Company: RWT-PA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000930236-25-000020
Chunk: 107

Company: REDWOOD TRUST INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 107
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izations accounted for under the CFE election was $29 million, with the difference from the tables above generally representing ABS issued and carried at amortized historical cost and accrued interest on our economic interests. At March 31, 2025 and December 31, 2024, the fair value of our interests in the Freddie Mac SLST securitizations accounted for under the CFE election were $264 million and $242 million, respectively, with the difference from the tables above representing ABS issued and carried at amortized historical cost.(2)Additionally, the ABS from two Sequoia re-securitizations are not accounted for under the CFE election and are accounted for at fair value (included within the Sequoia column at March 31, 2025). At March 31, 2025, the fair value of our interests in consolidated Sequoia securitizations accounted for under the CFE election was $532 million, with the difference in value of our investments in these VIEs reflected in the March 31, 2025 table above representing $102 million of consolidated Sequoia securities in the Sequoia re-securitization and $276 million of ABS issued at fair value. Unconsolidated VIEs with Continuing InvolvementWe have transferred residential consumer loans to certain Sequoia securitization entities sponsored by us that are still outstanding as of March 31, 2025, and accounted for these transfers as sales for financial reporting purposes, in accordance with GAAP. We also determined we were not the primary beneficiary of these VIEs as we lacked the power to direct the activities that will have the most significant economic impact on the entities. For certain of these transfers to securitization entities, for the transferred loans where we held the servicing rights prior to the transfer and continued to hold the servicing rights following the transfer, we recorded mortgage servicing rights ("MSRs") on our consolidated balance sheets and classified those MSRs as Level 3 assets. We also retained senior and subordinate securities in these securitizations that we classified as Level 3 assets. Our continuing involvement in these securitizations is limited to customary servicing obligations associated with retaining servicing rights (which we retain a third-party sub-servicers to perform) and the receipt of interest income associated with the securities we retained.

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REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2025