Company: RWT-PA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000930236-25-000007
Chunk: 80

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 16
Chunk 80
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11,489,844 $392,980 $13,030,899 (1)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations and Redwood Investments. For mortgage banking, also includes other derivative financial instruments such as loan purchase commitments and interest rate locks. (2)Net (Loss) by segment is also referred to as Segment Contribution.

F- 26

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024

Note 5. Mortgage Banking Activities, Net

The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income (loss) for the years ended December 31, 2024, 2023 and 2022.Table 5.1 – Mortgage Banking ActivitiesYears Ended December 31,(In Thousands)202420232022Sequoia Mortgage Banking Activities, Net:Changes in fair value of:Residential consumer loans, at fair value (1)$39,019 $42,976 $(131,675)Trading securities (2)41,173 (159)4,249 Risk management derivatives (3)(24,623)(17,908)100,713 Other income, net (4)2,010 2,873 5,431 Total Sequoia mortgage banking activities, net57,579 27,782 (21,282)CoreVest Mortgage Banking Activities, Net:Changes in fair value of:Residential investor term loans, at fair value11,692 16,500 (91,690)Residential investor bridge loans, at fair value3,767 5,704 2,679 Risk management derivatives (3)5,118 (914)56,731 Other income, net (4) (5)21,242 18,314 39,903 Total CoreVest mortgage banking activities, net41,819 39,604 7,623 Mortgage Banking Activities, Net$99,398 $67,386 $(13,659)(1)Includes changes in fair value for associated loan purchase commitments for residential consumer loans.(2)Represents fair value changes on trading securities that are being used as hedges to manage the mark-to-market risks associated with our Sequoia mortgage banking operations.(3)Represents market valuation changes of derivatives that were used to manage