Company: RWT-PA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000930236-25-000020
Chunk: 275

Company: REDWOOD TRUST INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 275
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 economically, we earn interest income from the securities we own in these entities, which is represented by the net interest income (interest income less interest expense) from these consolidated entities presented in the table above.

(3)Real estate securities include trading securities consisting primarily of interest-only securities, which generate a higher cash interest yield. This interest income may be offset by a decline in fair value (recognized through investment fair value changes, net on our consolidated statements of income) related to the receipt of cash flows each period, resulting in a lower overall economic yield for these investments.

57

Consolidated Market Valuation Gains and Losses, Net 

The following table presents the net market valuation gains and losses recorded in each line item of our consolidated statements of income for the three months ended March 31, 2025 to the immediate preceding quarter ended December 31, 2024 and year-to-date period ended March 31, 2024. 

Table 3 – Consolidated Market Valuation Gains and Losses, NetThree Months EndedThree Months Ended(In Thousands)March 31, 2025December 31, 2024March 31, 2025March 31, 2024Mortgage Banking Activities, NetResidential consumer loans held-for-sale$460 $9,369 $460 $2,497 Residential consumer LPCs30,139 (1,760)30,139 (6,351)Residential investor term loans held-for-sale5,815 (141)5,815 (296)Residential investor term loan IRLCs1,115 — 1,115 — Residential investor bridge loans1,032 1,019 1,032 946 Trading securities (1)(29,327)58,681 (29,327)8,511 Risk management derivatives, net17,842 (47,319)17,842 5,598 Total mortgage banking activities, net (2)27,076 19,849 27,076 10,905 Investment Fair Value Changes, NetResidential investor term loans held-for-sale(42)(5,940)(42)(1,000)Residential investor bridge loans held-for-investment(22,839)(12,927)(22,839)(3,218)Real estate securities(4,107)4,711 (4,107)4,810 Servicer advance investments(1,353)580