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EXCESS MORTGAGE SERVICING RIGHTS (Tables)

9 Months Ended

Sep. 30, 2025

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
Sales	2,605
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-Agency	68,078,160		5.6	784,367
Ginnie Mae	147,592,847		6.1	3,339,950
Total / Weighted Average	$	596,093,013	6.2	$	10,389,766
December 31, 2024
GSE	$	383,014,320	6.5	$	6,413,199
Non-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 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 income	21,150
Other gains	598
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 Direct Investments in Excess MSRs

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


	September 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(C)
Total	$	49,260,027	65.0% – 80.0% (68.6%)	20.0% – 35.0% (31.4%)	5.8	$	290,710	$	334,668	$	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 September 30, 2025 and December 31, 2024 (Note 14) on $12.2 billion and $13.3 billion UPB, respectively, underlying these Excess MSRs.