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OTHER ASSETS AND LIABILITIES | 6 Months Ended
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Jun. 30, 2024
Other Income Assets And Liabilities [Abstract] |
OTHER ASSETS AND LIABILITIES | OTHER ASSETS AND 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. REO — REO assets are individual properties acquired by Rithm Capital or where Rithm Capital receives the property as a result of foreclosure of the underlying loan. Rithm Capital measures REO assets at the lower of cost or fair value, with valuation provision recorded in Other income in the Consolidated Statements of Operations. REO assets are managed for prompt sale and disposition. 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. As of June 30, 2024, Rithm Capital had residential mortgage loans and mortgage loans receivable that were in the process of foreclosure with UPBs of $58.8 million and $33.6 million, respectively. Notes and Loans Receivable — 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 |
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.

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