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Residential Loans | 12 Months Ended
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Dec. 31, 2015
Residential Loans |
Mortgage Loans on Real Estate [Line Items] |
Loans | Residential Loans We acquire residential loans from third-party originators. The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia entities at December 31, 2015 and December 31, 2014. Table 6.1 – Classifications and Carrying Values of the Residential Loans
December 31, 2015 |  |  |  |  |  |
(In Thousands) |  | Redwood |  | Sequoia (1) |  | Total
Held-for-sale |  |  |  |  |  |
Fair value - conforming |  | $ | 129,819 |  |  | $ | — |  |  | $ | 129,819 |
Fair value - jumbo |  | 984,486 |  |  | — |  |  | 984,486 |
Lower of cost or fair value - jumbo |  | 1,433 |  |  | — |  |  | 1,433 |
Total held-for-sale |  | 1,115,738 |  |  | — |  |  | 1,115,738 |
Held-for-investment |  |  |  |  |  |  |
Fair value - jumbo |  | 1,791,195 |  |  | 1,021,870 |  |  | 2,813,065 |
Total Residential Loans |  | $ | 2,906,933 |  |  | $ | 1,021,870 |  |  | $ | 3,928,803 |
December 31, 2014 |  |  |  |  |  |
(In Thousands) |  | Redwood |  | Sequoia (1) |  | Total
Held-for-sale |  |  |  |  |  |
Fair value - conforming |  | $ | 244,714 |  |  | $ | — |  |  | $ | 244,714 |
Fair value - jumbo |  | 1,096,317 |  |  | — |  |  | 1,096,317 |
Lower of cost or fair value - jumbo |  | 1,488 |  |  | — |  |  | 1,488 |
Total held-for-sale |  | 1,342,519 |  |  | — |  |  | 1,342,519 |
Held-for-investment |  |  |  |  |  |
Fair value - jumbo |  | 581,668 |  |  | — |  |  | 581,668 |
At amortized cost |  | — |  |  | 1,474,386 |  |  | 1,474,386 |
Total Residential Loans |  | $ | 1,924,187 |  |  | $ | 1,474,386 |  |  | $ | 3,398,573 |
(1) | Upon adoption of ASU 2014-13 on January 1, 2015, we began to record loans held-for-investment at consolidated Sequoia entities at fair value. See Note 3 for further discussion.
At December 31, 2015, we owned mortgage servicing rights associated with $2.23 billion (principal balance) of consolidated residential loans purchased from third-party originators. The value of these MSRs is included in the carrying value of the associated loans on our balance sheet. We contract with a licensed sub-servicer that performs servicing functions for these loans. Residential Loans Held-for-Sale At Fair Value At December 31, 2015, we owned 1,763 loans held-for-sale at fair value with an unpaid principal balance of $1.09 billion and an aggregate fair value of $1.11 billion, compared to 2,273 loans with an unpaid principal balance of $1.30 billion and an aggregate fair value of $1.34 billion at December 31, 2014. At December 31, 2015, two of these loans were greater than 90 days delinquent and one of these loans was in foreclosure. At December 31, 2014, none of these loans were greater than 90 days delinquent and one of these loans was in foreclosure. During the years ended December 31, 2015 and 2014, we purchased $10.21 billion and $8.81 billion (principal balance) of loans, respectively, for which we elected the fair value option. During the years ended December 31, 2015 and 2014, we recorded $4 million and $51 million of positive valuation adjustments, respectively, on residential loans held-for-sale at fair value through mortgage banking and investment activities, net, a component of our consolidated statements of income. During the years ended December 31, 2015 and 2014, we sold $9.04 billion and $7.90 billion (principal balance) of loans held-for-sale, respectively. At December 31, 2015, loans held-for-sale with a market value of $1.07 billion were pledged as collateral under