortgage loan UPB and other collateral | 8,753 | 10,959 | 8,753 | 10,959 |
Servicing | Third party | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 23,015 | 23,069 | 45,378 | 46,722 |
Residential mortgage loan UPB and other collateral | $ 95,603 | $ 87,190 | $ 95,603 | $ 87,190 |
EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Excess Mortgage Servicing Rights (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Servicing Assets at Fair Value [Line Items] | ||
Rithm Capital’s investment | $ 8,688,556 | $ 8,889,403 |
Excess mortgage servicing rights, at fair value | ||
Servicing Assets at Fair Value [Line Items] | ||
Rithm Capital’s investment | 291,402 | 321,803 |
Direct investments in Excess MSRs | ||
Servicing Assets at Fair Value [Line Items] | ||
Rithm Capital’s investment | 224,632 | 249,366 |
Excess MSR Joint Ventures | ||
Servicing Assets at Fair Value [Line Items] | ||
Rithm Capital’s investment | $ 66,770 | $ 72,437 |
EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Activity Related to the Carrying Value of Investments in Excess MSRs (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Carrying Value of Investments in Excess MSRs | |
Beginning balance | $ 8,889,403 |
Ending balance | 8,688,556 |
Excess MSRs | |
Carrying Value of Investments in Excess MSRs | |
Beginning balance | 249,366 |
Interest income | 9,391 |
Other income | 0 |
Proceeds from repayments | (23,005) |
Proceeds from sales | (703) |
Change in fair value | (10,417) |
Ending balance | $ 224,632 |
EXCESS MORTGAGE SERVICING RIGHTS - Summary of Direct Investments in Excess MSRs (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Schedule of Equity Method Investments [Line Items] | |||||
Weighted Average Life (Years) | 1 year 2 months 12 days | ||||
Agency | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Original and Recaptured Pools | $ (599) | $ 1,066 | $ (10,417) | $ (1,564) | |
Servicer advance investments | Servicer Advances | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Residential mortgage loan UPB and other collateral | 16,235,846 | 16,235,846 | $ 17,033,753 | ||
Excess MSRs | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Residential mortgage loan UPB and other collateral | 46,130,066 | $ 46,130,066 | |||
Weighted Average Life (Years) | 6 years 3 months 18 days | ||||
Amortized Cost Basis | 193,154 | $ 193,154 | |||
Carrying Value | $ 224,632 | $ 224,632 | $ 249,366 | ||
Excess MSRs | Minimum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 32500.00% | 32500.00% | |||
Excess MSRs | Maximum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 100.00% | 100.00% | |||
Excess MSRs | Weighted Average | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 56500.00% | 56500.00% | |||
Excess MSRs | Former Manager-managed funds | Minimum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 0.00% | 0.00% | |||
Excess MSRs | Former Manager-managed funds | Maximum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 50.00% | 50.00% | |||
Excess MSRs | Mr. Cooper | Minimum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 0.00% | 0.00% | |||
Excess MSRs | Mr. Cooper | Maximum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 35.00% | 35.00% |
EXCESS MORTGAGE SERVICING RIGHTS - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Excess MSR Joint Ventures | MSRs | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 8.30% |
EXCESS MORTGAGE SERVICING RIGHTS - Summary of Financial Results of Excess MSR Joint Ventures (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||||||||
Excess MSR | $ 123,668 | $ 123,668 | $ 135,356 | |||||
Other assets | 173,311 | 173,311 | 132,809 | |||||
Equity | 7,194,684 | $ 7,062,998 | 7,194,684 | $ 7,062,998 | $ 6,954,543 | 7,010,068 | $ 7,184,712 | $ 6,669,380 |
Rithm Capital’s investment | 8,688,556 | 8,688,556 | 8,889,403 | |||||
Interest income | 3,278 | 410 | 5,682 | 6,077 | ||||
Other income (loss) | 666 | (91) | (4,558) | (2,343) | ||||
Expenses | (8) | (8) | (16) | (16) | ||||
Net income (loss) | 386,685 | 33,331 | 476,634 | 723,262 | ||||
Excess MSR Joint Ventures | ||||||||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||||||||
Rithm Capital’s investment | $ 66,770 | $ 66,770 | $ 72,437 | |||||
Rithm Capital’s percentage ownership | 50.00% | 50.00% | 50.00% | |||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||||||||
Other assets | $ 10,558 | $ 10,558 | $ 10,204 | |||||
Other liabilities | (687) | (687) | (687) | |||||
Equity | 133,539 | 133,539 | $ 144,873 | |||||
Net income (loss) | $ 3,936 | $ 311 | $ 1,108 | $ 3,718 |
EXCESS MORTGAGE SERVICING RIGHTS - Summary of Equity Method Investees Changed - Roll Forward (Details) - Recurring Basis $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Increase (Decrease) in Equity Method Investments [Roll Forward] | |
Beginning balance | $ 72,437 |
Distributions of capital from equity method investees | (6,221) |
Change in fair value of investments in equity method investees | 554 |
Ending balance | $ 66,770 |
EXCESS MORTGAGE SERVICING RIGHTS - Summary of Excess MSRs Made Through Equity Method Investees (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||
Weighted Average Life (Years) | 1 year 2 months 12 days | |
Excess MSR Joint Ventures | ||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||
Rithm Capital Interest in Investees | 50.00% | 50.00% |
Excess MSR Joint Ventures | Agency Securities | ||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||
Rithm Capital Interest in Investees | 50.00% | |
Excess MSR Joint Ventures | Agency Securities | Agency | ||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||
Unpaid Principal Balance | $ 18,193,581 | |
Investee Interest in Excess MSR | 66.70% | |
Rithm Capital Interest in Investees | 50.00% | |
Amortized Cost Basis | $ 99,628 | |
Carrying Value | $ 123,668 | |
Weighted Average Life (Years) | 5 years 3 months 18 days |
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Carrying Value of Investments in MSRs and MSR Financing Receivables (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
|
Activity related to carrying value of investments in mortgage servicing rights [Roll Forward] | ||
Beginning balance | $ 8,889,403 | |
Purchases, net | 0 | |
Originations | 342,816 | |
Proceeds from sales | (423,391) | |
Amortization of servicing rights | (245,101) | |
Change in valuation inputs and assumptions | 124,829 | |
Ending balance | $ 8,688,556 | $ 8,688,556 |
Servicing asset at fair value, disposals, unpaid principal balance | 56,700,000 | |
Gain on sale of servicing asset, net | $ 4,100 |
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Servicing Fee Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Servicing Asset at Amortized Cost [Line Items] | ||||
Amortization of servicing rights | $ (245,101) | |||
Change in valuation inputs and assumptions, net of realized gains (losses) | (124,829) | |||
Change in fair value of derivative instruments | $ 0 | $ 0 | 0 | $ 7,189 |
Servicing revenue, net | 487,594 | 804,168 | 815,129 | 1,835,332 |
MSRs | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 432,965 | 434,789 | 872,197 | 856,344 |
Ancillary and other fees | 32,597 | 34,689 | 63,204 | 69,534 |
Servicing fee revenue, net and fees | 465,562 | 469,478 | 935,401 | 925,878 |
Amortization of servicing rights | (139,410) | (180,265) | (245,101) | (380,590) |
Change in valuation inputs and assumptions, net of realized gains (losses) | 161,442 | 514,955 | 124,829 | 1,359,669 |
Change in fair value of derivative instruments | 0 | 0 | 0 | 7,189 |
Gain (loss) on settlement of derivative instruments | 0 | 0 | 0 | (76,814) |
Servicing revenue, net | $ 487,594 | $ 804,168 | $ 815,129 | $ 1,835,332 |
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Investment in MSRs (Details) - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|||
Servicing Asset at Amortized Cost [Line Items] | ||||
Weighted Average Life (Years) | 1 year 2 months 12 days | |||
Carrying Value | $ 8,688,556 | $ 8,889,403 | ||
Residential mortgage loan repurchase liability | [1] | 1,296,097 | $ 1,219,890 | |
Mortgage Servicing Rights and Mortgage Servicing Rights Financing Receivable | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
UPB of Underlying Residential Mortgage Loans | $ 532,392,018 | |||
Weighted Average Life (Years) | 7 years 4 months 24 days | |||
Carrying Value | $ 8,688,556 | |||
MSRs | Weighted Average | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
Discount rate | 8.50% | |||
MSRs | Minimum | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
Discount rate | 7.80% | |||
MSRs | Maximum | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
Discount rate | 10.80% | |||
Agency | MSRs | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
UPB of Underlying Residential Mortgage Loans | $ 357,246,649 | |||
Weighted Average Life (Years) | 7 years 7 months 6 days | |||
Carrying Value | $ 5,703,219 | |||
Non-Agency | MSRs | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
UPB of Underlying Residential Mortgage Loans | $ 51,345,436 | |||
Weighted Average Life (Years) | 6 years 8 months 12 days | |||
Carrying Value | $ 722,415 | |||
Ginnie Mae | MSRs | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
UPB of Underlying Residential Mortgage Loans | $ 123,799,933 | |||
Weighted Average Life (Years) | 7 years 2 months 12 days | |||
Carrying Value | $ 2,262,922 | |||
|
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Narrative (Details) - USD ($) $ in Thousands |
6 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
Jan. 31, 2018 |
Jul. 31, 2017 |
|||
Schedule of MSRs [Line Items] | |||||||
Residential mortgage loan repurchase liability | [1] | $ 1,296,097 | $ 1,219,890 | ||||
Residential mortgage loans, held-for-sale | 3,092,667 | 3,398,298 | |||||
Reserve for non-recovery advances | $ 92,881 | $ 65,428 | |||||
Reserve for non-recovery advances, percent | 3.70% | 2.30% | |||||
Ocwen | Rithm Capital | |||||||
Schedule of MSRs [Line Items] | |||||||
Unpaid principal balance of underlying loans, transferred | $ 66,700,000 | ||||||
Unpaid principal balance of underlying loans, not yet transferred | $ 11,900,000 | ||||||
PHH Mortgage Corporation | |||||||
Schedule of MSRs [Line Items] | |||||||
Subservicer percent of UPB | 8.80% | ||||||
Mr. Cooper | |||||||
Schedule of MSRs [Line Items] | |||||||
Subservicer percent of UPB | 7.60% | ||||||
LoanCare | |||||||
Schedule of MSRs [Line Items] | |||||||
Subservicer percent of UPB | 5.50% | ||||||
Valon | |||||||
Schedule of MSRs [Line Items] | |||||||
Subservicer percent of UPB | 2.60% | ||||||
Flagstar Bank | |||||||
Schedule of MSRs [Line Items] | |||||||
Subservicer percent of UPB | 0.10% | ||||||
Newrez and Caliber | |||||||
Schedule of MSRs [Line Items] | |||||||
Subservicer percent of UPB | 75.40% | ||||||
Ginnie Mae Loans | |||||||
Schedule of MSRs [Line Items] | |||||||
Residential mortgage loans, held-for-sale | $ 500,000 | ||||||
Ocwen | |||||||
Schedule of MSRs [Line Items] | |||||||
Residential mortgage loan UPB and other collateral | $ 86,800,000 | $ 110,000,000 | |||||
Mortgage Loans Serviced | |||||||
Schedule of MSRs [Line Items] | |||||||
Residential mortgage loan UPB and other collateral | 95,600,000 | $ 87,200,000 | |||||
Subservicing revenue | $ 69,100 | $ 66,100 | |||||
|
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans (Details) - MSRs - Mortgage Loans |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 100.00% | 100.00% |
California | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 17.30% | 17.40% |
Florida | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 8.60% | 8.60% |
Texas | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 6.20% | 6.20% |
New York | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 6.00% | 6.00% |
Washington | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 5.80% | 5.90% |
New Jersey | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.40% | 4.40% |
Virginia | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.60% | 3.60% |
Maryland | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.40% | 3.40% |
Illinois | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.40% | 3.40% |
Georgia | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.00% | 2.90% |
Other U.S. | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 38.30% | 38.20% |
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Advances Included in Servicing Advances Receivable (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Schedule of Equity Method Investments [Line Items] | ||
Total | $ 385,927 | $ 398,820 |
Servicer Advances Receivable | ||
Schedule of Equity Method Investments [Line Items] | ||
Principal and interest advances | 575,916 | 664,495 |
Escrow advances (taxes and insurance advances) | 1,159,663 | 1,426,409 |
Foreclosure advances | 763,999 | 754,073 |
Total | 2,499,578 | 2,844,977 |
Servicer advances receivable related to agency MSRs | 447,600 | 526,500 |
Servicer advances receivable related to Ginnie Mae MSRS, recoverable from Ginnie Mae | 221,200 | 261,800 |
Servicer advances, unamortized discount and accrual | $ 51,700 | $ 19,500 |
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Summary of Reserve For Servicer Advances (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Servicer Advances Reserve [Roll Forward] | |
Beginning balance | $ 65,428 |
Provision | 41,541 |
Write-offs | (14,088) |
Ending balance | $ 92,881 |
SERVICER ADVANCE INVESTMENTS - Narrative (Details) - Advance Purchaser - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
---|---|---|---|
Schedule of Equity Method Investments [Line Items] | |||
Capital distributed to third-party co-investors | $ 71.5 | ||
Capital distributed to new residential | $ 597.9 | ||
Servicer advance investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Rithm Capital’s percentage ownership | 89.30% | 89.30% | 89.30% |
SERVICER ADVANCE INVESTMENTS - Summary of Investments in Servicer Advances (Details) - Servicer advance investments - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Investments in and Advances to Affiliates [Line Items] | ||
Amortized Cost Basis | $ 371,955 | $ 392,749 |
Carrying Value | $ 385,927 | $ 398,820 |
Weighted Average Discount Rate | 5.70% | 5.70% |
Weighted Average Yield | 6.00% | 5.60% |
Weighted Average Life (Years) | 8 years 1 month 6 days | 8 years 4 months 24 days |
SERVICER ADVANCE INVESTMENTS - Summary of Investments in Servicer Advances (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Investments in and Advances to Affiliates [Line Items] | ||
Outstanding Servicer Advances | $ 385,927 | $ 398,820 |
Face Amount of Secured Notes and Bonds Payable | 23,173,712 | |
Servicer advance investments | Servicer Advances | ||
Investments in and Advances to Affiliates [Line Items] | ||
UPB of Underlying Residential Mortgage Loans | 16,235,846 | 17,033,753 |
Outstanding Servicer Advances | $ 327,574 | $ 341,628 |
Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2.00% | 2.00% |
Face Amount of Secured Notes and Bonds Payable | $ 295,215 | $ 319,276 |
Gross Loan-to-Value | 87.40% | 90.20% |
Net Loan-to-Value | 85.20% | 88.30% |
Gross Cost of Funds | 7.30% | 6.50% |
Net Cost of Funds | 6.70% | 5.90% |
SERVICER ADVANCE INVESTMENTS - Summary of Investments in Servicer Advances - Components of Funded Advances (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Schedule of Equity Method Investments [Line Items] | ||
Total | $ 385,927 | $ 398,820 |
Servicer advance investments | Servicer Advances | ||
Schedule of Equity Method Investments [Line Items] | ||
Principal and interest advances | 60,545 | 66,892 |
Escrow advances (taxes and insurance advances) | 146,201 | 155,438 |
Foreclosure advances | 120,828 | 119,298 |
Total | $ 327,574 | $ 341,628 |
REAL ESTATE AND OTHER SECURITIES - Summary of Real Estate Securities (Details) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023
USD ($)
security
|
Dec. 31, 2022
USD ($)
|
|
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 25,451,879 | |
Carrying Value | $ 8,722,018 | $ 8,289,277 |
Weighted Average Life (Years) | 1 year 2 months 12 days | |
Investments | $ 26,389,693 | |
Residual Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | 17,900 | |
Non-Agency Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | 1,100 | |
AFS Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 77,260 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 69,217 | 73,439 |
Number of Securities | security | 1 | |
Weighted Average Coupon | 3.50% | |
Weighted Average Yield | 3.50% | |
Weighted Average Life (Years) | 11 years | |
AFS Non-Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 2,554,308 | |
Gross Unrealized Gains | 71,518 | |
Gross Unrealized Losses | (30,523) | |
Carrying Value | $ 379,957 | 397,076 |
Number of Securities | security | 333 | |
Weighted Average Coupon | 3.50% | |
Weighted Average Yield | 3.80% | |
Weighted Average Life (Years) | 5 years 6 months | |
Weighted Average Principal Subordination | 29.70% | |
FVO Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 7,822,721 | |
Gross Unrealized Gains | 56,076 | |
Gross Unrealized Losses | (23,931) | |
Carrying Value | $ 7,700,458 | 7,264,978 |
Number of Securities | security | 38 | |
Weighted Average Coupon | 5.10% | |
Weighted Average Yield | 5.10% | |
Weighted Average Life (Years) | 8 years 10 months 24 days | |
FVO Non-Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 14,997,590 | |
Gross Unrealized Gains | 73,761 | |
Gross Unrealized Losses | (89,671) | |
Carrying Value | $ 572,386 | 553,784 |
Number of Securities | security | 354 | |
Weighted Average Coupon | 2.90% | |
Weighted Average Yield | 5.70% | |
Weighted Average Life (Years) | 7 years 4 months 24 days | |
Weighted Average Principal Subordination | 15.80% | |
Agency And Non-Agency Residential Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 25,451,879 | |
Gross Unrealized Gains | 201,355 | |
Gross Unrealized Losses | (144,125) | |
Carrying Value | $ 8,722,018 | $ 8,289,277 |
Number of Securities | security | 726 | |
Weighted Average Coupon | 4.90% | |
Weighted Average Yield | 5.10% | |
Weighted Average Life (Years) | 8 years 8 months 12 days | |
Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 7,899,981 | |
Agency | Fixed Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 7,900,000 | |
Non-Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 17,551,898 | |
Non-Agency | Fixed Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 8,000,000 | |
Residual and interest - only notional amount | 7,200,000 | |
Non-Agency | Floating Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 9,500,000 | |
Residual and interest - only notional amount | 9,200,000 | |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 514 | |
Gross Unrealized Gains | 6 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 503 | |
Number of Securities | security | 2 | |
Weighted Average Coupon | 8.20% | |
Weighted Average Yield | 9.40% | |
Weighted Average Life (Years) | 1 year 8 months 12 days | |
Consumer loan bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 340 | |
