OTHER ASSETS AND LIABILITIES (AS RESTATED)

12 Months Ended

Dec. 31, 2023

OTHER ASSETS AND LIABILITIES (AS RESTATED)

Other Assets and Accrued Expenses and Other Liabilities consist of the following:


	Other Assets					Accrued Expenses and Other Liabilities
	December 31,					December 31,
	2023 (As Restated)		2022 (As Restated)			2023 (As Restated)		2022 (As Restated)
Deferred tax asset	$	279,019	$	—	Accounts payable	$	165,144	$	155,492
Derivative and hedging assets (Note 19)	28,080		52,229		Accrued compensation and benefits	290,464		112,762
Due from related parties	32,319		—		Deferred tax liability	801,857		711,855
Equity investments(A)	173,882		71,388		Derivative liabilities (Note 19)	51,765		18,064
Excess MSRs, at fair value (Note 6)	271,150		321,803		Escheat payable	169,914		113,772
Goodwill (Note 17)(B)	131,857		85,199		Interest payable	166,620		87,351
Income and fees receivable	59,134		—		Lease liability (Note 18)	159,236		101,225
Intangible assets (Note 17)	387,920		141,413		Unearned income and fees	37,468		—
Loan Receivable, at fair value(C)	31,323		94,401		Other liabilities	223,293		185,797
Margin receivable, net(D)	75,947		20,614			$	2,065,761	$	1,486,318
Notes Receivable(E)	398,227		—
Operating lease right-of-use asset (Note 18)	104,207		77,329
Other receivables	152,046		146,131
Prepaid expenses	62,513		60,817
Principal and interest receivable	168,516		106,373
Property and equipment	40,038		37,883
Real Estate Owned	15,507		19,379
Servicer advances, at fair value (Note 8)	376,881		398,820
Servicing fee receivables	156,777		128,438
Warrants, at fair value	16,599		19,346
Other assets	182,881		132,809
	$	3,144,823	$	1,914,372

(A)Represents equity investments in (i) commercial redevelopment projects and (ii) operating companies providing services throughout the real estate industry, including investments in Covius Holding Inc., a provider of various technology-enabled services to the mortgage and real estate sectors, preferred stock of Valon, a residential mortgage servicing and technology company, and preferred stock of Covalto Ltd. (formerly known as Credijusto Ltd.), a financial services company and (iii) funds related to Sculptor.

(B)Includes goodwill derived from the acquisition of Shellpoint Partners LLC, Guardian, Genesis and Sculptor.

(C)Represents loans made pursuant to a senior credit agreement and a senior subordinated credit agreement to an entity affiliated with funds managed by an affiliate of the Former Manager. The loans are accounted for under the fair value option.

(D)Represents collateral posted as a result of changes in fair value of Rithm Capital’s (i) real estate securities securing its secured financing agreements and (ii) derivative instruments.

(E)Represents notes receivable secured by commercial properties. The notes are accounted for under the fair value option.

Real Estate Owned (REO) — REO assets are individual properties acquired by Rithm Capital or where Rithm Capital receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession). Rithm Capital measures REO assets at

the lower of cost or fair value, with valuation provision recorded in other income in the Consolidated Statements of Operations. REO assets are managed for prompt sale and disposition.

The following table presents activity related to the carrying value of investments in REO:


Balance at December 31, 2021	$	21,641
Purchases	210
Property received in satisfaction of loan	14,936
Sales(A)	(18,349)

Valuation (provision) reversal	941
Balance at December 31, 2022	$	19,379
Purchases	—

Property received in satisfaction of loan	21,943
Sales(A)	(27,512)

Valuation (provision) reversal	1,697
Balance at December 31, 2023	$	15,507

(A)Recognized when control of the property has transferred to the buyer.

As of December 31, 2023, Rithm Capital had residential mortgage loans and mortgage loans receivable that were in the process of foreclosure with UPBs of $55.6 million and $38.4 million, respectively.

Notes and Loans Receivable — The following table summarizes the activity for notes and loans receivable:


	Notes Receivable		Loans Receivable		Total
Balance at December 31, 2021	$	60,549	$	229,631	$	290,180
Fundings	9,000		—		9,000
Payment in Kind	3,741		9,195		12,936
Proceeds from repayments	(9,000)		(143,256)		(152,256)
Transfer to other assets	(1,000)		—		(1,000)
Fair value adjustments due to:
Changes in instrument-specific credit risk	(63,062)		—		(63,062)
Other factors	(228)		(1,169)		(1,397)
Balance at December 31, 2022	$	—	$	94,401	$	94,401
Fundings(A)	399,977		—		399,977
Payment in Kind	—		5,636		5,636
Proceeds from repayments	(1,750)		(68,945)		(70,695)
Transfer to other assets	—		—		—
Fair value adjustments due to:
Changes in instrument-specific credit risk	—		—		—
Other factors	—		231		231
Balance at December 31, 2023	$	398,227	$	31,323	$	429,550

(A)Rithm Capital acquired two notes receivable during 2023 collateralized by commercial real estate.

The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of notes and loans receivable:


	December 31,
	2023						2022
Days Past Due	UPB		Carrying Value(A)		Carrying Value Over (Under) UPB		UPB		Carrying Value(A)		Carrying Value Over (Under) UPB
Current	$	565,786	$	429,550	$	(136,236)	$	157,745	$	94,401	$	(63,344)
90+	—		—		—		—		—		—

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

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