Rithm Capital Corp. (RITM) has disclosed a new risk, in the Debt & Financing category.
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Rithm Capital Corp.’s consumer loan portfolio, valued at $665.6 million as of December 31, 2024, poses a significant risk due to its higher default and delinquency rates compared to commercial loans. Despite offering higher yields, these loans are susceptible to borrower financial instability and adverse personal circumstances, which can lead to increased losses and costs. The risk is further compounded by federal and state laws that may restrict recovery amounts in cases of bankruptcy or insolvency. As a result, Rithm Capital may face financial challenges if delinquency rates rise, impacting their overall financial performance.
The average RITM stock price target is $13.25, implying 10.60% upside potential.
To learn more about Rithm Capital Corp.’s risk factors, click here.
