Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 300

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 300
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 taxable subsidiaries file combined federal and state returns and as a result, present deferred tax liability or asset on a net basis on its consolidated balance sheets.

159

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

REO — REO assets are individual properties acquired by Rithm Capital or where Rithm Capital receives the property as a result of foreclosure of the underlying loan. Rithm Capital measures REO assets at the lower of cost or fair value, with valuation provision recorded in other income (loss), net in the consolidated statements of operations. REO assets are managed for prompt sale and disposition. The following table presents activity for the period related to the carrying value of investments in REO:Balance at December 31, 2022$19,379 Property received in satisfaction of loan21,943 Sales(A)(27,512)Valuation reversal1,697 Balance at December 31, 202315,507 Purchases16,256 Property received in satisfaction of loan28,859 Sales(A)(31,614)Valuation provision(1,110)Balance at December 31, 2024$27,898 (A)Recognized when control of the property has transferred to the buyer.As of December 31, 2024, Rithm Capital had residential mortgage loans and residential transition loans that were in the process of foreclosure with UPBs of $43.5 million and $35.1 million, respectively.Notes and Loans Receivable — The following table summarizes the activity for the period for notes and loans receivable:Notes ReceivableLoans ReceivableTotalBalance at December 31, 2022$— $94,401 $94,401 Fundings(A)399,977 — 399,977 Payment in kind— 5,636 5,636 Proceeds from repayments(1,750)(68,945)(70,695)Fair Value Adjustments Due To:Other factors— 231 231 Balance at December 31, 2023398,227 31,323 429,550 Fundings(A)23,036 — 23,036 Payment in kind— 4,677 4,677 Proceeds from repayments(33,250)(4,420)(37,670)Fair Value Adjustments Due To:Other factors5