Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 255

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 255
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859 Net market valuation (losses) recorded on ABS Issued from HEI securitizations (1)(11,627)(18,845)Net market valuation (losses) recorded on non-controlling interests in HEI securitizations(7,573)(21,111)Other400 175 Total HEI (loss) income, net $(2,279)$35,696 

(1)Amount includes interest expense associated with ABS issued, which totaled $3 million and $9 million, for both the three and nine months ended September 30, 2025 and 2024, respectively. 

Note 11. Servicing Investments

Servicing Investments at September 30, 2025 and December 31, 2024 are summarized in the following table.Table 11.1 – Components of Servicing Investments(In Thousands)September 30, 2025December 31, 2024Servicer advance investments, at fair value$221,656 $233,820 Excess MSRs, at fair value30,044 32,274 MSRs, at fair value30,556 31,589 Total Servicing Investments$282,256 $297,683 We account for our Servicer advance investments, Excess MSRs and MSRs at fair value. Refer to Note 6 for further information on the inputs into the fair valuation of these components. Refer to Note 11 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding these components and related transactions.For the three months ended September 30, 2025 and 2024, income from Servicing investments included Other interest income of $7 million and $8 million, respectively, Investment fair value changes, net of negative $1 million and $4 million, respectively, and Servicing income, net of $1 million and $0.3 million, respectively. For the nine months ended September 30, 2025 and 2024, income from Servicing investments included Other interest income of $21 million and $24 million, respectively, Investment fair value changes, net of negative $6 million and positive $4 million, respectively, and Servicing income, net of $6 million and $8 million, respectively.

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REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONS