XML 58 R46.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

OTHER ASSETS AND LIABILITIES (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2024
Other Income Assets And Liabilities [Abstract] |
Schedule of Other Assets and Accrued Expenses and Other Liabilities | Other Assets and Accrued Expenses and Other Liabilities consist of the following:
| Other Assets |  |  |  | Accrued Expenses and Other Liabilities
| June 30, 2024 |  | December 31, 2023 (As Restated) |  |  |  | June 30, 2024 |  | December 31, 2023 (As Restated)
CLOs, at fair value(A) | 261,492 |  |  | 226,486 |  | Accounts payable |  | $ | 201,544 |  |  | $ | 165,144 |
Deferred tax asset | 283,071 |  |  | 279,019 |  | Accrued compensation and benefits |  | 159,470 |  |  | 290,464 |
Derivative and hedging assets (Note 17) | 54,357 |  |  | 28,080 |  | Deferred tax liability |  | 950,986 |  |  | 801,857 |
Due from related parties | 38,346 |  |  | 32,319 |  | Derivative liabilities (Note 17) |  | 35,100 |  |  | 51,765 |
Equity investments(B) | 244,222 |  |  | 173,882 |  | Escheat payable |  | 197,816 |  |  | 169,914 |
Excess MSRs, at fair value (Note 13) | 395,606 |  |  | 271,150 |  | Excess spread financing |  | 116,142 |  |  | — |
Goodwill (Note 15)(C) | 131,857 |  |  | 131,857 |  | Interest payable |  | 186,695 |  |  | 166,620 |
Income and fees receivable | 55,378 |  |  | 59,134 |  | Lease liability (Note 16) |  | 175,106 |  |  | 159,236 |
Intangible assets (Note 15) | 364,942 |  |  | 387,920 |  | Notes Receivable Financing(G) |  | 352,683 |  |  | — |
Loans receivable, at fair value(D) | 29,114 |  |  | 31,323 |  | Unearned income and fees |  | 30,284 |  |  | 37,468 |
Margin receivable, net(E) | 205,207 |  |  | 75,947 |  | Other liabilities |  | 238,902 |  |  | 223,293 |
Non-Agency RMBS, at fair value(A) | 548,047 |  |  | 577,543 |  |  |  | $ | 2,644,728 |  |  | $ | 2,065,761 |
Notes receivable, at fair value(F) | 364,977 |  |  | 398,227 |  |  |  |  |  |
Operating lease right-of-use assets (Note 16) | 104,983 |  |  | 104,207 |  |  |  |  |  |
Other receivables | 159,726 |  |  | 152,046 |  |  |  |  |  |
Prepaid expenses | 68,724 |  |  | 62,513 |  |  |  |  |  |
Principal and interest receivable | 154,945 |  |  | 168,516 |  |  |  |  |  |
Property and equipment | 37,428 |  |  | 40,038 |  |  |  |  |  |
REO | 27,163 |  |  | 15,507 |  |  |  |  |  |
Servicer advance investments, at fair value (Note 14) | 357,220 |  |  | 376,881 |  |  |  |  |  |
Servicing fee receivables | 162,888 |  |  | 156,777 |  |  |  |  |  |
Warrants, at fair value | 11,564 |  |  | 16,599 |  |  |  |  |  |
Other assets | 189,929 |  |  | 182,881 |  |  |  |  |  |
| $ | 4,251,186 |  |  | $ | 3,948,852 |  |  |  |  |  |  |
(A)Non-Agency RMBS and CLOs were reclassified from Real estate and other securities, as presented in prior periods, to Other assets on the Consolidated Balance Sheets as of June 30, 2024. (B)Represents equity investments in (i) commercial redevelopment projects and (ii) operating companies providing services throughout the real estate industry, including investments in Covius Holding Inc., a provider of various technology-enabled services to the mortgage and real estate sectors, preferred stock of Valon, a residential mortgage servicing and technology company, and preferred stock of Covalto Ltd. (formerly known as Credijusto Ltd.), a financial services company and (iii) funds managed by Sculptor. (C)Includes goodwill derived from the acquisition of Newrez, Guardian, Genesis and Sculptor. (D)Represents loans made pursuant to a senior credit agreement and a senior subordinated credit agreement to an entity affiliated with funds managed by an affiliate of the Former Manager. The loans are accounted for under the fair value option. (E)Represents collateral posted as a result of changes in fair value of Rithm Capital’s (i) government and government-backed securities securing its secured financing agreements and (ii) derivative instruments. (F)Represents notes receivable secured by commercial properties. The notes are accounted for under the fair value option. (G)During the second quarter of 2024, the Company transferred an investment in a note receivable with a fair value of $365.0 million subject to a repo financing of $323.5 million from a third party, to a nonconsolidated joint venture for cash consideration of $36.8 million. The transaction did not meet sale accounting under ASC 860 and, as a result, was treated as a secured borrowing for accounting purposes for which the Company elected the fair value option and is included in Other liabilities in our Consolidated Balance Sheets. The amount presented within Notes receivable financing is comprised of the repo financing and the non-recourse liability in a secured borrowing. The Company continues to reflect the transferred note in Other Assets in our Consolidated Balance Sheets, at fair value.
Schedule of Activity Related to the Carrying Value of Investments in REO | The following table presents activity for the period related to the carrying value of investments in REO:
Balance at December 31, 2023 | $ | 15,507 |
Purchases | 10,541 |
Property received in satisfaction of loan | 17,934 |
Sales(A) | (15,454) |
Valuation (provision) reversal | (1,365) |
Balance at June 30, 2024 | $ | 27,163 |
(A)Recognized when control of the property has transferred to the buyer.
Schedule of Notes and Loans Receivable | The following table summarizes residential mortgage loans outstanding by loan type:
| June 30, 2024 |  |  |  |  |  |  |  |  |  | December 31, 2023 (As Restated)
| Outstanding Face Amount |  | Carrying Value |  | Loan Count |  | Weighted Average Yield |  | Weighted Average Life (Years)(A) |  |  |  |  |  |  |  |  |  | Carrying Value
Investments of consolidated CFEs(B) | $ | 3,577,247 |  |  | $ | 3,347,246 |  |  | 10,411 |  |  | 5.5 | % |  | 25.9 |  |  |  |  |  |  |  |  |  | $ | 3,038,587 |
Residential mortgage loans, HFI, at fair value | $ | 421,507 |  |  | $ | 368,866 |  |  | 7,823 |  |  | 8.5 | % |  | 5.2 |  |  |  |  |  |  |  |  |  | $ | 379,044 |
Residential mortgage loans, HFS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Acquired performing loans(C) | 61,427 |  |  | 53,951 |  |  | 1,790 |  |  | 8.0 | % |  | 5.5 |  |  |  |  |  |  |  |  |  | 57,038 |
Acquired non-performing loans(D) | 21,874 |  |  | 18,943 |  |  | 247 |  |  | 6.1 | % |  | 3.9 |  |  |  |  |  |  |  |  |  | 21,839 |
Total residential mortgage loans, HFS | $ | 83,301 |  |  | $ | 72,894 |  |  | 2,037 |  |  | 7.5 | % |  | 5.1 |  |  |  |  |  |  |  |  |  | $ | 78,877 |
Residential mortgage loans, HFS, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Acquired performing loans(C)(E) | 850,561 |  |  | 834,383 |  |  | 3,041 |  |  | 5.8 | % |  | 11.2 |  |  |  |  |  |  |  |  |  | 400,603 |
Acquired non-performing loans(D)(E) | 233,580 |  |  | 214,071 |  |  | 1,130 |  |  | 3.7 | % |  | 23.0 |  |  |  |  |  |  |  |  |  | 204,950 |
Originated loans | 2,723,582 |  |  | 2,789,475 |  |  | 9,872 |  |  | 7.2 | % |  | 29.2 |  |  |  |  |  |  |  |  |  | 1,856,312 |
Total residential mortgage loans, HFS, at fair value | $ | 3,807,723 |  |  | $ | 3,837,929 |  |  | 14,043 |  |  | 6.7 | % |  | 24.8 |  |  |  |  |  |  |  |  |  | $ | 2,461,865 |
(A)For loans classified as Level 3 in the fair value hierarchy, the weighted average life is based on the expected timing of the receipt of cash flows. For Level 2 loans, the weighted average life is based on the contractual term of the loan. (B)Residential mortgage loans of consolidated CFEs are classified as Level 2 in the fair value hierarchy and valued based on the fair value of the more observable financial liabilities under the CFE election. (C)Performing loans are generally placed on non-accrual status when principal or interest is 90 days or more past due. (D)As of June 30, 2024, Rithm Capital has placed non-performing loans, HFS on non-accrual status, except as described in (E) below. (E)Includes $217.2 million and $192.6 million UPB of Ginnie Mae early buyout options performing and non-performing loans, respectively, on accrual status as contractual cash flows are guaranteed by the FHA. The following table summarizes Mortgage loans receivable, at fair value and mortgage loans receivable held by consolidated CFEs by loan type as of June 30, 2024:
|  | Mortgage Loans Receivable - Carrying Value(A) |  | Mortgage Loans Receivable of Consolidated CFEs - Carrying Value(A) |  | Total Carrying Value |  | % of Portfolio |  | Loan Count |  | % of Portfolio |  | Weighted Average Yield |  | Weighted Average Original Life (Months) |  | Weighted Average Committed Loan Balance to Value(B) |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 886,359 |  |  | $ | 211,184 |  |  | $ | 1,097,543 |  |  | 43.3 | % |  | 396 |  | 28.3 | % |  | 11.2 | % |  | 18.3 |  | 72.8% / 62.3% |  |  |  |  |  |  |  |  |  |
Bridge |  | 898,306 |  |  | 220,071 |  |  | 1,118,377 |  |  | 43.8 | % |  | 575 |  | 41.2 | % |  | 10.1 | % |  | 24.6 |  | 67.7% |  |  |  |  |  |  |  |  |  |
Renovation |  | 264,601 |  |  | 60,848 |  |  | 325,449 |  |  | 12.9 | % |  | 426 |  | 30.5 | % |  | 10.5 | % |  | 12.5 |  | 81.7%/ 67.4% |  |  |  |  |  |  |  |  |  |
|  | $ | 2,049,266 |  |  | $ | 492,103 |  |  | $ | 2,541,369 |  |  | 100.0 | % |  | 1,397 |  | 100.0 | % |  | 10.6 | % |  | 20.4 |  | N/A |  |  |  |  |  |  |  |  |  |
(A)Mortgage loans receivable are carried at fair value under the fair value option election. Mortgage loans of consolidated CFEs are classified as Level 2, as their value is based on the fair value of the more observable financial liabilities of consolidated CFEs. See Note 19 regarding fair value measurements. (B)Weighted by commitment LTV for bridge loans, loan-to-cost and loan-to-after-repair-value for construction and renovation loans. The following table summarizes the activity for the period of loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets:
Balance at December 31, 2023 (As Restated) |  | $ | 1,879,319 |
Initial loan advances |  | 931,574 |
Construction holdbacks and draws |  | 392,874 |
Paydowns and payoffs |  | (798,720) |
Fair value adjustments |  | 17,418 |
Purchased loans discount amortization |  | 871 |
Transfer of loans to REO |  | (4,311) |
Transfers from (to) assets of consolidated CFEs |  | (369,759) |
Balance at June 30, 2024 |  | $ | 2,049,266 |
The following table summarizes the activity for the period for notes and loans receivable:
| Notes Receivable |  |  | Loans Receivable |  | Total
Balance at December 31, 2023 | $ | 398,227 |  |  |  | $ | 31,323 |  |  | $ | 429,550 |
Fundings | — |  |  |  | — |  |  | — |
Payment in Kind | — |  |  |  | 2,211 |  |  | 2,211 |
Proceeds from repayments | (33,250) |  |  |  | (4,420) |  |  | (37,670) |
Balance at June 30, 2024 | $ | 364,977 |  |  |  | $ | 29,114 |  |  | $ | 394,091 |
Schedule of Difference Between Aggregate UPB and Aggregate Carrying Value of Notes and Loans Receivable | The following table summarizes the difference between the aggregate UPB and the aggregate carrying value of Residential mortgage loans, held-for-sale and Residential mortgage loans, held-for-investment at fair value on the Consolidated Balance Sheets which are 90 days or more past due:
|  | June 30, 2024 |  | December 31, 2023
Days Past Due |  | UPB |  | Carrying Value |  | Carrying Value Over (Under) UPB |  | UPB |  | Carrying Value |  | Carrying Value Over (Under) UPB
90+ |  | $ | 340,323 |  |  | $ | 304,967 |  |  | $ | (35,356) |  |  | $ | 313,122 |  |  | $ | 281,556 |  |  | $ | (31,566) |
The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets:
|  | June 30, 2024 |  | December 31, 2023 (As Restated)
Days Past Due |  | UPB |  | Carrying Value |  | Carrying Value Over (Under) UPB |  | UPB |  | Carrying Value |  | Carrying Value Over (Under) UPB
Current |  | $ | 1,991,233 |  |  | $ | 2,009,083 |  |  | $ | 17,850 |  |  | $ | 1,838,935 |  |  | $ | 1,837,513 |  |  | $ | (1,422) |
90+ |  | 45,996 |  |  | 40,183 |  |  | $ | (5,813) |  |  | 41,869 |  |  | 41,806 |  |  | (63) |
The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of notes and loans receivable:
|  | June 30, 2024 |  | December 31, 2023
Days Past Due |  | UPB |  | Carrying Value(A) |  | Carrying Value Over (Under) UPB |  | UPB |  | Carrying Value(A) |  | Carrying Value Over (Under) UPB
Current |  | $ | 493,354 |  |  | $ | 394,091 |  |  | $ | (99,263) |  |  | $ | 565,786 |  |  | $ | 429,550 |  |  | $ | (136,236) |
90+ |  | — |  |  | — |  |  | $ | — |  |  | — |  |  | — |  |  | $ | — |
(A)Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements.

X
- References No definition available. + Details
Name: | ritm_OtherIncomeAssetsAndLiabilitiesAbstract
Namespace Prefix: | ritm_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Schedule Of Real Estate Owned [Table Text Block] + References No definition available. + Details
Name: | ritm_ScheduleOfRealEstateOwnedTableTextBlock
Namespace Prefix: | ritm_
Data Type: | dtr-types1:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of aging analysis for financing receivable. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7A -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-7A Reference 2: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-7 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-14 Reference 4: http://www.xbrl.org/2003/role/exampleRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 55 -Paragraph 80 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479294/326-20-55-80 + Details
Name: | us-gaap_PastDueFinancingReceivablesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(4)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(3)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1 + Details
Name: | us-gaap_ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, classified as other. + References No definition available. + Details
Name: | us-gaap_ScheduleOfOtherAssetsAndOtherLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration