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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash Flows From Operating Activities:    
Net Income $ 109,473 $ 105,897
Adjustments to reconcile net income to net cash used in operating activities:    
Amortization of premiums, discounts, and securities issuance costs, net (14,246) (20,251)
Depreciation and amortization of non-financial assets 909 849
Purchases of held-for-sale loans (3,760,110) (3,817,445)
Proceeds from sales of held-for-sale loans 3,079,877 2,930,641
Principal payments on held-for-sale loans 38,500 55,694
Net settlements of derivatives (10,570) (13,914)
Provision for loan losses 0 (7,102)
Non-cash equity award compensation expense 7,797 10,595
Market valuation adjustments (50,352) 9,238
Realized gains, net (8,809) (26,037)
Net change in:    
Accrued interest receivable and other assets (19,868) 7,983
Accrued interest payable and accrued expenses and other liabilities (1,677) 7,728
Net cash used in operating activities (629,076) (756,124)
Cash Flows From Investing Activities:    
Purchases of loans held-for-investment 0 0
Proceeds from sales of loans held-for-investment 0 219,639
Principal payments on loans held-for-investment 370,595 574,037
Purchases of real estate securities (396,721) (212,364)
Proceeds from sales of real estate securities 142,931 482,716
Principal payments on real estate securities 55,544 60,978
Purchase of mortgage servicing rights (574) (15,286)
Proceeds from sales of mortgage servicing rights 51,279 35,717
Net change in restricted cash (17,635) 3,523
Net cash provided by investing activities 205,419 1,148,960
Cash Flows From Financing Activities:    
Proceeds from borrowings on short-term debt 3,126,949 3,156,642
Repayments on short-term debt (2,968,050) (3,894,240)
Proceeds from issuance of asset-backed securities 286,898 0
Repayments on asset-backed securities issued (146,357) (208,801)
Proceeds from issuance of long-term debt 245,000 771,287
Deferred long-term debt issuance costs (7,380) 0
Repayments on long-term debt 0 (118,146)
Net settlements of derivatives (115) (119)
Net proceeds from issuance of common stock 224 220
Net payments on repurchase of common stock 0 (27,731)
Taxes paid on equity award distributions (2,536) (4,399)
Dividends paid (66,209) (66,406)
Net cash provided by (used in) financing activities 468,424 (391,693)
Net increase in cash and cash equivalents 44,767 1,143
Cash and cash equivalents at beginning of period 212,844 [1] 220,229
Cash and cash equivalents at end of period 257,611 [1] 221,372
Cash paid during the period for:    
Interest 67,339 62,053
Taxes 1,476 826
Supplemental Noncash Information:    
Real estate securities retained from loan securitizations 67,083 3,673
Retention of mortgage servicing rights from loan securitizations and sales 7,387 7,679
Transfers from loans held-for-sale to loans held-for-investment 643,876 877,744
Transfers from loans held-for-investment to loans held-for-sale 98,853 359,005
Transfers from residential loans to real estate owned $ 3,177 $ 8,479
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At September 30, 2017 and December 31, 2016, assets of consolidated VIEs totaled $995,768 and $798,317, respectively. At September 30, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $945,873 and $773,980, respectively. See Note 4 for further discussion.