Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 82

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 82
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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.

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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 other indications of value, net of expected sales costs.Refer to Note 15 for further information on our REO.

Note 7. Residential Consumer Loans

We acquire residential consumer loans from third-party originators and may sell or securitize these loans and hold a retained portion for investment.The following table summarizes the classifications and fair values of the securitized and unsecuritized residential consumer loans owned at September 30, 2025 and December 31, 2024.Table 7.1 – Classifications and Fair Values of Residential Consumer LoansSeptember 30, 2025Unsecuritized Jumbo LoansSecuritized Jumbo LoansSecuritized Re-Performing Loans(In Thousands)TotalHeld-for-sale at fair value$2,455,559 $— $1,248,236 $3,703,795 Held-for-investment at fair value— 13,079,486 — 13,079,486 Total Residential Consumer Loans$2,455,559 $13,079,486 $1,248,236 $16,783,281 December 31, 2024Unsecuritized Jumbo LoansSecuritized Jumbo LoansSecuritized Re-Performing Loans(In Thousands)TotalHeld-for-sale at fair value$1,013,547 $— $— $1,013,547 H