Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 108

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 108
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 value (1)$587,636 $589,785 (1)As of June 30, 2025, balance includes $579 million of third-party originated HEI included in our Legacy Investments segment.The following table details our HEI activity during the three and six months ended June 30, 2025 and 2024. Changes in the value of HEI during the three months ended June 30, 2025 are driven by incremental negative fair value adjustments, reflecting anticipated near-term resolutions on HEI held in our Legacy Investments segment. Table 10.2 – Activity of HEIThree Months Ended June 30,20252024(In Thousands)Unsecuritized HEISecuritized HEIUnsecuritized HEISecuritized HEIFair value of HEI purchased and originated$4,226 $— $299 $— Net market valuation (losses) gains recorded (14,306)8,621 11,663 17,029 Six Months Ended June 30,20252024(In Thousands)Unsecuritized HEISecuritized HEIUnsecuritized HEISecuritized HEIFair value of HEI purchased and originated$6,060 $— $606 $— Net market valuation (losses) gains recorded (7,170)20,533 17,806 32,453 

35

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2025(Unaudited) Note 10. Home Equity Investments (HEI) - (continued)

The following table provides the components of HEI income, net for the three and six months ended June 30, 2025 and 2024.Table 10.3 – Components of HEI Income, netThree Months Ended June 30,(In Thousands)20252024Net market valuation (losses) gains recorded on Unsecuritized HEI$(14,306)$11,663 Net market valuation gains recorded on Securitized HEI8,621 17,029 Net market valuation (losses) recorded on ABS Issued from HEI securitizations (1)(5,262)(5,472)Net market valuation (losses) recorded on non-controlling interests in HEI securitizations(2,133)(7,381)Other (2)181 $44 Total