Company: RITM-PC
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001556593-25-000024
Chunk: 118

Company: Rithm Capital Corp.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 1
Chunk 118
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 maintenance, payment and transfer, events of default, settlements and various other provisions. Changes in the value of economic hedges designed to protect against MBS and MSR fair value fluctuations, or hedging gains and losses, are reflected in the tables below. As of June 30, 2025, Rithm Capital also held interest rate lock commitments (“IRLCs”), which represent a commitment to a particular interest rate provided the borrower is able to close the loan within a specified period, and forward loan sale and securities delivery commitments, which 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. 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:June 30, 2025December 31, 2024Derivative and Hedging Assets:Interest rate swaps and futures(A)$4 $6 IRLCs52,084 21,496 TBAs6,741 50,809 Foreign exchange forwards— 2,836 $58,829 $75,147 Derivative and Hedging Liabilities:IRLCs$1,562 $10,202 TBAs59,689 15,628 Treasury short sales(B)— 1,245 Other commitments(C)28,480 25,521 Stock options113 14 Foreign exchange forwards2,350 — Interest rate futures(A)3,145 — $95,339 $52,610 (A)Net of $69.3 million and $42.0 million of related variation margin accounts as of as of June 30, 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, classified as a derivative, 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,