Company: RITM-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001556593-25-000033
Chunk: 115

Company: Rithm Capital Corp.
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 115
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 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 loan22,455 Sales(A)(23,561)Valuation reversal588 Balance at September 30, 2025$27,380 (A)Recognized when control of the property has transferred to the buyer.As of September 30, 2025, Rithm Capital had residential mortgage loans and RTLs that were in the process of foreclosure with UPBs of $36.7 million and $12.0 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 Fundings49,167 — 49,167 Payment in kind3,467 1,458 4,925 Proceeds from repayments— (25,000)(25,000)Fair Value Adjustments due to:Other factors(A)3,087 — 3,087 Balance at September 30, 2025$449,507 $8,038 $457,545 (A)There were no fair value adjustments due to changes in instrument-specific credit risk in the current period. The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of notes and loans receivable:September 30, 2025December 31, 2024Days Past DueUPBCarrying Value(A)Carrying Value Over (Under) UPBUPBCarrying Value(A)Carrying Value Over (Under) UPBCurrent$539,910 $449,507 $(90,403)$518,856 $425,366 $(93,490)90+8,038 8,038 — — — — Total$547,948 $457,545 $(90,403)$518,856 $425,366 $(93,490)(A)Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements.

13. EXCESS MORTGAGE SERVICING RIGHTS

Excess MSR assets include Rithm Capital’s ownership of Excess