Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 270

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 270
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Amount includes HEI income, net from direct HEI originations of $0.1 million and zero, for the three months ended June 30, 2025 and 2024, respectively, and $0.2 million and zero, for the six months ended June 30, 2025 and 2024, respectively.

Note 11. Servicing Investments

Servicing Investments at June 30, 2025 and December 31, 2024 are summarized in the following table.Table 11.1 – Components of Servicing Investments(In Thousands)June 30, 2025December 31, 2024Servicer advance investments, at fair value$236,225 $233,820 Excess MSRs, at fair value29,940 32,274 MSRs, at fair value31,839 31,589 Total Servicing Investments$298,004 $297,683 We account for our Servicer advance investments, Excess MSRs and MSRs at fair value. Refer to Note 6 for further information on the inputs into the fair valuation of these components. Refer to Note 11 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding these components and related transactions.For the three months ended June 30, 2025 and 2024, income from Servicing investments included Other interest income of $7 million and $8 million, respectively, Investment fair value changes, net of negative $3 million and positive $10 million, respectively, and Servicing income, net of $2 million and $4 million, respectively. For the six months ended June 30, 2025 and 2024, income from Servicing investments included Other interest income of $14 million and $16 million, respectively, Investment fair value changes, net of negative $6 million and positive $8 million, respectively, and Servicing income, net of $5 million and $8 million, respectively.

36

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2025(Unaudited) 

Note 12. Strategic Investments

Strategic Investments at June 30, 2025 and December 31, 2024 are summarized in the following table.Table 12.1 – Components of Strategic Investments(In