Gross Unrealized Gains | 613 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 616 | |
Number of Securities | security | 2 | |
Weighted Average Life (Years) | 2 months 12 days | |
Interest-only securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 9,522,980 | |
Gross Unrealized Gains | 38,526 | |
Gross Unrealized Losses | (30,347) | |
Carrying Value | $ 154,552 | |
Number of Securities | security | 145 | |
Weighted Average Coupon | 0.80% | |
Weighted Average Yield | 8.20% | |
Weighted Average Life (Years) | 2 years 3 months 18 days | |
Servicing strips | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 4,178,674 | |
Gross Unrealized Gains | 26,181 | |
Gross Unrealized Losses | (3,110) | |
Carrying Value | $ 62,481 | |
Number of Securities | security | 61 | |
Weighted Average Coupon | 0.40% | |
Weighted Average Yield | 10.90% | |
Weighted Average Life (Years) | 3 years 9 months 18 days | |
Commercial Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 3,931 | |
Gross Unrealized Gains | 94 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 3,869 | |
Number of Securities | security | 2 | |
Weighted Average Coupon | 7.70% | |
Weighted Average Yield | 7.70% | |
Weighted Average Life (Years) | 1 year 9 months 18 days |
REAL ESTATE AND OTHER SECURITIES - Real Estate and Other Securities for Held to Maturity securities (Details) |
6 Months Ended | |
---|---|---|
Jun. 30, 2023
USD ($)
security
|
Dec. 31, 2022
USD ($)
|
|
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Outstanding Face Amount | $ 25,451,879,000 | |
Weighted Average Life (Years) | 1 year 2 months 12 days | |
Residential Mortgage Backed Securities, Held To Maturity, Treasury | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Outstanding Face Amount | $ 1,000,000,000 | |
Amortized Cost / Carrying Value | 978,982,000 | $ 0 |
Fair Value | 979,200,000 | |
Unrecognized Gains/(Losses) | $ 218,000 | |
Number of Securities | security | 1 | |
Weighted Average Yield | 5.40% | |
Weighted Average Life (Years) | 4 months 24 days |
REAL ESTATE AND OTHER SECURITIES - Schedule of Investment in Real Estate Securities (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Treasury | ||||
Purchases | ||||
Face | $ 1,000.0 | $ 1,000.0 | ||
Purchase price | 973.8 | 973.8 | ||
Sales | ||||
Face | 0.0 | 0.0 | ||
Amortized cost | 0.0 | 0.0 | ||
Sale price | 0.0 | 0.0 | ||
Gain (loss) on sale | 0.0 | 0.0 | ||
Agency | ||||
Purchases | ||||
Face | 0.0 | $ 0.0 | 2,162.4 | $ 998.2 |
Purchase price | 0.0 | 0.0 | 2,154.4 | 1,004.5 |
Sales | ||||
Face | 0.0 | 829.8 | 1,462.4 | 829.8 |
Amortized cost | 0.0 | 857.0 | 1,442.8 | 857.0 |
Sale price | 0.0 | 738.9 | 1,395.9 | 738.9 |
Gain (loss) on sale | 0.0 | (118.1) | (46.9) | (118.1) |
Non-Agency | ||||
Purchases | ||||
Face | 447.4 | 1,073.0 | 472.6 | 3,283.1 |
Purchase price | 30.2 | 32.9 | 32.6 | 148.6 |
Sales | ||||
Face | 0.0 | 0.0 | 0.0 | 0.0 |
Amortized cost | 0.2 | 0.0 | 0.2 | 1.6 |
Sale price | 0.0 | 0.0 | 0.0 | 0.0 |
Gain (loss) on sale | $ (0.2) | $ 0.0 | $ (0.2) | $ (1.6) |
REAL ESTATE AND OTHER SECURITIES - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Agency | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Face amount of securities purchased, unsettled | $ 0 | $ 0 | $ 738,400,000 | ||
Payments for securities purchased, unsettled | 730,000,000 | ||||
Face amount of securities sold | 490,800,000 | ||||
Proceeds of securities sold, unsettled | $ 471,600,000 | ||||
Debt securities, face amount of purchased securities | 0 | $ 0 | 2,162,400,000 | $ 998,200,000 | |
Treasury | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Debt securities, face amount of purchased securities | $ 1,000,000,000 | $ 1,000,000,000 | |||
Term of treasury bills | 6 months |
REAL ESTATE AND OTHER SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
security
| |
Debt Securities, Available-for-sale [Line Items] | |
Outstanding Face Amount | $ 25,451,879 |
Weighted Average Life (Years) | 1 year 2 months 12 days |
Less than 12 Months | |
Debt Securities, Available-for-sale [Line Items] | |
Outstanding Face Amount | $ 68,200 |
Before Credit Impairment - Amortized Cost Basis | 59,715 |
Credit Impairment - Amortized Cost Basis | 0 |
After Credit Impairment - Amortized Cost Basis | 59,715 |
Gross Unrealized Losses - Less than 12 Months | (5,143) |
Carrying Value - Less than 12 Months | $ 54,572 |
Number of Securities - Less than 12 Months | security | 71 |
Weighted Average Coupon | 3.00% |
Weighted Average Yield | 4.00% |
Weighted Average Life (Years) | 4 years 10 months 24 days |
12 or More Months | |
Debt Securities, Available-for-sale [Line Items] | |
Outstanding Face Amount | $ 311,114 |
Before Credit Impairment - Amortized Cost Basis | 303,980 |
Credit Impairment - Amortized Cost Basis | (11,624) |
After Credit Impairment - Amortized Cost Basis | 292,356 |
Gross Unrealized Losses - 12 or More Months | (25,380) |
Carrying Value - 12 or More Months | $ 266,976 |
Number of Securities - 12 or More Months | security | 127 |
Weighted Average Coupon | 3.70% |
Weighted Average Yield | 3.60% |
Weighted Average Life (Years) | 7 years 1 month 6 days |
Total/Weighted Average | |
Debt Securities, Available-for-sale [Line Items] | |
Outstanding Face Amount | $ 379,314 |
Before Credit Impairment - Amortized Cost Basis | 363,695 |
Credit Impairment - Amortized Cost Basis | (11,624) |
After Credit Impairment - Amortized Cost Basis | 352,071 |
Gross Unrealized Losses - Total | (30,523) |
Carrying Value - Total | $ 321,548 |
Number of Securities - Total | security | 198 |
Weighted Average Coupon | 3.60% |
Weighted Average Yield | 3.70% |
Weighted Average Life (Years) | 6 years 8 months 12 days |
REAL ESTATE AND OTHER SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position - Associated Intent to Sell (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Securities Rithm Capital intends to sell | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 0 | $ 0 |
Amortized Cost Basis After Credit Impairment | 0 | 0 |
Gross Unrealized Losses, Credit | 0 | 0 |
Gross Unrealized Losses, Non-Credit | 0 | 0 |
Securities Rithm Capital is more likely than not to be required to sell | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 0 |
Amortized Cost Basis After Credit Impairment | 0 | 0 |
Gross Unrealized Losses, Credit | 0 | 0 |
Gross Unrealized Losses, Non-Credit | 0 | 0 |
Credit impaired securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 73,616 | 77,843 |
Amortized Cost Basis After Credit Impairment | 73,965 | 78,101 |
Gross Unrealized Losses, Credit | (11,624) | (10,816) |
Gross Unrealized Losses, Non-Credit | (349) | (258) |
Non-credit impaired securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 247,932 | 271,405 |
Amortized Cost Basis After Credit Impairment | 278,106 | 304,831 |
Gross Unrealized Losses, Credit | 0 | 0 |
Gross Unrealized Losses, Non-Credit | (30,174) | (33,426) |
Total debt securities in an unrealized loss position | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 321,548 | 349,248 |
Amortized Cost Basis After Credit Impairment | 352,071 | 382,932 |
Gross Unrealized Losses, Credit | (11,624) | (10,816) |
Gross Unrealized Losses, Non-Credit | $ (30,523) | $ (33,684) |
REAL ESTATE AND OTHER SECURITIES - Summary of Activity Related to Credit Losses on Debt Securities (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses on available-for-sale debt securities at December 31, 2022 | $ 10,816 |
Additions to the allowance for credit losses on securities for which credit losses were not previously recorded | 0 |
Additions to the allowance for credit losses arising from purchases of available-for-sale debt securities accounted for as purchased financial assets with credit deterioration | 0 |
Reductions for securities sold during the period | (221) |
Reductions in the allowance for credit losses because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis | 0 |
Additional increases (decreases) to the allowance for credit losses on securities that had credit losses, or an allowance recorded in a previous period | 1,029 |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Allowance for credit losses on available-for-sale debt securities at June 30, 2023 | 11,624 |
Purchased Credit Deteriorated | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses on available-for-sale debt securities at December 31, 2022 | 4,140 |
Additions to the allowance for credit losses on securities for which credit losses were not previously recorded | 0 |
Additions to the allowance for credit losses arising from purchases of available-for-sale debt securities accounted for as purchased financial assets with credit deterioration | 0 |
Reductions for securities sold during the period | (221) |
Reductions in the allowance for credit losses because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis | 0 |
Additional increases (decreases) to the allowance for credit losses on securities that had credit losses, or an allowance recorded in a previous period | (168) |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Allowance for credit losses on available-for-sale debt securities at June 30, 2023 | 3,751 |
Non-Purchased Credit Deteriorated | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses on available-for-sale debt securities at December 31, 2022 | 6,676 |
Additions to the allowance for credit losses on securities for which credit losses were not previously recorded | 0 |
Additions to the allowance for credit losses arising from purchases of available-for-sale debt securities accounted for as purchased financial assets with credit deterioration | 0 |
Reductions for securities sold during the period | 0 |
Reductions in the allowance for credit losses because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis | 0 |
Additional increases (decreases) to the allowance for credit losses on securities that had credit losses, or an allowance recorded in a previous period | 1,197 |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Allowance for credit losses on available-for-sale debt securities at June 30, 2023 | $ 7,873 |
REAL ESTATE AND OTHER SECURITIES - Schedule of the Outstanding Face Amount and Carrying Value for Securities Uncollectible (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Outstanding Face Amount | $ 439,357 | $ 443,680 |
Carrying Value | $ 63,496 | $ 66,775 |
REAL ESTATE AND OTHER SECURITIES - Summary of Changes in Accretable Yield for Securities (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Certain Loans Acquired in Transfer Accounted for as Available-for-sale Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Balance, beginning | $ 41,200 |
Additions | 0 |
Accretion | (1,047) |
Reclassifications from (to) non-accretable difference | 2,653 |
Disposals | 0 |
Balance, ending | $ 42,806 |
RESIDENTIAL MORTGAGE LOANS - Residential Mortgage Loans Outstanding by Loan Type, Excluding REO (Details) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023
USD ($)
loan
|
Dec. 31, 2022
USD ($)
|
|
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Weighted Average Life (Years) | 1 year 2 months 12 days | |
Residential mortgage loans held-for-investment, at fair value | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 479,193 | |
Carrying Value | $ 400,206 | $ 452,519 |
Loan Count | loan | 8,914 | |
Weighted Average Yield | 8.70% | |
Weighted Average Life (Years) | 3 years 3 months 18 days | |
Total residential mortgage loans, held-for-sale, at lower of cost or market | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 100,595 | |
Carrying Value | $ 83,945 | 101,027 |
Loan Count | loan | 2,328 | |
Weighted Average Yield | 8.30% | |
Weighted Average Life (Years) | 3 years 4 months 24 days | |
Acquired performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 72,427 | |
Carrying Value | $ 61,083 | 72,425 |
Loan Count | loan | 1,992 | |
Weighted Average Yield | 8.40% | |
Weighted Average Life (Years) | 3 years 7 months 6 days | |
Acquired performing loans | Ginnie Mae | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | $ 311,600 | |
Acquired non-performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | 28,168 | |
Carrying Value | $ 22,862 | 28,602 |
Loan Count | loan | 336 | |
Weighted Average Yield | 8.20% | |
Weighted Average Life (Years) | 2 years 9 months 18 days | |
Acquired non-performing loans | Ginnie Mae | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | $ 210,900 | |
Total residential mortgage loans, held-for-sale, at fair value | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | 3,044,385 | |
Carrying Value | $ 3,008,722 | 3,297,271 |
Loan Count | loan | 11,129 | |
Weighted Average Yield | 6.30% | |
Weighted Average Life (Years) | 22 years 8 months 12 days | |
Acquired performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 968,911 | |
Carrying Value | $ 933,849 | 890,131 |
Loan Count | loan | 3,414 | |
Weighted Average Yield | 6.50% | |
Weighted Average Life (Years) | 10 years 9 months 18 days | |
Acquired non-performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 237,335 | |
Carrying Value | $ 216,219 | 340,342 |
Loan Count | loan | 1,236 | |
Weighted Average Yield | 4.60% | |
Weighted Average Life (Years) | 19 years 2 months 12 days | |
Originated loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 1,838,139 | |
Carrying Value | $ 1,858,654 | 2,066,798 |
Loan Count | loan | 6,479 | |
Weighted Average Yield | 6.40% | |
Weighted Average Life (Years) | 29 years 4 months 24 days | |
Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 3,144,980 | |
Carrying Value | $ 3,092,667 | $ 3,398,298 |
RESIDENTIAL MORTGAGE LOANS - Geographic Distribution of the Underlying Residential Mortgage Loans (Details) - Residential Mortgage Loans |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 100.00% | 100.00% |
Florida | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 11.10% | 10.90% |
California | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 8.70% | 10.20% |
Texas | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 8.00% | 8.90% |
New York | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 7.10% | 6.80% |
Georgia | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.30% | 4.20% |
Illinois | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.40% | 3.60% |
New Jersey | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.40% | 3.80% |
Indiana | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.20% | 3.20% |
Maryland | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.10% | 3.10% |
Virginia | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.00% | 2.70% |
Other U.S. | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 44.70% | 42.60% |
RESIDENTIAL MORTGAGE LOANS - Schedule of Aggregate Unpaid Principal Balance and Aggregate Carrying Value (Details) - 90+ - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | $ 0 | $ 0 |
Carrying Value | 0 | 0 |
Carrying Value Over (Under) UPB | 0 | 0 |
Residential Mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 335,499 | 468,147 |
Carrying Value | 294,929 | 423,321 |
Carrying Value Over (Under) UPB | $ (40,569) | $ (44,826) |
RESIDENTIAL MORTGAGE LOANS - Carrying Value of Mortgage Loans (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |
Balance, beginning | $ 3,398,298 |
Transfer of loans from held-for-investment | 30,556 |
Balance, ending | 3,092,667 |
Residential Portfolio Segment | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |
Balance, beginning | 3,850,817 |
Originations | 16,973,737 |
Sales | (17,331,809) |
Purchases/additional fundings | 116,564 |
Proceeds from repayments | (124,123) |
Transfer of loans to other assets | 2,528 |
Transfer of loans to real estate owned | (6,934) |
Transfers of loans to held-for-sale | (30,556) |
Valuation (provision) reversal on loans | (2,067) |
Changes in instrument-specific credit risk | 9,786 |
Other factors | 4,374 |
Balance, ending | 3,492,873 |
Loans Held-for-Investment, at Fair Value | Residential Portfolio Segment | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |
Balance, beginning | 452,519 |
Originations | 0 |
Sales | 0 |
Purchases/additional fundings | 1,269 |
Proceeds from repayments | (25,563) |
Transfer of loans to other assets | 0 |
Transfer of loans to real estate owned | (3,685) |
Transfers of loans to held-for-sale | (30,556) |
Transfer of loans from held-for-investment | 0 |
Valuation (provision) reversal on loans | 0 |
Changes in instrument-specific credit risk | 3,469 |
Other factors | 2,753 |
Balance, ending | 400,206 |
Residential Mortgage Loans, Held-for-Sale | Loans held-for-sale, at lower of cost or fair value | Residential Portfolio Segment | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |
Balance, beginning | 101,027 |
Originations | 0 |
Sales | (6,946) |
Purchases/additional fundings | 0 |
Proceeds from repayments | (5,932) |
Transfer of loans to other assets | 0 |
Transfer of loans to real estate owned | (2,137) |
Transfers of loans to held-for-sale | 0 |
Transfer of loans from held-for-investment | 0 |
Valuation (provision) reversal on loans | (2,067) |
Changes in instrument-specific credit risk | 0 |
Other factors | 0 |
Balance, ending | 83,945 |
Residential Mortgage Loans, Held-for-Sale | Loans Held-for-Sale, at Fair Value | Residential Portfolio Segment | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |
Balance, beginning | 3,297,271 |
Originations | 16,973,737 |
Sales | (17,324,863) |
Purchases/additional fundings | 115,295 |
Proceeds from repayments | (92,628) |
Transfer of loans to other assets | 2,528 |
Transfer of loans to real estate owned | (1,112) |
Transfers of loans to held-for-sale | 0 |
Transfer of loans from held-for-investment | 30,556 |
Valuation (provision) reversal on loans | 0 |
Changes in instrument-specific credit risk | 6,317 |
Other factors | 1,621 |
Balance, ending | $ 3,008,722 |
RESIDENTIAL MORTGAGE LOANS - Schedule of Net Interest Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Interest income: | ||||
Loans held-for-investment, at fair value | $ 9,214 | $ 10,468 | $ 18,723 | $ 20,749 |
Total interest income | 52,843 | 68,856 | 101,142 | 151,216 |
Interest expense: | ||||
Loans held-for-investment, at fair value | 4,849 | 3,081 | 9,519 | 6,162 |
Total interest expense | 48,618 | 43,171 | 96,911 | 89,213 |
Net interest income | 4,225 | 25,685 | 4,231 | 62,003 |
Loans held-for-sale, at lower of cost or fair value | ||||
Interest income: | ||||
Loans held-for-sale | 1,884 | 2,045 | 3,388 | 3,816 |
Interest expense: | ||||
Loans held-for-sale | 982 | 823 | 1,889 | 1,672 |
Loans held-for-sale, at fair value | ||||
Interest income: | ||||
Loans held-for-sale | 41,745 | 56,343 | 79,031 | 126,651 |
Interest expense: | ||||
Loans held-for-sale | $ 42,787 | $ 39,267 | $ 85,503 | $ 81,379 |
RESIDENTIAL MORTGAGE LOANS - Gain On Sale of Originated Mortgage Loans, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Long Lived Assets Held-for-sale [Line Items] | ||||
Gain (loss) on residential mortgage loans originated and sold, net | $ (119,821) | $ (421,834) | $ (154,135) | $ (792,255) |
Gain (loss) on settlement of residential mortgage loan origination derivative instruments | (11,483) | 526,933 | (1,579) | 1,051,756 |
