Home Equity Investments (HEI) (Tables)

6 Months Ended

Jun. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

The following table presents our HEI at June 30, 2024 and December 31, 2023.

Table 11.1 – Home Equity Investments


(In Thousands)	June 30, 2024		December 31, 2023
HEI at Redwood	$	253,303	$	244,719
HEI held at consolidated HEI securitization entities	320,816		305,717
Total Home Equity Investments	$	574,119	$	550,436

Schedule Of Activity of Home Equity Investments

The following table details our HEI activity during the three and six months ended June 30, 2024 and 2023.

Table 11.2 – Activity of HEI


	Three Months Ended June 30, 2024				Three Months Ended June 30, 2023
(In Thousands)	HEI at Redwood		Securitized HEI		HEI at Redwood		Securitized HEI
Fair value of HEI purchased and originated	$	299	$	—	$	8,954	$	—
Net market valuation gains (losses) recorded	11,663		17,029		8,468		3,138


	Six Months Ended June 30, 2024				Six Months Ended June 30, 2023
(In Thousands)	HEI at Redwood		Securitized HEI		HEI at Redwood		Securitized HEI
Fair value of HEI purchased and originated	$	606	$	—	$	25,513	$	—
Net market valuation gains (losses) recorded	17,806		32,453		12,308		4,206

Schedule Of HEI Characteristics

The following table provides the components of HEI income, net for the three and six months ended June 30, 2024 and 2023, and reflect net market valuation gains (losses) recorded on HEI at Redwood and on securitized HEI, net of the third party and non-controlling interests in the HEI securitizations that are not owned by Redwood.

Table 11.3 – Components of HEI Income, net


(In Thousands)	Three Months Ended June 30, 2024		Three Months Ended June 30, 2023
Net market valuation gains recorded on HEI at Redwood	$	11,663	$	8,468
Net market valuation gains recorded on Securitized HEI	17,029		3,138
Net market valuation (losses) recorded on ABS Issued from HEI securitizations(1)	(5,472)		(1,888)
Net market valuation (losses) recorded on non-controlling interests in HEI securitizations	(7,381)		(797)
Total HEI income, net	$	15,839	$	8,921


(In Thousands)	Six Months Ended June 30, 2024		Six Months Ended June 30, 2023
Net market valuation gains recorded on HEI at Redwood	$	17,806	$	12,308
Net market valuation gains recorded on Securitized HEI	32,453		4,206
Net market valuation (losses) recorded on ABS Issued from HEI securitizations(1)	(12,881)		(1,762)
Net market valuation (losses) recorded on non-controlling interests in HEI securitizations	(12,508)		(1,566)
Total HEI income, net	$	24,870	$	13,186

(1)Amount includes interest expense associated with ABS issued, which totaled $3 million and $1 million for the three and six months ended June 30, 2024 and 2023, respectively.

The following tables summarizes the characteristics of our HEI at June 30, 2024 and December 31, 2023.

Table 11.4 – HEI Characteristics


	June 30, 2024				December 31, 2023
(Dollars in Thousands)	HEI at Redwood		Securitized HEI		HEI at Redwood		Securitized HEI
Number of HEI contracts	1,959		2,317		2,034		2,434
Average initial amount of contract	$	105	$	95	$	105	$	96