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Other Assets and Liabilities | 9 Months Ended
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Sep. 30, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] |
Other Assets and Liabilities | Other Assets and Liabilities Other Assets Other assets at September 30, 2025 and December 31, 2024 are summarized in the following table. Table 15.1 – Components of Other Assets
(In Thousands) |  | September 30, 2025 |  | December 31, 2024
Accrued interest receivable |  | $ | 123,213 |  |  | $ | 115,832 |
Margin receivable |  | 73,082 |  |  | 28,313 |
Investment receivable |  | 58,468 |  |  | 69,793 |
Real estate owned |  | 47,731 |  |  | 91,927 |
Deferred tax asset |  | 27,145 |  |  | 27,145 |
Intangible assets |  | 12,634 |  |  | 19,049 |
Operating lease right-of-use assets |  | 9,736 |  |  | 9,167 |
Fixed assets and leasehold improvements (1) |  | 5,807 |  |  | 4,674 |
Other (2) |  | 40,672 |  |  | 49,817 |
Total Other Assets |  | $ | 398,488 |  |  | $ | 415,717 |
(1)Fixed assets and leasehold improvements had a basis of $20 million and accumulated depreciation of $14 million at September 30, 2025. (2)Consists primarily of receivables related to escrow advances, prepaid assets and other receivables. Real Estate Owned (REO) 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 consolidated securitization entities during the three and nine months ended September 30, 2025. Table 15.2 – REO Activity
|  | Three Months Ended September 30, 2025
(In Thousands) |  | Bridge (1) |  | Sequoia |  | Securitized Re-Performing Loans |  | Securitized Term |  | Total
Balance at beginning of period |  | $ | 59,838 |  |  | $ | 1,984 |  |  | $ | 2,771 |  |  | $ | 7,747 |  |  | $ | 72,340 |
Transfers to REO |  | 41,034 |  |  | — |  |  | 361 |  |  | — |  |  | 41,395 |
Liquidations (2) |  | (59,224) |  |  | — |  |  | (1,036) |  |  | — |  |  | (60,260) |
Changes in fair value, net |  | (5,920) |  |  | — |  |  | 176 |  |  | — |  |  | (5,744) |
Balance at End of Period |  | $ | 35,728 |  |  | $ | 1,984 |  |  | $ | 2,272 |  |  | $ | 7,747 |  |  | $ | 47,731 |
|  | Nine Months Ended September 30, 2025
(In Thousands) |  | Bridge (1) |  | Sequoia |  | Securitized Re-Performing Loans |  | Securitized Term |  | Total
Balance at beginning of period |  | $ | 77,678 |  |  | $ | — |  |  | $ | 2,987 |  |  | $ | 11,262 |  |  | $ | 91,927 |
Transfers to REO |  | 53,104 |  |  | 1,984 |  |  | 2,449 |  |  | — |  |  | 57,537 |
Liquidations (2) |  | (67,012) |  |  | — |  |  | (4,070) |  |  | (3,515) |  |  | (74,597) |
Changes in fair value, net |  | (28,042) |  |  | — |  |  | 906 |  |  | — |  |  | (27,136) |
Balance at End of Period |  | $ | 35,728 |  |  | $ | 1,984 |  |  | $ | 2,272 |  |  | $ | 7,747 |  |  | $ | 47,731 |
(1)Includes REO that were previously either legacy unsecuritized bridge loans or bridge loans within consolidated securitization entities. (2)For the three and nine months ended September 30, 2025, REO market valuation adjustments and liquidations resulted in net valuation losses of $6 million and $27 million, respectively, which were recorded in Investment fair value changes, net on our consolidated statements of income. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities at September 30, 2025 and December 31, 2024 are summarized in the following table. Table 15.3 – Components of Accrued Expenses and Other Liabilities
(In Thousands) |  | September 30, 2025 |  | December 31, 2024
Payable to non-controlling interests |  | $ | 101,888 |  |  | $ | 123,258 |
Accrued interest payable |  | 91,971 |  |  | 70,988 |
Accrued compensation |  | 34,235 |  |  | 34,002 |
Margin payable |  | 31,844 |  |  | 20,340 |
Unsettled trades |  | 19,322 |  |  | 5,127 |
Accrued taxes payable |  | 13,518 |  |  | — |
Accrued operating expenses |  | 12,668 |  |  | 11,074 |
Operating lease liabilities |  | 11,600 |  |  | 11,028 |
Current accounts payable |  | 10,842 |  |  | 6,803 |
Repurchase reserve |  | 4,442 |  |  | 4,727 |
Guarantee obligations |  | 1,660 |  |  | 2,806 |
Preferred stock dividends payable |  | 1,478 |  |  | 1,478 |
Bridge loan holdbacks (1) |  | 2,041 |  |  | 2,148 |
Other |  | 25,517 |  |  | 19,958 |
Total Accrued Expenses and Other Liabilities |  | $ | 363,026 |  |  | $ | 313,737 |
(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. Legal and Repurchase Reserves See Note 19 for additional information on legal and repurchase reserves. Payable to Non-Controlling Interests 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 16 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 September 30, 2025, 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 three and nine months ended September 30, 2025, we allocated $0.4 million and $0.8 million, respectively, of income to the co-investors, respectively, recorded in Other expenses on our consolidated statements of income. Additionally, 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. During the three months ending September 30, 2025, we called one of the HEI securitization entities and paid the remaining liabilities associated with the ABS and non-controlling interest. See Note 10 for a further discussion of the HEI securitizations. We account for the co-investor's interest in our HEI securitization entity as a liability, and at September 30, 2025, the carrying value of the interest was $44 million, representing the fair value of the economic interest in the beneficial interests issued by the HEI entity. During the three and nine months ended September 30, 2025, the third-party investors' share of earnings, net from their retained interests was $0.2 million and $8 million, respectively, recorded through HEI income, net on our consolidated statements of income. During the nine months ended September 30, 2025, 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 September 30, 2025, the carrying value of their interest was $17 million, representing the fair value of their economic interest in the beneficial interest issued. During the three and nine months ended September 30, 2025, 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 negative $2 million and $10 million, respectively, net on our consolidated statements of income (loss). In 2024, we completed a CAFL securitization of bridge loans sponsored by one of our joint ventures. 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 September 30, 2025, the carrying value of their interest was $17 million, representing the fair value of their economic interest in the beneficial interest issued. During the three and nine months ended September 30, 2025, 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 negative $1 million and $4 million, respectively, on our consolidated statements of income (loss).

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