| Rithm Capital Corp. | ||
| (Exact name of registrant as specified in its charter) | ||
| Delaware | 45-3449660 | |||||||||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
| 799 Broadway | New York | NY | 10003 | |||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
| (212) | 850-7770 | ||||
| (Registrant’s telephone number, including area code) | |||||
| Title of each class: | Name of each exchange on which registered: | |||||||
| Common Stock, $0.01 par value per share | RITM | New York Stock Exchange | ||||||
| 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | RITM PR A | New York Stock Exchange | ||||||
| 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | RITM PR B | New York Stock Exchange | ||||||
| 6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | RITM PR C | New York Stock Exchange | ||||||
| 7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock | RITM PR D | New York Stock Exchange | ||||||
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | ||||||||||||
Smaller reporting company | ☐ | Emerging growth company | ☐ | ||||||||||||||
| PAGE | |||||
| Part I. Financial Information | |||||
| Part II. Other Information | |||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (dollars in thousands, except share data) | ||
| June 30, 2022 (Unaudited) | December 31, 2021 | ||||||||||
| Assets | |||||||||||
| Excess mortgage servicing rights, at fair value | $ | 337,050 | $ | 344,947 | |||||||
Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value(A) | 8,626,409 | 6,858,803 | |||||||||
Servicer advance investments, at fair value(A) | 379,901 | 421,807 | |||||||||
| Real estate and other securities | 7,988,802 | 9,396,539 | |||||||||
Residential loans and variable interest entity consumer loans held-for-investment, at fair value(A) | 934,479 | 1,077,224 | |||||||||
Residential mortgage loans, held-for-sale ($5,293,936 and $11,214,924 at fair value, respectively) | 5,410,989 | 11,347,845 | |||||||||
| Single-family rental properties, held-for-investment | 927,227 | 579,607 | |||||||||
Mortgage loans receivable, at fair value(A) | 1,756,079 | 1,515,762 | |||||||||
Residential mortgage loans subject to repurchase(B) | 1,758,509 | 1,787,314 | |||||||||
Cash and cash equivalents(A) | 1,510,848 | 1,332,575 | |||||||||
Restricted cash(A) | 433,960 | 195,867 | |||||||||
Servicer advances receivable(A) | 2,560,696 | 2,855,148 | |||||||||
Other assets(A) | 1,928,898 | 2,028,752 | |||||||||
| $ | 34,553,847 | $ | 39,742,190 | ||||||||
| Liabilities and Equity | |||||||||||
| Liabilities | |||||||||||
Secured financing agreements(A) | $ | 13,967,234 | $ | 20,592,884 | |||||||
Secured notes and bonds payable ($380,662 and $511,107 at fair value, respectively)(A) | 9,322,026 | 8,644,810 | |||||||||
Residential mortgage loan repurchase liability(B) | 1,758,509 | 1,787,314 | |||||||||
| Unsecured senior notes, net of issuance costs | 544,167 | 543,293 | |||||||||
| Due to affiliates | — | 17,819 | |||||||||
| Dividends payable | 127,913 | 127,922 | |||||||||
Accrued expenses and other liabilities(A) | 1,771,000 | 1,358,768 | |||||||||
| 27,490,849 | 33,072,810 | ||||||||||
| Commitments and Contingencies | |||||||||||
| Equity | |||||||||||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 52,038,000 and 52,210,000 issued and outstanding, $1,300,959 and $1,305,250 aggregate liquidation preference, respectively | 1,258,667 | 1,262,481 | |||||||||
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 466,856,753 and 466,758,266 issued and outstanding, respectively | 4,670 | 4,669 | |||||||||
| Additional paid-in capital | 6,060,740 | 6,059,671 | |||||||||
| Retained earnings (accumulated deficit) | (387,870) | (813,042) | |||||||||
| Accumulated other comprehensive income | 57,620 | 90,253 | |||||||||
| Total Rithm Capital stockholders’ equity | 6,993,827 | 6,604,032 | |||||||||
Noncontrolling interests in equity of consolidated subsidiaries(A) | 69,171 | 65,348 | |||||||||
| Total equity | 7,062,998 | 6,669,380 | |||||||||
| $ | 34,553,847 | $ | 39,742,190 | ||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||
| (dollars in thousands, except share and per share data) | ||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | 469,478 | $ | 356,176 | $ | 925,878 | $ | 704,460 | |||||||||||||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(180,265), $(297,778), $(380,590), $(637,448), respectively) | 336,563 | (417,983) | 911,956 | (225,709) | |||||||||||||||||||
| Servicing revenue, net | 806,041 | (61,807) | 1,837,834 | 478,751 | |||||||||||||||||||
| Interest income | 211,648 | 201,762 | 437,061 | 402,709 | |||||||||||||||||||
| Gain on originated residential mortgage loans, held-for-sale, net | 304,791 | 286,885 | 776,787 | 690,333 | |||||||||||||||||||
| 1,322,480 | 426,840 | 3,051,682 | 1,571,793 | ||||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Interest expense and warehouse line fees | 150,829 | 106,539 | 289,662 | 225,444 | |||||||||||||||||||
| General and administrative | 225,271 | 172,986 | 471,509 | 336,847 | |||||||||||||||||||
| Compensation and benefits | 339,658 | 194,730 | 732,277 | 393,374 | |||||||||||||||||||
| Management fee to affiliate | 20,985 | 23,677 | 46,174 | 45,839 | |||||||||||||||||||
| Termination fee to affiliate | 400,000 | — | 400,000 | — | |||||||||||||||||||
| 1,136,743 | 497,932 | 1,939,622 | 1,001,504 | ||||||||||||||||||||
| Other Income (Loss) | |||||||||||||||||||||||
| Change in fair value of investments, net | (234,040) | 229,900 | (381,159) | (9,888) | |||||||||||||||||||
| Gain (loss) on settlement of investments, net | 94,936 | (78,611) | 156,120 | (90,603) | |||||||||||||||||||
| Other income (loss), net | 59,388 | 64,452 | 111,720 | 74,446 | |||||||||||||||||||
| (79,716) | 215,741 | (113,319) | (26,045) | ||||||||||||||||||||
| Income Before Income Taxes | 106,021 | 144,649 | 998,741 | 544,244 | |||||||||||||||||||
| Income tax expense (benefit) | 72,690 | (1,077) | 275,479 | 97,182 | |||||||||||||||||||
| Net Income | $ | 33,331 | $ | 145,726 | $ | 723,262 | $ | 447,062 | |||||||||||||||
| Noncontrolling interests in income of consolidated subsidiaries | 14,182 | 10,053 | 19,791 | 19,447 | |||||||||||||||||||
| Dividends on preferred stock | 22,427 | 14,358 | 44,888 | 28,716 | |||||||||||||||||||
| Net Income (Loss) Attributable to Common Stockholders | $ | (3,278) | $ | 121,315 | $ | 658,583 | $ | 398,899 | |||||||||||||||
| Net Income (Loss) Per Share of Common Stock | |||||||||||||||||||||||
| Basic | $ | (0.01) | $ | 0.27 | $ | 1.41 | $ | 0.92 | |||||||||||||||
| Diluted | $ | (0.01) | $ | 0.26 | $ | 1.36 | $ | 0.88 | |||||||||||||||
| Weighted Average Number of Shares of Common Stock Outstanding | |||||||||||||||||||||||
| Basic | 466,804,548 | 456,312,486 | 466,795,119 | 435,668,683 | |||||||||||||||||||
| Diluted | 466,804,548 | 472,729,245 | 484,494,108 | 451,229,665 | |||||||||||||||||||
| Dividends Declared per Share of Common Stock | $ | 0.25 | $ | 0.20 | $ | 0.50 | $ | 0.40 | |||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) | ||
| (dollars in thousands) | ||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Net income | $ | 33,331 | $ | 145,726 | $ | 723,262 | $ | 447,062 | |||||||||||||||
| Other comprehensive income, net of tax: | |||||||||||||||||||||||
| Unrealized gain (loss) on available-for-sale securities, net | (9,575) | 9,949 | (32,633) | 21,139 | |||||||||||||||||||
| Reclassification of realized (gain) loss on available-for-sale securities, net into net income | — | (823) | — | (5,325) | |||||||||||||||||||
| Comprehensive income | 23,756 | 154,852 | 690,629 | 462,876 | |||||||||||||||||||
| Comprehensive income attributable to noncontrolling interests | 14,182 | 10,053 | 19,791 | 19,447 | |||||||||||||||||||
| Dividends on preferred stock | 22,427 | 14,358 | 44,888 | 28,716 | |||||||||||||||||||
| Comprehensive income (loss) attributable to common stockholders | $ | (12,853) | $ | 130,441 | $ | 625,950 | $ | 414,713 | |||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) | ||
FOR THE THREE MONTHS ENDED JUNE 30, 2022 AND 2021 | ||
| (dollars in thousands, except share and per share data) | ||
| Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Total Rithm Capital Stockholders’ Equity | Noncontrolling Interests in Equity of Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at March 31, 2022 | 52,038,342 | $ | 1,258,667 | 466,786,526 | $ | 4,669 | $ | 6,059,981 | $ | (267,878) | $ | 67,195 | $ | 7,122,634 | $ | 62,078 | $ | 7,184,712 | |||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock, $0.25 per share | — | — | — | — | — | (116,714) | — | (116,714) | — | (116,714) | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | (22,427) | — | (22,427) | — | (22,427) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Capital distributions | — | — | — | — | — | — | — | — | (7,089) | (7,089) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Director share grants | — | — | 70,227 | 1 | 759 | — | — | 760 | — | 760 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | 19,149 | — | 19,149 | 14,182 | 33,331 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized gain (loss) on available-for-sale securities, net | — | — | — | — | — | — | (9,575) | (9,575) | — | (9,575) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income (loss) | 9,574 | 14,182 | 23,756 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2022 | 52,038,342 | $ | 1,258,667 | 466,856,753 | $ | 4,670 | $ | 6,060,740 | $ | (387,870) | $ | 57,620 | $ | 6,993,827 | $ | 69,171 | $ | 7,062,998 | |||||||||||||||||||||||||||||||||||||||||
| Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Total Rithm Capital Stockholders’ Equity | Noncontrolling Interests in Equity of Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at March 31, 2021 | 33,610,000 | $ | 812,992 | 414,797,263 | $ | 4,149 | $ | 5,547,607 | $ | (914,304) | $ | 72,385 | $ | 5,522,829 | $ | 98,984 | $ | 5,621,813 | |||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock, $0.20 per share | — | — | — | — | — | (93,316) | — | (93,316) | — | (93,316) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared on preferred stock | — | — | — | — | — | (14,358) | — | (14,358) | — | (14,358) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Capital distributions | — | — | — | — | — | — | — | — | (14,937) | (14,937) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock | — | — | 51,725,000 | 517 | 510,970 | — | — | 511,487 | — | 511,487 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Director share grants | — | — | 57,657 | 1 | 609 | — | — | 610 | — | 610 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | 135,673 | — | 135,673 | 10,053 | 145,726 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized gain (loss) on available-for-sale securities, net | — | — | — | — | — | — | 9,949 | 9,949 | — | 9,949 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Reclassification of realized (gain) loss on available-for-sale securities, net into net income | — | — | — | — | — | — | (823) | (823) | — | (823) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income (loss) | 144,799 | 10,053 | 154,852 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2021 | 33,610,000 | $ | 812,992 | 466,579,920 | $ | 4,667 | $ | 6,059,186 | $ | (886,305) | $ | 81,511 | $ | 6,072,051 | $ | 94,100 | $ | 6,166,151 | |||||||||||||||||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) | ||
FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021 | ||
| (dollars in thousands, except share and per share data) | ||
| Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Total Rithm Capital Stockholders’ Equity | Noncontrolling Interests in Equity of Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2021 | 52,210,000 | $ | 1,262,481 | 466,758,266 | $ | 4,669 | $ | 6,059,671 | $ | (813,042) | $ | 90,253 | $ | 6,604,032 | $ | 65,348 | $ | 6,669,380 | |||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock, $0.50 per share | — | — | — | — | — | (233,411) | — | (233,411) | — | (233,411) | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | (44,888) | — | (44,888) | — | (44,888) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Capital distributions | — | — | — | — | — | — | — | — | (15,968) | (15,968) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock repurchase | (171,658) | (3,814) | — | — | — | — | (3,814) | — | (3,814) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Director share grants | — | — | 98,487 | 1 | 1,069 | — | — | 1,070 | — | 1,070 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | 703,471 | — | 703,471 | 19,791 | 723,262 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized gain (loss) on available-for-sale securities, net | — | — | — | — | — | — | (32,633) | (32,633) | — | (32,633) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income (loss) | 670,838 | 19,791 | 690,629 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2022 | 52,038,342 | $ | 1,258,667 | 466,856,753 | $ | 4,670 | $ | 6,060,740 | $ | (387,870) | $ | 57,620 | $ | 6,993,827 | $ | 69,171 | $ | 7,062,998 | |||||||||||||||||||||||||||||||||||||||||
| Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Total Rithm Capital Stockholders’ Equity | Noncontrolling Interests in Equity of Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2020 | 33,610,000 | $ | 812,992 | 414,744,518 | $ | 4,148 | $ | 5,547,108 | $ | (1,108,929) | $ | 65,697 | $ | 5,321,016 | $ | 108,668 | $ | 5,429,684 | |||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock, $0.40 per share | — | — | — | — | — | (176,275) | — | (176,275) | — | (176,275) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared on preferred stock | — | — | — | — | — | (28,716) | — | (28,716) | — | (28,716) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Capital distributions | — | — | — | — | — | — | — | — | (34,015) | (34,015) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock | — | — | 51,725,000 | 517 | 510,970 | — | — | 511,487 | — | 511,487 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Director share grants | — | — | 110,402 | 2 | 1,108 | — | — | 1,110 | — | 1,110 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | 427,615 | — | 427,615 | 19,447 | 447,062 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized gain (loss) on available-for-sale securities, net | — | — | — | — | — | — | 21,139 | 21,139 | — | 21,139 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Reclassification of realized (gain) loss on available-for-sale securities, net into net income | — | — | — | — | — | — | (5,325) | (5,325) | — | (5,325) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income (loss) | 443,429 | 19,447 | 462,876 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2021 | 33,610,000 | $ | 812,992 | 466,579,920 | $ | 4,667 | $ | 6,059,186 | $ | (886,305) | $ | 81,511 | $ | 6,072,051 | $ | 94,100 | $ | 6,166,151 | |||||||||||||||||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||
| (dollars in thousands) | ||
| Six Months Ended June 30, | ||||||||||||||
| 2022 | 2021 | |||||||||||||
| Cash Flows From Operating Activities | ||||||||||||||
| Net income (loss) | $ | 723,262 | $ | 447,062 | ||||||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||
| Change in fair value of investments, net | 381,159 | 9,888 | ||||||||||||
| Change in fair value of equity investments | 9,111 | 4,617 | ||||||||||||
| Change in fair value of secured notes and bonds payable | (35,151) | (1,216) | ||||||||||||
| (Gain) loss on settlement of investments, net | (156,120) | 90,603 | ||||||||||||
| (Gain) loss on sale of originated residential mortgage loans, held-for-sale, net | (776,787) | (690,333) | ||||||||||||
| (Gain) loss on transfer of loans to REO | (4,039) | (4,111) | ||||||||||||
| Accretion and other amortization | (34,731) | (31,617) | ||||||||||||
| Provision (reversal) for credit losses on securities, loans and real estate owned | 7,528 | (54,015) | ||||||||||||
| Non-cash portions of servicing revenue, net | (981,581) | 172,721 | ||||||||||||
| Deferred tax provision | 275,458 | 92,195 | ||||||||||||
| Mortgage loans originated and purchased for sale, net of fees | (50,321,003) | (54,274,103) | ||||||||||||
| Sales proceeds and loan repayment proceeds for residential mortgage loans, held-for-sale | 55,755,342 | 52,783,316 | ||||||||||||
| Interest received from servicer advance investments, RMBS, loans and other | 31,394 | 74,776 | ||||||||||||
| Changes in: | ||||||||||||||
| Servicer advances receivable, net | 294,452 | 253,577 | ||||||||||||
| Other assets | 72,498 | 224,180 | ||||||||||||
| Due to affiliates | (17,819) | (768) | ||||||||||||
| Accrued expenses and other liabilities | 132,325 | (111,133) | ||||||||||||
| Net cash provided by (used in) operating activities | 5,355,298 | (1,014,361) | ||||||||||||
| Cash Flows From Investing Activities | ||||||||||||||
| Purchase of servicer advance investments | (500,000) | (667,080) | ||||||||||||
| Purchase of MSRs, MSR financing receivables and servicer advances receivable | (603) | (11,409) | ||||||||||||
| Purchase of RMBS | (1,052,724) | (6,098,841) | ||||||||||||
| Purchase of residential mortgage loans | (7,182) | — | ||||||||||||
| Purchase of SFR properties, real estate owned and other assets | (355,002) | (453,878) | ||||||||||||
| Draws on revolving consumer loans | (14,350) | (13,544) | ||||||||||||
| Net settlement of derivatives | 279,306 | (85,206) | ||||||||||||
| Return of investments in Excess MSRs | 7,873 | 28,002 | ||||||||||||
| Principal repayments from servicer advance investments | 541,868 | 698,476 | ||||||||||||
| Principal repayments from RMBS | 687,624 | 1,291,429 | ||||||||||||
| Principal repayments from residential mortgage loans | 49,806 | 59,086 | ||||||||||||
| Principal repayments from consumer loans | 79,298 | 109,068 | ||||||||||||
| Principal repayments from MSRs and MSR financing receivables | 1,216 | 675 | ||||||||||||
| Proceeds from sale of MSRs and MSR financing receivables | 2,105 | 53,244 | ||||||||||||
| Proceeds from sale of RMBS | 738,887 | 2,686,857 | ||||||||||||
| Proceeds from sale of real estate owned | 7,210 | 28,996 | ||||||||||||
| Net cash provided by (used in) investing activities | 465,332 | (2,374,125) | ||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED), CONTINUED | ||
| (dollars in thousands) | ||
| Six Months Ended June 30, | ||||||||||||||
| 2022 | 2021 | |||||||||||||
| Cash Flows From Financing Activities | ||||||||||||||
| Repayments of secured financing agreements | (23,318,214) | (39,544,668) | ||||||||||||
| Repayments of warehouse credit facilities | (56,240,720) | (52,015,640) | ||||||||||||
| Net settlement of margin deposits under repurchase agreements and derivatives | 812,477 | (176,004) | ||||||||||||
| Repayments of secured notes and bonds payable | (2,220,042) | (4,058,588) | ||||||||||||
| Deferred financing fees | (1,398) | (1,332) | ||||||||||||
| Dividends paid on common and preferred stock | (278,293) | (194,624) | ||||||||||||
| Borrowings under secured financing agreements | 21,936,667 | 41,670,409 | ||||||||||||
| Borrowings under warehouse credit facilities | 50,995,092 | 53,628,840 | ||||||||||||
| Borrowings under secured notes and bonds payable | 2,929,949 | 3,716,891 | ||||||||||||
| Issuance of common stock | — | 512,012 | ||||||||||||
| Repurchase of preferred stock | (3,814) | — | ||||||||||||
| Costs related to issuance of common stock | — | (525) | ||||||||||||
| Noncontrolling interest in equity of consolidated subsidiaries - distributions | (15,968) | (34,015) | ||||||||||||
| Net cash provided by (used in) financing activities | (5,404,264) | 3,502,756 | ||||||||||||
| Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | 416,366 | 114,270 | ||||||||||||
| Cash, Cash Equivalents, and Restricted Cash, Beginning of Period | $ | 1,528,442 | $ | 1,080,473 | ||||||||||
| Cash, Cash Equivalents, and Restricted Cash, End of Period | $ | 1,944,808 | $ | 1,194,743 | ||||||||||
| Supplemental Disclosure of Cash Flow Information | ||||||||||||||
| Cash paid during the period for interest | 280,007 | 231,658 | ||||||||||||
| Cash paid during the period for income taxes | 1,636 | 14,489 | ||||||||||||
| Supplemental Schedule of Non-Cash Investing and Financing Activities | ||||||||||||||
| Dividends declared but not paid on common and preferred stock | 139,141 | 107,673 | ||||||||||||
| Transfer from residential mortgage loans to real estate owned and other assets | 4,890 | 25,583 | ||||||||||||
| Real estate securities retained from loan securitizations | 100,324 | 90,797 | ||||||||||||
| Residential mortgage loans subject to repurchase | 1,758,509 | 1,308,242 | ||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Origination | Servicing | MSR Related Investments | Total Origination and Servicing(A) | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | — | $ | 364,698 | $ | 104,780 | $ | 469,478 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 469,478 | ||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of MSRs and MSR financing receivables | — | 344,893 | (8,330) | 336,563 | — | — | — | — | — | 336,563 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing revenue, net | — | 709,591 | 96,450 | 806,041 | — | — | — | — | — | 806,041 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income | 46,216 | 16,757 | 11,340 | 74,313 | 54,584 | 22,640 | 18,109 | 36,748 | 5,254 | 211,648 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on originated residential mortgage loans, held-for-sale, net | 302,610 | 15,739 | — | 318,455 | — | (13,664) | — | — | — | 304,791 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues | 348,826 | 742,087 | 107,790 | 1,198,809 | 54,584 | 8,976 | 18,109 | 36,748 | 5,254 | 1,322,480 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 27,578 | 41,096 | 25,788 | 94,462 | 20,216 | 11,332 | 2,088 | 12,680 | 10,051 | 150,829 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A and other(B) | 349,432 | 120,395 | 55,401 | 525,228 | 710 | 11,891 | 2,160 | 14,600 | 431,325 | 985,914 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 377,010 | 161,491 | 81,189 | 619,690 | 20,926 | 23,223 | 4,248 | 27,280 | 441,376 | 1,136,743 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of investments, net | — | (1,780) | (93) | (1,873) | (241,213) | 11,399 | (7,196) | 4,843 | — | (234,040) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) on settlement of investments, net | — | (564) | (1,265) | (1,829) | 117,179 | (4,798) | — | (15,616) | — | 94,936 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income (loss), net | 1,832 | 207 | 16,280 | 18,319 | (2,127) | 29,471 | 15,725 | 7,430 | (9,430) | 59,388 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other income (loss) | 1,832 | (2,137) | 14,922 | 14,617 | (126,161) | 36,072 | 8,529 | (3,343) | (9,430) | (79,716) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | (26,352) | 578,459 | 41,523 | 593,736 | (92,503) | 21,825 | 22,390 | 6,125 | (445,552) | 106,021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | (6,522) | 151,236 | 9,466 | 154,180 | — | (2,480) | 1 | (3,623) | (75,388) | 72,690 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | (19,830) | 427,223 | 32,057 | 439,556 | (92,503) | 24,305 | 22,389 | 9,748 | (370,164) | 33,331 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests in income (loss) of consolidated subsidiaries | 1,287 | — | 41 | 1,328 | — | — | 12,854 | — | — | 14,182 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends on preferred stock | — | — | — | — | — | — | — | — | 22,427 | 22,427 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | (21,117) | $ | 427,223 | $ | 32,016 | $ | 438,228 | $ | (92,503) | $ | 24,305 | $ | 9,535 | $ | 9,748 | $ | (392,591) | $ | (3,278) | ||||||||||||||||||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Origination | Servicing | MSR Related Investments | Total Origination and Servicing(A) | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | — | $ | 713,103 | $ | 212,775 | $ | 925,878 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 925,878 | ||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of MSRs and MSR financing receivables | — | 842,210 | 69,746 | 911,956 | — | — | — | — | — | 911,956 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing revenue, net | — | 1,555,313 | 282,521 | 1,837,834 | — | — | — | — | — | 1,837,834 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income | 101,587 | 28,110 | 27,042 | 156,739 | 110,933 | 49,629 | 37,042 | 71,025 | 11,693 | 437,061 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on originated residential mortgage loans, held-for-sale, net | 709,879 | 77,501 | — | 789,885 | — | (13,098) | — | — | — | 776,787 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues | 811,466 | 1,660,924 | 309,563 | 2,784,458 | 110,933 | 36,531 | 37,042 | 71,025 | 11,693 | 3,051,682 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 57,013 | 74,802 | 52,153 | 183,968 | 29,245 | 32,200 | 4,350 | 19,649 | 20,250 | 289,662 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A and other(B) | 758,190 | 245,175 | 111,411 | 1,114,776 | 1,482 | 35,325 | 4,414 | 31,008 | 462,955 | 1,649,960 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 815,203 | 319,977 | 163,564 | 1,298,744 | 30,727 | 67,525 | 8,764 | 50,657 | 483,205 | 1,939,622 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of investments, net | — | (1,812) | (1,502) | (3,314) | (367,162) | (21,349) | (20,929) | 31,595 | — | (381,159) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) on settlement of investments, net | — | (879) | (3,464) | (4,343) | 166,599 | 40,114 | — | (46,250) | — | 156,120 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income (loss), net | 3,927 | 1,088 | 45,223 | 50,238 | (4,727) | 43,787 | 24,497 | 7,430 | (9,505) | 111,720 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other income (loss) | 3,927 | (1,603) | 40,257 | 42,581 | (205,290) | 62,552 | 3,568 | (7,225) | (9,505) | (113,319) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 190 | 1,339,344 | 186,256 | 1,528,295 | (125,084) | 31,558 | 31,846 | 13,143 | (481,017) | 998,741 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 157 | 312,155 | 40,963 | 353,275 | — | 1,177 | 38 | (3,623) | (75,388) | 275,479 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | 33 | 1,027,189 | 145,293 | 1,175,020 | (125,084) | 30,381 | 31,808 | 16,766 | (405,629) | 723,262 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests in income (loss) of consolidated subsidiaries | 1,694 | — | 269 | 1,963 | — | — | 17,828 | — | — | 19,791 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends on preferred stock | — | — | — | — | — | — | — | — | 44,888 | 44,888 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | (1,661) | $ | 1,027,189 | $ | 145,024 | $ | 1,173,057 | $ | (125,084) | $ | 30,381 | $ | 13,980 | $ | 16,766 | $ | (450,517) | $ | 658,583 | ||||||||||||||||||||||||||||||||||||||||||
| Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Origination | Servicing | MSR Related Investments | Total Origination and Servicing | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments | $ | 3,349,312 | $ | 7,156,949 | $ | 2,864,161 | $ | 13,370,422 | $ | 7,988,802 | $ | 2,821,898 | $ | 423,735 | $ | 1,756,079 | $ | — | $ | 26,360,936 | ||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 170,412 | 653,879 | 247,676 | 1,071,967 | 317,818 | 1,529 | 1,730 | 34,353 | 83,451 | 1,510,848 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restricted cash | 252,894 | 75,715 | 55,989 | 384,598 | 10,610 | 3,672 | 19,748 | 15,332 | — | 433,960 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 669,315 | 2,343,393 | 2,325,958 | 5,338,666 | 176,823 | 212,571 | 32,837 | 164,169 | 237,838 | 6,162,904 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | 11,836 | 12,540 | 5,092 | 29,468 | — | — | — | 55,731 | — | 85,199 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 4,453,769 | $ | 10,242,476 | $ | 5,498,876 | $ | 20,195,121 | $ | 8,494,053 | $ | 3,039,670 | $ | 478,050 | $ | 2,025,664 | $ | 321,289 | $ | 34,553,847 | ||||||||||||||||||||||||||||||||||||||||||
| Debt | $ | 3,421,076 | $ | 4,650,100 | $ | 3,341,447 | $ | 11,412,623 | $ | 7,660,612 | $ | 2,319,649 | $ | 357,663 | $ | 1,478,636 | $ | 604,244 | $ | 23,833,427 | ||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 363,425 | 2,424,304 | 150,330 | 2,938,059 | 10,932 | 339,357 | 998 | 21,588 | 346,488 | 3,657,422 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 3,784,501 | 7,074,404 | 3,491,777 | 14,350,682 | 7,671,544 | 2,659,006 | 358,661 | 1,500,224 | 950,732 | 27,490,849 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total equity | 669,268 | 3,168,072 | 2,007,099 | 5,844,439 | 822,509 | 380,664 | 119,389 | 525,440 | (629,443) | 7,062,998 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests in equity of consolidated subsidiaries | 13,345 | — | 9,613 | 22,958 | — | — | 46,213 | — | — | 69,171 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Rithm Capital stockholders’ equity | $ | 655,923 | $ | 3,168,072 | $ | 1,997,486 | $ | 5,821,481 | $ | 822,509 | $ | 380,664 | $ | 73,176 | $ | 525,440 | $ | (629,443) | $ | 6,993,827 | ||||||||||||||||||||||||||||||||||||||||||
| Investments in equity method investees | $ | — | $ | — | $ | 80,834 | $ | 80,834 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 80,834 | ||||||||||||||||||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Origination | Servicing | MSR Related Investments | Total Origination and Servicing(A) | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | (5,077) | $ | 219,070 | $ | 142,183 | $ | 356,176 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 356,176 | ||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of MSRs and MSR financing receivables | — | (224,515) | (193,468) | (417,983) | — | — | — | — | — | (417,983) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing revenue, net | (5,077) | (5,445) | (51,285) | (61,807) | — | — | — | — | — | (61,807) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income | 31,262 | 11,316 | 3,000 | 45,578 | 97,960 | 33,294 | 24,930 | — | — | 201,762 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on originated residential mortgage loans, held-for-sale, net | 268,539 | 12,794 | (56,861) | 273,697 | (3,638) | 16,826 | — | — | — | 286,885 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues | 294,724 | 18,665 | (105,146) | 257,468 | 94,322 | 50,120 | 24,930 | — | — | 426,840 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 18,960 | 18,643 | 25,961 | 63,564 | 13,630 | 17,463 | 2,873 | — | 9,009 | 106,539 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| G&A and other | 200,551 | 86,956 | 50,124 | 337,631 | 1,034 | 20,968 | 2,912 | — | 28,848 | 391,393 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 219,511 | 105,599 | 76,085 | 401,195 | 14,664 | 38,431 | 5,785 | — | 37,857 | 497,932 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of investments, net | — | — | (9,281) | (9,281) | 119,565 | 121,242 | (1,626) | — | — | 229,900 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) on settlement of investments, net | — | (965) | 226 | (739) | (76,270) | (1,254) | — | — | (348) | (78,611) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income (loss), net | 138 | — | 7,660 | 7,798 | 1,756 | 50,858 | 2,367 | — | 1,673 | 64,452 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other income (loss) | 138 | (965) | (1,395) | (2,222) | 45,051 | 170,846 | 741 | — | 1,325 | 215,741 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 75,351 | (87,899) | (182,626) | (145,949) | 124,709 | 182,535 | 19,886 | — | (36,532) | 144,649 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 19,030 | (16,035) | (21,381) | (18,386) | — | 17,288 | 21 | — | — | (1,077) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | 56,321 | (71,864) | (161,245) | (127,563) | 124,709 | 165,247 | 19,865 | — | (36,532) | 145,726 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests in income (loss) of consolidated subsidiaries | 3,225 | — | (1,825) | 1,400 | — | — | 8,653 | — | — | 10,053 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends on preferred stock | — | — | — | — | — | — | — | — | 14,358 | 14,358 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | 53,096 | $ | (71,864) | $ | (159,420) | $ | (128,963) | $ | 124,709 | $ | 165,247 | $ | 11,212 | $ | — | $ | (50,890) | $ | 121,315 | ||||||||||||||||||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Origination | Servicing | MSR Related Investments | Total Origination and Servicing(A) | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | (13,187) | $ | 438,623 | $ | 279,024 | $ | 704,460 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 704,460 | ||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of MSRs and MSR financing receivables | — | (77,164) | (148,545) | (225,709) | — | — | — | — | — | (225,709) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing revenue, net | (13,187) | 361,459 | 130,479 | 478,751 | — | — | — | — | — | 478,751 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income | 54,114 | 16,189 | 24,584 | 94,887 | 187,810 | 69,616 | 50,396 | — | — | 402,709 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on originated residential mortgage loans, held-for-sale, net | 652,962 | 24,811 | (64,892) | 650,599 | 9,760 | 29,974 | — | — | — | 690,333 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues | 693,889 | 402,459 | 90,171 | 1,224,237 | 197,570 | 99,590 | 50,396 | — | — | 1,571,793 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 37,023 | 41,743 | 54,763 | 133,529 | 29,350 | 38,739 | 5,891 | — | 17,935 | 225,444 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| G&A and other | 390,477 | 177,563 | 105,245 | 673,285 | 2,190 | 38,654 | 5,948 | — | 55,983 | 776,060 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 427,500 | 219,306 | 160,008 | 806,814 | 31,540 | 77,393 | 11,839 | — | 73,918 | 1,001,504 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of investments, net | — | — | (11,105) | (11,105) | (172,569) | 181,416 | (7,630) | — | — | (9,888) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) on settlement of investments, net | — | (1,630) | (12,186) | (13,816) | (104,626) | 28,187 | — | — | (348) | (90,603) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income (loss), net | 197 | 1,092 | 15,044 | 16,333 | 964 | 55,945 | 160 | — | 1,044 | 74,446 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other income (loss) | 197 | (538) | (8,247) | (8,588) | (276,231) | 265,548 | (7,470) | — | 696 | (26,045) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 266,586 | 182,615 | (78,084) | 408,835 | (110,201) | 287,745 | 31,087 | — | (73,222) | 544,244 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 55,416 | 17,639 | (8,544) | 64,511 | — | 32,591 | 80 | — | — | 97,182 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | 211,170 | 164,976 | (69,540) | 344,324 | (110,201) | 255,154 | 31,007 | — | (73,222) | 447,062 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests in income (loss) of consolidated subsidiaries | 6,750 | — | (517) | 6,233 | — | — | 13,214 | — | — | 19,447 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends on preferred stock | — | — | — | — | — | — | — | — | 28,716 | 28,716 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | 204,420 | $ | 164,976 | $ | (69,023) | $ | 338,091 | $ | (110,201) | $ | 255,154 | $ | 17,793 | $ | — | $ | (101,938) | $ | 398,899 | ||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Base servicing | |||||||||||||||||||||||
| MSR assets | $ | 300,676 | $ | 150,605 | $ | 581,786 | $ | 303,083 | |||||||||||||||
| Residential whole loans | 3,019 | 1,163 | 6,408 | 2,240 | |||||||||||||||||||
| Third party | 23,069 | 25,408 | 46,722 | 52,520 | |||||||||||||||||||
| 326,764 | 177,176 | 634,916 | 357,843 | ||||||||||||||||||||
| Other fees | |||||||||||||||||||||||
Ancillary and other fees(A) | 37,934 | 41,894 | 78,187 | 80,780 | |||||||||||||||||||
| Change in fair value due to: | |||||||||||||||||||||||
| Realization of cash flows | (117,680) | (212,793) | (250,956) | (422,062) | |||||||||||||||||||
| Change in valuation inputs and assumptions and other | 462,573 | (11,722) | 1,093,166 | 344,898 | |||||||||||||||||||
Total servicing fees | $ | 709,591 | $ | (5,445) | $ | 1,555,313 | $ | 361,459 | |||||||||||||||
| Servicing data - unpaid principal balance (“UPB”) (period end) (in millions) | |||||||||||||||||||||||
| UPB – MSR assets | $ | 399,900 | $ | 221,747 | $ | 399,900 | $ | 221,747 | |||||||||||||||
| UPB – Residential whole loans | 10,959 | 7,751 | 10,959 | 7,751 | |||||||||||||||||||
| UPB – Third party | 87,190 | 76,409 | 87,190 | 76,409 | |||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2022 | December 31, 2021 | ||||||||||
| Direct investments in Excess MSRs | $ | 256,216 | $ | 259,198 | |||||||
| Excess MSR Joint Ventures | 80,834 | 85,749 | |||||||||
| Excess mortgage servicing rights, at fair value | $ | 337,050 | $ | 344,947 | |||||||
| Servicer | |||||||||||||||||
| Mr. Cooper | SLS(A) | Total | |||||||||||||||
| Balance as of December 31, 2021 | $ | 257,573 | $ | 1,625 | $ | 259,198 | |||||||||||
| Interest income | 20,094 | 511 | 20,605 | ||||||||||||||
| Other income | 37 | — | 37 | ||||||||||||||
| Proceeds from repayments | (20,909) | (154) | (21,063) | ||||||||||||||
| Proceeds from sales | (997) | — | (997) | ||||||||||||||
| Change in fair value | (1,119) | (445) | (1,564) | ||||||||||||||
Balance as of June 30, 2022 | $ | 254,679 | $ | 1,537 | $ | 256,216 | |||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
| UPB of Underlying Mortgages | Interest in Excess MSR | Weighted Average Life Years(A) | Amortized Cost Basis(B) | Carrying Value(C) | Carrying Value(C) | ||||||||||||||||||||||||||||||||||||||||||
Rithm Capital(D) | Fortress-managed funds | Mr. Cooper | |||||||||||||||||||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||||||||||||||||||||
Original and Recaptured Pools | $ | 24,304,488 | 32.5% - 66.7% (53.3%) | 0.0% - 40% | 20.0% - 35.0% | 6.4 | $ | 117,834 | $ | 128,793 | $ | 131,997 | |||||||||||||||||||||||||||||||||||
Non-Agency(E) | |||||||||||||||||||||||||||||||||||||||||||||||
Mr. Cooper and SLS Serviced: | |||||||||||||||||||||||||||||||||||||||||||||||
Original and Recaptured Pools | 27,878,615 | 33.3% - 100.0% (59.4%) | 0.0% - 50% | 0.0% - 33.3% | 7.3 | 94,985 | 127,423 | 127,201 | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 52,183,103 | 6.8 | $ | 212,819 | $ | 256,216 | $ | 259,198 | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Original and Recaptured Pools | $ | 1,066 | $ | (4,211) | $ | (1,564) | $ | (8,829) | |||||||||||||||
| June 30, 2022 | December 31, 2021 | ||||||||||
| Excess MSR | $ | 149,598 | $ | 152,383 | |||||||
| Other assets | 12,756 | 19,802 | |||||||||
| Other liabilities | (687) | (687) | |||||||||
| Equity | $ | 161,667 | $ | 171,498 | |||||||
| Rithm Capital’s investment | $ | 80,834 | $ | 85,749 | |||||||
| Rithm Capital’s percentage ownership | 50.0 | % | 50.0 | % | |||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Interest income | $ | 410 | $ | (2,919) | $ | 6,077 | $ | 6,239 | |||||||||||||||
| Other income (loss) | (91) | 1,791 | (2,343) | (1,029) | |||||||||||||||||||
| Expenses | (8) | (8) | (16) | (16) | |||||||||||||||||||
| Net income (loss) | $ | 311 | $ | (1,136) | $ | 3,718 | $ | 5,194 | |||||||||||||||
| Balance at December 31, 2021 | $ | 85,749 | |||
| Distributions of capital from equity method investees | (6,774) | ||||
| Change in fair value of investments in equity method investees | 1,859 | ||||
| Balance at June 30, 2022 | $ | 80,834 | |||
| June 30, 2022 | |||||||||||||||||||||||||||||||||||
| Unpaid Principal Balance | Investee Interest in Excess MSR(A) | Rithm Capital Interest in Investees | Amortized Cost Basis(B) | Carrying Value(C) | Weighted Average Life (Years)(D) | ||||||||||||||||||||||||||||||
| Agency | |||||||||||||||||||||||||||||||||||
| Original and Recaptured Pools | $ | 20,938,443 | 66.7 | % | 50.0 | % | $ | 110,896 | $ | 149,598 | 6.2 | ||||||||||||||||||||||||
| Balance as of December 31, 2021 | $ | 6,858,803 | |||
Purchases, net(A) | (613) | ||||
Originations(B) | 790,922 | ||||
| Proceeds from sales | (4,284) | ||||
| Change in fair value due to: | |||||
Realization of cash flows(C) | (380,590) | ||||
| Change in valuation inputs and assumptions | 1,359,992 | ||||
| (Gain) loss realized | 2,179 | ||||
| Balance at June 30, 2022 | $ | 8,626,409 | |||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | 434,789 | $ | 311,432 | $ | 856,344 | $ | 619,264 | |||||||||||||||
| Ancillary and other fees | 34,689 | 44,744 | 69,534 | 85,196 | |||||||||||||||||||
| Servicing fee revenue, net and fees | 469,478 | 356,176 | 925,878 | 704,460 | |||||||||||||||||||
| Change in fair value due to: | |||||||||||||||||||||||
Realization of cash flows(A) | (180,265) | (297,778) | (380,590) | (637,448) | |||||||||||||||||||
Change in valuation inputs and assumptions(B) | 514,955 | (115,986) | 1,359,992 | 425,980 | |||||||||||||||||||
| Change in fair value of derivative instruments | — | 8,624 | 7,189 | (199) | |||||||||||||||||||
| (Gain) loss realized | 1,873 | (15,150) | 2,179 | (16,349) | |||||||||||||||||||
| Gain (loss) on settlement of derivative instruments | — | 2,307 | (76,814) | 2,307 | |||||||||||||||||||
| Servicing revenue, net | $ | 806,041 | $ | (61,807) | $ | 1,837,834 | $ | 478,751 | |||||||||||||||
| UPB of Underlying Mortgages | Weighted Average Life (Years)(A) | Carrying Value(B) | |||||||||||||||
| Agency | $ | 374,752,192 | 7.5 | $ | 5,845,943 | ||||||||||||
| Non-Agency | 57,260,465 | 7.5 | 808,528 | ||||||||||||||
Ginnie Mae(C) | 116,082,508 | 7.4 | 1,971,938 | ||||||||||||||
| Total | $ | 548,095,165 | 7.5 | $ | 8,626,409 | ||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Percentage of Total Outstanding Unpaid Principal Amount | ||||||||||||||
| State Concentration | June 30, 2022 | December 31, 2021 | ||||||||||||
| California | 17.7 | % | 18.1 | % | ||||||||||
| Florida | 8.6 | % | 8.6 | % | ||||||||||
| Texas | 6.2 | % | 6.2 | % | ||||||||||
| New York | 6.1 | % | 6.0 | % | ||||||||||
| Washington | 5.8 | % | 5.6 | % | ||||||||||
| New Jersey | 4.5 | % | 4.5 | % | ||||||||||
| Virginia | 3.5 | % | 3.4 | % | ||||||||||
| Maryland | 3.4 | % | 3.4 | % | ||||||||||
| Illinois | 3.4 | % | 3.4 | % | ||||||||||
| Georgia | 2.9 | % | 3.0 | % | ||||||||||
| Other U.S. | 37.9 | % | 37.8 | % | ||||||||||
| 100.0 | % | 100.0 | % | |||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2022 | December 31, 2021 | ||||||||||
| Principal and interest advances | $ | 622,819 | $ | 562,418 | |||||||
| Escrow advances (taxes and insurance advances) | 1,243,374 | 1,523,154 | |||||||||
| Foreclosure advances | 741,440 | 793,098 | |||||||||
Total(A)(B)(C) | $ | 2,607,633 | $ | 2,878,670 | |||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Balance at December 31, 2021 | $ | 32,122 | |||
| Provision | 5,056 | ||||
| Transfers and Other | — | ||||
| Write-offs | (4,724) | ||||
| Balance at June 30, 2022 | $ | 32,454 | |||
| Amortized Cost Basis | Carrying Value(A) | Weighted Average Discount Rate | Weighted Average Yield | Weighted Average Life (Years)(B) | |||||||||||||||||||||||||
| June 30, 2022 | |||||||||||||||||||||||||||||
| Servicer Advance Investments | $ | 365,677 | $ | 379,901 | 5.2 | % | 5.5 | % | 7.5 | ||||||||||||||||||||
| December 31, 2021 | |||||||||||||||||||||||||||||
| Servicer Advance Investments | $ | 405,786 | $ | 421,807 | 5.2 | % | 5.5 | % | 6.9 | ||||||||||||||||||||
| UPB of Underlying Residential Mortgage Loans | Outstanding Servicer Advances | Servicer Advances to UPB of Underlying Residential Mortgage Loans | Face Amount of Secured Notes and Bonds Payable | Loan-to-Value (“LTV”)(A) | Cost of Funds(C) | ||||||||||||||||||||||||||||||||||||||||||
| Gross | Net(B) | Gross | Net | ||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advance Investments(D) | $ | 18,224,076 | $ | 341,328 | 1.9 | % | $ | 322,735 | 91.7 | % | 91.0 | % | 1.2 | % | 1.2 | % | |||||||||||||||||||||||||||||||
| December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advance Investments(D) | $ | 20,314,977 | $ | 369,440 | 1.8 | % | $ | 356,580 | 91.4 | % | 90.7 | % | 1.3 | % | 1.2 | % | |||||||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2022 | December 31, 2021 | |||||||||||||
| Principal and interest advances | $ | 64,203 | $ | 67,014 | ||||||||||
| Escrow advances (taxes and insurance advances) | 153,991 | 174,681 | ||||||||||||
| Foreclosure advances | 123,134 | 127,745 | ||||||||||||
| Total | $ | 341,328 | $ | 369,440 | ||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Interest income, gross of amounts attributable to servicer compensation | $ | 7,969 | $ | 3,544 | $ | 21,344 | $ | 17,505 | |||||||||||||||
| Amounts attributable to base servicer compensation | (826) | (590) | (2,306) | (1,746) | |||||||||||||||||||
Amounts attributable to incentive servicer compensation | (4,445) | (3,043) | (12,184) | (9,036) | |||||||||||||||||||
| Interest income (expense) from servicer advance investments | $ | 2,698 | $ | (89) | $ | 6,854 | $ | 6,723 | |||||||||||||||
| June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outstanding Face Amount | Gains | Losses | Carrying Value(A) | Number of Securities | Rating(B) | Coupon(C) | Yield | Life (Years)(D) | Principal Subordination(E) | Carrying Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RMBS Designated as Available for Sale (AFS): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency(F)(G) | $ | 83,820 | $ | — | $ | — | $ | 81,515 | 1 | AAA | 3.50 | % | 3.50 | % | 4.4 | N/A | $ | 98,367 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency(H)(I) | 2,749,667 | 71,903 | (13,145) | 445,358 | 334 | AA | 3.40 | % | 3.30 | % | 3.4 | 26.6 | % | 522,416 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RMBS Measured at Fair Value through Net Income (FVO): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency(F)(G) | 7,913,166 | 66 | (1,155,303) | 6,982,553 | 39 | AAA | 2.20 | % | 2.20 | % | 9.6 | N/A | 8,346,230 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency(H)(I) | 14,554,849 | 26,369 | (82,251) | 479,376 | 319 | AA+ | 2.30 | % | 4.40 | % | 3.9 | 20.3 | % | 429,526 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total/ Weighted Average | $ | 25,301,502 | $ | 98,338 | $ | (1,250,699) | $ | 7,988,802 | 693 | AAA | 2.25 | % | 2.37 | % | 9.0 | $ | 9,396,539 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset Type | Outstanding Face Amount | Gains | Losses | Carrying Value | Number of Securities | Rating | Coupon | Yield | Life (Years) | Principal Subordination | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 414 | $ | — | $ | — | $ | 355 | 1 | B- | 8.3 | % | 8.3 | % | 2.8 | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Consumer loan bonds | 1,065 | 972 | — | 1,395 | 3 | N/A | N/A | N/A | 0.0 | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value option securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-only securities | 8,660,811 | 9,307 | (43,281) | 147,210 | 135 | AA+ | 1.0 | % | 2.6 | % | 2.3 | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing strips | 4,576,372 | 8,609 | (8,817) | 53,667 | 61 | N/A | 1.1 | % | 12.2 | % | 2.5 | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | Agency | Non-Agency | Agency | Non-Agency | Agency | Non-Agency | Agency | Non-Agency | |||||||||||||||||||||||||||||||||||||||
| Purchases | |||||||||||||||||||||||||||||||||||||||||||||||
| Face | $ | — | $ | 1,073.0 | $ | 1,880.0 | $ | 849.6 | $ | 998.2 | $ | 3,283.1 | $ | 5,907.2 | $ | 1,657.7 | |||||||||||||||||||||||||||||||
| Purchase price | — | 32.9 | 1,895.7 | 52.3 | 1,004.5 | 148.6 | 6,098.8 | 90.8 | |||||||||||||||||||||||||||||||||||||||
| Sales | |||||||||||||||||||||||||||||||||||||||||||||||
| Face | $ | 829.8 | $ | — | $ | 1,073.2 | $ | 552.8 | $ | 829.8 | $ | — | $ | 3,487.8 | $ | 1,686.3 | |||||||||||||||||||||||||||||||
| Amortized cost | 857.0 | — | 1,123.1 | 27.4 | 857.0 | 1.6 | 3,636.4 | 185.2 | |||||||||||||||||||||||||||||||||||||||
| Sale price | 738.9 | — | 1,109.1 | 16.8 | 738.9 | — | 3,631.3 | 164.6 | |||||||||||||||||||||||||||||||||||||||
| Gain (loss) on sale | (118.1) | — | (14.0) | (10.7) | (118.1) | (1.6) | (5.2) | (20.5) | |||||||||||||||||||||||||||||||||||||||
| Securities in an Unrealized Loss Position | Outstanding Face Amount | Amortized Cost Basis | Gross Unrealized Losses | Carrying Value | Number of Securities | Weighted Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Before Credit Impairment | Credit Impairment(A) | After Credit Impairment | Rating | Coupon | Yield | Life (Years) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | $ | 384,799 | $ | 382,423 | $ | (2,202) | $ | 380,220 | $ | (13,047) | $ | 367,173 | 159 | AAA | 3.7 | % | 3.5 | % | 3.8 | |||||||||||||||||||||||||||||||||||||||||||||||||
12 or More Months | 18,094 | 8,931 | (4,154) | 4,777 | (98) | 4,679 | 14 | AAA | 1.9 | % | 0.7 | % | 0.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average | $ | 402,893 | $ | 391,354 | $ | (6,356) | $ | 384,997 | $ | (13,145) | $ | 371,852 | 173 | AAA | 3.7 | % | 3.5 | % | 3.8 | |||||||||||||||||||||||||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
| Gross Unrealized Losses | Gross Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||
| RMBS Designated as AFS | Fair Value | Amortized Cost Basis After Credit Impairment | Credit(A) | Non-Credit(B) | Fair Value | Amortized Cost Basis After Credit Impairment | Credit(A) | Non-Credit(B) | |||||||||||||||||||||||||||||||||||||||
| Securities Rithm Capital intends to sell | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
Securities Rithm Capital is more likely than not to be required to sell(C) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Securities Rithm Capital has no intent to sell and is not more likely than not to be required to sell: | |||||||||||||||||||||||||||||||||||||||||||||||
| Credit impaired securities | 86,372 | 86,372 | (6,356) | — | 6,581 | 6,581 | (3,471) | — | |||||||||||||||||||||||||||||||||||||||
| Non-credit impaired securities | 285,480 | 298,625 | — | (13,145) | 3,927 | 4,044 | — | (117) | |||||||||||||||||||||||||||||||||||||||
| Total debt securities in an unrealized loss position | $ | 371,852 | $ | 384,997 | $ | (6,356) | $ | (13,145) | $ | 10,508 | $ | 10,625 | $ | (3,471) | $ | (117) | |||||||||||||||||||||||||||||||
| RMBS Designated as AFS | Purchased Credit Deteriorated | Non-Purchased Credit Deteriorated | Total | ||||||||||||||
Allowance for credit losses on available-for-sale debt securities at December 31, 2021 | $ | 3,471 | $ | — | $ | 3,471 | |||||||||||
Additions to the allowance for credit losses on securities for which credit losses were not previously recorded | 33 | 2,169 | 2,202 | ||||||||||||||
Additions to the allowance for credit losses arising from purchases of available-for-sale debt securities accounted for as purchased financial assets with credit deterioration | — | — | — | ||||||||||||||
Reductions for securities sold during the period | — | — | — | ||||||||||||||
Reductions in the allowance for credit losses because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis | — | — | — | ||||||||||||||
Additional increases (decreases) to the allowance for credit losses on securities that had credit losses or an allowance recorded in a previous period | 683 | — | 683 | ||||||||||||||
Write-offs charged against the allowance | — | — | — | ||||||||||||||
Recoveries of amounts previously written off | — | — | — | ||||||||||||||
Allowance for credit losses on available-for-sale debt securities at June 30, 2022 | $ | 4,187 | $ | 2,169 | $ | 6,356 | |||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Outstanding Face Amount | Carrying Value | ||||||||||
| June 30, 2022 | $ | 545,910 | $ | 202,947 | |||||||
| December 31, 2021 | 512,731 | 180,890 | |||||||||
| Balance at December 31, 2021 | $ | 36,093 | |||
| Additions | 10,389 | ||||
| Accretion | (2,259) | ||||
| Reclassifications from (to) non-accretable difference | 660 | ||||
| Disposals | — | ||||
| Balance at June 30, 2022 | $ | 44,883 | |||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
| Loan Type | Outstanding Face Amount | Carrying Value | Loan Count | Weighted Average Yield | Weighted Average Life (Years)(A) | Carrying Value | ||||||||||||||||||||||||||||||||
Total residential mortgage loans, held-for-investment, at fair value(B) | $ | 576,750 | $ | 510,744 | 10,273 | 7.1 | % | 4.4 | $ | 569,933 | ||||||||||||||||||||||||||||
Acquired performing loans(C) | 102,734 | 92,430 | 2,689 | 6.7 | % | 4.9 | 130,634 | |||||||||||||||||||||||||||||||
Acquired non-performing loans(D) | 29,203 | 24,623 | 217 | 6.3 | % | 5.2 | 2,287 | |||||||||||||||||||||||||||||||
| Total residential mortgage loans, held-for-sale, at lower of cost or market | $ | 131,937 | $ | 117,053 | 2,906 | 6.6 | % | 5.0 | $ | 132,921 | ||||||||||||||||||||||||||||
Acquired performing loans(C)(E) | $ | 1,759,976 | $ | 1,661,890 | 10,370 | 4.7 | % | 13.3 | $ | 2,070,262 | ||||||||||||||||||||||||||||
Acquired non-performing loans(D)(E) | 308,514 | 282,734 | 1,546 | 4.4 | % | 12.5 | 315,063 | |||||||||||||||||||||||||||||||
| Originated loans | 3,319,543 | 3,349,312 | 4,751 | 5.1 | % | 28.9 | 8,829,599 | |||||||||||||||||||||||||||||||
| Total residential mortgage loans, held-for-sale, at fair value | $ | 5,388,033 | $ | 5,293,936 | 16,667 | 4.9 | % | 22.9 | $ | 11,214,924 | ||||||||||||||||||||||||||||
| Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market | $ | 5,519,970 | $ | 5,410,989 | $ | 11,347,845 | ||||||||||||||||||||||||||||||||
| Percentage of Total Outstanding Unpaid Principal Amount | ||||||||||||||
| State Concentration | June 30, 2022 | December 31, 2021 | ||||||||||||
| California | 11.5 | % | 15.7 | % | ||||||||||
| Florida | 10.5 | % | 10.1 | % | ||||||||||
| Texas | 8.0 | % | 7.5 | % | ||||||||||
