| 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, 2023 (Unaudited) | December 31, 2022 | ||||||||||
| Assets | |||||||||||
| Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value | $ | 8,688,556 | $ | 8,889,403 | |||||||
Real estate and other securities ($8,722,018 and $8,289,277 at fair value, respectively) | 9,701,000 | 8,289,277 | |||||||||
| Residential loans held-for-investment, at fair value | 400,206 | 452,519 | |||||||||
Residential mortgage loans, held-for-sale ($3,008,722 and $3,297,271 at fair value, respectively) | 3,092,667 | 3,398,298 | |||||||||
Consumer loans held-for-investment, at fair value(A) | 1,602,571 | 363,756 | |||||||||
| Single-family rental properties | 965,194 | 971,313 | |||||||||
Mortgage loans receivable, at fair value(A) | 1,939,499 | 2,064,028 | |||||||||
Residential mortgage loans subject to repurchase(B) | 1,296,097 | 1,219,890 | |||||||||
Cash and cash equivalents(A) | 1,369,025 | 1,336,508 | |||||||||
Restricted cash(A) | 319,765 | 281,126 | |||||||||
| Servicer advances receivable | 2,447,918 | 2,825,485 | |||||||||
| Receivable for investments sold | — | 473,126 | |||||||||
Other assets(A) | 2,035,581 | 1,914,607 | |||||||||
| $ | 33,858,079 | $ | 32,479,336 | ||||||||
| Liabilities and Equity | |||||||||||
| Liabilities | |||||||||||
Secured financing agreements(A) | $ | 12,757,428 | $ | 11,257,736 | |||||||
Secured notes and bonds payable ($574,120 and $632,404 at fair value, respectively)(A) | 10,315,006 | 10,098,943 | |||||||||
Residential mortgage loan repurchase liability(B) | 1,296,097 | 1,219,890 | |||||||||
| Unsecured senior notes, net of issuance costs | 545,930 | 545,056 | |||||||||
| Payable for investments purchased | — | 731,216 | |||||||||
| Dividends payable | 134,188 | 129,760 | |||||||||
Accrued expenses and other liabilities(A) | 1,614,746 | 1,486,667 | |||||||||
| 26,663,395 | 25,469,268 | ||||||||||
| Commitments and Contingencies | |||||||||||
| Equity | |||||||||||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 51,964,122 and 51,964,122 issued and outstanding, $1,299,104 and $1,299,104 aggregate liquidation preference, respectively | 1,257,254 | 1,257,254 | |||||||||
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 483,320,606 and 473,715,100 issued and outstanding, respectively | 4,834 | 4,739 | |||||||||
| Additional paid-in capital | 6,068,613 | 6,062,019 | |||||||||
| Retained earnings (accumulated deficit) | (236,222) | (418,662) | |||||||||
| Accumulated other comprehensive income | 39,954 | 37,651 | |||||||||
| Total Rithm Capital stockholders’ equity | 7,134,433 | 6,943,001 | |||||||||
Noncontrolling interests in equity of consolidated subsidiaries(A) | 60,251 | 67,067 | |||||||||
| Total equity | 7,194,684 | 7,010,068 | |||||||||
| $ | 33,858,079 | $ | 32,479,336 | ||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||
| (dollars in thousands, except share and per share data) | ||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | 465,562 | $ | 469,478 | $ | 935,401 | $ | 925,878 | |||||||||||||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(139,410), $(180,265), $(245,101) and $(380,590), respectively) | 22,032 | 334,690 | (120,272) | 909,454 | |||||||||||||||||||
| Servicing revenue, net | 487,594 | 804,168 | 815,129 | 1,835,332 | |||||||||||||||||||
| Interest income | 398,786 | 211,648 | 745,400 | 437,061 | |||||||||||||||||||
| Gain on originated residential mortgage loans, held-for-sale, net | 151,822 | 304,791 | 261,090 | 776,787 | |||||||||||||||||||
| 1,038,202 | 1,320,607 | 1,821,619 | 3,049,180 | ||||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Interest expense and warehouse line fees | 329,158 | 150,829 | 638,226 | 289,662 | |||||||||||||||||||
| General and administrative | 181,508 | 225,271 | 348,663 | 471,509 | |||||||||||||||||||
| Compensation and benefits | 189,606 | 339,658 | 378,486 | 732,277 | |||||||||||||||||||
| Management fee | — | 20,985 | — | 46,174 | |||||||||||||||||||
| Termination fee to affiliate | — | 400,000 | — | 400,000 | |||||||||||||||||||
| 700,272 | 1,136,743 | 1,365,375 | 1,939,622 | ||||||||||||||||||||
| Other Income (Loss) | |||||||||||||||||||||||
| Realized and unrealized gains (losses) on investments, net | 89,425 | (137,231) | 13,776 | (222,537) | |||||||||||||||||||
| Other income (loss), net | 15,860 | 59,388 | 46,338 | 111,720 | |||||||||||||||||||
| 105,285 | (77,843) | 60,114 | (110,817) | ||||||||||||||||||||
| Income Before Income Taxes | 443,215 | 106,021 | 516,358 | 998,741 | |||||||||||||||||||
| Income tax expense (benefit) | 56,530 | 72,690 | 39,724 | 275,479 | |||||||||||||||||||
| Net Income | $ | 386,685 | $ | 33,331 | $ | 476,634 | $ | 723,262 | |||||||||||||||
| Noncontrolling interests in income (loss) of consolidated subsidiaries | 6,889 | 14,182 | 5,589 | 19,791 | |||||||||||||||||||
| Dividends on preferred stock | 22,395 | 22,427 | 44,790 | 44,888 | |||||||||||||||||||
| Net Income (Loss) Attributable to Common Stockholders | $ | 357,401 | $ | (3,278) | $ | 426,255 | $ | 658,583 | |||||||||||||||
| Net Income (Loss) Per Share of Common Stock | |||||||||||||||||||||||
| Basic | $ | 0.74 | $ | (0.01) | $ | 0.89 | $ | 1.41 | |||||||||||||||
| Diluted | $ | 0.74 | $ | (0.01) | $ | 0.88 | $ | 1.36 | |||||||||||||||
| Weighted Average Number of Shares of Common Stock Outstanding | |||||||||||||||||||||||
| Basic | 483,091,792 | 466,804,548 | 480,642,680 | 466,795,119 | |||||||||||||||||||
| Diluted | 483,376,961 | 466,804,548 | 483,113,400 | 484,494,108 | |||||||||||||||||||
| Dividends Declared per Share of Common Stock | $ | 0.25 | $ | 0.25 | $ | 0.50 | $ | 0.50 | |||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) | ||
| (dollars in thousands) | ||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Net income | $ | 386,685 | $ | 33,331 | $ | 476,634 | $ | 723,262 | |||||||||||||||
| Other comprehensive income, net of tax: | |||||||||||||||||||||||
| Unrealized gain (loss) on available-for-sale securities, net | (677) | (9,575) | 2,303 | (32,633) | |||||||||||||||||||
| Comprehensive income | 386,008 | 23,756 | 478,937 | 690,629 | |||||||||||||||||||
| Comprehensive income (loss) attributable to noncontrolling interests | 6,889 | 14,182 | 5,589 | 19,791 | |||||||||||||||||||
| Dividends on preferred stock | 22,395 | 22,427 | 44,790 | 44,888 | |||||||||||||||||||
| Comprehensive income (loss) attributable to common stockholders | $ | 356,724 | $ | (12,853) | $ | 428,558 | $ | 625,950 | |||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) | ||
FOR THE THREE MONTHS ENDED JUNE 30, 2023 AND 2022 | ||
| (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, 2023 | 51,964,122 | $ | 1,257,254 | 483,017,747 | $ | 4,832 | $ | 6,062,051 | $ | (470,562) | $ | 40,631 | $ | 6,894,206 | $ | 60,337 | $ | 6,954,543 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock, $0.25 per share | — | — | — | — | — | (120,830) | — | (120,830) | — | (120,830) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | (22,395) | — | (22,395) | — | (22,395) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital distributions | — | — | — | — | — | — | — | — | (6,975) | (6,975) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Director share grants and employee non-cash stock-based compensation | — | — | 302,859 | 2 | 6,562 | (2,231) | — | 4,333 | — | 4,333 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | — | 379,796 | — | 379,796 | 6,889 | 386,685 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized gain (loss) on available-for-sale securities, net | — | — | — | — | — | — | (677) | (677) | — | (677) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income (loss) | 379,119 | 6,889 | 386,008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2023 | 51,964,122 | $ | 1,257,254 | 483,320,606 | $ | 4,834 | $ | 6,068,613 | $ | (236,222) | $ | 39,954 | $ | 7,134,433 | $ | 60,251 | $ | 7,194,684 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) | ||
FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022 | ||
| (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, 2022 | 51,964,122 | — | $ | 1,257,254 | $ | — | 473,715,100 | $ | — | $ | 4,739 | $ | — | $ | 6,062,019 | $ | — | $ | (418,662) | $ | — | $ | 37,651 | $ | — | $ | 6,943,001 | $ | — | $ | 67,067 | $ | — | $ | 7,010,068 | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock, $0.50 per share | — | — | — | — | — | (241,584) | — | (241,584) | — | (241,584) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | (44,790) | — | (44,790) | — | (44,790) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital distributions | — | — | — | — | — | — | — | — | (12,405) | (12,405) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cashless exercise of 2020 Warrants | — | — | 9,287,347 | 93 | (93) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Director share grants and employee non-cash stock-based compensation | — | — | 318,159 | 2 | 6,687 | (2,231) | — | 4,458 | — | 4,458 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | — | 471,045 | — | 471,045 | 5,589 | 476,634 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized gain (loss) on available-for-sale securities, net | — | — | — | — | — | — | 2,303 | 2,303 | 2,303 | — | 2,303 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income (loss) | 473,348 | 5,589 | 478,937 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2023 | 51,964,122 | $ | 1,257,254 | 483,320,606 | $ | 4,834 | $ | 6,068,613 | $ | (236,222) | $ | 39,954 | $ | 7,134,433 | $ | 60,251 | $ | 7,194,684 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||
| (dollars in thousands) | ||
| Six Months Ended June 30, | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| Cash Flows From Operating Activities | ||||||||||||||
| Net income | $ | 476,634 | $ | 723,262 | ||||||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||
| Change in fair value of investments, net | 269,530 | 381,159 | ||||||||||||
| Change in fair value of equity investments | 27,630 | 9,111 | ||||||||||||
| Change in fair value of secured notes and bonds payable | (2,049) | (35,151) | ||||||||||||
| (Gain) loss on settlement of investments, net | (283,306) | (158,622) | ||||||||||||
| (Gain) loss on sale of originated residential mortgage loans, held-for-sale, net | (261,090) | (776,787) | ||||||||||||
| (Gain) loss on transfer of loans to REO | (7,472) | (4,039) | ||||||||||||
| Accretion and other amortization | (37,711) | (34,731) | ||||||||||||
| Provision (reversal) for credit losses on securities, loans and real estate owned | 3,009 | 7,528 | ||||||||||||
| Non-cash portions of servicing revenue, net | 120,272 | (979,079) | ||||||||||||
| Deferred tax provision | 39,626 | 275,458 | ||||||||||||
| Mortgage loans originated and purchased for sale, net of fees | (18,109,588) | (50,321,003) | ||||||||||||
| Sales proceeds and loan repayment proceeds for residential mortgage loans, held-for-sale | 18,491,330 | 55,755,342 | ||||||||||||
| Interest received from servicer advance investments, RMBS, loans and other | 27,874 | 31,394 | ||||||||||||
| Changes in: | ||||||||||||||
| Servicer advances receivable, net | 377,567 | 294,452 | ||||||||||||
| Other assets | 16,191 | 72,498 | ||||||||||||
| Due to affiliate | — | (17,819) | ||||||||||||
| Accrued expenses and other liabilities | 83,799 | 132,325 | ||||||||||||
| Net cash provided by (used in) operating activities | 1,232,246 | 5,355,298 | ||||||||||||
| Cash Flows From Investing Activities | ||||||||||||||
| Purchase of servicer advance investments | (445,470) | (500,000) | ||||||||||||
| Purchase of MSRs, MSR financing receivables and servicer advances receivable | — | (603) | ||||||||||||
| Purchase of RMBS | (2,898,237) | (1,052,724) | ||||||||||||
| Purchase of U.S. Treasury Bills | (973,795) | — | ||||||||||||
| Purchase of residential mortgage loans | (1,269) | (7,182) | ||||||||||||
| Purchase of SFR properties, real estate owned and other assets | (11,975) | (355,002) | ||||||||||||
| Draws on revolving consumer loans | (13,493) | (14,350) | ||||||||||||
| Net settlement of derivatives | 291,174 | 279,306 | ||||||||||||
| Return of investments in Excess MSRs | 16,489 | 7,873 | ||||||||||||
| Principal repayments from servicer advance investments | 464,921 | 541,868 | ||||||||||||
| Principal repayments from RMBS | 331,176 | 687,624 | ||||||||||||
| Principal repayments from residential mortgage loans | 21,364 | 49,806 | ||||||||||||
| Principal repayments from consumer loans | 86,164 | 79,298 | ||||||||||||
| Principal repayments from MSRs and MSR financing receivables | — | 1,216 | ||||||||||||
| Proceeds from sale of MSRs and MSR financing receivables | 424,034 | 2,105 | ||||||||||||
| Proceeds from sale of RMBS | 1,869,053 | 738,887 | ||||||||||||
| Proceeds from sale of real estate owned | 13,175 | 7,210 | ||||||||||||
| Net cash provided by (used in) investing activities | (826,689) | 465,332 | ||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED), CONTINUED | ||
| (dollars in thousands) | ||
| Six Months Ended June 30, | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| Cash Flows From Financing Activities | ||||||||||||||
| Repayments of secured financing agreements | (24,321,697) | (23,318,214) | ||||||||||||
| Repayments of warehouse credit facilities | (18,980,639) | (56,240,720) | ||||||||||||
| Net settlement of margin deposits under repurchase agreements and derivatives | (411,796) | 812,477 | ||||||||||||
| Repayments of secured notes and bonds payable | (3,538,076) | (2,220,042) | ||||||||||||
| Deferred financing fees | (11,740) | (1,398) | ||||||||||||
| Dividends paid on common and preferred stock | (284,262) | (278,293) | ||||||||||||
| Borrowings under secured financing agreements | 26,093,901 | 21,936,667 | ||||||||||||
| Borrowings under warehouse credit facilities | 18,706,720 | 50,995,092 | ||||||||||||
| Borrowings under secured notes and bonds payable | 2,425,593 | 2,929,949 | ||||||||||||
| Repurchase of preferred stock | — | (3,814) | ||||||||||||
| Noncontrolling interest in equity of consolidated subsidiaries - distributions | (12,405) | (15,968) | ||||||||||||
| Net cash provided by (used in) financing activities | (334,401) | (5,404,264) | ||||||||||||
| Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 71,156 | 416,366 | ||||||||||||
| Cash, Cash Equivalents and Restricted Cash, Beginning of Period | $ | 1,617,634 | $ | 1,528,442 | ||||||||||
| Cash, Cash Equivalents and Restricted Cash, End of Period | $ | 1,688,790 | $ | 1,944,808 | ||||||||||
| Supplemental Disclosure of Cash Flow Information | ||||||||||||||
| Cash paid during the period for interest | 624,519 | 280,007 | ||||||||||||
| Cash paid during the period for income taxes | 1,798 | 1,636 | ||||||||||||
| Supplemental Schedule of Non-Cash Investing and Financing Activities | ||||||||||||||
| Dividends declared but not paid on common and preferred stock | 143,225 | 139,141 | ||||||||||||
| Transfer from residential mortgage loans to real estate owned and other assets | 14,662 | 4,890 | ||||||||||||
| Real estate securities retained from loan securitizations | 15,241 | 100,324 | ||||||||||||
| Residential mortgage loans subject to repurchase | 1,296,097 | 1,758,509 | ||||||||||||
| Cashless exercise of 2020 warrants (par) | 93 | — | ||||||||||||
| Cashless purchase of consumer loans | 1,317,347 | — | ||||||||||||
| 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 | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | — | $ | 359,854 | $ | 105,708 | $ | 465,562 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 465,562 | ||||||||||||||||||||||||||||||||||||||||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(139,410)) | — | 45,767 | (23,735) | 22,032 | — | — | — | — | — | 22,032 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing revenue, net | — | 405,621 | 81,973 | 487,594 | — | — | — | — | — | 487,594 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income | 26,552 | 102,687 | 35,622 | 164,861 | 122,476 | 26,291 | 24,401 | 58,809 | 1,948 | 398,786 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on originated residential mortgage loans, held-for-sale, net | 134,130 | 10,188 | — | 144,318 | 1,247 | 6,257 | — | — | — | 151,822 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues | 160,682 | 518,496 | 117,595 | 796,773 | 123,723 | 32,548 | 24,401 | 58,809 | 1,948 | 1,038,202 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 28,613 | 81,606 | 30,368 | 140,587 | 115,572 | 30,830 | 4,315 | 29,282 | 8,572 | 329,158 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| G&A and other | 143,064 | 94,074 | 75,295 | 312,433 | 1,560 | 19,242 | 2,734 | 14,795 | 20,350 | 371,114 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 171,677 | 175,680 | 105,663 | 453,020 | 117,132 | 50,072 | 7,049 | 44,077 | 28,922 | 700,272 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Realized and unrealized gains (losses) on investments, net | (112) | 386 | 10,311 | 10,585 | 77,442 | (7,936) | (3,994) | 13,328 | — | 89,425 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income (loss), net | 255 | (5,434) | 34,428 | 29,249 | (2,035) | 17,998 | 5,396 | (822) | (33,926) | 15,860 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other income (loss) | 143 | (5,048) | 44,739 | 39,834 | 75,407 | 10,062 | 1,402 | 12,506 | (33,926) | 105,285 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | (10,852) | 337,768 | 56,671 | 383,587 | 81,998 | (7,462) | 18,754 | 27,238 | (60,900) | 443,215 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | (2,718) | 51,925 | 3,308 | 52,515 | — | 4,948 | 48 | (981) | — | 56,530 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | (8,134) | 285,843 | 53,363 | 331,072 | 81,998 | (12,410) | 18,706 | 28,219 | (60,900) | 386,685 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests in income (loss) of consolidated subsidiaries | 386 | — | 845 | 1,231 | — | — | 5,658 | — | — | 6,889 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends on preferred stock | — | — | — | — | — | — | — | — | 22,395 | 22,395 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | (8,520) | $ | 285,843 | $ | 52,518 | $ | 329,841 | $ | 81,998 | $ | (12,410) | $ | 13,048 | $ | 28,219 | $ | (83,295) | $ | 357,401 | ||||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | — | $ | 709,278 | $ | 226,123 | $ | 935,401 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 935,401 | ||||||||||||||||||||||||||||||||||||||||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(245,101)) | — | 8,241 | (128,513) | (120,272) | — | — | — | — | — | (120,272) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing revenue, net | — | 717,519 | 97,610 | 815,129 | — | — | — | — | — | 815,129 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income | 52,085 | 186,920 | 60,181 | 299,186 | 236,723 | 49,057 | 38,688 | 117,146 | 4,600 | 745,400 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on originated residential mortgage loans, held-for-sale, net | 246,952 | 5,587 | — | 252,539 | 1,247 | 7,304 | — | — | — | 261,090 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues | 299,037 | 910,026 | 157,791 | 1,366,854 | 237,970 | 56,361 | 38,688 | 117,146 | 4,600 | 1,821,619 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 58,608 | 162,680 | 62,070 | 283,358 | 213,864 | 57,022 | 5,995 | 59,974 | 18,013 | 638,226 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| G&A and other | 283,576 | 194,908 | 144,536 | 623,020 | 2,190 | 28,625 | 4,500 | 31,026 | 37,788 | 727,149 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 342,184 | 357,588 | 206,606 | 906,378 | 216,054 | 85,647 | 10,495 | 91,000 | 55,801 | 1,365,375 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Realized and unrealized gains (losses) on investments, net | 56 | 195 | (2,087) | (1,836) | 31,443 | (14,363) | (9,984) | 8,516 | — | 13,776 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income (loss), net | (335) | (18,271) | 70,349 | 51,743 | (1,870) | 42,179 | (3,326) | 891 | (43,279) | 46,338 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other income (loss) | (279) | (18,076) | 68,262 | 49,907 | 29,573 | 27,816 | (13,310) | 9,407 | (43,279) | 60,114 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | (43,426) | 534,362 | 19,447 | 510,383 | 51,489 | (1,470) | 14,883 | 35,553 | (94,480) | 516,358 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | (10,878) | 56,413 | (4,063) | 41,472 | — | 1,220 | 107 | (3,075) | — | 39,724 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | (32,548) | 477,949 | 23,510 | 468,911 | 51,489 | (2,690) | 14,776 | 38,628 | (94,480) | 476,634 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests in income (loss) of consolidated subsidiaries | 344 | — | 699 | 1,043 | — | — | 4,546 | — | — | 5,589 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends on preferred stock | — | — | — | — | — | — | — | — | 44,790 | 44,790 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | (32,892) | $ | 477,949 | $ | 22,811 | $ | 467,868 | $ | 51,489 | $ | (2,690) | $ | 10,230 | $ | 38,628 | $ | (139,270) | $ | 426,255 | ||||||||||||||||||||||||||||||||||||||||||
| 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 | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments | $ | 1,824,653 | $ | 7,014,766 | $ | 1,962,023 | $ | 10,801,442 | $ | 9,701,000 | $ | 2,345,181 | $ | 1,602,571 | $ | 1,939,499 | $ | — | $ | 26,389,693 | ||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 223,222 | 513,195 | 298,632 | 1,035,049 | 268,083 | 546 | 1,000 | 49,375 | 14,972 | 1,369,025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restricted cash | 41,621 | 125,706 | 71,069 | 238,396 | 4,154 | 11,849 | 21,454 | 43,912 | — | 319,765 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 159,964 | 2,371,343 | 2,526,478 | 5,057,785 | 230,001 | 100,699 | 79,106 | 119,642 | 107,164 | 5,694,397 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | 11,836 | 12,540 | 5,092 | 29,468 | — | — | — | 55,731 | — | 85,199 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 2,261,296 | $ | 10,037,550 | $ | 4,863,294 | $ | 17,162,140 | $ | 10,203,238 | $ | 2,458,275 | $ | 1,704,131 | $ | 2,208,159 | $ | 122,136 | $ | 33,858,079 | ||||||||||||||||||||||||||||||||||||||||||
| Debt | $ | 1,741,717 | $ | 4,255,588 | $ | 2,886,131 | $ | 8,883,436 | $ | 9,203,274 | $ | 1,923,139 | $ | 1,441,648 | $ | 1,620,937 | $ | 545,930 | $ | 23,618,364 | ||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 204,083 | 2,202,768 | 50,832 | 2,457,683 | 73,121 | 320,311 | 3,888 | 15,890 | 174,138 | 3,045,031 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 1,945,800 | 6,458,356 | 2,936,963 | 11,341,119 | 9,276,395 | 2,243,450 | 1,445,536 | 1,636,827 | 720,068 | 26,663,395 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total equity | 315,496 | 3,579,194 | 1,926,331 | 5,821,021 | 926,843 | 214,825 | 258,595 | 571,332 | (597,932) | 7,194,684 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests in equity of consolidated subsidiaries | 9,978 | — | 11,612 | 21,590 | — | — | 38,661 | — | — | 60,251 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Rithm Capital stockholders’ equity | $ | 305,518 | $ | 3,579,194 | $ | 1,914,719 | $ | 5,799,431 | $ | 926,843 | $ | 214,825 | $ | 219,934 | $ | 571,332 | $ | (597,932) | $ | 7,134,433 | ||||||||||||||||||||||||||||||||||||||||||
| Investments in equity method investees | $ | — | $ | — | $ | 66,770 | $ | 66,770 | $ | — | $ | — | $ | — | $ | — | $ | 22,620 | $ | 89,390 | ||||||||||||||||||||||||||||||||||||||||||
| 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 | $ | — | $ | 345,114 | $ | 124,364 | $ | 469,478 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 469,478 | ||||||||||||||||||||||||||||||||||||||||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(180,265)) | — | 344,329 | (9,639) | 334,690 | — | — | — | — | — | 334,690 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing revenue, net | — | 689,443 | 114,725 | 804,168 | — | — | — | — | — | 804,168 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | 721,939 | 126,065 | 1,196,936 | 54,584 | 8,976 | 18,109 | 36,748 | 5,254 | 1,320,607 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | 349,432 | 105,796 | 70,000 | 525,228 | 710 | 11,891 | 2,160 | 14,600 | 431,325 | 985,914 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 377,010 | 146,892 | 95,788 | 619,690 | 20,926 | 23,223 | 4,248 | 27,280 | 441,376 | 1,136,743 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Realized and unrealized gains (losses) on investments, net | — | (1,780) | (49) | (1,829) | (124,034) | 6,601 | (7,196) | (10,773) | — | (137,231) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income (loss), net | 1,832 | 5,192 | 11,295 | 18,319 | (2,127) | 29,471 | 15,725 | 7,430 | (9,430) | 59,388 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other income (loss) | 1,832 | 3,412 | 11,246 | 16,490 | (126,161) | 36,072 | 8,529 | (3,343) | (9,430) | (77,843) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | $ | — | $ | 671,510 | $ | 254,368 | $ | 925,878 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 925,878 | ||||||||||||||||||||||||||||||||||||||||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(380,590)) | — | 841,331 | 68,123 | 909,454 | — | — | — | — | — | 909,454 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing revenue, net | — | 1,512,841 | 322,491 | 1,835,332 | — | — | — | — | — | 1,835,332 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | 1,618,452 | 349,533 | 2,781,956 | 110,933 | 36,531 | 37,042 | 71,025 | 11,693 | 3,049,180 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | 758,190 | 208,629 | 147,957 | 1,114,776 | 1,482 | 35,325 | 4,414 | 31,008 | 462,955 | 1,649,960 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 815,203 | 283,431 | 200,110 | 1,298,744 | 30,727 | 67,525 | 8,764 | 50,657 | 483,205 | 1,939,622 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Realized and unrealized gains (losses) on investments, net | — | (1,812) | (3,343) | (5,155) | (200,563) | 18,765 | (20,929) | (14,655) | — | (222,537) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income (loss), net | 3,927 | 6,135 | 40,176 | 50,238 | (4,727) | 43,787 | 24,497 | 7,430 | (9,505) | 111,720 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other income (loss) | 3,927 | 4,323 | 36,833 | 45,083 | (205,290) | 62,552 | 3,568 | (7,225) | (9,505) | (110,817) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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) | (6) | 312,352 | 40,929 | 353,275 | — | 1,177 | 38 | (3,623) | (75,388) | 275,479 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | 196 | 1,026,992 | 145,327 | 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 | $ | (1,498) | $ | 1,026,992 | $ | 145,058 | $ | 1,173,057 | $ | (125,084) | $ | 30,381 | $ | 13,980 | $ | 16,766 | $ | (450,517) | $ | 658,583 | ||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Base servicing | |||||||||||||||||||||||
| MSR-owned assets | $ | 304,912 | $ | 287,904 | $ | 603,871 | $ | 550,755 | |||||||||||||||
| Residential whole loans | 1,920 | 3,019 | 4,336 | 6,408 | |||||||||||||||||||
| Third party | 23,015 | 23,069 | 45,378 | 46,722 | |||||||||||||||||||
| 329,847 | 313,992 | 653,585 | 603,885 | ||||||||||||||||||||
| Other fees | |||||||||||||||||||||||
Ancillary and other fees(A) | 30,007 | 31,122 | 55,693 | 67,625 | |||||||||||||||||||
| Change in fair value due to: | |||||||||||||||||||||||
| Realization of cash flows | (103,034) | (117,680) | (175,049) | (250,956) | |||||||||||||||||||
| Change in valuation inputs and assumptions and other | 148,801 | 462,009 | 183,290 | 1,092,287 | |||||||||||||||||||
Total servicing fees | $ | 405,621 | $ | 689,443 | $ | 717,519 | $ | 1,512,841 | |||||||||||||||
| Servicing data – unpaid principal balance (“UPB”) (period end) (in millions) | |||||||||||||||||||||||
| UPB – MSR-owned assets | $ | 401,628 | $ | 399,900 | $ | 401,628 | $ | 399,900 | |||||||||||||||
| UPB – Residential whole loans | 8,753 | 10,959 | 8,753 | 10,959 | |||||||||||||||||||
| UPB – Third party | 95,603 | 87,190 | 95,603 | 87,190 | |||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2023 | December 31, 2022 | ||||||||||
| Direct investments in Excess MSRs | $ | 224,632 | $ | 249,366 | |||||||
| Excess MSR Joint Ventures | 66,770 | 72,437 | |||||||||
| Excess mortgage servicing rights, at fair value | $ | 291,402 | $ | 321,803 | |||||||
Total(A) | |||||
| Balance as of December 31, 2022 | $ | 249,366 | |||
| Interest income | 9,391 | ||||
| Other income | — | ||||
| Proceeds from repayments | (23,005) | ||||
| Proceeds from sales | (703) | ||||
| Change in fair value | (10,417) | ||||
Balance as of June 30, 2023 | $ | 224,632 | |||
| June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
| UPB of Underlying Mortgages | Interest in Excess MSR | Weighted Average Life Years(A) | Amortized Cost Basis | Carrying Value(B) | Carrying Value(B) | |||||||||||||||||||||||||||||||||||||||
Rithm Capital(C, D) | Former Manager-managed funds | Mr. Cooper | ||||||||||||||||||||||||||||||||||||||||||
| $ | 46,130,066 | 32.5% – 100.0% (56.5%) | 0.0% – 50% | 0.0% – 35.0% | 6.3 | $ | 193,154 | $ | 224,632 | $ | 249,366 | |||||||||||||||||||||||||||||||||
| 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, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Original and Recaptured Pools | $ | (599) | $ | 1,066 | $ | (10,417) | $ | (1,564) | |||||||||||||||
| June 30, 2023 | December 31, 2022 | ||||||||||
| Excess MSR | $ | 123,668 | $ | 135,356 | |||||||
| Other assets | 10,558 | 10,204 | |||||||||
| Other liabilities | (687) | (687) | |||||||||
| Equity | $ | 133,539 | $ | 144,873 | |||||||
| Rithm Capital’s investment | $ | 66,770 | $ | 72,437 | |||||||
| Rithm Capital’s percentage ownership | 50.0 | % | 50.0 | % | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Interest income | $ | 3,278 | $ | 410 | $ | 5,682 | $ | 6,077 | |||||||||||||||
| Other income (loss) | 666 | (91) | (4,558) | (2,343) | |||||||||||||||||||
| Expenses | (8) | (8) | (16) | (16) | |||||||||||||||||||
| Net income (loss) | $ | 3,936 | $ | 311 | $ | 1,108 | $ | 3,718 | |||||||||||||||
| Balance at December 31, 2022 | $ | 72,437 | |||
| Distributions of capital from equity method investees | (6,221) | ||||
| Change in fair value of investments in equity method investees | 554 | ||||
| Balance at June 30, 2023 | $ | 66,770 | |||
| June 30, 2023 | |||||||||||||||||||||||||||||||||||
| 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 | $ | 18,193,581 | 66.7 | % | 50.0 | % | $ | 99,628 | $ | 123,668 | 5.3 | ||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Balance as of December 31, 2022 | $ | 8,889,403 | |||
Purchases, net(A) | — | ||||
Originations(B) | 342,816 | ||||
Proceeds from sales(C) | (423,391) | ||||
| Change in fair value due to: | |||||
Amortization of servicing rights(D) | (245,101) | ||||
| Change in valuation inputs and assumptions | 124,829 | ||||
| Balance at June 30, 2023 | $ | 8,688,556 | |||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | 432,965 | $ | 434,789 | $ | 872,197 | $ | 856,344 | |||||||||||||||
| Ancillary and other fees | 32,597 | 34,689 | 63,204 | 69,534 | |||||||||||||||||||
| Servicing fee revenue, net and fees | 465,562 | 469,478 | 935,401 | 925,878 | |||||||||||||||||||
| Change in fair value due to: | |||||||||||||||||||||||
| Amortization of servicing rights | (139,410) | (180,265) | (245,101) | (380,590) | |||||||||||||||||||
| Change in valuation inputs and assumptions, net of realized gains (losses) | 161,442 | 514,955 | 124,829 | 1,359,669 | |||||||||||||||||||
| Change in fair value of derivative instruments | — | — | — | 7,189 | |||||||||||||||||||
| Gain (loss) on settlement of derivative instruments | — | — | — | (76,814) | |||||||||||||||||||
| Servicing revenue, net | $ | 487,594 | $ | 804,168 | $ | 815,129 | $ | 1,835,332 | |||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| UPB of Underlying Mortgages | Weighted Average Life (Years)(A) | Carrying Value(B) | |||||||||||||||
| Agency | $ | 357,246,649 | 7.6 | $ | 5,703,219 | ||||||||||||
| Non-Agency | 51,345,436 | 6.7 | 722,415 | ||||||||||||||
Ginnie Mae(C) | 123,799,933 | 7.2 | 2,262,922 | ||||||||||||||
| Total/Weighted Average | $ | 532,392,018 | 7.4 | $ | 8,688,556 | ||||||||||||
| 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, 2023 | December 31, 2022 | ||||||||||||
| California | 17.3 | % | 17.4 | % | ||||||||||
| Florida | 8.6 | % | 8.6 | % | ||||||||||
| Texas | 6.2 | % | 6.2 | % | ||||||||||
| New York | 6.0 | % | 6.0 | % | ||||||||||
| Washington | 5.8 | % | 5.9 | % | ||||||||||
| New Jersey | 4.4 | % | 4.4 | % | ||||||||||
| Virginia | 3.6 | % | 3.6 | % | ||||||||||
| Maryland | 3.4 | % | 3.4 | % | ||||||||||
| Illinois | 3.4 | % | 3.4 | % | ||||||||||
| Georgia | 3.0 | % | 2.9 | % | ||||||||||
| Other U.S. | 38.3 | % | 38.2 | % | ||||||||||
| 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, 2023 | December 31, 2022 | ||||||||||
| Principal and interest advances | $ | 575,916 | $ | 664,495 | |||||||
| Escrow advances (taxes and insurance advances) | 1,159,663 | 1,426,409 | |||||||||
| Foreclosure advances | 763,999 | 754,073 | |||||||||
Total(A)(B)(C) | $ | 2,499,578 | $ | 2,844,977 | |||||||
| Balance at December 31, 2022 | $ | 65,428 | |||
| Provision | 41,541 | ||||
| Write-offs | (14,088) | ||||
| Balance at June 30, 2023 | $ | 92,881 | |||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Amortized Cost Basis | Carrying Value(A) | Weighted Average Discount Rate | Weighted Average Yield | Weighted Average Life (Years)(B) | |||||||||||||||||||||||||
| June 30, 2023 | |||||||||||||||||||||||||||||
| Servicer advance investments | $ | 371,955 | $ | 385,927 | 5.7 | % | 6.0 | % | 8.1 | ||||||||||||||||||||
| December 31, 2022 | |||||||||||||||||||||||||||||
| Servicer advance investments | $ | 392,749 | $ | 398,820 | 5.7 | % | 5.6 | % | 8.4 | ||||||||||||||||||||
| 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, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Servicer advance investments(D) | $ | 16,235,846 | $ | 327,574 | 2.0 | % | $ | 295,215 | 87.4 | % | 85.2 | % | 7.3 | % | 6.7 | % | |||||||||||||||||||||||||||||||
| December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Servicer advance investments(D) | $ | 17,033,753 | $ | 341,628 | 2.0 | % | $ | 319,276 | 90.2 | % | 88.3 | % | 6.5 | % | 5.9 | % | |||||||||||||||||||||||||||||||
| June 30, 2023 | December 31, 2022 | |||||||||||||
| Principal and interest advances | $ | 60,545 | $ | 66,892 | ||||||||||
| Escrow advances (taxes and insurance advances) | 146,201 | 155,438 | ||||||||||||
| Foreclosure advances | 120,828 | 119,298 | ||||||||||||
| Total | $ | 327,574 | $ | 341,628 | ||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outstanding Face Amount | Gains | Losses | Carrying Value(A) | Number of Securities | Coupon(B) | Yield | Life (Years)(C) | Principal Subordination(D) | Carrying Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| RMBS Designated as Available for Sale (AFS): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency(E) | $ | 77,260 | $ | — | $ | — | $ | 69,217 | 1 | 3.5 | % | 3.5 | % | 11.0 | N/A | $ | 73,439 | |||||||||||||||||||||||||||||||||||||||||||||
Non-Agency(F)(G) | 2,554,308 | 71,518 | (30,523) | 379,957 | 333 | 3.5 | % | 3.8 | % | 5.5 | 29.7 | % | 397,076 | |||||||||||||||||||||||||||||||||||||||||||||||||
| RMBS Measured at Fair Value through Net Income (FVO): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency(E) | 7,822,721 | 56,076 | (23,931) | 7,700,458 | 38 | 5.1 | % | 5.1 | % | 8.9 | N/A | 7,264,978 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency(F)(G) | 14,997,590 | 73,761 | (89,671) | 572,386 | 354 | 2.9 | % | 5.7 | % | 7.4 | 15.8 | % | 553,784 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total/Weighted Average | $ | 25,451,879 | $ | 201,355 | $ | (144,125) | $ | 8,722,018 | 726 | 4.9 | % | 5.1 | % | 8.7 | $ | 8,289,277 | ||||||||||||||||||||||||||||||||||||||||||||||
| Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||||||||||||||||||
| Asset Type | Outstanding Face Amount | Gains | Losses | Carrying Value | Number of Securities | Coupon | Yield | Life (Years) | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 514 | $ | 6 | $ | — | $ | 503 | 2 | 8.2 | % | 9.4 | % | 1.7 | ||||||||||||||||||||||||||||||||||||
Consumer loan bonds | 340 | 613 | — | 616 | 2 | N/A | N/A | 0.2 | ||||||||||||||||||||||||||||||||||||||||||
Fair value option securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-only securities | 9,522,980 | 38,526 | (30,347) | 154,552 | 145 | 0.8 | % | 8.2 | % | 2.3 | ||||||||||||||||||||||||||||||||||||||||
Servicing strips | 4,178,674 | 26,181 | (3,110) | 62,481 | 61 | 0.4 | % | 10.9 | % | 3.8 | ||||||||||||||||||||||||||||||||||||||||
| Commercial Mortgage Backed Securities | 3,931 | 94 | — | 3,869 | 2 | 7.7 | % | 7.7 | % | 1.8 | ||||||||||||||||||||||||||||||||||||||||
| 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, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | Treasury | Agency | Non-Agency | Agency | Non-Agency | Treasury | Agency | Non-Agency | Agency | Non-Agency | |||||||||||||||||||||||||||||||||||||||||||||||||
| Purchases | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Face | $ | 1,000.0 | $ | — | $ | 447.4 | $ | — | $ | 1,073.0 | $ | 1,000.0 | $ | 2,162.4 | $ | 472.6 | $ | 998.2 | $ | 3,283.1 | |||||||||||||||||||||||||||||||||||||||
| Purchase price | 973.8 | — | 30.2 | — | 32.9 | 973.8 | 2,154.4 | 32.6 | 1,004.5 | 148.6 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Sales | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Face | $ | — | $ | — | $ | — | $ | 829.8 | $ | — | $ | — | $ | 1,462.4 | $ | — | $ | 829.8 | $ | — | |||||||||||||||||||||||||||||||||||||||
| Amortized cost | — | — | 0.2 | 857.0 | — | — | 1,442.8 | 0.2 | 857.0 | 1.6 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Sale price | — | — | — | 738.9 | — | — | 1,395.9 | — | 738.9 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) on sale | — | — | (0.2) | (118.1) | — | — | (46.9) | (0.2) | (118.1) | (1.6) | |||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | Coupon | Yield | Life (Years) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | $ | 68,200 | $ | 59,715 | $ | — | $ | 59,715 | $ | (5,143) | $ | 54,572 | 71 | 3.0 | % | 4.0 | % | 4.9 | ||||||||||||||||||||||||||||||||||||||||||||
12 or More Months | 311,114 | 303,980 | (11,624) | 292,356 | (25,380) | 266,976 | 127 | 3.7 | % | 3.6 | % | 7.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average | $ | 379,314 | $ | 363,695 | $ | (11,624) | $ | 352,071 | $ | (30,523) | $ | 321,548 | 198 | 3.6 | % | 3.7 | % | 6.7 | ||||||||||||||||||||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
| 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 | 73,616 | 73,965 | (11,624) | (349) | 77,843 | 78,101 | (10,816) | (258) | |||||||||||||||||||||||||||||||||||||||
| Non-credit impaired securities | 247,932 | 278,106 | — | (30,174) | 271,405 | 304,831 | — | (33,426) | |||||||||||||||||||||||||||||||||||||||
| Total debt securities in an unrealized loss position | $ | 321,548 | $ | 352,071 | $ | (11,624) | $ | (30,523) | $ | 349,248 | $ | 382,932 | $ | (10,816) | $ | (33,684) | |||||||||||||||||||||||||||||||
| 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, 2022 | $ | 4,140 | $ | 6,676 | $ | 10,816 | |||||||||||
Additions to the allowance for credit losses on securities for which credit losses were not previously recorded | — | — | — | ||||||||||||||
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 | (221) | — | (221) | ||||||||||||||
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 | (168) | 1,197 | 1,029 | ||||||||||||||
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, 2023 | $ | 3,751 | $ | 7,873 | $ | 11,624 | |||||||||||
| 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, 2023 | $ | 439,357 | $ | 63,496 | |||||||
| December 31, 2022 | 443,680 | 66,775 | |||||||||
| Balance at December 31, 2022 | $ | 41,200 | |||
| Additions | — | ||||
| Accretion | (1,047) | ||||
| Reclassifications from (to) non-accretable difference | 2,653 | ||||
| Disposals | — | ||||
| Balance at June 30, 2023 | $ | 42,806 | |||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
| 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 | $ | 479,193 | $ | 400,206 | 8,914 | 8.7 | % | 3.3 | $ | 452,519 | ||||||||||||||||||||||||||||
Acquired performing loans(B) | 72,427 | 61,083 | 1,992 | 8.4 | % | 3.6 | 72,425 | |||||||||||||||||||||||||||||||
Acquired non-performing loans(C) | 28,168 | 22,862 | 336 | 8.2 | % | 2.8 | 28,602 | |||||||||||||||||||||||||||||||
| Total residential mortgage loans, held-for-sale, at lower of cost or market | $ | 100,595 | $ | 83,945 | 2,328 | 8.3 | % | 3.4 | $ | 101,027 | ||||||||||||||||||||||||||||
Acquired performing loans(B)(D) | $ | 968,911 | $ | 933,849 | 3,414 | 6.5 | % | 10.8 | $ | 890,131 | ||||||||||||||||||||||||||||
Acquired non-performing loans(C)(D) | 237,335 | 216,219 | 1,236 | 4.6 | % | 19.2 | 340,342 | |||||||||||||||||||||||||||||||
| Originated loans | 1,838,139 | 1,858,654 | 6,479 | 6.4 | % | 29.4 | 2,066,798 | |||||||||||||||||||||||||||||||
| Total residential mortgage loans, held-for-sale, at fair value | $ | 3,044,385 | $ | 3,008,722 | 11,129 | 6.3 | % | 22.7 | $ | 3,297,271 | ||||||||||||||||||||||||||||
| Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market | $ | 3,144,980 | $ | 3,092,667 | $ | 3,398,298 | ||||||||||||||||||||||||||||||||
| Percentage of Total Outstanding Unpaid Principal Amount | ||||||||||||||
| State Concentration | June 30, 2023 | December 31, 2022 | ||||||||||||
| Florida | 11.1 | % | 10.9 | % | ||||||||||
| California | 8.7 | % | 10.2 | % | ||||||||||
| Texas | 8.0 | % | 8.9 | % | ||||||||||
| New York | 7.1 | % | 6.8 | % | ||||||||||
| Georgia | 4.3 | % | 4.2 | % | ||||||||||
| Illinois | 3.4 | % | 3.6 | % | ||||||||||
| New Jersey | 3.4 | % | 3.8 | % | ||||||||||
| Indiana | 3.2 | % | 3.2 | % | ||||||||||
| Maryland | 3.1 | % | 3.1 | % | ||||||||||
| Virginia | 3.0 | % | 2.7 | % | ||||||||||
| Other U.S. | 44.7 | % | 42.6 | % | ||||||||||
| 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, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
| Days Past Due | UPB | Carrying Value | Carrying Value Over (Under) UPB | UPB | Carrying Value | Carrying Value Over (Under) UPB | ||||||||||||||||||||||||||||||||
| 90+ | $ | 335,499 | $ | 294,929 | $ | (40,569) | $ | 468,147 | $ | 423,321 | $ | (44,826) | ||||||||||||||||||||||||||
| 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, 2022 | $ | 452,519 | $ | 101,027 | $ | 3,297,271 | $ | 3,850,817 | |||||||||||||||
| Originations | — | — | 16,973,737 | 16,973,737 | |||||||||||||||||||
| Sales | — | (6,946) | (17,324,863) | (17,331,809) | |||||||||||||||||||
| Purchases/additional fundings | 1,269 | — | 115,295 | 116,564 | |||||||||||||||||||
| Proceeds from repayments | (25,563) | (5,932) | (92,628) | (124,123) | |||||||||||||||||||
Transfer of loans to other assets(A) | — | — | 2,528 | 2,528 | |||||||||||||||||||
| Transfer of loans to real estate owned | (3,685) | (2,137) | (1,112) | (6,934) | |||||||||||||||||||
| Transfers of loans to held-for-sale | (30,556) | — | — | (30,556) | |||||||||||||||||||
| Transfer of loans from held-for-investment | — | — | 30,556 | 30,556 | |||||||||||||||||||
| Valuation (provision) reversal on loans | — | (2,067) | — | (2,067) | |||||||||||||||||||
| Fair value adjustments due to: | |||||||||||||||||||||||
| Changes in instrument-specific credit risk | 3,469 | — | 6,317 | 9,786 | |||||||||||||||||||
| Other factors | 2,753 | — | 1,621 | 4,374 | |||||||||||||||||||
Balance at June 30, 2023 | $ | 400,206 | $ | 83,945 | $ | 3,008,722 | $ | 3,492,873 | |||||||||||||||
| 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, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||
| Loans held-for-investment, at fair value | $ | 9,214 | $ | 10,468 | $ | 18,723 | $ | 20,749 | |||||||||||||||
| Loans held-for-sale, at lower of cost or fair value | 1,884 | 2,045 | 3,388 | 3,816 | |||||||||||||||||||
| Loans held-for-sale, at fair value | 41,745 | 56,343 | 79,031 | 126,651 | |||||||||||||||||||
| Total interest income | 52,843 | 68,856 | 101,142 | 151,216 | |||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||
| Loans held-for-investment, at fair value | 4,849 | 3,081 | 9,519 | 6,162 | |||||||||||||||||||
| Loans held-for-sale, at lower of cost or fair value | 982 | 823 | 1,889 | 1,672 | |||||||||||||||||||
| Loans held-for-sale, at fair value | 42,787 | 39,267 | 85,503 | 81,379 | |||||||||||||||||||
| Total interest expense | 48,618 | 43,171 | 96,911 | 89,213 | |||||||||||||||||||
| Net interest income | $ | 4,225 | $ | 25,685 | $ | 4,231 | $ | 62,003 | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Gain (loss) on residential mortgage loans originated and sold, net(A) | $ | (119,821) | $ | (421,834) | $ | (154,135) | $ | (792,255) | |||||||||||||||
Gain (loss) on settlement of residential mortgage loan origination derivative instruments(B) | (11,483) | 526,933 | (1,579) | 1,051,756 | |||||||||||||||||||
MSRs retained on transfer of residential mortgage loans(C) | 202,303 | 329,470 | 342,816 | 790,922 | |||||||||||||||||||
Other(D) | 2,302 | 1,838 | (3,141) | 29,539 | |||||||||||||||||||
| Realized gain on sale of originated residential mortgage loans, net | $ | 73,301 | $ | 436,407 | $ | 183,961 | $ | 1,079,962 | |||||||||||||||
| Change in fair value of residential mortgage loans | 27,891 | 20,038 | 59,489 | (269,959) | |||||||||||||||||||
| Change in fair value of interest rate lock commitments (Note 17) | (19,898) | 77,481 | 6,342 | (50,204) | |||||||||||||||||||
| Change in fair value of derivative instruments (Note 17) | 70,528 | (229,135) | 11,298 | 16,988 | |||||||||||||||||||
| Gain on originated residential mortgage loans, held-for-sale, net | $ | 151,822 | $ | 304,791 | $ | 261,090 | $ | 776,787 | |||||||||||||||
| 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) | ||||||||||||||||||||
| June 30, 2023 | |||||||||||||||||||||||
| SpringCastle | $ | 291,564 | $ | 319,725 | 18.0 | % | 3.5 | ||||||||||||||||
| Marcus | 1,360,425 | 1,282,846 | 10.7 | % | 1.4 | ||||||||||||||||||
| Total consumer loans | $ | 1,651,989 | $ | 1,602,571 | 12.0 | % | 1.7 | ||||||||||||||||
| December 31, 2022 | |||||||||||||||||||||||
| SpringCastle | $ | 330,428 | $ | 363,756 | 17.8 | % | 3.4 | ||||||||||||||||
| Marcus | — | — | — | % | — | ||||||||||||||||||
| Total consumer loans | $ | 330,428 | $ | 363,756 | 17.8 | % | 3.4 | ||||||||||||||||
| June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
| Days Past Due | UPB | Carrying Value(A) | Carrying Value Over (Under) UPB | UPB | Carrying Value(A) | Carrying Value Over (Under) UPB | ||||||||||||||||||||||||||||||||
| SpringCastle | ||||||||||||||||||||||||||||||||||||||
| Current | $ | 286,397 | $ | 314,133 | $ | 27,736 | $ | 325,192 | $ | 358,057 | $ | 32,865 | ||||||||||||||||||||||||||
| 90+ | 5,167 | 5,592 | 425 | 5,236 | 5,699 | 463 | ||||||||||||||||||||||||||||||||
| Total SpringCastle | $ | 291,564 | $ | 319,725 | $ | 28,161 | $ | 330,428 | $ | 363,756 | $ | 33,328 | ||||||||||||||||||||||||||
| Marcus | ||||||||||||||||||||||||||||||||||||||
| Current | $ | 1,360,425 | $ | 1,282,846 | $ | (77,579) | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
| 90+ | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
| Total Marcus | $ | 1,360,425 | $ | 1,282,846 | $ | (77,579) | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
| $ | 1,651,989 | $ | 1,602,571 | $ | (49,418) | $ | 330,428 | $ | 363,756 | $ | 33,328 | |||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| SpringCastle | Marcus | Total | |||||||||||||||
| Balance at December 31, 2022 | $ | 363,756 | $ | — | $ | 363,756 | |||||||||||
| Purchases | — | 1,317,347 | 1,317,347 | ||||||||||||||
Additional fundings(A) | 13,493 | — | 13,493 | ||||||||||||||
| Proceeds from repayments | (52,494) | (37,290) | (89,784) | ||||||||||||||
| Accretion of loan discount and premium amortization, net | 4,954 | 2,789 | 7,743 | ||||||||||||||
| Fair value adjustment due to: | |||||||||||||||||
| Changes in instrument-specific credit risk | 1,964 | — | 1,964 | ||||||||||||||
| Other factors | (11,948) | — | (11,948) | ||||||||||||||
| Balance at June 30, 2023 | $ | 319,725 | $ | 1,282,846 | $ | 1,602,571 | |||||||||||
| June 30, 2023 | December 31, 2022 | ||||||||||
| Land | $ | 175,093 | $ | 175,607 | |||||||
| Building | 700,372 | 702,427 | |||||||||
| Capital improvements | 129,268 | 118,999 | |||||||||
| Total gross investment in SFR properties | 1,004,733 | 997,033 | |||||||||
| Accumulated depreciation | (39,539) | (25,720) | |||||||||
| Investment in SFR properties, net | $ | 965,194 | $ | 971,313 | |||||||
| SFR Properties Held-for-Investment | SFR Properties Held-for-Sale | Total | ||||||||||||
| Balance at December 31, 2022 | $ | 971,313 | $ | — | $ | 971,313 | ||||||||
| Acquisitions and capital improvements | 11,975 | — | 11,975 | |||||||||||
| Reclassifications to SFR properties | (9,747) | 9,747 | — | |||||||||||
| Dispositions | (250) | (3,970) | (4,220) | |||||||||||
| Accumulated depreciation | (13,814) | (60) | (13,874) | |||||||||||
| Balance at June 30, 2023 | $ | 959,477 | $ | 5,717 | $ | 965,194 | ||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Remainder of 2023 | $ | 63,225 | ||||||
| 2024 and thereafter | 22,783 | |||||||
| Total | $ | 86,008 | ||||||
| SFR Properties Held-for-Investment | SFR Properties Held-for-Sale | Total | ||||||||||||
| Balance at December 31, 2022 | 3,731 | — | 3,731 | |||||||||||
| Acquisition of SFR units | 5 | — | 5 | |||||||||||
| Transfer to held-for-sale | (30) | 30 | — | |||||||||||
| Disposition of SFR units | (1) | (11) | (12) | |||||||||||
| Balance at June 30, 2023 | 3,705 | 19 | 3,724 | |||||||||||
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 | $ | 898,824 | 46.3 | % | 460 | 40.5 | % | 9.2 | % | 15.4 | 76.0% / 64.0% | |||||||||||||||||||||||||||||||||
| Bridge | 835,005 | 43.1 | % | 469 | 41.4 | % | 9.0 | % | 24.8 | 71.1% | ||||||||||||||||||||||||||||||||||
| Renovation | 205,670 | 10.6 | % | 205 | 18.1 | % | 9.6 | % | 14.3 | 78.0% / 64.9% | ||||||||||||||||||||||||||||||||||
| $ | 1,939,499 | 100.0 | % | 1,134 | 100.0 | % | 9.2 | % | 19.3 | N/A | ||||||||||||||||||||||||||||||||||
| Balance at December 31, 2022 | $ | 2,064,028 | ||||||
| Initial loan advances | 623,008 | |||||||
| Construction holdbacks and draws | 317,754 | |||||||
| Paydowns and payoffs | (1,065,291) | |||||||
| Balance at June 30, 2023 | $ | 1,939,499 | ||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
| Days Past Due | UPB | Carrying Value | Carrying Value Over (Under) UPB | UPB | Carrying Value | Carrying Value Over (Under) UPB | ||||||||||||||||||||||||||||||||
| Current | $ | 1,922,424 | $ | 1,922,424 | $ | — | $ | 2,064,028 | $ | 2,064,028 | $ | — | ||||||||||||||||||||||||||
| 90+ | 17,074 | 17,074 | — | — | — | — | ||||||||||||||||||||||||||||||||
| State Concentration | Percentage of Total Loan Commitment | |||||||
| California | 52.5 | % | ||||||
| Washington | 8.9 | % | ||||||
| New York | 7.1 | % | ||||||
| Colorado | 6.9 | % | ||||||
| Florida | 5.3 | % | ||||||
| Arizona | 4.6 | % | ||||||
| Illinois | 2.5 | % | ||||||
| North Carolina | 2.2 | % | ||||||
| Texas | 1.8 | % | ||||||
| New Jersey | 1.7 | % | ||||||
| Other U.S. | 6.5 | % | ||||||
| 100.0 | % | |||||||
| June 30, 2023 | December 31, 2022 | ||||||||||
Cash and cash equivalents | $ | 1,369,025 | $ | 1,336,508 | |||||||
| Restricted cash | 319,765 | 281,126 | |||||||||
Total cash, cash equivalents and restricted cash | $ | 1,688,790 | $ | 1,617,634 | |||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2023 | December 31, 2022 | ||||||||||
| MSRs and servicer advances | $ | 71,069 | $ | 69,347 | |||||||
| Real estate and other securities | 4,154 | 4,604 | |||||||||
| Consumer loans | 21,454 | 15,930 | |||||||||
| SFR properties | 11,849 | 4,627 | |||||||||
| Origination and servicing | 167,327 | 161,249 | |||||||||
| Mortgage loans receivable | 43,912 | 25,369 | |||||||||
| Total restricted cash | $ | 319,765 | $ | 281,126 | |||||||
| Other Assets | Accrued Expenses and Other Liabilities | ||||||||||||||||||||||||||||
| June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||
Margin receivable, net(A) | $ | 209,099 | $ | 20,614 | Margin payable | $ | 25,157 | $ | 4,852 | ||||||||||||||||||||
| Excess MSRs, at fair value (Note 4) | 291,402 | 321,803 | Interest payable | 124,041 | 87,700 | ||||||||||||||||||||||||
| Servicer advance investments, at fair value (Note 6) | 385,927 | 398,820 | Accounts payable | 189,813 | 155,492 | ||||||||||||||||||||||||
| Servicing fee receivables | 118,496 | 128,438 | Derivative liabilities (Note 17) | 9,372 | 18,064 | ||||||||||||||||||||||||
| Principal and interest receivable | 147,859 | 106,608 | Accrued compensation and benefits | 97,400 | 112,762 | ||||||||||||||||||||||||
Equity investments(B) | 55,943 | 71,388 | Operating lease liabilities (Note 16) | 107,501 | 101,225 | ||||||||||||||||||||||||
| Other receivables | 126,663 | 146,131 | Deferred tax liability | 751,481 | 711,855 | ||||||||||||||||||||||||
| REO | 17,975 | 19,379 | Other liabilities | 309,981 | 294,717 | ||||||||||||||||||||||||
Goodwill (Note 15)(C) | 85,199 | 85,199 | $ | 1,614,746 | $ | 1,486,667 | |||||||||||||||||||||||
Notes receivable, at fair value(E) | 33,250 | — | |||||||||||||||||||||||||||
| Warrants, at fair value | 19,124 | 19,346 | |||||||||||||||||||||||||||
| Property and equipment | 28,066 | 37,883 | |||||||||||||||||||||||||||
| Intangible assets (Note 15) | 131,049 | 141,413 | |||||||||||||||||||||||||||
| Prepaid expenses | 44,578 | 60,817 | |||||||||||||||||||||||||||
| Operating lease right-of-use assets (Note 16) | 82,804 | 77,329 | |||||||||||||||||||||||||||
| Derivative assets (Note 17) | 55,894 | 52,229 | |||||||||||||||||||||||||||
Loans receivable, at fair value(D) | 28,942 | 94,401 | |||||||||||||||||||||||||||
| Other assets | 173,311 | 132,809 | |||||||||||||||||||||||||||
| $ | 2,035,581 | $ | 1,914,607 | ||||||||||||||||||||||||||
| 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, 2022 | $ | 19,379 | |||
| Purchases | — | ||||
| Property received in satisfaction of loan | 14,662 | ||||
Sales(A) | (16,027) | ||||
| Valuation (provision) reversal | (38) | ||||
| Balance at June 30, 2023 | $ | 17,976 | |||
| Notes Receivable | Loans Receivable | Total | |||||||||||||||
Balance at December 31, 2022 | $ | — | $ | 94,401 | $ | 94,401 | |||||||||||
| Fundings | 33,250 | — | 33,250 | ||||||||||||||
| Payment in Kind | — | 3,255 | 3,255 | ||||||||||||||
| Proceeds from repayments | — | (68,945) | (68,945) | ||||||||||||||
| Fair value adjustments due to: | |||||||||||||||||
| Changes in instrument-specific credit risk | — | — | — | ||||||||||||||
| Other factors | — | 231 | 231 | ||||||||||||||
Balance at June 30, 2023 | $ | 33,250 | $ | 28,942 | $ | 62,192 | |||||||||||
| June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
| Days Past Due | UPB | Carrying Value(A) | Carrying Value Over (Under) UPB | UPB | Carrying Value(A) | Carrying Value Over (Under) UPB | ||||||||||||||||||||||||||||||||
| Current | $ | 130,214 | $ | 62,192 | $ | (68,022) | $ | 157,745 | $ | 94,401 | $ | (63,344) | ||||||||||||||||||||||||||
| 90+ | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
| 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, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Legal and professional | $ | 21,385 | $ | 20,822 | $ | 34,140 | $ | 49,408 | |||||||||||||||
| Loan origination | 12,323 | 35,015 | 24,080 | 74,916 | |||||||||||||||||||
| Occupancy | 16,382 | 28,886 | 34,748 | 58,663 | |||||||||||||||||||
| Subservicing | 40,625 | 41,987 | 75,881 | 88,795 | |||||||||||||||||||
| Loan servicing | 2,520 | 4,866 | 5,496 | 10,170 | |||||||||||||||||||
| Property and maintenance | 23,935 | 22,108 | 47,970 | 45,711 | |||||||||||||||||||
Other | 64,338 | 71,587 | 126,348 | 143,846 | |||||||||||||||||||
| Total general and administrative expenses | $ | 181,508 | $ | 225,271 | $ | 348,663 | $ | 471,509 | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Real estate and other securities | $ | (122,578) | $ | (497,735) | $ | (38,727) | $ | (1,104,587) | |||||||||||||||
Residential mortgage loans and REO | (10,123) | (43,094) | 7,974 | (131,619) | |||||||||||||||||||
Derivative instruments | 215,952 | 416,393 | 64,946 | 1,038,565 | |||||||||||||||||||
Other(A) | 6,174 | (12,795) | (20,417) | (24,896) | |||||||||||||||||||
| Realized and unrealized gains (losses) on investments, net | $ | 89,425 | $ | (137,231) | $ | 13,776 | $ | (222,537) | |||||||||||||||
| Unrealized gain (loss) on secured notes and bonds payable | $ | 4,549 | $ | 27,957 | $ | 2,049 | $ | 35,151 | |||||||||||||||
| Rental revenue | 17,743 | 12,272 | 35,866 | 20,402 | |||||||||||||||||||
| Property and maintenance revenue | 33,117 | 32,035 | 66,754 | 66,340 | |||||||||||||||||||
| (Provision) reversal for credit losses on securities | (2,035) | (2,174) | (807) | (2,885) | |||||||||||||||||||
| Valuation and credit loss (provision) reversal on loans and real estate owned | (3,777) | (1,614) | (2,202) | (4,643) | |||||||||||||||||||
| Other income (loss) | (33,737) | (9,088) | (55,322) | (2,645) | |||||||||||||||||||
| Other income (loss), net | $ | 15,860 | $ | 59,388 | $ | 46,338 | $ | 111,720 | |||||||||||||||
| Total Other income (loss) | $ | 105,285 | $ | (77,843) | $ | 60,114 | $ | (110,817) | |||||||||||||||
| 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, 2022 | $ | 11,836 | $ | 12,540 | $ | 5,092 | $ | 55,731 | $ | 85,199 | |||||||||||||||||||
| Goodwill acquired | — | — | — | — | — | ||||||||||||||||||||||||
| Accumulated impairment loss | — | — | — | — | — | ||||||||||||||||||||||||
Balance at June 30, 2023 | $ | 11,836 | $ | 12,540 | $ | 5,092 | $ | 55,731 | $ | 85,199 | |||||||||||||||||||
| Estimated Useful Lives (Years) | June 30, 2023 | December 31, 2022 | |||||||||||||||
| Gross Intangible Assets | |||||||||||||||||
| Customer relationships | 3 to 9 | $ | 57,949 | $ | 57,949 | ||||||||||||
| Purchased technology | 3 to 7 | 137,922 | 120,787 | ||||||||||||||
| Trademarks / Trade names | 1 to 5 | 10,259 | 10,259 | ||||||||||||||
| 206,130 | 188,995 | ||||||||||||||||
| Accumulated Amortization | |||||||||||||||||
| Customer relationships | 16,063 | 12,960 | |||||||||||||||
| Purchased technology | 54,765 | 30,959 | |||||||||||||||
| Trademarks / Trade names | 4,253 | 3,663 | |||||||||||||||
| 75,081 | 47,582 | ||||||||||||||||
| Intangible Assets, Net | |||||||||||||||||
| Customer relationships | 41,886 | 44,989 | |||||||||||||||
Purchased technology(A) | 83,157 | 89,828 | |||||||||||||||
Trademarks / Trade names(B) | 6,006 | 6,596 | |||||||||||||||
| $ | 131,049 | $ | 141,413 | ||||||||||||||
| Year Ending | Amortization Expense | |||||||
| July 1 through December 31, 2023 | $ | 14,398 | ||||||
| 2024 | 27,456 | |||||||
| 2025 | 25,776 | |||||||
| 2026 | 17,694 | |||||||
| 2027 and thereafter | 22,484 | |||||||
| $ | 107,808 | |||||||
| 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, 2023 | $ | 14,882 | ||||||
| 2024 | 25,929 | |||||||
| 2025 | 20,707 | |||||||
| 2026 | 13,520 | |||||||
| 2027 | 11,257 | |||||||
| 2028 and thereafter | 37,630 | |||||||
| Total remaining undiscounted lease payments | 123,925 | |||||||
| Less: imputed interest | 16,424 | |||||||
| Total remaining discounted lease payments | $ | 107,501 | ||||||
| June 30, 2023 | December 31, 2022 | ||||||||||
| Weighted-average remaining lease term (years) | 6.3 | 5.7 | |||||||||
| Weighted-average discount rate | 4.4 | % | 4.0 | % | |||||||
| 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, 2023 | December 31, 2022 | |||||||||||||||
| Derivative assets | |||||||||||||||||
Interest rate swaps(A) | Other assets | $ | 1,248 | $ | 449 | ||||||||||||
| Interest rate lock commitments | Other assets | 19,528 | 16,015 | ||||||||||||||
| TBAs | Other assets | 35,118 | 35,765 | ||||||||||||||
| Options on treasury futures | Other assets | — | — | ||||||||||||||
| $ | 55,894 | $ | 52,229 | ||||||||||||||
| Derivative liabilities | |||||||||||||||||
| Interest rate lock commitments | Accrued expenses and other liabilities | $ | 4,400 | $ | 7,229 | ||||||||||||
| TBAs | Accrued expenses and other liabilities | 4,972 | 10,835 | ||||||||||||||
| $ | 9,372 | $ | 18,064 | ||||||||||||||
| June 30, 2023 | December 31, 2022 | ||||||||||
Interest rate swaps(A) | $ | 21,240,000 | $ | 23,085,000 | |||||||
| Interest rate lock commitments | 3,689,864 | 2,647,747 | |||||||||
TBAs, short position(B) | 9,068,000 | 8,473,221 | |||||||||
TBAs, long position(B) | — | 31,500 | |||||||||
| 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, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Servicing revenue, net(A) | |||||||||||||||||||||||
| TBAs | $ | — | $ | — | $ | — | $ | 3,300 | |||||||||||||||
| Treasury futures | — | — | — | (1,746) | |||||||||||||||||||
| Options on treasury futures | — | — | — | 5,635 | |||||||||||||||||||
| — | — | — | 7,189 | ||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net(A) | |||||||||||||||||||||||
| Interest rate lock commitments | (19,898) | 77,481 | 6,342 | (50,204) | |||||||||||||||||||
| TBAs | 71,212 | (229,135) | 13,229 | 16,988 | |||||||||||||||||||
| Interest rate swaps | (684) | — | (1,931) | — | |||||||||||||||||||
| 50,630 | (151,654) | 17,640 | (33,216) | ||||||||||||||||||||
Realized and unrealized gains (losses) on investments, net(B) | |||||||||||||||||||||||
| Interest rate swaps | 215,445 | 241,272 | 71,820 | 679,927 | |||||||||||||||||||
TBAs(C) | 507 | 175,121 | (6,875) | 358,638 | |||||||||||||||||||
| 215,952 | 416,393 | 64,945 | 1,038,565 | ||||||||||||||||||||
| Total gain (loss) | $ | 266,582 | $ | 264,739 | $ | 82,585 | $ | 1,012,538 | |||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Collateral | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations/Collateral(C) | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase Agreements: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warehouse Credit Facilities-Residential Mortgage Loans(F) | $ | 2,446,085 | $ | 2,445,472 | Jul-23 to Jan-25 | 6.6 | % | 0.5 | $ | 2,837,968 | $ | 2,886,669 | $ | 2,792,211 | 17.1 | $ | 2,606,004 | |||||||||||||||||||||||||||||||||||||||||||||
Warehouse Credit Facilities-Mortgage Loans Receivable(E) | 1,108,682 | 1,108,682 | Dec-23 to May-24 | 7.9 | % | 0.3 | 1,328,445 | 1,328,445 | 1,328,445 | 1.0 | 1,220,662 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS or U.S. Treasury Bills(D) | 8,618,426 | 8,618,426 | Jul-23 to Feb-24 | 5.3 | % | 0.3 | 8,899,981 | 8,716,511 | 8,748,656 | 8.0 | 6,821,788 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency RMBS(E) | 584,848 | 584,848 | Jul-23 to Oct-27 | 7.1 | % | 1.0 | 14,020,165 | 900,002 | 920,969 | 5.9 | 609,282 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Secured Financing Agreements | 12,758,041 | 12,757,428 | 5.9 | % | 0.4 | 11,257,736 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Secured Notes and Bonds Payable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excess MSRs(G) | 202,663 | 202,663 | Aug-25 | 3.7 | % | 2.1 | 64,323,647 | 242,967 | 286,573 | 6.1 | 227,596 | |||||||||||||||||||||||||||||||||||||||||||||||||||
MSRs(H) | 4,305,473 | 4,295,903 | Jan-24 to Mar-28 | 6.6 | % | 2.3 | 524,360,256 | 6,473,508 | 8,614,954 | 7.4 | 4,791,543 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advance Investments(I) | 295,215 | 294,398 | Aug-23 to Mar-24 | 7.3 | % | 0.7 | 327,574 | 371,955 | 385,927 | 8.2 | 318,445 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advances(I) | 2,134,039 | 2,133,531 | Aug-23 to Nov-26 | 4.5 | % | 0.6 | 2,526,703 | 2,447,918 | 2,447,918 | 0.7 | 2,361,259 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Mortgage Loans(J) | 650,000 | 650,000 | May-24 | 6.0 | % | 0.9 | 655,807 | 661,185 | 667,699 | 29.0 | 769,988 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Loans(K) | 1,476,880 | 1,441,648 | Jun-28 to Sep 37 | 9.3 | % | 4.7 | 1,651,989 | 1,587,232 | 1,602,571 | 1.8 | 299,498 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| SFR Properties | 827,339 | 784,608 | Mar-26 to Sep-27 | 4.2 | % | 3.8 | N/A | 958,104 | 958,104 | N/A | 817,695 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage Loans Receivable | 524,062 | 512,255 | Jul 26 to Dec-26 | 5.6 | % | 3.3 | 560,721 | 560,721 | 560,721 | 0.6 | 512,919 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Secured Notes and Bonds Payable | 10,415,671 | 10,315,006 | 6.2 | % | 2.3 | 10,098,943 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total/ Weighted Average | $ | 23,173,712 | $ | 23,072,434 | 6.0 | % | 1.2 | $ | 21,356,679 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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, 2022 | $ | 227,596 | $ | 4,791,543 | $ | 2,679,704 | $ | 7,431,070 | $ | 3,371,315 | $ | 299,498 | $ | 822,372 | $ | 1,733,581 | $ | 21,356,679 | |||||||||||||||||||||||||||||||||||
| Secured Financing Agreements | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowings | — | — | — | 26,093,901 | 17,617,548 | — | — | 1,089,172 | 44,800,621 | ||||||||||||||||||||||||||||||||||||||||||||
| Repayments | — | — | — | (24,321,697) | (17,774,811) | — | (4,677) | (1,201,151) | (43,302,336) | ||||||||||||||||||||||||||||||||||||||||||||
Capitalized deferred financing costs, net of amortization | — | — | — | — | 1,408 | — | — | — | 1,408 | ||||||||||||||||||||||||||||||||||||||||||||
| Secured Notes and Bonds Payable | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowings | — | 1,310,004 | 1,262,565 | — | — | 1,185,612 | — | — | 3,758,181 | ||||||||||||||||||||||||||||||||||||||||||||
| Repayments | (24,933) | (1,804,529) | (1,517,240) | — | (116,730) | (39,504) | (35,141) | — | (3,538,077) | ||||||||||||||||||||||||||||||||||||||||||||
Discount on borrowings, net of amortization | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Unrealized gain on notes, fair value | — | — | — | — | (3,258) | 1,872 | — | (665) | (2,051) | ||||||||||||||||||||||||||||||||||||||||||||
Capitalized deferred financing costs, net of amortization | — | (1,115) | 2,900 | — | — | (5,830) | 2,054 | — | (1,991) | ||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2023 | $ | 202,663 | $ | 4,295,903 | $ | 2,427,929 | $ | 9,203,274 | $ | 3,095,472 | $ | 1,441,648 | $ | 784,608 | $ | 1,620,937 | $ | 23,072,434 | |||||||||||||||||||||||||||||||||||
| Year Ending | Nonrecourse(A) | Recourse(B) | Total | |||||||||||||||||
| July 1 through December 31, 2023 | $ | 1,204,448 | $ | 11,089,405 | $ | 12,293,853 | ||||||||||||||
| 2024 | 1,949,664 | 3,387,298 | 5,336,962 | |||||||||||||||||
| 2025 | — | 1,655,367 | 1,655,367 | |||||||||||||||||
| 2026 | — | 1,736,959 | 1,736,959 | |||||||||||||||||
| 2027 | 728,691 | 245,000 | 973,691 | |||||||||||||||||
| 2028 and thereafter | 1,476,880 | 250,000 | 1,726,880 | |||||||||||||||||
| $ | 5,359,683 | $ | 18,364,029 | $ | 23,723,712 | |||||||||||||||
| 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 | $ | 5,398,330 | $ | 2,034,184 | $ | 3,364,146 | ||||||||||||||
| Loan originations | 7,421,000 | 1,520,582 | 5,900,418 | |||||||||||||||||
| Secured Notes and Bonds Payable | ||||||||||||||||||||
| Excess MSRs | 286,380 | 202,662 | 83,718 | |||||||||||||||||
| MSRs | 7,155,473 | 4,305,473 | 2,850,000 | |||||||||||||||||
| Servicer advances | 3,595,000 | 2,429,254 | 1,165,746 | |||||||||||||||||
| Residential mortgage loans | 290,715 | 189,364 | 101,351 | |||||||||||||||||
| $ | 24,146,898 | $ | 10,681,519 | $ | 13,465,379 | |||||||||||||||
| Year | Price | |||||||
| 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) | ||
| Principal Balance or Notional Amount | Carrying Value | Fair Value | |||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
Excess MSRs(A) | $ | 64,323,647 | $ | 291,402 | $ | — | $ | — | $ | 291,402 | $ | 291,402 | |||||||||||||||||||||||
MSRs and MSR financing receivables(A) | 532,392,018 | 8,688,556 | — | — | 8,688,556 | 8,688,556 | |||||||||||||||||||||||||||||
| Servicer advance investments | 327,574 | 385,927 | — | — | 385,927 | 385,927 | |||||||||||||||||||||||||||||
Real estate and other securities(B) | 26,451,879 | 9,701,000 | 979,200 | 7,769,675 | 952,343 | 9,701,218 | |||||||||||||||||||||||||||||
Residential mortgage loans, held-for-sale | 100,595 | 83,945 | — | — | 83,945 | 83,945 | |||||||||||||||||||||||||||||
Residential mortgage loans, held-for-sale, at fair value | 3,044,385 | 3,008,722 | — | 2,871,464 | 137,258 | 3,008,722 | |||||||||||||||||||||||||||||
Residential mortgage loans, held-for-investment, at fair value | 479,193 | 400,206 | — | — | 400,206 | 400,206 | |||||||||||||||||||||||||||||
Residential mortgage loans subject to repurchase | 1,296,097 | 1,296,097 | — | 1,296,097 | — | 1,296,097 | |||||||||||||||||||||||||||||
| Consumer loans | 1,651,989 | 1,602,571 | — | — | 1,602,571 | 1,602,571 | |||||||||||||||||||||||||||||
Mortgage loans receivable(C) | 1,939,499 | 1,939,499 | — | 347,327 | 1,592,172 | 1,939,499 | |||||||||||||||||||||||||||||
| Notes receivable | 101,272 | 33,250 | — | — | 33,250 | 33,250 | |||||||||||||||||||||||||||||
Loans receivable | 28,942 | 28,942 | — | — | 28,942 | 28,942 | |||||||||||||||||||||||||||||
| Cash, cash equivalents and restricted cash | 1,688,790 | 1,688,790 | 1,688,790 | — | — | 1,688,790 | |||||||||||||||||||||||||||||
Other assets(D) | N/A | 21,131 | — | — | 21,131 | 21,131 | |||||||||||||||||||||||||||||
Derivative assets | 32,686,554 | 55,894 | — | 36,366 | 19,528 | 55,894 | |||||||||||||||||||||||||||||
| $ | 29,225,932 | $ | 2,667,990 | $ | 12,320,929 | $ | 14,237,231 | $ | 29,226,150 | ||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Secured financing agreements | $ | 12,758,041 | $ | 12,757,428 | $ | — | $ | 12,757,428 | $ | — | $ | 12,757,428 | |||||||||||||||||||||||
Secured notes and bonds payable(E) | 10,415,671 | 10,315,006 | — | 312,255 | 10,351,768 | 10,664,023 | |||||||||||||||||||||||||||||
Unsecured senior notes, net of issuance costs | 545,930 | 545,930 | — | — | 515,697 | 515,697 | |||||||||||||||||||||||||||||
Residential mortgage loan repurchase liability | 1,296,097 | 1,296,097 | — | 1,296,097 | — | 1,296,097 | |||||||||||||||||||||||||||||
| Derivative liabilities | 1,311,310 | 9,372 | — | 4,972 | 4,400 | 9,372 | |||||||||||||||||||||||||||||
| $ | 24,923,833 | $ | — | $ | 14,370,752 | $ | 10,871,865 | $ | 25,242,617 | ||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Level 3 | Total | |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
| Balance at December 31, 2022 | $ | 321,803 | $ | 8,889,403 | $ | 398,820 | $ | 950,860 | $ | 8,786 | $ | 713,896 | $ | 363,756 | $ | 94,401 | $ | 1,714,053 | $ | 13,455,778 | ||||||||||||
| Transfers | ||||||||||||||||||||||||||||||||
| Transfers from Level 3 | — | — | — | — | — | (41,430) | — | — | (163,902) | (205,332) | ||||||||||||||||||||||
| Transfers to Level 3 | — | — | — | — | — | 20,997 | — | — | — | 20,997 | ||||||||||||||||||||||
| Gain (loss) included in net income | ||||||||||||||||||||||||||||||||
Credit losses on securities(D) | — | — | — | 374 | — | — | — | — | — | 374 | ||||||||||||||||||||||
Servicing revenue, net(E) | ||||||||||||||||||||||||||||||||
Included in servicing revenue(E) | — | (120,272) | — | — | — | — | — | — | — | (120,272) | ||||||||||||||||||||||
| Change in fair value of: | ||||||||||||||||||||||||||||||||
Excess MSRs(D) | (9,863) | — | — | — | — | — | — | — | (9,863) | |||||||||||||||||||||||
| Servicer advance investments | — | — | 7,900 | — | — | — | — | — | — | 7,900 | ||||||||||||||||||||||
| Residential mortgage loans | — | — | — | — | — | 4,448 | — | — | — | 4,448 | ||||||||||||||||||||||
| Consumer loans | — | — | — | — | — | — | (9,984) | — | — | (9,984) | ||||||||||||||||||||||
Other income (loss), net(D) | — | — | — | 19,017 | 6,342 | 40,791 | — | 231 | — | 66,381 | ||||||||||||||||||||||
Gains (losses) included in OCI(F) | — | — | — | 2,327 | — | — | — | — | — | 2,327 | ||||||||||||||||||||||
| Interest income | 9,391 | — | 9,471 | 14,843 | — | — | 7,743 | 3,255 | — | 44,703 | ||||||||||||||||||||||
| Purchases, sales and repayments | ||||||||||||||||||||||||||||||||
Purchases, net(G) | — | — | 445,470 | 32,600 | — | 36,578 | 1,317,347 | 33,250 | — | 1,865,245 | ||||||||||||||||||||||
| Proceeds from sales | (703) | (423,391) | — | — | — | (233,170) | 13,493 | — | — | (643,771) | ||||||||||||||||||||||
| Proceeds from repayments | (29,226) | — | (475,734) | (67,678) | — | (49,863) | (89,784) | (68,945) | (898,741) | (1,679,971) | ||||||||||||||||||||||
| Originations and other | — | 342,816 | — | — | — | 45,217 | — | — | 940,762 | 1,328,795 | ||||||||||||||||||||||
| Balance at June 30, 2023 | $ | 291,402 | $ | 8,688,556 | $ | 385,927 | $ | 952,343 | $ | 15,128 | $ | 537,464 | $ | 1,602,571 | $ | 62,192 | $ | 1,592,172 | $ | 14,127,755 | ||||||||||||
| Level 3 | |||||
| Asset-Backed Securities Issued | |||||
| Balance at December 31, 2022 | $ | 319,486 | |||
| Gains (losses) included in net income | |||||
Other income(A) | (1,386) | ||||
| Purchases, sales and repayments | |||||
| Proceeds from sales | — | ||||
| Payments | (56,234) | ||||
| Balance at June 30, 2023 | $ | 261,866 | |||
| 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 | 2.9% – 12.2% (6.6%) | 0.3% – 9.0% (4.6%) | 0.0% – 90.5% (55.7%) | 7 – 59 (20) | 11 – 28 (21) | |||||||||||||||||||||||||||
| Excess MSRs Held through Investees | 7.4% – 10.4% (8.7%) | 2.6% – 5.8% (3.8%) | 45.0% – 63.9% (58.7%) | 16 – 25 (20) | 15 – 22 (18) | |||||||||||||||||||||||||||
MSRs and MSR Financing Receivables(G) | ||||||||||||||||||||||||||||||||
| Agency | 0.3% – 99.5% (10.4%) | 0.0% – 66.7% (1.8%) | —(H) | 7 – 125 (28) | 0 – 40 (23) | |||||||||||||||||||||||||||
| Non-Agency | 0.5% – 84.4% (13.0%) | 0.7% – 80.0% (21.2%) | —(H) | 1 – 214 (46) | 0 – 40 (24) | |||||||||||||||||||||||||||
| Ginnie Mae | 0.4% – 82.5% (10.3%) | 0.2% – 80.0% (7.7%) | —(H) | 18 – 73 (42) | 0 – 39 (27) | |||||||||||||||||||||||||||
Total/Weighted Average—MSRs and MSR Financing Receivables | 0.3% – 99.5% (10.6%) | 0.0% – 80.0% (5.0%) | —(H) | 1 – 214 (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, 2023 | 1.2% – 2.1% (2.1%) | 3.3% – 4.6% (4.6%) | 2.9% – 20.6% (20.3%) | 18.1 – 19.9 (19.8) | bps | 5.7% – 6.2% (5.7%) | 21.7 – 22.1 (22.1) | ||||||||||||||||||||||||||||
| Fair Value | ||||||||||||||||||||||||||||||||||||||
| Asset Type | Outstanding Face Amount | Amortized Cost Basis | Multiple Quotes(A) | Single Quote(B) | Total | Level | ||||||||||||||||||||||||||||||||
| Agency RMBS | $ | 7,899,981 | $ | 7,737,530 | $ | 7,769,675 | $ | — | $ | 7,769,675 | 2 | |||||||||||||||||||||||||||
Non-Agency RMBS(C) | 17,551,898 | 927,258 | 910,356 | 41,987 | 952,343 | 3 | ||||||||||||||||||||||||||||||||
| Total | $ | 25,451,879 | $ | 8,664,788 | $ | 8,680,031 | $ | 41,987 | $ | 8,722,018 | ||||||||||||||||||||||||||||
| 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 | $ | 494,700 | 5.3% – 12.6% (7.0%) | 0.2% – 17.3% (7.0%) | 0.0% – 2.7% (0.4%) | 0.0% – 75.0% (16.9%) | ||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Performing Loans | Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | |||||||||||||||||||||||||||
| Acquired loans | $ | 43,312 | 6.0% – 8.7% (8.0%) | 3.0% – 5.3% (4.0%) | 1.5% – 12.0% (4.2%) | 12.5% – 70.4% (20.4%) | ||||||||||||||||||||||||||
| Originated loans | 62,648 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
| Residential mortgage loans held-for-sale, at fair value | $ | 105,960 | ||||||||||||||||||||||||||||||
| Non-Performing Loans | Fair Value | Discount Rate | Annual change in home prices | Liquidation Timeline (in years) | Current Value of Underlying Properties | |||||||||||||||||||||||||||
| Acquired | $ | 21,469 | 8.6% – 9.1% (9.0%) | 11.0%– 38.0% (33.0%) | 2.2 – 3.4 (2.5) | 220.5% – 778.2% (278.3%) | ||||||||||||||||||||||||||
| Originated | 9,829 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
| Residential mortgage loans held-for-sale, at fair value | $ | 31,298 | ||||||||||||||||||||||||||||||
| Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | ||||||||||||||||||||||||||||
| Residential mortgage loans held-for-investment, at fair value | $ | 400,206 | 8.7% – 8.7% (8.7%) | 3.2% – 5.3% (4.4%) | 5.7% – 15.2% (8.3%) | 22.1% – 47.6% (35.5%) | ||||||||||||||||||||||||||
| Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | ||||||||||||||||||||||||||||
| SpringCastle | $ | 319,725 | 8.4% – 9.4% (8.7%) | 8.0% – 32.5% (26.5%) | 0.0% – 6.9% (4.2%) | 58.7% – 58.7% (58.7%) | ||||||||||||||||||||||||||
| Marcus | 1,282,846 | 10.7% | 19.7% | 5.2% | 7.4% | |||||||||||||||||||||||||||
| Consumer loans, held-for-investment, at fair value | $ | 1,602,571 | ||||||||||||||||||||||||||||||
| 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 | $ | 15,128 | 0.7% – 100.0% (84.8%) | 7.7 – 345.0 (226.3) | ||||||||||||||||
| Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | ||||||||||||||||||||||||||||
| Asset-backed securities issued | $ | 261,866 | 6.5% | 19.1% | 4.6% | 94.0% | ||||||||||||||||||||||||||
| 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 | $ | 61,083 | 5.3% – 8.7% (8.4%) | 3.5 – 4.6 (3.6) | 3.6% – 5.3% (5.1%) | 5.7% – 12.0% (6.2%) | 22.1% – 70.4% (23.4%) | |||||||||||||||||||||||||||||||
| Non-performing loans | 22,862 | 6.6% – 9.1% (8.2%) | 2.2 – 3.4 (2.8) | 2.1% – 3.2% (2.9%) | 15.2% – 30.3% (21.9%) | 35.0% – 52.8% (43.3%) | ||||||||||||||||||||||||||||||||
| Total/weighted average | $ | 83,945 | 8.4% | 3.4 | 4.5% | 10.5% | 28.8% | |||||||||||||||||||||||||||||||
| 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) | ||
| Advance Purchaser | Newrez Joint Ventures | Residential Mortgage Loans | Consumer Loan SPVs | Mortgage Loans Receivable | Total | ||||||||||||||||||
| June 30, 2023 | |||||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Servicer advance investments, at fair value | $ | 376,980 | $ | — | $ | — | $ | — | $ | — | $ | 376,980 | |||||||||||
| Residential mortgage loans, held-for-sale, at fair value | — | — | 663,755 | — | — | 663,755 | |||||||||||||||||
| Consumer loans | — | — | — | 319,725 | — | 319,725 | |||||||||||||||||
| Mortgage loans receivable | — | — | — | — | 347,327 | 347,327 | |||||||||||||||||
| Cash and cash equivalents | 15,915 | 26,525 | 5,112 | — | — | 47,552 | |||||||||||||||||
| Restricted cash | 8,432 | — | 6,515 | 6,458 | 12,924 | 34,329 | |||||||||||||||||
| Other assets | 9 | 582 | — | 4,717 | — | 5,308 | |||||||||||||||||
| Total Assets | 401,336 | 27,107 | 675,382 | 330,899 | 360,251 | 1,794,976 | |||||||||||||||||
| Liabilities | |||||||||||||||||||||||
Secured notes and bonds payable(A) | 289,950 | — | 649,357 | 261,866 | 312,255 | 1,513,428 | |||||||||||||||||
| Accrued expenses and other liabilities | 2,662 | 6,949 | 37 | 1,295 | 2,424 | 13,367 | |||||||||||||||||
| Total Liabilities | $ | 292,612 | $ | 6,949 | $ | 649,394 | $ | 263,161 | $ | 314,679 | $ | 1,526,795 | |||||||||||
| December 31, 2022 | |||||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Servicer advance investments, at fair value | $ | 387,675 | $ | — | $ | — | $ | — | $ | — | $ | 387,675 | |||||||||||
| Residential mortgage loans, held-for-investment, at fair value | — | — | 22,699 | — | — | 22,699 | |||||||||||||||||
| Residential mortgage loans, held-for-sale, at fair value | — | — | 844,000 | — | — | 844,000 | |||||||||||||||||
| Mortgage loans receivable | — | — | — | — | 349,975 | 349,975 | |||||||||||||||||
| Consumer loans | — | — | — | 363,756 | — | 363,756 | |||||||||||||||||
| Cash and cash equivalents | 34,084 | 28,404 | 23,473 | — | — | 85,961 | |||||||||||||||||
| Restricted cash | 7,433 | — | 7,547 | 6,652 | 9,368 | 31,000 | |||||||||||||||||
| Other assets | 9 | 1,026 | 165,975 | 5,253 | (238) | 172,025 | |||||||||||||||||
| Total Assets | 429,201 | 29,430 | 1,063,694 | 375,661 | 359,105 | 2,257,091 | |||||||||||||||||
| Liabilities | |||||||||||||||||||||||
Secured financing agreements(A) | — | — | 51,325 | — | — | 51,325 | |||||||||||||||||
Secured notes and bonds payable(A) | 313,093 | — | 768,959 | 299,498 | 312,918 | 1,694,468 | |||||||||||||||||
| Accrued expenses and other liabilities | 1,928 | 4,306 | 25,381 | 1,144 | 349 | 33,108 | |||||||||||||||||
| Total Liabilities | $ | 315,021 | $ | 4,306 | $ | 845,665 | $ | 300,642 | $ | 313,267 | $ | 1,778,901 | |||||||||||
| 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, | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| Residential mortgage loan UPB and other collateral | $ | 11,388,241 | $ | 11,481,471 | ||||||||||
Weighted average delinquency(A) | 4.1 | % | 3.4 | % | ||||||||||
| Net credit losses | $ | 143,390 | $ | 129,047 | ||||||||||
Face amount of debt held by third parties(B) | $ | 10,402,410 | $ | 10,584,528 | ||||||||||
Carrying value of bonds retained by Rithm Capital(C)(D) | $ | 916,907 | $ | 905,695 | ||||||||||
| Cash flows received by Rithm Capital on these bonds | $ | 78,324 | $ | 124,942 | ||||||||||
| June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Advance Purchaser(A) | Newrez Joint Ventures | Consumer Loan Companies | Advance Purchaser(A) | Newrez Joint Ventures | Consumer Loan Companies | ||||||||||||||||||||||||||||||
| Total consolidated equity | $ | 108,737 | $ | 20,158 | $ | 82,926 | $ | 114,180 | $ | 25,124 | $ | 91,263 | |||||||||||||||||||||||
| Others’ ownership interest | 10.7 | % | 49.5 | % | 46.5 | % | 10.7 | % | 49.5 | % | 46.5 | % | |||||||||||||||||||||||
| Others’ interest in equity of consolidated subsidiary | $ | 11,612 | $ | 9,978 | $ | 38,661 | $ | 12,193 | $ | 12,437 | $ | 42,437 | |||||||||||||||||||||||
| Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||||||||
Advance Purchaser(A) | Newrez Joint Ventures | Consumer Loan Companies | Advance Purchaser(A) | Newrez Joint Ventures | Consumer Loan Companies | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | 7,927 | $ | 781 | $ | 12,168 | $ | 380 | $ | 2,597 | $ | 27,642 | |||||||||||||||||||||||
| Others’ ownership interest | 10.7 | % | 49.5 | % | 46.5 | % | 10.7 | % | 49.5 | % | 46.5 | % | |||||||||||||||||||||||
| Others’ interest in net income (loss) of consolidated subsidiary | $ | 845 | $ | 386 | $ | 5,658 | $ | 41 | $ | 1,287 | $ | 12,854 | |||||||||||||||||||||||
| 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, | |||||||||||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||||||||
Advance Purchaser(A) | Newrez Joint Ventures | Consumer Loan Companies | Advance Purchaser(A) | Newrez Joint Ventures | Consumer Loan Companies | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | 6,557 | $ | 695 | $ | 9,776 | $ | 2,515 | $ | 3,419 | $ | 38,340 | |||||||||||||||||||||||
| Others’ ownership interest | 10.7 | % | 49.5 | % | 46.5 | % | 10.7 | % | 49.5 | % | 46.5 | % | |||||||||||||||||||||||
| Others’ interest in net income (loss) of consolidated subsidiary | $ | 699 | $ | 344 | $ | 4,546 | $ | 269 | $ | 1,694 | $ | 17,828 | |||||||||||||||||||||||
| Dividends Declared per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of Shares | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Series | June 30, 2023 | December 31, 2022 | Liquidation Preference(A) | Issuance Discount | Carrying Value(B) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Series A, 7.50% issued July 2019(C) | 6,200 | 6,200 | $ | 155,002 | 3.15 | % | $ | 149,822 | $ | 0.47 | $ | 0.47 | $ | 0.94 | $ | 0.94 | ||||||||||||||||||||||||||||||||||||||||
Series B, 7.125% issued August 2019(C) | 11,261 | 11,261 | 281,518 | 3.15 | % | 272,654 | 0.45 | 0.45 | 0.89 | 0.89 | ||||||||||||||||||||||||||||||||||||||||||||||
Series C, 6.375% issued February 2020(C) | 15,903 | 15,903 | 397,584 | 3.15 | % | 385,289 | 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 | 0.44 | 0.88 | 0.88 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total | 51,964 | 51,964 | $ | 1,299,104 | $ | 1,257,254 | $ | 1.76 | $ | 1.76 | $ | 3.51 | $ | 3.51 | ||||||||||||||||||||||||||||||||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Declaration Date | Payment Date | Per Share | Total Amounts Distributed (millions) | |||||||||||||||||
| Quarterly Dividend | ||||||||||||||||||||
| March 21, 2022 | April 2022 | $ | 0.25 | $ | 116.7 | |||||||||||||||
| June 17, 2022 | July 2022 | 0.25 | 116.7 | |||||||||||||||||
| September 22, 2022 | October 2022 | 0.25 | 118.4 | |||||||||||||||||
| December 15, 2022 | January 2023 | 0.25 | 118.6 | |||||||||||||||||
| March 17, 2023 | April 2023 | 0.25 | 120.8 | |||||||||||||||||
| June 23, 2023 | July 2023 | 0.25 | 120.8 | |||||||||||||||||
| Number of Warrants (in millions) | Adjusted Weighted Average Exercise Price (per share) | ||||||||||||||||
| Initial | Adjusted(A) | ||||||||||||||||
December 31, 2022 | 22.4 | 25.6 | $ | 6.1 | |||||||||||||
| Granted | — | — | — | ||||||||||||||
| Exercised | (22.4) | (25.6) | 6.1 | ||||||||||||||
| Expired | — | — | — | ||||||||||||||
June 30, 2023 | — | — | |||||||||||||||
| Held by Former Manager | 21,471,990 | ||||
| Issued to the independent directors | 2,000 | ||||
| Total | 21,473,990 | ||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Recipient | Date of Grant/ Exercise(A) | Number of Unexercised Options | Options Exercisable as of June 30, 2023 | Weighted Average Exercise Price(B) | Intrinsic Value of Exercisable Options as of June 30, 2023 (millions) | ||||||||||||||||||||||||
| Directors | Various | 2,000 | 2,000 | $ | 10.70 | $ | — | ||||||||||||||||||||||
