Rithm Capital Corp.
For the period ended Sep 30, 2026. Filed Nov 2, 2026.
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, 2026 · Filed Nov 2, 2026
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 2026-06-30; filed 2026-08-04.
0001556593-26-000029
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-02.
0001556593-26-000035
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 356 previous paragraphs and 359 current paragraphs.
239 unchanged; 106 reworded; 14 added; 10 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 52 previous and 52 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 (14)
Current report
Headline inflation increased further during the quarter, primarily reflecting higher energy prices, as West Texas Intermediate crude oil prices rose approximately 30% during the quarter, from $69.50 per barrel at the end of June 2026 to $90.42 per barrel at the end of September 2026. Core Consumer Price Index (“CPI”) was roughly stable.
Current report
(F)Represents the percentage of the total principal balance of the pool that corresponds to loans that are delinquent by 90 or more days.
Current report
As of September 30, 2026, our SFR portfolio consisted of approximately 3,735 properties with an aggregate carrying value of approximately $0.9 billion, of which $0.3 billion were classified as held-for-sale and $0.6 billion were classified as held-for-investment. The properties classified as held for investment did not meet all of the criteria for held for sale classification. We will reclassify applicable properties when those criteria are met, at which point they would be measured at the lower of carrying value or fair value less costs to sell, which could result in the recognition of impairment charges that may be material.
Current report
(A)New York City same store leased occupancy as of December 31, 2025 was 92.8% as originally reported and was recalculated to 91.7% using Elecor’s ownership interests as of September 30, 2026 to reflect the partial sale of an interest in a CRE joint venture.
Current report
(B)Same store leased occupancy as of December 31, 2025 was 86.9% as originally reported and was recalculated to 85.3% using Elecor’s ownership interests as of September 30, 2026 to reflect the partial sale of an interest in a CRE joint venture.
Current report
Same store leased occupancy includes the core properties owned and operated by Elecor in a similar manner throughout both periods, and excludes properties acquired, disposed of, or under development or redevelopment during either period. Leased occupancy for all periods presented is calculated using Elecor’s ownership interests as of September 30, 2026, and prior periods were recalculated to reflect the partial sale of an interest in a CRE joint venture in September 2026.
Current report
Servicing revenue, net was $716.6 million for the three months ended September 30, 2026, an increase of $494.9 million, compared to $221.8 million for the three months ended June 30, 2026. The increase was primarily attributable to a $486.8 million increase in change in fair value of MSRs, net of economic hedges, due to an increase in interest rates and slower prepayment speeds, partially offset by higher discount rates. Servicing and related fee revenue, net decreased approximately $19.3 million, driven by lower servicing fees collected during the three months ended September 30, 2026.
Current report
(A)Includes realized gains on loan sales and related new MSR capitalization, changes in repurchase reserves, changes in fair value of interest rate lock commitments, changes in fair value of residential mortgage loans, HFS and economic hedging gains and losses.
Current report
(B)Includes loan origination fees of$136.8 million and$174.8 million for the three months ended September 30, 2026 and June 30, 2026, respectively, and $520.5 million and $742.3 million for the nine months ended September 30, 2026 and 2025, respectively.
Current report
(C)Represents gain on originated residential mortgage loans, HFS, net related to the origination business within the Origination and Servicing segment (Note 4 and Note 7 to our consolidated financial statements).
Current report
(D)Excludes MSR revenue on recaptured loan volume reported in the servicing segment.
Current report
Other residential-related revenue was $160.9 million for the nine months ended September 30, 2026, a decrease of $7.2 million compared to $168.0 million for the nine months ended September 30, 2025. This decrease was primarily related to (i) increasing retail sales on the SFR portfolio during 2026 and (ii) decreasing property revenues at Guardian.
Current report
Interest expense and warehouse line fees were $480.8 million for the three months ended September 30, 2026, an increase of $16.7 million, compared to $464.1 million for the three months ended June 30, 2026. The increase was primarily attributable to (i) an increase in borrowings on MSR lines, as well as growth of the RTL portfolio, and (ii) higher borrowing costs on our variable rate financing, driven by increase in interest rates.
Current report
Other income, net was $39.2 million for the three months ended September 30, 2026, a decrease of $40.9 million, compared to $80.1 million for the three months ended June 30, 2026. The decrease was primarily attributable to (i) a change from net gains to net losses on real estate and other securities, driven by changes in interest rates, (ii) change from net other gains to net other losses on a certain consolidated fund and (iii) lower gains on consolidated entities during the three months ended September 30, 2026. The decrease was partially offset by (iv) increased gains on derivatives and hedging instruments and (v) gains from sale of interests related to certain commercial properties during the third quarter.
