Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 104

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 104
---
 211,474 Total Real Estate Securities$264,997 $405,223 Our real estate securities include mortgage-backed securities, which are classified in accordance with their general position within a securitization structure based on their rights to cash flows. Senior securities are those interests in a securitization that generally have the first right to cash flows and are last in line to absorb losses. Mezzanine securities are interests that are generally subordinate to senior securities in their rights to receive cash flows, and have subordinate securities below them that are first to absorb losses. Subordinate securities are all interests below mezzanine. Exclusive of our re-performing loan securities, nearly all of our residential securities are supported by collateral that was designated as prime at the time of issuance. 

32

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2025(Unaudited) Note 9. Real Estate Securities - (continued)

Refer to Note 3 to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2024 for further information and our accounting policies for our trading and AFS real estate securities.Trading SecuritiesWe elected the fair value option for certain securities and classify them as trading securities. Our trading securities generally include both residential and multifamily mortgage-backed interest-only and subordinate securities. Refer to Note 6 for further information on the inputs into the fair valuation of our real estate trading securities. AFS SecuritiesThe following tables present the detail of our AFS securities, by position and collateral type, at June 30, 2025 and December 31, 2024.Table 9.2 – Carrying Value and Fair Value of AFS Securities by Type June 30, 2025(In Thousands)SeniorMezzanineSubordinateTotalAmortized cost$— $14,969 $77,435 $92,404 Gross unrealized gains— 33 27,216 27,249 Gross unrealized losses— — (4,315)(4,315)Allowance for credit losses— — (839)(839)Total Carrying Value$— $15,002 $99,497 $114,499 December 31, 2024(In Thousands)SeniorMezzanineSubordinateTotalAmortized cost$39,135 $31,250 $121,053