XML 58 R47.htm IDEA: XBRL DOCUMENT v3.25.3

Principles of Consolidation (Tables)

9 Months Ended

Sep. 30, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Assets and Liabilities of Consolidated VIEs

The following table presents a summary of the assets and liabilities of our consolidated VIEs at September 30, 2025 and December 31, 2024.

Table 16.1 – Assets and Liabilities of Consolidated VIEs

September 30, 2025												Sequoia (2)						CAFL(1)						Freddie Mac SLST(1) (5)						Freddie Mac K-Series (3)						Servicing Investment						HEI (4)						Total Consolidated VIEs
(Dollars in Thousands)
Residential consumer loans, held-for-investment												$	13,079,487					$	—					$	1,248,236					$	—					$	—					$	—					$	14,327,723
Residential investor loans, held-for-investment												—						3,074,326						—						—						—						—						3,074,326
Consolidated Agency multifamily loans												—						—						—						—						—						—						—
Real estate securities												187,446						—						—						—						—						—						187,446
Home equity investments												—						—						—						—						—						192,067						192,067
Other investments												—						—						—						—						247,842						—						247,842
Cash and cash equivalents												—						—						—						—						26,379						—						26,379
Restricted cash												265						68,470						—						—						—						4,646						73,381
Accrued interest receivable												66,334						21,809						4,300						—						1,951						—						94,394
Other assets												1,984						53,533						2,272						—						2,508						278						60,575
Total Assets												$	13,335,516					$	3,218,138					$	1,254,808					$	—					$	278,680					$	196,991					$	18,284,133
Debt Obligations												$	—					$	—					$	—					$	—					$	151,024					$	—					$	151,024
Accrued interest payable												52,967						8,259						3,773						—						248						—						65,247
Accrued expenses and other liabilities												121						47,100						—						—						32,255						44,045						123,521
Asset-backed securities issued												12,863,482						2,714,391						1,119,578						—						—						127,568						16,825,019
Total Liabilities												$	12,916,570					$	2,769,750					$	1,123,351					$	—					$	183,527					$	171,613					$	17,164,811
Value of our investments in VIEs (1)												$	405,506					$	446,511					$	130,929					$	—					$	95,153					$	25,378					$	1,103,477
Number of VIEs												67						22						3						—						3						1						96

December 31, 2024												Sequoia (2)						CAFL (1)						Freddie Mac SLST(1)						Freddie Mac K-Series						Servicing Investment						HEI						Total Consolidated VIEs
(Dollars in Thousands)
Residential consumer loans, held-for-investment												$	8,819,554					$	—					$	1,244,722					$	—					$	—					$	—					$	10,064,276
Residential investor loans, held-for-investment												—						3,308,172						—						—						—						—						3,308,172
Consolidated Agency multifamily loans												—						—						—						424,597						—						—						424,597
Real estate securities												79,285						—						—						—						—						—						79,285
Home equity investments												—						—						—						—						—						332,470						332,470
Other investments												—						—						—						—						262,353						—						262,353
Cash and cash equivalents												—						—						—						—						13,243						—						13,243
Restricted cash												248						22,385						—						—						—						8,403						31,036
Accrued interest receivable												43,503						19,998						4,510						1,245						2,078						—						71,334
Other assets												7						60,859						2,987						—						3,870						453						68,176
Total Assets												$	8,942,597					$	3,411,414					$	1,252,219					$	425,842					$	281,544					$	341,326					$	14,654,942
Debt Obligation												$	—					$	—					$	—					$	—					$	159,031					$	—					$	159,031
Accrued interest payable												37,191						9,410						4,062						1,119						359						—						52,141
Accrued expenses and other liabilities												103						28,672						—						—						27,167						82,921						138,863
Asset-backed securities issued												8,585,077						2,932,749						1,151,847						389,434						—						211,097						13,270,204
Total Liabilities												$	8,622,371					$	2,970,831					$	1,155,909					$	390,553					$	186,557					$	294,018					$	13,620,239
Value of our investments in VIEs (1)												$	313,833					$	438,590					$	95,863					$	35,163					$	94,987					$	47,308					$	1,025,744
Number of VIEs												54						21						3						1						3						2						84

Footnotes to table 16.1

(1)The value of our investments in VIEs, as presented in this table, generally represents the fair value of the economic interests we own in VIEs (i.e., the securities or other interests we legally own in the consolidated securitizations or other VIEs). While most of our VIEs are accounted for under the CFE election (whereby the net equity in the VIE generally represents the fair value of our retained interests and associated accrued interest receivable), certain entities, including two CAFL bridge loan securitizations (included within the CAFL column), our SLST re-securitization (included within the Freddie Mac SLST column), and our Servicing Investment VIEs are not accounted for under the CFE election and their associated ABS issued are accounted for at amortized historical cost. At September 30, 2025 and December 31, 2024, the fair value of our interests in the CAFL term loan securitizations accounted for under the CFE election were $333 million and $326 million, respectively. At September 30, 2025 and December 31, 2024, the fair value of our interest in the CAFL bridge loan securitizations accounted for under the CFE election was $40 million and $29 million, respectively, with the difference from the tables above generally representing ABS issued and carried at amortized historical cost and accrued interest on our economic interests. At September 30, 2025 and December 31, 2024, the fair value of our interests in the Freddie Mac SLST securitizations accounted for under the CFE election were $254 million and $242 million, respectively, with the difference from the tables above representing ABS issued and carried at amortized historical cost.

(2)Additionally, the ABS from three and one Sequoia re-securitizations at September 30, 2025 and December 31, 2024, respectively, are not accounted for under the CFE election and are accounted for at fair value (included within the Sequoia column at September 30, 2025 and December 31, 2024). At September 30, 2025 and December 31, 2024, the fair value of our interests in consolidated Sequoia securitizations accounted for under the CFE election was $650 million and $418 million, respectively, with the difference in value of our investments in these VIEs reflected in the September 30, 2025 and December 31, 2024 table above representing $187 million and $79 million, respectively, of consolidated Sequoia securities in the Sequoia re-securitizations and $432 million and $184 million, respectively, of ABS issued at fair value.

(3)During the three months ending September 30, 2025, the Freddie Mac K-Series securitization was called and the securities that we had retained from this VIE were paid off at par.

(4)During the three months ending September 30, 2025, we exercised our call right on one of our HEI securitizations. See additional information related to the call of this VIE in Note 10.

(5)See Note 24 for further discussion.

Schedule of Unconsolidated VIEs Sponsored by Redwood

The following table presents additional information at September 30, 2025 and December 31, 2024, related to unconsolidated VIEs sponsored by Redwood and accounted for as sales.

Table 16.2 – Unconsolidated VIEs Sponsored by Redwood

(In Thousands)						September 30, 2025						December 31, 2024
On-balance sheet assets, at fair value:
Subordinate securities, classified as AFS						$	280,395					$	91,221
Interest-only, senior and subordinate securities, classified as trading						34,163						36,811
Mortgage servicing rights						12,197						12,556
Strategic investments, equity method						10,263						—
Funding commitment (1)						10,000						—
Maximum loss exposure (2)						$	347,018					$	140,588

(1)Represents Redwood’s agreement, entered into on September 30, 2025, to provide up to $35 million of capital support to a trust holding legacy unsecuritized bridge loans. We funded $10 million at closing, with up to $25 million remaining subject to specified portfolio triggers. Refer to Notes 8, 9, and 19 for additional information.

(2)Maximum loss exposure from our involvement with unconsolidated VIEs pertains to the carrying value of our securities and MSRs retained from these VIEs and represents estimated losses that would be incurred under severe, hypothetical circumstances, such as if the value of our interests and any associated collateral declines to zero. This does not include, for example, any potential exposure to representation and warranty claims associated with our initial transfer of loans into a securitization.

X

- References

No definition available.

+ Details

Name:	us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of a transferor's continuing involvement with financial assets transferred to a transferee in a securitization, asset-backed financing arrangement, or similar transfer. Such disclosure would, at a minimum, contain information allowing for an assessment of the reasons for the transferor's continuing involvement, the risks related to the transferred financial assets to which the transferor continues to be exposed, and the extent of change to the transferor's risk profile due to the transfer (including, but not limited to, credit risk, interest rate risk, other).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481326/860-20-50-4

+ Details

Name:	us-gaap_QualitativeAndQuantitativeInformationTransferorsContinuingInvolvementTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481203/810-10-50-3

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 5A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481203/810-10-50-5A

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481203/810-10-50-9

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481203/810-10-50-4

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481203/810-10-50-6

+ Details

Name:	us-gaap_ScheduleOfVariableInterestEntitiesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration