Company: RWT-PA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000930236-25-000007
Chunk: 106

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 16
Chunk 106
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 which are classified in accordance with their general position within a securitization structure based on their rights to cash flows. Senior securities are those interests in a securitization that generally have the first right to cash flows and are last in line to absorb losses. Mezzanine securities are interests that are generally subordinate to senior securities in their rights to receive cash flows, and have subordinate securities below them that are first to absorb losses. Subordinate securities are all interests below mezzanine. Exclusive of our re-performing loan securities, nearly all of our residential securities are supported by collateral that was designated as prime at the time of issuance.Trading SecuritiesWe elected the fair value option for certain securities and classify them as trading securities. Our trading securities generally include both residential and multifamily mortgage-backed interest-only and subordinate securities. Refer to Note 6 for further information on the inputs into the fair valuation of our real estate trading securities.

F- 45

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024Note 9. Real Estate Securities - (continued)

AFS SecuritiesThe following tables present the detail of our AFS securities, by position and collateral type, at December 31, 2024 and 2023.Table 9.2 –  Carrying Value and Fair Value of AFS Securities by TypeDecember 31, 2024(In Thousands)SeniorMezzanineSubordinateTotalAmortized cost$39,135 $31,250 $121,053 $191,438 Gross unrealized gains230 668 25,733 26,631 Gross unrealized losses— (51)(5,623)(5,674)Allowance for credit losses— — (921)(921)Total Carrying Value$39,365 $31,867 $140,242 $211,474 December 31, 2023(In Thousands)SeniorMezzanineSubordinateTotalAmortized cost$— $— $79,635 $79,635 Gross unrealized gains— — 16,973 16,973 Gross unrealized losses— — (6,753)(6,753)Allowance for credit losses— — (2,482)(2,482)Total Carrying Value$— $— $87,373 $87,373 December 31,