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Residential Consumer Loans (Tables)
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Schedule of Classifications and Carrying Value of Residential Consumer Loans
The following table summarizes the classifications and carrying values of the securitized and unsecuritized residential consumer loans owned at March 31, 2025 and December 31, 2024.
Table 7.1 – Classifications and Carrying Values of Residential Consumer Loans
March 31, 2025Unsecuritized Jumbo LoansSecuritized Jumbo LoansSecuritized Re-Performing Loans
(In Thousands)Total
Held-for-sale at fair value$1,294,290 $— $— $1,294,290 
Held-for-investment at fair value— 10,176,418 1,281,550 11,457,968 
Total Residential Consumer Loans$1,294,290 $10,176,418 $1,281,550 $12,752,258 
December 31, 2024Unsecuritized Jumbo LoansSecuritized Jumbo LoansSecuritized Re-Performing Loans
(In Thousands)Total
Held-for-sale at fair value$1,013,547 $— $— $1,013,547 
Held-for-investment at fair value— 8,819,554 1,244,722 10,064,276 
Total Residential Consumer Loans$1,013,547 $8,819,554 $1,244,722 $11,077,823 
The following table summarizes the classifications and carrying values of the securitized and unsecuritized residential investor loans at March 31, 2025 and December 31, 2024.
Table 8.1 – Classifications and Carrying Values of Residential Investor Loans
March 31, 2025Residential Investor TermResidential Investor Bridge
(In Thousands)UnsecuritizedSecuritizedUnsecuritizedSecuritizedTotal
Held-for-sale at fair value$169,372 $— $72,053 $— $241,425 
Held-for-investment at fair value— 2,389,804 1,039,223 769,382 4,198,409 
Total Residential Investor Loans$169,372 $2,389,804 $1,111,276 $769,382 $4,439,834 
December 31, 2024Residential Investor TermResidential Investor Bridge
(In Thousands)UnsecuritizedSecuritizedUnsecuritizedSecuritizedTotal
Held-for-sale at fair value$158,637 $— $78,587 $— $237,224 
Held-for-investment at fair value— 2,485,069 1,041,694 823,103 4,349,866 
Total Residential Investor Loans$158,637 $2,485,069 $1,120,281 $823,103 $4,587,090 
The following table provides the activity of unsecuritized residential investor loans during the three months ended March 31, 2025 and 2024.
Table 8.2 – Activity of Unsecuritized Residential Investor Loans
Three Months Ended 
 March 31, 2025		Three Months Ended 
 March 31, 2024
(In Thousands)Unsecuritized Term LoansUnsecuritized Bridge LoansUnsecuritized Term LoansUnsecuritized Bridge Loans
Principal balance of loans originated$188,218 $266,144 $117,090 $194,029 
Principal balance of loans acquired6,800 — — 15,677 
Principal balance of loans sold to third parties (1)
182,415 156,493 6,032 53,221 
Transfer of loans between portfolios (2)
— (50,619)— (98,731)
Footnotes to table 8.2
(1)For the three months ended March 31, 2025 and 2024 the principal balance of loans sold to third parties is net of $16 million and $15 million, respectively, related to construction draws on residential investor bridge loans sold to our joint ventures. See Note 12 for additional information on these joint ventures.
(2)Transfers of unsecuritized residential investor term loans between portfolios represents the transfer of loans from held-for-sale to held-for-investment associated with consolidated term securitizations. Transfers of unsecuritized residential investor bridge loans, represents the transfer of residential investor bridge loans from "Unsecuritized Bridge" to "Securitized Bridge" 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 Redwood Investments portfolio. See Table 5.1 for additional detail on Mortgage banking activities income.
The following table provides the activity of securitized residential investor loans held-for-investment during the three months ended March 31, 2025 and 2024.
