Financial Data and Key Metrics Changes - In 2025, the company reported $163.4 billion in originations, a 17% increase from 2024, with net income of $244 million, which included a $435 million MSR write-down [3][4] - For Q4 2025, the company achieved $49.6 billion in originations, up 28% year-over-year, with a net income of $164.5 million, including a $28.8 million write-down of MSRs [4][8] - Adjusted EBITDA for the full year was over $697 million, while Q4 adjusted EBITDA was $232.8 million [4][8] Business Line Data and Key Metrics Changes - The servicing income for 2025 was $725 million, an increase from $637 million in 2024 [9] - The company maintained a MSR portfolio with a UPB of approximately $241 billion and a fair value of $4.1 billion [8] Market Data and Key Metrics Changes - The company noted a growing trend of consumers entering the broker channel, driven by factors such as rate shopping and the ability of mortgage brokers to guide them [6] Company Strategy and Development Direction - The company is focused on bringing servicing in-house and completing the acquisition of Two Harbors, which are seen as strategic inflection points for operational improvements and market dominance [5][6] - The company aims to enhance its broker channel growth and consumer retention through a closed-loop platform that integrates various services [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the mortgage and housing industry, citing support from government entities aimed at improving affordability and lowering rates [12] - The company anticipates maintaining its number one position in the market and is excited about the potential of AI to drive efficiency and production [12][14] Other Important Information - The company reported total revenue of $3.2 billion for 2025, up from $2.7 billion in 2024 [8][9] - The total equity at the end of Q4 was $1.6 billion, with total available liquidity of $1.8 billion [9][10] Summary of Q&A Session - The management did not conduct a traditional Q&A session but encouraged stakeholders to refer to SEC filings for more detailed information about the business and strategy [13]

Rithm Capital Quarterly Supplement Q4 2025 Q4 2025 Quarterly Supplement Will/EH reviewed Will reviewed Not reviewed Disclaimers IN GENERAL. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the "Presentation." FORWARD-LOOKING STATEMENTS. Certain statements regarding Rithm Capital Corp. (together with its subsidiaries, "Rithm," "Rithm Capital," the "Company" ...

Core Insights - Flagstar Bank reported significant improvements in its financial performance for the third quarter of 2025, with a net loss of $36 million, a notable reduction from previous quarters and the same period last year [3][4][5] Financial Performance - The net loss attributable to common stockholders for Q3 2025 was $45 million, or $0.11 per diluted share, representing a 44% improvement from Q2 2025 and an 86% improvement from Q3 2024 [4][5] - For the first nine months of 2025, the net loss was $206 million compared to $930 million for the same period in 2024, with a loss attributable to common stockholders of $231 million or $0.56 per diluted share [5] Earnings and Revenue - Adjusted net loss for Q3 2025 was $31 million, a 50% improvement from Q2 2025 and an 89% improvement from Q3 2024 [20] - Net interest income for Q3 2025 totaled $425 million, up 1% from Q2 2025 but down 17% year-over-year [23] - Non-interest income in Q3 2025 was $94 million, a 22% increase from Q2 2025 but a 17% decrease from Q3 2024 [37] Asset Quality and Loans - Total criticized and classified loans decreased by $2.8 billion or 19% since December 31, 2024, indicating improved asset quality [10][12] - C&I loans increased by $448 million or 3% from the prior quarter, with new loan originations rising by 41% [13][16] Capital and Liquidity - The CET1 capital ratio improved to 12.45%, remaining at or above peer levels, indicating strong capital position [12] - Total assets as of September 30, 2025, were $91.7 billion, down 1% from the previous quarter and down 8% from the end of 2024 [15] Operating Expenses - Total non-interest expense for Q3 2025 was $522 million, up 2% from Q2 2025 but down 27% year-over-year [43] - Adjusted operating expenses for Q3 2025 were $457 million, down 1% from Q2 2025 and down approximately 30% year-over-year [43][46] Strategic Initiatives - The company completed a holding company reorganization on October 17, 2025, simplifying its corporate structure and reducing regulatory burdens [11] - The focus on transforming Flagstar into a top-performing regional bank continues, with a strong emphasis on customer-centric culture and effective risk management [11]

Core Insights - Onity Group Inc. reported strong second quarter results for 2025, highlighting sustained profitability and growth despite market challenges [4][8] - The company emphasized its commitment to delivering strong shareholder returns through a diversified and technology-enabled business model [4] Financial Performance - Net income attributable to common stockholders was $20 million, with diluted EPS of $2.40 and a return on equity (ROE) of 17% [8] - Adjusted pre-tax income was $16 million, leading to an annualized adjusted ROE of 14% [8] - Originations volume reached $9.4 billion, a 35% increase year-over-year, surpassing the industry growth rate of 23% [8] - Average servicing UPB (unpaid principal balance) increased to $307 billion, up $2 billion year-over-year [8] Business Highlights - Funded recapture volume increased 2.4 times year-over-year, with a refinance recapture rate 1.5 times the industry average [9] - The average owned servicing UPB rose by 16% year-over-year to $153 billion [9] - The company maintained total liquidity of $218 million as of June 30, 2025 [9] Market Position - Onity Group operates primarily through its brands, PHH Mortgage and Liberty Reverse Mortgage, positioning itself as a leading non-bank financial services provider [7][10] - Fitch Ratings upgraded all of the company's residential primary servicer ratings, affirming its strong market position [9] Outlook - The company confirmed its previous guidance for 2025, maintaining an adjusted ROE range of 16% to 18% [8] - Onity Group anticipates the potential release of some or all of its $180 million deferred tax valuation allowance by year-end 2025 [8]

Core Insights - Mr. Cooper Group reported Q2 2025 earnings with earnings per share (GAAP) at $3.04, below the $3.18 consensus, and revenue at $608 million, nearly 10% short of the $674.24 million expectation [1][11] Business Overview - Mr. Cooper operates in the U.S. housing finance market, focusing on mortgage servicing and origination, which includes collecting mortgage payments and creating new residential mortgage loans [3] - The company's business model emphasizes managing a large portfolio of residential mortgages, with key success factors being servicing scale, cost efficiency, and technology-driven improvements [4] Quarterly Performance Highlights - The servicing portfolio's unpaid principal balance reached $1,509 billion, up 25% year-over-year, although it dipped slightly from the previous quarter [5] - Net servicing revenue increased to $426 million, supported by a reduction in expenses from $240 million in Q1 2025 to $148 million [5] - The servicing segment achieved a pretax operating income of $332 million for the second consecutive quarter, with improved credit quality as delinquency rates fell to 1.4% [6] - The originations segment saw pretax income rise to $64 million from $45 million in Q1 2025, with funded origination volume climbing 14% to $9.4 billion [8] Strategic Initiatives - Subservicing remains a significant part of the business, with a balance of $778 billion, allowing for growth without substantial capital risk [7] - The company announced a new mortgage servicing rights (MSR) fund with $200 million in initial capital, indicating plans for further growth in this area [7] - Technological investments, including digital tools and AI, are aimed at enhancing cost efficiency and customer service [9] Financial Metrics - Tangible book value per share increased to $75.90 from $72.53, and return on tangible common equity (ROTCE) rose to 17.2% [10] - Company-wide expenses decreased to $330 million from $430 million in Q1 2025 [9] Future Outlook - Management highlighted the pending merger with Rocket and the launch of the new MSR Fund as significant developments, with a focus on expanding the customer base and maintaining cost discipline [12][13]

Financial Performance - GAAP Net Income was $2839 million, or $053 per diluted share, with a 17% Return on Equity[15] - Earnings Available for Distribution (EAD) reached $2911 million, or $054 per diluted share, resulting in an 18% Return on Equity[15] - The company's book value stood at $67 billion, equivalent to $1271 per common share[15] - Cash and liquidity amounted to $21 billion, complemented by a common stock dividend with an 89% dividend yield, or $025 per common share[15] Business Highlights - Rithm Capital has approximately $80 billion in investable assets, including $36 billion in Assets Under Management (AUM) and $44 billion in balance sheet assets[9] - Newrez's total servicing portfolio reached $864 billion UPB, ranking it as the 3 US Mortgage Servicer and 4 US Mortgage Originator[12] - Genesis Capital's Q2'25 originations totaled $12 billion, representing a 49% year-over-year increase[30] - Sculptor Capital reported $36 billion of AUM, up $35 billion since acquisition close, with $17 billion of gross inflows in Q2[30] Strategic Initiatives - The company believes a strategy centered on earnings growth and an increased focus on fee-related earnings will lay a foundation for significant upside[17] - Rithm Property Trust has an active investment pipeline of over $2 billion[12] - The company's current valuation of 96% of book value understates the intrinsic value of Rithm's core segments[25]

Core Insights - PHH Mortgage has achieved Fannie Mae's 2024 Servicer Total Achievement and Rewards™ (STAR™) Performer recognition in the General Servicing category for the fourth consecutive year [1][2] Company Performance - PHH serviced or subserviced approximately 1.4 million loans with a total unpaid principal balance exceeding $300 billion as of December 31, 2024 [3] - The company manages loans on behalf of around 4,000 investors and 125 subservicing clients [3] Industry Position - PHH Mortgage is recognized as one of the largest non-bank mortgage servicers in the United States, providing a variety of servicing and lending programs [4] - The company has built a servicing platform that emphasizes operational performance, customer focus, and innovative technology solutions [2]