COVER
COVER - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 05, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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) | 489,732,422 | |
Entity Central Index Key | 0001556593 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
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 | Jun. 30, 2024 | Dec. 31, 2023 | |
Assets | |||
Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value | $ 9,693,331 | $ 8,405,938 | |
Government and government-backed securities (includes $9,300,237 and $8,533,130 at fair value, respectively) | 9,325,097 | 8,557,683 | |
Residential mortgage loans, held-for-investment, at fair value | 368,866 | 379,044 | |
Residential mortgage loans, held-for-sale (includes $3,837,929 and $2,461,865 at fair value, respectively) | [1] | 3,910,823 | 2,540,742 |
Consumer loans, held-for-investment, at fair value | [1] | 946,367 | 1,274,005 |
Single-family rental (“SFR”) properties | 1,025,324 | 1,001,928 | |
Mortgage loans receivable, at fair value | [1] | 2,049,266 | 1,879,319 |
Residential mortgage loans subject to repurchase | 1,905,625 | 1,782,998 | |
Cash and cash equivalents | [1] | 1,238,736 | 1,287,199 |
Restricted cash | 322,979 | 409,896 | |
Servicer advances receivable | 2,774,510 | 2,760,250 | |
Reverse repurchase agreements(A) | 0 | 1,769,601 | |
Other assets (includes $2,066,399 and $1,971,592 at fair value, respectively) | [1] | 4,251,186 | 3,948,852 |
Assets of consolidated CFEs : | |||
Investments, at fair value and other assets | [1] | 4,232,803 | 3,751,477 |
Total assets | 42,018,889 | 39,717,084 | |
Liabilities | |||
Secured financing agreements | [1] | 15,179,900 | 12,561,283 |
Secured notes and bonds payable (includes $205,286 and $235,770 at fair value, respectively) | [1] | 9,955,891 | 10,360,188 |
Residential mortgage loan repurchase liability | 1,905,625 | 1,782,998 | |
Unsecured notes, net of issuance costs | 1,197,294 | 719,004 | |
Treasury securities payable | 0 | 1,827,281 | |
Dividends payable | 139,004 | 135,897 | |
Accrued expenses and other liabilities (includes $503,925 and $51,765 at fair value, respectively) | [1] | 2,644,728 | 2,065,761 |
Liabilities of consolidated CFEs : | |||
Notes payable, at fair value and other liabilities | [1] | 3,575,833 | 3,163,634 |
Total liabilities | 34,598,275 | 32,616,046 | |
Commitments and Contingencies (Note 25) | |||
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, 489,732,422 and 483,226,239 issued and outstanding, respectively | 4,897 | 4,833 | |
Additional paid-in capital | 6,162,872 | 6,074,322 | |
Retained earnings (accumulated deficit) | (143,185) | (373,141) | |
Accumulated other comprehensive income | 44,755 | 43,674 | |
Total Rithm Capital stockholders’ equity | 7,326,593 | 7,006,942 | |
Noncontrolling interests in equity of consolidated subsidiaries | 94,021 | 94,096 | |
Total equity | 7,420,614 | 7,101,038 | |
Total Liabilities and Equity | 42,018,889 | 39,717,084 | |
Consolidated Entity, Excluding Consolidated VIE | |||
Assets | |||
Cash and cash equivalents | 1,238,736 | 1,287,199 | |
Restricted cash | [1] | $ 296,955 | $ 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 June 30, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.1 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.2 billion and $4.7 billion, respectively. See Note 20 for further details. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Government and government-backed securities, at fair value | $ 9,300,237 | $ 8,533,130 |
Residential mortgage loans, HFS, at fair value | 3,837,929 | 2,461,865 |
Other assets, fair value | 2,066,399 | 1,971,592 |
Secured notes and bonds payable, fair value | 205,286 | 235,770 |
Accrued expenses and other liabilities, fair value | $ 503,925 | $ 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 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 489,732,422 | 483,226,239 |
Common stock, shares outstanding (in shares) | 489,732,422 | 483,226,239 |
Assets | $ 42,018,889 | $ 39,717,084 |
Liabilities | 34,598,275 | 32,616,046 |
Variable Interest Entity, Primary Beneficiary | ||
Residential mortgage loans, HFS, at fair value | 407,036 | 1,112,097 |
Assets | 5,083,137 | 5,566,258 |
Liabilities | $ 4,153,523 | $ 4,682,388 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues | ||||
Total revenues | $ 1,229,407 | $ 1,110,339 | $ 2,490,025 | $ 1,935,127 |
Expenses | ||||
Interest expense and warehouse line fees | 465,944 | 324,235 | 875,771 | 628,450 |
General and administrative | 207,123 | 181,918 | 404,317 | 349,397 |
Compensation and benefits | 270,448 | 189,606 | 506,226 | 378,486 |
Total operating expenses | 943,515 | 695,759 | 1,786,314 | 1,356,333 |
Other Income (Loss) | ||||
Realized and unrealized gains (losses), net | (14,769) | 76,533 | (59,615) | 10,628 |
Other income (loss), net | 19,042 | (47,898) | 26,968 | (73,064) |
Total other income (loss) | 4,273 | 28,635 | (32,647) | (62,436) |
Income (loss) before income taxes | 290,165 | 443,215 | 671,064 | 516,358 |
Income tax expense (benefit) | 51,648 | 56,530 | 145,060 | 39,724 |
Net income (loss) | 238,517 | 386,685 | 526,004 | 476,634 |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 2,961 | 6,889 | 6,413 | 5,589 |
Dividends on preferred stock | 22,395 | 22,395 | 44,790 | 44,790 |
Net income (loss) attributable to common stockholders - basic | 213,161 | 357,401 | 474,801 | 426,255 |
Net income (loss) attributable to common stockholders - diluted | $ 213,161 | $ 357,401 | $ 474,801 | $ 426,255 |
Net Income (loss) per share of common stock | ||||
Basic (in dollars per share) | $ 0.44 | $ 0.74 | $ 0.98 | $ 0.89 |
Diluted (in dollars per share) | $ 0.43 | $ 0.74 | $ 0.97 | $ 0.88 |
Weighted average number of shares of common stock outstanding | ||||
Basic (in shares) | 486,721,836 | 483,091,792 | 485,029,307 | 480,642,680 |
Diluted (in shares) | 490,981,282 | 483,376,961 | 488,456,392 | 483,113,400 |
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.50 |
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | ||||
Revenues | ||||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | $ 498,978 | $ 465,347 | $ 968,869 | $ 935,004 |
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(165,138), $(139,410), $(281,977) and $(245,101), respectively) | ||||
Revenues | ||||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | (67,898) | 22,032 | 16,277 | (120,272) |
Servicing revenue, net | ||||
Revenues | ||||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 431,080 | 487,379 | 985,146 | 814,732 |
Interest income | ||||
Revenues | ||||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 478,653 | 385,167 | 908,539 | 715,190 |
Gain on originated residential mortgage loans, held-for-sale, net | ||||
Revenues | ||||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 153,741 | 178,584 | 296,199 | 287,852 |
Other revenues | ||||
Revenues | ||||
Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | 56,500 | 59,209 | 114,848 | 117,353 |
Asset management revenues | ||||
Revenues | ||||
Total revenues | $ 109,433 | $ 0 | $ 185,293 | $ 0 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
MSRs | ||||
Realization of cash flows | $ (165,138) | $ (139,410) | $ (281,977) | $ (245,101) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Net income (loss) | $ 238,517 | $ 386,685 | $ 526,004 | $ 476,634 |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on available-for-sale securities, net | 412 | (677) | 2,015 | 2,303 |
Cumulative translation adjustment, net | (204) | 0 | (1,074) | 0 |
Deferred taxes | 46 | 0 | 140 | 0 |
Comprehensive income (loss) | 238,771 | 386,008 | 527,085 | 478,937 |
Comprehensive income (loss) attributable to noncontrolling interests | 2,961 | 6,889 | 6,413 | 5,589 |
Dividends on preferred stock | 22,395 | 22,395 | 44,790 | 44,790 |
Comprehensive income (loss) attributable to common stockholders | $ 213,415 | $ 356,724 | $ 475,882 | $ 428,558 |
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 | (241,584) | (241,584) | (241,584) | |||||
Dividends declared on preferred stock | (44,790) | (44,790) | (44,790) | 0 | ||||
Capital distributions | (12,405) | (12,405) | ||||||
Cashless exercise of 2020 Warrants (in shares) | 9,287,347,000 | |||||||
Cashless exercise of 2020 Warrants | 0 | 0 | $ 93 | (93) | ||||
Director share grants and employee non-cash stock-based compensation (in shares) | 318,159,000 | |||||||
Director share grants and non-cash stock-based compensation | 4,458 | 4,458 | $ 2 | 6,687 | (2,231) | |||
Comprehensive income (loss): | ||||||||
Net income (loss) | 476,634 | 471,045 | 471,045 | 5,589 | ||||
Unrealized gain (loss) on available-for-sale securities, net | 2,303 | 2,303 | 2,303 | |||||
Cumulative translation adjustment, net | 0 | |||||||
Deferred taxes | 0 | |||||||
Comprehensive income (loss) | 478,937 | 473,348 | 5,589 | |||||
Preferred stock, ending balance (in shares) at Jun. 30, 2023 | 51,964,122,000 | |||||||
Ending balance at Jun. 30, 2023 | 7,194,684 | 7,134,433 | $ 1,257,254 | $ 4,834 | 6,068,613 | (236,222) | 39,954 | 60,251 |
Common stock, ending balance (in shares) at Jun. 30, 2023 | 483,320,606,000 | |||||||
Preferred stock, beginning balance (in shares) at Mar. 31, 2023 | 51,964,122,000 | |||||||
Beginning 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, beginning balance (in shares) at Mar. 31, 2023 | 483,017,747,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared on common stock | (120,830) | (120,830) | (120,830) | |||||
Dividends declared on preferred stock | (22,395) | (22,395) | (22,395) | |||||
Capital distributions | (6,975) | (6,975) | ||||||
Director share grants and employee non-cash stock-based compensation (in shares) | 302,859,000 | |||||||
Director share grants and non-cash stock-based compensation | 4,333 | 4,333 | $ 2 | 6,562 | (2,231) | |||
Comprehensive income (loss): | ||||||||
Net income (loss) | 386,685 | 379,796 | 379,796 | 6,889 | ||||
Unrealized gain (loss) on available-for-sale securities, net | (677) | (677) | (677) | |||||
Cumulative translation adjustment, net | 0 | |||||||
Deferred taxes | 0 | |||||||
Comprehensive income (loss) | 386,008 | 379,119 | 6,889 | |||||
Preferred stock, ending balance (in shares) at Jun. 30, 2023 | 51,964,122,000 | |||||||
Ending balance at Jun. 30, 2023 | $ 7,194,684 | 7,134,433 | $ 1,257,254 | $ 4,834 | 6,068,613 | (236,222) | 39,954 | 60,251 |
Common stock, ending balance (in shares) at Jun. 30, 2023 | 483,320,606,000 | |||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2023 | 51,964,122 | 51,964,122,000 | ||||||
Beginning 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, beginning 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 | $ (243,302) | (243,302) | (243,302) | |||||
Dividends declared on preferred stock | (44,790) | (44,790) | (44,790) | 0 | ||||
Capital contributions | 32,435 | 32,435 | ||||||
Capital distributions | (12,881) | (12,881) | ||||||
Issuance of common stock (in shares) | 6,097,793,000 | |||||||
Issuance of common stock | 69,250 | 69,250 | $ 60 | 69,190 | ||||
Purchase of non-controlling interest | (26,042) | 0 | (26,042) | |||||
Director share grants and employee non-cash stock-based compensation (in shares) | 408,390,000 | |||||||
Director share grants and non-cash stock-based compensation | 17,821 | 17,821 | $ 4 | 19,360 | (1,543) | |||
Comprehensive income (loss): | ||||||||
Net income (loss) | 526,004 | 519,591 | 519,591 | 6,413 | ||||
Unrealized gain (loss) on available-for-sale securities, net | 2,015 | 2,015 | 2,015 | |||||
Cumulative translation adjustment, net | (1,074) | (1,074) | (1,074) | |||||
Deferred taxes | 140 | 140 | 140 | |||||
Comprehensive income (loss) | $ 527,085 | 520,672 | 6,413 | |||||
Preferred stock, ending balance (in shares) at Jun. 30, 2024 | 51,964,122 | 51,964,122,000 | ||||||
Ending balance at Jun. 30, 2024 | $ 7,420,614 | 7,326,593 | $ 1,257,254 | $ 4,897 | 6,162,872 | (143,185) | 44,755 | 94,021 |
Common stock, ending balance (in shares) at Jun. 30, 2024 | 489,732,422 | 489,732,422,000 | ||||||
Preferred stock, beginning balance (in shares) at Mar. 31, 2024 | 51,964,122,000 | |||||||
Beginning 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, beginning balance (in shares) at Mar. 31, 2024 | 483,477,713,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared on common stock | (122,433) | (122,433) | (122,433) | |||||
Dividends declared on preferred stock | (22,395) | (22,395) | (22,395) | |||||
Capital contributions | 30,297 | 30,297 | ||||||
Capital distributions | (7,015) | (7,015) | ||||||
Issuance of common stock (in shares) | 6,097,793,000 | |||||||
Issuance of common stock | 69,250 | 69,250 | $ 60 | 69,190 | ||||
Purchase of non-controlling interest | (26,042) | 0 | (26,042) | |||||
Director share grants and employee non-cash stock-based compensation (in shares) | 156,916,000 | |||||||
Director share grants and non-cash stock-based compensation | 16,809 | 16,809 | $ 1 | 18,602 | (1,794) | |||
Comprehensive income (loss): | ||||||||
Net income (loss) | 238,517 | 235,556 | 235,556 | 2,961 | ||||
Unrealized gain (loss) on available-for-sale securities, net | 412 | 412 | 412 | |||||
Cumulative translation adjustment, net | (204) | (204) | (204) | |||||
Deferred taxes | 46 | 46 | 46 | |||||
Comprehensive income (loss) | $ 238,771 | 235,810 | 2,961 | |||||
Preferred stock, ending balance (in shares) at Jun. 30, 2024 | 51,964,122 | 51,964,122,000 | ||||||
Ending balance at Jun. 30, 2024 | $ 7,420,614 | $ 7,326,593 | $ 1,257,254 | $ 4,897 | $ 6,162,872 | $ (143,185) | $ 44,755 | $ 94,021 |
Common stock, ending balance (in shares) at Jun. 30, 2024 | 489,732,422 | 489,732,422,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ 526,004 | $ 476,634 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Change in fair value of investments, net | 365,737 | 307,633 |
Change in fair value of equity investments | (17,263) | 27,630 |
Change in fair value of secured notes and bonds payable | 2,451 | (2,049) |
(Gain) loss on settlement of investments, net | (269,714) | (283,306) |
(Gain) loss on sale of originated residential mortgage loans, held-for-sale, net | (296,199) | (287,852) |
(Gain) loss on transfer of loans to real estate owned (“REO”) | (3,151) | (7,472) |
Accretion and other amortization | (45,137) | (29,892) |
Provision (reversal) for credit losses on securities, loans and REO | 1,268 | 3,009 |
Non-cash portions of servicing revenue, net | 13,071 | 120,272 |
Deferred tax provision | 145,217 | 39,626 |
Mortgage loans originated and purchased for sale, net of fees | (26,721,645) | (18,109,588) |
Sales proceeds and loan repayment proceeds for residential mortgage loans, held-for-sale | 24,615,975 | 18,174,194 |
Interest received from servicer advance investments, RMBS, loans and other | 20,744 | 27,874 |
Interest received from reverse repurchase agreements | 39,333 | 0 |
Residential mortgage loan repayment proceeds of consolidated CFEs | 181,653 | 130,704 |
Mortgage loans receivable repayment proceeds of consolidated CFEs | 0 | 166,550 |
Purchase of investments of consolidated CFEs | (12,378) | 0 |
Proceeds from sale and repayments of investments of consolidated CFEs | 10,309 | 0 |
Changes in: | ||
Servicer advances receivable, net | 240,698 | 377,567 |
Other assets | 129,409 | 16,191 |
Accrued expenses and other liabilities | (126,322) | 83,799 |
Net cash provided by (used in) operating activities | (1,199,940) | 1,231,524 |
Cash Flows From Investing Activities | ||
Business acquisitions, net of cash acquired | (603,778) | 0 |
Maturity of US Treasuries | 25,000 | 0 |
Purchase of US Treasuries | (5,047,710) | (973,795) |
Purchase of servicer advance investments | (400,652) | (445,470) |
Purchase of Excess MSR | (122,887) | 0 |
Purchase of government, government-backed and other securities | (1,330,079) | (2,898,237) |
US Treasury sales and Treasury securities payable | 4,673,753 | 0 |
Reverse repurchase agreements entered | (1,747,581) | 0 |
Reverse repurchase agreements closed | 2,020,226 | 0 |
Purchase of residential mortgage loans | 0 | (1,269) |
Purchase of SFR properties, MSRs and other assets | (149,950) | (11,975) |
Draws on revolving consumer loans | (10,098) | (13,493) |
Origination of mortgage loans receivable | (1,324,448) | 0 |
Net settlement of derivatives | 372,808 | 291,174 |
Return of investments in Excess MSRs | 22,270 | 16,489 |
Return of investments in equity method investees | 25,376 | 0 |
Principal repayments from servicer advance investments | 419,513 | 464,921 |
Principal repayments from government, government, government-backed and other securities | 400,802 | 305,887 |
Principal repayments from residential mortgage loans | 24,022 | 21,364 |
Principal repayments from consumer loans | 300,193 | 86,164 |
Loan originations and draws of consolidated CFEs | (4,766) | 0 |
Proceeds from sale of MSRs and MSR financing receivables | (2,404) | 424,034 |
Proceeds from sale of government, government-backed and other securities | 0 | 1,869,053 |
Proceeds from sale of REO | 13,612 | 13,175 |
Net cash provided by (used in) investing activities | (1,411,305) | (851,978) |
Cash Flows From Financing Activities | ||
Repayments of secured financing agreements | (39,071,785) | (24,321,697) |
Repayments of warehouse credit facilities | (26,874,997) | (18,980,639) |
Repayment of unsecured senior notes | (275,000) | 0 |
Net settlement of margin deposits under repurchase agreements and derivatives | (502,647) | (411,796) |
Repayments of secured notes and bonds payable | (2,959,966) | (3,538,076) |
Deferred financing fees | (12,225) | (11,740) |
Dividends paid on common and preferred stock | (286,596) | (284,262) |
Borrowings under secured financing agreements | 40,053,308 | 26,093,901 |
Borrowings under warehouse credit facilities | 28,510,564 | 18,706,720 |
Borrowings under Notes Receivable Financing | 352,683 | 0 |
Borrowings under secured notes and bonds payable | 2,353,384 | 2,425,593 |
Proceeds from issuance of debt obligations of consolidated CFEs | 874,615 | 150,586 |
Repayments of debt obligations of consolidated CFEs | (515,338) | (127,404) |
Proceeds from issuance of unsecured senior notes | 767,103 | 0 |
Issuance of common and preferred stock | 69,250 | 0 |
Noncontrolling interest in equity of consolidated subsidiaries - contributions | 32,435 | 0 |
Noncontrolling interest in equity of consolidated subsidiaries - distributions | (12,881) | (12,405) |
Purchase of noncontrolling interest in the SpringCastle Loans | (26,042) | 0 |
Net cash provided by (used in) financing activities | 2,475,865 | (311,219) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (135,380) | 68,327 |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 1,697,095 | 1,629,328 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 1,561,715 | 1,697,655 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest | 838,256 | 680,330 |
Cash paid during the period for income taxes | 2,956 | 1,798 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Dividends declared but not paid on common and preferred stock | 143,199 | 143,225 |
Transfer from residential mortgage loans to REO and other assets | 8,841 | 14,662 |
Residential mortgage loans subject to repurchase | 1,905,625 | 1,296,097 |
Cashless exercise of 2020 warrants (par) | 0 | 93 |
Seller financing in Marcus loan acquisition | 0 | 1,317,347 |
Consolidated Entity, Excluding Consolidated VIE | ||
Cash Flows From Investing Activities | ||
Principal repayments from mortgage loans receivable | 798,720 | 0 |
Variable Interest Entity, Primary Beneficiary | ||
Cash Flows From Investing Activities | ||
Principal repayments from mortgage loans receivable | $ 236,753 | $ 0 |
BUSINESS AND ORGANIZATION
BUSINESS AND ORGANIZATION | 6 Months Ended |
Jun. 30, 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 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 June 30, 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/Joint Venture, 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”), its company 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. NRM and Newrez are 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”), US 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 24 for additional information regarding Rithm Capital’s taxable REIT subsidiaries (“TRSs”). Acquisition of Computershare Mortgage Services Inc. On May 1, 2024, Rithm Capital completed the acquisition of Computershare Mortgage Services Inc. (“Computershare”) and certain affiliated companies, including Specialized Loan Servicing LLC (“SLS”), and the simultaneous merger of SLS and Newrez, for a purchase price of approximately $708 million (the “Computershare Acquisition”). The Computershare Acquisition included approximately $56.0 billion unpaid principal balance (“UPB”) of mortgage servicing rights (“MSRs”) and $98 billion of third-party servicing UPB, along with SLS’s origination services business. Refer to Note 3 for further information. Transactions with Great Ajax Corp. On June 11, 2024, Rithm Capital completed a transaction with Great Ajax Corp., a publicly traded mortgage REIT (“Great Ajax”). As part of the transaction, RCM GA Manager, a subsidiary of Rithm Capital, entered into a management agreement to serve as Great Ajax’s external manager. In connection with the transaction, Rithm Capital purchased 2.9 million shares of Great Ajax common stock for $14 million, equal to 6.3% of shares of Great Ajax common stock outstanding as of June 30, 2024. In addition, during the quarter, Great Ajax issued five-year warrants to Rithm Capital, exercisable for shares of Great Ajax’s common stock. Refer to Note 26 for further details. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 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 concluded that certain prior period financial statements needed to be restated to account for the consolidation of certain 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, as well as an Amendment No. 1 on Form 10-Q/A (the “Amended Q1 Form 10-Q/A,” and, together with the Amended 2023 From 10-K/A, the “Amended Reports”) to its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. Such prior period financial statements are presented herein as restated. Certain prior period financial information contained in the consolidated unaudited financial statements refers to the restated financial information as of such periods contained in the Amended Reports, as applicable, and the Consolidated Financial Statements and accompanying notes contained in this report should be read in conjunction with the Amended Reports. 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. 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”), MSRs, MSR financing receivables, servicer advance investments, RMBS issued by either public trusts or private label securitization entities (securities issued as such, known as “Non-Agency”) 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. See Note 2 to the Company’s Consolidated Financial Statements included in the Company’s Amended 2023 Form 10-K/A for the complete listing of the significant accounting policies. Recent Accounting Pronouncements 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 became effective for the Company’s interim and annual periods beginning January 1, 2024. 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 the Company’s annual period ending December 31, 2024 and interim periods starting in 2025. The Company does not expect the adoption of the new standard to have a material effect on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740) , which focuses on income tax disclosures around effective tax rates and cash income taxes paid. This standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation, including a tabular rate reconciliation for specified categories and additional information for reconciling items that meet a quantitative threshold. The standard also requires a summary of federal, state and local, and foreign income taxes paid, net of refunds received, as well as separate disclosure of payments made to jurisdictions representing 5% or more of total income taxes paid. The new disclosures specified by ASU 2023-09 are required in the Company’s annual financial statements beginning with the year ending December 31, 2025, with early adoption permitted. 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 the Company beginning January 1, 2025, 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. |
BUSINESS ACQUISITIONS
BUSINESS ACQUISITIONS | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
BUSINESS ACQUISITIONS | BUSINESS ACQUISITIONS Acquisition of Computershare Mortgage Services Inc. Rithm Capital completed the Computershare Acquisition and simultaneous merger of SLS and Newrez in May 2024 as part of its strategy to expand its subservicing capabilities. Rithm Capital accounted for this transaction using the acquisition method which requires, among other things, that the assets acquired and liabilities assumed be recognized at fair value as of the acquisition date. Purchase Price Allocation The following table summarizes the allocation of the total consideration paid to acquire the assets and assume the liabilities related to Computershare Acquisition during the quarter: ($ in millions) Computershare Total Consideration $ 708.0 Assets Residential mortgage loans, held-for-sale 2.4 Servicer advances receivable 275.8 Mortgage servicing rights, at fair value 696.5 Cash and cash equivalents 102.0 Restricted cash 2.2 Other assets 84.0 Total Assets Acquired $ 1,162.9 Liabilities Accrued expenses and other liabilities 236.1 Secured notes and bonds payable 190.6 Total Liabilities Assumed $ 426.7 Noncontrolling interest $ — Net Assets $ 736.2 Bargain Purchase Gain $ 28.2 On May 1, 2024, Rithm Capital acquired 100% of the outstanding equity interests of Computershare and certain affiliated companies, including SLS, for a GAAP purchase price of $708.0 million. At the time of acquisition, SLS and Newrez merged. Upon completing the Computershare Acquisition, the consideration transferred for the acquired assets and assumed liabilities was determined to be less than the net assets acquired from Computershare, resulting in an economic gain (“Bargain Purchase”). Rithm Capital completed the required reassessment to validate that all assets acquired and liabilities assumed on the acquisition date had been identified and appropriately measured in accordance with ASC 805. Based on the reassessment, the transaction resulted in a Bargain Purchase gain of $28.2 million, which has been included in Other income (loss), net within the Consolidated Statements of Operations for the six months ended June 30, 2024. The bargain purchase gain was primarily driven by the change in fair value of acquired MSR between the signing and closing dates of the acquisition as well as projected integration costs to be incurred after acquisition and not included in the acquired liabilities. The estimate of fair value of assets and liabilities required the use of significant assumptions and estimates. Critical estimates included, but were not limited to, future expected cash flows, including projected revenues and expenses, and the applicable discount rates. These estimates were based on assumptions that management believes to be reasonable; however, actual results may differ materially from these estimates. The assessment of fair value is preliminary and is based on information that was available to management at the time the consolidated financial statements were prepared. Those estimates and assumptions are subject to change as management obtains additional information related to those estimates during the applicable measurement period. The most significant open items necessary to complete are related to Servicer advance receivables, mortgage servicing rights, other assets and other liabilities. The final acquisition accounting adjustments, including those resulting from conforming Computershare’s accounting policies to those of Rithm Capital’s, could differ materially. The results of Computershare’s operations have been included in the Company’s Consolidated Statements of Operations from May 1, 2024 through June 30, 2024 and represent $33.6 million of revenue and $19.3 million of net income. Acquisition-related costs are expensed in the period incurred. Rithm Capital recognized $14.9 million of Computershare Acquisition related costs that were expensed for the six months ended June 30, 2024. These costs are grouped and presented within Compensation and benefits and General and administrative expenses in the Consolidated Statements of Operations. The following table presents the details of identifiable intangible assets acquired: ($ in millions) Estimated Useful Life Amount Customer Relationships 4.5 $ 16.0 Total identifiable intangible assets $ 16.0 Rithm Capital amortizes finite lived intangible assets on a straight-line basis over their respective useful lives. Unaudited Supplemental Pro Forma Financial Information The following table presents unaudited pro forma combined revenues and income before income taxes for the three and six months ended June 30, 2024 and 2023 prepared as if the Computershare Acquisition had been consummated on January 1, 2023: Three Months Ended Six Months Ended Pro Forma (in millions) 2024 2023 2024 2023 Revenues $ 1,246.2 $ 1,216.7 $ 2,623.9 $ 2,089.2 Income (loss) before income taxes 294.7 458.7 695.7 501.5 The unaudited supplemental pro forma financial information reflects, among other things, financing adjustments, amortization of intangibles and transactions costs. The unaudited supplemental pro forma financial information has not been adjusted to reflect all conforming of accounting policies. The unaudited supplemental pro forma financial information does not include any anticipated synergies or other anticipated benefits of the Computershare Acquisition and, accordingly, the unaudited supplemental pro forma financial information is not necessarily indicative of either future results of operations or results that might have been achieved had the Computershare Acquisition occurred on January 1, 2023, the beginning of the earliest period presented. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Rithm Capital conducts its business through five reportable segments: (i) Origination and Servicing, (ii) Investment Portfolio, (iii) Mortgage Loans Receivable, (iv) Asset Management and (v) Corporate. The Company aggregated the segments to reflect its approach to allocating capital and making investment decisions to its portfolio assets. 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 Corporate segment primarily consists of general and administrative expenses, corporate cash and related interest income, senior unsecured notes (Note 18) and related interest expense. The following tables summarize segment financial information, which in total reconciles to the same data for Rithm Capital on a consolidated basis: Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Corporate Total Three Months Ended June 30, 2024 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 442,016 $ 56,962 $ — $ — $ — $ 498,978 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(165,138)) (127,401) 59,503 — — — (67,898) Servicing revenue, net 314,615 116,465 — — — 431,080 Interest income 178,445 235,662 59,573 4,971 2 478,653 Gain on originated residential mortgage loans, HFS, net 155,771 (2,030) — — — 153,741 Other investment portfolio revenues — 56,500 — — — 56,500 Asset management revenues — — — 109,433 — 109,433 Total revenues 648,831 406,597 59,573 114,404 2 1,229,407 Interest expense and warehouse line fees 152,477 254,331 29,106 8,333 21,697 465,944 General and administrative 91,057 60,704 6,306 31,440 17,616 207,123 Compensation and benefits 184,853 3,478 9,113 51,982 21,022 270,448 Total operating expenses 428,387 318,513 44,525 91,755 60,335 943,515 Realized and unrealized gains (losses), net — (41,975) 18,739 8,467 — (14,769) Other income (loss), net 27,293 (8,810) (2,116) 2,675 — 19,042 Total other income (loss) 27,293 (50,785) 16,623 11,142 — 4,273 Income (loss) before income taxes 247,737 37,299 31,671 33,791 (60,333) 290,165 Income tax expense (benefit) 38,960 2,909 1,952 7,827 — 51,648 Net income (loss) 208,777 34,390 29,719 25,964 (60,333) 238,517 Noncontrolling interests in income (loss) of consolidated subsidiaries 1,016 1,110 — 835 — 2,961 Dividends on preferred stock — — — — 22,395 22,395 Net income (loss) attributable to common stockholders $ 207,761 $ 33,280 $ 29,719 $ 25,129 $ (82,728) $ 213,161 Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Corporate Total Six Months Ended June 30, 2024 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 839,494 $ 129,375 $ — $ — $ — $ 968,869 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(281,977)) (34,040) 50,317 — — — 16,277 Servicing revenue, net 805,454 179,692 — — — 985,146 Interest income 318,466 460,805 124,293 4,971 4 908,539 Gain on originated residential mortgage loans, HFS, net 301,640 (5,441) — — — 296,199 Other investment portfolio revenues — 114,848 — — — 114,848 Asset management revenues (A) — — — 185,293 — 185,293 Total revenues 1,425,560 749,904 124,293 190,264 4 2,490,025 Interest expense and warehouse line fees 283,651 482,405 61,520 15,954 32,241 875,771 General and administrative 174,621 127,701 11,060 63,375 27,560 404,317 Compensation and benefits 338,659 8,221 20,416 115,094 23,836 506,226 Total operating expenses 796,931 618,327 92,996 194,423 83,637 1,786,314 Realized and unrealized gains (losses), net — (104,545) 43,305 1,625 — (59,615) Other income (loss), net 27,257 (5,128) (1,842) 6,644 37 26,968 Total other income (loss) 27,257 (109,673) 41,463 8,269 37 (32,647) Income (loss) before income taxes 655,886 21,904 72,760 4,110 (83,596) 671,064 Income tax expense (benefit) 135,161 4,157 1,619 4,123 — 145,060 Net income (loss) 520,725 17,747 71,141 (13) (83,596) 526,004 Noncontrolling interests in income (loss) of consolidated subsidiaries 1,071 3,147 — 2,195 — 6,413 Dividends on preferred stock — — — — 44,790 44,790 Net income (loss) attributable to common stockholders $ 519,654 $ 14,600 $ 71,141 $ (2,208) $ (128,386) $ 474,801 (A) Includes $4.9 million of asset management related interest income (Note 22). Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Corporate Total June 30, 2024 Investments $ 11,635,825 $ 13,633,989 $ 2,049,266 $ — $ — $ 27,319,080 Cash and cash equivalents 614,849 466,450 48,894 105,895 2,648 1,238,736 Restricted cash 153,526 94,085 36,020 13,324 — 296,955 Other assets 3,835,566 3,714,972 107,794 1,117,622 23,504 8,799,458 Goodwill 24,376 5,092 55,731 46,658 — 131,857 Assets of consolidated CFEs — 3,359,187 519,604 354,012 — 4,232,803 Total assets $ 16,264,142 $ 21,273,775 $ 2,817,309 $ 1,637,511 $ 26,152 $ 42,018,889 Debt $ 8,586,918 $ 14,663,902 $ 1,611,055 $ 439,520 $ 1,031,690 $ 26,333,085 Other liabilities 3,669,928 551,537 21,963 234,000 211,929 4,689,357 Liabilities of consolidated CFEs — 2,899,877 452,230 223,726 — 3,575,833 Total liabilities 12,256,846 18,115,316 2,085,248 897,246 1,243,619 34,598,275 Total equity 4,007,296 3,158,459 732,061 740,265 (1,217,467) 7,420,614 Noncontrolling interests in equity of consolidated subsidiaries 8,849 40,789 — 44,383 — 94,021 Total Rithm Capital stockholders’ equity $ 3,998,447 $ 3,117,670 $ 732,061 $ 695,882 $ (1,217,467) $ 7,326,593 Investments in equity method investees $ 23,436 $ 66,248 $ — $ 113,355 $ — $ 203,039 December 31, 2023 (As Restated) Total Assets $ 13,671,626 $ 21,824,007 $ 2,498,132 $ 1,694,954 $ 28,365 $ 39,717,084 Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Corporate Total Three Months Ended June 30, 2023 (As Restated) Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 359,854 $ 105,493 $ — $ — $ — $ 465,347 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(139,410)) 45,767 (23,735) — — — 22,032 Servicing revenue, net 405,621 81,758 — — — 487,379 Interest income 129,239 206,340 49,588 — — 385,167 Gain on originated residential mortgage loans, HFS, net 144,318 34,266 — — — 178,584 Other investment portfolio revenues — 59,209 — — — 59,209 Asset management revenues — — — — — — Total revenues 679,178 381,573 49,588 — — 1,110,339 Interest expense and warehouse line fees 110,219 181,085 24,359 — 8,572 324,235 General and administrative 75,538 85,624 4,440 — 16,316 181,918 Compensation and benefits 161,600 7,963 10,355 — 9,688 189,606 Total operating expenses 347,357 274,672 39,154 — 34,576 695,759 Realized and unrealized gains (losses), net 274 58,633 17,626 — — 76,533 Other income (loss), net (5,179) (31,211) (822) — (10,686) (47,898) Total other income (loss) (4,905) 27,422 16,804 — (10,686) 28,635 Income (loss) before income taxes 326,916 134,323 27,238 (45,262) 443,215 Income tax expense (benefit) 49,207 8,304 (981) — — 56,530 Net income (loss) 277,709 126,019 28,219 — (45,262) 386,685 Noncontrolling interests in income (loss) of consolidated subsidiaries 386 6,503 — — — 6,889 Dividends on preferred stock — — — — 22,395 22,395 Net income (loss) attributable to common stockholders $ 277,323 $ 119,516 $ 28,219 $ — $ (67,657) $ 357,401 Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Corporate Total Six Months Ended June 30, 2023 (As Restated) Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 709,278 $ 225,726 $ — $ — $ — $ 935,004 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(245,101)) 8,241 (128,513) — — — (120,272) Servicing revenue, net 717,519 97,213 — — — 814,732 Interest income 239,005 376,926 99,259 — — 715,190 Gain on originated residential mortgage loans, HFS, net 252,539 35,313 — — — 287,852 Other investment portfolio revenues — 117,353 — — — 117,353 Asset management revenues — — — — — — Total revenues 1,209,063 626,805 99,259 — — 1,935,127 Interest expense and warehouse line fees 221,288 338,995 50,198 — 17,969 628,450 General and administrative 156,370 160,317 8,569 — 24,141 349,397 Compensation and benefits 322,114 15,099 22,457 — 18,816 378,486 Total operating expenses 699,772 514,411 81,224 — 60,926 1,356,333 Realized and unrealized gains (losses), net 251 (6,250) 16,627 — — 10,628 Other income (loss), net (18,606) (36,481) 891 — (18,868) (73,064) Total other income (loss) (18,355) (42,731) 17,518 — (18,868) (62,436) Income (loss) before income taxes 490,936 69,663 35,553 — (79,794) 516,358 Income tax expense (benefit) 45,535 (2,736) (3,075) — — 39,724 Net income (loss) 445,401 72,399 38,628 — (79,794) 476,634 Noncontrolling interests in income (loss) of consolidated subsidiaries 344 5,245 — — — 5,589 Dividends on preferred stock — — — — 44,790 44,790 Net income (loss) attributable to common stockholders $ 445,057 $ 67,154 $ 38,628 $ — $ (124,584) 426,255 |
MORTGAGE SERVICING RIGHTS AND M
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing of Financial Assets [Abstract] | |
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES | MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES The following table summarizes activity related to MSRs and MSR financing receivables: Balance as of December 31, 2023 $ 8,405,938 Purchases, net — Transfers — Acquisition 697,494 Originations (A) 580,244 Sales 2,404 Change in fair value due to: Realization of cash flows (B) (284,189) Change in valuation inputs and assumptions 291,440 Balance as of June 30, 2024 $ 9,693,331 (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 Six Months Ended 2024 2023 2024 2023 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 453,989 $ 432,750 $ 884,103 $ 871,800 Ancillary and other fees 44,989 32,597 84,766 63,204 Servicing fee revenue, net and fees 498,978 465,347 968,869 935,004 Change in fair value due to: Realization of cash flows (A) (165,138) (139,410) (281,977) (245,101) Change in valuation inputs and assumptions, net of realized gains (losses) (B) 97,240 161,442 298,254 124,829 Servicing revenue, net $ 431,080 $ 487,379 $ 985,146 $ 814,732 (A) Net of $2.2 million of realization of cash flows related to excess spread financing (Note 12). (B) Net of $6.8 million of change in valuation inputs and assumptions related to excess spread financing (Note 12). The following table summarizes MSRs and MSR financing receivables by type as of June 30, 2024: UPB of Underlying Mortgages Weighted Average Life (Years) (A) Carrying Value (B) Agency $ 381,516,738 6.6 $ 6,079,335 Non-Agency 72,106,898 5.4 885,053 Ginnie Mae (C) 133,419,752 6.3 2,728,943 Total/Weighted Average $ 587,043,388 6.4 $ 9,693,331 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Represents fair value. As of June 30, 2024, weighted average discount rates of 8.9% (range of 8.7% – 10.3%) were used to value Rithm Capital’s MSRs and MSR financing receivables. (C) As of June 30, 2024, Rithm Capital holds approximately $1.9 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 recognizes delinquent loans as if they had been repurchased with a corresponding liability. As of June 30, 2024, Rithm Capital reflected approximately $1.9 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 re-recognizing loans eligible for repurchase. Rather, upon repurchase of a loan, the MSR is written off. As of June 30, 2024, Rithm Capital holds approximately $0.4 billion of such repurchased loans presented within Residential mortgage loans, held for sale on its Consolidated Balance Sheets. Onity MSR Financing Receivable Transactions In July 2017, Onity Group Inc. (formerly known as Ocwen Financial Corporation) (collectively with certain affiliates, “Onity”), and subsequently PHH Mortgage Corporation (“PHH”) (as successor by merger to Onity) and Rithm Capital entered into an agreement to transfer to Rithm Capital Onity’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, Onity 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 $10.9 billion UPB, as June 30, 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, at fair value. 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 June 30, 2024 December 31, 2023 California 16.7 % 17.1 % Florida 8.4 % 8.6 % Texas 6.5 % 6.2 % New York 5.8 % 6.0 % Washington 5.3 % 5.8 % New Jersey 4.1 % 4.3 % Virginia 3.6 % 3.6 % Maryland 3.4 % 3.4 % Illinois 3.3 % 3.3 % Georgia 3.1 % 3.0 % Other US 39.8 % 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 Servicing and 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 June 30, 2024 and 2023 was $213.7 billion and $95.6 billion, respectively. Rithm Capital earned servicing revenue of $89.1 million and $69.1 million for the six months ended June 30, 2024 and 2023, respectively, related to unaffiliated serviced loans 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 June 30, 2024, PHH and Valon Mortgage, Inc. (“Valon”) subservice 7.4% and 4.3%, respectively. The remaining 88.3% 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 25) 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: June 30, 2024 December 31, 2023 Principal and interest advances $ 624,563 $ 616,801 Escrow advances (taxes and insurance advances) 1,358,320 1,442,697 Foreclosure advances 891,268 767,171 Gross advance balance (A)(B) 2,874,151 2,826,669 Reserves, impairment, unamortized discount, net of recovery accruals (99,641) (66,419) Total servicer advances receivable $ 2,774,510 $ 2,760,250 (A) Includes $550.8 million and $585.0 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B) Includes $367.8 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. 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 the respective loan or REO liquidation proceeds may be recovered from pool-level proceeds. Furthermore, to the extent that advances are not recoverable by Rithm Capital as a result of the subservicer’s failure to comply with applicable requirements in the relevant servicing agreements, Rithm Capital has a contractual right to be reimbursed by the subservicer. For advances on loans that have been liquidated, sold, paid in full or modified, the Company has provisioned $99.5 million, or 3.5%, and $93.7 million, or 3.3%, for expected non-recovery of advances as of June 30, 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 20,652 Write-offs (14,793) Balance at June 30, 2024 $ 99,540 See Note 18 regarding the financing of MSRs and servicer advances receivable. Excess MSR assets include Rithm Capital’s ownership of Excess MSRs, and associated recapture agreements, acquired from and serviced by Mr. Cooper. Prior to June 20, 2024, Rithm Capital owned certain pools of excess MSR directly and certain pools through a joint venture with the Former Manager (the “Fortress Excess MSR JV”). On June 20, 2024, Rithm Capital, together with certain Sculptor nonconsolidated funds, acquired an Excess MSR portfolio from the Former Manager (including the Former Manager’s ownership in the Fortress Excess MSR JV for approximately $124 million. A new joint venture with such Sculptor nonconsolidated funds was formed for the acquisition. Rithm Capital owns an 80.0% interest in and manages the joint venture, and as a result, consolidates the joint venture. Following the acquisition from the Former Manager, all of Rithm Capital’s ownership in pools of excess MSRs is consolidated on its Consolidated Balance Sheet and is presented in Other Assets at fair value. See Note 20 for noncontrolling interests related to these excess MSRs. Mr. Cooper, 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. As part of the Computershare Acquisition (Note 3), Rithm Capital acquired MSRs owned by SLS underlying certain Excess MSRs owned by Rithm Capital. Accordingly, those Excess MSRs have been reclassified to full MSRs on Rithm Capital’s Consolidated Balance Sheets. The table below summarizes the components of Excess MSRs: Investments in Excess MSRs The following table presents activity related to the carrying value of investments in Excess MSRs: Total (A) Balance as of December 31, 2023 $ 208,385 Purchases 122,887 Interest income 10,522 Other income (656) Proceeds from repayments (19,122) Proceeds from sales — Change in fair value 19,430 Acquisition of assets from Fortress Excess MSR JV 55,192 Reclassification of SLS serviced Excess MSRs to Full MSRs (1,032) Balance as of June 30, 2024 $ 395,606 (A) Underlying loans serviced by Mr. Cooper Group Inc. (“Mr. Cooper”) and SLS (Excess MSRs with underlying loans serviced by SLS were reclassified to full MSRs upon the acquisition of Computershare on May 1, 2024). The following summarizes investments in Excess MSRs: June 30, 2024 December 31, 2023 Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis Carrying Value (B) Carrying Value (B) Rithm Capital (C, D) Mr. Cooper Total 65.0% – 80.0% (69.9%) 20.0% – 35.0% 6 $ 339,048 $ 395,606 $ 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 June 30, 2024 (Note 14) on $14.0 billion UPB underlying these Excess MSRs. Changes in fair value of Excess MSR investments consist of the following: Three Months Ended Six Months Ended 2024 2023 2024 2023 Original and Recaptured Pools $ 21,352 $ (599) $ 19,430 $ (10,417) As of June 30, 2024, a weighted average discount rate of 8.8% was used to value Rithm Capital’s investments in Excess MSRs. Excess MSR Joint Ventures As set forth above, Rithm Capital, together with certain Sculptor nonconsolidated funds, formed a new joint venture which acquired the Former Manager’s ownership in the Fortress Excess MSR JV and is consolidated on Rithm Capital’s Consolidated Balance Sheets. As a result, Rithm Capital’s investment in the former Excess MSR JV is now included in Rithm Capital’s direct investments in Excess MSRs. The following table summarizes the activity of Rithm Capital’s investments in Excess MSR equity method investees: Balance at December 31, 2023 $ 62,765 Distributions of earnings from equity method investees (344) Distributions of capital from equity method investees (8,846) Change in fair value of investments in equity method investees 1,617 Equity method investees transferred to direct excess MSR (55,192) Indirect Excess MSR at June 30, 2024 $ — |
GOVERNMENT AND GOVERNMENT-BACKE
GOVERNMENT AND GOVERNMENT-BACKED SECURITIES | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
GOVERNMENT AND GOVERNMENT-BACKED SECURITIES | GOVERNMENT AND GOVERNMENT-BACKED SECURITIES Government and Government-backed securities include Agency RMBS issued by the GSEs or Ginnie Mae (securities issued as such, known as “Agency”) and U.S. Treasuries. The following tables summarize Agency and Treasury securities by designation: June 30, 2024 December 31, 2023 Gross Unrealized Weighted Average (As Restated) Outstanding Face Amount Gains Losses Carrying Value (A) Number of Securities Coupon Yield Life (Years) (B) Carrying Value (A) Securities designated as available for sale (“AFS”): Agency (C) $ 71,981 $ — $ — $ 62,998 1 3.5 % 3.5 % 10.7 $ 65,496 Securities measured at fair value through net income: Agency (C) 9,489,312 3,291 (66,040) 9,237,239 46 5.1 % 5.2 % 8.7 8,467,634 Total/Weighted Average $ 9,561,293 $ 3,291 $ (66,040) $ 9,300,237 47 5.6 % 8.0 % 8.6 $ 8,533,130 (A) Fair value is equal to the carrying value for all securities. See Note 19 regarding the fair value measurements. (B) Based on the timing of expected principal reduction on the assets. (C) All fixed-rate as of June 30, 2024. June 30, 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 $ 24,860 $ 24,861 $ 1 2 5.4 % 0.1 $ 24,553 The following table summarizes purchases and sales of Agency and Treasury securities: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Treasury (A) Agency Treasury (A) Agency Treasury (A) Agency Treasury Agency Purchases Face $ 25.0 $ — $ 1,000.0 $ — $ 4,825.0 $ 1,287.0 $ 1,000.0 $ 2,162.4 Purchase price 24.7 — 973.8 — 4,798.6 1,255.9 973.8 2,154.4 Sales Face $ 3,000.0 $ — $ — $ — $ 3,000.0 $ — $ — $ 1,462.4 Amortized cost 2,976.3 — — — 2,976.3 — — 1,442.8 Sale price 2,957.5 — — — 2,957.5 — — 1,395.9 Realized gain (loss) (18.8) — — — (18.8) — — (46.9) (A) Excludes treasury short sales. Refer to Note 17 for information regarding short sales. As of June 30, 2024, Rithm Capital had no unsettled trades. |
RESIDENTIAL MORTGAGE LOANS
RESIDENTIAL MORTGAGE LOANS | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
RESIDENTIAL MORTGAGE LOANS | RESIDENTIAL MORTGAGE LOANS 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 June 30, 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 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: June 30, 2024 December 31, 2023 (As Restated) Outstanding Face Amount Carrying Loan Weighted Average Yield Weighted Average Life (Years) (A) Carrying Value Investments of consolidated CFEs (B) $ 3,577,247 $ 3,347,246 10,411 5.5 % 25.9 $ 3,038,587 Residential mortgage loans, HFI, at fair value $ 421,507 $ 368,866 7,823 8.5 % 5.2 $ 379,044 Residential mortgage loans, HFS Acquired performing loans (C) 61,427 53,951 1,790 8.0 % 5.5 57,038 Acquired non-performing loans (D) 21,874 18,943 247 6.1 % 3.9 21,839 Total residential mortgage loans, HFS $ 83,301 $ 72,894 2,037 7.5 % 5.1 $ 78,877 Residential mortgage loans, HFS, at fair value Acquired performing loans (C)(E) 850,561 834,383 3,041 5.8 % 11.2 400,603 Acquired non-performing loans (D)(E) 233,580 214,071 1,130 3.7 % 23.0 204,950 Originated loans 2,723,582 2,789,475 9,872 7.2 % 29.2 1,856,312 Total residential mortgage loans, HFS, at fair value $ 3,807,723 $ 3,837,929 14,043 6.7 % 24.8 $ 2,461,865 (A) For loans classified as Level 3 in the fair value hierarchy, the weighted average life is based on the expected timing of the receipt of cash flows. For Level 2 loans, the weighted average life is based on the contractual term of the loan. (B) Residential mortgage loans 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. (C) Performing loans are generally placed on non-accrual status when principal or interest is 90 days or more past due. (D) As of June 30, 2024, Rithm Capital has placed non-performing loans, HFS on non-accrual status, except as described in (E) below. (E) Includes $217.2 million and $192.6 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. 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 June 30, 2024 December 31, 2023 California 11.2 % 8.3 % Florida 9.2 % 9.3 % Texas 8.6 % 9.5 % New York 5.8 % 8.0 % Georgia 4.3 % 4.9 % New Jersey 3.7 % 3.9 % Maryland 3.4 % 3.3 % Illinois 3.3 % 3.5 % North Carolina 3.3 % 3.2 % Virginia 3.1 % 3.6 % Other US 44.1 % 42.5 % 100.0 % 100.0 % See Note 18 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: June 30, 2024 December 31, 2023 Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB 90+ $ 340,323 $ 304,967 $ (35,356) $ 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 — — 25,518,069 25,518,069 Sales — — (24,568,303) (24,568,303) Purchases/additional fundings — — 922,076 922,076 Proceeds from repayments (23,313) (5,518) (42,440) (71,271) Transfer of loans (to) from other assets (A) — (2,479) (463,263) (465,742) Transfer of loans to REO (1,943) (1,325) (2,422) (5,690) Transfers of loans to held-for-sale (52) — — (52) Transfer of loans from held-for-investment — — 52 52 Impairment (loss) reversal — 3,339 — 3,339 Fair value adjustments due to: Changes in instrument-specific credit risk 13,632 — 10,466 24,098 Other factors 1,498 — 1,829 3,327 Balance at June 30, 2024 $ 368,866 $ 72,894 $ 3,837,929 $ 4,279,689 (A) Includes loans transferred to consolidated CFEs and receivable modifications resulting in transfers between other assets and residential mortgage loans. 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 Six Months Ended 2024 2023 2024 2023 Interest income: Loans HFI, at fair value $ 7,579 $ 9,214 $ 15,436 $ 18,723 Loans HFS, at lower of cost or fair value 1,279 1,884 2,140 3,388 Loans HFS, at fair value 45,644 41,745 81,660 79,031 Total interest income $ 54,502 $ 52,843 $ 99,236 $ 101,142 Interest expense: Loans HFI, at fair value 4,032 4,849 8,256 9,519 Loans HFS, at lower of cost or fair value 1,007 982 1,723 1,889 Loans HFS, at fair value 52,328 42,787 89,566 85,503 Total interest expense $ 57,367 $ 48,618 $ 99,545 $ 96,911 Net interest income $ (2,865) $ 4,225 $ (309) $ 4,231 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 Six Months Ended 2024 2023 2024 2023 Gain (loss) on residential mortgage loans originated and sold, net (A) $ (217,515) $ (93,059) $ (341,629) $ (127,373) Gain (loss) on settlement of residential mortgage loan origination derivative instruments (B) 10,077 (11,483) (5,447) (1,579) MSRs retained on transfer of residential mortgage loans (C) 364,305 202,303 580,244 342,816 Other (D) 5,114 2,302 11,608 (3,141) Realized gain on sale of originated residential mortgage loans, net $ 161,981 $ 100,063 $ 244,776 $ 210,723 Change in fair value of residential mortgage loans (8,907) 27,891 5,361 59,489 Change in fair value of interest rate lock commitments (Note 17) (14,817) (19,898) (7,332) 6,342 Change in fair value of derivative instruments (Note 17) 15,484 70,528 53,394 11,298 Gain on originated residential mortgage loans, HFS, net $ 153,741 $ 178,584 $ 296,199 $ 287,852 (A) Includes residential mortgage loan origination fees of $233.8 million and $94.0 million for the three months ended June 30, 2024 and 2023, respectively. Includes residential mortgage loan origination fees of $411.5 million and $162.9 million for the six months ended June 30, 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
CONSUMER LOANS | 6 Months Ended |
Jun. 30, 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) consumer loans purchased from SpringCastle (the “SpringCastle loans” or “SpringCastle”) through a co-investment. 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. On June 28, 2024, Rithm Capital purchased the remaining 46.5% interest in the SpringCastle loans from the co-investor for a total purchase price of $22.0 million. 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) June 30, 2024 SpringCastle $ 231,945 $ 244,578 18.2 % 3.8 Marcus 779,708 701,789 10.9 % 0.9 Total consumer loans $ 1,011,653 $ 946,367 12.5 % 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 18 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: June 30, 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 $ 227,741 $ 240,197 $ 12,456 $ 255,441 $ 280,577 $ 25,136 90+ 4,204 4,381 177 4,661 5,055 394 Total SpringCastle $ 231,945 $ 244,578 $ 12,633 $ 260,102 $ 285,632 $ 25,530 Marcus Current $ 690,063 $ 621,103 $ (68,960) $ 1,014,404 $ 956,076 $ (58,328) 90+ 89,645 80,686 (8,959) 34,268 32,297 (1,971) Total Marcus $ 779,708 $ 701,789 $ (77,919) $ 1,048,672 $ 988,373 $ (60,299) $ 1,011,653 $ 946,367 $ (65,286) $ 1,308,774 $ 1,274,005 $ (34,769) (A) Consumer loans are carried at fair value under the fair value option election. See Note 19 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) 10,098 Proceeds from repayments (302,325) Accretion of loan discount and premium amortization, net 15,978 Fair value adjustments due to: Changes in instrument-specific credit risk (31,634) Other factors (19,755) Balance at June 30, 2024 $ 946,367 (A) Represents draws on consumer loans with revolving privileges. |
SINGLE-FAMILY RENTAL PROPERTIES
SINGLE-FAMILY RENTAL PROPERTIES | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2024, Rithm Capital transferred ten SFR properties to HFS. The following table summarizes the net carrying value of investments in SFR properties: June 30, 2024 December 31, 2023 Land $ 189,694 $ 183,359 Building 758,777 733,437 Capital improvements 145,465 138,869 Total gross investment in SFR properties 1,093,936 1,055,665 Accumulated depreciation (68,612) (53,737) Investment in SFR properties, net $ 1,025,324 $ 1,001,928 Depreciation expense for the six months ended June 30, 2024 and 2023 totaled $15.0 million and $13.9 million, respectively, and is included in other income (loss), net in the Consolidated Statements of Operations. As of June 30, 2024 and December 31, 2023, the carrying amount of the SFR properties includes capitalized acquisition costs of $7.3 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 41,955 — 41,955 Transfers to HFS (3,270) 3,270 — Dispositions (1,140) (2,372) (3,512) Accumulated depreciation (14,895) (152) (15,047) Balance at June 30, 2024 $ 1,023,007 $ 2,317 $ 1,025,324 Rithm Capital generally rents its SFR properties under non-cancelable lease agreements with a term of one Remainder of 2024 $ 32,296 2025 and thereafter 20,171 Total $ 52,467 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 132 — 132 Transfer to HFS (10) 10 — Disposition of SFR units (4) (8) (12) Balance at June 30, 2024 4,000 8 4,008 See Note 18 regarding the financing of SFR Properties. |
MORTGAGE LOANS RECEIVABLE
MORTGAGE LOANS RECEIVABLE | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
MORTGAGE LOANS RECEIVABLE | MORTGAGE LOANS RECEIVABLE Genesis specializes in originating and managing a portfolio of primarily short-term mortgage loans to fund the construction and development of, or investment in, residential properties. On August 24, 2023, Rithm Capital acquired a portfolio of loans from Morgan Stanley Bank, N.A. with a face value of $148.4 million. The portfolio consists of fixed-rate bridge and renovation loans and is master serviced by Genesis. The following table summarizes Mortgage loans receivable, at fair value and mortgage loans receivable held by consolidated CFEs by loan type as of June 30, 2024: 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 $ 886,359 $ 211,184 $ 1,097,543 43.3 % 396 28.3 % 11.2 % 18.3 72.8% / 62.3% Bridge 898,306 220,071 1,118,377 43.8 % 575 41.2 % 10.1 % 24.6 67.7% Renovation 264,601 60,848 325,449 12.9 % 426 30.5 % 10.5 % 12.5 81.7%/ 67.4% $ 2,049,266 $ 492,103 $ 2,541,369 100.0 % 1,397 100.0 % 10.6 % 20.4 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. See Note 19 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 loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets: Balance at December 31, 2023 (As Restated) $ 1,879,319 Initial loan advances 931,574 Construction holdbacks and draws 392,874 Paydowns and payoffs (798,720) Fair value adjustments 17,418 Purchased loans discount amortization 871 Transfer of loans to REO (4,311) Transfers from (to) assets of consolidated CFEs (369,759) Balance at June 30, 2024 $ 2,049,266 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: June 30, 2024 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 $ 1,991,233 $ 2,009,083 $ 17,850 $ 1,838,935 $ 1,837,513 $ (1,422) 90+ 45,996 40,183 $ (5,813) 41,869 41,806 (63) The following table summarizes the geographic distribution of loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets as of June 30, 2024: Percentage of Total State Concentration June 30, 2024 December 31, 2023 (As Restated) California 45.6 % 47.8 % Florida 8.8 % 7.8 % Georgia 8.0 % 2.5 % Washington 6.4 % 7.9 % New York 5.7 % 6.7 % Colorado 3.9 % 3.1 % Arizona 3.8 % 4.8 % Virginia 3.6 % 4.1 % South Carolina 2.2 % 0.6 % Texas 2.0 % 2.7 % Other US 10.0 % 12.0 % 100.0 % 100.0 % See Note 18 regarding the financing of mortgage loans receivable. |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 6 Months Ended |
Jun. 30, 2024 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | CASH, CASH EQUIVALENTS AND RESTRICTED CASH Rithm Capital considers all highly liquid short-term investments with maturities of 90 days or less when purchased to be cash equivalents. Substantially all amounts on deposit with major financial institutions exceed insured limits. Restricted cash 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: June 30, 2024 December 31, 2023 (As Restated) Cash and cash equivalents $ 1,238,736 $ 1,287,199 Restricted cash 296,955 378,048 Restricted cash of consolidated CFEs (A) 26,024 31,848 Total cash, cash equivalents and restricted cash $ 1,561,715 $ 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: June 30, 2024 December 31, 2023 (As Restated) Investment Portfolio (A) $ 105,936 $ 150,432 Origination and Servicing 153,526 195,490 Mortgage Loans Receivable (A) 40,094 37,805 Asset Management (A) 23,423 26,169 Total restricted cash $ 322,979 $ 409,896 (A) Included restricted cash related to consolidated CFEs presented within Investments, at fair value and other assets on the Consolidated Balance Sheets. |
OTHER ASSETS AND LIABILITIES
OTHER ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2024 | |
Other Income Assets And Liabilities [Abstract] | |
OTHER ASSETS AND LIABILITIES | OTHER ASSETS AND LIABILITIES Other Assets and Accrued Expenses and Other Liabilities consist of the following: Other Assets Accrued Expenses June 30, 2024 December 31, 2023 (As Restated) June 30, 2024 December 31, 2023 (As Restated) CLOs, at fair value (A) 261,492 226,486 Accounts payable $ 201,544 $ 165,144 Deferred tax asset 283,071 279,019 Accrued compensation and benefits 159,470 290,464 Derivative and hedging assets (Note 17) 54,357 28,080 Deferred tax liability 950,986 801,857 Due from related parties 38,346 32,319 Derivative liabilities (Note 17) 35,100 51,765 Equity investments (B) 244,222 173,882 Escheat payable 197,816 169,914 Excess MSRs, at fair value (Note 13) 395,606 271,150 Excess spread financing 116,142 — Goodwill (Note 15) (C) 131,857 131,857 Interest payable 186,695 166,620 Income and fees receivable 55,378 59,134 Lease liability (Note 16) 175,106 159,236 Intangible assets (Note 15) 364,942 387,920 Notes Receivable Financing (G) 352,683 — Loans receivable, at fair value (D) 29,114 31,323 Unearned income and fees 30,284 37,468 Margin receivable, net (E) 205,207 75,947 Other liabilities 238,902 223,293 Non-Agency RMBS, at fair value (A) 548,047 577,543 $ 2,644,728 $ 2,065,761 Notes receivable, at fair value (F) 364,977 398,227 Operating lease right-of-use assets (Note 16) 104,983 104,207 Other receivables 159,726 152,046 Prepaid expenses 68,724 62,513 Principal and interest receivable 154,945 168,516 Property and equipment 37,428 40,038 REO 27,163 15,507 Servicer advance investments, at fair value (Note 14) 357,220 376,881 Servicing fee receivables 162,888 156,777 Warrants, at fair value 11,564 16,599 Other assets 189,929 182,881 $ 4,251,186 $ 3,948,852 (A) Non-Agency RMBS and CLOs were reclassified from Real estate and other securities, as presented in prior periods, to Other assets on the Consolidated Balance Sheets as of June 30, 2024. (B) Represents equity investments in (i) commercial redevelopment projects and (ii) operating companies providing services throughout the real estate industry, including investments in Covius Holding Inc., 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. (C) Includes goodwill derived from the acquisition of Newrez, Guardian, Genesis and Sculptor. (D) Represents loans made pursuant to a senior credit agreement and a senior subordinated credit agreement to an entity affiliated with funds managed by an affiliate of the Former Manager. The loans are accounted for under the fair value option. (E) Represents collateral posted as a result of changes in fair value of Rithm Capital’s (i) government and government-backed securities securing its secured financing agreements and (ii) derivative instruments. (F) Represents notes receivable secured by commercial properties. The notes are accounted for under the fair value option. (G) During the second quarter of 2024, the Company transferred an investment in a note receivable with a fair value of $365.0 million subject to a repo financing of $323.5 million from a third party, to a nonconsolidated joint venture for cash consideration of $36.8 million. The transaction did not meet sale accounting under ASC 860 and, as a result, was treated as a secured borrowing for accounting purposes for which the Company elected the fair value option and is included in Other liabilities in our Consolidated Balance Sheets. The amount presented within Notes receivable financing is comprised of the repo financing and the non-recourse liability in a secured borrowing. The Company continues to reflect the transferred note in Other Assets in our Consolidated Balance Sheets, at fair value. 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 10,541 Property received in satisfaction of loan 17,934 Sales (A) (15,454) Valuation (provision) reversal (1,365) Balance at June 30, 2024 $ 27,163 (A) Recognized when control of the property has transferred to the buyer. As of June 30, 2024, Rithm Capital had residential mortgage loans and mortgage loans receivable that were in the process of foreclosure with UPBs of $58.8 million and $33.6 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 — 2,211 2,211 Proceeds from repayments (33,250) (4,420) (37,670) Balance at June 30, 2024 $ 364,977 $ 29,114 $ 394,091 The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of notes and loans receivable: June 30, 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 $ 493,354 $ 394,091 $ (99,263) $ 565,786 $ 429,550 $ (136,236) 90+ — — $ — — — $ — (A) Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements. |
EXCESS MORTGAGE SERVICING RIGHT
EXCESS MORTGAGE SERVICING RIGHTS | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing [Abstract] | |
EXCESS MORTGAGE SERVICING RIGHTS | MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES The following table summarizes activity related to MSRs and MSR financing receivables: Balance as of December 31, 2023 $ 8,405,938 Purchases, net — Transfers — Acquisition 697,494 Originations (A) 580,244 Sales 2,404 Change in fair value due to: Realization of cash flows (B) (284,189) Change in valuation inputs and assumptions 291,440 Balance as of June 30, 2024 $ 9,693,331 (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 Six Months Ended 2024 2023 2024 2023 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 453,989 $ 432,750 $ 884,103 $ 871,800 Ancillary and other fees 44,989 32,597 84,766 63,204 Servicing fee revenue, net and fees 498,978 465,347 968,869 935,004 Change in fair value due to: Realization of cash flows (A) (165,138) (139,410) (281,977) (245,101) Change in valuation inputs and assumptions, net of realized gains (losses) (B) 97,240 161,442 298,254 124,829 Servicing revenue, net $ 431,080 $ 487,379 $ 985,146 $ 814,732 (A) Net of $2.2 million of realization of cash flows related to excess spread financing (Note 12). (B) Net of $6.8 million of change in valuation inputs and assumptions related to excess spread financing (Note 12). The following table summarizes MSRs and MSR financing receivables by type as of June 30, 2024: UPB of Underlying Mortgages Weighted Average Life (Years) (A) Carrying Value (B) Agency $ 381,516,738 6.6 $ 6,079,335 Non-Agency 72,106,898 5.4 885,053 Ginnie Mae (C) 133,419,752 6.3 2,728,943 Total/Weighted Average $ 587,043,388 6.4 $ 9,693,331 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Represents fair value. As of June 30, 2024, weighted average discount rates of 8.9% (range of 8.7% – 10.3%) were used to value Rithm Capital’s MSRs and MSR financing receivables. (C) As of June 30, 2024, Rithm Capital holds approximately $1.9 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 recognizes delinquent loans as if they had been repurchased with a corresponding liability. As of June 30, 2024, Rithm Capital reflected approximately $1.9 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 re-recognizing loans eligible for repurchase. Rather, upon repurchase of a loan, the MSR is written off. As of June 30, 2024, Rithm Capital holds approximately $0.4 billion of such repurchased loans presented within Residential mortgage loans, held for sale on its Consolidated Balance Sheets. Onity MSR Financing Receivable Transactions In July 2017, Onity Group Inc. (formerly known as Ocwen Financial Corporation) (collectively with certain affiliates, “Onity”), and subsequently PHH Mortgage Corporation (“PHH”) (as successor by merger to Onity) and Rithm Capital entered into an agreement to transfer to Rithm Capital Onity’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, Onity 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 $10.9 billion UPB, as June 30, 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, at fair value. 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 June 30, 2024 December 31, 2023 California 16.7 % 17.1 % Florida 8.4 % 8.6 % Texas 6.5 % 6.2 % New York 5.8 % 6.0 % Washington 5.3 % 5.8 % New Jersey 4.1 % 4.3 % Virginia 3.6 % 3.6 % Maryland 3.4 % 3.4 % Illinois 3.3 % 3.3 % Georgia 3.1 % 3.0 % Other US 39.8 % 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 Servicing and 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 June 30, 2024 and 2023 was $213.7 billion and $95.6 billion, respectively. Rithm Capital earned servicing revenue of $89.1 million and $69.1 million for the six months ended June 30, 2024 and 2023, respectively, related to unaffiliated serviced loans 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 June 30, 2024, PHH and Valon Mortgage, Inc. (“Valon”) subservice 7.4% and 4.3%, respectively. The remaining 88.3% 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 25) 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: June 30, 2024 December 31, 2023 Principal and interest advances $ 624,563 $ 616,801 Escrow advances (taxes and insurance advances) 1,358,320 1,442,697 Foreclosure advances 891,268 767,171 Gross advance balance (A)(B) 2,874,151 2,826,669 Reserves, impairment, unamortized discount, net of recovery accruals (99,641) (66,419) Total servicer advances receivable $ 2,774,510 $ 2,760,250 (A) Includes $550.8 million and $585.0 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B) Includes $367.8 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. 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 the respective loan or REO liquidation proceeds may be recovered from pool-level proceeds. Furthermore, to the extent that advances are not recoverable by Rithm Capital as a result of the subservicer’s failure to comply with applicable requirements in the relevant servicing agreements, Rithm Capital has a contractual right to be reimbursed by the subservicer. For advances on loans that have been liquidated, sold, paid in full or modified, the Company has provisioned $99.5 million, or 3.5%, and $93.7 million, or 3.3%, for expected non-recovery of advances as of June 30, 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 20,652 Write-offs (14,793) Balance at June 30, 2024 $ 99,540 See Note 18 regarding the financing of MSRs and servicer advances receivable. Excess MSR assets include Rithm Capital’s ownership of Excess MSRs, and associated recapture agreements, acquired from and serviced by Mr. Cooper. Prior to June 20, 2024, Rithm Capital owned certain pools of excess MSR directly and certain pools through a joint venture with the Former Manager (the “Fortress Excess MSR JV”). On June 20, 2024, Rithm Capital, together with certain Sculptor nonconsolidated funds, acquired an Excess MSR portfolio from the Former Manager (including the Former Manager’s ownership in the Fortress Excess MSR JV for approximately $124 million. A new joint venture with such Sculptor nonconsolidated funds was formed for the acquisition. Rithm Capital owns an 80.0% interest in and manages the joint venture, and as a result, consolidates the joint venture. Following the acquisition from the Former Manager, all of Rithm Capital’s ownership in pools of excess MSRs is consolidated on its Consolidated Balance Sheet and is presented in Other Assets at fair value. See Note 20 for noncontrolling interests related to these excess MSRs. Mr. Cooper, 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. As part of the Computershare Acquisition (Note 3), Rithm Capital acquired MSRs owned by SLS underlying certain Excess MSRs owned by Rithm Capital. Accordingly, those Excess MSRs have been reclassified to full MSRs on Rithm Capital’s Consolidated Balance Sheets. The table below summarizes the components of Excess MSRs: Investments in Excess MSRs The following table presents activity related to the carrying value of investments in Excess MSRs: Total (A) Balance as of December 31, 2023 $ 208,385 Purchases 122,887 Interest income 10,522 Other income (656) Proceeds from repayments (19,122) Proceeds from sales — Change in fair value 19,430 Acquisition of assets from Fortress Excess MSR JV 55,192 Reclassification of SLS serviced Excess MSRs to Full MSRs (1,032) Balance as of June 30, 2024 $ 395,606 (A) Underlying loans serviced by Mr. Cooper Group Inc. (“Mr. Cooper”) and SLS (Excess MSRs with underlying loans serviced by SLS were reclassified to full MSRs upon the acquisition of Computershare on May 1, 2024). The following summarizes investments in Excess MSRs: June 30, 2024 December 31, 2023 Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis Carrying Value (B) Carrying Value (B) Rithm Capital (C, D) Mr. Cooper Total 65.0% – 80.0% (69.9%) 20.0% – 35.0% 6 $ 339,048 $ 395,606 $ 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 June 30, 2024 (Note 14) on $14.0 billion UPB underlying these Excess MSRs. Changes in fair value of Excess MSR investments consist of the following: Three Months Ended Six Months Ended 2024 2023 2024 2023 Original and Recaptured Pools $ 21,352 $ (599) $ 19,430 $ (10,417) As of June 30, 2024, a weighted average discount rate of 8.8% was used to value Rithm Capital’s investments in Excess MSRs. Excess MSR Joint Ventures As set forth above, Rithm Capital, together with certain Sculptor nonconsolidated funds, formed a new joint venture which acquired the Former Manager’s ownership in the Fortress Excess MSR JV and is consolidated on Rithm Capital’s Consolidated Balance Sheets. As a result, Rithm Capital’s investment in the former Excess MSR JV is now included in Rithm Capital’s direct investments in Excess MSRs. The following table summarizes the activity of Rithm Capital’s investments in Excess MSR equity method investees: Balance at December 31, 2023 $ 62,765 Distributions of earnings from equity method investees (344) Distributions of capital from equity method investees (8,846) Change in fair value of investments in equity method investees 1,617 Equity method investees transferred to direct excess MSR (55,192) Indirect Excess MSR at June 30, 2024 $ — |
SERVICER ADVANCE INVESTMENTS
SERVICER ADVANCE INVESTMENTS | 6 Months Ended |
Jun. 30, 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. As part of the Computershare Acquisition (Note 3), Rithm Capital acquired certain MSRs owned by SLS underlying the Servicer advance investment and therefore, reclassified the Servicer advance investment to MSR and Servicer advance receivable on its Consolidated Balance Sheets. Mr. Cooper performs all of the servicing and advancing functions on the Company’s remaining Servicer advance investments, retains the ancillary income and assumes servicing obligations and liabilities as the servicer of the underlying loans in the portfolio. Rithm Capital owns its interest in Servicer advance investments through a consolidated subsidiary, Advance Purchaser LLC (“Advance Purchaser”), in which it has an ownership interest of 89.3%. As of June 30, 2024, the noncontrolling third-party co-investor and Rithm Capital have funded all 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-investor 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) June 30, 2024 Servicer advance investments $ 336,131 $ 357,220 6.2 % 7.0 % 8.3 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 June 30, 2024 Servicer advance investments (D) $ 13,974,237 $ 302,282 2.2 % $ 262,069 84.7 % 82.5 % 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: June 30, 2024 December 31, 2023 Principal and interest advances $ 52,686 $ 57,909 Escrow advances (taxes and insurance advances) 137,726 149,346 Foreclosure advances 111,870 113,375 Total $ 302,282 $ 320,630 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 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 on Rithm Capital’s 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 June 30, 2024 $ 24,376 $ 5,092 $ 55,731 $ 46,658 $ 131,857 The following table summarizes the acquired identifiable intangible assets: Estimated Useful Lives (Years) June 30, 2024 December 31, 2023 Gross Intangible Assets Management contracts 10 $ 275,000 $ 275,000 Customer relationships 2 to 9 73,949 57,949 Purchased technology 3 to 7 139,964 137,922 Trademarks / Trade names 1 to 5 10,259 10,259 $ 499,172 $ 481,130 Accumulated Amortization (A) Management contracts $ 17,090 $ 3,388 Customer relationships 20,022 17,834 Purchased technology 91,685 67,145 Trademarks / Trade names 5,433 4,843 $ 134,230 $ 93,210 Intangible Assets, Net Management contracts $ 257,910 $ 271,612 Customer relationships 53,927 40,115 Purchased technology (B) 48,279 70,777 Trademarks / Trade names (C) 4,826 5,416 $ 364,942 $ 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 six months ended June 30, 2024. The following table summarizes the expected future amortization expense for acquired intangible assets as of June 30, 2024: Year Ending Amortization Expense July 1 through December 31, 2024 $ 36,216 2025 49,622 2026 40,778 2027 35,834 2028 35,289 2029 and thereafter 143,962 $ 341,701 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 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 June 30, 2024 and 2023 totaled $13.2 million and $10.9 million, respectively, and for the six months ended June 30, 2024 and 2023 totaled $25.7 million and $23.1 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 June 30, 2024, the Company has pledged collateral related to its lease obligations of $7.0 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 July 1 through December 31, 2024 $ 25,523 $ — $ 25,523 2025 41,511 228 41,739 2026 35,451 228 35,679 2027 36,452 228 36,680 2028 26,800 — 26,800 2029 and thereafter 40,189 — 40,189 Total remaining undiscounted lease payments 205,926 684 206,610 Less: imputed interest 31,428 76 31,504 Total remaining discounted lease payments $ 174,498 $ 608 $ 175,106 The future commitments under the non-cancelable leases have not been reduced by the sublease rentals of $20.9 million due in the future periods. Other information related to leases is summarized below: June 30, 2024 December 31, 2023 Weighted average remaining lease term (years) Operating leases 5.3 5.8 Finance leases 3.0 3.5 Weighted average discount rate Operating leases 6.5 % 6.2 % Finance leases 7.9 % 7.9 % Six Months Ended June 30, Supplemental Information 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 17,551 $ 15,752 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 14,846 1 |
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 June 30, 2024 and 2023 totaled $13.2 million and $10.9 million, respectively, and for the six months ended June 30, 2024 and 2023 totaled $25.7 million and $23.1 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 June 30, 2024, the Company has pledged collateral related to its lease obligations of $7.0 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 July 1 through December 31, 2024 $ 25,523 $ — $ 25,523 2025 41,511 228 41,739 2026 35,451 228 35,679 2027 36,452 228 36,680 2028 26,800 — 26,800 2029 and thereafter 40,189 — 40,189 Total remaining undiscounted lease payments 205,926 684 206,610 Less: imputed interest 31,428 76 31,504 Total remaining discounted lease payments $ 174,498 $ 608 $ 175,106 The future commitments under the non-cancelable leases have not been reduced by the sublease rentals of $20.9 million due in the future periods. Other information related to leases is summarized below: June 30, 2024 December 31, 2023 Weighted average remaining lease term (years) Operating leases 5.3 5.8 Finance leases 3.0 3.5 Weighted average discount rate Operating leases 6.5 % 6.2 % Finance leases 7.9 % 7.9 % Six Months Ended June 30, Supplemental Information 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 17,551 $ 15,752 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 14,846 1 |
DERIVATIVES AND HEDGING
DERIVATIVES AND HEDGING | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING | DERIVATIVES AND HEDGING 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 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 US 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 on the Consolidated Balance Sheets based on the value of the underlying US Treasury security as of the reporting date. As of June 30, 2024, the Company meets the netting criteria per ASC 210 and therefore the Company presents the US Treasury payable net of related repurchase agreements as Other assets on the consolidated balance sheets. Gains and losses associated with US Treasury securities are recognized in Realized and unrealized gains (losses), net in the Consolidated Statements of Operations. As of June 30, 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: June 30, 2024 December 31, 2023 (As Restated) Derivative and hedging assets Interest rate swaps (A) $ — $ 106 IRLCs 23,395 26,482 TBAs 19,134 1,492 Treasury short sales (B) 11,828 — $ 54,357 $ 28,080 Derivative and hedging liabilities IRLCs 6,984 2,678 TBAs 11,976 49,087 Other commitments (C) 16,140 — $ 35,100 $ 51,765 (A) Net of $1.1 million and $342.0 million of related variation margin accounts as of June 30, 2024 and December 31, 2023, respectively. (B) Net of $1.5 billion of related reverse repurchase agreements as of June 30, 2024. As of December 31, 2023, treasury securities payable and related reverse repurchase agreements are presented on a gross basis on the Consolidated Balance Sheets. (C) During the first quarter of 2024, 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: June 30, 2024 December 31, 2023 (As Restated) Interest rate swaps (A) $ 3,375,000 $ 7,979,988 IRLCs 4,438,032 2,757,060 Treasury short sales (B) 1,485,000 1,800,000 TBAs, short position (C) 9,763,300 6,013,100 Other commitments 24,364 — (A) Includes $0.7 billion notional of receive Secured Overnight Financing Rate (“SOFR”)/pay fixed of 4.6% and $2.7 billion notional of receive fixed of 4.3%/pay SOFR with weighted average maturities of 29 months and 48 months, respectively, as of June 30, 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 US Treasury Notes sold short. (C) 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 Six Months Ended 2024 2023 2024 2023 Gain on originated residential mortgage loans, HFS, net (A) IRLCs $ (14,817) $ (19,898) $ (7,332) $ 6,342 TBAs 15,484 71,212 53,394 13,229 Interest rate swaps — (684) — (1,931) $ 667 $ 50,630 $ 46,062 $ 17,640 Realized and unrealized gains (losses), net (B) Interest rate swaps 1,429 215,445 30,590 71,820 TBAs (14,424) 507 (12,901) (6,875) Treasury short sales (C) 12,952 — 41,297 — Other commitments 957 — (16,140) — $ 914 $ 215,952 $ 42,846 $ 64,945 Total gain (loss) $ 1,581 $ 266,582 $ 88,908 $ 82,585 (A) Represents unrealized gain (loss). (B) Excludes $10.1 million gain and $11.5 million loss for the three months ended June 30, 2024 and 2023, respectively, and $5.4 million loss and $1.6 million loss for the six months ended June 30, 2024 and 2023, respectively, included within Gain on originated residential mortgage loans, HFS, net (Note 7). (C) Refer to the table below for detail regarding US Treasury short sales: June 30, 2024 Face Sale proceeds Fair value Unrealized gain (loss) position Reverse repurchase agreements (A) Net asset (liability) (B) Short sale liabilities $ 1,485,000 1,490,306 $ 1,483,816 $ 6,491 $ 1,496,956 $ 13,140 (A) Reverse repurchase agreements are lending facilities used to borrow securities to effectuate short sales of US Treasury securities. (B) |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | DEBT OBLIGATIONS The following table summarizes Secured Financing Agreements, Secured Notes and Bonds Payable and also includes debt obligations of consolidated CFEs: June 30, 2024 December 31, 2023 Collateral (As Restated) 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) $ 3,799,496 $ 3,799,496 Jul-24 to Feb-26 6.9 % 0.6 $ 4,244,227 $ 4,296,216 $ 4,238,965 22.8 $ 1,940,038 Warehouse Credit Facilities-Mortgage Loans Receivable (G) 1,411,054 1,411,054 Mar-25 to Dec-25 8.0 % 1.3 1,721,912 1,731,239 1,731,239 1.1 1,337,010 Government and government-backed securities (F) 9,114,181 9,114,181 Jul-24 to Feb-25 5.4 % 0.2 9,559,841 9,361,449 9,496,785 8.6 8,152,469 Non-Agency RMBS (E) 630,000 630,000 Jul-24 to Oct-28 7.4 % 0.6 17,276,385 985,108 1,008,536 7.1 610,189 CLOs (G) 191,655 190,196 Jan-30 to Oct-36 6.4 % 8.8 192,683 N/A 193,560 8.8 183,947 SFR Properties and Commercial (G) 34,972 34,972 Dec-24 8.2 % 0.5 N/A 82,407 82,407 N/A 337,630 Total Secured Financing Agreements 15,181,358 15,179,899 6.1 % 0.5 12,561,283 Secured Notes and Bonds Payable Excess MSRs (E) 161,406 161,406 Oct-25 8.7 % 3.3 56,559,914 221,408 255,389 6.0 181,522 MSRs (H) 5,395,119 5,389,633 Dec-24 to Nov-27 7.5 % 1.4 569,894,934 7,212,153 9,429,829 6.4 4,800,728 Servicer Advance Investments (I) 262,069 262,069 Mar-26 7.3 % 1.7 302,282 336,131 357,220 8.3 278,042 Servicer Advances (I) 2,281,451 2,280,652 Jul-24 to Jun-26 8.1 % 1.5 2,634,706 2,623,070 2,623,070 0.7 2,254,369 Consumer Loans (J) 811,073 786,425 Jun-28 to Sep 37 6.4 % 3.9 1,011,653 984,285 946,367 1.6 1,106,974 SFR Properties (K) 830,582 791,984 Mar-26 to Sep-27 4.1 % 2.8 N/A 940,601 940,601 N/A 789,174 Mortgage Loans Receivable 200,000 200,000 Jul-26 5.8 % 2.0 224,995 224,995 224,995 0.6 200,000 Secured Facility- Asset Management 75,000 70,393 Nov-25 8.8 % 1.3 N/A N/A N/A N/A 69,121 CLOs (G) 13,361 13,329 Jul-30 6.8 % 6.0 15,780 N/A 15,017 6.0 30,258 Total Secured Notes and Bonds Payable 10,030,061 9,955,891 7.3 % 1.8 10,360,188 Notes Payable of Consolidated CFEs (L) Consolidated funds (M) 222,250 221,801 May-37 5.0 % 4.3 202,130 N/A 200,552 N/A 218,157 Residential Mortgage Loans 3,126,741 2,887,692 Mar-64 4.4 % 25.9 3,577,247 N/A 3,347,246 25.9 2,618,082 Mortgage Loans Receivable 454,249 451,682 Mar-39 6.8 % 14.7 479,203 479,203 492,103 1.0 318,998 Total Notes Payable of Consolidated CFEs 3,803,240 3,561,175 4.8 % 23.1 3,155,237 Total / Weighted Average $ 29,014,659 $ 28,696,965 6.3 % 4.0 $ 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 $164.5 million as of June 30, 2024. (D) Includes $11.3 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) All SOFR- or Euro Interbank Offered Rate (EURIBOR) based floating interest rates. (H) Includes $4.5 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 $0.9 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 1.6% 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) Includes (i) SpringCastle debt, which is primarily composed of the following classes of asset-backed notes held by third parties: $172.2 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) $581.1 billion of debt collateralized by the Marcus loans with an interest rate of SOFR plus a margin of 3.0%. (K) Includes $830.6 million of fixed-rate notes with an interest rate ranging from 3.5% to 7.1%. (L) See Note 20 for the balance sheets of consolidated CFEs. (M) 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 20 ). 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 June 30, 2024, Rithm Capital has margin exposure on $15.2 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 Real Estate and Other Securities Residential Mortgage Loans and REO Consumer Loans SFR Properties and Commercial Mortgage Loans Receivable Asset Management Total Balance at December 31, 2023 (As Restated) $ 2,713,933 $ 4,800,728 $ 8,762,658 $ 5,208,120 $ 1,106,974 $ 1,126,804 $ 1,856,008 $ 501,483 $ 26,076,708 Secured Financing Agreements Borrowings — — 40,053,308 26,670,929 — 15,183 1,807,048 17,404 68,563,872 Repayments — — (39,071,785) (24,811,728) — (324,197) (1,733,004) (6,068) (65,946,782) FX remeasurement — — — — — — — (4,987) (4,987) Capitalized deferred financing costs, net of amortization — — — 257 — 6,356 — (100) 6,513 Secured Notes and Bonds Payable Acquired borrowings, net of discount (Note 3) 190,596 — — — — — — — 190,596 Borrowings 1,157,000 1,191,159 — — — — — 5,225 2,353,384 Repayments (1,357,552) (603,815) — (650,000) (323,594) (2,811) — (22,194) (2,959,966) FX remeasurement — — — — — — — (99) (99) Unrealized (gain) loss on notes, fair value — — — — 2,451 — — — 2,451 Capitalized deferred financing costs, net of amortization 150 1,561 — — 594 5,621 — 1,411 9,337 Notes Payable of Consolidated CFEs Borrowings — — — 445,250 — — 454,249 — 899,499 Repayments — — — (169,363) — — (324,062) — (493,425) Discount on borrowings, net of amortization — — — (24,260) — — — — (24,260) Unrealized (gain) loss on notes, fair value — — — 17,983 — — 5,228 3,644 26,855 Capitalized deferred financing costs, net of amortization — — — — — — (2,731) — (2,731) Balance at June 30, 2024 $ 2,704,127 $ 5,389,633 $ 9,744,181 $ 6,687,188 $ 786,425 $ 826,956 $ 2,062,736 $ 495,719 $ 28,696,965 (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 June 30, 2024 are as follows: Year Ending Nonrecourse (A) Recourse (B) Total July 1 through December 31, 2024 $ 842,943 $ 12,869,976 $ 13,712,919 2025 247,781 5,299,929 5,547,710 2026 2,084,833 1,950,470 4,035,303 2027 734,398 440,000 1,174,398 2028 705,783 — 705,783 2029 and thereafter 4,113,546 775,000 4,888,546 $ 8,729,284 $ 21,335,375 $ 30,064,659 (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, $3.9 billion, $0.2 billion, and $3.6 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 $14.1 billion, $6.1 billion, $1.1 billion, and $0.0 billion, respectively. Borrowing Capacity The following table represents borrowing capacity as of June 30, 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 $ 5,282,943 $ 2,342,051 $ 2,940,892 Loan originations 5,627,000 2,903,472 2,723,528 CLOs 314,230 191,655 122,575 Secured Notes and Bonds Payable Excess MSRs 197,016 161,406 35,610 MSRs 5,983,998 5,395,119 588,879 Servicer advances 4,210,000 2,543,520 1,666,480 SFR 296,423 192,606 103,816 Liabilities of Consolidated CFEs Consolidated funds 52,500 — 52,500 $ 21,964,110 $ 13,729,830 $ 8,234,280 (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 June 30, 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 June 30, 2024 , the Company recognized interest expense of $5.3 million . At June 30, 2024 , the unamortized discount and debt issuance cost was approximately $16.2 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 June 30, 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 June 30, 2024 , the Company recognized interest expense of $12.3 million . At June 30, 2024 , the unamortized debt issuance costs was approximately $2.3 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 June 30, 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 June 30, 2024, the estimated undiscounted future payment under the TRA was $256.3 million. The carrying value of the TRA liability measured at amortized cost was $165.6 million as of June 30, 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 June 30, 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 July 1 through December 31, 2024 $ — 2025 29,819 2026 17,374 2027 18,994 2028 15,940 2029 and thereafter 174,203 $ 256,330 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS 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 June 30, 2024 were as follows: Principal Balance or Notional Amount Carrying Value Fair Value Level 1 Level 2 Level 3 Net Asset Value (“NAV”) Total Assets Excess MSRs (A) $ 56,559,914 $ 395,606 $ — $ — $ 395,606 $ — $ 395,606 MSRs and MSR financing receivables (A) 587,043,388 9,693,331 — — 9,693,331 — 9,693,331 Servicer advance investments 302,282 357,220 — — 357,220 — 357,220 Real estate and other securities (B) 19,081,035 10,134,642 24,866 9,300,237 809,539 — 10,134,642 Residential mortgage loans, HFS 83,301 72,894 — — 72,894 — 72,894 Residential mortgage loans, HFS, at fair value 3,807,723 3,837,929 — 3,822,208 15,721 — 3,837,929 Residential mortgage loans, HFI, at fair value 421,507 368,866 — — 368,866 — 368,866 Residential mortgage loans subject to repurchase 1,905,625 1,905,625 — 1,905,625 — — 1,905,625 Consumer loans 1,011,653 946,367 — — 946,367 — 946,367 Derivative and hedging assets 11,640,055 54,357 11,828 19,134 23,395 — 54,357 Mortgage loans receivable 2,049,266 2,049,266 — — 2,049,266 — 2,049,266 Notes receivable 464,240 364,977 — — 364,977 — 364,977 Loans receivable 29,114 29,114 — — 29,114 — 29,114 Cash, cash equivalents and restricted cash 1,535,691 1,535,691 1,561,715 — — — 1,561,715 Assets of consolidated CFEs - funds (D) 318,315 354,013 10,892 — — 343,121 354,013 Assets of consolidated CFEs - loan securitizations (D) 4,056,450 3,878,790 39,352 3,347,335 492,103 — 3,878,790 Other assets N/A 55,586 — — 55,586 — 55,586 $ 36,034,274 $ 1,648,653 $ 18,394,539 $ 15,673,985 $ 343,121 $ 36,060,298 Liabilities Secured financing agreements $ 15,181,358 $ 15,179,899 $ — $ 14,985,142 $ 194,757 $ — $ 15,179,899 Secured notes and bonds payable (C) 10,030,061 9,955,891 — — 10,475,128 — 10,475,128 Unsecured notes, net of issuance costs 1,288,021 1,197,294 — — 1,194,395 — 1,194,395 Residential mortgage loan repurchase liability 1,905,625 1,905,625 — 1,905,625 — — 1,905,625 Derivative liabilities 7,445,641 35,100 — 11,976 23,124 — 35,100 Excess spread financing 16,149,789 116,142 — — 116,142 — 116,142 Notes Receivable Financing 323,452 352,683 — — 352,683 — 352,683 Liabilities of consolidated CFEs - funds (D) 222,250 223,726 1,925 — 221,801 — 223,726 Liabilities of consolidated CFEs - loan securitizations (D) 3,579,739 3,352,107 12,734 2,887,692 451,682 — 3,352,108 $ 32,318,467 $ 14,659 $ 19,790,435 $ 13,029,712 $ — $ 32,834,806 (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) For the purpose of this table, real estate and other securities include government and government-backed securities, non-agency RMBS and CLOs, including US Treasury Bills classified as Level 1 and held at amortized cost basis of $24.9 million (see Note 6). (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 $205.3 million as of June 30, 2024. (D) Represents assets and notes issued of consolidated VIEs accounted for under the CFE election. The following table summarizes the changes in the Company’s Level 3 financial assets for the period presented: Level 3 Excess MSRs (A) MSRs and MSR Financing Receivables (A) Servicer Advance Investments Real Estate and Other Securities Derivatives (B) Residential Mortgage Loans Consumer Loans Notes and Loans Receivable Mortgage Loans Receivable (C) 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 $ 2,232,914 $ 14,331,652 Transfers Transfers from Level 3 — — (7,873) — — (142,046) — — — (149,919) Transfers to Level 3 — — — — — 1,389 — — — 1,389 Computershare Mortgage Acquisition (Note 3) (1,032) 697,494 — — — — — — — 696,462 Gain (loss) included in net income Credit losses on securities (D) — — — (914) — — — — — (914) Servicing revenue, net (E) Included in servicing revenue (E) — 7,251 — — — — — — — 7,251 Change in fair value of Excess MSRs (D) 19,430 — — — — — — — — 19,430 Excess MSRs, equity method investees (D) 1,617 — — — — — — — — 1,617 Servicer advance investments — 6,388 — — — — — — 6,388 Consumer loans — — — — — (51,389) — — (51,389) Residential mortgage loans — — — — 24,641 — — — 24,641 Gain (loss) on settlement of investments, net (656) — — 36 — — — — — (620) Other income (loss), net (D) — — 5,585 (23,472) 4,348 — — 25,552 12,013 Gains (losses) included in OCI (F) — — (3,474) — — — — — (3,474) Interest income 10,522 — 13,254 14,869 — — 15,978 2,211 — 56,834 Purchases, sales and repayments Purchases, net (G) 122,887 — 400,652 80,517 — 246,892 — — — 850,948 Proceeds from sales — 2,404 — — — (61,532) 10,098 — — (49,030) Proceeds from repayments (28,312) $ — (432,082) (91,109) — (32,086) (302,325) (37,670) (1,035,473) (1,959,057) Originations and other 580,244 — — (61) (170,400) — — 1,318,376 1,728,159 Balance at June 30, 2024 $ 395,606 $ 9,693,331 $ 357,220 $ 809,539 $ 271 $ 384,587 $ 946,367 $ 394,091 $ 2,541,369 $ 15,522,381 (A) Includes the recapture agreement for each respective pool, as applicable. (B) For the purpose of this table, the IRLC asset and liability positions and other commitment derivatives are shown net. (C) Includes mortgage loans receivable of consolidated CFEs classified as Level 3 in the fair value hierarchy. (D) Gain (loss) recorded in earnings during the period is attributable to the change in unrealized gain (loss) relating to Level 3 assets still held at the reporting dates and realized gain (loss) recorded during the period. (E) See Note 5 for further details on the components of servicing revenue, net. (F) Gain (loss) included in unrealized gain (loss) on available-for-sale securities, net in the Consolidated Statements of Comprehensive Income. (G) Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection. The following table summarizes the changes in the Company’s Level 3 financial liabilities for the period presented: Level 3 Asset-Backed Securities Issued Notes Payable of CFEs - Consolidated Funds Notes Payable of CFEs - Mortgage Loans Receivable Excess Spread Financing Notes Receivable Financing Total Balance at December 31, 2023 (As Restated) $ 235,770 $ 218,157 $ 318,998 $ — $ — $ 772,925 Transfers Transfers from Level 3 — — — — — — Transfers to Level 3 — — — — 352,683 352,683 Computershare Mortgage Acquisition (Note 3) — — — 125,168 — 125,168 Gains (losses) included in net income — Servicing revenue, net (A) — — — (9,026) — (9,026) Other income (A) 2,451 3,644 5,228 — — 11,323 Purchases, sales and repayments Purchases — — — — — — Proceeds from sales — — 451,128 — — 451,128 Payments (32,935) — (324,062) — — (356,997) Other — — 390 — — 390 Balance at June 30, 2024 $ 205,286 $ 221,801 $ 451,682 $ 116,142 $ 352,683 $ 1,347,594 (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 and Excess Spread Financing Valuation Fair value estimates of Rithm Capital’s MSRs and related Excess Spread Financing 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 June 30, 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 2.4% – 11.5% (6.9%) 0.3% – 15.0% (5.0%) 0.0% – 91.6% (56.4%) 7 – 32 (21) 11 – 28 (19) MSRs, MSR Financing Receivables, Excess Spread Financing Agency 2.5% – 99.4% (5.8%) 0.0% – 100.0% (1.6%) — (G) 2 – 159 (27) 0 – 40 (23) Non-Agency 1.8% – 100.0% (8.7%) 0.0% – 100.0% (24.1%) — (G) 1 – 156 (44) 0 – 58 (22) Ginnie Mae 2.1% – 78.5% (8.8%) 0.0% – 100.0% (7.7%) — (G) 8 – 154 (45) 0 – 42 (27) Total/Weighted Average — MSRs, MSR Financing Receivables, Excess Spread Financing 1.8% – 100.0% (6.9%) 0.0% – 100.0% (5.3%) — (G) 1 – 159 (34) 0 – 58 (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 June 30, 2024, weighted average costs of subservicing of $6.86 – $6.97 ($6.89) per loan per month was used to value the agency MSRs. Weighted average costs of subservicing of $8.54 – $10.72 ($9.42) per loan per month was used to value the non-agency MSRs, including MSR financing receivables. Weighted average cost of subservicing of $8.20 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, MSR financing receivables, and Excess Spread Financing. 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 95 bps. As of June 30, 2024, a weighted average discount rate of 8.8% (range of 8.5% – 9.0%) was used to value Rithm Capital’s Excess MSRs. As of June 30, 2024, a weighted average discount rate of 8.9% (range of 8.7% – 10.3%) was used to value Rithm Capital’s MSRs, MSR financing receivables, and Excess Spread Financing. The following table summarizes the estimated change in fair value of Rithm Capital’s interests in the Agency MSRs, owned as of June 30, 2024, given several parallel shifts in the discount rate, prepayment rate and delinquency rate: Fair value at June 30, 2024 $ 6,079,335 Discount rate shift in % -20% -10% 10% 20% Estimated fair value $ 6,601,506 $ 6,344,320 $ 5,835,324 $ 5,609,934 Change in estimated fair value: Amount $ 522,171 $ 264,985 $ (244,011) $ (469,401) Percentage 8.6 % 4.4 % (4.0) % (7.7) % Prepayment rate shift in % -20% -10% 10% 20% Estimated fair value $ 6,363,422 $ 6,216,274 $ 5,951,290 $ 5,831,466 Change in estimated fair value: Amount $ 284,087 $ 136,939 $ (128,045) $ (247,869) Percentage 4.7 % 2.3 % (2.1) % (4.1) % Delinquency rate shift in % -20% -10% 10% 20% Estimated fair value $ 6,096,639 $ 6,088,185 $ 6,070,197 $ 6,060,853 Change in estimated fair value: Amount $ 17,304 $ 8,850 $ (9,138) $ (18,482) Percentage 0.3 % 0.1 % (0.2) % (0.3) % 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 June 30, 2024, given several parallel shifts in the discount rate, prepayment rate and delinquency rate: Fair value at June 30, 2024 $ 885,053 Discount rate shift in % -20% -10% 10% 20% Estimated fair value $ 978,489 $ 929,530 $ 844,090 $ 806,673 Change in estimated fair value: Amount $ 93,436 $ 44,477 $ (40,963) $ (78,380) Percentage 10.6 % 5.0 % (4.6) % (8.9) % Prepayment rate shift in % -20% -10% 10% 20% Estimated fair value $ 939,289 $ 911,268 $ 860,064 $ 836,525 Change in estimated fair value: Amount $ 54,236 $ 26,215 $ (24,989) $ (48,528) Percentage 6.1 % 3.0 % (2.8) % (5.5) % Delinquency rate shift in % -20% -10% 10% 20% Estimated fair value $ 900,052 $ 892,478 $ 877,898 $ 870,916 Change in estimated fair value: Amount $ 14,999 $ 7,425 $ (7,155) $ (14,137) Percentage 1.7 % 0.8 % (0.8) % (1.6) % The following table summarizes the estimated change in fair value of Rithm Capital’s interests in the Ginnie Mae MSRs, owned as of June 30, 2024, given several parallel shifts in the discount rate, prepayment rate and delinquency rate: Fair value at June 30, 2024 $ 2,728,943 Discount rate shift in % -20% -10% 10% 20% Estimated fair value $ 2,966,767 $ 2,842,986 $ 2,623,622 $ 2,526,134 Change in estimated fair value: Amount $ 237,824 $ 114,043 $ (105,321) $ (202,809) Percentage 8.7 % 4.2 % (3.9) % (7.4) % Prepayment rate shift in % -20% -10% 10% 20% Estimated fair value $ 2,888,042 $ 2,804,727 $ 2,659,509 $ 2,595,473 Change in estimated fair value: Amount $ 159,099 $ 75,784 $ (69,434) $ (133,470) Percentage 5.8 % 2.8 % (2.5) % (4.9) % Delinquency rate shift in % -20% -10% 10% 20% Estimated fair value $ 2,774,102 $ 2,751,475 $ 2,706,569 $ 2,684,392 Change in estimated fair value: Amount $ 45,159 $ 22,532 $ (22,374) $ (44,551) Percentage 1.7 % 0.8 % (0.8) % (1.6) % 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, as of June 30, 2024: 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 2.4% 4.8% 19.8% 19.9 bps 6.2% 21.4 (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 June 30, 2024: Fair Value Asset Type Outstanding Face Amount Amortized Cost Basis Multiple Quotes (A) Single Quote (B) Total Level Government-backed securities (C) $ 9,561,293 $ 9,362,992 $ 9,300,237 $ — $ 9,300,237 2 Non-agency and other securities (D) 9,494,742 779,758 548,047 261,492 809,539 3 Total $ 19,056,035 $ 10,142,750 $ 9,848,284 $ 261,492 $ 10,109,776 (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 government-backed securities 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 64.2% 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 $ 520,083 5.3% – 20.2% (7.6%) 0.0% – 20.0% (6.4%) 0.0% – 2.0% (0.5%) 0.0% – 50.0% (18.6%) (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. (C) Presented within Government and government-backed securities on the Consolidated Balance Sheets. (D) Presented within Other assets on the Consolidated Balance Sheets. 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 June 30, 2024: Performing Loans Fair Value Discount Rate Prepayment Rate CDR Loss Severity Acquired loans $ 13,970 8.2% – 8.6% (8.3%) 3.3% – 5.1% (3.8%) 1.3% – 6.1% (3.0%) 14.7% – 48.0% (40.0%) Non-Performing Loans Fair Value Discount Rate Annual change in home prices CDR Current Value of Underlying Properties Acquired loans $ 1,751 9.3% 18.7% 1.4% 325.0% 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 June 30, 2024: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Residential mortgage loans HFI, at fair value $ 368,866 8.2% – 9.3% (8.5%) 3.0% – 5.1% (4.2%) 1.4% – 6.1% (3.9%) 14.9% – 48.0% (40.8%) 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 June 30, 2024: Fair Value Discount Rate Prepayment Rate CDR Loss Severity SpringCastle $ 244,578 9.2% – 10.2% (9.4%) 9.8% – 36.6% (14.8%) 2.8% – 8.0% (5.2%) 87.0% – 100.0% (93.9%) Marcus 701,789 7.7% 20.8% 12.6% 75.3% Consumer loans, HFI, at fair value $ 946,367 Mortgage Loans Receivable Valuation Rithm Capital classifies certain 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 June 30, 2024: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Acquired mortgage loans receivable $ 49,478 10.6% —% 1.8% – 2.5% (1.9%) 25.0% Originated mortgage loans receivable 1,999,788 9.2% N/A N/A N/A Mortgage loans receivable, at fair value $ 2,049,266 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 June 30, 2024: Fair Value Loan Funding Probability Fair Value of Initial Servicing Rights (Bps) IRLCs, net $ 16,411 0.0% – 100.0% (85.6%) 9.2 – 345.0 (242.9) Asset-Backed Securities Issued As of June 30, 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 June 30, 2024: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Asset-backed securities issued $ 205,286 5.8% 14.8% 5.2% 93.6% Notes Receivable, Notes Receivable Financing, 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 receivable, notes receivable financing, and loans receivable. As of June 30, 2024, the fair value of notes receivable and notes receivable financing 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 receivable, notes receivable financing, 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 significant inputs used in valuing Rithm Capital’s notes and loans receivable as of June 30, 2024: Fair Value Discount Rate Notes receivable $ 364,977 N/A Loans receiv |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES In the normal course of business, Rithm Capital enters into transactions with special purpose entities (“SPEs”), which primarily consist of trusts established for a limited purpose. The SPEs have been formed for the purpose of transactions in which the Company transfers assets into an SPE in return for various forms of debt obligations supported by those assets. In these transactions, the Company typically receives cash and/or other interests in the SPE as proceeds for the transferred assets. The Company retains the right to service the transferred receivables. The Company 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 owns approximately 89.3% of Advance Purchaser as of June 30, 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 14 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 had a co-investment in a portfolio of consumer loans held through certain limited liability entities (the “Consumer Loan Companies”), which hold the SpringCastle loans. 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. On June 28, 2024 Rithm Capital purchased the remaining 46.5% interest in the Consumer Loan Companies from Blackstone for a total purchase price of $22.0 million. As of June 30, 2024, Rithm Capital owns 100% of the interest in the Consumer Loan Companies and consolidates them. 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. Sculptor Loan Financing Partners In the second quarter of 2024, Sculptor launched a CLO equity investment platform to manage investments in the equity tranches of Sculptor managed CLOs in the US and Europe (“Sculptor Loan Financing Partners”). The Company is the primary beneficiary of the Sculptor Loan Financing Partners, 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. Consolidated CFEs: Loan Securitizations - Mortgage Loans Receivable Rithm Capital sponsored 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. As of June 30, 2024, these 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 $479.2 million and an aggregate principal limit of approximately $608.7 million. Refer to Note 19 regarding the fair value measurements of consolidated loan securitizations. Loan Securitizations - Residential Mortgage Loans Rithm Capital sponsors the formation of 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 were 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. As of June 30, 2024, the Notes payable, at fair value of consolidated CFEs due to third parties had a fair value of $2.9 billion. Rithm’s retained interest in the consolidated CFEs was $0.5 billion. Refer to Note 19 regarding the fair value measurements of consolidated loan securitizations. 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 June 30, 2024, the consolidated notes payable due to third parties had a fair value of $221.8 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 June 30, 2024, the consolidated funds have not drawn on the facility. See Note 18 and 19 regarding the financing and fair value measurements of consolidated funds, respectively. The table below presents the carrying value and classification of the assets and liabilities of consolidated VIEs on the Consolidated Balance Sheets: Advance Purchaser Newrez Joint Ventures Residential Mortgage Loans Consumer Loan Companies Sculptor Loan Financing Partners Consolidated CFEs (B) Total Loan Securitizations - Mortgage Loans Receivable Loan Securitizations - Residential Mortgage Loans Consolidated Funds June 30, 2024 Assets Servicer advance investments, at fair value $ 357,220 $ — $ — — $ — $ — $ — $ — $ 357,220 Residential mortgage loans, HFS, at fair value — — 407,036 — — — — — 407,036 Consumer loans — — — — — — — — — Assets of consolidated CFEs - investments — — — — — 492,103 3,347,335 343,121 4,182,559 Cash and cash equivalents 5,825 18,571 — — — — — — 24,396 Restricted cash 7,605 — 5,986 — 5,104 4,074 11,851 10,099 44,719 Other assets 14 1,313 — — 41,660 23,427 — 793 67,207 Total Assets $ 370,664 $ 19,884 $ 413,022 $ — $ 46,764 $ 519,604 $ 3,359,186 $ 354,013 $ 5,083,137 Liabilities Secured financing agreements (A) — — 311,537 — — — — — 311,537 Secured notes and bonds payable (A) 262,069 — — — — — — — 262,069 Notes payable of consolidated CFEs (A) — — — — — 451,682 2,887,692 221,801 3,561,175 Accrued expenses and other liabilities 2,052 2,008 — — 24 548 12,185 1,925 18,742 Total Liabilities $ 264,121 $ 2,008 $ 311,537 $ — $ 24 $ 452,230 $ 2,899,877 $ 223,726 $ 4,153,523 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 — 371 6,263 1,763 20,132 Total Liabilities $ 277,010 $ 2,240 $ 1,002,227 $ 237,277 $ — $ 319,369 $ 2,624,345 $ 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) Reflect 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 carrying value of 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 Other assets on the Consolidated Balance Sheets: June 30, 2024 December 31, 2023 (As Restated) Residential mortgage loan UPB and other collateral $ 7,761,760 $ 8,237,692 Weighted average delinquency (A) 5.3% 5.3% Net credit losses $ 161,752 $ 162,061 Face amount of debt held by third parties $ 7,101,285 $ 7,596,408 Carrying value of bonds retained by Rithm Capital (B)(C) $ 583,607 $ 543,447 Year to date cash flows received by Rithm Capital on these bonds $ 43,576 $ 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 19 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 25. June 30, 2024 December 31, 2023 Net assets of unconsolidated VIEs in which the Company has a variable interest $ 12,486,344 $ 12,782,124 Maximum risk of loss as a result of the Company’s involvement with unconsolidated VIEs: Unearned income and fees 30,284 37,468 Income and fees receivable 14,717 43,250 Investments 546,490 533,026 Unfunded commitments (A) 186,109 207,575 Other commitments 24,364 — Maximum Exposure to Loss $ 801,964 $ 821,319 (A) Includes commitments from certain current and former employees and executive managing directors in the amounts of $111.3 million and $97.5 million as of June 30, 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 25 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: June 30, 2024 December 31, 2023 Carrying value of commercial real estate held within unconsolidated VIEs $ 133,458 $ 66,652 Carrying value of Rithm Capital’s investments in unconsolidated commercial real estate VIEs $ 41,721 $ 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 14), the Newrez Joint Ventures (Note 7), consumer loans (Note 8) and Sculptor investments. Others’ interests in the equity of consolidated subsidiaries is computed as follows: June 30, 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 $ 106,544 10.7 % $ 11,389 $ 104,458 10.7 % $ 11,157 Newrez Joint Ventures $ 17,876 49.5 % $ 8,849 $ 16,607 49.5 % $ 8,220 Consumer Loan Companies (A) $ 54,249 — % $ — $ 72,361 46.5 % $ 33,748 Excess MSRs $ 147,000 20.0 % $ 29,400 $ — — % $ — Asset Management $ 740,265 n/m (B) $ 44,383 $ 673,523 n/m (B) $ 40,971 Others’ interests in the net income (loss) is computed as follows: Three Months Ended June 30, 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 $ (1,149) 10.7 % $ (123) $ 7,927 10.7 % $ 845 Newrez Joint Ventures $ 2,052 49.5 % $ 1,016 $ 781 49.5 % $ 386 Consumer Loan Companies (A) $ (7,318) 46.5 % $ (3,403) $ 12,168 46.5 % $ 5,658 Excess MSRs $ 23,182 20.0 % $ 4,636 $ — 0 — % $ — Asset Management $ 25,964 n/m (B) $ 835 $ — n/m (B) $ — Six Months Ended June 30, 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 $ 8,381 10.7 % $ 895 $ 6,557 10.7 % $ 699 Newrez Joint Ventures $ 2,164 49.5 % $ 1,071 $ 695 49.5 % $ 344 Consumer Loan Companies (A) $ (5,127) 46.5 % $ (2,384) $ 9,776 46.5 % $ 4,546 Excess MSRs $ 23,182 20.0 % $ 4,636 $ — 0 — % $ — Asset Management $ (13) n/m (B) $ 2,195 $ — n/m (B) $ — (A) On June 28, 2024 Rithm Capital purchased the remaining 46.5% interest in the Consumer Loan Companies from Blackstone for a total purchase price of $22.0 million. (B) Percentage in the table above deemed “n/m” are not meaningful. 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. |
EXPENSES, REALIZED AND UNREALIZ
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES), NET AND OTHER | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES), NET AND OTHER | EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES), NET AND OTHER Other Revenues consists of the following: Three Months Ended Six Months Ended 2024 2023 2024 2023 Property and maintenance $ 29,955 $ 33,117 $ 62,335 $ 66,755 Rental 18,920 17,743 37,869 35,866 Other 7,625 8,349 14,644 14,731 Total other revenues $ 56,500 $ 59,209 $ 114,848 $ 117,353 General and Administrative expenses consists of the following: Three Months Ended Six Months Ended 2024 2023 2024 2023 Legal and professional $ 26,941 $ 21,385 $ 48,430 $ 34,140 Loan origination 17,541 12,323 32,976 24,080 Occupancy 16,234 16,382 32,149 34,748 Subservicing 17,690 40,625 37,118 75,881 Loan servicing 3,502 2,930 9,092 6,230 Property and maintenance 30,022 23,935 62,286 47,970 Information technology 47,999 33,140 87,803 68,108 Other 47,194 31,198 94,463 58,240 Total general and administrative expenses $ 207,123 $ 181,918 $ 404,317 $ 349,397 Other Income (Loss) The following table summarizes the components of other income (loss): Three Months Ended Six Months Ended 2024 2023 2024 2023 Real estate and other securities $ (87,979) $ (122,578) $ (190,942) $ (38,727) Residential mortgage loans and REO 22,623 (10,123) 26,149 7,974 Derivative and hedging instruments 17,054 215,952 58,986 64,946 Notes and bonds payable (2,857) 4,549 (2,631) 2,049 Consolidated CFEs (A) 33,384 (17,441) 49,797 (5,197) Other (B) 3,006 6,174 (974) (20,417) Realized and unrealized gains (losses), net $ (14,769) $ 76,533 $ (59,615) $ 10,628 Other income (loss), net 19,042 (47,898) 26,968 (73,064) Total other income (loss) $ 4,273 $ 28,635 $ (32,647) $ (62,436) (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. |
ASSET MANAGEMENT REVENUES
ASSET MANAGEMENT REVENUES | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2024 2024 Management fees $ 59,859 $ 116,989 Incentive income 49,574 63,395 Other asset management income — 4,909 Total asset management revenues $ 109,433 $ 185,293 The following table presents the composition of the Company’s income and fees receivable through Sculptor: June 30, 2024 December 31, 2023 Management fees receivable $ 23,064 $ 23,757 Incentive income receivable 32,040 35,377 Total income and fees receivable $ 55,104 $ 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: June 30, 2024 December 31, 2023 Unearned management fees $ 1 $ 1 Unearned incentive income 30,283 37,467 Total unearned income and fees $ 30,284 $ 37,468 |
EQUITY AND EARNINGS PER SHARE
EQUITY AND EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 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”). During the six months ended June 30, 2024, 6.1 million shares of common stock were issued 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 six months ended June 30, 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 Six Months Ended Series June 30, 2024 December 31, 2023 Liquidation Preference (A) Issuance Discount Carrying Value (B) 2024 2023 2024 2023 Series A, 7.50% issued July 2019 (C) 6,200 6,200 $ 155,002 3.15 % $ 149,822 $ 0.47 $ 0.47 $ 0.94 $ 0.94 Series B, 7.125% issued August 2019 (C) 11,261 11,261 281,518 3.15 % 272,654 0.45 0.45 0.89 0.89 Series C, 6.375% issued February 2020 (C) 15,903 15,903 397,584 3.15 % 385,289 0.40 0.40 0.80 0.80 Series D, 7.00% issued September 2021 (D) 18,600 18,600 465,000 3.15 % 449,489 0.44 0.44 0.88 0.88 Total 51,964 51,964 $ 1,299,104 $ 1,257,254 $ 1.76 $ 1.76 $ 3.51 $ 3.51 (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 June 18, 2024, Rithm Capital’s board of directors declared second quarter 2024 preferred dividends of approximately $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 Series D Cumulative Redeemable Preferred Stock, 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 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 June 18, 2024 July 2024 0.25 122.4 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 June 30, 2024. The last sales price on the New York Stock Exchange for Rithm Capital’s common stock in the quarter ended June 30, 2024 was $10.91 per share: Recipient Date of Grant/ Exercise (A) Number of Unexercised Options Exercisable as of June 30, 2024 Weighted Average Exercise Price (B) Intrinsic Value of Exercisable Options as of June 30, 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 7,050,335 9.38 10.81 Outstanding 21,473,990 21,473,990 (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. There was no activity related to options during the six months ended June 30, 2024. There were 21,473,990 options outstanding as of June 30, 2024 and December 31, 2023. 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 Six Months Ended 2024 2023 2024 2023 Net income (loss) $ 238,517 $ 386,685 $ 526,004 $ 476,634 Noncontrolling interests in income of consolidated subsidiaries 2,961 6,889 6,413 5,589 Dividends on preferred stock 22,395 22,395 44,790 44,790 Net income (loss) attributable to common stockholders $ 213,161 $ 357,401 $ 474,801 $ 426,255 Basic weighted average shares of common stock outstanding 486,721,836 483,091,792 485,029,307 480,642,680 Effect of dilutive securities: (A)(B) Stock options 1,078,804 — 988,302 — Common stock purchase warrants — — — 2,223,336 Restricted stock 120,151 285,169 197,452 247,384 Time-based restricted stock unit awards 1,488,716 — 1,152,513 — Performance-based restricted stock unit awards 1,295,297 — 950,579 — Time vesting Class B Profits Units (A)(B) 134,776 — 67,388 — Performance vesting Class B Profits Units (A)(B) 141,702 — 70,851 — Diluted weighted average shares of common stock outstanding 490,981,282 483,376,961 488,456,392 483,113,400 Basic earnings (loss) per share attributable to common stockholders $ 0.44 $ 0.74 $ 0.98 $ 0.89 Diluted earnings (loss) per share attributable to common stockholders $ 0.43 $ 0.74 $ 0.97 $ 0.88 (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
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense (benefit) consists of the following: Three Months Ended Six Months Ended 2024 2023 2024 2023 Current: Federal $ 1,138 $ — $ 1,750 $ 16 State and local 2,130 99 2,527 122 Foreign 1,928 — 3,704 — Total current income tax expense (benefit) 5,196 99 7,981 138 Deferred: Federal 39,219 48,232 115,672 34,064 State and local 6,698 8,199 19,934 5,522 Foreign 535 — 1,473 — Total deferred income tax expense (benefit) 46,452 56,431 137,079 39,586 Total income tax expense (benefit) $ 51,648 $ 56,530 $ 145,060 $ 39,724 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 June 30, 2024, Rithm Capital recorded a net deferred tax liability of $951.0 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 June 30, 2024, Sculptor recorded a net deferred tax asset of $283.1 million, primarily composed of net operating losses and tax deductible goodwill, which is reported within other assets in the Consolidated Balance Sheets. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation — Rithm Capital is or may become, from time to time, involved in various disputes, litigation and regulatory inquiry and investigation matters that arise in the ordinary course of business. Given the inherent unpredictability of these types of proceedings, it is possible that future adverse outcomes could have a material adverse effect on its business, financial position or results of operations. Rithm Capital is not aware of any unasserted claims that it believes are material and probable of assertion where the risk of loss is expected to be reasonably possible. Rithm Capital is, from time to time, subject to inquiries by government entities. Rithm Capital currently does not believe any of these inquiries would result in a material adverse effect on Rithm Capital’s business. 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, which was approved at a final hearing in May 2024. 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 June 30, 2024, Rithm Capital had outstanding capital commitments related to investments in the following investment types (also refer to Note 5 for MSR investment commitments and to Note 27 for additional capital commitments entered into subsequent to June 30, 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 5 and 14 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 June 30, 2024, Rithm Capital’s estimated liability associated with representations and warranties and Ginnie Mae repurchases was $49.4 million and $1.9 billion, respectively. See Note 5 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 7 for information regarding Rithm Capital’s residential mortgage loans. • Consumer Loans — The Consumer Loan Companies have invested in loans with an aggregate of $162.0 million of unfunded and available revolving credit privileges as of June 30, 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 June 30, 2024, 332 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 — Genesis and Rithm Capital had commitments to fund up to $938.3 million and $1.5 million, respectively, of additional advances on existing mortgage loans as of June 30, 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 $246.0 million to certain funds Sculptor manages, of which $108.3 million relates to commitments of consolidated funds. The remaining $137.7 million relates to commitments of the Company to unconsolidated funds. Approximately $111.3 million of the 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. 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 June 30, 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 18 for a further discussion of the Company’s debt obligations. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS 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 25 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 June 30, 2024, approximately $753.2 million of the Company’s AUM represented investments by Sculptor and Rithm Capital, its current executive managing directors, employees and certain other related parties in Sculptor’s funds. As of June 30, 2024, approximately 55.0% 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 19 and Note 20 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 20 for additional details. Transactions with Great Ajax In connection with the transaction with Great Ajax, on June 11, 2024, RCM Manager, a subsidiary of Rithm Capital, entered into a management agreement to serve as Great Ajax’s external manager and Rithm Capital acquired 2.9 million shares of Great Ajax common stock for a purchase price of $14 million, equal to 6.3% of shares of Great Ajax common stock outstanding as of June 30, 2024, pursuant to the terms of a stock purchase agreement. In addition, during the quarter, Great Ajax issued five-year warrants to Rithm Capital, exercisable for shares of Great Ajax’s common stock. Pursuant to the Great Ajax Management Agreement, RCM Manager implements and manages Great Ajax’s business strategy, investment activities and day-to-day operations subject to oversight by Great Ajax’s Board of Directors. Additionally, the Company’s Chief Executive Officer currently serves as Great Ajax’s Interim Chief Executive Officer and a member of the Board of Directors of Great Ajax. The Company’s Chief Executive Officer does not receive any compensation from Great Ajax for either his role as Interim Chief Executive Officer and member of the Board of Directors. During the first quarter of 2024 (prior to the closing of the transaction with Great Ajax), the Company acquired a pool of performing and non-performing residential mortgage loans with an UPB of $245.3 million from Great Ajax. Further, during the second quarter of 2024, Newrez assumed operational servicing for mortgage loans with an UPB of approximately $562.1 million held directly by Great Ajax, and servicing rights for mortgage loans with an UPB of approximately $2.9 billion in certain securitization trusts sponsored by Great Ajax, which were previously serviced by an affiliate of Great Ajax. For loans held directly by Great Ajax, Newrez is entitled to receive an average servicing fee based on UPB of approximately 0.54% for performing loans and non-performing loans and the greater of (i) the servicing fee applicable to the underlying mortgage loan prior to foreclosure, or (ii) 1.00% annually of the fair market value of the REO as reasonably determined by RCM Manager or 1.00% annually of the purchase price of any REO otherwise purchased by Great Ajax for REO assets. For the servicing of the loans in the securitization trusts sponsored by Great Ajax, Newrez is entitled to receive a servicing fee pursuant to the terms of the servicing agreement with each trust. As of June 30, 2024, the fair value of recognized Mortgage Servicing Rights associated with the loans in securitizations sponsored by Great Ajax was approximately $19.3 million. Other Commitments The Company holds a derivative liability to an affiliate, which is measured at fair value. Refer to Note 17 for additional details. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS These financial statements include a discussion of material events that have occurred subsequent to June 30, 2024 through the issuance of these consolidated financial statements. Events subsequent to that date have not been considered in these financial statements. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 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 24 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. |
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”), MSRs, MSR financing receivables, servicer advance investments, RMBS issued by either public trusts or private label securitization entities (securities issued as such, known as “Non-Agency”) 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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 became effective for the Company’s interim and annual periods beginning January 1, 2024. 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 the Company’s annual period ending December 31, 2024 and interim periods starting in 2025. The Company does not expect the adoption of the new standard to have a material effect on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740) , which focuses on income tax disclosures around effective tax rates and cash income taxes paid. This standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation, including a tabular rate reconciliation for specified categories and additional information for reconciling items that meet a quantitative threshold. The standard also requires a summary of federal, state and local, and foreign income taxes paid, net of refunds received, as well as separate disclosure of payments made to jurisdictions representing 5% or more of total income taxes paid. The new disclosures specified by ASU 2023-09 are required in the Company’s annual financial statements beginning with the year ending December 31, 2025, with early adoption permitted. 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 the Company beginning January 1, 2025, 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. |
BUSINESS ACQUISITIONS (Tables)
BUSINESS ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Schedule of Allocation of Total Consideration Paid to Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the total consideration paid to acquire the assets and assume the liabilities related to Computershare Acquisition during the quarter: ($ in millions) Computershare Total Consideration $ 708.0 Assets Residential mortgage loans, held-for-sale 2.4 Servicer advances receivable 275.8 Mortgage servicing rights, at fair value 696.5 Cash and cash equivalents 102.0 Restricted cash 2.2 Other assets 84.0 Total Assets Acquired $ 1,162.9 Liabilities Accrued expenses and other liabilities 236.1 Secured notes and bonds payable 190.6 Total Liabilities Assumed $ 426.7 Noncontrolling interest $ — Net Assets $ 736.2 Bargain Purchase Gain $ 28.2 |
Schedule of Intangible Assets Acquired | The following table presents the details of identifiable intangible assets acquired: ($ in millions) Estimated Useful Life Amount Customer Relationships 4.5 $ 16.0 Total identifiable intangible assets $ 16.0 The following table summarizes the acquired identifiable intangible assets: Estimated Useful Lives (Years) June 30, 2024 December 31, 2023 Gross Intangible Assets Management contracts 10 $ 275,000 $ 275,000 Customer relationships 2 to 9 73,949 57,949 Purchased technology 3 to 7 139,964 137,922 Trademarks / Trade names 1 to 5 10,259 10,259 $ 499,172 $ 481,130 Accumulated Amortization (A) Management contracts $ 17,090 $ 3,388 Customer relationships 20,022 17,834 Purchased technology 91,685 67,145 Trademarks / Trade names 5,433 4,843 $ 134,230 $ 93,210 Intangible Assets, Net Management contracts $ 257,910 $ 271,612 Customer relationships 53,927 40,115 Purchased technology (B) 48,279 70,777 Trademarks / Trade names (C) 4,826 5,416 $ 364,942 $ 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 Pro Forma Financial Information | The following table presents unaudited pro forma combined revenues and income before income taxes for the three and six months ended June 30, 2024 and 2023 prepared as if the Computershare Acquisition had been consummated on January 1, 2023: Three Months Ended Six Months Ended Pro Forma (in millions) 2024 2023 2024 2023 Revenues $ 1,246.2 $ 1,216.7 $ 2,623.9 $ 2,089.2 Income (loss) before income taxes 294.7 458.7 695.7 501.5 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | 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 June 30, 2024 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 442,016 $ 56,962 $ — $ — $ — $ 498,978 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(165,138)) (127,401) 59,503 — — — (67,898) Servicing revenue, net 314,615 116,465 — — — 431,080 Interest income 178,445 235,662 59,573 4,971 2 478,653 Gain on originated residential mortgage loans, HFS, net 155,771 (2,030) — — — 153,741 Other investment portfolio revenues — 56,500 — — — 56,500 Asset management revenues — — — 109,433 — 109,433 Total revenues 648,831 406,597 59,573 114,404 2 1,229,407 Interest expense and warehouse line fees 152,477 254,331 29,106 8,333 21,697 465,944 General and administrative 91,057 60,704 6,306 31,440 17,616 207,123 Compensation and benefits 184,853 3,478 9,113 51,982 21,022 270,448 Total operating expenses 428,387 318,513 44,525 91,755 60,335 943,515 Realized and unrealized gains (losses), net — (41,975) 18,739 8,467 — (14,769) Other income (loss), net 27,293 (8,810) (2,116) 2,675 — 19,042 Total other income (loss) 27,293 (50,785) 16,623 11,142 — 4,273 Income (loss) before income taxes 247,737 37,299 31,671 33,791 (60,333) 290,165 Income tax expense (benefit) 38,960 2,909 1,952 7,827 — 51,648 Net income (loss) 208,777 34,390 29,719 25,964 (60,333) 238,517 Noncontrolling interests in income (loss) of consolidated subsidiaries 1,016 1,110 — 835 — 2,961 Dividends on preferred stock — — — — 22,395 22,395 Net income (loss) attributable to common stockholders $ 207,761 $ 33,280 $ 29,719 $ 25,129 $ (82,728) $ 213,161 Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Corporate Total Six Months Ended June 30, 2024 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 839,494 $ 129,375 $ — $ — $ — $ 968,869 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(281,977)) (34,040) 50,317 — — — 16,277 Servicing revenue, net 805,454 179,692 — — — 985,146 Interest income 318,466 460,805 124,293 4,971 4 908,539 Gain on originated residential mortgage loans, HFS, net 301,640 (5,441) — — — 296,199 Other investment portfolio revenues — 114,848 — — — 114,848 Asset management revenues (A) — — — 185,293 — 185,293 Total revenues 1,425,560 749,904 124,293 190,264 4 2,490,025 Interest expense and warehouse line fees 283,651 482,405 61,520 15,954 32,241 875,771 General and administrative 174,621 127,701 11,060 63,375 27,560 404,317 Compensation and benefits 338,659 8,221 20,416 115,094 23,836 506,226 Total operating expenses 796,931 618,327 92,996 194,423 83,637 1,786,314 Realized and unrealized gains (losses), net — (104,545) 43,305 1,625 — (59,615) Other income (loss), net 27,257 (5,128) (1,842) 6,644 37 26,968 Total other income (loss) 27,257 (109,673) 41,463 8,269 37 (32,647) Income (loss) before income taxes 655,886 21,904 72,760 4,110 (83,596) 671,064 Income tax expense (benefit) 135,161 4,157 1,619 4,123 — 145,060 Net income (loss) 520,725 17,747 71,141 (13) (83,596) 526,004 Noncontrolling interests in income (loss) of consolidated subsidiaries 1,071 3,147 — 2,195 — 6,413 Dividends on preferred stock — — — — 44,790 44,790 Net income (loss) attributable to common stockholders $ 519,654 $ 14,600 $ 71,141 $ (2,208) $ (128,386) $ 474,801 (A) Includes $4.9 million of asset management related interest income (Note 22). Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Corporate Total June 30, 2024 Investments $ 11,635,825 $ 13,633,989 $ 2,049,266 $ — $ — $ 27,319,080 Cash and cash equivalents 614,849 466,450 48,894 105,895 2,648 1,238,736 Restricted cash 153,526 94,085 36,020 13,324 — 296,955 Other assets 3,835,566 3,714,972 107,794 1,117,622 23,504 8,799,458 Goodwill 24,376 5,092 55,731 46,658 — 131,857 Assets of consolidated CFEs — 3,359,187 519,604 354,012 — 4,232,803 Total assets $ 16,264,142 $ 21,273,775 $ 2,817,309 $ 1,637,511 $ 26,152 $ 42,018,889 Debt $ 8,586,918 $ 14,663,902 $ 1,611,055 $ 439,520 $ 1,031,690 $ 26,333,085 Other liabilities 3,669,928 551,537 21,963 234,000 211,929 4,689,357 Liabilities of consolidated CFEs — 2,899,877 452,230 223,726 — 3,575,833 Total liabilities 12,256,846 18,115,316 2,085,248 897,246 1,243,619 34,598,275 Total equity 4,007,296 3,158,459 732,061 740,265 (1,217,467) 7,420,614 Noncontrolling interests in equity of consolidated subsidiaries 8,849 40,789 — 44,383 — 94,021 Total Rithm Capital stockholders’ equity $ 3,998,447 $ 3,117,670 $ 732,061 $ 695,882 $ (1,217,467) $ 7,326,593 Investments in equity method investees $ 23,436 $ 66,248 $ — $ 113,355 $ — $ 203,039 December 31, 2023 (As Restated) Total Assets $ 13,671,626 $ 21,824,007 $ 2,498,132 $ 1,694,954 $ 28,365 $ 39,717,084 Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Corporate Total Three Months Ended June 30, 2023 (As Restated) Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 359,854 $ 105,493 $ — $ — $ — $ 465,347 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(139,410)) 45,767 (23,735) — — — 22,032 Servicing revenue, net 405,621 81,758 — — — 487,379 Interest income 129,239 206,340 49,588 — — 385,167 Gain on originated residential mortgage loans, HFS, net 144,318 34,266 — — — 178,584 Other investment portfolio revenues — 59,209 — — — 59,209 Asset management revenues — — — — — — Total revenues 679,178 381,573 49,588 — — 1,110,339 Interest expense and warehouse line fees 110,219 181,085 24,359 — 8,572 324,235 General and administrative 75,538 85,624 4,440 — 16,316 181,918 Compensation and benefits 161,600 7,963 10,355 — 9,688 189,606 Total operating expenses 347,357 274,672 39,154 — 34,576 695,759 Realized and unrealized gains (losses), net 274 58,633 17,626 — — 76,533 Other income (loss), net (5,179) (31,211) (822) — (10,686) (47,898) Total other income (loss) (4,905) 27,422 16,804 — (10,686) 28,635 Income (loss) before income taxes 326,916 134,323 27,238 (45,262) 443,215 Income tax expense (benefit) 49,207 8,304 (981) — — 56,530 Net income (loss) 277,709 126,019 28,219 — (45,262) 386,685 Noncontrolling interests in income (loss) of consolidated subsidiaries 386 6,503 — — — 6,889 Dividends on preferred stock — — — — 22,395 22,395 Net income (loss) attributable to common stockholders $ 277,323 $ 119,516 $ 28,219 $ — $ (67,657) $ 357,401 Origination and Servicing Investment Portfolio Mortgage Loans Receivable Asset Management Corporate Total Six Months Ended June 30, 2023 (As Restated) Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 709,278 $ 225,726 $ — $ — $ — $ 935,004 Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(245,101)) 8,241 (128,513) — — — (120,272) Servicing revenue, net 717,519 97,213 — — — 814,732 Interest income 239,005 376,926 99,259 — — 715,190 Gain on originated residential mortgage loans, HFS, net 252,539 35,313 — — — 287,852 Other investment portfolio revenues — 117,353 — — — 117,353 Asset management revenues — — — — — — Total revenues 1,209,063 626,805 99,259 — — 1,935,127 Interest expense and warehouse line fees 221,288 338,995 50,198 — 17,969 628,450 General and administrative 156,370 160,317 8,569 — 24,141 349,397 Compensation and benefits 322,114 15,099 22,457 — 18,816 378,486 Total operating expenses 699,772 514,411 81,224 — 60,926 1,356,333 Realized and unrealized gains (losses), net 251 (6,250) 16,627 — — 10,628 Other income (loss), net (18,606) (36,481) 891 — (18,868) (73,064) Total other income (loss) (18,355) (42,731) 17,518 — (18,868) (62,436) Income (loss) before income taxes 490,936 69,663 35,553 — (79,794) 516,358 Income tax expense (benefit) 45,535 (2,736) (3,075) — — 39,724 Net income (loss) 445,401 72,399 38,628 — (79,794) 476,634 Noncontrolling interests in income (loss) of consolidated subsidiaries 344 5,245 — — — 5,589 Dividends on preferred stock — — — — 44,790 44,790 Net income (loss) attributable to common stockholders $ 445,057 $ 67,154 $ 38,628 $ — $ (124,584) 426,255 |
MORTGAGE SERVICING RIGHTS AND_2
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Schedule of Activity Reated to MSRs and MSR Financing Receivables and by Type | The following table summarizes activity related to MSRs and MSR financing receivables: Balance as of December 31, 2023 $ 8,405,938 Purchases, net — Transfers — Acquisition 697,494 Originations (A) 580,244 Sales 2,404 Change in fair value due to: Realization of cash flows (B) (284,189) Change in valuation inputs and assumptions 291,440 Balance as of June 30, 2024 $ 9,693,331 (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 June 30, 2024: UPB of Underlying Mortgages Weighted Average Life (Years) (A) Carrying Value (B) Agency $ 381,516,738 6.6 $ 6,079,335 Non-Agency 72,106,898 5.4 885,053 Ginnie Mae (C) 133,419,752 6.3 2,728,943 Total/Weighted Average $ 587,043,388 6.4 $ 9,693,331 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Represents fair value. As of June 30, 2024, weighted average discount rates of 8.9% (range of 8.7% – 10.3%) were used to value Rithm Capital’s MSRs and MSR financing receivables. (C) As of June 30, 2024, Rithm Capital holds approximately $1.9 billion in residential mortgage loans subject to repurchase and the related residential mortgage loans repurchase liability on its Consolidated Balance Sheets. The following table presents activity related to the carrying value of investments in Excess MSRs: Total (A) Balance as of December 31, 2023 $ 208,385 Purchases 122,887 Interest income 10,522 Other income (656) Proceeds from repayments (19,122) Proceeds from sales — Change in fair value 19,430 Acquisition of assets from Fortress Excess MSR JV 55,192 Reclassification of SLS serviced Excess MSRs to Full MSRs (1,032) Balance as of June 30, 2024 $ 395,606 (A) |
Schedule of Components of Servicing Revenue, Net | The following table summarizes components of servicing revenue, net: Three Months Ended Six Months Ended 2024 2023 2024 2023 Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 453,989 $ 432,750 $ 884,103 $ 871,800 Ancillary and other fees 44,989 32,597 84,766 63,204 Servicing fee revenue, net and fees 498,978 465,347 968,869 935,004 Change in fair value due to: Realization of cash flows (A) (165,138) (139,410) (281,977) (245,101) Change in valuation inputs and assumptions, net of realized gains (losses) (B) 97,240 161,442 298,254 124,829 Servicing revenue, net $ 431,080 $ 487,379 $ 985,146 $ 814,732 (A) Net of $2.2 million of realization of cash flows related to excess spread financing (Note 12). (B) Net of $6.8 million of change in valuation inputs and assumptions related to excess spread financing (Note 12). |
Schedule of 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 June 30, 2024 December 31, 2023 California 16.7 % 17.1 % Florida 8.4 % 8.6 % Texas 6.5 % 6.2 % New York 5.8 % 6.0 % Washington 5.3 % 5.8 % New Jersey 4.1 % 4.3 % Virginia 3.6 % 3.6 % Maryland 3.4 % 3.4 % Illinois 3.3 % 3.3 % Georgia 3.1 % 3.0 % Other US 39.8 % 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: June 30, 2024 December 31, 2023 Principal and interest advances $ 624,563 $ 616,801 Escrow advances (taxes and insurance advances) 1,358,320 1,442,697 Foreclosure advances 891,268 767,171 Gross advance balance (A)(B) 2,874,151 2,826,669 Reserves, impairment, unamortized discount, net of recovery accruals (99,641) (66,419) Total servicer advances receivable $ 2,774,510 $ 2,760,250 (A) Includes $550.8 million and $585.0 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B) Amortized Cost Basis Carrying Value (A) Weighted Average Discount Rate Weighted Average Yield Weighted Average Life (Years) (B) June 30, 2024 Servicer advance investments $ 336,131 $ 357,220 6.2 % 7.0 % 8.3 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 June 30, 2024 Servicer advance investments (D) $ 13,974,237 $ 302,282 2.2 % $ 262,069 84.7 % 82.5 % 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: June 30, 2024 December 31, 2023 Principal and interest advances $ 52,686 $ 57,909 Escrow advances (taxes and insurance advances) 137,726 149,346 Foreclosure advances 111,870 113,375 Total $ 302,282 $ 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 20,652 Write-offs (14,793) Balance at June 30, 2024 $ 99,540 |
GOVERNMENT AND GOVERNMENT-BAC_2
GOVERNMENT AND GOVERNMENT-BACKED SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Agency and Treasury Securities by Designation and Purchases and Sales of Agency and Treasury Securities | The following tables summarize Agency and Treasury securities by designation: June 30, 2024 December 31, 2023 Gross Unrealized Weighted Average (As Restated) Outstanding Face Amount Gains Losses Carrying Value (A) Number of Securities Coupon Yield Life (Years) (B) Carrying Value (A) Securities designated as available for sale (“AFS”): Agency (C) $ 71,981 $ — $ — $ 62,998 1 3.5 % 3.5 % 10.7 $ 65,496 Securities measured at fair value through net income: Agency (C) 9,489,312 3,291 (66,040) 9,237,239 46 5.1 % 5.2 % 8.7 8,467,634 Total/Weighted Average $ 9,561,293 $ 3,291 $ (66,040) $ 9,300,237 47 5.6 % 8.0 % 8.6 $ 8,533,130 (A) Fair value is equal to the carrying value for all securities. See Note 19 regarding the fair value measurements. (B) Based on the timing of expected principal reduction on the assets. (C) All fixed-rate as of June 30, 2024. The following table summarizes purchases and sales of Agency and Treasury securities: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Treasury (A) Agency Treasury (A) Agency Treasury (A) Agency Treasury Agency Purchases Face $ 25.0 $ — $ 1,000.0 $ — $ 4,825.0 $ 1,287.0 $ 1,000.0 $ 2,162.4 Purchase price 24.7 — 973.8 — 4,798.6 1,255.9 973.8 2,154.4 Sales Face $ 3,000.0 $ — $ — $ — $ 3,000.0 $ — $ — $ 1,462.4 Amortized cost 2,976.3 — — — 2,976.3 — — 1,442.8 Sale price 2,957.5 — — — 2,957.5 — — 1,395.9 Realized gain (loss) (18.8) — — — (18.8) — — (46.9) (A) |
Schedule of Agency and Treasury Securities, Held to Maturity | June 30, 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 $ 24,860 $ 24,861 $ 1 2 5.4 % 0.1 $ 24,553 |
RESIDENTIAL MORTGAGE LOANS (Tab
RESIDENTIAL MORTGAGE LOANS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Residential Mortgage Loans Outstanding by Loan Type | The following table summarizes residential mortgage loans outstanding by loan type: June 30, 2024 December 31, 2023 (As Restated) Outstanding Face Amount Carrying Loan Weighted Average Yield Weighted Average Life (Years) (A) Carrying Value Investments of consolidated CFEs (B) $ 3,577,247 $ 3,347,246 10,411 5.5 % 25.9 $ 3,038,587 Residential mortgage loans, HFI, at fair value $ 421,507 $ 368,866 7,823 8.5 % 5.2 $ 379,044 Residential mortgage loans, HFS Acquired performing loans (C) 61,427 53,951 1,790 8.0 % 5.5 57,038 Acquired non-performing loans (D) 21,874 18,943 247 6.1 % 3.9 21,839 Total residential mortgage loans, HFS $ 83,301 $ 72,894 2,037 7.5 % 5.1 $ 78,877 Residential mortgage loans, HFS, at fair value Acquired performing loans (C)(E) 850,561 834,383 3,041 5.8 % 11.2 400,603 Acquired non-performing loans (D)(E) 233,580 214,071 1,130 3.7 % 23.0 204,950 Originated loans 2,723,582 2,789,475 9,872 7.2 % 29.2 1,856,312 Total residential mortgage loans, HFS, at fair value $ 3,807,723 $ 3,837,929 14,043 6.7 % 24.8 $ 2,461,865 (A) For loans classified as Level 3 in the fair value hierarchy, the weighted average life is based on the expected timing of the receipt of cash flows. For Level 2 loans, the weighted average life is based on the contractual term of the loan. (B) Residential mortgage loans 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. (C) Performing loans are generally placed on non-accrual status when principal or interest is 90 days or more past due. (D) As of June 30, 2024, Rithm Capital has placed non-performing loans, HFS on non-accrual status, except as described in (E) below. (E) Includes $217.2 million and $192.6 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. The following table summarizes Mortgage loans receivable, at fair value and mortgage loans receivable held by consolidated CFEs by loan type as of June 30, 2024: 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 $ 886,359 $ 211,184 $ 1,097,543 43.3 % 396 28.3 % 11.2 % 18.3 72.8% / 62.3% Bridge 898,306 220,071 1,118,377 43.8 % 575 41.2 % 10.1 % 24.6 67.7% Renovation 264,601 60,848 325,449 12.9 % 426 30.5 % 10.5 % 12.5 81.7%/ 67.4% $ 2,049,266 $ 492,103 $ 2,541,369 100.0 % 1,397 100.0 % 10.6 % 20.4 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. See Note 19 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 loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets: Balance at December 31, 2023 (As Restated) $ 1,879,319 Initial loan advances 931,574 Construction holdbacks and draws 392,874 Paydowns and payoffs (798,720) Fair value adjustments 17,418 Purchased loans discount amortization 871 Transfer of loans to REO (4,311) Transfers from (to) assets of consolidated CFEs (369,759) Balance at June 30, 2024 $ 2,049,266 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 — 2,211 2,211 Proceeds from repayments (33,250) (4,420) (37,670) Balance at June 30, 2024 $ 364,977 $ 29,114 $ 394,091 |
Schedule of Geographic Distribution of the Residential Mortgage Loans | 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 June 30, 2024 December 31, 2023 California 11.2 % 8.3 % Florida 9.2 % 9.3 % Texas 8.6 % 9.5 % New York 5.8 % 8.0 % Georgia 4.3 % 4.9 % New Jersey 3.7 % 3.9 % Maryland 3.4 % 3.3 % Illinois 3.3 % 3.5 % North Carolina 3.3 % 3.2 % Virginia 3.1 % 3.6 % Other US 44.1 % 42.5 % 100.0 % 100.0 % |
Schedule of Difference Between Aggregate UPB and Aggregate Carrying Value of 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: June 30, 2024 December 31, 2023 Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB 90+ $ 340,323 $ 304,967 $ (35,356) $ 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: June 30, 2024 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 $ 1,991,233 $ 2,009,083 $ 17,850 $ 1,838,935 $ 1,837,513 $ (1,422) 90+ 45,996 40,183 $ (5,813) 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: June 30, 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 $ 493,354 $ 394,091 $ (99,263) $ 565,786 $ 429,550 $ (136,236) 90+ — — $ — — — $ — (A) Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements. |
Schedule of Activity for Residential Mortgage Loans | 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 — — 25,518,069 25,518,069 Sales — — (24,568,303) (24,568,303) Purchases/additional fundings — — 922,076 922,076 Proceeds from repayments (23,313) (5,518) (42,440) (71,271) Transfer of loans (to) from other assets (A) — (2,479) (463,263) (465,742) Transfer of loans to REO (1,943) (1,325) (2,422) (5,690) Transfers of loans to held-for-sale (52) — — (52) Transfer of loans from held-for-investment — — 52 52 Impairment (loss) reversal — 3,339 — 3,339 Fair value adjustments due to: Changes in instrument-specific credit risk 13,632 — 10,466 24,098 Other factors 1,498 — 1,829 3,327 Balance at June 30, 2024 $ 368,866 $ 72,894 $ 3,837,929 $ 4,279,689 (A) Includes loans transferred to consolidated CFEs and receivable modifications resulting in transfers between other assets and residential mortgage loans. |
Schedule of 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 Six Months Ended 2024 2023 2024 2023 Interest income: Loans HFI, at fair value $ 7,579 $ 9,214 $ 15,436 $ 18,723 Loans HFS, at lower of cost or fair value 1,279 1,884 2,140 3,388 Loans HFS, at fair value 45,644 41,745 81,660 79,031 Total interest income $ 54,502 $ 52,843 $ 99,236 $ 101,142 Interest expense: Loans HFI, at fair value 4,032 4,849 8,256 9,519 Loans HFS, at lower of cost or fair value 1,007 982 1,723 1,889 Loans HFS, at fair value 52,328 42,787 89,566 85,503 Total interest expense $ 57,367 $ 48,618 $ 99,545 $ 96,911 Net interest income $ (2,865) $ 4,225 $ (309) $ 4,231 |
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 Six Months Ended 2024 2023 2024 2023 Gain (loss) on residential mortgage loans originated and sold, net (A) $ (217,515) $ (93,059) $ (341,629) $ (127,373) Gain (loss) on settlement of residential mortgage loan origination derivative instruments (B) 10,077 (11,483) (5,447) (1,579) MSRs retained on transfer of residential mortgage loans (C) 364,305 202,303 580,244 342,816 Other (D) 5,114 2,302 11,608 (3,141) Realized gain on sale of originated residential mortgage loans, net $ 161,981 $ 100,063 $ 244,776 $ 210,723 Change in fair value of residential mortgage loans (8,907) 27,891 5,361 59,489 Change in fair value of interest rate lock commitments (Note 17) (14,817) (19,898) (7,332) 6,342 Change in fair value of derivative instruments (Note 17) 15,484 70,528 53,394 11,298 Gain on originated residential mortgage loans, HFS, net $ 153,741 $ 178,584 $ 296,199 $ 287,852 (A) Includes residential mortgage loan origination fees of $233.8 million and $94.0 million for the three months ended June 30, 2024 and 2023, respectively. Includes residential mortgage loan origination fees of $411.5 million and $162.9 million for the six months ended June 30, 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) | 6 Months Ended |
Jun. 30, 2024 | |
Investments In Consumer Loans Equity Method Investees [Abstract] | |
Schedule of Consumer Loan Portfolio Measured at Fair Value | 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) June 30, 2024 SpringCastle $ 231,945 $ 244,578 18.2 % 3.8 Marcus 779,708 701,789 10.9 % 0.9 Total consumer loans $ 1,011,653 $ 946,367 12.5 % 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: June 30, 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 $ 227,741 $ 240,197 $ 12,456 $ 255,441 $ 280,577 $ 25,136 90+ 4,204 4,381 177 4,661 5,055 394 Total SpringCastle $ 231,945 $ 244,578 $ 12,633 $ 260,102 $ 285,632 $ 25,530 Marcus Current $ 690,063 $ 621,103 $ (68,960) $ 1,014,404 $ 956,076 $ (58,328) 90+ 89,645 80,686 (8,959) 34,268 32,297 (1,971) Total Marcus $ 779,708 $ 701,789 $ (77,919) $ 1,048,672 $ 988,373 $ (60,299) $ 1,011,653 $ 946,367 $ (65,286) $ 1,308,774 $ 1,274,005 $ (34,769) (A) Consumer loans are carried at fair value under the fair value option election. See Note 19 regarding fair value measurements. |
Schedule of Activity for 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) 10,098 Proceeds from repayments (302,325) Accretion of loan discount and premium amortization, net 15,978 Fair value adjustments due to: Changes in instrument-specific credit risk (31,634) Other factors (19,755) Balance at June 30, 2024 $ 946,367 (A) Represents draws on consumer loans with revolving privileges. |
SINGLE-FAMILY RENTAL PROPERTI_2
SINGLE-FAMILY RENTAL PROPERTIES (Tables) | 6 Months Ended |
Jun. 30, 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: June 30, 2024 December 31, 2023 Land $ 189,694 $ 183,359 Building 758,777 733,437 Capital improvements 145,465 138,869 Total gross investment in SFR properties 1,093,936 1,055,665 Accumulated depreciation (68,612) (53,737) Investment in SFR properties, net $ 1,025,324 $ 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 41,955 — 41,955 Transfers to HFS (3,270) 3,270 — Dispositions (1,140) (2,372) (3,512) Accumulated depreciation (14,895) (152) (15,047) Balance at June 30, 2024 $ 1,023,007 $ 2,317 $ 1,025,324 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 132 — 132 Transfer to HFS (10) 10 — Disposition of SFR units (4) (8) (12) Balance at June 30, 2024 4,000 8 4,008 |
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 $ 32,296 2025 and thereafter 20,171 Total $ 52,467 |
MORTGAGE LOANS RECEIVABLE (Tabl
MORTGAGE LOANS RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Mortgage Loans Receivable Held by Loan Type and Activity for Mortgage Loans Receivable | The following table summarizes residential mortgage loans outstanding by loan type: June 30, 2024 December 31, 2023 (As Restated) Outstanding Face Amount Carrying Loan Weighted Average Yield Weighted Average Life (Years) (A) Carrying Value Investments of consolidated CFEs (B) $ 3,577,247 $ 3,347,246 10,411 5.5 % 25.9 $ 3,038,587 Residential mortgage loans, HFI, at fair value $ 421,507 $ 368,866 7,823 8.5 % 5.2 $ 379,044 Residential mortgage loans, HFS Acquired performing loans (C) 61,427 53,951 1,790 8.0 % 5.5 57,038 Acquired non-performing loans (D) 21,874 18,943 247 6.1 % 3.9 21,839 Total residential mortgage loans, HFS $ 83,301 $ 72,894 2,037 7.5 % 5.1 $ 78,877 Residential mortgage loans, HFS, at fair value Acquired performing loans (C)(E) 850,561 834,383 3,041 5.8 % 11.2 400,603 Acquired non-performing loans (D)(E) 233,580 214,071 1,130 3.7 % 23.0 204,950 Originated loans 2,723,582 2,789,475 9,872 7.2 % 29.2 1,856,312 Total residential mortgage loans, HFS, at fair value $ 3,807,723 $ 3,837,929 14,043 6.7 % 24.8 $ 2,461,865 (A) For loans classified as Level 3 in the fair value hierarchy, the weighted average life is based on the expected timing of the receipt of cash flows. For Level 2 loans, the weighted average life is based on the contractual term of the loan. (B) Residential mortgage loans 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. (C) Performing loans are generally placed on non-accrual status when principal or interest is 90 days or more past due. (D) As of June 30, 2024, Rithm Capital has placed non-performing loans, HFS on non-accrual status, except as described in (E) below. (E) Includes $217.2 million and $192.6 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. The following table summarizes Mortgage loans receivable, at fair value and mortgage loans receivable held by consolidated CFEs by loan type as of June 30, 2024: 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 $ 886,359 $ 211,184 $ 1,097,543 43.3 % 396 28.3 % 11.2 % 18.3 72.8% / 62.3% Bridge 898,306 220,071 1,118,377 43.8 % 575 41.2 % 10.1 % 24.6 67.7% Renovation 264,601 60,848 325,449 12.9 % 426 30.5 % 10.5 % 12.5 81.7%/ 67.4% $ 2,049,266 $ 492,103 $ 2,541,369 100.0 % 1,397 100.0 % 10.6 % 20.4 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. See Note 19 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 loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets: Balance at December 31, 2023 (As Restated) $ 1,879,319 Initial loan advances 931,574 Construction holdbacks and draws 392,874 Paydowns and payoffs (798,720) Fair value adjustments 17,418 Purchased loans discount amortization 871 Transfer of loans to REO (4,311) Transfers from (to) assets of consolidated CFEs (369,759) Balance at June 30, 2024 $ 2,049,266 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 — 2,211 2,211 Proceeds from repayments (33,250) (4,420) (37,670) Balance at June 30, 2024 $ 364,977 $ 29,114 $ 394,091 |
Schedule of Difference Between Aggregate UPB and Aggregate Carrying Value of 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: June 30, 2024 December 31, 2023 Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB 90+ $ 340,323 $ 304,967 $ (35,356) $ 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: June 30, 2024 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 $ 1,991,233 $ 2,009,083 $ 17,850 $ 1,838,935 $ 1,837,513 $ (1,422) 90+ 45,996 40,183 $ (5,813) 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: June 30, 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 $ 493,354 $ 394,091 $ (99,263) $ 565,786 $ 429,550 $ (136,236) 90+ — — $ — — — $ — (A) Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements. |
Schedule of Geographic Distribution of the Underlying Mortgage Loans Receivable | The following table summarizes the geographic distribution of loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets as of June 30, 2024: Percentage of Total State Concentration June 30, 2024 December 31, 2023 (As Restated) California 45.6 % 47.8 % Florida 8.8 % 7.8 % Georgia 8.0 % 2.5 % Washington 6.4 % 7.9 % New York 5.7 % 6.7 % Colorado 3.9 % 3.1 % Arizona 3.8 % 4.8 % Virginia 3.6 % 4.1 % South Carolina 2.2 % 0.6 % Texas 2.0 % 2.7 % Other US 10.0 % 12.0 % 100.0 % 100.0 % |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Reconciliation of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on Rithm Capital’s Consolidated Balance Sheets to the total of the same amounts shown in the Consolidated Statements of Cash Flows: June 30, 2024 December 31, 2023 (As Restated) Cash and cash equivalents $ 1,238,736 $ 1,287,199 Restricted cash 296,955 378,048 Restricted cash of consolidated CFEs (A) 26,024 31,848 Total cash, cash equivalents and restricted cash $ 1,561,715 $ 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: June 30, 2024 December 31, 2023 (As Restated) Cash and cash equivalents $ 1,238,736 $ 1,287,199 Restricted cash 296,955 378,048 Restricted cash of consolidated CFEs (A) 26,024 31,848 Total cash, cash equivalents and restricted cash $ 1,561,715 $ 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: June 30, 2024 December 31, 2023 (As Restated) Investment Portfolio (A) $ 105,936 $ 150,432 Origination and Servicing 153,526 195,490 Mortgage Loans Receivable (A) 40,094 37,805 Asset Management (A) 23,423 26,169 Total restricted cash $ 322,979 $ 409,896 (A) Included restricted cash related to consolidated CFEs presented within Investments, at fair value and other assets on the Consolidated Balance Sheets. |
OTHER ASSETS AND LIABILITIES (T
OTHER ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2024 December 31, 2023 (As Restated) June 30, 2024 December 31, 2023 (As Restated) CLOs, at fair value (A) 261,492 226,486 Accounts payable $ 201,544 $ 165,144 Deferred tax asset 283,071 279,019 Accrued compensation and benefits 159,470 290,464 Derivative and hedging assets (Note 17) 54,357 28,080 Deferred tax liability 950,986 801,857 Due from related parties 38,346 32,319 Derivative liabilities (Note 17) 35,100 51,765 Equity investments (B) 244,222 173,882 Escheat payable 197,816 169,914 Excess MSRs, at fair value (Note 13) 395,606 271,150 Excess spread financing 116,142 — Goodwill (Note 15) (C) 131,857 131,857 Interest payable 186,695 166,620 Income and fees receivable 55,378 59,134 Lease liability (Note 16) 175,106 159,236 Intangible assets (Note 15) 364,942 387,920 Notes Receivable Financing (G) 352,683 — Loans receivable, at fair value (D) 29,114 31,323 Unearned income and fees 30,284 37,468 Margin receivable, net (E) 205,207 75,947 Other liabilities 238,902 223,293 Non-Agency RMBS, at fair value (A) 548,047 577,543 $ 2,644,728 $ 2,065,761 Notes receivable, at fair value (F) 364,977 398,227 Operating lease right-of-use assets (Note 16) 104,983 104,207 Other receivables 159,726 152,046 Prepaid expenses 68,724 62,513 Principal and interest receivable 154,945 168,516 Property and equipment 37,428 40,038 REO 27,163 15,507 Servicer advance investments, at fair value (Note 14) 357,220 376,881 Servicing fee receivables 162,888 156,777 Warrants, at fair value 11,564 16,599 Other assets 189,929 182,881 $ 4,251,186 $ 3,948,852 (A) Non-Agency RMBS and CLOs were reclassified from Real estate and other securities, as presented in prior periods, to Other assets on the Consolidated Balance Sheets as of June 30, 2024. (B) Represents equity investments in (i) commercial redevelopment projects and (ii) operating companies providing services throughout the real estate industry, including investments in Covius Holding Inc., 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. (C) Includes goodwill derived from the acquisition of Newrez, Guardian, Genesis and Sculptor. (D) Represents loans made pursuant to a senior credit agreement and a senior subordinated credit agreement to an entity affiliated with funds managed by an affiliate of the Former Manager. The loans are accounted for under the fair value option. (E) Represents collateral posted as a result of changes in fair value of Rithm Capital’s (i) government and government-backed securities securing its secured financing agreements and (ii) derivative instruments. (F) Represents notes receivable secured by commercial properties. The notes are accounted for under the fair value option. (G) During the second quarter of 2024, the Company transferred an investment in a note receivable with a fair value of $365.0 million subject to a repo financing of $323.5 million from a third party, to a nonconsolidated joint venture for cash consideration of $36.8 million. The transaction did not meet sale accounting under ASC 860 and, as a result, was treated as a secured borrowing for accounting purposes for which the Company elected the fair value option and is included in Other liabilities in our Consolidated Balance Sheets. The amount presented within Notes receivable financing is comprised of the repo financing and the non-recourse liability in a secured borrowing. The Company continues to reflect the transferred note in Other Assets in our Consolidated Balance Sheets, at fair value. |
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 10,541 Property received in satisfaction of loan 17,934 Sales (A) (15,454) Valuation (provision) reversal (1,365) Balance at June 30, 2024 $ 27,163 (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: June 30, 2024 December 31, 2023 (As Restated) Outstanding Face Amount Carrying Loan Weighted Average Yield Weighted Average Life (Years) (A) Carrying Value Investments of consolidated CFEs (B) $ 3,577,247 $ 3,347,246 10,411 5.5 % 25.9 $ 3,038,587 Residential mortgage loans, HFI, at fair value $ 421,507 $ 368,866 7,823 8.5 % 5.2 $ 379,044 Residential mortgage loans, HFS Acquired performing loans (C) 61,427 53,951 1,790 8.0 % 5.5 57,038 Acquired non-performing loans (D) 21,874 18,943 247 6.1 % 3.9 21,839 Total residential mortgage loans, HFS $ 83,301 $ 72,894 2,037 7.5 % 5.1 $ 78,877 Residential mortgage loans, HFS, at fair value Acquired performing loans (C)(E) 850,561 834,383 3,041 5.8 % 11.2 400,603 Acquired non-performing loans (D)(E) 233,580 214,071 1,130 3.7 % 23.0 204,950 Originated loans 2,723,582 2,789,475 9,872 7.2 % 29.2 1,856,312 Total residential mortgage loans, HFS, at fair value $ 3,807,723 $ 3,837,929 14,043 6.7 % 24.8 $ 2,461,865 (A) For loans classified as Level 3 in the fair value hierarchy, the weighted average life is based on the expected timing of the receipt of cash flows. For Level 2 loans, the weighted average life is based on the contractual term of the loan. (B) Residential mortgage loans 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. (C) Performing loans are generally placed on non-accrual status when principal or interest is 90 days or more past due. (D) As of June 30, 2024, Rithm Capital has placed non-performing loans, HFS on non-accrual status, except as described in (E) below. (E) Includes $217.2 million and $192.6 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. The following table summarizes Mortgage loans receivable, at fair value and mortgage loans receivable held by consolidated CFEs by loan type as of June 30, 2024: 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 $ 886,359 $ 211,184 $ 1,097,543 43.3 % 396 28.3 % 11.2 % 18.3 72.8% / 62.3% Bridge 898,306 220,071 1,118,377 43.8 % 575 41.2 % 10.1 % 24.6 67.7% Renovation 264,601 60,848 325,449 12.9 % 426 30.5 % 10.5 % 12.5 81.7%/ 67.4% $ 2,049,266 $ 492,103 $ 2,541,369 100.0 % 1,397 100.0 % 10.6 % 20.4 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. See Note 19 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 loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets: Balance at December 31, 2023 (As Restated) $ 1,879,319 Initial loan advances 931,574 Construction holdbacks and draws 392,874 Paydowns and payoffs (798,720) Fair value adjustments 17,418 Purchased loans discount amortization 871 Transfer of loans to REO (4,311) Transfers from (to) assets of consolidated CFEs (369,759) Balance at June 30, 2024 $ 2,049,266 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 — 2,211 2,211 Proceeds from repayments (33,250) (4,420) (37,670) Balance at June 30, 2024 $ 364,977 $ 29,114 $ 394,091 |
Schedule of Difference Between Aggregate UPB and Aggregate Carrying Value of Notes and Loans Receivable | 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: June 30, 2024 December 31, 2023 Days Past Due UPB Carrying Value Carrying Value Over (Under) UPB UPB Carrying Value Carrying Value Over (Under) UPB 90+ $ 340,323 $ 304,967 $ (35,356) $ 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: June 30, 2024 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 $ 1,991,233 $ 2,009,083 $ 17,850 $ 1,838,935 $ 1,837,513 $ (1,422) 90+ 45,996 40,183 $ (5,813) 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: June 30, 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 $ 493,354 $ 394,091 $ (99,263) $ 565,786 $ 429,550 $ (136,236) 90+ — — $ — — — $ — (A) Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements. |
EXCESS MORTGAGE SERVICING RIG_2
EXCESS MORTGAGE SERVICING RIGHTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing [Abstract] | |
Schedule of Carrying Value of Investments in Excess MSRs | The following table summarizes activity related to MSRs and MSR financing receivables: Balance as of December 31, 2023 $ 8,405,938 Purchases, net — Transfers — Acquisition 697,494 Originations (A) 580,244 Sales 2,404 Change in fair value due to: Realization of cash flows (B) (284,189) Change in valuation inputs and assumptions 291,440 Balance as of June 30, 2024 $ 9,693,331 (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 June 30, 2024: UPB of Underlying Mortgages Weighted Average Life (Years) (A) Carrying Value (B) Agency $ 381,516,738 6.6 $ 6,079,335 Non-Agency 72,106,898 5.4 885,053 Ginnie Mae (C) 133,419,752 6.3 2,728,943 Total/Weighted Average $ 587,043,388 6.4 $ 9,693,331 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Represents fair value. As of June 30, 2024, weighted average discount rates of 8.9% (range of 8.7% – 10.3%) were used to value Rithm Capital’s MSRs and MSR financing receivables. (C) As of June 30, 2024, Rithm Capital holds approximately $1.9 billion in residential mortgage loans subject to repurchase and the related residential mortgage loans repurchase liability on its Consolidated Balance Sheets. The following table presents activity related to the carrying value of investments in Excess MSRs: Total (A) Balance as of December 31, 2023 $ 208,385 Purchases 122,887 Interest income 10,522 Other income (656) Proceeds from repayments (19,122) Proceeds from sales — Change in fair value 19,430 Acquisition of assets from Fortress Excess MSR JV 55,192 Reclassification of SLS serviced Excess MSRs to Full MSRs (1,032) Balance as of June 30, 2024 $ 395,606 (A) |
Schedule of Investments in Excess MSRs and Changes in Fair Value of Investments of Excess MSR | The following summarizes investments in Excess MSRs: June 30, 2024 December 31, 2023 Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis Carrying Value (B) Carrying Value (B) Rithm Capital (C, D) Mr. Cooper Total 65.0% – 80.0% (69.9%) 20.0% – 35.0% 6 $ 339,048 $ 395,606 $ 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 June 30, 2024 (Note 14) on $14.0 billion UPB underlying these Excess MSRs. Changes in fair value of Excess MSR investments consist of the following: Three Months Ended Six Months Ended 2024 2023 2024 2023 Original and Recaptured Pools $ 21,352 $ (599) $ 19,430 $ (10,417) |
Schedule of Activity of Investments in Equity Method Investees | The following table summarizes the activity of Rithm Capital’s investments in Excess MSR equity method investees: Balance at December 31, 2023 $ 62,765 Distributions of earnings from equity method investees (344) Distributions of capital from equity method investees (8,846) Change in fair value of investments in equity method investees 1,617 Equity method investees transferred to direct excess MSR (55,192) Indirect Excess MSR at June 30, 2024 $ — |
SERVICER ADVANCE INVESTMENTS (T
SERVICER ADVANCE INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 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: June 30, 2024 December 31, 2023 Principal and interest advances $ 624,563 $ 616,801 Escrow advances (taxes and insurance advances) 1,358,320 1,442,697 Foreclosure advances 891,268 767,171 Gross advance balance (A)(B) 2,874,151 2,826,669 Reserves, impairment, unamortized discount, net of recovery accruals (99,641) (66,419) Total servicer advances receivable $ 2,774,510 $ 2,760,250 (A) Includes $550.8 million and $585.0 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies. (B) Amortized Cost Basis Carrying Value (A) Weighted Average Discount Rate Weighted Average Yield Weighted Average Life (Years) (B) June 30, 2024 Servicer advance investments $ 336,131 $ 357,220 6.2 % 7.0 % 8.3 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 June 30, 2024 Servicer advance investments (D) $ 13,974,237 $ 302,282 2.2 % $ 262,069 84.7 % 82.5 % 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: June 30, 2024 December 31, 2023 Principal and interest advances $ 52,686 $ 57,909 Escrow advances (taxes and insurance advances) 137,726 149,346 Foreclosure advances 111,870 113,375 Total $ 302,282 $ 320,630 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2024 $ 24,376 $ 5,092 $ 55,731 $ 46,658 $ 131,857 |
Schedule of Acquired Identifiable Intangible Assets | The following table presents the details of identifiable intangible assets acquired: ($ in millions) Estimated Useful Life Amount Customer Relationships 4.5 $ 16.0 Total identifiable intangible assets $ 16.0 The following table summarizes the acquired identifiable intangible assets: Estimated Useful Lives (Years) June 30, 2024 December 31, 2023 Gross Intangible Assets Management contracts 10 $ 275,000 $ 275,000 Customer relationships 2 to 9 73,949 57,949 Purchased technology 3 to 7 139,964 137,922 Trademarks / Trade names 1 to 5 10,259 10,259 $ 499,172 $ 481,130 Accumulated Amortization (A) Management contracts $ 17,090 $ 3,388 Customer relationships 20,022 17,834 Purchased technology 91,685 67,145 Trademarks / Trade names 5,433 4,843 $ 134,230 $ 93,210 Intangible Assets, Net Management contracts $ 257,910 $ 271,612 Customer relationships 53,927 40,115 Purchased technology (B) 48,279 70,777 Trademarks / Trade names (C) 4,826 5,416 $ 364,942 $ 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 June 30, 2024: Year Ending Amortization Expense July 1 through December 31, 2024 $ 36,216 2025 49,622 2026 40,778 2027 35,834 2028 35,289 2029 and thereafter 143,962 $ 341,701 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Future Commitments Under Non-Cancelable Operating Leases | The table below summarizes the future commitments under the non-cancelable leases: Year Ending Operating Leases Finance Leases Total July 1 through December 31, 2024 $ 25,523 $ — $ 25,523 2025 41,511 228 41,739 2026 35,451 228 35,679 2027 36,452 228 36,680 2028 26,800 — 26,800 2029 and thereafter 40,189 — 40,189 Total remaining undiscounted lease payments 205,926 684 206,610 Less: imputed interest 31,428 76 31,504 Total remaining discounted lease payments $ 174,498 $ 608 $ 175,106 |
Schedule of Future Commitments Under Non-Cancelable Finance Leases | The table below summarizes the future commitments under the non-cancelable leases: Year Ending Operating Leases Finance Leases Total July 1 through December 31, 2024 $ 25,523 $ — $ 25,523 2025 41,511 228 41,739 2026 35,451 228 35,679 2027 36,452 228 36,680 2028 26,800 — 26,800 2029 and thereafter 40,189 — 40,189 Total remaining undiscounted lease payments 205,926 684 206,610 Less: imputed interest 31,428 76 31,504 Total remaining discounted lease payments $ 174,498 $ 608 $ 175,106 |
Schedule of Other Information Related to Leases and Supplemental Information | Other information related to leases is summarized below: June 30, 2024 December 31, 2023 Weighted average remaining lease term (years) Operating leases 5.3 5.8 Finance leases 3.0 3.5 Weighted average discount rate Operating leases 6.5 % 6.2 % Finance leases 7.9 % 7.9 % Six Months Ended June 30, Supplemental Information 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 17,551 $ 15,752 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 14,846 1 |
DERIVATIVES AND HEDGING (Tables
DERIVATIVES AND HEDGING (Tables) | 6 Months Ended |
Jun. 30, 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 and US Treasury Short Sales | 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: June 30, 2024 December 31, 2023 (As Restated) Derivative and hedging assets Interest rate swaps (A) $ — $ 106 IRLCs 23,395 26,482 TBAs 19,134 1,492 Treasury short sales (B) 11,828 — $ 54,357 $ 28,080 Derivative and hedging liabilities IRLCs 6,984 2,678 TBAs 11,976 49,087 Other commitments (C) 16,140 — $ 35,100 $ 51,765 (A) Net of $1.1 million and $342.0 million of related variation margin accounts as of June 30, 2024 and December 31, 2023, respectively. (B) Net of $1.5 billion of related reverse repurchase agreements as of June 30, 2024. As of December 31, 2023, treasury securities payable and related reverse repurchase agreements are presented on a gross basis on the Consolidated Balance Sheets. (C) During the first quarter of 2024, 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: June 30, 2024 December 31, 2023 (As Restated) Interest rate swaps (A) $ 3,375,000 $ 7,979,988 IRLCs 4,438,032 2,757,060 Treasury short sales (B) 1,485,000 1,800,000 TBAs, short position (C) 9,763,300 6,013,100 Other commitments 24,364 — (A) Includes $0.7 billion notional of receive Secured Overnight Financing Rate (“SOFR”)/pay fixed of 4.6% and $2.7 billion notional of receive fixed of 4.3%/pay SOFR with weighted average maturities of 29 months and 48 months, respectively, as of June 30, 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 US Treasury Notes sold short. (C) 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 Six Months Ended 2024 2023 2024 2023 Gain on originated residential mortgage loans, HFS, net (A) IRLCs $ (14,817) $ (19,898) $ (7,332) $ 6,342 TBAs 15,484 71,212 53,394 13,229 Interest rate swaps — (684) — (1,931) $ 667 $ 50,630 $ 46,062 $ 17,640 Realized and unrealized gains (losses), net (B) Interest rate swaps 1,429 215,445 30,590 71,820 TBAs (14,424) 507 (12,901) (6,875) Treasury short sales (C) 12,952 — 41,297 — Other commitments 957 — (16,140) — $ 914 $ 215,952 $ 42,846 $ 64,945 Total gain (loss) $ 1,581 $ 266,582 $ 88,908 $ 82,585 (A) Represents unrealized gain (loss). (B) Excludes $10.1 million gain and $11.5 million loss for the three months ended June 30, 2024 and 2023, respectively, and $5.4 million loss and $1.6 million loss for the six months ended June 30, 2024 and 2023, respectively, included within Gain on originated residential mortgage loans, HFS, net (Note 7). (C) Refer to the table below for detail regarding US Treasury short sales: June 30, 2024 Face Sale proceeds Fair value Unrealized gain (loss) position Reverse repurchase agreements (A) Net asset (liability) (B) Short sale liabilities $ 1,485,000 1,490,306 $ 1,483,816 $ 6,491 $ 1,496,956 $ 13,140 (A) Reverse repurchase agreements are lending facilities used to borrow securities to effectuate short sales of US Treasury securities. (B) |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Secured Financing Agreements, Secured Notes and Bonds Payable and Debt Obligations Related to Consolidated Funds and Carrying Value of Debt Obligations | The following table summarizes Secured Financing Agreements, Secured Notes and Bonds Payable and also includes debt obligations of consolidated CFEs: June 30, 2024 December 31, 2023 Collateral (As Restated) 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) $ 3,799,496 $ 3,799,496 Jul-24 to Feb-26 6.9 % 0.6 $ 4,244,227 $ 4,296,216 $ 4,238,965 22.8 $ 1,940,038 Warehouse Credit Facilities-Mortgage Loans Receivable (G) 1,411,054 1,411,054 Mar-25 to Dec-25 8.0 % 1.3 1,721,912 1,731,239 1,731,239 1.1 1,337,010 Government and government-backed securities (F) 9,114,181 9,114,181 Jul-24 to Feb-25 5.4 % 0.2 9,559,841 9,361,449 9,496,785 8.6 8,152,469 Non-Agency RMBS (E) 630,000 630,000 Jul-24 to Oct-28 7.4 % 0.6 17,276,385 985,108 1,008,536 7.1 610,189 CLOs (G) 191,655 190,196 Jan-30 to Oct-36 6.4 % 8.8 192,683 N/A 193,560 8.8 183,947 SFR Properties and Commercial (G) 34,972 34,972 Dec-24 8.2 % 0.5 N/A 82,407 82,407 N/A 337,630 Total Secured Financing Agreements 15,181,358 15,179,899 6.1 % 0.5 12,561,283 Secured Notes and Bonds Payable Excess MSRs (E) 161,406 161,406 Oct-25 8.7 % 3.3 56,559,914 221,408 255,389 6.0 181,522 MSRs (H) 5,395,119 5,389,633 Dec-24 to Nov-27 7.5 % 1.4 569,894,934 7,212,153 9,429,829 6.4 4,800,728 Servicer Advance Investments (I) 262,069 262,069 Mar-26 7.3 % 1.7 302,282 336,131 357,220 8.3 278,042 Servicer Advances (I) 2,281,451 2,280,652 Jul-24 to Jun-26 8.1 % 1.5 2,634,706 2,623,070 2,623,070 0.7 2,254,369 Consumer Loans (J) 811,073 786,425 Jun-28 to Sep 37 6.4 % 3.9 1,011,653 984,285 946,367 1.6 1,106,974 SFR Properties (K) 830,582 791,984 Mar-26 to Sep-27 4.1 % 2.8 N/A 940,601 940,601 N/A 789,174 Mortgage Loans Receivable 200,000 200,000 Jul-26 5.8 % 2.0 224,995 224,995 224,995 0.6 200,000 Secured Facility- Asset Management 75,000 70,393 Nov-25 8.8 % 1.3 N/A N/A N/A N/A 69,121 CLOs (G) 13,361 13,329 Jul-30 6.8 % 6.0 15,780 N/A 15,017 6.0 30,258 Total Secured Notes and Bonds Payable 10,030,061 9,955,891 7.3 % 1.8 10,360,188 Notes Payable of Consolidated CFEs (L) Consolidated funds (M) 222,250 221,801 May-37 5.0 % 4.3 202,130 N/A 200,552 N/A 218,157 Residential Mortgage Loans 3,126,741 2,887,692 Mar-64 4.4 % 25.9 3,577,247 N/A 3,347,246 25.9 2,618,082 Mortgage Loans Receivable 454,249 451,682 Mar-39 6.8 % 14.7 479,203 479,203 492,103 1.0 318,998 Total Notes Payable of Consolidated CFEs 3,803,240 3,561,175 4.8 % 23.1 3,155,237 Total / Weighted Average $ 29,014,659 $ 28,696,965 6.3 % 4.0 $ 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 $164.5 million as of June 30, 2024. (D) Includes $11.3 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) All SOFR- or Euro Interbank Offered Rate (EURIBOR) based floating interest rates. (H) Includes $4.5 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 $0.9 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 1.6% 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) Includes (i) SpringCastle debt, which is primarily composed of the following classes of asset-backed notes held by third parties: $172.2 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) $581.1 billion of debt collateralized by the Marcus loans with an interest rate of SOFR plus a margin of 3.0%. (K) Includes $830.6 million of fixed-rate notes with an interest rate ranging from 3.5% to 7.1%. (L) See Note 20 for the balance sheets of consolidated CFEs. (M) 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 20 ). 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 Real Estate and Other Securities Residential Mortgage Loans and REO Consumer Loans SFR Properties and Commercial Mortgage Loans Receivable Asset Management Total Balance at December 31, 2023 (As Restated) $ 2,713,933 $ 4,800,728 $ 8,762,658 $ 5,208,120 $ 1,106,974 $ 1,126,804 $ 1,856,008 $ 501,483 $ 26,076,708 Secured Financing Agreements Borrowings — — 40,053,308 26,670,929 — 15,183 1,807,048 17,404 68,563,872 Repayments — — (39,071,785) (24,811,728) — (324,197) (1,733,004) (6,068) (65,946,782) FX remeasurement — — — — — — — (4,987) (4,987) Capitalized deferred financing costs, net of amortization — — — 257 — 6,356 — (100) 6,513 Secured Notes and Bonds Payable Acquired borrowings, net of discount (Note 3) 190,596 — — — — — — — 190,596 Borrowings 1,157,000 1,191,159 — — — — — 5,225 2,353,384 Repayments (1,357,552) (603,815) — (650,000) (323,594) (2,811) — (22,194) (2,959,966) FX remeasurement — — — — — — — (99) (99) Unrealized (gain) loss on notes, fair value — — — — 2,451 — — — 2,451 Capitalized deferred financing costs, net of amortization 150 1,561 — — 594 5,621 — 1,411 9,337 Notes Payable of Consolidated CFEs Borrowings — — — 445,250 — — 454,249 — 899,499 Repayments — — — (169,363) — — (324,062) — (493,425) Discount on borrowings, net of amortization — — — (24,260) — — — — (24,260) Unrealized (gain) loss on notes, fair value — — — 17,983 — — 5,228 3,644 26,855 Capitalized deferred financing costs, net of amortization — — — — — — (2,731) — (2,731) Balance at June 30, 2024 $ 2,704,127 $ 5,389,633 $ 9,744,181 $ 6,687,188 $ 786,425 $ 826,956 $ 2,062,736 $ 495,719 $ 28,696,965 (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 June 30, 2024 are as follows: Year Ending Nonrecourse (A) Recourse (B) Total July 1 through December 31, 2024 $ 842,943 $ 12,869,976 $ 13,712,919 2025 247,781 5,299,929 5,547,710 2026 2,084,833 1,950,470 4,035,303 2027 734,398 440,000 1,174,398 2028 705,783 — 705,783 2029 and thereafter 4,113,546 775,000 4,888,546 $ 8,729,284 $ 21,335,375 $ 30,064,659 (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, $3.9 billion, $0.2 billion, and $3.6 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 $14.1 billion, $6.1 billion, $1.1 billion, and $0.0 billion, respectively. |
Schedule of Borrowing Capacity | The following table represents borrowing capacity as of June 30, 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 $ 5,282,943 $ 2,342,051 $ 2,940,892 Loan originations 5,627,000 2,903,472 2,723,528 CLOs 314,230 191,655 122,575 Secured Notes and Bonds Payable Excess MSRs 197,016 161,406 35,610 MSRs 5,983,998 5,395,119 588,879 Servicer advances 4,210,000 2,543,520 1,666,480 SFR 296,423 192,606 103,816 Liabilities of Consolidated CFEs Consolidated funds 52,500 — 52,500 $ 21,964,110 $ 13,729,830 $ 8,234,280 (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 Potential Payments Under TRA | The table below presents the Company’s estimate as of June 30, 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 July 1 through December 31, 2024 $ — 2025 29,819 2026 17,374 2027 18,994 2028 15,940 2029 and thereafter 174,203 $ 256,330 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2024 were as follows: Principal Balance or Notional Amount Carrying Value Fair Value Level 1 Level 2 Level 3 Net Asset Value (“NAV”) Total Assets Excess MSRs (A) $ 56,559,914 $ 395,606 $ — $ — $ 395,606 $ — $ 395,606 MSRs and MSR financing receivables (A) 587,043,388 9,693,331 — — 9,693,331 — 9,693,331 Servicer advance investments 302,282 357,220 — — 357,220 — 357,220 Real estate and other securities (B) 19,081,035 10,134,642 24,866 9,300,237 809,539 — 10,134,642 Residential mortgage loans, HFS 83,301 72,894 — — 72,894 — 72,894 Residential mortgage loans, HFS, at fair value 3,807,723 3,837,929 — 3,822,208 15,721 — 3,837,929 Residential mortgage loans, HFI, at fair value 421,507 368,866 — — 368,866 — 368,866 Residential mortgage loans subject to repurchase 1,905,625 1,905,625 — 1,905,625 — — 1,905,625 Consumer loans 1,011,653 946,367 — — 946,367 — 946,367 Derivative and hedging assets 11,640,055 54,357 11,828 19,134 23,395 — 54,357 Mortgage loans receivable 2,049,266 2,049,266 — — 2,049,266 — 2,049,266 Notes receivable 464,240 364,977 — — 364,977 — 364,977 Loans receivable 29,114 29,114 — — 29,114 — 29,114 Cash, cash equivalents and restricted cash 1,535,691 1,535,691 1,561,715 — — — 1,561,715 Assets of consolidated CFEs - funds (D) 318,315 354,013 10,892 — — 343,121 354,013 Assets of consolidated CFEs - loan securitizations (D) 4,056,450 3,878,790 39,352 3,347,335 492,103 — 3,878,790 Other assets N/A 55,586 — — 55,586 — 55,586 $ 36,034,274 $ 1,648,653 $ 18,394,539 $ 15,673,985 $ 343,121 $ 36,060,298 Liabilities Secured financing agreements $ 15,181,358 $ 15,179,899 $ — $ 14,985,142 $ 194,757 $ — $ 15,179,899 Secured notes and bonds payable (C) 10,030,061 9,955,891 — — 10,475,128 — 10,475,128 Unsecured notes, net of issuance costs 1,288,021 1,197,294 — — 1,194,395 — 1,194,395 Residential mortgage loan repurchase liability 1,905,625 1,905,625 — 1,905,625 — — 1,905,625 Derivative liabilities 7,445,641 35,100 — 11,976 23,124 — 35,100 Excess spread financing 16,149,789 116,142 — — 116,142 — 116,142 Notes Receivable Financing 323,452 352,683 — — 352,683 — 352,683 Liabilities of consolidated CFEs - funds (D) 222,250 223,726 1,925 — 221,801 — 223,726 Liabilities of consolidated CFEs - loan securitizations (D) 3,579,739 3,352,107 12,734 2,887,692 451,682 — 3,352,108 $ 32,318,467 $ 14,659 $ 19,790,435 $ 13,029,712 $ — $ 32,834,806 (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) For the purpose of this table, real estate and other securities include government and government-backed securities, non-agency RMBS and CLOs, including US Treasury Bills classified as Level 1 and held at amortized cost basis of $24.9 million (see Note 6). (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 $205.3 million as of June 30, 2024. (D) Represents assets and notes issued of consolidated VIEs accounted for under the CFE election. |
Schedule of Changes in the Company’s Level 3 Inputs Financial Assets | The following table summarizes the changes in the Company’s Level 3 financial assets for the period presented: Level 3 Excess MSRs (A) MSRs and MSR Financing Receivables (A) Servicer Advance Investments Real Estate and Other Securities Derivatives (B) Residential Mortgage Loans Consumer Loans Notes and Loans Receivable Mortgage Loans Receivable (C) 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 $ 2,232,914 $ 14,331,652 Transfers Transfers from Level 3 — — (7,873) — — (142,046) — — — (149,919) Transfers to Level 3 — — — — — 1,389 — — — 1,389 Computershare Mortgage Acquisition (Note 3) (1,032) 697,494 — — — — — — — 696,462 Gain (loss) included in net income Credit losses on securities (D) — — — (914) — — — — — (914) Servicing revenue, net (E) Included in servicing revenue (E) — 7,251 — — — — — — — 7,251 Change in fair value of Excess MSRs (D) 19,430 — — — — — — — — 19,430 Excess MSRs, equity method investees (D) 1,617 — — — — — — — — 1,617 Servicer advance investments — 6,388 — — — — — — 6,388 Consumer loans — — — — — (51,389) — — (51,389) Residential mortgage loans — — — — 24,641 — — — 24,641 Gain (loss) on settlement of investments, net (656) — — 36 — — — — — (620) Other income (loss), net (D) — — 5,585 (23,472) 4,348 — — 25,552 12,013 Gains (losses) included in OCI (F) — — (3,474) — — — — — (3,474) Interest income 10,522 — 13,254 14,869 — — 15,978 2,211 — 56,834 Purchases, sales and repayments Purchases, net (G) 122,887 — 400,652 80,517 — 246,892 — — — 850,948 Proceeds from sales — 2,404 — — — (61,532) 10,098 — — (49,030) Proceeds from repayments (28,312) $ — (432,082) (91,109) — (32,086) (302,325) (37,670) (1,035,473) (1,959,057) Originations and other 580,244 — — (61) (170,400) — — 1,318,376 1,728,159 Balance at June 30, 2024 $ 395,606 $ 9,693,331 $ 357,220 $ 809,539 $ 271 $ 384,587 $ 946,367 $ 394,091 $ 2,541,369 $ 15,522,381 (A) Includes the recapture agreement for each respective pool, as applicable. (B) For the purpose of this table, the IRLC asset and liability positions and other commitment derivatives are shown net. (C) Includes mortgage loans receivable of consolidated CFEs classified as Level 3 in the fair value hierarchy. (D) Gain (loss) recorded in earnings during the period is attributable to the change in unrealized gain (loss) relating to Level 3 assets still held at the reporting dates and realized gain (loss) recorded during the period. (E) See Note 5 for further details on the components of servicing revenue, net. (F) Gain (loss) included in unrealized gain (loss) on available-for-sale securities, net in the Consolidated Statements of Comprehensive Income. (G) Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection. |