| Former Manager | 2017 | 1,130,916 | 1,130,916 | 12.84 | — | ||||||||||||||||||||||||
| Former Manager | 2018 | 5,320,000 | 5,320,000 | 15.57 | — | ||||||||||||||||||||||||
| Former Manager | 2019 | 6,351,000 | 6,351,000 | 14.95 | — | ||||||||||||||||||||||||
| Former Manager | 2020 | 1,619,739 | 1,619,739 | 16.30 | — | ||||||||||||||||||||||||
| Former Manager | 2021 | 7,050,335 | 5,796,129 | 9.34 | 0.03 | ||||||||||||||||||||||||
| Outstanding | 21,473,990 | 20,219,784 | |||||||||||||||||||||||||||
| Number of Options | Weighted Average Exercise Price | |||||||||||||
December 31, 2022 | 21,476,990 | $ | — | |||||||||||
| Granted | — | — | ||||||||||||
| Exercised | — | — | ||||||||||||
| Expired | (3,000) | 14.24 | ||||||||||||
June 30, 2023 | 21,473,990 | See table above | ||||||||||||
| RITHM CAPITAL CORP. AND SUBSIDIARIES | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
| (dollars in tables in thousands, except share and per share data) | ||
| Number of Shares | Grant Date Price | |||||||||||||||||||||||||||||||||||||||||||
| RSAs | RSUs | PSUs | Total | RSAs | RSUs | PSUs | ||||||||||||||||||||||||||||||||||||||
Unvested Shares at December 31, 2022 | 578,034 | — | — | 578,034 | $ | 8.65 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
| Granted | — | 1,215,329 | 2,430,658 | 3,645,987 | — | 9.52 | 9.52 | |||||||||||||||||||||||||||||||||||||
Accrued RSU and PSU dividend equivalents(A) | — | 75,151 | 150,302 | 225,453 | — | 9.52 | 9.52 | |||||||||||||||||||||||||||||||||||||
| Vested | (192,678) | — | — | (192,678) | 8.65 | — | — | |||||||||||||||||||||||||||||||||||||
| Forfeited | — | (13,532) | (27,064) | (40,596) | — | 9.52 | 9.52 | |||||||||||||||||||||||||||||||||||||
Unvested Shares at June 30, 2023(A) | 385,356 | 1,276,948 | 2,553,896 | 4,216,200 | ||||||||||||||||||||||||||||||||||||||||
| 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, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Net income | $ | 386,685 | $ | 33,331 | $ | 476,634 | $ | 723,262 | |||||||||||||||
Noncontrolling interests in income of consolidated subsidiaries | 6,889 | 14,182 | 5,589 | 19,791 | |||||||||||||||||||
| Dividends on preferred stock | 22,395 | 22,427 | 44,790 | 44,888 | |||||||||||||||||||
| Net income attributable to common stockholders | $ | 357,401 | $ | (3,278) | $ | 426,255 | $ | 658,583 | |||||||||||||||
| Basic weighted average shares of common stock outstanding | 483,091,792 | 466,804,548 | 480,642,680 | 466,795,119 | |||||||||||||||||||
Dilutive effect of stock options, restricted stock, common stock purchase warrants, RSUs and PSUs(A)(B) | 285,169 | — | 2,470,720 | 17,698,989 | |||||||||||||||||||
| Diluted weighted average shares of common stock outstanding | 483,376,961 | 466,804,548 | 483,113,400 | 484,494,108 | |||||||||||||||||||
| Basic earnings per share attributable to common stockholders | $ | 0.74 | $ | (0.01) | $ | 0.89 | $ | 1.41 | |||||||||||||||
| Diluted earnings per share attributable to common stockholders | $ | 0.74 | $ | (0.01) | $ | 0.88 | $ | 1.36 | |||||||||||||||
| 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) | ||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Current: | |||||||||||||||||||||||
| Federal | $ | — | $ | (1,199) | $ | 16 | $ | — | |||||||||||||||
| State and local | 99 | (222) | 122 | 45 | |||||||||||||||||||
| Total current income tax expense (benefit) | 99 | (1,421) | 138 | 45 | |||||||||||||||||||
| Deferred: | |||||||||||||||||||||||
| Federal | 48,232 | 62,330 | 34,064 | 231,566 | |||||||||||||||||||
| State and local | 8,199 | 11,781 | 5,522 | 43,868 | |||||||||||||||||||
| Total deferred income tax expense | 56,431 | 74,111 | 39,586 | 275,434 | |||||||||||||||||||
| Total income tax expense (benefit) | $ | 56,530 | $ | 72,690 | $ | 39,724 | $ | 275,479 | |||||||||||||||
| $ in thousands except per share amounts | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | ||||||||||||||||||||||||
| Total equity | $ | 7,194,684 | $ | 6,954,543 | $ | 7,010,068 | $ | 7,061,626 | $ | 7,062,998 | |||||||||||||||||||
| Less: Preferred Stock Series A, B, C and D | 1,257,254 | 1,257,254 | 1,257,254 | 1,258,667 | 1,258,667 | ||||||||||||||||||||||||
| Less: Noncontrolling interests of consolidated subsidiaries | 60,251 | 60,337 | 67,067 | 71,055 | 69,171 | ||||||||||||||||||||||||
| Total equity attributable to common stock | $ | 5,877,179 | $ | 5,636,952 | $ | 5,685,747 | $ | 5,731,904 | $ | 5,735,160 | |||||||||||||||||||
| Common stock outstanding | 483,320,606 | 483,017,747 | 473,715,100 | 473,715,100 | 466,856,753 | ||||||||||||||||||||||||
| Book value per common share | $ | 12.16 | $ | 11.67 | $ | 12.00 | $ | 12.10 | $ | 12.28 | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
June 30, 2023(A) | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||
| Real GDP | 2.4 | % | 2.0 | % | 2.6 | % | 3.2 | % | (0.6) | % | |||||||||||||||||||
| June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||
| Unemployment rate | 3.6 | % | 3.5 | % | 3.5 | % | 3.5 | % | 3.6 | % | |||||||||||||||||||
| June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||
| 10-year U.S. Treasury rate | 3.8 | % | 3.5 | % | 3.9 | % | 3.8 | % | 3.0 | % | |||||||||||||||||||
| 30-year fixed mortgage rate | 6.7 | % | 6.3 | % | 6.4 | % | 6.7 | % | 5.7 | % | |||||||||||||||||||
| 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, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments | $ | 1,824,653 | $ | 7,014,766 | $ | 1,962,023 | $ | 10,801,442 | $ | 9,701,000 | $ | 2,345,181 | $ | 1,602,571 | $ | 1,939,499 | $ | — | $ | 26,389,693 | ||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 223,222 | 513,195 | 298,632 | 1,035,049 | 268,083 | 546 | 1,000 | 49,375 | 14,972 | 1,369,025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restricted cash | 41,621 | 125,706 | 71,069 | 238,396 | 4,154 | 11,849 | 21,454 | 43,912 | — | 319,765 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 159,964 | 2,371,343 | 2,526,478 | 5,057,785 | 230,001 | 100,699 | 79,106 | 119,642 | 107,164 | 5,694,397 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | 11,836 | 12,540 | 5,092 | 29,468 | — | — | — | 55,731 | — | 85,199 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 2,261,296 | $ | 10,037,550 | $ | 4,863,294 | $ | 17,162,140 | $ | 10,203,238 | $ | 2,458,275 | $ | 1,704,131 | $ | 2,208,159 | $ | 122,136 | $ | 33,858,079 | ||||||||||||||||||||||||||||||||||||||||||
| Debt | $ | 1,741,717 | $ | 4,255,588 | $ | 2,886,131 | $ | 8,883,436 | $ | 9,203,274 | $ | 1,923,139 | $ | 1,441,648 | $ | 1,620,937 | $ | 545,930 | $ | 23,618,364 | ||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 204,083 | 2,202,768 | 50,832 | 2,457,683 | 73,121 | 320,311 | 3,888 | 15,890 | 174,138 | 3,045,031 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 1,945,800 | 6,458,356 | 2,936,963 | 11,341,119 | 9,276,395 | 2,243,450 | 1,445,536 | 1,636,827 | 720,068 | 26,663,395 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total equity | 315,496 | 3,579,194 | 1,926,331 | 5,821,021 | 926,843 | 214,825 | 258,595 | 571,332 | (597,932) | 7,194,684 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests in equity of consolidated subsidiaries | 9,978 | — | 11,612 | 21,590 | — | — | 38,661 | — | — | 60,251 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Rithm Capital stockholders’ equity | $ | 305,518 | $ | 3,579,194 | $ | 1,914,719 | $ | 5,799,431 | $ | 926,843 | $ | 214,825 | $ | 219,934 | $ | 571,332 | $ | (597,932) | $ | 7,134,433 | ||||||||||||||||||||||||||||||||||||||||||
| Investments in equity method investees | $ | — | $ | — | $ | 66,770 | $ | 66,770 | $ | — | $ | — | $ | — | $ | — | $ | 22,620 | $ | 89,390 | ||||||||||||||||||||||||||||||||||||||||||
| Unpaid Principal Balance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | June 30, 2023 | % of Total | March 31, 2023 | % of Total | June 30, 2023 | % of Total | June 30, 2022 | % of Total | QoQ Change | YoY Change | |||||||||||||||||||||||||||||||||||||||||||||||||
| Production by Channel | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Direct to Consumer | $ | 536 | 5 | % | $ | 445 | 6 | % | $ | 981 | 6 | % | $ | 6,589 | 14 | % | $ | 91 | $ | (5,608) | |||||||||||||||||||||||||||||||||||||||
| Retail / Joint Venture | 1,826 | 18 | % | 1,410 | 20 | % | 3,236 | 19 | % | 12,507 | 28 | % | 416 | (9,271) | |||||||||||||||||||||||||||||||||||||||||||||
| Wholesale | 1,369 | 14 | % | 1,128 | 16 | % | 2,497 | 15 | % | 7,843 | 17 | % | 241 | (5,346) | |||||||||||||||||||||||||||||||||||||||||||||
| Correspondent | 6,197 | 63 | % | 3,988 | 58 | % | 10,185 | 60 | % | 18,992 | 41 | % | 2,209 | (8,807) | |||||||||||||||||||||||||||||||||||||||||||||
| Total Production by Channel | $ | 9,928 | 100 | % | $ | 6,971 | 100 | % | $ | 16,899 | 100 | % | $ | 45,931 | 100 | % | $ | 2,957 | $ | (29,032) | |||||||||||||||||||||||||||||||||||||||
| Production by Product | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Agency | $ | 5,713 | 58 | % | $ | 3,387 | 49 | % | $ | 9,100 | 54 | % | $ | 28,334 | 61 | % | $ | 2,326 | $ | (19,234) | |||||||||||||||||||||||||||||||||||||||
| Government | 3,917 | 39 | % | 3,304 | 47 | % | 7,221 | 43 | % | 15,197 | 33 | % | 613 | (7,976) | |||||||||||||||||||||||||||||||||||||||||||||
| Non-QM | 110 | 1 | % | 134 | 2 | % | 244 | 1 | % | 842 | 2 | % | (24) | (598) | |||||||||||||||||||||||||||||||||||||||||||||
| Non-Agency | 69 | 1 | % | 73 | 1 | % | 142 | 1 | % | 1,262 | 3 | % | (4) | (1,120) | |||||||||||||||||||||||||||||||||||||||||||||
| Other | 119 | 1 | % | 73 | 1 | % | 192 | 1 | % | 296 | 1 | % | 46 | (104) | |||||||||||||||||||||||||||||||||||||||||||||
| Total Production by Product | $ | 9,928 | 100 | % | $ | 6,971 | 100 | % | $ | 16,899 | 100 | % | $ | 45,931 | 100 | % | $ | 2,957 | $ | (29,032) | |||||||||||||||||||||||||||||||||||||||
| % Purchase | 87 | % | 84 | % | 86 | % | 63 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| % Refinance | 13 | % | 16 | % | 14 | % | 37 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| (dollars in thousands) | June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | QoQ Change | YoY Change | |||||||||||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net(A)(B)(C)(D) | $ | 134,130 | $ | 112,822 | $ | 246,952 | $ | 709,879 | $ | 21,308 | $ | (462,927) | |||||||||||||||||||||||
| Pull through adjusted lock volume | $ | 10,754,380 | $ | 7,024,010 | $ | 17,778,390 | $ | 42,203,900 | $ | 3,730,370 | $ | (24,425,510) | |||||||||||||||||||||||
| Gain on originated residential mortgage loans, as a percentage of pull through adjusted lock volume, by channel: | |||||||||||||||||||||||||||||||||||
| Direct to Consumer | 3.59 | % | 4.19 | % | 3.86 | % | 3.61 | % | |||||||||||||||||||||||||||
| Retail / Joint Venture | 3.45 | % | 3.59 | % | 3.51 | % | 3.07 | % | |||||||||||||||||||||||||||
| Wholesale | 1.50 | % | 1.60 | % | 1.55 | % | 1.01 | % | |||||||||||||||||||||||||||
| Correspondent | 0.45 | % | 0.63 | % | 0.52 | % | 0.22 | % | |||||||||||||||||||||||||||
| Total gain on originated residential mortgage loans, as a percentage of pull through adjusted lock volume | 1.25 | % | 1.61 | % | 1.39 | % | 1.68 | % | |||||||||||||||||||||||||||
| Unpaid Principal Balance | ||||||||||||||||||||||||||||||||
| (in millions) | June 30, 2023 | March 31, 2023 | June 30, 2022 | QoQ Change | YoY Change | |||||||||||||||||||||||||||
| Performing servicing | ||||||||||||||||||||||||||||||||
| MSR-owned assets | $ | 391,040 | $ | 390,706 | $ | 389,762 | $ | 334 | $ | 1,278 | ||||||||||||||||||||||
| Residential whole loans | 1,967 | 1,915 | 3,832 | 52 | (1,865) | |||||||||||||||||||||||||||
| Third party | — | 3 | 436 | (3) | (436) | |||||||||||||||||||||||||||
| Total performing servicing | 393,007 | 392,624 | 394,030 | 383 | (1,023) | |||||||||||||||||||||||||||
| Special servicing | ||||||||||||||||||||||||||||||||
| MSR-owned assets | 10,588 | 10,708 | 10,138 | (120) | 450 | |||||||||||||||||||||||||||
| Residential whole loans | 6,786 | 6,649 | 7,127 | 137 | (341) | |||||||||||||||||||||||||||
| Third party | 95,603 | 94,067 | 86,754 | 1,536 | 8,849 | |||||||||||||||||||||||||||
| Total special servicing | 112,977 | 111,424 | 104,019 | 1,553 | 8,958 | |||||||||||||||||||||||||||
| Total servicing portfolio | $ | 505,984 | $ | 504,048 | $ | 498,049 | $ | 1,936 | $ | 7,935 | ||||||||||||||||||||||
| Agency servicing | ||||||||||||||||||||||||||||||||
| MSR-owned assets | $ | 273,990 | $ | 274,783 | $ | 279,694 | $ | (793) | $ | (5,704) | ||||||||||||||||||||||
| Third party | 9,139 | 9,091 | 9,774 | 48 | (635) | |||||||||||||||||||||||||||
| Total agency servicing | 283,129 | 283,874 | 289,468 | (745) | (6,339) | |||||||||||||||||||||||||||
| Government-insured servicing | ||||||||||||||||||||||||||||||||
| MSR-owned assets | 123,800 | 122,646 | 115,449 | 1,154 | 8,351 | |||||||||||||||||||||||||||
| Total government servicing | 123,800 | 122,646 | 115,449 | 1,154 | 8,351 | |||||||||||||||||||||||||||
| Non-Agency (private label) servicing | ||||||||||||||||||||||||||||||||
| MSR-owned assets | 3,838 | 3,985 | 4,757 | (147) | (919) | |||||||||||||||||||||||||||
| Residential whole loans | 8,753 | 8,564 | 10,959 | 189 | (2,206) | |||||||||||||||||||||||||||
| Third party | 86,464 | 84,979 | 77,416 | 1,485 | 9,048 | |||||||||||||||||||||||||||
| Total Non-Agency (private label) servicing | 99,055 | 97,528 | 93,132 | 1,527 | 5,923 | |||||||||||||||||||||||||||
| Total servicing portfolio | $ | 505,984 | $ | 504,048 | $ | 498,049 | $ | 1,936 | $ | 7,935 | ||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| (in thousands) | June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | QoQ Change | YoY Change | |||||||||||||||||||||||||||||
| Base servicing fees | |||||||||||||||||||||||||||||||||||
| MSR-owned assets | $ | 304,912 | $ | 298,959 | $ | 603,871 | $ | 550,755 | $ | 5,953 | $ | 53,116 | |||||||||||||||||||||||
| Residential whole loans | 1,920 | 2,416 | 4,336 | 6,408 | (496) | (2,072) | |||||||||||||||||||||||||||||
| Third party | 23,015 | 22,363 | 45,378 | 46,722 | 652 | (1,344) | |||||||||||||||||||||||||||||
| Total base servicing fees | 329,847 | 323,738 | 653,585 | 603,885 | 6,109 | 49,700 | |||||||||||||||||||||||||||||
| Other fees | |||||||||||||||||||||||||||||||||||
| Incentive | 13,733 | 10,813 | 24,546 | 37,451 | 2,920 | (12,905) | |||||||||||||||||||||||||||||
| Ancillary | 15,428 | 14,063 | 29,491 | 27,079 | 1,365 | 2,412 | |||||||||||||||||||||||||||||
| Boarding | 846 | 810 | 1,656 | 3,095 | 36 | (1,439) | |||||||||||||||||||||||||||||
Total other fees(A) | 30,007 | 25,686 | 55,693 | 67,625 | 4,321 | (11,932) | |||||||||||||||||||||||||||||
| Total Servicing Fees | $ | 359,854 | $ | 349,424 | $ | 709,278 | $ | 671,510 | $ | 10,430 | $ | 37,768 | |||||||||||||||||||||||
| (dollars in millions) | Current UPB | Weighted Average MSR (bps) | Carrying Value | |||||||||||||||||
| GSE | $ | 357,246.6 | 28 | bps | $ | 5,703.3 | ||||||||||||||
| Non-Agency | 51,345.5 | 46 | 722.4 | |||||||||||||||||
| Ginnie Mae | 123,799.9 | 42 | 2,262.9 | |||||||||||||||||
| Total/Weighted Average | $ | 532,392.0 | 33 | bps | $ | 8,688.6 | ||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GSE | $ | 5,703,219 | $ | 357,246,649 | 1,910,408 | 755 | 3.8 | % | 276 | 56 | 1.4 | % | 6.0 | % | 5.8 | % | 0.1 | % | 6.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-Agency | 722,415 | 51,345,436 | 467,338 | 635 | 4.4 | % | 287 | 207 | 9.7 | % | 6.8 | % | 4.7 | % | 2.1 | % | 5.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ginnie Mae | 2,262,922 | 123,799,933 | 530,658 | 693 | 3.6 | % | 325 | 32 | 0.5 | % | 6.4 | % | 6.3 | % | 0.1 | % | 10.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 8,688,556 | $ | 532,392,018 | 2,908,404 | 729 | 3.8 | % | 288 | 65 | 2.0 | % | 6.1 | % | 5.8 | % | 0.3 | % | 7.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Collateral Characteristics | |||||||||||||||||||||||
| Delinquency | Loans in Foreclosure | Real Estate Owned | Loans in Bankruptcy | ||||||||||||||||||||
90+ Days(F) | |||||||||||||||||||||||
| GSE | 0.4 | % | 0.2 | % | — | % | 0.1 | % | |||||||||||||||
| Non-Agency | 3.9 | % | 6.5 | % | 0.7 | % | 2.3 | % | |||||||||||||||
| Ginnie Mae | 1.6 | % | 0.5 | % | — | % | 0.5 | % | |||||||||||||||
| Weighted Average | 1.0 | % | 0.9 | % | 0.1 | % | 0.4 | % | |||||||||||||||
MSR Component(A) | Excess MSR | ||||||||||||||||||||||||||||||||||
Direct Excess MSRs | Current UPB (billions) (B) | Weighted Average MSR (bps) | Weighted Average Excess MSR (bps) | Interest in Excess MSR (%) | Carrying Value (millions) | ||||||||||||||||||||||||||||||
| Total/Weighted Average | $ | 46.1 | 32 | bps | 20 | bps | 32.5% – 100.0% | $ | 224.6 | ||||||||||||||||||||||||||
MSR Component(A) | |||||||||||||||||||||||||||||||||||||||||
Excess MSRs Through Equity Method Investees | 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 | 18.2 | 33 | bps | 20 | bps | 50 | % | 66.7 | % | 33.3 | % | 123.7 | |||||||||||||||||||||||||||||
| Collateral Characteristics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Carrying Amount | Current Principal Balance | Number of Loans | WA FICO Score(A) | WA Coupon | WA Maturity (months) | Average Loan Age (months) | Three Month Average CPR(B) | Three Month Average CRR(C) | Three Month Average CDR(D) | Three Month Average Recapture Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total/Weighted Average | $ | 224,632 | $ | 46,130,066 | 311,703 | 713 | 4.5 | % | 245 | 159 | 7.5 | % | 6.9 | % | 0.7 | % | 15.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Collateral Characteristics | |||||||||||||||||||||||
| Delinquency | Loans in Foreclosure | Real Estate Owned | Loans in Bankruptcy | ||||||||||||||||||||
90+ Days(E) | |||||||||||||||||||||||
Total/Weighted Average(F) | 1.5 | % | 2.8 | % | 0.7 | % | 0.3 | % | |||||||||||||||
| 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) | Three Month Average CPR(B) | Three Month Average CRR(C) | Three Month Average CDR(D) | Three Month Average Recapture Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average(G) | $ | 123,668 | $ | 18,193,581 | 33.3 | % | 179,666 | 724 | 4.6 | % | 225 | 120 | 7.5 | % | 7.3 | % | 0.2 | % | 22.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Collateral Characteristics | |||||||||||||||||||||||
| Delinquency | Loans in Foreclosure | Real Estate Owned | Loans in Bankruptcy | ||||||||||||||||||||
90+ Days(E) | |||||||||||||||||||||||
Total/Weighted Average(F) | 0.8 | % | 0.6 | % | 0.1 | % | 0.2 | % | |||||||||||||||
| June 30, 2023 | |||||||||||||||||||||||||||||
| 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 | $ | 371,955 | $ | 385,927 | $ | 16,235,846 | $ | 327,574 | 2.0 | % | |||||||||||||||||||
| Weighted Average Discount Rate | Weighted Average Life (Years)(C) | Six Months Ended June 30, 2023 | Face Amount of Secured Notes and Bonds Payable | Loan-to-Value (“LTV”)(A) | Cost of Funds(B) | |||||||||||||||||||||||||||||||||||||||||||||
| Change in Fair Value Recorded in Other Income (Loss) | Gross | Net(D) | Gross | Net | ||||||||||||||||||||||||||||||||||||||||||||||
Servicer advance investments(E) | 5.7 | % | 8.1 | $ | 7,900 | $ | 295,215 | 87.4 | % | 85.2 | % | 7.3 | % | 6.7 | % | |||||||||||||||||||||||||||||||||||
| June 30, 2023 | ||||||||
| Principal and interest advances | $ | 60,545 | ||||||
| Escrow advances (taxes and insurance advances) | 146,201 | |||||||
| Foreclosure advances | 120,828 | |||||||
| Total | $ | 327,574 | ||||||
| Asset Type | Outstanding Face Amount | Amortized Cost Basis | Gross Unrealized | Carrying Value(A) | Count | Weighted Average Life (Years) | 3-Month CPR(B) | Outstanding Repurchase Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||
| Gains | Losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Agency RMBS | $ | 7,899,981 | $ | 7,737,530 | $ | 56,076 | $ | (23,931) | $ | 7,769,675 | 39 | 8.9 | 5.6 | % | $ | 7,646,171 | ||||||||||||||||||||||||||||||||||||||||
| Treasury Bills | $ | 1,000,000 | $ | 978,982 | N/A | N/A | $ | 978,982 | 1 | 0.4 | N/A | $ | 972,255 | |||||||||||||||||||||||||||||||||||||||||||
Net Interest Spread(A) | |||||
| Weighted Average Asset Yield | 5.13 | % | |||
| Weighted Average Funding Cost | 5.24 | % | |||
| Net Interest Spread | (0.11) | % | |||
| Non-Agency RMBS Characteristics | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of Securities | Outstanding Face Amount | Amortized Cost Basis | Carrying Value | Principal Subordination(A) | Excess Spread(B) | Weighted Average Life (Years) | Weighted Average Coupon(C) | |||||||||||||||||||||||||||||||||||||||||||
| Total/weighted average | 683 | $ | 17,551,044 | $ | 926,758 | $ | 951,224 | 22.2 | % | 0.2 | % | 6.7 | 3.1 | % | ||||||||||||||||||||||||||||||||||||
| Collateral Characteristics | ||||||||||||||||||||||||||||||||
| Average Loan Age (years) | Collateral Factor(D) | 3-Month CPR(E) | Delinquency(F) | Cumulative Losses to Date | ||||||||||||||||||||||||||||
| Total/weighted average | 11.3 | 0.59 | 7.0 | % | 2.4 | % | 0.7 | % | ||||||||||||||||||||||||
Net Interest Spread(A) | |||||
| Weighted average asset yield | 5.01 | % | |||
| Weighted average funding cost | 7.12 | % | |||
| Net interest spread | (2.11) | % | |||
| 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 | $ | 479,193 | $ | 400,206 | 8,914 | 8.7 | % | 3.3 | ||||||||||||||||||||||||
Acquired performing loans(B) | 72,427 | 61,083 | 1,992 | 8.4 | % | 3.6 | ||||||||||||||||||||||||||
Acquired non-performing loans(C) | 28,168 | 22,862 | 336 | 8.2 | % | 2.8 | ||||||||||||||||||||||||||
| Total residential mortgage loans, held-for-sale, at lower of cost or market | $ | 100,595 | $ | 83,945 | 2,328 | 8.3 | % | 3.4 | ||||||||||||||||||||||||
Acquired performing loans(B)(D) | $ | 968,911 | $ | 933,849 | 3,414 | 6.5 | % | 10.8 | ||||||||||||||||||||||||
Acquired non-performing loans(C)(D) | 237,335 | 216,219 | 1,236 | 4.6 | % | 19.2 | ||||||||||||||||||||||||||
| Originated loans | 1,838,139 | 1,858,654 | 6,479 | 6.4 | % | 29.4 | ||||||||||||||||||||||||||
| Total residential mortgage loans, held-for-sale, at fair value | $ | 3,044,385 | $ | 3,008,722 | 11,129 | 6.3 | % | 22.7 | ||||||||||||||||||||||||
| Collateral Characteristics | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| UPB | Number of Loans | Weighted Average Coupon | Adjustable Rate Loan % | Average Loan Age (months) | Average Expected Life (Months) | Delinquency 90+ Days(A) | 12-Month CRR(B) | 12-Month CDR(C) | |||||||||||||||||||||||||||||||||||||||||||||
| SpringCastle | $ | 291,564 | 48,956 | 18.0 | % | 14.1 | % | 219 | 42 | 1.5 | % | 18.3 | % | 4.2 | % | ||||||||||||||||||||||||||||||||||||||
| Marcus | $ | 1,360,425 | 100,855 | 10.7 | % | 0.0 | % | 13 | 16 | 0.0 | % | 10.0 | % | 0.0 | % | ||||||||||||||||||||||||||||||||||||||
| Consumer loans | $ | 1,651,989 | 149,811 | 12.0 | % | 2.5 | % | 67 | 21 | 0.3 | % | 11.5 | % | 0.7 | % | ||||||||||||||||||||||||||||||||||||||
| 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 | 96 | 2.6 | % | $ | 18,029 | 1.9 | % | $ | 188 | 88.5 | % | $ | 1,522 | 1,578 | |||||||||||||||||||||||||||||||||
| Arizona | 149 | 4.0 | % | 58,185 | 6.0 | % | 391 | 91.2 | % | 2,020 | 1,535 | ||||||||||||||||||||||||||||||||||||
| Florida | 840 | 22.6 | % | 225,257 | 23.3 | % | 268 | 91.9 | % | 1,899 | 1,429 | ||||||||||||||||||||||||||||||||||||
| Georgia | 757 | 20.3 | % | 179,155 | 18.6 | % | 237 | 84.7 | % | 1,823 | 1,769 | ||||||||||||||||||||||||||||||||||||
| Indiana | 120 | 3.2 | % | 26,269 | 2.7 | % | 219 | 85.0 | % | 1,620 | 1,625 | ||||||||||||||||||||||||||||||||||||
| Mississippi | 132 | 3.5 | % | 23,953 | 2.5 | % | 181 | 93.9 | % | 1,627 | 1,652 | ||||||||||||||||||||||||||||||||||||
| Missouri | 362 | 9.7 | % | 71,871 | 7.4 | % | 199 | 86.7 | % | 1,567 | 1,407 | ||||||||||||||||||||||||||||||||||||
| Nevada | 109 | 2.9 | % | 36,108 | 3.7 | % | 331 | 89.9 | % | 1,853 | 1,456 | ||||||||||||||||||||||||||||||||||||
| North Carolina | 445 | 11.9 | % | 129,579 | 13.4 | % | 291 | 91.4 | % | 1,794 | 1,542 | ||||||||||||||||||||||||||||||||||||
| Oklahoma | 55 | 1.5 | % | 12,473 | 1.3 | % | 227 | 85.5 | % | 1,522 | 1,618 | ||||||||||||||||||||||||||||||||||||
| Tennessee | 88 | 2.4 | % | 29,487 | 3.1 | % | 335 | 94.3 | % | 1,973 | 1,500 | ||||||||||||||||||||||||||||||||||||
| Texas | 569 | 15.3 | % | 154,315 | 16.0 | % | 271 | 88.9 | % | 1,940 | 1,811 | ||||||||||||||||||||||||||||||||||||
| Other U.S. | 2 | 0.1 | % | 513 | 0.1 | % | 257 | 50.0 | % | 1,763 | 1,577 | ||||||||||||||||||||||||||||||||||||
| Total/Weighted Average | 3,724 | 100.0 | % | $ | 965,194 | 100.0 | % | $ | 259 | 88.8 | % | $ | 1,816 | 1,595 | |||||||||||||||||||||||||||||||||
| Loans originated | $ | 926,959 | |||
Loans repaid(A) | $ | 1,065,291 | |||
| Number of loans originated | 540 | ||||
| Unpaid principal balance | $ | 1,939,499 | |||
| Total commitment | $ | 2,607,686 | |||
| Average total commitment | $ | 2,300 | |||
Weighted average contractual interest(B) | 10.7 | % | |||
| Number of Loans | % | Total Commitment | % | Weighted Average Committed Loan Balance to Value(A) | ||||||||||||||||||||||||||||
| Construction | 460 | 40.5 | % | $ | 1,526,899 | 58.6 | % | 76.0% / 64.0% | ||||||||||||||||||||||||
| Bridge | 469 | 41.4 | % | 839,882 | 32.2 | % | 71.1% | |||||||||||||||||||||||||
| Renovation | 205 | 18.1 | % | 240,905 | 9.2 | % | 78.0% / 64.9% | |||||||||||||||||||||||||
| Total | 1,134 | 100.0 | % | $ | 2,607,686 | 100.0 | % | |||||||||||||||||||||||||
| Number of Loans | % | Total Commitment | % | |||||||||||||||||||||||
| California | 536 | 47.3 | % | $ | 1,368,948 | 52.5 | % | |||||||||||||||||||
| Washington | 104 | 9.2 | % | 232,962 | 8.9 | % | ||||||||||||||||||||
| New York | 40 | 3.5 | % | 186,163 | 7.1 | % | ||||||||||||||||||||
| Colorado | 67 | 5.9 | % | 179,393 | 6.9 | % | ||||||||||||||||||||
| Florida | 79 | 7.0 | % | 138,127 | 5.3 | % | ||||||||||||||||||||
| Arizona | 51 | 4.5 | % | 119,866 | 4.6 | % | ||||||||||||||||||||
| Illinois | 13 | 1.1 | % | 66,325 | 2.5 | % | ||||||||||||||||||||
| North Carolina | 44 | 3.9 | % | 57,277 | 2.2 | % | ||||||||||||||||||||
| Texas | 25 | 2.2 | % | 45,826 | 1.8 | % | ||||||||||||||||||||
| New Jersey | 31 | 2.7 | % | 43,371 | 1.7 | % | ||||||||||||||||||||
| Other U.S. | 144 | 12.7 | % | 169,428 | 6.5 | % | ||||||||||||||||||||
| Total | 1,134 | 100.0 | % | $ | 2,607,686 | 100.0 | % | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | QoQ Change | YoY Change | ||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||
| Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | 465,562 | $ | 469,839 | $ | 935,401 | $ | 925,878 | $ | (4,277) | $ | 9,523 | |||||||||||||||||||||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(139,410), $(105,691), $(245,101), and $(380,590), respectively) | 22,032 | (142,304) | (120,272) | 909,454 | 164,336 | (1,029,726) | |||||||||||||||||||||||||||||
| Servicing revenue, net | 487,594 | 327,535 | 815,129 | 1,835,332 | 160,059 | (1,020,203) | |||||||||||||||||||||||||||||
| Interest income | 398,786 | 346,614 | 745,400 | 437,061 | 52,172 | 308,339 | |||||||||||||||||||||||||||||
| Gain on originated residential mortgage loans, held-for-sale, net | 151,822 | 109,268 | 261,090 | 776,787 | 42,554 | (515,697) | |||||||||||||||||||||||||||||
| 1,038,202 | 783,417 | 1,821,619 | 3,049,180 | 254,785 | (1,227,561) | ||||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||
| Interest expense and warehouse line fees | 329,158 | 309,068 | 638,226 | 289,662 | 20,090 | 348,564 | |||||||||||||||||||||||||||||
| General and administrative | 181,508 | 167,155 | 348,663 | 471,509 | 14,353 | (122,846) | |||||||||||||||||||||||||||||
| Compensation and benefits | 189,606 | 188,880 | 378,486 | 732,277 | 726 | (353,791) | |||||||||||||||||||||||||||||
| Management fee | — | — | — | 46,174 | — | (46,174) | |||||||||||||||||||||||||||||
| Termination fee to affiliate | — | — | — | 400,000 | — | (400,000) | |||||||||||||||||||||||||||||
| 700,272 | 665,103 | 1,365,375 | 1,939,622 | 35,169 | (574,247) | ||||||||||||||||||||||||||||||
| Other Income (Loss) | |||||||||||||||||||||||||||||||||||
| Realized and unrealized gains (losses) on investments, net | 89,425 | (75,649) | 13,776 | (222,537) | 165,074 | 236,313 | |||||||||||||||||||||||||||||
| Other income (loss), net | 15,860 | 30,478 | 46,338 | 111,720 | (14,618) | (65,382) | |||||||||||||||||||||||||||||
| 105,285 | (45,171) | 60,114 | (110,817) | 150,456 | 170,931 | ||||||||||||||||||||||||||||||
| Income Before Income Taxes | 443,215 | 73,143 | 516,358 | 998,741 | 370,072 | (482,383) | |||||||||||||||||||||||||||||
| Income tax expense (benefit) | 56,530 | (16,806) | 39,724 | 275,479 | 73,336 | (235,755) | |||||||||||||||||||||||||||||
| Net Income | $ | 386,685 | $ | 89,949 | $ | 476,634 | $ | 723,262 | $ | 296,736 | $ | (246,628) | |||||||||||||||||||||||
| Noncontrolling interests in income (loss) of consolidated subsidiaries | 6,889 | (1,300) | 5,589 | 19,791 | 8,189 | (14,202) | |||||||||||||||||||||||||||||
| Dividends on preferred stock | 22,395 | 22,395 | 44,790 | 44,888 | — | (98) | |||||||||||||||||||||||||||||
| Net Income (Loss) Attributable to Common Stockholders | $ | 357,401 | $ | 68,854 | $ | 426,255 | $ | 658,583 | $ | 288,547 | $ | (232,328) | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | QoQ Change | YoY Change | ||||||||||||||||||||||||||||||
| Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | 432,965 | $ | 439,232 | $ | 872,197 | $ | 856,344 | $ | (6,267) | $ | 15,853 | |||||||||||||||||||||||
| Ancillary and other fees | 32,597 | 30,607 | 63,204 | 69,534 | 1,990 | (6,330) | |||||||||||||||||||||||||||||
| Servicing fee revenue and fees | 465,562 | 469,839 | 935,401 | 925,878 | (4,277) | 9,523 | |||||||||||||||||||||||||||||
| Change in fair value due to: | |||||||||||||||||||||||||||||||||||
| Realization of cash flows | (139,410) | (105,691) | (245,101) | (380,590) | (33,719) | 135,489 | |||||||||||||||||||||||||||||
Change in valuation inputs and assumptions, net of realized gains (losses)(A) | 161,442 | (36,613) | 124,829 | 1,359,669 | 198,055 | (1,234,840) | |||||||||||||||||||||||||||||
| Change in fair value of derivative instruments | — | — | — | 7,189 | — | (7,189) | |||||||||||||||||||||||||||||
| Gain (loss) on settlement of derivative instruments | — | — | — | (76,814) | — | 76,814 | |||||||||||||||||||||||||||||
| Servicing revenue, net | $ | 487,594 | $ | 327,535 | $ | 815,129 | $ | 1,835,332 | $ | 160,059 | $ | (1,020,203) | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | QoQ Change | YoY Change | ||||||||||||||||||||||||||||||
| Changes in interest and prepayment rates | $ | 342,527 | $ | (237,028) | $ | 105,499 | $ | 1,707,142 | $ | 579,555 | $ | (1,601,643) | |||||||||||||||||||||||
| Changes in discount rates | (80,826) | 189,603 | 108,777 | (131,046) | (270,429) | 239,823 | |||||||||||||||||||||||||||||
| Changes in other factors | (100,259) | 10,812 | (89,447) | (216,427) | (111,071) | 126,980 | |||||||||||||||||||||||||||||
| Change in valuation and assumptions | $ | 161,442 | $ | (36,613) | $ | 124,829 | $ | 1,359,669 | $ | 198,055 | $ | (1,234,840) | |||||||||||||||||||||||
| Unpaid Principal Balance | |||||||||||||||||||||||||||||
| (dollars in millions) | June 30, 2023 | March 31, 2023 | June 30, 2022 | QoQ Change | YoY Change | ||||||||||||||||||||||||
| GSE | $ | 357,247 | $ | 360,605 | $ | 374,752 | $ | (3,358) | $ | (17,505) | |||||||||||||||||||
| Non-Agency | 51,345 | 52,614 | 57,261 | (1,269) | (5,916) | ||||||||||||||||||||||||
| Ginnie Mae | 123,800 | 122,646 | 116,083 | 1,154 | 7,717 | ||||||||||||||||||||||||
| Total | $ | 532,392 | $ | 535,865 | $ | 548,096 | $ | (3,473) | $ | (15,704) | |||||||||||||||||||
| Unpaid Principal Balance | |||||||||||||||||||||||||||||
| (dollars in millions) | June 30, 2023 | March 31, 2023 | June 30, 2022 | QoQ Change | YoY Change | ||||||||||||||||||||||||
| Performing Servicing | $ | 393,007 | $ | 392,624 | $ | 394,030 | $ | 383 | $ | (1,023) | |||||||||||||||||||
| Special Servicing | 112,977 | 111,424 | 104,019 | 1,553 | 8,958 | ||||||||||||||||||||||||
| Total Servicing Portfolio | $ | 505,984 | $ | 504,048 | $ | 498,049 | $ | 1,936 | $ | 7,935 | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| (dollars in thousands) | June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | |||||||||||||||||||
| Pull through adjusted lock volume | $ | 10,754,380 | $ | 7,024,010 | $ | 17,778,390 | $ | 42,203,900 | |||||||||||||||
| Gain on originated residential mortgage loans, as a percentage of pull through adjusted lock volume, by channel: | |||||||||||||||||||||||
| Direct to Consumer | 3.59 | % | 4.19 | % | 3.86 | % | 3.61 | % | |||||||||||||||
| Retail / Joint Venture | 3.45 | % | 3.59 | % | 3.51 | % | 3.07 | % | |||||||||||||||
| Wholesale | 1.50 | % | 1.60 | % | 1.55 | % | 1.01 | % | |||||||||||||||
| Correspondent | 0.45 | % | 0.63 | % | 0.52 | % | 0.22 | % | |||||||||||||||
| Total gain on originated residential mortgage loans, as a percentage of pull through adjusted lock volume | 1.25 | % | 1.61 | % | 1.39 | % | 1.68 | % | |||||||||||||||
| Unpaid Principal Balance | |||||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| (in millions) | June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | QoQ Change | YoY Change | |||||||||||||||||||||||||||||
| Production by Channel | |||||||||||||||||||||||||||||||||||
| Direct to Consumer | $ | 536 | $ | 445 | $ | 981 | $ | 6,589 | $ | 91 | $ | (5,608) | |||||||||||||||||||||||
| Retail / Joint Venture | 1,826 | 1,410 | 3,236 | 12,507 | 416 | (9,271) | |||||||||||||||||||||||||||||
| Wholesale | 1,369 | 1,128 | 2,497 | 7,843 | 241 | (5,346) | |||||||||||||||||||||||||||||
| Correspondent | 6,197 | 3,988 | 10,185 | 18,992 | 2,209 | (8,807) | |||||||||||||||||||||||||||||
| Total Production by Channel | $ | 9,928 | $ | 6,971 | $ | 16,899 | $ | 45,931 | $ | 2,957 | $ | (29,032) | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
| June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | QoQ Change | YoY Change | ||||||||||||||||||||||||||||||
| Legal and professional | $ | 21,385 | $ | 12,755 | $ | 34,140 | $ | 49,408 | $ | 8,630 | $ | (15,268) | |||||||||||||||||||||||
