Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 353

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 353
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100.0%(86.1%)1.0 – 426.7(281.8)December 31, 2023$23,804 0.0% – 100.0%(80.8%)7.0 – 331.3(210.5)

187

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

Asset-Backed Securities IssuedAs of December 31, 2024 and 2023, Rithm Capital was the primary beneficiary of the SCFT 2020-A (as defined in Note 20) securitization, and therefore, Rithm Capital’s consolidated balance sheets include the asset-backed securities issued by the trust in the SCFT 2020-A securitization. Rithm Capital elected the FVO for the securities and valued them consistently with non-Agency securities described above.The following table summarizes certain information regarding the ranges and weighted averages of inputs used in valuing asset-backed securities issued:Fair ValueDiscount RatePrepayment RateCDRLoss SeverityDecember 31, 2024$185,460 5.4% 14.5%5.1%92.3%December 31, 2023$235,770 6.0%17.0%4.8%93.3%Notes Receivable, Notes Receivable Financing and Loans ReceivableFrom time to time, Rithm Capital purchases notes and loans receivable that are generally collateralized by commercial real estate assets. Rithm Capital generally uses internal discounted cash flow pricing models to estimate the fair value of notes receivable, notes receivable financing and loans receivable. Due to the fact that the fair value of Rithm Capital’s notes receivable, notes receivable financing and loans receivable are based significantly on unobservable inputs, these are classified as Level 3 in the fair value hierarchy.Future cash flows are generally estimated using contractual economic terms as well as significant unobservable inputs, such as the underlying collateral performance. Other significant unobservable inputs include discount rates which estimate the market participants’ required rates of return.The following table summarizes certain information regarding the fair value and significant inputs used in valuing Rithm Capital’s notes receivable, notes receivable financing and loans receivable:Fair Value Discount RateDecember 31, 2024Notes receivable$393,786 9.0 %Notes