CONSUMER LOANS

9 Months Ended

Sep. 30, 2024

Investments In Consumer Loans Equity Method Investees [Abstract]

Rithm Capital’s consumer loan portfolio consists of (i) consumer loans purchased from Goldman Sachs Bank USA (the “Marcus loans” or “Marcus”) in June 2023 and (ii) consumer loans purchased from SpringCastle (the “SpringCastle loans” or “SpringCastle”) through a co-investment. The Marcus loan portfolio includes unsecured fixed-rate closed-end installment loans, and the SpringCastle loan portfolio includes personal unsecured loans and personal homeowner loans. The Marcus loans are serviced by Systems & Services Technologies, Inc., and the SpringCastle loans are serviced by OneMain Holdings Inc.

On June 28, 2024, Rithm Capital acquired the remaining 46.5% interest in the SpringCastle loans from the co-investor for a total purchase price of $22.0 million. Following the acquisition, Rithm Capital holds a 100% interest in the SpringCastle loans.

The following table summarizes characteristics of the consumer loan portfolio measured at fair value under the fair value option election:


	Unpaid Principal Balance		Carrying Value		Weighted Average Coupon		Weighted Average Expected Life (Years)
September 30, 2024



SpringCastle	$	219,629	$	231,039	18.1	%	3.8
Marcus	663,154		574,538		10.9	%	0.9
Total Consumer Loans	$	882,783	$	805,577	12.7	%	1.6
December 31, 2023



SpringCastle	$	260,102	$	285,632	18.2	%	3.7
Marcus	1,048,672		988,373		10.5	%	1.2
Total Consumer Loans	$	1,308,774	$	1,274,005	12.0	%	1.7

See Note 18 regarding the financing of consumer loans.

The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of consumer loans:


	September 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
SpringCastle:
Current	$	215,398	$	226,639	$	11,241	$	255,441	$	280,577	$	25,136
90+	4,231		4,400		169		4,661		5,055		394
Total SpringCastle	219,629		231,039		11,410		260,102		285,632		25,530

Marcus:
Current	557,450		482,959		(74,491)		1,014,404		956,076		(58,328)
90+	105,704		91,579		(14,125)		34,268		32,297		(1,971)
Total Marcus	663,154		574,538		(88,616)		1,048,672		988,373		(60,299)

	$	882,783	$	805,577	$	(77,206)	$	1,308,774	$	1,274,005	$	(34,769)

See Note 19 regarding fair value measurements.

The following table summarizes the activity for consumer loans for the period:


	Total
Balance at December 31, 2023	$	1,274,005


Additional fundings(A)	15,996
Proceeds from repayments	(436,014)
Accretion of loan discount and premium amortization, net	21,331
Fair value adjustments due to:
Changes in instrument-specific credit risk	(49,003)
Other factors	(20,738)
Balance at September 30, 2024	$	805,577

(A)Represents draws on consumer loans with revolving privileges.