Company: RWT-PA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000930236-25-000020
Chunk: 77

Company: REDWOOD TRUST INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 77
---
These liabilities are included in Accrued expenses and other liabilities on our consolidated balance  During the three months ended March 31, 2025, we elected the fair value option for $8 million of securities, $2.34 billion (principal balance) of residential consumer loans, and $461 million (principal balance) of residential investor loans. Additionally, during the three months ended March 31, 2025, we elected the fair value option for $2 million of newly originated HEI.    

18

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2025(Unaudited) Note 6. Fair Value of Financial Instruments - (continued)

Nonrecurring Fair ValuesWe measure the fair value of certain assets and liabilities on a nonrecurring basis when events or changes in circumstances indicate that the carrying value may be impaired. Adjustments to fair value generally result from the write-down of asset values due to impairment. REO in Other 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 15 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 securitized and unsecuritized residential consumer loans owned at March 31, 2025 and December 31, 2024.Table 7.1 – Classifications and Carrying Values of Residential Consumer LoansMarch 31, 2025Unsecuritized Jumbo LoansSecuritized Jumbo LoansSecuritized Re-Performing Loans(In Thousands)TotalHeld-for-sale at fair value$1,294,290 $— $— $1,294,290 Held-for-investment at fair value— 10,176,418 1,281,550 11,457,968 Total Residential Consumer Loans$1,294,290 $10,176,418 $1,281,550 $12,752,258 December 31, 2024Unsecuritized Jumbo LoansSecuritized Jumbo LoansSecuritized Re-Performing Loans(In Thousands)TotalHeld-for-sale at fair value$1,013,547