Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 27, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-35777 | |
Entity Registrant Name | Rithm Capital Corp. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3449660 | |
Entity Address, Address Line One | 799 Broadway | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10003 | |
City Area Code | (212) | |
Local Phone Number | 850-7770 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 483,214,061 | |
Entity Central Index Key | 0001556593 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Common Stock, $0.01 par value per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | RITM | |
Security Exchange Name | NYSE | |
7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |
Trading Symbol | RITM PR A | |
Security Exchange Name | NYSE | |
7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |
Trading Symbol | RITM PR B | |
Security Exchange Name | NYSE | |
6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |
Trading Symbol | RITM PR C | |
Security Exchange Name | NYSE | |
7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock | |
Trading Symbol | RITM PR D | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Assets | |||
Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value | $ 8,694,868 | $ 8,889,403 | |
Real estate and other securities ($9,201,474 and $8,289,277 at fair value, respectively) | 10,193,596 | 8,289,277 | |
Residential loans held-for-investment, at fair value | 370,957 | 452,519 | |
Residential mortgage loans, held-for-sale ($2,740,599 and $3,297,271 at fair value, respectively) | 2,819,282 | 3,398,298 | |
Consumer loans held-for-investment, at fair value | [1] | 1,436,080 | 363,756 |
Single-family rental properties | 991,948 | 971,313 | |
Mortgage loans receivable, at fair value | [1] | 2,135,424 | 2,064,028 |
Residential mortgage loans subject to repurchase | [2] | 1,443,546 | 1,219,890 |
Cash and cash equivalents | [1] | 1,217,283 | 1,336,508 |
Restricted cash | [1] | 368,447 | 281,126 |
Servicer advances receivable | 2,434,266 | 2,825,485 | |
Receivable for investments sold | 219,963 | 473,126 | |
Other assets | [1] | 2,419,868 | 1,914,607 |
Total assets | 34,745,528 | 32,479,336 | |
Liabilities | |||
Secured financing agreements | [1] | 13,605,380 | 11,257,736 |
Secured notes and bonds payable ($552,920 and $632,404 at fair value, respectively) | [1] | 9,964,855 | 10,098,943 |
Residential mortgage loan repurchase liability | [2] | 1,443,546 | 1,219,890 |
Unsecured senior notes, net of issuance costs | 546,374 | 545,056 | |
Payable for investments purchased | 0 | 731,216 | |
Dividends payable | 135,095 | 129,760 | |
Accrued expenses and other liabilities | [1] | 1,782,315 | 1,486,667 |
Total liabilities | 27,477,565 | 25,469,268 | |
Commitments and Contingencies | |||
Equity | |||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 51,964,122 and 51,964,122 issued and outstanding, $1,299,104 and $1,299,104 aggregate liquidation preference, respectively | 1,257,254 | 1,257,254 | |
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 483,214,061 and 473,715,100 issued and outstanding, respectively | 4,833 | 4,739 | |
Additional paid-in capital | 6,070,970 | 6,062,019 | |
Retained earnings (accumulated deficit) | (164,010) | (418,662) | |
Accumulated other comprehensive income | 39,009 | 37,651 | |
Total Rithm Capital stockholders’ equity | 7,208,056 | 6,943,001 | |
Noncontrolling interests in equity of consolidated subsidiaries | [1] | 59,907 | 67,067 |
Total equity | 7,267,963 | 7,010,068 | |
Liabilities and Equity | $ 34,745,528 | $ 32,479,336 | |
[1]The Company's Consolidated Balance Sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations and liabilities of the VIE for which creditors do not have recourse to the primary beneficiary (Rithm Capital). As of September 30, 2023 and December 31, 2022, total assets of consolidated VIEs were $2.2 billion and $2.3 billion, respectively, and total liabilities of consolidated VIEs were $1.8 billion and $1.8 billion, respectively. See Note 20 for further details.[2]See Note 5 for details. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Real estate and other securities | $ 9,201,474 | $ 8,289,277 |
Residential mortgage loans, held-for-sale, at fair value | 2,740,599 | 3,297,271 |
Secured notes and bonds payable, at fair value | $ 552,920 | $ 632,404 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 51,964,122 | 51,964,122 |
Preferred stock, shares outstanding (in shares) | 51,964,122 | 51,964,122 |
Preferred stock, liquidation preference | $ 1,299,104 | $ 1,299,104 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 483,214,061 | 473,715,100 |
Common stock, shares outstanding (in shares) | 483,214,061 | 473,715,100 |
Assets | $ 34,745,528 | $ 32,479,336 |
Liabilities | 27,477,565 | 25,469,268 |
Variable Interest Entity, Primary Beneficiary | ||
Residential mortgage loans, held-for-sale, at fair value | 1,094,978 | 844,000 |
Assets | 2,198,122 | 2,257,091 |
Liabilities | $ 1,830,237 | $ 1,778,901 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ 442,644 | $ 453,163 | $ 1,378,045 | $ 1,379,041 |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(138,993), $(141,616), $(384,094) and $(522,206), respectively) | 20,934 | (19,174) | (99,338) | 890,281 |
Servicing revenue, net | 463,578 | 433,989 | 1,278,707 | 2,269,322 |
Interest income | 476,607 | 273,379 | 1,222,007 | 710,440 |
Gain on originated residential mortgage loans, held-for-sale, net | 149,230 | 203,479 | 410,320 | 980,266 |
Total revenues | 1,089,415 | 910,847 | 2,911,034 | 3,960,028 |
Expenses | ||||
Interest expense and warehouse line fees | 382,554 | 218,089 | 1,020,780 | 507,751 |
General and administrative | 190,475 | 214,624 | 539,138 | 686,133 |
Compensation and benefits | 186,149 | 290,984 | 564,635 | 1,023,261 |
Management fee | 0 | 0 | 0 | 46,174 |
Termination fee to affiliate | 0 | 0 | 0 | 400,000 |
Total operating expenses | 759,178 | 723,697 | 2,124,553 | 2,663,319 |
Other Income (Loss) | ||||
Realized and unrealized gains (losses) on investments, net | (127,508) | (34,118) | (113,732) | (256,656) |
Other income (loss), net | 71,047 | 23,242 | 117,385 | 134,962 |
Total other income (loss) | (56,461) | (10,876) | 3,653 | (121,694) |
Income (loss) before income taxes | 273,776 | 176,274 | 790,134 | 1,175,015 |
Income tax expense (benefit) | 52,585 | 22,084 | 92,309 | 297,563 |
Net income (loss) | 221,191 | 154,190 | 697,825 | 877,452 |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 4,848 | 7,307 | 10,437 | 27,098 |
Dividends on preferred stock | 22,394 | 22,427 | 67,184 | 67,315 |
Net Income (Loss) Attributable to Common Stockholders - basic | 193,949 | 124,456 | 620,204 | 783,039 |
Net Income (Loss) Attributable to Common Stockholders - diluted | $ 193,949 | $ 124,456 | $ 620,204 | $ 783,039 |
Net Income (Loss) Per Share of Common Stock | ||||
Basic (in dollars per share) | $ 0.40 | $ 0.27 | $ 1.29 | $ 1.68 |
Diluted (in dollars per share) | $ 400 | $ 260 | $ 1,280 | $ 1,620 |
Weighted Average Number of Shares of Common Stock Outstanding | ||||
Basic (in shares) | 483,214,061 | 467,974,962 | 481,503,762 | 467,192,721 |
Diluted (in shares) | 484,350,288 | 476,796,757 | 483,530,227 | 481,900,129 |
Dividends Declared per Share of Common Stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Realization of cash flows | $ (384,094) | |||
MSRs | ||||
Realization of cash flows | $ (138,993) | $ (141,616) | $ (384,094) | $ (522,206) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Net income | $ 221,191 | $ 154,190 | $ 697,825 | $ 877,452 |
Other comprehensive income, net of tax: | ||||
Unrealized gain (loss) on available-for-sale securities, net | (945) | (9,283) | 1,358 | (41,916) |
Comprehensive income | 220,246 | 144,907 | 699,183 | 835,536 |
Comprehensive income (loss) attributable to noncontrolling interests | 4,848 | 7,307 | 10,437 | 27,098 |
Dividends on preferred stock | 22,394 | 22,427 | 67,184 | 67,315 |
Comprehensive income (loss) attributable to common stockholders | $ 193,004 | $ 115,173 | $ 621,562 | $ 741,123 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Total Rithm Capital Stockholders’ Equity | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Noncontrolling Interests in Equity of Consolidated Subsidiaries |
Preferred stock, shares outstanding, beginning balance (in shares) at Dec. 31, 2021 | 52,210,000,000 | |||||||
Common stock, shares outstanding beginning balance (in shares) at Dec. 31, 2021 | 466,758,266,000 | |||||||
Equity, beginning balance at Dec. 31, 2021 | $ 6,669,380 | $ 6,604,032 | $ 1,262,481 | $ 4,669 | $ 6,059,671 | $ (813,042) | $ 90,253 | $ 65,348 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared on common stock | (351,840) | (351,840) | (351,840) | |||||
Dividends declared on preferred stock | (67,315) | (67,315) | (67,315) | |||||
Capital distributions | (21,391) | (21,391) | ||||||
Cashless exercise of 2020 Warrants (in shares) | 6,858,347,000 | |||||||
Cashless exercise of 2020 Warrants | 0 | $ 69 | (69) | |||||
Preferred stock repurchase (in shares) | (171,658,000) | |||||||
Preferred stock repurchase | (3,814) | (3,814) | $ (3,814) | |||||
Director share grants (in shares) | 98,487,000 | |||||||
Director share grants | 1,070 | 1,070 | $ 1 | 1,069 | ||||
Comprehensive income (loss) | ||||||||
Net income (loss) | 877,452 | 850,354 | 850,354 | 27,098 | ||||
Unrealized gain (loss) on available-for-sale securities, net | (41,916) | (41,916) | (41,916) | |||||
Comprehensive income | 835,536 | 808,438 | 27,098 | |||||
Preferred stock, shares outstanding, ending balance (in shares) at Sep. 30, 2022 | 52,038,342,000 | |||||||
Common stock, shares outstanding ending balance (in shares) at Sep. 30, 2022 | 473,715,100,000 | |||||||
Equity, ending balance at Sep. 30, 2022 | 7,061,626 | 6,990,571 | $ 1,258,667 | $ 4,739 | 6,060,671 | (381,843) | 48,337 | 71,055 |
Preferred stock, shares outstanding, beginning balance (in shares) at Jun. 30, 2022 | 52,038,342,000 | |||||||
Common stock, shares outstanding beginning balance (in shares) at Jun. 30, 2022 | 466,856,753,000 | |||||||
Equity, beginning balance at Jun. 30, 2022 | 7,062,998 | 6,993,827 | $ 1,258,667 | $ 4,670 | 6,060,740 | (387,870) | 57,620 | 69,171 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared on common stock | (118,429) | (118,429) | (118,429) | |||||
Dividends declared on preferred stock | (22,427) | (22,427) | (22,427) | |||||
Capital distributions | (5,423) | (5,423) | ||||||
Cashless exercise of 2020 Warrants (in shares) | 6,858,347,000 | |||||||
Cashless exercise of 2020 Warrants | 0 | $ 0 | $ 69 | (69) | ||||
Comprehensive income (loss) | ||||||||
Net income (loss) | 154,190 | 146,883 | 146,883 | 7,307 | ||||
Unrealized gain (loss) on available-for-sale securities, net | (9,283) | (9,283) | (9,283) | |||||
Comprehensive income | 144,907 | 137,600 | 7,307 | |||||
Preferred stock, shares outstanding, ending balance (in shares) at Sep. 30, 2022 | 52,038,342,000 | |||||||
Common stock, shares outstanding ending balance (in shares) at Sep. 30, 2022 | 473,715,100,000 | |||||||
Equity, ending balance at Sep. 30, 2022 | $ 7,061,626 | 6,990,571 | $ 1,258,667 | $ 4,739 | 6,060,671 | (381,843) | 48,337 | 71,055 |
Preferred stock, shares outstanding, beginning balance (in shares) at Dec. 31, 2022 | 51,964,122 | 51,964,122,000 | ||||||
Common stock, shares outstanding beginning balance (in shares) at Dec. 31, 2022 | 473,715,100 | 473,715,100,000 | ||||||
Equity, beginning balance at Dec. 31, 2022 | $ 7,010,068 | 6,943,001 | $ 1,257,254 | $ 4,739 | 6,062,019 | (418,662) | 37,651 | 67,067 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared on common stock | (362,388) | (362,388) | (362,388) | |||||
Dividends declared on preferred stock | (67,185) | (67,185) | (67,185) | |||||
Capital contributions | 0 | |||||||
Capital distributions | (17,597) | (17,597) | ||||||
Cashless exercise of 2020 Warrants (in shares) | 9,287,347,000 | |||||||
Cashless exercise of 2020 Warrants | 0 | $ 93 | (93) | |||||
Director share grants and employee non-cash stock-based compensation (in shares) | 211,614,000 | |||||||
Director share grants and employee non-cash stock-based compensation | 5,882 | 5,882 | $ 1 | 9,044 | (3,163) | |||
Comprehensive income (loss) | ||||||||
Net income (loss) | 697,825 | 687,388 | 687,388 | 10,437 | ||||
Unrealized gain (loss) on available-for-sale securities, net | 1,358 | 1,358 | 1,358 | |||||
Comprehensive income | $ 699,183 | 688,746 | 10,437 | |||||
Preferred stock, shares outstanding, ending balance (in shares) at Sep. 30, 2023 | 51,964,122 | 51,964,122,000 | ||||||
Common stock, shares outstanding ending balance (in shares) at Sep. 30, 2023 | 483,214,061 | 483,214,061,000 | ||||||
Equity, ending balance at Sep. 30, 2023 | $ 7,267,963 | 7,208,056 | $ 1,257,254 | $ 4,833 | 6,070,970 | (164,010) | 39,009 | 59,907 |
Preferred stock, shares outstanding, beginning balance (in shares) at Jun. 30, 2023 | 51,964,122,000 | |||||||
Common stock, shares outstanding beginning balance (in shares) at Jun. 30, 2023 | 483,320,606,000 | |||||||
Equity, beginning balance at Jun. 30, 2023 | 7,194,684 | 7,134,433 | $ 1,257,254 | $ 4,834 | 6,068,613 | (236,222) | 39,954 | 60,251 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared on common stock | (120,804) | (120,804) | (120,804) | |||||
Dividends declared on preferred stock | (22,395) | (22,395) | (22,395) | |||||
Capital distributions | (5,192) | (5,192) | ||||||
Director share grants and employee non-cash stock-based compensation (in shares) | (106,545,000) | |||||||
Director share grants and employee non-cash stock-based compensation | 1,424 | 1,424 | $ (1) | 2,357 | (932) | |||
Comprehensive income (loss) | ||||||||
Net income (loss) | 221,191 | 216,343 | 216,343 | 0 | 4,848 | |||
Unrealized gain (loss) on available-for-sale securities, net | (945) | (945) | (945) | |||||
Comprehensive income | $ 220,246 | 215,398 | 4,848 | |||||
Preferred stock, shares outstanding, ending balance (in shares) at Sep. 30, 2023 | 51,964,122 | 51,964,122,000 | ||||||
Common stock, shares outstanding ending balance (in shares) at Sep. 30, 2023 | 483,214,061 | 483,214,061,000 | ||||||
Equity, ending balance at Sep. 30, 2023 | $ 7,267,963 | $ 7,208,056 | $ 1,257,254 | $ 4,833 | $ 6,070,970 | $ (164,010) | $ 39,009 | $ 59,907 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Cash Flows From Operating Activities | |||
Net income | $ 697,825 | $ 877,452 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Change in fair value of investments, net | 516,114 | (587,181) | |
Change in fair value of equity investments | 27,509 | 8,535 | |
Change in fair value of secured notes and bonds payable | (5,890) | (50,279) | |
(Gain) loss on settlement of investments, net | (402,449) | 843,837 | |
(Gain) loss on sale of originated residential mortgage loans, held-for-sale, net | (410,320) | (980,266) | |
(Gain) loss on transfer of loans to REO | (10,120) | (6,263) | |
Accretion and other amortization | (85,063) | (45,230) | |
Provision (reversal) for credit losses on securities, loans and real estate owned | 6,455 | 14,272 | |
Non-cash portions of servicing revenue, net | 158,344 | (890,281) | |
Deferred tax provision | 86,324 | 297,517 | |
Mortgage loans originated and purchased for sale, net of fees | (30,003,362) | (65,446,856) | |
Sales proceeds and loan repayment proceeds for residential mortgage loans, held-for-sale | 30,494,925 | 72,072,003 | |
Interest received from servicer advance investments, RMBS, loans and other | 42,932 | 46,797 | |
Changes in: | |||
Servicer advances receivable, net | 339,610 | 332,902 | |
Other assets | 15,312 | (54,235) | |
Due to affiliate | 0 | (17,819) | |
Accrued expenses and other liabilities | 199,341 | 317,256 | |
Net cash provided by (used in) operating activities | 1,667,487 | 6,732,161 | |
Cash Flows From Investing Activities | |||
Purchase of servicer advance investments | (644,594) | (744,671) | |
Purchase of RMBS | (4,094,458) | (9,597,580) | |
Purchase of U.S. Treasury Bills | (973,795) | 0 | |
Purchase of residential mortgage loans | (1,269) | (7,182) | |
Purchase of SFR properties, real estate owned and other assets | (72,503) | (396,981) | |
Purchase of mortgage loans receivable | (146,631) | 0 | |
Draws on revolving consumer loans | (20,675) | (22,070) | |
Net settlement of derivatives | 390,415 | 282,827 | |
Return of investments in Excess MSRs | 23,066 | 12,264 | |
Principal repayments from servicer advance investments | 675,261 | 791,653 | |
Principal repayments from RMBS | 514,553 | 915,913 | |
Principal repayments from residential mortgage loans | 35,064 | 69,020 | |
Principal repayments from consumer loans | 267,820 | 112,228 | |
Proceeds from sale of MSRs and MSR financing receivables | 705,300 | 3,975 | |
Proceeds from sale of RMBS | 1,868,702 | 7,716,127 | |
Proceeds from sale of real estate owned | 19,806 | 9,652 | |
Net cash provided by (used in) investing activities | (1,453,938) | (854,825) | |
Cash Flows From Financing Activities | |||
Repayments of secured financing agreements | (31,733,802) | (39,920,856) | |
Repayments of warehouse credit facilities | (31,076,021) | (73,028,747) | |
Net settlement of margin deposits under repurchase agreements and derivatives | (676,511) | 1,007,970 | |
Repayments of secured notes and bonds payable | (5,024,509) | (3,174,439) | |
Deferred financing fees | (7,084) | (8,992) | |
Dividends paid on common and preferred stock | (427,583) | (417,445) | |
Borrowings under secured financing agreements | 34,530,433 | 39,713,905 | |
Borrowings under warehouse credit facilities | 30,625,465 | 66,296,292 | |
Borrowings under secured notes and bonds payable | 3,561,756 | 4,101,314 | |
Repurchase of preferred stock | 0 | (3,814) | |
Noncontrolling interest in equity of consolidated subsidiaries - distributions | (17,597) | (21,391) | |
Net cash provided by (used in) financing activities | (245,453) | (5,456,203) | |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (31,904) | 421,133 | |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 1,617,634 | 1,528,442 | |
Cash, Cash Equivalents and Restricted Cash, End of Period | 1,585,730 | 1,949,575 | |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the period for interest | 893,204 | 468,991 | |
Cash paid during the period for income taxes | 1,798 | 1,757 | |
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||
Dividends declared but not paid on common and preferred stock | 143,199 | 140,856 | |
Transfer from residential mortgage loans to real estate owned and other assets | 21,135 | 10,762 | |
Real estate securities retained from loan securitizations | 15,241 | 167,246 | |
Residential mortgage loans subject to repurchase | 1,443,546 | [1] | 1,897,142 |
Purchase of Agency RMBS, settled after quarter-end | 0 | 498,933 | |
Cashless exercise of 2020 warrants (par) | 93 | 0 | |
Seller financing in Marcus acquisition | $ 1,317,347 | $ 0 | |
[1]See Note 5 for details. |
BUSINESS AND ORGANIZATION
BUSINESS AND ORGANIZATION | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS AND ORGANIZATION | BUSINESS AND ORGANIZATION Rithm Capital Corp. (together with its consolidated subsidiaries, “Rithm Capital,” or the “Company”) is a Delaware corporation that is primarily focused on managing assets and investments in the real estate and financial services sectors. Rithm Capital was formed as a limited liability company in September 2011 (commenced operations on December 8, 2011) for the purpose of making real estate and financial related investments. Rithm Capital is an independent publicly traded Real Estate Investment Trust (“REIT”). Rithm Capital’s investment portfolio is composed of mortgage servicing related assets (full and excess mortgage servicing rights (“MSRs”) and servicer advances), residential securities (and associated call rights), loans (mortgage, consumer and business purpose loans), single-family rental properties and commercial real estate. Rithm Capital’s investments in operating entities include leading origination and servicing platforms held through its wholly-owned subsidiaries, Newrez LLC (“Newrez”) and Caliber Home Loans Inc. (“Caliber,” and together with Newrez, the “Mortgage Company”) and Genesis Capital LLC (“Genesis”), as well as investments in affiliated businesses that provide mortgage related services. Prior to June 17, 2022, Rithm Capital operated under a management agreement (the “Management Agreement”) with FIG LLC (the “Former Manager”), an affiliate of Fortress Investment Group LLC. For its services, the Former Manager was entitled to management fees and incentive compensation, both defined in, and in accordance with the terms of, the Management Agreement. On June 17, 2022, Rithm Capital entered into an Internalization Agreement with the Former Manager (the “Internalization Agreement”), pursuant to which the Management Agreement was terminated effective June 17, 2022 (the “Effective Date”), except that certain indemnification and other obligations survive, and the Company internalized its management functions in accordance with the Internalization Agreement (such transactions, the “Internalization”). As a result of the Internalization, Rithm Capital ceased to be externally managed, and following the Internalization, Rithm Capital operates as an internally managed REIT. In connection with the termination of the Management Agreement, the Company agreed to pay the Former Manager $400.0 million (subject to certain adjustments). Following the Internalization, the Company no longer pays a management or incentive fee to the Former Manager. Rithm Capital has elected and intends to qualify to be taxed as a REIT for U.S. federal income tax purposes. As such, Rithm Capital will generally not be subject to U.S. federal corporate income tax on that portion of its net income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. See Note 24, Income Taxes, for additional information regarding Rithm Capital’s taxable REIT subsidiaries. Rithm Capital, through its wholly-owned subsidiaries New Residential Mortgage LLC (“NRM”) and the Mortgage Company, is licensed or otherwise eligible to service residential mortgage loans in all states within the United States and the District of Columbia. NRM and the Mortgage Company are also approved to service mortgage loans on behalf of investors, including the GSEs, and in the case of the Mortgage Company, Ginnie Mae. The Mortgage Company is also eligible to perform servicing on behalf of other servicers (subservicing) and investors. The Mortgage Company sells substantially all of the mortgage loans that it originates into the secondary market. The Mortgage Company securitizes loans into RMBS through the GSEs and Ginnie Mae. Loans originated outside of the GSEs, guidelines of the Federal Housing Administration (“FHA”), United States Department of Agriculture (“USDA”) or Department of Veterans Affairs (“VA”) (for loans securitized with Ginnie Mae) are sold to private investors and mortgage conduits. The Mortgage Company generally retains the right to service the underlying residential mortgage loans sold and securitized by the Mortgage Company. NRM and the Mortgage Company are required to conduct aspects of their operations in accordance with applicable policies and guidelines. Additionally, the Company owns the following affiliated businesses which provide mortgage related services to the Mortgage Company: eStreet Appraisal Management, LLC (“eStreet”) a provider of appraisal valuation services and Avenue 365 Lender Services, LLC (“Avenue 365”) a provider of title insurance and settlement services. The Company also owns operating companies which support its single-family rental (“SFR”) portfolio and MSR investments. Genesis is a lender specializing in providing capital to developers of new construction, fix and flip and rental hold projects across the residential spectrum (including single-family, multi-family and production home building.) Genesis supports the Company's single-family rental strategy operated by Adoor LLC (“Adoor”). Adoor is a wholly-owned subsidiary focused on the acquisition and management of SFR properties. Rithm Capital, through its wholly-owned subsidiary Guardian Asset Management (“Guardian”), provides property preservation and maintenance services for residential properties. As of September 30, 2023, Rithm Capital conducted its business through the following segments: (i) Origination, (ii) Servicing, (iii) MSR Related Investments, (iv) Residential Securities, Properties and Loans, (v) Consumer Loans, (vi) Mortgage Loans Receivable and (vii) Corporate. Agreement to Acquire Sculptor Capital Management, Inc. On July 23, 2023, Rithm Capital and certain of its affiliates entered into an Agreement and Plan of Merger (including the schedules and exhibits thereto, and as it may be amended from time to time, including by the First Amendment and the Second Amendment (each as defined below), the “Merger Agreement”) with Sculptor Capital Management, Inc. (“Sculptor”) and certain of its affiliates. Pursuant to the original Merger Agreement, Rithm Capital was to acquire Sculptor in a transaction valued at approximately $639 million, which included $11.15 per Class A common share of Sculptor. On October 12, 2023, Rithm Capital entered into the First Amendment to amend the Merger Agreement to reflect, among other things, an updated transaction value of approximately $676 million, which included an increase to $12.00 per Class A common share of Sculptor. Additionally, on October 26, 2023, Rithm Capital entered into the Second Amendment to further amend the Merger Agreement to reflect, among other things, an updated transaction value of approximately $719.8 million, which includes an increase to $12.70 per Class A common share of Sculptor (including related transactions under the Merger Agreement, the “Sculptor Acquisition”). The Sculptor Acquisition is targeted to close in the fourth quarter of 2023, subject to various approvals and customary closing conditions. See Note 25 for further details. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Interim Financial Statements — The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP” or “U.S. GAAP”). In the opinion of management, all adjustments considered necessary for a fair presentation of Rithm Capital’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The Consolidated Financial Statements include the accounts of Rithm Capital and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. Rithm Capital consolidates those entities in which it has control over significant operating, financing and investing decisions of the entity, as well as those entities deemed to be VIEs in which Rithm Capital is determined to be the primary beneficiary. For entities over which Rithm Capital exercises significant influence, but which do not meet the requirements for consolidation, Rithm Capital uses the equity method of accounting whereby it records its share of the underlying income of such entities. Distributions from equity method investees are classified in the Consolidated Statements of Cash Flows based on the cumulative earnings approach, where all distributions up to cumulative earnings are classified as distributions of earnings. Reclassifications — Certain prior period amounts in Rithm Capital’s Consolidated Financial Statements and respective notes have been reclassified to be consistent with the current period presentation. Such reclassifications had no impact on net income, total assets, total liabilities or stockholders’ equity. Impairment of Long-Lived Assets — The Company reviews long-lived assets for impairment when events or changes in circumstances indicate the carrying value of these assets may exceed their current fair values. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment charges were recognized on long-lived assets for the three months and nine months ended September 30, 2023. In the future, if events or market conditions affect the estimated fair value to the extent that a long-lived asset is impaired, the Company will adjust the carrying value of these long-lived assets in the period in which the impairment occurs. Risks and Uncertainties — In the normal course of business, Rithm Capital encounters primarily two significant types of economic risk: credit risk and market risk. Credit risk is the risk of default on Rithm Capital’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of investments due to changes in prepayment rates, interest rates, spreads or other market factors, including risks that impact the value of the collateral underlying Rithm Capital’s investments. Taking into consideration these risks along with estimated prepayments, financings, collateral values, payment histories and other information, Rithm Capital believes that the carrying values of its investments are reasonable. Furthermore, for each of the periods presented, a significant portion of Rithm Capital’s assets are dependent on its servicers’ and subservicers’ ability to perform their obligations servicing the residential mortgage loans underlying Rithm Capital’s Excess MSRs, MSRs, MSR financing receivables, servicer advance investments, Non-Agency RMBS and loans. If a servicer is terminated, Rithm Capital’s right to receive its portion of the cash flows related to interests in servicing related assets may also be terminated. The mortgage and financial sectors operate in a challenging and uncertain economic environment. Financial and real estate companies continue to be affected by, among other things, market volatility, rapidly rising interest rates and inflationary pressures. Should macroeconomic conditions continue to worsen, there is no assurance that such conditions will not result in an overall decline in the fair value of many assets, including those in which the Company invests, and potential impairment of the carrying value of goodwill or other intangible assets. The ultimate duration and impact of the current economic environment remain uncertain. Rithm Capital is subject to significant tax risks. If Rithm Capital were to fail to qualify as a REIT in any taxable year, Rithm Capital would be subject to U.S. federal corporate income tax (including any applicable alternative minimum tax), which could be material. Unless entitled to relief under certain statutory provisions, Rithm Capital would also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification is lost. Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Recent Accounting Pronouncements — In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The standard was issued to ease the accounting effects of reform to the London Interbank Offered Rate (“LIBOR”) and other reference rates. The standard provides optional expedients and exceptions for applying GAAP to debt, derivatives and other contracts affected by reference rate reform. The standard was effective for all entities as of March 12, 2020 through December 31, 2022 and was able to be elected over time as reference rate reform activities occur. Additionally, in December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 . The standard defers the expiration date of ASC 848 from December 31, 2022 to December 31, 2024. ASU 2022-06 became effective upon issuance. As of June 30, 2023, the Company has transitioned from LIBOR to an alternative benchmark. The Company's financing arrangements have provisions in place that provide for an alternative to LIBOR. In addition, the Company has amended terms of certain financing arrangements, where necessary, to transition or direct the transition to an alternative benchmark. The Company does not currently intend to amend the 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series A”), the 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series B”), or the 6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series C”) to change the existing USD-LIBOR cessation fallback language. In March 2022, the FASB issued ASU 2022-01, Derivative and Hedging (Topic 815): Fair Value Hedging–Portfolio Layer Method . The standard clarifies the accounting and promotes consistency in reporting for hedges where the portfolio layer method is applied. The new standard is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company’s adoption of the new standard did not have a material effect on its Consolidated Financial Statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The standard clarifies that a contractual restriction on the sale of an equity security is not considered in measuring the security’s fair value. The standard also requires certain disclosures for equity securities that are subject to contractual restrictions. The new standard is effective for fiscal years beginning after December 15, |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING At September 30, 2023, Rithm Capital’s reportable segments include (i) Origination, (ii) Servicing, (iii) MSR Related Investments, (iv) Residential Securities, Properties and Loans, (v) Consumer Loans, (vi) Mortgage Loans Receivable and (vii) Corporate. The Corporate segment primarily consists of general and administrative expenses, corporate cash and related interest income, unsecured senior notes (Note 18) and related interest expense. The following tables summarize segment financial information, which in total reconciles to the same data for Rithm Capital as a whole: Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing Real Estate Securities Properties and Residential Mortgage Loans Consumer Loans Mortgage Loans Receivable Corporate Total Three Months Ended September 30, 2023 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ — $ 372,979 $ 69,665 $ 442,644 $ — $ — $ — $ — $ — $ 442,644 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(138,993)) — 95,507 (74,573) 20,934 — — — — — 20,934 Servicing revenue, net — 468,486 (4,908) 463,578 — — — — — 463,578 Interest income 29,140 127,467 35,339 191,946 140,119 23,993 58,946 59,461 2,142 476,607 Gain on originated residential mortgage loans, held-for-sale, net 126,844 17,295 — 144,139 — 5,091 — — — 149,230 Total revenues 155,984 613,248 30,431 799,663 140,119 29,084 58,946 59,461 2,142 1,089,415 Interest expense 30,725 83,845 33,907 148,477 136,180 30,753 26,285 31,751 9,108 382,554 G&A and other 137,831 103,728 66,275 307,834 1,009 13,531 4,542 15,524 34,184 376,624 Total operating expenses 168,556 187,573 100,182 456,311 137,189 44,284 30,827 47,275 43,292 759,178 Realized and unrealized gains (losses) on investments, net 22 — 10,453 10,475 (127,458) (7,865) (4,111) 1,451 — (127,508) Other income (loss), net 74 (700) 37,412 36,786 (2,644) 40,330 (2,410) 5,369 (6,384) 71,047 Total other income (loss) 96 (700) 47,865 47,261 (130,102) 32,465 (6,521) 6,820 (6,384) (56,461) Income (loss) before income taxes (12,476) 424,975 (21,886) 390,613 (127,172) 17,265 21,598 19,006 (47,534) 273,776 Income tax expense (benefit) (3,125) 59,474 1,946 58,295 — (4,656) 62 (1,116) — 52,585 Net income (loss) (9,351) 365,501 (23,832) 332,318 (127,172) 21,921 21,536 20,122 (47,534) 221,191 Noncontrolling interests in income (loss) of consolidated subsidiaries 269 — 1,414 1,683 — — 3,165 — — 4,848 Dividends on preferred stock — — — — — — — — 22,394 22,394 Net income (loss) attributable to common stockholders $ (9,620) $ 365,501 $ (25,246) $ 330,635 $ (127,172) $ 21,921 $ 18,371 $ 20,122 $ (69,928) $ 193,949 Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing Real Estate Securities Properties and Residential Mortgage Loans Consumer Loans Mortgage Loans Receivable Corporate Total Nine Months Ended September 30, 2023 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ — $ 1,082,257 $ 295,788 $ 1,378,045 $ — $ — $ — $ — $ — $ 1,378,045 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(384,094)) — 103,748 (203,086) (99,338) — — — — — (99,338) Servicing revenue, net — 1,186,005 92,702 1,278,707 — — — — — 1,278,707 Interest income 81,225 314,387 95,520 491,132 376,842 73,050 97,634 176,607 6,742 1,222,007 Gain on originated residential mortgage loans, held-for-sale, net 373,796 22,882 — 396,678 1,247 12,395 — — — 410,320 Total revenues 455,021 1,523,274 188,222 2,166,517 378,089 85,445 97,634 176,607 6,742 2,911,034 Interest expense 89,333 246,525 95,977 431,835 350,044 87,775 32,280 91,725 27,121 1,020,780 G&A and other 421,407 298,636 210,811 930,854 3,199 36,303 9,042 46,550 77,825 1,103,773 Total operating expenses 510,740 545,161 306,788 1,362,689 353,243 124,078 41,322 138,275 104,946 2,124,553 Realized and unrealized gains (losses) on investments, net 78 195 8,366 8,639 (96,015) (22,228) (14,095) 9,967 — (113,732) Other income (loss), net (261) (18,971) 107,761 88,529 (4,514) 82,509 (5,736) 6,260 (49,663) 117,385 Total other income (loss) (183) (18,776) 116,127 97,168 (100,529) 60,281 (19,831) 16,227 (49,663) 3,653 Income (loss) before income taxes (55,902) 959,337 (2,439) 900,996 (75,683) 21,648 36,481 54,559 (147,867) 790,134 Income tax expense (benefit) (14,003) 115,887 (2,117) 99,767 — (3,436) 169 (4,191) — 92,309 Net income (loss) (41,899) 843,450 (322) 801,229 (75,683) 25,084 36,312 58,750 (147,867) 697,825 Noncontrolling interests in income (loss) of consolidated subsidiaries 613 — 2,113 2,726 — — 7,711 — — 10,437 Dividends on preferred stock — — — — — — — — 67,184 67,184 Net income (loss) attributable to common stockholders $ (42,512) $ 843,450 $ (2,435) $ 798,503 $ (75,683) $ 25,084 $ 28,601 $ 58,750 $ (215,051) $ 620,204 Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing Real Estate Securities Properties and Residential Mortgage Loans Consumer Loans Mortgage Loans Receivable Corporate Total September 30, 2023 Investments $ 1,545,881 $ 7,823,376 $ 1,114,249 $ 10,483,506 $ 10,193,596 $ 2,393,549 $ 1,436,080 $ 2,135,424 $ — $ 26,642,155 Cash and cash equivalents 211,544 417,092 233,556 862,192 328,794 2,315 533 19,411 4,038 1,217,283 Restricted cash 25,967 139,829 119,150 284,946 3,543 14,501 19,703 45,754 — 368,447 Other assets 135,339 2,714,592 2,323,689 5,173,620 830,971 115,413 94,540 99,095 118,805 6,432,444 Goodwill 11,836 12,540 5,092 29,468 — — — 55,731 — 85,199 Total assets $ 1,930,567 $ 11,107,429 $ 3,795,736 $ 16,833,732 $ 11,356,904 $ 2,525,778 $ 1,550,856 $ 2,355,415 $ 122,843 $ 34,745,528 Debt $ 1,467,620 $ 4,498,335 $ 2,443,876 $ 8,409,831 $ 10,227,701 $ 1,943,551 $ 1,269,768 $ 1,719,384 $ 546,374 $ 24,116,609 Other liabilities 171,398 2,374,139 33,624 2,579,161 148,823 403,021 9,092 25,532 195,327 3,360,956 Total liabilities 1,639,018 6,872,474 2,477,500 10,988,992 10,376,524 2,346,572 1,278,860 1,744,916 741,701 27,477,565 Total equity 291,549 4,234,955 1,318,236 5,844,740 980,380 179,206 271,996 610,499 (618,858) 7,267,963 Noncontrolling interests in equity of consolidated subsidiaries 9,073 — 12,600 21,673 — — 38,234 — — 59,907 Total Rithm Capital stockholders’ equity $ 282,476 $ 4,234,955 $ 1,305,636 $ 5,823,067 $ 980,380 $ 179,206 $ 233,762 $ 610,499 $ (618,858) $ 7,208,056 Investments in equity method investees $ — $ — $ 65,212 $ 65,212 $ — $ — $ — $ — $ 34,140 $ 99,352 Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing Real Estate Securities Properties and Residential Mortgage Loans Consumer Loans Mortgage Loans Receivable Corporate Total Three Months Ended September 30, 2022 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ — $ 338,742 $ 114,421 $ 453,163 $ — $ — $ — $ — $ — $ 453,163 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(141,616)) — 39,853 (59,027) (19,174) — — — — — (19,174) Servicing revenue, net — 378,595 55,394 433,989 — — — — — 433,989 Interest income 41,862 55,844 15,401 113,107 76,908 19,186 16,456 42,335 5,387 273,379 Gain on originated residential mortgage loans, held-for-sale, net 214,703 5,980 — 220,683 — (17,204) — — — 203,479 Total revenues 256,565 440,419 70,795 767,779 76,908 1,982 16,456 42,335 5,387 910,847 Interest expense 31,345 56,650 26,033 114,028 51,822 21,242 1,925 18,888 10,184 218,089 G&A and other 283,798 112,731 62,817 459,346 921 12,220 1,991 15,241 15,889 505,608 Total operating expenses 315,143 169,381 88,850 573,374 52,743 33,462 3,916 34,129 26,073 723,697 Realized and unrealized gains (losses) on investments, net — (1) (8,717) (8,718) (130,456) 81,829 (5,845) 29,072 — (34,118) Other income (loss), net 1,368 (4,074) 4,923 2,217 (2,799) 11,448 8,701 5,710 (2,035) 23,242 Total other income (loss) 1,368 (4,075) (3,794) (6,501) (133,255) 93,277 2,856 34,782 (2,035) (10,876) Income (loss) before income taxes (57,210) 266,963 (21,849) 187,904 (109,090) 61,797 15,396 42,988 (22,721) 176,274 Income tax expense (benefit) (14,243) 51,032 (7,197) 29,592 — (5,564) (4) (1,940) — 22,084 Net income (loss) (42,967) 215,931 (14,652) 158,312 (109,090) 67,361 15,400 44,928 (22,721) 154,190 Noncontrolling interests in income (loss) of consolidated subsidiaries 471 — (139) 332 — — 6,975 — — 7,307 Dividends on preferred stock — — — — — — — — 22,427 22,427 Net income (loss) attributable to common stockholders $ (43,438) $ 215,931 $ (14,513) $ 157,980 $ (109,090) $ 67,361 $ 8,425 $ 44,928 $ (45,148) $ 124,456 Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing (A) Real Estate Securities Properties and Residential Mortgage Loans Consumer Loans Mortgage Loans Receivable Corporate Total Nine Months Ended September 30, 2022 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ — $ 1,010,252 $ 368,789 $ 1,379,041 $ — $ — $ — $ — $ — $ 1,379,041 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(522,206)) — 881,183 9,098 890,281 — — — — — 890,281 Servicing revenue, net — 1,891,435 377,887 2,269,322 — — — — — 2,269,322 Interest income 143,449 83,954 42,443 269,846 187,841 68,815 53,498 113,360 17,080 710,440 Gain on originated residential mortgage loans, held-for-sale, net 924,582 83,481 — 1,010,568 — (30,302) — — — 980,266 Total revenues 1,068,031 2,058,870 420,330 3,549,736 187,841 38,513 53,498 113,360 17,080 3,960,028 Interest expense 88,358 131,452 78,186 297,996 81,067 53,442 6,275 38,537 30,434 507,751 G&A and other 1,041,988 321,360 210,774 1,574,122 2,403 47,545 6,405 46,249 478,844 2,155,568 Total operating expenses 1,130,346 452,812 288,960 1,872,118 83,470 100,987 12,680 84,786 509,278 2,663,319 Realized and unrealized gains (losses) on investments, net — (1,812) (12,062) (13,874) (331,019) 100,594 (26,774) 14,417 — (256,656) Other income (loss), net 5,295 2,061 45,099 52,455 (7,526) 55,235 33,198 13,140 (11,540) 134,962 Total other income (loss) 5,295 249 33,037 38,581 (338,545) 155,829 6,424 27,557 (11,540) (121,694) Income (loss) before income taxes (57,020) 1,606,307 164,407 1,716,199 (234,174) 93,355 47,242 56,131 (503,738) 1,175,015 Income tax expense (benefit) (14,086) 363,187 33,766 382,867 — (4,387) 34 (5,563) (75,388) 297,563 Net income (loss) (42,934) 1,243,120 130,641 1,333,332 (234,174) 97,742 47,208 61,694 (428,350) 877,452 Noncontrolling interests in income (loss) of consolidated subsidiaries 2,165 — 130 2,295 — — 24,803 — — 27,098 Dividends on preferred stock — — — — — — — — 67,315 67,315 Net income (loss) attributable to common stockholders $ (45,099) $ 1,243,120 $ 130,511 $ 1,331,037 $ (234,174) $ 97,742 $ 22,405 $ 61,694 $ (495,665) $ 783,039 (A) Includes elimination of intercompany transactions of $2.5 million primarily related to loan sales. Servicing Segment Revenues The table below summarizes the components of servicing segment revenues: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Base servicing MSR-owned assets $ 316,042 $ 284,611 $ 919,913 $ 835,368 Residential whole loans 2,217 2,593 6,553 9,001 Third party 22,316 22,717 67,694 69,439 340,575 309,921 994,160 913,808 Other fees Ancillary and other fees (A) 32,404 28,821 88,097 96,444 Change in fair value due to: Realization of cash flows (115,941) (90,750) (290,990) (341,706) Change in valuation inputs and assumptions and other 211,448 130,603 394,738 1,222,889 Total servicing fees $ 468,486 $ 378,595 $ 1,186,005 $ 1,891,435 Servicing data – unpaid principal balance (“UPB”) (period end) (in millions) UPB – MSR-owned assets $ 455,237 $ 401,826 $ 455,237 $ 401,826 UPB – Residential whole loans 8,480 9,930 8,480 9,930 UPB – Third party 99,372 91,820 99,372 91,820 |
EXCESS MORTGAGE SERVICING RIGHT
EXCESS MORTGAGE SERVICING RIGHTS | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
EXCESS MORTGAGE SERVICING RIGHTS | EXCESS MORTGAGE SERVICING RIGHTS Excess mortgage servicing rights assets include Rithm Capital’s direct investments in Excess MSRs and investments in joint ventures jointly controlled by Rithm Capital and funds managed by the Former Manager investing in Excess MSRs. Our investments in Excess MSR assets are included in Other assets on the Consolidated Balance Sheets. The table below summarizes the components of Excess MSRs: September 30, 2023 December 31, 2022 Direct investments in Excess MSRs $ 217,764 $ 249,366 Excess MSR joint ventures 65,212 72,437 Excess mortgage servicing rights, at fair value $ 282,976 $ 321,803 Direct Investments in Excess MSRs The following table presents activity related to the carrying value of direct investments in Excess MSRs: Total (A) Balance as of December 31, 2022 $ 249,366 Interest income 16,733 Other income 150 Proceeds from repayments (33,901) Proceeds from sales (669) Change in fair value (13,915) Balance as of September 30, 2023 $ 217,764 (A) Underlying loans serviced by Mr. Cooper Group Inc. (“Mr. Cooper”) and SLS. Mr. Cooper or SLS, as applicable, as servicer performs all of the servicing and advancing functions, and retains the ancillary income, servicing obligations and liabilities as the servicer of the underlying loans in the portfolio. Rithm Capital entered into a “recapture agreement” with respect to each of the direct Excess MSR investments serviced by Mr. Cooper and SLS. Under such arrangements, Rithm Capital is generally entitled to a pro rata interest in the Excess MSRs on any refinancing by Mr. Cooper of a loan in the original portfolio. These recapture agreements do not apply to Rithm Capital’s servicer advance investments (Note 6). On October 2, 2023, Rithm Capital entered into a definitive agreement with Computershare Limited to acquire Computershare Mortgage Services Inc. and certain affiliated companies, including SLS, for a purchase price of approximately $720 million (Note 25). The following table summarizes direct investments in Excess MSRs: September 30, 2023 December 31, 2022 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis Carrying Value (B) Carrying Value (B) Rithm Capital (C, D) Former Manager-managed funds Mr. Cooper $ 44,294,807 32.5% – 100.0% (56.4%) 0.0% – 50% 0.0% – 35.0% 6.5 $ 189,814 $ 217,764 $ 249,366 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Carrying value represents the fair value of the pools and recapture agreements, as applicable. (C) Amounts in parentheses represent weighted averages. (D) Rithm Capital is also invested in related servicer advance investments, including the basic fee component of the related MSR as of September 30, 2023 (Note 6) on $15.7 billion UPB underlying these Excess MSRs. Changes in fair value of investments consists of the following: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Original and Recaptured Pools $ (3,498) $ (3,857) $ (13,915) $ (5,421) As of September 30, 2023, a weighted average discount rate of 8.8% was used to value Rithm Capital’s investments in Excess MSRs (directly and through equity method investees). Excess MSR Joint Ventures Rithm Capital entered into investments in joint ventures (“Excess MSR joint ventures”) jointly controlled by Rithm Capital and funds managed by the Former Manager investing in Excess MSRs. The following tables summarize the financial results of the Excess MSR joint ventures, accounted for as equity method investees: September 30, 2023 December 31, 2022 Excess MSR $ 120,292 $ 135,356 Other assets 10,818 10,204 Other liabilities (687) (687) Equity $ 130,423 $ 144,873 Rithm Capital’s investment $ 65,212 $ 72,437 Rithm Capital’s percentage ownership 50.0 % 50.0 % Three Months Ended Nine Months Ended 2023 2022 2023 2022 Interest income $ 5,397 $ 4,437 $ 11,079 $ 10,514 Other income (loss) (2,391) (12,074) (6,949) (14,417) Expenses (8) (8) (24) (24) Net income (loss) $ 2,998 $ (7,645) $ 4,106 $ (3,927) The following table summarizes the activity of investments in equity method investees: Balance at December 31, 2022 $ 72,437 Distributions of earnings from equity method investees — Distributions of capital from equity method investees (9,278) Change in fair value of investments in equity method investees 2,053 Balance at September 30, 2023 $ 65,212 The following is a summary of Excess MSR investments made through equity method investees: September 30, 2023 Unpaid Principal Balance Investee Interest in Excess MSR (A) Rithm Capital Interest in Investees Amortized Cost Basis (B) Carrying Value (C) Weighted Average Life (Years) (D) Agency Original and Recaptured Pools $ 17,693,521 66.7 % 50.0 % $ 98,681 $ 120,292 5.4 (A) The remaining interests are held by Mr. Cooper. (B) Represents the amortized cost basis of the equity method investees in which Rithm Capital holds a 50% interest. (C) Represents the carrying value of the Excess MSRs held in equity method investees, in which Rithm Capital holds a 50% interest. Carrying value represents the fair value of the pools, as applicable. (D) Represents the weighted average expected timing of the receipt of cash flows of each investment. The following table summarizes activity related to MSRs and MSR financing receivables: Balance as of December 31, 2022 $ 8,889,403 Purchases, net (A) — Originations (B) 609,460 Proceeds from sales (C) (704,657) Change in fair value due to: Realization of cash flows (D) (384,094) Change in valuation inputs and assumptions 284,756 Balance at September 30, 2023 $ 8,694,868 (A) Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection. (B) Represents MSRs retained on the sale of originated residential mortgage loans. (C) Relates primarily to excess servicing cash flows sold on certain agency loans with a total UPB of approximately $91.4 billion during the nine months ended September 30, 2023. In connection with these sales, the Company recorded a gain of approximately $5.2 million during the period, which is included within change in fair value of MSRs and MSR financing receivables in the Consolidated Statements of Operations. (D) Based on the paydown of the underlying residential mortgage loans. The following table summarizes components of servicing revenue, net: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 412,386 $ 419,793 $ 1,284,583 $ 1,276,137 Ancillary and other fees 30,258 33,370 93,462 102,904 Servicing fee revenue, net and fees 442,644 453,163 1,378,045 1,379,041 Change in fair value due to: Realization of cash flows (138,993) (141,616) (384,094) (522,206) Change in valuation inputs and assumptions, net of realized gains (losses) 159,927 143,174 284,756 1,502,844 Change in fair value of derivative instruments — (18,505) — (11,316) Gain (loss) on settlement of derivative instruments — (2,227) — (79,041) Servicing revenue, net $ 463,578 $ 433,989 $ 1,278,707 $ 2,269,322 The following table summarizes MSRs and MSR financing receivables by type as of September 30, 2023: UPB of Underlying Mortgages Weighted Average Life (Years) (A) Carrying Value (B) Agency $ 354,510,758 8.1 $ 5,393,329 Non-Agency 50,056,162 6.9 704,873 Ginnie Mae (C) 126,354,300 7.7 2,596,666 Total/Weighted Average $ 530,921,220 7.9 $ 8,694,868 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Carrying value represents fair value. As of September 30, 2023, weighted average discount rates of 8.5% (range of 7.9% – 10.8%) were used to value Rithm Capital’s MSRs and MSR financing receivables. (C) As of September 30, 2023, Rithm Capital holds approximately $1.4 billion in residential mortgage loans subject to repurchase and the related residential mortgage loans repurchase liability on its Consolidated Balance Sheets. Residential Mortgage Loans Subject to Repurchase Rithm Capital, through its wholly-owned subsidiaries as approved issuers of Ginnie Mae MBS, originates and securitizes government-insured residential mortgage loans. As the issuer of the Ginnie Mae-guaranteed securitizations, Rithm Capital has the unilateral right to repurchase loans from the securitizations when they are delinquent for more than 90 days. Loans in forbearance that are three or more consecutive payments delinquent are included as delinquent loans permitted to be repurchased. Under GAAP, Rithm Capital is required to recognize the right to loans on its balance sheet and establish a corresponding liability upon the triggering of the repurchase right regardless of whether the Company intends to repurchase the loans. As of September 30, 2023, Rithm Capital holds approximately $1.4 billion in residential mortgage loans subject to repurchase and residential mortgage loans repurchase liability on its Consolidated Balance Sheets. Rithm Capital may re-pool repurchased loans into new Ginnie Mae securitizations upon re-performance of the loan or otherwise sell to third-party investors. The Company does not change the accounting for MSRs related to previously sold loans upon recognizing loans eligible for repurchase. Rather, upon repurchase of a loan, the MSR is written off. As of September 30, 2023, Rithm Capital holds approximately $0.4 billion of Ginnie Mae repurchased residential mortgage loans on its Consolidated Balance Sheets. Ocwen MSR Financing Receivable Transactions In July 2017, Ocwen Loan Servicing, LLC (collectively with certain affiliates, “Ocwen”) and Rithm Capital entered into an agreement in which both parties agreed to undertake certain actions to facilitate the transfer from Ocwen to Rithm Capital of Ocwen’s remaining interests in the MSRs relating to loans with an aggregate unpaid principal balance of approximately $110.0 billion and with respect to which Rithm Capital already held certain rights (“Rights to MSRs”). Ocwen and Rithm Capital concurrently entered into a subservicing agreement pursuant to which Ocwen agreed to subservice the mortgage loans related to the MSRs that were transferred to Rithm Capital. In January 2018, Ocwen sold and transferred to Rithm Capital certain Rights to MSRs and other assets related to mortgage servicing rights for loans with an unpaid principal balance of approximately $86.8 billion. PHH (as successor by merger to Ocwen) will continue to service the residential mortgage loans related to the MSRs until any necessary third-party consents to transferring the MSRs are obtained and all other conditions to transferring the MSRs are satisfied. Of the Rights to MSRs sold and transferred to NRM and Newrez, consents and all other conditions to transfer have been received with respect to approximately $66.7 billion UPB of underlying loans. Although legally sold and entitled to the economics of the transfer, as of September 30, 2023, with respect to MSRs representing approximately $11.6 billion UPB of underlying loans, it was determined for accounting purposes that substantially all of the risks and rewards inherent in owning the MSRs had not been transferred to Newrez and therefore are not treated as a sale under GAAP and are classified as MSR financing receivables. The table below summarizes the geographic distribution of the underlying residential mortgage loans of the MSRs and MSR financing receivables: Percentage of Total Outstanding Unpaid Principal Amount State Concentration September 30, 2023 December 31, 2022 California 17.1 % 17.4 % Florida 8.6 % 8.6 % Texas 6.2 % 6.2 % New York 6.0 % 6.0 % Washington 5.8 % 5.9 % New Jersey 4.3 % 4.4 % Virginia 3.6 % 3.6 % Maryland 3.4 % 3.4 % Illinois 3.3 % 3.4 % Georgia 3.0 % 2.9 % Other U.S. 38.7 % 38.2 % 100.0 % 100.0 % Geographic concentrations of investments expose Rithm Capital to the risk of economic downturns within the relevant states. Any such downturn in a state where Rithm Capital holds significant investments could affect the underlying borrower’s ability to make mortgage payments and therefore could have a meaningful, negative impact on the MSRs. Residential Mortgage Loan Subservicing The Mortgage Company performs servicing of residential mortgage loans for unaffiliated parties under servicing agreements. The servicing agreements do not meet the criteria to be recognized as a servicing right asset and, therefore, are not recognized on Rithm Capital’s Consolidated Balance Sheets. The UPB of residential mortgage loans serviced for others as of September 30, 2023 and 2022 was $99.4 billion and $91.8 billion, respectively. Rithm Capital earned servicing revenue of $104.0 million and $100.4 million for the nine months ended September 30, 2023 and 2022, respectively, related to unaffiliated serviced loans which is included within Servicing Revenue, Net in the Consolidated Statements of Operations. Rithm Capital engages unaffiliated licensed mortgage servicers as subservicers and, in relation to certain owned MSRs, including to perform the operational servicing duties, including recapture activities in exchange for a subservicing fee which is recorded as Subservicing Expense and reflected as part of General and Administrative expenses in Rithm Capital’s Consolidated Statements of Operations. As of September 30, 2023, these subservicers include PHH, Valon and Loancare which subservice 8.7%, 3.9% and 1.6%, respectively, of the MSRs owned by Rithm Capital. The remaining 85.8% of owned MSRs are serviced by the Mortgage Company (Note 1). During the nine months ended September 30, 2023, Rithm Capital notified Mr. Cooper, LoanCare and Flagstar that their respective subservicing agreements would not be renewed and servicing related to loans subserviced by Mr. Cooper, LoanCare and Flagstar would be transferred to the Mortgage Company. As of September 30, 2023, no loans in relation to owned MSRs were subserviced by Mr. Cooper and Flagstar. Servicer Advances Receivable In connection with Rithm Capital’s ownership of MSRs, the Company assumes the obligation to serve as a liquidity provider to initially fund servicer advances on the underlying pool of mortgages (Note 22) it services. These servicer advances are recorded when advanced and are included in servicer advances receivable on the Consolidated Balance Sheets. The table below summarizes the type of advances included in the servicer advances receivable: September 30, 2023 December 31, 2022 Principal and interest advances $ 579,277 $ 664,495 Escrow advances (taxes and insurance advances) 1,093,779 1,426,409 Foreclosure advances 833,680 754,073 Total (A)(B)(C) $ 2,506,736 $ 2,844,977 (A) Includes $426.5 million and $526.5 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B) Includes $296.1 million and $261.8 million of servicer advances receivable related to Ginnie Mae MSRs, respectively, recoverable from either the borrower or Ginnie Mae. Expected losses for advances associated with Ginnie Mae loans in the MSR portfolio are considered in the MSR fair valuation through a non-reimbursable advance loss assumption. (C) Excludes $72.5 million and $19.5 million, respectively, in unamortized advance discount and reserves, net of accruals for advance recoveries. These reserves relate to inactive loans in the foreclosure or liquidation process. Rithm Capital’s servicer advances receivable related to Non-Agency MSRs generally have the highest reimbursement priority pursuant to the underlying servicing agreements (i.e., “top of the waterfall”) and Rithm Capital is generally entitled to repayment from respective loan or REO liquidation proceeds before any interest or principal is paid on the bonds that were issued by the trust. In the majority of cases, advances in excess of respective loan or REO liquidation proceeds may be recovered from pool-level proceeds. Furthermore, to the extent that advances are not recoverable by Rithm Capital as a result of the subservicer’s failure to comply with applicable requirements in the relevant servicing agreements, Rithm Capital has a contractual right to be reimbursed by the subservicer. For advances on loans that have been liquidated, sold, paid in full or modified, the Company has reserved $108.8 million, or 4.3%, and $65.4 million, or 2.3%, for expected non-recovery of advances as of September 30, 2023 and December 31, 2022, respectively. The following table summarizes servicer advances reserve: Balance at December 31, 2022 $ 65,428 Provision 58,214 Write-offs (14,851) Balance at September 30, 2023 $ 108,791 See Note 18 regarding the financing of MSRs and servicer advances receivable. |
MORTGAGE SERVICING RIGHTS AND M
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing of Financial Assets [Abstract] | |
