Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 271

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 1
Chunk 271
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2024$361,890 7.9% – 9.3%(8.4%)5.4% – 8.2%(8.0%)1.3% – 4.9%(3.3%)12.4% – 33.7%(26.4%)

56

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

Consumer Loans ValuationConsumer loans are valued using internal discounted cash flow pricing models with inputs such as default rates, prepayments speeds and discount rates. Elevated (deflated) default rates or reduced (increased) recovery rates (particularly for unsecured portfolios) would depress (increase) fair value. Default rate changes are often inversely correlated with recovery rate adjustments. 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 March 31, 2025:Fair ValueDiscount RatePrepayment RateCDRLoss Severity(A)SpringCastle$201,468 9.2% – 10.2% (9.4%)13.4% – 39.0%(15.1%)2.8% – 42.8%(5.1%)71.8% - 100.0%(92.7%)Marcus352,700 7.4% - 17.5%(10.3%)0.0% - 22.0%(15.6%)3.0% - 62.0%(19.6%)87.5%Consumer Loans HFI, at Fair Value$554,168 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.