Short-Term Debt

6 Months Ended

Jun. 30, 2022

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 June 30, 2022, 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, 2022 and December 31, 2021.

Table 13.1 – Short-Term Debt


	June 30, 2022
(Dollars in Thousands)	Number of Facilities	Outstanding Balance		Limit		Weighted Average Interest Rate (1)		Maturity	Weighted Average Days Until Maturity
Facilities
Residential loan warehouse	7	$	1,085,802	$	2,750,000	3.28	%	8/2022-3/2023	213

Business purpose loan warehouse	3	456,887		1,200,000		4.21	%	3/2023-6/2023	258
Real estate securities repo	4	95,287		—		1.91	%	7/2022-9/2022	32

Total Short-Term Debt Facilities	14	1,637,976
Servicer advance financing	1	231,846		300,000		3.40	%	11/2022	125

Total Short-Term Debt		$	1,869,822


	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	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

(1)Borrowings under our facilities generally are uncommitted and charged interest based on a specified margin over 1-month SOFR or 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, 2022 and December 31, 2021.

Table 13.2 – Collateral for Short-Term Debt


(In Thousands)	June 30, 2022		December 31, 2021
Collateral Type
Held-for-sale residential loans	$	1,207,185	$	1,838,797
Business purpose loans	577,974		167,687
Real estate securities
On balance sheet	10,014		5,823
Sequoia securitizations (1)	82,636		61,525

Freddie Mac K-Series securitization (1)	31,732		31,657

Total real estate securities owned	124,382		99,005
Restricted cash and other assets	2,512		1,962
Total Collateral for Short-Term Debt Facilities	1,912,053		2,107,451
Cash	14,381		6,480
Restricted cash	26,236		25,420
Servicer advances	273,210		310,953
Total Collateral for Servicer Advance Financing	313,827		342,853
Total Collateral for Short-Term Debt	$	2,225,880	$	2,450,304

(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, 2022, the average balance of our short-term debt facilities was $1.64 billion and $1.66 billion, respectively. At June 30, 2022 and December 31, 2021, accrued interest payable on our short-term debt facilities was $3 million and $2 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, 2022, the accrued interest payable balance on this financing was $0.2 million and the unamortized capitalized commitment costs were $0.3 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 June 30, 2022. At both June 30, 2022 and December 31, 2021, we had no outstanding borrowings on this facility.

During the three months ended June 30, 2022, a business purpose loan warehouse facility with a borrowing limit of $450 million was reclassified to short-term debt from long-term debt as the maturity of this facility was less than one year at June 30, 2022.

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, 2022.

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


	June 30, 2022
(In Thousands)	Within 30 days		31 to 90 days		Over 90 days		Total
Collateral Type
Held-for-sale residential loans	$	—	$	128,440	$	957,362	$	1,085,802
Business purpose loans	—		—		456,887		456,887
Real estate securities	57,323		37,964		—		95,287
Total Secured Short-Term Debt	57,323		166,404		1,414,249		1,637,976
Servicer advance financing	—		—		231,846		231,846

Total Short-Term Debt	$	57,323	$	166,404	$	1,646,095	$	1,869,822