Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 250

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 250
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,989 146,716 Guarantee obligations (2)32,053 2,770 2,806 3,204 (1)Residential investor loans reported at lower of cost or market for which the carrying value approximates fair value at June 30, 2025.(2)These liabilities are included in Accrued expenses and other liabilities on our consolidated balance 

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REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2025(Unaudited) Note 6. Fair Value of Financial Instruments - (continued)

 During the three and six months ended June 30, 2025, we elected the fair value option for $13 million and $21 million of securities, $2.98 billion and $5.31 billion (principal balance) of residential consumer loans, and $432 million and $893 million (principal balance) of residential investor loans. Additionally, during the three and six months ended June 30, 2025, we elected the fair value option for $4 million and $6 million of newly originated HEI.Nonrecurring Fair ValuesWe measure the fair value of certain assets and liabilities on a nonrecurring basis when events or changes in circumstances indicate that the carrying value may be impaired. Adjustments to fair value generally result from the write-down of asset values due to impairment. REO in Other Assets and Liabilities are classified as Level 3 in the fair value hierarchy based upon fair value determinations using appraisals, broker price opinions, comparable properties or other indications of value.Refer to Note 15 for further information on our REO.

Note 7. Residential Consumer Loans

We acquire residential consumer loans from third-party originators and may sell or securitize these loans and hold a retained portion for investment.The following table summarizes the classifications and carrying values of the securitized and unsecuritized residential consumer loans owned at June 30, 2025 and December 31, 2024.Table 7.1 – Classifications and Carrying Values of Residential Consumer LoansJune 30, 2025Unsecuritized Jumbo LoansSecuritized Jumbo LoansSecuritized Re-Performing Loans(In Thousands)TotalHeld-for-sale at fair value$1,350,782 $— $1,264,049 $2,614,831 Held-for-investment at fair value— 11,587,062