Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 366

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 2
Chunk 366
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 for the three months ended March 31, 2025 and 2024, respectively. The net cash provided by operating activities is primarily attributable to proceeds from residential mortgage loan repayments, offset by lower volume of mortgage originations resulting from a decrease in refinance activity as interest rates remained elevated. 

Investing Activities

Net cash used in investing activities was approximately $1.3 billion and $4.1 billion for the three months ended March 31, 2025 and 2024, respectively. The net cash used in investing activities is primarily attributable to purchases of government-backed securities.

Financing Activities

Net cash provided by financing activities were approximately $0.1 billion and $5.2 billion for the three months ended March 31, 2025 and 2024, respectively. The net cash provided by financing activities is primarily attributable to borrowings and proceeds on warehouse facilities, repurchase agreements, and non-qualified mortgage securitizations. 

109

INTEREST RATE, CREDIT AND SPREAD RISK

We are subject to interest rate, credit and spread risk with respect to our investments. These risks are further described under “Quantitative and Qualitative Disclosures About Market Risk.”

OFF-BALANCE SHEET ARRANGEMENTS

We have material off-balance sheet arrangements related to our non-consolidated securitizations of residential mortgage loans treated as sales in which we retained certain interests. We believe that these off-balance sheet structures presented the most efficient and least expensive form of financing for these assets at the time they were entered and represented the most common market-accepted method for financing such assets. Our exposure to credit losses related to these non-recourse, off-balance sheet financings is limited to $0.6 billion. As of March 31, 2025 there was $8.6 billion in total outstanding UPB of residential mortgage loans underlying such securitization trusts that represent off-balance sheet financings. 

We have material off-balance sheet arrangements related to our involvement with funds through our Asset Management business. The Company’s involvement in these off-balance sheet arrangements is generally limited to providing asset management services and, in certain cases, investments in the non-consolidated entities. As of March 31, 2025, our maximum exposure to loss of $934.0 million represents the potential loss of current investments or income and fees receivables from these entities, as well as the obligation to repay unearned revenues, primarily incentive income subject to clawback,