Removed paragraphs (10)
Previous report
Headline inflation increased further during the quarter, primarily reflecting higher energy prices, even as West Texas Intermediate crude oil prices, which had been up as much as 101% following the outbreak of the conflict with Iran, eased to a gain of approximately 70% by the end of the second quarter as ceasefire efforts progressed, though that truce showed signs of strain by quarter-end. Core inflation measures were roughly stable. The unemployment rate declined modestly from 4.3% in March 2026 to 4.2% in June 2026, though the improvement was driven in part by a decline in labor force participation.
Previous report
A policy development affecting certain housing-related sectors was also resolved during the quarter. The 21st Century ROAD to Housing Act, which restricts large institutional investors from purchasing existing single-family homes, was enacted into law on July 11, 2026. The final legislation removed the seven-year forced-disposition requirement for build-to-rent properties that had been included in earlier drafts and instead provides an unconditional exception for build-to-rent and other newly constructed rental programs.
Previous report
(A)Includes GSE and non-Agency MSRs of $20.5 billion and $8.3 billion underlying UPB, respectively, serviced by third-party subservicers.
Previous report
(A)Includes GSE and non-Agency MSRs of $20.5 billion and $8.3 billion underlying UPB, respectively, serviced by third-party subservicers.
Previous report
(G)Represents the percentage of the total principal balance of the pool that corresponds to loans that are delinquent by 90 or more days.
Previous report
Servicing revenue, net was $221.8 million for the three months ended June 30, 2026, a decrease of $153.3 million, compared to $375.1 million for the three months ended March 31, 2026. The decrease was primarily attributable to approximately $186.2 million of lower hedged MSR mark-to-market, due to steadying of interest rates and prepayment speeds. Servicing fee revenue, net and fees increased approximately $35.3 million driven by higher servicing fees collected during the three months ended June 30, 2026.
Previous report
Other residential-related revenue was $109.2 million for the six months ended June 30, 2026, comparable to $109.7 million for the six months ended June 30, 2025, reflecting no significant changes to our Guardian and SFR portfolios.
Previous report
Interest expense and warehouse line fees were $464.1 million for the three months ended June 30, 2026, an increase of $14.1 million, compared to $450.1 million for the three months ended March 31, 2026. The increase was primarily attributable to (i) an increase in mortgage loan production volume and (ii) an increase in borrowing to support growth of the RTL portfolio, partially offset by (iii) Non-QM and consumer loan securitizations during the three months ended June 30, 2026.
Previous report
Other income, net was $80.1 million for the three months ended June 30, 2026, an increase of $72.8 million, compared to $7.2 million for the three months ended March 31, 2026. The increase was primarily attributable to a change from net losses to net gains on real estate and other securities during the three months ended June 30, 2026 driven by changes in interest rates, as well as losses on early extinguishment of debt that occurred during the three months ended March 31, 2026 and did not recur in the current period.
Previous report
The increase in other gains reflects higher gains on preferred stock from certain equity method investments and gains from the securitization of certain consumer loans during the three months ended June 30, 2026, partially offset by fair value adjustments on RTLs and consumer loans.
Reworded paragraphs (106)
Previous wording
Our servicing platform complements its origination business and provides performing and special servicing capabilities to its subsidiaries and third-party clients. NRM and Newrez are licensed or otherwise eligible to service residential mortgage loans in all states within the U.S. and the District of Columbia. NRM and Newrez are also approved to service mortgage loans on behalf of investors, including Fannie Mae and Freddie Mac, and in the case of Newrez, Government National Mortgage Association (“Ginnie Mae,” collectively with the GSEs, the “Agencies” and each of Fannie Mae, Freddie Mac and Ginnie Mae, an “Agency”). Newrez is also eligible to perform servicing on behalf of other servicers as a subservicer.
Current wording
Our servicing platform complements our origination business and provides performing and special servicing capabilities to our subsidiaries and third-party clients. NRM and Newrez are licensed or otherwise eligible to service residential mortgage loans in all states within the U.S. and the District of Columbia. NRM and Newrez are also approved to service mortgage loans on behalf of investors, including Fannie Mae and Freddie Mac, and in the case of Newrez, Government National Mortgage Association (“Ginnie Mae,” collectively with the GSEs, the “Agencies” and each of Fannie Mae, Freddie Mac and Ginnie Mae, an “Agency”). Newrez is also eligible to perform servicing on behalf of other servicers as a subservicer.
Previous wording
Newrez sells substantially all of the mortgage loans it originates into the secondary market. Newrez securitizes loans into RMBS through the Agencies. Loans that do not conform to the guidelines of the Agencies, the Federal Housing Administration (“FHA”), the U.S. Department of Agriculture (the “USDA”) or the Department of Veterans Affairs (the “VA”) (for Ginnie Mae mortgage-backed securitizations) are sold to private investors and mortgage conduits. Newrez generally retains the right to service the underlying residential mortgage loans sold and/or securitized by Newrez. NRM and Newrez are required to conduct aspects of their operations in accordance with applicable policies and guidelines of such Agencies. In addition, to origination and servicing activities, this segment includes operations conducted through wholly owned subsidiaries that provide mortgage- and real estate-related services, including Guardian Asset Management (“Guardian”), a provider of field services and property management services, eStreet Appraisal Management LLC (“eStreet”), a provider of appraisal services, and Avenue 365 Lender Services, LLC (“Avenue 365”), a provider of title and settlement services.
