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Short-Term Debt | 3 Months Ended
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Mar. 31, 2023
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 March 31, 2023, 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 March 31, 2023 and December 31, 2022. Table 14.1 – Short-Term Debt
|  | March 31, 2023
(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 |  | 6 |  |  | $ | 25,590 |  |  | $ | 1,750,000 |  |  | 6.83 | % |  | 5/2023-12/2023 |  | 229
Business purpose loan warehouse |  | 4 |  |  | 777,067 |  |  | 1,650,000 |  |  | 7.31 | % |  | 5/2023-9/2023 |  | 112
Real estate securities repo |  | 7 |  |  | 325,549 |  |  | — |  |  | 6.11 | % |  | 4/2023-6/2023 |  | 28
HEI warehouse |  | 1 |  |  | 125,071 |  |  | 150,000 |  |  | 9.39 | % |  | 11/2023 |  | 216
Total Short-Term Debt Facilities |  | 18 |  |  | 1,253,277 |  |  |  |  |  |  |  |  |
Servicer advance financing |  | 1 |  |  | 197,883 |  |  | 290,000 |  |  | 7.04 | % |  | 11/2023 |  | 215
Promissory notes |  | N/A |  | 21,808 |  |  | — |  |  | 6.76 | % |  | N/A |  | N/A
Convertible notes, net |  | N/A |  | 143,484 |  |  | — |  |  | 4.75 | % |  | 8/2023 |  | 137
Total Short-Term Debt |  |  |  | $ | 1,616,452 |  |  |  |  |  |  |  |  |
|  | December 31, 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 |  |  | $ | 703,406 |  |  | $ | 2,550,000 |  |  | 6.16 | % |  | 3/2023 - 12/2023 |  | 267
Business purpose loan warehouse |  | 4 |  |  | 680,100 |  |  | 1,650,000 |  |  | 6.93 | % |  | 3/2023 - 9/2023 |  | 179
Real estate securities repo |  | 7 |  |  | 124,909 |  |  | — |  |  | 5.22 | % |  | 1/2023 - 3/2023 |  | 27
HEI warehouse |  | 1 |  |  | 111,681 |  |  | 150,000 |  |  | 8.54 | % |  | 11/2023 |  | 306
Total Short-Term Debt Facilities |  | 19 |  |  | 1,620,096 |  |  |  |  |  |  |  |  |
Servicer advance financing |  | 1 |  |  | 206,510 |  |  | 290,000 |  |  | 6.67 | % |  | 11/2023 |  | 305
Promissory notes |  | N/A |  | 27,058 |  |  | — |  |  | 6.64 | % |  | N/A |  | N/A
Convertible notes, net |  | N/A |  | 176,015 |  |  | — |  |  | 4.75 | % |  | 8/2023 |  | 227
Total Short-Term Debt |  |  |  | $ | 2,029,679 |  |  |  |  |  |  |  |  |
(1)Borrowings under our facilities generally are uncommitted and charged interest based on a specified margin over SOFR. (2)Promissory notes payable on demand to lender with 90-day notice. The following table below presents the value of loans, securities, and other assets pledged as collateral under our short-term debt at March 31, 2023 and December 31, 2022. Table 14.2 – Collateral for Short-Term Debt
(In Thousands) |  | March 31, 2023 |  | December 31, 2022
Collateral Type |  |  |  |
Held-for-sale residential loans |  | $ | 26,282 |  |  | $ | 775,545 |
Business purpose loans |  | 1,021,051 |  |  | 871,072 |
HEI |  | 215,517 |  |  | 191,278 |
Real estate securities |  |  |  |
On balance sheet |  | 71,017 |  |  | 72,133 |
Sequoia securitizations (1) |  | 110,821 |  |  | 74,170 |
Freddie Mac SLST securitizations (1) |  | 247,970 |  |  | — |
Freddie Mac K-Series securitization (1) |  | 32,130 |  |  | 31,767 |
Total real estate securities owned |  | 461,938 |  |  | 178,070 |
Restricted cash and other assets |  | 2,023 |  |  | 1,097 |
Total Collateral for Short-Term Debt Facilities |  | 1,726,811 |  |  | 2,017,062 |
Cash |  | 17,329 |  |  | 12,713 |
Restricted cash |  | — |  |  | — |
Servicer advances |  | 269,259 |  |  | 269,259 |
Total Collateral for Servicer Advance Financing |  | 286,588 |  |  | 281,972 |
Total Collateral for Short-Term Debt |  | $ | 2,013,399 |  |  | $ | 2,299,034 |
(1)Represents securities we retained from consolidated securitization entities. For GAAP purposes, we consolidate the loans and non-recourse ABS debt issued from these securitizations. For the three months ended March 31, 2023, the average balance of our short-term debt facilities was $1.17 billion. At March 31, 2023 and December 31, 2022, accrued interest payable on our short-term debt facilities was $7 million. 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 March 31, 2023, the accrued interest payable balance on this financing was $0.5 million and the unamortized capitalized commitment costs were $0.5 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 March 31, 2023, we repaid $5 million of principal of these notes. During the three months ended March 31, 2023, we repurchased $33 million of convertible debt due in 2023 and recorded a $0.1 million gain on extinguishment. At March 31, 2023 the outstanding principal balance of our convertible debt due in August 2023 was $144 million. 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 March 31, 2023. Table 14.3 – Short-Term Debt by Collateral Type and Remaining Maturities
|  | March 31, 2023
(In Thousands) |  | Within 30 days |  | 31 to 90 days |  | Over 90 days |  | Total
Collateral Type |  |  |  |  |  |  |  |
Held-for-sale residential loans |  | $ | — |  |  | $ | — |  |  | $ | 25,590 |  |  | $ | 25,590 |
Business purpose loans |  | — |  |  | 497,066 |  |  | 280,001 |  |  | 777,067 |
Real estate securities |  | 276,367 |  |  | 49,182 |  |  | — |  |  | 325,549 |
HEI warehouse |  | — |  |  | — |  |  | 125,071 |  |  | 125,071 |
Total Secured Short-Term Debt |  | 276,367 |  |  | 546,248 |  |  | 430,662 |  |  | 1,253,277 |
Servicer advance financing |  | — |  |  | — |  |  | 197,883 |  |  | 197,883 |
Promissory notes |  | — |  |  | 21,808 |  |  | — |  |  | 21,808 |
Convertible notes, net |  | — |  |  | — |  |  | 143,484 |  |  | 143,484 |
Total Short-Term Debt |  | $ | 276,367 |  |  | $ | 568,056 |  |  | $ | 772,029 |  |  | $ | 1,616,452 |

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- 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 https://asc.fasb.org/topic&trid=2208564 + Details
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