MORTGAGE LOANS RECEIVABLE

12 Months Ended

Dec. 31, 2022

Rithm Capital completed the Genesis acquisition in December 2021. Genesis specializes in originating and managing a portfolio of primarily short-term mortgage loans to fund the construction and development of, or investment in, residential properties. See Note 3 for further discussion regarding the Genesis acquisition.

The following table summarizes Mortgage Loans Receivable outstanding by loan purpose:


	Carrying Value(A)		% of Portfolio		Loan Count	% of Portfolio		Weighted Average Yield		Weighted Average Original Life (Months)	Weighted Average Committed Loan Balance to Value(B)
December 31, 2022
Construction	$	965,495	46.8	%	622	37.1	%	8.3	%	15.0	76.8% / 65.6%
Bridge	838,539		40.6	%	701	41.8	%	8.1	%	20.1	75.3%
Renovation	259,994		12.6	%	354	21.1	%	8.3	%	13.0	78.0% / 66.1%
	$	2,064,028	100.0	%	1,677	100.0	%	8.2	%	16.5	N/A

December 31, 2021
Construction	$	610,446	40.3	%	486	33.2	%	8.3	%	16.0	75.6% / 65.0%
Bridge	716,764		47.3	%	632	43.2	%	7.8	%	14.5	73.8%
Renovation	188,552		12.4	%	346	23.6	%	8.1	%	13.4	78.5% / 78.5%
	$	1,515,762	100.0	%	1,464	100.0	%	8.1	%	15.2	N/A

(A)Represents fair value.

(B)Weighted by commitment loan-to-value (“LTV”) for bridge loans, loan-to-cost (“LTC”) or loan-to-after-repair-value (“LTARV”) for construction and renovation loans.

The following table summarizes the activity for Mortgage Loans Receivables:


Balance at December 31, 2020	$	—
Genesis acquisition (Note 3)	1,505,635
Initial loan advances	60,125
Construction holdbacks and draws	12,856
Paydowns and payoffs	(60,867)
Fair value adjustments due to:
Changes in instrument-specific credit risk	—
Other factors	(1,987)
Balance at December 31, 2021	$	1,515,762

Initial loan advances	1,438,117
Construction holdbacks and draws	559,294
Paydowns and payoffs	(1,405,278)
Purchased loans premium amortization	(43,867)


Balance at December 31, 2022	$	2,064,028

The Company is subject to credit risk in connection with its investments in mortgage loans. The two primary components of credit risk are default risk, which is the risk that a borrower fails to make scheduled principal and interest payments, and severity risk, which is the risk of loss upon a borrower default on a mortgage loan or other secured or unsecured loan. Severity risk includes the risk of loss of value of the property or other asset, if any, securing the loan, as well as the risk of loss associated with taking over the property or other asset, if any, including foreclosure costs.

The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate fair value of Mortgage Loans Receivable:


	December 31,
	2022						2021
Days Past Due	UPB		Fair Value		Fair Value Over (Under) UPB		UPB		Fair Value		Fair Value Over (Under) UPB
Current	$	2,064,028	$	2,064,028	$	—	$	1,473,894	$	1,515,762	$	41,868
90+	—		—		—		—		—		—
	$	2,064,028	$	2,064,028	$	—	$	1,473,894	$	1,515,762	$	41,868

The following table summarizes the geographic distribution of the underlying Mortgage Loans Receivable as of December 31, 2022:


	Percentage of Total Loan Commitment
State Concentration	December 31, 2022		December 31, 2021
California	52.7	%	58.9	%
Washington	10.2	%	12.2	%
New York	5.9	%	5.6	%
Other U.S.	31.2	%	23.3	%
	100.0	%	100.0	%

As of December 31, 2022, the Company finances mortgage loans using a warehouse credit facility. See Note 19 for details.