Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 81

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 81
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 5.1 – Mortgage Banking ActivitiesThree Months Ended June 30,Six Months Ended June 30,(In Thousands)2025202420252024Sequoia Mortgage Banking Activities, Net:Changes in fair value of:Residential consumer loans, at fair value (1)$15,095 $14,305 $45,694 $10,451 Trading securities (2)(38,645)2,611 (67,972)11,122 Risk management derivatives (3)47,028 (12,019)67,815 (8,930)Other income, net (4)921 1,348 1,013 1,429 Total Sequoia mortgage banking activities, net24,399 6,245 46,550 14,072 CoreVest Mortgage Banking Activities, Net:Changes in fair value of:Residential investor term loans, at fair value (1)4,560 6,068 11,490 5,772 Residential investor bridge loans, at fair value3,573 1,108 4,605 2,054 Risk management derivatives (3)1,107 (368)(1,838)2,141 Other income, net (4) (5)7,218 5,871 13,103 9,441 Total CoreVest mortgage banking activities, net16,458 12,679 27,360 19,408 Mortgage Banking Activities, Net$40,857 $18,924 $73,910 $33,480 (1)Includes changes in fair value for associated loan purchase commitments for residential consumer loans and associated interest rate lock commitments for residential investor term loans. (2)Represents fair value changes on trading securities that are being used as hedges to manage the mark-to-market risks associated with our Sequoia mortgage banking operations.(3)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations and other derivative financial instruments such as loan purchase commitments and interest rate locks. (4)Amounts in this line item include other fee income from loan acquisitions, and provisions for repurchases, presented net.(5)Amounts in this line item include other fee income from loan originations.

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REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2025(Unaud