Table 14.1 – Components of Other Assets


(In Thousands)	December 31, 2024		December 31, 2023
Accrued interest receivable	$	115,832	$	69,072
Real estate owned	91,927		93,599
Investment receivable	69,793		67,302
Deferred tax asset	27,145		40,115
Margin receivable	28,313		33,414
Intangible assets	19,049		28,462
Operating lease right-of-use assets	9,167		12,532
Fixed assets and leasehold improvements (1)	4,674		7,829
Other	49,817		27,246
Total Other Assets	$	415,717	$	379,571

The Company holds REO at the lower of the current carrying amount or fair value less estimated selling costs. The following table summarizes the activity and carrying values of REO assets held at Redwood and at consolidated Sequoia, Freddie Mac SLST, and CAFL entities during the years ended December 31, 2024 and 2023.

Table 14.2 – REO Activity


	Year Ended December 31, 2024
(In Thousands)	Bridge (1)		Sequoia		Freddie Mac SLST		Term at CAFL		Total
Balance at beginning of year	$	87,757	$	—	$	3,158	$	2,684	$	93,599
Transfers to REO	11,085		—		2,887		8,582		22,554
Liquidations (2)	(4,953)		—		(3,557)		(4)		(8,514)
Changes in fair value, net (2)	(16,211)		—		499		—		(15,712)
Balance at End of Year	$	77,678	$	—	$	2,987	$	11,262	$	91,927


	Year Ended December 31, 2023
(In Thousands)	Bridge (1)		Sequoia		Freddie Mac SLST		Term at CAFL		Total
Balance at beginning of year	$	3,012	$	544	$	2,899	$	—	$	6,455
Transfers to REO	94,022		18		3,556		2,684		100,280
Liquidations (2)	(6,752)		(562)		(3,577)		—		(10,891)
Changes in fair value, net (2)	(2,525)		—		280		—		(2,245)
Balance at End of Year	$	87,757	$	—	$	3,158	$	2,684	$	93,599

(2)For the years ended December 31, 2024 and 2023, REO market valuation adjustments and liquidations resulted in net valuation losses of $16 million and $2 million, respectively, which were recorded in Investment fair value changes, net on our consolidated statements of income.

Table 14.3 – Intangible Assets – Activity


	Intangible Assets at Acquisition		Accumulated Amortization at December 31, 2024		Carrying Value at December 31, 2024		Weighted Average Amortization Period (in years)
(Dollars in Thousands)
Borrower network	$	56,300	$	(37,635)	$	18,665	7
Broker network	18,100		(18,100)		—		5
Non-compete agreements	11,400		(11,083)		317		3
Tradenames	4,400		(4,333)		67		3
Developed technology	1,800		(1,800)		—		2
Loan administration fees on existing loan assets	2,600		(2,600)		—		1
Total	$	94,600	$	(75,551)	$	19,049	6


	Intangible Assets at Acquisition		Accumulated Amortization at December 31, 2023		Carrying Value at December 31, 2023		Weighted Average Amortization Period (in years)
(Dollars in Thousands)
Borrower network	$	56,300	$	(29,591)	$	26,709	7
Broker network	18,100		(17,497)		603		5
Non-compete agreements	11,400		(10,450)		950		3
Tradenames	4,400		(4,200)		200		3
Developed technology	1,800		(1,800)		—		2
Loan administration fees on existing loan assets	2,600		(2,600)		—		1
Total	$	94,600	$	(66,138)	$	28,462	6

All of our intangible assets are amortized on a straight-line basis. For the years ended December 31, 2024 and 2023, we recorded intangible asset amortization expense of $9 million and $12 million, respectively. Estimated future amortization expense is summarized in the table below.

On at least an annual basis, we evaluate our finite-lived intangible assets for impairment indicators and additionally evaluate the useful lives of our intangible assets to determine if revisions to the remaining periods of amortization are warranted. We reviewed our finite-lived intangible assets and determined that the estimated lives were appropriate and that there were no indicators of impairment at December 31, 2024.

Table 14.5 – Components of Accrued Expenses and Other Liabilities


(In Thousands)	December 31, 2024		December 31, 2023
Payable to non-controlling interests	$	123,258	$	81,177
Margin payable	20,340		350
Accrued interest payable	70,988		52,755
Accrued compensation	34,002		28,140
Operating lease liabilities	11,028		14,725
Accrued operating expenses	11,074		5,527

Current accounts payable	6,803		4,992
Unsettled trades	5,127		—
Guarantee obligations	2,806		5,781
Repurchase reserve	4,727		4,700
Bridge loan holdbacks (1)	2,148		2,059
Preferred stock dividends payable	1,478		1,478
Other	19,958		15,119
Total Accrued Expenses and Other Liabilities	$	313,737	$	216,803

(1)Bridge loan holdbacks represent amounts withheld from the initial loan proceeds and are subsequently disbursed to the borrower to be used in the construction, rehabilitation or purchase of the mortgaged property or to fund interest on the bridge loan.

Investment receivable primarily consists of amounts receivable from third-party servicers related to principal and interest receivable from residential investor loans and fees receivable from servicer advance investments.

Margin receivable and payable resulted from margin calls between us and our counterparties under derivatives, master repurchase agreements, and warehouse facilities, whereby we or the counterparty posted collateral. Through December 31, 2024, we had met all margin calls due.

Operating lease liabilities are equal to the present value of our remaining lease payments discounted at our incremental borrowing rate and the operating lease right-of-use assets are equal to the operating lease liabilities adjusted for our deferred rent liabilities. These balances are reduced as lease payments are made. See Note 18 for additional information on leases.

Redwood and a third-party co-investor, through two partnership entities consolidated by Redwood, purchased servicer advances and excess MSRs related to a portfolio of residential mortgage loans serviced by the co-investor (see Note 11 and Note 15 for additional information on the partnership entities and associated investments). We account for the co-investor’s interests in the entities as liabilities and at December 31, 2024, the carrying value of their interests was $24 million, representing their current economic interest in the entities. Earnings from the partnership entities are allocated to the co-investors on a proportional basis and during the years ended December 31, 2024, 2023, and 2022 we allocated $5 million of income, $6 million of income, and $2 million of income, respectively, to the co-investors, which were recorded in Other expenses on our consolidated statements of income (loss).

Redwood and a third-party investor co-sponsored the transfer and securitization of HEI through two HEI securitization entities. Other third-party investors contributed HEI into these securitizations through Redwood and retained subordinate beneficial interests issued by the securitization entities alongside Redwood. See Note 10 for a further discussion of the HEI securitizations. We account for the co-investors' interests in the HEI securitization entities as liabilities and at December 31, 2024, the carrying value of their interests was $83 million, representing the fair value of their economic interests in the beneficial interests issued by the HEI entities. During the years ended December 31, 2024, 2023 and 2022, the investors' share of earnings from their retained interests (for which positive earnings are reflected as an expense to Redwood in our consolidated statements of income) were positive $23 million, positive $8 million, and positive $5 million, respectively, and were recorded through HEI Income, net on our consolidated statements of income (loss).

In 2024, we completed a CAFL securitization of bridge loans sponsored by our joint venture. This transaction involved the transfer and securitization of bridge loans contributed from the joint venture and from Redwood through one bridge securitization entity. Each of the joint venture and Redwood retained its proportionate share of subordinate beneficial interests issued by the securitization entity. We account for the joint venture's interest in the bridge loan securitization entity as a liability and at December 31, 2024, the carrying value of their interest was $17 million, representing the fair value of their economic interest in the beneficial interest issued. During the year ended December 31, 2024, the joint venture's share of earnings from their retained interest (for which positive earnings are reflected as an expense to Redwood in our consolidated statements of income) were positive $5 million and were recorded through Investment fair value changes, net on our consolidated statements of income (loss).

Accrued compensation includes costs related to our cash-settled awards, bonuses, deferred compensation, vacation and commissions. Our cash-settled awards were granted to certain executive officers and non-executive employees. These awards will be payable in cash with a vested award value based on the closing market price of our common stock on their respective final vesting dates. These awards are classified as liabilities in Accrued expenses and other liabilities on our consolidated balance sheets, and are being amortized over their respective vesting periods on a straight-line basis, adjusted for changes in the value of our common stock at the end of each reporting period.

Table 14.6 – Activities of Cash Settled Awards by Award Type


	Year Ended December 31, 2024
(In Thousands)	Cash-Settled Restricted Stock Units		Cash-Settled Deferred Stock Units		Cash-Settled Performance Stock Units		Total
Cash-settled award liability at December 31, 2023	$	83	$	3,590	$	1,550	$	5,223
Compensation expense	1,040		1,282		766		3,088
Cash-settled award vesting payout	(955)		(1,978)		—		(2,933)
Cash-settled award liability at December 31, 2024	$	168	$	2,894	$	2,316	$	5,378

During the year ended December 31, 2024, $5 million of csRSUs were granted to certain executive officers that will vest over the next four years through 2028. On each vesting date over the four-year vesting period, cash in an amount equal to the value of the common stock underlying the csRSUs that vest on such vesting date will be distributed to the recipients. At December 31, 2024 the unamortized compensation cost of the csRSUs was $7 million.

During the years ended December 31, 2022 and 2021, $3 million and $4 million of csDSUs, respectively, were granted to certain executive officers and non-executive employees that vest over four-year periods through 2026. At December 31, 2024 the unamortized compensation cost of the csDSUs was $2 million.

During the year ended December 31, 2023, $6 million of csPSUs were granted to certain executive and non-executive employees which vest over approximately three years through January 1, 2026. The target number of csPSUs that were granted totaled 663,499 units based on a per unit grant-date fair value of $9.75. The equivalent number of underlying shares of common stock that vest and that the recipient becomes entitled to receive at the time of vesting will generally range from 0% to 250% of the target number of csPSUs granted, with the target number of csPSUs granted being adjusted to reflect the value of any dividends declared on our common stock during the vesting period. At December 31, 2024 the unamortized compensation cost of the csPSUs was $1 million.