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Business Purpose Loans
12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Business Purpose Loans Residential Loans
We acquire residential loans from third-party originators and may sell or securitize these loans or hold them for investment. The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at December 31, 2022 and 2021.
Table 6.1 – Classifications and Carrying Values of Residential Loans
December 31, 2022LegacySequoiaFreddie Mac
(In Thousands)RedwoodSequoiaSLSTTotal
Held-for-sale at fair value$780,781 $— $— $— $780,781 
Held-for-investment at fair value— 184,932 3,190,417 1,457,058 4,832,407 
Total Residential Loans$780,781 $184,932 $3,190,417 $1,457,058 $5,613,188 
December 31, 2021LegacySequoiaFreddie Mac
(In Thousands)RedwoodSequoiaSLSTTotal
Held-for-sale at fair value$1,845,282 $— $— $— $1,845,282 
Held-for-investment at fair value— 230,455 3,628,465 1,888,230 5,747,150 
Total Residential Loans$1,845,282 $230,455 $3,628,465 $1,888,230 $7,592,432 

At December 31, 2022, we owned mortgage servicing rights associated with $803 million (principal balance) of residential loans owned at Redwood that were purchased from third-party originators. The value of these MSRs is included in the carrying value of the associated loans on our consolidated balance sheets. We contract with licensed sub-servicers that perform servicing functions for these loans.
Residential Loans Held-for-Sale
At Fair Value
The following table summarizes the characteristics of residential loans held-for-sale at December 31, 2022 and 2021.
Table 6.2 – Characteristics of Residential Loans Held-for-Sale
(Dollars in Thousands)December 31, 2022December 31, 2021
Number of loans994 2,196 
Unpaid principal balance$822,063 $1,813,865 
Fair value of loans$780,781 $1,845,282 
Market value of loans pledged as collateral under short-term borrowing agreements$775,545 $1,838,797 
Weighted average coupon5.12 %3.27 %
Delinquency information
Number of loans with 90+ day delinquencies
Unpaid principal balance of loans with 90+ day delinquencies$208 $2,923 
Fair value of loans with 90+ day delinquencies$170 $2,304 
Number of loans in foreclosure— — 
The following table provides the activity of residential loans held-for-sale during the years ended December 31, 2022 and 2021.
Table 6.3 – Activity of Residential Loans Held-for-Sale
Year Ended December 31,
(In Thousands)20222021
Principal balance of loans acquired (1)
$3,704,196 $12,916,155 
Principal balance of loans sold3,858,647 8,244,221 
Principal balance of loans transferred to HFI687,192 2,957,694 
Net market valuation (losses) gains recorded (2)
(93,843)76,144 
(1)For the years ended December 31, 2022 and 2021, includes $102 million and $200 million of loans acquired through calls of three and seven seasoned Sequoia securitizations, respectively.
(2)Net market valuation gains (losses) on residential loans held-for-sale are recorded primarily through Mortgage banking activities, net on our consolidated statements of income (loss).
Residential Loans Held-for-Investment at Fair Value
We invest in residential subordinate securities issued by Legacy Sequoia, Sequoia and Freddie Mac SLST securitization trusts and consolidate the underlying residential loans owned by these entities for financial reporting purposed in accordance with GAAP. The following tables summarize the characteristics of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at December 31, 2022 and 2021.
Table 6.4 – Characteristics of Residential Loans Held-for-Investment
December 31, 2022LegacySequoiaFreddie Mac
(Dollars in Thousands)SequoiaSLST
Number of loans1,304 4,624 10,882 
Unpaid principal balance$204,404 $3,847,091 $1,719,236 
Fair value of loans (2)
$184,932 $3,190,417 $1,457,058 
Weighted average coupon4.51 %3.25 %4.50 %
Delinquency information
Number of loans with 90+ day delinquencies (1)
30 10 1,211 
Unpaid principal balance of loans with 90+ day delinquencies$6,824 $7,799 $209,397 
Fair value of loans with 90+ day delinquenciesN/AN/AN/A
Number of loans in foreclosure11 427 
Unpaid principal balance of loans in foreclosure$1,166 $4,654 $72,440 
Table 6.4 – Characteristics of Residential Loans Held-for-Investment (continued)
December 31, 2021LegacySequoiaFreddie Mac
(Dollars in Thousands)SequoiaSLST
Number of loans1,583 4,300 11,986 
Unpaid principal balance$264,057 $3,605,469 $1,932,241 
Fair value of loans (2)
$230,455 $3,628,465 $1,888,230 
Weighted average coupon1.54 %3.14 %4.51 %
Delinquency information
Number of loans with 90+ day delinquencies (1)
32 18 1,208 
Unpaid principal balance of loans with 90+ day delinquencies$7,482 $15,124 $212,961 
Fair value of loans with 90+ day delinquenciesN/AN/AN/A
Number of loans in foreclosure10 241 
Unpaid principal balance of loans in foreclosure$2,188 $1,624 $43,637 
(1)For loans held at consolidated entities, the number of loans greater than 90 days delinquent includes loans in foreclosure.