Current wording
Newrez sells substantially all of the mortgage loans it originates into the secondary market. Newrez securitizes loans into RMBS through the Agencies. Loans that do not conform to the guidelines of the Agencies, the Federal Housing Administration (“FHA”), the U.S. Department of Agriculture (the “USDA”) or the Department of Veterans Affairs (the “VA”) (for Ginnie Mae loans or mortgage-backed securitizations) are sold to private investors and/or mortgage conduits. Newrez generally retains the right to service the underlying residential mortgage loans sold and/or securitized by Newrez. NRM and Newrez are required to conduct aspects of their operations in accordance with applicable policies and guidelines of such Agencies. In addition to origination and servicing activities, this segment includes operations conducted through wholly owned subsidiaries that provide mortgage- and real estate-related services, including Guardian Asset Management (“Guardian”), a provider of field services and property management services, eStreet Appraisal Management LLC (“eStreet”), a provider of appraisal services, and Avenue 365 Lender Services, LLC (“Avenue 365”), a provider of title and settlement services.
Previous wording
Our Commercial Real Estate segment includes the ownership, operation and management of a portfolio of CRE assets, primarily Class A office properties located in New York City and San Francisco. This segment reflects our expansion into CRE equity ownership and operations, including the acquisition of Elecor in December 2025. We manage these assets as part of our broader CRE platform, generating revenues primarily from rental revenue and other property-related revenues. In April 2026, the Company announced the rebranding of the Paramount Group platform to Elecor Properties.
Current wording
Our Commercial Real Estate segment includes the ownership, operation and management of a portfolio of CRE assets, primarily consisting of Class A office properties located in New York City and San Francisco. This segment reflects our expansion into CRE equity ownership and operations, including the acquisition of Elecor in December 2025. We manage these assets as part of our broader CRE platform, generating revenues primarily from rental revenue and other property-related revenues. In April 2026, the Company announced the rebranding of the Paramount Group platform to Elecor Properties.
Previous wording
During the second quarter of 2026, macroeconomic conditions reflected persistent inflation, an easing in labor force participation and continued volatility in energy prices and interest rates amid the ongoing conflict with Iran. The Federal Reserve maintained the federal funds target range at 3.50%–3.75% during its April and June 2026 meetings, with the June meeting marking the first under new Federal Reserve Chair Kevin Warsh, whose accompanying Summary of Economic Projections signaled a more hawkish policy stance and the potential for a rate increase later in 2026, a reversal from the cutting-cycle expectations that had prevailed as recently as the first quarter; however, in its July meeting, the Federal Reserve continued to maintain the current target range.
Current wording
During the third quarter of 2026, macroeconomic conditions reflected persistent inflation, a slowdown in job growth and continued volatility in energy prices and interest rates amid the ongoing conflict with Iran. The Federal Reserve maintained the federal funds target range at 3.50%–3.75% at its July 2026 meeting and then raised the range by 25 basis points to 3.75%–4.00% at its September 2026 meeting, its first increase since 2023 and the first rate change under Federal Reserve Chair Kevin Warsh. The accompanying Summary of Economic Projections indicated the potential for an additional rate increase later in 2026, a reversal from the cutting-cycle expectations that had prevailed as recently as the first quarter.
Previous wording
Market interest rates increased further during the quarter, with the 10-year Treasury yield rising 14 basis points to 4.44%, while market expectations shifted to reflect the possibility of a rate increase later in 2026. Equity markets rallied during the quarter, with the S&P 500 gaining 14.9% and recovering from the prior quarter's decline, driven substantially by technology and AI-related strength.
Current wording
Market interest rates increased sharply during the quarter, with the 10-year Treasury yield rising 85 basis points to 5.29%, while market expectations continued to reflect the possibility of a further rate increase later in 2026. Equity markets advanced modestly during the quarter, with the S&P 500 gaining 2.0%, following a 14.9% gain in the second quarter of 2026.
Previous wording
Inflation increased further during the second quarter of 2026, primarily reflecting higher energy prices amid the ongoing conflict with Iran. Consumer Price Index (“CPI”) inflation rose from 3.3% in March 2026 to 3.5% in June 2026, driven in part by an increase in energy prices from 12.5% in March 2026 to 15.7% in June 2026 on a year-over-year basis.
