OTHER ASSETS AND LIABILITIES

6 Months Ended

Jun. 30, 2025

Other assets and accrued expenses and other liabilities — other assets and accrued expenses and other liabilities on the consolidated balance sheets consist of the following:


	Other Assets					Accrued Expenses and Other Liabilities


	June 30, 2025		December 31, 2024			June 30, 2025		December 31, 2024
CLOs, at fair value	$	337,392	$	242,227	Accounts payable	$	148,054	$	133,037
Derivative and hedging assets (Note 17)	58,829		75,147		Accrued compensation and benefits	173,940		322,957
Due from related parties	42,549		35,198		Net deferred tax liability	732,222		786,141
Equity investments(A)	675,164		502,610		Derivative liabilities (Note 17)	95,339		52,610
Excess MSRs, at fair value (Note 13)	345,677		369,162		Escheat payable	187,404		187,830
Goodwill (Note 15)	133,832		133,832		MSR financing liability, at fair value	60,940		101,088
Income and fees receivable	74,658		208,672		Interest payable	199,244		260,931
Intangible assets (Note 15)	306,682		331,949		Lease liability (Note 16)	159,407		160,437
Loans receivable, at fair value(B)	8,038		31,580		Notes receivable financing(E)	376,143		371,788
Margin receivable, net(C)	220,697		414,404		Unearned income and fees	14,235		17,280
Non-Agency securities, at fair value	739,143		552,797		Other liabilities	214,458		236,672
Notes receivable, at fair value(D)	442,893		393,786			$	2,361,386	$	2,630,771
Operating lease ROU assets (Note 16)	103,646		99,224
Other receivables	172,324		178,651
Prepaid expenses	61,264		59,198
Principal and interest receivable	127,779		181,271
Property and equipment	75,802		70,495
REO	23,680		27,898
Servicer advance investments, at fair value (Note 14)	312,986		339,646
Servicing fee receivables	174,598		106,228
Warrants, at fair value	11,840		9,316
Other assets	211,354		200,124
	$	4,660,827	$	4,563,415

(A)Represents equity investments in (i) certain real estate redevelopment projects, (ii) various real estate services operating companies, (iii) funds managed by Sculptor, (iv) Credit Risk Transfer LLC (as defined in Note 19) that holds exposure in residential mortgage loan warehouse lines (measured at fair value under the FVO election), (v) Rithm Property Trust common and preferred securities, (vi) Newrez Joint Ventures (as defined in Note 20), (vii) APM and (viii) an energy fund managed by Rithm.

(B)Represents a loan made pursuant to a senior subordinated credit agreement to an entity affiliated with funds managed by an affiliate of the Company’s former external manager, FIG LLC (the “Former Manager”), an affiliate of Fortress Investment Group LLC. The loan is measured at fair value under the FVO election.

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

(D)Represents notes receivable secured by commercial properties. The notes are measured at fair value under the FVO election.

(E)During the second quarter of 2024, the Company transferred an investment in a note receivable with a fair value of $365.0 million, subject to a repo financing of $323.5 million, from a third party to a nonconsolidated joint venture for cash consideration of $48.0 million. The transaction did not meet sale accounting under ASC 860 and, as a result, was treated as a secured borrowing for accounting purposes for which the Company elected the FVO and is included in accrued expenses and other liabilities in the consolidated balance sheets. The amount presented within notes receivable financing is comprised of the repo financing and the non-recourse liability in a secured borrowing. The Company continues to reflect the transferred note in other assets in the consolidated balance sheets, at fair value.

REO — REO assets are individual properties acquired by Rithm Capital through foreclosure or deed-in-lieu of foreclosure as a result of borrower default. REO assets are measured at the lower of cost or fair value, with valuation provision recorded in other income (loss), net in the consolidated statements of operations. REO assets are managed for prompt sale and disposition.

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







Balance at December 31, 2024	$	27,898

Property received in satisfaction of loan	7,520
Sales(A)	(12,410)
Valuation reversal	672
Balance at June 30, 2025	$	23,680

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

As of June 30, 2025, Rithm Capital had residential mortgage loans and residential transition loans that were in the process of foreclosure with UPBs of $38.9 million and $11.9 million, respectively.

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


	Notes Receivable		Loans Receivable		Total







Balance at December 31, 2024	$	393,786	$	31,580	$	425,366
Fundings	43,096		—		43,096
Payment in kind	2,145		1,458		3,603
Proceeds from repayments	—		(25,000)		(25,000)
Fair Value Adjustments due to:

Other factors(A)	3,866		—		3,866
Balance at June 30, 2025	$	442,893	$	8,038	$	450,931

(A)There were no fair value adjustments due to changes in instrument-specific credit risk in the current period.

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




	June 30, 2025						December 31, 2024
Days Past Due	UPB		Carrying Value(A)		Carrying Value Over (Under) UPB		UPB		Carrying Value(A)		Carrying Value Over (Under) UPB
Current	$	540,555	$	450,931	$	(89,624)	$	518,856	$	425,366	$	(93,490)
90+	—		—		—		—		—		—
Total	$	540,555	$	450,931	$	(89,624)	$	518,856	$	425,366	$	(93,490)

(A)Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements.