Company: RITM-PC
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001556593-25-000024
Chunk: 110

Company: Rithm Capital Corp.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 1
Chunk 110
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 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.

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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 through foreclosure or deed-in-lieu of foreclosure as a result of borrower default.  REO assets are measured 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 Property received in satisfaction of loan7,520 Sales(A)(12,410)Valuation reversal672 Balance at June 30, 2025$23,680 (A)Recognized when control of the property has transferred to the buyer.As of June 30, 2025, Rithm Capital had residential mortgage loans and residential transition loans that were in the process of foreclosure with UPBs of $38.9 million and $11.9 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$393,786 $31,580 $425,366 Fundings43,096 — 43,096 Payment in kind2,145 1,458 3,603 Proceeds from repayments— (25,000)(25,000)Fair Value Adjustments due to:Other factors(A)3,866 — 3,866 Balance at June 30, 2025$442,893 $8,038 $450,931 (A)There were no fair value adjustments