Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 100

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 100
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— $— Multifamily96,658 543,172 — — BridgeRenovate / Build for Rent ("BFR") (1)— — 442,211 368,583 Single Asset Bridge ("SAB") (2)— — 38,001 411,342 Multifamily (3)— — 544,605 147,191 Third-Party Originated— — 31,480 1,055 Total Residential Investor Loans$200,916 $2,399,197 $1,056,297 $928,171 (1)Includes loans to finance acquisition and/or stabilization of existing housing stock or to finance new construction of residential properties for rent.(2)Includes loans for light to moderate renovation of residential and small multifamily properties (generally less than 20 units).(3)Includes loans for predominantly light to moderate rehabilitation projects on multifamily properties.

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REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2025(Unaudited) Note 8. Residential Investor Loans - (continued)

Loan ModificationsWe may amend or modify a loan depending on the loan's specific facts and circumstances. These loan modifications typically include amendments and restructuring and include terms such as additional time for the borrower to refinance or sell the collateral property, interest rate reductions, and/or deferral of scheduled principal and/or interest payments. In some instances, a loan amendment or restructuring may bring the loan out of delinquent status. In other instances, including in the case of Build for Rent ("BFR") loans, a loan modification may amend the project's underlying budget (including allocation of hard/soft costs, interest reserves, and other items) or construction or completion milestones, if warranted, based on progress versus the initial budget. Because they finance the construction of rental housing, many BFR projects do not generate net operating income until the later stages of the loan term. As such, BFR loans are sized to include allocations for interest expense as well as construction costs and other standard budget items. We utilize a rigorous and consistently implemented fair value process when evaluating these loans, which involves management’s review of updated appraisals, collateral performance, sales cost estimates, and independent market data when available. This approach, conducted in accordance with GAAP, is designed to ensure valuations reflect current conditions and project-specific risks. The actual amounts ultimately recovered—whether through foreclosure