Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 92

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1A
Chunk 92
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s, Ginnie Mae and other business counterparties subject our subsidiaries’ mortgage origination and servicing businesses to periodic examinations, reviews and audits, and we routinely conduct our own internal examinations, reviews and audits. These various examinations, reviews and audits of our subsidiaries’ businesses and related activities may reveal deficiencies in such subsidiaries’ compliance with our policies and other requirements to which they are subject. While we strive to investigate and remediate such deficiencies, there can be no assurance that our internal investigations will reveal any deficiencies or that any remedial measures that we implement, which could involve material expense, will ensure compliance with applicable policies, laws, regulations and other requirements or be deemed sufficient by the GSEs, Ginnie Mae, federal and local governmental authorities or other interested parties.

We and our subsidiaries devote substantial resources to regulatory compliance and regulatory inquiries, and we incur, and expect to continue to incur, significant costs in connection therewith. Our business, financial condition, liquidity and/or results of operations could be materially and adversely affected by the substantial resources we devote to, and the significant compliance costs we incur in connection with, regulatory compliance and regulatory inquiries, including any fines, penalties, restitution or similar payments or changes to business practices we may be required to make in connection with resolving such matters.

The actual or alleged failure of our mortgage origination and servicing subsidiaries to comply with applicable federal, state and local laws and regulations and GSE, Ginnie Mae and other business counterparty requirements, or to implement and adhere to adequate remedial measures designed to address any identified compliance deficiencies, could lead to:

•the loss or suspension of licenses and approvals necessary to operate our or our subsidiaries’ business;

•limitations, restrictions or complete bans on our or our subsidiaries’ business or various segments of our business;

•our or our subsidiaries’ disqualification from participation in governmental programs, including GSE, Ginnie Mae and VA programs;

•breaches of covenants and representations under our servicing, debt, or other agreements;

•negative publicity and damage to our reputation;

•governmental investigations and enforcement actions;

•administrative fines and financial penalties;

•litigation, including class action lawsuits;

•civil and criminal liability;

•termination of our servicing and subservicing agreements or other contracts;

•demands for us to repurchase loans;

•loss of personnel who are targeted by prosecutions, investigations, enforcement actions or litigation;

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•a significant increase in compliance costs;

•a significant increase in the resources we and our subsidiaries devote to regulatory compliance and regulatory inquiries;

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