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Residential Consumer Loans (Tables)
 9 Months Ended
Sep. 30, 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 the consolidated Sequoia and Freddie Mac SLST entities at September 30, 2024 and December 31, 2023.
Table 7.1 – Classifications and Carrying Values of Residential Consumer Loans
September 30, 2024Freddie Mac
(In Thousands)RedwoodSequoiaSLSTTotal
Held-for-sale at fair value$1,362,349 $— $— $1,362,349 
Held-for-investment at fair value— 8,476,004 1,318,806 9,794,810 
Total Residential Consumer Loans$1,362,349 $8,476,004 $1,318,806 $11,157,159 
December 31, 2023Freddie Mac
(In Thousands)RedwoodSequoiaSLSTTotal
Held-for-sale at fair value$911,192 $— $— $911,192 
Held-for-investment at fair value— 4,780,203 1,359,242 6,139,445 
Total Residential Consumer Loans$911,192 $4,780,203 $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 September 30, 2024 and December 31, 2023.
Table 8.1 – Classifications and Carrying Values of Residential Investor Loans
September 30, 2024Residential Investor TermResidential Investor Bridge
(In Thousands)RedwoodCAFLRedwoodCAFLTotal
Held-for-sale at fair value$174,485 $— $91,393 $— $265,878 
Held-for-investment at fair value— 2,661,885 1,211,081 607,330 4,480,296 
Total Residential Investor Loans$174,485 $2,661,885 $1,302,474 $607,330 $4,746,174 
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 and nine months ended September 30, 2024 and 2023.
Table 8.2 – Activity of Residential Investor Loans at Redwood
Three Months Ended 
 September 30, 2024		Three Months Ended September 30, 2023
(In Thousands)Term at RedwoodBridge at RedwoodTerm at RedwoodBridge at Redwood
Principal balance of loans originated$158,584 $286,833 $105,777 $303,284 
Principal balance of loans acquired3,145 — — 1,820 
Principal balance of loans sold to third parties (1)
206,380 67,655 27,436 34,061 
Fair value of loans transferred (2)
— (62,386)(278,751)(116,679)
Mortgage banking activities income (loss) recorded (3)
6,061 694 1,600 1,438 
Investment fair value changes recorded(1,500)(10,293)— (16,899)
Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
(In Thousands)Term at RedwoodBridge at RedwoodTerm at RedwoodBridge at Redwood
Principal balance of loans originated$493,212 $714,977 $408,477 $828,149 
Principal balance of loans acquired3,793 15,677 — 19,054 
Principal balance of loans sold to third parties (1)
464,836 277,170 425,542 65,868 
Fair value of loans transferred (2)
— (250,319)(278,751)(337,657)
Mortgage banking activities income recorded (3)
11,833 2,748 13,214 4,808 
Investment fair value changes recorded(2,837)(27,503)(14,430)(22,867)
(1)For the three and nine months ended September 30, 2024 the principal balance of loans sold to third parties is net of $13 million and $34 million, respectively, related to construction draws on residential investor bridge loans sold to our joint ventures. See Note 11 for additional information on these joint ventures.
(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 for a set period of time from the closing date.
(3)Represents 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 5.1 for additional detail on Mortgage banking activities income.
The following table provides the activity of residential investor loans held-for-investment at CAFL during the three and nine months ended September 30, 2024 and 2023.
Table 8.3 – Activity of Residential Investor Loans Held-for-Investment at CAFL
Three Months Ended 
 September 30, 2024		Three Months Ended September 30, 2023
(In Thousands)Term at
CAFL		Bridge at CAFLTerm at
CAFL		Bridge at CAFL
Net market valuation gains (losses) recorded (1)
$78,275 $1,623 $(1,360)$(2,560)
Fair value of loans transferred to HFI— 62,386 278,751 116,679 
Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
(In Thousands)Term at
CAFL		Bridge at CAFLTerm at
CAFL		Bridge at CAFL
Net market valuation gains (losses) recorded (1)
$89,388 $443 $(1,961)$(1,960)
Fair value of loans transferred to HFI— 250,319 278,751 337,657 
(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 CFE guidelines. We did not elect to account for two of our CAFL Bridge securitizations under the CFE guidelines but have elected to account for the loans in these securitizations at fair value, and changes in fair value for these loans are recorded through Investment fair value changes, net on our consolidated statements of income.
