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MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (Tables)
 6 Months Ended
Jun. 30, 2024
Transfers and Servicing of Financial Assets [Abstract]  
Schedule of Activity Reated to MSRs and MSR Financing Receivables and by Type
The following table summarizes activity related to MSRs and MSR financing receivables:
Balance as of December 31, 2023
$8,405,938 
Purchases, net— 
Transfers— 
Acquisition697,494 
Originations(A)
580,244 
Sales2,404 
Change in fair value due to:
    Realization of cash flows(B)
(284,189)
    Change in valuation inputs and assumptions291,440 
Balance as of June 30, 2024
$9,693,331 
(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 June 30, 2024:
UPB of Underlying Mortgages
Weighted Average Life (Years)(A)
Carrying Value(B)
Agency$381,516,738 6.6$6,079,335 
Non-Agency72,106,898 5.4885,053 
Ginnie Mae(C)
133,419,752 6.32,728,943 
Total/Weighted Average$587,043,388 6.4$9,693,331 
(A)Represents the weighted average expected timing of the receipt of expected cash flows for this investment.
(B)Represents fair value. As of June 30, 2024, weighted average discount rates of 8.9% (range of 8.7% – 10.3%) were used to value Rithm Capital’s MSRs and MSR financing receivables.
(C)As of June 30, 2024, Rithm Capital holds approximately $1.9 billion in residential mortgage loans subject to repurchase and the related residential mortgage loans repurchase liability on its Consolidated Balance Sheets.
The following table presents activity related to the carrying value of investments in Excess MSRs:
Total(A)
Balance as of December 31, 2023
$208,385 
Purchases122,887 
Interest income10,522 
Other income(656)
Proceeds from repayments(19,122)
Proceeds from sales— 
Change in fair value19,430 
Acquisition of assets from Fortress Excess MSR JV55,192 
Reclassification of SLS serviced Excess MSRs to Full MSRs(1,032)
Balance as of June 30, 2024
$395,606 
(A)Underlying loans serviced by Mr. Cooper Group Inc. (“Mr. Cooper”) and SLS (Excess MSRs with underlying loans serviced by SLS were reclassified to full MSRs upon the acquisition of Computershare on May 1, 2024).
Schedule of Components of Servicing Revenue, Net
The following table summarizes components of servicing revenue, net:
Three Months Ended
June 30,		Six Months Ended
June 30,
20242023
(As Restated)		20242023
(As Restated)
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables$453,989 $432,750 $884,103 $871,800 
Ancillary and other fees44,989 32,597 84,766 63,204 
Servicing fee revenue, net and fees498,978 465,347 968,869 935,004 
Change in fair value due to:
Realization of cash flows(A)
(165,138)(139,410)(281,977)(245,101)
Change in valuation inputs and assumptions, net of realized gains (losses)(B)
97,240 161,442 298,254 124,829 
Servicing revenue, net$431,080 $487,379 $985,146 $814,732 
(A)Net of $2.2 million of realization of cash flows related to excess spread financing (Note 12).
(B)Net of $6.8 million of change in valuation inputs and assumptions related to excess spread financing (Note 12).
Schedule of 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 ConcentrationJune 30, 2024December 31, 2023
California16.7 %17.1 %
Florida8.4 %8.6 %
Texas6.5 %6.2 %
New York5.8 %6.0 %
Washington5.3 %5.8 %
New Jersey4.1 %4.3 %
Virginia3.6 %3.6 %
Maryland3.4 %3.4 %
Illinois3.3 %3.3 %
Georgia3.1 %3.0 %
Other US39.8 %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:
June 30, 2024December 31, 2023
Principal and interest advances$624,563 $616,801 
Escrow advances (taxes and insurance advances)1,358,320 1,442,697 
Foreclosure advances891,268 767,171 
Gross advance balance(A)(B)
2,874,151 2,826,669 
Reserves, impairment, unamortized discount, net of recovery accruals(99,641)(66,419)
Total servicer advances receivable$2,774,510 $2,760,250 
(A)Includes $550.8 million and $585.0 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies.
(B)Includes $367.8 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.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)
June 30, 2024
Servicer advance investments$336,131 $357,220 6.2 %7.0 %8.3
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
June 30, 2024
Servicer advance investments(D)
$13,974,237 $302,282 2.2 %$262,069 84.7 %82.5 %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:
June 30, 2024December 31, 2023
Principal and interest advances$52,686 $57,909 
Escrow advances (taxes and insurance advances)137,726 149,346 
Foreclosure advances111,870 113,375 
Total$302,282 $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 
Provision20,652 
Write-offs(14,793)
Balance at June 30, 2024$99,540