Rithm Capital Corp.
For the period ended Sep 30, 2025. Filed Oct 31, 2025.
View on SEC.govAbout this filing
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.
Sep 30, 2025 · Filed Oct 31, 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 2025-06-30; filed 2025-08-01.
0001556593-25-000024
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0001556593-25-000033
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 311 previous paragraphs and 318 current paragraphs.
207 unchanged; 93 reworded; 17 added; 10 removed; 1 previous and 1 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 (17)
Current report
The economy has shown resilience year-to-date despite elevated policy uncertainty. The evaluation of economic trends has been clouded since the September data cycle began by the shutdown in nonessential government spending. Although core personal consumption expenditure inflation was 2.9% in August 2025, the Federal Open Market Committee cut interest rates in September 2025, lowering the federal funds target by a quarter percentage point to support the employment side of their dual mandate. The median projections of committee participants point to two more rate cuts in 2025. Longer-term Treasury yields declined slightly during the third quarter of 2025, as an increase in the implied inflation breakeven was more than offset by a decline in real yields as measured by Treasury Inflation Protected Securities (“TIPS”). The unemployment rate increased modestly by 0.2% points from June to August 2025, reflecting low layoffs but also very slow hiring. The growth outlook for the economy is cautiously optimistic, but risks remain due to uncertainty around trade and immigration policy. Equity markets advanced, as the S&P 500 composite climbed 7.8% during the third quarter, posting its best third quarter performance since 2020.
Current report
(A)Real GDP data as of September 30, 2025 was not released as of the filing date due to the federal government shutdown.
Current report
(A)Unemployment rate data as of September 30, 2025 was not released as of the filing date due to the federal government shutdown.
Current report
(A)The Company's consolidated balance sheets include assets and liabilities of consolidated VIEs and certain other consolidated VIEs, including funds and collateralized financing entities (“CFEs”) that are presented separately within assets and liabilities of consolidated entities. VIE assets can only be used to settle obligations and liabilities of the VIEs. VIE creditors do not have recourse to Rithm Capital Corp.
Current report
The following table summarizes our Non-Agency securities portfolio as of and for the nine months ended September 30, 2025 (dollars in thousands):
Current report
In the third quarter 2025, we announced a strategic investment partnership with a large institutional investor, which we believe marks the latest milestone in our ongoing strategy to cultivate long-term, value driven asset management collaborations. As part of the agreement, the partnership will fund the near-term acquisition of up to $500 million of residential transition loans, with the potential to acquire up to $1.5 billion. The parties formed a dedicated investment partnership to fund the acquisition of the loans, which will be managed by RCA. The loans will be serviced by Genesis. We believe this partnership underscores our efforts to grow our asset management platform. RCA expects to begin managing additional funds in the fourth quarter of 2025.
Current report
Servicing revenue, net decreased $104.9 million, primarily driven by a decrease in the value of our MSRs driven by changes in interest rates and higher prepayment speeds, partially offset by a decrease in discount rates. The unrealized loss on our MSRs was partially offset by net gains on MSR economic hedges.
Current report
Other revenues increased $1.6 million, as property inspection and maintenance volume at Guardian remained comparable quarter-over-quarter.
Current report
Interest expense and warehouse line fees decreased $15.2 million, primarily driven by a decrease in average outstanding borrowing on servicing related assets, as the Company utilized proceeds from the ATM program and preferred stock issuance to pay down MSR-related financing facilities, and government and government-backed securities, resulting from net securities sales, during the three months ended September 30, 2025. The decrease was partially offset by (i) an increased borrowing on a growing portfolio of residential mortgage and transition loans and (ii) a full quarter of higher interest rate 2030 Senior Notes compared to the 2025 Senior Notes redeemed in the second quarter.
Current report
Overall, general and administrative expenses were comparable quarter-over-quarter. Higher transaction-related legal and professional fees, driven by activity related to the Paramount and Crestline transactions, were partially offset by lower loan servicing costs.
Current report
Compensation and benefits increased 1.6%, as headcount remained relatively flat quarter-over-quarter.
