Residential Loans (Tables) - Residential loans

12 Months Ended

Dec. 31, 2018

Accounts, Notes, Loans and Financing Receivable [Line Items]

Summary of Classifications and Carrying Value of Loans

The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at December 31, 2018 and December 31, 2017.

Table 6.1 – Classifications and Carrying Values of Residential Loans



December 31, 2018			Legacy		Sequoia		Freddie Mac
(In Thousands)	Redwood		Sequoia		Choice		SLST		Total
Held-for-sale
At fair value	$	1,048,690	$	—	$	—	$	—	$	1,048,690
At lower of cost or fair value	111		—		—		—		111
Total held-for-sale	1,048,801		—		—		—		1,048,801
Held-for-investment at fair value	2,383,932		519,958		2,079,382		1,222,669		6,205,941
Total Residential Loans	$	3,432,733	$	519,958	$	2,079,382	$	1,222,669	$	7,254,742



December 31, 2017			Legacy		Sequoia		Freddie Mac
(In Thousands)	Redwood		Sequoia		Choice		SLST		Total
Held-for-sale
At fair value	$	1,427,052	$	—	$	—	$	—	$	1,427,052
At lower of cost or fair value	893		—		—		—		893
Total held-for-sale	1,427,945		—		—		—		1,427,945
Held-for-investment at fair value	2,434,386		632,817		620,062		—		3,687,265
Total Residential Loans	$	3,862,331	$	632,817	$	620,062	$	—	$	5,115,210

Geographic Concentration of Loans Recorded on Consolidated Balance Sheet

The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2018 and December 31, 2017.

Table 6.2 – Geographic Concentration of Residential Loans



	December 31, 2018
Geographic Concentration (by Principal)	Held-for-Sale		Held-for- Investment at Legacy Sequoia		Held-for- Investment at Sequoia Choice		Held-for-Investment at Freddie Mac SLST		Held-for- Investment at FVO
California	40	%	19	%	39	%	12	%	47	%
Washington	10	%	1	%	7	%	2	%	5	%
Texas	6	%	6	%	8	%	3	%	8	%
Florida	4	%	13	%	4	%	10	%	5	%
New Jersey	2	%	4	%	1	%	7	%	1	%
New York	3	%	10	%	5	%	10	%	3	%
Other states (none greater than 5%)	35	%	47	%	36	%	56	%	31	%
Total	100	%	100	%	100	%	100	%	100	%



	December 31, 2017
Geographic Concentration (by Principal)	Held-for-Sale		Held-for- Investment at Legacy Sequoia		Held-for- Investment at Sequoia Choice		Held-for-Investment at Freddie Mac SLST		Held-for- Investment at FVO
California	35	%	18	%	39	%	—	%	45	%
Washington	9	%	2	%	7	%	—	%	5	%
Texas	7	%	5	%	10	%	—	%	9	%
Florida	4	%	13	%	4	%	—	%	5	%
Georgia	2	%	5	%	3	%	—	%	1	%
New York	2	%	9	%	3	%	—	%	4	%
Other states (none greater than 5%)	41	%	48	%	34	%	—	%	31	%
Total	100	%	100	%	100	%	—	%	100	%

Loan Product Type and Accompanying Loan Characteristics of Loans

The following table displays the loan product type and accompanying loan characteristics of residential loans recorded on our consolidated balance sheets at December 31, 2018 and December 31, 2017.

Table 6.3 – Product Types and Characteristics of Residential Loans



December 31, 2018
(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:
Hybrid ARM loans
	$	—	to	$250	12	2.88	%	to	4.88%	2043-09	-	2046-01	$	2,190	$	59	$	—
	$	251	to	$500	59	2.63	%	to	5.75%	2043-08	-	2048-08	23,986		—		—
	$	501	to	$750	116	2.88	%	to	5.75%	2043-03	-	2048-08	73,360		692		—
	$	751	to	$1,000	129	2.88	%	to	6.38%	2043-09	-	2048-09	111,879		—		—
			over	$1,000	69	3.00	%	to	5.50%	2040-10	-	2048-10	92,151		1,112		—
					385								303,566		1,863		—
Fixed loans
	$	—	to	$250	36	3.30	%	to	5.08%	2028-11	-	2047-12	6,737		—		—
	$	251	to	$500	679	2.75	%	to	5.75%	2027-09	-	2048-11	292,730		—		—
	$	501	to	$750	1,213	2.75	%	to	6.75%	2027-10	-	2048-11	746,503		1,320		1,224
	$	751	to	$1,000	599	2.75	%	to	6.13%	2027-07	-	2048-11	517,075		903		—
			over	$1,000	384	2.80	%	to	5.88%	2031-04	-	2048-11	518,719		2,000		—
					2,911								2,081,764		4,223		1,224
Total HFI at Redwood:					3,296								$	2,385,330	$	6,086	$	1,224

