MORTGAGE LOANS RECEIVABLE

6 Months Ended

Jun. 30, 2022

Rithm Capital completed the acquisition of Genesis in December 2021. 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.

The following table summarizes Mortgage Loans Receivable outstanding by loan purpose as of June 30, 2022:


	Carrying Value(A)		% of Portfolio		Loan Count	% of Portfolio		Weighted Average Yield		Weighted Average Original Life (Months)	Weighted Average Committed Loan Balance to Value(B)
Construction	$	755,077	43.0	%	568	39.0	%	8.1	%	14.3	76.2% / 65.5%
Bridge	722,282		41.1	%	455	31.3	%	7.6	%	16.6	77.1%
Renovation	278,720		15.9	%	433	29.7	%	7.8	%	12.9	77.9% / 66.7%
	$	1,756,079	100.0	%	1,456	100.0	%	7.8	%	15.0	N/A

(A)Represents fair value.

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

The following table summarizes the activity for Mortgage Loans Receivables:


Balance at December 31, 2021	$	1,515,762
Initial loan advances	828,032
Construction holdbacks and draws	240,031
Paydowns and payoffs	(783,878)
Purchased loans premium amortization	(43,868)
Fair value adjustments due to:
Changes in instrument-specific credit risk	—
Other factors	—
Balance at June 30, 2022	$	1,756,079

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 unpaid principal balance and the aggregate fair value of Mortgage Loans Receivable:


	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
Current	$	1,756,079	$	1,756,079	$	—	$	1,473,894	$	1,515,762	$	41,868
90+	—		—		—		—		—		—

The following table summarizes the geographic distribution of the underlying Mortgage Loans Receivable as of June 30, 2022:


State Concentration	Percentage of Total Loan Commitment
California	57.2	%
Washington	9.5	%
New York	5.2	%
Other U.S.	28.1	%
	100.0	%

See Note 18 regarding the financing of Mortgage Loans Receivable.