Current report
On September 3, 2025, we entered into a Purchase and Sale Agreement to acquire Crestline, an alternative asset manager, and certain of its affiliates (such acquisition, the “Crestline Acquisition”) for an upfront cash consideration of $300 million, subject to adjustment for estimated transaction costs and working capital. The Crestline Acquisition is expected to close in the fourth quarter of 2025, subject to customary regulatory approvals and closing conditions.
Current report
On September 17, 2025, we entered into an Agreement and Plan of Merger (the “Original Merger Agreement”) to acquire Paramount, an owner and operator of Class A office properties in New York and San Francisco. On October 8, 2025, we and Paramount entered into Amendment No.1 to the Original Merger Agreement (the “Amendment” and the Original Merger Agreement, as amended by the Amendment, the “Paramount Merger Agreement”). Pursuant to the Paramount Merger
Current report
Agreement, at the effective time, subject to the terms and conditions set forth therein, Rithm Capital will acquire Paramount for a purchase price of approximately $1.6 billion (the “Paramount Acquisition”). The Paramount Acquisition is expected to close in the fourth quarter of 2025, subject to customary closing conditions, including the approval of Paramount’s common stockholders.
Current report
In connection with the pending acquisitions, we have incurred and expect to incur substantial various cash outflows across operating, investing and financing activities. As of September 30, 2025, we have incurred approximately $8.7 million in transaction-related costs, including legal, accounting, and advisory fees, which are included in operating activities in the consolidated statement of cash flows, and we expect to incur substantial additional costs in connection with completing the pending acquisitions. See “Part II., Item 1A. Risk Factors —We will incur substantial transaction fees and costs in connection with the Paramount Acquisition and the Crestline Acquisition. Upon closing, we expect to fund the acquisitions through a combination of cash consideration and financing activities. Any cash consideration to be paid upon closing will be reflected as an investing activity in the period in which the acquisitions are consummated. We also anticipate funding a portion of the purchase price through MSR financing draws and the use of excess cash available on the Paramount balance sheet. These financing activities are expected to provide sufficient liquidity to complete the acquisitions without materially impacting ongoing operations or near-term capital requirements.
Current report
(F)Fixed-rate cumulative redeemable preferred.
Current report
Net cash provided by financing activities was approximately $0.3 billion and $2.8 billion for the nine months ended September 30, 2025 and 2024, respectively. The decrease of net cash provided by financing activities of $2.5 billion was primarily driven by net payment of $0.3 billion on borrowings and repayments of secured financing and warehouse facilities in 2025 compared to net proceeds of $2.8 billion received in 2025.
Removed paragraphs (10)
Previous report
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 report
(A)Includes assets and liabilities of certain consolidated VIEs that meet the definition of collateralized financing entities (“CFEs”). The obligations and liabilities of CFEs may only be satisfied with the assets of the respective consolidated CFEs, and creditors of the CFE do not have recourse to Rithm Capital Corp.
Previous report
The following table summarizes our Non-Agency securities portfolio as of and for the six months ended June 30, 2025 (dollars in thousands):
Previous report
(E)The percentage of underlying loans that are 90+ days delinquent, or in foreclosure or considered real estate owned (“REO”).
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Reworded paragraphs (93)
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, 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”).
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 the Q1 25 10-Q and Part I, Item 1A. “Risk Factors” of the 2024 Form 10-K.
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) 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.
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 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
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.
Current wording
As of September 30, 2025, we had approximately $47.2 billion in total assets and approximately $37.5 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
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.
Current wording
Inflation picked up further during the third quarter of 2025, with the 12-month increase in the overall Consumer Price Index (“CPI”) rising to 3.0% in September 2025 from 2.7% in June 2025. Core CPI price inflation (excluding food and energy prices) also rose to 3.0% in September 2025 from 2.9% in June 2025. The faster gains in CPI prices were driven by both faster increases in core goods prices and core services prices.
Previous 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.
Current wording
The nominal 10-year Treasury yield declined slightly to 4.15% at the end of September 2025 from 4.23% at the end of June 2025. The real yields on 10-year TIPS fell to 1.78% at the end of September 2025 from 1.93% in June 2025, whereas the 10-year breakeven inflation rate rose to 2.37% in September 2025 from 2.28% in June 2025.
Previous 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.
Current wording
Average payroll rose an average of 51,000 jobs per month in the first two months of the third quarter of 2025, which was little changed from an average of 55,000 jobs per month in the second quarter of 2025. The unemployment rate increased to 4.3% in August 2025 from 4.1% in June 2025. Based upon the ratio of job openings to unemployed job seekers, which slipped to 0.98 in August 2025 from 1.05 in June 2025, the labor market did loosen slightly during the first two months of the third quarter of 2025. Nonetheless, year-over-year growth in average hourly earnings was 3.7% in August 2025, unchanged from June 2025.
Previous 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.
Current wording
Total home sales (new and existing) averaged 4.69 million units in the first two months of the third quarter of 2025, which was virtually unchanged from the average of 4.66 million in the second 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 picked up slightly with the 12-month increase in the median resale price of an existing home at 2.0% in August 2025, which compares to 1.4% in June 2025. The 30-year fixed mortgage rate declined somewhat to 6.39% at the end of the third quarter of 2025 from 6.77% at the end of the second 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 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.
Current wording
The economic conditions discussed above influence our investment strategy and results.
Previous wording
The following table summarizes the change in U.S. GDP estimates (annualized rate) according to the U.S. Bureau of Economic Analysis:
Current wording
The following table summarizes the change in U.S. gross domestic product (“GDP”) estimates (annualized rate) according to the U.S. Bureau of Economic Analysis:
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 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.
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. As of September 30, 2025, Newrez serviced approximately 3.8 million customers. The aggregated unpaid principal balance (“UPB”) serviced by Newrez was approximately $822.1 billion, $807.3 billion and $754.7 billion as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively. Our origination business funded $16.4 billion and $16.3 billion of mortgages for the three months ended September 30, 2025 and June 30, 2025, respectively, and $44.5 billion and $41.3 billion for the nine months ended September 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 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.
Current wording
We generally service all of the loans that we originate, which provides us connectivity to 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 September 30, 2025, the performing loan servicing division serviced $530.7 billion UPB of loans, our special servicing division serviced $291.4 billion UPB of loans and third parties serviced $55.5 billion UPB of loans, for a total servicing portfolio of $877.5 billion UPB, an increase of $13.3 billion from June 30, 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$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.
Current wording
(B)Includes loan origination fees of$296.4 million and$248.3 million for the three months ended September 30, 2025 and June 30, 2025, respectively, and $742.3 million and $700.4 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
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 wording
Total gain on originated residential mortgage loans, HFS, net increased $3.3 million to $176.0 million for the three months ended September 30, 2025 compared to the three months ended June 30, 2025. The increase is attributable to anincrease in pull through adjusted lock volume across channels partially offset by lower gain on sale margins. Purchase originations comprised 74.8% of funded loans for the three months ended September 30, 2025, increased compared to 72.8% for the three months ended June 30, 2025, as home sales trend higher.
Previous wording
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 wording
Total gain on originated residential mortgage loans, HFS, net increased $29.4 million to $501.7 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase is attributable toan increase in pull through adjusted lock volume in the Direct to Consumer and Wholesale channels, partially offset by lower gain on sale margins. Refinance originations comprised 26.4% of funded loans for the nine months ended September 30, 2025, higher than 16.4% for the nine months ended September 30, 2024, as interest rates moved lower year-over-year.
Previous wording
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 wording
For the three months ended September 30, 2025, funded loan origination volume was $16.4 billion, up from $16.3 billion in the three months ended June 30, 2025. Gain on sale margin for the three months ended September 30, 2025 was 1.00%, 4 bps lower than 1.04% for the three months ended June 30, 2025. The lower gain on sale margin for the three months ended September 30, 2025 was primarily due to narrower margins in the Direct to Consumer and Wholesale channels (refer to the tables above).
