XML 158 R21.htm IDEA: XBRL DOCUMENT
v3.19.3

Other Assets and Liabilities | 9 Months Ended
--- | ---
Sep. 30, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] |
Other Assets and Liabilities | Other Assets and Liabilities Other assets at September 30, 2019 and December 31, 2018 are summarized in the following table. Table 12.1 – Components of Other Assets
(In Thousands) |  | September 30, 2019 |  | December 31, 2018
Margin receivable |  | $ | 226,727 |  |  | $ | 100,773 |
Pledged collateral |  | 57,832 |  |  | 42,433 |
FHLBC stock |  | 43,393 |  |  | 43,393 |
Investment receivable |  | 14,375 |  |  | 6,959 |
Right-of-use asset |  | 11,076 |  |  | — |
REO |  | 5,069 |  |  | 3,943 |
Fixed assets and leasehold improvements (1) |  | 4,794 |  |  | 5,106 |
Other |  | 14,044 |  |  | 15,218 |
Total Other Assets |  | $ | 377,310 |  |  | $ | 217,825 |
(1) | Fixed assets and leasehold improvements had a basis of $11 million and accumulated depreciation of $6 million at September 30, 2019.
Accrued expenses and other liabilities at September 30, 2019 and December 31, 2018 are summarized in the following table. Table 12.2 – Components of Accrued Expenses and Other Liabilities
(In Thousands) |  | September 30, 2019 |  | December 31, 2018
Contingent consideration |  | $ | 25,167 |  |  | $ | — |
Payable to minority partner |  | 18,664 |  |  | 14,331 |
Accrued compensation |  | 17,219 |  |  | 19,769 |
Guarantee obligations |  | 15,016 |  |  | 16,711 |
Lease liability |  | 12,570 |  |  | — |
Deferred tax liabilities |  | 11,986 |  |  | 9,022 |
Margin payable |  | 6,658 |  |  | 835 |
Accrued operating expenses |  | 6,036 |  |  | 3,122 |
Residential bridge loan holdbacks |  | 4,465 |  |  | — |
Residential loan and MSR repurchase reserve |  | 3,947 |  |  | 4,189 |
Legal reserve |  | 2,000 |  |  | 2,000 |
Other |  | 6,014 |  |  | 8,740 |
Total Accrued Expenses and Other Liabilities |  | $ | 129,742 |  |  | $ | 78,719 |
Margin Receivable and Payable Margin receivable and payable resulted from margin calls between us and our counterparties under derivatives, master repurchase agreements, and warehouse facilities, whereby we or the counterparty posted collateral. FHLBC Stock In accordance with our FHLB-member subsidiary's borrowing agreement with the FHLBC, our subsidiary is required to purchase and hold stock in the FHLBC. See Note 3 and Note 15 for additional information on this borrowing agreement. Pledged Collateral and Guarantee Obligations The pledged collateral and guarantee obligations presented in the tables above are related to our risk-sharing arrangements with Fannie Mae and Freddie Mac, as well as collateral pledged to a clearinghouse related to our interest rate agreements. In accordance with these arrangements, we are required to pledge collateral to secure our guarantee obligations and to meet margin requirements for our interest rate agreements. See Note 3 and Note 16 for additional information on our risk-sharing arrangements. Contingent Consideration The contingent consideration presented in the table above is related to our acquisition of 5 Arches in the first quarter of 2019. See Note 16 for additional information on our contingent consideration liabilities. Lease Liability and Right-of-Use Asset The lease liability and right-of-use asset presented in the tables above resulted from our adoption of ASU 2016-02, "Leases," in the first quarter of 2019. The lease liability is equal to the present value of our remaining lease payments discounted at our incremental borrowing rate and the right-of-use asset is equal to the lease liability adjusted for our deferred rent liability. These balances are reduced as lease payments are made. See Note 16 for additional information on leases. Residential Bridge Loan Holdbacks Residential bridge loan holdbacks represent loan amounts payable to residential bridge loan borrowers subject to the completion of various phases of property rehabilitation. Investment Receivable At September 30, 2019, investment receivable primarily consisted of unsettled trade receivables related to real estate securities sales. In accordance with our policy to record purchases and sales of securities on the trade date, if the trade and settlement of a purchase or sale crosses over a quarterly reporting period, we will record an investment receivable for sales and an unsettled trades liability for purchases. REO The carrying value of REO at September 30, 2019 was $5 million, which included $0.5 million of REO from our Legacy Sequoia entities, $5 million from our residential bridge loan portfolio, and $0.1 million from our consolidated Freddie Mac SLST entities. During the nine months ended September 30, 2019, transfers into REO included $0.2 million from Legacy Sequoia entities, a $5 million residential bridge loan, and $0.1 million from Freddie Mac SLST entities. During the nine months ended September 30, 2019, there were Legacy Sequoia REO liquidations of $5 million, resulting in $1 million of unrealized gains which were recorded in Investment fair value changes, net, on our consolidated statements of income. At September 30, 2019, there were three REO properties at our Legacy Sequoia entities, one residential bridge loan REO property, and one REO property at our Freddie Mac SLST entities recorded on our consolidated balance sheets. At December 31, 2018, there were 13 REO properties recorded, all of which were owned at consolidated Legacy Sequoia entities. Legal and Repurchase Reserves See Note 16 for additional information on the legal and residential repurchase reserves. Payable to Minority Partner In 2018, Redwood and a third-party co-investor, through two partnership entities consolidated by Redwood, purchased servicer advances and excess MSRs related to a portfolio of residential mortgage loans serviced by the co-investor (see Note 4 and Note 10 for additional information on the partnership entities and associated investments). We account for the co-investor’s interests in the entities as liabilities and at September 30, 2019, the carrying value of their interests was $19 million, representing their current economic interest in the entities. Earnings from the partnership entities are allocated to the co-investors on a proportional basis and during the three and nine months ended September 30, 2019, we allocated $0.4 million and $0.9 million of gains to the co-investors, respectively, which were recorded in Other income, net on our consolidated statements of income.

X
- Definition Other Assets And Other Liabilities Disclosure + References No definition available. + Details
Name: | rwt_OtherAssetsAndOtherLiabilitiesDisclosureTextBlock
Namespace Prefix: | rwt_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration