Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 309

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 309
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 of Treasury securities to mitigate interest rate risk by borrowing the securities under reverse repurchase agreements and selling them into the market. As of December 31, 2024, the Company accounts for these as securities borrowing transactions and recognizes a net position presented in other assets or accrued expenses and other liabilities on the consolidated balance sheets. As of December 31, 2023, the Company did not meet the relevant netting criteria and recognized an obligation to return the borrowed securities at fair value on the consolidated balance sheets based on the value of the underlying Treasury security.As of December 31, 2024, 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:December 31,20242023Derivative and Hedging Assets:Interest rate swaps(A)$6 $106 IRLCs21,496 26,482 TBAs50,809 1,492 Foreign exchange forwards2,836 — $75,147 $28,080 Derivative and Hedging Liabilities:IRLCs$10,202 $2,678 TBAs15,628 49,087 Treasury short sales(B)1,245 — Other commitments(C)25,521 — Stock options14 — $52,610 $51,765 (A)Net of $42.0 million and $342.0 million of related variation margin accounts as of December 31, 2024 and 2023, respectively.(B)As of December 31, 2024, all Treasury short sales are covered with no economic exposure. 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. As of December 31, 2023, Treasury securities payable and related reverse repurchase agreements are presented