The following tables summarize the characteristics of the residential investor loans owned at Redwood and at consolidated CAFL entities at September 30, 2024 and December 31, 2023.
Table 8.4 – Characteristics of Residential Investor Loans
September 30, 2024Term at Redwood
Term at
CAFL(1)
Bridge at RedwoodBridge at CAFL
(Dollars in Thousands)
Unpaid principal balance$183,358 $2,790,755 $1,336,767 $600,267 
Average UPB of loans$2,108 $3,037 $5,161 $2,035 
Fair value of loans$174,485 $2,661,885 $1,302,474 $607,330 
Weighted average coupon6.88 %5.36 %9.14 %10.16 %
Weighted average remaining loan term (years)7411
Market value of loans pledged as collateral under debt facilities$133,022 N/A$1,250,392 N/A
Delinquency information
Unpaid principal balance of loans with 90+ day delinquencies (2)
$34,083 $161,874 $132,286 $24,993 
Average UPB of 90+ days delinquent loans (2)
$11,361 $3,948 $7,782 $1,785 
Fair value of loans with 90+ day delinquencies (2)
$19,320 N/A$113,904 N/A
Unpaid principal balance of loans in foreclosure (3)
$27,529 $18,646 $86,019 $13,426 
Average UPB of loans in foreclosure (3)
$27,529 $2,936 $7,820 $1,918 
Fair value of loans in foreclosure (3)
$13,250 N/A$72,212 N/A
December 31, 2023Term at Redwood
Term at
CAFL(1)
Bridge at RedwoodBridge at CAFL
(Dollars in Thousands)
Unpaid principal balance$152,213 $3,194,131 $1,360,957 $756,574 
Average UPB of loans$4,006 $3,028 $8,453 $2,162 
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 debt facilities$124,934 N/A$1,298,198 N/A
Delinquency information
Unpaid principal balance of loans with 90+ day delinquencies (2)
$28,263 $143,623 $96,934 $10,646 
Average UPB of 90+ days delinquent loans (2)
$14,132 $3,192 $5,702 $1,774 
Fair value of loans with 90+ day delinquencies (2)
$16,822 N/A$86,137 N/A
Unpaid principal balance of loans in foreclosure (3)
$28,263 $15,708 $79,841 $3,931 
Average UPB of loans in foreclosure (3)
$14,132 $2,244 $5,323 $1,310 
Fair value of loans in foreclosure (3)
$16,822 N/A$69,046 N/A
(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 the accounting guidance for CFEs.
(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 September 30, 2024 by collateral/strategy type.
Table 8.5 – Residential Investor Loans Collateral/Strategy Type
September 30, 2024Term at Redwood
Term at
CAFL(1)
Bridge at Redwood
Bridge at CAFL(1)
(Dollars in Thousands)
Term
Single family rental$85,307 $2,163,862 $— $— 
Multifamily98,051 626,893 — — 
Bridge
Renovate / Build for Rent ("BFR")(2)
— — 575,782 279,820 
Single Asset Bridge ("SAB")(3)
— — 90,678 171,489 
Multifamily(4)
— — 664,060 147,903 
Third-Party Originated— — 6,247 1,055 
Total Residential Investor Loans$183,358 $2,790,755 $1,336,767 $600,267 
(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 the accounting guidance for CFEs.
(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.
Schedule of Characteristics of Residential Consumer Loans Held-For-Sale
The following table summarizes the characteristics of residential consumer loans held-for-sale at September 30, 2024 and December 31, 2023.
Table 7.2 – Characteristics of Residential Consumer Loans Held-for-Sale
(Dollars in Thousands)September 30, 2024December 31, 2023
Unpaid principal balance$1,348,819 $916,877 
Fair value of loans$1,362,349 $911,192 
Market value of loans pledged as collateral under short-term borrowing agreements$1,350,551 $907,742 
Weighted average coupon6.63 %6.25 %
Schedule of Quarterly Activity of Residential Consumer Loans Held-for-Sale
The following table provides the activity of residential consumer loans held-for-sale during the three and nine months ended September 30, 2024 and 2023.
Table 7.3 – Activity of Residential Consumer Loans Held-for-Sale
Three Months Ended September 30,Nine Months Ended September 30,
(In Thousands)2024202320242023
Principal balance of loans acquired$1,999,621 $857,974 $4,873,608 $1,092,992 
Principal balance of loans sold39,497 53,743 246,641 235,821 
Principal balance of loans transferred from HFS to HFI1,528,163 337,752 4,140,150 995,047 
Net market valuation gains (losses) recorded (1)
11,047 (8,683)20,079 (2,590)
(1)Net market valuation gains (losses) on residential consumer loans held-for-sale are recorded primarily through Mortgage banking activities, net on our consolidated statements of income.
Schedule of Characteristics of Residential Consumer Loans Held-for-Investment The following tables summarize the characteristics of the residential consumer loans owned at consolidated Sequoia and Freddie Mac SLST entities at September 30, 2024 and December 31, 2023.
Table 7.4 – Characteristics of Residential Consumer Loans Held-for-Investment
September 30, 2024Freddie Mac
(Dollars in Thousands)SequoiaSLST
Unpaid principal balance$8,880,569 $1,538,972 
Average loan balance (UPB)$868 $156 
Fair value of loans (1)
$8,476,004 $1,318,806 
Weighted average coupon4.95 %4.50 %
Delinquency information
Unpaid principal balance of loans with 90+ day delinquencies (2)
$16,802 $103,379 
Average 90+ days delinquent balance (UPB)$525 $171 
Unpaid principal balance of loans in foreclosure$7,079 $39,790 
Average foreclosure balance (UPB)$442 $181 
December 31, 2023Freddie Mac
(Dollars in Thousands)SequoiaSLST
Unpaid principal balance$5,398,913 $1,614,974 
Average loan balance (UPB)$757 $157 
Fair value of loans (1)
$4,780,203 $1,359,242 
Weighted average coupon4.15 %4.50 %
Delinquency information
Unpaid principal balance of loans with 90+ day delinquencies (2)
$13,023 $132,307 
Average 90+ days delinquent balance (UPB)$482 $166 
Unpaid principal balance of loans in foreclosure$5,234 $47,654 
Average foreclosure balance (UPB)$436 $163 
Footnotes to Table 7.4
(1)The fair value of the loans held by consolidated entities was 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 the accounting guidance for collateralized financing entities.
(2)For loans held at consolidated entities, the number and unpaid principal balance of loans 90+ days delinquent includes loans in foreclosure.
Schedule of Quarterly Activity of Residential Consumer Loans Held-for-Investment The following table provides the activity of residential consumer loans held-for-investment at consolidated entities during the three and nine months ended September 30, 2024 and 2023.
Table 7.5 – Activity of Residential Consumer Loans Held-for-Investment at Consolidated Entities
Three Months Ended September 30, 2024Three Months Ended September 30, 2023
Freddie MacFreddie Mac
(In Thousands)SequoiaSLSTSequoiaSLST
Principal value of loans transferred from HFS to HFI (1)
$1,528,163 N/A$337,752 N/A
Net market valuation gains (losses) recorded256,034 53,555 (177,253)(51,046)
Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Freddie MacFreddie Mac
(In Thousands)SequoiaSLSTSequoiaSLST
Principal value of loans transferred from HFS to HFI (1)
$4,140,150 N/A$995,047 N/A
Net market valuation gains (losses) recorded152,635 38,154 (162,895)(62,756)
(1)Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations.