XML 43 R24.htm IDEA: XBRL DOCUMENT v3.24.0.1
Short-Term Debt
 12 Months Ended
Dec. 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 December 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 December 31, 2023 and 2022.
Table 14.1 – Short-Term Debt
December 31, 2023
(Dollars in Thousands)Number of FacilitiesOutstanding BalanceLimit
Weighted Average Interest Rate (1)
Maturity (2)
Weighted Average Days Until Maturity
Facilities
Residential loan warehouse 4 $796,537 $1,150,000 7.27 %2/2024-12/2024202
Business purpose loan warehouse2 71,719 455,000 8.14 %5/2024-6/2024166
Real estate securities repo
3 82,622 — 7.01 %1/2024-3/202426
Residential MSR warehouse1 47,858 50,000 8.60 %10/2024302
HEI warehouse1 122,659 150,000 9.89 %8/2024214
Total Short-Term Debt Facilities11 1,121,395 
Servicer advance financing1 153,653 240,000 7.71 %12/2024337
Subordinate securities financing1 124,552 — 7.21 %9/2024266
Promissory notesN/A16,064 — 6.97 %N/AN/A
Convertible notes, netN/A142,558 — 5.63 %7/2024197
Total Short-Term Debt$1,558,222 
December 31, 2022
(Dollars in Thousands)Number of FacilitiesOutstanding BalanceLimit
Weighted Average Interest Rate (1)
Maturity (2)
Weighted Average Days Until Maturity
Facilities
Residential loan warehouse 7 $703,406 $2,550,000 6.16 %3/2023 - 12/2023267
Business purpose loan warehouse4 680,100 1,650,000 6.93 %3/2023 - 9/2023179
Real estate securities repo
7 124,909 — 5.22 %1/2023 - 3/202327
HEI warehouse1 111,681 150,000 8.54 %11/2023306
Total Short-Term Debt Facilities19 1,620,096 
Servicer advance financing1 206,510 290,000 6.67 %11/2023305
Promissory notesN/A27,058 — 6.64 %N/AN/A
Convertible notes, netN/A176,015 — 4.75 %8/2023227
Total Short-Term Debt$2,029,679 
Footnotes to Table 14.1
(1)Borrowings under our facilities generally are uncommitted and charged interest based on a specified margin over SOFR at December 31, 2023 or 1- or 3-month LIBOR at December 31, 2022.
(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 facilities at December 31, 2023 and 2022.
Table 14.2 – Collateral for Short-Term Debt
(In Thousands)December 31, 2023December 31, 2022
Collateral Type
Held-for-sale residential loans$907,742 $775,545 
MSRs (1)
76,560 — 
Business purpose loans 95,225 871,072 
HEI237,973 191,278 
Real estate securities (collateralizing debt facilities)
On balance sheet4,460 72,133 
Sequoia securitizations (2)
52,333 74,170 
Freddie Mac K-Series securitization (2)
33,308 31,767 
CAFL securitizations (2)
32,010 — 
Total real estate securities owned
122,111 178,070 
Restricted cash and other assets— 1,097 
Total Collateral for Short-Term Debt Facilities1,439,611 2,017,062 
Cash15,162 12,713 
Real estate securities (collateralizing subordinate securities financing)175,096 — 
Servicer advances225,345 269,259 
Total Collateral for Short-Term Debt$1,855,214 $2,299,034 
(1)Includes certificated mortgage servicing rights classified as securities on our consolidated balance sheets.
(2)Represents securities we retained from consolidated securitization entities. For GAAP purposes, we consolidate the loans and non-recourse ABS issued from these securitizations.
For the years ended December 31, 2023 and 2022, the average balances of our short-term debt facilities were $1.14 billion and $1.65 billion, respectively. At December 31, 2023 and 2022, accrued interest payable on our short-term debt facilities was $6 million and $7 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.
In 2019, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable (i.e., not subject to margin calls based solely on the lender's determination, in its discretion, of the market value of the underlying collateral that is non-delinquent) recourse debt financing of certain Sequoia securities as well as securities retained from our consolidated Sequoia securitizations ("Subordinate securities financing" in Table 14.1 above). The financing is fully and unconditionally guaranteed by Redwood, and had an interest rate of approximately 4.21% through September 2022, which increased to 5.71% from October 2022 through September 2023, and increased to 7.21% from October 2023 through September 2024. The financing facility has a final maturity in September 2024. During the year ended December 31, 2023, we reclassified this facility from long-term to short-term debt when the maturity of the facility was within one year.
In connection with our acquisition of Riverbend, we assumed promissory notes that 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 year ended December 31, 2023, we reclassified convertible notes maturing in 2024 from long-term to short-term debt when the maturity of the notes was within one year. During the year ended December 31, 2022, we reclassified convertible notes maturing in 2023 from long-term to short-term debt when the maturity of the notes was within one year. See Note 16 for additional details on repurchases of convertible debt in 2022 and 2023.
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 December 31, 2023.
Table 14.3 – Short-Term Debt by Collateral Type and Remaining Maturities
December 31, 2023
(In Thousands)Within 30 days31 to 90 daysOver 90 daysTotal
Collateral Type
Held-for-sale residential loans$— $176,502 $620,035 $796,537 
Business purpose loans— — 71,719 71,719 
Real estate securities53,963 28,659 124,552 207,174 
MSRs— — 47,858 47,858 
HEI— — 122,659 122,659 
Servicer advances— — 153,653 153,653 
Total Secured Short-Term Debt Facilities53,963 205,161 1,140,476 1,399,600 
Promissory notes (unsecured)— 16,064 — 16,064 
Convertible notes, net (unsecured) — — 142,558 142,558 
Total Short-Term Debt$53,963 $221,225 $1,283,034 $1,558,222