Current wording
Inflation increased further during the third quarter of 2026, primarily reflecting higher energy prices amid the ongoing conflict with Iran. CPI inflation rose from 3.5% in June 2026 to 3.7% in September 2026, driven in part by an increase in energy prices from 15.7% in June 2026 to 20.4% in September 2026 on a year-over-year basis.
Previous wording
Core CPI, which excludes food and energy, remained essentially flat at 2.6% in June 2026. Core Personal Consumption Expenditures, the Federal Reserve’s preferred measure of underlying inflation, increased 3.3% in June 2026 compared to the prior-year period. Other inflation indicators showed further increases, with producer price inflation rising to 5.5% in June 2026 from 4.3% in March 2026, and import prices increasing 7.1% over the 12 months ending June 30, 2026, compared to 2.3% over the 12 months ending March 31, 2026.
Current wording
Core CPI, which excludes food and energy, remained essentially flat at 2.6% in September 2026. Core Personal Consumption Expenditures, the Federal Reserve’s preferred measure of underlying inflation, increased 3.1% year-over-year in September 2026, compared to 3.0% year-over-year in June 2026. Other inflation indicators were mixed, with producer price inflation rising to 6.3% in September 2026 from 5.6% in June 2026, and import prices increasing 8.1% over the 12 months ending September 30, 2026, compared to 6.7% over the 12 months ending June 30, 2026.
Previous wording
Treasury yields increased further during the second quarter of 2026. The 10-year Treasury yield rose 14 basis points to 4.44% from 4.30% at the end of March 2026. Shorter-term yields increased more significantly, with the 2-year Treasury yield rising 35 basis points to 4.14%. As a result, the yield curve flattened further, with the spread between 2-year and 10-year Treasury yields narrowing from 51 basis points to 30 basis points over the quarter. This shift reflects the more hawkish policy outlook communicated by the Federal Reserve following the change in its leadership.
Current wording
Treasury yields increased sharply during the third quarter of 2026. The 10-year Treasury yield rose 85 basis points to 5.29% from 4.44% at the end of June 2026. Shorter-term yields also increased, though by less, with the 2-year Treasury yield rising 74 basis points to 4.88%. As a result, the yield curve steepened modestly, with the spread between 2-year and 10-year Treasury yields widening from 30 basis points to 41 basis points over the quarter. This shift reflects the Federal Reserve’s September rate increase and the more hawkish policy outlook communicated alongside it, together with persistent inflation and elevated energy prices.
Previous wording
Labor market conditions continued to stabilize during the second quarter of 2026, though signals were mixed. The unemployment rate declined by 0.1 percentage points from 4.3% in March 2026 to 4.2% in June 2026, aided in part by a decline in labor force participation. Job growth accelerated during the quarter, with non-farm payrolls increasing by an average of 111,000 per month, compared to an average of 73,000 per month during the first quarter of 2026. However, initial unemployment insurance claims increased, averaging 222,000 per week during the second quarter of 2026, compared to 209,000 per week in the prior quarter.
Current wording
Labor market conditions reflected the low-hire, low-fire environment during the third quarter of 2026, with slower job growth and a stable unemployment rate. The unemployment rate was unchanged at 4.2% in September 2026 compared to June 2026. Job growth slowed during the quarter, with non-farm payrolls increasing by an average of 51,000 per month, compared to an average of 81,000 per month during the second quarter of 2026. However, initial unemployment insurance claims declined, averaging 200,000 per week during the third quarter of 2026, compared to 222,000 per week in the prior quarter.
Previous wording
Housing market activity was mixed during the second quarter of 2026. Existing home sales rose modestly to an annualized rate of 4.09 million, compared to 4.01 million in the first quarter of 2026, though sales remained rangebound amid still-elevated mortgage rates. New home sales declined to an annualized rate of approximately 628,000 in the second quarter of 2026, compared to approximately 659,000 in the first quarter of 2026. Home price growth increased modestly, with the median resale price rising 1.8% year-over-year in June 2026, compared to 1.5% in March 2026. Mortgage rates increased further during the quarter, with the 30-year fixed rate rising to 6.29% from 6.07% at the end of March 2026.
Current wording
Housing market activity softened during the third quarter of 2026. Existing home sales declined to an annualized rate of 3.99 million, compared to 4.13 million in the second quarter of 2026, amid sharply higher mortgage rates. New home sales declined to a seasonally adjusted annualized rate of approximately 676,000 in September 2026, compared to approximately 680,000 in the second quarter of 2026. Home price growth slowed, with the median resale price rising 1.3% year-over-year in September 2026, compared to 2.3% in June 2026. Mortgage rates increased sharply during the quarter, with the 30-year fixed rate rising to 7.10% from 6.29% at the end of June 2026.
Previous wording
The U.S. CRE market moved through the second quarter of 2026 with improving fundamentals in several sectors, even as the interest rate backdrop grew more uncertain. Following the change in Federal Reserve leadership, the Federal Open Market Committee shifted from signaling further rate cuts to a notably more hawkish posture, and recent commentary from officials, combined with inflation running above target, has introduced the possibility of a rate increase later this year—a reversal from the cutting-cycle expectations that prevailed as recently as the first quarter; however, in its July meeting, the Federal Reserve continued to maintain the current target range. Longer-term rates moved higher as geopolitical developments affecting energy prices added further inflation risk. Despite this, capital has continued to flow into the sector, with underwriting simply reflecting a more disciplined, higher-for-longer rate environment rather than a retreat from CRE broadly.
Current wording
The U.S. CRE market moved through the third quarter of 2026 with improving fundamentals in several sectors, even as the interest rate backdrop became less supportive. In September, the Federal Open Market Committee raised the federal funds target range by 25 basis points to 3.75%–4.00%, its first increase since 2023, and updated projections point to the possibility of an additional increase later this year—a reversal from the cutting-cycle expectations that prevailed as recently as the first quarter. Longer-term rates moved sharply higher, with the 10-year Treasury yield rising 85 basis points to 5.29%, as persistent inflation and geopolitical developments affecting energy prices added further inflation risk. Despite this, capital has continued to flow into the sector, with underwriting simply reflecting a more disciplined, higher-for-longer rate environment rather than a retreat from CRE broadly.
Previous wording
The Origination and Servicing segment is Rithm Capital’s largest business by assets, equity and earnings contribution. The segment operates through our wholly owned subsidiaries Newrez and NRM, through which, we originate and service residential mortgage loans across multiple distribution channels and product types. As of March 31, 2026, the latest period for which servicing rankings are available, Newrez ranked among the top five lenders in the U.S. based on total funded volume of originations and the top five servicers in the U.S. based on total unpaid principal balance (“UPB”) serviced, according to Inside Mortgage Finance.
Current wording
The Origination and Servicing segment is Rithm Capital’s largest business by assets, equity and earnings contribution. The segment operates through our wholly owned subsidiaries Newrez and NRM, through which we originate and service residential mortgage loans across multiple distribution channels and product types. As of June 30, 2026, the latest period for which servicing rankings are available, Newrez ranked among the top ten lenders in the U.S. based on total funded volume of originations and the top five servicers in the U.S. based on total unpaid principal balance (“UPB”) serviced, according to Inside Mortgage Finance.
Previous wording
Revenue in the Origination and Servicing segment is generated primarily from residential mortgage loan originations and servicing. Origination revenues include gains on the sale of residential mortgage loans and the value of MSRs retained upon loan transfer. Servicing revenues consist primarily of contractual servicing fees and ancillary servicing income. Profitability varies by origination channel, with Direct to Consumer originations generally generating higher margins and Correspondent originations generally generating lower margins.
Current wording
Revenue in the Origination and Servicing segment is generated primarily from residential mortgage loan originations and servicing. Origination revenues include gains on the sale of residential mortgage loans, which includes the value of MSRs retained upon loan transfer. Profitability varies by origination channel, with Direct to Consumer originations generally generating higher margins and Correspondent originations generally generating lower margins. Servicing revenues consist primarily of contractual servicing fees and ancillary servicing income.
Previous wording
Our origination platform funded approximately $15.9 billion and $15.5 billion of residential mortgage loans during the three months ended June 30, 2026 and March 31, 2026, respectively, and $31.4 billion and $28.1 billion during the six months ended June 30, 2026 and 2025, respectively. The table below provides selected operating statistics by channel and product for our Origination and Servicing segment:
Current wording
Our origination platform funded approximately $12.9 billion and $15.9 billion of residential mortgage loans during the three months ended September 30, 2026 and June 30, 2026, respectively, and $44.3 billion and $44.5 billion during the nine months ended September 30, 2026 and 2025, respectively. The table below provides selected operating statistics by channel and product for our Origination and Servicing segment:
Previous wording
As of June 30, 2026, our performing servicing division serviced approximately $551.2 billion UPB of loans, our special servicing division serviced approximately $285.2 billion UPB of loans and third-party servicers serviced approximately $28.8 billion UPB of loans, for a total servicing portfolio of approximately $865.2 billion UPB. This represented an increase of approximately $14.8 billion as compared to March 31, 2026, primarily reflecting new client acquisitions and loan production activity, partially offset by scheduled and voluntary loan prepayments, and an increase of $1.0 billion as compared to June 30, 2025, primarily driven by new client acquisitions and loan production activity, partially offset by loan paydowns.
Current wording
As of September 30, 2026, our performing servicing division serviced approximately $554.3 billion UPB of loans, our special servicing division serviced approximately $300.5 billion UPB of loans and third-party servicers serviced approximately $24.1 billion UPB of loans, for a total servicing portfolio of approximately $878.9 billion UPB. This represented an increase of approximately $13.7 billion as compared to June 30, 2026, primarily reflecting new client acquisitions and loan production activity, partially offset by scheduled and voluntary loan prepayments, and an increase of $1.4 billion as compared to September 30, 2025, primarily driven by new client acquisitions and loan production activity, partially offset by loan paydowns.
Previous wording
As of June 30, 2026, Newrez serviced approximately 4.0 million customers. The aggregate UPB of loans serviced by Newrez was approximately $836.4 billion, $799.3 billion and $807.3 billion as of June 30, 2026, March 31, 2026 and June 30, 2025, respectively.
Current wording
As of September 30, 2026, Newrez serviced approximately 4.0 million customers. The aggregate UPB of loans serviced by Newrez was approximately $854.8 billion, $836.4 billion and $822.1 billion as of September 30, 2026, June 30, 2026 and September 30, 2025, respectively.
Previous wording
As of June 30, 2026, approximately 95.2% of the UPB of residential mortgage loans underlying our owned MSRs was serviced by Newrez. In addition to MSRs serviced by Newrez, we engage third-party subservicers, including PHH and Valon, to perform servicing activities with respect to a portion of the residential mortgage loans underlying our MSRs and MSR financing receivables. As of June 30, 2026, loans serviced by these third-party subservicers had an aggregate UPB of approximately $28.8 billion, representing approximately 4.8% of our total servicing portfolio.
Current wording
As of September 30, 2026, approximately 95.9% of the UPB of residential mortgage loans underlying our owned MSRs was serviced by Newrez.
Previous wording
We finance our investments in MSRs and MSR financing receivables primarily through short- and medium-term bank facilities and capital markets financings. These borrowings are either recourse or non-recourse obligations and bear interest at either fixed or variable rates based on a specified margin over the Secured Overnight Financing Rate (“SOFR”). Capital markets financings are typically subject to collateral coverage requirements, which are calculated as the ratio of the outstanding note balance to the market value of the underlying collateral. The market value of the collateral is generally updated periodically, and if the collateral coverage ratio exceeds a specified threshold—generally 90%— we may be required to contribute additional collateral, repay a portion of the outstanding debt or post cash to restore compliance. The difference between the applicable collateral coverage ratio and the related trigger level is commonly referred to as a “margin holiday.”
Current wording
We finance our investments in MSRs primarily through short- and medium-term bank facilities and capital markets financings. These borrowings are either recourse or non-recourse obligations and bear interest at either fixed or variable rates based on a specified margin over the Secured Overnight Financing Rate (“SOFR”). Capital markets financings are typically subject to collateral coverage requirements, which are calculated as the ratio of the outstanding note balance to the market value of the underlying collateral. The market value of the collateral is generally updated periodically, and if the collateral coverage ratio exceeds a specified threshold—generally 90%— we may be required to contribute additional collateral, repay a portion of the outstanding debt or post cash to restore compliance. The difference between the applicable collateral coverage ratio and the related trigger level is commonly referred to as a “margin holiday.”
Previous wording
The table below summarizes our MSRs and MSR financing receivables as of June 30, 2026:
Current wording
The table below summarizes our MSRs as of September 30, 2026:
Previous wording
The following tables summarize the collateral characteristics of the residential mortgage loans underlying our MSRs and MSR financing receivables as of June 30, 2026 (dollars in thousands):
Current wording
The following tables summarize the collateral characteristics of the residential mortgage loans underlying our MSRs as of September 30, 2026 (dollars in thousands):
Previous wording
(B)Based on the weighted average (“WA”) of information provided by the loan servicer on a monthly basis. The loan servicer generally updates the Fair Isaac Corporation (“FICO”) score when loans are refinanced or become delinquent.
Current wording
(A)Based on the weighted average (“WA”) of information provided by the loan servicer on a monthly basis. The loan servicer generally updates the Fair Isaac Corporation (“FICO”) score when loans are refinanced or become delinquent.
Previous wording
(C)Represents the percentage of the total principal balance of the pool that corresponds to adjustable rate mortgages.
Current wording
(B)Represents the percentage of the total principal balance of the pool that corresponds to adjustable rate mortgages.
Previous wording
(D)The conditional prepayment rate (“CPR”) represents the annualized rate of the prepayments during the quarter as a percentage of the total principal balance of the pool.
Current wording
(C)The conditional prepayment rate (“CPR”) represents the annualized rate of the prepayments during the quarter as a percentage of the total principal balance of the pool.
Previous wording
(E)The conditional repayment rate (“CRR”) represents the annualized rate of the voluntary prepayments during the quarter as a percentage of the total principal balance of the pool.
Current wording
(D)The conditional repayment rate (“CRR”) represents the annualized rate of the voluntary prepayments during the quarter as a percentage of the total principal balance of the pool.
Previous wording
(F)The conditional default rate (“CDR”) represents the annualized rate of the involuntary prepayments (defaults) during the quarter as a percentage of the total principal balance of the pool.
Current wording
(E)The conditional default rate (“CDR”) represents the annualized rate of the involuntary prepayments (defaults) during the quarter as a percentage of the total principal balance of the pool.
Previous wording
See Note 5 to our consolidated financial statements for additional information regarding our MSRs, MSR financing receivables and servicer advances receivable, and Note 17 for additional information regarding the related financing arrangements.
Current wording
See Note 5 to our consolidated financial statements for additional information regarding our MSRs and servicer advances receivable and Note 17 for additional information regarding the related financing arrangements.
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, 2026 (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, 2026 (dollars in thousands):
Previous wording
(A)Agency RMBS are held at fair value under the fair value option election. Treasury securities include $24.9 million of short-term Treasury bills held-to-maturity at amortized cost.
Current wording
(A)Agency RMBS are held at fair value under the fair value option election. Treasury securities include $25.0 million of short-term Treasury bills held-to-maturity at amortized cost.
Previous wording
The Residential Transitional Lending segment operates through Genesis, a wholly owned Rithm subsidiary that originates and manages short-term, business-purpose mortgage loans secured by residential and multifamily real estate. Genesis is the second-largest U.S. residential transitional lender based on market data and management's estimates of total origination volume.
Current wording
The Residential Transitional Lending segment operates through Genesis, a wholly owned Rithm Capital subsidiary that originates and manages short-term, business-purpose mortgage loans secured by residential and multifamily real estate. Genesis is the second-largest U.S. residential transitional lender based on market data and management’s estimates of total origination volume.
Previous wording
LTARV are generally calculated as the total commitment at origination divided by the total estimated project cost or the value of the property after completion of renovations, as applicable. LTV is generally calculated as the total commitment at origination divided by the “as-complete” appraisal. At origination, we typically fund a portion of the commitment at closing and hold back the remaining amount for future draws, subject to inspections, progress reporting and other conditions in the loan documents. These ratios do not reflect interim activity such as construction draws, interest capitalization or partial repayments.
Current wording
Collateral and underwriting. The loans are generally secured by a mortgage or first deed of trust on the underlying real estate. Commitment sizing is determined under our lending policies and is typically based on (i) loan-to-cost (“LTC”) or loan-to-after-repair value (“LTARV”) for construction and renovation loans and (ii) loan-to-value (“LTV”) for bridge loans. LTC and LTARV are generally calculated as the total commitment at origination divided by the total estimated project cost or the value of the property after completion of renovations, as applicable. LTV is generally calculated as the total commitment at origination divided by the “as-complete” appraisal. At origination, we typically fund a portion of the commitment at closing and hold back the remaining amount for future draws, subject to inspections, progress reporting and other conditions in the loan documents. These ratios do not reflect interim activity such as construction draws, interest capitalization or partial repayments.
Previous wording
Loan economics and terms. Commitments are generally interest-only and bear a variable rate based on SOFR plus a spread (currently ranging from 4% to 15%), with initial terms typically ranging from 6 to 120 months, depending on project size and expected completion timeline. We may extend loans based on our assessment of project status and other underwriting considerations. As of June 30, 2026, the average commitment size was $5.0 million, and the weighted average remaining term to contractual maturity was 13.8 months.
Current wording
Loan economics and terms. Commitments are generally interest-only and bear a variable rate based on SOFR plus a spread (currently ranging from 4% to 15%), with initial terms typically ranging from 6 to 120 months, depending on project size and expected completion timeline. We may extend loans based on our assessment of project status and other underwriting considerations. As of September 30, 2026, the average commitment size was $4.6 million, and the weighted average remaining term to contractual maturity was 13.1 months.
Previous wording
We earn loan origination fees (“points”), which are generally based on the loan term, borrower profile and collateral characteristics. As of June 30, 2026, we earned an average of 1.2% of total commitment at origination. We also may earn past-due fees, cost reimbursements (including for closing, collection and inspection-related expenses), extension fees for renewals or extensions, and amendment fees for loan modifications. Renewals and extensions are generally evaluated under our then-current underwriting criteria, including applicable LTV limitations based on the origination appraisal or an updated appraisal when required. Origination and renewal fees are recognized as income at origination as residential transition loans (“RTLs” and each, an “RTL”) are measured at fair value.
Current wording
We earn loan origination fees (“points”), which are generally based on the loan term, borrower profile and collateral characteristics. As of September 30, 2026, we earned an average of 1.1% of total commitment at origination. We also may earn past-due fees, cost reimbursements (including for closing, collection and inspection-related expenses), extension fees for renewals or extensions and amendment fees for loan modifications. Renewals and extensions are generally evaluated under our then-current underwriting criteria, including applicable LTV limitations based on the origination appraisal or an updated appraisal when required. Origination and renewal fees are recognized as income at origination as residential transition loans (“RTLs” and each, an “RTL”) are measured at fair value.
Previous wording
Borrowers and use of proceeds. Borrowers are typically residential real estate investors and developers. Proceeds are generally used to fund construction, renovation, development, acquisition, refinancing and, to a lesser extent, mixed-use projects. Loans are typically structured with partial funding at closing and additional advances disbursed upon completion of agreed construction milestones.
Current wording
Borrowers and use of proceeds. Borrowers are typically residential and multifamily real estate investors and developers. Proceeds are generally used to fund construction, renovation, development, acquisition, refinancing and, to a lesser extent, mixed-use projects. Loans are typically structured with partial funding at closing and additional advances disbursed upon completion of agreed construction milestones.
Previous wording
(B)Includes carrying value and UPB of residential transition loans of consolidated entities of approximately $1.2 billion as of June 30, 2026 and December 31, 2025.
Current wording
(B)Includes carrying value and UPB of residential transition loans of consolidated entities of approximately $1.5 billion as of September 30, 2026 and December 31, 2025.
Previous wording
As of June 30, 2026, the Asset Management segment managed approximately $61 billion in AUM, of which approximately $39 billion and $20 billion was managed by Sculptor and Crestline, respectively.
Current wording
As of September 30, 2026, the Asset Management segment managed approximately $61 billion in AUM, of which approximately $38 billion and $21 billion was managed by Sculptor and Crestline, respectively.
Previous wording
AUM is estimated and refers to the value of assets for which Rithm Capital and its affiliates provide discretionary investment management or advisory services. AUM is generally calculated as the sum of: (i) the net asset value of managed accounts and open-ended funds or gross asset value of direct lending, real estate and real estate funds, (ii) uncalled capital commitments and (iii) par value of structured credit vehicles (e.g., collateralized loan obligations). AUM includes amounts that are not subject to management fees, incentive income or other amounts earned on AUM. AUM also includes amounts that are invested in other affiliated funds/vehicles. Rithm Capital's calculation of AUM is intended to provide a consistent and comparable measure of managed assets across its businesses; however it is not based on any specific regulatory definition and may differ from similarly titled measures presented by other asset managers and, as a result, may not be comparable.
Current wording
AUM is estimated and refers to the value of assets for which Rithm Capital and its affiliates provide discretionary investment management, advisory services or real estate asset management. AUM is generally calculated as the sum of: (i) the net asset value of managed accounts and open-ended funds or gross asset value of direct lending, real estate and real estate funds, (ii) uncalled capital commitments and (iii) par value of structured credit vehicles (e.g., collateralized loan obligations). AUM includes amounts that are not subject to management fees, incentive income or other amounts earned on AUM. AUM also includes amounts that are invested in other affiliated funds/vehicles. Rithm Capital’s calculation of AUM is intended to provide a consistent and comparable measure of managed assets across its businesses; however it is not based on any specific regulatory definition and may differ from similarly titled measures presented by other asset managers and, as a result, may not be comparable.
Previous wording
Investments in Excess MSRs represent the portion of the mortgage servicing compensation that exceeds the base servicing fee. Our Excess MSR assets include our ownership interests in Excess MSRs and related recapture agreements that were acquired from, and are serviced by, Rocket Companies, Inc., as successor by merger to Mr. Cooper Group Inc.
Current wording
Investments in Excess MSRs represent the portion of the mortgage servicing compensation that exceeds the base servicing fee. Our Excess MSR assets include our ownership interests in Excess MSRs and related recapture agreements that were acquired from, and are serviced by, Rocket Companies, Inc., as successor by merger to Mr. Cooper Group Inc. (“Rocket”).
Previous wording
(B)Represents Excess MSRs serviced by Rocket. We also invested in related servicer advance investments, including the base fee component of the related MSR on $11.2 billion UPB underlying these Excess MSRs.
Current wording
(B)Represents Excess MSRs serviced by Rocket. We also invested in related servicer advance investments, including the base fee component of the related MSR on $10.9 billion UPB underlying these Excess MSRs.
Previous wording
(E)The following table summarizes the types of advances included in servicer advance investments (dollars in thousands):
Current wording
(B)The following table summarizes the types of advances included in servicer advance investments (dollars in thousands):
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, 2026 (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, 2026 (dollars in thousands):
Showing the first 40 of 106 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Collateral and underwriting. The loans are generally secured by a mortgage or first deed of trust on the underlying real estate. Commitment sizing is determined under our lending policies and is typically based on (i) loan-to-cost (“LTC”) or loan-to-after-repair value (“LTARV”) for construction and renovation loans and (ii) loan-to-value (“LTV”) for bridge loans. LTC and