Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 10, 2023 | Jun. 30, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4.3 | ||
Entity Common Stock, Shares Outstanding | 473,730,400 | ||
Documents Incorporated by Reference | The information required by Part III (Items 10, 11, 12, 13 and 14) will be incorporated by reference from the registrant’s Definitive Proxy Statement for its 2023 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A. | ||
Entity Central Index Key | 0001556593 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Common Stock, $0.01 par value per share | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | RITM | ||
Security Exchange Name | NYSE | ||
7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||
Trading Symbol | RITM PR A | ||
Security Exchange Name | NYSE | ||
7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||
Trading Symbol | RITM PR B | ||
Security Exchange Name | NYSE | ||
6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||
Trading Symbol | RITM PR C | ||
Security Exchange Name | NYSE | ||
7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock | ||
Trading Symbol | RITM PR D | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | |||
Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value | [1] | $ 8,889,403 | $ 6,858,803 |
Real estate and other securities | 8,289,277 | 9,396,539 | |
Residential loans and variable interest entity consumer loans, held-for-investment, at fair value | [1] | 816,275 | 1,077,224 |
Residential mortgage loans, held-for-sale ($3,297,271 and $11,214,924 at fair value, respectively) | 3,398,298 | 11,347,845 | |
Single-family rental properties, held-for-investment | 971,313 | 579,607 | |
Mortgage loans receivable, at fair value | 2,064,028 | 1,515,762 | |
Residential mortgage loans subject to repurchase | [2] | 1,219,890 | 1,787,314 |
Cash and cash equivalents | [1] | 1,336,508 | 1,332,575 |
Restricted cash | [1] | 281,126 | 195,867 |
Servicer advances receivable | 2,825,485 | 2,855,148 | |
Receivable for investments sold | 473,126 | 0 | |
Other assets | [1] | 1,914,607 | 2,795,506 |
Total assets | 32,479,336 | 39,742,190 | |
Liabilities | |||
Secured financing agreements | [1] | 11,257,736 | 20,592,884 |
Secured notes and bonds payable ($632,404 and $511,107 at fair value, respectively) | [1] | 10,098,943 | 8,644,810 |
Residential mortgage loan repurchase liability | [2] | 1,219,890 | 1,787,314 |
Unsecured senior notes, net of issuance costs | 545,056 | 543,293 | |
Payable for investments purchased | 731,216 | 0 | |
Due to affiliates | 0 | 17,819 | |
Dividends payable | 129,760 | 127,922 | |
Accrued expenses and other liabilities | [1] | 1,486,667 | 1,358,768 |
Total liabilities | 25,469,268 | 33,072,810 | |
Commitments and Contingencies | |||
Equity | |||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 51,964,122 and 52,210,000 issued and outstanding, $1,299,104 and $1,305,250 aggregate liquidation preference, respectively | 1,257,254 | 1,262,481 | |
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 473,715,100 and 466,758,266 issued and outstanding, respectively | 4,739 | 4,669 | |
Additional paid-in capital | 6,062,019 | 6,059,671 | |
Retained earnings (accumulated deficit) | (418,662) | (813,042) | |
Accumulated other comprehensive income (loss) | 37,651 | 90,253 | |
Total Rithm Capital stockholders’ equity | 6,943,001 | 6,604,032 | |
Noncontrolling interests in equity of consolidated subsidiaries | 67,067 | 65,348 | |
Total Equity | 7,010,068 | 6,669,380 | |
Liabilities and Equity | $ 32,479,336 | $ 39,742,190 | |
[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 December 31, 2022, and December 31, 2021, total assets of consolidated VIEs were $2.3 billion and $2.8 billion, respectively, and total liabilities of consolidated VIEs were $1.8 billion and $2.1 billion, respectively. See Note 21 for further details.[2]See Note 6 for details. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Residential mortgage loans, held-for-sale, at fair value | $ 3,297,271 | $ 11,214,924 |
Notes and bonds payable, fair value | $ 632,404 | $ 511,107 |
Preferred stock, par values (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 | 52,210,000 |
Preferred stock, shares outstanding (in shares) | 51,964,122 | 52,210,000 |
Liquidation preference | $ 1,299,104 | $ 1,305,250 |
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) | 473,715,100 | 466,758,266 |
Common stock, shares outstanding ending balance (in shares) | 473,715,100 | 466,758,266 |
Assets | $ 32,479,336 | $ 39,742,190 |
Liabilities | 25,469,268 | 33,072,810 |
Variable Interest Entity, Primary Beneficiary | ||
Residential mortgage loans, held-for-sale, at fair value | 844,000 | 798,644 |
Assets | 2,257,091 | 2,757,786 |
Liabilities | $ 1,778,901 | $ 2,141,799 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ 1,831,964 | $ 1,559,554 | $ 1,642,272 |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(631,120), $(1,192,646) and $(1,583,628), respectively) | 732,750 | (575,353) | (2,168,909) |
Servicing revenue, net | 2,564,714 | 984,201 | (526,637) |
Interest income | 1,075,981 | 810,896 | 794,965 |
Gain on originated residential mortgage loans, held-for-sale, net | 1,086,232 | 1,826,909 | 1,399,092 |
Total revenues | 4,726,927 | 3,622,006 | 1,667,420 |
Expenses | |||
Interest expense and warehouse line fees | 791,001 | 497,308 | 584,469 |
General and administrative | 875,428 | 864,028 | 548,441 |
Compensation and benefits | 1,231,446 | 1,159,810 | 571,646 |
Management fee to affiliate | 46,174 | 95,926 | 89,134 |
Termination fee to affiliate | 400,000 | 0 | 0 |
Total operating expenses | 3,344,049 | 2,617,072 | 1,793,690 |
Other income (loss) | |||
Change in fair value of investments, net | 1,108,290 | 11,723 | (148,758) |
Gain (loss) on settlement of investments, net | (1,359,679) | (234,561) | (930,131) |
Other income (loss), net | 131,312 | 181,712 | (135,609) |
Total other income (loss) | (120,077) | (41,126) | (1,214,498) |
Income (loss) before income taxes | 1,262,801 | 963,808 | (1,340,768) |
Income tax expense | 279,516 | 158,226 | 16,916 |
Net income (loss) | 983,285 | 805,582 | (1,357,684) |
Noncontrolling interests in income of consolidated subsidiaries | 28,766 | 33,356 | 52,674 |
Dividends on preferred stock | 89,726 | 66,744 | 54,295 |
Net income (loss) attributable to common stockholders - basic | 864,793 | 705,482 | (1,464,653) |
Net income (loss) attributable to common stockholders - diluted | $ 864,793 | $ 705,482 | $ (1,464,653) |
Net income (loss) per share of common stock | |||
Basic (in dollars per share) | $ 1.84 | $ 1.56 | $ (3.52) |
Diluted (in dollars per share) | $ 1.80 | $ 1.51 | $ (3.52) |
Weighted average number of shares of common stock outstanding | |||
Basic (in shares) | 468,836,718 | 451,276,742 | 415,513,187 |
Diluted (in shares) | 481,636,125 | 467,665,006 | 415,513,187 |
Dividends declared per share of common stock (in dollars per share) | $ 1 | $ 0.90 | $ 0.50 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
MSRs | |||
Realization of cash flows | $ (631,120) | $ (1,192,646) | $ (1,583,628) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Net income (loss) | $ 983,285 | $ 805,582 | $ (1,357,684) |
Other comprehensive income (loss), net of tax: | |||
Net unrealized gain (loss) on available-for-sale securities, net | (52,602) | 29,944 | 123,855 |
Reclassification of net realized (gain) loss on available-for-sale securities, net into net income | 0 | (5,388) | (740,309) |
Comprehensive income (loss) | 930,683 | 830,138 | (1,974,138) |
Comprehensive income (loss) attributable to noncontrolling interests | 28,766 | 33,356 | 52,674 |
Dividends on preferred stock | 89,726 | 66,744 | 54,295 |
Comprehensive income (loss) attributable to common stockholders | $ 812,191 | $ 730,038 | $ (2,081,107) |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Preferred Stock | Common Stock | Total Rithm Capital Stockholders’ Equity | Total Rithm Capital Stockholders’ Equity Cumulative Effect, Period of Adoption, Adjustment | Total Rithm Capital Stockholders’ Equity Preferred Stock | Total Rithm Capital Stockholders’ Equity Common Stock | Preferred Stock | Preferred Stock Preferred Stock | Common Stock | Common Stock Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Common Stock | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit) Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income | Noncontrolling Interests in Equity of Consolidated Subsidiaries | Noncontrolling Interests in Equity of Consolidated Subsidiaries Cumulative Effect, Period of Adoption, Adjustment |
Preferred stock, shares outstanding, beginning balance (in shares) at Dec. 31, 2019 | 17,510,000 | ||||||||||||||||||
Common stock, shares outstanding beginning balance (in shares) at Dec. 31, 2019 | 415,520,780 | ||||||||||||||||||
Equity, beginning balance at Dec. 31, 2019 | $ 7,236,260 | $ 30,453 | $ 7,157,710 | $ 13,658 | $ 423,444 | $ 4,156 | $ 5,498,226 | $ 549,733 | $ 13,658 | $ 682,151 | $ 78,550 | $ 16,795 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
2020 Warrants | 53,462 | 53,462 | 53,462 | ||||||||||||||||
Dividends declared on common stock | (207,667) | (207,667) | (207,667) | 0 | |||||||||||||||
Dividends declared on preferred stock | (54,295) | (54,295) | (54,295) | ||||||||||||||||
Capital contributions | 2,449 | 2,449 | |||||||||||||||||
Capital distributions | (41,800) | (41,800) | |||||||||||||||||
Repurchase of stock (in shares) | (1,000,000) | ||||||||||||||||||
Repurchase of stock | $ (7,462) | $ (7,462) | $ (10) | $ (7,452) | |||||||||||||||
Issuance stock (in shares) | 16,100,000 | 97,394 | |||||||||||||||||
Issuance of stock | $ 389,548 | 1,663 | $ 389,548 | 1,663 | $ 389,548 | $ 1 | 1,662 | ||||||||||||
Director share grants (in shares) | 126,344 | ||||||||||||||||||
Director share grants | 1,211 | 1,211 | $ 1 | 1,210 | |||||||||||||||
Comprehensive income (loss) | |||||||||||||||||||
Net income (loss) | (1,357,684) | (1,410,358) | (1,410,358) | 52,674 | |||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net | 123,855 | 123,855 | 123,855 | ||||||||||||||||
Reclassification of realized (gain) loss on available-for-sale securities, net into net income | (740,309) | (740,309) | (740,309) | ||||||||||||||||
Total comprehensive income (loss) | (1,974,138) | (2,026,812) | 52,674 | ||||||||||||||||
Preferred stock, shares outstanding, ending balance (in shares) at Dec. 31, 2020 | 33,610,000 | ||||||||||||||||||
Common stock, shares outstanding ending balance (in shares) at Dec. 31, 2020 | 414,744,518 | ||||||||||||||||||
Equity, ending balance at Dec. 31, 2020 | $ 5,429,684 | 5,321,016 | $ 812,992 | $ 4,148 | 5,547,108 | (1,108,929) | 65,697 | 108,668 | |||||||||||
Comprehensive income (loss) | |||||||||||||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | ||||||||||||||||||
Dividends declared on common stock | $ (409,595) | (409,595) | (409,595) | 0 | |||||||||||||||
Dividends declared on preferred stock | (66,744) | (66,744) | (66,744) | ||||||||||||||||
Capital distributions | (55,600) | (55,600) | |||||||||||||||||
Issuance stock (in shares) | 18,600,000 | 51,903,346 | |||||||||||||||||
Issuance of stock | $ 449,489 | $ 513,421 | $ 449,489 | $ 513,421 | $ 449,489 | $ 519 | $ 512,902 | ||||||||||||
Purchase of non-controlling interest | (22,523) | (1,447) | (1,447) | (21,076) | |||||||||||||||
Director share grants (in shares) | 110,402 | ||||||||||||||||||
Director share grants | 1,110 | 1,110 | $ 2 | 1,108 | |||||||||||||||
Net income (loss) | 805,582 | 772,226 | 772,226 | 33,356 | |||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net | 29,944 | 29,944 | 29,944 | ||||||||||||||||
Reclassification of realized (gain) loss on available-for-sale securities, net into net income | (5,388) | (5,388) | (5,388) | ||||||||||||||||
Total comprehensive income (loss) | $ 830,138 | 796,782 | 33,356 | ||||||||||||||||
Preferred stock, shares outstanding, ending balance (in shares) at Dec. 31, 2021 | 52,210,000 | 52,210,000 | |||||||||||||||||
Common stock, shares outstanding ending balance (in shares) at Dec. 31, 2021 | 466,758,266 | 466,758,266 | |||||||||||||||||
Equity, ending 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 | (470,413) | (470,413) | (470,413) | ||||||||||||||||
Dividends declared on preferred stock | (89,726) | (89,726) | (89,726) | ||||||||||||||||
Capital distributions | (27,047) | (27,047) | |||||||||||||||||
Repurchase of stock (in shares) | (245,878) | ||||||||||||||||||
Repurchase of stock | (5,227) | (5,227) | $ (5,227) | ||||||||||||||||
Cashless exercise of 2020 Warrants (in shares) | 6,858,347 | ||||||||||||||||||
Cashless exercise of 2020 Warrants | 0 | $ 69 | (69) | ||||||||||||||||
Director share grants and non-cash stock-based compensation (in shares) | 98,487 | ||||||||||||||||||
Director share grants and non-cash stock-based compensation | 2,418 | 2,418 | $ 1 | 2,417 | |||||||||||||||
Comprehensive income (loss) | |||||||||||||||||||
Net income (loss) | 983,285 | 954,519 | 954,519 | 28,766 | |||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net | (52,602) | (52,602) | (52,602) | ||||||||||||||||
Reclassification of realized (gain) loss on available-for-sale securities, net into net income | 0 | ||||||||||||||||||
Total comprehensive income (loss) | $ 930,683 | 901,917 | 28,766 | ||||||||||||||||
Preferred stock, shares outstanding, ending balance (in shares) at Dec. 31, 2022 | 51,964,122 | 51,964,122 | |||||||||||||||||
Common stock, shares outstanding ending balance (in shares) at Dec. 31, 2022 | 473,715,100 | 473,715,100 | |||||||||||||||||
Equity, ending 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 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.20 | $ 1 | $ 0.90 | $ 0.50 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Cash Flows From Operating Activities | |||||
Net income (loss) | $ 983,285 | $ 805,582 | $ (1,357,684) | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||
Change in fair value of investments, net | (1,108,366) | (11,723) | 148,758 | ||
Change in fair value of equity investments | 13,265 | (5,986) | 54,455 | ||
Change in fair value of secured notes and bonds payable | (45,792) | (12,991) | 966 | ||
(Gain) loss on settlement of investments, net | 1,359,679 | 234,561 | 930,131 | ||
(Gain) loss on sale of originated residential mortgage loans, held-for-sale, net | (1,086,232) | (1,826,909) | (1,399,092) | ||
(Gain) loss on transfer of loans to REO | (7,726) | (3,752) | (7,945) | ||
Accretion and other amortization | (91,891) | (49,382) | (151,540) | ||
Provision (reversal) for credit losses on securities, loans and real estate owned | 14,962 | (47,744) | 123,612 | ||
Non-cash portions of servicing revenue, net | (645,361) | 575,353 | 2,168,909 | ||
Deferred tax provision | 271,167 | 151,200 | 15,029 | ||
Mortgage loans originated and purchased for sale, net of fees | (76,420,262) | (130,737,605) | (64,384,894) | ||
Sales proceeds and loan repayment proceeds for residential mortgage loans, held-for-sale | 83,313,008 | 132,834,967 | 65,246,335 | ||
Interest received from servicer advance investments, RMBS, loans and other | 62,375 | 153,539 | 225,467 | ||
Changes in: | |||||
Servicer advances receivable, net | (36,695) | 226,173 | 336,589 | ||
Other assets | 405,469 | 939,953 | 105,585 | ||
Due to affiliates | (17,819) | 8,369 | (94,432) | ||
Accrued expenses and other liabilities | (89,003) | (349,733) | (86,543) | ||
Net cash provided by (used in) operating activities | 6,874,063 | 2,883,872 | 1,873,706 | ||
Cash Flows From Investing Activities | |||||
Business acquisitions, net of cash required | 0 | (1,173,171) | 0 | ||
Purchase of servicer advance investments | (988,847) | (1,286,526) | (1,294,757) | ||
Purchase of MSRs, MSR financing receivables and servicer advances receivable | (542) | (23,015) | (539,889) | ||
Purchase of RMBS | (15,629,483) | (6,099,550) | (23,243,731) | ||
Purchase of residential mortgage loans | (7,182) | 0 | 0 | ||
Purchase of SFR properties, real estate owned and other assets | (416,068) | (1,367,302) | (41,403) | ||
Draws on revolving consumer loans | (29,615) | (29,002) | (33,041) | ||
Net settlement of derivatives | 311,073 | (182,971) | (50,330) | ||
Return of investments in Excess MSRs | 17,701 | 54,037 | 60,112 | ||
Principal repayments from servicer advance investments | 1,033,326 | 1,382,344 | 1,338,101 | ||
Principal repayments from RMBS | 1,091,538 | 2,330,850 | 1,509,560 | ||
Principal repayments from residential mortgage loans | 85,836 | 119,841 | 139,561 | ||
Principal repayments from consumer loans | 140,574 | 214,619 | 229,218 | ||
Principal repayments from MSRs and MSR financing receivables | 1,509 | 1,930 | 80,838 | ||
Proceeds from sale of MSRs and MSR financing receivables | 9,189 | 61,041 | 14,694 | ||
Proceeds from sale of RMBS | 14,565,043 | 8,238,974 | 30,379,637 | ||
Proceeds from sale of residential mortgage loans | 0 | 9,922 | 0 | ||
Proceeds from sale of real estate owned | 14,201 | 54,232 | 79,108 | ||
Net cash provided by (used in) investing activities | 198,253 | 2,306,253 | 8,627,678 | ||
Cash Flows From Financing Activities | |||||
Repayments of secured financing agreements | (55,998,234) | (69,206,600) | (122,526,887) | ||
Repayments of warehouse credit facilities | (83,793,352) | (130,744,991) | (64,520,481) | ||
Net settlement of margin deposits under repurchase agreements and derivatives | 1,460,458 | 249,367 | (75,777) | ||
Repayments of secured notes and bonds payable | (4,696,136) | (8,078,073) | (10,052,948) | ||
Deferred financing fees | (11,062) | (8,385) | (43,705) | ||
Dividends paid on common and preferred stock | (558,301) | (438,544) | (383,567) | ||
Borrowings under secured financing agreements | 54,385,892 | 64,749,425 | 113,228,180 | ||
Borrowings under warehouse credit facilities | 76,069,417 | 129,899,057 | 63,453,603 | ||
Borrowings under secured notes and bonds payable | 6,192,823 | 7,964,077 | 10,517,333 | ||
Issuance of common and preferred stock | 0 | 962,910 | 391,211 | ||
Repurchase of common and preferred stock | (5,227) | 0 | (7,462) | ||
Noncontrolling interest in equity of consolidated subsidiaries - distributions | (27,047) | (78,123) | (39,351) | ||
Payment of contingent consideration | (2,355) | (12,276) | (51,994) | ||
Net cash provided by (used in) financing activities | (6,983,124) | (4,742,156) | (10,111,845) | ||
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | 89,192 | 447,969 | 389,539 | ||
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period | 1,528,442 | 1,080,473 | 690,934 | ||
Cash, Cash Equivalents, and Restricted Cash, End of Period | 1,617,634 | 1,528,442 | 1,080,473 | ||
Supplemental Disclosure of Cash Flow Information | |||||
Cash paid during the period for interest | 734,232 | 505,978 | 512,139 | ||
Cash paid during the period for income taxes | 4,012 | 23,506 | 3,629 | ||
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||||
Dividends declared but not paid on common and preferred stock | 140,984 | 139,170 | 97,306 | ||
Transfer from residential mortgage loans to real estate owned and other assets | 14,936 | 30,020 | 69,812 | ||
Real estate securities retained from loan securitizations | 206,082 | 173,631 | 518,515 | ||
Residential mortgage loans subject to repurchase | 1,219,890 | [1] | 1,787,314 | [1] | 1,452,005 |
Purchase of Agency RMBS, settled after quarter-end | 731,216 | 0 | 0 | ||
Cashless exercise of 2020 Warrants | 69 | 0 | 0 | ||
Warrants issued with term loan | 0 | 0 | 53,462 | ||
Purchase of investments, primarily Agency and Non-Agency RMBS, settled after year end | 0 | 0 | 154 | ||
Sale of investments, primarily Agency RMBS settled after year end | 0 | 0 | 4,180 | ||
MSR purchase price holdback | 0 | 0 | (45,013) | ||
Seller financing in Genesis acquisition | $ 0 | $ 1,256,279 | $ 0 | ||
[1]See Note 6 for details. |
BUSINESS AND ORGANIZATION
BUSINESS AND ORGANIZATION | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS AND ORGANIZATION | BUSINESS AND ORGANIZATION In August 2022, New Residential Investment Corp. (“New Residential” or “NRZ”) changed its name to Rithm Capital Corp. (together with its consolidated subsidiaries, “Rithm Capital,” or the “Company”). In addition, the Company’s ticker symbol on the New York Stock Exchange changed from “NRZ” to “RITM.” 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 (“Fortress”). 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. Refer to Note 26 for further discussion. Rithm Capital is a Delaware corporation that was formed as a limited liability company in September 2011 (commenced operations on December 8, 2011) for the purpose of making real estate related investments. Rithm Capital is an independent publicly traded REIT primarily focused on providing capital and services to the mortgage and financial services industries. Rithm Capital’s investment portfolio is composed of mortgage servicing related assets (full and excess MSRs and servicer advances), residential securities (and associated call rights), loans, and single family rental properties. 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”) (together with Newrez, “Mortgage Company”), and Genesis Capital LLC (“Genesis”), as well as investments in affiliated businesses that provide mortgage related services. 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 Notes 2 and 25 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 U.S. and the District of Columbia. NRM and the Mortgage Company are also approved to service mortgage loans on behalf of investors, including the Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”) (collectively, Government Sponsored Enterprises or “GSEs”) and, in the case of the Mortgage Company, Government National Mortgage Association (“Ginnie Mae”). The Mortgage Company is also eligible to perform servicing on behalf of other servicers (subservicing) and investors. The Mortgage Company originates, sells and securitizes conventional (conforming to the underwriting standards of Fannie Mae or Freddie Mac; collectively referred to as “Agency” loans), government-insured Federal Housing Administration (“FHA”) and Department of Veterans Affairs (“VA”), and U.S. Department of Agriculture (“USDA”) and non-qualified (“Non-QM”) residential mortgage loans. The GSEs or Ginnie Mae guarantee securitizations are completed under their applicable policies and guidelines. Rithm Capital 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 published by FHA, VA, USDA, Fannie Mae, Freddie Mac and Ginnie Mae. 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 growing single-family rental strategy. Rithm Capital, through its wholly-owned subsidiary Guardian Asset Management, provides property preservation and maintenance services for residential properties. Services offered include repairs, bids, inspections, landscaping, janitorial, inspections, and HOA and utility payment services. As of December 31, 2022, 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. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting — The accompanying consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP’’ or “U.S. GAAP”). 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, financial and investing decisions of the entity, as well as those entities deemed to be variable interest entities (“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 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. Restructuring Charges — The termination fee payment to the Former Manager under the Internalization Agreement is recorded within Termination Fee to Affiliate in the Consolidated Statements of Income. See Note 26 for additional discussion of the restructuring charges related to the Internalization. Risks and Uncertainties — In the normal course of business, Rithm Capital encounters primarily two significant types of economic risk: credit and market. 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 industries are operating 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. Business Combinations and Assets Acquisitions — When the assets acquired and liabilities assumed constitute a business, then the acquisition is a business combination. If substantially all of the fair value of the gross asset acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the asset is not considered a business. Business combinations are accounted for under ASC 805, Business Combinations , (“ASC 805”) using the acquisition method which requires, among other things, that the assets acquired and liabilities assumed be recognized at fair value as of the acquisition date. In a business combination, the initial allocation of the purchase price is considered preliminary and therefore subject to change until the end of the measurement period (up to one year from the acquisition date). Goodwill is calculated as the excess of the consideration transferred over the net assets acquired that meet the criteria for separate recognition and represents the estimated future economic benefits arising from these and other assets acquired that could not be individually identified or do not qualify for recognition as a separate asset. Likewise, a bargain purchase gain is recognized in current earnings when the aggregate fair value of the consideration transferred and any noncontrolling interests in the acquiree is less than the fair value of the identifiable net assets acquired. Acquisition related costs are expensed as incurred. The results of operations of acquired businesses are included from the date of acquisition. Common control transactions include a transfer of net assets or an exchange of equity interests between entities under the control of the same parent. Common control transactions have characteristics that are similar to a business combination but do not meet the requirements to be accounted for as a business combination. The accounting and reporting for a transaction between entities under common control is addressed in the ASC 805-50, Transactions Between Entities Under Common Control , which requires that the receiving entity recognize the net assets received at their historical carrying amounts. Investment Consolidation and Transfers of Financial Assets — For each investment made, the Company evaluates the underlying entity that issued the securities acquired or to which the Company makes a loan to determine the appropriate accounting. A similar analysis is performed for each entity with which the Company enters into an agreement for management, servicing or related services. In performing the analysis, the Company refers to guidance in ASC 810-10, Consolidation . In situations where the Company is the transferor of financial assets, the Company refers to the guidance in ASC 860-10, Transfers and Servicing . In VIEs, an entity is subject to consolidation under ASC 810-10 if the equity investors either do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support, are unable to direct the entity’s activities or are not exposed to the entity’s losses or entitled to its residual returns. VIEs within the scope of ASC 810-10 are required to be consolidated by their primary beneficiary. The primary beneficiary of a VIE is determined to be the party that has both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. This determination can sometimes involve complex and subjective analyses. Further, ASC 810-10 also requires ongoing assessments of whether an enterprise is the primary beneficiary of a VIE. In accordance with ASC 810-10, all transferees, including variable interest entities, must be evaluated for consolidation. If the Company determines that consolidation is not required, it will then assess whether the transfer of the underlying assets would qualify as a sale, should be accounted for as secured financings under GAAP, or should be accounted for as an equity method investment, depending on the circumstances. A Special Purpose Entity (“SPE”) is an entity designed to fulfill a specific limited need of the company that organized it. SPEs are often used to facilitate transactions that involve securitizing financial assets or resecuritizing previously securitized financial assets. The objective of such transactions may include obtaining non-recourse financing, obtaining liquidity or refinancing the underlying securitized financial assets on improved terms. Securitization involves transferring assets to an SPE to convert all or a portion of those assets into cash before they would have been realized in the normal course of business through the SPE’s issuance of debt or equity instruments. Investors in an SPE usually have recourse only to the assets in the SPE and depending on the overall structure of the transaction, may benefit from various forms of credit enhancement, such as over-collateralization in the form of excess assets in the SPE, priority with respect to receipt of cash flows relative to holders of other debt or equity instruments issued by the SPE, or a line of credit or other form of liquidity agreement that is designed with the objective of ensuring that investors receive principal and/or interest cash flow on the investment in accordance with the terms of their investment agreement. The Company may periodically enter into transactions in which it transfers assets to a third party. Upon a transfer of financial assets, the Company will sometimes retain or acquire subordinated interests in the related assets. Pursuant to ASC 860-10, a determination must be made as to whether a transferor has surrendered control over transferred financial assets. That determination must consider the transferor’s continuing involvement in the transferred financial asset, including all arrangements or agreements made contemporaneously with, or in contemplation of, the transfer, even if they were not entered into at the time of the transfer. The financial components approach under ASC 860-10 limits the circumstances in which a financial asset, or portion of a financial asset, should be derecognized when the transferor has not transferred the entire original financial asset to an entity that is not consolidated with the transferor in the financial statements being presented and/or when the transferor has continuing involvement with the transferred financial asset. It defines the term “participating interest” to establish specific conditions for reporting a transfer of a portion of a financial asset as a sale. Under ASC 860-10, after a transfer of financial assets that meets the criteria for treatment as a sale-legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint and transferred control-an entity recognizes the financial and servicing assets it acquired or retained and the liabilities it has incurred, derecognizes financial assets it has sold and derecognizes liabilities when extinguished. The transferor would then determine the gain or loss on sale of financial assets by allocating the carrying value of the underlying mortgage between securities or loans sold and the interests retained based on their fair values. The gain or loss on sale is the difference between the cash proceeds from the sale and the amount allocated to the securities or loans sold. When a transfer of financial assets does not qualify for sale accounting, ASC 860-10 requires the transfer to be accounted for as a secured borrowing with a pledge of collateral. From time to time, the Company may securitize mortgage loans it holds if such financing is available. Depending upon the structure of the securitization transaction, these transactions will be recorded in accordance with ASC 860-10 and will be accounted for as either a sale and the loans will be removed from the Consolidated Balance Sheets or as a financing and the loans will remain on the Consolidated Balance Sheets. ASC 860-10 is a standard that may require the Company to exercise significant judgment in determining whether a transaction should be recorded as a sale or a financing. 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. Excess MSRs — Excess MSRs refer to the excess servicing spread related to mortgage servicing rights, whose underlying collateral is securitized in a trust. Upon acquisition, Rithm Capital has elected to record each of such investments at fair value. Rithm Capital elected to record its investments at fair value in order to provide users of the financial statements with better information regarding the effects of prepayment risk and other market factors on Excess MSRs. Under this election, Rithm Capital records a valuation adjustment on its Excess MSRs on a quarterly basis to recognize the changes in fair value in net income. Excess MSRs are aggregated into pools as applicable; each pool of Excess MSRs is accounted for in the aggregate. Interest income for Excess MSRs is accreted into earnings on an effective yield or “interest” method, based upon the expected excess mortgage servicing amount through the expected life of the underlying mortgages. Changes to expected cash flows result in a cumulative retrospective adjustment, which will be recorded in the period in which the change in expected cash flows occurs. Under the retrospective method, the interest income recognized for a reporting period is measured as the difference between the amortized cost basis at the end of the period and the amortized cost basis at the beginning of the period, plus any cash received during the period. The amortized cost basis is calculated as the present value of estimated future cash flows using an effective yield, which is the yield that equates all past actual and current estimated future cash flows to the initial investment. In addition, Rithm Capital’s policy is to recognize interest income only on its Excess MSRs in existing eligible underlying mortgages. The difference between the fair value of Excess MSRs and their amortized cost basis is recorded as Change in Fair Value of Investments. Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the Excess MSRs, and therefore may differ from their effective yields. Excess MSRs is grouped and presented as part of Other Assets on the Consolidated Balance Sheets. MSRs and MSR Financing Receivables — MSRs represent the contractual right to service residential mortgage loans. The Company recognizes MSRs created through the sale of loans it originates. Under the accounting guidance for transfers and servicing, the Company initially measures a mortgage servicing asset that qualifies for separate recognition at fair value on the date of transfer. Rithm Capital elected to record its investments at fair value in order to provide users of the financial statements with better information regarding the effects of prepayment risk and other market factors on MSRs. Under this election, Rithm Capital records a valuation adjustment on its MSRs on a quarterly basis to recognize the changes in fair value in net income. MSRs are aggregated into pools as applicable; each pool of MSRs is accounted for in the aggregate. Income from MSRs is recorded in Servicing Revenue, Net and comprises (i) income from the MSRs, plus or minus (ii) the mark-to-market on the MSRs including change in fair value due to realization of cash flows. Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the MSRs. In certain cases, Rithm Capital has legally purchased MSRs or the right to the economic interest in MSRs; however, Rithm Capital has determined that the purchase agreement would not be treated as a sale under GAAP. Therefore, rather than recording an investment in MSRs, Rithm Capital records an investment in MSR Financing Receivables. Income from this investment (net of subservicing fees) is recorded as interest income and is grouped and presented as part of Servicing Revenue, Net in the Consolidated Statements of Income. Additionally, Rithm Capital has elected to measure MSR Financing Receivables at fair value, with changes in fair value flowing through Servicing Revenue, Net in the Consolidated Statements of Income. Servicer Advance Investments — Rithm Capital accounts for its Servicer Advance Investments similarly to its Excess MSRs. Interest income for Servicer Advance Investments is accreted into earnings on an effective yield or “interest” method, based upon the expected aggregate cash flows of the Servicer Advance Investments, including the basic fee component of the related MSR (but excluding any Excess MSR component) through the expected life of the underlying mortgages, net of a portion of the basic fee component of the MSR that Rithm Capital remits to the servicer as compensation for the servicer’s servicing activities. Changes to expected cash flows result in a cumulative retrospective adjustment, which is recorded in the period in which the change in expected cash flows occurs. Refer to “—Excess MSRs” for a description of the retrospective method. Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the Servicer Advance Investments, and therefore may differ from their effective yields. Servicer Advance Investments is grouped and presented as part of Other Assets on the Consolidated Balance Sheets. Real Estate and Other Securities — Agency and Non-Agency RMBS are classified as either available-for-sale or accounted for under the fair value option. The Company determines the appropriate classification of its securities at the time they are acquired and evaluates the appropriateness of such classifications at each balance sheet date. If classified as available-for-sale, investments are carried at fair value, with net unrealized gains or losses reported as a component of accumulated other comprehensive income. If classified under the fair value option, changes in fair value are recorded in the Consolidated Statements of Income as a component of Change in Fair Value of Investments. Fair value is determined under the guidance of ASC 820, Fair Value Measurements and Disclosures . Management’s judgment is used to arrive at the fair value of the Company’s RMBS investments, taking into account prices obtained from third-party pricing providers and other applicable market data. The third-party pricing providers use pricing models that generally incorporate such factors as coupons, primary and secondary mortgage rates, rate reset periods, issuer, prepayment speeds, credit enhancements and expected life of the security. The Company’s application of ASC 820 guidance is discussed in further detail in Note 20. Investment securities transactions are recorded on the trade date. At disposition, the net realized gain or loss is determined on the basis of the cost of the specific investment and is included in net income. There are several different accounting models that may be applicable for purposes of the recognition of interest income on RMBS depending on whether the security is designated as available-for-sale or fair value option. The following accounting models apply to RMBS classified as available-for-sale: (i) RMBS of high credit quality rated ‘AA’ or higher that, at the time of purchase, the Company expects to collect all contractual cash flows and the security cannot be contractually prepaid in such a way that the Company would not recover substantially all of its recorded investment. (ii) Non-Agency RMBS which are not of high credit quality at the time of purchase or that can be contractually prepaid or otherwise settled in such a way that the Company would not recover substantially all of its recorded investment. For RMBS of high credit quality accounted for under (i) above, the Company recognizes interest income by applying the permitted “interest method,” whereby purchase premiums and discounts are amortized and accreted, respectively, as an adjustment to contractual interest income accrued at each security’s stated coupon rate. The interest method is applied at the individual security level based upon each security’s effective interest rate. The Company calculates each security’s effective interest rate at the time of purchase by solving for the discount rate that equates the present value of that security's remaining contractual cash flows (assuming no principal prepayments) to its purchase price. Because each security’s effective interest rate does not reflect an estimate of future prepayments, the Company refers to this manner of applying the interest method as the “contractual effective interest method.” When applying the contractual effective interest method to its investments in RMBS, as principal prepayments occur, a proportional amount of the unamortized premium or discount is recognized in interest income such that the contractual effective interest rate on the remaining security balance is unaffected. For Non-Agency RMBS accounted for under (ii) above, the Company recognizes interest income by applying the required prospective level-yield methodology. Interest income under this methodology is impacted by management judgments around both the amount and timing of credit losses (defaults) and prepayments. Consequently, interest income on these Non-Agency RMBS is recognized based on the timing and amount of cash flows expected to be collected, as opposed to being based on contractual cash flows. These securities are generally purchased at a discount to the principal amount. At the original acquisition date, the Company estimates the timing and amount of cash flows expected to be collected and calculates the present value of those amounts to the Company’s purchase price. In each subsequent balance sheet date, the Company revises its estimates of the remaining timing and amount of cash flows expected to be collected. If there is a positive change in the amount and timing of future cash flows expected to be collected from the previous estimate, the effective interest rate in future accounting periods may increase resulting in an increase in the reported amount of interest income in future periods. A positive change in the amount and timing of future cash flows expected to be collected is considered to have occurred when the net present value of future cash flows expected to be collected has increased from the previous estimate. This can occur from a change in either the timing of when cash flows are expected to be collected (i.e., from changes in prepayment speeds or the timing of estimated defaults) or in the amount of cash flows expected to be collected (i.e., from reductions in estimates of future defaults). If there is a negative or adverse change in the amount and timing of future cash flows expected to be collected from the previous estimate, and the security's fair value is below its amortized cost, an impairment loss equal to the adverse change in cash flows expected to be collected, discounted using the security's effective rate before impairment, is required to be recorded in current period earnings. Additionally, while the effective interest rate used to accrete interest income after an impairment has been recognized will generally be the same, the amount of interest income recorded in future periods will decline because of the reduced balance of the amortized cost basis of the investment to which such effective interest rate is applied. The following accounting models apply to RMBS accounted for under the fair value option: (iii) RMBS of high credit quality rated ‘AA’ or higher that, at the time of purchase, the Company expects to collect all contractual cash flows and the security cannot be contractually prepaid in such a way that the Company would not recover substantially all of its recorded investment. (iv) Non-Agency RMBS which are not of high credit quality at the time of purchase or that can be contractually prepaid or otherwise settled in such a way that the Company would not recover substantially all of its recorded investment. Interest income on RMBS accounted for in (iii) above is recognized based on the stated coupon rate and the outstanding principal amount. The original purchase premium or discount is not amortized or accreted as part of interest income but rather reflected as part of the security’s fair value. Interest income on Non-Agency RMBS accounted for in (iv) above is recognized in accordance with the model described in (ii) above. In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (“CECL”). This new guidance changed how entities measure credit losses for most financial assets that are not measured at fair value with changes in fair value recognized through net income. The Company adopted the new guidance as of January 1, 2020. Subsequent to the adoption of CECL on January 1, 2020, the Company evaluates its RMBS classified as available-for-sale on a quarterly basis to assess whether a decline in the fair value below the amortized cost basis should be recognized in net income or other comprehensive income. The presence of an impairment is based upon a fair value decline below a security’s amortized cost basis and a corresponding adverse change in expected cash flows due to credit related factors as well as non-credit factors, such as changes in interest rates and market spreads. A security is considered to be impaired if the Company (i) intends to sell the security, (ii) will more likely than not be required to sell the security before recovering its cost basis, or (iii) does not expect to recover the security’s entire amortized cost basis, even if the Company does not intend to sell the security, or the Company believes it is more likely than not that it will be required to sell the security before recovering its cost basis. Under these scenarios, the full amount of impairment is recognized currently in net income and the cost basis of the security is adjusted. However, if the Company does not intend to sell the impaired security and it is more likely than not that it will not be required to sell before recovery, the impairment is separated into (i) the estimated amount relating to credit loss, or the credit component, and (ii) the amount relating to all other factors, or the non-credit component. Credit related impairment is recognized as an allowance on the balance sheet with a corresponding adjustment to net income, with the remainder of the loss recognized in accumulated other comprehensive income (loss). The allowance for credit loss as well as adjustment to net income can be reversed for subsequent changes in the estimate of expected credit loss. Impairment has been classified within Provision (Reversal) for Credit Losses on Securities in the Consolidated Statements of Income. Residential Mortgage Loans and Consumer Loans — The Company's loan portfolio primarily consists of residential mortgage and consumer loans. The Company’s loans are classified as (i) held-for-investment at fair value, (ii) held-for-sale at fair value or (iii) held-for-sale at lower of cost or fair value. Loans are also eligible to be accounted for under the fair value option which are recorded on the Consolidated Balance Sheets at fair value and the periodic changes in fair value is recorded as a component of Change in Fair Value of Investments in the Consolidated Statements of Income. When the Company has the intent and ability to hold loans for the foreseeable future or to maturity/payoff, such loans are classified as held for investment. When the Company has the intent to sell loans, such loans are classified as held for sale. For originated residential mortgage loans measured at fair value, Rithm Capital reports the change in the fair value within Gain on Originated Residential Mortgage Loans, Held-for-Sale, Net in the Consolidated Statements of Income. Fair value is generally determined using a market approach by utilizing either (i) the fair value of securities backed by similar residential mortgage loans, adjusted for certain factors to approximate the fair value of a whole residential 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. For acquired residential mortgage loans measured at fair value, Rithm Capital reports the change in the fair value within Change in Fair Value of Investments in the Consolidated Statements of Income. Fair value is generally determined by discounting the expected future cash flows using inputs such as default rates, prepayment speeds and discount rates. For loans measured at the lower of cost or fair value, the Company accounts for any excess of cost over fair value as a valuation allowance and include changes in the valuation allowance in Other Income (Loss) in the Consolidated Statements of Income in the period in which the change occurs. Purchase price discounts or premiums are deferred in a contra loan account until the related loan is sold. The deferred discounts or premiums are an adjustment to the basis of the loan and are included in the quarterly determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. Interest income on mortgage loans is accrued based on the unpaid principal balance and the contractual interest rate. Interest earned on mortgage loans are reported in Interest Income in the Consolidated Statements of Income. If it’s probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the original contractual terms of the loan agreement, or if the loan becomes 90 days delinquent, the Company will reverse all prior accrued and unpaid interest on such mortgage loan. The Company will return loans to accrual status only when we reinstate the loan and there is no significant uncertainty as to collectability. Rithm Capital elected to apply the fair value option for all consumer loans. The fair value option provides an election which allows a company to irrevocably elect fair value for certain financial asset and liabilities on an instrument-by-instrument basis. The Company elected the fair value option for these loans to better align reported results with the underlying economic changes in value of the loans on the Company’s Consolidated Balance Sheets. Unrealized gains (losses) from the change in fair value of consumer loans are recognized in Change in Fair Value of Investments in the Consolidated Statements of Income. Realized gains (losses) are recorded in Gain on Settlement of Investments, Net in the Consolidated Statements of Income. Interest income is recognized over the life of the loan using the effective interest method and is recorded on the accrual basis. The Company’s residential mor |
BUSINESS ACQUISITIONS
BUSINESS ACQUISITIONS | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS ACQUISITIONS | BUSINESS ACQUISITIONS Rithm Capital completed the Caliber and Genesis acquisitions in 2021 as part of its strategy to expand its origination, servicing and asset management capabilities. Rithm Capital accounted for these transactions using the acquisition method which requires, among other things, that the assets acquired and liabilities assumed be recognized at fair value as of the acquisition date. Purchase Price Allocation The following table summarizes the allocation of the total consideration paid to acquire the assets and assume the liabilities of companies acquired: 2021 ($ in millions) Caliber Genesis Total Total Consideration $ 1,318.5 $ 1,634.6 $ 2,953.1 Assets Mortgage servicing rights, at fair value $ 1,507.5 $ — $ 1,507.5 Residential mortgage loans, held-for-sale, at fair value 7,685.7 — 7,685.7 Mortgage loans receivable, at fair value — 1,505.6 1,505.6 Residential mortgage loans subject to repurchase 666.8 — 666.8 Cash and cash equivalents 472.7 16.4 489.1 Restricted cash 30.6 — 30.6 Servicer advance receivable 108.3 — 108.3 Intangible assets (A)(B) 41.0 56.8 97.8 Other assets 609.7 14.5 624.2 Total Assets Acquired $ 11,122.3 $ 1,593.3 $ 12,715.6 Liabilities Secured financing agreements $ 7,090.6 $ — $ 7,090.6 Secured notes and bonds payable 1,121.8 — 1,121.8 Residential mortgage loans repurchase liability 666.8 — 666.8 Accrued expenses and other liabilities 918.6 14.4 933.0 Total Liabilities Assumed $ 9,797.8 $ 14.4 $ 9,812.2 Net Assets $ 1,324.5 $ 1,578.9 $ 2,903.4 Goodwill (bargain purchase gain) $ (6.0) $ 55.7 $ 49.7 (A) Includes intangible assets acquired as part of the Caliber acquisition in the form of purchased technology and trade name/trademarks. These intangibles are being amortized over a finite life of up to seven years. (B) Includes intangible assets acquired as part of the Genesis acquisition in the form of customer relationships, trade name and a license. Customer relationships and the trade name are being amortized over a finite life of nine years and five years, respectively. Rithm Capital has determined that the license has an indefinite useful life. Acquisition of Caliber Home Loans Inc. On April 14, 2021, Rithm Capital entered into a Stock Purchase Agreement (the “SPA”) with LSF Pickens Holdings, LLC (“LSF”), a Delaware limited liability company and an affiliate of Lone Star Funds, and Caliber, a leading mortgage originator and servicer and then-wholly owned subsidiary of LSF. The SPA provided that, upon the terms and subject to the conditions set forth therein, the Company or one of its subsidiaries will purchase all of the issued and outstanding equity interests of Caliber from LSF. On August 23, 2021, Rithm Capital completed its acquisition of all of the outstanding equity interests of Caliber from LSF for a purchase price of $1.318 billion in cash. At acquisition, Rithm Capital recognized a bargain purchase gain of approximately $3.3 million and the amount is grouped and presented as part of Other Income The estimate of fair value of assets and liabilities required the use of significant assumptions and estimates. Critical estimates included, but were not limited to, future expected cash flows, including projected revenues and expenses, and the applicable discount rates. These estimates were based on assumptions that management believes to be reasonable; however, actual results may differ from these estimates. The results of Caliber’s operations have been included in the Company’s Consolidated Statements of Income for the year ended December 31, 2021 from the date of the acquisition and represent $659.8 million of revenue and $25.9 million of net income. Acquisition-related costs are expensed in the period incurred. Rithm Capital recognized $9.6 million of acquisition-related costs that were expensed for the year ended December 31, 2021. These costs are grouped and presented within General and Administrative Expenses in the Consolidated Statements of Income. Intangible assets consist of purchased technology and trademarks/trade names. Rithm Capital amortizes intangible assets on a straight-line basis over their respective useful lives. The weighted average life of the total acquired identifiable intangible assets is 6.6 years. The following table presents the details of identifiable intangible assets acquired: Estimated Useful Life Amount Purchased technology 7 $ 38,545 Trademarks/trade names 1 2,483 Total identifiable intangible assets $ 41,028 Measurement Period Adjustments — The following table summarizes the provisional amounts recognized related to the Caliber acquisition as of September 30, 2021, as well as the measurement period adjustments made in the fourth quarter of 2021: ($ in millions) Acquisition Date Amounts Recognized as of September 30, 2021 Subsequent Adjustments to Fair Value Acquisition Date Amounts Recognized as of December 31, 2021 Total Consideration $ 1,318.5 $ — $ 1,318.5 Assets Mortgage servicing rights, at fair value $ 1,507.5 $ — $ 1,507.5 Residential mortgage loans, held-for-sale, at fair value 7,685.7 — 7,685.7 Residential mortgage loans subject to repurchase 666.8 — 666.8 Cash and cash equivalents 472.7 — 472.7 Restricted cash 30.6 — 30.6 Servicer advance receivable 108.3 — 108.3 Intangible assets 41.0 — 41.0 Other assets (A) 605.4 4.3 609.7 Total Assets Acquired $ 11,118.0 $ 4.3 $ 11,122.3 Liabilities Secured financing agreements $ 7,090.6 $ — $ 7,090.6 Secured notes and bonds payable 1,121.8 — 1,121.8 Residential mortgage loans repurchase liability 666.8 — 666.8 Accrued expenses and other liabilities (A) 917.0 1.6 918.6 Total Liabilities Assumed $ 9,796.2 $ 1.6 $ 9,797.8 Net Assets $ 1,321.8 $ 2.7 $ 1,324.5 Goodwill (bargain purchase gain) $ (3.3) $ (2.7) $ (6.0) (A) The adjustments to Other assets and Accrued expenses and other liabilities primarily reflect the impact on deferred tax assets and related liabilities attributable to certain return to provision adjustments. Unaudited Supplemental Pro Forma Financial Information — The following table presents unaudited pro forma combined revenues and income before income taxes for the year ended December 31, 2021 and 2020 prepared as if the Caliber acquisition had been consummated on January 1, 2020: Year Ended December 31, Pro Forma (in millions) 2021 2020 Revenues $ 5,422.7 $ 4,453.4 Income (loss) before income taxes 1,258.6 (529.9) The unaudited supplemental pro forma financial information reflects, among others, financing adjustments, amortization of intangibles, and transactions costs. The unaudited supplemental pro forma financial information has not been adjusted to reflect all conforming of accounting policies. The unaudited supplemental pro forma financial information does not include any anticipated synergies or other anticipated benefits of the Caliber acquisition and, accordingly, the unaudited supplemental pro forma financial information is not necessarily indicative of either future results of operations or results that might have been achieved had the Caliber acquisition occurred on January 1, 2020, the beginning of the earliest period presented. Acquisition of Genesis Capital LLC On December 20, 2021, Rithm Capital acquired 100% of the outstanding interest of Genesis, a leading mortgage loan lender, along with a related portfolio of loans, from affiliates of Goldman Sachs. Cash consideration for the Genesis acquisition totaled approximately $1.63 billion. The Company recognized goodwill of approximately $55.7 million related to the Genesis acquisition and primarily relates to anticipated synergies, the value of the assembled workforce and intangible assets that do not qualify for separate recognition at the time of the acquisition. Goodwill is reflected within the Mortgage Loans Receivable reporting segment and the amount is grouped and presented as part of Other Assets on the Consolidated Balance Sheets. Purchased goodwill is expected to be deductible for income tax purposes over 15 years. Rithm Capital will assess the goodwill annually during the fourth quarter and in interim periods in case of events or circumstances make it more likely than not that an impairment may have occurred. The estimate of fair value of assets and liabilities required the use of significant assumptions and estimates. Critical estimates included, but were not limited to, future expected cash flows and the applicable discount rates. These estimates were based on assumptions that management believes to be reasonable; however, actual results may differ from these estimates. The results of Genesis’s operations have been included in the Company’s Consolidated Statements of Income for the year ended December 31, 2021 from the date of the acquisition and represent $4.2 million of revenue and $1.4 million of net income. Acquisition-related costs are expensed in the period incurred. Rithm Capital recognized $6.7 million of acquisition-related costs that were expensed for the year ended December 31, 2021. These costs are grouped and presented within General and Administrative expenses in the Consolidated Statements of Income. Intangible assets consist of customer relationships, trade name, and license. Rithm Capital amortizes finite-lived customer relationships and trade name intangible assets on a straight-line basis over their respective useful lives. Rithm Capital has determined that the license has an indefinite useful life. The weighted average life of the total acquired identifiable intangible assets is 8.5 years. The following table presents the details of identifiable intangible assets acquired: Estimated Useful Life Amount Customer relationships 9 $ 44,700 Trade name 5 5,900 License Indefinite 5,500 Total identifiable intangible assets $ 56,100 Unaudited Supplemental Pro Forma Financial Information — The following table presents unaudited pro forma combined revenues and income before income taxes for the year ended December 31, 2021 and 2020 prepared as if the Genesis acquisition had been consummated on January 1, 2020: Year Ended December 31, Pro Forma (in millions) 2021 2020 Revenues $ 3,643.4 $ 1,693.0 Income (loss) before income taxes 981.8 (1,316.1) The unaudited supplemental pro forma financial information reflects, among others, amortization of intangibles and transactions costs. The unaudited supplemental pro forma financial information has not been adjusted to reflect all conforming of accounting policies. The unaudited supplemental pro forma financial information does not include any anticipated synergies or other anticipated benefits of the Genesis acquisition and, accordingly, the unaudited supplemental pro forma financial information is not necessarily indicative of either future results of operations or results that might have been achieved had the Genesis acquisition occurred on January 1, 2020, the beginning of the earliest period presented. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING At December 31, 2022, 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 19) and related interest expense. In 2021, Rithm Capital reevaluated the composition and number of its reportable segments based on the significance of certain business activities to its operations and performance evaluation, which drive resource allocation. Based on this reevaluation, the Company revised its presentation and composition of reportable segments. In the beginning of the third quarter of 2021, MSR assets serviced by Newrez (previously reflected within the MSR Related Investments Segment) and Caliber are reflected within Servicing. MSRs owned by third-parties but serviced by the Company’s subsidiaries are also reflected within Servicing. MSR assets sub-serviced by third-parties (PHH, LoanCare, Flagstar, Valon and Mr. Cooper) continue to be reflected as part of the MSR Related Investments. During the fourth quarter of 2021, the Mortgage Loans Receivable segment was added to reflect Genesis and consists of a platform that originates construction, renovation and bridge loans. Segment information for prior periods have been restated to reflect these changes. 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 (A) Real Estate Properties and Residential Mortgage Loans Consumer Mortgage Loans Receivable Corporate Total Year Ended December 31, 2022 Servicing fee revenue, net and interest income from MSRs and MSR financing $ — $ 1,431,947 $ 400,017 $ 1,831,964 $ — $ — $ — $ — $ — $ 1,831,964 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(631,120)) — 731,222 1,528 732,750 — — — — — 732,750 Servicing revenue, net — 2,163,169 401,545 2,564,714 — — — — — 2,564,714 Interest income 173,947 152,687 105,279 431,913 298,544 89,476 68,788 166,479 20,781 1,075,981 Gain on originated residential mortgage loans, held-for-sale, net 1,039,939 87,343 — 1,129,787 — (43,555) — — — 1,086,232 Total revenues 1,213,886 2,403,199 506,824 4,126,414 298,544 45,921 68,788 166,479 20,781 4,726,927 Interest expense 123,350 201,706 107,849 432,905 166,937 78,706 8,066 64,188 40,199 791,001 G&A and other 1,219,271 503,434 195,415 1,918,120 3,720 60,682 8,277 64,277 497,972 2,553,048 Total operating expenses 1,342,621 705,140 303,264 2,351,025 170,657 139,388 16,343 128,465 538,171 3,344,049 Change in fair value of investments — (1,812) (11,386) (13,198) 1,055,346 37,102 (36,739) 65,779 — 1,108,290 Gain (loss) on settlement of investments, net — (1,378) (5,883) (7,261) (1,382,605) 67,465 — (37,345) 67 (1,359,679) Other income (loss), net 6,256 767 42,635 49,658 (9,174) 76,895 26,548 12,243 (24,858) 131,312 Total other income (loss) 6,256 (2,423) 25,366 29,199 (336,433) 181,462 (10,191) 40,677 (24,791) (120,077) Income (loss) before income taxes (122,479) 1,695,636 228,926 1,804,588 (208,546) 87,995 42,254 78,691 (542,181) 1,262,801 Income tax (benefit) expense (30,397) 357,715 40,678 367,996 — (5,333) 33 (7,792) (75,388) 279,516 Net income (loss) $ (92,082) $ 1,337,921 $ 188,248 $ 1,436,592 $ (208,546) $ 93,328 $ 42,221 $ 86,483 $ (466,793) $ 983,285 Noncontrolling interests in income (loss) of consolidated subsidiaries 2,716 — 2,850 5,566 — — 23,200 — — 28,766 Dividends on preferred stock — — — — — — — — 89,726 89,726 Net income (loss) attributable to common stockholders $ (94,798) $ 1,337,921 $ 185,398 $ 1,431,026 $ (208,546) $ 93,328 $ 19,021 $ 86,483 $ (556,519) $ 864,793 (A) Includes elimination of intercompany transactions of $2.5 million primarily related to loan sales. Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing Real Estate Properties and Residential Mortgage Loans Consumer Mortgage Loans Receivable Corporate Total December 31, 2022 Investments $ 2,066,798 $ 7,304,637 $ 2,091,507 $ 11,462,942 $ 8,289,277 $ 2,248,591 $ 363,756 $ 2,064,028 $ — $ 24,428,594 Cash and cash equivalents 163,452 440,739 276,690 880,881 381,456 361 605 52,441 20,764 1,336,508 Restricted cash 24,316 136,933 69,347 230,596 4,604 4,627 15,930 25,369 — 281,126 Other assets 224,705 2,204,127 3,000,911 5,429,743 248,283 324,119 29,375 170,129 146,260 6,347,909 Goodwill 11,836 12,540 5,092 29,468 — — — 55,731 — 85,199 Total assets $ 2,491,107 $ 10,098,976 $ 5,443,547 $ 18,033,630 $ 8,923,620 $ 2,577,698 $ 409,666 $ 2,367,698 $ 167,024 $ 32,479,336 Debt $ 1,909,030 $ 4,751,454 $ 3,272,945 $ 9,933,429 $ 7,430,463 $ 1,937,395 $ 299,498 $ 1,733,579 $ 567,371 $ 21,901,735 Other liabilities 214,148 2,081,536 35,052 2,330,736 776,785 272,484 1,176 25,818 160,534 3,567,533 Total liabilities 2,123,178 6,832,990 3,307,997 12,264,165 8,207,248 2,209,879 300,674 1,759,397 727,905 25,469,268 Total equity 367,929 3,265,986 2,135,550 5,769,465 716,372 367,819 108,992 608,301 (560,881) 7,010,068 Noncontrolling interests in equity of consolidated subsidiaries 12,437 — 12,193 24,630 — — 42,437 — — 67,067 Total Rithm Capital stockholders’ equity $ 355,492 $ 3,265,986 $ 2,123,357 $ 5,744,835 $ 716,372 $ 367,819 $ 66,555 $ 608,301 $ (560,881) $ 6,943,001 Investments in equity method investees $ — $ — $ 72,437 $ 72,437 $ — $ — $ — $ — $ — $ 72,437 Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing (A) Real Estate Properties and Residential Mortgage Loans Consumer Mortgage Loans Receivable Corporate Total Year Ended December 31, 2021 Servicing fee revenue, net and interest income from MSRs and MSR financing $ (4,089) $ 1,025,888 $ 537,755 $ 1,559,554 $ — $ — $ — $ — $ — $ 1,559,554 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(1,192,646)) — (313,655) (261,698) (575,353) — — — — — (575,353) Servicing revenue, net (4,089) 712,233 276,057 984,201 — — — — — 984,201 Interest income 188,053 20,629 49,162 257,844 293,989 139,658 93,847 4,219 21,339 810,896 Gain on originated residential mortgage loans, held-for-sale, net 1,704,363 101,764 (138,505) 1,781,204 9,878 35,827 — — — 1,826,909 Total revenues 1,888,327 834,626 186,714 3,023,249 303,867 175,485 93,847 4,219 21,339 3,622,006 Interest expense 121,392 97,696 104,838 323,926 47,037 76,273 10,999 1,000 38,073 497,308 G&A and other 1,223,668 395,007 273,748 1,892,423 4,620 90,377 10,856 1,802 119,686 2,119,764 Total operating expenses 1,345,060 492,703 378,586 2,216,349 51,657 166,650 21,855 2,802 157,759 2,617,072 Change in fair value of investments — — (22,336) (22,336) (101,566) 155,758 (20,133) — — 11,723 Gain (loss) on settlement of investments, net — (4,766) (35,116) (39,882) (254,672) 60,164 — — (171) (234,561) Other income (loss), net 2,346 742 79,355 82,443 3,515 94,765 1,935 — (946) 181,712 Total other income (loss) 2,346 (4,024) 21,903 20,225 (352,723) 310,687 (18,198) — (1,117) (41,126) Income (loss) before income taxes 545,613 337,899 (169,969) 827,125 (100,513) 319,522 53,794 1,417 (137,537) 963,808 Income tax (benefit) expense 115,289 17,828 (26,553) 106,564 — 51,579 83 — — 158,226 Net income (loss) $ 430,324 $ 320,071 $ (143,416) $ 720,561 $ (100,513) $ 267,943 $ 53,711 $ 1,417 $ (137,537) $ 805,582 Noncontrolling interests in income (loss) of consolidated subsidiaries 11,298 — (1,800) 9,498 — — 23,858 — — 33,356 Dividends on preferred stock — — — — — — — — 66,744 66,744 Net income (loss) attributable to common stockholders $ 419,026 $ 320,071 $ (141,616) $ 711,063 $ (100,513) $ 267,943 $ 29,853 $ 1,417 $ (204,281) $ 705,482 (A) Includes elimination of intercompany transactions of $113.6 million primarily related to loan sales. Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing Real Estate Properties and Residential Mortgage Loans Consumer Mortgage Loans Receivable Corporate Total December 31, 2021 Investments $ 8,829,598 $ 5,439,613 $ 2,776,078 $ 17,045,289 $ 9,396,539 $ 3,099,294 $ 507,291 $ 1,515,762 $ — $ 31,564,175 Cash and cash equivalents 587,685 250,294 288,900 1,126,879 197,559 22 1,437 5,653 1,025 1,332,575 Restricted cash 32,803 95,785 27,182 155,770 15,342 2,482 21,961 — 312 195,867 Other assets 969,338 2,728,253 1,926,482 5,624,073 389,309 125,647 39,662 106,615 279,068 6,564,374 Goodwill 11,836 12,540 5,092 29,468 — — — 55,731 — 85,199 Total assets $ 10,431,260 $ 8,526,485 $ 5,023,734 $ 23,981,479 $ 9,998,749 $ 3,227,445 $ 570,351 $ 1,683,761 $ 280,405 $ 39,742,190 Debt $ 8,251,702 $ 4,131,297 $ 3,561,342 $ 15,944,341 $ 9,040,309 $ 2,440,693 $ 460,314 $ 1,252,660 $ 642,670 $ 29,780,987 Other liabilities 425,582 2,323,315 182,460 2,931,357 6,991 179,260 583 8,541 165,091 3,291,823 Total liabilities 8,677,284 6,454,612 3,743,802 18,875,698 9,047,300 2,619,953 460,897 1,261,201 807,761 33,072,810 Total equity 1,753,976 2,071,873 1,279,932 5,105,781 951,449 607,492 109,454 422,560 (527,356) 6,669,380 Noncontrolling interests in equity of consolidated subsidiaries 15,683 — 10,251 25,934 — — 39,414 — — 65,348 Total Rithm Capital stockholders’ equity $ 1,738,293 $ 2,071,873 $ 1,269,681 $ 5,079,847 $ 951,449 $ 607,492 $ 70,040 $ 422,560 $ (527,356) $ 6,604,032 Investments in equity method investees $ — $ — $ 105,592 $ 105,592 $ — $ — $ — $ — $ — $ 105,592 Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing (A) Real Estate Properties and Residential Mortgage Loans Consumer Mortgage Loans Receivable Corporate Total Year Ended December 31, 2020 Servicing fee revenue, net and interest income from MSRs and MSR financing $ (11,519) $ 891,191 $ 762,600 $ 1,642,272 $ — $ — $ — $ — $ — $ 1,642,272 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(1,583,628)) — (1,094,339) (1,074,570) (2,168,909) — — — — — (2,168,909) Servicing revenue, net (11,519) (203,148) (311,970) (526,637) — — — — — (526,637) Interest income 63,160 16,897 58,517 138,574 355,916 175,963 124,512 — — 794,965 Gain on originated residential mortgage loans, held-for-sale, net 1,289,584 47,277 23,860 1,400,552 (13,398) 11,938 — — — 1,399,092 Total revenues 1,341,225 (138,974) (229,593) 1,012,489 342,518 187,901 124,512 — — 1,667,420 Interest expense 45,676 76,884 157,230 279,790 157,371 87,958 22,587 — 36,763 584,469 G&A and other 494,398 368,208 155,882 1,018,488 7,639 62,900 10,301 — 109,893 1,209,221 Total operating expenses 540,074 445,092 313,112 1,298,278 165,010 150,858 32,888 — 146,656 1,793,690 Change in fair value of investments — — (18,958) (18,958) (25,012) (107,604) 2,816 — — (148,758) Gain (loss) on settlement of investments, net — (5,486) (11,227) (16,713) (828,525) (19,655) (4,183) — (61,055) (930,131) Other income (loss), net 433 (1,738) 39,690 38,385 (11,071) (113,428) (8,386) — (41,109) (135,609) Total other income (loss) 433 (7,224) 9,505 2,714 (864,608) (240,687) (9,753) — (102,164) (1,214,498) Income (loss) before income taxes 801,584 (591,290) (533,200) (283,075) (687,100) (203,644) 81,871 — (248,820) (1,340,768) Income tax (benefit) expense 211,359 (58,288) (71,719) 81,352 — (65,215) 779 — — 16,916 Net income (loss) $ 590,225 $ (533,002) $ (461,481) $ (364,427) $ (687,100) $ (138,429) $ 81,092 $ — $ (248,820) $ (1,357,684) Noncontrolling interests in income (loss) of consolidated subsidiaries 15,625 — 891 16,516 — — 36,158 — — 52,674 Dividends on preferred stock — — — — — — — — 54,295 54,295 Net income (loss) attributable to common stockholders $ 574,600 $ (533,002) $ (462,372) $ (380,943) $ (687,100) $ (138,429) $ 44,934 $ — $ (303,115) $ (1,464,653) (A) Includes elimination of intercompany transactions of $39.8 million primarily related to loan sales. Servicing Segment Revenues The table below summarizes the components of servicing segment revenues: Year Ended December 31, 2022 2021 2020 Base servicing MSR assets $ 1,187,130 $ 731,924 $ 611,669 Residential whole loans 11,354 16,448 16,081 Third party 92,589 103,617 139,480 1,291,073 851,989 767,230 Other fees Ancillary and other fees (A) 140,874 173,899 123,961 Change in fair value due to: Realization of cash flows (414,017) (783,349) (792,680) Change in valuation inputs and assumptions and other 1,145,239 469,694 (301,659) Total servicing fees $ 2,163,169 $ 712,233 $ (203,148) Servicing data unpaid principal balance (“UPB”) (period end) (in millions) UPB – MSR assets $ 401,897 $ 389,852 $ 220,880 UPB – Residential whole loans 8,630 14,097 9,993 UPB – Third party 93,036 78,814 66,892 |
EXCESS MORTGAGE SERVICING RIGHT
EXCESS MORTGAGE SERVICING RIGHTS | 12 Months Ended |
Dec. 31, 2022 | |
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 Fortress-managed funds investing in Excess MSRs. The table below summarizes the components of Excess MSRs: Year Ended December 31, 2022 2021 Direct investments in Excess MSRs $ 249,366 $ 259,198 Excess MSR Joint Ventures 72,437 85,749 Excess mortgage servicing rights assets, at fair value $ 321,803 $ 344,947 Direct Investments in Excess MSRs The following table presents activity related to the carrying value of direct investments in Excess MSRs: Servicer Total (A) Balance as of December 31, 2020 $ 310,938 Interest income 20,296 Other income 78 Proceeds from repayments (56,052) Proceeds from sales (984) Change in fair value (15,078) Balance as of December 31, 2021 259,198 Interest income 38,035 Other income 42 Proceeds from repayments (43,950) Proceeds from sales (997) Change in fair value (2,962) Balance as of December 31, 2022 $ 249,366 (A) Underlying loans serviced by Mr. Cooper and Specialized Loan Servicing LLC (“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 has 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 7). The following summarizes direct investments in Excess MSRs: December 31, 2022 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis Carrying Value (B) Rithm Capital (C)(D) Fortress-managed funds Mr. Cooper $ 48,154,644 32.5% – 100% (56.5%) —% – 50.0% —% – 35.0% 6.3 $ 207,470 $ 249,366 December 31, 2021 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis Carrying Value (B) Rithm Capital (C)(D) Fortress-managed funds Mr. Cooper $ 57,422,177 32.5% – 100.0% (56.3%) —% – 50.0% —% – 35.0% 6.3 $ 214,239 $ 259,198 (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 December 31, 2022 and 2021 (Note 7) on $17.0 billion and $20.3 billion UPB, respectively, underlying these Excess MSRs. Changes in fair value of investments consists of the following: Year Ended December 31, 2022 2021 2020 Original and Recaptured Pools $ (2,962) $ (15,078) $ (16,232) As of December 31, 2022 and 2021, weighted average discount rates of 8.3% (range of 8% – 8.5%) and 7.8% (range of 7.5% – 8.0%), respectively, were 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 Fortress-managed funds investing in Excess MSRs. The following tables summarize the financial results of the Excess MSR joint ventures, accounted for as equity method investees: December 31, 2022 2021 Excess MSRs $ 135,356 $ 152,383 Other assets 10,204 19,802 Other liabilities (687) (687) Equity $ 144,873 $ 171,498 Rithm Capital’s investment $ 72,437 $ 85,749 Rithm Capital’s percentage ownership 50.0 % 50.0 % Year Ended December 31, 2022 2021 2020 Interest income $ 15,157 $ 7,574 $ 22,507 Other income (loss) (12,073) (3,906) (29,461) Expenses (32) (32) (24) Net income (loss) $ 3,052 $ 3,636 $ (6,978) The following table summarizes the activity of investments in equity method investees: December 31, 2022 2021 Balance at beginning of period $ 85,749 $ 99,917 Contributions (distributions) to equity method investees — — Distributions of capital from equity method investees (14,838) (15,986) Change in fair value of investments in equity method investees 1,526 1,818 Balance at end of period $ 72,437 $ 85,749 The following table summarizes Excess MSR investments made through equity method investees: December 31, 2022 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 $ 19,299,726 66.7% 50.0% $ 106,176 $ 135,356 5.1 December 31, 2021 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 $ 23,039,453 66.7% 50.0% $ 112,840 $ 152,383 5.7 (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: Total Balance as of December 31, 2020 $ 4,585,841 Caliber acquisition (Note 3) 1,507,524 Purchases, net (A) 10,949 Originations (B) 1,331,626 Proceeds from sales (63,451) Change in fair value due to: Realization of cash flows (C) (1,196,527) Change in valuation inputs and assumptions 680,431 (Gain) loss realized 2,410 Balance as of December 31, 2021 $ 6,858,803 Purchases, net (A) (967) Originations (B) 1,222,742 Proceeds from sales (14,282) Change in fair value due to: Realization of cash flows (C) (631,120) Change in valuation inputs and assumptions 1,449,134 (Gain) loss realized 5,093 Balance as of December 31, 2022 $ 8,889,403 (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) Based on the paydown of the underlying residential mortgage loans. The following table summarizes components of Servicing Revenue, Net: Year Ended December 31, 2022 2021 2020 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 1,699,587 $ 1,446,509 $ 1,457,211 Ancillary and other fees 132,377 113,045 185,061 Servicing fee revenue and fees, net 1,831,964 1,559,554 1,642,272 Change in fair value due to: Realization of cash flows (A) (631,120) (1,192,646) (1,583,628) Change in valuation inputs and assumptions (B) 1,449,134 680,088 (585,928) Change in fair value of derivative instruments (11,316) (30,481) — (Gain) loss realized 5,093 2,410 647 Gain (loss) on settlement of derivative instruments (79,041) (34,724) — Servicing revenue, net $ 2,564,714 $ 984,201 $ (526,637) (A) Includes $3.9 million and $8.7 million of fair value adjustment due to realization of cash flows to excess spread financing for the year ended December 31, 2021 and 2020, respectively. (B) Includes $0.3 million and $5.5 million of fair value adjustment due to changes in valuation inputs and assumptions to excess spread financing for the year ended December 31, 2021 and 2020, respectively. The following is a summary of MSRs and MSR Financing Receivables as of December 31, 2022 and 2021: UPB of Underlying Mortgages Weighted Average Life (Years) (A) Carrying Value (B) 2022 Agency $ 364,879,106 7.2 $ 6,022,266 Non-Agency 53,881,903 4.9 794,459 Ginnie Mae (c) 121,136,315 6.7 2,072,678 Total $ 539,897,324 6.9 $ 8,889,403 2021 Agency $ 374,815,579 6.1 $ 4,443,713 Non-Agency 63,851,154 8.3 943,210 Ginnie Mae (c) 109,946,356 5.7 1,471,880 Total/Weighted Average $ 548,613,089 6.3 $ 6,858,803 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Represents fair value. As of December 31, 2022 and 2021, weighted average discount rates of 8.3% (range of 7.6% – 9.8%) and 7.4% (range of 6.9% – 12.5%), respectively, were used to value Rithm Capital’s MSRs and MSR Financing Receivables, respectively. (C) As of December 31, 2022 and 2021, Rithm Capital holds approximately $1.2 billion and $1.8 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 Rithm Capital intends to repurchase the loans. As of December 31, 2022 and 2021, Rithm Capital holds approximately $1.2 billion and $1.8 billion, respectively, 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 December 31, 2022 and 2021, Rithm Capital holds approximately $0.8 billion and $1.1 billion, respectively, of reacquired residential mortgage loans and is reflected in Residential Mortgage Loans, Held-for-Sale, at Fair Value on the 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 residential 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 December 31, 2022 and 2021 , with respect to MSRs representing approximately $12.4 billion and $14.0 billion UPB of underlying loans, respectively, 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 December 31, 2022 December 31, 2021 California 17.4 % 18.1 % Florida 8.6 % 8.6 % Texas 6.2 % 6.2 % New York 6.0 % 6.0 % Washington 5.9 % 5.6 % New Jersey 4.4 % 4.5 % Virginia 3.6 % 3.4 % Maryland 3.4 % 3.4 % Illinois 3.4 % 3.4 % Georgia 2.9 % 3.0 % Other U.S. 38.2 % 37.8 % 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 third parties under subservicing agreements. The subservicing does not meet the criteria to be recognized as a servicing right asset and, therefore, is not recognized on Rithm Capital’s Consolidated Balance Sheets. The UPB of residential mortgage loans subserviced for others as of December 31, 2022 and 2021 was $93.0 billion and $78.8 billion, respectively. Rithm Capital earned subservicing revenue of $132.1 million and $158.5 million for the year ended December 31, 2022 and 2021, respectively, related to subserviced loans which is included within Servicing Revenue, Net in the Consolidated Statements of Income. NRM engages third party licensed mortgage servicers as subservicers and, in relation to certain MSR purchases, including to perform the operational servicing duties, including recapture activities, in connection with the MSRs it acquires, 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 Income. As of December 31, 2022, these subservicers include PHH, Mr. Cooper, LoanCare, Valon and Flagstar, which subservice 9.2%, 8.0%, 6.0%, 2.0% and 0.3%, respectively, of the MSRs held by Rithm Capital. The remaining 74.5% of the underlying UPB of the related mortgages is subserviced by the Mortgage Company (Note 1). 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 23) it services. These servicer advances are recorded when advanced and are included in Servicer Advances Receivable on the Consolidated Balance Sheets. The following types of advances are included in the Servicer Advances Receivable: December 31, 2022 2021 Principal and interest advances $ 664,495 $ 562,418 Escrow advances (taxes and insurance advances) 1,426,409 1,523,154 Foreclosure advances 754,073 793,098 Total (A)(B)(C) $ 2,844,977 $ 2,878,670 (A) Includes $526.5 million and $593.0 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B) Includes $261.8 million and $212.9 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 $19.5 million and $23.5 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 $65.4 million and $32.1 million for expected non-recovery of advances as of December 31, 2022 and 2021, respectively. The following table summarizes the activity of the servicer advances reserve: Balance as of December 31, 2020 $ 22,849 Caliber acquisition (Note 3) 15,068 Provision 11,560 Write-offs (17,355) Balance as of December 31, 2021 $ 32,122 Provision 48,392 Write-offs (15,086) Balance as of December 31, 2022 $ 65,428 See Note 19 regarding the financing of MSRs and Servicer Advances Receivable. |
MORTGAGE SERVICING RIGHTS AND M
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [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 Fortress-managed funds investing in Excess MSRs. The table below summarizes the components of Excess MSRs: Year Ended December 31, 2022 2021 Direct investments in Excess MSRs $ 249,366 $ 259,198 Excess MSR Joint Ventures 72,437 85,749 Excess mortgage servicing rights assets, at fair value $ 321,803 $ 344,947 Direct Investments in Excess MSRs The following table presents activity related to the carrying value of direct investments in Excess MSRs: Servicer Total (A) Balance as of December 31, 2020 $ 310,938 Interest income 20,296 Other income 78 Proceeds from repayments (56,052) Proceeds from sales (984) Change in fair value (15,078) Balance as of December 31, 2021 259,198 Interest income 38,035 Other income 42 Proceeds from repayments (43,950) Proceeds from sales (997) Change in fair value (2,962) Balance as of December 31, 2022 $ 249,366 (A) Underlying loans serviced by Mr. Cooper and Specialized Loan Servicing LLC (“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 has 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 7). The following summarizes direct investments in Excess MSRs: December 31, 2022 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis Carrying Value (B) Rithm Capital (C)(D) Fortress-managed funds Mr. Cooper $ 48,154,644 32.5% – 100% (56.5%) —% – 50.0% —% – 35.0% 6.3 $ 207,470 $ 249,366 December 31, 2021 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis Carrying Value (B) Rithm Capital (C)(D) Fortress-managed funds Mr. Cooper $ 57,422,177 32.5% – 100.0% (56.3%) —% – 50.0% —% – 35.0% 6.3 $ 214,239 $ 259,198 (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 December 31, 2022 and 2021 (Note 7) on $17.0 billion and $20.3 billion UPB, respectively, underlying these Excess MSRs. Changes in fair value of investments consists of the following: Year Ended December 31, 2022 2021 2020 Original and Recaptured Pools $ (2,962) $ (15,078) $ (16,232) As of December 31, 2022 and 2021, weighted average discount rates of 8.3% (range of 8% – 8.5%) and 7.8% (range of 7.5% – 8.0%), respectively, were 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 Fortress-managed funds investing in Excess MSRs. The following tables summarize the financial results of the Excess MSR joint ventures, accounted for as equity method investees: December 31, 2022 2021 Excess MSRs $ 135,356 $ 152,383 Other assets 10,204 19,802 Other liabilities (687) (687) Equity $ 144,873 $ 171,498 Rithm Capital’s investment $ 72,437 $ 85,749 Rithm Capital’s percentage ownership 50.0 % 50.0 % Year Ended December 31, 2022 2021 2020 Interest income $ 15,157 $ 7,574 $ 22,507 Other income (loss) (12,073) (3,906) (29,461) Expenses (32) (32) (24) Net income (loss) $ 3,052 $ 3,636 $ (6,978) The following table summarizes the activity of investments in equity method investees: December 31, 2022 2021 Balance at beginning of period $ 85,749 $ 99,917 Contributions (distributions) to equity method investees — — Distributions of capital from equity method investees (14,838) (15,986) Change in fair value of investments in equity method investees 1,526 1,818 Balance at end of period $ 72,437 $ 85,749 The following table summarizes Excess MSR investments made through equity method investees: December 31, 2022 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 $ 19,299,726 66.7% 50.0% $ 106,176 $ 135,356 5.1 December 31, 2021 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 $ 23,039,453 66.7% 50.0% $ 112,840 $ 152,383 5.7 (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: Total Balance as of December 31, 2020 $ 4,585,841 Caliber acquisition (Note 3) 1,507,524 Purchases, net (A) 10,949 Originations (B) 1,331,626 Proceeds from sales (63,451) Change in fair value due to: Realization of cash flows (C) (1,196,527) Change in valuation inputs and assumptions 680,431 (Gain) loss realized 2,410 Balance as of December 31, 2021 $ 6,858,803 Purchases, net (A) (967) Originations (B) 1,222,742 Proceeds from sales (14,282) Change in fair value due to: Realization of cash flows (C) (631,120) Change in valuation inputs and assumptions 1,449,134 (Gain) loss realized 5,093 Balance as of December 31, 2022 $ 8,889,403 (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) Based on the paydown of the underlying residential mortgage loans. The following table summarizes components of Servicing Revenue, Net: Year Ended December 31, 2022 2021 2020 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 1,699,587 $ 1,446,509 $ 1,457,211 Ancillary and other fees 132,377 113,045 185,061 Servicing fee revenue and fees, net 1,831,964 1,559,554 1,642,272 Change in fair value due to: Realization of cash flows (A) (631,120) (1,192,646) (1,583,628) Change in valuation inputs and assumptions (B) 1,449,134 680,088 (585,928) Change in fair value of derivative instruments (11,316) (30,481) — (Gain) loss realized 5,093 2,410 647 Gain (loss) on settlement of derivative instruments (79,041) (34,724) — Servicing revenue, net $ 2,564,714 $ 984,201 $ (526,637) (A) Includes $3.9 million and $8.7 million of fair value adjustment due to realization of cash flows to excess spread financing for the year ended December 31, 2021 and 2020, respectively. (B) Includes $0.3 million and $5.5 million of fair value adjustment due to changes in valuation inputs and assumptions to excess spread financing for the year ended December 31, 2021 and 2020, respectively. The following is a summary of MSRs and MSR Financing Receivables as of December 31, 2022 and 2021: UPB of Underlying Mortgages Weighted Average Life (Years) (A) Carrying Value (B) 2022 Agency $ 364,879,106 7.2 $ 6,022,266 Non-Agency 53,881,903 4.9 794,459 Ginnie Mae (c) 121,136,315 6.7 2,072,678 Total $ 539,897,324 6.9 $ 8,889,403 2021 Agency $ 374,815,579 6.1 $ 4,443,713 Non-Agency 63,851,154 8.3 943,210 Ginnie Mae (c) 109,946,356 5.7 1,471,880 Total/Weighted Average $ 548,613,089 6.3 $ 6,858,803 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Represents fair value. As of December 31, 2022 and 2021, weighted average discount rates of 8.3% (range of 7.6% – 9.8%) and 7.4% (range of 6.9% – 12.5%), respectively, were used to value Rithm Capital’s MSRs and MSR Financing Receivables, respectively. (C) As of December 31, 2022 and 2021, Rithm Capital holds approximately $1.2 billion and $1.8 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 Rithm Capital intends to repurchase the loans. As of December 31, 2022 and 2021, Rithm Capital holds approximately $1.2 billion and $1.8 billion, respectively, 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 December 31, 2022 and 2021, Rithm Capital holds approximately $0.8 billion and $1.1 billion, respectively, of reacquired residential mortgage loans and is reflected in Residential Mortgage Loans, Held-for-Sale, at Fair Value on the 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 residential 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 December 31, 2022 and 2021 , with respect to MSRs representing approximately $12.4 billion and $14.0 billion UPB of underlying loans, respectively, 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 December 31, 2022 December 31, 2021 California 17.4 % 18.1 % Florida 8.6 % 8.6 % Texas 6.2 % 6.2 % New York 6.0 % 6.0 % Washington 5.9 % 5.6 % New Jersey 4.4 % 4.5 % Virginia 3.6 % 3.4 % Maryland 3.4 % 3.4 % Illinois 3.4 % 3.4 % Georgia 2.9 % 3.0 % Other U.S. 38.2 % 37.8 % 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 third parties under subservicing agreements. The subservicing does not meet the criteria to be recognized as a servicing right asset and, therefore, is not recognized on Rithm Capital’s Consolidated Balance Sheets. The UPB of residential mortgage loans subserviced for others as of December 31, 2022 and 2021 was $93.0 billion and $78.8 billion, respectively. Rithm Capital earned subservicing revenue of $132.1 million and $158.5 million for the year ended December 31, 2022 and 2021, respectively, related to subserviced loans which is included within Servicing Revenue, Net in the Consolidated Statements of Income. NRM engages third party licensed mortgage servicers as subservicers and, in relation to certain MSR purchases, including to perform the operational servicing duties, including recapture activities, in connection with the MSRs it acquires, 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 Income. As of December 31, 2022, these subservicers include PHH, Mr. Cooper, LoanCare, Valon and Flagstar, which subservice 9.2%, 8.0%, 6.0%, 2.0% and 0.3%, respectively, of the MSRs held by Rithm Capital. The remaining 74.5% of the underlying UPB of the related mortgages is subserviced by the Mortgage Company (Note 1). 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 23) it services. These servicer advances are recorded when advanced and are included in Servicer Advances Receivable on the Consolidated Balance Sheets. The following types of advances are included in the Servicer Advances Receivable: December 31, 2022 2021 Principal and interest advances $ 664,495 $ 562,418 Escrow advances (taxes and insurance advances) 1,426,409 1,523,154 Foreclosure advances 754,073 793,098 Total (A)(B)(C) $ 2,844,977 $ 2,878,670 (A) Includes $526.5 million and $593.0 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B) Includes $261.8 million and $212.9 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 $19.5 million and $23.5 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 $65.4 million and $32.1 million for expected non-recovery of advances as of December 31, 2022 and 2021, respectively. The following table summarizes the activity of the servicer advances reserve: Balance as of December 31, 2020 $ 22,849 Caliber acquisition (Note 3) 15,068 Provision 11,560 Write-offs (17,355) Balance as of December 31, 2021 $ 32,122 Provision 48,392 Write-offs (15,086) Balance as of December 31, 2022 $ 65,428 See Note 19 regarding the financing of MSRs and Servicer Advances Receivable. |
SERVICER ADVANCE INVESTMENTS
SERVICER ADVANCE INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
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 “Buyer”), a joint venture entity, and owned an approximately 73.2% interest in the Buyer as of December 31 2020. In July 2021, Rithm Capital entered into a purchase and sales agreement with certain third-party co-investors whereby Rithm Capital agreed to purchase from certain third-party co-investors approximately 16.1% of aggregate interest in the Buyer, increasing Rithm Capital’s ownership of the Buyer to approximately 89.3% as of December 31, 2021. As of December 31, 2022, third-party co-investors, owning the remaining interest in the Buyer, have funded capital commitments to the Buyer of $75.0 million and Rithm Capital has funded capital commitments to the Buyer of $627.4 million. The Buyer may call capital up to the commitment amount on unfunded commitments and recall capital to the extent the Buyer makes a distribution to the co-investors, including Rithm Capital. As of December 31, 2022, the noncontrolling third-party co-investors and Rithm Capital had previously funded their commitments, however, the Buyer 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 the Buyer. The Buyer has purchased servicer advances from Mr. Cooper, is required to purchase all future servicer advances made with respect to this portfolio of loans from Mr. Cooper, and receives cash flows from advance recoveries and the basic fee component of the related MSRs, net of compensation paid back to Mr. Cooper in consideration of Mr. Cooper’s servicing activities. The compensation paid to Mr. Cooper as of December 31, 2022 was approximately 9.2% of the basic fee component of the related MSRs plus a performance fee that represents a portion (up to 100%) of the cash flows in excess of those required for the Buyer to obtain a specified return on its equity. Rithm Capital has determined that the Buyer is a VIE. See Note 21 for information regarding the assets and liabilities related to this consolidated VIE. Rithm Capital also acquired a portion of the call rights related to this portfolio of loans. 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) December 31, 2022 Servicer Advance Investments $ 392,749 $ 398,820 5.7 % 5.6 % 8.4 December 31, 2021 Servicer Advance Investments $ 405,786 $ 421,807 5.2 % 5.5 % 6.9 (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 December 31, 2022 Servicer Advance Investments (D) $ 17,033,753 $ 341,628 2.0 % $ 319,276 90.2 % 88.3 % 6.5 % 5.9 % December 31, 2021 Servicer Advance Investments (D) $ 20,314,977 $ 369,440 1.8 % $ 356,580 91.4 % 90.7 % 1.3 % 1.2 % (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: December 31, 2022 2021 Principal and interest advances $ 66,892 $ 67,014 Escrow advances (taxes and insurance advances) 155,438 174,681 Foreclosure advances 119,298 127,745 Total $ 341,628 $ 369,440 The following table summarizes interest income related to Servicer Advance Investments: Year Ended December 31, 2022 2021 2020 Interest income, gross of amounts attributable to servicer compensation $ 15,821 $ 12,501 $ 34,262 Amounts attributable to basic servicer compensation (891) (1,798) (3,248) Amounts attributable to incentive servicer compensation 27,075 (9,025) (12,832) Interest income from servicer advance investments $ 42,005 $ 1,678 $ 18,182 See Note 19 regarding the financing of Servicer Advance Investments. |
REAL ESTATE AND OTHER SECURITIE
REAL ESTATE AND OTHER SECURITIES | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE AND OTHER SECURITIES | REAL ESTATE AND OTHER SECURITIES “Agency” residential mortgage backed securities (“RMBS”) are RMBS issued by a government sponsored enterprise, such as Fannie Mae or Freddie Mac. “Non-Agency” RMBS are issued by either public trusts or private label securitization entities. The following table summarizes Real Estate and Other Securities by designation: December 31, 2022 Gross Unrealized Weighted Average Outstanding Face Amount Gains Losses Carrying Value (A) Number of Securities Coupon (B) Yield Life (Years) (C) Principal Subordination (D) RMBS designated as available for sale (AFS): Agency (E) $ 80,261 $ — $ — $ 73,439 1 3.50 % 3.50 % 8.9 N/A Non-Agency (F)(G) 2,631,852 72,354 (33,684) 397,076 333 3.50 % 3.50 % 6.4 29.1 % RMBS measured at fair value through net income (FVO): Agency (E) 7,383,261 91,770 (43,826) 7,264,978 35 5.00 % 5.00 % 8.6 N/A Non-Agency (F)(G) 15,275,560 56,213 (91,369) 553,784 341 2.70 % 4.80 % 7.5 16.7 % Total/ Weighted Average $ 25,370,934 $ 220,337 $ (168,879) $ 8,289,277 710 4.80 % 4.90 % 8.4 December 31, 2021 Gross Unrealized Weighted Average Outstanding Face Amount Gains Losses Carrying Value (A) Number of Securities Coupon (B) Yield Life (Years) (C) Principal Subordination (D) RMBS designated as available for sale (AFS): Agency (E) $ 91,572 $ 7,008 $ — $ 98,367 1 3.50 % 3.50 % 4.4 N/A Non-Agency (F)(G) 2,956,066 84,494 (117) 522,416 334 3.29 % 3.18 % 3.4 26.6 % RMBS measured at fair value through net income (FVO): Agency (E) 8,307,771 204 (226,309) 8,346,230 40 2.13 % 2.13 % 7.0 N/A Non-Agency (F)(G) 12,958,891 32,814 (51,892) 429,526 271 2.15 % 3.91 % 3.2 20.3 % Total/ Weighted Average $ 24,314,300 $ 124,520 $ (278,318) $ 9,396,539 646 2.19 % 2.27 % 6.6 (A) Fair value is equal to carrying value for all securities. (B) Excludes residual bonds, and certain other Non-Agency bonds, with a carrying value of $16.6 million and $1.1 million, respectively, for which no coupon payment is expected. (C) Based on the timing of expected principal reduction on the assets. (D) Percentage of the amortized cost basis of securities that is subordinate to Rithm Capital’s investments, excluding fair value option securities. (E) The total outstanding face amount was $7.5 billion and $8.4 billion for fixed rate securities and $0.0 billion and $0.0 billion for floating rate securities as of December 31, 2022 and 2021, respectively. (F) The total outstanding face amount was $8.4 billion (including $7.5 billion of residual and fair value option notional amount) and $9.6 billion (including $8.7 billion of residual and fair value option notional amount) for fixed rate securities and $9.5 billion (including $9.3 billion of residual and fair value option notional amount) and $6.4 billion (including $6.2 billion of residual and fair value option notional amount) for floating rate securities as of December 31, 2022 and 2021, respectively. (G) Includes other asset backed securities (“ABS”) consisting primarily of (i) interest-only securities and servicing strips which Rithm Capital elected to carry at fair value (fair value option securities) and record changes to valuation through the income statement, (ii) bonds backed by consumer loans and (iii) corporate debt. The following table summarizes these securities: Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Gains Losses Carrying Value Number of Securities Coupon Yield Life (Years) December 31, 2022 Corporate debt $ 514 $ — $ — $ 465 2 8.20 % 9.50 % 2.2 Consumer loan bonds 518 522 — 590 3 N/A N/A 0.7 Fair value option securities Interest-only securities 9,652,902 29,681 (31,714) 160,160 141 0.90 % 5.40 % 3.2 Servicing strips 4,338,099 17,501 (4,105) 59,017 61 0.70 % 9.90 % 4.2 December 31, 2021 Corporate Debt $ 414 $ 9 $ — $ 423 1 8.25 % 8.25 % 3.3 Consumer loan bonds 2,960 878 — 2,974 3 N/A N/A 0.0 Fair value option securities Interest-only securities 7,368,874 8,099 (43,626) 152,489 127 1.19 % 1.54 % 2.0 Servicing strips 4,413,700 6,869 (7,758) 59,120 59 1.40 % 13.12 % 2.6 The following table summarizes purchases and sales of Real Estate and Other Securities: Year Ended December 31, 2022 2021 (in millions) Agency Non-Agency Agency Non-Agency Purchases Face $ 16,479.3 $ 5,018.1 $ 5,907.2 $ 2,999.3 Purchase price 16,314.6 256.5 6,098.8 174.3 Sales Face $ 16,516.0 $ 15.3 $ 7,830.8 $ 1,686.9 Amortized cost 16,759.7 13.6 8,135.6 193.2 Sale price 15,026.3 12.0 8,074.3 164.7 Gain (loss) on sale (1,733.4) (1.6) (61.3) (28.5) 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. There were no unsettled trades as of December 31, 2021. 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 Notes 9 and 24 for further details on these transactions. Unrealized losses attributable to credit impairment associated with securities designated as AFS are recognized in net income. During the year ended December 31, 2022, 2021 and 2020, Rithm Capital recorded a credit impairment of $7.3 million, a reversal of credit impairment of $5.2 million and a credit impairment of $13.4 million, respectively. Any remaining unrealized losses on Rithm Capital’s securities were primarily the result of changes in market factors, rather than issuer-specific credit impairment. Rithm Capital performed analyses in relation to such securities, using its best estimate of cash flows, which support its belief that the carrying values of such securities were fully recoverable over their expected holding period. Rithm Capital has no intent to sell, and is not more likely than not to be required to sell, these securities. The following table summarizes certain information for RMBS designated as AFS in an unrealized loss position as of December 31, 2022. Amortized Cost Basis Weighted Average Securities in an Unrealized Loss Position Outstanding Face Amount Before Credit Impairment Credit Impairment (A) After Credit Impairment Gross Unrealized Losses Carrying Value Number of Securities Coupon Yield Life Less than 12 Months $ 408,191 $ 390,591 $ (10,816) $ 379,775 $ (33,435) $ 346,340 199 4.8 % 4.9 % 8.5 12 or More Months 3,107 3,157 — 3,157 (249) 2,908 2 1.5 % 4.0 % 3.6 Total/Weighted Average $ 411,298 $ 393,748 $ (10,816) $ 382,932 $ (33,684) $ 349,248 201 4.8 % 4.9 % 8.5 (A) Represents credit impairment on securities in an unrealized loss position as of December 31, 2022. 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: December 31, 2022 December 31, 2021 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 77,843 78,101 (10,816) (258) 6,581 6,581 (3,471) — Non-credit impaired securities 271,405 304,831 — (33,426) 3,927 4,044 — (117) Total debt securities in an unrealized loss position $ 349,248 $ 382,932 $ (10,816) $ (33,684) $ 10,508 $ 10,625 $ (3,471) $ (117) (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, 2020 $ 8,672 $ — $ 8,672 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 (2,182) — (2,182) 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 (3,019) — (3,019) Write-offs charged against the allowance — — — Recoveries of amounts previously written off — — — Allowance for credit losses on available-for-sale debt securities at December 31, 2021 $ 3,471 $ — $ 3,471 Additions to the allowance for credit losses on securities for which credit losses were not previously recorded 128 6,676 6,804 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 — — — 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 541 — 541 Write-offs charged against the allowance — — — Recoveries of amounts previously written off — — — Allowance for credit losses on available-for-sale debt securities at December 31, 2022 $ 4,140 $ 6,676 $ 10,816 Rithm Capital evaluates the credit quality of its real estate securities, as of the acquisition date, for evidence of credit quality deterioration. As a result, Rithm Capital identified a population of real estate securities for which it was determined that it was probable that Rithm Capital would be unable to collect all contractually required payments. The following is the outstanding face amount and carrying value for securities, for which, as of the acquisition date, it was probable that Rithm Capital would be unable to collect all contractually required payments, excluding residual and fair value option securities: Outstanding Face Amount Carrying Value December 31, 2022 $ 443,680 $ 66,775 December 31, 2021 512,731 180,890 The following is a summary of the changes in accretable yield for these securities: Year Ended December 31, 2022 2021 Beginning balance $ 36,093 $ 189,562 Additions — 8,324 Accretion (2,155) (4,720) Reclassifications from (to) non-accretable difference 7,262 (8,015) Disposals — (149,058) Ending balance $ 41,200 $ 36,093 See Note 19 regarding the financing of Real Estate and Other Securities. |
RESIDENTIAL MORTGAGE LOANS
RESIDENTIAL MORTGAGE LOANS | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022, 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: December 31, 2022 2021 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 (B) $ 538,710 $ 452,519 9,612 8.5 % 4.3 $ 569,933 Acquired performing loans (C) 85,049 72,425 2,249 8.5 % 5.2 130,634 Acquired non-performing loans (D) 32,798 28,602 448 7.8 % 3.0 2,287 Total residential mortgage loans, held-for-sale, at lower of cost or market $ 117,847 $ 101,027 2,697 8.3 % 4.6 $ 132,921 Acquired performing loans (C)(E) 947,910 890,131 4,474 5.7 % 19.2 2,070,262 Acquired non-performing loans (D)(E) 369,220 340,342 1,938 4.3 % 27.9 315,063 Originated loans 2,070,758 2,066,798 5,760 6.5 % 29.5 8,829,599 Total residential mortgage loans, held-for-sale, at fair value $ 3,387,888 $ 3,297,271 12,172 6.0 % 26.4 $ 11,214,924 Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market $ 3,505,735 $ 3,398,298 $ 11,347,845 (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) Residential mortgage loans, held-for-investment, at fair value is grouped and presented as part of Residential Loans and Variable Interest Entity Consumer Loans, Held-for-Investment, at Fair Value on the Consolidated Balance Sheets. (C) Performing loans are generally placed on nonaccrual status when principal or interest is 90 days or more past due. (D) As of December 31, 2022, Rithm Capital has placed non-performing loans, held-for-sale on nonaccrual status, except as described in (E) below. (E) Includes $523.1 million and $299.2 million UPB of Ginnie Mae EBO 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 December 31, State Concentration 2022 2021 Florida 10.9 % 10.1 % California 10.2 % 15.7 % Texas 8.9 % 6.7 % New York 6.8 % 7.1 % Washington 4.4 % 7.5 % Georgia 4.2 % 3.1 % New Jersey 3.8 % 3.8 % Illinois 3.6 % 2.8 % Indiana 3.2 % 2.0 % Maryland 3.1 % 3.1 % Other U.S. 40.9 % 38.1 % 100.0 % 100.0 % See Note 19 regarding the financing of residential mortgage loans. The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate fair value of loans: December 31, 2022 2021 Days Past Due UPB Fair Value Fair Value Over (Under) UPB Unpaid Principal Balance Fair Value Fair Value Over (Under) UPB 90+ $ 468,147 $ 423,321 $ (44,826) $ 779,178 $ 740,043 $ (39,135) Call Rights Rithm Capital has executed calls with respect to Non-Agency RMBS trusts and purchased performing and non-performing residential mortgage loans and REO assets 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. For the year ended December 31, 2022, Rithm Capital executed calls on a total of 5 trusts and recognized no interest income on securities held in the collapsed trusts and $8.3 million of gain on securitizations accounted for as sales. For the year ended December 31, 2021, Rithm Capital executed calls on a total of 75 trusts and recognized $3.3 million of interest income on securities held in the collapsed trusts and $29.0 million of gain on securitizations accounted for as sales. Refer to Note 24 for transactions with affiliates. The following table summarizes the activity for residential mortgage loans: Loans Held-for-Investment Loans Held-for-Sale, at Lower Cost or Fair Value Loans Held-for-Sale, at Fair Value Total Balance at December 31, 2020 $ 674,179 $ 509,887 $ 4,705,816 $ 5,889,882 Caliber acquisition (Note 3) — — 7,685,681 7,685,681 Originations — — 123,059,895 123,059,895 Sales — (374,683) (131,960,935) (132,335,618) Purchases/additional fundings — — 8,102,055 8,102,055 Proceeds from repayments (120,247) (32,826) (520,334) (673,407) Transfer of loans to other assets (A) — (585) 22,112 21,527 Transfer of loans to real estate owned (15,165) (7,145) (3,958) (26,268) Valuation provision on loans — 38,273 — 38,273 Fair value adjustments due to: Changes in instrument-specific credit risk (2,020) — (18,099) (20,119) Other factors 33,186 — 142,691 175,877 Balance at December 31, 2021 $ 569,933 $ 132,921 $ 11,214,924 $ 11,917,778 Originations — — 67,406,228 67,406,228 Sales — (4,426) (81,648,703) (81,653,129) Purchases/additional fundings 7,182 — 6,880,225 6,887,407 Proceeds from repayments (80,661) (17,777) (394,613) (493,051) Transfer of loans to other assets (A) — — (25,375) (25,375) Transfer of loans to real estate owned (4,956) (1,386) (752) (7,094) Transfers of loans to held-for-sale (1,580) — — (1,580) Transfers of loans to from held-for-investment — — 1,582 1,582 Valuation provision on loans — (8,305) — (8,305) Fair value adjustments due to: Changes in instrument-specific credit risk (33,086) — (36,204) (69,290) Other factors (4,313) — (100,041) (104,354) Balance at December 31, 2022 $ 452,519 $ 101,027 $ 3,297,271 $ 3,850,817 (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 14). Net Interest Income The following table summarizes the net interest income for residential mortgage loans: December 31, 2022 2021 2020 Interest income: Loans held-for-investment, at fair value $ 45,287 $ 44,369 $ 53,264 Loans held-for-sale, at lower of cost or fair value 6,898 23,280 50,130 Loans held-for-sale, at fair value 211,238 260,062 135,729 Total interest income 263,423 327,711 239,123 Interest expense: Loans held-for-investment, at fair value 17,583 16,919 21,029 Loans held-for-sale, at lower of cost or fair value 3,402 21,333 22,541 Loans held-for-sale, at fair value and SFR properties 181,071 159,413 90,064 Total interest expense 202,056 197,665 133,634 Net interest income $ 61,367 $ 130,046 $ 105,489 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. 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, Rithm Capital reports Gain on Originated Residential Mortgage Loans, Held-for-Sale, Net in the Consolidated Statements of Income. The following table summarizes the components of Gain on Originated Residential Mortgage Loans, Held-for-Sale, Net: Year Ended December 31, 2022 2021 2020 Gain (loss) on residential mortgage loans originated and sold, net (A) $ (1,106,458) $ 460,062 $ 811,288 Gain (loss) on settlement of residential mortgage loan origination derivative instruments (B) 1,285,219 240,610 (361,755) MSRs retained on transfer of residential mortgage loans (C) 1,222,742 1,331,626 666,414 Other (D) 33,551 107,249 49,270 Realized gain on sale of originated residential mortgage loans, net $ 1,435,054 $ 2,139,547 $ 1,165,217 Change in fair value of residential mortgage loans (271,530) (137,503) 99,908 Change in fair value of interest rate lock commitments (Note 18) (102,992) (293,699) 249,183 Change in fair value of derivative instruments (Note 18) 25,700 118,564 (115,216) Gain on originated residential mortgage loans, held-for-sale, net $ 1,086,232 $ 1,826,909 $ 1,399,092 (A) Includes residential mortgage loan origination fees of $0.6 billion, $2.3 billion and $1.7 billion in the year ended December 31, 2022, 2021 and 2020, respectively. (B) Represents settlement of forward securities delivery commitments utilized as an economic hedge for residential 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 | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
CONSUMER LOANS | CONSUMER LOANS Rithm Capital, through limited liability companies (together, the “Consumer Loan Companies”), has a co-investment in a portfolio of consumer loans. The portfolio includes personal unsecured loans and personal homeowner loans. OneMain is the servicer of the loans and provides all servicing and advancing functions for the portfolio. As of December 31, 2022, Rithm Capital owns 53.5% of the limited liability company interests in, and consolidates, the Consumer Loan Companies. Rithm Capital also purchased certain newly originated consumer loans from a third party (“Consumer Loan Seller”). These loans are not held in the Consumer Loan Companies and have been designated as performing consumer loans, held-for-investment and are grouped and presented as part of Residential Loans and Variable Interest Entity Consumer Loans Held-for-Investment, at Fair Value on the Consolidated Balance Sheets. The following table summarizes characteristics of the consumer loan portfolio: Unpaid Principal Balance Carrying Value Weighted Average Coupon Weighted Average Expected Life (Years) December 31, 2022 Total consumer loans $ 330,428 $ 363,756 17.8 % 3.4 December 31, 2021 Total consumer loans $ 449,875 $ 507,291 17.5 % 3.2 See Note 19 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 fair value of consumer loans: December 31, 2022 2021 Days Past Due UPB Fair Value Fair Value Over (Under) UPB UPB Fair Value Fair Value Over (Under) UPB Current $ 325,192 $ 358,057 $ 32,865 $ 442,481 $ 499,059 $ 56,578 90+ 5,236 5,699 463 7,394 8,232 838 Total $ 330,428 $ 363,756 $ 33,328 $ 449,875 $ 507,291 $ 57,416 The following table summarizes activities related to the carrying value of consumer loans: Balance at December 31, 2020 $ 685,575 Additional fundings (A) 29,002 Proceeds from repayments (206,078) Accretion of loan discount and premium amortization, net 18,925 Fair value adjustments due to: Changes in instrument-specific credit risk 22,915 Other factors (43,048) Balance at December 31, 2021 $ 507,291 Additional fundings (A) 29,615 Proceeds from repayments (150,301) Accretion of loan discount and premium amortization, net 13,891 Fair value adjustments due to: Changes in instrument-specific credit risk 1,540 Other factors (38,280) Balance at December 31, 2022 $ 363,756 (A) Represents draws on consumer loans with revolving privileges. |
SINGLE-FAMILY RENTAL PROPERTIES
SINGLE-FAMILY RENTAL PROPERTIES | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
SINGLE-FAMILY RENTAL PROPERTIES | SINGLE-FAMILY RENTAL PROPERTIES The following table summarizes the net carrying value of investments in single-family rental (“SFR”) properties: December 31, 2022 2021 Land $ 175,607 $ 109,152 Building 702,427 436,610 Capital improvements 118,999 40,655 Total gross investment in SFR properties 997,033 586,417 Accumulated depreciation (25,720) (6,810) Investment in SFR properties, net $ 971,313 $ 579,607 Depreciation expense for the year ended December 31, 2022 and 2021 totaled $18.9 million and $6.1 million, respectively, and is included in Other Income (Loss), Net in the Consolidated Statements of Income. As of December 31, 2022 and 2021, the carrying amount of the SFR properties includes capitalized acquisition costs of $7.7 million and $3.8 million, respectively. The following table summarizes the activity related to the net carrying value of investments in SFR properties: Balance at December 31, 2020 $ 41,271 Acquisitions and capital improvements 544,408 Dispositions — Accumulated depreciation (6,072) Balance at December 31, 2021 $ 579,607 Acquisitions and capital improvements 415,858 Dispositions (5,242) Accumulated depreciation (18,910) Balance at December 31, 2022 $ 971,313 Rithm Capital generally rents its SFR properties under non-cancelable lease agreements with a term of one 2023 $ 33,119 2024 and thereafter 954 Total $ 34,073 The following table summarizes the activity of the SFR portfolio by units: Balance at December 31, 2020 257 Acquisition of SFR units 2,294 Disposition of SFR units — Balance at December 31, 2021 2,551 Acquisition of SFR units 1,226 Disposition of SFR units (16) Balance at December 31, 2022 3,761 See Note 19 regarding the financing of SFR Properties. |
MORTGAGE LOANS RECEIVABLE
MORTGAGE LOANS RECEIVABLE | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
MORTGAGE LOANS RECEIVABLE | MORTGAGE LOANS RECEIVABLE Rithm Capital completed the Genesis acquisition in December 2021. 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. See Note 3 for further discussion regarding the Genesis acquisition. The following table summarizes Mortgage Loans Receivable outstanding by loan purpose: Carrying Value (A) % of Portfolio Loan % of Portfolio Weighted Average Yield Weighted Average Original Life (Months) Weighted Average Committed Loan Balance to Value (B) December 31, 2022 Construction $ 965,495 46.8 % 622 37.1 % 8.3 % 15.0 76.8% / 65.6% Bridge 838,539 40.6 % 701 41.8 % 8.1 % 20.1 75.3% Renovation 259,994 12.6 % 354 21.1 % 8.3 % 13.0 78.0% / 66.1% $ 2,064,028 100.0 % 1,677 100.0 % 8.2 % 16.5 N/A December 31, 2021 Construction $ 610,446 40.3 % 486 33.2 % 8.3 % 16.0 75.6% / 65.0% Bridge 716,764 47.3 % 632 43.2 % 7.8 % 14.5 73.8% Renovation 188,552 12.4 % 346 23.6 % 8.1 % 13.4 78.5% / 78.5% $ 1,515,762 100.0 % 1,464 100.0 % 8.1 % 15.2 N/A (A) Represents fair value. (B) Weighted by commitment loan-to-value (“LTV”) for bridge loans, loan-to-cost (“LTC”) or loan-to-after-repair-value (“LTARV”) for construction and renovation loans. The following table summarizes the activity for Mortgage Loans Receivables: Balance at December 31, 2020 $ — Genesis acquisition (Note 3) 1,505,635 Initial loan advances 60,125 Construction holdbacks and draws 12,856 Paydowns and payoffs (60,867) Fair value adjustments due to: Changes in instrument-specific credit risk — Other factors (1,987) Balance at December 31, 2021 $ 1,515,762 Initial loan advances 1,438,117 Construction holdbacks and draws 559,294 Paydowns and payoffs (1,405,278) Purchased loans premium amortization (43,867) Balance at December 31, 2022 $ 2,064,028 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 difference between the aggregate unpaid principal balance and the aggregate fair value of Mortgage Loans Receivable: December 31, 2022 2021 Days Past Due UPB Fair Value Fair Value Over (Under) UPB UPB Fair Value Fair Value Over (Under) UPB Current $ 2,064,028 $ 2,064,028 $ — $ 1,473,894 $ 1,515,762 $ 41,868 90+ — — — — — — $ 2,064,028 $ 2,064,028 $ — $ 1,473,894 $ 1,515,762 $ 41,868 The following table summarizes the geographic distribution of the underlying Mortgage Loans Receivable as of December 31, 2022: Percentage of Total Loan Commitment State Concentration December 31, 2022 December 31, 2021 California 52.7 % 58.9 % Washington 10.2 % 12.2 % New York 5.9 % 5.6 % Other U.S. 31.2 % 23.3 % 100.0 % 100.0 % |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | CASH, CASH EQUIVALENTS AND RESTRICTED CASH 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 21), and financing of consumer loans as well as real estate securities. Restricted cash also consists of cash the Company has pledged to cover variation margin with its financing and certain derivative counterparties. The following table summarizes restricted cash balances: December 31, 2022 2021 MSRs and servicer advances $ 69,347 $ 27,182 Real estate and other securities 4,604 15,342 Consumer loans 15,930 21,961 SFR properties 4,627 2,482 Origination and servicing 161,249 128,588 Mortgage loans receivable 25,369 — Other — 312 Total restricted cash $ 281,126 $ 195,867 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: Year Ended December 31, 2022 2021 Cash and cash equivalents $ 1,336,508 $ 1,332,575 Restricted cash 281,126 195,867 Total cash, cash equivalents and restricted cash $ 1,617,634 $ 1,528,442 |
OTHER ASSETS AND LIABILITIES
OTHER ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Other Income Assets And Liabilities | |
OTHER ASSETS AND LIABILITIES | OTHER ASSETS AND LIABILITIES Other Assets and Accrued Expenses and Other Liabilities consist of the following: Other Assets Accrued Expenses December 31, December 31, 2022 2021 2022 2021 Margin receivable, net (A) $ 20,614 $ 358,041 Margin payable $ 4,852 $ 9,821 Excess MSRs, at fair value (Note 5) 321,803 344,947 Interest payable 87,700 30,931 Servicer advance investments, at fair value (Note 6) 398,820 421,807 Accounts payable 155,492 345,901 Servicing fee receivables 128,438 117,935 Derivative liabilities (Note 18) 18,064 34,583 Principal and interest receivable 106,608 85,084 Accrued compensation and benefits 112,762 201,057 Equity investments (B) 71,388 81,052 Operating lease liabilities (Note 17) 101,225 142,620 Other receivables 146,131 233,342 Deferred tax liability 711,855 440,690 REO 19,379 21,641 Other liabilities 294,717 153,165 Goodwill (Note 16) (C) 85,199 85,199 $ 1,486,667 $ 1,358,768 Notes receivable, at fair value (D) — 60,549 Warrants, at fair value 19,346 27,354 Property and equipment 37,883 56,617 Intangible assets (Note 16) 141,413 143,133 Prepaid expenses 60,817 115,110 Operating lease right-of-use assets (Note 17) 77,329 117,131 Derivative assets (Note 18) 52,229 138,173 Loans receivable, at fair value (E) 94,401 229,631 Credit facilities receivable (F) 7,095 41,351 Loans in process and settlements in process (G) 8,849 11,681 Other assets 116,865 105,728 $ 1,914,607 $ 2,795,506 (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 funds that invest in (i) a commercial redevelopment project and (ii) operating companies in the single-family housing industry. The commercial redevelopment project is accounted for at fair value based on the net asset value of Rithm Capital’s investment. Equity investments also includes an investment in Covius Holding Inc. (“Covius”), a provider of various technology-enabled services to the mortgage and real estate industries, 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 a subordinated debt facility to Covius. The loan is accounted for under the fair value option. Electing the fair value option allows the Company to record changes in fair value in the Consolidated Statements of Income and provides users of the financial statements with better information regarding the effect of market factors. (E) 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 (see Note 24). The loans are accounted for under the fair value option. Electing the fair value option allows the Company to record changes in fair value in the Consolidated Statements of Income and provides users of the financial statements with better information regarding the effect of market factors. (F) Represents cash deposits and collections associated with certain collateral assets which are held by the lender trust until settled each month. (G) Loans in process represent timing differences in the disbursing of funds and the closing of the loan. Settlements in process represent timing differences in the receipt of funds and settlement of the loan sale. 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 Income. REO assets are managed for prompt sale and disposition at the best possible economic value. The following table presents activity related to the carrying value of investments in REO: Balance at December 31, 2020 $ 45,299 Purchases 2,464 Transfer of loans to REO 30,015 Sales (A) (60,407) Valuation (provision) reversal 4,270 Balance at December 31, 2021 $ 21,641 Purchases 210 Transfer of loans to REO 14,936 Sales (A) (18,349) Valuation (provision) reversal 941 Balance at December 31, 2022 $ 19,379 (A) Recognized when control of the property has transferred to the buyer. As of December 31, 2022, Rithm Capital had residential mortgage loans that were in the process of foreclosure with an unpaid principal balance of $75.9 million. Notes and Loans Receivable — The following table summarizes the activity for notes and loans receivable: Notes Receivable Loans Receivable Total Balance at December 31, 2020 $ 52,389 $ — $ 52,389 Fundings 6,688 250,000 256,688 Payment in Kind 5,298 4,135 9,433 Proceeds from repayments (3,188) (25,443) (28,631) Fair value adjustments due to: Changes in instrument-specific credit risk — — — Other factors (638) 939 301 Balance at December 31, 2021 $ 60,549 $ 229,631 $ 290,180 Fundings 9,000 — 9,000 Payment in Kind 3,741 9,195 12,936 Proceeds from repayments (9,000) (143,256) (152,256) Transfer to other assets (1,000) — (1,000) Fair value adjustments due to: Changes in instrument-specific credit risk (63,062) — (63,062) Other factors (228) (1,169) (1,397) Balance at December 31, 2022 $ — $ 94,401 $ 94,401 The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate fair value of notes and loans receivable: December 31, 2022 2021 Days Past Due UPB Fair Value Fair Value Over (Under) UPB Unpaid Principal Balance Fair Value Fair Value Over (Under) UPB Current $ 157,745 $ 94,401 $ (63,344) $ 289,065 $ 290,180 $ 1,115 90+ — — — — — — |
EXPENSES, CHANGES IN FAIR VALUE
EXPENSES, CHANGES IN FAIR VALUE OF INVESTMENTS AND OTHER | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
EXPENSES, CHANGES IN FAIR VALUE OF INVESTMENTS AND OTHER | EXPENSES, CHANGES IN FAIR VALUE OF INVESTMENTS AND OTHER General and Administrative expenses consists of the following: Year Ended December 31, 2022 2021 2020 Legal and professional $ 78,837 $ 102,114 $ 70,502 Loan origination 108,149 196,989 92,081 Occupancy 116,526 70,616 36,799 Subservicing 162,972 224,138 201,444 Loan servicing 11,759 16,440 14,126 Property and maintenance 93,689 69,083 42,508 Other 303,496 184,648 90,981 Total general and administrative expenses $ 875,428 $ 864,028 $ 548,441 Change in Fair Value of Investments, Net consists of the following: Year Ended December 31, 2022 2021 2020 Real estate and other securities $ 235,591 $ (400,369) $ 28,455 Residential mortgage loans (173,644) 155,758 (107,604) Derivative instruments 1,094,467 298,803 (53,467) Other (A) (48,124) (42,469) (16,142) Change in fair value of investments, net $ 1,108,290 $ 11,723 $ (148,758) (A) Includes excess MSRs, servicer advance investments, consumer loans, and other. Gain (Loss) on Settlement of Investments, Net consists of the following: Year Ended December 31, 2022 2021 2020 Gain (loss) on sale of real estate securities $ (1,735,009) $ (89,811) $ (753,713) Sale of acquired residential mortgage loans 55,298 120,680 (5,662) Settlement of derivatives 374,464 (172,581) (74,812) Liquidated residential mortgage loans (42,639) (5,946) 4,644 Sale of REO (4,148) (6,622) (21,925) Extinguishment of debt — (1,485) (66,233) Other (7,645) (78,796) (12,430) Gain (loss) on settlement of investments, net $ (1,359,679) $ (234,561) $ (930,131) Other Income (Loss), Net consists of the following: Year Ended December 31, 2022 2021 2020 Unrealized gain (loss) on secured notes and bonds payable $ 45,792 $ 12,991 $ (966) Rental revenue 54,567 13,750 2,422 Property and maintenance revenue 132,432 104,797 70,527 (Provision) reversal for credit losses on securities (7,345) 5,201 (13,404) Valuation and credit loss (provision) reversal on loans and real estate owned (7,617) 42,543 (110,208) Other income (loss) (86,517) 2,430 (83,980) Other income (loss), net $ 131,312 $ 181,712 $ (135,609) Accretion and Other Amortization as reflected on the Consolidated Statements of Cash Flows consists of the following: Year Ended December 31, 2022 2021 2020 Accretion of net discount on securities and loans $ 29,023 $ 32,670 $ 96,148 Accretion of servicer advances receivable discount and investments 42,006 1,822 55,664 Accretion of excess mortgage servicing rights income 38,036 30,855 28,352 Amortization of deferred financing costs (15,427) (14,174) (22,733) Amortization of discount on secured notes and bonds payable — (13) (388) Amortization of discount on corporate debt (1,747) (1,778) (5,503) Total accretion and other amortization $ 91,891 $ 49,382 $ 151,540 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The following table summarizes the carrying value of goodwill by reportable segment: Origination Servicing MSR Mortgage Loans Receivable Total Balance at December 31, 2020 $ 11,836 $ 12,540 $ 5,092 $ — $ 29,468 Goodwill acquired (A) — — — 55,731 55,731 Accumulated impairment loss — — — — — Balance at December 31, 2021 $ 11,836 $ 12,540 $ 5,092 $ 55,731 $ 85,199 Goodwill acquired (A) — — — — — Accumulated impairment loss — — — — — Balance at December 31, 2022 $ 11,836 $ 12,540 $ 5,092 $ 55,731 $ 85,199 (A) Refer to Note 3 for discussion regarding the Genesis acquisition. The following table summarizes the acquired identifiable intangible assets: As of December 31, Estimated Useful Lives (Years) 2022 2021 Gross Intangible Assets Customer relationships 3 to 9 $ 57,949 $ 57,949 Purchased technology 3 to 7 120,787 93,241 Trademarks / Trade names 1 to 5 10,259 10,259 188,995 161,449 Accumulated Amortization Customer relationships 12,960 6,574 Purchased technology 30,959 10,578 Trademarks / Trade names 3,663 1,164 47,582 18,316 Intangible Assets, Net Customer relationships 44,989 51,375 Purchased technology (A) 89,828 82,663 Trademarks / Trade names (B) 6,596 9,095 $ 141,413 $ 143,133 (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 definite-lived intangible assets as of December 31, 2022: Year Ending Amortization Expense 2023 $ 29,529 2024 27,101 2025 20,476 2026 16,164 2027 and thereafter 24,902 $ 118,172 |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2022 | |
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 year ended December 31, 2022, 2021 and 2020 totaled $45.2 million, $26.1 million and $13.5 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. As of December 31, 2022, future commitments under the non-cancelable leases are as follows: Year Ending Amount 2023 $ 29,631 2024 22,767 2025 16,930 2026 10,480 2027 8,630 2028 and thereafter 25,783 Total remaining undiscounted lease payments 114,221 Less: imputed interest 12,996 Total remaining discounted lease payments $ 101,225 The future commitments under the non-cancelable leases have not been reduced by the sublease rentals of $8.5 million due in the future periods. Other information related to operating leases is summarized below: December 31, 2022 2021 Weighted-average remaining lease term (years) 5.7 5.5 Weighted-average discount rate 4.0 % 4.1 % |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES Rithm Capital enters into economic hedges including interest rate swaps and 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 to-be-announced forward contract positions (“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 December 31, 2022, 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: December 31, Balance Sheet Location 2022 2021 Derivative assets Interest rate swaps (A) Other assets $ 449 $ 52 Interest rate lock commitments Other assets 16,015 114,871 Options on treasury futures Other assets — 7,778 TBAs Other assets 35,765 15,472 $ 52,229 $ 138,173 Derivative liabilities Interest rate lock commitments Accrued expenses and other liabilities $ 7,229 $ 3,093 TBAs Accrued expenses and other liabilities 10,835 31,490 $ 18,064 $ 34,583 (A) Net of $1.2 billion and $60.7 million of related variation margin accounts as of December 31, 2022 and 2021, respectively. The following table summarizes notional amounts related to derivatives: December 31, 2022 2021 Interest rate swaps (A) $ 23,085,000 $ 11,490,000 Interest rate lock commitments 2,647,747 10,653,850 TBAs, short position (B) 8,473,221 22,697,706 TBAs, long position (B) 31,500 — Treasury futures — 314,500 Options on treasury futures — 3,200,000 (A) Includes $23.1 billion notional of receive LIBOR/pay fixed of 1.9% and $0.0 billion notional of receive fixed of 0.0%/pay LIBOR with weighted average maturities of 35 months and 0 months, respectively, as of December 31, 2022. Includes $11.5 billion notional of receive LIBOR/pay fixed of 1.1% and $0.0 billion notional of received fixed of 0.0% pay LIBOR with weighted average maturities of 42 months and 0 months, respectively, as of December 31, 2021. (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 Income: Year Ended December 31, 2022 2021 2020 Servicing revenue, net (A) TBAs $ (15,205) $ 10,483 $ — Treasury futures (1,746) (23,961) — Options on treasury futures 5,635 (17,003) — (11,316) (30,481) — Gain on originated residential mortgage loans, held for sale, net (A) Interest rate lock commitments (102,992) (293,699) 249,183 TBAs 25,700 118,564 (115,243) Forward loan sale commitments — — 27 (77,292) (175,135) 133,967 Change in fair value of investments (A) Interest rate swaps 1,064,961 298,803 (53,467) TBAs 29,506 — — 1,094,467 298,803 (53,467) Gain (loss) on settlement of investments, net (B) Interest rate swaps 94,816 (136,073) (2,685) TBAs (C) 279,648 (36,508) (72,127) 374,464 (172,581) (74,812) Total gain (loss) $ 1,380,323 $ (79,394) $ 5,688 (A) Represents unrealized gain (loss). (B) Excludes $79.0 million loss and $34.7 million loss for the year ended December 31, 2022 and 2021, respectively, included within Servicing Revenue, Net (Note 6). There was no gain or loss included within Servicing Revenue, Net for the year ended December 31, 2020. (C) Excludes $1.3 billion gain, $240.6 million gain and $361.8 million loss for the year ended December 31, 2022, 2021 and 2020, respectively, included within Gain on Originated Residential Mortgage Loans, Held-for-Sale, Net (Note 9). |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | DEBT OBLIGATIONS The following table summarizes Secured Financing Agreements and Secured Notes and Bonds Payable debt obligations: December 31, 2022 December 31, 2021 Collateral Debt Obligations/Collateral 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 (C) Repurchase Agreements: Warehouse Credit Facilities-Residential Mortgage Loans (F) $ 2,603,833 $ 2,601,327 Feb-23 to Jan-25 5.9 % 0.8 $ 3,187,716 $ 3,114,791 $ 3,020,575 21.3 $ 10,138,297 Warehouse Credit Facility- Mortgage Loans Receivable (G) 1,220,662 1,220,662 Mar-23 to Dec-23 6.9 % 0.6 1,451,279 1,451,279 1,451,279 0.8 1,252,660 Agency RMBS (D) 6,821,788 6,821,788 Jan-23 to Feb-23 4.1 % 0.1 7,213,920 7,082,133 7,123,127 8.5 8,386,538 Non-Agency RMBS (E) 609,282 609,282 Jan-23 to Oct-27 6.5 % 1.1 14,824,678 946,631 946,197 7.1 656,874 SFR Properties (E) 4,677 4,677 Dec-24 7.1 % 2.0 N/A 7,765 7,765 NA 158,515 Total Secured Financing Agreements 11,260,242 11,257,736 5.0 % 0.4 20,592,884 Secured Notes and Bonds Payable Excess MSRs (H) 227,596 227,596 Aug-25 3.7 % 2.6 67,454,370 260,828 317,146 6.1 237,835 MSRs (I) 4,800,001 4,791,543 Mar-23 to Nov-27 6.1 % 2.4 532,218,484 6,811,636 8,833,825 6.9 4,234,771 Servicer Advance Investments (J) 319,276 318,445 Aug-23 to Mar-24 6.5 % 1.2 341,628 392,749 398,820 8.4 355,722 Servicer Advances (J) 2,364,757 2,361,259 Feb-23 to Nov-26 4.1 % 1.1 2,847,234 2,825,485 2,825,485 0.7 2,355,969 Residential Mortgage Loans (K) 770,897 769,988 May-24 to Jul-43 5.4 % 1.9 775,314 791,534 791,534 28.5 802,526 Consumer Loans (L) 330,772 299,498 Sep-37 2.1 % 3.3 330,397 343,947 363,725 3.5 458,580 SFR Properties 863,029 817,695 Mar-23 to Sep-27 3.6 % 3.8 N/A 963,547 963,547 N/A 199,407 Mortgage Loans Receivable 524,062 512,919 Jul 26 to Dec-26 5.4 % 3.8 569,486 569,486 569,486 0.6 — Total Secured Notes and Bonds Payable 10,200,390 10,098,943 5.2 % 2.2 0 8,644,810 Total/Weighted Average $ 21,460,632 $ 21,356,679 5.1 % 1.2 $ 631,214,506 $ 25,561,811 $ 27,612,511 $ 29,237,694 (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 $80.5 million of associated interest payable as of December 31, 2022. (D) All fixed interest rates. (E) All LIBOR or SOFR-based floating interest rates. (F) Includes $278.6 million which bear interest at an average fixed interest rate of 5.1% with the remaining having LIBOR or SOFR-based floating interest rates. (G) All LIBOR or SOFR-based floating interest rates. (H) Includes $227.6 million of corporate loans which bear interest at a fixed interest rate of 3.7%. (I) Includes $3.0 billion of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR or SOFR, and (ii) a margin ranging from 2.5% to 3.3%; and $1.8 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. (J) $1.2 billion face amount of the notes has a fixed rate while the remaining notes bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 1.2% to 3.3%. Collateral includes Servicer Advance Investments, as well as servicer advances receivable related to the MSRs and MSR Financing Receivables owned by NRM. (K) Represents (i) $20.9 million of SAFT 2013-1 mortgage-backed securities issued with fixed interest rate of 3.7% and (ii) $750.0 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 LIBOR plus 1.1%. (L) Includes the SpringCastle debt, comprising the following classes of asset-backed notes held by third parties: $277.7 million UPB of Class A notes with a coupon of 2.0% and a stated maturity date in September 2037 and $53.0 million UPB of Class B notes with a coupon of 2.7% and a stated maturity date in September 2037 (collectively, “SCFT 2020-A”). As of December 31, 2022, Rithm Capital had no outstanding secured financing agreements where the amount at risk with any individual counterparty or group of related counterparties exceeded 10% of Rithm Capital’s stockholders’ equity. The amount at risk under secured financing agreements is defined as the excess of carrying amount (or market value, if higher than the carrying amount) of the securities or other assets sold under agreement to repurchase, including accrued interest plus any cash or other assets on deposit to secure the repurchase obligation, over the amount of the repurchase liability (adjusted for accrued interest). 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 December 31, 2022, Rithm Capital has margin exposure on $11.3 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 Mortgage Loans Receivable Total Balance at December 31, 2020 $ 275,088 $ 2,691,791 $ 3,008,719 $ 13,499,636 $ 5,082,296 $ 628,759 $ 5,586 $ — $ 25,191,875 Secured Financing Agreements Acquired borrowings, net of discount (Note 3) — — — — 7,090,577 — — — 7,090,577 Borrowings — — — 64,749,425 129,676,976 — 199,713 1,278,647 195,904,761 Repayments — — — (69,206,600) (130,719,004) — — (25,987) (199,951,591) Capitalized deferred financing costs, net of amortization — — — 951 812 — (306) — 1,457 Secured Notes and Bonds Payable Acquired borrowings, net of discount — 1,045,000 76,772 — — — — — 1,121,772 Borrowings — 4,042,325 2,971,974 — 796,849 — 152,929 — 7,964,077 Repayments (37,253) (3,549,148) (3,346,873) — (974,176) (170,623) — — (8,078,073) Unrealized (gain) loss on notes, fair value — — — — (13,435) 444 — — (12,991) Capitalized deferred financing costs, net of amortization — 4,803 1,099 — (72) — — — 5,830 Balance at December 31, 2021 $ 237,835 $ 4,234,771 $ 2,711,691 $ 9,043,412 $ 10,940,823 $ 458,580 $ 357,922 $ 1,252,660 $ 29,237,694 Secured Financing Agreements Borrowings — — — 54,385,892 73,782,327 — 206,595 2,080,495 130,455,309 Repayments — — — (55,998,234) (81,320,424) — (360,433) (2,112,492) (139,791,583) Capitalized deferred financing costs, net of amortization — — — — 1,128 — — — 1,128 Secured Notes and Bonds Payable Borrowings — 2,027,637 2,804,677 — — — 879,947 524,062 6,236,323 Repayments (10,239) (1,473,037) (2,839,257) — (33,204) (123,770) (216,631) — (4,696,138) Discount on borrowings, net of amortization — — — — — — (42,030) — (42,030) Unrealized (gain) loss on notes, fair value — — — — 665 (35,312) — (11,144) (45,791) Capitalized deferred financing costs, net of amortization — 2,172 2,593 — — — (2,998) — 1,767 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 (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 December 31, 2022: Year Ending Nonrecourse (A) Recourse (B) Total 2023 $ 1,359,547 $ 11,464,276 $ 12,823,823 2024 2,143,523 1,865,962 4,009,485 2025 — 2,017,629 2,017,629 2026 — 1,798,784 1,798,784 2027 and thereafter 1,080,910 280,000 1,360,910 $ 4,583,980 $ 17,426,651 $ 22,010,631 (A) Includes secured notes and bonds payable of $4.6 billion. (B) Includes secured financing agreements and secured notes and bonds payable of $11.2 billion and $6.2 billion, respectively. Borrowing Capacity The following table summarizes borrowing capacity as of December 31, 2022: Debt Obligations/ Collateral Borrowing Capacity Balance Outstanding Available Financing (A) Secured Financing Agreements Residential mortgage loans and REO $ 4,284,838 $ 1,978,037 $ 2,306,801 Loan originations 12,461,331 1,851,134 10,610,197 Secured Notes and Bonds Payable Excess MSRs 286,380 227,596 58,784 MSRs 5,806,207 4,800,001 1,006,207 Servicer advances 3,245,669 2,684,033 561,636 Residential mortgage loans 290,714 224,504 66,210 $ 26,375,139 $ 11,765,305 $ 14,609,835 (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. Additionally, with the expected phase out of LIBOR, the Company expects the calculated rate on certain debt obligations will be changed to another published reference standard before the planned cessation of LIBOR quotations in 2023. However, the Company does not anticipate this change will have a significant effect on the terms and conditions, ability to access credit, or on its financial condition. Rithm Capital was in compliance with all of its debt covenants as of December 31, 2022. 2025 Senior Unsecured Notes On September 16, 2020, the Company, as borrower, 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 2022 103.125% 2023 101.563% 2024 and thereafter 100.000% Prior to October 15, 2022, the Company was entitled at its option on one or more occasions to redeem the 2025 Senior Notes in an aggregate principal amount not to exceed 40% of the aggregate principal amount of the 2025 Senior Notes originally issued prior to the applicable redemption date at a fixed redemption price of 106.250%. 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 year ended December 31, 2022 , the Company recognized $34.4 million of interest expense. As of December 31, 2022 , the unamortized debt issuance costs was approximately $4.9 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 debt agreement) 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 December 31, 2022, 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 | 12 Months Ended |
Dec. 31, 2022 | |
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, loss severities, credit risks and default rates), 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 December 31, 2022 were as follows: Principal Balance or Notional Amount Carrying Value Fair Value Level 1 Level 2 Level 3 Total Assets: Excess MSRs (A) $ 67,454,370 $ 321,803 $ — $ — $ 321,803 $ 321,803 MSRs and MSR financing receivables (A) 539,897,324 8,889,403 — — 8,889,403 8,889,403 Servicer advance investments 341,628 398,820 — — 398,820 398,820 Real estate and other securities 25,370,934 8,289,277 — 7,338,417 950,860 8,289,277 Residential mortgage loans, held-for-sale 117,847 101,027 — — 101,196 101,196 Residential mortgage loans, held-for-sale, at fair value 3,387,888 3,297,271 — 3,035,894 261,377 3,297,271 Residential mortgage loans, held-for-investment, at fair value 538,710 452,519 — — 452,519 452,519 Residential mortgage loans subject to repurchase 1,219,890 1,219,890 — 1,219,890 — 1,219,890 Consumer loans 330,428 363,756 — — 363,756 363,756 Derivative assets 33,174,574 52,229 — 36,214 16,015 52,229 Mortgage loans receivable (B) 2,064,028 2,064,028 — 349,975 1,714,053 2,064,028 Note receivable 63,114 — — — — — Loans receivable 94,631 94,401 — — 94,401 94,401 Cash and cash equivalents 1,336,508 1,336,508 1,336,508 — — 1,336,508 Restricted cash 281,126 281,126 281,126 — — 281,126 Other assets (C) N/A 23,370 — — 23,370 23,370 $ 27,185,428 $ 1,617,634 $ 11,980,390 $ 13,587,573 $ 27,185,597 Liabilities: Secured financing agreements $ 11,260,242 $ 11,257,737 $ — $ 11,257,737 $ — $ 11,257,737 Secured notes and bonds payable (D) 10,200,390 10,098,942 — — 9,911,778 9,911,778 Unsecured senior notes, net of issuance costs 545,056 545,056 — — 493,064 493,064 Residential mortgage loan repurchase liability 1,219,890 1,219,890 — 1,219,890 — 1,219,890 Derivative liabilities 1,062,894 18,064 — 10,835 7,229 18,064 $ 23,139,689 $ — $ 12,488,462 $ 10,412,071 $ 22,900,533 (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 Rithm Capital’s economic interests in the VIEs consolidated and accounted for under the collateralized financing entity (“CFE”) election. As of December 31, 2022, the fair value of Rithm Capital’s interests in the mortgage loans receivable securitization was $45.8 million. (C) Excludes the indirect equity investment in a commercial redevelopment project that is accounted for at fair value on a recurring basis based on the NAV of Rithm Capital’s investment. The investment had a fair value of $23.8 million as of December 31, 2022. (D) Includes SAFT 2013-1, 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 $632.4 million as of December 31, 2022. 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 December 31, 2021 were as follows: Principal Balance or Notional Amount Carrying Value Fair Value Level 1 Level 2 Level 3 Total Assets: Excess MSRs (A) $ 80,461,630 $ 344,947 $ — $ — $ 344,947 $ 344,947 MSRs and MSR financing receivables (A) 548,613,089 6,858,803 — — 6,858,803 6,858,803 Servicer advance investments 369,440 421,807 — — 421,807 421,807 Real estate and other securities 24,314,300 9,396,539 — 8,444,597 951,942 9,396,539 Residential mortgage loans, held-for-sale 144,967 132,921 — — 134,655 134,655 Residential mortgage loans, held-for-sale, at fair value 10,955,534 11,214,924 — 9,361,520 1,853,404 11,214,924 Residential mortgage loans, held-for-investment, at fair value 623,937 569,933 — — 569,933 569,933 Residential mortgage loans subject to repurchase 1,787,314 1,787,314 — 1,787,314 — 1,787,314 Consumer loans 449,875 507,291 — — 507,291 507,291 Derivative assets 47,080,263 138,173 — 23,302 114,871 138,173 Mortgage loans receivable 1,473,894 1,515,762 — — 1,515,762 1,515,762 Note receivable 60,373 60,549 — — 60,549 60,549 Loans receivable 228,692 229,631 — — 229,631 49,889 Cash and cash equivalents 1,332,575 1,332,575 1,332,575 — — 1,332,575 Restricted cash 195,867 195,867 195,867 — — 195,867 Other assets (B) N/A 39,229 3,134 — 36,095 39,229 $ 34,746,265 $ 1,531,576 $ 19,616,733 $ 13,599,690 $ 34,747,999 Liabilities: Secured financing agreements $ 20,596,842 $ 20,592,884 $ — $ 20,596,842 $ — $ 20,596,842 Secured notes and bonds payable (C) 8,676,644 8,644,810 — — 8,662,463 8,662,463 Unsecured senior notes, net of issuance costs 543,293 543,293 — — 553,581 541,516 Residential mortgage loan repurchase liability 1,787,314 1,787,314 — 1,787,314 — 1,787,314 Derivative liabilities 1,275,793 34,583 — 31,490 3,093 34,583 Contingent consideration N/A 4,951 — — 4,951 4,951 $ 31,607,835 $ — $ 22,415,646 $ 9,224,088 $ 31,639,734 (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) Excludes the indirect equity investment in a commercial redevelopment project that is accounted for at fair value on a recurring basis based on the NAV of Rithm Capital’s investment. The investment had a fair value of $28.7 million as of December 31, 2021. (C) Includes the SAFT 2013-1, MDST Trusts and SCFT 2020-A mortgage backed securities issued for which the fair value option for financial instruments was elected and resulted in a fair value of $511.1 million as of December 31, 2021. Fair value measurements categorized within Level 3 are sensitive to changes in the assumptions or methodology used to determine fair value and such changes could result in a significant increase or decrease in the fair value. The following table summarizes assets measured at fair value on a recurring basis using Level 3 inputs: Level 3 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 Total Balance at December 31, 2020 $ 410,855 $ 4,585,841 $ 538,056 $ 1,180,924 $ 289,074 $ 2,320,384 $ 685,575 $ 52,389 $ — $ 10,063,098 Transfers Transfers to Level 3 — — — — — 2,386 — — — 2,386 Acquisitions (Note 3) — 1,507,524 — — 116,403 — — — 1,505,635 3,129,562 Gains (losses) included in net income Reversal (provision) for credit losses on securities (D) — — — 5,201 — — — — — 5,201 Change in fair value of excess MSRs (D) (15,078) — — — — — — — — (15,078) Change in fair value of excess MSRs, equity method investees (D) 1,818 — — — — — — — — 1,818 Servicing revenue, net (E) — (513,686) — — — — — — — (513,686) Change in fair value of servicer advance investments — — (9,076) — — — — — — (9,076) Change in fair value of consumer loans — — — — — — (20,133) — — (20,133) Change in fair value of residential mortgage loans — — — — — 155,758 — — — 155,758 Gain (loss) on settlement of investments, net 404 — — (28,550) — — — — — (28,146) Other income (loss), net (D) (326) — — 9,136 (293,699) (1,357) — 301 — (285,945) Gains (losses) included in other comprehensive income (F) — — — 28,882 — — — — — 28,882 Interest income 20,296 — 1,678 13,740 — — 18,925 9,433 — 64,072 Purchases, sales and repayments Purchases, net (G) — 10,949 1,286,526 174,340 — 4,128,097 29,002 6,688 — 5,635,602 Proceeds from sales (984) (63,451) — (164,630) — (3,675,071) — — — (3,904,136) Proceeds from repayments (72,038) — (1,395,377) (267,101) — (487,830) (206,078) (28,631) (60,867) (2,517,922) Originations and other — 1,331,626 — — — (19,030) — 250,000 70,994 1,633,590 Balance at December 31, 2021 $ 344,947 $ 6,858,803 $ 421,807 $ 951,942 $ 111,778 $ 2,423,337 $ 507,291 $ 290,180 $ 1,515,762 $ 13,425,847 Transfers Transfers from Level 3 — — — — — (1,279,709) — (1,000) (445,403) (1,726,112) Transfers to Level 3 — — — — — 313,559 — — — 313,559 Gains (losses) included in net income Reversal (provision) for credit losses on securities (D) — — — (710) — — — — — (710) Change in fair value of excess MSRs (D) (2,962) — — — — — — — — (2,962) Change in fair value of excess MSRs, equity method investees (D) 1,526 — — — — — — — — 1,526 Servicing revenue, net (E) — 823,107 — — — — — — — 823,107 Change in fair value of servicer advance investments — — (9,950) — — — — — — (9,950) Change in fair value of real estate securities — — (16,076) — — — — — (16,076) Change in fair value of consumer loans — — — — — — (36,740) — — (36,740) Change in fair value of residential mortgage loans — — — — — (124,359) — — — (124,359) Gain (loss) on settlement of investments, net 107 — — (1,560) — — — — (43,868) (45,321) Other income (loss), net (D) (65) — — — (102,992) (35,020) — (64,459) — (202,536) Gains (losses) included in other comprehensive income (F) — — — (45,709) — — — — — (45,709) Interest income 38,035 — 42,005 15,114 — — 13,891 12,936 — 121,981 Purchases, sales and repayments Purchases, net (G) — (967) 988,847 256,500 — 2,099,549 29,615 9,000 — 3,382,544 Proceeds from sales (997) (14,282) — (11,960) — (2,405,531) — — — (2,432,770) Proceeds from repayments (58,788) — (1,043,889) (196,681) — (272,224) (150,301) (152,256) (1,234,444) (3,108,583) Originations and other — 1,222,742 — — — (5,706) — — 1,922,006 3,139,042 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 (A) Includes the recapture agreement for each respective pool, as applicable. (B) Includes 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) Gains (loss) recorded in earnings during the period are 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) The components of Servicing Revenue, Net are disclosed in Note 6. (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, 2020 $ 1,662,852 Gains (losses) included in net income Included in other income (A) (12,991) Purchases, sales and payments Payments (1,138,754) Balance at December 31, 2021 $ 511,107 Gains (losses) included in net income Included in other income (A) (34,647) Purchases, sales and payments Payments (156,974) Balance at December 31, 2022 $ 319,486 (A) Gains (loss) recorded in earnings during the period are 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 Fair value estimates of Rithm Capital’s MSRs and Excess MSRs were based on internal pricing models. The valuation technique is based on discounted cash flows. Significant inputs used in the valuations included expectations of prepayment rates, delinquency rates, recapture rates for Excess MSRs, the mortgage servicing amount or excess mortgage servicing amount of the underlying residential mortgage loans, as applicable, and discount rates that market participants would use in determining the fair values of mortgage servicing rights on similar pools of residential mortgage loans. In addition, for MSRs, significant inputs included the market-level estimated cost of servicing. Significant increases (decreases) in the discount rates, prepayment or delinquency rates, or costs of servicing, in isolation would result in a significantly lower (higher) fair value measurement, whereas significant increases (decreases) in the recapture rates for Excess MSRs or mortgage servicing amount or excess mortgage servicing amount, as applicable, in isolation would result in a significantly higher (lower) fair value measurement. Generally, a change in the delinquency rate assumption is accompanied by a directionally similar change in the assumption used for the prepayment rate. The following tables summarize certain information regarding the ranges and weighted averages of significant inputs used: December 31, 2022 Significant Inputs (A) Prepayment Rate (B) Delinquency (C) Recapture Rate (D) Mortgage Servicing Amount (E) Collateral Weighted Average Maturity (Years) (F) Excess MSRs Directly Held 2.8% – 13.5% (7.3%) 0.2% – 10.1% (3.6%) —% – 91.4% (55.4%) 6 – 31 (19) 11 – 29 (21) Excess MSRs Held through Investees 8.4% – 11.0% (9.4%) 2.9% – 5.4% (3.9%) 45.4% – 64.0% (58.7%) 15 – 26 (21) 15 – 22 (19) MSRs and MSR Financing Receivables (Note 6) (H) Agency 2.6% – 97.8% (8.0%) 0.1% – 66.7% (2.0%) — (I) 7 – 104 (30) 0 – 39 (23) Non-Agency 1.3% – 93.2% (15.0%) 1.0% – 75.0% (21.1%) — (I) 2 – 216 (46) 0 – 36 (24) Ginnie Mae 2.8% – 81.2% (10.3%) 0.2% – 80.0% (8.9%) — (I) 11 – 86 (41) 0 – 39 (27) Total/Weighted Average—MSRs and MSR Financing Receivables 1.3% – 97.8% (9.2%) 0.1% – 80.0% (5.3%) — (I) 2 – 216 (34) 0 – 39 (24) December 31, 2021 Significant Inputs (A) Prepayment Rate (B) Delinquency (C) Recapture Rate (D) Mortgage Servicing Amount (E) Collateral Weighted Average Maturity (Years) (F) Excess MSRs Directly Held 3.6% – 12.4% (6.8%) 0.1% – 9.6% (3.2%) 0% – 25.2% (7.3%) 6 – 32 (19) 11 – 28 (21) Excess MSRs Held through Investees 5.4% – 8.5% (6.7%) 0.3% – 1.6% (0.9%) 3% – 9.5% (5.7%) 15 – 26 (22) 16 – 23 (19) MSRs and MSR Financing Receivables (Note 6) (H) Agency 6% – 14.6% (10.2%) 0.1% – 2.2% (0.9%) 0% – 31.4% (10.7%) 25 – 30 (28) 0 – 40 (23) Non-Agency 6.7% – 50.4% (6.7%) 0.7% – 64.6% (11.8%) 4% – 27% (6.8%) 26 – 86 (48) 0 – 30 (24) Ginnie Mae 5.3% – 14.3% (12.6%) 1.4% – 6.3% (4.1%) 4.8% – 24.5% (12.7%) 31 – 45 (39) 0 – 30 (28) Total/Weighted Average—MSRs and MSR Financing Receivables 5.3% – 50.4% (10.2%) 0.1% – 64.6% (3.1%) 0% – 31.4% (10%) 25 – 86 (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 its 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 bps. As of December 31, 2022 and 2021, weighted average costs of subservicing of $6.80 – $7.00 ($6.90) and $6.40 – $7.20 ($7.00), respectively, per loan per month was used to value the agency MSRs. Weighted average costs of subservicing of $7.30 – $17.20 ($8.70) and $10.60 – $15.80 ($10.70), respectively, per loan per month was used to value the non-agency MSRs, including MSR Financing Receivables. Weighted average cost of subservicing of $8.30 – $8.40 ($8.30) and $8.80 – $8.90 ($8.80), respectively, 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, the Excess MSR will be paid on the total UPB of the mortgage portfolio (including both performing and delinquent loans until REO). For these pools, no delinquency assumption is used. (H) For certain pools, recapture rate represents the expected recapture rate with the successor subservicer appointed by NRM. (I) Recapture is not considered a significant input for MSRs and MSR Financing Receivables. With respect to valuing the Ocwen-serviced MSR Financing Receivables, which include a significant servicer advances receivable component, the cost of financing servicer advances receivable is assumed to be LIBOR plus 2.1%. As of December 31, 2022 and 2021, weighted average discount rates of 8.3% (range of 8.0% – 8.5%) and 7.8% (range of 7.5% – 8.0%), respectively, were used to value Rithm Capital’s investments in Excess MSRs (directly and through equity method investees). As of December 31, 2022 and 2021, weighted average discount rates of 8.3% (range of 7.6% – 9.8%) and 7.4% (range of 6.9% – 12.5%) were used to value Rithm Capital’s MSRs and MSR Financing Receivables, respectively. All of the assumptions listed have some degree of market observability, based on Rithm Capital’s knowledge of the market, relationships with market participants, and use of common market data sources. Rithm Capital uses assumptions that generate its best estimate of future cash flows for each investment in MSRs and Excess MSRs. When valuing MSRs and Excess MSRs, Rithm Capital uses the following criteria to determine the significant inputs: • Prepayment Rate : Prepayment rate projections are in the form of a “vector” that varies over the expected life of the pool. The prepayment vector specifies the percentage of the collateral balance that is expected to prepay voluntarily (i.e., pay off) and involuntarily (i.e., default) at each point in the future. The prepayment vector is based on assumptions that reflect macroeconomic conditions like home price appreciation, current level of interest rates as well as loan level factors such as the borrower’s interest rate, FICO score, loan-to-value ratio, debt-to-income ratio, vintage on a loan level basis. Rithm Capital considers historical prepayment experience associated with the collateral when determining this vector and also reviews industry research on the prepayment experience of similar loan pools. This data is obtained from remittance reports, market data services and other market sources. • Delinquency Rates : For existing mortgage pools, delinquency rates are based on the recent pool-specific experience of loans that missed their latest mortgage payments. Delinquency rate projections are in the form of a “vector” that varies over the expected life of the pool. The delinquency vector specifies the percentage of the unpaid principal balance that is expected to be delinquent each month. The delinquency vector is based on assumptions that reflect macroeconomic conditions, the historical delinquency rates for the pools and the underlying borrower characteristics such as the FICO score and loan-to-value ratio. For the recapture agreements and recaptured loans, delinquency rates are based on the experience of similar loan pools originated by Rithm Capital’s servicers and subservicers, and delinquency experience over the past year. Rithm Capital believes this time period provides a reasonable sample for projecting future delinquency rates while taking into account current market conditions. Additional consideration is given to loans that are expected to become 30 or more days delinquent. • Recapture Rates : Recapture rates are based on actual average recapture rates experienced by Rithm Capital’s servicers and subservicers on similar residential mortgage loan pools. Generally, Rithm Capital looks to three • Mortgage Servicing Amount or Excess Mortgage Servicing Amount : For existing mortgage pools, mortgage servicing amount and excess mortgage servicing amount projections are based on the actual total mortgage servicing amount, in excess of a basic fee as applicable. For loans expected to be refinanced by the related servicer or subservicer and subject to a recapture agreement, Rithm Capital considers the mortgage servicing amount or excess mortgage servicing amount on loans recently originated by the related servicer over the past three months and other general market considerations. Rithm Capital believes this time period provides a reasonable sample for projecting future mortgage servicing amounts and excess mortgage servicing amounts while taking into account current market conditions. • Discount Rate : The discount rates used by Rithm Capital are derived from market data on pricing of mortgage servicing rights backed by similar collateral. • Cost of subservicing : The costs of subservicing used by Rithm Capital are based on available market data for various loan types and delinquency statuses. Rithm Capital uses different prepayment and delinquency assumptions in valuing the MSRs and Excess MSRs relating to the original loan pools, the recapture agreements and the MSRs and Excess MSRs relating to recaptured loans. The prepayment rate and delinquency rate assumptions differ because of differences in the collateral characteristics, refinance potential and expected borrower behavior for original loans and loans which have been refinanced. The assumptions for recapture and discount rates when valuing MSRs and Excess MSRs and recapture agreements are based on historical recapture experience and market pricing. Servicer Advance Investments Valuation Rithm Capital uses internal pricing models to estimate the future cash flows related to the Servicer Advance Investments that incorporate significant unobservable inputs and include assumptions that are inherently subjective and imprecise. Rithm Capital’s estimations of future cash flows include the combined cash flows of all of the components that comprise the Servicer Advance Investments: existing advances, the requirement to purchase future advances, the recovery of advances and the right to the basic fee component of the related MSR. The factors that most significantly impact the fair value include (i) the rate at which the servicer advance balance changes over the term of the investment, (ii) the UPB of the underlying loans with respect to which Rithm Capital has the obligation to make advances and owns the basic fee component of the related MSR which, in turn, is driven by prepayment rates and (iii) the percentage of delinquent loans with respect to which Rithm Capital owns the basic fee component of the related MSR. The valuation technique is based on discounted cash flows. Significant inputs used in the valuations included the assumptions used to establish the aforementioned cash flows and discount rates that market participants would use in determining the fair values of Servicer Advance Investments. Significant increases (decreases) in the advance balance-to-UPB ratio, prepayment rate, delinquency rate, or discount rate, in isolation, would result in a significantly lower (higher) fair value measurement. Generally, a change in the delinquency rate assumption is accompanied by a directionally similar change in the assumption used for the advance balance-to-UPB ratio. The following table summarizes certain information regarding the ranges and weighted averages of significant inputs used in valuing the Servicer Advance Investments, including the basic fee component of the related MSRs: Significant Inputs Outstanding Prepayment Rate (A) Delinquency Mortgage Servicing Amount (B) Discount Collateral Weighted Average Maturity (Years) (C) December 31, 2022 1.2% – 2.2% (2.1%) 3.4% – 4.6% (4.6%) 3.4% – 19.6% (19.1%) 18.0 – 19.8 (19.8) bps 5.7% – 6.2% (5.7%) 21.9 December 31, 2021 0.7% – 1.8% (1.7%) 6.5% – 7.7% (7.7%) 8.2% – 15.0% (14.8%) 17.6 – 19.8 (19.7) bps 5.2% – 5.7% (5.2%) 22.1 (A) Projected annual weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (B) Mortgage servicing amount is net of 10.8 bps and 10.6 bps which represent the amounts Rithm Capital paid its servicers as a monthly servicing fee as of December 31, 2022 and 2021, respectively. (C) Weighted average maturity of the underlying residential mortgage loans in the pool. The valuation of the Servicer Advance Investments also takes into account the performance fee paid to the servicer, which in the case of the Buyer is based on its equity returns and therefore is impacted by relevant financing assumptions such as loan-to-value ratio and interest rate as well as advance-to-UPB ratio. All of the assumptions listed have some degree of market observability, based on Rithm Capital’s knowledge of the market, relationships with market participants, and use of common market data sources. The prepayment rate, the delinquency rate and the advance-to-UPB ratio projections are in the form of “curves” or “vectors” that vary over the expected life of the underlying mortgages and related servicer advances. Rithm Capital uses assumptions that generate its best estimate of future cash flows for each Servicer Advance Investment, including the basic fee component of the related MSR. When valuing Servicer Advance Investments, Rithm Capital uses the following criteria to determine the significant inputs: • Servicer advance balance : Servicer advance balance projections are in the form of a “vector” that varies over the expected life of the residential mortgage loan pool. The servicer advance balance projection is based on assumptions that reflect factors such as the borrower’s expected delinquency status, the rate at which delinquent borrowers re-perform or become current again, servicer modification offer and acceptance rates, liquidation timelines and the servicers’ stop advance and clawback policies. • Prepayment Rate : Prepayment rate projections are in the form of a “vector” that varies over the expected life of the pool. The prepayment vector specifies the percentage of the collateral balance that is expected to prepay voluntarily (i.e., pay off) and involuntarily (i.e., default) at each point in the future. The prepayment vector is based on assumptions that reflect macroeconomic conditions and factors such as the borrower’s FICO score, loan-to-value ratio, debt-to-income ratio, and vintage on a loan level basis. Rithm Capital considers collateral-specific prepayment experience when determining this vector. • Delinquency Rates : For existing mortgage pools, delinquency rates are based on the recent pool-specific experience of loans that missed recent mortgage payment(s) as well as loan- and borrower-specific characteristics such as the borrower’s FICO score, the loan-to-value ratio, debt-to-income ratio, occupancy status, loan documentation, payment history and previous loan modifications. Rithm Capital believes the time period utilized provides a reasonable sample for projecting future delinquency rates while taking into account current market conditions. • Mortgage Servicing Amount : Mortgage servicing amounts are contractually determined on a pool-by-pool basis. Rithm Capital projects the weighted average mortgage servicing amount based on its projections for prepayment rates. • LIBOR : The performance-based incentive fees on Mr. Cooper-serviced Servicer Advance Investments portfolios are driven by LIBOR-based factors. The LIBOR curves used are widely used by market participants as reference rates for many financial instruments. • Discount Rate : The discount rates used by Rithm Capital are derived from market data on pricing of mortgage servicing rights backed by similar collateral and the advances made thereon. Real Estate and Other Securities Valuation Rithm Capital’s securities valuation methodology and results are further detailed as follows: Fair Value Asset Type Outstanding Face Amount Amortized Cost Basis Multiple Quotes (A) Single Quote (B) Total Level December 31, 2022 Agency RMBS $ 7,463,522 $ 7,290,473 $ 7,338,417 $ — $ 7,338,417 2 Non-Agency RMBS (C) 17,907,412 947,346 950,846 14 950,860 3 Total $ 25,370,934 $ 8,237,819 $ 8,289,263 $ 14 $ 8,289,277 December 31, 2021 Agency RMBS $ 8,399,343 $ 8,663,693 $ 8,444,597 $ — $ 8,444,597 2 Non-Agency RMBS (C) 15,914,957 886,643 951,942 — 951,942 3 Total $ 24,314,300 $ 9,550,336 $ 9,396,539 $ — $ 9,396,539 (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 and 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 actually 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 50.4% 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 $ 479,406 3.5% – 15.0% (6.5%) 0.0% – 25.0% (11.1%) 0.0% – 12.0% (0.6%) 0.0% – 88.0% (10.3%) (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 t |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES Consolidated VIEs Servicer Advances Rithm Capital, through a taxable wholly owned subsidiary, is the managing member of the Buyer and owned approximately 89.3% of the Buyer as of December 31, 2022. In 2013, Rithm Capital created the Buyer to acquire the then outstanding servicing advance receivables related to a portfolio of residential mortgage loans from a third party. The Buyer is required to purchase all future servicer advances made with respect to this portfolio of residential mortgage loans and is entitled to receive cash flows from advance recoveries and a basic fee component of the related MSRs, net of subservicing compensation paid. The Buyer may call capital up to the commitment amount on unfunded commitments and recall capital to the extent the Buyer makes a distribution to the co-investors, including Rithm Capital. As of December 31, 2022, the noncontrolling third-party co-investors and Rithm Capital had previously funded their commitments, however the Buyer 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 the Buyer. Shelter Joint Ventures A wholly owned subsidiary of Newrez, Shelter Mortgage Company LLC (“Shelter”) is a mortgage originator specializing in retail originations. Shelter operates its business through a series of joint ventures (“Shelter 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 LIBOR 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 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, at Fair Value 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 December 31, 2022, 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 $349.9 million and an aggregate principal limit of approximately $479.7 million. 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. MSR Financing Facilities CHL GMSR Issuer Trust is an SPE created for the purpose of transferring a participation certificate (“MSR PC”) representing a beneficial interest in Caliber’s GNMA MSRs in exchange for a variable funding note (“MSR Financing VFN”) and a trust certificate with Caliber, as well for the issuance of term notes in exchange for cash. Caliber consolidates this SPE because it is the primary beneficiary of the VIE. The MSR PC is classified in Mortgage Servicing Rights and MSR Financing Receivables, at Fair Value and the MSR Financing VFN and term notes are classified as Secured Notes and Bonds Payable on the Consolidated Balance Sheets. The SPE uses collections from a specified portion of GNMA MSR net service fees collected to repay principal and interest and to pay the expenses of the entity. Additionally, Caliber has also transferred a participation certificate representing a beneficial interest certain of Caliber’s GNMA servicer advances (“Servicer Advance PC”) to CHL GMSR Issuer Trust in exchange for a VFN (“Servicer Advance VFN”). The transferred Servicer Advance PC is classified on the Consolidated Balance Sheets as Servicing Advances Receivable and the related liabilities as part of Accrued Expenses and Other Liabilities. CHL GMSR Issuer Trust uses collections of the pledged advances to repay principal and interest and to pay the expenses of the Servicer Advance VFN. The GMSR Issuer Trust was terminated as of December 31, 2022. The following table summarizes the carrying value and classification of the assets and liabilities of consolidated VIEs on the Consolidated Balance Sheets: December 31, 2022 The Buyer Shelter Joint Ventures Residential Mortgage Loans Consumer Loan SPVs Mortgage Loans Receivable Total 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 Consumer loans — — — 363,756 — 363,756 Mortgage loans receivable — — — — 349,975 349,975 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 December 31, 2021 The Buyer Shelter Joint Ventures Residential Mortgage Loans Consumer Loan SPVs Servicer Advance Facilities MSR Financing Facilities Total Assets Mortgage servicing rights, at fair value $ — $ — $ — $ — $ — $ 403,301 $ 403,301 Servicer advance investments, at fair value 409,475 — — — — — 409,475 Residential mortgage loans, held-for-investment, at fair value — — 93,226 — — — 93,226 Residential mortgage loans, held-for-sale, at fair value — — 798,644 — — — 798,644 Consumer loans — — — 507,291 — — 507,291 Cash and cash equivalents 33,777 37,369 2,882 — — — 74,028 Restricted cash 2,210 — 171 7,249 — — 9,630 Servicer advance facilities — — — — 94,306 — 94,306 Other assets 9 903 2,902 6,851 24,699 332,521 367,885 Total Assets 445,471 38,272 897,825 521,391 119,005 735,822 2,757,786 Liabilities Secured financing agreements (A) — — 24,683 — — — 24,683 Secured notes and bonds payable (A) 348,670 — 802,526 458,580 93,145 367,871 2,070,792 Accrued expenses and other liabilities 806 6,588 10,163 862 27,771 134 46,324 Total Liabilities $ 349,476 $ 6,588 $ 837,372 $ 459,442 $ 120,916 $ 368,005 $ 2,141,799 (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 2022 2021 Residential mortgage loan UPB and other collateral $ 12,035,403 $ 10,752,079 Weighted average delinquency (A) 4.70% 4.45% Net credit losses $ 139,908 $ 130,392 Face amount of debt held by third parties (B) $ 11,050,277 $ 9,897,879 Carrying value of bonds retained by Rithm Capital (C)(D) $ 933,189 $ 927,490 Cash flows received by Rithm Capital on these bonds $ 214,941 $ 330,197 (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 20 for details on unobservable inputs. 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 7), the Shelter JVs, (Note 9) and Consumer Loans (Note 10). Others’ interests in the equity of Rithm Capital’s consolidated subsidiaries is computed as follows: December 31, 2022 December 31, 2021 The Buyer (A) Shelter Joint Ventures Consumer Loan Companies The Buyer (A) Shelter Joint Ventures Consumer Loan Companies Total consolidated equity $ 114,180 $ 25,124 $ 91,263 $ 95,995 $ 31,684 $ 83,597 Others’ ownership interest 10.7 % 49.5 % 46.5 % 10.7 % 49.5 % 46.5 % Others’ interest in equity of consolidated subsidiary $ 12,193 $ 12,437 $ 42,437 $ 10,251 $ 15,683 $ 39,414 Others’ interests in the Rithm Capital’s net income (loss) is computed as follows: Year Ended December 31, 2022 2021 2020 The Buyer (A) Shelter Joint Ventures Consumer Loan Companies The Buyer (A) Shelter Joint Ventures Consumer Loan Companies The Buyer (A) Shelter Joint Ventures Consumer Loan Companies Net income $ 26,685 $ 5,487 $ 49,892 $ (13,937) $ 22,839 $ 51,307 $ 3,326 $ 31,188 $ 77,760 Others’ ownership interest as a percent of total 10.7 % 49.5 % 46.5 % 12.9 % 49.5 % 46.5 % 26.8 % 50.1 % 46.5 % Others’ interest in net income of consolidated subsidiaries $ 2,850 $ 2,716 $ 23,200 $ (1,800) $ 11,298 $ 23,858 $ 891 $ 15,625 $ 36,158 (A) Rithm Capital owned 89.3%, 89.3% and 73.2% of the Buyer as of the year ended December 31, 2022, 2021 and 2020, respectively. See Note 19 regarding the financing of Servicer Advance Investments. |
EQUITY AND EARNINGS PER SHARE
EQUITY AND EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
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 April 14, 2021, the Company priced its underwritten public offering of 45,000,000 shares of its common stock at a public offering price of $10.10 per share. In connection with the offering, the Company granted the underwriters an option for a period of 30 days to purchase up to an additional 6,750,000 shares of common stock at a price of $10.10 per share. On April 16, 2021, the underwriters exercised their option, in part, to purchase an additional 6,725,000 shares of common stock. The offering closed on April 19, 2021. To compensate the Former Manager for its successful efforts in raising capital for Rithm Capital, the Company granted options to the Former Manager relating to 5.2 million shares of Rithm Capital’s common stock at $10.10 per share. On September 14, 2021, the Company priced its underwritten public offering of 17,000,000 of its 7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock, par value $0.01 per share, with a liquidation preference of $25.00 per share for net proceeds of approximately $449.5 million. The offering closed on September 17, 2021. In connection with the offering, Rithm Capital granted the underwriters an option for a period of 30 days to purchase up to an additional 2,550,000 shares of preferred stock at a price of $24.2125 per share. On September 22, 2021, the underwriters exercised their option, in part, to purchase an additional 1,600,000 shares of preferred stock. To compensate the Former Manager for its successful efforts in raising capital for Rithm Capital, the Company granted options to the Former Manager relating to approximately 1.9 million shares of Rithm Capital’s common stock at $10.89 per share. In December 2022 Rithm Capital’s board of directors authorized the repurchase of up to $200.0 million of its common stock and $100.0 million of its preferred stock through December 31, 2023. 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 year ended December 31, 2022, the Company repurchased 245,878 shares of preferred stock for approximately $5.2 million. 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 for the year ended December 31, 2022. The table below summarizes preferred shares: Number of Shares Liquidation Preference (A) Dividends Declared per Share December 31, Year Ended December 31, Series 2022 2021 2022 2021 Issuance Discount Carrying Value (B) 2022 2021 2020 Series A, 7.50% issued July 2019 (C) $ 6,200 $ 6,210 $ 155,002 $ 155,250 3.15 % $ 149,822 $ 1.88 $ 1.88 $ 1.88 Series B, 7.125% issued August 2019 (C) 11,261 11,300 281,518 282,500 3.15 % 272,654 1.78 1.78 1.78 Series C, 6.375% issued February 2020 (C) 15,903 16,100 397,584 402,500 3.15 % 385,289 1.59 1.59 1.60 Series D, 7.00% issued September 2021 (D) 18,600 18,600 465,000 465,000 3.15 % 449,489 1.75 0.72 — Total $ 51,964 $ 52,210 $ 1,299,104 $ 1,305,250 $ 1,257,254 $ 7.00 $ 5.97 $ 5.26 (A) Each series has a liquidation preference 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 December 15, 2022, Rithm Capital’s board of directors declared fourth quarter 2022 preferred dividends of $0.47 per share of Preferred Series A, $0.45 per share of Preferred Series B, $0.40 per share of Preferred Series C, and $0.44 per share of Preferred Series D or approximately $2.9 million, $5.0 million, $6.3 million, and $8.1 million, respectively. Common dividends have been declared as follows: Per Share Declaration Date Payment Date Quarterly Dividend Total Amounts Distributed (millions) March 24, 2021 April 2021 $ 0.20 $ 82.9 June 16, 2021 August 2021 0.20 93.3 August 23, 2021 October 2021 0.25 116.6 December 15, 2021 January 2022 0.25 116.7 March 21, 2022 April 2022 0.25 116.7 June 17, 2022 August 2021 0.25 116.7 September 22, 2022 October 2022 0.25 118.4 December 15, 2022 January 2023 0.25 118.6 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 are exercisable in cash or on a cashless basis and expire on May 19, 2023 and are 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. The 2020 Warrants were valued using a Black-Scholes option valuation model that resulted in a fair value of approximately $53.5 million on the Issuance Date and is not subject to subsequent remeasurement. The Company used the following assumptions in the application of the Black-Scholes option valuation model: an exercise price ranging between $6.11 and $7.94, a term of 3.0 years, a risk-free interest rate of 0.24%, and volatility of 35%. The 2020 Warrants met the definition of derivatives under the guidance in ASC 815, Derivatives and Hedging ; however, because these instruments are determined to be indexed to the Company’s own stock and met the criteria for equity classification under ASC 815, the 2020 Warrants are accounted for as an equity transaction and recorded in Additional Paid-in-Capital. The 2020 Warrants have a dilutive effect on net income per share and book value to the extent that the market value per share of the Company’s common stock at the time of exercise exceeds the strike price of the 2020 Warrants. On September 16, 2022, a warrant holder that is an affiliate of the Former Manager (see Note 24) exercised warrants to purchase 23.0 million shares of common stock. The warrants were exercised on a cashless basis, resulting in the issuance of 6.9 million shares of the Company’s common stock. The table below summarizes the 2020 Warrants: Number of Warrants Adjusted Weighted Average Exercise Price Initial Adjusted (A) December 31, 2021 43.4 46.2 $ 6.49 Granted — 2.4 6.23 Exercised (21.0) (23.0) 6.30 Expired — — — December 31, 2022 22.4 25.6 6.06 (B) (A) Reflects the incremental number of additional common stock issuable upon exercise of warrants in accordance with the warrant agreement. (B) Reflects a reduction in weighted average exercise price due to anti-dilution adjustments effective for dividends in excess of $0.10 a share. Option Plan Rithm Capital has a Nonqualified Stock Option and Incentive Award Plan, as amended (the “Plan”) which provides for the grant of equity-based awards, including restricted stock, options, stock appreciation rights, performance awards, tandem awards and other equity-based and non-equity based awards, in each case to Rithm Capital’s directors, officers, service providers, consultants and advisors, and prior to the internalization the Former Manager and the directors, officers, employees, service providers, consultants and advisor of the Former Manager who perform services for Rithm Capital. Rithm Capital initially reserved 15,000,000 shares of its common stock for issuance under the Plan; on the first day of each fiscal year beginning during the 10-year term of the Plan in and after calendar year 2014, that number will be increased by a number of shares of Rithm Capital’s common stock equal to 10% of the number of shares of common stock newly issued by Rithm Capital during the immediately preceding fiscal year (and, in the case of fiscal year 2013, after the effective date of the Plan). Increases of 98,487, 5,190,335 and 9,739 were made on January 1, 2023, 2022 and 2021, respectively. Rithm Capital’s board of directors also determined to issue options to the Former Manager that were not subject to the Plan, provided that the number of shares underlying any options granted to the Former Manager in connection with capital raising efforts did not exceed 10% of the shares sold in such offering and would be subject to NYSE rules. Upon exercise, all options will be settled in an amount of cash equal to the excess of the fair market value of a share of common stock on the date of exercise over the exercise price per share unless advance approval is made to settle options in shares of common stock. Prior to January 1, 2023, upon joining the board of directors, non-employee directors were, in accordance with the Plan, granted options relating to an aggregate of 5,000 shares of common stock. The fair value of such options was not material at the date of grant. The following table summarizes outstanding options for the periods presented: December 31, 2022 2021 Held by the Former Manager 21,471,990 19,877,843 Issued to the Former Manager and subsequently assigned to certain of the Former Manager’s employees — 1,594,147 Issued to the independent directors 5,000 7,000 Total 21,476,990 21,478,990 The following table summarizes outstanding options as of December 31, 2022. The last sales price on the New York Stock Exchange for Rithm Capital’s common stock for the year ended December 31, 2022 was $8.17 per share. Recipient Date of Grant/ Exercise (A) Number of Unexercised Options Options Exercisable as of December 31, 2022 Weighted Average Exercise Price (B) Intrinsic Value of Exercisable Options as of December 31, 2022 Directors Various 5,000 5,000 $ 12.55 $ — Former Manager 2017 1,130,916 1,130,916 13.43 — Former Manager 2018 5,320,000 5,320,000 16.15 — Former Manager 2019 6,351,000 6,351,000 15.54 — Former Manager 2020 1,619,739 1,619,739 16.88 — Former Manager 2021 7,050,335 4,386,062 9.92 — Outstanding 21,476,990 18,812,717 13.84 (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 related to outstanding options for the periods presented: Number of Options Weighted Average Exercise Price December 31, 2020 14,428,655 Granted 7,051,335 $ 10.31 Exercised — — Expired (1,000) 12.36 December 31, 2021 21,478,990 Granted — — Exercised — — Expired (2,000) 13.20 December 31, 2022 21,476,990 See table above Share-Based Compensation On June 17, 2022, the Company granted the CEO a one-time equity bonus of $5.0 million to be paid by granting a fixed number of shares of the Company’s common stock. The share-settled awards vest ratably over the three-year vesting period, subject to the CEO’s continuing service to the Company. The potential issuance of the RSAs have been accounted for as an equity award. Accordingly, the Company recognizes an accrual for compensation expense as part of Compensation and Benefits expense in the Consolidated Statements of Income with an offsetting amount recognized in Additional Paid-in-Capital in the Statements of Changes in Stockholders’ Equity. Share-based compensation expense recorded for the year ended December 31, 2022 was $1.3 million. As of December 31, 2022, the total unrecognized compensation cost was $3.7 million. The following table summarizes the grants, vesting and forfeitures of RSAs: Shares Weighted Average Grant Date Fair Market Value December 31, 2021 — $ — Granted 578,034 8.65 Vested — — Forfeited — — December 31, 2022 578,034 $ 8.65 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: Year Ended December 31, 2022 2021 2020 Net income (loss) $ 983,285 $ 805,582 $ (1,357,684) Noncontrolling interests in income of consolidated subsidiaries 28,766 33,356 52,674 Dividends on preferred stock 89,726 66,744 54,295 Net income (loss) attributable to common stockholders $ 864,793 $ 705,482 $ (1,464,653) Basic weighted average shares of common stock outstanding 468,836,718 451,276,742 415,513,187 Dilutive effect of stock options, restricted stock, and common stock purchase warrants (A) 12,799,407 16,388,264 — Diluted weighted average shares of common stock outstanding 481,636,125 467,665,006 415,513,187 Basic earnings (loss) per share attributable to common stockholders $ 1.84 $ 1.56 $ (3.52) Diluted earnings (loss) per share attributable to common stockholders $ 1.80 $ 1.51 $ (3.52) (A) Stock options, restricted stock, 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 a loss has been recorded because they would have been anti-dilutive for the period presented. The Company excluded the following weighted-average potential common shares from the calculation of diluted net income (loss) per share during the applicable periods because their inclusion would have been anti-dilutive: Year Ended December 31, 2022 2021 2020 Stock options, restricted stock, and common stock purchase warrants — — 7,328,961 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
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 its 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 December 31, 2022, Rithm Capital had outstanding capital commitments related to investments in the following investment types (also refer to Note 7 for MSR investment commitments and to Note 27 for additional capital commitments entered into subsequent to December 31, 2022, 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 Newrez, 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 6 and 7 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 December 31, 2022, Rithm Capital’s estimated liability associated with representations and warranties and Ginnie Mae repurchases was $44.3 million and $1.2 billion, respectively. See Notes 6 and 9 for information on regarding the right to repurchase delinquent loans from Ginnie Mae securities and mortgage origination. • Residential Mortgage Origination Unfunded Commitments — As of December 31, 2022, the Mortgage Company was committed to fund approximately $2.6 billion of residential mortgage loans and had no forward loan sale commitments. • 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 9 for information on Rithm Capital’s residential mortgage loans. • Consumer Loans — The Consumer Loan Companies have invested in loans with an aggregate of $214.4 million of unfunded and available revolving credit privileges as of December 31, 2022. However, under the terms of these loans, requests for draws may be denied and unfunded availability may be terminated at Rithm Capital’s discretion. • Mortgage Loans Receivable — Genesis had commitments to fund up to $823.8 million of additional advances on existing mortgage loans as of December 31, 2022. 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. Environmental Costs — As a residential real estate owner, Rithm Capital is subject to potential environmental costs. At December 31, 2022, 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 19. Internalization — During the second quarter of 2022, the Company entered into the Internalization Agreement with the Former Manager. Pursuant to the Internalization Agreement, the Management Agreement was terminated effective June 17, 2022, except that certain indemnification and other obligations survive, and the Company was no longer required to pay management or incentive fees with respect to any period thereafter. In connection with the termination of the Management Agreement, the Company was required to pay $400.0 million (subject to certain adjustments) to the Former Manager (the “Termination Fee”). The Company paid $200.0 million of the Termination Fee to the Former Manager on June 17, 2022, $100.0 million on |
TRANSACTIONS WITH AFFILIATES AN
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES On June 17, 2022, the Company entered into definitive agreements with the Former Manager to internalize the Company’s management function. As part of the termination of the existing Management Agreement, the Company agreed to pay $400.0 million (subject to certain adjustments) to the Former Manager. Following the Internalization, the Company no longer pays a management or incentive fee to the Former Manager. In connection with the termination of the Management Agreement, the Company entered into a Transition Services Agreement with the Former Manager (the “Transition Services Agreement”) in order to facilitate the transition of the Company’s management functions and its operations through the earliest to occur of (i) the date on which no remaining service is to be provided under the Transition Services Agreement or (ii) December 31, 2022. Under the Transition Services Agreement, the Former Manager provided (or caused to be provided), at cost, all of the services it was previously providing to the Company immediately prior to the Effective Date (“Transition Services”). Former Manager ceased providing Transition Services as of December 31, 2022 in accordance with the Transition Services Agreement. The Transition Services primarily included information technology, legal, regulatory compliance, tax and accounting services. The Transition Services were provided for a fee intended to be equal to the Former Manager’s cost of providing the Transition Services, including the allocated cost of, among other things, overhead, employee wages and compensation and actually incurred out-of-pocket expenses, and were invoiced on a monthly basis. The Company incurred $4.9 million in costs for Transition Services during the year ended December 31, 2022, and these costs are reported in General and Administrative expense in the Consolidated Statements of Income. Prior to the Internalization and the termination of the Management Agreement on June 17, 2022, the Former Manager was entitled to receive a management fee in an amount equal to 1.5% per annum of the Company’s gross equity calculated and payable monthly in arrears in cash. In addition, the Former Manager was entitled to receive annual incentive compensation calculated in accordance with the Management Agreement. In addition to the management fee and incentive compensation, Rithm Capital was responsible for reimbursing the Former Manager for certain expenses paid by the Former Manager on behalf of Rithm Capital. On May 19, 2020, the Company entered into a three-year senior secured term loan facility agreement in the principal amount of $600.0 million and also issued common stock purchase warrants providing the lenders with the right to acquire up to 43.4 million shares of the Company’s common stock, par value $0.01 per share. Approximately 48.0% of the lenders and recipients of the warrants are funds managed by an affiliate of the Former Manager. In September 2020, the Company used the net proceeds from a private debt offering, together with cash on hand, to fully retire all of the outstanding principal balance on the term loan facility. On September 16, 2022, all of the warrants held by funds managed by an affiliate of the Former Manager were exercised on a cashless basis resulting in the issuance of 6.9 million shares of the Company’s common stock. See Note 22 to the Consolidated Financial Statements for further details. On June 30, 2021, the Company entered into a senior credit agreement and a senior subordinated credit agreement whereby the Company, and the other lenders party thereto, made term loans to an entity affiliated with funds managed by an affiliate of the Former Manager. The senior loan bears cash interest at a fixed rate equal to 10.5% per annum and the senior subordinated loan bears paid-in-kind interest at a rate equal to 16.0% per annum, subject to certain adjustments as set forth in the respective credit agreements. As of December 31, 2022, the principal balance of the Company’s portion of the senior loan and the senior subordinated loan was $31.3 million and $63.3 million, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax (benefit) expense consists of the following: Year Ended December 31, 2022 2021 2020 Current: Federal $ 4,253 $ 5,556 $ (2,197) State and local 4,096 1,470 4,084 Total current income tax expense 8,349 7,026 1,887 Deferred: Federal 227,825 130,696 17,516 State and local 43,342 20,504 (2,487) Total deferred income tax expense 271,167 151,200 15,029 Total income tax expense $ 279,516 $ 158,226 $ 16,916 Rithm Capital intends to qualify as a REIT for each of its tax years through December 31, 2022. 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 4 (Segment Reporting) for further details. The increase in income tax expense for the year ended December 31, 2022 is primarily driven by current and deferred tax expense resulting from changes in the fair value of MSRs, and swaps held within taxable entities as well as income generated by the servicing business segment. The increase in income tax expense for the year ended December 31, 2021 is primarily driven by current and deferred tax expense resulting from changes in the fair value of loans, MSRs, and swaps held within taxable entities as well as income generated by the servicing and origination business segments. The difference between Rithm Capital’s reported provision for income taxes and the U.S. federal statutory rate of 21.0% is as follows: December 31, 2022 2021 2020 Provision at the statutory rate 21.00 % 21.00 % 21.00 % Non-taxable REIT income (3.36) % (7.38) % (26.44) % State and local taxes 4.05 % 3.86 % 3.70 % Return to provision — % (1.10) % 0.12 % Other 0.44 % 0.05 % 0.45 % Total provision 22.13 % 16.43 % (1.17) % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liability are presented below: December 31, 2022 2021 Deferred tax assets: Net operating losses and tax credit carryforwards (A) $ 23,627 $ 76,642 Basis differences related to assets and investments 32,447 85,104 Goodwill 26,289 30,485 Accrued expenses 44,572 20,171 Other 1,573 4,632 Total deferred tax assets 128,508 217,034 Less: valuation allowance — — Net deferred tax assets $ 128,508 $ 217,034 Deferred tax liabilities: Mortgage servicing rights $ (791,691) $ (594,801) Basis differences related to assets and investments (26,832) (21,672) Fixed asset depreciation (19,302) (14,495) Unrealized mark to market — (26,021) Other (2,538) (735) Total deferred tax (liability) $ (840,363) $ (657,724) Net deferred tax assets (liability) $ (711,855) $ (440,690) (A) As of December 31, 2022, Rithm Capital’s TRSs had approximately $50.0 million of net operating loss carryforwards for federal and state income tax purposes which may be available to offset future taxable income, if and when it arises. Approximately, $12.8 million of federal net operating losses are subject to an annual Internal Revenue Code Section 382 limitation. The federal and state net operating loss carryforwards will begin to expire between 2027 and 2041. The utilization of the net operating loss carryforwards to reduce future income taxes will depend on the TRSs ability to generate sufficient taxable income prior to the expiration of the carryforward period. In assessing the realizability of deferred tax assets, Rithm Capital considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. As of December 31, 2022, the Company believes it is more likely than not that it will fully realize its deferred tax assets. Rithm Capital and its TRSs file income tax returns with the U.S. federal government and various state and local jurisdictions. Generally, Rithm Capital is no longer subject to tax examinations by tax authorities for tax years ended prior to December 31, 2019. Rithm Capital recognizes tax benefits for uncertain tax positions only if it is more likely than not that the position is sustainable based on its technical merits. Interest and penalties on uncertain tax positions are included as a component of the provision for income taxes on the consolidated statements of operations. As of December 31, 2022, Rithm Capital has no material uncertainties to be recognized. Rithm Capital does not believe that it is reasonably possible that the total amount of unrecognized tax benefits will significantly change within 12 months of the reporting date. Common stock distributions were taxable as follows: Year Dividends Ordinary Long-Term Return 2022 (A) $ 0.41 41.47 % — % 58.53 % 2021 (B) $ 0.50 58.84 % — % 41.16 % 2020 (C) $ 0.62 78.01 % — % 21.99 % (A) The entire $0.25 per share dividend declared in December 2022 and paid in January 2023 is treated as received by stockholders in 2023. (B) The entire $0.25 per share dividend declared in December 2021 and paid in January 2022 is treated as received by stockholders in 2022. (C) The entire $0.20 per share dividend declared in December 2020 and paid in January 2021 is treated as received by stockholders in 2021. Series A Preferred stock distributions were as follows: Year Dividends Ordinary Long-Term Return 2022 (A) $ 1.88 100 % — % — % 2021 (B) $ 1.88 100 % — % — % 2020 (C) $ 1.88 100 % — % — % (A) The entire $0.47 per share dividend declared in December 2022 and paid in January 2023 is treated as received by stockholders in 2023. (B) The entire $0.47 per share dividend declared in December 2021 and paid in January 2022 is treated as received by stockholders in 2022. (C) The entire $0.47 per share dividend declared in December 2020 and paid in January 2021 is treated as received by stockholders in 2021. Series B Preferred stock distributions were as follows: Year Dividends Ordinary Long-Term Return 2022 (A) $ 1.78 100 % — % — % 2021 (B) $ 1.78 100 % — % — % 2020 (C) $ 1.78 100 % — % — % (A) The entire $0.45 per share dividend declared in December 2022 and paid in January 2023 is treated as received by stockholders in 2023. (B) The entire $0.45 per share dividend declared in December 2021 and paid in January 2022 is treated as received by stockholders in 2022. (C) The entire $0.45 per share dividend declared in December 2020 and paid in January 2021 is treated as received by stockholders in 2021. Series C Preferred stock distributions were as follows: Year Dividends Ordinary Long-Term Return 2022 (A) $ 1.59 100 % — % — % 2021 (B) $ 1.59 100 % — % — % 2020 (C) $ 1.20 100 % — % — % (A) The entire $0.40 per share dividend declared in December 2022 and paid in January 2023 is treated as received by stockholders in 2023. (B) The entire $0.40 per share dividend declared in December 2021 and paid in January 2022 is treated as received by stockholders in 2022. (C) The entire $0.40 per share dividend declared in December 2020 and paid in January 2021 is treated as received by stockholders in 2021. Series D Preferred stock distributions were as follows: Year Dividends Ordinary Long-Term Return 2022 (A) $ 1.75 100 % — % — % 2021 (B) $ 0.28 100 % — % — % (A) The entire $0.44 per share dividend declared in December 2022 and paid in January 2023 is treated as received by stockholders in 2023. (B) The entire $0.28 per share dividend declared in December 2021 and paid in January 2022 is treated as received by stockholders in 2022. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGESIn connection with the Internalization and the termination of the Management Agreement, the Company agreed to pay its Former Manager $400.0 million (subject to certain adjustments), with $200.0 million paid on June 17, 2022, $100.0 million on September 15, 2022, and $100.0 million on December 15, 2022 (less an agreed amount payable by the Former Manager to the Company related to the pre-Internalization portion of certain annual bonuses for 2022). See Notes 1 and 24 for additional discussion. The restructuring charge paid to the Former Manager is reflected in Termination Fee to Affiliate expense in the Consolidated Statements of Income for the year ended December 31, 2022. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSThese financial statements include a discussion of material events that have occurred subsequent to December 31, 2022 (referred to as “subsequent events”) through the issuance of these consolidated financial statements. Events subsequent to that date have not been considered in these financial statements. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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 Notes 2 and 25 for additional information regarding Rithm Capital’s taxable REIT subsidiaries. Income Taxes — Rithm Capital operates so as to qualify as a REIT under the requirements of the Internal Revenue Code of 1986, as amended. Requirements for qualification as a REIT include various restrictions on ownership of Rithm Capital’s stock, requirements concerning distribution of taxable income and certain restrictions on the nature of assets and sources of income. A REIT must distribute at least 90% of its taxable income to its stockholders (subject to certain adjustments). Distributions may extend until timely filing of Rithm Capital’s tax return in the subsequent taxable year. Qualifying distributions of taxable income are deductible by a REIT in computing taxable income. Certain activities of Rithm Capital are conducted through taxable REIT subsidiaries (“TRSs”) and therefore are subject to federal and state income taxes. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases upon the change in tax status. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Rithm Capital recognizes tax benefits for uncertain tax positions only if it is more likely than not that the position is sustainable based on its technical merits. Interest and penalties on uncertain tax positions are included as a component of the provision for income taxes in the Consolidated Statements of Income. |
Segment Reporting | As of December 31, 2022, 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. |
Basis of Accounting | Basis of Accounting — The accompanying consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP’’ or “U.S. GAAP”). The consolidated financial statements include the accounts of Rithm Capital and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. |
Consolidation, Variable Interest Entities | Rithm Capital consolidates those entities in which it has control over significant operating, financial and investing decisions of the entity, as well as those entities deemed to be variable interest entities (“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 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. |
Restructuring Charges | Restructuring Charges — The termination fee payment to the Former Manager under the Internalization Agreement is recorded within Termination Fee to Affiliate in the Consolidated Statements of Income. See Note 26 for additional discussion of the restructuring charges related to the Internalization. |
Risks and Uncertainties | Risks and Uncertainties — In the normal course of business, Rithm Capital encounters primarily two significant types of economic risk: credit and market. 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 industries are operating 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. |
Income Tax Uncertainties | 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 |
Business Combinations and Assets Acquisitions | Business Combinations and Assets Acquisitions — When the assets acquired and liabilities assumed constitute a business, then the acquisition is a business combination. If substantially all of the fair value of the gross asset acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the asset is not considered a business. Business combinations are accounted for under ASC 805, Business Combinations , (“ASC 805”) using the acquisition method which requires, among other things, that the assets acquired and liabilities assumed be recognized at fair value as of the acquisition date. In a business combination, the initial allocation of the purchase price is considered preliminary and therefore subject to change until the end of the measurement period (up to one year from the acquisition date). Goodwill is calculated as the excess of the consideration transferred over the net assets acquired that meet the criteria for separate recognition and represents the estimated future economic benefits arising from these and other assets acquired that could not be individually identified or do not qualify for recognition as a separate asset. Likewise, a bargain purchase gain is recognized in current earnings when the aggregate fair value of the consideration transferred and any noncontrolling interests in the acquiree is less than the fair value of the identifiable net assets acquired. Acquisition related costs are expensed as incurred. The results of operations of acquired businesses are included from the date of acquisition. Common control transactions include a transfer of net assets or an exchange of equity interests between entities under the control of the same parent. Common control transactions have characteristics that are similar to a business combination but do not meet the requirements to be accounted for as a business combination. The accounting and reporting for a transaction between entities under common control is addressed in the ASC 805-50, Transactions Between Entities Under Common Control |
Investment Consolidation and Transfers of Financial Assets | Investment Consolidation and Transfers of Financial Assets — For each investment made, the Company evaluates the underlying entity that issued the securities acquired or to which the Company makes a loan to determine the appropriate accounting. A similar analysis is performed for each entity with which the Company enters into an agreement for management, servicing or related services. In performing the analysis, the Company refers to guidance in ASC 810-10, Consolidation . In situations where the Company is the transferor of financial assets, the Company refers to the guidance in ASC 860-10, Transfers and Servicing . In VIEs, an entity is subject to consolidation under ASC 810-10 if the equity investors either do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support, are unable to direct the entity’s activities or are not exposed to the entity’s losses or entitled to its residual returns. VIEs within the scope of ASC 810-10 are required to be consolidated by their primary beneficiary. The primary beneficiary of a VIE is determined to be the party that has both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. This determination can sometimes involve complex and subjective analyses. Further, ASC 810-10 also requires ongoing assessments of whether an enterprise is the primary beneficiary of a VIE. In accordance with ASC 810-10, all transferees, including variable interest entities, must be evaluated for consolidation. If the Company determines that consolidation is not required, it will then assess whether the transfer of the underlying assets would qualify as a sale, should be accounted for as secured financings under GAAP, or should be accounted for as an equity method investment, depending on the circumstances. A Special Purpose Entity (“SPE”) is an entity designed to fulfill a specific limited need of the company that organized it. SPEs are often used to facilitate transactions that involve securitizing financial assets or resecuritizing previously securitized financial assets. The objective of such transactions may include obtaining non-recourse financing, obtaining liquidity or refinancing the underlying securitized financial assets on improved terms. Securitization involves transferring assets to an SPE to convert all or a portion of those assets into cash before they would have been realized in the normal course of business through the SPE’s issuance of debt or equity instruments. Investors in an SPE usually have recourse only to the assets in the SPE and depending on the overall structure of the transaction, may benefit from various forms of credit enhancement, such as over-collateralization in the form of excess assets in the SPE, priority with respect to receipt of cash flows relative to holders of other debt or equity instruments issued by the SPE, or a line of credit or other form of liquidity agreement that is designed with the objective of ensuring that investors receive principal and/or interest cash flow on the investment in accordance with the terms of their investment agreement. The Company may periodically enter into transactions in which it transfers assets to a third party. Upon a transfer of financial assets, the Company will sometimes retain or acquire subordinated interests in the related assets. Pursuant to ASC 860-10, a determination must be made as to whether a transferor has surrendered control over transferred financial assets. That determination must consider the transferor’s continuing involvement in the transferred financial asset, including all arrangements or agreements made contemporaneously with, or in contemplation of, the transfer, even if they were not entered into at the time of the transfer. The financial components approach under ASC 860-10 limits the circumstances in which a financial asset, or portion of a financial asset, should be derecognized when the transferor has not transferred the entire original financial asset to an entity that is not consolidated with the transferor in the financial statements being presented and/or when the transferor has continuing involvement with the transferred financial asset. It defines the term “participating interest” to establish specific conditions for reporting a transfer of a portion of a financial asset as a sale. Under ASC 860-10, after a transfer of financial assets that meets the criteria for treatment as a sale-legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint and transferred control-an entity recognizes the financial and servicing assets it acquired or retained and the liabilities it has incurred, derecognizes financial assets it has sold and derecognizes liabilities when extinguished. The transferor would then determine the gain or loss on sale of financial assets by allocating the carrying value of the underlying mortgage between securities or loans sold and the interests retained based on their fair values. The gain or loss on sale is the difference between the cash proceeds from the sale and the amount allocated to the securities or loans sold. When a transfer of financial assets does not qualify for sale accounting, ASC 860-10 requires the transfer to be accounted for as a secured borrowing with a pledge of collateral. From time to time, the Company may securitize mortgage loans it holds if such financing is available. Depending upon the structure of the securitization transaction, these transactions will be recorded in accordance with ASC 860-10 and will be accounted for as either a sale and the loans will be removed from the Consolidated Balance Sheets or as a financing and the loans will remain on the Consolidated Balance Sheets. ASC 860-10 is a standard that may require the Company to exercise significant judgment in determining whether a transaction should be recorded as a sale or a financing. 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. |
Excess MSRs | Excess MSRs — Excess MSRs refer to the excess servicing spread related to mortgage servicing rights, whose underlying collateral is securitized in a trust. Upon acquisition, Rithm Capital has elected to record each of such investments at fair value. Rithm Capital elected to record its investments at fair value in order to provide users of the financial statements with better information regarding the effects of prepayment risk and other market factors on Excess MSRs. Under this election, Rithm Capital records a valuation adjustment on its Excess MSRs on a quarterly basis to recognize the changes in fair value in net income. Excess MSRs are aggregated into pools as applicable; each pool of Excess MSRs is accounted for in the aggregate. Interest income for Excess MSRs is accreted into earnings on an effective yield or “interest” method, based upon the expected excess mortgage servicing amount through the expected life of the underlying mortgages. Changes to expected cash flows result in a cumulative retrospective adjustment, which will be recorded in the period in which the change in expected cash flows occurs. Under the retrospective method, the interest income recognized for a reporting period is measured as the difference between the amortized cost basis at the end of the period and the amortized cost basis at the beginning of the period, plus any cash received during the period. The amortized cost basis is calculated as the present value of estimated future cash flows using an effective yield, which is the yield that equates all past actual and current estimated future cash flows to the initial investment. In addition, Rithm Capital’s policy is to recognize interest income only on its Excess MSRs in existing eligible underlying mortgages. The difference between the fair value of Excess MSRs and their amortized cost basis is recorded as Change in Fair Value of Investments. Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the Excess MSRs, and therefore may differ from their effective yields. Excess MSRs is grouped and presented as part of Other Assets on the Consolidated Balance Sheets. |
MSRs | MSRs and MSR Financing Receivables — MSRs represent the contractual right to service residential mortgage loans. The Company recognizes MSRs created through the sale of loans it originates. Under the accounting guidance for transfers and servicing, the Company initially measures a mortgage servicing asset that qualifies for separate recognition at fair value on the date of transfer. Rithm Capital elected to record its investments at fair value in order to provide users of the financial statements with better information regarding the effects of prepayment risk and other market factors on MSRs. Under this election, Rithm Capital records a valuation adjustment on its MSRs on a quarterly basis to recognize the changes in fair value in net income. MSRs are aggregated into pools as applicable; each pool of MSRs is accounted for in the aggregate. Income from MSRs is |
MSR Financing Receivables | In certain cases, Rithm Capital has legally purchased MSRs or the right to the economic interest in MSRs; however, Rithm Capital has determined that the purchase agreement would not be treated as a sale under GAAP. Therefore, rather than recording an investment in MSRs, Rithm Capital records an investment in MSR Financing Receivables. Income from this investment (net of subservicing fees) is recorded as interest income and is grouped and presented as part of Servicing Revenue, Net in the Consolidated Statements of Income. Additionally, Rithm Capital has elected to measure MSR Financing Receivables at fair value, with changes in fair value flowing through Servicing Revenue, Net in the Consolidated Statements of Income. |
Servicer Advance Investments | Servicer Advance Investments — Rithm Capital accounts for its Servicer Advance Investments similarly to its Excess MSRs. Interest income for Servicer Advance Investments is accreted into earnings on an effective yield or “interest” method, based upon the expected aggregate cash flows of the Servicer Advance Investments, including the basic fee component of the related MSR (but excluding any Excess MSR component) through the expected life of the underlying mortgages, net of a portion of the basic fee component of the MSR that Rithm Capital remits to the servicer as compensation for the servicer’s servicing activities. Changes to expected cash flows result in a cumulative retrospective adjustment, which is recorded in the period in which the change in expected cash flows occurs. Refer to “—Excess MSRs” for a description of the retrospective method. Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the Servicer Advance Investments, and therefore may differ from their effective yields. Servicer Advance Investments is grouped and presented as part of Other Assets on the Consolidated Balance Sheets. |
Real Estate and Other Securities | Real Estate and Other Securities — Agency and Non-Agency RMBS are classified as either available-for-sale or accounted for under the fair value option. The Company determines the appropriate classification of its securities at the time they are acquired and evaluates the appropriateness of such classifications at each balance sheet date. If classified as available-for-sale, investments are carried at fair value, with net unrealized gains or losses reported as a component of accumulated other comprehensive income. If classified under the fair value option, changes in fair value are recorded in the Consolidated Statements of Income as a component of Change in Fair Value of Investments. Fair value is determined under the guidance of ASC 820, Fair Value Measurements and Disclosures . Management’s judgment is used to arrive at the fair value of the Company’s RMBS investments, taking into account prices obtained from third-party pricing providers and other applicable market data. The third-party pricing providers use pricing models that generally incorporate such factors as coupons, primary and secondary mortgage rates, rate reset periods, issuer, prepayment speeds, credit enhancements and expected life of the security. The Company’s application of ASC 820 guidance is discussed in further detail in Note 20. Investment securities transactions are recorded on the trade date. At disposition, the net realized gain or loss is determined on the basis of the cost of the specific investment and is included in net income. There are several different accounting models that may be applicable for purposes of the recognition of interest income on RMBS depending on whether the security is designated as available-for-sale or fair value option. The following accounting models apply to RMBS classified as available-for-sale: (i) RMBS of high credit quality rated ‘AA’ or higher that, at the time of purchase, the Company expects to collect all contractual cash flows and the security cannot be contractually prepaid in such a way that the Company would not recover substantially all of its recorded investment. (ii) Non-Agency RMBS which are not of high credit quality at the time of purchase or that can be contractually prepaid or otherwise settled in such a way that the Company would not recover substantially all of its recorded investment. For RMBS of high credit quality accounted for under (i) above, the Company recognizes interest income by applying the permitted “interest method,” whereby purchase premiums and discounts are amortized and accreted, respectively, as an adjustment to contractual interest income accrued at each security’s stated coupon rate. The interest method is applied at the individual security level based upon each security’s effective interest rate. The Company calculates each security’s effective interest rate at the time of purchase by solving for the discount rate that equates the present value of that security's remaining contractual cash flows (assuming no principal prepayments) to its purchase price. Because each security’s effective interest rate does not reflect an estimate of future prepayments, the Company refers to this manner of applying the interest method as the “contractual effective interest method.” When applying the contractual effective interest method to its investments in RMBS, as principal prepayments occur, a proportional amount of the unamortized premium or discount is recognized in interest income such that the contractual effective interest rate on the remaining security balance is unaffected. For Non-Agency RMBS accounted for under (ii) above, the Company recognizes interest income by applying the required prospective level-yield methodology. Interest income under this methodology is impacted by management judgments around both the amount and timing of credit losses (defaults) and prepayments. Consequently, interest income on these Non-Agency RMBS is recognized based on the timing and amount of cash flows expected to be collected, as opposed to being based on contractual cash flows. These securities are generally purchased at a discount to the principal amount. At the original acquisition date, the Company estimates the timing and amount of cash flows expected to be collected and calculates the present value of those amounts to the Company’s purchase price. In each subsequent balance sheet date, the Company revises its estimates of the remaining timing and amount of cash flows expected to be collected. If there is a positive change in the amount and timing of future cash flows expected to be collected from the previous estimate, the effective interest rate in future accounting periods may increase resulting in an increase in the reported amount of interest income in future periods. A positive change in the amount and timing of future cash flows expected to be collected is considered to have occurred when the net present value of future cash flows expected to be collected has increased from the previous estimate. This can occur from a change in either the timing of when cash flows are expected to be collected (i.e., from changes in prepayment speeds or the timing of estimated defaults) or in the amount of cash flows expected to be collected (i.e., from reductions in estimates of future defaults). If there is a negative or adverse change in the amount and timing of future cash flows expected to be collected from the previous estimate, and the security's fair value is below its amortized cost, an impairment loss equal to the adverse change in cash flows expected to be collected, discounted using the security's effective rate before impairment, is required to be recorded in current period earnings. Additionally, while the effective interest rate used to accrete interest income after an impairment has been recognized will generally be the same, the amount of interest income recorded in future periods will decline because of the reduced balance of the amortized cost basis of the investment to which such effective interest rate is applied. The following accounting models apply to RMBS accounted for under the fair value option: (iii) RMBS of high credit quality rated ‘AA’ or higher that, at the time of purchase, the Company expects to collect all contractual cash flows and the security cannot be contractually prepaid in such a way that the Company would not recover substantially all of its recorded investment. (iv) Non-Agency RMBS which are not of high credit quality at the time of purchase or that can be contractually prepaid or otherwise settled in such a way that the Company would not recover substantially all of its recorded investment. Interest income on RMBS accounted for in (iii) above is recognized based on the stated coupon rate and the outstanding principal amount. The original purchase premium or discount is not amortized or accreted as part of interest income but rather reflected as part of the security’s fair value. Interest income on Non-Agency RMBS accounted for in (iv) above is recognized in accordance with the model described in (ii) above. In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (“CECL”). This new guidance changed how entities measure credit losses for most financial assets that are not measured at fair value with changes in fair value recognized through net income. The Company adopted the new guidance as of January 1, 2020. Subsequent to the adoption of CECL on January 1, 2020, the Company evaluates its RMBS classified as available-for-sale on a quarterly basis to assess whether a decline in the fair value below the amortized cost basis should be recognized in net income or other comprehensive income. The presence of an impairment is based upon a fair value decline below a security’s amortized cost basis and a corresponding adverse change in expected cash flows due to credit related factors as well as non-credit factors, such as changes in interest rates and market spreads. A security is considered to be impaired if the Company (i) intends to sell the security, (ii) will more likely than not be required to sell the security before recovering its cost basis, or (iii) does not expect to recover the security’s entire amortized cost basis, even if the Company does not intend to sell the security, or the Company |
Residential Mortgage Loans and Consumers Loans | Residential Mortgage Loans and Consumer Loans — The Company's loan portfolio primarily consists of residential mortgage and consumer loans. The Company’s loans are classified as (i) held-for-investment at fair value, (ii) held-for-sale at fair value or (iii) held-for-sale at lower of cost or fair value. Loans are also eligible to be accounted for under the fair value option which are recorded on the Consolidated Balance Sheets at fair value and the periodic changes in fair value is recorded as a component of Change in Fair Value of Investments in the Consolidated Statements of Income. When the Company has the intent and ability to hold loans for the foreseeable future or to maturity/payoff, such loans are classified as held for investment. When the Company has the intent to sell loans, such loans are classified as held for sale. For originated residential mortgage loans measured at fair value, Rithm Capital reports the change in the fair value within Gain on Originated Residential Mortgage Loans, Held-for-Sale, Net in the Consolidated Statements of Income. Fair value is generally determined using a market approach by utilizing either (i) the fair value of securities backed by similar residential mortgage loans, adjusted for certain factors to approximate the fair value of a whole residential 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. For acquired residential mortgage loans measured at fair value, Rithm Capital reports the change in the fair value within Change in Fair Value of Investments in the Consolidated Statements of Income. Fair value is generally determined by discounting the expected future cash flows using inputs such as default rates, prepayment speeds and discount rates. For loans measured at the lower of cost or fair value, the Company accounts for any excess of cost over fair value as a valuation allowance and include changes in the valuation allowance in Other Income (Loss) in the Consolidated Statements of Income in the period in which the change occurs. Purchase price discounts or premiums are deferred in a contra loan account until the related loan is sold. The deferred discounts or premiums are an adjustment to the basis of the loan and are included in the quarterly determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. Interest income on mortgage loans is accrued based on the unpaid principal balance and the contractual interest rate. Interest earned on mortgage loans are reported in Interest Income in the Consolidated Statements of Income. If it’s probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the original contractual terms of the loan agreement, or if the loan becomes 90 days delinquent, the Company will reverse all prior accrued and unpaid interest on such mortgage loan. The Company will return loans to accrual status only when we reinstate the loan and there is no significant uncertainty as to collectability. Rithm Capital elected to apply the fair value option for all consumer loans. The fair value option provides an election which allows a company to irrevocably elect fair value for certain financial asset and liabilities on an instrument-by-instrument basis. The Company elected the fair value option for these loans to better align reported results with the underlying economic changes in value of the loans on the Company’s Consolidated Balance Sheets. Unrealized gains (losses) from the change in fair value of consumer loans are recognized in Change in Fair Value of Investments in the Consolidated Statements of Income. Realized gains (losses) are recorded in Gain on Settlement of Investments, Net in the Consolidated Statements of Income. Interest income is recognized over the life of the loan using the effective interest method and is recorded on the accrual basis. The Company’s residential mortgage loans and consumer loans are carried at fair value or the lower of cost or fair value. As a result, these loans are not subject to an allowance for credit losses under the CECL impairment model. A loan is determined to be past due when a monthly payment is due and unpaid for 30 days or more. Loans, other than PCD loans, are placed on nonaccrual status and considered non-performing when full payment of principal and interest is in doubt, |
Single-Family Rental (“SFR”) Properties, Net | Single-Family Rental (“SFR”) Properties, Net — Purchases of SFR properties are accounted for as asset acquisitions and recorded at their purchase price, which is allocated between land, building and improvements, and in-place lease intangibles (when a resident is in place at the acquisition date) based upon their relative fair values at the date of acquisition. The purchase price for purposes of this allocation is inclusive of acquisition costs which typically include legal fees, title fees, payments made to cure tax, utility, HOA, as well as other closing costs. SFR properties are classified as held for investment and carried at cost less accumulated depreciation expense and impairment. From time to time, the Company may identify SFR properties to be sold. If the Company identifies a property to be sold, depreciation on the property is ceased, the property is measured at the lower of its carrying amount or its fair value less estimated costs to sell, and is presented separately from SFR properties classified as held for investment. Costs to acquire, renovate, and prepare SFR properties to be leased are capitalized as a component of each residential rental real estate property using specific identification and relative allocation methodologies, including renovation costs and other costs associated with activities that are directly related to preparing the properties for use as rental real estate. Other costs include interest costs, property taxes, property insurance, utilities, and HOA fees. The capitalization period associated with renovation activities begins at the time that such activities commence and conclude at the time that an SFR property is available to be leased. Once a property is ready for its intended use, expenditures for ordinary maintenance and repairs thereafter are expensed to operations as incurred, while expenditures that improve or extend the life of a property, such as certain furniture and fixtures additions, are capitalized. The determination of which costs to capitalize requires judgment and can involve many factors with no one factor necessarily determinative. Expenditures for repairs and maintenance recognized immediately are included in General and Administrative expenses in the Company’s Consolidated Statements of Income. Except for land, costs capitalized in connection with SFR property acquisitions are depreciated over their estimated useful lives on a straight-line basis. The depreciation period commences upon the completion of renovation-related activities or upon the completion of improvements made on an ongoing basis. For those costs capitalized in connection with residential property acquisitions and renovation activities and those capitalized on an ongoing basis, the average useful life is approximately 15 years. SFR properties are continuously monitored to assess whether there have been any events or changes in circumstances indicating that the carrying amount may be impaired and not recoverable. Significant indicators of impairment may include, but are not limited to, declines in home values, rental rates and occupancy percentages, as well as significant changes in the economy. To the extent an event or change in circumstance is identified, an SFR property is considered to be impaired only if its carrying value cannot be recovered through estimated future undiscounted cash flows from the use and eventual disposition of the property. To the extent an impairment has occurred, the carrying amount is adjusted to its estimated fair value. Impairment charges are included in Other Income (Loss) in the Company’s Consolidated Statements of Income. Under ASC 842, Leases , an allowance for doubtful accounts for estimated losses is not permitted. Rather, when collectability is not deemed probable, the Company writes-off the tenant’s receivables and limits lease income to cash received. Revenues associated with SFR properties consist of rents collected under lease agreements, net of any concessions and bad debt (including write-offs, credit reserves, and uncollectible amounts) and other income, including tenant reimbursements for utilities and other charge-backs such as late fees and non-refundable deposits. Leases typically have a term of one to two years. Rental revenues are included in Other Income in the Company’s Consolidated Statements of Income. All of the Company’s SFR properties are managed by an external property manager. |
Mortgage Loans Receivable | Mortgage Loans Receivable — Rithm Capital, through its wholly owned subsidiary Genesis, originates and manages a portfolio of primarily short-term mortgage loans to fund the construction and development of, or investment in, residential properties. Rithm Capital elected to apply the fair value option for all mortgage loans receivable. The fair value option provides an election which allows a company to irrevocably elect fair value for certain financial asset and liabilities on an instrument-by-instrument basis. The Company elected the fair value option for these loans to better align reported results with the underlying economic changes in value of the loans on the Company’s Consolidated Balance Sheets. Furthermore, as a result of the election to apply the fair value option, these loans are not subject to an allowance for credit losses under the CECL impairment model. Rithm Capital reports the change in the fair value within Change in Fair Value of Investments in the Consolidated Statements of Income. Fair value approximates carrying value due to the short duration of the mortgage loans receivable. Mortgage loans receivable are presented net of construction holdbacks and interest reserves on the Consolidated Balance Sheets. The construction holdback represents amounts withheld from the funding of construction loans and released as the project progresses. The interest reserve represents amounts withheld from the funding of certain mortgage loans in order to satisfy monthly interest payments for all or part of the term of the related loan. Accrued interest is paid out of the interest reserve and recognized as interest income on a monthly basis. Mortgage loans receivable can be placed in contractual default status for (i) an interest payment is more than 30 days past due or sooner, if collection is considered doubtful, (ii) a loan matures and the borrower fails to make payment of all amounts owed or extend the loan, or (iii) the collateral becomes impaired in such a way that the ultimate collection of the loan receivable is doubtful. The accrual of interest income is suspended when a loan is in contractual default unless the interest is paid in cash or collectability of all amounts due is reasonably assured. In addition, in certain instances, where the interest reserve on a current loan has been fully depleted and the interest payment is not expected to be collected from the borrower, the Company may place a current loan on non-accrual status and recognize interest income on a cash basis. Interest previously accrued may be reversed at that time, and such reversal is offset against interest income. The accrual of interest income resumes only when the suspended loan becomes contractually current or a credit analysis supports the ability to collect in accordance with the terms of the loan. In addition to interest income, the Company generates loan fee income, including loan origination fees, loan renewal fees and inspection fees. The majority of fee income is composed of loan origination fees, or “points,” with interest rates based on the total commitment at origination. In addition to origination fees, the Company earns loan extension fees when maturing loans are renewed or extended and amendment fees when loan terms are modified, such as increases in interest reserves and construction holdbacks. Loans are generally only renewed or extended if the loan is not in default and satisfies the Company’s underwriting criteria. Loan fee income is recognized as interest income at origination or amendment given the Company’s election of the fair value option. Both interest and loan fee income earned on mortgage loans is reported in Interest Income in the Consolidated Statements of Income. |
Residential Mortgage Loan Repurchases | Residential Mortgage Loan Repurchases — The Mortgage Company, as approved issuer of Ginnie Mae MBS, originate and securitize government-insured residential mortgage loans. As issuer of Ginnie Mae-guaranteed securitizations, the Mortgage Company 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, the Mortgage Company 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 Mortgage Company intends to repurchase the loans. Upon recognizing loans eligible for repurchase, the Company does not change the accounting for MSRs related to previously sold loans. Upon reacquisition of a loan the MSR is written off. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash |
Servicer Advances Receivable | Servicer Advances Receivable — Represents servicer advances due to Rithm Capital’s servicer subsidiary, NRM (Note 6). The servicer advances receivable purchased in conjunction with MSRs are recorded with purchase discounts. Subsequent advances are recorded at cost, subject to impairment. Any related purchase discounts are accreted into Servicing Revenue, Net on a straight-line basis over the estimated weighted average life of the advances. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets — Rithm Capital qualitatively assesses its goodwill assigned to each of its reporting units during the fourth quarter of each year. This qualitative assessment evaluates various events and circumstances, such as macro-economic conditions, industry and market conditions, cost factors, relevant events and financial trends, that may impact a reporting unit's fair value. Using this qualitative assessment, the Company determines whether it is more-likely-than-not the reporting unit's fair value exceeds its carrying value. If it is determined that it is not more-likely-than-not the reporting unit's fair value exceeds the carrying value, or upon consideration of other factors, including recent acquisition, restructuring or divestiture activity, the Company performs a quantitative, “step one,” goodwill impairment analysis. In addition, the Company may test goodwill in between annual test dates if an event occurs or circumstances change that could more-likely-than-not reduce the fair value of a reporting unit below its carrying value. Rithm Capital did not recognize any impairment for the year ended December 31, 2022. |
Leases | Leases — Rithm Capital determines if an arrangement is a lease at inception. 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 recognized at commencement date based on the net present value of lease payments over the lease term. The majority of Rithm Capital’s lease agreements do not provide an implicit rate. As a result, Rithm Capital used an incremental borrowing rate based on the information available as of the lease commencement dates in determining the present value of lease payments. The operating lease ROU asset reflects any upfront lease payments made as well as lease incentives received. The lease terms may include options to extend or terminate the lease and these are factored into the determination of the ROU asset and lease liability at lease inception when and if it is reasonably certain that Rithm Capital will exercise that option. Lease expense for fixed lease payments is recognized on a straight-line basis over the lease term. Rithm Capital has certain lease agreements with nonlease components such as maintenance and executory costs, which are accounted for separately and not included in ROU assets. ROU assets are tested for impairment whenever changes in facts or circumstances indicate that the carrying amount of an asset may not be recoverable. Modification of a lease term would result in re-measurement of the lease liability and a corresponding adjustment to the ROU asset. |
Secured Financing Agreements and Secured Notes and Bonds Payable | Secured Financing Agreements and Secured Notes and Bonds Payable — The Company finances the acquisition of certain assets within its investment portfolio using secured financing agreements, including repurchase agreements and warehouse credit facilities. Repurchase agreements and warehouse credit facilities are treated as collateralized financing transactions and carried at their contractual amounts, including accrued interest, as specified in the respective agreements. The carrying amount of the Company’s secured financing agreements and warehouse credit facilities approximates fair value. The Company pledges certain securities, loans or other assets as collateral under secured financing agreements and warehouse credit facilities with financial institutions, the terms and conditions of which are negotiated on a transaction-by-transaction basis. The amounts available to be borrowed under repurchase agreements and warehouse credit facilities are dependent upon the fair value of the securities, or loans pledged as collateral, which can fluctuate with changes in interest rates, type of security and liquidity conditions within the banking, mortgage finance and real estate industries. |
Derivative Financial Instruments | Derivative Financial Instruments — The Company’s enters into derivative contracts, including interest rate swaps, swaptions, futures, interest rate caps, and TBA securities to manage its interest rate risk and, from time to time, enhance investment returns. The Company’s derivatives are recorded as either assets or liabilities in the Consolidated Balance Sheets and measured at fair value. The Company’s derivative financial instrument contracts are not designated as hedges for U.S. GAAP; accordingly, all changes in fair value are recognized in earnings. The Company estimates the fair value of its derivative instruments as described in Note 20 of these consolidated financial statements. The Company may also utilize forward contracts for the purchase or sale of TBA Agency MBS. The Company accounts for TBA Agency MBS as derivative instruments if it is reasonably possible that it will not take or make physical delivery of the Agency MBS upon settlement of the contract. The Company accounts for TBA dollar roll transactions as a series of derivative transactions. The Company may also purchase and sell TBA Agency MBS as a means of investing in and financing Agency MBS (thereby increasing “at risk” leverage) or as a means of disposing of or reducing its exposure to Agency MBS (thereby reducing “at risk” leverage). The Company agrees to purchase or sell, for future delivery, Agency MBS with certain principal and interest terms and certain types of collateral, but the particular Agency Securities to be delivered are not identified until shortly before the TBA settlement date. The Company may also choose, prior to settlement, to move the settlement of these securities out to a later date by entering into an offsetting short or long position (referred to as a “pair off”), net settling the paired off positions for cash, and simultaneously purchasing or selling a similar TBA Agency MBS for a later settlement date. This transaction is commonly referred to as a “dollar roll.” When it is reasonably possible that the Company will pair off a TBA Agency MBS, it accounts for that contract as a derivative. |
Stock-Based Compensation | Stock-Based Compensation — The Company grants stock-based compensation awards to certain employees and all directors in the form of restricted shares of common stock. The Company accounts for equity-based awards under ASC 718, Compensation — Stock Compensation , which requires the Company to expense the cost of services received in exchange for equity-based awards based on the grant-date fair value of the awards. This expense is recognized ratably over the requisite service period following the date of grant. The fair value of the Company’s restricted stock award (“RSA”) is typically equivalent to the closing stock price on the grant date. The unrecognized compensation cost relating to such awards is recognized as an expense over the awards’ remaining vesting periods. Equity compensation expense is included in Compensation and Benefits expense on the Company’s Consolidated Statements of Income. The Company has elected to account for forfeitures when they occur. |
Residential Mortgage Origination Reserves | Residential Mortgage Origination Reserves — The Mortgage Company originates conventional, government-insured and nonconforming residential mortgage loans for sale and securitization. In connection with the transfer of loans to the GSEs or mortgage investors, the Mortgage Company provides 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 to repurchase the loan. Rithm Capital records a reserve for sales recourse at the time of sale to cover all potential recourse obligations based on the outstanding balance of residential mortgage loans subject to |
Offering Costs | Offering Costs — The Company has incurred offering costs in connection with common stock offerings, registration statements, preferred stock offerings and exchanges. Where applicable, the offering costs were paid out of the proceeds of the respective offerings. Offering costs in connection with common stock offerings and costs in connection with registration statements have been accounted for as a reduction of additional paid-in capital. Offering costs in connection with preferred stock offerings have been accounted for as a reduction of their respective gross proceeds. Exchange costs in connection with the Company's preferred stock exchanges have been accounted for as a reduction to the Company's retained earnings. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share — In accordance with the provisions of ASC 260, Earnings Per Share |
Comprehensive Income | Comprehensive Income — Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances, excluding those resulting from investments by and distributions to owners. For Rithm Capital’s purposes, comprehensive income represents net income, as presented in the Consolidated Statements of Income, adjusted for unrealized gains or losses on certain securities classified as available for sale. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements — In March 2020, the 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 is effective for all entities as of March 12, 2020 through December 31, 2022 and may 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. The Company is continuing to assess the impact of the LIBOR transition and does not expect the transition or the adoption of the standard to have a material impact on the Consolidated Financial Statements. The Company’s primary exposure to LIBOR includes certain financing arrangements, interest rate swaps, and the 7.50% Series A-, 7.125% Series B-, 6.375% Series C- Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock. The Company's financing arrangements either have provisions in place that provide for an alternative to LIBOR upon its phase-out or contain maturities of one year or less and therefore would mature prior to the phase out of LIBOR in June 2023. In addition, the Company has amended terms of certain financing arrangements, where necessary, to transition or direct the transition to an alternative benchmark. Interest rate swaps will experience an orderly market transition prior to the cessation of LIBOR, although the Company has begun transitioning its interest rate swap portfolio away from LIBOR benchmarks. The Company does not currently intend to amend the 7.50% Series A-, 7.125% Series B-, 6.375% Series C- Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock to change the existing USD-LIBOR cessation fallback language. In August 2020, the FASB issued ASU 2020-06, Debt–Debt with Conversion and Other Options (Topic 470) and Derivatives and Hedging–Contracts in Entity’s Own Equity (Topic 815) . The standard simplifies the accounting for convertible instruments by reducing the number of accounting models. A convertible debt instrument will generally be reported as a single liability at its amortized cost with no separate accounting for embedded conversion features. The standard also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. ASU 2020-06 was effective for Rithm Capital beginning on January 1, 2022. The adoption of the new standard did not have a material impact on the Company’s Consolidated Financial Statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The standard requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 2014-09, Revenue from Contracts with Customers (Topic 606) . The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The new standard is effective on a prospective basis for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted the new standard effective January 1, 2022. The adoption of the new standard did not have an impact to its operating results, financial position, or cash flows. 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 does not expect the adoption of the new standard to 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, 2023, with early adoption permitted. The Company does not expect the adoption of the new standard to have a material effect on its Consolidated Financial Statements. |
BUSINESS ACQUISITIONS (Tables)
BUSINESS ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Purchase Price Allocation | The following table summarizes the allocation of the total consideration paid to acquire the assets and assume the liabilities of companies acquired: 2021 ($ in millions) Caliber Genesis Total Total Consideration $ 1,318.5 $ 1,634.6 $ 2,953.1 Assets Mortgage servicing rights, at fair value $ 1,507.5 $ — $ 1,507.5 Residential mortgage loans, held-for-sale, at fair value 7,685.7 — 7,685.7 Mortgage loans receivable, at fair value — 1,505.6 1,505.6 Residential mortgage loans subject to repurchase 666.8 — 666.8 Cash and cash equivalents 472.7 16.4 489.1 Restricted cash 30.6 — 30.6 Servicer advance receivable 108.3 — 108.3 Intangible assets (A)(B) 41.0 56.8 97.8 Other assets 609.7 14.5 624.2 Total Assets Acquired $ 11,122.3 $ 1,593.3 $ 12,715.6 Liabilities Secured financing agreements $ 7,090.6 $ — $ 7,090.6 Secured notes and bonds payable 1,121.8 — 1,121.8 Residential mortgage loans repurchase liability 666.8 — 666.8 Accrued expenses and other liabilities 918.6 14.4 933.0 Total Liabilities Assumed $ 9,797.8 $ 14.4 $ 9,812.2 Net Assets $ 1,324.5 $ 1,578.9 $ 2,903.4 Goodwill (bargain purchase gain) $ (6.0) $ 55.7 $ 49.7 (A) Includes intangible assets acquired as part of the Caliber acquisition in the form of purchased technology and trade name/trademarks. These intangibles are being amortized over a finite life of up to seven years. (B) Includes intangible assets acquired as part of the Genesis acquisition in the form of customer relationships, trade name and a license. Customer relationships and the trade name are being amortized over a finite life of nine years and five years, respectively. Rithm Capital has determined that the license has an indefinite useful life. ($ in millions) Acquisition Date Amounts Recognized as of September 30, 2021 Subsequent Adjustments to Fair Value Acquisition Date Amounts Recognized as of December 31, 2021 Total Consideration $ 1,318.5 $ — $ 1,318.5 Assets Mortgage servicing rights, at fair value $ 1,507.5 $ — $ 1,507.5 Residential mortgage loans, held-for-sale, at fair value 7,685.7 — 7,685.7 Residential mortgage loans subject to repurchase 666.8 — 666.8 Cash and cash equivalents 472.7 — 472.7 Restricted cash 30.6 — 30.6 Servicer advance receivable 108.3 — 108.3 Intangible assets 41.0 — 41.0 Other assets (A) 605.4 4.3 609.7 Total Assets Acquired $ 11,118.0 $ 4.3 $ 11,122.3 Liabilities Secured financing agreements $ 7,090.6 $ — $ 7,090.6 Secured notes and bonds payable 1,121.8 — 1,121.8 Residential mortgage loans repurchase liability 666.8 — 666.8 Accrued expenses and other liabilities (A) 917.0 1.6 918.6 Total Liabilities Assumed $ 9,796.2 $ 1.6 $ 9,797.8 Net Assets $ 1,321.8 $ 2.7 $ 1,324.5 Goodwill (bargain purchase gain) $ (3.3) $ (2.7) $ (6.0) (A) The adjustments to Other assets and Accrued expenses and other liabilities primarily reflect the impact on deferred tax assets and related liabilities attributable to certain return to provision adjustments. |
Schedule of Acquired Intangible Assets | The following table presents the details of identifiable intangible assets acquired: Estimated Useful Life Amount Purchased technology 7 $ 38,545 Trademarks/trade names 1 2,483 Total identifiable intangible assets $ 41,028 Estimated Useful Life Amount Customer relationships 9 $ 44,700 Trade name 5 5,900 License Indefinite 5,500 Total identifiable intangible assets $ 56,100 The following table summarizes the acquired identifiable intangible assets: As of December 31, Estimated Useful Lives (Years) 2022 2021 Gross Intangible Assets Customer relationships 3 to 9 $ 57,949 $ 57,949 Purchased technology 3 to 7 120,787 93,241 Trademarks / Trade names 1 to 5 10,259 10,259 188,995 161,449 Accumulated Amortization Customer relationships 12,960 6,574 Purchased technology 30,959 10,578 Trademarks / Trade names 3,663 1,164 47,582 18,316 Intangible Assets, Net Customer relationships 44,989 51,375 Purchased technology (A) 89,828 82,663 Trademarks / Trade names (B) 6,596 9,095 $ 141,413 $ 143,133 (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 Unaudited Supplemental Pro Forma Financial Information | The following table presents unaudited pro forma combined revenues and income before income taxes for the year ended December 31, 2021 and 2020 prepared as if the Caliber acquisition had been consummated on January 1, 2020: Year Ended December 31, Pro Forma (in millions) 2021 2020 Revenues $ 5,422.7 $ 4,453.4 Income (loss) before income taxes 1,258.6 (529.9) Year Ended December 31, Pro Forma (in millions) 2021 2020 Revenues $ 3,643.4 $ 1,693.0 Income (loss) before income taxes 981.8 (1,316.1) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 (A) Real Estate Properties and Residential Mortgage Loans Consumer Mortgage Loans Receivable Corporate Total Year Ended December 31, 2022 Servicing fee revenue, net and interest income from MSRs and MSR financing $ — $ 1,431,947 $ 400,017 $ 1,831,964 $ — $ — $ — $ — $ — $ 1,831,964 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(631,120)) — 731,222 1,528 732,750 — — — — — 732,750 Servicing revenue, net — 2,163,169 401,545 2,564,714 — — — — — 2,564,714 Interest income 173,947 152,687 105,279 431,913 298,544 89,476 68,788 166,479 20,781 1,075,981 Gain on originated residential mortgage loans, held-for-sale, net 1,039,939 87,343 — 1,129,787 — (43,555) — — — 1,086,232 Total revenues 1,213,886 2,403,199 506,824 4,126,414 298,544 45,921 68,788 166,479 20,781 4,726,927 Interest expense 123,350 201,706 107,849 432,905 166,937 78,706 8,066 64,188 40,199 791,001 G&A and other 1,219,271 503,434 195,415 1,918,120 3,720 60,682 8,277 64,277 497,972 2,553,048 Total operating expenses 1,342,621 705,140 303,264 2,351,025 170,657 139,388 16,343 128,465 538,171 3,344,049 Change in fair value of investments — (1,812) (11,386) (13,198) 1,055,346 37,102 (36,739) 65,779 — 1,108,290 Gain (loss) on settlement of investments, net — (1,378) (5,883) (7,261) (1,382,605) 67,465 — (37,345) 67 (1,359,679) Other income (loss), net 6,256 767 42,635 49,658 (9,174) 76,895 26,548 12,243 (24,858) 131,312 Total other income (loss) 6,256 (2,423) 25,366 29,199 (336,433) 181,462 (10,191) 40,677 (24,791) (120,077) Income (loss) before income taxes (122,479) 1,695,636 228,926 1,804,588 (208,546) 87,995 42,254 78,691 (542,181) 1,262,801 Income tax (benefit) expense (30,397) 357,715 40,678 367,996 — (5,333) 33 (7,792) (75,388) 279,516 Net income (loss) $ (92,082) $ 1,337,921 $ 188,248 $ 1,436,592 $ (208,546) $ 93,328 $ 42,221 $ 86,483 $ (466,793) $ 983,285 Noncontrolling interests in income (loss) of consolidated subsidiaries 2,716 — 2,850 5,566 — — 23,200 — — 28,766 Dividends on preferred stock — — — — — — — — 89,726 89,726 Net income (loss) attributable to common stockholders $ (94,798) $ 1,337,921 $ 185,398 $ 1,431,026 $ (208,546) $ 93,328 $ 19,021 $ 86,483 $ (556,519) $ 864,793 (A) Includes elimination of intercompany transactions of $2.5 million primarily related to loan sales. Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing Real Estate Properties and Residential Mortgage Loans Consumer Mortgage Loans Receivable Corporate Total December 31, 2022 Investments $ 2,066,798 $ 7,304,637 $ 2,091,507 $ 11,462,942 $ 8,289,277 $ 2,248,591 $ 363,756 $ 2,064,028 $ — $ 24,428,594 Cash and cash equivalents 163,452 440,739 276,690 880,881 381,456 361 605 52,441 20,764 1,336,508 Restricted cash 24,316 136,933 69,347 230,596 4,604 4,627 15,930 25,369 — 281,126 Other assets 224,705 2,204,127 3,000,911 5,429,743 248,283 324,119 29,375 170,129 146,260 6,347,909 Goodwill 11,836 12,540 5,092 29,468 — — — 55,731 — 85,199 Total assets $ 2,491,107 $ 10,098,976 $ 5,443,547 $ 18,033,630 $ 8,923,620 $ 2,577,698 $ 409,666 $ 2,367,698 $ 167,024 $ 32,479,336 Debt $ 1,909,030 $ 4,751,454 $ 3,272,945 $ 9,933,429 $ 7,430,463 $ 1,937,395 $ 299,498 $ 1,733,579 $ 567,371 $ 21,901,735 Other liabilities 214,148 2,081,536 35,052 2,330,736 776,785 272,484 1,176 25,818 160,534 3,567,533 Total liabilities 2,123,178 6,832,990 3,307,997 12,264,165 8,207,248 2,209,879 300,674 1,759,397 727,905 25,469,268 Total equity 367,929 3,265,986 2,135,550 5,769,465 716,372 367,819 108,992 608,301 (560,881) 7,010,068 Noncontrolling interests in equity of consolidated subsidiaries 12,437 — 12,193 24,630 — — 42,437 — — 67,067 Total Rithm Capital stockholders’ equity $ 355,492 $ 3,265,986 $ 2,123,357 $ 5,744,835 $ 716,372 $ 367,819 $ 66,555 $ 608,301 $ (560,881) $ 6,943,001 Investments in equity method investees $ — $ — $ 72,437 $ 72,437 $ — $ — $ — $ — $ — $ 72,437 Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing (A) Real Estate Properties and Residential Mortgage Loans Consumer Mortgage Loans Receivable Corporate Total Year Ended December 31, 2021 Servicing fee revenue, net and interest income from MSRs and MSR financing $ (4,089) $ 1,025,888 $ 537,755 $ 1,559,554 $ — $ — $ — $ — $ — $ 1,559,554 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(1,192,646)) — (313,655) (261,698) (575,353) — — — — — (575,353) Servicing revenue, net (4,089) 712,233 276,057 984,201 — — — — — 984,201 Interest income 188,053 20,629 49,162 257,844 293,989 139,658 93,847 4,219 21,339 810,896 Gain on originated residential mortgage loans, held-for-sale, net 1,704,363 101,764 (138,505) 1,781,204 9,878 35,827 — — — 1,826,909 Total revenues 1,888,327 834,626 186,714 3,023,249 303,867 175,485 93,847 4,219 21,339 3,622,006 Interest expense 121,392 97,696 104,838 323,926 47,037 76,273 10,999 1,000 38,073 497,308 G&A and other 1,223,668 395,007 273,748 1,892,423 4,620 90,377 10,856 1,802 119,686 2,119,764 Total operating expenses 1,345,060 492,703 378,586 2,216,349 51,657 166,650 21,855 2,802 157,759 2,617,072 Change in fair value of investments — — (22,336) (22,336) (101,566) 155,758 (20,133) — — 11,723 Gain (loss) on settlement of investments, net — (4,766) (35,116) (39,882) (254,672) 60,164 — — (171) (234,561) Other income (loss), net 2,346 742 79,355 82,443 3,515 94,765 1,935 — (946) 181,712 Total other income (loss) 2,346 (4,024) 21,903 20,225 (352,723) 310,687 (18,198) — (1,117) (41,126) Income (loss) before income taxes 545,613 337,899 (169,969) 827,125 (100,513) 319,522 53,794 1,417 (137,537) 963,808 Income tax (benefit) expense 115,289 17,828 (26,553) 106,564 — 51,579 83 — — 158,226 Net income (loss) $ 430,324 $ 320,071 $ (143,416) $ 720,561 $ (100,513) $ 267,943 $ 53,711 $ 1,417 $ (137,537) $ 805,582 Noncontrolling interests in income (loss) of consolidated subsidiaries 11,298 — (1,800) 9,498 — — 23,858 — — 33,356 Dividends on preferred stock — — — — — — — — 66,744 66,744 Net income (loss) attributable to common stockholders $ 419,026 $ 320,071 $ (141,616) $ 711,063 $ (100,513) $ 267,943 $ 29,853 $ 1,417 $ (204,281) $ 705,482 (A) Includes elimination of intercompany transactions of $113.6 million primarily related to loan sales. Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing Real Estate Properties and Residential Mortgage Loans Consumer Mortgage Loans Receivable Corporate Total December 31, 2021 Investments $ 8,829,598 $ 5,439,613 $ 2,776,078 $ 17,045,289 $ 9,396,539 $ 3,099,294 $ 507,291 $ 1,515,762 $ — $ 31,564,175 Cash and cash equivalents 587,685 250,294 288,900 1,126,879 197,559 22 1,437 5,653 1,025 1,332,575 Restricted cash 32,803 95,785 27,182 155,770 15,342 2,482 21,961 — 312 195,867 Other assets 969,338 2,728,253 1,926,482 5,624,073 389,309 125,647 39,662 106,615 279,068 6,564,374 Goodwill 11,836 12,540 5,092 29,468 — — — 55,731 — 85,199 Total assets $ 10,431,260 $ 8,526,485 $ 5,023,734 $ 23,981,479 $ 9,998,749 $ 3,227,445 $ 570,351 $ 1,683,761 $ 280,405 $ 39,742,190 Debt $ 8,251,702 $ 4,131,297 $ 3,561,342 $ 15,944,341 $ 9,040,309 $ 2,440,693 $ 460,314 $ 1,252,660 $ 642,670 $ 29,780,987 Other liabilities 425,582 2,323,315 182,460 2,931,357 6,991 179,260 583 8,541 165,091 3,291,823 Total liabilities 8,677,284 6,454,612 3,743,802 18,875,698 9,047,300 2,619,953 460,897 1,261,201 807,761 33,072,810 Total equity 1,753,976 2,071,873 1,279,932 5,105,781 951,449 607,492 109,454 422,560 (527,356) 6,669,380 Noncontrolling interests in equity of consolidated subsidiaries 15,683 — 10,251 25,934 — — 39,414 — — 65,348 Total Rithm Capital stockholders’ equity $ 1,738,293 $ 2,071,873 $ 1,269,681 $ 5,079,847 $ 951,449 $ 607,492 $ 70,040 $ 422,560 $ (527,356) $ 6,604,032 Investments in equity method investees $ — $ — $ 105,592 $ 105,592 $ — $ — $ — $ — $ — $ 105,592 Origination and Servicing Residential Securities, Properties and Loans Origination Servicing MSR Related Investments Total Origination and Servicing (A) Real Estate Properties and Residential Mortgage Loans Consumer Mortgage Loans Receivable Corporate Total Year Ended December 31, 2020 Servicing fee revenue, net and interest income from MSRs and MSR financing $ (11,519) $ 891,191 $ 762,600 $ 1,642,272 $ — $ — $ — $ — $ — $ 1,642,272 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(1,583,628)) — (1,094,339) (1,074,570) (2,168,909) — — — — — (2,168,909) Servicing revenue, net (11,519) (203,148) (311,970) (526,637) — — — — — (526,637) Interest income 63,160 16,897 58,517 138,574 355,916 175,963 124,512 — — 794,965 Gain on originated residential mortgage loans, held-for-sale, net 1,289,584 47,277 23,860 1,400,552 (13,398) 11,938 — — — 1,399,092 Total revenues 1,341,225 (138,974) (229,593) 1,012,489 342,518 187,901 124,512 — — 1,667,420 Interest expense 45,676 76,884 157,230 279,790 157,371 87,958 22,587 — 36,763 584,469 G&A and other 494,398 368,208 155,882 1,018,488 7,639 62,900 10,301 — 109,893 1,209,221 Total operating expenses 540,074 445,092 313,112 1,298,278 165,010 150,858 32,888 — 146,656 1,793,690 Change in fair value of investments — — (18,958) (18,958) (25,012) (107,604) 2,816 — — (148,758) Gain (loss) on settlement of investments, net — (5,486) (11,227) (16,713) (828,525) (19,655) (4,183) — (61,055) (930,131) Other income (loss), net 433 (1,738) 39,690 38,385 (11,071) (113,428) (8,386) — (41,109) (135,609) Total other income (loss) 433 (7,224) 9,505 2,714 (864,608) (240,687) (9,753) — (102,164) (1,214,498) Income (loss) before income taxes 801,584 (591,290) (533,200) (283,075) (687,100) (203,644) 81,871 — (248,820) (1,340,768) Income tax (benefit) expense 211,359 (58,288) (71,719) 81,352 — (65,215) 779 — — 16,916 Net income (loss) $ 590,225 $ (533,002) $ (461,481) $ (364,427) $ (687,100) $ (138,429) $ 81,092 $ — $ (248,820) $ (1,357,684) Noncontrolling interests in income (loss) of consolidated subsidiaries 15,625 — 891 16,516 — — 36,158 — — 52,674 Dividends on preferred stock — — — — — — — — 54,295 54,295 Net income (loss) attributable to common stockholders $ 574,600 $ (533,002) $ (462,372) $ (380,943) $ (687,100) $ (138,429) $ 44,934 $ — $ (303,115) $ (1,464,653) (A) Includes elimination of intercompany transactions of $39.8 million primarily related to loan sales. Servicing Segment Revenues The table below summarizes the components of servicing segment revenues: Year Ended December 31, 2022 2021 2020 Base servicing MSR assets $ 1,187,130 $ 731,924 $ 611,669 Residential whole loans 11,354 16,448 16,081 Third party 92,589 103,617 139,480 1,291,073 851,989 767,230 Other fees Ancillary and other fees (A) 140,874 173,899 123,961 Change in fair value due to: Realization of cash flows (414,017) (783,349) (792,680) Change in valuation inputs and assumptions and other 1,145,239 469,694 (301,659) Total servicing fees $ 2,163,169 $ 712,233 $ (203,148) Servicing data unpaid principal balance (“UPB”) (period end) (in millions) UPB – MSR assets $ 401,897 $ 389,852 $ 220,880 UPB – Residential whole loans 8,630 14,097 9,993 UPB – Third party 93,036 78,814 66,892 |
EXCESS MORTGAGE SERVICING RIG_2
EXCESS MORTGAGE SERVICING RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Schedule of Activity Related to the Carrying Value of Investments in Excess MSRs | The table below summarizes the components of Excess MSRs: Year Ended December 31, 2022 2021 Direct investments in Excess MSRs $ 249,366 $ 259,198 Excess MSR Joint Ventures 72,437 85,749 Excess mortgage servicing rights assets, at fair value $ 321,803 $ 344,947 The following table presents activity related to the carrying value of direct investments in Excess MSRs: Servicer Total (A) Balance as of December 31, 2020 $ 310,938 Interest income 20,296 Other income 78 Proceeds from repayments (56,052) Proceeds from sales (984) Change in fair value (15,078) Balance as of December 31, 2021 259,198 Interest income 38,035 Other income 42 Proceeds from repayments (43,950) Proceeds from sales (997) Change in fair value (2,962) Balance as of December 31, 2022 $ 249,366 (A) Underlying loans serviced by Mr. Cooper and Specialized Loan Servicing LLC (“SLS”). The following table summarizes activity related to MSRs and MSR Financing Receivables: Total Balance as of December 31, 2020 $ 4,585,841 Caliber acquisition (Note 3) 1,507,524 Purchases, net (A) 10,949 Originations (B) 1,331,626 Proceeds from sales (63,451) Change in fair value due to: Realization of cash flows (C) (1,196,527) Change in valuation inputs and assumptions 680,431 (Gain) loss realized 2,410 Balance as of December 31, 2021 $ 6,858,803 Purchases, net (A) (967) Originations (B) 1,222,742 Proceeds from sales (14,282) Change in fair value due to: Realization of cash flows (C) (631,120) Change in valuation inputs and assumptions 1,449,134 (Gain) loss realized 5,093 Balance as of December 31, 2022 $ 8,889,403 (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) Based on the paydown of the underlying residential mortgage loans. The following is a summary of MSRs and MSR Financing Receivables as of December 31, 2022 and 2021: UPB of Underlying Mortgages Weighted Average Life (Years) (A) Carrying Value (B) 2022 Agency $ 364,879,106 7.2 $ 6,022,266 Non-Agency 53,881,903 4.9 794,459 Ginnie Mae (c) 121,136,315 6.7 2,072,678 Total $ 539,897,324 6.9 $ 8,889,403 2021 Agency $ 374,815,579 6.1 $ 4,443,713 Non-Agency 63,851,154 8.3 943,210 Ginnie Mae (c) 109,946,356 5.7 1,471,880 Total/Weighted Average $ 548,613,089 6.3 $ 6,858,803 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Represents fair value. As of December 31, 2022 and 2021, weighted average discount rates of 8.3% (range of 7.6% – 9.8%) and 7.4% (range of 6.9% – 12.5%), respectively, were used to value Rithm Capital’s MSRs and MSR Financing Receivables, respectively. |
Summary of Direct Investments in Excess MSRs | The following summarizes direct investments in Excess MSRs: December 31, 2022 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis Carrying Value (B) Rithm Capital (C)(D) Fortress-managed funds Mr. Cooper $ 48,154,644 32.5% – 100% (56.5%) —% – 50.0% —% – 35.0% 6.3 $ 207,470 $ 249,366 December 31, 2021 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis Carrying Value (B) Rithm Capital (C)(D) Fortress-managed funds Mr. Cooper $ 57,422,177 32.5% – 100.0% (56.3%) —% – 50.0% —% – 35.0% 6.3 $ 214,239 $ 259,198 (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 December 31, 2022 and 2021 (Note 7) on $17.0 billion and $20.3 billion UPB, respectively, underlying these Excess MSRs. Changes in fair value of investments consists of the following: Year Ended December 31, 2022 2021 2020 Original and Recaptured Pools $ (2,962) $ (15,078) $ (16,232) |
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: December 31, 2022 2021 Excess MSRs $ 135,356 $ 152,383 Other assets 10,204 19,802 Other liabilities (687) (687) Equity $ 144,873 $ 171,498 Rithm Capital’s investment $ 72,437 $ 85,749 Rithm Capital’s percentage ownership 50.0 % 50.0 % Year Ended December 31, 2022 2021 2020 Interest income $ 15,157 $ 7,574 $ 22,507 Other income (loss) (12,073) (3,906) (29,461) Expenses (32) (32) (24) Net income (loss) $ 3,052 $ 3,636 $ (6,978) The following table summarizes the activity of investments in equity method investees: December 31, 2022 2021 Balance at beginning of period $ 85,749 $ 99,917 Contributions (distributions) to equity method investees — — Distributions of capital from equity method investees (14,838) (15,986) Change in fair value of investments in equity method investees 1,526 1,818 Balance at end of period $ 72,437 $ 85,749 |
Summary of Excess MSR Investments made through Equity Method Investees | The following table summarizes Excess MSR investments made through equity method investees: December 31, 2022 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 $ 19,299,726 66.7% 50.0% $ 106,176 $ 135,356 5.1 December 31, 2021 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 $ 23,039,453 66.7% 50.0% $ 112,840 $ 152,383 5.7 (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) | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Schedule of Activity Related to the Carrying Value of Investments in Excess MSRs | The table below summarizes the components of Excess MSRs: Year Ended December 31, 2022 2021 Direct investments in Excess MSRs $ 249,366 $ 259,198 Excess MSR Joint Ventures 72,437 85,749 Excess mortgage servicing rights assets, at fair value $ 321,803 $ 344,947 The following table presents activity related to the carrying value of direct investments in Excess MSRs: Servicer Total (A) Balance as of December 31, 2020 $ 310,938 Interest income 20,296 Other income 78 Proceeds from repayments (56,052) Proceeds from sales (984) Change in fair value (15,078) Balance as of December 31, 2021 259,198 Interest income 38,035 Other income 42 Proceeds from repayments (43,950) Proceeds from sales (997) Change in fair value (2,962) Balance as of December 31, 2022 $ 249,366 (A) Underlying loans serviced by Mr. Cooper and Specialized Loan Servicing LLC (“SLS”). The following table summarizes activity related to MSRs and MSR Financing Receivables: Total Balance as of December 31, 2020 $ 4,585,841 Caliber acquisition (Note 3) 1,507,524 Purchases, net (A) 10,949 Originations (B) 1,331,626 Proceeds from sales (63,451) Change in fair value due to: Realization of cash flows (C) (1,196,527) Change in valuation inputs and assumptions 680,431 (Gain) loss realized 2,410 Balance as of December 31, 2021 $ 6,858,803 Purchases, net (A) (967) Originations (B) 1,222,742 Proceeds from sales (14,282) Change in fair value due to: Realization of cash flows (C) (631,120) Change in valuation inputs and assumptions 1,449,134 (Gain) loss realized 5,093 Balance as of December 31, 2022 $ 8,889,403 (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) Based on the paydown of the underlying residential mortgage loans. The following is a summary of MSRs and MSR Financing Receivables as of December 31, 2022 and 2021: UPB of Underlying Mortgages Weighted Average Life (Years) (A) Carrying Value (B) 2022 Agency $ 364,879,106 7.2 $ 6,022,266 Non-Agency 53,881,903 4.9 794,459 Ginnie Mae (c) 121,136,315 6.7 2,072,678 Total $ 539,897,324 6.9 $ 8,889,403 2021 Agency $ 374,815,579 6.1 $ 4,443,713 Non-Agency 63,851,154 8.3 943,210 Ginnie Mae (c) 109,946,356 5.7 1,471,880 Total/Weighted Average $ 548,613,089 6.3 $ 6,858,803 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Represents fair value. As of December 31, 2022 and 2021, weighted average discount rates of 8.3% (range of 7.6% – 9.8%) and 7.4% (range of 6.9% – 12.5%), respectively, were used to value Rithm Capital’s MSRs and MSR Financing Receivables, respectively. |
Fees Earned in Exchange for Servicing Financial Assets | The following table summarizes components of Servicing Revenue, Net: Year Ended December 31, 2022 2021 2020 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 1,699,587 $ 1,446,509 $ 1,457,211 Ancillary and other fees 132,377 113,045 185,061 Servicing fee revenue and fees, net 1,831,964 1,559,554 1,642,272 Change in fair value due to: Realization of cash flows (A) (631,120) (1,192,646) (1,583,628) Change in valuation inputs and assumptions (B) 1,449,134 680,088 (585,928) Change in fair value of derivative instruments (11,316) (30,481) — (Gain) loss realized 5,093 2,410 647 Gain (loss) on settlement of derivative instruments (79,041) (34,724) — Servicing revenue, net $ 2,564,714 $ 984,201 $ (526,637) (A) Includes $3.9 million and $8.7 million of fair value adjustment due to realization of cash flows to excess spread financing for the year ended December 31, 2021 and 2020, respectively. (B) Includes $0.3 million and $5.5 million of fair value adjustment due to changes in valuation inputs and assumptions to excess spread financing for the year ended December 31, 2021 and 2020, respectively. |
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 December 31, 2022 December 31, 2021 California 17.4 % 18.1 % Florida 8.6 % 8.6 % Texas 6.2 % 6.2 % New York 6.0 % 6.0 % Washington 5.9 % 5.6 % New Jersey 4.4 % 4.5 % Virginia 3.6 % 3.4 % Maryland 3.4 % 3.4 % Illinois 3.4 % 3.4 % Georgia 2.9 % 3.0 % Other U.S. 38.2 % 37.8 % 100.0 % 100.0 % |
Schedule of Investment in Servicer Advances | The following types of advances are included in the Servicer Advances Receivable: December 31, 2022 2021 Principal and interest advances $ 664,495 $ 562,418 Escrow advances (taxes and insurance advances) 1,426,409 1,523,154 Foreclosure advances 754,073 793,098 Total (A)(B)(C) $ 2,844,977 $ 2,878,670 (A) Includes $526.5 million and $593.0 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B) Includes $261.8 million and $212.9 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 $19.5 million and $23.5 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. 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) December 31, 2022 Servicer Advance Investments $ 392,749 $ 398,820 5.7 % 5.6 % 8.4 December 31, 2021 Servicer Advance Investments $ 405,786 $ 421,807 5.2 % 5.5 % 6.9 (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 December 31, 2022 Servicer Advance Investments (D) $ 17,033,753 $ 341,628 2.0 % $ 319,276 90.2 % 88.3 % 6.5 % 5.9 % December 31, 2021 Servicer Advance Investments (D) $ 20,314,977 $ 369,440 1.8 % $ 356,580 91.4 % 90.7 % 1.3 % 1.2 % (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: December 31, 2022 2021 Principal and interest advances $ 66,892 $ 67,014 Escrow advances (taxes and insurance advances) 155,438 174,681 Foreclosure advances 119,298 127,745 Total $ 341,628 $ 369,440 |
Schedule of Servicer Advances Reserve | The following table summarizes the activity of the servicer advances reserve: Balance as of December 31, 2020 $ 22,849 Caliber acquisition (Note 3) 15,068 Provision 11,560 Write-offs (17,355) Balance as of December 31, 2021 $ 32,122 Provision 48,392 Write-offs (15,086) Balance as of December 31, 2022 $ 65,428 |
SERVICER ADVANCE INVESTMENTS (T
SERVICER ADVANCE INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Schedule of Investment in Servicer Advances | The following types of advances are included in the Servicer Advances Receivable: December 31, 2022 2021 Principal and interest advances $ 664,495 $ 562,418 Escrow advances (taxes and insurance advances) 1,426,409 1,523,154 Foreclosure advances 754,073 793,098 Total (A)(B)(C) $ 2,844,977 $ 2,878,670 (A) Includes $526.5 million and $593.0 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B) Includes $261.8 million and $212.9 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 $19.5 million and $23.5 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. 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) December 31, 2022 Servicer Advance Investments $ 392,749 $ 398,820 5.7 % 5.6 % 8.4 December 31, 2021 Servicer Advance Investments $ 405,786 $ 421,807 5.2 % 5.5 % 6.9 (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 December 31, 2022 Servicer Advance Investments (D) $ 17,033,753 $ 341,628 2.0 % $ 319,276 90.2 % 88.3 % 6.5 % 5.9 % December 31, 2021 Servicer Advance Investments (D) $ 20,314,977 $ 369,440 1.8 % $ 356,580 91.4 % 90.7 % 1.3 % 1.2 % (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: December 31, 2022 2021 Principal and interest advances $ 66,892 $ 67,014 Escrow advances (taxes and insurance advances) 155,438 174,681 Foreclosure advances 119,298 127,745 Total $ 341,628 $ 369,440 |
Schedule of Interest Income Related to Investments in Servicer Advances | The following table summarizes interest income related to Servicer Advance Investments: Year Ended December 31, 2022 2021 2020 Interest income, gross of amounts attributable to servicer compensation $ 15,821 $ 12,501 $ 34,262 Amounts attributable to basic servicer compensation (891) (1,798) (3,248) Amounts attributable to incentive servicer compensation 27,075 (9,025) (12,832) Interest income from servicer advance investments $ 42,005 $ 1,678 $ 18,182 December 31, 2022 2021 2020 Interest income: Loans held-for-investment, at fair value $ 45,287 $ 44,369 $ 53,264 Loans held-for-sale, at lower of cost or fair value 6,898 23,280 50,130 Loans held-for-sale, at fair value 211,238 260,062 135,729 Total interest income 263,423 327,711 239,123 Interest expense: Loans held-for-investment, at fair value 17,583 16,919 21,029 Loans held-for-sale, at lower of cost or fair value 3,402 21,333 22,541 Loans held-for-sale, at fair value and SFR properties 181,071 159,413 90,064 Total interest expense 202,056 197,665 133,634 Net interest income $ 61,367 $ 130,046 $ 105,489 |
REAL ESTATE AND OTHER SECURIT_2
REAL ESTATE AND OTHER SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Debt Securities, Available-for-sale | The following table summarizes Real Estate and Other Securities by designation: December 31, 2022 Gross Unrealized Weighted Average Outstanding Face Amount Gains Losses Carrying Value (A) Number of Securities Coupon (B) Yield Life (Years) (C) Principal Subordination (D) RMBS designated as available for sale (AFS): Agency (E) $ 80,261 $ — $ — $ 73,439 1 3.50 % 3.50 % 8.9 N/A Non-Agency (F)(G) 2,631,852 72,354 (33,684) 397,076 333 3.50 % 3.50 % 6.4 29.1 % RMBS measured at fair value through net income (FVO): Agency (E) 7,383,261 91,770 (43,826) 7,264,978 35 5.00 % 5.00 % 8.6 N/A Non-Agency (F)(G) 15,275,560 56,213 (91,369) 553,784 341 2.70 % 4.80 % 7.5 16.7 % Total/ Weighted Average $ 25,370,934 $ 220,337 $ (168,879) $ 8,289,277 710 4.80 % 4.90 % 8.4 December 31, 2021 Gross Unrealized Weighted Average Outstanding Face Amount Gains Losses Carrying Value (A) Number of Securities Coupon (B) Yield Life (Years) (C) Principal Subordination (D) RMBS designated as available for sale (AFS): Agency (E) $ 91,572 $ 7,008 $ — $ 98,367 1 3.50 % 3.50 % 4.4 N/A Non-Agency (F)(G) 2,956,066 84,494 (117) 522,416 334 3.29 % 3.18 % 3.4 26.6 % RMBS measured at fair value through net income (FVO): Agency (E) 8,307,771 204 (226,309) 8,346,230 40 2.13 % 2.13 % 7.0 N/A Non-Agency (F)(G) 12,958,891 32,814 (51,892) 429,526 271 2.15 % 3.91 % 3.2 20.3 % Total/ Weighted Average $ 24,314,300 $ 124,520 $ (278,318) $ 9,396,539 646 2.19 % 2.27 % 6.6 (A) Fair value is equal to carrying value for all securities. (B) Excludes residual bonds, and certain other Non-Agency bonds, with a carrying value of $16.6 million and $1.1 million, respectively, for which no coupon payment is expected. (C) Based on the timing of expected principal reduction on the assets. (D) Percentage of the amortized cost basis of securities that is subordinate to Rithm Capital’s investments, excluding fair value option securities. (E) The total outstanding face amount was $7.5 billion and $8.4 billion for fixed rate securities and $0.0 billion and $0.0 billion for floating rate securities as of December 31, 2022 and 2021, respectively. (F) The total outstanding face amount was $8.4 billion (including $7.5 billion of residual and fair value option notional amount) and $9.6 billion (including $8.7 billion of residual and fair value option notional amount) for fixed rate securities and $9.5 billion (including $9.3 billion of residual and fair value option notional amount) and $6.4 billion (including $6.2 billion of residual and fair value option notional amount) for floating rate securities as of December 31, 2022 and 2021, respectively. (G) Includes other asset backed securities (“ABS”) consisting primarily of (i) interest-only securities and servicing strips which Rithm Capital elected to carry at fair value (fair value option securities) and record changes to valuation through the income statement, (ii) bonds backed by consumer loans and (iii) corporate debt. The following table summarizes these securities: Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Gains Losses Carrying Value Number of Securities Coupon Yield Life (Years) December 31, 2022 Corporate debt $ 514 $ — $ — $ 465 2 8.20 % 9.50 % 2.2 Consumer loan bonds 518 522 — 590 3 N/A N/A 0.7 Fair value option securities Interest-only securities 9,652,902 29,681 (31,714) 160,160 141 0.90 % 5.40 % 3.2 Servicing strips 4,338,099 17,501 (4,105) 59,017 61 0.70 % 9.90 % 4.2 December 31, 2021 Corporate Debt $ 414 $ 9 $ — $ 423 1 8.25 % 8.25 % 3.3 Consumer loan bonds 2,960 878 — 2,974 3 N/A N/A 0.0 Fair value option securities Interest-only securities 7,368,874 8,099 (43,626) 152,489 127 1.19 % 1.54 % 2.0 Servicing strips 4,413,700 6,869 (7,758) 59,120 59 1.40 % 13.12 % 2.6 The following table summarizes purchases and sales of Real Estate and Other Securities: Year Ended December 31, 2022 2021 (in millions) Agency Non-Agency Agency Non-Agency Purchases Face $ 16,479.3 $ 5,018.1 $ 5,907.2 $ 2,999.3 Purchase price 16,314.6 256.5 6,098.8 174.3 Sales Face $ 16,516.0 $ 15.3 $ 7,830.8 $ 1,686.9 Amortized cost 16,759.7 13.6 8,135.6 193.2 Sale price 15,026.3 12.0 8,074.3 164.7 Gain (loss) on sale (1,733.4) (1.6) (61.3) (28.5) |
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 December 31, 2022. Amortized Cost Basis Weighted Average Securities in an Unrealized Loss Position Outstanding Face Amount Before Credit Impairment Credit Impairment (A) After Credit Impairment Gross Unrealized Losses Carrying Value Number of Securities Coupon Yield Life Less than 12 Months $ 408,191 $ 390,591 $ (10,816) $ 379,775 $ (33,435) $ 346,340 199 4.8 % 4.9 % 8.5 12 or More Months 3,107 3,157 — 3,157 (249) 2,908 2 1.5 % 4.0 % 3.6 Total/Weighted Average $ 411,298 $ 393,748 $ (10,816) $ 382,932 $ (33,684) $ 349,248 201 4.8 % 4.9 % 8.5 (A) Represents credit impairment on securities in an unrealized loss position as of December 31, 2022. 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: December 31, 2022 December 31, 2021 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 77,843 78,101 (10,816) (258) 6,581 6,581 (3,471) — Non-credit impaired securities 271,405 304,831 — (33,426) 3,927 4,044 — (117) Total debt securities in an unrealized loss position $ 349,248 $ 382,932 $ (10,816) $ (33,684) $ 10,508 $ 10,625 $ (3,471) $ (117) (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. |
Schedule 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, 2020 $ 8,672 $ — $ 8,672 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 (2,182) — (2,182) 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 (3,019) — (3,019) Write-offs charged against the allowance — — — Recoveries of amounts previously written off — — — Allowance for credit losses on available-for-sale debt securities at December 31, 2021 $ 3,471 $ — $ 3,471 Additions to the allowance for credit losses on securities for which credit losses were not previously recorded 128 6,676 6,804 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 — — — 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 541 — 541 Write-offs charged against the allowance — — — Recoveries of amounts previously written off — — — Allowance for credit losses on available-for-sale debt securities at December 31, 2022 $ 4,140 $ 6,676 $ 10,816 |
Schedule of the Outstanding Face Amount and Carrying Value for Securities Uncollectible | The following is the outstanding face amount and carrying value for securities, for which, as of the acquisition date, it was probable that Rithm Capital would be unable to collect all contractually required payments, excluding residual and fair value option securities: Outstanding Face Amount Carrying Value December 31, 2022 $ 443,680 $ 66,775 December 31, 2021 512,731 180,890 |
Summary of Changes in Accretable Yield for Securities | The following is a summary of the changes in accretable yield for these securities: Year Ended December 31, 2022 2021 Beginning balance $ 36,093 $ 189,562 Additions — 8,324 Accretion (2,155) (4,720) Reclassifications from (to) non-accretable difference 7,262 (8,015) Disposals — (149,058) Ending balance $ 41,200 $ 36,093 |
RESIDENTIAL MORTGAGE LOANS (Tab
RESIDENTIAL MORTGAGE LOANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO | The following table summarizes residential mortgage loans outstanding by loan type: December 31, 2022 2021 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 (B) $ 538,710 $ 452,519 9,612 8.5 % 4.3 $ 569,933 Acquired performing loans (C) 85,049 72,425 2,249 8.5 % 5.2 130,634 Acquired non-performing loans (D) 32,798 28,602 448 7.8 % 3.0 2,287 Total residential mortgage loans, held-for-sale, at lower of cost or market $ 117,847 $ 101,027 2,697 8.3 % 4.6 $ 132,921 Acquired performing loans (C)(E) 947,910 890,131 4,474 5.7 % 19.2 2,070,262 Acquired non-performing loans (D)(E) 369,220 340,342 1,938 4.3 % 27.9 315,063 Originated loans 2,070,758 2,066,798 5,760 6.5 % 29.5 8,829,599 Total residential mortgage loans, held-for-sale, at fair value $ 3,387,888 $ 3,297,271 12,172 6.0 % 26.4 $ 11,214,924 Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market $ 3,505,735 $ 3,398,298 $ 11,347,845 (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) Residential mortgage loans, held-for-investment, at fair value is grouped and presented as part of Residential Loans and Variable Interest Entity Consumer Loans, Held-for-Investment, at Fair Value on the Consolidated Balance Sheets. (C) Performing loans are generally placed on nonaccrual status when principal or interest is 90 days or more past due. (D) As of December 31, 2022, Rithm Capital has placed non-performing loans, held-for-sale on nonaccrual status, except as described in (E) below. (E) Includes $523.1 million and $299.2 million UPB of Ginnie Mae EBO 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: Carrying Value (A) % of Portfolio Loan % of Portfolio Weighted Average Yield Weighted Average Original Life (Months) Weighted Average Committed Loan Balance to Value (B) December 31, 2022 Construction $ 965,495 46.8 % 622 37.1 % 8.3 % 15.0 76.8% / 65.6% Bridge 838,539 40.6 % 701 41.8 % 8.1 % 20.1 75.3% Renovation 259,994 12.6 % 354 21.1 % 8.3 % 13.0 78.0% / 66.1% $ 2,064,028 100.0 % 1,677 100.0 % 8.2 % 16.5 N/A December 31, 2021 Construction $ 610,446 40.3 % 486 33.2 % 8.3 % 16.0 75.6% / 65.0% Bridge 716,764 47.3 % 632 43.2 % 7.8 % 14.5 73.8% Renovation 188,552 12.4 % 346 23.6 % 8.1 % 13.4 78.5% / 78.5% $ 1,515,762 100.0 % 1,464 100.0 % 8.1 % 15.2 N/A (A) Represents fair value. (B) Weighted by commitment loan-to-value (“LTV”) for bridge loans, loan-to-cost (“LTC”) or loan-to-after-repair-value (“LTARV”) for construction and renovation loans. The following table summarizes the activity for Mortgage Loans Receivables: Balance at December 31, 2020 $ — Genesis acquisition (Note 3) 1,505,635 Initial loan advances 60,125 Construction holdbacks and draws 12,856 Paydowns and payoffs (60,867) Fair value adjustments due to: Changes in instrument-specific credit risk — Other factors (1,987) Balance at December 31, 2021 $ 1,515,762 Initial loan advances 1,438,117 Construction holdbacks and draws 559,294 Paydowns and payoffs (1,405,278) Purchased loans premium amortization (43,867) Balance at December 31, 2022 $ 2,064,028 Notes Receivable Loans Receivable Total Balance at December 31, 2020 $ 52,389 $ — $ 52,389 Fundings 6,688 250,000 256,688 Payment in Kind 5,298 4,135 9,433 Proceeds from repayments (3,188) (25,443) (28,631) Fair value adjustments due to: Changes in instrument-specific credit risk — — — Other factors (638) 939 301 Balance at December 31, 2021 $ 60,549 $ 229,631 $ 290,180 Fundings 9,000 — 9,000 Payment in Kind 3,741 9,195 12,936 Proceeds from repayments (9,000) (143,256) (152,256) Transfer to other assets (1,000) — (1,000) Fair value adjustments due to: Changes in instrument-specific credit risk (63,062) — (63,062) Other factors (228) (1,169) (1,397) Balance at December 31, 2022 $ — $ 94,401 $ 94,401 |
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 December 31, State Concentration 2022 2021 Florida 10.9 % 10.1 % California 10.2 % 15.7 % Texas 8.9 % 6.7 % New York 6.8 % 7.1 % Washington 4.4 % 7.5 % Georgia 4.2 % 3.1 % New Jersey 3.8 % 3.8 % Illinois 3.6 % 2.8 % Indiana 3.2 % 2.0 % Maryland 3.1 % 3.1 % Other U.S. 40.9 % 38.1 % 100.0 % 100.0 % |
Schedule of Performing Loans Past Due | The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate fair value of loans: December 31, 2022 2021 Days Past Due UPB Fair Value Fair Value Over (Under) UPB Unpaid Principal Balance Fair Value Fair Value Over (Under) UPB 90+ $ 468,147 $ 423,321 $ (44,826) $ 779,178 $ 740,043 $ (39,135) The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate fair value of Mortgage Loans Receivable: December 31, 2022 2021 Days Past Due UPB Fair Value Fair Value Over (Under) UPB UPB Fair Value Fair Value Over (Under) UPB Current $ 2,064,028 $ 2,064,028 $ — $ 1,473,894 $ 1,515,762 $ 41,868 90+ — — — — — — $ 2,064,028 $ 2,064,028 $ — $ 1,473,894 $ 1,515,762 $ 41,868 The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate fair value of notes and loans receivable: December 31, 2022 2021 Days Past Due UPB Fair Value Fair Value Over (Under) UPB Unpaid Principal Balance Fair Value Fair Value Over (Under) UPB Current $ 157,745 $ 94,401 $ (63,344) $ 289,065 $ 290,180 $ 1,115 90+ — — — — — — |
Schedule of Loans Held For Sale, Fair Value | The following table summarizes the activity for residential mortgage loans: Loans Held-for-Investment Loans Held-for-Sale, at Lower Cost or Fair Value Loans Held-for-Sale, at Fair Value Total Balance at December 31, 2020 $ 674,179 $ 509,887 $ 4,705,816 $ 5,889,882 Caliber acquisition (Note 3) — — 7,685,681 7,685,681 Originations — — 123,059,895 123,059,895 Sales — (374,683) (131,960,935) (132,335,618) Purchases/additional fundings — — 8,102,055 8,102,055 Proceeds from repayments (120,247) (32,826) (520,334) (673,407) Transfer of loans to other assets (A) — (585) 22,112 21,527 Transfer of loans to real estate owned (15,165) (7,145) (3,958) (26,268) Valuation provision on loans — 38,273 — 38,273 Fair value adjustments due to: Changes in instrument-specific credit risk (2,020) — (18,099) (20,119) Other factors 33,186 — 142,691 175,877 Balance at December 31, 2021 $ 569,933 $ 132,921 $ 11,214,924 $ 11,917,778 Originations — — 67,406,228 67,406,228 Sales — (4,426) (81,648,703) (81,653,129) Purchases/additional fundings 7,182 — 6,880,225 6,887,407 Proceeds from repayments (80,661) (17,777) (394,613) (493,051) Transfer of loans to other assets (A) — — (25,375) (25,375) Transfer of loans to real estate owned (4,956) (1,386) (752) (7,094) Transfers of loans to held-for-sale (1,580) — — (1,580) Transfers of loans to from held-for-investment — — 1,582 1,582 Valuation provision on loans — (8,305) — (8,305) Fair value adjustments due to: Changes in instrument-specific credit risk (33,086) — (36,204) (69,290) Other factors (4,313) — (100,041) (104,354) Balance at December 31, 2022 $ 452,519 $ 101,027 $ 3,297,271 $ 3,850,817 (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 14). |
Schedule of Net Interest Income | The following table summarizes interest income related to Servicer Advance Investments: Year Ended December 31, 2022 2021 2020 Interest income, gross of amounts attributable to servicer compensation $ 15,821 $ 12,501 $ 34,262 Amounts attributable to basic servicer compensation (891) (1,798) (3,248) Amounts attributable to incentive servicer compensation 27,075 (9,025) (12,832) Interest income from servicer advance investments $ 42,005 $ 1,678 $ 18,182 December 31, 2022 2021 2020 Interest income: Loans held-for-investment, at fair value $ 45,287 $ 44,369 $ 53,264 Loans held-for-sale, at lower of cost or fair value 6,898 23,280 50,130 Loans held-for-sale, at fair value 211,238 260,062 135,729 Total interest income 263,423 327,711 239,123 Interest expense: Loans held-for-investment, at fair value 17,583 16,919 21,029 Loans held-for-sale, at lower of cost or fair value 3,402 21,333 22,541 Loans held-for-sale, at fair value and SFR properties 181,071 159,413 90,064 Total interest expense 202,056 197,665 133,634 Net interest income $ 61,367 $ 130,046 $ 105,489 |
Schedule of Originated Mortgage Loans | The following table summarizes the components of Gain on Originated Residential Mortgage Loans, Held-for-Sale, Net: Year Ended December 31, 2022 2021 2020 Gain (loss) on residential mortgage loans originated and sold, net (A) $ (1,106,458) $ 460,062 $ 811,288 Gain (loss) on settlement of residential mortgage loan origination derivative instruments (B) 1,285,219 240,610 (361,755) MSRs retained on transfer of residential mortgage loans (C) 1,222,742 1,331,626 666,414 Other (D) 33,551 107,249 49,270 Realized gain on sale of originated residential mortgage loans, net $ 1,435,054 $ 2,139,547 $ 1,165,217 Change in fair value of residential mortgage loans (271,530) (137,503) 99,908 Change in fair value of interest rate lock commitments (Note 18) (102,992) (293,699) 249,183 Change in fair value of derivative instruments (Note 18) 25,700 118,564 (115,216) Gain on originated residential mortgage loans, held-for-sale, net $ 1,086,232 $ 1,826,909 $ 1,399,092 (A) Includes residential mortgage loan origination fees of $0.6 billion, $2.3 billion and $1.7 billion in the year ended December 31, 2022, 2021 and 2020, respectively. (B) Represents settlement of forward securities delivery commitments utilized as an economic hedge for residential 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) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of the Investment in Consumer Loan Companies | The following table summarizes characteristics of the consumer loan portfolio: Unpaid Principal Balance Carrying Value Weighted Average Coupon Weighted Average Expected Life (Years) December 31, 2022 Total consumer loans $ 330,428 $ 363,756 17.8 % 3.4 December 31, 2021 Total consumer loans $ 449,875 $ 507,291 17.5 % 3.2 |
Schedule 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 fair value of consumer loans: December 31, 2022 2021 Days Past Due UPB Fair Value Fair Value Over (Under) UPB UPB Fair Value Fair Value Over (Under) UPB Current $ 325,192 $ 358,057 $ 32,865 $ 442,481 $ 499,059 $ 56,578 90+ 5,236 5,699 463 7,394 8,232 838 Total $ 330,428 $ 363,756 $ 33,328 $ 449,875 $ 507,291 $ 57,416 |
Schedule of Carrying Value of Performing Consumer Loans | The following table summarizes activities related to the carrying value of consumer loans: Balance at December 31, 2020 $ 685,575 Additional fundings (A) 29,002 Proceeds from repayments (206,078) Accretion of loan discount and premium amortization, net 18,925 Fair value adjustments due to: Changes in instrument-specific credit risk 22,915 Other factors (43,048) Balance at December 31, 2021 $ 507,291 Additional fundings (A) 29,615 Proceeds from repayments (150,301) Accretion of loan discount and premium amortization, net 13,891 Fair value adjustments due to: Changes in instrument-specific credit risk 1,540 Other factors (38,280) Balance at December 31, 2022 $ 363,756 (A) Represents draws on consumer loans with revolving privileges. |
SINGLE-FAMILY RENTAL PROPERTI_2
SINGLE-FAMILY RENTAL PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Schedule of Single-Family Rental Properties | The following table summarizes the net carrying value of investments in single-family rental (“SFR”) properties: December 31, 2022 2021 Land $ 175,607 $ 109,152 Building 702,427 436,610 Capital improvements 118,999 40,655 Total gross investment in SFR properties 997,033 586,417 Accumulated depreciation (25,720) (6,810) Investment in SFR properties, net $ 971,313 $ 579,607 |
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: Balance at December 31, 2020 $ 41,271 Acquisitions and capital improvements 544,408 Dispositions — Accumulated depreciation (6,072) Balance at December 31, 2021 $ 579,607 Acquisitions and capital improvements 415,858 Dispositions (5,242) Accumulated depreciation (18,910) Balance at December 31, 2022 $ 971,313 The following table summarizes the activity of the SFR portfolio by units: Balance at December 31, 2020 257 Acquisition of SFR units 2,294 Disposition of SFR units — Balance at December 31, 2021 2,551 Acquisition of SFR units 1,226 Disposition of SFR units (16) Balance at December 31, 2022 3,761 |
Schedule of Future Minimum Rental Revenues | The following table summarizes our future minimum rental revenues under existing leases on SFR properties: 2023 $ 33,119 2024 and thereafter 954 Total $ 34,073 |
MORTGAGE LOANS RECEIVABLE (Tabl
MORTGAGE LOANS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO | The following table summarizes residential mortgage loans outstanding by loan type: December 31, 2022 2021 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 (B) $ 538,710 $ 452,519 9,612 8.5 % 4.3 $ 569,933 Acquired performing loans (C) 85,049 72,425 2,249 8.5 % 5.2 130,634 Acquired non-performing loans (D) 32,798 28,602 448 7.8 % 3.0 2,287 Total residential mortgage loans, held-for-sale, at lower of cost or market $ 117,847 $ 101,027 2,697 8.3 % 4.6 $ 132,921 Acquired performing loans (C)(E) 947,910 890,131 4,474 5.7 % 19.2 2,070,262 Acquired non-performing loans (D)(E) 369,220 340,342 1,938 4.3 % 27.9 315,063 Originated loans 2,070,758 2,066,798 5,760 6.5 % 29.5 8,829,599 Total residential mortgage loans, held-for-sale, at fair value $ 3,387,888 $ 3,297,271 12,172 6.0 % 26.4 $ 11,214,924 Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market $ 3,505,735 $ 3,398,298 $ 11,347,845 (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) Residential mortgage loans, held-for-investment, at fair value is grouped and presented as part of Residential Loans and Variable Interest Entity Consumer Loans, Held-for-Investment, at Fair Value on the Consolidated Balance Sheets. (C) Performing loans are generally placed on nonaccrual status when principal or interest is 90 days or more past due. (D) As of December 31, 2022, Rithm Capital has placed non-performing loans, held-for-sale on nonaccrual status, except as described in (E) below. (E) Includes $523.1 million and $299.2 million UPB of Ginnie Mae EBO 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: Carrying Value (A) % of Portfolio Loan % of Portfolio Weighted Average Yield Weighted Average Original Life (Months) Weighted Average Committed Loan Balance to Value (B) December 31, 2022 Construction $ 965,495 46.8 % 622 37.1 % 8.3 % 15.0 76.8% / 65.6% Bridge 838,539 40.6 % 701 41.8 % 8.1 % 20.1 75.3% Renovation 259,994 12.6 % 354 21.1 % 8.3 % 13.0 78.0% / 66.1% $ 2,064,028 100.0 % 1,677 100.0 % 8.2 % 16.5 N/A December 31, 2021 Construction $ 610,446 40.3 % 486 33.2 % 8.3 % 16.0 75.6% / 65.0% Bridge 716,764 47.3 % 632 43.2 % 7.8 % 14.5 73.8% Renovation 188,552 12.4 % 346 23.6 % 8.1 % 13.4 78.5% / 78.5% $ 1,515,762 100.0 % 1,464 100.0 % 8.1 % 15.2 N/A (A) Represents fair value. (B) Weighted by commitment loan-to-value (“LTV”) for bridge loans, loan-to-cost (“LTC”) or loan-to-after-repair-value (“LTARV”) for construction and renovation loans. The following table summarizes the activity for Mortgage Loans Receivables: Balance at December 31, 2020 $ — Genesis acquisition (Note 3) 1,505,635 Initial loan advances 60,125 Construction holdbacks and draws 12,856 Paydowns and payoffs (60,867) Fair value adjustments due to: Changes in instrument-specific credit risk — Other factors (1,987) Balance at December 31, 2021 $ 1,515,762 Initial loan advances 1,438,117 Construction holdbacks and draws 559,294 Paydowns and payoffs (1,405,278) Purchased loans premium amortization (43,867) Balance at December 31, 2022 $ 2,064,028 Notes Receivable Loans Receivable Total Balance at December 31, 2020 $ 52,389 $ — $ 52,389 Fundings 6,688 250,000 256,688 Payment in Kind 5,298 4,135 9,433 Proceeds from repayments (3,188) (25,443) (28,631) Fair value adjustments due to: Changes in instrument-specific credit risk — — — Other factors (638) 939 301 Balance at December 31, 2021 $ 60,549 $ 229,631 $ 290,180 Fundings 9,000 — 9,000 Payment in Kind 3,741 9,195 12,936 Proceeds from repayments (9,000) (143,256) (152,256) Transfer to other assets (1,000) — (1,000) Fair value adjustments due to: Changes in instrument-specific credit risk (63,062) — (63,062) Other factors (228) (1,169) (1,397) Balance at December 31, 2022 $ — $ 94,401 $ 94,401 |
Schedule of Performing Loans Past Due | The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate fair value of loans: December 31, 2022 2021 Days Past Due UPB Fair Value Fair Value Over (Under) UPB Unpaid Principal Balance Fair Value Fair Value Over (Under) UPB 90+ $ 468,147 $ 423,321 $ (44,826) $ 779,178 $ 740,043 $ (39,135) The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate fair value of Mortgage Loans Receivable: December 31, 2022 2021 Days Past Due UPB Fair Value Fair Value Over (Under) UPB UPB Fair Value Fair Value Over (Under) UPB Current $ 2,064,028 $ 2,064,028 $ — $ 1,473,894 $ 1,515,762 $ 41,868 90+ — — — — — — $ 2,064,028 $ 2,064,028 $ — $ 1,473,894 $ 1,515,762 $ 41,868 The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate fair value of notes and loans receivable: December 31, 2022 2021 Days Past Due UPB Fair Value Fair Value Over (Under) UPB Unpaid Principal Balance Fair Value Fair Value Over (Under) UPB Current $ 157,745 $ 94,401 $ (63,344) $ 289,065 $ 290,180 $ 1,115 90+ — — — — — — |
Schedule of Geographic Distribution of Mortgage Loans Receivable | The following table summarizes the geographic distribution of the underlying Mortgage Loans Receivable as of December 31, 2022: Percentage of Total Loan Commitment State Concentration December 31, 2022 December 31, 2021 California 52.7 % 58.9 % Washington 10.2 % 12.2 % New York 5.9 % 5.6 % Other U.S. 31.2 % 23.3 % 100.0 % 100.0 % |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Restricted Cash | The following table summarizes restricted cash balances: December 31, 2022 2021 MSRs and servicer advances $ 69,347 $ 27,182 Real estate and other securities 4,604 15,342 Consumer loans 15,930 21,961 SFR properties 4,627 2,482 Origination and servicing 161,249 128,588 Mortgage loans receivable 25,369 — Other — 312 Total restricted cash $ 281,126 $ 195,867 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: Year Ended December 31, 2022 2021 Cash and cash equivalents $ 1,336,508 $ 1,332,575 Restricted cash 281,126 195,867 Total cash, cash equivalents and restricted cash $ 1,617,634 $ 1,528,442 |
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: Year Ended December 31, 2022 2021 Cash and cash equivalents $ 1,336,508 $ 1,332,575 Restricted cash 281,126 195,867 Total cash, cash equivalents and restricted cash $ 1,617,634 $ 1,528,442 |
OTHER ASSETS AND LIABILITIES (T
OTHER ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income Assets And Liabilities | |
Schedule of Other Assets and Liabilities | Other Assets and Accrued Expenses and Other Liabilities consist of the following: Other Assets Accrued Expenses December 31, December 31, 2022 2021 2022 2021 Margin receivable, net (A) $ 20,614 $ 358,041 Margin payable $ 4,852 $ 9,821 Excess MSRs, at fair value (Note 5) 321,803 344,947 Interest payable 87,700 30,931 Servicer advance investments, at fair value (Note 6) 398,820 421,807 Accounts payable 155,492 345,901 Servicing fee receivables 128,438 117,935 Derivative liabilities (Note 18) 18,064 34,583 Principal and interest receivable 106,608 85,084 Accrued compensation and benefits 112,762 201,057 Equity investments (B) 71,388 81,052 Operating lease liabilities (Note 17) 101,225 142,620 Other receivables 146,131 233,342 Deferred tax liability 711,855 440,690 REO 19,379 21,641 Other liabilities 294,717 153,165 Goodwill (Note 16) (C) 85,199 85,199 $ 1,486,667 $ 1,358,768 Notes receivable, at fair value (D) — 60,549 Warrants, at fair value 19,346 27,354 Property and equipment 37,883 56,617 Intangible assets (Note 16) 141,413 143,133 Prepaid expenses 60,817 115,110 Operating lease right-of-use assets (Note 17) 77,329 117,131 Derivative assets (Note 18) 52,229 138,173 Loans receivable, at fair value (E) 94,401 229,631 Credit facilities receivable (F) 7,095 41,351 Loans in process and settlements in process (G) 8,849 11,681 Other assets 116,865 105,728 $ 1,914,607 $ 2,795,506 (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 funds that invest in (i) a commercial redevelopment project and (ii) operating companies in the single-family housing industry. The commercial redevelopment project is accounted for at fair value based on the net asset value of Rithm Capital’s investment. Equity investments also includes an investment in Covius Holding Inc. (“Covius”), a provider of various technology-enabled services to the mortgage and real estate industries, 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 a subordinated debt facility to Covius. The loan is accounted for under the fair value option. Electing the fair value option allows the Company to record changes in fair value in the Consolidated Statements of Income and provides users of the financial statements with better information regarding the effect of market factors. (E) 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 (see Note 24). The loans are accounted for under the fair value option. Electing the fair value option allows the Company to record changes in fair value in the Consolidated Statements of Income and provides users of the financial statements with better information regarding the effect of market factors. (F) Represents cash deposits and collections associated with certain collateral assets which are held by the lender trust until settled each month. |
Schedule of Real Estate Owned | The following table presents activity related to the carrying value of investments in REO: Balance at December 31, 2020 $ 45,299 Purchases 2,464 Transfer of loans to REO 30,015 Sales (A) (60,407) Valuation (provision) reversal 4,270 Balance at December 31, 2021 $ 21,641 Purchases 210 Transfer of loans to REO 14,936 Sales (A) (18,349) Valuation (provision) reversal 941 Balance at December 31, 2022 $ 19,379 (A) Recognized when control of the property has transferred to the buyer. |
Schedule of Accounts, Notes and Loans Receivable | The following table summarizes residential mortgage loans outstanding by loan type: December 31, 2022 2021 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 (B) $ 538,710 $ 452,519 9,612 8.5 % 4.3 $ 569,933 Acquired performing loans (C) 85,049 72,425 2,249 8.5 % 5.2 130,634 Acquired non-performing loans (D) 32,798 28,602 448 7.8 % 3.0 2,287 Total residential mortgage loans, held-for-sale, at lower of cost or market $ 117,847 $ 101,027 2,697 8.3 % 4.6 $ 132,921 Acquired performing loans (C)(E) 947,910 890,131 4,474 5.7 % 19.2 2,070,262 Acquired non-performing loans (D)(E) 369,220 340,342 1,938 4.3 % 27.9 315,063 Originated loans 2,070,758 2,066,798 5,760 6.5 % 29.5 8,829,599 Total residential mortgage loans, held-for-sale, at fair value $ 3,387,888 $ 3,297,271 12,172 6.0 % 26.4 $ 11,214,924 Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market $ 3,505,735 $ 3,398,298 $ 11,347,845 (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) Residential mortgage loans, held-for-investment, at fair value is grouped and presented as part of Residential Loans and Variable Interest Entity Consumer Loans, Held-for-Investment, at Fair Value on the Consolidated Balance Sheets. (C) Performing loans are generally placed on nonaccrual status when principal or interest is 90 days or more past due. (D) As of December 31, 2022, Rithm Capital has placed non-performing loans, held-for-sale on nonaccrual status, except as described in (E) below. (E) Includes $523.1 million and $299.2 million UPB of Ginnie Mae EBO 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: Carrying Value (A) % of Portfolio Loan % of Portfolio Weighted Average Yield Weighted Average Original Life (Months) Weighted Average Committed Loan Balance to Value (B) December 31, 2022 Construction $ 965,495 46.8 % 622 37.1 % 8.3 % 15.0 76.8% / 65.6% Bridge 838,539 40.6 % 701 41.8 % 8.1 % 20.1 75.3% Renovation 259,994 12.6 % 354 21.1 % 8.3 % 13.0 78.0% / 66.1% $ 2,064,028 100.0 % 1,677 100.0 % 8.2 % 16.5 N/A December 31, 2021 Construction $ 610,446 40.3 % 486 33.2 % 8.3 % 16.0 75.6% / 65.0% Bridge 716,764 47.3 % 632 43.2 % 7.8 % 14.5 73.8% Renovation 188,552 12.4 % 346 23.6 % 8.1 % 13.4 78.5% / 78.5% $ 1,515,762 100.0 % 1,464 100.0 % 8.1 % 15.2 N/A (A) Represents fair value. (B) Weighted by commitment loan-to-value (“LTV”) for bridge loans, loan-to-cost (“LTC”) or loan-to-after-repair-value (“LTARV”) for construction and renovation loans. The following table summarizes the activity for Mortgage Loans Receivables: Balance at December 31, 2020 $ — Genesis acquisition (Note 3) 1,505,635 Initial loan advances 60,125 Construction holdbacks and draws 12,856 Paydowns and payoffs (60,867) Fair value adjustments due to: Changes in instrument-specific credit risk — Other factors (1,987) Balance at December 31, 2021 $ 1,515,762 Initial loan advances 1,438,117 Construction holdbacks and draws 559,294 Paydowns and payoffs (1,405,278) Purchased loans premium amortization (43,867) Balance at December 31, 2022 $ 2,064,028 Notes Receivable Loans Receivable Total Balance at December 31, 2020 $ 52,389 $ — $ 52,389 Fundings 6,688 250,000 256,688 Payment in Kind 5,298 4,135 9,433 Proceeds from repayments (3,188) (25,443) (28,631) Fair value adjustments due to: Changes in instrument-specific credit risk — — — Other factors (638) 939 301 Balance at December 31, 2021 $ 60,549 $ 229,631 $ 290,180 Fundings 9,000 — 9,000 Payment in Kind 3,741 9,195 12,936 Proceeds from repayments (9,000) (143,256) (152,256) Transfer to other assets (1,000) — (1,000) Fair value adjustments due to: Changes in instrument-specific credit risk (63,062) — (63,062) Other factors (228) (1,169) (1,397) Balance at December 31, 2022 $ — $ 94,401 $ 94,401 |
Schedule of Performing Loans Past Due | The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate fair value of loans: December 31, 2022 2021 Days Past Due UPB Fair Value Fair Value Over (Under) UPB Unpaid Principal Balance Fair Value Fair Value Over (Under) UPB 90+ $ 468,147 $ 423,321 $ (44,826) $ 779,178 $ 740,043 $ (39,135) The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate fair value of Mortgage Loans Receivable: December 31, 2022 2021 Days Past Due UPB Fair Value Fair Value Over (Under) UPB UPB Fair Value Fair Value Over (Under) UPB Current $ 2,064,028 $ 2,064,028 $ — $ 1,473,894 $ 1,515,762 $ 41,868 90+ — — — — — — $ 2,064,028 $ 2,064,028 $ — $ 1,473,894 $ 1,515,762 $ 41,868 The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate fair value of notes and loans receivable: December 31, 2022 2021 Days Past Due UPB Fair Value Fair Value Over (Under) UPB Unpaid Principal Balance Fair Value Fair Value Over (Under) UPB Current $ 157,745 $ 94,401 $ (63,344) $ 289,065 $ 290,180 $ 1,115 90+ — — — — — — |
EXPENSES, CHANGES IN FAIR VAL_2
EXPENSES, CHANGES IN FAIR VALUE OF INVESTMENTS AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of General and Administrative Expenses | General and Administrative expenses consists of the following: Year Ended December 31, 2022 2021 2020 Legal and professional $ 78,837 $ 102,114 $ 70,502 Loan origination 108,149 196,989 92,081 Occupancy 116,526 70,616 36,799 Subservicing 162,972 224,138 201,444 Loan servicing 11,759 16,440 14,126 Property and maintenance 93,689 69,083 42,508 Other 303,496 184,648 90,981 Total general and administrative expenses $ 875,428 $ 864,028 $ 548,441 |
Schedule of Change in Fair Value of Investments | Change in Fair Value of Investments, Net consists of the following: Year Ended December 31, 2022 2021 2020 Real estate and other securities $ 235,591 $ (400,369) $ 28,455 Residential mortgage loans (173,644) 155,758 (107,604) Derivative instruments 1,094,467 298,803 (53,467) Other (A) (48,124) (42,469) (16,142) Change in fair value of investments, net $ 1,108,290 $ 11,723 $ (148,758) (A) Includes excess MSRs, servicer advance investments, consumer loans, and other. |
Schedule of Gain (Loss) on Settlement of Investments, Net | Gain (Loss) on Settlement of Investments, Net consists of the following: Year Ended December 31, 2022 2021 2020 Gain (loss) on sale of real estate securities $ (1,735,009) $ (89,811) $ (753,713) Sale of acquired residential mortgage loans 55,298 120,680 (5,662) Settlement of derivatives 374,464 (172,581) (74,812) Liquidated residential mortgage loans (42,639) (5,946) 4,644 Sale of REO (4,148) (6,622) (21,925) Extinguishment of debt — (1,485) (66,233) Other (7,645) (78,796) (12,430) Gain (loss) on settlement of investments, net $ (1,359,679) $ (234,561) $ (930,131) |
Schedule of Other Income (Loss), Net | Other Income (Loss), Net consists of the following: Year Ended December 31, 2022 2021 2020 Unrealized gain (loss) on secured notes and bonds payable $ 45,792 $ 12,991 $ (966) Rental revenue 54,567 13,750 2,422 Property and maintenance revenue 132,432 104,797 70,527 (Provision) reversal for credit losses on securities (7,345) 5,201 (13,404) Valuation and credit loss (provision) reversal on loans and real estate owned (7,617) 42,543 (110,208) Other income (loss) (86,517) 2,430 (83,980) Other income (loss), net $ 131,312 $ 181,712 $ (135,609) |
Schedule of Accretion and Other Amortization | Accretion and Other Amortization as reflected on the Consolidated Statements of Cash Flows consists of the following: Year Ended December 31, 2022 2021 2020 Accretion of net discount on securities and loans $ 29,023 $ 32,670 $ 96,148 Accretion of servicer advances receivable discount and investments 42,006 1,822 55,664 Accretion of excess mortgage servicing rights income 38,036 30,855 28,352 Amortization of deferred financing costs (15,427) (14,174) (22,733) Amortization of discount on secured notes and bonds payable — (13) (388) Amortization of discount on corporate debt (1,747) (1,778) (5,503) Total accretion and other amortization $ 91,891 $ 49,382 $ 151,540 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2020 $ 11,836 $ 12,540 $ 5,092 $ — $ 29,468 Goodwill acquired (A) — — — 55,731 55,731 Accumulated impairment loss — — — — — Balance at December 31, 2021 $ 11,836 $ 12,540 $ 5,092 $ 55,731 $ 85,199 Goodwill acquired (A) — — — — — Accumulated impairment loss — — — — — Balance at December 31, 2022 $ 11,836 $ 12,540 $ 5,092 $ 55,731 $ 85,199 (A) Refer to Note 3 for discussion regarding the Genesis acquisition. |
Schedule of Acquired Intangible Assets | The following table presents the details of identifiable intangible assets acquired: Estimated Useful Life Amount Purchased technology 7 $ 38,545 Trademarks/trade names 1 2,483 Total identifiable intangible assets $ 41,028 Estimated Useful Life Amount Customer relationships 9 $ 44,700 Trade name 5 5,900 License Indefinite 5,500 Total identifiable intangible assets $ 56,100 The following table summarizes the acquired identifiable intangible assets: As of December 31, Estimated Useful Lives (Years) 2022 2021 Gross Intangible Assets Customer relationships 3 to 9 $ 57,949 $ 57,949 Purchased technology 3 to 7 120,787 93,241 Trademarks / Trade names 1 to 5 10,259 10,259 188,995 161,449 Accumulated Amortization Customer relationships 12,960 6,574 Purchased technology 30,959 10,578 Trademarks / Trade names 3,663 1,164 47,582 18,316 Intangible Assets, Net Customer relationships 44,989 51,375 Purchased technology (A) 89,828 82,663 Trademarks / Trade names (B) 6,596 9,095 $ 141,413 $ 143,133 (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 Intangible Assets, Future Amortization Expense | The following table summarizes the expected future amortization expense for acquired definite-lived intangible assets as of December 31, 2022: Year Ending Amortization Expense 2023 $ 29,529 2024 27,101 2025 20,476 2026 16,164 2027 and thereafter 24,902 $ 118,172 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Future Commitments for Non-Cancelable Leases | As of December 31, 2022, future commitments under the non-cancelable leases are as follows: Year Ending Amount 2023 $ 29,631 2024 22,767 2025 16,930 2026 10,480 2027 8,630 2028 and thereafter 25,783 Total remaining undiscounted lease payments 114,221 Less: imputed interest 12,996 Total remaining discounted lease payments $ 101,225 |
Other Information Related to Operating Leases | Other information related to operating leases is summarized below: December 31, 2022 2021 Weighted-average remaining lease term (years) 5.7 5.5 Weighted-average discount rate 4.0 % 4.1 % |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives | Derivatives are recorded at fair value on the Consolidated Balance Sheets as follows: December 31, Balance Sheet Location 2022 2021 Derivative assets Interest rate swaps (A) Other assets $ 449 $ 52 Interest rate lock commitments Other assets 16,015 114,871 Options on treasury futures Other assets — 7,778 TBAs Other assets 35,765 15,472 $ 52,229 $ 138,173 Derivative liabilities Interest rate lock commitments Accrued expenses and other liabilities $ 7,229 $ 3,093 TBAs Accrued expenses and other liabilities 10,835 31,490 $ 18,064 $ 34,583 (A) Net of $1.2 billion and $60.7 million of related variation margin accounts as of December 31, 2022 and 2021, respectively. The following table summarizes notional amounts related to derivatives: December 31, 2022 2021 Interest rate swaps (A) $ 23,085,000 $ 11,490,000 Interest rate lock commitments 2,647,747 10,653,850 TBAs, short position (B) 8,473,221 22,697,706 TBAs, long position (B) 31,500 — Treasury futures — 314,500 Options on treasury futures — 3,200,000 (A) Includes $23.1 billion notional of receive LIBOR/pay fixed of 1.9% and $0.0 billion notional of receive fixed of 0.0%/pay LIBOR with weighted average maturities of 35 months and 0 months, respectively, as of December 31, 2022. Includes $11.5 billion notional of receive LIBOR/pay fixed of 1.1% and $0.0 billion notional of received fixed of 0.0% pay LIBOR with weighted average maturities of 42 months and 0 months, respectively, as of December 31, 2021. (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 Income: Year Ended December 31, 2022 2021 2020 Servicing revenue, net (A) TBAs $ (15,205) $ 10,483 $ — Treasury futures (1,746) (23,961) — Options on treasury futures 5,635 (17,003) — (11,316) (30,481) — Gain on originated residential mortgage loans, held for sale, net (A) Interest rate lock commitments (102,992) (293,699) 249,183 TBAs 25,700 118,564 (115,243) Forward loan sale commitments — — 27 (77,292) (175,135) 133,967 Change in fair value of investments (A) Interest rate swaps 1,064,961 298,803 (53,467) TBAs 29,506 — — 1,094,467 298,803 (53,467) Gain (loss) on settlement of investments, net (B) Interest rate swaps 94,816 (136,073) (2,685) TBAs (C) 279,648 (36,508) (72,127) 374,464 (172,581) (74,812) Total gain (loss) $ 1,380,323 $ (79,394) $ 5,688 (A) Represents unrealized gain (loss). (B) Excludes $79.0 million loss and $34.7 million loss for the year ended December 31, 2022 and 2021, respectively, included within Servicing Revenue, Net (Note 6). There was no gain or loss included within Servicing Revenue, Net for the year ended December 31, 2020. (C) Excludes $1.3 billion gain, $240.6 million gain and $361.8 million loss for the year ended December 31, 2022, 2021 and 2020, respectively, included within Gain on Originated Residential Mortgage Loans, Held-for-Sale, Net (Note 9). |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | The following table summarizes Secured Financing Agreements and Secured Notes and Bonds Payable debt obligations: December 31, 2022 December 31, 2021 Collateral Debt Obligations/Collateral 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 (C) Repurchase Agreements: Warehouse Credit Facilities-Residential Mortgage Loans (F) $ 2,603,833 $ 2,601,327 Feb-23 to Jan-25 5.9 % 0.8 $ 3,187,716 $ 3,114,791 $ 3,020,575 21.3 $ 10,138,297 Warehouse Credit Facility- Mortgage Loans Receivable (G) 1,220,662 1,220,662 Mar-23 to Dec-23 6.9 % 0.6 1,451,279 1,451,279 1,451,279 0.8 1,252,660 Agency RMBS (D) 6,821,788 6,821,788 Jan-23 to Feb-23 4.1 % 0.1 7,213,920 7,082,133 7,123,127 8.5 8,386,538 Non-Agency RMBS (E) 609,282 609,282 Jan-23 to Oct-27 6.5 % 1.1 14,824,678 946,631 946,197 7.1 656,874 SFR Properties (E) 4,677 4,677 Dec-24 7.1 % 2.0 N/A 7,765 7,765 NA 158,515 Total Secured Financing Agreements 11,260,242 11,257,736 5.0 % 0.4 20,592,884 Secured Notes and Bonds Payable Excess MSRs (H) 227,596 227,596 Aug-25 3.7 % 2.6 67,454,370 260,828 317,146 6.1 237,835 MSRs (I) 4,800,001 4,791,543 Mar-23 to Nov-27 6.1 % 2.4 532,218,484 6,811,636 8,833,825 6.9 4,234,771 Servicer Advance Investments (J) 319,276 318,445 Aug-23 to Mar-24 6.5 % 1.2 341,628 392,749 398,820 8.4 355,722 Servicer Advances (J) 2,364,757 2,361,259 Feb-23 to Nov-26 4.1 % 1.1 2,847,234 2,825,485 2,825,485 0.7 2,355,969 Residential Mortgage Loans (K) 770,897 769,988 May-24 to Jul-43 5.4 % 1.9 775,314 791,534 791,534 28.5 802,526 Consumer Loans (L) 330,772 299,498 Sep-37 2.1 % 3.3 330,397 343,947 363,725 3.5 458,580 SFR Properties 863,029 817,695 Mar-23 to Sep-27 3.6 % 3.8 N/A 963,547 963,547 N/A 199,407 Mortgage Loans Receivable 524,062 512,919 Jul 26 to Dec-26 5.4 % 3.8 569,486 569,486 569,486 0.6 — Total Secured Notes and Bonds Payable 10,200,390 10,098,943 5.2 % 2.2 0 8,644,810 Total/Weighted Average $ 21,460,632 $ 21,356,679 5.1 % 1.2 $ 631,214,506 $ 25,561,811 $ 27,612,511 $ 29,237,694 (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 $80.5 million of associated interest payable as of December 31, 2022. (D) All fixed interest rates. (E) All LIBOR or SOFR-based floating interest rates. (F) Includes $278.6 million which bear interest at an average fixed interest rate of 5.1% with the remaining having LIBOR or SOFR-based floating interest rates. (G) All LIBOR or SOFR-based floating interest rates. (H) Includes $227.6 million of corporate loans which bear interest at a fixed interest rate of 3.7%. (I) Includes $3.0 billion of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR or SOFR, and (ii) a margin ranging from 2.5% to 3.3%; and $1.8 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. (J) $1.2 billion face amount of the notes has a fixed rate while the remaining notes bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 1.2% to 3.3%. Collateral includes Servicer Advance Investments, as well as servicer advances receivable related to the MSRs and MSR Financing Receivables owned by NRM. (K) Represents (i) $20.9 million of SAFT 2013-1 mortgage-backed securities issued with fixed interest rate of 3.7% and (ii) $750.0 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 LIBOR plus 1.1%. (L) Includes the SpringCastle debt, comprising the following classes of asset-backed notes held by third parties: $277.7 million UPB of Class A notes with a coupon of 2.0% and a stated maturity date in September 2037 and $53.0 million UPB of Class B notes with a coupon of 2.7% and a stated maturity date in September 2037 (collectively, “SCFT 2020-A”). 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 Mortgage Loans Receivable Total Balance at December 31, 2020 $ 275,088 $ 2,691,791 $ 3,008,719 $ 13,499,636 $ 5,082,296 $ 628,759 $ 5,586 $ — $ 25,191,875 Secured Financing Agreements Acquired borrowings, net of discount (Note 3) — — — — 7,090,577 — — — 7,090,577 Borrowings — — — 64,749,425 129,676,976 — 199,713 1,278,647 195,904,761 Repayments — — — (69,206,600) (130,719,004) — — (25,987) (199,951,591) Capitalized deferred financing costs, net of amortization — — — 951 812 — (306) — 1,457 Secured Notes and Bonds Payable Acquired borrowings, net of discount — 1,045,000 76,772 — — — — — 1,121,772 Borrowings — 4,042,325 2,971,974 — 796,849 — 152,929 — 7,964,077 Repayments (37,253) (3,549,148) (3,346,873) — (974,176) (170,623) — — (8,078,073) Unrealized (gain) loss on notes, fair value — — — — (13,435) 444 — — (12,991) Capitalized deferred financing costs, net of amortization — 4,803 1,099 — (72) — — — 5,830 Balance at December 31, 2021 $ 237,835 $ 4,234,771 $ 2,711,691 $ 9,043,412 $ 10,940,823 $ 458,580 $ 357,922 $ 1,252,660 $ 29,237,694 Secured Financing Agreements Borrowings — — — 54,385,892 73,782,327 — 206,595 2,080,495 130,455,309 Repayments — — — (55,998,234) (81,320,424) — (360,433) (2,112,492) (139,791,583) Capitalized deferred financing costs, net of amortization — — — — 1,128 — — — 1,128 Secured Notes and Bonds Payable Borrowings — 2,027,637 2,804,677 — — — 879,947 524,062 6,236,323 Repayments (10,239) (1,473,037) (2,839,257) — (33,204) (123,770) (216,631) — (4,696,138) Discount on borrowings, net of amortization — — — — — — (42,030) — (42,030) Unrealized (gain) loss on notes, fair value — — — — 665 (35,312) — (11,144) (45,791) Capitalized deferred financing costs, net of amortization — 2,172 2,593 — — — (2,998) — 1,767 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 (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 December 31, 2022: Year Ending Nonrecourse (A) Recourse (B) Total 2023 $ 1,359,547 $ 11,464,276 $ 12,823,823 2024 2,143,523 1,865,962 4,009,485 2025 — 2,017,629 2,017,629 2026 — 1,798,784 1,798,784 2027 and thereafter 1,080,910 280,000 1,360,910 $ 4,583,980 $ 17,426,651 $ 22,010,631 (A) Includes secured notes and bonds payable of $4.6 billion. (B) Includes secured financing agreements and secured notes and bonds payable of $11.2 billion and $6.2 billion, respectively. |
Schedule of Borrowing Capacity | The following table summarizes borrowing capacity as of December 31, 2022: Debt Obligations/ Collateral Borrowing Capacity Balance Outstanding Available Financing (A) Secured Financing Agreements Residential mortgage loans and REO $ 4,284,838 $ 1,978,037 $ 2,306,801 Loan originations 12,461,331 1,851,134 10,610,197 Secured Notes and Bonds Payable Excess MSRs 286,380 227,596 58,784 MSRs 5,806,207 4,800,001 1,006,207 Servicer advances 3,245,669 2,684,033 561,636 Residential mortgage loans 290,714 224,504 66,210 $ 26,375,139 $ 11,765,305 $ 14,609,835 |
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 2022 103.125% 2023 101.563% 2024 and thereafter 100.000% |
FAIR VALUE MEASURMENTS (Tables)
FAIR VALUE MEASURMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Fair Values of Financial Assets and Liabilities 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 December 31, 2022 were as follows: Principal Balance or Notional Amount Carrying Value Fair Value Level 1 Level 2 Level 3 Total Assets: Excess MSRs (A) $ 67,454,370 $ 321,803 $ — $ — $ 321,803 $ 321,803 MSRs and MSR financing receivables (A) 539,897,324 8,889,403 — — 8,889,403 8,889,403 Servicer advance investments 341,628 398,820 — — 398,820 398,820 Real estate and other securities 25,370,934 8,289,277 — 7,338,417 950,860 8,289,277 Residential mortgage loans, held-for-sale 117,847 101,027 — — 101,196 101,196 Residential mortgage loans, held-for-sale, at fair value 3,387,888 3,297,271 — 3,035,894 261,377 3,297,271 Residential mortgage loans, held-for-investment, at fair value 538,710 452,519 — — 452,519 452,519 Residential mortgage loans subject to repurchase 1,219,890 1,219,890 — 1,219,890 — 1,219,890 Consumer loans 330,428 363,756 — — 363,756 363,756 Derivative assets 33,174,574 52,229 — 36,214 16,015 52,229 Mortgage loans receivable (B) 2,064,028 2,064,028 — 349,975 1,714,053 2,064,028 Note receivable 63,114 — — — — — Loans receivable 94,631 94,401 — — 94,401 94,401 Cash and cash equivalents 1,336,508 1,336,508 1,336,508 — — 1,336,508 Restricted cash 281,126 281,126 281,126 — — 281,126 Other assets (C) N/A 23,370 — — 23,370 23,370 $ 27,185,428 $ 1,617,634 $ 11,980,390 $ 13,587,573 $ 27,185,597 Liabilities: Secured financing agreements $ 11,260,242 $ 11,257,737 $ — $ 11,257,737 $ — $ 11,257,737 Secured notes and bonds payable (D) 10,200,390 10,098,942 — — 9,911,778 9,911,778 Unsecured senior notes, net of issuance costs 545,056 545,056 — — 493,064 493,064 Residential mortgage loan repurchase liability 1,219,890 1,219,890 — 1,219,890 — 1,219,890 Derivative liabilities 1,062,894 18,064 — 10,835 7,229 18,064 $ 23,139,689 $ — $ 12,488,462 $ 10,412,071 $ 22,900,533 (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 Rithm Capital’s economic interests in the VIEs consolidated and accounted for under the collateralized financing entity (“CFE”) election. As of December 31, 2022, the fair value of Rithm Capital’s interests in the mortgage loans receivable securitization was $45.8 million. (C) Excludes the indirect equity investment in a commercial redevelopment project that is accounted for at fair value on a recurring basis based on the NAV of Rithm Capital’s investment. The investment had a fair value of $23.8 million as of December 31, 2022. (D) Includes SAFT 2013-1, 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 $632.4 million as of December 31, 2022. 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 December 31, 2021 were as follows: Principal Balance or Notional Amount Carrying Value Fair Value Level 1 Level 2 Level 3 Total Assets: Excess MSRs (A) $ 80,461,630 $ 344,947 $ — $ — $ 344,947 $ 344,947 MSRs and MSR financing receivables (A) 548,613,089 6,858,803 — — 6,858,803 6,858,803 Servicer advance investments 369,440 421,807 — — 421,807 421,807 Real estate and other securities 24,314,300 9,396,539 — 8,444,597 951,942 9,396,539 Residential mortgage loans, held-for-sale 144,967 132,921 — — 134,655 134,655 Residential mortgage loans, held-for-sale, at fair value 10,955,534 11,214,924 — 9,361,520 1,853,404 11,214,924 Residential mortgage loans, held-for-investment, at fair value 623,937 569,933 — — 569,933 569,933 Residential mortgage loans subject to repurchase 1,787,314 1,787,314 — 1,787,314 — 1,787,314 Consumer loans 449,875 507,291 — — 507,291 507,291 Derivative assets 47,080,263 138,173 — 23,302 114,871 138,173 Mortgage loans receivable 1,473,894 1,515,762 — — 1,515,762 1,515,762 Note receivable 60,373 60,549 — — 60,549 60,549 Loans receivable 228,692 229,631 — — 229,631 49,889 Cash and cash equivalents 1,332,575 1,332,575 1,332,575 — — 1,332,575 Restricted cash 195,867 195,867 195,867 — — 195,867 Other assets (B) N/A 39,229 3,134 — 36,095 39,229 $ 34,746,265 $ 1,531,576 $ 19,616,733 $ 13,599,690 $ 34,747,999 Liabilities: Secured financing agreements $ 20,596,842 $ 20,592,884 $ — $ 20,596,842 $ — $ 20,596,842 Secured notes and bonds payable (C) 8,676,644 8,644,810 — — 8,662,463 8,662,463 Unsecured senior notes, net of issuance costs 543,293 543,293 — — 553,581 541,516 Residential mortgage loan repurchase liability 1,787,314 1,787,314 — 1,787,314 — 1,787,314 Derivative liabilities 1,275,793 34,583 — 31,490 3,093 34,583 Contingent consideration N/A 4,951 — — 4,951 4,951 $ 31,607,835 $ — $ 22,415,646 $ 9,224,088 $ 31,639,734 (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) Excludes the indirect equity investment in a commercial redevelopment project that is accounted for at fair value on a recurring basis based on the NAV of Rithm Capital’s investment. The investment had a fair value of $28.7 million as of December 31, 2021. (C) Includes the SAFT 2013-1, MDST Trusts and SCFT 2020-A mortgage backed securities issued for which the fair value option for financial instruments was elected and resulted in a fair value of $511.1 million as of December 31, 2021. |
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 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 Total Balance at December 31, 2020 $ 410,855 $ 4,585,841 $ 538,056 $ 1,180,924 $ 289,074 $ 2,320,384 $ 685,575 $ 52,389 $ — $ 10,063,098 Transfers Transfers to Level 3 — — — — — 2,386 — — — 2,386 Acquisitions (Note 3) — 1,507,524 — — 116,403 — — — 1,505,635 3,129,562 Gains (losses) included in net income Reversal (provision) for credit losses on securities (D) — — — 5,201 — — — — — 5,201 Change in fair value of excess MSRs (D) (15,078) — — — — — — — — (15,078) Change in fair value of excess MSRs, equity method investees (D) 1,818 — — — — — — — — 1,818 Servicing revenue, net (E) — (513,686) — — — — — — — (513,686) Change in fair value of servicer advance investments — — (9,076) — — — — — — (9,076) Change in fair value of consumer loans — — — — — — (20,133) — — (20,133) Change in fair value of residential mortgage loans — — — — — 155,758 — — — 155,758 Gain (loss) on settlement of investments, net 404 — — (28,550) — — — — — (28,146) Other income (loss), net (D) (326) — — 9,136 (293,699) (1,357) — 301 — (285,945) Gains (losses) included in other comprehensive income (F) — — — 28,882 — — — — — 28,882 Interest income 20,296 — 1,678 13,740 — — 18,925 9,433 — 64,072 Purchases, sales and repayments Purchases, net (G) — 10,949 1,286,526 174,340 — 4,128,097 29,002 6,688 — 5,635,602 Proceeds from sales (984) (63,451) — (164,630) — (3,675,071) — — — (3,904,136) Proceeds from repayments (72,038) — (1,395,377) (267,101) — (487,830) (206,078) (28,631) (60,867) (2,517,922) Originations and other — 1,331,626 — — — (19,030) — 250,000 70,994 1,633,590 Balance at December 31, 2021 $ 344,947 $ 6,858,803 $ 421,807 $ 951,942 $ 111,778 $ 2,423,337 $ 507,291 $ 290,180 $ 1,515,762 $ 13,425,847 Transfers Transfers from Level 3 — — — — — (1,279,709) — (1,000) (445,403) (1,726,112) Transfers to Level 3 — — — — — 313,559 — — — 313,559 Gains (losses) included in net income Reversal (provision) for credit losses on securities (D) — — — (710) — — — — — (710) Change in fair value of excess MSRs (D) (2,962) — — — — — — — — (2,962) Change in fair value of excess MSRs, equity method investees (D) 1,526 — — — — — — — — 1,526 Servicing revenue, net (E) — 823,107 — — — — — — — 823,107 Change in fair value of servicer advance investments — — (9,950) — — — — — — (9,950) Change in fair value of real estate securities — — (16,076) — — — — — (16,076) Change in fair value of consumer loans — — — — — — (36,740) — — (36,740) Change in fair value of residential mortgage loans — — — — — (124,359) — — — (124,359) Gain (loss) on settlement of investments, net 107 — — (1,560) — — — — (43,868) (45,321) Other income (loss), net (D) (65) — — — (102,992) (35,020) — (64,459) — (202,536) Gains (losses) included in other comprehensive income (F) — — — (45,709) — — — — — (45,709) Interest income 38,035 — 42,005 15,114 — — 13,891 12,936 — 121,981 Purchases, sales and repayments Purchases, net (G) — (967) 988,847 256,500 — 2,099,549 29,615 9,000 — 3,382,544 Proceeds from sales (997) (14,282) — (11,960) — (2,405,531) — — — (2,432,770) Proceeds from repayments (58,788) — (1,043,889) (196,681) — (272,224) (150,301) (152,256) (1,234,444) (3,108,583) Originations and other — 1,222,742 — — — (5,706) — — 1,922,006 3,139,042 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 (A) Includes the recapture agreement for each respective pool, as applicable. (B) Includes 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) Gains (loss) recorded in earnings during the period are 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) The components of Servicing Revenue, Net are disclosed in Note 6. (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, 2020 $ 1,662,852 Gains (losses) included in net income Included in other income (A) (12,991) Purchases, sales and payments Payments (1,138,754) Balance at December 31, 2021 $ 511,107 Gains (losses) included in net income Included in other income (A) (34,647) Purchases, sales and payments Payments (156,974) Balance at December 31, 2022 $ 319,486 (A) Gains (loss) recorded in earnings during the period are 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 tables summarize certain information regarding the ranges and weighted averages of significant inputs used: December 31, 2022 Significant Inputs (A) Prepayment Rate (B) Delinquency (C) Recapture Rate (D) Mortgage Servicing Amount (E) Collateral Weighted Average Maturity (Years) (F) Excess MSRs Directly Held 2.8% – 13.5% (7.3%) 0.2% – 10.1% (3.6%) —% – 91.4% (55.4%) 6 – 31 (19) 11 – 29 (21) Excess MSRs Held through Investees 8.4% – 11.0% (9.4%) 2.9% – 5.4% (3.9%) 45.4% – 64.0% (58.7%) 15 – 26 (21) 15 – 22 (19) MSRs and MSR Financing Receivables (Note 6) (H) Agency 2.6% – 97.8% (8.0%) 0.1% – 66.7% (2.0%) — (I) 7 – 104 (30) 0 – 39 (23) Non-Agency 1.3% – 93.2% (15.0%) 1.0% – 75.0% (21.1%) — (I) 2 – 216 (46) 0 – 36 (24) Ginnie Mae 2.8% – 81.2% (10.3%) 0.2% – 80.0% (8.9%) — (I) 11 – 86 (41) 0 – 39 (27) Total/Weighted Average—MSRs and MSR Financing Receivables 1.3% – 97.8% (9.2%) 0.1% – 80.0% (5.3%) — (I) 2 – 216 (34) 0 – 39 (24) December 31, 2021 Significant Inputs (A) Prepayment Rate (B) Delinquency (C) Recapture Rate (D) Mortgage Servicing Amount (E) Collateral Weighted Average Maturity (Years) (F) Excess MSRs Directly Held 3.6% – 12.4% (6.8%) 0.1% – 9.6% (3.2%) 0% – 25.2% (7.3%) 6 – 32 (19) 11 – 28 (21) Excess MSRs Held through Investees 5.4% – 8.5% (6.7%) 0.3% – 1.6% (0.9%) 3% – 9.5% (5.7%) 15 – 26 (22) 16 – 23 (19) MSRs and MSR Financing Receivables (Note 6) (H) Agency 6% – 14.6% (10.2%) 0.1% – 2.2% (0.9%) 0% – 31.4% (10.7%) 25 – 30 (28) 0 – 40 (23) Non-Agency 6.7% – 50.4% (6.7%) 0.7% – 64.6% (11.8%) 4% – 27% (6.8%) 26 – 86 (48) 0 – 30 (24) Ginnie Mae 5.3% – 14.3% (12.6%) 1.4% – 6.3% (4.1%) 4.8% – 24.5% (12.7%) 31 – 45 (39) 0 – 30 (28) Total/Weighted Average—MSRs and MSR Financing Receivables 5.3% – 50.4% (10.2%) 0.1% – 64.6% (3.1%) 0% – 31.4% (10%) 25 – 86 (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 its 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 bps. As of December 31, 2022 and 2021, weighted average costs of subservicing of $6.80 – $7.00 ($6.90) and $6.40 – $7.20 ($7.00), respectively, per loan per month was used to value the agency MSRs. Weighted average costs of subservicing of $7.30 – $17.20 ($8.70) and $10.60 – $15.80 ($10.70), respectively, per loan per month was used to value the non-agency MSRs, including MSR Financing Receivables. Weighted average cost of subservicing of $8.30 – $8.40 ($8.30) and $8.80 – $8.90 ($8.80), respectively, 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, the Excess MSR will be paid on the total UPB of the mortgage portfolio (including both performing and delinquent loans until REO). For these pools, no delinquency assumption is used. (H) For certain pools, recapture rate represents the expected recapture rate with the successor subservicer appointed by NRM. (I) Recapture is not considered a significant input for MSRs and MSR Financing Receivables. Rithm Capital’s securities valuation methodology and results are further detailed as follows: Fair Value Asset Type Outstanding Face Amount Amortized Cost Basis Multiple Quotes (A) Single Quote (B) Total Level December 31, 2022 Agency RMBS $ 7,463,522 $ 7,290,473 $ 7,338,417 $ — $ 7,338,417 2 Non-Agency RMBS (C) 17,907,412 947,346 950,846 14 950,860 3 Total $ 25,370,934 $ 8,237,819 $ 8,289,263 $ 14 $ 8,289,277 December 31, 2021 Agency RMBS $ 8,399,343 $ 8,663,693 $ 8,444,597 $ — $ 8,444,597 2 Non-Agency RMBS (C) 15,914,957 886,643 951,942 — 951,942 3 Total $ 24,314,300 $ 9,550,336 $ 9,396,539 $ — $ 9,396,539 (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 and 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 actually 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 50.4% 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 $ 479,406 3.5% – 15.0% (6.5%) 0.0% – 25.0% (11.1%) 0.0% – 12.0% (0.6%) 0.0% – 88.0% (10.3%) (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 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 significant 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 $ 52,467 8.5% – 8.7% (8.5%) 9.3% – 11.4% (9.7%) 4.3% – 8.3% (5.0%) 20.0% – 37.1% (24.1%) Originated 183,985 N/A N/A N/A N/A Residential mortgage loans held-for-sale, at fair value $ 236,452 Non-Performing Loans Fair Value Discount Rate Annual change in home prices Liquidation Timeline Current Value of Underlying Properties Acquired $ 20,759 8.7% – 55.9% (9.0%) 33.2% – 55.9% (40.7%) 2.2 – 3.8 (2.8) 191.6% – 260.6% (214.5%) Originated 4,166 N/A N/A N/A N/A Residential mortgage loans held-for-sale, at fair value $ 24,925 The following table summarizes certain information regarding the ranges and weighted averages of significant 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 $ 452,519 3.8% – 8.7% (8.5%) 9.3% – 16.3% (12.3%) 0.1% – 13.7% (6.7%) 23.2% – 55.0% (40.3%) The following table summarizes certain information regarding the ranges and weighted averages of significant 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 Consumer loans held-for-investment, at fair value $ 363,756 8.3% – 9.3% (8.6%) 6.8% – 33.2% (28.7%) 0.0% – 7.1% (4.3%) 56.8% – 56.8% (56.8%) The following table summarizes certain information regarding the ranges and weighted averages of significant inputs used in valuing IRLCs: Fair Value Loan Funding Probability Fair Value of Initial Servicing Rights (bps) IRLCs, net $ 8,786 0.0% – 100.0% (82.5%) (150.2) – 324.6 (185.6) 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 $ 319,486 3.3% – 6.3% (6.1%) 13.7% – 21.8% (21.3%) 0.1% – 4.2% (3.9%) 44.0% – 94.7% (91.6%) |
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 significant inputs used in valuing the Servicer Advance Investments, including the basic fee component of the related MSRs: Significant Inputs Outstanding Prepayment Rate (A) Delinquency Mortgage Servicing Amount (B) Discount Collateral Weighted Average Maturity (Years) (C) December 31, 2022 1.2% – 2.2% (2.1%) 3.4% – 4.6% (4.6%) 3.4% – 19.6% (19.1%) 18.0 – 19.8 (19.8) bps 5.7% – 6.2% (5.7%) 21.9 December 31, 2021 0.7% – 1.8% (1.7%) 6.5% – 7.7% (7.7%) 8.2% – 15.0% (14.8%) 17.6 – 19.8 (19.7) bps 5.2% – 5.7% (5.2%) 22.1 (A) Projected annual weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (B) Mortgage servicing amount is net of 10.8 bps and 10.6 bps which represent the amounts Rithm Capital paid its servicers as a monthly servicing fee as of December 31, 2022 and 2021, respectively. (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 ranges and weighted averages of significant inputs used in valuing these residential mortgage loans: Fair Value Discount Rate Weighted Average Life (Years) (A) Prepayment Rate CDR (B) Loss Severity (C) December 31, 2022 Performing $ 72,595 5.3% – 8.7% (8.5%) 5.0 – 7.2 (5.2) 9.3% – 11.4% (9.4%) 4.3% – 8.3% (4.5%) 20.0% – 37.1% (23.9%) Non-performing 19,219 8.7% – 9.1% (8.9%) 2.2 – 3.8 (2.9) 16.3% – 31.1% (24.6%) 13.7% – 27.5% (21.5%) 39.5% – 39.8% (39.6%) Total/weighted average $ 91,814 8.6% 4.7 12.6% 8.0% 27.2% December 31, 2021 Performing $ 113,196 3.8% – 7.0% (6.8%) 4.8 – 8.8 (4.9) 4.8% – 7.4% (6.0%) 0.9% – 9.4% (5.9%) 40.9% – 54.7% (45.5%) Non-performing 2,287 7.5% – 7.5% (7.5%) 4.7 – 4.7 (4.7) 1.7% – 1.7% (1.7%) 16.7% – 16.7% (16.7%) 41.9% – 41.9% (41.9%) Total/weighted average $ 115,483 6.8% 4.9 5.9% 6.1% 45.4% (A) 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) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table summarizes the carrying value and classification of the assets and liabilities of consolidated VIEs on the Consolidated Balance Sheets: December 31, 2022 The Buyer Shelter Joint Ventures Residential Mortgage Loans Consumer Loan SPVs Mortgage Loans Receivable Total 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 Consumer loans — — — 363,756 — 363,756 Mortgage loans receivable — — — — 349,975 349,975 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 December 31, 2021 The Buyer Shelter Joint Ventures Residential Mortgage Loans Consumer Loan SPVs Servicer Advance Facilities MSR Financing Facilities Total Assets Mortgage servicing rights, at fair value $ — $ — $ — $ — $ — $ 403,301 $ 403,301 Servicer advance investments, at fair value 409,475 — — — — — 409,475 Residential mortgage loans, held-for-investment, at fair value — — 93,226 — — — 93,226 Residential mortgage loans, held-for-sale, at fair value — — 798,644 — — — 798,644 Consumer loans — — — 507,291 — — 507,291 Cash and cash equivalents 33,777 37,369 2,882 — — — 74,028 Restricted cash 2,210 — 171 7,249 — — 9,630 Servicer advance facilities — — — — 94,306 — 94,306 Other assets 9 903 2,902 6,851 24,699 332,521 367,885 Total Assets 445,471 38,272 897,825 521,391 119,005 735,822 2,757,786 Liabilities Secured financing agreements (A) — — 24,683 — — — 24,683 Secured notes and bonds payable (A) 348,670 — 802,526 458,580 93,145 367,871 2,070,792 Accrued expenses and other liabilities 806 6,588 10,163 862 27,771 134 46,324 Total Liabilities $ 349,476 $ 6,588 $ 837,372 $ 459,442 $ 120,916 $ 368,005 $ 2,141,799 (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 2022 2021 Residential mortgage loan UPB and other collateral $ 12,035,403 $ 10,752,079 Weighted average delinquency (A) 4.70% 4.45% Net credit losses $ 139,908 $ 130,392 Face amount of debt held by third parties (B) $ 11,050,277 $ 9,897,879 Carrying value of bonds retained by Rithm Capital (C)(D) $ 933,189 $ 927,490 Cash flows received by Rithm Capital on these bonds $ 214,941 $ 330,197 (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 20 for details on unobservable inputs. |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | Others’ interests in the equity of Rithm Capital’s consolidated subsidiaries is computed as follows: December 31, 2022 December 31, 2021 The Buyer (A) Shelter Joint Ventures Consumer Loan Companies The Buyer (A) Shelter Joint Ventures Consumer Loan Companies Total consolidated equity $ 114,180 $ 25,124 $ 91,263 $ 95,995 $ 31,684 $ 83,597 Others’ ownership interest 10.7 % 49.5 % 46.5 % 10.7 % 49.5 % 46.5 % Others’ interest in equity of consolidated subsidiary $ 12,193 $ 12,437 $ 42,437 $ 10,251 $ 15,683 $ 39,414 Others’ interests in the Rithm Capital’s net income (loss) is computed as follows: Year Ended December 31, 2022 2021 2020 The Buyer (A) Shelter Joint Ventures Consumer Loan Companies The Buyer (A) Shelter Joint Ventures Consumer Loan Companies The Buyer (A) Shelter Joint Ventures Consumer Loan Companies Net income $ 26,685 $ 5,487 $ 49,892 $ (13,937) $ 22,839 $ 51,307 $ 3,326 $ 31,188 $ 77,760 Others’ ownership interest as a percent of total 10.7 % 49.5 % 46.5 % 12.9 % 49.5 % 46.5 % 26.8 % 50.1 % 46.5 % Others’ interest in net income of consolidated subsidiaries $ 2,850 $ 2,716 $ 23,200 $ (1,800) $ 11,298 $ 23,858 $ 891 $ 15,625 $ 36,158 (A) Rithm Capital owned 89.3%, 89.3% and 73.2% of the Buyer as of the year ended December 31, 2022, 2021 and 2020, respectively. See Note 19 regarding the financing of Servicer Advance Investments. |
EQUITY AND ENARNINGS PER SHARE
EQUITY AND ENARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Preferred Shares | The table below summarizes preferred shares: Number of Shares Liquidation Preference (A) Dividends Declared per Share December 31, Year Ended December 31, Series 2022 2021 2022 2021 Issuance Discount Carrying Value (B) 2022 2021 2020 Series A, 7.50% issued July 2019 (C) $ 6,200 $ 6,210 $ 155,002 $ 155,250 3.15 % $ 149,822 $ 1.88 $ 1.88 $ 1.88 Series B, 7.125% issued August 2019 (C) 11,261 11,300 281,518 282,500 3.15 % 272,654 1.78 1.78 1.78 Series C, 6.375% issued February 2020 (C) 15,903 16,100 397,584 402,500 3.15 % 385,289 1.59 1.59 1.60 Series D, 7.00% issued September 2021 (D) 18,600 18,600 465,000 465,000 3.15 % 449,489 1.75 0.72 — Total $ 51,964 $ 52,210 $ 1,299,104 $ 1,305,250 $ 1,257,254 $ 7.00 $ 5.97 $ 5.26 (A) Each series has a liquidation preference 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: Per Share Declaration Date Payment Date Quarterly Dividend Total Amounts Distributed (millions) March 24, 2021 April 2021 $ 0.20 $ 82.9 June 16, 2021 August 2021 0.20 93.3 August 23, 2021 October 2021 0.25 116.6 December 15, 2021 January 2022 0.25 116.7 March 21, 2022 April 2022 0.25 116.7 June 17, 2022 August 2021 0.25 116.7 September 22, 2022 October 2022 0.25 118.4 December 15, 2022 January 2023 0.25 118.6 |
Schedule of Warrants | The table below summarizes the 2020 Warrants: Number of Warrants Adjusted Weighted Average Exercise Price Initial Adjusted (A) December 31, 2021 43.4 46.2 $ 6.49 Granted — 2.4 6.23 Exercised (21.0) (23.0) 6.30 Expired — — — December 31, 2022 22.4 25.6 6.06 (B) (A) Reflects the incremental number of additional common stock issuable upon exercise of warrants in accordance with the warrant agreement. (B) Reflects a reduction in weighted average exercise price due to anti-dilution adjustments effective for dividends in excess of $0.10 a share. |
Summary of Outstanding Options | The following table summarizes outstanding options for the periods presented: December 31, 2022 2021 Held by the Former Manager 21,471,990 19,877,843 Issued to the Former Manager and subsequently assigned to certain of the Former Manager’s employees — 1,594,147 Issued to the independent directors 5,000 7,000 Total 21,476,990 21,478,990 The following table summarizes outstanding options as of December 31, 2022. The last sales price on the New York Stock Exchange for Rithm Capital’s common stock for the year ended December 31, 2022 was $8.17 per share. Recipient Date of Grant/ Exercise (A) Number of Unexercised Options Options Exercisable as of December 31, 2022 Weighted Average Exercise Price (B) Intrinsic Value of Exercisable Options as of December 31, 2022 Directors Various 5,000 5,000 $ 12.55 $ — Former Manager 2017 1,130,916 1,130,916 13.43 — Former Manager 2018 5,320,000 5,320,000 16.15 — Former Manager 2019 6,351,000 6,351,000 15.54 — Former Manager 2020 1,619,739 1,619,739 16.88 — Former Manager 2021 7,050,335 4,386,062 9.92 — Outstanding 21,476,990 18,812,717 13.84 (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 related to outstanding options for the periods presented: Number of Options Weighted Average Exercise Price December 31, 2020 14,428,655 Granted 7,051,335 $ 10.31 Exercised — — Expired (1,000) 12.36 December 31, 2021 21,478,990 Granted — — Exercised — — Expired (2,000) 13.20 December 31, 2022 21,476,990 See table above |
Schedule of Restricted Stock Awards | The following table summarizes the grants, vesting and forfeitures of RSAs: Shares Weighted Average Grant Date Fair Market Value December 31, 2021 — $ — Granted 578,034 8.65 Vested — — Forfeited — — December 31, 2022 578,034 $ 8.65 |
Schedule of Basic and Diluted Earnings Per Share | The following table summarizes the basic and diluted earnings per share calculations: Year Ended December 31, 2022 2021 2020 Net income (loss) $ 983,285 $ 805,582 $ (1,357,684) Noncontrolling interests in income of consolidated subsidiaries 28,766 33,356 52,674 Dividends on preferred stock 89,726 66,744 54,295 Net income (loss) attributable to common stockholders $ 864,793 $ 705,482 $ (1,464,653) Basic weighted average shares of common stock outstanding 468,836,718 451,276,742 415,513,187 Dilutive effect of stock options, restricted stock, and common stock purchase warrants (A) 12,799,407 16,388,264 — Diluted weighted average shares of common stock outstanding 481,636,125 467,665,006 415,513,187 Basic earnings (loss) per share attributable to common stockholders $ 1.84 $ 1.56 $ (3.52) Diluted earnings (loss) per share attributable to common stockholders $ 1.80 $ 1.51 $ (3.52) (A) Stock options, restricted stock, 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 a loss has been recorded because they would have been anti-dilutive for the period presented. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The Company excluded the following weighted-average potential common shares from the calculation of diluted net income (loss) per share during the applicable periods because their inclusion would have been anti-dilutive: Year Ended December 31, 2022 2021 2020 Stock options, restricted stock, and common stock purchase warrants — — 7,328,961 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Income tax (benefit) expense consists of the following: Year Ended December 31, 2022 2021 2020 Current: Federal $ 4,253 $ 5,556 $ (2,197) State and local 4,096 1,470 4,084 Total current income tax expense 8,349 7,026 1,887 Deferred: Federal 227,825 130,696 17,516 State and local 43,342 20,504 (2,487) Total deferred income tax expense 271,167 151,200 15,029 Total income tax expense $ 279,516 $ 158,226 $ 16,916 |
Schedule of Reported Provision for Income Taxes and the U.S. Federal Statutory Rate | The difference between Rithm Capital’s reported provision for income taxes and the U.S. federal statutory rate of 21.0% is as follows: December 31, 2022 2021 2020 Provision at the statutory rate 21.00 % 21.00 % 21.00 % Non-taxable REIT income (3.36) % (7.38) % (26.44) % State and local taxes 4.05 % 3.86 % 3.70 % Return to provision — % (1.10) % 0.12 % Other 0.44 % 0.05 % 0.45 % Total provision 22.13 % 16.43 % (1.17) % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liability are presented below: December 31, 2022 2021 Deferred tax assets: Net operating losses and tax credit carryforwards (A) $ 23,627 $ 76,642 Basis differences related to assets and investments 32,447 85,104 Goodwill 26,289 30,485 Accrued expenses 44,572 20,171 Other 1,573 4,632 Total deferred tax assets 128,508 217,034 Less: valuation allowance — — Net deferred tax assets $ 128,508 $ 217,034 Deferred tax liabilities: Mortgage servicing rights $ (791,691) $ (594,801) Basis differences related to assets and investments (26,832) (21,672) Fixed asset depreciation (19,302) (14,495) Unrealized mark to market — (26,021) Other (2,538) (735) Total deferred tax (liability) $ (840,363) $ (657,724) Net deferred tax assets (liability) $ (711,855) $ (440,690) (A) As of December 31, 2022, Rithm Capital’s TRSs had approximately $50.0 million of net operating loss carryforwards for federal and state income tax purposes which may be available to offset future taxable income, if and when it arises. Approximately, $12.8 million of federal net operating losses are subject to an annual Internal Revenue Code Section 382 limitation. The federal and state net operating loss carryforwards will begin to expire between 2027 and 2041. The utilization of the net operating loss carryforwards to reduce future income taxes will depend on the TRSs ability to generate sufficient taxable income prior to the expiration of the carryforward period. |
Schedule of Taxable Common Stock Distributions | Common stock distributions were taxable as follows: Year Dividends Ordinary Long-Term Return 2022 (A) $ 0.41 41.47 % — % 58.53 % 2021 (B) $ 0.50 58.84 % — % 41.16 % 2020 (C) $ 0.62 78.01 % — % 21.99 % (A) The entire $0.25 per share dividend declared in December 2022 and paid in January 2023 is treated as received by stockholders in 2023. (B) The entire $0.25 per share dividend declared in December 2021 and paid in January 2022 is treated as received by stockholders in 2022. (C) The entire $0.20 per share dividend declared in December 2020 and paid in January 2021 is treated as received by stockholders in 2021. Series A Preferred stock distributions were as follows: Year Dividends Ordinary Long-Term Return 2022 (A) $ 1.88 100 % — % — % 2021 (B) $ 1.88 100 % — % — % 2020 (C) $ 1.88 100 % — % — % (A) The entire $0.47 per share dividend declared in December 2022 and paid in January 2023 is treated as received by stockholders in 2023. (B) The entire $0.47 per share dividend declared in December 2021 and paid in January 2022 is treated as received by stockholders in 2022. (C) The entire $0.47 per share dividend declared in December 2020 and paid in January 2021 is treated as received by stockholders in 2021. Series B Preferred stock distributions were as follows: Year Dividends Ordinary Long-Term Return 2022 (A) $ 1.78 100 % — % — % 2021 (B) $ 1.78 100 % — % — % 2020 (C) $ 1.78 100 % — % — % (A) The entire $0.45 per share dividend declared in December 2022 and paid in January 2023 is treated as received by stockholders in 2023. (B) The entire $0.45 per share dividend declared in December 2021 and paid in January 2022 is treated as received by stockholders in 2022. (C) The entire $0.45 per share dividend declared in December 2020 and paid in January 2021 is treated as received by stockholders in 2021. Series C Preferred stock distributions were as follows: Year Dividends Ordinary Long-Term Return 2022 (A) $ 1.59 100 % — % — % 2021 (B) $ 1.59 100 % — % — % 2020 (C) $ 1.20 100 % — % — % (A) The entire $0.40 per share dividend declared in December 2022 and paid in January 2023 is treated as received by stockholders in 2023. (B) The entire $0.40 per share dividend declared in December 2021 and paid in January 2022 is treated as received by stockholders in 2022. (C) The entire $0.40 per share dividend declared in December 2020 and paid in January 2021 is treated as received by stockholders in 2021. Series D Preferred stock distributions were as follows: Year Dividends Ordinary Long-Term Return 2022 (A) $ 1.75 100 % — % — % 2021 (B) $ 0.28 100 % — % — % (A) The entire $0.44 per share dividend declared in December 2022 and paid in January 2023 is treated as received by stockholders in 2023. (B) The entire $0.28 per share dividend declared in December 2021 and paid in January 2022 is treated as received by stockholders in 2022. |
BUSINESS AND ORGANIZATION - Nar
BUSINESS AND ORGANIZATION - Narrative (Details) $ in Millions | Jun. 17, 2022 USD ($) |
Manager | |
Related Party Transaction [Line Items] | |
Payment for management fee | $ 400 |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Feb. 29, 2020 | Aug. 31, 2019 | Jul. 31, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash and Cash Equivalents [Line Items] | |||||
Property acquired, useful life | 15 years | ||||
Goodwill impairment loss | $ 0 | $ 0 | |||
Intangible asset impairment | $ 0 | ||||
7.50% Series A 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 Preferred Stock | |||||
Cash and Cash Equivalents [Line Items] | |||||
Interest rate | 6.375% | 6.375% |
BUSINESS ACQUISITIONS - Schedul
BUSINESS ACQUISITIONS - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 20, 2021 | Aug. 23, 2021 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Liabilities | |||||
Goodwill (bargain purchase gain) | $ 49.7 | ||||
Maximum | Customer relationships | |||||
Liabilities | |||||
Estimated Useful Life | 9 years | ||||
Maximum | Trademarks/trade names | |||||
Liabilities | |||||
Estimated Useful Life | 5 years | ||||
Total Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Total Consideration | 2,953.1 | ||||
Assets | |||||
Mortgage servicing rights, at fair value | 1,507.5 | ||||
Residential mortgage loans, held-for-sale, at fair value | 7,685.7 | ||||
Mortgage loans receivable, at fair value | 1,505.6 | ||||
Residential mortgage loans subject to repurchase | 666.8 | ||||
Cash and cash equivalents | 489.1 | ||||
Restricted cash | 30.6 | ||||
Servicer advance receivable | 108.3 | ||||
Intangible assets | 97.8 | ||||
Other assets | 624.2 | ||||
Total Assets Acquired | 12,715.6 | ||||
Liabilities | |||||
Secured financing agreements | 7,090.6 | ||||
Secured notes and bonds payable | 1,121.8 | ||||
Residential mortgage loans repurchase liability | 666.8 | ||||
Accrued expenses and other liabilities | 933 | ||||
Total Liabilities Assumed | 9,812.2 | ||||
Net Assets | 2,903.4 | ||||
Caliber Home Loans Inc | |||||
Business Acquisition [Line Items] | |||||
Total Consideration | $ 1,318.5 | 1,318.5 | |||
Assets | |||||
Mortgage servicing rights, at fair value | 1,507.5 | 1,507.5 | |||
Residential mortgage loans, held-for-sale, at fair value | 7,685.7 | 7,685.7 | |||
Mortgage loans receivable, at fair value | 0 | ||||
Residential mortgage loans subject to repurchase | 666.8 | 666.8 | |||
Cash and cash equivalents | 472.7 | 472.7 | |||
Restricted cash | 30.6 | 30.6 | |||
Servicer advance receivable | 108.3 | 108.3 | |||
Intangible assets | 41 | 41 | |||
Other assets | 605.4 | 609.7 | |||
Total Assets Acquired | 11,118 | 11,122.3 | |||
Liabilities | |||||
Secured financing agreements | 7,090.6 | 7,090.6 | |||
Secured notes and bonds payable | 1,121.8 | 1,121.8 | |||
Residential mortgage loans repurchase liability | 666.8 | 666.8 | |||
Accrued expenses and other liabilities | 917 | 918.6 | |||
Total Liabilities Assumed | 9,796.2 | 9,797.8 | |||
Net Assets | $ 1,321.8 | 1,324.5 | |||
Goodwill (bargain purchase gain) | $ (6) | ||||
Finite-lived intangible assets, useful life | 6 years 7 months 6 days | 7 years | |||
Caliber Home Loans Inc | Trademarks/trade names | |||||
Liabilities | |||||
Estimated Useful Life | 1 year | ||||
Genesis | |||||
Business Acquisition [Line Items] | |||||
Total Consideration | $ 1,634.6 | ||||
Assets | |||||
Mortgage servicing rights, at fair value | 0 | ||||
Residential mortgage loans, held-for-sale, at fair value | 0 | ||||
Mortgage loans receivable, at fair value | 1,505.6 | ||||
Residential mortgage loans subject to repurchase | 0 | ||||
Cash and cash equivalents | 16.4 | ||||
Restricted cash | 0 | ||||
Servicer advance receivable | 0 | ||||
Intangible assets | 56.8 | ||||
Other assets | 14.5 | ||||
Total Assets Acquired | 1,593.3 | ||||
Liabilities | |||||
Secured financing agreements | 0 | ||||
Secured notes and bonds payable | 0 | ||||
Residential mortgage loans repurchase liability | 0 | ||||
Accrued expenses and other liabilities | 14.4 | ||||
Total Liabilities Assumed | 14.4 | ||||
Net Assets | 1,578.9 | ||||
Goodwill (bargain purchase gain) | $ 55.7 | ||||
Finite-lived intangible assets, useful life | 8 years 6 months | ||||
Genesis | Customer relationships | |||||
Liabilities | |||||
Estimated Useful Life | 9 years | ||||
Genesis | Trademarks/trade names | |||||
Liabilities | |||||
Estimated Useful Life | 5 years |
BUSINESS ACQUISITIONS - Narrati
BUSINESS ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 20, 2021 | Aug. 23, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||||||
Business Combination, Bargain Purchase, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (loss), net | ||||||
Goodwill | $ 85,199 | $ 85,199 | $ 85,199 | $ 29,468 | |||
Caliber Home Loans Inc | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration | $ 1,318,000 | ||||||
Bargain purchase gain | $ 3,300 | $ 6,000 | $ 3,300 | 6,000 | |||
Goodwill (bargain purchase gain) | $ 2,700 | ||||||
Revenue of acquiree | 659,800 | ||||||
Net income of acquiree | 25,900 | ||||||
Transition, integration, relocation, and training costs incurred | $ 9,600 | ||||||
Finite-lived intangible assets, useful life | 6 years 7 months 6 days | 7 years | |||||
Genesis | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration | $ 1,630,000 | ||||||
Revenue of acquiree | $ 4,200 | ||||||
Net income of acquiree | 1,400 | ||||||
Transition, integration, relocation, and training costs incurred | $ 6,700 | ||||||
Finite-lived intangible assets, useful life | 8 years 6 months | ||||||
Equity interest acquired | 100% | ||||||
Goodwill | $ 55,700 |
BUSINESS ACQUISITIONS - Summary
BUSINESS ACQUISITIONS - Summary of Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Dec. 20, 2021 | Aug. 23, 2021 |
Caliber Home Loans Inc | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 41,028 | |
Caliber Home Loans Inc | Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 7 years | |
Amount | $ 38,545 | |
Caliber Home Loans Inc | Trademarks/trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 1 year | |
Amount | $ 2,483 | |
Genesis | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 56,100 | |
Genesis | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 9 years | |
Amount | $ 44,700 | |
Genesis | Trademarks/trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 5 years | |
Amount | $ 5,900 | |
Genesis | License | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 5,500 |
BUSINESS ACQUISITIONS - Sched_2
BUSINESS ACQUISITIONS - Schedule of Measurement Period Adjustments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Aug. 23, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | |
Caliber Home Loans Inc | |||||
Business Acquisition [Line Items] | |||||
Total Consideration | $ 1,318.5 | $ 1,318.5 | |||
Assets | |||||
Mortgage servicing rights, at fair value | $ 1,507.5 | 1,507.5 | 1,507.5 | ||
Residential mortgage loans, held-for-sale, at fair value | 7,685.7 | 7,685.7 | 7,685.7 | ||
Residential mortgage loans subject to repurchase | 666.8 | 666.8 | 666.8 | ||
Cash and cash equivalents | 472.7 | 472.7 | 472.7 | ||
Restricted cash | 30.6 | 30.6 | 30.6 | ||
Servicer advance receivable | 108.3 | 108.3 | 108.3 | ||
Intangible assets | 41 | 41 | 41 | ||
Other assets | 609.7 | 605.4 | 609.7 | ||
Other assets | 4.3 | ||||
Total Assets Acquired | 11,122.3 | 11,118 | 11,122.3 | ||
Total Assets Acquired | 4.3 | ||||
Liabilities | |||||
Secured financing agreements | 7,090.6 | 7,090.6 | 7,090.6 | ||
Secured notes and bonds payable | 1,121.8 | 1,121.8 | 1,121.8 | ||
Residential mortgage loans repurchase liability | 666.8 | 666.8 | 666.8 | ||
Accrued expenses and other liabilities | 918.6 | 917 | 918.6 | ||
Accrued expenses and other liabilities | 1.6 | ||||
Total Liabilities Assumed | 9,797.8 | 9,796.2 | 9,797.8 | ||
Total Liabilities Assumed | 1.6 | ||||
Net Assets | 1,324.5 | 1,321.8 | 1,324.5 | ||
Net Assets | 2.7 | ||||
Goodwill (bargain purchase gain) | $ (3.3) | $ (6) | $ (3.3) | (6) | |
Goodwill (bargain purchase gain) | (2.7) | ||||
Genesis | |||||
Business Acquisition [Line Items] | |||||
Total Consideration | 1,634.6 | ||||
Assets | |||||
Mortgage servicing rights, at fair value | 0 | 0 | |||
Residential mortgage loans, held-for-sale, at fair value | 0 | 0 | |||
Residential mortgage loans subject to repurchase | 0 | 0 | |||
Cash and cash equivalents | 16.4 | 16.4 | |||
Restricted cash | 0 | 0 | |||
Servicer advance receivable | 0 | 0 | |||
Intangible assets | 56.8 | 56.8 | |||
Other assets | 14.5 | 14.5 | |||
Total Assets Acquired | 1,593.3 | 1,593.3 | |||
Liabilities | |||||
Secured financing agreements | 0 | 0 | |||
Secured notes and bonds payable | 0 | 0 | |||
Residential mortgage loans repurchase liability | 0 | 0 | |||
Accrued expenses and other liabilities | 14.4 | 14.4 | |||
Total Liabilities Assumed | 14.4 | 14.4 | |||
Net Assets | $ 1,578.9 | $ 1,578.9 |
BUSINESS ACQUISITIONS - Sched_3
BUSINESS ACQUISITIONS - Schedule of Unaudited Supplemental Pro Forma Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Caliber Home Loans Inc | ||
Pro Forma (in millions) | ||
Revenues | $ 5,422.7 | $ 4,453.4 |
Income (loss) before income taxes | 1,258.6 | (529.9) |
Genesis | ||
Pro Forma (in millions) | ||
Revenues | 3,643.4 | 1,693 |
Income (loss) before income taxes | $ 981.8 | $ (1,316.1) |
SEGMENT REPORTING - Segment Fin
SEGMENT REPORTING - Segment Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ 1,831,964 | $ 1,559,554 | $ 1,642,272 | |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(631,120)) | 732,750 | (575,353) | (2,168,909) | |
Servicing revenue, net | 2,564,714 | 984,201 | (526,637) | |
Interest income | 1,075,981 | 810,896 | 794,965 | |
Gain on originated residential mortgage loans, held-for-sale, net | 1,086,232 | 1,826,909 | 1,399,092 | |
Total revenues | 4,726,927 | 3,622,006 | 1,667,420 | |
Interest expense | 791,001 | 497,308 | 584,469 | |
G&A and other | 2,553,048 | 2,119,764 | 1,209,221 | |
Total operating expenses | 3,344,049 | 2,617,072 | 1,793,690 | |
Change in fair value of investments | 1,108,290 | 11,723 | (148,758) | |
Gain (loss) on settlement of investments, net | (1,359,679) | (234,561) | (930,131) | |
Other income (loss), net | 131,312 | 181,712 | (135,609) | |
Total other income (loss) | (120,077) | (41,126) | (1,214,498) | |
Income (loss) before income taxes | 1,262,801 | 963,808 | (1,340,768) | |
Income tax (benefit) expense | 279,516 | 158,226 | 16,916 | |
Net income (loss) | 983,285 | 805,582 | (1,357,684) | |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 28,766 | 33,356 | 52,674 | |
Dividends on preferred stock | 89,726 | 66,744 | 54,295 | |
Net income (loss) attributable to common stockholders - basic | 864,793 | 705,482 | (1,464,653) | |
Investments | 24,428,594 | 31,564,175 | ||
Cash and cash equivalents | 1,336,508 | 1,332,575 | ||
Restricted cash | 281,126 | 195,867 | ||
Other assets | 6,347,909 | 6,564,374 | ||
Goodwill | 85,199 | 85,199 | 29,468 | |
Total assets | 32,479,336 | 39,742,190 | ||
Debt | 21,901,735 | 29,780,987 | ||
Other liabilities | 3,567,533 | 3,291,823 | ||
Total liabilities | 25,469,268 | 33,072,810 | ||
Total Equity | 7,010,068 | 6,669,380 | 5,429,684 | $ 7,236,260 |
Noncontrolling interests in equity of consolidated subsidiaries | 67,067 | 65,348 | ||
Total Rithm Capital stockholders’ equity | 6,943,001 | 6,604,032 | ||
Investments in equity method investees | 72,437 | 105,592 | ||
Mortgage Servicing Rights | ||||
Segment Reporting Information [Line Items] | ||||
Realization of cash flows | (631,120) | (1,192,646) | (1,583,628) | |
Servicing revenue, net | 2,564,714 | 984,201 | (526,637) | |
Origination | ||||
Segment Reporting Information [Line Items] | ||||
Investments | 2,066,798 | 8,829,598 | ||
Cash and cash equivalents | 163,452 | 587,685 | ||
Restricted cash | 24,316 | 32,803 | ||
Other assets | 224,705 | 969,338 | ||
Goodwill | 11,836 | 11,836 | 11,836 | |
Total assets | 2,491,107 | 10,431,260 | ||
Debt | 1,909,030 | 8,251,702 | ||
Other liabilities | 214,148 | 425,582 | ||
Total liabilities | 2,123,178 | 8,677,284 | ||
Total Equity | 367,929 | 1,753,976 | ||
Noncontrolling interests in equity of consolidated subsidiaries | 12,437 | 15,683 | ||
Total Rithm Capital stockholders’ equity | 355,492 | 1,738,293 | ||
Investments in equity method investees | 0 | 0 | ||
Servicing | ||||
Segment Reporting Information [Line Items] | ||||
Realization of cash flows | (414,017) | (783,349) | (792,680) | |
Servicing revenue, net | 2,163,169 | 712,233 | (203,148) | |
Investments | 7,304,637 | 5,439,613 | ||
Cash and cash equivalents | 440,739 | 250,294 | ||
Restricted cash | 136,933 | 95,785 | ||
Other assets | 2,204,127 | 2,728,253 | ||
Goodwill | 12,540 | 12,540 | 12,540 | |
Total assets | 10,098,976 | 8,526,485 | ||
Debt | 4,751,454 | 4,131,297 | ||
Other liabilities | 2,081,536 | 2,323,315 | ||
Total liabilities | 6,832,990 | 6,454,612 | ||
Total Equity | 3,265,986 | 2,071,873 | ||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | ||
Total Rithm Capital stockholders’ equity | 3,265,986 | 2,071,873 | ||
Investments in equity method investees | 0 | 0 | ||
MSR Related Investments | ||||
Segment Reporting Information [Line Items] | ||||
Investments | 2,091,507 | 2,776,078 | ||
Cash and cash equivalents | 276,690 | 288,900 | ||
Restricted cash | 69,347 | 27,182 | ||
Other assets | 3,000,911 | 1,926,482 | ||
Goodwill | 5,092 | 5,092 | 5,092 | |
Total assets | 5,443,547 | 5,023,734 | ||
Debt | 3,272,945 | 3,561,342 | ||
Other liabilities | 35,052 | 182,460 | ||
Total liabilities | 3,307,997 | 3,743,802 | ||
Total Equity | 2,135,550 | 1,279,932 | ||
Noncontrolling interests in equity of consolidated subsidiaries | 12,193 | 10,251 | ||
Total Rithm Capital stockholders’ equity | 2,123,357 | 1,269,681 | ||
Investments in equity method investees | 72,437 | 105,592 | ||
Origination and Servicing | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 1,831,964 | 1,559,554 | 1,642,272 | |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(631,120)) | 732,750 | (575,353) | (2,168,909) | |
Servicing revenue, net | 2,564,714 | 984,201 | (526,637) | |
Interest income | 431,913 | 257,844 | 138,574 | |
Gain on originated residential mortgage loans, held-for-sale, net | 1,129,787 | 1,781,204 | 1,400,552 | |
Total revenues | 4,126,414 | 3,023,249 | 1,012,489 | |
Interest expense | 432,905 | 323,926 | 279,790 | |
G&A and other | 1,918,120 | 1,892,423 | 1,018,488 | |
Total operating expenses | 2,351,025 | 2,216,349 | 1,298,278 | |
Change in fair value of investments | (13,198) | (22,336) | (18,958) | |
Gain (loss) on settlement of investments, net | (7,261) | (39,882) | (16,713) | |
Other income (loss), net | 49,658 | 82,443 | 38,385 | |
Total other income (loss) | 29,199 | 20,225 | 2,714 | |
Income (loss) before income taxes | 1,804,588 | 827,125 | (283,075) | |
Income tax (benefit) expense | 367,996 | 106,564 | 81,352 | |
Net income (loss) | 1,436,592 | 720,561 | (364,427) | |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 5,566 | 9,498 | 16,516 | |
Dividends on preferred stock | 0 | 0 | 0 | |
Net income (loss) attributable to common stockholders - basic | 1,431,026 | 711,063 | (380,943) | |
Investments | 11,462,942 | 17,045,289 | ||
Cash and cash equivalents | 880,881 | 1,126,879 | ||
Restricted cash | 230,596 | 155,770 | ||
Other assets | 5,429,743 | 5,624,073 | ||
Goodwill | 29,468 | 29,468 | ||
Total assets | 18,033,630 | 23,981,479 | ||
Debt | 9,933,429 | 15,944,341 | ||
Other liabilities | 2,330,736 | 2,931,357 | ||
Total liabilities | 12,264,165 | 18,875,698 | ||
Total Equity | 5,769,465 | 5,105,781 | ||
Noncontrolling interests in equity of consolidated subsidiaries | 24,630 | 25,934 | ||
Total Rithm Capital stockholders’ equity | 5,744,835 | 5,079,847 | ||
Investments in equity method investees | 72,437 | 105,592 | ||
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 | |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(631,120)) | 0 | 0 | 0 | |
Servicing revenue, net | 0 | 0 | 0 | |
Interest income | 298,544 | 293,989 | 355,916 | |
Gain on originated residential mortgage loans, held-for-sale, net | 0 | 9,878 | (13,398) | |
Total revenues | 298,544 | 303,867 | 342,518 | |
Interest expense | 166,937 | 47,037 | 157,371 | |
G&A and other | 3,720 | 4,620 | 7,639 | |
Total operating expenses | 170,657 | 51,657 | 165,010 | |
Change in fair value of investments | 1,055,346 | (101,566) | (25,012) | |
Gain (loss) on settlement of investments, net | (1,382,605) | (254,672) | (828,525) | |
Other income (loss), net | (9,174) | 3,515 | (11,071) | |
Total other income (loss) | (336,433) | (352,723) | (864,608) | |
Income (loss) before income taxes | (208,546) | (100,513) | (687,100) | |
Income tax (benefit) expense | 0 | 0 | 0 | |
Net income (loss) | (208,546) | (100,513) | (687,100) | |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | |
Dividends on preferred stock | 0 | 0 | 0 | |
Net income (loss) attributable to common stockholders - basic | (208,546) | (100,513) | (687,100) | |
Investments | 8,289,277 | 9,396,539 | ||
Cash and cash equivalents | 381,456 | 197,559 | ||
Restricted cash | 4,604 | 15,342 | ||
Other assets | 248,283 | 389,309 | ||
Goodwill | 0 | 0 | ||
Total assets | 8,923,620 | 9,998,749 | ||
Debt | 7,430,463 | 9,040,309 | ||
Other liabilities | 776,785 | 6,991 | ||
Total liabilities | 8,207,248 | 9,047,300 | ||
Total Equity | 716,372 | 951,449 | ||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | ||
Total Rithm Capital stockholders’ equity | 716,372 | 951,449 | ||
Investments in equity method investees | 0 | 0 | ||
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 | |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(631,120)) | 0 | 0 | 0 | |
Servicing revenue, net | 0 | 0 | 0 | |
Interest income | 89,476 | 139,658 | 175,963 | |
Gain on originated residential mortgage loans, held-for-sale, net | (43,555) | 35,827 | 11,938 | |
Total revenues | 45,921 | 175,485 | 187,901 | |
Interest expense | 78,706 | 76,273 | 87,958 | |
G&A and other | 60,682 | 90,377 | 62,900 | |
Total operating expenses | 139,388 | 166,650 | 150,858 | |
Change in fair value of investments | 37,102 | 155,758 | (107,604) | |
Gain (loss) on settlement of investments, net | 67,465 | 60,164 | (19,655) | |
Other income (loss), net | 76,895 | 94,765 | (113,428) | |
Total other income (loss) | 181,462 | 310,687 | (240,687) | |
Income (loss) before income taxes | 87,995 | 319,522 | (203,644) | |
Income tax (benefit) expense | (5,333) | 51,579 | (65,215) | |
Net income (loss) | 93,328 | 267,943 | (138,429) | |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | |
Dividends on preferred stock | 0 | 0 | 0 | |
Net income (loss) attributable to common stockholders - basic | 93,328 | 267,943 | (138,429) | |
Investments | 2,248,591 | 3,099,294 | ||
Cash and cash equivalents | 361 | 22 | ||
Restricted cash | 4,627 | 2,482 | ||
Other assets | 324,119 | 125,647 | ||
Goodwill | 0 | 0 | ||
Total assets | 2,577,698 | 3,227,445 | ||
Debt | 1,937,395 | 2,440,693 | ||
Other liabilities | 272,484 | 179,260 | ||
Total liabilities | 2,209,879 | 2,619,953 | ||
Total Equity | 367,819 | 607,492 | ||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | ||
Total Rithm Capital stockholders’ equity | 367,819 | 607,492 | ||
Investments in equity method investees | 0 | 0 | ||
Consumer Loans | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 0 | 0 | 0 | |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(631,120)) | 0 | 0 | 0 | |
Servicing revenue, net | 0 | 0 | 0 | |
Interest income | 68,788 | 93,847 | 124,512 | |
Gain on originated residential mortgage loans, held-for-sale, net | 0 | 0 | 0 | |
Total revenues | 68,788 | 93,847 | 124,512 | |
Interest expense | 8,066 | 10,999 | 22,587 | |
G&A and other | 8,277 | 10,856 | 10,301 | |
Total operating expenses | 16,343 | 21,855 | 32,888 | |
Change in fair value of investments | (36,739) | (20,133) | 2,816 | |
Gain (loss) on settlement of investments, net | 0 | 0 | (4,183) | |
Other income (loss), net | 26,548 | 1,935 | (8,386) | |
Total other income (loss) | (10,191) | (18,198) | (9,753) | |
Income (loss) before income taxes | 42,254 | 53,794 | 81,871 | |
Income tax (benefit) expense | 33 | 83 | 779 | |
Net income (loss) | 42,221 | 53,711 | 81,092 | |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 23,200 | 23,858 | 36,158 | |
Dividends on preferred stock | 0 | 0 | 0 | |
Net income (loss) attributable to common stockholders - basic | 19,021 | 29,853 | 44,934 | |
Investments | 363,756 | 507,291 | ||
Cash and cash equivalents | 605 | 1,437 | ||
Restricted cash | 15,930 | 21,961 | ||
Other assets | 29,375 | 39,662 | ||
Goodwill | 0 | 0 | ||
Total assets | 409,666 | 570,351 | ||
Debt | 299,498 | 460,314 | ||
Other liabilities | 1,176 | 583 | ||
Total liabilities | 300,674 | 460,897 | ||
Total Equity | 108,992 | 109,454 | ||
Noncontrolling interests in equity of consolidated subsidiaries | 42,437 | 39,414 | ||
Total Rithm Capital stockholders’ equity | 66,555 | 70,040 | ||
Investments in equity method investees | 0 | 0 | ||
Mortgage Loans Receivable | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 0 | 0 | 0 | |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(631,120)) | 0 | 0 | 0 | |
Servicing revenue, net | 0 | 0 | 0 | |
Interest income | 166,479 | 4,219 | 0 | |
Gain on originated residential mortgage loans, held-for-sale, net | 0 | 0 | 0 | |
Total revenues | 166,479 | 4,219 | 0 | |
Interest expense | 64,188 | 1,000 | 0 | |
G&A and other | 64,277 | 1,802 | 0 | |
Total operating expenses | 128,465 | 2,802 | 0 | |
Change in fair value of investments | 65,779 | 0 | 0 | |
Gain (loss) on settlement of investments, net | (37,345) | 0 | 0 | |
Other income (loss), net | 12,243 | 0 | 0 | |
Total other income (loss) | 40,677 | 0 | 0 | |
Income (loss) before income taxes | 78,691 | 1,417 | 0 | |
Income tax (benefit) expense | (7,792) | 0 | 0 | |
Net income (loss) | 86,483 | 1,417 | 0 | |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | |
Dividends on preferred stock | 0 | 0 | 0 | |
Net income (loss) attributable to common stockholders - basic | 86,483 | 1,417 | 0 | |
Investments | 2,064,028 | 1,515,762 | ||
Cash and cash equivalents | 52,441 | 5,653 | ||
Restricted cash | 25,369 | 0 | ||
Other assets | 170,129 | 106,615 | ||
Goodwill | 55,731 | 55,731 | ||
Total assets | 2,367,698 | 1,683,761 | ||
Debt | 1,733,579 | 1,252,660 | ||
Other liabilities | 25,818 | 8,541 | ||
Total liabilities | 1,759,397 | 1,261,201 | ||
Total Equity | 608,301 | 422,560 | ||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | ||
Total Rithm Capital stockholders’ equity | 608,301 | 422,560 | ||
Investments in equity method investees | 0 | 0 | ||
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 0 | 0 | 0 | |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(631,120)) | 0 | 0 | 0 | |
Servicing revenue, net | 0 | 0 | 0 | |
Interest income | 20,781 | 21,339 | 0 | |
Gain on originated residential mortgage loans, held-for-sale, net | 0 | 0 | 0 | |
Total revenues | 20,781 | 21,339 | 0 | |
Interest expense | 40,199 | 38,073 | 36,763 | |
G&A and other | 497,972 | 119,686 | 109,893 | |
Total operating expenses | 538,171 | 157,759 | 146,656 | |
Change in fair value of investments | 0 | 0 | 0 | |
Gain (loss) on settlement of investments, net | 67 | (171) | (61,055) | |
Other income (loss), net | (24,858) | (946) | (41,109) | |
Total other income (loss) | (24,791) | (1,117) | (102,164) | |
Income (loss) before income taxes | (542,181) | (137,537) | (248,820) | |
Income tax (benefit) expense | (75,388) | 0 | 0 | |
Net income (loss) | (466,793) | (137,537) | (248,820) | |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | |
Dividends on preferred stock | 89,726 | 66,744 | 54,295 | |
Net income (loss) attributable to common stockholders - basic | (556,519) | (204,281) | (303,115) | |
Investments | 0 | 0 | ||
Cash and cash equivalents | 20,764 | 1,025 | ||
Restricted cash | 0 | 312 | ||
Other assets | 146,260 | 279,068 | ||
Goodwill | 0 | 0 | ||
Total assets | 167,024 | 280,405 | ||
Debt | 567,371 | 642,670 | ||
Other liabilities | 160,534 | 165,091 | ||
Total liabilities | 727,905 | 807,761 | ||
Total Equity | (560,881) | (527,356) | ||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | ||
Total Rithm Capital stockholders’ equity | (560,881) | (527,356) | ||
Investments in equity method investees | 0 | 0 | ||
Operating Segments | Origination | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 0 | (4,089) | (11,519) | |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(631,120)) | 0 | 0 | 0 | |
Servicing revenue, net | 0 | (4,089) | (11,519) | |
Interest income | 173,947 | 188,053 | 63,160 | |
Gain on originated residential mortgage loans, held-for-sale, net | 1,039,939 | 1,704,363 | 1,289,584 | |
Total revenues | 1,213,886 | 1,888,327 | 1,341,225 | |
Interest expense | 123,350 | 121,392 | 45,676 | |
G&A and other | 1,219,271 | 1,223,668 | 494,398 | |
Total operating expenses | 1,342,621 | 1,345,060 | 540,074 | |
Change in fair value of investments | 0 | 0 | 0 | |
Gain (loss) on settlement of investments, net | 0 | 0 | 0 | |
Other income (loss), net | 6,256 | 2,346 | 433 | |
Total other income (loss) | 6,256 | 2,346 | 433 | |
Income (loss) before income taxes | (122,479) | 545,613 | 801,584 | |
Income tax (benefit) expense | (30,397) | 115,289 | 211,359 | |
Net income (loss) | (92,082) | 430,324 | 590,225 | |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 2,716 | 11,298 | 15,625 | |
Dividends on preferred stock | 0 | 0 | 0 | |
Net income (loss) attributable to common stockholders - basic | (94,798) | 419,026 | 574,600 | |
Operating Segments | Servicing | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 1,431,947 | 1,025,888 | 891,191 | |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(631,120)) | 731,222 | (313,655) | (1,094,339) | |
Servicing revenue, net | 2,163,169 | 712,233 | (203,148) | |
Interest income | 152,687 | 20,629 | 16,897 | |
Gain on originated residential mortgage loans, held-for-sale, net | 87,343 | 101,764 | 47,277 | |
Total revenues | 2,403,199 | 834,626 | (138,974) | |
Interest expense | 201,706 | 97,696 | 76,884 | |
G&A and other | 503,434 | 395,007 | 368,208 | |
Total operating expenses | 705,140 | 492,703 | 445,092 | |
Change in fair value of investments | (1,812) | 0 | 0 | |
Gain (loss) on settlement of investments, net | (1,378) | (4,766) | (5,486) | |
Other income (loss), net | 767 | 742 | (1,738) | |
Total other income (loss) | (2,423) | (4,024) | (7,224) | |
Income (loss) before income taxes | 1,695,636 | 337,899 | (591,290) | |
Income tax (benefit) expense | 357,715 | 17,828 | (58,288) | |
Net income (loss) | 1,337,921 | 320,071 | (533,002) | |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | |
Dividends on preferred stock | 0 | 0 | 0 | |
Net income (loss) attributable to common stockholders - basic | 1,337,921 | 320,071 | (533,002) | |
Operating Segments | MSR Related Investments | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 400,017 | 537,755 | 762,600 | |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(631,120)) | 1,528 | (261,698) | (1,074,570) | |
Servicing revenue, net | 401,545 | 276,057 | (311,970) | |
Interest income | 105,279 | 49,162 | 58,517 | |
Gain on originated residential mortgage loans, held-for-sale, net | 0 | (138,505) | 23,860 | |
Total revenues | 506,824 | 186,714 | (229,593) | |
Interest expense | 107,849 | 104,838 | 157,230 | |
G&A and other | 195,415 | 273,748 | 155,882 | |
Total operating expenses | 303,264 | 378,586 | 313,112 | |
Change in fair value of investments | (11,386) | (22,336) | (18,958) | |
Gain (loss) on settlement of investments, net | (5,883) | (35,116) | (11,227) | |
Other income (loss), net | 42,635 | 79,355 | 39,690 | |
Total other income (loss) | 25,366 | 21,903 | 9,505 | |
Income (loss) before income taxes | 228,926 | (169,969) | (533,200) | |
Income tax (benefit) expense | 40,678 | (26,553) | (71,719) | |
Net income (loss) | 188,248 | (143,416) | (461,481) | |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 2,850 | (1,800) | 891 | |
Dividends on preferred stock | 0 | 0 | 0 | |
Net income (loss) attributable to common stockholders - basic | 185,398 | (141,616) | (462,372) | |
Elimination | Origination and Servicing | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ (2,500) | $ (113,600) | $ (39,800) |
SEGMENT REPORTING - Servicing S
SEGMENT REPORTING - Servicing Segment Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Servicing revenue, net | $ 2,564,714 | $ 984,201 | $ (526,637) |
Servicing | |||
Segment Reporting Information [Line Items] | |||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 1,291,073 | 851,989 | 767,230 |
Ancillary and other fees | 140,874 | 173,899 | 123,961 |
Realization of cash flows | (414,017) | (783,349) | (792,680) |
Change in valuation inputs and assumptions and other | 1,145,239 | 469,694 | (301,659) |
Servicing revenue, net | 2,163,169 | 712,233 | (203,148) |
Servicing | MSR assets | |||
Segment Reporting Information [Line Items] | |||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 1,187,130 | 731,924 | 611,669 |
Residential mortgage loan UPB and other collateral | 401,897 | 389,852 | 220,880 |
Servicing | Residential whole loans | |||
Segment Reporting Information [Line Items] | |||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 11,354 | 16,448 | 16,081 |
Residential mortgage loan UPB and other collateral | 8,630 | 14,097 | 9,993 |
Servicing | Third party | |||
Segment Reporting Information [Line Items] | |||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 92,589 | 103,617 | 139,480 |
Residential mortgage loan UPB and other collateral | $ 93,036 | $ 78,814 | $ 66,892 |
EXCESS MORTGAGE SERVICING RIG_3
EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Excess Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Servicing Assets at Fair Value [Line Items] | |||
Rithm Capital’s investment | $ 8,889,403 | $ 6,858,803 | $ 4,585,841 |
Excess mortgage servicing rights assets, at fair value | |||
Servicing Assets at Fair Value [Line Items] | |||
Rithm Capital’s investment | 321,803 | 344,947 | |
Excess MSRs | |||
Servicing Assets at Fair Value [Line Items] | |||
Rithm Capital’s investment | 249,366 | 259,198 | $ 310,938 |
Excess MSR Joint Ventures | |||
Servicing Assets at Fair Value [Line Items] | |||
Rithm Capital’s investment | $ 72,437 | $ 85,749 |
EXCESS MORTGAGE SERVICING RIG_4
EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Activity Related to the Carrying Value of Investments in Excess MSRs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Carrying Value of Investments in Excess MSRs | ||
Beginning balance | $ 6,858,803 | $ 4,585,841 |
Ending balance | $ 8,889,403 | 6,858,803 |
Servicing Asset, Fair Value, Change in Fair Value, Other, Statement of Income or Comprehensive Income [Extensible Enumeration] | Change in fair value of investments | |
Excess MSRs | ||
Carrying Value of Investments in Excess MSRs | ||
Beginning balance | $ 259,198 | 310,938 |
Interest income | 38,035 | 20,296 |
Other income | 42 | 78 |
Proceeds from repayments | (43,950) | (56,052) |
Proceeds from sales | (997) | (984) |
Change in fair value | (2,962) | (15,078) |
Ending balance | $ 249,366 | $ 259,198 |
EXCESS MORTGAGE SERVICING RIG_5
EXCESS MORTGAGE SERVICING RIGHTS - Summary of Investments in Excess MSRs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Weighted Average Life (Years) | 1 year 2 months 12 days | ||
Original and recaptured pools | |||
Schedule of Equity Method Investments [Line Items] | |||
Original and Recaptured Pools | $ (2,962) | $ (15,078) | $ (16,232) |
Corporate Joint Venture | Servicer Advance Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Residential mortgage loan UPB and other collateral | 17,033,753 | 20,314,977 | |
Excess MSRs | |||
Schedule of Equity Method Investments [Line Items] | |||
Residential mortgage loan UPB and other collateral | $ 48,154,644 | $ 57,422,177 | |
Weighted Average Life (Years) | 6 years 3 months 18 days | 6 years 3 months 18 days | |
Amortized Cost Basis | $ 207,470 | $ 214,239 | |
Carrying Value | $ 249,366 | $ 259,198 | |
Excess MSRs | Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in Excess MSR | 32.50% | 32.50% | |
Excess MSRs | Minimum | Fortress-managed funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in Excess MSR | 0% | 0% | |
Excess MSRs | Minimum | Mr. Cooper | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in Excess MSR | 0% | 0% | |
Excess MSRs | Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in Excess MSR | 100% | 100% | |
Excess MSRs | Maximum | Fortress-managed funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in Excess MSR | 50% | 50% | |
Excess MSRs | Maximum | Mr. Cooper | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in Excess MSR | 35% | 35% | |
Excess MSRs | Weighted Average | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in Excess MSR | 56.50% | 56.30% |
EXCESS MORTGAGE SERVICING RIG_6
EXCESS MORTGAGE SERVICING RIGHTS - Narrative (Details) - MSRs | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted Average | ||
Schedule of Equity Method Investments [Line Items] | ||
Discount rate | 8.30% | 7.40% |
Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Discount rate | 7.60% | 6.90% |
Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Discount rate | 9.80% | 12.50% |
Excess MSR Joint Ventures | Weighted Average | ||
Schedule of Equity Method Investments [Line Items] | ||
Discount rate | 8.30% | 7.80% |
Excess MSR Joint Ventures | Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Discount rate | 8% | 7.50% |
Excess MSR Joint Ventures | Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Discount rate | 8.50% | 8% |
EXCESS MORTGAGE SERVICING RIG_7
EXCESS MORTGAGE SERVICING RIGHTS - Summary of Financial Results of Excess MSR Joint Ventures (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||||
Excess MSRs | $ 135,356 | $ 152,383 | ||
Other assets | 116,865 | 105,728 | ||
Other liabilities | (3,567,533) | (3,291,823) | ||
Total equity | 7,010,068 | 6,669,380 | $ 5,429,684 | $ 7,236,260 |
Rithm Capital’s investment | 8,889,403 | 6,858,803 | 4,585,841 | |
Interest income | 15,157 | 7,574 | 22,507 | |
Other income (loss) | (12,073) | (3,906) | (29,461) | |
Expenses | (32) | (32) | (24) | |
Net income (loss) | 983,285 | 805,582 | (1,357,684) | |
Excess MSR Joint Ventures | ||||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||||
Rithm Capital’s investment | $ 72,437 | $ 85,749 | ||
Rithm Capital’s percentage ownership | 50% | 50% | ||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||||
Other assets | $ 10,204 | $ 19,802 | ||
Other liabilities | (687) | (687) | ||
Total equity | 144,873 | 171,498 | ||
Net income (loss) | $ 3,052 | $ 3,636 | $ (6,978) |
EXCESS MORTGAGE SERVICING RIG_8
EXCESS MORTGAGE SERVICING RIGHTS - Summary of Equity Method Investees Changed - Roll Forward (Details) - Recurring Basis - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (Decrease) in Equity Method Investments [Roll Forward] | ||
Balance at beginning of period | $ 85,749 | $ 99,917 |
Contributions (distributions) to equity method investees | 0 | 0 |
Distributions of capital from equity method investees | (14,838) | (15,986) |
Change in fair value of investments in equity method investees | 1,526 | 1,818 |
Balance at end of period | $ 72,437 | $ 85,749 |
EXCESS MORTGAGE SERVICING RIG_9
EXCESS MORTGAGE SERVICING RIGHTS - Summary of Excess MSRs Made Through Equity Method Investees (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||
Weighted Average Life (Years) | 1 year 2 months 12 days | |
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 | ||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||
Rithm Capital Interest in Investees | 50% | |
Excess MSR Joint Ventures | Agency | Original and recaptured pools | ||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||
Unpaid Principal Balance | $ 19,299,726 | $ 23,039,453 |
Investee Interest in Excess MSR | 66.70% | 66.70% |
Rithm Capital Interest in Investees | 50% | 50% |
Amortized Cost Basis | $ 106,176 | $ 112,840 |
Carrying Value | $ 135,356 | $ 152,383 |
Weighted Average Life (Years) | 5 years 1 month 6 days | 5 years 8 months 12 days |
MORTGAGE SERVICING RIGHTS AND_3
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Rollforward of Carrying Value of Investments In MSRs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Activity related to carrying value of investments in mortgage servicing rights [Roll Forward] | ||
Beginning balance | $ 6,858,803 | $ 4,585,841 |
Caliber acquisition (Note 3) | 1,507,524 | |
Purchases, net | (967) | 10,949 |
Originations | 1,222,742 | 1,331,626 |
Proceeds from sales | (14,282) | (63,451) |
Realization of cash flows | (631,120) | (1,196,527) |
Change in valuation inputs and assumptions | 1,449,134 | 680,431 |
(Gain) loss realized | 5,093 | 2,410 |
Ending balance | $ 8,889,403 | $ 6,858,803 |
MORTGAGE SERVICING RIGHTS AND_4
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Servicing Fee Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Investments in Mortgage Servicing Rights [Line Items] | |||
Change in valuation inputs and assumptions | $ (1,449,134) | $ (680,431) | |
(Gain) loss realized | (5,093) | (2,410) | |
Gain (loss) on settlement of derivative instruments | 374,464 | (172,581) | $ (74,812) |
Servicing revenue, net | 2,564,714 | 984,201 | (526,637) |
Excess Spread Financing | |||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | |||
Realization of cash flows | (3,900) | (8,700) | |
Change in valuation inputs and assumptions | 300 | 5,500 | |
MSRs | |||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | |||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 1,699,587 | 1,446,509 | 1,457,211 |
Ancillary and other fees | 132,377 | 113,045 | 185,061 |
Servicing fee revenue and fees, net | 1,831,964 | 1,559,554 | 1,642,272 |
Realization of cash flows | (631,120) | (1,192,646) | (1,583,628) |
Change in valuation inputs and assumptions | 1,449,134 | 680,088 | (585,928) |
Change in fair value of derivative instruments | (11,316) | (30,481) | 0 |
(Gain) loss realized | 5,093 | 2,410 | 647 |
Gain (loss) on settlement of derivative instruments | (79,041) | (34,724) | 0 |
Servicing revenue, net | $ 2,564,714 | $ 984,201 | $ (526,637) |
MORTGAGE SERVICING RIGHTS AND_5
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Investment in MSRs and MSR Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Schedule of Mortgage Servicing Rights [Line Items] | |||||
Weighted Average Life (Years) | 1 year 2 months 12 days | ||||
Rithm Capital’s investment | $ 8,889,403 | $ 6,858,803 | $ 4,585,841 | ||
Residential mortgage loans subject to repurchase | 1,219,890 | [1] | 1,787,314 | [1] | $ 1,452,005 |
Mortgage Servicing Rights and Mortgage Servicing Rights Financing Receivable | |||||
Schedule of Mortgage Servicing Rights [Line Items] | |||||
Residential mortgage loan UPB and other collateral | $ 539,897,324 | $ 548,613,089 | |||
Weighted Average Life (Years) | 6 years 10 months 24 days | 6 years 3 months 18 days | |||
Rithm Capital’s investment | $ 8,889,403 | $ 6,858,803 | |||
MSRs | Weighted Average | |||||
Schedule of Mortgage Servicing Rights [Line Items] | |||||
Discount rate | 8.30% | 7.40% | |||
MSRs | Minimum | |||||
Schedule of Mortgage Servicing Rights [Line Items] | |||||
Discount rate | 7.60% | 6.90% | |||
MSRs | Maximum | |||||
Schedule of Mortgage Servicing Rights [Line Items] | |||||
Discount rate | 9.80% | 12.50% | |||
Agency | MSRs | |||||
Schedule of Mortgage Servicing Rights [Line Items] | |||||
Residential mortgage loan UPB and other collateral | $ 364,879,106 | $ 374,815,579 | |||
Weighted Average Life (Years) | 7 years 2 months 12 days | 6 years 1 month 6 days | |||
Rithm Capital’s investment | $ 6,022,266 | $ 4,443,713 | |||
Non-Agency | MSRs | |||||
Schedule of Mortgage Servicing Rights [Line Items] | |||||
Residential mortgage loan UPB and other collateral | $ 53,881,903 | $ 63,851,154 | |||
Weighted Average Life (Years) | 4 years 10 months 24 days | 8 years 3 months 18 days | |||
Rithm Capital’s investment | $ 794,459 | $ 943,210 | |||
Ginnie Mae | MSRs | |||||
Schedule of Mortgage Servicing Rights [Line Items] | |||||
Residential mortgage loan UPB and other collateral | $ 121,136,315 | $ 109,946,356 | |||
Weighted Average Life (Years) | 6 years 8 months 12 days | 5 years 8 months 12 days | |||
Rithm Capital’s investment | $ 2,072,678 | $ 1,471,880 | |||
[1]See Note 6 for details. |
MORTGAGE SERVICING RIGHTS AND_6
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2018 | Jul. 31, 2017 | ||
Schedule of MSRs [Line Items] | ||||||
Residential mortgage loan repurchase liability | [1] | $ 1,219,890 | $ 1,787,314 | |||
Residential mortgage loans, held-for-sale | 3,398,298 | 11,347,845 | ||||
Reserve for non-recovery advances | 65,428 | 32,122 | $ 22,849 | |||
Ocwen | Mortgage Servicing Rights | New Residential Mortgage LLC | ||||||
Schedule of MSRs [Line Items] | ||||||
Unpaid principal balance of underlying loans, transferred | 66,700,000 | |||||
Ocwen | Rithm Capital | ||||||
Schedule of MSRs [Line Items] | ||||||
Unpaid principal balance of underlying loans, not yet transferred | $ 12,400,000 | 14,000,000 | ||||
PHH Mortgage Corporation | ||||||
Schedule of MSRs [Line Items] | ||||||
Subservicer percent of UPB | 9.20% | |||||
Mr. Cooper | ||||||
Schedule of MSRs [Line Items] | ||||||
Subservicer percent of UPB | 8% | |||||
LoanCare | ||||||
Schedule of MSRs [Line Items] | ||||||
Subservicer percent of UPB | 6% | |||||
Valon | ||||||
Schedule of MSRs [Line Items] | ||||||
Subservicer percent of UPB | 2% | |||||
Flagstar | ||||||
Schedule of MSRs [Line Items] | ||||||
Subservicer percent of UPB | 0.30% | |||||
Newrez And Caliber | ||||||
Schedule of MSRs [Line Items] | ||||||
Subservicer percent of UPB | 74.50% | |||||
Ocwen | ||||||
Schedule of MSRs [Line Items] | ||||||
Unpaid Principal Balance | $ 86,800,000 | $ 110,000,000 | ||||
Ginnie Mae Loans | ||||||
Schedule of MSRs [Line Items] | ||||||
Residential mortgage loans, held-for-sale | $ 800,000 | 1,100,000 | ||||
Mortgage Loans Subserviced | ||||||
Schedule of MSRs [Line Items] | ||||||
Unpaid Principal Balance | 93,000,000 | |||||
Unpaid principal balance of underlying loans, not yet transferred | 78,800,000 | |||||
Subservicing revenue | $ 132,100 | $ 158,500 | ||||
[1]See Note 6 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 of the MSRs (Details) - MSRs - Mortgage Loans | Dec. 31, 2022 | Dec. 31, 2021 |
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 | 17.40% | 18.10% |
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 | 5.90% | 5.60% |
New Jersey | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.40% | 4.50% |
Virginia | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.60% | 3.40% |
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 | 3.40% | 3.40% |
Georgia | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 2.90% | 3% |
Other U.S. | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 38.20% | 37.80% |
MORTGAGE SERVICING RIGHTS AND_8
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Advances Included in Servicing Advances Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||
Total | $ 398,820 | $ 421,807 |
Servicer advances, unamortized discount and accrual | 19,500 | |
Servicer Advances Receivable | ||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||
Principal and interest advances | 664,495 | 562,418 |
Escrow advances (taxes and insurance advances) | 1,426,409 | 1,523,154 |
Foreclosure advances | 754,073 | 793,098 |
Total | 2,844,977 | 2,878,670 |
Servicer advances receivable related to agency MSRs | 526,500 | 593,000 |
Servicer advances receivable related to Ginnie Mae MSRS, recoverable from Ginnie Mae | $ 261,800 | 212,900 |
Servicer advances, unamortized discount and accrual | $ 23,500 |
MORTGAGE SERVICING RIGHTS AND_9
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Summary of Reserve For Servicer Advances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Servicer Advances Reserve [Roll Forward] | ||
Beginning balance | $ 32,122 | $ 22,849 |
Caliber acquisition (Note 3) | 15,068 | |
Provision | 48,392 | 11,560 |
Write-offs | (15,086) | (17,355) |
Ending balance | $ 65,428 | $ 32,122 |
SERVICER ADVANCE INVESTMENTS -
SERVICER ADVANCE INVESTMENTS - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||||
Jul. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2018 | Jul. 31, 2017 | ||
Servicing Assets at Fair Value [Line Items] | |||||||
Residential mortgage loan repurchase liability | [1] | $ 1,219,890 | $ 1,787,314 | ||||
Residential mortgage loans, held-for-sale | 3,398,298 | 11,347,845 | |||||
Ginnie Mae Loans | |||||||
Servicing Assets at Fair Value [Line Items] | |||||||
Residential mortgage loans, held-for-sale | $ 800,000 | 1,100,000 | |||||
Mr. Cooper | |||||||
Servicing Assets at Fair Value [Line Items] | |||||||
Servicer basic fee, percent | 9.20% | ||||||
Performance fee, percent (up to) | 100% | ||||||
Ocwen | Mortgage Servicing Rights | New Residential Mortgage LLC | |||||||
Servicing Assets at Fair Value [Line Items] | |||||||
Unpaid principal balance of underlying loans, transferred | $ 66,700,000 | ||||||
Ocwen | Rithm Capital | |||||||
Servicing Assets at Fair Value [Line Items] | |||||||
Unpaid principal balance of underlying loans, not yet transferred | 12,400,000 | $ 14,000,000 | |||||
The Buyer | |||||||
Servicing Assets at Fair Value [Line Items] | |||||||
Capital distributed to third-party co-investors | 71,500 | ||||||
Capital distributed to new residential | 597,900 | ||||||
Ocwen | |||||||
Servicing Assets at Fair Value [Line Items] | |||||||
Unpaid Principal Balance | $ 86,800,000 | $ 110,000,000 | |||||
Servicer Advance Investments | |||||||
Servicing Assets at Fair Value [Line Items] | |||||||
Funded capital commitments | 627,400 | ||||||
Servicer Advance Investments | Noncontrolling Third-party Investors | |||||||
Servicing Assets at Fair Value [Line Items] | |||||||
Funded capital commitments | $ 75,000 | ||||||
Servicer Advance Investments | The Buyer | |||||||
Servicing Assets at Fair Value [Line Items] | |||||||
Rithm Capital’s percentage ownership | 89.30% | 89.30% | 73.20% | ||||
Ownership percentage acquired during period | 16.10% | ||||||
[1]See Note 6 for details. |
SERVICER ADVANCE INVESTMENTS _2
SERVICER ADVANCE INVESTMENTS - Summary of Investments in Servicer Advances (Details) - Servicer Advance Investments - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investments in and Advances to Affiliates [Line Items] | ||
Amortized Cost Basis | $ 392,749 | $ 405,786 |
Carrying Value | $ 398,820 | $ 421,807 |
Weighted Average Discount Rate | 5.70% | 5.20% |
Weighted Average Yield | 5.60% | 5.50% |
Weighted Average Life (Years) | 8 years 4 months 24 days | 6 years 10 months 24 days |
SERVICER ADVANCE INVESTMENTS _3
SERVICER ADVANCE INVESTMENTS - Summary of Investments in Servicer Advances - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments in and Advances to Affiliates [Line Items] | ||
Outstanding Servicer Advances | $ 398,820 | $ 421,807 |
Face Amount of Secured Notes and Bonds Payable | 21,460,632 | |
Servicer Advance Investments | Servicer Advances | ||
Investments in and Advances to Affiliates [Line Items] | ||
Residential mortgage loan UPB and other collateral | 17,033,753 | 20,314,977 |
Outstanding Servicer Advances | $ 341,628 | $ 369,440 |
Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2% | 1.80% |
Face Amount of Secured Notes and Bonds Payable | $ 319,276 | $ 356,580 |
Gross Loan-to-Value | 90.20% | 91.40% |
Net Loan-to-Value | 88.30% | 90.70% |
Gross Cost of Funds | 6.50% | 1.30% |
Net Cost of Funds | 5.90% | 1.20% |
SERVICER ADVANCE INVESTMENTS _4
SERVICER ADVANCE INVESTMENTS - Summary of Investments in Servicer Advances - Components of Funded Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Servicing Assets at Fair Value [Line Items] | ||
Total | $ 398,820 | $ 421,807 |
Servicer Advance Investments | Servicer Advances | ||
Servicing Assets at Fair Value [Line Items] | ||
Principal and interest advances | 66,892 | 67,014 |
Escrow advances (taxes and insurance advances) | 155,438 | 174,681 |
Foreclosure advances | 119,298 | 127,745 |
Total | $ 341,628 | $ 369,440 |
SERVICER ADVANCE INVESTMENTS _5
SERVICER ADVANCE INVESTMENTS - Schedule of Interest Income Related to Investments in Servicer Advances (Details) - Servicer Advance Investments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Servicing Assets at Fair Value [Line Items] | |||
Interest income, gross of amounts attributable to servicer compensation | $ 15,821 | $ 12,501 | $ 34,262 |
Amounts attributable to basic servicer compensation | (891) | (1,798) | (3,248) |
Amounts attributable to incentive servicer compensation | 27,075 | (9,025) | (12,832) |
Interest income from servicer advance investments | $ 42,005 | $ 1,678 | $ 18,182 |
REAL ESTATE AND OTHER SECURIT_3
REAL ESTATE AND OTHER SECURITIES - Summary of Real Estate Securities (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security | |
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 25,370,934 | $ 24,314,300 |
Carrying Value | $ 8,289,277 | 9,396,539 |
Weighted Average Life (Years) | 1 year 2 months 12 days | |
Investments | $ 24,428,594 | 31,564,175 |
Residual Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | 16,600 | |
Non-Agency Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | 1,100 | |
AFS Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 80,261 | 91,572 |
Gross Unrealized Gains | 0 | 7,008 |
Gross Unrealized Losses | 0 | 0 |
Carrying Value | $ 73,439 | $ 98,367 |
Number of Securities | security | 1 | 1 |
Weighted Average Coupon | 3.50% | 3.50% |
Weighted Average Yield | 3.50% | 3.50% |
Weighted Average Life (Years) | 8 years 10 months 24 days | 4 years 4 months 24 days |
AFS Non-Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 2,631,852 | $ 2,956,066 |
Gross Unrealized Gains | 72,354 | 84,494 |
Gross Unrealized Losses | (33,684) | (117) |
Carrying Value | $ 397,076 | $ 522,416 |
Number of Securities | security | 333 | 334 |
Weighted Average Coupon | 3.50% | 3.29% |
Weighted Average Yield | 3.50% | 3.18% |
Weighted Average Life (Years) | 6 years 4 months 24 days | 3 years 4 months 24 days |
Weighted Average Principal Subordination | 29.10% | 26.60% |
FVO Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 7,383,261 | $ 8,307,771 |
Gross Unrealized Gains | 91,770 | 204 |
Gross Unrealized Losses | (43,826) | (226,309) |
Carrying Value | $ 7,264,978 | $ 8,346,230 |
Number of Securities | security | 35 | 40 |
Weighted Average Coupon | 5% | 2.13% |
Weighted Average Yield | 5% | 2.13% |
Weighted Average Life (Years) | 8 years 7 months 6 days | 7 years |
FVO Non-Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 15,275,560 | $ 12,958,891 |
Gross Unrealized Gains | 56,213 | 32,814 |
Gross Unrealized Losses | (91,369) | (51,892) |
Carrying Value | $ 553,784 | $ 429,526 |
Number of Securities | security | 341 | 271 |
Weighted Average Coupon | 2.70% | 2.15% |
Weighted Average Yield | 4.80% | 3.91% |
Weighted Average Life (Years) | 7 years 6 months | 3 years 2 months 12 days |
Weighted Average Principal Subordination | 16.70% | 20.30% |
Agency And Non-Agency Residential Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 25,370,934 | $ 24,314,300 |
Gross Unrealized Gains | 220,337 | 124,520 |
Gross Unrealized Losses | (168,879) | (278,318) |
Carrying Value | $ 8,289,277 | $ 9,396,539 |
Number of Securities | security | 710 | 646 |
Weighted Average Coupon | 4.80% | 2.19% |
Weighted Average Yield | 4.90% | 2.27% |
Weighted Average Life (Years) | 8 years 4 months 24 days | 6 years 7 months 6 days |
Agency RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 7,463,522 | $ 8,399,343 |
Agency RMBS | Fixed Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 7,500,000 | 8,400,000 |
Agency RMBS | Floating Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 0 | 0 |
Non-Agency RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 17,907,412 | 15,914,957 |
Non-Agency RMBS | Fixed Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 8,400,000 | 9,600,000 |
Residual and interest - only notional amount | 7,500,000 | 8,700,000 |
Non-Agency RMBS | Floating Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 9,500,000 | 6,400,000 |
Residual and interest - only notional amount | 9,300,000 | 6,200,000 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 514 | 414 |
Gross Unrealized Gains | 0 | 9 |
Gross Unrealized Losses | 0 | 0 |
Carrying Value | $ 465 | $ 423 |
Number of Securities | security | 2 | 1 |
Weighted Average Coupon | 8.20% | 8.25% |
Weighted Average Yield | 9.50% | 8.25% |
Weighted Average Life (Years) | 2 years 2 months 12 days | 3 years 3 months 18 days |
Consumer loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 518 | $ 2,960 |
Gross Unrealized Gains | 522 | 878 |
Gross Unrealized Losses | 0 | 0 |
Carrying Value | $ 590 | $ 2,974 |
Number of Securities | security | 3 | 3 |
Weighted Average Life (Years) | 8 months 12 days | 0 years |
Interest-only securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 9,652,902 | $ 7,368,874 |
Gross Unrealized Gains | 29,681 | 8,099 |
Gross Unrealized Losses | (31,714) | (43,626) |
Carrying Value | $ 160,160 | $ 152,489 |
Number of Securities | security | 141 | 127 |
Weighted Average Coupon | 0.90% | 1.19% |
Weighted Average Yield | 5.40% | 1.54% |
Weighted Average Life (Years) | 3 years 2 months 12 days | 2 years |
Servicing strips | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 4,338,099 | $ 4,413,700 |
Gross Unrealized Gains | 17,501 | 6,869 |
Gross Unrealized Losses | (4,105) | (7,758) |
Carrying Value | $ 59,017 | $ 59,120 |
Number of Securities | security | 61 | 59 |
Weighted Average Coupon | 0.70% | 1.40% |
Weighted Average Yield | 9.90% | 13.12% |
Weighted Average Life (Years) | 4 years 2 months 12 days | 2 years 7 months 6 days |
REAL ESTATE AND OTHER SECURIT_4
REAL ESTATE AND OTHER SECURITIES - Schedule of Investment in Real Estate Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Agency | ||
Purchases | ||
Face | $ 16,479.3 | $ 5,907.2 |
Purchase price | 16,314.6 | 6,098.8 |
Sales | ||
Face | 16,516 | 7,830.8 |
Amortized cost | 16,759.7 | 8,135.6 |
Sale price | 15,026.3 | 8,074.3 |
Gain (loss) on sale | (1,733.4) | (61.3) |
Non-Agency | ||
Purchases | ||
Face | 5,018.1 | 2,999.3 |
Purchase price | 256.5 | 174.3 |
Sales | ||
Face | 15.3 | 1,686.9 |
Amortized cost | 13.6 | 193.2 |
Sale price | 12 | 164.7 |
Gain (loss) on sale | $ (1.6) | $ (28.5) |
REAL ESTATE AND OTHER SECURIT_5
REAL ESTATE AND OTHER SECURITIES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||
Provision (reversal) for credit losses on securities | $ 7,300,000 | $ (5,200,000) | $ 13,400,000 |
Agency | |||
Debt Securities, Available-for-sale [Line Items] | |||
Face amount of securities purchased, unsettled | 738,400,000 | $ 0 | |
Payments for securities purchased, unsettled | 730,000,000 | ||
Face amount of securities sold | 490,800,000 | ||
Proceeds of securities sold, unsettled | $ 471,600,000 |
REAL ESTATE AND OTHER SECURIT_6
REAL ESTATE AND OTHER SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 25,370,934 | $ 24,314,300 |
Weighted Average Life (Years) | 1 year 2 months 12 days | |
Less than 12 Months | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 408,191 | |
Before Impairment - Amortized Cost Basis | 390,591 | |
Credit Impairment - Amortized Cost Basis | (10,816) | |
After Credit Impairment - Amortized Cost Basis | 379,775 | |
Gross Unrealized Losses - Less than 12 Months | (33,435) | |
Carrying Value - Less than 12 Months | $ 346,340 | |
Number of Securities - Less than 12 Months | security | 199 | |
Weighted Average Coupon | 4.80% | |
Weighted Average Yield | 4.90% | |
Weighted Average Life (Years) | 8 years 6 months | |
12 or More Months | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 3,107 | |
Before Impairment - Amortized Cost Basis | 3,157 | |
Credit Impairment - Amortized Cost Basis | 0 | |
After Credit Impairment - Amortized Cost Basis | 3,157 | |
Gross Unrealized Losses - 12 or More Months | (249) | |
Carrying Value - 12 or More Months | $ 2,908 | |
Number of Securities - 12 or More Months | security | 2 | |
Weighted Average Coupon | 1.50% | |
Weighted Average Yield | 4% | |
Weighted Average Life (Years) | 3 years 7 months 6 days | |
Total/Weighted Average | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 411,298 | |
Before Impairment - Amortized Cost Basis | 393,748 | |
Credit Impairment - Amortized Cost Basis | (10,816) | |
After Credit Impairment - Amortized Cost Basis | 382,932 | |
Gross Unrealized Losses - Total | (33,684) | |
Carrying Value - Total | $ 349,248 | |
Number of Securities - Total | security | 201 | |
Weighted Average Coupon | 4.80% | |
Weighted Average Yield | 4.90% | |
Weighted Average Life (Years) | 8 years 6 months |
REAL ESTATE AND OTHER SECURIT_7
REAL ESTATE AND OTHER SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position - Associated Intent to Sell (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
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 | 77,843 | 6,581 |
Amortized Cost Basis After Credit Impairment | 78,101 | 6,581 |
Gross Unrealized Losses, Credit | (10,816) | (3,471) |
Gross Unrealized Losses, Non-Credit | (258) | 0 |
Non-credit impaired securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 271,405 | 3,927 |
Amortized Cost Basis After Credit Impairment | 304,831 | 4,044 |
Gross Unrealized Losses, Credit | 0 | 0 |
Gross Unrealized Losses, Non-Credit | (33,426) | (117) |
Total debt securities in an unrealized loss position | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 349,248 | 10,508 |
Amortized Cost Basis After Credit Impairment | 382,932 | 10,625 |
Gross Unrealized Losses, Credit | (10,816) | (3,471) |
Gross Unrealized Losses, Non-Credit | $ (33,684) | $ (117) |
REAL ESTATE AND OTHER SECURIT_8
REAL ESTATE AND OTHER SECURITIES - Summary of Activity Related to Credit Losses on Debt Securities Excluding Credit Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses on available-for-sale debt securities at beginning balance | $ 3,471 | $ 8,672 |
Additions to the allowance for credit losses on securities for which credit losses were not previously recorded | 6,804 | 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 | 0 |
Reductions for securities sold during the period | 0 | (2,182) |
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 | 0 |
Additional increases (decreases) to the allowance for credit losses on securities that had credit losses or an allowance recorded in a previous period | 541 | (3,019) |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Allowance for credit losses on available-for-sale debt securities at ending balance | 10,816 | 3,471 |
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 beginning balance | 3,471 | 8,672 |
Additions to the allowance for credit losses on securities for which credit losses were not previously recorded | 128 | 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 | 0 |
Reductions for securities sold during the period | 0 | (2,182) |
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 | 0 |
Additional increases (decreases) to the allowance for credit losses on securities that had credit losses or an allowance recorded in a previous period | 541 | (3,019) |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Allowance for credit losses on available-for-sale debt securities at ending balance | 4,140 | 3,471 |
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 beginning balance | 0 | 0 |
Additions to the allowance for credit losses on securities for which credit losses were not previously recorded | 6,676 | 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 | 0 |
Reductions for securities sold during the period | 0 | 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 | 0 |
Additional increases (decreases) to the allowance for credit losses on securities that had credit losses or an allowance recorded in a previous period | 0 | 0 |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Allowance for credit losses on available-for-sale debt securities at ending balance | $ 6,676 | $ 0 |
REAL ESTATE AND OTHER SECURIT_9
REAL ESTATE AND OTHER SECURITIES - Schedule of the Outstanding Face Amount and Carrying Value for Securities Uncollectible (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Outstanding Face Amount | $ 443,680 | $ 512,731 |
Carrying Value | $ 66,775 | $ 180,890 |
REAL ESTATE AND OTHER SECURI_10
REAL ESTATE AND OTHER SECURITIES - Summary of Changes in Accretable Yield for Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Certain Loans Acquired in Transfer Accounted for as Available-for-sale Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning balance | $ 36,093 | $ 189,562 |
Additions | 0 | 8,324 |
Accretion | (2,155) | (4,720) |
Reclassifications from (to) non-accretable difference | 7,262 | (8,015) |
Disposals | 0 | (149,058) |
Ending balance | $ 41,200 | $ 36,093 |
RESIDENTIAL MORTGAGE LOANS - Re
RESIDENTIAL MORTGAGE LOANS - Residential Mortgage Loans Outstanding by Loan Type, Excluding REO (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Weighted Average Life (Years) | 1 year 2 months 12 days | |
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 | $ 538,710 | |
Carrying Value | $ 452,519 | $ 569,933 |
Loan Count | loan | 9,612,000 | |
Weighted Average Yield | 8.50% | |
Weighted Average Life (Years) | 4 years 3 months 18 days | |
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 | $ 117,847 | |
Carrying Value | $ 101,027 | 132,921 |
Loan Count | loan | 2,697,000 | |
Weighted Average Yield | 8.30% | |
Weighted Average Life (Years) | 4 years 7 months 6 days | |
Acquired performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 85,049 | |
Carrying Value | $ 72,425 | 130,634 |
Loan Count | loan | 2,249,000 | |
Weighted Average Yield | 8.50% | |
Weighted Average Life (Years) | 5 years 2 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 | $ 523,100 | |
Acquired non-performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | 32,798 | |
Carrying Value | $ 28,602 | 2,287 |
Loan Count | loan | 448,000 | |
Weighted Average Yield | 7.80% | |
Weighted Average Life (Years) | 3 years | |
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 | $ 299,200 | |
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 | 3,387,888 | |
Carrying Value | $ 3,297,271 | 11,214,924 |
Loan Count | loan | 12,172,000 | |
Weighted Average Yield | 6% | |
Weighted Average Life (Years) | 26 years 4 months 24 days | |
Acquired performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 947,910 | |
Carrying Value | $ 890,131 | 2,070,262 |
Loan Count | loan | 4,474,000 | |
Weighted Average Yield | 5.70% | |
Weighted Average Life (Years) | 19 years 2 months 12 days | |
Acquired non-performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 369,220 | |
Carrying Value | $ 340,342 | 315,063 |
Loan Count | loan | 1,938,000 | |
Weighted Average Yield | 4.30% | |
Weighted Average Life (Years) | 27 years 10 months 24 days | |
Originated loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 2,070,758 | |
Carrying Value | $ 2,066,798 | 8,829,599 |
Loan Count | loan | 5,760,000 | |
Weighted Average Yield | 6.50% | |
Weighted Average Life (Years) | 29 years 6 months | |
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 | $ 3,505,735 | |
Carrying Value | $ 3,398,298 | $ 11,347,845 |
RESIDENTIAL MORTGAGE LOANS - Ge
RESIDENTIAL MORTGAGE LOANS - Geographic Distribution of the Underlying Residential Mortgage Loans (Details) - Residential Mortgage Loans | Dec. 31, 2022 | Dec. 31, 2021 |
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 | 10.90% | 10.10% |
California | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 10.20% | 15.70% |
Texas | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 8.90% | 6.70% |
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 | 6.80% | 7.10% |
Washington | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.40% | 7.50% |
Georgia | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.20% | 3.10% |
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% | 2.80% |
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% | 2% |
Maryland | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.10% | 3.10% |
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 | 40.90% | 38.10% |
RESIDENTIAL MORTGAGE LOANS - Sc
RESIDENTIAL MORTGAGE LOANS - Schedule of Aggregate Unpaid Principal Balance and Aggregate Carrying Value (Details) - 90+ - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | $ 0 | $ 0 |
Fair Value | 0 | 0 |
Fair Value Over (Under) UPB | 0 | 0 |
Residential Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 468,147 | 779,178 |
Fair Value | 423,321 | 740,043 |
Fair Value Over (Under) UPB | $ (44,826) | $ (39,135) |
RESIDENTIAL MORTGAGE LOANS - Na
RESIDENTIAL MORTGAGE LOANS - Narrative (Details) - Residential Mortgage Loans $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) trust | Dec. 31, 2021 USD ($) trust | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Number of trusts called | trust | 5 | 75 |
Loans Sold | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Investment income | $ 0 | $ 3.3 |
Gain on securitization accounted for as sales | $ 8.3 | $ 29 |
RESIDENTIAL MORTGAGE LOANS - Ca
RESIDENTIAL MORTGAGE LOANS - Carrying Value of Mortgage Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | ||
Balance, beginning | $ 11,347,845 | |
Transfer of loans to real estate owned | (14,936) | $ (30,015) |
Balance, ending | 3,398,298 | 11,347,845 |
Residential Portfolio Segment | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | ||
Balance, beginning | 11,917,778 | 5,889,882 |
Caliber acquisition (Note 3) | 7,685,681 | |
Originations | 67,406,228 | 123,059,895 |
Sales | (81,653,129) | (132,335,618) |
Purchases/additional fundings | 6,887,407 | 8,102,055 |
Proceeds from repayments | (493,051) | (673,407) |
Transfer of loans to other assets | (25,375) | 21,527 |
Transfer of loans to real estate owned | (7,094) | (26,268) |
Transfers of loans to held-for-sale | (1,580) | |
Transfers of loans to from held-for-investment | 1,582 | |
Valuation provision on loans | (8,305) | 38,273 |
Changes in instrument-specific credit risk | (69,290) | (20,119) |
Other factors | (104,354) | 175,877 |
Balance, ending | 3,850,817 | 11,917,778 |
Residential Mortgage Loans, Held-for-Investment | Residential Portfolio Segment | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | ||
Balance, beginning | 569,933 | 674,179 |
Caliber acquisition (Note 3) | 0 | |
Originations | 0 | 0 |
Sales | 0 | 0 |
Purchases/additional fundings | 7,182 | 0 |
Proceeds from repayments | (80,661) | (120,247) |
Transfer of loans to other assets | 0 | 0 |
Transfer of loans to real estate owned | (4,956) | (15,165) |
Transfers of loans to held-for-sale | (1,580) | |
Transfers of loans to from held-for-investment | 0 | |
Valuation provision on loans | 0 | 0 |
Changes in instrument-specific credit risk | (33,086) | (2,020) |
Other factors | (4,313) | 33,186 |
Balance, ending | 452,519 | 569,933 |
Residential Mortgage Loans, Held-for-Sale | Loans Held-for-Sale, at Lower Cost or 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 | 132,921 | 509,887 |
Caliber acquisition (Note 3) | 0 | |
Originations | 0 | 0 |
Sales | (4,426) | (374,683) |
Purchases/additional fundings | 0 | 0 |
Proceeds from repayments | (17,777) | (32,826) |
Transfer of loans to other assets | 0 | (585) |
Transfer of loans to real estate owned | (1,386) | (7,145) |
Transfers of loans to held-for-sale | 0 | |
Transfers of loans to from held-for-investment | 0 | |
Valuation provision on loans | (8,305) | 38,273 |
Changes in instrument-specific credit risk | 0 | 0 |
Other factors | 0 | 0 |
Balance, ending | 101,027 | 132,921 |
Residential Mortgage Loans, Held-for-Sale | Loans Held-for-Sale, 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 | 11,214,924 | 4,705,816 |
Caliber acquisition (Note 3) | 7,685,681 | |
Originations | 67,406,228 | 123,059,895 |
Sales | (81,648,703) | (131,960,935) |
Purchases/additional fundings | 6,880,225 | 8,102,055 |
Proceeds from repayments | (394,613) | (520,334) |
Transfer of loans to other assets | (25,375) | 22,112 |
Transfer of loans to real estate owned | (752) | (3,958) |
Transfers of loans to held-for-sale | 0 | |
Transfers of loans to from held-for-investment | 1,582 | |
Valuation provision on loans | 0 | 0 |
Changes in instrument-specific credit risk | (36,204) | (18,099) |
Other factors | (100,041) | 142,691 |
Balance, ending | $ 3,297,271 | $ 11,214,924 |
RESIDENTIAL MORTGAGE LOANS - _2
RESIDENTIAL MORTGAGE LOANS - Schedule of Net Interest Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest income: | |||
Loans held-for-investment, at fair value | $ 45,287 | $ 44,369 | $ 53,264 |
Total interest income | 263,423 | 327,711 | 239,123 |
Interest expense: | |||
Loans held-for-investment, at fair value | 17,583 | 16,919 | 21,029 |
Total interest expense | 202,056 | 197,665 | 133,634 |
Net interest income | 61,367 | 130,046 | 105,489 |
Loans Held-for-Sale, at Lower Cost or Fair Value | |||
Interest income: | |||
Loans Held-for-Sale | 6,898 | 23,280 | 50,130 |
Interest expense: | |||
Loans Held-for-Sale | 3,402 | 21,333 | 22,541 |
Loans Held-for-Sale, at Fair Value | |||
Interest income: | |||
Loans Held-for-Sale | 211,238 | 260,062 | 135,729 |
Interest expense: | |||
Loans Held-for-Sale | $ 181,071 | $ 159,413 | $ 90,064 |
RESIDENTIAL MORTGAGE LOANS - _3
RESIDENTIAL MORTGAGE LOANS - Schedule of Gain on Sale of Originated Mortgage Loans, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Long Lived Assets Held-for-sale [Line Items] | |||
Gain (loss) on residential mortgage loans originated and sold, net | $ (1,106,458) | $ 460,062 | $ 811,288 |
Gain (loss) on settlement of residential mortgage loan origination derivative instruments | 1,285,219 | 240,610 | (361,755) |
MSRs retained on transfer of residential mortgage loans | 1,222,742 | 1,331,626 | 666,414 |
Other | 33,551 | 107,249 | 49,270 |
Realized gain on sale of originated residential mortgage loans, net | 1,435,054 | 2,139,547 | 1,165,217 |
Gain on originated residential mortgage loans, held-for-sale, net | 1,086,232 | 1,826,909 | 1,399,092 |
Loan origination fees and direct loan origination costs | 600,000 | 2,300,000 | 1,700,000 |
Change in fair value of interest rate lock commitments | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Change in fair value of derivative instruments | (102,992) | (293,699) | 249,183 |
Change in fair value of derivative instruments | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Change in fair value of derivative instruments | 25,700 | 118,564 | (115,216) |
Change in fair value of residential mortgage loans | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Change in fair value of residential mortgage loans | $ (271,530) | $ (137,503) | $ 99,908 |
CONSUMER LOANS - Narrative (Det
CONSUMER LOANS - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Consumer Loan SPVs | |
Schedule of Consumer Loans [Line Items] | |
Owner interest | 53.50% |
CONSUMER LOANS - Summary of Inv
CONSUMER LOANS - Summary of Investment in Consumer Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Consumer Loans [Line Items] | ||
Weighted Average Expected Life (Years) | 1 year 2 months 12 days | |
Consumer Portfolio Segment | ||
Schedule of Consumer Loans [Line Items] | ||
Unpaid Principal Balance | $ 330,428 | $ 449,875 |
Carrying Value | $ 363,756 | $ 507,291 |
Weighted Average Coupon | 17.80% | 17.50% |
Weighted Average Expected Life (Years) | 3 years 4 months 24 days | 3 years 2 months 12 days |
CONSUMER LOANS - Schedule of Ag
CONSUMER LOANS - Schedule of Aggregate Unpaid Principal Balance and Aggregate Carrying Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
90+ | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | $ 0 | $ 0 |
Fair Value | 0 | 0 |
Fair Value Over (Under) UPB | 0 | 0 |
Consumer Portfolio Segment | Current | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 325,192 | 442,481 |
Fair Value | 358,057 | 499,059 |
Fair Value Over (Under) UPB | 32,865 | 56,578 |
Consumer Portfolio Segment | 90+ | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 5,236 | 7,394 |
Fair Value | 5,699 | 8,232 |
Fair Value Over (Under) UPB | 463 | 838 |
Consumer Portfolio Segment | Past Due | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 330,428 | 449,875 |
Fair Value | 363,756 | 507,291 |
Fair Value Over (Under) UPB | $ 33,328 | $ 57,416 |
CONSUMER LOANS - Carrying Value
CONSUMER LOANS - Carrying Value of Consumer Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans Receivable [Roll Forward] | |||
Proceeds from repayments | $ (85,836) | $ (119,841) | $ (139,561) |
Accretion of loan discount and premium amortization, net | 91,891 | 49,382 | 151,540 |
Changes in instrument-specific credit risk | (63,062) | 0 | |
Other factors | (1,397) | 301 | |
Consumer Portfolio Segment | Performing | |||
Loans Receivable [Roll Forward] | |||
Beginning balance | 507,291 | 685,575 | |
Additional fundings | 29,615 | 29,002 | |
Proceeds from repayments | (150,301) | (206,078) | |
Accretion of loan discount and premium amortization, net | 13,891 | 18,925 | |
Changes in instrument-specific credit risk | 1,540 | 22,915 | |
Other factors | (38,280) | (43,048) | |
Ending balance | $ 363,756 | $ 507,291 | $ 685,575 |
SINGLE-FAMILY RENTAL PROPERTI_3
SINGLE-FAMILY RENTAL PROPERTIES - Net Carrying Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Real Estate [Line Items] | |||
Investment in SFR properties, net | $ 971,313 | $ 579,607 | |
Single Family | |||
Real Estate [Line Items] | |||
Land | 175,607 | 109,152 | |
Building | 702,427 | 436,610 | |
Capital improvements | 118,999 | 40,655 | |
Total gross investment in SFR properties | 997,033 | 586,417 | |
Accumulated depreciation | (25,720) | (6,810) | |
Investment in SFR properties, net | $ 971,313 | $ 579,607 | $ 41,271 |
SINGLE-FAMILY RENTAL PROPERTI_4
SINGLE-FAMILY RENTAL PROPERTIES - Narrative (Details) - Single Family - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Real Estate [Line Items] | ||
Accumulated depreciation | $ 18,910 | $ 6,072 |
Capitalized acquisition costs | $ 7,700 | $ 3,800 |
Minimum | ||
Real Estate [Line Items] | ||
Lease term | 1 year | |
Maximum | ||
Real Estate [Line Items] | ||
Lease term | 2 years |
SINGLE-FAMILY RENTAL PROPERTI_5
SINGLE-FAMILY RENTAL PROPERTIES - Activity in Single-Family Rental Properties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | $ 579,607 | |
Ending balance | 971,313 | $ 579,607 |
Single Family | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 579,607 | 41,271 |
Acquisitions and capital improvements | 415,858 | 544,408 |
Dispositions | (5,242) | 0 |
Accumulated depreciation | (18,910) | (6,072) |
Ending balance | $ 971,313 | $ 579,607 |
SINGLE-FAMILY RENTAL PROPERTI_6
SINGLE-FAMILY RENTAL PROPERTIES - Revenue to be Received (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Real Estate [Line Items] | |
Total | $ 8,500 |
Single Family | |
Real Estate [Line Items] | |
2023 | 33,119 |
2024 and thereafter | 954 |
Total | $ 34,073 |
SINGLE-FAMILY RENTAL PROPERTI_7
SINGLE-FAMILY RENTAL PROPERTIES - Activity in Single-Family Rental Portfolio by Units (Details) - Single Family - property | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 2,551,000 | 257,000 |
Acquisition of SFR units | 1,226,000 | 2,294,000 |
Disposition of SFR units | (16,000) | 0 |
Ending balance | 3,761,000 | 2,551,000 |
MORTGAGE LOANS RECEIVABLE - Sum
MORTGAGE LOANS RECEIVABLE - Summary of Mortgage Loans Receivable By Purpose (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | Dec. 31, 2020 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Carrying Value | $ 94,401 | $ 290,180 | $ 52,389 |
Mortgage Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Carrying Value | $ 2,064,028 | $ 1,515,762 | $ 0 |
% of Portfolio | 100% | 100% | |
Loan Count | loan | 1,677 | 1,464 | |
% of Portfolio | 100% | 100% | |
Weighted Average Yield | 8.20% | 8.10% | |
Weighted Average Original Life (Months) | 16 months 15 days | 15 months 8 days | |
Mortgage Loans Receivable | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Carrying Value | $ 965,495 | $ 610,446 | |
% of Portfolio | 46.80% | 40.30% | |
Loan Count | loan | 622 | 486 | |
% of Portfolio | 37.10% | 33.20% | |
Weighted Average Yield | 8.30% | 8.30% | |
Weighted Average Original Life (Months) | 15 months | 16 months | |
Weighted Average Committed Loan Balance to Value, LTC | 76.80% | 75.60% | |
Weighted Average Committed Loan Balance to Value, LTARV | 65.60% | 65% | |
Mortgage Loans Receivable | Bridge | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Carrying Value | $ 838,539 | $ 716,764 | |
% of Portfolio | 40.60% | 47.30% | |
Loan Count | loan | 701 | 632 | |
% of Portfolio | 41.80% | 43.20% | |
Weighted Average Yield | 8.10% | 7.80% | |
Weighted Average Original Life (Months) | 20 months 4 days | 15 months 15 days | |
Weighted Average Committed Loan Balance to Value | 75.30% | 7,380% | |
Mortgage Loans Receivable | Renovation | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Carrying Value | $ 259,994 | $ 188,552 | |
% of Portfolio | 12.60% | 12.40% | |
Loan Count | loan | 354 | 346 | |
% of Portfolio | 21.10% | 23.60% | |
Weighted Average Yield | 8.30% | 8.10% | |
Weighted Average Original Life (Months) | 13 months | 13 months 13 days | |
Weighted Average Committed Loan Balance to Value, LTC | 78% | 78.50% | |
Weighted Average Committed Loan Balance to Value, LTARV | 66.10% | 78.50% |
MORTGAGE LOANS RECEIVABLE - Sch
MORTGAGE LOANS RECEIVABLE - Schedule of Mortgage Loans Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable [Roll Forward] | ||
Beginning balance | $ 290,180 | $ 52,389 |
Paydowns and payoffs | (152,256) | (28,631) |
Changes in instrument-specific credit risk | 63,062 | 0 |
Other factors | (1,397) | 301 |
Ending balance | 94,401 | 290,180 |
Mortgage Loans Receivable | ||
Financing Receivable [Roll Forward] | ||
Beginning balance | 1,515,762 | 0 |
Genesis acquisition (Note 3) | 1,505,635 | |
Initial loan advances | 1,438,117 | 60,125 |
Construction holdbacks and draws | 559,294 | 12,856 |
Paydowns and payoffs | (1,405,278) | (60,867) |
Changes in instrument-specific credit risk | 0 | |
Other factors | (1,987) | |
Purchased loans premium amortization | (43,867) | |
Ending balance | $ 2,064,028 | $ 1,515,762 |
MORTGAGE LOANS RECEIVABLE - Pas
MORTGAGE LOANS RECEIVABLE - Past Due Mortgage Loans Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
90+ | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | $ 0 | $ 0 |
Fair Value | 0 | 0 |
Fair Value Over (Under) UPB | 0 | 0 |
Mortgage Loans Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 2,064,028 | 1,473,894 |
Fair Value | 2,064,028 | 1,515,762 |
Fair Value Over (Under) UPB | 0 | 41,868 |
Mortgage Loans Receivable | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 2,064,028 | 1,473,894 |
Fair Value | 2,064,028 | 1,515,762 |
Fair Value Over (Under) UPB | 0 | 41,868 |
Mortgage Loans Receivable | 90+ | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 0 | 0 |
Fair Value | 0 | 0 |
Fair Value Over (Under) UPB | $ 0 | $ 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 | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 100% | 100% |
California | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 52.70% | 58.90% |
Washington | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 10.20% | 12.20% |
New York | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 5.90% | 5.60% |
Other U.S. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 31.20% | 23.30% |
CASH, CASH EQUIVALENTS AND RE_3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | [1] | $ 281,126 | $ 195,867 |
MSRs and servicer advances | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | 69,347 | 27,182 | |
Real estate and other securities | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | 4,604 | 15,342 | |
Consumer loans | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | 15,930 | 21,961 | |
SFR properties | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | 4,627 | 2,482 | |
Origination and servicing | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | 161,249 | 128,588 | |
Mortgage Loans Receivable | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | 25,369 | 0 | |
Other | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | $ 0 | $ 312 | |
[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 December 31, 2022, and December 31, 2021, total assets of consolidated VIEs were $2.3 billion and $2.8 billion, respectively, and total liabilities of consolidated VIEs were $1.8 billion and $2.1 billion, respectively. See Note 21 for further details. |
CASH, CASH EQUIVALENTS AND RE_4
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Summary of Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |||||
Cash and cash equivalents | [1] | $ 1,336,508 | $ 1,332,575 | ||
Restricted cash | [1] | 281,126 | 195,867 | ||
Total cash, cash equivalents and restricted cash | $ 1,617,634 | $ 1,528,442 | $ 1,080,473 | $ 690,934 | |
[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 December 31, 2022, and December 31, 2021, total assets of consolidated VIEs were $2.3 billion and $2.8 billion, respectively, and total liabilities of consolidated VIEs were $1.8 billion and $2.1 billion, respectively. See Note 21 for further details. |
OTHER ASSETS AND LIABILITIES -
OTHER ASSETS AND LIABILITIES - Schedule of Other Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income Assets And Liabilities | ||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Total other assets | Total other assets | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Total accrued expenses and other liabilities | Total accrued expenses and other liabilities | ||
Other Assets | ||||
Margin receivable, net | $ 20,614 | $ 358,041 | ||
Excess MSRs, at fair value (Note 5) | 321,803 | 344,947 | ||
Servicer advance investments, at fair value (Note 6) | 398,820 | 421,807 | ||
Servicing fee receivables | 128,438 | 117,935 | ||
Principal and interest receivable | 106,608 | 85,084 | ||
Equity investments | 71,388 | 81,052 | ||
Other receivables | 146,131 | 233,342 | ||
REO | 19,379 | 21,641 | ||
Goodwill | 85,199 | 85,199 | $ 29,468 | |
Notes receivable, at fair value | 0 | 60,549 | ||
Warrants, at fair value | 19,346 | 27,354 | ||
Property and equipment | 37,883 | 56,617 | ||
Intangible assets | 141,413 | 143,133 | ||
Prepaid expenses | 60,817 | 115,110 | ||
Operating lease right-of-use assets (Note 17) | 77,329 | 117,131 | ||
Derivative assets | 52,229 | 138,173 | ||
Loans receivable, at fair value | 94,401 | 229,631 | ||
Credit facilities receivable | 7,095 | 41,351 | ||
Loans in process and settlements in process | 8,849 | 11,681 | ||
Other assets | 116,865 | 105,728 | ||
Total other assets | [1] | 1,914,607 | 2,795,506 | |
Accrued Expenses and Other Liabilities | ||||
Margin payable | 4,852 | 9,821 | ||
Interest payable | 87,700 | 30,931 | ||
Accounts payable | 155,492 | 345,901 | ||
Derivative liabilities (Note 18) | 18,064 | 34,583 | ||
Accrued compensation and benefits | 112,762 | 201,057 | ||
Operating lease liabilities (Note 17) | 101,225 | 142,620 | ||
Deferred tax liability | 711,855 | 440,690 | ||
Other liabilities | 294,717 | 153,165 | ||
Total accrued expenses and other liabilities | [1] | $ 1,486,667 | $ 1,358,768 | |
[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 December 31, 2022, and December 31, 2021, total assets of consolidated VIEs were $2.3 billion and $2.8 billion, respectively, and total liabilities of consolidated VIEs were $1.8 billion and $2.1 billion, respectively. See Note 21 for further details. |
OTHER ASSETS AND LIABILITIES _2
OTHER ASSETS AND LIABILITIES - Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Real Estate Owned [Roll Forward] | ||
Beginning balance | $ 21,641 | $ 45,299 |
Purchases | 210 | 2,464 |
Transfer of loans to REO | 14,936 | 30,015 |
Sales | (18,349) | (60,407) |
Valuation (provision) reversal | 941 | 4,270 |
Ending balance | 19,379 | $ 21,641 |
Residential Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | $ 75,900 |
OTHER ASSETS AND LIABILITIES _3
OTHER ASSETS AND LIABILITIES - Schedule of Notes and Loans Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable [Roll Forward] | ||
Beginning balance | $ 290,180 | $ 52,389 |
Fundings | 9,000 | 256,688 |
Payment in Kind | 12,936 | 9,433 |
Proceeds from repayments | (152,256) | (28,631) |
Transfer to other assets | (1,000) | |
Changes in instrument-specific credit risk | (63,062) | 0 |
Other factors | (1,397) | 301 |
Ending balance | 94,401 | 290,180 |
Notes Receivable | ||
Financing Receivable [Roll Forward] | ||
Beginning balance | 60,549 | 52,389 |
Fundings | 9,000 | 6,688 |
Payment in Kind | 3,741 | 5,298 |
Proceeds from repayments | (9,000) | (3,188) |
Transfer to other assets | (1,000) | |
Changes in instrument-specific credit risk | (63,062) | 0 |
Other factors | (228) | (638) |
Ending balance | 0 | 60,549 |
Loans Receivable | ||
Financing Receivable [Roll Forward] | ||
Beginning balance | 229,631 | 0 |
Fundings | 0 | 250,000 |
Payment in Kind | 9,195 | 4,135 |
Proceeds from repayments | (143,256) | (25,443) |
Transfer to other assets | 0 | |
Changes in instrument-specific credit risk | 0 | 0 |
Other factors | (1,169) | 939 |
Ending balance | $ 94,401 | $ 229,631 |
OTHER ASSETS AND LIABILITIES _4
OTHER ASSETS AND LIABILITIES - Past Due Notes and Loans Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current | ||
Servicing Assets at Fair Value [Line Items] | ||
UPB | $ 157,745 | $ 289,065 |
Fair Value | 94,401 | 290,180 |
Fair Value Over (Under) UPB | (63,344) | 1,115 |
90+ | ||
Servicing Assets at Fair Value [Line Items] | ||
UPB | 0 | 0 |
Fair Value | 0 | 0 |
Fair Value Over (Under) UPB | $ 0 | $ 0 |
EXPENSES, CHANGES IN FAIR VAL_3
EXPENSES, CHANGES IN FAIR VALUE OF INVESTMENTS AND OTHER - Schedule of General and Administrative Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |||
Legal and professional | $ 78,837 | $ 102,114 | $ 70,502 |
Loan origination | 108,149 | 196,989 | 92,081 |
Occupancy | 116,526 | 70,616 | 36,799 |
Subservicing | 162,972 | 224,138 | 201,444 |
Loan servicing | 11,759 | 16,440 | 14,126 |
Property and maintenance | 93,689 | 69,083 | 42,508 |
Other | 303,496 | 184,648 | 90,981 |
General and administrative | $ 875,428 | $ 864,028 | $ 548,441 |
EXPENSES, CHANGES IN FAIR VAL_4
EXPENSES, CHANGES IN FAIR VALUE OF INVESTMENTS AND OTHER - Schedule of Change in Fair Value of Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |||
Real estate and other securities | $ 235,591 | $ (400,369) | $ 28,455 |
Residential mortgage loans | (173,644) | 155,758 | (107,604) |
Derivative instruments | 1,094,467 | 298,803 | (53,467) |
Other | (48,124) | (42,469) | (16,142) |
Change in fair value of investments | $ 1,108,290 | $ 11,723 | $ (148,758) |
EXPENSES, CHANGES IN FAIR VAL_5
EXPENSES, CHANGES IN FAIR VALUE OF INVESTMENTS AND OTHER - Schedule of Gain (Loss) on Settlement of Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |||
Gain (loss) on sale of real estate securities | $ (1,735,009) | $ (89,811) | $ (753,713) |
Sale of acquired residential mortgage loans | 55,298 | 120,680 | (5,662) |
Settlement of derivatives | 374,464 | (172,581) | (74,812) |
Liquidated residential mortgage loans | (42,639) | (5,946) | 4,644 |
Sale of REO | (4,148) | (6,622) | (21,925) |
Extinguishment of debt | 0 | (1,485) | (66,233) |
Other | (7,645) | (78,796) | (12,430) |
Gain (loss) on settlement of investments, net | $ (1,359,679) | $ (234,561) | $ (930,131) |
EXPENSES, CHANGES IN FAIR VAL_6
EXPENSES, CHANGES IN FAIR VALUE OF INVESTMENTS AND OTHER - Schedule of Other Income (Loss), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |||
Unrealized gain (loss) on secured notes and bonds payable | $ 45,792 | $ 12,991 | $ (966) |
Rental revenue | 54,567 | 13,750 | 2,422 |
Property and maintenance revenue | 132,432 | 104,797 | 70,527 |
(Provision) reversal for credit losses on securities | (7,345) | 5,201 | (13,404) |
Valuation and credit loss (provision) reversal on loans and real estate owned | (7,617) | 42,543 | (110,208) |
Other income (loss) | (86,517) | 2,430 | (83,980) |
Other income (loss), net | $ 131,312 | $ 181,712 | $ (135,609) |
EXPENSES, CHANGES IN FAIR VAL_7
EXPENSES, CHANGES IN FAIR VALUE OF INVESTMENTS AND OTHER - Schedule of Accretion and Other Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income [Line Items] | |||
Accretion of net discount on securities and loans | $ 29,023 | $ 32,670 | $ 96,148 |
Accretion of servicer advances receivable discount and investments | 42,006 | 1,822 | 55,664 |
Accretion of excess mortgage servicing rights income | 38,036 | 30,855 | 28,352 |
Amortization of deferred financing costs | (15,427) | (14,174) | (22,733) |
Total accretion and other amortization | 91,891 | 49,382 | 151,540 |
Secured Notes And Bonds Payable | |||
Other Income [Line Items] | |||
Amortization of discount | 0 | (13) | (388) |
Corporate Debt | |||
Other Income [Line Items] | |||
Amortization of discount | $ (1,747) | $ (1,778) | $ (5,503) |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Carrying Value of Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 85,199,000 | $ 29,468,000 |
Goodwill acquired | 0 | 55,731,000 |
Accumulated impairment loss | 0 | 0 |
Ending balance | 85,199,000 | 85,199,000 |
Origination | ||
Goodwill [Roll Forward] | ||
Beginning balance | 11,836,000 | 11,836,000 |
Goodwill acquired | 0 | 0 |
Accumulated impairment loss | 0 | 0 |
Ending balance | 11,836,000 | 11,836,000 |
Servicing | ||
Goodwill [Roll Forward] | ||
Beginning balance | 12,540,000 | 12,540,000 |
Goodwill acquired | 0 | 0 |
Accumulated impairment loss | 0 | 0 |
Ending balance | 12,540,000 | 12,540,000 |
MSR Related Investments | ||
Goodwill [Roll Forward] | ||
Beginning balance | 5,092,000 | 5,092,000 |
Goodwill acquired | 0 | 0 |
Accumulated impairment loss | 0 | 0 |
Ending balance | 5,092,000 | 5,092,000 |
Mortgage Loans Receivable | ||
Goodwill [Roll Forward] | ||
Beginning balance | 55,731,000 | 0 |
Goodwill acquired | 0 | 55,731,000 |
Accumulated impairment loss | 0 | 0 |
Ending balance | $ 55,731,000 | $ 55,731,000 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 188,995 | $ 161,449 |
Accumulated Amortization | 47,582 | 18,316 |
Intangible Assets, Net | 141,413 | 143,133 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 57,949 | 57,949 |
Accumulated Amortization | 12,960 | 6,574 |
Intangible Assets, Net | 44,989 | 51,375 |
Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 120,787 | 93,241 |
Accumulated Amortization | 30,959 | 10,578 |
Intangible Assets, Net | 89,828 | 82,663 |
Indefinite-lived intangible assets | 21,400 | 21,400 |
Trademarks/trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 10,259 | 10,259 |
Accumulated Amortization | 3,663 | 1,164 |
Intangible Assets, Net | 6,596 | 9,095 |
Indefinite-lived intangible assets | $ 1,900 | $ 1,900 |
Minimum | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 3 years | |
Minimum | Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 3 years | |
Minimum | Trademarks/trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 1 year | |
Maximum | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 9 years | |
Maximum | Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 7 years | |
Maximum | Trademarks/trade names | ||
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 | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 29,529 |
2024 | 27,101 |
2025 | 20,476 |
2026 | 16,164 |
2027 and thereafter | 24,902 |
Intangible assets, net | $ 118,172 |
OPERATING LEASES - Narrative (D
OPERATING LEASES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Rent expense, net of sublease income | $ 45.2 | $ 26.1 | $ 13.5 |
Sublease rentals | $ 8.5 |
OPERATING LEASES - Schedule of
OPERATING LEASES - Schedule of Future Commitments for Non-Cancelable Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 29,631 | |
2024 | 22,767 | |
2025 | 16,930 | |
2026 | 10,480 | |
2027 | 8,630 | |
2028 and thereafter | 25,783 | |
Total remaining undiscounted lease payments | 114,221 | |
Less: imputed interest | 12,996 | |
Total remaining discounted lease payments | $ 101,225 | $ 142,620 |
OPERATING LEASES - Other Inform
OPERATING LEASES - Other Information Related to Operating Leases (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 5 years 8 months 12 days | 5 years 6 months |
Weighted-average discount rate | 4% | 4.10% |
DERIVATIVES - Derivatives Recor
DERIVATIVES - Derivatives Recorded at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative assets | $ 52,229 | $ 138,173 |
Derivative liabilities | 18,064 | 34,583 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative assets | 449 | 52 |
Derivative asset, variation margin accounts | 1,200,000 | 60,700 |
Interest rate lock commitments | ||
Derivative [Line Items] | ||
Derivative assets | 16,015 | 114,871 |
Derivative liabilities | 7,229 | 3,093 |
Options on treasury futures | ||
Derivative [Line Items] | ||
Derivative assets | 0 | 7,778 |
TBAs | ||
Derivative [Line Items] | ||
Derivative assets | 35,765 | 15,472 |
Derivative liabilities | $ 10,835 | $ 31,490 |
DERIVATIVES - Derivatives Notio
DERIVATIVES - Derivatives Notional Amount (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 23,085,000 | $ 11,490,000 |
Interest rate swaps | Short | ||
Derivative [Line Items] | ||
Notional amount | $ 0 | $ 0 |
Derivative, cap interest rate | 0% | 0% |
Weighted average maturity | 0 months | 0 months |
Interest rate swaps | Long | ||
Derivative [Line Items] | ||
Notional amount | $ 23,100,000 | $ 11,500,000 |
Derivative, cap interest rate | 1.90% | 1.10% |
Weighted average maturity | 35 months | 42 months |
Interest rate lock commitments | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 2,647,747 | $ 10,653,850 |
TBAs | Short | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | 8,473,221 | 22,697,706 |
TBAs | Long | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | 31,500 | 0 |
Treasury futures | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | 0 | 314,500 |
Options on treasury futures | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 0 | $ 3,200,000 |
DERIVATIVES - Gain (Losses) (De
DERIVATIVES - Gain (Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Total gain (loss) | $ 1,380,323 | $ (79,394) | $ 5,688 |
Settlement of derivatives | 374,464 | (172,581) | (74,812) |
Gain (loss) on settlement of residential mortgage loan origination derivative instruments | 1,285,219 | 240,610 | (361,755) |
Servicing Revenue | |||
Derivative [Line Items] | |||
Total gain (loss) | (11,316) | (30,481) | $ 0 |
Settlement of derivatives | $ (79,000) | $ (34,700) | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Contractually Specified Servicing Fee, Late Fee, and Ancillary Fee Earned in Exchange for Servicing Financial Asset, Net Of Change In Fair Value | Contractually Specified Servicing Fee, Late Fee, and Ancillary Fee Earned in Exchange for Servicing Financial Asset, Net Of Change In Fair Value | Contractually Specified Servicing Fee, Late Fee, and Ancillary Fee Earned in Exchange for Servicing Financial Asset, Net Of Change In Fair Value |
Gain On Originated Residential Mortgage Loans, Held For Sale, Net | |||
Derivative [Line Items] | |||
Total gain (loss) | $ (77,292) | $ (175,135) | $ 133,967 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain on originated residential mortgage loans, held-for-sale, net | Gain on originated residential mortgage loans, held-for-sale, net | Gain on originated residential mortgage loans, held-for-sale, net |
Change In Fair Value Of Investments | |||
Derivative [Line Items] | |||
Total gain (loss) | $ 1,094,467 | $ 298,803 | $ (53,467) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Change in fair value of investments | Change in fair value of investments | Change in fair value of investments |
Gain (Loss) On Settlement Of Investments, Net | |||
Derivative [Line Items] | |||
Total gain (loss) | $ 374,464 | $ (172,581) | $ (74,812) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (loss) on settlement of investments, net | Gain (loss) on settlement of investments, net | Gain (loss) on settlement of investments, net |
TBAs | Servicing Revenue | |||
Derivative [Line Items] | |||
Total gain (loss) | $ (15,205) | $ 10,483 | $ 0 |
TBAs | Gain On Originated Residential Mortgage Loans, Held For Sale, Net | |||
Derivative [Line Items] | |||
Total gain (loss) | 25,700 | 118,564 | (115,243) |
TBAs | Change In Fair Value Of Investments | |||
Derivative [Line Items] | |||
Total gain (loss) | 29,506 | 0 | 0 |
TBAs | Gain (Loss) On Settlement Of Investments, Net | |||
Derivative [Line Items] | |||
Total gain (loss) | 279,648 | (36,508) | (72,127) |
Treasury futures | |||
Derivative [Line Items] | |||
Total gain (loss) | (1,746) | (23,961) | 0 |
Options on treasury futures | |||
Derivative [Line Items] | |||
Total gain (loss) | 5,635 | (17,003) | 0 |
Interest rate lock commitments | |||
Derivative [Line Items] | |||
Total gain (loss) | (102,992) | (293,699) | 249,183 |
Forward Loan Sale Commitments | |||
Derivative [Line Items] | |||
Total gain (loss) | 0 | 0 | 27 |
Interest rate swaps | Change In Fair Value Of Investments | |||
Derivative [Line Items] | |||
Total gain (loss) | 1,064,961 | 298,803 | (53,467) |
Interest rate swaps | Gain (Loss) On Settlement Of Investments, Net | |||
Derivative [Line Items] | |||
Total gain (loss) | $ 94,816 | $ (136,073) | $ (2,685) |
DEBT OBLIGATIONS - Schedule of
DEBT OBLIGATIONS - Schedule of Debt Obligations (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 21,460,632,000 | ||
Carrying Value | $ 21,356,679,000 | $ 29,237,694,000 | $ 25,191,875,000 |
Weighted Average Funding Cost | 5.10% | ||
Weighted Average Life (Years) | 1 year 2 months 12 days | ||
Outstanding Face | $ 631,214,506,000 | ||
Amortized Cost Basis | 25,561,811,000 | ||
Carrying Value | 27,612,511,000 | ||
MSR purchase price holdback | 87,700,000 | 30,931,000 | |
Secured Financing Agreements | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 11,260,242,000 | ||
Carrying Value | $ 11,257,736,000 | 20,592,884,000 | |
Weighted Average Funding Cost | 5% | ||
Weighted Average Life (Years) | 4 months 24 days | ||
MSR purchase price holdback | $ 80,500,000 | ||
Secured Notes And Bonds Payable | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 10,200,390,000 | ||
Carrying Value | $ 10,098,943,000 | 8,644,810,000 | |
Weighted Average Funding Cost | 5.20% | ||
Weighted Average Life (Years) | 2 years 2 months 12 days | ||
Warehouse Credit Facilities-Residential Mortgage Loans | Warehouse Credit Facilities | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 2,603,833,000 | ||
Carrying Value | $ 2,601,327,000 | 10,138,297,000 | |
Weighted Average Funding Cost | 5.90% | ||
Weighted Average Life (Years) | 9 months 18 days | ||
Repurchase agreements | $ 278,600,000 | ||
Interest rate, stated percentage | 5.10% | ||
Warehouse Credit Facilities-Residential Mortgage Loans | Warehouse Credit Facilities | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 21 years 3 months 18 days | ||
Outstanding Face | $ 3,187,716,000 | ||
Amortized Cost Basis | 3,114,791,000 | ||
Carrying Value | 3,020,575,000 | ||
Warehouse Credit Facility- Mortgage Loans Receivable | Warehouse Credit Facilities | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 1,220,662,000 | ||
Carrying Value | $ 1,220,662,000 | 1,252,660,000 | |
Weighted Average Funding Cost | 6.90% | ||
Weighted Average Life (Years) | 7 months 6 days | ||
Warehouse Credit Facility- Mortgage Loans Receivable | Warehouse Credit Facilities | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 9 months 18 days | ||
Outstanding Face | $ 1,451,279,000 | ||
Amortized Cost Basis | 1,451,279,000 | ||
Carrying Value | 1,451,279,000 | ||
Agency RMBS | Secured Financing Agreements | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 6,821,788,000 | ||
Carrying Value | $ 6,821,788,000 | 8,386,538,000 | |
Weighted Average Funding Cost | 4.10% | ||
Weighted Average Life (Years) | 1 month 6 days | ||
Agency RMBS | Secured Financing Agreements | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 8 years 6 months | ||
Outstanding Face | $ 7,213,920,000 | ||
Amortized Cost Basis | 7,082,133,000 | ||
Carrying Value | 7,123,127,000 | ||
Non-Agency RMBS | Secured Financing Agreements | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 609,282,000 | ||
Carrying Value | $ 609,282,000 | 656,874,000 | |
Weighted Average Funding Cost | 6.50% | ||
Weighted Average Life (Years) | 1 year 1 month 6 days | ||
Non-Agency RMBS | Secured Financing Agreements | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 7 years 1 month 6 days | ||
Outstanding Face | $ 14,824,678,000 | ||
Amortized Cost Basis | 946,631,000 | ||
Carrying Value | 946,197,000 | ||
SFR properties | |||
Debt Instrument [Line Items] | |||
Carrying Value | 822,372,000 | 357,922,000 | 5,586,000 |
SFR properties | Secured Financing Agreements | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 4,677,000 | ||
Carrying Value | $ 4,677,000 | 158,515,000 | |
Weighted Average Funding Cost | 7.10% | ||
Weighted Average Life (Years) | 2 years | ||
SFR properties | Secured Financing Agreements | Collateral | |||
Debt Instrument [Line Items] | |||
Amortized Cost Basis | $ 7,765,000 | ||
Carrying Value | 7,765,000 | ||
SFR properties | Secured Notes And Bonds Payable | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 863,029,000 | ||
Carrying Value | $ 817,695,000 | 199,407,000 | |
Weighted Average Funding Cost | 3.60% | ||
Weighted Average Life (Years) | 3 years 9 months 18 days | ||
SFR properties | Secured Notes And Bonds Payable | Collateral | |||
Debt Instrument [Line Items] | |||
Amortized Cost Basis | $ 963,547,000 | ||
Carrying Value | 963,547,000 | ||
Excess MSRs | |||
Debt Instrument [Line Items] | |||
Carrying Value | 227,596,000 | 237,835,000 | 275,088,000 |
Excess MSRs | Secured Notes And Bonds Payable | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 227,596,000 | ||
Carrying Value | $ 227,596,000 | 237,835,000 | |
Weighted Average Funding Cost | 3.70% | ||
Weighted Average Life (Years) | 2 years 7 months 6 days | ||
Excess MSRs | Secured Notes And Bonds Payable | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 6 years 1 month 6 days | ||
Outstanding Face | $ 67,454,370,000 | ||
Amortized Cost Basis | 260,828,000 | ||
Carrying Value | 317,146,000 | ||
MSRs | Secured Notes And Bonds Payable | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 4,800,001,000 | ||
Carrying Value | $ 4,791,543,000 | 4,234,771,000 | |
Weighted Average Funding Cost | 6.10% | ||
Weighted Average Life (Years) | 2 years 4 months 24 days | ||
MSRs | Secured Notes And Bonds Payable | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 6 years 10 months 24 days | ||
Outstanding Face | $ 532,218,484,000 | ||
Amortized Cost Basis | 6,811,636,000 | ||
Carrying Value | 8,833,825,000 | ||
Servicer Advance Investments | Secured Notes And Bonds Payable | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 319,276,000 | ||
Carrying Value | $ 318,445,000 | 355,722,000 | |
Weighted Average Funding Cost | 6.50% | ||
Weighted Average Life (Years) | 1 year 2 months 12 days | ||
Servicer Advance Investments | Secured Notes And Bonds Payable | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 8 years 4 months 24 days | ||
Outstanding Face | $ 341,628,000 | ||
Amortized Cost Basis | 392,749,000 | ||
Carrying Value | $ 398,820,000 | ||
Servicer Advances | LIBOR | Secured Notes And Bonds Payable | Minimum | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 1.20% | ||
Servicer Advances | LIBOR | Secured Notes And Bonds Payable | Maximum | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 3.30% | ||
Servicer Advances | Secured Notes And Bonds Payable | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 2,364,757,000 | ||
Carrying Value | $ 2,361,259,000 | 2,355,969,000 | |
Weighted Average Funding Cost | 4.10% | ||
Weighted Average Life (Years) | 1 year 1 month 6 days | ||
Face amount of fixed rate debt | $ 1,200,000,000 | ||
Servicer Advances | Secured Notes And Bonds Payable | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 8 months 12 days | ||
Outstanding Face | $ 2,847,234,000 | ||
Amortized Cost Basis | 2,825,485,000 | ||
Carrying Value | 2,825,485,000 | ||
Residential Mortgage Loans | Secured Notes And Bonds Payable | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 770,897,000 | ||
Carrying Value | $ 769,988,000 | 802,526,000 | |
Weighted Average Funding Cost | 5.40% | ||
Weighted Average Life (Years) | 1 year 10 months 24 days | ||
Residential Mortgage Loans | Secured Notes And Bonds Payable | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 28 years 6 months | ||
Outstanding Face | $ 775,314,000 | ||
Amortized Cost Basis | 791,534,000 | ||
Carrying Value | 791,534,000 | ||
Consumer Loans | |||
Debt Instrument [Line Items] | |||
Carrying Value | 299,498,000 | 458,580,000 | 628,759,000 |
Consumer Loans | Secured Notes And Bonds Payable | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 330,772,000 | ||
Carrying Value | $ 299,498,000 | 458,580,000 | |
Weighted Average Funding Cost | 2.10% | ||
Weighted Average Life (Years) | 3 years 3 months 18 days | ||
Consumer Loans | Secured Notes And Bonds Payable | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 3 years 6 months | ||
Outstanding Face | $ 330,397,000 | ||
Amortized Cost Basis | 343,947,000 | ||
Carrying Value | 363,725,000 | ||
Mortgage Loans Receivable | |||
Debt Instrument [Line Items] | |||
Carrying Value | 1,733,581,000 | 1,252,660,000 | $ 0 |
Mortgage Loans Receivable | Secured Notes And Bonds Payable | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 524,062,000 | ||
Carrying Value | $ 512,919,000 | $ 0 | |
Weighted Average Funding Cost | 5.40% | ||
Weighted Average Life (Years) | 3 years 9 months 18 days | ||
Mortgage Loans Receivable | Secured Notes And Bonds Payable | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 7 months 6 days | ||
Outstanding Face | $ 569,486,000 | ||
Amortized Cost Basis | 569,486,000 | ||
Carrying Value | 569,486,000 | ||
3.7% Secured Corporate Note | Secured Notes And Bonds Payable | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 227,600,000 | ||
3.7% Secured Corporate Note | Secured Notes And Bonds Payable | LIBOR | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 3.70% | ||
2.5% - 3.3% Agency MSR Secured Note And Bond Payable | LIBOR | Secured Notes And Bonds Payable | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 3,000,000,000 | ||
2.5% - 3.3% Agency MSR Secured Note And Bond Payable | LIBOR | Secured Notes And Bonds Payable | Minimum | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 2.50% | ||
2.5% - 3.3% Agency MSR Secured Note And Bond Payable | LIBOR | Secured Notes And Bonds Payable | Maximum | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 3.30% | ||
3.0% To 5.4% Public Notes | Secured Notes And Bonds Payable | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 1,800,000,000 | ||
3.0% To 5.4% Public Notes | Secured Notes And Bonds Payable | Minimum | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 3% | ||
3.0% To 5.4% Public Notes | Secured Notes And Bonds Payable | Maximum | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 5.40% | ||
3.7% Asset-Backed Notes | Secured Notes And Bonds Payable | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 20,900,000 | ||
3.7% Asset-Backed Notes | Secured Notes And Bonds Payable | Maximum | |||
Debt Instrument [Line Items] | |||
Weighted Average Funding Cost | 3.70% | ||
Revolving Warehouse Facility Backed Securitization | Secured Notes And Bonds Payable | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 750,000,000 | ||
Revolving Warehouse Facility Backed Securitization | Secured Notes And Bonds Payable | LIBOR | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 1.10% | ||
Consumer Loan, UPB Class A | Secured Notes And Bonds Payable | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 2% | ||
Unpaid Principal Balance | $ 277,700,000 | ||
Consumer Loan, UPB Class B | Secured Notes And Bonds Payable | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 2.70% | ||
Unpaid Principal Balance | $ 53,000,000 |
DEBT OBLIGATIONS - Narrative (D
DEBT OBLIGATIONS - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Sep. 16, 2020 USD ($) | Dec. 31, 2022 USD ($) agreement | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 21,460,632 | |||
Interest expense | 791,001 | $ 497,308 | $ 584,469 | |
Secured Financing Agreements | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | 11,260,242 | |||
Borrowings | 130,455,309 | $ 195,904,761 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Issuance fees | 4,900 | |||
Interest expense | $ 34,400 | |||
Senior Notes | 2025 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 550,000 | |||
Interest rate | 6.25% | |||
Redemption maximum principal amount percentage | 0.40 | |||
Debt redemption percentage | 106.25% | 101% | ||
Borrowings | $ 544,500 | |||
Issuance fees | $ 8,300 | |||
Debt instrument, restrictive covenants, minimum total unencumbered assets maintenance requirement | 1.20 | |||
Stockholders' Equity | Counterpary Concentration Risk Exceeding 10% | Secured Financing Agreements | ||||
Debt Instrument [Line Items] | ||||
Number of outstanding repurchase agreements | agreement | 0 |
DEBT OBLIGATIONS - Carrying Val
DEBT OBLIGATIONS - Carrying Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Roll Forward] | ||
Beginning balance | $ 29,237,694 | $ 25,191,875 |
Ending balance | 21,356,679 | 29,237,694 |
Excess MSRs | ||
Debt Instrument [Roll Forward] | ||
Beginning balance | 237,835 | 275,088 |
Ending balance | 227,596 | 237,835 |
MSRs | ||
Debt Instrument [Roll Forward] | ||
Beginning balance | 4,234,771 | 2,691,791 |
Ending balance | 4,791,543 | 4,234,771 |
Servicer advances | ||
Debt Instrument [Roll Forward] | ||
Beginning balance | 2,711,691 | 3,008,719 |
Ending balance | 2,679,704 | 2,711,691 |
Real Estate Securities | ||
Debt Instrument [Roll Forward] | ||
Beginning balance | 9,043,412 | 13,499,636 |
Ending balance | 7,431,070 | 9,043,412 |
Residential mortgage loans and REO | ||
Debt Instrument [Roll Forward] | ||
Beginning balance | 10,940,823 | 5,082,296 |
Ending balance | 3,371,315 | 10,940,823 |
Consumer Loans | ||
Debt Instrument [Roll Forward] | ||
Beginning balance | 458,580 | 628,759 |
Ending balance | 299,498 | 458,580 |
SFR properties | ||
Debt Instrument [Roll Forward] | ||
Beginning balance | 357,922 | 5,586 |
Ending balance | 822,372 | 357,922 |
Mortgage Loans Receivable | ||
Debt Instrument [Roll Forward] | ||
Beginning balance | 1,252,660 | 0 |
Ending balance | 1,733,581 | 1,252,660 |
Secured Financing Agreements | ||
Debt Instrument [Roll Forward] | ||
Beginning balance | 20,592,884 | |
Acquired borrowings, net of discount | 7,090,577 | |
Borrowings | 130,455,309 | 195,904,761 |
Repayments | (139,791,583) | (199,951,591) |
Capitalized deferred financing costs, net of amortization | 1,128 | 1,457 |
Ending balance | 11,257,736 | 20,592,884 |
Secured Financing Agreements | Excess MSRs | ||
Debt Instrument [Roll Forward] | ||
Acquired borrowings, net of discount | 0 | |
Borrowings | 0 | 0 |
Repayments | 0 | 0 |
Capitalized deferred financing costs, net of amortization | 0 | 0 |
Secured Financing Agreements | MSRs | ||
Debt Instrument [Roll Forward] | ||
Acquired borrowings, net of discount | 0 | |
Borrowings | 0 | 0 |
Repayments | 0 | 0 |
Capitalized deferred financing costs, net of amortization | 0 | 0 |
Secured Financing Agreements | Servicer advances | ||
Debt Instrument [Roll Forward] | ||
Acquired borrowings, net of discount | 0 | |
Borrowings | 0 | 0 |
Repayments | 0 | 0 |
Capitalized deferred financing costs, net of amortization | 0 | 0 |
Secured Financing Agreements | Real Estate Securities | ||
Debt Instrument [Roll Forward] | ||
Acquired borrowings, net of discount | 0 | |
Borrowings | 54,385,892 | 64,749,425 |
Repayments | (55,998,234) | (69,206,600) |
Capitalized deferred financing costs, net of amortization | 0 | 951 |
Secured Financing Agreements | Residential mortgage loans and REO | ||
Debt Instrument [Roll Forward] | ||
Acquired borrowings, net of discount | 7,090,577 | |
Borrowings | 73,782,327 | 129,676,976 |
Repayments | (81,320,424) | (130,719,004) |
Capitalized deferred financing costs, net of amortization | 1,128 | 812 |
Secured Financing Agreements | Consumer Loans | ||
Debt Instrument [Roll Forward] | ||
Acquired borrowings, net of discount | 0 | |
Borrowings | 0 | 0 |
Repayments | 0 | 0 |
Capitalized deferred financing costs, net of amortization | 0 | 0 |
Secured Financing Agreements | SFR properties | ||
Debt Instrument [Roll Forward] | ||
Beginning balance | 158,515 | |
Acquired borrowings, net of discount | 0 | |
Borrowings | 206,595 | 199,713 |
Repayments | (360,433) | 0 |
Capitalized deferred financing costs, net of amortization | 0 | (306) |
Ending balance | 4,677 | 158,515 |
Secured Financing Agreements | Mortgage Loans Receivable | ||
Debt Instrument [Roll Forward] | ||
Acquired borrowings, net of discount | 0 | |
Borrowings | 2,080,495 | 1,278,647 |
Repayments | (2,112,492) | (25,987) |
Capitalized deferred financing costs, net of amortization | 0 | 0 |
Secured Notes and Bonds Payable | ||
Debt Instrument [Roll Forward] | ||
Acquired borrowings, net of discount | 1,121,772 | |
Borrowings | 6,236,323 | 7,964,077 |
Repayments | (4,696,138) | (8,078,073) |
Discount on borrowings, net of amortization | (42,030) | |
Unrealized (gain) loss on notes, fair value | (45,791) | (12,991) |
Capitalized deferred financing costs, net of amortization | 1,767 | 5,830 |
Secured Notes and Bonds Payable | Excess MSRs | ||
Debt Instrument [Roll Forward] | ||
Acquired borrowings, net of discount | 0 | |
Borrowings | 0 | 0 |
Repayments | (10,239) | (37,253) |
Discount on borrowings, net of amortization | 0 | |
Unrealized (gain) loss on notes, fair value | 0 | 0 |
Capitalized deferred financing costs, net of amortization | 0 | 0 |
Secured Notes and Bonds Payable | MSRs | ||
Debt Instrument [Roll Forward] | ||
Acquired borrowings, net of discount | 1,045,000 | |
Borrowings | 2,027,637 | 4,042,325 |
Repayments | (1,473,037) | (3,549,148) |
Discount on borrowings, net of amortization | 0 | |
Unrealized (gain) loss on notes, fair value | 0 | 0 |
Capitalized deferred financing costs, net of amortization | 2,172 | 4,803 |
Secured Notes and Bonds Payable | Servicer advances | ||
Debt Instrument [Roll Forward] | ||
Acquired borrowings, net of discount | 76,772 | |
Borrowings | 2,804,677 | 2,971,974 |
Repayments | (2,839,257) | (3,346,873) |
Discount on borrowings, net of amortization | 0 | |
Unrealized (gain) loss on notes, fair value | 0 | 0 |
Capitalized deferred financing costs, net of amortization | 2,593 | 1,099 |
Secured Notes and Bonds Payable | Real Estate Securities | ||
Debt Instrument [Roll Forward] | ||
Acquired borrowings, net of discount | 0 | |
Borrowings | 0 | 0 |
Repayments | 0 | 0 |
Discount on borrowings, net of amortization | 0 | |
Unrealized (gain) loss on notes, fair value | 0 | 0 |
Capitalized deferred financing costs, net of amortization | 0 | 0 |
Secured Notes and Bonds Payable | Residential mortgage loans and REO | ||
Debt Instrument [Roll Forward] | ||
Acquired borrowings, net of discount | 0 | |
Borrowings | 0 | 796,849 |
Repayments | (33,204) | (974,176) |
Discount on borrowings, net of amortization | 0 | |
Unrealized (gain) loss on notes, fair value | 665 | (13,435) |
Capitalized deferred financing costs, net of amortization | 0 | (72) |
Secured Notes and Bonds Payable | Consumer Loans | ||
Debt Instrument [Roll Forward] | ||
Acquired borrowings, net of discount | 0 | |
Borrowings | 0 | 0 |
Repayments | (123,770) | (170,623) |
Discount on borrowings, net of amortization | 0 | |
Unrealized (gain) loss on notes, fair value | (35,312) | 444 |
Capitalized deferred financing costs, net of amortization | 0 | 0 |
Secured Notes and Bonds Payable | SFR properties | ||
Debt Instrument [Roll Forward] | ||
Acquired borrowings, net of discount | 0 | |
Borrowings | 879,947 | 152,929 |
Repayments | (216,631) | 0 |
Discount on borrowings, net of amortization | (42,030) | |
Unrealized (gain) loss on notes, fair value | 0 | 0 |
Capitalized deferred financing costs, net of amortization | (2,998) | 0 |
Secured Notes and Bonds Payable | Mortgage Loans Receivable | ||
Debt Instrument [Roll Forward] | ||
Acquired borrowings, net of discount | 0 | |
Borrowings | 524,062 | 0 |
Repayments | 0 | 0 |
Discount on borrowings, net of amortization | 0 | |
Unrealized (gain) loss on notes, fair value | (11,144) | 0 |
Capitalized deferred financing costs, net of amortization | $ 0 | $ 0 |
DEBT OBLIGATIONS - Contractual
DEBT OBLIGATIONS - Contractual Maturities of Debt Obligations (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt maturing in: | |
2023 | $ 12,823,823 |
2024 | 4,009,485 |
2025 | 2,017,629 |
2026 | 1,798,784 |
2027 and thereafter | 1,360,910 |
Total | 22,010,631 |
Nonrecourse | |
Debt maturing in: | |
2023 | 1,359,547 |
2024 | 2,143,523 |
2025 | 0 |
2026 | 0 |
2027 and thereafter | 1,080,910 |
Total | 4,583,980 |
Recourse | |
Debt maturing in: | |
2023 | 11,464,276 |
2024 | 1,865,962 |
2025 | 2,017,629 |
2026 | 1,798,784 |
2027 and thereafter | 280,000 |
Total | 17,426,651 |
Nonrecourse, Secured Notes And Bonds Payable | |
Debt maturing in: | |
Total | 4,600,000 |
Recourse, Secured Financing Agreements | |
Debt maturing in: | |
Total | 11,200,000 |
Recourse, Secured Notes And Bonds Payable | |
Debt maturing in: | |
Total | $ 6,200,000 |
DEBT OBLIGATIONS - Schedule o_2
DEBT OBLIGATIONS - Schedule of Borrowing Capacity (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Residential mortgage loans and REO | |
Debt Instrument [Line Items] | |
Borrowing Capacity | $ 4,284,838 |
Balance Outstanding | 1,978,037 |
Available Financing | 2,306,801 |
Loan originations | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 12,461,331 |
Balance Outstanding | 1,851,134 |
Available Financing | 10,610,197 |
Excess MSRs | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 286,380 |
Balance Outstanding | 227,596 |
Available Financing | 58,784 |
MSRs | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 5,806,207 |
Balance Outstanding | 4,800,001 |
Available Financing | 1,006,207 |
Servicer advances | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 3,245,669 |
Balance Outstanding | 2,684,033 |
Available Financing | 561,636 |
Residential mortgage loans | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 290,714 |
Balance Outstanding | 224,504 |
Available Financing | 66,210 |
Debt Excess Borrowing Capacity | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 26,375,139 |
Balance Outstanding | 11,765,305 |
Available Financing | $ 14,609,835 |
DEBT OBLIGATIONS - Schedule o_3
DEBT OBLIGATIONS - Schedule of Debt Redemption (Details) - 2025 Senior Notes - Senior Notes | 12 Months Ended | |
Sep. 16, 2020 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Debt redemption percentage | 106.25% | 101% |
2022 | ||
Debt Instrument [Line Items] | ||
Debt redemption percentage | 103.125% | |
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 and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Investments in: | |||||||
MSRs and MSR financing receivables | $ 8,889,403 | $ 6,858,803 | $ 4,585,841 | ||||
Real estate and other securities | 8,289,277 | 9,396,539 | |||||
Residential mortgage loans, held-for-sale | 3,398,298 | 11,347,845 | |||||
Residential mortgage loans, held-for-sale, at fair value | 3,297,271 | 11,214,924 | |||||
Residential mortgage loans subject to repurchase | 1,219,890 | [1] | 1,787,314 | [1] | 1,452,005 | ||
Derivative assets | 52,229 | 138,173 | |||||
Restricted cash | 281,126 | 195,867 | |||||
Liabilities: | |||||||
Derivative liabilities | 18,064 | 34,583 | |||||
Total cash, cash equivalents and restricted cash | 1,617,634 | 1,528,442 | 1,080,473 | $ 690,934 | |||
Recurring Basis | |||||||
Investments in: | |||||||
Excess MSRs, principal balance | 67,454,370 | 80,461,630 | |||||
MSRs and MSR financing receivables, principal balance | 539,897,324 | 548,613,089 | |||||
Servicer advance investments, principal balance | 341,628 | 369,440 | |||||
Real estate and other securities, principal balance | 25,370,934 | 24,314,300 | |||||
Residential mortgage loans, held-for-sale, principal balance | 117,847 | 144,967 | |||||
Residential mortgage loans, held for sale, at fair value, principal balance | 3,387,888 | 10,955,534 | |||||
Residential mortgage loans, held-for-investment, at fair value, principal balance | 538,710 | 623,937 | |||||
Residential mortgage loans subject to repurchase, principal balance | 1,219,890 | 1,787,314 | |||||
Consumer loans, principal balance | 330,428 | 449,875 | |||||
Derivative assets, principal balance | 33,174,574 | 47,080,263 | |||||
Mortgage loans receivable, principal balance | 2,064,028 | 1,473,894 | |||||
Notes receivable, principal balance | 63,114 | 60,373 | |||||
Loans receivable, principal balance | 94,631 | 228,692 | |||||
Cash and cash equivalents | 1,336,508 | 1,332,575 | |||||
Restricted cash | 281,126 | 195,867 | |||||
Liabilities: | |||||||
Secured financing agreements, principal balance | 11,260,242 | 20,596,842 | |||||
Secured notes and bonds payable, principal balance | 10,200,390 | 8,676,644 | |||||
Unsecured senior notes, net of issuance costs, principal balance | 545,056 | 543,293 | |||||
Residential mortgage loan repurchase liability, principal balance | 1,219,890 | 1,787,314 | |||||
Derivative liabilities, principal balance | 1,062,894 | 1,275,793 | |||||
Recurring Basis | Mortgage Loans Receivable Securitization | |||||||
Liabilities: | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | 45,800 | $ 20,900 | |||||
Recurring Basis | Asset-Backed Securities Issued | |||||||
Liabilities: | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability value | 632,400 | 511,100 | |||||
Recurring Basis | Level 3 | |||||||
Liabilities: | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | 13,455,778 | 13,425,847 | 10,063,098 | ||||
Recurring Basis | Level 3 | Asset-Backed Securities Issued | |||||||
Liabilities: | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability value | 319,486 | 511,107 | $ 1,662,852 | ||||
Recurring Basis | Carrying Value | |||||||
Investments in: | |||||||
Excess MSRs | 321,803 | 344,947 | |||||
MSRs and MSR financing receivables | 8,889,403 | 6,858,803 | |||||
Servicer advance investments | 398,820 | 421,807 | |||||
Real estate and other securities | 8,289,277 | 9,396,539 | |||||
Residential mortgage loans, held-for-sale | 101,027 | 132,921 | |||||
Residential mortgage loans, held-for-sale, at fair value | 3,297,271 | 11,214,924 | |||||
Residential mortgage loans, held-for-investment, at fair value | 452,519 | 569,933 | |||||
Residential mortgage loans subject to repurchase | 1,219,890 | 1,787,314 | |||||
Consumer loans | 363,756 | 507,291 | |||||
Derivative assets | 52,229 | 138,173 | |||||
Mortgage loans receivable | 2,064,028 | 1,515,762 | |||||
Note receivable | 0 | 60,549 | |||||
Loans receivable | 94,401 | 229,631 | |||||
Cash and cash equivalents | 1,336,508 | 1,332,575 | |||||
Restricted cash | 281,126 | 195,867 | |||||
Other assets | 23,370 | 39,229 | |||||
Assets, fair value | 27,185,428 | 34,746,265 | |||||
Liabilities: | |||||||
Secured financing agreements | 11,257,737 | 20,592,884 | |||||
Secured notes and bonds payable | 10,098,942 | 8,644,810 | |||||
Unsecured senior notes, net of issuance costs | 545,056 | 543,293 | |||||
Residential mortgage loan repurchase liability | 1,219,890 | 1,787,314 | |||||
Derivative liabilities | 18,064 | 34,583 | |||||
Contingent consideration | 4,951 | ||||||
Liabilities, fair value | 23,139,689 | 31,607,835 | |||||
Recurring Basis | Fair Value | |||||||
Investments in: | |||||||
Excess MSRs | 321,803 | 344,947 | |||||
MSRs and MSR financing receivables | 8,889,403 | 6,858,803 | |||||
Servicer advance investments | 398,820 | 421,807 | |||||
Real estate and other securities | 8,289,277 | 9,396,539 | |||||
Residential mortgage loans, held-for-sale | 101,196 | 134,655 | |||||
Residential mortgage loans, held-for-sale, at fair value | 3,297,271 | 11,214,924 | |||||
Residential mortgage loans, held-for-investment, at fair value | 452,519 | 569,933 | |||||
Residential mortgage loans subject to repurchase | 1,219,890 | 1,787,314 | |||||
Consumer loans | 363,756 | 507,291 | |||||
Derivative assets | 52,229 | 138,173 | |||||
Mortgage loans receivable | 2,064,028 | 1,515,762 | |||||
Note receivable | 0 | 60,549 | |||||
Loans receivable | 94,401 | 49,889 | |||||
Cash and cash equivalents | 1,336,508 | 1,332,575 | |||||
Restricted cash | 281,126 | 195,867 | |||||
Other assets | 23,370 | 39,229 | |||||
Assets, fair value | 27,185,597 | 34,747,999 | |||||
Liabilities: | |||||||
Secured financing agreements | 11,257,737 | 20,596,842 | |||||
Secured notes and bonds payable | 9,911,778 | 8,662,463 | |||||
Unsecured senior notes, net of issuance costs | 493,064 | 541,516 | |||||
Residential mortgage loan repurchase liability | 1,219,890 | 1,787,314 | |||||
Derivative liabilities | 18,064 | 34,583 | |||||
Contingent consideration | 4,951 | ||||||
Liabilities, fair value | 22,900,533 | 31,639,734 | |||||
Recurring Basis | Fair Value | Level 1 | |||||||
Investments in: | |||||||
Excess MSRs | 0 | 0 | |||||
MSRs and MSR financing receivables | 0 | 0 | |||||
Servicer advance investments | 0 | 0 | |||||
Real estate and other securities | 0 | 0 | |||||
Residential mortgage loans, held-for-sale | 0 | 0 | |||||
Residential mortgage loans, held-for-sale, at fair value | 0 | 0 | |||||
Residential mortgage loans, held-for-investment, at fair value | 0 | 0 | |||||
Residential mortgage loans subject to repurchase | 0 | 0 | |||||
Consumer loans | 0 | 0 | |||||
Derivative assets | 0 | 0 | |||||
Mortgage loans receivable | 0 | 0 | |||||
Note receivable | 0 | 0 | |||||
Loans receivable | 0 | 0 | |||||
Cash and cash equivalents | 1,336,508 | 1,332,575 | |||||
Restricted cash | 281,126 | 195,867 | |||||
Other assets | 0 | 3,134 | |||||
Assets, fair value | 1,617,634 | 1,531,576 | |||||
Liabilities: | |||||||
Secured financing agreements | 0 | 0 | |||||
Secured notes and bonds payable | 0 | 0 | |||||
Unsecured senior notes, net of issuance costs | 0 | 0 | |||||
Residential mortgage loan repurchase liability | 0 | 0 | |||||
Derivative liabilities | 0 | 0 | |||||
Contingent consideration | 0 | ||||||
Liabilities, fair value | 0 | 0 | |||||
Recurring Basis | Fair Value | Level 2 | |||||||
Investments in: | |||||||
Excess MSRs | 0 | 0 | |||||
MSRs and MSR financing receivables | 0 | 0 | |||||
Servicer advance investments | 0 | 0 | |||||
Real estate and other securities | 7,338,417 | 8,444,597 | |||||
Residential mortgage loans, held-for-sale | 0 | 0 | |||||
Residential mortgage loans, held-for-sale, at fair value | 3,035,894 | 9,361,520 | |||||
Residential mortgage loans, held-for-investment, at fair value | 0 | 0 | |||||
Residential mortgage loans subject to repurchase | 1,219,890 | 1,787,314 | |||||
Consumer loans | 0 | 0 | |||||
Derivative assets | 36,214 | 23,302 | |||||
Mortgage loans receivable | 349,975 | 0 | |||||
Note receivable | 0 | 0 | |||||
Loans receivable | 0 | 0 | |||||
Cash and cash equivalents | 0 | 0 | |||||
Restricted cash | 0 | 0 | |||||
Other assets | 0 | 0 | |||||
Assets, fair value | 11,980,390 | 19,616,733 | |||||
Liabilities: | |||||||
Secured financing agreements | 11,257,737 | 20,596,842 | |||||
Secured notes and bonds payable | 0 | 0 | |||||
Unsecured senior notes, net of issuance costs | 0 | 0 | |||||
Residential mortgage loan repurchase liability | 1,219,890 | 1,787,314 | |||||
Derivative liabilities | 10,835 | 31,490 | |||||
Contingent consideration | 0 | ||||||
Liabilities, fair value | 12,488,462 | 22,415,646 | |||||
Recurring Basis | Fair Value | Level 3 | |||||||
Investments in: | |||||||
Excess MSRs | 321,803 | 344,947 | |||||
MSRs and MSR financing receivables | 8,889,403 | 6,858,803 | |||||
Servicer advance investments | 398,820 | 421,807 | |||||
Real estate and other securities | 950,860 | 951,942 | |||||
Residential mortgage loans, held-for-sale | 101,196 | 134,655 | |||||
Residential mortgage loans, held-for-sale, at fair value | 261,377 | 1,853,404 | |||||
Residential mortgage loans, held-for-investment, at fair value | 452,519 | 569,933 | |||||
Residential mortgage loans subject to repurchase | 0 | 0 | |||||
Consumer loans | 363,756 | 507,291 | |||||
Derivative assets | 16,015 | 114,871 | |||||
Mortgage loans receivable | 1,714,053 | 1,515,762 | |||||
Note receivable | 0 | 60,549 | |||||
Loans receivable | 94,401 | 229,631 | |||||
Cash and cash equivalents | 0 | 0 | |||||
Restricted cash | 0 | 0 | |||||
Other assets | 23,370 | 36,095 | |||||
Assets, fair value | 13,587,573 | 13,599,690 | |||||
Liabilities: | |||||||
Secured financing agreements | 0 | 0 | |||||
Secured notes and bonds payable | 9,911,778 | 8,662,463 | |||||
Unsecured senior notes, net of issuance costs | 493,064 | 553,581 | |||||
Residential mortgage loan repurchase liability | 0 | 0 | |||||
Derivative liabilities | 7,229 | 3,093 | |||||
Contingent consideration | 4,951 | ||||||
Liabilities, fair value | 10,412,071 | 9,224,088 | |||||
Recurring Basis | Fair Value | Fair Value Measured at Net Asset Value Per Share | |||||||
Investments in: | |||||||
Other assets | $ 23,800 | $ 28,700 | |||||
[1]See Note 6 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 | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Purchases, sales and repayments | ||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Change in fair value of investments | |
Fair Value, Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (loss), net | |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Net unrealized gain (loss) on available-for-sale securities, net | |
Non-Agency | ||
Gains (losses) included in net income | ||
Gain (loss) on settlement of investments, net | $ (1,600) | $ (28,500) |
Excess MSRs in Equity Method Investees | ||
Purchases, sales and repayments | ||
Rithm Capital’s percentage ownership | 50% | 50% |
Recurring Basis | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | $ 13,425,847 | $ 10,063,098 |
Transfers | ||
Transfers from Level 3 | (1,726,112) | |
Transfers to Level 3 | 313,559 | 2,386 |
Acquisitions (Note 3) | 3,129,562 | |
Gains (losses) included in net income | ||
Reversal (provision) for credit losses on securities | (710) | 5,201 |
Change in fair value of Excess MSRs | (2,962) | (15,078) |
Change in fair value of Excess MSRs, equity method investees | 1,526 | 1,818 |
Servicing revenue, net | 823,107 | (513,686) |
Change in fair value of servicer advance investments | (9,950) | (9,076) |
Change in fair value of real estate securities | (16,076) | |
Change in fair value of consumer loans | (36,740) | (20,133) |
Change in fair value of residential mortgage loans | (124,359) | 155,758 |
Gain (loss) on settlement of investments, net | (45,321) | (28,146) |
Other income (loss), net | (202,536) | (285,945) |
Gains (losses) included in other comprehensive income | (45,709) | 28,882 |
Interest income | 121,981 | 64,072 |
Purchases, sales and repayments | ||
Purchases, net | 3,382,544 | 5,635,602 |
Proceeds from sales | (2,432,770) | (3,904,136) |
Proceeds from repayments | (3,108,583) | (2,517,922) |
Originations and other | 3,139,042 | 1,633,590 |
Balance, ending | 13,455,778 | 13,425,847 |
Recurring Basis | Level 3 | Servicer Advance Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 421,807 | 538,056 |
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | 0 |
Acquisitions (Note 3) | 0 | |
Gains (losses) included in net income | ||
Reversal (provision) for credit losses on securities | 0 | 0 |
Change in fair value of Excess MSRs | 0 | 0 |
Change in fair value of Excess MSRs, equity method investees | 0 | 0 |
Servicing revenue, net | 0 | 0 |
Change in fair value of servicer advance investments | (9,950) | (9,076) |
Change in fair value of real estate securities | 0 | |
Change in fair value of consumer loans | 0 | 0 |
Change in fair value of residential mortgage loans | 0 | 0 |
Gain (loss) on settlement of investments, net | 0 | 0 |
Other income (loss), net | 0 | 0 |
Gains (losses) included in other comprehensive income | 0 | 0 |
Interest income | 42,005 | 1,678 |
Purchases, sales and repayments | ||
Purchases, net | 988,847 | 1,286,526 |
Proceeds from sales | 0 | 0 |
Proceeds from repayments | (1,043,889) | (1,395,377) |
Originations and other | 0 | 0 |
Balance, ending | 398,820 | 421,807 |
Recurring Basis | Level 3 | Excess MSRs | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 344,947 | 410,855 |
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | 0 |
Acquisitions (Note 3) | 0 | |
Gains (losses) included in net income | ||
Reversal (provision) for credit losses on securities | 0 | 0 |
Change in fair value of Excess MSRs | (2,962) | (15,078) |
Change in fair value of Excess MSRs, equity method investees | 1,526 | 1,818 |
Servicing revenue, net | 0 | 0 |
Change in fair value of servicer advance investments | 0 | 0 |
Change in fair value of real estate securities | ||
Change in fair value of consumer loans | 0 | 0 |
Change in fair value of residential mortgage loans | 0 | 0 |
Gain (loss) on settlement of investments, net | 107 | 404 |
Other income (loss), net | (65) | (326) |
Gains (losses) included in other comprehensive income | 0 | 0 |
Interest income | 38,035 | 20,296 |
Purchases, sales and repayments | ||
Purchases, net | 0 | 0 |
Proceeds from sales | (997) | (984) |
Proceeds from repayments | (58,788) | (72,038) |
Originations and other | 0 | 0 |
Balance, ending | 321,803 | 344,947 |
Recurring Basis | Level 3 | MSRs And MSR Financing Receivables | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 6,858,803 | 4,585,841 |
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | 0 |
Acquisitions (Note 3) | 1,507,524 | |
Gains (losses) included in net income | ||
Reversal (provision) for credit losses on securities | 0 | 0 |
Change in fair value of Excess MSRs | 0 | 0 |
Change in fair value of Excess MSRs, equity method investees | 0 | 0 |
Servicing revenue, net | 823,107 | (513,686) |
Change in fair value of servicer advance investments | 0 | 0 |
Change in fair value of real estate securities | 0 | |
Change in fair value of consumer loans | 0 | 0 |
Change in fair value of residential mortgage loans | 0 | 0 |
Gain (loss) on settlement of investments, net | 0 | 0 |
Other income (loss), net | 0 | 0 |
Gains (losses) included in other comprehensive income | 0 | 0 |
Interest income | 0 | 0 |
Purchases, sales and repayments | ||
Purchases, net | (967) | 10,949 |
Proceeds from sales | (14,282) | (63,451) |
Proceeds from repayments | 0 | 0 |
Originations and other | 1,222,742 | 1,331,626 |
Balance, ending | 8,889,403 | 6,858,803 |
Recurring Basis | Level 3 | Non-Agency | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 951,942 | 1,180,924 |
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | 0 |
Acquisitions (Note 3) | 0 | |
Gains (losses) included in net income | ||
Reversal (provision) for credit losses on securities | (710) | 5,201 |
Change in fair value of Excess MSRs | 0 | 0 |
Change in fair value of Excess MSRs, equity method investees | 0 | 0 |
Servicing revenue, net | 0 | 0 |
Change in fair value of servicer advance investments | 0 | 0 |
Change in fair value of real estate securities | (16,076) | |
Change in fair value of consumer loans | 0 | 0 |
Change in fair value of residential mortgage loans | 0 | 0 |
Gain (loss) on settlement of investments, net | (1,560) | (28,550) |
Other income (loss), net | 0 | 9,136 |
Gains (losses) included in other comprehensive income | (45,709) | 28,882 |
Interest income | 15,114 | 13,740 |
Purchases, sales and repayments | ||
Purchases, net | 256,500 | 174,340 |
Proceeds from sales | (11,960) | (164,630) |
Proceeds from repayments | (196,681) | (267,101) |
Originations and other | 0 | 0 |
Balance, ending | 950,860 | 951,942 |
Recurring Basis | Level 3 | Derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 111,778 | 289,074 |
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | 0 |
Acquisitions (Note 3) | 116,403 | |
Gains (losses) included in net income | ||
Reversal (provision) for credit losses on securities | 0 | 0 |
Change in fair value of Excess MSRs | 0 | 0 |
Change in fair value of Excess MSRs, equity method investees | 0 | 0 |
Servicing revenue, net | 0 | 0 |
Change in fair value of servicer advance investments | 0 | 0 |
Change in fair value of real estate securities | 0 | |
Change in fair value of consumer loans | 0 | 0 |
Change in fair value of residential mortgage loans | 0 | 0 |
Gain (loss) on settlement of investments, net | 0 | 0 |
Other income (loss), net | (102,992) | (293,699) |
Gains (losses) included in other comprehensive income | 0 | 0 |
Interest income | 0 | 0 |
Purchases, sales and repayments | ||
Purchases, net | 0 | 0 |
Proceeds from sales | 0 | 0 |
Proceeds from repayments | 0 | 0 |
Originations and other | 0 | 0 |
Balance, ending | 8,786 | 111,778 |
Recurring Basis | Level 3 | Residential Mortgage Loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 2,423,337 | 2,320,384 |
Transfers | ||
Transfers from Level 3 | (1,279,709) | |
Transfers to Level 3 | 313,559 | 2,386 |
Acquisitions (Note 3) | 0 | |
Gains (losses) included in net income | ||
Reversal (provision) for credit losses on securities | 0 | 0 |
Change in fair value of Excess MSRs | 0 | 0 |
Change in fair value of Excess MSRs, equity method investees | 0 | 0 |
Servicing revenue, net | 0 | 0 |
Change in fair value of servicer advance investments | 0 | 0 |
Change in fair value of real estate securities | 0 | |
Change in fair value of consumer loans | 0 | 0 |
Change in fair value of residential mortgage loans | (124,359) | 155,758 |
Gain (loss) on settlement of investments, net | 0 | 0 |
Other income (loss), net | (35,020) | (1,357) |
Gains (losses) included in other comprehensive income | 0 | 0 |
Interest income | 0 | 0 |
Purchases, sales and repayments | ||
Purchases, net | 2,099,549 | 4,128,097 |
Proceeds from sales | (2,405,531) | (3,675,071) |
Proceeds from repayments | (272,224) | (487,830) |
Originations and other | (5,706) | (19,030) |
Balance, ending | 713,896 | 2,423,337 |
Recurring Basis | Level 3 | Consumer Loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 507,291 | 685,575 |
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | 0 |
Acquisitions (Note 3) | 0 | |
Gains (losses) included in net income | ||
Reversal (provision) for credit losses on securities | 0 | 0 |
Change in fair value of Excess MSRs | 0 | 0 |
Change in fair value of Excess MSRs, equity method investees | 0 | 0 |
Servicing revenue, net | 0 | 0 |
Change in fair value of servicer advance investments | 0 | 0 |
Change in fair value of real estate securities | 0 | |
Change in fair value of consumer loans | (36,740) | (20,133) |
Change in fair value of residential mortgage loans | 0 | 0 |
Gain (loss) on settlement of investments, net | 0 | 0 |
Other income (loss), net | 0 | 0 |
Gains (losses) included in other comprehensive income | 0 | 0 |
Interest income | 13,891 | 18,925 |
Purchases, sales and repayments | ||
Purchases, net | 29,615 | 29,002 |
Proceeds from sales | 0 | 0 |
Proceeds from repayments | (150,301) | (206,078) |
Originations and other | 0 | 0 |
Balance, ending | 363,756 | 507,291 |
Recurring Basis | Level 3 | Notes and Loans Receivable | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 290,180 | 52,389 |
Transfers | ||
Transfers from Level 3 | (1,000) | |
Transfers to Level 3 | 0 | 0 |
Acquisitions (Note 3) | 0 | |
Gains (losses) included in net income | ||
Reversal (provision) for credit losses on securities | 0 | 0 |
Change in fair value of Excess MSRs | 0 | 0 |
Change in fair value of Excess MSRs, equity method investees | 0 | 0 |
Servicing revenue, net | 0 | 0 |
Change in fair value of servicer advance investments | 0 | 0 |
Change in fair value of real estate securities | 0 | |
Change in fair value of consumer loans | 0 | 0 |
Change in fair value of residential mortgage loans | 0 | 0 |
Gain (loss) on settlement of investments, net | 0 | 0 |
Other income (loss), net | (64,459) | 301 |
Gains (losses) included in other comprehensive income | 0 | 0 |
Interest income | 12,936 | 9,433 |
Purchases, sales and repayments | ||
Purchases, net | 9,000 | 6,688 |
Proceeds from sales | 0 | 0 |
Proceeds from repayments | (152,256) | (28,631) |
Originations and other | 0 | 250,000 |
Balance, ending | 94,401 | 290,180 |
Recurring Basis | Level 3 | Mortgage Loans Receivable | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 1,515,762 | 0 |
Transfers | ||
Transfers from Level 3 | (445,403) | |
Transfers to Level 3 | 0 | 0 |
Acquisitions (Note 3) | 1,505,635 | |
Gains (losses) included in net income | ||
Reversal (provision) for credit losses on securities | 0 | 0 |
Change in fair value of Excess MSRs | 0 | 0 |
Change in fair value of Excess MSRs, equity method investees | 0 | 0 |
Servicing revenue, net | 0 | 0 |
Change in fair value of servicer advance investments | 0 | 0 |
Change in fair value of real estate securities | 0 | |
Change in fair value of consumer loans | 0 | 0 |
Change in fair value of residential mortgage loans | 0 | 0 |
Gain (loss) on settlement of investments, net | (43,868) | 0 |
Other income (loss), net | 0 | 0 |
Gains (losses) included in other comprehensive income | 0 | 0 |
Interest income | 0 | 0 |
Purchases, sales and repayments | ||
Purchases, net | 0 | 0 |
Proceeds from sales | 0 | 0 |
Proceeds from repayments | (1,234,444) | (60,867) |
Originations and other | 1,922,006 | 70,994 |
Balance, ending | $ 1,714,053 | $ 1,515,762 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value Liabilities Measured at Fair Value on a Recurring Basis using Level 3 Inputs (Details) - Asset-Backed Securities Issued - Recurring Basis - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 511,100 | |
Purchases, sales and payments | ||
Ending balance | 632,400 | $ 511,100 |
Level 3 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 511,107 | 1,662,852 |
Gains (losses) included in net income | ||
Included in other income | (34,647) | (12,991) |
Purchases, sales and payments | ||
Payments | (156,974) | (1,138,754) |
Ending balance | $ 319,486 | $ 511,107 |
FAIR VALUE MEASUREMENTS - Weigh
FAIR VALUE MEASUREMENTS - Weighted Average Inputs used in Valuing Excess MSRs Owned Directly and through Equity Method Investees (Details) | 12 Months Ended | |
Dec. 31, 2022 $ / Loan | Dec. 31, 2021 $ / Loan | |
Prepayment Rate | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.013 | 0.053 |
Prepayment Rate | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.978 | 0.504 |
Prepayment Rate | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.092 | 0.102 |
Prepayment Rate | Agency | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.026 | 0.06 |
Prepayment Rate | Agency | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.978 | 0.146 |
Prepayment Rate | Agency | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.080 | 0.102 |
Prepayment Rate | Non-Agency | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.013 | 0.067 |
Prepayment Rate | Non-Agency | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.932 | 0.504 |
Prepayment Rate | Non-Agency | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.150 | 0.067 |
Prepayment Rate | Ginnie Mae | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.028 | 0.053 |
Prepayment Rate | Ginnie Mae | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.812 | 0.143 |
Prepayment Rate | Ginnie Mae | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.103 | 0.126 |
Prepayment Rate | Directly Held | Excess MSRs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.028 | 0.036 |
Prepayment Rate | Directly Held | Excess MSRs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.135 | 0.124 |
Prepayment Rate | Directly Held | Excess MSRs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.073 | 0.068 |
Prepayment Rate | Held through Equity Method Investees | Excess MSRs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.084 | 0.054 |
Prepayment Rate | Held through Equity Method Investees | Excess MSRs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.110 | 0.085 |
Prepayment Rate | Held through Equity Method Investees | Excess MSRs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.094 | 0.067 |
Delinquency | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.001 | 0.001 |
Delinquency | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.800 | 0.646 |
Delinquency | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.053 | 0.031 |
Delinquency | Agency | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.001 | 0.001 |
Delinquency | Agency | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.667 | 0.022 |
Delinquency | Agency | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.020 | 0.009 |
Delinquency | Non-Agency | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.010 | 0.007 |
Delinquency | Non-Agency | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.750 | 0.646 |
Delinquency | Non-Agency | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.211 | 0.118 |
Delinquency | Ginnie Mae | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.002 | 0.014 |
Delinquency | Ginnie Mae | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.800 | 0.063 |
Delinquency | Ginnie Mae | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.089 | 0.041 |
Delinquency | Directly Held | Excess MSRs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.002 | 0.001 |
Delinquency | Directly Held | Excess MSRs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.101 | 0.096 |
Delinquency | Directly Held | Excess MSRs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.036 | 0.032 |
Delinquency | Held through Equity Method Investees | Excess MSRs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.029 | 0.003 |
Delinquency | Held through Equity Method Investees | Excess MSRs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.054 | 0.016 |
Delinquency | Held through Equity Method Investees | Excess MSRs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.039 | 0.009 |
Recapture Rate | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0 | |
Recapture Rate | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.314 | |
Recapture Rate | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.10 | |
Recapture Rate | Agency | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0 | |
Recapture Rate | Agency | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.314 | |
Recapture Rate | Agency | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.107 | |
Recapture Rate | Non-Agency | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.04 | |
Recapture Rate | Non-Agency | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.27 | |
Recapture Rate | Non-Agency | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.068 | |
Recapture Rate | Ginnie Mae | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.048 | |
Recapture Rate | Ginnie Mae | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.245 | |
Recapture Rate | Ginnie Mae | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.127 | |
Recapture Rate | Directly Held | Excess MSRs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0 | 0 |
Recapture Rate | Directly Held | Excess MSRs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.914 | 0.252 |
Recapture Rate | Directly Held | Excess MSRs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.554 | 0.073 |
Recapture Rate | Held through Equity Method Investees | Excess MSRs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.454 | 0.03 |
Recapture Rate | Held through Equity Method Investees | Excess MSRs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.640 | 0.095 |
Recapture Rate | Held through Equity Method Investees | Excess MSRs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.587 | 0.057 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0002 | 0.0025 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0216 | 0.0086 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0034 | 0.0033 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | Agency | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0007 | 0.0025 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | Agency | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0104 | 0.0030 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | Agency | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0030 | 0.0028 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | Non-Agency | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0002 | 0.0026 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | Non-Agency | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0216 | 0.0086 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | Non-Agency | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0046 | 0.0048 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | Ginnie Mae | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0011 | 0.0031 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | Ginnie Mae | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0086 | 0.0045 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | Ginnie Mae | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0041 | 0.0039 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | Directly Held | Excess MSRs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0006 | 0.0006 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | Directly Held | Excess MSRs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0031 | 0.0032 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | Directly Held | Excess MSRs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0019 | 0.0019 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | Held through Equity Method Investees | Excess MSRs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0015 | 0.0015 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | Held through Equity Method Investees | Excess MSRs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0026 | 0.0026 |
Mortgage Servicing Amount or Excess Mortgage Servicing Amount | Held through Equity Method Investees | Excess MSRs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0021 | 0.0022 |
Collateral Weighted Average Maturity (Years) | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 0 years | 0 years |
Collateral Weighted Average Maturity (Years) | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 39 years | 40 years |
Collateral Weighted Average Maturity (Years) | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 24 years | 24 years |
Collateral Weighted Average Maturity (Years) | Agency | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 0 years | 0 years |
Collateral Weighted Average Maturity (Years) | Agency | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 39 years | 40 years |
Collateral Weighted Average Maturity (Years) | Agency | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 23 years | 23 years |
Collateral Weighted Average Maturity (Years) | Non-Agency | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 0 years | 0 years |
Collateral Weighted Average Maturity (Years) | Non-Agency | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 36 years | 30 years |
Collateral Weighted Average Maturity (Years) | Non-Agency | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 24 years | 24 years |
Collateral Weighted Average Maturity (Years) | Ginnie Mae | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 0 years | 0 years |
Collateral Weighted Average Maturity (Years) | Ginnie Mae | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 39 years | 30 years |
Collateral Weighted Average Maturity (Years) | Ginnie Mae | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 27 years | 28 years |
Collateral Weighted Average Maturity (Years) | Directly Held | Excess MSRs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 11 years | 11 years |
Collateral Weighted Average Maturity (Years) | Directly Held | Excess MSRs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 29 years | 28 years |
Collateral Weighted Average Maturity (Years) | Directly Held | Excess MSRs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 21 years | 21 years |
Collateral Weighted Average Maturity (Years) | Held through Equity Method Investees | Excess MSRs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 15 years | 16 years |
Collateral Weighted Average Maturity (Years) | Held through Equity Method Investees | Excess MSRs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 22 years | 23 years |
Collateral Weighted Average Maturity (Years) | Held through Equity Method Investees | Excess MSRs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (Years) | 19 years | 19 years |
Measurement Input, Servicing Cost | Agency | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 6.80 | 6.40 |
Measurement Input, Servicing Cost | Agency | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 7 | 7.20 |
Measurement Input, Servicing Cost | Agency | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 6.90 | 7 |
Measurement Input, Servicing Cost | Non-Agency | MSRs And MSR Financing Receivables | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 10.70 | |
Measurement Input, Servicing Cost | Non-Agency | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 7.30 | 10.60 |
Measurement Input, Servicing Cost | Non-Agency | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 17.20 | 15.80 |
Measurement Input, Servicing Cost | Non-Agency | MSRs And MSR Financing Receivables | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 8.70 | |
Measurement Input, Servicing Cost | Ginnie Mae | MSRs And MSR Financing Receivables | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 8.30 | 8.80 |
Measurement Input, Servicing Cost | Ginnie Mae | MSRs And MSR Financing Receivables | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 8.30 | 8.80 |
Measurement Input, Servicing Cost | Ginnie Mae | MSRs And MSR Financing Receivables | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 8.40 | 8.90 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Residential mortgage loans, held-for-sale, at fair value | ||
Schedule of Equity Method Investments [Line Items] | ||
Assets, fair value adjustment | $ (8.3) | $ 38.2 |
Real Estate Owned | ||
Schedule of Equity Method Investments [Line Items] | ||
Assets, fair value adjustment | (0.7) | (4.3) |
Nonrecurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Assets, fair value | 102.3 | 130.6 |
Nonrecurring | Residential Mortgage Loans, Held-for-Sale | ||
Schedule of Equity Method Investments [Line Items] | ||
Assets, fair value | 91.8 | 115.5 |
Nonrecurring | Real Estate Acquired in Satisfaction of Debt | ||
Schedule of Equity Method Investments [Line Items] | ||
Assets, fair value | $ 10.5 | $ 15.1 |
Maturity Greater than 30 Days | ||
Schedule of Equity Method Investments [Line Items] | ||
Days delinquent (in days) | 30 days | |
Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Recapture rate, term (in months) | 3 months | |
Broker price discount | 10% | |
Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Recapture rate, term (in months) | 6 months | |
Broker price discount | 25% | |
Mortgage Servicing Rights Financing Receivable | LIBOR | ||
Schedule of Equity Method Investments [Line Items] | ||
Variable interest rate spread | 2.10% | |
MSRs | Weighted Average | ||
Schedule of Equity Method Investments [Line Items] | ||
Discount rate | 8.30% | 7.40% |
MSRs | Weighted Average | Excess MSR Joint Ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Discount rate | 8.30% | 7.80% |
MSRs | Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Discount rate | 7.60% | 6.90% |
MSRs | Minimum | Excess MSR Joint Ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Discount rate | 8% | 7.50% |
MSRs | Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Discount rate | 9.80% | 12.50% |
MSRs | Maximum | Excess MSR Joint Ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Discount rate | 8.50% | 8% |
FAIR VALUE MEASUREMENTS - Input
FAIR VALUE MEASUREMENTS - Inputs used in Valuing the Servicer Advances (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value inputs, monthly servicing fee | 0.108% | 0.106% |
Servicer Advances | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 1.20% | 0.70% |
Servicer Advances | Minimum | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.034 | 0.065 |
Servicer Advances | Minimum | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.034 | 0.082 |
Servicer Advances | Minimum | Mortgage Servicing Amount or Excess Mortgage Servicing Amount | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.00180 | 0.00176 |
Servicer Advances | Minimum | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.057 | 0.052 |
Servicer Advances | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2.20% | 1.80% |
Servicer Advances | Maximum | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.046 | 0.077 |
Servicer Advances | Maximum | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.196 | 0.150 |
Servicer Advances | Maximum | Mortgage Servicing Amount or Excess Mortgage Servicing Amount | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.00198 | 0.00198 |
Servicer Advances | Maximum | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.062 | 0.057 |
Servicer Advances | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2.10% | 1.70% |
Servicer Advances | Weighted Average | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.046 | 0.077 |
Servicer Advances | Weighted Average | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.191 | 0.148 |
Servicer Advances | Weighted Average | Mortgage Servicing Amount or Excess Mortgage Servicing Amount | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.00198 | 0.00197 |
Servicer Advances | Weighted Average | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.057 | 0.052 |
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 | 22 years 1 month 6 days |
FAIR VALUE MEASUREMENTS - Secur
FAIR VALUE MEASUREMENTS - Securities Valuation Methodology and Results (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) source | Dec. 31, 2021 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Face Amount | $ 25,370,934 | $ 24,314,300 |
Amortized Cost Basis | 8,237,819 | 9,550,336 |
Real estate and other securities | $ 8,289,277 | 9,396,539 |
Number of broker quotation sources | source | 2 | |
Percentage of instruments with ranges of assumptions used available | 50.40% | |
Multiple Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | $ 8,289,263 | 9,396,539 |
Single Quote | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | 14 | 0 |
Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Face Amount | 7,463,522 | 8,399,343 |
Amortized Cost Basis | 7,290,473 | 8,663,693 |
Agency | Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | 7,338,417 | 8,444,597 |
Agency | Multiple Quotes | Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | 7,338,417 | 8,444,597 |
Agency | Single Quote | Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | 0 | 0 |
Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Face Amount | 17,907,412 | 15,914,957 |
Amortized Cost Basis | 947,346 | 886,643 |
Fair Value | $ 479,406 | |
Non-Agency | Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non-Agency RMBS, measurement input | 0.035 | |
Non-Agency | Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non-Agency RMBS, measurement input | 0.150 | |
Non-Agency | Discount Rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non-Agency RMBS, measurement input | 0.065 | |
Non-Agency | Prepayment Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non-Agency RMBS, measurement input | 0 | |
Non-Agency | Prepayment Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non-Agency RMBS, measurement input | 0.250 | |
Non-Agency | Prepayment Rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non-Agency RMBS, measurement input | 0.111 | |
Non-Agency | CDR | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non-Agency RMBS, measurement input | 0 | |
Non-Agency | CDR | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non-Agency RMBS, measurement input | 0.120 | |
Non-Agency | CDR | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non-Agency RMBS, measurement input | 0.006 | |
Non-Agency | Loss Severity | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non-Agency RMBS, measurement input | 0 | |
Non-Agency | Loss Severity | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non-Agency RMBS, measurement input | 0.880 | |
Non-Agency | Loss Severity | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non-Agency RMBS, measurement input | 0.103 | |
Non-Agency | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | $ 950,860 | 951,942 |
Non-Agency | Multiple Quotes | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | 950,846 | 951,942 |
Non-Agency | Single Quote | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities | $ 14 | $ 0 |
FAIR VALUE MEASUREMENTS - Inp_2
FAIR VALUE MEASUREMENTS - Inputs Used in Valuing Investments (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value and Carrying Value | $ 91,814 | $ 115,483 |
Performing | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value and Carrying Value | 72,595 | 113,196 |
Non-performing | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value and Carrying Value | $ 19,219 | $ 2,287 |
Discount Rate | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.086 | 0.068 |
Discount Rate | Performing | Minimum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.053 | 0.038 |
Discount Rate | Performing | Maximum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.087 | 0.070 |
Discount Rate | Performing | Weighted Average | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.085 | 0.068 |
Discount Rate | Non-performing | Minimum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.087 | 0.075 |
Discount Rate | Non-performing | Maximum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.091 | 0.075 |
Discount Rate | Non-performing | Weighted Average | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.089 | 0.075 |
Prepayment Rate | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.126 | 0.059 |
Prepayment Rate | Performing | Minimum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.093 | 0.048 |
Prepayment Rate | Performing | Maximum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.114 | 0.074 |
Prepayment Rate | Performing | Weighted Average | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.094 | 0.060 |
Prepayment Rate | Non-performing | Minimum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.163 | 0.017 |
Prepayment Rate | Non-performing | Maximum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.311 | 0.017 |
Prepayment Rate | Non-performing | Weighted Average | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.246 | 0.017 |
CDR | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.080 | 0.061 |
CDR | Performing | Minimum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.043 | 0.009 |
CDR | Performing | Maximum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.083 | 0.094 |
CDR | Performing | Weighted Average | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.045 | 0.059 |
CDR | Non-performing | Minimum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.137 | 0.167 |
CDR | Non-performing | Maximum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.275 | 0.167 |
CDR | Non-performing | Weighted Average | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.215 | 0.167 |
Loss Severity | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.272 | 0.454 |
Loss Severity | Performing | Minimum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.200 | 0.409 |
Loss Severity | Performing | Maximum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.371 | 0.547 |
Loss Severity | Performing | Weighted Average | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.239 | 0.455 |
Loss Severity | Non-performing | Minimum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.395 | 0.419 |
Loss Severity | Non-performing | Maximum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.398 | 0.419 |
Loss Severity | Non-performing | Weighted Average | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, measurement input | 0.396 | 0.419 |
Weighted Average Life (Years) | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, term | 4 years 8 months 12 days | 4 years 10 months 24 days |
Weighted Average Life (Years) | Performing | Minimum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, term | 5 years | 4 years 9 months 18 days |
Weighted Average Life (Years) | Performing | Maximum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, term | 7 years 2 months 12 days | 8 years 9 months 18 days |
Weighted Average Life (Years) | Performing | Weighted Average | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, term | 5 years 2 months 12 days | 4 years 10 months 24 days |
Weighted Average Life (Years) | Non-performing | Minimum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, term | 2 years 2 months 12 days | 4 years 8 months 12 days |
Weighted Average Life (Years) | Non-performing | Maximum | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, term | 3 years 9 months 18 days | 4 years 8 months 12 days |
Weighted Average Life (Years) | Non-performing | Weighted Average | Nonrecurring | Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, term | 2 years 10 months 24 days | 4 years 8 months 12 days |
Residential mortgage loans held-for-sale, at fair value | Performing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, fair value | $ 236,452 | |
Residential mortgage loans held-for-sale, at fair value | Non-performing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, fair value | 24,925 | |
Residential mortgage loans held-for-investment, at fair value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans, held-for-investment, fair value | $ 452,519 | |
Residential mortgage loans held-for-investment, at fair value | Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans, held-for-investment, measurement input | 0.038 | |
Residential mortgage loans held-for-investment, at fair value | Discount Rate | Maximum | ||
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 | Discount Rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans, held-for-investment, measurement input | 0.085 | |
Residential mortgage loans held-for-investment, at fair value | Prepayment Rate | Minimum | ||
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 | Prepayment Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans, held-for-investment, measurement input | 0.163 | |
Residential mortgage loans held-for-investment, at fair value | Prepayment Rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans, held-for-investment, measurement input | 0.123 | |
Residential mortgage loans held-for-investment, at fair value | CDR | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans, held-for-investment, measurement input | 0.001 | |
Residential mortgage loans held-for-investment, at fair value | CDR | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans, held-for-investment, measurement input | 0.137 | |
Residential mortgage loans held-for-investment, at fair value | CDR | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans, held-for-investment, measurement input | 0.067 | |
Residential mortgage loans held-for-investment, at fair value | Loss Severity | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans, held-for-investment, measurement input | 0.232 | |
Residential mortgage loans held-for-investment, at fair value | Loss Severity | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans, held-for-investment, measurement input | 0.550 | |
Residential mortgage loans held-for-investment, at fair value | Loss Severity | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans, held-for-investment, measurement input | 0.403 | |
Consumer loans held-for-investment, at fair value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Consumer loans | $ 363,756 | |
Consumer loans held-for-investment, at fair value | Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Consumer loans, held-for-investment, measurement input | 0.083 | |
Consumer loans held-for-investment, at fair value | Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Consumer loans, held-for-investment, measurement input | 0.093 | |
Consumer loans held-for-investment, at fair value | Discount Rate | Weighted Average | ||
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 | Prepayment Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Consumer loans, held-for-investment, measurement input | 0.068 | |
Consumer loans held-for-investment, at fair value | Prepayment Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Consumer loans, held-for-investment, measurement input | 0.332 | |
Consumer loans held-for-investment, at fair value | Prepayment Rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Consumer loans, held-for-investment, measurement input | 0.287 | |
Consumer loans held-for-investment, at fair value | CDR | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Consumer loans, held-for-investment, measurement input | 0 | |
Consumer loans held-for-investment, at fair value | CDR | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Consumer loans, held-for-investment, measurement input | 0.071 | |
Consumer loans held-for-investment, at fair value | CDR | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Consumer loans, held-for-investment, measurement input | 0.043 | |
Consumer loans held-for-investment, at fair value | Loss Severity | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Consumer loans, held-for-investment, measurement input | 0.568 | |
Consumer loans held-for-investment, at fair value | Loss Severity | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Consumer loans, held-for-investment, measurement input | 0.568 | |
Consumer loans held-for-investment, at fair value | Loss Severity | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Consumer loans, held-for-investment, measurement input | 0.568 | |
Interest rate lock commitments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, fair value | $ 8,786 | |
Interest rate lock commitments | Loan Funding Probability | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0 | |
Interest rate lock commitments | Loan Funding Probability | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 1 | |
Interest rate lock commitments | Loan Funding Probability | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.825 | |
Interest rate lock commitments | Fair Value of initial servicing rights | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | (0.01502) | |
Interest rate lock commitments | Fair Value of initial servicing rights | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.03246 | |
Interest rate lock commitments | Fair Value of initial servicing rights | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.01856 | |
Asset-Backed Securities Issued | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, fair value | $ 319,486 | |
Asset-Backed Securities Issued | Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.033 | |
Asset-Backed Securities Issued | Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.063 | |
Asset-Backed Securities Issued | Discount Rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.061 | |
Asset-Backed Securities Issued | Prepayment Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.137 | |
Asset-Backed Securities Issued | Prepayment Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.218 | |
Asset-Backed Securities Issued | Prepayment Rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.213 | |
Asset-Backed Securities Issued | CDR | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.001 | |
Asset-Backed Securities Issued | CDR | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.042 | |
Asset-Backed Securities Issued | CDR | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.039 | |
Asset-Backed Securities Issued | Loss Severity | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.440 | |
Asset-Backed Securities Issued | Loss Severity | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.947 | |
Asset-Backed Securities Issued | Loss Severity | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.916 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Performing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, fair value | $ 52,467 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Non-performing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, fair value | $ 20,759 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Discount Rate | Performing | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.085 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Discount Rate | Performing | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.087 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Discount Rate | Performing | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.085 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Discount Rate | Non-performing | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.087 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Discount Rate | Non-performing | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.559 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Discount Rate | Non-performing | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.090 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Prepayment Rate | Performing | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.093 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Prepayment Rate | Performing | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.114 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Prepayment Rate | Performing | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.097 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | CDR | Performing | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.043 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | CDR | Performing | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.083 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | CDR | Performing | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.050 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Loss Severity | Performing | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.200 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Loss Severity | Performing | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.371 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Loss Severity | Performing | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.241 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Annual change in home prices | Non-performing | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.332 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Annual change in home prices | Non-performing | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.559 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Annual change in home prices | Non-performing | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.407 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Liquidation Timeline (in years) | Non-performing | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 2.2 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Liquidation Timeline (in years) | Non-performing | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 3.8 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Liquidation Timeline (in years) | Non-performing | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 2.8 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Current Value of Underlying Properties | Non-performing | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 1.916 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Current Value of Underlying Properties | Non-performing | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 2.606 | |
Acquired | Residential mortgage loans held-for-sale, at fair value | Current Value of Underlying Properties | Non-performing | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 2.145 | |
Originated | Residential mortgage loans held-for-sale, at fair value | Performing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, fair value | $ 183,985 | |
Originated | Residential mortgage loans held-for-sale, at fair value | Non-performing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, fair value | $ 4,166 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
May 31, 2021 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 25, 2020 | |
Variable Interest Entity [Line Items] | ||||||
Face amount of debt | $ 21,460,632 | |||||
Long-term debt | 22,010,631 | |||||
Recurring Basis | Mortgage Loans Receivable Securitization | ||||||
Variable Interest Entity [Line Items] | ||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | $ 45,800 | $ 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] | ||||||
Owner interest | 53.50% | |||||
Securitization Notes Payable | 2022-RTL1 Securitization | ||||||
Variable Interest Entity [Line Items] | ||||||
Face amount of debt | 479,700 | |||||
Long-term debt | $ 349,900 | |||||
VIE, consolidated | ||||||
Variable Interest Entity [Line Items] | ||||||
Capital distributed to third-party co-investors | $ 71,500 | |||||
Capital distributed to new residential | 597,900 | |||||
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 LLC | ||||||
Variable Interest Entity [Line Items] | ||||||
Capital distributed to third-party co-investors | 71,500 | |||||
Capital distributed to new residential | $ 597,900 | |||||
Corporate Joint Venture | Advance Purchaser LLC | ||||||
Variable Interest Entity [Line Items] | ||||||
Rithm Capital’s percentage ownership | 89.30% | 89.30% | 73.20% |
VARIABLE INTEREST ENTITIES - Va
VARIABLE INTEREST ENTITIES - Variable Interest Entities, Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | |||
Servicer advance investments, at fair value | $ 398,820 | $ 421,807 | |
Residential mortgage loans, held-for-investment, at fair value | [1] | 816,275 | 1,077,224 |
Residential mortgage loans, held-for-sale, at fair value | 3,297,271 | 11,214,924 | |
Cash and cash equivalents | [1] | 1,336,508 | 1,332,575 |
Restricted cash | 281,126 | 195,867 | |
Other assets | [1] | 1,914,607 | 2,795,506 |
Total assets | 32,479,336 | 39,742,190 | |
Liabilities | |||
Secured financing agreements | [1] | 11,257,736 | 20,592,884 |
Accrued expenses and other liabilities | [1] | 1,486,667 | 1,358,768 |
Total liabilities | 25,469,268 | 33,072,810 | |
VIE, consolidated | |||
Assets | |||
Mortgage servicing rights, at fair value | 403,301 | ||
Servicer advance investments, at fair value | 387,675 | 409,475 | |
Residential mortgage loans, held-for-investment, at fair value | 22,699 | 93,226 | |
Residential mortgage loans, held-for-sale, at fair value | 844,000 | 798,644 | |
Consumer loans | 363,756 | 507,291 | |
Mortgage loans receivable | 349,975 | ||
Cash and cash equivalents | 85,961 | 74,028 | |
Restricted cash | 31,000 | 9,630 | |
Servicer advance facilities | 94,306 | ||
Other assets | 172,025 | 367,885 | |
Total assets | 2,257,091 | 2,757,786 | |
Liabilities | |||
Secured financing agreements | 51,325 | 24,683 | |
Secured notes and bonds payable | 1,694,468 | 2,070,792 | |
Accrued expenses and other liabilities | 33,108 | 46,324 | |
Total liabilities | 1,778,901 | 2,141,799 | |
The Buyer | VIE, consolidated | |||
Assets | |||
Mortgage servicing rights, at fair value | 0 | ||
Servicer advance investments, at fair value | 387,675 | 409,475 | |
Residential mortgage loans, held-for-investment, at fair value | 0 | 0 | |
Residential mortgage loans, held-for-sale, at fair value | 0 | 0 | |
Consumer loans | 0 | 0 | |
Mortgage loans receivable | 0 | ||
Cash and cash equivalents | 34,084 | 33,777 | |
Restricted cash | 7,433 | 2,210 | |
Servicer advance facilities | 0 | ||
Other assets | 9 | 9 | |
Total assets | 429,201 | 445,471 | |
Liabilities | |||
Secured financing agreements | 0 | 0 | |
Secured notes and bonds payable | 313,093 | 348,670 | |
Accrued expenses and other liabilities | 1,928 | 806 | |
Total liabilities | 315,021 | 349,476 | |
Shelter Joint Ventures | VIE, consolidated | |||
Assets | |||
Mortgage servicing rights, at fair value | 0 | ||
Servicer advance investments, at fair value | 0 | 0 | |
Residential mortgage loans, held-for-investment, at fair value | 0 | 0 | |
Residential mortgage loans, held-for-sale, at fair value | 0 | 0 | |
Consumer loans | 0 | 0 | |
Mortgage loans receivable | 0 | ||
Cash and cash equivalents | 28,404 | 37,369 | |
Restricted cash | 0 | 0 | |
Servicer advance facilities | 0 | ||
Other assets | 1,026 | 903 | |
Total assets | 29,430 | 38,272 | |
Liabilities | |||
Secured financing agreements | 0 | 0 | |
Secured notes and bonds payable | 0 | 0 | |
Accrued expenses and other liabilities | 4,306 | 6,588 | |
Total liabilities | 4,306 | 6,588 | |
Residential Mortgage Loans | VIE, consolidated | |||
Assets | |||
Mortgage servicing rights, at fair value | 0 | ||
Servicer advance investments, at fair value | 0 | 0 | |
Residential mortgage loans, held-for-investment, at fair value | 22,699 | 93,226 | |
Residential mortgage loans, held-for-sale, at fair value | 844,000 | 798,644 | |
Consumer loans | 0 | 0 | |
Mortgage loans receivable | 0 | ||
Cash and cash equivalents | 23,473 | 2,882 | |
Restricted cash | 7,547 | 171 | |
Servicer advance facilities | 0 | ||
Other assets | 165,975 | 2,902 | |
Total assets | 1,063,694 | 897,825 | |
Liabilities | |||
Secured financing agreements | 51,325 | 24,683 | |
Secured notes and bonds payable | 768,959 | 802,526 | |
Accrued expenses and other liabilities | 25,381 | 10,163 | |
Total liabilities | 845,665 | 837,372 | |
Consumer Loan SPVs | VIE, consolidated | |||
Assets | |||
Mortgage servicing rights, at fair value | 0 | ||
Servicer advance investments, at fair value | 0 | 0 | |
Residential mortgage loans, held-for-investment, at fair value | 0 | 0 | |
Residential mortgage loans, held-for-sale, at fair value | 0 | 0 | |
Consumer loans | 363,756 | 507,291 | |
Mortgage loans receivable | 0 | ||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 6,652 | 7,249 | |
Servicer advance facilities | 0 | ||
Other assets | 5,253 | 6,851 | |
Total assets | 375,661 | 521,391 | |
Liabilities | |||
Secured financing agreements | 0 | 0 | |
Secured notes and bonds payable | 299,498 | 458,580 | |
Accrued expenses and other liabilities | 1,144 | 862 | |
Total liabilities | 300,642 | 459,442 | |
Servicer advance facilities | VIE, consolidated | |||
Assets | |||
Mortgage servicing rights, at fair value | 0 | ||
Servicer advance investments, at fair value | 0 | ||
Residential mortgage loans, held-for-investment, at fair value | 0 | ||
Residential mortgage loans, held-for-sale, at fair value | 0 | ||
Consumer loans | 0 | ||
Cash and cash equivalents | 0 | ||
Restricted cash | 0 | ||
Servicer advance facilities | 94,306 | ||
Other assets | 24,699 | ||
Total assets | 119,005 | ||
Liabilities | |||
Secured financing agreements | 0 | ||
Secured notes and bonds payable | 93,145 | ||
Accrued expenses and other liabilities | 27,771 | ||
Total liabilities | 120,916 | ||
MSR Financing Facilities | VIE, consolidated | |||
Assets | |||
Mortgage servicing rights, at fair value | 403,301 | ||
Servicer advance investments, at fair value | 0 | ||
Residential mortgage loans, held-for-investment, at fair value | 0 | ||
Residential mortgage loans, held-for-sale, at fair value | 0 | ||
Consumer loans | 0 | ||
Cash and cash equivalents | 0 | ||
Restricted cash | 0 | ||
Servicer advance facilities | 0 | ||
Other assets | 332,521 | ||
Total assets | 735,822 | ||
Liabilities | |||
Secured financing agreements | 0 | ||
Secured notes and bonds payable | 367,871 | ||
Accrued expenses and other liabilities | 134 | ||
Total liabilities | $ 368,005 | ||
Mortgage Loans Receivable | VIE, consolidated | |||
Assets | |||
Servicer advance investments, at fair value | 0 | ||
Residential mortgage loans, held-for-investment, at fair value | 0 | ||
Residential mortgage loans, held-for-sale, at fair value | 0 | ||
Consumer loans | 0 | ||
Mortgage loans receivable | 349,975 | ||
Cash and cash equivalents | 0 | ||
Restricted cash | 9,368 | ||
Other assets | (238) | ||
Total assets | 359,105 | ||
Liabilities | |||
Secured financing agreements | 0 | ||
Secured notes and bonds payable | 312,918 | ||
Accrued expenses and other liabilities | 349 | ||
Total liabilities | $ 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 December 31, 2022, and December 31, 2021, total assets of consolidated VIEs were $2.3 billion and $2.8 billion, respectively, and total liabilities of consolidated VIEs were $1.8 billion and $2.1 billion, respectively. See Note 21 for further details. |
VARIABLE INTEREST ENTITIES - _2
VARIABLE INTEREST ENTITIES - Variable Interest Entities, Characteristics (Details) - SAFT 2013-1 Securitization Entity - VIE, consolidated - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | ||
Residential mortgage loan UPB and other collateral | $ 12,035,403 | $ 10,752,079 |
Weighted average delinquency | 4.70% | 4.45% |
Net credit losses | $ 139,908 | $ 130,392 |
Face amount of debt held by third parties | 11,050,277 | 9,897,879 |
Carrying value of bonds retained by Rithm Capital | 933,189 | 927,490 |
Cash flows received by Rithm Capital on these bonds | $ 214,941 | $ 330,197 |
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 | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Noncontrolling Interest [Line Items] | ||||
Total consolidated equity | $ 7,010,068 | $ 6,669,380 | $ 5,429,684 | $ 7,236,260 |
Others’ interest in equity of consolidated subsidiary | 67,067 | 65,348 | ||
Net income | 983,285 | 805,582 | (1,357,684) | |
Others’ interest in net income of consolidated subsidiaries | $ 28,766 | $ 33,356 | $ 52,674 | |
Advance Purchaser LLC | Corporate Joint Venture | ||||
Noncontrolling Interest [Line Items] | ||||
Rithm Capital’s percentage ownership | 89.30% | 89.30% | 73.20% | |
VIE, consolidated | Advance Purchaser LLC | ||||
Noncontrolling Interest [Line Items] | ||||
Others’ ownership interest | 10.70% | 10.70% | ||
VIE, consolidated | Advance Purchaser LLC | Weighted Average | ||||
Noncontrolling Interest [Line Items] | ||||
Others’ ownership interest | 10.70% | 12.90% | 26.80% | |
VIE, consolidated | Shelter Joint Ventures | ||||
Noncontrolling Interest [Line Items] | ||||
Others’ ownership interest | 49.50% | 49.50% | ||
VIE, consolidated | Shelter Joint Ventures | Weighted Average | ||||
Noncontrolling Interest [Line Items] | ||||
Others’ ownership interest | 49.50% | 49.50% | 50.10% | |
VIE, consolidated | Consumer Loan SPVs | ||||
Noncontrolling Interest [Line Items] | ||||
Others’ ownership interest | 46.50% | 46.50% | ||
VIE, consolidated | Consumer Loan SPVs | Weighted Average | ||||
Noncontrolling Interest [Line Items] | ||||
Others’ ownership interest | 46.50% | 46.50% | 46.50% | |
VIE, consolidated | Advance Purchaser LLC | ||||
Noncontrolling Interest [Line Items] | ||||
Total consolidated equity | $ 114,180 | $ 95,995 | ||
Others’ interest in equity of consolidated subsidiary | 12,193 | 10,251 | ||
Net income | 26,685 | (13,937) | $ 3,326 | |
Others’ interest in net income of consolidated subsidiaries | 2,850 | (1,800) | 891 | |
VIE, consolidated | Shelter Joint Ventures | ||||
Noncontrolling Interest [Line Items] | ||||
Total consolidated equity | 25,124 | 31,684 | ||
Others’ interest in equity of consolidated subsidiary | 12,437 | 15,683 | ||
Net income | 5,487 | 22,839 | 31,188 | |
Others’ interest in net income of consolidated subsidiaries | 2,716 | 11,298 | 15,625 | |
VIE, consolidated | Consumer Loan SPVs | ||||
Noncontrolling Interest [Line Items] | ||||
Total consolidated equity | 91,263 | 83,597 | ||
Others’ interest in equity of consolidated subsidiary | 42,437 | 39,414 | ||
Net income | 49,892 | 51,307 | 77,760 | |
Others’ interest in net income of consolidated subsidiaries | $ 23,200 | $ 23,858 | $ 36,158 |
EQUITY AND EARNINGS PER SHARE -
EQUITY AND EARNINGS PER SHARE - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jan. 01, 2023 | Sep. 16, 2022 | Aug. 05, 2022 | Jun. 17, 2022 | Jan. 01, 2022 | Dec. 15, 2021 | Sep. 22, 2021 | Sep. 17, 2021 | Apr. 16, 2021 | Apr. 14, 2021 | Jan. 01, 2021 | May 19, 2020 | Sep. 30, 2021 | Feb. 29, 2020 | Aug. 31, 2019 | Jul. 31, 2019 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||
Common stock, shares authorized (in shares) | 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 | ||||||||||||||||||
Preferred stock, par values (in dollars per share) | $ 0.01 | $ 0.01 | ||||||||||||||||||
Number of shares issued (in shares) | 51,964,000 | 52,210,000 | ||||||||||||||||||
Shares issued, price per share (in dollars per share) | $ 10.89 | $ 10.10 | ||||||||||||||||||
Option exercise (in shares) | 1,600,000 | 6,725,000 | 0 | 0 | ||||||||||||||||
Options granted (in shares) | 0 | 7,051,335 | ||||||||||||||||||
Liquidation preference per share (in dollars per share) | $ 25 | |||||||||||||||||||
Shares repurchased (in shares) | 245,878,000 | |||||||||||||||||||
Shares repurchased | $ 5,200,000 | |||||||||||||||||||
Dividends declared on preferred stock (in dollars per share) | $ 7 | $ 5.97 | $ 5.26 | |||||||||||||||||
Fair value of warrants | $ 53,500,000 | |||||||||||||||||||
Reserved shares of common stock for issuance (in shares) | 15,000,000 | |||||||||||||||||||
Stock option plan term (in years) | 10 years | |||||||||||||||||||
Yearly increase in number of shares available for options | 10% | |||||||||||||||||||
Number of additional shares authorized (in shares) | 5,190,335 | 9,739 | ||||||||||||||||||
Threshold percentage for options that may be issued to the Manager | 10% | |||||||||||||||||||
Stock options outstanding (in shares) | 21,476,990 | |||||||||||||||||||
Share price (in dollars per share) | $ 8.17 | |||||||||||||||||||
Share-based compensation expense | $ 1,300,000 | |||||||||||||||||||
Total unrecognized compensation cost | $ 3,700,000 | |||||||||||||||||||
Issued to the independent directors | ||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||
Stock options outstanding (in shares) | 5,000 | |||||||||||||||||||
Subsequent Event | ||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||
Number of additional shares authorized (in shares) | 98,487 | |||||||||||||||||||
Warrant | ||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||
Exercised (in shares) | 23,000,000 | |||||||||||||||||||
Restricted Stock | ||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||
Granted (in shares) | 578,034 | |||||||||||||||||||
Restricted Stock | Chief Executive Officer | ||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||
Granted (in shares) | 5,000,000 | |||||||||||||||||||
Vesting Period | 3 years | |||||||||||||||||||
Common Stock | ||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||
Authorized repurchase amount | $ 200,000,000 | |||||||||||||||||||
Number of securities called by warrants (in shares) | 6,900,000 | |||||||||||||||||||
Preferred Stock | ||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||
Authorized repurchase amount | $ 100,000,000 | |||||||||||||||||||
Share-based Payment Arrangement, Nonemployee | ||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||
Options granted (in shares) | 1,900,000 | 5,200,000 | ||||||||||||||||||
Share-based Payment Arrangement, Nonemployee | Warrant | ||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||
Options granted (in shares) | 43,400,000 | 43,400,000 | ||||||||||||||||||
Exercise price range, lower range limit (in dollars per share) | $ 6.11 | |||||||||||||||||||
Exercise price range, upper range limit (in dollars per share) | $ 7.94 | |||||||||||||||||||
Expected term (in years) | 3 years | |||||||||||||||||||
Risk free interest rate | 0.24% | |||||||||||||||||||
Expected volatility rate | 35% | |||||||||||||||||||
Exercised (in shares) | 21,000,000 | |||||||||||||||||||
Granted (in shares) | 0 | |||||||||||||||||||
Share-based Payment Arrangement, Nonemployee | Warrant | 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 | |||||||||||||||||||
Share-based Payment Arrangement, Nonemployee | Warrant | 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 | |||||||||||||||||||
7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock | ||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||
Preferred stock, par values (in dollars per share) | $ 0.01 | |||||||||||||||||||
Number of shares issued (in shares) | 18,600,000 | 18,600,000 | ||||||||||||||||||
Interest rate | 7% | 7% | ||||||||||||||||||
Liquidation preference per share (in dollars per share) | $ 25 | |||||||||||||||||||
Net proceeds from liquidation | $ 449,500,000 | |||||||||||||||||||
Dividends declared on preferred stock (in dollars per share) | $ 0.44 | $ 1.75 | $ 0.72 | 0 | ||||||||||||||||
Preferred dividends | $ 8,100,000 | |||||||||||||||||||
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 | 6,210,000 | ||||||||||||||||||
Interest rate | 7.50% | 7.50% | ||||||||||||||||||
Dividends declared on preferred stock (in dollars per share) | $ 0.47 | $ 1.88 | $ 1.88 | 1.88 | ||||||||||||||||
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 | 11,300,000 | ||||||||||||||||||
Interest rate | 7.125% | 7.125% | ||||||||||||||||||
Dividends declared on preferred stock (in dollars per share) | $ 0.45 | $ 1.78 | $ 1.78 | 1.78 | ||||||||||||||||
Preferred dividends | $ 5,000,000 | |||||||||||||||||||
6.375% Series C Preferred Stock | ||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||
Number of shares issued (in shares) | 15,903,000 | 16,100,000 | ||||||||||||||||||
Interest rate | 6.375% | 6.375% | ||||||||||||||||||
Dividends declared on preferred stock (in dollars per share) | $ 0.40 | $ 1.59 | $ 1.59 | $ 1.60 | ||||||||||||||||
Preferred dividends | $ 6,300,000 | |||||||||||||||||||
Underwritten Public Option | ||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||
Number of shares issued (in shares) | 45,000,000 | |||||||||||||||||||
Shares issued, price per share (in dollars per share) | $ 10.10 | |||||||||||||||||||
Underwritten Public Option | 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) | 17,000,000 | |||||||||||||||||||
Over-Allotment Option | ||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||
Number of shares issued (in shares) | 2,550,000 | 6,750,000 | ||||||||||||||||||
Shares issued, price per share (in dollars per share) | $ 24.2125 | $ 10.10 | ||||||||||||||||||
Distribution Agreement | Common Stock | ||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||
Number of shares issued (in shares) | 0 | |||||||||||||||||||
Net proceeds from liquidation | $ 500,000,000 |
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 | 12 Months Ended | |||||||
Dec. 15, 2021 | Sep. 17, 2021 | Sep. 30, 2021 | Feb. 29, 2020 | Aug. 31, 2019 | Jul. 31, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||||||||
Number of shares issued (in shares) | 51,964 | 52,210 | |||||||
Liquidation preference | $ 1,299,104 | $ 1,305,250 | |||||||
Carrying Value | $ 1,257,254 | ||||||||
Preferred stock, dividends (in dollars per share) | $ 7 | $ 5.97 | $ 5.26 | ||||||
Liquidation preference per share (in dollars per share) | $ 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 | 6,210 | |||||||
Liquidation preference | $ 155,002 | $ 155,250 | |||||||
Issuance Discount | 3.15% | ||||||||
Carrying Value | $ 149,822 | ||||||||
Preferred stock, dividends (in dollars per share) | $ 0.47 | $ 1.88 | $ 1.88 | 1.88 | |||||
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 | 11,300 | |||||||
Liquidation preference | $ 281,518 | $ 282,500 | |||||||
Issuance Discount | 3.15% | ||||||||
Carrying Value | $ 272,654 | ||||||||
Preferred stock, dividends (in dollars per share) | 0.45 | $ 1.78 | $ 1.78 | 1.78 | |||||
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 | 16,100 | |||||||
Liquidation preference | $ 397,584 | $ 402,500 | |||||||
Issuance Discount | 3.15% | ||||||||
Carrying Value | $ 385,289 | ||||||||
Preferred stock, dividends (in dollars per share) | 0.40 | $ 1.59 | $ 1.59 | 1.60 | |||||
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 | ||||||||
Preferred stock, dividends (in dollars per share) | $ 0.44 | $ 1.75 | $ 0.72 | $ 0 | |||||
Liquidation preference per share (in dollars per share) | $ 25 |
EQUITY AND EARNINGS PER SHARE_3
EQUITY AND EARNINGS PER SHARE - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||
Dec. 15, 2022 | Sep. 22, 2022 | Jun. 17, 2022 | Mar. 21, 2022 | Dec. 15, 2021 | Aug. 23, 2021 | Jun. 16, 2021 | Mar. 24, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Dividends Payable [Line Items] | ||||||||||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.20 | $ 1 | $ 0.90 | $ 0.50 | ||||||||
Total Amounts Distributed | $ 118.6 | $ 118.4 | $ 116.7 | $ 116.7 | $ 116.7 | $ 116.6 | $ 93.3 | $ 82.9 | ||||||
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 | $ 0.20 | $ 0.20 |
EQUITY AND EARNINGS PER SHARE_4
EQUITY AND EARNINGS PER SHARE - Schedule of Warrants (Details) - $ / shares shares in Millions | 12 Months Ended | |
Sep. 16, 2022 | Dec. 31, 2022 | |
Warrant | ||
Number of Warrants | ||
Exercised (in shares) | (23) | |
Share-based Payment Arrangement, Nonemployee | Warrant | ||
Number of Warrants | ||
Beginning balance (in shares) | 43.4 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (21) | |
Expired (in shares) | 0 | |
Ending balance (in shares) | 22.4 | |
Adjusted Weighted Average Exercise Price (per share) | ||
Beginning balance (in dollars per share) | $ 6.49 | |
Granted (in dollars per share) | 6.23 | |
Exercised (in dollars per share) | 6.30 | |
Expired (in dollars per share) | 0 | |
Ending balance (in dollars per share) | 6.06 | |
Anti-dilutive adjustment (in dollars per share) | $ 0.10 | |
Share-based Payment Arrangement, Nonemployee | Adjusted Warrant | ||
Number of Warrants | ||
Beginning balance (in shares) | 46.2 | |
Granted (in shares) | 2.4 | |
Exercised (in shares) | (23) | |
Expired (in shares) | 0 | |
Ending balance (in shares) | 25.6 |
EQUITY AND EARNINGS PER SHARE_5
EQUITY AND EARNINGS PER SHARE - Options Outstanding by Issuance (Details) - shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options (in shares) | 21,476,990 | 21,478,990 | 14,428,655 |
Held by the Former Manager | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options (in shares) | 21,471,990 | 19,877,843 | |
Issued to the Former Manager and subsequently assigned to certain of the Former Manager’s employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options (in shares) | 0 | 1,594,147 | |
Issued to the independent directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options (in shares) | 5,000 | 7,000 |
EQUITY AND EARNINGS PER SHARE_6
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options - Period End (Details) $ / shares in Units, $ in Thousands | Dec. 31, 2022 USD ($) $ / shares shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of unexercised options (in shares) | 21,476,990 |
Options exercisable (in shares) | 18,812,717 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 13.84 |
Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of unexercised options (in shares) | 5,000 |
Options exercisable (in shares) | 5,000 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 12.55 |
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) | $ / shares | $ 13.43 |
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) | $ / shares | $ 16.15 |
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) | $ / shares | $ 15.54 |
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) | $ / shares | $ 16.88 |
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) | 4,386,062 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 9.92 |
Intrinsic value of exercisable options | $ | $ 0 |
EQUITY AND EARNINGS PER SHARE_7
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options (Details) - $ / shares | 12 Months Ended | |||
Sep. 22, 2021 | Apr. 16, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Options | ||||
Beginning balance (in shares) | 21,478,990 | 14,428,655 | ||
Granted (in shares) | 0 | 7,051,335 | ||
Exercised (in shares) | (1,600,000) | (6,725,000) | 0 | 0 |
Expired (in shares) | (2,000) | (1,000) | ||
Ending balance (in shares) | 21,476,990 | 21,478,990 | ||
Weighted Average Exercise Price | ||||
Granted (in dollars per share) | $ 0 | $ 10.31 | ||
Exercised (in dollars per share) | 0 | 0 | ||
Expired (in dollars per share) | $ 13.20 | $ 12.36 |
EQUITY AND EARNINGS PER SHARE_8
EQUITY AND EARNINGS PER SHARE - RSA Activity (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share units | |
Beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 578,034 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 578,034 |
Weighted Average Grant Date Fair Market Value | |
Beginning balance (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 8.65 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 8.65 |
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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net income (loss) | $ 983,285 | $ 805,582 | $ (1,357,684) |
Noncontrolling interests in income of consolidated subsidiaries | 28,766 | 33,356 | 52,674 |
Dividends on preferred stock | 89,726 | 66,744 | 54,295 |
Net income (loss) attributable to common stockholders - basic | 864,793 | 705,482 | (1,464,653) |
Net income (loss) attributable to common stockholders - diluted | $ 864,793 | $ 705,482 | $ (1,464,653) |
Basic weighted average shares of common stock outstanding (in shares) | 468,836,718 | 451,276,742 | 415,513,187 |
Dilutive effect of stock options, restricted stock, and common stock purchase warrants (in shares) | 12,799,407 | 16,388,264 | 0 |
Diluted weighted average shares of common stock outstanding (in shares) | 481,636,125 | 467,665,006 | 415,513,187 |
Basic earnings (loss) per share attributable to common stockholders (in dollars per share) | $ 1.84 | $ 1.56 | $ (3.52) |
Diluted earnings (loss) per share attributable to common stockholders (in dollars per share) | $ 1.80 | $ 1.51 | $ (3.52) |
Stock options, restricted stock, and common stock purchase warrants (in shares) | 0 | 0 | 7,328,961 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||||
Sep. 15, 2022 | Jun. 17, 2022 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 15, 2022 | Dec. 31, 2021 | ||
Loss Contingencies [Line Items] | |||||||
Estimated liability, representation and warranties | $ 44,300 | ||||||
Residential mortgage loan repurchase liability | [1] | 1,219,890 | $ 1,787,314 | ||||
Held by the Former Manager | |||||||
Loss Contingencies [Line Items] | |||||||
Payment for management fee | $ 100,000 | $ 200,000 | $ 400,000 | ||||
Management fee payable | $ 100,000 | $ 100,000 | |||||
New Penn | |||||||
Loss Contingencies [Line Items] | |||||||
Committed to fund | 2,600,000 | ||||||
Consumer Loan SPVs | Consumer Portfolio Segment | Unfunded Loan Commitment | |||||||
Loss Contingencies [Line Items] | |||||||
Financing receivable | 214,400 | ||||||
Genesis Acquisition | |||||||
Loss Contingencies [Line Items] | |||||||
Committed to fund | $ 823,800 | ||||||
[1]See Note 6 for details. |
TRANSACTIONS WITH AFFILIATES _2
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 15, 2022 USD ($) | Jun. 17, 2022 USD ($) | Sep. 17, 2021 shares | Apr. 14, 2021 shares | May 19, 2020 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) | Jun. 30, 2020 shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares shares | Sep. 16, 2022 shares | Aug. 05, 2022 $ / shares | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | ||||||||||||
Options granted (in shares) | shares | 0 | 7,051,335 | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Face amount of debt | $ 21,460,632 | |||||||||||
Held by the Former Manager | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Costs for Transition Services | 4,900 | |||||||||||
Common Stock | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Cashless exercise of 2020 Warrants (in shares) | shares | 6,900,000 | |||||||||||
Share-based Payment Arrangement, Nonemployee | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Options granted (in shares) | shares | 1,900,000 | 5,200,000 | ||||||||||
Warrant | Share-based Payment Arrangement, Nonemployee | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Options granted (in shares) | shares | 43,400,000 | 43,400,000 | ||||||||||
Percentage of lenders and recipients managed by an affiliate of the manager | 0.480 | |||||||||||
2020 Term Loan | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Debt instrument, term | 3 years | |||||||||||
Principal amount | $ 600,000 | |||||||||||
Held by the Former Manager | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Payment for management fee | $ 100,000 | $ 200,000 | $ 400,000 | |||||||||
Management fee rate (percent) | 1.50% | |||||||||||
Affiliate of Manager | Senior Loans | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Interest rate | 10.50% | |||||||||||
Face amount of debt | 31,300 | |||||||||||
Affiliate of Manager | Senior Subordinated Loans | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Interest rate | 16% | |||||||||||
Face amount of debt | $ 63,300 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 4,253 | $ 5,556 | $ (2,197) |
State and local | 4,096 | 1,470 | 4,084 |
Total current income tax expense | 8,349 | 7,026 | 1,887 |
Deferred: | |||
Federal | 227,825 | 130,696 | 17,516 |
State and local | 43,342 | 20,504 | (2,487) |
Total deferred income tax expense | 271,167 | 151,200 | 15,029 |
Total income tax expense | $ 279,516 | $ 158,226 | $ 16,916 |
INCOME TAXES - Schedule of Repo
INCOME TAXES - Schedule of Reported Provision for Income Taxes and the U.S. Federal Statutory Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Provision at the statutory rate | 21% | 21% | 21% |
Non-taxable REIT income | (3.36%) | (7.38%) | (26.44%) |
State and local taxes | 4.05% | 3.86% | 3.70% |
Return to provision | 0% | (1.10%) | 0.12% |
Other | 0.44% | 0.05% | 0.45% |
Total provision | 22.13% | 16.43% | (1.17%) |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating losses and tax credit carryforwards | $ 23,627 | $ 76,642 |
Basis differences related to assets and investments | 32,447 | 85,104 |
Goodwill | 26,289 | 30,485 |
Accrued expenses | 44,572 | 20,171 |
Other | 1,573 | 4,632 |
Total deferred tax assets | 128,508 | 217,034 |
Less: valuation allowance | 0 | 0 |
Net deferred tax assets | 128,508 | 217,034 |
Deferred tax liabilities: | ||
Mortgage servicing rights | (791,691) | (594,801) |
Basis differences related to assets and investments | (26,832) | (21,672) |
Fixed asset depreciation | (19,302) | (14,495) |
Unrealized mark to market | 0 | (26,021) |
Other | (2,538) | (735) |
Total deferred tax (liability) | (840,363) | (657,724) |
Net deferred tax assets (liability) | (711,855) | $ (440,690) |
Federal and State Tax Authority | ||
Deferred tax liabilities: | ||
Net operating loss carryforwards | 50,000 | |
Net operating loss carryforward that will begin to expire in 2034 | $ 12,800 |
INCOME TAXES - Schedule of Taxa
INCOME TAXES - Schedule of Taxable Common Stock Distributions (Details) - $ / shares | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||||||
Dividends per share (in dollars per share) | $ 0.41 | $ 0.50 | $ 0.62 | |||
Ordinary Income | 41.47% | 58.84% | 78.01% | |||
Long-Term Capital Gain | 0% | 0% | 0% | |||
Return of Capital | 58.53% | 41.16% | 21.99% | |||
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.20 | $ 1 | $ 0.90 | $ 0.50 |
Preferred stock, dividends (in dollars per share) | 7 | 5.97 | 5.26 | |||
Series A Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Dividends per share (in dollars per share) | $ 1.88 | $ 1.88 | $ 1.88 | |||
Ordinary Income | 100% | 100% | 100% | |||
Long-Term Capital Gain | 0% | 0% | 0% | |||
Return of Capital | 0% | 0% | 0% | |||
Preferred stock, dividends (in dollars per share) | 0.47 | 0.47 | 0.47 | |||
Series B Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Dividends per share (in dollars per share) | $ 1.78 | $ 1.78 | $ 1.78 | |||
Ordinary Income | 100% | 100% | 100% | |||
Long-Term Capital Gain | 0% | 0% | 0% | |||
Return of Capital | 0% | 0% | 0% | |||
Preferred stock, dividends (in dollars per share) | 0.45 | 0.45 | 0.45 | |||
Series C Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Dividends per share (in dollars per share) | $ 1.59 | $ 1.59 | $ 1.20 | |||
Ordinary Income | 100% | 100% | 100% | |||
Long-Term Capital Gain | 0% | 0% | 0% | |||
Return of Capital | 0% | 0% | 0% | |||
Preferred stock, dividends (in dollars per share) | 0.40 | 0.40 | $ 0.40 | |||
Series D Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Dividends per share (in dollars per share) | $ 1.75 | $ 0.28 | ||||
Ordinary Income | 100% | 100% | ||||
Long-Term Capital Gain | 0% | 0% | ||||
Return of Capital | 0% | 0% | ||||
Preferred stock, dividends (in dollars per share) | $ 0.44 | $ 0.28 |
RESTRUCTURING CHARGES - Narrati
RESTRUCTURING CHARGES - Narrative (Details) - Held by the Former Manager - USD ($) $ in Millions | 3 Months Ended | |||
Sep. 15, 2022 | Jun. 17, 2022 | Jun. 30, 2022 | Dec. 15, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Payment for management fee | $ 100 | $ 200 | $ 400 | |
Management fee payable | $ 100 | $ 100 |