Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 190

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 190
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 AssetsCost AssetsMSRs and MSR financing receivablesGovernment and government-backed securities, available-for-saleResidential mortgage loans, HFS, at lower of cost or fair valueGovernment and government-backed securities, at fair valueSFR propertiesResidential mortgage loans, HFI, at fair valueTreasury securities, held-to-maturityResidential mortgage loans, HFS, at fair valueServicer advances receivableConsumer loans, at fair valueReverse repurchase agreementsResidential transition loans, at fair valueCertain Assets Included in Other Assets, Primarily:Residential mortgage loans subject to repurchaseDeferred tax assetCertain Assets Included in Other Assets, Primarily:Income and fees receivableCLOs, at fair valueTrade receivablesDerivative and hedging assetsREOEquity investments, at fair valueOther assets, except as noted otherwiseExcess MSRs, at fair valueNon-Agency RMBS, at fair valueNotes receivable, at fair valueServicer advance investmentsInvestments of consolidated CFEs, at fair value

RECENT ACCOUNTING PRONOUNCEMENTS

See Note 2 to our consolidated financial statements.

92

 RESULTS OF OPERATIONS

Factors Impacting Comparability of Our Results of Operations

Our net income is primarily generated from net interest income, servicing fee revenue less cost and gain on sale of loans less cost to originate. Changes in various factors such as market interest rates, prepayment speeds, estimated future cash flows, servicing costs and credit quality could affect the amount of basis premium to be amortized or discount to be accreted into interest income for a given period. Prepayment speeds vary according to the type of investment, conditions in the financial markets, competition and other factors, none of which can be predicted with any certainty. Our operating results may also be affected by credit losses in excess of initial estimates or unanticipated credit events experienced by borrowers whose mortgage loans underlie the MSRs, residential transition loans, or the Non-Agency RMBS held in our investment portfolio.

During the year ended December 31, 2024, interest rates remained elevated. Higher interest rates can decrease a borrower’s ability or willingness to enter into mortgage transactions, including residential, business purpose and commercial loans. Higher interest rates also increase our financing costs.

In the second quarter of 2024, we acquired Computershare, including SLS. As a result of this acquisition, our revenues, specifically interest income revenues, and expenses include Computershare from the date of acquisition, as well as include acquisition- and integration-related costs