Held-for-Investment at Legacy Sequoia:
ARM loans:
	$	—	to	$250	1,988	1.25	%	to	5.50%	2019-02	-	2035-11	$	206,490	$	7,179	$	3,952
	$	251	to	$500	424	1.25	%	to	5.63%	2023-05	-	2036-05	148,154		5,989		4,368
	$	501	to	$750	110	1.63	%	to	4.50%	2022-01	-	2035-02	67,471		1,309		1,880
	$	751	to	$1,000	61	1.63	%	to	4.38%	2027-11	-	2036-03	51,918		791		2,561
			over	$1,000	37	1.63	%	to	4.38%	2027-12	-	2036-05	61,710		1,023		1,194
					2,620								535,743		16,291		13,955
Hybrid ARM loans:
	$	—	to	$250	4	4.63	%	to	5.00%	2033-08	-	2034-06	769		—		—
	$	251	to	$500	10	2.63	%	to	4.88%	2033-07	-	2034-06	3,675		—		—
	$	501	to	$750	6	4.38	%	to	5.00%	2033-08	-	2034-11	3,667		—		—
			over	$1,000	1	4.88	%	to	4.88%	2033-09	-	2033-09	1,355		—		—
					21								9,466		—		—
Total HFI at Legacy Sequoia:					2,641								$	545,209	$	16,291	$	13,955

Held-for-Investment at Sequoia Choice:
Fixed loans:
	$	—	to	$250	29	2.75	%	to	5.63%	2038-03	-	2048-09	$	5,484	$	—	$	—
	$	251	to	$500	336	3.13	%	to	6.13%	2037-12	-	2048-09	149,917		1,419		925
	$	501	to	$750	1,363	3.13	%	to	6.38%	2037-02	-	2048-09	841,692		3,633		—
	$	751	to	$1,000	761	3.25	%	to	6.50%	2035-04	-	2048-09	659,845		3,549		980
			over	$1,000	311	3.13	%	to	5.88%	2038-01	-	2048-09	384,072		2,188		—
Total HFI at Sequoia Choice:					2,800								$	2,041,010	$	10,789	$	1,905

Table 6.3 – Product Types and Characteristics of Residential Loans (continued)



December 31, 2018
(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 Freddie Mac SLST:
Fixed loans:
	$	—	to	$250	6,404	2.00	%	to	10.50%	2018-12	-	2058-10	$	830,118	$	130,608	$	30,686
	$	251	to	$500	1,469	2.00	%	to	7.38%	2033-08	-	2058-11	466,222		66,706		19,319
	$	501	to	$750	27	2.00	%	to	5.88%	2050-02	-	2057-12	14,634		1,631		523
Total HFI at Freddie Mac SLST:					7,900								$	1,310,974	$	198,945	$	50,528

Held-for-Sale:
ARM loans
	$	—	to	$250	2	4.00	%	to	4.13%	2032-11	-	2032-11	$	150	$	—	$	—
Hybrid ARM loans
	$	251	to	$500	8	3.88	%	to	5.38%	2048-05	-	2048-12	3,795		—		—
	$	501	to	$750	50	3.63	%	to	7.38%	2048-01	-	2049-01	31,759		—		—
	$	751	to	$1,000	27	3.88	%	to	5.25%	2048-02	-	2049-01	23,478		—		—
			over	$1,000	23	3.50	%	to	5.50%	2047-04	-	2048-12	28,112		—		—
					108								87,144		—		—
Fixed loans
	$	—	to	$250	6	4.38	%	to	5.75%	2048-08	-	2048-11	1,180		—		—
	$	251	to	$500	188	3.13	%	to	6.38%	2029-04	-	2049-01	88,204		—		—
	$	501	to	$750	788	3.75	%	to	7.00%	2033-11	-	2049-01	475,935		559		747
	$	751	to	$1,000	295	3.25	%	to	6.63%	2033-12	-	2049-01	255,429		—		—
			over	$1,000	99	3.75	%	to	6.13%	2032-10	-	2049-01	126,392		—		—
					1,376								947,140		559		747
Total Held-for-Sale					1,486								$	1,034,434	$	559	$	747

Table 6.3 – Product Types and Characteristics of Residential Loans (continued)