| Loan origination | 12,323 | 11,757 | 24,080 | 74,916 | 566 | (50,836) | |||||||||||||||||||||||||||||
| Occupancy | 16,382 | 18,366 | 34,748 | 58,663 | (1,984) | (23,915) | |||||||||||||||||||||||||||||
| Subservicing | 40,625 | 35,256 | 75,881 | 88,795 | 5,369 | (12,914) | |||||||||||||||||||||||||||||
| Loan servicing | 2,520 | 2,976 | 5,496 | 10,170 | (456) | (4,674) | |||||||||||||||||||||||||||||
| Property and maintenance | 23,935 | 24,035 | 47,970 | 45,711 | (100) | 2,259 | |||||||||||||||||||||||||||||
Other | 64,338 | 62,010 | 126,348 | 143,846 | 2,328 | (17,498) | |||||||||||||||||||||||||||||
| Total | $ | 181,508 | $ | 167,155 | $ | 348,663 | $ | 471,509 | $ | 14,353 | $ | (122,846) | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
| June 30, 2023 | March 31, 2023 | June 30, 2023 | June 30, 2022 | QoQ Change | YoY Change | |||||||||||||||||||||||||||||||||
Real estate and other securities | $ | (122,578) | $ | 83,851 | $ | (38,727) | $ | (1,104,587) | $ | (206,429) | $ | 1,065,860 | ||||||||||||||||||||||||||
Residential mortgage loans and REO | (10,123) | 18,097 | 7,974 | (131,619) | (28,220) | 139,593 | ||||||||||||||||||||||||||||||||
Derivative instruments | 215,952 | (151,006) | 64,946 | 1,038,565 | 366,958 | (973,619) | ||||||||||||||||||||||||||||||||
Other(A) | 6,174 | (26,591) | (20,417) | (24,896) | 32,765 | 4,479 | ||||||||||||||||||||||||||||||||
| Realized and unrealized gains (losses) on investments, net | 89,425 | (75,649) | 13,776 | (222,537) | 165,074 | 236,313 | ||||||||||||||||||||||||||||||||
| Unrealized gain (loss) on secured notes and bonds payable | 4,549 | (2,500) | 2,049 | 35,151 | 7,049 | (33,102) | ||||||||||||||||||||||||||||||||
| Rental revenue | 17,743 | 18,123 | 35,866 | 20,402 | (380) | 15,464 | ||||||||||||||||||||||||||||||||
| Property and maintenance revenue | 33,117 | 33,637 | 66,754 | 66,340 | (520) | 414 | ||||||||||||||||||||||||||||||||
| (Provision) reversal for credit losses on securities | (2,035) | 1,228 | (807) | (2,885) | (3,263) | 2,078 | ||||||||||||||||||||||||||||||||
| Valuation and credit loss (provision) reversal on loans and real estate owned | (3,777) | 1,575 | (2,202) | (4,643) | (5,352) | 2,441 | ||||||||||||||||||||||||||||||||
| Other income (loss) | (33,737) | (21,585) | (55,322) | (2,645) | (12,152) | (52,677) | ||||||||||||||||||||||||||||||||
Other income (loss), net | 15,860 | 30,478 | 46,338 | 111,720 | (14,618) | (65,382) | ||||||||||||||||||||||||||||||||
Total other income (loss) | $ | 105,285 | $ | (45,171) | $ | 60,114 | $ | (110,817) | $ | 150,456 | $ | 170,931 | ||||||||||||||||||||||||||
| June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Collateral | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations/Collateral(C) | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase Agreements: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warehouse Credit Facilities-Residential Mortgage Loans(F) | $ | 2,446,085 | $ | 2,445,472 | Jul-23 to Jan-25 | 6.6 | % | 0.5 | $ | 2,837,968 | $ | 2,886,669 | $ | 2,792,211 | 17.1 | $ | 2,606,004 | |||||||||||||||||||||||||||||||||||||||||||||
Warehouse Credit Facilities-Mortgage Loans Receivable(E) | 1,108,682 | 1,108,682 | Dec-23 to May-24 | 7.9 | % | 0.3 | 1,328,445 | 1,328,445 | 1,328,445 | 1.0 | 1,220,662 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS and Treasury(D) | 8,618,426 | 8,618,426 | Jul-23 to Feb-24 | 5.3 | % | 0.3 | 8,899,981 | 8,716,511 | 8,748,656 | 8.0 | 6,821,788 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency RMBS(E) | 584,848 | 584,848 | Jul-23 to Oct-27 | 7.1 | % | 1.0 | 14,020,165 | 900,002 | 920,969 | 5.9 | 609,282 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Secured Financing Agreements | 12,758,041 | 12,757,428 | 5.9 | % | 0.4 | 11,257,736 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Secured Notes and Bonds Payable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excess MSRs(G) | 202,663 | 202,663 | Aug-25 | 3.7 | % | 2.1 | 64,323,647 | 242,967 | 286,573 | 6.1 | 227,596 | |||||||||||||||||||||||||||||||||||||||||||||||||||
MSRs(H) | 4,305,473 | 4,295,903 | Jan-24 to Mar-28 | 6.6 | % | 2.3 | 524,360,256 | 6,473,508 | 8,614,954 | 7.4 | 4,791,543 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advance Investments(I) | 295,215 | 294,398 | Aug-23 to Mar-24 | 7.3 | % | 0.7 | 327,574 | 371,955 | 385,927 | 8.2 | 318,445 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advances(I) | 2,134,039 | 2,133,531 | Aug-23 to Nov-26 | 4.5 | % | 0.6 | 2,526,703 | 2,447,918 | 2,447,918 | 0.7 | 2,361,259 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Mortgage Loans(J) | 650,000 | 650,000 | May-24 | 6.0 | % | 0.9 | 655,807 | 661,185 | 667,699 | 29.0 | 769,988 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Loans(K) | 1,476,880 | 1,441,648 | Jun-28 to Sep 37 | 9.3 | % | 4.7 | 1,651,989 | 1,587,232 | 1,602,571 | 1.8 | 299,498 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| SFR Properties | 827,339 | 784,608 | Mar-26 to Sep-27 | 4.2 | % | 3.8 | N/A | 958,104 | 958,104 | N/A | 817,695 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage Loans Receivable | 524,062 | 512,255 | Jul 26 to Dec-26 | 5.6 | % | 3.3 | 560,721 | 560,721 | 560,721 | 0.6 | 512,919 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Secured Notes and Bonds Payable | 10,415,671 | 10,315,006 | 6.2 | % | 2.3 | 10,098,943 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total/ Weighted Average | $ | 23,173,712 | $ | 23,072,434 | 6.0 | % | 1.2 | $ | 21,356,679 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2023 | |||||||||||||||||||||||
Outstanding Balance at June 30, 2023 | Average Daily Amount Outstanding(A) | Maximum Amount Outstanding | Weighted Average Daily Interest Rate | ||||||||||||||||||||
| Secured Financing Agreements | |||||||||||||||||||||||
| Agency RMBS | $ | 8,618,426 | $ | 7,798,599 | $ | 8,637,007 | 4.92 | % | |||||||||||||||
| Non-Agency RMBS | 584,848 | 593,023 | 612,629 | 6.82 | % | ||||||||||||||||||
| Residential mortgage loans | 2,190,699 | 1,922,920 | 2,551,584 | 6.47 | % | ||||||||||||||||||
| Secured Notes and Bonds Payable | |||||||||||||||||||||||
| MSRs | 517,000 | 661,337 | 767,000 | 8.08 | % | ||||||||||||||||||
| Servicer Advances | 2,226,879 | 1,946,342 | 2,353,704 | 3.44 | % | ||||||||||||||||||
| Residential mortgage loans | 650,000 | 623,228 | 749,905 | 5.75 | % | ||||||||||||||||||
| Total/weighted average | $ | 14,787,852 | $ | 13,545,449 | $ | 15,671,829 | 5.15 | % | |||||||||||||||
Average Daily Amount Outstanding(A) | ||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||
| Secured Financing Agreements | ||||||||||||||||||||||||||
| Agency RMBS | $ | 7,787,408 | $ | 7,514,693 | $ | 8,408,051 | $ | 8,200,636 | ||||||||||||||||||
| Non-Agency RMBS | 1,962,669 | 604,806 | 615,830 | 613,057 | ||||||||||||||||||||||
| Residential mortgage loans and REO | 2,062,667 | 1,751,530 | 1,726,716 | 3,610,003 | ||||||||||||||||||||||
| Year | Price | |||||||
| 2023 | 101.563% | |||||||
| 2024 and thereafter | 100.000% | |||||||
| Year Ending | Nonrecourse(A) | Recourse(B) | Total | |||||||||||||||||
| July 1 through December 31, 2023 | $ | 1,204,448 | $ | 11,089,405 | $ | 12,293,853 | ||||||||||||||
| 2024 | 1,949,664 | 3,387,298 | 5,336,962 | |||||||||||||||||
| 2025 | — | 1,655,367 | 1,655,367 | |||||||||||||||||
| 2026 | — | 1,736,959 | 1,736,959 | |||||||||||||||||
| 2027 | 728,691 | 245,000 | 973,691 | |||||||||||||||||
| 2028 and thereafter | 1,476,880 | 250,000 | 1,726,880 | |||||||||||||||||
| $ | 5,359,683 | $ | 18,364,029 | $ | 23,723,712 | |||||||||||||||
| Debt Obligations / Collateral | Borrowing Capacity | Balance Outstanding | Available Financing(A) | |||||||||||||||||
| Secured Financing Agreements | ||||||||||||||||||||
| Residential mortgage loans and REO | $ | 5,398,330 | $ | 2,034,184 | $ | 3,364,146 | ||||||||||||||
| Loan origination | 7,421,000 | 1,520,582 | 5,900,418 | |||||||||||||||||
| Secured Notes and Bonds Payable | ||||||||||||||||||||
| Excess MSRs | 286,380 | 202,662 | 83,718 | |||||||||||||||||
| MSRs | 7,155,473 | 4,305,473 | 2,850,000 | |||||||||||||||||
| Servicer advances | 3,595,000 | 2,429,254 | 1,165,746 | |||||||||||||||||
| Residential mortgage loans | 290,715 | 189,364 | 101,351 | |||||||||||||||||
| $ | 24,146,898 | $ | 10,681,519 | $ | 13,465,379 | |||||||||||||||
| Dividends Declared per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of Shares | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Series | June 30, 2023 | December 31, 2022 | Liquidation Preference(A) | Issuance Discount | Carrying Value(B) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Series A, 7.50% issued July 2019(C) | 6,200 | 6,200 | $ | 155,002 | 3.15 | % | $ | 149,822 | $ | 0.47 | $ | 0.47 | $ | 0.94 | $ | 0.94 | ||||||||||||||||||||||||||||||||||||||||
Series B, 7.125% issued August 2019(C) | 11,261 | 11,261 | 281,518 | 3.15 | % | 272,654 | 0.45 | 0.45 | 0.89 | 0.89 | ||||||||||||||||||||||||||||||||||||||||||||||
Series C, 6.375% issued February 2020(C) | 15,903 | 15,903 | 397,584 | 3.15 | % | 385,289 | 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 | 0.44 | 0.88 | 0.88 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total | 51,964 | 51,964 | $ | 1,299,104 | $ | 1,257,254 | $ | 1.76 | $ | 1.76 | $ | 3.51 | $ | 3.51 | ||||||||||||||||||||||||||||||||||||||||||
| Held by Former Manager | 21,471,990 | ||||
| Issued to the independent directors | 2,000 | ||||
| Total | 21,473,990 | ||||
| Common Dividends Declared for the Period Ended | Paid/Payable | Amount Per Share | ||||||||||||
| March 31, 2022 | April 2022 | $ | 0.25 | |||||||||||
| June 30, 2022 | July 2022 | 0.25 | ||||||||||||
| September 30, 2022 | October 2022 | 0.25 | ||||||||||||
| December 31, 2022 | January 2023 | 0.25 | ||||||||||||
| March 31, 2023 | April 2023 | 0.25 | ||||||||||||
| June 30, 2023 | July 2023 | 0.25 | ||||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||
| 2023 | 2022 | Change | ||||||||||||||||||
Beginning of period — cash, cash equivalents and restricted cash | $ | 1,617,634 | $ | 1,528,442 | $ | 89,192 | ||||||||||||||
| Net cash provided by (used in) operating activities | 1,232,246 | 5,355,298 | (4,123,052) | |||||||||||||||||
| Net cash provided by (used in) investing activities | (826,689) | 465,332 | (1,292,021) | |||||||||||||||||
| Net cash provided by (used in) financing activities | (334,401) | (5,404,264) | 5,069,863 | |||||||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 71,156 | 416,366 | (345,210) | |||||||||||||||||
End of period — cash, cash equivalents and restricted cash | $ | 1,688,790 | $ | 1,944,808 | $ | (256,018) | ||||||||||||||
| Estimated Change in Book Value (in millions) (A) | ||||||||||||||
| Interest rate change (bps) | June 30, 2023 | December 31, 2022 | ||||||||||||
| +50bps | +314.6 | +403.4 | ||||||||||||
| +25bps | +158.9 | +203.3 | ||||||||||||
| -25bps | -158.9 | -203.3 | ||||||||||||
| -50bps | -322.7 | -411.5 | ||||||||||||
| Estimated Change in Book Value (in millions) (A) | ||||||||||||||
| Mortgage basis change (bps) | June 30, 2023 | December 31, 2022 | ||||||||||||
| +20bps | +14.0 | +0.9 | ||||||||||||
| +10bps | +7.2 | +0.6 | ||||||||||||
| -10bps | -7.2 | -0.6 | ||||||||||||
| -20bps | -14.9 | -1.8 | ||||||||||||
Fair value at June 30, 2023 | $ | 5,703,219 | ||||||||||||||||||||||||
| Discount rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 6,144,483 | $ | 5,915,750 | $ | 5,505,165 | $ | 5,320,389 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | 441,264 | $ | 212,531 | $ | (198,054) | $ | (382,830) | ||||||||||||||||||
| Percentage | 7.7 | % | 3.7 | % | (3.5) | % | (6.7) | % | ||||||||||||||||||
| Prepayment rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 5,968,039 | $ | 5,830,194 | $ | 5,589,925 | $ | 5,488,331 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | 264,820 | $ | 126,975 | $ | (113,294) | $ | (214,888) | ||||||||||||||||||
| Percentage | 4.6 | % | 2.2 | % | (2.0) | % | (3.8) | % | ||||||||||||||||||
| Delinquency rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 5,795,070 | $ | 5,752,835 | $ | 5,646,473 | $ | 5,583,270 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | 91,851 | $ | 49,616 | $ | (56,746) | $ | (119,949) | ||||||||||||||||||
| Percentage | 1.6 | % | 0.9 | % | (1.0) | % | (2.1) | % | ||||||||||||||||||
Fair value at June 30, 2023 | $ | 722,415 | ||||||||||||||||||||||||
| Discount rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 795,069 | $ | 757,095 | $ | 690,644 | $ | 661,454 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | 72,654 | $ | 34,680 | $ | (31,771) | $ | (60,961) | ||||||||||||||||||
| Percentage | 10.1 | % | 4.8 | % | (4.4) | % | (8.4) | % | ||||||||||||||||||
| Prepayment rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 764,577 | $ | 742,921 | $ | 702,935 | $ | 684,379 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | 42,162 | $ | 20,506 | $ | (19,480) | $ | (38,036) | ||||||||||||||||||
| Percentage | 5.8 | % | 2.8 | % | (2.7) | % | (5.3) | % | ||||||||||||||||||
| Delinquency rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 753,434 | $ | 738,695 | $ | 704,775 | $ | 685,950 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | 31,019 | $ | 16,280 | $ | (17,640) | $ | (36,465) | ||||||||||||||||||
| Percentage | 4.3 | % | 2.3 | % | (2.4) | % | (5.0) | % | ||||||||||||||||||
Fair value at June 30, 2023 | $ | 2,262,922 | ||||||||||||||||||||||||
| Discount rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 2,432,035 | $ | 2,344,396 | $ | 2,187,016 | $ | 2,116,147 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | 169,113 | $ | 81,474 | $ | (75,906) | $ | (146,775) | ||||||||||||||||||
| Percentage | 7.5 | % | 3.6 | % | (3.4) | % | (6.5) | % | ||||||||||||||||||
| Prepayment rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 2,385,837 | $ | 2,321,363 | $ | 2,208,488 | $ | 2,157,918 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | 122,915 | $ | 58,441 | $ | (54,434) | $ | (105,004) | ||||||||||||||||||
| Percentage | 5.4 | % | 2.6 | % | (2.4) | % | (4.6) | % | ||||||||||||||||||
| Delinquency rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
| Estimated fair value | $ | 2,470,272 | $ | 2,371,522 | $ | 2,146,202 | $ | 2,023,223 | ||||||||||||||||||
| Change in estimated fair value: | ||||||||||||||||||||||||||
| Amount | $ | 207,350 | $ | 108,600 | $ | (116,720) | $ | (239,699) | ||||||||||||||||||
| Percentage | 9.2 | % | 4.8 | % | (5.2) | % | (10.6) | % | ||||||||||||||||||
| Exhibit Number | Exhibit Description | |||||||
| Agreement and Plan of Merger, dated as of July 23, 2023, by and among Rithm Capital Corp., Sculptor Capital Management, Inc., Sculptor Capital LP, Sculptor Capital Advisors LP, Sculptor Capital Advisors II LP, Calder Sub, Inc., Calder Sub I, LP, Calder Sub II, LP, and Calder Sub III, LP (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K, filed July 24, 2023) | ||||||||
| Rithm Capital Corp. 2023 Omnibus Incentive Plan, adopted as of May 25, 2023 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed May 30, 2023) | ||||||||
| 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 | ||||||||
| Voting Agreement, dated as of July 23, 2023, by and between Rithm Capital Corp. and James Levin (incorporated by reference to Exhibit 99.2 to the Company’s Current Report on Form 8-K, filed July 24, 2023) | ||||||||
| Voting Agreement, dated as of July 23, 2023, by and between Rithm Capital Corp. and Wayne Cohen (incorporated by reference to Exhibit 99.3 to the Company’s Current Report on Form 8-K, filed July 24, 2023) | ||||||||
| Voting Agreement, dated as of July 23, 2023, by and between Rithm Capital Corp. and Brett Klein (incorporated by reference to Exhibit 99.4 to the Company’s Current Report on Form 8-K, filed July 24, 2023) | ||||||||
| Voting Agreement, dated as of July 23, 2023, by and between Rithm Capital Corp. and Peter Wallach (incorporated by reference to Exhibit 99.5 to the Company’s Current Report on Form 8-K, filed July 24, 2023) | ||||||||
| 101 | The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Comprehensive Operations; (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) | |||||||
| + | Indicates a management contract or compensatory plan or arrangement | |||||||
| † | Portions of this exhibit have been omitted. | |||||||
| * | Exhibit filed herewith. | |||||||
| ** | Exhibit furnished herewith. | |||||||
| # | 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, 2023 | ||||||||
| By: | /s/ Nicola Santoro, Jr. | |||||||
| Nicola Santoro, Jr. | ||||||||
| Chief Financial Officer and Treasurer | ||||||||
| (Principal Financial Officer) | ||||||||
| August 4, 2023 | ||||||||
| 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, 2023 | /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, 2023 | /s/ Nicola Santoro, Jr. | ||||
| Nicola Santoro, Jr. | |||||
| Chief Financial Officer | |||||
| August 4, 2023 | /s/ Michael Nierenberg | ||||
| Michael Nierenberg | |||||
| Chief Executive Officer | |||||
| August 4, 2023 | /s/ Nicola Santoro, Jr. | ||||
| Nicola Santoro, Jr. | |||||
| Chief Financial Officer | |||||