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES | EXCESS MORTGAGE SERVICING RIGHTS Excess mortgage servicing rights assets include Rithm Capital’s direct investments in Excess MSRs and investments in joint ventures jointly controlled by Rithm Capital and funds managed by the Former Manager investing in Excess MSRs. Our investments in Excess MSR assets are included in Other assets on the Consolidated Balance Sheets. The table below summarizes the components of Excess MSRs: September 30, 2023 December 31, 2022 Direct investments in Excess MSRs $ 217,764 $ 249,366 Excess MSR joint ventures 65,212 72,437 Excess mortgage servicing rights, at fair value $ 282,976 $ 321,803 Direct Investments in Excess MSRs The following table presents activity related to the carrying value of direct investments in Excess MSRs: Total (A) Balance as of December 31, 2022 $ 249,366 Interest income 16,733 Other income 150 Proceeds from repayments (33,901) Proceeds from sales (669) Change in fair value (13,915) Balance as of September 30, 2023 $ 217,764 (A) Underlying loans serviced by Mr. Cooper Group Inc. (“Mr. Cooper”) and SLS. Mr. Cooper or SLS, as applicable, as servicer performs all of the servicing and advancing functions, and retains the ancillary income, servicing obligations and liabilities as the servicer of the underlying loans in the portfolio. Rithm Capital entered into a “recapture agreement” with respect to each of the direct Excess MSR investments serviced by Mr. Cooper and SLS. Under such arrangements, Rithm Capital is generally entitled to a pro rata interest in the Excess MSRs on any refinancing by Mr. Cooper of a loan in the original portfolio. These recapture agreements do not apply to Rithm Capital’s servicer advance investments (Note 6). On October 2, 2023, Rithm Capital entered into a definitive agreement with Computershare Limited to acquire Computershare Mortgage Services Inc. and certain affiliated companies, including SLS, for a purchase price of approximately $720 million (Note 25). The following table summarizes direct investments in Excess MSRs: September 30, 2023 December 31, 2022 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis Carrying Value (B) Carrying Value (B) Rithm Capital (C, D) Former Manager-managed funds Mr. Cooper $ 44,294,807 32.5% – 100.0% (56.4%) 0.0% – 50% 0.0% – 35.0% 6.5 $ 189,814 $ 217,764 $ 249,366 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Carrying value represents the fair value of the pools and recapture agreements, as applicable. (C) Amounts in parentheses represent weighted averages. (D) Rithm Capital is also invested in related servicer advance investments, including the basic fee component of the related MSR as of September 30, 2023 (Note 6) on $15.7 billion UPB underlying these Excess MSRs. Changes in fair value of investments consists of the following: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Original and Recaptured Pools $ (3,498) $ (3,857) $ (13,915) $ (5,421) As of September 30, 2023, a weighted average discount rate of 8.8% was used to value Rithm Capital’s investments in Excess MSRs (directly and through equity method investees). Excess MSR Joint Ventures Rithm Capital entered into investments in joint ventures (“Excess MSR joint ventures”) jointly controlled by Rithm Capital and funds managed by the Former Manager investing in Excess MSRs. The following tables summarize the financial results of the Excess MSR joint ventures, accounted for as equity method investees: September 30, 2023 December 31, 2022 Excess MSR $ 120,292 $ 135,356 Other assets 10,818 10,204 Other liabilities (687) (687) Equity $ 130,423 $ 144,873 Rithm Capital’s investment $ 65,212 $ 72,437 Rithm Capital’s percentage ownership 50.0 % 50.0 % Three Months Ended Nine Months Ended 2023 2022 2023 2022 Interest income $ 5,397 $ 4,437 $ 11,079 $ 10,514 Other income (loss) (2,391) (12,074) (6,949) (14,417) Expenses (8) (8) (24) (24) Net income (loss) $ 2,998 $ (7,645) $ 4,106 $ (3,927) The following table summarizes the activity of investments in equity method investees: Balance at December 31, 2022 $ 72,437 Distributions of earnings from equity method investees — Distributions of capital from equity method investees (9,278) Change in fair value of investments in equity method investees 2,053 Balance at September 30, 2023 $ 65,212 The following is a summary of Excess MSR investments made through equity method investees: September 30, 2023 Unpaid Principal Balance Investee Interest in Excess MSR (A) Rithm Capital Interest in Investees Amortized Cost Basis (B) Carrying Value (C) Weighted Average Life (Years) (D) Agency Original and Recaptured Pools $ 17,693,521 66.7 % 50.0 % $ 98,681 $ 120,292 5.4 (A) The remaining interests are held by Mr. Cooper. (B) Represents the amortized cost basis of the equity method investees in which Rithm Capital holds a 50% interest. (C) Represents the carrying value of the Excess MSRs held in equity method investees, in which Rithm Capital holds a 50% interest. Carrying value represents the fair value of the pools, as applicable. (D) Represents the weighted average expected timing of the receipt of cash flows of each investment. The following table summarizes activity related to MSRs and MSR financing receivables: Balance as of December 31, 2022 $ 8,889,403 Purchases, net (A) — Originations (B) 609,460 Proceeds from sales (C) (704,657) Change in fair value due to: Realization of cash flows (D) (384,094) Change in valuation inputs and assumptions 284,756 Balance at September 30, 2023 $ 8,694,868 (A) Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection. (B) Represents MSRs retained on the sale of originated residential mortgage loans. (C) Relates primarily to excess servicing cash flows sold on certain agency loans with a total UPB of approximately $91.4 billion during the nine months ended September 30, 2023. In connection with these sales, the Company recorded a gain of approximately $5.2 million during the period, which is included within change in fair value of MSRs and MSR financing receivables in the Consolidated Statements of Operations. (D) Based on the paydown of the underlying residential mortgage loans. The following table summarizes components of servicing revenue, net: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 412,386 $ 419,793 $ 1,284,583 $ 1,276,137 Ancillary and other fees 30,258 33,370 93,462 102,904 Servicing fee revenue, net and fees 442,644 453,163 1,378,045 1,379,041 Change in fair value due to: Realization of cash flows (138,993) (141,616) (384,094) (522,206) Change in valuation inputs and assumptions, net of realized gains (losses) 159,927 143,174 284,756 1,502,844 Change in fair value of derivative instruments — (18,505) — (11,316) Gain (loss) on settlement of derivative instruments — (2,227) — (79,041) Servicing revenue, net $ 463,578 $ 433,989 $ 1,278,707 $ 2,269,322 The following table summarizes MSRs and MSR financing receivables by type as of September 30, 2023: UPB of Underlying Mortgages Weighted Average Life (Years) (A) Carrying Value (B) Agency $ 354,510,758 8.1 $ 5,393,329 Non-Agency 50,056,162 6.9 704,873 Ginnie Mae (C) 126,354,300 7.7 2,596,666 Total/Weighted Average $ 530,921,220 7.9 $ 8,694,868 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Carrying value represents fair value. As of September 30, 2023, weighted average discount rates of 8.5% (range of 7.9% – 10.8%) were used to value Rithm Capital’s MSRs and MSR financing receivables. (C) As of September 30, 2023, Rithm Capital holds approximately $1.4 billion in residential mortgage loans subject to repurchase and the related residential mortgage loans repurchase liability on its Consolidated Balance Sheets. Residential Mortgage Loans Subject to Repurchase Rithm Capital, through its wholly-owned subsidiaries as approved issuers of Ginnie Mae MBS, originates and securitizes government-insured residential mortgage loans. As the issuer of the Ginnie Mae-guaranteed securitizations, Rithm Capital has the unilateral right to repurchase loans from the securitizations when they are delinquent for more than 90 days. Loans in forbearance that are three or more consecutive payments delinquent are included as delinquent loans permitted to be repurchased. Under GAAP, Rithm Capital is required to recognize the right to loans on its balance sheet and establish a corresponding liability upon the triggering of the repurchase right regardless of whether the Company intends to repurchase the loans. As of September 30, 2023, Rithm Capital holds approximately $1.4 billion in residential mortgage loans subject to repurchase and residential mortgage loans repurchase liability on its Consolidated Balance Sheets. Rithm Capital may re-pool repurchased loans into new Ginnie Mae securitizations upon re-performance of the loan or otherwise sell to third-party investors. The Company does not change the accounting for MSRs related to previously sold loans upon recognizing loans eligible for repurchase. Rather, upon repurchase of a loan, the MSR is written off. As of September 30, 2023, Rithm Capital holds approximately $0.4 billion of Ginnie Mae repurchased residential mortgage loans on its Consolidated Balance Sheets. Ocwen MSR Financing Receivable Transactions In July 2017, Ocwen Loan Servicing, LLC (collectively with certain affiliates, “Ocwen”) and Rithm Capital entered into an agreement in which both parties agreed to undertake certain actions to facilitate the transfer from Ocwen to Rithm Capital of Ocwen’s remaining interests in the MSRs relating to loans with an aggregate unpaid principal balance of approximately $110.0 billion and with respect to which Rithm Capital already held certain rights (“Rights to MSRs”). Ocwen and Rithm Capital concurrently entered into a subservicing agreement pursuant to which Ocwen agreed to subservice the mortgage loans related to the MSRs that were transferred to Rithm Capital. In January 2018, Ocwen sold and transferred to Rithm Capital certain Rights to MSRs and other assets related to mortgage servicing rights for loans with an unpaid principal balance of approximately $86.8 billion. PHH (as successor by merger to Ocwen) will continue to service the residential mortgage loans related to the MSRs until any necessary third-party consents to transferring the MSRs are obtained and all other conditions to transferring the MSRs are satisfied. Of the Rights to MSRs sold and transferred to NRM and Newrez, consents and all other conditions to transfer have been received with respect to approximately $66.7 billion UPB of underlying loans. Although legally sold and entitled to the economics of the transfer, as of September 30, 2023, with respect to MSRs representing approximately $11.6 billion UPB of underlying loans, it was determined for accounting purposes that substantially all of the risks and rewards inherent in owning the MSRs had not been transferred to Newrez and therefore are not treated as a sale under GAAP and are classified as MSR financing receivables. The table below summarizes the geographic distribution of the underlying residential mortgage loans of the MSRs and MSR financing receivables: Percentage of Total Outstanding Unpaid Principal Amount State Concentration September 30, 2023 December 31, 2022 California 17.1 % 17.4 % Florida 8.6 % 8.6 % Texas 6.2 % 6.2 % New York 6.0 % 6.0 % Washington 5.8 % 5.9 % New Jersey 4.3 % 4.4 % Virginia 3.6 % 3.6 % Maryland 3.4 % 3.4 % Illinois 3.3 % 3.4 % Georgia 3.0 % 2.9 % Other U.S. 38.7 % 38.2 % 100.0 % 100.0 % Geographic concentrations of investments expose Rithm Capital to the risk of economic downturns within the relevant states. Any such downturn in a state where Rithm Capital holds significant investments could affect the underlying borrower’s ability to make mortgage payments and therefore could have a meaningful, negative impact on the MSRs. Residential Mortgage Loan Subservicing The Mortgage Company performs servicing of residential mortgage loans for unaffiliated parties under servicing agreements. The servicing agreements do not meet the criteria to be recognized as a servicing right asset and, therefore, are not recognized on Rithm Capital’s Consolidated Balance Sheets. The UPB of residential mortgage loans serviced for others as of September 30, 2023 and 2022 was $99.4 billion and $91.8 billion, respectively. Rithm Capital earned servicing revenue of $104.0 million and $100.4 million for the nine months ended September 30, 2023 and 2022, respectively, related to unaffiliated serviced loans which is included within Servicing Revenue, Net in the Consolidated Statements of Operations. Rithm Capital engages unaffiliated licensed mortgage servicers as subservicers and, in relation to certain owned MSRs, including to perform the operational servicing duties, including recapture activities in exchange for a subservicing fee which is recorded as Subservicing Expense and reflected as part of General and Administrative expenses in Rithm Capital’s Consolidated Statements of Operations. As of September 30, 2023, these subservicers include PHH, Valon and Loancare which subservice 8.7%, 3.9% and 1.6%, respectively, of the MSRs owned by Rithm Capital. The remaining 85.8% of owned MSRs are serviced by the Mortgage Company (Note 1). During the nine months ended September 30, 2023, Rithm Capital notified Mr. Cooper, LoanCare and Flagstar that their respective subservicing agreements would not be renewed and servicing related to loans subserviced by Mr. Cooper, LoanCare and Flagstar would be transferred to the Mortgage Company. As of September 30, 2023, no loans in relation to owned MSRs were subserviced by Mr. Cooper and Flagstar. Servicer Advances Receivable In connection with Rithm Capital’s ownership of MSRs, the Company assumes the obligation to serve as a liquidity provider to initially fund servicer advances on the underlying pool of mortgages (Note 22) it services. These servicer advances are recorded when advanced and are included in servicer advances receivable on the Consolidated Balance Sheets. The table below summarizes the type of advances included in the servicer advances receivable: September 30, 2023 December 31, 2022 Principal and interest advances $ 579,277 $ 664,495 Escrow advances (taxes and insurance advances) 1,093,779 1,426,409 Foreclosure advances 833,680 754,073 Total (A)(B)(C) $ 2,506,736 $ 2,844,977 (A) Includes $426.5 million and $526.5 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B) Includes $296.1 million and $261.8 million of servicer advances receivable related to Ginnie Mae MSRs, respectively, recoverable from either the borrower or Ginnie Mae. Expected losses for advances associated with Ginnie Mae loans in the MSR portfolio are considered in the MSR fair valuation through a non-reimbursable advance loss assumption. (C) Excludes $72.5 million and $19.5 million, respectively, in unamortized advance discount and reserves, net of accruals for advance recoveries. These reserves relate to inactive loans in the foreclosure or liquidation process. Rithm Capital’s servicer advances receivable related to Non-Agency MSRs generally have the highest reimbursement priority pursuant to the underlying servicing agreements (i.e., “top of the waterfall”) and Rithm Capital is generally entitled to repayment from respective loan or REO liquidation proceeds before any interest or principal is paid on the bonds that were issued by the trust. In the majority of cases, advances in excess of respective loan or REO liquidation proceeds may be recovered from pool-level proceeds. Furthermore, to the extent that advances are not recoverable by Rithm Capital as a result of the subservicer’s failure to comply with applicable requirements in the relevant servicing agreements, Rithm Capital has a contractual right to be reimbursed by the subservicer. For advances on loans that have been liquidated, sold, paid in full or modified, the Company has reserved $108.8 million, or 4.3%, and $65.4 million, or 2.3%, for expected non-recovery of advances as of September 30, 2023 and December 31, 2022, respectively. The following table summarizes servicer advances reserve: Balance at December 31, 2022 $ 65,428 Provision 58,214 Write-offs (14,851) Balance at September 30, 2023 $ 108,791 See Note 18 regarding the financing of MSRs and servicer advances receivable. |
SERVICER ADVANCE INVESTMENTS
SERVICER ADVANCE INVESTMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
SERVICER ADVANCE INVESTMENTS | SERVICER ADVANCE INVESTMENTS Rithm Capital’s servicer advance investments consist of arrangements to fund existing outstanding servicer advances and the requirement to purchase all future servicer advances made with respect to a specified pool of residential mortgage loans in exchange for the basic fee component of the related MSR. Rithm Capital elected to record its servicer advance investments, including the right to the basic fee component of the related MSRs, at fair value pursuant to the fair value option for financial instruments to provide users of the financial statements with better information regarding the effects of market factors. A taxable wholly-owned subsidiary of Rithm Capital is the managing member of Advance Purchaser LLC (the “Advance Purchaser”), a joint venture entity, and owns an approximately 89.3% interest in Advance Purchaser as of September 30, 2023 and December 31, 2022. Advance Purchaser was established in December 2013 for the purpose of investing in residential mortgage related advances. As of September 30, 2023, the noncontrolling third-party co-investors and Rithm Capital have funded their capital commitments; however, Advance Purchaser may recall $71.5 million and $597.9 million of capital distributed to the third-party co-investors and Rithm Capital, respectively. Neither the third-party co-investors nor Rithm Capital is obligated to fund amounts in excess of their respective capital commitments, regardless of the capital requirements of Advance Purchaser. Our servicer advance investments are included in Other assets on the Consolidated Balance Sheets. The following table summarizes servicer advance investments, including the right to the basic fee component of the related MSRs: Amortized Cost Basis Carrying Value (A) Weighted Average Discount Rate Weighted Average Yield Weighted Average Life (Years) (B) September 30, 2023 Servicer advance investments $ 361,325 $ 387,669 6.2 % 7.1 % 8.6 December 31, 2022 Servicer advance investments $ 392,749 $ 398,820 5.7 % 5.6 % 8.4 (A) Represents the fair value of the servicer advance investments, including the basic fee component of the related MSRs. (B) Represents the weighted average expected timing of the receipt of expected net cash flows for this investment. The following table provides additional information regarding the servicer advance investments and related financing: UPB of Underlying Residential Mortgage Loans Outstanding Servicer Advances Servicer Advances to UPB of Underlying Residential Mortgage Loans Face Amount of Secured Notes and Bonds Payable Loan-to-Value (“LTV”) (A) Cost of Funds (C) Gross Net (B) Gross Net September 30, 2023 Servicer advance investments (D) $ 15,654,419 $ 314,165 2.0 % $ 275,952 84.1 % 81.9 % 7.5 % 6.9 % December 31, 2022 Servicer advance investments (D) $ 17,033,753 $ 341,628 2.0 % $ 319,276 90.2 % 88.3 % 6.5 % 5.9 % (A) Based on outstanding servicer advances, excluding purchased but unsettled servicer advances. (B) Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve. (C) Annualized measure of the cost associated with borrowings. Gross cost of funds primarily includes interest expense and facility fees. Net cost of funds excludes facility fees. (D) The following table summarizes the types of advances included in servicer advance investments: September 30, 2023 December 31, 2022 Principal and interest advances $ 55,058 $ 66,892 Escrow advances (taxes and insurance advances) 142,995 155,438 Foreclosure advances 116,112 119,298 Total $ 314,165 $ 341,628 |
REAL ESTATE AND OTHER SECURITIE
REAL ESTATE AND OTHER SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE AND OTHER SECURITIES | REAL ESTATE AND OTHER SECURITIES “Agency” RMBS are RMBS issued by the GSEs or Ginnie Mae. “Non-Agency” RMBS are issued by either public trusts or private label securitization entities. The following table summarizes real estate and other securities for available for sale (“AFS”) and RMBS measured at fair value securities by designation: September 30, 2023 December 31, 2022 Gross Unrealized Weighted Average Outstanding Face Amount Gains Losses Carrying Value (A) Number of Securities Coupon (B) Yield Life (Years) (C) Carrying RMBS Designated as Available for Sale (AFS): Agency (D) $ 75,928 $ — $ — $ 65,093 1 3.5 % 3.5 % 10.9 $ 73,439 Non-Agency (E)(F) 2,516,651 72,278 (32,923) 366,972 333 3.5 % 3.9 % 5.5 397,076 RMBS Measured at Fair Value through Net Income (FVO): Agency (D) 8,655,669 — (253,951) 8,235,153 44 5.2 % 5.2 % 9.6 7,264,978 Non-Agency (E)(F) 14,611,690 59,989 (97,944) 534,256 354 2.9 % 6.6 % 8.1 553,784 Total/Weighted Average $ 25,859,938 $ 132,267 $ (384,818) $ 9,201,474 732 5.2 % 5.2 % 9.9 $ 8,289,277 (A) Fair value is equal to the carrying value for all securities. See Note 19 regarding the fair value measurements. (B) Excludes residual bonds and certain other Non-Agency bonds, with a carrying value of $17.8 million and $0.8 million, respectively, for which no coupon payment is expected. (C) Based on the timing of expected principal reduction on the assets. (D) The total outstanding face amount was $8.7 billion for fixed rate securities as of September 30, 2023. (E) The total outstanding face amount was $7.9 billion (including $7.0 billion of residual and fair value option notional amount) for fixed rate securities and $9.2 billion (including $9.0 billion of residual and fair value option notional amount) for floating rate securities as of September 30, 2023. (F) Includes other asset-backed securities consisting primarily of (i) interest-only securities, servicing strips and commercial mortgage backed securities (fair value option securities), (ii) bonds backed by consumer loans and (iii) corporate debt which Rithm Capital elected to carry at fair value and record changes to valuation through earnings Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Gains Losses Carrying Value Number of Securities Coupon Yield Life (Years) Corporate debt $ 514 $ 3 $ — $ 512 2 8.2 % 9.5 % 1.5 Consumer loan bonds 301 663 — 663 2 N/A N/A 0.1 Fair value option securities: Interest-only securities 9,247,297 33,197 (31,955) 139,108 145 0.8 % 9.5 % 2.4 Servicing strips 4,087,218 17,726 (3,734) 50,737 61 0.2 % 15.2 % 3.9 Commercial Mortgage Backed Securities 3,931 103 — 3,900 2 7.9 % 8.8 % 1.6 The following table summarizes Real Estate and Other Securities for Held to Maturity securities: September 30, 2023 December 31, 2022 Weighted Average Outstanding Face Amount Amortized Cost / Carrying Value Fair Value Unrecognized Gains/(Losses) Number of Securities Yield Life (Years) Carrying Treasury Bills Designated as Held to Maturity (HTM): Treasury $ 1,000,000 $ 992,122 $ 992,183 $ 61 1 5.4 % 0.2 $ — The following table summarizes purchases and sales of Real Estate and Other Securities: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Treasury Agency Non-Agency Agency Non-Agency Treasury Agency Non-Agency Agency Non-Agency Purchases Face $ — $ 1,211.3 $ — $ 9,053.2 $ 906.7 $ 1,000.0 $ 3,373.7 $ 472.6 $ 10,051.4 $ 4,189.8 Purchase price — 1,196.2 — 9,041.6 69.1 973.8 3,350.6 32.6 10,046.1 217.7 Sales Face $ — $ 230.0 $ — $ 7,767.1 $ 15.3 $ — $ 1,692.4 $ — $ 8,596.9 $ 15.3 Amortized cost — 229.8 — 7,987.1 12.0 — 1,672.6 0.2 8,844.1 13.6 Sale price — 219.6 — 6,965.4 12.0 — 1,615.5 — 7,704.3 12.0 Gain (loss) on sale — (10.2) — (1,021.8) (0.1) — (57.1) (0.2) (1,139.9) (1.6) As of September 30, 2023, Rithm Capital had sold $230.0 million face amount of Agency RMBS for $219.6 million which had not yet been settled. As of December 31, 2022, Rithm Capital had purchased $738.4 million face amount of Agency RMBS for $730.0 million and sold $490.8 million face amount of Agency RMBS for $471.6 million which had not yet been settled. Unsettled purchases and sales are recorded on a trade date basis and grouped and presented within Payable for Investments Purchased and Receivable for Investments Sold on the Consolidated Balance Sheets. Rithm Capital has exercised its call rights with respect to Non-Agency RMBS trusts and purchased performing and non-performing residential mortgage loans and REO contained in such trusts prior to their termination. In certain cases, Rithm Capital sold portions of the purchased loans through securitizations and retained bonds issued by such securitizations. In addition, Rithm Capital received par on the securities issued by the called trusts which it owned prior to such trusts’ termination. Refer to Note 8 for further details on these transactions. During the nine months ended September 30, 2023, Rithm Capital purchased $1.0 billion of 6-month U.S. Treasury Bills maturing on November 24, 2023. The following table summarizes certain information for RMBS designated as AFS in an unrealized loss position as of September 30, 2023: Securities in an Unrealized Loss Position Outstanding Face Amount Amortized Cost Basis Gross Unrealized Losses Carrying Value Number of Securities Weighted Average Before Credit Impairment Credit Impairment (A) After Credit Impairment Coupon Yield Life Less than 12 Months $ 79,960 $ 69,392 $ — $ 69,392 $ (6,770) $ 62,622 72 3.1 % 4.0 % 4.7 12 or More Months 306,044 288,367 (14,421) 273,946 (26,153) 247,793 130 3.7 % 3.7 % 7.2 Total/Weighted Average $ 386,004 $ 357,759 $ (14,421) $ 343,338 $ (32,923) $ 310,415 202 3.6 % 3.8 % 6.7 (A) Represents credit impairment on securities in an unrealized loss position as of September 30, 2023. Rithm Capital performed an assessment of all RMBS designated as AFS that are in an unrealized loss position (an unrealized loss position exists when a security’s amortized cost basis, excluding the effect of credit impairment, exceeds its fair value) and determined the following: September 30, 2023 December 31, 2022 Gross Unrealized Losses Gross Unrealized Losses RMBS Designated as AFS Fair Value Amortized Cost Basis After Credit Impairment Credit (A) Non-Credit (B) Fair Value Amortized Cost Basis After Credit Impairment Credit (A) Non-Credit (B) Securities Rithm Capital intends to sell $ — $ — $ — $ — $ — $ — $ — $ — Securities Rithm Capital is more likely than not to be required to sell (C) — — — — — — — — Securities Rithm Capital has no intent to sell and is not more likely than not to be required to sell: Credit impaired securities 69,456 69,833 (14,421) (376) 77,843 78,101 (10,816) (258) Non-credit impaired securities 240,959 273,505 — (32,547) 271,405 304,831 — (33,426) Total debt securities in an unrealized loss position $ 310,415 $ 343,338 $ (14,421) $ (32,923) $ 349,248 $ 382,932 $ (10,816) $ (33,684) (A) Required to be recorded through earnings. In measuring the portion of credit losses, Rithm Capital estimates the expected cash flow for each of the securities. This evaluation included a review of the credit status and the performance of the collateral supporting those securities, including the credit of the issuer, key terms of the securities and the effect of local, industry and broader economic trends. Significant inputs in estimating the cash flows included Rithm Capital’s expectations of prepayment rates, default rates and loss severities. Credit losses were measured as the decline in the present value of the expected future cash flows discounted at the security’s effective interest rate. (B) Represents unrealized losses on securities that are due to non-credit factors. (C) Rithm Capital may, at times, be more likely than not to be required to sell certain securities for liquidity purposes. While the amount of the securities to be sold may be an estimate, and the securities to be sold have not yet been identified, Rithm Capital must make its best estimate, which is subject to significant judgment regarding future events, and may differ materially from actual future sales. The following table summarizes the activity related to the allowance for credit losses on RMBS designated as AFS (excluding credit impairment relating to securities Rithm Capital intends to sell or is more likely than not required to sell): RMBS Designated as AFS Purchased Credit Deteriorated Non-Purchased Credit Deteriorated Total Allowance for credit losses on available-for-sale debt securities at December 31, 2022 $ 4,140 $ 6,676 $ 10,816 Additions to the allowance for credit losses on securities for which credit losses were not previously recorded — — — Additions to the allowance for credit losses arising from purchases of available-for-sale debt securities accounted for as purchased financial assets with credit deterioration — — — Reductions for securities sold during the period (221) — (221) Reductions in the allowance for credit losses because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis — — — Additional increases (decreases) to the allowance for credit losses on securities that had credit losses, or an allowance recorded in a previous period (158) 3,984 3,826 Write-offs charged against the allowance — — — Recoveries of amounts previously written off — — — Allowance for credit losses on available-for-sale debt securities at September 30, 2023 $ 3,761 $ 10,660 $ 14,421 |
RESIDENTIAL MORTGAGE LOANS
RESIDENTIAL MORTGAGE LOANS | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
RESIDENTIAL MORTGAGE LOANS | RESIDENTIAL MORTGAGE LOANS Rithm Capital accumulated its residential mortgage loan portfolio through various bulk acquisitions and the execution of call rights. Rithm Capital, through its Mortgage Company, originates residential mortgage loans for sale and securitization to third parties and generally retains the servicing rights on the underlying loans. Loans are accounted for based on Rithm Capital’s strategy for the loan and on whether the loan was credit-impaired at the date of acquisition. As of September 30, 2023, Rithm Capital accounts for loans based on the following categories: • Loans held-for-investment, at fair value • Loans held-for-sale, at lower of cost or fair value • Loans held-for-sale, at fair value The following table summarizes residential mortgage loans outstanding by loan type: September 30, 2023 December 31, 2022 Loan Type Outstanding Face Amount Carrying Loan Weighted Average Yield Weighted Average Life (Years) (A) Carrying Value Total residential mortgage loans, held-for-investment, at fair value $ 462,187 $ 370,957 8,610 8.9 % 4.5 $ 452,519 Acquired performing loans (B) 69,353 57,229 1,947 8.9 % 4.7 72,425 Acquired non-performing loans (C) 27,042 21,454 324 9.3 % 3.2 28,602 Total residential mortgage loans, held-for-sale, at lower of cost or market $ 96,395 $ 78,683 2,271 9.0 % 4.3 $ 101,027 Acquired performing loans (B)(D) $ 997,217 $ 963,554 3,374 6.8 % 13.1 $ 890,131 Acquired non-performing loans (C)(D) 211,662 191,078 1,101 4.6 % 23.8 340,342 Originated loans 1,579,012 1,585,967 5,593 6.9 % 29.2 2,066,798 Total residential mortgage loans, held-for-sale, at fair value $ 2,787,891 $ 2,740,599 10,068 6.7 % 23.0 $ 3,297,271 Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market $ 2,884,286 $ 2,819,282 $ 3,398,298 (A) For loans classified as Level 3 in the fair value hierarchy, the weighted average life is based on the expected timing of the receipt of cash flows. For Level 2 loans, the weighted average life is based on the contractual term of the loan. (B) Performing loans are generally placed on non-accrual status when principal or interest is 90 days or more past due. (C) As of September 30, 2023, Rithm Capital has placed non-performing loans, held-for-sale on non-accrual status, except as described in (D) below. (D) Includes $252.1 million and $186.7 million UPB of Ginnie Mae Early Buyout Options (“EBOs”) performing and non-performing loans, respectively, on accrual status as contractual cash flows are guaranteed by the FHA. The following table summarizes the geographic distribution of the underlying residential mortgage loans: Percentage of Total Outstanding Unpaid Principal Amount State Concentration September 30, 2023 December 31, 2022 Florida 11.4 % 10.9 % California 9.3 % 10.2 % New York 8.5 % 6.8 % Texas 8.0 % 8.9 % Georgia 4.1 % 4.2 % New Jersey 3.8 % 3.8 % Illinois 3.6 % 3.6 % Indiana 3.2 % 3.2 % Maryland 3.2 % 3.1 % Pennsylvania 2.8 % 2.7 % Other U.S. 42.1 % 42.6 % 100.0 % 100.0 % See Note 18 regarding the financing of residential mortgage loans. The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate carrying value of loans: September 30, 2023 December 31, 2022 Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB 90+ $ 305,579 $ 266,341 $ (39,237) $ 468,147 $ 423,321 $ (44,826) The following table summarizes the activity for residential mortgage loans: Loans Held-for-Investment, at Fair Value Loans Held-for-Sale, at Lower of Cost or Fair Value Loans Held-for-Sale, at Fair Value Total Balance at December 31, 2022 $ 452,519 $ 101,027 $ 3,297,271 $ 3,850,817 Originations — — 28,097,716 28,097,716 Sales — (6,946) (28,795,595) (28,802,541) Purchases/additional fundings 1,269 — 241,061 242,330 Proceeds from repayments (38,988) (8,289) (146,886) (194,163) Transfer of loans to other assets (A) — — 7,248 7,248 Transfer of loans to real estate owned (6,127) (3,170) (1,464) (10,761) Transfers of loans to held-for-sale (30,556) — — (30,556) Transfer of loans from held-for-investment — — 30,556 30,556 Valuation (provision) reversal on loans — (3,939) — (3,939) Fair value adjustments due to: Changes in instrument-specific credit risk 4,000 — 9,309 13,309 Other factors (11,160) — 1,383 (9,777) Balance at September 30, 2023 $ 370,957 $ 78,683 $ 2,740,599 $ 3,190,239 (A) Represents loans for which foreclosure has been completed and for which Rithm Capital has made, or intends to make, a claim with the governmental agency that has guaranteed the loans that are grouped and presented as part of claims receivable in other assets (Note 13). Net Interest Income The following table summarizes the net interest income for residential mortgage loans: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Interest income: Loans held-for-investment, at fair value $ 8,009 $ 11,550 $ 26,732 $ 32,298 Loans held-for-sale, at lower of cost or fair value 1,206 1,613 4,594 5,429 Loans held-for-sale, at fair value 43,875 47,885 122,906 174,536 Total interest income $ 53,090 $ 61,048 $ 154,232 $ 212,263 Interest expense: Loans held-for-investment, at fair value 4,823 3,793 14,342 9,955 Loans held-for-sale, at lower of cost or fair value 857 841 2,746 2,513 Loans held-for-sale, at fair value 44,531 47,953 130,034 129,332 Total interest expense $ 50,211 $ 52,587 $ 147,122 $ 141,800 Net interest income $ 2,879 $ 8,461 $ 7,110 $ 70,463 Gain on Originated Residential Mortgage Loans, Held-for-Sale, Net The Mortgage Company originates conventional, government-insured and nonconforming residential mortgage loans for sale and securitization. In connection with the sale or securitization of loans to the GSEs or mortgage investors, Rithm Capital reports gain on originated residential mortgage loans, held-for-sale, net in the Consolidated Statements of Operations. The following table summarizes the components of gain on originated residential mortgage loans, held-for-sale, net: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Gain (loss) on residential mortgage loans originated and sold, net (A) $ (178,658) $ (141,327) $ (332,793) $ (933,582) Gain (loss) on settlement of residential mortgage loan origination derivative instruments (B) 67,377 57,407 65,798 1,109,163 MSRs retained on transfer of residential mortgage loans (C) 266,644 268,613 609,460 1,059,535 Other (D) 5,892 2,763 2,751 32,302 Realized gain on sale of originated residential mortgage loans, net $ 161,255 $ 187,456 $ 345,216 $ 1,267,418 Change in fair value of residential mortgage loans (19,299) (113,210) 40,190 (383,169) Change in fair value of interest rate lock commitments (Note 17) (8,630) (104,440) (2,288) (154,644) Change in fair value of derivative instruments (Note 17) 15,904 233,673 27,202 250,661 Gain on originated residential mortgage loans, held-for-sale, net $ 149,230 $ 203,479 $ 410,320 $ 980,266 (A) Includes residential mortgage loan origination fees of $105.9 million and $156.8 million for the three months ended September 30, 2023 and 2022, respectively. Includes residential mortgage loan origination fees of $268.8 million and $526.1 million for the nine months ended September 30, 2023 and 2022, respectively. (B) Represents settlement of forward securities delivery commitments utilized as an economic hedge for mortgage loans not included within forward loan sale commitments. (C) Represents the initial fair value of the capitalized mortgage servicing rights upon loan sales with servicing retained. (D) Includes fees for services associated with the residential mortgage loan origination process. |
CONSUMER LOANS
CONSUMER LOANS | 9 Months Ended |
Sep. 30, 2023 | |
Investments In Consumer Loans Equity Method Investees [Abstract] | |
CONSUMER LOANS | CONSUMER LOANS On June 20, 2023, Rithm Capital purchased a portfolio of consumer loans from Goldman Sachs Bank USA (the “Marcus loans” or “Marcus”). The portfolio consists of unsecured fixed rate closed end installment loans. In tandem with this purchase, Rithm Capital entered into a loan servicing agreement with Goldman Sachs Bank USA (“Goldman”) whereby Goldman will continue to service the Marcus loans for the duration of their life. Rithm Capital, through certain limited liability companies (together, the “Consumer Loan Companies”), has a co-investment in a portfolio of consumer loans purchased from the joint venture SpringCastle. The portfolio includes personal unsecured loans and personal homeowner loans (the “SpringCastle loans” or “SpringCastle”). OneMain Holdings Inc is the servicer of the SpringCastle loans and provides all servicing and advancing functions for the SpringCastle portfolio. As of September 30, 2023, Rithm Capital owns 53.5% of the limited liability company interests in, and consolidates, the Consumer Loan Companies. The following table summarizes characteristics of the consumer loan portfolio, inclusive of the SpringCastle loans and Marcus loans: Unpaid Principal Balance Carrying Value Weighted Average Coupon Weighted Average Expected Life (Years) September 30, 2023 SpringCastle $ 275,053 $ 303,881 18.2 % 3.6 Marcus 1,200,441 1,132,199 11.1 % 1.3 Total consumer loans $ 1,475,494 $ 1,436,080 12.4 % 1.7 December 31, 2022 SpringCastle $ 330,428 $ 363,756 17.8 % 3.4 Marcus — — — % — Total consumer loans $ 330,428 $ 363,756 17.8 % 3.4 See Note 18 regarding the financing of consumer loans. The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of consumer loans: September 30, 2023 December 31, 2022 Days Past Due UPB Carrying Value (A) Carrying Value Over (Under) UPB UPB Carrying Value (A) Carrying Value Over (Under) UPB SpringCastle Current $ 270,509 $ 298,905 $ 28,396 $ 325,192 $ 358,057 $ 32,865 90+ 4,544 4,976 432 5,236 5,699 463 Total SpringCastle $ 275,053 $ 303,881 $ 28,828 $ 330,428 $ 363,756 $ 33,328 Marcus Current $ 1,193,531 $ 1,125,682 $ (67,849) $ — $ — $ — 90+ 6,910 6,517 (393) — — — Total Marcus $ 1,200,441 $ 1,132,199 $ (68,242) $ — $ — $ — $ 1,475,494 $ 1,436,080 $ (39,414) $ 330,428 $ 363,756 $ 33,328 (A) Consumer loans are carried at fair value. See Note 19 regarding fair value measurements. The following table summarizes activities related to the carrying value of consumer loans: SpringCastle Marcus Total Balance at December 31, 2022 $ 363,756 $ — $ 363,756 Purchases — 1,317,347 1,317,347 Additional fundings (A) 20,675 — 20,675 Proceeds from repayments (75,681) (197,274) (272,955) Accretion of loan discount and premium amortization, net 7,178 14,103 21,281 Fair value adjustment due to: Changes in instrument-specific credit risk 3,945 — 3,945 Other factors (15,992) (1,977) (17,969) Balance at September 30, 2023 $ 303,881 $ 1,132,199 $ 1,436,080 (A) Represents draws on consumer loans with revolving privileges. |
SINGLE-FAMILY RENTAL PROPERTIES
SINGLE-FAMILY RENTAL PROPERTIES | 9 Months Ended |
Sep. 30, 2023 | |
Real Estate [Abstract] | |
SINGLE-FAMILY RENTAL PROPERTIES | SINGLE-FAMILY RENTAL PROPERTIES The following table summarizes the net carrying value of investments in SFR properties: September 30, 2023 December 31, 2022 Land $ 180,782 $ 175,607 Building 723,129 702,427 Capital improvements 134,631 118,999 Total gross investment in SFR properties 1,038,542 997,033 Accumulated depreciation (46,594) (25,720) Investment in SFR properties, net $ 991,948 $ 971,313 Depreciation expense for the nine months ended September 30, 2023 and 2022 totaled $21.0 million and $12.4 million, respectively, and is included in other income (loss), net in the Consolidated Statements of Operations. As of September 30, 2023 and December 31, 2022, the carrying amount of the SFR properties includes capitalized acquisition costs of $7.5 million and $7.7 million, respectively. SFR properties held-for-sale are managed for near term sale and disposition. For the nine months ended September 30, 2023, Rithm Capital transferred 30 SFR properties to held-for-sale. The following table summarizes the activity related to the net carrying value of investments in SFR properties: SFR Properties Held-for-Investment SFR Properties Held-for-Sale Total Balance at December 31, 2022 $ 971,313 $ — $ 971,313 Acquisitions and capital improvements 48,563 — 48,563 Transfer to held-for-sale (9,747) 9,747 — Dispositions (250) (6,698) (6,948) Accumulated depreciation (20,861) (119) (20,980) Balance at September 30, 2023 $ 989,018 $ 2,930 $ 991,948 Rithm Capital generally rents its SFR properties under non-cancelable lease agreements with a term of one Remainder of 2023 $ 17,917 2024 and thereafter 33,291 Total $ 51,208 The following table summarizes the activity of the SFR portfolio by units: SFR Properties Held-for-Investment SFR Properties Held-for-Sale Total Balance at December 31, 2022 3,731 — 3,731 Acquisition of SFR units 129 — 129 Transfer to held-for-sale (30) 30 — Disposition of SFR units (1) (20) (21) Balance at September 30, 2023 3,829 10 3,839 See Note 18 regarding the financing of SFR Properties. |
MORTGAGE LOANS RECEIVABLE
MORTGAGE LOANS RECEIVABLE | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
MORTGAGE LOANS RECEIVABLE | MORTGAGE LOANS RECEIVABLE Genesis specializes in originating and managing a portfolio of primarily short-term mortgage loans to fund the construction and development of, or investment in, residential properties. On August 24, 2023 Rithm Capital acquired a portfolio of loans from Morgan Stanley Bank, N.A. with a face value of $148.4 million. The portfolio consists of fixed rate bridge and renovation loans and is master serviced by Genesis. The following table summarizes mortgage loans receivable outstanding by loan purpose as of September 30, 2023: Carrying Value (A) % of Portfolio Loan % of Portfolio Weighted Average Yield Weighted Average Original Life (Months) Weighted Average Committed Loan Balance to Value (B) Construction $ 947,754 44.3 % 422 30.0 % 9.8 % 16.1 75.0% / 63.3% Bridge 925,859 43.4 % 682 48.6 % 9.3 % 25.1 69.9% Renovation 261,811 12.3 % 300 21.4 % 9.9 % 14.0 79.4% / 68.2% $ 2,135,424 100.0 % 1,404 100.0 % 9.6 % 19.7 N/A (A) Mortgage loans receivable are carried at fair value. See Note 19 regarding fair value measurements. (B) Weighted by commitment loan-to-value (“LTV”) for bridge loans, loan-to-cost (“LTC”) and loan-to-after-repair-value (“LTARV”) for construction and renovation loans. The following table summarizes the activity for mortgage loans receivable: Balance at December 31, 2022 $ 2,064,028 Purchases 146,631 Initial loan advances 975,677 Construction holdbacks and draws 491,370 Paydowns and payoffs (1,542,459) Purchased loans discount amortization 177 Balance at September 30, 2023 $ 2,135,424 The Company is subject to credit risk in connection with its investments in mortgage loans. The two primary components of credit risk are default risk, which is the risk that a borrower fails to make scheduled principal and interest payments, and severity risk, which is the risk of loss upon a borrower default on a mortgage loan or other secured or unsecured loan. Severity risk includes the risk of loss of value of the property or other asset, if any, securing the loan, as well as the risk of loss associated with taking over the property or other asset, if any, including foreclosure costs. The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of mortgage loans receivable: September 30, 2023 December 31, 2022 Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB Current $ 2,105,989 $ 2,104,383 $ (1,606) $ 2,064,028 $ 2,064,028 $ — 90+ 31,045 31,041 (4) — — — The following table summarizes the geographic distribution of the underlying mortgage loans receivable as of September 30, 2023: State Concentration Percentage of Total California 49.2 % Washington 8.7 % New York 7.0 % Colorado 5.6 % Florida 5.2 % Arizona 4.2 % Virginia 3.8 % North Carolina 2.5 % Illinois 2.4 % Texas 2.3 % Other U.S. 9.1 % 100.0 % See Note 18 regarding the financing of mortgage loans receivable. |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 9 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | CASH, CASH EQUIVALENTS AND RESTRICTED CASH Rithm Capital considers all highly liquid short-term investments with maturities of 90 days or less when purchased to be cash equivalents. Substantially all amounts on deposit with major financial institutions exceed insured limits. Restricted cash primarily relates to the financing of servicer advances that has been pledged to the note holders for interest and fees payable, cash related to securitization facilities (Note 20) and financing of consumer loans as well as real estate securities. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on Rithm Capital’s Consolidated Balance Sheets to the total of the same such amounts shown in the Consolidated Statements of Cash Flows: September 30, 2023 December 31, 2022 Cash and cash equivalents $ 1,217,283 $ 1,336,508 Restricted cash 368,447 281,126 Total cash, cash equivalents and restricted cash $ 1,585,730 $ 1,617,634 The following table summarizes restricted cash balances: September 30, 2023 December 31, 2022 MSRs and servicer advances $ 119,150 $ 69,347 Real estate and other securities 3,543 4,604 Consumer loans 19,703 15,930 SFR properties 14,501 4,627 Origination and servicing 165,796 161,249 Mortgage loans receivable 45,754 25,369 Total restricted cash $ 368,447 $ 281,126 |
OTHER ASSETS AND LIABILITIES
OTHER ASSETS AND LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
Other Income Assets And Liabilities [Abstract] | |
OTHER ASSETS AND LIABILITIES | OTHER ASSETS AND LIABILITIES Other Assets and Accrued Expenses and Other Liabilities consist of the following: Other Assets Accrued Expenses September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Margin receivable, net (A) $ 569,081 $ 20,614 Margin payable $ 31,392 $ 4,852 Excess MSRs, at fair value (Note 4) 282,976 321,803 Interest payable 215,276 87,700 Servicer advance investments, at fair value (Note 6) 387,669 398,820 Accounts payable 177,969 155,492 Servicing fee receivables 125,381 128,438 Derivative liabilities (Note 17) 9,639 18,064 Principal and interest receivable 164,558 106,608 Accrued compensation and benefits 110,834 112,762 Equity investments (B) 67,819 71,388 Operating lease liabilities (Note 16) 101,478 101,225 Other receivables 159,142 146,131 Deferred tax liability 798,179 711,855 REO 17,824 19,379 Other liabilities 337,548 294,717 Goodwill (Note 15) (C) 85,199 85,199 $ 1,782,315 $ 1,486,667 Notes receivable, at fair value (E) 33,250 — Warrants, at fair value 18,854 19,346 Property and equipment 26,840 37,883 Intangible assets (Note 15) 123,245 141,413 Prepaid expenses 35,398 60,817 Operating lease right-of-use assets (Note 16) 77,522 77,329 Derivative assets (Note 17) 63,532 52,229 Loans receivable, at fair value (D) 30,109 94,401 Other assets 151,469 132,809 $ 2,419,868 $ 1,914,607 (A) Represents collateral posted as a result of changes in fair value of Rithm Capital’s (i) real estate securities securing its secured financing agreements and (ii) derivative instruments. (B) Represents equity investments in (i) commercial redevelopment projects and (ii) operating companies providing services throughout the real estate industry, including investments in Covius Holding Inc. (“Covius”), a provider of various technology-enabled services to the mortgage and real estate sectors, preferred stock in Valon Mortgage, Inc. (“Valon”), a residential mortgage servicing and technology company, and preferred stock in Credijusto Ltd. (“Covalto”), a financial services company. (C) Includes goodwill derived from the acquisition of Shellpoint Partners LLC (“Shellpoint”), Guardian Asset Management LLC (“Guardian”) and Genesis. (D) Represents loans made pursuant to a senior credit agreement and a senior subordinated credit agreement to an entity affiliated with funds managed by an affiliate of the Former Manager. The loans are accounted for under the fair value option. (E) Represents notes receivable acquired pursuant to a loan sale agreement, secured by certain commercial properties. The note is accounted for under the fair value option. Real Estate Owned (REO) — REO assets are those individual properties acquired by Rithm Capital or where Rithm Capital receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession). Rithm Capital measures REO assets at the lower of cost or fair value, with valuation changes recorded in other income or valuation and credit loss (provision) reversal on loans and real estate owned in the Consolidated Statements of Operations. REO assets are managed for prompt sale and disposition. The following table presents activity related to the carrying value of investments in REO: Balance at December 31, 2022 $ 19,379 Property received in satisfaction of loan 21,135 Sales (A) (23,822) Valuation (provision) reversal 1,132 Balance at September 30, 2023 $ 17,824 (A) Recognized when control of the property has transferred to the buyer. As of September 30, 2023, Rithm Capital had residential mortgage loans and mortgage loans receivable that were in the process of foreclosure with unpaid principal balances of $61.4 million and $19.3 million, respectively. Notes and Loans Receivable — The following table summarizes the activity for notes and loans receivable: Notes Receivable Loans Receivable Total Balance at December 31, 2022 $ — $ 94,401 $ 94,401 Fundings 35,000 — 35,000 Payment in Kind — 4,422 4,422 Proceeds from repayments (1,750) (68,945) (70,695) Fair value adjustments due to: Changes in instrument-specific credit risk — — — Other factors — 231 231 Balance at September 30, 2023 $ 33,250 $ 30,109 $ 63,359 The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of notes and loans receivable: September 30, 2023 December 31, 2022 Days Past Due UPB Carrying Value (A) Carrying Value Over (Under) UPB UPB Carrying Value (A) Carrying Value Over (Under) UPB Current $ 133,191 $ 63,359 $ (69,832) $ 157,745 $ 94,401 $ (63,344) 90+ — — — — — — (A) Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements. |
EXPENSES, REALIZED AND UNREALIZ
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND OTHER | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND OTHER | EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND OTHER General and Administrative expenses consist of the following: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Legal and professional $ 35,348 $ 16,310 $ 65,447 $ 65,718 Loan origination 11,929 16,991 33,280 91,907 Occupancy 13,004 29,916 40,981 88,579 Subservicing 31,483 37,899 109,370 126,694 Loan servicing 5,381 3,371 10,878 13,541 Property and maintenance 25,480 24,698 73,450 70,409 Other 67,850 85,439 205,732 229,285 Total general and administrative expenses $ 190,475 $ 214,624 $ 539,138 $ 686,133 Other Income (Loss) The following table summarizes the components of other income (loss): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Real estate and other securities $ (315,612) $ (463,607) $ (354,339) $ (1,590,625) Residential mortgage loans and REO (12,437) (35,310) (4,463) (166,927) Derivative instruments 194,593 464,618 259,539 1,503,183 Other (A) 5,948 181 (14,469) (2,287) Realized and unrealized gains (losses) on investments, net $ (127,508) $ (34,118) $ (113,732) $ (256,656) Unrealized gain (loss) on secured notes and bonds payable $ 3,840 $ 15,128 $ 5,889 $ 50,279 Rental revenue 18,297 16,937 54,163 37,339 Property and maintenance revenue 33,953 34,520 100,707 100,860 (Provision) reversal for credit losses on securities (2,798) (2,812) (3,605) (5,697) Valuation and credit loss (provision) reversal on loans and real estate owned (647) (3,932) (2,849) (8,575) Other income (loss) 18,402 (36,599) (36,920) (39,244) Other income (loss), net $ 71,047 $ 23,242 $ 117,385 $ 134,962 Total Other income (loss) $ (56,461) $ (10,876) $ 3,653 $ (121,694) (A) Includes excess MSRs, servicer advance investments, consumer loans and other. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS As a result of acquisitions, Rithm Capital identified intangible assets in the form of licenses, customer relationships, business relationships and trade names. The following table summarizes the carrying value of goodwill by reportable segment: Origination Servicing MSR Mortgage Loans Receivable Total Balance at December 31, 2022 $ 11,836 $ 12,540 $ 5,092 $ 55,731 $ 85,199 Goodwill acquired — — — — — Accumulated impairment loss — — — — — Balance at September 30, 2023 $ 11,836 $ 12,540 $ 5,092 $ 55,731 $ 85,199 The following table summarizes the acquired identifiable intangible assets: Estimated Useful Lives (Years) September 30, 2023 December 31, 2022 Gross Intangible Assets Customer relationships 3 to 9 $ 57,949 $ 57,949 Purchased technology 3 to 7 137,922 120,787 Trademarks / Trade names 1 to 5 10,259 10,259 $ 206,130 $ 188,995 Accumulated Amortization Customer relationships 16,739 12,960 Purchased technology 61,598 30,959 Trademarks / Trade names 4,548 3,663 $ 82,885 $ 47,582 Intangible Assets, Net Customer relationships 41,210 44,989 Purchased technology (A) 76,324 89,828 Trademarks / Trade names (B) 5,711 6,596 $ 123,245 $ 141,413 (A) Includes indefinite-lived intangible assets of $21.4 million and $21.4 million, respectively. (B) Includes indefinite-lived intangible assets of $1.9 million and $1.9 million, respectively. The following table summarizes the expected future amortization expense for acquired intangible assets as of September 30, 2023: Year Ending Amortization Expense October 1 through December 31, 2023 $ 7,566 2024 27,675 2025 25,592 2026 17,357 2027 and thereafter 21,814 $ 100,004 |
OPERATING LEASES
OPERATING LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
OPERATING LEASES | OPERATING LEASES Rithm Capital, through its wholly-owned subsidiaries, has leases on office space expiring through 2033. Rent expense, net of sublease income for the three months ended September 30, 2023 and 2022 totaled $11.0 million and $11.5 million, respectively, and for the nine months ended September 30, 2023 and 2022 totaled $34.1 million and $35.3 million, respectively. The Company has leases that include renewal options and escalation clauses. The terms of the leases do not impose any financial restrictions or covenants. Operating lease right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term and lease liabilities represent obligations to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are grouped and presented as part of other assets accrued expenses and other liabilities The table below summarizes the future commitments under the non-cancelable leases: Year Ending Amount October 1 through December 31, 2023 $ 7,325 2024 25,967 2025 21,099 2026 13,715 2027 11,257 2028 and thereafter 37,630 Total remaining undiscounted lease payments 116,993 Less: imputed interest 15,515 Total remaining discounted lease payments $ 101,478 The future commitments under the non-cancelable leases have not been reduced by the sublease rentals of $7.2 million due in the future periods. Other information related to operating leases is summarized below: September 30, 2023 December 31, 2022 Weighted-average remaining lease term (years) 6.4 5.7 Weighted-average discount rate 4.5 % 4.0 % |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES Rithm Capital enters into economic hedges including interest rate swaps and to-be-announced forward contract positions (“TBAs”) to hedge a portion of its interest rate risk exposure. Interest rate risk is sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations, as well as other factors. Rithm Capital’s credit risk with respect to economic hedges is the risk of default on Rithm Capital’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. Rithm Capital may at times hold TBAs in order to mitigate Rithm Capital’s interest rate risk on certain specified mortgage-backed securities and MSRs. Amounts or obligations owed by or to Rithm Capital are subject to the right of set-off with the TBA counterparty. As part of executing these trades, Rithm Capital may enter into agreements with its TBA counterparties that govern the transactions for the TBA purchases or sales made, including margin maintenance, payment and transfer, events of default, settlements and various other provisions. Changes in the value of derivatives designed to protect against mortgage-backed securities and MSR fair value fluctuations, or hedging gains and losses, are reflected in the tables below. As of September 30, 2023, Rithm Capital also held interest rate lock commitments (“IRLCs”), which represent a commitment to a particular interest rate provided the borrower is able to close the loan within a specified period, and forward loan sale and securities delivery commitments, which represent a commitment to sell specific residential mortgage loans at prices which are fixed as of the forward commitment date. Rithm Capital enters into forward loan sale and securities delivery commitments in order to hedge the exposure related to IRLCs and residential mortgage loans that are not covered by residential mortgage loan sale commitments. Derivatives are recorded at fair value on the Consolidated Balance Sheets as follows: Balance Sheet Location September 30, 2023 December 31, 2022 Derivative assets Interest rate swaps (A) Other assets $ 350 $ 449 Interest rate lock commitments Other assets 13,751 16,015 TBAs Other assets 49,431 35,765 Options on treasury futures Other assets — — $ 63,532 $ 52,229 Derivative liabilities Interest rate lock commitments Accrued expenses and other liabilities $ 7,253 $ 7,229 TBAs Accrued expenses and other liabilities 2,386 10,835 $ 9,639 $ 18,064 (A) Net of $1.1 billion and $1.2 billion of related variation margin balances as of September 30, 2023 and December 31, 2022, respectively. The following table summarizes notional amounts related to derivatives: September 30, 2023 December 31, 2022 Interest rate swaps (A) $ 22,565,000 $ 23,085,000 Interest rate lock commitments 2,704,543 2,647,747 TBAs, short position (B) 7,104,300 8,473,221 TBAs, long position (B) — 31,500 (A) Includes $20.2 billion notional of receive Secured Overnight Financing Rate (“SOFR”)/pay fixed of 2.5% and $2.4 billion notional of receive fixed of 3.4%/pay SOFR with weighted average maturities of 38 months and 40 months, respectively, as of September 30, 2023. Includes $23.1 billion notional of receive SOFR/pay fixed of 1.9% and $0.0 billion notional of receive fixed of 0.0%/pay SOFR with weighted average maturities of 35 months and 0 months, respectively, as of December 31, 2022. (B) Represents the notional amount of Agency RMBS, classified as derivatives. The following table summarizes gain (loss) on derivatives and the related location on the Consolidated Statements of Operations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Servicing revenue, net (A) TBAs $ — $ (18,505) $ — $ (15,205) Treasury futures — — — (1,746) Options on treasury futures — — — 5,635 $ — $ (18,505) $ — $ (11,316) Gain on originated residential mortgage loans, held-for-sale, net (A) Interest rate lock commitments (8,630) (104,440) (2,288) (154,644) TBAs 15,574 233,673 28,803 250,661 Interest rate swaps 330 — (1,601) — $ 7,274 $ 129,233 $ 24,914 $ 96,017 Realized and unrealized gains (losses) on investments, net (B)(C) Interest rate swaps 191,527 465,269 263,347 1,145,196 TBAs 3,066 (651) (3,808) 357,987 $ 194,593 $ 464,618 $ 259,539 $ 1,503,183 Total gain (loss) $ 201,867 $ 575,346 $ 284,453 $ 1,587,884 (A) Represents unrealized gain (loss). (B) Excludes no loss and $2.2 million loss for the three months ended September 30, 2023 and 2022, respectively, and no loss and $79.0 million loss for the nine months ended September 30, 2023 and 2022, respectively, included within Servicing revenue, net (Note 5). (C) Excludes $67.4 million gain and $57.4 million gain for the three months ended September 30, 2023 and 2022, respectively, and $65.8 million gain and $1.1 billion gain for the nine months ended September 30, 2023 and 2022, respectively, included within Gain on originated residential mortgage loans, held-for-sale, net (Note 8). |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | DEBT OBLIGATIONS The following table summarizes Secured Financing Agreements and Secured Notes and Bonds Payable debt obligations: September 30, 2023 December 31, 2022 Collateral Debt Obligations/Collateral (C) Outstanding Face Amount Carrying Value (A) Final Stated Maturity (B) Weighted Average Funding Cost Weighted Average Life (Years) Outstanding Face Amortized Cost Basis Carrying Value Weighted Average Life (Years) Carrying Value (A) Secured Financing Agreements Repurchase Agreements: Warehouse Credit Facilities-Residential Mortgage Loans (F) $ 2,155,544 $ 2,155,092 Oct-23 to Mar-25 7.3 % 0.7 $ 2,565,299 $ 2,586,513 $ 2,482,541 17.8 $ 2,601,327 Warehouse Credit Facilities-Mortgage Loans Receivable (E) 1,212,156 1,212,156 Dec-23 to May-24 8.2 % 0.3 1,473,515 1,471,904 1,471,904 1.1 1,220,662 Agency RMBS or U.S. Treasury Bills (D) 9,653,355 9,653,355 Oct-23 to Feb-24 5.4 % 0.2 9,731,596 9,546,319 9,870,841 8.1 6,821,788 Non-Agency RMBS (E) 574,346 574,346 Oct-23 to Oct-27 7.3 % 0.8 13,600,138 882,800 880,999 6.2 609,282 SFR Properties (E) 10,431 10,431 Dec-24 7.8 % 1.2 N/A 32,899 32,899 N/A 4,677 Total Secured Financing Agreements $ 13,605,832 $ 13,605,380 6.0 % 0.3 $ 11,257,736 Secured Notes and Bonds Payable Excess MSRs (G) 193,432 193,432 Aug-25 8.8 % 1.9 61,988,328 239,154 278,059 6.3 227,596 MSRs (H) 4,200,200 4,191,504 Nov-23 to Mar-28 6.9 % 1.7 523,532,413 6,317,954 8,616,793 7.9 4,791,543 Servicer Advance Investments (I) 275,952 275,142 Mar-24 to Aug-24 7.5 % 0.4 314,165 361,325 387,669 8.6 318,445 Servicer Advances (I) 2,091,447 2,091,185 Nov-23 to Nov-24 7.6 % 0.5 2,555,898 2,434,266 2,434,266 0.7 2,361,259 Residential Mortgage Loans (J) 650,000 650,000 May-24 6.5 % 0.6 654,975 655,576 658,402 29.2 769,988 Consumer Loans (K) 1,303,517 1,269,768 Jun-28 to Sep 37 7.1 % 4.5 1,475,494 1,422,559 1,436,080 1.7 299,498 SFR Properties (L) 833,387 786,596 Mar-26 to Sep-27 4.1 % 3.6 N/A 956,118 956,118 N/A 817,695 Mortgage Loans Receivable (M) 524,062 507,228 Jul 26 to Dec-26 5.7 % 3.1 567,432 567,432 567,432 0.6 512,919 Total Secured Notes and Bonds Payable $ 10,071,997 $ 9,964,855 6.8 % 1.9 $ 10,098,943 Total/ Weighted Average $ 23,677,829 $ 23,570,235 6.4 % 1.0 $ 21,356,679 (A) Net of deferred financing costs. (B) All debt obligations with a stated maturity through the date of issuance were refinanced, extended or repaid. (C) Includes approximately $199.5 million of associated accrued interest payable as of September 30, 2023. (D) Includes $974.0 million face amount of repurchase agreements collateralized by U.S. Treasury Bills. All repurchase agreements have a fixed rate. Collateral carrying value includes margin deposits. (E) All SOFR-based floating interest rates. Collateral carrying value includes margin deposits. (F) Includes $244.3 million which bear interest at an average fixed rate of 5.1% with the remaining having SOFR-based floating interest rates. (G) Includes $193.4 million of corporate loans which bear interest at the sum of one-month SOFR plus a margin of 3.4%. (H) Includes $2.7 billion of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month SOFR, and (ii) a margin ranging from 2.5% to 3.7%; and $1.5 billion of capital market notes with fixed interest rates ranging 3.0% to 5.4%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the MSRs and MSR financing receivables securing these notes. (I) Includes debt bearing interest equal to the sum of (i) a floating rate index equal to one-month SOFR, and (ii) a margin ranging from 1.5% to 3.7%. Collateral includes servicer advance investments, as well as servicer advances receivable related to the MSRs and MSR financing receivables owned by NRM and the Mortgage Company. (J) Represents $650.0 million securitization backed by a revolving warehouse facility to finance newly originated first-lien, fixed- and adjustable-rate residential mortgage loans which bears interest equal to one-month SOFR plus 1.2%. Collateral carrying value includes cash held in the securitization trust required to meet collateral requirements. (K) Includes (i) SpringCastle debt, which is primarily composed of the following classes of asset-backed notes held by third parties: $220.9 million UPB of Class A notes with a coupon of 2.0% and $53.0 million UPB of Class B notes with a coupon of 2.7% and (ii) $1.0 billion of debt collateralized by the Marcus loans bearing interest at the sum of one-month SOFR plus a margin of 3.0%. (L) Includes $833.4 million of fixed rate notes which bear interest ranging from 3.5% to 7.1%. (M) Includes $238.1 million which bear interest at an average fixed rate of 4.7% with the remaining having SOFR-based floating interest rates. General Certain of the debt obligations included above are obligations of Rithm Capital’s consolidated subsidiaries, which own the related collateral. In some cases, such collateral is not available to other creditors of Rithm Capital. As of September 30, 2023, Rithm Capital has margin exposure on $13.6 billion of secured financing agreements. To the extent that the value of the collateral underlying these secured financing agreements declines, Rithm Capital may be required to post margin, which could significantly impact its liquidity. The following table summarizes activities related to the carrying value of debt obligations: Excess MSRs MSRs Servicer Advances (A) Real Estate Securities Residential Mortgage Loans and REO Consumer Loans SFR Properties Mortgage Loans Receivable Total Balance at December 31, 2022 $ 227,596 $ 4,791,543 $ 2,679,704 $ 7,431,070 $ 3,371,315 $ 299,498 $ 822,372 $ 1,733,581 $ 21,356,679 Secured Financing Agreements Borrowings — — — 34,530,433 28,858,739 — 10,431 1,756,295 65,155,898 Repayments — — — (31,733,802) (29,306,544) — (4,677) (1,764,800) (62,809,823) Capitalized deferred financing costs, net of amortization — — — — 1,570 — — — 1,570 Secured Notes and Bonds Payable Borrowings — 1,753,504 1,955,228 — — 1,185,612 — — 4,894,344 Repayments (34,164) (2,353,301) (2,271,757) — (116,730) (212,867) (35,690) — (5,024,509) Discount on borrowings, net of amortization — — — — — — — — — Unrealized gain on notes, fair value — — — — (3,258) 3,058 — (5,692) (5,892) Capitalized deferred financing costs, net of amortization — (242) 3,152 — — (5,533) 4,591 — 1,968 Balance at September 30, 2023 $ 193,432 $ 4,191,504 $ 2,366,327 $ 10,227,701 $ 2,805,092 $ 1,269,768 $ 797,027 $ 1,719,384 $ 23,570,235 (A) Rithm Capital net settles daily borrowings and repayments of the secured notes and bonds payable on its servicer advances. Maturities Contractual maturities of debt obligations as of September 30, 2023 are as follows: Year Ending Nonrecourse (A) Recourse (B) Total October 1 through December 31, 2023 $ — $ 8,934,533 $ 8,934,533 2024 3,054,577 6,241,670 9,296,247 2025 — 1,814,895 1,814,895 2026 — 1,725,498 1,725,498 2027 734,738 245,000 979,738 2028 and thereafter 1,303,518 173,400 1,476,918 $ 5,092,833 $ 19,134,996 $ 24,227,829 (A) Includes secured notes and bonds payable of $5.1 billion. (B) Includes secured financing agreements and secured notes and bonds payable of $13.6 billion and $5.5 billion, respectively. Secured financing agreements with contractual maturities prior to December 31, 2023 includes $9.7 billion collateralized by Agency RMBS or U.S. Treasury Bills. Borrowing Capacity The following table represents borrowing capacity as of September 30, 2023: Debt Obligations / Collateral Borrowing Capacity Balance Outstanding Available Financing (A) Secured Financing Agreements Residential mortgage loans and REO $ 5,604,816 $ 2,186,023 $ 3,418,793 Loan originations 6,827,000 1,192,108 5,634,892 Secured Notes and Bonds Payable Excess MSRs 286,380 193,432 92,948 MSRs 7,068,200 4,200,200 2,868,000 Servicer advances 3,880,000 2,367,399 1,512,601 Residential mortgage loans 296,762 195,411 101,351 $ 23,963,158 $ 10,334,573 $ 13,628,585 (A) Although available financing is uncommitted, Rithm Capital’s unused borrowing capacity is available if it has additional eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements, including any applicable advance rate. Certain of the debt obligations are subject to customary loan covenants and event of default provisions, including event of default provisions triggered by certain specified declines in Rithm Capital’s equity or a failure to maintain a specified tangible net worth, liquidity, or indebtedness to tangible net worth ratio. Rithm Capital was in compliance with all of its debt covenants as of September 30, 2023. 