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RESIDENTIAL MORTGAGE LOANS
 6 Months Ended
Jun. 30, 2026
Residential Mortgage Loans [Abstract]  
RESIDENTIAL MORTGAGE LOANS RESIDENTIAL MORTGAGE LOANS
The activity in and the balances of the Company’s residential mortgage loan portfolio are presented in the table below:
Three Months Ended June 30,
20262025
Residential Mortgage Loans HFI, NetResidential Mortgage Loans Held-for-Sale, NetResidential Mortgage Loans HFI, NetResidential Mortgage Loans Held-for-Sale, Net
Beginning carrying value$356,137 $28,450 $386,997 $27,469 
Accretion recognized4,172 — 4,562 — 
Payments received on loans, net(12,045)(701)(12,618)(745)
Unrealized gain (loss) on residential mortgage loans held-for-sale, net— (230)— 2,519 
Reclassifications to REO(117)(20)(46)— 
Sale of residential mortgage loans— (11,784)— (1,658)
Other— 357 (1)3 
Ending Carrying Value$348,147 $16,072 $378,894 $27,588 
Six Months Ended June 30,
20262025
Residential Mortgage Loans HFI, NetResidential Mortgage Loans Held-for-Sale, NetResidential Mortgage Loans HFI, NetResidential Mortgage Loans Held-for-Sale, Net
Beginning carrying value$362,829 $29,419 $396,052 $27,788 
Accretion recognized8,487 — 9,454 — 
Payments received on loans, net(22,674)(1,422)(26,320)(1,838)
Unrealized gain (loss) on residential mortgage loans held-for-sale, net— (326)— 3,489 
Reclassifications to REO(495)(335)(92)(196)
Sale of residential mortgage loans— (11,783)— (1,658)
Other— 519 (200)3 
Ending Carrying Value$348,147 $16,072 $378,894 $27,588 

Residential mortgage loans, held at the Operating Partnership, are classified as held-for-sale (“HFS”) and are measured at the lower of amortized cost or fair value on an aggregated basis for assets with similar risk characteristics. Loans held at Rithm Property Trust II REIT are classified as HFI and are subject to Accounting Standards Codification 326, Financial Instruments - Credit Losses (“CECL”). The Company applies a legal entity-based approach in evaluating its residential mortgage loans HFI, based on the relatively homogeneous characteristics of the loans within each entity. Accordingly, the Company utilizes the following five pools:

1.Ajax Mortgage Trust 2019-D (“2019-D”);
2.Ajax Mortgage Trust 2019-F (“2019-F”);
3.Ajax Mortgage Trust 2020-B (“2020-B”);
4.Ajax Mortgage Trust 2021-A (“2021-A”); and
5.18-1 LLC.

The following table presents information regarding the year of origination of the Company’s residential mortgage loan portfolio by basis:
June 30, 2026
20262025202420232022PriorTotal
2019-D$— $— $— $— $— $82,654 $82,654 
2019-F— — — — — 77,138 77,138 
2020-B— — — — — 82,513 82,513 
2021-A— — — — — 104,636 104,636 
18-1 LLC— — — — — 1,206 1,206 
Residential Mortgage Loans HFI, Net$— $— $— $— $— $348,147 $348,147 
Residential Mortgage Loans HFS, Net$— $— $— $— $250 $15,822 $16,072 

December 31, 2025
20252024202320222021PriorTotal
2019-D$— $— $— $— $— $85,105 $85,105 
2019-F— — — — — 81,025 81,025 
2020-B— — — — — 86,096 86,096 
2021-A— — — — — 109,382 109,382 
18-1 LLC— — — — — 1,221 1,221 
Residential Mortgage Loans HFI, Net$— $— $— $— $— $362,829 $362,829 
Residential Mortgage Loans HFS, Net$— $— $— $600 $370 $28,449 $29,419 

The Company performs an analysis of its expectation of the amount of undiscounted cash flows expected to be collected from its residential mortgage loan pools at the end of each reporting period. Loss estimates are determined based on the net present value of the difference between the contractual cash flows and the expected cash flows over the expected lives of the loans. Contractual cash flows are calculated based on the stated terms of the loans. Projected cash flows are determined by factoring prepayment and expected losses based on delinquency status, the value of the underlying collateral, borrower age, weighted average coupon and length of a positive pay history.

Under CECL, the Company adjusts its allowance for expected credit losses when there are changes in its expectation of future cash flows as compared to the amounts expected to be contractually received. An increase to the allowance for expected credit losses will occur when there is a reduction in the Company’s expected future cash flows as compared to its contractual amounts due. Reduction to the allowance, or recovery, may occur if there is an increase in expected future cash flows that were previously subject to an allowance for expected credit loss.

During the three and six months ended June 30, 2026 and 2025, the Company had no activity related to the allowance for expected credit losses on residential mortgage loans HFI, net, and no allowance was recorded as of June 30, 2026 and December 31, 2025.
The following tables set forth the carrying value of the Company’s residential mortgage loans by delinquency status as of June 30, 2026 and December 31, 2025. Each column indicates the carrying value of loans which are past due on such mortgage payment for the applicable number of days presented or for which the Company has initiated foreclosure proceedings.
June 30, 2026
Current306090ForeclosureTotal
2019-D$75,030 $3,831 $476 $1,639 $1,678 $82,654 
2019-F62,764 7,332 5,068 668 1,306 77,138 
2020-B63,901 8,581 3,193 2,757 4,081 82,513 
2021-A90,744 7,607 2,562 1,435 2,288 104,636 
18-1 LLC1,173 33 — — — 1,206 
Residential Mortgage Loans HFI, Net$293,612 $27,384 $11,299 $6,499 $9,353 $348,147 
Residential Mortgage Loans HFS, Net$6,970 $2,448 $1,222 $1,273 $4,159 $16,072 

December 31, 2025
Current306090ForeclosureTotal
2019-D$77,410 $3,666 $— $2,518 $1,511 $85,105 
2019-F65,283 9,049 — 5,593 1,100 81,025 
2020-B66,186 8,995 57 5,723 5,135 86,096 
2021-A96,885 5,955 389 3,883 2,270 109,382 
18-1 LLC1,187 34 — — — 1,221 
Residential Mortgage Loans HFI, Net$306,951 $27,699 $446 $17,717 $10,016 $362,829 
Residential Mortgage Loans HFS, Net$13,805 $5,084 $10 $3,861 $6,659 $29,419 

The following tables summarizes the geographic distribution of the Company’s residential mortgage loans for the top 10 states as of June 30, 2026 and December 31, 2025:
June 30, 2026
State ConcentrationUnpaid Principal Balance (“UPB”)% UPB
California$112,186 29.1 %
Florida44,487 11.5 %
New York32,561 8.5 %
New Jersey23,454 6.1 %
Maryland20,882 5.4 %
Virginia14,269 3.7 %
Illinois14,180 3.7 %
Georgia13,358 3.5 %
Texas10,984 2.9 %
North Carolina10,357 2.7 %
Other88,538 22.9 %
Total Residential Mortgage Loans$385,256 100.0 %
December 31, 2025
State ConcentrationUPB% UPB
California$117,380 28.2 %
Florida51,038 12.3 %
New York38,119 9.2 %
New Jersey25,109 6.0 %
Maryland22,476 5.4 %
Virginia15,520 3.7 %
Illinois15,344 3.7 %
Georgia14,098 3.4 %
Texas11,986 2.9 %
North Carolina10,745 2.6 %
Other93,740 22.6 %
Total Residential Mortgage Loans$415,555 100.0 %