XML 54 R43.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Residential Investor Loans (Tables)
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Schedule of Classifications and Carrying Value of Loans The following table summarizes the classifications and carrying values of the residential consumer loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at March 31, 2024 and December 31, 2023.
Table 6.1 – Classifications and Carrying Values of Residential Consumer Loans
March 31, 2024LegacyFreddie Mac
(In Thousands)RedwoodSequoiaSequoiaSLSTTotal
Held-for-sale at fair value$511,706 $— $— $— $511,706 
Held-for-investment at fair value— 131,859 5,640,341 1,332,686 7,104,886 
Total Residential Consumer Loans$511,706 $131,859 $5,640,341 $1,332,686 $7,616,592 
December 31, 2023LegacyFreddie Mac
(In Thousands)RedwoodSequoiaSequoiaSLSTTotal
Held-for-sale at fair value$911,192 $— $— $— $911,192 
Held-for-investment at fair value— 139,739 4,640,464 1,359,242 6,139,445 
Total Residential Consumer Loans$911,192 $139,739 $4,640,464 $1,359,242 $7,050,637 
The following table summarizes the classifications and carrying values of the residential investor loans owned at Redwood and at consolidated CAFL entities at March 31, 2024 and December 31, 2023.
Table 7.1 – Classifications and Carrying Values of Residential Investor Loans
March 31, 2024Residential Investor TermResidential Investor Bridge
(In Thousands)RedwoodCAFLRedwoodCAFLTotal
Held-for-sale at fair value$253,774 — $26,777 $— $280,551 
Held-for-investment at fair value— 2,853,052 1,286,233 762,158 4,901,443 
Total Residential Investor Loans$253,774 $2,853,052 $1,313,010 $762,158 $5,181,994 
December 31, 2023Residential Investor TermResidential Investor Bridge
(In Thousands)RedwoodCAFLRedwoodCAFLTotal
Held-for-sale at fair value$144,359 $— $35,891 $— $180,250 
Held-for-investment at fair value— 2,971,725 1,305,727 762,596 5,040,048 
Total Residential Investor Loans$144,359 $2,971,725 $1,341,618 $762,596 $5,220,298 
The following table provides the activity of residential investor loans at Redwood during the three months ended March 31, 2024 and 2023.
Table 7.2 – Activity of Residential Investor Loans at Redwood
Three Months Ended 
 March 31, 2024		Three Months Ended 
 March 31, 2023
(In Thousands)Residential Investor Term at RedwoodResidential Investor Bridge at RedwoodResidential Investor Term at RedwoodResidential Investor Bridge at Redwood
Principal balance of loans originated$117,090 $194,029 $174,078 $255,152 
Principal balance of loans acquired— 15,677 — 9,085 
Principal balance of loans sold to third parties (1)
6,032 53,221 217,702 12,547 
Fair value of loans transferred (2)
— (98,731)— (80,792)
Mortgage banking activities income (loss) recorded (3)
(296)946 12,700 1,119 
Investment fair value changes recorded(1,000)(3,218)— 1,608 
(1)The principal balance of loans sold to third parties is net of $15 million related to construction draws on residential investor bridge loans sold to the Oaktree joint venture.
(2)For residential investor term at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL term securitizations. For residential investor bridge at Redwood, represents the transfer of residential investor bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their inclusion in one of our bridge loan securitizations, which generally have replenishment features.
(3)Represents loan origination fee income and net market valuation changes from the time a loan is originated to when it is sold, securitized or transferred to our investment portfolio. See Table 20.1 for additional detail on Mortgage banking activities income (loss).
The following table provides the activity of residential investor loans held-for-investment at CAFL during the three months ended March 31, 2024 and 2023.
Table 7.3 – Activity of Residential Investor Loans Held-for-Investment at CAFL
Three Months Ended 
 March 31, 2024		Three Months Ended 
 March 31, 2023
(In Thousands)Residential Investor Term at
CAFL		Residential Investor Bridge at CAFLResidential Investor Term at
CAFL		Residential Investor Bridge at CAFL
Net market valuation gains (losses) recorded(1)
$7,583 $3,690 $37,179 $(592)
Fair value of loans transferred to HFI— 98,731 — 80,792 
Footnote to Table 7.3
(1)Net market valuation gains (losses) on residential investor loans held-for-investment at CAFL are recorded through Investment fair value changes, net on our consolidated statements of income. For loans held at our consolidated CAFL Term entities and one CAFL Bridge entity, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 4.2.
