Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 297

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 297
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vent, repurchase claims may result in our being liable for a repurchase obligation. At June 30, 2025, we were not aware of any material unsettled repurchase claims for these groups of sold loans. For residential investor term loans sold to securitization trusts, we record estimated losses on loans we are required to repurchase through Investment fair value changes, net as a component of the loan fair value for the corresponding CFE. During the three months ended June 30, 2025, as a result of a repurchase claim from earlier in 2025, we repurchased two residential investor term loans from a securitization trust with an unpaid principal balance of $36 million. During the three months ended June 30, 2025, we recorded $13 million of valuation losses related to these loan repurchases through Investment fair value changes, net on our consolidated statements of income. At June 30, 2025, these residential investor terms loans were classified as held-for-sale on our consolidated balance sheets.

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REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2025(Unaudited) Note 19. Commitments and Contingencies - (continued)

Loss Contingencies — Litigation, Claims and DemandsThere is no significant update regarding the litigation matters described in Note 18 within the financial statements included in Redwood’s Annual Report on Form 10-K for the year ended December 31, 2024 under the heading “Loss Contingencies - Litigation, Claims and Demands.” For additional information related to our commitments and contingencies, see Note 18 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024.

Note 20. Equity

The following tables provides a summary of changes to accumulated other comprehensive income (loss) by component for three and six months ended June 30, 2025 and 2024. Table 20.1 – Changes in Accumulated Other Comprehensive Income (Loss) by ComponentThree Months Ended June 30, 2025Three Months Ended June 30, 2024(In Thousands)AFS SecuritiesInterest Rate Agreements Accounted for as Cash Flow HedgesTotalAFS SecuritiesInterest Rate Agreements Accounted for as Cash Flow HedgesTotalBalance at beginning of period$23,680 $(63,020)$(39,340)$18