XML 34 R23.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Short-Term Debt
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Short-Term Debt Short-Term Debt
We enter into repurchase agreements ("repo"), loan warehouse agreements, and other forms of collateralized (and generally uncommitted) short-term borrowings with several banks and major investment banking firms. At March 31, 2024, we had outstanding agreements with several counterparties and we were in compliance with all of the related covenants.
The table below summarizes our short-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at March 31, 2024 and December 31, 2023.
Table 14.1 – Short-Term Debt
March 31, 2024
(Dollars in Thousands)Number of FacilitiesOutstanding BalanceLimit
Weighted Average Interest Rate (1)
Maturity (2)
Weighted Average Days Until Maturity
Facilities
Residential consumer loan warehouse (3)
5 $470,761 $1,350,000 7.26 %5/2024-3/2025226
Residential investor loan warehouse2 31,321 455,000 8.06 %5/2024-6/202471
Real estate securities repo
4 80,657 — 6.81 %4/2024-6/202438
Residential MSR warehouse1 46,514 50,000 8.58 %10/2024211
HEI warehouse1 119,851 150,000 9.84 %8/2024123
Total Short-Term Debt Facilities13 749,104 
Servicer advance financing1 147,341 240,000 7.68 %12/2024246
Recourse subordinate securities financing2 223,934 — 7.21 %9/2024-2/2025235
Promissory notesN/A15,273 — 7.02 %N/AN/A
Convertible notes, netN/A115,792 — 5.63 %7/2024106
Total Short-Term Debt$1,251,444 
December 31, 2023
(Dollars in Thousands)Number of FacilitiesOutstanding BalanceLimit
Weighted Average Interest Rate (1)
MaturityWeighted Average Days Until Maturity
Facilities
Residential consumer loan warehouse 4 $796,537 $1,150,000 7.27 %2/2024-12/2024202
Residential investor loan warehouse2 71,719 455,000 8.14 %5/2024-6/2024166
Real estate securities repo
3 82,622 — 7.01 %1/2024-3/202426
Residential MSR warehouse1 47,858 50,000 8.60 %10/2024302
HEI warehouse1 122,659 150,000 9.89 %8/2024214
Total Short-Term Debt Facilities11 1,121,395 
Servicer advance financing1 153,653 240,000 7.71 %12/2024337
Recourse subordinate securities financing1 124,552 — 7.21 %9/2024266
Promissory notesN/A16,064 — 6.97 %N/AN/A
Convertible notes, netN/A142,558 — 5.63 %7/2024197
Total Short-Term Debt$1,558,222 
Footnotes to table 14.1
(1)Borrowings under our facilities generally are uncommitted and charged interest based on a specified margin over SOFR.
(2)Promissory notes payable on demand to lender with 90-day notice.
(3)At March 31, 2024, includes one non-recourse facility with a borrowing limit of $300 million and a maturity of March 2025.
The following table below presents the value of loans, securities, and other assets pledged as collateral under our short-term debt at March 31, 2024 and December 31, 2023.
Table 14.2 – Collateral for Short-Term Debt
(In Thousands)March 31, 2024December 31, 2023
Collateral Type
Held-for-sale residential consumer loans$507,450 $907,742 
MSRs (1)
84,831 76,560 
Residential investor loans 40,961 95,225 
HEI239,665 237,973 
Real estate securities (collateralizing debt facilities)
On balance sheet4,470 4,460 
Sequoia securitizations (2)
43,653 52,333 
Freddie Mac K-Series securitization (2)
33,551 33,308 
CAFL securitizations (2)
32,336 32,010 
Total real estate securities owned
114,010 122,111 
Restricted cash and other assets580 — 
Total Collateral for Short-Term Debt Facilities987,497 1,439,611 
Cash14,357 15,162 
Real estate securities (recourse subordinate securities financing)313,148 175,096 
Servicer advances216,033 225,345 
Total Collateral for Short-Term Debt$1,531,035 $1,855,214 
(1)Includes certificated mortgage servicing rights classified as securities on our consolidated balance sheets.
(2)Represents securities we retained from consolidated securitization entities. For GAAP purposes, we consolidate the loans and non-recourse ABS issued from these securitizations.
For the three months ended March 31, 2024, the average balance of our short-term debt facilities was $951 million. At March 31, 2024 and December 31, 2023, accrued interest payable on our short-term debt facilities was $4 million and $6 million, respectively.
Servicer advance financing consists of non-recourse short-term securitization debt used to finance servicer advance investments. We consolidate the securitization entity that issued the debt, but the entity is independent of Redwood and the assets and liabilities are not owned by and are not legal obligations of Redwood.
In 2019, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable (i.e., not subject to margin calls based solely on the lender's determination, in its discretion, of the market value of the underlying collateral that is non-delinquent) recourse debt financing of certain Sequoia securities as well as securities retained from our consolidated Sequoia securitizations ("Subordinate securities financing" in Table 14.1 above). The financing is fully and unconditionally guaranteed by Redwood, and had an interest rate of approximately 4.21% through September 2022, 5.71% from October 2022 through September 2023, and 7.21% from October 2023 through final maturity in September 2024.
In connection with our acquisition of Riverbend, we assumed promissory notes that are payable on demand with a 90-day notice from the lender or which may be repaid by us with a 90-day notice. These unsecured, non-marginable, recourse notes were issued in three separate series with fixed interest rates between 6% and 8%.
During the three months ended March 31, 2024, we repurchased $27 million of our convertible notes due in 2024. At March 31, 2024 the outstanding principal balance of our convertible notes due in July 2024 was $116 million.
Remaining Maturities of Short-Term Debt
The following table presents the remaining maturities of our secured short-term debt by the type of collateral securing the debt at March 31, 2024.
Table 14.3 – Short-Term Debt by Collateral Type and Remaining Maturities
March 31, 2024
(In Thousands)Within 30 days31 to 90 daysOver 90 daysTotal
Collateral Type
Held-for-sale residential consumer loans$— $92,411 $378,350 $470,761 
Residential investor loans— 31,321 — 31,321 
Real estate securities35,846 44,811 223,934 304,591 
MSRs— — 46,514 46,514 
HEI— — 119,851 119,851 
Servicer advances— — 147,341 147,341 
Total Secured Short-Term Debt Facilities35,846 168,543 915,990 1,120,379 
Promissory notes (unsecured)— 15,273 — 15,273 
Convertible notes, net (unsecured) — — 115,792 115,792 
Total Short-Term Debt$35,846 $183,816 $1,031,782 $1,251,444