"The mortgage platform generated approximately $1.1 billion in pretax income in 2025, including mark-to-market adjustments, an increase of 17% year over year, according to Newrez President Baron Silverstein, who called it a milestone for the platform. Silverstein also provided comments about Rithm Capital's announcement on Monday regarding its partnership with Valon, which will allow Newrez to deploy Valon's AI-native mortgage servicing platform, ValonOS, to service more than 4 million loans starting in 2027."
"In the fourth quarter, Newrez posted $249 million in pretax income excluding mark-to-market adjustments, supported by growth in originations and fee-based third-party servicing. The unit delivered a 17% return on equity in the quarter and a 20% return on equity for the full year, the company said. Newrez ended 2025 as the third-largest mortgage servicer and the fifth-largest mortgage lender in the United States, according to company data. Its servicing portfolio totaled approximately $850 billion in unpaid principal balance (UPB) at year-end."
"About 30% of Newrez's servicing portfolio consists of high-margin, fee-based third-party servicing, while government-insured loans accounted for a portion of owned mortgage servicing rights. Newrez's third-party servicing increased to $256 billion, which Silverstein said includes $25 billion in new third-party servicing, which offsets the movement of a single margin agency sub servicing portfolio. During the call, the company remarked that fourth-quarter results were affected by seasonal delinquency trends and changes to FHA loan modification rules, which increased short-term delinquencies but are expected to support longer-"
Newrez produced approximately $1.1 billion in pretax income in 2025, a 17% year-over-year increase including mark-to-market adjustments. The platform reported $249 million in pretax income in Q4 excluding mark-to-market items, driven by originations growth and fee-based third-party servicing. The unit achieved a 17% return on equity in the quarter and a 20% return for the full year. Newrez ended 2025 as the third-largest mortgage servicer and the fifth-largest mortgage lender in the U.S., with about $850 billion in servicing UPB. Roughly 30% of the portfolio is high-margin third-party servicing; third-party servicing rose to $256 billion, including $25 billion of new business. The company expects the ValonOS partnership to materially improve efficiency and benefit homeowners and third-party clients.
Read at www.housingwire.com
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