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Short-Term Debt | 9 Months Ended
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Sep. 30, 2022
Debt Disclosure [Abstract] |
Short-Term Debt | Short-Term Debt We enter into repurchase agreements ("repo"), loan warehouse agreements, and other forms of collateralized (and partially uncommitted) short-term borrowings with several banks and major investment banking firms. At September 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 September 30, 2022 and December 31, 2021. Table 14.1 – Short-Term Debt
|  | September 30, 2022
(Dollars in Thousands) |  | Number of Facilities |  | Outstanding Balance |  | Limit |  | Weighted Average Interest Rate (1) |  | Maturity (2) |  | Weighted Average Days Until Maturity
Facilities |  |  |  |  |  |  |  |  |  |  |  |
Residential loan warehouse |  | 9 |  |  | $ | 748,962 |  |  | $ | 2,850,000 |  |  | 4.83 | % |  | 12/2022 - 9/2023 |  | 150
Business purpose loan warehouse |  | 4 |  |  | 775,491 |  |  | 1,750,000 |  |  | 5.67 | % |  | 3/2023 - 9/2023 |  | 289
Real estate securities repo |  | 7 |  |  | 124,435 |  |  | — |  |  | 3.50 | % |  | 10/2022 - 12/2022 |  | 32
Total Short-Term Debt Facilities |  | 20 |  |  | 1,648,888 |  |  |  |  |  |  |  |  |
Servicer advance financing |  | 1 |  |  | 233,104 |  |  | 290,000 |  |  | 4.94 | % |  | 11/2023 |  | 397
Promissory notes |  | N/A |  | 30,702 |  |  | N/A |  | 6.58 | % |  | N/A |  | N/A
Convertible notes, net |  | N/A |  | 197,585 |  |  | N/A |  | 4.75 | % |  | 8/2023 |  | 319
Total Short-Term Debt |  |  |  | $ | 2,110,279 |  |  |  |  |  |  |  |  |
|  | 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
Convertible notes, net |  | N/A |  | — |  |  |  |  |  |  |  |  |
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. (2)Promissory notes payable on demand to lender with 90-day notice. Assumed maturity date at September 30, 2022 is December 30, 2022 for this presentation. The following table below presents the value of loans, securities, and other assets pledged as collateral under our short-term debt at September 30, 2022 and December 31, 2021. Table 14.2 – Collateral for Short-Term Debt
(In Thousands) |  | September 30, 2022 |  | December 31, 2021
Collateral Type |  |  |  |
Held-for-sale residential loans |  | $ | 828,192 |  |  | $ | 1,838,797 |
Business purpose loans |  | 982,745 |  |  | 167,687 |
Real estate securities |  |  |  |
On balance sheet |  | 60,457 |  |  | 5,823 |
Sequoia securitizations (1) |  | 77,470 |  |  | 61,525 |
Freddie Mac K-Series securitization (1) |  | 32,047 |  |  | 31,657 |
Total real estate securities owned |  | 169,974 |  |  | 99,005 |
Restricted cash and other assets |  | 4,116 |  |  | 1,962 |
Total Collateral for Short-Term Debt Facilities |  | 1,985,027 |  |  | 2,107,451 |
Cash |  | 15,891 |  |  | 6,480 |
Restricted cash |  | 18,569 |  |  | 25,420 |
Servicer advances |  | 274,934 |  |  | 310,953 |
Total Collateral for Servicer Advance Financing |  | 309,394 |  |  | 342,853 |
Total Collateral for Short-Term Debt |  | $ | 2,294,421 |  |  | $ | 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 nine months ended September 30, 2022, the average balance of our short-term debt facilities was $1.64 billion and $1.65 billion, respectively. At September 30, 2022 and December 31, 2021, accrued interest payable on our short-term debt facilities was $5 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 September 30, 2022, the accrued interest payable balance on this financing was $0.3 million and the unamortized capitalized commitment costs were $0.1 million. In connection with our acquisition of Riverbend, we assumed $43 million of promissory notes which are payable on demand with a 90-day notice from the lender or which may be repaid by us with a 90-day notice. These unsecured, non-marginable, recourse notes were issued in three separate series with fixed interest rates between 6% and 8%. During the three months ended September 30, 2022, we repaid $12 million of principal of these notes. 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 September 30, 2022. At both September 30, 2022 and December 31, 2021, we had no outstanding borrowings on this facility. During the three and nine months ended September 30, 2022, business purpose loan warehouse facilities with a borrowing limits of $450 million and $900 million, respectively, were reclassified to short-term debt from long-term debt as the maturity of these facilities became less than one year. During the three months ended September 30, 2022, $199 million principal amount of 4.75% convertible debt and $1 million of unamortized deferred issuance costs were reclassified from long-term debt to short-term debt as the maturity of the notes was less than one year as of August 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 September 30, 2022. Table 14.3 – Short-Term Debt by Collateral Type and Remaining Maturities
|  | September 30, 2022
(In Thousands) |  | Within 30 days |  | 31 to 90 days |  | Over 90 days |  | Total
Collateral Type |  |  |  |  |  |  |  |
Held-for-sale residential loans |  | $ | — |  |  | $ | 262,804 |  |  | $ | 486,158 |  |  | $ | 748,962 |
Business purpose loans |  | — |  |  | — |  |  | 775,491 |  |  | 775,491 |
Real estate securities |  | 72,233 |  |  | 52,202 |  |  | — |  |  | 124,435 |
Total Secured Short-Term Debt |  | 72,233 |  |  | 315,006 |  |  | 1,261,649 |  |  | 1,648,888 |
Servicer advance financing |  | — |  |  | — |  |  | 233,104 |  |  | 233,104 |
Promissory notes |  | — |  |  | 30,702 |  |  | — |  |  | 30,702 |
Convertible notes, net |  | — |  |  | — |  |  | 197,585 |  |  | 197,585 |
Total Short-Term Debt |  | $ | 72,233 |  |  | $ | 345,708 |  |  | $ | 1,692,338 |  |  | $ | 2,110,279 |

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