December 31, 2017
(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:
Hybrid ARM loans
	$	—	to	$250	7	3.50	%	to	3.88%		2043-08	-	2044-01	$	1,589	$	438	$	—
	$	251	to	$500	43	2.63	%	to	4.88%		2043-07	-	2047-10	16,703		566		—
	$	501	to	$750	87	2.88	%	to	5.13%		2040-09	-	2047-11	55,709		1,226		—
	$	751	to	$1,000	82	2.88	%	to	6.00%		2043-12	-	2047-11	71,819		984		—
			over	$1,000	40	3.00	%	to	5.00%		2040-10	-	2047-11	57,641		—		—
					259									203,461		3,214		—
Fixed loans
	$	—	to	$250	34	3.13	%	to	5.08%		2022-10	-	2046-02	6,758		—		—
	$	251	to	$500	681	2.80	%	to	6.13%		2028-02	-	2047-12	296,950		1,380		—
	$	501	to	$750	1,261	2.75	%	to	6.75%		2027-09	-	2047-12	777,103		3,818		—
	$	751	to	$1,000	649	2.75	%	to	5.00%		2027-07	-	2047-12	559,426		2,566		—
			over	$1,000	408	2.80	%	to	5.00%		2030-11	-	2048-01	564,295		—		—
					3,033									2,204,532		7,764		—
Total HFI at Redwood:					3,292									$	2,407,993	$	10,978	$	—

Held-for-Investment at Legacy Sequoia:
ARM loans:
	$	—	to	$250	2,324	1.25	%	to	5.16%		2019-02	-	2035-11	$	253,438	$	7,436	$	7,284
	$	251	to	$500	541	1.00	%	to	5.63%		2021-03	-	2036-05	189,360		9,082		9,178
	$	501	to	$750	151	1.63	%	to	4.00%		2024-05	-	2035-09	91,244		1,995		2,589
	$	751	to	$1,000	76	1.38	%	to	3.38%		2022-01	-	2035-07	65,276		1,790		1,725
			over	$1,000	53	1.00	%	to	4.63%		2027-03	-	2036-05	83,393		—		4,040
					3,145									682,711		20,303		24,816
Hybrid ARM loans:
	$	—	to	$250	4	3.25	%	to	3.75%		2033-08	-	2034-06	530		—		—
	$	251	to	$500	17	2.63	%	to	3.75%		2033-07	-	2034-12	6,170		—		—
	$	501	to	$750	11	3.38	%	to	3.75%		2033-07	-	2034-11	7,091		—		641
			over	$1,000	1	3.75	%	to	3.75%		2033-09	-	2033-09	1,420		—		—
					33									15,211		—		641
Total HFI at Legacy Sequoia:					3,178									$	697,922	$	20,303	$	25,457

Held-for-Investment at Sequoia Choice:
Fixed loans:
	$	—	to	$250	4	2.75	%	to	4.75	%	2043-05	-	2047-07	$	641	$	—	$	—
	$	251	to	$500	85	3.13	%	to	5.75	%	2042-11	-	2047-10	38,900		486		—
	$	501	to	$750	388	3.13	%	to	6.25	%	2037-02	-	2047-11	240,538		672		—
	$	751	to	$1,000	239	3.25	%	to	6.50	%	2043-05	-	2047-10	210,235		—		—
			over	$1,000	90	3.13	%	to	5.88	%	2045-01	-	2047-10	114,433		—		—
Total HFI at Sequoia Choice:					806									$	604,747	$	1,158	$	—

Table 6.3 – Product Types and Characteristics of Residential Loans (continued)



December 31, 2017
(In Thousands)
Loan Balance					Number of Loans	Interest Rate⁽¹⁾				Maturity Date			Total Principal		30-89 Days DQ		90+ Days DQ
Held-for-Sale:
ARM loans
	$	—	to	$250	2	2.88	%	to	3.00%	2032-11	-	2032-11	$	158	$	—	$	—
	$	251	to	$500	1	1.50	%	to	1.50%	2033-10	-	2033-10	286		—		—
					3								444		—		—
Hybrid ARM loans
	$	251	to	$500	8	3.25	%	to	3.88%	2047-07	-	2047-12	3,708		—		—
	$	501	to	$750	44	3.00	%	to	3.88%	2037-06	-	2048-01	28,165		—		—
	$	751	to	$1,000	19	2.88	%	to	4.00%	2044-11	-	2047-12	16,675		—		—
			over	$1,000	22	3.25	%	to	4.00%	2044-08	-	2047-12	30,336		—		—
					93								78,884		—		—
Fixed loans
	$	—	to	$250	1	4.40	%	to	4.40%	2045-07	-	2045-07	132		—		—
	$	251	to	$500	330	3.25	%	to	5.63%	2030-11	-	2048-01	153,021		495		459
	$	501	to	$750	1,005	2.88	%	to	6.00%	2029-08	-	2048-01	613,647		540		—
	$	751	to	$1,000	423	3.00	%	to	6.25%	2029-05	-	2048-01	370,379		878		—
			over	$1,000	158	3.25	%	to	5.75%	2030-11	-	2048-01	192,672		—		—
					1,917								1,329,851		1,913		459
Total Held-for-Sale					2,013								$	1,409,179	$	1,913	$	459


(1)	Rate is net of servicing fee for consolidated loans for which we do not own the MSR.