(2)The fair value of the loans held by consolidated entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities.
For loans held at our consolidated Legacy Sequoia, Sequoia, and Freddie Mac SLST entities, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines, and are recorded in Investment fair value changes, net on our consolidated statements of income (loss). The following table provides the activity of residential loans held-for-investment at consolidated entities during the years ended December 31, 2022 and 2021.
Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities
Year Ended December 31, 2022Year Ended December 31, 2021
LegacyFreddie MacLegacyFreddie Mac
(In Thousands)SequoiaSequoiaSLSTSequoiaSequoiaSLST
Fair value of loans transferred from HFS to HFI (1)
N/A$684,491 N/AN/A$3,035,100 N/A
Net market valuation gains (losses) recorded12,956 (675,659)(215,687)12,125 (66,727)(14,735)
(1)Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations.
REO
See Note 13 for detail on residential loans transferred to REO during 2022.
Residential Loan Characteristics
The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2022 and 2021.
Table 6.6 – Geographic Concentration of Residential Loans
 December 31, 2022
Geographic Concentration
(by Principal)
Held-for-SaleHeld-for-
Investment at Legacy Sequoia
Held-for-
Investment at Sequoia
Held-for-Investment at Freddie Mac SLST
California26 %18 %35 %14 %
Texas12 %%12 %%
Washington11 %%%%
Colorado%%%%
Florida%13 %%10 %
New York%11 %%11 %
New Jersey%%%%
Illinois%%%%
Maryland%%%%
Ohio— %%— %%
Other states (none greater than 5%)27 %34 %30 %40 %
Total100 %100 %100 %100 %
 December 31, 2021
Geographic Concentration
(by Principal)
Held-for-SaleHeld-for-
Investment at Legacy Sequoia
Held-for-
Investment at Sequoia
Held-for-Investment at Freddie Mac SLST
California29 %18 %35 %14 %
Texas11 %%12 %%
Washington%%%%
Colorado%%%%
Florida%14 %%10 %
Arizona%%%%
New York%11 %%10 %
New Jersey%%%%
Illinois%%%%
Maryland%%%%
Ohio— %%— %%
Other states (none greater than 5%)28 %33 %26 %39 %
Total100 %100 %100 %100 %
The following table displays the loan product type and accompanying loan characteristics of residential loans recorded on our consolidated balance sheets at December 31, 2022 and 2021.
Table 6.7 – Product Types and Characteristics of Residential Loans
December 31, 2022
(In Thousands)
Loan BalanceNumber of
Loans
Interest
 Rate(1)
Maturity
Date
Total
Principal
30-89
Days
DQ
90+
Days
DQ
Held-for-Sale:
Hybrid ARM loans
$— to$2506.00 %to6.00%2032-11-2032-11$41 $— $— 
$501 to$7503.63 %to6.50%2042-04-2052-123,590 — — 
$751 to$1,0004.25 %to4.25%2042-06-2042-06772 — — 
4,403 — — 
Fixed loans
$— to$25025 3.13 %to5.63%2026-04-2052-064,088 — 208 
$251 to$500138 3.38 %to8.25%2026-12-2052-1257,202 444 — 
$501 to$750283 2.88 %to8.25%2038-09-2052-12186,202 537 — 
$751 to$1,000286 2.75 %to9.25%2042-04-2053-01248,246 1,726 — 
over$1,000254 2.88 %to9.13%2042-03-2053-01321,922 2,575 — 
986 817,660 5,282 208 
Total Held-for-Sale994 $822,063 $5,282 $208 
Held-for-Investment at Legacy Sequoia:
ARM loans:
$— to$2501,070 1.25 %to6.13%2022-06-2035-11$93,286 $3,792 $2,607 
$251 to$500158 1.25 %to6.13%2027-04-2035-1154,904 1,232 1,649 
$501 to$75047 1.63 %to5.38%2027-05-2035-0728,796 — 1,796 
$751 to$1,00013 1.63 %to6.00%2028-03-2036-0311,047 929 772 
over$1,0001.63 %to5.63%2028-06-2035-0414,340 1,048 — 
1,297 202,373 7,001 6,824 
Hybrid ARM loans:
$— to$2504.63 %to4.63%2033-09-2033-09610 — — 
$251 to$5002.88 %to4.63%2033-07-2034-031,421 — — 
2,031 — — 
Total HFI at Legacy Sequoia:1,304 $204,404 $7,001 $6,824 
Table 6.7 – Product Types and Characteristics of Residential Loans (continued)
December 31, 2022
(In Thousands)
Loan BalanceNumber of
Loans
Interest
 Rate(1)
Maturity
Date
Total
Principal
30-89
Days
DQ
90+
Days
DQ
Held-for-Investment at Sequoia:
Hybrid ARM loans
$251 to$5003.50 %to3.63%2047-04-2049-06798 — — 
$501 to$7503.38 %to4.38%2044-04-2049-085,370 — 637 
$751 to$1,0004.00 %to5.63%2047-07-2048-013,294 — — 
over$1,0004.00 %to5.00%2045-07-2049-043,833 — — 
17 13,295 — 637 
Fixed loans:
$— to$25052 2.63 %to5.25%2029-04-2051-12$9,145 $— $— 
$251 to$500146 2.38 %to6.75%2038-04-2051-1261,208 2,348 877 
$501 to$7501,884 2.13 %to6.38%2031-04-2052-011,211,531 7,064 1,840 
$751 to$1,0001,600 2.13 %to6.00%2036-12-2052-011,396,210 2,425 1,849 
over$1,000925 1.88 %to5.88%2036-07-2052-011,155,702 3,685 2,596 
4,607 3,833,796 15,522 7,162 
4,624 $3,847,091 $15,522 $7,799 
Held-for-Investment at Freddie Mac SLST:
Fixed loans:
$— to$2508,979 2.00 %to11.00%2022-122062-11$1,105,116 $197,718 $120,210 
$251 to$5001,867 2.00 %to7.75%2036-032062-09593,781 103,339 80,993 
$501 to$75035 2.00 %to5.50%2045-022059-0119,328 1,038 7,184 
over$1,0004.00 %to4.00%2056-032056-031,010 — 1,010 
Total Held-for-Investment10,882 $1,719,236 $302,095 $209,397 
Table 6.7 – Product Types and Characteristics of Residential Loans (continued)
December 31, 2021
(In Thousands)
Loan BalanceNumber of
Loans
Interest
 Rate(1)
Maturity
Date
Total
Principal
30-89
Days
DQ
90+
Days
DQ
Held-for-Sale:
Hybrid ARM loans
$— to$2501.88 %to1.88%2032-11-2032-11$45 $— $— 
$251 to$5003.25 %to3.50%2042-08-2042-091,880 — — 
$501 to$75018 2.38 %to3.63%2042-04-2052-0111,872 — — 
$751 to$1,00014 2.50 %to4.00%2042-06-2052-0112,288 — — 
over$1,00020 2.38 %to3.88%2042-01-2052-0125,308 — — 
57 51,393 — — 
Fixed loans
$— to$25063 3.13 %to5.00%2026-04-2051-1211,118 — — 
$251 to$500133 2.75 %to5.50%2026-12-2051-1151,737 — — 
$501 to$750790 2.50 %to5.88%2026-12-2052-01514,785 — 1,093 
$751 to$1,000735 2.63 %to5.63%2041-07-2052-.01642,372 — — 
over$1,000418 2.50 %to4.75%2041-10-2052-.01542,460 — 1,830 
2,139 1,762,472 — 2,923 
Total Held-for-Sale2,196 $1,813,865 $— $2,923 
Held-for-Investment at Legacy Sequoia:
ARM loans:
$— to$2501,273 0.38 %to5.63%2022-01-2035-11$115,437 $3,189 $2,691 
$251 to$500206 0.75 %to3.88%2024-05-2035-1171,306 2,831 2,124 
$501 to$75068 0.25 %to4.13%2027-05-2035-0742,128 555 1,842 
$751 to$1,00015 0.75 %to3.75%2028-03-2036-0312,868 1,811 825 
over$1,00012 0.88 %to2.00%2028-06-2035-0418,668 1,175 — 
1,574 260,407 9,561 7,482 
Hybrid ARM loans:
$— to$2502.63 %to2.63%2033-09-2033-10650 — — 
$251 to$5002.50 %to2.63%2033-07-2034-031,341 — — 
$501 to$7502.50 %to2.50%2033-08-2033-08518 — — 
over$1,0002.63 %to2.63%2033-09-2033-091,140 — — 
3,649 — — 
Total HFI at Legacy Sequoia:1,583 $264,056 $9,561 $7,482 
Table 6.7 – Product Types and Characteristics of Residential Loans (continued)
December 31, 2021
(In Thousands)
Loan BalanceNumber of
Loans
Interest
 Rate(1)
Maturity
Date
Total
Principal
30-89
Days
DQ
90+
Days
DQ
Held-for-Investment at Sequoia:
Hybrid ARM loans
$— to$2505.50 %to6.75%2048-03-2048-09$397 $191 $— 
$251 to$5003.25 %to3.63%2047-04-2049-061,354 — — 
$501 to$7503.38 %to4.50%2044-04-2049-085,321 — — 
$751 to$1,0003.13 %to5.00%2047-06-2049-086,659 — — 
over$1,0003.50 %to5.00%2044-11-2050-018,934 — — 
28 22,665 191 — 
Fixed loans:
$— to$25043 2.75 %to5.13%2029-04-2051-06$8,630 $— $— 
$251 to$500162 2.50 %to6.13%2033-06-2051-0969,442 2,390 462 
$501 to$7501,691 2.13 %to6.75%2031-04-2051-121,093,766 10,894 3,498 
$751 to$1,0001,497 2.13 %to6.25%2036-12-2051-111,311,640 9,477 4,931 
over$1,000879 1.88 %to5.88%2036-07-2051-111,099,328 8,508 6,233 
4,272 3,582,806 31,269 15,124 
4,300 $3,605,471 $31,460 $15,124 
Held-for-Investment at Freddie Mac SLST:
Fixed loans:
$— to$2509,798 2.00 %to11.00%2021-122061-10$1,224,173 $222,541 $114,622 
$251 to$5002,141 2.00 %to7.75%2035-082059-08681,885 114,360 91,149 
$501 to$75046 2.00 %to5.88%2043-082059-0125,165 3,127 7,190 
over$1,0004.00 %to4.00%2056-032056-031,018 1,018 — 
Total Held-for-Investment11,986 $1,932,241 $341,046 $212,961 
(1)Rate is net of servicing fee for consolidated loans for which we do not own the MSR.Business Purpose Loans
We originate and invest in business purpose loans, including term and bridge loans (see Note 3 for a full description of these loans). The following table summarizes the classifications and carrying values of the business purpose loans owned at Redwood and at consolidated CAFL entities at December 31, 2022 and 2021.
Table 7.1 – Classifications and Carrying Values of Business Purpose Loans
December 31, 2022BPL TermBPL Bridge
(In Thousands)RedwoodCAFLRedwoodCAFLTotal
Held-for-sale at fair value$358,791 $— $5,282 $— $364,073 
Held-for-investment at fair value— 2,944,984 1,507,146 516,383 4,968,513 
Total Business Purpose Loans$358,791 $2,944,984 $1,512,428 $516,383 $5,332,586 
December 31, 2021BPL TermBPL Bridge
(In Thousands)RedwoodCAFLRedwoodCAFLTotal
Held-for-sale at fair value$358,309 $— $— $— $358,309 
Held-for-investment at fair value— 3,488,074 666,364 278,242 4,432,680 
Total Business Purpose Loans$358,309 $3,488,074 $666,364 $278,242 $4,790,989 
Nearly all of the outstanding BPL term loans at December 31, 2022 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 1% having original maturities of 30 years.
The outstanding BPL bridge loans held-for-investment at December 31, 2022 were first-lien, interest-only loans with original maturities of six to 36 months and were comprised of 37% one-month LIBOR-indexed adjustable-rate loans, 53% one-month SOFR-indexed adjustable-rate loans, and 10% fixed-rate loans.
At December 31, 2022, we had a $904 million commitment to fund BPL bridge loans. See Note 17 for additional information on this commitment.
The following table provides the activity of business purpose loans during the years ended December 31, 2022 and 2021.
