Short-Term Debt

3 Months Ended

Mar. 31, 2021

We enter into repurchase agreements, bank warehouse agreements, and other forms of collateralized (and generally uncommitted) short-term borrowings with several banks and major investment banking firms. At March 31, 2021, we had outstanding agreements with several counterparties and we were in compliance with all of the related covenants.

The table below summarizes our short-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at March 31, 2021 and December 31, 2020.

Table 13.1 – Short-Term Debt


	March 31, 2021
(Dollars in Thousands)	Number of Facilities	Outstanding Balance		Limit		Weighted Average Interest Rate		Maturity	Weighted Average Days Until Maturity
Facilities
Residential loan warehouse (1)	5	$	839,224	$	1,600,000	2.15	%	8/2021-3/2022	268

Business purpose loan warehouse (2)	2	140,916		500,000		3.54	%	5/2022-6/2022	436
Real estate securities repo (1)	3	81,670		—		1.72	%	4/2021-6/2021	35

Total Short-Term Debt Facilities	10	1,061,810
Servicer advance financing	1	192,072		335,000		1.91	%	11/2021	244

Total Short-Term Debt		$	1,253,882


	December 31, 2020
(Dollars in Thousands)	Number of Facilities	Outstanding Balance		Limit		Weighted Average Interest Rate		Maturity	Weighted Average Days Until Maturity
Facilities
Residential loan warehouse (1)	4	$	137,269	$	1,300,000	2.45	%	1/2021-11/2021	268

Business purpose loan warehouse (2)	2	99,190		500,000		3.37	%	5/2022-6/2022	521
Real estate securities repo (1)	3	77,775		—		2.24	%	1/2021-3/2021	36
Total Short-Term Debt Facilities	9	314,234
Servicer advance financing	1	208,375		335,000		1.95	%	11/2021	334

Total Short-Term Debt		$	522,609

(1)Borrowings under our facilities are generally charged interest based on a specified margin over the one-month LIBOR interest rate. At March 31, 2021 and December 31, 2020, all of these borrowings were under uncommitted facilities and were due within 364 days (or less) of the borrowing date.

(2)Due to the revolving nature of the borrowings under these facilities, we have classified these facilities as short-term debt at March 31, 2021. Borrowings under these facilities will be repaid as the underlying loans mature or are sold to third parties or transferred to securitizations.

The following table below presents the value of loans, securities, and other assets pledged as collateral under our short-term debt at March 31, 2021 and December 31, 2020.

Table 13.2 – Collateral for Short-Term Debt


(In Thousands)	March 31, 2021		December 31, 2020
Collateral Type
Held-for-sale residential loans	$	926,076	$	156,355
Business purpose loans	164,829		127,029
Real estate securities
On balance sheet	16,611		23,193
Sequoia Choice securitizations (1)	63,194		63,105

Freddie Mac K-Series securitization (1)	28,979		28,255

Total real estate securities owned	108,784		114,553
Restricted cash and other assets	17,381		315
Total Collateral for Short-Term Debt Facilities	1,217,070		398,252
Cash	10,698		9,978
Restricted cash	29,518		23,220
Servicer advances	192,852		217,656
Total Collateral for Servicer Advance Financing	233,068		250,854
Total Collateral for Short-Term Debt	$	1,450,138	$	649,106

(1)Represents securities we have retained from consolidated securitization entities. For GAAP purposes, we consolidate the loans and non-recourse ABS debt issued from these securitizations.

For the three months ended March 31, 2021 and 2020, the average balances of our short-term debt facilities were $988 million and $1.74 billion, respectively. At both March 31, 2021 and December 31, 2020, accrued interest payable on our short-term debt facilities was $1 million.

Servicer advance financing consists of non-recourse short-term securitization debt used to finance servicer advance investments. We consolidate the securitization entity that issued the debt, but the entity is independent of Redwood and the assets and liabilities are not owned by and are not legal obligations of Redwood. At March 31, 2021, the accrued interest payable balance on this financing was $0.1 million and the unamortized capitalized commitment costs were $1 million.

We also maintain a $10 million committed line of credit with a financial institution that is secured by certain mortgage-backed securities with a fair market value of $2 million at March 31, 2021. At both March 31, 2021 and December 31, 2020, we had no outstanding borrowings on this facility.

Remaining Maturities of Short-Term Debt

The following table presents the remaining maturities of our secured short-term debt by the type of collateral securing the debt at March 31, 2021.

Table 13.3 – Short-Term Debt by Collateral Type and Remaining Maturities


	March 31, 2021
(In Thousands)	Within 30 days		31 to 90 days		Over 90 days		Total
Collateral Type
Held-for-sale residential loans	$	—	$	—	$	839,224	$	839,224
Business purpose loans	—		—		140,916		140,916
Real estate securities	44,391		37,279		—		81,670
Total Secured Short-Term Debt	44,391		37,279		980,140		1,061,810
Servicer advance financing	—		—		192,072		192,072

Total Short-Term Debt	$	44,391	$	37,279	$	1,172,212	$	1,253,882