MORTGAGE LOANS RECEIVABLE

3 Months Ended

Mar. 31, 2023

Rithm Capital completed the acquisition of Genesis 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.

The following table summarizes Mortgage Loans Receivable outstanding by loan purpose as of March 31, 2023:


	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)
Construction	$	913,495	46.9	%	515	39.7	%	8.7	%	15.1	76.8% / 65.5%
Bridge	815,663		41.9	%	546	42.2	%	8.6	%	20.5	73.0%
Renovation	217,264		11.2	%	234	18.1	%	8.9	%	13.9	77.8% / 65.3%
	$	1,946,422	100.0	%	1,295	100.0	%	8.7	%	17.2	N/A

(A)Represents fair value.

(B)Weighted by commitment loan-to-value (“LTV”) for bridge loans, loan-to-cost (“LTC”) and 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, 2022	$	2,064,028
Initial loan advances	275,907
Construction holdbacks and draws	153,730
Paydowns and payoffs	(547,243)




Balance at March 31, 2023	$	1,946,422

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 past due status and difference between the aggregate unpaid principal balance and the aggregate fair value of Mortgage Loans Receivable:


	March 31, 2023						December 31, 2022
Days Past Due	UPB		Fair Value		Fair Value Over (Under) UPB		UPB		Fair Value		Fair Value Over (Under) UPB
Current	$	1,946,422	$	1,946,422	$	—	$	2,064,028	$	2,064,028	$	—
90+	—		—		—		—		—		—

The following table summarizes the geographic distribution of the underlying Mortgage Loans Receivable as of March 31, 2023:


State Concentration	Percentage of Total Loan Commitment
California	54.9	%
Washington	9.7	%
Colorado	7.2	%
New York	5.6	%
Arizona	5.5	%
Florida	4.2	%
North Carolina	2.5	%
Texas	2.0	%
New Jersey	1.6	%
Washington D.C.	1.3	%
Other U.S.	5.5	%
	100.0	%

See Note 18 regarding the financing of Mortgage Loans Receivable.