CONSUMER LOANS

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

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

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


	UPB		Carrying Value		Weighted Average Coupon		Weighted Average Expected Life (Years)
March 31, 2025
SpringCastle	$	192,644	$	201,468	18.0	%	3.7
Marcus	470,473		352,700		11.1	%	0.8
Total Consumer Loans	$	663,117	$	554,168	13.1	%	1.6
December 31, 2024
SpringCastle	$	208,306	$	219,308	18.1	%	3.8
Marcus	559,317		446,257		11.0	%	1.0
Total Consumer Loans	$	767,623	$	665,565	12.9	%	1.8

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:




	March 31, 2025						December 31, 2024
Days Past Due	UPB		Carrying Value(A)		Carrying Value Over (Under) UPB		UPB		Carrying Value(A)		Carrying Value Over (Under) UPB
SpringCastle:
Current	$	188,399	$	197,088	$	8,689	$	203,923	$	214,746	$	10,823
90+	4,245		4,380		135		4,383		4,562		179
Total SpringCastle	192,644		201,468		8,824		208,306		219,308		11,002

Marcus:
Current	$	337,889	$	338,903	1,014		$	438,712	$	438,712	$	—
90+	132,584		13,797		(118,787)		120,605		7,545		(113,060)
Total Marcus	470,473		352,700		(117,773)		559,317		446,257		(113,060)

	$	663,117	$	554,168	$	(108,949)	$	767,623	$	665,565	$	(102,058)

(A)Consumer loans are carried at fair value. See Note 19 regarding fair value measurements.

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









Balance at December 31, 2024	$	665,565
Additional fundings(A)	6,595
Proceeds from repayments	(111,102)
Accretion of loan discount and premium amortization, net	5,923
Fair Value Adjustments Due To:
Changes in instrument-specific credit risk	(2,003)
Other factors	(10,810)
Balance at March 31, 2025	$	554,168

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