Rithm Capital Corp.
For the period ended Jun 30, 2025. Filed Aug 1, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 1, 2025
RITM$9.23-2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0001556593-25-000016
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0001556593-25-000024
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 310 previous paragraphs and 311 current paragraphs.
199 unchanged; 85 reworded; 24 added; 21 removed; 5 previous and 3 current paragraphs rearranged.
Tables are not compared: 43 previous and 43 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
Total gain on originated residential mortgage loans, HFS, net increased $19.8 million to $172.7 million for the three months ended June 30, 2025 compared to the three months ended March 31, 2025. The increase is attributable toan increase in pull through adjusted lock volume across channels. Refinance originations comprised 27.2% of funded loans for the three months ended June 30, 2025, relatively flat compared to 27.0% for the three months ended March 31, 2025, as interest rates remained elevated.
Current report
Total gain on originated residential mortgage loans, HFS, net increased $31.7 million to $325.7 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase is attributable toan increase in pull through adjusted lock volume in the Direct to Consumer and Correspondent channels, partially offset by reduced volume in Retail/Joint Venture channel. Refinance originations comprised 27.1% of funded loans for the six months ended June 30, 2025, higher than 15.0% for the six months ended June 30, 2024, as interest rates moved lower year-over-year.
Current report
For the three months ended June 30, 2025, funded loan origination volume was $16.3 billion, up from $11.8 billion in the three months ended March 31, 2025. Gain on sale margin for the three months ended June 30, 2025 was 1.04%, 19 bps lower than 1.23% for the three months ended March 31, 2025. The lower gain on sale margin for the three months ended June 30, 2025 was primarily due to lower margins in the Correspondent channel (refer to the tables above).
Current report
See Note 2 to our consolidated financial statements in this Quarterly Report on Form 10-Q.
Current report
Servicing revenue, net increased $182.4 million, primarily driven by (i) increased servicing revenue from a $19.3 billion increase in servicing UPB and (ii) a decrease in mark-to-market loss on our MSRs. The increase was partially offset by (i) a decrease in net gains on MSR economic hedges, including government and government-backed securities and to-be-announced forward contract positions (“TBAs”), and (ii) increased realization of cash flows driven by higher prepayment speeds.
Current report
Servicing revenue, net decreased $188.7 million, primarily driven by a change from mark-to-market gain to loss on our MSRs and increased realization of cash flows driven by higher prepayment speeds. The decrease was partially offset by (i) a change from net losses to net gains on MSR economic hedges, including government and government-backed securities and TBAs, and (ii) increased servicing revenue as a result of a $54.1 billion increase in servicing UPB and prospective classification of certain servicing costs to loan servicing expense within general and administrative in 2025.
Current report
Interest income for the three months ended June 30, 2025 increased $37.2 million, primarily driven by higher average custodial account balances during the second quarter, partially offset by a reduced securities portfolio.
Current report
Interest income for the six months ended June 30, 2025 increased $6.3 million, primarily driven by higher average custodial account balances during the six months ended June 30, 2025, partially offset by a reduced securities portfolio.
Current report
Gain on originated residential mortgage loans, HFS, netincreased$9.9 million, primarily driven by an increase in pull through adjusted lock volume across channels.
Current report
Gain on originated residential mortgage loans, HFS, netincreased$33.3 million, primarily driven by an increase in pull through adjusted lock volume in the Direct to Consumer and Correspondent channels, partially offset by reduced volume in Retail/Joint Venture.
Current report
Other revenues increased $3.3 million primarily due to higher property inspection and maintenance revenue at Guardian, as well as an increase in income from loan recovery.
Current report
Asset management revenues increased $7.3 million, primarily driven by an increase in management fees earned from AUM growth during the three months ended June 30, 2025.
Current report
Asset management revenues increased $2.3 million, primarily due to an increase in management fees earned from AUM growth, partially offset by lower incentive income driven by off-cycle crystallization related to certain funds managed by Sculptor.
Current report
Interest expense and warehouse line fees decreased $1.2 million, primarily driven by a decrease in leverage on servicing related assets and government and government-backed securities, resulting from securities sales, during the three months ended June 30, 2025. The decrease was partially offset by higher borrowing costs on our MSRs, driven by the redemption of lower fixed rate term notes refinanced into higher variable rate facilities.
Current report
Interest expense and warehouse line fees decreased $38.8 million, primarily driven by a decrease in average SOFR of approximately 5.4% to 4.4% year-over-year, reducing variable financing costs on servicing related assets and securities. The decrease was partially offset by higher average outstanding borrowing on these assets.
Current report
General and administrative expenses consist of the following:
Current report
General and administrative expenses were comparable quarter-over-quarter given a similar level of deal activity and no significant changes to loan origination and servicing portfolio. Loan origination and occupancy expense increases were driven by higher volume, partially offset by a decrease in subservicing expense as a result of servicing transfer of certain MSRs to in-house servicing towards the end of first quarter of 2025.
Current report
Compensation and benefits increased $22.9 million, primarily due to increased loan origination and servicing compensation at the operating company driven by performance and portfolio growth.
Current report
Total other income (loss) was $41.2 million for the three months ended June 30, 2025, compared to $7.9 million for the three months ended March 31, 2025. The quarter-over-quarter increase was primarily due to a (i) $10.2 million increase in gains from consolidated CFEs, (ii) $9.7 million change from losses to gains from public equities, (iii) $4.8 million decrease in loss on consumer loans and (iv) $6.0 million release of escrow net of reserves related to an acquisition in 2021.
Current report
Total other income (loss) was $49.1 million for the six months ended June 30, 2025, compared to $121.8 million in the prior year. The year-over-year decrease was primarily due to a (i) $24.3 million change from net gains to net losses related to derivative and hedging instruments, (ii) $21.0 million decrease in mark-to-market on Excess MSRs and (iii) $28.2 million bargain purchase gain recognized during the six months ended June 30, 2024 from the acquisition of Computershare Mortgage Services Inc. and certain affiliated companies (“Computershare”).
Current report
(H)The Company redeemed 2.0 million shares on March 28, 2025.
Current report
Net cash provided by (used in) operating activities was approximately $0.9 billion and $(1.2) billion for the six months ended June 30, 2025 and 2024, respectively. The increase of $2.1 billion in net cash provided by operating activities was primarily driven by an increase in sales proceeds and loan repayment proceeds for residential mortgage loans, HFS of approximately $4.5 billion, partially offset by an increase in mortgage loans originated and purchased for sale, net of fees of approximately $2.7 billion.
Current report
Net cash provided by (used in) investing activities was approximately $0.6 billion and $(1.4) billion for the six months ended June 30, 2025 and 2024, respectively. The increase of $2.0 billion in net cash provided by investing activities was primarily driven by a decrease in purchases of Treasury securities of $5.0 billion, partially offset by a decrease in Treasury sales and Treasury securities payable of $2.7 billion and a $0.3 billion net decrease in cash provided by reverse repurchase and repurchase agreement activity.
Current report
Net cash provided by (used in) financing activities was approximately $(1.2) billion and $2.5 billion for the six months ended June 30, 2025 and 2024, respectively. The increase of net cash used in financing activities of $3.7 billion was primarily driven by an increase in repayments of warehouse credit facilities of $8.4 billion and a decrease of borrowings under secured financing agreements of $8.8 billion, partially offset by a decrease in repayments of secured financing agreements of $6.8 billion and an increase of borrowings under warehouse credit facilities of $6.9 billion.
Removed paragraphs (21)
Previous report
Total gain on originated residential mortgage loans, HFS, net decreased $34.8 million to $152.9 million for the three months ended March 31, 2025 compared to the three months ended December 31, 2024. The decrease is attributable to a decrease in pull through adjusted lock volume primarily driven by decreased production volume in the Correspondent channel. Refinance originations comprised 27.0% of funded loans for the three months ended March 31, 2025, lower than 28.9% for the three months ended December 31, 2024, due to lower refinance activity as interest rates remained elevated.
Previous report
Percentage changes in the table above deemed “n/m” are not meaningful.
Previous report
Servicing revenue, net decreased $1.1 billion, primarily driven by a $1.1 billion decrease in fair value of our MSRs portfolio during the three months ended March 31, 2025 compared to the prior quarter. The decrease in fair value during the first quarter 2025 was primarily driven by a decrease in the forward interest curve, resulting in a $395.0 million, or approximately 3.9%, negative mark on our over $10.1 billion MSRs value.
Previous report
As of March 31, 2025, the performing loan servicing division serviced $516.8 billion UPB of loans, the special servicing division serviced $269.7 billion UPB of loans, including $244.2 billion UPB of third-party servicing, and third parties serviced $58.3 billion UPB of loans, for a total servicing portfolio of $844.9 billion UPB, representing a $1.0 billion increase from December 31, 2024, contributing to the increase in servicing fee revenue. The increase in servicing fee revenue was also driven by prospective classification of certain servicing costs to loan servicing expense within general and administrative. The decrease in UPB of MSRs serviced by third-parties was driven by the transfer of certain MSRs to in-house servicing during the first quarter of 2025.
Previous report
Servicing revenue, net decreased $0.5 billion, primarily driven by a $0.6 billion decrease in fair value of our MSRs portfolio during the three months ended March 31, 2025 compared to three months ended March 31, 2024. The decrease in fair value during the first quarter 2025 was primarily driven by a decrease in the forward interest curve, resulting in a $395.0 million, or approximately 3.9%, negative mark on our over $10.1 billion MSRs value.
Previous report
As noted above, our total servicing portfolio was $844.9 billion UPB as of March 31, 2025, representing a $197.3 billion increase from March 31, 2024, which resulted in the increase in servicing fee revenue. The increase in the total servicing portfolio UPB was driven by organic growth and the Computershare Acquisition in the second quarter of 2024, primarily UPB related to Special Servicing.
Previous report
Interest income for the three months ended March 31, 2025 decreased $44.4 million, primarily driven by decreased interest rates during the quarter resulting in lower custodial float earnings and securities interest income. Average custodial balance also decreased quarter over quarter due to paydowns, further contributing to the decrease in custodial float earnings.
Previous report
Interest income for the three months ended March 31, 2025 increased $6.5 million, primarily driven by increased custodial float earnings as a result of higher average custodial balances driven by the Computershare Acquisition in the second quarter 2024. This was partially offset by decreased interest income on our Marcus consumer loans due to portfolio runoff throughout 2024.
Previous report
Gain on originated residential mortgage loans, HFS, netdecreased$41.9 million driven by a decrease in the pull through adjusted lock volume primarily driven by decreased production volume in the Correspondent channel.
Previous report
Gain on originated residential mortgage loans, HFS, netincreased$17.3 million driven by an increase in the pull through adjusted lock volume due to seasonal volume increases.
Previous report
Asset management revenues decreased $171.2 million due to the timing of incentive income crystallizations. Incentive income during the first quarter was driven by off-cycle crystallizations. Management fees remained comparable quarter over quarter.
Previous report
Asset management revenues increased $16.7 million due to the timing of incentive income crystallizations. Incentive income during the first quarters of 2025 and 2024 were driven by off-cycle crystallizations. Management fees remained comparable year over year.
Previous report
Interest expense and warehouse line fees decreased $30.3 million primarily driven by decreased interest rates during the quarter on our variable rate financing.
Previous report
Interest expense and warehouse line fees increased $9.2 million primarily driven by increased financing costs on our MSRs and servicer advances driven by portfolio growth as a result of the Computershare Acquisition in the second quarter 2024 and increased interest expense related to our private offering of the 2029 Senior Notes at the end of the first quarter 2024. This was partially offset by lower interest expense on the Marcus consumer loans due to portfolio runoff throughout 2024.
Previous report
General and administrative expenses increased $3.9 million quarter over quarter, primarily attributable to increased loan servicing expenses driven by portfolio growth, boarding fees driven by the servicing transfer of certain MSRs to in-house servicing during the first quarter of 2025, and prospective classification of certain servicing costs from servicing revenue, net to loan servicing expense within general and administrative. The increase was partially offset by decreased legal and professional expenses related to prior quarter deal activity.
Previous report
Compensation and benefits decreased $91.4 million, primarily due to the timing of Asset Management’s discretionary bonus accruals in the fourth quarter linked to fund performance.
Previous report
Total other income (loss) was $216.5 million for the three months ended March 31, 2025 compared to $(557.8) million in the prior quarter. The quarter over quarter increase was primarily due to an increase in realized and unrealized gains, net, including a $744.3 million increase on our MSRs portfolio hedges including real estate and other securities and derivative and hedging instruments.
Previous report
Total other income (loss) was $216.5 million for the three months ended March 31, 2025 compared to $(29.1) million in the prior year. The year over year increase was primarily due to an increase in realized and unrealized gains, net, including a $268.2 million increase on our MSRs portfolio hedges including real estate and other securities and derivative and hedging instruments.
Previous report
Net cash provided by (used in) operating activities was approximately $1.4 billion and $(1.3) billion for the three months ended March 31, 2025 and 2024, respectively. The net cash provided by operating activities is primarily attributable to proceeds from residential mortgage loan repayments, offset by lower volume of mortgage originations resulting from a decrease in refinance activity as interest rates remained elevated.
Previous report
Net cash used in investing activities was approximately $1.3 billion and $4.1 billion for the three months ended March 31, 2025 and 2024, respectively. The net cash used in investing activities is primarily attributable to purchases of government-backed securities.
Previous report
Net cash provided by financing activities were approximately $0.1 billion and $5.2 billion for the three months ended March 31, 2025 and 2024, respectively. The net cash provided by financing activities is primarily attributable to borrowings and proceeds on warehouse facilities, repurchase agreements, and non-qualified mortgage securitizations.
Reworded paragraphs (85)
Previous wording
Management’s discussion and analysis of financial condition and results of operations should be read in conjunction with the unaudited consolidated financial statements and notes thereto, and with Part II, Item 1A., “Risk Factors” of this Report and Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “2024 Form 10-K”).
Current wording
Management’s discussion and analysis of financial condition and results of operations should be read in conjunction with the unaudited consolidated financial statements and notes thereto, and with Part II, Item 1A., “Risk Factors” of this Report, Part II, Item 1A., “Risk Factors” of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “2024 Form 10-K”).
Previous wording
Rithm Capital is a global asset manager focused on real estate, credit and financial services. Rithm Capital is a Delaware corporation that was formed as a limited liability company in September 2011 (commenced operations in December 2011) and, became a publicly traded entity on May 15, 2013. Since June 17, 2022, Rithm Capital has been structured as an internally managed REIT for U.S. federal income tax purposes.
Current wording
Rithm Capital is a global asset manager focused on real estate, credit and financial services. Rithm Capital is a Delaware corporation and currently operates as an internally managed REIT.
Previous wording
We seek to generate long-term value for our investors by using our investment expertise to identify, manage and invest in real estate related and other financial assets, as well as offering broader asset management capabilities, in order to provide investors with attractive risk-adjusted returns. Our investment team is made up of individuals with deep experience in financial services and real estate investing at both the institutional and operating company level. Headquartered in New York City, Rithm Capital has a global presence with offices in London, Hong Kong, Shanghai and Tokyo.
Current wording
We seek to generate long-term value for our investors by using our investment expertise to identify, manage and invest in real estate related and other financial assets, as well as offering broader asset management capabilities in order to provide investors with attractive risk-adjusted returns. Our investment team is made up of individuals with deep experience in financial services and real estate investing at both the institutional and operating company level. Headquartered in New York City, Rithm Capital has a global presence with global offices in London, Hong Kong, Abu Dhabi and Tokyo.
Previous wording
Our Asset Management business primarily operates through our wholly-owned subsidiary, Sculptor, as well as through RCM Manager, which manages Rithm Property Trust pursuant to that certain Management Agreement, by and between RCM Manager and Rithm Property Trust, dated as of June 11, 2024 (as amended by the First Amendment to the Management Agreement, dated as of October 18, 2024). Sculptor is a leading global alternative asset manager and provides asset management services and investment products across credit, real estate and multi-strategy platforms through commingled funds, separate accounts and other alternative investment vehicles. For more information about our investment guidelines, see Part I, Item 1. Business, “Investment Guidelines” of the 2024 Form 10-K.
Current wording
Our Asset Management business primarily operates through our wholly-owned subsidiary, Sculptor, as well as through RCM Manager, which manages Rithm Property Trust pursuant to that certain Management Agreement, by and between RCM Manager and Rithm Property Trust, dated as of June 11, 2024 (as amended by the First Amendment to the Management Agreement, dated as of October 18, 2024) and Rithm Capital Advisors LLC (“RCA”), which serves as an investment adviser to funds and managed accounts. Sculptor is a leading global alternative asset manager and provides asset management services and investment products across credit, real estate and multi-strategy platforms through commingled funds, separate accounts and other alternative investment vehicles. For more information about our investment guidelines, see Part I, Item 1. Business, “Investment Guidelines” of the 2024 Form 10-K.
Previous wording
In executing our strategy, from time to time, we explore and will continue to explore various opportunities to create value for our shareholders, which may include acquisitions and dispositions of assets, financing transactions (including equity or debt offerings by one or more of our subsidiaries), business combinations, a change in our tax status, spin-off transactions or other similar transactions. Any such transaction is subject to market and other conditions and there can be no assurances as to the timing of any such transaction or that a transaction will be completed at all.
Current wording
In executing our strategy, from time to time, we explore, and will continue to explore, various opportunities to create value for our shareholders, which may include acquisitions and dispositions of assets, financing transactions (including equity or debt offerings by one or more of our subsidiaries), business combinations, a change in our tax status, spin-off transactions or other similar transactions. Among other opportunities, we believe there are additional growth opportunities in the direct lending, insurance, private equity and infrastructure spaces. Each of the potential transactions described above is subject to market and other conditions and there can be no assurances as to the timing of any such transaction or that a transaction will be completed at all.
Previous wording
As of March 31, 2025, we had approximately $45.3 billion in total assets and approximately $34.8 billion in assets under management (“AUM”). We conduct our business through the following segments: Origination and Servicing, Investment Portfolio, Residential Transitional Lending and Asset Management.
Current wording
As of June 30, 2025, we had approximately $44.3 billion in total assets and approximately $36 billion in assets under management (“AUM”). We conduct our business through the following segments: Origination and Servicing, Investment Portfolio, Residential Transitional Lending and Asset Management.
Previous wording
(A)The change in book value per common share from December 31, 2024 to March 31, 2025 is attributable to the net impact of (i) net income attributable to common stockholders of $36.5 million and (ii) a dividend of $132.5 million for the three months ended March 31, 2025. Net income attributable to common stockholders for the three months ended March 31, 2025 was adversely impacted by a non-cash decrease in the fair value of MSRs, net of hedge and tax.
Current wording
(A)The change in book value per common share from December 31, 2024 to March 31, 2025 was attributable to the net impact of (i) net income attributable to common stockholders of $36.5 million and (ii) a dividend of $132.5 million for the three months ended March 31, 2025. Net income attributable to common stockholders for the three months ended March 31, 2025 was adversely impacted by a non-cash decrease in the fair value of MSRs, net of hedge and tax.
Previous wording
The U.S. economy contracted during the first quarter of 2025 as real gross domestic product (“GDP”) fell an annualized 0.3% due to a surge in imports at the start of the year ahead of the imposition of tariffs. Longer-term Treasury yields fell during the first quarter, primarily due to lower real yields from Treasury Inflation Protected Securities (“TIPS”). The unemployment rate increased slightly to 4.2% in March 2025 from 4.1% in December 2024. In addition to the low unemployment rate, other signs of labor market stability during the first quarter included solid payroll growth, continued low levels of claims for unemployment benefits and an only modestly lower ratio of job openings to unemployed job seekers. The outlook for the economy is more uncertain than usual given changes in policies related to global trade.
Current wording
Real gross domestic product (“GDP”) rose an annualized 3.0% in the second quarter of 2025 largely due to a decline in imports that added 5.2% points to the change in real GDP. This drop in imports followed an increase in the first quarter of 2025 that was the result of the front running of tariffs. Longer-term Treasury yields were relatively unchanged during the second quarter of 2025, as an increase in real yields from Treasury Inflation Protected Securities (“TIPS”) was offset by a decline in the implied inflation breakeven. The unemployment rate fell slightly with overall labor market stability during the second quarter of 2025, including solid employment growth, continued low levels of claims for unemployment benefits and a modestly higher ratio of job openings to unemployed job seekers. Though fiscal policy uncertainty has been reduced by the passage of the One Big Beautiful Bill Act in early July 2025, the outlook for the economy remains uncertain given shifting policies related to global trade.
Previous wording
Progress towards lower inflation resumed in the first quarter of 2025. The 12-month increase in the overall Consumer Price Index (“CPI”) was 2.4% in March 2025 versus 2.9% in December 2024, while core CPI price inflation (excluding food and energy prices) for March 2025 was at 2.8%, lower than the 3.2% core CPI inflation rate reported for December 2024. The moderation in CPI inflation was driven by a decline in energy prices and slower gains in services prices, including shelter.
Current wording
Inflation picked up in the second quarter of 2025, with the 12-month increase in the overall Consumer Price Index (“CPI”) rising to 2.7% in June 2025 from 2.4% in March 2025. Core CPI price inflation (excluding food and energy prices) rose slightly to 2.9% in June 2025 from 2.8% in March 2025. The faster gains in CPI prices were driven by higher energy and other goods prices and slower disinflation in services prices.
Previous wording
The nominal 10-year Treasury yield fell to 4.23% at the end of March 2025 from 4.58% in December 2024. Most of this decline was due to lower real yields from TIPS, which dropped to 1.85% in March 2025 from 2.24% in December 2024. The 10-year breakeven inflation rate was 2.38% in March 2025 versus 2.34% in December 2024.
Current wording
The nominal 10-year Treasury yield was relatively unchanged at 4.24% at the end of June 2025 versus 4.23% at the end of March 2025. The real yields on 10-year TIPS rose to 1.95% in June 2025 from 1.85% in March 2025, whereas the 10-year breakeven inflation rate was 2.29% in June 2025, a decline from 2.38% in March 2025.
Previous wording
Average payroll growth rose an average of 152,000 jobs per month in the first quarter of 2025 versus an average of 168,000 jobs per month in 2024. The unemployment rate remained relatively unchanged since December 2024 at 4.2% in March 2025. Judged by the ratio of job openings to unemployed job seekers, which fell to 1.07 in March 2025 from 1.10 in December 2024, the labor market loosened modestly during the first quarter. Also, year-over-year growth in average hourly earnings was 3.8% in March 2025, easing from the 4.0% wage rate in December 2024.
Current wording
Nonfarm payrolls rose an average of 150,000 jobs per month in the second quarter of 2025 versus an average of 111,000 jobs per month in the first quarter of 2025. The unemployment rate decreased slightly to 4.1% in June 2025 from 4.2% in March 2025. Based upon the ratio of job openings to unemployed job seekers, which rose to 1.06 in June 2025 from 1.02 in March 2025, the labor market did not loosen further during the second quarter of 2025. Nonetheless, year-over-year growth in average hourly earnings was 3.7% in June 2025, slowing from the 3.9% wage rate growth reported for March 2025.
Previous wording
Total home sales (new and existing) averaged 4.81 million units in the first quarter of 2025, only modestly lower than the average of 4.84 million in the fourth quarter of 2024. Nonetheless, home sales remain at a low level with total sales in a range of 4.5 million and 5.1 million since the beginning of 2023. Home price growth moderated further with the 12-month increase in the median resale price of an existing home at just 2.7% in March 2025, which compares to 5.8% in December 2024.
Current wording
Total home sales (new and existing) averaged 4.64 million units in the second quarter of 2025, 2.9% lower than the average of 4.78 million in the first quarter of 2025. Home sales remain at a low level with total sales in a range of 4.5 million and 5.1 million since the beginning of 2023. Home price growth moderated further with the 12-month increase in the median resale price of an existing home at 2.0% in June 2025, which compares to 2.6% in March 2025. The 30-year fixed mortgage rate rose modestly to 6.77% at the end of the second quarter of 2025 from 6.65% at the end of the first quarter of 2025.
Previous wording
The economic conditions discussed above influence our investment strategy and results. Following 100 basis points of rate cuts in the last four months of 2024, the Federal Open Market Committee (“FOMC”) has indicated that monetary policy is well positioned to wait for greater clarity on the effects of the trade, immigration, fiscal and regulatory policies of the new administration before making any further adjustments. The 30-year fixed mortgage rate fell to 6.65% at the end of the first quarter of 2025 from 6.85% at the end of 2024.
Current wording
The economic conditions discussed above influence our investment strategy and results. Following 100 basis points of rate cuts in the final four months of 2024, the majority of the Federal Open Market Committee (“FOMC”) participants continue to wait for greater clarity with respect to the effects of government policies before making any further adjustments to the federal funds rate. The FOMC’s June 2025 Summary of Economic Projections contained a median forecast of two quarter-point rate cuts before the end of 2025.
Previous wording
We believe the estimates and assumptions underlying our consolidated financial statements are reasonable and supportable based on the information available as of March 31, 2025; however, uncertainty related to market volatility, the path of the federal funds rate, various regional conflicts and trade and fiscal policies makes any estimates and assumptions as of March 31, 2025, inherently less certain than they would be absent the current environment. Actual results may materially differ from those estimates. Market volatility, inflationary pressures and government policies (monetary, fiscal, trade and immigration) and their impact on the current financial, economic and capital markets environment, and future developments in these and other areas present uncertainty and risk with respect to our financial condition, results of operations, liquidity and ability to pay distributions.
Current wording
We believe the estimates and assumptions underlying our consolidated financial statements are reasonable and supportable based on the information available as of June 30, 2025; however, uncertainty related to market volatility, the path of the federal funds rate, various regional conflicts and global trade and fiscal policies makes any estimates and assumptions as of June 30, 2025, inherently less certain than they would be absent the current environment. Actual results may materially differ from those estimates. Market volatility, inflationary pressures and government policies (monetary, fiscal, trade and immigration) and their impact on the current financial, economic and capital markets environment, and future developments in these and other areas present uncertainty and risk with respect to our financial condition, results of operations, liquidity and ability to pay distributions.
Previous wording
We have a multi-channel residential lending platform, offering purchase and refinance loan products. We believe that our multi-channel origination mortgage platform provides us with a competitive advantage and enables us to provide borrowers with various products to ultimately originate both purchase and refinance loans across different market conditions. As further described below, we originate loans through our Retail channel, offer purchase, refinance and closed-end second opportunities to eligible new and existing servicing customers through our Direct to Consumer channel and purchase originated loans through our Wholesale and Correspondent channels. Our loan offerings include residential mortgage loans conforming to the underwriting standards of the GSEs and Ginnie Mae, government-insured residential mortgage loans which are insured by the Federal Housing Administration, Department of Veteran’s Affairs and U.S. Department of Agriculture, Non-Agency securities and non-qualified residential mortgage (“Non-QM”) loans through our SMART Loan Series. Our Non-QM loan products provide a variety of options for highly qualified borrowers who fall outside the specific requirements of Agency residential mortgage loans. We additionally originate closed-end second lien home equity loans to our existing consumers to access the equity in their home without the need to pay off their existing first lien mortgage. Newrez serviced over 3.7 million customers with an aggregated UPB of approximately $786.6 billion and $778.4 billion as of March 31, 2025 and December 31, 2024, respectively. Our origination business funded $11.8 billion and $17.3 billion of mortgages for the three months ended March 31, 2025 and December 31, 2024, respectively.
Current wording
We have a multi-channel residential lending platform, offering purchase and refinance loan products. We believe that our multi-channel origination mortgage platform provides us with a competitive advantage and enables us to provide borrowers with various products to ultimately originate both purchase and refinance loans across different market conditions. As further described below, we originate loans through our Retail channel, offer purchase, refinance and closed-end second opportunities to eligible new and existing servicing customers through our Direct to Consumer channel and purchase originated loans through our Wholesale and Correspondent channels. Our loan offerings include residential mortgage loans conforming to the underwriting standards of the GSEs and Ginnie Mae, government-insured residential mortgage loans, which are insured by the Federal Housing Administration, Department of Veterans Affairs and U.S. Department of Agriculture, Non-Agency securities and non-qualified residential mortgage (“Non-QM”) loans through our SMART Loan Series. Our Non-QM loan products provide a variety of options for highly qualified borrowers who fall outside the specific requirements of Agency residential mortgage loans. We additionally originate closed-end second lien home equity loans to our existing consumers to access the equity in their home without the need to pay off their existing first lien mortgage. Newrez serviced over 3.8 million customers with an aggregated unpaid principal balance (“UPB”) of approximately $807.3 billion, $786.6 billion and $741.6 billion as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively. Our origination business funded $16.3 billion and $11.8 billion of mortgages for the three months ended June 30, 2025 and March 31, 2025, respectively, and $28.1 billion and $25.4 billion for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
We generally service all of the loans that we originate, which provides us connectivity with our borrowers throughout the lifecycle of their loan. Our servicing business operates through our performing and special servicing divisions. The performing loan servicing division services performing Agency and government-insured loans. Our special servicing division services delinquent government-insured, Agency and Non-Agency loans on behalf of the owners of the underlying mortgage loans. The special servicing division also includes third-party serviced loans on behalf of unaffiliated investors. We are highly experienced in loan servicing, including loan modifications, and seek to help borrowers avoid foreclosure. As of March 31, 2025, the performing loan servicing division serviced $516.8 billion unpaid principal balance (“UPB”) of loans, our special servicing division serviced $269.7 billion UPB of loans and third parties serviced $58.3 billion UPB of loans, for a total servicing portfolio of $844.9 billion UPB, an increase of $1.0 billion from December 31, 2024. The increase was primarily attributable to new client acquisition and loan production, partially offset by scheduled and voluntary prepayment loan activity.
Current wording
We generally service all of the loans that we originate, which provides us connectivity with our borrowers throughout the lifecycle of their loans. Our servicing business operates through our performing and special servicing divisions. The performing loan servicing division services performing Agency and government-insured loans. Our special servicing division services delinquent government-insured, Agency and Non-Agency loans on behalf of the owners of the underlying mortgage loans. The special servicing division also includes third-party serviced loans on behalf of unaffiliated investors. We are highly experienced in loan servicing, including loan modifications, and seek to help borrowers avoid foreclosure. As of June 30, 2025, the performing loan servicing division serviced $526.1 billion UPB of loans, our special servicing division serviced $281.2 billion UPB of loans and third parties serviced $56.9 billion UPB of loans, for a total servicing portfolio of $864.2 billion UPB, an increase of $19.3 billion from March 31, 2025. The increase was primarily attributable to new client acquisition and loan production, partially offset by scheduled and voluntary prepayment loan activity.
Previous wording
(B)Includes loan origination fees of$197.6 million and$226.5 million for the three months ended March 31, 2025 and December 31, 2024, respectively.
Current wording
(B)Includes loan origination fees of$248.3 million and$197.6 million for the three months ended June 30, 2025 and March 31, 2025, respectively, and $445.9 million and $411.5 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
For the three months ended March 31, 2025, funded loan origination volume was $11.8 billion, down from $17.3 billion in the prior quarter. Gain on sale margin for the three months ended March 31, 2025 was 1.23%, 9 bps higher than 1.14% for the prior quarter. The higher gain on sale margin for the three months ended March 31, 2025 was primarily due to a lower Correspondent channel mix (refer to the tables above).
Current wording
For the six months ended June 30, 2025, funded loan origination volume was $28.1 billion, up from $25.4 billion in the six months ended June 30, 2024. Gain on sale margin for the six months ended June 30, 2025 was 1.12%, 3 bps higher than 1.09% for the six months ended June 30, 2024. The higher gain on sale margin for the six months ended June 30, 2025 was primarily due to improved margins in the Correspondent channel (refer to the tables above).
Previous wording
(A)Includes other fees earned from third parties of $22.0 million and $21.1 million for the three months ended March 31, 2025 and December 31, 2024, respectively.
Current wording
(A)Includes other fees earned from third parties of $23.7 million and $22.0 million for the three months ended June 30, 2025 and March 31, 2025, respectively, and $45.7 million and $27.7 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
Our servicing business includes owned MSRs primarily serviced by Newrez. As of March 31, 2025, 90.1% of the underlying UPB of mortgages related to owned MSRs is serviced by Newrez. In addition to MSRs serviced by Newrez, we contract with PHH and Valon to perform the related servicing duties on the residential mortgage loans underlying a certain portion of our MSRs and MSR financing receivables with an aggregate UPB of $58.3 billion, representing 9.9% of our servicing portfolio as of March 31, 2025.
Current wording
Our servicing business includes owned MSRs primarily serviced by Newrez. As of June 30, 2025, 90.4% of the underlying UPB of mortgages related to owned MSRs is serviced by Newrez. In addition to MSRs serviced by Newrez, we contract with PHH and Valon to perform the related servicing duties on the residential mortgage loans underlying a certain portion of our MSRs and MSR financing receivables with an aggregate UPB of $56.9 billion, representing 9.6% of our servicing portfolio as of June 30, 2025.
Previous wording
(A)Includes GSE and Non-Agency MSRs of $23.2 billion and $35.1 billion underlying UPB, respectively, serviced by third-party subservicers.
Current wording
(A)Includes GSE and Non-Agency MSRs of $22.6 billion and $34.2 billion underlying UPB, respectively, serviced by third-party subservicers.
Previous wording
(A)Includes GSE and Non-Agency MSRs of $23.2 billion and $35.1 billion underlying UPB, respectively, serviced by third-party subservicers.
Current wording
(A)Includes GSE and Non-Agency MSRs of $22.6 billion and $34.2 billion underlying UPB, respectively, serviced by third-party subservicers.
Previous wording
The following table summarizes our Agency RMBS and U.S. Treasury securities portfolio as of March 31, 2025 (dollars in thousands):
Current wording
The following table summarizes our Agency RMBS and U.S. Treasury securities portfolio as of and for the six months ended June 30, 2025 (dollars in thousands):
Previous wording
The following table summarizes the net interest spread of our government and government-backed securities portfolio for the three months ended March 31, 2025:
Current wording
The following table summarizes the net interest spread of our government and government-backed securities portfolio for the six months ended June 30, 2025:
Previous wording
(A)The government and government-backed securities portfolio consists of 100% fixed-rate securities (accounted for on an amortized cost basis).
Current wording
(A)The government and government-backed securities portfolio consists of 100% fixed-rate securities.
Previous wording
We largely invest in government and government-backed securities (U.S. Treasury securities and Agency RMBS) as a hedge to our MSR portfolio and to provide additional qualifying assets and income for the purposes of meeting the REIT requirements. Our government and government-backed securities portfolio was $11.0 billion as of March 31, 2025. We finance investments in these securities with short-term borrowings under master uncommitted repurchase agreements. These borrowings generally bear interest rates offered by the counterparty for the term of the proposed repurchase transaction (e.g., 30 days, 60 days, etc.) of a specified margin over SOFR. As of March 31, 2025 and December 31, 2024, the Company pledged Agency RMBS and
Current wording
We largely invest in government and government-backed securities (U.S. Treasury securities and Agency RMBS) as a hedge to our MSR portfolio and to provide additional qualifying assets and income for the purposes of meeting the REIT requirements. Our government and government-backed securities portfolio was $8.9 billion as of June 30, 2025. We finance investments in these securities with short-term borrowings under master uncommitted repurchase agreements. These borrowings generally bear interest rates offered by the counterparty for the term of the proposed repurchase transaction (e.g., 30 days, 60 days, etc.) of a specified margin over SOFR. As of June 30, 2025 and December 31, 2024, the Company pledged Agency RMBS and Treasury securities and associated margin deposits with a carrying value of approximately $9.0 billion and $10.1 billion, respectively, as collateral for borrowings under repurchase agreements. We expect to continue to finance our government-backed securities acquisitions with repurchase agreement financing. See Note 18 to our consolidated financial statements for further information regarding financing of our government-backed securities, including a summary of activity related to financing from December 31, 2024 to June 30, 2025.
Previous wording
(B)Represents Excess MSRs serviced by Mr. Cooper. We also invested in related servicer advance investments, including the base fee component of the related MSR (Note 14) on $13.0 billion UPB underlying these Excess MSRs.
Current wording
(B)Represents Excess MSRs serviced by Mr. Cooper. We also invested in related servicer advance investments, including the base fee component of the related MSR (Note 14) on $12.6 billion UPB underlying these Excess MSRs.
Previous wording
The following summarizes additional information regarding our servicer advance investments and related financing, as of and for the three months ended March 31, 2025 (dollars in thousands):
Current wording
The following summarizes additional information regarding our servicer advance investments and related financing, as of and for the six months ended June 30, 2025 (dollars in thousands):
Previous wording
Within our Non-Agency securities portfolio, we retain and own risk retention bonds from our securitizations that we do not consolidate in accordance with risk retention regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act, including the rules promulgated thereunder. We also retain and own bonds from our consolidated private label mortgage securitizations which we eliminate in consolidation. The equity value is reflected in assets of consolidated CFEs and liabilities of consolidated CFEs on the consolidated balance sheets and is excluded from the tables below. As of March 31, 2025, 88.4% of our Non-Agency securities portfolio was related to bonds retained pursuant to required risk retention regulations.
Current wording
Within our Non-Agency securities portfolio, we retain and own risk retention bonds from our securitizations that we do not consolidate in accordance with risk retention regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act, including the rules promulgated thereunder. We also retain and own bonds from our consolidated private label mortgage securitizations which we eliminate in consolidation. The equity value is reflected in assets of consolidated CFEs and liabilities of consolidated CFEs on the consolidated balance sheets and is excluded from the tables below. As of June 30, 2025, 77.9% of our Non-Agency securities portfolio was related to bonds retained pursuant to required risk retention regulations.
Previous wording
The following table summarizes our Non-Agency securities portfolio as of March 31, 2025 (dollars in thousands):
Current wording
The following table summarizes our Non-Agency securities portfolio as of and for the six months ended June 30, 2025 (dollars in thousands):
Previous wording
The following tables summarize the characteristics of our Non-Agency securities portfolio and of the collateral underlying our Non-Agency securities as of March 31, 2025 (dollars in thousands):
Current wording
The following table summarizes the characteristics of our Non-Agency securities portfolio and of the collateral underlying our Non-Agency securities as of June 30, 2025 (dollars in thousands):
Previous wording
(A)Excludes $64.2 million carrying value of Non-Agency securities that are backed by assets other than residential mortgages.
Current wording
(A)Excludes $149.9 million carrying value of Non-Agency securities that are backed by assets other than residential mortgages.
Previous wording
(B)Excludes interest only, residual and other bonds with a carrying value of $193.7 million for which no coupon payment is expected.
Current wording
(B)Excludes interest only, residual and other bonds with a carrying value of $188.2 million for which no coupon payment is expected.
Previous wording
(E)The percentage of underlying loans that are 90+ days delinquent, or in foreclosure or considered REO.
Current wording
(E)The percentage of underlying loans that are 90+ days delinquent, or in foreclosure or considered real estate owned (“REO”).
Previous wording
The following table summarizes the net interest spread of our Non-Agency securities portfolio for the three months ended March 31, 2025:
Current wording
The following table summarizes the net interest spread of our Non-Agency securities portfolio for the six months ended June 30, 2025:
Previous wording
(A)The Non-Agency securities portfolio consists of 18.9% floating rate securities and 81.1% fixed-rate securities (accounted for on an amortized cost basis).
Current wording
(A)The Non-Agency securities portfolio consists of 18.5% floating rate securities and 81.5% fixed-rate securities (accounted for on an amortized cost basis).
Previous wording
We finance our investments in Non-Agency securities with short-term borrowings under master uncommitted repurchase agreements. These borrowings generally bear interest rates offered by the counterparty for the term of the proposed repurchase transaction (e.g., 30 days, 60 days, etc.) of a specified margin over SOFR. As of March 31, 2025 and December 31, 2024, the Company pledged Non-Agency securities, including securities retained through consolidated securitizations, with a carrying value of approximately $1.2 billion and $1.1 billion, respectively, as collateral for borrowings under repurchase agreements. A portion of collateral for borrowings under repurchase agreements is subject to daily mark-to-market fluctuations and margin calls. The remaining collateral is not subject to daily margin calls unless the collateral coverage percentage, a quotient expressed as a percentage equal to the current carrying value of outstanding debt divided by the market value of the underlying collateral, becomes greater than or equal to a collateral trigger. The difference between the collateral coverage percentage and the collateral trigger is referred to as a “margin holiday.” See Note 18 to our consolidated financial statements for further information regarding financing of our Non-Agency securities, including a summary of activity related to financing from December 31, 2024 to March 31, 2025.
Current wording
We finance our investments in Non-Agency securities with short-term borrowings under master uncommitted repurchase agreements. These borrowings generally bear interest rates offered by the counterparty for the term of the proposed repurchase transaction (e.g., 30 days, 60 days, etc.) of a specified margin over SOFR. As of June 30, 2025 and December 31, 2024, the Company pledged Non-Agency securities, including securities retained through consolidated securitizations, with a carrying value of approximately $1.3 billion and $1.1 billion, respectively, as collateral for borrowings under repurchase agreements. A portion of collateral for borrowings under repurchase agreements is subject to daily mark-to-market fluctuations and margin calls. The remaining collateral is not subject to daily margin calls unless the collateral coverage percentage, a quotient expressed as a percentage equal to the current carrying value of outstanding debt divided by the market value of the underlying collateral, becomes greater than or equal to a collateral trigger. The difference between the collateral coverage percentage and the collateral trigger is referred to as a “margin holiday.” See Note 18 to our consolidated financial statements for further information regarding financing of our Non-Agency securities, including a summary of activity related to financing from December 31, 2024 to June 30, 2025.
Previous wording
As of March 31, 2025, we had approximately $3.5 billion outstanding face amount of loans included in residential mortgage loans, HFS and residential mortgage loans, HFI, at fair value on the consolidated balance sheets (see below). These investments were financed with secured financing agreements with an aggregate face amount of approximately $3.1 billion. We acquired these loans through open market purchases, loan origination through Newrez, bulk acquisitions and the exercise of call rights.
Current wording
As of June 30, 2025, we had approximately $4.5 billion outstanding face amount of loans included in residential mortgage loans, HFS and residential mortgage loans, HFI, at fair value on the consolidated balance sheets (see below). These investments were financed with secured financing agreements with an aggregate face amount of approximately $4.0 billion. We acquired these loans through open market purchases, loan origination through Newrez, bulk acquisitions and the exercise of call rights.
Previous wording
(E)Includes $226.3 million and $273.8 million UPB of Ginnie Mae early buyout options performing and non-performing loans, respectively, on accrual status as contractual cash flows are guaranteed by the FHA.
Current wording
(E)Includes $162.3 million and $235.1 million UPB of Ginnie Mae early buyout options performing and non-performing loans, respectively, on accrual status as contractual cash flows are guaranteed by the FHA.
Previous wording
We finance a significant portion of our investments in residential mortgage loans with borrowings under repurchase agreements. These recourse borrowings generally bear variable interest rates offered by the counterparty for the term of the proposed repurchase transaction, generally less than one year, of a specified margin over SOFR. As of March 31, 2025 and December 31, 2024, the Company pledged residential mortgage loans with a carrying value of approximately $3.5 billion and $4.7 billion, respectively, as collateral for borrowings under repurchase agreements. A portion of collateral for borrowings under repurchase agreements is subject to daily mark-to-market fluctuations and margin calls. A portion of collateral for borrowings under repurchase agreements is not subject to daily margin calls unless the collateral coverage percentage, a quotient expressed as a percentage equal to the current carrying value of outstanding debt divided by the market value of the underlying collateral, becomes greater than or equal to a collateral trigger. The difference between the collateral coverage percentage and the collateral trigger is referred to as a “margin holiday.” See Note 18 to our consolidated financial statements for further information regarding financing of our residential mortgage loans, including a summary of activity related to financing from December 31, 2024 to March 31, 2025.
Current wording
We finance a significant portion of our investments in residential mortgage loans with borrowings under repurchase agreements. These recourse borrowings generally bear variable interest rates offered by the counterparty for the term of the proposed repurchase transaction, generally less than one year, of a specified margin over SOFR. As of June 30, 2025 and December 31, 2024, the Company pledged residential mortgage loans with a carrying value of approximately $4.5 billion and $4.7 billion, respectively, as collateral for borrowings under repurchase agreements. A portion of collateral for borrowings under repurchase agreements is subject to daily mark-to-market fluctuations and margin calls. A portion of collateral for borrowings under repurchase agreements is not subject to daily margin calls unless the collateral coverage percentage, a quotient expressed as a percentage equal to the current carrying value of outstanding debt divided by the market value of the underlying collateral, becomes greater than or equal to a collateral trigger. The difference between the collateral coverage percentage and the collateral trigger is referred to as a “margin holiday.” See Note 18 to our consolidated financial statements for further information regarding financing of our residential mortgage loans, including a summary of activity related to financing from December 31, 2024 to June 30, 2025.
Showing the first 40 of 85 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
On June 20, 2025, the Company issued $500.0 million aggregate principal amount of its senior unsecured notes due July 15, 2030 (the “2030 Senior Notes”), with interest payable semi-annually in arrears on each of January 15th and July 15th, commencing on January 15, 2026. Net proceeds from the issuance of the 2030 Senior Notes were approximately $495.0 million, net of commissions and estimated offering expenses payable by the Company. The 2030 Senior Notes mature on July 15, 2030 and are redeemable at any time from time to time on or after July 15, 2027, at prices ranging from 104% to 100% of the principal amount.
Current report — wording carried from elsewhere
On March 19, 2024, the Company issued $775.0 million aggregate principal amount of its senior unsecured notes due April 1, 2029 (the “2029 Senior Notes”), with interest payable semi-annually in arrears on each of April 1st and October 1st, commencing on October 1, 2024. Net proceeds from the issuance of the 2029 Senior Notes were approximately $759.0 million, net of discount and commissions and estimated offering expenses payable by the Company. The 2029 Senior Notes mature on April 1, 2029 and are redeemable at any time and from time to time on or after April 1, 2026, at prices ranging from 104% to 100% of the principal amount.
Current report — wording carried from elsewhere
The Indenture, dated March 19, 2024, pursuant to which the 2029 Senior Notes were issued (the “2029 Notes Indenture”) and the Indenture, dated June 20, 2025, pursuant to which the 2030 Senior Notes were issued (the “2030 Notes Indenture”), each contain a requirement that the Company maintain Total Unencumbered Assets (as defined in each of the 2030 Notes Indenture and the 2029 Notes Indenture) of not less than 120% of the aggregate principal amount of the outstanding unsecured debt of the Company. For more information regarding our indebtedness, refer to Note 18 of the consolidated financial statements.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Treasury securities and associated margin deposits with a carrying value of approximately $11.1 billion and $10.1 billion, respectively, as collateral for borrowings under repurchase agreements. We expect to continue to finance our government-backed securities acquisitions with repurchase agreement financing. See Note 18 to our consolidated financial statements for further information regarding financing of our government-backed securities, including a summary of activity related to financing from December 31, 2024 to March 31, 2025.
Previous report — wording carried elsewhere
SpringCastle (the “SpringCastle loans” or “SpringCastle”) held by Rithm Capital, through the Consumer Loan Companies, as of March 31, 2025 (dollars in thousands):
Previous report — wording carried elsewhere
See Note 2 to our consolidated financial statements.
Previous report — wording carried elsewhere
Other revenues decreased $7.6 million due to lower property inspection and maintenance revenue at Guardian.
Previous report — wording carried elsewhere
General and administrative expenses consists of the following: