Rithm Capital Corporation has announced an expansion of its long-standing partnership with Valon Technologies, further integrating Valon’s AI-native mortgage servicing platform into operations at Newrez, a Rithm subsidiary. The expanded collaboration is aimed at modernizing mortgage servicing systems and enhancing customer experience for more than four million homeowners.
Rithm, a global alternative asset manager, was an early investor in Valon, and is increasing its commitment with a significant long-term minority equity stake. Under the agreement, Newrez will begin transitioning to Valon’s proprietary operating system, ValonOS, in 2027. The platform uses artificial intelligence to centralize loan servicing data, decision logic, compliance context, and exception handling into a single system, giving mortgage servicers real-time visibility and enhanced automation capabilities.
According to Rithm CEO Michael Nierenberg, the partnership combines Rithm’s investment expertise, Newrez’s operational leadership, and Valon’s technological innovation to bring “operational efficiency, scalability, and innovation” to the servicing of mortgage loans across the industry’s roughly $13 trillion portfolio of home loans. He emphasized that this type of early-stage technology integration aligns with Rithm’s long-term value creation strategy.
“Today marks an important milestone as we accelerate our growth and elevate the standard for innovation in the mortgage industry,” said Baron Silverstein, president of Newrez. “Newrez and Valon are aligned in our mission to deliver the most seamless and intuitive mortgage servicing experience possible. Powered by advanced technology and deep operational expertise, this partnership strengthens our platform and brings that ambition to life for Newrez’s over four million homeowners."
Valon’s CEO Andrew Wang noted that deploying ValonOS at scale with Newrez — one of the nation’s largest servicers — validates the platform’s ability to operate in highly regulated environments. He positioned the system as a foundational tool for broader transformation across financial services, extending beyond mortgage servicing to other regulated industries.
The announcement highlights a growing trend among mortgage lenders and servicers to adopt AI-driven systems to improve efficiency, compliance, and customer responsiveness in an industry historically dependent on legacy technology.
