Company: RWT-PA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000930236-25-000020
Chunk: 93

Company: REDWOOD TRUST INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 93
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itization entities that we consolidated in accordance with GAAP, and have elected to account for them under the CFE election. As such, market valuation changes for the securitized HEI are based on the fair value of the associated ABS issued by the entity, including the interest we own, and are reported in HEI income, net on our Consolidated statements of income.The following table presents our HEI at March 31, 2025 and December 31, 2024.Table 10.1 – Home Equity Investments(In Thousands)March 31, 2025December 31, 2024Unsecuritized HEI$262,405 $257,315 HEI held at consolidated HEI securitization entities337,981 332,470 Total Home Equity Investments$600,386 $589,785 The following table details our HEI activity during the three months ended March 31, 2025 and 2024.Table 10.2 – Activity of HEIThree Months Ended March 31, 2025Three Months Ended March 31, 2024(In Thousands)Unsecuritized HEISecuritized HEIUnsecuritized HEISecuritized HEIFair value of HEI purchased and originated$1,834 $— $307 $— Net market valuation gains recorded 7,136 11,912 6,143 15,424 The following table provides the components of HEI income, net for the three months ended March 31, 2025 and 2024.Table 10.3 – Components of HEI Income, net(In Thousands)Three Months Ended March 31, 2025Three Months Ended March 31, 2024Net market valuation gains recorded on Unsecuritized HEI$7,136 $6,143 Net market valuation gains recorded on Securitized HEI11,912 15,424 Net market valuation (losses) recorded on ABS Issued from HEI securitizations (1)(3,769)(7,409)Net market valuation (losses) recorded on non-controlling interests in HEI securitizations(5,208)(5,127)Other95 $55 Total HEI income, net$10,166 $9,086 

(1)Amount includes interest expense associated with ABS issued, which totaled $3 million for the three months ended March 31,