CONSUMER LOANS

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

CONSUMER LOANS

CONSUMER LOANS

Rithm Capital, through limited liability companies (together, the “Consumer Loan Companies”), has a co-investment in a portfolio of consumer loans. The portfolio includes personal unsecured loans and personal homeowner loans. OneMain is the servicer of the loans and provides all servicing and advancing functions for the portfolio. As of December 31, 2022, Rithm Capital owns 53.5% of the limited liability company interests in, and consolidates, the Consumer Loan Companies.

Rithm Capital also purchased certain newly originated consumer loans from a third party (“Consumer Loan Seller”). These loans are not held in the Consumer Loan Companies and have been designated as performing consumer loans, held-for-investment and are grouped and presented as part of Residential Loans and Variable Interest Entity Consumer Loans Held-for-Investment, at Fair Value on the Consolidated Balance Sheets.

The following table summarizes characteristics of the consumer loan portfolio:

	Unpaid Principal Balance		Carrying Value		Weighted Average Coupon		Weighted Average Expected Life (Years)
December 31, 2022
Total consumer loans	$	330,428	$	363,756	17.8	%	3.4
December 31, 2021
Total consumer loans	$	449,875	$	507,291	17.5	%	3.2

See Note 19 regarding the financing of consumer loans.

The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate fair value of consumer loans:

	December 31,
	2022						2021
Days Past Due	UPB		Fair Value		Fair Value Over (Under) UPB		UPB		Fair Value		Fair Value Over (Under) UPB
Current	$	325,192	$	358,057	$	32,865	$	442,481	$	499,059	$	56,578
90+	5,236		5,699		463		7,394		8,232		838
Total	$	330,428	$	363,756	$	33,328	$	449,875	$	507,291	$	57,416

The following table summarizes activities related to the carrying value of consumer loans:

Balance at December 31, 2020	$	685,575
Additional fundings(A)	29,002
Proceeds from repayments	(206,078)
Accretion of loan discount and premium amortization, net	18,925
Fair value adjustments due to:
Changes in instrument-specific credit risk	22,915
Other factors	(43,048)
Balance at December 31, 2021	$	507,291
Additional fundings(A)	29,615
Proceeds from repayments	(150,301)
Accretion of loan discount and premium amortization, net	13,891
Fair value adjustments due to:
Changes in instrument-specific credit risk	1,540
Other factors	(38,280)
Balance at December 31, 2022	$	363,756

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