CONSUMER LOANS

6 Months Ended

Jun. 30, 2022

Investments In Consumer Loans Equity Method Investees [Abstract]

CONSUMER LOANS

CONSUMER LOANS

Rithm Capital, through limited liability companies (together, the “Consumer Loan Companies”), has a co-investment in a portfolio of consumer loans. The portfolio includes personal unsecured loans and personal homeowner loans. OneMain is the servicer of the loans and provides all servicing and advancing functions for the portfolio. As of June 30, 2022, Rithm Capital owns 53.5% of the limited liability company interests in, and consolidates, the Consumer Loan Companies.

Rithm Capital also purchased certain newly originated consumer loans from a third party (“Consumer Loan Seller”). These loans are not held in the Consumer Loan Companies and have been designated as performing consumer loans, held-for-investment and are grouped and presented as part of Residential Loans and Variable Interest Entity Consumer Loans Held-for-Investment, at Fair Value on the Consolidated Balance Sheets.

The following table summarizes characteristics of the consumer loan portfolio:

	Unpaid Principal Balance		Carrying Value		Weighted Average Coupon		Weighted Average Expected Life (Years)(A)
June 30, 2022
Total consumer loans	$	380,603	$	423,735	17.5	%	3.2
December 31, 2021
Total consumer loans	$	449,875	$	507,291	17.5	%	3.2

(A)Represents the weighted average expected timing of the receipt of expected cash flows for this investment.

See Note 18 regarding the financing of consumer loans.

The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate fair value of consumer loans:

	June 30, 2022			December 31, 2021
Days Past Due	Unpaid Principal Balance	Fair Value	Fair Value Over (Under) Unpaid Principal Balance	Unpaid Principal Balance	Fair Value	Fair Value Over (Under) Unpaid Principal Balance
90+	6,734	7,370	636	7,394	8,232	838

The following table summarizes activities related to the carrying value of consumer loans:

Balance at December 31, 2021	$	507,291
Additional fundings(A)	14,350
Proceeds from repayments	(84,637)
Accretion of loan discount and premium amortization, net	7,695
Fair value adjustment due to:
Changes in instrument-specific credit risk	4,126
Other factors	(25,090)
Balance at June 30, 2022	$	423,735

(A)Represents draws on consumer loans with revolving privileges.