Previous 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).
Current wording
For the nine months ended September 30, 2025, funded loan origination volume was $44.5 billion, up from $41.3 billion in the nine months ended September 30, 2024. Gain on sale margin for the nine months ended September 30, 2025 was 1.07%, 3 bps lower than 1.10% for the nine months ended September 30, 2024. The lower gain on sale margin for the nine months ended September 30, 2025 was primarily due to narrower margins in the Direct to Consumer and Wholesale channels (refer to the tables above).
Previous 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.
Current wording
(A)Includes other fees earned from third parties of $20.0 million and $23.7 million for the three months ended September 30, 2025 and June 30, 2025, respectively, and $65.7 million and $47.1 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous 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.
Current wording
As of September 30, 2025, 90.7% 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 Mortgage Corporation and Valon Mortgage, Inc. 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 $55.5 billion, representing 9.3% of our servicing portfolio as of September 30, 2025.
Previous wording
(A)Includes GSE and Non-Agency MSRs of $22.6 billion and $34.2 billion underlying UPB, respectively, serviced by third-party subservicers.
Current wording
(A)Includes GSE and Non-Agency MSRs of $22.1 billion and $33.4 billion underlying UPB, respectively, serviced by third-party subservicers.
Previous wording
(A)Includes GSE and Non-Agency MSRs of $22.6 billion and $34.2 billion underlying UPB, respectively, serviced by third-party subservicers.
Current wording
(A)Includes GSE and Non-Agency MSRs of $22.1 billion and $33.4 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 and for the six months ended June 30, 2025 (dollars in thousands):
Current wording
The following table summarizes our Agency RMBS and U.S. Treasury securities portfolio as of and for the nine months ended September 30, 2025 (dollars in thousands):
Previous wording
(A)Agency RMBS are held at fair value under the fair value option (“FVO”) election. Treasury securities include $24.8 million of short-term Treasury bills held-to-maturity at amortized cost with the remaining held at fair value under the FVO.
Current wording
(A)Agency RMBS are held at fair value under the fair value option election. Treasury securities include $24.8 million of short-term Treasury bills held-to-maturity at amortized cost.
Previous 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:
Current wording
The following table summarizes the net interest spread of our government and government-backed securities portfolio as of September 30, 2025:
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 $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.
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 $8.6 billion as of September 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 September 30, 2025 and December 31, 2024, the Company pledged Agency RMBS and Treasury securities and associated margin deposits with a carrying value of approximately $8.1 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 September 30, 2025.
Previous wording
Investments in Excess MSRs represent the MSR component exceeding the base fee. Excess MSR assets include Rithm Capital’s ownership of Excess MSRs, and associated recapture agreements, acquired from and serviced by Mr. Cooper Group Inc. (“Mr. Cooper”).
Current wording
Investments in Excess MSRs represent the MSR component exceeding the base fee. Excess MSR assets include Rithm Capital’s ownership of Excess MSRs, and associated recapture agreements, acquired from and serviced by Rocket Companies, Inc., as successor in merger to Mr. Cooper Group Inc. (“Mr. Cooper”).
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 $12.6 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 $12.2 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 six months ended June 30, 2025 (dollars in thousands):
Current wording
The following summarizes additional information regarding our servicer advance investments and related financing, as of and for the nine months ended September 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 June 30, 2025, 77.9% 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 entities and liabilities of consolidated entities on the consolidated balance sheets and is excluded from the tables below. As of September 30, 2025, 77.3% of our Non-Agency securities portfolio was related to bonds retained pursuant to required risk retention regulations.
Previous wording
(B)Fair value which is equal to carrying value for all securities.
Current wording
(B)Carrying value which is equal to the fair value for all securities.
Previous wording
(A)Excludes $149.9 million carrying value of Non-Agency securities that are backed by assets other than residential mortgages.
Current wording
(A)Excludes $150.5 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 $188.2 million for which no coupon payment is expected.
Current wording
(B)Excludes interest only, residual and other bonds with a carrying value of $178.5 million for which no coupon payment is expected.
Previous wording
The following table summarizes the net interest spread of our Non-Agency securities portfolio for the six months ended June 30, 2025:
Current wording
The following table summarizes the net interest spread of our Non-Agency securities portfolio as of September 30, 2025:
Previous 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).
Current wording
(A)The Non-Agency securities portfolio consists of 21.0% floating rate securities and 79.0% fixed-rate securities (accounted for on an amortized cost basis).
Previous wording
We accumulated our residential mortgage loan portfolio through open market purchases, loan originations, bulk acquisitions and the execution of call rights. A majority of the portfolio is serviced by Newrez.
Current wording
We accumulated our residential mortgage loan portfolio through originations, bulk acquisitions and the execution of call rights. Substantially all of the residential mortgage loan portfolio is serviced by Newrez.
Previous 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.
Current wording
As of September 30, 2025, we had approximately $6.2 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 $5.5 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 $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.
Current wording
(E)Includes $236.8 million and $234.1 million UPB of Ginnie Mae early buyout options of 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 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.
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 September 30, 2025 and December 31, 2024, the Company pledged residential mortgage loans with a carrying value of approximately $6.3 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 September 30, 2025.
Previous wording
The table below summarizes the collateral characteristics of the consumer loans, including the portfolio of consumer loans purchased from Goldman Sachs in June 2023 (the “Marcus loans” or “Marcus”) and consumer loans purchased from SpringCastle (the “SpringCastle loans” or “SpringCastle”) held by Rithm Capital, through the Consumer Loan Companies, as of June 30, 2025 (dollars in thousands):
Current wording
The table below summarizes the collateral characteristics of the Company’s consumer loans, including the portfolio of consumer loans purchased from Upgrade, Inc. (the “Upgrade loans” or “Upgrade”), consumer loans purchased from Goldman Sachs in June 2023 (the “Marcus loans” or “Marcus”) and consumer loans purchased from SpringCastle (the “SpringCastle loans” or “SpringCastle”) held by Rithm Capital, through certain limited liability companies (together, the “Consumer Loan Companies”) as of September 30, 2025 (dollars in thousands):
Previous wording
We have financed our investments in the SpringCastle loans with securitized non-recourse long-term notes with a stated maturity date of September 2037. The Marcus loans are financed with long-term notes with a stated maturity date of June 2028. See Note 18 to our consolidated financial statements for further information regarding financing of our consumer loans, including a summary of activity related to financing from December 31, 2024 to June 30, 2025.
Current wording
We have financed our investments in the SpringCastle loans with securitized non-recourse long-term notes with a stated maturity date of September 2037. The Marcus loans are financed with long-term notes with a stated maturity date of June 2028. The Upgrade loans are financed primarily through a secured revolving credit facility that matures in July 2026. See Note 18 to our consolidated financial statements for further information regarding the financing of our consumer loans, including a summary of activity related to financing from December 31, 2024 to September 30, 2025.
Previous wording
We invest in our SFR portfolio by acquiring and maintaining a geographically diversified portfolio of high-quality single-family homes and leasing them to high-quality residents. As of June 30, 2025, our SFR portfolio consists of 3,982 properties with an aggregate carrying value of $1.0 billion, down from 4,049 properties with an aggregate carrying value of $1.0 billion as of December 31, 2024. During the six months ended June 30, 2025, we did not acquire any additional rental properties.
Current wording
We invest in and manage a geographically diversified portfolio of high-quality SFR properties. As of September 30, 2025, our SFR portfolio consists of 3,974 properties with an aggregate carrying value of $1.0 billion, down from 4,049 properties with an aggregate carrying value of $1.0 billion as of December 31, 2024. During the nine months ended September 30, 2025, we did not acquire any additional rental properties.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Asset management revenues decreased $10.1 million, primarily driven by lower incentive income driven by off-cycle crystallization related to certain funds managed by Sculptor.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
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.