Short-Term Debt

12 Months Ended

Dec. 31, 2021

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