Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 231

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 1
Chunk 231
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 represent a commitment to sell specific residential mortgage loans at prices which are fixed as of the forward commitment date. Rithm Capital enters into forward loan sale and securities delivery commitments in order to hedge the exposure related to IRLCs and residential mortgage loans that are not covered by residential mortgage loan sale commitments. 

35

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

Derivatives and economic hedges are recorded at fair value and presented in other assets or accrued expenses and other liabilities on the consolidated balance sheets, as follows:March 31, 2025December 31, 2024Derivative and Hedging Assets:Interest rate swaps and futures(A)$2 $6 IRLCs37,923 21,496 TBAs2,628 50,809 Foreign exchange forwards— 2,836 $40,553 $75,147 Derivative and Hedging Liabilities:IRLCs$3,536 $10,202 TBAs29,574 15,628 Treasury short sales(B)— 1,245 Other commitments(C)25,521 25,521 Stock options7 14 Foreign exchange forwards2,118 — $60,756 $52,610 (A)Net of $41.8 million and $42.0 million of related variation margin accounts as of as of March 31, 2025 and December 31, 2024, respectively.(B)As of December 31, 2024, the carrying value represents the net of repurchase agreements and $503.9 million of related reverse repurchase agreement lending facilities used to borrow securities to effectuate short sales of Treasury securities.  (C)During the first quarter of 2024, a subsidiary of the Company entered into an agreement with an affiliate, which could result in the subsidiary being required to make a payment under certain circumstances dependent upon amounts realized from an investment of the affiliate, subject to a maximum amount of $25.5 million. The agreement is classified as a derivative liability and measured at fair value.The following table summarizes notional amounts related to derivatives and hedging:March 31, 2025December 31, 2024Interest rate swaps(A)$9,074,000 $8,995,000 Interest rate futures(B)1,135