Company: RWT-PA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000930236-25-000007
Chunk: 307

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 307
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,445 Loan purchase commitments entered into (loan locks, adjusted for expected fallout)$7,374,031 $2,592,626 $4,781,405 

72

Footnote to Table 5

(1)Operating expenses presented in the table above include general and administrative expenses and loan acquisition costs for this segment.

Table 6 – Loan Inventory Activity for Sequoia Mortgage Banking OperationsYears Ended December 31,(In Thousands)20242023Fair Value at beginning of year $911,192 $628,160 Acquisitions7,120,201 2,053,879 Sales (1,667,513)(127,055)Transfers between segments (1)(5,296,631)(1,640,005)Principal repayments(100,360)(30,474)Changes in fair value, net46,658 26,687 Fair Value at End of Year$1,013,547 $911,192 

(1)Represents the fair value of the net transfers of loans from held-for-sale to held-for-investment within our Redwood Investments portfolio, associated with securitizations we sponsored that we consolidate under GAAP.

Segment contribution increased $51 million during the year ended December 31, 2024, primarily driven by significantly higher loan purchase and lock volumes from both banks and IMBs. Notably, total lock volume was 154% higher than in 2023 as IMB volumes grew 164% and bank volumes grew 141%. We estimate that our market share increased to between 4% and 5% in 2024, compared to our historical range of 1% to 3%. Market transaction volume in 2023 was impacted by the regional bank crisis which also caused considerable interest rate volatility during that time. 

Volume increases during the year ended December 31, 2024 occurred as a result of focused efforts to build our network of bank sellers and increase wallet share with IMBs. We have added or re-established 95 bank seller relationships since the regional banking crisis of 2023 and as of year-end December 31, 2024, our total network of loan sellers is 210, over half of which are banks. We made significant progress with our network of new loan sellers during the year, including onboarding and commencing loan purchase activity. During the year ended December 31, 2024, we also saw an increase in bulk volume from banks and IMBs, including a