Debt Obligations, Net

3 Months Ended

Mar. 31, 2025

We enter into loan warehouse facilities, repurchase agreements ("repo"), recourse subordinate securities financings, and other forms of collateralized (and generally uncommitted) borrowings with several banks and major investment banking firms. We use debt to finance the acquisition and/or origination of residential consumer and residential investor mortgage loans (including those we acquire or originate in anticipation of sale or securitization), and to finance investments in securities and other investments. Additionally, we use corporate debt obligations to fund other aspects of our business and operations, including the repurchase of shares of our capital stock.

At March 31, 2025, we had outstanding agreements on debt obligations with several counterparties and we were in compliance with all of the related covenants. Refer to Note 3 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding these investments. Refer to Note 17 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding our debt obligations.

The following tables summarize our debt obligations at March 31, 2025 and December 31, 2024.

Table 18.1 – Debt Obligations, Net


	March 31, 2025
(Dollars in Thousands)	Number of Facilities or Issuances	Principal Amount		Carrying Value (1)		Facility Capacity		Weighted Average Interest Rate (2)		Final Stated Maturity	Carrying Value of Collateral

Short-Term Facilities:
Residential consumer loan warehouse facilities	8	$	1,210,265	$	1,210,265	$	2,875,000	6.13	%	5/2025-2/2026	$	1,289,721
Residential investor loan warehouse facilities	2	234,338		234,281		800,000		7.36	%	6/2025-7/2025	335,708
Real estate securities repurchase facilities	5	236,325		236,325		—		5.51	%	4/2025-6/2025	314,108
Residential MSR warehouse facility	1	68,274		68,274		75,000		7.57	%	10/2025	139,720
HEI warehouse facility	1	91,777		91,777		150,000		8.82	%	12/2025	207,778

Recourse Subordinate Securities Financing:
CAFL securities (3)	1	267,010		266,013		N/A		7.54	%	9/2028	319,926

Long-Term Facilities:
Residential investor loan warehouse facilities	5	554,322		552,610		1,530,000		7.77	%	5/2026-4/2027	865,171
Servicer advance financing	1	161,907		161,174		200,000		6.27	%	12/2026	229,708
Secured revolving financing facility (4)	1	200,000		196,187		250,000		9.30	%	3/2026	302,815

Corporate Debt:
Promissory notes (3) (5)	3	11,619		11,619		—		7.07	%	N/A	—
5.75% exchangeable senior notes (3)	1	123,574		123,309		N/A		5.75	%	10/2025	N/A
7.75% convertible senior notes (3)	1	247,170		243,065		N/A		7.75	%	6/2027	N/A
Trust preferred securities and subordinated notes	2	139,500		138,871		N/A		6.80	%	1/2037, 7/2037	N/A
9.125% Senior Notes (3)	1	60,000		57,980		N/A		9.13	%	3/2029	N/A
9.0% Senior Notes (3)	1	85,000		82,235		N/A		9.00	%	9/2029	N/A
9.125% Senior Notes (3)	1	90,000		86,700		N/A		9.13	%	3/2030	N/A
Total Debt Obligations		$	3,781,081	$	3,760,685						$	4,004,655


	December 31, 2024
(Dollars in Thousands)	Number of Facilities or Issuances	Principal Amount		Carrying Value (1)		Facility Capacity		Weighted Average Interest Rate (2)		Final Stated Maturity	Carrying Value of Collateral
Short-Term Facilities:
Residential consumer loan warehouse facilities	7	$	956,010	$	956,010	$	2,175,000	6.24	%	3/2025-10/2025	$	1,005,926
Residential investor loan warehouse facilities	2	223,975		223,876		800,000		7.31	%	6/2025-7/2025	300,843
Real estate securities repurchase facilities	6	210,352		210,352		—		5.81	%	1/2025-3/2025	281,997
Residential MSR warehouse facility	1	58,164		58,164		75,000		7.65	%	10/2025	91,506
HEI warehouse facility	1	97,497		97,497		150,000		9.00	%	12/2025	207,097

Recourse Subordinate Securities Financings:
CAFL securities (3)	1	268,240		267,140		N/A		7.54	%	9/2028	318,106

Long Term Facilities:
Residential investor loan warehouse facilities	5	615,036		613,129		1,530,000		7.83	%	5/2026-4/2027	889,901
Servicer advance financing	1	159,798		159,031		200,000		6.32	%	12/2026	233,820
Secured revolving financing facility (4)	1	225,000		220,234		250,000		9.50	%	3/2026	372,396

Corporate Debt:
Promissory notes (3) (5)	3	12,859		12,859		—		7.06	%	N/A	—
5.75% exchangeable senior notes (3)	1	123,574		123,087		N/A		5.75	%	10/2025	N/A
7.75% convertible senior notes (3)	1	247,170		242,652		N/A		7.75	%	6/2027	N/A
Trust preferred securities and subordinated notes	2	139,500		138,860		N/A		7.10	%	1/2037, 7/2037	N/A
9.125% Senior Notes (3)	1	60,000		57,877		N/A		9.13	%	3/2029	N/A
9.0% Senior Notes (3)	1	85,000		82,112		N/A		9.00	%	9/2029	N/A
Total Debt Obligations		$	3,482,175	$	3,462,880						$	3,701,592

(1)Carrying value presented net of total deferred issuance costs of $20 million at both March 31, 2025 and December 31, 2024.

(2)Variable rate borrowings are based on 1- or 3-month SOFR, plus an applicable spread.

(3)Borrowing has a fixed interest rate at period end.

(4)Facility may be extended for one year at our option.

(5)Promissory notes payable on demand to lender with 90-day notice.

In January 2025, Redwood issued $90 million of 9.125% Senior Notes due in 2030. The Senior Notes are senior unsecured obligations of Redwood and bear interest at a rate equal to 9.125% per year, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year, beginning on June 1, 2025. The Senior Notes mature on March 1, 2030. We may redeem the Senior Notes, in whole or in part, at any time on or after March 1, 2027 at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest.