Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 188

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 188
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17,806 Net market valuation gains recorded on Securitized HEI20,533 32,453 Net market valuation (losses) recorded on ABS Issued from HEI securitizations (1)(9,031)(12,881)Net market valuation (losses) recorded on non-controlling interests in HEI securitizations(7,342)(12,508)Other96 99 Total HEI (loss) income, net$(2,914)$24,969 

(1)Amount includes interest expense associated with ABS issued, which totaled $3 million and $6 million, for the three and six months ended June 30, 2025 and 2024, respectively. 

We finance a portion of our unsecuritized HEI through a short-term, recourse, non-marginable warehouse facility. At June 30, 2025, there was $90 million of debt outstanding on this warehouse facility, secured by HEI with a fair value of $171 million. At June 30, 2025, for GAAP purposes, we consolidated $341 million of HEI, $206 million of ABS and $90 million of third-party non-controlling interests held in our consolidated HEI securitization entities, for a net economic interest of $51 million. 

Additional details on our HEI are included in Note 10 of our Notes to Consolidated Financial Statements, included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

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Legacy Unsecuritized Bridge and Term Loan Portfolios

The following table provides the activity of the legacy unsecuritized bridge and term loans during the three and six months ended June 30, 2025. 

Table 17 – Legacy Unsecuritized Bridge and Term Loan Portfolios - Activity

Three Months Ended June 30, 2025Six Months Ended June 30, 2025(in thousands)Fair value at beginning of period$1,062,363 $1,058,612 Advances (1)107,926 260,712 Acquisitions36,236 43,037 Transfers between segments(55,423)(151,671)Sales(73,803)(78,658)Transfers to REO(5,469)(7,572)Principal repayments(66,489)(100,455)Changes in fair value, net(69,395)(88,