Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 296

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 296
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 and loan-to-after-repair-value for construction and renovation loans.

156

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

The following table summarizes the activity for the period of loans included in residential transition loans, at fair value on the consolidated balance sheets:Balance at December 31, 2022$1,714,053 Purchases146,631 Initial loan advances1,380,187 Construction holdbacks and draws667,656 Paydowns and payoffs(1,671,895)Purchased loans discount (premium) amortization668 Transfers to assets of consolidated CFEs(357,614)Fair Value Adjustments Due To:Changes in instrument-specific credit risk— Other factors(367)Balance at December 31, 20231,879,319 Purchases— Initial loan advances1,991,047 Construction holdbacks and draws882,623 Paydowns and payoffs(1,394,313)Purchased loans discount (premium) amortization1,087 Transfer of loans to REO(11,649)Transfers to assets of consolidated CFEs(1,200,446)Fair Value Adjustments Due To:Changes in instrument-specific credit risk8,549 Other factors21,858 Balance at December 31, 2024$2,178,075 The Company is subject to credit risk in connection with its investments in mortgage loans. The two primary components of credit risk are default risk, which is the risk that a borrower fails to make scheduled principal and interest payments, and severity risk, which is the risk of loss upon a borrower’s default on a mortgage loan or other secured or unsecured loan. Severity risk includes the risk of loss of value of the property or other asset, if any, securing the loan, as well as the risk of loss associated with taking over the property or other asset, if any, including foreclosure costs. The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of loans included in residential transition loans, at fair value on the consolidated balance sheets:December 31,20242023Days Past DueUPBCarrying ValueCarrying Value Over (Under) UPBUPBCarrying ValueCarrying Value Over (Under) UPBCurrent$2,117,479 $2,128,802 $11