Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 101

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 101
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 HEI at September 30, 2025 and December 31, 2024.Table 10.1 – Home Equity Investments(In Thousands)September 30, 2025December 31, 2024Unsecuritized HEI$134,156 $257,315 HEI held at consolidated HEI securitization entities192,067 332,470 Total Home Equity Investments at fair value (1)$326,223 $589,785 (1)As of September 30, 2025, balance includes $315 million of third-party originated HEI included in our Legacy Investments segment.The following table details our HEI activity during the three and nine months ended September 30, 2025 and 2024. Changes in the value of HEI during the nine months ended September 30, 2025 are driven by incremental fair value adjustments, reflecting the sales on HEI held in our Legacy Investments segment during the third quarter of 2025. Table 10.2 – Activity of HEIThree Months Ended September 30,20252024(In Thousands)Unsecuritized HEISecuritized HEIUnsecuritized HEISecuritized HEIFair value of HEI purchased and originated$2,926 $— $460 $— Fair value of HEI transferred148,963 (148,963)— — Fair value of HEI sold to third party262,447 — — — Net market valuation gains recorded 198 2,960 5,812 19,408 Nine Months Ended September 30,20252024(In Thousands)Unsecuritized HEISecuritized HEIUnsecuritized HEISecuritized HEIFair value of HEI purchased and originated$8,986 $— $1,066 $— Fair value of HEI transferred148,963 (148,963)— — Fair value of HEI sold to third party262,447 — — — Net market valuation (losses) gains recorded (6,972)23,493 23,618 51,861 

35

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025(Unaudited) Note 10. Home Equity Investments (HEI) - (continued)

The following table provides the components of HEI