Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 357

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 357
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0%(1.3%)10.0%December 31, 2023$353,594 $318,998 2.2% - 7.4%(2.7%)20.0%3.0%15.0%(A)Represents the yield in excess of the risk-free rate.(B)Represents the annualized rate of the prepayments as a percentage of the total principal balance of the pool.(C)Represents the annualized rate 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 December 31, 2024 and 2023, assets measured at fair value on a nonrecurring basis were $87.6 million and $84.8 million, respectively. The $87.6 million of assets at December 31, 2024 include approximately $66.7 million of residential mortgage loans HFS and $20.9 million of REO. The $84.8 million of assets at December 31, 2023 include approximately $78.9 million of residential mortgage loans HFS and $5.9 million of 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.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)December 31, 2024Performing loans$51,011 6.3% – 8.6%(7.7