Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 41

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 41
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 right of set-off with the counterparty. As part of executing these trades, Rithm Capital may enter into agreements with its counterparties that govern the transactions for the purchases or sales made, including margin maintenance, payment and transfer, events of default, settlements and various other provisions. Changes in the value of economic hedges designed to protect against MBS and MSR fair value fluctuations, or hedging gains and losses, are reflected in the tables below. As of March 31, 2025, Rithm Capital also held interest rate lock commitments (“IRLCs”), which represent a commitment to a particular interest rate provided the borrower is able to close the loan within a specified period, and forward loan sale and securities delivery commitments, which represent a commitment to sell specific residential mortgage loans at prices which are fixed as of the forward commitment date. Rithm Capital enters into forward loan sale and securities delivery commitments in order to hedge the exposure related to IRLCs and residential mortgage loans that are not covered by residential mortgage loan sale commitments. 

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RITHM CAPITAL CORP. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(dollars in tables in thousands, except share and per share data)

Derivatives and economic hedges are recorded at fair value and presented in other assets or accrued expenses and other liabilities on the consolidated balance sheets, as follows:March 31, 2025December 31, 2024Derivative and Hedging Assets:Interest rate swaps and futures(A)$2 $6 IRLCs37,923 21,496 TBAs2,628 50,809 Foreign exchange forwards— 2,836 $40,553 $75,147 Derivative and Hedging Liabilities:IRLCs$3,536 $10,202 TBAs29,574 15,628 Treasury short sales(B)— 1,245 Other commitments(C)25,521 25,521 Stock options7 14 Foreign exchange forwards2,118 — $60,756 $52,610 (A)Net of $41.8 million and $42.0 million of related variation margin accounts as of as of March 31, 2025 and December 31, 2024, respectively.(B)As of December 31, 2024, the carrying value represents the net of repurchase agreements and $503.9 million of related reverse