Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 331

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 331
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curitization entity and paid off the underlying ABS issued. 

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 nine months ended September 30, 2025. 

Table 14 – Legacy Unsecuritized Bridge and Term Loan Portfolios - ActivityThree Months Ended September 30, 2025Nine Months Ended September 30, 2025(in thousands)Fair value at beginning of period$935,946 $1,058,612 Advances — 260,712 Acquisitions— 43,037 Transfers between segments2,600 (149,071)Sales(439,965)(518,623)Transfers to REO(29,366)(36,938)Principal repayments(29,576)(130,031)Changes in fair value, net1,720 (86,339)Fair Value at End of Period $441,359 $441,359 

For the three and nine months ended September 30, 2025, gross interest income recognized on Legacy bridge and term loans totaled $8 million and $36 million, respectively. These amounts include a write-off of deferred interest of $0.4 million in the three months ended September 30, 2025 and recognition of $4 million of deferred income during the nine months ended September 30, 2025. 

At September 30, 2025, legacy unsecuritized bridge and term loans in this portfolio with an aggregate fair value of $192 million and an unpaid principal balance of $241 million, were greater than 90+ days delinquent. Included in the 90+ days delinquent balance are legacy bridge loans in foreclosure with an aggregate fair value of $17 million and an aggregate unpaid principal balance of $23 million. Additionally, the fair value of REO associated with legacy unsecuritized bridge loans decreased to $24 million at September 30, 2025, from $58 million at June 30, 2025, resulting from the sale of one REO property to the Legacy  Trust for $29 million and a decrease in fair value totaling $5 million, partially offset by transfers to REO of $29 million and payoffs of $29 million. Legacy REO properties are actively being marketed and are expected to be resolved over the next few quarters