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VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended
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Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Carrying Value and Classification of the Assets and Liabilities of Consolidated VIEs and Non-Consolidated VIEs | The table below presents the carrying value and classification of the assets and liabilities of consolidated VIEs on the Consolidated Balance Sheets:
|  | Advance Purchaser |  | Newrez Joint Ventures | Residential Mortgage Loans | Consumer Loan Companies |  |  |  |  | Sculptor Loan Financing Partners | Consolidated CFEs(B) | Total |
|  |  |  |  |  |  | Loan Securitizations - Mortgage Loans Receivable | Loan Securitizations - Residential Mortgage Loans | Consolidated Funds |
June 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Servicer advance investments, at fair value |  | $ | 357,220 |  |  | $ | — |  | $ | — |  | — |  |  |  |  |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 357,220 |  |
Residential mortgage loans, HFS, at fair value |  | — |  |  | — |  | 407,036 |  | — |  |  |  |  |  | — |  | — |  | — |  | — |  | 407,036 |  |
Consumer loans |  | — |  | — |  | — |  | — |  |  |  |  |  | — |  | — |  | — |  | — |  | — |  |
Assets of consolidated CFEs - investments |  | — |  | — |  | — |  | — |  |  |  |  | — |  | 492,103 |  | 3,347,335 |  | 343,121 |  | 4,182,559 |  |
Cash and cash equivalents |  | 5,825 |  | 18,571 |  | — |  | — |  |  |  |  | — |  | — |  | — |  | — |  | 24,396 |  |
Restricted cash |  | 7,605 |  | — |  | 5,986 |  | — |  |  |  |  |  | 5,104 |  | 4,074 |  | 11,851 |  | 10,099 |  | 44,719 |  |
Other assets |  | 14 |  |  | 1,313 |  | — |  | — |  |  |  |  |  | 41,660 |  | 23,427 |  | — |  | 793 |  | 67,207 |  |
Total Assets |  | $ | 370,664 |  |  | $ | 19,884 |  | $ | 413,022 |  | $ | — |  |  |  |  |  | $ | 46,764 |  | $ | 519,604 |  | $ | 3,359,186 |  | $ | 354,013 |  | $ | 5,083,137 |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Secured financing agreements(A) |  | — |  |  | — |  | 311,537 |  | — |  |  |  |  |  | — |  | — |  | — |  | — |  | 311,537 |  |
Secured notes and bonds payable(A) |  | 262,069 |  |  | — |  | — |  | — |  |  |  |  |  | — |  | — |  | — |  | — |  | 262,069 |  |
Notes payable of consolidated CFEs(A) |  | — |  |  | — |  | — |  | — |  |  |  |  |  | — |  | 451,682 |  | 2,887,692 |  | 221,801 |  | 3,561,175 |  |
Accrued expenses and other liabilities |  | 2,052 |  |  | 2,008 |  | — |  | — |  |  |  |  |  | 24 |  | 548 |  | 12,185 |  | 1,925 |  | 18,742 |  |
Total Liabilities |  | $ | 264,121 |  |  | $ | 2,008 |  | $ | 311,537 |  | $ | — |  |  |  |  |  | $ | 24 |  | $ | 452,230 |  | $ | 2,899,877 |  | $ | 223,726 |  | $ | 4,153,523 |  |
December 31, 2023 (As Restated) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Servicer advance investments, at fair value |  | $ | 367,803 |  |  | $ | — |  | $ | — |  | $ | — |  |  |  |  |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 367,803 |  |
Residential mortgage loans, HFS, at fair value |  | — |  |  | — |  | 1,112,097 |  | — |  |  |  |  |  | — |  | — |  | — |  | — |  | 1,112,097 |  |
Consumer loans |  | — |  |  | — |  | — |  | 285,632 |  |  |  |  |  | — |  | — |  | — |  | — |  | 285,632 |  |
Assets of consolidated CFEs - investments |  | — |  |  | — |  | — |  | — |  |  |  |  |  | — |  | 353,594 |  | 3,038,587 |  | 321,856 |  | 3,714,037 |  |
Cash and cash equivalents |  | 5,381 |  |  | 18,159 |  | — |  | — |  |  |  |  |  | — |  | — |  | — |  | — |  | 23,540 |  |
Restricted cash |  | 8,273 |  |  | — |  | 6,113 |  | 6,301 |  |  |  |  |  | — |  | 7,572 |  | 6,263 |  | 18,013 |  | 52,535 |  |
Other assets |  | 9 |  |  | 688 |  | — |  | 4,325 |  |  |  |  |  | — |  | 4,532 |  | — |  | 1,060 |  | 10,614 |  |
Total Assets |  | $ | 381,466 |  |  | $ | 18,847 |  | $ | 1,118,210 |  | $ | 296,258 |  |  |  |  |  | $ | — |  | $ | 365,698 |  | $ | 3,044,850 |  | $ | 340,929 |  | $ | 5,566,258 |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Secured financing agreements(A) |  | — |  |  | — |  | 996,845 |  | — |  |  |  |  |  | — |  | — |  | — |  | — |  | 996,845 |  |
Secured notes and bonds payable(A) |  | 274,404 |  |  | — |  | — |  | 235,770 |  |  |  |  |  | — |  | — |  | — |  | — |  | 510,174 |  |
Notes payable of consolidated CFEs(A) |  | — |  |  | — |  | — |  | — |  |  |  |  |  | — |  | 318,998 |  | 2,618,082 |  | 218,157 |  | 3,155,237 |  |
