Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 245

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 245
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 the UPB of residential investor loans recorded on our consolidated balance sheets at September 30, 2025 by collateral/strategy type.Table 8.5 – Residential Investor Loans Collateral/Strategy TypeSeptember 30, 2025Unsecuritized TermSecuritized TermUnsecuritized BridgeSecuritized Bridge(Dollars in Thousands)TermSingle-family rental$106,597 $1,751,988 $— $— Multifamily57,086 499,108 — — BridgeRenovate / Build for Rent ("BFR") (1)— — 196,810 316,490 Single Asset Bridge ("SAB") (2)— — 61,259 488,545 Multifamily (3)— — 300,100 111,901 Third-Party Originated— — 106,871 1,055 Total Residential Investor Loans$163,683 $2,251,096 $665,040 $917,991 (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 September 30, 2025(Unaudited) Note 8. Residential Investor Loans - (continued)

Loan ModificationsFor the three months ended September 30, 2025, consistent with our strategic transition from non-core legacy assets, we have adopted a more accelerated approach to resolving modified and legacy loans, accelerating the wind-down of underperforming or non-core legacy assets to proactively reduce long-term exposure. This includes pursuing loan and REO sales, executing structured exits, and, where necessary, accelerating foreclosure or liquidation processes on assets with limited workout potential. 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 that valuations reflect current conditions and project-specific risks. The actual amounts ultimately recovered—whether through foreclosure, collateral sale, or alternative resolutions, such as discounted payoffs or loan sales—