Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q/A | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-35777 | |
Entity Registrant Name | Rithm Capital Corp. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3449660 | |
Entity Address, Address Line One | 799 Broadway | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10003 | |
City Area Code | (212) | |
Local Phone Number | 850-7770 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 483,477,713 | |
Entity Central Index Key | 0001556593 | |
Amendment Flag | true | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Amendment Description | In filing this Amendment, we are restating our previously issued unaudited consolidated financial statements for the quarter ended March 31, 2024 (the “Affected Period”) to account for the consolidation of certain private label mortgage securitization trusts and other immaterial adjustments as further described in this Amendment. The previously issued financial statements for the Affected Period should no longer be relied upon. In addition, we have filed an amendment to our Annual Report on Form 10-K for the year ended December 31, 2023 with the SEC on August 12, 2024 (such amendment, the “Amended 2023 Form 10-K/A”, and together with this Amendment, the “Amended Reports”). All material restatement information is included in the Amended Reports, and we do not intend to separately amend other filings that we have previously filed with the SEC. | |
Common Stock, $0.01 par value per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | RITM | |
Security Exchange Name | NYSE | |
7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |
Trading Symbol | RITM PR A | |
Security Exchange Name | NYSE | |
7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |
Trading Symbol | RITM PR B | |
Security Exchange Name | NYSE | |
6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |
Trading Symbol | RITM PR C | |
Security Exchange Name | NYSE | |
7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock | |
Trading Symbol | RITM PR D | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | ||
Assets | ||||
Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value | $ 8,706,723 | $ 8,405,938 | ||
Real estate and other securities (includes $14,832,401 and $9,337,159 at fair value, respectively) | 14,857,286 | 9,361,712 | ||
Residential mortgage loans, held-for-investment, at fair value | 365,398 | 379,044 | ||
Residential mortgage loans, held-for-sale (includes $3,691,700 and $2,461,865 at fair value, respectively) | [1] | 3,766,115 | 2,540,742 | |
Consumer loans, held-for-investment, at fair value | [1] | 1,103,799 | 1,274,005 | |
Single-family rental properties | 1,007,172 | 1,001,928 | ||
Mortgage loans receivable, at fair value | 2,042,913 | 1,879,319 | ||
Residential mortgage loans subject to repurchase | 1,845,889 | 1,782,998 | ||
Cash and cash equivalents | 1,136,437 | |||
Restricted cash | 421,557 | 409,896 | ||
Servicer advances receivable | 2,586,409 | 2,760,250 | ||
Reverse repurchase agreements | 3,040,756 | 1,769,601 | ||
Other assets (includes $1,124,961 and $1,167,563 at fair value, respectively) | [1] | 3,111,686 | 3,144,823 | |
Assets of consolidated CFEs | ||||
Investments, at fair value and other assets | [1] | 3,982,059 | 3,751,477 | |
Total assets | 47,935,581 | 39,717,084 | ||
Liabilities | ||||
Secured financing agreements | [1] | 18,271,046 | 12,561,283 | |
Secured notes and bonds payable (includes $221,922 and $235,770 at fair value, respectively) | [1] | 9,721,313 | 10,360,188 | |
Residential mortgage loan repurchase liability | 1,845,889 | 1,782,998 | ||
Unsecured notes, net of issuance costs | 1,205,411 | 719,004 | ||
Treasury securities payable | 2,992,477 | 1,827,281 | ||
Payable for investments purchased | 1,271,542 | 0 | ||
Dividends payable | 135,695 | 135,897 | ||
Accrued expenses and other liabilities (includes $33,586 and $51,765 at fair value, respectively) | [1] | 1,884,527 | 2,065,761 | |
Liabilities of consolidated CFEs | ||||
Notes payable, at fair value and other liabilities | [1] | 3,364,309 | 3,163,634 | |
Total liabilities | 40,692,209 | 32,616,046 | ||
Commitments and Contingencies (Note 23) | ||||
Equity | ||||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 51,964,122 and 51,964,122 issued and outstanding, $1,299,104 and $1,299,104 aggregate liquidation preference, respectively | 1,257,254 | 1,257,254 | ||
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 483,477,713 and 483,226,239 issued and outstanding, respectively | 4,836 | 4,833 | ||
Additional paid-in capital | 6,075,080 | 6,074,322 | ||
Retained earnings (accumulated deficit) | (232,119) | (373,141) | ||
Accumulated other comprehensive income | 44,501 | 43,674 | ||
Total Rithm Capital stockholders’ equity | 7,149,552 | 7,006,942 | ||
Noncontrolling interests in equity of consolidated subsidiaries | 93,820 | 94,096 | ||
Total equity | 7,243,372 | 7,101,038 | ||
Liabilities and Equity | 47,935,581 | 39,717,084 | ||
Consolidated Entity, Excluding Consolidated VIE | ||||
Assets | ||||
Cash and cash equivalents | [1] | 1,136,437 | 1,287,199 | |
Restricted cash | $ 382,939 | [1] | $ 378,048 | |
[1] The Company's Consolidated Balance Sheets include assets and liabilities of consolidated variable interest entities (“VIEs”) and certain other consolidated VIEs classified as collateralized financing entities (“CFEs”) that are presented separately and measured under the CFE election. VIE assets can only be used to settle obligations and liabilities of the VIEs. VIE creditors do not have recourse to Rithm Capital Corp. As of March 31, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.8 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.9 billion and $4.7 billion, respectively. See Note 21 for further details. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Aug. 05, 2022 |
Fair Value | $ 14,832,401 | $ 9,337,159 | |
Residential mortgage loans, HFS, at fair value | 3,691,700 | 2,461,865 | |
Other assets, fair value | 1,124,961 | 1,167,563 | |
Secured notes and bonds payable, at fair value | 221,922 | 235,770 | |
Accrued expenses and other liabilities, fair value | $ 33,586 | $ 51,765 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Preferred stock, shares issued (in shares) | 51,964,122 | 51,964,122 | |
Preferred stock, shares outstanding (in shares) | 51,964,122 | 51,964,122 | |
Preferred stock, liquidation preference | $ 1,299,104 | $ 1,299,104 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |
Common stock, shares issued (in shares) | 483,477,713 | 483,226,239 | |
Common stock, shares outstanding (in shares) | 483,477,713 | 483,226,239 | |
Assets | $ 47,935,581 | $ 39,717,084 | |
Liabilities | 40,692,209 | 32,616,046 | |
Variable Interest Entity, Primary Beneficiary | |||
Residential mortgage loans, HFS, at fair value | 1,177,451 | 1,112,097 | |
Assets | 5,844,022 | 5,566,258 | |
Liabilities | $ 4,917,362 | $ 4,682,388 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | $ 1,184,758 | $ 824,788 |
Total revenues | 1,260,618 | 824,788 |
Expenses | ||
Interest expense and warehouse line fees | 409,827 | 304,215 |
General and administrative | 197,194 | 167,479 |
Compensation and benefits | 235,778 | 188,880 |
Total operating expenses | 842,799 | 660,574 |
Other Income (Loss) | ||
Realized and unrealized gains (losses), net | (44,846) | (65,905) |
Other income (loss), net | 7,926 | (25,166) |
Total other income (loss) | (36,920) | (91,071) |
Income (loss) before income taxes | 380,899 | 73,143 |
Income tax expense (benefit) | 93,412 | (16,806) |
Net income (loss) | 287,487 | 89,949 |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 3,452 | (1,300) |
Dividends on preferred stock | 22,395 | 22,395 |
Net income (loss) attributable to common stockholders - basic | $ 261,640 | $ 68,854 |
Net Income (loss) per share of common stock | ||
Basic (in dollars per share) | $ 0.54 | $ 0.14 |
Diluted (in dollars per share) | $ 0.54 | $ 0.14 |
Weighted average number of shares of common stock outstanding | ||
Basic (in shares) | 483,336,777 | 478,167,178 |
Diluted (in shares) | 485,931,501 | 482,846,911 |
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.25 |
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | $ 469,891 | $ 469,657 |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(116,839) and $(105,691), respectively) | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 84,175 | (142,304) |
Servicing revenue, net | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 554,066 | 327,353 |
Interest income | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 429,886 | 330,023 |
Gain on originated residential mortgage loans, held-for-sale, net | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 142,458 | 109,268 |
Other revenues | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 58,348 | 58,144 |
Asset management revenues | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Total revenues | $ 75,860 | $ 0 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
MSRs | ||
Realization of cash flows | $ (116,839) | $ (105,691) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net income (loss) | $ 287,487 | $ 89,949 |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on available-for-sale securities, net | 1,603 | 2,980 |
Cumulative translation adjustment, net | (870) | 0 |
Deferred taxes | 94 | 0 |
Comprehensive income (loss) | 288,314 | 92,929 |
Comprehensive income (loss) attributable to noncontrolling interests | 3,452 | (1,300) |
Dividends on preferred stock | 22,395 | 22,395 |
Comprehensive income (loss) attributable to common stockholders | $ 262,467 | $ 71,834 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Total Rithm Capital Stockholders’ Equity | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Noncontrolling Interests in Equity of Consolidated Subsidiaries |
Preferred stock, beginning balance (in shares) at Dec. 31, 2022 | 51,964,122,000 | |||||||
Beginning balance at Dec. 31, 2022 | $ 7,010,068 | $ 6,943,001 | $ 1,257,254 | $ 4,739 | $ 6,062,019 | $ (418,662) | $ 37,651 | $ 67,067 |
Common stock, beginning balance (in shares) at Dec. 31, 2022 | 473,715,100,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared on common stock | (120,754) | (120,754) | (120,754) | |||||
Dividends declared on preferred stock | (22,395) | (22,395) | (22,395) | |||||
Capital distributions | (5,430) | (5,430) | ||||||
Cashless exercise of 2020 Warrants (in shares) | 9,287,347,000 | |||||||
Cashless exercise of 2020 Warrants | 0 | $ 93 | (93) | |||||
Director share grants and employee non-cash stock-based compensation (in shares) | 15,300,000 | |||||||
Director share grants and employee non-cash stock-based compensation | 125 | 125 | 125 | |||||
Comprehensive income (loss): | ||||||||
Net income (loss) | 89,949 | 91,249 | 91,249 | (1,300) | ||||
Unrealized gain (loss) on available-for-sale securities, net | 2,980 | 2,980 | 2,980 | |||||
Cumulative translation adjustment, net | 0 | |||||||
Deferred taxes | 0 | |||||||
Comprehensive income (loss) | 92,929 | 94,229 | (1,300) | |||||
Preferred stock, ending balance (in shares) at Mar. 31, 2023 | 51,964,122,000 | |||||||
Ending balance at Mar. 31, 2023 | 6,954,543 | 6,894,206 | $ 1,257,254 | $ 4,832 | 6,062,051 | (470,562) | 40,631 | 60,337 |
Common stock, ending balance (in shares) at Mar. 31, 2023 | 483,017,747,000 | |||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2022 | 51,964,122,000 | |||||||
Beginning balance at Dec. 31, 2022 | $ 7,010,068 | 6,943,001 | $ 1,257,254 | $ 4,739 | 6,062,019 | (418,662) | 37,651 | 67,067 |
Common stock, beginning balance (in shares) at Dec. 31, 2022 | 473,715,100,000 | |||||||
Preferred stock, ending balance (in shares) at Dec. 31, 2023 | 51,964,122 | 51,964,122,000 | ||||||
Ending balance at Dec. 31, 2023 | $ 7,101,038 | 7,006,942 | $ 1,257,254 | $ 4,833 | 6,074,322 | (373,141) | 43,674 | 94,096 |
Common stock, ending balance (in shares) at Dec. 31, 2023 | 483,226,239 | 483,226,239,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared on common stock | $ (120,869) | (120,869) | (120,869) | |||||
Dividends declared on preferred stock | (22,395) | (22,395) | (22,395) | |||||
Capital contributions | 2,138 | 2,138 | ||||||
Capital distributions | (5,866) | (5,866) | ||||||
Director share grants and employee non-cash stock-based compensation (in shares) | 251,474,000 | |||||||
Director share grants and employee non-cash stock-based compensation | 1,012 | 1,012 | $ 3 | 758 | 251 | |||
Comprehensive income (loss): | ||||||||
Net income (loss) | 287,487 | 284,035 | 284,035 | 3,452 | ||||
Unrealized gain (loss) on available-for-sale securities, net | 1,603 | 1,603 | 1,603 | |||||
Cumulative translation adjustment, net | (870) | (870) | (870) | |||||
Deferred taxes | 94 | 94 | 94 | |||||
Comprehensive income (loss) | $ 288,314 | 284,862 | 3,452 | |||||
Preferred stock, ending balance (in shares) at Mar. 31, 2024 | 51,964,122 | 51,964,122,000 | ||||||
Ending balance at Mar. 31, 2024 | $ 7,243,372 | $ 7,149,552 | $ 1,257,254 | $ 4,836 | $ 6,075,080 | $ (232,119) | $ 44,501 | $ 93,820 |
Common stock, ending balance (in shares) at Mar. 31, 2024 | 483,477,713 | 483,477,713,000 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.25 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ 287,487 | $ 89,949 |
Change in fair value of investments, net | ||
Change in fair value of investments, net | 341,219 | 247,075 |
Change in fair value of equity investments | (6,012) | 2,098 |
Change in fair value of secured notes and bonds payable | 4,605 | 2,500 |
(Gain) loss on settlement of investments, net | (274,709) | (167,609) |
(Gain) loss on sale of originated residential mortgage loans, held-for-sale, net | (142,457) | (109,268) |
(Gain) loss on transfer of loans to real estate owned ("REO") | (2,166) | (3,276) |
Accretion and other amortization | (21,224) | (12,766) |
Provision (reversal) for credit losses on securities, loans and REO | 462 | (2,803) |
Non-cash portions of servicing revenue, net | (76,376) | 149,730 |
Deferred tax provision | 90,628 | (16,822) |
Mortgage loans originated and purchased for sale, net of fees | (11,439,065) | (7,531,856) |
Sales proceeds and loan repayment proceeds for residential mortgage loans, held-for-sale | 9,856,746 | 8,137,021 |
Residential mortgage loan repayment proceeds of consolidated CFEs | 80,822 | 57,854 |
Mortgage loans receivable repayment proceeds of consolidated CFEs | 0 | 90,496 |
Interest received from servicer advance investments, loans and other | 13,488 | 13,705 |
Purchase of investments of consolidated CFEs | (9,811) | 0 |
Proceeds from sale and repayments of investments of consolidated CFEs | 2,090 | 0 |
Changes in: | ||
Servicer advances receivable, net | 165,425 | 230,596 |
Other assets | 37,637 | 50,472 |
Accrued expenses and other liabilities | (223,335) | 21,346 |
Net cash provided by (used in) operating activities | (1,314,546) | 1,248,442 |
Cash Flows From Investing Activities | ||
Purchase of US Treasuries | (4,733,368) | 0 |
Purchase of servicer advance investments | (212,656) | (232,446) |
Purchase of RMBS | (1,891) | (2,883,278) |
US Treasury short sales | 1,425,370 | 0 |
Reverse repurchase agreements entered | (1,256,872) | 0 |
Purchase of residential mortgage loans | 0 | (1,269) |
Purchase of Single-family rental (“SFR”) properties, MSRs and other assets | (63,877) | (4,607) |
Draws on revolving consumer loans | (4,113) | (6,831) |
Origination of mortgage loans receivable | (649,698) | 0 |
Net settlement of derivatives | 371,827 | 225,560 |
Return of investments in Excess MSRs | 10,423 | 7,821 |
Principal repayments from servicer advance investments | 224,039 | 240,331 |
Principal repayments from RMBS | 165,324 | 143,419 |
Principal repayments from residential mortgage loans | 12,187 | 8,272 |
Principal repayments from consumer loans | 153,479 | 24,784 |
Proceeds from sale of MSRs and MSR financing receivables | (671) | 1,357 |
Proceeds from sale of RMBS | 0 | 1,869,053 |
Proceeds from sale of REO | 5,216 | 5,678 |
Net cash provided by (used in) investing activities | (4,050,190) | (602,156) |
Cash Flows From Financing Activities | ||
Repayments of secured financing agreements | (18,055,590) | (11,327,261) |
Repayments of warehouse credit facilities | (10,778,294) | (8,473,149) |
Repayment of unsecured senior notes | (275,000) | 0 |
Net settlement of margin deposits under repurchase agreements and derivatives | (346,569) | (387,780) |
Repayments of secured notes and bonds payable | (1,405,197) | (1,677,534) |
Deferred financing fees | (8,298) | (2,103) |
Dividends paid on common and preferred stock | (143,298) | (140,968) |
Borrowings under secured financing agreements | 22,495,882 | 12,240,027 |
Borrowings under warehouse credit facilities | 12,047,306 | 8,062,420 |
Borrowings under secured notes and bonds payable | 761,266 | 1,303,796 |
Proceeds from issuance of unsecured senior notes | 767,103 | 0 |
Noncontrolling interest in equity of consolidated subsidiaries - distributions | (3,728) | (5,430) |
Proceeds from issuance of debt obligations of consolidated CFEs | 257,597 | 0 |
Repayments of debt obligations of consolidated CFEs | (87,545) | (51,983) |
Net cash provided by (used in) financing activities | 5,225,635 | (459,965) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (139,101) | 186,321 |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 1,697,095 | 1,629,328 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 1,557,994 | 1,815,649 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest | 465,964 | 313,870 |
Cash paid during the period for income taxes | 1,259 | 402 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Dividends declared but not paid on common and preferred stock | 143,199 | 143,149 |
Transfer from residential mortgage loans to REO and other assets | 5,917 | 6,025 |
Real estate securities retained from loan securitizations | 0 | 0 |
Residential mortgage loans subject to repurchase | 1,845,889 | 1,189,907 |
Purchase of Agency RMBS, settled after quarter-end | 1,271,542 | 0 |
Cashless exercise of 2020 warrants (par) | 0 | 93 |
Consolidated Entity, Excluding Consolidated VIE | ||
Cash Flows From Investing Activities | ||
Principal repayments from mortgage loans receivable | 423,269 | 0 |
Variable Interest Entity, Primary Beneficiary | ||
Cash Flows From Investing Activities | ||
Principal repayments from mortgage loans receivable | $ 81,822 | $ 0 |
BUSINESS AND ORGANIZATION
BUSINESS AND ORGANIZATION | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS AND ORGANIZATION | BUSINESS AND ORGANIZATION Rithm Capital Corp. (together with its consolidated subsidiaries, “Rithm Capital” or the “Company”), a Delaware corporation formed in September 2011 as a limited liability company (commenced operations in December 2011), is a global asset manager focused on real estate, credit and financial services. Prior to June 17, 2022, Rithm Capital operated under a management agreement (the “Management Agreement”) with FIG LLC (the “Former Manager”), an affiliate of Fortress Investment Group LLC. Effective June 17, 2022, Rithm Capital entered into an internalization agreement with the Former Manager, pursuant to which the Management Agreement was terminated, the Company internalized its management functions (such transactions, the “Internalization”) and, in connection with the Internalization, the Company agreed to pay the Former Manager $400.0 million (subject to certain adjustments), which payments were completed by December 15, 2022. As a result of the Internalization, Rithm Capital operates as an internally managed real estate investment trust (“REIT”). Rithm Capital seeks to generate long-term value for its investors by using its investment expertise to identify, manage and invest in real estate related and other financial assets and more recently, broader asset management capabilities, in each case that provides investors with attractive risk-adjusted returns. The Company’s investments in real estate related assets include its equity interest in operating companies, including leading origination and servicing platforms held through wholly-owned subsidiaries, Newrez LLC (“Newrez”) and Genesis Capital LLC (“Genesis”), as well as investments in single-family rentals (“SFR”), title, appraisal and property preservation and maintenance businesses. The Company’s real estate related strategy involves opportunistically pursuing acquisitions and seeking to establish strategic partnerships that the Company believes enables it to maximize the value of its investments by offering products and services related to the lifecycle of transactions that affect each mortgage loan and underlying residential property or collateral. Rithm Capital operates its asset management business primarily through its wholly-owned subsidiary, Sculptor Capital Management, Inc. (“Sculptor”) and its affiliates. Sculptor, acquired on November 17, 2023, is a leading global alternative asset manager and provides asset management services and investment products across credit, real estate and multi-strategy platforms through commingled funds, separate accounts and other alternative investment vehicles. As of March 31, 2024, Rithm Capital conducted its business through the following segments: (i) Origination and Servicing, (ii) Investment Portfolio, (iii) Mortgage Loans Receivable, (iv) Asset Management and (v) Corporate. Rithm Capital’s servicing and origination businesses operated through its wholly-owned subsidiaries Newrez, New Residential Mortgage LLC (“NRM”) and Caliber Home Loans Inc. (“Caliber”), through December 31, 2023. The operations of Caliber were fully integrated into Newrez in the fourth quarter of 2023. The Company’s residential mortgage origination business sources and originates loans through four distinct channels: Direct to Consumer, Retail, Wholesale and Correspondent. Additionally, the Company’s servicing platform complements its origination business and offers its subsidiaries and third-party clients performing and special servicing capabilities. Rithm Capital also operates additional real estate related businesses through its wholly-owned subsidiaries, including: (i) Avenue 365 Lender Services, LLC, its title company, (ii) eStreet Appraisal Management LLC, its appraisal management company, (iii) Adoor LLC (“Adoor”), focused on the acquisition and management of the SFR properties and (iv) Genesis, a lender for experienced developers and investors of residential real estate, which also supports the Adoor business. The Company also has investments in Guardian Asset Management (“Guardian”), a national provider of field services and property management services. Rithm Capital, through NRM and Newrez, is licensed or otherwise eligible to service residential mortgage loans in all states within the United States of America (“US”) and the District of Columbia. NRM and Newrez are also approved to service mortgage loans on behalf of investors, including Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac,” and together with Fannie Mae, “GSEs”), and in the case of Newrez, Government National Mortgage Association (“Ginnie Mae”). Newrez is also eligible to perform servicing on behalf of other servicers as a subservicer.” Newrez sells substantially all of the mortgage loans that it originates into the secondary market. Newrez securitizes loans into residential mortgage-backed securities (“RMBS”) through the GSEs and Ginnie Mae. Loans originated outside of the GSEs, guidelines of the Federal Housing Administration (“FHA”), United States Department of Agriculture or Department of Veterans Affairs (for loans securitized with Ginnie Mae) are sold to private investors and mortgage conduits. Newrez generally retains the right to service the underlying residential mortgage loans sold and securitized by Newrez. NRM and Newrez are required to conduct aspects of their operations in accordance with applicable policies and guidelines of such agencies. Rithm Capital has elected and intends to qualify to be taxed as a REIT for US federal income tax purposes. As such, Rithm Capital will generally not be subject to US federal corporate income tax on that portion of its net income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. See Note 25 for additional information regarding Rithm Capital’s taxable REIT subsidiaries (“TRSs”). Agreement to Acquire Computershare Mortgage Services Inc. On October 2, 2023, Rithm Capital entered into a definitive agreement with Computershare Limited to acquire Computershare Mortgage Services Inc. (“Computershare”) and certain affiliated companies, including Specialized Loan Servicing LLC (“SLS”), for a purchase price of approximately $720 million (the “Computershare Acquisition”). The Computershare Acquisition, and simultaneous merger of SLS and Newrez, was completed on May 1, 2024. Refer to Note 27 for further information. Transactions with Great Ajax Corp. five |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Interim Financial Statements — The accompanying consolidated financial statements are prepared in accordance with US generally accepted accounting principles (“GAAP” or “US GAAP”). In the opinion of management, all adjustments considered necessary for a fair presentation of Rithm Capital’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The consolidated financial statements include the accounts of Rithm Capital and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. Rithm Capital consolidates those entities in which it has control over significant operating, financing and investing decisions of the entity, as well as those entities classified as 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 applies the equity method of accounting whereby it records its share of the underlying income of such entities unless a fair value option is elected. Distributions from such investments are classified in the Consolidated Statements of Cash Flows based on the cumulative earnings approach, where all distributions up to cumulative earnings are classified as distributions of earnings. Restatement of Previously Issued Financial Statements — On July 22, 2024, the Audit Committee of the Company’s Board of Directors (the “Audit Committee”) concluded that certain prior period financial statements needed to be restated to account for the consolidation of certain private label mortgage securitization trusts and other immaterial adjustments. As a result, on August 12, 2024, the Company filed an Amendment No. 1 on Form 10-K/A (the “Amended 2023 Form 10-K/A”) to its Annual Report on Form 10-K for the year ended December 31, 2023. Certain prior period financial statements and financial information are presented herein as restated. See Note 3 for information on the restated audited consolidated financial statements as of and for the three months ended March 31, 2024. Reclassifications — Certain prior period amounts in Rithm Capital’s consolidated financial statements and respective notes have been reclassified to be consistent with the current period presentation. Such reclassifications had no impact on net income, total assets, total liabilities or stockholders’ equity. Impairment of Long-Lived Assets — The Company reviews long-lived assets for impairment when events or changes in circumstances indicate the carrying value of these assets may exceed their current fair values. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment charges were recognized on long-lived assets for the three months ended March 31, 2024. Subsequently, if events or market conditions affect the estimated fair value of an impaired long-lived asset, the Company will adjust the carrying value of these long-lived assets in the period in which the impairment occurs. Risks and Uncertainties — In the normal course of its business, Rithm Capital primarily encounters two significant types of economic risk: credit risk and market risk. Credit risk is the risk of default on Rithm Capital’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of investments due to changes in prepayment rates, interest rates, spreads or other market factors, including risks that impact the value of the collateral underlying Rithm Capital’s investments. Taking into consideration these risks along with estimated prepayments, financings, collateral values, payment histories and other information, Rithm Capital believes that the carrying values of its investments are reasonable. Furthermore, for each of the periods presented, a significant portion of Rithm Capital’s assets are dependent on its servicers’ and subservicers’ abilities to perform their servicing obligations with respect to the residential mortgage loans underlying Rithm Capital’s Excess mortgage servicing rights (“Excess MSRs”), mortgage servicing rights (“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. Use of Estimates — The preparation of the consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect reported amounts in the consolidated financial statements and accompanying notes. Management believes that estimates utilized in preparation of the consolidated financial statements are reasonable. The most critical estimates include those related to fair value measurements of the Company’s assets and liabilities, goodwill and intangible assets, and the disclosure of contingent assets and liabilities at the reporting date. Actual results could differ from those estimates and such differences could be material. Foreign Currency — The functional currency of substantially all of the Company’s consolidated subsidiaries is the US dollar, as their operations are considered extensions of the US parent’s operations. Monetary assets and liabilities denominated in foreign currencies are remeasured into US dollars at the closing rates of exchange on the balance sheet date. Nonmonetary assets and liabilities denominated in foreign currencies are remeasured into US dollars using the historical exchange rate. As a result, no transaction gains or losses are recognized for nonmonetary assets and liabilities. The profit or loss arising from foreign currency transactions are remeasured using the rate in effect on the date of any relevant transaction. Gains and losses on transactions denominated in foreign currencies due to changes in exchange rates are recorded within general and administrative on the Consolidated Statements of Operations. Unrealized gains and losses due to changes in exchange rates related to investments denominated in a currency other than an entity’s functional currency are reported in net realized and unrealized gains (losses) in the Consolidated Statements of Operations. The Company has a subsidiary acquired as part of the acquisition of Sculptor whose functional currency is the Euro, and the financial statements of such entity are translated into US dollars using the exchange rates prevailing at the end of each reporting period, and the statement of operations of the entity is translated using the rate in effect on the date of any relevant transaction. Gains and losses arising from the translation of monetary assets and liabilities are recorded as a cumulative translation adjustment in the Consolidated Statements of Comprehensive Income and are included in accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. See Note 2 in the Company’s Amended 2023 Form 10-K/A for the complete listing of the significant accounting policies. Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The standard was issued to ease the accounting effects of reform to the London Interbank Offered Rate (“LIBOR”) and other reference rates. The standard provides optional expedients and exceptions for applying GAAP to debt, derivatives and other contracts affected by reference rate reform. The standard was effective as of March 2020. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 deferring the expiration date to December 31, 2024. As of June 30, 2023, the Company has transitioned from LIBOR to an alternative benchmark. The Company's financing arrangements have provisions in place that provide for an alternative to LIBOR. In addition, the Company has amended the terms of certain financing arrangements, where necessary, to transition or direct the transition to an alternative benchmark. The Company does not currently intend to amend the 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series A”), the 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series B”) or the 6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series C”) to change the existing USD-LIBOR cessation fallback language. In 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 interim and annual periods beginning after December 15, 2023. The Company’s adoption of the new standard did not have a material effect on its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . This standard requires public companies to disclose information about their reportable segments’ significant expenses on an interim and annual basis to provide more transparency about the expenses they incur from revenue generating business units. The new standard is effective for annual periods 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. In March 2024, the FASB issued ASU 2024-01, Compensation-Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards , to clarify the scope application of profits interest and similar awards by adding illustrative guidance to help entities determine whether profit interests and similar awards should be accounted for as share-based payment arrangements within the scope of ASC 718, Compensation-Stock Compensation . The ASU’s amendments are effective for fiscal years beginning after December 15, 2024, including interim periods within those years. The Company does not expect the adoption of ASU 2024-01 to have a material effect on its consolidated financial statements. |
RESTATEMENT OF PREVIOUSLY ISSUE
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS On July 22, 2024, the Audit Committee of the Company’s Board of Directors (the “Audit Committee”) concluded that the previously issued unaudited consolidated financial statements and notes thereto as of and for the three months ended March 31, 2024 (the “Affected Financial Statements”) need to be restated and should no longer be relied on. Amounts depicted as “As Restated” throughout the accompanying consolidated financial statements and notes thereto include the impact of the restatement. The Company has restated its unaudited consolidated financial statements as of and for the quarterly period ended March 31, 2024 in the following tables (prior period financial information that is referenced in the following tables was restated in the Amended 2023 10-K/A). The impact of the restatement on the Affected Financial Statements are presented within the tables below and relate to one of the following categories: (a) an error in accounting treatment of certain private label mortgage securitization trusts (“Trusts”), classified as VIEs, that management concluded should be consolidated subject to ASC 810 - Consolidation , and its various interpretations. The conclusion is based on the determination that the Company should be treated as the primary beneficiary of these VIEs, a determination that involves complex and subjective analyses. As a result, the Company determined it necessary to consolidate the Trusts. To correct the error, adjustments were made to eliminate the Company’s retained interest in the Trusts from Real estate and other securities and to reflect the assets of the Trusts as Investments, at fair value and other assets of consolidated entities presented within Assets of consolidated CFEs and the liabilities of the Trusts as Notes payable, at fair value and other liabilities of consolidated entities presented within Liabilities of consolidated CFEs within the Consolidated Balance Sheets. The Company eliminated interest income on previously recognized retained interest, servicing fees related to the assets of the Trusts and any gain/loss on sale of the assets to the Trusts. The change in fair value of the consolidated assets and liabilities and the related interest are recognized in Realized and unrealized gains (losses), net on the Consolidated Statements of Operations. The related adjustments are reflected within the “Error Adjustments” column within the tables below. See Note 2 to the Company’s Consolidated Financial Statements contained in the Company’s Amended 2023 Form 10-K/A for policies of certain consolidated entities and Note 21 for further details on VIEs. These adjustments did not have any impact on the Company’s net income, equity or unrestricted cash position. In addition, there was no effect on retained earnings or other components of stockholders’ equity as of the beginning of the earliest period presented. (b) an immaterial previously unrecorded adjustment related to incorrect netting of treasury securities payable and related financing. This adjustment requires a gross up of reverse repurchase agreement assets and treasury securities payable in the amount of $3.0 billion, a decrease of Other assets by $42.9 million for the difference in carrying value of reverse repurchase agreements and treasury securities payable, and an increase of Accrued expenses and other liabilities in the amount of $5.5 million for accrued interest payable on treasury securities payable as of December 31, 2023 within the Consolidated Balance Sheets. In addition, the Company corrected a second immaterial previously unrecorded adjustment to correct the classification of restricted cash in the amount of $10.9 million which impacted the Consolidated Balance Sheet as of March 31, 2024 and the Consolidated Statement of Cash Flows for the three months ended March 31, 2024. The related adjustments are reflected within the “Error Adjustments” column within the tables below. This adjustment did not have any impact on the Company’s net income, equity or unrestricted cash position. (c) reclassifications of certain prior period amounts related to consolidated loan securitizations - mortgage loans receivable and consolidated funds to conform to the presentation of consolidated CFEs as described in (a) above. Reclassifications have no impact on the Company’s net income, equity or unrestricted cash position and are only included in order to conform the presentation across the periods presented. Accordingly, the tables below present the effect of these adjustments, including the reclassifications, on the affected line items in the Company’s Consolidated Balance Sheets, Consolidated Statements of Operations and Consolidated Statements of Cash Flows as reported in the Company’s Quarterly Report on Form 10-Q as of and for the three months ended March 31, 2024. Consolidated Balance Sheet: March 31, 2024 As Reported Error Adjustments * Subtotal Reclassifications (c)* As Restated Assets Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value $ 8,706,723 $ — $ 8,706,723 $ — $ 8,706,723 Real estate and other securities (includes $14,832,401 at fair value) 15,314,199 (456,913) (a) 14,857,286 — 14,857,286 Residential mortgage loans, held-for-investment, at fair value 365,398 — 365,398 — 365,398 Residential mortgage loans, held-for-sale (includes $3,691,700 at fair value) (A) 3,766,115 — 3,766,115 — 3,766,115 Consumer loans, held-for-investment, at fair value (A) 1,103,799 — 1,103,799 — 1,103,799 Single-family rental properties 1,007,172 — 1,007,172 — 1,007,172 Mortgage loans receivable, at fair value 2,384,744 — 2,384,744 (341,831) 2,042,913 Residential mortgage loans subject to repurchase 1,845,889 — 1,845,889 — 1,845,889 Cash and cash equivalents (A) 1,136,437 — 1,136,437 — 1,136,437 Restricted cash (A) 394,546 10,856 (b) 405,402 (22,463) 382,939 Servicer advances receivable 2,586,409 — 2,586,409 — 2,586,409 Reverse repurchase agreement — 3,040,756 (b) 3,040,756 — 3,040,756 Other assets (includes $1,124,961 at fair value) (A) 3,509,497 (53,737) (b) 3,455,760 (344,074) 3,111,686 Assets of consolidated CFEs (A) : Investments, at fair value and other assets — 3,273,691 (a) 3,273,691 708,368 3,982,059 Total Assets $ 42,120,928 $ 5,814,653 $ 47,935,581 $ — $ 47,935,581 Liabilities and Equity Liabilities Secured financing agreements (A) $ 18,271,046 $ — $ 18,271,046 $ — $ 18,271,046 Secured notes and bonds payable (includes $221,922 at fair value) (A) 10,045,375 — 10,045,375 (324,062) 9,721,313 Residential mortgage loan repurchase liability 1,845,889 — 1,845,889 — 1,845,889 Unsecured notes, net of issuance costs 1,205,411 — 1,205,411 — 1,205,411 Treasury securities payable — 2,992,477 (b) 2,992,477 — 2,992,477 Payable for investments purchased 1,271,542 — 1,271,542 — 1,271,542 Dividends payable 135,695 — 135,695 — 135,695 Accrued expenses and other liabilities (includes $33,586 at fair value) (A) 2,102,598 5,488 (b) 2,108,086 (223,559) 1,884,527 Liabilities of consolidated CFEs (A) : — Notes payable, at fair value and other liabilities — 2,816,688 (a) 2,816,688 547,621 3,364,309 Total Liabilities 34,877,556 5,814,653 40,692,209 — 40,692,209 Equity Preferred stock, $0.01 par value, 100,000,000 shares authorized, 51,964,122 issued and outstanding, $1,299,104 aggregate liquidation preference 1,257,254 — 1,257,254 — 1,257,254 Common stock, $0.01 par value, 2,000,000,000 shares authorized, 483,477,713 issued and outstanding 4,836 — 4,836 — 4,836 Additional paid-in capital 6,075,080 — 6,075,080 — 6,075,080 Retained earnings (accumulated deficit) (232,119) — (232,119) — (232,119) Accumulated other comprehensive income 44,501 — 44,501 — 44,501 Total Rithm Capital stockholders’ equity 7,149,552 — 7,149,552 — 7,149,552 Noncontrolling interests in equity of consolidated subsidiaries 93,820 — 93,820 — 93,820 Total Equity 7,243,372 — 7,243,372 — 7,243,372 Total Liabilities and Equity $ 42,120,928 $ 5,814,653 $ 47,935,581 $ — $ 47,935,581 (A) The Company's Consolidated Balance Sheets include assets and liabilities of consolidated VIEs and certain other consolidated VIEs classified as CFEs that are presented separately and measured under the CFE election. VIE assets can only be used to settle obligations and liabilities of the VIEs. VIE creditors do not have recourse to Rithm Capital Corp. As of March 31, 2024, total assets of such consolidated VIEs were $5.8 billion, and total liabilities of such consolidated VIEs were $4.9 billion. See Note 21 for further details. * See the beginning of this Note 3, for explanations of the adjustments and reclassifications by type referenced in the above table as (a), (b), and (c). Consolidated Statement of Operations: Three Months Ended March 31, 2024 As Reported Error Adjustments * Subtotal Reclassifications (c)* As Restated Revenues Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 470,203 $ (312) (a) $ 469,891 $ — $ 469,891 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(116,839)) 84,175 — 84,175 — 84,175 Servicing revenue, net 554,378 (312) 554,066 — 554,066 Interest income 448,179 (9,348) (a) 438,831 (8,945) 429,886 Gain on originated residential mortgage loans, held-for-sale, net 149,545 (7,087) (a) 142,458 — 142,458 Other revenues 58,348 — 58,348 — 58,348 1,210,450 (16,747) 1,193,703 (8,945) 1,184,758 Asset Management Asset management revenues 75,860 — 75,860 — 75,860 1,286,310 (16,747) 1,269,563 (8,945) 1,260,618 Expenses Interest expense and warehouse line fees 414,365 — 414,365 (4,538) 409,827 General and administrative 195,118 2,076 (a) 197,194 — 197,194 Compensation and benefits 235,778 — 235,778 — 235,778 845,261 2,076 847,337 (4,538) 842,799 Other Income (Loss) Realized and unrealized gains (losses), net (68,134) 18,881 (a) (49,253) 4,407 (44,846) Other income (loss), net 7,984 (58) (a) 7,926 — 7,926 (60,150) 18,823 (41,327) 4,407 (36,920) Income (loss) before income taxes 380,899 — 380,899 — 380,899 Income tax expense (benefit) 93,412 — 93,412 — 93,412 Net Income (loss) $ 287,487 $ — $ 287,487 $ — $ 287,487 Noncontrolling interests in income (loss) of consolidated subsidiaries 3,452 — 3,452 — 3,452 Dividends on preferred stock 22,395 — 22,395 — 22,395 Net income (loss) attributable to common stockholders $ 261,640 $ — $ 261,640 $ — $ 261,640 Net Income (loss) per share of common stock Basic $ 0.54 $ — $ 0.54 $ — $ 0.54 Diluted $ 0.54 $ — $ 0.54 $ — $ 0.54 Weighted average number of shares of common stock outstanding Basic 483,336,777 — 483,336,777 — 483,336,777 Diluted 485,931,501 — 485,931,501 — 485,931,501 Dividends declared per share of common stock $ 0.25 $ — $ 0.25 $ — $ 0.25 * See the beginning of this Note 3, for explanations of the adjustments and reclassifications by type referenced in the above table as (a), (b), and (c). Consolidated Statement of Cash Flows: Three Months Ended March 31, 2024 As Reported Error Adjustments * Subtotal Reclassifications (c)* As Restated Net income (loss) $ 287,487 $ — $ 287,487 $ — $ 287,487 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Change in fair value of investments, net 341,744 (525) (a) 341,219 — 341,219 Change in fair value of equity investments (6,012) — (6,012) — (6,012) Change in fair value of secured notes and bonds payable 4,605 — 4,605 — 4,605 (Gain) loss on settlement of investments, net (274,709) — (274,709) — (274,709) (Gain) loss on sale of originated residential mortgage loans, held-for-sale, net (149,545) 7,088 (a) (142,457) — (142,457) (Gain) loss on transfer of loans to real estate owned ("REO") (2,166) — (2,166) — (2,166) Accretion and other amortization (21,091) (133) (a) (21,224) — (21,224) Provision (reversal) for credit losses on securities, loans and REO 462 — 462 — 462 Non-cash portions of servicing revenue, net (76,376) — (76,376) — (76,376) Deferred tax provision 90,628 — 90,628 — 90,628 Mortgage loans originated and purchased for sale, net of fees (11,439,065) — (11,439,065) — (11,439,065) Sales proceeds and loan repayment proceeds for residential mortgage loans, held-for-sale 10,114,343 (257,597) (a) 9,856,746 — 9,856,746 Residential mortgage loan repayment proceeds of consolidated CFEs — 80,822 (a) 80,822 — 80,822 Interest received from servicer advance investments, loans and other 13,488 — 13,488 — 13,488 Purchase of investments of consolidated CFEs — — — (9,811) (9,811) Proceeds from sale and repayments of investments of consolidated CFEs — — — 2,090 2,090 Changes in: Servicer advances receivable, net 165,425 — 165,425 — 165,425 Other assets 29,916 — 29,916 7,721 37,637 Accrued expenses and other liabilities (223,335) — (223,335) — (223,335) Net cash provided by (used in) operating activities (1,144,201) (170,345) (1,314,546) — (1,314,546) Cash Flows From Investing Activities Purchase of US Treasuries (4,733,368) — (4,733,368) — (4,733,368) Purchase of servicer advance investments (212,656) — (212,656) — (212,656) Purchase of RMBS (16,928) 15,037 (a) (1,891) (1,891) US Treasury short sales 1,425,370 — 1,425,370 — 1,425,370 Reverse repurchase agreements entered (1,256,872) — (1,256,872) — (1,256,872) Purchase of Single-family rental (“SFR”) properties, MSRs and other assets (63,877) — (63,877) — (63,877) Draws on revolving consumer loans (4,113) — (4,113) — (4,113) Origination of mortgage loans receivable (649,698) — (649,698) — (649,698) Net settlement of derivatives 371,827 — 371,827 — 371,827 Return of investments in Excess MSRs 10,423 — 10,423 — 10,423 Principal repayments from servicer advance investments 224,039 — 224,039 — 224,039 Principal repayments from RMBS 177,333 (12,009) (a) 165,324 — 165,324 Principal repayments from residential mortgage loans 12,187 — 12,187 — 12,187 Principal repayments from consumer loans 153,479 — 153,479 — 153,479 Principal repayments from mortgage loans receivable 505,091 — 505,091 (81,822) 423,269 Three Months Ended March 31, 2024 As Reported Error Adjustments * Subtotal Reclassifications (c)* As Restated Mortgage loans receivable repayment proceeds of consolidated entities — — — 81,822 81,822 Proceeds from sale of MSRs and MSR financing receivables (671) — (671) — (671) Proceeds from sale of REO 5,216 — 5,216 — 5,216 Net cash provided by (used in) investing activities (4,053,218) 3,028 (4,050,190) — (4,050,190) Cash Flows From Financing Activities Repayments of secured financing agreements (18,055,590) — (18,055,590) — (18,055,590) Repayments of warehouse credit facilities (10,778,294) — (10,778,294) — (10,778,294) Repayment of unsecured senior notes (275,000) — (275,000) — (275,000) Net settlement of margin deposits under repurchase agreements and derivatives (346,569) — (346,569) — (346,569) Repayments of secured notes and bonds payable (1,405,197) — (1,405,197) — (1,405,197) Deferred financing fees (8,298) — (8,298) — (8,298) Dividends paid on common and preferred stock (143,298) — (143,298) — (143,298) Borrowings under secured financing agreements 22,495,882 — 22,495,882 — 22,495,882 Borrowings under warehouse credit facilities 12,047,306 — 12,047,306 — 12,047,306 Borrowings under notes receivable financing — — — — — Borrowings under secured notes and bonds payable 761,266 — 761,266 — 761,266 Proceeds from issuance of unsecured senior notes 767,103 — 767,103 — 767,103 Noncontrolling interest in equity of consolidated subsidiaries - distributions (3,728) — (3,728) — (3,728) Proceeds from issuance of debt obligations of consolidated CFEs — 257,597 (a) 257,597 — 257,597 Repayments of debt obligations of consolidated CFEs — (87,545) (a) (b) (87,545) — (87,545) Net cash provided by (used in) financing activities 5,055,583 170,052 5,225,635 — 5,225,635 Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash (141,836) 2,735 (139,101) — (139,101) Cash, Cash Equivalents and Restricted Cash, Beginning of Period 1,672,819 24,276 (a) (b) 1,697,095 — 1,697,095 Cash, Cash Equivalents and Restricted Cash, End of Period $ 1,530,983 $ 27,011 $ 1,557,994 $ — $ 1,557,994 Supplemental Disclosure of Cash Flow Information Cash paid during the period for interest 419,701 46,263 (a) 465,964 — 465,964 Cash paid during the period for income taxes 1,259 — 1,259 — 1,259 Supplemental Schedule of Non-Cash Investing and Financing Activities Dividends declared but not paid on common and preferred stock 143,199 — 143,199 — 143,199 Transfer from residential mortgage loans to REO and other assets 5,917 — 5,917 — 5,917 Real estate securities retained from loan securitizations 34,203 (34,203) (a) — — — Residential mortgage loans subject to repurchase 1,845,889 — 1,845,889 — 1,845,889 Purchase of Agency RMBS, settled after quarter-end 1,271,542 — 1,271,542 — 1,271,542 |
SEGMENT REPORTING (AS RESTATED)
SEGMENT REPORTING (AS RESTATED) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING (AS RESTATED) | SEGMENT REPORTING (AS RESTATED) At March 31, 2024, Rithm Capital’s reportable segments included (i) Origination and Servicing, (ii) Investment Portfolio, (iii) Mortgage Loans Receivable, (iv) Asset Management and (v) Corporate. The Corporate segment primarily consists of general and administrative expenses, corporate cash and related interest income, senior unsecured notes (Note 19) and related interest expense. In 2023, 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. Based on this reevaluation, the Company revised its presentation and composition of reportable segments. In conjunction with the acquisition of Sculptor, the Company reevaluated portfolio management to reflect its strategic growth as an asset manager, while maintaining its core business lines. The Asset Management segment was therefore identified and reported in 2023, to primarily reflect operations of Sculptor. The Investment Portfolio consists of previously segregated segments (i) MSR Related Investments, (ii) Real Estate Securities, (iii) Properties and Residential Mortgage Loans, (iv) Consumer loans and (v) certain ancillary investments and equity method investments previously reflected within the Corporate segment. The Company aggregated these segments to reflect is approach to allocating capital and making investment decisions to its portfolio assets. In addition, during the year ended December 31, 2023, the integration of Caliber was completed and, as a result of servicing transfers, the majority of the MSR portfolio is now serviced by Newrez. To reflect the consolidation of assets and operations, Newrez’s origination and servicing operations and the associated owned MSR portfolio are consolidated within the Origination and Servicing reportable segment. Segment information for prior periods has been recast to reflect these changes and to present information for each reportable segment. As a result of the restatement, as discussed in Note 3, the segment financial information was restated. The following tables summarize segment financial information, which in total reconciles to the same data for Rithm Capital on a consolidated basis: Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Corporate Total Three Months Ended March 31, 2024 (As Restated) Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 397,478 $ 72,413 $ — $ — $ — $ 469,891 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(116,839)) 93,361 (9,186) — — — 84,175 Servicing revenue, net 490,839 63,227 — — — 554,066 Interest income 140,021 225,143 64,720 — 2 429,886 Gain on originated residential mortgage loans, HFS, net 145,869 (3,411) — — — 142,458 Other investment portfolio revenues — 58,348 — — — 58,348 Asset management revenues (A) — — — 75,860 — 75,860 Total revenues 776,729 343,307 64,720 75,860 2 1,260,618 Interest expense and warehouse line fees 131,174 228,074 32,414 7,621 10,544 409,827 General and administrative 83,564 66,997 4,754 31,935 9,944 197,194 Compensation and benefits 153,806 4,743 11,303 63,112 2,814 235,778 Total operating expenses 368,544 299,814 48,471 102,668 23,302 842,799 Realized and unrealized gains (losses), net — (62,570) 24,566 (6,842) — (44,846) Other income (loss), net (36) 3,682 274 3,969 37 7,926 Total other income (loss) (36) (58,888) 24,840 (2,873) 37 (36,920) Income (loss) before income taxes 408,149 (15,395) 41,089 (29,681) (23,263) 380,899 Income tax expense (benefit) 96,201 1,248 (333) (3,704) — 93,412 Net income (loss) 311,948 (16,643) 41,422 (25,977) (23,263) 287,487 Noncontrolling interests in income (loss) of consolidated subsidiaries 55 2,037 — 1,360 — 3,452 Dividends on preferred stock — — — — 22,395 22,395 Net income (loss) attributable to common stockholders $ 311,893 $ (18,680) $ 41,422 $ (27,337) $ (45,658) $ 261,640 (A) Includes $4.9 million of asset management related interest income (Note 26). Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Corporate Total March 31, 2024 (As Restated) Investments $ 10,844,061 $ 18,750,436 $ 2,042,913 $ 211,996 $ — $ 31,849,406 Cash and cash equivalents 468,355 505,162 60,713 82,460 19,747 1,136,437 Restricted cash 237,186 93,654 43,851 8,248 — 382,939 Other assets 3,427,033 6,044,513 128,310 829,427 23,600 10,452,883 Goodwill 24,376 5,092 55,731 46,658 — 131,857 Assets of consolidated CFEs — 3,273,690 358,326 350,043 — 3,982,059 Total assets $ 15,001,011 $ 28,672,547 $ 2,689,844 $ 1,528,832 $ 43,347 $ 47,935,581 Debt $ 7,621,241 $ 18,446,477 $ 1,657,136 $ 442,350 $ 1,030,566 $ 29,197,770 Other liabilities 3,294,952 4,415,974 20,064 214,043 185,097 8,130,130 Liabilities of consolidated CFEs — 2,816,688 324,433 223,188 — 3,364,309 Total liabilities 10,916,193 25,679,139 2,001,633 879,581 1,215,663 40,692,209 Total equity 4,084,818 2,993,408 688,211 649,251 (1,172,316) 7,243,372 Noncontrolling interests in equity of consolidated subsidiaries 8,051 43,426 — 42,343 — 93,820 Total Rithm Capital stockholders’ equity $ 4,076,767 $ 2,949,982 $ 688,211 $ 606,908 $ (1,172,316) $ 7,149,552 Investments in equity method investees $ — $ 117,146 $ — $ 102,000 $ — $ 219,146 Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Corporate Total Three Months Ended March 31, 2023 (As Restated) Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 349,424 $ 120,233 $ — $ — $ — $ 469,657 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(105,691)) (37,526) (104,778) — — — (142,304) Servicing revenue, net 311,898 15,455 — — — 327,353 Interest income 109,766 170,586 49,671 — — 330,023 Gain on originated residential mortgage loans, HFS, net 108,221 1,047 — — — 109,268 Other investment portfolio revenues — 58,144 — — — 58,144 Asset management revenues — — — — — — Total revenues 529,885 245,232 49,671 — — 824,788 Interest expense and warehouse line fees 111,069 157,910 25,839 — 9,397 304,215 General and administrative 80,832 74,693 4,129 — 7,825 167,479 Compensation and benefits 160,514 7,136 12,102 — 9,128 188,880 Total operating expenses 352,415 239,739 42,070 — 26,350 660,574 Realized and unrealized gains (losses), net (23) (64,883) (999) — — (65,905) Other income (loss), net (13,427) (5,270) 1,713 — (8,182) (25,166) Total other income (loss) (13,450) (70,153) 714 — (8,182) (91,071) Income (loss) before income taxes 164,020 (64,660) 8,315 (34,532) 73,143 Income tax expense (benefit) (3,672) (11,040) (2,094) — — (16,806) Net income (loss) 167,692 (53,620) 10,409 — (34,532) 89,949 Noncontrolling interests in income (loss) of consolidated subsidiaries (42) (1,258) — — — (1,300) Dividends on preferred stock — — — — 22,395 22,395 Net income (loss) attributable to common stockholders $ 167,734 $ (52,362) $ 10,409 $ — $ (56,927) 68,854 |
EXCESS MORTGAGE SERVICING RIGHT
EXCESS MORTGAGE SERVICING RIGHTS | 3 Months Ended |
Mar. 31, 2024 | |
Transfers and Servicing [Abstract] | |
EXCESS MORTGAGE SERVICING RIGHTS | EXCESS MORTGAGE SERVICING RIGHTS Excess MSR assets include Rithm Capital’s direct investments in Excess MSRs and investments in joint ventures jointly controlled by Rithm Capital and funds managed by the Former Manager investing in Excess MSRs. The Company’s investments in Excess MSR assets measured at fair value are included in Other assets on the Consolidated Balance Sheets. The table below summarizes the components of Excess MSRs: March 31, 2024 December 31, 2023 Direct investments in Excess MSRs $ 199,363 $ 208,385 Excess MSR joint ventures 55,748 62,765 Excess MSRs, at fair value $ 255,111 $ 271,150 Direct Investments in Excess MSRs The following table presents activity related to the carrying value of direct investments in Excess MSRs: Total (A) Balance as of December 31, 2023 $ 208,385 Interest income 2,446 Other income — Proceeds from repayments (9,546) Proceeds from sales — Change in fair value (1,922) Balance as of March 31, 2024 $ 199,363 (A) Underlying loans serviced by Mr. Cooper Group Inc. (“Mr. Cooper”) and SLS. Mr. Cooper or SLS, as applicable, as servicer, performs all of the servicing and advancing functions on the Company’s Excess MSR assets, retains the ancillary income and assumes servicing obligations and liabilities as the servicer of the underlying loans in the portfolio. Rithm Capital entered into a “recapture agreement” with respect to each of the direct Excess MSR investments serviced by Mr. Cooper and SLS. Under such arrangements, Rithm Capital is generally entitled to a pro rata interest in the Excess MSRs on any refinancing of a loan in the original portfolio. On October 2, 2023, Rithm Capital entered into a definitive agreement with Computershare Limited with respect to the Computershare Acquisition, which closed on May 1, 2024 (Note 27) for a purchase price of approximately $720 million. As part of the transaction, Rithm Capital acquired MSRs owned by SLS underlying the Excess MSR, which will be reclassified to full MSRs. The Excess MSRs to be reclassified have a fair value of $1.0 million at March 31, 2024. The following summarizes direct investments in Excess MSRs: March 31, 2024 December 31, 2023 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis Carrying Value (B) Carrying Value (B) Rithm Capital (C, D) Former Manager-managed funds Mr. Cooper $ 41,899,426 32.5% – 100.0% (56.4%) 0.0% – 50.0% 0.0% – 35.0% 6.0 $ 174,621 $ 199,363 $ 208,385 (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 also invested in related servicer advance investments, including the basic fee component of the related MSR as of March 31, 2024 (Note 7) on $14.9 billion unpaid principal balance (“UPB”) underlying these Excess MSRs. Changes in fair value of Excess MSR investments consist of the following: Three Months Ended 2024 2023 Original and Recaptured Pools $ (1,922) $ (9,818) As of March 31, 2024, a weighted average discount rate of 8.8% was used to value Rithm Capital’s direct and jointly controlled investments in Excess MSRs. Excess MSR Joint Ventures Rithm Capital entered into investments in joint ventures (“Excess MSR joint ventures”) jointly controlled by Rithm Capital and funds managed by the Former Manager investing in Excess MSRs. The following tables summarize the financial results of the Excess MSR joint ventures, accounted for under the equity method of accounting: March 31, 2024 December 31, 2023 Excess MSRs $ 111,664 $ 114,552 Other assets 519 11,664 Other liabilities (687) (687) Equity $ 111,496 $ 125,529 Rithm Capital’s investment $ 55,748 $ 62,765 Rithm Capital’s percentage ownership 50.0 % 50.0 % Three Months Ended 2024 2023 Interest income $ 3,454 $ 2,404 Other income (loss) (3,330) (5,225) Expenses (14) (8) Net income (loss) $ 110 $ (2,829) The following table summarizes the activity of investments in equity method investees: Balance at December 31, 2023 $ 62,765 Distributions of earnings from equity method investees (107) Distributions of capital from equity method investees (6,965) Change in fair value of investments in equity method investees 55 Balance at March 31, 2024 $ 55,748 The following is a summary of Excess MSR investments made through equity method investees: As of March 31, 2024 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 $ 16,678,050 66.7 % 50.0 % $ 92,197 $ 111,664 5.2 (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 expected cash flows of each investment. The following table summarizes activity related to MSRs and MSR financing receivables: Balance at December 31, 2023 $ 8,405,938 Purchases, net — Originations (A) 215,939 Sales 671 Change in fair value due to: Realization of cash flows (B) (116,839) Change in valuation inputs and assumptions 201,014 Balance at March 31, 2024 $ 8,706,723 (A) Represents MSRs retained on the sale of originated residential mortgage loans. (B) Based on the paydown of the underlying residential mortgage loans. The following table summarizes components of servicing revenue, net: Three Months Ended 2024 (As Restated) 2023 (As Restated) Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 430,114 $ 439,050 Ancillary and other fees 39,777 30,607 Servicing fee revenue, net and fees 469,891 469,657 Change in fair value due to: Realization of cash flows (116,839) (105,691) Change in valuation inputs and assumptions, net of realized gains (losses) 201,014 (36,613) Servicing revenue, net $ 554,066 $ 327,353 The following table summarizes MSRs and MSR financing receivables by type as of March 31, 2024: UPB of Underlying Mortgages Weighted Average Life (Years) (A) Carrying Value (B) Agency $ 348,953,092 7.8 $ 5,477,522 Non-Agency 47,806,353 6.8 666,958 Ginnie Mae (C) 129,914,381 7.2 2,562,243 Total/Weighted Average $ 526,673,826 7.5 $ 8,706,723 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Represents fair value. As of March 31, 2024, weighted average discount rates of 8.5% (range of 7.9% – 10.8%) were used to value Rithm Capital’s MSRs and MSR financing receivables. (C) As of March 31, 2024, Rithm Capital holds approximately $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 Newrez, is an approved issuer of Ginnie Mae mortgage-backed securities (“MBS”) and 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. As a result, once the delinquency criteria have been met and regardless of whether the repurchase option has been exercised, the Company accounts for the loans as if they had been repurchased. The Company recognizes such loans and a corresponding liability in the Consolidated Balance Sheets. As of March 31, 2024, Rithm Capital reflected approximately $1.8 billion in residential mortgage loans subject to repurchase and residential mortgage loans repurchase liability on its Consolidated Balance Sheets. Rithm Capital may re-pool repurchased loans into new Ginnie Mae securitizations upon re-performance of the loan or otherwise sell to third-party investors. The Company does not change the accounting for MSRs related to previously sold loans upon recognizing loans eligible for repurchase. Rather, upon repurchase of a loan, the MSR is written off. As of March 31, 2024, Rithm Capital holds approximately $0.5 billion of such repurchased loans presented within Residential mortgage loans, held for sale on its Consolidated Balance Sheets. Ocwen MSR Financing Receivable Transactions In July 2017, Ocwen Loan Servicing, LLC (collectively with certain affiliates, “Ocwen”, and subsequently PHH Mortgage Corporation (“PHH”) (as successor by merger to Ocwen)) and Rithm Capital entered into an agreement to transfer from Ocwen to Rithm Capital of Ocwen’s remaining interests in the MSRs relating to loans with an aggregate UPB of approximately $110.0 billion and with respect to which Rithm Capital already held certain rights (“Rights to MSRs”). Additionally, in January 2018, Ocwen sold and transferred to Rithm Capital certain Rights to MSRs and other assets related to MSRs for loans with a UPB of approximately $86.8 billion, of which approximately $11.1 billion UPB, as March 31, 2024, of underlying loans consents have not been received and all other conditions to transfer have not been met and, accordingly, are recorded as MSR financing receivables. Geographic Distributions 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 March 31, 2024 December 31, 2023 California 17.0 % 17.1 % Florida 8.6 % 8.6 % Texas 6.2 % 6.2 % New York 6.0 % 6.0 % Washington 5.7 % 5.8 % New Jersey 4.3 % 4.3 % Virginia 3.7 % 3.6 % Maryland 3.4 % 3.4 % Illinois 3.3 % 3.3 % Georgia 3.0 % 3.0 % Other US 38.8 % 38.7 % 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 Newrez performs servicing of residential mortgage loans for unaffiliated parties under servicing agreements. The servicing agreements do not meet the criteria to be recognized as a servicing right asset and, therefore, are not recognized in the Consolidated Balance Sheets. The UPB of residential mortgage loans serviced for others as of March 31, 2024 and 2023 was $111.3 billion and $94.1 billion, respectively. Rithm Capital earned servicing revenue of $38.1 million and $34.0 million for the three months ended March 31, 2024 and 2023, respectively, related to unaffiliated subserviced loans which is presented within Servicing revenue, net in the Consolidated Statements of Operations. In relation to certain owned MSRs, Rithm Capital engages unaffiliated licensed mortgage servicers as subservicers to perform the operational servicing duties, including recapture activities, in exchange for a subservicing fee, which is recognized as subservicing expense and presented as part of General and administrative expenses in the Consolidated Statements of Operations. As of March 31, 2024, PHH and Valon Mortgage, Inc. (“Valon”) subservice 8.5% and 4.8%, respectively, of MSRs owned by Rithm Capital. The remaining 86.7% of owned MSRs are serviced by Newrez (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 table below summarizes the type of advances included in the servicer advances receivable: March 31, 2024 December 31, 2023 Principal and interest advances $ 592,660 $ 616,801 Escrow advances (taxes and insurance advances) 1,283,083 1,442,697 Foreclosure advances 775,190 767,171 Total (A)(B)(C) $ 2,650,933 $ 2,826,669 (A) Includes $529.6 million and $585.0 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B) Includes $372.2 million and $405.6 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 value through a non-reimbursable advance loss assumption. (C) Excludes $64.5 million and $66.4 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., ranks “top of the waterfall”) and Rithm Capital is generally entitled to repayment from the respective loan or REO liquidation proceeds before any interest or principal is paid on the notes issued by the trust. In most cases, advances in excess of respective the 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 provisioned $93.2 million, or 3.5%, and $93.7 million, or 3.3%, for expected non-recovery of advances as of March 31, 2024 and December 31, 2023, respectively. The following table summarizes servicer advances provision activity during the quarter: Balance at December 31, 2023 $ 93,681 Provision 7,217 Write-offs (7,654) Balance at March 31, 2024 $ 93,244 See Note 19 regarding the financing of MSRs and servicer advances receivable. For a discussion of the restatement, refer to Note 3. |
MORTGAGE SERVICING RIGHTS AND M
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (AS RESTATED) | 3 Months Ended |
Mar. 31, 2024 | |
Transfers and Servicing of Financial Assets [Abstract] | |
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (AS RESTATED) | EXCESS MORTGAGE SERVICING RIGHTS Excess MSR assets include Rithm Capital’s direct investments in Excess MSRs and investments in joint ventures jointly controlled by Rithm Capital and funds managed by the Former Manager investing in Excess MSRs. The Company’s investments in Excess MSR assets measured at fair value are included in Other assets on the Consolidated Balance Sheets. The table below summarizes the components of Excess MSRs: March 31, 2024 December 31, 2023 Direct investments in Excess MSRs $ 199,363 $ 208,385 Excess MSR joint ventures 55,748 62,765 Excess MSRs, at fair value $ 255,111 $ 271,150 Direct Investments in Excess MSRs The following table presents activity related to the carrying value of direct investments in Excess MSRs: Total (A) Balance as of December 31, 2023 $ 208,385 Interest income 2,446 Other income — Proceeds from repayments (9,546) Proceeds from sales — Change in fair value (1,922) Balance as of March 31, 2024 $ 199,363 (A) Underlying loans serviced by Mr. Cooper Group Inc. (“Mr. Cooper”) and SLS. Mr. Cooper or SLS, as applicable, as servicer, performs all of the servicing and advancing functions on the Company’s Excess MSR assets, retains the ancillary income and assumes servicing obligations and liabilities as the servicer of the underlying loans in the portfolio. Rithm Capital entered into a “recapture agreement” with respect to each of the direct Excess MSR investments serviced by Mr. Cooper and SLS. Under such arrangements, Rithm Capital is generally entitled to a pro rata interest in the Excess MSRs on any refinancing of a loan in the original portfolio. On October 2, 2023, Rithm Capital entered into a definitive agreement with Computershare Limited with respect to the Computershare Acquisition, which closed on May 1, 2024 (Note 27) for a purchase price of approximately $720 million. As part of the transaction, Rithm Capital acquired MSRs owned by SLS underlying the Excess MSR, which will be reclassified to full MSRs. The Excess MSRs to be reclassified have a fair value of $1.0 million at March 31, 2024. The following summarizes direct investments in Excess MSRs: March 31, 2024 December 31, 2023 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis Carrying Value (B) Carrying Value (B) Rithm Capital (C, D) Former Manager-managed funds Mr. Cooper $ 41,899,426 32.5% – 100.0% (56.4%) 0.0% – 50.0% 0.0% – 35.0% 6.0 $ 174,621 $ 199,363 $ 208,385 (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 also invested in related servicer advance investments, including the basic fee component of the related MSR as of March 31, 2024 (Note 7) on $14.9 billion unpaid principal balance (“UPB”) underlying these Excess MSRs. Changes in fair value of Excess MSR investments consist of the following: Three Months Ended 2024 2023 Original and Recaptured Pools $ (1,922) $ (9,818) As of March 31, 2024, a weighted average discount rate of 8.8% was used to value Rithm Capital’s direct and jointly controlled investments in Excess MSRs. Excess MSR Joint Ventures Rithm Capital entered into investments in joint ventures (“Excess MSR joint ventures”) jointly controlled by Rithm Capital and funds managed by the Former Manager investing in Excess MSRs. The following tables summarize the financial results of the Excess MSR joint ventures, accounted for under the equity method of accounting: March 31, 2024 December 31, 2023 Excess MSRs $ 111,664 $ 114,552 Other assets 519 11,664 Other liabilities (687) (687) Equity $ 111,496 $ 125,529 Rithm Capital’s investment $ 55,748 $ 62,765 Rithm Capital’s percentage ownership 50.0 % 50.0 % Three Months Ended 2024 2023 Interest income $ 3,454 $ 2,404 Other income (loss) (3,330) (5,225) Expenses (14) (8) Net income (loss) $ 110 $ (2,829) The following table summarizes the activity of investments in equity method investees: Balance at December 31, 2023 $ 62,765 Distributions of earnings from equity method investees (107) Distributions of capital from equity method investees (6,965) Change in fair value of investments in equity method investees 55 Balance at March 31, 2024 $ 55,748 The following is a summary of Excess MSR investments made through equity method investees: As of March 31, 2024 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 $ 16,678,050 66.7 % 50.0 % $ 92,197 $ 111,664 5.2 (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 expected cash flows of each investment. The following table summarizes activity related to MSRs and MSR financing receivables: Balance at December 31, 2023 $ 8,405,938 Purchases, net — Originations (A) 215,939 Sales 671 Change in fair value due to: Realization of cash flows (B) (116,839) Change in valuation inputs and assumptions 201,014 Balance at March 31, 2024 $ 8,706,723 (A) Represents MSRs retained on the sale of originated residential mortgage loans. (B) Based on the paydown of the underlying residential mortgage loans. The following table summarizes components of servicing revenue, net: Three Months Ended 2024 (As Restated) 2023 (As Restated) Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 430,114 $ 439,050 Ancillary and other fees 39,777 30,607 Servicing fee revenue, net and fees 469,891 469,657 Change in fair value due to: Realization of cash flows (116,839) (105,691) Change in valuation inputs and assumptions, net of realized gains (losses) 201,014 (36,613) Servicing revenue, net $ 554,066 $ 327,353 The following table summarizes MSRs and MSR financing receivables by type as of March 31, 2024: UPB of Underlying Mortgages Weighted Average Life (Years) (A) Carrying Value (B) Agency $ 348,953,092 7.8 $ 5,477,522 Non-Agency 47,806,353 6.8 666,958 Ginnie Mae (C) 129,914,381 7.2 2,562,243 Total/Weighted Average $ 526,673,826 7.5 $ 8,706,723 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Represents fair value. As of March 31, 2024, weighted average discount rates of 8.5% (range of 7.9% – 10.8%) were used to value Rithm Capital’s MSRs and MSR financing receivables. (C) As of March 31, 2024, Rithm Capital holds approximately $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 Newrez, is an approved issuer of Ginnie Mae mortgage-backed securities (“MBS”) and 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. As a result, once the delinquency criteria have been met and regardless of whether the repurchase option has been exercised, the Company accounts for the loans as if they had been repurchased. The Company recognizes such loans and a corresponding liability in the Consolidated Balance Sheets. As of March 31, 2024, Rithm Capital reflected approximately $1.8 billion in residential mortgage loans subject to repurchase and residential mortgage loans repurchase liability on its Consolidated Balance Sheets. Rithm Capital may re-pool repurchased loans into new Ginnie Mae securitizations upon re-performance of the loan or otherwise sell to third-party investors. The Company does not change the accounting for MSRs related to previously sold loans upon recognizing loans eligible for repurchase. Rather, upon repurchase of a loan, the MSR is written off. As of March 31, 2024, Rithm Capital holds approximately $0.5 billion of such repurchased loans presented within Residential mortgage loans, held for sale on its Consolidated Balance Sheets. Ocwen MSR Financing Receivable Transactions In July 2017, Ocwen Loan Servicing, LLC (collectively with certain affiliates, “Ocwen”, and subsequently PHH Mortgage Corporation (“PHH”) (as successor by merger to Ocwen)) and Rithm Capital entered into an agreement to transfer from Ocwen to Rithm Capital of Ocwen’s remaining interests in the MSRs relating to loans with an aggregate UPB of approximately $110.0 billion and with respect to which Rithm Capital already held certain rights (“Rights to MSRs”). Additionally, in January 2018, Ocwen sold and transferred to Rithm Capital certain Rights to MSRs and other assets related to MSRs for loans with a UPB of approximately $86.8 billion, of which approximately $11.1 billion UPB, as March 31, 2024, of underlying loans consents have not been received and all other conditions to transfer have not been met and, accordingly, are recorded as MSR financing receivables. Geographic Distributions 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 March 31, 2024 December 31, 2023 California 17.0 % 17.1 % Florida 8.6 % 8.6 % Texas 6.2 % 6.2 % New York 6.0 % 6.0 % Washington 5.7 % 5.8 % New Jersey 4.3 % 4.3 % Virginia 3.7 % 3.6 % Maryland 3.4 % 3.4 % Illinois 3.3 % 3.3 % Georgia 3.0 % 3.0 % Other US 38.8 % 38.7 % 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 Newrez performs servicing of residential mortgage loans for unaffiliated parties under servicing agreements. The servicing agreements do not meet the criteria to be recognized as a servicing right asset and, therefore, are not recognized in the Consolidated Balance Sheets. The UPB of residential mortgage loans serviced for others as of March 31, 2024 and 2023 was $111.3 billion and $94.1 billion, respectively. Rithm Capital earned servicing revenue of $38.1 million and $34.0 million for the three months ended March 31, 2024 and 2023, respectively, related to unaffiliated subserviced loans which is presented within Servicing revenue, net in the Consolidated Statements of Operations. In relation to certain owned MSRs, Rithm Capital engages unaffiliated licensed mortgage servicers as subservicers to perform the operational servicing duties, including recapture activities, in exchange for a subservicing fee, which is recognized as subservicing expense and presented as part of General and administrative expenses in the Consolidated Statements of Operations. As of March 31, 2024, PHH and Valon Mortgage, Inc. (“Valon”) subservice 8.5% and 4.8%, respectively, of MSRs owned by Rithm Capital. The remaining 86.7% of owned MSRs are serviced by Newrez (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 table below summarizes the type of advances included in the servicer advances receivable: March 31, 2024 December 31, 2023 Principal and interest advances $ 592,660 $ 616,801 Escrow advances (taxes and insurance advances) 1,283,083 1,442,697 Foreclosure advances 775,190 767,171 Total (A)(B)(C) $ 2,650,933 $ 2,826,669 (A) Includes $529.6 million and $585.0 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B) Includes $372.2 million and $405.6 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 value through a non-reimbursable advance loss assumption. (C) Excludes $64.5 million and $66.4 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., ranks “top of the waterfall”) and Rithm Capital is generally entitled to repayment from the respective loan or REO liquidation proceeds before any interest or principal is paid on the notes issued by the trust. In most cases, advances in excess of respective the 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 provisioned $93.2 million, or 3.5%, and $93.7 million, or 3.3%, for expected non-recovery of advances as of March 31, 2024 and December 31, 2023, respectively. The following table summarizes servicer advances provision activity during the quarter: Balance at December 31, 2023 $ 93,681 Provision 7,217 Write-offs (7,654) Balance at March 31, 2024 $ 93,244 See Note 19 regarding the financing of MSRs and servicer advances receivable. For a discussion of the restatement, refer to Note 3. |
