Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 279

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 1
Chunk 279
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5%)21.7% – 31.2%(21.9%)Non-performing loans14,690 9.2% – 9.5%(9.3%)3.3 – 4.6(4.1)2.6% – 4.5%(3.7%)10.5% – 17.7%(13.4%)21.0% – 47.0%(31.5%)Total$64,248 December 31, 2024Performing loans$51,011 6.3% – 8.6%(7.7%)2.8 – 6.0(4.4)6.0% – 8.2%(8.0%)1.8% – 22.9%(3.6%)18.7% – 33.7%(20.7%)Non-performing loans15,659 8.5% – 9.4%(9.1%)5.2 – 6.2(5.8)1.7% – 5.4%(3.5%)1.3% – 9.3%(5.2%)12.4% – 39.9%(23.1%)Total$66,670 (A)The weighted average life is based on the expected timing of the receipt of cash flows.(B)Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance.(C)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 fair value of REO is estimated using a broker’s price opinion discounted based upon Rithm Capital’s experience with actual liquidation values and, therefore, is categorized within Level 3 of the fair value hierarchy. These discounts to the broker price opinion generally range from 10.0% – 25.0% (weighted average of 22.4%), depending on the information available to the broker.The total change in the recorded value of residential mortgage loans for which a fair value adjustment has been included in the consolidated statements of operations consists of a reversal of valuation allowance of $0.5 million and a valuation allowance of $0.2 million for the three months ended March 31, 2025 and 2024, respectively. 

The total change in the recorded value of REO for