Company: RITM-PC
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001556593-25-000024
Chunk: 167

Company: Rithm Capital Corp.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 1
Chunk 167
---
5.0%)72.1% - 100.0%(93.2%)Marcus275,093 7.4% - 17.5%(10.9%)0.0% - 22.0%(14.2%)3.0% - 62.0%(23.4%)87.5%Consumer Loans HFI, at Fair Value$465,231 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.Residential Transition Loans ValuationRithm Capital classifies certain residential transition loans as Level 3 in the fair value hierarchy. Performing residential transition loans 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 residential transition loans, with UPB of $46.4 million and fair value of $43.3 million as of June 30, 2025 and UPB of $55.2 million and fair value of $49.3 million as of December 31, 2024, were valued using estimated liquidation cash flows, derived based on the estimated value of the collateral and adjusted for estimated recoveries, costs and time to liquidate the assets.

63

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