Accrued expenses and other liabilities |  | 2,606 |  |  | 2,240 |  | 5,382 |  | 1,507 |  |  |  |  |  | — |  | 371 |  | 6,263 |  | 1,763 |  | 20,132 |  |
Total Liabilities |  | $ | 277,010 |  |  | $ | 2,240 |  | $ | 1,002,227 |  | $ | 237,277 |  |  |  |  |  | $ | — |  | $ | 319,369 |  | $ | 2,624,345 |  | $ | 219,920 |  | $ | 4,682,388 |  |
(A)The creditors of the VIEs do not have recourse to the general credit of Rithm Capital Corp., and the assets of the VIEs are not directly available to satisfy Rithm Capital Corp’s obligations. (B)Reflect Assets of consolidated CFEs - Investments, at fair value and other assets and Liabilities of consolidated CFEs - Notes payable, at fair value and other liabilities on the Consolidated Balance Sheets. The following table summarizes the carrying value of real estate bonds issued by unconsolidated VIEs and retained by the Company, which reflects the Company’s maximum exposure to loss, as well as the UPB of transferred loans. These bonds are presented as part of Other assets on the Consolidated Balance Sheets:
|  | June 30, 2024 |  | December 31, 2023 (As Restated)
Residential mortgage loan UPB and other collateral |  | $ | 7,761,760 |  | $ | 8,237,692
Weighted average delinquency(A) |  | 5.3% |  | 5.3%
Net credit losses |  | $ | 161,752 |  | $ | 162,061
Face amount of debt held by third parties |  | $ | 7,101,285 |  | $ | 7,596,408
Carrying value of bonds retained by Rithm Capital(B)(C) |  | $ | 583,607 |  | $ | 543,447
Year to date cash flows received by Rithm Capital on these bonds |  | $ | 43,576 |  | $ | 91,401
(A)Represents the percentage of the UPB that is 60+ days delinquent. (B)Includes real estate bonds retained pursuant to required risk retention regulations. (C)Classified within Level 3 of the fair value hierarchy as the valuation is based on certain unobservable inputs including discount rate, prepayment rates and loss severity. See Note 19 for details on unobservable inputs. The following table summarizes the Company’s involvement with VIEs related to the asset management business that are not consolidated. The Company’s involvement, through Sculptor, is generally limited to providing asset management services and, in certain cases, investments in the VIEs. The maximum exposure to loss represents the potential loss of current investments or income and fees receivables from these entities, as well as the obligation to repay unearned revenues, primarily incentive income subject to clawback, in the event of any future fund losses, as well as unfunded commitments to certain funds that are VIEs. The Company does not provide, nor is it required to provide, any type of non-contractual financial or other support to its VIEs that are not consolidated beyond its share of capital and other commitments described in Note 25.
|  | June 30, 2024 |  | December 31, 2023
Net assets of unconsolidated VIEs in which the Company has a variable interest |  | $ | 12,486,344 |  | $ | 12,782,124
Maximum risk of loss as a result of the Company’s involvement with unconsolidated VIEs: |  |  |  |
Unearned income and fees |  | 30,284 |  | 37,468
Income and fees receivable |  | 14,717 |  | 43,250
Investments |  | 546,490 |  | 533,026
Unfunded commitments(A) |  | 186,109 |  | 207,575
Other commitments |  | 24,364 |  | —
Maximum Exposure to Loss |  | $ | 801,964 |  | $ | 821,319
(A)Includes commitments from certain current and former employees and executive managing directors in the amounts of $111.3 million and $97.5 million as of June 30, 2024 and December 31, 2023, respectively. The following table summarizes the carrying value of the Company’s unconsolidated commercial real estate projects which reflects the Company’s maximum exposure to loss. See Note 25 regarding certain guarantees provided in connection with the investments. These investments are presented as part of Equity investments within other assets on the Consolidated Balance Sheets:
|  | June 30, 2024 |  | December 31, 2023
Carrying value of commercial real estate held within unconsolidated VIEs |  | $ | 133,458 |  |  | $ | 66,652 |
Carrying value of Rithm Capital’s investments in unconsolidated commercial real estate VIEs |  | $ | 41,721 |  |  | $ | 29,210 |
Schedule of Others’ Interests in the Equity of Consolidated Subsidiaries and Others’ Interests in the Net Income (Loss) | Others’ interests in the equity of consolidated subsidiaries is computed as follows:
| June 30, 2024 |  | December 31, 2023
| Total Consolidated Equity |  | Others' Ownership Interest |  | Others' Interest in Equity of Consolidated Subsidiary |  | Total Consolidated Equity |  | Others' Ownership Interest |  | Others' Interest in Equity of Consolidated Subsidiary
Advance Purchaser | $ | 106,544 |  |  | 10.7 | % |  | $ | 11,389 |  |  | $ | 104,458 |  |  | 10.7 | % |  | $ | 11,157 |
Newrez Joint Ventures | $ | 17,876 |  |  | 49.5 | % |  | $ | 8,849 |  |  | $ | 16,607 |  |  | 49.5 | % |  | $ | 8,220 |
Consumer Loan Companies(A) | $ | 54,249 |  |  | — | % |  | $ | — |  |  | $ | 72,361 |  |  | 46.5 | % |  | $ | 33,748 |
Excess MSRs | $ | 147,000 |  |  | 20.0 | % |  | $ | 29,400 |  |  | $ | — |  |  | — | % |  | $ | — |
Asset Management | $ | 740,265 |  |  | n/m(B) |  | $ | 44,383 |  |  | $ | 673,523 |  |  | n/m(B) |  | $ | 40,971 |
Others’ interests in the net income (loss) is computed as follows:
| Three Months Ended June 30,
| 2024 |  | 2023 |  |
| Net income (loss) |  | Others’ ownership interest as a percent of total |  | Others’ interest in net income (loss) of consolidated subsidiaries |  | Net income (loss) |  | Others’ ownership interest as a percent of total |  | Others’ interest in net income (loss) of consolidated subsidiaries |  |  |  |  |  |
Advance Purchaser | $ | (1,149) |  |  | 10.7 | % |  | $ | (123) |  |  | $ | 7,927 |  |  | 10.7 | % |  | $ | 845 |  |  |  |  |  |  |
Newrez Joint Ventures | $ | 2,052 |  |  | 49.5 | % |  | $ | 1,016 |  |  | $ | 781 |  |  | 49.5 | % |  | $ | 386 |  |  |  |  |  |  |
Consumer Loan Companies(A) | $ | (7,318) |  |  | 46.5 | % |  | $ | (3,403) |  |  | $ | 12,168 |  |  | 46.5 | % |  | $ | 5,658 |  |  |  |  |  |  |
Excess MSRs | $ | 23,182 |  |  | 20.0 | % |  | $ | 4,636 |  |  | $ | — |  | 0 | — | % |  | $ | — |  |  |  |  |  |  |
Asset Management | $ | 25,964 |  |  | n/m(B) |  | $ | 835 |  |  | $ | — |  |  | n/m(B) |  | $ | — |  |  |  |  |  |  |
| Six Months Ended June 30,
| 2024 |  | 2023 |  |
| Net income (loss) |  | Others’ ownership interest as a percent of total |  | Others’ interest in net income (loss) of consolidated subsidiaries |  | Net income (loss) |  | Others’ ownership interest as a percent of total |  | Others’ interest in net income (loss) of consolidated subsidiaries |  |  |  |  |  |
Advance Purchaser | $ | 8,381 |  |  | 10.7 | % |  | $ | 895 |  |  | $ | 6,557 |  |  | 10.7 | % |  | $ | 699 |  |  |  |  |  |  |
Newrez Joint Ventures | $ | 2,164 |  |  | 49.5 | % |  | $ | 1,071 |  |  | $ | 695 |  |  | 49.5 | % |  | $ | 344 |  |  |  |  |  |  |
Consumer Loan Companies(A) | $ | (5,127) |  |  | 46.5 | % |  | $ | (2,384) |  |  | $ | 9,776 |  |  | 46.5 | % |  | $ | 4,546 |  |  |  |  |  |  |
Excess MSRs | $ | 23,182 |  |  | 20.0 | % |  | $ | 4,636 |  |  | $ | — |  | 0 | — | % |  | $ | — |  |  |  |  |  |  |
Asset Management | $ | (13) |  |  | n/m(B) |  | $ | 2,195 |  |  | $ | — |  |  | n/m(B) |  | $ | — |  |  |  |  |  |  |
(A)On June 28, 2024 Rithm Capital purchased the remaining 46.5% interest in the Consumer Loan Companies from Blackstone for a total purchase price of $22.0 million. (B)Percentage in the table above deemed “n/m” are not meaningful. Noncontrolling interests related to Sculptor represents the ownership interests in certain funds held by entities or persons other than the Company. These interests substantially relate to interests held by Sculptor employees in real estate funds managed by the Company adjusted for their capital activity and allocated earnings in such funds. Such employees’ portion of carried interest is expensed and recorded within compensation and benefits on the Consolidated Statements of Operations and therefore excluded in the calculation of noncontrolling interests.

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- Definition Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481203/810-10-50-3 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 5A -Publisher FASB -URI https://asc.fasb.org/1943274/2147481203/810-10-50-5A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481203/810-10-50-9 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481203/810-10-50-4 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481203/810-10-50-6 + Details
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