EXCESS MORTGAGE SERVICING RIGHTS (Tables)

6 Months Ended

Jun. 30, 2025

Transfers and Servicing [Abstract]

Schedule of Activity Related to the Carrying Value of Investments in Excess MSRs

The following table summarizes activity related to MSRs and MSR financing receivables:

Balance at December 31, 2024	$	10,321,671
Originations(A)	768,969
Sales	2,524
Change in Fair Value due to:
Realization of cash flows(B)	(326,043)
Change in valuation inputs and assumptions	(407,058)
Balance at June 30, 2025	$	10,360,063

(A)Represents MSRs retained on the sale of originated residential mortgage loans. Includes $72.7 million of MSRs capitalized through co-issue with third parties for the six months ended June 30, 2025.

(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, 2025 and December 31, 2024:

	UPB of Underlying Mortgages		Weighted Average Life (Years)(A)	Carrying Value(B)
June 30, 2025
GSE	$	380,862,890	6.5	$	6,301,384
Non-Agency	68,547,361		5.7	795,130
Ginnie Mae	143,313,085		6.3	3,263,549
Total / Weighted Average	$	592,723,336	6.4	$	10,360,063
December 31, 2024
GSE	$	383,014,320	6.5	$	6,413,199
Non-Agency	70,022,636		5.4	836,408
Ginnie Mae	137,177,395		6.4	3,072,064
Total / Weighted Average	$	590,214,351	6.4	$	10,321,671

(A)Represents the weighted average expected timing of the receipt of expected cash flows for this investment.

(B)Represents the fair value for this investment. As of June 30, 2025 and December 31, 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.

The following table presents activity related to the investments in Excess MSRs measured at fair value:

Balance at December 31, 2024	$	369,162
Interest income	13,299
Proceeds from repayments	(35,134)
Proceeds from sales	(45)
Change in fair value	(1,605)
Balance at June 30, 2025	$	345,677

Schedule of Direct Investments in Excess MSRs

The following summarizes Rithm Capital’s investments in Excess MSRs:

	June 30, 2025									December 31, 2024
	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)	Mr. Cooper
Total	$	50,719,526	65.0% – 80.0% (68.6%)	20.0% – 35.0% (31.4%)	5.9	$	300,082	$	345,677	$	369,162

(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 also invested in related servicer advance investments, including the base fee component of the related MSR as of June 30, 2025 and December 31, 2024 (Note 14) on $12.6 billion and $13.3 billion UPB, respectively, underlying these Excess MSRs.

The following summarizes the changes in fair value of Excess MSRs investments:

	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Original and recaptured pools	$	(690)	$	21,352	$	(1,605)	$	19,430