Company: RWT-PA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000930236-25-000020
Chunk: 231

Company: REDWOOD TRUST INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 231
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IES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2025(Unaudited) 

Note 11. Servicing Investments

Servicing Investments at March 31, 2025 and December 31, 2024 are summarized in the following table.Table 11.1 – Components of Servicing Investments(In Thousands)March 31, 2025December 31, 2024Servicer advance investments, at fair value$234,423 $233,820 Excess MSRs, at fair value31,084 32,274 MSRs, at fair value32,783 31,589 Total Servicing Investments$298,290 $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 March 31, 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 $3 million and negative $2 million, respectively, and Servicing income, net of $3 million and $4 million, respectively.

Note 12. Strategic Investments

Strategic Investments at March 31, 2025 and December 31, 2024 are summarized in the following table.Table 12.1 – Components of Strategic Investments(In Thousands)March 31, 2025December 31, 2024Strategic investments, equity method$54,963 $48,767 Strategic investments, measurement alternative26,446 25,896 Strategic investments, at fair value3,460 3,460 Total Strategic Investments$84,869 $78,123 Income from Strategic Investments for the three months ended March 31, 2025 and 2024 are summarized in the following table.Table 12.2 – Components of Income From Strategic Investments, netThree Months EndedThree Months Ended(In Thousands)March 31, 2025March 31, 2024Other income (loss), net (1)$1,179 $(944)Investment fair value changes, net (2)(