2025 Senior Unsecured Notes On September 16, 2020, the Company, as issuer, completed a private offering of $550.0 million aggregate principal amount of 6.250% senior unsecured notes due 2025 (the “2025 Senior Notes”). Interest on the 2025 Senior Notes accrue at the rate of 6.250% per annum with interest payable semi-annually in arrears on each April 15 and October 15. The 2025 Senior Notes mature on October 15, 2025 and the Company may redeem some or all of the 2025 Senior Notes at the Company’s option, at any time from time to time, on or after October 15, 2022 at a price equal to the following fixed redemption prices (expressed as a percentage of principal amount of the 2025 Senior Notes to be redeemed): Year Price 2023 101.563% 2024 and thereafter 100.000% Net proceeds from the offering were approximately $544.5 million, after deducting the initial purchasers’ discounts and commissions and estimated offering expenses payable by the Company. The Company incurred fees of approximately $8.3 million in relation to the issuance of the 2025 Senior Notes. These fees were capitalized as debt issuance cost and are grouped and presented as part of Unsecured senior notes, net of issuance costs on the Consolidated Balance Sheets. For the three months ended September 30, 2023 , the Company recognized interest expense of $8.7 million. At September 30, 2023 , the unamortized debt issuance costs was approximately $3.6 million. The 2025 Senior Notes are senior unsecured obligations and rank pari passu in right of payment with all of the Company’s existing and future senior unsecured indebtedness and senior unsecured guarantees. At the time of issuance, the 2025 Senior Notes were not guaranteed by any of the Company’s subsidiaries and none of its subsidiaries are required to guarantee the 2025 Senior Notes in the future, except under limited specified circumstances. The 2025 Senior Notes contain financial covenants and other non-financial covenants, including, among other things, limits on the ability of the Company and its restricted subsidiaries to incur certain indebtedness (subject to various exceptions), requires that the Company maintain total unencumbered assets (as defined in the Indenture, dated September 16, 2020, pursuant to which the 2025 Senior Notes were issued) of not less than 120% of the aggregate principal amount of the outstanding unsecured debt, and imposes certain requirements in order for the Company to merge or consolidate with or transfer all or substantially all of its assets to another person, in each case subject to certain qualifications set forth in the debt agreement. If the Company were to fail to comply with these covenants, after the expiration of the applicable cure periods, the debt maturity could be accelerated or other remedies could be sought by the lenders. As of September 30, 2023, the Company was in compliance with all covenants. In the event of a change of control, each holder of the 2025 Senior Notes will have the right to require the Company to repurchase all or any part of the outstanding balance at a purchase price of 101% of the principal amount of the 2025 Senior Notes repurchased, plus accrued and unpaid interest, if any, to, but not including, the date of such repurchase. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS U.S. GAAP requires the categorization of fair value measurement into three broad levels which form a hierarchy based on the transparency of inputs to the valuation. Level 1 – Quoted prices in active markets for identical instruments. Level 2 – Valuations based principally on other observable market parameters, including: • Quoted prices in active markets for similar instruments, • Quoted prices in less active or inactive markets for identical or similar instruments, • Other observable inputs (such as interest rates, yield curves, volatilities, prepayment rates (“CPR”), loss severities, credit risks and default rates (“CDR”)), and • Market corroborated inputs (derived principally from or corroborated by observable market data). Level 3 – Valuations based significantly on unobservable inputs. Rithm Capital follows this hierarchy for its fair value measurements. The classifications are based on the lowest level of input that is significant to the fair value measurement. The carrying values and fair values of assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of September 30, 2023 were as follows: Principal Balance or Notional Amount Carrying Value Fair Value Level 1 Level 2 Level 3 Total Assets Excess MSRs (A) $ 61,988,328 $ 282,976 $ — $ — $ 282,976 $ 282,976 MSRs and MSR financing receivables (A) 530,921,220 8,694,868 — — 8,694,868 8,694,868 Servicer advance investments 314,165 387,669 — — 387,669 387,669 Real estate and other securities (B) 26,859,938 10,193,596 992,183 8,300,246 901,228 10,193,657 Residential mortgage loans, held-for-sale 96,395 78,683 — — 78,683 78,683 Residential mortgage loans, held-for-sale, at fair value 2,787,891 2,740,599 — 2,601,246 139,353 2,740,599 Residential mortgage loans, held-for-investment, at fair value 462,187 370,957 — — 370,957 370,957 Residential mortgage loans subject to repurchase 1,443,546 1,443,546 — 1,443,546 — 1,443,546 Consumer loans 1,475,494 1,436,080 — — 1,436,080 1,436,080 Mortgage loans receivable (C) 2,135,424 2,135,424 — 348,062 1,787,362 2,135,424 Notes receivable 103,082 33,250 — — 33,250 33,250 Loans receivable 30,109 30,109 — — 30,109 30,109 Cash, cash equivalents and restricted cash 1,585,730 1,585,730 1,585,730 — — 1,585,730 Other assets (D) N/A 19,626 — — 19,626 19,626 Derivative assets 31,135,387 63,532 — 49,781 13,751 63,532 $ 29,496,645 $ 2,577,913 $ 12,742,881 $ 14,175,912 $ 29,496,706 Liabilities Secured financing agreements $ 13,605,832 $ 13,605,380 $ — $ 13,605,380 $ — $ 13,605,380 Secured notes and bonds payable (E) 10,071,997 9,964,855 — 307,228 10,029,723 10,336,951 Unsecured senior notes, net of issuance costs 546,374 546,374 — — 523,133 523,133 Residential mortgage loan repurchase liability 1,443,546 1,443,546 — 1,443,546 — 1,443,546 Derivative liabilities 1,238,456 9,639 — 2,386 7,253 9,639 $ 25,569,794 $ — $ 15,358,540 $ 10,560,109 $ 25,918,649 (A) The notional amount represents the total unpaid principal balance of the residential mortgage loans underlying the MSRs, MSR financing receivables and Excess MSRs. Rithm Capital does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios. (B) Includes U.S. Treasury Bills classified as Level 1 and held at amortized cost basis of $992.1 million (see Note 7). (C) Includes Rithm Capital’s economic interests in the VIEs consolidated and accounted for under the collateralized financing entity (“CFE”) election. As of September 30, 2023, the fair value of Rithm Capital’s interests in the mortgage loans receivable securitization was $50.6 million. (D) Excludes the indirect equity investment in a commercial redevelopment project accounted for at fair value on a recurring basis based on NAV of Rithm Capital’s investment. The investment had a fair value of $0 as of September 30, 2023. (E) Includes SCFT 2020-A and 2022-RTL1 mortgage-backed securities issued for which the fair value option for financial instruments was elected and resulted in a fair value of $552.9 million as of September 30, 2023. The following table summarizes assets measured at fair value on a recurring basis using Level 3 inputs: Level 3 Total Excess MSRs (A)(B) MSRs and MSR Financing Receivables (A) Servicer Advance Investments Non-Agency RMBS Derivatives (C) Residential Mortgage Loans Consumer Loans Notes and Loans Receivable Mortgage Loans Receivable Balance at December 31, 2022 $ 321,803 $ 8,889,403 $ 398,820 $ 950,860 $ 8,786 $ 713,896 $ 363,756 $ 94,401 $ 1,714,053 $ 13,455,778 Transfers Transfers from Level 3 — — — — — (41,430) — — (253,885) (295,315) Transfers to Level 3 — — — — — 20,421 — — — 20,421 Gain (loss) included in net income Credit losses on securities (D) — — — 371 — — — — — 371 Servicing revenue, net (E) Included in servicing revenue (E) — (99,338) — — — — — — — (99,338) Change in fair value of: Excess MSRs (D) (11,862) — — — — — — — — (11,862) Change in fair value of excess MSRs, equity method investees (D) — — — — — — — — — — Servicer advance investments — — 20,273 — — — — — — 20,273 Residential mortgage loans — — — — — (9,548) — — — (9,548) Consumer loans — — — — — — (14,024) — — (14,024) Gain (loss) on settlement of investments, net 284 — — — — — — — 284 Other income (loss), net (D) (134) — — (3,028) (2,288) 42,421 — 231 — 37,202 Gains (losses) included in OCI (F) — — — 685 — — — — — 685 Interest income 16,733 — 16,257 21,121 — — 21,281 4,422 — 79,814 Purchases, sales and repayments Purchases, net (G) — — 644,594 32,600 — 38,335 1,317,347 35,000 146,631 2,214,507 Proceeds from sales (900) (704,657) — — — (239,446) 20,675 — — (924,328) Proceeds from repayments (42,948) — (692,275) (101,381) — (69,718) (272,955) (70,695) (1,286,661) (2,536,633) Originations and other — 609,460 — — — 55,379 — — 1,467,224 2,132,063 Balance at September 30, 2023 $ 282,976 $ 8,694,868 $ 387,669 $ 901,228 $ 6,498 $ 510,310 $ 1,436,080 $ 63,359 $ 1,787,362 $ 14,070,350 (A) Includes the recapture agreement for each respective pool, as applicable. (B) Amounts include Rithm Capital’s portion of the Excess MSRs held by the respective joint ventures in which Rithm Capital has a 50% interest. (C) For the purpose of this table, the IRLC asset and liability positions are shown net. (D) Gain (loss) recorded in earnings during the period is attributable to the change in unrealized gain (loss) relating to Level 3 assets still held at the reporting dates and realized gain (loss) recorded during the period. (E) See Note 5 for further details on the components of servicing revenue, net. (F) Gain (loss) included in unrealized gain (loss) on available-for-sale securities, net in the Consolidated Statements of Comprehensive Income. (G) Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection. Liabilities measured at fair value on a recurring basis using Level 3 inputs changed as follows: Level 3 Asset-Backed Securities Issued Balance at December 31, 2022 $ 319,486 Gains (losses) included in net income Other income (A) (200) Purchases, sales and repayments Proceeds from sales — Payments (73,591) Balance at September 30, 2023 $ 245,695 (A) Gain (loss) recorded in earnings during the period is attributable to the change in unrealized gain (loss) relating to Level 3 liabilities still held at the reporting dates and realized gain (loss) recorded during the period. Excess MSRs, MSRs and MSR Financing Receivables Valuation The following table summarizes certain information regarding the ranges and weighted averages of inputs used as of September 30, 2023: Significant Inputs (A) Prepayment (B) Delinquency (C) Recapture (D) Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) (E) Collateral Weighted Average Maturity (Years) (F) Excess MSRs Directly Held 2.3% – 11.0% (5.9%) 0.2% – 8.9% (4.4%) 0.0% – 90.7% (55.3%) 7 – 59 (20) 11 – 27 (21) Excess MSRs Held through Investees 6.3% – 9.0% (7.8%) 2.2% – 5.6% (3.5%) 45.1% – 64.3% (59.0%) 16 – 25 (21) 15 – 21 (19) MSRs and MSR Financing Receivables (G) Agency 3.0% – 83.7% (6.4%) 0.1% – 66.7% (2.1%) — (H) 7 – 108 (26) 0 – 40 (23) Non-Agency 0.1% – 84.4% (11.8%) 0.7% – 70.0% (22.2%) — (H) 10 – 188 (46) 0 – 40 (24) Ginnie Mae 5.4% – 81.5% (8.9%) 0.2% – 71.4% (8.6%) — (H) 18 – 116 (43) 0 – 40 (27) Total/Weighted Average — MSRs and MSR Financing Receivables 0.1% – 84.4% (7.6%) 0.1% – 71.4% (5.7%) — (H) 7 – 188 (33) 0 – 40 (24) (A) Weighted by fair value of the portfolio. (B) Projected annualized weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (C) Projected percentage of residential mortgage loans in the pool for which the borrower will miss a mortgage payments. (D) Percentage of voluntarily prepaid loans that are expected to be refinanced by the related servicer or subservicer, as applicable. (E) Weighted average total mortgage servicing amount, in excess of the basic fee as applicable, measured in basis points (“bps”). A weighted average cost of subservicing of $6.91 – $7.18 ($6.96) per loan per month was used to value the agency MSRs. A weighted average cost of subservicing of $7.47 – $9.55 ($9.14) per loan per month was used to value the Non-Agency MSRs, including MSR financing receivables. A weighted average cost of subservicing of $8.36 per loan per month was used to value the Ginnie Mae MSRs. (F) Weighted average maturity of the underlying residential mortgage loans in the pool. (G) For certain pools, recapture rate represents the expected recapture rate with the successor subservicer appointed by NRM. (H) Recapture is not considered a significant input for MSRs and MSR financing receivables. With respect to valuing the PHH-serviced MSRs and MSR financing receivables, which include a significant servicer advances receivable component, the cost of financing servicer advances receivable is assumed to be SOFR plus 4.1%. As of September 30, 2023, a weighted average discount rate of 8.8% (range of 8.5% – 9.0%) was used to value Rithm Capital’s Excess MSRs (directly and through equity method investees). As of September 30, 2023, a weighted average discount rate of 8.5% (range of 7.9% – 10.8%) was used to value Rithm Capital’s MSRs and MSR financing receivables. Servicer Advance Investments Valuation The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing the servicer advance investments, including the basic fee component of the related MSRs: Significant Inputs Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans Prepayment Rate (A) Delinquency Mortgage Servicing Amount (B) Discount Rate Collateral Weighted Average Maturity (Years) (C) September 30, 2023 1.1% – 2.2% (2.2%) 2.6% – 4.4% (4.4%) 3.3% – 20.5% (20.1%) 18.2 – 19.9 (19.8) bps 6.2% – 6.7% (6.2%) 21.2 – 21.9 (21.9) (A) Projected annual weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (B) Mortgage servicing amount is net of 2.7 bps which represents the amount Rithm Capital paid its servicers as a monthly servicing fee. (C) Weighted average maturity of the underlying residential mortgage loans in the pool. Real Estate and Other Securities Valuation As of September 30, 2023, real estate securities valuation methodology and results are detailed below. Treasury securities are valued using market-based prices published by the U.S. Department of the Treasury and classified as Level 1. Fair Value Asset Type Outstanding Face Amount Amortized Cost Basis Multiple Quotes (A) Single Quote (B) Total Level Agency RMBS $ 8,731,597 $ 8,554,197 $ 8,300,246 $ — $ 8,300,246 2 Non-Agency RMBS (C) 17,128,341 899,828 901,228 — 901,228 3 Total $ 25,859,938 $ 9,454,025 $ 9,201,474 $ — $ 9,201,474 (A) Rithm Capital generally obtained pricing service quotations or broker quotations from two sources, one of which was generally the seller (the party that sold Rithm Capital the security) for Non-Agency RMBS. Rithm Capital evaluates quotes received, determines one as being most representative of fair value and does not use an average of the quotes. Even if Rithm Capital receives two or more quotes on a particular security that come from non-selling brokers or pricing services, it does not use an average because it believes using an actual quote more closely represents a transactable price for the security than an average level. Furthermore, in some cases, for Non-Agency RMBS, there is a wide disparity between the quotes Rithm Capital receives. Rithm Capital believes using an average of the quotes in these cases would not represent the fair value of the asset. Based on Rithm Capital’s own fair value analysis, it selects one of the quotes which is believed to more accurately reflect fair value. Rithm Capital has not adjusted any of the quotes received in the periods presented. These quotations are generally received via email and contain disclaimers which state that they are “indicative” and not “actionable” — meaning that the party giving the quotation is not bound to purchase the security at the quoted price. Rithm Capital’s investments in Agency RMBS are classified within Level 2 of the fair value hierarchy because the market for these securities is very active and market prices are readily observable. The third-party pricing services and brokers engaged by Rithm Capital (collectively, “valuation providers”) use either the income approach or the market approach, or a combination of the two, in arriving at their estimated valuations of RMBS. Valuation providers using the market approach generally look at prices and other relevant information generated by market transactions involving identical or comparable assets. Valuation providers using the income approach create pricing models that generally incorporate such assumptions as discount rates, expected prepayment rates, expected default rates and expected loss severities. Rithm Capital has reviewed the methodologies utilized by its valuation providers and has found them to be consistent with GAAP requirements. In addition to obtaining multiple quotations, when available, and reviewing the valuation methodologies of its valuation providers, Rithm Capital creates its own internal pricing models for Level 3 securities and uses the outputs of these models as part of its process of evaluating the fair value estimates it receives from its valuation providers. These models incorporate the same types of assumptions as the models used by the valuation providers, but the assumptions are developed independently. These assumptions are regularly refined and updated at least quarterly by Rithm Capital and reviewed by its valuation group, which is separate from its investment acquisition and management group, to reflect market developments and actual performance. For 62.2% of Non-Agency RMBS, the ranges and weighted averages of assumptions used by Rithm Capital’s valuation providers are summarized in the table below. The assumptions used by Rithm Capital’s valuation providers with respect to the remainder of Non-Agency RMBS were not readily available. Fair Value Discount Rate Prepayment Rate (a) CDR (b) Loss Severity (c) Non-Agency RMBS $ 560,081 5.7% – 15.0% (9.3%) 0.0% – 40.7% (7.1%) 0.0% – 2.4% (0.4%) 0.0% – 75.9% (13.0%) (a) Represents the annualized rate of the prepayments as a percentage of the total principal balance of the pool. (b) Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance of the pool. (c) Represents the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding balance. (B) Rithm Capital was unable to obtain quotations from more than one source on these securities. (C) Includes Rithm Capital’s investments in interest-only notes for which the fair value option for financial instruments was elected. Residential Mortgage Loans Valuation Rithm Capital, through its Mortgage Company, originates residential mortgage loans that it intends to sell into Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securitizations. Residential mortgage loans held-for-sale, at fair value are typically pooled together and sold into certain exit markets, depending upon underlying attributes of the loan, such as agency eligibility, product type, interest rate and credit quality. The Mortgage Company also originates non-qualified mortgage loans that it intends to sell to private investors. Residential mortgage loans held-for-sale, at fair value are valued using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. As these prices are derived from market observable inputs, Rithm Capital classifies these valuations as Level 2 in the fair value hierarchy. Originated residential mortgage loans held-for-sale for which there is little to no observable trading activity of similar instruments are valued using Level 3 measurements based upon dealer price quotes or historical sale transactions for similar loans. Residential mortgage loans held-for-sale, at fair value also includes nonconforming seasoned mortgage loans acquired and identified for securitization, which are valued using internal pricing models to forecast loan level cash flows based on a potential securitization exit using inputs such as default rates, prepayments speeds and discount rates, and may include adjustments based on consensus pricing (broker quotes). As the internal pricing model is based on certain unobservable inputs, Rithm Capital classifies these valuations as Level 3 in the fair value hierarchy. For non-performing loans, asset liquidation cash flows are derived based on the estimated time to liquidate the loan, the estimated value of the collateral, expected costs and estimated home price levels. Estimated cash flows for both performing and non-performing loans are discounted at yields considered appropriate to arrive at a reasonable exit price for the asset. Rithm Capital classifies these valuations as Level 3 in the fair value hierarchy. The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing residential mortgage loans held-for-sale, at fair value classified as Level 3: Performing Loans Fair Value Discount Rate Prepayment Rate CDR Loss Severity Acquired loans $ 43,697 8.7% – 9.2% (9.0%) 1.9% – 7.7% (5.4%) 2.3% – 10.0% (5.4%) 12.1% – 61.0% (21.3%) Originated loans (A) 65,822 6.0% 1.0% - 42.1% (5.3%) 0.1% - 41.4% (3.0%) 0.1% - 63.3% (12.5%) Residential mortgage loans held-for-sale, at fair value $ 109,519 Non-Performing Loans Fair Value Discount Rate Annual change in home prices Liquidation Timeline Current Value of Underlying Properties Acquired loans $ 19,807 8.6% – 9.1% (8.9%) 6.1%– 12.7% (8.1%) 2.0 – 6.4 (2.9) 227.1% – 782.5% (279.9%) Originated loans (A) 10,027 6.0% N/A 0.5 - 9.2 (1.9) N/A Residential mortgage loans held-for-sale, at fair value $ 29,834 (A) Includes inputs for 47.9% and 76.9% of originated performing and non-performing loans, respectively, classified as Level 3. The remainder of performing and non-performing loans were priced using dealer price quotes and historical sale transactions for similar loans with a range of 49.2% - 100.0% (87.9%). The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing residential mortgage loans held-for-investment, at fair value classified as Level 3: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Residential mortgage loans held-for-investment, at fair value $ 370,957 8.7% – 9.2% (8.9%) 3.6% – 5.0% (4.4%) 6.9% – 17.0% (9.3%) 21.1% – 61.0% (41.2%) Consumer Loans Valuation The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing consumer loans held-for-investment, at fair value, classified as Level 3: Fair Value Discount Rate Prepayment Rate CDR Loss Severity SpringCastle $ 303,881 8.4% – 9.4% (8.6%) 9.1% – 36.6% (17.7%) 1.7% – 7.5% (4.7%) 60.0% – 60.0% (60.0%) Marcus 1,132,199 11.1% 20.5% 5.3% 7.0% Consumer loans, held-for-investment, at fair value $ 1,436,080 Mortgage Loans Receivable Valuation The estimated fair value of originated loans approximates carrying value as most are variable-rate that reprice frequently and with minimal credit risk and severity risk. Fair value of acquired loans purchased on August 24, 2023 approximates purchase price given the recency of acquisition. Rithm Capital classifies mortgage loans receivable as Level 3 in the fair value hierarchy. Rithm Capital has securitized certain mortgage loans receivable which are held as part of a collateralized financing entity (“CFE”). A CFE is a variable interest entity that holds financial assets, issues beneficial interests in those assets and has no more than nominal equity, and the beneficial interests have contractual recourse only to the related assets of the CFE. GAAP allows entities to elect to measure both the financial assets and financial liabilities of the CFE using the more observable of the fair value of the financial assets and the fair value of the financial liabilities of the CFE. Rithm Capital has elected the fair value option for initial and subsequent recognition of the debt issued by its consolidated securitization trust and has determined that the consolidated securitization trust meets the definition of a CFE. See Note 20 for further discussion regarding VIEs and securitization trusts. Rithm Capital determined the inputs to the fair value measurement of the financial liabilities of its CFE to be more observable than those of the financial assets and, as a result, has used the fair value of the financial liabilities of the CFE to measure the fair value of the financial assets of the CFE. The fair value of the debt issued by the CFE is typically valued using external pricing data, which includes third-party valuations. The securitized mortgage loans receivable, which are assets of the CFE, are included in mortgage loans receivable, at fair value, on the Company’s Consolidated Balance Sheets. The debt issued by the CFE is included in Secured Notes and Bonds Payable on the Company’s Consolidated Balance Sheets. Unrealized gain (loss) from changes in fair value of the debt issued by the CFE is included in other income (loss), net in the Company’s Consolidated Statements of Operations. The securitized mortgage loans receivable and the debt issued by the Company’s CFE are both classified as Level 2. Derivatives Valuation Rithm Capital enters into economic hedges including interest rate swaps, caps and TBAs, which are categorized as Level 2 in the valuation hierarchy. Rithm Capital generally values such derivatives using quotations, similarly to the method of valuation used for Rithm Capital’s other assets that are classified as Level 2 in the fair value hierarchy. As a part of the mortgage loan origination business, Rithm Capital enters into forward loan sale and securities delivery commitments, which are valued based on observed market pricing for similar instruments and therefore, are classified as Level 2. In addition, Rithm Capital enters into IRLCs, which are valued using internal pricing models (i) incorporating market pricing for instruments with similar characteristics, (ii) estimating the fair value of the servicing rights expected to be recorded at sale of the loan and (iii) adjusting for anticipated loan funding probability. Both the fair value of servicing rights expected to be recorded at the date of sale of the loan and anticipated loan funding probability are significant unobservable inputs and therefore, IRLCs are classified as Level 3 in the fair value hierarchy. The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing IRLCs: Fair Value Loan Funding Probability Fair Value of Initial Servicing Rights (Bps) IRLCs, net $ 6,498 0.3% – 100.0% (82.6%) 0.7 – 345.0 (222.4) Asset-Backed Securities Issued Rithm Capital was deemed to be the primary beneficiary of the SCFT 2020-A securitization, and therefore, Rithm Capital’s Consolidated Balance Sheets include the asset-backed securities issued by the SCFT 2020-A trust. Rithm Capital elected the fair value option for these financial instruments and the asset-backed securities issued were valued consistently with Rithm Capital’s Non-Agency RMBS described above. The following table summarizes certain information regards the ranges and weighted averages of inputs used in valuing Asset-Backed Securities Issued: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Asset-backed securities issued $ 245,695 6.4% 17.7% 4.7% 93.5% Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets are measured at fair value on a nonrecurring basis; that is, they are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances, such as when there is evidence of impairment. For residential mortgage loans held-for-sale and foreclosed real estate accounted for as REO, Rithm Capital applies the lower of cost or fair value accounting and may be required, from time to time, to record a nonrecurring fair value adjustment. Upon the occurrence of certain events, the Company re-measures the fair value of long-lived assets, including property, plant and equipment, SFR Properties, operating lease ROU assets, intangible assets and goodwill if an impairment or observable price adjustment is recognized in the current period. At September 30, 2023, assets measured at fair value on a nonrecurring basis were $85.5 million. The $85.5 million of assets include approximately $78.7 million of residential mortgage loans held-for-sale and $6.8 million of REO. The fair value of Rithm Capital’s residential mortgage loans, held-for-sale is estimated based on a discounted cash flow model analysis using internal pricing models and is categorized within Level 3 of the fair value hierarchy. The following table summarizes the inputs used in valuing these residential mortgage loans as of September 30, 2023: Fair Value and Carrying Value Discount Rate Weighted Average Life (Years) (A) Prepayment Rate CDR (B) Loss Severity (C) Performing loans $ 57,229 5.3% – 9.2% (8.9%) 4.6 – 5.6 (4.7) 1.9% – 5.0% (4.7%) 6.9% – 13.8% (7.5%) 21.1% – 61.0% (22.2%) Non-performing loans 21,454 8.6% – 10.0% (9.3%) 2.0 – 6.4 (3.2) 1.9% – 4.5% (2.9%) 11.8% – 37.7% (25.0%) 34.8% – 65.1% (41.5%) Total/weighted average $ 78,683 9.0% 4.3 4.2% 12.3% 27.5% (A) The weighted average life is based on the expected timing of the receipt of cash flows. (B) Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance. (C) Loss severity is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding loan balance. The fair value of REO is estimated using a broker’s price opinion discounted based upon Rithm Capital’s experience with actual liquidation values and, therefore, is categorized within Level 3 of the fair value hierarchy. These discounts to the broker price opinion generally range from 10% – 25% (weighted average of 21%), depending on the information available to the broker. The total change in the recorded value of assets for which a fair value adjustment has been included in the Consolidated Statements of Operations for the nine months ended September 30, 2023 consisted of a reversal of valuation allowance of $3.9 million for residential mortgage loans and a reversal of valuation allowance of $1.1 million for REO. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES In the normal course of business, Rithm Capital enters into transactions with special purpose entities (“SPEs”), which primarily consist of trusts established for a limited purpose. The SPEs have been formed for the purpose of transactions in which the Company transfers assets into an SPE in return for various forms of debt obligations supported by those assets. In these transactions, the Company typically receives cash and/or other interests in the SPE as proceeds for the transferred assets. The Company retains the right to service the transferred receivables. The Company evaluates its interests in each SPE for classification as a variable interest entity (“VIE”). VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. A VIE is required to be consolidated only by its primary beneficiary, which is defined as the party who has the power to direct the activities of a VIE that most significantly impact its economic performance and who has the obligation to absorb losses or the right to receive benefits from the VIE that could be potentially significant to the VIE. To assess whether Rithm Capital has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, Rithm Capital considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes identifying (i) the activities that most significantly impact the VIE’s economic performance and (ii) which party, if any, has power over those activities. To assess whether Rithm Capital has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, Rithm Capital considers all of its economic interests and applies judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. When an SPE meets the definition of a VIE and the Company determines that it is the primary beneficiary, the Company includes the SPE in its consolidated financial statements. For certain consolidated VIEs, Rithm Capital has elected to account for the assets and liabilities of these entities as collateralized financing entities (“CFE”). A CFE is a variable interest entity that holds financial assets and issues beneficial interests in those assets, and these beneficial interests have contractual recourse only to the related assets of the CFE. Accounting guidance under GAAP for CFEs allows companies to elect to measure both the financial assets and financial liabilities of a CFE using the more observable of the fair value of the financial assets or fair value of the financial liabilities. The net equity in an entity accounted for under the CFE election effectively represents the fair value of the beneficial interests Rithm Capital owns in the entity. Consolidated VIEs Servicer Advances Rithm Capital, through a taxable wholly-owned subsidiary, is the managing member of Advance Purchaser and owned approximately 89.3% of Advance Purchaser as of September 30, 2023 and is deemed to be the primary beneficiary of Advance Purchaser as a result of its ability to direct activities that most significantly impact the economic performance of the entities and its ownership of a significant equity investment. See Note 6 for details. Newrez Joint Ventures A wholly-owned subsidiary of Newrez, Newrez Ventures LLC (formerly known as Shelter Mortgage Company LLC) (“Newrez Ventures”), is a mortgage originator specializing in retail originations. Newrez Ventures operates its business through a series of joint ventures (“Newrez JVs”) and is deemed to be the primary beneficiary of the joint ventures as a result of its ability to direct activities that most significantly impact the economic performance of the entities and its ownership of a significant equity investment. Residential Mortgage Loans In May 2021, Newrez issued $750.0 million in notes through a securitization facility (the “2021-1 Securitization Facility”) that bear interest at 30-day SOFR plus a margin. The 2021-1 Securitization Facility is secured by newly originated, first-lien, fixed- and adjustable-rate residential mortgage loans eligible for purchase by the GSEs and Ginnie Mae. Through a master repurchase agreement, Newrez sells its originated residential mortgage loans to the 2021-1 Securitization Facility, which then issues notes to third party qualified investors, with Newrez retaining the trust certificate. The loans serve as collateral with the proceeds from the note issuance ultimately financing the originations. The 2021-1 Securitization Facility will terminate on the earlier of (i) the three-year anniversary of the initial closing date, (ii) the Company exercising its right to optional prepayment in full or (iii) a repurchase triggering event. The Company determined it is the primary beneficiary of the 2021-1 Securitization Facility as it has both (i) the power to direct the activities of a VIE that most significantly impact its economic performance and (ii) the obligation to absorb losses or the right to receive benefits from the VIE that could be potentially significant to the VIE. Caliber Mortgage Participant I, LLC was formed to acquire, receive, participate, hold, release and dispose of participation interests in certain of Caliber’s residential mortgage loans held for sale (“MLHFS PC”). The Caliber Mortgage Participant I, LLC transfers the MLHFS PC in exchange for cash. Caliber is the primary beneficiary of the VIE and therefore, consolidates the SPE. The transferred MLHFS PC is classified on the Consolidated Balance Sheets as Residential Mortgage Loans, Held-for-Sale and the related warehouse credit facility liabilities as part of Secured Financing Agreements. Caliber retains the risks and benefits associated with the assets transferred to the SPEs. Caliber remains the servicer of the underlying residential mortgage loans and has the power to direct the SPE’s activities. Holders of the term notes issued by the Trust can look only to the assets of the Trust for satisfaction of the debt and have no recourse against Caliber. Consumer Loan Companies Rithm Capital has a co-investment in a portfolio of consumer loans held through the Consumer Loan Companies. As of September 30, 2023, Rithm Capital owns 53.5% of the limited liability company interests in, and consolidates, the Consumer Loan Companies. On September 25, 2020, certain entities comprising the Consumer Loan Companies, in a private transaction, issued $663.0 million of asset-backed notes (“SCFT 2020-A”) securitized by a portfolio of consumer loans. The Consumer Loan Companies consolidate certain entities that issued securitized debt collateralized by the consumer loans (the “Consumer Loan SPVs”). The Consumer Loan SPVs are VIEs of which the Consumer Loan Companies are the primary beneficiaries. Securitized Mortgage Loans Receivable In March 2022, Rithm Capital formed a securitization facility that issued securitized debt collateralized by mortgage loans receivable (the “2022-RTL1 Securitization”). The 2022-RTL1 Securitization consists of a pool of performing, adjustable-rate and fixed-rate, interest-only, mortgage loans (construction, renovation and bridge), secured by a first lien or a first and second lien on a non-owner occupied mortgaged property with original terms to maturity of up to 36 months, with an aggregate UPB of approximately $348.1 million and an aggregate principal limit of approximately $433.5 million as of September 30, 2023. In addition to pass-through certificates sold to third parties, Rithm Capital acquired all of the residual tranche certificate, which bears no interest, for $20.9 million. Rithm Capital evaluated the purchased residual tranche certificate as a variable interest in the trust and concluded that the residual tranche certificate will absorb a majority of the trust’s expected losses or receive a majority of the trust’s expected residual returns. Rithm Capital also concluded that the securitization’s asset manager, a wholly-owned subsidiary of Rithm Capital, has the ability to direct activities that could impact the trust’s economic performance. As a result, Rithm Capital consolidates the trust. The table below presents the carrying value and classification of the assets and liabilities of consolidated VIEs on the Consolidated Balance Sheets: Advance Purchaser Newrez Joint Ventures Residential Mortgage Loans Consumer Loan SPVs Mortgage Loans Receivable Total September 30, 2023 Assets Servicer advance investments, at fair value $ 378,664 $ — $ — $ — $ — $ 378,664 Residential mortgage loans, held-for-sale, at fair value — — 1,094,978 — — 1,094,978 Consumer loans — — — 303,881 — 303,881 Mortgage loans receivable — — — — 348,061 348,061 Cash and cash equivalents 5,241 21,177 4,410 — — 30,828 Restricted cash 8,151 — 9,378 6,375 12,859 36,763 Other assets 9 410 — 4,528 — 4,947 Total Assets $ 392,065 $ 21,587 $ 1,108,766 $ 314,784 $ 360,920 2,198,122 Liabilities Secured notes and bonds payable (A) 271,488 — 995,361 245,695 307,228 1,819,772 Accrued expenses and other liabilities 2,612 3,257 74 1,422 3,100 10,465 Total Liabilities $ 274,100 $ 3,257 $ 995,435 $ 247,117 $ 310,328 $ 1,830,237 December 31, 2022 Assets Servicer advance investments, at fair value $ 387,675 $ — $ — $ — $ — $ 387,675 Residential mortgage loans, held-for-investment, at fair value — — 22,699 — — 22,699 Residential mortgage loans, held-for-sale, at fair value — — 844,000 — — 844,000 Mortgage loans receivable — — — — 349,975 349,975 Consumer loans — — — 363,756 — 363,756 Cash and cash equivalents 34,084 28,404 23,473 — — 85,961 Restricted cash 7,433 — 7,547 6,652 9,368 31,000 Other assets 9 1,026 165,975 5,253 (238) 172,025 Total Assets $ 429,201 $ 29,430 $ 1,063,694 $ 375,661 $ 359,105 $ 2,257,091 Liabilities Secured financing agreements (A) — — 51,325 — — 51,325 Secured notes and bonds payable (A) 313,093 — 768,959 299,498 312,918 1,694,468 Accrued expenses and other liabilities 1,928 4,306 25,381 1,144 349 33,108 Total Liabilities $ 315,021 $ 4,306 $ 845,665 $ 300,642 $ 313,267 $ 1,778,901 (A) The creditors of the VIEs do not have recourse to the general credit of Rithm Capital, and the assets of the VIEs are not directly available to satisfy Rithm Capital’s obligations. Non-Consolidated VIEs The following table summarizes the carrying value of the Company’s unconsolidated bonds retained pursuant to required risk retention regulations which reflects the Company’s maximum exposure to loss, as well as the UPB of transferred loans. These bonds are grouped and presented as part of real estate and other securities on the Consolidated Balance Sheets: As of and for the Nine Months Ended September 30, 2023 2022 Residential mortgage loan UPB and other collateral $ 10,809,466 $ 12,137,481 Weighted average delinquency (A) 4.2 % 4.9 % Net credit losses $ 167,519 $ 170,439 Face amount of debt held by third parties (B) $ 9,840,864 $ 11,228,461 Carrying value of bonds retained by Rithm Capital (C)(D) $ 867,134 $ 920,904 Cash flows received by Rithm Capital on these bonds $ 113,527 $ 173,765 (A) Represents the percentage of the UPB that is 60+ days delinquent. (B) Excludes bonds retained by Rithm Capital. (C) Includes bonds retained pursuant to required risk retention regulations. (D) Classified within Level 3 of the fair value hierarchy as the valuation is based on certain unobservable inputs including discount rate, prepayment rates and loss severity. See Note 19 for details on unobservable inputs. The following table summarizes the carrying value of the Company’s unconsolidated commercial real estate projects which reflects the Company’s maximum exposure to loss. See Note 22 regarding certain guarantees provided in connection with the investments. These investments are grouped and presented as part of Equity investments within Other assets on the Consolidated Balance Sheets: September 30, 2023 December 31, 2022 Carrying value of commercial real estate held within unconsolidated VIEs $ 48,438 $ — Carrying value of Rithm’s investments in unconsolidated commercial real estate VIEs $ 19,933 $ — Noncontrolling Interests Noncontrolling interests represent the ownership interests in certain consolidated subsidiaries held by entities or persons other than Rithm Capital. These interests are related to noncontrolling interests in consolidated entities that hold Rithm Capital’s servicer advance investments (Note 6), the Newrez JVs (Note 8) and Consumer loans (Note 9). Others’ interests in the equity of consolidated subsidiaries is computed as follows: September 30, 2023 December 31, 2022 Advance Purchaser (A) Newrez Joint Ventures Consumer Loan Companies Advance Purchaser (A) Newrez Joint Ventures Consumer Loan Companies Total consolidated equity $ 117,966 $ 18,330 $ 82,007 $ 114,180 $ 25,124 $ 91,263 Others’ ownership interest 10.7 % 49.5 % 46.5 % 10.7 % 49.5 % 46.5 % Others’ interest in equity of consolidated subsidiary $ 12,600 $ 9,073 $ 38,234 $ 12,193 $ 12,437 $ 42,437 Others’ interests in the net income (loss) is computed as follows: Three Months Ended September 30, 2023 2022 Advance Purchaser (A) Newrez Joint Ventures Consumer Loan Companies Advance Purchaser (A) Newrez Joint Ventures Consumer Loan Companies Net income (loss) $ 13,229 $ 544 $ 6,806 $ (1,296) $ 952 $ 15,000 Others’ ownership interest 10.7 % 49.5 % 46.5 % 10.7 % 49.5 % 46.5 % Others’ interest in net income (loss) of consolidated subsidiary $ 1,414 $ 269 $ 3,165 $ (139) $ 471 $ 6,975 Nine Months Ended September 30, 2023 2022 Advance Purchaser (A) Newrez Joint Ventures Consumer Loan Companies Advance Purchaser (A) Newrez Joint Ventures Consumer Loan Companies Net income (loss) $ 19,786 $ 1,238 $ 16,582 $ 1,219 $ 4,374 $ 53,340 Others’ ownership interest 10.7 % 49.5 % 46.5 % 10.7 % 49.5 % 46.5 % Others’ interest in net income (loss) of consolidated subsidiary $ 2,113 $ 613 $ 7,711 $ 130 $ 2,165 $ 24,803 (A) Rithm Capital owned 89.3% of Advance Purchaser as of September 30, 2023 and 2022. |
EQUITY AND EARNINGS PER SHARE
EQUITY AND EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EQUITY AND EARNINGS PER SHARE | EQUITY AND EARNINGS PER SHARE Equity and Dividends Rithm Capital’s certificate of incorporation authorizes 2.0 billion shares of common stock, par value $0.01 per share, and 100.0 million shares of preferred stock, par value $0.01 per share. On August 5, 2022, Rithm Capital entered into a Distribution Agreement to sell shares of its common stock, par value $0.01 per share (the “ATM Shares”), having an aggregate offering price of up to $500.0 million, from time to time, through an “at-the-market” equity offering program (the “ATM Program”). No share issuances were made during the nine months ended September 30, 2023 under the ATM Program. On December 15, 2022, Rithm Capital’s board of directors approved the Stock Repurchase Program authorizing the repurchase of up to $200.0 million of its common stock and $100.0 million of its preferred stock through December 31, 2023. The objective of the Stock Repurchase Program is to seek flexibility to return capital when deemed accretive to shareholders. Repurchases may be made from time to time through open market purchases or privately negotiated transactions, pursuant to one or more plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934 or by means of one or more tender offers, in each case, as permitted by securities laws and other legal requirements. During the nine months ended September 30, 2023, the Company did not repurchase any shares of its common stock or preferred stock. Purchases and sales of Rithm Capital’s securities by the Company’s officers and directors are subject to the Rithm Capital Corp. Insider Trading Compliance Policy. Further, as of September 30, 2023, the Company has not established a trading plan pursuant to Rule 10b5-1 under the Exchange Act. The table below summarizes preferred shares: Dividends Declared per Share Number of Shares Three Months Ended Nine Months Ended Series September 30, 2023 December 31, 2022 Liquidation Preference (A) Issuance Discount Carrying Value (B) 2023 2022 2023 2022 Series A, 7.50% issued July 2019 (C) 6,200 6,200 $ 155,002 3.15 % $ 149,822 $ 0.47 $ 0.47 $ 1.41 $ 1.41 Series B, 7.125% issued August 2019 (C) 11,261 11,261 281,518 3.15 % 272,654 0.45 0.45 1.34 1.34 Series C, 6.375% issued February 2020 (C) 15,903 15,903 397,584 3.15 % 385,289 0.40 0.40 1.20 1.20 Series D, 7.00% issued September 2021 (D) 18,600 18,600 465,000 3.15 % 449,489 0.44 0.44 1.31 1.31 Total 51,964 51,964 $ 1,299,104 $ 1,257,254 $ 1.76 $ 1.76 $ 5.26 $ 5.26 (A) Each series has a liquidation preference or par value of $25.00 per share. (B) Carrying value reflects par value less discount and issuance costs. (C) Fixed-to-floating rate cumulative redeemable preferred. (D) Fixed-rate reset cumulative redeemable preferred. On September 14, 2023, Rithm Capital’s board of directors declared third quarter 2023 preferred dividends of $0.47 per share of the Series A, $0.45 per share of the Series B, $0.40 per share of the Series C and $0.44 per share of the 7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock (the “Series D”), or $2.9 million, $5.0 million, $6.3 million and $8.1 million, respectively. Common dividends have been declared as follows: Declaration Date Payment Date Per Share Total Amounts Distributed (millions) Quarterly Dividend June 17, 2022 July 2022 0.25 116.7 September 22, 2022 October 2022 0.25 118.4 December 15, 2022 January 2023 0.25 118.6 March 17, 2023 April 2023 0.25 120.8 June 23, 2023 July 2023 0.25 120.8 September 14, 2023 October 2023 0.25 120.8 Common Stock Purchase Warrants During the second quarter of 2020, the Company issued warrants (the “2020 Warrants”) in conjunction with the issuance of a term loan, which was fully repaid in the third quarter of 2020, that provided the holders the right to acquire, subject to anti-dilution adjustments, up to 43.4 million shares of the Company’s common stock in the aggregate. The 2020 Warrants were exercisable in cash or on a cashless basis and were set to expire on May 19, 2023 and were exercisable, in whole or in part, at any time or from time to time after September 19, 2020 at the following prices (subject to certain anti-dilution adjustments): approximately 24.6 million shares of common stock at $6.11 per share and approximately 18.9 million shares of common stock at $7.94 per share. On February 21, 2023, warrant holders exercised all remaining and outstanding warrants to purchase up to approximately 25.6 million shares of the Company’s common stock. The warrants were exercised on a cashless basis, using the market price of the Company’s common stock on February 17, 2023, which was the last trading day preceding the date of exercise of the warrants, resulting in the issuance of approximately 9.3 million shares of the Company’s common stock on February 23, 2023. The table below summarizes the 2020 Warrants at September 30, 2023: Number of Warrants (in millions) Adjusted Weighted Average Exercise Price Initial Adjusted (A) December 31, 2022 22.4 25.6 $ 6.1 Granted — — — Exercised (22.4) (25.6) 6.1 Expired — — — September 30, 2023 — — (A) Reflects the incremental number of additional common stock issuable upon exercise of warrants in accordance with the warrant agreement. Option Plan As of September 30, 2023, outstanding options were as follows: Held by Former Manager 21,471,990 Issued to the independent directors 2,000 Total 21,473,990 The following table summarizes outstanding options as of September 30, 2023. The last sales price on the New York Stock Exchange for Rithm Capital’s common stock in the quarter ended September 30, 2023 was $9.29 per share. Recipient Date of Grant/ Exercise (A) Number of Unexercised Options Exercisable as of September 30, 2023 Weighted Average Exercise Price (B) Intrinsic Value of Exercisable Options as of September 30, 2023 (millions) Directors Various 2,000 2,000 $ 10.70 $ — Former Manager 2017 1,130,916 1,130,916 12.84 — Former Manager 2018 5,320,000 5,320,000 15.57 — Former Manager 2019 6,351,000 6,351,000 14.95 — Former Manager 2020 1,619,739 1,619,739 16.30 — Former Manager 2021 7,050,335 6,501,162 9.35 — Outstanding 21,473,990 20,924,817 (A) Options expire on the tenth anniversary from date of grant. (B) The exercise prices are subject to adjustment in connection with return of capital dividends. The following table summarizes activity in outstanding options: Number of Options Weighted Average Exercise Price December 31, 2022 21,476,990 $ — Granted — — Exercised — — Expired (3,000) 14.24 September 30, 2023 21,473,990 See table above Stock-Based Compensation On May 25, 2023, Rithm Capital’s stockholders adopted the Rithm Capital Corp. 2023 Omnibus Incentive Plan (the “2023 Plan”), which became effective as of May 25, 2023. The 2023 Plan replaced Rithm Capital’s Nonqualified Stock Option and Incentive Award Plan which became effective on May 15, 2013, and was amended and restated as of November 4, 2014 and as of February 16, 2023, which expired by its terms on April 29, 2023 (the “2013 Plan”). Any stock-based awards issued under the 2013 Plan will continue to be subject to the terms and provisions of the 2013 Plan applicable to such awards. The Company may grant stock-based compensation to its officers and other employees and non-employee directors for the purpose of providing incentives and rewards for service or performance. Stock-based awards issued under the Plan include time-based and performance-based restricted stock unit awards (“RSU” and “PSU” awards, respectively), and restricted stock awards (“RSA”), and may include other forms of equity-based compensation. RSU and PSU awards are an agreement to issue an equivalent number of shares of the Company’s common stock, plus any equivalent shares for dividends declared on the Company’s common stock, at the time the award vests. RSAs and RSU awards vest over a specified service period. PSU awards vest over a specified service period subject to achieving long-term performance criteria. Shares underlying RSU and PSU awards are issued when the awards vest. Statutory tax withholding obligations may be covered via (i) election of a cash payment, (ii) net settlement of the applicable shares of stock underlying the RSUs or PSUs, (iii) a broker assisted sale process or (iv) any such other method approved by Rithm Capital. If applicable, the fair value of shares withheld for tax withholdings is recorded as a reduction to additional paid-in capital. During the nine months ended September 30, 2023, the Company granted RSU awards to employees with a grant date fair value of $12.5 million, inclusive of dividend equivalents, which vest ratably over a three-year period. The Company also granted PSU awards to employees which vest at the end of a three-year period provided that specified performance criteria are met. The fair value of the PSU awards granted during the nine months ended September 30, 2023 as of the grant date was $23.1 million, assuming the maximum levels of performance are achieved. The table below summarizes the Company’s awards granted, forfeited or vested under the 2013 Plan and the 2023 Plan during the nine months ended September 30, 2023: Number of Shares Grant Date Price RSAs RSUs PSUs Total RSAs RSUs PSUs Unvested Shares at December 31, 2022 578,034 — — 578,034 $ 8.65 $ — $ — Granted — 1,215,329 2,430,658 3,645,987 — 9.52 9.52 Accrued RSU and PSU dividend equivalents (A) — 98,384 196,768 295,152 — 9.52 9.52 Vested (192,678) — — (192,678) 8.65 — — Forfeited — (23,003) (46,006) (69,009) — 9.52 9.52 Unvested Shares at September 30, 2023 (A) 385,356 1,290,710 2,581,420 4,257,486 (A) Number of PSUs assumes maximum levels of performance are achieved for outstanding unvested PSU awards. The Company measures and recognizes compensation expense for all stock-based payment awards made to employees and non-employee directors based on their fair value. The fair value of granted awards is determined based on the closing price of the Company’s common stock on the date of grant of the awards. Stock-based compensation is recorded within Compensation and benefits in the Consolidated Statements of Operations and corresponding recording within Additional paid-in-capital in the Consolidated Balance Sheets and Consolidated Statements of Changes in Stockholders’ Equity. For RSUs, compensation expense is recognized using the accelerated attribution model. For PSU awards, the Company estimates the probability that the performance criteria will be achieved and recognizes compensation expense only for those awards expected to vest using the accelerated attribution model. The Company reevaluates its estimate each reporting period and recognizes a cumulative effect adjustment to expense if estimates change from the prior period. For RSAs, compensation expense is recognized using the accelerated attribution model. The Company does not estimate forfeiture rates but rather adjusts for forfeitures in the periods in which they occur. For RSUs and PSUs, the Company provides dividend equivalents for any dividends that are paid out during the period in between grant date and the date the shares are delivered upon vesting. For the nine months ended September 30, 2023, total stock-based compensation expenses recorded was $8.9 million. For the nine months ended September 30, 2023 for the RSU and PSU awards, there were no performance adjustments for actual performance achieved relative to the maximum and no vested shares. The fair value of the RSU and PSU awards forfeited during the nine months ended September 30, 2023 was $0.6 million. For the nine months ended September 30, 2023 for the RSAs, the fair value of vested shares after consideration of net settlement of the vested shares for tax withholding purposes was $0.7 million, and there were no forfeited shares. At September 30, 2023, aggregate unrecognized compensation cost for all unvested equity awards was $31.1 million (assuming maximum levels of performance are achieved), which is expected to be recognized over a weighted-average period of 1.2 years. Earnings Per Share Rithm Capital is required to present both basic and diluted earnings per share (“EPS”). Basic EPS is calculated by dividing net income by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing net income by the weighted average number of shares of common stock outstanding plus the additional dilutive effect, if any, of common stock equivalents during each period. The following table summarizes the basic and diluted earnings per share calculations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Net income $ 221,191 $ 154,190 $ 697,825 $ 877,452 Noncontrolling interests in income of consolidated subsidiaries 4,848 7,307 10,437 27,098 Dividends on preferred stock 22,394 22,427 67,184 67,315 Net income attributable to common stockholders $ 193,949 $ 124,456 $ 620,204 $ 783,039 Basic weighted average shares of common stock outstanding 483,214,061 467,974,962 481,503,762 467,192,721 Dilutive effect of stock options, restricted stock, common stock purchase warrants, RSUs and PSUs (A)(B) 1,136,227 8,821,795 2,026,465 14,707,408 Diluted weighted average shares of common stock outstanding 484,350,288 476,796,757 483,530,227 481,900,129 Basic earnings per share attributable to common stockholders $ 0.40 $ 0.27 $ 1.29 $ 1.68 Diluted earnings per share attributable to common stockholders $ 0.40 $ 0.26 $ 1.28 $ 1.62 (A) Stock options and common stock purchase warrants that could potentially dilute basic earnings per share in the future were not included in the computation of diluted earnings per share for the periods where they were out-of-the-money or a loss has been recorded because they would have been anti-dilutive for the period presented. There were no anti-dilutive common stock purchase warrants for all periods presented. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation — Rithm Capital is or may become, from time to time, involved in various disputes, litigation and regulatory inquiry and investigation matters that arise in the ordinary course of business. Given the inherent unpredictability of these types of proceedings, it is possible that future adverse outcomes could have a material adverse effect on its business, financial position or results of operations. Rithm Capital is not aware of any unasserted claims that it believes are material and probable of assertion where the risk of loss is expected to be reasonably possible. Rithm Capital is, from time to time, subject to inquiries by government entities. Rithm Capital currently does not believe any of these inquiries would result in a material adverse effect on Rithm Capital’s business. Indemnifications — In the normal course of business, Rithm Capital and its subsidiaries enter into contracts that contain a variety of representations and warranties and that provide general indemnifications. Rithm Capital’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against Rithm Capital that have not yet occurred. However, based on its experience, Rithm Capital expects the risk of material loss to be remote. Capital Commitments — As of September 30, 2023, Rithm Capital had outstanding capital commitments related to investments in the following investment types (also refer to Note 5 for MSR investment commitments and to Note 25 for additional capital commitments entered into subsequent to September 30, 2023, if any): • MSRs and Servicer Advance Investments — Rithm Capital and, in some cases, third-party co-investors agreed to purchase future servicer advances related to certain Non-Agency residential mortgage loans. In addition, Rithm Capital’s subsidiaries, NRM and the Mortgage Company, are generally obligated to fund future servicer advances related to the loans they are obligated to service. The actual amount of future advances purchased will be based on (i) the credit and prepayment performance of the underlying loans, (ii) the amount of advances recoverable prior to liquidation of the related collateral and (iii) the percentage of the loans with respect to which no additional advance obligations are made. The actual amount of future advances is subject to significant uncertainty. Notes 5 and 6 for discussion on Rithm Capital’s MSRs and servicer advance investments, respectively. • Mortgage Origination Reserves — The Mortgage Company currently originates, or has in the past originated, conventional, government-insured and nonconforming residential mortgage loans for sale and securitization. The GSEs or Ginnie Mae guarantee conventional and government insured mortgage securitizations and mortgage investors issue nonconforming private label mortgage securitizations while the Mortgage Company generally retains the right to service the underlying residential mortgage loans. In connection with the transfer of loans to the GSEs or mortgage investors, the Mortgage Company makes representations and warranties regarding certain attributes of the loans and, subsequent to the sale, if it is determined that a sold loan is in breach of these representations and warranties, the Mortgage Company generally has an obligation to cure the breach. If the Mortgage Company is unable to cure the breach, the purchaser may require the Mortgage Company, as applicable, to repurchase the loan. In addition, as issuers of Ginnie Mae guaranteed securitizations, the Mortgage Company holds the right to repurchase loans that are at least 90 days’ delinquent from the securitizations at their discretion. Loans in forbearance that are three or more consecutive payments delinquent are included as delinquent loans permitted to be repurchased. While the Mortgage Company is not obligated to repurchase the delinquent loans, the Mortgage Company generally exercises its respective option to repurchase loans that will result in an economic benefit. As of September 30, 2023, Rithm Capital’s estimated liability associated with representations and warranties and Ginnie Mae repurchases was $56.9 million and $1.4 billion, respectively. See Note 5 for information on regarding the right to repurchase delinquent loans from Ginnie Mae securities and mortgage origination. • Residential Mortgage Loans — As part of its investment in residential mortgage loans, Rithm Capital may be required to outlay capital. These capital outflows primarily consist of advance escrow and tax payments, residential maintenance and property disposition fees. The actual amount of these outflows is subject to significant uncertainty. See Note 8 for information regarding Rithm Capital’s residential mortgage loans. • Consumer Loans — The Consumer Loan Companies have invested in loans with an aggregate of $185.7 million of unfunded and available revolving credit privileges as of September 30, 2023. However, under the terms of these loans, requests for draws may be denied and unfunded availability may be terminated at Rithm Capital’s discretion. • Single-Family Rental Properties — Crowne Property Acquisitions, LLC, a wholly owned subsidiary of Rithm Capital, executed a purchase and sales agreement with Lennar Homes of Texas Land and Construction, LTD., a subsidiary of Lennar Corporation, to purchase 371 SFR properties, which shall be delivered in phased takedowns, at an estimated aggregate purchase price of $95.6 million, which is payable subject to the phased takedown schedule. The purchased homes are currently under construction, and all of the homes are expected to be delivered by the end of the first quarter of 2024. As of September 30, 2023 108 SFR properties have been delivered to Rithm Capital. • Mortgage Loans Receivable — Genesis and Rithm Capital had commitments to fund up to $616.6 million and $5.1 million, respectively, of additional advances on existing mortgage loans as of September 30, 2023. These commitments are generally subject to loan agreements with covenants regarding the financial performance of the customer and other terms regarding advances that must be met before Genesis funds the commitment. • Equity Investments — As part of its investment commitment in certain commercial real estate projects, Rithm Capital is required to fund its pro rata share of future capital contributions subject to certain limitations. Non-Recourse Carve-Out, Construction Completion, Environmental and Carry Guarantees – In connection with investments in two commercial real estate projects, Rithm Capital provided certain limited guarantees to the senior lender on the projects related to non-recourse carve outs, completion, environmental, and carry costs of the projects. The actual amount that could be called under the guarantees is subject to significant uncertainty. Environmental Costs — As an investor in and owner of commercial and residential real estate, Rithm Capital is subject to potential environmental costs. At September 30, 2023, Rithm Capital is not aware of any environmental concerns that would have a material adverse effect on its consolidated financial position or results of operations. Debt Covenants — Certain of the Company’s debt obligations are subject to loan covenants and event of default provisions, including event of default provisions triggered by certain specified declines in Rithm Capital’s equity or a failure to maintain a specified tangible net worth, liquidity or indebtedness to tangible net worth ratio. Refer to Note 18. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company follows ASC 850, Related Party Disclosure , for the identification of related parties and disclosure of related party transactions. A party is considered to be related to us if the party, directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with us. Related parties also include principal owners, management and directors, as well as members of their immediate families or any other parties with which we may deal if one party to a transaction controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. In July 2023, Rithm entered into an agreement that holds a limited partnership interest in a commercial real estate development project. Rithm’s limited partnership interest is accounted for under the equity method and is recorded within Other Assets. In addition, Genesis entered into a loan agreement in the amount of $86.4 million with the entity, which matures in 36 months unless otherwise extended. This loan is included in Mortgage Loans Receivable, at fair value on Rithm Capital’s Consolidated Balance Sheets. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense (benefit) consists of the following: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Current: Federal $ 5,014 $ — $ 5,030 $ — State and local 185 3 306 48 Total current income tax expense (benefit) 5,199 3 5,336 48 Deferred: Federal 41,759 18,654 75,822 250,221 State and local 5,627 3,427 11,151 47,294 Total deferred income tax expense 47,386 22,081 86,973 297,515 Total income tax expense (benefit) $ 52,585 $ 22,084 $ 92,309 $ 297,563 Rithm Capital intends to qualify as a REIT for each of its tax years through December 31, 2023. A REIT is generally not subject to U.S. federal corporate income tax on that portion of its income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. Rithm Capital operates various business segments, including servicing, origination and MSR related investments, through taxable REIT subsidiaries (“TRSs”) that are subject to regular corporate income taxes, which have been provided for in the provision for income taxes, as applicable. Refer to Note 3 for further details. As of September 30, 2023, Rithm Capital recorded a net deferred tax liability of $798.2 million, primarily composed of deferred tax liabilities generated through the deferral of gains from residential mortgage loans sold by the origination business and changes in fair value of MSRs, loans and swaps held within taxable entities. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS These financial statements include a discussion of material events that have occurred subsequent to September 30, 2023 through the issuance of these Consolidated Financial Statements. Events subsequent to that date have not been considered in these financial statements. On October 2, 2023, Rithm Capital entered into a definitive agreement with Computershare Limited to acquire Computershare Mortgage Services Inc. (“Computershare”) and certain affiliated companies, including SLS, for a purchase price of approximately $720 million. On October 12, 2023, Rithm Capital and certain of its affiliates entered into Amendment No. 1 to the Merger Agreement (the “First Amendment”) with Sculptor and certain of its affiliates. Pursuant to the First Amendment, among other things, the transaction value was updated to approximately $676 million, which included $12.00 per Class A common share of Sculptor, and increased the termination fee payable by Sculptor to Rithm in certain circumstances pursuant to the Merger Agreement (the “Company Termination Fee”) from approximately $16.6 million to approximately $20.3 million. Also, on October 12, 2023, Rithm Capital purchased from Delaware Life Insurance Company (“DLIC”) warrants to purchase an aggregate of 4,338,015 shares of Sculptor’s Class A Common Stock (the “Warrant Shares”) at an exercise price of $7.95 per share, for an aggregate purchase price of $27.6 million. Rithm Capital also agreed to pay certain additional amounts to DLIC in the event that Sculptor is acquired within 270 days of the closing of the purchase of the warrants. On October 12, 2023, Rithm Capital delivered to Sculptor an exercise notice pursuant to the terms of the warrants for the Warrant Shares, representing 12.8% of Sculptor’s outstanding Class A Common Stock, and on October 13, 2023 Sculptor issued the Warrant Shares. As a result of the ownership of the Warrant Shares, Rithm Capital controls approximately 6.5% of the total voting power of Sculptor’s outstanding voting stock. Beginning on August 12, 2023, a consortium of bidders (the “Consortium”) sent several unsolicited, non-binding proposals to acquire Sculptor. Subsequently, on October 13, 2023, Sculptor received an updated unsolicited, non-binding proposal from the Consortium to acquire Sculptor for $13.50 per Class A common share of Sculptor in cash, provided that, among other things, Sculptor terminate the Merger Agreement in accordance with its terms. In such event, Sculptor would be obligated to pay Rithm Capital the Company Termination Fee. While Rithm Capital was not party to the filed complaint, on September 11, 2023, stockholder Gilles Beachemin filed a purported class action against Sculptor and each of Sculptor’s directors in the Court of Chancery of the State of Delaware, captioned Gilles Beachemin v. Marcy Engel, et al., No. 2023-0921- (Del. Ch. September 11, 2023) (the “Beachemin Action”). The Beachemin Action alleges, among other things, that Sculptor’s board of directors (the “Sculptor Board”) and the special committee of the Sculptor Board (the “Special Committee”) violated their fiduciary duties by refusing to waive certain restrictions in the Consortium’s standstill. On October 17, 2023, Sculptor stockholders Daniel S. Och, Harold A. Kelly, Jr., Richard Lyon, James O’Connor and Zoltan Varga (collectively, the “Specified Stockholders”) filed a purported class action complaint on behalf of themselves and all other similarly situated stockholders of Sculptor against each of Sculptor’s directors, Sculptor and certain of its subsidiaries and Rithm Capital and certain of its subsidiaries in the Court of Chancery of the State of Delaware, captioned Och, et al. v. Engel, et al., C.A. No. 2023-1043-SG (the “Former EMD Group Action”). The complaint in the Former EMD Group Action alleges, among other things, that the Sculptor Board and the Special Committee violated their fiduciary duties. The Former EMD Group Action complaint seeks, among other things, to enjoin the transaction with Rithm Capital and a court order (i) reducing the Company Termination Fee, (ii) prohibiting Rithm Capital from voting the Warrant Shares and (iii) declaring that the Majority of Unaffiliated Vote Condition, as defined in the Merger Agreement, be reinserted into the Merger Agreement. Sculptor, the Sculptor Board, the Special Committee and Rithm Capital deny any alleged wrongdoing, and intend to oppose any request for a preliminary injunction. The Former EMD Group Action and the Beachemin Action have been consolidated into In re Sculptor Capital Management, Inc. Stockholder Litigation, C.A. No. 2023-0921-SG (Del. Ch.) (the “Sculptor Stockholder Action”) in connection with a preliminary injunction hearing scheduled on November 9, 2023. On October 26, 2023, Rithm Capital and certain of its affiliates entered into Amendment No. 2 to the Merger Agreement (the “Second Amendment”) with Sculptor and certain of its affiliates. Pursuant to the Second Amendment, among other things, the transaction value was updated to approximately $719.8 million, which includes $12.70 per Class A common share of Sculptor and the Company Termination Fee was increased to approximately $22.4 million. In connection with entering into the Second Amendment, on October 26, 2023, Rithm Capital entered into a Transaction Support Agreement (the “Transaction Support Agreement”) with each of the Specified Stockholders and the other signatories party thereto. Under the terms of the Transaction Support Agreement, each Specified Stockholder agreed, among other things, to vote all shares held by such Specified Stockholder in favor of the adoption of the Merger Agreement and the approval of the Sculptor Acquisition. The Specified Stockholders also agreed not to transfer or otherwise dispose of any common stock of Sculptor or other securities of Sculptor or its subsidiaries, other than certain permitted transfers, during the term of the Transaction Support Agreement. Furthermore, in accordance with the Transaction Support Agreement, counsel for the Specified Stockholders signed a stipulated order dismissing with prejudice the claims raised by the Specified Stockholders in the Sculptor Stockholder Action, solely with respect to the Specified Stockholders, which was submitted to the Court of Chancery for approval, and the Specified Stockholders have agreed to withdraw any demands under Section 220 of the General Corporation Law of the State of Delaware and to not commence any proceeding or pursue any claims relating to the Sculptor Acquisition prior to the closing of the Sculptor Acquisition. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Income Taxes | Rithm Capital has elected and intends to qualify to be taxed as a REIT for U.S. federal income tax purposes. As such, Rithm Capital will generally not be subject to U.S. federal corporate income tax on that portion of its net income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. See Note 24, Income Taxes, for additional information regarding Rithm Capital’s taxable REIT subsidiaries. |
Segment Reporting | As of September 30, 2023, Rithm Capital conducted its business through the following segments: (i) Origination, (ii) Servicing, (iii) MSR Related Investments, (iv) Residential Securities, Properties and Loans, (v) Consumer Loans, (vi) Mortgage Loans Receivable and (vii) Corporate. |
Interim Financial Statements | Interim Financial Statements — The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP” or “U.S. GAAP”). In the opinion of management, all adjustments considered necessary for a fair presentation of Rithm Capital’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The Consolidated Financial Statements include the accounts of Rithm Capital and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. Rithm Capital consolidates those entities in which it has control over significant operating, financing and investing decisions of the entity, as well as those entities deemed to be VIEs in which Rithm Capital is determined to be the primary beneficiary. For entities over which Rithm Capital exercises significant influence, but which do not meet the requirements for consolidation, Rithm Capital uses the equity method of accounting whereby it records its share of the underlying income of such entities. Distributions from equity method investees are classified in the Consolidated Statements of Cash Flows based on the cumulative earnings approach, where all distributions up to cumulative earnings are classified as distributions of earnings. |
Reclassifications | Reclassifications — Certain prior period amounts in Rithm Capital’s Consolidated Financial Statements and respective notes have been reclassified to be consistent with the current period presentation. Such reclassifications had no impact on net income, total assets, total liabilities or stockholders’ equity. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets — The Company reviews long-lived assets for impairment when events or changes in circumstances indicate the carrying value of these assets may exceed their current fair values. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment charges were recognized on long-lived assets for the three months and nine months ended September 30, 2023. In the future, if events or market conditions affect the estimated fair value to the extent that a long-lived asset is impaired, the Company will adjust the carrying value of these long-lived assets in the period in which the impairment occurs. |
Risks and Uncertainties | Risks and Uncertainties — In the normal course of business, Rithm Capital encounters primarily two significant types of economic risk: credit risk and market risk. Credit risk is the risk of default on Rithm Capital’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of investments due to changes in prepayment rates, interest rates, spreads or other market factors, including risks that impact the value of the collateral underlying Rithm Capital’s investments. Taking into consideration these risks along with estimated prepayments, financings, collateral values, payment histories and other information, Rithm Capital believes that the carrying values of its investments are reasonable. Furthermore, for each of the periods presented, a significant portion of Rithm Capital’s assets are dependent on its servicers’ and subservicers’ ability to perform their obligations servicing the residential mortgage loans underlying Rithm Capital’s Excess MSRs, MSRs, MSR financing receivables, servicer advance investments, Non-Agency RMBS and loans. If a servicer is terminated, Rithm Capital’s right to receive its portion of the cash flows related to interests in servicing related assets may also be terminated. The mortgage and financial sectors operate in a challenging and uncertain economic environment. Financial and real estate companies continue to be affected by, among other things, market volatility, rapidly rising interest rates and inflationary pressures. Should macroeconomic conditions continue to worsen, there is no assurance that such conditions will not result in an overall decline in the fair value of many assets, including those in which the Company invests, and potential impairment of the carrying value of goodwill or other intangible assets. The ultimate duration and impact of the current economic environment remain uncertain. Rithm Capital is subject to significant tax risks. If Rithm Capital were to fail to qualify as a REIT in any taxable year, Rithm Capital would be subject to U.S. federal corporate income tax (including any applicable alternative minimum tax), which could be material. Unless entitled to relief under certain statutory provisions, Rithm Capital would also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification is lost. |
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements — In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The standard was issued to ease the accounting effects of reform to the London Interbank Offered Rate (“LIBOR”) and other reference rates. The standard provides optional expedients and exceptions for applying GAAP to debt, derivatives and other contracts affected by reference rate reform. The standard was effective for all entities as of March 12, 2020 through December 31, 2022 and was able to be elected over time as reference rate reform activities occur. Additionally, in December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 . The standard defers the expiration date of ASC 848 from December 31, 2022 to December 31, 2024. ASU 2022-06 became effective upon issuance. As of June 30, 2023, the Company has transitioned from LIBOR to an alternative benchmark. The Company's financing arrangements have provisions in place that provide for an alternative to LIBOR. In addition, the Company has amended terms of certain financing arrangements, where necessary, to transition or direct the transition to an alternative benchmark. The Company does not currently intend to amend the 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series A”), the 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series B”), or the 6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series C”) to change the existing USD-LIBOR cessation fallback language. In March 2022, the FASB issued ASU 2022-01, Derivative and Hedging (Topic 815): Fair Value Hedging–Portfolio Layer Method . The standard clarifies the accounting and promotes consistency in reporting for hedges where the portfolio layer method is applied. The new standard is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company’s adoption of the new standard did not have a material effect on its Consolidated Financial Statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The standard clarifies that a contractual restriction on the sale of an equity security is not considered in measuring the security’s fair value. The standard also requires certain disclosures for equity securities that are subject to contractual restrictions. The new standard is effective for fiscal years beginning after December 15, |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Summary of Segment Financial Data | The following tables summarize segment financial information, which in total reconciles to the same data for Rithm Capital as a whole: Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing Real Estate Securities Properties and Residential Mortgage Loans Consumer Loans Mortgage Loans Receivable Corporate Total Three Months Ended September 30, 2023 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ — $ 372,979 $ 69,665 $ 442,644 $ — $ — $ — $ — $ — $ 442,644 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(138,993)) — 95,507 (74,573) 20,934 — — — — — 20,934 Servicing revenue, net — 468,486 (4,908) 463,578 — — — — — 463,578 Interest income 29,140 127,467 35,339 191,946 140,119 23,993 58,946 59,461 2,142 476,607 Gain on originated residential mortgage loans, held-for-sale, net 126,844 17,295 — 144,139 — 5,091 — — — 149,230 Total revenues 155,984 613,248 30,431 799,663 140,119 29,084 58,946 59,461 2,142 1,089,415 Interest expense 30,725 83,845 33,907 148,477 136,180 30,753 26,285 31,751 9,108 382,554 G&A and other 137,831 103,728 66,275 307,834 1,009 13,531 4,542 15,524 34,184 376,624 Total operating expenses 168,556 187,573 100,182 456,311 137,189 44,284 30,827 47,275 43,292 759,178 Realized and unrealized gains (losses) on investments, net 22 — 10,453 10,475 (127,458) (7,865) (4,111) 1,451 — (127,508) Other income (loss), net 74 (700) 37,412 36,786 (2,644) 40,330 (2,410) 5,369 (6,384) 71,047 Total other income (loss) 96 (700) 47,865 47,261 (130,102) 32,465 (6,521) 6,820 (6,384) (56,461) Income (loss) before income taxes (12,476) 424,975 (21,886) 390,613 (127,172) 17,265 21,598 19,006 (47,534) 273,776 Income tax expense (benefit) (3,125) 59,474 1,946 58,295 — (4,656) 62 (1,116) — 52,585 Net income (loss) (9,351) 365,501 (23,832) 332,318 (127,172) 21,921 21,536 20,122 (47,534) 221,191 Noncontrolling interests in income (loss) of consolidated subsidiaries 269 — 1,414 1,683 — — 3,165 — — 4,848 Dividends on preferred stock — — — — — — — — 22,394 22,394 Net income (loss) attributable to common stockholders $ (9,620) $ 365,501 $ (25,246) $ 330,635 $ (127,172) $ 21,921 $ 18,371 $ 20,122 $ (69,928) $ 193,949 Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing Real Estate Securities Properties and Residential Mortgage Loans Consumer Loans Mortgage Loans Receivable Corporate Total Nine Months Ended September 30, 2023 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ — $ 1,082,257 $ 295,788 $ 1,378,045 $ — $ — $ — $ — $ — $ 1,378,045 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(384,094)) — 103,748 (203,086) (99,338) — — — — — (99,338) Servicing revenue, net — 1,186,005 92,702 1,278,707 — — — — — 1,278,707 Interest income 81,225 314,387 95,520 491,132 376,842 73,050 97,634 176,607 6,742 1,222,007 Gain on originated residential mortgage loans, held-for-sale, net 373,796 22,882 — 396,678 1,247 12,395 — — — 410,320 Total revenues 455,021 1,523,274 188,222 2,166,517 378,089 85,445 97,634 176,607 6,742 2,911,034 Interest expense 89,333 246,525 95,977 431,835 350,044 87,775 32,280 91,725 27,121 1,020,780 G&A and other 421,407 298,636 210,811 930,854 3,199 36,303 9,042 46,550 77,825 1,103,773 Total operating expenses 510,740 545,161 306,788 1,362,689 353,243 124,078 41,322 138,275 104,946 2,124,553 Realized and unrealized gains (losses) on investments, net 78 195 8,366 8,639 (96,015) (22,228) (14,095) 9,967 — (113,732) Other income (loss), net (261) (18,971) 107,761 88,529 (4,514) 82,509 (5,736) 6,260 (49,663) 117,385 Total other income (loss) (183) (18,776) 116,127 97,168 (100,529) 60,281 (19,831) 16,227 (49,663) 3,653 Income (loss) before income taxes (55,902) 959,337 (2,439) 900,996 (75,683) 21,648 36,481 54,559 (147,867) 790,134 Income tax expense (benefit) (14,003) 115,887 (2,117) 99,767 — (3,436) 169 (4,191) — 92,309 Net income (loss) (41,899) 843,450 (322) 801,229 (75,683) 25,084 36,312 58,750 (147,867) 697,825 Noncontrolling interests in income (loss) of consolidated subsidiaries 613 — 2,113 2,726 — — 7,711 — — 10,437 Dividends on preferred stock — — — — — — — — 67,184 67,184 Net income (loss) attributable to common stockholders $ (42,512) $ 843,450 $ (2,435) $ 798,503 $ (75,683) $ 25,084 $ 28,601 $ 58,750 $ (215,051) $ 620,204 Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing Real Estate Securities Properties and Residential Mortgage Loans Consumer Loans Mortgage Loans Receivable Corporate Total September 30, 2023 Investments $ 1,545,881 $ 7,823,376 $ 1,114,249 $ 10,483,506 $ 10,193,596 $ 2,393,549 $ 1,436,080 $ 2,135,424 $ — $ 26,642,155 Cash and cash equivalents 211,544 417,092 233,556 862,192 328,794 2,315 533 19,411 4,038 1,217,283 Restricted cash 25,967 139,829 119,150 284,946 3,543 14,501 19,703 45,754 — 368,447 Other assets 135,339 2,714,592 2,323,689 5,173,620 830,971 115,413 94,540 99,095 118,805 6,432,444 Goodwill 11,836 12,540 5,092 29,468 — — — 55,731 — 85,199 Total assets $ 1,930,567 $ 11,107,429 $ 3,795,736 $ 16,833,732 $ 11,356,904 $ 2,525,778 $ 1,550,856 $ 2,355,415 $ 122,843 $ 34,745,528 Debt $ 1,467,620 $ 4,498,335 $ 2,443,876 $ 8,409,831 $ 10,227,701 $ 1,943,551 $ 1,269,768 $ 1,719,384 $ 546,374 $ 24,116,609 Other liabilities 171,398 2,374,139 33,624 2,579,161 148,823 403,021 9,092 25,532 195,327 3,360,956 Total liabilities 1,639,018 6,872,474 2,477,500 10,988,992 10,376,524 2,346,572 1,278,860 1,744,916 741,701 27,477,565 Total equity 291,549 4,234,955 1,318,236 5,844,740 980,380 179,206 271,996 610,499 (618,858) 7,267,963 Noncontrolling interests in equity of consolidated subsidiaries 9,073 — 12,600 21,673 — — 38,234 — — 59,907 Total Rithm Capital stockholders’ equity $ 282,476 $ 4,234,955 $ 1,305,636 $ 5,823,067 $ 980,380 $ 179,206 $ 233,762 $ 610,499 $ (618,858) $ 7,208,056 Investments in equity method investees $ — $ — $ 65,212 $ 65,212 $ — $ — $ — $ — $ 34,140 $ 99,352 Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing Real Estate Securities Properties and Residential Mortgage Loans Consumer Loans Mortgage Loans Receivable Corporate Total Three Months Ended September 30, 2022 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ — $ 338,742 $ 114,421 $ 453,163 $ — $ — $ — $ — $ — $ 453,163 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(141,616)) — 39,853 (59,027) (19,174) — — — — — (19,174) Servicing revenue, net — 378,595 55,394 433,989 — — — — — 433,989 Interest income 41,862 55,844 15,401 113,107 76,908 19,186 16,456 42,335 5,387 273,379 Gain on originated residential mortgage loans, held-for-sale, net 214,703 5,980 — 220,683 — (17,204) — — — 203,479 Total revenues 256,565 440,419 70,795 767,779 76,908 1,982 16,456 42,335 5,387 910,847 Interest expense 31,345 56,650 26,033 114,028 51,822 21,242 1,925 18,888 10,184 218,089 G&A and other 283,798 112,731 62,817 459,346 921 12,220 1,991 15,241 15,889 505,608 Total operating expenses 315,143 169,381 88,850 573,374 52,743 33,462 3,916 34,129 26,073 723,697 Realized and unrealized gains (losses) on investments, net — (1) (8,717) (8,718) (130,456) 81,829 (5,845) 29,072 — (34,118) Other income (loss), net 1,368 (4,074) 4,923 2,217 (2,799) 11,448 8,701 5,710 (2,035) 23,242 Total other income (loss) 1,368 (4,075) (3,794) (6,501) (133,255) 93,277 2,856 34,782 (2,035) (10,876) Income (loss) before income taxes (57,210) 266,963 (21,849) 187,904 (109,090) 61,797 15,396 42,988 (22,721) 176,274 Income tax expense (benefit) (14,243) 51,032 (7,197) 29,592 — (5,564) (4) (1,940) — 22,084 Net income (loss) (42,967) 215,931 (14,652) 158,312 (109,090) 67,361 15,400 44,928 (22,721) 154,190 Noncontrolling interests in income (loss) of consolidated subsidiaries 471 — (139) 332 — — 6,975 — — 7,307 Dividends on preferred stock — — — — — — — — 22,427 22,427 Net income (loss) attributable to common stockholders $ (43,438) $ 215,931 $ (14,513) $ 157,980 $ (109,090) $ 67,361 $ 8,425 $ 44,928 $ (45,148) $ 124,456 Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing (A) Real Estate Securities Properties and Residential Mortgage Loans Consumer Loans Mortgage Loans Receivable Corporate Total Nine Months Ended September 30, 2022 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ — $ 1,010,252 $ 368,789 $ 1,379,041 $ — $ — $ — $ — $ — $ 1,379,041 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(522,206)) — 881,183 9,098 890,281 — — — — — 890,281 Servicing revenue, net — 1,891,435 377,887 2,269,322 — — — — — 2,269,322 Interest income 143,449 83,954 42,443 269,846 187,841 68,815 53,498 113,360 17,080 710,440 Gain on originated residential mortgage loans, held-for-sale, net 924,582 83,481 — 1,010,568 — (30,302) — — — 980,266 Total revenues 1,068,031 2,058,870 420,330 3,549,736 187,841 38,513 53,498 113,360 17,080 3,960,028 Interest expense 88,358 131,452 78,186 297,996 81,067 53,442 6,275 38,537 30,434 507,751 G&A and other 1,041,988 321,360 210,774 1,574,122 2,403 47,545 6,405 46,249 478,844 2,155,568 Total operating expenses 1,130,346 452,812 288,960 1,872,118 83,470 100,987 12,680 84,786 509,278 2,663,319 Realized and unrealized gains (losses) on investments, net — (1,812) (12,062) (13,874) (331,019) 100,594 (26,774) 14,417 — (256,656) Other income (loss), net 5,295 2,061 45,099 52,455 (7,526) 55,235 33,198 13,140 (11,540) 134,962 Total other income (loss) 5,295 249 33,037 38,581 (338,545) 155,829 6,424 27,557 (11,540) (121,694) Income (loss) before income taxes (57,020) 1,606,307 164,407 1,716,199 (234,174) 93,355 47,242 56,131 (503,738) 1,175,015 Income tax expense (benefit) (14,086) 363,187 33,766 382,867 — (4,387) 34 (5,563) (75,388) 297,563 Net income (loss) (42,934) 1,243,120 130,641 1,333,332 (234,174) 97,742 47,208 61,694 (428,350) 877,452 Noncontrolling interests in income (loss) of consolidated subsidiaries 2,165 — 130 2,295 — — 24,803 — — 27,098 Dividends on preferred stock — — — — — — — — 67,315 67,315 Net income (loss) attributable to common stockholders $ (45,099) $ 1,243,120 $ 130,511 $ 1,331,037 $ (234,174) $ 97,742 $ 22,405 $ 61,694 $ (495,665) $ 783,039 (A) Includes elimination of intercompany transactions of $2.5 million primarily related to loan sales. Servicing Segment Revenues The table below summarizes the components of servicing segment revenues: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Base servicing MSR-owned assets $ 316,042 $ 284,611 $ 919,913 $ 835,368 Residential whole loans 2,217 2,593 6,553 9,001 Third party 22,316 22,717 67,694 69,439 340,575 309,921 994,160 913,808 Other fees Ancillary and other fees (A) 32,404 28,821 88,097 96,444 Change in fair value due to: Realization of cash flows (115,941) (90,750) (290,990) (341,706) Change in valuation inputs and assumptions and other 211,448 130,603 394,738 1,222,889 Total servicing fees $ 468,486 $ 378,595 $ 1,186,005 $ 1,891,435 Servicing data – unpaid principal balance (“UPB”) (period end) (in millions) UPB – MSR-owned assets $ 455,237 $ 401,826 $ 455,237 $ 401,826 UPB – Residential whole loans 8,480 9,930 8,480 9,930 UPB – Third party 99,372 91,820 99,372 91,820 |
EXCESS MORTGAGE SERVICING RIG_2
EXCESS MORTGAGE SERVICING RIGHTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Summary of Activity Related to the Carrying Value of Investments in Excess MSRs | The table below summarizes the components of Excess MSRs: September 30, 2023 December 31, 2022 Direct investments in Excess MSRs $ 217,764 $ 249,366 Excess MSR joint ventures 65,212 72,437 Excess mortgage servicing rights, at fair value $ 282,976 $ 321,803 The following table presents activity related to the carrying value of direct investments in Excess MSRs: Total (A) Balance as of December 31, 2022 $ 249,366 Interest income 16,733 Other income 150 Proceeds from repayments (33,901) Proceeds from sales (669) Change in fair value (13,915) Balance as of September 30, 2023 $ 217,764 (A) Underlying loans serviced by Mr. Cooper Group Inc. (“Mr. Cooper”) and SLS. The following table summarizes activity related to MSRs and MSR financing receivables: Balance as of December 31, 2022 $ 8,889,403 Purchases, net (A) — Originations (B) 609,460 Proceeds from sales (C) (704,657) Change in fair value due to: Realization of cash flows (D) (384,094) Change in valuation inputs and assumptions 284,756 Balance at September 30, 2023 $ 8,694,868 (A) Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection. (B) Represents MSRs retained on the sale of originated residential mortgage loans. (C) Relates primarily to excess servicing cash flows sold on certain agency loans with a total UPB of approximately $91.4 billion during the nine months ended September 30, 2023. In connection with these sales, the Company recorded a gain of approximately $5.2 million during the period, which is included within change in fair value of MSRs and MSR financing receivables in the Consolidated Statements of Operations. (D) Based on the paydown of the underlying residential mortgage loans. The following table summarizes MSRs and MSR financing receivables by type as of September 30, 2023: UPB of Underlying Mortgages Weighted Average Life (Years) (A) Carrying Value (B) Agency $ 354,510,758 8.1 $ 5,393,329 Non-Agency 50,056,162 6.9 704,873 Ginnie Mae (C) 126,354,300 7.7 2,596,666 Total/Weighted Average $ 530,921,220 7.9 $ 8,694,868 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Carrying value represents fair value. As of September 30, 2023, weighted average discount rates of 8.5% (range of 7.9% – 10.8%) were used to value Rithm Capital’s MSRs and MSR financing receivables. (C) As of September 30, 2023, Rithm Capital holds approximately $1.4 billion in residential mortgage loans subject to repurchase and the related residential mortgage loans repurchase liability on its Consolidated Balance Sheets. |
Summary of Direct Investments in Excess MSRs | The following table summarizes direct investments in Excess MSRs: September 30, 2023 December 31, 2022 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis Carrying Value (B) Carrying Value (B) Rithm Capital (C, D) Former Manager-managed funds Mr. Cooper $ 44,294,807 32.5% – 100.0% (56.4%) 0.0% – 50% 0.0% – 35.0% 6.5 $ 189,814 $ 217,764 $ 249,366 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Carrying value represents the fair value of the pools and recapture agreements, as applicable. (C) Amounts in parentheses represent weighted averages. (D) Rithm Capital is also invested in related servicer advance investments, including the basic fee component of the related MSR as of September 30, 2023 (Note 6) on $15.7 billion UPB underlying these Excess MSRs. Changes in fair value of investments consists of the following: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Original and Recaptured Pools $ (3,498) $ (3,857) $ (13,915) $ (5,421) |
Summary of the Financial Results of Excess MSR Joint Ventures, Accounted for as Equity Method Investees | The following tables summarize the financial results of the Excess MSR joint ventures, accounted for as equity method investees: September 30, 2023 December 31, 2022 Excess MSR $ 120,292 $ 135,356 Other assets 10,818 10,204 Other liabilities (687) (687) Equity $ 130,423 $ 144,873 Rithm Capital’s investment $ 65,212 $ 72,437 Rithm Capital’s percentage ownership 50.0 % 50.0 % Three Months Ended Nine Months Ended 2023 2022 2023 2022 Interest income $ 5,397 $ 4,437 $ 11,079 $ 10,514 Other income (loss) (2,391) (12,074) (6,949) (14,417) Expenses (8) (8) (24) (24) Net income (loss) $ 2,998 $ (7,645) $ 4,106 $ (3,927) The following table summarizes the activity of investments in equity method investees: Balance at December 31, 2022 $ 72,437 Distributions of earnings from equity method investees — Distributions of capital from equity method investees (9,278) Change in fair value of investments in equity method investees 2,053 Balance at September 30, 2023 $ 65,212 |
Summary of Excess MSR Investments Made through Equity Method Investees | The following is a summary of Excess MSR investments made through equity method investees: September 30, 2023 Unpaid Principal Balance Investee Interest in Excess MSR (A) Rithm Capital Interest in Investees Amortized Cost Basis (B) Carrying Value (C) Weighted Average Life (Years) (D) Agency Original and Recaptured Pools $ 17,693,521 66.7 % 50.0 % $ 98,681 $ 120,292 5.4 (A) The remaining interests are held by Mr. Cooper. (B) Represents the amortized cost basis of the equity method investees in which Rithm Capital holds a 50% interest. (C) Represents the carrying value of the Excess MSRs held in equity method investees, in which Rithm Capital holds a 50% interest. Carrying value represents the fair value of the pools, as applicable. (D) Represents the weighted average expected timing of the receipt of cash flows of each investment. |
MORTGAGE SERVICING RIGHTS AND_2
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Summary of Activity Related to the Carrying Value of Investments in Excess MSRs | The table below summarizes the components of Excess MSRs: September 30, 2023 December 31, 2022 Direct investments in Excess MSRs $ 217,764 $ 249,366 Excess MSR joint ventures 65,212 72,437 Excess mortgage servicing rights, at fair value $ 282,976 $ 321,803 The following table presents activity related to the carrying value of direct investments in Excess MSRs: Total (A) Balance as of December 31, 2022 $ 249,366 Interest income 16,733 Other income 150 Proceeds from repayments (33,901) Proceeds from sales (669) Change in fair value (13,915) Balance as of September 30, 2023 $ 217,764 (A) Underlying loans serviced by Mr. Cooper Group Inc. (“Mr. Cooper”) and SLS. The following table summarizes activity related to MSRs and MSR financing receivables: Balance as of December 31, 2022 $ 8,889,403 Purchases, net (A) — Originations (B) 609,460 Proceeds from sales (C) (704,657) Change in fair value due to: Realization of cash flows (D) (384,094) Change in valuation inputs and assumptions 284,756 Balance at September 30, 2023 $ 8,694,868 (A) Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection. (B) Represents MSRs retained on the sale of originated residential mortgage loans. (C) Relates primarily to excess servicing cash flows sold on certain agency loans with a total UPB of approximately $91.4 billion during the nine months ended September 30, 2023. In connection with these sales, the Company recorded a gain of approximately $5.2 million during the period, which is included within change in fair value of MSRs and MSR financing receivables in the Consolidated Statements of Operations. (D) Based on the paydown of the underlying residential mortgage loans. The following table summarizes MSRs and MSR financing receivables by type as of September 30, 2023: UPB of Underlying Mortgages Weighted Average Life (Years) (A) Carrying Value (B) Agency $ 354,510,758 8.1 $ 5,393,329 Non-Agency 50,056,162 6.9 704,873 Ginnie Mae (C) 126,354,300 7.7 2,596,666 Total/Weighted Average $ 530,921,220 7.9 $ 8,694,868 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Carrying value represents fair value. As of September 30, 2023, weighted average discount rates of 8.5% (range of 7.9% – 10.8%) were used to value Rithm Capital’s MSRs and MSR financing receivables. (C) As of September 30, 2023, Rithm Capital holds approximately $1.4 billion in residential mortgage loans subject to repurchase and the related residential mortgage loans repurchase liability on its Consolidated Balance Sheets. |
Summary of Fees Earned in Exchange for Servicing Financial Assets | The following table summarizes components of servicing revenue, net: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 412,386 $ 419,793 $ 1,284,583 $ 1,276,137 Ancillary and other fees 30,258 33,370 93,462 102,904 Servicing fee revenue, net and fees 442,644 453,163 1,378,045 1,379,041 Change in fair value due to: Realization of cash flows (138,993) (141,616) (384,094) (522,206) Change in valuation inputs and assumptions, net of realized gains (losses) 159,927 143,174 284,756 1,502,844 Change in fair value of derivative instruments — (18,505) — (11,316) Gain (loss) on settlement of derivative instruments — (2,227) — (79,041) Servicing revenue, net $ 463,578 $ 433,989 $ 1,278,707 $ 2,269,322 |
Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans of the Direct Investment in MSRs | The table below summarizes the geographic distribution of the underlying residential mortgage loans of the MSRs and MSR financing receivables: Percentage of Total Outstanding Unpaid Principal Amount State Concentration September 30, 2023 December 31, 2022 California 17.1 % 17.4 % Florida 8.6 % 8.6 % Texas 6.2 % 6.2 % New York 6.0 % 6.0 % Washington 5.8 % 5.9 % New Jersey 4.3 % 4.4 % Virginia 3.6 % 3.6 % Maryland 3.4 % 3.4 % Illinois 3.3 % 3.4 % Georgia 3.0 % 2.9 % Other U.S. 38.7 % 38.2 % 100.0 % 100.0 % |
Summary of Investments in Servicer Advances | The table below summarizes the type of advances included in the servicer advances receivable: September 30, 2023 December 31, 2022 Principal and interest advances $ 579,277 $ 664,495 Escrow advances (taxes and insurance advances) 1,093,779 1,426,409 Foreclosure advances 833,680 754,073 Total (A)(B)(C) $ 2,506,736 $ 2,844,977 (A) Includes $426.5 million and $526.5 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B) Includes $296.1 million and $261.8 million of servicer advances receivable related to Ginnie Mae MSRs, respectively, recoverable from either the borrower or Ginnie Mae. Expected losses for advances associated with Ginnie Mae loans in the MSR portfolio are considered in the MSR fair valuation through a non-reimbursable advance loss assumption. (C) Excludes $72.5 million and $19.5 million, respectively, in unamortized advance discount and reserves, net of accruals for advance recoveries. These reserves relate to inactive loans in the foreclosure or liquidation process. Amortized Cost Basis Carrying Value (A) Weighted Average Discount Rate Weighted Average Yield Weighted Average Life (Years) (B) September 30, 2023 Servicer advance investments $ 361,325 $ 387,669 6.2 % 7.1 % 8.6 December 31, 2022 Servicer advance investments $ 392,749 $ 398,820 5.7 % 5.6 % 8.4 (A) Represents the fair value of the servicer advance investments, including the basic fee component of the related MSRs. (B) Represents the weighted average expected timing of the receipt of expected net cash flows for this investment. The following table provides additional information regarding the servicer advance investments and related financing: UPB of Underlying Residential Mortgage Loans Outstanding Servicer Advances Servicer Advances to UPB of Underlying Residential Mortgage Loans Face Amount of Secured Notes and Bonds Payable Loan-to-Value (“LTV”) (A) Cost of Funds (C) Gross Net (B) Gross Net September 30, 2023 Servicer advance investments (D) $ 15,654,419 $ 314,165 2.0 % $ 275,952 84.1 % 81.9 % 7.5 % 6.9 % December 31, 2022 Servicer advance investments (D) $ 17,033,753 $ 341,628 2.0 % $ 319,276 90.2 % 88.3 % 6.5 % 5.9 % (A) Based on outstanding servicer advances, excluding purchased but unsettled servicer advances. (B) Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve. (C) Annualized measure of the cost associated with borrowings. Gross cost of funds primarily includes interest expense and facility fees. Net cost of funds excludes facility fees. (D) The following table summarizes the types of advances included in servicer advance investments: September 30, 2023 December 31, 2022 Principal and interest advances $ 55,058 $ 66,892 Escrow advances (taxes and insurance advances) 142,995 155,438 Foreclosure advances 116,112 119,298 Total $ 314,165 $ 341,628 |
Summary of Servicer Advances Reserve | The following table summarizes servicer advances reserve: Balance at December 31, 2022 $ 65,428 Provision 58,214 Write-offs (14,851) Balance at September 30, 2023 $ 108,791 |
SERVICER ADVANCE INVESTMENTS (T
SERVICER ADVANCE INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
Summary of Investments in Servicer Advances | The table below summarizes the type of advances included in the servicer advances receivable: September 30, 2023 December 31, 2022 Principal and interest advances $ 579,277 $ 664,495 Escrow advances (taxes and insurance advances) 1,093,779 1,426,409 Foreclosure advances 833,680 754,073 Total (A)(B)(C) $ 2,506,736 $ 2,844,977 (A) Includes $426.5 million and $526.5 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B) Includes $296.1 million and $261.8 million of servicer advances receivable related to Ginnie Mae MSRs, respectively, recoverable from either the borrower or Ginnie Mae. Expected losses for advances associated with Ginnie Mae loans in the MSR portfolio are considered in the MSR fair valuation through a non-reimbursable advance loss assumption. (C) Excludes $72.5 million and $19.5 million, respectively, in unamortized advance discount and reserves, net of accruals for advance recoveries. These reserves relate to inactive loans in the foreclosure or liquidation process. Amortized Cost Basis Carrying Value (A) Weighted Average Discount Rate Weighted Average Yield Weighted Average Life (Years) (B) September 30, 2023 Servicer advance investments $ 361,325 $ 387,669 6.2 % 7.1 % 8.6 December 31, 2022 Servicer advance investments $ 392,749 $ 398,820 5.7 % 5.6 % 8.4 (A) Represents the fair value of the servicer advance investments, including the basic fee component of the related MSRs. (B) Represents the weighted average expected timing of the receipt of expected net cash flows for this investment. The following table provides additional information regarding the servicer advance investments and related financing: UPB of Underlying Residential Mortgage Loans Outstanding Servicer Advances Servicer Advances to UPB of Underlying Residential Mortgage Loans Face Amount of Secured Notes and Bonds Payable Loan-to-Value (“LTV”) (A) Cost of Funds (C) Gross Net (B) Gross Net September 30, 2023 Servicer advance investments (D) $ 15,654,419 $ 314,165 2.0 % $ 275,952 84.1 % 81.9 % 7.5 % 6.9 % December 31, 2022 Servicer advance investments (D) $ 17,033,753 $ 341,628 2.0 % $ 319,276 90.2 % 88.3 % 6.5 % 5.9 % (A) Based on outstanding servicer advances, excluding purchased but unsettled servicer advances. (B) Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve. (C) Annualized measure of the cost associated with borrowings. Gross cost of funds primarily includes interest expense and facility fees. Net cost of funds excludes facility fees. (D) The following table summarizes the types of advances included in servicer advance investments: September 30, 2023 December 31, 2022 Principal and interest advances $ 55,058 $ 66,892 Escrow advances (taxes and insurance advances) 142,995 155,438 Foreclosure advances 116,112 119,298 Total $ 314,165 $ 341,628 |
REAL ESTATE AND OTHER SECURIT_2
REAL ESTATE AND OTHER SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Debt Securities, Available-for-Sale | The following table summarizes real estate and other securities for available for sale (“AFS”) and RMBS measured at fair value securities by designation: September 30, 2023 December 31, 2022 Gross Unrealized Weighted Average Outstanding Face Amount Gains Losses Carrying Value (A) Number of Securities Coupon (B) Yield Life (Years) (C) Carrying RMBS Designated as Available for Sale (AFS): Agency (D) $ 75,928 $ — $ — $ 65,093 1 3.5 % 3.5 % 10.9 $ 73,439 Non-Agency (E)(F) 2,516,651 72,278 (32,923) 366,972 333 3.5 % 3.9 % 5.5 397,076 RMBS Measured at Fair Value through Net Income (FVO): Agency (D) 8,655,669 — (253,951) 8,235,153 44 5.2 % 5.2 % 9.6 7,264,978 Non-Agency (E)(F) 14,611,690 59,989 (97,944) 534,256 354 2.9 % 6.6 % 8.1 553,784 Total/Weighted Average $ 25,859,938 $ 132,267 $ (384,818) $ 9,201,474 732 5.2 % 5.2 % 9.9 $ 8,289,277 (A) Fair value is equal to the carrying value for all securities. See Note 19 regarding the fair value measurements. (B) Excludes residual bonds and certain other Non-Agency bonds, with a carrying value of $17.8 million and $0.8 million, respectively, for which no coupon payment is expected. (C) Based on the timing of expected principal reduction on the assets. (D) The total outstanding face amount was $8.7 billion for fixed rate securities as of September 30, 2023. (E) The total outstanding face amount was $7.9 billion (including $7.0 billion of residual and fair value option notional amount) for fixed rate securities and $9.2 billion (including $9.0 billion of residual and fair value option notional amount) for floating rate securities as of September 30, 2023. (F) Includes other asset-backed securities consisting primarily of (i) interest-only securities, servicing strips and commercial mortgage backed securities (fair value option securities), (ii) bonds backed by consumer loans and (iii) corporate debt which Rithm Capital elected to carry at fair value and record changes to valuation through earnings Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Gains Losses Carrying Value Number of Securities Coupon Yield Life (Years) Corporate debt $ 514 $ 3 $ — $ 512 2 8.2 % 9.5 % 1.5 Consumer loan bonds 301 663 — 663 2 N/A N/A 0.1 Fair value option securities: Interest-only securities 9,247,297 33,197 (31,955) 139,108 145 0.8 % 9.5 % 2.4 Servicing strips 4,087,218 17,726 (3,734) 50,737 61 0.2 % 15.2 % 3.9 Commercial Mortgage Backed Securities 3,931 103 — 3,900 2 7.9 % 8.8 % 1.6 The following table summarizes purchases and sales of Real Estate and Other Securities: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in millions) Treasury Agency Non-Agency Agency Non-Agency Treasury Agency Non-Agency Agency Non-Agency Purchases Face $ — $ 1,211.3 $ — $ 9,053.2 $ 906.7 $ 1,000.0 $ 3,373.7 $ 472.6 $ 10,051.4 $ 4,189.8 Purchase price — 1,196.2 — 9,041.6 69.1 973.8 3,350.6 32.6 10,046.1 217.7 Sales Face $ — $ 230.0 $ — $ 7,767.1 $ 15.3 $ — $ 1,692.4 $ — $ 8,596.9 $ 15.3 Amortized cost — 229.8 — 7,987.1 12.0 — 1,672.6 0.2 8,844.1 13.6 Sale price — 219.6 — 6,965.4 12.0 — 1,615.5 — 7,704.3 12.0 Gain (loss) on sale — (10.2) — (1,021.8) (0.1) — (57.1) (0.2) (1,139.9) (1.6) |
Summary of Debt Securities, Held-to-Maturity | The following table summarizes Real Estate and Other Securities for Held to Maturity securities: September 30, 2023 December 31, 2022 Weighted Average Outstanding Face Amount Amortized Cost / Carrying Value Fair Value Unrecognized Gains/(Losses) Number of Securities Yield Life (Years) Carrying Treasury Bills Designated as Held to Maturity (HTM): Treasury $ 1,000,000 $ 992,122 $ 992,183 $ 61 1 5.4 % 0.2 $ — |
Summary of Real Estate Securities in an Unrealized Loss Position | The following table summarizes certain information for RMBS designated as AFS in an unrealized loss position as of September 30, 2023: Securities in an Unrealized Loss Position Outstanding Face Amount Amortized Cost Basis Gross Unrealized Losses Carrying Value Number of Securities Weighted Average Before Credit Impairment Credit Impairment (A) After Credit Impairment Coupon Yield Life Less than 12 Months $ 79,960 $ 69,392 $ — $ 69,392 $ (6,770) $ 62,622 72 3.1 % 4.0 % 4.7 12 or More Months 306,044 288,367 (14,421) 273,946 (26,153) 247,793 130 3.7 % 3.7 % 7.2 Total/Weighted Average $ 386,004 $ 357,759 $ (14,421) $ 343,338 $ (32,923) $ 310,415 202 3.6 % 3.8 % 6.7 (A) Represents credit impairment on securities in an unrealized loss position as of September 30, 2023. Rithm Capital performed an assessment of all RMBS designated as AFS that are in an unrealized loss position (an unrealized loss position exists when a security’s amortized cost basis, excluding the effect of credit impairment, exceeds its fair value) and determined the following: September 30, 2023 December 31, 2022 Gross Unrealized Losses Gross Unrealized Losses RMBS Designated as AFS Fair Value Amortized Cost Basis After Credit Impairment Credit (A) Non-Credit (B) Fair Value Amortized Cost Basis After Credit Impairment Credit (A) Non-Credit (B) Securities Rithm Capital intends to sell $ — $ — $ — $ — $ — $ — $ — $ — Securities Rithm Capital is more likely than not to be required to sell (C) — — — — — — — — Securities Rithm Capital has no intent to sell and is not more likely than not to be required to sell: Credit impaired securities 69,456 69,833 (14,421) (376) 77,843 78,101 (10,816) (258) Non-credit impaired securities 240,959 273,505 — (32,547) 271,405 304,831 — (33,426) Total debt securities in an unrealized loss position $ 310,415 $ 343,338 $ (14,421) $ (32,923) $ 349,248 $ 382,932 $ (10,816) $ (33,684) (A) Required to be recorded through earnings. In measuring the portion of credit losses, Rithm Capital estimates the expected cash flow for each of the securities. This evaluation included a review of the credit status and the performance of the collateral supporting those securities, including the credit of the issuer, key terms of the securities and the effect of local, industry and broader economic trends. Significant inputs in estimating the cash flows included Rithm Capital’s expectations of prepayment rates, default rates and loss severities. Credit losses were measured as the decline in the present value of the expected future cash flows discounted at the security’s effective interest rate. (B) Represents unrealized losses on securities that are due to non-credit factors. (C) Rithm Capital may, at times, be more likely than not to be required to sell certain securities for liquidity purposes. While the amount of the securities to be sold may be an estimate, and the securities to be sold have not yet been identified, Rithm Capital must make its best estimate, which is subject to significant judgment regarding future events, and may differ materially from actual future sales. |
Summary of Debt Securities, Available-for-Sale, Allowance for Credit Loss | The following table summarizes the activity related to the allowance for credit losses on RMBS designated as AFS (excluding credit impairment relating to securities Rithm Capital intends to sell or is more likely than not required to sell): RMBS Designated as AFS Purchased Credit Deteriorated Non-Purchased Credit Deteriorated Total Allowance for credit losses on available-for-sale debt securities at December 31, 2022 $ 4,140 $ 6,676 $ 10,816 Additions to the allowance for credit losses on securities for which credit losses were not previously recorded — — — Additions to the allowance for credit losses arising from purchases of available-for-sale debt securities accounted for as purchased financial assets with credit deterioration — — — Reductions for securities sold during the period (221) — (221) Reductions in the allowance for credit losses because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis — — — Additional increases (decreases) to the allowance for credit losses on securities that had credit losses, or an allowance recorded in a previous period (158) 3,984 3,826 Write-offs charged against the allowance — — — Recoveries of amounts previously written off — — — Allowance for credit losses on available-for-sale debt securities at September 30, 2023 $ 3,761 $ 10,660 $ 14,421 |
RESIDENTIAL MORTGAGE LOANS (Tab
RESIDENTIAL MORTGAGE LOANS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Summary of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO | The following table summarizes residential mortgage loans outstanding by loan type: September 30, 2023 December 31, 2022 Loan Type Outstanding Face Amount Carrying Loan Weighted Average Yield Weighted Average Life (Years) (A) Carrying Value Total residential mortgage loans, held-for-investment, at fair value $ 462,187 $ 370,957 8,610 8.9 % 4.5 $ 452,519 Acquired performing loans (B) 69,353 57,229 1,947 8.9 % 4.7 72,425 Acquired non-performing loans (C) 27,042 21,454 324 9.3 % 3.2 28,602 Total residential mortgage loans, held-for-sale, at lower of cost or market $ 96,395 $ 78,683 2,271 9.0 % 4.3 $ 101,027 Acquired performing loans (B)(D) $ 997,217 $ 963,554 3,374 6.8 % 13.1 $ 890,131 Acquired non-performing loans (C)(D) 211,662 191,078 1,101 4.6 % 23.8 340,342 Originated loans 1,579,012 1,585,967 5,593 6.9 % 29.2 2,066,798 Total residential mortgage loans, held-for-sale, at fair value $ 2,787,891 $ 2,740,599 10,068 6.7 % 23.0 $ 3,297,271 Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market $ 2,884,286 $ 2,819,282 $ 3,398,298 (A) For loans classified as Level 3 in the fair value hierarchy, the weighted average life is based on the expected timing of the receipt of cash flows. For Level 2 loans, the weighted average life is based on the contractual term of the loan. (B) Performing loans are generally placed on non-accrual status when principal or interest is 90 days or more past due. (C) As of September 30, 2023, Rithm Capital has placed non-performing loans, held-for-sale on non-accrual status, except as described in (D) below. (D) Includes $252.1 million and $186.7 million UPB of Ginnie Mae Early Buyout Options (“EBOs”) performing and non-performing loans, respectively, on accrual status as contractual cash flows are guaranteed by the FHA. The following table summarizes mortgage loans receivable outstanding by loan purpose as of September 30, 2023: Carrying Value (A) % of Portfolio Loan % of Portfolio Weighted Average Yield Weighted Average Original Life (Months) Weighted Average Committed Loan Balance to Value (B) Construction $ 947,754 44.3 % 422 30.0 % 9.8 % 16.1 75.0% / 63.3% Bridge 925,859 43.4 % 682 48.6 % 9.3 % 25.1 69.9% Renovation 261,811 12.3 % 300 21.4 % 9.9 % 14.0 79.4% / 68.2% $ 2,135,424 100.0 % 1,404 100.0 % 9.6 % 19.7 N/A (A) Mortgage loans receivable are carried at fair value. See Note 19 regarding fair value measurements. (B) Weighted by commitment loan-to-value (“LTV”) for bridge loans, loan-to-cost (“LTC”) and loan-to-after-repair-value (“LTARV”) for construction and renovation loans. The following table summarizes the activity for mortgage loans receivable: Balance at December 31, 2022 $ 2,064,028 Purchases 146,631 Initial loan advances 975,677 Construction holdbacks and draws 491,370 Paydowns and payoffs (1,542,459) Purchased loans discount amortization 177 Balance at September 30, 2023 $ 2,135,424 Notes and Loans Receivable — The following table summarizes the activity for notes and loans receivable: Notes Receivable Loans Receivable Total Balance at December 31, 2022 $ — $ 94,401 $ 94,401 Fundings 35,000 — 35,000 Payment in Kind — 4,422 4,422 Proceeds from repayments (1,750) (68,945) (70,695) Fair value adjustments due to: Changes in instrument-specific credit risk — — — Other factors — 231 231 Balance at September 30, 2023 $ 33,250 $ 30,109 $ 63,359 |
Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans | The following table summarizes the geographic distribution of the underlying residential mortgage loans: Percentage of Total Outstanding Unpaid Principal Amount State Concentration September 30, 2023 December 31, 2022 Florida 11.4 % 10.9 % California 9.3 % 10.2 % New York 8.5 % 6.8 % Texas 8.0 % 8.9 % Georgia 4.1 % 4.2 % New Jersey 3.8 % 3.8 % Illinois 3.6 % 3.6 % Indiana 3.2 % 3.2 % Maryland 3.2 % 3.1 % Pennsylvania 2.8 % 2.7 % Other U.S. 42.1 % 42.6 % 100.0 % 100.0 % |
Summary of Performing Loans Past Due | The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate carrying value of loans: September 30, 2023 December 31, 2022 Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB 90+ $ 305,579 $ 266,341 $ (39,237) $ 468,147 $ 423,321 $ (44,826) The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of mortgage loans receivable: September 30, 2023 December 31, 2022 Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB Current $ 2,105,989 $ 2,104,383 $ (1,606) $ 2,064,028 $ 2,064,028 $ — 90+ 31,045 31,041 (4) — — — The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of notes and loans receivable: September 30, 2023 December 31, 2022 Days Past Due UPB Carrying Value (A) Carrying Value Over (Under) UPB UPB Carrying Value (A) Carrying Value Over (Under) UPB Current $ 133,191 $ 63,359 $ (69,832) $ 157,745 $ 94,401 $ (63,344) 90+ — — — — — — (A) Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements. |
Summary of Loans Held For Sale, Fair Value | The following table summarizes the activity for residential mortgage loans: Loans Held-for-Investment, at Fair Value Loans Held-for-Sale, at Lower of Cost or Fair Value Loans Held-for-Sale, at Fair Value Total Balance at December 31, 2022 $ 452,519 $ 101,027 $ 3,297,271 $ 3,850,817 Originations — — 28,097,716 28,097,716 Sales — (6,946) (28,795,595) (28,802,541) Purchases/additional fundings 1,269 — 241,061 242,330 Proceeds from repayments (38,988) (8,289) (146,886) (194,163) Transfer of loans to other assets (A) — — 7,248 7,248 Transfer of loans to real estate owned (6,127) (3,170) (1,464) (10,761) Transfers of loans to held-for-sale (30,556) — — (30,556) Transfer of loans from held-for-investment — — 30,556 30,556 Valuation (provision) reversal on loans — (3,939) — (3,939) Fair value adjustments due to: Changes in instrument-specific credit risk 4,000 — 9,309 13,309 Other factors (11,160) — 1,383 (9,777) Balance at September 30, 2023 $ 370,957 $ 78,683 $ 2,740,599 $ 3,190,239 (A) Represents loans for which foreclosure has been completed and for which Rithm Capital has made, or intends to make, a claim with the governmental agency that has guaranteed the loans that are grouped and presented as part of claims receivable in other assets (Note 13). |
Summary of Net Interest Income | The following table summarizes the net interest income for residential mortgage loans: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Interest income: Loans held-for-investment, at fair value $ 8,009 $ 11,550 $ 26,732 $ 32,298 Loans held-for-sale, at lower of cost or fair value 1,206 1,613 4,594 5,429 Loans held-for-sale, at fair value 43,875 47,885 122,906 174,536 Total interest income $ 53,090 $ 61,048 $ 154,232 $ 212,263 Interest expense: Loans held-for-investment, at fair value 4,823 3,793 14,342 9,955 Loans held-for-sale, at lower of cost or fair value 857 841 2,746 2,513 Loans held-for-sale, at fair value 44,531 47,953 130,034 129,332 Total interest expense $ 50,211 $ 52,587 $ 147,122 $ 141,800 Net interest income $ 2,879 $ 8,461 $ 7,110 $ 70,463 |
Summary of Originated Mortgage Loans | The following table summarizes the components of gain on originated residential mortgage loans, held-for-sale, net: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Gain (loss) on residential mortgage loans originated and sold, net (A) $ (178,658) $ (141,327) $ (332,793) $ (933,582) Gain (loss) on settlement of residential mortgage loan origination derivative instruments (B) 67,377 57,407 65,798 1,109,163 MSRs retained on transfer of residential mortgage loans (C) 266,644 268,613 609,460 1,059,535 Other (D) 5,892 2,763 2,751 32,302 Realized gain on sale of originated residential mortgage loans, net $ 161,255 $ 187,456 $ 345,216 $ 1,267,418 Change in fair value of residential mortgage loans (19,299) (113,210) 40,190 (383,169) Change in fair value of interest rate lock commitments (Note 17) (8,630) (104,440) (2,288) (154,644) Change in fair value of derivative instruments (Note 17) 15,904 233,673 27,202 250,661 Gain on originated residential mortgage loans, held-for-sale, net $ 149,230 $ 203,479 $ 410,320 $ 980,266 (A) Includes residential mortgage loan origination fees of $105.9 million and $156.8 million for the three months ended September 30, 2023 and 2022, respectively. Includes residential mortgage loan origination fees of $268.8 million and $526.1 million for the nine months ended September 30, 2023 and 2022, respectively. (B) Represents settlement of forward securities delivery commitments utilized as an economic hedge for mortgage loans not included within forward loan sale commitments. (C) Represents the initial fair value of the capitalized mortgage servicing rights upon loan sales with servicing retained. (D) Includes fees for services associated with the residential mortgage loan origination process. |
CONSUMER LOANS (Tables)
CONSUMER LOANS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments In Consumer Loans Equity Method Investees [Abstract] | |
Summary of the Investment in Consumer Loan Companies | The following table summarizes characteristics of the consumer loan portfolio, inclusive of the SpringCastle loans and Marcus loans: Unpaid Principal Balance Carrying Value Weighted Average Coupon Weighted Average Expected Life (Years) September 30, 2023 SpringCastle $ 275,053 $ 303,881 18.2 % 3.6 Marcus 1,200,441 1,132,199 11.1 % 1.3 Total consumer loans $ 1,475,494 $ 1,436,080 12.4 % 1.7 December 31, 2022 SpringCastle $ 330,428 $ 363,756 17.8 % 3.4 Marcus — — — % — Total consumer loans $ 330,428 $ 363,756 17.8 % 3.4 |
Summary of Consumer Loans, Held-For-Investment | The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of consumer loans: September 30, 2023 December 31, 2022 Days Past Due UPB Carrying Value (A) Carrying Value Over (Under) UPB UPB Carrying Value (A) Carrying Value Over (Under) UPB SpringCastle Current $ 270,509 $ 298,905 $ 28,396 $ 325,192 $ 358,057 $ 32,865 90+ 4,544 4,976 432 5,236 5,699 463 Total SpringCastle $ 275,053 $ 303,881 $ 28,828 $ 330,428 $ 363,756 $ 33,328 Marcus Current $ 1,193,531 $ 1,125,682 $ (67,849) $ — $ — $ — 90+ 6,910 6,517 (393) — — — Total Marcus $ 1,200,441 $ 1,132,199 $ (68,242) $ — $ — $ — $ 1,475,494 $ 1,436,080 $ (39,414) $ 330,428 $ 363,756 $ 33,328 (A) Consumer loans are carried at fair value. See Note 19 regarding fair value measurements. |
Summary of Carrying Value of Performing Consumer Loans | The following table summarizes activities related to the carrying value of consumer loans: SpringCastle Marcus Total Balance at December 31, 2022 $ 363,756 $ — $ 363,756 Purchases — 1,317,347 1,317,347 Additional fundings (A) 20,675 — 20,675 Proceeds from repayments (75,681) (197,274) (272,955) Accretion of loan discount and premium amortization, net 7,178 14,103 21,281 Fair value adjustment due to: Changes in instrument-specific credit risk 3,945 — 3,945 Other factors (15,992) (1,977) (17,969) Balance at September 30, 2023 $ 303,881 $ 1,132,199 $ 1,436,080 (A) Represents draws on consumer loans with revolving privileges. |
SINGLE-FAMILY RENTAL PROPERTI_2
SINGLE-FAMILY RENTAL PROPERTIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Real Estate [Abstract] | |
Schedule of Single-Family Rental Properties | The following table summarizes the net carrying value of investments in SFR properties: September 30, 2023 December 31, 2022 Land $ 180,782 $ 175,607 Building 723,129 702,427 Capital improvements 134,631 118,999 Total gross investment in SFR properties 1,038,542 997,033 Accumulated depreciation (46,594) (25,720) Investment in SFR properties, net $ 991,948 $ 971,313 |
Schedule of Activity in Single-Family Rental Properties | The following table summarizes the activity related to the net carrying value of investments in SFR properties: SFR Properties Held-for-Investment SFR Properties Held-for-Sale Total Balance at December 31, 2022 $ 971,313 $ — $ 971,313 Acquisitions and capital improvements 48,563 — 48,563 Transfer to held-for-sale (9,747) 9,747 — Dispositions (250) (6,698) (6,948) Accumulated depreciation (20,861) (119) (20,980) Balance at September 30, 2023 $ 989,018 $ 2,930 $ 991,948 The following table summarizes the activity of the SFR portfolio by units: SFR Properties Held-for-Investment SFR Properties Held-for-Sale Total Balance at December 31, 2022 3,731 — 3,731 Acquisition of SFR units 129 — 129 Transfer to held-for-sale (30) 30 — Disposition of SFR units (1) (20) (21) Balance at September 30, 2023 3,829 10 3,839 |
Schedule of Future Minimum Rental Revenues | The following table summarizes our future minimum rental revenues under existing leases on SFR properties: Remainder of 2023 $ 17,917 2024 and thereafter 33,291 Total $ 51,208 |
MORTGAGE LOANS RECEIVABLE (Tabl
MORTGAGE LOANS RECEIVABLE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Summary of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO | The following table summarizes residential mortgage loans outstanding by loan type: September 30, 2023 December 31, 2022 Loan Type Outstanding Face Amount Carrying Loan Weighted Average Yield Weighted Average Life (Years) (A) Carrying Value Total residential mortgage loans, held-for-investment, at fair value $ 462,187 $ 370,957 8,610 8.9 % 4.5 $ 452,519 Acquired performing loans (B) 69,353 57,229 1,947 8.9 % 4.7 72,425 Acquired non-performing loans (C) 27,042 21,454 324 9.3 % 3.2 28,602 Total residential mortgage loans, held-for-sale, at lower of cost or market $ 96,395 $ 78,683 2,271 9.0 % 4.3 $ 101,027 Acquired performing loans (B)(D) $ 997,217 $ 963,554 3,374 6.8 % 13.1 $ 890,131 Acquired non-performing loans (C)(D) 211,662 191,078 1,101 4.6 % 23.8 340,342 Originated loans 1,579,012 1,585,967 5,593 6.9 % 29.2 2,066,798 Total residential mortgage loans, held-for-sale, at fair value $ 2,787,891 $ 2,740,599 10,068 6.7 % 23.0 $ 3,297,271 Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market $ 2,884,286 $ 2,819,282 $ 3,398,298 (A) For loans classified as Level 3 in the fair value hierarchy, the weighted average life is based on the expected timing of the receipt of cash flows. For Level 2 loans, the weighted average life is based on the contractual term of the loan. (B) Performing loans are generally placed on non-accrual status when principal or interest is 90 days or more past due. (C) As of September 30, 2023, Rithm Capital has placed non-performing loans, held-for-sale on non-accrual status, except as described in (D) below. (D) Includes $252.1 million and $186.7 million UPB of Ginnie Mae Early Buyout Options (“EBOs”) performing and non-performing loans, respectively, on accrual status as contractual cash flows are guaranteed by the FHA. The following table summarizes mortgage loans receivable outstanding by loan purpose as of September 30, 2023: Carrying Value (A) % of Portfolio Loan % of Portfolio Weighted Average Yield Weighted Average Original Life (Months) Weighted Average Committed Loan Balance to Value (B) Construction $ 947,754 44.3 % 422 30.0 % 9.8 % 16.1 75.0% / 63.3% Bridge 925,859 43.4 % 682 48.6 % 9.3 % 25.1 69.9% Renovation 261,811 12.3 % 300 21.4 % 9.9 % 14.0 79.4% / 68.2% $ 2,135,424 100.0 % 1,404 100.0 % 9.6 % 19.7 N/A (A) Mortgage loans receivable are carried at fair value. See Note 19 regarding fair value measurements. (B) Weighted by commitment loan-to-value (“LTV”) for bridge loans, loan-to-cost (“LTC”) and loan-to-after-repair-value (“LTARV”) for construction and renovation loans. The following table summarizes the activity for mortgage loans receivable: Balance at December 31, 2022 $ 2,064,028 Purchases 146,631 Initial loan advances 975,677 Construction holdbacks and draws 491,370 Paydowns and payoffs (1,542,459) Purchased loans discount amortization 177 Balance at September 30, 2023 $ 2,135,424 Notes and Loans Receivable — The following table summarizes the activity for notes and loans receivable: Notes Receivable Loans Receivable Total Balance at December 31, 2022 $ — $ 94,401 $ 94,401 Fundings 35,000 — 35,000 Payment in Kind — 4,422 4,422 Proceeds from repayments (1,750) (68,945) (70,695) Fair value adjustments due to: Changes in instrument-specific credit risk — — — Other factors — 231 231 Balance at September 30, 2023 $ 33,250 $ 30,109 $ 63,359 |
Summary of Performing Loans Past Due | The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate carrying value of loans: September 30, 2023 December 31, 2022 Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB 90+ $ 305,579 $ 266,341 $ (39,237) $ 468,147 $ 423,321 $ (44,826) The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of mortgage loans receivable: September 30, 2023 December 31, 2022 Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB Current $ 2,105,989 $ 2,104,383 $ (1,606) $ 2,064,028 $ 2,064,028 $ — 90+ 31,045 31,041 (4) — — — The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of notes and loans receivable: September 30, 2023 December 31, 2022 Days Past Due UPB Carrying Value (A) Carrying Value Over (Under) UPB UPB Carrying Value (A) Carrying Value Over (Under) UPB Current $ 133,191 $ 63,359 $ (69,832) $ 157,745 $ 94,401 $ (63,344) 90+ — — — — — — (A) Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements. |
Summary of Geographic Distribution of Mortgage Loans Receivable | The following table summarizes the geographic distribution of the underlying mortgage loans receivable as of September 30, 2023: State Concentration Percentage of Total California 49.2 % Washington 8.7 % New York 7.0 % Colorado 5.6 % Florida 5.2 % Arizona 4.2 % Virginia 3.8 % North Carolina 2.5 % Illinois 2.4 % Texas 2.3 % Other U.S. 9.1 % 100.0 % |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on Rithm Capital’s Consolidated Balance Sheets to the total of the same such amounts shown in the Consolidated Statements of Cash Flows: September 30, 2023 December 31, 2022 Cash and cash equivalents $ 1,217,283 $ 1,336,508 Restricted cash 368,447 281,126 Total cash, cash equivalents and restricted cash $ 1,585,730 $ 1,617,634 |
Summary of Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on Rithm Capital’s Consolidated Balance Sheets to the total of the same such amounts shown in the Consolidated Statements of Cash Flows: September 30, 2023 December 31, 2022 Cash and cash equivalents $ 1,217,283 $ 1,336,508 Restricted cash 368,447 281,126 Total cash, cash equivalents and restricted cash $ 1,585,730 $ 1,617,634 The following table summarizes restricted cash balances: September 30, 2023 December 31, 2022 MSRs and servicer advances $ 119,150 $ 69,347 Real estate and other securities 3,543 4,604 Consumer loans 19,703 15,930 SFR properties 14,501 4,627 Origination and servicing 165,796 161,249 Mortgage loans receivable 45,754 25,369 Total restricted cash $ 368,447 $ 281,126 |
OTHER ASSETS AND LIABILITIES (T
OTHER ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income Assets And Liabilities [Abstract] | |
Schedule of Other Assets and Liabilities | Other Assets and Accrued Expenses and Other Liabilities consist of the following: Other Assets Accrued Expenses September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Margin receivable, net (A) $ 569,081 $ 20,614 Margin payable $ 31,392 $ 4,852 Excess MSRs, at fair value (Note 4) 282,976 321,803 Interest payable 215,276 87,700 Servicer advance investments, at fair value (Note 6) 387,669 398,820 Accounts payable 177,969 155,492 Servicing fee receivables 125,381 128,438 Derivative liabilities (Note 17) 9,639 18,064 Principal and interest receivable 164,558 106,608 Accrued compensation and benefits 110,834 112,762 Equity investments (B) 67,819 71,388 Operating lease liabilities (Note 16) 101,478 101,225 Other receivables 159,142 146,131 Deferred tax liability 798,179 711,855 REO 17,824 19,379 Other liabilities 337,548 294,717 Goodwill (Note 15) (C) 85,199 85,199 $ 1,782,315 $ 1,486,667 Notes receivable, at fair value (E) 33,250 — Warrants, at fair value 18,854 19,346 Property and equipment 26,840 37,883 Intangible assets (Note 15) 123,245 141,413 Prepaid expenses 35,398 60,817 Operating lease right-of-use assets (Note 16) 77,522 77,329 Derivative assets (Note 17) 63,532 52,229 Loans receivable, at fair value (D) 30,109 94,401 Other assets 151,469 132,809 $ 2,419,868 $ 1,914,607 (A) Represents collateral posted as a result of changes in fair value of Rithm Capital’s (i) real estate securities securing its secured financing agreements and (ii) derivative instruments. (B) Represents equity investments in (i) commercial redevelopment projects and (ii) operating companies providing services throughout the real estate industry, including investments in Covius Holding Inc. (“Covius”), a provider of various technology-enabled services to the mortgage and real estate sectors, preferred stock in Valon Mortgage, Inc. (“Valon”), a residential mortgage servicing and technology company, and preferred stock in Credijusto Ltd. (“Covalto”), a financial services company. (C) Includes goodwill derived from the acquisition of Shellpoint Partners LLC (“Shellpoint”), Guardian Asset Management LLC (“Guardian”) and Genesis. (D) Represents loans made pursuant to a senior credit agreement and a senior subordinated credit agreement to an entity affiliated with funds managed by an affiliate of the Former Manager. The loans are accounted for under the fair value option. (E) Represents notes receivable acquired pursuant to a loan sale agreement, secured by certain commercial properties. The note is accounted for under the fair value option. |
Schedule of Real Estate Owned | The following table presents activity related to the carrying value of investments in REO: Balance at December 31, 2022 $ 19,379 Property received in satisfaction of loan 21,135 Sales (A) (23,822) Valuation (provision) reversal 1,132 Balance at September 30, 2023 $ 17,824 (A) Recognized when control of the property has transferred to the buyer. |
Summary of Accounts, Notes and Loans Receivable | The following table summarizes residential mortgage loans outstanding by loan type: September 30, 2023 December 31, 2022 Loan Type Outstanding Face Amount Carrying Loan Weighted Average Yield Weighted Average Life (Years) (A) Carrying Value Total residential mortgage loans, held-for-investment, at fair value $ 462,187 $ 370,957 8,610 8.9 % 4.5 $ 452,519 Acquired performing loans (B) 69,353 57,229 1,947 8.9 % 4.7 72,425 Acquired non-performing loans (C) 27,042 21,454 324 9.3 % 3.2 28,602 Total residential mortgage loans, held-for-sale, at lower of cost or market $ 96,395 $ 78,683 2,271 9.0 % 4.3 $ 101,027 Acquired performing loans (B)(D) $ 997,217 $ 963,554 3,374 6.8 % 13.1 $ 890,131 Acquired non-performing loans (C)(D) 211,662 191,078 1,101 4.6 % 23.8 340,342 Originated loans 1,579,012 1,585,967 5,593 6.9 % 29.2 2,066,798 Total residential mortgage loans, held-for-sale, at fair value $ 2,787,891 $ 2,740,599 10,068 6.7 % 23.0 $ 3,297,271 Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market $ 2,884,286 $ 2,819,282 $ 3,398,298 (A) For loans classified as Level 3 in the fair value hierarchy, the weighted average life is based on the expected timing of the receipt of cash flows. For Level 2 loans, the weighted average life is based on the contractual term of the loan. (B) Performing loans are generally placed on non-accrual status when principal or interest is 90 days or more past due. (C) As of September 30, 2023, Rithm Capital has placed non-performing loans, held-for-sale on non-accrual status, except as described in (D) below. (D) Includes $252.1 million and $186.7 million UPB of Ginnie Mae Early Buyout Options (“EBOs”) performing and non-performing loans, respectively, on accrual status as contractual cash flows are guaranteed by the FHA. The following table summarizes mortgage loans receivable outstanding by loan purpose as of September 30, 2023: Carrying Value (A) % of Portfolio Loan % of Portfolio Weighted Average Yield Weighted Average Original Life (Months) Weighted Average Committed Loan Balance to Value (B) Construction $ 947,754 44.3 % 422 30.0 % 9.8 % 16.1 75.0% / 63.3% Bridge 925,859 43.4 % 682 48.6 % 9.3 % 25.1 69.9% Renovation 261,811 12.3 % 300 21.4 % 9.9 % 14.0 79.4% / 68.2% $ 2,135,424 100.0 % 1,404 100.0 % 9.6 % 19.7 N/A (A) Mortgage loans receivable are carried at fair value. See Note 19 regarding fair value measurements. (B) Weighted by commitment loan-to-value (“LTV”) for bridge loans, loan-to-cost (“LTC”) and loan-to-after-repair-value (“LTARV”) for construction and renovation loans. The following table summarizes the activity for mortgage loans receivable: Balance at December 31, 2022 $ 2,064,028 Purchases 146,631 Initial loan advances 975,677 Construction holdbacks and draws 491,370 Paydowns and payoffs (1,542,459) Purchased loans discount amortization 177 Balance at September 30, 2023 $ 2,135,424 Notes and Loans Receivable — The following table summarizes the activity for notes and loans receivable: Notes Receivable Loans Receivable Total Balance at December 31, 2022 $ — $ 94,401 $ 94,401 Fundings 35,000 — 35,000 Payment in Kind — 4,422 4,422 Proceeds from repayments (1,750) (68,945) (70,695) Fair value adjustments due to: Changes in instrument-specific credit risk — — — Other factors — 231 231 Balance at September 30, 2023 $ 33,250 $ 30,109 $ 63,359 |
Summary of Performing Loans Past Due | The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate carrying value of loans: September 30, 2023 December 31, 2022 Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB 90+ $ 305,579 $ 266,341 $ (39,237) $ 468,147 $ 423,321 $ (44,826) The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of mortgage loans receivable: September 30, 2023 December 31, 2022 Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB Current $ 2,105,989 $ 2,104,383 $ (1,606) $ 2,064,028 $ 2,064,028 $ — 90+ 31,045 31,041 (4) — — — The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate carrying value of notes and loans receivable: September 30, 2023 December 31, 2022 Days Past Due UPB Carrying Value (A) Carrying Value Over (Under) UPB UPB Carrying Value (A) Carrying Value Over (Under) UPB Current $ 133,191 $ 63,359 $ (69,832) $ 157,745 $ 94,401 $ (63,344) 90+ — — — — — — (A) Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements. |
EXPENSES, REALIZED AND UNREAL_2
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND OTHER (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of General and Administrative Expenses | General and Administrative expenses consist of the following: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Legal and professional $ 35,348 $ 16,310 $ 65,447 $ 65,718 Loan origination 11,929 16,991 33,280 91,907 Occupancy 13,004 29,916 40,981 88,579 Subservicing 31,483 37,899 109,370 126,694 Loan servicing 5,381 3,371 10,878 13,541 Property and maintenance 25,480 24,698 73,450 70,409 Other 67,850 85,439 205,732 229,285 Total general and administrative expenses $ 190,475 $ 214,624 $ 539,138 $ 686,133 |
Schedule of Components of Other Income (Loss) | The following table summarizes the components of other income (loss): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Real estate and other securities $ (315,612) $ (463,607) $ (354,339) $ (1,590,625) Residential mortgage loans and REO (12,437) (35,310) (4,463) (166,927) Derivative instruments 194,593 464,618 259,539 1,503,183 Other (A) 5,948 181 (14,469) (2,287) Realized and unrealized gains (losses) on investments, net $ (127,508) $ (34,118) $ (113,732) $ (256,656) Unrealized gain (loss) on secured notes and bonds payable $ 3,840 $ 15,128 $ 5,889 $ 50,279 Rental revenue 18,297 16,937 54,163 37,339 Property and maintenance revenue 33,953 34,520 100,707 100,860 (Provision) reversal for credit losses on securities (2,798) (2,812) (3,605) (5,697) Valuation and credit loss (provision) reversal on loans and real estate owned (647) (3,932) (2,849) (8,575) Other income (loss) 18,402 (36,599) (36,920) (39,244) Other income (loss), net $ 71,047 $ 23,242 $ 117,385 $ 134,962 Total Other income (loss) $ (56,461) $ (10,876) $ 3,653 $ (121,694) (A) Includes excess MSRs, servicer advance investments, consumer loans and other. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the carrying value of goodwill by reportable segment: Origination Servicing MSR Mortgage Loans Receivable Total Balance at December 31, 2022 $ 11,836 $ 12,540 $ 5,092 $ 55,731 $ 85,199 Goodwill acquired — — — — — Accumulated impairment loss — — — — — Balance at September 30, 2023 $ 11,836 $ 12,540 $ 5,092 $ 55,731 $ 85,199 |
Schedule of Acquired Intangible Assets | The following table summarizes the acquired identifiable intangible assets: Estimated Useful Lives (Years) September 30, 2023 December 31, 2022 Gross Intangible Assets Customer relationships 3 to 9 $ 57,949 $ 57,949 Purchased technology 3 to 7 137,922 120,787 Trademarks / Trade names 1 to 5 10,259 10,259 $ 206,130 $ 188,995 Accumulated Amortization Customer relationships 16,739 12,960 Purchased technology 61,598 30,959 Trademarks / Trade names 4,548 3,663 $ 82,885 $ 47,582 Intangible Assets, Net Customer relationships 41,210 44,989 Purchased technology (A) 76,324 89,828 Trademarks / Trade names (B) 5,711 6,596 $ 123,245 $ 141,413 (A) Includes indefinite-lived intangible assets of $21.4 million and $21.4 million, respectively. (B) Includes indefinite-lived intangible assets of $1.9 million and $1.9 million, respectively. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table summarizes the expected future amortization expense for acquired intangible assets as of September 30, 2023: Year Ending Amortization Expense October 1 through December 31, 2023 $ 7,566 2024 27,675 2025 25,592 2026 17,357 2027 and thereafter 21,814 $ 100,004 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Future Commitments for Non-Cancelable Leases | The table below summarizes the future commitments under the non-cancelable leases: Year Ending Amount October 1 through December 31, 2023 $ 7,325 2024 25,967 2025 21,099 2026 13,715 2027 11,257 2028 and thereafter 37,630 Total remaining undiscounted lease payments 116,993 Less: imputed interest 15,515 Total remaining discounted lease payments $ 101,478 |
Schedule of Other Information Related to Operating Leases | Other information related to operating leases is summarized below: September 30, 2023 December 31, 2022 Weighted-average remaining lease term (years) 6.4 5.7 Weighted-average discount rate 4.5 % 4.0 % |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives | Derivatives are recorded at fair value on the Consolidated Balance Sheets as follows: Balance Sheet Location September 30, 2023 December 31, 2022 Derivative assets Interest rate swaps (A) Other assets $ 350 $ 449 Interest rate lock commitments Other assets 13,751 16,015 TBAs Other assets 49,431 35,765 Options on treasury futures Other assets — — $ 63,532 $ 52,229 Derivative liabilities Interest rate lock commitments Accrued expenses and other liabilities $ 7,253 $ 7,229 TBAs Accrued expenses and other liabilities 2,386 10,835 $ 9,639 $ 18,064 (A) Net of $1.1 billion and $1.2 billion of related variation margin balances as of September 30, 2023 and December 31, 2022, respectively. The following table summarizes notional amounts related to derivatives: September 30, 2023 December 31, 2022 Interest rate swaps (A) $ 22,565,000 $ 23,085,000 Interest rate lock commitments 2,704,543 2,647,747 TBAs, short position (B) 7,104,300 8,473,221 TBAs, long position (B) — 31,500 (A) Includes $20.2 billion notional of receive Secured Overnight Financing Rate (“SOFR”)/pay fixed of 2.5% and $2.4 billion notional of receive fixed of 3.4%/pay SOFR with weighted average maturities of 38 months and 40 months, respectively, as of September 30, 2023. Includes $23.1 billion notional of receive SOFR/pay fixed of 1.9% and $0.0 billion notional of receive fixed of 0.0%/pay SOFR with weighted average maturities of 35 months and 0 months, respectively, as of December 31, 2022. (B) Represents the notional amount of Agency RMBS, classified as derivatives. The following table summarizes gain (loss) on derivatives and the related location on the Consolidated Statements of Operations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Servicing revenue, net (A) TBAs $ — $ (18,505) $ — $ (15,205) Treasury futures — — — (1,746) Options on treasury futures — — — 5,635 $ — $ (18,505) $ — $ (11,316) Gain on originated residential mortgage loans, held-for-sale, net (A) Interest rate lock commitments (8,630) (104,440) (2,288) (154,644) TBAs 15,574 233,673 28,803 250,661 Interest rate swaps 330 — (1,601) — $ 7,274 $ 129,233 $ 24,914 $ 96,017 Realized and unrealized gains (losses) on investments, net (B)(C) Interest rate swaps 191,527 465,269 263,347 1,145,196 TBAs 3,066 (651) (3,808) 357,987 $ 194,593 $ 464,618 $ 259,539 $ 1,503,183 Total gain (loss) $ 201,867 $ 575,346 $ 284,453 $ 1,587,884 (A) Represents unrealized gain (loss). (B) Excludes no loss and $2.2 million loss for the three months ended September 30, 2023 and 2022, respectively, and no loss and $79.0 million loss for the nine months ended September 30, 2023 and 2022, respectively, included within Servicing revenue, net (Note 5). (C) Excludes $67.4 million gain and $57.4 million gain for the three months ended September 30, 2023 and 2022, respectively, and $65.8 million gain and $1.1 billion gain for the nine months ended September 30, 2023 and 2022, respectively, included within Gain on originated residential mortgage loans, held-for-sale, net (Note 8). |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | The following table summarizes Secured Financing Agreements and Secured Notes and Bonds Payable debt obligations: September 30, 2023 December 31, 2022 Collateral Debt Obligations/Collateral (C) Outstanding Face Amount Carrying Value (A) Final Stated Maturity (B) Weighted Average Funding Cost Weighted Average Life (Years) Outstanding Face Amortized Cost Basis Carrying Value Weighted Average Life (Years) Carrying Value (A) Secured Financing Agreements Repurchase Agreements: Warehouse Credit Facilities-Residential Mortgage Loans (F) $ 2,155,544 $ 2,155,092 Oct-23 to Mar-25 7.3 % 0.7 $ 2,565,299 $ 2,586,513 $ 2,482,541 17.8 $ 2,601,327 Warehouse Credit Facilities-Mortgage Loans Receivable (E) 1,212,156 1,212,156 Dec-23 to May-24 8.2 % 0.3 1,473,515 1,471,904 1,471,904 1.1 1,220,662 Agency RMBS or U.S. Treasury Bills (D) 9,653,355 9,653,355 Oct-23 to Feb-24 5.4 % 0.2 9,731,596 9,546,319 9,870,841 8.1 6,821,788 Non-Agency RMBS (E) 574,346 574,346 Oct-23 to Oct-27 7.3 % 0.8 13,600,138 882,800 880,999 6.2 609,282 SFR Properties (E) 10,431 10,431 Dec-24 7.8 % 1.2 N/A 32,899 32,899 N/A 4,677 Total Secured Financing Agreements $ 13,605,832 $ 13,605,380 6.0 % 0.3 $ 11,257,736 Secured Notes and Bonds Payable Excess MSRs (G) 193,432 193,432 Aug-25 8.8 % 1.9 61,988,328 239,154 278,059 6.3 227,596 MSRs (H) 4,200,200 4,191,504 Nov-23 to Mar-28 6.9 % 1.7 523,532,413 6,317,954 8,616,793 7.9 4,791,543 Servicer Advance Investments (I) 275,952 275,142 Mar-24 to Aug-24 7.5 % 0.4 314,165 361,325 387,669 8.6 318,445 Servicer Advances (I) 2,091,447 2,091,185 Nov-23 to Nov-24 7.6 % 0.5 2,555,898 2,434,266 2,434,266 0.7 2,361,259 Residential Mortgage Loans (J) 650,000 650,000 May-24 6.5 % 0.6 654,975 655,576 658,402 29.2 769,988 Consumer Loans (K) 1,303,517 1,269,768 Jun-28 to Sep 37 7.1 % 4.5 1,475,494 1,422,559 1,436,080 1.7 299,498 SFR Properties (L) 833,387 786,596 Mar-26 to Sep-27 4.1 % 3.6 N/A 956,118 956,118 N/A 817,695 Mortgage Loans Receivable (M) 524,062 507,228 Jul 26 to Dec-26 5.7 % 3.1 567,432 567,432 567,432 0.6 512,919 Total Secured Notes and Bonds Payable $ 10,071,997 $ 9,964,855 6.8 % 1.9 $ 10,098,943 Total/ Weighted Average $ 23,677,829 $ 23,570,235 6.4 % 1.0 $ 21,356,679 (A) Net of deferred financing costs. (B) All debt obligations with a stated maturity through the date of issuance were refinanced, extended or repaid. (C) Includes approximately $199.5 million of associated accrued interest payable as of September 30, 2023. (D) Includes $974.0 million face amount of repurchase agreements collateralized by U.S. Treasury Bills. All repurchase agreements have a fixed rate. Collateral carrying value includes margin deposits. (E) All SOFR-based floating interest rates. Collateral carrying value includes margin deposits. (F) Includes $244.3 million which bear interest at an average fixed rate of 5.1% with the remaining having SOFR-based floating interest rates. (G) Includes $193.4 million of corporate loans which bear interest at the sum of one-month SOFR plus a margin of 3.4%. (H) Includes $2.7 billion of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month SOFR, and (ii) a margin ranging from 2.5% to 3.7%; and $1.5 billion of capital market notes with fixed interest rates ranging 3.0% to 5.4%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the MSRs and MSR financing receivables securing these notes. (I) Includes debt bearing interest equal to the sum of (i) a floating rate index equal to one-month SOFR, and (ii) a margin ranging from 1.5% to 3.7%. Collateral includes servicer advance investments, as well as servicer advances receivable related to the MSRs and MSR financing receivables owned by NRM and the Mortgage Company. (J) Represents $650.0 million securitization backed by a revolving warehouse facility to finance newly originated first-lien, fixed- and adjustable-rate residential mortgage loans which bears interest equal to one-month SOFR plus 1.2%. Collateral carrying value includes cash held in the securitization trust required to meet collateral requirements. (K) Includes (i) SpringCastle debt, which is primarily composed of the following classes of asset-backed notes held by third parties: $220.9 million UPB of Class A notes with a coupon of 2.0% and $53.0 million UPB of Class B notes with a coupon of 2.7% and (ii) $1.0 billion of debt collateralized by the Marcus loans bearing interest at the sum of one-month SOFR plus a margin of 3.0%. (L) Includes $833.4 million of fixed rate notes which bear interest ranging from 3.5% to 7.1%. (M) Includes $238.1 million which bear interest at an average fixed rate of 4.7% with the remaining having SOFR-based floating interest rates. The following table summarizes activities related to the carrying value of debt obligations: Excess MSRs MSRs Servicer Advances (A) Real Estate Securities Residential Mortgage Loans and REO Consumer Loans SFR Properties Mortgage Loans Receivable Total Balance at December 31, 2022 $ 227,596 $ 4,791,543 $ 2,679,704 $ 7,431,070 $ 3,371,315 $ 299,498 $ 822,372 $ 1,733,581 $ 21,356,679 Secured Financing Agreements Borrowings — — — 34,530,433 28,858,739 — 10,431 1,756,295 65,155,898 Repayments — — — (31,733,802) (29,306,544) — (4,677) (1,764,800) (62,809,823) Capitalized deferred financing costs, net of amortization — — — — 1,570 — — — 1,570 Secured Notes and Bonds Payable Borrowings — 1,753,504 1,955,228 — — 1,185,612 — — 4,894,344 Repayments (34,164) (2,353,301) (2,271,757) — (116,730) (212,867) (35,690) — (5,024,509) Discount on borrowings, net of amortization — — — — — — — — — Unrealized gain on notes, fair value — — — — (3,258) 3,058 — (5,692) (5,892) Capitalized deferred financing costs, net of amortization — (242) 3,152 — — (5,533) 4,591 — 1,968 Balance at September 30, 2023 $ 193,432 $ 4,191,504 $ 2,366,327 $ 10,227,701 $ 2,805,092 $ 1,269,768 $ 797,027 $ 1,719,384 $ 23,570,235 (A) Rithm Capital net settles daily borrowings and repayments of the secured notes and bonds payable on its servicer advances. |
Schedule of Contractual Maturities of Debt Obligations | Contractual maturities of debt obligations as of September 30, 2023 are as follows: Year Ending Nonrecourse (A) Recourse (B) Total October 1 through December 31, 2023 $ — $ 8,934,533 $ 8,934,533 2024 3,054,577 6,241,670 9,296,247 2025 — 1,814,895 1,814,895 2026 — 1,725,498 1,725,498 2027 734,738 245,000 979,738 2028 and thereafter 1,303,518 173,400 1,476,918 $ 5,092,833 $ 19,134,996 $ 24,227,829 (A) Includes secured notes and bonds payable of $5.1 billion. (B) Includes secured financing agreements and secured notes and bonds payable of $13.6 billion and $5.5 billion, respectively. Secured financing agreements with contractual maturities prior to December 31, 2023 includes $9.7 billion collateralized by Agency RMBS or U.S. Treasury Bills. |
Schedule of Borrowing Capacity | The following table represents borrowing capacity as of September 30, 2023: Debt Obligations / Collateral Borrowing Capacity Balance Outstanding Available Financing (A) Secured Financing Agreements Residential mortgage loans and REO $ 5,604,816 $ 2,186,023 $ 3,418,793 Loan originations 6,827,000 1,192,108 5,634,892 Secured Notes and Bonds Payable Excess MSRs 286,380 193,432 92,948 MSRs 7,068,200 4,200,200 2,868,000 Servicer advances 3,880,000 2,367,399 1,512,601 Residential mortgage loans 296,762 195,411 101,351 $ 23,963,158 $ 10,334,573 $ 13,628,585 |
Schedule of Debt Redemption | The 2025 Senior Notes mature on October 15, 2025 and the Company may redeem some or all of the 2025 Senior Notes at the Company’s option, at any time from time to time, on or after October 15, 2022 at a price equal to the following fixed redemption prices (expressed as a percentage of principal amount of the 2025 Senior Notes to be redeemed): Year Price 2023 101.563% 2024 and thereafter 100.000% |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Fair Values of Financial Assets Recorded at Fair Value on a Recurring Basis | The carrying values and fair values of assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of September 30, 2023 were as follows: Principal Balance or Notional Amount Carrying Value Fair Value Level 1 Level 2 Level 3 Total Assets Excess MSRs (A) $ 61,988,328 $ 282,976 $ — $ — $ 282,976 $ 282,976 MSRs and MSR financing receivables (A) 530,921,220 8,694,868 — — 8,694,868 8,694,868 Servicer advance investments 314,165 387,669 — — 387,669 387,669 Real estate and other securities (B) 26,859,938 10,193,596 992,183 8,300,246 901,228 10,193,657 Residential mortgage loans, held-for-sale 96,395 78,683 — — 78,683 78,683 Residential mortgage loans, held-for-sale, at fair value 2,787,891 2,740,599 — 2,601,246 139,353 2,740,599 Residential mortgage loans, held-for-investment, at fair value 462,187 370,957 — — 370,957 370,957 Residential mortgage loans subject to repurchase 1,443,546 1,443,546 — 1,443,546 — 1,443,546 Consumer loans 1,475,494 1,436,080 — — 1,436,080 1,436,080 Mortgage loans receivable (C) 2,135,424 2,135,424 — 348,062 1,787,362 2,135,424 Notes receivable 103,082 33,250 — — 33,250 33,250 Loans receivable 30,109 30,109 — — 30,109 30,109 Cash, cash equivalents and restricted cash 1,585,730 1,585,730 1,585,730 — — 1,585,730 Other assets (D) N/A 19,626 — — 19,626 19,626 Derivative assets 31,135,387 63,532 — 49,781 13,751 63,532 $ 29,496,645 $ 2,577,913 $ 12,742,881 $ 14,175,912 $ 29,496,706 Liabilities Secured financing agreements $ 13,605,832 $ 13,605,380 $ — $ 13,605,380 $ — $ 13,605,380 Secured notes and bonds payable (E) 10,071,997 9,964,855 — 307,228 10,029,723 10,336,951 Unsecured senior notes, net of issuance costs 546,374 546,374 — — 523,133 523,133 Residential mortgage loan repurchase liability 1,443,546 1,443,546 — 1,443,546 — 1,443,546 Derivative liabilities 1,238,456 9,639 — 2,386 7,253 9,639 $ 25,569,794 $ — $ 15,358,540 $ 10,560,109 $ 25,918,649 (A) The notional amount represents the total unpaid principal balance of the residential mortgage loans underlying the MSRs, MSR financing receivables and Excess MSRs. Rithm Capital does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios. (B) Includes U.S. Treasury Bills classified as Level 1 and held at amortized cost basis of $992.1 million (see Note 7). (C) Includes Rithm Capital’s economic interests in the VIEs consolidated and accounted for under the collateralized financing entity (“CFE”) election. As of September 30, 2023, the fair value of Rithm Capital’s interests in the mortgage loans receivable securitization was $50.6 million. (D) Excludes the indirect equity investment in a commercial redevelopment project accounted for at fair value on a recurring basis based on NAV of Rithm Capital’s investment. The investment had a fair value of $0 as of September 30, 2023. (E) Includes SCFT 2020-A and 2022-RTL1 mortgage-backed securities issued for which the fair value option for financial instruments was elected and resulted in a fair value of $552.9 million as of September 30, 2023. |
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis Using Level 3 Inputs | The following table summarizes assets measured at fair value on a recurring basis using Level 3 inputs: Level 3 Total Excess MSRs (A)(B) MSRs and MSR Financing Receivables (A) Servicer Advance Investments Non-Agency RMBS Derivatives (C) Residential Mortgage Loans Consumer Loans Notes and Loans Receivable Mortgage Loans Receivable Balance at December 31, 2022 $ 321,803 $ 8,889,403 $ 398,820 $ 950,860 $ 8,786 $ 713,896 $ 363,756 $ 94,401 $ 1,714,053 $ 13,455,778 Transfers Transfers from Level 3 — — — — — (41,430) — — (253,885) (295,315) Transfers to Level 3 — — — — — 20,421 — — — 20,421 Gain (loss) included in net income Credit losses on securities (D) — — — 371 — — — — — 371 Servicing revenue, net (E) Included in servicing revenue (E) — (99,338) — — — — — — — (99,338) Change in fair value of: Excess MSRs (D) (11,862) — — — — — — — — (11,862) Change in fair value of excess MSRs, equity method investees (D) — — — — — — — — — — Servicer advance investments — — 20,273 — — — — — — 20,273 Residential mortgage loans — — — — — (9,548) — — — (9,548) Consumer loans — — — — — — (14,024) — — (14,024) Gain (loss) on settlement of investments, net 284 — — — — — — — 284 Other income (loss), net (D) (134) — — (3,028) (2,288) 42,421 — 231 — 37,202 Gains (losses) included in OCI (F) — — — 685 — — — — — 685 Interest income 16,733 — 16,257 21,121 — — 21,281 4,422 — 79,814 Purchases, sales and repayments Purchases, net (G) — — 644,594 32,600 — 38,335 1,317,347 35,000 146,631 2,214,507 Proceeds from sales (900) (704,657) — — — (239,446) 20,675 — — (924,328) Proceeds from repayments (42,948) — (692,275) (101,381) — (69,718) (272,955) (70,695) (1,286,661) (2,536,633) Originations and other — 609,460 — — — 55,379 — — 1,467,224 2,132,063 Balance at September 30, 2023 $ 282,976 $ 8,694,868 $ 387,669 $ 901,228 $ 6,498 $ 510,310 $ 1,436,080 $ 63,359 $ 1,787,362 $ 14,070,350 (A) Includes the recapture agreement for each respective pool, as applicable. (B) Amounts include Rithm Capital’s portion of the Excess MSRs held by the respective joint ventures in which Rithm Capital has a 50% interest. (C) For the purpose of this table, the IRLC asset and liability positions are shown net. (D) Gain (loss) recorded in earnings during the period is attributable to the change in unrealized gain (loss) relating to Level 3 assets still held at the reporting dates and realized gain (loss) recorded during the period. (E) See Note 5 for further details on the components of servicing revenue, net. (F) Gain (loss) included in unrealized gain (loss) on available-for-sale securities, net in the Consolidated Statements of Comprehensive Income. (G) Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection. |
Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis Using Level 3 Inputs | Liabilities measured at fair value on a recurring basis using Level 3 inputs changed as follows: Level 3 Asset-Backed Securities Issued Balance at December 31, 2022 $ 319,486 Gains (losses) included in net income Other income (A) (200) Purchases, sales and repayments Proceeds from sales — Payments (73,591) Balance at September 30, 2023 $ 245,695 (A) Gain (loss) recorded in earnings during the period is attributable to the change in unrealized gain (loss) relating to Level 3 liabilities still held at the reporting dates and realized gain (loss) recorded during the period. |
Summary of Measurement Inputs and Valuation Techniques | The following table summarizes certain information regarding the ranges and weighted averages of inputs used as of September 30, 2023: Significant Inputs (A) Prepayment (B) Delinquency (C) Recapture (D) Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) (E) Collateral Weighted Average Maturity (Years) (F) Excess MSRs Directly Held 2.3% – 11.0% (5.9%) 0.2% – 8.9% (4.4%) 0.0% – 90.7% (55.3%) 7 – 59 (20) 11 – 27 (21) Excess MSRs Held through Investees 6.3% – 9.0% (7.8%) 2.2% – 5.6% (3.5%) 45.1% – 64.3% (59.0%) 16 – 25 (21) 15 – 21 (19) MSRs and MSR Financing Receivables (G) Agency 3.0% – 83.7% (6.4%) 0.1% – 66.7% (2.1%) — (H) 7 – 108 (26) 0 – 40 (23) Non-Agency 0.1% – 84.4% (11.8%) 0.7% – 70.0% (22.2%) — (H) 10 – 188 (46) 0 – 40 (24) Ginnie Mae 5.4% – 81.5% (8.9%) 0.2% – 71.4% (8.6%) — (H) 18 – 116 (43) 0 – 40 (27) Total/Weighted Average — MSRs and MSR Financing Receivables 0.1% – 84.4% (7.6%) 0.1% – 71.4% (5.7%) — (H) 7 – 188 (33) 0 – 40 (24) (A) Weighted by fair value of the portfolio. (B) Projected annualized weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (C) Projected percentage of residential mortgage loans in the pool for which the borrower will miss a mortgage payments. (D) Percentage of voluntarily prepaid loans that are expected to be refinanced by the related servicer or subservicer, as applicable. (E) Weighted average total mortgage servicing amount, in excess of the basic fee as applicable, measured in basis points (“bps”). A weighted average cost of subservicing of $6.91 – $7.18 ($6.96) per loan per month was used to value the agency MSRs. A weighted average cost of subservicing of $7.47 – $9.55 ($9.14) per loan per month was used to value the Non-Agency MSRs, including MSR financing receivables. A weighted average cost of subservicing of $8.36 per loan per month was used to value the Ginnie Mae MSRs. (F) Weighted average maturity of the underlying residential mortgage loans in the pool. (G) For certain pools, recapture rate represents the expected recapture rate with the successor subservicer appointed by NRM. (H) Recapture is not considered a significant input for MSRs and MSR financing receivables. As of September 30, 2023, real estate securities valuation methodology and results are detailed below. Treasury securities are valued using market-based prices published by the U.S. Department of the Treasury and classified as Level 1. Fair Value Asset Type Outstanding Face Amount Amortized Cost Basis Multiple Quotes (A) Single Quote (B) Total Level Agency RMBS $ 8,731,597 $ 8,554,197 $ 8,300,246 $ — $ 8,300,246 2 Non-Agency RMBS (C) 17,128,341 899,828 901,228 — 901,228 3 Total $ 25,859,938 $ 9,454,025 $ 9,201,474 $ — $ 9,201,474 (A) Rithm Capital generally obtained pricing service quotations or broker quotations from two sources, one of which was generally the seller (the party that sold Rithm Capital the security) for Non-Agency RMBS. Rithm Capital evaluates quotes received, determines one as being most representative of fair value and does not use an average of the quotes. Even if Rithm Capital receives two or more quotes on a particular security that come from non-selling brokers or pricing services, it does not use an average because it believes using an actual quote more closely represents a transactable price for the security than an average level. Furthermore, in some cases, for Non-Agency RMBS, there is a wide disparity between the quotes Rithm Capital receives. Rithm Capital believes using an average of the quotes in these cases would not represent the fair value of the asset. Based on Rithm Capital’s own fair value analysis, it selects one of the quotes which is believed to more accurately reflect fair value. Rithm Capital has not adjusted any of the quotes received in the periods presented. These quotations are generally received via email and contain disclaimers which state that they are “indicative” and not “actionable” — meaning that the party giving the quotation is not bound to purchase the security at the quoted price. Rithm Capital’s investments in Agency RMBS are classified within Level 2 of the fair value hierarchy because the market for these securities is very active and market prices are readily observable. The third-party pricing services and brokers engaged by Rithm Capital (collectively, “valuation providers”) use either the income approach or the market approach, or a combination of the two, in arriving at their estimated valuations of RMBS. Valuation providers using the market approach generally look at prices and other relevant information generated by market transactions involving identical or comparable assets. Valuation providers using the income approach create pricing models that generally incorporate such assumptions as discount rates, expected prepayment rates, expected default rates and expected loss severities. Rithm Capital has reviewed the methodologies utilized by its valuation providers and has found them to be consistent with GAAP requirements. In addition to obtaining multiple quotations, when available, and reviewing the valuation methodologies of its valuation providers, Rithm Capital creates its own internal pricing models for Level 3 securities and uses the outputs of these models as part of its process of evaluating the fair value estimates it receives from its valuation providers. These models incorporate the same types of assumptions as the models used by the valuation providers, but the assumptions are developed independently. These assumptions are regularly refined and updated at least quarterly by Rithm Capital and reviewed by its valuation group, which is separate from its investment acquisition and management group, to reflect market developments and actual performance. For 62.2% of Non-Agency RMBS, the ranges and weighted averages of assumptions used by Rithm Capital’s valuation providers are summarized in the table below. The assumptions used by Rithm Capital’s valuation providers with respect to the remainder of Non-Agency RMBS were not readily available. Fair Value Discount Rate Prepayment Rate (a) CDR (b) Loss Severity (c) Non-Agency RMBS $ 560,081 5.7% – 15.0% (9.3%) 0.0% – 40.7% (7.1%) 0.0% – 2.4% (0.4%) 0.0% – 75.9% (13.0%) (a) Represents the annualized rate of the prepayments as a percentage of the total principal balance of the pool. (b) Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance of the pool. (c) Represents the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding balance. (B) Rithm Capital was unable to obtain quotations from more than one source on these securities. (C) Includes Rithm Capital’s investments in interest-only notes for which the fair value option for financial instruments was elected. The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing residential mortgage loans held-for-sale, at fair value classified as Level 3: Performing Loans Fair Value Discount Rate Prepayment Rate CDR Loss Severity Acquired loans $ 43,697 8.7% – 9.2% (9.0%) 1.9% – 7.7% (5.4%) 2.3% – 10.0% (5.4%) 12.1% – 61.0% (21.3%) Originated loans (A) 65,822 6.0% 1.0% - 42.1% (5.3%) 0.1% - 41.4% (3.0%) 0.1% - 63.3% (12.5%) Residential mortgage loans held-for-sale, at fair value $ 109,519 Non-Performing Loans Fair Value Discount Rate Annual change in home prices Liquidation Timeline Current Value of Underlying Properties Acquired loans $ 19,807 8.6% – 9.1% (8.9%) 6.1%– 12.7% (8.1%) 2.0 – 6.4 (2.9) 227.1% – 782.5% (279.9%) Originated loans (A) 10,027 6.0% N/A 0.5 - 9.2 (1.9) N/A Residential mortgage loans held-for-sale, at fair value $ 29,834 (A) Includes inputs for 47.9% and 76.9% of originated performing and non-performing loans, respectively, classified as Level 3. The remainder of performing and non-performing loans were priced using dealer price quotes and historical sale transactions for similar loans with a range of 49.2% - 100.0% (87.9%). The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing residential mortgage loans held-for-investment, at fair value classified as Level 3: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Residential mortgage loans held-for-investment, at fair value $ 370,957 8.7% – 9.2% (8.9%) 3.6% – 5.0% (4.4%) 6.9% – 17.0% (9.3%) 21.1% – 61.0% (41.2%) The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing consumer loans held-for-investment, at fair value, classified as Level 3: Fair Value Discount Rate Prepayment Rate CDR Loss Severity SpringCastle $ 303,881 8.4% – 9.4% (8.6%) 9.1% – 36.6% (17.7%) 1.7% – 7.5% (4.7%) 60.0% – 60.0% (60.0%) Marcus 1,132,199 11.1% 20.5% 5.3% 7.0% Consumer loans, held-for-investment, at fair value $ 1,436,080 The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing IRLCs: Fair Value Loan Funding Probability Fair Value of Initial Servicing Rights (Bps) IRLCs, net $ 6,498 0.3% – 100.0% (82.6%) 0.7 – 345.0 (222.4) The following table summarizes certain information regards the ranges and weighted averages of inputs used in valuing Asset-Backed Securities Issued: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Asset-backed securities issued $ 245,695 6.4% 17.7% 4.7% 93.5% |
Summary of Certain Information Regarding the Inputs Used in Valuing the Servicer Advances | The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing the servicer advance investments, including the basic fee component of the related MSRs: Significant Inputs Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans Prepayment Rate (A) Delinquency Mortgage Servicing Amount (B) Discount Rate Collateral Weighted Average Maturity (Years) (C) September 30, 2023 1.1% – 2.2% (2.2%) 2.6% – 4.4% (4.4%) 3.3% – 20.5% (20.1%) 18.2 – 19.9 (19.8) bps 6.2% – 6.7% (6.2%) 21.2 – 21.9 (21.9) (A) Projected annual weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (B) Mortgage servicing amount is net of 2.7 bps which represents the amount Rithm Capital paid its servicers as a monthly servicing fee. (C) Weighted average maturity of the underlying residential mortgage loans in the pool. |
Schedule of Inputs Used in Valuing Residential Mortgage Loans | The following table summarizes the inputs used in valuing these residential mortgage loans as of September 30, 2023: Fair Value and Carrying Value Discount Rate Weighted Average Life (Years) (A) Prepayment Rate CDR (B) Loss Severity (C) Performing loans $ 57,229 5.3% – 9.2% (8.9%) 4.6 – 5.6 (4.7) 1.9% – 5.0% (4.7%) 6.9% – 13.8% (7.5%) 21.1% – 61.0% (22.2%) Non-performing loans 21,454 8.6% – 10.0% (9.3%) 2.0 – 6.4 (3.2) 1.9% – 4.5% (2.9%) 11.8% – 37.7% (25.0%) 34.8% – 65.1% (41.5%) Total/weighted average $ 78,683 9.0% 4.3 4.2% 12.3% 27.5% (A) The weighted average life is based on the expected timing of the receipt of cash flows. (B) Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The table below presents the carrying value and classification of the assets and liabilities of consolidated VIEs on the Consolidated Balance Sheets: Advance Purchaser Newrez Joint Ventures Residential Mortgage Loans Consumer Loan SPVs Mortgage Loans Receivable Total September 30, 2023 Assets Servicer advance investments, at fair value $ 378,664 $ — $ — $ — $ — $ 378,664 Residential mortgage loans, held-for-sale, at fair value — — 1,094,978 — — 1,094,978 Consumer loans — — — 303,881 — 303,881 Mortgage loans receivable — — — — 348,061 348,061 Cash and cash equivalents 5,241 21,177 4,410 — — 30,828 Restricted cash 8,151 — 9,378 6,375 12,859 36,763 Other assets 9 410 — 4,528 — 4,947 Total Assets $ 392,065 $ 21,587 $ 1,108,766 $ 314,784 $ 360,920 2,198,122 Liabilities Secured notes and bonds payable (A) 271,488 — 995,361 245,695 307,228 1,819,772 Accrued expenses and other liabilities 2,612 3,257 74 1,422 3,100 10,465 Total Liabilities $ 274,100 $ 3,257 $ 995,435 $ 247,117 $ 310,328 $ 1,830,237 December 31, 2022 Assets Servicer advance investments, at fair value $ 387,675 $ — $ — $ — $ — $ 387,675 Residential mortgage loans, held-for-investment, at fair value — — 22,699 — — 22,699 Residential mortgage loans, held-for-sale, at fair value — — 844,000 — — 844,000 Mortgage loans receivable — — — — 349,975 349,975 Consumer loans — — — 363,756 — 363,756 Cash and cash equivalents 34,084 28,404 23,473 — — 85,961 Restricted cash 7,433 — 7,547 6,652 9,368 31,000 Other assets 9 1,026 165,975 5,253 (238) 172,025 Total Assets $ 429,201 $ 29,430 $ 1,063,694 $ 375,661 $ 359,105 $ 2,257,091 Liabilities Secured financing agreements (A) — — 51,325 — — 51,325 Secured notes and bonds payable (A) 313,093 — 768,959 299,498 312,918 1,694,468 Accrued expenses and other liabilities 1,928 4,306 25,381 1,144 349 33,108 Total Liabilities $ 315,021 $ 4,306 $ 845,665 $ 300,642 $ 313,267 $ 1,778,901 (A) The creditors of the VIEs do not have recourse to the general credit of Rithm Capital, and the assets of the VIEs are not directly available to satisfy Rithm Capital’s obligations. The following table summarizes the carrying value of the Company’s unconsolidated bonds retained pursuant to required risk retention regulations which reflects the Company’s maximum exposure to loss, as well as the UPB of transferred loans. These bonds are grouped and presented as part of real estate and other securities on the Consolidated Balance Sheets: As of and for the Nine Months Ended September 30, 2023 2022 Residential mortgage loan UPB and other collateral $ 10,809,466 $ 12,137,481 Weighted average delinquency (A) 4.2 % 4.9 % Net credit losses $ 167,519 $ 170,439 Face amount of debt held by third parties (B) $ 9,840,864 $ 11,228,461 Carrying value of bonds retained by Rithm Capital (C)(D) $ 867,134 $ 920,904 Cash flows received by Rithm Capital on these bonds $ 113,527 $ 173,765 (A) Represents the percentage of the UPB that is 60+ days delinquent. (B) Excludes bonds retained by Rithm Capital. (C) Includes bonds retained pursuant to required risk retention regulations. (D) Classified within Level 3 of the fair value hierarchy as the valuation is based on certain unobservable inputs including discount rate, prepayment rates and loss severity. See Note 19 for details on unobservable inputs. The following table summarizes the carrying value of the Company’s unconsolidated commercial real estate projects which reflects the Company’s maximum exposure to loss. See Note 22 regarding certain guarantees provided in connection with the investments. These investments are grouped and presented as part of Equity investments within Other assets on the Consolidated Balance Sheets: September 30, 2023 December 31, 2022 Carrying value of commercial real estate held within unconsolidated VIEs $ 48,438 $ — Carrying value of Rithm’s investments in unconsolidated commercial real estate VIEs $ 19,933 $ — |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | Others’ interests in the equity of consolidated subsidiaries is computed as follows: September 30, 2023 December 31, 2022 Advance Purchaser (A) Newrez Joint Ventures Consumer Loan Companies Advance Purchaser (A) Newrez Joint Ventures Consumer Loan Companies Total consolidated equity $ 117,966 $ 18,330 $ 82,007 $ 114,180 $ 25,124 $ 91,263 Others’ ownership interest 10.7 % 49.5 % 46.5 % 10.7 % 49.5 % 46.5 % Others’ interest in equity of consolidated subsidiary $ 12,600 $ 9,073 $ 38,234 $ 12,193 $ 12,437 $ 42,437 Others’ interests in the net income (loss) is computed as follows: Three Months Ended September 30, 2023 2022 Advance Purchaser (A) Newrez Joint Ventures Consumer Loan Companies Advance Purchaser (A) Newrez Joint Ventures Consumer Loan Companies Net income (loss) $ 13,229 $ 544 $ 6,806 $ (1,296) $ 952 $ 15,000 Others’ ownership interest 10.7 % 49.5 % 46.5 % 10.7 % 49.5 % 46.5 % Others’ interest in net income (loss) of consolidated subsidiary $ 1,414 $ 269 $ 3,165 $ (139) $ 471 $ 6,975 Nine Months Ended September 30, 2023 2022 Advance Purchaser (A) Newrez Joint Ventures Consumer Loan Companies Advance Purchaser (A) Newrez Joint Ventures Consumer Loan Companies Net income (loss) $ 19,786 $ 1,238 $ 16,582 $ 1,219 $ 4,374 $ 53,340 Others’ ownership interest 10.7 % 49.5 % 46.5 % 10.7 % 49.5 % 46.5 % Others’ interest in net income (loss) of consolidated subsidiary $ 2,113 $ 613 $ 7,711 $ 130 $ 2,165 $ 24,803 (A) Rithm Capital owned 89.3% of Advance Purchaser as of September 30, 2023 and 2022. |
EQUITY AND EARNINGS PER SHARE (
EQUITY AND EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Preferred Shares | The table below summarizes preferred shares: Dividends Declared per Share Number of Shares Three Months Ended Nine Months Ended Series September 30, 2023 December 31, 2022 Liquidation Preference (A) Issuance Discount Carrying Value (B) 2023 2022 2023 2022 Series A, 7.50% issued July 2019 (C) 6,200 6,200 $ 155,002 3.15 % $ 149,822 $ 0.47 $ 0.47 $ 1.41 $ 1.41 Series B, 7.125% issued August 2019 (C) 11,261 11,261 281,518 3.15 % 272,654 0.45 0.45 1.34 1.34 Series C, 6.375% issued February 2020 (C) 15,903 15,903 397,584 3.15 % 385,289 0.40 0.40 1.20 1.20 Series D, 7.00% issued September 2021 (D) 18,600 18,600 465,000 3.15 % 449,489 0.44 0.44 1.31 1.31 Total 51,964 51,964 $ 1,299,104 $ 1,257,254 $ 1.76 $ 1.76 $ 5.26 $ 5.26 (A) Each series has a liquidation preference or par value of $25.00 per share. (B) Carrying value reflects par value less discount and issuance costs. (C) Fixed-to-floating rate cumulative redeemable preferred. (D) Fixed-rate reset cumulative redeemable preferred. |
Schedule of Dividends Declared | Common dividends have been declared as follows: Declaration Date Payment Date Per Share Total Amounts Distributed (millions) Quarterly Dividend June 17, 2022 July 2022 0.25 116.7 September 22, 2022 October 2022 0.25 118.4 December 15, 2022 January 2023 0.25 118.6 March 17, 2023 April 2023 0.25 120.8 June 23, 2023 July 2023 0.25 120.8 September 14, 2023 October 2023 0.25 120.8 |
Schedule of Warrants | The table below summarizes the 2020 Warrants at September 30, 2023: Number of Warrants (in millions) Adjusted Weighted Average Exercise Price Initial Adjusted (A) December 31, 2022 22.4 25.6 $ 6.1 Granted — — — Exercised (22.4) (25.6) 6.1 Expired — — — September 30, 2023 — — (A) Reflects the incremental number of additional common stock issuable upon exercise of warrants in accordance with the warrant agreement. |
Schedule of Outstanding Options | As of September 30, 2023, outstanding options were as follows: Held by Former Manager 21,471,990 Issued to the independent directors 2,000 Total 21,473,990 The following table summarizes outstanding options as of September 30, 2023. The last sales price on the New York Stock Exchange for Rithm Capital’s common stock in the quarter ended September 30, 2023 was $9.29 per share. Recipient Date of Grant/ Exercise (A) Number of Unexercised Options Exercisable as of September 30, 2023 Weighted Average Exercise Price (B) Intrinsic Value of Exercisable Options as of September 30, 2023 (millions) Directors Various 2,000 2,000 $ 10.70 $ — Former Manager 2017 1,130,916 1,130,916 12.84 — Former Manager 2018 5,320,000 5,320,000 15.57 — Former Manager 2019 6,351,000 6,351,000 14.95 — Former Manager 2020 1,619,739 1,619,739 16.30 — Former Manager 2021 7,050,335 6,501,162 9.35 — Outstanding 21,473,990 20,924,817 (A) Options expire on the tenth anniversary from date of grant. (B) The exercise prices are subject to adjustment in connection with return of capital dividends. The following table summarizes activity in outstanding options: Number of Options Weighted Average Exercise Price December 31, 2022 21,476,990 $ — Granted — — Exercised — — Expired (3,000) 14.24 September 30, 2023 21,473,990 See table above |
