“With the recent decline in rates, our origination business ended the quarter with our largest month in lock volume since early 2022,” Newrez President Baron Silverstein said during an earnings call Thursday morning. “While market competition continues to drive margin pressure, our disciplined focus remains on profitable growth with an eye for market opportunities.”
On the manufacturing side, Newrez delivered $80.4 million in pretax revenue in the third quarter of 2025, compared to $86.6 million in the second quarter. Financed production volume reached $16.4 billion, up 3% year-on-year, driven primarily by the correspondent channel. Silverstein said margins fell to 114 basis points, compared to 122 basis points in the previous quarter, due to channel mix and an increase in streamlined government refinancing.
Newrez’s services business saw pre-tax income increase to $660.3 million in the third quarter, compared to $233.6 million in the second quarter. The maintenance portfolio reached $878 billion in unpaid principal balance (UPB), up 7% year over year. This includes $282 billion in third-party services, up 21% from the previous year.
“Our dedicated service platform is the best in the industry and we continue to gain market share as evidenced by increases in our third-party UPB,” said Silverstein. “We are also excited about a new partnership with Wells Fargo, which affirms our leadership in non-agency services in the industry.”
Newrez entered into an agreement with Wells Fargo to purchase an existing PLS portfolio, with the expectation that transfers will begin next year.
BTIG Analysts estimate Newrez could recapture 40% to 50% of its servicing portfolio if mortgage rates fall another 25 basis points, while their estimate for total new loans next year is about $75 billion.
“The alignment we see between service and origination has improved significantly compared to the company’s position leading up to the pandemic,” the analysts added.
Assets under management
Company executives reiterated that they have no plans to take Newrez public anytime soon. Michael Nierenberg, president and CEO of Rithm, told analysts on the earnings call that the company must first grow its asset management business.
Rithm manages more than $100 billion in investable assets within the owner-operator model. In the fourth quarter, the company expects to close its first evergreen asset-backed financing fund through its asset management platform, targeting more than $500 million.
In line with that strategy, Rithm announced the acquisition of Crestline Management, a move that adds $17 billion in assets under management and expands the company’s direct credit and insurance offerings. It also paid $1.6 billion to acquire Paramount Group and building a presence in the office real estate market.
Nierenberg said these acquisitions will help Rithm expand its platform and product offerings. He added that the company will not raise any equity capital to finance these deals. They will be financed using the company’s balance sheet and third party capital.
Overall, Rithm reported third-quarter 2025 net income of $228 million, compared to $318 million in the second quarter. GAAP net income was $193 million. The company expects to have $1.3 billion in cash and cash equivalents following the closing of the Crestline and Paramount transactions.
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