Rithm Capital Corp. Reports Net Income Of $213.2 Million In Q2 2024
Newrez, Rithm's mortgage company, recorded an origination and servicing segment pre-tax income of $247.7 million.
Rithm Capital Corp., the parent organization of Newrez, today announced its second-quarter earnings for 2024.
Rithm’s Q2 2024 financial highlights include a net income of $213.2 million, or $0.43 per diluted common share, as well as a book value per common share of $12.39.
"We are pleased to have delivered another strong performance this quarter," said the Chairman, Chief Executive Officer, and President of Rithm Capital, Michael Nierenberg. "Our core businesses are capitalizing on attractive opportunities in an increasingly competitive market, while we continue to grow our asset management capabilities and realize the benefits of our expanding partnerships. Looking forward, I believe our diversified platform will enable Rithm to continue its trajectory as a leading alternative asset manager and deliver strong results for shareholders and LPs."
Rithm’s total mortgage servicing rights portfolio totaled $645 billion in unpaid principal balance (UPB) at June 30, 2024, compared to $587 billion in UPB tracked in Q1 2024.
"Looking at the macro picture, we are extremely well-positioned for the future and the expectations, and with the expectations of the Fed lowering rates beginning in September, this bodes very well for our company," Nierenberg said.
For Newrez in particular, Rithm recorded an origination & servicing segment pre-tax income of $247.7 million. Newrez also generated a 23% pre-tax return on equity on $4.0 billion of equity.
Newrez saw an origination-funded production volume of $14.6 billion, an increase of 35% from Q1 2024 and 47% compared to the same time last year.
The Newrez earnings section also mentioned Rithm’s acquisition of Computershare Mortgage Services Inc. and certain affiliated companies, including Specialized Loan Servicing LLC., which closed on May 1, 2024, for a cash purchase price of approximately $708.0 million.
The acquisition included approximately $56 billion in UPB of MSRs and $98 billion of third-party servicing UPB, along with Specialized Loan Servicing’s origination servicing business.
"We wrapped up another great quarter here at Newrez and we're firmly in growth mode, gaining market share and just focused on disciplined management and also expansion of our third-party client base," said Baron Silverstein, president of Newrez. "We're now the second largest nonbank servicer and the fifth largest lender in the industry."
Silverstein continued, "Our originations business also performed well in spite of overall margin pressures, with production volume up 35% quarter-over-quarter, led by our correspondent and wholesale channels but also benefited from the addition of co-issue capabilities and growth in both non-QM and home equity originations overall."
At the end of June 2024, Rithm reported total cash and liquidity of $1.5 billion. On Wednesday morning, the company's stock was trading at $11.48, reflecting a 0.44% decline following the earnings report.
Headquartered in New York City, Rithm Capital is an asset management firm specializing in real estate and financial services. The company’s investment portfolio encompasses operating entities, including origination and servicing platforms managed through its wholly-owned subsidiaries: Newrez LLC, Caliber Home Loans Inc., and Genesis Capital LLC.