MSRs retained on transfer of residential mortgage loans | 202,303 | 329,470 | 342,816 | 790,922 |
Other | 2,302 | 1,838 | (3,141) | 29,539 |
Realized gain on sale of originated residential mortgage loans, net | 73,301 | 436,407 | 183,961 | 1,079,962 |
Change in fair value of derivative instruments | 50,630 | (151,654) | 17,640 | (33,216) |
Gain on originated residential mortgage loans, held-for-sale, net | 151,822 | 304,791 | 261,090 | 776,787 |
Loan origination fees and direct loan origination costs | 94,000 | 116,800 | 162,900 | 369,300 |
Change in fair value of interest rate lock commitments | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Change in fair value of derivative instruments | (19,898) | 77,481 | 6,342 | (50,204) |
Change in fair value of derivative instruments | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Change in fair value of derivative instruments | 70,528 | (229,135) | 11,298 | 16,988 |
Change in fair value of residential mortgage loans | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Change in fair value of residential mortgage loans | $ 27,891 | $ 20,038 | $ 59,489 | $ (269,959) |
CONSUMER LOANS - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Consumer Loan SPVs | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 53.50% |
CONSUMER LOANS - Consumer Loan Investments made through Equity Method Investees (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Schedule of Equity Method Investments [Line Items] | ||
Weighted Average Expected Life (Years) | 1 year 2 months 12 days | |
Consumer Portfolio Segment | ||
Schedule of Equity Method Investments [Line Items] | ||
Unpaid Principal Balance | $ 1,651,989 | $ 330,428 |
Carrying Value | $ 1,602,571 | $ 363,756 |
Weighted Average Coupon | 12.00% | 17.80% |
Weighted Average Expected Life (Years) | 1 year 8 months 12 days | 3 years 4 months 24 days |
Consumer Portfolio Segment | SpringCastle | ||
Schedule of Equity Method Investments [Line Items] | ||
Unpaid Principal Balance | $ 291,564 | $ 330,428 |
Carrying Value | $ 319,725 | $ 363,756 |
Weighted Average Coupon | 18.00% | 17.80% |
Weighted Average Expected Life (Years) | 3 years 6 months | 3 years 4 months 24 days |
Consumer Portfolio Segment | Marcus | ||
Schedule of Equity Method Investments [Line Items] | ||
Unpaid Principal Balance | $ 1,360,425 | $ 0 |
Carrying Value | $ 1,282,846 | $ 0 |
Weighted Average Coupon | 10.70% | 0.00% |
Weighted Average Expected Life (Years) | 1 year 4 months 24 days |
CONSUMER LOANS - Schedule of Aggregate Unpaid Principal Balance and Aggregate Carrying Value (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
90+ | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | $ 0 | $ 0 |
Carrying Value | 0 | 0 |
Carrying Value Over (Under) UPB | 0 | 0 |
Consumer Portfolio Segment | Current | SpringCastle | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 286,397 | 325,192 |
Carrying Value | 314,133 | 358,057 |
Carrying Value Over (Under) UPB | 27,736 | 32,865 |
Consumer Portfolio Segment | Current | Marcus | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 1,360,425 | 0 |
Carrying Value | 1,282,846 | 0 |
Carrying Value Over (Under) UPB | (77,579) | 0 |
Consumer Portfolio Segment | 90+ | SpringCastle | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 5,167 | 5,236 |
Carrying Value | 5,592 | 5,699 |
Carrying Value Over (Under) UPB | 425 | 463 |
Consumer Portfolio Segment | 90+ | Marcus | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 0 | 0 |
Carrying Value | 0 | 0 |
Carrying Value Over (Under) UPB | 0 | 0 |
Consumer Portfolio Segment | Past Due | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 1,651,989 | 330,428 |
Carrying Value | 1,602,571 | 363,756 |
Carrying Value Over (Under) UPB | (49,418) | 33,328 |
Consumer Portfolio Segment | Past Due | SpringCastle | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 291,564 | 330,428 |
Carrying Value | 319,725 | 363,756 |
Carrying Value Over (Under) UPB | 28,161 | 33,328 |
Consumer Portfolio Segment | Past Due | Marcus | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 1,360,425 | 0 |
Carrying Value | 1,282,846 | 0 |
Carrying Value Over (Under) UPB | $ (77,579) | $ 0 |
CONSUMER LOANS - Carrying Value of Performing Loans (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Loans Receivable [Roll Forward] | ||
Proceeds from repayments | $ (21,364) | $ (49,806) |
Accretion of loan discount and premium amortization, net | 37,711 | $ 34,731 |
Changes in instrument-specific credit risk | 0 | |
Other factors | 231 | |
Consumer Portfolio Segment | Performing loans | ||
Loans Receivable [Roll Forward] | ||
Beginning balance | 363,756 | |
Purchases | 1,317,347 | |
Additional fundings | 13,493 | |
Proceeds from repayments | (89,784) | |
Accretion of loan discount and premium amortization, net | 7,743 | |
Changes in instrument-specific credit risk | 1,964 | |
Other factors | (11,948) | |
Ending balance | 1,602,571 | |
Consumer Portfolio Segment | Performing loans | SpringCastle | ||
Loans Receivable [Roll Forward] | ||
Beginning balance | 363,756 | |
Purchases | 0 | |
Additional fundings | 13,493 | |
Proceeds from repayments | (52,494) | |
Accretion of loan discount and premium amortization, net | 4,954 | |
Changes in instrument-specific credit risk | 1,964 | |
Other factors | (11,948) | |
Ending balance | 319,725 | |
Consumer Portfolio Segment | Performing loans | Marcus | ||
Loans Receivable [Roll Forward] | ||
Beginning balance | 0 | |
Purchases | 1,317,347 | |
Additional fundings | 0 | |
Proceeds from repayments | (37,290) | |
Accretion of loan discount and premium amortization, net | 2,789 | |
Changes in instrument-specific credit risk | 0 | |
Other factors | 0 | |
Ending balance | $ 1,282,846 |
SINGLE-FAMILY RENTAL PROPERTIES - Net Carrying Value (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Real Estate [Line Items] | ||
Investment in SFR properties, net | $ 965,194 | $ 971,313 |
Single Family | ||
Real Estate [Line Items] | ||
Land | 175,093 | 175,607 |
Building | 700,372 | 702,427 |
Capital improvements | 129,268 | 118,999 |
Total gross investment in SFR properties | 1,004,733 | 997,033 |
Accumulated depreciation | (39,539) | (25,720) |
Investment in SFR properties, net | $ 965,194 | $ 971,313 |
SINGLE-FAMILY RENTAL PROPERTIES - Narrative (Details) $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2023
USD ($)
security
|
Jun. 30, 2023
USD ($)
property
|
Jun. 30, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Real Estate [Line Items] | |||||
Capitalized acquisition costs | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,700 | |
Single Family | |||||
Real Estate [Line Items] | |||||
Accumulated depreciation | $ 13,874 | $ 6,600 | |||
Transfer to held-for-sale | 30 | 0 | |||
Single Family | Minimum | |||||
Real Estate [Line Items] | |||||
Lease term | 1 year | 1 year | 1 year | ||
Single Family | Maximum | |||||
Real Estate [Line Items] | |||||
Lease term | 2 years | 2 years | 2 years | ||
SFR Properties Held-for-Sale | |||||
Real Estate [Line Items] | |||||
Accumulated depreciation | $ 60 | ||||
Transfer to held-for-sale | property | 30 |
SINGLE-FAMILY RENTAL PROPERTIES - Activity in Single-Family Rental Properties (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | $ 971,313 | |
Ending balance | 965,194 | |
SFR Properties Held-for-Investment | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 971,313 | |
Acquisitions and capital improvements | 11,975 | |
Reclassifications to SFR properties | (9,747) | |
Dispositions | (250) | |
Accumulated depreciation | (13,814) | |
Ending balance | 959,477 | |
SFR Properties Held-for-Sale | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 0 | |
Acquisitions and capital improvements | 0 | |
Reclassifications to SFR properties | 9,747 | |
Dispositions | (3,970) | |
Accumulated depreciation | (60) | |
Ending balance | 5,717 | |
Single Family | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 971,313 | |
Acquisitions and capital improvements | 11,975 | |
Reclassifications to SFR properties | 0 | |
Dispositions | (4,220) | |
Accumulated depreciation | (13,874) | $ (6,600) |
Ending balance | $ 965,194 |
SINGLE-FAMILY RENTAL PROPERTIES - Revenue to be Received (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
|
---|---|
Real Estate [Line Items] | |
Total | $ 7,100 |
Single Family | |
Real Estate [Line Items] | |
Remainder of 2023 | 63,225 |
2024 and thereafter | 22,783 |
Total | $ 86,008 |
SINGLE-FAMILY RENTAL PROPERTIES - Activity in Single-Family Rental Portfolio by Units (Details) - 6 months ended Jun. 30, 2023 |
security |
property |
---|---|---|
SFR Properties Held-for-Investment | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 3,731 | |
Acquisition of SFR units | 5 | |
Transfer to held-for-sale | 30 | |
Disposition of SFR units | 1 | |
Ending balance | 3,705 | |
SFR Properties Held-for-Sale | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 0 | |
Acquisition of SFR units | 0 | |
Transfer to held-for-sale | 30 | |
Disposition of SFR units | (11) | |
Ending balance | 19 | |
Single Family | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 3,731 | |
Acquisition of SFR units | 5 | |
Transfer to held-for-sale | 30 | 0 |
Disposition of SFR units | (12) | |
Ending balance | 3,724 |
MORTGAGE LOANS RECEIVABLE - Summary of Mortgage Loans Receivable By Purpose (Details) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023
USD ($)
loan
|
Dec. 31, 2022
USD ($)
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 62,192 | $ 94,401 |
Mortgage Loans Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 1,939,499 | $ 2,064,028 |
% of Portfolio | 100.00% | |
Loan Count | loan | 1,134 | |
% of Portfolio | 100.00% | |
Weighted Average Yield | 9.20% | |
Weighted Average Original Life (Months) | 19 years 3 months 18 days | |
Mortgage Loans Receivable | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 898,824 | |
% of Portfolio | 46.30% | |
Loan Count | loan | 460 | |
% of Portfolio | 40.50% | |
Weighted Average Yield | 9.20% | |
Weighted Average Original Life (Months) | 15 years 4 months 24 days | |
Weighted Average Committed Loan Balance to Value, LTC | 76.00% | |
Weighted Average Committed Loan Balance to Value, LTARV | 64.00% | |
Mortgage Loans Receivable | Bridge | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 835,005 | |
% of Portfolio | 43.10% | |
Loan Count | loan | 469 | |
% of Portfolio | 41.40% | |
Weighted Average Yield | 9.00% | |
Weighted Average Original Life (Months) | 24 years 9 months 18 days | |
Weighted Average Committed Loan Balance to Value | 71.10% | |
Mortgage Loans Receivable | Renovation | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 205,670 | |
% of Portfolio | 10.60% | |
Loan Count | loan | 205 | |
% of Portfolio | 18.10% | |
Weighted Average Yield | 9.60% | |
Weighted Average Original Life (Months) | 14 years 3 months 18 days | |
Weighted Average Committed Loan Balance to Value, LTC | 78.00% | |
Weighted Average Committed Loan Balance to Value, LTARV | 64.90% |
MORTGAGE LOANS RECEIVABLE - Schedule of Mortgage Loans Receivable (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Financing Receivable [Roll Forward] | |
Beginning balance | $ 94,401 |
Paydowns and payoffs | (68,945) |
Ending balance | 62,192 |
Mortgage Loans Receivable | |
Financing Receivable [Roll Forward] | |
Beginning balance | 2,064,028 |
Initial loan advances | 623,008 |
Construction holdbacks and draws | 317,754 |
Paydowns and payoffs | (1,065,291) |
Ending balance | $ 1,939,499 |
MORTGAGE LOANS RECEIVABLE - Past Due Mortgage Loans Receivable (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
90+ | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | $ 0 | $ 0 |
Carrying Value | 0 | 0 |
Carrying Value Over (Under) UPB | 0 | 0 |
Mortgage Loans Receivable | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 1,922,424 | 2,064,028 |
Carrying Value | 1,922,424 | 2,064,028 |
Carrying Value Over (Under) UPB | 0 | 0 |
Mortgage Loans Receivable | 90+ | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 17,074 | 0 |
Carrying Value | 17,074 | 0 |
Carrying Value Over (Under) UPB | $ 0 | $ 0 |
MORTGAGE LOANS RECEIVABLE - Summary of the Geographic Distribution of Mortgage Loans Receivable (Details) - Mortgage Loans Receivable - Geographic Concentration Risk - Loan Origination Commitments |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 100.00% |
California | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 52.50% |
Washington | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 8.90% |
New York | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 7.10% |
Colorado | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 6.90% |
Florida | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 5.30% |
Arizona | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 4.60% |
Illinois | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 2.50% |
North Carolina | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 2.20% |
Texas | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 1.80% |
New Jersey | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 1.70% |
Other U.S. | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 6.50% |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Cash and Restricted Cash (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|---|---|
Cash and Cash Equivalents [Abstract] | ||||||
Cash and cash equivalents | [1] | $ 1,369,025 | $ 1,336,508 | |||
Restricted cash | [1] | 319,765 | 281,126 | |||
Total cash, cash equivalents and restricted cash | $ 1,688,790 | $ 1,617,634 | $ 1,944,808 | $ 1,528,442 | ||
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Restricted Cash (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
||
---|---|---|---|---|
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash | [1] | $ 319,765 | $ 281,126 | |
MSRs and servicer advances | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash | 71,069 | 69,347 | ||
Real estate and other securities | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash | 4,154 | 4,604 | ||
Consumer loans | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash | 21,454 | 15,930 | ||
SFR properties | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash | 11,849 | 4,627 | ||
Origination and servicing | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash | 167,327 | 161,249 | ||
Mortgage loans receivable | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash | $ 43,912 | $ 25,369 | ||
|
OTHER ASSETS AND LIABILITIES - Schedule of Other Assets and Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
||
---|---|---|---|---|
Other Assets | ||||
Margin receivable, net | $ 209,099 | $ 20,614 | ||
Excess MSRs, at fair value (Note 4) | 291,402 | 321,803 | ||
Servicer advance investments, at fair value (Note 6) | 385,927 | 398,820 | ||
Servicing fee receivables | 118,496 | 128,438 | ||
Principal and interest receivable | 147,859 | 106,608 | ||
Equity investments | 55,943 | 71,388 | ||
Other receivables | 126,663 | 146,131 | ||
REO | 17,975 | 19,379 | ||
Goodwill | 85,199 | 85,199 | ||
Notes receivable, at fair value | 33,250 | 0 | ||
Warrants, at fair value | 19,124 | 19,346 | ||
Property and equipment | 28,066 | 37,883 | ||
Intangible assets (Note 15) | 131,049 | 141,413 | ||
Prepaid expenses | 44,578 | 60,817 | ||
Operating lease right-of-use assets (Note 16) | 82,804 | 77,329 | ||
Derivative assets (Note 17) | 55,894 | 52,229 | ||
Loans receivable, at fair value | 28,942 | 94,401 | ||
Other assets | 173,311 | 132,809 | ||
Other assets | [1] | 2,035,581 | 1,914,607 | |
Accrued Expenses and Other Liabilities | ||||
Margin payable | 25,157 | 4,852 | ||
Interest payable | 124,041 | 87,700 | ||
Accounts payable | 189,813 | 155,492 | ||
Derivative liabilities (Note 17) | 9,372 | 18,064 | ||
Accrued compensation and benefits | 97,400 | 112,762 | ||
Operating lease liabilities (Note 16) | 107,501 | 101,225 | ||
Deferred tax liability | 751,481 | 711,855 | ||
Other liabilities | 309,981 | 294,717 | ||
Accrued expenses and other liabilities | [1] | $ 1,614,746 | $ 1,486,667 | |
|
OTHER ASSETS AND LIABILITIES - Real Estate Owned (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Real Estate Owned [Roll Forward] | |
Beginning balance | $ 19,379 |
Purchases | 0 |
Property received in satisfaction of loan | 14,662 |
Sales | (16,027) |
Valuation (provision) reversal | (38) |
Ending balance | 17,976 |
Residential Mortgage Loans | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Unpaid principal balance | 66,500 |
Mortgage Receivable | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Unpaid principal balance | $ 18,500 |
OTHER ASSETS AND LIABILITIES - Schedule of Notes and Loans Receivable (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Financing Receivable [Roll Forward] | |
Beginning balance | $ 94,401 |
Fundings | 33,250 |
Payment in Kind | 3,255 |
Proceeds from repayments | (68,945) |
Changes in instrument-specific credit risk | 0 |
Other factors | 231 |
Ending balance | 62,192 |
Loans Receivable | |
Financing Receivable [Roll Forward] | |
Beginning balance | 94,401 |
Fundings | 0 |
Payment in Kind | 3,255 |
Proceeds from repayments | (68,945) |
Changes in instrument-specific credit risk | 0 |
Other factors | 231 |
Ending balance | 28,942 |
Notes Receivable | |
Financing Receivable [Roll Forward] | |
Beginning balance | 0 |
Fundings | 33,250 |
Payment in Kind | 0 |
Proceeds from repayments | 0 |
Changes in instrument-specific credit risk | 0 |
Other factors | 0 |
Ending balance | $ 33,250 |
OTHER ASSETS AND LIABILITIES - Past Due Notes and Loans Receivable (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Current | ||
Financing Receivable, Past Due [Line Items] | ||
UPB | $ 130,214 | $ 157,745 |
Carrying Value | 62,192 | 94,401 |
Carrying Value Over (Under) UPB | (68,022) | (63,344) |
90+ | ||
Financing Receivable, Past Due [Line Items] | ||
UPB | 0 | 0 |
Carrying Value | 0 | 0 |
Carrying Value Over (Under) UPB | $ 0 | $ 0 |
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND OTHER - Schedule of General and Administrative Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Other Income and Expenses [Abstract] | ||||
Legal and professional | $ 21,385 | $ 20,822 | $ 34,140 | $ 49,408 |
Loan origination | 12,323 | 35,015 | 24,080 | 74,916 |
Occupancy | 16,382 | 28,886 | 34,748 | 58,663 |
Subservicing | 40,625 | 41,987 | 75,881 | 88,795 |
Loan servicing | 2,520 | 4,866 | 5,496 | 10,170 |
Property and maintenance | 23,935 | 22,108 | 47,970 | 45,711 |
Other | 64,338 | 71,587 | 126,348 | 143,846 |
Total general and administrative expenses | $ 181,508 | $ 225,271 | $ 348,663 | $ 471,509 |
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND OTHER - Schedule of Components of Other Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Other Income and Expenses [Abstract] | ||||
Real estate and other securities | $ (122,578) | $ (497,735) | $ (38,727) | $ (1,104,587) |
Residential mortgage loans and REO | (10,123) | (43,094) | 7,974 | (131,619) |
Derivative instruments | 215,952 | 416,393 | 64,946 | 1,038,565 |
