Rithm Capital’s Mortgage Arm Bets on AI to Streamline Lending

In a strategic move to harness artificial intelligence, Newrez, the mortgage origination and servicing subsidiary of Rithm Capital (formerly New Residential Investment Corp.), has taken an equity stake in technology firm HomeVision. The collaboration aims to build what the partners describe as the mortgage industry's first comprehensive AI-powered underwriting platform, designed to automate and accelerate loan approval. A central question underpinning the investment is whether this technology can meaningfully reduce operational costs.

The announcement arrives on the heels of Rithm Capital's two major December acquisitions: Paramount Group and Crestline Management. This suggests a strategic pivot, at least in the near term, from external growth via purchases to internal optimization and margin expansion. As of January, the company reports a net margin of approximately 29.47% and a notably high debt-to-equity ratio of about 3.83. Its annualized dividend stands at $1.00 per share, which, based on a recent share price of $11.15 (as of 10:30 AM ET), translates to a yield of roughly 8.97%. Institutional investors hold around 50.6% of the equity.

Key Data Points:
* Newrez's investment in HomeVision is targeted at expanding an AI underwriting solution.
* The company states that prior use of HomeVision's MIRA technology doubled operational efficiency in collateral underwriting.
* Plans are in place to extend the platform to assess income, assets, and credit; a full rollout is anticipated during the 2026 calendar year.
* The stock showed a muted reaction to the news, with shares trading at $11.15.
* The next quarterly report, for Q4 2025, is scheduled for February 4. A dividend payment of $0.25 per share is confirmed for January 30.

Should investors sell immediately? Or is it worth buying New Residential Investment?

From Collateral to Complete Underwriting

The initiative focuses on scaling HomeVision's existing MIRA technology, which has already been deployed for evaluating property collateral. According to company management, MIRA doubled processing efficiency in that specific segment. The new goal is to integrate modules for the three other core underwriting pillars—income, assets, and creditworthiness—into a single, end-to-end platform. This integrated approach is expected to lower origination expenses and speed up the borrowing process for applicants. While the specific financial terms of the stake were not disclosed, the enhanced technology suite is slated for implementation throughout 2026.

Upcoming Catalysts and Market Focus

The immediate milestone for investors is the Q4 2025 earnings release on February 4. Market participants will be listening for management commentary on the integration progress of the recent Paramount acquisition and, more critically, for any forward-looking statements regarding anticipated cost savings from the AI platform. Specific guidance on expected expense ratios for 2026 will be a key area of scrutiny. In the shorter term, the scheduled dividend distribution on January 30 provides a liquidity reference point for shareholders.