The following tables summarize the characteristics of the residential investor loans owned at Redwood and at consolidated CAFL entities at March 31, 2024 and December 31, 2023.
Table 7.4 – Characteristics of Residential Investor Loans
March 31, 2024Term at Redwood
Term at
CAFL(1)
Bridge at RedwoodBridge at CAFL
(Dollars in Thousands)
Number of loans73 1,022 850 1,849 
Unpaid principal balance$263,048 $3,066,563 $1,336,820 $752,084 
Fair value of loans$253,774 $2,853,052 $1,313,010 $762,158 
Weighted average coupon6.95 %5.34 %10.35 %10.62 %
Weighted average remaining loan term (years)7511
Market value of loans pledged as collateral under short-term debt facilities$5,307 N/A$35,653 N/A
Market value of loans pledged as collateral under long-term debt facilities$212,589 N/A$1,223,044 N/A
Delinquency information
Number of loans with 90+ day delinquencies (2)
2 42 48 61 
Unpaid principal balance of loans with 90+ day delinquencies$28,064 $137,447 $92,810 $11,741 
Fair value of loans with 90+ day delinquencies (2)
$15,623 N/A$81,326 N/A
Number of loans in foreclosure
2 10 34 59 
Unpaid principal balance of loans in foreclosure (3)
$28,064 $25,158 $76,483 $5,295 
Fair value of loans in foreclosure (3)
$15,623 N/A$64,999 N/A
December 31, 2023Term at Redwood
Term at
CAFL(1)
Bridge at RedwoodBridge at CAFL
(Dollars in Thousands)
Number of loans38 1,055 925 1,912 
Unpaid principal balance$152,213 $3,194,131 $1,360,957 $756,574 
Fair value of loans$144,359 $2,971,725 $1,341,618 $762,596 
Weighted average coupon6.92 %5.34 %10.41 %10.82 %
Weighted average remaining loan term (years)7511
Market value of loans pledged as collateral under short-term debt facilities$2,393 N/A$92,832 N/A
Market value of loans pledged as collateral under long-term debt facilities$122,541 N/A$1,205,366 N/A
Delinquency information
Number of loans with 90+ day delinquencies (2)
2 45 54 52 
Unpaid principal balance of loans with 90+ day delinquencies$28,263 $143,623 $96,934 $10,646 
Fair value of loans with 90+ day delinquencies (2)
$16,822 N/A$86,137 N/A
Number of loans in foreclosure
2 7 36 47 
Unpaid principal balance of loans in foreclosure (3)
$28,263 $15,708 $79,841 $3,931 
Fair value of loans in foreclosure (3)
$16,822 N/A$69,046 N/A
Footnotes to Table 7.4
(1)The fair value of the loans held by consolidated CAFL Term entities and one CAFL Bridge entity were based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable in accordance with accounting guidance for collateralized financing entities.
(2)The number of loans 90+ days delinquent includes loans in foreclosure.
(3)May include loans that are less than 90 days delinquent.
The following table presents the unpaid principal balance of business purpose loans recorded on our consolidated balance sheets at March 31, 2024 by collateral/strategy type.
Table 7.5 – Residential Investor Loans Collateral/Strategy Type
March 31, 2024Term at Redwood
Term at
CAFL(1)
Bridge at Redwood
Bridge at CAFL(1)
(Dollars in Thousands)
Term
Single family rental185,581 2,393,902 — — 
Multifamily77,467 672,661 — — 
Bridge
Renovate / Build for Rent ("BFR")(2)
— — 602,774 389,451 
Single Asset Bridge ("SAB")(3)
— — 23,023 136,475 
Multifamily(4)
— — 686,456 221,635 
Third-Party Originated— — 24,567 4,523 
Total Residential Investor Loans$263,048 $3,066,563 $1,336,820 $752,084 
(1)The fair value of the loans held by consolidated CAFL Term entities and one CAFL Bridge entity were based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable in accordance with GAAP for collateralized financing entities.
(2)    Includes loans to finance acquisition and/or stabilization of existing housing stock or to finance new construction of residential properties for
    rent.
(3)    Includes loans for light to moderate renovation of residential and small multifamily properties (generally less than 20 units).
(4)    Includes loans for predominantly light to moderate rehabilitation projects on multifamily properties.