Note 13. Asset-Backed Securities Issued

Through our Sequoia securitization program, we sponsor securitization transactions in which ABS backed by residential mortgage loans are issued by Sequoia entities. ABS were also issued by securitization entities in the Residential Resecuritization and the Commercial Securitization. Each securitization entity is independent of Redwood and of each other and the assets and liabilities are not owned by and are not legal obligations of Redwood. Our exposure to these entities is primarily through the financial interests we have retained, although we are exposed to certain financial risks associated with our role as a sponsor, manager, or depositor of these entities or as a result of our having sold assets directly or indirectly to these entities.

As a general matter, ABS have been issued by these securitization entities to fund the acquisition of assets from us or from third parties. The ABS issued by these entities consist of various classes of securities that pay interest on a monthly or quarterly basis. Substantially all ABS issued pay variable rates of interest, which are indexed to one-, three-, or six-month LIBOR. Some ABS issued pay fixed rates of interest or pay hybrid rates, which are fixed rates that subsequently adjust to variable rates. ABS issued also includes some interest-only classes with coupons set at a fixed rate or a fixed spread to a benchmark rate, or set at a spread to the interest rates earned on the assets less the interest rates paid on the liabilities of a securitization entity.

The carrying values of ABS issued by consolidated securitization entities at December 31, 2014 and 2013, along with other selected information, are summarized in the following table.

Asset-Backed Securities Issued


	December 31, 2014
(Dollars in Thousands)	Sequoia			Residential Resecuritization			Commercial Securitization			Total
Certificates with principal balance	$	1,427,056		$	45,044		$	83,313		$	1,555,413
Interest-only certificates		2,079			—			—			2,079
Unamortized discount		(12,373	)		—			—			(12,373	)

Total ABS Issued	$	1,416,762		$	45,044		$	83,313		$	1,545,119

Range of weighted average interest rates, by series		0.36% to 4.27%			2.16	%		5.62	%
Stated maturities		2014 - 2047			2046			2018
Number of series		24			1			1

	December 31, 2013
(Dollars in Thousands)	Sequoia			Residential Resecuritization			Commercial Securitization			Total
Certificates with principal balance	$	1,708,324		$	94,934		$	153,693		$	1,956,951
Interest-only certificates		3,400			—			—			3,400
Unamortized discount		(17,389	)		—			—			(17,389	)

Total ABS Issued	$	1,694,335		$	94,934		$	153,693		$	1,942,962

Range of weighted average interest rates, by series		0.24% to 4.23%			2.21	%		5.62	%
Stated maturities		2014 - 2047			2046			2018
Number of series		24			1			1

The actual maturity of each class of ABS issued is primarily determined by the rate of principal prepayments on the assets of the issuing entity. Each series is also subject to redemption prior to the stated maturity according to the terms of the respective governing documents of each ABS issuing entity. As a result, the actual maturity of ABS issued may occur earlier than its stated maturity. At December 31, 2014, $1.53 billion of ABS issued ($1.54 billion principal balance) had contractual maturities beyond five years and $16 million of ABS issued ($16 million principal balance) had contractual maturities of one to five years. Amortization of Sequoia, Commercial Securitization, and Residential Resecuritization deferred ABS issuance costs were $2 million, $3 million and $3 million for the years ended December 31, 2014, 2013, and 2012, respectively.

The following table summarizes the accrued interest payable on ABS issued at December 31, 2014 and 2013. Interest due on Sequoia, Residential Resecuritization, and Commercial Securitization ABS issued is payable monthly.

Accrued Interest Payable on Asset-Backed Securities Issued


(In Thousands)	December 31, 2014		December 31, 2013
Sequoia	$	976	$	1,218
Residential Resecuritization		5		11
Commercial Securitization		390		720

Total Accrued Interest Payable on ABS Issued	$	1,371	$	1,949

The following table summarizes the carrying value components of the collateral for ABS issued and outstanding at December 31, 2014 and 2013.

Collateral for Asset-Backed Securities Issued


	December 31, 2014
(In Thousands)	Sequoia		Residential Resecuritization		Commercial Securitization		Total
Residential loans	$	1,474,386	$	—	$	—	$	1,474,386
Commercial loans		—		—		194,991		194,991
Real estate securities		—		221,676		—		221,676
Restricted cash		147		43		137		327
Accrued interest receivable		2,359		477		1,511		4,347
REO		4,411		—		70		4,481

Total Collateral for ABS Issued	$	1,481,303	$	222,196	$	196,709	$	1,900,208


	December 31, 2013
(In Thousands)	Sequoia		Residential Resecuritization		Commercial Securitization		Total
Residential loans	$	1,762,167	$	—	$	—	$	1,762,167
Commercial loans		—		—		257,741		257,741
Real estate securities		—		263,204		—		263,204
Restricted cash		152		—		137		289
Accrued interest receivable		2,714		627		1,975		5,316
REO		3,661		—		—		3,661

Total Collateral for ABS Issued	$	1,768,694	$	263,831	$	259,853	$	2,292,378