Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 177

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 177
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 million investment fair value change, reflecting adjustments associated with completing the transfer of a portfolio of unsecuritized bridge loans and REO totaling $484 million in fair value to the Legacy Trust. 

Investments Detail and Activity

The following table presents a balance sheet summary for our Legacy Investments segment as of September 30, 2025 and June 30, 2025. 

Table 13 – Legacy Investments Balance Sheet Summary

(In Thousands)September 30, 2025June 30, 2025ChangeLegacy Unsecuritized Bridge Loans$441,359 $935,946 $(494,587)Home Equity Investments (1)147,847 289,545 (141,698)AFS Real Estate Security (2)182,006 — 182,006 Residential re-performing loan securities (SLST) (3)254,322 256,541 (2,219)Other Assets119,042 174,316 (55,274)Economic Value of Legacy Investments1,144,576 1,656,348 (511,772)Impact of Consolidation, net1,160,603 1,297,383 (136,780)Total Assets$2,305,179 2953731000$2,953,731 $(648,552)

(1)At September 30, 2025 and June 30, 2025, represents third-party originated HEI at Redwood, as well as our net investment HEI securitization entities.

(2)On September 30, 2025, we transferred a portfolio totaling $484 million in fair value of legacy unsecuritized bridge loans and REO assets to the Legacy Trust and retained a $182 million subordinate beneficial interest in the Legacy Trust. The beneficial interest represents our right to residual cash flows from the Legacy Trust after payment of senior financing and preferred interests and is recorded as an AFS security, measured at fair value and classified as a Level 3 asset. See further information in Note 9 of the Notes to Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q. 

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Footnotes to table 13 continued 

(3)Residential re-performing loan securities (SLST) reflects the fair value of the securities we retained from our consolidated Freddie Mac SLST securitization entities. We sold these securities in October 2025. See further