Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 134

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 9A
Chunk 134
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ITEM 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. The Company’s disclosure controls and procedures are designed to provide reasonable assurance that information is recorded, processed, summarized and reported accurately and on a timely basis. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures were effective.

Remediation of Previously Disclosed Material Weakness 

We previously identified and disclosed in our Amended 2023 Form 10-K/A for the year ended December 31, 2023, as well as in our Amendment No. 1 to Quarterly Report on Form 10-Q/A for the quarter ended March 31, 2024 and our Quarterly Reports on Form 10-Q for the quarters ended June 30, 2024 and September 30, 2024, a material weakness in our internal control over financial reporting. The material weakness related to the accounting treatment over consolidation of private label mortgage securitization trusts classified as VIEs. Specifically, we identified a deficiency in the design of the Company’s controls relating to the review of the consolidation accounting conclusions for private label mortgage securitization trusts. As a result, certain private label mortgage securitization trusts were incorrectly accounted for as unconsolidated VIEs rather than consolidated VIEs

As of December 31, 2024, we have completed our remediation activities including testing of the design and concluding on the operating effectiveness of the related enhanced controls. The remediation enhancement included, but was not limited to:

–involvement of external subject matter experts to advise management where necessary or where management determines the application of accounting considerations is particularly complex;

–quarterly formal review of new as well as existing transactions by a cross functional team (including accounting, legal and business) to identify changes to existing transactions that could impact previous accounting conclusions; and

–enhancement of documentation and review surrounding significant accounting judgments and key criteria supporting management’s conclusions.

Based upon the above, we believe the steps taken have improved the effectiveness of our internal control over financial reporting and we have