Rithm Capital expands partnership with Valon to deploy operating system
Rithm Capital Corp., the parent company of multichannel mortgage lender Newrez, said Monday that it’s deepening its partnership with Valon Technologies, a mortgage servicing technology firm, as one of its subsidiaries prepares to deploy Valon’s operating system across millions of loans.
Rithm, an early investor in Valon, will use Valon’s AI-native mortgage servicing platform, ValonOS, to service more than 4 million homeowners. The companies said the move is aimed at improving the customer experience while lowering servicing costs.
“This strategic partnership with Valon combines Rithm’s deep investment insight, Newrez’s proven leadership, and Valon’s transformative technology to modernize the $13 trillion mortgage servicing industry,” Rithm Capital CEO Michael Nierenberg said in a statement.
“Early on, Rithm recognized Valon’s potential to redefine mortgage servicing, and we are now doubling down on that conviction. We believe ValonOS will bring real operational efficiency, scalability, and innovation to Newrez and its clients. This is exactly the kind of early-stage opportunity we look for—where technology and vision can create outsized value over the long term.”
The expanded partnership reflects Rithm’s confidence in Valon’s technology and its ability to operate at scale in a highly regulated industry.
“Today marks an important milestone as we accelerate our growth and elevate the standard for innovation in the mortgage industry,” said Baron Silverstein, CEO of Newrez. “Newrez and Valon are aligned in our mission to deliver the most seamless and intuitive mortgage servicing experience possible. Powered by advanced technology and deep operational expertise, this partnership strengthens our platform and brings that ambition to life for Newrez’s over 4 million homeowners.”
Valon said the Newrez deployment represents a major validation of its operating system, which it positions as a core platform for regulated financial services companies.
“As one of Valon’s earliest investors, Rithm has long understood our vision to build the single source of truth operating system for regulated industries worldwide and has seen the technology evolve from an idea to mission-critical and of strategic importance,” said Andrew Wang, CEO of Valon.
“Newrez — one of the nation’s largest mortgage servicers and a leader in technology — is the ideal partner to help accelerate adoption and prove it works at scale for even the most regulated servicers. Together, we will deliver unprecedented efficiency, scalability, and customer experience to mortgage servicing, laying the foundation for broader transformation across financial services.”
Newrez is expected to begin transitioning to ValonOS in 2027, the company confirmed in its announcement.
The news follows Rithm’s announcement in mid-January about its offering of $250 million in the company’s preferred stock on the New York Stock Exchange, involving 10 million shares of Series F fixed-rate preferred stock at 8.75%.
In December, Rithm completed its acquisition of Crestline Management, and in November, it terminated a subservicing agreement with Onity Group subsidiary PHH Mortgage Corp., effective at the end of January. The contract was tied to a $33 billion portfolio composed mostly of pre-2008 loans.
Rithm also announced its $1.6 billion purchase of Paramount Group in September 2025.