Newrez funded $12.9 billion of mortgages in the third quarter, 19% less than in the second quarter and 21% less than a year earlier. Rithm Capital Corp. (RITM) disclosed the figure in its results for the quarter ended September 30, 2026, filed as an exhibit to an 8-K ahead of its October 23 conference call. The release does not give a reason for the drop.

The slower lending pace showed up in the company's preferred profit measure. Earnings available for distribution, a non-GAAP figure, fell to $315.3 million, or $0.55 per diluted share, from $338.9 million, or $0.60, in the second quarter.

GAAP results moved the other way. Net income climbed to $217.1 million, or $0.38 per diluted share, from $20.2 million, or $0.04.

Servicing values swing back

The GAAP jump traces to the value of mortgage servicing rights. The change in fair value of MSRs and MSR financing receivables, net of economic hedges, was a gain of $121.3 million in the quarter, after a loss of $392.9 million in the second quarter, according to the release.

Newrez posted segment pretax income of $604.8 million, up from $113.1 million. Strip out a $275.2 million mark-to-market gain, net of hedges, and other non-operating items, and pretax operating income was $329.7 million against $307.6 million. The company put Newrez's annualized operating return on equity at 24%.

Income tax expense rose to $257.8 million from $19.0 million, about 49.7% of pretax income, as calculated by Trend & Ticker. Rithm adds back $254.7 million of deferred taxes in its distributable earnings bridge.

Newrez serviced $878.9 billion of loan balances at quarter end. Third-party clients made up $282.8 billion, or about 32% of that book, as calculated by Trend & Ticker.

Asset management revenue shrinks

Assets under management held at about $61 billion, the same as at the end of June. Gross inflows were $569 million in the quarter and $2.9 billion so far this year.

Asset management revenue fell to $107.3 million from $142.2 million, and the segment swung to a pretax loss of $68.8 million from income of $14.0 million.

Genesis Capital, the residential transitional lender, originated $1.5 billion of loans, up 25% from a year earlier.

"Our businesses continue to perform," Chief Executive Michael Nierenberg said in the release.

The $0.25 common dividend was covered 2.2 times by distributable earnings per share, as calculated by Trend & Ticker. Book value stood at $12.51 per common share across 558.4 million shares at September 30.