In the third quarter of 2023, Rithm, a major player in the mortgage industry, has seen a decrease in its profits. This downturn can be primarily attributed to two events: their involvement in a legal dispute with Sculptor Capital Management and their acquisition of Specialized Loan Servicing.
The legal dispute with Sculptor Capital Management involved a matter related to the mortgage backed securities held by Rithm. The dispute, which cost Rithm an undisclosed amount in legal fees, was eventually resolved in the company’s favor.
The acquisition of Specialized Loan Servicing required Rithm to make an upfront payment as well as take on additional liabilities associated with the mortgage servicing portfolio of Specialized Loan Servicing. This took a financial toll on Rithm, as well as decreased their earning capacity.
Rithm’s Profitability in Q3:
• Dispute with Sculptor Capital Management – legal dispute that cost undisclosed amount in legal fees
• Acquisition of Specialized Loan Servicing – required upfront payments & taking on associated liabilities, decreasing earning potential
You can read this full article at: https://www.housingwire.com/articles/rithm-delivers-194m-profit-in-q3-amid-ma-deals/(subscription required)
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