Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 284

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 284
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 for potential obligations arising from representation and warranty violations related to residential consumer loans we have sold to securitization trusts or third parties, residential investor loans we have sold to third parties, and conforming residential consumer loans that we have purchased from third parties. We do not originate residential consumer loans and we believe the initial risk of loss due to loan repurchases (i.e., due to a breach of representations and warranties) would generally be a contingency to the companies from whom we acquired the loans, as applicable. However, in some cases, for example, where loans were acquired from companies that have since become insolvent, repurchase claims may result in our being liable for a repurchase obligation. At September 30, 2025, we were not aware of any material unsettled repurchase claims for these groups of sold loans. 

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REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025(Unaudited) Note 19. Commitments and Contingencies - (continued)

For residential investor bridge loans sold to a joint venture, we record estimated losses on loans we are required to repurchase through mortgage banking activities, net as a component of the loan fair value. During the three months ended September 30, 2025, the impact of residential investor bridge loan repurchased was not material. At September 30, 2025, this residential investor bridge loan was classified as held-for-sale on our consolidated balance sheets.Loss Contingencies — Litigation, Claims and DemandsThere is no significant update regarding the litigation matters described in Note 18 within the financial statements included in Redwood’s Annual Report on Form 10-K for the year ended December 31, 2024 under the heading “Loss Contingencies - Litigation, Claims and Demands.” For additional information related to our commitments and contingencies, see Note 18 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024.

Note 20. Equity

The following tables provides a summary of changes to accumulated other comprehensive income (loss) by component for three and nine months ended September 30, 2025 and 2024. Table 20.1 – Changes in Accumulated Other Comprehensive Income (Loss) by ComponentThree Months Ended September 30, 2025Three Months Ended September 30, 2024(In Thousands)AFS SecuritiesInterest Rate Ag