New York-headquartered Rithm Capital, the parent company of multichannel lender Newrez, on Monday announced the successful closing of what it calls the largest-ever mortgage servicing rights (MSR) debt issuance.
The MSR-backed note totals $878 million and is only the second nonrecourse MSR securitization in market history, following Rithm’s $461 million offering in November 2024.
This week’s offering includes fixed financing over the expected three-year life span of the assets. Rithm said it has now closed 17 MSR deals with an aggregate value of $7.7 billion since 2015.
“Rithm boasts over a decade of experience in the MSR sector, and our expertise, reliable servicing performance, and innovative approach are reshaping what’s possible in this exciting space,” Michael Nierenberg, the company’s chairman, CEO and president, said in a statement.
“The success of this transaction demonstrates strong confidence in our growing platform, as well as our capability to provide new high-quality mortgage servicing solutions. We are committed to further solidifying Rithm’s leadership in the sector and expanding access to this emerging asset class.”
Rithm had a prosperous 2024 as it reported net income of $835 million, up 57% from the prior year. The firm appears to be capitalizing on its recent acquisitions of Great Ajax, Sculptor Capital Management and Computershare Mortgage Services. And it may not be done anytime soon.
Last month, a “blank check” special purpose acquisition company affiliated with Rithm announced its intent with the Securities and Exchange Commission (SEC) to raise $200 million for acquisitions in the financial services and real estate sectors.
“We intend to target companies in the financial services and real estate sectors where our management has extensive investment and operational experience,” the SEC filing reads. “In addition, we expect to evaluate opportunities relating to digital infrastructure, including opportunities at the convergence of infrastructure and technology.”
