Company: RWT-PA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000930236-25-000007
Chunk: 93

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 16
Chunk 93
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 Assets and Liabilities are classified as Level 3 in the fair value hierarchy based upon fair value determinations using appraisals, broker price opinions, comparable properties or other indications of value.Refer to Note 14 for further information on our REO.

Note 7. Residential Consumer Loans

We acquire residential consumer loans from third-party originators and may sell or securitize these loans or hold them for investment. The following table summarizes the classifications and carrying values of the residential consumer loans owned at Redwood, consolidated  Sequoia and Freddie Mac SLST entities at December 31, 2024 and 2023.

F- 36

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024Note 7. Residential Consumer Loans - (continued)

Table 7.1 – Classifications and Carrying Values of Residential Consumer LoansDecember 31, 2024Freddie Mac(In Thousands)RedwoodSequoiaSLSTTotalHeld-for-sale at fair value$1,013,547 $— $— $1,013,547 Held-for-investment at fair value— 8,819,554 1,244,722 10,064,276 Total Residential Consumer Loans$1,013,547 $8,819,554 $1,244,722 $11,077,823 December 31, 2023Freddie Mac(In Thousands)RedwoodSequoiaSLSTTotalHeld-for-sale at fair value$911,192 $— $— $911,192 Held-for-investment at fair value— 4,780,203 1,359,242 6,139,445 Total Residential Consumer Loans$911,192 $4,780,203 $1,359,242 $7,050,637 At December 31, 2024, we owned mortgage servicing rights associated with $1.0 billion (principal balance) of residential consumer loans owned at Redwood that were purchased from third-party originators. The value of these MSRs is included in the carrying value of the associated loans on our consolidated balance sheets. We contract with licensed sub-servicers that perform servicing functions for these loans. Residential Consumer Loans Held-for-SaleThe following table summarizes the characteristics of residential consumer loans held-for-sale at December 31, 2024 and 2023.Table