Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 102

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 102
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 income, net for the three and nine months ended September 30, 2025 and 2024.Table 10.3 – Components of HEI Income, netThree Months Ended September 30,(In Thousands)20252024Net market valuation gains recorded on Unsecuritized HEI$198 $5,812 Net market valuation gains recorded on Securitized HEI2,960 19,407 Net market valuation (losses) recorded on ABS Issued from HEI securitizations (1)(2,596)(5,964)Net market valuation (losses) recorded on non-controlling interests in HEI securitizations(231)(8,604)Other123 $76 Total HEI (loss) income, net$454 $10,727 Nine Months Ended September 30,(In Thousands)20252024Net market valuation (losses) gains recorded on Unsecuritized HEI$(6,972)$23,618 Net market valuation gains recorded on Securitized HEI23,493 51,859 Net market valuation (losses) recorded on ABS Issued from HEI securitizations (1)(11,627)(18,845)Net market valuation (losses) recorded on non-controlling interests in HEI securitizations(7,573)(21,111)Other400 175 Total HEI (loss) income, net $(2,279)$35,696 

(1)Amount includes interest expense associated with ABS issued, which totaled $3 million and $9 million, for both the three and nine months ended September 30, 2025 and 2024, respectively. 

Note 11. Servicing Investments

Servicing Investments at September 30, 2025 and December 31, 2024 are summarized in the following table.Table 11.1 – Components of Servicing Investments(In Thousands)September 30, 2025December 31, 2024Servicer advance investments, at fair value$221,656 $233,820 Excess MSRs, at fair value30,044 32,274 MSRs, at fair value30,556 31,589 Total Servicing Investments$282,256 $297,683 We account for our Servicer advance investments, Excess MSRs and MSRs at fair value. Refer to Note 6 for further information on the inputs into the fair valuation of