Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 347

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 347
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, respectively, the ranges and weighted averages of assumptions used by Rithm Capital’s valuation providers are summarized in the table below. The assumptions used by Rithm Capital’s valuation providers with respect to the remainder of non-Agency securities were not readily available.Fair ValueDiscount RatePrepayment Rate(a)CDR(b)Loss Severity(c)December 31, 2024$453,978 4.7% – 20.0%(6.9%)0.0% – 20.0%(6.3%)0.0% – 1.9%(0.5%)0.0% – 50.0%(17.0%)December 31, 2023$488,314 4.1% – 33.5%(6.3%)0.0% – 20.0%(11.6%)0.4% – 8.0%(1.7%)17.5% – 45.0%(32.7%)(a)Represents the annualized rate of the prepayments as a percentage of the total principal balance of the pool.(b)Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance of the pool.(c)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.(B)Rithm Capital was unable to obtain quotations from more than one source on these securities.(C)Presented within government and government-backed securities on the consolidated balance sheets.(D)Presented within other assets on the consolidated balance sheets.

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

Residential Mortgage Loans ValuationRithm Capital, through Newrez, originates residential mortgage loans that it intends to sell into Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securitizations. Residential mortgage loans HFS, at fair value are typically pooled together and sold into certain exit markets, depending upon underlying attributes of the loan, such as agency eligibility, product type, interest rate and credit quality. Newrez also originates non-qualified residential mortgage (“Non-QM”) loans that do not meet the qualified mortgage rules per the Consumer Financial Protection Bureau that it intends to sell to private investors. Residential mortgage loans HFS