Key facts
- Newrez's pretax operating income increased to $307.6 million in Q2 2026 from $273.7 million in Q1 2026.
- The company originated $15.9 billion in mortgages in Q2, a 3% increase quarter-over-quarter.
- Newrez's servicing segment generated $254.6 million in pretax income in Q2, up from $203.6 million in Q1.
- Parent company Rithm Capital projects Newrez will originate $65 billion in mortgages for 2026.
- Newrez exited its distributed retail channel in July.
Newrez reported a rise in pretax operating income to $307.6 million in the second quarter of 2026, up from $273.7 million in the previous quarter. This improvement was driven by enhanced mortgage servicing performance and an increase in originations. The company originated $15.9 billion in mortgages during the second quarter, marking a 3% increase from the prior quarter and a 2% decrease year-over-year. The gain-on-sale margin improved to 1.64% from 1.44% in Q1.
Executives at parent company Rithm Capital indicated that Newrez is projected to originate approximately $65 billion in mortgages for 2026, an increase from the $63.4 billion originated in 2025. Baron Silverstein, president of Newrez, attributed the strong results to disciplined origination strategies, higher servicing fees, and effective customer retention, particularly in the nonagency wholesale and consumer-direct channels, which now constitute 40% of overall originations.
In July, Newrez exited its distributed retail channel, transferring it to Synergy One Lending. On the servicing side, the company ended the second quarter with $865 billion in unpaid principal balance, including $268 billion of third-party servicing. The servicing segment contributed $254.6 million in pretax income, an increase from $203.6 million in Q1. Co-issue MSR acquisitions also saw a significant rise of 45% quarter-over-quarter.
Rithm Capital reported a decrease in net income to $67.9 million in Q2 2026, compared to $109.4 million in Q1. Michael Nierenberg, chairman, CEO and president of Rithm Capital, noted that the current market conditions, including potential higher interest rates for longer, are favorable for their business, especially given their substantial MSR portfolio.