Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 223

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 1
Chunk 223
---
 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$393,786 $31,580 $425,366 Fundings(A)37,913 — 37,913 Payment in kind981 1,137 2,118 Proceeds from repayments— (15,000)(15,000)Fair Value Adjustments Due To:Other factors(B)1,444 — 1,444 Balance at March 31, 2025$434,124 $17,717 $451,841 (A)Rithm Capital acquired one additional note receivable during 2025 collateralized by commercial real estate.(B)There were no fair value adjustments due to changes in instrument-specific credit risk in the current period. The following table