Other | 6,174 | (12,795) | (20,417) | (24,896) |
Realized and unrealized gains (losses) on investments, net | 89,425 | (137,231) | 13,776 | (222,537) |
Unrealized gain (loss) on secured notes and bonds payable | 4,549 | 27,957 | 2,049 | 35,151 |
Rental revenue | 17,743 | 12,272 | 35,866 | 20,402 |
Property and maintenance revenue | 33,117 | 32,035 | 66,754 | 66,340 |
(Provision) reversal for credit losses on securities | (2,035) | (2,174) | (807) | (2,885) |
Valuation and credit loss (provision) reversal on loans and real estate owned | (3,777) | (1,614) | (2,202) | (4,643) |
Other income (loss) | (33,737) | (9,088) | (55,322) | (2,645) |
Other income (loss), net | 15,860 | 59,388 | 46,338 | 111,720 |
Total other income (loss) | $ 105,285 | $ (77,843) | $ 60,114 | $ (110,817) |
GOODWILL AND INTANGIBLE ASSETS - Carrying Value of Goodwill (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 85,199 |
Goodwill acquired | 0 |
Accumulated impairment loss | 0 |
Ending balance | 85,199 |
Origination | |
Goodwill [Roll Forward] | |
Beginning balance | 11,836 |
Goodwill acquired | 0 |
Accumulated impairment loss | 0 |
Ending balance | 11,836 |
Servicing | |
Goodwill [Roll Forward] | |
Beginning balance | 12,540 |
Goodwill acquired | 0 |
Accumulated impairment loss | 0 |
Ending balance | 12,540 |
MSR Related Investments | |
Goodwill [Roll Forward] | |
Beginning balance | 5,092 |
Goodwill acquired | 0 |
Accumulated impairment loss | 0 |
Ending balance | 5,092 |
Mortgage Loans Receivable | |
Goodwill [Roll Forward] | |
Beginning balance | 55,731 |
Goodwill acquired | 0 |
Accumulated impairment loss | 0 |
Ending balance | $ 55,731 |
GOODWILL AND INTANGIBLE ASSETS - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 206,130 | $ 188,995 |
Accumulated Amortization | 75,081 | 47,582 |
Intangible Assets, Net | 131,049 | 141,413 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 57,949 | 57,949 |
Accumulated Amortization | 16,063 | 12,960 |
Intangible Assets, Net | $ 41,886 | 44,989 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 3 years | |
Customer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 9 years | |
Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 137,922 | 120,787 |
Accumulated Amortization | 54,765 | 30,959 |
Intangible Assets, Net | 83,157 | 89,828 |
Indefinite-lived intangible assets | $ 21,400 | 21,400 |
Purchased technology | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 3 years | |
Purchased technology | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 7 years | |
Trademarks / Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 10,259 | 10,259 |
Accumulated Amortization | 4,253 | 3,663 |
Intangible Assets, Net | 6,006 | 6,596 |
Indefinite-lived intangible assets | $ 1,900 | $ 1,900 |
Trademarks / Trade names | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 1 year | |
Trademarks / Trade names | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 5 years |
GOODWILL AND INTANGIBLE ASSETS - Schedule of Amortization Expense (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
July 1 through December 31, 2023 | $ 14,398 |
2024 | 27,456 |
2025 | 25,776 |
2026 | 17,694 |
2027 and thereafter | 22,484 |
Intangible assets, net | $ 107,808 |
OPERATING LEASES - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Leases [Abstract] | |||||
Rent expense, net of sublease income | $ 10.9 | $ 11.0 | $ 23.1 | $ 23.7 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets | Prepaid Expense and Other Assets | Prepaid Expense and Other Assets | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | Accrued expenses and other liabilities | Accrued expenses and other liabilities | ||
Sublease rentals | $ 7.1 | $ 7.1 |
OPERATING LEASES - Future Commitments for Non-Cancelable Leases (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
July 1 through December 31, 2023 | $ 14,882 | |
2024 | 25,929 | |
2025 | 20,707 | |
2026 | 13,520 | |
2027 | 11,257 | |
2028 and thereafter | 37,630 | |
Total remaining undiscounted lease payments | 123,925 | |
Less: imputed interest | 16,424 | |
Total remaining discounted lease payments | $ 107,501 | $ 101,225 |
OPERATING LEASES - Other Information Related to Operating Leases (Details) |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 6 years 3 months 18 days | 5 years 8 months 12 days |
Weighted-average discount rate | 4.40% | 4.00% |
DERIVATIVES - Derivatives Recorded at Fair Value (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivative [Line Items] | ||
Derivative assets | $ 55,894 | $ 52,229 |
Derivative liabilities | 9,372 | 18,064 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative assets | 1,248 | 449 |
Derivative asset, variation margin accounts | 1,000,000 | 1,200,000 |
Interest rate lock commitments | ||
Derivative [Line Items] | ||
Derivative assets | 19,528 | 16,015 |
Derivative liabilities | 4,400 | 7,229 |
TBAs | ||
Derivative [Line Items] | ||
Derivative assets | 35,118 | 35,765 |
Derivative liabilities | 4,972 | 10,835 |
Options on treasury futures | ||
Derivative [Line Items] | ||
Derivative assets | $ 0 | $ 0 |
DERIVATIVES - Derivatives Notional Amount (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 21,240,000 | $ 23,085,000 |
Interest rate swaps | TBAs, short position | ||
Derivative [Line Items] | ||
Notional amount | $ 2,400,000 | $ 0 |
Derivative, cap interest rate | 3.40% | 0.00% |
Weighted average maturity | 43 months | 0 months |
Interest rate swaps | TBAs, long position | ||
Derivative [Line Items] | ||
Notional amount | $ 18,800,000 | $ 23,100,000 |
Derivative, cap interest rate | 2.20% | 1.90% |
Weighted average maturity | 31 months | 35 months |
Interest rate lock commitments | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 3,689,864 | $ 2,647,747 |
TBAs | TBAs, short position | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | 9,068,000 | 8,473,221 |
TBAs | TBAs, long position | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | $ 0 | $ 31,500 |
DERIVATIVES - Derivatives Gain (Losses) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Derivative [Line Items] | ||||
Servicing revenue, net | $ 0 | $ 0 | $ 0 | $ 7,189,000 |
Gain on originated residential mortgage loans, held-for-sale, net | 50,630,000 | (151,654,000) | 17,640,000 | (33,216,000) |
Gain (loss) on settlement of investments, net | 215,952,000 | 416,393,000 | 64,945,000 | 1,038,565,000 |
Total gain (loss) | 266,582,000 | 264,739,000 | 82,585,000 | 1,012,538,000 |
Gain (loss) on settlement of residential mortgage loan | (11,483,000) | 526,933,000 | (1,579,000) | 1,051,756,000 |
Servicing Revenue | ||||
Derivative [Line Items] | ||||
Gain (loss) on settlement of derivative instruments | 0 | 0 | 0 | (76,800,000) |
TBAs | ||||
Derivative [Line Items] | ||||
Servicing revenue, net | 0 | 0 | 0 | 3,300,000 |
Gain on originated residential mortgage loans, held-for-sale, net | 71,212,000 | (229,135,000) | 13,229,000 | 16,988,000 |
Gain (loss) on settlement of investments, net | 507,000 | 175,121,000 | (6,875,000) | 358,638,000 |
Treasury futures | ||||
Derivative [Line Items] | ||||
Servicing revenue, net | 0 | 0 | 0 | (1,746,000) |
Options on treasury futures | ||||
Derivative [Line Items] | ||||
Servicing revenue, net | 0 | 0 | 0 | 5,635,000 |
Interest rate lock commitments | ||||
Derivative [Line Items] | ||||
Gain on originated residential mortgage loans, held-for-sale, net | (19,898,000) | 77,481,000 | 6,342,000 | (50,204,000) |
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Gain on originated residential mortgage loans, held-for-sale, net | (684,000) | 0 | (1,931,000) | 0 |
Gain (loss) on settlement of investments, net | $ 215,445,000 | $ 241,272,000 | $ 71,820,000 | $ 679,927,000 |
DEBT OBLIGATIONS - Schedule of Debt Obligations (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 23,173,712,000 | |
Carrying Value | $ 23,072,434,000 | $ 21,356,679,000 |
Weighted Average Funding Cost | 6.00% | |
Weighted Average Life (Years) | 1 year 2 months 12 days | |
MSR purchase price holdback | $ 124,041,000 | 87,700,000 |
US Treasury Bill Securities | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 972,300,000 | |
Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 12,758,041,000 | |
Carrying Value | $ 12,757,428,000 | 11,257,736,000 |
Weighted Average Funding Cost | 5.90% | |
Weighted Average Life (Years) | 4 months 24 days | |
MSR purchase price holdback | $ 116,900,000 | |
Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 10,415,671,000 | |
Carrying Value | $ 10,315,006,000 | 10,098,943,000 |
Weighted Average Funding Cost | 6.20% | |
Weighted Average Life (Years) | 2 years 3 months 18 days | |
Warehouse Credit Facilities-Residential Mortgage Loans | Warehouse Credit Facilities | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 2,446,085,000 | |
Carrying Value | $ 2,445,472,000 | 2,606,004,000 |
Weighted Average Funding Cost | 6.60% | |
Weighted Average Life (Years) | 6 months | |
Repurchase agreements | $ 255,400,000 | |
Interest rate | 5.10% | |
Warehouse Credit Facilities-Residential Mortgage Loans | Warehouse Credit Facilities | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 17 years 1 month 6 days | |
Outstanding Face of Collateral | $ 2,837,968,000 | |
Amortized Cost Basis of Collateral | 2,886,669,000 | |
Carrying Value of Collateral | 2,792,211,000 | |
Warehouse Credit Facilities - Mortgage Loans Receivable | Warehouse Credit Facilities | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 1,108,682,000 | |
Carrying Value | $ 1,108,682,000 | 1,220,662,000 |
Weighted Average Funding Cost | 7.90% | |
Weighted Average Life (Years) | 3 months 18 days | |
Warehouse Credit Facilities - Mortgage Loans Receivable | Warehouse Credit Facilities | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 1 year | |
Outstanding Face of Collateral | $ 1,328,445,000 | |
Amortized Cost Basis of Collateral | 1,328,445,000 | |
Carrying Value of Collateral | 1,328,445,000 | |
Agency RMBS or U.S Treasury Bills | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 8,618,426,000 | |
Carrying Value | $ 8,618,426,000 | 6,821,788,000 |
Weighted Average Funding Cost | 5.30% | |
Weighted Average Life (Years) | 3 months 18 days | |
Agency RMBS or U.S Treasury Bills | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 8 years | |
Outstanding Face of Collateral | $ 8,899,981,000 | |
Amortized Cost Basis of Collateral | 8,716,511,000 | |
Carrying Value of Collateral | 8,748,656,000 | |
Non-Agency RMBS | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 584,848,000 | |
Carrying Value | $ 584,848,000 | 609,282,000 |
Weighted Average Funding Cost | 7.10% | |
Weighted Average Life (Years) | 1 year | |
Non-Agency RMBS | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 5 years 10 months 24 days | |
Outstanding Face of Collateral | $ 14,020,165,000 | |
Amortized Cost Basis of Collateral | 900,002,000 | |
Carrying Value of Collateral | 920,969,000 | |
Excess MSRs | ||
Debt Instrument [Line Items] | ||
Carrying Value | 202,663,000 | 227,596,000 |
Excess MSRs | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 202,663,000 | |
Carrying Value | $ 202,663,000 | 227,596,000 |
Weighted Average Funding Cost | 3.70% | |
Weighted Average Life (Years) | 2 years 1 month 6 days | |
Excess MSRs | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 6 years 1 month 6 days | |
Outstanding Face of Collateral | $ 64,323,647,000 | |
Amortized Cost Basis of Collateral | 242,967,000 | |
Carrying Value of Collateral | 286,573,000 | |
MSRs | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 4,305,473,000 | |
Carrying Value | $ 4,295,903,000 | 4,791,543,000 |
Weighted Average Funding Cost | 6.60% | |
Weighted Average Life (Years) | 2 years 3 months 18 days | |
MSRs | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 7 years 4 months 24 days | |
Outstanding Face of Collateral | $ 524,360,256,000 | |
Amortized Cost Basis of Collateral | 6,473,508,000 | |
Carrying Value of Collateral | 8,614,954,000 | |
Servicer Advance Investments | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 295,215,000 | |
Carrying Value | $ 294,398,000 | 318,445,000 |
Weighted Average Funding Cost | 7.30% | |
Weighted Average Life (Years) | 8 months 12 days | |
Servicer Advance Investments | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 8 years 2 months 12 days | |
Outstanding Face of Collateral | $ 327,574,000 | |
Amortized Cost Basis of Collateral | 371,955,000 | |
Carrying Value of Collateral | $ 385,927,000 | |
Servicer Advances | Secured Notes and Bonds Payable | Secured Overnight Financing Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 1.50% | |
Servicer Advances | Secured Notes and Bonds Payable | Secured Overnight Financing Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 3.30% | |
Servicer Advances | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 2,134,039,000 | |
Carrying Value | $ 2,133,531,000 | 2,361,259,000 |
Weighted Average Funding Cost | 4.50% | |
Weighted Average Life (Years) | 7 months 6 days | |
Interest rate | 1.60% | |
Face amount of debt at fixed rate | $ 1,200,000,000 | |
Servicer Advances | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 8 months 12 days | |
Outstanding Face of Collateral | $ 2,526,703,000 | |
Amortized Cost Basis of Collateral | 2,447,918,000 | |
Carrying Value of Collateral | 2,447,918,000 | |
Residential Mortgage Loans | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 650,000,000 | |
Carrying Value | $ 650,000,000 | 769,988,000 |
Weighted Average Funding Cost | 6.00% | |
Weighted Average Life (Years) | 10 months 24 days | |
Residential Mortgage Loans | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 29 years | |
Outstanding Face of Collateral | $ 655,807,000 | |
Amortized Cost Basis of Collateral | 661,185,000 | |
Carrying Value of Collateral | 667,699,000 | |
Consumer Loans | ||
Debt Instrument [Line Items] | ||
Carrying Value | 1,441,648,000 | 299,498,000 |
Consumer Loans | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 1,476,880,000 | |
Carrying Value | $ 1,441,648,000 | 299,498,000 |
Weighted Average Funding Cost | 9.30% | |
Weighted Average Life (Years) | 4 years 8 months 12 days | |
Consumer Loans | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 1 year 9 months 18 days | |
Outstanding Face of Collateral | $ 1,651,989,000 | |
Amortized Cost Basis of Collateral | 1,587,232,000 | |
Carrying Value of Collateral | 1,602,571,000 | |
SFR properties | ||
Debt Instrument [Line Items] | ||
Carrying Value | 784,608,000 | 822,372,000 |
SFR properties | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 827,339,000 | |
Carrying Value | $ 784,608,000 | 817,695,000 |
Weighted Average Funding Cost | 4.20% | |
Weighted Average Life (Years) | 3 years 9 months 18 days | |
SFR properties | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Amortized Cost Basis of Collateral | $ 958,104,000 | |
Carrying Value of Collateral | 958,104,000 | |
Mortgage Loans Receivable | ||
Debt Instrument [Line Items] | ||
Carrying Value | 1,620,937,000 | 1,733,581,000 |
Mortgage Loans Receivable | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 524,062,000 | |
Carrying Value | $ 512,255,000 | $ 512,919,000 |
Weighted Average Funding Cost | 5.60% | |
Weighted Average Life (Years) | 3 years 3 months 18 days | |
Mortgage Loans Receivable | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 7 months 6 days | |
Outstanding Face of Collateral | $ 560,721,000 | |
Amortized Cost Basis of Collateral | 560,721,000 | |
Carrying Value of Collateral | 560,721,000 | |
3.7% Secured Corporate Note | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 202,700,000 | |
Interest rate | 3.70% | |
2.5% To 3.5% Agency MSR Secured Note And Bond Payable | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 2,800,000,000 | |
2.5% To 3.5% Agency MSR Secured Note And Bond Payable | Secured Notes and Bonds Payable | Secured Overnight Financing Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 2.50% | |
2.5% To 3.5% Agency MSR Secured Note And Bond Payable | Secured Notes and Bonds Payable | Secured Overnight Financing Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 3.30% | |
3.0% To 5.4% Public Notes | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 1,600,000,000 | |
3.0% To 5.4% Public Notes | Secured Notes and Bonds Payable | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.00% | |
3.0% To 5.4% Public Notes | Secured Notes and Bonds Payable | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.40% | |
Revolving Warehouse Facility Backed Notes | Secured Notes and Bonds Payable | London Interbank Offered Rate | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 1.20% | |
Revolving Warehouse Facility Backed Notes | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 650,000,000 | |
Consumer Loan, UPB Class A | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.00% | |
Residential mortgage loan UPB and other collateral | $ 238,200,000 | |
Consumer Loan, UPB Class B | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.70% | |
Residential mortgage loan UPB and other collateral | $ 53,000,000 | |
Consumer Loan, Marcus | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 1,200,000,000 | |
Consumer Loan, Marcus | Secured Notes and Bonds Payable | Secured Overnight Financing Rate | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 3.00% |
DEBT OBLIGATIONS - Narrative (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Sep. 16, 2020
USD ($)
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2022
USD ($)
|
|
Debt Instrument [Line Items] | |||||
Face amount of debt | $ 23,173,712 | $ 23,173,712 | |||
Interest expense and warehouse line fees | 329,158 | $ 150,829 | 638,226 | $ 289,662 | |
Secured Financing Agreements | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | 12,758,041 | 12,758,041 | |||
Debt redemption percentage | 44,800,621 | ||||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Issuance fees | $ 4,000 | 4,000 | |||
Interest expense and warehouse line fees | $ 8,600 | ||||
Senior Notes | 2025 Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | $ 550,000 | ||||
Interest rate | 6.25% | ||||
Debt redemption percentage | $ 544,500 | ||||
Issuance fees | $ 8,300 | ||||
Debt instrument, restrictive covenants, minimum total unencumbered assets maintenance requirement | 1.20 | ||||
Debt redemption percentage | 101.00% |
DEBT OBLIGATIONS - Carrying Value of Debt Obligations (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Debt Instrument [Roll Forward] | |
Beginning balance | $ 21,356,679 |
Ending balance | 23,072,434 |
Excess MSRs | |
Debt Instrument [Roll Forward] | |
Beginning balance | 227,596 |
Ending balance | 202,663 |
MSRs | |
Debt Instrument [Roll Forward] | |
Beginning balance | 4,791,543 |
Ending balance | 4,295,903 |
Servicer advances | |
Debt Instrument [Roll Forward] | |
Beginning balance | 2,679,704 |
Ending balance | 2,427,929 |
Real Estate Securities | |
Debt Instrument [Roll Forward] | |
Beginning balance | 7,431,070 |
Ending balance | 9,203,274 |
Residential Mortgage Loans and REO | |
Debt Instrument [Roll Forward] | |