Table 8.3 – Activity of Securitized Residential Investor Loans Held-for-Investment
Three Months Ended March 31, 2025Three Months Ended March 31, 2024
(In Thousands)Securitized TermSecuritized BridgeSecuritized TermSecuritized Bridge
Net market valuation gains (losses) recorded (1)
$(69)$(3,694)$7,583 $3,690 
Fair value of loans transferred to HFI— 50,619 — 98,731 
(1)Net market valuation gains (losses) on securitized residential investor loans held-for-investment are recorded through Investment fair value changes, net on our consolidated statements of income. For loans held at our consolidated Term entities and two Bridge entities, 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 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 securitized and unsecuritized residential investor loans at March 31, 2025 and December 31, 2024.
Table 8.4 – Characteristics of Residential Investor Loans
March 31, 2025Unsecuritized Term
Securitized Term(1)
Unsecuritized Bridge
Securitized Bridge(1)
(Dollars in Thousands)
Unpaid principal balance$187,001 $2,539,929 $1,172,533 $759,903 
Average UPB of loans1,989 3,140 5,479 1,692 
Fair value of loans169,372 2,389,804 1,111,276 769,382 
Weighted average coupon6.77 %5.35 %9.14 %9.55 %
Weighted average remaining loan term (years)10411
Market value of loans pledged as collateral under debt facilities$110,136 N/A$1,090,743 N/A
Delinquency information
Unpaid principal balance of loans with 90+ day delinquencies (2)
$39,865 $212,275 $243,288 $29,083 
Average UPB of 90+ days delinquent loans (2)
7,973 4,332 13,516 1,531 
Fair value of loans with 90+ day delinquencies (2)
18,469 N/A202,982 N/A
Unpaid principal balance of loans in foreclosure (3)
— 59,449 38,225 9,703 
Average UPB of loans in foreclosure (3)
— 4,246 4,247 1,078 
Fair value of loans in foreclosure (3)
— N/A27,257 N/A
December 31, 2024Unsecuritized Term
Securitized Term(1)
Unsecuritized Bridge
Securitized Bridge(1)
(Dollars in Thousands)
Unpaid principal balance$177,618 $2,639,485 $1,166,213 $810,285 
Average UPB of loans1,759 3,084 5,350 1,605 
Fair value of loans158,637 2,485,069 1,120,281 823,103 
Weighted average coupon6.84 %5.35 %9.11 %9.76 %
Weighted average remaining loan term (years)9411
Market value of loans pledged as collateral under debt facilities$120,417 N/A$1,070,327 N/A
Delinquency information
Unpaid principal balance of loans with 90+ day delinquencies (2)
$33,065 $194,143 $129,229 $20,964 
Average UPB of 90+ days delinquent loans (2)
8,266 3,734 8,077 1,233 
Fair value of loans with 90+ day delinquencies (2)
12,366 N/A102,321 N/A
Unpaid principal balance of loans in foreclosure (3)
27,529 24,648 86,260 3,663 
Average UPB of loans in foreclosure (3)
27,529 2,465 6,635 916 
Fair value of loans in foreclosure (3)
8,500 N/A67,858 N/A
(1)The fair value of the Term and Bridge loans held by consolidated entities 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 and loans where foreclosure is being pursued as a disposition strategy.
The following table presents the unpaid principal balance of residential investor loans recorded on our consolidated balance sheets at March 31, 2025 by collateral/strategy type.
Table 8.5 – Residential Investor Loans Collateral/Strategy Type
March 31, 2025Unsecuritized TermSecuritized TermUnsecuritized BridgeSecuritized Bridge
(Dollars in Thousands)
Term
Single family rental$117,294 $1,957,782 $— $— 
Multifamily69,707 582,147 — — 
Bridge
Renovate / Build for Rent ("BFR") (1)
— — 439,189 339,864 
Single Asset Bridge ("SAB") (2)
— — 82,258 274,715 
Multifamily (3)
— — 644,838 144,270 
Third-Party Originated— — 6,248 1,054 
Total Residential Investor Loans$187,001 $2,539,929 $1,172,533 $759,903 
(1)Includes loans to finance acquisition and/or stabilization of existing housing stock or to finance new construction of residential properties for rent.
(2)Includes loans for light to moderate renovation of residential and small multifamily properties (generally less than 20 units).
(3)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 March 31, 2025 and December 31, 2024.
Table 7.2 – Characteristics of Residential Consumer Loans Held-for-Sale
(Dollars in Thousands)March 31, 2025December 31, 2024
Unpaid principal balance ("UPB")$1,273,940 $1,000,663 
Fair value of loans$1,294,290 $1,013,547 
Market value of loans pledged as collateral under short-term borrowing agreements$1,289,721 $1,005,926 
Weighted average coupon6.69 %6.56 %
Schedule of Activity of Residential Consumer Loans Held-for-Sale
The following table provides the activity of residential consumer loans held-for-sale during the three months ended March 31, 2025 and 2024.
Table 7.3 – Activity of Residential Consumer Loans Held-for-Sale
Three Months Ended March 31,
(In Thousands)20252024
Principal balance of loans acquired$2,337,185 $999,786 
Principal balance of loans sold420,513 201,581 
Principal balance of loans transferred from HFS to HFI1,623,900 1,187,961 
Schedule of Characteristics of Residential Consumer Loans Held-for-Investment
We invest in residential subordinate securities issued by Securitized Jumbo and Securitized Re-Performing Loans securitization trusts and consolidate the underlying residential consumer loans owned by these entities for financial reporting purposes in accordance with GAAP. The following tables summarize the characteristics of the securitized jumbo and re-performing residential consumer loans at March 31, 2025 and December 31, 2024.
Table 7.4 – Characteristics of Residential Consumer Loans Held-for-Investment
March 31, 2025Securitized Jumbo LoansSecuritized Re-Performing Loans
(Dollars in Thousands)
UPB$10,590,674 $1,493,348 
Average loan balance (UPB)$871 $155 
Fair value of loans (1)
$10,176,418 $1,281,550 
Weighted average coupon5.19 %4.49 %
Delinquency information
Unpaid principal balance of loans with 90+ day delinquencies (2)
$25,541 $93,302 
Average 90+ days delinquent balance (UPB)$672 $173 
Unpaid principal balance of loans in foreclosure$11,329 $37,180 
Average foreclosure balance (UPB)$566 $183 
December 31, 2024Securitized Jumbo LoansSecuritized Re-Performing Loans
(Dollars in Thousands)
UPB$9,350,286 $1,514,432 
Average loan balance (UPB)$842 $155 
Fair value of loans (1)
$8,819,554 $1,244,722 
Weighted average coupon5.35 %4.49 %
Delinquency information
Unpaid principal balance of loans with 90+ day delinquencies (2)
$19,480 $106,910 
Average 90+ days delinquent balance (UPB)$573 $172 
Unpaid principal balance of loans in foreclosure$10,493 $41,913 
Average foreclosure balance (UPB)$552 $185 
(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 CFEs.
(2)For loans held at consolidated entities, the number and unpaid principal balance of loans 90+ days delinquent includes loans in foreclosure.
Schedule of Activity of Residential Consumer Loans Held-for-Investment at Consolidated Entities
The following table provides the activity of securitized jumbo and re-performing residential consumer loans held-for-investment during the three months ended March 31, 2025 and 2024.
Table 7.5 – Activity of Residential Consumer Loans Held-for-Investment
Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Securitized Jumbo LoansSecuritized Re-Performing LoansSecuritized Jumbo LoansSecuritized Re-Performing Loans
(In Thousands)
Principal value of loans transferred from HFS to HFI (1)
$1,623,900 N/A$1,187,961 N/A
Net market valuation gains (losses) recorded81,684 58,594 (54,808)(4,231)
(1)Represents the transfer of loans from held-for-sale to held-for-investment associated with jumbo securitization.