Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 95

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 95
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 loans with original maturities of three, five, seven, or ten years. The outstanding residential investor bridge loans held-for-investment at June 30, 2025 were first-lien, interest-only loans with original maturities of 8 to 36 months and were comprised of 43% one-month SOFR-indexed adjustable-rate loans, and 57% fixed-rate loans.The change in fair value of residential investor loans from December 31, 2024 to June 30, 2025 reflects both realized and anticipated changes in portfolio performance and composition. The overall decline in fair value was primarily attributable to the 

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REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2025(Unaudited) Note 8. Residential Investor Loans - (continued)

unsecuritized residential investor bridge loan portfolio, which decreased to $949 million at June 30, 2025 from $1.12 billion at December 31, 2024. This decline was driven by fair value losses recognized during the period, which was the result of elevated delinquencies—particularly among 2021 and 2022 vintage bridge loans—and continued strategic sales and runoff of these loans as part of the Company's accelerated repositioning strategy.Fair value changes also reflect the impact of loan modifications during the period, particularly extensions and interest deferrals, which may have resulted in downward adjustments to loan valuations. These modifications were predominantly related to bridge loans with underlying project delays, borrower financial stress, or market-driven refinancing challenges. The fair value impact of such modifications is incorporated into the Company’s valuation models and contributed to the overall movement in loan values during the period. Refer to the Loan Modifications section of this footnote for further details on these modifications.At June 30, 2025, we had $435 million in commitments to fund additional advances on existing residential investor bridge loans. See Note 19 for additional information on these commitments. During the three and six months ended June 30, 2025, we sold $151 million and $302 million of residential investor bridge loans, net of $16 million and $32 million of construction draws to our joint ventures, respectively. See Note 12 for additional information on these joint ventures.During the three and six months ended June 30, 2025 and 2024, mortgage banking activities, net were $16 million and $27 million, and $13 million and $19