Beginning balance | 3,371,315 |
Ending balance | 3,095,472 |
Consumer Loans | |
Debt Instrument [Roll Forward] | |
Beginning balance | 299,498 |
Ending balance | 1,441,648 |
SFR properties | |
Debt Instrument [Roll Forward] | |
Beginning balance | 822,372 |
Ending balance | 784,608 |
Mortgage Loans Receivable | |
Debt Instrument [Roll Forward] | |
Beginning balance | 1,733,581 |
Ending balance | 1,620,937 |
Secured Financing Agreements | |
Debt Instrument [Roll Forward] | |
Beginning balance | 11,257,736 |
Borrowings | 44,800,621 |
Repayments | (43,302,336) |
Capitalized deferred financing costs, net of amortization | 1,408 |
Ending balance | 12,757,428 |
Secured Financing Agreements | Excess MSRs | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | MSRs | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | Servicer advances | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | Real Estate Securities | |
Debt Instrument [Roll Forward] | |
Borrowings | 26,093,901 |
Repayments | (24,321,697) |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | Residential Mortgage Loans and REO | |
Debt Instrument [Roll Forward] | |
Borrowings | 17,617,548 |
Repayments | (17,774,811) |
Capitalized deferred financing costs, net of amortization | 1,408 |
Secured Financing Agreements | Consumer Loans | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | SFR properties | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | (4,677) |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | Mortgage Loans Receivable | |
Debt Instrument [Roll Forward] | |
Borrowings | 1,089,172 |
Repayments | (1,201,151) |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Notes and Bonds Payable | |
Debt Instrument [Roll Forward] | |
Borrowings | 3,758,181 |
Repayments | (3,538,077) |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | (2,051) |
Capitalized deferred financing costs, net of amortization | (1,991) |
Secured Notes and Bonds Payable | Excess MSRs | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | (24,933) |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Notes and Bonds Payable | MSRs | |
Debt Instrument [Roll Forward] | |
Borrowings | 1,310,004 |
Repayments | (1,804,529) |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | (1,115) |
Secured Notes and Bonds Payable | Servicer advances | |
Debt Instrument [Roll Forward] | |
Borrowings | 1,262,565 |
Repayments | (1,517,240) |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 2,900 |
Secured Notes and Bonds Payable | Real Estate Securities | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Notes and Bonds Payable | Residential Mortgage Loans and REO | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | (116,730) |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | (3,258) |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Notes and Bonds Payable | Consumer Loans | |
Debt Instrument [Roll Forward] | |
Borrowings | 1,185,612 |
Repayments | (39,504) |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | 1,872 |
Capitalized deferred financing costs, net of amortization | (5,830) |
Secured Notes and Bonds Payable | SFR properties | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | (35,141) |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 2,054 |
Secured Notes and Bonds Payable | Mortgage Loans Receivable | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | (665) |
Capitalized deferred financing costs, net of amortization | $ 0 |
DEBT OBLIGATIONS - Contractual Maturities of Debt Obligations (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
|
---|---|
Debt maturing in: | |
July 1 through December 31, 2023 | $ 12,293,853 |
2024 | 5,336,962 |
2025 | 1,655,367 |
2026 | 1,736,959 |
2027 | 973,691 |
2028 and thereafter | 1,726,880 |
Total | 23,723,712 |
Face amount of debt | 23,173,712 |
Nonrecourse | |
Debt maturing in: | |
July 1 through December 31, 2023 | 1,204,448 |
2024 | 1,949,664 |
2025 | 0 |
2026 | 0 |
2027 | 728,691 |
2028 and thereafter | 1,476,880 |
Total | 5,359,683 |
Recourse | |
Debt maturing in: | |
July 1 through December 31, 2023 | 11,089,405 |
2024 | 3,387,298 |
2025 | 1,655,367 |
2026 | 1,736,959 |
2027 | 245,000 |
2028 and thereafter | 250,000 |
Total | 18,364,029 |
Nonrecourse, Secured Notes And Bonds Payable | |
Debt maturing in: | |
Total | 5,400,000 |
Recourse, Secured Financing Agreements | |
Debt maturing in: | |
Total | 12,800,000 |
Recourse, Secured Financing Agreements | Collateralized Secured Financing Agreement | |
Debt maturing in: | |
Face amount of debt | 8,600,000 |
Recourse, Secured Notes And Bonds Payable | |
Debt maturing in: | |
Total | $ 5,600,000 |
DEBT OBLIGATIONS - Borrowing Capacity (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
|
---|---|
Residential Mortgage Loans and REO | |
Debt Instrument [Line Items] | |
Borrowing Capacity | $ 5,398,330 |
Balance Outstanding | 2,034,184 |
Available Financing | 3,364,146 |
Loan originations | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 7,421,000 |
Balance Outstanding | 1,520,582 |
Available Financing | 5,900,418 |
Excess MSRs | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 286,380 |
Balance Outstanding | 202,662 |
Available Financing | 83,718 |
MSRs | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 7,155,473 |
Balance Outstanding | 4,305,473 |
Available Financing | 2,850,000 |
Servicer advances | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 3,595,000 |
Balance Outstanding | 2,429,254 |
Available Financing | 1,165,746 |
Residential mortgage loans | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 290,715 |
Balance Outstanding | 189,364 |
Available Financing | 101,351 |
Debt Excess Borrowing Capacity | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 24,146,898 |
Balance Outstanding | 10,681,519 |
Available Financing | $ 13,465,379 |
DEBT OBLIGATIONS - Schedule of Debt Redemption (Details) - 2025 Senior Notes - Senior Notes |
6 Months Ended | |
---|---|---|
Sep. 16, 2020 |
Jun. 30, 2023 |
|
Debt Instrument [Line Items] | ||
Debt redemption percentage | 101.00% | |
2023 | ||
Debt Instrument [Line Items] | ||
Debt redemption percentage | 101.563% | |
2024 and thereafter | ||
Debt Instrument [Line Items] | ||
Debt redemption percentage | 100.00% |
FAIR VALUE MEASUREMENTS - Carrying Values and Fair Values of Financial Assets Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
||||
---|---|---|---|---|---|---|---|---|---|
Assets | |||||||||
MSRs and MSR financing receivables | $ 8,688,556 | $ 8,889,403 | |||||||
Real estate and other securities | 8,722,018 | 8,289,277 | |||||||
Residential mortgage loans, held-for-sale | 3,092,667 | 3,398,298 | |||||||
Residential mortgage loans, held-for-sale, at fair value | 3,008,722 | 3,297,271 | |||||||
Residential mortgage loans subject to repurchase | 1,296,097 | [1] | 1,219,890 | [1] | $ 1,758,509 | ||||
Cash, cash equivalents and restricted cash | 1,688,790 | 1,617,634 | $ 1,944,808 | $ 1,528,442 | |||||
Derivative assets | 55,894 | 52,229 | |||||||
Liabilities | |||||||||
Residential mortgage loan repurchase liability | 1,300,000 | ||||||||
Derivative liabilities | 9,372 | 18,064 | |||||||
US Treasury Bill Securities | |||||||||
Liabilities | |||||||||
Amortized cost | 979,000 | ||||||||
Recurring Basis | |||||||||
Assets | |||||||||
Excess MSRs, principal balance | 64,323,647 | ||||||||
MSRs and MSR financing receivables, principal balance | 532,392,018 | ||||||||
Servicer advance investments, principal balance | 327,574 | ||||||||
Real estate and other securities, principal balance | 26,451,879 | ||||||||
Residential mortgage loans, held-for-sale, principal balance | 100,595 | ||||||||
Residential mortgage loans, held-for-sale, at fair value, principal balance | 3,044,385 | ||||||||
Residential mortgage loans, held-for-investment, at fair value, principal balance | 479,193 | ||||||||
Residential mortgage loans, subject to repurchase, principal balance | 1,296,097 | ||||||||
Consumer loans, principal balance | 1,651,989 | ||||||||
Mortgage loans receivable, principal balance | 1,939,499 | ||||||||
Note receivable, principal balance | 101,272 | ||||||||
Loans receivable, principal balance | 28,942 | ||||||||
Cash, cash equivalents and restricted cash | 1,688,790 | ||||||||
Derivative assets, principal balance | 32,686,554 | ||||||||
Liabilities | |||||||||
Secured financing agreements, principal balance | 12,758,041 | ||||||||
Secured notes and bonds payable, principal amount | 10,415,671 | ||||||||
Unsecured senior notes, net of issuance costs, principal balance | 545,930 | ||||||||
Residential mortgage loan repurchase liability, principal balance | 1,296,097 | ||||||||
Derivative liabilities, principal amount | 1,311,310 | ||||||||
Recurring Basis | Mortgage Loans Receivable Securitization | |||||||||
Liabilities | |||||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | 45,600 | $ 20,900 | |||||||
Recurring Basis | Asset-Backed Securities Issued | |||||||||
Liabilities | |||||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability value | 574,100 | ||||||||
Recurring Basis | Level 3 | |||||||||
Liabilities | |||||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | 14,127,755 | 13,455,778 | |||||||
Recurring Basis | Level 3 | Asset-Backed Securities Issued | |||||||||
Liabilities | |||||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability value | 261,866 | $ 319,486 | |||||||
Recurring Basis | Carrying Value | |||||||||
Assets | |||||||||
Excess MSRs | 291,402 | ||||||||
MSRs and MSR financing receivables | 8,688,556 | ||||||||
Servicer advance investments | 385,927 | ||||||||
Real estate and other securities | 9,701,000 | ||||||||
Residential mortgage loans, held-for-sale | 83,945 | ||||||||
Residential mortgage loans, held-for-sale, at fair value | 3,008,722 | ||||||||
Residential mortgage loans, held-for-investment, at fair value | 400,206 | ||||||||
Residential mortgage loans subject to repurchase | 1,296,097 | ||||||||
Consumer loans | 1,602,571 | ||||||||
Mortgage loans receivable | 1,939,499 | ||||||||
Notes receivable | 33,250 | ||||||||
Loans receivable | 28,942 | ||||||||
Cash, cash equivalents and restricted cash | 1,688,790 | ||||||||
Other assets | 21,131 | ||||||||
Derivative assets | 55,894 | ||||||||
Assets, fair value | 29,225,932 | ||||||||
Liabilities | |||||||||
Secured financing agreements | 12,757,428 | ||||||||
Secured notes and bonds payable | 10,315,006 | ||||||||
Unsecured senior notes, net of issuance costs | 545,930 | ||||||||
Residential mortgage loan repurchase liability | 1,296,097 | ||||||||
Derivative liabilities | 9,372 | ||||||||
Liabilities, fair value | 24,923,833 | ||||||||
Recurring Basis | Fair Value | |||||||||
Assets | |||||||||
Excess MSRs | 291,402 | ||||||||
MSRs and MSR financing receivables | 8,688,556 | ||||||||
Servicer advance investments | 385,927 | ||||||||
Real estate and other securities | 9,701,218 | ||||||||
Residential mortgage loans, held-for-sale | 83,945 | ||||||||
Residential mortgage loans, held-for-sale, at fair value | 3,008,722 | ||||||||
Residential mortgage loans, held-for-investment, at fair value | 400,206 | ||||||||
Residential mortgage loans subject to repurchase | 1,296,097 | ||||||||
Consumer loans | 1,602,571 | ||||||||
Mortgage loans receivable | 1,939,499 | ||||||||
Notes receivable | 33,250 | ||||||||
Loans receivable | 28,942 | ||||||||
Cash, cash equivalents and restricted cash | 1,688,790 | ||||||||
Other assets | 21,131 | ||||||||
Derivative assets | 55,894 | ||||||||
Assets, fair value | 29,226,150 | ||||||||
Liabilities | |||||||||
Secured financing agreements | 12,757,428 | ||||||||
Secured notes and bonds payable | 10,664,023 | ||||||||
Unsecured senior notes, net of issuance costs | 515,697 | ||||||||
Residential mortgage loan repurchase liability | 1,296,097 | ||||||||
Derivative liabilities | 9,372 | ||||||||
Liabilities, fair value | 25,242,617 | ||||||||
Recurring Basis | Fair Value | Level 1 | |||||||||
Assets | |||||||||
Excess MSRs | 0 | ||||||||
MSRs and MSR financing receivables | 0 | ||||||||
Servicer advance investments | 0 | ||||||||
Real estate and other securities | 979,200 | ||||||||
Residential mortgage loans, held-for-sale | 0 | ||||||||
Residential mortgage loans, held-for-sale, at fair value | 0 | ||||||||
Residential mortgage loans, held-for-investment, at fair value | 0 | ||||||||
Residential mortgage loans subject to repurchase | 0 | ||||||||
Consumer loans | 0 | ||||||||
Mortgage loans receivable | 0 | ||||||||
Notes receivable | 0 | ||||||||
Loans receivable | 0 | ||||||||
Cash, cash equivalents and restricted cash | 1,688,790 | ||||||||
Other assets | 0 | ||||||||
Derivative assets | 0 | ||||||||
Assets, fair value | 2,667,990 | ||||||||
Liabilities | |||||||||
Secured financing agreements | 0 | ||||||||
Secured notes and bonds payable | 0 | ||||||||
Unsecured senior notes, net of issuance costs | 0 | ||||||||
Residential mortgage loan repurchase liability | 0 | ||||||||
Derivative liabilities | 0 | ||||||||
Liabilities, fair value | 0 | ||||||||
Recurring Basis | Fair Value | Level 2 | |||||||||
Assets | |||||||||
Excess MSRs | 0 | ||||||||
MSRs and MSR financing receivables | 0 | ||||||||
Servicer advance investments | 0 | ||||||||
Real estate and other securities | 7,769,675 | ||||||||
Residential mortgage loans, held-for-sale | 0 | ||||||||
Residential mortgage loans, held-for-sale, at fair value | 2,871,464 | ||||||||
Residential mortgage loans, held-for-investment, at fair value | 0 | ||||||||
Residential mortgage loans subject to repurchase | 1,296,097 | ||||||||
Consumer loans | 0 | ||||||||
Mortgage loans receivable | 347,327 | ||||||||
Notes receivable | 0 | ||||||||
Loans receivable | 0 | ||||||||
Cash, cash equivalents and restricted cash | 0 | ||||||||
Other assets | 0 | ||||||||
Derivative assets | 36,366 | ||||||||
Assets, fair value | 12,320,929 | ||||||||
Liabilities | |||||||||
Secured financing agreements | 12,757,428 | ||||||||
Secured notes and bonds payable | 312,255 | ||||||||
Unsecured senior notes, net of issuance costs | 0 | ||||||||
Residential mortgage loan repurchase liability | 1,296,097 | ||||||||
Derivative liabilities | 4,972 | ||||||||
Liabilities, fair value | 14,370,752 | ||||||||
Recurring Basis | Fair Value | Level 3 | |||||||||
Assets | |||||||||
Excess MSRs | 291,402 | ||||||||
MSRs and MSR financing receivables | 8,688,556 | ||||||||
Servicer advance investments | 385,927 | ||||||||
Real estate and other securities | 952,343 | ||||||||
Residential mortgage loans, held-for-sale | 83,945 | ||||||||
Residential mortgage loans, held-for-sale, at fair value | 137,258 | ||||||||
Residential mortgage loans, held-for-investment, at fair value | 400,206 | ||||||||
Residential mortgage loans subject to repurchase | 0 | ||||||||
Consumer loans | 1,602,571 | ||||||||
Mortgage loans receivable | 1,592,172 | ||||||||
Notes receivable | 33,250 | ||||||||
Loans receivable | 28,942 | ||||||||
Cash, cash equivalents and restricted cash | 0 | ||||||||
Other assets | 21,131 | ||||||||
Derivative assets | 19,528 | ||||||||
Assets, fair value | 14,237,231 | ||||||||
Liabilities | |||||||||
Secured financing agreements | 0 | ||||||||
Secured notes and bonds payable | 10,351,768 | ||||||||
Unsecured senior notes, net of issuance costs | 515,697 | ||||||||
Residential mortgage loan repurchase liability | 0 | ||||||||
Derivative liabilities | 4,400 | ||||||||
Liabilities, fair value | 10,871,865 | ||||||||
Recurring Basis | Fair Value | Fair Value Measured at Net Asset Value Per Share | |||||||||
Assets | |||||||||
Other assets | $ 0 | ||||||||
|
FAIR VALUE MEASUREMENTS - Financial Assets Measured at Fair Value on a Recurring Basis using Level 3 Inputs (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Excess MSRs in Equity Method Investees | ||
Purchases, sales and repayments | ||
Rithm Capital’s percentage ownership | 50.00% | 50.00% |
Recurring Basis | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | $ 13,455,778 | |
Transfers | ||
Transfers from Level 3 | (205,332) | |
Transfers to Level 3 | 20,997 | |
Gain (loss) included in net income | ||
Credit losses on securities | 374 | |
Included in servicing revenue | (120,272) | |
Excess MSRs | (9,863) | |
Servicer advance investments | 7,900 | |
Residential mortgage loans | 4,448 | |
Consumer loans | (9,984) | |
Other income (loss), net | 66,381 | |
Gains (losses) included in OCI | 2,327 | |
Interest income | 44,703 | |
Purchases, sales and repayments | ||
Purchases, net | 1,865,245 | |
Proceeds from sales | (643,771) | |
Proceeds from repayments | (1,679,971) | |
Originations and other | 1,328,795 | |
Balance, ending | 14,127,755 | |
Recurring Basis | Level 3 | Servicer Advance Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 398,820 | |
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | |
Gain (loss) included in net income | ||
Credit losses on securities | 0 | |
Included in servicing revenue | 0 | |
Excess MSRs | 0 | |
Servicer advance investments | 7,900 | |
Residential mortgage loans | 0 | |
Consumer loans | 0 | |
Other income (loss), net | 0 | |
Gains (losses) included in OCI | 0 | |
Interest income | 9,471 | |
Purchases, sales and repayments | ||
Purchases, net | 445,470 | |
Proceeds from sales | 0 | |
Proceeds from repayments | (475,734) | |
Originations and other | 0 | |
Balance, ending | 385,927 | |
Recurring Basis | Level 3 | Excess MSRs | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 321,803 | |
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | |
Gain (loss) included in net income | ||
Credit losses on securities | 0 | |
Included in servicing revenue | 0 | |
Excess MSRs | (9,863) | |
Servicer advance investments | 0 | |
Residential mortgage loans | 0 | |
Consumer loans | 0 | |
Other income (loss), net | 0 | |
Gains (losses) included in OCI | 0 | |
Interest income | 9,391 | |
Purchases, sales and repayments | ||
Purchases, net | 0 | |
Proceeds from sales | (703) | |
Proceeds from repayments | (29,226) | |
Originations and other | 0 | |
Balance, ending | 291,402 | |
Recurring Basis | Level 3 | MSRs and MSR Financing Receivables | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 8,889,403 | |
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | |
Gain (loss) included in net income | ||
Credit losses on securities | 0 | |
Included in servicing revenue | (120,272) | |
Excess MSRs | 0 | |
Servicer advance investments | 0 | |
Residential mortgage loans | 0 | |
Consumer loans | 0 | |
Other income (loss), net | 0 | |
Gains (losses) included in OCI | 0 | |
Interest income | 0 | |
Purchases, sales and repayments | ||
Purchases, net | 0 | |
Proceeds from sales | (423,391) | |
Proceeds from repayments | 0 | |
Originations and other | 342,816 | |
Balance, ending | 8,688,556 | |
Recurring Basis | Level 3 | Non-Agency | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 950,860 | |
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | |
Gain (loss) included in net income | ||
Credit losses on securities | 374 | |
Included in servicing revenue | 0 | |
Excess MSRs | 0 | |
Servicer advance investments | 0 | |
Residential mortgage loans | 0 | |
Consumer loans | 0 | |
Other income (loss), net | 19,017 | |
Gains (losses) included in OCI | 2,327 | |
Interest income | 14,843 | |
Purchases, sales and repayments | ||
Purchases, net | 32,600 | |
Proceeds from sales | 0 | |
Proceeds from repayments | (67,678) | |
Originations and other | 0 | |
Balance, ending | 952,343 | |
Recurring Basis | Level 3 | Derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 8,786 | |
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | |
Gain (loss) included in net income | ||
Credit losses on securities | 0 | |
Included in servicing revenue | 0 | |
Excess MSRs | 0 | |
Servicer advance investments | 0 | |
Residential mortgage loans | 0 | |
Consumer loans | 0 | |
Other income (loss), net | 6,342 | |
Gains (losses) included in OCI | 0 | |
Interest income | 0 | |
Purchases, sales and repayments | ||
Purchases, net | 0 | |
Proceeds from sales | 0 | |
Proceeds from repayments | 0 | |
Originations and other | 0 | |
Balance, ending | 15,128 | |
Recurring Basis | Level 3 | Properties and Residential Mortgage Loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 713,896 | |
Transfers | ||
Transfers from Level 3 | (41,430) | |
Transfers to Level 3 | 20,997 | |
Gain (loss) included in net income | ||
Credit losses on securities | 0 | |
Included in servicing revenue | 0 | |
Excess MSRs | 0 | |
Servicer advance investments | 0 | |
Residential mortgage loans | 4,448 | |
Consumer loans | 0 | |
Other income (loss), net | 40,791 | |
Gains (losses) included in OCI | 0 | |
Interest income | 0 | |
Purchases, sales and repayments | ||
Purchases, net | 36,578 | |
Proceeds from sales | (233,170) | |
Proceeds from repayments | (49,863) | |
Originations and other | 45,217 | |
Balance, ending | 537,464 | |
Recurring Basis | Level 3 | Consumer Loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 363,756 | |
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | |
Gain (loss) included in net income | ||
Credit losses on securities | 0 | |
Included in servicing revenue | 0 | |
Excess MSRs | 0 | |
Servicer advance investments | 0 | |
Residential mortgage loans | 0 | |
Consumer loans | (9,984) | |
Other income (loss), net | 0 | |
Gains (losses) included in OCI | 0 | |
Interest income | 7,743 | |
Purchases, sales and repayments | ||
Purchases, net | 1,317,347 | |
Proceeds from sales | 13,493 | |
Proceeds from repayments | (89,784) | |
Originations and other | 0 | |
Balance, ending | 1,602,571 | |
Recurring Basis | Level 3 | Notes and Loans Receivable | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 94,401 | |
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | |
Gain (loss) included in net income | ||
Credit losses on securities | 0 | |
Included in servicing revenue | 0 | |
Excess MSRs | 0 | |
Servicer advance investments | 0 | |
Residential mortgage loans | 0 | |
Consumer loans | 0 | |
Other income (loss), net | 231 | |
Gains (losses) included in OCI | 0 | |
Interest income | 3,255 | |
Purchases, sales and repayments | ||
Purchases, net | 33,250 | |
Proceeds from sales | 0 | |
Proceeds from repayments | (68,945) | |
Originations and other | 0 | |
Balance, ending | 62,192 | |
Recurring Basis | Level 3 | Mortgage Loans Receivable | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 1,714,053 | |
Transfers | ||
Transfers from Level 3 | (163,902) | |
Transfers to Level 3 | 0 | |
Gain (loss) included in net income | ||
Credit losses on securities | 0 | |
Included in servicing revenue | 0 | |
Excess MSRs | ||
Servicer advance investments | 0 | |
Residential mortgage loans | 0 | |
Consumer loans | 0 | |
Other income (loss), net | 0 | |
Gains (losses) included in OCI | 0 | |
Interest income | 0 | |
Purchases, sales and repayments | ||
Purchases, net | 0 | |
Proceeds from sales | 0 | |
Proceeds from repayments | (898,741) | |
Originations and other | 940,762 | |
Balance, ending | $ 1,592,172 |
FAIR VALUE MEASUREMENTS - Financial Liabilities Measured at Fair Value on a Recurring Basis using Level 3 Inputs (Details) - Recurring Basis - Asset-Backed Securities Issued $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Purchases, sales and repayments | |
Balance, ending | $ 574,100 |
Level 3 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance, beginning | 319,486 |
Gains (losses) included in net income | |
Other income | (1,386) |
Purchases, sales and repayments | |
Proceeds from sales | 0 |
Payments | (56,234) |
Balance, ending | $ 261,866 |
FAIR VALUE MEASUREMENTS - Information Regarding Inputs used in Valuing Excess MSRs Owned Directly and through Equity Method Investees (Details) |
6 Months Ended |
---|---|
Jun. 30, 2023
$ / Loan
| |
Prepayment Rate | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.003 |
Prepayment Rate | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.995 |
Prepayment Rate | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.106 |
Prepayment Rate | Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.003 |
Prepayment Rate | Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.995 |
Prepayment Rate | Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.104 |
Prepayment Rate | Non-Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.005 |
Prepayment Rate | Non-Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.844 |
Prepayment Rate | Non-Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.130 |
Prepayment Rate | Ginnie Mae | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.004 |
Prepayment Rate | Ginnie Mae | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.825 |
Prepayment Rate | Ginnie Mae | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.103 |
Prepayment Rate | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.029 |
Prepayment Rate | Directly Held | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.122 |
Prepayment Rate | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.066 |
Prepayment Rate | Held through Equity Method Investees | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.074 |
Prepayment Rate | Held through Equity Method Investees | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.104 |
Prepayment Rate | Held through Equity Method Investees | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.087 |
Delinquency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.000 |
Delinquency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.800 |
Delinquency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.050 |
Delinquency | Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.000 |
Delinquency | Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.667 |
Delinquency | Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.018 |
Delinquency | Non-Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.007 |
Delinquency | Non-Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.800 |
Delinquency | Non-Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.212 |
Delinquency | Ginnie Mae | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.002 |
Delinquency | Ginnie Mae | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.800 |
Delinquency | Ginnie Mae | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.077 |
Delinquency | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.003 |
Delinquency | Directly Held | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.090 |
Delinquency | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.046 |
Delinquency | Held through Equity Method Investees | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.026 |
Delinquency | Held through Equity Method Investees | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.058 |
Delinquency | Held through Equity Method Investees | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.038 |
Recapture Rate | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.000 |
Recapture Rate | Directly Held | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.905 |
Recapture Rate | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.557 |
Recapture Rate | Held through Equity Method Investees | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.450 |
Recapture Rate | Held through Equity Method Investees | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.639 |
Recapture Rate | Held through Equity Method Investees | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.587 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0001 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0214 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0033 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0007 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0125 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0028 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Non-Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0001 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Non-Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0214 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Non-Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0046 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Ginnie Mae | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0018 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Ginnie Mae | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0073 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Ginnie Mae | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0042 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0007 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Directly Held | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0059 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0020 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Held through Equity Method Investees | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0016 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Held through Equity Method Investees | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0025 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Held through Equity Method Investees | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0020 |
Collateral Weighted Average Maturity (Years) | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 0 years |
Collateral Weighted Average Maturity (Years) | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 40 years |
Collateral Weighted Average Maturity (Years) | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 24 years |
Collateral Weighted Average Maturity (Years) | Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 0 years |
Collateral Weighted Average Maturity (Years) | Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 40 years |
Collateral Weighted Average Maturity (Years) | Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 23 years |
Collateral Weighted Average Maturity (Years) | Non-Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 0 years |
Collateral Weighted Average Maturity (Years) | Non-Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 40 years |
Collateral Weighted Average Maturity (Years) | Non-Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 24 years |
Collateral Weighted Average Maturity (Years) | Ginnie Mae | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 0 years |
Collateral Weighted Average Maturity (Years) | Ginnie Mae | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 39 years |
Collateral Weighted Average Maturity (Years) | Ginnie Mae | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 27 years |
Collateral Weighted Average Maturity (Years) | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 11 years |
Collateral Weighted Average Maturity (Years) | Directly Held | Excess MSRs | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 28 years |
Collateral Weighted Average Maturity (Years) | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 21 years |
Collateral Weighted Average Maturity (Years) | Held through Equity Method Investees | Excess MSRs | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 15 years |
Collateral Weighted Average Maturity (Years) | Held through Equity Method Investees | Excess MSRs | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 22 years |
Collateral Weighted Average Maturity (Years) | Held through Equity Method Investees | Excess MSRs | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 18 years |
Measurement Input, Servicing Cost | Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 6.85 |
Measurement Input, Servicing Cost | Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 7.01 |
Measurement Input, Servicing Cost | Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 6.93 |
Measurement Input, Servicing Cost | Non-Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 7.32 |
Measurement Input, Servicing Cost | Non-Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 9.62 |
Measurement Input, Servicing Cost | Non-Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 9.15 |
Measurement Input, Servicing Cost | Ginnie Mae | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 8.30 |
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Fair Value, Measurements, Nonrecurring | |
Schedule of Equity Method Investments [Line Items] | |
Assets, fair value | $ 95.4 |
Residential Mortgage Loans, Held-for-Sale | Fair Value, Measurements, Nonrecurring | |
Schedule of Equity Method Investments [Line Items] | |
Assets, fair value | 83.9 |
Real Estate Acquired in Satisfaction of Debt | Fair Value, Measurements, Nonrecurring | |
Schedule of Equity Method Investments [Line Items] | |
Assets, fair value | 11.5 |
Residential Mortgage Loans, Held-For-Sale, At Lower Cost Or Fair Value | |
Schedule of Equity Method Investments [Line Items] | |
Asset fair value adjustment | 2.1 |
Real Estate Owned | |
Schedule of Equity Method Investments [Line Items] | |
Asset fair value adjustment | $ 0.1 |
Weighted Average | |
Schedule of Equity Method Investments [Line Items] | |
Broker price discount | 22.00% |
Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Broker price discount | 10.00% |
Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Broker price discount | 25.00% |
Excess MSR Joint Ventures | Weighted Average | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 8.30% |
Excess MSR Joint Ventures | Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 8.00% |
Excess MSR Joint Ventures | Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 8.50% |
MSRs | Weighted Average | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 8.50% |
MSRs | Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 7.80% |
MSRs | Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 10.80% |
MSRs | Excess MSR Joint Ventures | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 8.30% |
London Interbank Offered Rate | MSRs and MSR Financing Receivables | |
Schedule of Equity Method Investments [Line Items] | |
Variable interest rate spread | 2.10% |
FAIR VALUE MEASUREMENTS - Information Regarding the Inputs used in Valuing the Servicer Advances (Details) |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value inputs, monthly servicing fee | 0.0574% |
Servicer Advances | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 1.20% |
Mortgage Servicing Amount | 0.00181 |
Servicer Advances | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2.10% |
Mortgage Servicing Amount | 0.00199 |
Servicer Advances | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2.10% |
Mortgage Servicing Amount | 0.00198 |
Prepayment Rate | Servicer Advances | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.033 |
Prepayment Rate | Servicer Advances | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.046 |
Prepayment Rate | Servicer Advances | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.046 |
Delinquency | Servicer Advances | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.029 |
Delinquency | Servicer Advances | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.206 |
Delinquency | Servicer Advances | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.203 |
Discount Rate | Servicer Advances | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.057 |
Discount Rate | Servicer Advances | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.062 |
Discount Rate | Servicer Advances | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.057 |
Collateral Weighted Average Maturity (Years) | Servicer Advances | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Collateral Weighted Average Maturity (Years) | 21 years 8 months 12 days |
Collateral Weighted Average Maturity (Years) | Servicer Advances | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Collateral Weighted Average Maturity (Years) | 22 years 1 month 6 days |
Collateral Weighted Average Maturity (Years) | Servicer Advances | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Collateral Weighted Average Maturity (Years) | 22 years 1 month 6 days |
FAIR VALUE MEASUREMENTS - Securities Valuation Methodology and Results (Details) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023
USD ($)
source
|
Dec. 31, 2022
USD ($)
|
|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Face Amount | $ 25,451,879 | |
Amortized Cost Basis | 8,664,788 | |
Real estate and other securities | $ 8,722,018 | $ 8,289,277 |
Number of broker quotation sources | source | 2 | |
Percent of securities | 51.90% | |
Multiple Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | $ 8,680,031 | |
Single Quote | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | 41,987 | |
Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Face Amount | 7,899,981 | |
Amortized Cost Basis | 7,737,530 | |
Agency | Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | 7,769,675 | |
Agency | Level 2 | Multiple Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | 7,769,675 | |
Agency | Level 2 | Single Quote | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | 0 | |
Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Face Amount | 17,551,898 | |
Amortized Cost Basis | 927,258 | |
Fair Value | $ 494,700 | |
Non-Agency | Minimum | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.053 | |
Non-Agency | Minimum | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.002 | |
Non-Agency | Minimum | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.000 | |
Non-Agency | Minimum | Loss Severity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.000 | |
Non-Agency | Maximum | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.126 | |
Non-Agency | Maximum | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.173 | |
Non-Agency | Maximum | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.027 | |
Non-Agency | Maximum | Loss Severity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.750 | |
Non-Agency | Weighted Average | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.070 | |
Non-Agency | Weighted Average | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.070 | |
Non-Agency | Weighted Average | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.004 | |
Non-Agency | Weighted Average | Loss Severity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.169 | |
Non-Agency | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | $ 952,343 | |
