Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 234

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 234
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 loans held-for-sale (1)3$101,836 $101,836 $— $— Cash and cash equivalents1226,321 226,321 245,165 245,165 Restricted cash1103,868 103,868 67,762 67,762 LiabilitiesDebt obligation facilities and other financing2$3,576,657 $3,577,448 $2,818,292 $2,819,393 ABS issued, net3214,938 216,104 390,674 392,344 Convertible notes, net1415,999 422,266 365,739 365,455 Trust preferred securities and subordinated notes, net3138,894 83,700 138,860 93,465 Senior Notes1225,111 227,477 139,989 146,716 Guarantee obligations (2)31,660 2,691 2,806 3,204 (1)Residential investor loans reported at lower of cost or market for which the carrying value approximates fair value at September 30, 2025.(2)These liabilities are included in Accrued expenses and other liabilities on our consolidated balance.  During the three and nine months ended September 30, 2025, we elected the fair value option for $25 million and $46 million of securities, $3.85 billion and $9.16 billion (principal balance) of residential consumer loans, and $487 million and $1.38 billion (principal balance) of residential investor loans. Additionally, during the three and nine months ended September 30, 2025, we elected the fair value option for $3 million and $9 million of newly originated HEI.

21

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025(Unaudited) Note 6. Fair Value of Financial Instruments - (continued)

Nonrecurring Fair ValuesWe measure the fair value of certain assets and liabilities on a nonrecurring basis when events or changes in circumstances indicate that the carrying value may be impaired. Adjustments to fair value generally result from the write-down of asset values due to impairment. REO in Other Assets and Liabilities are classified as Level 3 in the fair value hierarchy based upon fair value determinations using appraisals, broker price opinions, comparable properties or