Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 345

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 345
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 many financial instruments.•Discount Rate: The discount rates used by Rithm Capital are derived from market data on pricing of MSRs backed by similar collateral and the advances made thereon.

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

Real Estate and Other Securities ValuationReal estate and other securities valuation methodology and results are detailed below. Increased (decreased) prepayment speeds, default rates, or loss severity assumptions would decrease (increase) valuations. Generally, a change in default rate assumption is accompanied by a directionally similar change in loss severity assumptions. Treasury securities are valued using market-based prices published by the U.S. Department of the Treasury and are classified as Level 1.Fair ValueAsset TypeOutstanding Face AmountAmortized Cost BasisMultiple Quotes(A)Single Quote(B)TotalLevelDecember 31, 2024Government-backed securities(C)$6,672,189 $6,510,235 $6,450,643 $— $6,450,643 2 CLOs(D)243,355 234,397 217,049 25,178 242,227 2 & 3Non-Agency and other securities(D)8,962,730 515,262 529,146 23,651 552,797 3 Total$15,878,274 $7,259,894 $7,196,838 $48,829 $7,245,667 December 31, 2023Government-backed securities(C)$8,590,260 $8,417,025 $8,533,130 $— $8,533,130 2 CLOs(D)244,336 223,634 — 226,486 226,486 3 Non-Agency and other securities(D)9,727,443 555,239 577,543 — 577,543 3 Total$18,562,039 $9,195,898 $9,110,673 $226,486 $9,337,159 (A)Rithm Capital generally obtains pricing service quotations or broker quotations from two sources. Rithm Capital evaluates quotes received, determines one as being most representative of fair value and does not use an average of the quotes. Even if Rithm