Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 120

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 120
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 and December 31, 2024, related to unconsolidated VIEs sponsored by Redwood and accounted for as sales.Table 16.2 – Unconsolidated VIEs Sponsored by Redwood(In Thousands)September 30, 2025December 31, 2024On-balance sheet assets, at fair value:Subordinate securities, classified as AFS$280,395 $91,221 Interest-only, senior and subordinate securities, classified as trading34,163 36,811 Mortgage servicing rights12,197 12,556 Strategic investments, equity method10,263 — Funding commitment (1)10,000 — Maximum loss exposure (2)$347,018 $140,588 (1)Represents Redwood’s agreement, entered into on September 30, 2025, to provide up to $35 million of capital support to a trust holding legacy unsecuritized bridge loans. We funded $10 million at closing, with up to $25 million remaining subject to specified portfolio triggers. Refer to Notes 8, 9, and 19 for additional information.

(2)Maximum loss exposure from our involvement with unconsolidated VIEs pertains to the carrying value of our securities and MSRs retained from these VIEs and represents estimated losses that would be incurred under severe, hypothetical circumstances, such as if the value of our interests and any associated collateral declines to zero. This does not include, for example, any potential exposure to representation and warranty claims associated with our initial transfer of loans into a securitization. 

Note 17. Asset-Backed Securities Issued

ABS issued represents securities issued by non-recourse securitization entities we consolidate under GAAP. The majority of our ABS issued is carried at fair value under the CFE election (see Note 16 for additional detail) with the remainder carried at amortized cost. The carrying values of ABS issued by our consolidated securitization entities at September 30, 2025 and December 31, 2024, along with other selected information, are summarized in the following table.Table 17.1 – Asset-Backed Securities IssuedSeptember 30, 2025UPBCarrying ValueWeighted Average Interest RateStated MaturitiesNumber of Series(Dollars in Thousands)Sequoia$13,316,632 $12,863,481 2.50