SERVICER ADVANCE INVESTMENTS
SERVICER ADVANCE INVESTMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Investments, All Other Investments [Abstract] | |
SERVICER ADVANCE INVESTMENTS | SERVICER ADVANCE INVESTMENTS 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 under the fair value option election to provide users of the financial statements with better information regarding the effects of market factors. Mr. Cooper or SLS, as applicable, as servicer, performs all of the servicing and advancing functions on the Company’s servicer advance assets, retains the ancillary income and assumes servicing obligations and liabilities as the servicer of the underlying loans in the portfolio. On October 2, 2023, Rithm Capital entered into a definitive agreement with Computershare Limited with respect to the Computershare Acquisition, which closed on May 1, 2024 (Note 27) for a purchase price of approximately $720 million. As part of the transaction, Rithm Capital acquired MSRs owned by SLS underlying the servicer advance investment, which will be reclassified to a full MSR during the second quarter. The servicer advance investment to be reclassified have a fair value of $9.7 million at March 31, 2024. A taxable wholly-owned subsidiary of Rithm Capital is the managing member of Advance Purchaser LLC (“Advance Purchaser”), a joint venture entity and a subsidiary of the Company, and owns an approximately 89.3% interest in Advance Purchaser as of March 31, 2024 and December 31, 2023. Advance Purchaser was established in December 2013 for the purpose of investing in residential mortgage related advances. As of March 31, 2024, the noncontrolling third-party co-investors and Rithm Capital have funded their capital commitments. Advance Purchaser may recall $71.5 million and $597.9 million of capital distributed to the third-party co-investors and Rithm Capital, respectively. Neither the third-party co-investors nor Rithm Capital is obligated to fund amounts in excess of their respective capital commitments, regardless of the capital requirements of Advance Purchaser. The Company’s servicer advance investments are presented in Other assets on the Consolidated Balance Sheets. The following table summarizes servicer advance investments, including the right to the basic fee component of the related MSRs: Amortized Cost Basis Carrying Value (A) Weighted Average Discount Rate Weighted Average Yield Weighted Average Life (Years) (B) March 31, 2024 Servicer advance investments $ 352,275 $ 374,511 6.2 % 7.0 % 8.4 December 31, 2023 Servicer advance investments $ 362,760 $ 376,881 6.2 % 6.6 % 8.1 (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 March 31, 2024 Servicer advance investments (D) $ 14,871,701 $ 313,271 2.1 % $ 270,705 84.1 % 81.7 % 7.3 % 6.9 % December 31, 2023 Servicer advance investments (D) $ 15,499,559 $ 320,630 2.1 % $ 278,845 84.1 % 81.9 % 7.5 % 6.9 % (A) Based on outstanding servicer advances, excluding purchased but unsettled servicer advances. (B) Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve. (C) Annualized measure of the cost associated with borrowings. Gross cost of funds primarily includes interest expense and facility fees. Net cost of funds excludes facility fees. (D) The following table summarizes the types of advances included in servicer advance investments: March 31, 2024 December 31, 2023 Principal and interest advances $ 54,452 $ 57,909 Escrow advances (taxes and insurance advances) 145,846 149,346 Foreclosure advances 112,973 113,375 Total $ 313,271 $ 320,630 |
REAL ESTATE AND OTHER SECURITIE
REAL ESTATE AND OTHER SECURITIES (AS RESTATED) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE AND OTHER SECURITIES (AS RESTATED) | REAL ESTATE AND OTHER SECURITIES (AS RESTATED) Agency RMBS (“Agency”) are RMBS issued by the GSEs or Ginnie Mae. Non-Agency securities (“Non-Agency”) are issued by either public trusts or private label securitization entities. The following table summarizes real estate and other securities by designation: March 31, 2024 (As Restated) December 31, 2023 (As Restated) Gross Unrealized Weighted Average Outstanding Face Amount Gains Losses Carrying Value (A) Number of Securities Coupon (B) Yield Life (Years) (C) Carrying Value (A) Securities designated as available for sale (“AFS”): Agency (D) $ 73,387 $ — $ — $ 64,331 1 3.5 % 3.5 % 10.8 $ 65,496 Non-Agency (E)(F) 2,409,685 70,861 (25,123) 332,146 308 3.5 % 3.9 % 5.2 337,427 Securities measured at fair value through net income: Agency (D) 9,678,119 41,444 (24,684) 9,501,879 46 5.1 % 5.1 % 11.0 8,467,634 US Treasury (D) 4,500,000 — (8,759) 4,472,656 7 4.3 % 4.3 % 4.1 — Non-Agency (E)(F) 7,331,641 23,312 (41,342) 461,389 421 2.3 % 7.2 % 4.3 466,602 Total/Weighted Average 23,992,832 135,617 (99,908) 14,832,401 783 4.8 % 4.9 % 7.1 $ 9,337,159 (A) Fair value is equal to the carrying value for all securities. See Note 20 regarding the fair value measurements. (B) Excludes residual bonds with a carrying value of $30.1 million for which no coupon payment is expected. (C) Based on the timing of expected principal reduction on the assets. (D) The total outstanding face amount was $14.3 billion for fixed-rate securities as of March 31, 2024. (E) The total outstanding face amount was $7.4 billion (including $6.7 billion of residual) for fixed-rate securities and $2.3 billion (including $2.0 billion of residual) for floating rate securities as of March 31, 2024. (F) Includes other asset-backed securities consisting primarily of (i) collateralized loan obligations backed by corporate debt and commercial MBSs (fair value option securities), (ii) bonds backed by consumer loans (AFS securities), and (iii) interest-only securities and servicing strips (AFS or fair value option securities). These securities are detailed in the table below: Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Gains Losses Carrying Value Number of Securities Coupon Yield Life (Years) Consumer loan bonds 280 259 — 259 1 N/A N/A 1.5 Interest-only securities 3,706,086 7,598 (23,232) 70,026 113 1.0 % 10.9 % 2.3 Servicing strips 2,431,838 3,351 (466) 20,078 50 — % 14.9 % 6.2 Commercial MBSs 3,845 194 — 3,901 2 7.9 % 7.9 % 1.2 CLOs 215,412 4,425 (2,403) 211,996 194 5.5 % 8.7 % 8.6 The following table summarizes real estate and other securities, held to maturity: March 31, 2024 December 31, 2023 Weighted Average Outstanding Face Amount Amortized Cost / Carrying Value Fair Value Unrecognized Gains /(Losses) Number of Securities Yield Life (Years) Carrying Treasury Bills Designated as Held to Maturity (HTM): Treasury $ 25,000 $ 24,885 $ 24,886 $ 1 1 5.4 % 0.1 $ 24,553 The following table summarizes purchases and sales of real estate and other securities, as restated: Three Months Ended March 31, 2024 2023 (in millions) Treasury (A) Agency Non-Agency Treasury (A) Agency Non-Agency Purchases Face $ 4,800.0 $ 1,287.0 $ 17.7 $ — $ 2,162.4 $ 25.2 Purchase price 4,773.9 1,255.9 17.6 — 2,154.4 2.4 Sales Face $ — $ — $ — $ — $ 1,462.4 $ — Amortized cost — — — — 1,442.8 — Sale price — — — — 1,395.9 — Realized gain (loss) — — — — (46.9) — (A) Excludes treasury short sales. Refer to Note 18 for information regarding short sales. As of March 31, 2024, Rithm Capital has purchased $1.3 billion face amount of Agency RMBS for $1.3 billion and $14.0 million face amount of Non-Agency RMBS for $13.9 million, each of which had not yet been settled as of the reporting date. Unsettled purchases are recorded on a trade date basis and presented within Payable for investments purchased on the Consolidated Balance Sheets. Prior to March 31, 2024, Rithm Capital exercised its call rights with respect to certain 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 notes 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’ terminations. The following table summarizes certain information for RMBS designated as AFS in an unrealized loss position as of March 31, 2024, as restated: March 31, 2024 December 31, 2023 Securities in an Unrealized Loss Position Outstanding Face Amount Amortized Cost Basis Gross Unrealized Losses Carrying Value Number of Securities Weighted Average Carrying Value Before Credit Impairment Credit Impairment (A) After Credit Impairment Coupon Yield Life Less than 12 Months $ 38,678 $ 37,051 $ (21) $ 37,030 $ (4,486) $ 32,544 28 2.8 % 4.2 % 6.3 $ 49,069 12 or More Months 290,243 269,086 (10,663) 258,423 (20,637) 237,786 140 3.7 % 3.7 % 6.2 231,309 Total/Weighted Average $ 328,921 $ 306,137 $ (10,684) $ 295,453 $ (25,123) $ 270,330 168 3.6 % 3.8 % 6.2 $ 280,378 (A) Represents credit impairment on securities in an unrealized loss position as of March 31, 2024. 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: March 31, 2024 (As Restated) December 31, 2023 (As Restated) 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 intended to sell $ — $ — $ — $ — $ — $ — $ — $ — Securities that are more likely than not required to be sold (C) — — — — — — — — Securities with no intent to sell and are not more likely than not required to be sold: Credit impaired securities 64,525 64,591 (10,684) (66) 65,697 66,377 (10,152) (680) Non-credit impaired securities 205,805 230,862 — (25,057) 214,681 238,489 — (23,808) Total debt securities in an unrealized loss position $ 270,330 $ 295,453 $ (10,684) $ (25,123) $ 280,378 $ 304,866 $ (10,152) $ (24,488) (A) Recognized 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 included in other comprehensive income (loss) in the Company’s Consolidated Statements of Comprehensive Income. (C) Rithm Capital may, at times, be more likely than not 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 makes 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 for the period 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, 2023 $ 1,183 $ 8,969 $ 10,152 Additions to the allowance for credit losses on securities for which credit losses were not previously recognized 21 — 21 Additions to the allowance for credit losses arising from purchases of AFS 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 for securities intended to be sold or are more likely than not required to be sold before recovery of its amortized cost basis — — — Additional increases (decreases) to the allowance for credit losses on securities with credit losses, or an allowance recognized in a previous period 595 (84) 511 Write-offs charged against the allowance — — — Recoveries of amounts previously written off — — — Allowance for credit losses on available-for-sale debt securities at March 31, 2024 $ 1,799 $ 8,885 $ 10,684 See Note 19 regarding the financing of Real Estate and Other Securities. For a discussion of the restatement, refer to Note 3. |
RESIDENTIAL MORTGAGE LOANS (AS
RESIDENTIAL MORTGAGE LOANS (AS RESTATED) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
RESIDENTIAL MORTGAGE LOANS (AS RESTATED) | RESIDENTIAL MORTGAGE LOANS (AS RESTATED) Rithm Capital accumulates its residential mortgage loan portfolio through originations, bulk acquisitions and the execution of call rights. A majority of the residential mortgage loan portfolio is serviced by Newrez. Loans are accounted for based on Rithm Capital’s strategy and intent for the loan and on whether the loan was credit-impaired at the date of acquisition. As of March 31, 2024, Rithm Capital accounts for loans based on the following categories: • Loans held-for-investment (“HFI”), at fair value • Loans held-for-sale (“HFS”), at lower of cost or fair value • Loans HFS, at fair value • Investments of consolidated CFEs represent mortgage loans held by certain private label mortgage securitization trusts where Rithm Capital is determined to be a primary beneficiary and, as a result, consolidates such trusts. The assets are measured based on the fair value of the more observable liabilities of such trusts under the CFE election. The assets can only be used to settle obligations and liabilities of such trusts for which creditors do not have recourse to Rithm Capital Corp. The following table summarizes residential mortgage loans outstanding by loan type: March 31, 2024 (As Restated) December 31, 2023 (As Restated) Outstanding Face Amount Carrying Loan Weighted Average Yield Weighted Average Life (Years) (A) Carrying Value Investments of consolidated CFEs (E) $ 3,453,537 $ 3,257,446 9,397 5.6 % 26.8 $ 3,038,587 Residential mortgage loans, held-for-investment, at fair value $ 434,474 $ 365,398 8,070 8.1 % 5.2 $ 379,044 Acquired performing loans (B) 64,851 54,056 1,841 8.0 % 5.3 57,038 Acquired non-performing loans (C) 24,609 20,359 302 8.5 % 6.0 21,839 Total residential mortgage loans, HFS, at lower of cost or market $ 89,460 $ 74,415 2,143 8.1 % 5.5 $ 78,877 Acquired performing loans (B)(D) $ 542,335 $ 490,552 2,979 5.7 % 15.8 $ 400,603 Acquired non-performing loans (C)(D) 294,077 271,316 1,501 4.8 % 23.1 204,950 Originated loans 2,864,943 2,929,832 9,029 6.8 % 29.5 1,856,312 Total residential mortgage loans, HFS, at fair value $ 3,701,355 $ 3,691,700 13,509 6.5 % 27.0 $ 2,461,865 Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market $ 3,790,815 $ 3,766,115 15,652 $ 2,540,742 (A) For loans classified as Level 3 in the fair value hierarchy, the weighted average life is based on the expected timing of the receipt of cash flows. For Level 2 loans, the weighted average life is based on the contractual term of the loan. (B) Performing loans are generally placed on non-accrual status when principal or interest is 90 days or more past due. (C) As of March 31, 2024, Rithm Capital has placed non-performing loans, HFS on non-accrual status, except as described in (D) below. (D) Includes $228.6 million and $222.7 million UPB of Ginnie Mae early buyout options performing and non-performing loans, respectively, on accrual status as contractual cash flows are guaranteed by the FHA. (E) Residential mortgage loans of consolidated CFEs are classified as Level 2 in the fair value hierarchy and valued based on the fair value of the more observable financial liabilities under the CFE election. The following table summarizes the geographic distribution of Residential mortgage loans, held-for-sale and Residential mortgage loans, held-for-investment at fair value on the Consolidated Balance Sheets: Percentage of Total Outstanding Unpaid Principal Amount State Concentration March 31, 2024 December 31, 2023 California 10.3 % 8.3 % Florida 9.8 % 9.3 % Texas 8.2 % 9.5 % New York 6.3 % 8.0 % Georgia 4.8 % 4.9 % North Carolina 3.7 % 3.2 % Illinois 3.6 % 3.5 % New Jersey 3.6 % 3.9 % Virginia 3.4 % 3.6 % Maryland 3.2 % 3.3 % Other US 43.1 % 42.5 % 100.0 % 100.0 % See Note 19 regarding the financing of residential mortgage loans. The following table summarizes the difference between the aggregate UPB and the aggregate carrying value of Residential mortgage loans, held-for-sale and Residential mortgage loans, held-for-investment at fair value on the Consolidated Balance Sheets which are 90 days or more past due: March 31, 2024 December 31, 2023 Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB 90+ $ 382,646 $ 344,488 $ (38,158) $ 313,122 $ 281,556 $ (31,566) The following table summarizes the activity for the period of Residential mortgage loans, held-for-sale and Residential mortgage loans, held-for-investment at fair value on the Consolidated Balance Sheets: Loans HFI, at Fair Value Loans HFS, at Lower of Cost or Fair Value Loans HFS, at Fair Value Total Balance at December 31, 2023 (As Restated) $ 379,044 $ 78,877 $ 2,461,865 $ 2,919,786 Originations — — 10,869,683 10,869,683 Sales — — (9,849,739) (9,849,739) Purchases/additional fundings — — 502,625 502,625 Proceeds from repayments (11,854) (3,330) (10,029) (25,213) Transfer of loans (to) from other assets (A) — (364) (285,165) (285,529) Transfer of loans to REO (994) (561) (2,204) (3,759) Impairment (loss) reversal — (207) — (207) Fair value adjustments due to: Changes in instrument-specific credit risk (3,475) — (390) (3,865) Other factors 2,677 — 5,054 7,731 Balance at March 31, 2024 (As Restated) $ 365,398 $ 74,415 $ 3,691,700 $ 4,131,513 (A) Includes loans transferred to consolidated CFEs. Net Interest Income The following table summarizes the net interest income for Residential mortgage loans, held-for-sale and Residential mortgage loans, held-for-investment at fair value on the Consolidated Balance Sheets: Three Months Ended 2024 2023 Interest income: Loans HFI, at fair value $ 7,857 $ 9,509 Loans HFS, at lower of cost or fair value 861 1,504 Loans HFS, at fair value 36,016 37,286 Total interest income $ 44,734 $ 48,299 Interest expense: Loans HFI, at fair value 4,224 4,670 Loans HFS, at lower of cost or fair value 716 907 Loans HFS, at fair value 37,238 42,779 Total interest expense $ 42,178 $ 48,356 Net interest income $ 2,556 $ (57) Gain on Originated Residential Mortgage Loans, HFS, Net Newrez originates conventional, government-insured and nonconforming residential mortgage loans for sale and securitization. In connection with the sale or securitization of loans to the GSEs or mortgage investors, Rithm Capital reports gain on originated residential mortgage loans, HFS, net in the Consolidated Statements of Operations. The following table summarizes the components of gain on originated residential mortgage loans, HFS, net: Three Months Ended 2024 (As Restated) 2023 (As Restated) Gain (loss) on residential mortgage loans originated and sold, net (A) $ (124,113) $ (34,314) Gain (loss) on settlement of residential mortgage loan origination derivative instruments (B) (15,524) 9,904 MSRs retained on transfer of residential mortgage loans (C) 215,939 140,513 Other (D) 6,493 (5,443) Realized gain on sale of originated residential mortgage loans, net $ 82,795 $ 110,660 Change in fair value of residential mortgage loans 14,268 31,598 Change in fair value of interest rate lock commitments (Note 18) 7,485 26,240 Change in fair value of derivative instruments (Note 18) 37,910 (59,230) Gain on originated residential mortgage loans, HFS, net $ 142,458 $ 109,268 (A) Includes residential mortgage loan origination fees of $177.7 million and $68.9 million for the three months ended March 31, 2024 and 2023, respectively. (B) Represents settlement of forward securities delivery commitments utilized as an economic hedge for mortgage loans not included within forward loan sale commitments. (C) Represents the initial fair value of the capitalized MSRs upon loan sales with servicing retained. (D) Includes fees for services associated with the residential mortgage loan origination process. For a discussion of the restatement, refer to Note 3. |
CONSUMER LOANS
CONSUMER LOANS | 3 Months Ended |
Mar. 31, 2024 | |
Investments In Consumer Loans Equity Method Investees [Abstract] | |
CONSUMER LOANS | CONSUMER LOANS Rithm Capital’s consumer loan portfolio consists of (i) consumer loans purchased from Goldman Sachs Bank USA (the “Marcus loans” or “Marcus”) in June 2023 and (ii) a co-investment (as of March 31, 2024, Rithm Capital owns 53.5% in a portfolio of consumer loans purchased from SpringCastle (the “SpringCastle loans” or “SpringCastle”). The Marcus loans portfolio includes unsecured fixed-rate closed-end installment loans, and the SpringCastle loans portfolio includes personal unsecured loans and personal homeowner loans. The Marcus loans are serviced by Systems & Services Technologies, Inc. and the SpringCastle loans are serviced by OneMain Holdings Inc. The following table summarizes characteristics of the consumer loan portfolio measured at fair value: Unpaid Principal Balance Carrying Value Weighted Average Coupon Weighted Average Expected Life (Years) March 31, 2024 SpringCastle $ 246,553 $ 267,948 18.2 % 3.8 Marcus 908,089 835,851 10.1 % 1.0 Total consumer loans $ 1,154,642 $ 1,103,799 11.8 % 1.6 December 31, 2023 SpringCastle $ 260,102 $ 285,632 18.2 % 3.7 Marcus 1,048,672 988,373 10.5 % 1.2 Total consumer loans $ 1,308,774 $ 1,274,005 12.0 % 1.7 See Note 19 regarding the financing of consumer loans. The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of consumer loans: March 31, 2024 December 31, 2023 Days Past Due UPB Carrying Value (A) Carrying Value Over (Under) UPB UPB Carrying Value (A) Carrying Value Over (Under) UPB SpringCastle Current $ 241,454 $ 262,483 $ 21,029 $ 255,441 $ 280,577 $ 25,136 90+ 5,099 5,465 366 4,661 5,055 394 Total SpringCastle $ 246,553 $ 267,948 $ 21,395 $ 260,102 $ 285,632 $ 25,530 Marcus Current $ 842,297 $ 775,293 $ (67,004) $ 1,014,404 $ 956,076 $ (58,328) 90+ 65,792 60,558 (5,234) 34,268 32,297 (1,971) Total Marcus $ 908,089 $ 835,851 $ (72,238) $ 1,048,672 $ 988,373 $ (60,299) $ 1,154,642 $ 1,103,799 $ (50,843) $ 1,308,774 $ 1,274,005 $ (34,769) (A) Consumer loans are carried at fair value under the fair value option election. See Note 20 regarding fair value measurements. The following table summarizes the activity for consumer loans for the period: Total Balance at December 31, 2023 $ 1,274,005 Purchases — Additional fundings (A) 4,113 Proceeds from repayments (154,354) Accretion of loan discount and premium amortization, net 10,152 Fair value adjustments due to: Changes in instrument-specific credit risk (22,961) Other factors (7,156) Balance at March 31, 2024 $ 1,103,799 (A) Represents draws on consumer loans with revolving privileges. |
SINGLE-FAMILY RENTAL PROPERTIES
SINGLE-FAMILY RENTAL PROPERTIES | 3 Months Ended |
Mar. 31, 2024 | |
Real Estate [Abstract] | |
SINGLE-FAMILY RENTAL PROPERTIES | SINGLE-FAMILY RENTAL PROPERTIES Rithm Capital invests in its SFR portfolio by acquiring and maintaining a geographically diversified portfolio of high-quality single-family homes and leasing them to high-quality residents. SFR properties HFI are carried at cost less accumulated depreciation and impairment and are presented within Single-family rental properties on the Consolidated Balance Sheets. SFR properties HFS are managed for near term sale and disposition. They are measured at the lower of cost less accumulated depreciation and impairment or fair value less estimated cost to sell and presented within Single-family rental properties on the Consolidated Balance Sheets. For the three months ended March 31, 2024, Rithm Capital transferred one SFR property to HFS. The following table summarizes the net carrying value of investments in SFR properties. March 31, 2024 December 31, 2023 Land $ 185,446 $ 183,359 Building 741,785 733,437 Capital improvements 141,288 138,869 Total gross investment in SFR properties 1,068,519 1,055,665 Accumulated depreciation (61,347) (53,737) Investment in SFR properties, net $ 1,007,172 $ 1,001,928 Depreciation expense for the three months ended March 31, 2024 and 2023 totaled $7.7 million and $6.9 million, respectively, and is included in other income (loss), net in the Consolidated Statements of Operations. As of March 31, 2024 and December 31, 2023, the carrying amount of the SFR properties includes capitalized acquisition costs of $7.4 million and $7.5 million, respectively. The following table summarizes the activity for the period related to the net carrying value of investments in SFR properties: SFR Properties HFI SFR Properties HFS Total Balance at December 31, 2023 $ 1,000,357 $ 1,571 $ 1,001,928 Acquisitions and capital improvements 15,249 — 15,249 Transfers to HFS (150) 150 — Dispositions (1,140) (1,123) (2,263) Accumulated depreciation (7,660) (82) (7,742) Balance at March 31, 2024 $ 1,006,656 $ 516 $ 1,007,172 Rithm Capital generally rents its SFR properties under non-cancelable lease agreements with a term of one Remainder of 2024 $ 36,521 2025 and thereafter 9,217 Total $ 45,738 The following table summarizes the activity for the period of the SFR portfolio by units: SFR Properties HFI SFR Properties HFS Total Balance at December 31, 2023 3,882 6 3,888 Acquisition of SFR units 48 — 48 Transfer to HFS (1) 1 — Disposition of SFR units (4) (4) (8) Balance at March 31, 2024 3,925 3 3,928 See Note 19 regarding the financing of SFR Properties. |
MORTGAGE LOANS RECEIVABLE (AS R
MORTGAGE LOANS RECEIVABLE (AS RESTATED) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
MORTGAGE LOANS RECEIVABLE (AS RESTATED) | MORTGAGE LOANS RECEIVABLE (AS RESTATED) Genesis specializes in originating and managing a portfolio of primarily short-term mortgage loans to fund the construction and development of, or investment in, residential properties. On August 24, 2023, Rithm Capital acquired a portfolio of loans from Morgan Stanley Bank, N.A. with a face value of $148.4 million. The portfolio consists of fixed-rate bridge and renovation loans and is master serviced by Genesis. The following table summarizes Mortgage loans receivable, at fair value and mortgage loans receivable held by consolidated CFEs by loan type as of March 31, 2024, as restated: Mortgage Loans Receivable - Carrying Value (A) Mortgage Loans Receivable of Consolidated CFEs - Carrying Value (A) Total Carrying % of Portfolio Loan % of Portfolio Weighted Average Yield Weighted Average Original Life (Months) Weighted Average Committed Loan Balance to Value (B) Construction $ 882,159 $ 165,529 $ 1,047,688 43.9 % 365 26.1 % 10.9 % 16.8 73.4% / 62.3% Bridge 890,610 146,446 1,037,056 43.5 % 638 45.7 % 9.9 % 27.2 68.1% Renovation 270,144 29,856 300,000 12.6 % 394 28.2 % 10.3 % 12.6 81.2% / 68.4% $ 2,042,913 $ 341,831 $ 2,384,744 100.0 % 1,397 100.0 % 10.4 % 20.5 N/A (A) Mortgage loans receivable are carried at fair value under the fair value option election. Mortgage loans of consolidated CFEs are classified as Level 2, as their value is based on the fair value of the more observable financial liabilities of consolidated CFEs. Mortgage loans of consolidated CFEs are classified as Level 2, as their value is based on the fair value of the more observable financial liabilities of consolidated CFEs. See Note 20 regarding fair value measurements. (B) Weighted by commitment LTV for bridge loans, loan-to-cost and loan-to-after-repair-value for construction and renovation loans. The following table summarizes the activity for the period of Mortgage loans receivable, at fair value on the Consolidated Balance Sheets: Balance at December 31, 2023 (As Restated) $ 1,879,319 Initial loan advances 468,804 Construction holdbacks and draws 180,893 Paydowns and payoffs (423,269) Fair value adjustments 14,873 Purchased loans discount amortization 588 Transfer of loans to REO (840) Transfers from (to) assets of consolidated CFEs (77,455) Balance at March 31, 2024 (As Restated) $ 2,042,913 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’s default on a mortgage loan or other secured or unsecured loan. Severity risk includes the risk of loss of value of the property or other asset, if any, securing the loan, as well as the risk of loss associated with taking over the property or other asset, if any, including foreclosure costs. The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets: March 31, 2024 (As Restated) December 31, 2023 (As Restated) Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB Current $ 1,987,674 $ 2,003,046 $ 15,372 $ 1,838,935 $ 1,837,513 $ (1,422) 90+ 41,264 39,867 (1,397) 41,869 41,806 (63) The following table summarizes the geographic distribution of the loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets as of March 31, 2024, as restated: Percentage of Total State Concentration March 31, 2024 December 31, 2023 California 49.1 % 47.8 % Washington 7.0 % 7.9 % Florida 6.8 % 7.8 % New York 6.7 % 6.7 % Georgia 5.1 % 2.5 % Arizona 4.1 % 4.8 % Virginia 3.8 % 4.1 % Illinois 3.3 % 2.7 % Texas 2.6 % 2.7 % Colorado 2.3 % 3.1 % Other US 9.2 % 9.9 % 100.0 % 100.0 % See Note 19 regarding the financing of mortgage loans receivable. For a discussion of the restatement, refer to Note 3. |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (AS RESTATED) | 3 Months Ended |
Mar. 31, 2024 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (AS RESTATED) | CASH, CASH EQUIVALENTS AND RESTRICTED CASH (AS RESTATED) Rithm Capital considers all highly liquid short-term investments with maturities of 90 days or less when purchased to be cash equivalents. Substantially all amounts on deposit with major financial institutions exceed insured limits. Restricted cash consists of cash collateral pledges related to secured financing and securitizations. 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 amounts shown in the Consolidated Statements of Cash Flows: March 31, 2024 (As Restated) December 31, 2023 (As Restated) Cash and cash equivalents $ 1,136,437 $ 1,287,199 Restricted cash 382,939 378,048 Restricted cash of consolidated CFEs (A) 38,618 31,848 Total cash, cash equivalents and restricted cash $ 1,557,994 $ 1,697,095 (A) Presented within Investments, at fair value and other assets on the Consolidated Balance Sheets. The following table summarizes restricted cash balances by reporting segment: March 31, 2024 (As Restated) December 31, 2023 (As Restated) Investment Portfolio (A) $ 109,809 $ 150,432 Origination and Servicing 237,186 195,490 Mortgage Loans Receivable (A) 55,458 37,805 Asset Management (A) 19,104 26,169 Total restricted cash $ 421,557 $ 409,896 (A) Includes restricted cash related to consolidated CFEs presented within Investments, at fair value and other assets on the Consolidated Balance Sheets. For a discussion of the restatement, refer to Note 3. |
OTHER ASSETS AND LIABILITIES (A
OTHER ASSETS AND LIABILITIES (AS RESTATED) | 3 Months Ended |
Mar. 31, 2024 | |
Other Income Assets And Liabilities [Abstract] | |
OTHER ASSETS AND LIABILITIES (AS RESTATED) | OTHER ASSETS AND LIABILITIES (AS RESTATED) Other Assets and Accrued Expenses and Other Liabilities consist of the following: Other Assets Accrued Expenses March 31, 2024 December 31, 2023 (As Restated) March 31, 2024 December 31, 2023 (As Restated) Deferred tax asset 284,950 279,019 Accounts payable 117,827 165,144 Derivative and hedging assets (Note 18) 39,555 28,080 Accrued compensation and benefits 112,002 290,464 Due from related parties 22,147 32,319 Deferred tax liability 898,040 801,857 Equity investments (A) 201,624 173,882 Derivative liabilities (Note 18) 33,586 51,765 Excess MSRs, at fair value (Note 5) 255,111 271,150 Escheat payable 161,717 169,914 Goodwill (Note 16) (B) 131,857 131,857 Interest payable 149,332 166,620 Income and fees receivable 49,829 59,134 Lease liability (Note 18) 151,493 159,236 Intangible assets (Note 16) 368,967 387,920 Unearned income and fees 38,993 37,468 Loans receivable, at fair value (C) 27,997 31,323 Other liabilities 221,537 223,293 Margin receivable, net (D) 52,316 75,947 $ 1,884,527 $ 2,065,761 Notes receivable, at fair value (E) 364,977 398,227 Operating lease right-of-use assets (Note 17) 96,706 104,207 Other receivables 144,072 152,046 Prepaid expenses 65,463 62,513 Principal and interest receivable 196,667 168,517 Property and equipment 39,010 40,038 Real Estate Owned 29,447 15,507 Servicer advance investments, at fair value (Note 7) 374,511 376,881 Servicing fee receivables 145,052 156,777 Warrants, at fair value 18,073 16,599 Other assets 203,355 182,880 $ 3,111,686 $ 3,144,823 (A) Represents equity investments in (i) commercial redevelopment projects and (ii) operating companies providing services throughout the real estate industry, including investments in Covius Holding Inc., a provider of various technology-enabled services to the mortgage and real estate sectors, preferred stock of Valon, a residential mortgage servicing and technology company, and preferred stock of Covalto Ltd. (formerly known as Credijusto Ltd.), a financial services company and (iii) funds managed by Sculptor. (B) Includes goodwill derived from the acquisition of Newrez, Guardian, Genesis and Sculptor. (C) Represents loans made pursuant to a senior credit agreement and a senior subordinated credit agreement to an entity affiliated with funds managed by an affiliate of the Former Manager. The loans are accounted for under the fair value option. (D) 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. (E) Represents notes receivable secured by commercial properties. The notes are accounted for under the fair value option. REO — REO assets are individual properties acquired by Rithm Capital or where Rithm Capital receives the property as a result of foreclosure of the underlying loan. Rithm Capital measures REO assets at the lower of cost or fair value, with valuation provision recorded in Other income in the Consolidated Statements of Operations. REO assets are managed for prompt sale and disposition. The following table presents activity for the period related to the carrying value of investments in REO: Balance at December 31, 2023 $ 15,507 Purchases 5,763 Property received in satisfaction of loan 14,154 Sales (A) (6,254) Valuation (provision) reversal 277 Balance at March 31, 2024 $ 29,447 (A) Recognized when control of the property has transferred to the buyer. As of March 31, 2024, Rithm Capital had residential mortgage loans and mortgage loans receivable that were in the process of foreclosure with UPBs of $60.7 million and $31.0 million, respectively. Notes and Loans Receivable — The following table summarizes the activity for the period for notes and loans receivable: Notes Receivable Loans Receivable Total Balance at December 31, 2023 $ 398,227 $ 31,323 $ 429,550 Fundings — — — Payment in Kind — 1,094 1,094 Proceeds from repayments (33,250) (4,420) (37,670) Fair value adjustments due to: Changes in instrument-specific credit risk — — — Other factors — — — Balance at March 31, 2024 $ 364,977 $ 27,997 $ 392,974 The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of notes and loans receivable: March 31, 2024 December 31, 2023 Days Past Due UPB Carrying Value (A) Carrying Value Over (Under) UPB UPB Carrying Value (A) Carrying Value Over (Under) UPB Current $ 531,394 $ 392,974 $ (138,420) $ 565,786 $ 429,550 $ (136,236) 90+ — — — — — — (A) Notes and loans receivable are carried at fair value. See Note 20 regarding fair value measurements. For a discussion of the restatement, refer to Note 3. |
EXPENSES, REALIZED AND UNREALIZ
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES), NET AND OTHER (AS RESTATED) | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES), NET AND OTHER (AS RESTATED) | EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES), NET AND OTHER (AS RESTATED) Other Revenues consists of the following: Three Months Ended 2024 2023 Property and maintenance $ 32,380 $ 33,637 Rental 18,949 18,123 Other 7,019 6,384 Total other revenues $ 58,348 $ 58,144 General and Administrative expenses consists of the following: Three Months Ended 2024 (As Restated) 2023 (As Restated) Legal and professional $ 21,489 $ 12,755 Loan origination 15,435 11,757 Occupancy 17,048 18,366 Subservicing 19,428 35,256 Loan servicing 5,591 3,300 Property and maintenance 32,264 24,035 Information technology 41,202 34,968 Other 44,737 27,042 Total general and administrative expenses $ 197,194 $ 167,479 Other Income (Loss) The following table summarizes the components of other income (loss): Three Months Ended 2024 (As Restated) 2023 (As Restated) Real estate and other securities $ (102,963) $ 83,851 Residential mortgage loans and REO 3,526 18,097 Derivative and hedging instruments 41,932 (151,006) Notes and bonds payable 226 (2,500) Consolidated CFEs (A) 16,412 12,244 Other (B) (3,979) (26,591) Realized and unrealized gains (losses), net $ (44,846) $ (65,905) Other income (loss), net 7,926 (25,166) Total other income (loss) $ (36,920) $ (91,071) (A) Includes change in the fair value of the consolidated CFEs’ financial assets and liabilities and related interest and other income. (B) Includes excess MSRs, servicer advance investments, consumer loans and other. For a discussion of the restatement, refer to Note 3. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS As a result of acquisitions, the Company identified intangible assets in the form of management contracts, customer relationships, purchased technology, trademarks and trade names. The Company also recognized goodwill on certain acquisitions. Goodwill and intangible assets are presented within Other assets in the Consolidated Balance Sheets. The following table summarizes the carrying value of goodwill by reportable segment: Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Total Balance at December 31, 2023 $ 24,376 $ 5,092 $ 55,731 $ 46,658 $ 131,857 Goodwill acquired — — — — — Accumulated impairment loss — — — — — Balance at March 31, 2024 $ 24,376 $ 5,092 $ 55,731 $ 46,658 $ 131,857 The following table summarizes the acquired identifiable intangible assets: Estimated Useful Lives (Years) March 31, 2024 December 31, 2023 Gross Intangible Assets Management contracts 10 $ 275,000 $ 275,000 Customer relationships 3 to 9 57,949 57,949 Purchased technology 3 to 5 137,922 137,922 Trademarks / Trade names 1 to 5 10,259 10,259 $ 481,130 $ 481,130 Accumulated Amortization (A) Management contracts $ 10,240 $ 3,388 Customer relationships 27,424 17,834 Purchased technology 69,361 67,145 Trademarks / Trade names 5,138 4,843 $ 112,163 $ 93,210 Intangible Assets, Net Management contracts $ 264,760 $ 271,612 Customer relationships 30,525 40,115 Purchased technology (B) 68,561 70,777 Trademarks / Trade names (C) 5,121 5,416 $ 368,967 $ 387,920 (A) Amortization expense is presented within general and administrative expense on Rithm Capital’s Consolidated Statements of Operations. (B) Includes indefinite-lived intangible assets of $21.4 million and $21.4 million, respectively. (C) Includes indefinite-lived intangible assets of $1.9 million and $1.9 million, respectively. The Company did not record any impairment loss on its intangible assets for the period ending March 31, 2024. The following table summarizes the expected future amortization expense for acquired intangible assets as of March 31, 2024: Year Ending Amortization Expense April 1 through December 31, 2024 $ 57,294 2025 44,165 2026 37,657 2027 33,806 2028 32,305 2029 and thereafter 140,499 $ 345,726 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
LEASES | LEASES Rithm Capital, through its wholly-owned subsidiaries, has leases on office space expiring through 2033. Rent expense, net of sublease income for the three months ended March 31, 2024 and 2023 totaled $11.9 million and $12.2 million, respectively. The Company has leases that include renewal options and escalation clauses. The terms of the leases do not impose any financial restrictions or covenants. Operating lease right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term and lease liabilities represent obligations to make lease payments arising from the lease. In addition, the Company has finance leases for computer hardware. As of March 31, 2024, the Company has pledged collateral related to its lease obligations of $6.2 million, which is presented as part of restricted cash on the Consolidated Balance Sheets. Operating lease ROU assets and lease liabilities are presented as part of other assets accrued expenses and other liabilities The table below summarizes the future commitments under the non-cancelable leases: Year Ending Operating Leases Finance Leases Total April 1 through December 31, 2024 $ 31,076 $ — $ 31,076 2025 33,465 228 33,693 2026 26,992 228 27,220 2027 27,109 228 27,337 2028 23,818 — 23,818 2029 and thereafter 37,271 — 37,271 Total remaining undiscounted lease payments 179,731 684 180,415 Less: imputed interest 28,834 88 28,922 Total remaining discounted lease payments $ 150,897 $ 596 $ 151,493 The future commitments under the non-cancelable leases have not been reduced by the sublease rentals of $19.3 million due in the future periods. Other information related to leases is summarized below: March 31, 2024 December 31, 2023 Weighted average remaining lease term (years) Operating leases 5.7 5.8 Finance leases 3.3 3.5 Weighted average discount rate Operating leases 6.2 % 6.2 % Finance leases 7.9 % 7.9 % Three Months Ended Supplemental Information 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 11,411 $ 8,276 Operating cash flows - finance leases 4 — Finance cash flows - finance leases 224 — Supplemental non-cash information on lease liabilities arising from obtaining ROU assets: ROU assets obtained in exchange for new operating lease liabilities 126 — |
LEASES | LEASES Rithm Capital, through its wholly-owned subsidiaries, has leases on office space expiring through 2033. Rent expense, net of sublease income for the three months ended March 31, 2024 and 2023 totaled $11.9 million and $12.2 million, respectively. The Company has leases that include renewal options and escalation clauses. The terms of the leases do not impose any financial restrictions or covenants. Operating lease right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term and lease liabilities represent obligations to make lease payments arising from the lease. In addition, the Company has finance leases for computer hardware. As of March 31, 2024, the Company has pledged collateral related to its lease obligations of $6.2 million, which is presented as part of restricted cash on the Consolidated Balance Sheets. Operating lease ROU assets and lease liabilities are presented as part of other assets accrued expenses and other liabilities The table below summarizes the future commitments under the non-cancelable leases: Year Ending Operating Leases Finance Leases Total April 1 through December 31, 2024 $ 31,076 $ — $ 31,076 2025 33,465 228 33,693 2026 26,992 228 27,220 2027 27,109 228 27,337 2028 23,818 — 23,818 2029 and thereafter 37,271 — 37,271 Total remaining undiscounted lease payments 179,731 684 180,415 Less: imputed interest 28,834 88 28,922 Total remaining discounted lease payments $ 150,897 $ 596 $ 151,493 The future commitments under the non-cancelable leases have not been reduced by the sublease rentals of $19.3 million due in the future periods. Other information related to leases is summarized below: March 31, 2024 December 31, 2023 Weighted average remaining lease term (years) Operating leases 5.7 5.8 Finance leases 3.3 3.5 Weighted average discount rate Operating leases 6.2 % 6.2 % Finance leases 7.9 % 7.9 % Three Months Ended Supplemental Information 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 11,411 $ 8,276 Operating cash flows - finance leases 4 — Finance cash flows - finance leases 224 — Supplemental non-cash information on lease liabilities arising from obtaining ROU assets: ROU assets obtained in exchange for new operating lease liabilities 126 — |
DERIVATIVES AND HEDGING (AS RES
DERIVATIVES AND HEDGING (AS RESTATED) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING (AS RESTATED) | DERIVATIVES AND HEDGING (AS RESTATED) Rithm Capital enters into economic hedges including interest rate swaps, to-be-announced forward contract positions (“TBAs”) and treasury short sales to hedge a portion of its interest rate risk exposure. Interest rate risk is sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations, as well as other factors. Rithm Capital’s credit risk with respect to economic hedges is the risk of default on Rithm Capital’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. Rithm Capital may at times hold TBAs or short treasury positions in order to mitigate Rithm Capital’s interest rate risk on certain specified MBSs and MSRs. Amounts or obligations owed by or to Rithm Capital are subject to the right of set-off with the counterparty. As part of executing these trades, Rithm Capital may enter into agreements with its counterparties that govern the transactions for the purchases or sales made, including margin maintenance, payment and transfer, events of default, settlements and various other provisions. Changes in the value of economic hedges designed to protect against MBSs and MSR fair value fluctuations, or hedging gains and losses, are reflected in the tables below. Rithm Capital enters into short sales of U.S. Treasury securities to mitigate interest rate risk by borrowing the securities under reverse repurchase agreements and selling them into the market. The Company accounts for these as securities borrowing transactions and recognizes an obligation to return the borrowed securities at fair value, presented as Treasury securities payable on the Consolidated Balance Sheets, based on the value of the underlying U.S. Treasury security as of the reporting date. Refer to Note 3 for further details. Gains and losses associated with U.S. Treasury securities are recognized in Realized and unrealized gains (losses), net in the Consolidated Statements of Operations. As of March 31, 2024, 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 and economic hedges are recorded at fair value and presented in Other assets or Accrued expenses and Other liabilities on the Consolidated Balance Sheets, as follows: March 31, 2024 December 31, 2023 Derivative and hedging assets Interest rate swaps (A) $ — $ 106 IRLCs 32,063 26,482 TBAs 7,492 1,492 $ 39,555 $ 28,080 Derivative and hedging liabilities IRLCs 835 2,678 TBAs 15,654 49,087 Other commitments (B) 17,097 — $ 33,586 $ 51,765 (A) Net of $0.5 million and $342.0 million of related variation margin accounts as of March 31, 2024 and December 31, 2023, respectively. (B) During the quarter, a subsidiary of the Company entered into an agreement with an affiliate, which could result in the subsidiary being required to make a payment under certain circumstances dependent upon amounts realized from an investment of the affiliate, subject to a maximum amount of $25.5 million. The agreement is classified as a derivative liability and measured at fair value. The following table summarizes notional amounts related to derivatives and hedging: March 31, 2024 December 31, 2023 Interest rate swaps (A) $ 700,000 $ 7,979,988 IRLCs 3,734,933 2,757,060 TBAs, short position (B) 7,918,900 6,013,100 Other commitments 23,021 — (A) Includes $700.0 million notional of receive Secured Overnight Financing Rate (“SOFR”)/pay fixed of 4.6% and $0.0 million notional of receive fixed of 0.0%/pay SOFR with weighted average maturities of 32 months and 0 months, respectively, as of March 31, 2024. Includes $8.0 billion notional of receive SOFR/pay fixed of 2.5% and $0.0 billion notional of receive fixed of 0.0%/pay SOFR with weighted average maturities of 32 months and 0 months, respectively, as of December 31, 2023. (B) Represents the notional amount of Agency RMBS, classified as derivatives. The following table summarizes gain (loss) on derivatives and hedging and the related location on the Consolidated Statements of Operations: Three Months Ended 2024 2023 Gain on originated residential mortgage loans, HFS, net (A) IRLCs $ 7,485 $ 26,240 TBAs 37,910 (57,983) Interest rate swaps — (1,247) $ 45,395 $ (32,990) Realized and unrealized gains (losses), net (B) Interest rate swaps 29,161 (143,625) TBAs 1,523 (7,381) Treasury securities payable (C) 28,345 — Other commitments (17,097) — $ 41,932 $ (151,006) Total gain (loss) $ 87,327 $ (183,996) (A) Represents unrealized gain (loss). (B) Excludes $15.5 million loss and $9.9 million gain for the three months ended March 31, 2024 and 2023, respectively, included within Gain on originated residential mortgage loans, HFS, net (Note 9). (C) Refer to the table below for detail regarding Treasury securities payable: As of and for the Three Months Ended March 31, 2024 Face Sale proceeds Fair value Unrealized gain (loss) position Realized & unrealized gain (loss) (A) Reverse repurchase agreements (B) Net asset (liability) (C) Treasury short sale liabilities (D) $ 1,485,000 1,484,652 $ 1,487,320 $ (2,668) $ 23,997 $ 1,492,268 $ 4,948 Covered treasury short sale liabilities (E) 1,500,000 N/A 1,505,157 N/A 4,348 1,548,488 43,331 Total Treasury securities payable $ 2,985,000 $ 2,992,477 $ 28,345 $ 3,040,756 $ 48,279 (A) Includes net interest income (expense) on treasuries payable and associated reverse repurchase agreements. (B) Reverse repurchase agreements are lending facilities used to borrow securities to effectuate short sales of U.S. Treasury securities. (C) Represents the net carrying value of the position, excluding accrued interest receivable (payable). (D) Treasury short sale liabilities are moved to Covered treasury short sale liabilities after realized gain (loss) is recognized at purchase to cover. (E) Face and fair value of liability is equal to face and fair value of treasuries presented as part of Real estate and other securities on the Consolidated Balance Sheets. |
DEBT OBLIGATIONS (AS RESTATED)
DEBT OBLIGATIONS (AS RESTATED) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS (AS RESTATED) | DEBT OBLIGATIONS (AS RESTATED) The following table summarizes Secured Financing Agreements, Secured Notes and Bonds Payable and also includes debt obligations of consolidated CFEs: March 31, 2024 (As Restated) December 31, 2023 (As Restated) Collateral Debt Obligations /Collateral (C) Outstanding Face Amount Carrying Value (A) Final Stated Maturity (B) Weighted Average Funding Cost Weighted Average Life (Years) Outstanding Face Amortized Cost Basis Carrying Value Weighted Average Life (Years) Carrying Value (A) Secured Financing Agreements Warehouse Credit Facilities-Residential Mortgage Loans (D) $ 3,087,260 $ 3,087,196 Apr-24 to Feb-26 6.9 % 0.7 $ 3,514,478 $ 3,522,074 $ 3,438,132 28.8 $ 1,940,038 Warehouse Credit Facilities-Mortgage Loans Receivable (E) 1,457,135 1,457,135 May-24 to Dec-25 8.1 % 1.5 1,749,029 1,761,010 1,761,010 1.2 1,337,010 Agency RMBS or US Treasuries (F) 12,557,569 12,557,569 Apr-24 to May-25 5.4 % 0.4 12,962,940 12,773,350 12,817,767 6.8 8,152,469 Non-Agency RMBS (E) 645,381 645,381 Apr-24 to Oct-28 7.4 % 0.6 15,812,493 974,002 1,002,578 7.0 610,189 SFR Properties (E) 27,914 27,914 Dec-24 8.2 % 0.7 N/A 60,054 60,054 N/A 20,534 CLOs (G) 179,858 178,527 Jan-30 to Jul-35 6.3 % 8.7 180,890 180,890 178,475 8.7 183,947 Commercial Notes Receivable 323,452 317,324 Dec-24 6.5 % 0.7 429,240 364,977 364,977 N/A 317,096 Total Secured Financing Agreements $ 18,278,569 $ 18,271,046 6.0 % 0.6 $ 12,561,283 Secured Notes and Bonds Payable Excess MSRs (E) 169,603 169,603 Oct-25 8.8 % 1.4 58,577,476 226,825 261,420 5.8 181,522 MSRs (H) 4,458,873 4,452,608 Dec-24 to Nov-27 7.4 % 1.7 521,148,213 6,480,406 8,657,165 7.6 4,800,728 Servicer Advance Investments (I) 270,705 270,705 Jul-24 to Mar-26 7.3 % 1.9 313,271 352,275 374,511 8.4 278,042 Servicer Advances (I) 2,154,019 2,153,983 May-24 to Mar-26 7.2 % 1.8 2,648,186 2,586,079 2,586,079 0.7 2,254,369 Residential Mortgage Loans (J) 650,000 650,000 May-24 6.8 % 0.1 648,077 665,862 669,238 6.7 650,000 Consumer Loans (K) 971,627 943,821 Jun-28 to Sep 37 6.8 % 4.1 1,154,642 1,123,851 1,103,799 1.8 1,106,974 SFR Properties (L) 832,972 791,612 Mar-26 to Sep-27 4.1 % 3.1 N/A 946,603 946,603 N/A 789,174 Mortgage Loans Receivable (M) 200,000 200,000 Jul-26 5.8 % 2.3 224,165 224,165 225,790 0.6 200,000 Secured Facility- Asset Management 75,000 69,652 Nov-25 8.8 % 1.6 N/A N/A N/A N/A 69,121 CLOs (G) 19,364 19,331 May-30 to Oct-34 6.8 % 7.3 23,013 19,541 22,099 7.3 30,258 Total Secured Notes and Bonds Payable $ 9,802,163 $ 9,721,315 6.9 % 2.0 $ 10,360,188 Notes Payable of Consolidated CFEs (N) : Consolidated funds (O) $ 222,250 $ 218,123 May-37 5.0 % 4.6 206,141 N/A 204,248 N/A 218,157 Residential Mortgage Loans $ 3,015,722 2,800,532 Mar-64 4.2 % 26.8 3,453,537 N/A 3,257,446 26.8 2,618,082 Mortgage Loans Receivable $ 324,062 324,062 Dec-26 5.6 % 2.7 342,780 342,780 341,831 0.6 318,998 Total Notes Payable of Consolidated CFEs $ 3,562,034 $ 3,342,717 4.4 % 23.2 $ 3,155,237 Total / Weighted Average $ 31,642,766 $ 31,335,078 6.1 % 3.6 $ 26,076,708 (A) Net of deferred financing costs. (B) Debt obligations with a stated maturity through the date of issuance were refinanced, extended or repaid. (C) Associated with accrued interest payable of approximately $134.3 million as of March 31, 2024. (D) Includes $224.7 million with an average fixed-rate of 5.0% with the remaining based on SOFR interest rates. (E) SOFR-based floating interest rates. Includes repurchase agreements and related collateral on non-agency securities retained through consolidated securitizations (F) Repurchase agreements have a fixed-rate. Includes financing on and collateral for US Treasuries purchased to cover short sales. Collateral carrying value includes margin deposits. (G) Repurchase agreements and loans based on SOFR- or Euro Interbank Offered Rate (EURIBOR) floating interest rate. (H) Includes $3.5 billion of MSR notes with an interest equal to the sum of (i) a floating rate index equal to SOFR, and (ii) a margin ranging from 2.5% to 3.7%; and $1.0 billion of MSR notes with fixed interest rates ranging 3.0% to 5.4%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the MSRs and MSR financing receivables securing these notes. (I) Includes debt with an interest rate equal to the sum of (i) a floating rate index equal to SOFR, and (ii) a margin ranging from 1.5% to 3.7%. Collateral includes servicer advance investments, as well as servicer advances receivable related to the MSRs and MSR financing receivables owned by NRM and Newrez. (J) Represents $650.0 million securitization backed by a revolving warehouse facility to finance newly originated first-lien, fixed- and adjustable-rate residential mortgage loans with an interest rate equal to SOFR plus a margin of 1.2%. Collateral carrying value includes cash held in the securitization trust required to meet collateral requirements. (K) Includes (i) SpringCastle debt, which is primarily composed of the following classes of asset-backed notes held by third parties: $191.7 million UPB of Class A notes with a coupon of 2.0% and $53.0 million UPB of Class B notes with a coupon of 2.7% and (ii) $721.9 billion of debt collateralized by the Marcus loans with an interest rate of SOFR plus a margin of 3.0%. (L) Includes $833.0 million of fixed-rate notes with an interest rate ranging from 3.5% to 7.1%. (M) Includes $238.1 million with an interest rate at an average fixed-rate of 4.6% with the remaining having SOFR-based floating interest rates. (N) See Note 21 for balance sheets of consolidated entities. (O) Includes $120.0 million UPB of Class A notes with a fixed coupon of 4.3% , $70.0 million UPB of Class B notes with a fixed coupon of 6.0% , $15.0 million UPB of Class C notes with a fixed coupon of 6.8% , and $17.3 million UPB of Subordinated notes, held within consolidated funds (Note 21 ). Weighted average life is based on expected maturity. 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. The assets of consolidated CFEs can only be used to settle obligations and liabilities of the CFEs for which creditors do not have recourse to Rithm Capital Corp. As of March 31, 2024, Rithm Capital has margin exposure on $18.3 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: Servicer Advances and Excess MSRs (A) MSRs Commercial Notes Receivable Real Estate and Other Securities Residential Mortgage Loans and REO Consumer Loans SFR Properties Mortgage Loans Receivable Asset Management Total Balance at December 31, 2023 (As Restated) $ 2,713,933 $ 4,800,728 $ 317,096 $ 8,762,658 $ 5,208,120 $ 1,106,974 $ 809,708 $ 1,856,008 $ 501,483 $ 26,076,708 Secured Financing Agreements Borrowings — — — 22,495,882 11,289,428 — 7,380 750,500 — 34,543,190 Repayments — — — (18,055,590) (10,142,463) — — (630,375) (1,579) (28,830,007) FX remeasurement — — — — — — — — (3,877) (3,877) Capitalized deferred financing costs, net of amortization — — 228 — 193 — — — 36 457 Secured Notes and Bonds Payable Borrowings 558,186 200,000 — — — — — — 3,080 761,266 Repayments (678,740) (548,902) — — — (163,039) (420) — (14,096) (1,405,197) FX remeasurement — — — — — — — — (48) (48) Unrealized (gain) loss on notes, fair value — — — — — (411) — — — (411) Capitalized deferred financing costs, net of amortization 912 782 — — — 297 2,858 — 668 5,517 Notes Payable of Consolidated CFEs Acquired borrowing, net of discount — — — — — — — — — — Borrowings — — — — 241,333 — — — — 241,333 Repayments — — — — (75,214) — — — — (75,214) Discount on borrowings, net of amortization — — — — 1,251 — — — — 1,251 Unrealized (gain) loss on notes, fair value — — — — 15,080 — — 5,064 (34) 20,110 Balance at March 31, 2024 (As Restated) $ 2,594,291 $ 4,452,608 $ 317,324 $ 13,202,950 $ 6,537,728 $ 943,821 $ 819,526 $ 1,981,197 $ 485,633 $ 31,335,078 (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 March 31, 2024 are as follows, as restated: Year Ending Nonrecourse (A) Recourse (B) Total April 1 through December 31, 2024 $ 1,720,835 $ 17,491,706 $ 19,212,541 2025 258,952 2,845,222 3,104,174 2026 2,355,033 1,407,583 3,762,616 2027 734,614 420,000 1,154,614 2028 846,839 — 846,839 2029 and thereafter 3,561,982 1,050,000 4,611,982 $ 9,478,255 $ 23,214,511 $ 32,692,766 (A) Includes secured financing agreements, secured notes and bonds payable, unsecured notes net of issuance costs and notes payable of consolidated CFEs of $1.0 billion, $5.0 billion, $0.2 billion and $3.3 billion, respectively. (B) Includes secured financing agreements, secured notes and bonds payable, unsecured notes net of issuance costs and notes payable of consolidated CFEs of $17.3 billion, $5.3 billion, $0.6 billion and $0.0 billion, respectively. Borrowing Capacity The following table represents borrowing capacity as of March 31, 2024: Debt Obligations / Collateral Borrowing Capacity Balance Outstanding Available Financing (A) Secured Financing Agreements Residential mortgage loans, mortgage loans receivable, SFR and commercial notes receivable $ 6,367,565 $ 2,430,849 $ 3,936,716 Loan originations 5,227,000 2,464,912 2,762,088 CLOs 315,790 179,858 135,932 Secured Notes and Bonds Payable Excess MSRs 286,380 169,603 116,778 MSRs 5,938,911 4,458,873 1,480,038 Servicer advances 3,805,000 2,424,724 1,380,276 SFR 296,639 194,997 101,642 Liabilities of Consolidated CFEs Consolidated funds 52,500 — 52,500 $ 22,289,785 $ 12,323,816 $ 9,965,970 (A) Although available financing is uncommitted, Rithm Capital’s unused borrowing capacity is available if it has additional eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements, including any applicable advance rate. Certain of the debt obligations are subject to customary loan covenants and event of default provisions, including event of default provisions triggered by certain specified declines in Rithm Capital’s equity or a failure to maintain a specified tangible net worth, liquidity or indebtedness to tangible net worth ratio. Rithm Capital was in compliance with all of its debt covenants as of March 31, 2024. 2029 Senior Unsecured Notes On March 19, 2024, the Company, issued in a private offering $775.0 million aggregate principal amount of senior unsecured notes due on April 1, 2029 (the “2029 Senior Notes”) at an issue price of 98.981%. Interest on the 2029 Senior Notes accrues at the rate of 8.000% per annum with interest payable semi-annually in arrears on each April 1 and October 1, commencing on October 1, 2024. The notes become redeemable at any time and from time to time, on or after April 1, 2026, at a price equal to the following fixed redemption prices (expressed as a percentage of principal amount of the 2029 Senior Notes to be redeemed): Year Price 2026 104.000 % 2027 102.000 % 2028 and thereafter 100.000 % Prior to April 1, 2026, the Company is entitled at its option on one or more occasions to redeem the 2029 Senior Notes in an aggregate principal amount not to exceed 40% of the aggregate principal amount of the 2029 Senior Notes originally issued prior to the applicable redemption date at a redemption price of 108.000%, plus accrued but unpaid interest, if any, to, but not including, the applicable redemption date with the net cash proceeds from one or more Qualified Equity Offerings (as defined in the Indenture, dated March 19, 2024, pursuant to which the 2029 Senior Notes were issued (the “2029 Notes Indenture”). Proceeds from the offering were approximately $759 million, net of discount and commissions and estimated offering expenses payable by the Company. The Company incurred fees of approximately $9.1 million in relation to the issuance of the 2029 Senior Notes. These fees were capitalized as debt issuance cost and presented as part of Unsecured notes, net of issuance costs on the Consolidated Balance Sheets. For the three months ended March 31, 2024 , the Company recognized interest expense of $2.1 million . At March 31, 2024 , the unamortized discount and debt issuance cost was approximately $16.9 million . The 2029 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 2029 Senior Notes were not guaranteed by any of the Company’s subsidiaries and none of its subsidiaries are required to guarantee the 2029 Senior Notes in the future, except under limited specified circumstances. The 2029 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 2029 Notes Indenture) of not less than 120% of the aggregate principal amount of the outstanding unsecured debt of the Company or its subsidiaries, and imposes certain requirements in order for the Company to merge or consolidate with or transfer all or substantially all of its properties and 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 March 31, 2024, the Company was in compliance with all covenants. In the event of a Change of Control or Mortgage Business Triggering Event (each as defined in the 2029 Notes Indenture), each holder of the 2029 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 2029 Senior Notes, plus accrued and unpaid interest, if any, to, but not including, the date of such repurchase. 2025 Senior Unsecured Notes On September 16, 2020, the Company issued in a private offering $550.0 million of aggregate principal amount of senior unsecured notes due on October 15, 2025 (the “2025 Senior Notes”) for net proceeds of $544.5 million. Interest on the 2025 Senior Notes accrues at the rate of 6.250% per annum with interest payable semi-annually in arrears on each April 15 and October 15, commencing on April 15, 2021. The notes became redeemable at any time and from time to time, on or after October 15, 2022. The Company may redeem the notes at a fixed redemption price of 101.563% from October 15, 2023 to October 16, 2024 and at a fixed redemption price of 100.000% after October 14, 2024, in each case, plus accrued and unpaid interest, if any, to, but not including the applicable redemption date. The Company incurred fees of approximately $8.3 million in relation to the issuance of the 2025 Senior Notes which were capitalized as debt issuance cost and are presented as part of Unsecured notes, net of issuance costs on the Consolidated Balance Sheets. For the three months ended March 31, 2024 , the Company recognized interest expense of $8.0 million . At March 31, 2024 , the unamortized debt issuance costs was approximately $2.7 million . The 2025 Senior Notes are senior unsecured obligations and rank pari passu in right of payment with all of the Company’s existing and future senior unsecured indebtedness and senior unsecured guarantees. At the time of issuance, the 2025 Senior Notes were not guaranteed by any of the Company’s subsidiaries and none of its subsidiaries are required to guarantee the 2025 Senior Notes in the future, except under limited specified circumstances. The 2025 Senior Notes contain financial covenants and other non-financial covenants, including, among other things, limits on the ability of the Company and its restricted subsidiaries to incur certain indebtedness (subject to various exceptions), requires that the Company maintain Total Unencumbered Assets, as defined in the Indenture, dated September 16, 2020, pursuant to which the 2025 Senior Notes were issued (the “2025 Notes Indenture”) of not less than 120% of the aggregate principal amount of the outstanding unsecured debt of the Company and its subsidiaries, 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 March 31, 2024, the Company was in compliance with all covenants. In the event of a Change of Control (as defined in the 2025 Notes Indenture), 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. In connection with the offering of the 2029 Senior Notes, the Company tendered for and repurchased $275.0 million aggregate principal amount of its 2025 Senior Notes for cash in a total amount of $282.4 million, inclusive of an early tender premium of $30 per $1,000 principal amount of 2025 Senior Notes and accrued and unpaid interest. Following such tender offer, $275.0 million aggregate principal amount of 2025 Senior Notes remains outstanding. Tax Receivable Agreement At the time of its initial public offering in 2007, Sculptor entered into a tax receivable agreement (“TRA”) with the former holders of units in Sculptor’s operating partnerships (the “TRA Holders”). The TRA provides for the payment by Sculptor to the TRA Holders of a portion of the cash savings in US federal, state and local income tax that Sculptor realizes as a result of certain tax benefits attributable to taxable acquisitions by Sculptor (and certain affiliates and successors) of Sculptor operating partnership units. The TRA includes certain “change of control” assumptions that became applicable as a result of the acquisition of Sculptor, including the assumption that Sculptor (or its successor) has sufficient taxable income to use the relevant tax benefits. As a result, payments under the TRA will be calculated without regard to Sculptor’s ability to actually use tax assets (including net operating losses), the use of which may be significantly limited and may therefore exceed the actual tax savings to Sculptor of the associated tax assets. As of March 31, 2024, the estimated undiscounted future payment under the TRA was $267.9 million. The carrying value of the TRA liability measured at amortized cost was $174.8 million as of March 31, 2024 with interest expense recognized under the effective interest method. The TRA liability is recorded in Unsecured notes, net of issuance costs on the Consolidated Balance Sheets. The table below presents the Company’s estimate as of March 31, 2024, of the maximum undiscounted amounts that would be payable under the TRA using the assumptions described above. In light of the numerous factors affecting Sculptor’s obligation to make such payments, the timing and amounts of any such actual payments may differ materially from those presented in the table. Year Ending Potential Payments Under TRA April 1 through December 31, 2024 $ 11,591 2025 29,819 2026 17,374 2027 18,994 2028 15,940 2029 and thereafter 174,203 $ 267,921 For a discussion of the restatement, refer to Note 3. |
FAIR VALUE MEASUREMENTS (AS RES
FAIR VALUE MEASUREMENTS (AS RESTATED) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS (AS RESTATED) | FAIR VALUE MEASUREMENTS (AS RESTATED) Fair value represents the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date (i.e., an exit price). The Company holds a variety of assets, certain of which are not publicly traded or that are otherwise illiquid. Significant judgment and estimation go into the assumptions that drive the fair value of these assets. Due to the inherent uncertainty of valuations of investments that are determined to be illiquid or do not have readily ascertainable fair values, the estimates of fair value may differ from the values ultimately realized, and those differences can be material. US GAAP establishes a hierarchical disclosure framework that prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is impacted by a number of factors, including the type and the specific characteristics of the assets and liabilities, including existence and transparency of transactions between market participants. Assets and liabilities with readily available actively quoted prices or for which fair value can be measured from actively-quoted prices generally will have a higher degree of market price observability and lesser degree of judgment used in measuring fair value. Assets and liabilities measured at fair value are classified and disclosed into one of the following categories based on the observability of inputs used in the determination of fair values: 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 (“CDR”), and • Market corroborated inputs (derived principally from or corroborated by observable market data). Level 3 – Valuations based significantly on unobservable inputs. Rithm Capital follows this hierarchy for its fair value measurements. The classifications are based on the lowest level of input that is significant to the fair value measurement. The carrying values and fair values of assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of March 31, 2024 were as follows, as restated: Principal Balance or Notional Amount Carrying Value Fair Value Level 1 Level 2 Level 3 Net Asset Value (“NAV”) Total Assets Excess MSRs (A) $ 58,577,476 $ 255,111 $ — $ — $ 255,111 $ — $ 255,111 MSRs and MSR financing receivables (A) 526,673,826 8,706,723 — — 8,706,723 — 8,706,723 Servicer advance investments 313,271 374,511 — — 374,511 — 374,511 Real estate and other securities (B) 24,017,832 14,857,286 4,497,542 9,566,210 793,535 — 14,857,287 Residential mortgage loans, HFS 89,460 74,415 — — 74,415 — 74,415 Residential mortgage loans, HFS, at fair value 3,701,355 3,691,700 — 3,353,549 338,151 — 3,691,700 Residential mortgage loans, HFI, at fair value 434,474 365,398 — — 365,398 — 365,398 Residential mortgage loans subject to repurchase 1,845,889 1,845,889 — 1,845,889 — — 1,845,889 Consumer loans 1,154,642 1,103,799 — — 1,103,799 — 1,103,799 Derivative and hedging assets 7,493,928 102,227 62,672 7,492 32,063 — 102,227 Mortgage loans receivable 2,028,938 2,042,913 — — 2,042,913 — 2,042,913 Notes receivable 503,397 364,977 — — 364,977 — 364,977 Loans receivable 27,997 27,997 — — 27,997 — 27,997 Cash, cash equivalents and restricted cash 1,530,983 1,530,983 1,530,983 — — — 1,530,983 Reverse repurchase agreements 3,040,756 3,040,756 — 3,040,756 — — 3,040,756 Assets of consolidated CFEs - funds (E) 324,631 350,043 11,705 — — 338,337 350,042 Assets of consolidated CFEs - loan securitizations (E) 3,795,368 3,632,016 32,739 3,257,446 341,831 — 3,632,016 Other assets N/A 62,810 — — 62,810 — 62,810 $ 42,429,554 $ 6,135,641 $ 21,071,342 $ 14,884,234 $ 338,337 $ 42,429,554 Liabilities Secured financing agreements $ 18,278,569 $ 18,271,046 $ — $ 18,090,307 $ 180,739 $ — $ 18,271,046 Secured notes and bonds payable (C) 9,802,163 9,721,315 — — 10,060,762 — 10,060,762 Unsecured notes, net of issuance costs 1,298,492 1,205,411 — — 1,202,005 — 1,202,005 Residential mortgage loan repurchase liability 1,845,889 1,845,889 — 1,845,889 — — 1,845,889 Payable for investments purchased (D) 1,271,542 1,271,542 1,271,542 — — — 1,271,542 Treasury securities payable 2,985,000 2,992,477 2,992,477 — — — 2,992,477 Derivative liabilities 4,882,926 33,586 — 15,654 17,932 — 33,586 Liabilities of consolidated CFEs - funds (E) 222,250 223,188 5,065 — 218,123 — 223,188 Liabilities of consolidated CFEs - loan securitizations (E) 3,339,784 3,141,121 16,527 2,800,532 324,062 — 3,141,121 $ 38,705,575 $ 4,285,611 $ 22,752,382 $ 12,003,623 $ — $ 39,041,616 (A) The notional amount represents the total UPB 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 US Treasury Bills classified as Level 1 and held at amortized cost basis of $24.9 million (see Note 8). Carrying value equals fair value for all other securities. (C) Includes SCFT 2020-A (as defined below) MBS issued for which the fair value option for financial instruments was elected and resulted in a fair value of $221.9 million as of March 31, 2024. (D) Represents the cost of Agency and Non-Agency securities purchased and not settled as of the reporting date. The purchases settled prior to issuance. (E) Represents assets and notes issued by consolidated VIEs accounted for under the CFE election. The following table summarizes the changes in the Company’s Level 3 inputs financial assets for the period presented: Level 3 Excess MSRs (A)( B ) MSRs and MSR Financing Receivables (A) Servicer Advance Investments Non-Agency Securities Derivatives (C) Residential Mortgage Loans Consumer Loans Notes and Loans Receivable Mortgage Loans Receivable (D) Total Balance at December 31, 2023 (As Restated) $ 271,150 $ 8,405,938 $ 376,881 $ 804,029 $ 23,804 $ 513,381 $ 1,274,005 $ 429,550 $ 2,232,913 $ 14,331,651 Transfers Transfers from Level 3 — — — — — — — — — — Transfers to Level 3 — — — — — 106 — — — 106 Gain (loss) included in net income Credit losses on securities (E) — — — (662) — — — — — (662) Servicing revenue, net (F) Included in servicing revenue (F) — 84,175 — — — — — — — 84,175 Change in fair value of Excess MSRs (E) (1,867) — — — — — — — — (1,867) Excess MSRs, equity method investees (E) — — — — — — — — — — Servicer advance investments — — 8,115 — — — — — — 8,115 Consumer loans — — — — — — (30,117) — — (30,117) Residential mortgage loans — — — — — 5,596 — — — 5,596 Gain (loss) on settlement of investments, net — — — 36 — — — — — 36 Other income (loss), net (E) — — — 2,860 (9,612) 1,824 — — 14,873 9,945 Gains (losses) included in OCI (G) — — — 737 — — — — — 737 Interest income 2,446 — 7,315 8,496 — — 10,152 1,094 — 29,503 Purchases, sales and repayments Purchases, net (H) — — 212,656 17,579 — 216,405 4,113 — — 450,753 Proceeds from sales — 671 — — (17,766) — — — (17,095) Proceeds from repayments (16,618) $ — (230,456) (39,540) — (16,042) (154,354) (37,670) (505,091) (999,771) Originations and other — 215,939 — — (61) 45 — — 642,049 857,972 Balance at March 31, 2024 (As Restated) $ 255,111 $ 8,706,723 $ 374,511 $ 793,535 $ 14,131 $ 703,549 $ 1,103,799 $ 392,974 $ 2,384,744 $ 14,729,077 (A) Includes the recapture agreement for each respective pool, as applicable. (B) Amounts include Rithm Capital’s portion of the Excess MSRs held by the respective joint ventures in which Rithm Capital has a 50% interest. (C) For the purpose of this table, the IRLC asset and liability positions and other commitment derivatives are shown net. (D) Includes mortgage loans receivable of consolidated CFEs classified as level 3 in the fair hierarchy. (E) Gain (loss) recorded in earnings during the period is attributable to the change in unrealized gain (loss) relating to Level 3 assets still held at the reporting dates and realized gain (loss) recorded during the period. (F) See Note 6 for further details on the components of servicing revenue, net. (G) Gain (loss) included in unrealized gain (loss) on available-for-sale securities, net in the Consolidated Statements of Comprehensive Income. (H) Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection. The following table summarizes the changes in the Company’s Level 3 financial liabilities for the period presented, as restated: Level 3 Asset-Backed Securities Issued Notes Payable of Consolidated Funds Mortgage Loans Receivable Notes Payable of CFE Total Balance at December 31, 2023 $ 235,770 $ 218,157 $ 318,998 $ 772,925 Gains (losses) included in net income Other income (A) (411) (34) 5,064 4,619 Purchases, sales and repayments Proceeds from sales — — — — Payments (13,437) — — (13,437) Balance at March 31, 2024 $ 221,922 $ 218,123 $ 324,062 $ 764,107 (A) Gain (loss) recorded in earnings during the period is attributable to the change in unrealized gain (loss) relating to Level 3 financial liabilities still held at the reporting dates and realized gain (loss) recorded during the period. See Note 21 in the Company’s Amended 2023 Form 10-K/A for a listing of criteria used to determine the significant inputs for each asset class. 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 MSRs 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 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 table summarizes certain information regarding the ranges and weighted averages of inputs used as of March 31, 2024: Significant Inputs (A) Prepayment (B) Delinquency (C) Recapture (D) Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) (E) Collateral Weighted Average Maturity (Years) (F) Excess MSRs Directly Held 2.5% – 12.0% (6.6%) 0.2% – 15.0% (6.2%) 0.0% – 91.3% (55.4%) 7 – 32 (20) 11 – 26 (20) Excess MSRs Held through Investees 7.4% – 10.1% (8.6%) 1.8% – 5.0% (3.2%) 45.4% – 64.1% (59.2%) 16 – 25 (21) 14 – 21 (18) MSRs and MSR Financing Receivables Agency 0.6% – 83.7% (6.4%) 0.1% – 100.0% (1.7%) — (G) 12 – 136 (27) 0 – 40 (22) Non-Agency 0.8% – 83.5% (7.7%) 0.8% – 80.0% (26.6%) — (G) 1 – 277 (46) 0 – 40 (20) Ginnie Mae 4.5% – 81.9% (9.1%) 0.1% – 71.4% (8.1%) — (G) 19 – 119 (44) 0 – 39 (27) Total/Weighted Average — MSRs and MSR Financing Receivables 0.6% – 83.7% (7.3%) 0.1% – 100.0% (5.5%) — (G) 1 – 277 (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 is expected to miss a mortgage payment. (D) Percentage of voluntarily prepaid loans that are expected to be refinanced by the related servicer or subservicer, as applicable. (E) Weighted average total mortgage servicing amount, in excess of the basic fee as applicable, measured in basis points (“bps”). As of March 31, 2024, weighted average costs of subservicing of $6.91 – $7.09 ($6.95) per loan per month was used to value the agency MSRs. Weighted average costs of subservicing of $7.54 – $9.55 ($9.17) per loan per month was used to value the non-agency MSRs, including MSR financing receivables. Weighted average cost of subservicing of $8.37 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) Recapture is not considered a significant input for MSRs and MSR financing receivables. With respect to valuing the PHH-serviced MSRs and MSR financing receivables, which include a significant servicer advances receivable component, the cost of financing servicer advances receivable is assumed to be SOFR plus 4.1%. As of March 31, 2024, a weighted average discount rate of 8.8% (range of 8.5% – 9.0%) was used to value Rithm Capital’s Excess MSRs (directly and through equity method investees). As of March 31, 2024, a weighted average discount rate of 8.5% (range of 7.9% – 10.8%) was used to value Rithm Capital’s MSRs and MSR financing receivables. The following table summarizes the estimated change in fair value of Rithm Capital’s interests in the Agency MSRs, owned as of March 31, 2024, given several parallel shifts in the discount rate, prepayment rate and delinquency rate: Fair value at March 31, 2024 $ 5,477,522 Discount rate shift in % -20% -10% 10% 20% Estimated fair value $ 5,916,038 $ 5,688,536 $ 5,281,385 $ 5,098,703 Change in estimated fair value: Amount $ 438,516 $ 211,014 $ (196,137) $ (378,819) Percentage 8.0 % 3.9 % (3.6) % (6.9) % Prepayment rate shift in % -20% -10% 10% 20% Estimated fair value $ 5,712,739 $ 5,589,924 $ 5,374,997 $ 5,279,423 Change in estimated fair value: Amount $ 235,217 $ 112,402 $ (102,525) $ (198,099) Percentage 4.3 % 2.1 % (1.9) % (3.6) % Delinquency rate shift in % -20% -10% 10% 20% Estimated fair value $ 5,564,061 $ 5,524,189 $ 5,424,447 $ 5,365,476 Change in estimated fair value: Amount $ 86,539 $ 46,667 $ (53,075) $ (112,046) Percentage 1.6 % 0.9 % (1.0) % (2.0) % The following table summarizes the estimated change in fair value of Rithm Capital’s interests in the Non-Agency MSRs, including MSR financing receivables, owned as of March 31, 2024, given several parallel shifts in the discount rate, prepayment rate and delinquency rate: Fair value at March 31, 2024 $ 666,958 Discount rate shift in % -20% -10% 10% 20% Estimated fair value $ 736,242 $ 700,014 $ 636,705 $ 608,936 Change in estimated fair value: Amount $ 69,284 $ 33,056 $ (30,253) $ (58,022) Percentage 10.4 % 5.0 % (4.5) % (8.7) % Prepayment rate shift in % -20% -10% 10% 20% Estimated fair value $ 705,048 $ 685,527 $ 649,291 $ 632,451 Change in estimated fair value: Amount $ 38,090 $ 18,569 $ (17,667) $ (34,507) Percentage 5.7 % 2.8 % (2.6) % (5.2) % Delinquency rate shift in % -20% -10% 10% 20% Estimated fair value $ 702,058 $ 685,264 $ 647,274 $ 626,531 Change in estimated fair value: Amount $ 35,100 $ 18,306 $ (19,684) $ (40,427) Percentage 5.3 % 2.7 % (3.0) % (6.1) % The following table summarizes the estimated change in fair value of Rithm Capital’s interests in the Ginnie Mae MSRs, owned as of March 31, 2024, given several parallel shifts in the discount rate, prepayment rate and delinquency rate: Fair value at March 31, 2024 $ 2,562,243 Discount rate shift in % -20% -10% 10% 20% Estimated fair value $ 2,767,898 $ 2,661,043 $ 2,470,671 $ 2,385,605 Change in estimated fair value: Amount $ 205,655 $ 98,800 $ (91,572) $ (176,638) Percentage 8.0 % 3.9 % (3.6) % (6.9) % Prepayment rate shift in % -20% -10% 10% 20% Estimated fair value $ 2,710,793 $ 2,632,485 $ 2,498,505 $ 2,439,407 Change in estimated fair value: Amount $ 148,550 $ 70,242 $ (63,738) $ (122,836) Percentage 5.8 % 2.7 % (2.5) % (4.8) % Delinquency rate shift in % -20% -10% 10% 20% Estimated fair value $ 2,739,713 $ 2,654,908 $ 2,463,189 $ 2,359,206 Change in estimated fair value: Amount $ 177,470 $ 92,665 $ (99,054) $ (203,037) Percentage 6.9 % 3.6 % (3.9) % (7.9) % Each of the preceding sensitivity analyses is hypothetical and is provided for illustrative purposes only. There are certain limitations inherent in the sensitivity analyses presented. In particular, the results are calculated by stressing a particular economic assumption independent of changes in any other assumption; in practice, changes in one factor may result in changes in another, which might counteract or amplify the sensitivities. Also, changes in the fair value based on a 10% variation in an assumption generally may not be extrapolated because the relationship of the change in the assumption to the change in fair value may not be linear. Servicer Advance Investments Valuation 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 Servicer Advances to UPB of Underlying Residential Mortgage Loans Prepayment Rate (A) Delinquency Mortgage Servicing Amount (B) Discount Rate Collateral Weighted Average Maturity (Years) (C) Servicer advance investments 1.2% – 2.4% (2.4%) 3.9% – 4.9% (4.8%) 6.6% – 20.0% (19.7%) 18.2 – 19.9 (19.8) bps 6.2% – 6.7% (6.2%) 20.9 – 21.6 (21.6) (A) Projected annual weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (B) Mortgage servicing amount is net of 2.2 bps which represents the amount Rithm Capital paid its servicers as a monthly servicing fee. (C) Weighted average maturity of the underlying residential mortgage loans in the pool. Real Estate and Other Securities Valuation Rithm Capital’s real estate and other securities valuation methodology and results are detailed below. Treasury securities are valued using market-based prices published by the US Department of the Treasury and are classified as Level 1. The table below is as of March 31, 2024, as restated. Fair Value Asset Type Outstanding Face Amount Amortized Cost Basis Multiple Quotes (A) Single Quote (B) Total Level Agency $ 9,751,506 $ 9,549,450 $ 9,566,210 $ — $ 9,566,210 2 Non-Agency 9,741,326 765,827 581,539 211,996 793,535 3 Total $ 19,492,832 $ 10,315,277 $ 10,147,749 $ 211,996 $ 10,359,745 (A) Rithm Capital generally obtains pricing service quotations or broker quotations from two sources. Rithm Capital evaluates quotes received, determines one as being most representative of fair value and does not use an average of the quotes. Even if Rithm Capital receives two or more quotes on a particular security that come from non-selling brokers or pricing services, it does not use an average because it believes using an actual quote more closely represents a transactable price for the security than an average level. Furthermore, in some cases, for Non-Agency securities, 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 most accurately reflect fair value. Rithm Capital has not adjusted any of the quotes received in the periods presented. These quotations are generally received via email and contain disclaimers which state that they are “indicative” and not “actionable” — meaning that the party giving the quotation is not bound to purchase the security at the quoted price. Rithm Capital’s investments in Agency RMBS are classified within Level 2 of the fair value hierarchy because the market for these securities is 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 securities. 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 independent valuation group, which is separate from its investment acquisition and management group, to reflect market developments and actual performance. For 60.3% of Non-Agency securities, 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 securities were not readily available. Fair Value Discount Rate Prepayment Rate (a) CDR (b) Loss Severity (c) Non-Agency (As Restated) $ 478,826 0.0% – 12.6% (6.6%) 0.0% – 20.0% (11.7%) 0.0% – 2.0% (1.0%) 0.0% – 49.0% (18.7%) (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 of the loans in default. (B) Rithm Capital was unable to obtain quotations from more than one source on these securities. Residential Mortgage Loans Valuation Rithm Capital, through Newrez, originates residential mortgage loans that it intends to sell into Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securitizations. Residential mortgage loans HFS, at fair value are typically pooled together and sold into certain exit markets, depending upon underlying attributes of the loan, such as agency eligibility, product type, interest rate and credit quality. Newrez also originates non-qualified residential mortgage (“Non-QM”) loans that do not meet the qualified mortgage rules per the Consumer Financial Protection Bureau that it intends to sell to private investors. Residential mortgage loans HFS, at fair value are valued using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. As these prices are derived from market observable inputs, Rithm Capital classifies these valuations as Level 2 in the fair value hierarchy. Originated residential mortgage loans HFS for which there is little to no observable trading activity of similar instruments are valued using Level 3 measurements based upon (i) internal pricing models to forecast loan level cash flows using inputs such as default rates, prepayments speeds and discount rates or (ii) consensus pricing (broker quotes) or historical sale transactions for similar loans. Residential mortgage loans HFS, at fair value also include nonconforming seasoned mortgage loans acquired and identified for securitization, which are valued using internal pricing models to forecast loan level cash flows based on a potential securitization exit using inputs such as default rates, prepayments speeds and discount rates, and may include adjustments based on consensus pricing (broker quotes). Residential mortgage loans HFI, at fair value include nonconforming seasoned mortgage loans acquired and not identified for sale or securitization, which are valued using internal pricing models to forecast loan level cash flows using inputs such as default rates, prepayments speeds and discount rates, and may include adjustments based on consensus pricing (broker quotes). As the internal pricing models are based on certain unobservable inputs, Rithm Capital classifies these valuations as Level 3 in the fair value hierarchy. For non-performing loans, asset liquidation cash flows are derived based on the estimated time to liquidate the loan, the estimated value of the collateral, expected costs and estimated home price levels. Estimated cash flows for both performing and non-performing loans are discounted at yields considered appropriate to arrive at a reasonable exit price for the asset. Rithm Capital classifies these valuations as Level 3 in the fair value hierarchy. The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing residential mortgage loans HFS, at fair value classified as Level 3 as of March 31, 2024: Performing Loans Fair Value Discount Rate Prepayment Rate CDR Loss Severity Acquired loans $ 215,160 5.9% – 9.7% (6.4%) 2.3% – 9.1% (7.3%) 1.3% – 6.6% (2.7%) 6.9% – 55.4% (11.7%) Originated loans (A) 32,617 4.4% 8.9% 3.6% 20.7% Residential mortgage loans HFS, at fair value $ 247,777 Non-Performing Loans Fair Value Discount Rate Annual change in home prices CDR Current Value of Underlying Properties Acquired loans $ 62,848 4.8% – 10.0% (6.3%) 2.0%– 7.6% (3.8%) 1.3% – 4.3% (3.3%) 223.1% – 863.9% (243.7%) Originated loans (A) 5,786 4.4% N/A 3.6% N/A Residential mortgage loans HFS, at fair value $ 68,634 (A) Includes inputs for 66.9% and 50.8% of originated performing and non-performing loans, respectively, classified as Level 3. The remainder of performing and non-performing loans were priced using dealer price quotes and historical sale transactions for similar loans with a range of 50.9% - 100.0% (85.8%). The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing residential mortgage loans HFI, at fair value classified as Level 3 as of March 31, 2024: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Residential mortgage loans HFI, at fair value $ 365,398 7.9% – 9.8% (8.1%) 3.0% – 3.9% (3.6%) 1.3% – 6.6% (5.1%) 23.2% – 55.4% (43.4%) Consumer Loans Valuation The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing consumer loans HFI, at fair value classified as Level 3 as of March 31, 2024: Fair Value Discount Rate Prepayment Rate CDR Loss Severity SpringCastle $ 267,948 8.4% – 9.4% (8.6%) 9.4% – 35.7% (15.5%) 1.7% – 7.3% (5.0%) 85.7% – 100.0% (93.6%) Marcus 835,851 7.8% 19.8% 11.3% 86.0% Consumer loans, HFI, at fair value $ 1,103,799 Mortgage Loans Receivable Valuation Rithm Capital classifies mortgage loans receivable as Level 3 in the fair value hierarchy. Performing originated mortgage loans are valued using (i) a market-based approach by utilizing the fair value of securities backed by similar loans adjusted for certain factors to approximate the fair value of a whole loan or (ii) current commitments to acquire the loans. Non-performing loan liquidation cash flows are derived based on the estimated value of the collateral, estimated recoveries and costs, and estimated time to liquidate the asset. Acquired mortgage loans receivable are valued using internal pricing models to forecast cash flows with inputs such as default rates, prepayments speeds and discount rates, and may include adjustments based on consensus pricing (broker quotes). The following table summarizes certain information regarding the weighted averages of inputs used in valuing mortgage loans receivable, at fair value classified as Level 3 as of March 31, 2024: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Acquired mortgage loans receivable $ 73,934 10.7% —% 1.8% – 2.5% (2.1%) 25.0% Originated mortgage loans receivable 1,968,979 9.6% N/A N/A N/A Mortgage loans receivable, at fair value $ 2,042,913 Derivatives and Hedging Valuation Rithm Capital enters into economic hedges including interest rate swaps, caps and TBAs, which are categorized as Level 2 in the valuation hierarchy. Rithm Capital generally values such derivatives using quotations, similarly to the method of valuation used for Rithm Capital’s other assets that are classified as Level 2 in the fair value hierarchy. Treasury short sales are valued using market-based prices published by the US Department of the Treasury and classified as Level 1. Other commitment relates to an agreement entered into by a subsidiary of Rithm Capital with its affiliate requiring a payment under certain circumstances dependent upon amounts realized from an investment of the affiliate. It is valued at the excess of cost basis over the intrinsic value of the underlying investment and classified as Level 3 in the fair value hierarchy. In addition, Rithm Capital enters into IRLCs, which are valued using internal pricing models (i) incorporating market pricing for instruments with similar characteristics, (ii) estimating the fair value of the servicing rights expected to be recorded at sale of the loan and (iii) adjusting for anticipated loan funding probability. Both the fair value of servicing rights expected to be recorded at the date of sale of the loan and anticipated loan funding probability are significant unobservable inputs and therefore, IRLCs are classified as Level 3 in the fair value hierarchy. The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing IRLCs as of March 31, 2024: Fair Value Loan Funding Probability Fair Value of Initial Servicing Rights (Bps) IRLCs, net $ 31,228 0.4% – 100.0% (83.6%) 4.4 – 345.0 (239.7) Asset-Backed Securities Issued As of March 31, 2024, Rithm Capital was the primary beneficiary of the SCFT 2020-A (as defined below) securitization, and therefore, Rithm Capital’s Consolidated Balance Sheets include the asset-backed securities issued by the trust. Rithm Capital elected the fair value option for the securities and valued them consistently with Non-Agency securities described above. The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing asset-backed securities issued as of March 31, 2024: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Asset-backed securities issued $ 221,922 5.8% 15.5% 5.0% 93.6% Notes Receivable and Loans Receivable From time to time, Rithm Capital purchases notes and loans receivable that are generally collateralized by commercial real estate assets. Rithm Capital generally uses internal discounted cash flow pricing models to estimate the fair value of notes and loans receivable. Solely for March 31, 2024, the fair value of notes receivable was determined utilizing a market approach based on an observable trade in the specific security. Due to the fact that the fair value of Rithm Capital’s notes and loans receivable are based significantly on unobservable inputs, these are classified as Level 3 in the fair value hierarchy. Future cash flows are generally estimated using contractual economic terms, as well as significant unobservable inputs, such as the underlying collateral performance. Other significant unobservable inputs include discount rates which estimate the market participants’ required rates of return. The following table summarizes certain information regarding the carrying value and significa |
VARIABLE INTEREST ENTITIES (AS
VARIABLE INTEREST ENTITIES (AS RESTATED) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES (AS RESTATED) | VARIABLE INTEREST ENTITIES (AS RESTATED) In the normal course of business, Rithm Capital enters into transactions with special purpose entities (“SPEs”), which primarily consist of trusts established for a limited purpose. The SPEs have been formed for the purpose of transactions in which the Company transfers assets into an SPE in return for various forms of debt obligations supported by those assets. In these transactions, the Company typically receives cash and/or other interests in the SPE as proceeds for the transferred assets. The Company retains the right to service the transferred receivables. The Company first evaluates whether it holds a variable interest in the entity. Where the Company has a variable interest, it is required to determine whether the entity is a VIE or a Voting Interest Entity (“VOE”), the classification of which will determine the consolidation model that the Company is required to follow when determining whether it should consolidate the entity. VIEs are defined as entities in which (i) equity at risk investors do not have the characteristics of a controlling financial interest, (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties, or (iii) substantially all of the activities of the entity are performed on behalf of the party with disproportionately few voting rights. Where an entity does not have the characteristics of a VIE, it is a VOE. A VIE is required to be consolidated by the primary beneficiary, which is defined as the party that has the power to direct the activities of a VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that could be potentially significant to the VIE. To assess whether Rithm Capital has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, Rithm Capital considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes identifying (i) the activities that most significantly impact the VIE’s economic performance and (ii) which party, if any, has power over those activities. To assess whether Rithm Capital has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, Rithm Capital considers all of its economic interests and applies judgment in determining whether these interests, individually or in the aggregate, are considered potentially significant to the VIE. When an SPE meets the definition of a VIE and the Company determines that it is the primary beneficiary, the Company consolidates the SPE in its consolidated financial statements. For certain consolidated VIEs that meet the definition of a CFE, which is a variable interest entity that holds financial assets, issues beneficial interests in those assets and has no more than nominal equity, Rithm Capital has elected to account for the assets and liabilities of these entities under the CFE measurement alternative. The CFE measurement alternative 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. The assets of the consolidated CFEs can only be used to settle obligations and liabilities of these consolidated CFEs and are not available for general use by the Company. The liabilities of these consolidated CFEs are liabilities only of these entities and creditors have no recourse to the Company for the consolidated CFEs’ liabilities. Consolidated VIEs Advance Purchaser Rithm Capital, through a taxable wholly-owned subsidiary, is the managing member of Advance Purchaser and owned approximately 89.3% of Advance Purchaser as of March 31, 2024. Rithm Capital is deemed to be the primary beneficiary of Advance Purchaser as a result of its ability to direct activities that most significantly impact the economic performance of the entities and its ownership of a significant equity investment. See Note 7 for details. Newrez Joint Ventures A wholly-owned subsidiary of Newrez, Newrez Ventures LLC (formerly known as Shelter Mortgage Company LLC) (“Newrez Ventures”), is a mortgage originator specializing in retail originations. Newrez Ventures operates its business through a series of joint ventures (“Newrez Joint Ventures”) and is deemed to be the primary beneficiary of such Newrez Joint Ventures as a result of its ability to direct activities that most significantly impact the economic performance of the Newrez Joint Venture entities and its ownership of a significant equity investment. Residential Mortgage Loans The Company securitizes, sells and services residential mortgage loans. Securitization transactions typically involve the use of VIEs and are accounted for either as sales or as secured financings. Certain of these activities may involve SPEs which, by their nature, are deemed to be VIEs. Rithm Capital sells pools of conforming mortgage loans through GSE and Ginnie Mae sponsored programs with the servicing retained by Newrez. The Company has several financing vehicles in the form of mortgage loan participation and sale agreements with financial institutions, or Purchasers, to sell pools of agency residential mortgage loans. Newrez Mortgage Participant LLC, NPF Trust EBO I and Newrez Trust II were formed to acquire, receive, participate, hold, release and dispose of participation interests in certain of Newrez’s residential mortgage loans HFS (“MLHFS PC”). These facilities transfer the MLHFS PC in exchange for cash. Newrez 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, HFS and the related warehouse credit facility liabilities as part of Secured Financing Agreements. Newrez retains the risks and benefits associated with the assets transferred to the SPEs. Mortgage-Backed Securitization In May 2021, Newrez issued $750.0 million in notes through a securitization facility (the “2021-1 Securitization Facility”) that bear interest at 30-day SOFR plus a margin. The 2021-1 Securitization Facility is secured by newly originated, first-lien, fixed- and adjustable-rate residential mortgage loans eligible for purchase by the GSEs and Ginnie Mae. Through a master repurchase agreement, Newrez sells its originated residential mortgage loans to the 2021-1 Securitization Facility, which then issues notes to third party qualified investors, with Newrez retaining the trust certificate. The loans serve as collateral with the proceeds from the note issuance ultimately financing the originations. The 2021-1 Securitization Facility will terminate on the earlier of (i) the three-year anniversary of the initial closing date, (ii) the Company exercising its right to optional prepayment in full or (iii) a repurchase triggering event. The Company 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. Consumer Loan Companies Rithm Capital has a co-investment in a portfolio of consumer loans held through certain limited liability entities (the “Consumer Loan Companies”), which hold the SpringCastle loans. As of March 31, 2024, 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. Consolidated CFEs: Loan Securitizations - Mortgage Loans Receivable Rithm Capital sponsors securitization trusts, classified as VIEs, that issue securitized debt collateralized by mortgage loans receivable and for which a wholly-owned subsidiary of Rithm Capital serves as asset manager. Rithm Capital acquired all of the most subordinated trust certificates. Rithm Capital concluded that the most subordinate tranche trust certificates absorb a majority of the trusts expected losses or receive a majority of the trusts’ expected residual returns. Rithm Capital also concluded that the securitization’s asset manager has the ability to direct activities that could impact the trusts’ economic performance. As a result, Rithm Capital consolidates such trusts. The assets of these consolidated loan securitizations trusts may only be used to settle obligations of these entities and are not available to creditors of the Company. The investors in these consolidated loan securitizations have no recourse against the assets of the Company, and there is no recourse to the Company for the consolidated entities’ liabilities. Refer to Note 3 for further details. As of March 31, 2024, the trusts’ assets consist 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 $341.8 million and an aggregate principal limit of approximately $487.2 million. Refer to Note 20 regarding the fair value measurements of consolidated loan securitizations. Loan Securitizations - Residential Mortgage Loans Rithm Capital sponsors certain mortgage securitization trusts, considered VIEs, to securitize performing Non-QM loans and seasoned mortgage loans. The Company consolidates certain trusts for which it is the primary beneficiary. The Company acts as the primary servicer for such trusts and therefore has the ability to direct activities that could impact these trusts’ economic performance. Generally, the Company retains a vertical tranche of notes issued by these trusts for risk retention purposes in addition to the most subordinated tranches and “interest only” interests. Such retained interests are eliminated in consolidation. Depending on the type of the securitization, the underlying pool of assets may consist of performing, amortizing and interest only, fixed rate and adjustable rate mortgage loans secured by first liens on single family residential properties, planned unit developments and condominiums. The assets of these consolidated loan securitizations may only be used to settle obligations of these entities and are not available to creditors of the Company. The investors in these consolidated loan securitizations have no recourse against the assets of the Company, and there is no recourse to the Company for the consolidated entities’ liabilities. Refer to Note 3 for further details. As of March 31, 2024, the Notes payable at fair value of Liabilities of consolidated CFEs due to third parties had a fair value of $2.8 billion. Rithm’s retained interest in the consolidated CFEs was $0.5 billion. Refer to Note 20 regarding the fair value measurements of consolidated loan securitizations and to Note 3 for further information. Funds In the ordinary course of business, Sculptor sponsors the formation of consolidated funds that are considered VIEs. The Company consolidates certain VIEs for which it is the primary beneficiary either directly or indirectly through a consolidated entity. The assets of these consolidated funds may only be used to settle obligations of these entities and are not available to creditors of the Company or Sculptor. The investors in these consolidated funds have no recourse against the assets of the Company or Sculptor. There is no recourse to the Company or Sculptor for the consolidated funds’ liabilities. The Company, through Sculptor, consolidates a structured alternative investment solution, which issued notes in the aggregate principal amount of $350.0 million, of which approximately $127.8 million were retained by Sculptor and eliminated in consolidation. The retained notes consists of $20.0 million Class A notes, $20.0 million of Class C notes and $87.8 million of subordinated notes. As of March 31, 2024, the consolidated notes payable due to third parties had a fair value of $218.1 million. Sculptor’s structured alternative investment solution entered into a $52.5 million credit facility maturing March 18, 2025. This credit facility is capped at $20.0 million of total borrowing capacity per quarter, bearing interest of SOFR plus margin of 3.0%. The facility is also subject to an annual 1.15% unused commitment fee. As of March 31, 2024, the consolidated funds have not drawn on the facility. See Notes 19 and 20 regarding the financing and fair value measurements of consolidated funds, respectively. The table below presents the restated carrying value and classification of the assets and liabilities of consolidated VIEs on the Consolidated Balance Sheets: Advance Purchaser Newrez Joint Ventures Residential Mortgage Loans Consumer Loan Companies Consolidated CFEs (B) Total Loan Securitizations - Mortgage Loans Receivable Loan Securitizations - Residential Mortgage Loans Consolidated Funds March 31, 2024 (As Restated) Assets Servicer advance investments, at fair value $ 364,843 $ — $ — — $ — $ — $ — $ 364,843 Residential mortgage loans, HFS, at fair value — — 1,177,451 — — — — 1,177,451 Consumer loans — — — 267,948 — — — 267,948 Assets of consolidated CFEs - investments — — — — 341,831 3,257,446 338,337 3,937,614 Cash and cash equivalents 5,532 18,000 — — — — — 23,532 Restricted cash 7,885 — 9,381 6,232 11,607 16,155 10,856 62,116 Other assets 9 631 — 4,051 4,888 89 850 10,518 Total Assets $ 378,269 $ 18,631 $ 1,186,832 $ 278,231 $ 358,326 $ 3,273,690 $ 350,043 5,844,022 Liabilities Secured financing agreements (A) — — 1,052,769 — — — — 1,052,769 Secured notes and bonds payable (A) 265,776 — — 221,922 — — — 487,698 Notes payable of consolidated CFEs (A) — — — — 324,062 2,800,532 218,123 3,342,717 Accrued expenses and other liabilities 2,505 2,366 6,128 1,587 371 16,156 5,065 34,178 Total Liabilities $ 268,281 $ 2,366 $ 1,058,897 $ 223,509 $ 324,433 $ 2,816,688 $ 223,188 $ 4,917,362 December 31, 2023 (As Restated) Assets Servicer advance investments, at fair value $ 367,803 $ — $ — $ — $ — $ — $ — $ 367,803 Residential mortgage loans, HFS, at fair value — — 1,112,097 — — — — 1,112,097 Consumer loans — — — 285,632 — — — 285,632 Assets of consolidated CFEs - investments — — — — 353,594 3,038,587 321,856 3,714,037 Cash and cash equivalents 5,381 18,159 — — — — — 23,540 Restricted cash 8,273 — 6,113 6,301 7,572 6,263 18,013 52,535 Other assets 9 688 — 4,325 4,532 — 1,060 10,614 Total Assets $ 381,466 $ 18,847 $ 1,118,210 $ 296,258 $ 365,698 $ 3,044,850 $ 340,929 $ 5,566,258 Liabilities Secured financing agreements (A) — — 996,845 — — — — 996,845 Secured notes and bonds payable (A) 274,404 — — 235,770 — — — 510,174 Notes payable of consolidated CFEs (A) — — — — 318,998 2,618,082 218,157 3,155,237 Accrued expenses and other liabilities 2,606 2,240 5,382 1,507 372 6,262 1,763 20,132 Total Liabilities $ 277,010 $ 2,240 $ 1,002,227 $ 237,277 $ 319,370 $ 2,624,344 $ 219,920 $ 4,682,388 (A) The creditors of the VIEs do not have recourse to the general credit of Rithm Capital Corp., and the assets of the VIEs are not directly available to satisfy Rithm Capital Corp’s obligations. (B) Reflects Assets of consolidated CFEs - Investments, at fair value and other assets and Liabilities of consolidated CFEs - Notes payable, at fair value and other liabilities on the Consolidated Balance Sheets. Non-Consolidated VIEs The Company retains interest in certain VIEs pursuant to required risk retention regulations. The Company does not consolidate such VIEs as it is not considered the primary beneficiary. The following table summarizes the restated carrying value of the real estate bonds issued by unconsolidated VIEs and retained by the Company, which reflects the Company’s maximum exposure to loss, as well as the UPB of transferred loans. These bonds are presented as part of Real estate and other securities on the Consolidated Balance Sheets: March 31, 2024 December 31, 2023 (As Restated) Residential mortgage loan UPB and other collateral $ 8,012,829 $ 8,237,692 Weighted average delinquency (A) 5.4% 5.3% Net credit losses $ 162,602 $ 162,061 Face amount of debt held by third parties $ 7,361,326 $ 7,596,408 Carrying value of bonds retained by Rithm Capital (B)(C) $ 554,438 $ 543,447 Year to date cash flows received by Rithm Capital on these bonds $ 21,320 $ 91,401 (A) Represents the percentage of the UPB that is 60+ days delinquent. (B) Includes real estate bonds retained pursuant to required risk retention regulations. (C) 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. The following table summarizes the Company’s involvement with VIEs related to the asset management business that are not consolidated. The Company’s involvement, through Sculptor, is generally limited to providing asset management services and, in certain cases, investments in the VIEs. The maximum exposure to loss represents the potential loss of current investments or income and fees receivables from these entities, as well as the obligation to repay unearned revenues, primarily incentive income subject to clawback, in the event of any future fund losses, as well as unfunded commitments to certain funds that are VIEs. The Company does not provide, nor is it required to provide, any type of non-contractual financial or other support to its VIEs that are not consolidated beyond its share of capital and other commitments described in Note 18. March 31, 2024 December 31, 2023 Net assets of unconsolidated VIEs in which the Company has a variable interest $ 12,613,891 $ 12,782,124 Maximum risk of loss as a result of the Company’s involvement with unconsolidated VIEs: Unearned income and fees 38,993 37,468 Income and fees receivable 37,873 43,250 Investments 527,231 533,026 Unfunded commitments (A) 182,846 207,575 Other commitments 23,021 — Maximum Exposure to Loss $ 809,964 $ 821,319 (A) Includes commitments from certain employees and executive managing directors in the amounts of $94.8 million and $97.5 million as of March 31, 2024 and December 31, 2023, respectively. The following table summarizes the carrying value of the Company’s unconsolidated commercial real estate projects which reflects the Company’s maximum exposure to loss. See Note 23 regarding certain guarantees provided in connection with the investments. These investments are presented as part of Equity investments within other assets on the Consolidated Balance Sheets: March 31, 2024 December 31, 2023 Carrying value of commercial real estate held within unconsolidated VIEs $ 96,186 $ 66,652 Carrying value of Rithm Capital’s investments in unconsolidated commercial real estate VIEs $ 34,846 $ 29,210 Noncontrolling Interests Noncontrolling interests represent the ownership interests in certain consolidated subsidiaries held by entities or persons other than Rithm Capital and it is presented as a separate component of Equity on the Company’s Consolidated Balance Sheets. These interests are related to noncontrolling interests in consolidated entities that hold servicer advance investments (Note 7), the Newrez Joint Ventures (Note 9), consumer loans (Note 10) and Sculptor investments. Others’ interests in the equity of consolidated subsidiaries is computed as follows: March 31, 2024 December 31, 2023 Total Consolidated Equity Others' Ownership Interest Others' Interest in Equity of Consolidated Subsidiary Total Consolidated Equity Others' Ownership Interest Others' Interest in Equity of Consolidated Subsidiary Advance Purchaser $ 109,988 10.7 % $ 11,747 $ 104,458 10.7 % $ 11,157 Newrez Joint Ventures $ 16,265 49.5 % $ 8,051 $ 16,607 49.5 % $ 8,220 Consumer Loan Companies $ 68,126 46.5 % $ 31,679 $ 72,361 46.5 % $ 33,748 Others’ interests in the net income (loss) is computed as follows: Three Months Ended March 31, 2024 2023 Net income (loss) Others’ ownership interest as a percent of total Others’ interest in net income (loss) of consolidated subsidiaries Net income (loss) Others’ ownership interest as a percent of total Others’ interest in net income (loss) of consolidated subsidiaries Advance Purchaser $ 9,530 10.7 % $ 1,018 $ (1,370) 10.7 % $ (146) Newrez Joint Ventures $ 112 49.5 % $ 55 $ (85) 49.5 % $ (42) Consumer Loan Companies $ 2,192 46.5 % $ 1,019 $ (2,391) 46.5 % $ (1,112) Noncontrolling interests related to Sculptor represents the ownership interests in certain funds held by entities or persons other than the Company. These interests substantially relate to interests held by Sculptor employees in real estate funds managed by the Company adjusted for their capital activity and allocated earnings in such funds. Such employees’ portion of carried interest is expensed and recorded within compensation and benefits on the Consolidated Statements of Operations and therefore excluded in the calculation of noncontrolling interests. As of March 31, 2024, others’ interest in the net equity of consolidated subsidiaries related to Sculptor was $42.3 million. For a discussion of the restatement, refer to Note 3. |
EQUITY AND EARNINGS PER SHARE
EQUITY AND EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
EQUITY AND EARNINGS PER SHARE | EQUITY AND EARNINGS PER SHARE Equity and Dividends Rithm Capital’s certificate of incorporation authorizes 2.0 billion shares of common stock, par value $0.01 per share, and 100.0 million shares of preferred stock, par value $0.01 per share. On August 5, 2022, Rithm Capital entered into a Distribution Agreement to sell shares of its common stock, par value $0.01 per share, having an aggregate offering price of up to $500.0 million, from time to time, through an “at-the-market” equity offering program (the “ATM Program”). No share issuances were made during the three months ended March 31, 2024 under the ATM Program. In February 2024, Rithm Capital’s board of directors renewed the Company’s stock repurchase program, authorizing the repurchase of up to $200.0 million of its common stock and $100.0 million of its preferred stock for the period from January 1, 2024 through December 31, 2024. The objective of the stock repurchase program is to seek flexibility to return capital when deemed accretive to stockholders. Repurchases can 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 three months ended March 31, 2024, the Company did not repurchase any shares of its common stock or its preferred stock. Purchases and sales of Rithm Capital’s securities by the Company’s officers and directors are subject to the Rithm Capital Corp. Insider Trading Compliance Policy. The table below summarizes preferred shares: Dividends Declared per Share Number of Shares Three Months Ended Series March 31, 2024 December 31, 2023 Liquidation Preference (A) Issuance Discount Carrying Value (B) 2024 2023 Series A, 7.50% issued July 2019 (C) 6,200 6,200 $ 155,002 3.15 % $ 149,822 $ 0.47 $ 0.47 Series B, 7.125% issued August 2019 (C) 11,261 11,261 281,518 3.15 % 272,654 0.45 0.45 Series C, 6.375% issued February 2020 (C) 15,903 15,903 397,584 3.15 % 385,289 0.40 0.40 Series D, 7.00% issued September 2021 (D) 18,600 18,600 465,000 3.15 % 449,489 0.44 0.44 Total 51,964 51,964 $ 1,299,104 $ 1,257,254 $ 1.76 $ 1.76 (A) Each series has a liquidation preference or par value of $25.00 per share. (B) Carrying value reflects par value less discount and issuance costs. (C) Fixed-to-floating rate cumulative redeemable preferred. (D) Fixed-rate reset cumulative redeemable preferred. On March 20, 2024, Rithm Capital’s board of directors declared first quarter 2024 preferred dividends of $0.47 per share of Series A, $0.45 per share of Series B, $0.40 per share of Series C and $0.44 per share of the 7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock (the “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: Declaration Date Payment Date Per Share Total Amounts Distributed (millions) Quarterly Dividend December 15, 2022 January 2023 0.25 118.6 March 17, 2023 April 2023 0.25 120.8 June 23, 2023 July 2023 0.25 120.8 September 14, 2023 October 2023 0.25 120.8 December 12, 2023 January 2024 0.25 120.8 March 20, 2024 April 2024 0.25 120.9 Options Prior to the Internalization, the Company issued options (i) to the Former Manager and (ii) as initial one-time grants relating to 1,000 shares of the Company’s Common Stock as compensation to each new director. These options were issued pursuant to Rithm Capital’s Amended and Restated Nonqualified Stock Option and Incentive Award Plan, which became effective on May 15, 2013, was amended and restated as of November 4, 2014 and as of February 16, 2023 and expired by its terms on April 29, 2023 (the “2013 Plan”). 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. Any stock-based awards, including options, issued under the 2013 Plan continue to be subject to the terms and provisions of the 2013 Plan applicable to such awards. The following table summarizes outstanding options as of March 31, 2024. The last sales price on the New York Stock Exchange for Rithm Capital’s common stock in the quarter ended March 31, 2024 was $11.16 per share. Recipient Date of Grant/ Exercise (A) Number of Unexercised Options Exercisable as of March 31, 2024 Weighted Average Exercise Price (B) Intrinsic Value of Exercisable Options as of March 31, 2024 (millions) Independent Directors Various 2,000 2,000 $ 10.70 $ — Former Manager 2017 1,130,916 1,130,916 12.84 — Former Manager 2018 5,320,000 5,320,000 15.57 — Former Manager 2019 6,351,000 6,351,000 14.95 — Former Manager 2020 1,619,739 1,619,739 16.30 — Former Manager 2021 7,050,335 7,049,146 9.38 12.57 Outstanding 21,473,990 21,472,801 (A) Options expire on the tenth anniversary from date of grant. (B) The exercise prices are subject to adjustment in connection with return of capital dividends. The following table summarizes activity in outstanding options: Number of Options December 31, 2023 21,473,990 Granted — Exercised — Expired — March 31, 2024 21,473,990 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 for the period. Diluted EPS is calculated using the treasury stock method 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 effect of dilutive securities is presented net of tax. The following table summarizes the basic and diluted EPS calculations: Three Months Ended 2024 2023 Net income (loss) $ 287,487 $ 89,949 Noncontrolling interests in income of consolidated subsidiaries 3,452 (1,300) Dividends on preferred stock 22,395 22,395 Net income (loss) attributable to common stockholders $ 261,640 $ 68,854 Basic weighted average shares of common stock outstanding 483,336,777 478,167,178 Effect of dilutive securities: (A)(B) Stock options 897,800 — Common stock purchase warrants — 4,470,133 Restricted stock 274,754 209,600 Time-based restricted stock unit awards 816,310 — Performance-based restricted stock unit awards 605,860 — Diluted weighted average shares of common stock outstanding 485,931,501 482,846,911 Basic earnings (loss) per share attributable to common stockholders $ 0.54 $ 0.14 Diluted earnings (loss) per share attributable to common stockholders $ 0.54 $ 0.14 (A) Certain stock options and common stock purchase warrants that could potentially dilute basic EPS in the future were not included in the computation of diluted EPS for the periods where they were out-of-the-money or a loss has been recorded, because they would have been anti-dilutive for the period presented. There were no anti-dilutive common stock purchase warrants for all periods presented. (B) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (AS RESTATED) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES (AS RESTATED) | COMMITMENTS AND CONTINGENCIES (AS RESTATED) Litigation — Rithm Capital is or may become, from time to time, involved in various disputes, litigation and regulatory inquiry and investigation matters that arise in the ordinary course of business. Given the inherent unpredictability of these types of proceedings, it is possible that future adverse outcomes could have a material adverse effect on its business, financial position or results of operations. Rithm Capital is not aware of any unasserted claims that it believes are material and probable of assertion where the risk of loss is expected to be reasonably possible. Rithm Capital is, from time to time, subject to inquiries by government entities. Rithm Capital currently does not believe any of these inquiries would result in a material adverse effect on Rithm Capital’s business. In 2023, in connection with the acquisition of Sculptor, litigation was filed against Sculptor alleging, among other things, that Sculptor’s board of directors (the “Sculptor Board”) and the special committee of the Sculptor Board violated their fiduciary duties, and sought, among other things, to enjoin the transaction with Rithm Capital. An agreement was reached in principle by the parties to settle all claims of the litigation. The parties executed and filed the Stipulation and Agreement of Settlement, Compromise and Release in connection with the settlement, pending a final hearing for the settlement. 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 March 31, 2024, Rithm Capital had outstanding capital commitments related to investments in the following investment types (also refer to Note 6 for MSR investment commitments and to Note 27 for additional capital commitments entered into subsequent to March 31, 2024, 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. Refer to Notes 6 and 7 for discussion on Rithm Capital’s MSRs and servicer advance investments, respectively. • Mortgage Origination Reserves — Newrez 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 Newrez 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 Newrez 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, Newrez generally has an obligation to cure the breach. If Newrez is unable to cure the breach, the purchaser may require Newrez to repurchase the loan. In addition, as issuers of Ginnie Mae guaranteed securitizations, Newrez 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 Newrez is not obligated to repurchase the delinquent loans, Newrez generally exercises its respective option to repurchase loans that will result in an economic benefit. As of March 31, 2024, Rithm Capital’s estimated liability associated with representations and warranties and Ginnie Mae repurchases was $52.6 million and $1.8 billion, respectively. See Note 6 for information regarding the right to repurchase delinquent loans from Ginnie Mae securities and mortgage origination. • Residential Mortgage Loans — As part of its investment in residential mortgage loans, Rithm Capital may be required to outlay capital. These capital outflows primarily consist of advance escrow and tax payments, residential maintenance and property disposition fees. The actual amount of these outflows is subject to significant uncertainty. See Note 9 for information regarding Rithm Capital’s residential mortgage loans. • Consumer Loans — The Consumer Loan Companies have invested in loans with an aggregate of $168.4 million of unfunded and available revolving credit privileges as of March 31, 2024. However, under the terms of these loans, requests for draws may be denied and unfunded availability may be terminated at Rithm Capital’s discretion. • SFR Properties — On June 21, 2023, Crowne Property Acquisitions, LLC, a wholly-owned subsidiary of Rithm Capital, executed a purchase and sales agreement with Lennar Homes of Texas Land and Construction, LTD., a subsidiary of Lennar Corporation, to purchase 371 SFR properties, which shall be delivered in phased takedowns, at an estimated aggregate purchase price of $95.6 million, which is payable subject to the phased takedown schedule. The purchased homes are currently under construction, and all of the homes are expected to be delivered by the end of the fourth quarter of 2024. As of March 31, 2024, 200 SFR properties have been delivered to Rithm Capital pursuant to this arrangement. On February 27, 2024, Viewpoint Murfreesboro Land LLC, a wholly-owned subsidiary of Rithm Capital (“Viewpoint”), executed a purchase and sale agreement (the “PSA”) with an affiliate of BTR Group, LLC (“BTR”), BTR VM LLC, to purchase land for a purchase price of $7.0 million. In connection with the PSA, on February 27, 2024, Viewpoint entered into a fixed price design-build construction contract with BTR (the “Construction Contract”) to purchase 171 SFR properties that are scheduled to be built by BTR on the purchased land in accordance with the plans and specifications approved in accordance with entry into the Construction Contract, for an aggregate purchase price of $49.0 million. The aggregate purchase price is payable in installments in accordance with the draw schedule set forth in the Construction Contract, and delivery of the homes is expected to begin in the second quarter of 2025. • Mortgage Loans Receivable (As Restated) — Genesis and Rithm Capital had commitments to fund up to $829.3 million and $2.0 million, respectively, of additional advances on existing mortgage loans as of March 31, 2024. 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 or Rithm Capital funds the commitments. • Equity Investments — As part of its investment commitment in certain commercial real estate projects, Rithm Capital is required to fund its pro rata share of future capital contributions subject to certain limitations. • Fund Commitments — The Company has unfunded capital commitments of $232.9 million to certain funds Sculptor manages, of which $68.4 million relates to commitments of Sculptor’s consolidated structured alternative investment solution, and $50.0 million relates to commitments to a consolidated Sculptor Loan Financing Partners fund, a collateralized loan obligation (“CLO”) equity investment platform. The remaining $114.5 million relates to commitments of Sculptor to unconsolidated funds. Approximately $94.8 million of Sculptor’s commitments will be funded by contributions to Sculptor from certain current and former employees and executive managing directors. Sculptor expects to fund these commitments over approximately the next 6 years. Sculptor has guaranteed these commitments in the event any executive managing director fails to fund any portion when called by the fund. Sculptor has historically not funded any of these commitments and does not expect to in the future, as these commitments are expected to be funded by Sculptor’s executive managing directors individually. • Corporate — As part of the partnership with Great Ajax (Note 1), the Company entered into a one-year delayed draw term loan agreement with Great Ajax for up to $70 million, which remains unfunded as of March 31, 2024. In connection with the execution of the term loan agreement, Great Ajax will issue five Non-Recourse Carve-Out, Construction Completion, Environmental and Carry Guarantees – In connection with investments in two commercial real estate projects, Rithm Capital provided certain limited guarantees to the senior lender on the projects related to non-recourse carve outs, completion, environmental, and carry costs of the projects. The actual amount that could be called under the guarantees is subject to significant uncertainty. Environmental Costs — As an investor in and owner of commercial and residential real estate, Rithm Capital is subject to potential environmental costs. At March 31, 2024, 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 for a further discussion of the Company’s debt obligations. |
RELATED PARTY TRANSACTIONS (AS
RELATED PARTY TRANSACTIONS (AS RESTATED) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS (AS RESTATED) | RELATED PARTY TRANSACTIONS (AS RESTATED) A party is considered to be related to the Company if the party, directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners, management and directors, as well as members of their immediate families or any other parties with which Rithm Capital may deal if one party to a transaction controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. Loan Agreement In July 2023, an entity in which Rithm Capital has an ownership interest entered into an agreement to acquire a commercial real estate development project. Rithm Capital’s ownership interest in such entity is accounted for under the equity method and is presented within Other assets on the Consolidated Balance Sheets. Concurrently, Genesis entered into a loan agreement in the amount of $86.4 million with a remaining term of approximately 27 months unless otherwise extended with the entity. This loan is included in Mortgage Loans Receivable, at fair value on Rithm Capital’s Consolidated Balance Sheets. SFR Property Management Agreement In January 2024, Rithm Capital entered into a management agreement with Adoor Property Management LLC, an entity in which the Company has an ownership interest, to manage certain of the Company’s SFR properties. Rithm Capital’s ownership interest in such entity is accounted for under the equity method and is presented within Other assets on the Consolidated Balance Sheets. Management Fees and Incentive Income Earned from Related Parties and Waived Fees The Company earns substantially all of its management fees and incentive income from the funds, which are considered related parties as Sculptor manages the operations of and makes investment decisions for these funds. As of March 31, 2024, approximately $708.8 million of the Company’s assets under management (“AUM”) represented investments by Sculptor, its current executive managing directors, employees and certain other related parties in Sculptor’s funds. As of March 31, 2024, approximately 53.7% of these AUM were not charged management or incentive fees. Due from Related Parties The Company pays certain expenses on behalf of the funds. Amounts due from related parties relate primarily to reimbursements to Sculptor for these expenses. Due from related parties is presented within Other assets on the Consolidated Balance Sheets. Investment in Structured Alternative Investment Solution In the first quarter of 2022, Sculptor closed on a $350.0 million structured alternative investment solution, a collateralized financing vehicle consolidated by Sculptor. Sculptor invested approximately $127.8 million in the vehicle. See Note 20 and Note 21 for additional details on the structured alternative investment solution. Investments in Consolidated Loan Securitizations The Company retains beneficial interests in consolidated loan securitization trusts that it sponsors. Refer to Note 21 for additional details. Other Commitments The Company holds a derivative liability to an affiliate, which is measured at fair value. Refer to Note 18 for additional details. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense (benefit) consists of the following: Three Months Ended 2024 2023 Current: Federal $ 613 $ 17 State and local 396 22 Foreign 1,775 — Total current income tax expense (benefit) 2,784 39 Deferred: Federal 76,453 (14,168) State and local 13,237 (2,677) Foreign 938 — Total deferred income tax expense (benefit) 90,628 (16,845) Total income tax expense (benefit) $ 93,412 $ (16,806) Rithm Capital intends to qualify as a REIT for each of its tax years through December 31, 2024. A REIT is generally not subject to US 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 origination and servicing, asset management and portions of the investment portfolio, through 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 for further details. As of March 31, 2024, Rithm Capital recorded a net deferred tax liability of $898.0 million, primarily composed of deferred tax liabilities generated through the deferral of gains from residential mortgage loans sold by the origination business and changes in fair value of MSRs, loans and swaps held within taxable entities, which is reported within accrued expenses and other liabilities in the Consolidated Balance Sheets. As of March 31, 2024, Sculptor recorded a net deferred tax asset of $284.9 million, primarily composed of net operating losses and tax deductible goodwill, which is reported within other assets in the Consolidated Balance Sheets. |
ASSET MANAGEMENT REVENUES
ASSET MANAGEMENT REVENUES | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
ASSET MANAGEMENT REVENUES | ASSET MANAGEMENT REVENUES The following table presents the composition of asset management revenues earned by Sculptor: Three Months Ended 2024 Management fees $ 57,130 Incentive income 13,821 Other asset management revenue 4,909 Total asset management revenues $ 75,860 The following table presents the composition of the Company’s income and fees receivable through Sculptor: March 31, 2024 December 31, 2023 Management fees receivable $ 21,548 $ 23,757 Incentive income receivable 28,281 35,377 Total income and fees receivable $ 49,829 $ 59,134 The Company recognizes management fees over the period in which the performance obligation is satisfied, and such management fees are generally recognized at the end of each reporting period. The Company records incentive income when it is probable that a significant reversal of income will not occur. The majority of management fees and incentive income receivable at each balance sheet date is generally collected during the following quarter. The following table presents the Company’s unearned income and fees through Sculptor: March 31, 2024 December 31, 2023 Unearned management fees $ 1 $ 1 Unearned incentive income 38,992 37,467 Total unearned income and fees $ 38,993 $ 37,468 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS These financial statements include a discussion of material events that have occurred subsequent to March 31, 2024 through the issuance of these consolidated financial statements. Events subsequent to that date have not been considered in these financial statements. Computershare Acquisition Rithm Capital completed the Computershare Acquisition, and simultaneous merger of SLS and Newrez, on May 1, 2024 for a cash purchase price of approximately $720.0 million. The Computershare Acquisition included approximately $45.0 billion UPB of MSRs and $104.0 billion of third-party servicing UPB, along with SLS’s origination services business. Given the recent timing of the transaction, the Company is currently evaluating the purchase price allocation. It is impracticable to disclose the preliminary purchase price allocation for this acquisition given the short period of time between the acquisition date and the issuance of these consolidated financial statements. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Income Taxes | Rithm Capital has elected and intends to qualify to be taxed as a REIT for US federal income tax purposes. As such, Rithm Capital will generally not be subject to US federal corporate income tax on that portion of its net income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. See Note 25 for additional information regarding Rithm Capital’s taxable REIT subsidiaries (“TRSs”). |
Interim Financial Statements | Interim Financial Statements |
Reclassifications | Reclassifications — Certain prior period amounts in Rithm Capital’s consolidated financial statements and respective notes have been reclassified to be consistent with the current period presentation. Such reclassifications had no impact on net income, total assets, total liabilities or stockholders’ equity. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets — The Company reviews long-lived assets for impairment when events or changes in circumstances indicate the carrying value of these assets may exceed their current fair values. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment charges were recognized on long-lived assets for the three months ended March 31, 2024. Subsequently, if events or market conditions affect the estimated fair value of an impaired long-lived asset, the Company will adjust the carrying value of these long-lived assets in the period in which the impairment occurs. |
Risks and Uncertainties | Risks and Uncertainties — In the normal course of its business, Rithm Capital primarily encounters two significant types of economic risk: credit risk and market risk. Credit risk is the risk of default on Rithm Capital’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of investments due to changes in prepayment rates, interest rates, spreads or other market factors, including risks that impact the value of the collateral underlying Rithm Capital’s investments. Taking into consideration these risks along with estimated prepayments, financings, collateral values, payment histories and other information, Rithm Capital believes that the carrying values of its investments are reasonable. Furthermore, for each of the periods presented, a significant portion of Rithm Capital’s assets are dependent on its servicers’ and subservicers’ abilities to perform their servicing obligations with respect to the residential mortgage loans underlying Rithm Capital’s Excess mortgage servicing rights (“Excess MSRs”), mortgage servicing rights (“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. |
Use of Estimates | Use of Estimates — The preparation of the consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect reported amounts in the consolidated financial statements and accompanying notes. Management believes that estimates utilized in preparation of the consolidated financial statements are reasonable. The most critical estimates include those related to fair value measurements of the Company’s assets and liabilities, goodwill and intangible assets, and the disclosure of contingent assets and liabilities at the reporting date. Actual results could differ from those estimates and such differences could be material. |
Foreign Currency | Foreign Currency — The functional currency of substantially all of the Company’s consolidated subsidiaries is the US dollar, as their operations are considered extensions of the US parent’s operations. Monetary assets and liabilities denominated in foreign currencies are remeasured into US dollars at the closing rates of exchange on the balance sheet date. Nonmonetary assets and liabilities denominated in foreign currencies are remeasured into US dollars using the historical exchange rate. As a result, no transaction gains or losses are recognized for nonmonetary assets and liabilities. The profit or loss arising from foreign currency transactions are remeasured using the rate in effect on the date of any relevant transaction. Gains and losses on transactions denominated in foreign currencies due to changes in exchange rates are recorded within general and administrative on the Consolidated Statements of Operations. Unrealized gains and losses due to changes in exchange rates related to investments denominated in a currency other than an entity’s functional currency are reported in net realized and unrealized gains (losses) in the Consolidated Statements of Operations. The Company has a subsidiary acquired as part of the acquisition of Sculptor whose functional currency is the Euro, and the financial statements of such entity are translated into US dollars using the exchange rates prevailing at the end of each reporting period, and the statement of operations of the entity is translated using the rate in effect on the date of any relevant transaction. Gains and losses arising from the translation of monetary assets and liabilities are recorded as a cumulative translation adjustment in the Consolidated Statements of Comprehensive Income and are included in accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. See Note 2 in the Company’s Amended 2023 Form 10-K/A for the complete listing of the significant accounting policies. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The standard was issued to ease the accounting effects of reform to the London Interbank Offered Rate (“LIBOR”) and other reference rates. The standard provides optional expedients and exceptions for applying GAAP to debt, derivatives and other contracts affected by reference rate reform. The standard was effective as of March 2020. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 deferring the expiration date to December 31, 2024. As of June 30, 2023, the Company has transitioned from LIBOR to an alternative benchmark. The Company's financing arrangements have provisions in place that provide for an alternative to LIBOR. In addition, the Company has amended the terms of certain financing arrangements, where necessary, to transition or direct the transition to an alternative benchmark. The Company does not currently intend to amend the 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series A”), the 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series B”) or the 6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series C”) to change the existing USD-LIBOR cessation fallback language. In 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 interim and annual periods beginning after December 15, 2023. The Company’s adoption of the new standard did not have a material effect on its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . This standard requires public companies to disclose information about their reportable segments’ significant expenses on an interim and annual basis to provide more transparency about the expenses they incur from revenue generating business units. The new standard is effective for annual periods 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. In March 2024, the FASB issued ASU 2024-01, Compensation-Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards , to clarify the scope application of profits interest and similar awards by adding illustrative guidance to help entities determine whether profit interests and similar awards should be accounted for as share-based payment arrangements within the scope of ASC 718, Compensation-Stock Compensation . The ASU’s amendments are effective for fiscal years beginning after December 15, 2024, including interim periods within those years. The Company does not expect the adoption of ASU 2024-01 to have a material effect on its consolidated financial statements. |
RESTATEMENT OF PREVIOUSLY ISS_2