Schedule of Restricted Stock Awards | The table below summarizes the Company’s awards granted, forfeited or vested under the 2013 Plan and the 2023 Plan during the nine months ended September 30, 2023: Number of Shares Grant Date Price RSAs RSUs PSUs Total RSAs RSUs PSUs Unvested Shares at December 31, 2022 578,034 — — 578,034 $ 8.65 $ — $ — Granted — 1,215,329 2,430,658 3,645,987 — 9.52 9.52 Accrued RSU and PSU dividend equivalents (A) — 98,384 196,768 295,152 — 9.52 9.52 Vested (192,678) — — (192,678) 8.65 — — Forfeited — (23,003) (46,006) (69,009) — 9.52 9.52 Unvested Shares at September 30, 2023 (A) 385,356 1,290,710 2,581,420 4,257,486 (A) Number of PSUs assumes maximum levels of performance are achieved for outstanding unvested PSU awards. |
Schedule of Basic and Diluted Earnings Per Share | The following table summarizes the basic and diluted earnings per share calculations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Net income $ 221,191 $ 154,190 $ 697,825 $ 877,452 Noncontrolling interests in income of consolidated subsidiaries 4,848 7,307 10,437 27,098 Dividends on preferred stock 22,394 22,427 67,184 67,315 Net income attributable to common stockholders $ 193,949 $ 124,456 $ 620,204 $ 783,039 Basic weighted average shares of common stock outstanding 483,214,061 467,974,962 481,503,762 467,192,721 Dilutive effect of stock options, restricted stock, common stock purchase warrants, RSUs and PSUs (A)(B) 1,136,227 8,821,795 2,026,465 14,707,408 Diluted weighted average shares of common stock outstanding 484,350,288 476,796,757 483,530,227 481,900,129 Basic earnings per share attributable to common stockholders $ 0.40 $ 0.27 $ 1.29 $ 1.68 Diluted earnings per share attributable to common stockholders $ 0.40 $ 0.26 $ 1.28 $ 1.62 (A) Stock options and common stock purchase warrants that could potentially dilute basic earnings per share in the future were not included in the computation of diluted earnings per share for the periods where they were out-of-the-money or a loss has been recorded because they would have been anti-dilutive for the period presented. There were no anti-dilutive common stock purchase warrants for all periods presented. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of the following: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Current: Federal $ 5,014 $ — $ 5,030 $ — State and local 185 3 306 48 Total current income tax expense (benefit) 5,199 3 5,336 48 Deferred: Federal 41,759 18,654 75,822 250,221 State and local 5,627 3,427 11,151 47,294 Total deferred income tax expense 47,386 22,081 86,973 297,515 Total income tax expense (benefit) $ 52,585 $ 22,084 $ 92,309 $ 297,563 |
BUSINESS AND ORGANIZATION (Deta
BUSINESS AND ORGANIZATION (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 26, 2023 | Oct. 12, 2023 | Jul. 23, 2023 | Jun. 17, 2022 |
Sculptor | ||||
Related Party Transaction [Line Items] | ||||
Proposed consideration | $ 639 | |||
Sculptor | Subsequent Event | ||||
Related Party Transaction [Line Items] | ||||
Proposed consideration | $ 719.8 | $ 676 | ||
Sculptor | Class A | ||||
Related Party Transaction [Line Items] | ||||
Proposed share price (in dollars per share) | $ 11.15 | |||
Sculptor | Class A | Subsequent Event | ||||
Related Party Transaction [Line Items] | ||||
Proposed share price (in dollars per share) | $ 12.70 | $ 12 | ||
Manager | ||||
Related Party Transaction [Line Items] | ||||
Payment for management fee | $ 400 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2020 | Aug. 31, 2019 | Jul. 31, 2019 | Sep. 30, 2023 | Sep. 30, 2023 | |
Cash and Cash Equivalents [Line Items] | |||||
Asset impairment charges | $ 0 | $ 0 | |||
7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||||
Cash and Cash Equivalents [Line Items] | |||||
Interest rate | 7.50% | 7.50% | |||
7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||||
Cash and Cash Equivalents [Line Items] | |||||
Interest rate | 7.125% | 7.125% | |||
6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||||
Cash and Cash Equivalents [Line Items] | |||||
Interest rate | 6.375% | 6.375% |
SEGMENT REPORTING - Segment Fin
SEGMENT REPORTING - Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | ||
Segment Reporting Information [Line Items] | |||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ 442,644 | $ 453,163 | $ 1,378,045 | $ 1,379,041 | |||||
Realization of cash flows | (384,094) | ||||||||
Change in fair value of MSRs and MSR financing receivables | 20,934 | (19,174) | (99,338) | 890,281 | |||||
Servicing revenue, net | 463,578 | 433,989 | 1,278,707 | 2,269,322 | |||||
Interest income | 476,607 | 273,379 | 1,222,007 | 710,440 | |||||
Gain on originated residential mortgage loans, held-for-sale, net | 149,230 | 203,479 | 410,320 | 980,266 | |||||
Total revenues | 1,089,415 | 910,847 | 2,911,034 | 3,960,028 | |||||
Interest expense | 382,554 | 218,089 | 1,020,780 | 507,751 | |||||
G&A and other | 376,624 | 505,608 | 1,103,773 | 2,155,568 | |||||
Total operating expenses | 759,178 | 723,697 | 2,124,553 | 2,663,319 | |||||
Realized and unrealized gains (losses) on investments, net | (127,508) | (34,118) | (113,732) | (256,656) | |||||
Other income (loss), net | 71,047 | 23,242 | 117,385 | 134,962 | |||||
Total other income (loss) | (56,461) | (10,876) | 3,653 | (121,694) | |||||
Income (loss) before income taxes | 273,776 | 176,274 | 790,134 | 1,175,015 | |||||
Income tax expense (benefit) | 52,585 | 22,084 | 92,309 | 297,563 | |||||
Net income (loss) | 221,191 | 154,190 | 697,825 | 877,452 | |||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 4,848 | 7,307 | 10,437 | 27,098 | |||||
Dividends on preferred stock | 22,394 | 22,427 | 67,184 | 67,315 | |||||
Net Income (Loss) Attributable to Common Stockholders - basic | 193,949 | 124,456 | 620,204 | 783,039 | |||||
Investments | 26,642,155 | 26,642,155 | |||||||
Cash and cash equivalents | 1,217,283 | 1,217,283 | |||||||
Restricted cash | 368,447 | 368,447 | |||||||
Other assets | 6,432,444 | 6,432,444 | |||||||
Goodwill | 85,199 | 85,199 | $ 85,199 | ||||||
Total assets | 34,745,528 | 34,745,528 | 32,479,336 | ||||||
Debt | 24,116,609 | 24,116,609 | |||||||
Other liabilities | 3,360,956 | 3,360,956 | |||||||
Total liabilities | 27,477,565 | 27,477,565 | 25,469,268 | ||||||
Total equity | 7,267,963 | 7,061,626 | 7,267,963 | 7,061,626 | $ 7,194,684 | 7,010,068 | $ 7,062,998 | $ 6,669,380 | |
Noncontrolling interests in equity of consolidated subsidiaries | [1] | 59,907 | 59,907 | 67,067 | |||||
Total Rithm Capital stockholders’ equity | 7,208,056 | 7,208,056 | 6,943,001 | ||||||
Investments in equity method investees | 99,352 | 99,352 | |||||||
MSRs | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Realization of cash flows | (138,993) | (141,616) | (384,094) | (522,206) | |||||
Servicing revenue, net | 463,578 | 433,989 | 1,278,707 | 2,269,322 | |||||
Origination | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Goodwill | 11,836 | 11,836 | 11,836 | ||||||
Servicing | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Goodwill | 12,540 | 12,540 | 12,540 | ||||||
MSR Related Investments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Goodwill | 5,092 | 5,092 | $ 5,092 | ||||||
Operating Segments | Origination | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | |||||
Change in fair value of MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | |||||
Servicing revenue, net | 0 | 0 | 0 | 0 | |||||
Interest income | 29,140 | 41,862 | 81,225 | 143,449 | |||||
Gain on originated residential mortgage loans, held-for-sale, net | 126,844 | 214,703 | 373,796 | 924,582 | |||||
Total revenues | 155,984 | 256,565 | 455,021 | 1,068,031 | |||||
Interest expense | 30,725 | 31,345 | 89,333 | 88,358 | |||||
G&A and other | 137,831 | 283,798 | 421,407 | 1,041,988 | |||||
Total operating expenses | 168,556 | 315,143 | 510,740 | 1,130,346 | |||||
Realized and unrealized gains (losses) on investments, net | 22 | 0 | 78 | 0 | |||||
Other income (loss), net | 74 | 1,368 | (261) | 5,295 | |||||
Total other income (loss) | 96 | 1,368 | (183) | 5,295 | |||||
Income (loss) before income taxes | (12,476) | (57,210) | (55,902) | (57,020) | |||||
Income tax expense (benefit) | (3,125) | (14,243) | (14,003) | (14,086) | |||||
Net income (loss) | (9,351) | (42,967) | (41,899) | (42,934) | |||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 269 | 471 | 613 | 2,165 | |||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | |||||
Net Income (Loss) Attributable to Common Stockholders - basic | (9,620) | (43,438) | (42,512) | (45,099) | |||||
Investments | 1,545,881 | 1,545,881 | |||||||
Cash and cash equivalents | 211,544 | 211,544 | |||||||
Restricted cash | 25,967 | 25,967 | |||||||
Other assets | 135,339 | 135,339 | |||||||
Goodwill | 11,836 | 11,836 | |||||||
Total assets | 1,930,567 | 1,930,567 | |||||||
Debt | 1,467,620 | 1,467,620 | |||||||
Other liabilities | 171,398 | 171,398 | |||||||
Total liabilities | 1,639,018 | 1,639,018 | |||||||
Total equity | 291,549 | 291,549 | |||||||
Noncontrolling interests in equity of consolidated subsidiaries | 9,073 | 9,073 | |||||||
Total Rithm Capital stockholders’ equity | 282,476 | 282,476 | |||||||
Investments in equity method investees | 0 | 0 | |||||||
Operating Segments | Servicing | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 372,979 | 338,742 | 1,082,257 | 1,010,252 | |||||
Realization of cash flows | (115,941) | (90,750) | (290,990) | (341,706) | |||||
Change in fair value of MSRs and MSR financing receivables | 95,507 | 39,853 | 103,748 | 881,183 | |||||
Servicing revenue, net | 468,486 | 378,595 | 1,186,005 | 1,891,435 | |||||
Interest income | 127,467 | 55,844 | 314,387 | 83,954 | |||||
Gain on originated residential mortgage loans, held-for-sale, net | 17,295 | 5,980 | 22,882 | 83,481 | |||||
Total revenues | 613,248 | 440,419 | 1,523,274 | 2,058,870 | |||||
Interest expense | 83,845 | 56,650 | 246,525 | 131,452 | |||||
G&A and other | 103,728 | 112,731 | 298,636 | 321,360 | |||||
Total operating expenses | 187,573 | 169,381 | 545,161 | 452,812 | |||||
Realized and unrealized gains (losses) on investments, net | 0 | (1) | 195 | (1,812) | |||||
Other income (loss), net | (700) | (4,074) | (18,971) | 2,061 | |||||
Total other income (loss) | (700) | (4,075) | (18,776) | 249 | |||||
Income (loss) before income taxes | 424,975 | 266,963 | 959,337 | 1,606,307 | |||||
Income tax expense (benefit) | 59,474 | 51,032 | 115,887 | 363,187 | |||||
Net income (loss) | 365,501 | 215,931 | 843,450 | 1,243,120 | |||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | 0 | |||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | |||||
Net Income (Loss) Attributable to Common Stockholders - basic | 365,501 | 215,931 | 843,450 | 1,243,120 | |||||
Investments | 7,823,376 | 7,823,376 | |||||||
Cash and cash equivalents | 417,092 | 417,092 | |||||||
Restricted cash | 139,829 | 139,829 | |||||||
Other assets | 2,714,592 | 2,714,592 | |||||||
Goodwill | 12,540 | 12,540 | |||||||
Total assets | 11,107,429 | 11,107,429 | |||||||
Debt | 4,498,335 | 4,498,335 | |||||||
Other liabilities | 2,374,139 | 2,374,139 | |||||||
Total liabilities | 6,872,474 | 6,872,474 | |||||||
Total equity | 4,234,955 | 4,234,955 | |||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | |||||||
Total Rithm Capital stockholders’ equity | 4,234,955 | 4,234,955 | |||||||
Investments in equity method investees | 0 | 0 | |||||||
Operating Segments | MSR Related Investments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 69,665 | 114,421 | 295,788 | 368,789 | |||||
Change in fair value of MSRs and MSR financing receivables | (74,573) | (59,027) | (203,086) | 9,098 | |||||
Servicing revenue, net | (4,908) | 55,394 | 92,702 | 377,887 | |||||
Interest income | 35,339 | 15,401 | 95,520 | 42,443 | |||||
Gain on originated residential mortgage loans, held-for-sale, net | 0 | 0 | 0 | 0 | |||||
Total revenues | 30,431 | 70,795 | 188,222 | 420,330 | |||||
Interest expense | 33,907 | 26,033 | 95,977 | 78,186 | |||||
G&A and other | 66,275 | 62,817 | 210,811 | 210,774 | |||||
Total operating expenses | 100,182 | 88,850 | 306,788 | 288,960 | |||||
Realized and unrealized gains (losses) on investments, net | 10,453 | (8,717) | 8,366 | (12,062) | |||||
Other income (loss), net | 37,412 | 4,923 | 107,761 | 45,099 | |||||
Total other income (loss) | 47,865 | (3,794) | 116,127 | 33,037 | |||||
Income (loss) before income taxes | (21,886) | (21,849) | (2,439) | 164,407 | |||||
Income tax expense (benefit) | 1,946 | (7,197) | (2,117) | 33,766 | |||||
Net income (loss) | (23,832) | (14,652) | (322) | 130,641 | |||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 1,414 | (139) | 2,113 | 130 | |||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | |||||
Net Income (Loss) Attributable to Common Stockholders - basic | (25,246) | (14,513) | (2,435) | 130,511 | |||||
Investments | 1,114,249 | 1,114,249 | |||||||
Cash and cash equivalents | 233,556 | 233,556 | |||||||
Restricted cash | 119,150 | 119,150 | |||||||
Other assets | 2,323,689 | 2,323,689 | |||||||
Goodwill | 5,092 | 5,092 | |||||||
Total assets | 3,795,736 | 3,795,736 | |||||||
Debt | 2,443,876 | 2,443,876 | |||||||
Other liabilities | 33,624 | 33,624 | |||||||
Total liabilities | 2,477,500 | 2,477,500 | |||||||
Total equity | 1,318,236 | 1,318,236 | |||||||
Noncontrolling interests in equity of consolidated subsidiaries | 12,600 | 12,600 | |||||||
Total Rithm Capital stockholders’ equity | 1,305,636 | 1,305,636 | |||||||
Investments in equity method investees | 65,212 | 65,212 | |||||||
Operating Segments | Origination and Servicing | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 442,644 | 453,163 | 1,378,045 | 1,379,041 | |||||
Change in fair value of MSRs and MSR financing receivables | 20,934 | (19,174) | (99,338) | 890,281 | |||||
Servicing revenue, net | 463,578 | 433,989 | 1,278,707 | 2,269,322 | |||||
Interest income | 191,946 | 113,107 | 491,132 | 269,846 | |||||
Gain on originated residential mortgage loans, held-for-sale, net | 144,139 | 220,683 | 396,678 | 1,010,568 | |||||
Total revenues | 799,663 | 767,779 | 2,166,517 | 3,549,736 | |||||
Interest expense | 148,477 | 114,028 | 431,835 | 297,996 | |||||
G&A and other | 307,834 | 459,346 | 930,854 | 1,574,122 | |||||
Total operating expenses | 456,311 | 573,374 | 1,362,689 | 1,872,118 | |||||
Realized and unrealized gains (losses) on investments, net | 10,475 | (8,718) | 8,639 | (13,874) | |||||
Other income (loss), net | 36,786 | 2,217 | 88,529 | 52,455 | |||||
Total other income (loss) | 47,261 | (6,501) | 97,168 | 38,581 | |||||
Income (loss) before income taxes | 390,613 | 187,904 | 900,996 | 1,716,199 | |||||
Income tax expense (benefit) | 58,295 | 29,592 | 99,767 | 382,867 | |||||
Net income (loss) | 332,318 | 158,312 | 801,229 | 1,333,332 | |||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 1,683 | 332 | 2,726 | 2,295 | |||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | |||||
Net Income (Loss) Attributable to Common Stockholders - basic | 330,635 | 157,980 | 798,503 | 1,331,037 | |||||
Investments | 10,483,506 | 10,483,506 | |||||||
Cash and cash equivalents | 862,192 | 862,192 | |||||||
Restricted cash | 284,946 | 284,946 | |||||||
Other assets | 5,173,620 | 5,173,620 | |||||||
Goodwill | 29,468 | 29,468 | |||||||
Total assets | 16,833,732 | 16,833,732 | |||||||
Debt | 8,409,831 | 8,409,831 | |||||||
Other liabilities | 2,579,161 | 2,579,161 | |||||||
Total liabilities | 10,988,992 | 10,988,992 | |||||||
Total equity | 5,844,740 | 5,844,740 | |||||||
Noncontrolling interests in equity of consolidated subsidiaries | 21,673 | 21,673 | |||||||
Total Rithm Capital stockholders’ equity | 5,823,067 | 5,823,067 | |||||||
Investments in equity method investees | 65,212 | 65,212 | |||||||
Operating Segments | Residential Securities, Properties and Loans | Real Estate Securities | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | |||||
Change in fair value of MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | |||||
Servicing revenue, net | 0 | 0 | 0 | 0 | |||||
Interest income | 140,119 | 76,908 | 376,842 | 187,841 | |||||
Gain on originated residential mortgage loans, held-for-sale, net | 0 | 0 | 1,247 | 0 | |||||
Total revenues | 140,119 | 76,908 | 378,089 | 187,841 | |||||
Interest expense | 136,180 | 51,822 | 350,044 | 81,067 | |||||
G&A and other | 1,009 | 921 | 3,199 | 2,403 | |||||
Total operating expenses | 137,189 | 52,743 | 353,243 | 83,470 | |||||
Realized and unrealized gains (losses) on investments, net | (127,458) | (130,456) | (96,015) | (331,019) | |||||
Other income (loss), net | (2,644) | (2,799) | (4,514) | (7,526) | |||||
Total other income (loss) | (130,102) | (133,255) | (100,529) | (338,545) | |||||
Income (loss) before income taxes | (127,172) | (109,090) | (75,683) | (234,174) | |||||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | |||||
Net income (loss) | (127,172) | (109,090) | (75,683) | (234,174) | |||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | 0 | |||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | |||||
Net Income (Loss) Attributable to Common Stockholders - basic | (127,172) | (109,090) | (75,683) | (234,174) | |||||
Investments | 10,193,596 | 10,193,596 | |||||||
Cash and cash equivalents | 328,794 | 328,794 | |||||||
Restricted cash | 3,543 | 3,543 | |||||||
Other assets | 830,971 | 830,971 | |||||||
Goodwill | 0 | 0 | |||||||
Total assets | 11,356,904 | 11,356,904 | |||||||
Debt | 10,227,701 | 10,227,701 | |||||||
Other liabilities | 148,823 | 148,823 | |||||||
Total liabilities | 10,376,524 | 10,376,524 | |||||||
Total equity | 980,380 | 980,380 | |||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | |||||||
Total Rithm Capital stockholders’ equity | 980,380 | 980,380 | |||||||
Investments in equity method investees | 0 | 0 | |||||||
Operating Segments | Residential Securities, Properties and Loans | Properties and Residential Mortgage Loans | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | |||||
Change in fair value of MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | |||||
Servicing revenue, net | 0 | 0 | 0 | 0 | |||||
Interest income | 23,993 | 19,186 | 73,050 | 68,815 | |||||
Gain on originated residential mortgage loans, held-for-sale, net | 5,091 | (17,204) | 12,395 | (30,302) | |||||
Total revenues | 29,084 | 1,982 | 85,445 | 38,513 | |||||
Interest expense | 30,753 | 21,242 | 87,775 | 53,442 | |||||
G&A and other | 13,531 | 12,220 | 36,303 | 47,545 | |||||
Total operating expenses | 44,284 | 33,462 | 124,078 | 100,987 | |||||
Realized and unrealized gains (losses) on investments, net | (7,865) | 81,829 | (22,228) | 100,594 | |||||
Other income (loss), net | 40,330 | 11,448 | 82,509 | 55,235 | |||||
Total other income (loss) | 32,465 | 93,277 | 60,281 | 155,829 | |||||
Income (loss) before income taxes | 17,265 | 61,797 | 21,648 | 93,355 | |||||
Income tax expense (benefit) | (4,656) | (5,564) | (3,436) | (4,387) | |||||
Net income (loss) | 21,921 | 67,361 | 25,084 | 97,742 | |||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | 0 | |||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | |||||
Net Income (Loss) Attributable to Common Stockholders - basic | 21,921 | 67,361 | 25,084 | 97,742 | |||||
Investments | 2,393,549 | 2,393,549 | |||||||
Cash and cash equivalents | 2,315 | 2,315 | |||||||
Restricted cash | 14,501 | 14,501 | |||||||
Other assets | 115,413 | 115,413 | |||||||
Goodwill | 0 | 0 | |||||||
Total assets | 2,525,778 | 2,525,778 | |||||||
Debt | 1,943,551 | 1,943,551 | |||||||
Other liabilities | 403,021 | 403,021 | |||||||
Total liabilities | 2,346,572 | 2,346,572 | |||||||
Total equity | 179,206 | 179,206 | |||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | |||||||
Total Rithm Capital stockholders’ equity | 179,206 | 179,206 | |||||||
Investments in equity method investees | 0 | 0 | |||||||
Operating Segments | Consumer Loans | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | |||||
Change in fair value of MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | |||||
Servicing revenue, net | 0 | 0 | 0 | 0 | |||||
Interest income | 58,946 | 16,456 | 97,634 | 53,498 | |||||
Gain on originated residential mortgage loans, held-for-sale, net | 0 | 0 | 0 | 0 | |||||
Total revenues | 58,946 | 16,456 | 97,634 | 53,498 | |||||
Interest expense | 26,285 | 1,925 | 32,280 | 6,275 | |||||
G&A and other | 4,542 | 1,991 | 9,042 | 6,405 | |||||
Total operating expenses | 30,827 | 3,916 | 41,322 | 12,680 | |||||
Realized and unrealized gains (losses) on investments, net | (4,111) | (5,845) | (14,095) | (26,774) | |||||
Other income (loss), net | (2,410) | 8,701 | (5,736) | 33,198 | |||||
Total other income (loss) | (6,521) | 2,856 | (19,831) | 6,424 | |||||
Income (loss) before income taxes | 21,598 | 15,396 | 36,481 | 47,242 | |||||
Income tax expense (benefit) | 62 | (4) | 169 | 34 | |||||
Net income (loss) | 21,536 | 15,400 | 36,312 | 47,208 | |||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 3,165 | 6,975 | 7,711 | 24,803 | |||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | |||||
Net Income (Loss) Attributable to Common Stockholders - basic | 18,371 | 8,425 | 28,601 | 22,405 | |||||
Investments | 1,436,080 | 1,436,080 | |||||||
Cash and cash equivalents | 533 | 533 | |||||||
Restricted cash | 19,703 | 19,703 | |||||||
Other assets | 94,540 | 94,540 | |||||||
Goodwill | 0 | 0 | |||||||
Total assets | 1,550,856 | 1,550,856 | |||||||
Debt | 1,269,768 | 1,269,768 | |||||||
Other liabilities | 9,092 | 9,092 | |||||||
Total liabilities | 1,278,860 | 1,278,860 | |||||||
Total equity | 271,996 | 271,996 | |||||||
Noncontrolling interests in equity of consolidated subsidiaries | 38,234 | 38,234 | |||||||
Total Rithm Capital stockholders’ equity | 233,762 | 233,762 | |||||||
Investments in equity method investees | 0 | 0 | |||||||
Operating Segments | Mortgage Loans Receivable | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | |||||
Change in fair value of MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | |||||
Servicing revenue, net | 0 | 0 | 0 | 0 | |||||
Interest income | 59,461 | 42,335 | 176,607 | 113,360 | |||||
Gain on originated residential mortgage loans, held-for-sale, net | 0 | 0 | 0 | 0 | |||||
Total revenues | 59,461 | 42,335 | 176,607 | 113,360 | |||||
Interest expense | 31,751 | 18,888 | 91,725 | 38,537 | |||||
G&A and other | 15,524 | 15,241 | 46,550 | 46,249 | |||||
Total operating expenses | 47,275 | 34,129 | 138,275 | 84,786 | |||||
Realized and unrealized gains (losses) on investments, net | 1,451 | 29,072 | 9,967 | 14,417 | |||||
Other income (loss), net | 5,369 | 5,710 | 6,260 | 13,140 | |||||
Total other income (loss) | 6,820 | 34,782 | 16,227 | 27,557 | |||||
Income (loss) before income taxes | 19,006 | 42,988 | 54,559 | 56,131 | |||||
Income tax expense (benefit) | (1,116) | (1,940) | (4,191) | (5,563) | |||||
Net income (loss) | 20,122 | 44,928 | 58,750 | 61,694 | |||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | 0 | |||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | |||||
Net Income (Loss) Attributable to Common Stockholders - basic | 20,122 | 44,928 | 58,750 | 61,694 | |||||
Investments | 2,135,424 | 2,135,424 | |||||||
Cash and cash equivalents | 19,411 | 19,411 | |||||||
Restricted cash | 45,754 | 45,754 | |||||||
Other assets | 99,095 | 99,095 | |||||||
Goodwill | 55,731 | 55,731 | |||||||
Total assets | 2,355,415 | 2,355,415 | |||||||
Debt | 1,719,384 | 1,719,384 | |||||||
Other liabilities | 25,532 | 25,532 | |||||||
Total liabilities | 1,744,916 | 1,744,916 | |||||||
Total equity | 610,499 | 610,499 | |||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | |||||||
Total Rithm Capital stockholders’ equity | 610,499 | 610,499 | |||||||
Investments in equity method investees | 0 | 0 | |||||||
Operating Segments | Corporate | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | |||||
Change in fair value of MSRs and MSR financing receivables | 0 | 0 | 0 | 0 | |||||
Servicing revenue, net | 0 | 0 | 0 | 0 | |||||
Interest income | 2,142 | 5,387 | 6,742 | 17,080 | |||||
Gain on originated residential mortgage loans, held-for-sale, net | 0 | 0 | 0 | 0 | |||||
Total revenues | 2,142 | 5,387 | 6,742 | 17,080 | |||||
Interest expense | 9,108 | 10,184 | 27,121 | 30,434 | |||||
G&A and other | 34,184 | 15,889 | 77,825 | 478,844 | |||||
Total operating expenses | 43,292 | 26,073 | 104,946 | 509,278 | |||||
Realized and unrealized gains (losses) on investments, net | 0 | 0 | 0 | 0 | |||||
Other income (loss), net | (6,384) | (2,035) | (49,663) | (11,540) | |||||
Total other income (loss) | (6,384) | (2,035) | (49,663) | (11,540) | |||||
Income (loss) before income taxes | (47,534) | (22,721) | (147,867) | (503,738) | |||||
Income tax expense (benefit) | 0 | 0 | 0 | (75,388) | |||||
Net income (loss) | (47,534) | (22,721) | (147,867) | (428,350) | |||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | 0 | |||||
Dividends on preferred stock | 22,394 | 22,427 | 67,184 | 67,315 | |||||
Net Income (Loss) Attributable to Common Stockholders - basic | (69,928) | $ (45,148) | (215,051) | (495,665) | |||||
Investments | 0 | 0 | |||||||
Cash and cash equivalents | 4,038 | 4,038 | |||||||
Restricted cash | 0 | 0 | |||||||
Other assets | 118,805 | 118,805 | |||||||
Goodwill | 0 | 0 | |||||||
Total assets | 122,843 | 122,843 | |||||||
Debt | 546,374 | 546,374 | |||||||
Other liabilities | 195,327 | 195,327 | |||||||
Total liabilities | 741,701 | 741,701 | |||||||
Total equity | (618,858) | (618,858) | |||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | |||||||
Total Rithm Capital stockholders’ equity | (618,858) | (618,858) | |||||||
Investments in equity method investees | $ 34,140 | $ 34,140 | |||||||
Eliminations | Origination and Servicing | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Gain on originated residential mortgage loans, held-for-sale, net | $ (2,500) | ||||||||
[1]The Company's Consolidated Balance Sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations and liabilities of the VIE for which creditors do not have recourse to the primary beneficiary (Rithm Capital). As of September 30, 2023 and December 31, 2022, total assets of consolidated VIEs were $2.2 billion and $2.3 billion, respectively, and total liabilities of consolidated VIEs were $1.8 billion and $1.8 billion, respectively. See Note 20 for further details. |
SEGMENT REPORTING - Servicing S
SEGMENT REPORTING - Servicing Segment Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Realization of cash flows | $ (384,094) | |||
Servicing revenue, net | $ 463,578 | $ 433,989 | 1,278,707 | $ 2,269,322 |
Servicing | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 340,575 | 309,921 | 994,160 | 913,808 |
Ancillary and other fees | 32,404 | 28,821 | 88,097 | 96,444 |
Realization of cash flows | (115,941) | (90,750) | (290,990) | (341,706) |
Change in valuation inputs and assumptions and other | 211,448 | 130,603 | 394,738 | 1,222,889 |
Servicing revenue, net | 468,486 | 378,595 | 1,186,005 | 1,891,435 |
Servicing | MSR-owned assets | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 316,042 | 284,611 | 919,913 | 835,368 |
Residential mortgage loan UPB and other collateral | 455,237 | 401,826 | 455,237 | 401,826 |
Servicing | Residential whole loans | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 2,217 | 2,593 | 6,553 | 9,001 |
Residential mortgage loan UPB and other collateral | 8,480 | 9,930 | 8,480 | 9,930 |
Servicing | Third party | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 22,316 | 22,717 | 67,694 | 69,439 |
Residential mortgage loan UPB and other collateral | $ 99,372 | $ 91,820 | $ 99,372 | $ 91,820 |
EXCESS MORTGAGE SERVICING RIG_3
EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Excess Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Servicing Assets at Fair Value [Line Items] | ||
Fair value | $ 8,694,868 | $ 8,889,403 |
Excess mortgage servicing rights, at fair value | ||
Servicing Assets at Fair Value [Line Items] | ||
Fair value | 282,976 | 321,803 |
Direct investments in Excess MSRs | ||
Servicing Assets at Fair Value [Line Items] | ||
Fair value | 217,764 | 249,366 |
Excess MSR joint ventures | ||
Servicing Assets at Fair Value [Line Items] | ||
Fair value | $ 65,212 | $ 72,437 |
EXCESS MORTGAGE SERVICING RIG_4
EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Activity Related to the Carrying Value of Investments in Excess MSRs (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Carrying Value of Investments in Excess MSRs | |
Beginning balance | $ 8,889,403 |
Ending balance | 8,694,868 |
Excess MSRs | |
Carrying Value of Investments in Excess MSRs | |
Beginning balance | 249,366 |
Interest income | 16,733 |
Other income | 150 |
Proceeds from repayments | (33,901) |
Proceeds from sales | (669) |
Change in fair value | (13,915) |
Ending balance | $ 217,764 |
EXCESS MORTGAGE SERVICING RIG_5
EXCESS MORTGAGE SERVICING RIGHTS - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 02, 2023 | Sep. 30, 2023 | |
Excess MSR joint ventures | MSRs | ||
Schedule of Equity Method Investments [Line Items] | ||
Discount rate | 8.80% | |
Subsequent Event | Computershare Mortgage Services Inc | ||
Schedule of Equity Method Investments [Line Items] | ||
Business combination, consideration transferred | $ 720 |
EXCESS MORTGAGE SERVICING RIG_6
EXCESS MORTGAGE SERVICING RIGHTS - Summary of Direct Investments in Excess MSRs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||||
Weighted Average Life (Years) | 1 year | ||||
Agency | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Original and Recaptured Pools | $ (3,498) | $ (3,857) | $ (13,915) | $ (5,421) | |
Servicer advance investments | Servicer Advances | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Unpaid Principal Balance | 15,654,419 | 15,654,419 | $ 17,033,753 | ||
Excess MSRs | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Unpaid Principal Balance | 44,294,807 | $ 44,294,807 | |||
Weighted Average Life (Years) | 6 years 6 months | ||||
Amortized Cost Basis | 189,814 | $ 189,814 | |||
Carrying Value | $ 217,764 | $ 217,764 | $ 249,366 | ||
Excess MSRs | Minimum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 32,500% | 32,500% | |||
Excess MSRs | Maximum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 100% | 100% | |||
Excess MSRs | Weighted Average | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 56,400% | 56,400% | |||
Excess MSRs | Former Manager-managed funds | Minimum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 0% | 0% | |||
Excess MSRs | Former Manager-managed funds | Maximum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 50% | 50% | |||
Excess MSRs | Mr. Cooper | Minimum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 0% | 0% | |||
Excess MSRs | Mr. Cooper | Maximum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 35% | 35% |
EXCESS MORTGAGE SERVICING RIG_7
EXCESS MORTGAGE SERVICING RIGHTS - Summary of Financial Results of Excess MSR Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||||||||
Excess MSR | $ 120,292 | $ 120,292 | $ 135,356 | |||||
Other assets | 151,469 | 151,469 | 132,809 | |||||
Equity | 7,267,963 | $ 7,061,626 | 7,267,963 | $ 7,061,626 | $ 7,194,684 | 7,010,068 | $ 7,062,998 | $ 6,669,380 |
Rithm Capital’s investment | 8,694,868 | 8,694,868 | 8,889,403 | |||||
Interest income | 5,397 | 4,437 | 11,079 | 10,514 | ||||
Other income (loss) | (2,391) | (12,074) | (6,949) | (14,417) | ||||
Expenses | (8) | (8) | (24) | (24) | ||||
Net income (loss) | 221,191 | 154,190 | 697,825 | 877,452 | ||||
Excess MSR joint ventures | ||||||||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||||||||
Rithm Capital’s investment | $ 65,212 | $ 65,212 | $ 72,437 | |||||
Rithm Capital’s percentage ownership | 50% | 50% | 50% | |||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||||||||
Other assets | $ 10,818 | $ 10,818 | $ 10,204 | |||||
Other liabilities | (687) | (687) | (687) | |||||
Equity | 130,423 | 130,423 | $ 144,873 | |||||
Net income (loss) | $ 2,998 | $ (7,645) | $ 4,106 | $ (3,927) |
EXCESS MORTGAGE SERVICING RIG_8
EXCESS MORTGAGE SERVICING RIGHTS - Summary of Equity Method Investees Changed - Roll Forward (Details) - Recurring Basis $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Increase (Decrease) in Equity Method Investments [Roll Forward] | |
Beginning balance | $ 72,437 |
Distributions of earnings from equity method investees | 0 |
Distributions of capital from equity method investees | (9,278) |
Change in fair value of investments in equity method investees | 2,053 |
Ending balance | $ 65,212 |
EXCESS MORTGAGE SERVICING RIG_9
EXCESS MORTGAGE SERVICING RIGHTS - Summary of Excess MSRs Made Through Equity Method Investees (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||
Weighted Average Life (Years) | 1 year | |
Excess MSR joint ventures | ||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||
Rithm Capital Interest in Investees | 50% | 50% |
Excess MSR joint ventures | Agency Securities | ||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||
Rithm Capital Interest in Investees | 50% | |
Excess MSR joint ventures | Agency Securities | Agency | ||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||
Unpaid Principal Balance | $ 17,693,521 | |
Investee Interest in Excess MSR | 66.70% | |
Rithm Capital Interest in Investees | 50% | |
Amortized Cost Basis | $ 98,681 | |
Carrying Value | $ 120,292 | |
Weighted Average Life (Years) | 5 years 4 months 24 days |
MORTGAGE SERVICING RIGHTS AND_3
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Carrying Value of Investments in MSRs and MSR Financing Receivables (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Activity related to carrying value of investments in mortgage servicing rights [Roll Forward] | |
Beginning balance | $ 8,889,403 |
Purchases, net | 0 |
Originations | 609,460 |
Proceeds from sales | (704,657) |
Realization of cash flows | (384,094) |
Change in valuation inputs and assumptions | 284,756 |
Ending balance | 8,694,868 |
Servicing asset at fair value, disposals, unpaid principal balance | 91,400,000 |
Gain on sale of servicing asset, net | $ 5,200 |
MORTGAGE SERVICING RIGHTS AND_4
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Servicing Fee Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Servicing Asset at Amortized Cost [Line Items] | ||||
Realization of cash flows | $ (384,094) | |||
Change in valuation inputs and assumptions, net of realized gains (losses) | (284,756) | |||
Change in fair value of derivative instruments | $ 0 | $ (18,505) | 0 | $ (11,316) |
Servicing revenue, net | 463,578 | 433,989 | 1,278,707 | 2,269,322 |
MSRs | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 412,386 | 419,793 | 1,284,583 | 1,276,137 |
Ancillary and other fees | 30,258 | 33,370 | 93,462 | 102,904 |
Servicing fee revenue, net and fees | 442,644 | 453,163 | 1,378,045 | 1,379,041 |
Realization of cash flows | (138,993) | (141,616) | (384,094) | (522,206) |
Change in valuation inputs and assumptions, net of realized gains (losses) | 159,927 | 143,174 | 284,756 | 1,502,844 |
Change in fair value of derivative instruments | 0 | (18,505) | 0 | (11,316) |
Gain (loss) on settlement of derivative instruments | 0 | (2,227) | 0 | (79,041) |
Servicing revenue, net | $ 463,578 | $ 433,989 | $ 1,278,707 | $ 2,269,322 |
MORTGAGE SERVICING RIGHTS AND_5
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Investment in MSRs (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | ||
Servicing Asset at Amortized Cost [Line Items] | |||
Weighted Average Life (Years) | 1 year | ||
Fair value | $ 8,694,868 | $ 8,889,403 | |
Residential mortgage loan repurchase liability | [1] | 1,443,546 | $ 1,219,890 |
Mortgage Servicing Rights and Mortgage Servicing Rights Financing Receivable | |||
Servicing Asset at Amortized Cost [Line Items] | |||
UPB of Underlying Residential Mortgage Loans | $ 530,921,220 | ||
Weighted Average Life (Years) | 7 years 10 months 24 days | ||
Fair value | $ 8,694,868 | ||
MSRs | Weighted Average | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Discount rate | 8.50% | ||
MSRs | Minimum | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Discount rate | 7.90% | ||
MSRs | Maximum | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Discount rate | 10.80% | ||
Agency | MSRs | |||
Servicing Asset at Amortized Cost [Line Items] | |||
UPB of Underlying Residential Mortgage Loans | $ 354,510,758 | ||
Weighted Average Life (Years) | 8 years 1 month 6 days | ||
Fair value | $ 5,393,329 | ||
Non-Agency | MSRs | |||
Servicing Asset at Amortized Cost [Line Items] | |||
UPB of Underlying Residential Mortgage Loans | $ 50,056,162 | ||
Weighted Average Life (Years) | 6 years 10 months 24 days | ||
Fair value | $ 704,873 | ||
Ginnie Mae | MSRs | |||
Servicing Asset at Amortized Cost [Line Items] | |||
UPB of Underlying Residential Mortgage Loans | $ 126,354,300 | ||
Weighted Average Life (Years) | 7 years 8 months 12 days | ||
Fair value | $ 2,596,666 | ||
[1]See Note 5 for details. |
MORTGAGE SERVICING RIGHTS AND_6
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Jan. 31, 2018 | Jul. 31, 2017 | ||
Schedule of MSRs [Line Items] | ||||||
Residential mortgage loan repurchase liability | [1] | $ 1,443,546 | $ 1,219,890 | |||
Residential mortgage loans, held-for-sale | 2,819,282 | 3,398,298 | ||||
Reserve for non-recovery advances | $ 108,791 | $ 65,428 | ||||
Reserve for non-recovery advances, percent | 4.30% | 2.30% | ||||
Ocwen | Rithm Capital | ||||||
Schedule of MSRs [Line Items] | ||||||
Unpaid principal balance of underlying loans, transferred | $ 66,700,000 | |||||
Unpaid principal balance of underlying loans, not yet transferred | $ 11,600,000 | |||||
PHH Mortgage Corporation | ||||||
Schedule of MSRs [Line Items] | ||||||
Subservicer percent of UPB | 8.70% | |||||
Valon | ||||||
Schedule of MSRs [Line Items] | ||||||
Subservicer percent of UPB | 3.90% | |||||
LoanCare | ||||||
Schedule of MSRs [Line Items] | ||||||
Subservicer percent of UPB | 1.60% | |||||
Newrez and Caliber | ||||||
Schedule of MSRs [Line Items] | ||||||
Subservicer percent of UPB | 85.80% | |||||
Ginnie Mae Loans | ||||||
Schedule of MSRs [Line Items] | ||||||
Residential mortgage loans, held-for-sale | $ 400,000 | |||||
Ocwen | ||||||
Schedule of MSRs [Line Items] | ||||||
Residential mortgage loan UPB and other collateral | $ 86,800,000 | $ 110,000,000 | ||||
Mortgage Loans Serviced | ||||||
Schedule of MSRs [Line Items] | ||||||
Residential mortgage loan UPB and other collateral | 99,400,000 | $ 91,800,000 | ||||
Subservicing revenue | $ 104,000 | $ 100,400 | ||||
[1]See Note 5 for details. |
MORTGAGE SERVICING RIGHTS AND_7
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans (Details) - MSRs - Mortgage Loans | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 100% | 100% |
California | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 17.10% | 17.40% |
Florida | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 8.60% | 8.60% |
Texas | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 6.20% | 6.20% |
New York | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 6% | 6% |
Washington | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 5.80% | 5.90% |
New Jersey | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.30% | 4.40% |
Virginia | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.60% | 3.60% |
Maryland | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.40% | 3.40% |
Illinois | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.30% | 3.40% |
Georgia | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3% | 2.90% |
Other U.S. | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 38.70% | 38.20% |
MORTGAGE SERVICING RIGHTS AND_8
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Advances Included in Servicing Advances Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Total | $ 387,669 | $ 398,820 |
Servicer Advances Receivable | ||
Schedule of Equity Method Investments [Line Items] | ||
Principal and interest advances | 579,277 | 664,495 |
Escrow advances (taxes and insurance advances) | 1,093,779 | 1,426,409 |
Foreclosure advances | 833,680 | 754,073 |
Total | 2,506,736 | 2,844,977 |
Servicer advances receivable related to agency MSRs | 426,500 | 526,500 |
Servicer advances receivable related to Ginnie Mae MSRS, recoverable from Ginnie Mae | 296,100 | 261,800 |
Servicer advances, unamortized discount and accrual | $ 72,500 | $ 19,500 |
MORTGAGE SERVICING RIGHTS AND_9
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Summary of Reserve For Servicer Advances (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Servicer Advances Reserve [Roll Forward] | |
Beginning balance | $ 65,428 |
Provision | 58,214 |
Write-offs | (14,851) |
Ending balance | $ 108,791 |
SERVICER ADVANCE INVESTMENTS -
SERVICER ADVANCE INVESTMENTS - Narrative (Details) - Advance Purchaser - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Schedule of Equity Method Investments [Line Items] | |||
Capital distributed to third-party co-investors | $ 71.5 | ||
Capital distributed to new residential | $ 597.9 | ||
Servicer advance investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Rithm Capital’s percentage ownership | 89.30% | 89.30% | 89.30% |
SERVICER ADVANCE INVESTMENTS _2
SERVICER ADVANCE INVESTMENTS - Summary of Investments in Servicer Advances (Details) - Servicer advance investments - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Investments in and Advances to Affiliates [Line Items] | ||
Amortized Cost Basis | $ 361,325 | $ 392,749 |
Carrying Value | $ 387,669 | $ 398,820 |
Weighted Average Discount Rate | 6.20% | 5.70% |
Weighted Average Yield | 7.10% | 5.60% |
Weighted Average Life (Years) | 8 years 7 months 6 days | 8 years 4 months 24 days |
SERVICER ADVANCE INVESTMENTS _3
SERVICER ADVANCE INVESTMENTS - Summary of Investments in Servicer Advances (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investments in and Advances to Affiliates [Line Items] | ||
Outstanding Servicer Advances | $ 387,669 | $ 398,820 |
Face Amount of Secured Notes and Bonds Payable | 23,677,829 | |
Servicer advance investments | Servicer Advances | ||
Investments in and Advances to Affiliates [Line Items] | ||
UPB of Underlying Residential Mortgage Loans | 15,654,419 | 17,033,753 |
Outstanding Servicer Advances | $ 314,165 | $ 341,628 |
Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2% | 2% |
Face Amount of Secured Notes and Bonds Payable | $ 275,952 | $ 319,276 |
Gross Loan-to-Value | 84.10% | 90.20% |
Net Loan-to-Value | 81.90% | 88.30% |
Gross Cost of Funds | 7.50% | 6.50% |
Net Cost of Funds | 6.90% | 5.90% |
SERVICER ADVANCE INVESTMENTS _4
SERVICER ADVANCE INVESTMENTS - Summary of Investments in Servicer Advances - Components of Funded Advances (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Total | $ 387,669 | $ 398,820 |
Servicer advance investments | Servicer Advances | ||
Schedule of Equity Method Investments [Line Items] | ||
Principal and interest advances | 55,058 | 66,892 |
Escrow advances (taxes and insurance advances) | 142,995 | 155,438 |
Foreclosure advances | 116,112 | 119,298 |
Total | $ 314,165 | $ 341,628 |
REAL ESTATE AND OTHER SECURIT_3
REAL ESTATE AND OTHER SECURITIES - Summary of Real Estate Securities (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 25,859,938 | |
Carrying Value | $ 9,201,474 | $ 8,289,277 |
Weighted Average Life (Years) | 1 year | |
Investments | $ 26,642,155 | |
Residual Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | 17,800 | |
Non-Agency Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | 800 | |
AFS Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 75,928 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 65,093 | 73,439 |
Number of Securities | security | 1 | |
Weighted Average Coupon | 3.50% | |
Weighted Average Yield | 3.50% | |
Weighted Average Life (Years) | 10 years 10 months 24 days | |
AFS Non-Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 2,516,651 | |
Gross Unrealized Gains | 72,278 | |
Gross Unrealized Losses | (32,923) | |
Carrying Value | $ 366,972 | 397,076 |
Number of Securities | security | 333 | |
Weighted Average Coupon | 3.50% | |
Weighted Average Yield | 3.90% | |
Weighted Average Life (Years) | 5 years 6 months | |
FVO Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 8,655,669 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (253,951) | |
Carrying Value | $ 8,235,153 | 7,264,978 |
Number of Securities | security | 44 | |
Weighted Average Coupon | 5.20% | |
Weighted Average Yield | 5.20% | |
Weighted Average Life (Years) | 9 years 7 months 6 days | |
FVO Non-Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 14,611,690 | |
Gross Unrealized Gains | 59,989 | |
Gross Unrealized Losses | (97,944) | |
Carrying Value | $ 534,256 | 553,784 |
Number of Securities | security | 354 | |
Weighted Average Coupon | 2.90% | |
Weighted Average Yield | 6.60% | |
Weighted Average Life (Years) | 8 years 1 month 6 days | |
Agency And Non-Agency Residential Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 25,859,938 | |
Gross Unrealized Gains | 132,267 | |
Gross Unrealized Losses | (384,818) | |
Carrying Value | $ 9,201,474 | $ 8,289,277 |
Number of Securities | security | 732 | |
Weighted Average Coupon | 5.20% | |
Weighted Average Yield | 5.20% | |
Weighted Average Life (Years) | 9 years 10 months 24 days | |
Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 8,731,597 | |
Agency | Fixed Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 8,700,000 | |
Non-Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 17,128,341 | |
Non-Agency | Fixed Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 7,900,000 | |
Residual and interest - only notional amount | 7,000,000 | |
Non-Agency | Floating Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 9,200,000 | |
Residual and interest - only notional amount | 9,000,000 | |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 514 | |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 512 | |
Number of Securities | security | 2 | |
Weighted Average Coupon | 8.20% | |
Weighted Average Yield | 9.50% | |
Weighted Average Life (Years) | 1 year 6 months | |
Consumer loan bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 301 | |
Gross Unrealized Gains | 663 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 663 | |
Number of Securities | security | 2 | |
Weighted Average Life (Years) | 1 month 6 days | |
Interest-only securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 9,247,297 | |
Gross Unrealized Gains | 33,197 | |
Gross Unrealized Losses | (31,955) | |
Carrying Value | $ 139,108 | |
Number of Securities | security | 145 | |
Weighted Average Coupon | 0.80% | |
Weighted Average Yield | 9.50% | |
Weighted Average Life (Years) | 2 years 4 months 24 days | |
Servicing strips | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 4,087,218 | |
Gross Unrealized Gains | 17,726 | |
Gross Unrealized Losses | (3,734) | |
Carrying Value | $ 50,737 | |
Number of Securities | security | 61 | |
Weighted Average Coupon | 0.20% | |
Weighted Average Yield | 15.20% | |
Weighted Average Life (Years) | 3 years 10 months 24 days | |
Commercial Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 3,931 | |
Gross Unrealized Gains | 103 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 3,900 | |
Number of Securities | security | 2 | |
Weighted Average Coupon | 7.90% | |
Weighted Average Yield | 8.80% | |
Weighted Average Life (Years) | 1 year 7 months 6 days |
REAL ESTATE AND OTHER SECURIT_4
REAL ESTATE AND OTHER SECURITIES - Real Estate and Other Securities for Held to Maturity securities (Details) | 9 Months Ended | |
Sep. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Outstanding Face Amount | $ 25,859,938,000 | |
Weighted Average Life (Years) | 1 year | |
Residential Mortgage Backed Securities, Held To Maturity, Treasury | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Outstanding Face Amount | $ 1,000,000,000 | |
Amortized Cost / Carrying Value | 992,122,000 | $ 0 |
Fair Value | 992,183,000 | |
Unrecognized Gains/(Losses) | $ 61,000 | |
Number of Securities | security | 1 | |
Weighted Average Yield | 5.40% | |
Weighted Average Life (Years) | 2 months 12 days |
REAL ESTATE AND OTHER SECURIT_5
REAL ESTATE AND OTHER SECURITIES - Schedule of Investment in Real Estate Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Treasury | ||||
Purchases | ||||
Face | $ 0 | $ 1,000 | ||
Purchase price | 0 | 973.8 | ||
Sales | ||||
Face | 0 | 0 | ||
Amortized cost | 0 | 0 | ||
Sale price | 0 | 0 | ||
Gain (loss) on sale | 0 | 0 | ||
Agency | ||||
Purchases | ||||
Face | 1,211.3 | $ 9,053.2 | 3,373.7 | $ 10,051.4 |
Purchase price | 1,196.2 | 9,041.6 | 3,350.6 | 10,046.1 |
Sales | ||||
Face | 230 | 7,767.1 | 1,692.4 | 8,596.9 |
Amortized cost | 229.8 | 7,987.1 | 1,672.6 | 8,844.1 |
Sale price | 219.6 | 6,965.4 | 1,615.5 | 7,704.3 |
Gain (loss) on sale | (10.2) | (1,021.8) | (57.1) | (1,139.9) |
Non-Agency | ||||
Purchases | ||||
Face | 0 | 906.7 | 472.6 | 4,189.8 |
Purchase price | 0 | 69.1 | 32.6 | 217.7 |
Sales | ||||
Face | 0 | 15.3 | 0 | 15.3 |
Amortized cost | 0 | 12 | 0.2 | 13.6 |
Sale price | 0 | 12 | 0 | 12 |
Gain (loss) on sale | $ 0 | $ (0.1) | $ (0.2) | $ (1.6) |
REAL ESTATE AND OTHER SECURIT_6
REAL ESTATE AND OTHER SECURITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Agency | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Face amount of securities sold | $ 230 | $ 230 | $ 490.8 | ||
Proceeds of securities sold, unsettled | 219.6 | 471.6 | |||
Face amount of securities purchased, unsettled | 738.4 | ||||
Payments for securities purchased, unsettled | $ 730 | ||||
Debt securities, face amount of purchased securities | 1,211.3 | $ 9,053.2 | 3,373.7 | $ 10,051.4 | |
Treasury | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Debt securities, face amount of purchased securities | $ 0 | $ 1,000 | |||
Term of treasury bills | 6 months |
REAL ESTATE AND OTHER SECURIT_7
REAL ESTATE AND OTHER SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) security | |
Debt Securities, Available-for-sale [Line Items] | |
Outstanding Face Amount | $ 25,859,938 |
Weighted Average Life (Years) | 1 year |
Less than 12 Months | |
Debt Securities, Available-for-sale [Line Items] | |
Outstanding Face Amount | $ 79,960 |
Before Credit Impairment - Amortized Cost Basis | 69,392 |
Credit Impairment - Amortized Cost Basis | 0 |
After Credit Impairment - Amortized Cost Basis | 69,392 |
Gross Unrealized Losses - Less than 12 Months | (6,770) |
Carrying Value - Less than 12 Months | $ 62,622 |
Number of Securities - Less than 12 Months | security | 72 |
Weighted Average Coupon | 3.10% |
Weighted Average Yield | 4% |
Weighted Average Life (Years) | 4 years 8 months 12 days |
12 or More Months | |
Debt Securities, Available-for-sale [Line Items] | |
Outstanding Face Amount | $ 306,044 |
Before Credit Impairment - Amortized Cost Basis | 288,367 |
Credit Impairment - Amortized Cost Basis | (14,421) |
After Credit Impairment - Amortized Cost Basis | 273,946 |
Gross Unrealized Losses - 12 or More Months | (26,153) |
Carrying Value - 12 or More Months | $ 247,793 |
Number of Securities - 12 or More Months | security | 130 |
Weighted Average Coupon | 3.70% |
Weighted Average Yield | 3.70% |
Weighted Average Life (Years) | 7 years 2 months 12 days |
Total/Weighted Average | |
Debt Securities, Available-for-sale [Line Items] | |
Outstanding Face Amount | $ 386,004 |
Before Credit Impairment - Amortized Cost Basis | 357,759 |
Credit Impairment - Amortized Cost Basis | (14,421) |
After Credit Impairment - Amortized Cost Basis | 343,338 |
Gross Unrealized Losses - Total | (32,923) |
Carrying Value - Total | $ 310,415 |
Number of Securities - Total | security | 202 |
Weighted Average Coupon | 3.60% |
Weighted Average Yield | 3.80% |
Weighted Average Life (Years) | 6 years 8 months 12 days |
REAL ESTATE AND OTHER SECURIT_8
REAL ESTATE AND OTHER SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position - Associated Intent to Sell (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Securities Rithm Capital intends to sell | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 0 | $ 0 |
Amortized Cost Basis After Credit Impairment | 0 | 0 |
Gross Unrealized Losses, Credit | 0 | 0 |
Gross Unrealized Losses, Non-Credit | 0 | 0 |
Securities Rithm Capital is more likely than not to be required to sell | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 0 |
Amortized Cost Basis After Credit Impairment | 0 | 0 |
Gross Unrealized Losses, Credit | 0 | 0 |
Gross Unrealized Losses, Non-Credit | 0 | 0 |
Credit impaired securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 69,456 | 77,843 |
Amortized Cost Basis After Credit Impairment | 69,833 | 78,101 |
Gross Unrealized Losses, Credit | (14,421) | (10,816) |
Gross Unrealized Losses, Non-Credit | (376) | (258) |
Non-credit impaired securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 240,959 | 271,405 |
Amortized Cost Basis After Credit Impairment | 273,505 | 304,831 |
Gross Unrealized Losses, Credit | 0 | 0 |
Gross Unrealized Losses, Non-Credit | (32,547) | (33,426) |
Total debt securities in an unrealized loss position | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 310,415 | 349,248 |
Amortized Cost Basis After Credit Impairment | 343,338 | 382,932 |
Gross Unrealized Losses, Credit | (14,421) | (10,816) |
Gross Unrealized Losses, Non-Credit | $ (32,923) | $ (33,684) |
REAL ESTATE AND OTHER SECURIT_9
REAL ESTATE AND OTHER SECURITIES - Summary of Activity Related to Credit Losses on Debt Securities (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses on available-for-sale debt securities at December 31, 2022 | $ 10,816 |
Additions to the allowance for credit losses on securities for which credit losses were not previously recorded | 0 |
Additions to the allowance for credit losses arising from purchases of available-for-sale debt securities accounted for as purchased financial assets with credit deterioration | 0 |
Reductions for securities sold during the period | (221) |
Reductions in the allowance for credit losses because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis | 0 |
Additional increases (decreases) to the allowance for credit losses on securities that had credit losses, or an allowance recorded in a previous period | 3,826 |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Allowance for credit losses on available-for-sale debt securities at September 30, 2023 | 14,421 |
Purchased Credit Deteriorated | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses on available-for-sale debt securities at December 31, 2022 | 4,140 |
Additions to the allowance for credit losses on securities for which credit losses were not previously recorded | 0 |
Additions to the allowance for credit losses arising from purchases of available-for-sale debt securities accounted for as purchased financial assets with credit deterioration | 0 |
Reductions for securities sold during the period | (221) |
Reductions in the allowance for credit losses because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis | 0 |
Additional increases (decreases) to the allowance for credit losses on securities that had credit losses, or an allowance recorded in a previous period | (158) |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Allowance for credit losses on available-for-sale debt securities at September 30, 2023 | 3,761 |
Non-Purchased Credit Deteriorated | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses on available-for-sale debt securities at December 31, 2022 | 6,676 |
Additions to the allowance for credit losses on securities for which credit losses were not previously recorded | 0 |
Additions to the allowance for credit losses arising from purchases of available-for-sale debt securities accounted for as purchased financial assets with credit deterioration | 0 |
Reductions for securities sold during the period | 0 |
Reductions in the allowance for credit losses because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis | 0 |
Additional increases (decreases) to the allowance for credit losses on securities that had credit losses, or an allowance recorded in a previous period | 3,984 |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Allowance for credit losses on available-for-sale debt securities at September 30, 2023 | $ 10,660 |
RESIDENTIAL MORTGAGE LOANS - Re
RESIDENTIAL MORTGAGE LOANS - Residential Mortgage Loans Outstanding by Loan Type, Excluding REO (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) loan | Dec. 31, 2022 USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Weighted Average Life (Years) | 1 year | |
Residential mortgage loans held-for-investment, at fair value | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 462,187 | |
Carrying Value | $ 370,957 | $ 452,519 |
Loan Count | loan | 8,610 | |
Weighted Average Yield | 8.90% | |
Weighted Average Life (Years) | 4 years 6 months | |
Total residential mortgage loans, held-for-sale, at lower of cost or market | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 96,395 | |
Carrying Value | $ 78,683 | 101,027 |
Loan Count | loan | 2,271 | |
Weighted Average Yield | 9% | |
Weighted Average Life (Years) | 4 years 3 months 18 days | |
Acquired performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 69,353 | |
Carrying Value | $ 57,229 | 72,425 |
Loan Count | loan | 1,947 | |
Weighted Average Yield | 8.90% | |
Weighted Average Life (Years) | 4 years 8 months 12 days | |
Acquired performing loans | Ginnie Mae | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | $ 252,100 | |
Acquired non-performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | 27,042 | |
Carrying Value | $ 21,454 | 28,602 |
Loan Count | loan | 324 | |
Weighted Average Yield | 9.30% | |
Weighted Average Life (Years) | 3 years 2 months 12 days | |
Acquired non-performing loans | Ginnie Mae | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | $ 186,700 | |
Total residential mortgage loans, held-for-sale, at fair value | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | 2,787,891 | |
Carrying Value | $ 2,740,599 | 3,297,271 |
Loan Count | loan | 10,068 | |
Weighted Average Yield | 6.70% | |
Weighted Average Life (Years) | 23 years | |
Acquired performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 997,217 | |
Carrying Value | $ 963,554 | 890,131 |
Loan Count | loan | 3,374 | |
Weighted Average Yield | 6.80% | |
Weighted Average Life (Years) | 13 years 1 month 6 days | |
Acquired non-performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 211,662 | |
Carrying Value | $ 191,078 | 340,342 |
Loan Count | loan | 1,101 | |
Weighted Average Yield | 4.60% | |
Weighted Average Life (Years) | 23 years 9 months 18 days | |
Originated loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 1,579,012 | |
Carrying Value | $ 1,585,967 | 2,066,798 |
Loan Count | loan | 5,593 | |
Weighted Average Yield | 6.90% | |
Weighted Average Life (Years) | 29 years 2 months 12 days | |
Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 2,884,286 | |
Carrying Value | $ 2,819,282 | $ 3,398,298 |
RESIDENTIAL MORTGAGE LOANS - Ge
RESIDENTIAL MORTGAGE LOANS - Geographic Distribution of the Underlying Residential Mortgage Loans (Details) - Residential Mortgage Loans | Sep. 30, 2023 | Dec. 31, 2022 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 100% | 100% |
Florida | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 11.40% | 10.90% |
California | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 9.30% | 10.20% |
New York | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 8.50% | 6.80% |
Texas | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 8% | 8.90% |
Georgia | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.10% | 4.20% |
New Jersey | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.80% | 3.80% |
Illinois | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.60% | 3.60% |
Indiana | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.20% | 3.20% |
Maryland | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.20% | 3.10% |
Pennsylvania | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 2.80% | 2.70% |
Other U.S. | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 42.10% | 42.60% |
RESIDENTIAL MORTGAGE LOANS - Sc
RESIDENTIAL MORTGAGE LOANS - Schedule of Aggregate Unpaid Principal Balance and Aggregate Carrying Value (Details) - 90+ - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | $ 0 | $ 0 |
Carrying Value | 0 | 0 |
Carrying Value Over (Under) UPB | 0 | 0 |
Residential Mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 305,579 | 468,147 |
Carrying Value | 266,341 | 423,321 |
Carrying Value Over (Under) UPB | $ (39,237) | $ (44,826) |
RESIDENTIAL MORTGAGE LOANS - Ca
RESIDENTIAL MORTGAGE LOANS - Carrying Value of Mortgage Loans (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |
Balance, beginning | $ 3,398,298 |
Balance, ending | 2,819,282 |
Residential Portfolio Segment | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |
Balance, beginning | 3,850,817 |
Originations | 28,097,716 |
Sales | (28,802,541) |
Purchases/additional fundings | 242,330 |
Proceeds from repayments | (194,163) |
Transfer of loans to other assets | 7,248 |
Transfer of loans to real estate owned | (10,761) |
Transfers of loans to held-for-sale | (30,556) |
Transfer of loans from held-for-investment | 30,556 |
Valuation (provision) reversal on loans | (3,939) |
Changes in instrument-specific credit risk | 13,309 |
Other factors | (9,777) |
Balance, ending | 3,190,239 |
Loans Held-for-Investment, at Fair Value | Residential Portfolio Segment | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |
Balance, beginning | 452,519 |
Originations | 0 |
Sales | 0 |
Purchases/additional fundings | 1,269 |
Proceeds from repayments | (38,988) |
Transfer of loans to other assets | 0 |
Transfer of loans to real estate owned | (6,127) |
Transfers of loans to held-for-sale | (30,556) |
Transfer of loans from held-for-investment | 0 |
Valuation (provision) reversal on loans | 0 |
Changes in instrument-specific credit risk | 4,000 |
Other factors | (11,160) |
Balance, ending | 370,957 |
Residential Mortgage Loans, Held-for-Sale | Residential Portfolio Segment | Loans held-for-sale, at lower of cost or fair value | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |
Balance, beginning | 101,027 |
Originations | 0 |
Sales | (6,946) |
Purchases/additional fundings | 0 |
Proceeds from repayments | (8,289) |
Transfer of loans to other assets | 0 |
Transfer of loans to real estate owned | (3,170) |
Transfers of loans to held-for-sale | 0 |
Transfer of loans from held-for-investment | 0 |
Valuation (provision) reversal on loans | (3,939) |
Changes in instrument-specific credit risk | 0 |
Other factors | 0 |
Balance, ending | 78,683 |
Residential Mortgage Loans, Held-for-Sale | Residential Portfolio Segment | Loans Held-for-Sale, at Fair Value | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |
Balance, beginning | 3,297,271 |
Originations | 28,097,716 |
Sales | (28,795,595) |
Purchases/additional fundings | 241,061 |
Proceeds from repayments | (146,886) |
Transfer of loans to other assets | 7,248 |
Transfer of loans to real estate owned | (1,464) |
Transfers of loans to held-for-sale | 0 |
Transfer of loans from held-for-investment | 30,556 |
Valuation (provision) reversal on loans | 0 |
Changes in instrument-specific credit risk | 9,309 |
Other factors | 1,383 |
Balance, ending | $ 2,740,599 |
RESIDENTIAL MORTGAGE LOANS - _2
RESIDENTIAL MORTGAGE LOANS - Schedule of Net Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest income: | ||||
Loans held-for-investment, at fair value | $ 8,009 | $ 11,550 | $ 26,732 | $ 32,298 |
Total interest income | 53,090 | 61,048 | 154,232 | 212,263 |
Interest expense: | ||||
Loans held-for-investment, at fair value | 4,823 | 3,793 | 14,342 | 9,955 |
Total interest expense | 50,211 | 52,587 | 147,122 | 141,800 |
Net interest income | 2,879 | 8,461 | 7,110 | 70,463 |
Loans held-for-sale, at lower of cost or fair value | ||||
Interest income: | ||||
Loans held-for-sale | 1,206 | 1,613 | 4,594 | 5,429 |
Interest expense: | ||||
Loans held-for-sale | 857 | 841 | 2,746 | 2,513 |
Loans held-for-sale, at fair value | ||||
Interest income: | ||||
Loans held-for-sale | 43,875 | 47,885 | 122,906 | 174,536 |
Interest expense: | ||||
Loans held-for-sale | $ 44,531 | $ 47,953 | $ 130,034 | $ 129,332 |
RESIDENTIAL MORTGAGE LOANS - Ga
RESIDENTIAL MORTGAGE LOANS - Gain On Sale of Originated Mortgage Loans, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Long Lived Assets Held-for-sale [Line Items] | ||||
Gain (loss) on residential mortgage loans originated and sold, net | $ (178,658) | $ (141,327) | $ (332,793) | $ (933,582) |
Gain (loss) on settlement of residential mortgage loan origination derivative instruments | 67,377 | 57,407 | 65,798 | 1,109,163 |
MSRs retained on transfer of residential mortgage loans | 266,644 | 268,613 | 609,460 | 1,059,535 |
Other | 5,892 | 2,763 | 2,751 | 32,302 |
Realized gain on sale of originated residential mortgage loans, net | 161,255 | 187,456 | 345,216 | 1,267,418 |
Change in fair value of derivative instruments | 7,274 | 129,233 | 24,914 | 96,017 |
Gain on originated residential mortgage loans, held-for-sale, net | 149,230 | 203,479 | 410,320 | 980,266 |
Loan origination fees and direct loan origination costs | 105,900 | 156,800 | 268,800 | 526,100 |
Change in fair value of interest rate lock commitments | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Change in fair value of derivative instruments | (8,630) | (104,440) | (2,288) | (154,644) |
Change in fair value of derivative instruments | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Change in fair value of derivative instruments | 15,904 | 233,673 | 27,202 | 250,661 |
Change in fair value of residential mortgage loans | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Change in fair value of residential mortgage loans | $ (19,299) | $ (113,210) | $ 40,190 | $ (383,169) |
CONSUMER LOANS - Narrative (Det
CONSUMER LOANS - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Consumer Loan SPVs | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 53.50% |
CONSUMER LOANS - Consumer Loan
CONSUMER LOANS - Consumer Loan Investments made through Equity Method Investees (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||
Weighted Average Expected Life (Years) | 1 year | |
Consumer Portfolio Segment | ||
Schedule of Equity Method Investments [Line Items] | ||
Unpaid Principal Balance | $ 1,475,494 | $ 330,428 |
Carrying Value | $ 1,436,080 | $ 363,756 |
Weighted Average Coupon | 12.40% | 17.80% |
Weighted Average Expected Life (Years) | 1 year 8 months 12 days | 3 years 4 months 24 days |
Consumer Portfolio Segment | SpringCastle | ||
Schedule of Equity Method Investments [Line Items] | ||
Unpaid Principal Balance | $ 275,053 | $ 330,428 |
Carrying Value | $ 303,881 | $ 363,756 |
Weighted Average Coupon | 18.20% | 17.80% |
Weighted Average Expected Life (Years) | 3 years 7 months 6 days | 3 years 4 months 24 days |
Consumer Portfolio Segment | Marcus | ||
Schedule of Equity Method Investments [Line Items] | ||
Unpaid Principal Balance | $ 1,200,441 | $ 0 |
Carrying Value | $ 1,132,199 | $ 0 |
Weighted Average Coupon | 11.10% | 0% |
Weighted Average Expected Life (Years) | 1 year 3 months 18 days |
CONSUMER LOANS - Schedule of Ag
CONSUMER LOANS - Schedule of Aggregate Unpaid Principal Balance and Aggregate Carrying Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
90+ | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | $ 0 | $ 0 |
Carrying Value | 0 | 0 |
Carrying Value Over (Under) UPB | 0 | 0 |
Consumer Portfolio Segment | Current | SpringCastle | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 270,509 | 325,192 |
Carrying Value | 298,905 | 358,057 |
Carrying Value Over (Under) UPB | 28,396 | 32,865 |
Consumer Portfolio Segment | Current | Marcus | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 1,193,531 | 0 |
Carrying Value | 1,125,682 | 0 |
Carrying Value Over (Under) UPB | (67,849) | 0 |
Consumer Portfolio Segment | 90+ | SpringCastle | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 4,544 | 5,236 |
Carrying Value | 4,976 | 5,699 |
Carrying Value Over (Under) UPB | 432 | 463 |
Consumer Portfolio Segment | 90+ | Marcus | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 6,910 | 0 |
Carrying Value | 6,517 | 0 |
Carrying Value Over (Under) UPB | (393) | 0 |
Consumer Portfolio Segment | Past Due | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 1,475,494 | 330,428 |
Carrying Value | 1,436,080 | 363,756 |
Carrying Value Over (Under) UPB | (39,414) | 33,328 |
Consumer Portfolio Segment | Past Due | SpringCastle | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 275,053 | 330,428 |
Carrying Value | 303,881 | 363,756 |
Carrying Value Over (Under) UPB | 28,828 | 33,328 |
Consumer Portfolio Segment | Past Due | Marcus | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 1,200,441 | 0 |
Carrying Value | 1,132,199 | 0 |
Carrying Value Over (Under) UPB | $ (68,242) | $ 0 |
CONSUMER LOANS - Carrying Value
CONSUMER LOANS - Carrying Value of Performing Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Loans Receivable [Roll Forward] | ||
Proceeds from repayments | $ (35,064) | $ (69,020) |
Accretion of loan discount and premium amortization, net | 85,063 | $ 45,230 |
Changes in instrument-specific credit risk | 0 | |
Other factors | 231 | |
Consumer Portfolio Segment | Performing loans | ||
Loans Receivable [Roll Forward] | ||
Beginning balance | 363,756 | |
Purchases | 1,317,347 | |
Additional fundings | 20,675 | |
Proceeds from repayments | (272,955) | |
Accretion of loan discount and premium amortization, net | 21,281 | |
Changes in instrument-specific credit risk | 3,945 | |
Other factors | (17,969) | |
Ending balance | 1,436,080 | |
Consumer Portfolio Segment | Performing loans | SpringCastle | ||
Loans Receivable [Roll Forward] | ||
Beginning balance | 363,756 | |
Purchases | 0 | |
Additional fundings | 20,675 | |
Proceeds from repayments | (75,681) | |
Accretion of loan discount and premium amortization, net | 7,178 | |
Changes in instrument-specific credit risk | 3,945 | |
Other factors | (15,992) | |
Ending balance | 303,881 | |
Consumer Portfolio Segment | Performing loans | Marcus | ||
Loans Receivable [Roll Forward] | ||
Beginning balance | 0 | |
Purchases | 1,317,347 | |
Additional fundings | 0 | |
Proceeds from repayments | (197,274) | |
Accretion of loan discount and premium amortization, net | 14,103 | |
Changes in instrument-specific credit risk | 0 | |
Other factors | (1,977) | |
Ending balance | $ 1,132,199 |
SINGLE-FAMILY RENTAL PROPERTI_3
SINGLE-FAMILY RENTAL PROPERTIES - Net Carrying Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Real Estate [Line Items] | ||
Investment in SFR properties, net | $ 991,948 | $ 971,313 |
Single Family | ||
Real Estate [Line Items] | ||
Land | 180,782 | 175,607 |
Building | 723,129 | 702,427 |
Capital improvements | 134,631 | 118,999 |
Total gross investment in SFR properties | 1,038,542 | 997,033 |
Accumulated depreciation | (46,594) | (25,720) |
Investment in SFR properties, net | $ 991,948 | $ 971,313 |
SINGLE-FAMILY RENTAL PROPERTI_4
SINGLE-FAMILY RENTAL PROPERTIES - Narrative (Details) $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) security | Sep. 30, 2023 USD ($) property | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Real Estate [Line Items] | |||||
Capitalized acquisition costs | $ 7,500 | $ 7,500 | $ 7,500 | $ 7,700 | |
Single Family | |||||
Real Estate [Line Items] | |||||
Accumulated depreciation | $ 20,980 | $ 12,400 | |||
Transfer to held-for-sale | 30 | 0 | |||
Single Family | Minimum | |||||
Real Estate [Line Items] | |||||
Lease term | 1 year | 1 year | 1 year | ||
Single Family | Maximum | |||||
Real Estate [Line Items] | |||||
Lease term | 2 years | 2 years | 2 years |
SINGLE-FAMILY RENTAL PROPERTI_5
SINGLE-FAMILY RENTAL PROPERTIES - Activity in Single-Family Rental Properties (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | $ 971,313 | |
Ending balance | 991,948 | |
SFR Properties Held-for-Investment | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 971,313 | |
Acquisitions and capital improvements | 48,563 | |
Transfer to held-for-sale | (9,747) | |
Dispositions | (250) | |
Accumulated depreciation | (20,861) | |
Ending balance | 989,018 | |
SFR Properties Held-for-Sale | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 0 | |
Acquisitions and capital improvements | 0 | |
Transfer to held-for-sale | 9,747 | |
Dispositions | (6,698) | |
Accumulated depreciation | (119) | |
Ending balance | 2,930 | |
Single Family | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 971,313 | |
Acquisitions and capital improvements | 48,563 | |
Transfer to held-for-sale | 0 | |
Dispositions | (6,948) | |
Accumulated depreciation | (20,980) | $ (12,400) |
Ending balance | $ 991,948 |
SINGLE-FAMILY RENTAL PROPERTI_6
SINGLE-FAMILY RENTAL PROPERTIES - Revenue to be Received (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Real Estate [Line Items] | |
Total | $ 7,200 |
Single Family | |
Real Estate [Line Items] | |
Remainder of 2023 | 17,917 |
2024 and thereafter | 33,291 |
Total | $ 51,208 |
SINGLE-FAMILY RENTAL PROPERTI_7
SINGLE-FAMILY RENTAL PROPERTIES - Activity in Single-Family Rental Portfolio by Units (Details) - 9 months ended Sep. 30, 2023 | security | property |
SFR Properties Held-for-Investment | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 3,731 | |
Acquisition of SFR units | 129 | |
Transfer to held-for-sale | 30 | |
Disposition of SFR units | (1) | |
Ending balance | 3,829 | |
SFR Properties Held-for-Sale | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 0 | |
Acquisition of SFR units | 0 | |
Transfer to held-for-sale | 30 | |
Disposition of SFR units | (20) | |
Ending balance | 10 | |
Single Family | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 3,731 | |
Acquisition of SFR units | 129 | |
Transfer to held-for-sale | 30 | 0 |
Disposition of SFR units | (21) | |
Ending balance | 3,839 |
MORTGAGE LOANS RECEIVABLE - Nar
MORTGAGE LOANS RECEIVABLE - Narrative (Details) $ in Millions | Aug. 24, 2023 USD ($) |
Bridge | Mortgage Loans Receivable | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing receivable, before allowance for credit loss, acquired | $ 148.4 |
MORTGAGE LOANS RECEIVABLE - Sum
MORTGAGE LOANS RECEIVABLE - Summary of Mortgage Loans Receivable By Purpose (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) loan | Dec. 31, 2022 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 63,359 | $ 94,401 |
Mortgage Loans Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 2,135,424 | $ 2,064,028 |
% of Portfolio | 100% | |
Loan Count | loan | 1,404 | |
% of Portfolio | 100% | |
Weighted Average Yield | 9.60% | |
Weighted Average Original Life (Months) | 19 years 8 months 12 days | |
Mortgage Loans Receivable | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 947,754 | |
% of Portfolio | 44.30% | |
Loan Count | loan | 422 | |
% of Portfolio | 30% | |
Weighted Average Yield | 9.80% | |
Weighted Average Original Life (Months) | 16 years 1 month 6 days | |
Weighted Average Committed Loan Balance to Value, LTC | 75% | |
Weighted Average Committed Loan Balance to Value, LTARV | 63.30% | |
Mortgage Loans Receivable | Bridge | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 925,859 | |
% of Portfolio | 43.40% | |
Loan Count | loan | 682 | |
% of Portfolio | 48.60% | |
Weighted Average Yield | 9.30% | |
Weighted Average Original Life (Months) | 25 years 1 month 6 days | |
Weighted Average Committed Loan Balance to Value | 69.90% | |
Mortgage Loans Receivable | Renovation | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 261,811 | |
% of Portfolio | 12.30% | |
Loan Count | loan | 300 | |
% of Portfolio | 21.40% | |
Weighted Average Yield | 9.90% | |
Weighted Average Original Life (Months) | 14 years | |
Weighted Average Committed Loan Balance to Value, LTC | 79.40% | |
Weighted Average Committed Loan Balance to Value, LTARV | 68.20% |
MORTGAGE LOANS RECEIVABLE - Sch
MORTGAGE LOANS RECEIVABLE - Schedule of Mortgage Loans Receivable (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Financing Receivable [Roll Forward] | |
Beginning balance | $ 94,401 |
Paydowns and payoffs | (70,695) |
Ending balance | 63,359 |
Mortgage Loans Receivable | |
Financing Receivable [Roll Forward] | |
Beginning balance | 2,064,028 |
Purchases | 146,631 |
Initial loan advances | 975,677 |
Construction holdbacks and draws | 491,370 |
Paydowns and payoffs | (1,542,459) |
Purchased loans discount amortization | 177 |
Ending balance | $ 2,135,424 |
MORTGAGE LOANS RECEIVABLE - Pas
MORTGAGE LOANS RECEIVABLE - Past Due Mortgage Loans Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
90+ | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | $ 0 | $ 0 |
Carrying Value | 0 | 0 |
Carrying Value Over (Under) UPB | 0 | 0 |
Mortgage Loans Receivable | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 2,105,989 | 2,064,028 |
Carrying Value | 2,104,383 | 2,064,028 |
Carrying Value Over (Under) UPB | (1,606) | 0 |
Mortgage Loans Receivable | 90+ | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 31,045 | 0 |
Carrying Value | 31,041 | 0 |
Carrying Value Over (Under) UPB | $ (4) | $ 0 |
MORTGAGE LOANS RECEIVABLE - S_2
MORTGAGE LOANS RECEIVABLE - Summary of the Geographic Distribution of Mortgage Loans Receivable (Details) - Mortgage Loans Receivable - Geographic Concentration Risk - Loan Origination Commitments | 9 Months Ended |
Sep. 30, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 100% |
California | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 49.20% |
Washington | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 8.70% |
New York | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 7% |
Colorado | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 5.60% |
Florida | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 5.20% |
Arizona | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 4.20% |
Virginia | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 3.80% |
North Carolina | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 2.50% |
Illinois | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 2.40% |
Texas | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 2.30% |
Other U.S. | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Total Loan Commitment | 9.10% |
CASH, CASH EQUIVALENTS AND RE_3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |||||
Cash and cash equivalents | [1] | $ 1,217,283 | $ 1,336,508 | ||
Restricted cash | [1] | 368,447 | 281,126 | ||
Total cash, cash equivalents and restricted cash | $ 1,585,730 | $ 1,617,634 | $ 1,949,575 | $ 1,528,442 | |
[1]The Company's Consolidated Balance Sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations and liabilities of the VIE for which creditors do not have recourse to the primary beneficiary (Rithm Capital). As of September 30, 2023 and December 31, 2022, total assets of consolidated VIEs were $2.2 billion and $2.3 billion, respectively, and total liabilities of consolidated VIEs were $1.8 billion and $1.8 billion, respectively. See Note 20 for further details. |
CASH, CASH EQUIVALENTS AND RE_4
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | [1] | $ 368,447 | $ 281,126 |
MSRs and servicer advances | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | 119,150 | 69,347 | |
Real estate and other securities | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | 3,543 | 4,604 | |
Consumer loans | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | 19,703 | 15,930 | |
SFR properties | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | 14,501 | 4,627 | |
Origination and servicing | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | 165,796 | 161,249 | |
Mortgage loans receivable | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | $ 45,754 | $ 25,369 | |
[1]The Company's Consolidated Balance Sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations and liabilities of the VIE for which creditors do not have recourse to the primary beneficiary (Rithm Capital). As of September 30, 2023 and December 31, 2022, total assets of consolidated VIEs were $2.2 billion and $2.3 billion, respectively, and total liabilities of consolidated VIEs were $1.8 billion and $1.8 billion, respectively. See Note 20 for further details. |
OTHER ASSETS AND LIABILITIES -
OTHER ASSETS AND LIABILITIES - Schedule of Other Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Other Assets | |||
Margin receivable, net | $ 569,081 | $ 20,614 | |
Excess MSRs, at fair value (Note 4) | 282,976 | 321,803 | |
Servicer advance investments, at fair value (Note 6) | 387,669 | 398,820 | |
Servicing fee receivables | 125,381 | 128,438 | |
Principal and interest receivable | 164,558 | 106,608 | |
Carrying value of Rithm’s investments in unconsolidated commercial real estate VIEs | 67,819 | 71,388 | |
Other receivables | 159,142 | 146,131 | |
REO | 17,824 | 19,379 | |
Goodwill | 85,199 | 85,199 | |
Notes receivable, at fair value | 33,250 | 0 | |
Warrants, at fair value | 18,854 | 19,346 | |
Property and equipment | 26,840 | 37,883 | |
Intangible assets (Note 15) | 123,245 | 141,413 | |
Prepaid expenses | 35,398 | 60,817 | |
Operating lease right-of-use assets (Note 16) | 77,522 | 77,329 | |
Derivative assets (Note 17) | 63,532 | 52,229 | |
Loans receivable, at fair value | 30,109 | 94,401 | |
Other assets | 151,469 | 132,809 | |
Other assets | [1] | 2,419,868 | 1,914,607 |
Accrued Expenses and Other Liabilities | |||
Margin payable | 31,392 | 4,852 | |
Interest payable | 215,276 | 87,700 | |
Accounts payable | 177,969 | 155,492 | |
Derivative liabilities (Note 17) | 9,639 | 18,064 | |
Accrued compensation and benefits | 110,834 | 112,762 | |
Operating lease liabilities (Note 16) | 101,478 | 101,225 | |
Deferred tax liability | 798,179 | 711,855 | |
Other liabilities | 337,548 | 294,717 | |
Accrued expenses and other liabilities | [1] | $ 1,782,315 | $ 1,486,667 |
[1]The Company's Consolidated Balance Sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations and liabilities of the VIE for which creditors do not have recourse to the primary beneficiary (Rithm Capital). As of September 30, 2023 and December 31, 2022, total assets of consolidated VIEs were $2.2 billion and $2.3 billion, respectively, and total liabilities of consolidated VIEs were $1.8 billion and $1.8 billion, respectively. See Note 20 for further details. |
OTHER ASSETS AND LIABILITIES _2
OTHER ASSETS AND LIABILITIES - Real Estate Owned (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Real Estate Owned [Roll Forward] | |
Beginning balance | $ 19,379 |
Property received in satisfaction of loan | 21,135 |
Sales | (23,822) |
Valuation (provision) reversal | 1,132 |
Ending balance | 17,824 |
Residential Mortgage Loans | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Unpaid principal balance | 61,400 |
Mortgage Receivable | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Unpaid principal balance | $ 19,300 |
OTHER ASSETS AND LIABILITIES _3
OTHER ASSETS AND LIABILITIES - Schedule of Notes and Loans Receivable (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Financing Receivable [Roll Forward] | |
Beginning balance | $ 94,401 |
Fundings | 35,000 |
Payment in Kind | 4,422 |
Proceeds from repayments | (70,695) |
Changes in instrument-specific credit risk | 0 |
Other factors | 231 |
Ending balance | 63,359 |
Notes Receivable | |
Financing Receivable [Roll Forward] | |
Beginning balance | 0 |
Fundings | 35,000 |
Payment in Kind | 0 |
Proceeds from repayments | (1,750) |
Changes in instrument-specific credit risk | 0 |
Other factors | 0 |
Ending balance | 33,250 |
Loans Receivable | |
Financing Receivable [Roll Forward] | |
Beginning balance | 94,401 |
Fundings | 0 |
Payment in Kind | 4,422 |
Proceeds from repayments | (68,945) |
Changes in instrument-specific credit risk | 0 |
Other factors | 231 |
Ending balance | $ 30,109 |
OTHER ASSETS AND LIABILITIES _4
OTHER ASSETS AND LIABILITIES - Past Due Notes and Loans Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
UPB | $ 133,191 | $ 157,745 |
Carrying Value | 63,359 | 94,401 |
Carrying Value Over (Under) UPB | (69,832) | (63,344) |
90+ | ||
Financing Receivable, Past Due [Line Items] | ||
UPB | 0 | 0 |
Carrying Value | 0 | 0 |
Carrying Value Over (Under) UPB | $ 0 | $ 0 |
EXPENSES, REALIZED AND UNREAL_3
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND OTHER - Schedule of General and Administrative Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Legal and professional | $ 35,348 | $ 16,310 | $ 65,447 | $ 65,718 |
Loan origination | 11,929 | 16,991 | 33,280 | 91,907 |
Occupancy | 13,004 | 29,916 | 40,981 | 88,579 |
Subservicing | 31,483 | 37,899 | 109,370 | 126,694 |
Loan servicing | 5,381 | 3,371 | 10,878 | 13,541 |
Property and maintenance | 25,480 | 24,698 | 73,450 | 70,409 |
Other | 67,850 | 85,439 | 205,732 | 229,285 |
Total general and administrative expenses | $ 190,475 | $ 214,624 | $ 539,138 | $ 686,133 |
EXPENSES, REALIZED AND UNREAL_4
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND OTHER - Schedule of Components of Other Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Real estate and other securities | $ (315,612) | $ (463,607) | $ (354,339) | $ (1,590,625) |
Residential mortgage loans and REO | (12,437) | (35,310) | (4,463) | (166,927) |
Derivative instruments | 194,593 | 464,618 | 259,539 | 1,503,183 |
Other | 5,948 | 181 | (14,469) | (2,287) |
Realized and unrealized gains (losses) on investments, net | (127,508) | (34,118) | (113,732) | (256,656) |
Unrealized gain (loss) on secured notes and bonds payable | 3,840 | 15,128 | 5,889 | 50,279 |
Rental revenue | 18,297 | 16,937 | 54,163 | 37,339 |
Property and maintenance revenue | 33,953 | 34,520 | 100,707 | 100,860 |
(Provision) reversal for credit losses on securities | (2,798) | (2,812) | (3,605) | (5,697) |
Valuation and credit loss (provision) reversal on loans and real estate owned | (647) | (3,932) | (2,849) | (8,575) |
Other income (loss) | 18,402 | (36,599) | (36,920) | (39,244) |
Other income (loss), net | 71,047 | 23,242 | 117,385 | 134,962 |
Total other income (loss) | $ (56,461) | $ (10,876) | $ 3,653 | $ (121,694) |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Carrying Value of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 85,199 |
Goodwill acquired | 0 |
Accumulated impairment loss | 0 |
Ending balance | 85,199 |
Origination | |
Goodwill [Roll Forward] | |
Beginning balance | 11,836 |
Goodwill acquired | 0 |
Accumulated impairment loss | 0 |
Ending balance | 11,836 |
Servicing | |
Goodwill [Roll Forward] | |
Beginning balance | 12,540 |
Goodwill acquired | 0 |
Accumulated impairment loss | 0 |
Ending balance | 12,540 |
MSR Related Investments | |
Goodwill [Roll Forward] | |
Beginning balance | 5,092 |
Goodwill acquired | 0 |
Accumulated impairment loss | 0 |
Ending balance | 5,092 |
Mortgage Loans Receivable | |
Goodwill [Roll Forward] | |
Beginning balance | 55,731 |
Goodwill acquired | 0 |
Accumulated impairment loss | 0 |
Ending balance | $ 55,731 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 206,130 | $ 188,995 |
Accumulated Amortization | 82,885 | 47,582 |
Intangible Assets, Net | 123,245 | 141,413 |
Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 21,400 | 21,400 |
Trademarks / Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 1,900 | 1,900 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 57,949 | 57,949 |
Accumulated Amortization | 16,739 | 12,960 |
Intangible Assets, Net | $ 41,210 | 44,989 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 3 years | |
Customer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 9 years | |
Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 137,922 | 120,787 |
Accumulated Amortization | 61,598 | 30,959 |
Intangible Assets, Net | $ 76,324 | 89,828 |
Purchased technology | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 3 years | |
Purchased technology | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 7 years | |
Trademarks / Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 10,259 | 10,259 |
Accumulated Amortization | 4,548 | 3,663 |
Intangible Assets, Net | $ 5,711 | $ 6,596 |
Trademarks / Trade names | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 1 year | |
Trademarks / Trade names | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 5 years |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Amortization Expense (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
October 1 through December 31, 2023 | $ 7,566 |
2024 | 27,675 |
2025 | 25,592 |
2026 | 17,357 |
2027 and thereafter | 21,814 |
Intangible assets, net | $ 100,004 |
OPERATING LEASES - Narrative (D
OPERATING LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Leases [Abstract] | |||||
Rent expense, net of sublease income | $ 11 | $ 11.5 | $ 34.1 | $ 35.3 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets | Prepaid Expense and Other Assets | Prepaid Expense and Other Assets | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | Accrued expenses and other liabilities | Accrued expenses and other liabilities | ||
Sublease rentals | $ 7.2 | $ 7.2 |
OPERATING LEASES - Future Commi
OPERATING LEASES - Future Commitments for Non-Cancelable Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
October 1 through December 31, 2023 | $ 7,325 | |
2024 | 25,967 | |
2025 | 21,099 | |
2026 | 13,715 | |
2027 | 11,257 | |
2028 and thereafter | 37,630 | |
Total remaining undiscounted lease payments | 116,993 | |
Less: imputed interest | 15,515 | |
Total remaining discounted lease payments | $ 101,478 | $ 101,225 |
OPERATING LEASES - Other Inform
OPERATING LEASES - Other Information Related to Operating Leases (Details) | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 6 years 4 months 24 days | 5 years 8 months 12 days |
Weighted-average discount rate | 4.50% | 4% |
DERIVATIVES - Derivatives Recor
DERIVATIVES - Derivatives Recorded at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Derivative assets | $ 63,532 | $ 52,229 |
Derivative liabilities | 9,639 | 18,064 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative assets | 350 | 449 |
Derivative asset, variation margin accounts | 1,100,000 | 1,200,000 |
Interest rate lock commitments | ||
Derivative [Line Items] | ||
Derivative assets | 13,751 | 16,015 |
Derivative liabilities | 7,253 | 7,229 |
TBAs | ||
Derivative [Line Items] | ||
Derivative assets | 49,431 | 35,765 |
Derivative liabilities | 2,386 | 10,835 |
Options on treasury futures | ||
Derivative [Line Items] | ||
Derivative assets | $ 0 | $ 0 |
DERIVATIVES - Derivatives Notio
DERIVATIVES - Derivatives Notional Amount (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 22,565,000 | $ 23,085,000 |
Interest rate swaps | TBAs, short position | ||
Derivative [Line Items] | ||
Notional amount | $ 2,400,000 | $ 0 |
Derivative, cap interest rate | 3.40% | 0% |
Weighted average maturity | 40 months | 0 months |
Interest rate swaps | TBAs, long position | ||
Derivative [Line Items] | ||
Notional amount | $ 20,200,000 | $ 23,100,000 |
Derivative, cap interest rate | 2.50% | 1.90% |
Weighted average maturity | 38 months | 35 months |
Interest rate lock commitments | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 2,704,543 | $ 2,647,747 |
TBAs | TBAs, short position | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | 7,104,300 | 8,473,221 |
TBAs | TBAs, long position | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | $ 0 | $ 31,500 |
DERIVATIVES - Derivatives Gain
DERIVATIVES - Derivatives Gain (Losses) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative [Line Items] | ||||
Servicing revenue, net | $ 0 | $ (18,505,000) | $ 0 | $ (11,316,000) |
Gain on originated residential mortgage loans, held-for-sale, net | 7,274,000 | 129,233,000 | 24,914,000 | 96,017,000 |
Realized and unrealized gains (losses) on investments, net | 194,593,000 | 464,618,000 | 259,539,000 | 1,503,183,000 |
Total gain (loss) | 201,867,000 | 575,346,000 | 284,453,000 | 1,587,884,000 |
Gain (loss) on settlement of residential mortgage loan | 67,377,000 | 57,407,000 | 65,798,000 | 1,109,163,000 |
Servicing Revenue | ||||
Derivative [Line Items] | ||||
Gain (loss) on settlement of derivative instruments | 0 | (2,200,000) | 0 | (79,000,000) |
TBAs | ||||
Derivative [Line Items] | ||||
Servicing revenue, net | 0 | (18,505,000) | 0 | (15,205,000) |
Gain on originated residential mortgage loans, held-for-sale, net | 15,574,000 | 233,673,000 | 28,803,000 | 250,661,000 |
Realized and unrealized gains (losses) on investments, net | 3,066,000 | (651,000) | (3,808,000) | 357,987,000 |
Treasury futures | ||||
Derivative [Line Items] | ||||
Servicing revenue, net | 0 | 0 | 0 | (1,746,000) |
Options on treasury futures | ||||
Derivative [Line Items] | ||||
Servicing revenue, net | 0 | 0 | 0 | 5,635,000 |
Interest rate lock commitments | ||||
Derivative [Line Items] | ||||
Gain on originated residential mortgage loans, held-for-sale, net | (8,630,000) | (104,440,000) | (2,288,000) | (154,644,000) |
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Gain on originated residential mortgage loans, held-for-sale, net | 330,000 | 0 | (1,601,000) | 0 |
Realized and unrealized gains (losses) on investments, net | $ 191,527,000 | $ 465,269,000 | $ 263,347,000 | $ 1,145,196,000 |
DEBT OBLIGATIONS - Schedule of
DEBT OBLIGATIONS - Schedule of Debt Obligations (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 23,677,829,000 | |
Carrying Value | $ 23,570,235,000 | $ 21,356,679,000 |
Weighted Average Funding Cost | 6.40% | |
Weighted Average Life (Years) | 1 year | |
MSR purchase price holdback | $ 215,276,000 | 87,700,000 |
US Treasury Bill Securities | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 974,000,000 | |
Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 13,605,832,000 | |
Carrying Value | $ 13,605,380,000 | 11,257,736,000 |
Weighted Average Funding Cost | 6% | |
Weighted Average Life (Years) | 3 months 18 days | |
MSR purchase price holdback | $ 199,500,000 | |
Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 10,071,997,000 | |
Carrying Value | $ 9,964,855,000 | 10,098,943,000 |
Weighted Average Funding Cost | 6.80% | |
Weighted Average Life (Years) | 1 year 10 months 24 days | |
Warehouse Credit Facilities-Residential Mortgage Loans | Warehouse Credit Facilities | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 2,155,544,000 | |
Carrying Value | $ 2,155,092,000 | 2,601,327,000 |
Weighted Average Funding Cost | 7.30% | |
Weighted Average Life (Years) | 8 months 12 days | |
Repurchase agreements | $ 244,300,000 | |
Interest rate | 5.10% | |
Warehouse Credit Facilities-Residential Mortgage Loans | Warehouse Credit Facilities | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 17 years 9 months 18 days | |
Outstanding Face of Collateral | $ 2,565,299,000 | |
Amortized Cost Basis of Collateral | 2,586,513,000 | |
Carrying Value of Collateral | 2,482,541,000 | |
Warehouse Credit Facilities - Mortgage Loans Receivable | Warehouse Credit Facilities | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 1,212,156,000 | |
Carrying Value | $ 1,212,156,000 | 1,220,662,000 |
Weighted Average Funding Cost | 8.20% | |
Weighted Average Life (Years) | 3 months 18 days | |
Warehouse Credit Facilities - Mortgage Loans Receivable | Warehouse Credit Facilities | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 1 year 1 month 6 days | |
Outstanding Face of Collateral | $ 1,473,515,000 | |
Amortized Cost Basis of Collateral | 1,471,904,000 | |
Carrying Value of Collateral | 1,471,904,000 | |
Agency RMBS or U.S Treasury Bills | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 9,653,355,000 | |
Carrying Value | $ 9,653,355,000 | 6,821,788,000 |
Weighted Average Funding Cost | 5.40% | |
Weighted Average Life (Years) | 2 months 12 days | |
Agency RMBS or U.S Treasury Bills | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 8 years 1 month 6 days | |
Outstanding Face of Collateral | $ 9,731,596,000 | |
Amortized Cost Basis of Collateral | 9,546,319,000 | |
Carrying Value of Collateral | 9,870,841,000 | |
Non-Agency RMBS | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 574,346,000 | |
Carrying Value | $ 574,346,000 | 609,282,000 |
Weighted Average Funding Cost | 7.30% | |
Weighted Average Life (Years) | 9 months 18 days | |
Non-Agency RMBS | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 6 years 2 months 12 days | |
Outstanding Face of Collateral | $ 13,600,138,000 | |
Amortized Cost Basis of Collateral | 882,800,000 | |
Carrying Value of Collateral | 880,999,000 | |
SFR properties | ||
Debt Instrument [Line Items] | ||
Carrying Value | 797,027,000 | 822,372,000 |
SFR properties | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 10,431,000 | |
Carrying Value | $ 10,431,000 | 4,677,000 |
Weighted Average Funding Cost | 7.80% | |
Weighted Average Life (Years) | 1 year 2 months 12 days | |
SFR properties | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Amortized Cost Basis of Collateral | $ 32,899,000 | |
Carrying Value of Collateral | 32,899,000 | |
SFR properties | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 833,387,000 | |
Carrying Value | $ 786,596,000 | 817,695,000 |
Weighted Average Funding Cost | 4.10% | |
Weighted Average Life (Years) | 3 years 7 months 6 days | |
SFR properties | Secured Notes and Bonds Payable | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.50% | |
SFR properties | Secured Notes and Bonds Payable | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.10% | |
SFR properties | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Amortized Cost Basis of Collateral | $ 956,118,000 | |
Carrying Value of Collateral | 956,118,000 | |
Excess MSRs | ||
Debt Instrument [Line Items] | ||
Carrying Value | 193,432,000 | 227,596,000 |
Excess MSRs | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 193,432,000 | |
Carrying Value | $ 193,432,000 | 227,596,000 |
Weighted Average Funding Cost | 8.80% | |
Weighted Average Life (Years) | 1 year 10 months 24 days | |
Excess MSRs | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 6 years 3 months 18 days | |
Outstanding Face of Collateral | $ 61,988,328,000 | |
Amortized Cost Basis of Collateral | 239,154,000 | |
Carrying Value of Collateral | 278,059,000 | |
MSRs | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 4,200,200,000 | |
Carrying Value | $ 4,191,504,000 | 4,791,543,000 |
Weighted Average Funding Cost | 6.90% | |
Weighted Average Life (Years) | 1 year 8 months 12 days | |
MSRs | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 7 years 10 months 24 days | |
Outstanding Face of Collateral | $ 523,532,413,000 | |
Amortized Cost Basis of Collateral | 6,317,954,000 | |
Carrying Value of Collateral | 8,616,793,000 | |
Servicer Advance Investments | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 275,952,000 | |
Carrying Value | $ 275,142,000 | 318,445,000 |
Weighted Average Funding Cost | 7.50% | |
Weighted Average Life (Years) | 4 months 24 days | |
Servicer Advance Investments | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 8 years 7 months 6 days | |
Outstanding Face of Collateral | $ 314,165,000 | |
Amortized Cost Basis of Collateral | 361,325,000 | |
Carrying Value of Collateral | $ 387,669,000 | |
Servicer Advances | Secured Notes and Bonds Payable | Secured Overnight Financing Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 1.50% | |
Servicer Advances | Secured Notes and Bonds Payable | Secured Overnight Financing Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 3.70% | |
Servicer Advances | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 2,091,447,000 | |
Carrying Value | $ 2,091,185,000 | 2,361,259,000 |
Weighted Average Funding Cost | 7.60% | |
Weighted Average Life (Years) | 6 months | |
Servicer Advances | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 8 months 12 days | |
Outstanding Face of Collateral | $ 2,555,898,000 | |
Amortized Cost Basis of Collateral | 2,434,266,000 | |
Carrying Value of Collateral | 2,434,266,000 | |
Residential Mortgage Loans | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 650,000,000 | |
Carrying Value | $ 650,000,000 | 769,988,000 |
Weighted Average Funding Cost | 6.50% | |
Weighted Average Life (Years) | 7 months 6 days | |
Residential Mortgage Loans | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 29 years 2 months 12 days | |
Outstanding Face of Collateral | $ 654,975,000 | |
Amortized Cost Basis of Collateral | 655,576,000 | |
Carrying Value of Collateral | 658,402,000 | |
Consumer Loans | ||
Debt Instrument [Line Items] | ||
Carrying Value | 1,269,768,000 | 299,498,000 |
Consumer Loans | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 1,303,517,000 | |
Carrying Value | $ 1,269,768,000 | 299,498,000 |
Weighted Average Funding Cost | 7.10% | |
Weighted Average Life (Years) | 4 years 6 months | |
Consumer Loans | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 1 year 8 months 12 days | |
Outstanding Face of Collateral | $ 1,475,494,000 | |
Amortized Cost Basis of Collateral | 1,422,559,000 | |
Carrying Value of Collateral | 1,436,080,000 | |
Mortgage Loans Receivable | ||
Debt Instrument [Line Items] | ||
Carrying Value | 1,719,384,000 | 1,733,581,000 |
Mortgage Loans Receivable | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 524,062,000 | |
Carrying Value | $ 507,228,000 | $ 512,919,000 |
Weighted Average Funding Cost | 5.70% | |
Weighted Average Life (Years) | 3 years 1 month 6 days | |
Interest rate | 4.70% | |
Face amount of debt at fixed rate | $ 238,100,000 | |
Mortgage Loans Receivable | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 7 months 6 days | |
Outstanding Face of Collateral | $ 567,432,000 | |
Amortized Cost Basis of Collateral | 567,432,000 | |
Carrying Value of Collateral | 567,432,000 | |
3.7% Secured Corporate Note | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 193,400,000 | |
Interest rate | 3.40% | |
2.5% To 3.5% Agency MSR Secured Note And Bond Payable | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 2,700,000,000 | |
2.5% To 3.5% Agency MSR Secured Note And Bond Payable | Secured Notes and Bonds Payable | Secured Overnight Financing Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 2.50% | |
2.5% To 3.5% Agency MSR Secured Note And Bond Payable | Secured Notes and Bonds Payable | Secured Overnight Financing Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 3.70% | |
3.0% To 5.4% Public Notes | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 1,500,000,000 | |
3.0% To 5.4% Public Notes | Secured Notes and Bonds Payable | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 3% | |
3.0% To 5.4% Public Notes | Secured Notes and Bonds Payable | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.40% | |
Revolving Warehouse Facility Backed Notes | Secured Notes and Bonds Payable | London Interbank Offered Rate | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 1.20% | |
Revolving Warehouse Facility Backed Notes | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 650,000,000 | |
Consumer Loan, UPB Class A | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Interest rate | 2% | |
Residential mortgage loan UPB and other collateral | $ 220,900,000 | |
Consumer Loan, UPB Class B | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.70% | |
Residential mortgage loan UPB and other collateral | $ 53,000,000 | |
Consumer Loan, Marcus | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 1,000,000,000 | |
Consumer Loan, Marcus | Secured Notes and Bonds Payable | Secured Overnight Financing Rate | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 3% |
DEBT OBLIGATIONS - Narrative (D
DEBT OBLIGATIONS - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 16, 2020 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||
Face amount of debt | $ 23,677,829 | $ 23,677,829 | |||
Interest expense and warehouse line fees | 382,554 | $ 218,089 | 1,020,780 | $ 507,751 | |
Secured Financing Agreements | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | 13,605,832 | 13,605,832 | |||
Debt redemption percentage | 65,155,898 | ||||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Issuance fees | 3,600 | $ 3,600 | |||
Interest expense and warehouse line fees | $ 8,700 | ||||
Senior Notes | 2025 Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | $ 550,000 | ||||
Interest rate | 6.25% | ||||
Debt redemption percentage | $ 544,500 | ||||
Issuance fees | $ 8,300 | ||||
Debt instrument, restrictive covenants, minimum total unencumbered assets maintenance requirement | 1.20 | ||||
Debt redemption percentage | 101% |
DEBT OBLIGATIONS - Carrying Val
DEBT OBLIGATIONS - Carrying Value of Debt Obligations (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Debt Instrument [Roll Forward] | |
Beginning balance | $ 21,356,679 |
Ending balance | 23,570,235 |
Excess MSRs | |
Debt Instrument [Roll Forward] | |
Beginning balance | 227,596 |
Ending balance | 193,432 |
MSRs | |
Debt Instrument [Roll Forward] | |
Beginning balance | 4,791,543 |
Ending balance | 4,191,504 |
Servicer advances | |
Debt Instrument [Roll Forward] | |
Beginning balance | 2,679,704 |
Ending balance | 2,366,327 |
Real Estate Securities | |
Debt Instrument [Roll Forward] | |
Beginning balance | 7,431,070 |
Ending balance | 10,227,701 |
Residential Mortgage Loans and REO | |
Debt Instrument [Roll Forward] | |
Beginning balance | 3,371,315 |
Ending balance | 2,805,092 |
Consumer Loans | |
Debt Instrument [Roll Forward] | |
Beginning balance | 299,498 |
Ending balance | 1,269,768 |
SFR properties | |
Debt Instrument [Roll Forward] | |
Beginning balance | 822,372 |
Ending balance | 797,027 |
Mortgage Loans Receivable | |
Debt Instrument [Roll Forward] | |
Beginning balance | 1,733,581 |
Ending balance | 1,719,384 |
Secured Financing Agreements | |
Debt Instrument [Roll Forward] | |
Beginning balance | 11,257,736 |
Borrowings | 65,155,898 |
Repayments | (62,809,823) |
Capitalized deferred financing costs, net of amortization | 1,570 |
Ending balance | 13,605,380 |
Secured Financing Agreements | Excess MSRs | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | MSRs | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | Servicer advances | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | Real Estate Securities | |
Debt Instrument [Roll Forward] | |
Borrowings | 34,530,433 |
Repayments | (31,733,802) |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | Residential Mortgage Loans and REO | |
Debt Instrument [Roll Forward] | |
Borrowings | 28,858,739 |
Repayments | (29,306,544) |
Capitalized deferred financing costs, net of amortization | 1,570 |
Secured Financing Agreements | Consumer Loans | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | SFR properties | |
Debt Instrument [Roll Forward] | |
Beginning balance | 4,677 |
Borrowings | 10,431 |
Repayments | (4,677) |
Capitalized deferred financing costs, net of amortization | 0 |
Ending balance | 10,431 |
Secured Financing Agreements | Mortgage Loans Receivable | |
Debt Instrument [Roll Forward] | |
Borrowings | 1,756,295 |
Repayments | (1,764,800) |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Notes and Bonds Payable | |
Debt Instrument [Roll Forward] | |
Borrowings | 4,894,344 |
Repayments | (5,024,509) |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | (5,892) |
Capitalized deferred financing costs, net of amortization | 1,968 |
Secured Notes and Bonds Payable | Excess MSRs | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | (34,164) |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Notes and Bonds Payable | MSRs | |
Debt Instrument [Roll Forward] | |
Borrowings | 1,753,504 |
Repayments | (2,353,301) |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | (242) |
Secured Notes and Bonds Payable | Servicer advances | |
Debt Instrument [Roll Forward] | |
Borrowings | 1,955,228 |
Repayments | (2,271,757) |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 3,152 |
Secured Notes and Bonds Payable | Real Estate Securities | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Notes and Bonds Payable | Residential Mortgage Loans and REO | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | (116,730) |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | (3,258) |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Notes and Bonds Payable | Consumer Loans | |
Debt Instrument [Roll Forward] | |
Borrowings | 1,185,612 |
Repayments | (212,867) |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | 3,058 |
Capitalized deferred financing costs, net of amortization | (5,533) |
Secured Notes and Bonds Payable | SFR properties | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | (35,690) |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 4,591 |
Secured Notes and Bonds Payable | Mortgage Loans Receivable | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Discount on borrowings, net of amortization | 0 |
Unrealized gain on notes, fair value | (5,692) |
Capitalized deferred financing costs, net of amortization | $ 0 |
DEBT OBLIGATIONS - Contractual
DEBT OBLIGATIONS - Contractual Maturities of Debt Obligations (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Debt maturing in: | |
October 1 through December 31, 2023 | $ 8,934,533 |
2024 | 9,296,247 |
2025 | 1,814,895 |
2026 | 1,725,498 |
2027 | 979,738 |
2028 and thereafter | 1,476,918 |
Total | 24,227,829 |
Face amount of debt | 23,677,829 |
Nonrecourse | |
Debt maturing in: | |
October 1 through December 31, 2023 | 0 |
2024 | 3,054,577 |
2025 | 0 |
2026 | 0 |
2027 | 734,738 |
2028 and thereafter | 1,303,518 |
Total | 5,092,833 |
Recourse | |
Debt maturing in: | |
October 1 through December 31, 2023 | 8,934,533 |
2024 | 6,241,670 |
2025 | 1,814,895 |
2026 | 1,725,498 |
2027 | 245,000 |
2028 and thereafter | 173,400 |
Total | 19,134,996 |
Nonrecourse, Secured Notes And Bonds Payable | |
Debt maturing in: | |
Total | 5,100,000 |
Recourse, Secured Financing Agreements | |
Debt maturing in: | |
Total | 13,600,000 |
Recourse, Secured Financing Agreements | Collateralized Secured Financing Agreement | |
Debt maturing in: | |
Face amount of debt | 9,700,000 |
Recourse, Secured Notes And Bonds Payable | |
Debt maturing in: | |
Total | $ 5,500,000 |
DEBT OBLIGATIONS - Borrowing Ca
DEBT OBLIGATIONS - Borrowing Capacity (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Residential Mortgage Loans and REO | |
Debt Instrument [Line Items] | |
Borrowing Capacity | $ 5,604,816 |
Balance Outstanding | 2,186,023 |
Available Financing | 3,418,793 |
Loan originations | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 6,827,000 |
Balance Outstanding | 1,192,108 |
Available Financing | 5,634,892 |
Excess MSRs | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 286,380 |
Balance Outstanding | 193,432 |
Available Financing | 92,948 |
MSRs | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 7,068,200 |
Balance Outstanding | 4,200,200 |
Available Financing | 2,868,000 |
Servicer advances | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 3,880,000 |
Balance Outstanding | 2,367,399 |
Available Financing | 1,512,601 |
Residential mortgage loans | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 296,762 |
Balance Outstanding | 195,411 |
Available Financing | 101,351 |
Debt Excess Borrowing Capacity | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 23,963,158 |
Balance Outstanding | 10,334,573 |
Available Financing | $ 13,628,585 |
DEBT OBLIGATIONS - Schedule o_2
DEBT OBLIGATIONS - Schedule of Debt Redemption (Details) - 2025 Senior Notes - Senior Notes | 9 Months Ended | |
Sep. 16, 2020 | Sep. 30, 2023 | |
Debt Instrument [Line Items] | ||
Debt redemption percentage | 101% | |
2023 | ||
Debt Instrument [Line Items] | ||
Debt redemption percentage | 101.563% | |
2024 and thereafter | ||
Debt Instrument [Line Items] | ||
Debt redemption percentage | 100% |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying Values and Fair Values of Financial Assets Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | ||
Assets | |||||||
MSRs and MSR financing receivables | $ 8,694,868 | $ 8,889,403 | |||||
Real estate and other securities | 9,201,474 | 8,289,277 | |||||
Residential mortgage loans, held-for-sale | 2,819,282 | 3,398,298 | |||||
Residential mortgage loans, held-for-sale, at fair value | 2,740,599 | 3,297,271 | |||||
Residential mortgage loans subject to repurchase | 1,443,546 | [1] | 1,219,890 | [1] | $ 1,897,142 | ||
Cash, cash equivalents and restricted cash | 1,585,730 | 1,617,634 | $ 1,949,575 | $ 1,528,442 | |||
Derivative assets | 63,532 | 52,229 | |||||
Liabilities | |||||||
Residential mortgage loan repurchase liability | 1,400,000 | ||||||
Derivative liabilities | 9,639 | 18,064 | |||||
US Treasury Bill Securities | |||||||
Liabilities | |||||||
Amortized cost | 992,100 | ||||||
Recurring Basis | |||||||
Assets | |||||||
Excess MSRs, principal balance | 61,988,328 | ||||||
MSRs and MSR financing receivables, principal balance | 530,921,220 | ||||||
Servicer advance investments, principal balance | 314,165 | ||||||
Real estate and other securities, principal balance | 26,859,938 | ||||||
Residential mortgage loans, held-for-sale, principal balance | 96,395 | ||||||
Residential mortgage loans, held-for-sale, at fair value, principal balance | 2,787,891 | ||||||
Residential mortgage loans, held-for-investment, at fair value, principal balance | 462,187 | ||||||
Residential mortgage loans subject to repurchase, principal balance | 1,443,546 | ||||||
Consumer loans, principal balance | 1,475,494 | ||||||
Mortgage loans receivable, principal balance | 2,135,424 | ||||||
Note receivable, principal balance | 103,082 | ||||||
Loans receivable, principal balance | 30,109 | ||||||
Cash, cash equivalents and restricted cash | 1,585,730 | ||||||
Derivative assets, principal balance | 31,135,387 | ||||||
Liabilities | |||||||
Secured financing agreements, principal balance | 13,605,832 | ||||||
Secured notes and bonds payable, principal balance | 10,071,997 | ||||||
Unsecured senior notes, net of issuance costs, principal balance | 546,374 | ||||||
Residential mortgage loan repurchase liability, principal balance | 1,443,546 | ||||||
Derivative liabilities, principal balance | 1,238,456 | ||||||
Recurring Basis | Mortgage Loans Receivable Securitization | |||||||
Liabilities | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | 50,600 | $ 20,900 | |||||
Recurring Basis | Asset-Backed Securities Issued | |||||||
Liabilities | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability value | 552,900 | ||||||
Recurring Basis | Level 3 | |||||||
Liabilities | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | 14,070,350 | 13,455,778 | |||||
Recurring Basis | Level 3 | Asset-Backed Securities Issued | |||||||
Liabilities | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability value | 245,695 | $ 319,486 | |||||
Recurring Basis | Carrying Value | |||||||
Assets | |||||||
Excess MSRs | 282,976 | ||||||
MSRs and MSR financing receivables | 8,694,868 | ||||||
Servicer advance investments | 387,669 | ||||||
Real estate and other securities | 10,193,596 | ||||||
Residential mortgage loans, held-for-sale | 78,683 | ||||||
Residential mortgage loans, held-for-sale, at fair value | 2,740,599 | ||||||
Residential mortgage loans, held-for-investment, at fair value | 370,957 | ||||||
Residential mortgage loans subject to repurchase | 1,443,546 | ||||||
Consumer loans | 1,436,080 | ||||||
Mortgage loans receivable | 2,135,424 | ||||||
Notes receivable | 33,250 | ||||||
Loans receivable | 30,109 | ||||||
Cash, cash equivalents and restricted cash | 1,585,730 | ||||||
Other assets | 19,626 | ||||||
Derivative assets | 63,532 | ||||||
Assets, fair value | 29,496,645 | ||||||
Liabilities | |||||||
Secured financing agreements | 13,605,380 | ||||||
Secured notes and bonds payable | 9,964,855 | ||||||
Unsecured senior notes, net of issuance costs | 546,374 | ||||||
Residential mortgage loan repurchase liability | 1,443,546 | ||||||
Derivative liabilities | 9,639 | ||||||
Liabilities, fair value | 25,569,794 | ||||||
Recurring Basis | Fair Value | |||||||
Assets | |||||||
Excess MSRs | 282,976 | ||||||
MSRs and MSR financing receivables | 8,694,868 | ||||||
Servicer advance investments | 387,669 | ||||||
Real estate and other securities | 10,193,657 | ||||||
Residential mortgage loans, held-for-sale | 78,683 | ||||||
Residential mortgage loans, held-for-sale, at fair value | 2,740,599 | ||||||
Residential mortgage loans, held-for-investment, at fair value | 370,957 | ||||||
Residential mortgage loans subject to repurchase | 1,443,546 | ||||||
Consumer loans | 1,436,080 | ||||||
Mortgage loans receivable | 2,135,424 | ||||||
Notes receivable | 33,250 | ||||||
Loans receivable | 30,109 | ||||||
Cash, cash equivalents and restricted cash | 1,585,730 | ||||||
Other assets | 19,626 | ||||||
Derivative assets | 63,532 | ||||||
Assets, fair value | 29,496,706 | ||||||
Liabilities | |||||||
Secured financing agreements | 13,605,380 | ||||||
Secured notes and bonds payable | 10,336,951 | ||||||
Unsecured senior notes, net of issuance costs | 523,133 | ||||||
Residential mortgage loan repurchase liability | 1,443,546 | ||||||
Derivative liabilities | 9,639 | ||||||
Liabilities, fair value | 25,918,649 | ||||||
Recurring Basis | Fair Value | Level 1 | |||||||
Assets | |||||||
Excess MSRs | 0 | ||||||
MSRs and MSR financing receivables | 0 | ||||||
Servicer advance investments | 0 | ||||||
Real estate and other securities | 992,183 | ||||||
Residential mortgage loans, held-for-sale | 0 | ||||||
Residential mortgage loans, held-for-sale, at fair value | 0 | ||||||
Residential mortgage loans, held-for-investment, at fair value | 0 | ||||||
Residential mortgage loans subject to repurchase | 0 | ||||||
Consumer loans | 0 | ||||||
Mortgage loans receivable | 0 | ||||||
Notes receivable | 0 | ||||||
Loans receivable | 0 | ||||||
Cash, cash equivalents and restricted cash | 1,585,730 | ||||||
Other assets | 0 | ||||||
Derivative assets | 0 | ||||||
Assets, fair value | 2,577,913 | ||||||
Liabilities | |||||||
Secured financing agreements | 0 | ||||||
Secured notes and bonds payable | 0 | ||||||
Unsecured senior notes, net of issuance costs | 0 | ||||||
Residential mortgage loan repurchase liability | 0 | ||||||
Derivative liabilities | 0 | ||||||
Liabilities, fair value | 0 | ||||||
Recurring Basis | Fair Value | Level 2 | |||||||
Assets | |||||||
Excess MSRs | 0 | ||||||
MSRs and MSR financing receivables | 0 | ||||||
Servicer advance investments | 0 | ||||||
Real estate and other securities | 8,300,246 | ||||||
Residential mortgage loans, held-for-sale | 0 | ||||||
Residential mortgage loans, held-for-sale, at fair value | 2,601,246 | ||||||
Residential mortgage loans, held-for-investment, at fair value | 0 | ||||||
Residential mortgage loans subject to repurchase | 1,443,546 | ||||||
Consumer loans | 0 | ||||||
Mortgage loans receivable | 348,062 | ||||||
Notes receivable | 0 | ||||||
Loans receivable | 0 | ||||||
Cash, cash equivalents and restricted cash | 0 | ||||||
Other assets | 0 | ||||||
Derivative assets | 49,781 | ||||||
Assets, fair value | 12,742,881 | ||||||
Liabilities | |||||||
Secured financing agreements | 13,605,380 | ||||||
Secured notes and bonds payable | 307,228 | ||||||
Unsecured senior notes, net of issuance costs | 0 | ||||||
Residential mortgage loan repurchase liability | 1,443,546 | ||||||
Derivative liabilities | 2,386 | ||||||
Liabilities, fair value | 15,358,540 | ||||||
Recurring Basis | Fair Value | Level 3 | |||||||
Assets | |||||||
Excess MSRs | 282,976 | ||||||
MSRs and MSR financing receivables | 8,694,868 | ||||||
Servicer advance investments | 387,669 | ||||||
Real estate and other securities | 901,228 | ||||||
Residential mortgage loans, held-for-sale | 78,683 | ||||||
Residential mortgage loans, held-for-sale, at fair value | 139,353 | ||||||
Residential mortgage loans, held-for-investment, at fair value | 370,957 | ||||||
Residential mortgage loans subject to repurchase | 0 | ||||||
Consumer loans | 1,436,080 | ||||||
Mortgage loans receivable | 1,787,362 | ||||||
Notes receivable | 33,250 | ||||||
Loans receivable | 30,109 | ||||||
Cash, cash equivalents and restricted cash | 0 | ||||||
Other assets | 19,626 | ||||||
Derivative assets | 13,751 | ||||||
Assets, fair value | 14,175,912 | ||||||
Liabilities | |||||||
Secured financing agreements | 0 | ||||||
Secured notes and bonds payable | 10,029,723 | ||||||
Unsecured senior notes, net of issuance costs | 523,133 | ||||||
Residential mortgage loan repurchase liability | 0 | ||||||
Derivative liabilities | 7,253 | ||||||
Liabilities, fair value | 10,560,109 | ||||||
Recurring Basis | Fair Value | Fair Value Measured at Net Asset Value Per Share | |||||||
Assets | |||||||
Other assets | $ 0 | ||||||
[1]See Note 5 for details. |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Assets Measured at Fair Value on a Recurring Basis using Level 3 Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Non-Agency | |||||
Gain (loss) included in net income | |||||
Gain (loss) on settlement of investments, net | $ 0 | $ (100) | $ (200) | $ (1,600) | |
Excess MSRs in Equity Method Investees | |||||
Purchases, sales and repayments | |||||
Rithm Capital’s percentage ownership | 50% | 50% | 50% | ||
Recurring Basis | Level 3 | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | $ 13,455,778 | ||||
Transfers | |||||
Transfers from Level 3 | (295,315) | ||||
Transfers to Level 3 | 20,421 | ||||
Gain (loss) included in net income | |||||
Credit losses on securities | 371 | ||||
Included in servicing revenue | (99,338) | ||||
Excess MSRs | (11,862) | ||||
Change in fair value of excess MSRs, equity method investees | 0 | ||||
Servicer advance investments | 20,273 | ||||
Residential mortgage loans | (9,548) | ||||
Consumer loans | (14,024) | ||||
Gain (loss) on settlement of investments, net | 284 | ||||
Other income (loss), net | 37,202 | ||||
Gains (losses) included in OCI | 685 | ||||
Interest income | 79,814 | ||||
Purchases, sales and repayments | |||||
Purchases, net | 2,214,507 | ||||
Proceeds from sales | (924,328) | ||||
Proceeds from repayments | (2,536,633) | ||||
Originations and other | 2,132,063 | ||||
Balance, ending | $ 14,070,350 | 14,070,350 | |||
Recurring Basis | Level 3 | Servicer Advance Investments | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | 398,820 | ||||
Transfers | |||||
Transfers from Level 3 | 0 | ||||
Transfers to Level 3 | 0 | ||||
Gain (loss) included in net income | |||||
Credit losses on securities | 0 | ||||
Included in servicing revenue | 0 | ||||
Excess MSRs | 0 | ||||
Change in fair value of excess MSRs, equity method investees | 0 | ||||
Servicer advance investments | 20,273 | ||||
Residential mortgage loans | 0 | ||||
Consumer loans | 0 | ||||
Gain (loss) on settlement of investments, net | 0 | ||||
Other income (loss), net | 0 | ||||
Gains (losses) included in OCI | 0 | ||||
Interest income | 16,257 | ||||
Purchases, sales and repayments | |||||
Purchases, net | 644,594 | ||||
Proceeds from sales | 0 | ||||
Proceeds from repayments | (692,275) | ||||
Originations and other | 0 | ||||
Balance, ending | 387,669 | 387,669 | |||
Recurring Basis | Level 3 | Excess MSRs | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | 321,803 | ||||
Transfers | |||||
Transfers from Level 3 | 0 | ||||
Transfers to Level 3 | 0 | ||||
Gain (loss) included in net income | |||||
Credit losses on securities | 0 | ||||
Included in servicing revenue | 0 | ||||
Excess MSRs | (11,862) | ||||
Change in fair value of excess MSRs, equity method investees | 0 | ||||
Servicer advance investments | 0 | ||||
Residential mortgage loans | 0 | ||||
Consumer loans | 0 | ||||
Gain (loss) on settlement of investments, net | 284 | ||||
Other income (loss), net | (134) | ||||
Gains (losses) included in OCI | 0 | ||||
Interest income | 16,733 | ||||
Purchases, sales and repayments | |||||
Purchases, net | 0 | ||||
Proceeds from sales | (900) | ||||
Proceeds from repayments | (42,948) | ||||
Originations and other | 0 | ||||
Balance, ending | 282,976 | 282,976 | |||
Recurring Basis | Level 3 | MSRs and MSR Financing Receivables | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | 8,889,403 | ||||
Transfers | |||||
Transfers from Level 3 | 0 | ||||
Transfers to Level 3 | 0 | ||||
Gain (loss) included in net income | |||||
Credit losses on securities | 0 | ||||
Included in servicing revenue | (99,338) | ||||
Excess MSRs | 0 | ||||
Change in fair value of excess MSRs, equity method investees | 0 | ||||
Servicer advance investments | 0 | ||||
Residential mortgage loans | 0 | ||||
Consumer loans | 0 | ||||
Gain (loss) on settlement of investments, net | 0 | ||||
Other income (loss), net | 0 | ||||
Gains (losses) included in OCI | 0 | ||||
Interest income | 0 | ||||
Purchases, sales and repayments | |||||
Purchases, net | 0 | ||||
Proceeds from sales | (704,657) | ||||
Proceeds from repayments | 0 | ||||
Originations and other | 609,460 | ||||
Balance, ending | 8,694,868 | 8,694,868 | |||
Recurring Basis | Level 3 | Non-Agency | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | 950,860 | ||||
Transfers | |||||
Transfers from Level 3 | 0 | ||||
Transfers to Level 3 | 0 | ||||
Gain (loss) included in net income | |||||
Credit losses on securities | 371 | ||||
Included in servicing revenue | 0 | ||||
Excess MSRs | 0 | ||||
Change in fair value of excess MSRs, equity method investees | 0 | ||||
Servicer advance investments | 0 | ||||
Residential mortgage loans | 0 | ||||
Consumer loans | 0 | ||||
Gain (loss) on settlement of investments, net | |||||
Other income (loss), net | (3,028) | ||||
Gains (losses) included in OCI | 685 | ||||
Interest income | 21,121 | ||||
Purchases, sales and repayments | |||||
Purchases, net | 32,600 | ||||
Proceeds from sales | 0 | ||||
Proceeds from repayments | (101,381) | ||||
Originations and other | 0 | ||||
Balance, ending | 901,228 | 901,228 | |||
Recurring Basis | Level 3 | Derivatives | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | 8,786 | ||||
Transfers | |||||
Transfers from Level 3 | 0 | ||||
Transfers to Level 3 | 0 | ||||
Gain (loss) included in net income | |||||
Credit losses on securities | 0 | ||||
Included in servicing revenue | 0 | ||||
Excess MSRs | 0 | ||||
Change in fair value of excess MSRs, equity method investees | 0 | ||||
Servicer advance investments | 0 | ||||
Residential mortgage loans | 0 | ||||
Consumer loans | 0 | ||||
Gain (loss) on settlement of investments, net | 0 | ||||
Other income (loss), net | (2,288) | ||||
Gains (losses) included in OCI | 0 | ||||
Interest income | 0 | ||||
Purchases, sales and repayments | |||||
Purchases, net | 0 | ||||
Proceeds from sales | 0 | ||||
Proceeds from repayments | 0 | ||||
Originations and other | 0 | ||||
Balance, ending | 6,498 | 6,498 | |||
Recurring Basis | Level 3 | Residential mortgage loans | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | 713,896 | ||||
Transfers | |||||
Transfers from Level 3 | (41,430) | ||||
Transfers to Level 3 | 20,421 | ||||
Gain (loss) included in net income | |||||
Credit losses on securities | 0 | ||||
Included in servicing revenue | 0 | ||||
Excess MSRs | 0 | ||||
Change in fair value of excess MSRs, equity method investees | 0 | ||||
Servicer advance investments | 0 | ||||
Residential mortgage loans | (9,548) | ||||
Consumer loans | 0 | ||||
Gain (loss) on settlement of investments, net | 0 | ||||
Other income (loss), net | 42,421 | ||||
Gains (losses) included in OCI | 0 | ||||
Interest income | 0 | ||||
Purchases, sales and repayments | |||||
Purchases, net | 38,335 | ||||
Proceeds from sales | (239,446) | ||||
Proceeds from repayments | (69,718) | ||||
Originations and other | 55,379 | ||||
Balance, ending | 510,310 | 510,310 | |||
Recurring Basis | Level 3 | Consumer Loans | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | 363,756 | ||||
Transfers | |||||
Transfers from Level 3 | 0 | ||||
Transfers to Level 3 | 0 | ||||
Gain (loss) included in net income | |||||
Credit losses on securities | 0 | ||||
Included in servicing revenue | 0 | ||||
Excess MSRs | 0 | ||||
Change in fair value of excess MSRs, equity method investees | 0 | ||||
Servicer advance investments | 0 | ||||
Residential mortgage loans | 0 | ||||
Consumer loans | (14,024) | ||||
Gain (loss) on settlement of investments, net | 0 | ||||
Other income (loss), net | 0 | ||||
Gains (losses) included in OCI | 0 | ||||
Interest income | 21,281 | ||||
Purchases, sales and repayments | |||||
Purchases, net | 1,317,347 | ||||
Proceeds from sales | 20,675 | ||||
Proceeds from repayments | (272,955) | ||||
Originations and other | 0 | ||||
Balance, ending | 1,436,080 | 1,436,080 | |||
Recurring Basis | Level 3 | Notes and Loans Receivable | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | 94,401 | ||||
Transfers | |||||
Transfers from Level 3 | 0 | ||||
Transfers to Level 3 | 0 | ||||
Gain (loss) included in net income | |||||
Credit losses on securities | 0 | ||||
Included in servicing revenue | 0 | ||||
Excess MSRs | 0 | ||||
Change in fair value of excess MSRs, equity method investees | 0 | ||||
Servicer advance investments | 0 | ||||
Residential mortgage loans | 0 | ||||
Consumer loans | 0 | ||||
Gain (loss) on settlement of investments, net | 0 | ||||
Other income (loss), net | 231 | ||||
Gains (losses) included in OCI | 0 | ||||
Interest income | 4,422 | ||||
Purchases, sales and repayments | |||||
Purchases, net | 35,000 | ||||
Proceeds from sales | 0 | ||||
Proceeds from repayments | (70,695) | ||||
Originations and other | 0 | ||||
Balance, ending | 63,359 | 63,359 | |||
Recurring Basis | Level 3 | Mortgage Loans Receivable | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | 1,714,053 | ||||
Transfers | |||||
Transfers from Level 3 | (253,885) | ||||
Transfers to Level 3 | 0 | ||||
Gain (loss) included in net income | |||||
Credit losses on securities | 0 | ||||
Included in servicing revenue | 0 | ||||
Excess MSRs | 0 | ||||
Change in fair value of excess MSRs, equity method investees | 0 | ||||
Servicer advance investments | 0 | ||||
Residential mortgage loans | 0 | ||||
Consumer loans | 0 | ||||
Gain (loss) on settlement of investments, net | 0 | ||||
Other income (loss), net | 0 | ||||
Gains (losses) included in OCI | 0 | ||||
Interest income | 0 | ||||
Purchases, sales and repayments | |||||
Purchases, net | 146,631 | ||||
Proceeds from sales | 0 | ||||
Proceeds from repayments | (1,286,661) | ||||
Originations and other | 1,467,224 | ||||
Balance, ending | $ 1,787,362 | $ 1,787,362 |
FAIR VALUE MEASUREMENTS - Fin_2
FAIR VALUE MEASUREMENTS - Financial Liabilities Measured at Fair Value on a Recurring Basis using Level 3 Inputs (Details) - Recurring Basis - Asset-Backed Securities Issued $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Purchases, sales and repayments | |
Balance, ending | $ 552,900 |
Level 3 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance, beginning | 319,486 |
Gains (losses) included in net income | |
Other income | (200) |
Purchases, sales and repayments | |
Proceeds from sales | 0 |
Payments | (73,591) |
Balance, ending | $ 245,695 |
FAIR VALUE MEASUREMENTS - Infor
FAIR VALUE MEASUREMENTS - Information Regarding Inputs used in Valuing Excess MSRs Owned Directly and through Equity Method Investees (Details) | 9 Months Ended |
Sep. 30, 2023 $ / Loan | |
Prepayment Rate | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.001 |
Prepayment Rate | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.844 |
Prepayment Rate | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.076 |
Prepayment Rate | Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.030 |
Prepayment Rate | Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.837 |
Prepayment Rate | Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.064 |
Prepayment Rate | Non-Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.001 |
Prepayment Rate | Non-Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.844 |
Prepayment Rate | Non-Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.118 |
Prepayment Rate | Ginnie Mae | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.054 |
Prepayment Rate | Ginnie Mae | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.815 |
Prepayment Rate | Ginnie Mae | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.089 |
Prepayment Rate | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.023 |
Prepayment Rate | Directly Held | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.110 |
Prepayment Rate | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.059 |
Prepayment Rate | Held through Equity Method Investees | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.063 |
Prepayment Rate | Held through Equity Method Investees | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.090 |
Prepayment Rate | Held through Equity Method Investees | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.078 |
Delinquency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.001 |
Delinquency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.714 |
Delinquency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.057 |
Delinquency | Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.001 |
Delinquency | Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.667 |
Delinquency | Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.021 |
Delinquency | Non-Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.007 |
Delinquency | Non-Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.700 |
Delinquency | Non-Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.222 |
Delinquency | Ginnie Mae | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.002 |
Delinquency | Ginnie Mae | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.714 |
Delinquency | Ginnie Mae | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.086 |
Delinquency | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.002 |
Delinquency | Directly Held | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.089 |
Delinquency | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.044 |
Delinquency | Held through Equity Method Investees | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.022 |
Delinquency | Held through Equity Method Investees | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.056 |
Delinquency | Held through Equity Method Investees | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.035 |
Recapture Rate | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0 |
Recapture Rate | Directly Held | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.907 |
Recapture Rate | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.553 |
Recapture Rate | Held through Equity Method Investees | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.451 |
Recapture Rate | Held through Equity Method Investees | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.643 |
Recapture Rate | Held through Equity Method Investees | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.590 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0007 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0188 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0033 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0007 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0108 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0026 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Non-Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0010 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Non-Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0188 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Non-Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0046 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Ginnie Mae | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0018 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Ginnie Mae | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0116 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Ginnie Mae | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0043 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0007 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Directly Held | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0059 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0020 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Held through Equity Method Investees | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0016 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Held through Equity Method Investees | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0025 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) | Held through Equity Method Investees | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0021 |
Collateral Weighted Average Maturity (Years) | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 0 years |
Collateral Weighted Average Maturity (Years) | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 40 years |
Collateral Weighted Average Maturity (Years) | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 24 years |
Collateral Weighted Average Maturity (Years) | Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 0 years |
Collateral Weighted Average Maturity (Years) | Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 40 years |
Collateral Weighted Average Maturity (Years) | Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 23 years |
Collateral Weighted Average Maturity (Years) | Non-Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 0 years |
Collateral Weighted Average Maturity (Years) | Non-Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 40 years |
Collateral Weighted Average Maturity (Years) | Non-Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 24 years |
Collateral Weighted Average Maturity (Years) | Ginnie Mae | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 0 years |
Collateral Weighted Average Maturity (Years) | Ginnie Mae | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 40 years |
Collateral Weighted Average Maturity (Years) | Ginnie Mae | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 27 years |
Collateral Weighted Average Maturity (Years) | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 11 years |
Collateral Weighted Average Maturity (Years) | Directly Held | Excess MSRs | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 27 years |
Collateral Weighted Average Maturity (Years) | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 21 years |
Collateral Weighted Average Maturity (Years) | Held through Equity Method Investees | Excess MSRs | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 15 years |
Collateral Weighted Average Maturity (Years) | Held through Equity Method Investees | Excess MSRs | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 21 years |
Collateral Weighted Average Maturity (Years) | Held through Equity Method Investees | Excess MSRs | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 19 years |
Measurement Input, Servicing Cost | Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 6.91 |
Measurement Input, Servicing Cost | Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 7.18 |
Measurement Input, Servicing Cost | Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 6.96 |
Measurement Input, Servicing Cost | Non-Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 7.47 |
Measurement Input, Servicing Cost | Non-Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 9.55 |
Measurement Input, Servicing Cost | Non-Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 9.14 |
Measurement Input, Servicing Cost | Ginnie Mae | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 8.36 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Residential Mortgage Loans, Held-For-Sale, At Lower Cost Or Fair Value | |
Schedule of Equity Method Investments [Line Items] | |
Asset fair value adjustment | $ 3.9 |
Real Estate Owned | |
Schedule of Equity Method Investments [Line Items] | |
Asset fair value adjustment | 1.1 |
Fair Value, Measurements, Nonrecurring | |
Schedule of Equity Method Investments [Line Items] | |
Assets, fair value | 85.5 |
Fair Value, Measurements, Nonrecurring | Residential Mortgage Loans, Held-for-Sale | |
Schedule of Equity Method Investments [Line Items] | |
Assets, fair value | 78.7 |
Fair Value, Measurements, Nonrecurring | Real Estate Acquired in Satisfaction of Debt | |
Schedule of Equity Method Investments [Line Items] | |
Assets, fair value | $ 6.8 |
Weighted Average | |
Schedule of Equity Method Investments [Line Items] | |
Broker price discount | 21% |
Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Broker price discount | 10% |
Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Broker price discount | 25% |
Excess MSR joint ventures | Weighted Average | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 8.80% |
Excess MSR joint ventures | Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 8.50% |
Excess MSR joint ventures | Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 9% |
MSRs | Weighted Average | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 8.50% |
MSRs | Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 7.90% |
MSRs | Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 10.80% |
MSRs | Excess MSR joint ventures | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 8.80% |
Secured Overnight Financing Rate | MSRs and MSR Financing Receivables | |
Schedule of Equity Method Investments [Line Items] | |
Variable interest rate spread | 4.10% |
FAIR VALUE MEASUREMENTS - Inf_2
FAIR VALUE MEASUREMENTS - Information Regarding the Inputs used in Valuing the Servicer Advances (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value inputs, monthly servicing fee | 0.027% |
Servicer Advances | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 1.10% |
Mortgage Servicing Amount | 0.00182 |
Servicer Advances | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.026 |
Servicer Advances | Minimum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.033 |
Servicer Advances | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.062 |
Servicer Advances | Minimum | Collateral Weighted Average Maturity (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Collateral Weighted Average Maturity (Years) | 21 years 2 months 12 days |
Servicer Advances | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2.20% |
Mortgage Servicing Amount | 0.00199 |
Servicer Advances | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.044 |
Servicer Advances | Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.205 |
Servicer Advances | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.067 |
Servicer Advances | Maximum | Collateral Weighted Average Maturity (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Collateral Weighted Average Maturity (Years) | 21 years 10 months 24 days |
Servicer Advances | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2.20% |
Mortgage Servicing Amount | 0.00198 |
Servicer Advances | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.044 |
Servicer Advances | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.201 |
Servicer Advances | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.062 |
Servicer Advances | Weighted Average | Collateral Weighted Average Maturity (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Collateral Weighted Average Maturity (Years) | 21 years 10 months 24 days |
FAIR VALUE MEASUREMENTS - Secur
FAIR VALUE MEASUREMENTS - Securities Valuation Methodology and Results (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) source | Dec. 31, 2022 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Face Amount | $ 25,859,938 | |
Amortized Cost Basis | 9,454,025 | |
Real estate and other securities | $ 9,201,474 | $ 8,289,277 |
Number of broker quotation sources | source | 2 | |
Percent of securities | 62.20% | |
Multiple Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | $ 9,201,474 | |
Single Quote | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | 0 | |
Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Face Amount | 8,731,597 | |
Amortized Cost Basis | 8,554,197 | |
Agency | Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | 8,300,246 | |
Agency | Level 2 | Multiple Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | 8,300,246 | |
Agency | Level 2 | Single Quote | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | 0 | |
Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Face Amount | 17,128,341 | |
Amortized Cost Basis | 899,828 | |
Fair Value | $ 560,081 | |
Non-Agency | Minimum | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.057 | |
Non-Agency | Minimum | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0 | |
Non-Agency | Minimum | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0 | |
Non-Agency | Minimum | Loss Severity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0 | |
Non-Agency | Maximum | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.150 | |
Non-Agency | Maximum | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.407 | |
Non-Agency | Maximum | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.024 | |
Non-Agency | Maximum | Loss Severity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.759 | |
Non-Agency | Weighted Average | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.093 | |
Non-Agency | Weighted Average | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.071 | |
Non-Agency | Weighted Average | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.004 | |
Non-Agency | Weighted Average | Loss Severity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.130 | |
Non-Agency | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | $ 901,228 | |
Non-Agency | Level 3 | Multiple Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | 901,228 | |
Non-Agency | Level 3 | Single Quote | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | $ 0 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Inputs Used In Valuing Residential Mortgage Loans, Consumer Loans, Mortgage Loans Receivable, Derivatives, and Mortgage Backed Securities (Details) $ in Thousands | Sep. 30, 2023 USD ($) security |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans, held-for-investment, fair value | $ 370,957 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.087 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.036 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Minimum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.069 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.211 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.092 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.050 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.170 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.610 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.089 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.044 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.093 |
Residential Mortgage Loans, Held-for-Investment, at Fair Value | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.412 |
Consumer Loans Held-for-Investment, At Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans | $ 1,436,080 |
Consumer Loans Held-for-Investment, At Fair Value | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans | 303,881 |
Consumer Loans Held-for-Investment, At Fair Value | Marcus | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans | $ 1,132,199 |
Consumer Loans Held-for-Investment, At Fair Value | Minimum | Discount Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.084 |
Consumer Loans Held-for-Investment, At Fair Value | Minimum | Prepayment Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.091 |
Consumer Loans Held-for-Investment, At Fair Value | Minimum | Delinquency | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.017 |
Consumer Loans Held-for-Investment, At Fair Value | Minimum | Loss Severity | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.600 |
Consumer Loans Held-for-Investment, At Fair Value | Maximum | Discount Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.094 |
Consumer Loans Held-for-Investment, At Fair Value | Maximum | Prepayment Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.366 |
Consumer Loans Held-for-Investment, At Fair Value | Maximum | Delinquency | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.075 |
Consumer Loans Held-for-Investment, At Fair Value | Maximum | Loss Severity | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.600 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Discount Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.086 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Discount Rate | Marcus | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.111 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Prepayment Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.177 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Prepayment Rate | Marcus | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.205 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Delinquency | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.047 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Delinquency | Marcus | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.053 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Loss Severity | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.600 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Loss Severity | Marcus | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.070 |
Interest rate lock commitments | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, fair value | $ 6,498 |
Interest rate lock commitments | Minimum | Loan Funding Probability | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.003 |
Interest rate lock commitments | Minimum | Fair Value of Initial Servicing Rights (Bps) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.00007 |
Interest rate lock commitments | Maximum | Loan Funding Probability | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 1 |
Interest rate lock commitments | Maximum | Fair Value of Initial Servicing Rights (Bps) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.03450 |
Interest rate lock commitments | Weighted Average | Loan Funding Probability | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.826 |
Interest rate lock commitments | Weighted Average | Fair Value of Initial Servicing Rights (Bps) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.02224 |
Mortgage-Backed Securities Issued | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, fair value | $ 245,695 |
Mortgage-Backed Securities Issued | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.064 |
Mortgage-Backed Securities Issued | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.177 |
Mortgage-Backed Securities Issued | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.047 |
Mortgage-Backed Securities Issued | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.935 |
Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Dealer price quotes and historical sale transactions | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | security | 0.492 |
Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Dealer price quotes and historical sale transactions | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | security | 1 |
Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Dealer price quotes and historical sale transactions | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | security | 0.879 |
Performing loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 109,519 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 43,697 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.087 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.019 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.023 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.121 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.092 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.077 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.100 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.610 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.090 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.054 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.054 |
Performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.213 |
Performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 65,822 |
Performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Level 3 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Percentage of loans | 47.90% |
Performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.060 |
Performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.010 |
Performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.001 |
Performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.001 |
Performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.421 |
Performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.414 |
Performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.633 |
Performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.053 |
Performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.030 |
Performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.125 |
Non-performing loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 29,834 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 19,807 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.086 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.061 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 2 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 2.271 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.091 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.127 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 6.4 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 7.825 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.089 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.081 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 2.9 |
Non-performing loans | Acquired loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 2.799 |
Non-performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 10,027 |
Non-performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Level 3 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Percentage of loans | 76.90% |
Non-performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.060 |
Non-performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Minimum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.5 |
Non-performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 9.2 |
Non-performing loans | Originated loans | Residential Mortgage Loans Held-for-Sale, At Fair Value | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 1.9 |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of Inputs Used in Valuing Assets and Liabilities At Fair Value (Details) - Fair Value, Measurements, Nonrecurring - Fair Value $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value and Carrying Value | $ 78,683 |
Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.090 |
Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 4 years 3 months 18 days |
Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.042 |
CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.123 |
Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.275 |
Performing loans | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value and Carrying Value | $ 57,229 |
Performing loans | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.053 |
Performing loans | Minimum | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 4 years 7 months 6 days |
Performing loans | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.019 |
Performing loans | Minimum | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.069 |
Performing loans | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.211 |
Performing loans | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.092 |
Performing loans | Maximum | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 5 years 7 months 6 days |
Performing loans | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.050 |
Performing loans | Maximum | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.138 |
Performing loans | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.610 |
Performing loans | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.089 |
Performing loans | Weighted Average | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 4 years 8 months 12 days |
Performing loans | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.047 |
Performing loans | Weighted Average | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.075 |
Performing loans | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.222 |
Non-performing loans | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value and Carrying Value | $ 21,454 |
Non-performing loans | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.086 |
Non-performing loans | Minimum | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 2 years |
Non-performing loans | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.019 |
Non-performing loans | Minimum | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.118 |
Non-performing loans | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.348 |
Non-performing loans | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.100 |
Non-performing loans | Maximum | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 6 years 4 months 24 days |
Non-performing loans | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.045 |
Non-performing loans | Maximum | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.377 |
Non-performing loans | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.651 |
Non-performing loans | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.093 |
Non-performing loans | Weighted Average | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 3 years 2 months 12 days |
Non-performing loans | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.029 |
Non-performing loans | Weighted Average | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.250 |
Non-performing loans | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.415 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||||
May 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2022 | Sep. 25, 2020 | |
Variable Interest Entity [Line Items] | ||||||
Face amount of debt | $ 23,677,829 | |||||
Long-term debt | 24,227,829 | |||||
Recurring Basis | Mortgage Loans Receivable Securitization | ||||||
Variable Interest Entity [Line Items] | ||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | $ 50,600 | $ 20,900 | ||||
2022-RTL1 Securitization | Mortgage Loans Receivable | ||||||
Variable Interest Entity [Line Items] | ||||||
Debt instrument, term | 36 months | |||||
Consumer Loan SPVs | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership interest | 53.50% | |||||
Securitization Notes Payable | 2022-RTL1 Securitization | ||||||
Variable Interest Entity [Line Items] | ||||||
Face amount of debt | $ 433,500 | |||||
Long-term debt | $ 348,100 | |||||
VIE, consolidated | Securitization Notes Payable | ||||||
Variable Interest Entity [Line Items] | ||||||
Face amount of debt | $ 750,000 | |||||
Debt instrument, term | 3 years | |||||
VIE, consolidated | Securitization Notes Payable | Consumer Loan SPVs | ||||||
Variable Interest Entity [Line Items] | ||||||
Face amount of debt | $ 663,000 | |||||
Advance Purchaser | Corporate Joint Venture | ||||||
Variable Interest Entity [Line Items] | ||||||
Rithm Capital’s percentage ownership | 89.30% | 89.30% | 89.30% |
VARIABLE INTEREST ENTITIES - Va
VARIABLE INTEREST ENTITIES - Variable Interest Entities, Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Assets | |||
Servicer advance investments, at fair value | $ 387,669 | $ 398,820 | |
Residential mortgage loans, held-for-investment, at fair value | 370,957 | 452,519 | |
Residential mortgage loans, held-for-sale, at fair value | 2,740,599 | 3,297,271 | |
Cash and cash equivalents | [1] | 1,217,283 | 1,336,508 |
Restricted cash | 368,447 | ||
Total assets | 34,745,528 | 32,479,336 | |
Liabilities | |||
Secured financing agreements | [1] | 13,605,380 | 11,257,736 |
Accrued expenses and other liabilities | [1] | 1,782,315 | 1,486,667 |
Total liabilities | 27,477,565 | 25,469,268 | |
VIE, consolidated | |||
Assets | |||
Servicer advance investments, at fair value | 378,664 | 387,675 | |
Residential mortgage loans, held-for-investment, at fair value | 22,699 | ||
Residential mortgage loans, held-for-sale, at fair value | 1,094,978 | 844,000 | |
Consumer loans | 303,881 | 363,756 | |
Mortgage loans receivable | 348,061 | 349,975 | |
Cash and cash equivalents | 30,828 | 85,961 | |
Restricted cash | 36,763 | 31,000 | |
Other assets | 4,947 | 172,025 | |
Total assets | 2,198,122 | 2,257,091 | |
Liabilities | |||
Secured financing agreements | 51,325 | ||
Secured notes and bonds payable | 1,819,772 | 1,694,468 | |
Accrued expenses and other liabilities | 10,465 | 33,108 | |
Total liabilities | 1,830,237 | 1,778,901 | |
VIE, consolidated | Advance Purchaser | |||
Assets | |||
Servicer advance investments, at fair value | 378,664 | 387,675 | |
Residential mortgage loans, held-for-investment, at fair value | 0 | ||
Residential mortgage loans, held-for-sale, at fair value | 0 | 0 | |
Consumer loans | 0 | 0 | |
Mortgage loans receivable | 0 | 0 | |
Cash and cash equivalents | 5,241 | 34,084 | |
Restricted cash | 8,151 | 7,433 | |
Other assets | 9 | 9 | |
Total assets | 392,065 | 429,201 | |
Liabilities | |||
Secured financing agreements | 0 | ||
Secured notes and bonds payable | 271,488 | 313,093 | |
Accrued expenses and other liabilities | 2,612 | 1,928 | |
Total liabilities | 274,100 | 315,021 | |
VIE, consolidated | Newrez Joint Ventures | |||
Assets | |||
Servicer advance investments, at fair value | 0 | 0 | |
Residential mortgage loans, held-for-investment, at fair value | 0 | ||
Residential mortgage loans, held-for-sale, at fair value | 0 | 0 | |
Consumer loans | 0 | 0 | |
Mortgage loans receivable | 0 | 0 | |
Cash and cash equivalents | 21,177 | 28,404 | |
Restricted cash | 0 | 0 | |
Other assets | 410 | 1,026 | |
Total assets | 21,587 | 29,430 | |
Liabilities | |||
Secured financing agreements | 0 | ||
Secured notes and bonds payable | 0 | 0 | |
Accrued expenses and other liabilities | 3,257 | 4,306 | |
Total liabilities | 3,257 | 4,306 | |
VIE, consolidated | Residential Mortgage Loans | |||
Assets | |||
Servicer advance investments, at fair value | 0 | 0 | |
Residential mortgage loans, held-for-investment, at fair value | 22,699 | ||
Residential mortgage loans, held-for-sale, at fair value | 1,094,978 | 844,000 | |
Consumer loans | 0 | 0 | |
Mortgage loans receivable | 0 | 0 | |
Cash and cash equivalents | 4,410 | 23,473 | |
Restricted cash | 9,378 | 7,547 | |
Other assets | 0 | 165,975 | |
Total assets | 1,108,766 | 1,063,694 | |
Liabilities | |||
Secured financing agreements | 51,325 | ||
Secured notes and bonds payable | 995,361 | 768,959 | |
Accrued expenses and other liabilities | 74 | 25,381 | |
Total liabilities | 995,435 | 845,665 | |
VIE, consolidated | Consumer Loan SPVs | |||
Assets | |||
Servicer advance investments, at fair value | 0 | 0 | |
Residential mortgage loans, held-for-investment, at fair value | 0 | ||
Residential mortgage loans, held-for-sale, at fair value | 0 | 0 | |
Consumer loans | 303,881 | 363,756 | |
Mortgage loans receivable | 0 | 0 | |
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 6,375 | 6,652 | |
Other assets | 4,528 | 5,253 | |
Total assets | 314,784 | 375,661 | |
Liabilities | |||
Secured financing agreements | 0 | ||
Secured notes and bonds payable | 245,695 | 299,498 | |
Accrued expenses and other liabilities | 1,422 | 1,144 | |
Total liabilities | 247,117 | 300,642 | |
VIE, consolidated | Mortgage Loans Receivable | |||
Assets | |||
Servicer advance investments, at fair value | 0 | 0 | |
Residential mortgage loans, held-for-investment, at fair value | 0 | ||
Residential mortgage loans, held-for-sale, at fair value | 0 | 0 | |
Consumer loans | 0 | 0 | |
Mortgage loans receivable | 348,061 | 349,975 | |
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 12,859 | 9,368 | |
Other assets | 0 | (238) | |
Total assets | 360,920 | 359,105 | |
Liabilities | |||
Secured financing agreements | 0 | ||
Secured notes and bonds payable | 307,228 | 312,918 | |
Accrued expenses and other liabilities | 3,100 | 349 | |
Total liabilities | $ 310,328 | $ 313,267 | |
[1]The Company's Consolidated Balance Sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations and liabilities of the VIE for which creditors do not have recourse to the primary beneficiary (Rithm Capital). As of September 30, 2023 and December 31, 2022, total assets of consolidated VIEs were $2.2 billion and $2.3 billion, respectively, and total liabilities of consolidated VIEs were $1.8 billion and $1.8 billion, respectively. See Note 20 for further details. |
VARIABLE INTEREST ENTITIES - _2
VARIABLE INTEREST ENTITIES - Variable Interest Entities, Characteristics (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | |||
Carrying value of Rithm’s investments in unconsolidated commercial real estate VIEs | $ 67,819 | $ 71,388 | |
Variable Interest Entity, Not Primary Beneficiary | Commercial Real Estate | |||
Variable Interest Entity [Line Items] | |||
Carrying value of commercial real estate held within unconsolidated VIEs | 48,438 | 0 | |
Carrying value of Rithm’s investments in unconsolidated commercial real estate VIEs | 19,933 | $ 0 | |
SAFT 2013-1 Securitization Entity | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Residential mortgage loan UPB and other collateral | $ 10,809,466 | $ 12,137,481 | |
Weighted average delinquency | 4.20% | 4.90% | |
Net credit losses | $ 167,519 | $ 170,439 | |
Face amount of debt held by third parties | 9,840,864 | 11,228,461 | |
Carrying value of bonds retained by Rithm Capital | 867,134 | 920,904 | |
Cash flows received by Rithm Capital on these bonds | $ 113,527 | $ 173,765 | |
Number of days delinquent (in days) | 60 days |
VARIABLE INTEREST ENTITIES - Ot
VARIABLE INTEREST ENTITIES - Others' Interest in Equity of Consumer Loan Companies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | ||
Noncontrolling Interest [Line Items] | |||||||||
Total consolidated equity | $ 7,267,963 | $ 7,061,626 | $ 7,267,963 | $ 7,061,626 | $ 7,194,684 | $ 7,010,068 | $ 7,062,998 | $ 6,669,380 | |
Others’ interest in equity of consolidated subsidiary | [1] | 59,907 | 59,907 | $ 67,067 | |||||
Net income (loss) | 221,191 | 154,190 | 697,825 | 877,452 | |||||
Others’ interest in net income (loss) of consolidated subsidiary | $ 4,848 | $ 7,307 | $ 10,437 | $ 27,098 | |||||
Advance Purchaser | Corporate Joint Venture | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Rithm Capital’s percentage ownership | 89.30% | 89.30% | 89.30% | 89.30% | 89.30% | ||||
VIE, consolidated | Advance Purchaser | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Others’ ownership interest | 10.70% | 10.70% | 10.70% | ||||||
VIE, consolidated | Advance Purchaser | Weighted Average | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Others’ ownership interest | 10.70% | 10.70% | 10.70% | 10.70% | |||||
VIE, consolidated | Newrez Joint Ventures | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Others’ ownership interest | 49.50% | 49.50% | 49.50% | ||||||
VIE, consolidated | Newrez Joint Ventures | Weighted Average | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Others’ ownership interest | 49.50% | 49.50% | 49.50% | 49.50% | |||||
VIE, consolidated | Consumer Loan SPVs | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Others’ ownership interest | 46.50% | 46.50% | 46.50% | ||||||
VIE, consolidated | Consumer Loan SPVs | Weighted Average | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Others’ ownership interest | 46.50% | 46.50% | 46.50% | 46.50% | |||||
VIE, consolidated | Advance Purchaser | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Total consolidated equity | $ 117,966 | $ 117,966 | $ 114,180 | ||||||
Others’ interest in equity of consolidated subsidiary | 12,600 | 12,600 | 12,193 | ||||||
Net income (loss) | 13,229 | $ (1,296) | 19,786 | $ 1,219 | |||||
Others’ interest in net income (loss) of consolidated subsidiary | 1,414 | (139) | 2,113 | 130 | |||||
VIE, consolidated | Newrez Joint Ventures | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Total consolidated equity | 18,330 | 18,330 | 25,124 | ||||||
Others’ interest in equity of consolidated subsidiary | 9,073 | 9,073 | 12,437 | ||||||
Net income (loss) | 544 | 952 | 1,238 | 4,374 | |||||
Others’ interest in net income (loss) of consolidated subsidiary | 269 | 471 | 613 | 2,165 | |||||
VIE, consolidated | Consumer Loan SPVs | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Total consolidated equity | 82,007 | 82,007 | 91,263 | ||||||
Others’ interest in equity of consolidated subsidiary | 38,234 | 38,234 | $ 42,437 | ||||||
Net income (loss) | 6,806 | 15,000 | 16,582 | 53,340 | |||||
Others’ interest in net income (loss) of consolidated subsidiary | $ 3,165 | $ 6,975 | $ 7,711 | $ 24,803 | |||||
[1]The Company's Consolidated Balance Sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations and liabilities of the VIE for which creditors do not have recourse to the primary beneficiary (Rithm Capital). As of September 30, 2023 and December 31, 2022, total assets of consolidated VIEs were $2.2 billion and $2.3 billion, respectively, and total liabilities of consolidated VIEs were $1.8 billion and $1.8 billion, respectively. See Note 20 for further details. |
EQUITY AND EARNINGS PER SHARE -
EQUITY AND EARNINGS PER SHARE - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Sep. 14, 2023 | Feb. 21, 2023 | Aug. 05, 2022 | Sep. 30, 2021 | Feb. 29, 2020 | Aug. 31, 2019 | Jul. 31, 2019 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Feb. 23, 2023 | Dec. 15, 2022 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||||||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | ||||||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||
Number of shares issued (in shares) | 51,964,000 | 51,964,000 | |||||||||||||
Shares repurchased (in shares) | 0 | ||||||||||||||
Dividends declared on preferred stock (in dollars per share) | $ 1.76 | $ 1.76 | $ 5.26 | $ 5.26 | |||||||||||
Options granted (in shares) | 0 | ||||||||||||||
Total stock-based compensation expenses | $ 8,900,000 | ||||||||||||||
Vested (in shares) | 192,678 | ||||||||||||||
Forfeited (in shares) | 69,009 | ||||||||||||||
Aggregate unrecognized compensation cost | $ 31,100,000 | $ 31,100,000 | |||||||||||||
Weighted-average period | 1 year 2 months 12 days | ||||||||||||||
Warrant | |||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||||||
Exercised (in shares) | 25,600,000 | ||||||||||||||
Warrant | Share-based Payment Arrangement, Nonemployee | |||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||||||
Options granted (in shares) | 43,400,000 | ||||||||||||||
Exercised (in shares) | 22,400,000 | ||||||||||||||
Warrant | Share-based Payment Arrangement, Nonemployee | Exercise Price One | |||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||||||
Shares exercisable (in shares) | 24,600,000 | ||||||||||||||
Exercise price (in dollars per share) | $ 6.11 | ||||||||||||||
Warrant | Share-based Payment Arrangement, Nonemployee | Exercise Price Two | |||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||||||
Shares exercisable (in shares) | 18,900,000 | ||||||||||||||
Exercise price (in dollars per share) | $ 7.94 | ||||||||||||||
Restricted Stock Units (RSUs) | |||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||||||
Grant date fair value | $ 12,500,000 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Vested (in shares) | 0 | ||||||||||||||
Forfeited (in shares) | 23,003 | ||||||||||||||
Phantom Share Units (PSUs) | |||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||||||
Grant date fair value | $ 23,100,000 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Vested (in shares) | 0 | ||||||||||||||
Forfeited (in shares) | 46,006 | ||||||||||||||
RSU And PSU | |||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||||||
Vested (in shares) | 0 | ||||||||||||||
Fair value of the RSU and PSU awards forfeited | $ 600,000 | ||||||||||||||
Restricted Stock | |||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||||||
Vested (in shares) | 192,678 | ||||||||||||||
Vested, fair value | $ 700,000 | ||||||||||||||
Forfeited (in shares) | 0 | ||||||||||||||
7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||||||
Number of shares issued (in shares) | 6,200,000 | 6,200,000 | |||||||||||||
Dividends declared on preferred stock (in dollars per share) | $ 0.47 | $ 0.47 | 0.47 | $ 1.41 | 1.41 | ||||||||||
Interest rate | 7.50% | 7.50% | |||||||||||||
Preferred dividends | $ 2,900,000 | ||||||||||||||
7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||||||
Number of shares issued (in shares) | 11,261,000 | 11,261,000 | |||||||||||||
Dividends declared on preferred stock (in dollars per share) | $ 0.45 | 0.45 | 0.45 | $ 1.34 | 1.34 | ||||||||||
Interest rate | 7.125% | 7.125% | |||||||||||||
Preferred dividends | $ 5,000,000 | ||||||||||||||
6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||||||
Number of shares issued (in shares) | 15,903,000 | 15,903,000 | |||||||||||||
Dividends declared on preferred stock (in dollars per share) | $ 0.40 | 0.40 | 0.40 | $ 1.20 | 1.20 | ||||||||||
Interest rate | 6.375% | 6.375% | |||||||||||||
Preferred dividends | $ 6,300,000 | ||||||||||||||
7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock | |||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||||||
Number of shares issued (in shares) | 18,600,000 | 18,600,000 | |||||||||||||
Dividends declared on preferred stock (in dollars per share) | $ 0.44 | $ 0.44 | $ 0.44 | $ 1.31 | $ 1.31 | ||||||||||
Interest rate | 7% | 7% | |||||||||||||
Preferred dividends | $ 8,100,000 | ||||||||||||||
Common Stock | |||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||||||
Authorized repurchase amount | $ 200,000,000 | ||||||||||||||
Cashless exercise of 2020 warrants (par) | 9,300,000 | ||||||||||||||
Common Stock | Distribution Agreement | |||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||||||
Net proceeds from liquidation | $ 500,000,000 | ||||||||||||||
Number of shares issued (in shares) | 0 | ||||||||||||||
Preferred Stock | |||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||||||||||
Authorized repurchase amount | $ 100,000,000 |
EQUITY AND EARNINGS PER SHARE_2
EQUITY AND EARNINGS PER SHARE - Schedule of Preferred Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 14, 2023 | Sep. 30, 2021 | Feb. 29, 2020 | Aug. 31, 2019 | Jul. 31, 2019 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Class of Stock [Line Items] | ||||||||||
Number of shares issued (in shares) | 51,964 | 51,964 | ||||||||
Liquidation Preference | $ 1,299,104 | $ 1,299,104 | $ 1,299,104 | |||||||
Carrying Value | $ 1,257,254 | $ 1,257,254 | ||||||||
Dividends Declared (in dollars per share) | $ 1.76 | $ 1.76 | $ 5.26 | $ 5.26 | ||||||
Liquidation preference per share (in dollars per share) | $ 25 | $ 25 | ||||||||
7.50% Series A Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Interest rate | 7.50% | 7.50% | ||||||||
Number of shares issued (in shares) | 6,200 | 6,200 | ||||||||
Liquidation Preference | $ 155,002 | $ 155,002 | ||||||||
Issuance Discount | 3.15% | |||||||||
Carrying Value | $ 149,822 | $ 149,822 | ||||||||
Dividends Declared (in dollars per share) | $ 0.47 | $ 0.47 | 0.47 | $ 1.41 | 1.41 | |||||
7.125% Series B Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Interest rate | 7.125% | 7.125% | ||||||||
Number of shares issued (in shares) | 11,261 | 11,261 | ||||||||
Liquidation Preference | $ 281,518 | $ 281,518 | ||||||||
Issuance Discount | 3.15% | |||||||||
Carrying Value | $ 272,654 | $ 272,654 | ||||||||
Dividends Declared (in dollars per share) | 0.45 | $ 0.45 | 0.45 | $ 1.34 | 1.34 | |||||
6.375% Series C Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Interest rate | 6.375% | 6.375% | ||||||||
Number of shares issued (in shares) | 15,903 | 15,903 | ||||||||
Liquidation Preference | $ 397,584 | $ 397,584 | ||||||||
Issuance Discount | 3.15% | |||||||||
Carrying Value | $ 385,289 | $ 385,289 | ||||||||
Dividends Declared (in dollars per share) | $ 0.40 | $ 0.40 | 0.40 | $ 1.20 | 1.20 | |||||
7.00% Series D Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Interest rate | 7% | 7% | ||||||||
Number of shares issued (in shares) | 18,600 | 18,600 | ||||||||
Liquidation Preference | $ 465,000 | $ 465,000 | ||||||||
Issuance Discount | 3.15% | |||||||||
Carrying Value | $ 449,489 | $ 449,489 | ||||||||
Dividends Declared (in dollars per share) | $ 0.44 | $ 0.44 | $ 0.44 | $ 1.31 | $ 1.31 |
EQUITY AND EARNINGS PER SHARE_3
EQUITY AND EARNINGS PER SHARE - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 14, 2023 | Jun. 23, 2023 | Mar. 17, 2023 | Dec. 15, 2022 | Sep. 22, 2022 | Jun. 17, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Dividends Payable [Line Items] | ||||||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 | ||||||
Total Amounts Distributed | $ 120.8 | $ 120.8 | $ 120.8 | $ 118.6 | $ 118.4 | $ 116.7 | ||||
Quarterly Dividend | ||||||||||
Dividends Payable [Line Items] | ||||||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 |
EQUITY AND EARNINGS PER SHARE_4
EQUITY AND EARNINGS PER SHARE - Schedule of Warrants (Details) - $ / shares | 9 Months Ended | |
Feb. 21, 2023 | Sep. 30, 2023 | |
Initial | ||
Beginning balance (in shares) | 578,034 | |
Granted (in shares) | 3,645,987 | |
Ending balance (in shares) | 4,257,486 | |
Warrant | ||
Initial | ||
Exercised (in shares) | (25,600,000) | |
Share-based Payment Arrangement, Nonemployee | Warrant | ||
Initial | ||
Beginning balance (in shares) | 22,400,000 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (22,400,000) | |
Expired (in shares) | 0 | |
Ending balance (in shares) | 0 | |
Adjusted Weighted Average Exercise Price (per share) | ||
Beginning balance (in dollars per share) | $ 6.1 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 6.1 | |
Expired (in dollars per share) | $ 0 | |
Share-based Payment Arrangement, Nonemployee | Adjusted Warrant | ||
Initial | ||
Beginning balance (in shares) | 25,600,000 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (25,600,000) | |
Expired (in shares) | 0 | |
Ending balance (in shares) | 0 |
EQUITY AND EARNINGS PER SHARE_5
EQUITY AND EARNINGS PER SHARE - Options Outstanding by Issuance (Details) - shares | Sep. 30, 2023 | Dec. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options (in shares) | 21,473,990 | 21,476,990 |
Held by Former Manager | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options (in shares) | 21,471,990 | |
Issued to the independent directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options (in shares) | 2,000 |
EQUITY AND EARNINGS PER SHARE_6
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options - Period End (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share price (in dollars per share) | $ 9.29 | |
Number of unexercised options (in shares) | 21,473,990 | |
Options exercisable (in shares) | 20,924,817 | |
Weighted average exercise price (in dollars per share) | $ 0 | |
Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 2,000 | |
Options exercisable (in shares) | 2,000 | |
Weighted average exercise price (in dollars per share) | $ 10.70 | |
Intrinsic value of exercisable options | $ 0 | |
Former Manager | 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 1,130,916 | |
Options exercisable (in shares) | 1,130,916 | |
Weighted average exercise price (in dollars per share) | $ 12.84 | |
Intrinsic value of exercisable options | $ 0 | |
Former Manager | 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 5,320,000 | |
Options exercisable (in shares) | 5,320,000 | |
Weighted average exercise price (in dollars per share) | $ 15.57 | |
Intrinsic value of exercisable options | $ 0 | |
Former Manager | 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 6,351,000 | |
Options exercisable (in shares) | 6,351,000 | |
Weighted average exercise price (in dollars per share) | $ 14.95 | |
Intrinsic value of exercisable options | $ 0 | |
Former Manager | 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 1,619,739 | |
Options exercisable (in shares) | 1,619,739 | |
Weighted average exercise price (in dollars per share) | $ 16.30 | |
Intrinsic value of exercisable options | $ 0 | |
Former Manager | 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 7,050,335 | |
Options exercisable (in shares) | 6,501,162 | |
Weighted average exercise price (in dollars per share) | $ 9.35 | |
Intrinsic value of exercisable options | $ 0 |
EQUITY AND EARNINGS PER SHARE_7
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Initial | ||
Beginning balance (in shares) | 21,476,990 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Expired (in shares) | (3,000) | |
Ending balance (in shares) | 21,473,990 | |
Adjusted Weighted Average Exercise Price (per share) | ||
Outstanding (in dollars per share) | $ 0 | |
Granted (in dollars per share) | $ 0 | |
Exercised (in dollars per share) | 0 | |
Expired (in dollars per share) | $ 14.24 |
EQUITY AND EARNINGS PER SHARE_8
EQUITY AND EARNINGS PER SHARE - Schedule of Granted, Forfeited or Vested (Details) | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | 578,034 |
Granted (in shares) | 3,645,987 |
Accrued RSU and PSU dividend equivalents (in shares) | 295,152 |
Vested (in shares) | (192,678) |
Forfeited (in shares) | (69,009) |
Ending balance (in shares) | 4,257,486 |
RSAs | |
Number of Shares | |
Beginning balance (in shares) | 578,034 |
Granted (in shares) | 0 |
Accrued RSU and PSU dividend equivalents (in shares) | 0 |
Vested (in shares) | (192,678) |
Forfeited (in shares) | 0 |
Ending balance (in shares) | 385,356 |
Grant Date Price | |
Beginning balance (in dollars per share) | $ / shares | $ 8.65 |
Granted (in dollars per share) | $ / shares | 0 |
Accrued RSU and PSU dividend equivalents (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 8.65 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | |
RSUs | |
Number of Shares | |
Beginning balance (in shares) | 0 |
Granted (in shares) | 1,215,329 |
Accrued RSU and PSU dividend equivalents (in shares) | 98,384 |
Vested (in shares) | 0 |
Forfeited (in shares) | (23,003) |
Ending balance (in shares) | 1,290,710 |
Grant Date Price | |
Beginning balance (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 9.52 |
Accrued RSU and PSU dividend equivalents (in dollars per share) | $ / shares | 9.52 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 9.52 |
Ending balance (in dollars per share) | $ / shares | |
PSUs | |
Number of Shares | |
Beginning balance (in shares) | 0 |
Granted (in shares) | 2,430,658 |
Accrued RSU and PSU dividend equivalents (in shares) | 196,768 |
Vested (in shares) | 0 |
Forfeited (in shares) | (46,006) |
Ending balance (in shares) | 2,581,420 |
Grant Date Price | |
Beginning balance (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 9.52 |
Accrued RSU and PSU dividend equivalents (in dollars per share) | $ / shares | 9.52 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 9.52 |
Ending balance (in dollars per share) | $ / shares |
EQUITY AND EARNINGS PER SHARE_9
EQUITY AND EARNINGS PER SHARE - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 221,191 | $ 154,190 | $ 697,825 | $ 877,452 |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 4,848 | 7,307 | 10,437 | 27,098 |
Dividends on preferred stock | 22,394 | 22,427 | 67,184 | 67,315 |
Net income attributable to common stockholders - basic | 193,949 | 124,456 | 620,204 | 783,039 |
Net income attributable to common stockholders - diluted | $ 193,949 | $ 124,456 | $ 620,204 | $ 783,039 |
Basic weighted average shares of common stock outstanding (in shares) | 483,214,061 | 467,974,962 | 481,503,762 | 467,192,721 |
Dilutive effect of stock options, restricted stock, common stock purchase warrants, RSUs and PSUs (in shares) | 1,136,227 | 8,821,795 | 2,026,465 | 14,707,408 |
Diluted weighted average shares of common stock outstanding (in shares) | 484,350,288 | 476,796,757 | 483,530,227 | 481,900,129 |
Basic earnings per share attributable to common stockholders (in dollars per share) | $ 0.40 | $ 0.27 | $ 1.29 | $ 1.68 |
Diluted earnings per share attributable to common stockholders (in dollars per share) | $ 400 | $ 260 | $ 1,280 | $ 1,620 |
Antidilutive shares (in shares) | 0 | 0 | 0 | 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) property | |
Loss Contingencies [Line Items] | |
Estimated liability, representation and warranties | $ 56.9 |
Residential mortgage loan repurchase liability | 1,400 |
Committed to fund | $ 5.1 |
Single Family | |
Loss Contingencies [Line Items] | |
Number of units completed | property | 108 |
Crowne Property Acquisitions, LLC | Single Family | |
Loss Contingencies [Line Items] | |
Number of properties | property | 371 |
Aggregate purchase price | $ 95.6 |
Genesis Acquisition | |
Loss Contingencies [Line Items] | |
Committed to fund | 616.6 |
Unfunded Loan Commitment | Consumer Portfolio Segment | Consumer Loan SPVs | |
Loss Contingencies [Line Items] | |
Financing receivable | $ 185.7 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Related Party - Loan Agreement - Genesis $ in Millions | 1 Months Ended |
Jul. 31, 2023 USD ($) | |
Related Party Transaction [Line Items] | |
Loan agreement amount | $ 86.4 |
Financing receivable term | 36 months |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Current: | |||||
Federal | $ 5,014 | $ 0 | $ 5,030 | $ 0 | |
State and local | 185 | 3 | 306 | 48 | |
Total current income tax expense (benefit) | 5,199 | 3 | 5,336 | 48 | |
Deferred: | |||||
Federal | 41,759 | 18,654 | 75,822 | 250,221 | |
State and local | 5,627 | 3,427 | 11,151 | 47,294 | |
Total deferred income tax expense | 47,386 | 22,081 | 86,973 | 297,515 | |
Total income tax expense (benefit) | 52,585 | $ 22,084 | 92,309 | $ 297,563 | |
Deferred tax liability | $ 798,179 | $ 798,179 | $ 711,855 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Oct. 26, 2023 | Oct. 13, 2023 | Oct. 12, 2023 | Oct. 02, 2023 | Jul. 23, 2023 | Oct. 11, 2023 |
Subsequent Event | Sculptor | ||||||
Subsequent Event [Line Items] | ||||||
Exercise price (in dollars per share) | $ 7.95 | |||||
Aggregate purchase price | $ 27,600,000 | |||||
Number of days issuer is acquired after purchase of warrants | 270 days | |||||
Subsequent Event | Class A | Sculptor | ||||||
Subsequent Event [Line Items] | ||||||
Common stock, ownership percentage | 12.80% | |||||
Common stock with voting interest, ownership percentage | 6.50% | |||||
Subsequent Event | Class A | Sculptor | ||||||
Subsequent Event [Line Items] | ||||||
Number of warrants issued (in shares) | 4,338,015 | |||||
Computershare Mortgage Services Inc | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Business combination, consideration transferred | $ 720,000,000 | |||||
Sculptor | ||||||
Subsequent Event [Line Items] | ||||||
Proposed consideration | $ 639,000,000 | |||||
Sculptor | Class A | ||||||
Subsequent Event [Line Items] | ||||||
Proposed share price (in dollars per share) | $ 11.15 | |||||
Sculptor | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Proposed consideration | $ 719,800,000 | $ 676,000,000 | ||||
Potential Merger termination fee | $ 22,400,000 | $ 20,300,000 | $ 16,600,000 | |||
Sculptor | Subsequent Event | Class A | ||||||
Subsequent Event [Line Items] | ||||||
Proposed share price (in dollars per share) | $ 12.70 | $ 12 | ||||
Sculptor | Subsequent Event | Class A | Consortium | ||||||
Subsequent Event [Line Items] | ||||||
Proposed share price (in dollars per share) | $ 13.50 |