Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 29

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 29
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 45.4 %490 31.9 %11.4 %20.072.7% / 62.2%Bridge972,443 363,946 1,336,389 42.6 %600 39.1 %10.0 %23.966.6%Renovation270,490 106,175 376,665 12.0 %445 29.0 %10.5 %12.882.8% / 68.2%$2,178,075 $962,192 $3,140,267 100.0 %1,535 100.0 %10.7 %20.4N/A(A)Residential transition loans are carried at fair value under the FVO election. Residential transition loans held by consolidated CFEs are classified as Level 3 and valued based on the more observable financial liabilities of consolidated CFEs. See Note 19 regarding fair value measurements.(B)Weighted by commitment loan-to-value (“LTV”) for bridge loans, loan-to-cost and loan-to-after-repair-value for construction and renovation loans.

26

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

The following table summarizes the activity of loans included in residential transition loans, at fair value on the consolidated balance sheets:Balance at December 31, 2024$2,178,075 Initial loan advances526,672 Construction holdbacks and draws248,857 Repayments and sales(353,127)Purchased loans discount (premium) amortization27 Transfer of loans to REO(1,206)Transfers to assets of consolidated CFEs(263,356)Fair Value Adjustments Due To:Changes in instrument-specific credit risk(8,561)Other factors7,837 Balance at March 31, 2025$2,335,218 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