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MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (AS RESTATED) (Tables)
 3 Months Ended
Mar. 31, 2024
Transfers and Servicing of Financial Assets [Abstract]  
Schedule of Activity Reated to MSRs and MSR Financing Receivables and by Type
The table below summarizes the components of Excess MSRs:
March 31, 2024December 31, 2023
Direct investments in Excess MSRs$199,363 $208,385 
Excess MSR joint ventures55,748 62,765 
Excess MSRs, at fair value$255,111 $271,150 
The following table presents activity related to the carrying value of direct investments in Excess MSRs:
Total(A)
Balance as of December 31, 2023$208,385 
Interest income2,446 
Other income— 
Proceeds from repayments(9,546)
Proceeds from sales— 
Change in fair value(1,922)
Balance as of March 31, 2024
$199,363 
(A)Underlying loans serviced by Mr. Cooper Group Inc. (“Mr. Cooper”) and SLS.
The following table summarizes activity related to MSRs and MSR financing receivables:
Balance at December 31, 2023
$8,405,938 
Purchases, net— 
Originations(A)
215,939 
Sales671 
Change in fair value due to:
    Realization of cash flows(B)
(116,839)
    Change in valuation inputs and assumptions201,014 
Balance at March 31, 2024
$8,706,723 
(A)Represents MSRs retained on the sale of originated residential mortgage loans.
(B)Based on the paydown of the underlying residential mortgage loans.
The following table summarizes MSRs and MSR financing receivables by type as of March 31, 2024:
UPB of Underlying Mortgages
Weighted Average Life (Years)(A)
Carrying Value(B)
Agency$348,953,092 7.8$5,477,522 
Non-Agency47,806,353 6.8666,958 
Ginnie Mae(C)
129,914,381 7.22,562,243 
Total/Weighted Average$526,673,826 7.5$8,706,723 
(A)Represents the weighted average expected timing of the receipt of expected cash flows for this investment.
(B)Represents fair value. As of March 31, 2024, weighted average discount rates of 8.5% (range of 7.9% – 10.8%) were used to value Rithm Capital’s MSRs and MSR financing receivables.
(C)As of March 31, 2024, Rithm Capital holds approximately $1.8 billion in residential mortgage loans subject to repurchase and the related residential mortgage loans repurchase liability on its Consolidated Balance Sheets.
Schedule of Components of Servicing Revenue, Net
The following table summarizes components of servicing revenue, net:
Three Months Ended
March 31,
2024
(As Restated)
2023
(As Restated)
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables$430,114 $439,050 
Ancillary and other fees39,777 30,607 
Servicing fee revenue, net and fees469,891 469,657 
Change in fair value due to:
Realization of cash flows(116,839)(105,691)
Change in valuation inputs and assumptions, net of realized gains (losses)201,014 (36,613)
Servicing revenue, net$554,066 $327,353 
Schedule of the Geographic Distribution of the Underlying Residential Mortgage Loans of the MSRs and MSR Financing Receivables
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 ConcentrationMarch 31, 2024December 31, 2023
California17.0 %17.1 %
Florida8.6 %8.6 %
Texas6.2 %6.2 %
New York6.0 %6.0 %
Washington5.7 %5.8 %
New Jersey4.3 %4.3 %
Virginia3.7 %3.6 %
Maryland3.4 %3.4 %
Illinois3.3 %3.3 %
Georgia3.0 %3.0 %
Other US38.8 %38.7 %
100.0 %100.0 %
Schedule of Type of Advances Included in the Servicer Advances Receivable
The table below summarizes the type of advances included in the servicer advances receivable:
March 31, 2024December 31, 2023
Principal and interest advances$592,660 $616,801 
Escrow advances (taxes and insurance advances)1,283,083 1,442,697 
Foreclosure advances775,190 767,171 
Total(A)(B)(C)
$2,650,933 $2,826,669 
(A)Includes $529.6 million and $585.0 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies.
(B)Includes $372.2 million and $405.6 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 value through a non-reimbursable advance loss assumption.
(C)Excludes $64.5 million and $66.4 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)
March 31, 2024
Servicer advance investments$352,275 $374,511 6.2 %7.0 %8.4
December 31, 2023
Servicer advance investments$362,760 $376,881 6.2 %6.6 %8.1
(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
March 31, 2024
Servicer advance investments(D)
$14,871,701 $313,271 2.1 %$270,705 84.1 %81.7 %7.3 %6.9 %
December 31, 2023
Servicer advance investments(D)
$15,499,559 $320,630 2.1 %$278,845 84.1 %81.9 %7.5 %6.9 %
(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:
March 31, 2024December 31, 2023
Principal and interest advances$54,452 $57,909 
Escrow advances (taxes and insurance advances)145,846 149,346 
Foreclosure advances112,973 113,375 
Total$313,271 $320,630 
Schedule of Servicer Advances Provision Activity
The following table summarizes servicer advances provision activity during the quarter:
Balance at December 31, 2023$93,681 
Provision7,217 
Write-offs(7,654)
Balance at March 31, 2024$93,244