Table 7.2 – Activity of Business Purpose Loans at Redwood
Twelve Months Ended 
 December 31, 2022
Twelve Months Ended 
 December 31, 2021
(In Thousands)BPL Term at RedwoodBPL Bridge at RedwoodBPL Term at RedwoodBPL Bridge at Redwood
Principal balance of loans originated$1,000,109 $1,698,227 $1,254,913 $894,908 
Principal balance of loans acquired (1)
100,349 97,787 68,804 65,315 
Principal balance of loans sold to third parties 429,873 79,608 193,963 9,484 
Fair value of loans transferred (2)
561,218 584,233 1,116,443 358,884 
Fair value of loans transferred from HFI to HFS (3)
— — 92,455 N/A
Mortgage banking activities income (loss) recorded (4)
(91,024)1,881 63,206 7,188 
Investment fair value changes recorded (5)
— (5,805)— 1,483 
(1)BPL bridge at Redwood for the year ended December 31, 2022, includes $60 million of loans acquired as part of the Riverbend acquisition.
(2)For BPL term at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL Term securitizations. For BPL bridge at Redwood, represents the transfer of BPL bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their securitization.
(3)Represents the transfer of BPL term loans from held-for-investment to held-for-sale associated with the call of a consolidated CAFL securitization during the second quarter of 2021.
(4)Represents net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio. Additionally, for the year ended December 31, 2022, we recorded loan origination fee income of $41 million, through Mortgage banking activities, net on our consolidated statements of income (loss).
(5)Represents net market valuation changes for loans classified as held-for-investment and associated interest-only strip liabilities.
Business Purpose Loans Held-for-Investment at CAFL
    We invest in securities issued by CAFL securitizations sponsored by CoreVest and consolidate the underlying BPL term and bridge loans owned by these entities. For loans held at our consolidated CAFL Term entities, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines, and are recorded through Investment fair value changes, net on our consolidated statements of income (loss). The net impact to our income statement associated with our economic investments in the CAFL Term entities is presented in Table 4.2. We did not elect to account for the CAFL Bridge securitizations under the collateralized financing entity guidelines. The following table provides the activity of business purpose loans held-for-investment at CAFL during the years ended December 31, 2022 and 2021.
Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL
Year Ended 
December 31, 2022
Year Ended 
December 31, 2021
(In Thousands)BPL Term at
CAFL
BPL Bridge at CAFLBPL Term at
CAFL
BPL Bridge at CAFL
Net market valuation gains (losses) recorded$(441,318)$(435)$(158,081)$(1,548)
.
REO
See Note 13 for detail on business purpose loans transferred to REO during 2022.
Business Purpose Loan Characteristics
The following tables summarize the characteristics of the business purpose loans owned at Redwood at December 31, 2022 and 2021.
Table 7.4 – Characteristics of Business Purpose Loans
December 31, 2022BPL Term at Redwood
BPL Term at
CAFL(1)
BPL Bridge at RedwoodBPL Bridge at CAFL
(Dollars in Thousands)
Number of loans91 1,131 1,601 1,875 
Unpaid principal balance$389,846 $3,263,421 $1,518,427 $514,666 
Fair value of loans$358,791 $2,944,984 $1,512,428 $516,383 
Weighted average coupon5.98 %5.22 %9.61 %9.67 %
Weighted average remaining loan term (years)10621
Market value of loans pledged as collateral under short-term debt facilities$291,406 N/A$579,666 N/A
Market value of loans pledged as collateral under long-term debt facilities$66,567 N/A$897,782 N/A
Delinquency information
Number of loans with 90+ day delinquencies (2)
16 49 48 
Unpaid principal balance of loans with 90+ day delinquencies $536 $37,072 $34,264 $7,328 
Fair value of loans with 90+ day delinquencies (3)
$536 N/A$29,663 $7,438 
Number of loans in foreclosure48 48 
Unpaid principal balance of loans in foreclosure$536 $13,686 $34,039 $7,328 
Fair value of loans in foreclosure (3)
$536 N/A$29,438 $7,438 
December 31, 2021BPL Term at Redwood
BPL Term at
CAFL(1)
BPL Bridge at RedwoodBPL Bridge at CAFL
(Dollars in Thousands)
Number of loans245 1,173 1,134 1,640 
Unpaid principal balance$348,232 $3,340,949 $670,392 $274,617 
Fair value of loans$358,309 $3,488,074 $666,364 $278,242 
Weighted average coupon4.73 %5.17 %6.91 %7.05 %
Weighted average remaining loan term (years)12611
Market value of loans pledged as collateral under short-term debt facilities$75,873 N/A$91,814 N/A
Market value of loans pledged as collateral under long-term debt facilities$244,703 N/A$554,597 N/A
Delinquency information
Number of loans with 90+ day delinquencies (2)
18 31 — 
Unpaid principal balance of loans with 90+ day delinquencies$5,384 $41,998 $18,032 $— 
Fair value of loans with 90+ day delinquencies (3)
$4,238 N/A$14,218 $— 
Number of loans in foreclosure28 — 
Unpaid principal balance of loans in foreclosure$5,473 $12,648 $18,043 $— 
Fair value of loans in foreclosure (3)
$4,305 N/A$14,257 $— 
Footnotes to Table 7.4
(1)The fair value of the loans held by consolidated CAFL entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities.
(2)The number of loans 90-or-more days delinquent includes loans in foreclosure.
(3)May include loans that are less than 90 days delinquent.
The following table presents the geographic concentration of business purpose loans recorded on our consolidated balance sheets at December 31, 2022 and December 31, 2021.
Table 7.5 – Geographic Concentration of Business Purpose Loans
 December 31, 2022
Geographic Concentration
(by Principal)
BPL Term at RedwoodBPL Term at CAFLBPL Bridge at RedwoodBPL Bridge at CAFL
California34 %%%%
Connecticut10 %%%%
Illinois%%%%
New York%%%%
Florida%%%%
Texas%16 %13 %%
Alabama%%%33 %
New Jersey%%%%
Georgia%%21 %14 %
Tennessee%%%%
Other states (none greater than 5%)31 %37 %25 %29 %
Total100 %100 %100 %100 %
 December 31, 2021
Geographic Concentration
(by Principal)
BPL Term at RedwoodBPL Term at CAFLBPL Bridge at RedwoodBPL Bridge at CAFL
Florida15 %%10 %17 %
Texas11 %15 %%13 %
Alabama11 %%%%
Connecticut%%%%
New Jersey%%%12 %
New York%%%%
Georgia%%20 %%
California%%%%
Illinois%%%%
Tennessee— %%11 %%
Other states (none greater than 5%)33 %41 %21 %25 %
Total100 %100 %100 %100 %
The following table displays the loan product type and accompanying loan characteristics of business purpose loans recorded on our consolidated balance sheets at December 31, 2022 and December 31, 2021.
Table 7.6 – Product Types and Characteristics of Business Purpose Loans
December 31, 2022
(In Thousands)
Loan BalanceNumber of
Loans
Interest
 Rate
Maturity
Date
Total
Principal
30-89
Days
DQ
90+
Days
DQ
BPL Term Loans at Redwood:
Fixed loans:
$— to$25013 4.25 %to7.88%2048-11-2052-06$1,682 $— $— 
$251 to$50014 5.00 %to7.74%2029-04-2052-075,014 — — 
$501 to$75011 4.65 %to8.44%2021-08-2052-046,658 550 536 
$751 to$1,0007.25 %to8.08%2032-09-2033-013,724 — — 
over$1,00049 3.75 %to8.47%2025-08-2052-04372,768 — — 
Total BPL term loans at Redwood:91 $389,846 $550 $536 
BPL Term Loans CAFL:
Fixed loans:
$— to$2504.54 %to6.27%2022-11-2028-11$588 $— $— 
$251 to$50073 4.00 %to7.06%2023-01-2032-0431,725 — 711 
$501 to$750181 4.12 %to7.04%2022-11-2032-06112,413 2,025 1,200 
$751 to$1,000123 4.20 %to7.23%2022-08-2032-07107,097 — 1,856 
over$1,000749 3.81 %to7.57%2022-06-2032-083,011,598 70,549 35,716 
Total BPL Term loans at CAFL:1,131 $3,263,421 $72,574 $39,483 
BPL Bridge Loans at Redwood
Fixed Loans:
$— to$250155 6.25 %to11.25%2020-12-2024-06$15,409 $1,240 $957 
$251 to$50054 6.00 %to11.50%2020-05-2024-0619,745 — 1,290 
$501 to$75020 6.50 %to11.00%2021-02-2024-0512,108 — 2,568 
$751 to$1,0006.95 %to10.00%2022-03-2023-066,375 — 980 
over$1,00025 6.95 %to10.00%2020-07-2023-0651,541 — 27,597 
261 105,178 1,240 33,392 
Floating Loans:
$— to$2501,086 9.37 %to11.37%2021-10-2024-09$114,604 $— $872 
$251 to$500116 9.37 %to11.61%2023-03-2024-0945,290 — — 
$501 to$7509.37 %to11.61%2023-05-2025-094,699 — — 
$751 to$1,0009.37 %to10.12%2023-07-2024-052,754 — — 
over$1,000127 8.27 %to11.87%2023-01-2025-091,245,902 — — 
1,340 1,413,249 — 872 
Total BPL Bridge Loans at Redwood:1,601 $1,518,427 $1,240 $34,264 
BPL Bridge Loans at CAFL:
Fixed loans:
$— to$250513 6.30 %to11.24%2022-05-2024-03$44,865 $— $193 
$251 to$50055 6.30 %to10.99%2022-10-2023-0917,677 300 — 
$501 to$75015 6.30 %to10.49%2022-12-2023-088,969 — — 
$751 to$1,0006.50 %to9.50%2022-12-2023-066,152 — — 
over$1,00015 6.75 %to9.99%2022-11-2023-1032,140 1,400 3,760 
605 109,803 1,700 3,953 
December 31, 2022
(In Thousands)
Loan BalanceNumber of
Loans
Interest
 Rate
Maturity
Date
Total
Principal
30-89
Days
DQ
90+
Days
DQ
Floating Loans:
$— to$2501,064 6.12 %to12.62%2021-10-2024-11$131,492 $— $2,040 
$251 to$500112 8.12 %to11.37%2021-10-2024-0632,706 — 783 
$501 to$75019 6.92 %to11.82%2021-10-2024-1111,595 — 552 
$751 to$1,0009.87 %to11.37%2023-04-2024-067,570 — — 
over$1,00066 8.77 %to12.37%2022-10-2025-03221,500 3,988 — 
1,270 404,863 3,988 3,375 
Total BPL Bridge Loans at CAFL:1,875 $514,666 $5,688 $7,328 
December 31, 2021
(In Thousands)
Loan BalanceNumber of
Loans
Interest
 Rate
Maturity
Date
Total
Principal
30-89
Days
DQ
90+
Days
DQ
BPL Term loans at Redwood:
Fixed loans:
$— to$25074 3.75 %to7.75%2048-11-2052-01$11,515 $89 $171 
$251 to$50057 3.75 %to6.50%2026-01-2052-0121,284 — — 
$501 to$75028 3.75 %to6.70%2021-01-2052-0116,773 — 536 
$751 to$1,00012 4.13 %to5.43%2026-12-2052-019,764 — — 
over$1,00074 3.38 %to7.15%2020-01-2052-01288,896 — 4,677 
Total BPL Term Loans at Redwood:245 $348,232 $89 $5,384 
BPL Term Loans at CAFL:
Fixed loans:
$— to$2505.77 %to6.80%2023-01-2024-04$398 $20 $— 
$251 to$50073 4.64 %to7.03%2022-02-2031-0232,106 466 257 
$501 to$750199 4.00 %to7.06%2022-02-2031-10123,685 717 1,224 
$751 to$1,000134 4.20 %to7.23%2022-03-2031-09116,724 788 — 
over$1,000762 3.81 %to7.57%2022-03-2030-103,068,036 26,481 40,518 
Total BPL Term Loans at CAFL:1,173 $3,340,949 $28,472 $41,999 
BPL Bridge Loans at Redwood
Fixed Loans:
$— to$250115 5.95 %to12.00%2019-08-2023-11$12,850 $426 $1,493 
$251 to$50026 5.95 %to10.00%2020-05-2023-099,294 253 1,619 
$501 to$75013 6.70 %to10.00%2021-02-2022-118,498 637 2,012 
$751 to$1,0005.45 %to10.00%2021-09-2022-107,544 980 — 
over$1,00024 5.45 %to10.00%2020-07-2023-1057,880 11,699 11,992 
187 96,066 13,995 17,116 
Floating Loans:
$— to$250737 4.25 %to10.00%2019-08-2023-11$65,611 $773 $— 
$251 to$500123 4.25 %to8.25%2020-05-2023-1242,248 — — 
$501 to$7505.75 %to8.60%2021-03-2024-025,724 — — 
$751 to$1,00012 5.75 %to7.50%2020-12-2024-0210,200 945 916 
over$1,00066 4.90 %to9.50%2021-03-2024-12450,543 1,680 — 
947 574,326 3,398 916 
Total BPL Bridge Loans at Redwood:1,134 $670,392 $17,393 $18,032 
Bridge at CAFL:
Fixed loans:
$— to$250808 5.45 %to10.65%2022-01-2023-05$58,110 $— $— 
$251 to$50070 5.95 %to10.50%2022-01-2023-0323,488 — — 
$501 to$75024 5.95 %to9.99%2022-01-2023-0815,041 — — 
$751 to$1,0005.45 %to8.99%2022-01-2023-046,375 — — 
over$1,00011 6.25 %to9.00%2022-01-2023-1132,864 — — 
920 135,878 — — 
December 31, 2021
(In Thousands)
Loan BalanceNumber of
Loans
Interest
 Rate
Maturity
Date
Total
Principal
30-89
Days
DQ
90+
Days
DQ
Floating Loans:
$— to$250681 5.85 %to10.50%2021-10-2023-09$77,001 $2,091 $— 
$251 to$50013 5.95 %to8.35%2021-10-2023-094,088 783 — 
$501 to$7505.75 %to8.50%2021-10-2023-103,097 552 — 
$751 to$1,0006.75 %to7.25%2022-04-2023-062,546 — — 
over$1,00018 5.75 %to10.00%2021-11-2023-1252,007 — — 
720 138,739 3,426 — 
Total BPL Bridge Loans at CAFL:1,640 $274,617 $3,426 $— 
Consolidated Agency Multifamily Loans
We invest in multifamily subordinate securities issued by a Freddie Mac K-Series securitization trust and consolidate the underlying multifamily loans owned by this entity for financial reporting purposes in accordance with GAAP.
The following table summarizes the characteristics of the multifamily loans consolidated at Redwood at December 31, 2022 and 2021.
Table 8.1 – Characteristics of Consolidated Agency Multifamily Loans
(Dollars in Thousands)December 31, 2022December 31, 2021
Number of loans28 28 
Unpaid principal balance$447,193 $455,168 
Fair value of loans$424,551 $473,514 
Weighted average coupon4.25 %4.25 %
Weighted average remaining loan term (years)34
Delinquency information
Number of loans with 90+ day delinquencies— — 
Number of loans in foreclosure— — 
The outstanding Consolidated Agency multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at December 31, 2022 were first-lien, fixed-rate loans that were originated in 2015. The following table provides the activity of multifamily loans held-for-investment during the years ended December 31, 2022 and 2021.
Table 8.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment
Year Ended December 31,
(In Thousands)20222021
Net market valuation gains (losses) recorded (1)
$(40,987)$(11,068)
(1)Net market valuation gains (losses) on multifamily loans held-for-investment are recorded through Investment fair value changes, net on our consolidated statements of income (loss). For loans held at our consolidated Freddie Mac K-Series entity, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 4.2.
Multifamily Loan Characteristics
The following table presents the geographic concentration of multifamily loans recorded on our consolidated balance sheets at December 31, 2022.
Table 8.3 – Geographic Concentration of Consolidated Agency Multifamily Loans
Geographic Concentration
(by Principal)
December 31, 2022December 31, 2021
California13 %13 %
Florida13 %13 %
North Carolina%%
Oregon%%
Hawaii%%
Tennessee%%
Other states (none greater than 5%)48 %48 %
Total100 %100 %
The following table displays the loan product type and accompanying loan characteristics of multifamily loans recorded on our consolidated balance sheets at December 31, 2022.
Table 8.4 – Product Types and Characteristics of Multifamily Loans
December 31, 2022
(In Thousands)
Loan BalanceNumber of
Loans
Interest
 Rate
Maturity
Date
Total
Principal
30-89
Days
DQ
90+
Days
DQ
Fixed loans:
$10,001 to$20,00024 4.25 %to4.25%2025-09-2025-09$358,419 $— $— 
$20,001 to$30,0004.25 %to4.25%2025-09-2025-0988,774 — — 
Total:28 $447,193 $— $— 
December 31, 2021
(In Thousands)
Loan BalanceNumber of
Loans
Interest
 Rate
Maturity
Date
Total
Principal
30-89
Days
DQ
90+
Days
DQ
Fixed loans:
$10,001 to$20,00024 4.25 %to4.25%2025-09-2025-09$364,811 $— $— 
$20,001 to$30,0004.25 %to4.25%2025-09-2025-0990,357 — — 
Total:28 $455,168 $— $—