Short-Term Debt

6 Months Ended

Jun. 30, 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 June 30, 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 June 30, 2021 and December 31, 2020.

Table 13.1 – Short-Term Debt


	June 30, 2021
(Dollars in Thousands)	Number of Facilities	Outstanding Balance		Limit		Weighted Average Interest Rate (1)		Maturity	Weighted Average Days Until Maturity
Facilities
Residential loan warehouse	6	$	1,049,144	$	2,350,000	1.87	%	8/2021-3/2022	211

Business purpose loan warehouse	2	191,288		355,497		2.99	%	3/2022-5/2022	260
Real estate securities repo	3	80,938		—		1.53	%	7/2021-9/2021	35

Total Short-Term Debt Facilities	11	1,321,370
Servicer advance financing	1	163,629		260,000		1.89	%	11/2021	153

Total Short-Term Debt		$	1,484,999


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

Business purpose loan warehouse	2	99,190		500,000		3.37	%	5/2022-6/2022	521
Real estate securities repo	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 uncommitted and charged interest based on a specified margin over the 1- or 3-month LIBOR.

The following table below presents the value of loans, securities, and other assets pledged as collateral under our short-term debt at June 30, 2021 and December 31, 2020.

Table 13.2 – Collateral for Short-Term Debt


(In Thousands)	June 30, 2021		December 31, 2020
Collateral Type
Held-for-sale residential loans	$	1,152,267	$	156,355
Business purpose loans	249,410		127,029
Real estate securities
On balance sheet	16,435		23,193
Sequoia securitizations (1)	62,387		63,105

Freddie Mac K-Series securitization (1)	30,834		28,255

Total real estate securities owned	109,656		114,553
Restricted cash and other assets	1,709		315
Total Collateral for Short-Term Debt Facilities	1,513,042		398,252
Cash	12,442		9,978
Restricted cash	19,028		23,220
Servicer advances	171,818		217,656
Total Collateral for Servicer Advance Financing	203,288		250,854
Total Collateral for Short-Term Debt	$	1,716,330	$	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 and six months ended June 30, 2021, the average balances of our short-term debt facilities were $1.85 billion and $1.42 billion, respectively. At June 30, 2021 and December 31, 2020, accrued interest payable on our short-term debt facilities was $2 million and $1 million, respectively.

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 June 30, 2021, the accrued interest payable balance on this financing was $0.1 million and the unamortized capitalized commitment costs were $0.4 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 June 30, 2021. At both June 30, 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 June 30, 2021.

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


	June 30, 2021
(In Thousands)	Within 30 days		31 to 90 days		Over 90 days		Total
Collateral Type
Held-for-sale residential loans	$	—	$	119,462	$	929,682	$	1,049,144
Business purpose loans	—		—		191,288		191,288
Real estate securities	44,527		36,411		—		80,938
Total Secured Short-Term Debt	44,527		155,873		1,120,970		1,321,370
Servicer advance financing	—		—		163,629		163,629

Total Short-Term Debt	$	44,527	$	155,873	$	1,284,599	$	1,484,999