Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 284

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 284
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able advance loss assumption.(C)Expected losses for advances associated with loans in the MSR portfolio are considered in the MSR fair value through a non-reimbursable advance loss assumption.Rithm Capital’s servicer advances receivable related to non-Agency MSRs generally have the highest reimbursement priority pursuant to the underlying servicing agreements (i.e., ranks “top of the waterfall”), and Rithm Capital is generally entitled to repayment from the respective loan or REO liquidation proceeds before any interest or principal is paid on the notes issued by the trust. In most cases, advances in excess of the respective loan or REO liquidation proceeds may be recovered from pool-level proceeds. Furthermore, to the extent that advances are not recoverable by Rithm Capital as a result of the subservicer’s failure to comply with applicable requirements in the relevant servicing agreements, Rithm Capital has a contractual right to be reimbursed by the subservicer. For advances on loans that have been liquidated, sold, paid in full, modified or delinquent, the Company provisioned $121.4 million, or 3.7%, and $93.7 million, or 3.3%, for expected non-recovery of advances as of December 31, 2024 and 2023, respectively.The following table summarizes servicer advances provision activity during the period:Balance as of December 31, 2022$65,428 Provision63,016 Write-offs(34,763)Balance as of December 31, 202393,681 Provision47,685 Write-offs(19,970)Balance as of December 31, 2024$121,396 See Note 18 regarding the financing of MSRs and servicer advances receivable. 

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

6. GOVERNMENT AND GOVERNMENT-BACKED SECURITIES

Government and government-backed securities include Agency securities issued by the GSEs or Ginnie Mae and U.S. Treasury (“Treasury”) securities. The following tables summarize Agency and Treasury securities by designation:December 31, 2024Gross UnrealizedWeighted AverageOutstanding Face AmountGainsLossesCarrying Value(A)Number of SecuritiesCouponYieldLife (Years)(B)Securities Designated as AFS:Agency(C)$69,295 $