Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 33

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 33
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m Capital’s (i) government and government-backed securities securing its secured financing agreements and (ii) derivative instruments.(D)Represents notes receivable secured by commercial properties. The notes are measured at fair value under the FVO election. (E)During the second quarter of 2024, the Company transferred an investment in a note receivable with a fair value of $365.0 million, subject to a repo financing of $323.5 million, from a third party to a nonconsolidated joint venture for cash consideration of $48.0 million. The transaction did not meet sale accounting under ASC 860 and, as a result, was treated as a secured borrowing for accounting purposes for which the Company elected the FVO and is included in accrued expenses and other liabilities in the consolidated balance sheets. The amount presented within notes receivable financing is comprised of the repo financing and the non-recourse liability in a secured borrowing. The Company continues to reflect the transferred note in other assets in the consolidated balance sheets, at fair value.

29

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

REO — REO assets are individual properties acquired by Rithm Capital or where Rithm Capital receives the property as a result of foreclosure of the underlying loan. Rithm Capital measures REO assets at the lower of cost or fair value, with valuation provision recorded in other income (loss), net in the consolidated statements of operations. REO assets are managed for prompt sale and disposition. The following table presents activity for the period related to the carrying value of investments in REO:Balance at December 31, 2024$27,898 Purchases2,152 Property received in satisfaction of loan(1,145)Sales(A)(4,996)Valuation reversal272 Balance at March 31, 2025$24,181 (A)Recognized when control of the property has transferred to the buyer.As of March 31, 2025, Rithm Capital had residential mortgage loans and residential transition loans that were in the process of foreclosure with UPBs of $40.7 million and $20.9 million, respectively.Notes and Loans Receivable — The following table summarizes the activity for the period for notes and loans receivable:Notes ReceivableLoans ReceivableTotalBalance at December 31, 2024$