Newrez posts strong Q2 profit, eyes $65B in originations for 2026

Newrez delivered a higher profit in the second quarter of 2026 as its mortgage servicing performance improved and originations increased compared to the prior quarter.

Executives at parent company Rithm Capital said Tuesday that the company is projected to originate about $65 billion this year, compared to $63.4 billion in 2025.

“Results were driven by our disciplined origination strategies, higher servicing fees, and despite interest rate volatility, higher recapture and lower amortization,” Baron Silverstein, president of Newrez, told analysts during an earnings call.

The multichannel lender and servicer reported pretax operating income of $307.6 million in Q2 2026, up from $273.7 million in Q1 2026, according to filings with the Securities and Exchange Commission (SEC). The figure excludes a $194.5 million mark-to-market loss on mortgage servicing rights (MSRs), hedge impacts and other nonoperating items.

Newrez originated $15.9 billion in mortgages in the second quarter, up 3% quarter over quarter and down 2% year over year. The company’s gain-on-sale margin was 1.64% in Q2, up from 1.44% in the prior quarter.

“We maintained pricing discipline, did not chase market share, and stayed focused on nonagency through our wholesale channel and customer retention through our consumer-direct channel,” Silverstein said. “Both channels combined now [comprise] 40% of our overall originations, which is up 11% quarter over quarter.”

Regarding its channels, Newrez exited distributed retail in July by transferring it to Synergy One Lending, a division of American Pacific Mortgage.

On the servicing side, Newrez ended the second quarter with $865 billion in unpaid principal balance, including $268 billion of third-party servicing. The segment delivered $254.6 million in pretax income, up from $203.6 million in the prior quarter.

“Co-issue MSR acquisitions came in at $5 billion, up 45% quarter over quarter, as we continue to expand our momentum on MSR growth,” Silverstein said.

Newrez continues to pursue reductions in its costs per loan, which is currently one-third below the industry average and forecasted to be 50% below the industry average following the integrations of Valon and HomeVision. In terms of new products, executives mentioned the expansion of home rewards, insurance offerings and a new personal loan product.

Overall, Rithm reported net income of $67.9 million in Q2, down from $109.4 million in the prior quarter.

“Today, we feel the markets are different. We have a new Fed chair. We have more M&A. We have the likelihood of higher rates for longer, which plays extremely well for our business when you think about an $850 billion MSR portfolio,” Michael Nierenberg, chairman, CEO and president of Rithm Capital, told analysts.