XML 37 R23.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Short-Term Debt | 12 Months Ended
--- | ---
Dec. 31, 2021
Debt Disclosure [Abstract] |
Short-Term Debt | Short-Term Debt We enter into repurchase agreements ("repo"), loan warehouse agreements, and other forms of collateralized (and generally uncommitted) short-term borrowings with several banks and major investment banking firms. At December 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 December 31, 2021 and 2020. Table 13.1 – Short-Term Debt
|  | December 31, 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 (1) |  | 7 |  |  | $ | 1,669,344 |  |  | $ | 2,900,000 |  |  | 1.87 | % |  | 1/2022-12/2022 |  | 153
Business purpose loan warehouse |  | 2 |  |  | 138,746 |  |  | 350,000 |  |  | 3.34 | % |  | 3/2022-7/2022 |  | 105
Real estate securities repo |  | 4 |  |  | 74,825 |  |  | — |  |  | 1.13 | % |  | 1/2022-3/2022 |  | 33
Total Short-Term Debt Facilities |  | 13 |  |  | 1,882,915 |  |  |  |  |  |  |  |  |
Servicer advance financing |  | 1 |  |  | 294,447 |  |  | 350,000 |  |  | 1.90 | % |  | 11/2022 |  | 306
Total Short-Term Debt |  |  |  | $ | 2,177,362 |  |  |  |  |  |  |  |  |
|  | 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) |  | 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, or 1-month SOFR. (2)Due to the revolving nature of the borrowings under these facilities, we have classified certain these facilities as short-term debt at December 31, 2021 and 2020. 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 and securities pledged as collateral under our short-term debt facilities at December 31, 2021 and 2020. Table 13.2 – Collateral for Short-Term Debt
(In Thousands) |  | December 31, 2021 |  | December 31, 2020
Collateral Type |  |  |  |
Held-for-sale residential loans |  | $ | 1,838,797 |  |  | $ | 156,355 |
Business purpose loans |  | 167,687 |  |  | 127,029 |
Real estate securities |  |  |  |
On balance sheet |  | 5,823 |  |  | 23,193 |
Sequoia securitizations (1) |  | 61,525 |  |  | 63,105 |
Freddie Mac K-Series securitizations (1) |  | 31,657 |  |  | 28,255 |
Total real estate securities owned |  | 99,005 |  |  | 114,553 |
Other assets |  | 1,962 |  |  | 315 |
Total Collateral for Short-Term Debt Facilities |  | $ | 2,107,451 |  |  | $ | 398,252 |
Cash |  | 6,480 |  |  | 9,978 |
Restricted cash |  | 25,420 |  |  | 23,220 |
Servicer advances |  | 310,953 |  |  | 217,656 |
Total Collateral for Servicer Advance Financing |  | 342,853 |  |  | 250,854 |
Total Collateral for Short-Term Debt |  | $ | 2,450,304 |  |  | $ | 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 years ended December 31, 2021 and 2020, the average balances of our short-term debt facilities were $1.67 billion and $1.19 billion, respectively. At December 31, 2021 and 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 December 31, 2021, the accrued interest payable balance on this financing was $0.2 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 $1 million at December 31, 2021. At both December 31, 2021 and 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 as well as our convertible notes at December 31, 2021. Table 13.3 – Short-Term Debt by Collateral Type and Remaining Maturities
|  | December 31, 2021
(In Thousands) |  | Within 30 days |  | 31 to 90 days |  | Over 90 days |  | Total
Collateral Type |  |  |  |  |  |  |  |
Held-for-sale residential loans |  | $ | 101,885 |  |  | $ | 1,022,271 |  |  | $ | 545,188 |  |  | $ | 1,669,344 |
Business purpose loans |  | — |  |  | 103,925 |  |  | 34,821 |  |  | 138,746 |
Real estate securities |  | 43,833 |  |  | 30,992 |  |  | — |  |  | 74,825 |
Total Secured Short-Term Debt |  | 145,718 |  |  | 1,157,188 |  |  | 580,009 |  |  | 1,882,915 |
Servicer advance financing |  | — |  |  | — |  |  | 294,447 |  |  | 294,447 |
Total Short-Term Debt |  | $ | 145,718 |  |  | $ | 1,157,188 |  |  | $ | 874,456 |  |  | $ | 2,177,362 |

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

X
- Definition The entire disclosure for short-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_ShortTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration