Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 163

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 163
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 interest expense) from these consolidated entities presented in the table above.

(3)Real estate securities include trading securities consisting primarily of interest-only securities, which generate a higher cash interest yield. This interest income may be offset by a decline in fair value (recognized through investment fair value changes, net on our consolidated statements of income) related to the receipt of cash flows each period, resulting in a lower overall economic yield for these investments.

68

Consolidated Market Valuation Gains and Losses, Net 

The following table presents the net market valuation gains and losses recorded in each line item of our consolidated statements of income for the three and six months ended June 30, 2025 to the immediate preceding quarter ended March 31, 2025 and year-to-date period ended June 30, 2024. 

Table 3 – Consolidated Market Valuation Gains and Losses, NetThree Months EndedSix Months Ended(In Thousands)June 30, 2025March 31, 2025June 30, 2025June 30, 2024Mortgage Banking Activities, NetResidential consumer loans held-for-sale$6,460 $460 $6,920 $9,032 Residential consumer LPCs8,635 30,139 38,774 1,419 Residential investor term loans held-for-sale4,560 5,815 10,375 5,661 Residential investor term loan IRLCs— 1,115 1,115 111 Residential investor bridge loans3,573 1,032 4,605 2,054 Trading securities (1)(38,645)(29,327)(67,972)11,122 Risk management derivatives, net48,135 17,842 65,977 (6,788)Total mortgage banking activities, net (2)32,718 27,076 59,794 22,611 Investment Fair Value Changes, NetResidential investor term loans held-for-sale(9,489)(42)(9,531)(1,337)Residential investor bridge loans held-for-investment(57,998)(22,839)(80,837)(17,210)Real estate securities(1,117)(4,107)(5,224)5,945 Servicer advance investments(1,825)(1,353)(3,178)10,977 Excess MSRs(1,144)(1