Company: RWT-PA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000930236-25-000007
Chunk: 326

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 326
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 of residential properties for rent.

(2)    Includes loans for light to moderate renovation of residential investor and small multifamily properties (generally less than 20 units).

(3)    Includes loans for predominantly light to moderate rehab projects on multifamily properties.

At December 31, 2024, the fair value of our total residential investor bridge loans held-for-investment and associated REO represented 97.1% of the combined unpaid principal balance of these loans and the unpaid principal balance of the loans associated with the REO at time of foreclosure. The fair value of multifamily loans within this population ($762 million at December 31, 2024) and associated multifamily REO ($32 million at December 31, 2024), represented 93.9% of the combined unpaid principal balance of 

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these loans and the unpaid principal balance of the loans associated with the REO at time of foreclosure. As we have revised our underwriting practices to discontinue the active origination of large multi-family loans, we expect the exposure to multifamily loans and REO to decrease over time. 

Home Equity Investments

The following table provides the activity of HEI held at our Redwood Investments segment during the years ended December 31, 2024 and 2023. 

Table 15 – HEI at Redwood Investments Segment - ActivityHome Equity Investments(1)Years Ended December 31,(In Thousands)20242023Balance at beginning of year$550,436 $403,462 New/additional investments2,043 136,445 Settlements(49,553)(43,398)Changes in fair value, net86,687 53,927 Other172 — Balance at End of Year$589,785 $550,436 

(1)Our HEI presented in this table as of December 31, 2024, include $332 million of HEI owned in our consolidated HEI securitization entities and $257 million of HEI owned directly at Redwood.

We finance a portion of our HEI through a short-term warehouse facility. At December 31, 2024, there was $97 million of debt outstanding on this warehouse facility, secured by HEI with a fair value of $207 million. 

Additional details on our HEI is included in Note 10 of our Notes to Consolidated Financial Statements, included in Part II, Item 8 of this Annual Report on Form