Rithm Capital's Q3 Earnings Delivered Strong Returns From Origination Side

Rithm Capital Corp., the parent organization of Newrez, has announced its third-quarter earnings for 2024. 

Rithm’s Q3 2024 financial highlights include a net income of $97 million, or $0.20 per diluted common share, down from $213.2 million in the second quarter of this year. The company reported a book value per common share of $12.31. 

“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,” Rithm Capital Chairman, CEO and President Michael Nierenberg said. “Our core businesses are consistently creating value for shareholders through earnings, which is either distributed as dividends or reinvested back into compounding our growth, diversifying earnings and positioning the business for future success to benefit our shareholders and LPs alike.”

Rithm’s total mortgage servicing rights portfolio totaled $878 billion in unpaid principal balance (UPB) as of September 30, 2024, compared to $868 billion in UPB at the end of Q2 2024.

Newrez's servicing portfolio, however, hit $755 billion in UPB, up 34% from last year, with third-party servicing growing 116% to $233 billion. Loan originations also rose to $15.9 billion, a 9% increase from last quarter and 43% from last year.

Newrez generated a pre-tax income of $245.9 million for originations and servicing, up from $227.6 million in Q2 2024. The business also generated a 24% pre-tax return on equity and recorded an origination-funded production volume of $15.9 billion, an increase of 9% from Q2 2024 and up 43% year-over-year.

Rithm reported $5.6 billion in dividends since its inception in 2013 and an economic return of 191%, as of Sept. 30.