Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 357

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 357
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 residential consumer loan purchases as well as an increase in originations of residential investor loans held for sale associated with our mortgage banking activities. Excluding cash flows from the purchase, origination, sale and principal payments of loans classified as held-for-sale, and the settlement of associated derivatives (which cumulatively totaled $4.11 billion of net cash outflows for the six months 2025 period, compared to $2.97 billion of net cash outflows for the six month 2024 period), cash flows from operating activities were positive $43 million during the first six months of 2025 and positive $51 million for the first six months of 2024. 

Cash Flows from Investing Activities 

During the six months ended June 30, 2025, our net cash provided by investing activities was $1.64 billion and primarily resulted from proceeds from principal payments on loans held-for-investment and other investments, in excess of cash deployed into these investments. Because many of our investment securities, loans and HEI are financed through various borrowing agreements, a significant portion of the proceeds from any sales or principal payments of these assets are generally used to repay balances under these financing sources. Similarly, all or a significant portion of cash flows from principal payments of loans and HEI at consolidated securitization entities would generally be used to repay ABS issued by those entities.

86

Cash Flows from Financing Activities 

During the six months ended June 30, 2025, our net cash provided by financing activities was $2.56 billion. This primarily resulted from $2.35 billion of net borrowings under ABS issued (resulting from the issuance of six Sequoia securitizations as well as the issuance of $100 million and $109 million of ABS through two Sequoia re-securitizations of certain consolidated and unconsolidated Sequoia securities during the six months ending June 30, 2025, net of related issuance costs), and $281 million of net borrowings on debt obligations. During the six months ending June 30, 2025, net cash provided from debt obligations included the issuance of $90 million of senior notes as well as a $93 million recourse subordinate financing facility providing non-marginable debt financing of certain securities retained from our Sequoia securitizations and other third-party securities.

Material Cash Requirements

In the normal course of business, we enter into transactions that may require future cash payments.