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MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (Tables)
 9 Months Ended
Sep. 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)
1,199,933 
Sales2,605 
Change in Fair Value due to:
Realization of cash flows(B)
(516,406)
Change in valuation inputs and assumptions(618,037)
Balance at September 30, 2025$10,389,766 
(A)Represents MSRs retained on the sale of originated residential mortgage loans. Includes $143.5 million of MSRs capitalized through co-issue with third parties for the nine months ended September 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 September 30, 2025 and December 31, 2024:
UPB of Underlying Mortgages
Weighted Average Life (Years)(A)
Carrying Value(B)
September 30, 2025
GSE$380,422,006 6.4$6,265,449 
Non-Agency68,078,160 5.6784,367 
Ginnie Mae147,592,847 6.13,339,950 
Total / Weighted Average$596,093,013 6.2$10,389,766 
December 31, 2024
GSE$383,014,320 6.5$6,413,199 
Non-Agency70,022,636 5.4836,408 
Ginnie Mae137,177,395 6.43,072,064 
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 September 30, 2025 and December 31, 2024, weighted average discount rates of 8.6% (range of 8.4% – 10.3%) and 8.9% (range of 8.7% - 10.3%), respectively, 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 income21,150 
Other gains598 
Proceeds from repayments(51,895)
Proceeds from sales(1,105)
Change in fair value(3,242)
Balance at September 30, 2025$334,668 
Schedule of Fees Earned in Exchange for Servicing Financial Assets
The following table summarizes components of servicing revenue, net:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2025202420252024
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables$532,052 $454,757 $1,577,233 $1,338,860 
Ancillary and other fees47,229 38,414 147,666 123,180 
Servicing fee revenue, net and fees579,281 493,171 1,724,899 1,462,040 
Change in Fair Value due to:
Realization of cash flows(A)
(189,881)(139,784)(513,452)(421,761)
Change in valuation inputs and assumptions, net of realized gains (losses)(B)
(219,555)(607,551)(623,387)(309,297)
Gains on MSR economic hedges145,085 379,924 384,105 240,681 
Servicing Revenue, Net$314,930 $125,760 $972,165 $971,663 
(A)Net of $0.5 million and $1.3 million of realization of cash flows related to MSR financing liability for the three months ended September 30, 2025 and 2024, respectively, and $3.0 million and $3.5 million for the nine months ended September 30, 2025 and 2024, respectively (Note 12).
(B)Net of $(8.6) million and $7.3 million of change in valuation inputs and assumptions related to MSR financing liability for the three months ended September 30, 2025 and 2024, respectively, and $(5.4) million and $14.1 million for the nine months ended September 30, 2025 and 2024, respectively (Note 12).
Schedule 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 residential mortgage loans underlying the MSRs and MSR financing receivables:
Percentage of Total Outstanding Unpaid Principal Amount
State ConcentrationSeptember 30, 2025December 31, 2024
California16.0 %16.5 %
Florida8.1 %8.2 %
Texas6.7 %6.6 %
New York5.7 %5.7 %
Washington5.1 %5.2 %
New Jersey4.0 %4.1 %
Virginia3.8 %3.7 %
Maryland3.4 %3.4 %
Illinois3.2 %3.3 %
Georgia3.1 %3.1 %
Other U.S.40.9 %40.2 %
100.0 %100.0 %
Schedule of Investment in Servicer Advances
The table below summarizes the type of advances included in the servicer advances receivable:
September 30, 2025December 31, 2024
Principal and interest advances$583,741 $640,723 
Escrow advances (taxes and insurance advances)1,339,713 1,733,426 
Foreclosure advances848,976 950,092 
Gross advance balance(A)(B)(C)
2,772,430 3,324,241 
Reserves, impairment, unamortized discount, net of recovery accruals(125,389)(125,320)
Total Servicer Advances Receivable$2,647,041 $3,198,921 
(A)Includes $527.5 million and $673.7 million of servicer advances receivable related to GSE MSRs, respectively, recoverable either from the borrower or the Agencies.
(B)Includes $450.5 million and $529.3 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)Expected losses for advances associated with 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 base fee component of the related MSRs:
Amortized Cost Basis
Carrying Value(A)
Weighted Average Discount RateWeighted Average Yield
Weighted Average Life (Years)(B)
September 30, 2025
Servicer advance investments$290,757 $302,278 6.5 %6.9 %8.0
December 31, 2024
Servicer advance investments$327,471 $339,646 6.5 %6.9 %7.6
(A)Represents the fair value of the servicer advance investments, including the base 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
LTV(A)
Cost of Funds(C)
Gross
Net(B)
GrossNet
September 30, 2025
Servicer advance investments(D)
$12,224,189 $264,921 2.2 %$231,018 84.5 %82.5 %6.2 %5.6 %
December 31, 2024
Servicer advance investments(D)
$13,316,828 $298,945 2.2 %$258,183 85.0 %82.9 %6.3 %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:
September 30, 2025December 31, 2024
Principal and interest advances$40,712 $51,135 
Escrow advances (taxes and insurance advances)118,558 137,072 
Foreclosure advances105,651 110,738 
Total$264,921 $298,945 
Schedule of Servicer Advances Reserve
The following table summarizes servicer advances provision activity during the period:
Balance at December 31, 2024$121,396 
Provision38,644 
Write-offs(42,475)
Balance at September 30, 2025$117,565