MORTGAGE LOANS RECEIVABLE (AS RESTATED)

12 Months Ended

Dec. 31, 2023

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.

On August 24, 2023 Rithm Capital acquired a portfolio of loans from Morgan Stanley Bank, N.A. with a face value of $148.4 million. The portfolio consists of fixed rate bridge and renovation loans and is master serviced by Genesis.

The following table summarizes Mortgage loans receivable, at fair value and mortgage loans receivable held by consolidated CFEs by loan type:


	Mortgage Loans Receivable - Carrying Value(A)		Mortgage Loans Receivable of Consolidated CFEs - Carrying Value(A)		Total Carrying Value		% of Portfolio		Loan Count	% of Portfolio		Weighted Average Yield		Weighted Average Original Life (Months)	Weighted Average Committed Loan Balance to Value(B)
December 31, 2023 (As Restated)
Construction	$	787,740	$	146,391	$	934,131	41.8	%	371	27.0	%	10.5	%	16.2	74.0% / 63.0%
Bridge	841,040		168,627		1,009,667		45.3	%	652	47.6	%	9.6	%	26.5	68.9%
Renovation	250,539		38,576		289,115		12.9	%	349	25.4	%	10.0	%	13.5	80.5% / 68.6%
	$	1,879,319	$	353,594	$	2,232,913	100.0	%	1,372	100.0	%	10.1	%	20.4	N/A

December 31, 2022 (As Restated)
Construction	$	810,082	$	155,414	$	965,496	46.8	%	622	37.1	%	8.3	%	15.0	76.8% / 65.6%
Bridge	687,408		151,130		838,538		40.6	%	701	41.8	%	8.1	%	20.1	75.3%
Renovation	216,563		43,431		259,994		12.6	%	354	21.1	%	8.3	%	13.0	78.0% / 66.1%
	$	1,714,053	$	349,975	$	2,064,028	100.0	%	1,677	100.0	%	8.2	%	16.5	N/A

(A)Mortgage loans receivable are carried at fair value. See Note 21 regarding fair value measurements.

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

The following table summarizes the activity for the period of loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets:


Balance at December 31, 2021 (As Restated)	$	1,515,762
Initial loan advances	1,438,117
Construction holdbacks and draws	483,889
Paydowns and payoffs	(1,234,445)

Transfers to assets of consolidated CFEs	(445,403)



Purchased loans discount (premium) amortization	(43,867)
Balance at December 31, 2022 (As Restated)	$	1,714,053
Purchases	146,631
Initial loan advances	1,380,187
Construction holdbacks and draws	667,656
Paydowns and payoffs	(1,671,895)
Purchased loans discount (premium) amortization	668
Transfers to assets of consolidated CFEs	(357,614)
Fair value adjustments due to:

Other factors	(367)
Balance at December 31, 2023 (As Restated)	$	1,879,319

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 UPB and the aggregate carrying value of loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets:


	December 31,
	2023 (As Restated)						2022 (As Restated)
Days Past Due	UPB		Carrying Value		Carrying Value Over (Under) UPB		UPB		Carrying Value		Carrying Value Over (Under) UPB
Current	$	1,838,935	$	1,837,513	$	(1,422)	$	1,714,054	$	1,714,054	$	—
90+	41,869		41,806		(63)		—		—		—
	$	1,880,804	$	1,879,319	$	(1,485)	$	1,714,054	$	1,714,054	$	—

The following table summarizes the geographic distribution of loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets as of December 31, 2023:


	Percentage of Total Loan Commitment
State Concentration	December 31, 2023 (As Restated)		December 31, 2022 (As Restated)
California	47.8	%	52.7	%
Washington	7.9	%	10.2	%
Florida	7.8	%	6.3	%
New York	6.7	%	5.9	%
Arizona	4.8	%	6.6	%
Virginia	4.1	%	0.7	%
Colorado	3.1	%	6.7	%
Illinois	2.7	%	0.5	%
Texas	2.7	%	1.9	%
Georgia	2.5	%	0.8	%
Other U.S.	9.9	%	7.7	%
	100.0	%	100.0	%

See Note 20 regarding the financing of mortgage loans receivable.

For a discussion of the restatement, refer to Notes 3 and 28.