Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 159

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 159
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 30, 2025September 30, 2024ChangeSegment Contribution from:Sequoia Mortgage Banking$34,319 $22,154 $12,165 $82,289 $39,697 $42,592 CoreVest Mortgage Banking3,492 6,135 (2,643)12,646 769 11,877 Redwood Investments10,340 11,892 (1,552)47,197 100,887 (53,690)Legacy Investments(22,230)(103,989)81,759 (128,317)13,495 (141,812)Corporate/Other(33,625)(34,684)1,059 (103,864)(94,226)(9,638)Net (Loss) Income$(7,704)$(98,492)$90,788 $(90,049)$60,622 $(150,671)

The sections that follow provide further detail on our business segments and their results of operations for the three and nine months ended September 30, 2025, the immediate preceding quarter ended June 30, 2025, and year-to-date period ended September 30, 2024. 

Corporate/Other

Net expenses from Corporate/Other remained consistent quarter over quarter, with no material change between the three months ended September 30, 2025 and June 30, 2025. For the nine months ended September 30, 2025, compared to the same period in 2024, net expenses increased by $10 million. The increase in the nine month periods primarily reflect higher compensation and related costs associated with increased headcount supporting growth of new platforms such as Aspire and our expanded small balance loan focus within CoreVest, higher portfolio management expenses related to legacy loan resolutions, and higher corporate interest expense driven by higher corporate debt balances and interest rates on existing corporate debt during 2025.

Sequoia Mortgage Banking Segment

This segment consists of a mortgage loan conduit that acquires residential consumer loans from third-party originators for subsequent sale to whole loan buyers, securitization through our SEMT® (Sequoia) private-label securitization program, or transfer into our Redwood Investments portfolio. Subordinate securities that we retain from our Sequoia securitizations (many of which we consolidate for GAAP purposes) are transferred to and held in our Redwood Investments segment. We typically acquire