Company: RITM-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001556593-25-000033
Chunk: 155

Company: Rithm Capital Corp.
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 155
---
.Level 3Asset-Backed Securities IssuedNotes Payable of CFEs - Consolidated FundsNotes Payable of CFEs - Residential Transition LoansMSR Financing LiabilityNotes Receivable Financing LiabilityTotalBalance at December 31, 2023$235,770 $218,157 $318,998 $— $— $772,925 Transfers:Transfers to Level 3— — — — 373,042 373,042 Computershare Acquisition (Note 3)— — — 125,168 — 125,168 Gains (Losses) Included in Net Income:Servicing revenue, net(A)— — — (17,644)— (17,644)Other income(B)6,714 (898)9,888 — — 15,704 Purchases, Issuance and Repayments:Issuance— — 858,828 — — 858,828 Repayments(45,250)— (324,062)— — (369,312)Other— — (1,272)— — (1,272)Balance at September 30, 2024$197,234 $217,259 $862,380 $107,524 $373,042 $1,757,439 (A)See Note 5 for further details on the components of servicing revenue, net.(B)Gain (loss) recorded in earnings during the period is attributable to the change in unrealized gain (loss) relating to Level 3 financial liabilities still held at the reporting dates and realized gain (loss) recorded during the period. The full fair value change during the period was due to factors other than instrument-specific credit risk.Excess MSRs, MSRs and MSR Financing Receivables and MSR Financing Liability ValuationFair value estimates of Rithm Capital’s MSRs and related MSR financing liability and Excess MSRs were based on internal pricing models. The valuation technique is based on discounted cash flows. Significant inputs used in the valuations included expectations of prepayment rates, delinquency rates, recapture rates, mortgage servicing amount or excess mortgage servicing amount of the underlying residential mortgage loans, as applicable, and discount rates that market participants would use in determining the fair values of MSRs on similar pools of residential mortgage loans. In addition, for MSRs, significant inputs included the market-level