Key facts
- Newrez's Q3 pretax operating income was $329.7 million, up from $307.6 million in Q2.
- Originations dropped 19% to $12.9 billion in Q3.
- Servicing portfolio reached $878.9 billion in unpaid principal balance.
- Rithm Capital reported Q3 revenue of $1.76 billion.
- Rithm Capital reported Q3 GAAP net income of $217 million.
Newrez, a multichannel mortgage lender, experienced a 19% decrease in originations during the third quarter, yet its parent company, Rithm Capital, reported an increase in pretax operating income to $329.7 million. This performance was driven by strong servicing income and strategic origination in a market characterized by elevated mortgage rates. Executives emphasized a focus on profitability and capital efficiency over market share, utilizing platforms to originate loans where higher returns are expected for both shareholders and clients. The company is also pursuing technology investments, including a partnership with Valon, to achieve $125 million in cost savings.