Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 42

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 42
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, 2024. At June 30, 2025, our re-performing loan securities were financed with $131 million of non-recourse securitization debt (ABS issued). 

Table 14 – Activity of Securities Retained from Consolidated Re-Performing SecuritiesThree Months EndedSix Months Ended(In Thousands)June 30, 2025June 30, 2025Beginning fair value$263,768 $241,765 Effect of principal payments (1)(6,928)(13,906)Change in fair value, net(299)28,682 Ending Fair Value$256,541 $256,541 

(1)The effect of principal payments reflects the change in fair value due to principal payments, which is calculated as the cash principal received on a given security during the period multiplied by the prior quarter ending price or acquisition price for that security.

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Home Equity Investments

In the second quarter of 2025, we began reporting our third-party originated HEI portfolio as part of our Legacy Investments segment, as substantial portion of these HEI investments are expected to be sold or disposed of as part of an accelerated strategic repositioning of our business model. At June 30, 2025, $238 million of unsecuritized HEI and $341 million of securitized HEI were included in the Legacy Investments segment, as presented in the table below.

Table 15 – HEI at Legacy Investments

(In Thousands)June 30, 2025December 31, 2024Unsecuritized HEI$238,139 $255,159 HEI held at consolidated HEI securitization entities341,281 332,470 Total Home Equity Investments at fair value$579,420 $587,629 

The following table provides the components of HEI income, net at Legacy Investments for the three and six months ended June 30, 2025 and 2024.

Table 16 – Components of HEI Income, net at Legacy InvestmentsThree Months Ended June 30,(In Thousands)20252024Net market valuation (losses) gains recorded on Unsecuritized HEI$(14,306)$11,663 Net market valuation gains recorded on Securitized HEI8,621 17,029 Net market valuation (losses) recorded on ABS Issued from HEI securitizations (1)(5,262)(5,472)Net market valuation (