Company: RITM-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001556593-25-000033
Chunk: 172

Company: Rithm Capital Corp.
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 172
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7.5% - 17.5%(11.7%)0.0% - 22.0%(12.7%)3.0% - 62.0%(27.5%)87.5%Upgrade206,775 6.7% - 22.9%(7.7%)2.6% - 34.3%(17.2%)0.9% - 7.7%(3.3%)90.0%Consumer Loans HFI, at Fair Value$598,147 (A)Loss severity is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of realized loss relative to the outstanding loan balance in default.The following table summarizes certain information regarding the ranges and weighted averages of inputs (weighted by UPB) used in valuing consumer loans HFI, at fair value classified as Level 3 as of December 31, 2024:Fair ValueDiscount RatePrepayment RateCDRLoss Severity(A)SpringCastle$219,308 9.2% – 10.2%(9.4%)12.9% – 38.4%(14.5%)2.3% – 17.1%(5.1%)74.2% – 100.0%(92.3%)Marcus446,257 7.9% – 17.9%(10.1%)0.0% – 23.1%(17.8%)4.0% – 50.0%(14.3%)87.5%Consumer Loans HFI, at Fair Value$665,565 (A)Loss severity is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of realized loss relative to the outstanding loan balance in default.

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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)

Residential Transition Loans and RTL Financing Liability ValuationRithm Capital classifies certain RTLs and related financing liability as Level 3 in the fair value hierarchy. Performing RTLs are valued using an income approach through internal pricing models to forecast cash flows with inputs such as default rates, prepayments speeds and discount rates, and may include adjustments based on consensus pricing (broker quotes). Non-performing RTLs, with UPB of $100.4 million