Company: RWT-PA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000930236-25-000020
Chunk: 163

Company: REDWOOD TRUST INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 163
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 the average length of maturity extensions granted on residential investor bridge loans was seven months and five months, respectively. 

We generally value delinquent residential investor loans at a dollar price that is informed by various market data, including the fair value of the collateral securing a loan, for which we typically receive third-party appraisals, as well as estimated sales costs. The amounts we may ultimately recover through the foreclosure of loans and the sale of the underlying collateral or through alternative strategies, such as through loan sales or discounted payoffs, could vary materially from our estimates and could have a material impact on our earnings in future periods.

We finance our residential investor bridge loans with a combination of recourse, non-marginable warehouse facilities, non-recourse, non-marginable facilities, and non-recourse securitization debt. At March 31, 2025, we had $705 million of debt incurred through warehouse facilities, which was secured by residential investor bridge loans with a fair value of $1.10 billion; and $708 million of securitization debt secured by $769 million of residential investor bridge loans, $35 million of restricted cash and $38 million of other assets. At March 31, 2025, the unpaid principal balance of bridge loans financed was $1.91 billion, of which $530 million was financed with non-recourse, non-marginable facilities, $621 million was financed with recourse, non-marginable facilities, and $760 million was financed through non-recourse CAFL bridge securitizations.

The following table provides the composition of residential investor bridge loans held-for-investment by product type as of March 31, 2025 and December 31, 2024. 

Table 15 – Residential Investor Bridge Loans Held-for-Investment - By Product/Strategy Type(In Thousands)March 31, 2025December 31, 2024BFR (1)$767,600 $290,097 SAB (2)291,777 761,558 Multifamily (3)744,498 808,392 Other4,730 4,750 Fair Value at End of Period$1,808,605 $1,864,797 

(1)    Includes loans to finance acquisition and/or stabilization of existing housing stock or to finance new construction of residential properties for rent.

(2)    Includes loans for light to moderate renovation of residential and small multifamily properties (generally less than 20 units).

(3)