Company: RITM-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001556593-25-000033
Chunk: 435

Company: Rithm Capital Corp.
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 435
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 purchase and sales of Treasury government backed securities in 2024. This was partially offset by net cash provided by reverse repurchase and repurchase agreement activity of $1.8 billion in 2024. 

Financing Activities

Net cash provided by financing activities was approximately $0.3 billion and $2.8 billion for the nine months ended September 30, 2025 and 2024, respectively. The decrease of net cash provided by financing activities of $2.5 billion was primarily driven by net payment of $0.3 billion on borrowings and repayments of secured financing and warehouse facilities in 2025 compared to net proceeds of $2.8 billion received in 2025.

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 $0.5 billion. As of September 30, 2025 there was $8.7 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 September 30, 2025, our maximum exposure to loss of $980.4 million represents the potential loss of current investments or income and fees receivable from these entities, as well as the obligation to repay unearned revenues, primarily incentive income subject to clawback, in the event of any future fund losses, as well as unfunded commitments to certain funds. The Company does not provide, nor is it required to provide, any type of non-contractual financial or other support beyond its share of capital commitments.

We are party to mortgage loan