Company: RITM-PC
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001556593-25-000024
Chunk: 169

Company: Rithm Capital Corp.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 1
Chunk 169
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 anticipated loan funding probability. Both the fair value of servicing rights expected to be recorded at the date of sale of the loan and anticipated loan funding probability are significant unobservable inputs and therefore, IRLCs are classified as Level 3 in the fair value hierarchy. The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing IRLCs:Fair ValueLoan Funding ProbabilityFair Value of Initial Servicing Rights (bps)June 30, 2025$50,522 0.0% – 100.0%(84.4%)6.2 – 428.3(261.2)December 31, 2024$11,294 0.0% – 100.0%(86.1%)1.0 – 426.7(281.8)Asset-Backed Securities IssuedAs of June 30, 2025 and December 31, 2024, Rithm Capital was the primary beneficiary of the SCFT 2020-A (as defined in Note 20) securitization, and therefore, Rithm Capital’s consolidated balance sheets include the asset-backed securities issued by the trust in the SCFT 2020-A securitization. Rithm Capital elected the FVO for the securities and valued them consistently with non-Agency securities described above.The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing asset-backed securities issued:Fair ValueDiscount RatePrepayment RateCDRLoss SeverityJune 30, 2025$160,433 5.5%14.6%5.0%93.2%December 31, 2024$185,460 5.4%14.5%5.1%92.3%

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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)

Notes Receivable, Notes Receivable Financing and Loans ReceivableFrom time to time, Rithm Capital purchases notes and loans receivable that are generally collateralized by commercial real estate assets. Rithm Capital generally uses internal discounted cash flow pricing models to estimate the fair value of notes receivable, notes receivable financing and loans receivable. Due to the fact that the fair value of Rithm Capital’s notes receivable, notes receivable financing and loans receivable are based significantly on unobservable