Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 226

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 226
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 30, 2025(Unaudited) 

Note 5. Mortgage Banking Activities, Net

Mortgage banking activities, net includes changes in fair value of loans held-for-sale, loan purchase commitments, interest rate lock commitments and related risk management derivatives held in our Sequoia Mortgage Banking and CoreVest Mortgage Banking segments. The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income for the three and nine months ended September 30, 2025 and 2024.Table 5.1 – Mortgage Banking ActivitiesThree Months Ended September 30,Nine Months Ended September 30,(In Thousands)2025202420252024Sequoia Mortgage Banking Activities, Net:Changes in fair value of:Residential consumer loans, at fair value (1)$54,872 $20,959 $100,566 $31,410 Trading securities (2)(24,382)(28,630)(92,354)(17,508)Risk management derivatives (3)(2,426)34,051 65,389 25,121 Other income, net (4)655 335 1,665 1,764 Total Sequoia mortgage banking activities, net28,719 26,715 75,266 40,787 CoreVest Mortgage Banking Activities, Net:Changes in fair value of:Residential investor term loans, at fair value (1)3,291 6,061 14,781 11,833 Residential investor bridge loans, at fair value1,030 694 5,635 2,748 Risk management derivatives (3)18 551 (1,820)2,692 Other income, net (4) (5)7,074 5,548 20,180 14,989 Total CoreVest mortgage banking activities, net11,413 12,854 38,776 32,262 Mortgage Banking Activities, Net$40,132 $39,569 $114,042 $73,049 (1)Includes changes in fair value for associated loan purchase commitments for residential consumer loans and associated interest rate lock commitments for residential investor term loans. (2)Represents fair value changes on trading securities that are being used as hedges to manage the mark-to-market risks associated with our Sequoia mortgage banking operations.(3)Represents market valuation changes of derivatives that were used to manage risks