Non-Agency | Level 3 | Multiple Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | 910,356 | |
Non-Agency | Level 3 | Single Quote | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | $ 41,987 |
FAIR VALUE MEASUREMENTS - Schedule of Inputs Used In Valuing Residential Mortgage Loans, Consumer Loans, Mortgage Loans Receivable, Derivatives, and Mortgage Backed Securities (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
|
---|---|
Residential Mortgage Loans, Held-for-Investment, at Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans, held-for-investment, fair value | $ 400,206 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.087 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.032 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Minimum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.057 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.221 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.087 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.053 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.152 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.476 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.087 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.044 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.083 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.355 |
Consumer Loans Held-for-Investment, At Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans | $ 1,602,571 |
Consumer Loans Held-for-Investment, At Fair Value | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans | 319,725 |
Consumer Loans Held-for-Investment, At Fair Value | Marcus | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans | $ 1,282,846 |
Consumer Loans Held-for-Investment, At Fair Value | Minimum | Discount Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.084 |
Consumer Loans Held-for-Investment, At Fair Value | Minimum | Prepayment Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.080 |
Consumer Loans Held-for-Investment, At Fair Value | Minimum | Delinquency | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.000 |
Consumer Loans Held-for-Investment, At Fair Value | Minimum | Loss Severity | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.587 |
Consumer Loans Held-for-Investment, At Fair Value | Maximum | Discount Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.094 |
Consumer Loans Held-for-Investment, At Fair Value | Maximum | Prepayment Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.325 |
Consumer Loans Held-for-Investment, At Fair Value | Maximum | Delinquency | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.069 |
Consumer Loans Held-for-Investment, At Fair Value | Maximum | Loss Severity | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.587 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Discount Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.087 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Discount Rate | Marcus | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.107 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Prepayment Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.265 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Prepayment Rate | Marcus | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.197 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Delinquency | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.042 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Delinquency | Marcus | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.052 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Loss Severity | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.587 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Loss Severity | Marcus | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.074 |
Interest rate lock commitments | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, fair value | $ 15,128 |
Interest rate lock commitments | Minimum | Loan Funding Probability | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.007 |
Interest rate lock commitments | Minimum | Fair Value of Initial Servicing Rights (Bps) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.00077 |
Interest rate lock commitments | Maximum | Loan Funding Probability | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 1.000 |
Interest rate lock commitments | Maximum | Fair Value of Initial Servicing Rights (Bps) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.03450 |
Interest rate lock commitments | Weighted Average | Loan Funding Probability | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.848 |
Interest rate lock commitments | Weighted Average | Fair Value of Initial Servicing Rights (Bps) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.02263 |
Mortgage-Backed Securities Issued | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, fair value | $ 261,866 |
Mortgage-Backed Securities Issued | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.065 |
Mortgage-Backed Securities Issued | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.191 |
Mortgage-Backed Securities Issued | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.046 |
Mortgage-Backed Securities Issued | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.940 |
Real Estate Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, fair value | $ 494,700 |
Real Estate Securities | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.053 |
Real Estate Securities | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.002 |
Real Estate Securities | Minimum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.000 |
Real Estate Securities | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.000 |
Real Estate Securities | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.126 |
Real Estate Securities | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.173 |
Real Estate Securities | Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.027 |
Real Estate Securities | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.750 |
Real Estate Securities | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.070 |
Real Estate Securities | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.070 |
Real Estate Securities | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.004 |
Real Estate Securities | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.169 |
Performing loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 105,960 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 43,312 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.060 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.030 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.015 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.125 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.087 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.053 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.120 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.704 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.080 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.040 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.042 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.204 |
Performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 62,648 |
Non-performing loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | 31,298 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 21,469 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.086 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.110 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 2.2 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 2.205 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.091 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.380 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 3.4 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 7.782 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.090 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.330 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 2.5 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 2.783 |
Non-performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 9,829 |
FAIR VALUE MEASUREMENTS - Schedule of Inputs Used in Valuing Assets and Liabilities At Fair Value (Details) - Fair Value, Measurements, Nonrecurring - Fair Value $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value and Carrying Value | $ 83,945 |
Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.084 |
Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 3 years 4 months 24 days |
Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.045 |
CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.105 |
Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.288 |
Performing loans | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value and Carrying Value | $ 61,083 |
Non-performing loans | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value and Carrying Value | $ 22,862 |
Minimum | Performing loans | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.053 |
Minimum | Performing loans | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 3 years 6 months |
Minimum | Performing loans | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.036 |
Minimum | Performing loans | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.057 |
Minimum | Performing loans | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.221 |
Minimum | Non-performing loans | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.066 |
Minimum | Non-performing loans | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 2 years 2 months 12 days |
Minimum | Non-performing loans | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.021 |
Minimum | Non-performing loans | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.152 |
Minimum | Non-performing loans | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.350 |
Maximum | Performing loans | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.087 |
Maximum | Performing loans | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 4 years 7 months 6 days |
Maximum | Performing loans | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.053 |
Maximum | Performing loans | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.120 |
Maximum | Performing loans | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.704 |
Maximum | Non-performing loans | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.091 |
Maximum | Non-performing loans | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 3 years 4 months 24 days |
Maximum | Non-performing loans | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.032 |
Maximum | Non-performing loans | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.303 |
Maximum | Non-performing loans | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.528 |
Weighted Average | Performing loans | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.084 |
Weighted Average | Performing loans | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 3 years 7 months 6 days |
Weighted Average | Performing loans | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.051 |
Weighted Average | Performing loans | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.062 |
Weighted Average | Performing loans | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.234 |
Weighted Average | Non-performing loans | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.082 |
Weighted Average | Non-performing loans | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 2 years 9 months 18 days |
Weighted Average | Non-performing loans | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.029 |
Weighted Average | Non-performing loans | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.219 |
Weighted Average | Non-performing loans | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.433 |
VARIABLE INTEREST ENTITIES - Narrative (Details) - USD ($) $ in Thousands |
1 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
May 31, 2021 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
Mar. 31, 2022 |
Sep. 25, 2020 |
|
Variable Interest Entity [Line Items] | ||||||
Face amount of debt | $ 23,173,712 | |||||
Long-term debt | 23,723,712 | |||||
Recurring Basis | Mortgage Loans Receivable Securitization | ||||||
Variable Interest Entity [Line Items] | ||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | $ 45,600 | $ 20,900 | ||||
2022-RTL1 Securitization | Mortgage Loans Receivable | ||||||
Variable Interest Entity [Line Items] | ||||||
Debt instrument, term | 36 months | |||||
Consumer Loan SPVs | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership interest | 53.50% | |||||
Securitization Notes Payable | 2022-RTL1 Securitization | ||||||
Variable Interest Entity [Line Items] | ||||||
Face amount of debt | $ 456,700 | |||||
Long-term debt | $ 347,300 | |||||
VIE, consolidated | Securitization Notes Payable | ||||||
Variable Interest Entity [Line Items] | ||||||
Face amount of debt | $ 750,000 | |||||
Debt instrument, term | 3 years | |||||
VIE, consolidated | Securitization Notes Payable | Consumer Loan SPVs | ||||||
Variable Interest Entity [Line Items] | ||||||
Face amount of debt | $ 663,000 | |||||
Advance Purchaser | Corporate Joint Venture | ||||||
Variable Interest Entity [Line Items] | ||||||
Rithm Capital’s percentage ownership | 89.30% | 89.30% | 89.30% |
VARIABLE INTEREST ENTITIES - Variable Interest Entities, Assets and Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
||
---|---|---|---|---|
Assets | ||||
Servicer advance investments, at fair value | $ 385,927 | $ 398,820 | ||
Residential mortgage loans, held-for-investment, at fair value | 400,206 | 452,519 | ||
Residential mortgage loans, held-for-sale, at fair value | 3,008,722 | 3,297,271 | ||
Cash and cash equivalents | [1] | 1,369,025 | 1,336,508 | |
Restricted cash | 319,765 | |||
Total assets | 33,858,079 | 32,479,336 | ||
Liabilities | ||||
Secured financing agreements | [1] | 12,757,428 | 11,257,736 | |
Accrued expenses and other liabilities | [1] | 1,614,746 | 1,486,667 | |
Total liabilities | 26,663,395 | 25,469,268 | ||
VIE, consolidated | ||||
Assets | ||||
Servicer advance investments, at fair value | 376,980 | 387,675 | ||
Residential mortgage loans, held-for-investment, at fair value | 22,699 | |||
Residential mortgage loans, held-for-sale, at fair value | 663,755 | 844,000 | ||
Consumer loans | 319,725 | 363,756 | ||
Mortgage loans receivable | 347,327 | 349,975 | ||
Cash and cash equivalents | 47,552 | 85,961 | ||
Restricted cash | 34,329 | 31,000 | ||
Other assets | 5,308 | 172,025 | ||
Total assets | 1,794,976 | 2,257,091 | ||
Liabilities | ||||
Secured financing agreements | 51,325 | |||
Secured notes and bonds payable | 1,513,428 | 1,694,468 | ||
Accrued expenses and other liabilities | 13,367 | 33,108 | ||
Total liabilities | 1,526,795 | 1,778,901 | ||
VIE, consolidated | Advance Purchaser | ||||
Assets | ||||
Servicer advance investments, at fair value | 376,980 | 387,675 | ||
Residential mortgage loans, held-for-investment, at fair value | 0 | |||
Residential mortgage loans, held-for-sale, at fair value | 0 | 0 | ||
Consumer loans | 0 | 0 | ||
Mortgage loans receivable | 0 | 0 | ||
Cash and cash equivalents | 15,915 | 34,084 | ||
Restricted cash | 8,432 | 7,433 | ||
Other assets | 9 | 9 | ||
Total assets | 401,336 | 429,201 | ||
Liabilities | ||||
Secured financing agreements | 0 | |||
Secured notes and bonds payable | 289,950 | 313,093 | ||
Accrued expenses and other liabilities | 2,662 | 1,928 | ||
Total liabilities | 292,612 | 315,021 | ||
VIE, consolidated | Newrez Joint Ventures | ||||
Assets | ||||
Servicer advance investments, at fair value | 0 | 0 | ||
Residential mortgage loans, held-for-investment, at fair value | 0 | |||
Residential mortgage loans, held-for-sale, at fair value | 0 | 0 | ||
Consumer loans | 0 | 0 | ||
Mortgage loans receivable | 0 | 0 | ||
Cash and cash equivalents | 26,525 | 28,404 | ||
Restricted cash | 0 | 0 | ||
Other assets | 582 | 1,026 | ||
Total assets | 27,107 | 29,430 | ||
Liabilities | ||||
Secured financing agreements | 0 | |||
Secured notes and bonds payable | 0 | 0 | ||
Accrued expenses and other liabilities | 6,949 | 4,306 | ||
Total liabilities | 6,949 | 4,306 | ||
VIE, consolidated | Residential Mortgage Loans | ||||
Assets | ||||
Servicer advance investments, at fair value | 0 | 0 | ||
Residential mortgage loans, held-for-investment, at fair value | 22,699 | |||
Residential mortgage loans, held-for-sale, at fair value | 663,755 | 844,000 | ||
Consumer loans | 0 | 0 | ||
Mortgage loans receivable | 0 | 0 | ||
Cash and cash equivalents | 5,112 | 23,473 | ||
Restricted cash | 6,515 | 7,547 | ||
Other assets | 0 | 165,975 | ||
Total assets | 675,382 | 1,063,694 | ||
Liabilities | ||||
Secured financing agreements | 51,325 | |||
Secured notes and bonds payable | 649,357 | 768,959 | ||
Accrued expenses and other liabilities | 37 | 25,381 | ||
Total liabilities | 649,394 | 845,665 | ||
VIE, consolidated | Consumer Loan SPVs | ||||
Assets | ||||
Servicer advance investments, at fair value | 0 | 0 | ||
Residential mortgage loans, held-for-investment, at fair value | 0 | |||
Residential mortgage loans, held-for-sale, at fair value | 0 | 0 | ||
Consumer loans | 319,725 | 363,756 | ||
Mortgage loans receivable | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 6,458 | 6,652 | ||
Other assets | 4,717 | 5,253 | ||
Total assets | 330,899 | 375,661 | ||
Liabilities | ||||
Secured financing agreements | 0 | |||
Secured notes and bonds payable | 261,866 | 299,498 | ||
Accrued expenses and other liabilities | 1,295 | 1,144 | ||
Total liabilities | 263,161 | 300,642 | ||
VIE, consolidated | Mortgage Loans Receivable | ||||
Assets | ||||
Servicer advance investments, at fair value | 0 | 0 | ||
Residential mortgage loans, held-for-investment, at fair value | 0 | |||
Residential mortgage loans, held-for-sale, at fair value | 0 | 0 | ||
Consumer loans | 0 | 0 | ||
Mortgage loans receivable | 347,327 | 349,975 | ||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 12,924 | 9,368 | ||
Other assets | 0 | (238) | ||
Total assets | 360,251 | 359,105 | ||
Liabilities | ||||
Secured financing agreements | 0 | |||
Secured notes and bonds payable | 312,255 | 312,918 | ||
Accrued expenses and other liabilities | 2,424 | 349 | ||
Total liabilities | $ 314,679 | $ 313,267 | ||
|
VARIABLE INTEREST ENTITIES - Variable Interest Entities, Characteristics (Details) - SAFT 2013-1 Securitization Entity - VIE, consolidated - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Variable Interest Entity [Line Items] | ||
Residential mortgage loan UPB and other collateral | $ 11,388,241 | $ 11,481,471 |
Weighted average delinquency | 4.10% | 3.40% |
Net credit losses | $ 143,390 | $ 129,047 |
Face amount of debt held by third parties | 10,402,410 | 10,584,528 |
Carrying value of bonds retained by Rithm Capital | 916,907 | 905,695 |
Cash flows received by Rithm Capital on these bonds | $ 78,324 | $ 124,942 |
Number of days delinquent (in days) | 60 days |
VARIABLE INTEREST ENTITIES - Others' Interest in Equity of Consumer Loan Companies (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
|||
Noncontrolling Interest [Line Items] | ||||||||||
Total consolidated equity | $ 7,194,684 | $ 7,062,998 | $ 7,194,684 | $ 7,062,998 | $ 6,954,543 | $ 7,010,068 | $ 7,184,712 | $ 6,669,380 | ||
Others’ interest in equity of consolidated subsidiary | [1] | 60,251 | 60,251 | $ 67,067 | ||||||
Net income (loss) | 386,685 | 33,331 | 476,634 | 723,262 | ||||||
Others’ interest in net income (loss) of consolidated subsidiary | $ 6,889 | $ 14,182 | $ 5,589 | $ 19,791 | ||||||
Advance Purchaser | Corporate Joint Venture | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Rithm Capital’s percentage ownership | 89.30% | 89.30% | 89.30% | 89.30% | 89.30% | |||||
VIE, consolidated | Advance Purchaser | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Total consolidated equity | $ 108,737 | $ 108,737 | $ 114,180 | |||||||
Others’ interest in equity of consolidated subsidiary | 11,612 | 11,612 | 12,193 | |||||||
Net income (loss) | 7,927 | $ 380 | 6,557 | $ 2,515 | ||||||
Others’ interest in net income (loss) of consolidated subsidiary | 845 | 41 | 699 | 269 | ||||||
VIE, consolidated | Newrez Joint Ventures | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Total consolidated equity | 20,158 | 20,158 | 25,124 | |||||||
Others’ interest in equity of consolidated subsidiary | 9,978 | 9,978 | 12,437 | |||||||
Net income (loss) | 781 | 2,597 | 695 | 3,419 | ||||||
Others’ interest in net income (loss) of consolidated subsidiary | 386 | 1,287 | 344 | 1,694 | ||||||
VIE, consolidated | Consumer Loan SPVs | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Total consolidated equity | 82,926 | 82,926 | 91,263 | |||||||
Others’ interest in equity of consolidated subsidiary | 38,661 | 38,661 | $ 42,437 | |||||||
Net income (loss) | 12,168 | 27,642 | 9,776 | 38,340 | ||||||
Others’ interest in net income (loss) of consolidated subsidiary | $ 5,658 | $ 12,854 | $ 4,546 | $ 17,828 | ||||||
VIE, consolidated | Advance Purchaser | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Others’ ownership interest | 10.70% | 10.70% | 10.70% | |||||||
VIE, consolidated | Advance Purchaser | Weighted Average | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Others’ ownership interest | 10.70% | 10.70% | 10.70% | 10.70% | ||||||
VIE, consolidated | Newrez Joint Ventures | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Others’ ownership interest | 49.50% | 49.50% | 49.50% | |||||||
VIE, consolidated | Newrez Joint Ventures | Weighted Average | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Others’ ownership interest | 49.50% | 49.50% | 49.50% | 49.50% | ||||||
VIE, consolidated | Consumer Loan SPVs | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Others’ ownership interest | 46.50% | 46.50% | 46.50% | |||||||
VIE, consolidated | Consumer Loan SPVs | Weighted Average | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Others’ ownership interest | 46.50% | 46.50% | 46.50% | 46.50% | ||||||
|
EQUITY AND EARNINGS PER SHARE - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 23, 2023 |
Feb. 21, 2023 |
Aug. 05, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2020 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
Feb. 23, 2023 |
Dec. 15, 2022 |
|
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | ||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Number of shares issued (in shares) | 51,964,000 | 51,964,000 | |||||||||
Shares repurchased (in shares) | 0 | ||||||||||
Dividends declared on preferred stock (in dollars per share) | $ 1.76 | $ 1.76 | $ 3.51 | $ 3.51 | |||||||
Options granted (in shares) | 0 | ||||||||||
Total stock-based compensation expenses | $ 5,500,000 | ||||||||||
Vested (in shares) | 192,678 | ||||||||||
Forfeited (in shares) | 40,596 | ||||||||||
Aggregate unrecognized compensation cost | $ 34,000,000 | $ 34,000,000 | |||||||||
Weighted-average period | 1 year 3 months 18 days | ||||||||||
Warrant | |||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||
Exercised (in shares) | 25,600,000 | ||||||||||
Warrant | Share-based Payment Arrangement, Nonemployee | |||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||
Options granted (in shares) | 43,400,000 | ||||||||||
Exercised (in shares) | 22,400,000 | ||||||||||
Warrant | Share-based Payment Arrangement, Nonemployee | Exercise Price One | |||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||
Shares exercisable (in shares) | 24,600,000 | ||||||||||
Exercise price (in dollars per share) | $ 6.11 | ||||||||||
Warrant | Share-based Payment Arrangement, Nonemployee | Exercise Price Two | |||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||
Shares exercisable (in shares) | 18,900,000 | ||||||||||
Exercise price (in dollars per share) | $ 7.94 | ||||||||||
Restricted Stock Units (RSUs) | |||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||
Grant date fair value | $ 12,300,000 | ||||||||||
Vesting period | 3 years | ||||||||||
Vested (in shares) | 0 | ||||||||||
Forfeited (in shares) | 13,532 | ||||||||||
Phantom Share Units (PSUs) | |||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||
Grant date fair value | $ 23,100,000 | ||||||||||
Vesting period | 3 years | ||||||||||
Vested (in shares) | 0 | ||||||||||
Forfeited (in shares) | 27,064 | ||||||||||
RSU And PSU | |||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||
Vested (in shares) | 0 | ||||||||||
Fair value of the RSU and PSU awards forfeited | $ 400,000 | ||||||||||
Restricted Stock | |||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||
Vested (in shares) | 192,678 | ||||||||||
Vested, fair value | $ 1,700,000 | ||||||||||
Forfeited (in shares) | 0 | ||||||||||
7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||
Number of shares issued (in shares) | 6,200,000 | 6,200,000 | |||||||||
Dividends declared on preferred stock (in dollars per share) | $ 0.47 | $ 0.47 | 0.47 | $ 0.94 | 0.94 | ||||||
Preferred dividends | $ 2,900,000 | ||||||||||
7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||
Number of shares issued (in shares) | 11,261,000 | 11,261,000 | |||||||||
Dividends declared on preferred stock (in dollars per share) | $ 0.45 | 0.45 | 0.45 | $ 0.89 | 0.89 | ||||||
Preferred dividends | $ 5,000,000 | ||||||||||
6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||
Number of shares issued (in shares) | 15,903,000 | 15,903,000 | |||||||||
Dividends declared on preferred stock (in dollars per share) | $ 0.40 | 0.40 | 0.40 | $ 0.80 | 0.80 | ||||||
Preferred dividends | $ 6,300,000 | ||||||||||
7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock | |||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||
Number of shares issued (in shares) | 18,600,000 | 18,600,000 | |||||||||
Dividends declared on preferred stock (in dollars per share) | $ 0.44 | $ 0.44 | $ 0.44 | $ 0.88 | $ 0.88 | ||||||
Preferred dividends | $ 8,100,000 | ||||||||||
Common Stock | |||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||
Authorized repurchase amount | $ 200,000,000 | ||||||||||
Cashless exercise of 2020 warrants (par) | 9,300,000 | ||||||||||
Common Stock | Distribution Agreement | |||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||
Net proceeds from liquidation | $ 500,000,000 | ||||||||||
Number of shares issued (in shares) | 0 | ||||||||||
Preferred Stock | |||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||
Authorized repurchase amount | $ 100,000,000 |
EQUITY AND EARNINGS PER SHARE - Schedule of Preferred Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 23, 2023 |
Sep. 30, 2021 |
Feb. 29, 2020 |
Aug. 31, 2019 |
Jul. 31, 2019 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Class of Stock [Line Items] | ||||||||||
Number of shares issued (in shares) | 51,964 | 51,964 | ||||||||
Liquidation Preference | $ 1,299,104 | $ 1,299,104 | $ 1,299,104 | |||||||
Carrying Value | $ 1,257,254 | $ 1,257,254 | ||||||||
Dividends Declared (in dollars per share) | $ 1.76 | $ 1.76 | $ 3.51 | $ 3.51 | ||||||
Liquidation preference per share (in dollars per share) | $ 25.00 | $ 25.00 | ||||||||
7.50% Series A Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Interest rate | 7.50% | 7.50% | ||||||||
Number of shares issued (in shares) | 6,200 | 6,200 | ||||||||
Liquidation Preference | $ 155,002 | $ 155,002 | ||||||||
Issuance Discount | 3.15% | |||||||||
Carrying Value | $ 149,822 | $ 149,822 | ||||||||
Dividends Declared (in dollars per share) | $ 0.47 | $ 0.47 | 0.47 | $ 0.94 | 0.94 | |||||
7.125% Series B Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Interest rate | 7.125% | 7.125% | ||||||||
Number of shares issued (in shares) | 11,261 | 11,261 | ||||||||
Liquidation Preference | $ 281,518 | $ 281,518 | ||||||||
Issuance Discount | 3.15% | |||||||||
Carrying Value | $ 272,654 | $ 272,654 | ||||||||
Dividends Declared (in dollars per share) | 0.45 | $ 0.45 | 0.45 | $ 0.89 | 0.89 | |||||
6.375% Series C Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Interest rate | 6.375% | 6.375% | ||||||||
Number of shares issued (in shares) | 15,903 | 15,903 | ||||||||
Liquidation Preference | $ 397,584 | $ 397,584 | ||||||||
Issuance Discount | 3.15% | |||||||||
Carrying Value | $ 385,289 | $ 385,289 | ||||||||
Dividends Declared (in dollars per share) | $ 0.40 | $ 0.40 | 0.40 | $ 0.80 | 0.80 | |||||
7.00% Series D Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Interest rate | 7.00% | 7.00% | ||||||||
Number of shares issued (in shares) | 18,600 | 18,600 | ||||||||
Liquidation Preference | $ 465,000 | $ 465,000 | ||||||||
Issuance Discount | 3.15% | |||||||||
Carrying Value | $ 449,489 | $ 449,489 | ||||||||
Dividends Declared (in dollars per share) | $ 0.44 | $ 0.44 | $ 0.44 | $ 0.88 | $ 0.88 |
EQUITY AND EARNINGS PER SHARE - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 23, 2023 |
Mar. 17, 2023 |
Dec. 15, 2022 |
Sep. 22, 2022 |
Jun. 17, 2022 |
Mar. 21, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Dividends Payable [Line Items] | ||||||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.50 | ||||||
Total Amounts Distributed | $ 120.8 | $ 120.8 | $ 118.6 | $ 118.4 | $ 116.7 | $ 116.7 | ||||
Quarterly Dividend | ||||||||||
Dividends Payable [Line Items] | ||||||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 |
EQUITY AND EARNINGS PER SHARE - Schedule of Warrants (Details) - $ / shares |
6 Months Ended | |
---|---|---|
Feb. 21, 2023 |
Jun. 30, 2023 |
|
Initial | ||
Beginning balance (in shares) | 578,034 | |
Granted (in shares) | 3,645,987 | |
Ending balance (in shares) | 4,216,200 | |
Warrant | ||
Initial | ||
Exercised (in shares) | (25,600,000) | |
Share-based Payment Arrangement, Nonemployee | Warrant | ||
Initial | ||
Beginning balance (in shares) | 22,400,000 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (22,400,000) | |
Expired (in shares) | 0 | |
Ending balance (in shares) | 0 | |
Adjusted Weighted Average Exercise Price (per share) | ||
Beginning balance (in dollars per share) | $ 6.1 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 6.1 | |
Expired (in dollars per share) | $ 0 | |
Share-based Payment Arrangement, Nonemployee | Adjusted Warrant | ||
Initial | ||
Beginning balance (in shares) | 25,600,000 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (25,600,000) | |
Expired (in shares) | 0 | |
Ending balance (in shares) | 0 |
EQUITY AND EARNINGS PER SHARE - Options Outstanding by Issuance (Details) - shares |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options (in shares) | 21,473,990 | 21,476,990 |
Held by Former Manager | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options (in shares) | 21,471,990 | |
Issued to the independent directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options (in shares) | 2,000 |
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options - Period End (Details) - USD ($) $ / shares in Units, $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share price (in dollars per share) | $ 9.35 | |
Number of unexercised options (in shares) | 21,473,990 | |
Options exercisable (in shares) | 20,219,784 | |
Weighted average exercise price (in dollars per share) | $ 0 | |
Issued to the independent directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 2,000 | |
Options exercisable (in shares) | 2,000 | |
Weighted average exercise price (in dollars per share) | $ 10.70 | |
Intrinsic value of exercisable options | $ 0 | |
Former Manager | 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 1,130,916 | |
Options exercisable (in shares) | 1,130,916 | |
Weighted average exercise price (in dollars per share) | $ 12.84 | |
Intrinsic value of exercisable options | $ 0 | |
Former Manager | 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 5,320,000 | |
Options exercisable (in shares) | 5,320,000 | |
Weighted average exercise price (in dollars per share) | $ 15.57 | |
Intrinsic value of exercisable options | $ 0 | |
Former Manager | 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 6,351,000 | |
Options exercisable (in shares) | 6,351,000 | |
Weighted average exercise price (in dollars per share) | $ 14.95 | |
Intrinsic value of exercisable options | $ 0 | |
Former Manager | 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 1,619,739 | |
Options exercisable (in shares) | 1,619,739 | |
Weighted average exercise price (in dollars per share) | $ 16.30 | |
Intrinsic value of exercisable options | $ 0 | |
Former Manager | 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 7,050,335 | |
Options exercisable (in shares) | 5,796,129 | |
Weighted average exercise price (in dollars per share) | $ 9.34 | |
Intrinsic value of exercisable options | $ 30 |
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options (Details) - $ / shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Initial | ||
Beginning balance (in shares) | 21,476,990 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Expired (in shares) | (3,000) | |
Ending balance (in shares) | 21,473,990 | |
Adjusted Weighted Average Exercise Price (per share) | ||
Outstanding (in dollars per share) | $ 0 | |
Granted (in dollars per share) | $ 0 | |
Exercised (in dollars per share) | 0 | |
Expired (in dollars per share) | $ 14.24 |
EQUITY AND EARNINGS PER SHARE - Schedule of Granted, Forfeited or Vested (Details) |
6 Months Ended |
---|---|
Jun. 30, 2023
$ / shares
shares
| |
Number of Shares | |
Beginning balance (in shares) | 578,034 |
Granted (in shares) | 3,645,987 |
Accrued RSU and PSU dividend equivalents (in shares) | 225,453 |
Vested (in shares) | (192,678) |
Forfeited (in shares) | (40,596) |
Ending balance (in shares) | 4,216,200 |
Restricted Stock | |
Number of Shares | |
Beginning balance (in shares) | 578,034 |
Granted (in shares) | 0 |
Accrued RSU and PSU dividend equivalents (in shares) | 0 |
Vested (in shares) | (192,678) |
Forfeited (in shares) | 0 |
Ending balance (in shares) | 385,356 |
Grant Date Price | |
Beginning balance (in dollars per share) | $ / shares | $ 8.65 |
Granted (in dollars per share) | $ / shares | 0 |
Accrued RSU and PSU dividend equivalents (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 8.65 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | |
Restricted Stock Units (RSUs) | |
Number of Shares | |
Beginning balance (in shares) | 0 |
Granted (in shares) | 1,215,329 |
Accrued RSU and PSU dividend equivalents (in shares) | 75,151 |
Vested (in shares) | 0 |
Forfeited (in shares) | (13,532) |
Ending balance (in shares) | 1,276,948 |
Grant Date Price | |
Beginning balance (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 9.52 |
Accrued RSU and PSU dividend equivalents (in dollars per share) | $ / shares | 9.52 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 9.52 |
Ending balance (in dollars per share) | $ / shares | |
Phantom Share Units (PSUs) | |
Number of Shares | |
Beginning balance (in shares) | 0 |
Granted (in shares) | 2,430,658 |
Accrued RSU and PSU dividend equivalents (in shares) | 150,302 |
Vested (in shares) | 0 |
Forfeited (in shares) | (27,064) |
Ending balance (in shares) | 2,553,896 |
Grant Date Price | |
Beginning balance (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 9.52 |
Accrued RSU and PSU dividend equivalents (in dollars per share) | $ / shares | 9.52 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 9.52 |
Ending balance (in dollars per share) | $ / shares |
EQUITY AND EARNINGS PER SHARE - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 386,685 | $ 33,331 | $ 476,634 | $ 723,262 |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 6,889 | 14,182 | 5,589 | 19,791 |
Dividends on preferred stock | 22,395 | 22,427 | 44,790 | 44,888 |
Net income attributable to common stockholders - basic | 357,401 | (3,278) | 426,255 | 658,583 |
Net income attributable to common stockholders - diluted | $ 357,401 | $ (3,278) | $ 426,255 | $ 658,583 |
Basic weighted average shares of common stock outstanding (in shares) | 483,091,792 | 466,804,548 | 480,642,680 | 466,795,119 |
Dilutive effect of stock options, restricted stock, common stock purchase warrants, RSUs and PSUs (in shares) | 285,169 | 0 | 2,470,720 | 17,698,989 |
Diluted weighted average shares of common stock outstanding (in shares) | 483,376,961 | 466,804,548 | 483,113,400 | 484,494,108 |
Basic earnings per share attributable to common stockholders (in dollars per share) | $ 0.74 | $ (0.01) | $ 0.89 | $ 1.41 |
Diluted earnings per share attributable to common stockholders (in dollars per share) | $ 0.74 | $ (0.01) | $ 0.88 | $ 1.36 |
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
property
| |
Loss Contingencies [Line Items] | |
Estimated liability, representation and warranties | $ 55.4 |
Residential mortgage loan repurchase liability | $ 1,300.0 |
Crowne Property Acquisitions, LLC | Single Family | |
Loss Contingencies [Line Items] | |
Number of properties | property | 371 |
Aggregate purchase price | $ 95.6 |
Genesis Acquisition | |
Loss Contingencies [Line Items] | |
Committed to fund | 579.5 |
Unfunded Loan Commitment | Consumer Portfolio Segment | Consumer Loan SPVs | |
Loss Contingencies [Line Items] | |
Financing receivable | $ 195.7 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Current: | |||||
Federal | $ 0 | $ (1,199) | $ 16 | $ 0 | |
State and local | 99 | (222) | 122 | 45 | |
Total current income tax expense (benefit) | 99 | (1,421) | 138 | 45 | |
Deferred: | |||||
Federal | 48,232 | 62,330 | 34,064 | 231,566 | |
State and local | 8,199 | 11,781 | 5,522 | 43,868 | |
Total deferred income tax expense | 56,431 | 74,111 | 39,586 | 275,434 | |
Total income tax expense (benefit) | 56,530 | $ 72,690 | 39,724 | $ 275,479 | |
Deferred tax liability | $ 751,481 | $ 751,481 | $ 711,855 |
SUBSEQUENT EVENTS (Details) - Subsequent Event - Sculptor $ / shares in Units, $ in Millions |
Jul. 23, 2023
USD ($)
$ / shares
|
---|---|
Subsequent Event [Line Items] | |
Business combination, consideration transferred | $ | $ 639 |
Class A | |
Subsequent Event [Line Items] | |
Business acquisition, price per share | $ / shares | $ 11.15 |
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