MORTGAGE LOANS RECEIVABLE (AS RESTATED)

3 Months Ended

Mar. 31, 2024

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 as of March 31, 2024, as restated:


	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)
Construction	$	882,159	$	165,529	$	1,047,688	43.9	%	365	26.1	%	10.9	%	16.8	73.4% / 62.3%
Bridge	890,610		146,446		1,037,056		43.5	%	638	45.7	%	9.9	%	27.2	68.1%
Renovation	270,144		29,856		300,000		12.6	%	394	28.2	%	10.3	%	12.6	81.2% / 68.4%
	$	2,042,913	$	341,831	$	2,384,744	100.0	%	1,397	100.0	%	10.4	%	20.5	N/A

(A)Mortgage loans receivable are carried at fair value under the fair value option election. Mortgage loans of consolidated CFEs are classified as Level 2, as their value is based on the fair value of the more observable financial liabilities of consolidated CFEs. Mortgage loans of consolidated CFEs are

classified as Level 2, as their value is based on the fair value of the more observable financial liabilities of consolidated CFEs. See Note 20 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 Mortgage loans receivable, at fair value on the Consolidated Balance Sheets:


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

Initial loan advances	468,804
Construction holdbacks and draws	180,893
Paydowns and payoffs	(423,269)
Fair value adjustments	14,873
Purchased loans discount amortization	588
Transfer of loans to REO	(840)
Transfers from (to) assets of consolidated CFEs	(77,455)
Balance at March 31, 2024 (As Restated)	$	2,042,913

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’s 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:


	March 31, 2024 (As Restated)						December 31, 2023 (As Restated)
Days Past Due	UPB		Carrying Value		Carrying Value Over (Under) UPB		UPB		Carrying Value		Carrying Value Over (Under) UPB
Current	$	1,987,674	$	2,003,046	$	15,372	$	1,838,935	$	1,837,513	$	(1,422)
90+	41,264		39,867		(1,397)		41,869		41,806		(63)

The following table summarizes the geographic distribution of the loans included in Mortgage loans receivable, at fair value on the Consolidated Balance Sheets as of March 31, 2024, as restated:


	Percentage of Total Loan Commitment
State Concentration	March 31, 2024		December 31, 2023
California	49.1	%	47.8	%
Washington	7.0	%	7.9	%
Florida	6.8	%	7.8	%
New York	6.7	%	6.7	%
Georgia	5.1	%	2.5	%
Arizona	4.1	%	4.8	%
Virginia	3.8	%	4.1	%
Illinois	3.3	%	2.7	%
Texas	2.6	%	2.7	%
Colorado	2.3	%	3.1	%
Other US	9.2	%	9.9	%
	100.0	%	100.0	%

See Note 19 regarding the financing of mortgage loans receivable.

For a discussion of the restatement, refer to Note 3.