Company: RWT-PA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000930236-25-000020
Chunk: 116

Company: REDWOOD TRUST INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 116
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. We do not originate residential consumer loans and we believe the initial risk of loss due to loan repurchases (i.e., due to a breach of representations and warranties) would generally be a contingency to the companies from whom we acquired the loans, as applicable. However, in some cases, for example, where loans were acquired from companies that have since become insolvent, repurchase claims may result in our being liable for a repurchase obligation. As of March 31, 2025, we were not aware of any material unsettled repurchase claims for these groups of sold loans. For residential investor 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. As of March 31, 2025, there was one outstanding repurchase claim on two residential investor loans we expect to repurchase from a securitization trust and for which we had recorded an estimated $4 million of valuation losses through Investment fair value changes, net on our consolidated statements of income as of March 31, 2025.

44

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 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 months ended March 31, 2025 and 2024. Table 20.1 – Changes in Accumulated Other Comprehensive Income (Loss) by ComponentThree Months Ended March 31, 2025Three Months Ended March 31, 2024(In Thousands)AFS SecuritiesInterest Rate Agreements Accounted for as Cash Flow HedgesTotalAFS SecuritiesInterest Rate Agreements Accounted for as Cash Flow Hedges