Company: RWT-PA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000930236-25-000020
Chunk: 148

Company: REDWOOD TRUST INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 148
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1 of this Quarterly Report on Form 10-Q for further detail on the composition of mortgage banking activities), and other income, net for this segment. Operating expenses presented in the table above includes general and administrative expenses, loan acquisition costs and other expenses (including amortization of purchased intangibles) for this segment.

Activity of this segment that is performed within/at our TRS is subject to federal and state income taxes. The benefit from income taxes was primarily due to GAAP losses generated by this segment’s operations at our TRS in those periods presented above. 

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The following table provides unsecuritized residential investor loan origination activity during the three months ended March 31, 2025. 

Table 8 – Residential Investor Loans - Funding ActivityThree Months Ended March 31, 2025(In Thousands)Term LoansBridge Loans (1)TotalFair value at beginning of period$158,637 $78,587 $237,224 Fundings (1) (2)188,218 293,231 481,449 Acquisitions6,800 — 6,800 Sales (2)(186,886)(183,430)(370,316)Transfers between segments (3)(273)(105,526)(105,799)Transfers to REO— (109)(109)Principal repayments(3,221)(10,877)(14,098)Changes in fair value, net6,097 177 6,274 Fair Value at End of Period$169,372 $72,053 $241,425 

(1)We originate Residential investor bridge loans at our TRS and transfer many of them to our REIT. Origination fees and any fair value changes on these loans prior to transfer or sale are recognized within Mortgage banking activities, net on our consolidated statements of income. Loans transferred to our REIT are classified as held-for-investment, with fair value changes subsequent to their transfer generally recorded through Investment fair value changes, net on our consolidated statements of income. For the carrying value and activity of our Residential investor bridge loans held-for-investment, see the Redwood Investments section that follows.

(2)Funding and sales for Residential investor bridge loans for the three months ended March 31, 2025, includes $29 million of construction draws, of which $16 million were related to construction draws on loans sold to joint ventures.

(3)For Residential investor term loans, amounts primarily represent loans transferred into consolidated secur