Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 183

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 183
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 Sequoia securitization trusts with a fair value of $477 million that were financed with $382 million of non-recourse re-securitization debt (ABS issued); real estate securities with a fair value of $167 million (including securities owned in consolidated securitization entities) that were financed with $93 million of recourse debt incurred through repurchase facilities; and $161 million of securities that were financed using a recourse residential MSR warehouse facility. The remaining $106 million of our securities, including certain securities we own that were issued by consolidated securitization entities, were financed with capital. 

The following table summarizes the credit characteristics of Sequoia securities and CAFL term securities at June 30, 2025. This table includes both our securities held on balance sheet and our economic interest in securities we own in securitizations we consolidate in accordance with GAAP.

Table 12 – Credit Statistics (1)June 30, 2025Sequoia Securities (2)CAFL Term Securities(Dollars in Thousands)Market value$650,314 $330,340 Notional value$15,257,000 $2,399,197 Average FICO (at origination)772 NA Gross weighted average coupon5.1 %5.3 %Current 3-month prepayment rate14 %12 %90+ days delinquency (as a % of UPB) (3)(4)0.3 %7.1 %

(1)The methodology for calculating weighted average values for securities investments presented in the tables above, including delinquency rates, is based on notional balances of loans collateralizing each of our securities investments.

(2)Sequoia Securities presented in this table include subordinate and interest only or certificated servicing securities.

(3)Delinquency percentages at underlying securitizations are calculated using unpaid principal balance ("UPB"). Aggregate delinquency amounts by security type are weighted using the UPB of the loans collateralizing each of our securities investments.

(4)Includes loans over 90 days delinquent and all loans in foreclosure (regardless of delinquency status).

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Legacy Investments Segment

In the second quarter of 2025, we established Legacy Investments as a new reportable segment. This new segment primarily consists of assets no longer aligned with our core strategic objectives, including legacy unsecuritized bridge and term loans,