| New York | 6.6 | % | 7.1 | % | ||||||||||
| Washington | 5.8 | % | 6.7 | % | ||||||||||
| Georgia | 4.1 | % | 3.8 | % | ||||||||||
| New Jersey | 4.0 | % | 3.3 | % | ||||||||||
| Illinois | 3.3 | % | 3.1 | % | ||||||||||
| Virginia | 3.1 | % | 3.1 | % | ||||||||||
| Maryland | 3.0 | % | 2.8 | % | ||||||||||
| Other U.S. | 40.1 | % | 36.8 | % | ||||||||||
| 100.0 | % | 100.0 | % | |||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
| Days Past Due | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal Balance | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal Balance | ||||||||||||||||||||||||||||||||
| 90+ | 672,891 | 609,875 | (63,016) | 779,178 | 740,043 | (39,135) | ||||||||||||||||||||||||||||||||
| Loans Held-for-Investment, at Fair Value | Loans Held-for-Sale, at Lower of Cost or Fair Value | Loans Held-for-Sale, at Fair Value | Total | ||||||||||||||||||||
Balance at December 31, 2021 | $ | 569,932 | $ | 132,921 | $ | 11,214,924 | $ | 11,917,777 | |||||||||||||||
| Originations | — | — | 45,730,604 | 45,730,604 | |||||||||||||||||||
| Sales | — | (720) | (54,740,975) | (54,741,695) | |||||||||||||||||||
| Purchases/additional fundings | 7,182 | — | 3,508,202 | 3,515,384 | |||||||||||||||||||
| Proceeds from repayments | (47,444) | (10,173) | (277,101) | (334,718) | |||||||||||||||||||
Transfer of loans to other assets(A) | — | — | (27,083) | (27,083) | |||||||||||||||||||
| Transfer of loans to real estate owned | (1,658) | 312 | 494 | (852) | |||||||||||||||||||
| Transfers of loans to held for sale | (1,582) | — | — | (1,582) | |||||||||||||||||||
| Transfer of loans from held-for-investment | — | — | 1,582 | 1,582 | |||||||||||||||||||
| Valuation (provision) reversal on loans | — | (5,287) | — | (5,287) | |||||||||||||||||||
| Fair value adjustments due to: | |||||||||||||||||||||||
| Changes in instrument-specific credit risk | (1,646) | — | (3,897) | (5,543) | |||||||||||||||||||
| Other factors | (14,040) | — | (112,814) | (126,854) | |||||||||||||||||||
Balance at June 30, 2022 | $ | 510,744 | $ | 117,053 | $ | 5,293,936 | $ | 5,921,733 | |||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||
| Loans held-for-investment, at fair value | $ | 10,468 | $ | 11,911 | $ | 20,749 | $ | 22,971 | |||||||||||||||
| Loans held-for-sale, at lower of cost or fair value | 2,045 | 4,132 | 3,816 | 12,274 | |||||||||||||||||||
| Loans held-for-sale, at fair value | 56,343 | 48,513 | 126,651 | 88,485 | |||||||||||||||||||
| Total interest income | 68,856 | 64,556 | 151,216 | 123,730 | |||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||
| Loans held-for-investment, at fair value | 3,081 | 4,079 | 6,162 | 8,890 | |||||||||||||||||||
| Loans held-for-sale, at lower of cost or fair value | 823 | 2,554 | 1,672 | 10,340 | |||||||||||||||||||
| Loans held-for-sale, at fair value and SFR properties | 39,267 | 29,790 | 81,379 | 56,532 | |||||||||||||||||||
| Total interest expense | 43,171 | 36,423 | 89,213 | 75,762 | |||||||||||||||||||
| Net interest income | $ | 25,685 | $ | 28,133 | $ | 62,003 | $ | 47,968 | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Gain (loss) on residential mortgage loans originated and sold, net(A) | $ | (421,834) | $ | 96,639 | $ | (792,255) | $ | 97,726 | |||||||||||||||
Gain (loss) on settlement of residential mortgage loan origination derivative instruments(B) | 526,933 | 113,995 | 1,051,756 | 154,116 | |||||||||||||||||||
MSRs retained on transfer of residential mortgage loans(C) | 329,470 | 207,663 | 790,922 | 463,136 | |||||||||||||||||||
Other(D) | 1,838 | 28,405 | 29,539 | 52,102 | |||||||||||||||||||
| Realized gain on sale of originated residential mortgage loans, net | $ | 436,407 | $ | 446,702 | $ | 1,079,962 | $ | 767,080 | |||||||||||||||
| Change in fair value of residential mortgage loans | 20,038 | 93,350 | (269,959) | 3,387 | |||||||||||||||||||
| Change in fair value of interest rate lock commitments (Note 17) | 77,481 | 55,299 | (50,204) | (179,683) | |||||||||||||||||||
| Change in fair value of derivative instruments (Note 17) | (229,135) | (308,466) | 16,988 | 99,549 | |||||||||||||||||||
| Gain on originated residential mortgage loans, held-for-sale, net | $ | 304,791 | $ | 286,885 | $ | 776,787 | $ | 690,333 | |||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Unpaid Principal Balance | Carrying Value | Weighted Average Coupon | Weighted Average Expected Life (Years)(A) | ||||||||||||||||||||
| June 30, 2022 | |||||||||||||||||||||||
| Total consumer loans | $ | 380,603 | $ | 423,735 | 17.5 | % | 3.2 | ||||||||||||||||
| December 31, 2021 | |||||||||||||||||||||||
| Total consumer loans | $ | 449,875 | $ | 507,291 | 17.5 | % | 3.2 | ||||||||||||||||
| June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
| Days Past Due | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal Balance | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal Balance | ||||||||||||||||||||||||||||||||
| 90+ | 6,734 | 7,370 | 636 | 7,394 | 8,232 | 838 | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2021 | $ | 507,291 | |||
Additional fundings(A) | 14,350 | ||||
| Proceeds from repayments | (84,637) | ||||
| Accretion of loan discount and premium amortization, net | 7,695 | ||||
| Fair value adjustment due to: | |||||
| Changes in instrument-specific credit risk | 4,126 | ||||
| Other factors | (25,090) | ||||
| Balance at June 30, 2022 | $ | 423,735 | |||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2022 | December 31, 2021 | ||||||||||
| Land | $ | 170,055 | $ | 109,152 | |||||||
| Building | 680,219 | 436,610 | |||||||||
| Capital improvements | 90,314 | 40,655 | |||||||||
| Total gross investment in SFR properties | 940,588 | 586,417 | |||||||||
| Accumulated depreciation | (13,361) | (6,810) | |||||||||
| Investment in SFR properties, net | $ | 927,227 | $ | 579,607 | |||||||
| Balance at December 31, 2021 | $ | 579,607 | ||||||
| Acquisitions and capital improvements | 354,792 | |||||||
| Dispositions | (621) | |||||||
| Accumulated depreciation | (6,551) | |||||||
| Balance at June 30, 2022 | $ | 927,227 | ||||||
| 2022 | $ | 38,937 | ||||||
| 2023 and thereafter | 15,675 | |||||||
| Total | $ | 54,612 | ||||||
| Balance at December 31, 2021 | 2,551 | |||||||
| Acquisition of SFR units | 1,059 | |||||||
| Disposition of SFR units | (2) | |||||||
| Reclassifications to SFR properties, held for sale | — | |||||||
| Balance at June 30, 2022 | 3,608 | |||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
Carrying Value(A) | % of Portfolio | Loan Count | % of Portfolio | Weighted Average Yield | Weighted Average Original Life (Months) | Weighted Average Committed Loan Balance to Value(B) | ||||||||||||||||||||||||||||||||||||||
| Construction | $ | 755,077 | 43.0 | % | 568 | 39.0 | % | 8.1 | % | 14.3 | 76.2% / 65.5% | |||||||||||||||||||||||||||||||||
| Bridge | 722,282 | 41.1 | % | 455 | 31.3 | % | 7.6 | % | 16.6 | 77.1% | ||||||||||||||||||||||||||||||||||
| Renovation | 278,720 | 15.9 | % | 433 | 29.7 | % | 7.8 | % | 12.9 | 77.9% / 66.7% | ||||||||||||||||||||||||||||||||||
| $ | 1,756,079 | 100.0 | % | 1,456 | 100.0 | % | 7.8 | % | 15.0 | N/A | ||||||||||||||||||||||||||||||||||
| Balance at December 31, 2021 | $ | 1,515,762 | ||||||
| Initial loan advances | 828,032 | |||||||
| Construction holdbacks and draws | 240,031 | |||||||
| Paydowns and payoffs | (783,878) | |||||||
| Purchased loans premium amortization | (43,868) | |||||||
| Fair value adjustments due to: | ||||||||
| Changes in instrument-specific credit risk | — | |||||||
| Other factors | — | |||||||
| Balance at June 30, 2022 | $ | 1,756,079 | ||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
| Days Past Due | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal Balance | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal Balance | ||||||||||||||||||||||||||||||||
| Current | $ | 1,756,079 | $ | 1,756,079 | $ | — | $ | 1,473,894 | $ | 1,515,762 | $ | 41,868 | ||||||||||||||||||||||||||
| 90+ | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
| State Concentration | Percentage of Total Loan Commitment | |||||||
| California | 57.2 | % | ||||||
| Washington | 9.5 | % | ||||||
| New York | 5.2 | % | ||||||
| Other U.S. | 28.1 | % | ||||||
| 100.0 | % | |||||||
| June 30, 2022 | December 31, 2021 | ||||||||||
| MSRs and servicer advances | $ | 55,989 | $ | 27,182 | |||||||
| Real estate and other securities | 10,610 | 15,342 | |||||||||
| Consumer loans | 19,748 | 21,961 | |||||||||
| SFR properties | 3,672 | 2,482 | |||||||||
| Origination and servicing | 328,609 | 128,588 | |||||||||
Mortgage loans receivable(A) | 15,332 | — | |||||||||
| Other | — | 312 | |||||||||
| Total restricted cash | $ | 433,960 | $ | 195,867 | |||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Six Months Ended June 30, | |||||||||||
| 2022 | 2021 | ||||||||||
Cash and cash equivalents | $ | 1,510,848 | $ | 956,242 | |||||||
| Restricted cash | 433,960 | 238,501 | |||||||||
Total cash, cash equivalents and restricted cash | $ | 1,944,808 | $ | 1,194,743 | |||||||
| Other Assets | Accrued Expenses and Other Liabilities | ||||||||||||||||||||||||||||
| June 30, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||
Margin receivable, net(A) | $ | 256,186 | $ | 358,041 | Margin payable | $ | 41,410 | $ | 9,821 | ||||||||||||||||||||
| Servicing fee receivables | 123,269 | 117,935 | Interest payable | 40,586 | 30,931 | ||||||||||||||||||||||||
| Principal and interest receivable | 95,709 | 85,084 | Accounts payable | 199,886 | 345,901 | ||||||||||||||||||||||||
Equity investments(B) | 63,839 | 81,052 | Termination fee payable (Note 25) | 200,000 | — | ||||||||||||||||||||||||
| Other receivables | 193,856 | 233,342 | Derivative liabilities (Note 17) | 57,224 | 34,583 | ||||||||||||||||||||||||
| REO | 17,052 | 21,641 | Accrued compensation and benefits | 114,955 | 201,057 | ||||||||||||||||||||||||
Goodwill (Note 15)(C) | 85,199 | 85,199 | Operating lease liabilities (Note 16) | 117,730 | 142,620 | ||||||||||||||||||||||||
Notes receivable, at fair value(D) | 52,692 | 60,549 | Deferred tax liability | 716,148 | 440,690 | ||||||||||||||||||||||||
| Warrants, at fair value | 21,090 | 27,354 | Other liabilities | 283,061 | 153,165 | ||||||||||||||||||||||||
| Property and equipment | 44,803 | 56,617 | $ | 1,771,000 | $ | 1,358,768 | |||||||||||||||||||||||
| Intangible assets (Note 15) | 145,700 | 143,133 | |||||||||||||||||||||||||||
| Prepaid expenses | 69,866 | 115,110 | |||||||||||||||||||||||||||
| Operating lease right-of-use assets (Note 16) | 98,504 | 117,131 | |||||||||||||||||||||||||||
| Derivative assets (Note 17) | 194,507 | 138,173 | |||||||||||||||||||||||||||
Loans receivable, at fair value(E) | 164,901 | 229,631 | |||||||||||||||||||||||||||
Credit facilities receivable(F) | 34,419 | 41,351 | |||||||||||||||||||||||||||
Loans in process and settlements in process(G) | 105,818 | 11,681 | |||||||||||||||||||||||||||
| Other assets | 161,488 | 105,728 | |||||||||||||||||||||||||||
| $ | 1,928,898 | $ | 2,028,752 | ||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Balance at December 31, 2021 | $ | 21,641 | |||
| Purchases | 210 | ||||
| Transfer of loans to REO | 4,890 | ||||
Sales(A) | (10,569) | ||||
| Valuation (provision) reversal | 880 | ||||
| Balance at June 30, 2022 | $ | 17,052 | |||
| Notes Receivable | Loans Receivable | Total | |||||||||||||||
Balance at December 31, 2021 | $ | 60,549 | $ | 229,631 | $ | 290,180 | |||||||||||
| Fundings | — | — | — | ||||||||||||||
| Payment in Kind | 2,412 | 4,380 | 6,792 | ||||||||||||||
| Proceeds from repayments | — | (68,751) | (68,751) | ||||||||||||||
| Transfer to other assets | (1,000) | — | (1,000) | ||||||||||||||
| Fair value adjustments due to: | |||||||||||||||||
| Changes in instrument-specific credit risk | (9,042) | — | (9,042) | ||||||||||||||
| Other factors | (227) | (359) | (586) | ||||||||||||||
Balance at June 30, 2022 | $ | 52,692 | $ | 164,901 | $ | 217,593 | |||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
| Days Past Due | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal Balance | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal Balance | ||||||||||||||||||||||||||||||||
| Current | $ | 226,106 | $ | 217,593 | $ | (8,513) | $ | 289,065 | $ | 290,180 | $ | 1,115 | ||||||||||||||||||||||||||
| 90+ | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Legal and professional | $ | 20,822 | $ | 18,587 | $ | 49,408 | $ | 36,806 | |||||||||||||||
| Loan origination | 35,015 | 44,916 | 74,916 | 85,161 | |||||||||||||||||||
| Occupancy | 28,886 | 10,221 | 58,663 | 20,571 | |||||||||||||||||||
| Subservicing | 41,987 | 45,278 | 88,795 | 95,117 | |||||||||||||||||||
| Loan servicing | 4,866 | 4,627 | 10,170 | 9,306 | |||||||||||||||||||
| Property and maintenance | 22,108 | 15,755 | 45,711 | 27885 | |||||||||||||||||||
Other | 71,587 | 33,602 | 143,846 | 62,001 | |||||||||||||||||||
| Total general and administrative expenses | $ | 225,271 | $ | 172,986 | $ | 471,509 | $ | 336,847 | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Excess MSRs | $ | 1,066 | $ | (4,211) | $ | (1,564) | $ | (8,829) | |||||||||||||||
Excess MSRs, equity method investees | 156 | (568) | 1,859 | 2,597 | |||||||||||||||||||
Servicer advance investments | (1,314) | (4,502) | (1,797) | (4,873) | |||||||||||||||||||
Real estate and other securities | (379,656) | 156,792 | (984,951) | (341,547) | |||||||||||||||||||
Residential mortgage loans | (25,477) | 121,242 | (132,397) | 181,416 | |||||||||||||||||||
| Consumer loans | (7,196) | (1,626) | (20,929) | (7,630) | |||||||||||||||||||
| Mortgage loans receivable | (5,542) | — | — | — | |||||||||||||||||||
Derivative instruments | 183,923 | (37,227) | 758,620 | 168,978 | |||||||||||||||||||
| Total change in fair value of investments, net | $ | (234,040) | $ | 229,900 | $ | (381,159) | $ | (9,888) | |||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Gain (loss) on sale of real estate securities | $ | (118,079) | $ | (24,708) | $ | (119,636) | $ | (25,691) | |||||||||||||||
| Sale of acquired residential mortgage loans | (1,798) | 19,198 | 48,621 | 49,597 | |||||||||||||||||||
| Settlement of derivatives | 232,470 | (49,256) | 279,945 | (76,629) | |||||||||||||||||||
| Liquidated residential mortgage loans | (14,551) | (268) | (44,484) | 629 | |||||||||||||||||||
| Sale of REO | (1,268) | (239) | (3,359) | (4,185) | |||||||||||||||||||
| Extinguishment of debt | — | 89 | — | 83 | |||||||||||||||||||
| Other | (1,838) | (23,427) | (4,967) | (34,407) | |||||||||||||||||||
| Total gain (loss) on settlement of investments, net | $ | 94,936 | $ | (78,611) | $ | 156,120 | $ | (90,603) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Unrealized gain (loss) on secured notes and bonds payable | $ | 27,957 | $ | 5,638 | $ | 35,151 | $ | 1,216 | |||||||||||||||
| Rental revenue | 12,272 | 14,195 | 20,402 | 20,022 | |||||||||||||||||||
| Property and maintenance revenue | 32,035 | 25,104 | 66,340 | 45,010 | |||||||||||||||||||
| (Provision) reversal for credit losses on securities | (2,174) | 1,756 | (2,885) | 2,650 | |||||||||||||||||||
| Valuation and credit loss (provision) reversal on loans and real estate owned | (1,614) | 32,652 | (4,643) | 51,365 | |||||||||||||||||||
| Other income (loss) | (9,088) | (14,893) | (2,645) | (45,817) | |||||||||||||||||||
| Total other income (loss), net | $ | 59,388 | $ | 64,452 | $ | 111,720 | $ | 74,446 | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Accretion of net discount on securities and loans | $ | 8,219 | $ | 10,090 | $ | 13,512 | $ | 22,097 | |||||||||||||||
| Accretion of servicer advances receivable discount and servicer advance investments | 2,699 | (52) | 6,855 | 6,796 | |||||||||||||||||||
| Accretion of excess mortgage servicing rights income | 7,588 | (238) | 20,605 | 11,993 | |||||||||||||||||||
| Amortization of deferred financing costs | (2,722) | (3,776) | (5,382) | (8,377) | |||||||||||||||||||
| Amortization of discount on secured notes and bonds payable | — | (3) | — | (3) | |||||||||||||||||||
| Amortization of discount on corporate debt | (409) | (438) | (859) | (889) | |||||||||||||||||||
Total accretion and other amortization | $ | 15,375 | $ | 5,583 | $ | 34,731 | $ | 31,617 | |||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Origination | Servicing | MSR Related Investments | Mortgage Loans Receivable | Total | |||||||||||||||||||||||||
| Balance at December 31, 2021 | $ | 11,836 | $ | 12,540 | $ | 5,092 | $ | 55,731 | $ | 85,199 | |||||||||||||||||||
| Goodwill acquired | — | — | — | — | — | ||||||||||||||||||||||||
| Accumulated impairment loss | — | — | — | — | — | ||||||||||||||||||||||||
| Other adjustments | — | — | — | — | — | ||||||||||||||||||||||||
Balance at June 30, 2022 | $ | 11,836 | $ | 12,540 | $ | 5,092 | $ | 55,731 | $ | 85,199 | |||||||||||||||||||
| Estimated Useful Lives (Years) | June 30, 2022 | December 31, 2021 | |||||||||||||||
| Gross Intangible Assets | |||||||||||||||||
| Customer relationships | 3 to 9 | $ | 57,950 | $ | 57,949 | ||||||||||||
| Purchased technology | 3 to 5 | 109,908 | 93,241 | ||||||||||||||
| Trademarks / Trade names | 1 to 5 | 10,259 | 10,259 | ||||||||||||||
| 178,117 | 161,449 | ||||||||||||||||
| Accumulated Amortization | |||||||||||||||||
| Customer relationships | 10,547 | 6,574 | |||||||||||||||
| Purchased technology | 20,003 | 10,578 | |||||||||||||||
| Trademarks / Trade names | 1,867 | 1,164 | |||||||||||||||
| 32,417 | 18,316 | ||||||||||||||||
| Intangible Assets, Net | |||||||||||||||||
| Customer relationships | 47,403 | 51,375 | |||||||||||||||
| Purchased technology | 89,905 | 82,663 | |||||||||||||||
| Trademarks / Trade names | 8,392 | 9,095 | |||||||||||||||
| $ | 145,700 | $ | 143,133 | ||||||||||||||
| Year Ending | Amortization Expense | |||||||
| July 1 through December 31, 2022 | $ | 14,361 | ||||||
| 2023 | 26,031 | |||||||
| 2024 | 25,117 | |||||||
| 2025 | 20,139 | |||||||
| 2026 | 15,318 | |||||||
| 2027 and thereafter | 14,008 | |||||||
| $ | 114,974 | |||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Year Ending | Amount | |||||||
| July 1 through December 31, 2022 | $ | 20,196 | ||||||
| 2023 | 29,727 | |||||||
| 2024 | 22,084 | |||||||
| 2025 | 16,423 | |||||||
| 2026 | 10,456 | |||||||
| 2027 and thereafter | 34,414 | |||||||
| Total remaining undiscounted lease payments | 133,300 | |||||||
| Less: imputed interest | 15,570 | |||||||
| Total remaining discounted lease payments | $ | 117,730 | ||||||
| June 30, 2022 | December 31, 2021 | ||||||||||
| Weighted-average remaining lease term (years) | 5.6 | 5.5 | |||||||||
| Weighted-average discount rate | 4.0 | % | 4.1 | % | |||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Balance Sheet Location | June 30, 2022 | December 31, 2021 | |||||||||||||||
| Derivative assets | |||||||||||||||||
Interest rate swaps(A) | Other assets | $ | 104 | $ | 52 | ||||||||||||
| Interest rate lock commitments | Other assets | 73,784 | 114,871 | ||||||||||||||
| TBAs | Other assets | 120,619 | 15,472 | ||||||||||||||
| Options on treasury futures | Other assets | — | 7,778 | ||||||||||||||
| $ | 194,507 | $ | 138,173 | ||||||||||||||
| Derivative liabilities | |||||||||||||||||
| Interest rate lock commitments | Accrued expenses and other liabilities | $ | 12,210 | $ | 3,093 | ||||||||||||
| TBAs | Accrued expenses and other liabilities | 45,014 | 31,490 | ||||||||||||||
| $ | 57,224 | $ | 34,583 | ||||||||||||||
| June 30, 2022 | December 31, 2021 | ||||||||||
Interest rate swaps(A) | $ | 16,675,000 | $ | 11,490,000 | |||||||
| Interest rate lock commitments | 6,039,813 | 10,653,850 | |||||||||
TBAs, short position(B) | 16,676,041 | 22,697,706 | |||||||||
| Treasury futures | — | 314,500 | |||||||||
| Options on treasury futures | — | 3,200,000 | |||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Servicing revenue, net(A) | |||||||||||||||||||||||
| TBAs | $ | — | $ | 8,624 | $ | 3,300 | $ | (199) | |||||||||||||||
| Treasury futures | — | — | (1,746) | — | |||||||||||||||||||
| Options on treasury futures | — | — | 5,635 | — | |||||||||||||||||||
| — | 8,624 | 7,189 | (199) | ||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net(A) | |||||||||||||||||||||||
| Interest rate lock commitments | 77,481 | 55,299 | (50,204) | (179,683) | |||||||||||||||||||
| TBAs | (229,135) | (308,466) | 16,988 | 99,549 | |||||||||||||||||||
| (151,654) | (253,167) | (33,216) | (80,134) | ||||||||||||||||||||
Change in fair value of investments(A) | |||||||||||||||||||||||
| Interest rate swaps | 251,888 | (37,227) | 716,222 | 168,978 | |||||||||||||||||||
| TBAs | (67,965) | — | 42,398 | — | |||||||||||||||||||
| 183,923 | (37,227) | 758,620 | 168,978 | ||||||||||||||||||||
Gain (loss) on settlement of investments, net(B) | |||||||||||||||||||||||
| Interest rate swaps | (10,616) | (35,246) | (36,295) | (69,072) | |||||||||||||||||||
TBAs(C) | 243,086 | (14,010) | 316,240 | (7,557) | |||||||||||||||||||
| 232,470 | (49,256) | 279,945 | (76,629) | ||||||||||||||||||||
| Total gain (loss) | $ | 264,739 | $ | (331,026) | $ | 1,012,538 | $ | 12,016 | |||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Collateral | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Obligations/Collateral | Outstanding Face Amount | Carrying Value(A) | Final Stated Maturity(B) | Weighted Average Funding Cost | Weighted Average Life (Years) | Outstanding Face | Amortized Cost Basis | Carrying Value | Weighted Average Life (Years) | Carrying Value(A) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Financing Agreements(C) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase Agreements: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warehouse Credit Facilities-Residential Mortgage Loans(F) | $ | 4,910,944 | $ | 4,908,659 | Jul-22 to Sep-25 | 3.05 | % | 0.7 | $ | 5,646,909 | $ | 5,588,006 | $ | 5,479,872 | 20.3 | $ | 10,138,297 | |||||||||||||||||||||||||||||||||||||||||||||
Warehouse Credit Facilities-Mortgage Loans Receivable(E) | 1,161,223 | 1,161,223 | Dec-23 | 3.93 | % | 1.5 | 1,358,294 | 1,358,294 | 1,358,294 | 0.7 | 1,252,660 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS(D) | 7,040,807 | 7,040,807 | Jul-22 to Sep-22 | 1.18 | % | 0.1 | 7,994,763 | 8,216,954 | 7,061,674 | 9.6 | 8,386,538 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency RMBS(E) | 621,058 | 621,058 | Jul-22 to Oct-23 | 3.73 | % | 0.1 | 13,777,282 | 886,905 | 884,604 | 3.7 | 656,874 | |||||||||||||||||||||||||||||||||||||||||||||||||||
SFR properties(E) | 235,487 | 235,487 | Dec-22 | 3.15 | % | 0.5 | N/A | 330,159 | 330,159 | N/A | 158,515 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Secured Financing Agreements | 13,969,519 | 13,967,234 | 2.21 | % | 0.4 | 20,592,884 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Secured Notes and Bonds Payable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excess MSRs(G) | 228,497 | 228,497 | Aug-25 | 3.74 | % | 3.1 | 73,121,546 | 265,354 | 329,535 | 6.8 | 237,835 | |||||||||||||||||||||||||||||||||||||||||||||||||||
MSRs(H) | 4,666,798 | 4,657,497 | Dec-22 to Dec-26 | 4.60 | % | 2.7 | 527,279,143 | 6,414,614 | 8,279,291 | 7.5 | 4,234,771 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advance Investments(I) | 322,735 | 321,891 | Aug-22 to Mar-24 | 1.22 | % | 0.5 | 341,328 | 365,677 | 379,901 | 7.5 | 355,722 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advances(I) | 2,174,064 | 2,169,295 | Aug-22 to Nov-24 | 3.08 | % | 1.2 | 2,590,339 | 2,560,696 | 2,560,696 | 0.7 | 2,355,969 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Mortgage Loans(J) | 772,887 | 772,998 | Mar-24 to Jul-43 | 2.17 | % | 2.4 | 791,041 | 796,987 | 796,987 | 26.8 | 802,526 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Loans(K) | 384,596 | 357,663 | Sep-37 | 2.07 | % | 8.0 | 380,549 | 393,138 | 423,704 | 3.3 | 458,580 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| SFR Properties | 497,303 | 496,771 | Mar-23 to Jun-27 | 3.59 | % | 3.6 | N/A | 542,385 | 542,385 | N/A | 199,407 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans Receivable(L) | 324,062 | 317,414 | Dec-26 | 4.43 | % | 4.5 | 352,867 | 352,867 | 352,867 | 0.7 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Secured Notes and Bonds Payable | 9,370,942 | 9,322,026 | 3.75 | % | 2.6 | 8,644,810 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total/ Weighted Average | $ | 23,340,461 | $ | 23,289,260 | 2.84 | % | 1.3 | $ | 29,237,694 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Excess MSRs | MSRs | Servicer Advances(A) | Real Estate Securities | Residential Mortgage Loans and REO | Consumer Loans | SFR Properties | Mortgage Loans Receivable | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2021 | $ | 237,835 | $ | 4,234,771 | $ | 2,711,691 | $ | 9,043,412 | $ | 10,940,823 | $ | 458,580 | $ | 357,922 | $ | 1,252,660 | $ | 29,237,694 | |||||||||||||||||||||||||||||||||||
| Secured Financing Agreements | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowings | — | — | — | 21,936,667 | 49,939,478 | — | 188,390 | 867,224 | 72,931,759 | ||||||||||||||||||||||||||||||||||||||||||||
| Repayments | — | — | — | (23,318,214) | (55,170,640) | — | (111,418) | (958,661) | (79,558,933) | ||||||||||||||||||||||||||||||||||||||||||||
Capitalized deferred financing costs, net of amortization | — | — | — | — | 1,524 | — | — | — | 1,524 | ||||||||||||||||||||||||||||||||||||||||||||
| Secured Notes and Bonds Payable | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowings | — | 915,000 | 1,296,071 | — | — | — | 394,816 | 324,062 | 2,929,949 | ||||||||||||||||||||||||||||||||||||||||||||
| Repayments | (9,338) | (493,604) | (1,517,932) | — | (31,996) | (69,946) | (97,226) | — | (2,220,042) | ||||||||||||||||||||||||||||||||||||||||||||
| Unrealized gain on notes, fair value | — | — | — | — | 2,468 | (30,971) | — | (6,648) | (35,151) | ||||||||||||||||||||||||||||||||||||||||||||
Capitalized deferred financing costs, net of amortization | — | 1,330 | 1,356 | — | — | — | (226) | — | 2,460 | ||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2022 | $ | 228,497 | $ | 4,657,497 | $ | 2,491,186 | $ | 7,661,865 | $ | 5,681,657 | $ | 357,663 | $ | 732,258 | $ | 1,478,637 | $ | 23,289,260 | |||||||||||||||||||||||||||||||||||
| Year Ending | Nonrecourse(A) | Recourse(B) | Total | |||||||||||||||||
| July 1 through December 31, 2022 | $ | 506,597 | $ | 9,299,334 | $ | 9,805,931 | ||||||||||||||
| 2023 | 1,299,437 | 5,529,828 | 6,829,265 | |||||||||||||||||
| 2024 | 1,239,059 | 1,533,468 | 2,772,527 | |||||||||||||||||
| 2025 | — | 1,879,018 | 1,879,018 | |||||||||||||||||
| 2026 | 324,062 | 1,514,224 | 1,838,286 | |||||||||||||||||
| 2027 and thereafter | 765,314 | — | 765,314 | |||||||||||||||||
| $ | 4,134,469 | $ | 19,755,872 | $ | 23,890,341 | |||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Debt Obligations / Collateral | Borrowing Capacity | Balance Outstanding | Available Financing(A) | |||||||||||||||||
| Secured Financing Agreements | ||||||||||||||||||||
| Residential mortgage loans and REO | $ | 6,844,837 | $ | 3,044,826 | $ | 3,800,011 | ||||||||||||||
| Loan originations | 16,836,159 | 4,012,828 | 12,823,331 | |||||||||||||||||
| Secured Notes and Bonds Payable | ||||||||||||||||||||
| Excess MSRs | 286,380 | 228,497 | 57,883 | |||||||||||||||||
| MSRs | 5,870,641 | 4,666,798 | 1,203,843 | |||||||||||||||||
| Servicer advances | 3,911,341 | 2,496,799 | 1,414,542 | |||||||||||||||||
| Residential mortgage loans | 290,714 | 230,189 | 60,526 | |||||||||||||||||
| $ | 34,040,072 | $ | 14,679,937 | $ | 19,360,136 | |||||||||||||||
| Year | Price | |||||||
| 2022 | 103.125% | |||||||
| 2023 | 101.563% | |||||||
| 2024 and thereafter | 100.000% | |||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Fair Value | |||||||||||||||||||||||||||||||||||
| Principal Balance or Notional Amount | Carrying Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
Excess MSRs(A) | $ | 73,121,546 | $ | 337,050 | $ | — | $ | — | $ | 337,050 | $ | 337,050 | |||||||||||||||||||||||
MSRs and MSR financing receivables(A) | 548,095,165 | 8,626,409 | — | — | 8,626,409 | 8,626,409 | |||||||||||||||||||||||||||||
| Servicer advance investments | 341,328 | 379,901 | — | — | 379,901 | 379,901 | |||||||||||||||||||||||||||||
Real estate and other securities | 25,301,502 | 7,988,802 | — | 7,064,068 | 924,734 | 7,988,802 | |||||||||||||||||||||||||||||
Residential mortgage loans, held-for-sale | 131,937 | 117,053 | — | — | 118,299 | 118,299 | |||||||||||||||||||||||||||||
Residential mortgage loans, held-for-sale, at fair value | 5,388,033 | 5,293,937 | — | 4,736,171 | 557,766 | 5,293,937 | |||||||||||||||||||||||||||||
Residential mortgage loans, held-for-investment, at fair value | 576,750 | 510,744 | — | — | 510,744 | 510,744 | |||||||||||||||||||||||||||||
Residential mortgage loans subject to repurchase | 1,758,509 | 1,758,509 | — | 1,758,509 | — | 1,758,509 | |||||||||||||||||||||||||||||
| Consumer loans | 380,603 | 423,735 | — | — | 423,735 | 423,735 | |||||||||||||||||||||||||||||
Mortgage loans receivable(B) | 1,756,079 | 1,756,079 | — | 352,867 | 1,403,212 | 1,756,079 | |||||||||||||||||||||||||||||
| Notes receivable | 61,785 | 52,692 | — | — | 52,692 | 52,692 | |||||||||||||||||||||||||||||
Loans receivable | 164,321 | 164,901 | — | — | 164,901 | 164,901 | |||||||||||||||||||||||||||||
| Cash, cash equivalents and restricted cash | 1,944,808 | 1,944,808 | 1,944,808 | — | — | 1,944,808 | |||||||||||||||||||||||||||||
Other assets(C) | N/A | 28,965 | 1,754 | — | 27,211 | 28,965 | |||||||||||||||||||||||||||||
Derivative assets | 34,903,771 | 194,507 | — | 120,723 | 73,784 | 194,507 | |||||||||||||||||||||||||||||
| $ | 29,578,092 | $ | 1,946,562 | $ | 14,032,338 | $ | 13,600,438 | $ | 29,579,338 | ||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Secured financing agreements | $ | 13,969,519 | $ | 13,967,234 | $ | — | $ | 13,967,234 | $ | — | $ | 13,967,234 | |||||||||||||||||||||||
Secured notes and bonds payable(D) | 9,370,942 | 9,322,026 | — | 1,074,062 | 8,447,185 | 9,521,247 | |||||||||||||||||||||||||||||
Unsecured senior notes, net of issuance costs | 544,167 | 544,167 | — | — | 478,841 | 478,841 | |||||||||||||||||||||||||||||
Residential mortgage loan repurchase liability | 1,758,509 | 1,758,509 | — | 1,758,509 | — | 1,758,509 | |||||||||||||||||||||||||||||
| Derivative liabilities | 4,487,083 | 57,224 | — | 45,014 | 12,210 | 57,224 | |||||||||||||||||||||||||||||
| $ | 25,649,160 | $ | — | $ | 16,844,819 | $ | 8,938,236 | $ | 25,783,055 | ||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Level 3 | ||||||||||||||||||||||||||||||||
Excess MSRs(A)(B) | MSRs and MSR Financing Receivables(A) | Servicer Advance Investments | Non-Agency RMBS | Derivatives(C) | Residential Mortgage Loans | Consumer Loans | Notes and Loans Receivable | Mortgage Loans Receivable | Total | |||||||||||||||||||||||
| Balance at December 31, 2021 | $ | 344,947 | $ | 6,858,803 | $ | 421,807 | $ | 951,942 | $ | 111,778 | $ | 2,423,337 | $ | 507,291 | $ | 290,180 | $ | 1,515,762 | $ | 13,425,847 | ||||||||||||
| Transfers | ||||||||||||||||||||||||||||||||
| Transfers from Level 3 | — | — | — | — | — | (776,774) | — | (1,000) | (405,286) | (1,183,060) | ||||||||||||||||||||||
| Transfers to Level 3 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
| Gain (loss) included in net income | ||||||||||||||||||||||||||||||||
Credit losses on securities(D) | — | — | — | (776) | — | — | — | — | (776) | |||||||||||||||||||||||
Change in fair value of excess MSRs(D) | (1,564) | — | — | — | — | — | — | — | (1,564) | |||||||||||||||||||||||
Change in fair value of excess MSRs, equity method investees(D) | 1,859 | — | — | — | — | — | — | — | 1,859 | |||||||||||||||||||||||
Servicing revenue, net(E) | ||||||||||||||||||||||||||||||||
Included in servicing revenue(E) | — | 981,581 | — | — | — | — | — | — | 981,581 | |||||||||||||||||||||||
| Change in fair value of: | ||||||||||||||||||||||||||||||||
| Servicer advance investments | — | — | (1,797) | — | — | — | — | — | (1,797) | |||||||||||||||||||||||
| Residential mortgage loans | — | — | — | — | — | (132,397) | — | (132,397) | ||||||||||||||||||||||||
| Consumer loans | — | — | — | — | — | — | (20,964) | — | (20,964) | |||||||||||||||||||||||
| Gain (loss) on settlement of investments, net | 37 | — | — | (1,560) | — | — | — | — | (43,868) | (45,391) | ||||||||||||||||||||||
Other income (loss), net(D) | — | — | — | (36,803) | (50,204) | (2,734) | — | (9,628) | (99,369) | |||||||||||||||||||||||
Gains (losses) included in OCI(F) | — | — | — | (25,620) | — | — | — | (25,620) | ||||||||||||||||||||||||
| Interest income | 20,605 | — | 6,854 | 5,818 | — | — | 7,695 | 6,792 | 47,764 | |||||||||||||||||||||||
| Purchases, sales and repayments | ||||||||||||||||||||||||||||||||
Purchases, net(G) | — | (613) | 500,000 | 148,590 | — | 1,586,374 | 14,350 | — | 2,248,701 | |||||||||||||||||||||||
| Proceeds from sales | (997) | (4,284) | — | — | (1,865,401) | — | — | (1,870,682) | ||||||||||||||||||||||||
| Proceeds from repayments | (27,837) | — | (546,963) | (116,857) | — | (162,733) | — | (68,751) | (704,398) | (1,627,539) | ||||||||||||||||||||||
| Originations and other | — | 790,922 | — | — | — | (1,162) | (84,637) | — | 1,041,002 | 1,746,125 | ||||||||||||||||||||||
| Balance at June 30, 2022 | $ | 337,050 | $ | 8,626,409 | $ | 379,901 | $ | 924,734 | $ | 61,574 | $ | 1,068,510 | $ | 423,735 | $ | 217,593 | $ | 1,403,212 | $ | 13,442,718 | ||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Level 3 | ||||||||
| Asset-Backed Securities Issued | ||||||||
| Balance at December 31, 2021 | $ | 511,107 | ||||||
| Transfers | ||||||||
| Gains (losses) included in net income | ||||||||
Other income(A) | (28,503) | |||||||
| Purchases, sales and repayments | ||||||||
| Proceeds from sales | — | |||||||
| Payments | (101,942) | |||||||
| Other | — | |||||||
| Balance at June 30, 2022 | $ | 380,662 | ||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
Significant Inputs(A) | ||||||||||||||||||||||||||||||||
Prepayment Rate(B) | Delinquency(C) | Recapture Rate(D) | Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps)(E) | Collateral Weighted Average Maturity (Years)(F) | ||||||||||||||||||||||||||||
| Excess MSRs Directly Held (Note 4) | ||||||||||||||||||||||||||||||||
| Agency | ||||||||||||||||||||||||||||||||
| Original Pools | 3.3% – 6.0% (4.7%) | 0.1% – 6.1% (0.7%) | 0.6% – 8.1% (2.1%) | 15 – 31 (21) | 11 – 20 (18) | |||||||||||||||||||||||||||
| Recaptured Pools | 3.3% – 5.4% (4.3%) | 0.1% – 1.4% (0.5%) | —% – 7.3% (1.4%) | 20 – 27 (23) | 18 – 23 (22) | |||||||||||||||||||||||||||
3.3% – 6.0% (4.5%) | 0.1% – 6.1% (0.6%) | —% – 8.1% (1.8%) | 15 – 31 (22) | 11 – 23 (20) | ||||||||||||||||||||||||||||
Non-Agency(G) | ||||||||||||||||||||||||||||||||
| Mr. Cooper and SLS Serviced: | ||||||||||||||||||||||||||||||||
| Original Pools | 3.1% – 9.1% (5.7%) | 1.2% – 8.6% (6.2%) | —% – 9.8% (3.2%) | 6 – 25 (15) | 17 – 29 (23) | |||||||||||||||||||||||||||
| Recaptured Pools | 2.1% – 3.1% (2.5%) | 0.1% – 0.2% (0.2%) | 0.6% – 5.0% (1.0%) | 22 – 25 (23) | 21 – 23 (23) | |||||||||||||||||||||||||||
2.1% – 9.1% (5.0%) | 0.1% – 8.6% (6.2%) | —% – 9.8% (2.7%) | 6 – 25 (17) | 17 – 29 (23) | ||||||||||||||||||||||||||||
Total/Weighted Average—Excess MSRs Directly Held | 2.1% – 9.1% (4.7%) | 0.1% – 8.6% (2.7%) | —% – 9.8% (2.2%) | 6 – 31 (19) | 11 – 29 (21) | |||||||||||||||||||||||||||
Excess MSRs Held through Equity Method Investees (Note 4) | ||||||||||||||||||||||||||||||||
| Agency | ||||||||||||||||||||||||||||||||
| Original Pools | 4.7% – 5.9% (5.3%) | 0.5% – 1.2% (0.7%) | 1.1% – 3.0% (2.3%) | 15 – 25 (19) | 16 – 18 (17) | |||||||||||||||||||||||||||
| Recaptured Pools | 4.5% – 4.9% (4.6%) | 0.2% – 1.2% (0.7%) | 0.7% – 2.5% (1.7%) | 21 – 26 (24) | 20 – 22 (21) | |||||||||||||||||||||||||||
Total/Weighted Average—Excess MSRs Held through Investees | 4.5% – 5.9% (4.9%) | 0.2% – 1.2% (0.7%) | 0.7% – 3.0% (1.9%) | 15 – 26 (22) | 16 – 22 (20) | |||||||||||||||||||||||||||
Total/Weighted Average—Excess MSRs All Pools | 2.1% – 9.1% (4.8%) | 0.1% – 8.6% (2.0%) | —% – 9.8% (2.1%) | 6 – 31 (20) | 11 – 29 (21) | |||||||||||||||||||||||||||
| MSRs and MSR Financing Receivables | ||||||||||||||||||||||||||||||||
Agency(H) | 0.5% – 83.2% (7.4%) | 0.1% – 75.0% (1.5%) | —% – 60.3% (5.8%) | 1 – 100 (29) | 0 – 40 (23) | |||||||||||||||||||||||||||
Non-Agency(H) | 1.8% – 83.3% (7.8%) | 0.4% – 66.7% (12.1%) | 1.7% – 34.6% (8.8%) | 19 – 213 (48) | 0 – 31 (24) | |||||||||||||||||||||||||||
Ginnie Mae(H) | 4.2% – 82.3% (9.6%) | 0.1% – 75.0% (7.2%) | 2.4% – 14.4% (7.1%) | 18 – 82 (40) | 0 – 37 (28) | |||||||||||||||||||||||||||
Total/Weighted Average—MSRs and MSR Financing Receivables | 0.5% – 83.3% (7.9%) | 0.1% – 75.0% (3.8%) | —% – 60.3% (10.0%) | 1 – 213 (33) | 0 – 40 (24) | |||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Significant Inputs | |||||||||||||||||||||||||||||||||||
| Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | Prepayment Rate(A) | Delinquency | Mortgage Servicing Amount(B) | Discount Rate | Collateral Weighted Average Maturity (Years)(C) | ||||||||||||||||||||||||||||||
| June 30, 2022 | 0.9% – 1.8% (1.8%) | 4.5% – 6.0% (5.9%) | 3.6% – 15.5% (15.2%) | 17.4 – 19.8 (19.8) | bps | 5.2% – 5.7% (5.2%) | 22.0 – 22.2 (22.0) | ||||||||||||||||||||||||||||
| Fair Value | ||||||||||||||||||||||||||||||||||||||
| Asset Type | Outstanding Face Amount | Amortized Cost Basis | Multiple Quotes(A) | Single Quote(B) | Total | Level | ||||||||||||||||||||||||||||||||
| Agency RMBS | $ | 7,996,986 | $ | 8,219,305 | $ | 7,064,068 | $ | — | $ | 7,064,068 | 2 | |||||||||||||||||||||||||||
Non-Agency RMBS(C) | 17,304,516 | 921,858 | 924,734 | — | 924,734 | 3 | ||||||||||||||||||||||||||||||||
| Total | $ | 25,301,502 | $ | 9,141,163 | $ | 7,988,802 | $ | — | $ | 7,988,802 | ||||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Fair Value | Discount Rate | Prepayment Rate(a) | CDR(b) | Loss Severity(c) | ||||||||||||||||||||||||||||
| Non-Agency RMBS | $ | 489,732 | 3.5% – 15.0% (5.2%) | 0.0% – 25.0% (8.9%) | 0.0% – 12.0% (1.5%) | 0.0% – 88.0% (26.3%) | ||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | ||||||||||||||||||||||||||||
| Acquired loans | $ | 536,592 | 4.3% – 7.5% (4.6%) | 2.1% – 16.1% (9.4%) | 0.2% – 18.8% (1.1%) | 4.0% – 57.4% (26.5%) | ||||||||||||||||||||||||||
| Originated loans | 21,174 | |||||||||||||||||||||||||||||||
| Residential mortgage loans held-for-sale, at fair value | $ | 557,766 | ||||||||||||||||||||||||||||||
| Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | ||||||||||||||||||||||||||||
| Residential mortgage loans held-for-investment, at fair value | $ | 510,744 | 3.3% – 7.5% (7.3%) | 2.1% – 20.0% (7.8%) | 0.3% – 18.8% (4.7%) | 4.0% – 94.5% (68.4%) | ||||||||||||||||||||||||||
| Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | ||||||||||||||||||||||||||||
| Consumer loans, held-for-investment, at fair value | $ | 423,735 | 0.0% – 8.0% (8.0%) | 0.0% – 23.0% (23.0%) | 0.0% – 4.0% (4.0%) | 0.0% – 52.0% (52.0%) | ||||||||||||||||||||||||||
| Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | ||||||||||||||||||||||||||||
| Mortgage loans receivable, at fair value | $ | 1,403,212 | 5.5% – 7.5% (6.5%) | N/A | N/A | N/A | ||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Fair Value | Loan Funding Probability | Fair Value of Initial Servicing Rights (Bps) | ||||||||||||||||||
| IRLCs, net | $ | 61,574 | 0.0% – 100.0% (80.6%) | 2.4 – 417.2 (187.0) | ||||||||||||||||
| Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | ||||||||||||||||||||||||||||
| Asset-backed securities issued | $ | 380,662 | 3.3% – 5.4% (5.2%) | 22.6% – 40.0% (23.6%) | 0.3% – 4.0% (3.8%) | 20.0% – 92.4% (88.0%) | ||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Fair Value and Carrying Value | Discount Rate | Weighted Average Life (Years)(A) | Prepayment Rate | CDR(B) | Loss Severity(C) | |||||||||||||||||||||||||||||||||
| Performing loans | $ | 57,750 | 7.0% – 7.0% (7.0%) | 4.6 – 5.0 (4.9) | 5.6% – 8.7% (6.3%) | 2.2% – 4.9% (2.8%) | 48.2% – 51.4% (50.6%) | |||||||||||||||||||||||||||||||
| Non-performing loans | 13,597 | 7.5% – 7.5% (7.5%) | 4.4 – 4.6 (4.6) | 2.1% – 2.6% (2.6%) | 16.5% – 18.8% (16.5%) | 32.6% – 39.6% (34.1%) | ||||||||||||||||||||||||||||||||
| Total/weighted average | $ | 71,347 | 7.1% | 4.9 | 5.6% | 5.4% | 47.5% | |||||||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| The Buyer | Shelter Joint Ventures | Residential Mortgage Loans | Consumer Loan SPVs | Servicer Advance Facilities | MSR Financing Facilities | Mortgage Loans Receivable | Total | ||||||||||||||||||||||
| June 30, 2022 | |||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Mortgage servicing rights, at fair value | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 617,658 | $ | — | $ | 617,658 | |||||||||||||
| Servicer advance investments, at fair value | 367,653 | — | — | — | — | — | — | 367,653 | |||||||||||||||||||||
| Residential mortgage loans, held-for-investment, at fair value | — | — | 26,479 | — | — | — | — | 26,479 | |||||||||||||||||||||
| Residential mortgage loans, held-for-sale, at fair value | — | — | 735,235 | — | — | — | — | 735,235 | |||||||||||||||||||||
| Consumer loans | — | — | — | 423,735 | — | — | — | 423,735 | |||||||||||||||||||||
| Mortgage loans receivable | — | — | — | — | — | — | 352,867 | 352,867 | |||||||||||||||||||||
| Cash and cash equivalents | 36,479 | 33,372 | 27,676 | — | — | — | — | 97,527 | |||||||||||||||||||||
| Restricted cash | 2,092 | — | 224,940 | 6,902 | — | — | 4,771 | 238,705 | |||||||||||||||||||||
| Servicer advance receivable | — | — | — | — | 98,331 | — | — | 98,331 | |||||||||||||||||||||
| Other assets | 9 | 1,347 | 266,756 | 5,827 | 30,253 | 315,050 | 87 | 619,329 | |||||||||||||||||||||
| Total Assets | $ | 406,233 | $ | 34,719 | $ | 1,281,086 | $ | 436,464 | $ | 128,584 | $ | 932,708 | $ | 357,725 | $ | 3,577,519 | |||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
Secured financing agreements(A) | $ | — | $ | — | $ | 451,596 | $ | — | $ | — | $ | — | $ | — | $ | 451,596 | |||||||||||||
Secured notes and bonds payable(A) | 315,294 | — | 771,584 | 357,663 | 85,949 | 513,907 | 317,414 | 2,361,811 | |||||||||||||||||||||
| Accrued expenses and other liabilities | 929 | 7,786 | 38,270 | 922 | 41,551 | 162 | 309 | 89,929 | |||||||||||||||||||||
| Total Liabilities | $ | 316,223 | $ | 7,786 | $ | 1,261,450 | $ | 358,585 | $ | 127,500 | $ | 514,069 | $ | 317,723 | $ | 2,903,336 | |||||||||||||
| December 31, 2021 | |||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Mortgage servicing rights, at fair value | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 403,301 | $ | — | $ | 403,301 | |||||||||||||
| Servicer advance investments, at fair value | 409,475 | — | — | — | — | — | — | 409,475 | |||||||||||||||||||||
| Residential mortgage loans, held-for-investment, at fair value | — | — | 93,226 | — | — | — | — | 93,226 | |||||||||||||||||||||
| Residential mortgage loans, held-for-sale, at fair value | — | — | 798,644 | — | — | — | — | 798,644 | |||||||||||||||||||||
| Consumer loans | — | — | — | 507,291 | — | — | — | 507,291 | |||||||||||||||||||||
| Cash and cash equivalents | 33,777 | 37,369 | 2,882 | — | — | — | — | 74,028 | |||||||||||||||||||||
| Restricted cash | 2,210 | — | 171 | 7,249 | — | — | — | 9,630 | |||||||||||||||||||||
| Servicer advance receivable | — | — | — | — | 94,306 | — | — | 94,306 | |||||||||||||||||||||
| Other assets | 9 | 903 | 2,902 | 6,851 | 24,699 | 332,521 | — | 367,885 | |||||||||||||||||||||
| Total Assets | $ | 445,471 | $ | 38,272 | $ | 897,825 | $ | 521,391 | $ | 119,005 | $ | 735,822 | $ | — | $ | 2,757,786 | |||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Secured financing agreements | $ | — | $ | — | $ | 24,683 | $ | — | $ | — | $ | — | $ | — | $ | 24,683 | |||||||||||||
Secured notes and bonds payable(A) | 348,670 | — | 802,526 | 458,580 | 93,145 | 367,871 | — | 2,070,792 | |||||||||||||||||||||
| Accrued expenses and other liabilities | 806 | 6,588 | 10,163 | 862 | 27,771 | 134 | — | 46,324 | |||||||||||||||||||||
| Total Liabilities | $ | 349,476 | $ | 6,588 | $ | 837,372 | $ | 459,442 | $ | 120,916 | $ | 368,005 | $ | — | $ | 2,141,799 | |||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| As of and for the Six Months Ended June 30, | ||||||||||||||
| 2022 | 2021 | |||||||||||||
| Residential mortgage loan UPB and other collateral | $ | 11,481,471 | $ | 11,855,823 | ||||||||||
Weighted average delinquency(A) | 3.4 | % | 5.3 | % | ||||||||||
| Net credit losses | $ | 129,047 | $ | 105,652 | ||||||||||
Face amount of debt held by third parties(B) | $ | 10,584,528 | $ | 10,929,618 | ||||||||||
Carrying value of bonds retained by Rithm Capital(C)(D) | $ | 905,695 | $ | 1,014,469 | ||||||||||
| Cash flows received by Rithm Capital on these bonds | $ | 124,942 | $ | 381,606 | ||||||||||
| June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
The Buyer(A) | Shelter Joint Ventures | Consumer Loan Companies | The Buyer(A) | Shelter Joint Ventures | Consumer Loan Companies | ||||||||||||||||||||||||||||||
| Total consolidated equity | $ | 90,011 | $ | 26,933 | $ | 98,205 | $ | 95,995 | $ | 31,684 | $ | 83,597 | |||||||||||||||||||||||
| Others’ ownership interest | 10.7 | % | 49.5 | % | 46.5 | % | 10.7 | % | 49.5 | % | 46.5 | % | |||||||||||||||||||||||
| Others’ interest in equity of consolidated subsidiary | $ | 9,613 | $ | 13,345 | $ | 46,213 | $ | 10,251 | $ | 15,683 | $ | 39,414 | |||||||||||||||||||||||
| Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||||||||||||||||||
The Buyer(A) | Shelter Joint Ventures | Consumer Loan Companies | The Buyer(A) | Shelter Joint Ventures | Consumer Loan Companies | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | 380 | $ | 2,597 | $ | 27,642 | $ | (6,817) | $ | 6,516 | $ | 18,608 | |||||||||||||||||||||||
| Others’ ownership interest | 10.7 | % | 49.5 | % | 46.5 | % | 26.8 | % | 49.5 | % | 46.5 | % | |||||||||||||||||||||||
| Others’ interest in net income of consolidated subsidiary | $ | 41 | $ | 1,287 | $ | 12,854 | $ | (1,825) | $ | 3,225 | $ | 8,653 | |||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||||||||||||||||||
The Buyer(A) | Shelter Joint Ventures | Consumer Loan Companies | The Buyer(A) | Shelter Joint Ventures | Consumer Loan Companies | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | 2,515 | $ | 3,419 | $ | 38,340 | $ | (1,932) | $ | 13,639 | $ | 28,417 | |||||||||||||||||||||||
| Others’ ownership interest | 10.7 | % | 49.5 | % | 46.5 | % | 26.8 | % | 49.5 | % | 46.5 | % | |||||||||||||||||||||||
| Others’ interest in net income of consolidated subsidiary | $ | 269 | $ | 1,694 | $ | 17,828 | $ | (517) | $ | 6,750 | $ | 13,214 | |||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Dividends Declared per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of Shares | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Series | June 30, 2022 | December 31, 2021 | Liquidation Preference(A) | Issuance Discount | Carrying Value(B) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Series A, 7.50% issued July 2019(C) | 6,210 | 6,210 | $ | 155,250 | 3.15 | % | $ | 150,026 | $ | 0.47 | $ | 0.47 | $ | 0.94 | $ | 0.94 | ||||||||||||||||||||||||||||||||||||||||
Series B, 7.125% issued August 2019(C) | 11,300 | 11,300 | 282,500 | 3.15 | % | 273,418 | 0.45 | 0.45 | 0.89 | 0.89 | ||||||||||||||||||||||||||||||||||||||||||||||
Series C, 6.375% issued February 2020(C) | 15,928 | 16,100 | 398,209 | 3.15 | % | 385,734 | 0.40 | 0.40 | 0.80 | 0.80 | ||||||||||||||||||||||||||||||||||||||||||||||
Series D, 7.00%, issued September 2021(D) | 18,600 | 18,600 | 465,000 | 3.15 | % | 449,489 | 0.44 | — | 0.88 | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Total | 52,038 | 52,210 | $ | 1,300,959 | $ | 1,258,667 | $ | 1.76 | $ | 1.32 | $ | 3.51 | $ | 2.63 | ||||||||||||||||||||||||||||||||||||||||||
| Declaration Date | Payment Date | Per Share | Total Amounts Distributed (millions) | |||||||||||||||||
| Quarterly Dividend | ||||||||||||||||||||
| March 24, 2021 | April 2021 | $ | 0.20 | $ | 82.9 | |||||||||||||||
| June 16, 2021 | August 2021 | 0.20 | 93.3 | |||||||||||||||||
| August 23, 2021 | October 2021 | 0.25 | 116.6 | |||||||||||||||||
| December 15, 2021 | January 2022 | 0.25 | 116.7 | |||||||||||||||||
| March 21, 2022 | April 2022 | 0.25 | 116.7 | |||||||||||||||||
| June 17, 2022 | August 2022 | 0.25 | 116.7 | |||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Number of Warrants (in millions) | Weighted Average Exercise Price (per share) | |||||||||||||
Outstanding warrants – December 31, 2021 | 43.4 | $ | 6.49 | |||||||||||
| Granted | — | — | ||||||||||||
| Exercised | — | — | ||||||||||||
| Expired | — | — | ||||||||||||
Outstanding warrants – June 30, 2022 | 43.4 | 6.30 | (A) | |||||||||||
| Held by the Former Manager | 19,985,826 | ||||
| Issued to the Former Manager and subsequently assigned to certain of the Former Manager’s employees | 1,486,164 | ||||
| Issued to the independent directors | 6,000 | ||||
| Total | 21,477,990 | ||||
| Recipient | Date of Grant/ Exercise(A) | Number of Unexercised Options | Options Exercisable as of June 30, 2022 | Weighted Average Exercise Price(B) | Intrinsic Value of Exercisable Options as of June 30, 2022 (millions) | ||||||||||||||||||||||||
| Directors | Various | 6,000 | 6,000 | $ | 12.85 | $ | — | ||||||||||||||||||||||
Former Manager(C) | 2017 | 1,130,916 | 1,130,916 | 13.43 | — | ||||||||||||||||||||||||
Former Manager(C) | 2018 | 5,320,000 | 5,320,000 | 16.15 | — | ||||||||||||||||||||||||
Former Manager(C) | 2019 | 6,351,000 | 6,351,000 | 15.54 | — | ||||||||||||||||||||||||
Former Manager(C) | 2020 | 1,619,739 | 1,295,792 | 16.88 | — | ||||||||||||||||||||||||
Former Manager(C) | 2021 | 7,050,335 | 2,975,995 | 9.90 | — | ||||||||||||||||||||||||
| Outstanding | 21,477,990 | 17,079,703 | |||||||||||||||||||||||||||
| Date of Grant to Former Manager | Range of Exercise Prices | Total Unexercised Inception to Date | ||||||||||||
| 2019 | $14.61 to $15.84 | 1,270,200 | ||||||||||||
| 2020 | $16.49 to $16.88 | 215,964 | ||||||||||||
| Total | 1,486,164 | |||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Amount | Weighted Average Exercise Price | |||||||||||||
Outstanding options – December 31, 2021 | 21,478,990 | $ | — | |||||||||||
| Granted | — | — | ||||||||||||
| Exercised | — | — | ||||||||||||
| Expired | (1,000) | 12.01 | ||||||||||||
Outstanding options – June 30, 2022 | 21,477,990 | See table above | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Net income | $ | 33,331 | $ | 145,726 | $ | 723,262 | $ | 447,062 | |||||||||||||||
Noncontrolling interests in income of consolidated subsidiaries | 14,182 | 10,053 | 19,791 | 19,447 | |||||||||||||||||||
| Dividends on preferred stock | 22,427 | 14,358 | 44,888 | 28,716 | |||||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | (3,278) | $ | 121,315 | $ | 658,583 | $ | 398,899 | |||||||||||||||
| Basic weighted average shares of common stock outstanding | 466,804,548 | 456,312,486 | 466,795,119 | 435,668,683 | |||||||||||||||||||
Dilutive effect of stock options and common stock purchase warrants(A) | — | 16,416,759 | 17,698,989 | 15,560,982 | |||||||||||||||||||
| Diluted weighted average shares of common stock outstanding | 466,804,548 | 472,729,245 | 484,494,108 | 451,229,665 | |||||||||||||||||||
| Basic earnings per share attributable to common stockholders | $ | (0.01) | $ | 0.27 | $ | 1.41 | $ | 0.92 | |||||||||||||||
| Diluted earnings per share attributable to common stockholders | $ | (0.01) | $ | 0.26 | $ | 1.36 | $ | 0.88 | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Stock options and common stock purchase warrants | 17,757,843 | — | — | — | |||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2022 | December 31, 2021 | ||||||||||
| Management fees | $ | — | $ | 17,188 | |||||||
| Expense reimbursements and other | — | 631 | |||||||||
| Total | $ | — | $ | 17,819 | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Management fees | $ | 20,985 | $ | 23,677 | $ | 46,174 | $ | 45,839 | |||||||||||||||
Expense reimbursements(A) | 104 | 125 | 229 | 250 | |||||||||||||||||||
| Total | $ | 21,089 | $ | 23,802 | $ | 46,403 | $ | 46,089 | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Current: | |||||||||||||||||||||||
| Federal | $ | (1,199) | $ | (6,694) | $ | — | $ | 4,119 | |||||||||||||||
| State and local | (222) | (1,348) | 45 | 868 | |||||||||||||||||||
| Total current income tax expense (benefit) | (1,421) | (8,042) | 45 | 4,987 | |||||||||||||||||||
| Deferred: | |||||||||||||||||||||||
| Federal | 62,330 | 5,843 | 231,566 | 77,152 | |||||||||||||||||||
| State and local | 11,781 | 1,122 | 43,868 | 15,043 | |||||||||||||||||||
| Total deferred income tax expense | 74,111 | 6,965 | 275,434 | 92,195 | |||||||||||||||||||
| Total income tax expense (benefit) | $ | 72,690 | $ | (1,077) | $ | 275,479 | $ | 97,182 | |||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| $ in thousands except per share amounts | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | ||||||||||||||||||||||||
| Total equity | $ | 7,062,998 | $ | 7,184,712 | $ | 6,669,380 | $ | 6,627,113 | $ | 6,166,151 | |||||||||||||||||||
| Less: Preferred Stock Series A, B, C, and D | 1,258,667 | 1,258,667 | 1,262,481 | 1,262,498 | 812,992 | ||||||||||||||||||||||||
| Less: Noncontrolling interests of consolidated subsidiaries | 69,171 | 62,078 | 65,348 | 71,023 | 94,100 | ||||||||||||||||||||||||
| Total equity attributable to common stock | $ | 5,735,160 | $ | 5,863,967 | $ | 5,341,551 | $ | 5,293,592 | $ | 5,259,059 | |||||||||||||||||||
| Common stock outstanding | 466,856,753 | 466,786,526 | 466,758,266 | 466,579,920 | 466,579,920 | ||||||||||||||||||||||||
| Book value per common share | $ | 12.28 | $ | 12.56 | $ | 11.44 | $ | 11.35 | $ | 11.27 | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
June 30, 2022(A) | March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | |||||||||||||||||||||||||
| Real GDP | (0.9) | % | (1.6) | % | 6.9 | % | 2.3 | % | 6.7 | % | |||||||||||||||||||
| June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | |||||||||||||||||||||||||
| Unemployment rate | 3.6 | % | 3.6 | % | 3.9 | % | 4.7 | % | 5.9 | % | |||||||||||||||||||
| June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | |||||||||||||||||||||||||
| 10-year U.S. Treasury rate | 3.0 | % | 2.3 | % | 1.5 | % | 1.5 | % | 1.5 | % | |||||||||||||||||||
| 30-year fixed mortgage rate | 5.5 | % | 4.2 | % | 3.1 | % | 2.9 | % | 3.0 | % | |||||||||||||||||||
| Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Origination | Servicing | MSR Related Investments | Total Origination and Servicing | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments | $ | 3,349,312 | $ | 7,156,949 | $ | 2,864,161 | $ | 13,370,422 | $ | 7,988,802 | $ | 2,821,898 | $ | 423,735 | $ | 1,756,079 | $ | — | $ | 26,360,936 | ||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 170,412 | 653,879 | 247,676 | 1,071,967 | 317,818 | 1,529 | 1,730 | 34,353 | 83,451 | 1,510,848 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restricted cash | 252,894 | 75,715 | 55,989 | 384,598 | 10,610 | 3,672 | 19,748 | 15,332 | — | 433,960 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 669,315 | 2,343,393 | 2,325,958 | 5,338,666 | 176,823 | 212,571 | 32,837 | 164,169 | 237,838 | 6,162,904 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | 11,836 | 12,540 | 5,092 | 29,468 | — | — | — | 55,731 | — | 85,199 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 4,453,769 | $ | 10,242,476 | $ | 5,498,876 | $ | 20,195,121 | $ | 8,494,053 | $ | 3,039,670 | $ | 478,050 | $ | 2,025,664 | $ | 321,289 | $ | 34,553,847 | ||||||||||||||||||||||||||||||||||||||||||
| Debt | $ | 3,421,076 | $ | 4,650,100 | $ | 3,341,447 | $ | 11,412,623 | $ | 7,660,612 | $ | 2,319,649 | $ | 357,663 | $ | 1,478,636 | $ | 604,244 | $ | 23,833,427 | ||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 363,425 | 2,424,304 | 150,330 | 2,938,059 | 10,932 | 339,357 | 998 | 21,588 | 346,488 | 3,657,422 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 3,784,501 | 7,074,404 | 3,491,777 | 14,350,682 | 7,671,544 | 2,659,006 | 358,661 | 1,500,224 | 950,732 | 27,490,849 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total equity | 669,268 | 3,168,072 | 2,007,099 | 5,844,439 | 822,509 | 380,664 | 119,389 | 525,440 | (629,443) | 7,062,998 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests in equity of consolidated subsidiaries | 13,345 | — | 9,613 | 22,958 | — | — | 46,213 | — | — | 69,171 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Rithm Capital stockholders’ equity | $ | 655,923 | $ | 3,168,072 | $ | 1,997,486 | $ | 5,821,481 | $ | 822,509 | $ | 380,664 | $ | 73,176 | $ | 525,440 | $ | (629,443) | $ | 6,993,827 | ||||||||||||||||||||||||||||||||||||||||||
| Investments in equity method investees | $ | — | $ | — | $ | 80,834 | $ | 80,834 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 80,834 | ||||||||||||||||||||||||||||||||||||||||||
| Unpaid Principal Balance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | June 30, 2022 | % of Total | March 31, 2022 | % of Total | June 30, 2022 | % of Total | June 30, 2021 | % of Total | QoQ Change | YoY Change | |||||||||||||||||||||||||||||||||||||||||||||||||
| Production by Channel | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Direct to Consumer | $ | 2,164 | 11 | % | $ | 4,425 | 16 | % | $ | 6,589 | 14 | % | $ | 12,078 | 24 | % | $ | (2,261) | $ | (5,489) | |||||||||||||||||||||||||||||||||||||||
| Retail / Joint Venture | 6,103 | 32 | % | 6,404 | 24 | % | 12,507 | 27 | % | 2,056 | 4 | % | (301) | 10,451 | |||||||||||||||||||||||||||||||||||||||||||||
| Wholesale | 3,197 | 17 | % | 4,646 | 17 | % | 7,843 | 17 | % | 5,085 | 10 | % | (1,449) | 2,758 | |||||||||||||||||||||||||||||||||||||||||||||
| Correspondent | 7,591 | 40 | % | 11,401 | 43 | % | 18,992 | 41 | % | 31,473 | 62 | % | (3,810) | (12,481) | |||||||||||||||||||||||||||||||||||||||||||||
| Total Production by Channel | $ | 19,055 | 100 | % | $ | 26,876 | 100 | % | $ | 45,931 | 100 | % | $ | 50,692 | 100 | % | $ | (7,821) | $ | (4,761) | |||||||||||||||||||||||||||||||||||||||
| Production by Product | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Agency | $ | 10,248 | 53 | % | $ | 18,086 | 67 | % | $ | 28,334 | 62 | % | $ | 37,232 | 73 | % | $ | (7,838) | $ | (8,898) | |||||||||||||||||||||||||||||||||||||||
| Government | 7,621 | 40 | % | 7,576 | 28 | % | 15,197 | 33 | % | 13,106 | 26 | % | 45 | 2,091 | |||||||||||||||||||||||||||||||||||||||||||||
| Non-QM | 293 | 2 | % | 549 | 2 | % | 842 | 2 | % | 63 | — | % | (256) | 779 | |||||||||||||||||||||||||||||||||||||||||||||
| Non-Agency | 747 | 4 | % | 515 | 2 | % | 1,262 | 3 | % | 258 | 1 | % | 232 | 1,004 | |||||||||||||||||||||||||||||||||||||||||||||
| Other | 146 | 1 | % | 150 | 1 | % | 296 | 1 | % | 33 | — | % | (4) | 263 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Production by Product | $ | 19,055 | 100 | % | $ | 26,876 | 100 | % | $ | 45,931 | 100 | % | $ | 50,692 | 100 | % | $ | (7,821) | $ | (4,761) | |||||||||||||||||||||||||||||||||||||||
| % Purchase | 75 | % | 54 | % | 63 | % | 31 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| % Refinance | 25 | % | 46 | % | 37 | % | 69 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| (dollars in thousands) | June 30, 2022 | March 31, 2022 | June 30, 2022 | June 30, 2021 | QoQ Change | YoY Change | |||||||||||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net(A)(B)(C)(D) | $ | 302,610 | $ | 407,269 | $ | 709,879 | $ | 652,962 | $ | (104,659) | $ | 56,917 | |||||||||||||||||||||||
| Pull through adjusted lock volume | $ | 15,520,818 | $ | 26,683,082 | $ | 42,203,900 | $ | 47,403,733 | $ | (11,162,264) | $ | (5,199,833) | |||||||||||||||||||||||
| Gain on originated residential mortgage loans, as a percentage of pull through adjusted lock volume, by channel: | |||||||||||||||||||||||||||||||||||
| Direct to Consumer | 5.10 | % | 3.14 | % | 3.61 | % | 3.45 | % | |||||||||||||||||||||||||||
| Retail / Joint Venture | 3.36 | % | 2.85 | % | 3.07 | % | 4.58 | % | |||||||||||||||||||||||||||
| Wholesale | 1.24 | % | 0.90 | % | 1.01 | % | 1.37 | % | |||||||||||||||||||||||||||
| Correspondent | 0.39 | % | 0.13 | % | 0.22 | % | 0.30 | % | |||||||||||||||||||||||||||
| Total gain on originated residential mortgage loans, as a percentage of pull through adjusted lock volume | 1.95 | % | 1.53 | % | 1.68 | % | 1.38 | % | |||||||||||||||||||||||||||
| Unpaid Principal Balance | |||||||||||||||||||||||||||||
| (in millions) | June 30, 2022 | March 31, 2022 | June 30, 2021 | QoQ Change | YoY Change | ||||||||||||||||||||||||
| Performing Servicing | |||||||||||||||||||||||||||||
| MSR Assets | $ | 389,762 | $ | 387,394 | $ | 207,881 | $ | 2,368 | $ | 181,881 | |||||||||||||||||||
| Residential Whole Loans | 3,832 | 4,889 | 6,301 | (1,057) | (2,469) | ||||||||||||||||||||||||
| Third Party | 436 | 304 | — | 132 | 436 | ||||||||||||||||||||||||
| Total Performing Servicing | 394,030 | 392,587 | 214,182 | 1,443 | 179,848 | ||||||||||||||||||||||||
| Special Servicing | |||||||||||||||||||||||||||||
| MSR Assets | 10,138 | 11,336 | 13,866 | (1,198) | (3,728) | ||||||||||||||||||||||||
| Residential Whole Loans | 7,127 | 7,093 | 1,450 | 34 | 5,677 | ||||||||||||||||||||||||
| Third Party | 86,754 | 85,875 | 76,409 | 879 | 10,345 | ||||||||||||||||||||||||
| Total Special Servicing | 104,019 | 104,304 | 91,725 | (285) | 12,294 | ||||||||||||||||||||||||
| Total Servicing Portfolio | $ | 498,049 | $ | 496,891 | $ | 305,907 | $ | 1,158 | $ | 192,142 | |||||||||||||||||||
| Agency Servicing | |||||||||||||||||||||||||||||
| MSR Assets | $ | 279,694 | $ | 281,456 | $ | 157,848 | $ | (1,762) | $ | 121,846 | |||||||||||||||||||
| Third Party | 9,774 | 10,735 | 13,155 | (961) | (3,381) | ||||||||||||||||||||||||
| Total Agency Servicing | 289,468 | 292,191 | 171,003 | (2,723) | 118,465 | ||||||||||||||||||||||||
| Government-insured Servicing | |||||||||||||||||||||||||||||
| MSR Assets | 115,449 | 111,693 | 58,604 | 3,756 | 56,845 | ||||||||||||||||||||||||
| Total Government Servicing | 115,449 | 111,693 | 58,604 | 3,756 | 56,845 | ||||||||||||||||||||||||
| Non-Agency (Private Label) Servicing | |||||||||||||||||||||||||||||
| MSR Assets | 4,757 | 5,581 | 5,295 | (824) | (538) | ||||||||||||||||||||||||
| Residential Whole Loans | 10,959 | 11,982 | 7,751 | (1,023) | 3,208 | ||||||||||||||||||||||||
| Third Party | 77,416 | 75,444 | 63,254 | 1,972 | 14,162 | ||||||||||||||||||||||||
| Total Non-Agency (Private Label) Servicing | 93,132 | 93,007 | 76,300 | 125 | 16,832 | ||||||||||||||||||||||||
| Total Servicing Portfolio | $ | 498,049 | $ | 496,891 | $ | 305,907 | $ | 1,158 | $ | 192,142 | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| (in thousands) | June 30, 2022 | March 31, 2022 | June 30, 2022 | June 30, 2021 | QoQ Change | YoY Change | |||||||||||||||||||||||||||||
| Base Servicing Fees | |||||||||||||||||||||||||||||||||||
| MSR Assets | $ | 300,676 | $ | 281,110 | $ | 581,786 | $ | 90,439 | $ | 19,566 | $ | 491,347 | |||||||||||||||||||||||
| Residential Whole Loans | 3,019 | 3,389 | 6,408 | 2,240 | (370) | 4,168 | |||||||||||||||||||||||||||||
| Third Party | 23,069 | 23,653 | 46,722 | 52,520 | (584) | (5,798) | |||||||||||||||||||||||||||||
| Total Base Servicing Fees | 326,764 | 308,152 | 634,916 | 145,199 | 18,612 | 489,717 | |||||||||||||||||||||||||||||
| Other Fees | |||||||||||||||||||||||||||||||||||
| Incentive fees | 16,207 | 21,244 | 37,451 | 40,598 | (5,037) | (3,147) | |||||||||||||||||||||||||||||
| Ancillary fees | 13,628 | 13,451 | 27,079 | 22,501 | 177 | 4,578 | |||||||||||||||||||||||||||||
| Boarding fees | 1,287 | 1,808 | 3,095 | 4,446 | (521) | (1,351) | |||||||||||||||||||||||||||||
| Other fees | 6,812 | 3,750 | 10,562 | 13,235 | 3,062 | (2,673) | |||||||||||||||||||||||||||||
Total Other Fees(A) | 37,934 | 40,253 | 78,187 | 80,780 | (2,319) | (2,593) | |||||||||||||||||||||||||||||
| Total Servicing Fees | $ | 364,698 | $ | 348,405 | $ | 713,103 | $ | 225,979 | $ | 16,293 | $ | 487,124 | |||||||||||||||||||||||
| (dollars in millions) | Current UPB | Weighted Average MSR (bps) | Carrying Value | |||||||||||||||||
| GSE | $ | 374,752.2 | 29 | bps | $ | 5,846.0 | ||||||||||||||
| Non-Agency | 57,260.5 | 48 | 808.5 | |||||||||||||||||
| Ginnie Mae | 116,082.5 | 40 | 1,971.9 | |||||||||||||||||
| Total | $ | 548,095.2 | 33 | bps | $ | 8,626.4 | ||||||||||||||
| Collateral Characteristics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Carrying Amount | Current Principal Balance | Number of Loans | WA FICO Score(A) | WA Coupon | WA Maturity (months) | Average Loan Age (months) | Adjustable Rate Mortgage %(B) | Three Month Average CPR(C) | Three Month Average CRR(D) | Three Month Average CDR(E) | Three Month Average Recapture Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GSE | $ | 5,845,943 | $ | 374,752,192 | 2,021,375 | 755 | 3.6 | % | 281 | 49 | 1.5 | % | 10.1 | % | 9.9 | % | 0.2 | % | 10.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-Agency | 808,528 | 57,260,465 | 509,507 | 637 | 4.2 | % | 290 | 192 | 10.4 | % | 11.3 | % | 9.6 | % | 1.8 | % | 5.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ginnie Mae | 1,971,938 | 116,082,508 | 505,627 | 696 | 3.2 | % | 331 | 25 | 0.7 | % | 11.7 | % | 11.6 | % | — | % | 10.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 8,626,409 | $ | 548,095,165 | 3,036,509 | 730 | 3.6 | % | 293 | 59 | 2.2 | % | 10.6 | % | 10.2 | % | 0.3 | % | 9.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Collateral Characteristics | |||||||||||||||||||||||||||||||||||
Delinquency 30 Days(F) | Delinquency 60 Days(F) | Delinquency 90+ Days(F) | Loans in Foreclosure | Real Estate Owned | Loans in Bankruptcy | ||||||||||||||||||||||||||||||
| GSE | 0.9 | % | 0.2 | % | 0.7 | % | 0.2 | % | — | % | 0.1 | % | |||||||||||||||||||||||
| Non-Agency | 7.4 | % | 2.9 | % | 4.9 | % | 5.8 | % | 0.8 | % | 2.3 | % | |||||||||||||||||||||||
| Ginnie Mae | 3.2 | % | 0.9 | % | 1.8 | % | 0.3 | % | — | % | 0.3 | % | |||||||||||||||||||||||
| Total | 2.1 | % | 0.6 | % | 1.4 | % | 0.8 | % | 0.1 | % | 0.4 | % | |||||||||||||||||||||||
MSR Component(A) | Excess MSR | ||||||||||||||||||||||||||||||||||
| Current UPB (billions) | Weighted Average MSR (bps) | Weighted Average Excess MSR (bps) | Interest in Excess MSR (%) | Carrying Value (millions) | |||||||||||||||||||||||||||||||
| Agency | $ | 24.3 | 29 | bps | 21 | bps | 32.5% - 66.7% | $ | 128.8 | ||||||||||||||||||||||||||
Non-Agency(B) | 27.9 | 34 | 15 | 33.3% - 100% | 127.4 | ||||||||||||||||||||||||||||||
| Total/Weighted Average | $ | 52.2 | 32 | bps | 18 | bps | $ | 256.2 | |||||||||||||||||||||||||||
MSR Component(A) | |||||||||||||||||||||||||||||||||||||||||
| Current UPB (billions) | Weighted Average MSR (bps) | Weighted Average Excess MSR (bps) | Rithm Capital Interest in Investee (%) | Investee Interest in Excess MSR (%) | Rithm Capital Effective Ownership (%) | Investee Carrying Value (millions) | |||||||||||||||||||||||||||||||||||
| Agency | $ | 20.9 | 33 | bps | 22 | bps | 50.0 | % | 66.7 | % | 33.3 | % | $ | 149.6 | |||||||||||||||||||||||||||
| Collateral Characteristics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Carrying Amount | Current Principal Balance | Number of Loans | WA FICO Score(A) | WA Coupon | WA Maturity (months) | Average Loan Age (months) | Adjustable Rate Mortgage %(B) | Three Month Average CPR(C) | Three Month Average CRR(D) | Three Month Average CDR(E) | Three Month Average Recapture Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Agency | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Original Pools | $ | 66,679 | $ | 14,339,070 | 126,555 | 732 | 4.5 | % | 221 | 150 | 1.4 | % | 17.4 | % | 17.1 | % | 0.4 | % | 23.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Recaptured Loans | 62,114 | 9,965,418 | 63,153 | 738 | 3.8 | % | 259 | 50 | — | % | 15.2 | % | 15.1 | % | 0.1 | % | 38.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| $ | 128,793 | $ | 24,304,488 | 189,708 | 735 | 4.2 | % | 237 | 108 | 0.7 | % | 16.5 | % | 16.3 | % | 0.3 | % | 29.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency(F) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Cooper and SLS Serviced: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original Pools | $ | 99,301 | $ | 24,034,490 | 141,347 | 679 | 4.2 | % | 266 | 195 | 8.0 | % | 17.4 | % | 15.8 | % | 1.9 | % | 18.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Recaptured Loans | 28,122 | 3,844,125 | 18,271 | 743 | 3.6 | % | 273 | 30 | — | % | 12.8 | % | 12.8 | % | — | % | 39.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| $ | 127,423 | $ | 27,878,615 | 159,618 | 688 | 4.2 | % | 267 | 173 | 6.2 | % | 16.8 | % | 15.5 | % | 1.6 | % | 20.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average(H) | $ | 256,216 | $ | 52,183,103 | 349,326 | 709 | 4.2 | % | 253 | 143 | 3.5 | % | 16.7 | % | 15.8 | % | 1.0 | % | 24.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Collateral Characteristics | |||||||||||||||||||||||||||||||||||
| Delinquency | Loans in Foreclosure | Real Estate Owned | Loans in Bankruptcy | ||||||||||||||||||||||||||||||||
30 Days(G) | 60 Days(G) | 90+ Days(G) | |||||||||||||||||||||||||||||||||
| Agency | |||||||||||||||||||||||||||||||||||
| Original Pools | 1.9 | % | 0.5 | % | 1.8 | % | 0.6 | % | 0.1 | % | 0.1 | % | |||||||||||||||||||||||
| Recaptured Loans | 1.1 | % | 0.3 | % | 1.2 | % | 0.1 | % | — | % | — | % | |||||||||||||||||||||||
| 1.6 | % | 0.4 | % | 1.6 | % | 0.4 | % | 0.1 | % | 0.1 | % | ||||||||||||||||||||||||
Non-Agency(F) | |||||||||||||||||||||||||||||||||||
Mr. Cooper and SLS Serviced: | |||||||||||||||||||||||||||||||||||
| Original Pools | 10.2 | % | 2.7 | % | 3.5 | % | 5.3 | % | 0.4 | % | 1.5 | % | |||||||||||||||||||||||
Recaptured Loans | 1.4 | % | 0.2 | % | 0.7 | % | 0.1 | % | — | % | — | % | |||||||||||||||||||||||
| 9.1 | % | 2.4 | % | 3.2 | % | 4.6 | % | 0.4 | % | 1.3 | % | ||||||||||||||||||||||||
Total/Weighted Average(H) | 5.7 | % | 1.5 | % | 2.4 | % | 2.7 | % | 0.2 | % | 0.8 | % | |||||||||||||||||||||||
| Collateral Characteristics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Carrying Amount | Current Principal Balance | Rithm Capital Effective Ownership (%) | Number of Loans | WA FICO Score(A) | WA Coupon | WA Maturity (months) | Average Loan Age (months) | Adjustable Rate Mortgage %(B) | Three Month Average CPR(C) | Three Month Average CRR(D) | Three Month Average CDR(E) | Three Month Average Recapture Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Agency | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Original Pools | $ | 57,748 | $ | 10,116,726 | 33.3 | % | 117,937 | 717 | 5.1 | % | 210 | 169 | 1.1 | % | 18.4 | % | 17.5 | % | 1.1 | % | 27.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Recaptured Loans | 91,850 | 10,821,717 | 33.3 | % | 83,252 | 724 | 3.9 | % | 255 | 59 | — | % | 16.4 | % | 16.3 | % | 0.3 | % | 45.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average(G) | $ | 149,598 | $ | 20,938,443 | 201,189 | 721 | 4.5 | % | 233 | 112 | 1.1 | % | 17.4 | % | 16.9 | % | 0.7 | % | 36.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Collateral Characteristics | |||||||||||||||||||||||||||||||||||
| Delinquency | Loans in Foreclosure | Real Estate Owned | Loans in Bankruptcy | ||||||||||||||||||||||||||||||||
30 Days(F) | 60 Days(F) | 90+ Days(F) | |||||||||||||||||||||||||||||||||
| Agency | |||||||||||||||||||||||||||||||||||
| Original Pools | 2.6 | % | 0.6 | % | 1.9 | % | 0.9 | % | 0.2 | % | 0.1 | % | |||||||||||||||||||||||
| Recaptured Loans | 1.7 | % | 0.4 | % | 1.3 | % | 0.2 | % | — | % | 0.1 | % | |||||||||||||||||||||||
Total/Weighted Average(G) | 2.1 | % | 0.5 | % | 1.6 | % | 0.5 | % | 0.1 | % | 0.1 | % | |||||||||||||||||||||||
| June 30, 2022 | |||||||||||||||||||||||||||||
| Amortized Cost Basis | Carrying Value(A) | UPB of Underlying Residential Mortgage Loans | Outstanding Servicer Advances | Servicer Advances to UPB of Underlying Residential Mortgage Loans | |||||||||||||||||||||||||
| Mr. Cooper and SLS serviced pools | $ | 365,677 | $ | 379,901 | $ | 18,224,076 | $ | 341,328 | 1.9 | % | |||||||||||||||||||
| Six Months Ended June 30, 2022 | Loan-to-Value (“LTV”)(A) | Cost of Funds(B) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average Discount Rate | Weighted Average Life (Years)(C) | Change in Fair Value Recorded in Other Income (Loss) | Face Amount of Secured Notes and Bonds Payable | Gross | Net(D) | Gross | Net | |||||||||||||||||||||||||||||||||||||||||||
Servicer advance investments(E) | 5.2 | % | 7.5 | $ | (1,797) | $ | 322,735 | 91.7 | % | 91.0 | % | 1.2 | % | 1.2 | % | |||||||||||||||||||||||||||||||||||
| June 30, 2022 | ||||||||
| Principal and interest advances | $ | 64,203 | ||||||
| Escrow advances (taxes and insurance advances) | 153,991 | |||||||
| Foreclosure advances | 123,134 | |||||||
| Total | $ | 341,328 | ||||||
| Gross Unrealized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset Type | Outstanding Face Amount | Amortized Cost Basis | Percentage of Total Amortized Cost Basis | Gains | Losses | Carrying Value(A) | Count | Weighted Average Life (Years) | 3-Month CPR(B) | Outstanding Repurchase Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS | $ | 7,996,986 | $ | 8,219,305 | 100.0 | % | $ | 66 | $ | (1,155,303) | $ | 7,064,068 | 40 | 9.6 | 9.0 | % | $ | 7,040,807 | ||||||||||||||||||||||||||||||||||||||||||||
Net Interest Spread(A) | |||||
| Weighted Average Asset Yield | 2.19 | % | |||
| Weighted Average Funding Cost | 1.18 | % | |||
| Net Interest Spread | 1.01 | % | |||
| Asset Type | Outstanding Face Amount | Amortized Cost Basis | Gross Unrealized | Carrying Value(A) | Outstanding Repurchase Agreements | |||||||||||||||||||||||||||||||||
| Gains | Losses | |||||||||||||||||||||||||||||||||||||
| Non-Agency RMBS | $ | 17,304,516 | $ | 921,858 | $ | 98,272 | $ | (95,396) | $ | 924,734 | $ | 607,269 | ||||||||||||||||||||||||||
Collateral Characteristics(A)(G) | ||||||||||||||||||||||||||||||||
Vintage(B) | Average Loan Age (years) | Collateral Factor(H) | 3-Month CPR(I) | Delinquency(J) | Cumulative Losses to Date | |||||||||||||||||||||||||||
| Pre-2008 | 12.7 | 0.16 | 5.4 | % | 7.6 | % | 8.7 | % | ||||||||||||||||||||||||
| 2008 and later | 11.4 | 0.62 | 12.5 | % | 3.1 | % | 0.5 | % | ||||||||||||||||||||||||
| Total/weighted average | 11.5 | 0.61 | 12.4 | % | 3.2 | % | 20.6 | % | ||||||||||||||||||||||||
Net Interest Spread(A) | |||||
| Weighted average asset yield | 3.94 | % | |||
| Weighted average funding cost | 3.73 | % | |||
| Net interest spread | 0.21 | % | |||
| Outstanding Face Amount | Carrying Value | Loan Count | Weighted Average Yield | Weighted Average Life (Years)(A) | ||||||||||||||||||||||||||||
Total residential mortgage loans, held-for-investment, at fair value(B) | $ | 576,750 | $ | 510,744 | 10,273 | 7.1 | % | 4.4 | ||||||||||||||||||||||||
Acquired performing loans(C) | 102,734 | 92,430 | 2,689 | 6.7 | % | 4.9 | ||||||||||||||||||||||||||
Acquired non-performing loans(D) | 29,203 | 24,623 | 217 | 6.3 | % | 5.2 | ||||||||||||||||||||||||||
| Total residential mortgage loans, held-for-sale, at lower of cost or market | $ | 131,937 | $ | 117,053 | 2,906 | 6.6 | % | 5.0 | ||||||||||||||||||||||||
Acquired performing loans(C)(E) | $ | 1,759,976 | $ | 1,661,890 | 10,370 | 4.7 | % | 13.3 | ||||||||||||||||||||||||
Acquired non-performing loans(D)(E) | 308,514.0 | 282,734 | 1,546 | 4.4 | % | 12.5 | ||||||||||||||||||||||||||
| Originated loans | 3,319,543 | 3,349,312 | 4,751 | 5.1 | % | 28.9 | ||||||||||||||||||||||||||
| Total residential mortgage loans, held-for-sale, at fair value | $ | 5,388,033 | $ | 5,293,936 | 16,667 | 4.9 | % | 22.9 | ||||||||||||||||||||||||
| Collateral Characteristics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| UPB | Personal Unsecured Loans % | Personal Homeowner Loans % | Number of Loans | Weighted Average Original FICO Score(A) | Weighted Average Coupon | Adjustable Rate Loan % | Average Loan Age (months) | Average Expected Life (Years) | Delinquency 30 Days(B) | Delinquency 60 Days(B) | Delinquency 90+ Days(B) | 12-Month CRR(C) | 12-Month CDR(D) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer loans | $ | 380,603 | 56.8 | % | 43.2 | % | 62,409 | 690 | 17.6 | % | 13.3 | % | 210 | 3.2 | 1.2 | % | 0.9 | % | 1.5 | % | 23.1 | % | 4.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of SFR Properties | % of Total SFR Properties | Net Book Value | % of Total Net Book Value | Average Gross Book Value per Property | % of Rented SFR Properties | Average Monthly Rent | Average Sq. Ft. | ||||||||||||||||||||||||||||||||||||||||
| Alabama | 91 | 2.5 | % | $ | 17,097 | 1.8 | % | $ | 188 | 80.0 | % | $ | 1,465 | 1,570 | |||||||||||||||||||||||||||||||||
| Arizona | 153 | 4.2 | % | 58,979 | 6.4 | % | 385 | 46.0 | % | 2,017 | 1,553 | ||||||||||||||||||||||||||||||||||||
| Florida | 830 | 23.0 | % | 220,341 | 23.8 | % | 265 | 74.0 | % | 1,813 | 1,454 | ||||||||||||||||||||||||||||||||||||
| Georgia | 733 | 20.3 | % | 169,947 | 18.3 | % | 232 | 65.0 | % | 1,775 | 1,784 | ||||||||||||||||||||||||||||||||||||
| Indiana | 115 | 3.2 | % | 25,001 | 2.7 | % | 217 | 63.0 | % | 1,582 | 1,623 | ||||||||||||||||||||||||||||||||||||
| Mississippi | 101 | 2.8 | % | 16,875 | 1.8 | % | 167 | 92.0 | % | 1,563 | 1,667 | ||||||||||||||||||||||||||||||||||||
| Missouri | 350 | 9.7 | % | 67,484 | 7.3 | % | 193 | 63.0 | % | 1,514 | 1,471 | ||||||||||||||||||||||||||||||||||||
| Nevada | 109 | 3.0 | % | 35,757 | 3.9 | % | 328 | 73.0 | % | 1,825 | 1,455 | ||||||||||||||||||||||||||||||||||||
| North Carolina | 430 | 11.9 | % | 125,173 | 13.5 | % | 291 | 74.0 | % | 1,732 | 1,537 | ||||||||||||||||||||||||||||||||||||
| Oklahoma | 44 | 1.2 | % | 9,458 | 1.0 | % | 215 | 43.0 | % | 1,560 | 1,615 | ||||||||||||||||||||||||||||||||||||
| Tennessee | 85 | 2.4 | % | 28,323 | 3.1 | % | 333 | 86.0 | % | 1,873 | 1,500 | ||||||||||||||||||||||||||||||||||||
| Texas | 565 | 15.7 | % | 152,284 | 16.4 | % | 270 | 59.0 | % | 1,858 | 1,794 | ||||||||||||||||||||||||||||||||||||
| Other U.S. | 2 | 0.1 | % | 510 | 0.1 | % | 255 | 50.0 | % | 1,715 | 1,585 | ||||||||||||||||||||||||||||||||||||
| Total/Weighted Average | 3,608 | 100.0 | % | $ | 927,229 | 100.0 | % | $ | 257 | 74.0 | % | $ | 1,758 | 1,607 | |||||||||||||||||||||||||||||||||
| Origination Date | Maturity Date | Weighted Average Interest Rate | Outstanding Principal Balance | ||||||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | ||||||||||||||||||||||||||||
| 2022-SFR1 | Jan-2022 | Feb-2027 | 3.5 | % | $ | 267,116 | $ | 267,326 | |||||||||||||||||||||
| Total securitizations | $ | 267,116 | $ | 267,326 | |||||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | ||||||||||||||||||||||
| Number of Properties | Net Book Value | Number of Properties | Net Book Value | ||||||||||||||||||||
| 2022-SFR1 | 1,199 | $ | 252,567 | 1,200 | $ | 253,420 | |||||||||||||||||
| Total encumbered properties | 1,199 | $ | 252,567 | 1,200 | $ | 253,420 | |||||||||||||||||
| Loans originated | $ | 1,306,100 | |||
Loans repaid(A) | $ | 785,535 | |||
| Number of loans originated | 862 | ||||
| Unpaid principal balance | $ | 1,756,079 | |||
| Total commitment | $ | 2,471,180 | |||
| Average total commitment | $ | 1,697 | |||
Weighted average contractual interest(B) | 7.5 | % | |||
| Number of Loans | % | Total Commitment | % | Weighted Average Committed Loan Balance to Value(A) | |||||||||||||||||||||||||||||||
| Construction | 568 | 39.0 | % | $ | 1,407,075 | 56.9 | % | 76.2% | |||||||||||||||||||||||||||
| Bridge | 455 | 31.3 | % | 724,814 | 29.3 | % | 77.1% | ||||||||||||||||||||||||||||
| Renovation | 433 | 29.7 | % | 339,291 | 13.7 | % | 77.9% | ||||||||||||||||||||||||||||
| 1,456 | 100.0 | % | $ | 2,471,180 | 99.9 | % | |||||||||||||||||||||||||||||
| Number of Loans | % | Total Commitment | % | |||||||||||||||||||||||
| California | 676 | 46.4 | % | $ | 1,414,344 | 57.2 | % | |||||||||||||||||||
| Washington | 149 | 10.2 | % | 234,231 | 9.5 | % | ||||||||||||||||||||
| New York | 40 | 2.7 | % | 128,520 | 5.2 | % | ||||||||||||||||||||
| Other U.S. | 591 | 40.7 | % | 694,085 | 28.1 | % | ||||||||||||||||||||
| 1,456 | 100.0 | % | $ | 2,471,180 | 100.0 | % | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | June 30, 2022 | June 30, 2021 | QoQ Change | YoY Change | ||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||
| Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | 469,478 | $ | 456,400 | $ | 925,878 | $ | 704,460 | $ | 13,078 | $ | 221,418 | |||||||||||||||||||||||
| Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(180,265), $(200,325), $(380,590) and $(637,448), respectively) | 336,563 | 575,393 | 911,956 | (225,709) | (238,830) | 1,137,665 | |||||||||||||||||||||||||||||
| Servicing revenue, net | 806,041 | 1,031,793 | 1,837,834 | 478,751 | (225,752) | 1,359,083 | |||||||||||||||||||||||||||||
| Interest income | 211,648 | 225,413 | 437,061 | 402,709 | (13,765) | 34,352 | |||||||||||||||||||||||||||||
| Gain on originated residential mortgage loans, held-for-sale, net | 304,791 | 471,996 | 776,787 | 690,333 | (167,205) | 86,454 | |||||||||||||||||||||||||||||
| 1,322,480 | 1,729,202 | 3,051,682 | 1,571,793 | (406,722) | 1,479,889 | ||||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||
| Interest expense and warehouse line fees | 150,829 | 138,833 | 289,662 | 225,444 | 11,996 | 64,218 | |||||||||||||||||||||||||||||
| General and administrative | 225,271 | 246,238 | 471,509 | 336,847 | (20,967) | 134,662 | |||||||||||||||||||||||||||||
| Compensation and benefits | 339,658 | 392,619 | 732,277 | 393,374 | (52,961) | 338,903 | |||||||||||||||||||||||||||||
| Management fee to affiliate | 20,985 | 25,189 | 46,174 | 45,839 | (4,204) | 335 | |||||||||||||||||||||||||||||
| Termination fee to affiliate | 400,000 | — | 400,000 | — | 400,000 | 400,000 | |||||||||||||||||||||||||||||
| 1,136,743 | 802,879 | 1,939,622 | 1,001,504 | 333,864 | 938,118 | ||||||||||||||||||||||||||||||
| Other Income (Loss) | |||||||||||||||||||||||||||||||||||
| Change in fair value of investments, net | (234,040) | (147,119) | (381,159) | (9,888) | (86,921) | (371,271) | |||||||||||||||||||||||||||||
| Gain (loss) on settlement of investments, net | 94,936 | 61,184 | 156,120 | (90,603) | 33,752 | 246,723 | |||||||||||||||||||||||||||||
| Other income (loss), net | 59,388 | 52,332 | 111,720 | 74,446 | 7,056 | 37,274 | |||||||||||||||||||||||||||||
| (79,716) | (33,603) | (113,319) | (26,045) | (46,113) | (87,274) | ||||||||||||||||||||||||||||||
| Income Before Income Taxes | 106,021 | 892,720 | 998,741 | 544,244 | (786,699) | 454,497 | |||||||||||||||||||||||||||||
| Income tax expense (benefit) | 72,690 | 202,789 | 275,479 | 97,182 | (130,099) | 178,297 | |||||||||||||||||||||||||||||
| Net Income (Loss) | $ | 33,331 | $ | 689,931 | $ | 723,262 | $ | 447,062 | $ | (656,600) | $ | 276,200 | |||||||||||||||||||||||
| Noncontrolling interests in income (loss) of consolidated subsidiaries | 14,182 | 5,609 | 19,791 | 19,447 | 8,573 | 344 | |||||||||||||||||||||||||||||
| Dividends on preferred stock | 22,427 | 22,461 | 44,888 | 28,716 | (34) | 16,172 | |||||||||||||||||||||||||||||
| Net Income (Loss) Attributable to Common Stockholders | $ | (3,278) | $ | 661,861 | $ | 658,583 | $ | 398,899 | $ | (665,139) | $ | 259,684 | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | June 30, 2022 | June 30, 2021 | QoQ Change | YoY Change | ||||||||||||||||||||||||||||||
| Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | 434,789 | $ | 421,555 | $ | 856,344 | $ | 619,264 | $ | 13,234 | $ | 237,080 | |||||||||||||||||||||||
| Ancillary and other fees | 34,689 | 34,845 | 69,534 | 85,196 | (156) | (15,662) | |||||||||||||||||||||||||||||
| Servicing fee revenue and fees | 469,478 | 456,400 | 925,878 | 704,460 | 13,078 | 221,418 | |||||||||||||||||||||||||||||
| Change in fair value due to: | |||||||||||||||||||||||||||||||||||
| Realization of cash flows | (180,265) | (200,325) | (380,590) | (637,448) | 20,060 | 256,858 | |||||||||||||||||||||||||||||
Change in valuation inputs and assumptions(A) | 514,955 | 845,037 | 1,359,992 | 425,980 | (330,082) | 934,012 | |||||||||||||||||||||||||||||
| Change in fair value of derivative instruments | — | 7,189 | 7,189 | (199) | (7,189) | 7,388 | |||||||||||||||||||||||||||||
| (Gain) loss realized | 1,873 | 306 | 2,179 | (16,349) | 1,567 | 18,528 | |||||||||||||||||||||||||||||
| Gain (loss) on settlement of derivative instruments | — | (76,814) | (76,814) | 2,307 | 76,814 | (79,121) | |||||||||||||||||||||||||||||
| Servicing revenue, net | $ | 806,041 | $ | 1,031,793 | $ | 1,837,834 | $ | 478,751 | $ | (225,752) | $ | 1,359,083 | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | June 30, 2022 | June 30, 2021 | QoQ Change | YoY Change | ||||||||||||||||||||||||||||||
| Changes in interest and prepayment rates | $ | 749,624 | $ | 957,518 | $ | 1,707,142 | $ | 313,785 | $ | (207,894) | $ | 1,393,357 | |||||||||||||||||||||||
| Changes in discount rates | (65,729) | (65,317) | (131,046) | 113,305 | (412) | (244,351) | |||||||||||||||||||||||||||||
| Changes in other factors | (168,940) | (47,164) | (216,104) | (1,110) | (121,776) | (214,994) | |||||||||||||||||||||||||||||
| Change in valuation and assumptions | $ | 514,955 | $ | 845,037 | $ | 1,359,992 | $ | 425,980 | $ | (330,082) | $ | 934,012 | |||||||||||||||||||||||
| Unpaid Principal Balance | |||||||||||||||||||||||||||||
| (dollars in millions) | June 30, 2022 | March 31, 2022 | June 30, 2021 | QoQ Change | YoY Change | ||||||||||||||||||||||||
| GSE | $ | 374,752 | $ | 376,795 | $ | 269,343 | $ | (2,043) | $ | 105,409 | |||||||||||||||||||
| Non-Agency | 57,261 | 60,342 | 70,711 | (3,081) | (13,450) | ||||||||||||||||||||||||
| Ginnie Mae | 116,083 | 111,972 | 58,510 | 4,111 | 57,573 | ||||||||||||||||||||||||
| Total | $ | 548,096 | $ | 549,109 | $ | 398,564 | $ | (1,013) | $ | 149,532 | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | June 30, 2022 | June 30, 2021 | ||||||||||||||||||||
| Direct to Consumer | 5.10 | % | 3.14 | % | 3.61 | % | 3.45 | % | |||||||||||||||
| Retail / Joint Venture | 3.36 | % | 2.85 | % | 3.07 | % | 4.58 | % | |||||||||||||||
| Wholesale | 1.24 | % | 0.90 | % | 1.01 | % | 1.37 | % | |||||||||||||||
| Correspondent | 0.39 | % | 0.13 | % | 0.22 | % | 0.30 | % | |||||||||||||||
| 1.95 | % | 1.53 | % | 1.68 | % | 1.38 | % | ||||||||||||||||
| Unpaid Principal Balance | |||||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| (in millions) | June 30, 2022 | March 31, 2022 | June 30, 2022 | June 30, 2021 | QoQ Change | YoY Change | |||||||||||||||||||||||||||||
| Production by Channel | |||||||||||||||||||||||||||||||||||
| Direct to Consumer | $ | 2,164 | $ | 4,425 | $ | 6,589 | $ | 12,078 | $ | (2,261) | $ | (5,489) | |||||||||||||||||||||||
| Retail / Joint Venture | 6,103 | 6,404 | 12,507 | 2,056 | (301) | 10,451 | |||||||||||||||||||||||||||||
| Wholesale | 3,197 | 4,646 | 7,843 | 5,085 | (1,449) | 2,758 | |||||||||||||||||||||||||||||
| Correspondent | 7,591 | 11,401 | 18,992 | 31,473 | (3,810) | (12,481) | |||||||||||||||||||||||||||||
| Total Production by Channel | $ | 19,055 | $ | 26,876 | $ | 45,931 | $ | 50,692 | $ | (7,821) | $ | (4,761) | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | June 30, 2022 | June 30, 2021 | QoQ Change | YoY Change | ||||||||||||||||||||||||||||||
| Legal and professional | $ | 20,822 | $ | 28,586 | $ | 49,408 | $ | 36,806 | $ | (7,764) | $ | 12,602 | |||||||||||||||||||||||
| Loan origination | 35,015 | 39,901 | 74,916 | 85,161 | (4,886) | (10,245) | |||||||||||||||||||||||||||||
| Occupancy | 28,886 | 29,777 | 58,663 | 20,571 | (891) | 38,092 | |||||||||||||||||||||||||||||
| Subservicing | 41,987 | 46,808 | 88,795 | 95,117 | (4,821) | (6,322) | |||||||||||||||||||||||||||||
| Loan servicing | 4,866 | 5,304 | 10,170 | 9,306 | (438) | 864 | |||||||||||||||||||||||||||||
| Property and maintenance | 22,108 | 23,603 | 45,711 | 27,885 | (1,495) | 17,826 | |||||||||||||||||||||||||||||
Other | 71,587 | 72,259 | 143,846 | 62,001 | (672) | 81,845 | |||||||||||||||||||||||||||||
| Total | $ | 225,271 | $ | 246,238 | $ | 471,509 | $ | 336,847 | $ | (20,967) | $ | 134,662 | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | June 30, 2022 | June 30, 2021 | QoQ Change | YoY Change | ||||||||||||||||||||||||||||||
Excess MSRs | $ | 1,066 | $ | (2,630) | $ | (1,564) | $ | (8,829) | $ | 3,696 | $ | 7,265 | |||||||||||||||||||||||
Excess MSRs, equity method investees | 156 | 1,703 | 1,859 | 2,597 | (1,547) | (738) | |||||||||||||||||||||||||||||
Servicer advance investments | (1,314) | (483) | (1,797) | (4,873) | (831) | 3,076 | |||||||||||||||||||||||||||||
Real estate and other securities | (379,656) | (605,295) | (984,951) | (341,547) | 225,639 | (643,404) | |||||||||||||||||||||||||||||
Residential mortgage loans | (25,477) | (106,920) | (132,397) | 181,416 | 81,443 | (313,813) | |||||||||||||||||||||||||||||
| Consumer loans | (7,196) | (13,733) | (20,929) | (7,630) | 6,537 | (13,299) | |||||||||||||||||||||||||||||
| Mortgage loans receivable | (5,542) | 5,542 | — | — | (11,084) | — | |||||||||||||||||||||||||||||
Derivative instruments | 183,923 | 574,697 | 758,620 | 168,978 | (390,774) | 589,642 | |||||||||||||||||||||||||||||
| Total change in fair value of investments, net | $ | (234,040) | $ | (147,119) | $ | (381,159) | $ | (9,888) | $ | (86,921) | $ | (371,271) | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | June 30, 2022 | June 30, 2021 | QoQ Change | YoY Change | ||||||||||||||||||||||||||||||
| Sale of real estate securities | $ | (118,079) | $ | (1,557) | $ | (119,636) | $ | (25,691) | $ | (116,522) | $ | (93,945) | |||||||||||||||||||||||
| Sale of acquired residential mortgage loans | (1,798) | 50,419 | 48,621 | 49,597 | (52,217) | (976) | |||||||||||||||||||||||||||||
| Settlement of derivatives | 232,470 | 47,475 | 279,945 | (76,629) | 184,995 | 356,574 | |||||||||||||||||||||||||||||
| Liquidated residential mortgage loans | (14,551) | (29,932) | (44,484) | 629 | 15,381 | (45,113) | |||||||||||||||||||||||||||||
| Sale of REO | (1,268) | (2,090) | (3,359) | (4,185) | 822 | 826 | |||||||||||||||||||||||||||||
| Extinguishment of debt | — | — | — | 83 | — | (83) | |||||||||||||||||||||||||||||
| Other | (1,838) | (3,131) | (4,967) | (34,407) | 1,293 | 29,440 | |||||||||||||||||||||||||||||
| $ | 94,936 | $ | 61,184 | $ | 156,120 | $ | (90,603) | $ | 33,752 | $ | 246,723 | ||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | June 30, 2022 | June 30, 2021 | QoQ Change | YoY Change | ||||||||||||||||||||||||||||||
| Unrealized gain (loss) on secured notes and bonds payable | $ | 27,957 | $ | 7,194 | $ | 35,151 | $ | 1,216 | $ | 20,763 | $ | 33,935 | |||||||||||||||||||||||
| Rental revenue | 12,272 | 8,129 | 20,402 | 20,022 | 4,143 | 380 | |||||||||||||||||||||||||||||
| Property and maintenance revenue | 32,035 | 34,305 | 66,340 | 45,010 | (2,270) | 21,330 | |||||||||||||||||||||||||||||
| (Provision) reversal for credit losses on securities | (2,174) | (711) | (2,885) | 2,650 | (1,463) | (5,535) | |||||||||||||||||||||||||||||
| Valuation and credit loss (provision) reversal on loans and real estate owned | (1,614) | (3,029) | (4,643) | 51,365 | 1,415 | (56,008) | |||||||||||||||||||||||||||||
| Other income (loss) | (9,088) | 6,444 | (2,645) | (45,817) | (15,532) | 43,172 | |||||||||||||||||||||||||||||
| $ | 59,388 | $ | 52,332 | $ | 111,720 | $ | 74,446 | $ | 7,056 | $ | 37,274 | ||||||||||||||||||||||||
| March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Collateral | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Obligations/Collateral | Outstanding Face Amount | Carrying Value(A) | Final Stated Maturity(B) | Weighted Average Funding Cost | Weighted Average Life (Years) | Outstanding Face | Amortized Cost Basis | Carrying Value | Weighted Average Life (Years) | Carrying Value(A) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Financing Agreements(C) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase Agreements: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warehouse Credit Facilities-Residential Mortgage Loans(F) | $ | 4,910,944 | $ | 4,908,659 | Jul-22 to Sep-25 | 3.05 | % | 0.7 | $ | 5,646,909 | $ | 5,588,006 | $ | 5,479,872 | 20.3 | $ | 10,138,297 | |||||||||||||||||||||||||||||||||||||||||||||
Warehouse Credit Facilities-Mortgage Loans Receivable(E) | 1,161,223 | 1,161,223 | Dec-23 | 3.93 | % | 1.5 | 1,358,294 | 1,358,294 | 1,358,294 | 0.7 | 1,252,660 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS(D) | 7,040,807 | 7,040,807 | Jul-22 to Sep-22 | 1.18 | % | 0.1 | 7,994,763 | 8,216,954 | 7,061,674 | 9.6 | 8,386,538 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency RMBS(E) | 621,058 | 621,058 | Jul-22 to Oct-23 | 3.73 | % | 0.1 | 13,777,282 | 886,905 | 884,604 | 3.7 | 656,874 | |||||||||||||||||||||||||||||||||||||||||||||||||||
SFR properties(E) | 235,487 | 235,487 | Dec-22 | 3.15 | % | 0.5 | N/A | 330,159 | 330,159 | N/A | 158,515 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Secured Financing Agreements | 13,969,519 | 13,967,234 | 2.21 | % | 0.4 | 20,592,884 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Secured Notes and Bonds Payable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excess MSRs(G) | 228,497 | 228,497 | Aug-25 | 3.74 | % | 3.1 | 73,121,546 | 265,354 | 329,535 | 6.8 | 237,835 | |||||||||||||||||||||||||||||||||||||||||||||||||||
MSRs(H) | 4,666,798 | 4,657,497 | Dec-22 to Dec-26 | 4.60 | % | 2.7 | 527,279,143 | 6,414,614 | 8,279,291 | 7.5 | 4,234,771 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advance Investments(I) | 322,735 | 321,891 | Aug-22 to Mar-24 | 1.22 | % | 0.5 | 341,328 | 365,677 | 379,901 | 7.5 | 355,722 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advances(I) | 2,174,064 | 2,169,295 | Aug-22 to Nov-24 | 3.08 | % | 1.2 | 2,590,339 | 2,560,696 | 2,560,696 | 0.7 | 2,355,969 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Mortgage Loans(J) | 772,887 | 772,998 | Mar-24 to Jul-43 | 2.17 | % | 2.4 | 791,041 | 796,987 | 796,987 | 26.8 | 802,526 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Loans(K) | 384,596 | 357,663 | Sep-37 | 2.07 | % | 8.0 | 380,549 | 393,138 | 423,704 | 3.3 | 458,580 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| SFR Properties | 497,303 | 496,771 | Mar-23 to Jun-27 | 3.59 | % | 3.6 | N/A | 542,385 | 542,385 | N/A | 199,407 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans Receivable(L) | 324,062 | 317,414 | Dec-26 | 4.43 | % | 4.5 | 352,867 | 352,867 | 352,867 | 0.7 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Secured Notes and Bonds Payable | 9,370,942 | 9,322,026 | 3.75 | % | 2.6 | 8,644,810 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total/ Weighted Average | $ | 23,340,461 | $ | 23,289,260 | 2.84 | % | 1.3 | $ | 29,237,694 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2022 | |||||||||||||||||||||||
Outstanding Balance at June 30, 2022 | Average Daily Amount Outstanding(A) | Maximum Amount Outstanding | Weighted Average Daily Interest Rate | ||||||||||||||||||||
| Secured Financing Agreements | |||||||||||||||||||||||
| Agency RMBS | $ | 7,040,807 | $ | 8,448,097 | $ | 13,403,573 | 0.46 | % | |||||||||||||||
| Non-Agency RMBS | 621,058 | 642,802 | 1,020,775 | 3.02 | % | ||||||||||||||||||
| Residential mortgage loans | 4,475,520 | 6,314,481 | 11,262,875 | 2.24 | % | ||||||||||||||||||
| Real estate owned | 3,664 | 3,630 | 3,843 | 2.85 | % | ||||||||||||||||||
| Secured Notes and Bonds Payable | |||||||||||||||||||||||
| MSRs | 1,047,000 | 605,950 | 1,047,000 | 3.65 | % | ||||||||||||||||||
| Servicer advances | 714,627 | 892,995 | 1,242,051 | 1.86 | % | ||||||||||||||||||
| Total/weighted average | $ | 13,902,676 | $ | 16,907,955 | $ | 27,980,117 | 1.46 | % | |||||||||||||||
Average Daily Amount Outstanding(A) | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | ||||||||||||||||||||
| Secured Financing Agreements | |||||||||||||||||||||||
| Agency RMBS | $ | 7,886,950 | $ | 9,015,478 | $ | 8,789,698 | $ | 10,098,123 | |||||||||||||||
| Non-Agency RMBS | 266,365 | 646,092 | 711,931 | 715,802 | |||||||||||||||||||
| Residential mortgage loans | 5,271,295 | 7,477,038 | 8,497,137 | 4,879,365 | |||||||||||||||||||
| Real estate owned | 3,630 | 4,703 | 5,609 | 9,923 | |||||||||||||||||||
| Year | Price | |||||||
| 2022 | 103.125% | |||||||
| 2023 | 101.563% | |||||||
| 2024 and thereafter | 100.000% | |||||||
| Year Ending | Nonrecourse(A) | Recourse(B) | Total | |||||||||||||||||
| July 1 through December 31, 2022 | $ | 506,597 | $ | 9,299,334 | $ | 9,805,931 | ||||||||||||||
| 2023 | 1,299,437 | 5,529,828 | 6,829,265 | |||||||||||||||||
| 2024 | 1,239,059 | 1,533,468 | 2,772,527 | |||||||||||||||||
| 2025 | — | 1,879,018 | 1,879,018 | |||||||||||||||||
| 2026 | 324,062 | 1,514,224 | 1,838,286 | |||||||||||||||||
| 2027 and thereafter | 765,314 | — | 765,314 | |||||||||||||||||
| $ | 4,134,469 | $ | 19,755,872 | $ | 23,890,341 | |||||||||||||||
| Debt Obligations / Collateral | Borrowing Capacity | Balance Outstanding | Available Financing(A) | |||||||||||||||||
| Secured Financing Agreements | ||||||||||||||||||||
| Residential mortgage loans and REO | $ | 6,844,837 | $ | 3,044,826 | $ | 3,800,011 | ||||||||||||||
| Loan origination | 16,836,159 | 4,012,828 | 12,823,331 | |||||||||||||||||
| Secured Notes and Bonds Payable | ||||||||||||||||||||
| Excess MSRs | 286,380 | 228,497 | 57,883 | |||||||||||||||||
| MSRs | 5,870,641 | 4,666,798 | 1,203,843 | |||||||||||||||||
| Servicer advances | 3,911,341 | 2,496,799 | 1,414,542 | |||||||||||||||||
| Residential mortgage loans | 290,714 | 230,189 | 60,526 | |||||||||||||||||
| $ | 34,040,072 | $ | 14,679,937 | $ | 19,360,136 | |||||||||||||||
| Dividends Declared per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of Shares | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Series | June 30, 2022 | December 31, 2021 | Liquidation Preference(A) | Issuance Discount | Carrying Value(B) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Series A, 7.50% issued July 2019(C) | 6,210 | 6,210 | $ | 155,250 | 3.15 | % | $ | 150,026 | $ | 0.47 | $ | 0.47 | $ | 0.94 | $ | 0.94 | ||||||||||||||||||||||||||||||||||||||||
Series B, 7.125% issued August 2019(C) | 11,300 | 11,300 | 282,500 | 3.15 | % | 273,418 | 0.45 | 0.45 | 0.89 | 0.89 | ||||||||||||||||||||||||||||||||||||||||||||||
Series C, 6.375% issued February 2020(C) | 15,928 | 16,100 | 398,209 | 3.15 | % | 385,734 | 0.40 | 0.40 | 0.80 | 0.80 | ||||||||||||||||||||||||||||||||||||||||||||||
Series D, 7.00%, issued September 2021(D) | 18,600 | 18,600 | 465,000 | 3.15 | % | 449,489 | 0.44 | — | 0.88 | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Total | 52,038 | 52,210 | $ | 1,300,959 | $ | 1,258,667 | $ | 1.76 | $ | 1.32 | $ | 3.51 | $ | 2.63 | ||||||||||||||||||||||||||||||||||||||||||
| Held by the Former Manager | 19,985,826 | ||||
| Issued to the Former Manager and subsequently assigned to certain of the Former Manager’s employees | 1,486,164 | ||||
| Issued to the independent directors | 6,000 | ||||
| Total | 21,477,990 | ||||
| Common Dividends Declared for the Period Ended | Paid/Payable | Amount Per Share | ||||||||||||
| March 31, 2021 | April 2021 | $ | 0.20 | |||||||||||
| June 30, 2021 | July 2021 | 0.20 | ||||||||||||
| September 30, 2021 | October 2021 | 0.25 | ||||||||||||
| December 31, 2021 | January 2022 | 0.25 | ||||||||||||
| March 31, 2022 | April 2022 | 0.25 | ||||||||||||
| June 30, 2022 | July 2022 | 0.25 | ||||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||
| 2022 | 2021 | Change | ||||||||||||||||||
Beginning of period — cash, cash equivalents, and restricted cash | $ | 1,528,442 | $ | 1,080,473 | $ | 447,969 | ||||||||||||||
| Net cash provided by (used in) operating activities | 5,355,298 | (1,014,361) | 6,369,659 | |||||||||||||||||
| Net cash provided by (used in) investing activities | 465,332 | (2,374,125) | 2,839,457 | |||||||||||||||||
| Net cash provided by (used in) financing activities | (5,404,264) | 3,502,756 | (8,907,020) | |||||||||||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 416,366 | 114,270 | 302,096 | |||||||||||||||||
End of period — cash, cash equivalents, and restricted cash | $ | 1,944,808 | $ | 1,194,743 | $ | 750,065 | ||||||||||||||
| June 30, 2022 | December 31, 2021 | |||||||||||||
| Interest rate change (bps) | Estimated Change in Fair Value (in millions) | |||||||||||||
| +50bps | +316.9 | +488.5 | ||||||||||||
| +25bps | +160.0 | +253.6 | ||||||||||||
| -25bps | -160.0 | -253.6 | ||||||||||||
| -50bps | -336.8 | -519.8 | ||||||||||||
| June 30, 2022 | December 31, 2021 | |||||||||||||
| Mortgage basis change (bps) | Estimated Change in Fair Value (in millions) | |||||||||||||
| +20bps | +83.0 | +145.4 | ||||||||||||
| +10bps | +42.1 | +76.5 | ||||||||||||
| -10bps | -42.1 | -76.5 | ||||||||||||
| -20bps | -91.0 | -157.9 | ||||||||||||
Fair value at June 30, 2022 | $ | 5,845,943 | ||||||||||||||||||||||||
| Discount rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 6,259,854 | $ | 6,045,984 | $ | 5,658,124 | $ | 5,481,889 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | 413,911 | $ | 200,041 | $ | (187,819) | $ | (364,054) | ||||||||||||||||||
| Percentage | 7.1 | % | 3.4 | % | (3.2) | % | (6.2) | % | ||||||||||||||||||
| Prepayment rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 6,185,055 | $ | 6,008,137 | $ | 5,697,843 | $ | 5,559,808 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | 339,112 | $ | 162,194 | $ | (148,100) | $ | (286,135) | ||||||||||||||||||
| Percentage | 5.8 | % | 2.8 | % | (2.5) | % | (4.9) | % | ||||||||||||||||||
| Delinquency rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 5,917,055 | $ | 5,884,498 | $ | 5,801,262 | $ | 5,751,246 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | 71,112 | $ | 38,555 | $ | (44,681) | $ | (94,697) | ||||||||||||||||||
| Percentage | 1.2 | % | 0.7 | % | (0.8) | % | (1.6) | % | ||||||||||||||||||
| Recapture rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 5,818,337 | $ | 5,832,101 | $ | 5,859,629 | $ | 5,873,378 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | (27,606) | $ | (13,842) | $ | 13,686 | $ | 27,435 | ||||||||||||||||||
| Percentage | (0.5) | % | (0.2) | % | 0.2 | % | 0.5 | % | ||||||||||||||||||
Fair value at June 30, 2022 | $ | 1,971,938 | ||||||||||||||||||||||||
| Discount rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 2,117,453 | $ | 2,042,186 | $ | 1,906,256 | $ | 1,844,735 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | 145,515 | $ | 70,248 | $ | (65,682) | $ | (127,203) | ||||||||||||||||||
| Percentage | 7.4 | % | 3.6 | % | (3.3) | % | (6.5) | % | ||||||||||||||||||
| Prepayment rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 2,108,615 | $ | 2,037,346 | $ | 1,911,521 | $ | 1,855,299 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | 136,677 | $ | 65,408 | $ | (60,417) | $ | (116,639) | ||||||||||||||||||
| Percentage | 6.9 | % | 3.3 | % | (3.1) | % | (5.9) | % | ||||||||||||||||||
| Delinquency rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 2,124,194 | $ | 2,052,203 | $ | 1,884,659 | $ | 1,791,686 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | 152,256 | $ | 80,265 | $ | (87,279) | $ | (180,252) | ||||||||||||||||||
| Percentage | 7.7 | % | 4.1 | % | (4.4) | % | (9.1) | % | ||||||||||||||||||
| Recapture rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 1,961,859 | $ | 1,966,942 | $ | 1,977,112 | $ | 1,982,189 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | (10,079) | $ | (4,996) | $ | 5,174 | $ | 10,251 | ||||||||||||||||||
| Percentage | (0.5) | % | (0.3) | % | 0.3 | % | 0.5 | % | ||||||||||||||||||
| Exhibit Number | Exhibit Description | |||||||
2.1† | Separation and Distribution Agreement, dated as of April 26, 2013, by and between New Residential Investment Corp. and Newcastle Investment Corp. (incorporated by reference to Exhibit 2.1 to Amendment No. 6 of New Residential Investment Corp.’s Registration Statement on Form 10, filed April 29, 2013) | |||||||
2.2† | Purchase Agreement, dated as of March 5, 2013, by and among the Sellers listed therein, HSBC Finance Corporation and SpringCastle Acquisition LLC (incorporated by reference to Exhibit 99.1 to Drive Shack Inc.’s Current Report on Form 8-K, filed March 11, 2013) | |||||||
2.3† | Master Servicing Rights Purchase Agreement, dated as of December 17, 2013, by and between Nationstar Mortgage LLC and Advance Purchaser LLC (incorporated by reference to Exhibit 2.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed December 23, 2013) | |||||||
2.4† | Sale Supplement (Shuttle 1), dated as of December 17, 2013, by and between Nationstar Mortgage LLC and Advance Purchaser LLC (incorporated by reference to Exhibit 2.2 to New Residential Investment Corp.’s Current Report on Form 8-K, filed December 23, 2013) | |||||||
2.5† | Sale Supplement (Shuttle 2), dated as of December 17, 2013, by and between Nationstar Mortgage LLC and Advance Purchaser LLC (incorporated by reference to Exhibit 2.3 to New Residential Investment Corp.’s Current Report on Form 8-K, filed December 23, 2013) | |||||||
2.6† | Sale Supplement (First Tennessee), dated as of December 17, 2013, by and between Nationstar Mortgage LLC and Advance Purchaser LLC (incorporated by reference to Exhibit 2.4 to New Residential Investment Corp.’s Current Report on Form 8-K, filed December 23, 2013) | |||||||
2.7† | Purchase Agreement, dated as of March 31, 2016, by and among SpringCastle Holdings, LLC, Springleaf Acquisition Corporation, Springleaf Finance, Inc., NRZ Consumer LLC, NRZ SC America LLC, NRZ SC Credit Limited, NRZ SC Finance I LLC, NRZ SC Finance II LLC, NRZ SC Finance III LLC, NRZ SC Finance IV LLC, NRZ SC Finance V LLC, BTO Willow Holdings II, L.P. and Blackstone Family Tactical Opportunities Investment Partnership - NQ - ESC L.P., and solely with respect to Section 11(a) and Section 11(g), NRZ SC America Trust 2015-1, NRZ SC Credit Trust 2015-1, NRZ SC Finance Trust 2015-1, and BTO Willow Holdings, L.P. (incorporated by reference to Exhibit 2.10 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016, filed on May 4, 2016) | |||||||
2.8† | Securities Purchase Agreement, dated as of November 29, 2017, by and among NRM Acquisition LLC, Shellpoint Partners LLC, the Sellers party thereto and Shellpoint Services LLC, as original representative of the Seller (incorporated by reference to Exhibit 2.8 to New Residential Investment Corp.’s Annual Report on Form 10-K for the year ended December 31, 2017, filed on February 15, 2018) | |||||||
2.9† | Amendment No. 1 to the Securities Purchase Agreement, dated as of July 3, 2018, by and among NRM Acquisition LLC, Shellpoint Partners LLC, the Sellers party thereto and Shellpoint Representative LLC, as replacement representative of the Sellers (incorporated by reference to Exhibit 2.9 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2018) | |||||||
| Asset Purchase Agreement among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company, dated June 17, 2019 (incorporated by reference to Exhibit 2.10 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019) | ||||||||
| Amendment No. 1 to the Asset Purchase Agreement, dated as of July 9, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.11 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) | ||||||||
| Amendment No. 2 to the Asset Purchase Agreement, dated as of August 30, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.12 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) | ||||||||
| Amendment No. 3 to the Asset Purchase Agreement, dated as of September 4, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.13 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) | ||||||||
| Amendment No. 4 to the Asset Purchase Agreement, dated as of September 5, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.14 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) | ||||||||
| Exhibit Number | Exhibit Description | |||||||
| Amendment No. 5 to the Asset Purchase Agreement, dated as of September 6, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.15 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) | ||||||||
| Amendment No. 6 to the Asset Purchase Agreement, dated as of September 9, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.16 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) | ||||||||
| Amendment No. 7 to the Asset Purchase Agreement, dated as of September 17, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.17 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) | ||||||||
| Amendment No. 8 to the Asset Purchase Agreement, dated as of September 30, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.18 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) | ||||||||
| Amendment No. 9 to the Asset Purchase Agreement, dated as of November 27, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.19 to New Residential Investment Corp.’s Annual Report on Form 10-K for the year ended December 31, 2019, filed on February 19, 2020) | ||||||||
| Amendment No. 10 to the Asset Purchase Agreement, dated as of December 12, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.20 to New Residential Investment Corp.’s Annual Report on Form 10-K for the year ended December 31, 2019, filed on February 19, 2020) | ||||||||
| Amendment No. 11 to the Asset Purchase Agreement, dated as of January 17, 2020, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.21 to New Residential Investment Corp.’s Annual Report on Form 10-K for the year ended December 31, 2019, filed on February 19, 2020) | ||||||||
| Amendment No. 12 to the Asset Purchase Agreement, dated as of January 24, 2020, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.22 to New Residential Investment Corp.’s Annual Report on Form 10-K for the year ended December 31, 2019, filed on February 19, 2020) | ||||||||
| Settlement and Release Agreement, dated as of January 27, 2020, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.23 to New Residential Investment Corp.’s Annual Report on Form 10-K for the year ended December 31, 2019, filed on February 19, 2020) | ||||||||
| Stock Purchase Agreement, dated April 14, 2021, by and between LSF Pickens Holdings, LLC, Caliber Home Loans, Inc., and New Residential Investment Corp. (incorporated by reference to Exhibit 2.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed April 14, 2021) | ||||||||
| Amended and Restated Certificate of Incorporation of New Residential Investment Corp. (incorporated by reference to Exhibit 3.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed May 3, 2013) | ||||||||
| Amended and Restated Bylaws of Rithm Capital Corp. (incorporated by reference to Exhibit 3.2 to Rithm Capital Corp.’s Current Report on Form 8-K, filed August 2, 2022) | ||||||||
| Certificate of Amendment to the Amended and Restated Certificate of Incorporation of New Residential Investment Corp. (incorporated by reference to Exhibit 3.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed October 17, 2014) | ||||||||
| Certificate of Amendment to the Amended and Restated Certificate of Incorporation of New Residential Investment Corp. (incorporated by reference to Exhibit 3.1 to Rithm Capital Corp.’s Current Report on Form 8-K, filed August 2, 2022) | ||||||||
| Certificate of Designations of New Residential Investment Corp., designating the Company’s 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, par value $0.01 per share (incorporated by reference to Exhibit 3.4 to New Residential Investment Corp.’s Form 8-A, filed July 2, 2019) | ||||||||
| Certificate of Designations of New Residential Investment Corp., designating the Company’s 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, par value $0.01 per share (incorporated by reference to Exhibit 3.5 to New Residential Investment Corp.’s Form 8-A, filed August 15, 2019) | ||||||||
| Exhibit Number | Exhibit Description | |||||||
| Certificate of Designations of New Residential Investment Corp., designating the Company’s 6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, par value $0.01 per share (incorporated by reference to Exhibit 3.6 to New Residential Investment Corp.’s Form 8-A, filed February 14, 2020) | ||||||||
Certificate of Designations of New Residential Investment Corp., designating the Company’s 7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock, par value $0.01 per share (incorporated by reference to Exhibit 3.7 to New Residential Investment Corp.’s Form 8-A, filed September 17, 2021) | ||||||||
| Specimen Series A Preferred Stock Certificate (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Form 8-A filed July 2, 2019) | ||||||||
| Specimen Series B Preferred Stock Certificate of New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Form 8-A, filed August 15, 2019) | ||||||||
| Specimen Series C Preferred Stock Certificate of New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Form 8-A, filed February 14, 2020) | ||||||||
Specimen Series D Preferred Stock Certificate of New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Form 8-A, filed September 17, 2021) | ||||||||
| Second Amended and Restated Indenture, dated as of September 7, 2018, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, New Residential Mortgage LLC, New Penn Financial, LLC, d/b/a Shellpoint Mortgage Servicing and Credit Suisse AG, New York Branch (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed September 7, 2018) | ||||||||
| Omnibus Amendment to Term Note Indenture Supplements, dated as of August 17, 2017, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, New Residential Mortgage LLC, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to Exhibit 4.2 to New Residential Investment Corp.’s Current Report on Form 8-K, filed August 22, 2017) | ||||||||
| Series 2018-VF1 Indenture Supplement, dated as of March 22, 2018, to the Amended and Restated Indenture, dated as of August 17, 2017, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, New Residential Mortgage LLC, JPMorgan Chase Bank, N.A. and New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.'s Current Report on Form 8-K, filed March 28, 2018) | ||||||||
| Omnibus Amendment to Certain Agreements Relating to the NRZ Advance Receivables Trust 2015-ON1, dated as of September 7, 2018, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, New Residential Mortgage LLC, Credit Suisse AG, New York Branch, New Penn Financial, LLC, d/b/a Shellpoint Mortgage Servicing and New Residential Investment Corp. (incorporated by reference to Exhibit 4.2 to New Residential Investment Corp.’s Current Report on Form 8-K, filed September 7, 2018) | ||||||||
| Amendment No. 1 to Series 2018-VF1 Indenture Supplement, dated as of September 7, 2018, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, New Residential Mortgage LLC, New Penn Financial, LLC, d/b/a Shellpoint Mortgage Servicing, JPMorgan Chase Bank, N.A. and New Residential Investment Corp. (incorporated by reference to Exhibit 4.3 to New Residential Investment Corp.’s Current Report on Form 8-K, filed September 7, 2018) | ||||||||
| Amendment No. 2 to Series 2018-VF1 Indenture Supplement, dated as of September 28, 2018, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, New Residential Mortgage LLC, New Penn Financial, LLC, d/b/a Shellpoint Mortgage Servicing, JPMorgan Chase Bank, N.A. and New Residential Investment Corp. (incorporated by reference to Exhibit 4.11 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q, filed May 2, 2019) | ||||||||
| Amendment No. 3 to Series 2018-VF1 Indenture Supplement, dated as of March 11, 2019, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, New Residential Mortgage LLC, Newrez LLC d/b/a Shellpoint Mortgage Servicing, JPMorgan Chase Bank, N.A. and New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed March 15, 2019) | ||||||||
| Third Amended and Restated Indenture, dated as of July 25, 2019, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, PHH Mortgage Corporation, HLSS Holdings, LLC, New Residential Mortgage LLC, Newrez LLC, d/b/a Shellpoint Mortgage Servicing and Credit Suisse AG, New York Branch (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Form 8-K, filed July 26, 2019) | ||||||||
| Exhibit Number | Exhibit Description | |||||||
| Form of Debt Securities Indenture (including Form of Debt Security) (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Registration Statement on Form S-3, filed May 16, 2014) | ||||||||
| Indenture, dated as of September 16, 2020, between New Residential Investment Corp. and U.S. Bank National Association (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed September 16, 2020) | ||||||||
| Description of Securities Registered under Section 12 of the Exchange Act | ||||||||
| Form of Indemnification Agreement by and between New Residential Investment Corp. and its directors and officers (incorporated by reference to Exhibit 10.2 to Amendment No. 3 to New Residential Investment Corp.’s Registration Statement on Form 10, filed March 27, 2013) | ||||||||
| New Residential Investment Corp. Nonqualified Stock Option and Incentive Award Plan, adopted as of April 29, 2013 (incorporated by reference to Exhibit 10.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed May 3, 2013) | ||||||||
| Amended and Restated New Residential Investment Corp. Nonqualified Stock Option and Incentive Plan, adopted as of November 4, 2014 (incorporated by reference to Exhibit 10.6 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014) | ||||||||
| Investment Guidelines (incorporated by reference to Exhibit 10.4 to Amendment No. 4 to New Residential Investment Corp.’s Registration Statement on Form 10, filed April 9, 2013) | ||||||||
| Excess Servicing Spread Sale and Assignment Agreement, dated as of December 8, 2011, by and between Nationstar Mortgage LLC and NIC MSR I LLC (incorporated by reference to Exhibit 10.5 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011) | ||||||||
| Excess Spread Refinanced Loan Replacement Agreement, dated as of December 8, 2011, by and between Nationstar Mortgage LLC and NIC MSR I LLC (incorporated by reference to Exhibit 10.6 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011) | ||||||||
| Future Spread Agreement for FHLMC Mortgage Loans, dated as of May 13, 2012, by and between Nationstar Mortgage LLC and NIC MSR IV LLC (incorporated by reference to Exhibit 10.4 to Drive Shack Inc.’s Current Report on Form 8-K, filed May 15, 2012) | ||||||||
| Future Spread Agreement for FNMA Mortgage Loans, dated as of May 13, 2012, by and between Nationstar Mortgage LLC and NIC MSR V LLC (incorporated by reference to Exhibit 10.2 to Drive Shack Inc.’s Current Report on Form 8-K, filed May 15, 2012) | ||||||||
| Future Spread Agreement for Non-Agency Mortgage Loans, dated as of May 13, 2012, by and between Nationstar Mortgage LLC and NIC MSR VI LLC (incorporated by reference to Exhibit 10.6 to Drive Shack Inc.’s Current Report on Form 8-K, filed May 15, 2012) | ||||||||
| Future Spread Agreement for GNMA Mortgage Loans, dated as of May 13, 2012, by and between Nationstar Mortgage LLC and NIC MSR VII, LLC (incorporated by reference to Exhibit 10.8 to Drive Shack Inc.’s Current Report on Form 8-K, filed May 15, 2012) | ||||||||
| Current Excess Servicing Spread Acquisition Agreement for FHLMC Mortgage Loans, dated as of May 31, 2012, by and between Nationstar Mortgage LLC and NIC MSR III LLC (incorporated by reference to Exhibit 10.1 to Drive Shack Inc.’s Current Report on Form 8-K, filed June 6, 2012) | ||||||||
| Future Spread Agreement for FHLMC Mortgage Loans, dated as of May 31, 2012, by and between Nationstar Mortgage LLC and NIC MSR III LLC (incorporated by reference to Exhibit 10.2 to Drive Shack Inc.’s Current Report on Form 8-K, filed June 6, 2012) | ||||||||
| Amended and Restated Current Excess Servicing Spread Acquisition Agreement for FNMA Mortgage Loans, dated as of June 7, 2012, by and between Nationstar Mortgage LLC and NIC MSR II LLC (incorporated by reference to Exhibit 10.1 to Drive Shack Inc.’s Current Report on Form 8-K, filed June 7, 2012) | ||||||||
| Amended and Restated Future Spread Agreement for FNMA Mortgage Loans, dated as of June 7, 2012, by and between Nationstar Mortgage LLC and NIC MSR II LLC (incorporated by reference to Exhibit 10.2 to Drive Shack Inc.’s Current Report on Form 8-K, filed June 7, 2012) | ||||||||
| Amended and Restated Current Excess Servicing Spread Acquisition Agreement for FHLMC Mortgage Loans, dated as of June 7, 2012, by and between Nationstar Mortgage LLC and NIC MSR II LLC (incorporated by reference to Exhibit 10.3 to Drive Shack Inc.’s Current Report on Form 8-K, filed June 7, 2012) | ||||||||
| Exhibit Number | Exhibit Description | |||||||
| Amended and Restated Future Spread Agreement for FHLMC Mortgage Loans, dated as of June 7, 2012, by and between Nationstar Mortgage LLC and NIC MSR II LLC (incorporated by reference to Exhibit 10.4 to Drive Shack Inc.’s Current Report on Form 8-K, filed June 7, 2012) | ||||||||
| Amended and Restated Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, dated as of June 7, 2012, by and between Nationstar Mortgage LLC and NIC MSR II LLC (incorporated by reference to Exhibit 10.5 to Drive Shack Inc.’s Current Report on Form 8-K, filed June 7, 2012) | ||||||||
| Amended and Restated Future Spread Agreement for Non-Agency Mortgage Loans, dated as of June 7, 2012, by and between Nationstar Mortgage LLC and NIC MSR II LLC (incorporated by reference to Exhibit 10.6 to Drive Shack Inc.’s Current Report on Form 8-K, filed June 7, 2012) | ||||||||
| Amended and Restated Current Excess Servicing Spread Acquisition Agreement for FNMA Mortgage Loans, dated as of June 28, 2012, by and between Nationstar Mortgage LLC and NIC MSR V LLC (incorporated by reference to Exhibit 10.1 to Drive Shack Inc.’s Current Report on Form 8-K, filed July 5, 2012) | ||||||||
| Amended and Restated Current Excess Servicing Spread Acquisition Agreement for FHLMC Mortgage Loans, dated as of June 28, 2012, by and between Nationstar Mortgage LLC and NIC MSR IV LLC (incorporated by reference to Exhibit 10.2 to Drive Shack Inc.’s Current Report on Form 8-K, filed July 5, 2012) | ||||||||
| Amended and Restated Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, dated as of June 28, 2012, by and between Nationstar Mortgage LLC and NIC MSR VI LLC (incorporated by reference to Exhibit 10.3 to Drive Shack Inc.’s Current Report on Form 8-K, filed July 5, 2012) | ||||||||
| Amended and Restated Current Excess Servicing Spread Acquisition Agreement for GNMA Mortgage Loans, dated as of June 28, 2012, by and between Nationstar Mortgage LLC and NIC MSR VII LLC (incorporated by reference to Exhibit 10.4 to Drive Shack Inc.’s Current Report on Form 8-K, filed July 5, 2012) | ||||||||
| Current Excess Servicing Spread Acquisition Agreement for GNMA Mortgage Loans, dated as of December 31, 2012, by and between Nationstar Mortgage LLC and MSR VIII LLC (incorporated by reference to Exhibit 10.35 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
| Future Spread Agreement for GNMA Mortgage Loans, dated as of December 31, 2012, by and between Nationstar Mortgage LLC and MSR VIII LLC (incorporated by reference to Exhibit 10.36 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
| Current Excess Servicing Spread Acquisition Agreement for FHLMC Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR IX LLC (incorporated by reference to Exhibit 10.37 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
| Future Spread Agreement for FHLMC Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR IX LLC (incorporated by reference to Exhibit 10.38 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
| Current Excess Servicing Spread Acquisition Agreement for FNMA Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR X LLC (incorporated by reference to Exhibit 10.39 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
| Future Spread Agreement for FNMA Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR X LLC (incorporated by reference to Exhibit 10.40 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
| Current Excess Servicing Spread Acquisition Agreement for GNMA Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR XI LLC (incorporated by reference to Exhibit 10.41 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
| Future Spread Agreement for GNMA Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR XI LLC (incorporated by reference to Exhibit 10.42 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
| Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR XII LLC (incorporated by reference to Exhibit 10.43 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
| Future Spread Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR XII LLC (incorporated by reference to Exhibit 10.44 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
| Exhibit Number | Exhibit Description | |||||||
| Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR XIII LLC (incorporated by reference to Exhibit 10.45 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
| Future Spread Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR XIII LLC (incorporated by reference to Exhibit 10.46 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
| Interim Servicing Agreement, dated as of April 1, 2013, by and among the Interim Servicers listed therein, HSBC Finance Corporation, as Interim Servicer Representative, HSBC Bank USA, National Association, SpringCastle America, LLC, SpringCastle Credit, LLC, SpringCastle Finance, LLC, Wilmington Trust, National Association, as Loan Trustee, and SpringCastle Finance LLC, as Owner Representative (incorporated by reference to Exhibit 10.35 to Amendment No. 4 to New Residential Investment Corp.’s Registration Statement on Form 10, filed April 9, 2013) | ||||||||
| Second Amended and Restated Limited Liability Company Agreement of SpringCastle Acquisition LLC, dated as of March 31, 2016 (incorporated by reference to Exhibit 10.37 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016) | ||||||||
| Services Agreement, dated as of April 6, 2015, by and between HLSS Advances Acquisition Corp. and Home Loan Servicing Solutions, Ltd. (incorporated by reference to Exhibit 2.4 to New Residential Investment Corp.’s Current Report on Form 8-K, filed April 10, 2015) | ||||||||
| Receivables Sale Agreement, dated as of August 28, 2015, by and among Ocwen Loan Servicing, LLC, HLSS Holdings, LLC and NRZ Advance Facility Transferor 2015-ON1 LLC (incorporated by reference to Exhibit 10.47 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015) | ||||||||
| Receivables Pooling Agreement, dated as of August 28, 2015, by and between NRZ Advance Facility Transferor 2015-ON1 LLC and NRZ Advance Receivables Trust 2015-ON1 (incorporated by reference to Exhibit 10.48 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015) | ||||||||
| Master Agreement, dated as July 23, 2017, by and among Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, HLSS MSR - EBO Acquisition LLC and New Residential Mortgage LLC (incorporated by reference to Exhibit 10.41 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017) | ||||||||
| Amendment No. 1 to Master Agreement, dated as of October 12, 2017, by and among Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, HLSS MSR - EBO Acquisition LLC and New Residential Mortgage LLC (incorporated by reference to Exhibit 10.42 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017) | ||||||||
| Transfer Agreement, dated as of July 23, 2017, by and among Ocwen Loan Servicing, LLC, New Residential Mortgage LLC, Ocwen Financial Corporation and New Residential Investment Corp. (incorporated by reference to Exhibit 10.43 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017) | ||||||||
| Amendment No. 1 to the Transfer Agreement, dated January 18, 2018, by and among Ocwen Loan Servicing, LLC, New Residential Mortgage LLC, Ocwen Financial Corporation and New Residential Investment Corp. (incorporated by reference to Exhibit 10.44 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018) | ||||||||
| Subservicing Agreement, dated as of July 23, 2017, by and between New Residential Mortgage LLC and Ocwen Loan Servicing, LLC (incorporated by reference to Exhibit 10.44 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017) | ||||||||
| Amendment No. 1 to Subservicing Agreement, dated as of August 17, 2018, by and between New Residential Mortgage LLC and Ocwen Loan Servicing, LLC (incorporated by reference to Exhibit 10.46 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018) | ||||||||
| Amendment No. 2 to Subservicing Agreement, dated as of October 5, 2020, by and between New Residential Mortgage LLC and PHH Mortgage Corporation (as successor by merger to Ocwen Loan Servicing, LLC) (incorporated by reference to Exhibit 10.47 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
| Exhibit Number | Exhibit Description | |||||||
| Cooperative Brokerage Agreement, dated as of August 28, 2017, by and among REALHome Services and Solutions, Inc., REALHome Services and Solutions - CT, Inc. and New Residential Sales Corp. (incorporated by reference to Exhibit 10.45 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017) | ||||||||
| First Amendment to Cooperative Brokerage Agreement, dated as of November 16, 2017, by and among REALHome Services and Solutions, Inc., REALHome Services and Solutions - CT, Inc. and New Residential Sales Corp. (incorporated by reference to Exhibit 10.46 to New Residential Investment Corp.’s Annual Report on Form 10-K for the year ended December 31, 2017, filed on February 14, 2018) | ||||||||
| Second Amendment to Cooperative Brokerage Agreement, dated as of January 18, 2018, by and among REALHome Services and Solutions, Inc., REALHome Services and Solutions - CT, Inc. and New Residential Sales Corp. (incorporated by reference to Exhibit 10.47 to New Residential Investment Corp.’s Annual Report on Form 10-K for the year ended December 31, 2017, filed on February 14, 2018) | ||||||||
| Third Amendment to Cooperative Brokerage Agreement, dated as of March 23, 2018, by and among REALHome Services and Solutions, Inc., REALHome Services and Solutions - CT, Inc. and New Residential Sales Corp. (incorporated by reference to Exhibit 10.49 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018) | ||||||||
| Fourth Amendment to Cooperative Brokerage Agreement, dated as of September 11, 2018, by and among REALHome Services and Solutions, Inc., REALHome Services and Solutions - CT, Inc. and New Residential Sales Corp. (incorporated by reference to Exhibit 10.51 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018) | ||||||||
| Letter Agreement, dated as of August 28, 2017, by and among New Residential Investment Corp., New Residential Mortgage LLC, REALHome Services and Solutions, Inc., REALHome Services and Solutions - CT, Inc. and Altisource Solutions S.a.r.l. (incorporated by reference to Exhibit 10.46 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017) | ||||||||
| New RMSR Agreement, dated as of January 18, 2018, by and among Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, HLSS MSR - EBO Acquisition LLC, and New Residential Mortgage LLC (incorporated by reference to Exhibit 10.51 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018) | ||||||||
| Amendment No. 1 to New RMSR Agreement, dated as of August 17, 2018, by and among Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, HLSS MSR - EBO Acquisition LLC, and New Residential Mortgage LLC (incorporated by reference to Exhibit 10.54 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018) | ||||||||
Amendment No. 2 to New RMSR Agreement, dated as of October 5, 2020, by and among PHH Mortgage Corporation (as successor by merger to Ocwen Loan Servicing, LLC), HLSS Holdings, LLC, HLSS MSR - EBO Acquisition LLC, and New Residential Mortgage LLC (incorporated by reference to Exhibit 10.56 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
| Subservicing Agreement, dated as of August 17, 2018, by and between New Penn Financial, LLC, d/b/a Shellpoint Mortgage Servicing and Ocwen Loan Servicing, LLC (incorporated by reference to Exhibit 10.55 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018) | ||||||||
Amendment No. 1 to Subservicing Agreement, dated as of October 5, 2020, by and between Newrez, LLC (as successor-in-interest to New Penn Financial, LLC) d/b/a Shellpoint Mortgage Servicing and PHH Mortgage Corporation (as successor by merger to Ocwen Loan Servicing, LLC) (incorporated by reference to Exhibit 10.58 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
| Call Rights Letter Agreement, dated as of March 31, 2020, between New Residential Investment Corp. and Fortress Credit Opportunities V Advisors LLC (incorporated by reference to Exhibit 10.56 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020) | ||||||||
| Senior Secured Term Loan Facility Agreement, dated as of May 19, 2020, among New Residential Investment Corp., as Parent and the Borrower, and Certain Subsidiaries of New Residential Investment Corp., as Subsidiary Guarantors, the Lenders Party thereto and Cortland Capital Market Services LLC, as Administrative Agent and Collateral Agent (incorporated by reference to Exhibit 10.60 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
| Exhibit Number | Exhibit Description | |||||||
| Pledge and Security Agreement, dated as of May 19, 2020, among each of the Pledgors Party thereto and Cortland Capital Market Services LLC, as Collateral Agent (incorporated by reference to Exhibit 10.61 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
| Form of Common Stock Purchase Warrant No. S1, dated May 19, 2020, between New Residential Investment Corp. and Canyon Finance (Cayman) Limited or its permitted assigns (incorporated by reference to Exhibit 10.62 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
| Form of Common Stock Purchase Warrant No. S2, dated May 19, 2020, between New Residential Investment Corp. and Canyon Finance (Cayman) Limited or its permitted assigns (incorporated by reference to Exhibit 10.63 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
| Form of Common Stock Purchase Warrant No. S1, dated May 27, 2020, between New Residential Investment Corp. and CF NRS-E LLC or its permitted assigns (incorporated by reference to Exhibit 10.64 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
| Form of Common Stock Purchase Warrant No. S2, dated May 27, 2020, between New Residential Investment Corp. and CF NRS-E LLC or its permitted assigns (incorporated by reference to Exhibit 10.65 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
| Registration Rights Agreement, dated May 19, 2020, by and among New Residential Investment Corp. and the Investors set forth on Schedule 1 thereto (incorporated by reference to Exhibit 10.66 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
| Internalization Agreement, dated June 17, 2022, by and between New Residential Investment Corp. and FIG LLC (incorporated by reference to Exhibit 10.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed June 17, 2022) | ||||||||
| Transition Services Agreement, dated June 17, 2022, by and between New Residential Investment Corp. and FIG LLC (incorporated by reference to Exhibit 10.2 to New Residential Investment Corp.’s Current Report on Form 8-K, filed June 17, 2022) | ||||||||
| Employment Agreement, dated as of June 17, 2022, by and between New Residential Investment Corp. and Michael Nierenberg | ||||||||
| Offer Letter, dated as of August 1, 2022, by and between Rithm Capital Corp. and Nicola Santoro, Jr. | ||||||||
| List of Subsidiaries of Rithm Capital Corp. | ||||||||
| Consent of Ernst & Young LLP, independent registered public accounting firm. | ||||||||
| Certification of Chief Executive Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
| Certification of Chief Financial Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
| Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
| Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
| 101 | The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Comprehensive Income; (iii) Consolidated Statements of Changes in Stockholders’ Equity; (iv) Consolidated Statements of Cash Flows; and (v) Notes to Consolidated Financial Statements | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
| † | Portions of this exhibit have been omitted. | |||||||
| # | Portions of this exhibit have been omitted pursuant to a request for confidential treatment. | |||||||
| RITHM CAPITAL CORP. | ||||||||
| By: | /s/ Michael Nierenberg | |||||||
| Michael Nierenberg | ||||||||
| Chief Executive Officer and President | ||||||||
| (Principal Executive Officer) | ||||||||
| August 4, 2022 | ||||||||
| By: | /s/ Nicola Santoro, Jr. | |||||||
| Nicola Santoro, Jr. | ||||||||
| Chief Financial Officer and Treasurer | ||||||||
| (Principal Financial Officer) | ||||||||
| August 4, 2022 | ||||||||
| 1. | I have reviewed this quarterly report on Form 10-Q of Rithm Capital Corp.; | ||||
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||||
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||||
| 4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have: | ||||
| a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
| b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
| c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
| d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||
| 5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | ||||
| a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |||||||
| b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. | |||||||
| August 4, 2022 | /s/ Michael Nierenberg | ||||
| Michael Nierenberg | |||||
| Chief Executive Officer | |||||
| 1. | I have reviewed this quarterly report on Form 10-Q of Rithm Capital Corp.; | ||||
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||||
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||||
| 4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have: | ||||
| a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
| b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
| c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
| d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||
| 5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | ||||
| a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |||||||
| b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. | |||||||
| August 4, 2022 | /s/ Nicola Santoro, Jr. | ||||
| Nicola Santoro, Jr. | |||||
| Chief Financial Officer | |||||
| August 4, 2022 | /s/ Michael Nierenberg | ||||
| Michael Nierenberg | |||||
| Chief Executive Officer | |||||
| August 4, 2022 | /s/ Nicola Santoro, Jr. | ||||
| Nicola Santoro, Jr. | |||||
| Chief Financial Officer | |||||
| NEW RESIDENTIAL INVESTMENT CORP. | ||||||||
| By: | /s/ Robert J. McGinnis | |||||||
| Name: Robert J. McGinnis | ||||||||
| Title: Chairman of the Special Committee of the Board of Directors | ||||||||
| EXECUTIVE | ||||||||
| /s/ Michael Nierenberg | ||||||||
| Michael Nierenberg | ||||||||
Title: | You will serve as Managing Director. You will devote your full working time to the Company. | ||||
Start Date: | Your employment with the Company is expected to commence on or about August 1, 2022 and will in no event commence later than September 30, 2022 (the actual date on which you become employed by the Company is referred to as the “Start Date”). The Company will provide you with at least three (3) days prior notice of the Start Date. The terms and conditions of this Letter Agreement are contingent upon (i) you being an active employee of FIG LLC as of, and not having given or received notice of termination of such employment (other than as contemplated in (ii) below) prior to, the Start Date and this Letter Agreement will have no force or effect if your employment with FIG LLC terminates for any reason, or if you give or receive notice of termination of such employment (other than as contemplated in (ii) below), prior to the Start Date and (ii) you executing a separation agreement and general release of claims in the form provided by FIG LLC prior to the Start Date. | ||||
Location of Employment: | You will be an employee of the Company at its office in New York, New York, although you acknowledge that you may be required to travel from time to time for business reasons, as reasonably requested by the Company. | ||||
Compensation: | Your base salary will be paid at the rate of $300,000.00 per annum (the “Base Salary”), payable in accordance with the regular payroll practices of the Company (which is currently based and paid on a semi-monthly pay period). The Company reserves the right to modify its payroll practices and payroll schedule at its sole discretion. In addition, you are eligible to receive, as additional compensation, a discretionary annual bonus with respect to each full or partial year you are employed by the Company, including 2022, which discretionary bonus (if any) will be paid no later than March 15 of the immediately subsequent calendar year. Payment of a discretionary bonus in any given fiscal or calendar year does not entitle you to additional compensation or any such bonus in any subsequent year. In order to be eligible for any annual bonus while employed by the Company, you must be an active employee at, and not have given or received notice of termination prior to, the time of the annual bonus payment. | ||||
Benefits: | Effective on the Start Date, you (and your spouse, registered domestic partner and/or eligible dependents, if any) shall be entitled to participate in the same manner as other similarly situated employees of the Company in the employee benefit plans that are generally made available to similarly situated employees of the Company, subject to satisfying the applicable eligibility requirements. It is contemplated that the overall level of benefits you receive with respect to your employment with the Company will be comparable to the level of benefits you receive with respect to your employment with FIG LLC as of the date hereof, subject to the terms of the applicable plan documents and generally applicable Company policies. Notwithstanding the foregoing, the Company may modify or terminate any employee benefit plan at any time, at the Company’s sole discretion. For vesting and other benefit purposes, your length of service shall be considered to start on the start date of your employment with FIG LLC (the “FIG Start Date”) unless otherwise prohibited by applicable law or plan documents. In addition, you will be entitled to receive a one-time make whole payment, as determined by the Company in its sole discretion, to account for any unvested FIG LLC 401(k) amounts. Such payment will be made on or before the date on which the discretionary bonus for 2022 is paid, so long as you are an active employee at, and not have given or received notice of termination prior to, the time of the payment. | ||||
Paid Time Off: | During your employment, you will be entitled to paid time off (“Paid Time Off”) in accordance with the Company’s policy applicable to employees, as amended from time to time. | ||||
Representation: | You represent that on the Start Date, you will be free to accept employment hereunder without any contractual restrictions, express or implied, with respect to any of your prior employers, except for those restrictions with your prior employer, FIG LLC. You represent that you have not taken or otherwise misappropriated, and you do not have in your possession or control any confidential and proprietary information belonging to any of your prior employers or connected with or derived from your services to prior employers. You represent that you have returned to all prior employers any and all such confidential and proprietary information. You further acknowledge that the Company has informed you that you are not to use or cause the use of such confidential or proprietary information in any manner whatsoever in connection with your employment by the Company. You agree that you will not use such information. You represent that you are not currently a party to any pending or threatened litigation or arbitration, including with any current or former employer or business associate. In the event that you become a party to any pending or threatened litigation or arbitration after the date on which you sign this Letter Agreement but prior to your Start Date and at all times thereafter while you are employed by the Company, you shall promptly provide the Company with notice of such, in writing. You shall indemnify and hold harmless the Company from any and all claims arising from any breach of the representations and warranties in this paragraph. The above representations, warranties and acknowledgment do not apply to any confidential or proprietary information belonging to Fortress that you have had or continue to have access to as a result of your employment with FIG LLC, solely to the extent: (i) such information has been transferred by Fortress to the Company pursuant to the terms and conditions of a written agreement between Fortress and the Company; or (ii) Fortress has agreed, in writing, to provide you with such confidential or proprietary information. For purposes of this Letter Agreement, “Fortress” means FIG LLC, collectively with Fortress Investment Group LLC and its direct and indirect subsidiaries. You represent that you understand that this Letter Agreement sets forth the terms and conditions of your employment relationship with the Company and as such, you have no express or implied right to be treated the same as or more favorably than any other employee of the Company or any of its affiliates with respect to any matter set forth herein based on the terms or conditions of such person’s employment relationship with the Company or any of its affiliates. You further agree to keep the terms of this Letter Agreement confidential and not to disclose any of the terms or conditions hereof to any other person, including any employee of the Company, other than to your attorney or accountant or, upon the advice of counsel after notice to the Company, as may be required by law, except to the extent such disclosure is protected by applicable law. | ||||
Work Authorization: | Employment with the Company is contingent upon your unrestricted authorization to work in the United States and providing documentation establishing your identity and authority to work within the time period specified by law. | ||||
Policies and Procedures: | You agree to comply fully with all Company policies and procedures applicable to employees, as amended and implemented from time to time, including, without limitation, tax, regulatory and compliance. | ||||
Employment Relationship: | This Letter Agreement is not a contract of employment for any specific period of time, and subject to the notice provisions herein, your employment is “at will” and may be terminated by you or by the Company at any time for any reason or no reason whatsoever. In each case where the term the “Company” is used in this Letter Agreement it shall mean, in addition to the Company, any Company affiliate by whom you may be employed on a full-time basis at the applicable time. You agree that effective as of any separation from service with the Company, you will have been deemed to resign from all positions you may hold with the Company and its affiliates (including any board memberships), and will take any actions that may be reasonably required to effectuate such resignation, without prejudice against any rights you may otherwise have under this Agreement. You agree to provide the Company with at least ninety (90) days’ advance written notice of your resignation of employment (the “Notice Period,” which Notice Period shall be considered a “Protective Covenant” (as hereinafter defined) for purposes of this Letter Agreement). The Company may, in its sole discretion, direct you to cease performing your duties, refrain from entering the Company’s offices and/or restrict your access to the Company systems, trade secrets and confidential information, in each case during all or part of the Notice Period. During the Notice Period, you shall continue to be an employee of the Company, the Company shall continue to pay you your Base Salary and benefits, and you shall be entitled to all other benefits and entitlements as an employee until the end of the Notice Period; provided, that (i) you shall not be entitled to receive any bonus not already paid prior to the commencement of the Notice Period; (ii) your Base Salary, benefits, and entitlements shall cease if you breach any of your agreements with or obligations to the Company or any of its affiliates, including, without limitation, those “Protective Covenants” set forth below and incorporated herein; and (iii) such Notice Period shall be disregarded for purposes of the vesting of equity, if any). | ||||
Protective Covenants: | As a Company employee, at all times you owe the Company your undivided loyalty. You shall not, directly or indirectly, without prior written consent of the Company, at any time during your employment hereunder (including any Notice Period), provide consultative services to, own, manage, operate, join, control, participate in, be engaged in, employed by or be connected with, any business, individual, partner, firm, corporation, or other entity that directly or indirectly competes with (any such action, individually, and in the aggregate, to “compete with”), the Company (including, for these purposes, any of its affiliates). Notwithstanding anything else herein, the mere “beneficial ownership” by you, either individually or as a member of a “group” (as such terms are used in Rule 13(d) issued under the United States Securities Exchange Act of 1934, as amended from time to time) of not more than five percent (5%) of the voting stock of any public company shall not be deemed a violation of this Letter Agreement. You hereby agree that if you resign your employment or are terminated for Cause (as hereinafter defined) for twelve (12) months thereafter (which twelve (12) month period shall be inclusive of the Notice Period (as defined above)), you shall not directly or indirectly provide consultative services to, own, manage, operate, join, control, be employed by, participate in, or be connected with, any business, individual, partner, firm, corporation, or other entity that directly or indirectly competes with the business of the Company. You further agree that you shall not, directly or indirectly, for your benefit or for the benefit of any other person (including, without limitation, an individual or entity), or knowingly assist any other person to during your employment with the Company and for eighteen (18) months thereafter, in any manner, directly or indirectly: (a) hire or Solicit (as hereinafter defined) the employment or services of any person who provided services to the Company or any of its affiliates, as an employee, independent contractor or consultant at the time of the termination of your employment with the Company or within six (6) months prior thereto; | ||||
(b) Solicit any person who is an employee of the Company or any of its affiliates to resign from the Company or such affiliate or to apply for or accept employment with any enterprise; (c) accept employment or work, in any capacity (including as an employee, consultant or independent contractor), with any firm, corporation, partnership or other entity that is, directly or indirectly, owned or controlled by any Former Employee involving, directly or indirectly, the provision of services that are competitive with the Company or are substantially similar to the services that you provided to the Company at any time during the twelve months prior to your termination of employment with the Company; (d) Solicit or otherwise attempt to establish any business relationship (in connection with any business in competition with the Company or any of its affiliates) with any limited partner, investor, person, firm, corporation or other entity that is, at the time of your termination of employment, or was a Client, Investor, or Business Partner (as hereinafter defined) of the Company or any of its affiliates; or (e) interfere with or damage (or attempt to interfere with or damage) any relationship between the Company and any of its affiliates and their respective Clients, Investors, Business Partners, or employees. For purposes of this Letter Agreement, the term “Solicit” means, as applicable: (a) active solicitation of any Client, Investor, or Business Partner or Company employee; (b) the provision of non-public information regarding any Client, Investor, or Business Partner or Company employee to any third party where such information could be useful to such third party in attempting to obtain business from such Client, Investor, or Business Partner or attempting to hire any such Company employee; (c) participation in any meetings, discussions, or other communications with any third party regarding any Client, Investor, or Business Partner or Company employee where the purpose or effect of such meeting, discussion or communication is to obtain business from such Client, Investor, or Business Partner or employ such Company employee; and (d) any other intentional use of non-public information about any Client, Investor, or Business Partner, or Company employee for the purpose of assisting a third party to obtain business from Clients, Investors, or Business Partners, assisting a third party to hire any Company employee or causing harm to the business of the Company. For purposes of this Letter Agreement, the term “Client,” “Investor,” or “Business Partner” shall mean (A) anyone who is or has been a client, investor, or business partner of the Company during your employment, but only if you had a direct relationship with, direct supervisory responsibility for or otherwise were directly involved with such Client, Investor, or Business Partner during your employment with the Company; and (B) any prospective Client, Investor, or Business Partner to whom the Company made a new business presentation (or similar offering of services) at any time during the one-year period immediately preceding, or six- month period immediately following, your employment termination (but only if initial discussions between the Company and such prospective Client, Investor, or Business Partner relating to the rendering of services occurred prior to the termination date, and only if you participated in or supervised such presentation and/or its preparation or the discussions leading up to it). For purposes of this Letter Agreement, the term “Former Employee” shall mean anyone who was an employee of or exclusive consultant to the Company as of, or at any time during the one-year period immediately preceding, the termination of your employment. As a condition of employment, you shall be required to sign a confidentiality and proprietary rights agreement, in a form acceptable to the Company, and that agreement shall remain in full force and effect after it is executed and following termination of your employment for any reason with the Company or any of its affiliates. The obligations set forth in such agreement shall be considered “Protective Covenants” for purposes of this Letter Agreement and are incorporated herein by reference. The provisions set forth above in (or incorporated into) this “Protective Covenants” section, together with the Notice Period above, are collectively referred to in this Letter Agreement as the “Protective Covenants” (and each is a “Protective Covenant”). | |||||
The parties acknowledge that (i) the type and periods of restriction imposed in the Protective Covenants are fair and reasonable and are reasonably required in order to protect and maintain the proprietary interests of the Company or other legitimate business interests and the goodwill associated with the business of the Company; (ii) the time, scope, geographic area and other provisions of the Protective Covenants have been specifically negotiated by sophisticated commercial parties, represented by legal counsel; and (iii) because of the nature of the business engaged in by the Company and the fact that investors can be and are serviced and investments can be and are made by the Company wherever they are located, it is impractical and unreasonable to place a geographic limitation on the agreements made by you. If any of the covenants contained in the Protective Covenants, or any part thereof, is held to be unenforceable by reason of it extending for too great a period of time or over too great a geographic area or by reason of it being too extensive in any other respect, the parties agree (x) such covenant shall be interpreted to extend only over the maximum period of time for which it may be enforceable and/or over the maximum geographic areas as to which it may be enforceable and/or over the maximum extent in all other respects as to which it may be enforceable, all as determined by the court making such determination and (y) in its reduced form, such covenant shall then be enforceable, but such reduced form of covenant shall only apply with respect to the operation of such covenant in the particular jurisdiction in or for which such adjudication is made. Each of the agreements contained in the Protective Covenants is separate, distinct and severable. All rights, remedies and benefits expressly provided for in this Letter Agreement are cumulative and are not exclusive of any rights, remedies or benefits provided for by law or in this Letter Agreement, and the exercise of any remedy by a party hereto shall not be deemed an election to the exclusion of any other remedy (any such claim by the other party being hereby waived). The existence of any claim, demand, action or cause of action of you against the Company or any of its affiliates, whether predicated on this Letter Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of each Protective Covenant. The unenforceability of any Protective Covenant shall not affect the validity or enforceability of any other Protective Covenant or any other provision or provisions of this Letter Agreement. The temporal duration of the Protective Covenants shall not expire, and shall be tolled, during any period in which you are in violation of any of such Protective Covenants, and all such restrictions shall automatically be extended by the period of your violation of any such restrictions. Prior to accepting employment with any person, firm, corporation or other entity during your employment by the Company or any of its affiliates or any period thereafter that you are subject to any of the Protective Covenants, you shall (1) notify the prospective employer in writing of your obligations under such provisions and (2) within thirty days after your commencement of employment with any new employer, provide written notice to the General Counsel at the Company of such new employment, identifying such new employer. The failure of a party to this Letter Agreement to insist upon strict adherence to any term hereof on any occasion shall not be considered a waiver of such party’s rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Letter Agreement. This Letter Agreement, and all of your rights and duties hereunder, shall not be assignable or delegable by you. Any purported assignment or delegation by you in violation of the foregoing shall be null and void ab initio and of no further force and effect. This Letter Agreement may be assigned by New Residential Investment Corp. to any affiliate thereof or to a person or entity which is an affiliate or successor in interest to all or substantially all of the business operations of the Company. Upon such assignment, the rights and obligations of the Company hereunder shall become the rights and obligations of such affiliate person or entity. You shall provide reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during your employment. This provision shall survive any termination of this Letter Agreement. | |||||
The Company may withhold from any amounts and benefits due to you under this Letter Agreement such Federal, state and local taxes as may be required or permitted to be withheld pursuant to any applicable law or regulation. This Letter Agreement and Exhibit A contain the entire understanding of the parties and may be modified only in a document signed by the parties and referring explicitly to this Letter Agreement. If any provision of this Letter Agreement or Exhibit A is determined to be unenforceable, the remainder of this Letter Agreement or Exhibit A shall not be adversely affected thereby. Moreover, if any one or more of the provisions contained in this Letter Agreement or Exhibit A is held to be unenforceable, any such provision will be construed by limiting and reducing it so as to be enforceable to the maximum extent compatible with applicable law. In executing this Letter Agreement, you represent that you have not relied on any representation or statement not set forth herein, and you expressly disavow any reliance upon any such representations or statements. Without limitation to the foregoing, you represent that you understand that you shall not be entitled to any equity interest, profits interest or other interest in the Company or any of its affiliates, except as expressly set forth in this Letter Agreement or in another writing signed by the Company. The Company’s affiliates are intended beneficiaries under this Letter Agreement. | |||||