Company: RITM-PC
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001556593-25-000024
Chunk: 174

Company: Rithm Capital Corp.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 1
Chunk 174
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 of the involuntary prepayments (defaults) as a percentage of the total principal balance of the pool.(D)Represents the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding balance of the loans in default. Assets and Liabilities Measured at Fair Value on a Nonrecurring BasisCertain assets are measured at fair value on a nonrecurring basis; that is, they are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances, such as when there is evidence of impairment. For residential mortgage loans HFS, foreclosed real estate accounted for as REO and SFR properties, Rithm Capital measures the assets at the lower of cost or fair value which may require, from time to time, a nonrecurring fair value adjustment. As of June 30, 2025 and December 31, 2024, assets measured at fair value on a nonrecurring basis were $79.5 million and $87.6 million, respectively, of which, approximately $61.0 million and $66.7 million, respectively, related to residential mortgage loans, HFS, and $18.5 million and $20.9 million, respectively, related to REO. The fair value of Rithm Capital’s residential mortgage loans, HFS is estimated based on a discounted cash flow model analysis using internal pricing models and is categorized within Level 3 of the fair value hierarchy.

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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)

The following table summarizes the inputs (weighted by fair value) used in valuing these residential mortgage loans:Fair Value Discount RateWeighted Average Life (Years)(A)Prepayment RateCDR(B)Loss Severity(C)June 30, 2025Performing loans$47,792 6.8% – 8.5%(6.8%)4.3 – 6.3(4.3)4.0% – 6.7%(6.7%)0.9% – 3.6%(2.1%)26.6% – 48.9%(31.6%)Non-performing loans13,174 9.2% – 12.0%(10.3%)3.4 – 4