Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 95

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 95
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. Nonaccrual LoansInterest income is accrued on loans in the period the coupon interest is contractually earned until such time a loan is placed on non-accrual status.A loan is generally placed on non-accrual status when it is probable that all principal and interest due under the contractual terms will not be collected and a loan is past due more than 90 days. At the time a loan is placed on non-accrual status, all previously accrued but uncollected interest is written off against interest income and interest subsequently collected is recognized on a cash basis when it is received. A loan remains on non-accrual status until the loan balance is deemed collectible or until such time the loan qualifies to be placed back on accrual status. Generally, a loan is placed back on accrual status when the loan becomes contractually current or the collection of past due and future payments is reasonably assured either through reinstatement by the borrower, recoverability on the estimated net equity in the underlying real estate property or both.The following table presents the characteristics of loans on nonaccrual status by segment and strategy type at September 30, 2025, including the fair value of such loans and the related amounts of non-accrual of contractual coupon and deferred interest. Table 8.7 – Nonaccrual Loans Characteristics by Segment/Strategy TypeSeptember 30, 2025Non-Accrual of Contractual Coupon InterestNon-Accrual of Deferred Interest Only Total Unpaid Principal BalanceFair Value(Dollars in Thousands)Legacy InvestmentsMultifamily (1)$193,759 $104,216 $297,975 $257,895 Renovate / Build for Rent ("BFR") (2)15,856 24,917 40,773 32,308 Single Asset Bridge ("SAB") (3)670 — 670 637 Other6,247 — 6,247 3,679 Redwood InvestmentsRenovate / Build for Rent ("BFR") (2)4,817 — 4,817 4,841 Single Asset Bridge ("SAB") (3)7,787 — 7,787 7,751 Total Non-Accrual Loans$229,136 $129,133 $358,269 $307,111 (1)Includes loans for predominantly light to moderate rehabilitation projects on multifamily properties.(2)Includes loans to finance