“Rithm had another terrific quarter in Q3 with the entire business demonstrating both operational resilience and earnings durability, which are increasingly the hallmarks of our well-balanced model,” said Michael Nierenberg, chairman, CEO, and president of Rithm Capital.
Newrez, Rithm’s origination and servicing arm, reported a pre-tax income reaching $245.9 million, excluding a mark-to-market loss of $558.2 million on mortgage servicing rights. This marked an increase from the previous quarter’s pre-tax income of $227.6 million, producing a 24% return on equity (ROE) with $4.3 billion in equity.
Newrez’s servicing portfolio reached $755 billion in unpaid principal balance (UPB), a 34% increase from the same period last year. This includes $233 billion in third-party servicing, which grew 116% year-over-year. The company also saw an uptick in loan originations, with $15.9 billion in funded production, reflecting a 9% increase from the previous quarter and a 43% increase from the previous year.
Genesis, Rithm’s mortgage loans receivable division, posted a pre-tax income of $35.1 million, achieving an 18% pre-tax ROE on $743 million in equity. Genesis originated $761 million in loans this quarter, marking a 26% year-over-year growth. Additionally, the segment completed its second-largest residential transitional loan securitization at $450 million, focusing on new construction projects.
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Source: mpamag.com