Company: RWT-PA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000930236-25-000007
Chunk: 322

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 322
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 for a review of risk factors that may impact our ability to realize our target returns.

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lying homes. For the term loans underlying our consolidated CAFL securities, 90 day+ delinquencies increased steadily throughout 2024 but remained at an overall low level relative to modeled expectations.

With a weighted average quarter-end carrying value of 67 cents to each one dollar of face value, we estimate our securities portfolio had approximately $2.18 per common share of net discount to par at quarter end. We believe continued stable credit performance in our underlying securities portfolio, combined with firming of risk sentiment and a return to more normalized prepayment speeds, could contribute to our ability to realize potential upside in book value over time, reversing unrealized losses taken over the past few years that were largely driven by technical spread widening. See "Cautionary Statement" above within this MD&A for a review of risk factors that may impact our ability to realize this potential upside in book value.

Residential Investor Bridge Loans Held-for-Investment

The following table provides the activity of residential investor bridge loans held-for-investment during the years ended December 31, 2024 and 2023. 

Table 13 – Residential Investor Bridge Loans Held-for-Investment - ActivityYears Ended December 31,(In Thousands)20242023Fair value at beginning of year$2,068,323 $2,023,529 Acquisitions15,677 — Sales(94,339)(7,460)Transfers between portfolios (1)495,242 922,903 Consolidation of securitized CAFL bridge loans (2)298,553 — Transfers to REO(11,085)(93,797)Principal repayments(876,381)(739,788)Changes in fair value, net(31,193)(37,064)Fair Value at End of Year$1,864,797 $2,068,323 

(1)We originate residential investor bridge loans at our TRS and transfer a portion of them to our REIT that we intend to hold for investment. Origination fees and any fair value changes on these loans prior to transfer are recognized within Mortgage banking activities, net on our Consolidated statements of income (loss). Once the loans are transferred to our REIT, they are classified as held-for-investment, with subsequent fair value changes generally recorded through Investment fair value changes, net on our consolidated statements of income.

(2)In the fourth quarter of 202