short-term borrowing agreements. At Lower of Cost or Fair Value At both December 31, 2015 and December 31, 2014, we held nine residential loans at the lower of cost or fair value with $2 million in outstanding principal balance. At December 31, 2015, two of these loans were greater than 90 days delinquent and one of these loans was in foreclosure. At December 31, 2014, none of these loans were greater than 90 days delinquent and one of these loans were in foreclosure. Residential Loans Held-for-Investment at Fair Value At Redwood At December 31, 2015, we owned 2,398 held-for-investment loans at Redwood with an unpaid principal balance of $1.76 billion and an aggregate fair value of $1.79 billion, compared to 804 loans with an unpaid principal balance of $566 million and an aggregate fair value of $580 million at December 31, 2014. At December 31, 2015, none of these loans were greater than 90 days delinquent and none of these loans were in foreclosure. At December 31, 2014, none of these loans were greater than 90 days delinquent and one of the loans was in foreclosure. During the years ended December 31, 2015 and 2014, we transferred loans with a fair value of $1.50 billion and $583 million, respectively, from held-for-sale to held-for-investment. During the year ended December 31, 2015, we transferred loans with a fair value of $143 million from held-for-investments to held-for-sale. We did not transfer loans from held-for-investments to held-for-sale during the year ended December 31, 2014. During the years ended December 31, 2015 and 2014, we recorded negative $6 million and negative $1 million of valuation adjustments, respectively, on residential loans held-for-investment at fair value through mortgage banking and investment activities, net, a component of our consolidated statements of income. At December 31, 2015, $1.68 billion of these loans were pledged as collateral under a borrowing agreement with the FHLBC. The outstanding loans held-for-investment at Redwood at December 31, 2015 were prime-quality, first lien loans, of which 88% were originated in 2014 and 2015, 6% were originated in 2013, and 6% were originated in 2012 and prior years. The weighted average FICO score of borrowers backing these loans was 772 (at origination) and the weighted average loan-to-value ("LTV") ratio of these loans was 65% (at origination). At December 31, 2015, these loans were comprised of 97% fixed-rate loans with a weighted average coupon of 4.07%, and the remainder were hybrid or ARM loans with a weighted average coupon of 3.55%. At Consolidated Sequoia Entities On January 1, 2015, we eliminated $13 million of unamortized premium, net and $21 million of allowance for loan losses related to loans at our consolidated Sequoia entities as part of our initial adoption of ASU 2014-13 and recorded a valuation adjustment on these loans to reduce the loan carrying values to their estimated fair values. See Note 3 for further discussion. The following table details the carrying value for residential loans held-for-investment at consolidated Sequoia entities at December 31, 2015 and December 31, 2014. Table 6.2 – Carrying Value for Held-for-Investment Residential Loans at Sequoia Entities
(In Thousands) |  | December 31, 2015 |  | December 31, 2014
Principal balance |  | $ | 1,122,415 |  |  | $ | 1,483,213 |
Unamortized premium, net |  | — |  |  | 12,511 |
Allowance for loan losses |  | — |  |  | (21,338 | )
Valuation adjustment |  | (100,545 | ) |  | — |
Carrying Value |  | $ | 1,021,870 |  |  | $ | 1,474,386 |
At December 31, 2015, we owned 4,545 held-for-investment loans at consolidated Sequoia entities. At origination, the weighted average FICO score of borrowers backing these loans was 729, the weighted average LTV ratio of these loans was 66% and the loans were nearly all first lien and prime-quality. At December 31, 2015 and December 31, 2014, the unpaid principal balance of loans at consolidated Sequoia entities delinquent greater than 90 days was $59 million and $70 million, respectively, and the unpaid principal balance of loans in foreclosure was $32 million and $39 million, respectively. During the years ended December 31, 2015 and 2014, we recorded positive $7 million and zero, respectively, of net valuation adjustments on these loans through mortgage banking and investment activities, net on our consolidated statements of income. Residential Loan Characteristics The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2015 and 2014. Table 6.3 – Geographic Concentration of the Residential Loans
|  | December 31, 2015 |  | December 31, 2014
Geographic Concentration (by Principal) |  | Held-for-Sale |  | Held-for- Investment at Sequoia |  | Held-for- Investment at FVO |  | Held-for-Sale |  | Held-for- Investment at Sequoia |  | Held-for- Investment at FVO
California |  | 41 | % |  | 18 | % |  | 39 | % |  | 39 | % |  | 20 | % |  | 24 | %
Texas |  | 9 | % |  | 6 | % |  | 11 | % |  | 9 | % |  | 5 | % |  | 14 | %
Washington |  | 6 | % |  | 2 | % |  | 3 | % |  | 5 | % |  | 2 | % |  | 4 | %
Colorado |  | 5 | % |  | 3 | % |  | 5 | % |  | — | % |  | — | % |  | 8 | %
Florida |  | 4 | % |  | 14 | % |  | 4 | % |  | 4 | % |  | 13 | % |  | 6 | %
Virginia |  | 3 | % |  | 3 | % |  | 4 | % |  | 5 | % |  | 3 | % |  | 7 | %
Georgia |  | 3 | % |  | 5 | % |  | 1 | % |  | 2 | % |  | 5 | % |  | — | %
Massachusetts |  | 2 | % |  | 2 | % |  | 4 | % |  | 6 | % |  | 2 | % |  | 5 | %
New York |  | 1 | % |  | 8 | % |  | 5 | % |  | 2 | % |  | 8 | % |  | 3 | %
Other states (none greater than 5%) |  | 26 | % |  | 39 | % |  | 24 | % |  | 28 | % |  | 42 | % |  | 29 | %
Total |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | %
T he following table displays the loan product type and accompanying loan characteristics of residential loans recorded on our consolidated balance sheets at December 31, 2015 and 2014. Table 6.4 – Classifications and Carrying Values of Residential Loans
December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(In Thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan Balance |  |  | Number of Loans |  | Interest Rate(1) |  | Maturity Date |  | Total Principal |  | 30-89 Days DQ |  | 90+ Days DQ
Held-for-Investment at Redwood (2): |  |  |  |  |  |  |  |  |  |  |  |  |  |
ARM loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | 251 |  | to | $500 |  |  | 2 |  |  | 3.63 | % | to | 3.75% |  | 2044-07 | - | 2044-07 |  | $ | 563 |  |  | $ | — |  |  | $ | — |
| $ | 501 |  | to | $750 |  |  | 2 |  |  | 3.50 | % | to | 3.50% |  | 2045-09 | - | 2045-10 |  | 1,671 |  |  | — |  |  | — |
| $ | 751 |  | to | $1,000 |  |  | 1 |  |  | 3.63 | % | to | 3.63% |  | 2044-08 | - | 2044-08 |  | 1,267 |  |  | — |  |  | — |
|  |  |  |  |  | 5 |  |  |  |  |  |  |  |  |  |  | 3,501 |  |  | — |  |  | — |
Hybrid ARM loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | 251 |  | to | $500 |  |  | 7 |  |  | 2.88 | % | to | 3.88% |  | 2044-01 | - | 2044-09 |  | 2,963 |  |  | — |  |  | — |
| $ | 501 |  | to | $750 |  |  | 28 |  |  | 2.63 | % | to | 4.9% |  | 2040-09 | - | 2044-10 |  | 17,514 |  |  | — |  |  | — |
| $ | 751 |  | to | $1,000 |  |  | 15 |  |  | 2.75 | % | to | 5.05% |  | 2039-05 | - | 2044-11 |  | 12,994 |  |  | — |  |  | — |
|  | over | $1,000 |  |  | 6 |  |  | 2.88 | % | to | 5.2% |  | 2039-04 | - | 2044-12 |  | 8,797 |  |  | — |  |  | — |
|  |  |  |  |  | 56 |  |  |  |  |  |  |  |  |  |  | 42,268 |  |  | — |  |  | — |
Fixed loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | — |  | to | $250 |  |  | 29 |  |  | 3.64 | % | to | 5.38% |  | 2039-04 | - | 2045-10 |  | 5,295 |  |  | 242 |  |  | — |
| $ | 251 |  | to | $500 |  |  | 484 |  |  | 3.13 | % | to | 5.13% |  | 2029-07 | - | 2045-12 |  | 212,732 |  |  | 913 |  |  | — |
| $ | 501 |  | to | $750 |  |  | 959 |  |  | 2.94 | % | to | 5.25% |  | 2026-11 | - | 2045-12 |  | 595,863 |  |  | 3,213 |  |  | — |
| $ | 751 |  | to | $1,000 |  |  | 552 |  |  | 2.90 | % | to | 5.00% |  | 2024-01 | - | 2045-12 |  | 480,557 |  |  | 989 |  |  | — |
|  |  | over | $1,000 |  |  | 313 |  |  | 3.14 | % | to | 5.00% |  | 2027-04 | - | 2045-12 |  | 418,774 |  |  | — |  |  | — |
|  |  |  |  |  | 2,337 |  |  |  |  |  |  |  |  |  |  | 1,713,221 |  |  | 5,357 |  |  | — |
Total HFI at Redwood: |  | 2,398 |  |  |  |  |  |  |  |  |  |  | $ | 1,758,990 |  |  | $ | 5,357 |  |  | $ | — |
Held-for-Investment at Sequoia (1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
ARM loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | — |  | to | $250 |  |  | 3,133 |  |  | 0.38 | % | to | 5.16% |  | 2013-02 | - | 2035-11 |  | $ | 355,415 |  |  | $ | 10,661 |  |  | $ | 13,078 |
| $ | 251 |  | to | $500 |  |  | 858 |  |  | — | % | to | 5.63% |  | 2013-12 | - | 2036-05 |  | 296,425 |  |  | 9,620 |  |  | 15,345 |
| $ | 501 |  | to | $750 |  |  | 269 |  |  | 0.63 | % | to | 4.66% |  | 2014-05 | - | 2035-09 |  | 161,273 |  |  | 4,578 |  |  | 7,209 |
| $ | 751 |  | to | $1,000 |  |  | 135 |  |  | 0.38 | % | to | 2.38% |  | 2019-02 | - | 2035-07 |  | 118,983 |  |  | 3,586 |  |  | 8,473 |
|  |  | over | $1,000 |  |  | 109 |  |  | — | % | to | 2.63% |  | 2022-01 | - | 2036-05 |  | 169,492 |  |  | 1,341 |  |  | 14,718 |
|  |  |  |  |  | 4,504 |  |  |  |  |  |  |  |  |  |  | 1,101,588 |  |  | 29,786 |  |  | 58,823 |
Hybrid ARM loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | — |  | to | $250 |  |  | 3 |  |  | 2.75 | % | to | 2.88% |  | 2033-09 | - | 2034-06 |  | 317 |  |  | — |  |  | — |
| $ | 251 |  | to | $500 |  |  | 20 |  |  | 2.63 | % | to | 2.88% |  | 2033-07 | - | 2034-12 |  | 7,523 |  |  | — |  |  | — |
| $ | 501 |  | to | $750 |  |  | 15 |  |  | 2.63 | % | to | 2.88% |  | 2033-08 | - | 2034-12 |  | 9,874 |  |  | 542 |  |  | — |
| $ | 751 |  | to | $1,000 |  |  | 2 |  |  | 2.75 | % | to | 2.75% |  | 2033-07 | - | 2033-08 |  | 1,547 |  |  | — |  |  | — |
|  |  | over | $1,000 |  |  | 1 |  |  | 2.75 | % | to | 2.75% |  | 2033-09 | - | 2033-09 |  | 1,566 |  |  | — |  |  | — |
|  |  |  |  |  | 41 |  |  |  |  |  |  |  |  |  |  | 20,827 |  |  | 542 |  |  | — |
Total HFI at Sequoia: |  | 4,545 |  |  |  |  |  |  |  |  |  |  | $ | 1,122,415 |  |  | $ | 30,328 |  |  | $ | 58,823 |
Held-for-Sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
ARM loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | 64 |  | to | $1,298 |  |  | 14 |  |  | 1.50 | % | to | 4.00% |  | 2032-11 | - | 2045-12 |  | $ | 5,258 |  |  | $ | — |  |  | $ | 415 |
Hybrid ARM loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | 164 |  | to | $1,989 |  |  | 356 |  |  | 2.50 | % | to | 4.25% |  | 2037-06 | - | 2046-01 |  | 276,457 |  |  | 2,249 |  |  | — |
Fixed loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | 30 |  | to | $2,332 |  |  | 1,402 |  |  | 2.75 | % | to | 5.25% |  | 2025-09 | - | 2046-01 |  | 809,803 |  |  | 2,097 |  |  | 1,437 |
Total Held-for-Sale |  | 1,772 |  |  |  |  |  |  |  |  |  |  | $ | 1,091,518 |  |  | $ | 4,346 |  |  | $ | 1,852 |
December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(In Thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan Balance |  |  | Number of Loans |  | Interest Rate(1) |  | Maturity Date |  | Total Principal |  | 30-89 Days DQ |  | 90+ Days DQ
Held-for-Investment at Redwood (2): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hybrid ARM loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | 251 |  | to | $500 |  |  | 29 |  |  | 2.38 | % | to | 3.75% |  | 2044-01 | - | 2044-10 |  | $ | 12,487 |  |  | $ | — |  |  | $ | — |
| $ | 501 |  | to | $750 |  |  | 80 |  |  | 2.38 | % | to | 4.25% |  | 2044-02 | - | 2044-11 |  | 49,085 |  |  | 619 |  |  | — |
| $ | 751 |  | to | $1,000 |  |  | 51 |  |  | 2.38 | % | to | 3.75% |  | 2043-05 | - | 2044-11 |  | 43,835 |  |  | — |  |  | — |
|  |  | over | $1,000 |  |  | 14 |  |  | 2.38 | % | to | 3.25% |  | 2044-03 | - | 2044-11 |  | 17,720 |  |  | — |  |  | — |
|  |  |  |  |  | 174 |  |  |  |  |  |  |  |  |  |  | 123,127 |  |  | 619 |  |  | — |
Fixed loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | — |  | to | $250 |  |  | 1 |  |  | 4.13 | % | to | 4.13% |  | 2044-07 | - | 2044-07 |  | 75 |  |  | — |  |  | — |
| $ | 251 |  | to | $500 |  |  | 158 |  |  | 3.13 | % | to | 4.75% |  | 2029-01 | - | 2044-12 |  | 72,931 |  |  | 894 |  |  | — |
| $ | 501 |  | to | $750 |  |  | 272 |  |  | 3.13 | % | to | 5.00% |  | 2029-04 | - | 2044-12 |  | 165,574 |  |  | 624 |  |  | — |
| $ | 751 |  | to | $1,000 |  |  | 136 |  |  | 3.13 | % | to | 4.88% |  | 2029-01 | - | 2044-12 |  | 116,892 |  |  | — |  |  | — |
|  |  | over | $1,000 |  |  | 63 |  |  | 3.25 | % | to | 5.00% |  | 2024-01 | - | 2044-12 |  | 87,773 |  |  | — |  |  | — |
|  |  |  |  |  | 630 |  |  |  |  |  |  |  |  |  |  | 443,245 |  |  | 1,518 |  |  | — |
Total HFI at Redwood: |  | 804 |  |  |  |  |  |  |  |  |  |  | $ | 566,372 |  |  | $ | 2,137 |  |  | $ | — |
Held-for-Investment at Sequoia (1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
ARM loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | — |  | to | $250 |  |  | 3,400 |  |  | 0.25 | % | to | 5.50% |  | 2012-12 | - | 2035-11 |  | $ | 400,779 |  |  | $ | 14,604 |  |  | $ | 16,332 |
| $ | 251 |  | to | $500 |  |  | 1,041 |  |  | 0.00 | % | to | 5.63% |  | 2013-12 | - | 2036-05 |  | 360,848 |  |  | 14,536 |  |  | 13,955 |
| $ | 501 |  | to | $750 |  |  | 328 |  |  | 0.50 | % | to | 4.66% |  | 2013-08 | - | 2035-09 |  | 198,661 |  |  | 7,218 |  |  | 12,862 |
| $ | 751 |  | to | $1,000 |  |  | 162 |  |  | 0.25 | % | to | 2.38% |  | 2019-02 | - | 2035-07 |  | 143,687 |  |  | 2,396 |  |  | 9,262 |
|  |  | over | $1,000 |  |  | 132 |  |  | 0.00 | % | to | 2.63% |  | 2022-01 | - | 2036-05 |  | 207,539 |  |  | 2,494 |  |  | 16,106 |
|  |  |  |  |  | 5,063 |  |  |  |  |  |  |  |  |  |  | 1,311,514 |  |  | 41,248 |  |  | 68,517 |
Hybrid ARM loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | — |  | to | $250 |  |  | 3 |  |  | 2.63 | % | to | 2.63% |  | 2033-09 | - | 2034-03 |  | 364 |  |  | — |  |  | — |
| $ | 251 |  | to | $500 |  |  | 26 |  |  | 2.50 | % | to | 5.15% |  | 2033-07 | - | 2039-12 |  | 10,056 |  |  | — |  |  | 319 |
| $ | 501 |  | to | $750 |  |  | 23 |  |  | 2.50 | % | to | 4.65% |  | 2033-07 | - | 2040-09 |  | 14,711 |  |  | — |  |  | — |
| $ | 751 |  | to | $1,000 |  |  | 11 |  |  | 2.50 | % | to | 4.80% |  | 2033-07 | - | 2040-12 |  | 9,393 |  |  | — |  |  | — |
|  |  | over | $1,000 |  |  | 7 |  |  | 2.50 | % | to | 4.95% |  | 2033-09 | - | 2040-11 |  | 11,786 |  |  | — |  |  | — |
|  |  |  |  |  | 70 |  |  |  |  |  |  |  |  |  |  | 46,310 |  |  | — |  |  | 319 |
Fixed loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | — |  | to | $250 |  |  | 7 |  |  | 3.70 | % | to | 4.90% |  | 2039-04 | - | 2041-02 |  | 1,040 |  |  | — |  |  | — |
| $ | 251 |  | to | $500 |  |  | 42 |  |  | 3.45 | % | to | 5.13% |  | 2039-02 | - | 2041-07 |  | 17,574 |  |  | — |  |  | — |
| $ | 501 |  | to | $750 |  |  | 71 |  |  | 3.65 | % | to | 5.25% |  | 2039-02 | - | 2041-08 |  | 42,609 |  |  | — |  |  | — |
| $ | 751 |  | to | $1,000 |  |  | 38 |  |  | 4.20 | % | to | 5.25% |  | 2040-08 | - | 2041-08 |  | 32,966 |  |  | — |  |  | 726 |
|  |  | over | $1,000 |  |  | 24 |  |  | 4.30 | % | to | 5.38% |  | 2040-09 | - | 2041-06 |  | 31,200 |  |  | — |  |  | — |
|  |  |  |  |  | 182 |  |  |  |  |  |  |  |  |  |  | 125,389 |  |  | — |  |  | 726 |
Total HFI at Sequoia: |  | 5,315 |  |  |  |  |  |  |  |  |  |  | $ | 1,483,213 |  |  | $ | 41,248 |  |  | $ | 69,562 |
Held-for-Sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
ARM loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | 66 |  | to | $359 |  |  | 8 |  |  | 1.88 | % | to | 2.25% |  | 2032-11 | - | 2033-10 |  | $ | 1,286 |  |  | $ | 170 |  |  | $ | 471 |
Hybrid ARM loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | 252 |  | to | $1,985 |  |  | 109 |  |  | 2.63 | % | to | 4.00% |  | 2037-06 | - | 2045-01 |  | 84,271 |  |  | — |  |  | — |
Fixed loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | 75 |  | to | $2,496 |  |  | 2,165 |  |  | 2.88 | % | to | 5.00% |  | 2024-12 | - | 2045-01 |  | 1,219,936 |  |  | 1,178 |  |  | — |
Total Held-for-Sale |  | 2,282 |  |  |  |  |  |  |  |  |  |  | $ | 1,305,493 |  |  | $ | 1,348 |  |  | $ | 471 |
Notes to Table 6.4
(1) | Upon adoption of ASU 2014-13 on January 1, 2015, we began to record loans held-for-investment at consolidated Sequoia entities at fair value. See Note 3 for further discussion.
(2) | Rate is net of servicing fee for consolidated loans for which we do not own the MSR. For borrowers whose current rate is less than the applicable servicing fee, the rate shown in the table above is zero.
Allowance for Loan Losses on Residential Loans Upon adoption of ASU 2014-13 on January 1, 2015, we began to record loans held-for-investment at consolidated Sequoia entities at fair value. See Note 3 for further discussion. Prior to the adoption of ASU 2014-13, we established and maintained an allowance for loan losses for residential loans held-for-investment. The allowance included a component for pools of residential loans owned at Sequoia securitization entities that we collectively evaluated for impairment, and a component for loans individually evaluated for impairment that included restructured residential loans at Sequoia entities were determined to be troubled debt restructurings. Activity in the Allowance for Loan Losses on Residential Loans The following table summarizes the activity in the allowance for loan losses for the years ended December 31, 2015, 2014, and 2013. Table 6.5 – Allowance for Loan Losses
| Years Ended December 31,
(In Thousands) | 2015 |  | 2014 |  | 2013
Balance at beginning of period | $ | 21,338 |  |  | $ | 25,427 |  |  | $ | 28,504 |
Charge-offs, net | — |  |  | (4,966 | ) |  | (4,525 | )
Provision for loan losses | — |  |  | 877 |  |  | 1,448 |
Other adjustments (1) | (21,338 | ) |  | — |  |  | — |
Balance at End of Period | $ | — |  |  | $ | 21,338 |  |  | $ | 25,427 |
(1) | Upon adoption of ASU 2014-13 on January 1, 2015, we began to record loans held-for-investment at consolidated Sequoia entities at fair value. See Note 3 for further discussion.

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