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Adjustments | Accordingly, the tables below present the effect of these adjustments, including the reclassifications, on the affected line items in the Company’s Consolidated Balance Sheets, Consolidated Statements of Operations and Consolidated Statements of Cash Flows as reported in the Company’s Quarterly Report on Form 10-Q as of and for the three months ended March 31, 2024. Consolidated Balance Sheet: March 31, 2024 As Reported Error Adjustments * Subtotal Reclassifications (c)* As Restated Assets Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value $ 8,706,723 $ — $ 8,706,723 $ — $ 8,706,723 Real estate and other securities (includes $14,832,401 at fair value) 15,314,199 (456,913) (a) 14,857,286 — 14,857,286 Residential mortgage loans, held-for-investment, at fair value 365,398 — 365,398 — 365,398 Residential mortgage loans, held-for-sale (includes $3,691,700 at fair value) (A) 3,766,115 — 3,766,115 — 3,766,115 Consumer loans, held-for-investment, at fair value (A) 1,103,799 — 1,103,799 — 1,103,799 Single-family rental properties 1,007,172 — 1,007,172 — 1,007,172 Mortgage loans receivable, at fair value 2,384,744 — 2,384,744 (341,831) 2,042,913 Residential mortgage loans subject to repurchase 1,845,889 — 1,845,889 — 1,845,889 Cash and cash equivalents (A) 1,136,437 — 1,136,437 — 1,136,437 Restricted cash (A) 394,546 10,856 (b) 405,402 (22,463) 382,939 Servicer advances receivable 2,586,409 — 2,586,409 — 2,586,409 Reverse repurchase agreement — 3,040,756 (b) 3,040,756 — 3,040,756 Other assets (includes $1,124,961 at fair value) (A) 3,509,497 (53,737) (b) 3,455,760 (344,074) 3,111,686 Assets of consolidated CFEs (A) : Investments, at fair value and other assets — 3,273,691 (a) 3,273,691 708,368 3,982,059 Total Assets $ 42,120,928 $ 5,814,653 $ 47,935,581 $ — $ 47,935,581 Liabilities and Equity Liabilities Secured financing agreements (A) $ 18,271,046 $ — $ 18,271,046 $ — $ 18,271,046 Secured notes and bonds payable (includes $221,922 at fair value) (A) 10,045,375 — 10,045,375 (324,062) 9,721,313 Residential mortgage loan repurchase liability 1,845,889 — 1,845,889 — 1,845,889 Unsecured notes, net of issuance costs 1,205,411 — 1,205,411 — 1,205,411 Treasury securities payable — 2,992,477 (b) 2,992,477 — 2,992,477 Payable for investments purchased 1,271,542 — 1,271,542 — 1,271,542 Dividends payable 135,695 — 135,695 — 135,695 Accrued expenses and other liabilities (includes $33,586 at fair value) (A) 2,102,598 5,488 (b) 2,108,086 (223,559) 1,884,527 Liabilities of consolidated CFEs (A) : — Notes payable, at fair value and other liabilities — 2,816,688 (a) 2,816,688 547,621 3,364,309 Total Liabilities 34,877,556 5,814,653 40,692,209 — 40,692,209 Equity Preferred stock, $0.01 par value, 100,000,000 shares authorized, 51,964,122 issued and outstanding, $1,299,104 aggregate liquidation preference 1,257,254 — 1,257,254 — 1,257,254 Common stock, $0.01 par value, 2,000,000,000 shares authorized, 483,477,713 issued and outstanding 4,836 — 4,836 — 4,836 Additional paid-in capital 6,075,080 — 6,075,080 — 6,075,080 Retained earnings (accumulated deficit) (232,119) — (232,119) — (232,119) Accumulated other comprehensive income 44,501 — 44,501 — 44,501 Total Rithm Capital stockholders’ equity 7,149,552 — 7,149,552 — 7,149,552 Noncontrolling interests in equity of consolidated subsidiaries 93,820 — 93,820 — 93,820 Total Equity 7,243,372 — 7,243,372 — 7,243,372 Total Liabilities and Equity $ 42,120,928 $ 5,814,653 $ 47,935,581 $ — $ 47,935,581 (A) The Company's Consolidated Balance Sheets include assets and liabilities of consolidated VIEs and certain other consolidated VIEs classified as CFEs that are presented separately and measured under the CFE election. VIE assets can only be used to settle obligations and liabilities of the VIEs. VIE creditors do not have recourse to Rithm Capital Corp. As of March 31, 2024, total assets of such consolidated VIEs were $5.8 billion, and total liabilities of such consolidated VIEs were $4.9 billion. See Note 21 for further details. * See the beginning of this Note 3, for explanations of the adjustments and reclassifications by type referenced in the above table as (a), (b), and (c). Consolidated Statement of Operations: Three Months Ended March 31, 2024 As Reported Error Adjustments * Subtotal Reclassifications (c)* As Restated Revenues Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 470,203 $ (312) (a) $ 469,891 $ — $ 469,891 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(116,839)) 84,175 — 84,175 — 84,175 Servicing revenue, net 554,378 (312) 554,066 — 554,066 Interest income 448,179 (9,348) (a) 438,831 (8,945) 429,886 Gain on originated residential mortgage loans, held-for-sale, net 149,545 (7,087) (a) 142,458 — 142,458 Other revenues 58,348 — 58,348 — 58,348 1,210,450 (16,747) 1,193,703 (8,945) 1,184,758 Asset Management Asset management revenues 75,860 — 75,860 — 75,860 1,286,310 (16,747) 1,269,563 (8,945) 1,260,618 Expenses Interest expense and warehouse line fees 414,365 — 414,365 (4,538) 409,827 General and administrative 195,118 2,076 (a) 197,194 — 197,194 Compensation and benefits 235,778 — 235,778 — 235,778 845,261 2,076 847,337 (4,538) 842,799 Other Income (Loss) Realized and unrealized gains (losses), net (68,134) 18,881 (a) (49,253) 4,407 (44,846) Other income (loss), net 7,984 (58) (a) 7,926 — 7,926 (60,150) 18,823 (41,327) 4,407 (36,920) Income (loss) before income taxes 380,899 — 380,899 — 380,899 Income tax expense (benefit) 93,412 — 93,412 — 93,412 Net Income (loss) $ 287,487 $ — $ 287,487 $ — $ 287,487 Noncontrolling interests in income (loss) of consolidated subsidiaries 3,452 — 3,452 — 3,452 Dividends on preferred stock 22,395 — 22,395 — 22,395 Net income (loss) attributable to common stockholders $ 261,640 $ — $ 261,640 $ — $ 261,640 Net Income (loss) per share of common stock Basic $ 0.54 $ — $ 0.54 $ — $ 0.54 Diluted $ 0.54 $ — $ 0.54 $ — $ 0.54 Weighted average number of shares of common stock outstanding Basic 483,336,777 — 483,336,777 — 483,336,777 Diluted 485,931,501 — 485,931,501 — 485,931,501 Dividends declared per share of common stock $ 0.25 $ — $ 0.25 $ — $ 0.25 * See the beginning of this Note 3, for explanations of the adjustments and reclassifications by type referenced in the above table as (a), (b), and (c). Consolidated Statement of Cash Flows: Three Months Ended March 31, 2024 As Reported Error Adjustments * Subtotal Reclassifications (c)* As Restated Net income (loss) $ 287,487 $ — $ 287,487 $ — $ 287,487 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Change in fair value of investments, net 341,744 (525) (a) 341,219 — 341,219 Change in fair value of equity investments (6,012) — (6,012) — (6,012) Change in fair value of secured notes and bonds payable 4,605 — 4,605 — 4,605 (Gain) loss on settlement of investments, net (274,709) — (274,709) — (274,709) (Gain) loss on sale of originated residential mortgage loans, held-for-sale, net (149,545) 7,088 (a) (142,457) — (142,457) (Gain) loss on transfer of loans to real estate owned ("REO") (2,166) — (2,166) — (2,166) Accretion and other amortization (21,091) (133) (a) (21,224) — (21,224) Provision (reversal) for credit losses on securities, loans and REO 462 — 462 — 462 Non-cash portions of servicing revenue, net (76,376) — (76,376) — (76,376) Deferred tax provision 90,628 — 90,628 — 90,628 Mortgage loans originated and purchased for sale, net of fees (11,439,065) — (11,439,065) — (11,439,065) Sales proceeds and loan repayment proceeds for residential mortgage loans, held-for-sale 10,114,343 (257,597) (a) 9,856,746 — 9,856,746 Residential mortgage loan repayment proceeds of consolidated CFEs — 80,822 (a) 80,822 — 80,822 Interest received from servicer advance investments, loans and other 13,488 — 13,488 — 13,488 Purchase of investments of consolidated CFEs — — — (9,811) (9,811) Proceeds from sale and repayments of investments of consolidated CFEs — — — 2,090 2,090 Changes in: Servicer advances receivable, net 165,425 — 165,425 — 165,425 Other assets 29,916 — 29,916 7,721 37,637 Accrued expenses and other liabilities (223,335) — (223,335) — (223,335) Net cash provided by (used in) operating activities (1,144,201) (170,345) (1,314,546) — (1,314,546) Cash Flows From Investing Activities Purchase of US Treasuries (4,733,368) — (4,733,368) — (4,733,368) Purchase of servicer advance investments (212,656) — (212,656) — (212,656) Purchase of RMBS (16,928) 15,037 (a) (1,891) (1,891) US Treasury short sales 1,425,370 — 1,425,370 — 1,425,370 Reverse repurchase agreements entered (1,256,872) — (1,256,872) — (1,256,872) Purchase of Single-family rental (“SFR”) properties, MSRs and other assets (63,877) — (63,877) — (63,877) Draws on revolving consumer loans (4,113) — (4,113) — (4,113) Origination of mortgage loans receivable (649,698) — (649,698) — (649,698) Net settlement of derivatives 371,827 — 371,827 — 371,827 Return of investments in Excess MSRs 10,423 — 10,423 — 10,423 Principal repayments from servicer advance investments 224,039 — 224,039 — 224,039 Principal repayments from RMBS 177,333 (12,009) (a) 165,324 — 165,324 Principal repayments from residential mortgage loans 12,187 — 12,187 — 12,187 Principal repayments from consumer loans 153,479 — 153,479 — 153,479 Principal repayments from mortgage loans receivable 505,091 — 505,091 (81,822) 423,269 Three Months Ended March 31, 2024 As Reported Error Adjustments * Subtotal Reclassifications (c)* As Restated Mortgage loans receivable repayment proceeds of consolidated entities — — — 81,822 81,822 Proceeds from sale of MSRs and MSR financing receivables (671) — (671) — (671) Proceeds from sale of REO 5,216 — 5,216 — 5,216 Net cash provided by (used in) investing activities (4,053,218) 3,028 (4,050,190) — (4,050,190) Cash Flows From Financing Activities Repayments of secured financing agreements (18,055,590) — (18,055,590) — (18,055,590) Repayments of warehouse credit facilities (10,778,294) — (10,778,294) — (10,778,294) Repayment of unsecured senior notes (275,000) — (275,000) — (275,000) Net settlement of margin deposits under repurchase agreements and derivatives (346,569) — (346,569) — (346,569) Repayments of secured notes and bonds payable (1,405,197) — (1,405,197) — (1,405,197) Deferred financing fees (8,298) — (8,298) — (8,298) Dividends paid on common and preferred stock (143,298) — (143,298) — (143,298) Borrowings under secured financing agreements 22,495,882 — 22,495,882 — 22,495,882 Borrowings under warehouse credit facilities 12,047,306 — 12,047,306 — 12,047,306 Borrowings under notes receivable financing — — — — — Borrowings under secured notes and bonds payable 761,266 — 761,266 — 761,266 Proceeds from issuance of unsecured senior notes 767,103 — 767,103 — 767,103 Noncontrolling interest in equity of consolidated subsidiaries - distributions (3,728) — (3,728) — (3,728) Proceeds from issuance of debt obligations of consolidated CFEs — 257,597 (a) 257,597 — 257,597 Repayments of debt obligations of consolidated CFEs — (87,545) (a) (b) (87,545) — (87,545) Net cash provided by (used in) financing activities 5,055,583 170,052 5,225,635 — 5,225,635 Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash (141,836) 2,735 (139,101) — (139,101) Cash, Cash Equivalents and Restricted Cash, Beginning of Period 1,672,819 24,276 (a) (b) 1,697,095 — 1,697,095 Cash, Cash Equivalents and Restricted Cash, End of Period $ 1,530,983 $ 27,011 $ 1,557,994 $ — $ 1,557,994 Supplemental Disclosure of Cash Flow Information Cash paid during the period for interest 419,701 46,263 (a) 465,964 — 465,964 Cash paid during the period for income taxes 1,259 — 1,259 — 1,259 Supplemental Schedule of Non-Cash Investing and Financing Activities Dividends declared but not paid on common and preferred stock 143,199 — 143,199 — 143,199 Transfer from residential mortgage loans to REO and other assets 5,917 — 5,917 — 5,917 Real estate securities retained from loan securitizations 34,203 (34,203) (a) — — — Residential mortgage loans subject to repurchase 1,845,889 — 1,845,889 — 1,845,889 Purchase of Agency RMBS, settled after quarter-end 1,271,542 — 1,271,542 — 1,271,542 |
SEGMENT REPORTING (AS RESTATE_2
SEGMENT REPORTING (AS RESTATED) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Data | The following tables summarize segment financial information, which in total reconciles to the same data for Rithm Capital on a consolidated basis: Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Corporate Total Three Months Ended March 31, 2024 (As Restated) Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 397,478 $ 72,413 $ — $ — $ — $ 469,891 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(116,839)) 93,361 (9,186) — — — 84,175 Servicing revenue, net 490,839 63,227 — — — 554,066 Interest income 140,021 225,143 64,720 — 2 429,886 Gain on originated residential mortgage loans, HFS, net 145,869 (3,411) — — — 142,458 Other investment portfolio revenues — 58,348 — — — 58,348 Asset management revenues (A) — — — 75,860 — 75,860 Total revenues 776,729 343,307 64,720 75,860 2 1,260,618 Interest expense and warehouse line fees 131,174 228,074 32,414 7,621 10,544 409,827 General and administrative 83,564 66,997 4,754 31,935 9,944 197,194 Compensation and benefits 153,806 4,743 11,303 63,112 2,814 235,778 Total operating expenses 368,544 299,814 48,471 102,668 23,302 842,799 Realized and unrealized gains (losses), net — (62,570) 24,566 (6,842) — (44,846) Other income (loss), net (36) 3,682 274 3,969 37 7,926 Total other income (loss) (36) (58,888) 24,840 (2,873) 37 (36,920) Income (loss) before income taxes 408,149 (15,395) 41,089 (29,681) (23,263) 380,899 Income tax expense (benefit) 96,201 1,248 (333) (3,704) — 93,412 Net income (loss) 311,948 (16,643) 41,422 (25,977) (23,263) 287,487 Noncontrolling interests in income (loss) of consolidated subsidiaries 55 2,037 — 1,360 — 3,452 Dividends on preferred stock — — — — 22,395 22,395 Net income (loss) attributable to common stockholders $ 311,893 $ (18,680) $ 41,422 $ (27,337) $ (45,658) $ 261,640 (A) Includes $4.9 million of asset management related interest income (Note 26). Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Corporate Total March 31, 2024 (As Restated) Investments $ 10,844,061 $ 18,750,436 $ 2,042,913 $ 211,996 $ — $ 31,849,406 Cash and cash equivalents 468,355 505,162 60,713 82,460 19,747 1,136,437 Restricted cash 237,186 93,654 43,851 8,248 — 382,939 Other assets 3,427,033 6,044,513 128,310 829,427 23,600 10,452,883 Goodwill 24,376 5,092 55,731 46,658 — 131,857 Assets of consolidated CFEs — 3,273,690 358,326 350,043 — 3,982,059 Total assets $ 15,001,011 $ 28,672,547 $ 2,689,844 $ 1,528,832 $ 43,347 $ 47,935,581 Debt $ 7,621,241 $ 18,446,477 $ 1,657,136 $ 442,350 $ 1,030,566 $ 29,197,770 Other liabilities 3,294,952 4,415,974 20,064 214,043 185,097 8,130,130 Liabilities of consolidated CFEs — 2,816,688 324,433 223,188 — 3,364,309 Total liabilities 10,916,193 25,679,139 2,001,633 879,581 1,215,663 40,692,209 Total equity 4,084,818 2,993,408 688,211 649,251 (1,172,316) 7,243,372 Noncontrolling interests in equity of consolidated subsidiaries 8,051 43,426 — 42,343 — 93,820 Total Rithm Capital stockholders’ equity $ 4,076,767 $ 2,949,982 $ 688,211 $ 606,908 $ (1,172,316) $ 7,149,552 Investments in equity method investees $ — $ 117,146 $ — $ 102,000 $ — $ 219,146 Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Corporate Total Three Months Ended March 31, 2023 (As Restated) Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 349,424 $ 120,233 $ — $ — $ — $ 469,657 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(105,691)) (37,526) (104,778) — — — (142,304) Servicing revenue, net 311,898 15,455 — — — 327,353 Interest income 109,766 170,586 49,671 — — 330,023 Gain on originated residential mortgage loans, HFS, net 108,221 1,047 — — — 109,268 Other investment portfolio revenues — 58,144 — — — 58,144 Asset management revenues — — — — — — Total revenues 529,885 245,232 49,671 — — 824,788 Interest expense and warehouse line fees 111,069 157,910 25,839 — 9,397 304,215 General and administrative 80,832 74,693 4,129 — 7,825 167,479 Compensation and benefits 160,514 7,136 12,102 — 9,128 188,880 Total operating expenses 352,415 239,739 42,070 — 26,350 660,574 Realized and unrealized gains (losses), net (23) (64,883) (999) — — (65,905) Other income (loss), net (13,427) (5,270) 1,713 — (8,182) (25,166) Total other income (loss) (13,450) (70,153) 714 — (8,182) (91,071) Income (loss) before income taxes 164,020 (64,660) 8,315 (34,532) 73,143 Income tax expense (benefit) (3,672) (11,040) (2,094) — — (16,806) Net income (loss) 167,692 (53,620) 10,409 — (34,532) 89,949 Noncontrolling interests in income (loss) of consolidated subsidiaries (42) (1,258) — — — (1,300) Dividends on preferred stock — — — — 22,395 22,395 Net income (loss) attributable to common stockholders $ 167,734 $ (52,362) $ 10,409 $ — $ (56,927) 68,854 |
EXCESS MORTGAGE SERVICING RIG_2
EXCESS MORTGAGE SERVICING RIGHTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Transfers and Servicing [Abstract] | |
Schedule of Components of Excess MSRs and Carrying Value of Direct Investments in Excess MSRs | The table below summarizes the components of Excess MSRs: March 31, 2024 December 31, 2023 Direct investments in Excess MSRs $ 199,363 $ 208,385 Excess MSR joint ventures 55,748 62,765 Excess MSRs, at fair value $ 255,111 $ 271,150 The following table presents activity related to the carrying value of direct investments in Excess MSRs: Total (A) Balance as of December 31, 2023 $ 208,385 Interest income 2,446 Other income — Proceeds from repayments (9,546) Proceeds from sales — Change in fair value (1,922) Balance as of March 31, 2024 $ 199,363 (A) The following table summarizes activity related to MSRs and MSR financing receivables: Balance at December 31, 2023 $ 8,405,938 Purchases, net — Originations (A) 215,939 Sales 671 Change in fair value due to: Realization of cash flows (B) (116,839) Change in valuation inputs and assumptions 201,014 Balance at March 31, 2024 $ 8,706,723 (A) Represents MSRs retained on the sale of originated residential mortgage loans. (B) Based on the paydown of the underlying residential mortgage loans. The following table summarizes MSRs and MSR financing receivables by type as of March 31, 2024: UPB of Underlying Mortgages Weighted Average Life (Years) (A) Carrying Value (B) Agency $ 348,953,092 7.8 $ 5,477,522 Non-Agency 47,806,353 6.8 666,958 Ginnie Mae (C) 129,914,381 7.2 2,562,243 Total/Weighted Average $ 526,673,826 7.5 $ 8,706,723 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Represents fair value. As of March 31, 2024, weighted average discount rates of 8.5% (range of 7.9% – 10.8%) were used to value Rithm Capital’s MSRs and MSR financing receivables. (C) As of March 31, 2024, Rithm Capital holds approximately $1.8 billion in residential mortgage loans subject to repurchase and the related residential mortgage loans repurchase liability on its Consolidated Balance Sheets. |
Schedule of Direct Investments in Excess MSRs and Changes in Fair Value of Investments of Excess MSR | The following summarizes direct investments in Excess MSRs: March 31, 2024 December 31, 2023 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis Carrying Value (B) Carrying Value (B) Rithm Capital (C, D) Former Manager-managed funds Mr. Cooper $ 41,899,426 32.5% – 100.0% (56.4%) 0.0% – 50.0% 0.0% – 35.0% 6.0 $ 174,621 $ 199,363 $ 208,385 (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 also invested in related servicer advance investments, including the basic fee component of the related MSR as of March 31, 2024 (Note 7) on $14.9 billion unpaid principal balance (“UPB”) underlying these Excess MSRs. Changes in fair value of Excess MSR investments consist of the following: Three Months Ended 2024 2023 Original and Recaptured Pools $ (1,922) $ (9,818) |
Schedule of Financial Results of the Excess MSR Joint Ventures, Accounted for Under the Equity Method Investees and Activity of Investments in Equity Method Investees | The following tables summarize the financial results of the Excess MSR joint ventures, accounted for under the equity method of accounting: March 31, 2024 December 31, 2023 Excess MSRs $ 111,664 $ 114,552 Other assets 519 11,664 Other liabilities (687) (687) Equity $ 111,496 $ 125,529 Rithm Capital’s investment $ 55,748 $ 62,765 Rithm Capital’s percentage ownership 50.0 % 50.0 % Three Months Ended 2024 2023 Interest income $ 3,454 $ 2,404 Other income (loss) (3,330) (5,225) Expenses (14) (8) Net income (loss) $ 110 $ (2,829) The following table summarizes the activity of investments in equity method investees: Balance at December 31, 2023 $ 62,765 Distributions of earnings from equity method investees (107) Distributions of capital from equity method investees (6,965) Change in fair value of investments in equity method investees 55 Balance at March 31, 2024 $ 55,748 |
Schedule of Excess MSR Investments Made through Equity Method Investees | The following is a summary of Excess MSR investments made through equity method investees: As of March 31, 2024 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 $ 16,678,050 66.7 % 50.0 % $ 92,197 $ 111,664 5.2 (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 expected cash flows of each investment. |
MORTGAGE SERVICING RIGHTS AND_2
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (AS RESTATED) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Schedule of Activity Reated to MSRs and MSR Financing Receivables and by Type | The table below summarizes the components of Excess MSRs: March 31, 2024 December 31, 2023 Direct investments in Excess MSRs $ 199,363 $ 208,385 Excess MSR joint ventures 55,748 62,765 Excess MSRs, at fair value $ 255,111 $ 271,150 The following table presents activity related to the carrying value of direct investments in Excess MSRs: Total (A) Balance as of December 31, 2023 $ 208,385 Interest income 2,446 Other income — Proceeds from repayments (9,546) Proceeds from sales — Change in fair value (1,922) Balance as of March 31, 2024 $ 199,363 (A) The following table summarizes activity related to MSRs and MSR financing receivables: Balance at December 31, 2023 $ 8,405,938 Purchases, net — Originations (A) 215,939 Sales 671 Change in fair value due to: Realization of cash flows (B) (116,839) Change in valuation inputs and assumptions 201,014 Balance at March 31, 2024 $ 8,706,723 (A) Represents MSRs retained on the sale of originated residential mortgage loans. (B) Based on the paydown of the underlying residential mortgage loans. The following table summarizes MSRs and MSR financing receivables by type as of March 31, 2024: UPB of Underlying Mortgages Weighted Average Life (Years) (A) Carrying Value (B) Agency $ 348,953,092 7.8 $ 5,477,522 Non-Agency 47,806,353 6.8 666,958 Ginnie Mae (C) 129,914,381 7.2 2,562,243 Total/Weighted Average $ 526,673,826 7.5 $ 8,706,723 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Represents fair value. As of March 31, 2024, weighted average discount rates of 8.5% (range of 7.9% – 10.8%) were used to value Rithm Capital’s MSRs and MSR financing receivables. (C) As of March 31, 2024, Rithm Capital holds approximately $1.8 billion in residential mortgage loans subject to repurchase and the related residential mortgage loans repurchase liability on its Consolidated Balance Sheets. |
Schedule of Components of Servicing Revenue, Net | The following table summarizes components of servicing revenue, net: Three Months Ended 2024 (As Restated) 2023 (As Restated) Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 430,114 $ 439,050 Ancillary and other fees 39,777 30,607 Servicing fee revenue, net and fees 469,891 469,657 Change in fair value due to: Realization of cash flows (116,839) (105,691) Change in valuation inputs and assumptions, net of realized gains (losses) 201,014 (36,613) Servicing revenue, net $ 554,066 $ 327,353 |
Schedule of the Geographic Distribution of the Underlying Residential Mortgage Loans of the MSRs and 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 March 31, 2024 December 31, 2023 California 17.0 % 17.1 % Florida 8.6 % 8.6 % Texas 6.2 % 6.2 % New York 6.0 % 6.0 % Washington 5.7 % 5.8 % New Jersey 4.3 % 4.3 % Virginia 3.7 % 3.6 % Maryland 3.4 % 3.4 % Illinois 3.3 % 3.3 % Georgia 3.0 % 3.0 % Other US 38.8 % 38.7 % 100.0 % 100.0 % |
Schedule of Type of Advances Included in the Servicer Advances Receivable | The table below summarizes the type of advances included in the servicer advances receivable: March 31, 2024 December 31, 2023 Principal and interest advances $ 592,660 $ 616,801 Escrow advances (taxes and insurance advances) 1,283,083 1,442,697 Foreclosure advances 775,190 767,171 Total (A)(B)(C) $ 2,650,933 $ 2,826,669 (A) Includes $529.6 million and $585.0 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B) Includes $372.2 million and $405.6 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 value through a non-reimbursable advance loss assumption. (C) Excludes $64.5 million and $66.4 million, respectively, in unamortized advance discount and reserves, net of accruals for advance recoveries. These reserves relate to inactive loans in the foreclosure or liquidation process. Amortized Cost Basis Carrying Value (A) Weighted Average Discount Rate Weighted Average Yield Weighted Average Life (Years) (B) March 31, 2024 Servicer advance investments $ 352,275 $ 374,511 6.2 % 7.0 % 8.4 December 31, 2023 Servicer advance investments $ 362,760 $ 376,881 6.2 % 6.6 % 8.1 (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 March 31, 2024 Servicer advance investments (D) $ 14,871,701 $ 313,271 2.1 % $ 270,705 84.1 % 81.7 % 7.3 % 6.9 % December 31, 2023 Servicer advance investments (D) $ 15,499,559 $ 320,630 2.1 % $ 278,845 84.1 % 81.9 % 7.5 % 6.9 % (A) Based on outstanding servicer advances, excluding purchased but unsettled servicer advances. (B) Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve. (C) Annualized measure of the cost associated with borrowings. Gross cost of funds primarily includes interest expense and facility fees. Net cost of funds excludes facility fees. (D) The following table summarizes the types of advances included in servicer advance investments: March 31, 2024 December 31, 2023 Principal and interest advances $ 54,452 $ 57,909 Escrow advances (taxes and insurance advances) 145,846 149,346 Foreclosure advances 112,973 113,375 Total $ 313,271 $ 320,630 |
Schedule of Servicer Advances Provision Activity | The following table summarizes servicer advances provision activity during the quarter: Balance at December 31, 2023 $ 93,681 Provision 7,217 Write-offs (7,654) Balance at March 31, 2024 $ 93,244 |
SERVICER ADVANCE INVESTMENTS (T
SERVICER ADVANCE INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, All Other Investments [Abstract] | |
Schedule of Servicer Advance Investments and Additional Information Regarding the Servicer Advance Investments and Related Financing | The table below summarizes the type of advances included in the servicer advances receivable: March 31, 2024 December 31, 2023 Principal and interest advances $ 592,660 $ 616,801 Escrow advances (taxes and insurance advances) 1,283,083 1,442,697 Foreclosure advances 775,190 767,171 Total (A)(B)(C) $ 2,650,933 $ 2,826,669 (A) Includes $529.6 million and $585.0 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B) Includes $372.2 million and $405.6 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 value through a non-reimbursable advance loss assumption. (C) Excludes $64.5 million and $66.4 million, respectively, in unamortized advance discount and reserves, net of accruals for advance recoveries. These reserves relate to inactive loans in the foreclosure or liquidation process. Amortized Cost Basis Carrying Value (A) Weighted Average Discount Rate Weighted Average Yield Weighted Average Life (Years) (B) March 31, 2024 Servicer advance investments $ 352,275 $ 374,511 6.2 % 7.0 % 8.4 December 31, 2023 Servicer advance investments $ 362,760 $ 376,881 6.2 % 6.6 % 8.1 (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 March 31, 2024 Servicer advance investments (D) $ 14,871,701 $ 313,271 2.1 % $ 270,705 84.1 % 81.7 % 7.3 % 6.9 % December 31, 2023 Servicer advance investments (D) $ 15,499,559 $ 320,630 2.1 % $ 278,845 84.1 % 81.9 % 7.5 % 6.9 % (A) Based on outstanding servicer advances, excluding purchased but unsettled servicer advances. (B) Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve. (C) Annualized measure of the cost associated with borrowings. Gross cost of funds primarily includes interest expense and facility fees. Net cost of funds excludes facility fees. (D) The following table summarizes the types of advances included in servicer advance investments: March 31, 2024 December 31, 2023 Principal and interest advances $ 54,452 $ 57,909 Escrow advances (taxes and insurance advances) 145,846 149,346 Foreclosure advances 112,973 113,375 Total $ 313,271 $ 320,630 |
REAL ESTATE AND OTHER SECURIT_2
REAL ESTATE AND OTHER SECURITIES (AS RESTATED) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Real Estate and Other Securities by Designation and Purchases and Sales of Real Estate and Other Securities | The following table summarizes real estate and other securities by designation: March 31, 2024 (As Restated) December 31, 2023 (As Restated) Gross Unrealized Weighted Average Outstanding Face Amount Gains Losses Carrying Value (A) Number of Securities Coupon (B) Yield Life (Years) (C) Carrying Value (A) Securities designated as available for sale (“AFS”): Agency (D) $ 73,387 $ — $ — $ 64,331 1 3.5 % 3.5 % 10.8 $ 65,496 Non-Agency (E)(F) 2,409,685 70,861 (25,123) 332,146 308 3.5 % 3.9 % 5.2 337,427 Securities measured at fair value through net income: Agency (D) 9,678,119 41,444 (24,684) 9,501,879 46 5.1 % 5.1 % 11.0 8,467,634 US Treasury (D) 4,500,000 — (8,759) 4,472,656 7 4.3 % 4.3 % 4.1 — Non-Agency (E)(F) 7,331,641 23,312 (41,342) 461,389 421 2.3 % 7.2 % 4.3 466,602 Total/Weighted Average 23,992,832 135,617 (99,908) 14,832,401 783 4.8 % 4.9 % 7.1 $ 9,337,159 (A) Fair value is equal to the carrying value for all securities. See Note 20 regarding the fair value measurements. (B) Excludes residual bonds with a carrying value of $30.1 million for which no coupon payment is expected. (C) Based on the timing of expected principal reduction on the assets. (D) The total outstanding face amount was $14.3 billion for fixed-rate securities as of March 31, 2024. (E) The total outstanding face amount was $7.4 billion (including $6.7 billion of residual) for fixed-rate securities and $2.3 billion (including $2.0 billion of residual) for floating rate securities as of March 31, 2024. (F) Includes other asset-backed securities consisting primarily of (i) collateralized loan obligations backed by corporate debt and commercial MBSs (fair value option securities), (ii) bonds backed by consumer loans (AFS securities), and (iii) interest-only securities and servicing strips (AFS or fair value option securities). These securities are detailed in the table below: Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Gains Losses Carrying Value Number of Securities Coupon Yield Life (Years) Consumer loan bonds 280 259 — 259 1 N/A N/A 1.5 Interest-only securities 3,706,086 7,598 (23,232) 70,026 113 1.0 % 10.9 % 2.3 Servicing strips 2,431,838 3,351 (466) 20,078 50 — % 14.9 % 6.2 Commercial MBSs 3,845 194 — 3,901 2 7.9 % 7.9 % 1.2 CLOs 215,412 4,425 (2,403) 211,996 194 5.5 % 8.7 % 8.6 The following table summarizes purchases and sales of real estate and other securities, as restated: Three Months Ended March 31, 2024 2023 (in millions) Treasury (A) Agency Non-Agency Treasury (A) Agency Non-Agency Purchases Face $ 4,800.0 $ 1,287.0 $ 17.7 $ — $ 2,162.4 $ 25.2 Purchase price 4,773.9 1,255.9 17.6 — 2,154.4 2.4 Sales Face $ — $ — $ — $ — $ 1,462.4 $ — Amortized cost — — — — 1,442.8 — Sale price — — — — 1,395.9 — Realized gain (loss) — — — — (46.9) — (A) |
Schedule of Real Estate and Other Securities, Held to Maturity | The following table summarizes real estate and other securities, held to maturity: March 31, 2024 December 31, 2023 Weighted Average Outstanding Face Amount Amortized Cost / Carrying Value Fair Value Unrecognized Gains /(Losses) Number of Securities Yield Life (Years) Carrying Treasury Bills Designated as Held to Maturity (HTM): Treasury $ 25,000 $ 24,885 $ 24,886 $ 1 1 5.4 % 0.1 $ 24,553 |
Schedule of RMBS Designated as AFS in an Unrealized Loss Position | The following table summarizes certain information for RMBS designated as AFS in an unrealized loss position as of March 31, 2024, as restated: March 31, 2024 December 31, 2023 Securities in an Unrealized Loss Position Outstanding Face Amount Amortized Cost Basis Gross Unrealized Losses Carrying Value Number of Securities Weighted Average Carrying Value Before Credit Impairment Credit Impairment (A) After Credit Impairment Coupon Yield Life Less than 12 Months $ 38,678 $ 37,051 $ (21) $ 37,030 $ (4,486) $ 32,544 28 2.8 % 4.2 % 6.3 $ 49,069 12 or More Months 290,243 269,086 (10,663) 258,423 (20,637) 237,786 140 3.7 % 3.7 % 6.2 231,309 Total/Weighted Average $ 328,921 $ 306,137 $ (10,684) $ 295,453 $ (25,123) $ 270,330 168 3.6 % 3.8 % 6.2 $ 280,378 (A) Represents credit impairment on securities in an unrealized loss position as of March 31, 2024. 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: March 31, 2024 (As Restated) December 31, 2023 (As Restated) 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 intended to sell $ — $ — $ — $ — $ — $ — $ — $ — Securities that are more likely than not required to be sold (C) — — — — — — — — Securities with no intent to sell and are not more likely than not required to be sold: Credit impaired securities 64,525 64,591 (10,684) (66) 65,697 66,377 (10,152) (680) Non-credit impaired securities 205,805 230,862 — (25,057) 214,681 238,489 — (23,808) Total debt securities in an unrealized loss position $ 270,330 $ 295,453 $ (10,684) $ (25,123) $ 280,378 $ 304,866 $ (10,152) $ (24,488) (A) Recognized 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 included in other comprehensive income (loss) in the Company’s Consolidated Statements of Comprehensive Income. (C) Rithm Capital may, at times, be more likely than not 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 makes its best estimate, which is subject to significant judgment regarding future events, and may differ materially from actual future sales. |
Schedule of Activity Related to the Allowance for Credit Losses on RMBS Designated as AFS | The following table summarizes the activity for the period 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, 2023 $ 1,183 $ 8,969 $ 10,152 Additions to the allowance for credit losses on securities for which credit losses were not previously recognized 21 — 21 Additions to the allowance for credit losses arising from purchases of AFS 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 for securities intended to be sold or are more likely than not required to be sold before recovery of its amortized cost basis — — — Additional increases (decreases) to the allowance for credit losses on securities with credit losses, or an allowance recognized in a previous period 595 (84) 511 Write-offs charged against the allowance — — — Recoveries of amounts previously written off — — — Allowance for credit losses on available-for-sale debt securities at March 31, 2024 $ 1,799 $ 8,885 $ 10,684 |
RESIDENTIAL MORTGAGE LOANS (A_2
RESIDENTIAL MORTGAGE LOANS (AS RESTATED) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Schedule of Residential Mortgage Loans Outstanding by Loan Type | The following table summarizes residential mortgage loans outstanding by loan type: March 31, 2024 (As Restated) December 31, 2023 (As Restated) Outstanding Face Amount Carrying Loan Weighted Average Yield Weighted Average Life (Years) (A) Carrying Value Investments of consolidated CFEs (E) $ 3,453,537 $ 3,257,446 9,397 5.6 % 26.8 $ 3,038,587 Residential mortgage loans, held-for-investment, at fair value $ 434,474 $ 365,398 8,070 8.1 % 5.2 $ 379,044 Acquired performing loans (B) 64,851 54,056 1,841 8.0 % 5.3 57,038 Acquired non-performing loans (C) 24,609 20,359 302 8.5 % 6.0 21,839 Total residential mortgage loans, HFS, at lower of cost or market $ 89,460 $ 74,415 2,143 8.1 % 5.5 $ 78,877 Acquired performing loans (B)(D) $ 542,335 $ 490,552 2,979 5.7 % 15.8 $ 400,603 Acquired non-performing loans (C)(D) 294,077 271,316 1,501 4.8 % 23.1 204,950 Originated loans 2,864,943 2,929,832 9,029 6.8 % 29.5 1,856,312 Total residential mortgage loans, HFS, at fair value $ 3,701,355 $ 3,691,700 13,509 6.5 % 27.0 $ 2,461,865 Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market $ 3,790,815 $ 3,766,115 15,652 $ 2,540,742 (A) For loans classified as Level 3 in the fair value hierarchy, the weighted average life is based on the expected timing of the receipt of cash flows. For Level 2 loans, the weighted average life is based on the contractual term of the loan. (B) Performing loans are generally placed on non-accrual status when principal or interest is 90 days or more past due. (C) As of March 31, 2024, Rithm Capital has placed non-performing loans, HFS on non-accrual status, except as described in (D) below. (D) Includes $228.6 million and $222.7 million UPB of Ginnie Mae early buyout options performing and non-performing loans, respectively, on accrual status as contractual cash flows are guaranteed by the FHA. (E) Residential mortgage loans of consolidated CFEs are classified as Level 2 in the fair value hierarchy and valued based on the fair value of the more observable financial liabilities under the CFE election. The following table summarizes Mortgage loans receivable, at fair value and mortgage loans receivable held by consolidated CFEs by loan type as of March 31, 2024, as restated: Mortgage Loans Receivable - Carrying Value (A) Mortgage Loans Receivable of Consolidated CFEs - Carrying Value (A) Total Carrying % of Portfolio Loan % of Portfolio Weighted Average Yield Weighted Average Original Life (Months) Weighted Average Committed Loan Balance to Value (B) Construction $ 882,159 $ 165,529 $ 1,047,688 43.9 % 365 26.1 % 10.9 % 16.8 73.4% / 62.3% Bridge 890,610 146,446 1,037,056 43.5 % 638 45.7 % 9.9 % 27.2 68.1% Renovation 270,144 29,856 300,000 12.6 % 394 28.2 % 10.3 % 12.6 81.2% / 68.4% $ 2,042,913 $ 341,831 $ 2,384,744 100.0 % 1,397 100.0 % 10.4 % 20.5 N/A (A) Mortgage loans receivable are carried at fair value under the fair value option election. Mortgage loans of consolidated CFEs are classified as Level 2, as their value is based on the fair value of the more observable financial liabilities of consolidated CFEs. Mortgage loans of consolidated CFEs are classified as Level 2, as their value is based on the fair value of the more observable financial liabilities of consolidated CFEs. See Note 20 regarding fair value measurements. (B) Weighted by commitment LTV for bridge loans, loan-to-cost and loan-to-after-repair-value for construction and renovation loans. The following table summarizes the activity for the period of Mortgage loans receivable, at fair value on the Consolidated Balance Sheets: Balance at December 31, 2023 (As Restated) $ 1,879,319 Initial loan advances 468,804 Construction holdbacks and draws 180,893 Paydowns and payoffs (423,269) Fair value adjustments 14,873 Purchased loans discount amortization 588 Transfer of loans to REO (840) Transfers from (to) assets of consolidated CFEs (77,455) Balance at March 31, 2024 (As Restated) $ 2,042,913 The following table summarizes the activity for the period for notes and loans receivable: Notes Receivable Loans Receivable Total Balance at December 31, 2023 $ 398,227 $ 31,323 $ 429,550 Fundings — — — Payment in Kind — 1,094 1,094 Proceeds from repayments (33,250) (4,420) (37,670) Fair value adjustments due to: Changes in instrument-specific credit risk — — — Other factors — — — Balance at March 31, 2024 $ 364,977 $ 27,997 $ 392,974 |
Schedule of Geographic Distribution of the Residential Mortgage Loans | : Percentage of Total Outstanding Unpaid Principal Amount State Concentration March 31, 2024 December 31, 2023 California 10.3 % 8.3 % Florida 9.8 % 9.3 % Texas 8.2 % 9.5 % New York 6.3 % 8.0 % Georgia 4.8 % 4.9 % North Carolina 3.7 % 3.2 % Illinois 3.6 % 3.5 % New Jersey 3.6 % 3.9 % Virginia 3.4 % 3.6 % Maryland 3.2 % 3.3 % Other US 43.1 % 42.5 % 100.0 % 100.0 % |
Schedule of Difference Between Aggregate UPB and Aggregate Carrying Value of Loans | March 31, 2024 December 31, 2023 Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB 90+ $ 382,646 $ 344,488 $ (38,158) $ 313,122 $ 281,556 $ (31,566) The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets: March 31, 2024 (As Restated) December 31, 2023 (As Restated) Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB Current $ 1,987,674 $ 2,003,046 $ 15,372 $ 1,838,935 $ 1,837,513 $ (1,422) 90+ 41,264 39,867 (1,397) 41,869 41,806 (63) The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of notes and loans receivable: March 31, 2024 December 31, 2023 Days Past Due UPB Carrying Value (A) Carrying Value Over (Under) UPB UPB Carrying Value (A) Carrying Value Over (Under) UPB Current $ 531,394 $ 392,974 $ (138,420) $ 565,786 $ 429,550 $ (136,236) 90+ — — — — — — (A) Notes and loans receivable are carried at fair value. See Note 20 regarding fair value measurements. |
Schedule of Activity for Residential Mortgage Loans | Loans HFI, at Fair Value Loans HFS, at Lower of Cost or Fair Value Loans HFS, at Fair Value Total Balance at December 31, 2023 (As Restated) $ 379,044 $ 78,877 $ 2,461,865 $ 2,919,786 Originations — — 10,869,683 10,869,683 Sales — — (9,849,739) (9,849,739) Purchases/additional fundings — — 502,625 502,625 Proceeds from repayments (11,854) (3,330) (10,029) (25,213) Transfer of loans (to) from other assets (A) — (364) (285,165) (285,529) Transfer of loans to REO (994) (561) (2,204) (3,759) Impairment (loss) reversal — (207) — (207) Fair value adjustments due to: Changes in instrument-specific credit risk (3,475) — (390) (3,865) Other factors 2,677 — 5,054 7,731 Balance at March 31, 2024 (As Restated) $ 365,398 $ 74,415 $ 3,691,700 $ 4,131,513 |
Schedule of Net Interest Income | Three Months Ended 2024 2023 Interest income: Loans HFI, at fair value $ 7,857 $ 9,509 Loans HFS, at lower of cost or fair value 861 1,504 Loans HFS, at fair value 36,016 37,286 Total interest income $ 44,734 $ 48,299 Interest expense: Loans HFI, at fair value 4,224 4,670 Loans HFS, at lower of cost or fair value 716 907 Loans HFS, at fair value 37,238 42,779 Total interest expense $ 42,178 $ 48,356 Net interest income $ 2,556 $ (57) |
Schedule of Components of Gain on Originated Residential Mortgage Loans, HFS, Net | The following table summarizes the components of gain on originated residential mortgage loans, HFS, net: Three Months Ended 2024 (As Restated) 2023 (As Restated) Gain (loss) on residential mortgage loans originated and sold, net (A) $ (124,113) $ (34,314) Gain (loss) on settlement of residential mortgage loan origination derivative instruments (B) (15,524) 9,904 MSRs retained on transfer of residential mortgage loans (C) 215,939 140,513 Other (D) 6,493 (5,443) Realized gain on sale of originated residential mortgage loans, net $ 82,795 $ 110,660 Change in fair value of residential mortgage loans 14,268 31,598 Change in fair value of interest rate lock commitments (Note 18) 7,485 26,240 Change in fair value of derivative instruments (Note 18) 37,910 (59,230) Gain on originated residential mortgage loans, HFS, net $ 142,458 $ 109,268 (A) Includes residential mortgage loan origination fees of $177.7 million and $68.9 million for the three months ended March 31, 2024 and 2023, respectively. (B) Represents settlement of forward securities delivery commitments utilized as an economic hedge for mortgage loans not included within forward loan sale commitments. (C) Represents the initial fair value of the capitalized MSRs 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) | 3 Months Ended |
Mar. 31, 2024 | |
Investments In Consumer Loans Equity Method Investees [Abstract] | |
Schedule of Consumer Loan Portfolio | The following table summarizes characteristics of the consumer loan portfolio measured at fair value: Unpaid Principal Balance Carrying Value Weighted Average Coupon Weighted Average Expected Life (Years) March 31, 2024 SpringCastle $ 246,553 $ 267,948 18.2 % 3.8 Marcus 908,089 835,851 10.1 % 1.0 Total consumer loans $ 1,154,642 $ 1,103,799 11.8 % 1.6 December 31, 2023 SpringCastle $ 260,102 $ 285,632 18.2 % 3.7 Marcus 1,048,672 988,373 10.5 % 1.2 Total consumer loans $ 1,308,774 $ 1,274,005 12.0 % 1.7 |
Schedule of Past Due Status and Difference Between Aggregate UPB and Aggregate Carrying Value of Consumer Loans | The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of consumer loans: March 31, 2024 December 31, 2023 Days Past Due UPB Carrying Value (A) Carrying Value Over (Under) UPB UPB Carrying Value (A) Carrying Value Over (Under) UPB SpringCastle Current $ 241,454 $ 262,483 $ 21,029 $ 255,441 $ 280,577 $ 25,136 90+ 5,099 5,465 366 4,661 5,055 394 Total SpringCastle $ 246,553 $ 267,948 $ 21,395 $ 260,102 $ 285,632 $ 25,530 Marcus Current $ 842,297 $ 775,293 $ (67,004) $ 1,014,404 $ 956,076 $ (58,328) 90+ 65,792 60,558 (5,234) 34,268 32,297 (1,971) Total Marcus $ 908,089 $ 835,851 $ (72,238) $ 1,048,672 $ 988,373 $ (60,299) $ 1,154,642 $ 1,103,799 $ (50,843) $ 1,308,774 $ 1,274,005 $ (34,769) (A) Consumer loans are carried at fair value under the fair value option election. See Note 20 regarding fair value measurements. |
Schedule of Activities Related to the Carrying Value of Consumer Loans | The following table summarizes the activity for consumer loans for the period: Total Balance at December 31, 2023 $ 1,274,005 Purchases — Additional fundings (A) 4,113 Proceeds from repayments (154,354) Accretion of loan discount and premium amortization, net 10,152 Fair value adjustments due to: Changes in instrument-specific credit risk (22,961) Other factors (7,156) Balance at March 31, 2024 $ 1,103,799 (A) Represents draws on consumer loans with revolving privileges. |
SINGLE-FAMILY RENTAL PROPERTI_2
SINGLE-FAMILY RENTAL PROPERTIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Real Estate [Abstract] | |
Schedule of Net Carrying Value of Investments in SFR Properties | The following table summarizes the net carrying value of investments in SFR properties. March 31, 2024 December 31, 2023 Land $ 185,446 $ 183,359 Building 741,785 733,437 Capital improvements 141,288 138,869 Total gross investment in SFR properties 1,068,519 1,055,665 Accumulated depreciation (61,347) (53,737) Investment in SFR properties, net $ 1,007,172 $ 1,001,928 |
Schedule of Activity Related to the Net Carrying Value of Investments in SFR Properties and by Units | The following table summarizes the activity for the period related to the net carrying value of investments in SFR properties: SFR Properties HFI SFR Properties HFS Total Balance at December 31, 2023 $ 1,000,357 $ 1,571 $ 1,001,928 Acquisitions and capital improvements 15,249 — 15,249 Transfers to HFS (150) 150 — Dispositions (1,140) (1,123) (2,263) Accumulated depreciation (7,660) (82) (7,742) Balance at March 31, 2024 $ 1,006,656 $ 516 $ 1,007,172 The following table summarizes the activity for the period of the SFR portfolio by units: SFR Properties HFI SFR Properties HFS Total Balance at December 31, 2023 3,882 6 3,888 Acquisition of SFR units 48 — 48 Transfer to HFS (1) 1 — Disposition of SFR units (4) (4) (8) Balance at March 31, 2024 3,925 3 3,928 |
Schedule of Future Minimum Rental Revenues Under Existing Leases on SFR Properties | The following table summarizes the future minimum rental revenues under existing leases on SFR properties: Remainder of 2024 $ 36,521 2025 and thereafter 9,217 Total $ 45,738 |
MORTGAGE LOANS RECEIVABLE (AS_2
MORTGAGE LOANS RECEIVABLE (AS RESTATED) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Schedule of Mortgage Loans Receivable Outstanding by Loan Type and Activity for Mortgage Loans Receivable | The following table summarizes residential mortgage loans outstanding by loan type: March 31, 2024 (As Restated) December 31, 2023 (As Restated) Outstanding Face Amount Carrying Loan Weighted Average Yield Weighted Average Life (Years) (A) Carrying Value Investments of consolidated CFEs (E) $ 3,453,537 $ 3,257,446 9,397 5.6 % 26.8 $ 3,038,587 Residential mortgage loans, held-for-investment, at fair value $ 434,474 $ 365,398 8,070 8.1 % 5.2 $ 379,044 Acquired performing loans (B) 64,851 54,056 1,841 8.0 % 5.3 57,038 Acquired non-performing loans (C) 24,609 20,359 302 8.5 % 6.0 21,839 Total residential mortgage loans, HFS, at lower of cost or market $ 89,460 $ 74,415 2,143 8.1 % 5.5 $ 78,877 Acquired performing loans (B)(D) $ 542,335 $ 490,552 2,979 5.7 % 15.8 $ 400,603 Acquired non-performing loans (C)(D) 294,077 271,316 1,501 4.8 % 23.1 204,950 Originated loans 2,864,943 2,929,832 9,029 6.8 % 29.5 1,856,312 Total residential mortgage loans, HFS, at fair value $ 3,701,355 $ 3,691,700 13,509 6.5 % 27.0 $ 2,461,865 Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market $ 3,790,815 $ 3,766,115 15,652 $ 2,540,742 (A) For loans classified as Level 3 in the fair value hierarchy, the weighted average life is based on the expected timing of the receipt of cash flows. For Level 2 loans, the weighted average life is based on the contractual term of the loan. (B) Performing loans are generally placed on non-accrual status when principal or interest is 90 days or more past due. (C) As of March 31, 2024, Rithm Capital has placed non-performing loans, HFS on non-accrual status, except as described in (D) below. (D) Includes $228.6 million and $222.7 million UPB of Ginnie Mae early buyout options performing and non-performing loans, respectively, on accrual status as contractual cash flows are guaranteed by the FHA. (E) Residential mortgage loans of consolidated CFEs are classified as Level 2 in the fair value hierarchy and valued based on the fair value of the more observable financial liabilities under the CFE election. The following table summarizes Mortgage loans receivable, at fair value and mortgage loans receivable held by consolidated CFEs by loan type as of March 31, 2024, as restated: Mortgage Loans Receivable - Carrying Value (A) Mortgage Loans Receivable of Consolidated CFEs - Carrying Value (A) Total Carrying % of Portfolio Loan % of Portfolio Weighted Average Yield Weighted Average Original Life (Months) Weighted Average Committed Loan Balance to Value (B) Construction $ 882,159 $ 165,529 $ 1,047,688 43.9 % 365 26.1 % 10.9 % 16.8 73.4% / 62.3% Bridge 890,610 146,446 1,037,056 43.5 % 638 45.7 % 9.9 % 27.2 68.1% Renovation 270,144 29,856 300,000 12.6 % 394 28.2 % 10.3 % 12.6 81.2% / 68.4% $ 2,042,913 $ 341,831 $ 2,384,744 100.0 % 1,397 100.0 % 10.4 % 20.5 N/A (A) Mortgage loans receivable are carried at fair value under the fair value option election. Mortgage loans of consolidated CFEs are classified as Level 2, as their value is based on the fair value of the more observable financial liabilities of consolidated CFEs. Mortgage loans of consolidated CFEs are classified as Level 2, as their value is based on the fair value of the more observable financial liabilities of consolidated CFEs. See Note 20 regarding fair value measurements. (B) Weighted by commitment LTV for bridge loans, loan-to-cost and loan-to-after-repair-value for construction and renovation loans. The following table summarizes the activity for the period of Mortgage loans receivable, at fair value on the Consolidated Balance Sheets: Balance at December 31, 2023 (As Restated) $ 1,879,319 Initial loan advances 468,804 Construction holdbacks and draws 180,893 Paydowns and payoffs (423,269) Fair value adjustments 14,873 Purchased loans discount amortization 588 Transfer of loans to REO (840) Transfers from (to) assets of consolidated CFEs (77,455) Balance at March 31, 2024 (As Restated) $ 2,042,913 The following table summarizes the activity for the period for notes and loans receivable: Notes Receivable Loans Receivable Total Balance at December 31, 2023 $ 398,227 $ 31,323 $ 429,550 Fundings — — — Payment in Kind — 1,094 1,094 Proceeds from repayments (33,250) (4,420) (37,670) Fair value adjustments due to: Changes in instrument-specific credit risk — — — Other factors — — — Balance at March 31, 2024 $ 364,977 $ 27,997 $ 392,974 |
Schedule of Difference Between Aggregate UPB and Aggregate Carrying Value of Loans | March 31, 2024 December 31, 2023 Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB 90+ $ 382,646 $ 344,488 $ (38,158) $ 313,122 $ 281,556 $ (31,566) The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets: March 31, 2024 (As Restated) December 31, 2023 (As Restated) Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB Current $ 1,987,674 $ 2,003,046 $ 15,372 $ 1,838,935 $ 1,837,513 $ (1,422) 90+ 41,264 39,867 (1,397) 41,869 41,806 (63) The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of notes and loans receivable: March 31, 2024 December 31, 2023 Days Past Due UPB Carrying Value (A) Carrying Value Over (Under) UPB UPB Carrying Value (A) Carrying Value Over (Under) UPB Current $ 531,394 $ 392,974 $ (138,420) $ 565,786 $ 429,550 $ (136,236) 90+ — — — — — — (A) Notes and loans receivable are carried at fair value. See Note 20 regarding fair value measurements. |
Schedule of Geographic Distribution of the Underlying Mortgage Loans Receivable | The following table summarizes the geographic distribution of the loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets as of March 31, 2024, as restated: Percentage of Total State Concentration March 31, 2024 December 31, 2023 California 49.1 % 47.8 % Washington 7.0 % 7.9 % Florida 6.8 % 7.8 % New York 6.7 % 6.7 % Georgia 5.1 % 2.5 % Arizona 4.1 % 4.8 % Virginia 3.8 % 4.1 % Illinois 3.3 % 2.7 % Texas 2.6 % 2.7 % Colorado 2.3 % 3.1 % Other US 9.2 % 9.9 % 100.0 % 100.0 % |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (AS RESTATED) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Reconciliation of Cash, 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 amounts shown in the Consolidated Statements of Cash Flows: March 31, 2024 (As Restated) December 31, 2023 (As Restated) Cash and cash equivalents $ 1,136,437 $ 1,287,199 Restricted cash 382,939 378,048 Restricted cash of consolidated CFEs (A) 38,618 31,848 Total cash, cash equivalents and restricted cash $ 1,557,994 $ 1,697,095 (A) Presented within Investments, at fair value and other assets on the Consolidated Balance Sheets. |
Schedule of Reconciliation of Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on Rithm Capital’s Consolidated Balance Sheets to the total of the same amounts shown in the Consolidated Statements of Cash Flows: March 31, 2024 (As Restated) December 31, 2023 (As Restated) Cash and cash equivalents $ 1,136,437 $ 1,287,199 Restricted cash 382,939 378,048 Restricted cash of consolidated CFEs (A) 38,618 31,848 Total cash, cash equivalents and restricted cash $ 1,557,994 $ 1,697,095 (A) Presented within Investments, at fair value and other assets on the Consolidated Balance Sheets. The following table summarizes restricted cash balances by reporting segment: March 31, 2024 (As Restated) December 31, 2023 (As Restated) Investment Portfolio (A) $ 109,809 $ 150,432 Origination and Servicing 237,186 195,490 Mortgage Loans Receivable (A) 55,458 37,805 Asset Management (A) 19,104 26,169 Total restricted cash $ 421,557 $ 409,896 (A) Includes restricted cash related to consolidated CFEs presented within Investments, at fair value and other assets on the Consolidated Balance Sheets. |
OTHER ASSETS AND LIABILITIES _2
OTHER ASSETS AND LIABILITIES (AS RESTATED) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Income Assets And Liabilities [Abstract] | |
Schedule of Other Assets and Accrued Expenses and Other Liabilities | Other Assets and Accrued Expenses and Other Liabilities consist of the following: Other Assets Accrued Expenses March 31, 2024 December 31, 2023 (As Restated) March 31, 2024 December 31, 2023 (As Restated) Deferred tax asset 284,950 279,019 Accounts payable 117,827 165,144 Derivative and hedging assets (Note 18) 39,555 28,080 Accrued compensation and benefits 112,002 290,464 Due from related parties 22,147 32,319 Deferred tax liability 898,040 801,857 Equity investments (A) 201,624 173,882 Derivative liabilities (Note 18) 33,586 51,765 Excess MSRs, at fair value (Note 5) 255,111 271,150 Escheat payable 161,717 169,914 Goodwill (Note 16) (B) 131,857 131,857 Interest payable 149,332 166,620 Income and fees receivable 49,829 59,134 Lease liability (Note 18) 151,493 159,236 Intangible assets (Note 16) 368,967 387,920 Unearned income and fees 38,993 37,468 Loans receivable, at fair value (C) 27,997 31,323 Other liabilities 221,537 223,293 Margin receivable, net (D) 52,316 75,947 $ 1,884,527 $ 2,065,761 Notes receivable, at fair value (E) 364,977 398,227 Operating lease right-of-use assets (Note 17) 96,706 104,207 Other receivables 144,072 152,046 Prepaid expenses 65,463 62,513 Principal and interest receivable 196,667 168,517 Property and equipment 39,010 40,038 Real Estate Owned 29,447 15,507 Servicer advance investments, at fair value (Note 7) 374,511 376,881 Servicing fee receivables 145,052 156,777 Warrants, at fair value 18,073 16,599 Other assets 203,355 182,880 $ 3,111,686 $ 3,144,823 (A) Represents equity investments in (i) commercial redevelopment projects and (ii) operating companies providing services throughout the real estate industry, including investments in Covius Holding Inc., a provider of various technology-enabled services to the mortgage and real estate sectors, preferred stock of Valon, a residential mortgage servicing and technology company, and preferred stock of Covalto Ltd. (formerly known as Credijusto Ltd.), a financial services company and (iii) funds managed by Sculptor. (B) Includes goodwill derived from the acquisition of Newrez, Guardian, Genesis and Sculptor. (C) Represents loans made pursuant to a senior credit agreement and a senior subordinated credit agreement to an entity affiliated with funds managed by an affiliate of the Former Manager. The loans are accounted for under the fair value option. (D) 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. (E) Represents notes receivable secured by commercial properties. The notes are accounted for under the fair value option. |
Schedule of Activity Related to the Carrying Value of Investments in REO | The following table presents activity for the period related to the carrying value of investments in REO: Balance at December 31, 2023 $ 15,507 Purchases 5,763 Property received in satisfaction of loan 14,154 Sales (A) (6,254) Valuation (provision) reversal 277 Balance at March 31, 2024 $ 29,447 (A) Recognized when control of the property has transferred to the buyer. |
Schedule of Notes and Loans Receivable | The following table summarizes residential mortgage loans outstanding by loan type: March 31, 2024 (As Restated) December 31, 2023 (As Restated) Outstanding Face Amount Carrying Loan Weighted Average Yield Weighted Average Life (Years) (A) Carrying Value Investments of consolidated CFEs (E) $ 3,453,537 $ 3,257,446 9,397 5.6 % 26.8 $ 3,038,587 Residential mortgage loans, held-for-investment, at fair value $ 434,474 $ 365,398 8,070 8.1 % 5.2 $ 379,044 Acquired performing loans (B) 64,851 54,056 1,841 8.0 % 5.3 57,038 Acquired non-performing loans (C) 24,609 20,359 302 8.5 % 6.0 21,839 Total residential mortgage loans, HFS, at lower of cost or market $ 89,460 $ 74,415 2,143 8.1 % 5.5 $ 78,877 Acquired performing loans (B)(D) $ 542,335 $ 490,552 2,979 5.7 % 15.8 $ 400,603 Acquired non-performing loans (C)(D) 294,077 271,316 1,501 4.8 % 23.1 204,950 Originated loans 2,864,943 2,929,832 9,029 6.8 % 29.5 1,856,312 Total residential mortgage loans, HFS, at fair value $ 3,701,355 $ 3,691,700 13,509 6.5 % 27.0 $ 2,461,865 Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market $ 3,790,815 $ 3,766,115 15,652 $ 2,540,742 (A) For loans classified as Level 3 in the fair value hierarchy, the weighted average life is based on the expected timing of the receipt of cash flows. For Level 2 loans, the weighted average life is based on the contractual term of the loan. (B) Performing loans are generally placed on non-accrual status when principal or interest is 90 days or more past due. (C) As of March 31, 2024, Rithm Capital has placed non-performing loans, HFS on non-accrual status, except as described in (D) below. (D) Includes $228.6 million and $222.7 million UPB of Ginnie Mae early buyout options performing and non-performing loans, respectively, on accrual status as contractual cash flows are guaranteed by the FHA. (E) Residential mortgage loans of consolidated CFEs are classified as Level 2 in the fair value hierarchy and valued based on the fair value of the more observable financial liabilities under the CFE election. The following table summarizes Mortgage loans receivable, at fair value and mortgage loans receivable held by consolidated CFEs by loan type as of March 31, 2024, as restated: Mortgage Loans Receivable - Carrying Value (A) Mortgage Loans Receivable of Consolidated CFEs - Carrying Value (A) Total Carrying % of Portfolio Loan % of Portfolio Weighted Average Yield Weighted Average Original Life (Months) Weighted Average Committed Loan Balance to Value (B) Construction $ 882,159 $ 165,529 $ 1,047,688 43.9 % 365 26.1 % 10.9 % 16.8 73.4% / 62.3% Bridge 890,610 146,446 1,037,056 43.5 % 638 45.7 % 9.9 % 27.2 68.1% Renovation 270,144 29,856 300,000 12.6 % 394 28.2 % 10.3 % 12.6 81.2% / 68.4% $ 2,042,913 $ 341,831 $ 2,384,744 100.0 % 1,397 100.0 % 10.4 % 20.5 N/A (A) Mortgage loans receivable are carried at fair value under the fair value option election. Mortgage loans of consolidated CFEs are classified as Level 2, as their value is based on the fair value of the more observable financial liabilities of consolidated CFEs. Mortgage loans of consolidated CFEs are classified as Level 2, as their value is based on the fair value of the more observable financial liabilities of consolidated CFEs. See Note 20 regarding fair value measurements. (B) Weighted by commitment LTV for bridge loans, loan-to-cost and loan-to-after-repair-value for construction and renovation loans. The following table summarizes the activity for the period of Mortgage loans receivable, at fair value on the Consolidated Balance Sheets: Balance at December 31, 2023 (As Restated) $ 1,879,319 Initial loan advances 468,804 Construction holdbacks and draws 180,893 Paydowns and payoffs (423,269) Fair value adjustments 14,873 Purchased loans discount amortization 588 Transfer of loans to REO (840) Transfers from (to) assets of consolidated CFEs (77,455) Balance at March 31, 2024 (As Restated) $ 2,042,913 The following table summarizes the activity for the period for notes and loans receivable: Notes Receivable Loans Receivable Total Balance at December 31, 2023 $ 398,227 $ 31,323 $ 429,550 Fundings — — — Payment in Kind — 1,094 1,094 Proceeds from repayments (33,250) (4,420) (37,670) Fair value adjustments due to: Changes in instrument-specific credit risk — — — Other factors — — — Balance at March 31, 2024 $ 364,977 $ 27,997 $ 392,974 |
Schedule of Difference Between Aggregate UPB and Aggregate Carrying Value of Notes and Loans Receivable | March 31, 2024 December 31, 2023 Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB 90+ $ 382,646 $ 344,488 $ (38,158) $ 313,122 $ 281,556 $ (31,566) The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets: March 31, 2024 (As Restated) December 31, 2023 (As Restated) Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB Current $ 1,987,674 $ 2,003,046 $ 15,372 $ 1,838,935 $ 1,837,513 $ (1,422) 90+ 41,264 39,867 (1,397) 41,869 41,806 (63) The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of notes and loans receivable: March 31, 2024 December 31, 2023 Days Past Due UPB Carrying Value (A) Carrying Value Over (Under) UPB UPB Carrying Value (A) Carrying Value Over (Under) UPB Current $ 531,394 $ 392,974 $ (138,420) $ 565,786 $ 429,550 $ (136,236) 90+ — — — — — — (A) Notes and loans receivable are carried at fair value. See Note 20 regarding fair value measurements. |
EXPENSES, REALIZED AND UNREAL_2
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES), NET AND OTHER (AS RESTATED) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Revenues | Other Revenues consists of the following: Three Months Ended 2024 2023 Property and maintenance $ 32,380 $ 33,637 Rental 18,949 18,123 Other 7,019 6,384 Total other revenues $ 58,348 $ 58,144 |
Schedule of General and Administrative Expenses | General and Administrative expenses consists of the following: Three Months Ended 2024 (As Restated) 2023 (As Restated) Legal and professional $ 21,489 $ 12,755 Loan origination 15,435 11,757 Occupancy 17,048 18,366 Subservicing 19,428 35,256 Loan servicing 5,591 3,300 Property and maintenance 32,264 24,035 Information technology 41,202 34,968 Other 44,737 27,042 Total general and administrative expenses $ 197,194 $ 167,479 |
Schedule of Components of Other Income (Loss) | The following table summarizes the components of other income (loss): Three Months Ended 2024 (As Restated) 2023 (As Restated) Real estate and other securities $ (102,963) $ 83,851 Residential mortgage loans and REO 3,526 18,097 Derivative and hedging instruments 41,932 (151,006) Notes and bonds payable 226 (2,500) Consolidated CFEs (A) 16,412 12,244 Other (B) (3,979) (26,591) Realized and unrealized gains (losses), net $ (44,846) $ (65,905) Other income (loss), net 7,926 (25,166) Total other income (loss) $ (36,920) $ (91,071) (A) Includes change in the fair value of the consolidated CFEs’ financial assets and liabilities and related interest and other income. (B) Includes excess MSRs, servicer advance investments, consumer loans and other. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Value of Goodwill by Reportable Segment | The following table summarizes the carrying value of goodwill by reportable segment: Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Total Balance at December 31, 2023 $ 24,376 $ 5,092 $ 55,731 $ 46,658 $ 131,857 Goodwill acquired — — — — — Accumulated impairment loss — — — — — Balance at March 31, 2024 $ 24,376 $ 5,092 $ 55,731 $ 46,658 $ 131,857 |
Schedule of Acquired Identifiable Intangible Assets | The following table summarizes the acquired identifiable intangible assets: Estimated Useful Lives (Years) March 31, 2024 December 31, 2023 Gross Intangible Assets Management contracts 10 $ 275,000 $ 275,000 Customer relationships 3 to 9 57,949 57,949 Purchased technology 3 to 5 137,922 137,922 Trademarks / Trade names 1 to 5 10,259 10,259 $ 481,130 $ 481,130 Accumulated Amortization (A) Management contracts $ 10,240 $ 3,388 Customer relationships 27,424 17,834 Purchased technology 69,361 67,145 Trademarks / Trade names 5,138 4,843 $ 112,163 $ 93,210 Intangible Assets, Net Management contracts $ 264,760 $ 271,612 Customer relationships 30,525 40,115 Purchased technology (B) 68,561 70,777 Trademarks / Trade names (C) 5,121 5,416 $ 368,967 $ 387,920 (A) Amortization expense is presented within general and administrative expense on Rithm Capital’s Consolidated Statements of Operations. (B) Includes indefinite-lived intangible assets of $21.4 million and $21.4 million, respectively. (C) Includes indefinite-lived intangible assets of $1.9 million and $1.9 million, respectively. |
Schedule of Expected Future Amortization Expense for Acquired Intangible Assets | The following table summarizes the expected future amortization expense for acquired intangible assets as of March 31, 2024: Year Ending Amortization Expense April 1 through December 31, 2024 $ 57,294 2025 44,165 2026 37,657 2027 33,806 2028 32,305 2029 and thereafter 140,499 $ 345,726 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Future Commitments for Non-Cancelable Operating Leases | The table below summarizes the future commitments under the non-cancelable leases: Year Ending Operating Leases Finance Leases Total April 1 through December 31, 2024 $ 31,076 $ — $ 31,076 2025 33,465 228 33,693 2026 26,992 228 27,220 2027 27,109 228 27,337 2028 23,818 — 23,818 2029 and thereafter 37,271 — 37,271 Total remaining undiscounted lease payments 179,731 684 180,415 Less: imputed interest 28,834 88 28,922 Total remaining discounted lease payments $ 150,897 $ 596 $ 151,493 |
Schedule of Future Commitments for Non-Cancelable Finance Leases | The table below summarizes the future commitments under the non-cancelable leases: Year Ending Operating Leases Finance Leases Total April 1 through December 31, 2024 $ 31,076 $ — $ 31,076 2025 33,465 228 33,693 2026 26,992 228 27,220 2027 27,109 228 27,337 2028 23,818 — 23,818 2029 and thereafter 37,271 — 37,271 Total remaining undiscounted lease payments 179,731 684 180,415 Less: imputed interest 28,834 88 28,922 Total remaining discounted lease payments $ 150,897 $ 596 $ 151,493 |
Schedule of Other Information Related to Leases and Supplemental Information | Other information related to leases is summarized below: March 31, 2024 December 31, 2023 Weighted average remaining lease term (years) Operating leases 5.7 5.8 Finance leases 3.3 3.5 Weighted average discount rate Operating leases 6.2 % 6.2 % Finance leases 7.9 % 7.9 % Three Months Ended Supplemental Information 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 11,411 $ 8,276 Operating cash flows - finance leases 4 — Finance cash flows - finance leases 224 — Supplemental non-cash information on lease liabilities arising from obtaining ROU assets: ROU assets obtained in exchange for new operating lease liabilities 126 — |
DERIVATIVES AND HEDGING (AS R_2
DERIVATIVES AND HEDGING (AS RESTATED) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives and Hedges are Recorded at Fair Value and Notional Amounts and Gain (Loss) on Derivatives and Hedging | Derivatives and economic hedges are recorded at fair value and presented in Other assets or Accrued expenses and Other liabilities on the Consolidated Balance Sheets, as follows: March 31, 2024 December 31, 2023 Derivative and hedging assets Interest rate swaps (A) $ — $ 106 IRLCs 32,063 26,482 TBAs 7,492 1,492 $ 39,555 $ 28,080 Derivative and hedging liabilities IRLCs 835 2,678 TBAs 15,654 49,087 Other commitments (B) 17,097 — $ 33,586 $ 51,765 (A) Net of $0.5 million and $342.0 million of related variation margin accounts as of March 31, 2024 and December 31, 2023, respectively. (B) During the quarter, a subsidiary of the Company entered into an agreement with an affiliate, which could result in the subsidiary being required to make a payment under certain circumstances dependent upon amounts realized from an investment of the affiliate, subject to a maximum amount of $25.5 million. The agreement is classified as a derivative liability and measured at fair value. The following table summarizes notional amounts related to derivatives and hedging: March 31, 2024 December 31, 2023 Interest rate swaps (A) $ 700,000 $ 7,979,988 IRLCs 3,734,933 2,757,060 TBAs, short position (B) 7,918,900 6,013,100 Other commitments 23,021 — (A) Includes $700.0 million notional of receive Secured Overnight Financing Rate (“SOFR”)/pay fixed of 4.6% and $0.0 million notional of receive fixed of 0.0%/pay SOFR with weighted average maturities of 32 months and 0 months, respectively, as of March 31, 2024. Includes $8.0 billion notional of receive SOFR/pay fixed of 2.5% and $0.0 billion notional of receive fixed of 0.0%/pay SOFR with weighted average maturities of 32 months and 0 months, respectively, as of December 31, 2023. (B) Represents the notional amount of Agency RMBS, classified as derivatives. The following table summarizes gain (loss) on derivatives and hedging and the related location on the Consolidated Statements of Operations: Three Months Ended 2024 2023 Gain on originated residential mortgage loans, HFS, net (A) IRLCs $ 7,485 $ 26,240 TBAs 37,910 (57,983) Interest rate swaps — (1,247) $ 45,395 $ (32,990) Realized and unrealized gains (losses), net (B) Interest rate swaps 29,161 (143,625) TBAs 1,523 (7,381) Treasury securities payable (C) 28,345 — Other commitments (17,097) — $ 41,932 $ (151,006) Total gain (loss) $ 87,327 $ (183,996) (A) Represents unrealized gain (loss). (B) Excludes $15.5 million loss and $9.9 million gain for the three months ended March 31, 2024 and 2023, respectively, included within Gain on originated residential mortgage loans, HFS, net (Note 9). (C) Refer to the table below for detail regarding Treasury securities payable: As of and for the Three Months Ended March 31, 2024 Face Sale proceeds Fair value Unrealized gain (loss) position Realized & unrealized gain (loss) (A) Reverse repurchase agreements (B) Net asset (liability) (C) Treasury short sale liabilities (D) $ 1,485,000 1,484,652 $ 1,487,320 $ (2,668) $ 23,997 $ 1,492,268 $ 4,948 Covered treasury short sale liabilities (E) 1,500,000 N/A 1,505,157 N/A 4,348 1,548,488 43,331 Total Treasury securities payable $ 2,985,000 $ 2,992,477 $ 28,345 $ 3,040,756 $ 48,279 (A) Includes net interest income (expense) on treasuries payable and associated reverse repurchase agreements. (B) Reverse repurchase agreements are lending facilities used to borrow securities to effectuate short sales of U.S. Treasury securities. (C) Represents the net carrying value of the position, excluding accrued interest receivable (payable). (D) Treasury short sale liabilities are moved to Covered treasury short sale liabilities after realized gain (loss) is recognized at purchase to cover. (E) Face and fair value of liability is equal to face and fair value of treasuries presented as part of Real estate and other securities on the Consolidated Balance Sheets. |
DEBT OBLIGATIONS (AS RESTATED)
DEBT OBLIGATIONS (AS RESTATED) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | March 31, 2024 (As Restated) December 31, 2023 (As Restated) Collateral Debt Obligations /Collateral (C) Outstanding Face Amount Carrying Value (A) Final Stated Maturity (B) Weighted Average Funding Cost Weighted Average Life (Years) Outstanding Face Amortized Cost Basis Carrying Value Weighted Average Life (Years) Carrying Value (A) Secured Financing Agreements Warehouse Credit Facilities-Residential Mortgage Loans (D) $ 3,087,260 $ 3,087,196 Apr-24 to Feb-26 6.9 % 0.7 $ 3,514,478 $ 3,522,074 $ 3,438,132 28.8 $ 1,940,038 Warehouse Credit Facilities-Mortgage Loans Receivable (E) 1,457,135 1,457,135 May-24 to Dec-25 8.1 % 1.5 1,749,029 1,761,010 1,761,010 1.2 1,337,010 Agency RMBS or US Treasuries (F) 12,557,569 12,557,569 Apr-24 to May-25 5.4 % 0.4 12,962,940 12,773,350 12,817,767 6.8 8,152,469 Non-Agency RMBS (E) 645,381 645,381 Apr-24 to Oct-28 7.4 % 0.6 15,812,493 974,002 1,002,578 7.0 610,189 SFR Properties (E) 27,914 27,914 Dec-24 8.2 % 0.7 N/A 60,054 60,054 N/A 20,534 CLOs (G) 179,858 178,527 Jan-30 to Jul-35 6.3 % 8.7 180,890 180,890 178,475 8.7 183,947 Commercial Notes Receivable 323,452 317,324 Dec-24 6.5 % 0.7 429,240 364,977 364,977 N/A 317,096 Total Secured Financing Agreements $ 18,278,569 $ 18,271,046 6.0 % 0.6 $ 12,561,283 Secured Notes and Bonds Payable Excess MSRs (E) 169,603 169,603 Oct-25 8.8 % 1.4 58,577,476 226,825 261,420 5.8 181,522 MSRs (H) 4,458,873 4,452,608 Dec-24 to Nov-27 7.4 % 1.7 521,148,213 6,480,406 8,657,165 7.6 4,800,728 Servicer Advance Investments (I) 270,705 270,705 Jul-24 to Mar-26 7.3 % 1.9 313,271 352,275 374,511 8.4 278,042 Servicer Advances (I) 2,154,019 2,153,983 May-24 to Mar-26 7.2 % 1.8 2,648,186 2,586,079 2,586,079 0.7 2,254,369 Residential Mortgage Loans (J) 650,000 650,000 May-24 6.8 % 0.1 648,077 665,862 669,238 6.7 650,000 Consumer Loans (K) 971,627 943,821 Jun-28 to Sep 37 6.8 % 4.1 1,154,642 1,123,851 1,103,799 1.8 1,106,974 SFR Properties (L) 832,972 791,612 Mar-26 to Sep-27 4.1 % 3.1 N/A 946,603 946,603 N/A 789,174 Mortgage Loans Receivable (M) 200,000 200,000 Jul-26 5.8 % 2.3 224,165 224,165 225,790 0.6 200,000 Secured Facility- Asset Management 75,000 69,652 Nov-25 8.8 % 1.6 N/A N/A N/A N/A 69,121 CLOs (G) 19,364 19,331 May-30 to Oct-34 6.8 % 7.3 23,013 19,541 22,099 7.3 30,258 Total Secured Notes and Bonds Payable $ 9,802,163 $ 9,721,315 6.9 % 2.0 $ 10,360,188 Notes Payable of Consolidated CFEs (N) : Consolidated funds (O) $ 222,250 $ 218,123 May-37 5.0 % 4.6 206,141 N/A 204,248 N/A 218,157 Residential Mortgage Loans $ 3,015,722 2,800,532 Mar-64 4.2 % 26.8 3,453,537 N/A 3,257,446 26.8 2,618,082 Mortgage Loans Receivable $ 324,062 324,062 Dec-26 5.6 % 2.7 342,780 342,780 341,831 0.6 318,998 Total Notes Payable of Consolidated CFEs $ 3,562,034 $ 3,342,717 4.4 % 23.2 $ 3,155,237 Total / Weighted Average $ 31,642,766 $ 31,335,078 6.1 % 3.6 $ 26,076,708 (A) Net of deferred financing costs. (B) Debt obligations with a stated maturity through the date of issuance were refinanced, extended or repaid. (C) Associated with accrued interest payable of approximately $134.3 million as of March 31, 2024. (D) Includes $224.7 million with an average fixed-rate of 5.0% with the remaining based on SOFR interest rates. (E) SOFR-based floating interest rates. Includes repurchase agreements and related collateral on non-agency securities retained through consolidated securitizations (F) Repurchase agreements have a fixed-rate. Includes financing on and collateral for US Treasuries purchased to cover short sales. Collateral carrying value includes margin deposits. (G) Repurchase agreements and loans based on SOFR- or Euro Interbank Offered Rate (EURIBOR) floating interest rate. (H) Includes $3.5 billion of MSR notes with an interest equal to the sum of (i) a floating rate index equal to SOFR, and (ii) a margin ranging from 2.5% to 3.7%; and $1.0 billion of MSR notes with fixed interest rates ranging 3.0% to 5.4%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the MSRs and MSR financing receivables securing these notes. (I) Includes debt with an interest rate equal to the sum of (i) a floating rate index equal to SOFR, and (ii) a margin ranging from 1.5% to 3.7%. Collateral includes servicer advance investments, as well as servicer advances receivable related to the MSRs and MSR financing receivables owned by NRM and Newrez. (J) Represents $650.0 million securitization backed by a revolving warehouse facility to finance newly originated first-lien, fixed- and adjustable-rate residential mortgage loans with an interest rate equal to SOFR plus a margin of 1.2%. Collateral carrying value includes cash held in the securitization trust required to meet collateral requirements. (K) Includes (i) SpringCastle debt, which is primarily composed of the following classes of asset-backed notes held by third parties: $191.7 million UPB of Class A notes with a coupon of 2.0% and $53.0 million UPB of Class B notes with a coupon of 2.7% and (ii) $721.9 billion of debt collateralized by the Marcus loans with an interest rate of SOFR plus a margin of 3.0%. (L) Includes $833.0 million of fixed-rate notes with an interest rate ranging from 3.5% to 7.1%. (M) Includes $238.1 million with an interest rate at an average fixed-rate of 4.6% with the remaining having SOFR-based floating interest rates. (N) See Note 21 for balance sheets of consolidated entities. (O) Includes $120.0 million UPB of Class A notes with a fixed coupon of 4.3% , $70.0 million UPB of Class B notes with a fixed coupon of 6.0% , $15.0 million UPB of Class C notes with a fixed coupon of 6.8% , and $17.3 million UPB of Subordinated notes, held within consolidated funds (Note 21 ). Weighted average life is based on expected maturity. The following table summarizes activities related to the carrying value of debt obligations: Servicer Advances and Excess MSRs (A) MSRs Commercial Notes Receivable Real Estate and Other Securities Residential Mortgage Loans and REO Consumer Loans SFR Properties Mortgage Loans Receivable Asset Management Total Balance at December 31, 2023 (As Restated) $ 2,713,933 $ 4,800,728 $ 317,096 $ 8,762,658 $ 5,208,120 $ 1,106,974 $ 809,708 $ 1,856,008 $ 501,483 $ 26,076,708 Secured Financing Agreements Borrowings — — — 22,495,882 11,289,428 — 7,380 750,500 — 34,543,190 Repayments — — — (18,055,590) (10,142,463) — — (630,375) (1,579) (28,830,007) FX remeasurement — — — — — — — — (3,877) (3,877) Capitalized deferred financing costs, net of amortization — — 228 — 193 — — — 36 457 Secured Notes and Bonds Payable Borrowings 558,186 200,000 — — — — — — 3,080 761,266 Repayments (678,740) (548,902) — — — (163,039) (420) — (14,096) (1,405,197) FX remeasurement — — — — — — — — (48) (48) Unrealized (gain) loss on notes, fair value — — — — — (411) — — — (411) Capitalized deferred financing costs, net of amortization 912 782 — — — 297 2,858 — 668 5,517 Notes Payable of Consolidated CFEs Acquired borrowing, net of discount — — — — — — — — — — Borrowings — — — — 241,333 — — — — 241,333 Repayments — — — — (75,214) — — — — (75,214) Discount on borrowings, net of amortization — — — — 1,251 — — — — 1,251 Unrealized (gain) loss on notes, fair value — — — — 15,080 — — 5,064 (34) 20,110 Balance at March 31, 2024 (As Restated) $ 2,594,291 $ 4,452,608 $ 317,324 $ 13,202,950 $ 6,537,728 $ 943,821 $ 819,526 $ 1,981,197 $ 485,633 $ 31,335,078 (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 March 31, 2024 are as follows, as restated: Year Ending Nonrecourse (A) Recourse (B) Total April 1 through December 31, 2024 $ 1,720,835 $ 17,491,706 $ 19,212,541 2025 258,952 2,845,222 3,104,174 2026 2,355,033 1,407,583 3,762,616 2027 734,614 420,000 1,154,614 2028 846,839 — 846,839 2029 and thereafter 3,561,982 1,050,000 4,611,982 $ 9,478,255 $ 23,214,511 $ 32,692,766 (A) Includes secured financing agreements, secured notes and bonds payable, unsecured notes net of issuance costs and notes payable of consolidated CFEs of $1.0 billion, $5.0 billion, $0.2 billion and $3.3 billion, respectively. (B) Includes secured financing agreements, secured notes and bonds payable, unsecured notes net of issuance costs and notes payable of consolidated CFEs of $17.3 billion, $5.3 billion, $0.6 billion and $0.0 billion, respectively. |
Schedule of Borrowing Capacity | The following table represents borrowing capacity as of March 31, 2024: Debt Obligations / Collateral Borrowing Capacity Balance Outstanding Available Financing (A) Secured Financing Agreements Residential mortgage loans, mortgage loans receivable, SFR and commercial notes receivable $ 6,367,565 $ 2,430,849 $ 3,936,716 Loan originations 5,227,000 2,464,912 2,762,088 CLOs 315,790 179,858 135,932 Secured Notes and Bonds Payable Excess MSRs 286,380 169,603 116,778 MSRs 5,938,911 4,458,873 1,480,038 Servicer advances 3,805,000 2,424,724 1,380,276 SFR 296,639 194,997 101,642 Liabilities of Consolidated CFEs Consolidated funds 52,500 — 52,500 $ 22,289,785 $ 12,323,816 $ 9,965,970 (A) |
Schedule of Debt Redemption | The notes become redeemable at any time and from time to time, on or after April 1, 2026, at a price equal to the following fixed redemption prices (expressed as a percentage of principal amount of the 2029 Senior Notes to be redeemed): Year Price 2026 104.000 % 2027 102.000 % 2028 and thereafter 100.000 % |
Schedule of Maximum Undiscounted Amounts | The table below presents the Company’s estimate as of March 31, 2024, of the maximum undiscounted amounts that would be payable under the TRA using the assumptions described above. In light of the numerous factors affecting Sculptor’s obligation to make such payments, the timing and amounts of any such actual payments may differ materially from those presented in the table. Year Ending Potential Payments Under TRA April 1 through December 31, 2024 $ 11,591 2025 29,819 2026 17,374 2027 18,994 2028 15,940 2029 and thereafter 174,203 $ 267,921 |
FAIR VALUE MEASUREMENTS (AS R_2
FAIR VALUE MEASUREMENTS (AS RESTATED) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 were as follows, as restated: Principal Balance or Notional Amount Carrying Value Fair Value Level 1 Level 2 Level 3 Net Asset Value (“NAV”) Total Assets Excess MSRs (A) $ 58,577,476 $ 255,111 $ — $ — $ 255,111 $ — $ 255,111 MSRs and MSR financing receivables (A) 526,673,826 8,706,723 — — 8,706,723 — 8,706,723 Servicer advance investments 313,271 374,511 — — 374,511 — 374,511 Real estate and other securities (B) 24,017,832 14,857,286 4,497,542 9,566,210 793,535 — 14,857,287 Residential mortgage loans, HFS 89,460 74,415 — — 74,415 — 74,415 Residential mortgage loans, HFS, at fair value 3,701,355 3,691,700 — 3,353,549 338,151 — 3,691,700 Residential mortgage loans, HFI, at fair value 434,474 365,398 — — 365,398 — 365,398 Residential mortgage loans subject to repurchase 1,845,889 1,845,889 — 1,845,889 — — 1,845,889 Consumer loans 1,154,642 1,103,799 — — 1,103,799 — 1,103,799 Derivative and hedging assets 7,493,928 102,227 62,672 7,492 32,063 — 102,227 Mortgage loans receivable 2,028,938 2,042,913 — — 2,042,913 — 2,042,913 Notes receivable 503,397 364,977 — — 364,977 — 364,977 Loans receivable 27,997 27,997 — — 27,997 — 27,997 Cash, cash equivalents and restricted cash 1,530,983 1,530,983 1,530,983 — — — 1,530,983 Reverse repurchase agreements 3,040,756 3,040,756 — 3,040,756 — — 3,040,756 Assets of consolidated CFEs - funds (E) 324,631 350,043 11,705 — — 338,337 350,042 Assets of consolidated CFEs - loan securitizations (E) 3,795,368 3,632,016 32,739 3,257,446 341,831 — 3,632,016 Other assets N/A 62,810 — — 62,810 — 62,810 $ 42,429,554 $ 6,135,641 $ 21,071,342 $ 14,884,234 $ 338,337 $ 42,429,554 Liabilities Secured financing agreements $ 18,278,569 $ 18,271,046 $ — $ 18,090,307 $ 180,739 $ — $ 18,271,046 Secured notes and bonds payable (C) 9,802,163 9,721,315 — — 10,060,762 — 10,060,762 Unsecured notes, net of issuance costs 1,298,492 1,205,411 — — 1,202,005 — 1,202,005 Residential mortgage loan repurchase liability 1,845,889 1,845,889 — 1,845,889 — — 1,845,889 Payable for investments purchased (D) 1,271,542 1,271,542 1,271,542 — — — 1,271,542 Treasury securities payable 2,985,000 2,992,477 2,992,477 — — — 2,992,477 Derivative liabilities 4,882,926 33,586 — 15,654 17,932 — 33,586 Liabilities of consolidated CFEs - funds (E) 222,250 223,188 5,065 — 218,123 — 223,188 Liabilities of consolidated CFEs - loan securitizations (E) 3,339,784 3,141,121 16,527 2,800,532 324,062 — 3,141,121 $ 38,705,575 $ 4,285,611 $ 22,752,382 $ 12,003,623 $ — $ 39,041,616 (A) The notional amount represents the total UPB 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 US Treasury Bills classified as Level 1 and held at amortized cost basis of $24.9 million (see Note 8). Carrying value equals fair value for all other securities. (C) Includes SCFT 2020-A (as defined below) MBS issued for which the fair value option for financial instruments was elected and resulted in a fair value of $221.9 million as of March 31, 2024. (D) Represents the cost of Agency and Non-Agency securities purchased and not settled as of the reporting date. The purchases settled prior to issuance. (E) |
Schedule of Changes in the Company’s Level 3 Inputs Financial Assets | The following table summarizes the changes in the Company’s Level 3 inputs financial assets for the period presented: Level 3 Excess MSRs (A)( B ) MSRs and MSR Financing Receivables (A) Servicer Advance Investments Non-Agency Securities Derivatives (C) Residential Mortgage Loans Consumer Loans Notes and Loans Receivable Mortgage Loans Receivable (D) Total Balance at December 31, 2023 (As Restated) $ 271,150 $ 8,405,938 $ 376,881 $ 804,029 $ 23,804 $ 513,381 $ 1,274,005 $ 429,550 $ 2,232,913 $ 14,331,651 Transfers Transfers from Level 3 — — — — — — — — — — Transfers to Level 3 — — — — — 106 — — — 106 Gain (loss) included in net income Credit losses on securities (E) — — — (662) — — — — — (662) Servicing revenue, net (F) Included in servicing revenue (F) — 84,175 — — — — — — — 84,175 Change in fair value of Excess MSRs (E) (1,867) — — — — — — — — (1,867) Excess MSRs, equity method investees (E) — — — — — — — — — — Servicer advance investments — — 8,115 — — — — — — 8,115 Consumer loans — — — — — — (30,117) — — (30,117) Residential mortgage loans — — — — — 5,596 — — — 5,596 Gain (loss) on settlement of investments, net — — — 36 — — — — — 36 Other income (loss), net (E) — — — 2,860 (9,612) 1,824 — — 14,873 9,945 Gains (losses) included in OCI (G) — — — 737 — — — — — 737 Interest income 2,446 — 7,315 8,496 — — 10,152 1,094 — 29,503 Purchases, sales and repayments Purchases, net (H) — — 212,656 17,579 — 216,405 4,113 — — 450,753 Proceeds from sales — 671 — — (17,766) — — — (17,095) Proceeds from repayments (16,618) $ — (230,456) (39,540) — (16,042) (154,354) (37,670) (505,091) (999,771) Originations and other — 215,939 — — (61) 45 — — 642,049 857,972 Balance at March 31, 2024 (As Restated) $ 255,111 $ 8,706,723 $ 374,511 $ 793,535 $ 14,131 $ 703,549 $ 1,103,799 $ 392,974 $ 2,384,744 $ 14,729,077 (A) Includes the recapture agreement for each respective pool, as applicable. (B) Amounts include Rithm Capital’s portion of the Excess MSRs held by the respective joint ventures in which Rithm Capital has a 50% interest. (C) For the purpose of this table, the IRLC asset and liability positions and other commitment derivatives are shown net. (D) Includes mortgage loans receivable of consolidated CFEs classified as level 3 in the fair hierarchy. (E) Gain (loss) recorded in earnings during the period is attributable to the change in unrealized gain (loss) relating to Level 3 assets still held at the reporting dates and realized gain (loss) recorded during the period. (F) See Note 6 for further details on the components of servicing revenue, net. (G) Gain (loss) included in unrealized gain (loss) on available-for-sale securities, net in the Consolidated Statements of Comprehensive Income. (H) Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection. |
Schedule of Changes in the Company’s Level 3 Financial Liabilities | The following table summarizes the changes in the Company’s Level 3 financial liabilities for the period presented, as restated: Level 3 Asset-Backed Securities Issued Notes Payable of Consolidated Funds Mortgage Loans Receivable Notes Payable of CFE Total Balance at December 31, 2023 $ 235,770 $ 218,157 $ 318,998 $ 772,925 Gains (losses) included in net income Other income (A) (411) (34) 5,064 4,619 Purchases, sales and repayments Proceeds from sales — — — — Payments (13,437) — — (13,437) Balance at March 31, 2024 $ 221,922 $ 218,123 $ 324,062 $ 764,107 (A) Gain (loss) recorded in earnings during the period is attributable to the change in unrealized gain (loss) relating to Level 3 financial liabilities still held at the reporting dates and realized gain (loss) recorded during the period. |
Schedule of Securities Valuation Methodology | The following table summarizes certain information regarding the ranges and weighted averages of inputs used as of March 31, 2024: Significant Inputs (A) Prepayment (B) Delinquency (C) Recapture (D) Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps) (E) Collateral Weighted Average Maturity (Years) (F) Excess MSRs Directly Held 2.5% – 12.0% (6.6%) 0.2% – 15.0% (6.2%) 0.0% – 91.3% (55.4%) 7 – 32 (20) 11 – 26 (20) Excess MSRs Held through Investees 7.4% – 10.1% (8.6%) 1.8% – 5.0% (3.2%) 45.4% – 64.1% (59.2%) 16 – 25 (21) 14 – 21 (18) MSRs and MSR Financing Receivables Agency 0.6% – 83.7% (6.4%) 0.1% – 100.0% (1.7%) — (G) 12 – 136 (27) 0 – 40 (22) Non-Agency 0.8% – 83.5% (7.7%) 0.8% – 80.0% (26.6%) — (G) 1 – 277 (46) 0 – 40 (20) Ginnie Mae 4.5% – 81.9% (9.1%) 0.1% – 71.4% (8.1%) — (G) 19 – 119 (44) 0 – 39 (27) Total/Weighted Average — MSRs and MSR Financing Receivables 0.6% – 83.7% (7.3%) 0.1% – 100.0% (5.5%) — (G) 1 – 277 (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 is expected to miss a mortgage payment. (D) Percentage of voluntarily prepaid loans that are expected to be refinanced by the related servicer or subservicer, as applicable. (E) Weighted average total mortgage servicing amount, in excess of the basic fee as applicable, measured in basis points (“bps”). As of March 31, 2024, weighted average costs of subservicing of $6.91 – $7.09 ($6.95) per loan per month was used to value the agency MSRs. Weighted average costs of subservicing of $7.54 – $9.55 ($9.17) per loan per month was used to value the non-agency MSRs, including MSR financing receivables. Weighted average cost of subservicing of $8.37 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) Recapture is not considered a significant input for MSRs and MSR financing receivables. The following table summarizes the estimated change in fair value of Rithm Capital’s interests in the Agency MSRs, owned as of March 31, 2024, given several parallel shifts in the discount rate, prepayment rate and delinquency rate: Fair value at March 31, 2024 $ 5,477,522 Discount rate shift in % -20% -10% 10% 20% Estimated fair value $ 5,916,038 $ 5,688,536 $ 5,281,385 $ 5,098,703 Change in estimated fair value: Amount $ 438,516 $ 211,014 $ (196,137) $ (378,819) Percentage 8.0 % 3.9 % (3.6) % (6.9) % Prepayment rate shift in % -20% -10% 10% 20% Estimated fair value $ 5,712,739 $ 5,589,924 $ 5,374,997 $ 5,279,423 Change in estimated fair value: Amount $ 235,217 $ 112,402 $ (102,525) $ (198,099) Percentage 4.3 % 2.1 % (1.9) % (3.6) % Delinquency rate shift in % -20% -10% 10% 20% Estimated fair value $ 5,564,061 $ 5,524,189 $ 5,424,447 $ 5,365,476 Change in estimated fair value: Amount $ 86,539 $ 46,667 $ (53,075) $ (112,046) Percentage 1.6 % 0.9 % (1.0) % (2.0) % The following table summarizes the estimated change in fair value of Rithm Capital’s interests in the Non-Agency MSRs, including MSR financing receivables, owned as of March 31, 2024, given several parallel shifts in the discount rate, prepayment rate and delinquency rate: Fair value at March 31, 2024 $ 666,958 Discount rate shift in % -20% -10% 10% 20% Estimated fair value $ 736,242 $ 700,014 $ 636,705 $ 608,936 Change in estimated fair value: Amount $ 69,284 $ 33,056 $ (30,253) $ (58,022) Percentage 10.4 % 5.0 % (4.5) % (8.7) % Prepayment rate shift in % -20% -10% 10% 20% Estimated fair value $ 705,048 $ 685,527 $ 649,291 $ 632,451 Change in estimated fair value: Amount $ 38,090 $ 18,569 $ (17,667) $ (34,507) Percentage 5.7 % 2.8 % (2.6) % (5.2) % Delinquency rate shift in % -20% -10% 10% 20% Estimated fair value $ 702,058 $ 685,264 $ 647,274 $ 626,531 Change in estimated fair value: Amount $ 35,100 $ 18,306 $ (19,684) $ (40,427) Percentage 5.3 % 2.7 % (3.0) % (6.1) % The following table summarizes the estimated change in fair value of Rithm Capital’s interests in the Ginnie Mae MSRs, owned as of March 31, 2024, given several parallel shifts in the discount rate, prepayment rate and delinquency rate: Fair value at March 31, 2024 $ 2,562,243 Discount rate shift in % -20% -10% 10% 20% Estimated fair value $ 2,767,898 $ 2,661,043 $ 2,470,671 $ 2,385,605 Change in estimated fair value: Amount $ 205,655 $ 98,800 $ (91,572) $ (176,638) Percentage 8.0 % 3.9 % (3.6) % (6.9) % Prepayment rate shift in % -20% -10% 10% 20% Estimated fair value $ 2,710,793 $ 2,632,485 $ 2,498,505 $ 2,439,407 Change in estimated fair value: Amount $ 148,550 $ 70,242 $ (63,738) $ (122,836) Percentage 5.8 % 2.7 % (2.5) % (4.8) % Delinquency rate shift in % -20% -10% 10% 20% Estimated fair value $ 2,739,713 $ 2,654,908 $ 2,463,189 $ 2,359,206 Change in estimated fair value: Amount $ 177,470 $ 92,665 $ (99,054) $ (203,037) Percentage 6.9 % 3.6 % (3.9) % (7.9) % Rithm Capital’s real estate and other securities valuation methodology and results are detailed below. Treasury securities are valued using market-based prices published by the US Department of the Treasury and are classified as Level 1. The table below is as of March 31, 2024, as restated. Fair Value Asset Type Outstanding Face Amount Amortized Cost Basis Multiple Quotes (A) Single Quote (B) Total Level Agency $ 9,751,506 $ 9,549,450 $ 9,566,210 $ — $ 9,566,210 2 Non-Agency 9,741,326 765,827 581,539 211,996 793,535 3 Total $ 19,492,832 $ 10,315,277 $ 10,147,749 $ 211,996 $ 10,359,745 (A) Rithm Capital generally obtains pricing service quotations or broker quotations from two sources. Rithm Capital evaluates quotes received, determines one as being most representative of fair value and does not use an average of the quotes. Even if Rithm Capital receives two or more quotes on a particular security that come from non-selling brokers or pricing services, it does not use an average because it believes using an actual quote more closely represents a transactable price for the security than an average level. Furthermore, in some cases, for Non-Agency securities, 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 most accurately reflect fair value. Rithm Capital has not adjusted any of the quotes received in the periods presented. These quotations are generally received via email and contain disclaimers which state that they are “indicative” and not “actionable” — meaning that the party giving the quotation is not bound to purchase the security at the quoted price. Rithm Capital’s investments in Agency RMBS are classified within Level 2 of the fair value hierarchy because the market for these securities is 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 securities. 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 independent valuation group, which is separate from its investment acquisition and management group, to reflect market developments and actual performance. For 60.3% of Non-Agency securities, 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 securities were not readily available. Fair Value Discount Rate Prepayment Rate (a) CDR (b) Loss Severity (c) Non-Agency (As Restated) $ 478,826 0.0% – 12.6% (6.6%) 0.0% – 20.0% (11.7%) 0.0% – 2.0% (1.0%) 0.0% – 49.0% (18.7%) (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 of the loans in default. (B) Rithm Capital was unable to obtain quotations from more than one source on these securities. The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing residential mortgage loans HFS, at fair value classified as Level 3 as of March 31, 2024: Performing Loans Fair Value Discount Rate Prepayment Rate CDR Loss Severity Acquired loans $ 215,160 5.9% – 9.7% (6.4%) 2.3% – 9.1% (7.3%) 1.3% – 6.6% (2.7%) 6.9% – 55.4% (11.7%) Originated loans (A) 32,617 4.4% 8.9% 3.6% 20.7% Residential mortgage loans HFS, at fair value $ 247,777 Non-Performing Loans Fair Value Discount Rate Annual change in home prices CDR Current Value of Underlying Properties Acquired loans $ 62,848 4.8% – 10.0% (6.3%) 2.0%– 7.6% (3.8%) 1.3% – 4.3% (3.3%) 223.1% – 863.9% (243.7%) Originated loans (A) 5,786 4.4% N/A 3.6% N/A Residential mortgage loans HFS, at fair value $ 68,634 (A) Includes inputs for 66.9% and 50.8% of originated performing and non-performing loans, respectively, classified as Level 3. The remainder of performing and non-performing loans were priced using dealer price quotes and historical sale transactions for similar loans with a range of 50.9% - 100.0% (85.8%). The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing residential mortgage loans HFI, at fair value classified as Level 3 as of March 31, 2024: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Residential mortgage loans HFI, at fair value $ 365,398 7.9% – 9.8% (8.1%) 3.0% – 3.9% (3.6%) 1.3% – 6.6% (5.1%) 23.2% – 55.4% (43.4%) The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing consumer loans HFI, at fair value classified as Level 3 as of March 31, 2024: Fair Value Discount Rate Prepayment Rate CDR Loss Severity SpringCastle $ 267,948 8.4% – 9.4% (8.6%) 9.4% – 35.7% (15.5%) 1.7% – 7.3% (5.0%) 85.7% – 100.0% (93.6%) Marcus 835,851 7.8% 19.8% 11.3% 86.0% Consumer loans, HFI, at fair value $ 1,103,799 Fair Value Discount Rate Prepayment Rate CDR Loss Severity Acquired mortgage loans receivable $ 73,934 10.7% —% 1.8% – 2.5% (2.1%) 25.0% Originated mortgage loans receivable 1,968,979 9.6% N/A N/A N/A Mortgage loans receivable, at fair value $ 2,042,913 The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing IRLCs as of March 31, 2024: Fair Value Loan Funding Probability Fair Value of Initial Servicing Rights (Bps) IRLCs, net $ 31,228 0.4% – 100.0% (83.6%) 4.4 – 345.0 (239.7) The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing asset-backed securities issued as of March 31, 2024: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Asset-backed securities issued $ 221,922 5.8% 15.5% 5.0% 93.6% The following table summarizes certain information regarding the carrying value and significant inputs used in valuing Rithm Capital’s notes and loans receivable as of March 31, 2024: Fair Value Discount Rate Notes receivable $ 364,977 N/A Loans receivable 27,997 12.7 % Total $ 392,974 |
Schedule Of Loan Securitizations | Loan securitizations (As Restated) Investments at fair value Notes payable at fair value Residential mortgage loans $ 3,257,446 2,800,532 Rithm Capital classifies securitized mortgage loans receivable as Level 3 in the fair value hierarchy because the notes payable are valued based significantly on unobservable inputs. The valuation methodology is in line with non-agency securities described above. The following table summarizes the inputs used in valuing the notes payable: Loan securitizations (As Restated) Investments at Notes Payable at Fair Value Spread Prepayment Rate (A) CDR (B) Loss Severity (C) Mortgage loans receivable $ 341,831 $ 324,062 2.3% - 6.6% (2.6%) 50.0% 3.0% 15.0% |
Schedule of Servicer Advance Investments Valuation | The following table summarizes the inputs used in valuing these residential mortgage loans as of March 31, 2024: Fair Value Discount Rate Weighted Average Life (Years) (A) Prepayment Rate CDR (B) Loss Severity (C) Performing loans $ 54,056 6.5% – 8.3% (8.0%) 4.8 – 6.8 (5.3) 2.3% – 6.2% (4.0%) 3.7% – 7.9% (4.4%) 30.2% – 55.4% (33.7%) Non-performing loans 20,359 5.9% – 10.0% (8.6%) 5.4 – 9.5 (6.0) 2.4% – 3.1% (2.8%) 1.3% – 9.1% (4.9%) 23.2% – 44.5% (32.0%) Total/weighted average $ 74,415 8.1% 5.5 3.7% 4.6% 33.2% (A) The weighted average life is based on the expected timing of the receipt of cash flows. (B) Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance. (C) |
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 Servicer Advances to UPB of Underlying Residential Mortgage Loans Prepayment Rate (A) Delinquency Mortgage Servicing Amount (B) Discount Rate Collateral Weighted Average Maturity (Years) (C) Servicer advance investments 1.2% – 2.4% (2.4%) 3.9% – 4.9% (4.8%) 6.6% – 20.0% (19.7%) 18.2 – 19.9 (19.8) bps 6.2% – 6.7% (6.2%) 20.9 – 21.6 (21.6) (A) Projected annual weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (B) Mortgage servicing amount is net of 2.2 bps which represents the amount Rithm Capital paid its servicers as a monthly servicing fee. (C) Weighted average maturity of the underlying residential mortgage loans in the pool. |
Schedule of Fair Value of the Investments by Fund Type and Ability to Redeem Investments | The following table summarizes the fair value of the investments by fund type and ability to redeem such investments as of March 31, 2024: Fund Type (A) Fair Value Redemption Frequency Redemption Notice Period Open-ended $ 241,058 Monthly - Annually (B) 30 days - 90 days (B) Close-ended 97,279 None (C) N/A Total $ 338,337 (A) The structured alternative investment solution invests in both open-ended and close-ended funds. The investments in each fund may represent investments in a particular tranche of such fund subject to different withdrawal rights. (B) $168.6 million of investments are subject to an initial lock-up period of three years during which time withdrawals or redemptions are limited. Once the lock-up period ends, the investments can be redeemed with the frequency noted above. (C) 100% of these investments cannot be redeemed, as distributions will be received as the underlying assets are liquidated, which is expected to be approximately 7 to 9 years from inception. |
VARIABLE INTEREST ENTITIES (A_2
VARIABLE INTEREST ENTITIES (AS RESTATED) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Carrying Value and Classification of the Assets and Liabilities of Consolidated VIEs and Non-Consolidated VIEs | The table below presents the restated carrying value and classification of the assets and liabilities of consolidated VIEs on the Consolidated Balance Sheets: Advance Purchaser Newrez Joint Ventures Residential Mortgage Loans Consumer Loan Companies Consolidated CFEs (B) Total Loan Securitizations - Mortgage Loans Receivable Loan Securitizations - Residential Mortgage Loans Consolidated Funds March 31, 2024 (As Restated) Assets Servicer advance investments, at fair value $ 364,843 $ — $ — — $ — $ — $ — $ 364,843 Residential mortgage loans, HFS, at fair value — — 1,177,451 — — — — 1,177,451 Consumer loans — — — 267,948 — — — 267,948 Assets of consolidated CFEs - investments — — — — 341,831 3,257,446 338,337 3,937,614 Cash and cash equivalents 5,532 18,000 — — — — — 23,532 Restricted cash 7,885 — 9,381 6,232 11,607 16,155 10,856 62,116 Other assets 9 631 — 4,051 4,888 89 850 10,518 Total Assets $ 378,269 $ 18,631 $ 1,186,832 $ 278,231 $ 358,326 $ 3,273,690 $ 350,043 5,844,022 Liabilities Secured financing agreements (A) — — 1,052,769 — — — — 1,052,769 Secured notes and bonds payable (A) 265,776 — — 221,922 — — — 487,698 Notes payable of consolidated CFEs (A) — — — — 324,062 2,800,532 218,123 3,342,717 Accrued expenses and other liabilities 2,505 2,366 6,128 1,587 371 16,156 5,065 34,178 Total Liabilities $ 268,281 $ 2,366 $ 1,058,897 $ 223,509 $ 324,433 $ 2,816,688 $ 223,188 $ 4,917,362 December 31, 2023 (As Restated) Assets Servicer advance investments, at fair value $ 367,803 $ — $ — $ — $ — $ — $ — $ 367,803 Residential mortgage loans, HFS, at fair value — — 1,112,097 — — — — 1,112,097 Consumer loans — — — 285,632 — — — 285,632 Assets of consolidated CFEs - investments — — — — 353,594 3,038,587 321,856 3,714,037 Cash and cash equivalents 5,381 18,159 — — — — — 23,540 Restricted cash 8,273 — 6,113 6,301 7,572 6,263 18,013 52,535 Other assets 9 688 — 4,325 4,532 — 1,060 10,614 Total Assets $ 381,466 $ 18,847 $ 1,118,210 $ 296,258 $ 365,698 $ 3,044,850 $ 340,929 $ 5,566,258 Liabilities Secured financing agreements (A) — — 996,845 — — — — 996,845 Secured notes and bonds payable (A) 274,404 — — 235,770 — — — 510,174 Notes payable of consolidated CFEs (A) — — — — 318,998 2,618,082 218,157 3,155,237 Accrued expenses and other liabilities 2,606 2,240 5,382 1,507 372 6,262 1,763 20,132 Total Liabilities $ 277,010 $ 2,240 $ 1,002,227 $ 237,277 $ 319,370 $ 2,624,344 $ 219,920 $ 4,682,388 (A) The creditors of the VIEs do not have recourse to the general credit of Rithm Capital Corp., and the assets of the VIEs are not directly available to satisfy Rithm Capital Corp’s obligations. (B) Reflects Assets of consolidated CFEs - Investments, at fair value and other assets and Liabilities of consolidated CFEs - Notes payable, at fair value and other liabilities on the Consolidated Balance Sheets. March 31, 2024 December 31, 2023 (As Restated) Residential mortgage loan UPB and other collateral $ 8,012,829 $ 8,237,692 Weighted average delinquency (A) 5.4% 5.3% Net credit losses $ 162,602 $ 162,061 Face amount of debt held by third parties $ 7,361,326 $ 7,596,408 Carrying value of bonds retained by Rithm Capital (B)(C) $ 554,438 $ 543,447 Year to date cash flows received by Rithm Capital on these bonds $ 21,320 $ 91,401 (A) Represents the percentage of the UPB that is 60+ days delinquent. (B) Includes real estate bonds retained pursuant to required risk retention regulations. (C) 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. The following table summarizes the Company’s involvement with VIEs related to the asset management business that are not consolidated. The Company’s involvement, through Sculptor, is generally limited to providing asset management services and, in certain cases, investments in the VIEs. The maximum exposure to loss represents the potential loss of current investments or income and fees receivables from these entities, as well as the obligation to repay unearned revenues, primarily incentive income subject to clawback, in the event of any future fund losses, as well as unfunded commitments to certain funds that are VIEs. The Company does not provide, nor is it required to provide, any type of non-contractual financial or other support to its VIEs that are not consolidated beyond its share of capital and other commitments described in Note 18. March 31, 2024 December 31, 2023 Net assets of unconsolidated VIEs in which the Company has a variable interest $ 12,613,891 $ 12,782,124 Maximum risk of loss as a result of the Company’s involvement with unconsolidated VIEs: Unearned income and fees 38,993 37,468 Income and fees receivable 37,873 43,250 Investments 527,231 533,026 Unfunded commitments (A) 182,846 207,575 Other commitments 23,021 — Maximum Exposure to Loss $ 809,964 $ 821,319 (A) Includes commitments from certain employees and executive managing directors in the amounts of $94.8 million and $97.5 million as of March 31, 2024 and December 31, 2023, respectively. The following table summarizes the carrying value of the Company’s unconsolidated commercial real estate projects which reflects the Company’s maximum exposure to loss. See Note 23 regarding certain guarantees provided in connection with the investments. These investments are presented as part of Equity investments within other assets on the Consolidated Balance Sheets: March 31, 2024 December 31, 2023 Carrying value of commercial real estate held within unconsolidated VIEs $ 96,186 $ 66,652 Carrying value of Rithm Capital’s investments in unconsolidated commercial real estate VIEs $ 34,846 $ 29,210 |
Schedule of Others’ Interests in the Equity of Consolidated Subsidiaries | Others’ interests in the equity of consolidated subsidiaries is computed as follows: March 31, 2024 December 31, 2023 Total Consolidated Equity Others' Ownership Interest Others' Interest in Equity of Consolidated Subsidiary Total Consolidated Equity Others' Ownership Interest Others' Interest in Equity of Consolidated Subsidiary Advance Purchaser $ 109,988 10.7 % $ 11,747 $ 104,458 10.7 % $ 11,157 Newrez Joint Ventures $ 16,265 49.5 % $ 8,051 $ 16,607 49.5 % $ 8,220 Consumer Loan Companies $ 68,126 46.5 % $ 31,679 $ 72,361 46.5 % $ 33,748 Others’ interests in the net income (loss) is computed as follows: Three Months Ended March 31, 2024 2023 Net income (loss) Others’ ownership interest as a percent of total Others’ interest in net income (loss) of consolidated subsidiaries Net income (loss) Others’ ownership interest as a percent of total Others’ interest in net income (loss) of consolidated subsidiaries Advance Purchaser $ 9,530 10.7 % $ 1,018 $ (1,370) 10.7 % $ (146) Newrez Joint Ventures $ 112 49.5 % $ 55 $ (85) 49.5 % $ (42) Consumer Loan Companies $ 2,192 46.5 % $ 1,019 $ (2,391) 46.5 % $ (1,112) |
EQUITY AND EARNINGS PER SHARE (
EQUITY AND EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Preferred Shares | The table below summarizes preferred shares: Dividends Declared per Share Number of Shares Three Months Ended Series March 31, 2024 December 31, 2023 Liquidation Preference (A) Issuance Discount Carrying Value (B) 2024 2023 Series A, 7.50% issued July 2019 (C) 6,200 6,200 $ 155,002 3.15 % $ 149,822 $ 0.47 $ 0.47 Series B, 7.125% issued August 2019 (C) 11,261 11,261 281,518 3.15 % 272,654 0.45 0.45 Series C, 6.375% issued February 2020 (C) 15,903 15,903 397,584 3.15 % 385,289 0.40 0.40 Series D, 7.00% issued September 2021 (D) 18,600 18,600 465,000 3.15 % 449,489 0.44 0.44 Total 51,964 51,964 $ 1,299,104 $ 1,257,254 $ 1.76 $ 1.76 (A) Each series has a liquidation preference or par value of $25.00 per share. (B) Carrying value reflects par value less discount and issuance costs. (C) Fixed-to-floating rate cumulative redeemable preferred. (D) Fixed-rate reset cumulative redeemable preferred. |
Schedule of Dividends Declared | Common dividends have been declared as follows: Declaration Date Payment Date Per Share Total Amounts Distributed (millions) Quarterly Dividend December 15, 2022 January 2023 0.25 118.6 March 17, 2023 April 2023 0.25 120.8 June 23, 2023 July 2023 0.25 120.8 September 14, 2023 October 2023 0.25 120.8 December 12, 2023 January 2024 0.25 120.8 March 20, 2024 April 2024 0.25 120.9 |
Schedule of Outstanding Options | The following table summarizes outstanding options as of March 31, 2024. The last sales price on the New York Stock Exchange for Rithm Capital’s common stock in the quarter ended March 31, 2024 was $11.16 per share. Recipient Date of Grant/ Exercise (A) Number of Unexercised Options Exercisable as of March 31, 2024 Weighted Average Exercise Price (B) Intrinsic Value of Exercisable Options as of March 31, 2024 (millions) Independent Directors Various 2,000 2,000 $ 10.70 $ — Former Manager 2017 1,130,916 1,130,916 12.84 — Former Manager 2018 5,320,000 5,320,000 15.57 — Former Manager 2019 6,351,000 6,351,000 14.95 — Former Manager 2020 1,619,739 1,619,739 16.30 — Former Manager 2021 7,050,335 7,049,146 9.38 12.57 Outstanding 21,473,990 21,472,801 (A) Options expire on the tenth anniversary from date of grant. (B) The exercise prices are subject to adjustment in connection with return of capital dividends. The following table summarizes activity in outstanding options: Number of Options December 31, 2023 21,473,990 Granted — Exercised — Expired — March 31, 2024 21,473,990 |
Schedule of Basic and Diluted Earnings Per Share | The following table summarizes the basic and diluted EPS calculations: Three Months Ended 2024 2023 Net income (loss) $ 287,487 $ 89,949 Noncontrolling interests in income of consolidated subsidiaries 3,452 (1,300) Dividends on preferred stock 22,395 22,395 Net income (loss) attributable to common stockholders $ 261,640 $ 68,854 Basic weighted average shares of common stock outstanding 483,336,777 478,167,178 Effect of dilutive securities: (A)(B) Stock options 897,800 — Common stock purchase warrants — 4,470,133 Restricted stock 274,754 209,600 Time-based restricted stock unit awards 816,310 — Performance-based restricted stock unit awards 605,860 — Diluted weighted average shares of common stock outstanding 485,931,501 482,846,911 Basic earnings (loss) per share attributable to common stockholders $ 0.54 $ 0.14 Diluted earnings (loss) per share attributable to common stockholders $ 0.54 $ 0.14 (A) Certain stock options and common stock purchase warrants that could potentially dilute basic EPS in the future were not included in the computation of diluted EPS for the periods where they were out-of-the-money or a loss has been recorded, because they would have been anti-dilutive for the period presented. There were no anti-dilutive common stock purchase warrants for all periods presented. (B) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of the following: Three Months Ended 2024 2023 Current: Federal $ 613 $ 17 State and local 396 22 Foreign 1,775 — Total current income tax expense (benefit) 2,784 39 Deferred: Federal 76,453 (14,168) State and local 13,237 (2,677) Foreign 938 — Total deferred income tax expense (benefit) 90,628 (16,845) Total income tax expense (benefit) $ 93,412 $ (16,806) |
ASSET MANAGEMENT REVENUES (Tabl
ASSET MANAGEMENT REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Composition of Asset Management Revenues | The following table presents the composition of asset management revenues earned by Sculptor: Three Months Ended 2024 Management fees $ 57,130 Incentive income 13,821 Other asset management revenue 4,909 Total asset management revenues $ 75,860 |
Schedule of Income and Fees Receivable and Unearned Income and Fees | The following table presents the composition of the Company’s income and fees receivable through Sculptor: March 31, 2024 December 31, 2023 Management fees receivable $ 21,548 $ 23,757 Incentive income receivable 28,281 35,377 Total income and fees receivable $ 49,829 $ 59,134 The following table presents the Company’s unearned income and fees through Sculptor: March 31, 2024 December 31, 2023 Unearned management fees $ 1 $ 1 Unearned incentive income 38,992 37,467 Total unearned income and fees $ 38,993 $ 37,468 |
BUSINESS AND ORGANIZATION (Deta
BUSINESS AND ORGANIZATION (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||
Feb. 26, 2024 | Oct. 02, 2023 | Jun. 17, 2022 | Mar. 26, 2024 | Mar. 31, 2024 | |
Total residential mortgage loans, HFS, at lower of cost or market | |||||
Related Party Transaction [Line Items] | |||||
Outstanding Face Amount | $ 89,460 | ||||
Great Ajax Corp. | |||||
Related Party Transaction [Line Items] | |||||
Warrant term | 5 years | ||||
Net proceeds | $ 14,000 | ||||
Great Ajax Corp. | Total residential mortgage loans, HFS, at lower of cost or market | |||||
Related Party Transaction [Line Items] | |||||
Outstanding Face Amount | $ 245,300 | ||||
Term Loan Agreement | Great Ajax Corp. | Subsidiary of Parent | |||||
Related Party Transaction [Line Items] | |||||
Loan agreement term | 1 year | ||||
Loan agreement, face amount | $ 70,000 | ||||
Computershare Mortgage Services Inc | |||||
Related Party Transaction [Line Items] | |||||
Business combination, price of acquisition, expected | $ 720,000 | ||||
Manager | |||||
Related Party Transaction [Line Items] | |||||
Payment for management fee | $ 400,000 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Feb. 29, 2020 | Aug. 31, 2019 | Jul. 31, 2019 | Mar. 31, 2024 | |
Cash and Cash Equivalents [Line Items] | ||||
Asset impairment charges | $ 0 | |||
7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||||
Cash and Cash Equivalents [Line Items] | ||||
Interest rate | 7.50% | 7.50% | ||
7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||||
Cash and Cash Equivalents [Line Items] | ||||
Interest rate | 7.125% | 7.125% | ||
6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||||
Cash and Cash Equivalents [Line Items] | ||||
Interest rate | 6.375% | 6.375% |
RESTATEMENT OF PREVIOUSLY ISS_3
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Reverse repurchase agreements | $ 3,040,756 | $ 1,769,601 | |
Treasury securities payable | 2,992,477 | 1,827,281 | |
Increase (decrease) in other assets | [1] | 3,111,686 | 3,144,823 |
Decrease in accrued expenses and other liabilities | [1] | (1,884,527) | (2,065,761) |
Total restricted cash | 421,557 | $ 409,896 | |
Error Adjustments | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Reverse repurchase agreements | 3,040,756 | ||
Treasury securities payable | 2,992,477 | ||
Increase (decrease) in other assets | (53,737) | ||
Decrease in accrued expenses and other liabilities | (5,488) | ||
Error Adjustments | Carrying Value Differences | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Increase (decrease) in other assets | (42,900) | ||
Error Adjustments | Accrued Interest Receivable On Reverse Repurchase Agreements | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Decrease in accrued expenses and other liabilities | 5,500 | ||
Error Adjustments | Unrecorded Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Total restricted cash | $ 10,900 | ||
[1] The Company's Consolidated Balance Sheets include assets and liabilities of consolidated variable interest entities (“VIEs”) and certain other consolidated VIEs classified as collateralized financing entities (“CFEs”) that are presented separately and measured under the CFE election. VIE assets can only be used to settle obligations and liabilities of the VIEs. VIE creditors do not have recourse to Rithm Capital Corp. As of March 31, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.8 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.9 billion and $4.7 billion, respectively. See Note 21 for further details. |
RESTATEMENT OF PREVIOUSLY ISS_4
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Aug. 05, 2022 | ||
Assets | |||||||
Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value | $ 8,706,723 | $ 8,405,938 | |||||
Real estate and other securities (includes $14,832,401 and $9,337,159 at fair value, respectively) | 14,857,286 | 9,361,712 | |||||
Residential mortgage loans, held-for-investment, at fair value | 365,398 | 379,044 | |||||
Residential mortgage loans, held-for-sale (includes $3,691,700 and $2,461,865 at fair value, respectively) | [1] | 3,766,115 | 2,540,742 | ||||
Consumer loans, held-for-investment, at fair value | [1] | 1,103,799 | 1,274,005 | ||||
Single-family rental properties | 1,007,172 | 1,001,928 | |||||
Mortgage loans receivable, at fair value | 2,042,913 | 1,879,319 | |||||
Residential mortgage loans subject to repurchase | 1,845,889 | 1,782,998 | $ 1,189,907 | ||||
Cash and cash equivalents | 1,136,437 | ||||||
Restricted cash | 421,557 | 409,896 | |||||
Servicer advances receivable | 2,586,409 | 2,760,250 | |||||
Reverse repurchase agreements | 3,040,756 | 1,769,601 | |||||
Other assets (includes $1,124,961 and $1,167,563 at fair value, respectively) | [1] | 3,111,686 | 3,144,823 | ||||
Assets of consolidated CFEs | |||||||
Investments, at fair value and other assets | [1] | 3,982,059 | 3,751,477 | ||||
Total assets | 47,935,581 | 39,717,084 | |||||
Liabilities | |||||||
Secured financing agreements | [1] | 18,271,046 | 12,561,283 | ||||
Secured notes and bonds payable (includes $221,922 and $235,770 at fair value, respectively) | [1] | 9,721,313 | 10,360,188 | ||||
Residential mortgage loan repurchase liability | 1,845,889 | 1,782,998 | |||||
Unsecured notes, net of issuance costs | 1,205,411 | 719,004 | |||||
Treasury securities payable | 2,992,477 | 1,827,281 | |||||
Payable for investments purchased | 1,271,542 | 0 | |||||
Dividends payable | 135,695 | 135,897 | |||||
Accrued expenses and other liabilities (includes $33,586 and $51,765 at fair value, respectively) | [1] | 1,884,527 | 2,065,761 | ||||
Liabilities of consolidated CFEs | |||||||
Notes payable, at fair value and other liabilities | [1] | 3,364,309 | 3,163,634 | ||||
Total liabilities | 40,692,209 | 32,616,046 | |||||
Equity | |||||||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 51,964,122 and 51,964,122 issued and outstanding, $1,299,104 and $1,299,104 aggregate liquidation preference, respectively | 1,257,254 | 1,257,254 | |||||
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 483,477,713 and 483,226,239 issued and outstanding, respectively | 4,836 | 4,833 | |||||
Additional paid-in capital | 6,075,080 | 6,074,322 | |||||
Retained earnings (accumulated deficit) | (232,119) | (373,141) | |||||
Accumulated other comprehensive income | 44,501 | 43,674 | |||||
Total Rithm Capital stockholders’ equity | 7,149,552 | 7,006,942 | |||||
Noncontrolling interests in equity of consolidated subsidiaries | 93,820 | 94,096 | |||||
Total equity | 7,243,372 | 7,101,038 | $ 6,954,543 | $ 7,010,068 | |||
Liabilities and Equity | 47,935,581 | 39,717,084 | |||||
Balance Sheet Parenthetical [Abstract] | |||||||
Fair Value | 14,832,401 | 9,337,159 | |||||
Residential mortgage loans, HFS, at fair value | 3,691,700 | 2,461,865 | |||||
Other assets, fair value | 1,124,961 | 1,167,563 | |||||
Secured notes and bonds payable, at fair value | 221,922 | 235,770 | |||||
Accrued expenses and other liabilities, fair value | $ 33,586 | $ 51,765 | |||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |||||
Preferred stock, shares issued (in shares) | 51,964,122 | 51,964,122 | |||||
Preferred stock, shares outstanding (in shares) | 51,964,122 | 51,964,122 | |||||
Preferred stock, liquidation preference | $ 1,299,104 | $ 1,299,104 | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |||||
Common stock, shares issued (in shares) | 483,477,713 | 483,226,239 | |||||
Common stock, shares outstanding (in shares) | 483,477,713 | 483,226,239 | |||||
As Reported (Unaudited) | |||||||
Assets | |||||||
Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value | $ 8,706,723 | ||||||
Real estate and other securities (includes $14,832,401 and $9,337,159 at fair value, respectively) | 15,314,199 | ||||||
Residential mortgage loans, held-for-investment, at fair value | 365,398 | ||||||
Residential mortgage loans, held-for-sale (includes $3,691,700 and $2,461,865 at fair value, respectively) | 3,766,115 | ||||||
Consumer loans, held-for-investment, at fair value | 1,103,799 | ||||||
Single-family rental properties | 1,007,172 | ||||||
Mortgage loans receivable, at fair value | 2,384,744 | ||||||
Residential mortgage loans subject to repurchase | 1,845,889 | ||||||
Cash and cash equivalents | 1,136,437 | ||||||
Servicer advances receivable | 2,586,409 | ||||||
Reverse repurchase agreements | 0 | ||||||
Other assets (includes $1,124,961 and $1,167,563 at fair value, respectively) | 3,509,497 | ||||||
Assets of consolidated CFEs | |||||||
Investments, at fair value and other assets | 0 | ||||||
Total assets | 42,120,928 | ||||||
Liabilities | |||||||
Secured financing agreements | 18,271,046 | ||||||
Secured notes and bonds payable (includes $221,922 and $235,770 at fair value, respectively) | 10,045,375 | ||||||
Residential mortgage loan repurchase liability | 1,845,889 | ||||||
Unsecured notes, net of issuance costs | 1,205,411 | ||||||
Treasury securities payable | 0 | ||||||
Payable for investments purchased | 1,271,542 | ||||||
Dividends payable | 135,695 | ||||||
Accrued expenses and other liabilities (includes $33,586 and $51,765 at fair value, respectively) | 2,102,598 | ||||||
Liabilities of consolidated CFEs | |||||||
Notes payable, at fair value and other liabilities | 0 | ||||||
Total liabilities | 34,877,556 | ||||||
Equity | |||||||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 51,964,122 and 51,964,122 issued and outstanding, $1,299,104 and $1,299,104 aggregate liquidation preference, respectively | 1,257,254 | ||||||
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 483,477,713 and 483,226,239 issued and outstanding, respectively | 4,836 | ||||||
Additional paid-in capital | 6,075,080 | ||||||
Retained earnings (accumulated deficit) | (232,119) | ||||||
Accumulated other comprehensive income | 44,501 | ||||||
Total Rithm Capital stockholders’ equity | 7,149,552 | ||||||
Noncontrolling interests in equity of consolidated subsidiaries | 93,820 | ||||||
Total equity | 7,243,372 | ||||||
Liabilities and Equity | 42,120,928 | ||||||
Error Adjustments | |||||||
Assets | |||||||
Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value | 0 | ||||||
Real estate and other securities (includes $14,832,401 and $9,337,159 at fair value, respectively) | (456,913) | ||||||
Residential mortgage loans, held-for-investment, at fair value | 0 | ||||||
Residential mortgage loans, held-for-sale (includes $3,691,700 and $2,461,865 at fair value, respectively) | 0 | ||||||
Consumer loans, held-for-investment, at fair value | 0 | ||||||
Single-family rental properties | 0 | ||||||
Mortgage loans receivable, at fair value | 0 | ||||||
Residential mortgage loans subject to repurchase | 0 | ||||||
Cash and cash equivalents | 0 | ||||||
Servicer advances receivable | 0 | ||||||
Reverse repurchase agreements | 3,040,756 | ||||||
Other assets (includes $1,124,961 and $1,167,563 at fair value, respectively) | (53,737) | ||||||
Assets of consolidated CFEs | |||||||
Investments, at fair value and other assets | 3,273,691 | ||||||
Total assets | 5,814,653 | ||||||
Liabilities | |||||||
Secured financing agreements | 0 | ||||||
Secured notes and bonds payable (includes $221,922 and $235,770 at fair value, respectively) | 0 | ||||||
Residential mortgage loan repurchase liability | 0 | ||||||
Unsecured notes, net of issuance costs | 0 | ||||||
Treasury securities payable | 2,992,477 | ||||||
Payable for investments purchased | 0 | ||||||
Dividends payable | 0 | ||||||
Accrued expenses and other liabilities (includes $33,586 and $51,765 at fair value, respectively) | 5,488 | ||||||
Liabilities of consolidated CFEs | |||||||
Notes payable, at fair value and other liabilities | 2,816,688 | ||||||
Total liabilities | 5,814,653 | ||||||
Equity | |||||||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 51,964,122 and 51,964,122 issued and outstanding, $1,299,104 and $1,299,104 aggregate liquidation preference, respectively | 0 | ||||||
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 483,477,713 and 483,226,239 issued and outstanding, respectively | 0 | ||||||
Additional paid-in capital | 0 | ||||||
Retained earnings (accumulated deficit) | 0 | ||||||
Accumulated other comprehensive income | 0 | ||||||
Total Rithm Capital stockholders’ equity | 0 | ||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | ||||||
Total equity | 0 | ||||||
Liabilities and Equity | 5,814,653 | ||||||
Subtotal | |||||||
Assets | |||||||
Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value | 8,706,723 | ||||||
Real estate and other securities (includes $14,832,401 and $9,337,159 at fair value, respectively) | 14,857,286 | ||||||
Residential mortgage loans, held-for-investment, at fair value | 365,398 | ||||||
Residential mortgage loans, held-for-sale (includes $3,691,700 and $2,461,865 at fair value, respectively) | 3,766,115 | ||||||
Consumer loans, held-for-investment, at fair value | 1,103,799 | ||||||
Single-family rental properties | 1,007,172 | ||||||
Mortgage loans receivable, at fair value | 2,384,744 | ||||||
Residential mortgage loans subject to repurchase | 1,845,889 | ||||||
Cash and cash equivalents | 1,136,437 | ||||||
Servicer advances receivable | 2,586,409 | ||||||
Reverse repurchase agreements | 3,040,756 | ||||||
Other assets (includes $1,124,961 and $1,167,563 at fair value, respectively) | 3,455,760 | ||||||
Assets of consolidated CFEs | |||||||
Investments, at fair value and other assets | 3,273,691 | ||||||
Total assets | 47,935,581 | ||||||
Liabilities | |||||||
Secured financing agreements | 18,271,046 | ||||||
Secured notes and bonds payable (includes $221,922 and $235,770 at fair value, respectively) | 10,045,375 | ||||||
Residential mortgage loan repurchase liability | 1,845,889 | ||||||
Unsecured notes, net of issuance costs | 1,205,411 | ||||||
Treasury securities payable | 2,992,477 | ||||||
Payable for investments purchased | 1,271,542 | ||||||
Dividends payable | 135,695 | ||||||
Accrued expenses and other liabilities (includes $33,586 and $51,765 at fair value, respectively) | 2,108,086 | ||||||
Liabilities of consolidated CFEs | |||||||
Notes payable, at fair value and other liabilities | 2,816,688 | ||||||
Total liabilities | 40,692,209 | ||||||
Equity | |||||||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 51,964,122 and 51,964,122 issued and outstanding, $1,299,104 and $1,299,104 aggregate liquidation preference, respectively | 1,257,254 | ||||||
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 483,477,713 and 483,226,239 issued and outstanding, respectively | 4,836 | ||||||
Additional paid-in capital | 6,075,080 | ||||||
Retained earnings (accumulated deficit) | (232,119) | ||||||
Accumulated other comprehensive income | 44,501 | ||||||
Total Rithm Capital stockholders’ equity | 7,149,552 | ||||||
Noncontrolling interests in equity of consolidated subsidiaries | 93,820 | ||||||
Total equity | 7,243,372 | ||||||
Liabilities and Equity | 47,935,581 | ||||||
Reclassifications | |||||||
Assets | |||||||
Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value | 0 | ||||||
Real estate and other securities (includes $14,832,401 and $9,337,159 at fair value, respectively) | 0 | ||||||
Residential mortgage loans, held-for-investment, at fair value | 0 | ||||||
Residential mortgage loans, held-for-sale (includes $3,691,700 and $2,461,865 at fair value, respectively) | 0 | ||||||
Consumer loans, held-for-investment, at fair value | 0 | ||||||
Single-family rental properties | 0 | ||||||
Mortgage loans receivable, at fair value | (341,831) | ||||||
Residential mortgage loans subject to repurchase | 0 | ||||||
Cash and cash equivalents | 0 | ||||||
Servicer advances receivable | 0 | ||||||
Reverse repurchase agreements | 0 | ||||||
Other assets (includes $1,124,961 and $1,167,563 at fair value, respectively) | (344,074) | ||||||
Assets of consolidated CFEs | |||||||
Investments, at fair value and other assets | 708,368 | ||||||
Total assets | 0 | ||||||
Liabilities | |||||||
Secured financing agreements | 0 | ||||||
Secured notes and bonds payable (includes $221,922 and $235,770 at fair value, respectively) | (324,062) | ||||||
Residential mortgage loan repurchase liability | 0 | ||||||
Unsecured notes, net of issuance costs | 0 | ||||||
Treasury securities payable | 0 | ||||||
Payable for investments purchased | 0 | ||||||
Dividends payable | 0 | ||||||
Accrued expenses and other liabilities (includes $33,586 and $51,765 at fair value, respectively) | (223,559) | ||||||
Liabilities of consolidated CFEs | |||||||
Notes payable, at fair value and other liabilities | 547,621 | ||||||
Total liabilities | 0 | ||||||
Equity | |||||||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 51,964,122 and 51,964,122 issued and outstanding, $1,299,104 and $1,299,104 aggregate liquidation preference, respectively | 0 | ||||||
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 483,477,713 and 483,226,239 issued and outstanding, respectively | 0 | ||||||
Additional paid-in capital | 0 | ||||||
Retained earnings (accumulated deficit) | 0 | ||||||
Accumulated other comprehensive income | 0 | ||||||
Total Rithm Capital stockholders’ equity | 0 | ||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | ||||||
Total equity | 0 | ||||||
Liabilities and Equity | 0 | ||||||
Consolidated Entity, Excluding Consolidated VIE | |||||||
Assets | |||||||
Cash and cash equivalents | [1] | 1,136,437 | $ 1,287,199 | ||||
Restricted cash | 382,939 | [1] | 378,048 | ||||
Consolidated Entity, Excluding Consolidated VIE | As Reported (Unaudited) | |||||||
Assets | |||||||
Restricted cash | 394,546 | ||||||
Consolidated Entity, Excluding Consolidated VIE | Error Adjustments | |||||||
Assets | |||||||
Restricted cash | 10,856 | ||||||
Consolidated Entity, Excluding Consolidated VIE | Subtotal | |||||||
Assets | |||||||
Restricted cash | 405,402 | ||||||
Consolidated Entity, Excluding Consolidated VIE | Reclassifications | |||||||
Assets | |||||||
Restricted cash | (22,463) | ||||||
Variable Interest Entity, Primary Beneficiary | |||||||
Assets | |||||||
Cash and cash equivalents | 23,532 | 23,540 | |||||
Restricted cash | 38,618 | 31,848 | |||||
Assets of consolidated CFEs | |||||||
Investments, at fair value and other assets | 3,937,614 | 3,714,037 | |||||
Total assets | 5,844,022 | 5,566,258 | |||||
Liabilities | |||||||
Secured financing agreements | 1,052,769 | 996,845 | |||||
Accrued expenses and other liabilities (includes $33,586 and $51,765 at fair value, respectively) | 34,178 | 20,132 | |||||
Liabilities of consolidated CFEs | |||||||
Total liabilities | 4,917,362 | 4,682,388 | |||||
Balance Sheet Parenthetical [Abstract] | |||||||
Residential mortgage loans, HFS, at fair value | $ 1,177,451 | $ 1,112,097 | |||||
[1] The Company's Consolidated Balance Sheets include assets and liabilities of consolidated variable interest entities (“VIEs”) and certain other consolidated VIEs classified as collateralized financing entities (“CFEs”) that are presented separately and measured under the CFE election. VIE assets can only be used to settle obligations and liabilities of the VIEs. VIE creditors do not have recourse to Rithm Capital Corp. As of March 31, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.8 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.9 billion and $4.7 billion, respectively. See Note 21 for further details. |
RESTATEMENT OF PREVIOUSLY ISS_5
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | $ 1,184,758 | $ 824,788 |
Total revenues | 1,260,618 | 824,788 |
Expenses | ||
Interest expense and warehouse line fees | 409,827 | 304,215 |
General and administrative | 197,194 | 167,479 |
Compensation and benefits | 235,778 | 188,880 |
Total operating expenses | 842,799 | 660,574 |
Other Income (Loss) | ||
Realized and unrealized gains (losses), net | (44,846) | (65,905) |
Other income (loss), net | 7,926 | (25,166) |
Total other income (loss) | (36,920) | (91,071) |
Income (loss) before income taxes | 380,899 | 73,143 |
Income tax expense (benefit) | 93,412 | (16,806) |
Net income (loss) | 287,487 | 89,949 |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 3,452 | (1,300) |
Dividends on preferred stock | 22,395 | 22,395 |
Net income (loss) attributable to common stockholders - basic | $ 261,640 | $ 68,854 |
Net Income (loss) per share of common stock | ||
Basic (in dollars per share) | $ 0.54 | $ 0.14 |
Diluted (in dollars per share) | $ 0.54 | $ 0.14 |
Weighted average number of shares of common stock outstanding | ||
Basic (in shares) | 483,336,777 | 478,167,178 |
Diluted (in shares) | 485,931,501 | 482,846,911 |
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.25 |
As Reported (Unaudited) | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | $ 1,210,450 | |
Total revenues | 1,286,310 | |
Expenses | ||
Interest expense and warehouse line fees | 414,365 | |
General and administrative | 195,118 | |
Compensation and benefits | 235,778 | |
Total operating expenses | 845,261 | |
Other Income (Loss) | ||
Realized and unrealized gains (losses), net | (68,134) | |
Other income (loss), net | 7,984 | |
Total other income (loss) | (60,150) | |
Income (loss) before income taxes | 380,899 | |
Income tax expense (benefit) | 93,412 | |
Net income (loss) | 287,487 | |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 3,452 | |
Dividends on preferred stock | 22,395 | |
Net income (loss) attributable to common stockholders - basic | $ 261,640 | |
Net Income (loss) per share of common stock | ||
Basic (in dollars per share) | $ 0.54 | |
Diluted (in dollars per share) | $ 0.54 | |
Weighted average number of shares of common stock outstanding | ||
Basic (in shares) | 483,336,777 | |
Diluted (in shares) | 485,931,501 | |
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | |
Error Adjustments | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | $ (16,747) | |
Total revenues | (16,747) | |
Expenses | ||
Interest expense and warehouse line fees | 0 | |
General and administrative | 2,076 | |
Compensation and benefits | 0 | |
Total operating expenses | 2,076 | |
Other Income (Loss) | ||
Realized and unrealized gains (losses), net | 18,881 | |
Other income (loss), net | (58) | |
Total other income (loss) | 18,823 | |
Income (loss) before income taxes | 0 | |
Income tax expense (benefit) | 0 | |
Net income (loss) | 0 | |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | |
Dividends on preferred stock | 0 | |
Net income (loss) attributable to common stockholders - basic | $ 0 | |
Net Income (loss) per share of common stock | ||
Basic (in dollars per share) | $ 0 | |
Diluted (in dollars per share) | $ 0 | |
Weighted average number of shares of common stock outstanding | ||
Basic (in shares) | 0 | |
Diluted (in shares) | 0 | |
Dividends declared per share of common stock (in dollars per share) | $ 0 | |
Subtotal | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | $ 1,193,703 | |
Total revenues | 1,269,563 | |
Expenses | ||
Interest expense and warehouse line fees | 414,365 | |
General and administrative | 197,194 | |
Compensation and benefits | 235,778 | |
Total operating expenses | 847,337 | |
Other Income (Loss) | ||
Realized and unrealized gains (losses), net | (49,253) | |
Other income (loss), net | 7,926 | |
Total other income (loss) | (41,327) | |
Income (loss) before income taxes | 380,899 | |
Income tax expense (benefit) | 93,412 | |
Net income (loss) | 287,487 | |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 3,452 | |
Dividends on preferred stock | 22,395 | |
Net income (loss) attributable to common stockholders - basic | $ 261,640 | |
Net Income (loss) per share of common stock | ||
Basic (in dollars per share) | $ 0.54 | |
Diluted (in dollars per share) | $ 0.54 | |
Weighted average number of shares of common stock outstanding | ||
Basic (in shares) | 483,336,777 | |
Diluted (in shares) | 485,931,501 | |
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | |
Reclassifications | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | $ (8,945) | |
Total revenues | (8,945) | |
Expenses | ||
Interest expense and warehouse line fees | (4,538) | |
General and administrative | 0 | |
Compensation and benefits | 0 | |
Total operating expenses | (4,538) | |
Other Income (Loss) | ||
Realized and unrealized gains (losses), net | 4,407 | |
Other income (loss), net | 0 | |
Total other income (loss) | 4,407 | |
Income (loss) before income taxes | 0 | |
Income tax expense (benefit) | 0 | |
Net income (loss) | 0 | |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | |
Dividends on preferred stock | 0 | |
Net income (loss) attributable to common stockholders - basic | $ 0 | |
Net Income (loss) per share of common stock | ||
Basic (in dollars per share) | $ 0 | |
Diluted (in dollars per share) | $ 0 | |
Weighted average number of shares of common stock outstanding | ||
Basic (in shares) | 0 | |
Diluted (in shares) | 0 | |
Dividends declared per share of common stock (in dollars per share) | $ 0 | |
MSRs | ||
Weighted average number of shares of common stock outstanding | ||
Realization of cash flows | $ (116,839) | $ (105,691) |
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 469,891 | 469,657 |
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | As Reported (Unaudited) | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 470,203 | |
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | Error Adjustments | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | (312) | |
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | Subtotal | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 469,891 | |
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | Reclassifications | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 0 | |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(116,839) and $(105,691), respectively) | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 84,175 | (142,304) |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(116,839) and $(105,691), respectively) | As Reported (Unaudited) | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 84,175 | |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(116,839) and $(105,691), respectively) | Error Adjustments | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 0 | |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(116,839) and $(105,691), respectively) | Subtotal | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 84,175 | |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(116,839) and $(105,691), respectively) | Reclassifications | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 0 | |
Servicing revenue, net | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 554,066 | 327,353 |
Servicing revenue, net | As Reported (Unaudited) | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 554,378 | |
Servicing revenue, net | Error Adjustments | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | (312) | |
Servicing revenue, net | Subtotal | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 554,066 | |
Servicing revenue, net | Reclassifications | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 0 | |
Interest income | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 429,886 | 330,023 |
Interest income | As Reported (Unaudited) | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 448,179 | |
Interest income | Error Adjustments | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | (9,348) | |
Interest income | Subtotal | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 438,831 | |
Interest income | Reclassifications | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | (8,945) | |
Gain on originated residential mortgage loans, held-for-sale, net | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 142,458 | 109,268 |
Gain on originated residential mortgage loans, held-for-sale, net | As Reported (Unaudited) | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 149,545 | |
Gain on originated residential mortgage loans, held-for-sale, net | Error Adjustments | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | (7,087) | |
Gain on originated residential mortgage loans, held-for-sale, net | Subtotal | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 142,458 | |
Gain on originated residential mortgage loans, held-for-sale, net | Reclassifications | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 0 | |
Other revenues | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 58,348 | 58,144 |
Other revenues | As Reported (Unaudited) | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 58,348 | |
Other revenues | Error Adjustments | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 0 | |
Other revenues | Subtotal | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 58,348 | |
Other revenues | Reclassifications | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 0 | |
Asset management revenues | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Total revenues | 75,860 | $ 0 |
Asset management revenues | As Reported (Unaudited) | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Total revenues | 75,860 | |
Asset management revenues | Error Adjustments | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Total revenues | 0 | |
Asset management revenues | Subtotal | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Total revenues | 75,860 | |
Asset management revenues | Reclassifications | ||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | ||
Total revenues | $ 0 |
RESTATEMENT OF PREVIOUSLY ISS_6
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Cash Flow Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Cash Flows From Operating Activities | |||
Net income (loss) | $ 287,487 | $ 89,949 | |
Change in fair value of investments, net | |||
Change in fair value of investments, net | 341,219 | 247,075 | |
Change in fair value of equity investments | (6,012) | 2,098 | |
Change in fair value of secured notes and bonds payable | 4,605 | 2,500 | |
(Gain) loss on settlement of investments, net | (274,709) | (167,609) | |
(Gain) loss on sale of originated residential mortgage loans, held-for-sale, net | (142,457) | (109,268) | |
(Gain) loss on transfer of loans to real estate owned ("REO") | (2,166) | (3,276) | |
Accretion and other amortization | (21,224) | (12,766) | |
Provision (reversal) for credit losses on securities, loans and REO | 462 | (2,803) | |
Non-cash portions of servicing revenue, net | (76,376) | 149,730 | |
Deferred tax provision | 90,628 | (16,822) | |
Mortgage loans originated and purchased for sale, net of fees | (11,439,065) | (7,531,856) | |
Sales proceeds and loan repayment proceeds for residential mortgage loans, held-for-sale | 9,856,746 | 8,137,021 | |
Residential mortgage loan repayment proceeds of consolidated CFEs | 80,822 | 57,854 | |
Interest received from servicer advance investments, loans and other | 13,488 | 13,705 | |
Purchase of investments of consolidated CFEs | (9,811) | 0 | |
Proceeds from sale and repayments of investments of consolidated CFEs | 2,090 | 0 | |
Changes in: | |||
Servicer advances receivable, net | 165,425 | 230,596 | |
Other assets | 37,637 | 50,472 | |
Accrued expenses and other liabilities | (223,335) | 21,346 | |
Net cash provided by (used in) operating activities | (1,314,546) | 1,248,442 | |
Cash Flows From Investing Activities | |||
Purchase of US Treasuries | (4,733,368) | 0 | |
Purchase of servicer advance investments | (212,656) | (232,446) | |
Purchase of RMBS | (1,891) | (2,883,278) | |
US Treasury short sales | 1,425,370 | 0 | |
Reverse repurchase agreements entered | (1,256,872) | 0 | |
Purchase of Single-family rental (“SFR”) properties, MSRs and other assets | (63,877) | (4,607) | |
Draws on revolving consumer loans | (4,113) | (6,831) | |
Origination of mortgage loans receivable | (649,698) | 0 | |
Net settlement of derivatives | 371,827 | 225,560 | |
Return of investments in Excess MSRs | 10,423 | 7,821 | |
Principal repayments from servicer advance investments | 224,039 | 240,331 | |
Principal repayments from RMBS | 165,324 | 143,419 | |
Principal repayments from residential mortgage loans | 12,187 | 8,272 | |
Principal repayments from consumer loans | 153,479 | 24,784 | |
Proceeds from sale of MSRs and MSR financing receivables | (671) | 1,357 | |
Proceeds from sale of REO | 5,216 | 5,678 | |
Net cash provided by (used in) investing activities | (4,050,190) | (602,156) | |
Cash Flows From Financing Activities | |||
Repayments of secured financing agreements | (18,055,590) | (11,327,261) | |
Repayments of warehouse credit facilities | (10,778,294) | (8,473,149) | |
Repayment of unsecured senior notes | (275,000) | 0 | |
Net settlement of margin deposits under repurchase agreements and derivatives | (346,569) | (387,780) | |
Repayments of secured notes and bonds payable | (1,405,197) | (1,677,534) | |
Deferred financing fees | (8,298) | (2,103) | |
Dividends paid on common and preferred stock | (143,298) | (140,968) | |
Borrowings under secured financing agreements | 22,495,882 | 12,240,027 | |
Borrowings under warehouse credit facilities | 12,047,306 | 8,062,420 | |
Borrowings under notes receivable financing | 0 | ||
Borrowings under secured notes and bonds payable | 761,266 | 1,303,796 | |
Proceeds from issuance of unsecured senior notes | 767,103 | 0 | |
Noncontrolling interest in equity of consolidated subsidiaries - distributions | (3,728) | (5,430) | |
Proceeds from issuance of debt obligations of consolidated CFEs | 257,597 | 0 | |
Repayments of debt obligations of consolidated CFEs | (87,545) | (51,983) | |
Net cash provided by (used in) financing activities | 5,225,635 | (459,965) | |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (139,101) | 186,321 | |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 1,697,095 | 1,629,328 | $ 1,629,328 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 1,557,994 | 1,815,649 | 1,697,095 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the period for interest | 465,964 | 313,870 | |
Cash paid during the period for income taxes | 1,259 | 402 | |
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||
Dividends declared but not paid on common and preferred stock | 143,199 | 143,149 | |
Transfer from residential mortgage loans to REO and other assets | 5,917 | 6,025 | |
Real estate securities retained from loan securitizations | 0 | 0 | |
Residential mortgage loans subject to repurchase | 1,845,889 | 1,189,907 | 1,782,998 |
Purchase of Agency RMBS, settled after quarter-end | 1,271,542 | 0 | |
As Reported (Unaudited) | |||
Cash Flows From Operating Activities | |||
Net income (loss) | 287,487 | ||
Change in fair value of investments, net | |||
Change in fair value of investments, net | 341,744 | ||
Change in fair value of equity investments | (6,012) | ||
Change in fair value of secured notes and bonds payable | 4,605 | ||
(Gain) loss on settlement of investments, net | (274,709) | ||
(Gain) loss on sale of originated residential mortgage loans, held-for-sale, net | (149,545) | ||
(Gain) loss on transfer of loans to real estate owned ("REO") | (2,166) | ||
Accretion and other amortization | (21,091) | ||
Provision (reversal) for credit losses on securities, loans and REO | 462 | ||
Non-cash portions of servicing revenue, net | (76,376) | ||
Deferred tax provision | 90,628 | ||
Mortgage loans originated and purchased for sale, net of fees | (11,439,065) | ||
Sales proceeds and loan repayment proceeds for residential mortgage loans, held-for-sale | 10,114,343 | ||
Residential mortgage loan repayment proceeds of consolidated CFEs | 0 | ||
Interest received from servicer advance investments, loans and other | 13,488 | ||
Purchase of investments of consolidated CFEs | 0 | ||
Proceeds from sale and repayments of investments of consolidated CFEs | 0 | ||
Changes in: | |||
Servicer advances receivable, net | 165,425 | ||
Other assets | 29,916 | ||
Accrued expenses and other liabilities | (223,335) | ||
Net cash provided by (used in) operating activities | (1,144,201) | ||
Cash Flows From Investing Activities | |||
Purchase of US Treasuries | (4,733,368) | ||
Purchase of servicer advance investments | (212,656) | ||
Purchase of RMBS | (16,928) | ||
US Treasury short sales | 1,425,370 | ||
Reverse repurchase agreements entered | (1,256,872) | ||
Purchase of Single-family rental (“SFR”) properties, MSRs and other assets | (63,877) | ||
Draws on revolving consumer loans | (4,113) | ||
Origination of mortgage loans receivable | (649,698) | ||
Net settlement of derivatives | 371,827 | ||
Return of investments in Excess MSRs | 10,423 | ||
Principal repayments from servicer advance investments | 224,039 | ||
Principal repayments from RMBS | 177,333 | ||
Principal repayments from residential mortgage loans | 12,187 | ||
Principal repayments from consumer loans | 153,479 | ||
Proceeds from sale of MSRs and MSR financing receivables | (671) | ||
Proceeds from sale of REO | 5,216 | ||
Net cash provided by (used in) investing activities | (4,053,218) | ||
Cash Flows From Financing Activities | |||
Repayments of secured financing agreements | (18,055,590) | ||
Repayments of warehouse credit facilities | (10,778,294) | ||
Repayment of unsecured senior notes | (275,000) | ||
Net settlement of margin deposits under repurchase agreements and derivatives | (346,569) | ||
Repayments of secured notes and bonds payable | (1,405,197) | ||
Deferred financing fees | (8,298) | ||
Dividends paid on common and preferred stock | (143,298) | ||
Borrowings under secured financing agreements | 22,495,882 | ||
Borrowings under warehouse credit facilities | 12,047,306 | ||
Borrowings under notes receivable financing | 0 | ||
Borrowings under secured notes and bonds payable | 761,266 | ||
Proceeds from issuance of unsecured senior notes | 767,103 | ||
Noncontrolling interest in equity of consolidated subsidiaries - distributions | (3,728) | ||
Proceeds from issuance of debt obligations of consolidated CFEs | 0 | ||
Repayments of debt obligations of consolidated CFEs | 0 | ||
Net cash provided by (used in) financing activities | 5,055,583 | ||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (141,836) | ||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 1,672,819 | ||
Cash, Cash Equivalents and Restricted Cash, End of Period | 1,530,983 | 1,672,819 | |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the period for interest | 419,701 | ||
Cash paid during the period for income taxes | 1,259 | ||
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||
Dividends declared but not paid on common and preferred stock | 143,199 | ||
Transfer from residential mortgage loans to REO and other assets | 5,917 | ||
Real estate securities retained from loan securitizations | 34,203 | ||
Residential mortgage loans subject to repurchase | 1,845,889 | ||
Purchase of Agency RMBS, settled after quarter-end | 1,271,542 | ||
Error Adjustments | |||
Cash Flows From Operating Activities | |||
Net income (loss) | 0 | ||
Change in fair value of investments, net | |||
Change in fair value of investments, net | (525) | ||
Change in fair value of equity investments | 0 | ||
Change in fair value of secured notes and bonds payable | 0 | ||
(Gain) loss on settlement of investments, net | 0 | ||
(Gain) loss on sale of originated residential mortgage loans, held-for-sale, net | 7,088 | ||
(Gain) loss on transfer of loans to real estate owned ("REO") | 0 | ||
Accretion and other amortization | (133) | ||
Provision (reversal) for credit losses on securities, loans and REO | 0 | ||
Non-cash portions of servicing revenue, net | 0 | ||
Deferred tax provision | 0 | ||
Mortgage loans originated and purchased for sale, net of fees | 0 | ||
Sales proceeds and loan repayment proceeds for residential mortgage loans, held-for-sale | (257,597) | ||
Residential mortgage loan repayment proceeds of consolidated CFEs | 80,822 | ||
Interest received from servicer advance investments, loans and other | 0 | ||
Purchase of investments of consolidated CFEs | 0 | ||
Proceeds from sale and repayments of investments of consolidated CFEs | 0 | ||
Changes in: | |||
Servicer advances receivable, net | 0 | ||
Other assets | 0 | ||
Accrued expenses and other liabilities | 0 | ||
Net cash provided by (used in) operating activities | (170,345) | ||
Cash Flows From Investing Activities | |||
Purchase of US Treasuries | 0 | ||
Purchase of servicer advance investments | 0 | ||
Purchase of RMBS | 15,037 | ||
US Treasury short sales | 0 | ||
Reverse repurchase agreements entered | 0 | ||
Purchase of Single-family rental (“SFR”) properties, MSRs and other assets | 0 | ||
Draws on revolving consumer loans | 0 | ||
Origination of mortgage loans receivable | 0 | ||
Net settlement of derivatives | 0 | ||
Return of investments in Excess MSRs | 0 | ||
Principal repayments from servicer advance investments | 0 | ||
Principal repayments from RMBS | (12,009) | ||
Principal repayments from residential mortgage loans | 0 | ||
Principal repayments from consumer loans | 0 | ||
Proceeds from sale of MSRs and MSR financing receivables | 0 | ||
Proceeds from sale of REO | 0 | ||
Net cash provided by (used in) investing activities | 3,028 | ||
Cash Flows From Financing Activities | |||
Repayments of secured financing agreements | 0 | ||
Repayments of warehouse credit facilities | 0 | ||
Repayment of unsecured senior notes | 0 | ||
Net settlement of margin deposits under repurchase agreements and derivatives | 0 | ||
Repayments of secured notes and bonds payable | 0 | ||
Deferred financing fees | 0 | ||
Dividends paid on common and preferred stock | 0 | ||
Borrowings under secured financing agreements | 0 | ||
Borrowings under warehouse credit facilities | 0 | ||
Borrowings under notes receivable financing | 0 | ||
Borrowings under secured notes and bonds payable | 0 | ||
Proceeds from issuance of unsecured senior notes | 0 | ||
Noncontrolling interest in equity of consolidated subsidiaries - distributions | 0 | ||
Proceeds from issuance of debt obligations of consolidated CFEs | 257,597 | ||
Repayments of debt obligations of consolidated CFEs | (87,545) | ||
Net cash provided by (used in) financing activities | 170,052 | ||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 2,735 | ||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 24,276 | ||
Cash, Cash Equivalents and Restricted Cash, End of Period | 27,011 | 24,276 | |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the period for interest | 46,263 | ||
Cash paid during the period for income taxes | 0 | ||
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||
Dividends declared but not paid on common and preferred stock | 0 | ||
Transfer from residential mortgage loans to REO and other assets | 0 | ||
Real estate securities retained from loan securitizations | (34,203) | ||
Residential mortgage loans subject to repurchase | 0 | ||
Purchase of Agency RMBS, settled after quarter-end | 0 | ||
Subtotal | |||
Cash Flows From Operating Activities | |||
Net income (loss) | 287,487 | ||
Change in fair value of investments, net | |||
Change in fair value of investments, net | 341,219 | ||
Change in fair value of equity investments | (6,012) | ||
Change in fair value of secured notes and bonds payable | 4,605 | ||
(Gain) loss on settlement of investments, net | (274,709) | ||
(Gain) loss on sale of originated residential mortgage loans, held-for-sale, net | (142,457) | ||
(Gain) loss on transfer of loans to real estate owned ("REO") | (2,166) | ||
Accretion and other amortization | (21,224) | ||
Provision (reversal) for credit losses on securities, loans and REO | 462 | ||
Non-cash portions of servicing revenue, net | (76,376) | ||
Deferred tax provision | 90,628 | ||
Mortgage loans originated and purchased for sale, net of fees | (11,439,065) | ||
Sales proceeds and loan repayment proceeds for residential mortgage loans, held-for-sale | 9,856,746 | ||
Residential mortgage loan repayment proceeds of consolidated CFEs | 80,822 | ||
Interest received from servicer advance investments, loans and other | 13,488 | ||
Purchase of investments of consolidated CFEs | 0 | ||
Proceeds from sale and repayments of investments of consolidated CFEs | 0 | ||
Changes in: | |||
Servicer advances receivable, net | 165,425 | ||
Other assets | 29,916 | ||
Accrued expenses and other liabilities | (223,335) | ||
Net cash provided by (used in) operating activities | (1,314,546) | ||
Cash Flows From Investing Activities | |||
Purchase of US Treasuries | (4,733,368) | ||
Purchase of servicer advance investments | (212,656) | ||
Purchase of RMBS | (1,891) | ||
US Treasury short sales | 1,425,370 | ||
Reverse repurchase agreements entered | (1,256,872) | ||
Purchase of Single-family rental (“SFR”) properties, MSRs and other assets | (63,877) | ||
Draws on revolving consumer loans | (4,113) | ||
Origination of mortgage loans receivable | (649,698) | ||
Net settlement of derivatives | 371,827 | ||
Return of investments in Excess MSRs | 10,423 | ||
Principal repayments from servicer advance investments | 224,039 | ||
Principal repayments from RMBS | 165,324 | ||
Principal repayments from residential mortgage loans | 12,187 | ||
Principal repayments from consumer loans | 153,479 | ||
Proceeds from sale of MSRs and MSR financing receivables | (671) | ||
Proceeds from sale of REO | 5,216 | ||
Net cash provided by (used in) investing activities | (4,050,190) | ||
Cash Flows From Financing Activities | |||
Repayments of secured financing agreements | (18,055,590) | ||
Repayments of warehouse credit facilities | (10,778,294) | ||
Repayment of unsecured senior notes | (275,000) | ||
Net settlement of margin deposits under repurchase agreements and derivatives | (346,569) | ||
Repayments of secured notes and bonds payable | (1,405,197) | ||
Deferred financing fees | (8,298) | ||
Dividends paid on common and preferred stock | (143,298) | ||
Borrowings under secured financing agreements | 22,495,882 | ||
Borrowings under warehouse credit facilities | 12,047,306 | ||
Borrowings under notes receivable financing | 0 | ||
Borrowings under secured notes and bonds payable | 761,266 | ||
Proceeds from issuance of unsecured senior notes | 767,103 | ||
Noncontrolling interest in equity of consolidated subsidiaries - distributions | (3,728) | ||
Proceeds from issuance of debt obligations of consolidated CFEs | 257,597 | ||
Repayments of debt obligations of consolidated CFEs | (87,545) | ||
Net cash provided by (used in) financing activities | 5,225,635 | ||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (139,101) | ||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 1,697,095 | ||
Cash, Cash Equivalents and Restricted Cash, End of Period | 1,557,994 | 1,697,095 | |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the period for interest | 465,964 | ||
Cash paid during the period for income taxes | 1,259 | ||
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||
Dividends declared but not paid on common and preferred stock | 143,199 | ||
Transfer from residential mortgage loans to REO and other assets | 5,917 | ||
Real estate securities retained from loan securitizations | 0 | ||
Residential mortgage loans subject to repurchase | 1,845,889 | ||
Purchase of Agency RMBS, settled after quarter-end | 1,271,542 | ||
Reclassifications | |||
Cash Flows From Operating Activities | |||
Net income (loss) | 0 | ||
Change in fair value of investments, net | |||
Change in fair value of investments, net | 0 | ||
Change in fair value of equity investments | 0 | ||
Change in fair value of secured notes and bonds payable | 0 | ||
(Gain) loss on settlement of investments, net | 0 | ||
(Gain) loss on sale of originated residential mortgage loans, held-for-sale, net | 0 | ||
(Gain) loss on transfer of loans to real estate owned ("REO") | 0 | ||
Accretion and other amortization | 0 | ||
Provision (reversal) for credit losses on securities, loans and REO | 0 | ||
Non-cash portions of servicing revenue, net | 0 | ||
Deferred tax provision | 0 | ||
Mortgage loans originated and purchased for sale, net of fees | 0 | ||
Sales proceeds and loan repayment proceeds for residential mortgage loans, held-for-sale | 0 | ||
Residential mortgage loan repayment proceeds of consolidated CFEs | 0 | ||
Interest received from servicer advance investments, loans and other | 0 | ||
Purchase of investments of consolidated CFEs | (9,811) | ||
Proceeds from sale and repayments of investments of consolidated CFEs | 2,090 | ||
Changes in: | |||
Servicer advances receivable, net | 0 | ||
Other assets | 7,721 | ||
Accrued expenses and other liabilities | 0 | ||
Net cash provided by (used in) operating activities | 0 | ||
Cash Flows From Investing Activities | |||
Purchase of US Treasuries | 0 | ||
Purchase of servicer advance investments | 0 | ||
Purchase of RMBS | |||
US Treasury short sales | 0 | ||
Reverse repurchase agreements entered | 0 | ||
Purchase of Single-family rental (“SFR”) properties, MSRs and other assets | 0 | ||
Draws on revolving consumer loans | 0 | ||
Origination of mortgage loans receivable | 0 | ||
Net settlement of derivatives | 0 | ||
Return of investments in Excess MSRs | 0 | ||
Principal repayments from servicer advance investments | 0 | ||
Principal repayments from RMBS | 0 | ||
Principal repayments from residential mortgage loans | 0 | ||
Principal repayments from consumer loans | 0 | ||
Proceeds from sale of MSRs and MSR financing receivables | 0 | ||
Proceeds from sale of REO | 0 | ||
Net cash provided by (used in) investing activities | 0 | ||
Cash Flows From Financing Activities | |||
Repayments of secured financing agreements | 0 | ||
Repayments of warehouse credit facilities | 0 | ||
Repayment of unsecured senior notes | 0 | ||
Net settlement of margin deposits under repurchase agreements and derivatives | 0 | ||
Repayments of secured notes and bonds payable | 0 | ||
Deferred financing fees | 0 | ||
Dividends paid on common and preferred stock | 0 | ||
Borrowings under secured financing agreements | 0 | ||
Borrowings under warehouse credit facilities | 0 | ||
Borrowings under notes receivable financing | 0 | ||
Borrowings under secured notes and bonds payable | 0 | ||
Proceeds from issuance of unsecured senior notes | 0 | ||
Noncontrolling interest in equity of consolidated subsidiaries - distributions | 0 | ||
Proceeds from issuance of debt obligations of consolidated CFEs | 0 | ||
Repayments of debt obligations of consolidated CFEs | 0 | ||
Net cash provided by (used in) financing activities | 0 | ||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 0 | ||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 0 | ||
Cash, Cash Equivalents and Restricted Cash, End of Period | 0 | $ 0 | |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the period for interest | 0 | ||
Cash paid during the period for income taxes | 0 | ||
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||
Dividends declared but not paid on common and preferred stock | 0 | ||
Transfer from residential mortgage loans to REO and other assets | 0 | ||
Real estate securities retained from loan securitizations | 0 | ||
Residential mortgage loans subject to repurchase | 0 | ||
Purchase of Agency RMBS, settled after quarter-end | 0 | ||
Consolidated Entity, Excluding Consolidated VIE | |||
Cash Flows From Investing Activities | |||
Principal repayments from mortgage loans receivable | 423,269 | 0 | |
Consolidated Entity, Excluding Consolidated VIE | As Reported (Unaudited) | |||
Cash Flows From Investing Activities | |||
Principal repayments from mortgage loans receivable | 505,091 | ||
Consolidated Entity, Excluding Consolidated VIE | Error Adjustments | |||
Cash Flows From Investing Activities | |||
Principal repayments from mortgage loans receivable | 0 | ||
Consolidated Entity, Excluding Consolidated VIE | Subtotal | |||
Cash Flows From Investing Activities | |||
Principal repayments from mortgage loans receivable | 505,091 | ||
Consolidated Entity, Excluding Consolidated VIE | Reclassifications | |||
Cash Flows From Investing Activities | |||
Principal repayments from mortgage loans receivable | (81,822) | ||
Variable Interest Entity, Primary Beneficiary | |||
Cash Flows From Investing Activities | |||
Principal repayments from mortgage loans receivable | 81,822 | $ 0 | |
Variable Interest Entity, Primary Beneficiary | As Reported (Unaudited) | |||
Cash Flows From Investing Activities | |||
Principal repayments from mortgage loans receivable | 0 | ||
Variable Interest Entity, Primary Beneficiary | Error Adjustments | |||
Cash Flows From Investing Activities | |||
Principal repayments from mortgage loans receivable | 0 | ||
Variable Interest Entity, Primary Beneficiary | Subtotal | |||
Cash Flows From Investing Activities | |||
Principal repayments from mortgage loans receivable | 0 | ||
Variable Interest Entity, Primary Beneficiary | Reclassifications | |||
Cash Flows From Investing Activities | |||
Principal repayments from mortgage loans receivable | $ 81,822 |
SEGMENT REPORTING (AS RESTATE_3
SEGMENT REPORTING (AS RESTATED) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 1,184,758 | $ 824,788 | ||||
Total revenues | 1,260,618 | 824,788 | ||||
Interest expense and warehouse line fees | 409,827 | 304,215 | ||||
General and administrative | 197,194 | 167,479 | ||||
Compensation and benefits | 235,778 | 188,880 | ||||
Total operating expenses | 842,799 | 660,574 | ||||
Realized and unrealized gains (losses), net | (44,846) | (65,905) | ||||
Other income (loss), net | 7,926 | (25,166) | ||||
Total other income (loss) | (36,920) | (91,071) | ||||
Income (loss) before income taxes | 380,899 | 73,143 | ||||
Income tax expense (benefit) | 93,412 | (16,806) | ||||
Net income (loss) | 287,487 | 89,949 | ||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 3,452 | (1,300) | ||||
Dividends on preferred stock | 22,395 | 22,395 | ||||
Net income (loss) attributable to common stockholders - basic | 261,640 | 68,854 | ||||
Investments | 31,849,406 | |||||
Cash and cash equivalents | 1,136,437 | |||||
Restricted cash | 421,557 | $ 409,896 | ||||
Other assets | 10,452,883 | |||||
Goodwill | 131,857 | 131,857 | ||||
Assets of consolidated CFEs | [1] | 3,982,059 | 3,751,477 | |||
Total assets | 47,935,581 | 39,717,084 | ||||
Debt | 29,197,770 | |||||
Other liabilities | 8,130,130 | |||||
Liabilities of consolidated CFEs | [1] | 3,364,309 | 3,163,634 | |||
Total liabilities | 40,692,209 | 32,616,046 | ||||
Total equity | 7,243,372 | 6,954,543 | 7,101,038 | $ 7,010,068 | ||
Noncontrolling interests in equity of consolidated subsidiaries | 93,820 | 94,096 | ||||
Total Rithm Capital stockholders’ equity | 7,149,552 | 7,006,942 | ||||
Investments in equity method investees | 219,146 | |||||
Consolidated Entity, Excluding Consolidated VIE | ||||||
Segment Reporting Information [Line Items] | ||||||
Restricted cash | 382,939 | [1] | 378,048 | |||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 469,891 | 469,657 | ||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows) | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 84,175 | (142,304) | ||||
Servicing revenue, net | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 554,066 | 327,353 | ||||
Interest income | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 429,886 | 330,023 | ||||
Gain on originated residential mortgage loans, held-for-sale, net | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 142,458 | 109,268 | ||||
Other investment portfolio revenues | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 58,348 | 58,144 | ||||
Asset management revenues | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 75,860 | 0 | ||||
Asset management related interest income | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 4,900 | |||||
MSRs | ||||||
Segment Reporting Information [Line Items] | ||||||
Realization of cash flows | (116,839) | (105,691) | ||||
Origination and Servicing | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill | 24,376 | 24,376 | ||||
Investment Portfolio | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill | 5,092 | 5,092 | ||||
Asset Management | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill | 46,658 | 46,658 | ||||
Operating Segments | Origination and Servicing | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 776,729 | 529,885 | ||||
Interest expense and warehouse line fees | 131,174 | 111,069 | ||||
General and administrative | 83,564 | 80,832 | ||||
Compensation and benefits | 153,806 | 160,514 | ||||
Total operating expenses | 368,544 | 352,415 | ||||
Realized and unrealized gains (losses), net | 0 | (23) | ||||
Other income (loss), net | (36) | (13,427) | ||||
Total other income (loss) | (36) | (13,450) | ||||
Income (loss) before income taxes | 408,149 | 164,020 | ||||
Income tax expense (benefit) | 96,201 | (3,672) | ||||
Net income (loss) | 311,948 | 167,692 | ||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 55 | (42) | ||||
Dividends on preferred stock | 0 | 0 | ||||
Net income (loss) attributable to common stockholders - basic | 311,893 | 167,734 | ||||
Investments | 10,844,061 | |||||
Cash and cash equivalents | 468,355 | |||||
Restricted cash | 237,186 | 195,490 | ||||
Other assets | 3,427,033 | |||||
Goodwill | 24,376 | |||||
Assets of consolidated CFEs | 0 | |||||
Total assets | 15,001,011 | |||||
Debt | 7,621,241 | |||||
Other liabilities | 3,294,952 | |||||
Liabilities of consolidated CFEs | 0 | |||||
Total liabilities | 10,916,193 | |||||
Total equity | 4,084,818 | |||||
Noncontrolling interests in equity of consolidated subsidiaries | 8,051 | |||||
Total Rithm Capital stockholders’ equity | 4,076,767 | |||||
Investments in equity method investees | 0 | |||||
Operating Segments | Origination and Servicing | Consolidated Entity, Excluding Consolidated VIE | ||||||
Segment Reporting Information [Line Items] | ||||||
Restricted cash | 237,186 | |||||
Operating Segments | Origination and Servicing | Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 397,478 | 349,424 | ||||
Operating Segments | Origination and Servicing | Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows) | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 93,361 | (37,526) | ||||
Operating Segments | Origination and Servicing | Servicing revenue, net | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 490,839 | 311,898 | ||||
Operating Segments | Origination and Servicing | Interest income | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 140,021 | 109,766 | ||||
Operating Segments | Origination and Servicing | Gain on originated residential mortgage loans, held-for-sale, net | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 145,869 | 108,221 | ||||
Operating Segments | Origination and Servicing | Other investment portfolio revenues | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Origination and Servicing | Asset management revenues | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 0 | 0 | ||||
Operating Segments | Investment Portfolio | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 343,307 | 245,232 | ||||
Interest expense and warehouse line fees | 228,074 | 157,910 | ||||
General and administrative | 66,997 | 74,693 | ||||
Compensation and benefits | 4,743 | 7,136 | ||||
Total operating expenses | 299,814 | 239,739 | ||||
Realized and unrealized gains (losses), net | (62,570) | (64,883) | ||||
Other income (loss), net | 3,682 | (5,270) | ||||
Total other income (loss) | (58,888) | (70,153) | ||||
Income (loss) before income taxes | (15,395) | (64,660) | ||||
Income tax expense (benefit) | 1,248 | (11,040) | ||||
Net income (loss) | (16,643) | (53,620) | ||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 2,037 | (1,258) | ||||
Dividends on preferred stock | 0 | 0 | ||||
Net income (loss) attributable to common stockholders - basic | (18,680) | (52,362) | ||||
Investments | 18,750,436 | |||||
Cash and cash equivalents | 505,162 | |||||
Restricted cash | 109,809 | 150,432 | ||||
Other assets | 6,044,513 | |||||
Goodwill | 5,092 | |||||
Assets of consolidated CFEs | 3,273,690 | |||||
Total assets | 28,672,547 | |||||
Debt | 18,446,477 | |||||
Other liabilities | 4,415,974 | |||||
Liabilities of consolidated CFEs | 2,816,688 | |||||
Total liabilities | 25,679,139 | |||||
Total equity | 2,993,408 | |||||
Noncontrolling interests in equity of consolidated subsidiaries | 43,426 | |||||
Total Rithm Capital stockholders’ equity | 2,949,982 | |||||
Investments in equity method investees | 117,146 | |||||
Operating Segments | Investment Portfolio | Consolidated Entity, Excluding Consolidated VIE | ||||||
Segment Reporting Information [Line Items] | ||||||
Restricted cash | 93,654 | |||||
Operating Segments | Investment Portfolio | Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 72,413 | 120,233 | ||||
Operating Segments | Investment Portfolio | Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows) | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | (9,186) | (104,778) | ||||
Operating Segments | Investment Portfolio | Servicing revenue, net | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 63,227 | 15,455 | ||||
Operating Segments | Investment Portfolio | Interest income | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 225,143 | 170,586 | ||||
Operating Segments | Investment Portfolio | Gain on originated residential mortgage loans, held-for-sale, net | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | (3,411) | 1,047 | ||||
Operating Segments | Investment Portfolio | Other investment portfolio revenues | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 58,348 | 58,144 | ||||
Operating Segments | Investment Portfolio | Asset management revenues | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 0 | 0 | ||||
Operating Segments | Mortgage Loans Receivable | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 64,720 | 49,671 | ||||
Interest expense and warehouse line fees | 32,414 | 25,839 | ||||
General and administrative | 4,754 | 4,129 | ||||
Compensation and benefits | 11,303 | 12,102 | ||||
Total operating expenses | 48,471 | 42,070 | ||||
Realized and unrealized gains (losses), net | 24,566 | (999) | ||||
Other income (loss), net | 274 | 1,713 | ||||
Total other income (loss) | 24,840 | 714 | ||||
Income (loss) before income taxes | 41,089 | 8,315 | ||||
Income tax expense (benefit) | (333) | (2,094) | ||||
Net income (loss) | 41,422 | 10,409 | ||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | ||||
Dividends on preferred stock | 0 | 0 | ||||
Net income (loss) attributable to common stockholders - basic | 41,422 | 10,409 | ||||
Investments | 2,042,913 | |||||
Cash and cash equivalents | 60,713 | |||||
Restricted cash | 55,458 | 37,805 | ||||
Other assets | 128,310 | |||||
Goodwill | 55,731 | |||||
Assets of consolidated CFEs | 358,326 | |||||
Total assets | 2,689,844 | |||||
Debt | 1,657,136 | |||||
Other liabilities | 20,064 | |||||
Liabilities of consolidated CFEs | 324,433 | |||||
Total liabilities | 2,001,633 | |||||
Total equity | 688,211 | |||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | |||||
Total Rithm Capital stockholders’ equity | 688,211 | |||||
Investments in equity method investees | 0 | |||||
Operating Segments | Mortgage Loans Receivable | Consolidated Entity, Excluding Consolidated VIE | ||||||
Segment Reporting Information [Line Items] | ||||||
Restricted cash | 43,851 | |||||
Operating Segments | Mortgage Loans Receivable | Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Mortgage Loans Receivable | Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows) | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Mortgage Loans Receivable | Servicing revenue, net | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Mortgage Loans Receivable | Interest income | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 64,720 | 49,671 | ||||
Operating Segments | Mortgage Loans Receivable | Gain on originated residential mortgage loans, held-for-sale, net | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Mortgage Loans Receivable | Other investment portfolio revenues | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Mortgage Loans Receivable | Asset management revenues | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 0 | 0 | ||||
Operating Segments | Asset Management | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 75,860 | 0 | ||||
Interest expense and warehouse line fees | 7,621 | 0 | ||||
General and administrative | 31,935 | 0 | ||||
Compensation and benefits | 63,112 | 0 | ||||
Total operating expenses | 102,668 | 0 | ||||
Realized and unrealized gains (losses), net | (6,842) | 0 | ||||
Other income (loss), net | 3,969 | 0 | ||||
Total other income (loss) | (2,873) | 0 | ||||
Income (loss) before income taxes | (29,681) | |||||
Income tax expense (benefit) | (3,704) | 0 | ||||
Net income (loss) | (25,977) | 0 | ||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 1,360 | 0 | ||||
Dividends on preferred stock | 0 | 0 | ||||
Net income (loss) attributable to common stockholders - basic | (27,337) | 0 | ||||
Investments | 211,996 | |||||
Cash and cash equivalents | 82,460 | |||||
Restricted cash | 19,104 | $ 26,169 | ||||
Other assets | 829,427 | |||||
Goodwill | 46,658 | |||||
Assets of consolidated CFEs | 350,043 | |||||
Total assets | 1,528,832 | |||||
Debt | 442,350 | |||||
Other liabilities | 214,043 | |||||
Liabilities of consolidated CFEs | 223,188 | |||||
Total liabilities | 879,581 | |||||
Total equity | 649,251 | |||||
Noncontrolling interests in equity of consolidated subsidiaries | 42,343 | |||||
Total Rithm Capital stockholders’ equity | 606,908 | |||||
Investments in equity method investees | 102,000 | |||||
Operating Segments | Asset Management | Consolidated Entity, Excluding Consolidated VIE | ||||||
Segment Reporting Information [Line Items] | ||||||
Restricted cash | 8,248 | |||||
Operating Segments | Asset Management | Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Asset Management | Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows) | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Asset Management | Servicing revenue, net | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Asset Management | Interest income | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Asset Management | Gain on originated residential mortgage loans, held-for-sale, net | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Asset Management | Other investment portfolio revenues | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Asset Management | Asset management revenues | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 75,860 | 0 | ||||
Operating Segments | Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 2 | 0 | ||||
Interest expense and warehouse line fees | 10,544 | 9,397 | ||||
General and administrative | 9,944 | 7,825 | ||||
Compensation and benefits | 2,814 | 9,128 | ||||
Total operating expenses | 23,302 | 26,350 | ||||
Realized and unrealized gains (losses), net | 0 | 0 | ||||
Other income (loss), net | 37 | (8,182) | ||||
Total other income (loss) | 37 | (8,182) | ||||
Income (loss) before income taxes | (23,263) | (34,532) | ||||
Income tax expense (benefit) | 0 | 0 | ||||
Net income (loss) | (23,263) | (34,532) | ||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | ||||
Dividends on preferred stock | 22,395 | 22,395 | ||||
Net income (loss) attributable to common stockholders - basic | (45,658) | (56,927) | ||||
Investments | 0 | |||||
Cash and cash equivalents | 19,747 | |||||
Other assets | 23,600 | |||||
Goodwill | 0 | |||||
Assets of consolidated CFEs | 0 | |||||
Total assets | 43,347 | |||||
Debt | 1,030,566 | |||||
Other liabilities | 185,097 | |||||
Liabilities of consolidated CFEs | 0 | |||||
Total liabilities | 1,215,663 | |||||
Total equity | (1,172,316) | |||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | |||||
Total Rithm Capital stockholders’ equity | (1,172,316) | |||||
Investments in equity method investees | 0 | |||||
Operating Segments | Corporate | Consolidated Entity, Excluding Consolidated VIE | ||||||
Segment Reporting Information [Line Items] | ||||||
Restricted cash | 0 | |||||
Operating Segments | Corporate | Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Corporate | Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows) | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Corporate | Servicing revenue, net | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Corporate | Interest income | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 2 | 0 | ||||
Operating Segments | Corporate | Gain on originated residential mortgage loans, held-for-sale, net | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Corporate | Other investment portfolio revenues | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments | Corporate | Asset management revenues | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | $ 0 | $ 0 | ||||
[1] The Company's Consolidated Balance Sheets include assets and liabilities of consolidated variable interest entities (“VIEs”) and certain other consolidated VIEs classified as collateralized financing entities (“CFEs”) that are presented separately and measured under the CFE election. VIE assets can only be used to settle obligations and liabilities of the VIEs. VIE creditors do not have recourse to Rithm Capital Corp. As of March 31, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.8 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.9 billion and $4.7 billion, respectively. See Note 21 for further details. |
EXCESS MORTGAGE SERVICING RIG_3
EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Components of Excess MSRs (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Servicing Assets at Fair Value [Line Items] | ||
Carrying Value | $ 8,706,723 | $ 8,405,938 |
Excess MSRs, at fair value | ||
Servicing Assets at Fair Value [Line Items] | ||
Carrying Value | 255,111 | 271,150 |
Direct investments in Excess MSRs | ||
Servicing Assets at Fair Value [Line Items] | ||
Carrying Value | 199,363 | 208,385 |
Excess MSR joint ventures | ||
Servicing Assets at Fair Value [Line Items] | ||
Carrying Value | $ 55,748 | $ 62,765 |
EXCESS MORTGAGE SERVICING RIG_4
EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Carrying Value of Direct Investments in Excess MSRs (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Carrying Value of Investments in Excess MSRs | |
Beginning balance | $ 8,405,938 |
Servicing Asset, Fair Value, Change in Fair Value, Other, Statement of Income or Comprehensive Income [Extensible Enumeration] | Realized and unrealized gains (losses), net |
Ending balance | $ 8,706,723 |
Excess MSRs | |
Carrying Value of Investments in Excess MSRs | |
Beginning balance | 208,385 |
Interest income | 2,446 |
Other income | 0 |
Proceeds from repayments | (9,546) |
Proceeds from sales | 0 |
Change in fair value | (1,922) |
Ending balance | $ 199,363 |
EXCESS MORTGAGE SERVICING RIG_5
EXCESS MORTGAGE SERVICING RIGHTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 01, 2024 | Oct. 02, 2023 | Mar. 31, 2024 | |
Excess MSRs | Weighted Average | |||
Schedule of Equity Method Investments [Line Items] | |||
Discount rate | 8.80% | ||
Computershare Mortgage Services Inc | |||
Schedule of Equity Method Investments [Line Items] | |||
Business combination, price of acquisition, expected | $ 720 | ||
Computershare Mortgage Services Inc | Subsequent Event | |||
Schedule of Equity Method Investments [Line Items] | |||
Business combination, price of acquisition, expected | $ 720 | ||
Fair value of excess MSRs to be derecognized | $ 1 |
EXCESS MORTGAGE SERVICING RIG_6
EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Direct Investments in Excess MSRs and Changes in Fair Value of Excess MSR Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||
Weighted Average Life (Years) | 3 years 7 months 6 days | ||
Agency | |||
Schedule of Equity Method Investments [Line Items] | |||
Original and Recaptured Pools | $ (1,922) | $ (9,818) | |
Excess MSRs | |||
Schedule of Equity Method Investments [Line Items] | |||
Unpaid Principal Balance | $ 41,899,426 | ||
Weighted Average Life (Years) | 6 years | ||
Amortized Cost Basis | $ 174,621 | ||
Carrying Value | $ 199,363 | $ 208,385 | |
Excess MSRs | Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in Excess MSR | 32.50% | ||
Excess MSRs | Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in Excess MSR | 100% | ||
Excess MSRs | Weighted Average | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in Excess MSR | 56.40% | ||
Excess MSRs | Former Manager-managed funds | Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in Excess MSR | 0% | ||
Excess MSRs | Former Manager-managed funds | Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in Excess MSR | 50% | ||
Excess MSRs | Mr. Cooper | Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in Excess MSR | 0% | ||
Excess MSRs | Mr. Cooper | Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in Excess MSR | 35% | ||
Servicer Advances | Servicer advance investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Unpaid Principal Balance | $ 14,900,000 |
EXCESS MORTGAGE SERVICING RIG_7
EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Financial Results of the Excess MSR Joint Ventures, Accounted for Under the Equity Method Investees (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||||
Excess MSRs | $ 111,664 | $ 114,552 | ||
Other assets | 203,355 | 182,880 | ||
Equity | 7,243,372 | $ 6,954,543 | 7,101,038 | $ 7,010,068 |
Rithm Capital’s investment | 8,706,723 | 8,405,938 | ||
Interest income | 3,454 | 2,404 | ||
Other income (loss) | (3,330) | (5,225) | ||
Expenses | (14) | (8) | ||
Net income (loss) | 287,487 | 89,949 | ||
Excess MSR joint ventures | ||||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||||
Rithm Capital’s investment | $ 55,748 | $ 62,765 | ||
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 | $ 519 | $ 11,664 | ||
Other liabilities | (687) | (687) | ||
Equity | 111,496 | $ 125,529 | ||
Net income (loss) | $ 110 | $ (2,829) |
EXCESS MORTGAGE SERVICING RIG_8
EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Activity of Investments in Equity Method Investees (Details) - Recurring Basis $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Increase (Decrease) in Equity Method Investments [Roll Forward] | |
Beginning balance | $ 62,765 |
Distributions of earnings from equity method investees | (107) |
Distributions of capital from equity method investees | (6,965) |
Change in fair value of investments in equity method investees | 55 |
Ending balance | $ 55,748 |
EXCESS MORTGAGE SERVICING RIG_9
EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Excess MSR Investments Made through Equity Method Investees (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||
Weighted Average Life (Years) | 3 years 7 months 6 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 Securities | ||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||
Rithm Capital Interest in Investees | 50% | |
Excess MSR joint ventures | Agency Securities | Agency | ||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | ||
Unpaid Principal Balance | $ 16,678,050 | |
Investee Interest in Excess MSR | 66.70% | |
Rithm Capital Interest in Investees | 50% | |
Amortized Cost Basis | $ 92,197 | |
Carrying Value | $ 111,664 | |
Weighted Average Life (Years) | 5 years 2 months 12 days |
MORTGAGE SERVICING RIGHTS AND_3
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (AS RESTATED) - Schedule of Activity Related to MSRs and MSR Financing Receivables (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Activity related to carrying value of investments in mortgage servicing rights [Roll Forward] | |
Beginning balance | $ 8,405,938 |
Purchases, net | 0 |
Originations | 215,939 |
Sales | 671 |
Realization of cash flows | (116,839) |
Change in valuation inputs and assumptions | 201,014 |
Ending balance | $ 8,706,723 |
MORTGAGE SERVICING RIGHTS AND_4
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (AS RESTATED) - Schedule of Components of Servicing Revenue, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Servicing Asset at Amortized Cost [Line Items] | ||
Contractually Specified Servicing Fee Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | |
Ancillary Fee Income, Servicing Financial Asset, Statement of Income or Comprehensive Income [Extensible Enumeration] | Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | |
Change in valuation inputs and assumptions, net of realized gains (losses) | $ (201,014) | |
MSRs | ||
Servicing Asset at Amortized Cost [Line Items] | ||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | 430,114 | $ 439,050 |
Ancillary and other fees | 39,777 | 30,607 |
Servicing fee revenue, net and fees | 469,891 | 469,657 |
Realization of cash flows | (116,839) | (105,691) |
Change in valuation inputs and assumptions, net of realized gains (losses) | 201,014 | (36,613) |
Servicing revenue, net | $ 554,066 | $ 327,353 |
MORTGAGE SERVICING RIGHTS AND_5
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (AS RESTATED) - Schedule of MSRs and MSR Financing Receivables by Type (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | |
Servicing Asset at Amortized Cost [Line Items] | |||
Weighted Average Life (Years) | 3 years 7 months 6 days | ||
Carrying Value | $ 8,706,723 | $ 8,405,938 | |
Residential mortgage loans subject to repurchase | 1,845,889 | $ 1,782,998 | $ 1,189,907 |
Mortgage Servicing Rights and Mortgage Servicing Rights Financing Receivable | |||
Servicing Asset at Amortized Cost [Line Items] | |||
UPB of Underlying Residential Mortgage Loans | $ 526,673,826 | ||
Weighted Average Life (Years) | 7 years 6 months | ||
Carrying Value | $ 8,706,723 | ||
MSRs | Weighted Average | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Discount rate | 8.50% | ||
MSRs | Minimum | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Discount rate | 7.90% | ||
MSRs | Maximum | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Discount rate | 10.80% | ||
Agency | MSRs | |||
Servicing Asset at Amortized Cost [Line Items] | |||
UPB of Underlying Residential Mortgage Loans | $ 348,953,092 | ||
Weighted Average Life (Years) | 7 years 9 months 18 days | ||
Carrying Value | $ 5,477,522 | ||
Non-Agency | MSRs | |||
Servicing Asset at Amortized Cost [Line Items] | |||
UPB of Underlying Residential Mortgage Loans | $ 47,806,353 | ||
Weighted Average Life (Years) | 6 years 9 months 18 days | ||
Carrying Value | $ 666,958 | ||
Ginnie Mae | MSRs | |||
Servicing Asset at Amortized Cost [Line Items] | |||
UPB of Underlying Residential Mortgage Loans | $ 129,914,381 | ||
Weighted Average Life (Years) | 7 years 2 months 12 days | ||
Carrying Value | $ 2,562,243 |
MORTGAGE SERVICING RIGHTS AND_6
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (AS RESTATED) - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Jan. 31, 2018 | Jul. 31, 2017 | ||
Schedule of MSRs [Line Items] | ||||||
Residential mortgage loans subject to repurchase | $ 1,845,889 | $ 1,189,907 | $ 1,782,998 | |||
Residential mortgage loans, HFS | [1] | 3,766,115 | 2,540,742 | |||
Reserve for non-recovery advances | $ 93,244 | $ 93,681 | ||||
Reserve for non-recovery advances, percent | 3.50% | 3.30% | ||||
Mortgage Loans Serviced | ||||||
Schedule of MSRs [Line Items] | ||||||
Residential mortgage loan UPB and other collateral | $ 111,300,000 | 94,100,000 | ||||
Subservicing revenue | 38,100 | $ 34,000 | ||||
Ocwen | Rithm Capital | ||||||
Schedule of MSRs [Line Items] | ||||||
Unpaid principal balance of underlying loans, not yet transferred | $ 11,100,000 | |||||
PHH Mortgage Corporation | ||||||
Schedule of MSRs [Line Items] | ||||||
Subservicer percent of UPB | 8.50% | |||||
Valon | ||||||
Schedule of MSRs [Line Items] | ||||||
Subservicer percent of UPB | 4.80% | |||||
Newrez and Caliber | ||||||
Schedule of MSRs [Line Items] | ||||||
Subservicer percent of UPB | 86.70% | |||||
Ginnie Mae Loans | ||||||
Schedule of MSRs [Line Items] | ||||||
Residential mortgage loans, HFS | $ 500,000 | |||||
Ocwen | ||||||
Schedule of MSRs [Line Items] | ||||||
Residential mortgage loan UPB and other collateral | $ 86,800,000 | $ 110,000,000 | ||||
[1] The Company's Consolidated Balance Sheets include assets and liabilities of consolidated variable interest entities (“VIEs”) and certain other consolidated VIEs classified as collateralized financing entities (“CFEs”) that are presented separately and measured under the CFE election. VIE assets can only be used to settle obligations and liabilities of the VIEs. VIE creditors do not have recourse to Rithm Capital Corp. As of March 31, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.8 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.9 billion and $4.7 billion, respectively. See Note 21 for further details. |
MORTGAGE SERVICING RIGHTS AND_7
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (AS RESTATED) - Schedule of the Geographic Distribution of the Underlying Residential Mortgage Loans of the MSRs and MSR Financing Receivables (Details) - MSRs - Mortgage Loans | Mar. 31, 2024 | Dec. 31, 2023 |
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% | 17.10% |
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 | 5.70% | 5.80% |
New Jersey | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.30% | 4.30% |
Virginia | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.70% | 3.60% |
Maryland | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.40% | 3.40% |
Illinois | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.30% | 3.30% |
Georgia | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3% | 3% |
Other US | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 38.80% | 38.70% |
MORTGAGE SERVICING RIGHTS AND_8
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (AS RESTATED) - Schedule of Type of Advances Included in the Servicer Advances Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Transfers and Servicing of Financial Assets [Abstract] | ||
Principal and interest advances | $ 592,660 | $ 616,801 |
Escrow advances (taxes and insurance advances) | 1,283,083 | 1,442,697 |
Foreclosure advances | 775,190 | 767,171 |
Total | 2,650,933 | 2,826,669 |
Servicer advances receivable related to agency MSRs | 529,600 | 585,000 |
Servicer advances receivable related to Ginnie Mae MSRS, recoverable from Ginnie Mae | 372,200 | 405,600 |
Servicer advances, unamortized discount and accrual | $ 64,500 | $ 66,400 |
MORTGAGE SERVICING RIGHTS AND_9
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (AS RESTATED) - Schedule of Servicer Advances Provision Activity (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Servicer Advances Reserve [Roll Forward] | |
Beginning balance | $ 93,681 |
Provision | 7,217 |
Write-offs | (7,654) |
Ending balance | $ 93,244 |
SERVICER ADVANCE INVESTMENTS -
SERVICER ADVANCE INVESTMENTS - Narrative (Details) - USD ($) $ in Millions | May 01, 2024 | Oct. 02, 2023 | Mar. 31, 2024 | Dec. 31, 2023 |
Computershare Mortgage Services Inc | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Business combination, price of acquisition, expected | $ 720 | |||
Computershare Mortgage Services Inc | Subsequent Event | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Business combination, price of acquisition, expected | $ 720 | |||
Fair value of servicer advance investment to be derecognized | $ 9.7 | |||
Advance Purchaser | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Capital distributed to third-party co-investors | $ 71.5 | |||
Capital distributed to new residential | $ 597.9 | |||
Servicer advance investments | Advance Purchaser | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Rithm Capital’s percentage ownership | 89.30% | 89.30% |
SERVICER ADVANCE INVESTMENTS _2
SERVICER ADVANCE INVESTMENTS - Schedule of Servicer Advance Investments (Details) - Servicer advance investments - Servicer Advances - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Investments in and Advances to Affiliates [Line Items] | ||
Amortized Cost Basis | $ 352,275 | $ 362,760 |
Carrying Value | $ 374,511 | $ 376,881 |
Weighted Average Discount Rate | 6.20% | 6.20% |
Weighted Average Yield | 7% | 6.60% |
Weighted Average Life (Years) | 8 years 4 months 24 days | 8 years 1 month 6 days |
SERVICER ADVANCE INVESTMENTS _3
SERVICER ADVANCE INVESTMENTS - Schedule of Additional Information Regarding the Servicer Advance Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Investments in and Advances to Affiliates [Line Items] | ||
Outstanding Servicer Advances | $ 374,511 | $ 376,881 |
Face Amount of Secured Notes and Bonds Payable | 31,642,766 | |
Servicer advance investments | Servicer Advances | ||
Investments in and Advances to Affiliates [Line Items] | ||
UPB of Underlying Residential Mortgage Loans | 14,871,701 | 15,499,559 |
Outstanding Servicer Advances | $ 313,271 | $ 320,630 |
Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2.10% | 2.10% |
Face Amount of Secured Notes and Bonds Payable | $ 270,705 | $ 278,845 |
Gross Loan-to-Value | 84.10% | 84.10% |
Net Loan-to-Value | 81.70% | 81.90% |
Gross Cost of Funds | 7.30% | 7.50% |
Issue price (as a percent) | 6.90% | 6.90% |
SERVICER ADVANCE INVESTMENTS _4
SERVICER ADVANCE INVESTMENTS - Schedule of Servicer Advance Investments and Related Financing (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Principal and interest advances | $ 592,660 | $ 616,801 |
Escrow advances (taxes and insurance advances) | 1,283,083 | 1,442,697 |
Foreclosure advances | 775,190 | 767,171 |
Total | 2,650,933 | 2,826,669 |
Servicer advance investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Principal and interest advances | 54,452 | 57,909 |
Escrow advances (taxes and insurance advances) | 145,846 | 149,346 |
Foreclosure advances | 112,973 | 113,375 |
Total | $ 313,271 | $ 320,630 |
REAL ESTATE AND OTHER SECURIT_3
REAL ESTATE AND OTHER SECURITIES (AS RESTATED) - Schedule of Real Estate and Other Securities by Designation (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Carrying Value | $ 14,832,401 | $ 9,337,159 |
Weighted Average Life (Years) | 3 years 7 months 6 days | |
Investments | $ 31,849,406 | |
Residual Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | 30,100 | |
AFS Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 73,387 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 64,331 | 65,496 |
Number of Securities | security | 1 | |
Weighted Average Coupon | 3.50% | |
Weighted Average Yield | 3.50% | |
Weighted Average Life (Years) | 10 years 9 months 18 days | |
AFS Non-Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 2,409,685 | |
Gross Unrealized Gains | 70,861 | |
Gross Unrealized Losses | (25,123) | |
Carrying Value | $ 332,146 | 337,427 |
Number of Securities | security | 308 | |
Weighted Average Coupon | 3.50% | |
Weighted Average Yield | 3.90% | |
Weighted Average Life (Years) | 5 years 2 months 12 days | |
FVO Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 9,678,119 | |
Gross Unrealized Gains | 41,444 | |
Gross Unrealized Losses | (24,684) | |
Carrying Value | $ 9,501,879 | 8,467,634 |
Number of Securities | security | 46 | |
Weighted Average Coupon | 5.10% | |
Weighted Average Yield | 5.10% | |
Weighted Average Life (Years) | 11 years | |
Treasury | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 4,500,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (8,759) | |
Carrying Value | $ 4,472,656 | 0 |
Number of Securities | security | 7 | |
Weighted Average Coupon | 4.30% | |
Weighted Average Yield | 4.30% | |
Weighted Average Life (Years) | 4 years 1 month 6 days | |
FVO Non-Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 7,331,641 | |
Gross Unrealized Gains | 23,312 | |
Gross Unrealized Losses | (41,342) | |
Carrying Value | $ 461,389 | 466,602 |
Number of Securities | security | 421 | |
Weighted Average Coupon | 2.30% | |
Weighted Average Yield | 7.20% | |
Weighted Average Life (Years) | 4 years 3 months 18 days | |
Agency and Non-Agency Residential Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 23,992,832 | |
Gross Unrealized Gains | 135,617 | |
Gross Unrealized Losses | (99,908) | |
Carrying Value | $ 14,832,401 | $ 9,337,159 |
Number of Securities | security | 783 | |
Weighted Average Coupon | 4.80% | |
Weighted Average Yield | 4.90% | |
Weighted Average Life (Years) | 7 years 1 month 6 days | |
Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 9,751,506 | |
Agency | Fixed Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 14,300,000 | |
Non-Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 9,741,326 | |
Non-Agency | Fixed Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 7,400,000 | |
Residual and interest - only notional amount | 6,700,000 | |
Non-Agency | Floating Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 2,300,000 | |
Residual and interest - only notional amount | 2,000,000 | |
Consumer loan bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 280 | |
Gross Unrealized Gains | 259 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 259 | |
Number of Securities | security | 1 | |
Weighted Average Life (Years) | 1 year 6 months | |
Interest-only securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 3,706,086 | |
Gross Unrealized Gains | 7,598 | |
Gross Unrealized Losses | (23,232) | |
Carrying Value | $ 70,026 | |
Number of Securities | security | 113 | |
Weighted Average Coupon | 1% | |
Weighted Average Yield | 10.90% | |
Weighted Average Life (Years) | 2 years 3 months 18 days | |
Servicing strips | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 2,431,838 | |
Gross Unrealized Gains | 3,351 | |
Gross Unrealized Losses | (466) | |
Carrying Value | $ 20,078 | |
Number of Securities | security | 50 | |
Weighted Average Coupon | 0% | |
Weighted Average Yield | 14.90% | |
Weighted Average Life (Years) | 6 years 2 months 12 days | |
Commercial MBSs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 3,845 | |
Gross Unrealized Gains | 194 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 3,901 | |
Number of Securities | security | 2 | |
Weighted Average Coupon | 7.90% | |
Weighted Average Yield | 7.90% | |
Weighted Average Life (Years) | 1 year 2 months 12 days | |
CLOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 215,412 | |
Gross Unrealized Gains | 4,425 | |
Gross Unrealized Losses | (2,403) | |
Carrying Value | $ 211,996 | |
Number of Securities | security | 194 | |
Weighted Average Coupon | 5.50% | |
Weighted Average Yield | 8.70% | |
Weighted Average Life (Years) | 8 years 7 months 6 days |
REAL ESTATE AND OTHER SECURIT_4
REAL ESTATE AND OTHER SECURITIES (AS RESTATED) - Schedule of Real Estate and Other Securities, Held to Maturity (Details) | 3 Months Ended | |
Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Weighted Average Life (Years) | 3 years 7 months 6 days | |
Residential Mortgage Backed Securities, Held to Maturity, Treasury | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Outstanding Face Amount | $ 25,000,000 | |
Amortized Cost / Carrying Value | 24,885,000 | $ 24,553,000 |
Fair Value | 24,886,000 | |
Unrecognized Gains /(Losses) | $ 1,000 | |
Number of Securities | security | 1 | |
Weighted Average Yield | 5.40% | |
Weighted Average Life (Years) | 1 month 6 days |
REAL ESTATE AND OTHER SECURIT_5
REAL ESTATE AND OTHER SECURITIES (AS RESTATED) - Schedule of Purchases and Sales of Real Estate and Other Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Treasury | ||
Purchases | ||
Face | $ 4,800 | $ 0 |
Purchase price | 4,773.9 | 0 |
Sales | ||
Face | 0 | 0 |
Amortized cost | 0 | 0 |
Sale price | 0 | 0 |
Realized gain (loss) | 0 | 0 |
Agency | ||
Purchases | ||
Face | 1,287 | 2,162.4 |
Purchase price | 1,255.9 | 2,154.4 |
Sales | ||
Face | 0 | 1,462.4 |
Amortized cost | 0 | 1,442.8 |
Sale price | 0 | 1,395.9 |
Realized gain (loss) | 0 | (46.9) |
Non-Agency | ||
Purchases | ||
Face | 17.7 | 25.2 |
Purchase price | 17.6 | 2.4 |
Sales | ||
Face | 0 | 0 |
Amortized cost | 0 | 0 |
Sale price | 0 | 0 |
Realized gain (loss) | $ 0 | $ 0 |
REAL ESTATE AND OTHER SECURIT_6
REAL ESTATE AND OTHER SECURITIES (AS RESTATED) - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Agency | |
Debt Securities, Available-for-sale [Line Items] | |
Face amount of securities purchased | $ 1,300 |
Payments for securities purchased, unsettled | 1,300 |
Non-Agency | |
Debt Securities, Available-for-sale [Line Items] | |
Face amount of securities purchased | 14 |
Payments for securities purchased, unsettled | $ 13.9 |
REAL ESTATE AND OTHER SECURIT_7
REAL ESTATE AND OTHER SECURITIES (AS RESTATED) - Schedule of RMBS Designated as AFS in an Unrealized Loss Position (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Credit Impairment | $ (10,684) | $ (10,152) |
Weighted Average Life (Years) | 3 years 7 months 6 days | |
Less than 12 Months | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 38,678 | |
Before Credit Impairment - Amortized Cost Basis | 37,051 | |
Credit Impairment | (21) | |
After Credit Impairment - Amortized Cost Basis | 37,030 | |
Gross Unrealized Losses - Less than 12 Months | (4,486) | |
Carrying Value - Less than 12 Months | $ 32,544 | 49,069 |
Number of Securities - Less than 12 Months | security | 28 | |
Weighted Average Coupon | 2.80% | |
Weighted Average Yield | 4.20% | |
Weighted Average Life (Years) | 6 years 3 months 18 days | |
12 or More Months | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 290,243 | |
Before Credit Impairment - Amortized Cost Basis | 269,086 | |
Credit Impairment | (10,663) | |
After Credit Impairment - Amortized Cost Basis | 258,423 | |
Gross Unrealized Losses - 12 or More Months | (20,637) | |
Carrying Value - 12 or More Months | $ 237,786 | 231,309 |
Number of Securities - 12 or More Months | security | 140 | |
Weighted Average Coupon | 3.70% | |
Weighted Average Yield | 3.70% | |
Weighted Average Life (Years) | 6 years 2 months 12 days | |
Total/Weighted Average | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 328,921 | |
Before Credit Impairment - Amortized Cost Basis | 306,137 | |
Credit Impairment | (10,684) | |
After Credit Impairment - Amortized Cost Basis | 295,453 | |
Gross Unrealized Losses - Total | (25,123) | |
Carrying Value - Total | $ 270,330 | $ 280,378 |
Number of Securities - Total | security | 168 | |
Weighted Average Coupon | 3.60% | |
Weighted Average Yield | 3.80% | |
Weighted Average Life (Years) | 6 years 2 months 12 days |
REAL ESTATE AND OTHER SECURIT_8
REAL ESTATE AND OTHER SECURITIES (AS RESTATED) - Schedule of RMBS Designated as AFS in an Unrealized Loss Position - Associated Intent to Sell (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Securities intended 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 that are more likely than not required to be sold | ||
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 | 64,525 | 65,697 |
Amortized Cost Basis After Credit Impairment | 64,591 | 66,377 |
Gross Unrealized Losses, Credit | (10,684) | (10,152) |
Gross Unrealized Losses, Non-Credit | (66) | (680) |
Non-credit impaired securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 205,805 | 214,681 |
Amortized Cost Basis After Credit Impairment | 230,862 | 238,489 |
Gross Unrealized Losses, Credit | 0 | 0 |
Gross Unrealized Losses, Non-Credit | (25,057) | (23,808) |
Total debt securities in an unrealized loss position | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 270,330 | 280,378 |
Amortized Cost Basis After Credit Impairment | 295,453 | 304,866 |
Gross Unrealized Losses, Credit | (10,684) | (10,152) |
Gross Unrealized Losses, Non-Credit | $ (25,123) | $ (24,488) |
REAL ESTATE AND OTHER SECURIT_9
REAL ESTATE AND OTHER SECURITIES (AS RESTATED) - Schedule of Activity Related to the Allowance for Credit Losses on RMBS Designated as AFS (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses on available-for-sale debt securities at the beginning | $ 10,152 |
Additions to the allowance for credit losses on securities for which credit losses were not previously recognized | 21 |
Additions to the allowance for credit losses arising from purchases of AFS debt securities accounted for as purchased financial assets with credit deterioration | 0 |
Reductions for securities sold during the period | 0 |
Reductions in the allowance for credit losses for securities intended to be sold or are more likely than not required to be sold before recovery of its amortized cost basis | 0 |
Additional increases (decreases) to the allowance for credit losses on securities with credit losses, or an allowance recognized in a previous period | 511 |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Allowance for credit losses on available-for-sale debt securities at the end | 10,684 |
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 the beginning | 1,183 |
Additions to the allowance for credit losses on securities for which credit losses were not previously recognized | 21 |
Additions to the allowance for credit losses arising from purchases of AFS debt securities accounted for as purchased financial assets with credit deterioration | 0 |
Reductions for securities sold during the period | 0 |
Reductions in the allowance for credit losses for securities intended to be sold or are more likely than not required to be sold before recovery of its amortized cost basis | 0 |
Additional increases (decreases) to the allowance for credit losses on securities with credit losses, or an allowance recognized in a previous period | 595 |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Allowance for credit losses on available-for-sale debt securities at the end | 1,799 |
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 the beginning | 8,969 |
Additions to the allowance for credit losses on securities for which credit losses were not previously recognized | 0 |
Additions to the allowance for credit losses arising from purchases of AFS debt securities accounted for as purchased financial assets with credit deterioration | 0 |
Reductions for securities sold during the period | 0 |
Reductions in the allowance for credit losses for securities intended to be sold or are more likely than not required to be sold before recovery of its amortized cost basis | 0 |
Additional increases (decreases) to the allowance for credit losses on securities with credit losses, or an allowance recognized in a previous period | (84) |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Allowance for credit losses on available-for-sale debt securities at the end | $ 8,885 |
RESIDENTIAL MORTGAGE LOANS (A_3
RESIDENTIAL MORTGAGE LOANS (AS RESTATED) - Schedule of Residential Mortgage Loans Outstanding by Loan Type (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) loan | Dec. 31, 2023 USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Weighted Average Life (Years) | 3 years 7 months 6 days | |
Investments of consolidated CFEs | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 3,453,537 | |
Carrying Value | $ 3,257,446 | $ 3,038,587 |
Loan Count | loan | 9,397 | |
Weighted Average Yield | 5.60% | |
Weighted Average Life (Years) | 26 years 9 months 18 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 | $ 434,474 | |
Carrying Value | $ 365,398 | 379,044 |
Loan Count | loan | 8,070 | |
Weighted Average Yield | 8.10% | |
Weighted Average Life (Years) | 5 years 2 months 12 days | |
Total residential mortgage loans, HFS, 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 | $ 89,460 | |
Carrying Value | $ 74,415 | 78,877 |
Loan Count | loan | 2,143 | |
Weighted Average Yield | 8.10% | |
Weighted Average Life (Years) | 5 years 6 months | |
Acquired performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 64,851 | |
Carrying Value | $ 54,056 | 57,038 |
Loan Count | loan | 1,841 | |
Weighted Average Yield | 8% | |
Weighted Average Life (Years) | 5 years 3 months 18 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 | $ 228,600 | |
Acquired non-performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | 24,609 | |
Carrying Value | $ 20,359 | 21,839 |
Loan Count | loan | 302 | |
Weighted Average Yield | 8.50% | |
Weighted Average Life (Years) | 6 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 | $ 222,700 | |
Total residential mortgage loans, HFS, at fair value | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | 3,701,355 | |
Carrying Value | $ 3,691,700 | 2,461,865 |
Loan Count | loan | 13,509 | |
Weighted Average Yield | 6.50% | |
Weighted Average Life (Years) | 27 years | |
Acquired performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 542,335 | |
Carrying Value | $ 490,552 | 400,603 |
Loan Count | loan | 2,979 | |
Weighted Average Yield | 5.70% | |
Weighted Average Life (Years) | 15 years 9 months 18 days | |
Acquired non-performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 294,077 | |
Carrying Value | $ 271,316 | 204,950 |
Loan Count | loan | 1,501 | |
Weighted Average Yield | 4.80% | |
Weighted Average Life (Years) | 23 years 1 month 6 days | |
Originated loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 2,864,943 | |
Carrying Value | $ 2,929,832 | 1,856,312 |
Loan Count | loan | 9,029 | |
Weighted Average Yield | 6.80% | |
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 | $ 3,790,815 | |
Carrying Value | $ 3,766,115 | $ 2,540,742 |
Loan Count | loan | 15,652 |
RESIDENTIAL MORTGAGE LOANS (A_4
RESIDENTIAL MORTGAGE LOANS (AS RESTATED) - Schedule of Geographic Distribution of the Residential Mortgage Loans (Details) - Residential Mortgage Loans | Mar. 31, 2024 | Dec. 31, 2023 |
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% |
California | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 10.30% | 8.30% |
Florida | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 9.80% | 9.30% |
Texas | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 8.20% | 9.50% |
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 | 6.30% | 8% |
Georgia | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.80% | 4.90% |
North Carolina | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.70% | 3.20% |
Illinois | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.60% | 3.50% |
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 | 3.60% | 3.90% |
Virginia | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.40% | 3.60% |
Maryland | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.20% | 3.30% |
Other US | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 43.10% | 42.50% |
RESIDENTIAL MORTGAGE LOANS (A_5
RESIDENTIAL MORTGAGE LOANS (AS RESTATED) - Schedule of Difference Between Aggregate UPB and Aggregate Carrying Value of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 364,977 | |
90+ | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 0 | $ 0 |
Carrying Value | 0 | 0 |
Carrying Value Over (Under) UPB | 0 | 0 |
90+ | Residential mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 382,646 | 313,122 |
Carrying Value | 344,488 | 281,556 |
Carrying Value Over (Under) UPB | $ (38,158) | $ (31,566) |
RESIDENTIAL MORTGAGE LOANS (A_6
RESIDENTIAL MORTGAGE LOANS (AS RESTATED) - Schedule of Activity for Residential Mortgage Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance, beginning | [1] | $ 2,540,742 | |
Transfer of loans to REO | (5,917) | $ (6,025) | |
Impairment (loss) reversal | (462) | $ 2,803 | |
Balance, ending | [1] | 3,766,115 | |
Residential Portfolio Segment | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance, beginning | 2,919,786 | ||
Originations | 10,869,683 | ||
Sales | (9,849,739) | ||
Purchases/additional fundings | 502,625 | ||
Proceeds from repayments | (25,213) | ||
Transfer of loans (to) from other assets(A) | (285,529) | ||
Transfer of loans to REO | (3,759) | ||
Impairment (loss) reversal | (207) | ||
Changes in instrument-specific credit risk | (3,865) | ||
Other factors | 7,731 | ||
Balance, ending | 4,131,513 | ||
Loans HFI, 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 | 379,044 | ||
Originations | 0 | ||
Sales | 0 | ||
Purchases/additional fundings | 0 | ||
Proceeds from repayments | (11,854) | ||
Transfer of loans (to) from other assets(A) | 0 | ||
Transfer of loans to REO | (994) | ||
Impairment (loss) reversal | 0 | ||
Changes in instrument-specific credit risk | (3,475) | ||
Other factors | 2,677 | ||
Balance, ending | 365,398 | ||
Residential Mortgage Loans, Held-for-Sale | Residential Portfolio Segment | Loans HFS, at lower of cost or fair value | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance, beginning | 78,877 | ||
Originations | 0 | ||
Sales | 0 | ||
Purchases/additional fundings | 0 | ||
Proceeds from repayments | (3,330) | ||
Transfer of loans (to) from other assets(A) | (364) | ||
Transfer of loans to REO | (561) | ||
Impairment (loss) reversal | (207) | ||
Changes in instrument-specific credit risk | 0 | ||
Other factors | 0 | ||
Balance, ending | 74,415 | ||
Residential Mortgage Loans, Held-for-Sale | Residential Portfolio Segment | Loans HFS, at Fair Value | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance, beginning | 2,461,865 | ||
Originations | 10,869,683 | ||
Sales | (9,849,739) | ||
Purchases/additional fundings | 502,625 | ||
Proceeds from repayments | (10,029) | ||
Transfer of loans (to) from other assets(A) | (285,165) | ||
Transfer of loans to REO | (2,204) | ||
Impairment (loss) reversal | 0 | ||
Changes in instrument-specific credit risk | (390) | ||
Other factors | 5,054 | ||
Balance, ending | $ 3,691,700 | ||
[1] The Company's Consolidated Balance Sheets include assets and liabilities of consolidated variable interest entities (“VIEs”) and certain other consolidated VIEs classified as collateralized financing entities (“CFEs”) that are presented separately and measured under the CFE election. VIE assets can only be used to settle obligations and liabilities of the VIEs. VIE creditors do not have recourse to Rithm Capital Corp. As of March 31, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.8 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.9 billion and $4.7 billion, respectively. See Note 21 for further details. |
RESIDENTIAL MORTGAGE LOANS (A_7
RESIDENTIAL MORTGAGE LOANS (AS RESTATED) - Schedule of Net Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest income: | ||
Loans HFI, at fair value | $ 7,857 | $ 9,509 |
Total interest income | 44,734 | 48,299 |
Interest expense: | ||
Loans HFI, at fair value | 4,224 | 4,670 |
Total interest expense | 42,178 | 48,356 |
Net interest income | 2,556 | (57) |
Loans HFS, at lower of cost or fair value | ||
Interest income: | ||
Loans HFS | 861 | 1,504 |
Interest expense: | ||
Loans HFS | 716 | 907 |
Loans HFS, at fair value | ||
Interest income: | ||
Loans HFS | 36,016 | 37,286 |
Interest expense: | ||
Loans HFS | $ 37,238 | $ 42,779 |
RESIDENTIAL MORTGAGE LOANS (A_8
RESIDENTIAL MORTGAGE LOANS (AS RESTATED) - Schedule of Components of Gain on Originated Residential Mortgage Loans, HFS, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Long Lived Assets Held-for-sale [Line Items] | ||
Gain (loss) on residential mortgage loans originated and sold, net | $ (124,113) | $ (34,314) |
Gain (loss) on settlement of residential mortgage loan origination derivative instruments | (15,524) | 9,904 |
MSRs retained on transfer of residential mortgage loans | 215,939 | 140,513 |
Other | 6,493 | (5,443) |
Realized gain on sale of originated residential mortgage loans, net | 82,795 | 110,660 |
Gain on originated residential mortgage loans, HFS, net | 142,458 | 109,268 |
Loan origination fees and direct loan origination costs | 177,700 | 68,900 |
Change in fair value of interest rate lock commitments | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Change in fair value of derivative instruments | 7,485 | 26,240 |
Change in fair value of derivative instruments | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Change in fair value of derivative instruments | 37,910 | (59,230) |
Change in fair value of residential mortgage loans | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Change in fair value of residential mortgage loans | $ 14,268 | $ 31,598 |
CONSUMER LOANS - Narrative (Det
CONSUMER LOANS - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Consumer Loan Companies | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 53.50% |
CONSUMER LOANS - Schedule of Co
CONSUMER LOANS - Schedule of Consumer Loan Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||
Weighted Average Expected Life (Years) | 3 years 7 months 6 days | |
Consumer Portfolio Segment | ||
Schedule of Equity Method Investments [Line Items] | ||
Unpaid Principal Balance | $ 1,154,642 | $ 1,308,774 |
Carrying Value | $ 1,103,799 | $ 1,274,005 |
Weighted Average Coupon | 11.80% | 12% |
Weighted Average Expected Life (Years) | 1 year 7 months 6 days | 1 year 8 months 12 days |
Consumer Portfolio Segment | SpringCastle | ||
Schedule of Equity Method Investments [Line Items] | ||
Unpaid Principal Balance | $ 246,553 | $ 260,102 |
Carrying Value | $ 267,948 | $ 285,632 |
Weighted Average Coupon | 18.20% | 18.20% |
Weighted Average Expected Life (Years) | 3 years 9 months 18 days | 3 years 8 months 12 days |
Consumer Portfolio Segment | Marcus | ||
Schedule of Equity Method Investments [Line Items] | ||
Unpaid Principal Balance | $ 908,089 | $ 1,048,672 |
Carrying Value | $ 835,851 | $ 988,373 |
Weighted Average Coupon | 10.10% | 10.50% |
Weighted Average Expected Life (Years) | 1 year | 1 year 2 months 12 days |
CONSUMER LOANS - Schedule of Pa
CONSUMER LOANS - Schedule of Past Due Status and Difference Between Aggregate UPB and Aggregate Carrying Value of Consumer Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | $ 364,977 | |
90+ | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 0 | $ 0 |
Carrying Value | 0 | 0 |
Carrying Value Over (Under) UPB | 0 | 0 |
Consumer Portfolio Segment | Current | SpringCastle | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 241,454 | 255,441 |
Carrying Value | 262,483 | 280,577 |
Carrying Value Over (Under) UPB | 21,029 | 25,136 |
Consumer Portfolio Segment | Current | Marcus | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 842,297 | 1,014,404 |
Carrying Value | 775,293 | 956,076 |
Carrying Value Over (Under) UPB | (67,004) | (58,328) |
Consumer Portfolio Segment | 90+ | SpringCastle | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 5,099 | 4,661 |
Carrying Value | 5,465 | 5,055 |
Carrying Value Over (Under) UPB | 366 | 394 |
Consumer Portfolio Segment | 90+ | Marcus | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 65,792 | 34,268 |
Carrying Value | 60,558 | 32,297 |
Carrying Value Over (Under) UPB | (5,234) | (1,971) |
Consumer Portfolio Segment | Past Due | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 1,154,642 | 1,308,774 |
Carrying Value | 1,103,799 | 1,274,005 |
Carrying Value Over (Under) UPB | (50,843) | (34,769) |
Consumer Portfolio Segment | Past Due | SpringCastle | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 246,553 | 260,102 |
Carrying Value | 267,948 | 285,632 |
Carrying Value Over (Under) UPB | 21,395 | 25,530 |
Consumer Portfolio Segment | Past Due | Marcus | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 908,089 | 1,048,672 |
Carrying Value | 835,851 | 988,373 |
Carrying Value Over (Under) UPB | $ (72,238) | $ (60,299) |
CONSUMER LOANS - Schedule of Ac
CONSUMER LOANS - Schedule of Activities Related to the Carrying Value of Consumer Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Loans Receivable [Roll Forward] | ||
Proceeds from repayments | $ (12,187) | $ (8,272) |
Accretion of loan discount and premium amortization, net | 21,224 | $ 12,766 |
Changes in instrument-specific credit risk | 0 | |
Other factors | 0 | |
Consumer Portfolio Segment | Performing loans | ||
Loans Receivable [Roll Forward] | ||
Beginning balance | 1,274,005 | |
Purchases | 0 | |
Additional fundings | 4,113 | |
Proceeds from repayments | (154,354) | |
Accretion of loan discount and premium amortization, net | 10,152 | |
Changes in instrument-specific credit risk | (22,961) | |
Other factors | (7,156) | |
Ending balance | $ 1,103,799 |
SINGLE-FAMILY RENTAL PROPERTI_3
SINGLE-FAMILY RENTAL PROPERTIES - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) property | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Real Estate [Line Items] | |||
Capitalized acquisition costs | $ 7,400 | $ 7,500 | |
SFR Properties HFS | |||
Real Estate [Line Items] | |||
Transfer to HFS | property | 1 | ||
Accumulated depreciation | $ 82 | ||
Single Family | |||
Real Estate [Line Items] | |||
Transfer to HFS | property | 0 | ||
Accumulated depreciation | $ 7,742 | $ 6,900 | |
Single Family | Minimum | |||
Real Estate [Line Items] | |||
Lease term | 1 year | ||
Single Family | Maximum | |||
Real Estate [Line Items] | |||
Lease term | 2 years |
SINGLE-FAMILY RENTAL PROPERTI_4
SINGLE-FAMILY RENTAL PROPERTIES - Schedule of Net Carrying Value of Investments in SFR Properties (Details) - Single Family - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Real Estate [Line Items] | ||
Land | $ 185,446 | $ 183,359 |
Building | 741,785 | 733,437 |
Capital improvements | 141,288 | 138,869 |
Total gross investment in SFR properties | 1,068,519 | 1,055,665 |
Accumulated depreciation | (61,347) | (53,737) |
Investment in SFR properties, net | $ 1,007,172 | $ 1,001,928 |
SINGLE-FAMILY RENTAL PROPERTI_5
SINGLE-FAMILY RENTAL PROPERTIES - Schedule of Activity Related to the Net Carrying Value of Investments in SFR Properties (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | $ 1,001,928 | |
Ending balance | 1,007,172 | |
SFR Properties HFI | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 1,000,357 | |
Acquisitions and capital improvements | 15,249 | |
Transfers to HFS | (150) | |
Dispositions | (1,140) | |
Accumulated depreciation | (7,660) | |
Ending balance | 1,006,656 | |
SFR Properties HFS | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 1,571 | |
Acquisitions and capital improvements | 0 | |
Transfers to HFS | 150 | |
Dispositions | (1,123) | |
Accumulated depreciation | (82) | |
Ending balance | 516 | |
Single Family | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 1,001,928 | |
Acquisitions and capital improvements | 15,249 | |
Transfers to HFS | 0 | |
Dispositions | (2,263) | |
Accumulated depreciation | (7,742) | $ (6,900) |
Ending balance | $ 1,007,172 |
SINGLE-FAMILY RENTAL PROPERTI_6
SINGLE-FAMILY RENTAL PROPERTIES - Schedule of Future Minimum Rental Revenues Under Existing Leases on SFR Properties (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Real Estate [Line Items] | |
Total | $ 19,300 |
Single Family | |
Real Estate [Line Items] | |
Remainder of 2024 | 36,521 |
2025 and thereafter | 9,217 |
Total | $ 45,738 |
SINGLE-FAMILY RENTAL PROPERTI_7
SINGLE-FAMILY RENTAL PROPERTIES - Schedule of Activity of SFR Portfolio by Units (Details) | 3 Months Ended |
Mar. 31, 2024 property | |
SFR Properties HFI | |
Real Estate Investment Property, Net [Roll Forward] | |
Beginning balance | 3,882 |
Acquisition of SFR units | 48 |
Transfer to HFS | (1) |
Disposition of SFR units | (4) |
Ending balance | 3,925 |
SFR Properties HFS | |
Real Estate Investment Property, Net [Roll Forward] | |
Beginning balance | 6 |
Acquisition of SFR units | 0 |
Transfer to HFS | 1 |
Disposition of SFR units | (4) |
Ending balance | 3 |
Single Family | |
Real Estate Investment Property, Net [Roll Forward] | |
Beginning balance | 3,888 |
Acquisition of SFR units | 48 |
Transfer to HFS | 0 |
Disposition of SFR units | (8) |
Ending balance | 3,928 |
MORTGAGE LOANS RECEIVABLE (AS_3
MORTGAGE LOANS RECEIVABLE (AS RESTATED) - Narrative (Details) $ in Millions | Aug. 24, 2023 USD ($) |
Bridge | Mortgage loans receivable | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing receivable, before allowance for credit loss, acquired | $ 148.4 |
MORTGAGE LOANS RECEIVABLE (AS_4
MORTGAGE LOANS RECEIVABLE (AS RESTATED) - Schedule of Mortgage Loans Receivable Outstanding by Loan Type (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) loan | Dec. 31, 2023 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 392,974 | $ 429,550 |
Mortgage loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 2,384,744 | |
% of Portfolio | 100% | |
Loan Count | loan | 1,397 | |
% of Portfolio | 100% | |
Weighted Average Yield | 10.40% | |
Weighted Average Original Life (Months) | 20 years 6 months | |
Mortgage loans receivable | Consolidated Entity, Excluding Consolidated VIE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 2,042,913 | $ 1,879,319 |
Mortgage loans receivable | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | 341,831 | |
Mortgage loans receivable | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 1,047,688 | |
% of Portfolio | 43.90% | |
Loan Count | loan | 365 | |
% of Portfolio | 26.10% | |
Weighted Average Yield | 10.90% | |
Weighted Average Original Life (Months) | 16 years 9 months 18 days | |
Weighted Average Committed Loan Balance to Value, LTC | 73.40% | |
Weighted Average Committed Loan Balance to Value, LTARV | 62.30% | |
Mortgage loans receivable | Construction | Consolidated Entity, Excluding Consolidated VIE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 882,159 | |
Mortgage loans receivable | Construction | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | 165,529 | |
Mortgage loans receivable | Bridge | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 1,037,056 | |
% of Portfolio | 43.50% | |
Loan Count | loan | 638 | |
% of Portfolio | 45.70% | |
Weighted Average Yield | 9.90% | |
Weighted Average Original Life (Months) | 27 years 2 months 12 days | |
Weighted Average Committed Loan Balance to Value | 68.10% | |
Mortgage loans receivable | Bridge | Consolidated Entity, Excluding Consolidated VIE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 890,610 | |
Mortgage loans receivable | Bridge | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | 146,446 | |
Mortgage loans receivable | Renovation | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 300,000 | |
% of Portfolio | 12.60% | |
Loan Count | loan | 394 | |
% of Portfolio | 28.20% | |
Weighted Average Yield | 10.30% | |
Weighted Average Original Life (Months) | 12 years 7 months 6 days | |
Weighted Average Committed Loan Balance to Value, LTC | 81.20% | |
Weighted Average Committed Loan Balance to Value, LTARV | 68.40% | |
Mortgage loans receivable | Renovation | Consolidated Entity, Excluding Consolidated VIE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 270,144 | |
Mortgage loans receivable | Renovation | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 29,856 |
MORTGAGE LOANS RECEIVABLE (AS_5
MORTGAGE LOANS RECEIVABLE (AS RESTATED) - Schedule of Activity for Mortgage Loans Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Financing Receivable [Roll Forward] | ||
Beginning balance | $ 429,550 | |
Paydowns and payoffs | (37,670) | |
Transfer of loans to REO | (5,917) | $ (6,025) |
Ending balance | 392,974 | |
Mortgage loans receivable | ||
Financing Receivable [Roll Forward] | ||
Ending balance | 2,384,744 | |
Mortgage loans receivable | Consolidated Entity, Excluding Consolidated VIE | ||
Financing Receivable [Roll Forward] | ||
Beginning balance | 1,879,319 | |
Initial loan advances | 468,804 | |
Construction holdbacks and draws | 180,893 | |
Paydowns and payoffs | (423,269) | |
Fair value adjustments | 14,873 | |
Purchased loans discount amortization | 588 | |
Transfer of loans to REO | (840) | |
Transfers from (to) assets of consolidated CFEs | (77,455) | |
Ending balance | $ 2,042,913 |
MORTGAGE LOANS RECEIVABLE (AS_6
MORTGAGE LOANS RECEIVABLE (AS RESTATED) - Schedule of Difference Between Aggregate UPB and Aggregate Carrying Value of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 364,977 | |
90+ | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 0 | $ 0 |
Carrying Value | 0 | 0 |
Carrying Value Over (Under) UPB | 0 | 0 |
Mortgage loans receivable | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 1,987,674 | 1,838,935 |
Carrying Value | 2,003,046 | 1,837,513 |
Carrying Value Over (Under) UPB | 15,372 | (1,422) |
Mortgage loans receivable | 90+ | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 41,264 | 41,869 |
Carrying Value | 39,867 | 41,806 |
Carrying Value Over (Under) UPB | $ (1,397) | $ (63) |
MORTGAGE LOANS RECEIVABLE (AS_7
MORTGAGE LOANS RECEIVABLE (AS RESTATED) - Schedule of Geographic Distribution of the Underlying Mortgage Loans Receivable (Details) - Mortgage loans receivable - Geographic Concentration Risk - Loan Origination Commitments | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
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 | 49.10% | 47.80% |
Washington | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 7% | 7.90% |
Florida | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 6.80% | 7.80% |
New York | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 6.70% | 6.70% |
Georgia | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 5.10% | 2.50% |
Arizona | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 4.10% | 4.80% |
Virginia | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 3.80% | 4.10% |
Illinois | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 3.30% | 2.70% |
Texas | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 2.60% | 2.70% |
Colorado | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 2.30% | 3.10% |
Other US | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 9.20% | 9.90% |
CASH, CASH EQUIVALENTS AND RE_3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (AS RESTATED) - Schedule of Reconciliation of Cash, Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Cash and cash equivalents | $ 1,136,437 | |||||
Restricted cash | 421,557 | $ 409,896 | ||||
Cash, cash equivalents and restricted cash | 1,557,994 | 1,697,095 | $ 1,815,649 | $ 1,629,328 | ||
Consolidated Entity, Excluding Consolidated VIE | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Cash and cash equivalents | [1] | 1,136,437 | 1,287,199 | |||
Restricted cash | 382,939 | [1] | 378,048 | |||
Variable Interest Entity, Primary Beneficiary | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Cash and cash equivalents | 23,532 | 23,540 | ||||
Restricted cash | $ 38,618 | $ 31,848 | ||||
[1] The Company's Consolidated Balance Sheets include assets and liabilities of consolidated variable interest entities (“VIEs”) and certain other consolidated VIEs classified as collateralized financing entities (“CFEs”) that are presented separately and measured under the CFE election. VIE assets can only be used to settle obligations and liabilities of the VIEs. VIE creditors do not have recourse to Rithm Capital Corp. As of March 31, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.8 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.9 billion and $4.7 billion, respectively. See Note 21 for further details. |
CASH, CASH EQUIVALENTS AND RE_4
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (AS RESTATED) - Schedule of Reconciliation of Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash | $ 421,557 | $ 409,896 |
Operating Segments | Investment Portfolio | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash | 109,809 | 150,432 |
Operating Segments | Origination and Servicing | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash | 237,186 | 195,490 |
Operating Segments | Mortgage Loans Receivable | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash | 55,458 | 37,805 |
Operating Segments | Asset Management | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash | $ 19,104 | $ 26,169 |
OTHER ASSETS AND LIABILITIES _3
OTHER ASSETS AND LIABILITIES (AS RESTATED) - Schedule of Other Assets and Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Total | Total | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | Accrued expenses and other liabilities | |
Other Assets | |||
Derivative and hedging assets (Note 18) | $ 39,555 | $ 28,080 | |
Equity investments | 201,624 | 173,882 | |
Excess MSRs, at fair value (Note 5) | 255,111 | 271,150 | |
Goodwill | 131,857 | 131,857 | |
Income and fees receivable | 49,829 | 59,134 | |
Intangible assets (Note 16) | 368,967 | 387,920 | |
Loans receivable, at fair value(C) | 27,997 | 31,323 | |
Margin receivable, net | 52,316 | 75,947 | |
Notes receivable, at fair value | 364,977 | 398,227 | |
Operating lease right-of-use assets (Note 17) | 96,706 | 104,207 | |
Prepaid expenses | 65,463 | 62,513 | |
Principal and interest receivable | 196,667 | 168,517 | |
Property and equipment | 39,010 | 40,038 | |
Real Estate Owned | 29,447 | 15,507 | |
Servicer advance investments, at fair value (Note 7) | 374,511 | 376,881 | |
Servicing fee receivables | 145,052 | 156,777 | |
Warrants, at fair value | 18,073 | 16,599 | |
Other assets | 203,355 | 182,880 | |
Total | [1] | 3,111,686 | 3,144,823 |
Accrued Expenses and Other Liabilities | |||
Accounts payable | 117,827 | 165,144 | |
Accrued compensation and benefits | 112,002 | 290,464 | |
Deferred tax liability | 898,040 | 801,857 | |
Derivative liabilities (Note 18) | 33,586 | 51,765 | |
Escheat payable | 161,717 | 169,914 | |
Interest payable | 149,332 | 166,620 | |
Lease liability (Note 18) | 151,493 | 159,236 | |
Unearned income and fees | 38,993 | 37,468 | |
Other liabilities | 221,537 | 223,293 | |
Accrued expenses and other liabilities | [1] | 1,884,527 | 2,065,761 |
Related Party | |||
Other Assets | |||
Other receivables | 22,147 | 32,319 | |
Nonrelated Party | |||
Other Assets | |||
Other receivables | 144,072 | 152,046 | |
Genesis | |||
Other Assets | |||
Deferred tax asset | 284,950 | 279,019 | |
Accrued Expenses and Other Liabilities | |||
Unearned income and fees | $ 38,993 | $ 37,468 | |
[1] The Company's Consolidated Balance Sheets include assets and liabilities of consolidated variable interest entities (“VIEs”) and certain other consolidated VIEs classified as collateralized financing entities (“CFEs”) that are presented separately and measured under the CFE election. VIE assets can only be used to settle obligations and liabilities of the VIEs. VIE creditors do not have recourse to Rithm Capital Corp. As of March 31, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.8 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.9 billion and $4.7 billion, respectively. See Note 21 for further details. |
OTHER ASSETS AND LIABILITIES _4
OTHER ASSETS AND LIABILITIES (AS RESTATED) - Schedule of Activity Related to the Carrying Value of Investments in REO (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Real Estate Owned [Roll Forward] | |
Beginning balance | $ 15,507 |
Purchases | 5,763 |
Property received in satisfaction of loan | 14,154 |
Sales | (6,254) |
Valuation (provision) reversal | 277 |
Ending balance | 29,447 |
Residential Mortgage Loans | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Unpaid principal balance | 60,700 |
Mortgage Receivable | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Unpaid principal balance | $ 31,000 |
OTHER ASSETS AND LIABILITIES _5
OTHER ASSETS AND LIABILITIES (AS RESTATED) - Schedule of Notes and Loans Receivable (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Financing Receivable [Roll Forward] | |
Beginning balance | $ 429,550 |
Fundings | 0 |
Payment in Kind | 1,094 |
Proceeds from repayments | (37,670) |
Changes in instrument-specific credit risk | 0 |
Other factors | 0 |
Ending balance | 392,974 |
Notes Receivable | |
Financing Receivable [Roll Forward] | |
Beginning balance | 398,227 |
Fundings | 0 |
Payment in Kind | 0 |
Proceeds from repayments | (33,250) |
Changes in instrument-specific credit risk | 0 |
Other factors | 0 |
Ending balance | 364,977 |
Loans Receivable | |
Financing Receivable [Roll Forward] | |
Beginning balance | 31,323 |
Fundings | 0 |
Payment in Kind | 1,094 |
Proceeds from repayments | (4,420) |
Changes in instrument-specific credit risk | 0 |
Other factors | 0 |
Ending balance | $ 27,997 |
OTHER ASSETS AND LIABILITIES _6
OTHER ASSETS AND LIABILITIES (AS RESTATED) - Schedule of Difference Between Aggregate UPB and Aggregate Carrying Value of Notes and Loans Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Carrying Value | $ 364,977 | |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
UPB | 531,394 | $ 565,786 |
Carrying Value | 392,974 | 429,550 |
Carrying Value Over (Under) UPB | (138,420) | (136,236) |
90+ | ||
Financing Receivable, Past Due [Line Items] | ||
UPB | 0 | 0 |
Carrying Value | 0 | 0 |
Carrying Value Over (Under) UPB | $ 0 | $ 0 |
EXPENSES, REALIZED AND UNREAL_3
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES), NET AND OTHER (AS RESTATED) - Schedule of Other Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule Of Other Income [Line Items] | ||
Total other revenues | $ 1,184,758 | $ 824,788 |
Property and maintenance | ||
Schedule Of Other Income [Line Items] | ||
Total other revenues | 32,380 | 33,637 |
Rental | ||
Schedule Of Other Income [Line Items] | ||
Total other revenues | 18,949 | 18,123 |
Other | ||
Schedule Of Other Income [Line Items] | ||
Total other revenues | 7,019 | 6,384 |
Other revenues | ||
Schedule Of Other Income [Line Items] | ||
Total other revenues | $ 58,348 | $ 58,144 |
EXPENSES, REALIZED AND UNREAL_4
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES), NET AND OTHER (AS RESTATED) - Schedule of General and Administrative Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | ||
Legal and professional | $ 21,489 | $ 12,755 |
Loan origination | 15,435 | 11,757 |
Occupancy | 17,048 | 18,366 |
Subservicing | 19,428 | 35,256 |
Loan servicing | 5,591 | 3,300 |
Property and maintenance | 32,264 | 24,035 |
Information technology | 41,202 | 34,968 |
Other | 44,737 | 27,042 |
Total general and administrative expenses | $ 197,194 | $ 167,479 |
EXPENSES, REALIZED AND UNREAL_5
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES), NET AND OTHER (AS RESTATED) - Schedule of Components of Other Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | ||
Real estate and other securities | $ (102,963) | $ 83,851 |
Residential mortgage loans and REO | 3,526 | 18,097 |
Derivative and hedging instruments | 41,932 | (151,006) |
Notes and bonds payable | 226 | (2,500) |
Consolidated CFEs | 16,412 | 12,244 |
Other | (3,979) | (26,591) |
Realized and unrealized gains (losses), net | (44,846) | (65,905) |
Other income (loss), net | 7,926 | (25,166) |
Total other income (loss) | $ (36,920) | $ (91,071) |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Carrying Value of Goodwill by Reportable Segment (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 131,857 |
Goodwill acquired | 0 |
Accumulated impairment loss | 0 |
Ending balance | 131,857 |
Origination and Servicing | |
Goodwill [Roll Forward] | |
Beginning balance | 24,376 |
Goodwill acquired | 0 |
Accumulated impairment loss | 0 |
Ending balance | 24,376 |
Investment Portfolio | |
Goodwill [Roll Forward] | |
Beginning balance | 5,092 |
Goodwill acquired | 0 |
Accumulated impairment loss | 0 |
Ending balance | 5,092 |
Mortgage Loans Receivable | |
Goodwill [Roll Forward] | |
Beginning balance | 55,731 |
Goodwill acquired | 0 |
Accumulated impairment loss | 0 |
Ending balance | 55,731 |
Asset Management | |
Goodwill [Roll Forward] | |
Beginning balance | 46,658 |
Goodwill acquired | 0 |
Accumulated impairment loss | 0 |
Ending balance | $ 46,658 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Acquired Identifiable Intangible Assets (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 481,130,000 | $ 481,130,000 |
Accumulated amortization | 112,163,000 | 93,210,000 |
Intangible Assets, Net | 368,967,000 | 387,920,000 |
Impairment loss on intangible assets | $ 0 | |
Management contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 10 years | |
Gross Intangible Assets | $ 275,000,000 | 275,000,000 |
Accumulated amortization | 10,240,000 | 3,388,000 |
Intangible Assets, Net | 264,760,000 | 271,612,000 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 57,949,000 | 57,949,000 |
Accumulated amortization | 27,424,000 | 17,834,000 |
Intangible Assets, Net | $ 30,525,000 | 40,115,000 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 3 years | |
Customer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 9 years | |
Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 137,922,000 | 137,922,000 |
Accumulated amortization | 69,361,000 | 67,145,000 |
Intangible Assets, Net | 68,561,000 | 70,777,000 |
Indefinite-lived intangible assets | $ 21,400,000 | 21,400,000 |
Purchased technology | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 3 years | |
Purchased technology | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 5 years | |
Trademarks / Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 10,259,000 | 10,259,000 |
Accumulated amortization | 5,138,000 | 4,843,000 |
Intangible Assets, Net | 5,121,000 | 5,416,000 |
Indefinite-lived intangible assets | $ 1,900,000 | $ 1,900,000 |
Trademarks / Trade names | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 1 year | |
Trademarks / Trade names | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 5 years |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Expected Future Amortization Expense for Acquired Intangible Assets (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2024 | $ 57,294 |
2025 | 44,165 |
2026 | 37,657 |
2027 | 33,806 |
2028 | 32,305 |
2029 and thereafter | 140,499 |
Intangible assets, net | $ 345,726 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Lessee, Lease, Description [Line Items] | |||
Rent expense, net of sublease income | $ 11.9 | $ 12.2 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Increase (decrease) in other assets | Increase (decrease) in other assets | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities (includes $33,586 and $51,765 at fair value, respectively) | Accrued expenses and other liabilities (includes $33,586 and $51,765 at fair value, respectively) | |
Sublease rentals | $ 19.3 | ||
Collateral Pledged | |||
Lessee, Lease, Description [Line Items] | |||
Lease obligations | $ 6.2 |
LEASES - Schedule of Future Com
LEASES - Schedule of Future Commitments for Non-Cancelable Operating and Finance Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Leases | ||
Remainder of 2024 | $ 31,076 | |
2025 | 33,465 | |
2026 | 26,992 | |
2027 | 27,109 | |
2028 | 23,818 | |
2029 and thereafter | 37,271 | |
Total remaining undiscounted lease payments | 179,731 | |
Less: imputed interest | 28,834 | |
Total remaining discounted lease payments | 150,897 | |
Finance Leases | ||
Remainder of 2024 | 0 | |
2025 | 228 | |
2026 | 228 | |
2027 | 228 | |
2028 | 0 | |
2029 and thereafter | 0 | |
Total remaining undiscounted lease payments | 684 | |
Less: imputed interest | 88 | |
Total remaining discounted lease payments | 596 | |
Total | ||
Remainder of 2024 | 31,076 | |
2025 | 33,693 | |
2026 | 27,220 | |
2027 | 27,337 | |
2028 | 23,818 | |
2029 and thereafter | 37,271 | |
Total remaining undiscounted lease payments | 180,415 | |
Less: imputed interest | 28,922 | |
Total remaining discounted lease payments | $ 151,493 | $ 159,236 |
LEASES - Schedule of Other Info
LEASES - Schedule of Other Information Related to Leases (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Operating leases, weighted average remaining lease term (years) | 5 years 8 months 12 days | 5 years 9 months 18 days |
Finance leases, weighted average remaining lease term (years) | 3 years 3 months 18 days | 3 years 6 months |
Operating leases, weighted average discount rate | 6.20% | 6.20% |
Finance leases, weighted average discount rate | 7.90% | 7.90% |
LEASES - Schedule of Supplement
LEASES - Schedule of Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows - operating leases | $ 11,411 | $ 8,276 |
Operating cash flows - finance leases | 4 | 0 |
Finance cash flows - finance leases | 224 | 0 |
Supplemental non-cash information on lease liabilities arising from obtaining ROU assets: | ||
ROU assets obtained in exchange for new operating lease liabilities | $ 126 | $ 0 |
DERIVATIVES AND HEDGING (AS R_3
DERIVATIVES AND HEDGING (AS RESTATED) - Schedule of Derivatives and Hedges are Recorded at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Derivative [Line Items] | ||
Derivative and hedging assets | $ 39,555 | $ 28,080 |
Derivative and hedging liabilities | 33,586 | 51,765 |
Derivative liabilities, other commitments | 25,500 | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative and hedging assets | 0 | 106 |
Derivative assets (liabilities), variation margin accounts | 500 | 342,000 |
IRLCs | ||
Derivative [Line Items] | ||
Derivative and hedging assets | 32,063 | 26,482 |
Derivative and hedging liabilities | 835 | 2,678 |
TBAs | ||
Derivative [Line Items] | ||
Derivative and hedging assets | 7,492 | 1,492 |
Derivative and hedging liabilities | 15,654 | 49,087 |
Other commitments | ||
Derivative [Line Items] | ||
Derivative and hedging liabilities | $ 17,097 | $ 0 |
DERIVATIVES AND HEDGING (AS R_4
DERIVATIVES AND HEDGING (AS RESTATED) - Schedule of Derivatives and Hedges of Notional Amounts (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 700,000 | $ 7,979,988 |
Interest rate swaps | TBAs, short position | ||
Derivative [Line Items] | ||
Notional amount | $ 0 | $ 0 |
Derivative, cap interest rate | 0% | 0% |
Weighted average maturity | 0 months | 0 months |
Interest rate swaps | TBAs, long position | ||
Derivative [Line Items] | ||
Notional amount | $ 700,000 | $ 8,000,000 |
Derivative, cap interest rate | 4.60% | 2.50% |
Weighted average maturity | 32 months | 32 months |
IRLCs | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 3,734,933 | $ 2,757,060 |
TBAs | TBAs, short position | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | 7,918,900 | 6,013,100 |
Other commitments | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | $ 23,021 | $ 0 |
DERIVATIVES AND HEDGING (AS R_5
DERIVATIVES AND HEDGING (AS RESTATED) - Schedule of Gain (Loss) on Derivatives and Hedging (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative [Line Items] | ||
Total gain (loss) | $ 87,327 | $ (183,996) |
Gain (loss) on settlement of residential mortgage loan | $ (15,524) | $ 9,904 |
Gain on originated residential mortgage loans, held-for-sale, net | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate |
Total gain (loss) | $ 45,395 | $ (32,990) |
Realized and unrealized gains (losses), net | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Realized and unrealized gains (losses), net | Realized and unrealized gains (losses), net |
Total gain (loss) | $ 41,932 | $ (151,006) |
IRLCs | ||
Derivative [Line Items] | ||
Total gain (loss) | 7,485 | 26,240 |
TBAs | Gain on originated residential mortgage loans, held-for-sale, net | ||
Derivative [Line Items] | ||
Total gain (loss) | 37,910 | (57,983) |
TBAs | Realized and unrealized gains (losses), net | ||
Derivative [Line Items] | ||
Total gain (loss) | 1,523 | (7,381) |
Interest rate swaps | Gain on originated residential mortgage loans, held-for-sale, net | ||
Derivative [Line Items] | ||
Total gain (loss) | 0 | (1,247) |
Interest rate swaps | Realized and unrealized gains (losses), net | ||
Derivative [Line Items] | ||
Total gain (loss) | 29,161 | (143,625) |
Treasury short sales | ||
Derivative [Line Items] | ||
Total gain (loss) | 28,345 | 0 |
Other commitments | ||
Derivative [Line Items] | ||
Total gain (loss) | $ (17,097) | $ 0 |
DERIVATIVES AND HEDGING (AS R_6
DERIVATIVES AND HEDGING (AS RESTATED) - Schedule of US Treasury Short Sales (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Security Sold Short [Line Items] | |
Face | $ 2,985,000 |
Fair value | 2,992,477 |
Realized & unrealized gain (loss) | 28,345 |
Reverse Repurchase Agreements | 3,040,756 |
Net asset (liability) | 48,279 |
Short sale liabilities | |
Security Sold Short [Line Items] | |
Face | 1,485,000 |
Sale proceeds | 1,484,652 |
Fair value | 1,487,320 |
Unrealized gain (loss) position | (2,668) |
Realized & unrealized gain (loss) | 23,997 |
Reverse Repurchase Agreements | 1,492,268 |
Net asset (liability) | 4,948 |
Covered short sale liabilities | |
Security Sold Short [Line Items] | |
Face | 1,500,000 |
Fair value | 1,505,157 |
Realized & unrealized gain (loss) | 4,348 |
Reverse Repurchase Agreements | 1,548,488 |
Net asset (liability) | $ 43,331 |
DEBT OBLIGATIONS (AS RESTATED_2
DEBT OBLIGATIONS (AS RESTATED) - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 31,642,766 | |
Carrying Value | $ 31,335,078 | $ 26,076,708 |
Weighted Average Funding Cost | 6.10% | |
Weighted Average Life (Years) | 3 years 7 months 6 days | |
MSR purchase price holdback | $ 149,332 | 166,620 |
Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 18,278,569 | |
Carrying Value | $ 18,271,046 | 12,561,283 |
Weighted Average Funding Cost | 6% | |
Weighted Average Life (Years) | 7 months 6 days | |
MSR purchase price holdback | $ 134,300 | |
Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 9,802,163 | |
Carrying Value | $ 9,721,315 | 10,360,188 |
Weighted Average Funding Cost | 6.90% | |
Weighted Average Life (Years) | 2 years | |
Notes Payable of Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 3,562,034 | |
Carrying Value | $ 3,342,717 | 3,155,237 |
Weighted Average Funding Cost | 4.40% | |
Weighted Average Life (Years) | 23 years 2 months 12 days | |
Warehouse Credit Facilities-Residential Mortgage Loans | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 3,087,260 | |
Carrying Value | $ 3,087,196 | 1,940,038 |
Weighted Average Funding Cost | 6.90% | |
Weighted Average Life (Years) | 8 months 12 days | |
Face amount of debt at fixed rate | $ 224,700 | |
Interest rate | 5% | |
Warehouse Credit Facilities-Residential Mortgage Loans | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 28 years 9 months 18 days | |
Outstanding Face | $ 3,514,478 | |
Amortized Cost Basis of Collateral | 3,522,074 | |
Carrying Value | 3,438,132 | |
Warehouse Credit Facilities - Mortgage Loans Receivable | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 1,457,135 | |
Carrying Value | $ 1,457,135 | 1,337,010 |
Weighted Average Funding Cost | 8.10% | |
Weighted Average Life (Years) | 1 year 6 months | |
Warehouse Credit Facilities - Mortgage Loans Receivable | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 1 year 2 months 12 days | |
Outstanding Face | $ 1,749,029 | |
Amortized Cost Basis of Collateral | 1,761,010 | |
Carrying Value | 1,761,010 | |
Agency RMBS or US Treasuries | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 12,557,569 | |
Carrying Value | $ 12,557,569 | 8,152,469 |
Weighted Average Funding Cost | 5.40% | |
Weighted Average Life (Years) | 4 months 24 days | |
Agency RMBS or US Treasuries | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 6 years 9 months 18 days | |
Outstanding Face | $ 12,962,940 | |
Amortized Cost Basis of Collateral | 12,773,350 | |
Carrying Value | 12,817,767 | |
Non-Agency RMBS | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 645,381 | |
Carrying Value | $ 645,381 | 610,189 |
Weighted Average Funding Cost | 7.40% | |
Weighted Average Life (Years) | 7 months 6 days | |
Non-Agency RMBS | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 7 years | |
Outstanding Face | $ 15,812,493 | |
Amortized Cost Basis of Collateral | 974,002 | |
Carrying Value | 1,002,578 | |
SFR properties | ||
Debt Instrument [Line Items] | ||
Carrying Value | 819,526 | 809,708 |
SFR properties | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 27,914 | |
Carrying Value | $ 27,914 | 20,534 |
Weighted Average Funding Cost | 8.20% | |
Weighted Average Life (Years) | 8 months 12 days | |
SFR properties | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Amortized Cost Basis of Collateral | $ 60,054 | |
Carrying Value | 60,054 | |
SFR properties | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 832,972 | |
Carrying Value | $ 791,612 | 789,174 |
Weighted Average Funding Cost | 4.10% | |
Weighted Average Life (Years) | 3 years 1 month 6 days | |
SFR properties | Secured Notes and Bonds Payable | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.50% | |
SFR properties | Secured Notes and Bonds Payable | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.10% | |
SFR properties | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Amortized Cost Basis of Collateral | $ 946,603 | |
Carrying Value | 946,603 | |
CLOs | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 179,858 | |
Carrying Value | $ 178,527 | 183,947 |
Weighted Average Funding Cost | 6.30% | |
Weighted Average Life (Years) | 8 years 8 months 12 days | |
CLOs | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 8 years 8 months 12 days | |
Outstanding Face | $ 180,890 | |
Amortized Cost Basis of Collateral | 180,890 | |
Carrying Value | 178,475 | |
CLOs | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 19,364 | |
Carrying Value | $ 19,331 | 30,258 |
Weighted Average Funding Cost | 6.80% | |
Weighted Average Life (Years) | 7 years 3 months 18 days | |
CLOs | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 7 years 3 months 18 days | |
Outstanding Face | $ 23,013 | |
Amortized Cost Basis of Collateral | 19,541 | |
Carrying Value | 22,099 | |
Commercial Notes Receivable | ||
Debt Instrument [Line Items] | ||
Carrying Value | 317,324 | 317,096 |
Commercial Notes Receivable | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 323,452 | |
Carrying Value | $ 317,324 | 317,096 |
Weighted Average Funding Cost | 6.50% | |
Weighted Average Life (Years) | 8 months 12 days | |
Commercial Notes Receivable | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Outstanding Face | $ 429,240 | |
Amortized Cost Basis of Collateral | 364,977 | |
Carrying Value | 364,977 | |
Excess MSRs | ||
Debt Instrument [Line Items] | ||
Carrying Value | 2,594,291 | 2,713,933 |
Excess MSRs | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 169,603 | |
Carrying Value | $ 169,603 | 181,522 |
Weighted Average Funding Cost | 8.80% | |
Weighted Average Life (Years) | 1 year 4 months 24 days | |
Excess MSRs | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 5 years 9 months 18 days | |
Outstanding Face | $ 58,577,476 | |
Amortized Cost Basis of Collateral | 226,825 | |
Carrying Value | 261,420 | |
MSRs | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 4,458,873 | |
Carrying Value | $ 4,452,608 | 4,800,728 |
Weighted Average Funding Cost | 7.40% | |
Weighted Average Life (Years) | 1 year 8 months 12 days | |
MSRs | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 7 years 7 months 6 days | |
Outstanding Face | $ 521,148,213 | |
Amortized Cost Basis of Collateral | 6,480,406 | |
Carrying Value | 8,657,165 | |
Servicer Advance Investments | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 270,705 | |
Carrying Value | $ 270,705 | 278,042 |
Weighted Average Funding Cost | 7.30% | |
Weighted Average Life (Years) | 1 year 10 months 24 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 | $ 313,271 | |
Amortized Cost Basis of Collateral | 352,275 | |
Carrying Value | 374,511 | |
Servicer Advances | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 2,154,019 | |
Carrying Value | $ 2,153,983 | 2,254,369 |
Weighted Average Funding Cost | 7.20% | |
Weighted Average Life (Years) | 1 year 9 months 18 days | |
Servicer Advances | Secured Notes and Bonds Payable | Secured Overnight Financing Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 1.50% | |
Servicer Advances | Secured Notes and Bonds Payable | Secured Overnight Financing Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 3.70% | |
Servicer Advances | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 8 months 12 days | |
Outstanding Face | $ 2,648,186 | |
Amortized Cost Basis of Collateral | 2,586,079 | |
Carrying Value | $ 2,586,079 | |
Residential Mortgage Loans | Secured Overnight Financing Rate | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 1.20% | |
Residential Mortgage Loans | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 650,000 | |
Carrying Value | $ 650,000 | 650,000 |
Weighted Average Funding Cost | 6.80% | |
Weighted Average Life (Years) | 1 month 6 days | |
Residential Mortgage Loans | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 6 years 8 months 12 days | |
Outstanding Face | $ 648,077 | |
Amortized Cost Basis of Collateral | 665,862 | |
Carrying Value | 669,238 | |
Residential Mortgage Loans | Notes Payable of Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 3,015,722 | |
Carrying Value | $ 2,800,532 | 2,618,082 |
Weighted Average Funding Cost | 4.20% | |
Weighted Average Life (Years) | 26 years 9 months 18 days | |
Residential Mortgage Loans | Notes Payable of Consolidated Funds | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 26 years 9 months 18 days | |
Outstanding Face | $ 3,453,537 | |
Carrying Value | 3,257,446 | |
Consumer Loans | ||
Debt Instrument [Line Items] | ||
Carrying Value | 943,821 | 1,106,974 |
Consumer Loans | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 971,627 | |
Carrying Value | $ 943,821 | 1,106,974 |
Weighted Average Funding Cost | 6.80% | |
Weighted Average Life (Years) | 4 years 1 month 6 days | |
Consumer Loans | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 1 year 9 months 18 days | |
Outstanding Face | $ 1,154,642 | |
Amortized Cost Basis of Collateral | 1,123,851 | |
Carrying Value | 1,103,799 | |
Mortgage loans receivable | ||
Debt Instrument [Line Items] | ||
Carrying Value | 1,981,197 | 1,856,008 |
Mortgage loans receivable | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 200,000 | |
Carrying Value | $ 200,000 | 200,000 |
Weighted Average Funding Cost | 5.80% | |
Weighted Average Life (Years) | 2 years 3 months 18 days | |
Face amount of debt at fixed rate | $ 238,100 | |
Interest rate | 4.60% | |
Mortgage loans receivable | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 7 months 6 days | |
Outstanding Face | $ 224,165 | |
Amortized Cost Basis of Collateral | 224,165 | |
Carrying Value | 225,790 | |
Mortgage loans receivable | Notes Payable of Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 324,062 | |
Carrying Value | $ 324,062 | 318,998 |
Weighted Average Funding Cost | 5.60% | |
Weighted Average Life (Years) | 2 years 8 months 12 days | |
Mortgage loans receivable | Notes Payable of Consolidated Funds | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 7 months 6 days | |
Outstanding Face | $ 342,780 | |
Amortized Cost Basis of Collateral | 342,780 | |
Carrying Value | 341,831 | |
Secured Facility- Asset Management | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 75,000 | |
Carrying Value | $ 69,652 | 69,121 |
Weighted Average Funding Cost | 8.80% | |
Weighted Average Life (Years) | 1 year 7 months 6 days | |
Notes Payable of Consolidated Funds | Notes Payable of Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 222,250 | |
Carrying Value | $ 218,123 | $ 218,157 |
Weighted Average Funding Cost | 5% | |
Weighted Average Life (Years) | 4 years 7 months 6 days | |
Notes Payable of Consolidated Funds | Notes Payable of Consolidated Funds | Collateral | ||
Debt Instrument [Line Items] | ||
Outstanding Face | $ 206,141 | |
Carrying Value | 204,248 | |
2.5% to 3.5% Agency MSR Secured Note and Bond Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 3,500,000 | |
2.5% to 3.5% Agency MSR Secured Note and Bond Payable | Secured Overnight Financing Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 2.50% | |
2.5% to 3.5% Agency MSR Secured Note and Bond Payable | Secured Overnight Financing Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 3.70% | |
3.0% to 5.4% Public Notes | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 1,000,000 | |
3.0% to 5.4% Public Notes | Secured Notes and Bonds Payable | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 3% | |
3.0% to 5.4% Public Notes | Secured Notes and Bonds Payable | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.40% | |
Consumer Loan, UPB Class A | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 191,700 | |
Interest rate | 2% | |
Consumer Loan, UPB Class B | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 53,000 | |
Interest rate | 2.70% | |
Consumer Loan, Marcus | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 721,900,000 | |
Consumer Loan, Marcus | Secured Notes and Bonds Payable | Secured Overnight Financing Rate | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 3% | |
Consolidated Funds, Notes Payable, Class A | Notes Payable of Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 120,000 | |
Interest rate | 4.30% | |
Consolidated Funds, Notes Payable, Class B | Notes Payable of Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 70,000 | |
Interest rate | 6% | |
Consolidated Funds, Notes Payable, Class C | Notes Payable of Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 15,000 | |
Interest rate | 6.80% | |
Subordinated Notes | Notes Payable of Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 17,300 |
DEBT OBLIGATIONS (AS RESTATED_3
DEBT OBLIGATIONS (AS RESTATED) - General (Narrative) (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 31,642,766 |
Secured Financing Agreements | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 18,278,569 |
DEBT OBLIGATIONS (AS RESTATED_4
DEBT OBLIGATIONS (AS RESTATED) - Schedule of Carrying Value of Debt Obligations (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Debt Instrument [Roll Forward] | |
Beginning balance | $ 26,076,708 |
Ending balance | 31,335,078 |
Servicer Advances and Excess MSRs | |
Debt Instrument [Roll Forward] | |
Beginning balance | 2,713,933 |
Ending balance | 2,594,291 |
MSRs | |
Debt Instrument [Roll Forward] | |
Beginning balance | 4,800,728 |
Ending balance | 4,452,608 |
Commercial Notes Receivable | |
Debt Instrument [Roll Forward] | |
Beginning balance | 317,096 |
Ending balance | 317,324 |
Real Estate and Other Securities | |
Debt Instrument [Roll Forward] | |
Beginning balance | 8,762,658 |
Ending balance | 13,202,950 |
Residential Mortgage Loans and REO | |
Debt Instrument [Roll Forward] | |
Beginning balance | 5,208,120 |
Ending balance | 6,537,728 |
Consumer Loans | |
Debt Instrument [Roll Forward] | |
Beginning balance | 1,106,974 |
Ending balance | 943,821 |
SFR properties | |
Debt Instrument [Roll Forward] | |
Beginning balance | 809,708 |
Ending balance | 819,526 |
Mortgage loans receivable | |
Debt Instrument [Roll Forward] | |
Beginning balance | 1,856,008 |
Ending balance | 1,981,197 |
Asset Management | |
Debt Instrument [Roll Forward] | |
Beginning balance | 501,483 |
Ending balance | 485,633 |
Secured Financing Agreements | |
Debt Instrument [Roll Forward] | |
Beginning balance | 12,561,283 |
Borrowings | 34,543,190 |
Repayments | (28,830,007) |
FX remeasurement | (3,877) |
Capitalized deferred financing costs, net of amortization | 457 |
Ending balance | 18,271,046 |
Secured Financing Agreements | Servicer Advances and Excess MSRs | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | MSRs | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | Commercial Notes Receivable | |
Debt Instrument [Roll Forward] | |
Beginning balance | 317,096 |
Borrowings | 0 |
Repayments | 0 |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 228 |
Ending balance | 317,324 |
Secured Financing Agreements | Real Estate and Other Securities | |
Debt Instrument [Roll Forward] | |
Borrowings | 22,495,882 |
Repayments | (18,055,590) |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | Residential Mortgage Loans and REO | |
Debt Instrument [Roll Forward] | |
Borrowings | 11,289,428 |
Repayments | (10,142,463) |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 193 |
Secured Financing Agreements | Consumer Loans | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | SFR properties | |
Debt Instrument [Roll Forward] | |
Beginning balance | 20,534 |
Borrowings | 7,380 |
Repayments | 0 |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Ending balance | 27,914 |
Secured Financing Agreements | Mortgage loans receivable | |
Debt Instrument [Roll Forward] | |
Borrowings | 750,500 |
Repayments | (630,375) |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | Asset Management | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | (1,579) |
FX remeasurement | (3,877) |
Capitalized deferred financing costs, net of amortization | 36 |
Secured Notes and Bonds Payable | |
Debt Instrument [Roll Forward] | |
Borrowings | 761,266 |
Repayments | (1,405,197) |
FX remeasurement | (48) |
Capitalized deferred financing costs, net of amortization | 5,517 |
Unrealized (gain) loss on notes, fair value | (411) |
Secured Notes and Bonds Payable | Servicer Advances and Excess MSRs | |
Debt Instrument [Roll Forward] | |
Borrowings | 558,186 |
Repayments | (678,740) |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 912 |
Unrealized (gain) loss on notes, fair value | 0 |
Secured Notes and Bonds Payable | MSRs | |
Debt Instrument [Roll Forward] | |
Borrowings | 200,000 |
Repayments | (548,902) |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 782 |
Unrealized (gain) loss on notes, fair value | 0 |
Secured Notes and Bonds Payable | Commercial Notes Receivable | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Secured Notes and Bonds Payable | Real Estate and Other Securities | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Secured Notes and Bonds Payable | Residential Mortgage Loans and REO | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Secured Notes and Bonds Payable | Consumer Loans | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | (163,039) |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 297 |
Unrealized (gain) loss on notes, fair value | (411) |
Secured Notes and Bonds Payable | SFR properties | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | (420) |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 2,858 |
Unrealized (gain) loss on notes, fair value | 0 |
Secured Notes and Bonds Payable | Mortgage loans receivable | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Secured Notes and Bonds Payable | Asset Management | |
Debt Instrument [Roll Forward] | |
Borrowings | 3,080 |
Repayments | (14,096) |
FX remeasurement | (48) |
Capitalized deferred financing costs, net of amortization | 668 |
Unrealized (gain) loss on notes, fair value | 0 |
Liabilities of Consolidated Funds | |
Debt Instrument [Roll Forward] | |
Beginning balance | 3,155,237 |
Borrowings | 241,333 |
Repayments | (75,214) |
Discount on borrowings, net of amortization | 1,251 |
Unrealized (gain) loss on notes, fair value | 20,110 |
Acquired borrowings, net of discount | 0 |
Ending balance | 3,342,717 |
Liabilities of Consolidated Funds | Servicer Advances and Excess MSRs | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Discount on borrowings, net of amortization | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Acquired borrowings, net of discount | 0 |
Liabilities of Consolidated Funds | MSRs | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Discount on borrowings, net of amortization | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Acquired borrowings, net of discount | 0 |
Liabilities of Consolidated Funds | Commercial Notes Receivable | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Discount on borrowings, net of amortization | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Acquired borrowings, net of discount | 0 |
Liabilities of Consolidated Funds | Real Estate and Other Securities | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Discount on borrowings, net of amortization | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Acquired borrowings, net of discount | 0 |
Liabilities of Consolidated Funds | Residential Mortgage Loans and REO | |
Debt Instrument [Roll Forward] | |
Borrowings | 241,333 |
Repayments | (75,214) |
Discount on borrowings, net of amortization | 1,251 |
Unrealized (gain) loss on notes, fair value | 15,080 |
Acquired borrowings, net of discount | 0 |
Liabilities of Consolidated Funds | Consumer Loans | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Discount on borrowings, net of amortization | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Acquired borrowings, net of discount | 0 |
Liabilities of Consolidated Funds | SFR properties | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Discount on borrowings, net of amortization | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Acquired borrowings, net of discount | 0 |
Liabilities of Consolidated Funds | Mortgage loans receivable | |
Debt Instrument [Roll Forward] | |
Beginning balance | 318,998 |
Borrowings | 0 |
Repayments | 0 |
Discount on borrowings, net of amortization | 0 |
Unrealized (gain) loss on notes, fair value | 5,064 |
Acquired borrowings, net of discount | 0 |
Ending balance | 324,062 |
Liabilities of Consolidated Funds | Asset Management | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Discount on borrowings, net of amortization | 0 |
Unrealized (gain) loss on notes, fair value | (34) |
Acquired borrowings, net of discount | $ 0 |
DEBT OBLIGATIONS (AS RESTATED_5
DEBT OBLIGATIONS (AS RESTATED) - Schedule of Contractual Maturities of Debt Obligations (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Debt maturing in: | |
Remainder of 2024 | $ 19,212,541 |
2025 | 3,104,174 |
2026 | 3,762,616 |
2027 | 1,154,614 |
2028 | 846,839 |
2029 and thereafter | 4,611,982 |
Total | 32,692,766 |
Nonrecourse | |
Debt maturing in: | |
Remainder of 2024 | 1,720,835 |
2025 | 258,952 |
2026 | 2,355,033 |
2027 | 734,614 |
2028 | 846,839 |
2029 and thereafter | 3,561,982 |
Total | 9,478,255 |
Recourse | |
Debt maturing in: | |
Remainder of 2024 | 17,491,706 |
2025 | 2,845,222 |
2026 | 1,407,583 |
2027 | 420,000 |
2028 | 0 |
2029 and thereafter | 1,050,000 |
Total | 23,214,511 |
Nonrecourse, Secured Financing Agreements | |
Debt maturing in: | |
Total | 5,000,000 |
Nonrecourse, Secured Notes and Bonds Payable | |
Debt maturing in: | |
Total | 1,000,000 |
Nonrecourse, Unsecured Notes Net of Issuance Costs | |
Debt maturing in: | |
Total | 200,000 |
Nonrecourse, Consolidated Funds Notes Payable | |
Debt maturing in: | |
Total | 3,300,000 |
Recourse, Secured Financing Agreements | |
Debt maturing in: | |
Total | 17,300,000 |
Recourse, Secured Notes and Bonds Payable | |
Debt maturing in: | |
Total | 5,300,000 |
Recourse, Unsecured Notes Net of Issuance Costs | |
Debt maturing in: | |
Total | 600,000 |
Recourse, Consolidated Funds Notes Payable | |
Debt maturing in: | |
Total | $ 0 |
DEBT OBLIGATIONS (AS RESTATED_6
DEBT OBLIGATIONS (AS RESTATED) - Schedule of Borrowing Capacity (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Residential mortgage loans, mortgage loans receivable, SFR and commercial notes receivable | Secured Financing Agreements | |
Debt Instrument [Line Items] | |
Borrowing Capacity | $ 6,367,565 |
Balance Outstanding | 2,430,849 |
Available financing | 3,936,716 |
Loan originations | Secured Financing Agreements | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 5,227,000 |
Balance Outstanding | 2,464,912 |
Available financing | 2,762,088 |
CLOs | Secured Financing Agreements | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 315,790 |
Balance Outstanding | 179,858 |
Available financing | 135,932 |
Excess MSRs | Secured Notes and Bonds Payable | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 286,380 |
Balance Outstanding | 169,603 |
Available financing | 116,778 |
MSRs | Secured Notes and Bonds Payable | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 5,938,911 |
Balance Outstanding | 4,458,873 |
Available financing | 1,480,038 |
Servicer advances | Secured Notes and Bonds Payable | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 3,805,000 |
Balance Outstanding | 2,424,724 |
Available financing | 1,380,276 |
SFR | Secured Notes and Bonds Payable | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 296,639 |
Balance Outstanding | 194,997 |
Available financing | 101,642 |
Consolidated funds | Liabilities of Consolidated CFEs | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 52,500 |
Balance Outstanding | 0 |
Available financing | 52,500 |
Debt Excess Borrowing Capacity | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 22,289,785 |
Balance Outstanding | 12,323,816 |
Available financing | $ 9,965,970 |
DEBT OBLIGATIONS (AS RESTATED_7
DEBT OBLIGATIONS (AS RESTATED) - 2029 Senior Unsecured Notes (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 19, 2024 USD ($) | Mar. 31, 2024 USD ($) | |
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 31,642,766 | |
Senior Notes | 2029 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 775,000 | |
Issue price (as a percent) | 98.981% | |
Interest rate | 8% | |
Debt instrument, redemption price, percentage does not exceed principle amount (as a percent) | 40% | |
Debt redemption percentage | 108% | 101% |
Net proceeds | $ 759,000 | |
Issuance fees | $ 9,100 | $ 16,900 |
Interest expense and warehouse line fees | $ 2,100 | |
Debt instrument, restrictive covenants, minimum total unencumbered assets maintenance requirement | 1.20 |
DEBT OBLIGATIONS (AS RESTATED_8
DEBT OBLIGATIONS (AS RESTATED) - Schedule of Debt Redemption (Details) - 2029 Senior Notes - Senior Notes | 3 Months Ended | |
Mar. 19, 2024 | Mar. 31, 2024 | |
Debt Instrument [Line Items] | ||
Debt redemption percentage | 108% | 101% |
2026 | ||
Debt Instrument [Line Items] | ||
Debt redemption percentage | 104% | |
2027 | ||
Debt Instrument [Line Items] | ||
Debt redemption percentage | 102% | |
2028 and thereafter | ||
Debt Instrument [Line Items] | ||
Debt redemption percentage | 100% |
DEBT OBLIGATIONS (AS RESTATED_9
DEBT OBLIGATIONS (AS RESTATED) - 2025 Senior Unsecured Notes (Narrative) (Details) | 3 Months Ended | ||||
Oct. 16, 2024 | Mar. 19, 2024 USD ($) | Oct. 15, 2023 | Sep. 16, 2020 USD ($) | Mar. 31, 2024 USD ($) | |
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 31,642,766,000 | ||||
Senior Notes | 2025 Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 550,000,000 | ||||
Net proceeds | $ 544,500,000 | ||||
Interest rate | 6.25% | ||||
Debt redemption percentage | 101.563% | 101% | |||
Issuance fees | $ 8,300,000 | 2,700,000 | |||
Interest expense and warehouse line fees | $ 8,000,000 | ||||
Debt instrument, restrictive covenants, minimum total unencumbered assets maintenance requirement | 1.20 | ||||
Repurchase face amount | $ 275,000,000 | ||||
Early tender payment | 30 | ||||
Aggregate principal amount of senior notes | 275,000,000 | ||||
Repurchase amount | $ 282,400,000 | ||||
Senior Notes | 2025 Senior Notes | Forecast | |||||
Debt Instrument [Line Items] | |||||
Debt redemption percentage | 100% |
DEBT OBLIGATIONS (AS RESTATE_10
DEBT OBLIGATIONS (AS RESTATED) - Tax Receivable Agreement (Narrative) (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Debt Disclosure [Abstract] | |
Maximum undiscounted amounts | $ 267,921 |
Tax receivable agreement liability | $ 174,800 |
DEBT OBLIGATIONS (AS RESTATE_11
DEBT OBLIGATIONS (AS RESTATED) - Schedule of Maximum Undiscounted Amounts (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2024 | $ 11,591 |
2025 | 29,819 |
2026 | 17,374 |
2027 | 18,994 |
2028 | 15,940 |
2029 and thereafter | 174,203 |
Potential Payments Under TRA | $ 267,921 |
FAIR VALUE MEASUREMENTS (AS R_3
FAIR VALUE MEASUREMENTS (AS RESTATED) - Schedule of Carrying Values and Fair Values of Financial Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Assets | |||||
MSRs and MSR financing receivables | $ 8,706,723 | $ 8,405,938 | |||
Real estate and other securities | 14,832,401 | 9,337,159 | |||
Residential mortgage loans, HFS | [1] | 3,766,115 | 2,540,742 | ||
Residential mortgage loans, HFS, at fair value | 3,691,700 | 2,461,865 | |||
Residential mortgage loans subject to repurchase | 1,845,889 | 1,782,998 | $ 1,189,907 | ||
Derivative and hedging assets | 39,555 | 28,080 | |||
Notes receivable | 364,977 | ||||
Loans receivable | 27,997 | ||||
Cash, cash equivalents and restricted cash | 1,557,994 | 1,697,095 | $ 1,815,649 | $ 1,629,328 | |
Reverse repurchase agreements | 3,040,756 | 1,769,601 | |||
Other assets | 1,124,961 | 1,167,563 | |||
Liabilities | |||||
Residential mortgage loan repurchase liability | 1,800,000 | ||||
Treasury securities payable | 2,992,477 | 1,827,281 | |||
Derivative and hedging liabilities | 33,586 | 51,765 | |||
Notes payable of consolidated funds | 218,100 | ||||
US Treasury Bill Securities | |||||
Liabilities | |||||
Amortized cost | 24,900 | ||||
Recurring Basis | |||||
Assets | |||||
Excess MSRs, principal balance | 58,577,476 | ||||
MSRs and MSR financing receivables, principal balance | 526,673,826 | ||||
Servicer advance investments, principal balance | 313,271 | ||||
Real estate and other securities, principal balance | 24,017,832 | ||||
Residential mortgage loans, held-for-sale, principal balance | 89,460 | ||||
Residential mortgage loans, HFS, at fair value, principal balance | 3,701,355 | ||||
Residential mortgage loans, HFI, at fair value, principal balance | 434,474 | ||||
Residential mortgage loans subject to repurchase, principal balance | 1,845,889 | ||||
Consumer Loans, Held-For-Investment, Unpaid Principal Balance | 1,154,642 | ||||
Derivative asset, notional amount | 7,493,928 | ||||
Mortgage loans receivable, principal balance | 2,028,938 | ||||
Note receivable, principal balance | 503,397 | ||||
Loans receivable, principal balance | 27,997 | ||||
Cash, cash equivalents and restricted cash | 1,530,983 | ||||
Reverse repurchase agreements, principal balance | 3,040,756 | ||||
Assets of consolidated CFEs, principal balance | 324,631 | ||||
Assets of consolidated CFEs - loan securitizations, principal balance | 3,795,368 | ||||
Liabilities | |||||
Secured financing agreements, principal balance | 18,278,569 | ||||
Secured notes and bonds payable, principal balance | 9,802,163 | ||||
Unsecured notes, net of issuance costs, principal balance | 1,298,492 | ||||
Residential mortgage loan repurchase liability, principal balance | 1,845,889 | ||||
Payable for investments purchased, principal balance | 1,271,542 | ||||
Treasury securities, principal balance | 2,985,000 | ||||
Derivative liabilities, principal balance | 4,882,926 | ||||
Notes payable of consolidated funds, principal balance | 222,250 | ||||
Loan Securitization, Notes Payable, Principal Balance | 3,339,784 | ||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | 14,729,077 | 14,331,651 | |||
Recurring Basis | Asset-Backed Securities Issued | |||||
Liabilities | |||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability value | 221,900 | ||||
Recurring Basis | Level 3 | |||||
Liabilities | |||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability value | 764,107 | 772,925 | |||
Recurring Basis | Level 3 | Asset-Backed Securities Issued | |||||
Liabilities | |||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability value | 221,922 | $ 235,770 | |||
Recurring Basis | Carrying Value | |||||
Assets | |||||
Excess MSRs | 255,111 | ||||
MSRs and MSR financing receivables | 8,706,723 | ||||
Servicer advance investments | 374,511 | ||||
Real estate and other securities | 14,857,286 | ||||
Residential mortgage loans, HFS | 74,415 | ||||
Residential mortgage loans, HFS, at fair value | 3,691,700 | ||||
Residential mortgage loans, HFI, at fair value | 365,398 | ||||
Residential mortgage loans subject to repurchase | 1,845,889 | ||||
Consumer loans | 1,103,799 | ||||
Derivative and hedging assets | 102,227 | ||||
Mortgage loans receivable | 2,042,913 | ||||
Notes receivable | 364,977 | ||||
Loans receivable | 27,997 | ||||
Cash, cash equivalents and restricted cash | 1,530,983 | ||||
Reverse repurchase agreements | 3,040,756 | ||||
Assets of consolidated CFEs - funds | 350,043 | ||||
Assets of consolidated CFEs - loan securitizations | 3,632,016 | ||||
Other assets | 62,810 | ||||
Assets, fair value | 42,429,554 | ||||
Liabilities | |||||
Secured financing agreements | 18,271,046 | ||||
Secured notes and bonds payable | 9,721,315 | ||||
Unsecured notes, net of issuance costs | 1,205,411 | ||||
Residential mortgage loan repurchase liability | 1,845,889 | ||||
Payable for investments purchased | 1,271,542 | ||||
Treasury securities payable | 2,992,477 | ||||
Derivative and hedging liabilities | 33,586 | ||||
Notes payable of consolidated funds | 223,188 | ||||
Loan Securitization, Notes Payable, Liabilities | 3,141,121 | ||||
Liabilities, fair value | 38,705,575 | ||||
Recurring Basis | Fair Value | |||||
Assets | |||||
Excess MSRs | 255,111 | ||||
MSRs and MSR financing receivables | 8,706,723 | ||||
Servicer advance investments | 374,511 | ||||
Real estate and other securities | 14,857,287 | ||||
Residential mortgage loans, HFS | 74,415 | ||||
Residential mortgage loans, HFS, at fair value | 3,691,700 | ||||
Residential mortgage loans, HFI, at fair value | 365,398 | ||||
Residential mortgage loans subject to repurchase | 1,845,889 | ||||
Consumer loans | 1,103,799 | ||||
Derivative and hedging assets | 102,227 | ||||
Mortgage loans receivable | 2,042,913 | ||||
Notes receivable | 364,977 | ||||
Loans receivable | 27,997 | ||||
Cash, cash equivalents and restricted cash | 1,530,983 | ||||
Reverse repurchase agreements | 3,040,756 | ||||
Assets of consolidated CFEs - funds | 350,042 | ||||
Assets of consolidated CFEs - loan securitizations | 3,632,016 | ||||
Other assets | 62,810 | ||||
Assets, fair value | 42,429,554 | ||||
Liabilities | |||||
Secured financing agreements | 18,271,046 | ||||
Secured notes and bonds payable | 10,060,762 | ||||
Unsecured notes, net of issuance costs | 1,202,005 | ||||
Residential mortgage loan repurchase liability | 1,845,889 | ||||
Payable for investments purchased | 1,271,542 | ||||
Treasury securities payable | 2,992,477 | ||||
Derivative and hedging liabilities | 33,586 | ||||
Notes payable of consolidated funds | 223,188 | ||||
Loan Securitization, Notes Payable, Liabilities | 3,141,121 | ||||
Liabilities, fair value | 39,041,616 | ||||
Recurring Basis | Fair Value | Level 1 | |||||
Assets | |||||
Excess MSRs | 0 | ||||
MSRs and MSR financing receivables | 0 | ||||
Servicer advance investments | 0 | ||||
Real estate and other securities | 4,497,542 | ||||
Residential mortgage loans, HFS | 0 | ||||
Residential mortgage loans, HFS, at fair value | 0 | ||||
Residential mortgage loans, HFI, at fair value | 0 | ||||
Residential mortgage loans subject to repurchase | 0 | ||||
Consumer loans | 0 | ||||
Derivative and hedging assets | 62,672 | ||||
Mortgage loans receivable | 0 | ||||
Notes receivable | 0 | ||||
Loans receivable | 0 | ||||
Cash, cash equivalents and restricted cash | 1,530,983 | ||||
Reverse repurchase agreements | 0 | ||||
Assets of consolidated CFEs - funds | 11,705 | ||||
Assets of consolidated CFEs - loan securitizations | 32,739 | ||||
Other assets | 0 | ||||
Assets, fair value | 6,135,641 | ||||
Liabilities | |||||
Secured financing agreements | 0 | ||||
Secured notes and bonds payable | 0 | ||||
Unsecured notes, net of issuance costs | 0 | ||||
Residential mortgage loan repurchase liability | 0 | ||||
Payable for investments purchased | 1,271,542 | ||||
Treasury securities payable | 2,992,477 | ||||
Derivative and hedging liabilities | 0 | ||||
Notes payable of consolidated funds | 5,065 | ||||
Loan Securitization, Notes Payable, Liabilities | 16,527 | ||||
Liabilities, fair value | 4,285,611 | ||||
Recurring Basis | Fair Value | Level 2 | |||||
Assets | |||||
Excess MSRs | 0 | ||||
MSRs and MSR financing receivables | 0 | ||||
Servicer advance investments | 0 | ||||
Real estate and other securities | 9,566,210 | ||||
Residential mortgage loans, HFS | 0 | ||||
Residential mortgage loans, HFS, at fair value | 3,353,549 | ||||
Residential mortgage loans, HFI, at fair value | 0 | ||||
Residential mortgage loans subject to repurchase | 1,845,889 | ||||
Consumer loans | 0 | ||||
Derivative and hedging assets | 7,492 | ||||
Mortgage loans receivable | 0 | ||||
Notes receivable | 0 | ||||
Loans receivable | 0 | ||||
Cash, cash equivalents and restricted cash | 0 | ||||
Reverse repurchase agreements | 3,040,756 | ||||
Assets of consolidated CFEs - funds | 0 | ||||
Assets of consolidated CFEs - loan securitizations | 3,257,446 | ||||
Other assets | 0 | ||||
Assets, fair value | 21,071,342 | ||||
Liabilities | |||||
Secured financing agreements | 18,090,307 | ||||
Secured notes and bonds payable | 0 | ||||
Unsecured notes, net of issuance costs | 0 | ||||
Residential mortgage loan repurchase liability | 1,845,889 | ||||
Payable for investments purchased | 0 | ||||
Treasury securities payable | 0 | ||||
Derivative and hedging liabilities | 15,654 | ||||
Notes payable of consolidated funds | 0 | ||||
Loan Securitization, Notes Payable, Liabilities | 2,800,532 | ||||
Liabilities, fair value | 22,752,382 | ||||
Recurring Basis | Fair Value | Level 3 | |||||
Assets | |||||
Excess MSRs | 255,111 | ||||
MSRs and MSR financing receivables | 8,706,723 | ||||
Servicer advance investments | 374,511 | ||||
Real estate and other securities | 793,535 | ||||
Residential mortgage loans, HFS | 74,415 | ||||
Residential mortgage loans, HFS, at fair value | 338,151 | ||||
Residential mortgage loans, HFI, at fair value | 365,398 | ||||
Residential mortgage loans subject to repurchase | 0 | ||||
Consumer loans | 1,103,799 | ||||
Derivative and hedging assets | 32,063 | ||||
Mortgage loans receivable | 2,042,913 | ||||
Notes receivable | 364,977 | ||||
Loans receivable | 27,997 | ||||
Cash, cash equivalents and restricted cash | 0 | ||||
Reverse repurchase agreements | 0 | ||||
Assets of consolidated CFEs - funds | 0 | ||||
Assets of consolidated CFEs - loan securitizations | 341,831 | ||||
Other assets | 62,810 | ||||
Assets, fair value | 14,884,234 | ||||
Liabilities | |||||
Secured financing agreements | 180,739 | ||||
Secured notes and bonds payable | 10,060,762 | ||||
Unsecured notes, net of issuance costs | 1,202,005 | ||||
Residential mortgage loan repurchase liability | 0 | ||||
Payable for investments purchased | 0 | ||||
Treasury securities payable | 0 | ||||
Derivative and hedging liabilities | 17,932 | ||||
Notes payable of consolidated funds | 218,123 | ||||
Loan Securitization, Notes Payable, Liabilities | 324,062 | ||||
Liabilities, fair value | 12,003,623 | ||||
Recurring Basis | Fair Value | Net Asset Value (“NAV”) | |||||
Assets | |||||
Assets of consolidated CFEs - funds | 338,337 | ||||
Assets, fair value | 338,337 | ||||
Liabilities | |||||
Liabilities, fair value | $ 0 | ||||
[1] The Company's Consolidated Balance Sheets include assets and liabilities of consolidated variable interest entities (“VIEs”) and certain other consolidated VIEs classified as collateralized financing entities (“CFEs”) that are presented separately and measured under the CFE election. VIE assets can only be used to settle obligations and liabilities of the VIEs. VIE creditors do not have recourse to Rithm Capital Corp. As of March 31, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.8 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.9 billion and $4.7 billion, respectively. See Note 21 for further details. |
FAIR VALUE MEASUREMENTS (AS R_4
FAIR VALUE MEASUREMENTS (AS RESTATED) - Schedule of Changes in the Company’s Level 3 Inputs Financial Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Non-Agency | |||
Gain (loss) included in net income | |||
Gain (loss) on settlement of investments, net | $ 0 | $ 0 | |
Excess MSRs in Equity Method Investees | |||
Purchases, sales and repayments | |||
Rithm Capital’s percentage ownership | 50% | 50% | |
Recurring Basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning | $ 14,331,651 | ||
Transfers | |||
Transfers from Level 3 | 0 | ||
Transfers to Level 3 | 106 | ||
Gain (loss) included in net income | |||
Credit losses on securities | (662) | ||
Included in servicing revenue | 84,175 | ||
Excess MSRs | (1,867) | ||
Excess MSRs, equity method investees | 0 | ||
Servicer advance investments | 8,115 | ||
Consumer loans | (30,117) | ||
Residential mortgage loans | 5,596 | ||
Gain (loss) on settlement of investments, net | 36 | ||
Other income (loss), net | 9,945 | ||
Gains (losses) included in OCI | 737 | ||
Interest income | 29,503 | ||
Purchases, sales and repayments | |||
Purchases, net | 450,753 | ||
Proceeds from sales | (17,095) | ||
Proceeds from repayments | (999,771) | ||
Originations and other | 857,972 | ||
Balance, ending | 14,729,077 | ||
Recurring Basis | Excess MSRs | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning | 271,150 | ||
Transfers | |||
Transfers from Level 3 | 0 | ||
Transfers to Level 3 | 0 | ||
Gain (loss) included in net income | |||
Credit losses on securities | 0 | ||
Included in servicing revenue | 0 | ||
Excess MSRs | (1,867) | ||
Excess MSRs, equity method investees | 0 | ||
Servicer advance investments | 0 | ||
Consumer loans | 0 | ||
Residential mortgage loans | 0 | ||
Gain (loss) on settlement of investments, net | 0 | ||
Other income (loss), net | 0 | ||
Gains (losses) included in OCI | 0 | ||
Interest income | 2,446 | ||
Purchases, sales and repayments | |||
Purchases, net | 0 | ||
Proceeds from sales | 0 | ||
Proceeds from repayments | (16,618) | ||
Originations and other | 0 | ||
Balance, ending | 255,111 | ||
Recurring Basis | MSRs and MSR Financing Receivables | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning | 8,405,938 | ||
Transfers | |||
Transfers from Level 3 | 0 | ||
Transfers to Level 3 | 0 | ||
Gain (loss) included in net income | |||
Credit losses on securities | 0 | ||
Included in servicing revenue | 84,175 | ||
Excess MSRs | 0 | ||
Excess MSRs, equity method investees | 0 | ||
Servicer advance investments | 0 | ||
Consumer loans | 0 | ||
Residential mortgage loans | 0 | ||
Gain (loss) on settlement of investments, net | 0 | ||
Other income (loss), net | 0 | ||
Gains (losses) included in OCI | 0 | ||
Interest income | 0 | ||
Purchases, sales and repayments | |||
Purchases, net | 0 | ||
Proceeds from sales | 671 | ||
Proceeds from repayments | 0 | ||
Originations and other | 215,939 | ||
Balance, ending | 8,706,723 | ||
Recurring Basis | Servicer Advances | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning | 376,881 | ||
Transfers | |||
Transfers from Level 3 | 0 | ||
Transfers to Level 3 | 0 | ||
Gain (loss) included in net income | |||
Credit losses on securities | 0 | ||
Included in servicing revenue | 0 | ||
Excess MSRs | 0 | ||
Excess MSRs, equity method investees | 0 | ||
Servicer advance investments | 8,115 | ||
Consumer loans | 0 | ||
Residential mortgage loans | 0 | ||
Gain (loss) on settlement of investments, net | 0 | ||
Other income (loss), net | 0 | ||
Gains (losses) included in OCI | 0 | ||
Interest income | 7,315 | ||
Purchases, sales and repayments | |||
Purchases, net | 212,656 | ||
Proceeds from sales | |||
Proceeds from repayments | (230,456) | ||
Originations and other | 0 | ||
Balance, ending | 374,511 | ||
Recurring Basis | Non-Agency | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning | 804,029 | ||
Transfers | |||
Transfers from Level 3 | 0 | ||
Transfers to Level 3 | 0 | ||
Gain (loss) included in net income | |||
Credit losses on securities | (662) | ||
Included in servicing revenue | 0 | ||
Excess MSRs | 0 | ||
Excess MSRs, equity method investees | 0 | ||
Servicer advance investments | 0 | ||
Consumer loans | 0 | ||
Residential mortgage loans | 0 | ||
Gain (loss) on settlement of investments, net | 36 | ||
Other income (loss), net | 2,860 | ||
Gains (losses) included in OCI | 737 | ||
Interest income | 8,496 | ||
Purchases, sales and repayments | |||
Purchases, net | 17,579 | ||
Proceeds from sales | 0 | ||
Proceeds from repayments | (39,540) | ||
Originations and other | 0 | ||
Balance, ending | 793,535 | ||
Recurring Basis | Derivatives | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning | 23,804 | ||
Transfers | |||
Transfers from Level 3 | 0 | ||
Transfers to Level 3 | 0 | ||
Gain (loss) included in net income | |||
Credit losses on securities | 0 | ||
Included in servicing revenue | 0 | ||
Excess MSRs | 0 | ||
Excess MSRs, equity method investees | 0 | ||
Servicer advance investments | 0 | ||
Consumer loans | 0 | ||
Residential mortgage loans | 0 | ||
Gain (loss) on settlement of investments, net | 0 | ||
Other income (loss), net | (9,612) | ||
Gains (losses) included in OCI | 0 | ||
Interest income | 0 | ||
Purchases, sales and repayments | |||
Purchases, net | 0 | ||
Proceeds from sales | 0 | ||
Proceeds from repayments | 0 | ||
Originations and other | (61) | ||
Balance, ending | 14,131 | ||
Recurring Basis | Residential Mortgage Loans | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning | 513,381 | ||
Transfers | |||
Transfers from Level 3 | 0 | ||
Transfers to Level 3 | 106 | ||
Gain (loss) included in net income | |||
Credit losses on securities | 0 | ||
Included in servicing revenue | 0 | ||
Excess MSRs | 0 | ||
Excess MSRs, equity method investees | 0 | ||
Servicer advance investments | 0 | ||
Consumer loans | 0 | ||
Residential mortgage loans | 5,596 | ||
Gain (loss) on settlement of investments, net | 0 | ||
Other income (loss), net | 1,824 | ||
Gains (losses) included in OCI | 0 | ||
Interest income | 0 | ||
Purchases, sales and repayments | |||
Purchases, net | 216,405 | ||
Proceeds from sales | (17,766) | ||
Proceeds from repayments | (16,042) | ||
Originations and other | 45 | ||
Balance, ending | 703,549 | ||
Recurring Basis | Consumer Loans | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning | 1,274,005 | ||
Transfers | |||
Transfers from Level 3 | 0 | ||
Transfers to Level 3 | 0 | ||
Gain (loss) included in net income | |||
Credit losses on securities | 0 | ||
Included in servicing revenue | 0 | ||
Excess MSRs | 0 | ||
Excess MSRs, equity method investees | 0 | ||
Servicer advance investments | 0 | ||
Consumer loans | (30,117) | ||
Residential mortgage loans | 0 | ||
Gain (loss) on settlement of investments, net | 0 | ||
Other income (loss), net | 0 | ||
Gains (losses) included in OCI | 0 | ||
Interest income | 10,152 | ||
Purchases, sales and repayments | |||
Purchases, net | 4,113 | ||
Proceeds from sales | 0 | ||
Proceeds from repayments | (154,354) | ||
Originations and other | 0 | ||
Balance, ending | 1,103,799 | ||
Recurring Basis | Notes and Loans Receivable | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning | 429,550 | ||
Transfers | |||
Transfers from Level 3 | 0 | ||
Transfers to Level 3 | 0 | ||
Gain (loss) included in net income | |||
Credit losses on securities | 0 | ||
Included in servicing revenue | 0 | ||
Excess MSRs | 0 | ||
Excess MSRs, equity method investees | 0 | ||
Servicer advance investments | 0 | ||
Consumer loans | 0 | ||
Residential mortgage loans | 0 | ||
Gain (loss) on settlement of investments, net | 0 | ||
Other income (loss), net | 0 | ||
Gains (losses) included in OCI | 0 | ||
Interest income | 1,094 | ||
Purchases, sales and repayments | |||
Purchases, net | 0 | ||
Proceeds from sales | 0 | ||
Proceeds from repayments | (37,670) | ||
Originations and other | 0 | ||
Balance, ending | 392,974 | ||
Recurring Basis | Mortgage loans receivable | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning | 2,232,913 | ||
Transfers | |||
Transfers from Level 3 | 0 | ||
Transfers to Level 3 | 0 | ||
Gain (loss) included in net income | |||
Credit losses on securities | 0 | ||
Included in servicing revenue | 0 | ||
Excess MSRs | 0 | ||
Excess MSRs, equity method investees | 0 | ||
Servicer advance investments | 0 | ||
Consumer loans | 0 | ||
Residential mortgage loans | 0 | ||
Gain (loss) on settlement of investments, net | 0 | ||
Other income (loss), net | 14,873 | ||
Gains (losses) included in OCI | 0 | ||
Interest income | 0 | ||
Purchases, sales and repayments | |||
Purchases, net | 0 | ||
Proceeds from sales | 0 | ||
Proceeds from repayments | (505,091) | ||
Originations and other | 642,049 | ||
Balance, ending | $ 2,384,744 |
FAIR VALUE MEASUREMENTS (AS R_5
FAIR VALUE MEASUREMENTS (AS RESTATED) - Schedule of Changes in the Company’s Level 3 Financial Liabilities (Details) - Recurring Basis $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Asset-Backed Securities Issued | |
Purchases, sales and repayments | |
Ending balance | $ 221,900 |
Level 3 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 772,925 |
Gains (losses) included in net income | |
Other income | 4,619 |
Purchases, sales and repayments | |
Proceeds from sales | 0 |
Payments | (13,437) |
Ending balance | 764,107 |
Level 3 | Asset-Backed Securities Issued | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 235,770 |
Gains (losses) included in net income | |
Other income | (411) |
Purchases, sales and repayments | |
Proceeds from sales | 0 |
Payments | (13,437) |
Ending balance | 221,922 |
Level 3 | Notes Payable of Consolidated Funds | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 218,157 |
Gains (losses) included in net income | |
Other income | (34) |
Purchases, sales and repayments | |
Proceeds from sales | 0 |
Payments | 0 |
Ending balance | 218,123 |
Level 3 | Mortgage Loans Receivable Notes Payable of CFE | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 318,998 |
Gains (losses) included in net income | |
Other income | 5,064 |
Purchases, sales and repayments | |
Proceeds from sales | 0 |
Payments | 0 |
Ending balance | $ 324,062 |
FAIR VALUE MEASUREMENTS (AS R_6
FAIR VALUE MEASUREMENTS (AS RESTATED) - Schedule of Information Regarding the Ranges and Weighted Averages of Inputs (Details) | 3 Months Ended |
Mar. 31, 2024 $ / Loan | |
Prepayment Rate | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.006 |
Prepayment Rate | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.837 |
Prepayment Rate | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.073 |
Prepayment Rate | Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.006 |
Prepayment Rate | Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.837 |
Prepayment Rate | Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.064 |
Prepayment Rate | Non-Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.008 |
Prepayment Rate | Non-Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.835 |
Prepayment Rate | Non-Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.077 |
Prepayment Rate | Ginnie Mae | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.045 |
Prepayment Rate | Ginnie Mae | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.819 |
Prepayment Rate | Ginnie Mae | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.091 |
Prepayment Rate | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.025 |
Prepayment Rate | Directly Held | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.120 |
Prepayment Rate | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.066 |
Prepayment Rate | Held through Equity Method Investees | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.074 |
Prepayment Rate | Held through Equity Method Investees | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.101 |
Prepayment Rate | Held through Equity Method Investees | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.086 |
Delinquency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.001 |
Delinquency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 1 |
Delinquency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.055 |
Delinquency | Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.001 |
Delinquency | Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 1 |
Delinquency | Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.017 |
Delinquency | Non-Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.008 |
Delinquency | Non-Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.800 |
Delinquency | Non-Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.266 |
Delinquency | Ginnie Mae | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.001 |
Delinquency | Ginnie Mae | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.714 |
Delinquency | Ginnie Mae | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.081 |
Delinquency | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.002 |
Delinquency | Directly Held | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.150 |
Delinquency | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.062 |
Delinquency | Held through Equity Method Investees | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.018 |
Delinquency | Held through Equity Method Investees | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.050 |
Delinquency | Held through Equity Method Investees | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.032 |
Recapture Rate | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0 |
Recapture Rate | Directly Held | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.913 |
Recapture Rate | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.554 |
Recapture Rate | Held through Equity Method Investees | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.454 |
Recapture Rate | Held through Equity Method Investees | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.641 |
Recapture Rate | Held through Equity Method Investees | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.592 |
Mortgage Servicing Amount | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0001 |
Mortgage Servicing Amount | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0277 |
Mortgage Servicing Amount | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0033 |
Mortgage Servicing Amount | Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0012 |
Mortgage Servicing Amount | Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0136 |
Mortgage Servicing Amount | Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0027 |
Mortgage Servicing Amount | Non-Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0001 |
Mortgage Servicing Amount | Non-Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0277 |
Mortgage Servicing Amount | Non-Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0046 |
Mortgage Servicing Amount | Ginnie Mae | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0019 |
Mortgage Servicing Amount | Ginnie Mae | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0119 |
Mortgage Servicing Amount | Ginnie Mae | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0044 |
Mortgage Servicing Amount | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0007 |
Mortgage Servicing Amount | Directly Held | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0032 |
Mortgage Servicing Amount | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0020 |
Mortgage Servicing Amount | Held through Equity Method Investees | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0016 |
Mortgage Servicing Amount | Held through Equity Method Investees | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0025 |
Mortgage Servicing Amount | Held through Equity Method Investees | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0021 |
Collateral Weighted Average Maturity (Years) | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 0 years |
Collateral Weighted Average Maturity (Years) | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 40 years |
Collateral Weighted Average Maturity (Years) | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 24 years |
Collateral Weighted Average Maturity (Years) | Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 0 years |
Collateral Weighted Average Maturity (Years) | Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 40 years |
Collateral Weighted Average Maturity (Years) | Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 22 years |
Collateral Weighted Average Maturity (Years) | Non-Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 0 years |
Collateral Weighted Average Maturity (Years) | Non-Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 40 years |
Collateral Weighted Average Maturity (Years) | Non-Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 20 years |
Collateral Weighted Average Maturity (Years) | Ginnie Mae | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 0 years |
Collateral Weighted Average Maturity (Years) | Ginnie Mae | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 39 years |
Collateral Weighted Average Maturity (Years) | Ginnie Mae | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 27 years |
Collateral Weighted Average Maturity (Years) | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 11 years |
Collateral Weighted Average Maturity (Years) | Directly Held | Excess MSRs | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 26 years |
Collateral Weighted Average Maturity (Years) | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 20 years |
Collateral Weighted Average Maturity (Years) | Held through Equity Method Investees | Excess MSRs | Minimum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 14 years |
Collateral Weighted Average Maturity (Years) | Held through Equity Method Investees | Excess MSRs | Maximum | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 21 years |
Collateral Weighted Average Maturity (Years) | Held through Equity Method Investees | Excess MSRs | Weighted Average | |
Directly Held | |
Collateral Weighted Average Maturity (Years) | 18 years |
Measurement Input, Servicing Cost | Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 6.91 |
Measurement Input, Servicing Cost | Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 7.09 |
Measurement Input, Servicing Cost | Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 6.95 |
Measurement Input, Servicing Cost | Non-Agency | MSRs and MSR Financing Receivables | Minimum | |
Directly Held | |
Servicing asset, measurement input | 7.54 |
Measurement Input, Servicing Cost | Non-Agency | MSRs and MSR Financing Receivables | Maximum | |
Directly Held | |
Servicing asset, measurement input | 9.55 |
Measurement Input, Servicing Cost | Non-Agency | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 9.17 |
Measurement Input, Servicing Cost | Ginnie Mae | MSRs and MSR Financing Receivables | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 8.37 |
FAIR VALUE MEASUREMENTS (AS R_7
FAIR VALUE MEASUREMENTS (AS RESTATED) - Narrative (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Fair Value | $ 68,400 |
Notes payable of consolidated funds | 218,100 |
Residential Mortgage Loans, Held-for-Sale, at Lower Cost or Fair Value | |
Schedule of Equity Method Investments [Line Items] | |
Asset fair value adjustment | 200 |
Real Estate Owned | |
Schedule of Equity Method Investments [Line Items] | |
Asset fair value adjustment | 300 |
Fair Value, Measurements, Nonrecurring | |
Schedule of Equity Method Investments [Line Items] | |
Assets, fair value | 95,400 |
Fair Value, Measurements, Nonrecurring | Residential Mortgage Loans, Held-for-Sale | |
Schedule of Equity Method Investments [Line Items] | |
Assets, fair value | 74,400 |
Fair Value, Measurements, Nonrecurring | Real Estate Acquired in Satisfaction of Debt | |
Schedule of Equity Method Investments [Line Items] | |
Assets, fair value | 21,000 |
Recurring Basis | Fair Value | |
Schedule of Equity Method Investments [Line Items] | |
Assets, fair value | 42,429,554 |
Notes payable of consolidated funds | 223,188 |
Recurring Basis | Level 3 | Fair Value | |
Schedule of Equity Method Investments [Line Items] | |
Assets, fair value | 14,884,234 |
Notes payable of consolidated funds | $ 218,123 |
Weighted Average | |
Schedule of Equity Method Investments [Line Items] | |
Broker price discount | 20% |
Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Broker price discount | 10% |
Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Broker price discount | 25% |
Excess MSRs | Weighted Average | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 8.80% |
Excess MSRs | Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 8.50% |
Excess MSRs | Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 9% |
MSRs | Weighted Average | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 8.50% |
MSRs | Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 7.90% |
MSRs | Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 10.80% |
Secured Overnight Financing Rate | MSRs and MSR Financing Receivables | |
Schedule of Equity Method Investments [Line Items] | |
Variable interest rate spread | 4.10% |
FAIR VALUE MEASUREMENTS (AS R_8
FAIR VALUE MEASUREMENTS (AS RESTATED) - Schedule of Estimated Change in Fair Value of Interests in the Agency MSRs, Non-Agency MSRs and Ginnie Mae MSRs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Rithm Capital’s investment | $ 8,706,723 | $ 8,405,938 |
MSRs and MSR Financing Receivables | Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Rithm Capital’s investment | 5,477,522 | |
MSRs and MSR Financing Receivables | Agency | Twenty Percent Decrease In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | 5,916,038 | |
Amount | $ 438,516 | |
Percentage | 8% | |
MSRs and MSR Financing Receivables | Agency | Twenty Percent Decrease In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 5,712,739 | |
Amount | $ 235,217 | |
Percentage | 4.30% | |
MSRs and MSR Financing Receivables | Agency | Twenty Percent Decrease In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 5,564,061 | |
Amount | $ 86,539 | |
Percentage | 1.60% | |
MSRs and MSR Financing Receivables | Agency | Ten Percent Decrease In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 5,688,536 | |
Amount | $ 211,014 | |
Percentage | 3.90% | |
MSRs and MSR Financing Receivables | Agency | Ten Percent Decrease In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 5,589,924 | |
Amount | $ 112,402 | |
Percentage | 2.10% | |
MSRs and MSR Financing Receivables | Agency | Ten Percent Decrease In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 5,524,189 | |
Amount | $ 46,667 | |
Percentage | 0.90% | |
MSRs and MSR Financing Receivables | Agency | Ten Percent Increase In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 5,281,385 | |
Amount | $ (196,137) | |
Percentage | (3.60%) | |
MSRs and MSR Financing Receivables | Agency | Ten Percent Increase In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 5,374,997 | |
Amount | $ (102,525) | |
Percentage | (1.90%) | |
MSRs and MSR Financing Receivables | Agency | Ten Percent Increase In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 5,424,447 | |
Amount | $ (53,075) | |
Percentage | (1.00%) | |
MSRs and MSR Financing Receivables | Agency | Twenty Percent Increase In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 5,098,703 | |
Amount | $ (378,819) | |
Percentage | (6.90%) | |
MSRs and MSR Financing Receivables | Agency | Twenty Percent Increase In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 5,279,423 | |
Amount | $ (198,099) | |
Percentage | (3.60%) | |
MSRs and MSR Financing Receivables | Agency | Twenty Percent Increase In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 5,365,476 | |
Amount | $ (112,046) | |
Percentage | (2.00%) | |
MSRs and MSR Financing Receivables | Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Rithm Capital’s investment | $ 666,958 | |
MSRs and MSR Financing Receivables | Non-Agency | Twenty Percent Decrease In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | 736,242 | |
Amount | $ 69,284 | |
Percentage | 10.40% | |
MSRs and MSR Financing Receivables | Non-Agency | Twenty Percent Decrease In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 705,048 | |
Amount | $ 38,090 | |
Percentage | 5.70% | |
MSRs and MSR Financing Receivables | Non-Agency | Twenty Percent Decrease In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 702,058 | |
Amount | $ 35,100 | |
Percentage | 5.30% | |
MSRs and MSR Financing Receivables | Non-Agency | Ten Percent Decrease In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 700,014 | |
Amount | $ 33,056 | |
Percentage | 5% | |
MSRs and MSR Financing Receivables | Non-Agency | Ten Percent Decrease In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 685,527 | |
Amount | $ 18,569 | |
Percentage | 2.80% | |
MSRs and MSR Financing Receivables | Non-Agency | Ten Percent Decrease In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 685,264 | |
Amount | $ 18,306 | |
Percentage | 2.70% | |
MSRs and MSR Financing Receivables | Non-Agency | Ten Percent Increase In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 636,705 | |
Amount | $ (30,253) | |
Percentage | (4.50%) | |
MSRs and MSR Financing Receivables | Non-Agency | Ten Percent Increase In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 649,291 | |
Amount | $ (17,667) | |
Percentage | (2.60%) | |
MSRs and MSR Financing Receivables | Non-Agency | Ten Percent Increase In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 647,274 | |
Amount | $ (19,684) | |
Percentage | (3.00%) | |
MSRs and MSR Financing Receivables | Non-Agency | Twenty Percent Increase In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 608,936 | |
Amount | $ (58,022) | |
Percentage | (8.70%) | |
MSRs and MSR Financing Receivables | Non-Agency | Twenty Percent Increase In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 632,451 | |
Amount | $ (34,507) | |
Percentage | (5.20%) | |
MSRs and MSR Financing Receivables | Non-Agency | Twenty Percent Increase In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 626,531 | |
Amount | $ (40,427) | |
Percentage | (6.10%) | |
MSRs and MSR Financing Receivables | Ginnie Mae | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Rithm Capital’s investment | $ 2,562,243 | |
MSRs and MSR Financing Receivables | Ginnie Mae | Twenty Percent Decrease In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | 2,767,898 | |
Amount | $ 205,655 | |
Percentage | 8% | |
MSRs and MSR Financing Receivables | Ginnie Mae | Twenty Percent Decrease In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,710,793 | |
Amount | $ 148,550 | |
Percentage | 5.80% | |
MSRs and MSR Financing Receivables | Ginnie Mae | Twenty Percent Decrease In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,739,713 | |
Amount | $ 177,470 | |
Percentage | 6.90% | |
MSRs and MSR Financing Receivables | Ginnie Mae | Ten Percent Decrease In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,661,043 | |
Amount | $ 98,800 | |
Percentage | 3.90% | |
MSRs and MSR Financing Receivables | Ginnie Mae | Ten Percent Decrease In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,632,485 | |
Amount | $ 70,242 | |
Percentage | 2.70% | |
MSRs and MSR Financing Receivables | Ginnie Mae | Ten Percent Decrease In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,654,908 | |
Amount | $ 92,665 | |
Percentage | 3.60% | |
MSRs and MSR Financing Receivables | Ginnie Mae | Ten Percent Increase In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,470,671 | |
Amount | $ (91,572) | |
Percentage | (3.60%) | |
MSRs and MSR Financing Receivables | Ginnie Mae | Ten Percent Increase In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,498,505 | |
Amount | $ (63,738) | |
Percentage | (2.50%) | |
MSRs and MSR Financing Receivables | Ginnie Mae | Ten Percent Increase In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,463,189 | |
Amount | $ (99,054) | |
Percentage | (3.90%) | |
MSRs and MSR Financing Receivables | Ginnie Mae | Twenty Percent Increase In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,385,605 | |
Amount | $ (176,638) | |
Percentage | (6.90%) | |
MSRs and MSR Financing Receivables | Ginnie Mae | Twenty Percent Increase In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,439,407 | |
Amount | $ (122,836) | |
Percentage | (4.80%) | |
MSRs and MSR Financing Receivables | Ginnie Mae | Twenty Percent Increase In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,359,206 | |
Amount | $ (203,037) | |
Percentage | (7.90%) |
FAIR VALUE MEASUREMENTS (AS R_9
FAIR VALUE MEASUREMENTS (AS RESTATED) - Schedule of Servicer Advance Investments Valuation (Details) - Servicer Advances | 3 Months Ended |
Mar. 31, 2024 | |
Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 1.20% |
Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.039 |
Minimum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.066 |
Minimum | Mortgage Servicing Amount | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.00182 |
Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.062 |
Minimum | Collateral Weighted Average Maturity (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Collateral Weighted Average Maturity (Years) | 20 years 10 months 24 days |
Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2.40% |
Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.049 |
Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.200 |
Maximum | Mortgage Servicing Amount | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.00199 |
Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.067 |
Maximum | Collateral Weighted Average Maturity (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Collateral Weighted Average Maturity (Years) | 21 years 7 months 6 days |
Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2.40% |
Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.048 |
Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.197 |
Weighted Average | Mortgage Servicing Amount | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.00198 |
Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.062 |
Weighted Average | Collateral Weighted Average Maturity (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Collateral Weighted Average Maturity (Years) | 21 years 7 months 6 days |
FAIR VALUE MEASUREMENTS (AS _10
FAIR VALUE MEASUREMENTS (AS RESTATED) - Schedule of Securities Valuation Methodology (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) source | Dec. 31, 2023 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 14,832,401 | $ 9,337,159 |
Number of broker quotation sources | source | 2 | |
Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Face Amount | $ 9,751,506 | |
Amortized Cost Basis | 9,549,450 | |
Agency | Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 9,566,210 | |
Agency | Level 2 | Multiple Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 9,566,210 | |
Agency | Level 2 | Single Quote | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | |
Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Face Amount | 9,741,326 | |
Amortized Cost Basis | $ 765,827 | |
Percent of securities | 60.30% | |
Fair Value | $ 478,826 | |
Non-Agency | Minimum | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0 | |
Non-Agency | Minimum | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0 | |
Non-Agency | Minimum | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0 | |
Non-Agency | Minimum | Loss Severity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0 | |
Non-Agency | Maximum | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.126 | |
Non-Agency | Maximum | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.200 | |
Non-Agency | Maximum | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.020 | |
Non-Agency | Maximum | Loss Severity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.490 | |
Non-Agency | Weighted Average | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.066 | |
Non-Agency | Weighted Average | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.117 | |
Non-Agency | Weighted Average | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.010 | |
Non-Agency | Weighted Average | Loss Severity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Non agency RMBS, measurement input | 0.187 | |
Non-Agency | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 793,535 | |
Non-Agency | Level 3 | Multiple Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 581,539 | |
Non-Agency | Level 3 | Single Quote | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 211,996 | |
Mortgage Backed Securities, Excluding Treasury Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Face Amount | 19,492,832 | |
Amortized Cost Basis | 10,315,277 | |
Fair Value | 10,359,745 | |
Mortgage Backed Securities, Excluding Treasury Securities | Multiple Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 10,147,749 | |
Mortgage Backed Securities, Excluding Treasury Securities | Single Quote | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 211,996 |
FAIR VALUE MEASUREMENTS (AS _11
FAIR VALUE MEASUREMENTS (AS RESTATED) - Schedule of Inputs Used In Valuing Residential Mortgage Loans, Consumer Loans, Mortgage Loans Receivable, Derivatives, and Asset-Backed Securities Issued (Details) $ in Thousands | Mar. 31, 2024 USD ($) security |
Residential mortgage loans HFI, at fair value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans, held-for-investment, fair value | $ 365,398 |
Residential mortgage loans HFI, at fair value | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.079 |
Residential mortgage loans HFI, at fair value | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.030 |
Residential mortgage loans HFI, at fair value | Minimum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.013 |
Residential mortgage loans HFI, at fair value | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.232 |
Residential mortgage loans HFI, at fair value | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.098 |
Residential mortgage loans HFI, at fair value | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.039 |
Residential mortgage loans HFI, at fair value | Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.066 |
Residential mortgage loans HFI, at fair value | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.554 |
Residential mortgage loans HFI, at fair value | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.081 |
Residential mortgage loans HFI, at fair value | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.036 |
Residential mortgage loans HFI, at fair value | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.051 |
Residential mortgage loans HFI, at fair value | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.434 |
Consumer Loans Held-for-Investment, At Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans | $ 1,103,799 |
Consumer Loans Held-for-Investment, At Fair Value | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans | 267,948 |
Consumer Loans Held-for-Investment, At Fair Value | Marcus | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans | $ 835,851 |
Consumer Loans Held-for-Investment, At Fair Value | Minimum | Discount Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.084 |
Consumer Loans Held-for-Investment, At Fair Value | Minimum | Prepayment Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.094 |
Consumer Loans Held-for-Investment, At Fair Value | Minimum | Delinquency | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.017 |
Consumer Loans Held-for-Investment, At Fair Value | Minimum | Loss Severity | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.857 |
Consumer Loans Held-for-Investment, At Fair Value | Maximum | Discount Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.094 |
Consumer Loans Held-for-Investment, At Fair Value | Maximum | Prepayment Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.357 |
Consumer Loans Held-for-Investment, At Fair Value | Maximum | Delinquency | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.073 |
Consumer Loans Held-for-Investment, At Fair Value | Maximum | Loss Severity | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 1 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Discount Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.086 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Discount Rate | Marcus | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.078 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Prepayment Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.155 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Prepayment Rate | Marcus | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.198 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Delinquency | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.050 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Delinquency | Marcus | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.113 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Loss Severity | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.936 |
Consumer Loans Held-for-Investment, At Fair Value | Weighted Average | Loss Severity | Marcus | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.860 |
Mortgage Loans Held-for-Investment, at Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage loans, held for investment, fair value | $ 2,042,913 |
IRLCs | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, fair value | $ 31,228 |
IRLCs | Minimum | Loan Funding Probability | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.004 |
IRLCs | Minimum | Fair Value of Initial Servicing Rights (Bps) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.00044 |
IRLCs | Maximum | Loan Funding Probability | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 1 |
IRLCs | Maximum | Fair Value of Initial Servicing Rights (Bps) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.03450 |
IRLCs | Weighted Average | Loan Funding Probability | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.836 |
IRLCs | Weighted Average | Fair Value of Initial Servicing Rights (Bps) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.02397 |
Asset-Backed Securities Issued | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, fair value | $ 221,922 |
Asset-Backed Securities Issued | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.058 |
Asset-Backed Securities Issued | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.155 |
Asset-Backed Securities Issued | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.050 |
Asset-Backed Securities Issued | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.936 |
Acquired loans | Mortgage Loans Held-for-Investment, at Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage loans, held for investment, fair value | $ 73,934 |
Acquired loans | Mortgage Loans Held-for-Investment, at Fair Value | Minimum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage loans, held-for-investment, measurement input | 0.018 |
Acquired loans | Mortgage Loans Held-for-Investment, at Fair Value | Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage loans, held-for-investment, measurement input | 0.025 |
Acquired loans | Mortgage Loans Held-for-Investment, at Fair Value | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage loans, held-for-investment, measurement input | 0.107 |
Acquired loans | Mortgage Loans Held-for-Investment, at Fair Value | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage loans, held-for-investment, measurement input | 0 |
Acquired loans | Mortgage Loans Held-for-Investment, at Fair Value | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage loans, held-for-investment, measurement input | 0.021 |
Acquired loans | Mortgage Loans Held-for-Investment, at Fair Value | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage loans, held-for-investment, measurement input | 0.250 |
Originated loans | Residential mortgage loans HFS, at fair value | Minimum | Dealer price quotes and historical sale transactions | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | security | 0.509 |
Originated loans | Residential mortgage loans HFS, at fair value | Maximum | Dealer price quotes and historical sale transactions | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | security | 1 |
Originated loans | Residential mortgage loans HFS, at fair value | Weighted Average | Dealer price quotes and historical sale transactions | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | security | 0.858 |
Originated loans | Mortgage Loans Held-for-Investment, at Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage loans, held for investment, fair value | $ 1,968,979 |
Originated loans | Mortgage Loans Held-for-Investment, at Fair Value | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage loans, held-for-investment, measurement input | 0.096 |
Performing loans | Residential mortgage loans HFS, at fair value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 247,777 |
Performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 215,160 |
Performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.059 |
Performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.023 |
Performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Minimum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.013 |
Performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.069 |
Performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.097 |
Performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.091 |
Performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.066 |
Performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.554 |
Performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.064 |
Performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.073 |
Performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.027 |
Performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.117 |
Performing loans | Originated loans | Residential mortgage loans HFS, at fair value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 32,617 |
Performing loans | Originated loans | Residential mortgage loans HFS, at fair value | Level 3 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Percentage of loans | 66.90% |
Performing loans | Originated loans | Residential mortgage loans HFS, at fair value | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.044 |
Performing loans | Originated loans | Residential mortgage loans HFS, at fair value | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.089 |
Performing loans | Originated loans | Residential mortgage loans HFS, at fair value | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.036 |
Performing loans | Originated loans | Residential mortgage loans HFS, at fair value | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.207 |
Non-performing loans | Residential mortgage loans HFS, at fair value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 68,634 |
Non-performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 62,848 |
Non-performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.048 |
Non-performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.020 |
Non-performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Minimum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | security | 0.013 |
Non-performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 2.231 |
Non-performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.100 |
Non-performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.076 |
Non-performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | security | 0.043 |
Non-performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 8.639 |
Non-performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.063 |
Non-performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.038 |
Non-performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | security | 0.033 |
Non-performing loans | Acquired loans | Residential mortgage loans HFS, at fair value | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 2.437 |
Non-performing loans | Originated loans | Residential mortgage loans HFS, at fair value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held-for-sale, fair value | $ 5,786 |
Non-performing loans | Originated loans | Residential mortgage loans HFS, at fair value | Level 3 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Percentage of loans | 50.80% |
Non-performing loans | Originated loans | Residential mortgage loans HFS, at fair value | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | 0.044 |
Non-performing loans | Originated loans | Residential mortgage loans HFS, at fair value | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for sale, measurement input | security | 0.036 |
FAIR VALUE MEASUREMENTS (AS _12
FAIR VALUE MEASUREMENTS (AS RESTATED) - Schedule of Carrying Value and Significant Inputs Used in Valuing Notes and Loans Receivable (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Notes receivable | $ 364,977 |
Loans receivable | 27,997 |
Total | $ 392,974 |
Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans receivable, discount rate | 12.70% |
FAIR VALUE MEASUREMENTS (AS _13
FAIR VALUE MEASUREMENTS (AS RESTATED) - Schedule of Fair Value of the Investments by Fund Type and Ability to Redeem Investments (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value | $ 68,400 |
Investments subject to initial lock-up period | $ 168,600 |
Initial lock-up period | 3 years |
Percentage of investments that cannot be redeemed | 100% |
Minimum | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Redemption Notice Period | 30 days |
Liquidation term | 7 years |
Maximum | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Redemption Notice Period | 90 days |
Liquidation term | 9 years |
Net Asset Value (“NAV”) | Fair Value | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value | $ 338,337 |
Net Asset Value (“NAV”) | Fair Value | Open-ended | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value | 241,058 |
Net Asset Value (“NAV”) | Fair Value | Close-ended | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value | $ 97,279 |
FAIR VALUE MEASUREMENTS (AS _14
FAIR VALUE MEASUREMENTS (AS RESTATED) - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Broker price discount | 10% |
Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Broker price discount | 25% |
Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Broker price discount | 20% |
Residential Mortgage Loans, Held-for-Sale, at Lower Cost or Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Asset fair value adjustment | $ 0.2 |
Real Estate Owned | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Asset fair value adjustment | 0.3 |
Fair Value, Measurements, Nonrecurring | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | 95.4 |
Fair Value, Measurements, Nonrecurring | Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | 74.4 |
Fair Value, Measurements, Nonrecurring | Real Estate Acquired in Satisfaction of Debt | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | $ 21 |
FAIR VALUE MEASUREMENTS (AS _15
FAIR VALUE MEASUREMENTS (AS RESTATED) - Schedule of Loan Securitizations (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Residential mortgage loans | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Investments at fair value | $ 3,257,446 |
Notes payable at fair value | 2,800,532 |
Mortgage loans receivable | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Investments at fair value | 341,831 |
Notes payable at fair value | $ 324,062 |
Mortgage loans receivable | Discount Rate | Minimum | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Measurement input | 0.023 |
Mortgage loans receivable | Discount Rate | Maximum | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Measurement input | 0.066 |
Mortgage loans receivable | Discount Rate | Weighted Average | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Measurement input | 0.026 |
Mortgage loans receivable | Prepayment Rate | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Measurement input | 0.500 |
Mortgage loans receivable | CDR | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Measurement input | 0.030 |
Mortgage loans receivable | Loss Severity | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Measurement input | 0.150 |
FAIR VALUE MEASUREMENTS (AS _16
FAIR VALUE MEASUREMENTS (AS RESTATED) - Schedule of Inputs Used in Valuing Residential Mortgage Loans (Details) - Fair Value, Measurements, Nonrecurring - Fair Value $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | $ 74,415 |
Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.081 |
Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 5 years 6 months |
Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.037 |
CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.046 |
Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.332 |
Performing loans | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | $ 54,056 |
Performing loans | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.065 |
Performing loans | Minimum | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 4 years 9 months 18 days |
Performing loans | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.023 |
Performing loans | Minimum | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.037 |
Performing loans | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.302 |
Performing loans | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.083 |
Performing loans | Maximum | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 6 years 9 months 18 days |
Performing loans | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.062 |
Performing loans | Maximum | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.079 |
Performing loans | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.554 |
Performing loans | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.080 |
Performing loans | Weighted Average | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 5 years 3 months 18 days |
Performing loans | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.040 |
Performing loans | Weighted Average | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.044 |
Performing loans | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.337 |
Non-performing loans | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | $ 20,359 |
Non-performing loans | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.059 |
Non-performing loans | Minimum | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 5 years 4 months 24 days |
Non-performing loans | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.024 |
Non-performing loans | Minimum | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.013 |
Non-performing loans | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.232 |
Non-performing loans | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.100 |
Non-performing loans | Maximum | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 9 years 6 months |
Non-performing loans | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.031 |
Non-performing loans | Maximum | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.091 |
Non-performing loans | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.445 |
Non-performing loans | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.086 |
Non-performing loans | Weighted Average | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted Average Life (Years) | 6 years |
Non-performing loans | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.028 |
Non-performing loans | Weighted Average | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.049 |
Non-performing loans | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.320 |
VARIABLE INTEREST ENTITIES (A_3
VARIABLE INTEREST ENTITIES (AS RESTATED) - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||||
Mar. 31, 2022 | May 31, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Sep. 25, 2020 | ||
Variable Interest Entity [Line Items] | |||||||
Debt instrument, face amount | $ 31,642,766,000 | ||||||
Long-term debt | 32,692,766,000 | ||||||
Notes payable | [1] | 9,721,313,000 | $ 10,360,188,000 | ||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 3,452,000 | $ (1,300,000) | |||||
Recurring Basis | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | $ 14,729,077,000 | $ 14,331,651,000 | |||||
2022-RTL1 Securitization | Mortgage loans receivable | |||||||
Variable Interest Entity [Line Items] | |||||||
Debt instrument, term | 36 months | ||||||
Consumer Loan Companies | |||||||
Variable Interest Entity [Line Items] | |||||||
Ownership interest | 53.50% | ||||||
Securitization Notes Payable | 2022-RTL1 Securitization | |||||||
Variable Interest Entity [Line Items] | |||||||
Debt instrument, face amount | $ 487,200,000 | ||||||
Long-term debt | $ 341,800,000 | ||||||
Securitization Notes Payable | Consumer Loan Companies | |||||||
Variable Interest Entity [Line Items] | |||||||
Debt instrument, face amount | $ 663,000,000 | ||||||
Secured Notes and Bonds Payable | Sculptor | |||||||
Variable Interest Entity [Line Items] | |||||||
Unsecured notes, net of issuance costs | $ 218,100,000 | ||||||
Notes payable | 350,000,000 | ||||||
Notes payable retained by company | 127,800,000 | ||||||
Secured Notes and Bonds Payable | Class A Notes | Sculptor | |||||||
Variable Interest Entity [Line Items] | |||||||
Notes payable retained by company | 20,000,000 | ||||||
Secured Notes and Bonds Payable | Class C Notes | Sculptor | |||||||
Variable Interest Entity [Line Items] | |||||||
Notes payable retained by company | 20,000,000 | ||||||
Secured Notes and Bonds Payable | Subordinated Notes | Sculptor | |||||||
Variable Interest Entity [Line Items] | |||||||
Notes payable retained by company | 87,800,000 | ||||||
VIE, consolidated | Sculptor | |||||||
Variable Interest Entity [Line Items] | |||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 42,300,000 | ||||||
VIE, consolidated | Securitization Notes Payable | Securitization Facility, 2021-1 | |||||||
Variable Interest Entity [Line Items] | |||||||
Debt instrument, face amount | $ 750,000,000 | ||||||
Debt instrument, term | 3 years | ||||||
VIE, consolidated | Line of Credit | Revolving Credit Facility | |||||||
Variable Interest Entity [Line Items] | |||||||
Maximum borrowing capacity | 52,500,000 | ||||||
Maximum borrowing capacity per quarter | $ 20,000,000 | ||||||
Unused commitment fee percentage | 1.15% | ||||||
VIE, consolidated | Line of Credit | Revolving Credit Facility | Secured Overnight Financing Rate | |||||||
Variable Interest Entity [Line Items] | |||||||
Variable interest rate spread | 3% | ||||||
Related Party | VIE, consolidated | |||||||
Variable Interest Entity [Line Items] | |||||||
Unsecured notes, net of issuance costs | $ 2,800,000,000 | ||||||
Advance Purchaser | Corporate Joint Venture | |||||||
Variable Interest Entity [Line Items] | |||||||
Rithm Capital’s percentage ownership | 89.30% | 89.30% | |||||
Advance Purchaser | Corporate Joint Venture | VIE, consolidated | |||||||
Variable Interest Entity [Line Items] | |||||||
Rithm Capital’s percentage ownership | 89.30% | ||||||
[1] The Company's Consolidated Balance Sheets include assets and liabilities of consolidated variable interest entities (“VIEs”) and certain other consolidated VIEs classified as collateralized financing entities (“CFEs”) that are presented separately and measured under the CFE election. VIE assets can only be used to settle obligations and liabilities of the VIEs. VIE creditors do not have recourse to Rithm Capital Corp. As of March 31, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.8 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.9 billion and $4.7 billion, respectively. See Note 21 for further details. |
VARIABLE INTEREST ENTITIES (A_4
VARIABLE INTEREST ENTITIES (AS RESTATED) - Schedule of Carrying Value and Classification of the Assets and Liabilities of Consolidated VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | |
Assets | |||
Servicer advance investments, at fair value | $ 374,511 | $ 376,881 | |
Residential mortgage loans, HFS, at fair value | 3,691,700 | 2,461,865 | |
Investments, at fair value and other assets | [1] | 3,982,059 | 3,751,477 |
Cash and cash equivalents | 1,136,437 | ||
Total assets | 47,935,581 | 39,717,084 | |
Liabilities | |||
Secured financing agreements | [1] | 18,271,046 | 12,561,283 |
Notes payable of consolidated funds | 218,100 | ||
Accrued expenses and other liabilities | [1] | 1,884,527 | 2,065,761 |
Total liabilities | 40,692,209 | 32,616,046 | |
VIE, consolidated | |||
Assets | |||
Servicer advance investments, at fair value | 364,843 | 367,803 | |
Residential mortgage loans, HFS, at fair value | 1,177,451 | 1,112,097 | |
Consumer loans | 267,948 | 285,632 | |
Investments, at fair value and other assets | 3,937,614 | 3,714,037 | |
Cash and cash equivalents | 23,532 | 23,540 | |
Restricted cash | 62,116 | 52,535 | |
Other assets | 10,518 | 10,614 | |
Total assets | 5,844,022 | 5,566,258 | |
Liabilities | |||
Secured financing agreements | 1,052,769 | 996,845 | |
Secured notes and bonds payable | 487,698 | 510,174 | |
Notes payable of consolidated funds | 3,342,717 | 3,155,237 | |
Accrued expenses and other liabilities | 34,178 | 20,132 | |
Total liabilities | 4,917,362 | 4,682,388 | |
VIE, consolidated | Advance Purchaser | |||
Assets | |||
Servicer advance investments, at fair value | 364,843 | 367,803 | |
Residential mortgage loans, HFS, at fair value | 0 | 0 | |
Consumer loans | 0 | 0 | |
Investments, at fair value and other assets | 0 | 0 | |
Cash and cash equivalents | 5,532 | 5,381 | |
Restricted cash | 7,885 | 8,273 | |
Other assets | 9 | 9 | |
Total assets | 378,269 | 381,466 | |
Liabilities | |||
Secured financing agreements | 0 | 0 | |
Secured notes and bonds payable | 265,776 | 274,404 | |
Notes payable of consolidated funds | 0 | 0 | |
Accrued expenses and other liabilities | 2,505 | 2,606 | |
Total liabilities | 268,281 | 277,010 | |
VIE, consolidated | Newrez Joint Ventures | |||
Assets | |||
Servicer advance investments, at fair value | 0 | 0 | |
Residential mortgage loans, HFS, at fair value | 0 | 0 | |
Consumer loans | 0 | 0 | |
Investments, at fair value and other assets | 0 | 0 | |
Cash and cash equivalents | 18,000 | 18,159 | |
Restricted cash | 0 | 0 | |
Other assets | 631 | 688 | |
Total assets | 18,631 | 18,847 | |
Liabilities | |||
Secured financing agreements | 0 | 0 | |
Secured notes and bonds payable | 0 | 0 | |
Notes payable of consolidated funds | 0 | 0 | |
Accrued expenses and other liabilities | 2,366 | 2,240 | |
Total liabilities | 2,366 | 2,240 | |
VIE, consolidated | Residential Mortgage Loans | |||
Assets | |||
Servicer advance investments, at fair value | 0 | 0 | |
Residential mortgage loans, HFS, at fair value | 1,177,451 | 1,112,097 | |
Consumer loans | 0 | 0 | |
Investments, at fair value and other assets | 0 | 0 | |
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 9,381 | 6,113 | |
Other assets | 0 | 0 | |
Total assets | 1,186,832 | 1,118,210 | |
Liabilities | |||
Secured financing agreements | 1,052,769 | 996,845 | |
Secured notes and bonds payable | 0 | 0 | |
Notes payable of consolidated funds | 0 | 0 | |
Accrued expenses and other liabilities | 6,128 | 5,382 | |
Total liabilities | 1,058,897 | 1,002,227 | |
VIE, consolidated | Consumer Loan Companies | |||
Assets | |||
Servicer advance investments, at fair value | 0 | 0 | |
Residential mortgage loans, HFS, at fair value | 0 | 0 | |
Consumer loans | 267,948 | 285,632 | |
Investments, at fair value and other assets | 0 | 0 | |
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 6,232 | 6,301 | |
Other assets | 4,051 | 4,325 | |
Total assets | 278,231 | 296,258 | |
Liabilities | |||
Secured financing agreements | 0 | 0 | |
Secured notes and bonds payable | 221,922 | 235,770 | |
Notes payable of consolidated funds | 0 | 0 | |
Accrued expenses and other liabilities | 1,587 | 1,507 | |
Total liabilities | 223,509 | 237,277 | |
VIE, consolidated | Loan Securitizations - Mortgage Loans Receivable | |||
Assets | |||
Servicer advance investments, at fair value | 0 | 0 | |
Residential mortgage loans, HFS, at fair value | 0 | 0 | |
Consumer loans | 0 | 0 | |
Investments, at fair value and other assets | 341,831 | 353,594 | |
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 11,607 | 7,572 | |
Other assets | 4,888 | 4,532 | |
Total assets | 358,326 | 365,698 | |
Liabilities | |||
Secured financing agreements | 0 | 0 | |
Secured notes and bonds payable | 0 | 0 | |
Notes payable of consolidated funds | 324,062 | 318,998 | |
Accrued expenses and other liabilities | 371 | 372 | |
Total liabilities | 324,433 | 319,370 | |
VIE, consolidated | Loan Securitizations - Residential Mortgage Loans | |||
Assets | |||
Servicer advance investments, at fair value | 0 | 0 | |
Residential mortgage loans, HFS, at fair value | 0 | 0 | |
Consumer loans | 0 | 0 | |
Investments, at fair value and other assets | 3,257,446 | 3,038,587 | |
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 16,155 | 6,263 | |
Other assets | 89 | 0 | |
Total assets | 3,273,690 | 3,044,850 | |
Liabilities | |||
Secured financing agreements | 0 | 0 | |
Secured notes and bonds payable | 0 | 0 | |
Notes payable of consolidated funds | 2,800,532 | 2,618,082 | |
Accrued expenses and other liabilities | 16,156 | 6,262 | |
Total liabilities | 2,816,688 | 2,624,344 | |
VIE, consolidated | Consolidated Funds | |||
Assets | |||
Servicer advance investments, at fair value | 0 | 0 | |
Residential mortgage loans, HFS, at fair value | 0 | 0 | |
Consumer loans | 0 | 0 | |
Investments, at fair value and other assets | 338,337 | 321,856 | |
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 10,856 | 18,013 | |
Other assets | 850 | 1,060 | |
Total assets | 350,043 | 340,929 | |
Liabilities | |||
Secured financing agreements | 0 | 0 | |
Secured notes and bonds payable | 0 | 0 | |
Notes payable of consolidated funds | 218,123 | 218,157 | |
Accrued expenses and other liabilities | 5,065 | 1,763 | |
Total liabilities | $ 223,188 | $ 219,920 | |
[1] The Company's Consolidated Balance Sheets include assets and liabilities of consolidated variable interest entities (“VIEs”) and certain other consolidated VIEs classified as collateralized financing entities (“CFEs”) that are presented separately and measured under the CFE election. VIE assets can only be used to settle obligations and liabilities of the VIEs. VIE creditors do not have recourse to Rithm Capital Corp. As of March 31, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.8 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.9 billion and $4.7 billion, respectively. See Note 21 for further details. |
VARIABLE INTEREST ENTITIES (A_5
VARIABLE INTEREST ENTITIES (AS RESTATED) - Schedule of Non-Consolidated VIEs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Variable Interest Entity [Line Items] | |||
Carrying value of commercial real estate held within unconsolidated VIEs | $ 809,964 | $ 821,319 | |
Carrying value of Rithm Capital’s investments in unconsolidated commercial real estate VIEs | 201,624 | 173,882 | |
Variable Interest Entity, Not Primary Beneficiary | Real Estate Bonds | |||
Variable Interest Entity [Line Items] | |||
Residential mortgage loan UPB and other collateral | $ 8,012,829 | $ 8,237,692 | |
Weighted average delinquency | 5.40% | 5.30% | |
Net credit losses | $ 162,602 | $ 162,061 | |
Face amount of debt held by third parties | 7,361,326 | 7,596,408 | |
Carrying value of bonds retained by Rithm Capital | 554,438 | 543,447 | |
Year to date cash flows received by Rithm Capital on these bonds | $ 21,320 | $ 91,401 | |
Number of days delinquent (in days) | 60 days | ||
Variable Interest Entity, Not Primary Beneficiary | Commercial Real Estate | |||
Variable Interest Entity [Line Items] | |||
Carrying value of commercial real estate held within unconsolidated VIEs | $ 96,186 | 66,652 | |
Carrying value of Rithm Capital’s investments in unconsolidated commercial real estate VIEs | $ 34,846 | $ 29,210 |
VARIABLE INTEREST ENTITIES (A_6
VARIABLE INTEREST ENTITIES (AS RESTATED) - Schedule of Non-Consolidated VIEs with Variable Interest (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Net assets of unconsolidated VIEs in which the Company has a variable interest | $ 12,613,891 | $ 12,782,124 |
Maximum risk of loss as a result of the Company’s involvement with unconsolidated VIEs: | ||
Unearned income and fees | 38,993 | 37,468 |
Income and fees receivable | 37,873 | 43,250 |
Investments | 527,231 | 533,026 |
Unfunded commitments | 182,846 | 207,575 |
Other commitments | 23,021 | 0 |
Maximum Exposure to Loss | 809,964 | 821,319 |
Employees and Executive Managing Directors | ||
Maximum risk of loss as a result of the Company’s involvement with unconsolidated VIEs: | ||
Unfunded commitments | $ 94,800 | $ 97,500 |
VARIABLE INTEREST ENTITIES (A_7
VARIABLE INTEREST ENTITIES (AS RESTATED) - Schedule of Others’ Interests in the Equity of Consolidated Subsidiaries (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Noncontrolling Interest [Line Items] | ||||
Total Consolidated Equity | $ 7,243,372 | $ 6,954,543 | $ 7,101,038 | $ 7,010,068 |
Others' Interest in Equity of Consolidated Subsidiary | 93,820 | $ 94,096 | ||
Net income (loss) | 287,487 | 89,949 | ||
Others’ interest in net income (loss) of consolidated subsidiaries | $ 3,452 | $ (1,300) | ||
VIE, consolidated | Advance Purchaser | ||||
Noncontrolling Interest [Line Items] | ||||
Others' Ownership Interest | 10.70% | 10.70% | ||
VIE, consolidated | Advance Purchaser | Weighted Average | ||||
Noncontrolling Interest [Line Items] | ||||
Others' Ownership Interest | 10.70% | 10.70% | ||
VIE, consolidated | Newrez Joint Ventures | ||||
Noncontrolling Interest [Line Items] | ||||
Others' Ownership Interest | 49.50% | 49.50% | ||
VIE, consolidated | Newrez Joint Ventures | Weighted Average | ||||
Noncontrolling Interest [Line Items] | ||||
Others' Ownership Interest | 49.50% | 49.50% | ||
VIE, consolidated | Consumer Loan Companies | ||||
Noncontrolling Interest [Line Items] | ||||
Others' Ownership Interest | 46.50% | 46.50% | ||
VIE, consolidated | Consumer Loan Companies | Weighted Average | ||||
Noncontrolling Interest [Line Items] | ||||
Others' Ownership Interest | 46.50% | 46.50% | ||
VIE, consolidated | Advance Purchaser | ||||
Noncontrolling Interest [Line Items] | ||||
Total Consolidated Equity | $ 109,988 | $ 104,458 | ||
Others' Interest in Equity of Consolidated Subsidiary | 11,747 | 11,157 | ||
Net income (loss) | 9,530 | $ (1,370) | ||
Others’ interest in net income (loss) of consolidated subsidiaries | 1,018 | (146) | ||
VIE, consolidated | Newrez Joint Ventures | ||||
Noncontrolling Interest [Line Items] | ||||
Total Consolidated Equity | 16,265 | 16,607 | ||
Others' Interest in Equity of Consolidated Subsidiary | 8,051 | 8,220 | ||
Net income (loss) | 112 | (85) | ||
Others’ interest in net income (loss) of consolidated subsidiaries | 55 | (42) | ||
VIE, consolidated | Consumer Loan Companies | ||||
Noncontrolling Interest [Line Items] | ||||
Total Consolidated Equity | 68,126 | 72,361 | ||
Others' Interest in Equity of Consolidated Subsidiary | 31,679 | $ 33,748 | ||
Net income (loss) | 2,192 | (2,391) | ||
Others’ interest in net income (loss) of consolidated subsidiaries | $ 1,019 | $ (1,112) |
EQUITY AND EARNINGS PER SHARE -
EQUITY AND EARNINGS PER SHARE - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Mar. 20, 2024 | Aug. 05, 2022 | Sep. 30, 2021 | Feb. 29, 2020 | Aug. 31, 2019 | Jul. 31, 2019 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Feb. 05, 2024 | |
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 | |||||||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | ||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||||||
Number of shares issued (in shares) | 51,964,000 | 51,964,000 | ||||||||
Shares repurchased (in shares) | 0 | |||||||||
Dividends declared on preferred stock (in dollars per share) | $ 1.76 | $ 1.76 | ||||||||
Number of options (in shares) | 21,473,990 | 21,473,990 | ||||||||
Director | ||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||
Number of options (in shares) | 1,000 | |||||||||
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 | 6,200,000 | ||||||||
Dividends declared on preferred stock (in dollars per share) | $ 0.47 | $ 0.47 | 0.47 | |||||||
Interest rate | 7.50% | 7.50% | ||||||||
Preferred dividends | $ 2.9 | |||||||||
7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||
Number of shares issued (in shares) | 11,261,000 | 11,261,000 | ||||||||
Dividends declared on preferred stock (in dollars per share) | $ 0.45 | $ 0.45 | 0.45 | |||||||
Interest rate | 7.125% | 7.125% | ||||||||
Preferred dividends | $ 5 | |||||||||
6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||
Number of shares issued (in shares) | 15,903,000 | 15,903,000 | ||||||||
Dividends declared on preferred stock (in dollars per share) | $ 0.40 | $ 0.40 | 0.40 | |||||||
Interest rate | 6.375% | 6.375% | ||||||||
Preferred dividends | $ 6.3 | |||||||||
7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock | ||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||
Number of shares issued (in shares) | 18,600,000 | 18,600,000 | ||||||||
Dividends declared on preferred stock (in dollars per share) | $ 0.44 | $ 0.44 | $ 0.44 | |||||||
Interest rate | 7% | 7% | ||||||||
Preferred dividends | $ 8.1 | |||||||||
Common Stock | ||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||
Authorized repurchase amount | $ 200 | |||||||||
Common Stock | Distribution Agreement | ||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||
Net proceeds from liquidation | $ 500 | |||||||||
Number of shares issued (in shares) | 0 | |||||||||
Preferred Stock | ||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||
Authorized repurchase amount | $ 100 |
EQUITY AND EARNINGS PER SHARE_2
EQUITY AND EARNINGS PER SHARE - Schedule of Preferred Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Mar. 20, 2024 | Sep. 30, 2021 | Feb. 29, 2020 | Aug. 31, 2019 | Jul. 31, 2019 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Class of Stock [Line Items] | ||||||||
Number of shares issued (in shares) | 51,964 | 51,964 | ||||||
Liquidation Preference | $ 1,299,104 | $ 1,299,104 | ||||||
Carrying Value | $ 1,257,254 | |||||||
Dividends Declared (in dollars per share) | $ 1.76 | $ 1.76 | ||||||
Liquidation preference per share (in dollars per share) | $ 25 | |||||||
Series A, 7.50% issued July 2019 | ||||||||
Class of Stock [Line Items] | ||||||||
Interest rate | 7.50% | 7.50% | ||||||
Number of shares issued (in shares) | 6,200 | 6,200 | ||||||
Liquidation Preference | $ 155,002 | |||||||
Issuance Discount | 3.15% | |||||||
Carrying Value | $ 149,822 | |||||||
Dividends Declared (in dollars per share) | $ 0.47 | $ 0.47 | 0.47 | |||||
Series B, 7.125% issued August 2019 | ||||||||
Class of Stock [Line Items] | ||||||||
Interest rate | 7.125% | 7.125% | ||||||
Number of shares issued (in shares) | 11,261 | 11,261 | ||||||
Liquidation Preference | $ 281,518 | |||||||
Issuance Discount | 3.15% | |||||||
Carrying Value | $ 272,654 | |||||||
Dividends Declared (in dollars per share) | 0.45 | $ 0.45 | 0.45 | |||||
Series C, 6.375% issued February 2020 | ||||||||
Class of Stock [Line Items] | ||||||||
Interest rate | 6.375% | 6.375% | ||||||
Number of shares issued (in shares) | 15,903 | 15,903 | ||||||
Liquidation Preference | $ 397,584 | |||||||
Issuance Discount | 3.15% | |||||||
Carrying Value | $ 385,289 | |||||||
Dividends Declared (in dollars per share) | $ 0.40 | $ 0.40 | 0.40 | |||||
Series D, 7.00% issued September 2021 | ||||||||
Class of Stock [Line Items] | ||||||||
Interest rate | 7% | 7% | ||||||
Number of shares issued (in shares) | 18,600 | 18,600 | ||||||
Liquidation Preference | $ 465,000 | |||||||
Issuance Discount | 3.15% | |||||||
Carrying Value | $ 449,489 | |||||||
Dividends Declared (in dollars per share) | $ 0.44 | $ 0.44 | $ 0.44 |
EQUITY AND EARNINGS PER SHARE_3
EQUITY AND EARNINGS PER SHARE - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||||||
Mar. 20, 2024 | Dec. 12, 2023 | Sep. 14, 2023 | Jun. 23, 2023 | Mar. 17, 2023 | Dec. 15, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | |
Dividends Payable [Line Items] | ||||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.25 | ||||||
Total Amounts Distributed | $ 120.9 | $ 120.8 | $ 120.8 | $ 120.8 | $ 120.8 | $ 118.6 | ||
Quarterly Dividend | ||||||||
Dividends Payable [Line Items] | ||||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 |
EQUITY AND EARNINGS PER SHARE_4
EQUITY AND EARNINGS PER SHARE - Schedule of Outstanding Options - Period End (Details) $ / shares in Units, $ in Thousands | Mar. 31, 2024 USD ($) $ / shares shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share price (in dollars per share) | $ / shares | $ 11.16 |
Number of unexercised options (in shares) | 21,473,990 |
Options exercisable (in shares) | 21,472,801 |
Independent Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of unexercised options (in shares) | 2,000 |
Options exercisable (in shares) | 2,000 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 10.70 |
Intrinsic value of exercisable options | $ | $ 0 |
Former Manager | 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of unexercised options (in shares) | 1,130,916 |
Options exercisable (in shares) | 1,130,916 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 12.84 |
Intrinsic value of exercisable options | $ | $ 0 |
Former Manager | 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of unexercised options (in shares) | 5,320,000 |
Options exercisable (in shares) | 5,320,000 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 15.57 |
Intrinsic value of exercisable options | $ | $ 0 |
Former Manager | 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of unexercised options (in shares) | 6,351,000 |
Options exercisable (in shares) | 6,351,000 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 14.95 |
Intrinsic value of exercisable options | $ | $ 0 |
Former Manager | 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of unexercised options (in shares) | 1,619,739 |
Options exercisable (in shares) | 1,619,739 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 16.30 |
Intrinsic value of exercisable options | $ | $ 0 |
Former Manager | 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of unexercised options (in shares) | 7,050,335 |
Options exercisable (in shares) | 7,049,146 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 9.38 |
Intrinsic value of exercisable options | $ | $ 12,570 |
EQUITY AND EARNINGS PER SHARE_5
EQUITY AND EARNINGS PER SHARE - Schedule of Activity in Outstanding Options (Details) | 3 Months Ended |
Mar. 31, 2024 shares | |
Number of Options | |
Beginning balance (in shares) | 21,473,990 |
Granted (in shares) | 0 |
Exercised (in shares) | 0 |
Expired (in shares) | 0 |
Ending balance (in shares) | 21,473,990 |
EQUITY AND EARNINGS PER SHARE_6
EQUITY AND EARNINGS PER SHARE - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Net income (loss) | $ 287,487 | $ 89,949 |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 3,452 | (1,300) |
Dividends on preferred stock | 22,395 | 22,395 |
Net income (loss) attributable to common stockholders - basic | 261,640 | 68,854 |
Net income (loss) attributable to common stockholders - diluted | $ 261,640 | $ 68,854 |
Basic weighted average shares of common stock outstanding (in shares) | 483,336,777 | 478,167,178 |
Common stock purchase warrants (in shares) | 0 | 4,470,133 |
Diluted weighted average shares of common stock outstanding (in shares) | 485,931,501 | 482,846,911 |
Basic earnings (loss) per share attributable to common stockholders (in dollars per share) | $ 0.54 | $ 0.14 |
Diluted earnings (loss) per share attributable to common stockholders (in dollars per share) | $ 0.54 | $ 0.14 |
Antidilutive shares (in shares) | 0 | 0 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Effect of dilutive securities (in shares) | 897,800 | 0 |
Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Effect of dilutive securities (in shares) | 274,754 | 209,600 |
Time-based restricted stock unit awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Effect of dilutive securities (in shares) | 816,310 | 0 |
Performance-based restricted stock unit awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Effect of dilutive securities (in shares) | 605,860 | 0 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (AS RESTATED) (Details) $ in Millions | 3 Months Ended | |||
Feb. 27, 2024 USD ($) property | Feb. 26, 2024 USD ($) | Jun. 21, 2023 USD ($) property | Mar. 31, 2024 USD ($) property | |
Loss Contingencies [Line Items] | ||||
Estimated liability, representation and warranties | $ 52.6 | |||
Residential mortgage loan repurchase liability | 1,800 | |||
Committed to fund | 2 | |||
Unfunded capital commitments | 232.9 | |||
Fair Value | $ 68.4 | |||
Other commitment term | 6 years | |||
CLOs | ||||
Loss Contingencies [Line Items] | ||||
Unfunded capital commitments | $ 50 | |||
Director | ||||
Loss Contingencies [Line Items] | ||||
Contributions to parent company | 94.8 | |||
Variable Interest Entity, Not Primary Beneficiary | ||||
Loss Contingencies [Line Items] | ||||
Unfunded capital commitments | $ 114.5 | |||
Single Family | ||||
Loss Contingencies [Line Items] | ||||
Number of units completed | property | 200 | |||
Crowne Property Acquisitions, LLC | Single Family | ||||
Loss Contingencies [Line Items] | ||||
Number of properties | property | 371 | |||
Aggregate purchase price | $ 95.6 | |||
Viewpoint Murfreesboro Land LLC | Single Family | ||||
Loss Contingencies [Line Items] | ||||
Number of properties | property | 171 | |||
Aggregate purchase price | $ 49 | |||
Purchase price of land | $ 7 | |||
Genesis Acquisition | ||||
Loss Contingencies [Line Items] | ||||
Committed to fund | $ 829.3 | |||
Subsidiary of Parent | Great Ajax Corp. | Term Loan Agreement | ||||
Loss Contingencies [Line Items] | ||||
Loan agreement term | 1 year | |||
Loan agreement, face amount | $ 70 | |||
Great Ajax Corp. | ||||
Loss Contingencies [Line Items] | ||||
Warrant term | 5 years | |||
Unfunded Loan Commitment | Consumer Portfolio Segment | Consumer Loan Companies | ||||
Loss Contingencies [Line Items] | ||||
Financing receivable | $ 168.4 |
RELATED PARTY TRANSACTIONS (A_2
RELATED PARTY TRANSACTIONS (AS RESTATED) (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Jul. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Alternative investment | $ 68.4 | ||
Related Party | Loan Agreement | Genesis | |||
Related Party Transaction [Line Items] | |||
Loan agreement amount | $ 86.4 | ||
Financing receivable term | 27 months | ||
Related Party | Structured Alternative Investment Solution | Sculptor | |||
Related Party Transaction [Line Items] | |||
Alternative investment | $ 350 | ||
Alternative investment amount | $ 127.8 | ||
Executive Managing Directors, Employees, and Other Related Parties | Related Party Assets Under Management | |||
Related Party Transaction [Line Items] | |||
Assets under management, carrying amount | $ 708.8 | ||
Percentage not charged management fees or incentive income | 53.70% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Current: | |||
Federal | $ 613 | $ 17 | |
State and local | 396 | 22 | |
Foreign | 1,775 | 0 | |
Total current income tax expense (benefit) | 2,784 | 39 | |
Deferred: | |||
Federal | 76,453 | (14,168) | |
State and local | 13,237 | (2,677) | |
Foreign | 938 | 0 | |
Total deferred income tax expense (benefit) | 90,628 | (16,845) | |
Total income tax expense (benefit) | 93,412 | $ (16,806) | |
Deferred tax liability | 898,040 | $ 801,857 | |
Deferred tax asset | $ 284,900 |
ASSET MANAGEMENT REVENUES - Sch
ASSET MANAGEMENT REVENUES - Schedule of Composition of Asset Management Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,184,758 | $ 824,788 |
Other asset management revenue | 4,909 | |
Total revenues | 1,260,618 | 824,788 |
Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 57,130 | |
Incentive income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 13,821 | |
Asset management revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 75,860 | $ 0 |
ASSET MANAGEMENT REVENUES - S_2
ASSET MANAGEMENT REVENUES - Schedule of Income and Fees Receivable (Details) - Genesis - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Disaggregation of Revenue [Line Items] | ||
Total income and fees receivable | $ 49,829 | $ 59,134 |
Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total income and fees receivable | 21,548 | 23,757 |
Incentive income | ||
Disaggregation of Revenue [Line Items] | ||
Total income and fees receivable | $ 28,281 | $ 35,377 |
ASSET MANAGEMENT REVENUES - S_3
ASSET MANAGEMENT REVENUES - Schedule of Unearned Income and Fees (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Disaggregation of Revenue [Line Items] | ||
Total unearned income and fees | $ 38,993 | $ 37,468 |
Genesis | ||
Disaggregation of Revenue [Line Items] | ||
Total unearned income and fees | 38,993 | 37,468 |
Genesis | Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total unearned income and fees | 1 | 1 |
Genesis | Incentive income | ||
Disaggregation of Revenue [Line Items] | ||
Total unearned income and fees | $ 38,992 | $ 37,467 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Computershare Mortgage Services Inc - Subsequent Event $ in Millions | May 01, 2024 USD ($) |
Subsequent Event [Line Items] | |
Business combination, consideration transferred | $ 720 |
Mortgaging Servicing Rights | |
Subsequent Event [Line Items] | |
Assets acquired | 45,000 |
Third-Party Servicing UPB | |
Subsequent Event [Line Items] | |
Assets acquired | $ 104,000 |