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MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (AS RESTATED) (Tables)
 12 Months Ended
Dec. 31, 2023
Transfers and Servicing [Abstract]  
Schedule of Activity Related to the Carrying Value of Investments in Excess MSRs
The table below summarizes the components of Excess MSRs:
Year Ended December 31,
20232022
Direct investments in Excess MSRs$208,385 $249,366 
Excess MSR joint ventures62,765 72,437 
Excess mortgage servicing rights assets, at fair value$271,150 $321,803 
The following table presents activity related to the carrying value of direct investments in Excess MSRs:
Servicer
Total(A)
Balance as of December 31, 2021
259,198 
Interest income38,035 
Other income42 
Proceeds from repayments(43,950)
Proceeds from sales(997)
Change in fair value(2,962)
Balance as of December 31, 2022
249,366 
Interest income18,310 
Other income267 
Proceeds from repayments(41,552)
Proceeds from sales(2,779)
Change in fair value(15,227)
Balance as of December 31, 2023
$208,385 
(A)Underlying loans serviced by Mr. Cooper and SLS.
The following table summarizes activity related to MSRs and MSR financing receivables:
Total
Balance as of December 31, 2021$6,858,803 
Purchases, net(A)
(967)
Originations(B)
1,222,742 
Proceeds from sales(8,866)
Change in fair value due to:
Realization of cash flows(D)
(631,120)
Change in valuation inputs and assumptions1,448,811 
Balance as of December 31, 2022
$8,889,403 
Originations(B)
786,655 
Proceeds from sales(C)
(704,436)
Change in fair value due to:
Realization of cash flows(D)
(518,978)
Change in valuation inputs and assumptions(46,706)
Balance as of December 31, 2023
$8,405,938 
(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 $91.4 billion during the year ended December 31, 2023. In connection with these sales, the Company recorded a gain of approximately $5.2 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 is a summary of MSRs and MSR financing receivables by type as of December 31, 2023 and 2022:
UPB of Underlying Mortgages
Weighted Average Life (Years)(A)
Carrying Value(B)
2023
Agency$351,642,337 7.7$5,333,013 
Non-Agency48,928,545 6.8678,913 
Ginnie Mae(C)
127,863,627 7.12,394,012 
Total$528,434,509 7.5$8,405,938 
2022
Agency$364,879,106 7.2$6,022,266 
Non-Agency53,881,903 4.9794,459 
Ginnie Mae(C)
121,136,315 6.72,072,678 
Total / Weighted Average$539,897,324 6.9$8,889,403 
(A)Represents the weighted average expected timing of the receipt of expected cash flows for this investment.
(B)Represents fair value. As of December 31, 2023 and 2022, weighted average discount rates of 8.5% (range of 7.9% – 10.8%) and 8.3% (range of 7.6% – 9.8%), respectively, were used to value Rithm Capital’s MSRs and MSR financing receivables, respectively.
(C)As of December 31, 2023 and 2022, Rithm Capital holds approximately $1.8 billion and $1.2 billion in residential mortgage loans subject to repurchase and the related residential mortgage loans repurchase liability on its Consolidated Balance Sheets.
Fees Earned in Exchange for Servicing Financial Assets
The following table summarizes components of servicing revenue, net:
Year Ended December 31,
2023
(As Restated)		2022
(As Restated)		2021
(As Restated)
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables$1,735,060 $1,698,977 $1,445,778 
Ancillary and other fees124,297 132,377 113,045 
Servicing fee revenue, net and fees1,859,357 1,831,354 1,558,823 
Change in fair value due to:
Realization of cash flows(518,978)(631,120)(1,192,646)
Change in valuation inputs and assumptions, net of realized gains (losses)(46,706)1,448,811 680,088 
Change in fair value of derivative instruments— (11,316)(30,481)
Gain (loss) on settlement of derivative instruments— (79,041)(34,724)
Servicing revenue, net$1,293,673 $2,558,688 $981,060 
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:
Percentage of Total Outstanding Unpaid Principal Amount
State ConcentrationDecember 31, 2023December 31, 2022
California17.1 %17.4 %
Florida8.6 %8.6 %
Texas6.2 %6.2 %
New York6.0 %6.0 %
Washington5.8 %5.9 %
New Jersey4.3 %4.4 %
Virginia3.6 %3.6 %
Maryland3.4 %3.4 %
Illinois3.3 %3.4 %
Georgia3.0 %2.9 %
Other U.S.38.7 %38.2 %
100.0 %100.0 %
Schedule of Investment in Servicer Advances
The table below summarizes the type of advances included in the servicer advances receivable:
December 31,
20232022
Principal and interest advances$616,801 $664,495 
Escrow advances (taxes and insurance advances)1,442,697 1,426,409 
Foreclosure advances767,171 754,073 
Total(A)(B)(C)
$2,826,669 $2,844,977 
(A)Includes $585.0 million and $526.5 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies.
(B)Includes $405.6 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 $66.4 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:
Amortized Cost Basis
Carrying Value(A)
Weighted Average Discount RateWeighted Average Yield
Weighted Average Life (Years)(B)
December 31, 2023
Servicer advance investments$362,760 $376,881 6.2 %6.6 %8.1
December 31, 2022
Servicer advance investments$392,749 $398,820 5.7 %5.6 %8.4
(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:
UPB of Underlying Residential Mortgage LoansOutstanding Servicer AdvancesServicer Advances to UPB of Underlying Residential Mortgage LoansFace Amount of Secured Notes and Bonds Payable
Loan-to-Value (“LTV”)(A)
Cost of Funds(C)
Gross
Net(B)
GrossNet
December 31, 2023
Servicer advance investments(D)
$15,499,559 $320,630 2.1 %$278,845 84.1 %81.9 %7.5 %6.9 %
December 31, 2022
Servicer advance investments(D)
$17,033,753 $341,628 2.0 %$319,276 90.2 %88.3 %6.5 %5.9 %
(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:
December 31,
20232022
Principal and interest advances$57,909 $66,892 
Escrow advances (taxes and insurance advances)149,346 155,438 
Foreclosure advances113,375 119,298 
Total$320,630 $341,628 
Schedule of Servicer Advances Reserve
The following table summarizes servicer advances reserve:
Balance as of December 31, 2021$32,122 
Provision48,392 
Write-offs(15,086)
Balance as of December 31, 2022$65,428 
Provision63,016 
Write-offs(34,763)
Balance as of December 31, 2023$93,681