Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 349

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 349
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 of $171 million. At June 30, 2025, for GAAP purposes, we consolidated $341 million of HEI, $206 million of ABS and $90 million of third-party non-controlling interests held in our consolidated HEI securitization entities, for a net economic interest of $51 million. 

Additional details on our HEI are included in Note 10 of our Notes to Consolidated Financial Statements, included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

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Legacy Unsecuritized Bridge and Term Loan Portfolios

The following table provides the activity of the legacy unsecuritized bridge and term loans during the three and six months ended June 30, 2025. 

Table 17 – Legacy Unsecuritized Bridge and Term Loan Portfolios - Activity

Three Months Ended June 30, 2025Six Months Ended June 30, 2025(in thousands)Fair value at beginning of period$1,062,363 $1,058,612 Advances (1)107,926 260,712 Acquisitions36,236 43,037 Transfers between segments(55,423)(151,671)Sales(73,803)(78,658)Transfers to REO(5,469)(7,572)Principal repayments(66,489)(100,455)Changes in fair value, net(69,395)(88,059)Fair Value at End of Period $935,946 $935,946 

(1)Advances reflect newly originated loans that we intend to sell to securitizations or to our joint ventures.

For the three and six months ended June 30, 2025, interest income, net recognized on Legacy bridge and term loans totaled $9 million and $28 million, respectively. These amounts include a net write-off of deferred interest of $0.5 million in the three months ended June 30, 2025 and recognition of $4 million of deferred income during the six months ended June 30, 2025. The decrease in net interest income recognized in the three-month period was due to an increase in the balance of our legacy unsecuritized bridge and term loan portfolios on non-accrual during the quarter.

At June 30, 2025, legacy unsecuritized bridge and term loans in this portfolio with an aggregate fair value of $186 million