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Short-Term Debt | 3 Months Ended
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Mar. 31, 2024
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, 2024, 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, 2024 and December 31, 2023. Table 14.1 – Short-Term Debt
|  | March 31, 2024
(Dollars in Thousands) |  | Number of Facilities |  | Outstanding Balance |  | Limit |  | Weighted Average Interest Rate (1) |  | Maturity (2) |  | Weighted Average Days Until Maturity
Facilities |  |  |  |  |  |  |  |  |  |  |  |
Residential consumer loan warehouse (3) |  | 5 |  |  | $ | 470,761 |  |  | $ | 1,350,000 |  |  | 7.26 | % |  | 5/2024-3/2025 |  | 226
Residential investor loan warehouse |  | 2 |  |  | 31,321 |  |  | 455,000 |  |  | 8.06 | % |  | 5/2024-6/2024 |  | 71
Real estate securities repo |  | 4 |  |  | 80,657 |  |  | — |  |  | 6.81 | % |  | 4/2024-6/2024 |  | 38
Residential MSR warehouse |  | 1 |  |  | 46,514 |  |  | 50,000 |  |  | 8.58 | % |  | 10/2024 |  | 211
HEI warehouse |  | 1 |  |  | 119,851 |  |  | 150,000 |  |  | 9.84 | % |  | 8/2024 |  | 123
Total Short-Term Debt Facilities |  | 13 |  |  | 749,104 |  |  |  |  |  |  |  |  |
Servicer advance financing |  | 1 |  |  | 147,341 |  |  | 240,000 |  |  | 7.68 | % |  | 12/2024 |  | 246
Recourse subordinate securities financing |  | 2 |  |  | 223,934 |  |  | — |  |  | 7.21 | % |  | 9/2024-2/2025 |  | 235
Promissory notes |  | N/A |  | 15,273 |  |  | — |  |  | 7.02 | % |  | N/A |  | N/A
Convertible notes, net |  | N/A |  | 115,792 |  |  | — |  |  | 5.63 | % |  | 7/2024 |  | 106
Total Short-Term Debt |  |  |  | $ | 1,251,444 |  |  |  |  |  |  |  |  |
|  | December 31, 2023
(Dollars in Thousands) |  | Number of Facilities |  | Outstanding Balance |  | Limit |  | Weighted Average Interest Rate (1) |  | Maturity |  | Weighted Average Days Until Maturity
Facilities |  |  |  |  |  |  |  |  |  |  |  |
Residential consumer loan warehouse |  | 4 |  |  | $ | 796,537 |  |  | $ | 1,150,000 |  |  | 7.27 | % |  | 2/2024-12/2024 |  | 202
Residential investor loan warehouse |  | 2 |  |  | 71,719 |  |  | 455,000 |  |  | 8.14 | % |  | 5/2024-6/2024 |  | 166
Real estate securities repo |  | 3 |  |  | 82,622 |  |  | — |  |  | 7.01 | % |  | 1/2024-3/2024 |  | 26
Residential MSR warehouse |  | 1 |  |  | 47,858 |  |  | 50,000 |  |  | 8.60 | % |  | 10/2024 |  | 302
HEI warehouse |  | 1 |  |  | 122,659 |  |  | 150,000 |  |  | 9.89 | % |  | 8/2024 |  | 214
Total Short-Term Debt Facilities |  | 11 |  |  | 1,121,395 |  |  |  |  |  |  |  |  |
Servicer advance financing |  | 1 |  |  | 153,653 |  |  | 240,000 |  |  | 7.71 | % |  | 12/2024 |  | 337
Recourse subordinate securities financing |  | 1 |  |  | 124,552 |  |  | — |  |  | 7.21 | % |  | 9/2024 |  | 266
Promissory notes |  | N/A |  | 16,064 |  |  | — |  |  | 6.97 | % |  | N/A |  | N/A
Convertible notes, net |  | N/A |  | 142,558 |  |  | — |  |  | 5.63 | % |  | 7/2024 |  | 197
Total Short-Term Debt |  |  |  | $ | 1,558,222 |  |  |  |  |  |  |  |  |
Footnotes to table 14.1 (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. (3)At March 31, 2024, includes one non-recourse facility with a borrowing limit of $300 million and a maturity of March 2025. The following table below presents the value of loans, securities, and other assets pledged as collateral under our short-term debt at March 31, 2024 and December 31, 2023. Table 14.2 – Collateral for Short-Term Debt
(In Thousands) |  | March 31, 2024 |  | December 31, 2023
Collateral Type |  |  |  |
Held-for-sale residential consumer loans |  | $ | 507,450 |  |  | $ | 907,742 |
MSRs (1) |  | 84,831 |  |  | 76,560 |
Residential investor loans |  | 40,961 |  |  | 95,225 |
HEI |  | 239,665 |  |  | 237,973 |
Real estate securities (collateralizing debt facilities) |  |  |  |
On balance sheet |  | 4,470 |  |  | 4,460 |
Sequoia securitizations (2) |  | 43,653 |  |  | 52,333 |
Freddie Mac K-Series securitization (2) |  | 33,551 |  |  | 33,308 |
CAFL securitizations (2) |  | 32,336 |  |  | 32,010 |
Total real estate securities owned |  | 114,010 |  |  | 122,111 |
Restricted cash and other assets |  | 580 |  |  | — |
Total Collateral for Short-Term Debt Facilities |  | 987,497 |  |  | 1,439,611 |
Cash |  | 14,357 |  |  | 15,162 |
Real estate securities (recourse subordinate securities financing) |  | 313,148 |  |  | 175,096 |
Servicer advances |  | 216,033 |  |  | 225,345 |
Total Collateral for Short-Term Debt |  | $ | 1,531,035 |  |  | $ | 1,855,214 |
(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 three months ended March 31, 2024, the average balance of our short-term debt facilities was $951 million. At March 31, 2024 and December 31, 2023, accrued interest payable on our short-term debt facilities was $4 million and $6 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, 5.71% from October 2022 through September 2023, and 7.21% from October 2023 through final maturity in September 2024. 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 three months ended March 31, 2024, we repurchased $27 million of our convertible notes due in 2024. At March 31, 2024 the outstanding principal balance of our convertible notes due in July 2024 was $116 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, 2024. Table 14.3 – Short-Term Debt by Collateral Type and Remaining Maturities
|  | March 31, 2024
(In Thousands) |  | Within 30 days |  | 31 to 90 days |  | Over 90 days |  | Total
Collateral Type |  |  |  |  |  |  |  |
Held-for-sale residential consumer loans |  | $ | — |  |  | $ | 92,411 |  |  | $ | 378,350 |  |  | $ | 470,761 |
Residential investor loans |  | — |  |  | 31,321 |  |  | — |  |  | 31,321 |
Real estate securities |  | 35,846 |  |  | 44,811 |  |  | 223,934 |  |  | 304,591 |
MSRs |  | — |  |  | — |  |  | 46,514 |  |  | 46,514 |
HEI |  | — |  |  | — |  |  | 119,851 |  |  | 119,851 |
Servicer advances |  | — |  |  | — |  |  | 147,341 |  |  | 147,341 |
Total Secured Short-Term Debt Facilities |  | 35,846 |  |  | 168,543 |  |  | 915,990 |  |  | 1,120,379 |
Promissory notes (unsecured) |  | — |  |  | 15,273 |  |  | — |  |  | 15,273 |
Convertible notes, net (unsecured) |  | — |  |  | — |  |  | 115,792 |  |  | 115,792 |
Total Short-Term Debt |  | $ | 35,846 |  |  | $ | 183,816 |  |  | $ | 1,031,782 |  |  | $ | 1,251,444 |

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