Company: RITM-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001556593-25-000033
Chunk: 111

Company: Rithm Capital Corp.
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 111
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 Initial loan advances2,136,360 Construction holdbacks and draws851,226 Repayments and sales(1,475,250)Purchased loans discount amortization33 Transfer of loans to REO(7,702)Transfers to assets of consolidated entities(1,108,269)Fair Value Adjustments due to:Changes in instrument-specific credit risk(27,538)Other factors24,985 Balance at September 30, 2025$2,575,354 

31 

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

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 asset, if any, securing the loan, as well as the risk of loss associated with taking over the property or other asset, if any, including foreclosure costs. The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of loans included in residential transition loans, at fair value on the consolidated balance sheets:September 30, 2025December 31, 2024Days Past DueUPBCarrying ValueCarrying Value Over (Under) UPBUPBCarrying ValueCarrying Value Over (Under) UPBCurrent$2,472,492 $2,483,692 $11,200 $2,117,479 $2,128,802 $11,323 90+100,399 91,662 (8,737)55,234 49,273 (5,961)Total$2,572,891 $2,575,354 $2,463 $2,172,713 $2,178,075 $5,362 

See Note 18 regarding the financing of RTLs. 

11. CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

Rithm Capital considers all highly liquid short-term investments with maturities of 90 days or less when purchased to be