Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 254

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 254
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ited) Note 7. Residential Consumer Loans - (continued)

The following table provides the activity of securitized jumbo residential consumer loans held-for-investment during the three and six months ended June 30, 2025 and 2024.Table 7.5 – Activity of Residential Consumer Loans Held-for-InvestmentThree Months Ended June 30,Six Months Ended June 30,(In Thousands)2025202420252024Principal value of loans transferred from HFS to HFI (1)$2,049,465 $1,424,026 $3,673,365 $2,611,987 Net market valuation gains (losses) recorded52,453 (48,590)134,137 (103,399)(1)Represents the transfer of loans from held-for-sale to held-for-investment associated with jumbo securitization

Note 8. Residential Investor Loans

We originate and invest in residential investor loans, including term loans and bridge loans. As of June 30, 2025, certain residential investor loans were classified as HFS in connection with our ongoing strategic realignment. In the three months ended June 30, 2025, we established Legacy Investments as a new reportable segment, to present financial results for assets that are managed separately based on how the CODM evaluates capital allocation decisions and assesses performance in accordance with our segment reporting framework. As of June 30, 2025, $886 million of legacy unsecuritized bridge loans and $50 million of legacy unsecuritized term loans were reported in the Legacy Investments segment. These loans are classified as HFS and are managed within the Legacy Investments segment due to their characteristics and strategic prioritization, consistent with how the CODM reviews and evaluates the business. See Note 4 for further discussion on our reportable segments, including the new Legacy Investments segment. The following table summarizes the classifications and carrying values of the securitized and unsecuritized residential investor loans at June 30, 2025 and December 31, 2024.Table 8.1 – Classifications and Carrying Values of Residential Investor LoansJune 30, 2025Residential Investor TermResidential Investor Bridge(In Thousands)UnsecuritizedSecuritizedUnsecuritizedSecuritizedTotalHeld-for-sale at fair value (1)(2)$174,808 $— $949,264 $— $1,124,072 Held