Schedule of 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: Level 3 Asset-Backed Securities Issued Notes Payable of CFEs - Consolidated Funds Notes Payable of CFEs - Mortgage Loans Receivable Excess Spread Financing Notes Receivable Financing Total Balance at December 31, 2023 (As Restated) $ 235,770 $ 218,157 $ 318,998 $ — $ — $ 772,925 Transfers Transfers from Level 3 — — — — — — Transfers to Level 3 — — — — 352,683 352,683 Computershare Mortgage Acquisition (Note 3) — — — 125,168 — 125,168 Gains (losses) included in net income — Servicing revenue, net (A) — — — (9,026) — (9,026) Other income (A) 2,451 3,644 5,228 — — 11,323 Purchases, sales and repayments Purchases — — — — — — Proceeds from sales — — 451,128 — — 451,128 Payments (32,935) — (324,062) — — (356,997) Other — — 390 — — 390 Balance at June 30, 2024 $ 205,286 $ 221,801 $ 451,682 $ 116,142 $ 352,683 $ 1,347,594 (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 Estimated Change in Fair Value of Interests in the Agency MSRs, Non-Agency MSRs and Ginnie Mae MSRs | The following table summarizes certain information regarding the ranges and weighted averages of inputs used as of June 30, 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 2.4% – 11.5% (6.9%) 0.3% – 15.0% (5.0%) 0.0% – 91.6% (56.4%) 7 – 32 (21) 11 – 28 (19) MSRs, MSR Financing Receivables, Excess Spread Financing Agency 2.5% – 99.4% (5.8%) 0.0% – 100.0% (1.6%) — (G) 2 – 159 (27) 0 – 40 (23) Non-Agency 1.8% – 100.0% (8.7%) 0.0% – 100.0% (24.1%) — (G) 1 – 156 (44) 0 – 58 (22) Ginnie Mae 2.1% – 78.5% (8.8%) 0.0% – 100.0% (7.7%) — (G) 8 – 154 (45) 0 – 42 (27) Total/Weighted Average — MSRs, MSR Financing Receivables, Excess Spread Financing 1.8% – 100.0% (6.9%) 0.0% – 100.0% (5.3%) — (G) 1 – 159 (34) 0 – 58 (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 June 30, 2024, weighted average costs of subservicing of $6.86 – $6.97 ($6.89) per loan per month was used to value the agency MSRs. Weighted average costs of subservicing of $8.54 – $10.72 ($9.42) per loan per month was used to value the non-agency MSRs, including MSR financing receivables. Weighted average cost of subservicing of $8.20 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, MSR financing receivables, and Excess Spread Financing. The following table summarizes the estimated change in fair value of Rithm Capital’s interests in the Agency MSRs, owned as of June 30, 2024, given several parallel shifts in the discount rate, prepayment rate and delinquency rate: Fair value at June 30, 2024 $ 6,079,335 Discount rate shift in % -20% -10% 10% 20% Estimated fair value $ 6,601,506 $ 6,344,320 $ 5,835,324 $ 5,609,934 Change in estimated fair value: Amount $ 522,171 $ 264,985 $ (244,011) $ (469,401) Percentage 8.6 % 4.4 % (4.0) % (7.7) % Prepayment rate shift in % -20% -10% 10% 20% Estimated fair value $ 6,363,422 $ 6,216,274 $ 5,951,290 $ 5,831,466 Change in estimated fair value: Amount $ 284,087 $ 136,939 $ (128,045) $ (247,869) Percentage 4.7 % 2.3 % (2.1) % (4.1) % Delinquency rate shift in % -20% -10% 10% 20% Estimated fair value $ 6,096,639 $ 6,088,185 $ 6,070,197 $ 6,060,853 Change in estimated fair value: Amount $ 17,304 $ 8,850 $ (9,138) $ (18,482) Percentage 0.3 % 0.1 % (0.2) % (0.3) % 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 June 30, 2024, given several parallel shifts in the discount rate, prepayment rate and delinquency rate: Fair value at June 30, 2024 $ 885,053 Discount rate shift in % -20% -10% 10% 20% Estimated fair value $ 978,489 $ 929,530 $ 844,090 $ 806,673 Change in estimated fair value: Amount $ 93,436 $ 44,477 $ (40,963) $ (78,380) Percentage 10.6 % 5.0 % (4.6) % (8.9) % Prepayment rate shift in % -20% -10% 10% 20% Estimated fair value $ 939,289 $ 911,268 $ 860,064 $ 836,525 Change in estimated fair value: Amount $ 54,236 $ 26,215 $ (24,989) $ (48,528) Percentage 6.1 % 3.0 % (2.8) % (5.5) % Delinquency rate shift in % -20% -10% 10% 20% Estimated fair value $ 900,052 $ 892,478 $ 877,898 $ 870,916 Change in estimated fair value: Amount $ 14,999 $ 7,425 $ (7,155) $ (14,137) Percentage 1.7 % 0.8 % (0.8) % (1.6) % The following table summarizes the estimated change in fair value of Rithm Capital’s interests in the Ginnie Mae MSRs, owned as of June 30, 2024, given several parallel shifts in the discount rate, prepayment rate and delinquency rate: Fair value at June 30, 2024 $ 2,728,943 Discount rate shift in % -20% -10% 10% 20% Estimated fair value $ 2,966,767 $ 2,842,986 $ 2,623,622 $ 2,526,134 Change in estimated fair value: Amount $ 237,824 $ 114,043 $ (105,321) $ (202,809) Percentage 8.7 % 4.2 % (3.9) % (7.4) % Prepayment rate shift in % -20% -10% 10% 20% Estimated fair value $ 2,888,042 $ 2,804,727 $ 2,659,509 $ 2,595,473 Change in estimated fair value: Amount $ 159,099 $ 75,784 $ (69,434) $ (133,470) Percentage 5.8 % 2.8 % (2.5) % (4.9) % Delinquency rate shift in % -20% -10% 10% 20% Estimated fair value $ 2,774,102 $ 2,751,475 $ 2,706,569 $ 2,684,392 Change in estimated fair value: Amount $ 45,159 $ 22,532 $ (22,374) $ (44,551) Percentage 1.7 % 0.8 % (0.8) % (1.6) % 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 June 30, 2024: Fair Value Asset Type Outstanding Face Amount Amortized Cost Basis Multiple Quotes (A) Single Quote (B) Total Level Government-backed securities (C) $ 9,561,293 $ 9,362,992 $ 9,300,237 $ — $ 9,300,237 2 Non-agency and other securities (D) 9,494,742 779,758 548,047 261,492 809,539 3 Total $ 19,056,035 $ 10,142,750 $ 9,848,284 $ 261,492 $ 10,109,776 (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 government-backed securities 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 64.2% 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 $ 520,083 5.3% – 20.2% (7.6%) 0.0% – 20.0% (6.4%) 0.0% – 2.0% (0.5%) 0.0% – 50.0% (18.6%) (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. (C) Presented within Government and government-backed securities on the Consolidated Balance Sheets. (D) Presented within Other assets on the Consolidated Balance Sheets. 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 June 30, 2024: Performing Loans Fair Value Discount Rate Prepayment Rate CDR Loss Severity Acquired loans $ 13,970 8.2% – 8.6% (8.3%) 3.3% – 5.1% (3.8%) 1.3% – 6.1% (3.0%) 14.7% – 48.0% (40.0%) Non-Performing Loans Fair Value Discount Rate Annual change in home prices CDR Current Value of Underlying Properties Acquired loans $ 1,751 9.3% 18.7% 1.4% 325.0% 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 June 30, 2024: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Residential mortgage loans HFI, at fair value $ 368,866 8.2% – 9.3% (8.5%) 3.0% – 5.1% (4.2%) 1.4% – 6.1% (3.9%) 14.9% – 48.0% (40.8%) 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 June 30, 2024: Fair Value Discount Rate Prepayment Rate CDR Loss Severity SpringCastle $ 244,578 9.2% – 10.2% (9.4%) 9.8% – 36.6% (14.8%) 2.8% – 8.0% (5.2%) 87.0% – 100.0% (93.9%) Marcus 701,789 7.7% 20.8% 12.6% 75.3% Consumer loans, HFI, at fair value $ 946,367 Fair Value Discount Rate Prepayment Rate CDR Loss Severity Acquired mortgage loans receivable $ 49,478 10.6% —% 1.8% – 2.5% (1.9%) 25.0% Originated mortgage loans receivable 1,999,788 9.2% N/A N/A N/A Mortgage loans receivable, at fair value $ 2,049,266 The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing IRLCs as of June 30, 2024: Fair Value Loan Funding Probability Fair Value of Initial Servicing Rights (Bps) IRLCs, net $ 16,411 0.0% – 100.0% (85.6%) 9.2 – 345.0 (242.9) The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing asset-backed securities issued as of June 30, 2024: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Asset-backed securities issued $ 205,286 5.8% 14.8% 5.2% 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 June 30, 2024: Fair Value Discount Rate Notes receivable $ 364,977 N/A Loans receivable 29,114 12.8 % Total $ 394,091 |
Schedule of 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, as of June 30, 2024: 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 2.4% 4.8% 19.8% 19.9 bps 6.2% 21.4 (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 June 30, 2024: Fund Type (A) Fair Value Redemption Frequency Redemption Notice Period Open-ended $ 239,711 Monthly - Annually (B) 30 days - 90 days (B) Close-ended 103,410 None (C) N/A Total $ 343,121 (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) $171.8 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. |
Schedule of Loan Securitizations | Loan Securitizations Investments Notes Payable Fair Value Residential mortgage loans $ 3,347,335 $ 2,887,692 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 as of June 30, 2024: Loan securitizations Investments at Notes Payable at Fair Value Spread Prepayment Rate (A) CDR (B) Loss Severity (C) Mortgage loans receivable $ 492,103 $ 451,682 2.1% - 4.9% (2.3%) 15.0% —% —% (A) Represents the annualized rate of the prepayments as a percentage of the total principal balance of the pool. (B) Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance of the pool. (C) |
Schedule of Inputs Used in Valuing Residential Mortgage Loans | The following table summarizes the inputs used in valuing these residential mortgage loans as of June 30, 2024: Fair Value Discount Rate Weighted Average Life (Years) (A) Prepayment Rate CDR (B) Loss Severity (C) Performing loans $ 53,951 6.6% – 8.6% (8.0%) 3.6 – 5.8 (5.5) 3.3% – 6.9% (3.5%) 1.8% – 16.2% (2.8%) 23.1% – 48.0% (36.4%) Non-performing loans 18,943 9.3% – 9.4% (5.8%) 5.7 – 6.4 (3.7) 1.6% – 3.0% (1.4%) 1.4% – 8.6% (3.3%) 14.9% – 27.3% (13.4%) Total/weighted average $ 72,894 7.4% 5.1 3.0% 2.9% 30.4% (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) |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 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 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 Sculptor Loan Financing Partners Consolidated CFEs (B) Total Loan Securitizations - Mortgage Loans Receivable Loan Securitizations - Residential Mortgage Loans Consolidated Funds June 30, 2024 Assets Servicer advance investments, at fair value $ 357,220 $ — $ — — $ — $ — $ — $ — $ 357,220 Residential mortgage loans, HFS, at fair value — — 407,036 — — — — — 407,036 Consumer loans — — — — — — — — — Assets of consolidated CFEs - investments — — — — — 492,103 3,347,335 343,121 4,182,559 Cash and cash equivalents 5,825 18,571 — — — — — — 24,396 Restricted cash 7,605 — 5,986 — 5,104 4,074 11,851 10,099 44,719 Other assets 14 1,313 — — 41,660 23,427 — 793 67,207 Total Assets $ 370,664 $ 19,884 $ 413,022 $ — $ 46,764 $ 519,604 $ 3,359,186 $ 354,013 $ 5,083,137 Liabilities Secured financing agreements (A) — — 311,537 — — — — — 311,537 Secured notes and bonds payable (A) 262,069 — — — — — — — 262,069 Notes payable of consolidated CFEs (A) — — — — — 451,682 2,887,692 221,801 3,561,175 Accrued expenses and other liabilities 2,052 2,008 — — 24 548 12,185 1,925 18,742 Total Liabilities $ 264,121 $ 2,008 $ 311,537 $ — $ 24 $ 452,230 $ 2,899,877 $ 223,726 $ 4,153,523 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 — 371 6,263 1,763 20,132 Total Liabilities $ 277,010 $ 2,240 $ 1,002,227 $ 237,277 $ — $ 319,369 $ 2,624,345 $ 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) Reflect 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. June 30, 2024 December 31, 2023 (As Restated) Residential mortgage loan UPB and other collateral $ 7,761,760 $ 8,237,692 Weighted average delinquency (A) 5.3% 5.3% Net credit losses $ 161,752 $ 162,061 Face amount of debt held by third parties $ 7,101,285 $ 7,596,408 Carrying value of bonds retained by Rithm Capital (B)(C) $ 583,607 $ 543,447 Year to date cash flows received by Rithm Capital on these bonds $ 43,576 $ 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 19 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 25. June 30, 2024 December 31, 2023 Net assets of unconsolidated VIEs in which the Company has a variable interest $ 12,486,344 $ 12,782,124 Maximum risk of loss as a result of the Company’s involvement with unconsolidated VIEs: Unearned income and fees 30,284 37,468 Income and fees receivable 14,717 43,250 Investments 546,490 533,026 Unfunded commitments (A) 186,109 207,575 Other commitments 24,364 — Maximum Exposure to Loss $ 801,964 $ 821,319 (A) Includes commitments from certain current and former employees and executive managing directors in the amounts of $111.3 million and $97.5 million as of June 30, 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 25 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: June 30, 2024 December 31, 2023 Carrying value of commercial real estate held within unconsolidated VIEs $ 133,458 $ 66,652 Carrying value of Rithm Capital’s investments in unconsolidated commercial real estate VIEs $ 41,721 $ 29,210 |
Schedule of Others’ Interests in the Equity of Consolidated Subsidiaries and Others’ Interests in the Net Income (Loss) | Others’ interests in the equity of consolidated subsidiaries is computed as follows: June 30, 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 $ 106,544 10.7 % $ 11,389 $ 104,458 10.7 % $ 11,157 Newrez Joint Ventures $ 17,876 49.5 % $ 8,849 $ 16,607 49.5 % $ 8,220 Consumer Loan Companies (A) $ 54,249 — % $ — $ 72,361 46.5 % $ 33,748 Excess MSRs $ 147,000 20.0 % $ 29,400 $ — — % $ — Asset Management $ 740,265 n/m (B) $ 44,383 $ 673,523 n/m (B) $ 40,971 Others’ interests in the net income (loss) is computed as follows: Three Months Ended June 30, 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 $ (1,149) 10.7 % $ (123) $ 7,927 10.7 % $ 845 Newrez Joint Ventures $ 2,052 49.5 % $ 1,016 $ 781 49.5 % $ 386 Consumer Loan Companies (A) $ (7,318) 46.5 % $ (3,403) $ 12,168 46.5 % $ 5,658 Excess MSRs $ 23,182 20.0 % $ 4,636 $ — 0 — % $ — Asset Management $ 25,964 n/m (B) $ 835 $ — n/m (B) $ — Six Months Ended June 30, 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 $ 8,381 10.7 % $ 895 $ 6,557 10.7 % $ 699 Newrez Joint Ventures $ 2,164 49.5 % $ 1,071 $ 695 49.5 % $ 344 Consumer Loan Companies (A) $ (5,127) 46.5 % $ (2,384) $ 9,776 46.5 % $ 4,546 Excess MSRs $ 23,182 20.0 % $ 4,636 $ — 0 — % $ — Asset Management $ (13) n/m (B) $ 2,195 $ — n/m (B) $ — (A) On June 28, 2024 Rithm Capital purchased the remaining 46.5% interest in the Consumer Loan Companies from Blackstone for a total purchase price of $22.0 million. (B) Percentage in the table above deemed “n/m” are not meaningful. 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. |
EXPENSES, REALIZED AND UNREAL_2
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES), NET AND OTHER (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Revenues | Other Revenues consists of the following: Three Months Ended Six Months Ended 2024 2023 2024 2023 Property and maintenance $ 29,955 $ 33,117 $ 62,335 $ 66,755 Rental 18,920 17,743 37,869 35,866 Other 7,625 8,349 14,644 14,731 Total other revenues $ 56,500 $ 59,209 $ 114,848 $ 117,353 |
Schedule of General and Administrative Expenses | General and Administrative expenses consists of the following: Three Months Ended Six Months Ended 2024 2023 2024 2023 Legal and professional $ 26,941 $ 21,385 $ 48,430 $ 34,140 Loan origination 17,541 12,323 32,976 24,080 Occupancy 16,234 16,382 32,149 34,748 Subservicing 17,690 40,625 37,118 75,881 Loan servicing 3,502 2,930 9,092 6,230 Property and maintenance 30,022 23,935 62,286 47,970 Information technology 47,999 33,140 87,803 68,108 Other 47,194 31,198 94,463 58,240 Total general and administrative expenses $ 207,123 $ 181,918 $ 404,317 $ 349,397 |
Schedule of Components of Other Income (Loss) | The following table summarizes the components of other income (loss): Three Months Ended Six Months Ended 2024 2023 2024 2023 Real estate and other securities $ (87,979) $ (122,578) $ (190,942) $ (38,727) Residential mortgage loans and REO 22,623 (10,123) 26,149 7,974 Derivative and hedging instruments 17,054 215,952 58,986 64,946 Notes and bonds payable (2,857) 4,549 (2,631) 2,049 Consolidated CFEs (A) 33,384 (17,441) 49,797 (5,197) Other (B) 3,006 6,174 (974) (20,417) Realized and unrealized gains (losses), net $ (14,769) $ 76,533 $ (59,615) $ 10,628 Other income (loss), net 19,042 (47,898) 26,968 (73,064) Total other income (loss) $ 4,273 $ 28,635 $ (32,647) $ (62,436) (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. |
ASSET MANAGEMENT REVENUES (Tabl
ASSET MANAGEMENT REVENUES (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2024 2024 Management fees $ 59,859 $ 116,989 Incentive income 49,574 63,395 Other asset management income — 4,909 Total asset management revenues $ 109,433 $ 185,293 |
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: June 30, 2024 December 31, 2023 Management fees receivable $ 23,064 $ 23,757 Incentive income receivable 32,040 35,377 Total income and fees receivable $ 55,104 $ 59,134 The following table presents the Company’s unearned income and fees through Sculptor: June 30, 2024 December 31, 2023 Unearned management fees $ 1 $ 1 Unearned incentive income 30,283 37,467 Total unearned income and fees $ 30,284 $ 37,468 |
EQUITY AND EARNINGS PER SHARE (
EQUITY AND EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended Series June 30, 2024 December 31, 2023 Liquidation Preference (A) Issuance Discount Carrying Value (B) 2024 2023 2024 2023 Series A, 7.50% issued July 2019 (C) 6,200 6,200 $ 155,002 3.15 % $ 149,822 $ 0.47 $ 0.47 $ 0.94 $ 0.94 Series B, 7.125% issued August 2019 (C) 11,261 11,261 281,518 3.15 % 272,654 0.45 0.45 0.89 0.89 Series C, 6.375% issued February 2020 (C) 15,903 15,903 397,584 3.15 % 385,289 0.40 0.40 0.80 0.80 Series D, 7.00% issued September 2021 (D) 18,600 18,600 465,000 3.15 % 449,489 0.44 0.44 0.88 0.88 Total 51,964 51,964 $ 1,299,104 $ 1,257,254 $ 1.76 $ 1.76 $ 3.51 $ 3.51 (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 Common Dividends Declared | Common dividends have been declared as follows: Declaration Date Payment Date Per Share Total Amounts Distributed (millions) Quarterly Dividend 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 June 18, 2024 July 2024 0.25 122.4 |
Schedule of Outstanding Options | The following table summarizes outstanding options as of June 30, 2024. The last sales price on the New York Stock Exchange for Rithm Capital’s common stock in the quarter ended June 30, 2024 was $10.91 per share: Recipient Date of Grant/ Exercise (A) Number of Unexercised Options Exercisable as of June 30, 2024 Weighted Average Exercise Price (B) Intrinsic Value of Exercisable Options as of June 30, 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 7,050,335 9.38 10.81 Outstanding 21,473,990 21,473,990 (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. |
Schedule of Basic and Diluted Earnings Per Share Calculations | The following table summarizes the basic and diluted EPS calculations: Three Months Ended Six Months Ended 2024 2023 2024 2023 Net income (loss) $ 238,517 $ 386,685 $ 526,004 $ 476,634 Noncontrolling interests in income of consolidated subsidiaries 2,961 6,889 6,413 5,589 Dividends on preferred stock 22,395 22,395 44,790 44,790 Net income (loss) attributable to common stockholders $ 213,161 $ 357,401 $ 474,801 $ 426,255 Basic weighted average shares of common stock outstanding 486,721,836 483,091,792 485,029,307 480,642,680 Effect of dilutive securities: (A)(B) Stock options 1,078,804 — 988,302 — Common stock purchase warrants — — — 2,223,336 Restricted stock 120,151 285,169 197,452 247,384 Time-based restricted stock unit awards 1,488,716 — 1,152,513 — Performance-based restricted stock unit awards 1,295,297 — 950,579 — Time vesting Class B Profits Units (A)(B) 134,776 — 67,388 — Performance vesting Class B Profits Units (A)(B) 141,702 — 70,851 — Diluted weighted average shares of common stock outstanding 490,981,282 483,376,961 488,456,392 483,113,400 Basic earnings (loss) per share attributable to common stockholders $ 0.44 $ 0.74 $ 0.98 $ 0.89 Diluted earnings (loss) per share attributable to common stockholders $ 0.43 $ 0.74 $ 0.97 $ 0.88 (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) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of the following: Three Months Ended Six Months Ended 2024 2023 2024 2023 Current: Federal $ 1,138 $ — $ 1,750 $ 16 State and local 2,130 99 2,527 122 Foreign 1,928 — 3,704 — Total current income tax expense (benefit) 5,196 99 7,981 138 Deferred: Federal 39,219 48,232 115,672 34,064 State and local 6,698 8,199 19,934 5,522 Foreign 535 — 1,473 — Total deferred income tax expense (benefit) 46,452 56,431 137,079 39,586 Total income tax expense (benefit) $ 51,648 $ 56,530 $ 145,060 $ 39,724 |
BUSINESS AND ORGANIZATION (Deta
BUSINESS AND ORGANIZATION (Details) - USD ($) shares in Millions, $ in Millions | Jun. 11, 2024 | May 01, 2024 | Jun. 17, 2022 |
Great Ajax Corp. | |||
Related Party Transaction [Line Items] | |||
Number of shares issued (in shares) | 2.9 | ||
Net proceeds | $ 14 | ||
Percentage of common stock outstanding | 6.30% | ||
Great Ajax Corp. | |||
Related Party Transaction [Line Items] | |||
Warrant term | 5 years | ||
Computershare Mortgage Services Inc | |||
Related Party Transaction [Line Items] | |||
Business combination, consideration transferred | $ 708 | ||
Computershare Mortgage Services Inc | Mortgaging Servicing Rights | |||
Related Party Transaction [Line Items] | |||
Assets acquired | 56,000 | ||
Computershare Mortgage Services Inc | Third-Party Servicing UPB | |||
Related Party Transaction [Line Items] | |||
Assets acquired | $ 98,000 | ||
Manager | |||
Related Party Transaction [Line Items] | |||
Payment for management fee | $ 400 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | 1 Months Ended | ||
Feb. 29, 2020 | Aug. 31, 2019 | Jul. 31, 2019 | |
7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||
Cash and Cash Equivalents [Line Items] | |||
Interest rate | 7.50% | ||
7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||
Cash and Cash Equivalents [Line Items] | |||
Interest rate | 7.125% | ||
6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||
Cash and Cash Equivalents [Line Items] | |||
Interest rate | 6.375% |
BUSINESS ACQUISITIONS - Schedul
BUSINESS ACQUISITIONS - Schedule of Allocation of Total Consideration Paid to Assets Acquired and Liabilities Assumed (Details) - Computershare Mortgage Services Inc - USD ($) $ in Millions | 6 Months Ended | |
May 01, 2024 | Jun. 30, 2024 | |
Business Acquisition [Line Items] | ||
Total consideration | $ 708 | |
Assets | ||
Residential mortgage loans, held-for-sale | 2.4 | |
Servicer advances receivable | 275.8 | |
Mortgage servicing rights, at fair value | 696.5 | |
Cash and cash equivalents | 102 | |
Restricted cash | 2.2 | |
Other assets | 84 | |
Total Assets Acquired | 1,162.9 | |
Liabilities | ||
Accrued expenses and other liabilities | 236.1 | |
Secured notes and bonds payable | 190.6 | |
Total Liabilities Assumed | 426.7 | |
Noncontrolling interest | 0 | |
Net Assets | 736.2 | |
Bargain Purchase Gain | $ 28.2 | $ 28.2 |
BUSINESS ACQUISITIONS - Narrati
BUSINESS ACQUISITIONS - Narrative (Details) - Computershare Mortgage Services Inc - USD ($) $ in Millions | 6 Months Ended | |
May 01, 2024 | Jun. 30, 2024 | |
Business Acquisition [Line Items] | ||
Ownership percentage (as a percent) | 100% | |
Business combination, consideration transferred | $ 708 | |
Bargain purchase gain | $ 28.2 | $ 28.2 |
Revenue of acquiree since acquisition date, actual | 33.6 | |
Net income of acquiree since acquisition date, actual | 19.3 | |
Acquisition-related costs | $ 14.9 |
BUSINESS ACQUISITIONS - Sched_2
BUSINESS ACQUISITIONS - Schedule of Intangible Assets Acquired (Details) - Computershare Mortgage Services Inc $ in Millions | May 01, 2024 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 16 |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (Years) | 4 years 6 months |
Amount | $ 16 |
BUSINESS ACQUISITIONS - Sched_3
BUSINESS ACQUISITIONS - Schedule of Pro Forma Financial Information (Details) - Computershare Mortgage Services Inc - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Revenues | $ 1,246.2 | $ 1,216.7 | $ 2,623.9 | $ 2,089.2 |
Income (loss) before income taxes | $ 294.7 | $ 458.7 | $ 695.7 | $ 501.5 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) segment | Jun. 30, 2023 USD ($) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | ||
Segment Reporting [Abstract] | |||||||||
Number of reportable segments | segment | 5 | ||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenues | $ 1,229,407 | $ 1,110,339 | $ 2,490,025 | $ 1,935,127 | |||||
Interest expense and warehouse line fees | 465,944 | 324,235 | 875,771 | 628,450 | |||||
General and administrative | 207,123 | 181,918 | 404,317 | 349,397 | |||||
Compensation and benefits | 270,448 | 189,606 | 506,226 | 378,486 | |||||
Total operating expenses | 943,515 | 695,759 | 1,786,314 | 1,356,333 | |||||
Realized and unrealized gains (losses), net | (14,769) | 76,533 | (59,615) | 10,628 | |||||
Other income (loss), net | 19,042 | (47,898) | 26,968 | (73,064) | |||||
Total other income (loss) | 4,273 | 28,635 | (32,647) | (62,436) | |||||
Income (loss) before income taxes | 290,165 | 443,215 | 671,064 | 516,358 | |||||
Income tax expense (benefit) | 51,648 | 56,530 | 145,060 | 39,724 | |||||
Net income (loss) | 238,517 | 386,685 | 526,004 | 476,634 | |||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 2,961 | 6,889 | 6,413 | 5,589 | |||||
Dividends on preferred stock | 22,395 | 22,395 | 44,790 | 44,790 | |||||
Net income (loss) attributable to common stockholders - basic | 213,161 | 357,401 | 474,801 | 426,255 | |||||
Net income (loss) attributable to common stockholders - diluted | 213,161 | 357,401 | 474,801 | 426,255 | |||||
Investments | 27,319,080 | 27,319,080 | |||||||
Cash and cash equivalents | 1,238,736 | 1,238,736 | |||||||
Restricted cash | 322,979 | 322,979 | $ 409,896 | ||||||
Other assets | 8,799,458 | 8,799,458 | |||||||
Goodwill | 131,857 | 131,857 | 131,857 | ||||||
Assets of consolidated CFEs | [1] | 4,232,803 | 4,232,803 | 3,751,477 | |||||
Total assets | 42,018,889 | 42,018,889 | 39,717,084 | ||||||
Debt | 26,333,085 | 26,333,085 | |||||||
Other liabilities | 4,689,357 | 4,689,357 | |||||||
Liabilities of consolidated CFEs | [1] | 3,575,833 | 3,575,833 | 3,163,634 | |||||
Total liabilities | 34,598,275 | 34,598,275 | 32,616,046 | ||||||
Total equity | 7,420,614 | 7,194,684 | 7,420,614 | 7,194,684 | $ 7,243,372 | 7,101,038 | $ 6,954,543 | $ 7,010,068 | |
Noncontrolling interests in equity of consolidated subsidiaries | 94,021 | 94,021 | 94,096 | ||||||
Total Rithm Capital stockholders’ equity | 7,326,593 | 7,326,593 | 7,006,942 | ||||||
Investments in equity method investees | 203,039 | 203,039 | |||||||
Consolidated Entity, Excluding Consolidated VIE | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Restricted cash | [1] | 296,955 | 296,955 | 378,048 | |||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 498,978 | 465,347 | 968,869 | 935,004 | |||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows) | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | (67,898) | 22,032 | 16,277 | (120,272) | |||||
Servicing revenue, net | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 431,080 | 487,379 | 985,146 | 814,732 | |||||
Interest income | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 478,653 | 385,167 | 908,539 | 715,190 | |||||
Gain on originated residential mortgage loans, held-for-sale, net | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 153,741 | 178,584 | 296,199 | 287,852 | |||||
Other investment portfolio revenues | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 56,500 | 59,209 | 114,848 | 117,353 | |||||
Asset management revenues | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenues | 109,433 | 0 | 185,293 | 0 | |||||
Asset Management Interest Income | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenues | 4,900 | ||||||||
MSRs | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Realization of cash flows | (165,138) | (139,410) | (281,977) | (245,101) | |||||
Origination and Servicing | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Goodwill | 24,376 | 24,376 | 24,376 | ||||||
Investment Portfolio | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Goodwill | 5,092 | 5,092 | 5,092 | ||||||
Asset Management | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Goodwill | 46,658 | 46,658 | 46,658 | ||||||
Operating Segments | Origination and Servicing | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenues | 648,831 | 679,178 | 1,425,560 | 1,209,063 | |||||
Interest expense and warehouse line fees | 152,477 | 110,219 | 283,651 | 221,288 | |||||
General and administrative | 91,057 | 75,538 | 174,621 | 156,370 | |||||
Compensation and benefits | 184,853 | 161,600 | 338,659 | 322,114 | |||||
Total operating expenses | 428,387 | 347,357 | 796,931 | 699,772 | |||||
Realized and unrealized gains (losses), net | 0 | 274 | 0 | 251 | |||||
Other income (loss), net | 27,293 | (5,179) | 27,257 | (18,606) | |||||
Total other income (loss) | 27,293 | (4,905) | 27,257 | (18,355) | |||||
Income (loss) before income taxes | 247,737 | 326,916 | 655,886 | 490,936 | |||||
Income tax expense (benefit) | 38,960 | 49,207 | 135,161 | 45,535 | |||||
Net income (loss) | 208,777 | 277,709 | 520,725 | 445,401 | |||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 1,016 | 386 | 1,071 | 344 | |||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | |||||
Net income (loss) attributable to common stockholders - basic | 207,761 | 277,323 | 519,654 | 445,057 | |||||
Net income (loss) attributable to common stockholders - diluted | 207,761 | 277,323 | 519,654 | 445,057 | |||||
Investments | 11,635,825 | 11,635,825 | |||||||
Cash and cash equivalents | 614,849 | 614,849 | |||||||
Restricted cash | 153,526 | 153,526 | 195,490 | ||||||
Other assets | 3,835,566 | 3,835,566 | |||||||
Goodwill | 24,376 | 24,376 | |||||||
Assets of consolidated CFEs | 0 | 0 | |||||||
Total assets | 16,264,142 | 16,264,142 | 13,671,626 | ||||||
Debt | 8,586,918 | 8,586,918 | |||||||
Other liabilities | 3,669,928 | 3,669,928 | |||||||
Liabilities of consolidated CFEs | 0 | 0 | |||||||
Total liabilities | 12,256,846 | 12,256,846 | |||||||
Total equity | 4,007,296 | 4,007,296 | |||||||
Noncontrolling interests in equity of consolidated subsidiaries | 8,849 | 8,849 | |||||||
Total Rithm Capital stockholders’ equity | 3,998,447 | 3,998,447 | |||||||
Investments in equity method investees | 23,436 | 23,436 | |||||||
Operating Segments | Origination and Servicing | Consolidated Entity, Excluding Consolidated VIE | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Restricted cash | 153,526 | 153,526 | |||||||
Operating Segments | Origination and Servicing | Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 442,016 | 359,854 | 839,494 | 709,278 | |||||
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 | (127,401) | 45,767 | (34,040) | 8,241 | |||||
Operating Segments | Origination and Servicing | Servicing revenue, net | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 314,615 | 405,621 | 805,454 | 717,519 | |||||
Operating Segments | Origination and Servicing | Interest income | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 178,445 | 129,239 | 318,466 | 239,005 | |||||
Operating Segments | Origination and Servicing | Gain on originated residential mortgage loans, held-for-sale, net | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 155,771 | 144,318 | 301,640 | 252,539 | |||||
Operating Segments | Origination and Servicing | Other investment portfolio revenues | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 0 | 0 | 0 | 0 | |||||
Operating Segments | Origination and Servicing | Asset management revenues | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenues | 0 | 0 | 0 | 0 | |||||
Operating Segments | Investment Portfolio | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenues | 406,597 | 381,573 | 749,904 | 626,805 | |||||
Interest expense and warehouse line fees | 254,331 | 181,085 | 482,405 | 338,995 | |||||
General and administrative | 60,704 | 85,624 | 127,701 | 160,317 | |||||
Compensation and benefits | 3,478 | 7,963 | 8,221 | 15,099 | |||||
Total operating expenses | 318,513 | 274,672 | 618,327 | 514,411 | |||||
Realized and unrealized gains (losses), net | (41,975) | 58,633 | (104,545) | (6,250) | |||||
Other income (loss), net | (8,810) | (31,211) | (5,128) | (36,481) | |||||
Total other income (loss) | (50,785) | 27,422 | (109,673) | (42,731) | |||||
Income (loss) before income taxes | 37,299 | 134,323 | 21,904 | 69,663 | |||||
Income tax expense (benefit) | 2,909 | 8,304 | 4,157 | (2,736) | |||||
Net income (loss) | 34,390 | 126,019 | 17,747 | 72,399 | |||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 1,110 | 6,503 | 3,147 | 5,245 | |||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | |||||
Net income (loss) attributable to common stockholders - basic | 33,280 | 119,516 | 14,600 | 67,154 | |||||
Net income (loss) attributable to common stockholders - diluted | 33,280 | 119,516 | 14,600 | 67,154 | |||||
Investments | 13,633,989 | 13,633,989 | |||||||
Cash and cash equivalents | 466,450 | 466,450 | |||||||
Restricted cash | 105,936 | 105,936 | 150,432 | ||||||
Other assets | 3,714,972 | 3,714,972 | |||||||
Goodwill | 5,092 | 5,092 | |||||||
Assets of consolidated CFEs | 3,359,187 | 3,359,187 | |||||||
Total assets | 21,273,775 | 21,273,775 | 21,824,007 | ||||||
Debt | 14,663,902 | 14,663,902 | |||||||
Other liabilities | 551,537 | 551,537 | |||||||
Liabilities of consolidated CFEs | 2,899,877 | 2,899,877 | |||||||
Total liabilities | 18,115,316 | 18,115,316 | |||||||
Total equity | 3,158,459 | 3,158,459 | |||||||
Noncontrolling interests in equity of consolidated subsidiaries | 40,789 | 40,789 | |||||||
Total Rithm Capital stockholders’ equity | 3,117,670 | 3,117,670 | |||||||
Investments in equity method investees | 66,248 | 66,248 | |||||||
Operating Segments | Investment Portfolio | Consolidated Entity, Excluding Consolidated VIE | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Restricted cash | 94,085 | 94,085 | |||||||
Operating Segments | Investment Portfolio | Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 56,962 | 105,493 | 129,375 | 225,726 | |||||
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 | 59,503 | (23,735) | 50,317 | (128,513) | |||||
Operating Segments | Investment Portfolio | Servicing revenue, net | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 116,465 | 81,758 | 179,692 | 97,213 | |||||
Operating Segments | Investment Portfolio | Interest income | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 235,662 | 206,340 | 460,805 | 376,926 | |||||
Operating Segments | Investment Portfolio | Gain on originated residential mortgage loans, held-for-sale, net | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | (2,030) | 34,266 | (5,441) | 35,313 | |||||
Operating Segments | Investment Portfolio | Other investment portfolio revenues | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 56,500 | 59,209 | 114,848 | 117,353 | |||||
Operating Segments | Investment Portfolio | Asset management revenues | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenues | 0 | 0 | 0 | 0 | |||||
Operating Segments | Mortgage Loans Receivable | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenues | 59,573 | 49,588 | 124,293 | 99,259 | |||||
Interest expense and warehouse line fees | 29,106 | 24,359 | 61,520 | 50,198 | |||||
General and administrative | 6,306 | 4,440 | 11,060 | 8,569 | |||||
Compensation and benefits | 9,113 | 10,355 | 20,416 | 22,457 | |||||
Total operating expenses | 44,525 | 39,154 | 92,996 | 81,224 | |||||
Realized and unrealized gains (losses), net | 18,739 | 17,626 | 43,305 | 16,627 | |||||
Other income (loss), net | (2,116) | (822) | (1,842) | 891 | |||||
Total other income (loss) | 16,623 | 16,804 | 41,463 | 17,518 | |||||
Income (loss) before income taxes | 31,671 | 27,238 | 72,760 | 35,553 | |||||
Income tax expense (benefit) | 1,952 | (981) | 1,619 | (3,075) | |||||
Net income (loss) | 29,719 | 28,219 | 71,141 | 38,628 | |||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | 0 | |||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | |||||
Net income (loss) attributable to common stockholders - basic | 29,719 | 28,219 | 71,141 | 38,628 | |||||
Net income (loss) attributable to common stockholders - diluted | 29,719 | 28,219 | 71,141 | 38,628 | |||||
Investments | 2,049,266 | 2,049,266 | |||||||
Cash and cash equivalents | 48,894 | 48,894 | |||||||
Restricted cash | 40,094 | 40,094 | 37,805 | ||||||
Other assets | 107,794 | 107,794 | |||||||
Goodwill | 55,731 | 55,731 | |||||||
Assets of consolidated CFEs | 519,604 | 519,604 | |||||||
Total assets | 2,817,309 | 2,817,309 | 2,498,132 | ||||||
Debt | 1,611,055 | 1,611,055 | |||||||
Other liabilities | 21,963 | 21,963 | |||||||
Liabilities of consolidated CFEs | 452,230 | 452,230 | |||||||
Total liabilities | 2,085,248 | 2,085,248 | |||||||
Total equity | 732,061 | 732,061 | |||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | |||||||
Total Rithm Capital stockholders’ equity | 732,061 | 732,061 | |||||||
Investments in equity method investees | 0 | 0 | |||||||
Operating Segments | Mortgage Loans Receivable | Consolidated Entity, Excluding Consolidated VIE | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Restricted cash | 36,020 | 36,020 | |||||||
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 | 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 | 0 | 0 | |||||
Operating Segments | Mortgage Loans Receivable | Servicing revenue, net | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 0 | 0 | 0 | 0 | |||||
Operating Segments | Mortgage Loans Receivable | Interest income | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 59,573 | 49,588 | 124,293 | 99,259 | |||||
Operating Segments | Mortgage Loans Receivable | Gain on originated residential mortgage loans, held-for-sale, net | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 0 | 0 | 0 | 0 | |||||
Operating Segments | Mortgage Loans Receivable | Other investment portfolio revenues | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 0 | 0 | 0 | 0 | |||||
Operating Segments | Mortgage Loans Receivable | Asset management revenues | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenues | 0 | 0 | 0 | 0 | |||||
Operating Segments | Asset Management | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenues | 114,404 | 0 | 190,264 | 0 | |||||
Interest expense and warehouse line fees | 8,333 | 0 | 15,954 | 0 | |||||
General and administrative | 31,440 | 0 | 63,375 | 0 | |||||
Compensation and benefits | 51,982 | 0 | 115,094 | 0 | |||||
Total operating expenses | 91,755 | 0 | 194,423 | 0 | |||||
Realized and unrealized gains (losses), net | 8,467 | 0 | 1,625 | 0 | |||||
Other income (loss), net | 2,675 | 0 | 6,644 | 0 | |||||
Total other income (loss) | 11,142 | 0 | 8,269 | 0 | |||||
Income (loss) before income taxes | 33,791 | 4,110 | 0 | ||||||
Income tax expense (benefit) | 7,827 | 0 | 4,123 | 0 | |||||
Net income (loss) | 25,964 | 0 | (13) | 0 | |||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 835 | 0 | 2,195 | 0 | |||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | |||||
Net income (loss) attributable to common stockholders - basic | 25,129 | 0 | (2,208) | 0 | |||||
Net income (loss) attributable to common stockholders - diluted | 25,129 | 0 | (2,208) | 0 | |||||
Investments | 0 | 0 | |||||||
Cash and cash equivalents | 105,895 | 105,895 | |||||||
Restricted cash | 23,423 | 23,423 | 26,169 | ||||||
Other assets | 1,117,622 | 1,117,622 | |||||||
Goodwill | 46,658 | 46,658 | |||||||
Assets of consolidated CFEs | 354,012 | 354,012 | |||||||
Total assets | 1,637,511 | 1,637,511 | 1,694,954 | ||||||
Debt | 439,520 | 439,520 | |||||||
Other liabilities | 234,000 | 234,000 | |||||||
Liabilities of consolidated CFEs | 223,726 | 223,726 | |||||||
Total liabilities | 897,246 | 897,246 | |||||||
Noncontrolling interests in equity of consolidated subsidiaries | 44,383 | 44,383 | |||||||
Total Rithm Capital stockholders’ equity | 695,882 | 695,882 | |||||||
Investments in equity method investees | 113,355 | 113,355 | |||||||
Operating Segments | Asset Management | Consolidated Entity, Excluding Consolidated VIE | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Restricted cash | 13,324 | 13,324 | |||||||
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 | 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 | 0 | 0 | |||||
Operating Segments | Asset Management | Servicing revenue, net | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 0 | 0 | 0 | 0 | |||||
Operating Segments | Asset Management | Interest income | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 4,971 | 0 | 4,971 | 0 | |||||
Operating Segments | Asset Management | Gain on originated residential mortgage loans, held-for-sale, net | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 0 | 0 | 0 | 0 | |||||
Operating Segments | Asset Management | Other investment portfolio revenues | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 0 | 0 | 0 | 0 | |||||
Operating Segments | Asset Management | Asset management revenues | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenues | 109,433 | 0 | 185,293 | 0 | |||||
Operating Segments | Corporate | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenues | 2 | 0 | 4 | 0 | |||||
Interest expense and warehouse line fees | 21,697 | 8,572 | 32,241 | 17,969 | |||||
General and administrative | 17,616 | 16,316 | 27,560 | 24,141 | |||||
Compensation and benefits | 21,022 | 9,688 | 23,836 | 18,816 | |||||
Total operating expenses | 60,335 | 34,576 | 83,637 | 60,926 | |||||
Realized and unrealized gains (losses), net | 0 | 0 | 0 | 0 | |||||
Other income (loss), net | 0 | (10,686) | 37 | (18,868) | |||||
Total other income (loss) | 0 | (10,686) | 37 | (18,868) | |||||
Income (loss) before income taxes | (60,333) | (45,262) | (83,596) | (79,794) | |||||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | |||||
Net income (loss) | (60,333) | (45,262) | (83,596) | (79,794) | |||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | 0 | |||||
Dividends on preferred stock | 22,395 | 22,395 | 44,790 | 44,790 | |||||
Net income (loss) attributable to common stockholders - basic | (82,728) | (67,657) | (128,386) | (124,584) | |||||
Net income (loss) attributable to common stockholders - diluted | (82,728) | (67,657) | (128,386) | (124,584) | |||||
Investments | 0 | 0 | |||||||
Cash and cash equivalents | 2,648 | 2,648 | |||||||
Other assets | 23,504 | 23,504 | |||||||
Goodwill | 0 | 0 | |||||||
Assets of consolidated CFEs | 0 | 0 | |||||||
Total assets | 26,152 | 26,152 | $ 28,365 | ||||||
Debt | 1,031,690 | 1,031,690 | |||||||
Other liabilities | 211,929 | 211,929 | |||||||
Liabilities of consolidated CFEs | 0 | 0 | |||||||
Total liabilities | 1,243,619 | 1,243,619 | |||||||
Total equity | (1,217,467) | (1,217,467) | |||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | |||||||
Total Rithm Capital stockholders’ equity | (1,217,467) | (1,217,467) | |||||||
Investments in equity method investees | 0 | 0 | |||||||
Operating Segments | Corporate | Consolidated Entity, Excluding Consolidated VIE | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Restricted cash | 0 | 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 | 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 | 0 | 0 | |||||
Operating Segments | Corporate | Servicing revenue, net | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 0 | 0 | 0 | 0 | |||||
Operating Segments | Corporate | Interest income | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 2 | 0 | 4 | 0 | |||||
Operating Segments | Corporate | Gain on originated residential mortgage loans, held-for-sale, net | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 0 | 0 | 0 | 0 | |||||
Operating Segments | Corporate | Other investment portfolio revenues | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 0 | 0 | 0 | 0 | |||||
Operating Segments | Corporate | Asset management revenues | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenues | $ 0 | $ 0 | $ 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 June 30, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.1 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.2 billion and $4.7 billion, respectively. See Note 20 for further details. |
MORTGAGE SERVICING RIGHTS AND_3
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Activity Related to MSRs and MSR Financing Receivables (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Activity related to carrying value of investments in mortgage servicing rights [Roll Forward] | |
Beginning balance | $ 8,405,938 |
Purchases, net | 0 |
Transfers | 0 |
Acquisition | 697,494 |
Originations | 580,244 |
Sales | 2,404 |
Realization of cash flows(A) | (284,189) |
Change in valuation inputs and assumptions | 291,440 |
Ending balance | $ 9,693,331 |
MORTGAGE SERVICING RIGHTS AND_4
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Components of Servicing Revenue, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 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) | $ 291,440 | |||
Excess spread financing | 2,200 | |||
Change in valuation and assumptions, excess spread financing | 6,800 | |||
MSRs | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ 453,989 | $ 432,750 | 884,103 | $ 871,800 |
Ancillary and other fees | 44,989 | 32,597 | 84,766 | 63,204 |
Servicing fee revenue, net and fees | 498,978 | 465,347 | 968,869 | 935,004 |
Realization of cash flows | (165,138) | (139,410) | (281,977) | (245,101) |
Change in valuation inputs and assumptions, net of realized gains (losses) | 97,240 | 161,442 | 298,254 | 124,829 |
Servicing revenue, net | $ 431,080 | $ 487,379 | $ 985,146 | $ 814,732 |
MORTGAGE SERVICING RIGHTS AND_5
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of MSRs and MSR Financing Receivables by Type (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | |
Servicing Asset at Amortized Cost [Line Items] | |||
Weighted Average Life (Years) | 4 years | ||
Carrying value | $ 9,693,331 | $ 8,405,938 | |
Residential mortgage loans subject to repurchase | 1,905,625 | $ 1,782,998 | $ 1,296,097 |
Mortgage Servicing Rights and Mortgage Servicing Rights Financing Receivable | |||
Servicing Asset at Amortized Cost [Line Items] | |||
UPB of Underlying Residential Mortgage Loans | $ 587,043,388 | ||
Weighted Average Life (Years) | 6 years 4 months 24 days | ||
Carrying value | $ 9,693,331 | ||
MSRs | Weighted Average | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Discount rate | 8.90% | ||
MSRs | Minimum | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Discount rate | 8.70% | ||
MSRs | Maximum | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Discount rate | 10.30% | ||
Agency | MSRs | |||
Servicing Asset at Amortized Cost [Line Items] | |||
UPB of Underlying Residential Mortgage Loans | $ 381,516,738 | ||
Weighted Average Life (Years) | 6 years 7 months 6 days | ||
Carrying value | $ 6,079,335 | ||
Non-Agency | MSRs | |||
Servicing Asset at Amortized Cost [Line Items] | |||
UPB of Underlying Residential Mortgage Loans | $ 72,106,898 | ||
Weighted Average Life (Years) | 5 years 4 months 24 days | ||
Carrying value | $ 885,053 | ||
Ginnie Mae | MSRs | |||
Servicing Asset at Amortized Cost [Line Items] | |||
UPB of Underlying Residential Mortgage Loans | $ 133,419,752 | ||
Weighted Average Life (Years) | 6 years 3 months 18 days | ||
Carrying value | $ 2,728,943 |
MORTGAGE SERVICING RIGHTS AND_6
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Jan. 31, 2018 | Jul. 31, 2017 | ||
Schedule of MSRs [Line Items] | ||||||
Residential mortgage loans subject to repurchase | $ 1,905,625 | $ 1,296,097 | $ 1,782,998 | |||
Residential mortgage loans, HFS | [1] | 3,910,823 | 2,540,742 | |||
Reserve for non-recovery advances | $ 99,540 | $ 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 | $ 213,700,000 | 95,600,000 | ||||
Subservicing revenue | 89,100 | $ 69,100 | ||||
Onity Group Inc. | Rithm Capital | ||||||
Schedule of MSRs [Line Items] | ||||||
Unpaid principal balance of underlying loans, not yet transferred | $ 10,900,000 | |||||
PHH Mortgage Corporation | ||||||
Schedule of MSRs [Line Items] | ||||||
Subservicer percent of UPB | 7.40% | |||||
Valon | ||||||
Schedule of MSRs [Line Items] | ||||||
Subservicer percent of UPB | 4.30% | |||||
Newrez and Caliber | ||||||
Schedule of MSRs [Line Items] | ||||||
Subservicer percent of UPB | 88.30% | |||||
Ginnie Mae Loans | ||||||
Schedule of MSRs [Line Items] | ||||||
Residential mortgage loans, HFS | $ 400,000 | |||||
Onity Group Inc. | ||||||
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 June 30, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.1 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.2 billion and $4.7 billion, respectively. See Note 20 for further details. |
MORTGAGE SERVICING RIGHTS AND_7
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Geographic Distribution of the Underlying Residential Mortgage Loans of the MSRs and MSR Financing Receivables (Details) - MSRs - Mortgage Loans | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 100% | 100% |
California | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 16.70% | 17.10% |
Florida | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 8.40% | 8.60% |
Texas | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 6.50% | 6.20% |
New York | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 5.80% | 6% |
Washington | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 5.30% | 5.80% |
New Jersey | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.10% | 4.30% |
Virginia | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.60% | 3.60% |
Maryland | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.40% | 3.40% |
Illinois | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.30% | 3.30% |
Georgia | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.10% | 3% |
Other US | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 39.80% | 38.70% |
MORTGAGE SERVICING RIGHTS AND_8
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Type of Advances Included in the Servicer Advances Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Transfers and Servicing of Financial Assets [Abstract] | ||
Principal and interest advances | $ 624,563 | $ 616,801 |
Escrow advances (taxes and insurance advances) | 1,358,320 | 1,442,697 |
Foreclosure advances | 891,268 | 767,171 |
Gross advance balance | 2,874,151 | 2,826,669 |
Reserves, impairment, unamortized discount, net of recovery accruals | (99,641) | (66,419) |
Total servicer advances receivable | 2,774,510 | 2,760,250 |
Servicer advances receivable related to agency MSRs | 550,800 | 585,000 |
Servicer advances receivable related to Ginnie Mae MSRS, recoverable from Ginnie Mae | $ 367,800 | $ 405,600 |
MORTGAGE SERVICING RIGHTS AND_9
MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Servicer Advances Provision Activity (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Servicer Advances Reserve [Roll Forward] | |
Beginning balance | $ 93,681 |
Provision | 20,652 |
Write-offs | (14,793) |
Ending balance | $ 99,540 |
GOVERNMENT AND GOVERNMENT-BAC_3
GOVERNMENT AND GOVERNMENT-BACKED SECURITIES - Schedule of Agency and Treasury Securities by Designation (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) security | Dec. 31, 2023 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Weighted Average Life (Years) | 4 years | |
Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 9,561,293 | |
Gross unrealized gains | 3,291 | |
Gross unrealized losses | (66,040) | |
Carrying value | $ 9,300,237 | $ 8,533,130 |
Number of Securities | security | 47 | |
Weighted Average Coupon | 5.60% | |
Weighted average yield | 8% | |
Weighted Average Life (Years) | 8 years 7 months 6 days | |
Securities designated as available for sale (“AFS”): | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 71,981 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Carrying value | $ 62,998 | 65,496 |
Number of Securities | security | 1 | |
Weighted Average Coupon | 3.50% | |
Weighted average yield | 3.50% | |
Weighted Average Life (Years) | 10 years 8 months 12 days | |
Securities measured at fair value through net income: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 9,489,312 | |
Gross unrealized gains | 3,291 | |
Gross unrealized losses | (66,040) | |
Carrying value | $ 9,237,239 | $ 8,467,634 |
Number of Securities | security | 46 | |
Weighted Average Coupon | 5.10% | |
Weighted average yield | 5.20% | |
Weighted Average Life (Years) | 8 years 8 months 12 days |
GOVERNMENT AND GOVERNMENT-BAC_4
GOVERNMENT AND GOVERNMENT-BACKED SECURITIES - Schedule of Agency and Treasury Securities, Held to Maturity (Details) | 6 Months Ended | |
Jun. 30, 2024 USD ($) security | Dec. 31, 2023 USD ($) | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Weighted Average Life (Years) | 4 years | |
Government 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 | 24,860,000 | $ 24,553,000 |
Fair Value | 24,861,000 | |
Unrecognized Gains/(Losses) | $ 1,000 | |
Number of Securities | security | 2 | |
Weighted Average Yield | 5.40% | |
Weighted Average Life (Years) | 1 month 6 days |
GOVERNMENT AND GOVERNMENT-BAC_5
GOVERNMENT AND GOVERNMENT-BACKED SECURITIES - Schedule of Purchases and Sales of Agency and Treasury Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Treasury | ||||
Purchases | ||||
Face | $ 25 | $ 1,000 | $ 4,825 | $ 1,000 |
Purchase price | 24.7 | 973.8 | 4,798.6 | 973.8 |
Sales | ||||
Face | 3,000 | 0 | 3,000 | 0 |
Amortized cost | 2,976.3 | 0 | 2,976.3 | 0 |
Sale price | 2,957.5 | 0 | 2,957.5 | 0 |
Realized gain (loss) | (18.8) | 0 | (18.8) | 0 |
Agency | ||||
Purchases | ||||
Face | 0 | 0 | 1,287 | 2,162.4 |
Purchase price | 0 | 0 | 1,255.9 | 2,154.4 |
Sales | ||||
Face | 0 | 0 | 0 | 1,462.4 |
Amortized cost | 0 | 0 | 0 | 1,442.8 |
Sale price | 0 | 0 | 0 | 1,395.9 |
Realized gain (loss) | $ 0 | $ 0 | $ 0 | $ (46.9) |
RESIDENTIAL MORTGAGE LOANS - Sc
RESIDENTIAL MORTGAGE LOANS - Schedule of Residential Mortgage Loans Outstanding by Loan Type (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 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) | 4 years | |
Investments of Consolidated CFEs | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 3,577,247 | |
Carrying Value | $ 3,347,246 | $ 3,038,587 |
Loan Count | loan | 10,411 | |
Weighted Average Yield | 5.50% | |
Weighted Average Life (Years) | 25 years 10 months 24 days | |
Residential mortgage loans, HFI, at fair value | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 421,507 | |
Carrying Value | $ 368,866 | 379,044 |
Loan Count | loan | 7,823 | |
Weighted Average Yield | 8.50% | |
Weighted Average Life (Years) | 5 years 2 months 12 days | |
Total residential mortgage loans, HFS | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 83,301 | |
Carrying Value | $ 72,894 | 78,877 |
Loan Count | loan | 2,037 | |
Weighted Average Yield | 7.50% | |
Weighted Average Life (Years) | 5 years 1 month 6 days | |
Acquired performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 61,427 | |
Carrying Value | $ 53,951 | 57,038 |
Loan Count | loan | 1,790 | |
Weighted Average Yield | 8% | |
Weighted Average Life (Years) | 5 years 6 months | |
Acquired performing loans | Ginnie Mae | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance of underlying loans | $ 217,200 | |
Acquired non-performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | 21,874 | |
Carrying Value | $ 18,943 | 21,839 |
Loan Count | loan | 247 | |
Weighted Average Yield | 6.10% | |
Weighted Average Life (Years) | 3 years 10 months 24 days | |
Acquired non-performing loans | Ginnie Mae | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance of underlying loans | $ 192,600 | |
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 | 3,807,723 | |
Carrying Value | $ 3,837,929 | 2,461,865 |
Loan Count | loan | 14,043 | |
Weighted Average Yield | 6.70% | |
Weighted Average Life (Years) | 24 years 9 months 18 days | |
Acquired performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 850,561 | |
Carrying Value | $ 834,383 | 400,603 |
Loan Count | loan | 3,041 | |
Weighted Average Yield | 5.80% | |
Weighted Average Life (Years) | 11 years 2 months 12 days | |
Acquired non-performing loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 233,580 | |
Carrying Value | $ 214,071 | 204,950 |
Loan Count | loan | 1,130 | |
Weighted Average Yield | 3.70% | |
Weighted Average Life (Years) | 23 years | |
Originated loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 2,723,582 | |
Carrying Value | $ 2,789,475 | $ 1,856,312 |
Loan Count | loan | 9,872 | |
Weighted Average Yield | 7.20% | |
Weighted Average Life (Years) | 29 years 2 months 12 days |
RESIDENTIAL MORTGAGE LOANS - _2
RESIDENTIAL MORTGAGE LOANS - Schedule of Geographic Distribution of the Residential Mortgage Loans (Details) - Residential Mortgage Loans | Jun. 30, 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 | 11.20% | 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 | 9.20% | 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 | 8.60% | 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 | 5.80% | 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 | 4.30% | 4.90% |
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 | 3.70% | 3.90% |
Maryland | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.40% | 3.30% |
ILLINOIS | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.30% | 3.50% |
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 | 3.30% | 3.20% |
Virginia | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.10% | 3.60% |
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 | 44.10% | 42.50% |
RESIDENTIAL MORTGAGE LOANS - _3
RESIDENTIAL MORTGAGE LOANS - Schedule of Difference Between Aggregate UPB and Aggregate Carrying Value of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 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 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 340,323 | 313,122 |
Carrying Value | 304,967 | 281,556 |
Carrying Value Over (Under) UPB | $ (35,356) | $ (31,566) |
RESIDENTIAL MORTGAGE LOANS - _4
RESIDENTIAL MORTGAGE LOANS - Schedule of Activity for Residential Mortgage Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Loans HFS, beginning balance | [1] | $ 2,540,742 | |
Transfer of loans to REO | (8,841) | $ (14,662) | |
Impairment (loss) reversal | (1,268) | $ (3,009) | |
Loans HFS, ending balance | [1] | 3,910,823 | |
Residential Portfolio Segment | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Loans HFS, beginning balance | 2,919,786 | ||
Originations | 25,518,069 | ||
Sales | (24,568,303) | ||
Purchases/additional fundings | 922,076 | ||
Proceeds from repayments | (71,271) | ||
Transfer of loans (to) from other assets | (465,742) | ||
Transfer of loans to REO | (5,690) | ||
Transfers of loans to held-for-sale | (52) | ||
Transfer of loans from held-for-investment | 52 | ||
Impairment (loss) reversal | 3,339 | ||
Changes in instrument-specific credit risk | 24,098 | ||
Other factors | 3,327 | ||
Loans HFS, ending balance | 4,279,689 | ||
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] | |||
Loans HFI, beginning balance | 379,044 | ||
Originations | 0 | ||
Sales | 0 | ||
Purchases/additional fundings | 0 | ||
Proceeds from repayments | (23,313) | ||
Transfer of loans (to) from other assets | 0 | ||
Transfer of loans to REO | (1,943) | ||
Transfers of loans to held-for-sale | (52) | ||
Transfer of loans from held-for-investment | 0 | ||
Impairment (loss) reversal | 0 | ||
Changes in instrument-specific credit risk | 13,632 | ||
Other factors | 1,498 | ||
Loans HFI, ending balance | 368,866 | ||
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] | |||
Loans HFS, beginning balance | 78,877 | ||
Originations | 0 | ||
Sales | 0 | ||
Purchases/additional fundings | 0 | ||
Proceeds from repayments | (5,518) | ||
Transfer of loans (to) from other assets | (2,479) | ||
Transfer of loans to REO | (1,325) | ||
Transfers of loans to held-for-sale | 0 | ||
Transfer of loans from held-for-investment | 0 | ||
Impairment (loss) reversal | 3,339 | ||
Changes in instrument-specific credit risk | 0 | ||
Other factors | 0 | ||
Loans HFS, ending balance | 72,894 | ||
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] | |||
Loans HFS, beginning balance | 2,461,865 | ||
Originations | 25,518,069 | ||
Sales | (24,568,303) | ||
Purchases/additional fundings | 922,076 | ||
Proceeds from repayments | (42,440) | ||
Transfer of loans (to) from other assets | (463,263) | ||
Transfer of loans to REO | (2,422) | ||
Transfers of loans to held-for-sale | 0 | ||
Transfer of loans from held-for-investment | 52 | ||
Impairment (loss) reversal | 0 | ||
Changes in instrument-specific credit risk | 10,466 | ||
Other factors | 1,829 | ||
Loans HFS, ending balance | $ 3,837,929 | ||
[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 June 30, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.1 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.2 billion and $4.7 billion, respectively. See Note 20 for further details. |
RESIDENTIAL MORTGAGE LOANS - _5
RESIDENTIAL MORTGAGE LOANS - Schedule of Net Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest income: | ||||
Loans HFI, at fair value | $ 7,579 | $ 9,214 | $ 15,436 | $ 18,723 |
Total interest income | 54,502 | 52,843 | 99,236 | 101,142 |
Interest expense: | ||||
Loans HFI, at fair value | 4,032 | 4,849 | 8,256 | 9,519 |
Total interest expense | 57,367 | 48,618 | 99,545 | 96,911 |
Net interest income | (2,865) | 4,225 | (309) | 4,231 |
Loans HFS, at lower of cost or fair value | ||||
Interest income: | ||||
Loans HFS | 1,279 | 1,884 | 2,140 | 3,388 |
Interest expense: | ||||
Loans HFS | 1,007 | 982 | 1,723 | 1,889 |
Loans HFS, at fair value | ||||
Interest income: | ||||
Loans HFS | 45,644 | 41,745 | 81,660 | 79,031 |
Interest expense: | ||||
Loans HFS | $ 52,328 | $ 42,787 | $ 89,566 | $ 85,503 |
RESIDENTIAL MORTGAGE LOANS - _6
RESIDENTIAL MORTGAGE LOANS - Schedule of Components of Gain on Originated Residential Mortgage Loans, HFS, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Long Lived Assets Held-for-sale [Line Items] | ||||
Gain (loss) on residential mortgage loans originated and sold, net | $ (217,515) | $ (93,059) | $ (341,629) | $ (127,373) |
Gain (loss) on settlement of residential mortgage loan origination derivative instruments | 10,077 | (11,483) | (5,447) | (1,579) |
MSRs retained on transfer of residential mortgage loans | 364,305 | 202,303 | 580,244 | 342,816 |
Other | 5,114 | 2,302 | 11,608 | (3,141) |
Realized gain on sale of originated residential mortgage loans, net | 161,981 | 100,063 | 244,776 | 210,723 |
Gain on originated residential mortgage loans, HFS, net | 153,741 | 178,584 | 296,199 | 287,852 |
Loan origination fees and direct loan origination costs | 233,800 | 94,000 | 411,500 | 162,900 |
Change in fair value of interest rate lock commitments | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Change in fair value of derivative instruments | (14,817) | (19,898) | (7,332) | 6,342 |
Change in fair value of derivative instruments | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Change in fair value of derivative instruments | 15,484 | 70,528 | 53,394 | 11,298 |
Change in fair value of residential mortgage loans | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Change in fair value of residential mortgage loans | $ (8,907) | $ 27,891 | $ 5,361 | $ 59,489 |
CONSUMER LOANS - Narrative (Det
CONSUMER LOANS - Narrative (Details) - SpringCastle $ in Millions | Jun. 28, 2024 USD ($) |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 46.50% |
Purchases | $ 22 |
CONSUMER LOANS - Schedule of Co
CONSUMER LOANS - Schedule of Consumer Loan Portfolio Measured at Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||
Weighted Average Expected Life (Years) | 4 years | |
Consumer Portfolio Segment | ||
Schedule of Equity Method Investments [Line Items] | ||
Unpaid principal balance of underlying loans | $ 1,011,653 | $ 1,308,774 |
Carrying Value | $ 946,367 | $ 1,274,005 |
Weighted Average Coupon | 12.50% | 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 of underlying loans | $ 231,945 | $ 260,102 |
Carrying Value | $ 244,578 | $ 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 of underlying loans | $ 779,708 | $ 1,048,672 |
Carrying Value | $ 701,789 | $ 988,373 |
Weighted Average Coupon | 10.90% | 10.50% |
Weighted Average Expected Life (Years) | 10 months 24 days | 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 | Jun. 30, 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 | 227,741 | 255,441 |
Carrying value | 240,197 | 280,577 |
Carrying Value Over (Under) UPB | 12,456 | 25,136 |
Consumer Portfolio Segment | Current | Marcus | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 690,063 | 1,014,404 |
Carrying value | 621,103 | 956,076 |
Carrying Value Over (Under) UPB | (68,960) | (58,328) |
Consumer Portfolio Segment | 90+ | SpringCastle | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 4,204 | 4,661 |
Carrying value | 4,381 | 5,055 |
Carrying Value Over (Under) UPB | 177 | 394 |
Consumer Portfolio Segment | 90+ | Marcus | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 89,645 | 34,268 |
Carrying value | 80,686 | 32,297 |
Carrying Value Over (Under) UPB | (8,959) | (1,971) |
Consumer Portfolio Segment | Past Due | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 1,011,653 | 1,308,774 |
Carrying value | 946,367 | 1,274,005 |
Carrying Value Over (Under) UPB | (65,286) | (34,769) |
Consumer Portfolio Segment | Past Due | SpringCastle | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 231,945 | 260,102 |
Carrying value | 244,578 | 285,632 |
Carrying Value Over (Under) UPB | 12,633 | 25,530 |
Consumer Portfolio Segment | Past Due | Marcus | Total Rithm Capital Stockholders’ Equity | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB | 779,708 | 1,048,672 |
Carrying value | 701,789 | 988,373 |
Carrying Value Over (Under) UPB | $ (77,919) | $ (60,299) |
CONSUMER LOANS - Schedule of Ac
CONSUMER LOANS - Schedule of Activity for Consumer Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Loans Receivable [Roll Forward] | ||
Proceeds from repayments | $ (24,022) | $ (21,364) |
Accretion of loan discount and premium amortization, net | 45,137 | $ 29,892 |
Consumer Portfolio Segment | Performing loans | ||
Loans Receivable [Roll Forward] | ||
Beginning balance | 1,274,005 | |
Purchases | 0 | |
Additional fundings | 10,098 | |
Proceeds from repayments | (302,325) | |
Accretion of loan discount and premium amortization, net | 15,978 | |
Changes in instrument-specific credit risk | (31,634) | |
Other factors | (19,755) | |
Ending balance | $ 946,367 |
SINGLE-FAMILY RENTAL PROPERTI_3
SINGLE-FAMILY RENTAL PROPERTIES - Narrative (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 USD ($) property | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Real Estate [Line Items] | |||
Capitalized acquisition costs | $ 7,300 | $ 7,500 | |
SFR Properties HFS | |||
Real Estate [Line Items] | |||
Transfer to HFS | property | 10 | ||
Accumulated depreciation | $ 152 | ||
Single Family | |||
Real Estate [Line Items] | |||
Transfer to HFS | property | 0 | ||
Accumulated depreciation | $ 15,047 | $ 13,900 | |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Real Estate [Line Items] | ||
Land | $ 189,694 | $ 183,359 |
Building | 758,777 | 733,437 |
Capital improvements | 145,465 | 138,869 |
Total gross investment in SFR properties | 1,093,936 | 1,055,665 |
Accumulated depreciation | (68,612) | (53,737) |
Investment in SFR properties, net | $ 1,025,324 | $ 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 | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | $ 1,001,928 | |
Ending balance | 1,025,324 | |
SFR Properties HFI | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 1,000,357 | |
Acquisitions and capital improvements | 41,955 | |
Transfers to HFS | (3,270) | |
Dispositions | (1,140) | |
Accumulated depreciation | (14,895) | |
Ending balance | 1,023,007 | |
SFR Properties HFS | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 1,571 | |
Acquisitions and capital improvements | 0 | |
Transfers to HFS | 3,270 | |
Dispositions | (2,372) | |
Accumulated depreciation | (152) | |
Ending balance | 2,317 | |
Single Family | ||
Real Estate Investment Property, Net [Roll Forward] | ||
Beginning balance | 1,001,928 | |
Acquisitions and capital improvements | 41,955 | |
Transfers to HFS | 0 | |
Dispositions | (3,512) | |
Accumulated depreciation | (15,047) | $ (13,900) |
Ending balance | $ 1,025,324 |
SINGLE-FAMILY RENTAL PROPERTI_6
SINGLE-FAMILY RENTAL PROPERTIES - Schedule of Future Minimum Rental Revenues Under Existing Leases on SFR Properties (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Real Estate [Line Items] | |
Total | $ 20,900 |
Single Family | |
Real Estate [Line Items] | |
Remainder of 2024 | 32,296 |
2025 and thereafter | 20,171 |
Total | $ 52,467 |
SINGLE-FAMILY RENTAL PROPERTI_7
SINGLE-FAMILY RENTAL PROPERTIES - Schedule of Activity of SFR Portfolio by Units (Details) | 6 Months Ended |
Jun. 30, 2024 property | |
SFR Properties HFI | |
Real Estate Investment Property, Net [Roll Forward] | |
Beginning balance | 3,882 |
Acquisition of SFR units | 132 |
Transfer to HFS | (10) |
Disposition of SFR units | (4) |
Ending balance | 4,000 |
SFR Properties HFS | |
Real Estate Investment Property, Net [Roll Forward] | |
Beginning balance | 6 |
Acquisition of SFR units | 0 |
Transfer to HFS | 10 |
Disposition of SFR units | (8) |
Ending balance | 8 |
Single Family | |
Real Estate Investment Property, Net [Roll Forward] | |
Beginning balance | 3,888 |
Acquisition of SFR units | 132 |
Transfer to HFS | 0 |
Disposition of SFR units | (12) |
Ending balance | 4,008 |
MORTGAGE LOANS RECEIVABLE - Nar
MORTGAGE LOANS RECEIVABLE - Narrative (Details) $ in Millions | Aug. 24, 2023 USD ($) |
Bridge | Mortgage Loans Receivable | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing receivable, before allowance for credit loss, acquired | $ 148.4 |
MORTGAGE LOANS RECEIVABLE - Sch
MORTGAGE LOANS RECEIVABLE - Schedule of Mortgage Loans Receivable Held by Loan Type (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) loan | Dec. 31, 2023 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Carrying Value | $ 394,091 | $ 429,550 |
Mortgage Loans Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Carrying Value | $ 2,541,369 | |
% of Portfolio | 100% | |
Loan Count | loan | 1,397 | |
% of Portfolio | 100% | |
Weighted Average Yield | 10.60% | |
Weighted Average Original Life (Months) | 20 years 4 months 24 days | |
Mortgage Loans Receivable | Consolidated Entity, Excluding Consolidated VIE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Carrying Value | $ 2,049,266 | $ 1,879,319 |
Mortgage Loans Receivable | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Carrying Value | 492,103 | |
Mortgage Loans Receivable | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Carrying Value | $ 1,097,543 | |
% of Portfolio | 43.30% | |
Loan Count | loan | 396 | |
% of Portfolio | 28.30% | |
Weighted Average Yield | 11.20% | |
Weighted Average Original Life (Months) | 18 years 3 months 18 days | |
Weighted average committed loan balance to value, LTC | 72.80% | |
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] | ||
Total Carrying Value | $ 886,359 | |
Mortgage Loans Receivable | Construction | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Carrying Value | 211,184 | |
Mortgage Loans Receivable | Bridge | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Carrying Value | $ 1,118,377 | |
% of Portfolio | 43.80% | |
Loan Count | loan | 575 | |
% of Portfolio | 41.20% | |
Weighted Average Yield | 10.10% | |
Weighted Average Original Life (Months) | 24 years 7 months 6 days | |
Weighted average committed loan balance to value | 67.70% | |
Mortgage Loans Receivable | Bridge | Consolidated Entity, Excluding Consolidated VIE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Carrying Value | $ 898,306 | |
Mortgage Loans Receivable | Bridge | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Carrying Value | 220,071 | |
Mortgage Loans Receivable | Renovation | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Carrying Value | $ 325,449 | |
% of Portfolio | 12.90% | |
Loan Count | loan | 426 | |
% of Portfolio | 30.50% | |
Weighted Average Yield | 10.50% | |
Weighted Average Original Life (Months) | 12 years 6 months | |
Weighted average committed loan balance to value, LTC | 81.70% | |
Weighted average committed loan balance to value, LTARV | 67.40% | |
Mortgage Loans Receivable | Renovation | Consolidated Entity, Excluding Consolidated VIE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Carrying Value | $ 264,601 | |
Mortgage Loans Receivable | Renovation | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Carrying Value | $ 60,848 |
MORTGAGE LOANS RECEIVABLE - S_2
MORTGAGE LOANS RECEIVABLE - Schedule of Activity for Mortgage Loans Receivable (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable [Roll Forward] | ||
Beginning balance | $ 429,550 | |
Paydowns and payoffs | (37,670) | |
Transfer of loans to REO | (8,841) | $ (14,662) |
Ending balance | 394,091 | |
Mortgage Loans Receivable | ||
Financing Receivable [Roll Forward] | ||
Ending balance | 2,541,369 | |
Mortgage Loans Receivable | Consolidated Entity, Excluding Consolidated VIE | ||
Financing Receivable [Roll Forward] | ||
Beginning balance | 1,879,319 | |
Initial loan advances | 931,574 | |
Construction holdbacks and draws | 392,874 | |
Paydowns and payoffs | (798,720) | |
Fair value adjustments | 17,418 | |
Purchased loans discount amortization | 871 | |
Transfer of loans to REO | (4,311) | |
Transfers from (to) assets of consolidated CFEs | (369,759) | |
Ending balance | $ 2,049,266 |
MORTGAGE LOANS RECEIVABLE - S_3
MORTGAGE LOANS RECEIVABLE - Schedule of Difference Between Aggregate UPB and Aggregate Carrying Value of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 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 | 1,991,233 | 1,838,935 |
Carrying Value | 2,009,083 | 1,837,513 |
Carrying Value Over (Under) UPB | 17,850 | (1,422) |
Mortgage Loans Receivable | 90+ | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
UPB | 45,996 | 41,869 |
Carrying Value | 40,183 | 41,806 |
Carrying Value Over (Under) UPB | $ (5,813) | $ (63) |
MORTGAGE LOANS RECEIVABLE - S_4
MORTGAGE LOANS RECEIVABLE - Schedule of Geographic Distribution of the Underlying Mortgage Loans Receivable (Details) - Mortgage Loans Receivable - Geographic Concentration Risk - Loan Origination Commitments | 6 Months Ended | 12 Months Ended |
Jun. 30, 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 | 45.60% | 47.80% |
Florida | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 8.80% | 7.80% |
Georgia | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 8% | 2.50% |
Washington | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 6.40% | 7.90% |
New York | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 5.70% | 6.70% |
Colorado | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 3.90% | 3.10% |
Arizona | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 3.80% | 4.80% |
Virginia | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 3.60% | 4.10% |
South Carolina | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 2.20% | 0.60% |
Texas | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 2% | 2.70% |
Other US | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Total Loan Commitment | 10% | 12% |
CASH, CASH EQUIVALENTS AND RE_3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Schedule of Reconciliation of Cash, Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Cash and cash equivalents | [1] | $ 1,238,736 | $ 1,287,199 | ||
Restricted cash | 322,979 | 409,896 | |||
Cash, cash equivalents and restricted cash | 1,561,715 | 1,697,095 | $ 1,697,655 | $ 1,629,328 | |
Consolidated Entity, Excluding Consolidated VIE | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Cash and cash equivalents | 1,238,736 | 1,287,199 | |||
Restricted cash | [1] | 296,955 | 378,048 | ||
Variable Interest Entity, Primary Beneficiary | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Cash and cash equivalents | 24,396 | 23,540 | |||
Restricted cash | $ 26,024 | $ 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 June 30, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.1 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.2 billion and $4.7 billion, respectively. See Note 20 for further details. |
CASH, CASH EQUIVALENTS AND RE_4
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Schedule of Reconciliation of Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash | $ 322,979 | $ 409,896 |
Operating Segments | Investment Portfolio | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash | 105,936 | 150,432 |
Operating Segments | Origination and Servicing | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash | 153,526 | 195,490 |
Operating Segments | Mortgage Loans Receivable | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash | 40,094 | 37,805 |
Operating Segments | Asset Management | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash | $ 23,423 | $ 26,169 |
OTHER ASSETS AND LIABILITIES -
OTHER ASSETS AND LIABILITIES - Schedule of Other Assets and Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 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 Other Assets | Total Other Assets | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | Accrued expenses and other liabilities | |
Other Assets | |||
CLOs, at fair value | $ 261,492 | $ 226,486 | |
Deferred tax asset | 283,071 | 279,019 | |
Derivative and hedging assets (Note 17) | 54,357 | 28,080 | |
Equity investments | 244,222 | 173,882 | |
Excess MSRs, at fair value (Note 13) | 395,606 | 271,150 | |
Goodwill | 131,857 | 131,857 | |
Income and fees receivable | 55,378 | 59,134 | |
Intangible assets (Note 15) | 364,942 | 387,920 | |
Loans receivable, at fair value | 29,114 | 31,323 | |
Margin receivable, net | 205,207 | 75,947 | |
Non-Agency RMBS, at fair value | 548,047 | 577,543 | |
Notes receivable, at fair value | 364,977 | 398,227 | |
Operating lease right-of-use assets (Note 16) | 104,983 | 104,207 | |
Prepaid expenses | 68,724 | 62,513 | |
Principal and interest receivable | 154,945 | 168,516 | |
Property and equipment | 37,428 | 40,038 | |
REO | 27,163 | 15,507 | |
Servicer advance investments, at fair value (Note 14) | 357,220 | 376,881 | |
Servicing fee receivables | 162,888 | 156,777 | |
Warrants, at fair value | 11,564 | 16,599 | |
Other assets | 189,929 | 182,881 | |
Total Other Assets | [1] | 4,251,186 | 3,948,852 |
Accrued Expenses and Other Liabilities | |||
Accounts payable | 201,544 | 165,144 | |
Accrued compensation and benefits | 159,470 | 290,464 | |
Deferred tax liability | 950,986 | 801,857 | |
Derivative liabilities (Note 17) | 35,100 | 51,765 | |
Escheat payable | 197,816 | 169,914 | |
Excess spread financing | 116,142 | 0 | |
Interest payable | 186,695 | 166,620 | |
Lease liability (Note 16) | 175,106 | 159,236 | |
Notes receivable financing | 352,683 | 0 | |
Unearned income and fees | 30,284 | 37,468 | |
Other liabilities | 238,902 | 223,293 | |
Accrued expenses and other liabilities | [1] | 2,644,728 | 2,065,761 |
Financing receivable, transfer | 365,000 | ||
Financing receivable subject to repo financing | 323,500 | ||
Proceeds from transfer of financing receivable | 36,800 | ||
Related Party | |||
Other Assets | |||
Other receivables | 38,346 | 32,319 | |
Nonrelated Party | |||
Other Assets | |||
Other receivables | $ 159,726 | $ 152,046 | |
[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 June 30, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.1 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.2 billion and $4.7 billion, respectively. See Note 20 for further details. |
OTHER ASSETS AND LIABILITIES _2
OTHER ASSETS AND LIABILITIES - Schedule of Activity Related to the Carrying Value of Investments in REO (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Real Estate Owned [Roll Forward] | |
Beginning balance | $ 15,507 |
Purchases | 10,541 |
Property received in satisfaction of loan | 17,934 |
Sales | (15,454) |
Valuation (provision) reversal | (1,365) |
Ending balance | $ 27,163 |
OTHER ASSETS AND LIABILITIES _3
OTHER ASSETS AND LIABILITIES - Narrative (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Residential Mortgage | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Unpaid principal balance | $ 58.8 |
Mortgage Receivable | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Unpaid principal balance | $ 33.6 |
OTHER ASSETS AND LIABILITIES _4
OTHER ASSETS AND LIABILITIES - Schedule of Notes and Loans Receivable (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Financing Receivable [Roll Forward] | |
Beginning balance | $ 429,550 |
Fundings | 0 |
Payment in Kind | 2,211 |
Proceeds from repayments | (37,670) |
Ending balance | 394,091 |
Notes Receivable | |
Financing Receivable [Roll Forward] | |
Beginning balance | 398,227 |
Fundings | 0 |
Payment in Kind | 0 |
Proceeds from repayments | (33,250) |
Ending balance | 364,977 |
Loans Receivable | |
Financing Receivable [Roll Forward] | |
Beginning balance | 31,323 |
Fundings | 0 |
Payment in Kind | 2,211 |
Proceeds from repayments | (4,420) |
Ending balance | $ 29,114 |
OTHER ASSETS AND LIABILITIES _5
OTHER ASSETS AND LIABILITIES - Schedule of Difference Between Aggregate UPB and Aggregate Carrying Value of Notes and Loans Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Carrying value | $ 364,977 | |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
UPB | 493,354 | $ 565,786 |
Carrying value | 394,091 | 429,550 |
Carrying Value Over (Under) UPB | (99,263) | (136,236) |
90+ | ||
Financing Receivable, Past Due [Line Items] | ||
UPB | 0 | 0 |
Carrying value | 0 | 0 |
Carrying Value Over (Under) UPB | $ 0 | $ 0 |
EXCESS MORTGAGE SERVICING RIG_3
EXCESS MORTGAGE SERVICING RIGHTS - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 20, 2024 | Jun. 30, 2024 | |
Fortresses Excess MSR Portfolio | ||
Schedule of Equity Method Investments [Line Items] | ||
Purchases | $ 124,000 | |
Rithm SCU Excess Holdings LLC | Variable Interest Entity, Primary Beneficiary | Corporate Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 80% | |
Excess MSRs | ||
Schedule of Equity Method Investments [Line Items] | ||
Purchases | $ 122,887 | |
Excess MSRs | Weighted Average | ||
Schedule of Equity Method Investments [Line Items] | ||
Discount rate | 8.80% |
EXCESS MORTGAGE SERVICING RIG_4
EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Carrying Value of Investments in Excess MSRs (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 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 | $ 9,693,331 |
Excess MSRs | |
Carrying Value of Investments in Excess MSRs | |
Beginning balance | 208,385 |
Purchases | 122,887 |
Interest income | 10,522 |
Other income | (656) |
Proceeds from repayments | (19,122) |
Proceeds from sales | 0 |
Change in fair value | 19,430 |
Acquisition of assets from Fortress Excess MSR JV | 55,192 |
Reclassification of SLS serviced Excess MSRs to Full MSRs | 1,032 |
Ending balance | $ 395,606 |
EXCESS MORTGAGE SERVICING RIG_5
EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Investments in Excess MSRs and Changes in Fair Value of Excess MSR Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||||
Weighted Average Life (Years) | 4 years | ||||
MSRs Pool 1 | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Original and Recaptured Pools | $ 21,352 | $ (599) | $ 19,430 | $ (10,417) | |
Excess MSRs | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Weighted Average Life (Years) | 6 years | ||||
Amortized Cost Basis | 339,048 | $ 339,048 | |||
Carrying value | $ 395,606 | $ 395,606 | $ 208,385 | ||
Excess MSRs | Minimum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 65% | 65% | |||
Excess MSRs | Maximum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 80% | 80% | |||
Excess MSRs | Weighted Average | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 69.90% | 69.90% | |||
Excess MSRs | Mr. Cooper | Minimum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 20% | 20% | |||
Excess MSRs | Mr. Cooper | Maximum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in Excess MSR | 35% | 35% | |||
Servicer Advances | Servicer advance investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Unpaid principal balance of underlying loans | $ 14,000,000 | $ 14,000,000 |
EXCESS MORTGAGE SERVICING RIG_6
EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Activity of Investments in Equity Method Investees (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Increase (Decrease) in Equity Method Investments [Roll Forward] | ||
Distributions of capital from equity method investees | $ (25,376) | $ 0 |
Recurring Basis | ||
Increase (Decrease) in Equity Method Investments [Roll Forward] | ||
Beginning balance | 62,765 | |
Distributions of earnings from equity method investees | (344) | |
Distributions of capital from equity method investees | (8,846) | |
Change in fair value of investments in equity method investees | 1,617 | |
Equity method investees transferred to direct excess MSR | (55,192) | |
Ending balance | $ 0 |
SERVICER ADVANCE INVESTMENTS -
SERVICER ADVANCE INVESTMENTS - Narrative (Details) - USD ($) $ in Millions | May 01, 2024 | Jun. 30, 2024 |
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] | ||
Ownership percentage | 89.30% | |
Computershare Mortgage Services Inc | ||
Schedule of Equity Method Investments [Line Items] | ||
Business combination, consideration transferred | $ 708 |
SERVICER ADVANCE INVESTMENTS _2
SERVICER ADVANCE INVESTMENTS - Schedule of Servicer Advance Investments (Details) - Servicer advance investments - Servicer Advances - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Investments in and Advances to Affiliates [Line Items] | ||
Amortized Cost Basis | $ 336,131 | $ 362,760 |
Carrying value | $ 357,220 | $ 376,881 |
Weighted Average Discount Rate | 6.20% | 6.20% |
Weighted Average Yield | 7% | 6.60% |
Weighted Average Life (Years) | 8 years 3 months 18 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 | Jun. 30, 2024 | Dec. 31, 2023 |
Investments in and Advances to Affiliates [Line Items] | ||
Outstanding Servicer Advances | $ 357,220 | $ 376,881 |
Face Amount of Secured Notes and Bonds Payable | 29,014,659 | |
Servicer advance investments | Servicer Advances | ||
Investments in and Advances to Affiliates [Line Items] | ||
UPB of Underlying Residential Mortgage Loans | 13,974,237 | 15,499,559 |
Outstanding Servicer Advances | $ 302,282 | $ 320,630 |
Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2.20% | 2.10% |
Face Amount of Secured Notes and Bonds Payable | $ 262,069 | $ 278,845 |
Loan-to-value, gross | 84.70% | 84.10% |
Loan-to-value, net | 82.50% | 81.90% |
Cost of funds, gross | 7.30% | 7.50% |
Cost of funds, net | 6.90% | 6.90% |
SERVICER ADVANCE INVESTMENTS _4
SERVICER ADVANCE INVESTMENTS - Schedule of Servicer Advance Investments and Related Financing (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Principal and interest advances | $ 624,563 | $ 616,801 |
Escrow advances (taxes and insurance advances) | 1,358,320 | 1,442,697 |
Foreclosure advances | 891,268 | 767,171 |
Total servicer advances receivable | 2,774,510 | 2,760,250 |
Servicer advance investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Principal and interest advances | 52,686 | 57,909 |
Escrow advances (taxes and insurance advances) | 137,726 | 149,346 |
Foreclosure advances | 111,870 | 113,375 |
Total servicer advances receivable | $ 302,282 | $ 320,630 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Carrying Value of Goodwill by Reportable Segment (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 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 ($) | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 499,172,000 | $ 481,130,000 |
Accumulated amortization | 134,230,000 | 93,210,000 |
Intangible Assets, Net | 364,942,000 | 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 | 17,090,000 | 3,388,000 |
Intangible Assets, Net | 257,910,000 | 271,612,000 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 73,949,000 | 57,949,000 |
Accumulated amortization | 20,022,000 | 17,834,000 |
Intangible Assets, Net | $ 53,927,000 | 40,115,000 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 2 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 | $ 139,964,000 | 137,922,000 |
Accumulated amortization | 91,685,000 | 67,145,000 |
Intangible Assets, Net | 48,279,000 | 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) | 7 years | |
Trademarks / Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 10,259,000 | 10,259,000 |
Accumulated amortization | 5,433,000 | 4,843,000 |
Intangible Assets, Net | 4,826,000 | 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 | Jun. 30, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2024 | $ 36,216 |
2025 | 49,622 |
2026 | 40,778 |
2027 | 35,834 |
2028 | 35,289 |
2029 and thereafter | 143,962 |
Intangible assets, net | $ 341,701 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Lessee, Lease, Description [Line Items] | |||||
Rent expense, net of sublease income | $ 13.2 | $ 10.9 | $ 25.7 | $ 23.1 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets | Prepaid Expense and Other Assets | Prepaid Expense and Other Assets | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities (includes $503,925 and $51,765 at fair value, respectively) | Accrued expenses and other liabilities (includes $503,925 and $51,765 at fair value, respectively) | Accrued expenses and other liabilities (includes $503,925 and $51,765 at fair value, respectively) | ||
Sublease rentals | $ 20.9 | $ 20.9 | |||
Collateral Pledged | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease obligations | $ 7 | $ 7 |
LEASES - Schedule of Future Com
LEASES - Schedule of Future Commitments for Non-Cancelable Operating and Finance Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Operating Leases | ||
Remainder of 2024 | $ 25,523 | |
2025 | 41,511 | |
2026 | 35,451 | |
2027 | 36,452 | |
2028 | 26,800 | |
2029 and thereafter | 40,189 | |
Total remaining undiscounted lease payments | 205,926 | |
Less: imputed interest | 31,428 | |
Total remaining discounted lease payments | 174,498 | |
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 | 76 | |
Total remaining discounted lease payments | 608 | |
Total | ||
Remainder of 2024 | 25,523 | |
2025 | 41,739 | |
2026 | 35,679 | |
2027 | 36,680 | |
2028 | 26,800 | |
2029 and thereafter | 40,189 | |
Total remaining undiscounted lease payments | 206,610 | |
Less: imputed interest | 31,504 | |
Total remaining discounted lease payments | $ 175,106 | $ 159,236 |
LEASES - Schedule of Other Info
LEASES - Schedule of Other Information Related to Leases (Details) | Jun. 30, 2024 | Dec. 31, 2023 |
Weighted average remaining lease term (years) | ||
Operating leases | 5 years 3 months 18 days | 5 years 9 months 18 days |
Finance leases | 3 years | 3 years 6 months |
Weighted average discount rate | ||
Operating leases | 6.50% | 6.20% |
Finance leases | 7.90% | 7.90% |
LEASES - Schedule of Supplement
LEASES - Schedule of Supplemental Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows - operating leases | $ 17,551 | $ 15,752 |
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 | $ 14,846 | $ 1 |
DERIVATIVES AND HEDGING - Sched
DERIVATIVES AND HEDGING - Schedule of Derivatives and Hedges are Recorded at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Derivative [Line Items] | |||
Derivative and hedging assets | $ 54,357 | $ 28,080 | |
Derivative and hedging liabilities | 35,100 | 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 | 1,100 | 342,000 | |
Derivative liabilities, reverse repurchase agreements | 1,500,000 | ||
IRLCs | |||
Derivative [Line Items] | |||
Derivative and hedging assets | 23,395 | 26,482 | |
Derivative and hedging liabilities | 6,984 | 2,678 | |
TBAs | |||
Derivative [Line Items] | |||
Derivative and hedging assets | 19,134 | 1,492 | |
Derivative and hedging liabilities | 11,976 | 49,087 | |
Treasury Short Sales | |||
Derivative [Line Items] | |||
Derivative and hedging assets | 11,828 | 0 | |
Other commitments | |||
Derivative [Line Items] | |||
Derivative and hedging liabilities | $ 16,140 | $ 0 |
DERIVATIVES AND HEDGING - Sch_2
DERIVATIVES AND HEDGING - Schedule of Derivatives and Hedges of Notional Amounts (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 3,375,000 | $ 7,979,988 |
Interest rate swaps | TBAs, short position | ||
Derivative [Line Items] | ||
Notional amount | $ 2,700,000 | $ 0 |
Derivative, cap interest rate | 4.30% | 0% |
Weighted average maturity | 48 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 | 29 months | 32 months |
IRLCs | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 4,438,032 | $ 2,757,060 |
Treasury Short Sales | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | 1,485,000 | 1,800,000 |
TBAs | TBAs, short position | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | 9,763,300 | 6,013,100 |
Other commitments | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | $ 24,364 | $ 0 |
DERIVATIVES AND HEDGING - Sch_3
DERIVATIVES AND HEDGING - Schedule of Gain (Loss) on Derivatives and Hedging (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative [Line Items] | ||||
Total gain (loss) | $ 1,581 | $ 266,582 | $ 88,908 | $ 82,585 |
Gain (loss) on settlement of residential mortgage loan | $ 10,077 | $ (11,483) | $ (5,447) | $ (1,579) |
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 | Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate | Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable and Corporate |
Total gain (loss) | $ 667 | $ 50,630 | $ 46,062 | $ 17,640 |
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 | Realized and unrealized gains (losses), net | Realized and unrealized gains (losses), net |
Total gain (loss) | $ 914 | $ 215,952 | $ 42,846 | $ 64,945 |
IRLCs | ||||
Derivative [Line Items] | ||||
Total gain (loss) | (14,817) | (19,898) | (7,332) | 6,342 |
TBAs | Gain on originated residential mortgage loans, held-for-sale, net | ||||
Derivative [Line Items] | ||||
Total gain (loss) | 15,484 | 71,212 | 53,394 | 13,229 |
TBAs | Realized and unrealized gains (losses), net | ||||
Derivative [Line Items] | ||||
Total gain (loss) | (14,424) | 507 | (12,901) | (6,875) |
Interest rate swaps | Gain on originated residential mortgage loans, held-for-sale, net | ||||
Derivative [Line Items] | ||||
Total gain (loss) | 0 | (684) | 0 | (1,931) |
Interest rate swaps | Realized and unrealized gains (losses), net | ||||
Derivative [Line Items] | ||||
Total gain (loss) | 1,429 | 215,445 | 30,590 | 71,820 |
Treasury Short Sales | ||||
Derivative [Line Items] | ||||
Total gain (loss) | 12,952 | 0 | 41,297 | 0 |
Other commitments | ||||
Derivative [Line Items] | ||||
Total gain (loss) | $ 957 | $ 0 | $ (16,140) | $ 0 |
DERIVATIVES AND HEDGING - Sch_4
DERIVATIVES AND HEDGING - Schedule of US Treasury Short Sales (Details) - Short Sale Liabilities $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Security Sold Short [Line Items] | |
Face | $ 1,485,000 |
Sale proceeds | 1,490,306 |
Fair value | 1,483,816 |
Unrealized gain (loss) position | 6,491 |
Reverse repurchase agreements(A) | 1,496,956 |
Net asset (liability) | $ 13,140 |
DEBT OBLIGATIONS - Schedule of
DEBT OBLIGATIONS - Schedule of Secured Financing Agreements, Secured Notes and Bonds Payable and Debt Obligations Related to Consolidated Funds (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 29,014,659 | |
Carrying value | $ 28,696,965 | $ 26,076,708 |
Weighted Average Funding Cost | 6.30% | |
Weighted Average Life (Years) | 4 years | |
MSR purchase price holdback | $ 186,695 | 166,620 |
Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 15,181,358 | |
Carrying value | $ 15,179,899 | 12,561,283 |
Weighted Average Funding Cost | 6.10% | |
Weighted Average Life (Years) | 6 months | |
MSR purchase price holdback | $ 164,500 | |
Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 10,030,061 | |
Carrying value | $ 9,955,891 | 10,360,188 |
Weighted Average Funding Cost | 7.30% | |
Weighted Average Life (Years) | 1 year 9 months 18 days | |
Notes Payable of CFEs - Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 3,803,240 | |
Carrying value | $ 3,561,175 | 3,155,237 |
Weighted Average Funding Cost | 4.80% | |
Weighted Average Life (Years) | 23 years 1 month 6 days | |
Warehouse Credit Facilities-Residential Mortgage Loans | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 3,799,496 | |
Carrying value | $ 3,799,496 | 1,940,038 |
Weighted Average Funding Cost | 6.90% | |
Weighted Average Life (Years) | 7 months 6 days | |
Face amount of debt at fixed rate | $ 11,300 | |
Interest rate | 5% | |
Warehouse Credit Facilities-Residential Mortgage Loans | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 22 years 9 months 18 days | |
Outstanding Face | $ 4,244,227 | |
Amortized Cost Basis | 4,296,216 | |
Carrying Value | 4,238,965 | |
Warehouse Credit Facilities - Mortgage Loans Receivable | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 1,411,054 | |
Carrying value | $ 1,411,054 | 1,337,010 |
Weighted Average Funding Cost | 8% | |
Weighted Average Life (Years) | 1 year 3 months 18 days | |
Warehouse Credit Facilities - Mortgage Loans Receivable | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 1 year 1 month 6 days | |
Outstanding Face | $ 1,721,912 | |
Amortized Cost Basis | 1,731,239 | |
Carrying Value | 1,731,239 | |
Government and Government-Backed Securities | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 9,114,181 | |
Carrying value | $ 9,114,181 | 8,152,469 |
Weighted Average Funding Cost | 5.40% | |
Weighted Average Life (Years) | 2 months 12 days | |
Government and Government-Backed Securities | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 8 years 7 months 6 days | |
Outstanding Face | $ 9,559,841 | |
Amortized Cost Basis | 9,361,449 | |
Carrying Value | 9,496,785 | |
Non-Agency RMBS | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 630,000 | |
Carrying value | $ 630,000 | 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 1 month 6 days | |
Outstanding Face | $ 17,276,385 | |
Amortized Cost Basis | 985,108 | |
Carrying Value | 1,008,536 | |
CLOs | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 191,655 | |
Carrying value | $ 190,196 | 183,947 |
Weighted Average Funding Cost | 6.40% | |
Weighted Average Life (Years) | 8 years 9 months 18 days | |
CLOs | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 8 years 9 months 18 days | |
Outstanding Face | $ 192,683 | |
Carrying Value | 193,560 | |
CLOs | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 13,361 | |
Carrying value | $ 13,329 | 30,258 |
Weighted Average Funding Cost | 6.80% | |
Weighted Average Life (Years) | 6 years | |
CLOs | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 6 years | |
Outstanding Face | $ 15,780 | |
Carrying Value | 15,017 | |
SFR Properties and Commercial | ||
Debt Instrument [Line Items] | ||
Carrying value | 826,956 | 1,126,804 |
SFR Properties and Commercial | Secured Financing Agreements | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 34,972 | |
Carrying value | $ 34,972 | 337,630 |
Weighted Average Funding Cost | 8.20% | |
Weighted Average Life (Years) | 6 months | |
SFR Properties and Commercial | Secured Financing Agreements | Collateral | ||
Debt Instrument [Line Items] | ||
Amortized Cost Basis | $ 82,407 | |
Carrying Value | 82,407 | |
Excess MSRs | ||
Debt Instrument [Line Items] | ||
Carrying value | 2,704,127 | 2,713,933 |
Excess MSRs | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 161,406 | |
Carrying value | $ 161,406 | 181,522 |
Weighted Average Funding Cost | 8.70% | |
Weighted Average Life (Years) | 3 years 3 months 18 days | |
Excess MSRs | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 6 years | |
Outstanding Face | $ 56,559,914 | |
Amortized Cost Basis | 221,408 | |
Carrying Value | 255,389 | |
MSRs | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 5,395,119 | |
Carrying value | $ 5,389,633 | 4,800,728 |
Weighted Average Funding Cost | 7.50% | |
Weighted Average Life (Years) | 1 year 4 months 24 days | |
MSRs | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 6 years 4 months 24 days | |
Outstanding Face | $ 569,894,934 | |
Amortized Cost Basis | 7,212,153 | |
Carrying Value | 9,429,829 | |
Servicer Advance Investments | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 262,069 | |
Carrying value | $ 262,069 | 278,042 |
Weighted Average Funding Cost | 7.30% | |
Weighted Average Life (Years) | 1 year 8 months 12 days | |
Servicer Advance Investments | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 8 years 3 months 18 days | |
Outstanding Face | $ 302,282 | |
Amortized Cost Basis | 336,131 | |
Carrying Value | 357,220 | |
Servicer Advances | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 2,281,451 | |
Carrying value | $ 2,280,652 | 2,254,369 |
Weighted Average Funding Cost | 8.10% | |
Weighted Average Life (Years) | 1 year 6 months | |
Servicer Advances | Secured Notes and Bonds Payable | Minimum | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 1.60% | |
Servicer Advances | Secured Notes and Bonds Payable | 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 | $ 2,634,706 | |
Amortized Cost Basis | 2,623,070 | |
Carrying Value | 2,623,070 | |
Consumer Loans | ||
Debt Instrument [Line Items] | ||
Carrying value | 786,425 | 1,106,974 |
Consumer Loans | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 811,073 | |
Carrying value | $ 786,425 | 1,106,974 |
Weighted Average Funding Cost | 6.40% | |
Weighted Average Life (Years) | 3 years 10 months 24 days | |
Consumer Loans | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 1 year 7 months 6 days | |
Outstanding Face | $ 1,011,653 | |
Amortized Cost Basis | 984,285 | |
Carrying Value | 946,367 | |
SFR properties | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 830,582 | |
Carrying value | $ 791,984 | 789,174 |
Weighted Average Funding Cost | 4.10% | |
Weighted Average Life (Years) | 2 years 9 months 18 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 | $ 940,601 | |
Carrying Value | 940,601 | |
Mortgage Loans Receivable | ||
Debt Instrument [Line Items] | ||
Carrying value | 2,062,736 | 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 | |
Mortgage Loans Receivable | Secured Notes and Bonds Payable | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 7 months 6 days | |
Outstanding Face | $ 224,995 | |
Amortized Cost Basis | 224,995 | |
Carrying Value | 224,995 | |
Mortgage Loans Receivable | Notes Payable of CFEs - Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 454,249 | |
Carrying value | $ 451,682 | 318,998 |
Weighted Average Funding Cost | 6.80% | |
Weighted Average Life (Years) | 14 years 8 months 12 days | |
Mortgage Loans Receivable | Notes Payable of CFEs - Consolidated Funds | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 1 year | |
Outstanding Face | $ 479,203 | |
Amortized Cost Basis | 479,203 | |
Carrying Value | 492,103 | |
Secured Facility- Asset Management | Secured Notes and Bonds Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 75,000 | |
Carrying value | $ 70,393 | 69,121 |
Weighted Average Funding Cost | 8.80% | |
Weighted Average Life (Years) | 1 year 3 months 18 days | |
Notes Payable of CFEs - Consolidated Funds | Notes Payable of CFEs - Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 222,250 | |
Carrying value | $ 221,801 | 218,157 |
Weighted Average Funding Cost | 5% | |
Weighted Average Life (Years) | 4 years 3 months 18 days | |
Notes Payable of CFEs - Consolidated Funds | Notes Payable of CFEs - Consolidated Funds | Collateral | ||
Debt Instrument [Line Items] | ||
Outstanding Face | $ 202,130 | |
Carrying Value | 200,552 | |
Residential Mortgage Loans | Notes Payable of CFEs - Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 3,126,741 | |
Carrying value | $ 2,887,692 | $ 2,618,082 |
Weighted Average Funding Cost | 4.40% | |
Weighted Average Life (Years) | 25 years 10 months 24 days | |
Residential Mortgage Loans | Notes Payable of CFEs - Consolidated Funds | Collateral | ||
Debt Instrument [Line Items] | ||
Weighted Average Life (Years) | 25 years 10 months 24 days | |
Outstanding Face | $ 3,577,247 | |
Carrying Value | 3,347,246 | |
2.5% to 3.5% Agency MSR Secured Note and Bond Payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 4,500,000 | |
2.5% to 3.5% Agency MSR Secured Note and Bond Payable | Minimum | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 2.50% | |
2.5% to 3.5% Agency MSR Secured Note and Bond Payable | 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 | $ 900,000 | |
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 | $ 172,200 | |
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 | $ 581,100,000 | |
Variable interest rate spread | 3% | |
Consolidated Funds, Notes Payable, Class A | Notes Payable of CFEs - Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 120,000 | |
Interest rate | 4.30% | |
Consolidated Funds, Notes Payable, Class B | Notes Payable of CFEs - Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 70,000 | |
Interest rate | 6% | |
Consolidated Funds, Notes Payable, Class C | Notes Payable of CFEs - Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 15,000 | |
Interest rate | 6.80% | |
Subordinated Notes | Notes Payable of CFEs - Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 17,300 |
DEBT OBLIGATIONS - General (Nar
DEBT OBLIGATIONS - General (Narrative) (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 29,014,659 |
Secured Financing Agreements | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 15,181,358 |
DEBT OBLIGATIONS - Schedule o_2
DEBT OBLIGATIONS - Schedule of Carrying Value of Debt Obligations (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Debt Instrument [Roll Forward] | |
Beginning balance | $ 26,076,708 |
Ending balance | 28,696,965 |
Servicer Advances and Excess MSRs | |
Debt Instrument [Roll Forward] | |
Beginning balance | 2,713,933 |
Ending balance | 2,704,127 |
MSRs | |
Debt Instrument [Roll Forward] | |
Beginning balance | 4,800,728 |
Ending balance | 5,389,633 |
Real Estate and Other Securities | |
Debt Instrument [Roll Forward] | |
Beginning balance | 8,762,658 |
Ending balance | 9,744,181 |
Residential Mortgage Loans and REO | |
Debt Instrument [Roll Forward] | |
Beginning balance | 5,208,120 |
Ending balance | 6,687,188 |
Consumer Loans | |
Debt Instrument [Roll Forward] | |
Beginning balance | 1,106,974 |
Ending balance | 786,425 |
SFR Properties and Commercial | |
Debt Instrument [Roll Forward] | |
Beginning balance | 1,126,804 |
Ending balance | 826,956 |
Mortgage Loans Receivable | |
Debt Instrument [Roll Forward] | |
Beginning balance | 1,856,008 |
Ending balance | 2,062,736 |
Asset Management | |
Debt Instrument [Roll Forward] | |
Beginning balance | 501,483 |
Ending balance | 495,719 |
Secured Financing Agreements | |
Debt Instrument [Roll Forward] | |
Beginning balance | 12,561,283 |
Borrowings | 68,563,872 |
Repayments | (65,946,782) |
FX remeasurement | (4,987) |
Capitalized deferred financing costs, net of amortization | 6,513 |
Ending balance | 15,179,899 |
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 | Real Estate and Other Securities | |
Debt Instrument [Roll Forward] | |
Borrowings | 40,053,308 |
Repayments | (39,071,785) |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | Residential Mortgage Loans and REO | |
Debt Instrument [Roll Forward] | |
Borrowings | 26,670,929 |
Repayments | (24,811,728) |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 257 |
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 and Commercial | |
Debt Instrument [Roll Forward] | |
Beginning balance | 337,630 |
Borrowings | 15,183 |
Repayments | (324,197) |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 6,356 |
Ending balance | 34,972 |
Secured Financing Agreements | Mortgage Loans Receivable | |
Debt Instrument [Roll Forward] | |
Borrowings | 1,807,048 |
Repayments | (1,733,004) |
FX remeasurement | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Financing Agreements | Asset Management | |
Debt Instrument [Roll Forward] | |
Borrowings | 17,404 |
Repayments | (6,068) |
FX remeasurement | (4,987) |
Capitalized deferred financing costs, net of amortization | (100) |
Secured Notes and Bonds Payable | |
Debt Instrument [Roll Forward] | |
Acquired borrowings, net of discount | 190,596 |
Borrowings | 2,353,384 |
Repayments | (2,959,966) |
FX remeasurement | (99) |
Unrealized (gain) loss on notes, fair value | 2,451 |
Capitalized deferred financing costs, net of amortization | 9,337 |
Secured Notes and Bonds Payable | Servicer Advances and Excess MSRs | |
Debt Instrument [Roll Forward] | |
Acquired borrowings, net of discount | 190,596 |
Borrowings | 1,157,000 |
Repayments | (1,357,552) |
FX remeasurement | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 150 |
Secured Notes and Bonds Payable | MSRs | |
Debt Instrument [Roll Forward] | |
Acquired borrowings, net of discount | 0 |
Borrowings | 1,191,159 |
Repayments | (603,815) |
FX remeasurement | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 1,561 |
Secured Notes and Bonds Payable | Real Estate and Other Securities | |
Debt Instrument [Roll Forward] | |
Acquired borrowings, net of discount | 0 |
Borrowings | 0 |
Repayments | 0 |
FX remeasurement | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Notes and Bonds Payable | Residential Mortgage Loans and REO | |
Debt Instrument [Roll Forward] | |
Acquired borrowings, net of discount | 0 |
Borrowings | 0 |
Repayments | (650,000) |
FX remeasurement | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Notes and Bonds Payable | Consumer Loans | |
Debt Instrument [Roll Forward] | |
Acquired borrowings, net of discount | 0 |
Borrowings | 0 |
Repayments | (323,594) |
FX remeasurement | 0 |
Unrealized (gain) loss on notes, fair value | 2,451 |
Capitalized deferred financing costs, net of amortization | 594 |
Secured Notes and Bonds Payable | SFR Properties and Commercial | |
Debt Instrument [Roll Forward] | |
Acquired borrowings, net of discount | 0 |
Borrowings | 0 |
Repayments | (2,811) |
FX remeasurement | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 5,621 |
Secured Notes and Bonds Payable | Mortgage Loans Receivable | |
Debt Instrument [Roll Forward] | |
Acquired borrowings, net of discount | 0 |
Borrowings | 0 |
Repayments | 0 |
FX remeasurement | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Secured Notes and Bonds Payable | Asset Management | |
Debt Instrument [Roll Forward] | |
Acquired borrowings, net of discount | 0 |
Borrowings | 5,225 |
Repayments | (22,194) |
FX remeasurement | (99) |
Unrealized (gain) loss on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 1,411 |
Notes Payable of Consolidated CFEs | |
Debt Instrument [Roll Forward] | |
Beginning balance | 3,155,237 |
Borrowings | 899,499 |
Repayments | (493,425) |
Discount on borrowings, net of amortization | (24,260) |
Unrealized (gain) loss on notes, fair value | 26,855 |
Capitalized deferred financing costs, net of amortization | (2,731) |
Ending balance | 3,561,175 |
Notes Payable of Consolidated CFEs | 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 |
Capitalized deferred financing costs, net of amortization | 0 |
Notes Payable of Consolidated CFEs | MSRs | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Discount on borrowings, net of amortization | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Notes Payable of Consolidated CFEs | 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 |
Capitalized deferred financing costs, net of amortization | 0 |
Notes Payable of Consolidated CFEs | Residential Mortgage Loans and REO | |
Debt Instrument [Roll Forward] | |
Borrowings | 445,250 |
Repayments | (169,363) |
Discount on borrowings, net of amortization | (24,260) |
Unrealized (gain) loss on notes, fair value | 17,983 |
Capitalized deferred financing costs, net of amortization | 0 |
Notes Payable of Consolidated CFEs | 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 |
Capitalized deferred financing costs, net of amortization | 0 |
Notes Payable of Consolidated CFEs | SFR Properties and Commercial | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Discount on borrowings, net of amortization | 0 |
Unrealized (gain) loss on notes, fair value | 0 |
Capitalized deferred financing costs, net of amortization | 0 |
Notes Payable of Consolidated CFEs | Mortgage Loans Receivable | |
Debt Instrument [Roll Forward] | |
Beginning balance | 318,998 |
Borrowings | 454,249 |
Repayments | (324,062) |
Discount on borrowings, net of amortization | 0 |
Unrealized (gain) loss on notes, fair value | 5,228 |
Capitalized deferred financing costs, net of amortization | (2,731) |
Ending balance | 451,682 |
Notes Payable of Consolidated CFEs | Asset Management | |
Debt Instrument [Roll Forward] | |
Borrowings | 0 |
Repayments | 0 |
Discount on borrowings, net of amortization | 0 |
Unrealized (gain) loss on notes, fair value | 3,644 |
Capitalized deferred financing costs, net of amortization | $ 0 |
DEBT OBLIGATIONS - Schedule o_3
DEBT OBLIGATIONS - Schedule of Contractual Maturities of Debt Obligations (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Debt maturing in: | |
Remainder of 2024 | $ 13,712,919 |
2025 | 5,547,710 |
2026 | 4,035,303 |
2027 | 1,174,398 |
2028 | 705,783 |
2029 and thereafter | 4,888,546 |
Total | 30,064,659 |
Nonrecourse | |
Debt maturing in: | |
Remainder of 2024 | 842,943 |
2025 | 247,781 |
2026 | 2,084,833 |
2027 | 734,398 |
2028 | 705,783 |
2029 and thereafter | 4,113,546 |
Total | 8,729,284 |
Recourse | |
Debt maturing in: | |
Remainder of 2024 | 12,869,976 |
2025 | 5,299,929 |
2026 | 1,950,470 |
2027 | 440,000 |
2028 | 0 |
2029 and thereafter | 775,000 |
Total | 21,335,375 |
Nonrecourse, Secured Financing Agreements | |
Debt maturing in: | |
Total | 1,000,000 |
Nonrecourse, Secured Notes and Bonds Payable | |
Debt maturing in: | |
Total | 3,900,000 |
Nonrecourse, Unsecured Notes Net of Issuance Costs | |
Debt maturing in: | |
Total | 200,000 |
Nonrecourse, Consolidated Funds Notes Payable | |
Debt maturing in: | |
Total | 3,600,000 |
Recourse, Secured Financing Agreements | |
Debt maturing in: | |
Total | 14,100,000 |
Recourse, Secured Notes and Bonds Payable | |
Debt maturing in: | |
Total | 6,100,000 |
Recourse, Unsecured Notes Net of Issuance Costs | |
Debt maturing in: | |
Total | 1,100,000 |
Recourse, Consolidated Funds Notes Payable | |
Debt maturing in: | |
Total | $ 0 |
DEBT OBLIGATIONS - Schedule o_4
DEBT OBLIGATIONS - Schedule of Borrowing Capacity (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Residential mortgage loans, mortgage loans receivable, SFR and commercial notes receivable | Secured Financing Agreements | |
Debt Instrument [Line Items] | |
Borrowing Capacity | $ 5,282,943 |
Balance Outstanding | 2,342,051 |
Available financing | 2,940,892 |
Loan originations | Secured Financing Agreements | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 5,627,000 |
Balance Outstanding | 2,903,472 |
Available financing | 2,723,528 |
CLOs | Secured Financing Agreements | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 314,230 |
Balance Outstanding | 191,655 |
Available financing | 122,575 |
Excess MSRs | Secured Notes and Bonds Payable | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 197,016 |
Balance Outstanding | 161,406 |
Available financing | 35,610 |
MSRs | Secured Notes and Bonds Payable | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 5,983,998 |
Balance Outstanding | 5,395,119 |
Available financing | 588,879 |
Servicer advances | Secured Notes and Bonds Payable | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 4,210,000 |
Balance Outstanding | 2,543,520 |
Available financing | 1,666,480 |
SFR | Secured Notes and Bonds Payable | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 296,423 |
Balance Outstanding | 192,606 |
Available financing | 103,816 |
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 | 21,964,110 |
Balance Outstanding | 13,729,830 |
Available financing | $ 8,234,280 |
DEBT OBLIGATIONS - 2029 Senior
DEBT OBLIGATIONS - 2029 Senior Unsecured Notes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 19, 2024 | Jun. 30, 2024 | Jun. 30, 2024 | |
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 29,014,659 | $ 29,014,659 | |
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 | 16,200 | $ 16,200 |
Interest expense and warehouse line fees | $ 5,300 | ||
Debt instrument, restrictive covenants, minimum total unencumbered assets maintenance requirement | 1.20 |
DEBT OBLIGATIONS - Schedule o_5
DEBT OBLIGATIONS - Schedule of Debt Redemption (Details) - 2029 Senior Notes - Senior Notes | 6 Months Ended | |
Mar. 19, 2024 | Jun. 30, 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 - 2025 Senior
DEBT OBLIGATIONS - 2025 Senior Unsecured Notes (Narrative) (Details) | 3 Months Ended | ||||
Oct. 16, 2024 | Mar. 19, 2024 USD ($) | Oct. 15, 2023 | Sep. 16, 2020 USD ($) | Jun. 30, 2024 USD ($) | |
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 29,014,659,000 | ||||
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 | 2,300,000 | |||
Interest expense and warehouse line fees | $ 12,300,000 | ||||
Debt instrument, restrictive covenants, minimum total unencumbered assets maintenance requirement | 1.20 | ||||
Repurchase face amount | $ 275,000,000 | ||||
Repurchase amount | 282,400,000 | ||||
Early tender payment | 30 | ||||
Aggregate principal amount of senior notes | $ 275,000,000 | ||||
Senior Notes | 2025 Senior Notes | Forecast | |||||
Debt Instrument [Line Items] | |||||
Debt redemption percentage | 100% |
DEBT OBLIGATIONS - Tax Receivab
DEBT OBLIGATIONS - Tax Receivable Agreement (Narrative) (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Debt Disclosure [Abstract] | |
Maximum undiscounted amounts | $ 256,330 |
Tax receivable agreement liability | $ 165,600 |
DEBT OBLIGATIONS - Schedule o_6
DEBT OBLIGATIONS - Schedule of Potential Payments Under TRA (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2024 | $ 0 |
2025 | 29,819 |
2026 | 17,374 |
2027 | 18,994 |
2028 | 15,940 |
2029 and thereafter | 174,203 |
Potential Payments Under TRA | $ 256,330 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Carrying Values and Fair Values of Financial Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Assets | |||||
MSRs and MSR financing receivables | $ 9,693,331 | $ 8,405,938 | |||
Residential mortgage loans, HFS | [1] | 3,910,823 | 2,540,742 | ||
Residential mortgage loans, HFS, at fair value | 3,837,929 | 2,461,865 | |||
Residential mortgage loans subject to repurchase | 1,905,625 | 1,782,998 | $ 1,296,097 | ||
Derivative and hedging assets | 54,357 | 28,080 | |||
Notes receivable | 364,977 | ||||
Loans receivable | 29,114 | ||||
Cash, cash equivalents and restricted cash | 1,561,715 | 1,697,095 | $ 1,697,655 | $ 1,629,328 | |
Other assets | 2,066,399 | 1,971,592 | |||
Liabilities | |||||
Residential mortgage loan repurchase liability | 1,900,000 | ||||
Derivative liabilities | 35,100 | 51,765 | |||
Excess spread financing | 116,142 | 0 | |||
Notes receivable financing | 352,683 | 0 | |||
Liabilities of consolidated CFEs - funds | 221,800 | ||||
US Treasury Bill Securities | |||||
Liabilities | |||||
Amortized cost | 24,900 | ||||
Recurring Basis | |||||
Assets | |||||
Excess MSRs, principal balance | 56,559,914 | ||||
MSRs and MSR financing receivables, principal balance | 587,043,388 | ||||
Servicer advance investments, principal balance | 302,282 | ||||
Real estate and other securities, principal balance | 19,081,035 | ||||
Residential mortgage loans, HFS, principal balance | 83,301 | ||||
Residential mortgage loans, HFS, at fair value, principal balance | 3,807,723 | ||||
Residential mortgage loans, HFI, at fair value, principal balance | 421,507 | ||||
Residential mortgage loans subject to repurchase, principal balance | 1,905,625 | ||||
Consumer loans, principal balance | 1,011,653 | ||||
Derivative and hedging assets, principal balance | 11,640,055 | ||||
Mortgage loans receivable, principal balance | 2,049,266 | ||||
Note receivable, principal balance | 464,240 | ||||
Loans receivable, principal balance | 29,114 | ||||
Cash, cash equivalents and restricted cash | 1,535,691 | ||||
Assets of consolidated CFEs - funds, principal balance | 318,315 | ||||
Assets of consolidated CFEs - loan securitizations, principal balance | 4,056,450 | ||||
Liabilities | |||||
Secured financing agreements, principal balance | 15,181,358 | ||||
Secured notes and bonds payable, principal balance | 10,030,061 | ||||
Unsecured notes, net of issuance costs, principal balance | 1,288,021 | ||||
Residential mortgage loan repurchase liability, principal balance | 1,905,625 | ||||
Derivative liabilities, principal balance | 7,445,641 | ||||
Excess spread financing, principal balance | 16,149,789 | ||||
Notes receivable financing, principal balance | 323,452 | ||||
Liabilities of consolidated CFEs - funds, principal balance | 222,250 | ||||
Liabilities of consolidated CFEs - loan securitizations, principal balance | 3,579,739 | ||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | 15,522,381 | 14,331,652 | |||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability value | 1,347,594 | 772,925 | |||
Recurring Basis | Asset-Backed Securities Issued | |||||
Liabilities | |||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability value | 205,286 | $ 235,770 | |||
Recurring Basis | Carrying Value | |||||
Assets | |||||
Excess MSRs | 395,606 | ||||
MSRs and MSR financing receivables | 9,693,331 | ||||
Servicer advance investments | 357,220 | ||||
Real estate and other securities | 10,134,642 | ||||
Residential mortgage loans, HFS | 72,894 | ||||
Residential mortgage loans, HFS, at fair value | 3,837,929 | ||||
Residential mortgage loans, HFI, at fair value | 368,866 | ||||
Residential mortgage loans subject to repurchase | 1,905,625 | ||||
Consumer loans | 946,367 | ||||
Derivative and hedging assets | 54,357 | ||||
Mortgage loans receivable | 2,049,266 | ||||
Notes receivable | 364,977 | ||||
Loans receivable | 29,114 | ||||
Cash, cash equivalents and restricted cash | 1,535,691 | ||||
Assets of consolidated CFEs - funds | 354,013 | ||||
Assets of consolidated CFEs - loan securitizations | 3,878,790 | ||||
Other assets | 55,586 | ||||
Assets, fair value | 36,034,274 | ||||
Liabilities | |||||
Secured financing agreements | 15,179,899 | ||||
Secured notes and bonds payable | 9,955,891 | ||||
Unsecured notes, net of issuance costs | 1,197,294 | ||||
Residential mortgage loan repurchase liability | 1,905,625 | ||||
Derivative liabilities | 35,100 | ||||
Excess spread financing | 116,142 | ||||
Notes receivable financing | 352,683 | ||||
Liabilities of consolidated CFEs - funds | 223,726 | ||||
Liabilities of consolidated CFEs - loan securitizations | 3,352,107 | ||||
Liabilities, fair value | 32,318,467 | ||||
Recurring Basis | Fair Value | |||||
Assets | |||||
Excess MSRs | 395,606 | ||||
MSRs and MSR financing receivables | 9,693,331 | ||||
Servicer advance investments | 357,220 | ||||
Real estate and other securities | 10,134,642 | ||||
Residential mortgage loans, HFS | 72,894 | ||||
Residential mortgage loans, HFS, at fair value | 3,837,929 | ||||
Residential mortgage loans, HFI, at fair value | 368,866 | ||||
Residential mortgage loans subject to repurchase | 1,905,625 | ||||
Consumer loans | 946,367 | ||||
Derivative and hedging assets | 54,357 | ||||
Mortgage loans receivable | 2,049,266 | ||||
Notes receivable | 364,977 | ||||
Loans receivable | 29,114 | ||||
Cash, cash equivalents and restricted cash | 1,561,715 | ||||
Assets of consolidated CFEs - funds | 354,013 | ||||
Assets of consolidated CFEs - loan securitizations | 3,878,790 | ||||
Other assets | 55,586 | ||||
Assets, fair value | 36,060,298 | ||||
Liabilities | |||||
Secured financing agreements | 15,179,899 | ||||
Secured notes and bonds payable | 10,475,128 | ||||
Unsecured notes, net of issuance costs | 1,194,395 | ||||
Residential mortgage loan repurchase liability | 1,905,625 | ||||
Derivative liabilities | 35,100 | ||||
Excess spread financing | 116,142 | ||||
Notes receivable financing | 352,683 | ||||
Liabilities of consolidated CFEs - funds | 223,726 | ||||
Liabilities of consolidated CFEs - loan securitizations | 3,352,108 | ||||
Liabilities, fair value | 32,834,806 | ||||
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 | 24,866 | ||||
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 | 11,828 | ||||
Mortgage loans receivable | 0 | ||||
Notes receivable | 0 | ||||
Loans receivable | 0 | ||||
Cash, cash equivalents and restricted cash | 1,561,715 | ||||
Assets of consolidated CFEs - funds | 10,892 | ||||
Assets of consolidated CFEs - loan securitizations | 39,352 | ||||
Other assets | 0 | ||||
Assets, fair value | 1,648,653 | ||||
Liabilities | |||||
Secured financing agreements | 0 | ||||
Secured notes and bonds payable | 0 | ||||
Unsecured notes, net of issuance costs | 0 | ||||
Residential mortgage loan repurchase liability | 0 | ||||
Derivative liabilities | 0 | ||||
Excess spread financing | 0 | ||||
Notes receivable financing | 0 | ||||
Liabilities of consolidated CFEs - funds | 1,925 | ||||
Liabilities of consolidated CFEs - loan securitizations | 12,734 | ||||
Liabilities, fair value | 14,659 | ||||
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 | 9,300,237 | ||||
Residential mortgage loans, HFS | 0 | ||||
Residential mortgage loans, HFS, at fair value | 3,822,208 | ||||
Residential mortgage loans, HFI, at fair value | 0 | ||||
Residential mortgage loans subject to repurchase | 1,905,625 | ||||
Consumer loans | 0 | ||||
Derivative and hedging assets | 19,134 | ||||
Mortgage loans receivable | 0 | ||||
Notes receivable | 0 | ||||
Loans receivable | 0 | ||||
Cash, cash equivalents and restricted cash | 0 | ||||
Assets of consolidated CFEs - funds | 0 | ||||
Assets of consolidated CFEs - loan securitizations | 3,347,335 | ||||
Other assets | 0 | ||||
Assets, fair value | 18,394,539 | ||||
Liabilities | |||||
Secured financing agreements | 14,985,142 | ||||
Secured notes and bonds payable | 0 | ||||
Unsecured notes, net of issuance costs | 0 | ||||
Residential mortgage loan repurchase liability | 1,905,625 | ||||
Derivative liabilities | 11,976 | ||||
Excess spread financing | 0 | ||||
Notes receivable financing | 0 | ||||
Liabilities of consolidated CFEs - funds | 0 | ||||
Liabilities of consolidated CFEs - loan securitizations | 2,887,692 | ||||
Liabilities, fair value | 19,790,435 | ||||
Recurring Basis | Fair Value | Level 3 | |||||
Assets | |||||
Excess MSRs | 395,606 | ||||
MSRs and MSR financing receivables | 9,693,331 | ||||
Servicer advance investments | 357,220 | ||||
Real estate and other securities | 809,539 | ||||
Residential mortgage loans, HFS | 72,894 | ||||
Residential mortgage loans, HFS, at fair value | 15,721 | ||||
Residential mortgage loans, HFI, at fair value | 368,866 | ||||
Residential mortgage loans subject to repurchase | 0 | ||||
Consumer loans | 946,367 | ||||
Derivative and hedging assets | 23,395 | ||||
Mortgage loans receivable | 2,049,266 | ||||
Notes receivable | 364,977 | ||||
Loans receivable | 29,114 | ||||
Cash, cash equivalents and restricted cash | 0 | ||||
Assets of consolidated CFEs - funds | 0 | ||||
Assets of consolidated CFEs - loan securitizations | 492,103 | ||||
Other assets | 55,586 | ||||
Assets, fair value | 15,673,985 | ||||
Liabilities | |||||
Secured financing agreements | 194,757 | ||||
Secured notes and bonds payable | 10,475,128 | ||||
Unsecured notes, net of issuance costs | 1,194,395 | ||||
Residential mortgage loan repurchase liability | 0 | ||||
Derivative liabilities | 23,124 | ||||
Excess spread financing | 116,142 | ||||
Notes receivable financing | 352,683 | ||||
Liabilities of consolidated CFEs - funds | 221,801 | ||||
Liabilities of consolidated CFEs - loan securitizations | 451,682 | ||||
Liabilities, fair value | 13,029,712 | ||||
Recurring Basis | Fair Value | Net Asset Value (“NAV”) | |||||
Assets | |||||
Assets of consolidated CFEs - funds | 343,121 | ||||
Assets, fair value | 343,121 | ||||
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 June 30, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.1 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.2 billion and $4.7 billion, respectively. See Note 20 for further details. |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of Changes in the Company’s Level 3 Inputs Financial Assets (Details) - Recurring Basis $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 14,331,652 |
Transfers | |
Transfers from Level 3 | (149,919) |
Transfers to Level 3 | 1,389 |
Computershare Mortgage Acquisition (Note 3) | 696,462 |
Gain (loss) included in net income | |
Credit losses on securities | (914) |
Included in servicing revenue | 7,251 |
Excess MSRs | 19,430 |
Excess MSRs, equity method investees | 1,617 |
Servicer advance investments | 6,388 |
Consumer loans | (51,389) |
Residential mortgage loans | 24,641 |
Gain (loss) on settlement of investments, net | (620) |
Other income (loss), net | 12,013 |
Gains (losses) included in OCI | (3,474) |
Interest income | 56,834 |
Purchases, sales and repayments | |
Purchases, net | 850,948 |
Proceeds from sales | (49,030) |
Proceeds from repayments | (1,959,057) |
Originations and other | 1,728,159 |
Ending balance | 15,522,381 |
Excess MSRs | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 271,150 |
Transfers | |
Transfers from Level 3 | 0 |
Transfers to Level 3 | 0 |
Computershare Mortgage Acquisition (Note 3) | (1,032) |
Gain (loss) included in net income | |
Credit losses on securities | 0 |
Included in servicing revenue | 0 |
Excess MSRs | 19,430 |
Excess MSRs, equity method investees | 1,617 |
Servicer advance investments | |
Consumer loans | |
Residential mortgage loans | |
Gain (loss) on settlement of investments, net | (656) |
Other income (loss), net | |
Gains (losses) included in OCI | |
Interest income | 10,522 |
Purchases, sales and repayments | |
Purchases, net | 122,887 |
Proceeds from sales | 0 |
Proceeds from repayments | (28,312) |
Originations and other | |
Ending balance | 395,606 |
MSRs, MSR Financing Receivables, Excess Spread Financing | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 8,405,938 |
Transfers | |
Transfers from Level 3 | 0 |
Transfers to Level 3 | 0 |
Computershare Mortgage Acquisition (Note 3) | 697,494 |
Gain (loss) included in net income | |
Credit losses on securities | 0 |
Included in servicing revenue | 7,251 |
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 | 2,404 |
Proceeds from repayments | 0 |
Originations and other | 580,244 |
Ending balance | 9,693,331 |
Servicer Advance Investments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 376,881 |
Transfers | |
Transfers from Level 3 | (7,873) |
Transfers to Level 3 | 0 |
Computershare Mortgage Acquisition (Note 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 | 6,388 |
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 | 13,254 |
Purchases, sales and repayments | |
Purchases, net | 400,652 |
Proceeds from sales | 0 |
Proceeds from repayments | (432,082) |
Originations and other | 0 |
Ending balance | 357,220 |
Real Estate and Other Securities | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 804,029 |
Transfers | |
Transfers from Level 3 | 0 |
Transfers to Level 3 | 0 |
Computershare Mortgage Acquisition (Note 3) | 0 |
Gain (loss) included in net income | |
Credit losses on securities | (914) |
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 | 5,585 |
Gains (losses) included in OCI | (3,474) |
Interest income | 14,869 |
Purchases, sales and repayments | |
Purchases, net | 80,517 |
Proceeds from sales | 0 |
Proceeds from repayments | (91,109) |
Originations and other | 0 |
Ending balance | 809,539 |
Derivatives | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 23,804 |
Transfers | |
Transfers from Level 3 | 0 |
Transfers to Level 3 | 0 |
Computershare Mortgage Acquisition (Note 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 | (23,472) |
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) |
Ending balance | 271 |
Residential Mortgage Loans | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 513,381 |
Transfers | |
Transfers from Level 3 | (142,046) |
Transfers to Level 3 | 1,389 |
Computershare Mortgage Acquisition (Note 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 | 24,641 |
Gain (loss) on settlement of investments, net | 0 |
Other income (loss), net | 4,348 |
Gains (losses) included in OCI | 0 |
Interest income | 0 |
Purchases, sales and repayments | |
Purchases, net | 246,892 |
Proceeds from sales | (61,532) |
Proceeds from repayments | (32,086) |
Originations and other | (170,400) |
Ending balance | 384,587 |
Consumer Loans | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 1,274,005 |
Transfers | |
Transfers from Level 3 | 0 |
Transfers to Level 3 | 0 |
Computershare Mortgage Acquisition (Note 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 | (51,389) |
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 | 15,978 |
Purchases, sales and repayments | |
Purchases, net | 0 |
Proceeds from sales | 10,098 |
Proceeds from repayments | (302,325) |
Originations and other | 0 |
Ending balance | 946,367 |
Notes and Loans Receivable | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 429,550 |
Transfers | |
Transfers from Level 3 | 0 |
Transfers to Level 3 | 0 |
Computershare Mortgage Acquisition (Note 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 | 2,211 |
Purchases, sales and repayments | |
Purchases, net | 0 |
Proceeds from sales | 0 |
Proceeds from repayments | (37,670) |
Originations and other | 0 |
Ending balance | 394,091 |
Mortgage Loans Receivable | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 2,232,914 |
Transfers | |
Transfers from Level 3 | 0 |
Transfers to Level 3 | 0 |
Computershare Mortgage Acquisition (Note 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 | 25,552 |
Gains (losses) included in OCI | 0 |
Interest income | 0 |
Purchases, sales and repayments | |
Purchases, net | 0 |
Proceeds from sales | 0 |
Proceeds from repayments | (1,035,473) |
Originations and other | 1,318,376 |
Ending balance | $ 2,541,369 |
FAIR VALUE MEASUREMENTS - Sch_3
FAIR VALUE MEASUREMENTS - Schedule of Changes in the Company’s Level 3 Financial Liabilities (Details) - Recurring Basis $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 772,925 |
Transfers from Level 3 | 0 |
Transfers to Level 3 | 352,683 |
Computershare Mortgage Acquisition (Note 3) | 125,168 |
Gains (losses) included in net income | |
Servicing revenue, net | (9,026) |
Other income | 11,323 |
Purchases, sales and repayments | |
Purchases | 0 |
Proceeds from sales | 451,128 |
Payments | (356,997) |
Other | 390 |
Ending balance | 1,347,594 |
Asset-Backed Securities Issued | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 235,770 |
Transfers from Level 3 | 0 |
Transfers to Level 3 | 0 |
Computershare Mortgage Acquisition (Note 3) | 0 |
Gains (losses) included in net income | |
Servicing revenue, net | 0 |
Other income | 2,451 |
Purchases, sales and repayments | |
Purchases | 0 |
Proceeds from sales | 0 |
Payments | (32,935) |
Other | 0 |
Ending balance | 205,286 |
Notes Payable of CFEs - Consolidated Funds | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 218,157 |
Transfers from Level 3 | 0 |
Transfers to Level 3 | 0 |
Computershare Mortgage Acquisition (Note 3) | 0 |
Gains (losses) included in net income | |
Servicing revenue, net | 0 |
Other income | 3,644 |
Purchases, sales and repayments | |
Purchases | 0 |
Proceeds from sales | 0 |
Payments | 0 |
Other | 0 |
Ending balance | 221,801 |
Notes Payable of CFEs - Mortgage Loans Receivable | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 318,998 |
Transfers from Level 3 | 0 |
Transfers to Level 3 | 0 |
Computershare Mortgage Acquisition (Note 3) | 0 |
Gains (losses) included in net income | |
Servicing revenue, net | 0 |
Other income | 5,228 |
Purchases, sales and repayments | |
Purchases | 0 |
Proceeds from sales | 451,128 |
Payments | (324,062) |
Other | 390 |
Ending balance | 451,682 |
Excess Spread Financing | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 0 |
Transfers from Level 3 | 0 |
Transfers to Level 3 | 0 |
Computershare Mortgage Acquisition (Note 3) | 125,168 |
Gains (losses) included in net income | |
Servicing revenue, net | (9,026) |
Other income | 0 |
Purchases, sales and repayments | |
Purchases | 0 |
Proceeds from sales | 0 |
Payments | 0 |
Other | 0 |
Ending balance | 116,142 |
Notes Receivable Financing | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 0 |
Transfers from Level 3 | 0 |
Transfers to Level 3 | 352,683 |
Computershare Mortgage Acquisition (Note 3) | 0 |
Gains (losses) included in net income | |
Servicing revenue, net | 0 |
Other income | 0 |
Purchases, sales and repayments | |
Purchases | 0 |
Proceeds from sales | 0 |
Payments | 0 |
Other | 0 |
Ending balance | $ 352,683 |
FAIR VALUE MEASUREMENTS - Sch_4
FAIR VALUE MEASUREMENTS - Schedule of Information Regarding the Ranges and Weighted Averages of Inputs (Details) | 6 Months Ended |
Jun. 30, 2024 $ / Loan | |
Prepayment Rate | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.018 |
Prepayment Rate | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Servicing asset, measurement input | 1 |
Prepayment Rate | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.069 |
Prepayment Rate | Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.025 |
Prepayment Rate | Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.994 |
Prepayment Rate | Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.058 |
Prepayment Rate | Non-Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.018 |
Prepayment Rate | Non-Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Servicing asset, measurement input | 1 |
Prepayment Rate | Non-Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.087 |
Prepayment Rate | Ginnie Mae | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.021 |
Prepayment Rate | Ginnie Mae | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.785 |
Prepayment Rate | Ginnie Mae | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.088 |
Prepayment Rate | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.024 |
Prepayment Rate | Directly Held | Excess MSRs | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.115 |
Prepayment Rate | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.069 |
Delinquency | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0 |
Delinquency | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Servicing asset, measurement input | 1 |
Delinquency | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.053 |
Delinquency | Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0 |
Delinquency | Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Servicing asset, measurement input | 1 |
Delinquency | Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.016 |
Delinquency | Non-Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0 |
Delinquency | Non-Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Servicing asset, measurement input | 1 |
Delinquency | Non-Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.241 |
Delinquency | Ginnie Mae | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0 |
Delinquency | Ginnie Mae | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Servicing asset, measurement input | 1 |
Delinquency | Ginnie Mae | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.077 |
Delinquency | Directly Held | Excess MSRs | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.003 |
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 | 0.050 |
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 | 0.916 |
Recapture Rate | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.564 |
Mortgage Servicing Amount | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0001 |
Mortgage Servicing Amount | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0159 |
Mortgage Servicing Amount | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0034 |
Mortgage Servicing Amount | Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0002 |
Mortgage Servicing Amount | Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0159 |
Mortgage Servicing Amount | Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0027 |
Mortgage Servicing Amount | Non-Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0001 |
Mortgage Servicing Amount | Non-Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0156 |
Mortgage Servicing Amount | Non-Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0044 |
Mortgage Servicing Amount | Ginnie Mae | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Servicing asset, measurement input | 0.0008 |
Mortgage Servicing Amount | Ginnie Mae | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Servicing asset, measurement input | 0.0154 |
Mortgage Servicing Amount | Ginnie Mae | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 0.0045 |
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 | 0.0021 |
Collateral Weighted Average Maturity (Years) | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Collateral weighted average maturity (years) | 0 years |
Collateral Weighted Average Maturity (Years) | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Collateral weighted average maturity (years) | 58 years |
Collateral Weighted Average Maturity (Years) | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Collateral weighted average maturity (years) | 24 years |
Collateral Weighted Average Maturity (Years) | Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Collateral weighted average maturity (years) | 0 years |
Collateral Weighted Average Maturity (Years) | Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Collateral weighted average maturity (years) | 40 years |
Collateral Weighted Average Maturity (Years) | Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Collateral weighted average maturity (years) | 23 years |
Collateral Weighted Average Maturity (Years) | Non-Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Collateral weighted average maturity (years) | 0 years |
Collateral Weighted Average Maturity (Years) | Non-Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Collateral weighted average maturity (years) | 58 years |
Collateral Weighted Average Maturity (Years) | Non-Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Collateral weighted average maturity (years) | 22 years |
Collateral Weighted Average Maturity (Years) | Ginnie Mae | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Collateral weighted average maturity (years) | 0 years |
Collateral Weighted Average Maturity (Years) | Ginnie Mae | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Collateral weighted average maturity (years) | 42 years |
Collateral Weighted Average Maturity (Years) | Ginnie Mae | MSRs, MSR Financing Receivables, Excess Spread Financing | 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) | 28 years |
Collateral Weighted Average Maturity (Years) | Directly Held | Excess MSRs | Weighted Average | |
Directly Held | |
Collateral weighted average maturity (years) | 19 years |
Measurement Input, Servicing Cost | Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Servicing asset, measurement input | 6.86 |
Measurement Input, Servicing Cost | Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Servicing asset, measurement input | 6.97 |
Measurement Input, Servicing Cost | Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 6.89 |
Measurement Input, Servicing Cost | Non-Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Minimum | |
Directly Held | |
Servicing asset, measurement input | 8.54 |
Measurement Input, Servicing Cost | Non-Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Maximum | |
Directly Held | |
Servicing asset, measurement input | 10.72 |
Measurement Input, Servicing Cost | Non-Agency | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 9.42 |
Measurement Input, Servicing Cost | Ginnie Mae | MSRs, MSR Financing Receivables, Excess Spread Financing | Weighted Average | |
Directly Held | |
Servicing asset, measurement input | 8.20 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Fair Value | $ 68.5 |
Notes payable of consolidated funds | $ 221.8 |
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 | 8.90% |
MSRs | Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 8.70% |
MSRs | Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Discount rate | 10.30% |
FAIR VALUE MEASUREMENTS - Sch_5
FAIR VALUE MEASUREMENTS - Schedule of Estimated Change in Fair Value of Interests in the Agency MSRs, Non-Agency MSRs and Ginnie Mae MSRs (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 9,693,331 | $ 8,405,938 |
MSRs, MSR Financing Receivables, Excess Spread Financing | Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 6,079,335 | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Agency | Twenty Percent Decrease In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | 6,601,506 | |
Amount | $ 522,171 | |
Percentage | 8.60% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Agency | Twenty Percent Decrease In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 6,363,422 | |
Amount | $ 284,087 | |
Percentage | 4.70% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Agency | Twenty Percent Decrease In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 6,096,639 | |
Amount | $ 17,304 | |
Percentage | 0.30% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Agency | Ten Percent Decrease In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 6,344,320 | |
Amount | $ 264,985 | |
Percentage | 4.40% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Agency | Ten Percent Decrease In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 6,216,274 | |
Amount | $ 136,939 | |
Percentage | 2.30% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Agency | Ten Percent Decrease In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 6,088,185 | |
Amount | $ 8,850 | |
Percentage | 0.10% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Agency | Ten Percent Increase In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 5,835,324 | |
Amount | $ (244,011) | |
Percentage | (4.00%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Agency | Ten Percent Increase In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 5,951,290 | |
Amount | $ (128,045) | |
Percentage | (2.10%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Agency | Ten Percent Increase In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 6,070,197 | |
Amount | $ (9,138) | |
Percentage | (0.20%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Agency | Twenty Percent Increase In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 5,609,934 | |
Amount | $ (469,401) | |
Percentage | (7.70%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Agency | Twenty Percent Increase In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 5,831,466 | |
Amount | $ (247,869) | |
Percentage | (4.10%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Agency | Twenty Percent Increase In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 6,060,853 | |
Amount | $ (18,482) | |
Percentage | (0.30%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 885,053 | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Non-Agency | Twenty Percent Decrease In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | 978,489 | |
Amount | $ 93,436 | |
Percentage | 10.60% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Non-Agency | Twenty Percent Decrease In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 939,289 | |
Amount | $ 54,236 | |
Percentage | 6.10% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Non-Agency | Twenty Percent Decrease In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 900,052 | |
Amount | $ 14,999 | |
Percentage | 1.70% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Non-Agency | Ten Percent Decrease In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 929,530 | |
Amount | $ 44,477 | |
Percentage | 5% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Non-Agency | Ten Percent Decrease In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 911,268 | |
Amount | $ 26,215 | |
Percentage | 3% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Non-Agency | Ten Percent Decrease In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 892,478 | |
Amount | $ 7,425 | |
Percentage | 0.80% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Non-Agency | Ten Percent Increase In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 844,090 | |
Amount | $ (40,963) | |
Percentage | (4.60%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Non-Agency | Ten Percent Increase In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 860,064 | |
Amount | $ (24,989) | |
Percentage | (2.80%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Non-Agency | Ten Percent Increase In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 877,898 | |
Amount | $ (7,155) | |
Percentage | (0.80%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Non-Agency | Twenty Percent Increase In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 806,673 | |
Amount | $ (78,380) | |
Percentage | (8.90%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Non-Agency | Twenty Percent Increase In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 836,525 | |
Amount | $ (48,528) | |
Percentage | (5.50%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Non-Agency | Twenty Percent Increase In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 870,916 | |
Amount | $ (14,137) | |
Percentage | (1.60%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Ginnie Mae | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 2,728,943 | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Ginnie Mae | Twenty Percent Decrease In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | 2,966,767 | |
Amount | $ 237,824 | |
Percentage | 8.70% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Ginnie Mae | Twenty Percent Decrease In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,888,042 | |
Amount | $ 159,099 | |
Percentage | 5.80% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Ginnie Mae | Twenty Percent Decrease In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,774,102 | |
Amount | $ 45,159 | |
Percentage | 1.70% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Ginnie Mae | Ten Percent Decrease In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,842,986 | |
Amount | $ 114,043 | |
Percentage | 4.20% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Ginnie Mae | Ten Percent Decrease In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,804,727 | |
Amount | $ 75,784 | |
Percentage | 2.80% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Ginnie Mae | Ten Percent Decrease In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,751,475 | |
Amount | $ 22,532 | |
Percentage | 0.80% | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Ginnie Mae | Ten Percent Increase In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,623,622 | |
Amount | $ (105,321) | |
Percentage | (3.90%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Ginnie Mae | Ten Percent Increase In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,659,509 | |
Amount | $ (69,434) | |
Percentage | (2.50%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Ginnie Mae | Ten Percent Increase In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,706,569 | |
Amount | $ (22,374) | |
Percentage | (0.80%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Ginnie Mae | Twenty Percent Increase In Measurement Input | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,526,134 | |
Amount | $ (202,809) | |
Percentage | (7.40%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Ginnie Mae | Twenty Percent Increase In Measurement Input | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,595,473 | |
Amount | $ (133,470) | |
Percentage | (4.90%) | |
MSRs, MSR Financing Receivables, Excess Spread Financing | Ginnie Mae | Twenty Percent Increase In Measurement Input | Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value | $ 2,684,392 | |
Amount | $ (44,551) | |
Percentage | (1.60%) |
FAIR VALUE MEASUREMENTS - Sch_6
FAIR VALUE MEASUREMENTS - Schedule of Servicer Advance Investments Valuation (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value inputs, monthly servicing fee | 0.022% |
Servicer Advances | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2.40% |
Servicer Advances | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.048 |
Servicer Advances | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.198 |
Servicer Advances | Mortgage Servicing Amount | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.00199 |
Servicer Advances | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Servicing asset, measurement input | 0.062 |
Servicer Advances | Collateral Weighted Average Maturity (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Collateral weighted average maturity (years) | 21 years 4 months 24 days |
FAIR VALUE MEASUREMENTS - Sch_7
FAIR VALUE MEASUREMENTS - Schedule of Securities Valuation Methodology (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) source | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Number of broker quotation sources | source | 2 |
Government-Backed Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding Face Amount | $ 9,561,293 |
Amortized Cost Basis | 9,362,992 |
Government-Backed Securities | Level 2 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | 9,300,237 |
Government-Backed Securities | Level 2 | Multiple Quotes | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | 9,300,237 |
Government-Backed Securities | Level 2 | Single Quote | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | 0 |
Non-Agency and Other Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding Face Amount | 9,494,742 |
Amortized Cost Basis | $ 779,758 |
Percent of securities | 64.20% |
Fair Value | $ 520,083 |
Non-Agency and Other Securities | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Non agency RMBS, measurement input | 0.053 |
Non-Agency and Other Securities | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Non agency RMBS, measurement input | 0 |
Non-Agency and Other Securities | Minimum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Non agency RMBS, measurement input | 0 |
Non-Agency and Other Securities | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Non agency RMBS, measurement input | 0 |
Non-Agency and Other Securities | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Non agency RMBS, measurement input | 0.202 |
Non-Agency and Other Securities | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Non agency RMBS, measurement input | 0.200 |
Non-Agency and Other Securities | Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Non agency RMBS, measurement input | 0.020 |
Non-Agency and Other Securities | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Non agency RMBS, measurement input | 0.500 |
Non-Agency and Other Securities | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Non agency RMBS, measurement input | 0.076 |
Non-Agency and Other Securities | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Non agency RMBS, measurement input | 0.064 |
Non-Agency and Other Securities | Weighted Average | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Non agency RMBS, measurement input | 0.005 |
Non-Agency and Other Securities | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Non agency RMBS, measurement input | 0.186 |
Non-Agency and Other Securities | Level 3 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | $ 809,539 |
Non-Agency and Other Securities | Level 3 | Multiple Quotes | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | 548,047 |
Non-Agency and Other Securities | Level 3 | Single Quote | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | 261,492 |
Mortgage Backed Securities, Excluding Treasury Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding Face Amount | 19,056,035 |
Amortized Cost Basis | 10,142,750 |
Fair Value | 10,109,776 |
Mortgage Backed Securities, Excluding Treasury Securities | Multiple Quotes | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | 9,848,284 |
Mortgage Backed Securities, Excluding Treasury Securities | Single Quote | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | $ 261,492 |
FAIR VALUE MEASUREMENTS - Sch_8
FAIR VALUE MEASUREMENTS - Schedule of Inputs Used In Valuing Residential Mortgage Loans, Consumer Loans, Mortgage Loans Receivable, Derivatives, and Asset-Backed Securities Issued (Details) $ in Thousands | Jun. 30, 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 | $ 368,866 |
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 | 0.082 |
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 | 0.014 |
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 | 0.149 |
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 | 0.093 |
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 | 0.051 |
Residential mortgage loans HFI, at fair value | Maximum | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans held for investment, measurement input | 0.061 |
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 | 0.480 |
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 | 0.085 |
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 | 0.042 |
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 | 0.039 |
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 | 0.408 |
Consumer Loans Held-for-Investment, At Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans | $ 946,367 |
Consumer Loans Held-for-Investment, At Fair Value | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans | 244,578 |
Consumer Loans Held-for-Investment, At Fair Value | Marcus | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans | $ 701,789 |
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 | 0.092 |
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 | 0.098 |
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 | 0.028 |
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 | 0.870 |
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 | 0.102 |
Consumer Loans Held-for-Investment, At Fair Value | Maximum | Prepayment Rate | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.366 |
Consumer Loans Held-for-Investment, At Fair Value | Maximum | Delinquency | SpringCastle | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Consumer loans, held-for-investment, measurement input | 0.080 |
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 | 0.094 |
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 | 0.077 |
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 | 0.148 |
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 | 0.208 |
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 | 0.052 |
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 | 0.126 |
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 | 0.939 |
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 | 0.753 |
Mortgage Loans Held-for-Investment, at Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage loans, held-for-investment, fair value | $ 2,049,266 |
IRLCs | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, fair value | $ 16,411 |
IRLCs | Minimum | Loan Funding Probability | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0 |
IRLCs | Minimum | Fair Value of Initial Servicing Rights (Bps) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.00092 |
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 | 0.856 |
IRLCs | Weighted Average | Fair Value of Initial Servicing Rights (Bps) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative, measurement input | 0.02429 |
Asset-Backed Securities Issued | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, fair value | $ 205,286 |
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 | 0.148 |
Asset-Backed Securities Issued | Delinquency | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, measurement input | 0.052 |
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 | $ 49,478 |
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 | 0.106 |
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 | 0.019 |
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 | Mortgage Loans Held-for-Investment, at Fair Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage loans, held-for-investment, fair value | $ 1,999,788 |
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 | 0.092 |
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 | $ 13,970 |
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 | 0.082 |
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 | 0.033 |
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 | 0.147 |
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 | 0.086 |
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 | 0.051 |
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 | 0.061 |
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 | 0.480 |
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 | 0.083 |
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 |
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 | 0.030 |
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 | 0.400 |
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 | $ 1,751 |
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 | 0.093 |
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 | 0.187 |
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 | 0.014 |
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 | 3.250 |
FAIR VALUE MEASUREMENTS - Sch_9
FAIR VALUE MEASUREMENTS - Schedule of Carrying Value and Significant Inputs Used in Valuing Notes and Loans Receivable (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Notes receivable | $ 364,977 |
Loans receivable | 29,114 |
Total | $ 394,091 |
Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans receivable, discount rate | 12.80% |
FAIR VALUE MEASUREMENTS - Sc_10
FAIR VALUE MEASUREMENTS - Schedule of Fair Value of the Investments by Fund Type and Ability to Redeem Investments (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value | $ 68,500 |
Investments subject to initial lock-up period | $ 171,800 |
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 |
Maximum | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Redemption Notice Period | 90 days |
Net Asset Value (“NAV”) | Fair Value | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value | $ 343,121 |
Net Asset Value (“NAV”) | Fair Value | Open-ended | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value | 239,711 |
Net Asset Value (“NAV”) | Fair Value | Close-ended | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value | $ 103,410 |
FAIR VALUE MEASUREMENTS - Sc_11
FAIR VALUE MEASUREMENTS - Schedule of Loan Securitizations (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Residential Mortgage Loans | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Investments Fair Value | $ 3,347,335 |
Notes Payable Fair Value | 2,887,692 |
Mortgage Loans Receivable | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Investments Fair Value | 492,103 |
Notes Payable Fair Value | $ 451,682 |
Mortgage Loans Receivable | Discount Rate | Weighted Average | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Measurement inputs | 2.30% |
Mortgage Loans Receivable | Discount Rate | Maximum | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Measurement inputs | 4.90% |
Mortgage Loans Receivable | Discount Rate | Minimum | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Measurement inputs | 2.10% |
Mortgage Loans Receivable | Prepayment Rate | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Measurement inputs | 15% |
Mortgage Loans Receivable | CDR | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Measurement inputs | 0% |
Mortgage Loans Receivable | Loss Severity | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Measurement inputs | 0% |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 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 | 22% |
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 | $ 3.3 |
Real Estate Owned | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Asset fair value adjustment | 1.4 |
Fair Value, Measurements, Nonrecurring | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | 80.7 |
Fair Value, Measurements, Nonrecurring | Total residential mortgage loans, HFS, at fair value and lower of cost or fair value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | 72.9 |
Fair Value, Measurements, Nonrecurring | Real Estate Acquired in Satisfaction of Debt | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Assets, fair value | $ 7.8 |
FAIR VALUE MEASUREMENTS - Sc_12
FAIR VALUE MEASUREMENTS - Schedule of Inputs Used in Valuing Residential Mortgage Loans (Details) - Fair Value, Measurements, Nonrecurring - Fair Value $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | $ 72,894 |
Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.074 |
Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted average life (years) | 5 years 1 month 6 days |
Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.030 |
CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.029 |
Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.304 |
Performing loans | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | $ 53,951 |
Performing loans | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.066 |
Performing loans | Minimum | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted average life (years) | 3 years 7 months 6 days |
Performing loans | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.033 |
Performing loans | Minimum | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.018 |
Performing loans | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.231 |
Performing loans | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.086 |
Performing loans | Maximum | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted average life (years) | 5 years 9 months 18 days |
Performing loans | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.069 |
Performing loans | Maximum | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.162 |
Performing loans | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.480 |
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 6 months |
Performing loans | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.035 |
Performing loans | Weighted Average | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.028 |
Performing loans | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.364 |
Non-performing loans | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | $ 18,943 |
Non-performing loans | Minimum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.093 |
Non-performing loans | Minimum | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted average life (years) | 5 years 8 months 12 days |
Non-performing loans | Minimum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.016 |
Non-performing loans | Minimum | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.014 |
Non-performing loans | Minimum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.149 |
Non-performing loans | Maximum | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.094 |
Non-performing loans | Maximum | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted average life (years) | 6 years 4 months 24 days |
Non-performing loans | Maximum | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.030 |
Non-performing loans | Maximum | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.086 |
Non-performing loans | Maximum | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.273 |
Non-performing loans | Weighted Average | Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.058 |
Non-performing loans | Weighted Average | Weighted Average Life (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted average life (years) | 3 years 8 months 12 days |
Non-performing loans | Weighted Average | Prepayment Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.014 |
Non-performing loans | Weighted Average | CDR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.033 |
Non-performing loans | Weighted Average | Loss Severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financing receivable, measurement input | 0.134 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jun. 28, 2024 | Mar. 31, 2022 | May 31, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Sep. 25, 2020 | ||
Variable Interest Entity [Line Items] | ||||||||||
Debt instrument, face amount | $ 29,014,659,000 | $ 29,014,659,000 | ||||||||
Long-term debt | 30,064,659,000 | 30,064,659,000 | ||||||||
Notes payable | [1] | 9,955,891,000 | 9,955,891,000 | $ 10,360,188,000 | ||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | $ 2,961,000 | $ 6,889,000 | $ 6,413,000 | $ 5,589,000 | ||||||
SpringCastle | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Ownership interest | 46.50% | |||||||||
Purchases | $ 22,000,000 | |||||||||
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 percentage | 100% | 100% | ||||||||
Securitization Notes Payable | 2022-RTL1 Securitization | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Debt instrument, face amount | $ 608,700,000 | |||||||||
Long-term debt | $ 479,200,000 | |||||||||
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] | ||||||||||
Notes payable | $ 350,000,000 | $ 350,000,000 | ||||||||
Notes payable retained by company | 127,800,000 | 127,800,000 | ||||||||
Unsecured notes, net of issuance costs | 221,800,000 | 221,800,000 | ||||||||
Secured Notes and Bonds Payable | Class A Notes | Sculptor | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Notes payable retained by company | 20,000,000 | 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 | 20,000,000 | ||||||||
Secured Notes and Bonds Payable | Subordinated Notes | Sculptor | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Notes payable retained by company | 87,800,000 | 87,800,000 | ||||||||
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 | 52,500,000 | ||||||||
Maximum borrowing capacity per quarter | $ 20,000,000 | |||||||||
Variable interest rate spread | 3% | |||||||||
Unused commitment fee percentage | 1.15% | |||||||||
Related Party | VIE, Consolidated | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Unsecured notes, net of issuance costs | 2,900,000,000 | $ 2,900,000,000 | ||||||||
Related Party | VIE, Consolidated | Retained Interest | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Unsecured notes, net of issuance costs | $ 500,000,000 | $ 500,000,000 | ||||||||
Advance Purchaser | Corporate Joint Venture | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Ownership percentage | 89.30% | 89.30% | ||||||||
Advance Purchaser | Corporate Joint Venture | VIE, Consolidated | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Ownership percentage | 89.30% | 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 June 30, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.1 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.2 billion and $4.7 billion, respectively. See Note 20 for further details. |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of Carrying Value and Classification of the Assets and Liabilities of Consolidated VIEs (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Assets | |||
Servicer advance investments, at fair value | $ 357,220 | $ 376,881 | |
Residential mortgage loans, HFS, at fair value | 3,837,929 | 2,461,865 | |
Assets of consolidated CFEs - investments | [1] | 4,232,803 | 3,751,477 |
Cash and cash equivalents | [1] | 1,238,736 | 1,287,199 |
Total assets | 42,018,889 | 39,717,084 | |
Liabilities | |||
Secured financing agreements | [1] | 15,179,900 | 12,561,283 |
Notes payable of consolidated CFEs | 221,800 | ||
Accrued expenses and other liabilities | [1] | 2,644,728 | 2,065,761 |
Total liabilities | 34,598,275 | 32,616,046 | |
VIE, Consolidated | |||
Assets | |||
Servicer advance investments, at fair value | 357,220 | 367,803 | |
Residential mortgage loans, HFS, at fair value | 407,036 | 1,112,097 | |
Consumer loans | 0 | 285,632 | |
Assets of consolidated CFEs - investments | 4,182,559 | 3,714,037 | |
Cash and cash equivalents | 24,396 | 23,540 | |
Restricted cash | 44,719 | 52,535 | |
Other assets | 67,207 | 10,614 | |
Total assets | 5,083,137 | 5,566,258 | |
Liabilities | |||
Secured financing agreements | 311,537 | 996,845 | |
Secured notes and bonds payable | 262,069 | 510,174 | |
Notes payable of consolidated CFEs | 3,561,175 | 3,155,237 | |
Accrued expenses and other liabilities | 18,742 | 20,132 | |
Total liabilities | 4,153,523 | 4,682,388 | |
VIE, Consolidated | Advance Purchaser | |||
Assets | |||
Servicer advance investments, at fair value | 357,220 | 367,803 | |
Residential mortgage loans, HFS, at fair value | 0 | 0 | |
Consumer loans | 0 | 0 | |
Assets of consolidated CFEs - investments | 0 | 0 | |
Cash and cash equivalents | 5,825 | 5,381 | |
Restricted cash | 7,605 | 8,273 | |
Other assets | 14 | 9 | |
Total assets | 370,664 | 381,466 | |
Liabilities | |||
Secured financing agreements | 0 | 0 | |
Secured notes and bonds payable | 262,069 | 274,404 | |
Notes payable of consolidated CFEs | 0 | 0 | |
Accrued expenses and other liabilities | 2,052 | 2,606 | |
Total liabilities | 264,121 | 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 | |
Assets of consolidated CFEs - investments | 0 | 0 | |
Cash and cash equivalents | 18,571 | 18,159 | |
Restricted cash | 0 | 0 | |
Other assets | 1,313 | 688 | |
Total assets | 19,884 | 18,847 | |
Liabilities | |||
Secured financing agreements | 0 | 0 | |
Secured notes and bonds payable | 0 | 0 | |
Notes payable of consolidated CFEs | 0 | 0 | |
Accrued expenses and other liabilities | 2,008 | 2,240 | |
Total liabilities | 2,008 | 2,240 | |
VIE, Consolidated | Residential Mortgage Loans | |||
Assets | |||
Servicer advance investments, at fair value | 0 | 0 | |
Residential mortgage loans, HFS, at fair value | 407,036 | 1,112,097 | |
Consumer loans | 0 | 0 | |
Assets of consolidated CFEs - investments | 0 | 0 | |
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 5,986 | 6,113 | |
Other assets | 0 | 0 | |
Total assets | 413,022 | 1,118,210 | |
Liabilities | |||
Secured financing agreements | 311,537 | 996,845 | |
Secured notes and bonds payable | 0 | 0 | |
Notes payable of consolidated CFEs | 0 | 0 | |
Accrued expenses and other liabilities | 0 | 5,382 | |
Total liabilities | 311,537 | 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 | 0 | 285,632 | |
Assets of consolidated CFEs - investments | 0 | 0 | |
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 6,301 | |
Other assets | 0 | 4,325 | |
Total assets | 0 | 296,258 | |
Liabilities | |||
Secured financing agreements | 0 | 0 | |
Secured notes and bonds payable | 0 | 235,770 | |
Notes payable of consolidated CFEs | 0 | 0 | |
Accrued expenses and other liabilities | 0 | 1,507 | |
Total liabilities | 0 | 237,277 | |
VIE, Consolidated | Sculptor Loan Financing Partners | |||
Assets | |||
Servicer advance investments, at fair value | 0 | 0 | |
Residential mortgage loans, HFS, at fair value | 0 | 0 | |
Consumer loans | 0 | 0 | |
Assets of consolidated CFEs - investments | 0 | 0 | |
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 5,104 | 0 | |
Other assets | 41,660 | 0 | |
Total assets | 46,764 | 0 | |
Liabilities | |||
Secured financing agreements | 0 | 0 | |
Secured notes and bonds payable | 0 | 0 | |
Notes payable of consolidated CFEs | 0 | 0 | |
Accrued expenses and other liabilities | 24 | 0 | |
Total liabilities | 24 | 0 | |
VIE, Consolidated | Notes Payable of CFEs - 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 | |
Assets of consolidated CFEs - investments | 492,103 | 353,594 | |
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 4,074 | 7,572 | |
Other assets | 23,427 | 4,532 | |
Total assets | 519,604 | 365,698 | |
Liabilities | |||
Secured financing agreements | 0 | 0 | |
Secured notes and bonds payable | 0 | 0 | |
Notes payable of consolidated CFEs | 451,682 | 318,998 | |
Accrued expenses and other liabilities | 548 | 371 | |
Total liabilities | 452,230 | 319,369 | |
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 | |
Assets of consolidated CFEs - investments | 3,347,335 | 3,038,587 | |
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 11,851 | 6,263 | |
Other assets | 0 | 0 | |
Total assets | 3,359,186 | 3,044,850 | |
Liabilities | |||
Secured financing agreements | 0 | 0 | |
Secured notes and bonds payable | 0 | 0 | |
Notes payable of consolidated CFEs | 2,887,692 | 2,618,082 | |
Accrued expenses and other liabilities | 12,185 | 6,263 | |
Total liabilities | 2,899,877 | 2,624,345 | |
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 | |
Assets of consolidated CFEs - investments | 343,121 | 321,856 | |
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 10,099 | 18,013 | |
Other assets | 793 | 1,060 | |
Total assets | 354,013 | 340,929 | |
Liabilities | |||
Secured financing agreements | 0 | 0 | |
Secured notes and bonds payable | 0 | 0 | |
Notes payable of consolidated CFEs | 221,801 | 218,157 | |
Accrued expenses and other liabilities | 1,925 | 1,763 | |
Total liabilities | $ 223,726 | $ 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 June 30, 2024 and December 31, 2023, total assets of such consolidated VIEs were $5.1 billion and $5.6 billion, respectively, and total liabilities of such consolidated VIEs were $4.2 billion and $4.7 billion, respectively. See Note 20 for further details. |
VARIABLE INTEREST ENTITIES - _2
VARIABLE INTEREST ENTITIES - Schedule of Non-Consolidated VIEs (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Variable Interest Entity [Line Items] | ||
Carrying value of commercial real estate held within unconsolidated VIEs | $ 801,964 | $ 821,319 |
Carrying value of Rithm Capital’s investments in unconsolidated commercial real estate VIEs | 244,222 | 173,882 |
Variable Interest Entity, Not Primary Beneficiary | Real Estate Bonds | ||
Variable Interest Entity [Line Items] | ||
Residential mortgage loan UPB and other collateral | $ 7,761,760 | $ 8,237,692 |
Weighted average delinquency | 5.30% | 5.30% |
Net credit losses | $ 161,752 | $ 162,061 |
Face amount of debt held by third parties | 7,101,285 | 7,596,408 |
Carrying value of bonds retained by Rithm Capital | 583,607 | 543,447 |
Year to date cash flows received by Rithm Capital on these bonds | $ 43,576 | 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 | $ 133,458 | 66,652 |
Carrying value of Rithm Capital’s investments in unconsolidated commercial real estate VIEs | $ 41,721 | $ 29,210 |
VARIABLE INTEREST ENTITIES - _3
VARIABLE INTEREST ENTITIES - Schedule of Non-Consolidated VIEs with Variable Interest (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Net assets of unconsolidated VIEs in which the Company has a variable interest | $ 12,486,344 | $ 12,782,124 |
Maximum risk of loss as a result of the Company’s involvement with unconsolidated VIEs: | ||
Unearned income and fees | 30,284 | 37,468 |
Income and fees receivable | 14,717 | 43,250 |
Investments | 546,490 | 533,026 |
Unfunded commitments | 186,109 | 207,575 |
Other commitments | 24,364 | 0 |
Maximum Exposure to Loss | 801,964 | 821,319 |
Employees and Executive Managing Directors | ||
Maximum risk of loss as a result of the Company’s involvement with unconsolidated VIEs: | ||
Unfunded commitments | $ 111,300 | $ 97,500 |
VARIABLE INTEREST ENTITIES - _4
VARIABLE INTEREST ENTITIES - Schedule of Others’ Interests in the Equity of Consolidated Subsidiaries and Others’ Interests in the Net Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 28, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Noncontrolling Interest [Line Items] | |||||||||
Total Consolidated Equity | $ 7,420,614 | $ 7,194,684 | $ 7,420,614 | $ 7,194,684 | $ 7,243,372 | $ 7,101,038 | $ 6,954,543 | $ 7,010,068 | |
Others' Interest in Equity of Consolidated Subsidiary | 94,021 | 94,021 | $ 94,096 | ||||||
Net income (loss) | 238,517 | 386,685 | 526,004 | 476,634 | |||||
Others’ interest in net income (loss) of consolidated subsidiaries | 2,961 | 6,889 | 6,413 | 5,589 | |||||
Operating Segments | Asset Management | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Others' Interest in Equity of Consolidated Subsidiary | 44,383 | 44,383 | |||||||
Net income (loss) | 25,964 | 0 | (13) | 0 | |||||
Others’ interest in net income (loss) of consolidated subsidiaries | $ 835 | $ 0 | $ 2,195 | $ 0 | |||||
Consumer Loan Companies | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Ownership interest | 46.50% | ||||||||
Purchase of consumer loans | $ 22,000 | ||||||||
VIE, Consolidated | Advance Purchaser | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Others' Ownership Interest | 10.70% | 10.70% | 10.70% | ||||||
VIE, Consolidated | Advance Purchaser | Weighted Average | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Others' Ownership Interest | 10.70% | 10.70% | 10.70% | 10.70% | |||||
VIE, Consolidated | Newrez Joint Ventures | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Others' Ownership Interest | 49.50% | 49.50% | 49.50% | ||||||
VIE, Consolidated | Newrez Joint Ventures | Weighted Average | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Others' Ownership Interest | 49.50% | 49.50% | 49.50% | 49.50% | |||||
VIE, Consolidated | Consumer Loan Companies | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Others' Ownership Interest | 0% | 0% | 46.50% | ||||||
VIE, Consolidated | Consumer Loan Companies | Weighted Average | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Others' Ownership Interest | 46.50% | 46.50% | 46.50% | 46.50% | |||||
VIE, Consolidated | Excess MSRs | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Others' Ownership Interest | 20% | 20% | 0% | ||||||
VIE, Consolidated | Excess MSRs | Weighted Average | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Others' Ownership Interest | 20% | 0% | 20% | 0% | |||||
VIE, Consolidated | Advance Purchaser | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Total Consolidated Equity | $ 106,544 | $ 106,544 | $ 104,458 | ||||||
Others' Interest in Equity of Consolidated Subsidiary | 11,389 | 11,389 | 11,157 | ||||||
Net income (loss) | (1,149) | $ 7,927 | 8,381 | $ 6,557 | |||||
Others’ interest in net income (loss) of consolidated subsidiaries | (123) | 845 | 895 | 699 | |||||
VIE, Consolidated | Newrez Joint Ventures | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Total Consolidated Equity | 17,876 | 17,876 | 16,607 | ||||||
Others' Interest in Equity of Consolidated Subsidiary | 8,849 | 8,849 | 8,220 | ||||||
Net income (loss) | 2,052 | 781 | 2,164 | 695 | |||||
Others’ interest in net income (loss) of consolidated subsidiaries | 1,016 | 386 | 1,071 | 344 | |||||
VIE, Consolidated | Consumer Loan Companies | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Total Consolidated Equity | 54,249 | 54,249 | 72,361 | ||||||
Others' Interest in Equity of Consolidated Subsidiary | 0 | 0 | 33,748 | ||||||
Net income (loss) | (7,318) | 12,168 | (5,127) | 9,776 | |||||
Others’ interest in net income (loss) of consolidated subsidiaries | (3,403) | 5,658 | (2,384) | 4,546 | |||||
VIE, Consolidated | Excess MSRs | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Total Consolidated Equity | 147,000 | 147,000 | 0 | ||||||
Others' Interest in Equity of Consolidated Subsidiary | 29,400 | 29,400 | 0 | ||||||
Net income (loss) | 23,182 | 0 | 23,182 | 0 | |||||
Others’ interest in net income (loss) of consolidated subsidiaries | 4,636 | 0 | 4,636 | 0 | |||||
VIE, Consolidated | Asset Management | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Total Consolidated Equity | 740,265 | 740,265 | 673,523 | ||||||
Others' Interest in Equity of Consolidated Subsidiary | 44,383 | 44,383 | $ 40,971 | ||||||
Net income (loss) | 25,964 | 0 | (13) | 0 | |||||
Others’ interest in net income (loss) of consolidated subsidiaries | $ 835 | $ 0 | $ 2,195 | $ 0 |
EXPENSES, REALIZED AND UNREAL_3
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES), NET AND OTHER - Schedule of Other Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Property and maintenance | ||||
Schedule Of Other Income [Line Items] | ||||
Total other revenues | $ 29,955 | $ 33,117 | $ 62,335 | $ 66,755 |
Rental | ||||
Schedule Of Other Income [Line Items] | ||||
Total other revenues | 18,920 | 17,743 | 37,869 | 35,866 |
Other | ||||
Schedule Of Other Income [Line Items] | ||||
Total other revenues | 7,625 | 8,349 | 14,644 | 14,731 |
Other revenues | ||||
Schedule Of Other Income [Line Items] | ||||
Total other revenues | $ 56,500 | $ 59,209 | $ 114,848 | $ 117,353 |
EXPENSES, REALIZED AND UNREAL_4
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES), NET AND OTHER - Schedule of General and Administrative Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | ||||
Legal and professional | $ 26,941 | $ 21,385 | $ 48,430 | $ 34,140 |
Loan origination | 17,541 | 12,323 | 32,976 | 24,080 |
Occupancy | 16,234 | 16,382 | 32,149 | 34,748 |
Subservicing | 17,690 | 40,625 | 37,118 | 75,881 |
Loan servicing | 3,502 | 2,930 | 9,092 | 6,230 |
Property and maintenance | 30,022 | 23,935 | 62,286 | 47,970 |
Information technology | 47,999 | 33,140 | 87,803 | 68,108 |
Other | 47,194 | 31,198 | 94,463 | 58,240 |
Total general and administrative expenses | $ 207,123 | $ 181,918 | $ 404,317 | $ 349,397 |
EXPENSES, REALIZED AND UNREAL_5
EXPENSES, REALIZED AND UNREALIZED GAINS (LOSSES), NET AND OTHER - Schedule of Components of Other Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | ||||
Real estate and other securities | $ (87,979) | $ (122,578) | $ (190,942) | $ (38,727) |
Residential mortgage loans and REO | 22,623 | (10,123) | 26,149 | 7,974 |
Derivative and hedging instruments | 17,054 | 215,952 | 58,986 | 64,946 |
Notes and bonds payable | (2,857) | 4,549 | (2,631) | 2,049 |
Consolidated CFEs | 33,384 | (17,441) | 49,797 | (5,197) |
Other | 3,006 | 6,174 | (974) | (20,417) |
Realized and unrealized gains (losses), net | (14,769) | 76,533 | (59,615) | 10,628 |
Other income (loss), net | 19,042 | (47,898) | 26,968 | (73,064) |
Total other income (loss) | $ 4,273 | $ 28,635 | $ (32,647) | $ (62,436) |
ASSET MANAGEMENT REVENUES - Sch
ASSET MANAGEMENT REVENUES - Schedule of Composition of Asset Management Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Other asset management income | $ 0 | $ 4,909 | ||
Total asset management revenues | 1,229,407 | $ 1,110,339 | 2,490,025 | $ 1,935,127 |
Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 59,859 | 116,989 | ||
Incentive income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 49,574 | 63,395 | ||
Asset management revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total asset management revenues | $ 109,433 | $ 0 | $ 185,293 | $ 0 |
ASSET MANAGEMENT REVENUES - S_2
ASSET MANAGEMENT REVENUES - Schedule of Income and Fees Receivable (Details) - Genesis - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Disaggregation of Revenue [Line Items] | ||
Total income and fees receivable | $ 55,104 | $ 59,134 |
Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total income and fees receivable | 23,064 | 23,757 |
Incentive income | ||
Disaggregation of Revenue [Line Items] | ||
Total income and fees receivable | $ 32,040 | $ 35,377 |
ASSET MANAGEMENT REVENUES - S_3
ASSET MANAGEMENT REVENUES - Schedule of Unearned Income and Fees (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Disaggregation of Revenue [Line Items] | ||
Total unearned income and fees | $ 30,284 | $ 37,468 |
Genesis | ||
Disaggregation of Revenue [Line Items] | ||
Total unearned income and fees | 30,284 | 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 | $ 30,283 | $ 37,467 |
EQUITY AND EARNINGS PER SHARE -
EQUITY AND EARNINGS PER SHARE - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 18, 2024 | Aug. 05, 2022 | Sep. 30, 2021 | Feb. 29, 2020 | Aug. 31, 2019 | Jul. 31, 2019 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 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 | 2,000,000,000 | |||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Number of shares issued (in shares) | 51,964,000 | 51,964,000 | ||||||||||
Shares repurchased (in shares) | 0 | |||||||||||
Dividends declared on preferred stock (in dollars per share) | $ 1.76 | $ 1.76 | $ 3.51 | $ 3.51 | ||||||||
Number of options (in shares) | 21,473,990 | 21,473,990 | 21,473,990 | |||||||||
Director | ||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||
Number of options (in shares) | 1,000 | 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 | $ 0.94 | 0.94 | |||||||
Interest rate | 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 | $ 0.89 | 0.89 | |||||||
Interest rate | 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 | $ 0.80 | 0.80 | |||||||
Interest rate | 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 | $ 0.88 | $ 0.88 | |||||||
Interest rate | 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) | 6,100,000 | |||||||||||
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 | 6 Months Ended | 12 Months Ended | ||||||
Jun. 18, 2024 | Sep. 30, 2021 | Feb. 29, 2020 | Aug. 31, 2019 | Jul. 31, 2019 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 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 | $ 1,299,104 | |||||||
Carrying Value | $ 1,257,254 | $ 1,257,254 | ||||||||
Dividends Declared (in dollars per share) | $ 1.76 | $ 1.76 | $ 3.51 | $ 3.51 | ||||||
Liquidation preference per share (in dollars per share) | $ 25 | $ 25 | ||||||||
Series A, 7.50% issued July 2019 | ||||||||||
Class of Stock [Line Items] | ||||||||||
Interest rate | 7.50% | |||||||||
Number of shares issued (in shares) | 6,200 | 6,200 | ||||||||
Liquidation Preference | $ 155,002 | $ 155,002 | ||||||||
Issuance Discount | 3.15% | |||||||||
Carrying Value | $ 149,822 | $ 149,822 | ||||||||
Dividends Declared (in dollars per share) | $ 0.47 | $ 0.47 | 0.47 | $ 0.94 | 0.94 | |||||
Series B, 7.125% issued August 2019 | ||||||||||
Class of Stock [Line Items] | ||||||||||
Interest rate | 7.125% | |||||||||
Number of shares issued (in shares) | 11,261 | 11,261 | ||||||||
Liquidation Preference | $ 281,518 | $ 281,518 | ||||||||
Issuance Discount | 3.15% | |||||||||
Carrying Value | $ 272,654 | $ 272,654 | ||||||||
Dividends Declared (in dollars per share) | 0.45 | $ 0.45 | 0.45 | $ 0.89 | 0.89 | |||||
Series C, 6.375% issued February 2020 | ||||||||||
Class of Stock [Line Items] | ||||||||||
Interest rate | 6.375% | |||||||||
Number of shares issued (in shares) | 15,903 | 15,903 | ||||||||
Liquidation Preference | $ 397,584 | $ 397,584 | ||||||||
Issuance Discount | 3.15% | |||||||||
Carrying Value | $ 385,289 | $ 385,289 | ||||||||
Dividends Declared (in dollars per share) | 0.40 | $ 0.40 | 0.40 | $ 0.80 | 0.80 | |||||
Series D, 7.00% issued September 2021 | ||||||||||
Class of Stock [Line Items] | ||||||||||
Interest rate | 7% | |||||||||
Number of shares issued (in shares) | 18,600 | 18,600 | ||||||||
Liquidation Preference | $ 465,000 | $ 465,000 | ||||||||
Issuance Discount | 3.15% | |||||||||
Carrying Value | $ 449,489 | $ 449,489 | ||||||||
Dividends Declared (in dollars per share) | $ 0.44 | $ 0.44 | $ 0.44 | $ 0.88 | $ 0.88 |
EQUITY AND EARNINGS PER SHARE_3
EQUITY AND EARNINGS PER SHARE - Schedule of Common Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 18, 2024 | Mar. 20, 2024 | Dec. 12, 2023 | Sep. 14, 2023 | Jun. 23, 2023 | Mar. 17, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Dividends Payable [Line Items] | ||||||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.50 | ||||||
Total amounts distributed | $ 122.4 | $ 120.9 | $ 120.8 | $ 120.8 | $ 120.8 | $ 120.8 | ||||
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 | Jun. 30, 2024 USD ($) $ / shares shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share price (in dollars per share) | $ / shares | $ 10.91 |
Number of unexercised options (in shares) | 21,473,990 |
Options exercisable (in shares) | 21,473,990 |
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) | 7,050,335 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 9.38 |
Intrinsic value of exercisable options | $ | $ 10,810 |
EQUITY AND EARNINGS PER SHARE_5
EQUITY AND EARNINGS PER SHARE - Schedule of Basic and Diluted Earnings Per Share Calculations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net income (loss) | $ 238,517 | $ 386,685 | $ 526,004 | $ 476,634 |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 2,961 | 6,889 | 6,413 | 5,589 |
Dividends on preferred stock | 22,395 | 22,395 | 44,790 | 44,790 |
Net income (loss) attributable to common stockholders - basic | 213,161 | 357,401 | 474,801 | 426,255 |
Net income (loss) attributable to common stockholders - diluted | $ 213,161 | $ 357,401 | $ 474,801 | $ 426,255 |
Basic weighted average shares of common stock outstanding (in shares) | 486,721,836 | 483,091,792 | 485,029,307 | 480,642,680 |
Common stock purchase warrants (in shares) | 0 | 0 | 0 | 2,223,336 |
Diluted weighted average shares of common stock outstanding (in shares) | 490,981,282 | 483,376,961 | 488,456,392 | 483,113,400 |
Basic earnings (loss) per share attributable to common stockholders (in dollars per share) | $ 0.44 | $ 0.74 | $ 0.98 | $ 0.89 |
Diluted earnings (loss) per share attributable to common stockholders (in dollars per share) | $ 0.43 | $ 0.74 | $ 0.97 | $ 0.88 |
Antidilutive shares (in shares) | 0 | 0 | 0 | 0 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Effect of dilutive securities (in shares) | 1,078,804 | 0 | 988,302 | 0 |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Effect of dilutive securities (in shares) | 120,151 | 285,169 | 197,452 | 247,384 |
Time-based restricted stock unit awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Effect of dilutive securities (in shares) | 1,488,716 | 0 | 1,152,513 | 0 |
Performance-based restricted stock unit awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Effect of dilutive securities (in shares) | 1,295,297 | 0 | 950,579 | 0 |
Time Vesting Class B Profits Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Effect of dilutive securities (in shares) | 134,776 | 0 | 67,388 | 0 |
Performance Vesting Class B Profits Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Effect of dilutive securities (in shares) | 141,702 | 0 | 70,851 | 0 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Current: | ||||
Federal | $ 1,138 | $ 0 | $ 1,750 | $ 16 |
State and local | 2,130 | 99 | 2,527 | 122 |
Foreign | 1,928 | 0 | 3,704 | 0 |
Total current income tax expense (benefit) | 5,196 | 99 | 7,981 | 138 |
Deferred: | ||||
Federal | 39,219 | 48,232 | 115,672 | 34,064 |
State and local | 6,698 | 8,199 | 19,934 | 5,522 |
Foreign | 535 | 0 | 1,473 | 0 |
Total deferred income tax expense (benefit) | 46,452 | 56,431 | 137,079 | 39,586 |
Total income tax expense (benefit) | $ 51,648 | $ 56,530 | $ 145,060 | $ 39,724 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Income Tax Disclosure [Abstract] | ||
Deferred tax liability | $ 950,986 | $ 801,857 |
Deferred tax asset | $ 283,100 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Feb. 27, 2024 USD ($) property | Jun. 21, 2023 USD ($) property | Jun. 30, 2024 USD ($) property |
Loss Contingencies [Line Items] | |||
Estimated liability, representation and warranties | $ 49.4 | ||
Residential mortgage loan repurchase liability | 1,900 | ||
Committed to fund | 1.5 | ||
Unfunded capital commitments | 246 | ||
Fair Value | 68.5 | ||
Consolidated Funds Commitments | |||
Loss Contingencies [Line Items] | |||
Unfunded capital commitments | 108.3 | ||
Collateralized Loan Obligations | |||
Loss Contingencies [Line Items] | |||
Unfunded capital commitments | 137.7 | ||
Director | |||
Loss Contingencies [Line Items] | |||
Contributions to parent company | $ 111.3 | ||
Single Family | |||
Loss Contingencies [Line Items] | |||
Number of units completed | property | 332 | ||
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 | $ 938.3 | ||
Unfunded Loan Commitment | Consumer Portfolio Segment | Consumer Loan Companies | |||
Loss Contingencies [Line Items] | |||
Financing receivable | $ 162 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | |||
Jun. 11, 2024 | Jul. 31, 2023 | Jun. 30, 2024 | Mar. 31, 2024 | Mar. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Alternative investment | $ 68,500 | ||||
Total residential mortgage loans, HFS | |||||
Related Party Transaction [Line Items] | |||||
Unpaid principal balance | 83,301 | ||||
Great Ajax Corp. | |||||
Related Party Transaction [Line Items] | |||||
Percentage of common stock outstanding | 6.30% | ||||
Great Ajax Corp. | Total residential mortgage loans, HFS | |||||
Related Party Transaction [Line Items] | |||||
Unpaid principal balance | $ 245,300 | ||||
Newrez Joint Ventures | Great Ajax Corp. | Total residential mortgage loans, HFS | |||||
Related Party Transaction [Line Items] | |||||
Unpaid principal balance | 562,100 | ||||
Previously serviced amount | $ 2,900,000 | ||||
Loan fee, performing and non performing loans (as a percent) | 0.54% | ||||
Fair market value of the REO (as a percent) | 1% | ||||
Purchase price of REO (as a percent) | 1% | ||||
Carrying value of bonds retained by Rithm Capital | $ 19,300 | ||||
Related Party | Great Ajax Corp. | |||||
Related Party Transaction [Line Items] | |||||
Number of shares issued (in shares) | 2.9 | ||||
Net proceeds | $ 14,000 | ||||
Related Party | Loan Agreement | Genesis | |||||
Related Party Transaction [Line Items] | |||||
Loan agreement amount | $ 86,400 | ||||
Financing receivable term | 25 months | ||||
Related Party | Structured Alternative Investment Solution | Sculptor | |||||
Related Party Transaction [Line Items] | |||||
Alternative investment | $ 350,000 | ||||
Alternative investment amount | $ 127,800 | ||||
Executive Managing Directors, Employees, and Other Related Parties | Related Party Assets under Management | |||||
Related Party Transaction [Line Items] | |||||
Assets under management, carrying amount | $ 753,200 | ||||
Percentage not charged management fees or incentive income | 55% |