QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
| |||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
☒ | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 par value per share | shares outstanding as of August 7, 2024 |
Page | |||||||||||
PART I — | FINANCIAL INFORMATION | ||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II — | OTHER INFORMATION | ||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 5. | |||||||||||
Item 6. | |||||||||||
(In Thousands, except Share Data) (Unaudited) | June 30, 2024 | December 31, 2023 | ||||||||||||
ASSETS (1) | ||||||||||||||
Residential consumer loans, held-for-sale, at fair value | $ | $ | ||||||||||||
Residential consumer loans, held-for-investment, at fair value | ||||||||||||||
Residential investor loans, held-for-sale, at fair value | ||||||||||||||
Residential investor loans, held-for-investment, at fair value | ||||||||||||||
Consolidated Agency multifamily loans, at fair value | ||||||||||||||
Real estate securities, at fair value | ||||||||||||||
Home equity investments, at fair value | ||||||||||||||
Other investments | ||||||||||||||
Cash and cash equivalents | ||||||||||||||
Restricted cash | ||||||||||||||
Derivative assets | ||||||||||||||
Other assets | ||||||||||||||
Total Assets | $ | $ | ||||||||||||
LIABILITIES AND EQUITY (1) | ||||||||||||||
Liabilities | ||||||||||||||
Asset-backed securities issued (includes $ | $ | $ | ||||||||||||
Debt obligations, net | ||||||||||||||
Derivative liabilities | ||||||||||||||
Accrued expenses and other liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and Contingencies (see Note 18) | ||||||||||||||
Equity | ||||||||||||||
Preferred stock, par value $ | ||||||||||||||
Common stock, par value $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Cumulative earnings | ||||||||||||||
Cumulative distributions to stockholders | ( | ( | ||||||||||||
Total equity | ||||||||||||||
Total Liabilities and Equity | $ | $ |
(In Thousands, except Share Data) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
(Unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Interest Income | ||||||||||||||||||||||||||
Residential consumer loans | $ | $ | $ | $ | ||||||||||||||||||||||
Residential investor loans | ||||||||||||||||||||||||||
Consolidated Agency multifamily loans | ||||||||||||||||||||||||||
Real estate securities | ||||||||||||||||||||||||||
Other interest income | ||||||||||||||||||||||||||
Total interest income | ||||||||||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||||
Asset-backed securities issued | ( | ( | ( | ( | ||||||||||||||||||||||
Debt obligations | ( | ( | ( | ( | ||||||||||||||||||||||
Total interest expense | ( | ( | ( | ( | ||||||||||||||||||||||
Net Interest Income | ||||||||||||||||||||||||||
Non-Interest Income | ||||||||||||||||||||||||||
Mortgage banking activities, net | ||||||||||||||||||||||||||
Investment fair value changes, net | ( | ( | ||||||||||||||||||||||||
HEI income, net | ||||||||||||||||||||||||||
Other income, net | ||||||||||||||||||||||||||
Realized gains, net | ||||||||||||||||||||||||||
Total non-interest income, net | ||||||||||||||||||||||||||
General and administrative expenses | ( | ( | ( | ( | ||||||||||||||||||||||
Portfolio management costs | ( | ( | ( | ( | ||||||||||||||||||||||
Loan acquisition costs | ( | ( | ( | ( | ||||||||||||||||||||||
Other expenses | ( | ( | ( | ( | ||||||||||||||||||||||
Net Income Before (Provision for) Benefit From Income Taxes | ||||||||||||||||||||||||||
(Provision for) benefit from income taxes | ( | ( | ( | |||||||||||||||||||||||
Net Income | $ | $ | $ | $ | ||||||||||||||||||||||
Dividends on preferred stock | ( | ( | ( | ( | ||||||||||||||||||||||
Net Income Available To Common Stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Basic earnings per common share | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted earnings per common share | $ | $ | $ | $ | ||||||||||||||||||||||
Basic weighted average common shares outstanding | ||||||||||||||||||||||||||
Diluted weighted average common shares outstanding |
(In Thousands) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
(Unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Net Income | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||
Net unrealized gain (loss) on available-for-sale securities | ( | |||||||||||||||||||||||||
Reclassification of unrealized (gain) loss on available-for-sale securities to net income | ( | ( | ||||||||||||||||||||||||
Reclassification of unrealized loss on interest rate agreements to net income | ||||||||||||||||||||||||||
Total other comprehensive income | $ | $ | $ | $ | ||||||||||||||||||||||
Comprehensive Income | $ | $ | $ | $ | ||||||||||||||||||||||
Dividends on preferred stock | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Comprehensive income available to Common Stockholders | $ | $ | $ | $ |
(In Thousands, except Share Data) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) | Cumulative Earnings | Cumulative Distributions to Stockholders | Total | |||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | Shares | Par Value | ||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2024 | $ | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Employee stock purchase and incentive plans | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Non-cash equity award compensation and other | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends declared ($ | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Common dividends declared ($ | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2024 | $ | $ | $ | $ | ( | $ | $ | ( | $ |
(In Thousands, except Share Data) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) | Cumulative Earnings | Cumulative Distributions to Stockholders | Total | |||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | Shares | Par Value | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 | $ | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Employee stock purchase and incentive plans | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Non-cash equity award compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends declared ($ | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Common dividends declared ($ | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2024 | $ | $ | $ | $ | ( | $ | $ | ( | $ |
(In Thousands, except Share Data) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) | Cumulative Earnings | Cumulative Distributions to Stockholders | Total | |||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | Shares | Par Value | ||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2023 | $ | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Employee stock purchase and incentive plans | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Non-cash equity award compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends declared ($ | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Common dividends declared ($ | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | $ | $ | $ | $ | ( | $ | $ | ( | $ |
(In Thousands, except Share Data) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) | Cumulative Earnings | Cumulative Distributions to Stockholders | Total | |||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | Shares | Par Value | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | $ | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Employee stock purchase and incentive plans | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Non-cash equity award compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends declared ($ | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Common dividends declared ($ | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | $ | $ | $ | $ | ( | $ | $ | ( | $ |
(In Thousands) (Unaudited) | Six Months Ended June 30, | |||||||||||||
2024 | 2023 | |||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||||||||
Amortization of premiums, discounts, and debt issuance costs, net | ||||||||||||||
Depreciation and amortization of non-financial assets | ||||||||||||||
Originations of held-for-sale loans | ( | ( | ||||||||||||
Purchases of held-for-sale loans | ( | ( | ||||||||||||
Proceeds from sales of held-for-sale loans | ||||||||||||||
Principal payments on held-for-sale loans | ||||||||||||||
Net settlements of derivatives | ( | ( | ||||||||||||
Non-cash equity award compensation expense and other | ||||||||||||||
Market valuation adjustments | ( | ( | ||||||||||||
Realized (gains) losses, net | ( | ( | ||||||||||||
Net change in: | ||||||||||||||
Other assets | ||||||||||||||
Accrued expenses and other liabilities | ||||||||||||||
Net cash (used in) provided by operating activities | ( | |||||||||||||
Cash Flows From Investing Activities: | ||||||||||||||
Originations and purchases of loan investments | ( | ( | ||||||||||||
Proceeds from sales of loans | ||||||||||||||
Principal payments on loan investments | ||||||||||||||
Purchases of real estate securities | ( | ( | ||||||||||||
Proceeds from sales of real estate securities | ||||||||||||||
Principal payments on real estate securities | ||||||||||||||
Repayments from servicer advance investments, net | ||||||||||||||
Purchases of HEI | ( | ( | ||||||||||||
Repayments on HEI | ||||||||||||||
Other investing activities, net | ( | ( | ||||||||||||
Net cash provided by investing activities | ||||||||||||||
Cash Flows From Financing Activities: | ||||||||||||||
Proceeds from borrowings on debt obligations | ||||||||||||||
Repayments on debt obligations | ( | ( | ||||||||||||
Proceeds from issuance of asset-backed securities | ||||||||||||||
Repayments on asset-backed securities issued | ( | ( | ||||||||||||
Debt issuance costs paid | ( | ( | ||||||||||||
Taxes paid on equity award distributions | ( | ( | ||||||||||||
Net proceeds from issuance of common stock | ||||||||||||||
Net proceeds from issuance of preferred stock | ||||||||||||||
Dividends paid on common stock | ( | ( | ||||||||||||
Dividends paid on preferred stock | ( | ( | ||||||||||||
Other financing activities, net | ( | |||||||||||||
Net cash provided by (used in) financing activities | ( | |||||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | ( | |||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | ||||||||||||
Cash and cash equivalents at end of period | ||||||||||||||
Restricted cash at end of period | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ |
(In Thousands) (Unaudited) | Six Months Ended June 30, | |||||||||||||
2024 | 2023 | |||||||||||||
Supplemental Cash Flow Information: | ||||||||||||||
Cash paid during the period for: | ||||||||||||||
Interest | $ | $ | ||||||||||||
Taxes refunded | ( | ( | ||||||||||||
Supplemental Noncash Information: | ||||||||||||||
Dividends declared but not paid on preferred stock | ||||||||||||||
Retention of mortgage servicing rights from loan sales | ||||||||||||||
Transfers from loans held-for-sale to loans held-for-investment | ||||||||||||||
Transfers from residential consumer loans to real estate owned | ||||||||||||||
Right-of-use asset obtained in exchange for operating lease liability | ||||||||||||||
Reduction in operating lease liability due to lease modification | ||||||||||||||
Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||
(In Thousands) | Residential Consumer Mortgage Banking | Residential Investor Mortgage Banking | Investment Portfolio | Corporate/ Other | Total | |||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Net interest income (expense) | ( | |||||||||||||||||||||||||||||||
Non-interest income (loss) | ||||||||||||||||||||||||||||||||
Mortgage banking activities, net | ||||||||||||||||||||||||||||||||
Investment fair value changes, net | ( | |||||||||||||||||||||||||||||||
HEI income, net | ||||||||||||||||||||||||||||||||
Other income, net | ( | |||||||||||||||||||||||||||||||
Realized gains, net | ||||||||||||||||||||||||||||||||
Total non-interest income (loss), net | ( | |||||||||||||||||||||||||||||||
General and administrative expenses | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Portfolio management costs | ( | ( | ( | |||||||||||||||||||||||||||||
Loan acquisition costs | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Other expenses | ( | ( | ( | |||||||||||||||||||||||||||||
(Provision for) benefit from income taxes | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Segment Contribution | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||
Net Income | $ | |||||||||||||||||||||||||||||||
Non-cash amortization (expense), net | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||
Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||
(In Thousands) | Residential Consumer Mortgage Banking | Residential Investor Mortgage Banking | Investment Portfolio | Corporate/ Other | Total | |||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Net interest income (expense) | ( | |||||||||||||||||||||||||||||||
Non-interest income (loss) | ||||||||||||||||||||||||||||||||
Mortgage banking activities, net | ||||||||||||||||||||||||||||||||
Investment fair value changes, net | ( | |||||||||||||||||||||||||||||||
HEI income, net | ||||||||||||||||||||||||||||||||
Other income, net | ( | |||||||||||||||||||||||||||||||
Realized gains, net | ||||||||||||||||||||||||||||||||
Total non-interest income (loss), net | ( | |||||||||||||||||||||||||||||||
General and administrative expenses | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Portfolio management costs | ( | ( | ( | |||||||||||||||||||||||||||||
Loan acquisition costs | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Other expenses | ( | ( | ( | |||||||||||||||||||||||||||||
(Provision for) benefit from income taxes | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Segment Contribution | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Net Income | $ | |||||||||||||||||||||||||||||||
Non-cash amortization (expense), net | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||
(In Thousands) | Residential Consumer Mortgage Banking | Residential Investor Mortgage Banking | Investment Portfolio | Corporate/ Other | Total | |||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Net interest income (expense) | ( | |||||||||||||||||||||||||||||||
Non-interest income (loss) | ||||||||||||||||||||||||||||||||
Mortgage banking activities, net | ||||||||||||||||||||||||||||||||
Investment fair value changes, net | ( | ( | ( | |||||||||||||||||||||||||||||
HEI income, net | ||||||||||||||||||||||||||||||||
Other income, net | ( | |||||||||||||||||||||||||||||||
Realized gains, net | ||||||||||||||||||||||||||||||||
Total non-interest income (loss), net | ( | |||||||||||||||||||||||||||||||
General and administrative expenses | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Portfolio management costs | ( | ( | ( | |||||||||||||||||||||||||||||
Loan acquisition costs | ( | ( | ( | |||||||||||||||||||||||||||||
Other expenses | ( | ( | ( | |||||||||||||||||||||||||||||
(Provision for) Benefit from income taxes | ( | ( | ( | |||||||||||||||||||||||||||||
Segment Contribution | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Net Income | $ | |||||||||||||||||||||||||||||||
Non-cash amortization (expense), net | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||
(In Thousands) | Residential Consumer Mortgage Banking | Residential Investor Mortgage Banking | Investment Portfolio | Corporate/ Other | Total | |||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Net interest income (expense) | ( | ( | ||||||||||||||||||||||||||||||
Non-interest income (loss) | ||||||||||||||||||||||||||||||||
Mortgage banking activities, net | ||||||||||||||||||||||||||||||||
Investment fair value changes, net | ( | ( | ( | |||||||||||||||||||||||||||||
HEI income, net | ||||||||||||||||||||||||||||||||
Other income, net | ( | |||||||||||||||||||||||||||||||
Realized gains, net | ||||||||||||||||||||||||||||||||
Total non-interest income (loss), net | ( | |||||||||||||||||||||||||||||||
General and administrative expenses | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Portfolio management costs | ( | ( | ( | |||||||||||||||||||||||||||||
Loan acquisition costs | ( | ( | ( | |||||||||||||||||||||||||||||
Other expenses | ( | ( | ( | |||||||||||||||||||||||||||||
(Provision for) Benefit from income taxes | ( | ( | ||||||||||||||||||||||||||||||
Segment Contribution | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Net Income | $ | |||||||||||||||||||||||||||||||
Non-cash amortization (expense), net | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
(In Thousands) | Residential Consumer Mortgage Banking | Residential Investor Mortgage Banking | Investment Portfolio | Corporate/ Other | Total | |||||||||||||||||||||||||||
June 30, 2024 | ||||||||||||||||||||||||||||||||
Residential consumer loans | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Residential investor loans | ||||||||||||||||||||||||||||||||
Consolidated Agency multifamily loans | ||||||||||||||||||||||||||||||||
Real estate securities | ||||||||||||||||||||||||||||||||
Home equity investments | ||||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||||||||
Intangible assets | ||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||
Residential consumer loans | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Residential investor loans | ||||||||||||||||||||||||||||||||
Consolidated Agency multifamily loans | ||||||||||||||||||||||||||||||||
Real estate securities | ||||||||||||||||||||||||||||||||
Home equity investments | ||||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||||||||
Intangible assets | ||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(In Thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Residential Consumer Mortgage Banking Activities, Net: | ||||||||||||||||||||||||||
Changes in fair value of: | ||||||||||||||||||||||||||
Residential consumer loans, at fair value (1) | $ | $ | $ | $ | ||||||||||||||||||||||
Trading securities (2) | ||||||||||||||||||||||||||
Risk management derivatives (3) | ( | ( | ( | |||||||||||||||||||||||
Other income, net (4) | ||||||||||||||||||||||||||
Total residential consumer mortgage banking activities, net | ||||||||||||||||||||||||||
Residential Investor Mortgage Banking Activities, Net: | ||||||||||||||||||||||||||
Changes in fair value of: | ||||||||||||||||||||||||||
Residential investor term loans, at fair value | ( | |||||||||||||||||||||||||
Residential investor bridge loans, at fair value | ||||||||||||||||||||||||||
Risk management derivatives (3) | ( | ( | ||||||||||||||||||||||||
Other income, net (5) | ||||||||||||||||||||||||||
Total residential investor mortgage banking activities, net | ||||||||||||||||||||||||||
Mortgage Banking Activities, Net | $ | $ | $ | $ |
June 30, 2024 | Fair Value | Fair Value Measurements Using | ||||||||||||||||||||||||
(In Thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Residential consumer loans | $ | $ | $ | $ | ||||||||||||||||||||||
Residential investor loans | ||||||||||||||||||||||||||
Consolidated Agency multifamily loans | ||||||||||||||||||||||||||
Real estate securities | ||||||||||||||||||||||||||
HEI | ||||||||||||||||||||||||||
Servicer advance investments | ||||||||||||||||||||||||||
MSRs | ||||||||||||||||||||||||||
Excess MSRs | ||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
HEI securitization non-controlling interest | $ | $ | $ | $ | ||||||||||||||||||||||
Derivative liabilities | ||||||||||||||||||||||||||
ABS issued |
December 31, 2023 | Fair Value | Fair Value Measurements Using | ||||||||||||||||||||||||
(In Thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Residential consumer loans | $ | $ | $ | $ | ||||||||||||||||||||||
Residential investor loans | ||||||||||||||||||||||||||
Consolidated Agency multifamily loans | ||||||||||||||||||||||||||
Real estate securities | ||||||||||||||||||||||||||
HEI | ||||||||||||||||||||||||||
Servicer advance investments | ||||||||||||||||||||||||||
MSRs | ||||||||||||||||||||||||||
Excess MSRs | ||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
HEI securitization non-controlling interest | $ | $ | $ | $ | ||||||||||||||||||||||
Derivative liabilities | ||||||||||||||||||||||||||
ABS issued |
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Consumer Loans | Residential Investor Loans | Consolidated Agency Multifamily Loans | Trading Securities | AFS Securities | HEI | Servicer Advance Investments | Excess MSRs | MSRs and Other Investments | ||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance - December 31, 2023 | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Originations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal paydowns | ( | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Gains (losses) in net income, net | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains in OCI, net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other settlements, net (1) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance - June 30, 2024 | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Liabilities | ||||||||||||||||||||
Derivatives (2) | HEI Securitization Non-Controlling Interest | ABS Issued | ||||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Beginning balance - December 31, 2023 | $ | $ | $ | |||||||||||||||||
Acquisitions | ||||||||||||||||||||
Sales | ( | |||||||||||||||||||
Principal paydowns | ( | |||||||||||||||||||
Gains (losses) in net income, net | ( | |||||||||||||||||||
Other settlements, net (1) | ( | |||||||||||||||||||
Ending balance - June 30, 2024 | $ | $ | $ |
Included in Net Income (loss) | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(In Thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Residential consumer loans at Redwood | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
Residential investor loans | ( | ( | ( | ( | ||||||||||||||||||||||
Net investments in consolidated Sequoia entities (1) | ||||||||||||||||||||||||||
Net investments in consolidated Freddie Mac SLST entities (1) | ( | ( | ( | ( | ||||||||||||||||||||||
Net investments in consolidated Freddie Mac K-Series entities (1) | ||||||||||||||||||||||||||
Net investments in consolidated CAFL Term entities (1) | ||||||||||||||||||||||||||
Net investment in consolidated HEI securitization entities (1) | ||||||||||||||||||||||||||
Trading securities | ||||||||||||||||||||||||||
Available-for-sale securities | ( | ( | ||||||||||||||||||||||||
HEI at Redwood | ||||||||||||||||||||||||||
Servicer advance investments | ||||||||||||||||||||||||||
MSRs | ||||||||||||||||||||||||||
Excess MSRs | ( | ( | ||||||||||||||||||||||||
Loan purchase commitments | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Loan purchase commitments | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(In Thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Mortgage Banking Activities, Net | ||||||||||||||||||||||||||
Residential consumer loans held-for-sale | $ | $ | ( | $ | $ | |||||||||||||||||||||
Residential consumer loan purchase commitments | ||||||||||||||||||||||||||
Residential investor term loans held-for-sale | ( | |||||||||||||||||||||||||
Residential investor term loan interest rate lock commitments | ||||||||||||||||||||||||||
Residential investor bridge loans | ||||||||||||||||||||||||||
Trading securities (1) | ||||||||||||||||||||||||||
Risk management derivatives, net | ( | ( | ( | |||||||||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||||||||
Investment Fair Value Changes, Net | ||||||||||||||||||||||||||
Residential consumer loans held-for-investment, at Redwood (called Sequoia loans) | $ | $ | $ | $ | ||||||||||||||||||||||
Residential investor term loans held-for-sale | ( | ( | ( | ( | ||||||||||||||||||||||
Residential investor bridge loans held-for-investment | ( | ( | ( | ( | ||||||||||||||||||||||
Trading securities | ||||||||||||||||||||||||||
Servicer advance investments | ||||||||||||||||||||||||||
Excess MSRs | ( | ( | ||||||||||||||||||||||||
Net investments in Sequoia entities (3) | ||||||||||||||||||||||||||
Net investments in Freddie Mac SLST entities (3) | ( | ( | ( | ( | ||||||||||||||||||||||
Net investment in Freddie Mac K-Series entity (3) | ||||||||||||||||||||||||||
Net investments in CAFL entities (3) | ||||||||||||||||||||||||||
Other investments | ( | ( | ( | ( | ||||||||||||||||||||||
Risk management derivatives, net | ( | |||||||||||||||||||||||||
Credit recoveries (losses) on AFS securities | ( | ( | ||||||||||||||||||||||||
Other | ( | ( | ||||||||||||||||||||||||
Total investment fair value changes, net | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
HEI income, Net | ||||||||||||||||||||||||||
HEI at Redwood | $ | $ | $ | $ | ||||||||||||||||||||||
Net investments in HEI securitization entities (3) | ||||||||||||||||||||||||||
Total HEI income, net | $ | $ | $ | $ | ||||||||||||||||||||||
Other Income | ||||||||||||||||||||||||||
MSRs | $ | $ | $ | $ | ||||||||||||||||||||||
Other | ( | ( | ( | ( | ||||||||||||||||||||||
Total other income (4) | $ | $ | $ | $ | ||||||||||||||||||||||
Total Market Valuation Gains, Net | $ | $ | $ | $ |
June 30, 2024 | Fair Value | Input Values | ||||||||||||||||||||||||||||||||||||
(Dollars in Thousands, except Input Values) | Unobservable Input | Range | Weighted Average(1) | |||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Residential consumer loans: | ||||||||||||||||||||||||||||||||||||||
Jumbo loans | $ | Senior credit spread to TBA price(2) | $ | - | $ | $ | ||||||||||||||||||||||||||||||||
Subordinate credit spread(2) | - | bps | bps | |||||||||||||||||||||||||||||||||||
Senior credit support(2) | - | % | % | |||||||||||||||||||||||||||||||||||
IO discount rate(2) | - | % | % | |||||||||||||||||||||||||||||||||||
Prepayment rate (annual CPR)(2) | - | % | % | |||||||||||||||||||||||||||||||||||
Jumbo loans committed to sell | Whole loan committed sales price | $ | - | $ | $ | |||||||||||||||||||||||||||||||||
Loans held by Sequoia (3) | Liability price | N/A | N/A | |||||||||||||||||||||||||||||||||||
Loans held by Freddie Mac SLST (3) | Liability price | N/A | N/A | |||||||||||||||||||||||||||||||||||
Residential investor loans: | ||||||||||||||||||||||||||||||||||||||
Residential investor term loans | Senior credit spread(2) | - | bps | bps | ||||||||||||||||||||||||||||||||||
Subordinate credit spread(2) | - | bps | bps | |||||||||||||||||||||||||||||||||||
Senior credit support(2) | - | % | % | |||||||||||||||||||||||||||||||||||
Prepayment rate (annual CPR)(2) | - | % | % | |||||||||||||||||||||||||||||||||||
Dollar price of non-performing loans | $ | - | $ | $ | ||||||||||||||||||||||||||||||||||
Residential investor term loans held by CAFL (3) | Liability price | N/A | N/A | |||||||||||||||||||||||||||||||||||
Residential investor bridge loans held by CAFL (3) | Liability price | N/A | N/A | |||||||||||||||||||||||||||||||||||
Residential investor bridge loans | Whole loan discount rate | - | % | % | ||||||||||||||||||||||||||||||||||
Whole loan spread | - | bps | bps | |||||||||||||||||||||||||||||||||||
Dollar price of non-performing loans | $ | - | $ | $ | ||||||||||||||||||||||||||||||||||
Multifamily loans held by Freddie Mac K-Series (3) | Liability price | N/A | N/A | |||||||||||||||||||||||||||||||||||
Trading and AFS securities | Discount rate | - | % | % | ||||||||||||||||||||||||||||||||||
Prepayment rate (annual CPR) | - | % | % | |||||||||||||||||||||||||||||||||||
Default rate | - | % | % | |||||||||||||||||||||||||||||||||||
Loss severity | - | % | % | |||||||||||||||||||||||||||||||||||
Home Equity Investments (HEI) | Discount rate | - | % | % | ||||||||||||||||||||||||||||||||||
Prepayment rate (annual CPR) | - | % | % | |||||||||||||||||||||||||||||||||||
Home price appreciation (depreciation) | - | % | % | |||||||||||||||||||||||||||||||||||
HEI held by HEI securitization entities(3) | Liability price | N/A | N/A | |||||||||||||||||||||||||||||||||||
Servicer advance investments | Discount rate | - | % | % | ||||||||||||||||||||||||||||||||||
Prepayment rate (annual CPR) | - | % | % | |||||||||||||||||||||||||||||||||||
Expected remaining life (4) | - | yrs | yrs | |||||||||||||||||||||||||||||||||||
Mortgage servicing income | - | bps | bps | |||||||||||||||||||||||||||||||||||
MSRs | Discount rate | - | % | % | ||||||||||||||||||||||||||||||||||
Prepayment rate (annual CPR) | - | % | % | |||||||||||||||||||||||||||||||||||
Per loan annual cost to service | $ | - | $ | $ | ||||||||||||||||||||||||||||||||||
June 30, 2024 | Fair Value | Input Values | ||||||||||||||||||||||||||||||||||||
(Dollars in Thousands, except Input Values) | Unobservable Input | Range | Weighted Average (1) | |||||||||||||||||||||||||||||||||||
Assets (continued) | ||||||||||||||||||||||||||||||||||||||
Excess MSRs | $ | Discount rate | - | % | % | |||||||||||||||||||||||||||||||||
Prepayment rate (annual CPR) | - | % | % | |||||||||||||||||||||||||||||||||||
Excess mortgage servicing amount | - | bps | bps | |||||||||||||||||||||||||||||||||||
Residential consumer loan purchase commitments, net | Senior Credit Spread to TBA price | $ | - | $ | | |||||||||||||||||||||||||||||||||
Subordinate Credit Spread to Swap rate | - | bps | bps | |||||||||||||||||||||||||||||||||||
Senior Credit Support | - | % | % | |||||||||||||||||||||||||||||||||||
IO Discount Rate | - | % | % | |||||||||||||||||||||||||||||||||||
Prepayment rate (Annual CPR) | - | % | % | |||||||||||||||||||||||||||||||||||
Pull-through rate | - | % | % | |||||||||||||||||||||||||||||||||||
Committed Sales Price | $ | - | $ | $ | ||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||
ABS issued (3): | ||||||||||||||||||||||||||||||||||||||
At consolidated Sequoia entities | Discount rate | - | % | % | ||||||||||||||||||||||||||||||||||
Prepayment rate (annual CPR) | - | % | % | |||||||||||||||||||||||||||||||||||
Default rate | - | % | % | |||||||||||||||||||||||||||||||||||
Loss severity | - | % | % | |||||||||||||||||||||||||||||||||||
At consolidated CAFL Term entities | Discount rate | - | % | % | ||||||||||||||||||||||||||||||||||
Prepayment rate (annual CPR) | - | % | % | |||||||||||||||||||||||||||||||||||
Default rate | - | % | % | |||||||||||||||||||||||||||||||||||
Loss severity | - | % | % | |||||||||||||||||||||||||||||||||||
At consolidated Freddie Mac SLST entities | Discount rate | - | % | % | ||||||||||||||||||||||||||||||||||
Prepayment rate (annual CPR) | - | % | % | |||||||||||||||||||||||||||||||||||
Default rate | - | % | % | |||||||||||||||||||||||||||||||||||
Loss severity | - | % | % | |||||||||||||||||||||||||||||||||||
At consolidated Freddie Mac K-Series entities (3) | Discount rate | - | % | % | ||||||||||||||||||||||||||||||||||
At consolidated HEI entities (5) | Discount rate | - | % | % | ||||||||||||||||||||||||||||||||||
Prepayment rate (annual CPR) | - | % | % | |||||||||||||||||||||||||||||||||||
Home price appreciation (depreciation) | - | % | % | |||||||||||||||||||||||||||||||||||
At consolidated CAFL Bridge entities | Discount rate | - | % | % | ||||||||||||||||||||||||||||||||||
Prepayment rate (annual CPR) | - | % | % | |||||||||||||||||||||||||||||||||||
Default rate | - | % | % | |||||||||||||||||||||||||||||||||||
Loss severity | - | % | % | |||||||||||||||||||||||||||||||||||
June 30, 2024 | December 31, 2023 | |||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||
Guarantee obligations (1) | $ | $ | $ | $ | ||||||||||||||||||||||
ABS issued, net | ||||||||||||||||||||||||||
at fair value | $ | $ | $ | $ | ||||||||||||||||||||||
at amortized cost | ||||||||||||||||||||||||||
Total ABS issued, net | $ | $ | $ | $ | ||||||||||||||||||||||
Debt obligation facilities and other financing | $ | $ | $ | $ | ||||||||||||||||||||||
Convertible notes, net | ||||||||||||||||||||||||||
Trust preferred securities and subordinated notes, net | ||||||||||||||||||||||||||
Senior Notes | ||||||||||||||||||||||||||
Total debt obligations, net | $ | $ | $ | $ |
June 30, 2024 | Freddie Mac | |||||||||||||||||||||||||
(In Thousands) | Redwood | Sequoia | SLST | Total | ||||||||||||||||||||||
Held-for-sale at fair value | $ | $ | $ | $ | ||||||||||||||||||||||
Held-for-investment at fair value | ||||||||||||||||||||||||||
Total Residential Consumer Loans | $ | $ | $ | $ |
December 31, 2023 | Freddie Mac | |||||||||||||||||||||||||
(In Thousands) | Redwood | Sequoia | SLST | Total | ||||||||||||||||||||||
Held-for-sale at fair value | $ | $ | $ | $ | ||||||||||||||||||||||
Held-for-investment at fair value | ||||||||||||||||||||||||||
Total Residential Consumer Loans | $ | $ | $ | $ |
(Dollars in Thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||
Unpaid principal balance | $ | $ | ||||||||||||
Fair value of loans | $ | $ | ||||||||||||
Market value of loans pledged as collateral under short-term borrowing agreements | $ | $ | ||||||||||||
Weighted average coupon | % | % | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(In Thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Principal balance of loans acquired | $ | $ | $ | $ | ||||||||||||||||||||||
Principal balance of loans sold | ||||||||||||||||||||||||||
Principal balance of loans transferred from HFS to HFI | ||||||||||||||||||||||||||
Net market valuation gains (losses) recorded (1) | ( |
June 30, 2024 | Freddie Mac | |||||||||||||
(Dollars in Thousands) | Sequoia | SLST | ||||||||||||
Unpaid principal balance | $ | $ | ||||||||||||
Average loan balance (UPB) | $ | $ | ||||||||||||
Fair value of loans (1) | $ | $ | ||||||||||||
Weighted average coupon | % | % | ||||||||||||
Delinquency information | ||||||||||||||
Unpaid principal balance of loans with 90+ day delinquencies (2) | $ | $ | ||||||||||||
Average 90+ days delinquent balance (UPB) | $ | $ | ||||||||||||
Unpaid principal balance of loans in foreclosure | $ | $ | ||||||||||||
Average foreclosure balance (UPB) | $ | $ | ||||||||||||
December 31, 2023 | Freddie Mac | |||||||||||||
(Dollars in Thousands) | Sequoia | SLST | ||||||||||||
Unpaid principal balance | $ | $ | ||||||||||||
Average loan balance (UPB) | $ | $ | ||||||||||||
Fair value of loans (1) | $ | $ | ||||||||||||
Weighted average coupon | % | % | ||||||||||||
Delinquency information | ||||||||||||||
Unpaid principal balance of loans with 90+ day delinquencies (2) | $ | $ | ||||||||||||
Average 90+ days delinquent balance (UPB) | $ | $ | ||||||||||||
Unpaid principal balance of loans in foreclosure | $ | $ | ||||||||||||
Average foreclosure balance (UPB) | $ | $ | ||||||||||||
Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | |||||||||||||||||||||||||
Freddie Mac | Freddie Mac | |||||||||||||||||||||||||
(In Thousands) | Sequoia | SLST | Sequoia | SLST | ||||||||||||||||||||||
Principal value of loans transferred from HFS to HFI (1) | $ | N/A | N/A | N/A | ||||||||||||||||||||||
Net market valuation gains (losses) recorded | ( | ( | ( | ( |
Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |||||||||||||||||||||||||
Freddie Mac | Freddie Mac | |||||||||||||||||||||||||
(In Thousands) | Sequoia | SLST | Sequoia | SLST | ||||||||||||||||||||||
Principal value of loans transferred from HFS to HFI (1) | $ | N/A | $ | N/A | ||||||||||||||||||||||
Net market valuation gains (losses) recorded | ( | ( | ( |
June 30, 2024 | Residential Investor Term | Residential Investor Bridge | ||||||||||||||||||||||||||||||
(In Thousands) | Redwood | CAFL | Redwood | CAFL | Total | |||||||||||||||||||||||||||
Held-for-sale at fair value | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Held-for-investment at fair value | ||||||||||||||||||||||||||||||||
Total Residential Investor Loans | $ | $ | $ | $ | $ |
December 31, 2023 | Residential Investor Term | Residential Investor Bridge | ||||||||||||||||||||||||||||||
(In Thousands) | Redwood | CAFL | Redwood | CAFL | Total | |||||||||||||||||||||||||||
Held-for-sale at fair value | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Held-for-investment at fair value | ||||||||||||||||||||||||||||||||
Total Residential Investor Loans | $ | $ | $ | $ | $ |
Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | |||||||||||||||||||||||||
(In Thousands) | Term at Redwood | Bridge at Redwood | Term at Redwood | Bridge at Redwood | ||||||||||||||||||||||
Principal balance of loans originated | $ | $ | ||||||||||||||||||||||||
Principal balance of loans acquired | ||||||||||||||||||||||||||
Principal balance of loans sold to third parties (1) | ||||||||||||||||||||||||||
Fair value of loans transferred (2) | ( | ( | ||||||||||||||||||||||||
Mortgage banking activities income (loss) recorded (3) | ( | |||||||||||||||||||||||||
Investment fair value changes recorded | ( | ( | ( | ( |
Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |||||||||||||||||||||||||
(In Thousands) | Term at Redwood | Bridge at Redwood | Term at Redwood | Bridge at Redwood | ||||||||||||||||||||||
Principal balance of loans originated | ||||||||||||||||||||||||||
Principal balance of loans acquired | ||||||||||||||||||||||||||
Principal balance of loans sold to third parties (1) | ||||||||||||||||||||||||||
Fair value of loans transferred (2) | ( | ( | ||||||||||||||||||||||||
Mortgage banking activities income recorded (3) | ||||||||||||||||||||||||||
Investment fair value changes recorded | ( | ( | ( | ( |
Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | |||||||||||||||||||||||||
(In Thousands) | Term at CAFL | Bridge at CAFL | Term at CAFL | Bridge at CAFL | ||||||||||||||||||||||
Net market valuation gains (losses) recorded(1) | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||
Fair value of loans transferred to HFI | $ | $ |
Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |||||||||||||||||||||||||
(In Thousands) | Term at CAFL | Bridge at CAFL | Term at CAFL | Bridge at CAFL | ||||||||||||||||||||||
Net market valuation gains (losses) recorded(1) | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||
Fair value of loans transferred to HFI | $ | $ |
June 30, 2024 | Term at Redwood | Term at CAFL(1) | Bridge at Redwood | Bridge at CAFL | ||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||
Unpaid principal balance | $ | $ | $ | $ | ||||||||||||||||||||||
Average UPB of loans | $ | $ | $ | $ | ||||||||||||||||||||||
Fair value of loans | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted average coupon | % | % | % | % | ||||||||||||||||||||||
Weighted average remaining loan term (years) | ||||||||||||||||||||||||||
Market value of loans pledged as collateral under debt facilities | $ | N/A | $ | N/A | ||||||||||||||||||||||
Delinquency information | ||||||||||||||||||||||||||
Unpaid principal balance of loans with 90+ day delinquencies (2) | $ | $ | $ | $ | ||||||||||||||||||||||
Average UPB of 90+ days delinquent loans (2) | $ | $ | $ | $ | ||||||||||||||||||||||
Fair value of loans with 90+ day delinquencies (2) | $ | N/A | $ | N/A | ||||||||||||||||||||||
Unpaid principal balance of loans in foreclosure (3) | $ | $ | $ | $ | ||||||||||||||||||||||
Average UPB of loans in foreclosure (3) | $ | $ | $ | $ | ||||||||||||||||||||||
Fair value of loans in foreclosure (3) | $ | N/A | $ | N/A |
December 31, 2023 | Term at Redwood | Term at CAFL(1) | Bridge at Redwood | Bridge at CAFL | ||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||
Unpaid principal balance | $ | $ | $ | $ | ||||||||||||||||||||||
Average UPB of loans | $ | $ | $ | $ | ||||||||||||||||||||||
Fair value of loans | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted average coupon | % | % | % | % | ||||||||||||||||||||||
Weighted average remaining loan term (years) | ||||||||||||||||||||||||||
Market value of loans pledged as collateral under debt facilities | $ | N/A | $ | N/A | ||||||||||||||||||||||
Delinquency information | ||||||||||||||||||||||||||
Unpaid principal balance of loans with 90+ day delinquencies (2) | $ | $ | $ | $ | ||||||||||||||||||||||
Average UPB of 90+ days delinquent loans (2) | $ | $ | $ | $ | ||||||||||||||||||||||
Fair value of loans with 90+ day delinquencies (2) | $ | N/A | $ | N/A | ||||||||||||||||||||||
Unpaid principal balance of loans in foreclosure (3) | $ | $ | $ | $ | ||||||||||||||||||||||
Average UPB of loans in foreclosure (3) | $ | $ | $ | $ | ||||||||||||||||||||||
Fair value of loans in foreclosure (3) | $ | N/A | $ | N/A |
June 30, 2024 | Term at Redwood | Term at CAFL(1) | Bridge at Redwood | Bridge at CAFL(1) | ||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||
Term | ||||||||||||||||||||||||||
Single family rental | — | — | ||||||||||||||||||||||||
Multifamily | — | — | ||||||||||||||||||||||||
Bridge | ||||||||||||||||||||||||||
Renovate / Build for Rent ("BFR")(2) | — | — | ||||||||||||||||||||||||
Single Asset Bridge ("SAB")(3) | — | — | ||||||||||||||||||||||||
Multifamily(4) | — | — | ||||||||||||||||||||||||
Third-Party Originated | — | — | ||||||||||||||||||||||||
Total Residential Investor Loans | $ | $ | $ | $ |
(Dollars in Thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||
Unpaid principal balance | $ | $ | ||||||||||||
Fair value of loans | $ | $ | ||||||||||||
Weighted average coupon | % | % | ||||||||||||
Weighted average remaining loan term (years) | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(In Thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Net market valuation gains (losses) recorded (1) | $ | $ | ( | $ | $ | ( |
(In Thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||
Trading | $ | $ | ||||||||||||
Available-for-sale | ||||||||||||||
Total Real Estate Securities | $ | $ |
(In Thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||
Senior | ||||||||||||||
Interest-only securities (1) | $ | $ | ||||||||||||
Total Senior | ||||||||||||||
Subordinate | ||||||||||||||
Multifamily securities | ||||||||||||||
Other third-party securities | ||||||||||||||
Total Subordinate | ||||||||||||||
Total Trading Securities | $ | $ |
(In Thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||
Senior (1) | $ | $ | ||||||||||||
Subordinate | ||||||||||||||
Total Trading Securities | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(In Thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Fair value of securities acquired | $ | $ | $ | $ | ||||||||||||||||||||||
Fair value of securities sold | ||||||||||||||||||||||||||
Net market valuation gains (losses) recorded (1) |
(In Thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||
Senior | ||||||||||||||
Other third-party securities | $ | $ | ||||||||||||
Total Senior | ||||||||||||||
Mezzanine | ||||||||||||||
Multifamily securities | $ | $ | ||||||||||||
Other third-party securities | ||||||||||||||
Total Mezzanine | ||||||||||||||
Subordinate | ||||||||||||||
Sequoia securities | $ | $ | ||||||||||||
Multifamily securities | ||||||||||||||
Other third-party securities | ||||||||||||||
Total Subordinate | ||||||||||||||
Total AFS Securities | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(In Thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Fair value of securities acquired | $ | $ | $ | $ | ||||||||||||||||||||||
Fair value of securities sold | ||||||||||||||||||||||||||
Net unrealized gains (losses) on AFS securities (1) | ( |
June 30, 2024 | ||||||||||||||||||||||||||
(In Thousands) | Senior | Mezzanine | Subordinate | Total | ||||||||||||||||||||||
Principal balance | $ | $ | $ | $ | ||||||||||||||||||||||
Credit reserve | ( | ( | ||||||||||||||||||||||||
Unamortized discount, net | ( | ( | ( | ( | ||||||||||||||||||||||
Amortized cost | ||||||||||||||||||||||||||
Gross unrealized gains | ||||||||||||||||||||||||||
Gross unrealized losses | ( | ( | ( | |||||||||||||||||||||||
CECL allowance | ( | ( | ||||||||||||||||||||||||
Carrying Value | $ | $ | $ | $ |
December 31, 2023 | ||||||||||||||||||||||||||
(In Thousands) | Senior | Mezzanine | Subordinate | Total | ||||||||||||||||||||||
Principal balance | $ | $ | $ | $ | ||||||||||||||||||||||
Credit reserve | ( | ( | ||||||||||||||||||||||||
Unamortized discount, net | ( | ( | ||||||||||||||||||||||||
Amortized cost | ||||||||||||||||||||||||||
Gross unrealized gains | ||||||||||||||||||||||||||
Gross unrealized losses | ( | ( | ||||||||||||||||||||||||
CECL allowance | ( | ( | ||||||||||||||||||||||||
Carrying Value | $ | $ | $ | $ |
Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | |||||||||||||||||||||||||
Credit Reserve | Unamortized Discount, Net | Credit Reserve | Unamortized Discount, Net | |||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | ||||||||||||||||||||||
Amortization of net discount | ( | ( | ||||||||||||||||||||||||
Realized credit recoveries (losses), net | ||||||||||||||||||||||||||
Acquisitions | ||||||||||||||||||||||||||
Sales, calls, other | ||||||||||||||||||||||||||
Transfers to (release of) credit reserves, net | ( | ( | ||||||||||||||||||||||||
Ending Balance | $ | $ | $ | $ |
Less Than 12 Consecutive Months | 12 Consecutive Months or Longer | |||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||
June 30, 2024 | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
December 31, 2023 | ( | ( |
June 30, 2024 | Subordinate Securities | |||||||
Default rate | ||||||||
Loss severity |
Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | |||||||||||||
(In Thousands) | ||||||||||||||
Beginning balance allowance for credit losses | $ | $ | ||||||||||||
Additions to allowance for credit losses on securities for which credit losses were not previously recorded | ||||||||||||||
Additional increases (or decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period | ( | ( | ||||||||||||
Reduction to allowance for securities sold during the period | ||||||||||||||
Ending balance of allowance for credit losses | $ | $ |
(In Thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||
HEI at Redwood | $ | $ | ||||||||||||
HEI held at consolidated HEI securitization entities | ||||||||||||||
Total Home Equity Investments | $ | $ |
Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | |||||||||||||||||||||||||
(In Thousands) | HEI at Redwood | Securitized HEI | HEI at Redwood | Securitized HEI | ||||||||||||||||||||||
Fair value of HEI purchased and originated | $ | $ | $ | $ | ||||||||||||||||||||||
Net market valuation gains (losses) recorded | ||||||||||||||||||||||||||
Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |||||||||||||||||||||||||
(In Thousands) | HEI at Redwood | Securitized HEI | HEI at Redwood | Securitized HEI | ||||||||||||||||||||||
Fair value of HEI purchased and originated | $ | $ | $ | $ | ||||||||||||||||||||||
Net market valuation gains (losses) recorded | ||||||||||||||||||||||||||
(In Thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | ||||||||||||
Net market valuation gains recorded on HEI at Redwood | $ | $ | ||||||||||||
Net market valuation gains recorded on Securitized HEI | ||||||||||||||
Net market valuation (losses) recorded on ABS Issued from HEI securitizations(1) | ( | ( | ||||||||||||
Net market valuation (losses) recorded on non-controlling interests in HEI securitizations | ( | ( | ||||||||||||
Total HEI income, net | $ | $ |
(In Thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | ||||||||||||
Net market valuation gains recorded on HEI at Redwood | $ | $ | ||||||||||||
Net market valuation gains recorded on Securitized HEI | ||||||||||||||
Net market valuation (losses) recorded on ABS Issued from HEI securitizations(1) | ( | ( | ||||||||||||
Net market valuation (losses) recorded on non-controlling interests in HEI securitizations | ( | ( | ||||||||||||
Total HEI income, net | $ | $ |
June 30, 2024 | December 31, 2023 | |||||||||||||||||||||||||
(Dollars in Thousands) | HEI at Redwood | Securitized HEI | HEI at Redwood | Securitized HEI | ||||||||||||||||||||||
Number of HEI contracts | ||||||||||||||||||||||||||
Average initial amount of contract | $ | $ | $ | $ |
(In Thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||
Servicer advance investments | $ | $ | ||||||||||||
Strategic investments | ||||||||||||||
Excess MSRs | ||||||||||||||
MSRs | ||||||||||||||
Other | ||||||||||||||
Total Other Investments | $ | $ |
(In Thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||
Principal and interest advances | $ | $ | ||||||||||||
Escrow advances (taxes and insurance advances) | ||||||||||||||
Corporate advances | ||||||||||||||
Total Servicer Advance Receivables | $ | $ |
June 30, 2024 | December 31, 2023 | |||||||||||||||||||||||||
Fair Value | Notional Amount | Fair Value | Notional Amount | |||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||
Assets - Risk Management Derivatives | ||||||||||||||||||||||||||
Interest rate swaps | $ | $ | $ | $ | ||||||||||||||||||||||
TBAs | ||||||||||||||||||||||||||
Interest rate futures | ||||||||||||||||||||||||||
Swaptions | ||||||||||||||||||||||||||
Assets - Other Derivatives | ||||||||||||||||||||||||||
Loan purchase and interest rate lock commitments | ||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities - Risk Management Derivatives | ||||||||||||||||||||||||||
TBAs | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Interest rate futures | ( | ( | ||||||||||||||||||||||||
Liabilities - Other Derivatives | ||||||||||||||||||||||||||
Loan purchase commitments | ( | ( | ||||||||||||||||||||||||
Total Liabilities | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Total Derivative Financial Instruments, Net | $ | $ | $ | ( | $ |
Gross Amounts of Recognized Assets (Liabilities) | Gross Amounts Offset in Consolidated Balance Sheet | Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet | Gross Amounts Not Offset in Consolidated Balance Sheet (1) | Net Amount | ||||||||||||||||||||||||||||||||||
June 30, 2024 (In Thousands) | Financial Instruments | Cash Collateral (Received) Pledged | ||||||||||||||||||||||||||||||||||||
Assets (2) | ||||||||||||||||||||||||||||||||||||||
Interest rate agreements | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
TBAs | ( | ( | ||||||||||||||||||||||||||||||||||||
Futures | ( | |||||||||||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
Liabilities (2) | ||||||||||||||||||||||||||||||||||||||
TBAs | $ | ( | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||
Futures | ( | ( | ||||||||||||||||||||||||||||||||||||
Loan warehouse debt | ( | ( | ||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | ( | $ | $ | ( | $ | $ | $ |
Gross Amounts of Recognized Assets (Liabilities) | Gross Amounts Offset in Consolidated Balance Sheet | Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet | Gross Amounts Not Offset in Consolidated Balance Sheet (1) | Net Amount | ||||||||||||||||||||||||||||||||||
December 31, 2023 (In Thousands) | Financial Instruments | Cash Collateral (Received) Pledged | ||||||||||||||||||||||||||||||||||||
Assets (2) | ||||||||||||||||||||||||||||||||||||||
Interest rate agreements | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
TBAs | ( | |||||||||||||||||||||||||||||||||||||
Futures | ||||||||||||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Liabilities (2) | ||||||||||||||||||||||||||||||||||||||
TBAs | $ | ( | $ | $ | ( | $ | $ | $ | ( | |||||||||||||||||||||||||||||
Futures | ( | ( | ||||||||||||||||||||||||||||||||||||
Loan warehouse debt | ( | ( | ||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | ( | $ | $ | ( | $ | $ | $ | ( |
(In Thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||
Real estate owned | $ | $ | ||||||||||||
Accrued interest receivable | ||||||||||||||
Investment receivable | ||||||||||||||
Deferred tax asset | ||||||||||||||
Intangible assets | ||||||||||||||
Goodwill | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Margin receivable | ||||||||||||||
Fixed assets and leasehold improvements (1) | ||||||||||||||
Other | ||||||||||||||
Total Other Assets | $ | $ |
Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||
(In Thousands) | Bridge (1) | Sequoia | Freddie Mac SLST | Term at CAFL | Total | |||||||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | 2684 | |||||||||||||||||||||||||||
Transfers to REO | ||||||||||||||||||||||||||||||||
Liquidations (2) | ( | ( | ( | |||||||||||||||||||||||||||||
Changes in fair value, net | ( | ( | ||||||||||||||||||||||||||||||
Balance at End of Period | $ | $ | $ | $ | $ |
Number of REO assets | Redwood Bridge | Sequoia | Freddie Mac SLST | Term at CAFL | Total | |||||||||||||||||||||||||||
At June 30, 2024 | ||||||||||||||||||||||||||||||||
At December 31, 2023 |
Intangible Assets at Acquisition | Accumulated Amortization at June 30, 2024 | Carrying Value at June 30, 2024 | Weighted Average Amortization Period (in years) | |||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||
Borrower network | $ | $ | ( | $ | ||||||||||||||||||||||
Broker network | ( | |||||||||||||||||||||||||
Non-compete agreements | ( | |||||||||||||||||||||||||
Tradenames | ( | |||||||||||||||||||||||||
Developed technology | ( | |||||||||||||||||||||||||
Loan administration fees on existing loan assets | ( | |||||||||||||||||||||||||
Total | $ | $ | ( | $ |
(In Thousands) | June 30, 2024 | |||||||
2024 (6 months) | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 and thereafter | ||||||||
Total Future Intangible Asset Amortization | $ |
(In Thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||
Payable to noncontrolling interests | $ | $ | ||||||||||||
Accrued interest payable | ||||||||||||||
Margin payable | ||||||||||||||
Accrued compensation | ||||||||||||||
Operating lease liabilities | ||||||||||||||
Accrued operating expenses | ||||||||||||||
Current accounts payable | ||||||||||||||
Guarantee obligations | ||||||||||||||
Accrued taxes payable | ||||||||||||||
Unsettled trades | ||||||||||||||
Residential consumer loan and MSR repurchase reserve | ||||||||||||||
Bridge loan holdbacks (1) | ||||||||||||||
Preferred stock dividends payable | ||||||||||||||
Other | ||||||||||||||
Total Accrued Expenses and Other Liabilities | $ | $ |
June 30, 2024 | Sequoia | CAFL(1) | Freddie Mac SLST(1) | Freddie Mac K-Series | Servicing Investment | HEI | Total Consolidated VIEs | |||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Residential consumer loans, held-for-investment | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Residential investor loans, held-for-investment | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated Agency multifamily loans | ||||||||||||||||||||||||||||||||||||||||||||
Home equity investments | ||||||||||||||||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | ||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Short-term debt | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Accrued interest payable | ||||||||||||||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities issued | ||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Value of our investments in VIEs(1) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Number of VIEs |
December 31, 2023 | Sequoia | CAFL(1) | Freddie Mac SLST(1) | Freddie Mac K-Series | Servicing Investment | HEI | Total Consolidated VIEs | |||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Residential consumer loans, held-for-investment | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Residential investor loans, held-for-investment | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated Agency multifamily loans | ||||||||||||||||||||||||||||||||||||||||||||
Home equity investments | ||||||||||||||||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | ||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Short-term debt | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Accrued interest payable | ||||||||||||||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities issued | ||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Value of our investments in VIEs(1) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Number of VIEs |
Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
Sequoia | CAFL | Freddie Mac SLST | Freddie Mac K-Series | Servicing Investment | HEI | Total Consolidated VIEs | ||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Net interest income | ||||||||||||||||||||||||||||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||||||||||||||||||
Investment fair value changes, net | ( | |||||||||||||||||||||||||||||||||||||||||||
HEI income, net | ||||||||||||||||||||||||||||||||||||||||||||
Other income | ||||||||||||||||||||||||||||||||||||||||||||
Total non-interest income, net | ( | |||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Other expenses | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) from Consolidated VIEs | $ | $ | $ | ( | $ | $ | $ | $ |
Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
Sequoia | CAFL | Freddie Mac SLST | Freddie Mac K-Series | Servicing Investment | HEI | Total Consolidated VIEs | ||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Net interest income | ||||||||||||||||||||||||||||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||||||||||||||||||
Investment fair value changes, net | ( | |||||||||||||||||||||||||||||||||||||||||||
HEI income, net | ||||||||||||||||||||||||||||||||||||||||||||
Other income | ||||||||||||||||||||||||||||||||||||||||||||
Realized gains, net | ||||||||||||||||||||||||||||||||||||||||||||
Total non-interest income, net | ( | |||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Other expenses | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) from Consolidated VIEs | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Sequoia | CAFL | Freddie Mac SLST | Freddie Mac K-Series | Servicing Investment | HEI | Total Consolidated VIEs | ||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Net interest income | ||||||||||||||||||||||||||||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||||||||||||||||||
Investment fair value changes, net | ( | |||||||||||||||||||||||||||||||||||||||||||
HEI income, net | ||||||||||||||||||||||||||||||||||||||||||||
Other income | ||||||||||||||||||||||||||||||||||||||||||||
Total non-interest income, net | ( | |||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Other expenses | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) from Consolidated VIEs | $ | $ | $ | ( | $ | $ | $ | $ |
Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Sequoia | CAFL | Freddie Mac SLST | Freddie Mac K-Series | Servicing Investment | HEI | Total Consolidated VIEs | ||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Net interest income | ||||||||||||||||||||||||||||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||||||||||||||||||
Investment fair value changes, net | ( | |||||||||||||||||||||||||||||||||||||||||||
Other income | ||||||||||||||||||||||||||||||||||||||||||||
Total non-interest income, net | ( | |||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||
Other expenses | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) from Consolidated VIEs | $ | $ | $ | $ | $ | $ | $ |
(In Thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||
On-balance sheet assets, at fair value: | ||||||||||||||
Interest-only, senior and subordinate securities, classified as trading | $ | $ | ||||||||||||
Subordinate securities, classified as AFS | ||||||||||||||
Mortgage servicing rights | ||||||||||||||
Maximum loss exposure (1) | $ | $ | ||||||||||||
Assets transferred: | ||||||||||||||
Principal balance of loans outstanding | $ | $ | ||||||||||||
Principal balance of loans 30+ days delinquent |
June 30, 2024 | ||||||||||||||||||||||||||||||||||||||
Sequoia | CAFL (1) | Freddie Mac SLST (2) | Freddie Mac K-Series | HEI | Total | |||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||
Certificates with principal balance | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Interest-only certificates at fair value | ||||||||||||||||||||||||||||||||||||||
Market valuation adjustments | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
Unamortized debt discount and deferred debt issuance costs | ( | ( | ||||||||||||||||||||||||||||||||||||
ABS Issued, Net | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Range of weighted average interest rates, by series(3) | ||||||||||||||||||||||||||||||||||||||
Stated maturities(3) | 2024-2054 | 2027-2033 | 2028-2059 | 2025 | 2052-2053 | |||||||||||||||||||||||||||||||||
Number of series |
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Sequoia | CAFL(1) | Freddie Mac SLST (2) | Freddie Mac K-Series | HEI | Total | |||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||
Certificates with principal balance | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Interest-only certificates at fair value | ||||||||||||||||||||||||||||||||||||||
Market valuation adjustments | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
Unamortized debt discount and deferred debt issuance costs | ( | ( | ( | |||||||||||||||||||||||||||||||||||
ABS Issued, Net | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Range of weighted average interest rates, by series(3) | % | |||||||||||||||||||||||||||||||||||||
Stated maturities(3) | 2024-2053 | 2027-2033 | 2028-2059 | 2025 | 2052-2053 | |||||||||||||||||||||||||||||||||
Number of series |
June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | Number of Facilities or Issuances | Principal Amount | Carrying Value | Facility Capacity | Weighted Average Interest Rate (1) | Final Stated Maturity | Carrying Value of Collateral | |||||||||||||||||||||||||||||||||||||
Short-Term Warehouse Facilities and Other | ||||||||||||||||||||||||||||||||||||||||||||
Residential consumer loan warehouse facilities | $ | $ | $ | % | 10/2024-5/2025 | $ | ||||||||||||||||||||||||||||||||||||||
Residential investor loan warehouse facilities | % | 6/2025 | ||||||||||||||||||||||||||||||||||||||||||
Real estate securities repurchase facilities | % | 7/2024-9/2024 | ||||||||||||||||||||||||||||||||||||||||||
Residential MSR warehouse facility | % | 10/2024 | ||||||||||||||||||||||||||||||||||||||||||
HEI warehouse facility | % | 11/2024 | ||||||||||||||||||||||||||||||||||||||||||
Servicer advance financing | % | 12/2024 | ||||||||||||||||||||||||||||||||||||||||||
Recourse Subordinate Securities Financings: | ||||||||||||||||||||||||||||||||||||||||||||
Sequoia securities (3) | N/A | % | 9/2024 | |||||||||||||||||||||||||||||||||||||||||
CAFL securities 1 (3) | N/A | % | 2/2025 | |||||||||||||||||||||||||||||||||||||||||
CAFL securities 2 (3) | N/A | % | 6/2026 | |||||||||||||||||||||||||||||||||||||||||
Long-Term Residential Investor Facilities | % | 7/2025-6/2026 | ||||||||||||||||||||||||||||||||||||||||||
Corporate Debt: | ||||||||||||||||||||||||||||||||||||||||||||
Promissory notes (2) (3) | % | N/A | ||||||||||||||||||||||||||||||||||||||||||
$ | % | 3/2026 | ||||||||||||||||||||||||||||||||||||||||||
N/A | % | 7/2024 | N/A | |||||||||||||||||||||||||||||||||||||||||
N/A | % | 10/2025 | N/A | |||||||||||||||||||||||||||||||||||||||||
N/A | % | 6/2027 | N/A | |||||||||||||||||||||||||||||||||||||||||
Trust preferred securities and subordinated notes | N/A | % | 1/2037, 7/2037 | N/A | ||||||||||||||||||||||||||||||||||||||||
N/A | % | 3/2029 | N/A | |||||||||||||||||||||||||||||||||||||||||
N/A | % | 9/2029 | N/A | |||||||||||||||||||||||||||||||||||||||||
Total Debt Obligations | $ | $ | $ |
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | Number of Facilities or Issuances | Principal Amount | Carrying Value | Facility Capacity | Weighted Average Interest Rate (1) | Final Stated Maturity | Carrying Value of Collateral | |||||||||||||||||||||||||||||||||||||
Short-Term Warehouse Facilities and Other | ||||||||||||||||||||||||||||||||||||||||||||
Residential consumer loan warehouse facilities | $ | $ | $ | % | 2/2024-12/2024 | $ | ||||||||||||||||||||||||||||||||||||||
Residential investor loan warehouse facilities | % | 5/2024-6/2024 | ||||||||||||||||||||||||||||||||||||||||||
Real estate securities repurchase facilities | % | 1/2024-3/2024 | ||||||||||||||||||||||||||||||||||||||||||
Residential MSR warehouse facility | % | 10/2024 | ||||||||||||||||||||||||||||||||||||||||||
HEI warehouse facility | % | 8/2024 | ||||||||||||||||||||||||||||||||||||||||||
Servicer advance financing | % | 12/2024 | ||||||||||||||||||||||||||||||||||||||||||
Recourse Subordinate Securities Financings: | ||||||||||||||||||||||||||||||||||||||||||||
Sequoia securities (3) | N/A | % | 9/2024 | |||||||||||||||||||||||||||||||||||||||||
CAFL securities 1 (3) | N/A | % | 2/2025 | |||||||||||||||||||||||||||||||||||||||||
CAFL securities 2 (3) | N/A | % | 6/2026 | |||||||||||||||||||||||||||||||||||||||||
Long-Term Residential Investor Facilities | % | 3/2025-12/2026 | ||||||||||||||||||||||||||||||||||||||||||
Corporate Debt: | ||||||||||||||||||||||||||||||||||||||||||||
Promissory notes (2) (3) | N/A | % | N/A | |||||||||||||||||||||||||||||||||||||||||
N/A | % | 7/2024 | N/A | |||||||||||||||||||||||||||||||||||||||||
N/A | % | 10/2025 | N/A | |||||||||||||||||||||||||||||||||||||||||
N/A | % | 6/2027 | N/A | |||||||||||||||||||||||||||||||||||||||||
Trust preferred securities and subordinated notes | N/A | % | 1/2037, 7/2037 | N/A | ||||||||||||||||||||||||||||||||||||||||
Total Debt Obligations | $ | $ | $ |
(In Thousands) | June 30, 2024 | |||||||
2024 (6 months) | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
2029 and thereafter | ||||||||
Total Lease Commitments | ||||||||
Less: Imputed interest | ( | |||||||
Operating Lease Liabilities | $ |
Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | |||||||||||||||||||||||||
(In Thousands) | Available-for-Sale Securities | Interest Rate Agreements Accounted for as Cash Flow Hedges | Available-for-Sale Securities | Interest Rate Agreements Accounted for as Cash Flow Hedges | ||||||||||||||||||||||
Balance at beginning of period | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
Other comprehensive income before reclassifications | ( | |||||||||||||||||||||||||
Amounts reclassified from other accumulated comprehensive income (loss) | ( | |||||||||||||||||||||||||
Net current-period other comprehensive income (loss) | ( | |||||||||||||||||||||||||
Balance at End of Period | $ | $ | ( | $ | $ | ( |
Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |||||||||||||||||||||||||
(In Thousands) | Available-for-Sale Securities | Interest Rate Agreements Accounted for as Cash Flow Hedges | Available-for-Sale Securities | Interest Rate Agreements Accounted for as Cash Flow Hedges | ||||||||||||||||||||||
Balance at beginning of period | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ||||||||||||||||||||||||||
Amounts reclassified from other accumulated comprehensive income (loss) | ( | |||||||||||||||||||||||||
Net current-period other comprehensive income (loss) | ||||||||||||||||||||||||||
Balance at End of Period | $ | $ | ( | $ | $ | ( |
Amount Reclassified From Accumulated Other Comprehensive Loss | ||||||||||||||||||||
Affected Line Item in the | Three Months Ended June 30, | |||||||||||||||||||
(In Thousands) | Income Statement | 2024 | 2023 | |||||||||||||||||
Net Realized Loss on AFS Securities | ||||||||||||||||||||
(Decrease) increase in allowance for credit losses on AFS securities | Investment fair value changes, net | $ | ( | $ | ||||||||||||||||
Loss (gain) on sale of AFS securities | Realized gains, net | |||||||||||||||||||
$ | ( | $ | ||||||||||||||||||
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges | ||||||||||||||||||||
Amortization of deferred loss | Interest expense | $ | $ | |||||||||||||||||
$ | $ |
Amount Reclassified From Accumulated Other Comprehensive Loss | ||||||||||||||||||||
Affected Line Item in the | Six Months Ended June 30, | |||||||||||||||||||
(In Thousands) | Income Statement | 2024 | 2023 | |||||||||||||||||
Net Realized (Gain) Loss on AFS Securities | ||||||||||||||||||||
(Decrease) increase in allowance for credit losses on AFS securities | Investment fair value changes, net | $ | ( | $ | ||||||||||||||||
Loss (gain) on sale of AFS securities | Realized gains, net | |||||||||||||||||||
$ | ( | $ | ||||||||||||||||||
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges | ||||||||||||||||||||
Amortization of deferred loss | Interest expense | $ | $ | |||||||||||||||||
$ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(In Thousands, except Share Data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Basic Earnings per Common Share: | ||||||||||||||||||||||||||
Net income available to common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Less: Dividends and undistributed earnings allocated to participating securities | ( | ( | ( | ( | ||||||||||||||||||||||
Net income available to common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Basic weighted average common shares outstanding | ||||||||||||||||||||||||||
Basic Earnings per Common Share | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted Earnings per Common Share: | ||||||||||||||||||||||||||
Net income available to common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Less: Dividends and undistributed earnings allocated to participating securities | ( | ( | ( | ( | ||||||||||||||||||||||
Net income available to common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted average common shares outstanding | ||||||||||||||||||||||||||
Net effect of dilutive equity awards | ||||||||||||||||||||||||||
Net effect of assumed convertible notes conversion to common shares | ||||||||||||||||||||||||||
Diluted weighted average common shares outstanding | ||||||||||||||||||||||||||
Diluted Earnings per Common Share | $ | $ | $ | $ |
Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||
(In Thousands) | Restricted Stock Units | Deferred Stock Units | Performance Stock Units | Employee Stock Purchase Plan | Total | |||||||||||||||||||||||||||
Unrecognized compensations cost at beginning of period | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Equity grants | ||||||||||||||||||||||||||||||||
Grant date fair value adjustment | ||||||||||||||||||||||||||||||||
Equity grant forfeitures | ( | ( | ( | |||||||||||||||||||||||||||||
Equity compensation expense | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Unrecognized Compensation Cost at End of Period | $ | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(In Thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
General and Administrative Expenses | ||||||||||||||||||||||||||
Fixed compensation expense (1) | $ | $ | $ | $ | ||||||||||||||||||||||
Annual variable compensation expense | ||||||||||||||||||||||||||
Long-term incentive award expense (2) | ||||||||||||||||||||||||||
Systems and consulting | ||||||||||||||||||||||||||
Office costs | ||||||||||||||||||||||||||
Accounting and legal | ||||||||||||||||||||||||||
Corporate costs | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total General and Administrative Expenses | ||||||||||||||||||||||||||
Portfolio Management Costs | ||||||||||||||||||||||||||
Loan Acquisition Costs | ||||||||||||||||||||||||||
Commissions | ||||||||||||||||||||||||||
Underwriting costs | ||||||||||||||||||||||||||
Transfer and holding costs | ||||||||||||||||||||||||||
Total Loan Acquisition Costs | ||||||||||||||||||||||||||
Other Expenses | ||||||||||||||||||||||||||
Amortization of purchase-related intangible assets | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total Other Expenses | ||||||||||||||||||||||||||
Total Operating Expenses | $ | $ | $ | $ |
June 30, 2024 | June 30, 2023 | |||||||||||||
Federal statutory rate | % | % | ||||||||||||
State taxes, net of Federal tax effect, as applicable | % | ( | % | |||||||||||
Differences in taxable income (loss) from GAAP income | % | ( | % | |||||||||||
Change in valuation allowance | % | % | ||||||||||||
REIT GAAP income or loss not subject to federal income tax | ( | % | ( | % | ||||||||||
Effective Tax Rate | % | ( | % |
Three Months Ended | Six Months Ended | |||||||||||||
(In Thousands, except per Share Data) | June 30, 2024 | June 30, 2024 | ||||||||||||
Net income per diluted common share | $ | 0.10 | $ | 0.31 | ||||||||||
Return on common stockholders' equity | 4.8 | % | 7.4 | % | ||||||||||
Dividends per share | $ | 0.16 | $ | 0.32 | ||||||||||
Book Value per share | $ | 8.73 | $ | 8.73 | ||||||||||
Total economic return (*) | 1.3 | % | 4.7 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||
(In Thousands, except per Share Data) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||||
Net Interest Income From: | |||||||||||||||||||||||||||||||||||||||||
Investment portfolio | $ | 29,930 | $ | 36,829 | $ | (6,899) | $ | 59,530 | $ | 77,076 | $ | (17,546) | |||||||||||||||||||||||||||||
Residential consumer mortgage banking | 11,175 | 734 | 10,441 | 17,221 | (622) | 17,843 | |||||||||||||||||||||||||||||||||||
Residential investor mortgage banking | 1,504 | 724 | 780 | 2,398 | 1,180 | 1,218 | |||||||||||||||||||||||||||||||||||
Corporate/other | (17,316) | (12,191) | (5,125) | (29,646) | (25,101) | (4,545) | |||||||||||||||||||||||||||||||||||
Net Interest Income | $ | 25,293 | $ | 26,096 | $ | (803) | $ | 49,503 | $ | 52,533 | $ | (3,030) | |||||||||||||||||||||||||||||
Non-Interest Income | |||||||||||||||||||||||||||||||||||||||||
Residential consumer mortgage banking activities, net | 6,245 | 7,061 | (816) | 14,072 | 10,426 | 3,646 | |||||||||||||||||||||||||||||||||||
Residential investor mortgage banking activities, net | 12,679 | 9,491 | 3,188 | 19,408 | 22,797 | (3,389) | |||||||||||||||||||||||||||||||||||
Investment fair value changes, net | 1,098 | (13,517) | 14,615 | 22,935 | (17,909) | 40,844 | |||||||||||||||||||||||||||||||||||
HEI income, net | 15,839 | 8,921 | 6,918 | 24,870 | 13,186 | 11,684 | |||||||||||||||||||||||||||||||||||
Other income, net | 6,293 | 4,158 | 2,135 | 10,799 | 8,714 | 2,085 | |||||||||||||||||||||||||||||||||||
Realized gains, net | — | 1,056 | (1,056) | 409 | 1,054 | (645) | |||||||||||||||||||||||||||||||||||
Total non-interest income, net | 42,154 | 17,170 | 24,984 | 92,493 | 38,268 | 54,225 | |||||||||||||||||||||||||||||||||||
General and administrative expenses | (33,284) | (30,805) | (2,479) | (67,853) | (66,360) | (1,493) | |||||||||||||||||||||||||||||||||||
Portfolio management costs | (4,864) | (3,100) | (1,764) | (8,461) | (6,610) | (1,851) | |||||||||||||||||||||||||||||||||||
Loan acquisition costs | (3,664) | (1,444) | (2,220) | (5,901) | (2,733) | (3,168) | |||||||||||||||||||||||||||||||||||
Other expenses | (5,177) | (4,975) | (202) | (8,538) | (8,659) | 121 | |||||||||||||||||||||||||||||||||||
Total Operating expenses | (46,989) | (40,324) | (6,665) | (90,753) | (84,362) | (6,391) | |||||||||||||||||||||||||||||||||||
Net Income Before Income Taxes | 20,458 | 2,942 | 17,516 | 51,243 | 6,439 | 44,804 | |||||||||||||||||||||||||||||||||||
(Provision for) benefit from income taxes | (4,924) | (69) | (4,855) | (5,447) | 1,054 | (6,501) | |||||||||||||||||||||||||||||||||||
Net Income | 15,534 | 2,873 | 12,661 | 45,796 | 7,493 | 38,303 | |||||||||||||||||||||||||||||||||||
Dividends on preferred stock | (1,757) | (1,758) | 1 | (3,507) | (3,177) | (330) | |||||||||||||||||||||||||||||||||||
Net Income Available to Common Stockholders | $ | 13,777 | $ | 1,115 | $ | 12,662 | $ | 42,289 | $ | 4,316 | $ | 37,973 |
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | Interest Income/ (Expense) | Average Balance (1) | Yield | Interest Income/ (Expense) | Average Balance (1) | Yield | ||||||||||||||||||||||||||||||||
Interest Income | ||||||||||||||||||||||||||||||||||||||
Residential consumer loans, held-for-sale | $ | 11,523 | $ | 668,380 | 6.9 | % | $ | 1,263 | $ | 75,054 | 6.7 | % | ||||||||||||||||||||||||||
Residential consumer loans - HFI at Sequoia (2) | 80,879 | 6,241,861 | 5.2 | % | 40,215 | 3,902,660 | 4.1 | % | ||||||||||||||||||||||||||||||
Residential consumer loans - HFI at Freddie Mac SLST (2) | 14,308 | 1,313,492 | 4.4 | % | 15,273 | 1,441,776 | 4.2 | % | ||||||||||||||||||||||||||||||
Residential investor loans - HFS | 6,881 | 333,558 | 8.3 | % | 3,440 | 252,916 | 5.4 | % | ||||||||||||||||||||||||||||||
Residential investor loans - HFI | 27,344 | 1,242,868 | 8.8 | % | 40,241 | 1,634,615 | 9.8 | % | ||||||||||||||||||||||||||||||
Residential investor term loans - HFI at CAFL (2) | 39,882 | 2,800,790 | 5.7 | % | 42,080 | 2,856,689 | 5.9 | % | ||||||||||||||||||||||||||||||
Residential investor bridge loans - HFI at CAFL (2) | 18,999 | 741,311 | 10.3 | % | 12,503 | 493,907 | 10.1 | % | ||||||||||||||||||||||||||||||
Multifamily loans - HFI at Freddie Mac K-Series (2) | 4,559 | 421,524 | 4.3 | % | 4,697 | 424,733 | 4.4 | % | ||||||||||||||||||||||||||||||
Real estate securities | 10,749 | 225,266 | 19.1 | % | 6,223 | 207,452 | 12.0 | % | ||||||||||||||||||||||||||||||
Other interest income | 10,293 | 858,349 | 4.8 | % | 13,046 | 1,105,138 | 4.7 | % | ||||||||||||||||||||||||||||||
Total interest income | 225,417 | 14,847,399 | 6.1 | % | 178,981 | 12,394,940 | 5.8 | % | ||||||||||||||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||||||||||||||||
ABS issued - Sequoia (2) | (74,373) | 6,001,059 | (5.0) | % | (36,653) | 3,669,624 | (4.0) | % | ||||||||||||||||||||||||||||||
ABS issued - Freddie Mac SLST (2) | (13,610) | 1,219,478 | (4.5) | % | (10,650) | 1,130,963 | (3.8) | % | ||||||||||||||||||||||||||||||
ABS issued - Freddie Mac K-Series (2) | (4,177) | 387,871 | (4.3) | % | (4,311) | 392,474 | (4.4) | % | ||||||||||||||||||||||||||||||
ABS issued - CAFL Term (2) | (32,370) | 2,458,312 | (5.3) | % | (33,202) | 2,545,639 | (5.2) | % | ||||||||||||||||||||||||||||||
ABS issued - CAFL Bridge (2) | (8,899) | 688,426 | (5.2) | % | (5,277) | 479,891 | (4.4) | % | ||||||||||||||||||||||||||||||
Debt Facilities | (52,433) | 2,477,562 | (8.5) | % | (47,795) | 2,424,720 | (7.9) | % | ||||||||||||||||||||||||||||||
Corporate Debt | (14,262) | 691,720 | (8.2) | % | (14,997) | 805,278 | (7.4) | % | ||||||||||||||||||||||||||||||
Total interest expense | (200,124) | 13,924,428 | (5.7) | % | (152,885) | 11,448,589 | (5.3) | % | ||||||||||||||||||||||||||||||
Net Interest Income | $ | 25,293 | $ | 26,096 |
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | Interest Income/ (Expense) | Average Balance (1) | Yield | Interest Income/ (Expense) | Average Balance (1) | Yield | ||||||||||||||||||||||||||||||||
Interest Income | ||||||||||||||||||||||||||||||||||||||
Residential consumer loans, held-for-sale | $ | 20,866 | $ | 621,532 | 6.7 | % | $ | 6,460 | $ | 222,123 | 5.8 | % | ||||||||||||||||||||||||||
Residential consumer loans - HFI at Sequoia (2) | 143,855 | 5,756,797 | 5.0 | % | 77,399 | 3,762,051 | 4.1 | % | ||||||||||||||||||||||||||||||
Residential consumer loans - HFI at Freddie Mac SLST (2) | 28,924 | 1,327,495 | 4.4 | % | 30,766 | 1,442,751 | 4.3 | % | ||||||||||||||||||||||||||||||
Residential investor loans - HFS | 10,456 | 276,428 | 7.6 | % | 7,845 | 262,035 | 6.0 | % | ||||||||||||||||||||||||||||||
Residential investor loans - HFI | 57,810 | 1,271,955 | 9.1 | % | 78,695 | 1,592,536 | 9.9 | % | ||||||||||||||||||||||||||||||
Residential investor term loans - HFI at CAFL (2) | 80,635 | 2,852,959 | 5.7 | % | 83,889 | 2,879,585 | 5.8 | % | ||||||||||||||||||||||||||||||
Residential investor bridge loans - HFI at CAFL (2) | 39,240 | 756,303 | 10.4 | % | 25,131 | 500,691 | 10.0 | % | ||||||||||||||||||||||||||||||
Multifamily loans - HFI at Freddie Mac K-Series (2) | 9,140 | 422,786 | 4.3 | % | 9,315 | 423,933 | 4.4 | % | ||||||||||||||||||||||||||||||
Real estate securities (3) | 17,029 | 189,654 | 18.0 | % | 12,651 | 222,489 | 11.4 | % | ||||||||||||||||||||||||||||||
Other interest income | 22,202 | 879,724 | 5.0 | % | 25,346 | 1,094,723 | 4.6 | % | ||||||||||||||||||||||||||||||
Total interest income | 430,157 | 14,355,633 | 6.0 | % | 357,497 | 12,402,917 | 5.8 | % | ||||||||||||||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||||||||||||||||
ABS issued - Sequoia (2) | (133,195) | 5,529,610 | (4.8) | % | (69,212) | 3,531,299 | (3.9) | % | ||||||||||||||||||||||||||||||
ABS issued - Freddie Mac SLST (2) | (27,591) | 1,234,882 | (4.5) | % | (21,868) | 1,140,899 | (3.8) | % | ||||||||||||||||||||||||||||||
ABS issued - Freddie Mac K-Series (2) | (8,376) | 389,245 | (4.3) | % | (8,552) | 391,854 | (4.4) | % | ||||||||||||||||||||||||||||||
ABS issued - CAFL Term (2) | (65,825) | 2,509,053 | (5.2) | % | (67,362) | 2,560,664 | (5.3) | % | ||||||||||||||||||||||||||||||
ABS issued - CAFL Bridge (2) | (18,701) | 701,361 | (5.3) | % | (10,564) | 479,215 | (4.4) | % | ||||||||||||||||||||||||||||||
Debt Facilities | (98,667) | 2,355,133 | (8.4) | % | (97,205) | 2,500,073 | (7.8) | % | ||||||||||||||||||||||||||||||
Corporate Debt | (28,299) | 689,624 | (8.2) | % | (30,201) | 821,244 | (7.4) | % | ||||||||||||||||||||||||||||||
Total interest expense | (380,654) | 13,408,908 | (5.7) | % | (304,964) | 11,425,248 | (5.3) | % | ||||||||||||||||||||||||||||||
Net Interest Income | $ | 49,503 | $ | 52,533 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||
(In Thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||||
Segment Contribution from: | |||||||||||||||||||||||||||||||||||||||||
Residential Consumer Mortgage Banking | $ | 9,923 | $ | 3,201 | $ | 6,722 | $ | 16,942 | $ | 1,938 | $ | 15,004 | |||||||||||||||||||||||||||||
Residential Investor Mortgage Banking | 595 | (3,343) | 3,938 | (4,914) | (4,370) | (544) | |||||||||||||||||||||||||||||||||||
Investment Portfolio | 41,830 | 32,283 | 9,547 | 99,322 | 67,765 | 31,557 | |||||||||||||||||||||||||||||||||||
Corporate/Other | (36,814) | (29,268) | (7,546) | (65,554) | (57,840) | (7,714) | |||||||||||||||||||||||||||||||||||
Net Income | $ | 15,534 | $ | 2,873 | $ | 12,661 | $ | 45,796 | $ | 7,493 | $ | 38,303 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||
(In Thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||||
Mortgage banking income | $ | 17,420 | $ | 7,795 | $ | 9,625 | 31,293 | $ | 10,880 | $ | 20,413 | ||||||||||||||||||||||||||||||
Operating expenses | (5,937) | (3,887) | (2,050) | (11,297) | (8,868) | (2,429) | |||||||||||||||||||||||||||||||||||
(Provision for) benefit from income taxes | (1,560) | (707) | (853) | (3,054) | (74) | (2,980) | |||||||||||||||||||||||||||||||||||
Segment Contribution | $ | 9,923 | $ | 3,201 | $ | 6,722 | $ | 16,942 | $ | 1,938 | $ | 15,004 | |||||||||||||||||||||||||||||
Loan purchase commitments entered into (loan locks, adjusted for expected fallout) | $ | 2,433,998 | $ | 436,891 | $ | 1,997,107 | $ | 3,727,620 | $ | 505,729 | $ | 3,221,891 |
Three Months Ended | Six Months Ended | ||||||||||
(In Thousands) | June 30, 2024 | June 30, 2024 | |||||||||
Balance at beginning of period | $ | 511,706 | $ | 911,192 | |||||||
Acquisitions | 1,901,943 | 2,907,602 | |||||||||
Sales | (5,678) | (205,016) | |||||||||
Transfers between segments (1) | (1,451,565) | (2,645,589) | |||||||||
Principal repayments | (5,631) | (24,044) | |||||||||
Changes in fair value, net | 11,773 | 18,403 | |||||||||
Balance at End of Period | $ | 962,548 | $ | 962,548 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||
(In Thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||||
Mortgage banking income | $ | 15,357 | $ | 11,291 | $ | 4,066 | 23,606 | $ | 27,461 | $ | (3,855) | ||||||||||||||||||||||||||||||
Operating expenses | (14,313) | (16,040) | 1,727 | (30,207) | (33,940) | 3,733 | |||||||||||||||||||||||||||||||||||
(Provision for) benefit from income taxes | (449) | 1,406 | (1,855) | 1,687 | 2,109 | (422) | |||||||||||||||||||||||||||||||||||
Segment Contribution | $ | 595 | $ | (3,343) | $ | 3,938 | $ | (4,914) | $ | (4,370) | $ | (544) |
Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||
(In Thousands) | Term Loans | Bridge Loans (1) | Total | Term Loans | Bridge Loans (1) | Total | ||||||||||||||||||||||||||||||||
Fair value at beginning of period | $ | 253,774 | $ | 26,777 | $ | 280,551 | $ | 144,360 | $ | 35,891 | $ | 180,251 | ||||||||||||||||||||||||||
Fundings (1) (2) | 218,186 | 241,231 | 459,417 | 335,276 | 450,390 | 785,666 | ||||||||||||||||||||||||||||||||
Sales (2) | (259,077) | (140,735) | (399,812) | (265,233) | (178,423) | (443,656) | ||||||||||||||||||||||||||||||||
Transfers between segments (3) | (609) | (83,246) | (83,855) | (552) | (262,738) | (263,290) | ||||||||||||||||||||||||||||||||
Principal repayments | (737) | (3,413) | (4,150) | (961) | (5,450) | (6,411) | ||||||||||||||||||||||||||||||||
Changes in fair value, net | 6,224 | 1,108 | 7,332 | 4,871 | 2,052 | 6,923 | ||||||||||||||||||||||||||||||||
Fair Value at End of Period | $ | 217,761 | $ | 41,722 | $ | 259,483 | $ | 217,761 | $ | 41,722 | $ | 259,483 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||
(In Thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||||
Net interest income | $ | 29,930 | $ | 36,829 | $ | (6,899) | $ | 59,530 | $ | 77,076 | $ | (17,546) | |||||||||||||||||||||||||||||
Investment fair value changes, net | 2,548 | (10,768) | 13,316 | 23,735 | (16,141) | 39,876 | |||||||||||||||||||||||||||||||||||
HEI income, net | 15,839 | 8,921 | 6,918 | 24,870 | 13,186 | 11,684 | |||||||||||||||||||||||||||||||||||
Other income, net | 5,120 | 4,013 | 1,107 | 9,945 | 6,181 | 3,764 | |||||||||||||||||||||||||||||||||||
Realized gains, net | — | 949 | (949) | 314 | 832 | (518) | |||||||||||||||||||||||||||||||||||
Operating expenses | (8,693) | (6,196) | (2,497) | (15,012) | (11,691) | (3,321) | |||||||||||||||||||||||||||||||||||
(Provision for) income taxes | (2,914) | (1,465) | (1,449) | (4,060) | (1,678) | (2,382) | |||||||||||||||||||||||||||||||||||
Segment Contribution | $ | 41,830 | $ | 32,283 | $ | 9,547 | $ | 99,322 | $ | 67,765 | $ | 31,557 |
(In Thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||
Organic Residential Consumer Investments | ||||||||||||||
Residential consumer securities at Redwood | 127,962 | 110,056 | ||||||||||||
Residential consumer securities at consolidated Sequoia entities (1) | 239,238 | 204,830 | ||||||||||||
Other investments (2) | 52,455 | 47,239 | ||||||||||||
Organic Residential Investor Investments | ||||||||||||||
Residential investor bridge loans | 1,882,700 | 2,068,323 | ||||||||||||
Residential investor securities at consolidated CAFL Term entities (3) | 337,161 | 323,340 | ||||||||||||
Third-Party Investments | ||||||||||||||
Residential securities at Redwood | 46,424 | 5,645 | ||||||||||||
Residential securities at consolidated Freddie Mac SLST entities (4) | 257,742 | 274,175 | ||||||||||||
Multifamily securities at Redwood | 14,526 | 7,101 | ||||||||||||
Multifamily securities at consolidated Freddie Mac K-Series entities (5) | 34,003 | 33,308 | ||||||||||||
Servicing investments (6) | 99,821 | 85,704 | ||||||||||||
HEI (7) | 293,945 | 278,967 | ||||||||||||
Other investments | 4,441 | 5,456 | ||||||||||||
Total Segment Investments | $ | 3,390,418 | $ | 3,444,144 |
Three Months Ended June 30, 2024 | Residential Consumer Organic | Residential Investor Organic | Third-Party Investments | Total | ||||||||||||||||||||||||||||||||||||||||
Sequoia Securities on Balance Sheet | Consolidated Sequoia Securities | Consolidated CAFL Securities | Consolidated SLST Securities | Consolidated Multifamily Securities | Other Third-Party Securities | |||||||||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Beginning fair value | $ | 123,356 | $ | 217,299 | $ | 333,461 | $ | 271,075 | $ | 33,551 | $ | 88,951 | $ | 1,067,693 | ||||||||||||||||||||||||||||||
Acquisitions | 4,397 | 43,285 | 104 | — | — | 45,081 | 92,867 | |||||||||||||||||||||||||||||||||||||
Sales | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Gains on sales and calls, net | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Effect of principal payments (1) | (64) | (669) | (3,752) | (7,893) | — | (207) | (12,585) | |||||||||||||||||||||||||||||||||||||
Change in fair value, net | 943 | 4,221 | 7,348 | (5,440) | 452 | 1,944 | 9,468 | |||||||||||||||||||||||||||||||||||||
Ending Fair Value (2) | $ | 128,632 | $ | 264,136 | $ | 337,161 | $ | 257,742 | $ | 34,003 | $ | 135,769 | $ | 1,157,443 |
Six Months Ended June 30, 2024 | Residential Organic | Business Purpose Organic | Third-Party Investments | Total | ||||||||||||||||||||||||||||||||||||||||
Sequoia Securities on Balance Sheet | Consolidated Sequoia Securities | Consolidated CAFL Securities | Consolidated SLST Securities | Consolidated Multifamily Securities | Other Third-Party Securities | |||||||||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Beginning fair value | $ | 110,632 | $ | 210,429 | $ | 323,340 | $ | 274,174 | $ | 33,308 | $ | 17,165 | $ | 969,048 | ||||||||||||||||||||||||||||||
Acquisitions | 4,397 | 65,444 | 104 | — | — | 106,663 | 176,608 | |||||||||||||||||||||||||||||||||||||
Sales | — | (18,634) | — | — | — | — | (18,634) | |||||||||||||||||||||||||||||||||||||
Gains on sales and calls, net | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Effect of principal payments (1) | (125) | (2,446) | (3,752) | (14,460) | — | (362) | (21,145) | |||||||||||||||||||||||||||||||||||||
Change in fair value, net | 13,728 | 9,343 | 17,469 | (1,972) | 695 | 12,303 | 51,566 | |||||||||||||||||||||||||||||||||||||
Ending Fair Value (2) | $ | 128,632 | $ | 264,136 | $ | 337,161 | $ | 257,742 | $ | 34,003 | $ | 135,769 | $ | 1,157,443 |
June 30, 2024 | Weighted Average Values (1) | |||||||||||||||||||||||||||||||||||||||||||
Market Value - IO Securities | Market Value - Non-IO Securities | Principal Balance - Non-IO Securities | Gross Weighted Average Coupon | 90 Day+ Delinquency | 3-Month Prepayment Rate | Investment Thickness(2) | ||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Sequoia securities on balance sheet | $ | 40,467 | $ | 88,165 | $ | 139,544 | 3.6 | % | 0.2 | % | 5 | % | 4 | % | ||||||||||||||||||||||||||||||
Consolidated Sequoia securities | 87,777 | 176,359 | 234,073 | 4.9 | % | 0.2 | % | 10 | % | 3 | % | |||||||||||||||||||||||||||||||||
Total Sequoia Securities | 128,244 | 264,524 | 373,617 | 4.5 | % | 0.2 | % | 8 | % | 3 | % | |||||||||||||||||||||||||||||||||
Consolidated Freddie Mac SLST securities | 19,131 | 238,611 | 438,151 | 4.5 | % | 7.3 | % | 4 | % | 28 | % | |||||||||||||||||||||||||||||||||
Consolidated Freddie Mac K-Series securities | — | 34,003 | 36,468 | 4.3 | % | — | % | — | % | 8 | % | |||||||||||||||||||||||||||||||||
Multifamily securities on balance sheet | 8 | 14,518 | 14,598 | 4.8 | % | — | % | — | % | — | % | |||||||||||||||||||||||||||||||||
Total Multifamily Securities | 8 | 48,521 | 51,066 | 4.8 | % | — | % | — | % | — | % | |||||||||||||||||||||||||||||||||
Consolidated CAFL securities | 17,456 | 319,705 | 430,882 | 5.3 | % | 4.8 | % | 9 | % | 15 | % | |||||||||||||||||||||||||||||||||
Other third-party securities | 74,827 | 46,416 | 62,502 | 6.3 | % | 2.9 | % | 12 | % | N/A | ||||||||||||||||||||||||||||||||||
Total Securities (3) | $ | 239,666 | $ | 917,777 | $ | 1,356,218 |
Three Months Ended | Six Months Ended | |||||||||||||
(In Thousands) | June 30, 2024 | June 30, 2024 | ||||||||||||
Fair value at beginning of period | $ | 2,048,391 | $ | 2,068,323 | ||||||||||
Acquisitions | — | 15,677 | ||||||||||||
Sales | (21,500) | (52,163) | ||||||||||||
Transfers between portfolios (1) | 82,077 | 261,569 | ||||||||||||
Transfers to REO | (3,147) | (3,950) | ||||||||||||
Principal repayments | (209,493) | (391,023) | ||||||||||||
Changes in fair value, net | (13,628) | (15,733) | ||||||||||||
Fair Value at End of Period | $ | 1,882,700 | $ | 1,882,700 |
(In Thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||
Renovate / Build for rent ("BFR")(1) | $ | 915,174 | $ | 1,045,191 | ||||||||||
Single Asset Bridge ("SAB")(2) | 119,989 | 128,434 | ||||||||||||
Multifamily(3) | 827,000 | 866,278 | ||||||||||||
Other | 20,537 | 28,420 | ||||||||||||
Fair Value at End of Period | $ | 1,882,700 | $ | 2,068,323 |
Home Equity Investments(1) | Three Months Ended | Six Months Ended | |||||||||||||||
(In Thousands) | June 30, 2024 | June 30, 2024 | |||||||||||||||
Balance at beginning of period | $ | 560,745 | $ | 550,436 | |||||||||||||
New/additional investments | 299 | 606 | |||||||||||||||
Settlements | (15,617) | (27,182) | |||||||||||||||
Changes in fair value, net | 28,692 | 50,259 | |||||||||||||||
Balance at End of Period | $ | 574,119 | $ | 574,119 |
Three Months Ended June 30, 2024 | Servicing Investments(2) | Strategic Investments | MSRs and Excess Servicing | Other | Total | |||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 216,033 | $ | 57,608 | $ | 63,539 | $ | 165 | $ | 337,345 | ||||||||||||||||||||||
New/additional investments | — | 2,873 | 9 | — | 2,882 | |||||||||||||||||||||||||||
Sales/distribution/repayments | — | — | — | (59) | (59) | |||||||||||||||||||||||||||
Servicer advances (repayments), net | (281) | — | — | — | (281) | |||||||||||||||||||||||||||
Changes in fair value, net | 11,611 | (1,451) | (141) | — | 10,019 | |||||||||||||||||||||||||||
Balance at End of Period | $ | 227,363 | $ | 59,030 | $ | 63,407 | $ | 106 | $ | 349,906 |
Six Months Ended June 30, 2024 | Servicing Investments(2) | Strategic Investments | MSRs and Excess Servicing | Other | Total | |||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 225,345 | $ | 56,107 | $ | 62,244 | $ | 234 | $ | 343,930 | ||||||||||||||||||||||
New/additional investments | — | 4,669 | 85 | — | 4,754 | |||||||||||||||||||||||||||
Sales/distribution/repayments | — | — | — | (128) | (128) | |||||||||||||||||||||||||||
Servicer advances (repayments), net | (8,959) | — | — | — | (8,959) | |||||||||||||||||||||||||||
Changes in fair value, net | 10,977 | (1,746) | 1,078 | — | 10,309 | |||||||||||||||||||||||||||
Balance at End of Period | $ | 227,363 | $ | 59,030 | $ | 63,407 | $ | 106 | $ | 349,906 |
Total Number of Shares Purchased or Acquired | Average Price per Share Paid | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or approximate dollar value) of Shares that May Yet be Purchased under the Plans or Programs | |||||||||||||||||||||||
(In Thousands, except per Share Data) | ||||||||||||||||||||||||||
April 1, 2024 - April 30, 2024 | — | $ | — | — | $ | — | ||||||||||||||||||||
May 1, 2024 - May 31, 2024 | — | $ | — | — | $ | — | ||||||||||||||||||||
June 1, 2024 - June 30, 2024 | — | $ | — | — | $ | — | ||||||||||||||||||||
Total | — | $ | — | — | $ | 101,265 |
Exhibit Number | Exhibit | |||||||
3.1 | ||||||||
3.1.1 | ||||||||
3.1.2 | ||||||||
3.1.3 | ||||||||
3.1.4 | ||||||||
3.1.5 | ||||||||
3.1.6 | ||||||||
3.1.7 | ||||||||
3.1.8 | ||||||||
3.1.9 | ||||||||
3.1.10 | ||||||||
3.1.11 | ||||||||
3.1.12 | ||||||||
3.1.13 | ||||||||
3.2 | ||||||||
4.1 | ||||||||
4.2 | ||||||||
10.1* | ||||||||
10.2* | ||||||||
10.3* | ||||||||
10.4* | ||||||||
10.5* | ||||||||
10.6* | ||||||||
10.7* | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 |
Exhibit Number | Exhibit | |||||||
101 | Pursuant to Rule 405 of Regulation S-T, the following financial information from the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2024, is filed in inline XBRL-formatted interactive data files: (i) Consolidated Balance Sheets at June 30, 2024 and December 31, 2023; (ii) Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023; (iii) Statements of Consolidated Comprehensive Income for the three and six months ended June 30, 2024 and 2023; (iv) Consolidated Statements of Changes in Stockholders' Equity for the three and six months ended June 30, 2024 and 2023; (v) Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023; and (vi) Notes to Consolidated Financial Statements. | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
REDWOOD TRUST, INC. | |||||||||||
Date: | August 7, 2024 | By: | /s/ Christopher J. Abate | ||||||||
Christopher J. Abate | |||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: | August 7, 2024 | By: | /s/ Brooke E. Carillo | ||||||||
Brooke E. Carillo | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial and Accounting Officer) | |||||||||||
REDWOOD TRUST, INC. | ||||||||||||||
By: | /s/ Andrew P. Stone | |||||||||||||
Andrew P. Stone | ||||||||||||||
Executive Vice President & Chief Legal Officer | ||||||||||||||
EXECUTIVE | ||||||||||||||
/s/ Christopher J. Abate | ||||||||||||||
Christopher J. Abate | ||||||||||||||
EXECUTIVE | ||||||||
Name: | ||||||||
Christopher J. Abate | ||||||||
Date: | ||||||||
COMPANY | ||||||||
Name: | ||||||||
Date: |
EXECUTIVE | ||||||||
Name: | ||||||||
Christopher J. Abate | ||||||||
Date: | ||||||||
COMPANY | ||||||||
Name: | ||||||||
Date: |
REDWOOD TRUST, INC. | ||||||||||||||
By: | /s/ Christopher J. Abate | |||||||||||||
Christopher J. Abate | ||||||||||||||
Chief Executive Officer | ||||||||||||||
EXECUTIVE | ||||||||||||||
/s/ Dashiell I. Robinson | ||||||||||||||
Dashiell I. Robinson | ||||||||||||||
EXECUTIVE | ||||||||
Name: | ||||||||
Dashiell I. Robinson | ||||||||
Date: | ||||||||
COMPANY | ||||||||
Name: | ||||||||
Date: |
EXECUTIVE | ||||||||
Name: | ||||||||
Dashiell I. Robinson | ||||||||
Date: | ||||||||
COMPANY | ||||||||
Name: | ||||||||
Date: |
REDWOOD TRUST, INC. | ||||||||||||||
By: | /s/ Christopher J. Abate | |||||||||||||
Christopher J. Abate | ||||||||||||||
Chief Executive Officer | ||||||||||||||
EXECUTIVE | ||||||||||||||
/s/ Brooke E. Carillo | ||||||||||||||
Brooke E. Carillo | ||||||||||||||
EXECUTIVE | ||||||||
Name: | ||||||||
Brooke E. Carillo | ||||||||
Date: | ||||||||
COMPANY | ||||||||
Name: | ||||||||
Date: |
EXECUTIVE | ||||||||
Name: | ||||||||
Brooke E. Carillo | ||||||||
Date: | ||||||||
COMPANY | ||||||||
Name: | ||||||||
Date: |
REDWOOD TRUST, INC. | ||||||||||||||
By: | /s/ Christopher J. Abate | |||||||||||||
Christopher J. Abate | ||||||||||||||
Chief Executive Officer | ||||||||||||||
EXECUTIVE | ||||||||||||||
/s/ Fred J. Matera | ||||||||||||||
Fred J. Matera | ||||||||||||||
EXECUTIVE | ||||||||
Name: | ||||||||
Fred J. Matera | ||||||||
Date: | ||||||||
COMPANY | ||||||||
Name: | ||||||||
Date: |
EXECUTIVE | ||||||||
Name: | ||||||||
Fred J. Matera | ||||||||
Date: | ||||||||
COMPANY | ||||||||
Name: | ||||||||
Date: |
REDWOOD TRUST, INC. | ||||||||||||||
By: | /s/ Christopher J. Abate | |||||||||||||
Christopher J. Abate | ||||||||||||||
Chief Executive Officer | ||||||||||||||
EXECUTIVE | ||||||||||||||
/s/ Sasha G. Macomber | ||||||||||||||
Sasha G. Macomber | ||||||||||||||
EXECUTIVE | ||||||||
Name: | ||||||||
Sasha G. Macomber | ||||||||
Date: | ||||||||
COMPANY | ||||||||
Name: | ||||||||
Date: |
EXECUTIVE | ||||||||
Name: | ||||||||
Sasha G. Macomber | ||||||||
Date: | ||||||||
COMPANY | ||||||||
Name: | ||||||||
Date: |
REDWOOD TRUST, INC. | ||||||||||||||
By: | /s/ Christopher J. Abate | |||||||||||||
Christopher J. Abate | ||||||||||||||
Chief Executive Officer | ||||||||||||||
EXECUTIVE | ||||||||||||||
/s/ Andrew P. Stone | ||||||||||||||
Andrew P. Stone | ||||||||||||||
EXECUTIVE | ||||||||
Name: | ||||||||
Andrew P. Stone | ||||||||
Date: | ||||||||
COMPANY | ||||||||
Name: | ||||||||
Date: |
EXECUTIVE | ||||||||
Name: | ||||||||
Andrew P. Stone | ||||||||
Date: | ||||||||
COMPANY | ||||||||
Name: | ||||||||
Date: |
Date: August 7, 2024 | /s/ Christopher J. Abate | |||||||
Christopher J. Abate | ||||||||
Chief Executive Officer |
Date: August 7, 2024 | /s/ Brooke E. Carillo | |||||||
Brooke E. Carillo | ||||||||
Chief Financial Officer |
Date: August 7, 2024 | /s/ Christopher J. Abate | |||||||
Christopher J. Abate | ||||||||
Chief Executive Officer |
Date: August 7, 2024 | /s/ Brooke E. Carillo | |||||||
Brooke E. Carillo | ||||||||
Chief Financial Officer |
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
||
---|---|---|---|---|
ASSETS | ||||
Real estate securities, at fair value | [1] | $ 264,401 | $ 127,797 | |
Home equity investments, at fair value | [1] | 574,119 | 550,436 | |
Other investments | [1] | 349,906 | 343,930 | |
Cash and cash equivalents | [1] | 275,581 | 293,104 | |
Restricted cash | [1] | 63,799 | 75,684 | |
Derivative assets | [1] | 48,517 | 14,212 | |
Other assets | [1] | 403,181 | 402,944 | |
Total Assets | [1] | 16,491,104 | 14,504,327 | |
Liabilities | ||||
Asset-backed securities issued (includes $10,975,688 and $9,151,263 at fair value), net | [1] | 11,555,550 | 9,811,880 | |
Debt obligations, net | [1] | 3,414,626 | 3,239,123 | |
Derivative liabilities | [1] | 5,954 | 33,828 | |
Accrued expenses and other liabilities | [1] | 294,236 | 216,803 | |
Total liabilities | [1] | 15,270,366 | 13,301,634 | |
Commitments and Contingencies (see Note 18) | [1] | |||
Equity | ||||
Preferred stock, par value $0.01 per share, 2,990,000 shares authorized; 2,800,000 issued and outstanding | [1] | 66,948 | 66,948 | |
Common stock, par value $0.01 per share, 392,010,000 shares authorized; 132,215,757 and 131,485,661 issued and outstanding | [1] | 1,322 | 1,315 | |
Additional paid-in capital | [1] | 2,497,218 | 2,487,848 | |
Accumulated other comprehensive loss | [1] | (47,332) | (57,957) | |
Cumulative earnings | [1] | 1,186,701 | 1,144,412 | |
Cumulative distributions to stockholders | [1] | (2,484,119) | (2,439,873) | |
Total equity | [1] | 1,220,738 | 1,202,693 | |
Total Liabilities and Equity | [1] | 16,491,104 | 14,504,327 | |
Residential consumer loans, held-for-sale, at fair value | ||||
ASSETS | ||||
Fair value of loans | [1] | 962,548 | 911,192 | |
Residential consumer loans, held-for-investment, at fair value | ||||
ASSETS | ||||
Fair value of loans | [1] | 8,247,608 | 6,139,445 | |
Residential investor loans, held-for-sale, at fair value | ||||
ASSETS | ||||
Fair value of loans | [1] | 259,483 | 180,250 | |
Residential investor loans, held-for-investment, at fair value | ||||
ASSETS | ||||
Fair value of loans | [1] | 4,620,167 | 5,040,048 | |
Consolidated Agency multifamily loans, at fair value | ||||
ASSETS | ||||
Fair value of loans | [1] | $ 421,794 | $ 425,285 | |
|
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
||
---|---|---|---|---|
ABS issued | $ 10,975,688 | $ 9,151,263 | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, authorized (in shares) | 2,990,000 | 2,990,000 | ||
Preferred stock, issued (in shares) | 2,800,000 | 2,800,000 | ||
Preferred stock, outstanding (in shares) | 2,800,000 | 2,800,000 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, authorized (in shares) | 392,010,000 | 392,010,000 | ||
Common stock, issued (in shares) | 132,215,757 | 131,485,661 | ||
Common stock, outstanding (in shares) | 132,215,757 | 131,485,661 | ||
Assets | [1] | $ 16,491,104 | $ 14,504,327 | |
Total Liabilities | [1] | 15,270,366 | 13,301,634 | |
VIEs | ||||
Assets | 12,844,193 | 10,988,885 | ||
Total Liabilities | $ 11,866,962 | $ 10,096,308 | ||
|
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Interest Income | ||||
Residential consumer loans | $ 106,710 | $ 56,751 | $ 193,645 | $ 114,625 |
Residential investor loans | 93,106 | 98,264 | 188,141 | 195,560 |
Consolidated Agency multifamily loans | 4,559 | 4,697 | 9,140 | 9,315 |
Real estate securities | 10,749 | 6,223 | 17,029 | 12,651 |
Other interest income | 10,293 | 13,046 | 22,202 | 25,346 |
Total interest income | 225,417 | 178,981 | 430,157 | 357,497 |
Interest Expense | ||||
Asset-backed securities issued | (133,429) | (90,093) | (253,688) | (177,558) |
Debt obligations | (66,695) | (62,792) | (126,966) | (127,406) |
Total interest expense | (200,124) | (152,885) | (380,654) | (304,964) |
Net Interest Income | 25,293 | 26,096 | 49,503 | 52,533 |
Non-Interest Income | ||||
Mortgage banking activities, net | 18,924 | 16,552 | 33,480 | 33,223 |
Investment fair value changes, net | 1,098 | (13,517) | 22,935 | (17,909) |
HEI income, net | 15,839 | 8,921 | 24,870 | 13,186 |
Other income, net | 6,293 | 4,158 | 10,799 | 8,714 |
Realized gains, net | 0 | 1,056 | 409 | 1,054 |
Total non-interest income, net | 42,154 | 17,170 | 92,493 | 38,268 |
General and administrative expenses | (33,284) | (30,805) | (67,853) | (66,360) |
Portfolio management costs | (4,864) | (3,100) | (8,461) | (6,610) |
Loan acquisition costs | (3,664) | (1,444) | (5,901) | (2,733) |
Other expenses | (5,177) | (4,975) | (8,538) | (8,659) |
Net Income Before (Provision for) Benefit From Income Taxes | 20,458 | 2,942 | 51,243 | 6,439 |
(Provision for) benefit from income taxes | (4,924) | (69) | (5,447) | 1,054 |
Net Income | 15,534 | 2,873 | 45,796 | 7,493 |
Dividends on preferred stock | (1,757) | (1,758) | (3,507) | (3,177) |
Net Income Available To Common Stockholders | $ 13,777 | $ 1,115 | $ 42,289 | $ 4,316 |
Basic earnings per common share (in dollars per share) | $ 0.10 | $ 0 | $ 0.31 | $ 0.02 |
Diluted earnings per common share (in dollars per share) | $ 0.10 | $ 0 | $ 0.31 | $ 0.02 |
Basic weighted average common shares outstanding (in shares) | 132,115,854 | 114,051,017 | 131,843,100 | 113,830,347 |
Diluted weighted average common shares outstanding (in shares) | 132,123,702 | 114,445,262 | 131,847,024 | 114,255,292 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 15,534 | $ 2,873 | $ 45,796 | $ 7,493 |
Other comprehensive income: | ||||
Net unrealized gain (loss) on available-for-sale securities | 1,054 | (688) | 9,710 | 4,319 |
Reclassification of unrealized (gain) loss on available-for-sale securities to net income | (514) | 604 | (1,143) | 411 |
Reclassification of unrealized loss on interest rate agreements to net income | 1,029 | 1,029 | 2,058 | 2,047 |
Total other comprehensive income | 1,569 | 945 | 10,625 | 6,777 |
Comprehensive Income | 17,103 | 3,818 | 56,421 | 14,270 |
Dividends on preferred stock | (1,757) | (1,758) | (3,507) | (3,177) |
Comprehensive income available to Common Stockholders | $ 15,346 | $ 2,060 | $ 52,914 | $ 11,093 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Preferred dividends declared (in dollars per share) | $ 0.6250 | $ 0.625 | $ 1.2500 | $ 1.22917 |
Common dividends declared (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.32 | $ 0.39 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
||||
Cash Flows From Operating Activities: | |||||
Net income | $ 45,796 | $ 7,493 | |||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||
Amortization of premiums, discounts, and debt issuance costs, net | 7,823 | 10,190 | |||
Depreciation and amortization of non-financial assets | 6,315 | 7,333 | |||
Originations of held-for-sale loans | (653,699) | (360,273) | |||
Purchases of held-for-sale loans | (2,901,465) | (242,235) | |||
Proceeds from sales of held-for-sale loans | 619,573 | 582,346 | |||
Principal payments on held-for-sale loans | 30,454 | 38,820 | |||
Net settlements of derivatives | (66,475) | (17,235) | |||
Non-cash equity award compensation expense and other | 12,250 | 11,542 | |||
Market valuation adjustments | (73,859) | (17,594) | |||
Realized (gains) losses, net | (408) | (1,054) | |||
Net change in: | |||||
Other assets | 8,592 | 3,358 | |||
Accrued expenses and other liabilities | 44,932 | 878 | |||
Net cash (used in) provided by operating activities | (2,920,171) | 23,569 | |||
Cash Flows From Investing Activities: | |||||
Originations and purchases of loan investments | (120,341) | (455,665) | |||
Proceeds from sales of loans | 52,163 | 0 | |||
Principal payments on loan investments | 1,049,264 | 725,687 | |||
Purchases of real estate securities | (111,060) | (9,855) | |||
Proceeds from sales of real estate securities | 0 | 98,338 | |||
Principal payments on real estate securities | 669 | 637 | |||
Repayments from servicer advance investments, net | 8,959 | 37,268 | |||
Purchases of HEI | (606) | (25,513) | |||
Repayments on HEI | 27,272 | 17,031 | |||
Other investing activities, net | (4,541) | (1,677) | |||
Net cash provided by investing activities | 901,779 | 386,251 | |||
Cash Flows From Financing Activities: | |||||
Proceeds from borrowings on debt obligations | 3,910,021 | 1,345,019 | |||
Repayments on debt obligations | (3,723,966) | (1,838,761) | |||
Proceeds from issuance of asset-backed securities | 2,600,015 | 635,081 | |||
Repayments on asset-backed securities issued | (732,726) | (446,451) | |||
Debt issuance costs paid | (13,734) | (1,329) | |||
Taxes paid on equity award distributions | (3,106) | (3,017) | |||
Net proceeds from issuance of common stock | 233 | 312 | |||
Net proceeds from issuance of preferred stock | 0 | 66,923 | |||
Dividends paid on common stock | (44,246) | (46,700) | |||
Dividends paid on preferred stock | (3,507) | (1,699) | |||
Other financing activities, net | 0 | (1,720) | |||
Net cash provided by (used in) financing activities | 1,988,984 | (292,342) | |||
Net (decrease) increase in cash, cash equivalents and restricted cash | (29,408) | 117,478 | |||
Cash, cash equivalents and restricted cash at beginning of period | 368,788 | 329,364 | |||
Cash, cash equivalents and restricted cash at end of period | 339,380 | 446,842 | |||
Cash and cash equivalents | 275,581 | [1] | 357,308 | ||
Restricted cash at end of period | 63,799 | [1] | 89,534 | ||
Cash, cash equivalents and restricted cash at end of period | 339,380 | 446,842 | |||
Cash paid during the period for: | |||||
Interest | 366,088 | 287,699 | |||
Taxes refunded | (370) | (1,049) | |||
Supplemental Noncash Information: | |||||
Dividends declared but not paid on preferred stock | 1,478 | 1,478 | |||
Retention of mortgage servicing rights from loan sales | 84 | 0 | |||
Transfers from loans held-for-sale to loans held-for-investment | 2,818,171 | 1,137,194 | |||
Transfers from residential consumer loans to real estate owned | 13,833 | 11,874 | |||
Right-of-use asset obtained in exchange for operating lease liability | 0 | 337 | |||
Reduction in operating lease liability due to lease modification | $ 0 | $ 274 | |||
|
Organization |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Redwood Trust, Inc., together with its subsidiaries, is a specialty finance company focused on several distinct areas of housing credit, with a mission to help make quality housing, whether rented or owned, accessible to all American households. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the U.S. housing market not well served by government programs. We deliver customized housing credit investments to a diverse mix of investors through our best-in-class securitization platforms, whole-loan distribution activities and our publicly-traded securities. Our aggregation, origination and investment activities have evolved to incorporate a diverse mix of residential consumer and residential investor housing credit assets. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. We operate our business in three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking and Investment Portfolio. Our primary sources of income are net interest income from our investments and non-interest income from our mortgage banking activities. Net interest income primarily consists of the interest income we earn on investments less the interest expense we incur on borrowed funds and other liabilities. Income from mortgage banking activities is generated through the origination and acquisition of loans, and their subsequent sale, securitization, or transfer to our investment portfolios. Redwood Trust, Inc. has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), beginning with its taxable year ended December 31, 1994. We generally refer, collectively, to Redwood Trust, Inc. and those of its subsidiaries that are generally not subject to subsidiary-level corporate income tax as “the REIT” or “our REIT.” We generally refer to subsidiaries of Redwood Trust, Inc. that are subject to subsidiary-level corporate income tax as “our taxable REIT subsidiaries” or “TRS.” Redwood Trust, Inc. was incorporated in the State of Maryland on April 11, 1994, and commenced operations on August 19, 1994. References herein to “Redwood,” the “company,” “we,” “us,” and “our” include Redwood Trust, Inc. and its consolidated subsidiaries, unless the context otherwise requires. For a full description of our business, see Part I, Item 1—Business in our Annual Report on Form 10-K for the year ended December 31, 2023.
|
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements presented herein are at June 30, 2024 and December 31, 2023, and for the three and six months ended June 30, 2024 and 2023. These interim unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in our annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") — as prescribed by the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) — have been condensed or omitted in these interim financial statements according to these SEC rules and regulations. Management believes that the disclosures included in these interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, all normal and recurring adjustments have been made to present fairly the financial condition of the Company at June 30, 2024 and results of operations for all periods presented. The results of operations for the three and six months ended June 30, 2024 should not be construed as indicative of the results to be expected for the full year. In the first quarter of 2024, we updated the names of our Residential loans to Residential consumer loans and our Business purpose loans to Residential investor loans. There were no changes to the classifications of account balances as a result of these updates. in names. All prior period references in this document were conformed to this presentation. In the second quarter of 2024, we combined the presentation of Short-term and Long-term debt within Debt obligations, net and Goodwill and Intangible assets within Other assets on the consolidated balance sheets and consolidated statements of income, as applicable. There was no impact to the consolidated financial statements as a result of this change and all prior periods in this document were conformed to this presentation. Principles of Consolidation The consolidated financial statements include the accounts of the entities where the Company has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity ("VOE") or a variable interest entity ("VIE"). A VOE is an entity that has sufficient equity and in which equity investors have a controlling financial interest. The usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. if the Company has a controlling majority voting interest in a VOE, the entity is consolidated. A VIE is an entity that lacks one or more of the characteristics of a VOE. The Company has a controlling financial interest in and consolidates a VIE when the firm has a variable interest or interests that provide it with (i) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits for the VIE that could potentially be significant to the VIE. See Note 15 for further information about VIEs. For financial reporting purposes, we consolidate the assets and liabilities of certain entities formed in connection with the securitization of our loans and home equity investments ("HEI"), which we have determined to be VIEs and in which we have a controlling financial interest. The underlying loans owned at the consolidated securitization entities are shown under Residential consumer loans and Residential investor loans, at fair value on our consolidated balance sheets. The underlying HEI at the consolidated HEI securitization entities are shown under Home equity investments, at fair value on our consolidated balance sheets. See Note 11 for further discussion on HEI. The asset-backed securities (“ABS”) issued to third parties by these entities are shown under ABS issued. In our consolidated statements of income, we record interest income on the loans owned at these entities and interest expense on the ABS issued by these entities as well as fair value changes, other income and expenses associated with these entities' activities. See Note 16 for further discussion on ABS issued. We also consolidate two partnerships ("Servicing Investment" entities) through which we have invested in servicing-related assets. We maintain an 80% ownership interest in each entity and have determined that we are the primary beneficiary of these partnerships. See Note 15 for further discussion on Principles of consolidation. Use of Estimates The preparation of financial statements requires us to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amounts and timing of credit losses, prepayment rates, valuation allowances, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the consolidated financial statements and the reported amounts of certain revenues and expenses during the reported periods. It is likely that changes in these estimates (e.g., valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term. Our estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material.
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Summary of Significant Accounting Policies |
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Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Significant Accounting Policies Included in Note 3 to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2023 is a summary of our significant accounting policies. Recent Accounting Pronouncements Newly Adopted Accounting Standard Updates ("ASUs") In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform (Topic 848) - Deferral of the Sunset Date of Topic 848." This new guidance defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The objective of the guidance in Topic 848 is to provide temporary relief during the transition period. Through June 30, 2024, we had not elected to apply the optional expedients and exceptions to any of our existing contracts, hedging relationships, or other transactions. At June 30, 2024, we had no remaining LIBOR-indexed financial assets or liabilities. Other Recent Accounting Pronouncements Pending Adoption In August 2023, the FASB issued ASU 2023-05, "Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement." ASU 2023-05 requires a joint venture, upon formation, to initially measure its assets and liabilities at fair value. This generally aligns the treatment to be consistent with the guidance for business combinations. This new guidance is effective for all joint venture entities with a formation date on or after January 1, 2025, with early adoption permitted. Joint ventures formed prior to the adoption date may elect to apply the new guidance retrospectively back to their original formation date. We expect that this new guidance will not have a material impact on our consolidated financial statements and plan to adopt this new guidance by the required date. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. "ASU 2023-07 expands the breadth and frequency of segment disclosures by requiring disclosures of significant segment expenses regularly provided to the Chief Operating Decision Maker ("CODM") and included within the reported measures of a segment's profit or loss. Other disclosure requirements involve the amount and composition of other segment items and how the CODM uses the reported measures of profit or loss to assess segment performance and to decide how to allocate resources. The ASU does not change how a public entity identifies its operating segments, aggregates those operating segments or applies the quantitative thresholds to determine its reportable segments. This new guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We expect that this new guidance will result in additional disclosures in our consolidated financial statements and plan to adopt this new guidance by the required date. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." ASU 2023-09 improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation disclosures. Additionally, income taxes paid are required to be disaggregated by jurisdiction, along with other amendments to enhance the effectiveness of income tax disclosures. This new guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted and upon adoption, the guidance can be adopted on a prospective or retrospective basis. We expect that this new guidance will result in additional disclosures in our consolidated financial statements and plan to adopt this new guidance by the required date. In March 2024, the FASB issued ASU 2024-01, "Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards." ASU 2024-01 provides clarification for determining whether a profits interest award should be accounted for as a share-based payment arrangement or other compensation. This new guidance is effective for annual and interim periods beginning after December 15, 2024. Early adoption is permitted and upon adoption, the guidance can be adopted on a prospective or retrospective basis. We expect that this new guidance will not have a material impact on our consolidated financial statements and plan to adopt this new guidance by the required date.
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Redwood operates in three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking and Investment Portfolio. The accounting policies of the reportable segments are the same as those described in Note 3 — Summary of Significant Accounting Policies. For a full description of our segments, see Part I, Item 1—Business in our Annual Report on Form 10-K for the year ended December 31, 2023. In the normal course of business, loans are originated and acquired at our mortgage banking segments and may subsequently be transferred to our investment portfolio segment either as whole loans or through the retention of securities from securitizations we sponsor and consolidate under GAAP. All of our loans are accounted for under the fair value option and amounts transferred between segments are accounted for at fair value at the time of transfer. Segment contribution represents the measure of profit that management uses to assess the performance of our business segments and make resource allocation and operating decisions. Certain corporate expenses not directly assigned or allocated to one of our three segments are included in the Corporate/Other column as reconciling items to our consolidated financial statements. These unallocated corporate expenses primarily include interest expense for our convertible notes and trust preferred securities (and in 2024 and 2023, realized gains from the repurchase of convertible notes), indirect general and administrative expenses and other expenses. The following tables present financial information by segment for the three and six months ended June 30, 2024 and 2023. Table 4.1 – Business Segment Financial Information
The following table presents supplemental balance sheet information by segment at June 30, 2024 and December 31, 2023. Certain balance sheet accounts are not directly assigned or allocated to one of our three segments and are not reflected in the supplemental segment information provided below. Table 4.2 – Supplemental Segment Information
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Mortgage Banking Activities, Net |
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Mortgage Banking [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Banking Activities, Net | Mortgage Banking Activities, Net The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income for the three and six months ended June 30, 2024 and 2023. Table 5.1 – Mortgage Banking Activities
(1)Includes changes in fair value for associated loan purchase commitments for residential consumer loans,. (2)For the three and six months ended June 30, 2024 and 2023, this represents the fair value changes on trading securities being used as hedges to manage the mark-to-market risks associated with our Residential Consumer Mortgage Banking operations. (3)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations and other derivative financial instruments such as loan purchase commitments and interest rate locks. (4)Amounts in this line item include other fee income from loan acquisitions, and provisions for repurchases, presented net. (5)Amounts in this line item include other fee income from loan originations.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments For financial reporting purposes, we follow a fair value hierarchy established under GAAP that is used to determine the fair value of financial instruments. This hierarchy prioritizes relevant market inputs in order to determine an “exit price” at the measurement date, or the price at which an asset could be sold or a liability could be transferred in an orderly process that is not a forced liquidation or distressed sale. Level 1 inputs are observable inputs that reflect quoted prices for identical assets or liabilities in active markets. Level 2 inputs are observable inputs other than quoted prices for an asset or liability that are obtained through corroboration with observable market data. Level 3 inputs are unobservable inputs (e.g., our own data or assumptions) that are used when there is little, if any, relevant market activity for the asset or liability required to be measured at fair value. In certain cases, inputs used to measure fair value fall into different levels of the fair value hierarchy. In such cases, the level at which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input requires judgment and considers factors specific to the asset or liability being measured. Determination of Fair Value Included in Note 5 to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2023 is a more detailed description of our financial instruments measured at fair value and their significant inputs, as well as the general classification of such instruments pursuant to the Level 1, Level 2, and Level 3 valuation hierarchy. At June 30, 2024, our valuation policy and processes had not changed from those described in our Annual Report on Form 10-K for the year ended December 31, 2023. Certain of our Other investments (inclusive of strategic investments in early-stage companies) are Level 3 financial instruments that we account for under the fair value option. These investments generally take the form of equity or debt with conversion features and do not have readily determinable fair values. We initially record these investments at cost and adjust their fair value based on observable price changes, such as follow-on capital raises by these companies or secondary sales of these, or similar, equity or debt instruments, and will also evaluate impacts to valuation from changing market conditions and underlying business performance. As of June 30, 2024, the carrying value of these investments was $3 million. See Note 12 for further discussion on Other Investments. The following table presents the assets and liabilities that are reported at fair value on our consolidated balance sheets on a recurring basis at June 30, 2024 and December 31, 2023, as well as the fair value hierarchy of the valuation inputs used to measure fair value. Table 6.1 – Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the six months ended June 30, 2024. Table 6.2 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis
(1) Other settlements, net: for residential consumer and residential investor loans, represents the transfer of loans to REO; for derivatives, represents the transfer of the fair value of loan purchase and interest rate lock commitments at the time loans are acquired to the basis of residential consumer and residential investor loans; and for mortgage servicing rights ("MSRs) and other investments, primarily represents an investment that was exchanged into a new instrument that is no longer measured at fair value on a recurring basis. (2) For the purpose of this presentation, derivative assets and liabilities, which consist of loan purchase commitments, are presented on a net basis. The following table presents the portion of fair value gains or losses included in our consolidated statements of income that were attributable to Level 3 assets and liabilities recorded at fair value on a recurring basis and held at June 30, 2024 and 2023. Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the three and six months ended June 30, 2024 and 2023 are not included in this presentation. Table 6.3 – Portion of Net Fair Value Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held at June 30, 2024 and June 30, 2023 Included in Net Income
(1) Represents the portion of net fair value gains or losses included in our consolidated statements of income related to securitized loans, securitized Home Equity Investments ("HEI"), and the associated ABS issued at our consolidated securitization entities held at June 30, 2024 and June 30, 2023, which, netted together, represent the change in value of our investments at the consolidated VIEs under the CFE election, excluding REO. The following table presents the net market valuation gains and losses recorded in each line item of our consolidated statements of income for the three and six months ended June 30, 2024 and 2023. Table 6.4 – Market Valuation Gains and Losses, Net
Footnotes to Table 6.4 (1)Represents fair value changes on trading securities that are being used along with risk management derivatives to manage the market risks associated with our Residential Consumer Mortgage Banking operations. (2)Mortgage banking activities, net presented above does not include fee income from loan originations or acquisitions, provisions for repurchases, or other expenses that are components of Mortgage banking activities, net presented on our consolidated statements of income, as these amounts do not represent market valuation changes. (3)Includes changes in fair value of the residential consumer loans held-for-investment, securitized HEI, REO and the ABS issued at the entities, which, netted together, represent the change in value of our investments at the consolidated VIEs accounted for under the CFE election. (4)Other income presented above does not include net MSR fee income or provisions for repurchases of MSRs, as these amounts do not represent market valuation adjustments. The following table provides quantitative information about the significant unobservable inputs used in the valuation of our Level 3 assets and liabilities measured at fair value. Table 6.5 – Fair Value Methodology for Level 3 Financial Instruments
Table 6.5 – Fair Value Methodology for Level 3 Financial Instruments (continued)
(1)The weighted average input values for all loan types are based on unpaid principal balance. The weighted average input values for all other assets and liabilities are based on relative fair value. (2)Values represent pricing inputs used in securitization pricing model. Credit spreads represent spreads to applicable swap rates unless specified otherwise. (3)The fair value of the loans and HEI held by consolidated entities is based on the fair value of the ABS issued by these entities and the securities and other investments we own in those entities, which we determined were more readily observable in accordance with accounting guidance for collateralized financing entities. At June 30, 2024, the fair value of securities we owned at the consolidated Sequoia, CAFL Term, CAFL Bridge (under CFE), Freddie Mac SLST, Freddie Mac K-Series, and HEI securitization entities was $264 million, $337 million, $25 million, $258 million, $34 million, and $41 million, respectively. CAFL Bridge only includes the one securitization entity for which we made the CFE election. (4)Represents the estimated average duration of outstanding servicer advances at a given point in time (not taking into account new advances made with respect to the pool). (5)Fair value presented in this line item for ABS issued at consolidated HEI entities does not include non-controlling interests in our HEI entities, which we account for separately as liabilities in our Consolidated Balance Sheets and carry at fair value. However, given the HEI non-controlling interests are priced using the same model and inputs, the unobservable inputs and input values provided in this section include those for the HEI non-controlling interests. The following table summarizes the estimated fair values presents of assets and liabilities that are not measured at fair value at June 30, 2024 and December 31, 2023. Table 6.6 – Carrying Values and Estimated Fair Values of Assets and Liabilities
(1)These liabilities are included in Accrued expenses and other liabilities on our consolidated balance sheets. During the three and six months ended June 30, 2024, we elected the fair value option for $16 million and $64 million of securities, respectively, $1.87 billion and $2.87 billion (principal balance) of residential consumer loans, respectively, and $452 million and $779 million (principal balance) of residential investor loans, respectively. Additionally, during the three and six months ended June 30, 2024, we elected the fair value option for $0.3 million and $0.6 million of HEI, respectively. For the three and six months ended June 30, 2024, we elected the fair value option for $9 thousand and $0.2 million, respectively, of Other investments. Nonrecurring Fair Values We measure the fair value of certain assets and liabilities on a nonrecurring basis when events or changes in circumstances indicate that the carrying value may be impaired. Adjustments to fair value generally result from the write-down of asset value due to impairment. Refer to Note 14 for further information on our Real estate owned ("REO").
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Residential Consumer Loans |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Consumer Loans | Residential Consumer Loans We acquire residential consumer 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 consumer loans owned at Redwood and at the consolidated Sequoia and Freddie Mac SLST entities at June 30, 2024 and December 31, 2023. Table 7.1 – Classifications and Carrying Values of Residential Consumer Loans
At June 30, 2024, we owned mortgage servicing rights associated with $946 million (principal balance) of residential consumer 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 Consumer Loans Held-for-Sale The following table summarizes the characteristics of residential consumer loans held-for-sale at June 30, 2024 and December 31, 2023. Table 7.2 – Characteristics of Residential Consumer Loans Held-for-Sale
At both June 30, 2024 and December 31, 2023, there were no residential consumer loans held-for-sale that were 90 days or more delinquent or in foreclosure. The following table provides the activity of residential consumer loans held-for-sale during the three and six months ended June 30, 2024 and 2023. Table 7.3 – Activity of Residential Consumer Loans Held-for-Sale
(1)Net market valuation gains (losses) on residential consumer loans held-for-sale are recorded primarily through Mortgage banking activities, net on our consolidated statements of income. Residential Consumer Loans Held-for-Investment at Fair Value We invest in residential subordinate securities issued by Sequoia and Freddie Mac SLST securitization trusts and consolidate the underlying residential consumer loans owned by these entities for financial reporting purposes in accordance with GAAP. The following tables summarize the characteristics of the residential consumer loans owned at consolidated Sequoia and Freddie Mac SLST entities at June 30, 2024 and December 31, 2023. Table 7.4 – Characteristics of Residential Consumer Loans Held-for-Investment
(1)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 the accounting guidance for collateralized financing entities. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 17.2. (2)For loans held at consolidated entities, the number and unpaid principal balance of loans 90+ days delinquent includes loans in foreclosure. For loans held at our consolidated 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 the measurement alternative provided for collateralized financing entities, and are recorded in Investment fair value changes, net on our consolidated statements of income. The following table provides the activity of residential consumer loans held-for-investment at consolidated entities during the three and six months ended June 30, 2024 and 2023. Table 7.5 – Activity of Residential Consumer Loans Held-for-Investment at Consolidated Entities
(1)Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. Residential Investor LoansWe originate and invest in residential investor loans, including term loans and bridge loans. The following table summarizes the classifications and carrying values of the residential investor loans owned at Redwood and at consolidated CAFL entities at June 30, 2024 and December 31, 2023. Table 8.1 – Classifications and Carrying Values of Residential Investor Loans
Nearly all of the outstanding residential investor term loans at June 30, 2024 were first-lien, fixed-rate loans with original maturities of , , , or ten years. The outstanding residential investor bridge loans held-for-investment at June 30, 2024 were first-lien, interest-only loans with original maturities of 6 to 36 months and were comprised of 67% one-month SOFR-indexed adjustable-rate loans, and 33% fixed-rate loans. At June 30, 2024, we had $448 million in commitments to fund residential investor bridge loans. See Note 18 for additional information on these commitments. During the three months and six months ended June 30, 2024, we sold $135 million and $187 million, of residential investor bridge loans, net of $6 million and $21 million, respectively, of construction draws, to our joint ventures. See Note 12 for additional information on these joint ventures. The following table provides the activity of residential investor loans at Redwood during the three and six months ended June 30, 2024 and 2023. Table 8.2 – Activity of Residential Investor Loans at Redwood
(1)For the three and six months ended June 30, 2024 the principal balance of loans sold to third parties is net of $6 million and $21 million, respectively, related to construction draws on residential investor bridge loans sold to our joint ventures. See Note 12 for additional information on these joint ventures. (2)For residential investor term at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL term securitizations. For residential investor bridge at Redwood, represents the transfer of residential investor bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their inclusion in one of our bridge loan securitizations, which generally have replenishment features. (3)Represents net market valuation changes from the time a loan is originated to when it is sold, securitized or transferred to our investment portfolio. See Table 5.1 for additional detail on Mortgage banking activities income (loss). Residential Investor Loans Held-for-Investment at CAFL We invest in securities issued by CAFL securitizations sponsored by CoreVest and consolidate the underlying residential investor term loans and bridge loans owned by these entities. The following table provides the activity of residential investor loans held-for-investment at CAFL during the three and six months ended June 30, 2024 and 2023. Table 8.3 – Activity of Residential Investor Loans Held-for-Investment at CAFL
(1)Net market valuation gains (losses) on residential investor loans held-for-investment at CAFL are recorded through Investment fair value changes, net on our consolidated statements of income. For loans held at our consolidated CAFL Term entities and one CAFL Bridge 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 associated with our economic investment in these securitization entities is presented in Tables 15.1 and 15.2. We did not elect to account for two of our CAFL Bridge securitizations under the collateralized financing entity guidelines but have elected to account for the loans in these securitizations at fair value, and changes in fair value for these loans are recorded through Investment fair value changes, net on our consolidated statements of income. Residential Investor Loan Characteristics The following tables summarize the characteristics of the residential investor loans owned at Redwood and at consolidated CAFL entities at June 30, 2024 and December 31, 2023. Table 8.4 – Characteristics of Residential Investor Loans
(1)The fair value of the loans held by consolidated CAFL Term entities and one CAFL Bridge entity were 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 the accounting guidance for collateralized financing entities. (2)The number of loans 90+ days delinquent includes loans in foreclosure. (3)May include loans that are less than 90 days delinquent. The following table presents the unpaid principal balance of business purpose loans recorded on our consolidated balance sheets at June 30, 2024 by collateral/strategy type. Table 8.5 – Residential Investor Loans Collateral/Strategy Type
(1)The fair value of the loans held by consolidated CAFL Term entities and one CAFL Bridge entity were 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 GAAP for collateralized financing entities. (2) Includes loans to finance acquisition and/or stabilization of existing housing stock or to finance new construction of residential properties for rent. (3) Includes loans for light to moderate renovation of residential and small multifamily properties (generally less than 20 units). (4) Includes loans for predominantly light to moderate rehabilitation projects on multifamily properties. Loan Modifications We may amend or modify a loan depending on the loan's specific facts and circumstances. These loan modifications typically include amendments and restructuring and include terms such as additional time for the borrower to refinance or sell the collateral property, interest rate reductions and/or deferral of scheduled principal and/or interest payments. In some instances, a loan amendment or restructuring may bring the loan out of delinquent status. In exchange for a modification, we may receive a partial repayment of principal, a short-term accrual of capitalized interest for a portion of interest due, a capital infusion to replenish interest or capital improvement reserves and/or termination of all or a portion of the remaining unfunded loan commitment. For the three and six months ended June 30, 2024, we modified residential investor loans with an aggregate unpaid principal balance of $379 million and $429 million, respectively, with an aggregate fair value of $369 million and $417 million, respectively. At the time of modification, the weighted average length of time these loans were past due was under three months for both the three and six months ended June 30, 2024. Of the modified loans for the three months ending June 30, 2024, $43 million included loans in forbearance without a rate reduction and $335 million included reductions in interest rates (including, in certain cases, deferrals of interest), among other terms, and in certain cases, combined with infusions of fresh capital from either the existing sponsor or new sources. For the three and six months ended June 30, 2024, the average length of maturity extensions granted on residential investor bridge loans was just under five months and seven months, respectively. Nonaccrual Loans Interest income is accrued on loans in the period the coupon interest is contractually earned until such time a loan is placed on non-accrual status. A loan is placed on non-accrual status when it is probable that all principal and interest due under the contractual terms will not be collected and a loan is past due more than 90 days. Income from non-accrual loans is generally recognized on a cash basis when it is received. At the time a loan is placed on non-accrual status, all previously accrued but uncollected interest is reversed against interest income and interest subsequently collected is recognized on a cash basis to the extent the loan balance is deemed collectible or until such time the loan qualifies to be placed back on accrual status. Generally, a loan is placed back on accrual status when the loan becomes contractually current or the collection of past due and future payments is reasonably assured either through reinstatement by the borrower, estimated net equity in the underlying real estate property or both. At June 30, 2024 and December 31, 2023, residential investor loans with an aggregate unpaid principal balance of $324 million and $340 million, respectively, and an aggregate fair value of $290 million and $312 million, respectively, were on non-accrual status. Of this balance, loans with an aggregate unpaid principal balance of $204 million and $207 million were less than 90 days past due (including loans that were contractually current) as of June 30, 2024 and December 31, 2023, respectively. 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 June 30, 2024 and December 31, 2023. Table 9.1 – Characteristics of Consolidated Agency Multifamily Loans
There were no consolidated agency multifamily loans with 90+ day delinquencies and no multifamily loans in foreclosure at June 30, 2024 and December 31, 2023. The outstanding Consolidated Agency multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at June 30, 2024 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 three and six months ended June 30, 2024 and 2023. Table 9.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment
(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. 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 15.2.
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Residential Investor Loans | Residential Consumer Loans We acquire residential consumer 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 consumer loans owned at Redwood and at the consolidated Sequoia and Freddie Mac SLST entities at June 30, 2024 and December 31, 2023. Table 7.1 – Classifications and Carrying Values of Residential Consumer Loans
At June 30, 2024, we owned mortgage servicing rights associated with $946 million (principal balance) of residential consumer 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 Consumer Loans Held-for-Sale The following table summarizes the characteristics of residential consumer loans held-for-sale at June 30, 2024 and December 31, 2023. Table 7.2 – Characteristics of Residential Consumer Loans Held-for-Sale
At both June 30, 2024 and December 31, 2023, there were no residential consumer loans held-for-sale that were 90 days or more delinquent or in foreclosure. The following table provides the activity of residential consumer loans held-for-sale during the three and six months ended June 30, 2024 and 2023. Table 7.3 – Activity of Residential Consumer Loans Held-for-Sale
(1)Net market valuation gains (losses) on residential consumer loans held-for-sale are recorded primarily through Mortgage banking activities, net on our consolidated statements of income. Residential Consumer Loans Held-for-Investment at Fair Value We invest in residential subordinate securities issued by Sequoia and Freddie Mac SLST securitization trusts and consolidate the underlying residential consumer loans owned by these entities for financial reporting purposes in accordance with GAAP. The following tables summarize the characteristics of the residential consumer loans owned at consolidated Sequoia and Freddie Mac SLST entities at June 30, 2024 and December 31, 2023. Table 7.4 – Characteristics of Residential Consumer Loans Held-for-Investment
(1)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 the accounting guidance for collateralized financing entities. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 17.2. (2)For loans held at consolidated entities, the number and unpaid principal balance of loans 90+ days delinquent includes loans in foreclosure. For loans held at our consolidated 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 the measurement alternative provided for collateralized financing entities, and are recorded in Investment fair value changes, net on our consolidated statements of income. The following table provides the activity of residential consumer loans held-for-investment at consolidated entities during the three and six months ended June 30, 2024 and 2023. Table 7.5 – Activity of Residential Consumer Loans Held-for-Investment at Consolidated Entities
(1)Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. Residential Investor LoansWe originate and invest in residential investor loans, including term loans and bridge loans. The following table summarizes the classifications and carrying values of the residential investor loans owned at Redwood and at consolidated CAFL entities at June 30, 2024 and December 31, 2023. Table 8.1 – Classifications and Carrying Values of Residential Investor Loans
Nearly all of the outstanding residential investor term loans at June 30, 2024 were first-lien, fixed-rate loans with original maturities of , , , or ten years. The outstanding residential investor bridge loans held-for-investment at June 30, 2024 were first-lien, interest-only loans with original maturities of 6 to 36 months and were comprised of 67% one-month SOFR-indexed adjustable-rate loans, and 33% fixed-rate loans. At June 30, 2024, we had $448 million in commitments to fund residential investor bridge loans. See Note 18 for additional information on these commitments. During the three months and six months ended June 30, 2024, we sold $135 million and $187 million, of residential investor bridge loans, net of $6 million and $21 million, respectively, of construction draws, to our joint ventures. See Note 12 for additional information on these joint ventures. The following table provides the activity of residential investor loans at Redwood during the three and six months ended June 30, 2024 and 2023. Table 8.2 – Activity of Residential Investor Loans at Redwood
(1)For the three and six months ended June 30, 2024 the principal balance of loans sold to third parties is net of $6 million and $21 million, respectively, related to construction draws on residential investor bridge loans sold to our joint ventures. See Note 12 for additional information on these joint ventures. (2)For residential investor term at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL term securitizations. For residential investor bridge at Redwood, represents the transfer of residential investor bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their inclusion in one of our bridge loan securitizations, which generally have replenishment features. (3)Represents net market valuation changes from the time a loan is originated to when it is sold, securitized or transferred to our investment portfolio. See Table 5.1 for additional detail on Mortgage banking activities income (loss). Residential Investor Loans Held-for-Investment at CAFL We invest in securities issued by CAFL securitizations sponsored by CoreVest and consolidate the underlying residential investor term loans and bridge loans owned by these entities. The following table provides the activity of residential investor loans held-for-investment at CAFL during the three and six months ended June 30, 2024 and 2023. Table 8.3 – Activity of Residential Investor Loans Held-for-Investment at CAFL
(1)Net market valuation gains (losses) on residential investor loans held-for-investment at CAFL are recorded through Investment fair value changes, net on our consolidated statements of income. For loans held at our consolidated CAFL Term entities and one CAFL Bridge 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 associated with our economic investment in these securitization entities is presented in Tables 15.1 and 15.2. We did not elect to account for two of our CAFL Bridge securitizations under the collateralized financing entity guidelines but have elected to account for the loans in these securitizations at fair value, and changes in fair value for these loans are recorded through Investment fair value changes, net on our consolidated statements of income. Residential Investor Loan Characteristics The following tables summarize the characteristics of the residential investor loans owned at Redwood and at consolidated CAFL entities at June 30, 2024 and December 31, 2023. Table 8.4 – Characteristics of Residential Investor Loans
(1)The fair value of the loans held by consolidated CAFL Term entities and one CAFL Bridge entity were 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 the accounting guidance for collateralized financing entities. (2)The number of loans 90+ days delinquent includes loans in foreclosure. (3)May include loans that are less than 90 days delinquent. The following table presents the unpaid principal balance of business purpose loans recorded on our consolidated balance sheets at June 30, 2024 by collateral/strategy type. Table 8.5 – Residential Investor Loans Collateral/Strategy Type
(1)The fair value of the loans held by consolidated CAFL Term entities and one CAFL Bridge entity were 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 GAAP for collateralized financing entities. (2) Includes loans to finance acquisition and/or stabilization of existing housing stock or to finance new construction of residential properties for rent. (3) Includes loans for light to moderate renovation of residential and small multifamily properties (generally less than 20 units). (4) Includes loans for predominantly light to moderate rehabilitation projects on multifamily properties. Loan Modifications We may amend or modify a loan depending on the loan's specific facts and circumstances. These loan modifications typically include amendments and restructuring and include terms such as additional time for the borrower to refinance or sell the collateral property, interest rate reductions and/or deferral of scheduled principal and/or interest payments. In some instances, a loan amendment or restructuring may bring the loan out of delinquent status. In exchange for a modification, we may receive a partial repayment of principal, a short-term accrual of capitalized interest for a portion of interest due, a capital infusion to replenish interest or capital improvement reserves and/or termination of all or a portion of the remaining unfunded loan commitment. For the three and six months ended June 30, 2024, we modified residential investor loans with an aggregate unpaid principal balance of $379 million and $429 million, respectively, with an aggregate fair value of $369 million and $417 million, respectively. At the time of modification, the weighted average length of time these loans were past due was under three months for both the three and six months ended June 30, 2024. Of the modified loans for the three months ending June 30, 2024, $43 million included loans in forbearance without a rate reduction and $335 million included reductions in interest rates (including, in certain cases, deferrals of interest), among other terms, and in certain cases, combined with infusions of fresh capital from either the existing sponsor or new sources. For the three and six months ended June 30, 2024, the average length of maturity extensions granted on residential investor bridge loans was just under five months and seven months, respectively. Nonaccrual Loans Interest income is accrued on loans in the period the coupon interest is contractually earned until such time a loan is placed on non-accrual status. A loan is placed on non-accrual status when it is probable that all principal and interest due under the contractual terms will not be collected and a loan is past due more than 90 days. Income from non-accrual loans is generally recognized on a cash basis when it is received. At the time a loan is placed on non-accrual status, all previously accrued but uncollected interest is reversed against interest income and interest subsequently collected is recognized on a cash basis to the extent the loan balance is deemed collectible or until such time the loan qualifies to be placed back on accrual status. Generally, a loan is placed back on accrual status when the loan becomes contractually current or the collection of past due and future payments is reasonably assured either through reinstatement by the borrower, estimated net equity in the underlying real estate property or both. At June 30, 2024 and December 31, 2023, residential investor loans with an aggregate unpaid principal balance of $324 million and $340 million, respectively, and an aggregate fair value of $290 million and $312 million, respectively, were on non-accrual status. Of this balance, loans with an aggregate unpaid principal balance of $204 million and $207 million were less than 90 days past due (including loans that were contractually current) as of June 30, 2024 and December 31, 2023, respectively. 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 June 30, 2024 and December 31, 2023. Table 9.1 – Characteristics of Consolidated Agency Multifamily Loans
There were no consolidated agency multifamily loans with 90+ day delinquencies and no multifamily loans in foreclosure at June 30, 2024 and December 31, 2023. The outstanding Consolidated Agency multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at June 30, 2024 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 three and six months ended June 30, 2024 and 2023. Table 9.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment
(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. 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 15.2.
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Agency Multifamily Loans | Residential Consumer Loans We acquire residential consumer 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 consumer loans owned at Redwood and at the consolidated Sequoia and Freddie Mac SLST entities at June 30, 2024 and December 31, 2023. Table 7.1 – Classifications and Carrying Values of Residential Consumer Loans
At June 30, 2024, we owned mortgage servicing rights associated with $946 million (principal balance) of residential consumer 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 Consumer Loans Held-for-Sale The following table summarizes the characteristics of residential consumer loans held-for-sale at June 30, 2024 and December 31, 2023. Table 7.2 – Characteristics of Residential Consumer Loans Held-for-Sale
At both June 30, 2024 and December 31, 2023, there were no residential consumer loans held-for-sale that were 90 days or more delinquent or in foreclosure. The following table provides the activity of residential consumer loans held-for-sale during the three and six months ended June 30, 2024 and 2023. Table 7.3 – Activity of Residential Consumer Loans Held-for-Sale
(1)Net market valuation gains (losses) on residential consumer loans held-for-sale are recorded primarily through Mortgage banking activities, net on our consolidated statements of income. Residential Consumer Loans Held-for-Investment at Fair Value We invest in residential subordinate securities issued by Sequoia and Freddie Mac SLST securitization trusts and consolidate the underlying residential consumer loans owned by these entities for financial reporting purposes in accordance with GAAP. The following tables summarize the characteristics of the residential consumer loans owned at consolidated Sequoia and Freddie Mac SLST entities at June 30, 2024 and December 31, 2023. Table 7.4 – Characteristics of Residential Consumer Loans Held-for-Investment
(1)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 the accounting guidance for collateralized financing entities. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 17.2. (2)For loans held at consolidated entities, the number and unpaid principal balance of loans 90+ days delinquent includes loans in foreclosure. For loans held at our consolidated 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 the measurement alternative provided for collateralized financing entities, and are recorded in Investment fair value changes, net on our consolidated statements of income. The following table provides the activity of residential consumer loans held-for-investment at consolidated entities during the three and six months ended June 30, 2024 and 2023. Table 7.5 – Activity of Residential Consumer Loans Held-for-Investment at Consolidated Entities
(1)Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. Residential Investor LoansWe originate and invest in residential investor loans, including term loans and bridge loans. The following table summarizes the classifications and carrying values of the residential investor loans owned at Redwood and at consolidated CAFL entities at June 30, 2024 and December 31, 2023. Table 8.1 – Classifications and Carrying Values of Residential Investor Loans
Nearly all of the outstanding residential investor term loans at June 30, 2024 were first-lien, fixed-rate loans with original maturities of , , , or ten years. The outstanding residential investor bridge loans held-for-investment at June 30, 2024 were first-lien, interest-only loans with original maturities of 6 to 36 months and were comprised of 67% one-month SOFR-indexed adjustable-rate loans, and 33% fixed-rate loans. At June 30, 2024, we had $448 million in commitments to fund residential investor bridge loans. See Note 18 for additional information on these commitments. During the three months and six months ended June 30, 2024, we sold $135 million and $187 million, of residential investor bridge loans, net of $6 million and $21 million, respectively, of construction draws, to our joint ventures. See Note 12 for additional information on these joint ventures. The following table provides the activity of residential investor loans at Redwood during the three and six months ended June 30, 2024 and 2023. Table 8.2 – Activity of Residential Investor Loans at Redwood
(1)For the three and six months ended June 30, 2024 the principal balance of loans sold to third parties is net of $6 million and $21 million, respectively, related to construction draws on residential investor bridge loans sold to our joint ventures. See Note 12 for additional information on these joint ventures. (2)For residential investor term at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL term securitizations. For residential investor bridge at Redwood, represents the transfer of residential investor bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their inclusion in one of our bridge loan securitizations, which generally have replenishment features. (3)Represents net market valuation changes from the time a loan is originated to when it is sold, securitized or transferred to our investment portfolio. See Table 5.1 for additional detail on Mortgage banking activities income (loss). Residential Investor Loans Held-for-Investment at CAFL We invest in securities issued by CAFL securitizations sponsored by CoreVest and consolidate the underlying residential investor term loans and bridge loans owned by these entities. The following table provides the activity of residential investor loans held-for-investment at CAFL during the three and six months ended June 30, 2024 and 2023. Table 8.3 – Activity of Residential Investor Loans Held-for-Investment at CAFL
(1)Net market valuation gains (losses) on residential investor loans held-for-investment at CAFL are recorded through Investment fair value changes, net on our consolidated statements of income. For loans held at our consolidated CAFL Term entities and one CAFL Bridge 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 associated with our economic investment in these securitization entities is presented in Tables 15.1 and 15.2. We did not elect to account for two of our CAFL Bridge securitizations under the collateralized financing entity guidelines but have elected to account for the loans in these securitizations at fair value, and changes in fair value for these loans are recorded through Investment fair value changes, net on our consolidated statements of income. Residential Investor Loan Characteristics The following tables summarize the characteristics of the residential investor loans owned at Redwood and at consolidated CAFL entities at June 30, 2024 and December 31, 2023. Table 8.4 – Characteristics of Residential Investor Loans
(1)The fair value of the loans held by consolidated CAFL Term entities and one CAFL Bridge entity were 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 the accounting guidance for collateralized financing entities. (2)The number of loans 90+ days delinquent includes loans in foreclosure. (3)May include loans that are less than 90 days delinquent. The following table presents the unpaid principal balance of business purpose loans recorded on our consolidated balance sheets at June 30, 2024 by collateral/strategy type. Table 8.5 – Residential Investor Loans Collateral/Strategy Type
(1)The fair value of the loans held by consolidated CAFL Term entities and one CAFL Bridge entity were 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 GAAP for collateralized financing entities. (2) Includes loans to finance acquisition and/or stabilization of existing housing stock or to finance new construction of residential properties for rent. (3) Includes loans for light to moderate renovation of residential and small multifamily properties (generally less than 20 units). (4) Includes loans for predominantly light to moderate rehabilitation projects on multifamily properties. Loan Modifications We may amend or modify a loan depending on the loan's specific facts and circumstances. These loan modifications typically include amendments and restructuring and include terms such as additional time for the borrower to refinance or sell the collateral property, interest rate reductions and/or deferral of scheduled principal and/or interest payments. In some instances, a loan amendment or restructuring may bring the loan out of delinquent status. In exchange for a modification, we may receive a partial repayment of principal, a short-term accrual of capitalized interest for a portion of interest due, a capital infusion to replenish interest or capital improvement reserves and/or termination of all or a portion of the remaining unfunded loan commitment. For the three and six months ended June 30, 2024, we modified residential investor loans with an aggregate unpaid principal balance of $379 million and $429 million, respectively, with an aggregate fair value of $369 million and $417 million, respectively. At the time of modification, the weighted average length of time these loans were past due was under three months for both the three and six months ended June 30, 2024. Of the modified loans for the three months ending June 30, 2024, $43 million included loans in forbearance without a rate reduction and $335 million included reductions in interest rates (including, in certain cases, deferrals of interest), among other terms, and in certain cases, combined with infusions of fresh capital from either the existing sponsor or new sources. For the three and six months ended June 30, 2024, the average length of maturity extensions granted on residential investor bridge loans was just under five months and seven months, respectively. Nonaccrual Loans Interest income is accrued on loans in the period the coupon interest is contractually earned until such time a loan is placed on non-accrual status. A loan is placed on non-accrual status when it is probable that all principal and interest due under the contractual terms will not be collected and a loan is past due more than 90 days. Income from non-accrual loans is generally recognized on a cash basis when it is received. At the time a loan is placed on non-accrual status, all previously accrued but uncollected interest is reversed against interest income and interest subsequently collected is recognized on a cash basis to the extent the loan balance is deemed collectible or until such time the loan qualifies to be placed back on accrual status. Generally, a loan is placed back on accrual status when the loan becomes contractually current or the collection of past due and future payments is reasonably assured either through reinstatement by the borrower, estimated net equity in the underlying real estate property or both. At June 30, 2024 and December 31, 2023, residential investor loans with an aggregate unpaid principal balance of $324 million and $340 million, respectively, and an aggregate fair value of $290 million and $312 million, respectively, were on non-accrual status. Of this balance, loans with an aggregate unpaid principal balance of $204 million and $207 million were less than 90 days past due (including loans that were contractually current) as of June 30, 2024 and December 31, 2023, respectively. 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 June 30, 2024 and December 31, 2023. Table 9.1 – Characteristics of Consolidated Agency Multifamily Loans
There were no consolidated agency multifamily loans with 90+ day delinquencies and no multifamily loans in foreclosure at June 30, 2024 and December 31, 2023. The outstanding Consolidated Agency multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at June 30, 2024 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 three and six months ended June 30, 2024 and 2023. Table 9.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment
(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. 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 15.2.
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Securities | Real Estate Securities We invest in real estate securities that we create and retain from our unconsolidated Sequoia securitizations or acquire from third parties. The following table presents the fair values of our real estate securities by type at June 30, 2024 and December 31, 2023. Table 10.1 – Fair Value of Real Estate Securities by Type
Our real estate securities include mortgage-backed securities, which are presented in accordance with their general position within a securitization structure based on their rights to cash flows. Senior securities are those interests in a securitization that generally have the first right to cash flows and are last in line to absorb losses. Mezzanine securities are interests that are generally subordinate to senior securities in their rights to receive cash flows, and have subordinate securities below them that are first to absorb losses. Subordinate securities are all interests below mezzanine. Nearly all of our residential securities are supported by collateral that was designated as prime at the time of issuance. Trading Securities We elected the fair value option for certain securities and classify them as trading securities. Our trading securities include both residential and multifamily mortgage-backed securities. The following table presents the fair value of trading securities by position and collateral type at June 30, 2024 and December 31, 2023. Table 10.2 – Fair Value of Trading Securities by Position
(1)Includes $32 million and $28 million of Sequoia certificated mortgage servicing rights at June 30, 2024 and December 31, 2023, respectively. The following table presents the unpaid principal balance of trading securities by position and collateral type at June 30, 2024 and December 31, 2023. Table 10.3 – Unpaid Principal Balance of Trading Securities by Position
(1)Our senior trading securities are comprised of interest-only securities, for which there is no principal balance. The following table provides the activity of trading securities during the three and six months ended June 30, 2024 and 2023. Table 10.4 – Trading Securities Activity
(1)Net market valuation gains (losses) on trading securities are recorded through Investment fair value changes, net and Mortgage banking activities, net on our consolidated statements of income. AFS Securities The following table presents the fair value of our available-for-sale ("AFS") securities by position and collateral type at June 30, 2024 and December 31, 2023. Table 10.5 – Fair Value of Available-for-Sale Securities by Position
The following table provides the activity of available-for-sale securities during the three and six months ended June 30, 2024 and 2023. Table 10.6 – Available-for-Sale Securities Activity
(1)Net unrealized gains (losses) on AFS securities are recorded on our consolidated balance sheets through Accumulated other comprehensive loss. At June 30, 2024, we had $26 million of AFS securities with contractual maturities less than five years, $4 million with contractual maturities greater than five years but less than ten years, and the remainder of our AFS securities had contractual maturities greater than ten years. We often purchase AFS securities at a discount to their outstanding principal balances. To the extent we purchase an AFS security that has a likelihood of incurring a loss, we do not amortize into income the portion of the purchase discount that we do not expect to collect due to the inherent credit risk of the security. We may also expense a portion of our investment in the security to the extent we believe that principal losses will exceed the purchase discount. We designate any amount of unpaid principal balance that we do not expect to receive and thus do not expect to earn or recover as a credit reserve on the security. Any remaining net unamortized discounts or premiums on the security are amortized into income over time using the effective yield method. The following table presents the components of carrying value (which equals fair value) of AFS securities at June 30, 2024 and December 31, 2023. Table 10.7 – Carrying Value of AFS Securities
The following table presents the changes for the three and six months ended June 30, 2024, in unamortized discount and designated credit reserves on residential AFS securities. Table 10.8 – Changes in Unamortized Discount and Designated Credit Reserves on AFS Securities
AFS Securities with Unrealized Losses The following table presents the total carrying value (fair value) and unrealized losses of residential AFS securities that were in a gross unrealized loss position at June 30, 2024 and December 31, 2023. Table 10.9 – AFS Securities in Gross Unrealized Loss Position by Holding Periods
At June 30, 2024, after giving effect to purchases, sales, and extinguishment due to credit losses, our consolidated balance sheets included 76 AFS securities, of which 16 were in an unrealized loss position and 12 were in a continuous unrealized loss position for 12 consecutive months or longer. At December 31, 2023, our consolidated balance sheets included 66 AFS securities, of which 21 were in an unrealized loss position and 19 were in a continuous unrealized loss position for 12 consecutive months or longer. Evaluating AFS Securities for Credit Losses Gross unrealized losses on our AFS securities were $5 million at June 30, 2024. We evaluate all securities in an unrealized loss position to determine if the impairment is credit-related (resulting in an allowance for credit losses recorded in earnings) or non-credit-related (resulting in an unrealized loss through other comprehensive income). At June 30, 2024, we did not intend to sell any of our AFS securities that were in an unrealized loss position, and it is more likely than not that we will not be required to sell these securities before recovery of their amortized cost basis, which may be at their maturity. We review our AFS securities that are in an unrealized loss position to identify those securities with losses based on an assessment of changes in expected cash flows for such securities, which considers recent security performance and expected future performance of the underlying collateral. At June 30, 2024, our current expected credit loss ("CECL") allowance related to our AFS securities was $1 million. AFS securities for which an allowance is recognized have experienced, or are expected to experience, adverse cash flow changes. In determining our estimate of cash flows for AFS securities we may consider factors such as structural credit enhancement, past and expected future performance of underlying mortgage loans, including timing of expected future cash flows, which are informed by prepayment rates, default rates, loss severities, delinquency rates, percentage of non-performing loans, FICO scores at loan origination, year of origination, loan-to-value ratios, and geographic concentrations, as well as general market assessments. Changes in our evaluation of these factors impacted the cash flows expected to be collected at the assessment date and were used to determine if there were credit-related adverse cash flows and if so, the amount of credit-related losses. Significant judgment is used in both our analysis of the expected cash flows for our AFS securities and any determination of security credit losses. The table below summarizes the weighted average of the significant credit quality indicators we used for the credit loss allowance on our AFS securities at June 30, 2024. Table 10.10 – Significant Credit Quality Indicators
The following table details the activity related to the allowance for credit losses for AFS securities for the three and six months ended June 30, 2024. Table 10.11 – Rollforward of Allowance for Credit Losses
Gains and losses from the sale of AFS securities are recorded as Realized gains, net, in our consolidated statements of income. During the six months ended June 30, 2024, we did not sell any AFS securities relative to the six months ended June 30, 2023, in which we realized gains of $1 million on sales of AFS securities.
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Home Equity Investments (HEI) |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity Investments (HEI) | Home Equity Investments (HEI) We invest in HEI contracts from third party originators and in the third quarter of 2023, we began to originate HEI directly. Each HEI provides the owner of such HEI the right to purchase a percentage ownership interest in an associated residential property, and the homeowner's obligations under the HEI are secured by a lien (primarily second liens) on the property created by recording a security instrument (e.g., deed of trust) with respect to the property. Our investments in HEI expose us to both home price appreciation and depreciation of the associated property. At June 30, 2024, we co-sponsored two HEI securitization entities that we consolidated in accordance with GAAP, and have elected to account for them under the CFE election. As such, market valuation changes for the securitized HEI are based on the estimated fair value of the associated ABS issued by the entity, including the interest we own, and are reported in HEI income, net on our Consolidated statements of income. The following table presents our HEI at June 30, 2024 and December 31, 2023. Table 11.1 – Home Equity Investments
The following table details our HEI activity during the three and six months ended June 30, 2024 and 2023. Table 11.2 – Activity of HEI
The following table provides the components of HEI income, net for the three and six months ended June 30, 2024 and 2023, and reflect net market valuation gains (losses) recorded on HEI at Redwood and on securitized HEI, net of the third party and non-controlling interests in the HEI securitizations that are not owned by Redwood. Table 11.3 – Components of HEI Income, net
(1)Amount includes interest expense associated with ABS issued, which totaled $3 million and $1 million for the three and six months ended June 30, 2024 and 2023, respectively. The following tables summarizes the characteristics of our HEI at June 30, 2024 and December 31, 2023. Table 11.4 – HEI Characteristics
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Other Investments |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Investments | Other Investments Other investments at June 30, 2024 and December 31, 2023 are summarized in the following table. Table 12.1 – Components of Other Investments
Servicer advance investments We and a third-party co-investor, through two partnerships (“SA Buyers”) consolidated by us, purchased the outstanding servicer advances and excess MSRs related to portfolios of residential mortgage-backed securitizations serviced by the co-investor. Refer to Note 11 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 for additional information regarding the transactions. We account for our servicer advance investments at fair value. At June 30, 2024, our servicer advance investments had a fair value of $227 million and were associated with specified pools of residential mortgage loans with an unpaid principal balance of $9.64 billion. The outstanding servicer advance receivables associated with these investments were $176 million at June 30, 2024, which were financed with short-term, non-recourse securitization debt. See Note 17 for additional detail on this debt. The servicer advance receivables were comprised of the following types of advances at June 30, 2024 and December 31, 2023. Table 12.2 – Components of Servicer Advance Receivables
During the six months ended June 30, 2024, we received $9 million in repayments on our servicer advance investments. During the three and six months ended June 30, 2024 we recorded $5 million and $10 million of interest income, respectively, through Other interest income, and recorded net market valuation gains of $12 million and $11 million, respectively, through Investment fair value changes, net in our consolidated statements of income. Excess MSRs In association with our servicer advance investments described above, we (through our consolidated SA Buyers) invested in excess MSRs associated with the same portfolio of residential mortgage-backed securitizations. Additionally, we own excess MSRs associated with specified pools of multifamily loans. We account for our excess MSRs at fair value and during the three and six months ended June 30, 2024, we recognized $3 million and $7 million, respectively, of interest income through Other interest income and we recorded net market valuation losses of $1 million and $3 million, respectively, through Investment fair value changes, net on our consolidated statements of income. Mortgage Servicing Rights We invest in mortgage servicing rights associated with residential mortgage loans and contract with licensed sub-servicers to perform all servicing functions for these loans. The majority of our investments in MSRs were made through the retention of servicing rights associated with the residential jumbo mortgage loans that we acquired and subsequently sold to third parties or to unconsolidated Sequoia securitization entities. During the three and six months ended June 30, 2024, we retained MSRs associated with loans with an aggregate principal balance of $1 million and $10 million from sales of residential loans to third parties. We hold our MSR investments at our taxable REIT subsidiaries. We account for our MSRs at fair value. At June 30, 2024 and December 31, 2023, our MSRs had a fair value of $29 million and $25 million, respectively, and were associated with loans with an aggregate principal balance of $1.95 billion and $2.03 billion, respectively. During the three and six months ended June 30, 2024, including net market valuation gains and losses on our MSRs, we recorded net income related to our MSRs of $4 million and $8 million, respectively, through Other income on our consolidated statements of income. Strategic Investments Strategic investments represent investments we made in companies either through our RWT Horizons venture investment platform or separately at a corporate level. At June 30, 2024, we had made a total of 39 investments in companies through RWT Horizons with a total carrying value of $22 million, as well as eight corporate-level investments with a total carrying value of $37 million. For both the three and six months ended June 30, 2024, we recognized net market valuation losses of $1 million on our strategic investments through Investment fair value changes, net in our consolidated statements of income. In the second quarter of 2023, we established a joint venture with Oaktree Capital Management to invest in residential investor bridge loans originated by our CoreVest subsidiary. At June 30, 2024, the carrying value of our investment in the joint venture was $6 million. We account for our investment in the joint venture under the equity method of accounting as we have a 20% non-controlling interest, but are deemed to be able to exert significant influence over the affairs of the joint venture. We adjust the carrying value of our equity method investment for our share of earnings or losses, dividends or return of capital on a quarterly basis. For both the three and six months ended June 30, 2024, we recognized net equity method earnings of $0.2 million and $0.3 million, respectively, through Other income, net in our consolidated statements of income. In the first quarter of 2024, we established a joint venture with CPP Investments to invest in residential investor bridge and term loans originated by us. In June 2024, we made an investment in the joint venture of $1 million. We account for our investment in the joint venture under the equity method of accounting as we have a minority non-controlling interest approximating 20% across both Redwood's direct equity capital contribution to joint venture entities and joint venture co-investments to be held in Redwood's investment portfolio, but we are deemed to be able to exert significant influence over the affairs of the joint venture. We adjust the carrying value of our equity method investment for our share of earnings or losses, dividends or return of capital on a quarterly basis. See Note 8 for further information on residential bridge loans sold to these joint ventures.
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Derivative Financial Instruments |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments The following table presents the fair value and notional amount of our derivative financial instruments at June 30, 2024 and December 31, 2023. Table 13.1 – Fair Value and Notional Amount of Derivative Financial Instruments
Risk Management Derivatives To manage, to varying degrees, risks associated with certain assets and liabilities on our consolidated balance sheets, we may enter into derivative contracts. At June 30, 2024, we were party to interest rate swaptions with an absolute aggregate notional amount of $3.08 billion, TBA agreements with an absolute aggregate notional amount of $1.04 billion, and interest rate futures contracts with an absolute aggregate notional amount of $427 million. At December 31, 2023, we were party to interest rate swaps with an absolute aggregate notional amount of $50 million, futures with an absolute aggregate notional amount of $142 million and TBA agreements with an absolute aggregate notional amount of $1.79 billion. For the three and six months ended June 30, 2024, risk management derivatives had net market valuation losses of $10 million and gains of $0.1 million, respectively. These market valuation gains and losses are recorded in Mortgage banking activities, net and Investment fair value changes, net on our consolidated statements of income. Loan Purchase and Interest Rate Lock Commitments Loan purchase commitments ("LPCs") and interest rate lock commitments ("IRLCs") that qualify as derivatives are recorded at their estimated fair values. For the three and six months ended June 30, 2024, LPCs and IRLCs had net market valuation gains of $8 million and $2 million, respectively, which were recorded in Mortgage banking activities, net on our consolidated statements of income. For both the three and six months ended June 30, 2023, LPCs had net market valuation gains of $2 million, which were recorded in Mortgage banking activities, net on our consolidated statements of income. Derivatives Designated as Cash Flow Hedges For interest rate agreements previously designated as cash flow hedges, our total unrealized loss reported in Accumulated other comprehensive loss was $66 million and $68 million at June 30, 2024 and December 31, 2023, respectively. We are amortizing this loss into interest expense over the remaining term of our trust preferred securities and subordinated notes. For both of the three and six months ended June 30, 2024 and 2023, we reclassified $1 million and $2 million, respectively, of realized net losses from Accumulated other comprehensive loss into Interest expense. As of June 30, 2024, we expect to amortize $4 million of realized losses related to terminated cash flow hedges into interest expense over the next twelve months. Derivative Counterparty Credit Risk As discussed in our Annual Report on Form 10-K for the year ended December 31, 2023, we consider counterparty risk as part of our fair value assessments of all derivative financial instruments at each quarter-end. At June 30, 2024, we assessed this risk as remote and did not record an associated specific valuation adjustment. At June 30, 2024, we were in compliance with our derivative counterparty ISDA agreements. Balance Sheet Netting Certain of our derivatives and debt obligations are subject to master netting arrangements or similar agreements. Under GAAP, in certain circumstances we may elect to present certain financial assets, liabilities and related collateral subject to master netting arrangements in a net position on our balance sheets. However, we do not elect to report any of these financial assets or liabilities on a net basis, and instead present them on a gross basis on our consolidated balance sheets. The following table presents financial assets and liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with the corresponding financial instruments and corresponding collateral received or pledged at June 30, 2024 and December 31, 2023. Table 13.2 – Offsetting of Financial Assets, Liabilities, and Collateral
(1)Amounts presented in these columns are limited in total to the net amount of assets or liabilities presented in the prior column by instrument. In certain cases, we have pledged excess cash collateral or financial assets to a counterparty (which, in certain circumstances, may be a clearinghouse) that exceed the financial liabilities subject to a master netting arrangement or similar agreement. Additionally, in certain cases, counterparties may have pledged excess cash collateral to us that exceeds our corresponding financial assets. In each case, these excess amounts are excluded from the table; they are separately reported in our consolidated balance sheets as assets or liabilities, respectively. (2)Interest rate agreements, TBAs and futures are components of derivative instruments on our consolidated balance sheets. Loan warehouse debt, which is secured by certain Residential consumer and Residential investor loans, is a component of Debt obligations on our consolidated balance sheets. For each category of financial instrument set forth in the table above, the assets and liabilities resulting from individual transactions within that category between us and a counterparty are subject to a master netting arrangement or similar agreement with that counterparty that provides for individual transactions to be aggregated and treated as a single transaction. For certain categories of these instruments, our transactions generally are cleared and settled through one or more clearinghouses that are substituted as our counterparty. References herein to master netting arrangements or similar agreements include the arrangements and agreements governing the clearing and settlement of these transactions through the clearinghouses. In the event of the termination and close-out of any of those transactions, the corresponding master netting agreement or similar agreement provides for settlement on a net basis. Any such settlement would include the proceeds of the liquidation of any corresponding collateral, subject to certain limitations on termination, settlement, and liquidation of collateral that may apply in the event of the bankruptcy or insolvency of a party. Such limitations should not inhibit the eventual practical realization of the principal benefits of those transactions or the corresponding master netting arrangement or similar agreement and any corresponding collateral.
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Other Assets and Liabilities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets and Liabilities | Other Assets and Liabilities Other Assets Other assets at June 30, 2024 and December 31, 2023 are summarized in the following table. Table 14.1 – Components of Other Assets
(1)Fixed assets and leasehold improvements had a basis of $18 million and accumulated depreciation of $11 million at June 30, 2024. REO The Company holds REO at the lower of the current carrying amount or fair value less estimated selling costs. The following table summarizes the activity and carrying values of REO assets held at Redwood and at consolidated Sequoia, Freddie Mac SLST, and CAFL entities during the six months ended June 30, 2024. Table 14.2 – REO Activity
(1)Includes REO held at Redwood and within consolidated CAFL Bridge securitization entities. (2)For the six months ended June 30, 2024, REO market valuation adjustments and liquidations resulted in net valuation losses of $3 million, which were recorded in Investment fair value changes, net on our consolidated statements of income. The following table provides detail on the numbers of REO assets at Redwood and at consolidated Sequoia, Freddie Mac SLST, and CAFL entities at June 30, 2024 and December 31, 2023. Table 14.3 – REO Assets
Investment Receivable Investment receivable primarily consists of amounts receivable from third-party servicers related to principal and interest receivable from residential investor loans and fees receivable from servicer advance investments. Intangible Assets and Goodwill On July 1, 2022, we acquired Riverbend Funding LLC ("Riverbend"), a private mortgage lender to residential transitional and commercial real estate investors. Refer to Note 2 of our Annual Report on Form 10-K for the year ended December 31, 2023 for additional information regarding this acquisition, including purchase price allocations. Additionally, in 2019 we acquired 5 Arches and CoreVest, originators of residential investor loans. In connection with these acquisitions, we identified and recorded finite-lived intangible assets totaling $95 million. Intangible Assets are included in Other Assets on our Consolidated Balance Sheets. The table below presents the amortization period and carrying value of our intangible assets, net of accumulated amortization at June 30, 2024. Table 14.4 – Intangible Assets – Activity
All of our intangible assets are amortized on a straight-line basis. For the six months ended June 30, 2024, we recorded intangible asset amortization expense of $5 million. For the six months ended June 30, 2023, we recorded intangible asset amortization expense of $6 million. Estimated future amortization expense is summarized in the table below. Table 14.5 – Intangible Asset Amortization Expense by Year
On a quarterly basis, we evaluate our finite-lived intangible assets for impairment indicators and additionally evaluate the useful lives of our intangible assets to determine if revisions to the remaining periods of amortization are warranted. We reviewed our finite-lived intangible assets and determined that the estimated lives were appropriate and that there were no indicators of impairment at June 30, 2024. Goodwill is tested for impairment annually or more frequently if indicators of impairment exist. We have elected to make the first day of our fiscal fourth quarter as the annual impairment assessment date for goodwill. We recorded total goodwill of $23 million as a result of the total consideration exceeding the fair value of the net assets acquired from Riverbend. For reporting purposes, we included the intangible assets and goodwill from the Riverbend acquisition within our Residential Investor Mortgage Banking segment. There were no changes to the balance of goodwill during the three and six months ended June 30, 2024. The potential liability resulting from the contingent consideration arrangement with Riverbend was recorded at its acquisition-date fair value of zero as part of the total consideration for the acquisition of Riverbend. At June 30, 2024, the estimated fair value of this contingent liability was zero on our consolidated balance sheets. Our contingent consideration liability is recorded at fair value and periodic changes in the estimated fair value are recorded through Other expenses on our consolidated statements of income. During the six months ended June 30, 2024, we did not record any contingent consideration income or expense related to our acquisition of Riverbend. See Note 18 for additional information on our contingent consideration liability. Operating Lease Right-of-Use Assets and Operating Lease Liabilities See Note 18 for additional information on leases. Margin Receivable and Payable Margin receivable and payable resulted from margin calls between us and our counterparties under derivatives, master repurchase agreements, and warehouse facilities, whereby we or the counterparty posted collateral. We met all margin calls due through June 30, 2024. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities at June 30, 2024 and December 31, 2023 are summarized in the following table. Table 14.6 – Components of Accrued Expenses and Other Liabilities
(1)Bridge loan holdbacks represent amounts withheld from the initial loan proceeds and are subsequently disbursed to the borrower to be used in the construction, rehabilitation or purchase of the mortgaged property or to fund interest on the bridge loan. Legal and Repurchase Reserves See Note 18 for additional information on legal and repurchase reserves. Payable to Non-Controlling Interests Redwood and a third-party co-investor, through two partnership entities consolidated by Redwood, purchased servicer advances and excess MSRs related to a portfolio of residential mortgage loans serviced by the co-investor (see Note 12 and Note 15 for additional information on the partnership entities and associated investments). We account for the co-investor’s interests in the entities as liabilities, and at June 30, 2024, the carrying value of their interests was $25 million, representing their current economic interest in the entities. Earnings from the partnership entities are allocated to the co-investors on a proportional basis and during the three and six months ended June 30, 2024, we allocated $3 million and $4 million of income to the co-investors, respectively, recorded in Other expenses on our consolidated statements of income. Additionally, Redwood and a third-party investor co-sponsored the transfer and securitization of HEI through two HEI securitization entities. Other third-party investors contributed HEI into these securitizations through Redwood and retained subordinate beneficial interests issued by the securitization entities alongside Redwood. See Note 11 for a further discussion of the HEI securitization. We account for the co-investors' interests in the HEI securitization entities as liabilities, and at June 30, 2024, the carrying value of their interests was $72 million, representing the fair value of their economic interests in the beneficial interests issued by the HEI entities. During the three and six months ended June 30, 2024, the investors' share of earnings, net from their retained interests was $7 million and $13 million, respectively, recorded through HEI income, net on our consolidated statements of income.
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Principles of Consolidation |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation In the normal course of business, we enter into certain types of transactions with entities that are considered to be VIEs. The Company's primary involvement with VIEs has been related to its securitization transactions in which it transfers assets to securitization vehicles. We primarily securitize our acquired and originated loans, which provides a source of funding and has enabled us to transfer a certain portion of economic risk on loans or related debt securities to third parties. The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and is required to consolidate the VIE. The GAAP principles we apply require us to reassess our requirement to consolidate VIEs each quarter and therefore our determination may change based upon new facts and circumstances pertaining to each VIE. This could result in a material impact to our consolidated financial statements during subsequent reporting periods. Analysis of Consolidated VIEs We currently consolidate the assets and liabilities of variable interests in certain securitization vehicles in which we are the primary beneficiary. These include certain legacy Sequoia securitization entities issued prior to 2012, certain entities formed during and after 2012 in connection with the securitization of Redwood Select prime loans and Redwood Choice expanded-prime loans (all together referred to as "Sequoia"), entities formed in connection with the securitization of CoreVest residential investor term and bridge loans ("CAFL") and entities formed in connection with the securitization of HEI. We also consolidate the assets and liabilities of certain Freddie Mac K-series and Freddie Mac Seasoned Loans Structured Transaction ("SLST") securitizations (and re-securitization of such SLST securities) in which we have invested. Each securitization entity is independent of Redwood and of each other and the assets and liabilities are not owned by and are not legal obligations of Redwood Trust Inc. Our exposure to these entities is primarily through the financial interests we have purchased or retained, although for certain entities we are exposed to financial risks associated with our role as a sponsor or co-sponsor, servicing administrator, collateral administrator, or depositor of these entities or as a result of our having sold assets directly or indirectly to these entities. We also consolidate two Servicing Investment entities formed to invest in servicing-related assets that we determined were VIEs and for which we determined we were the primary beneficiary. At June 30, 2024, we held an 80% ownership interest in, and were responsible for the management of, each entity. See Note 12 for a further description of these entities and the investments they hold and Note 14 for additional information on the minority partner’s non-controlling interest. Additionally, we consolidated an entity that was formed to finance servicer advances that we determined was a VIE and for which we, through our control of one of the aforementioned partnerships, were the primary beneficiary. The servicer advance financing consists of non-recourse short-term securitization debt, secured by servicer advances. We consolidate the securitization entity, but the securitization entity is independent of Redwood and the assets and liabilities are not owned by and are not legal obligations of Redwood. See Note 17 for additional information on the servicer advance financing. During the fourth quarter of 2023 and the third quarter of 2021, we co-sponsored two HEI securitization transactions, and we consolidate the respective HEI securitization entities that we determined were VIEs and for which we determined we were the primary beneficiary. At June 30, 2024 and December 31, 2023, we owned a portion of the subordinate certificates issued by these entities and had certain decision-making rights for the entities. See Note 11 for a further description of these entities and the investments it holds and Note 14 for additional information on non-controlling interests in these entities. We consolidate these HEI securitization entities, but the securitization entities are independent of Redwood and the assets and liabilities are not owned by and are not legal obligations of Redwood. During the fourth quarter of 2023, we re-securitized subordinate securities we owned in our consolidated Freddie Mac SLST securitization trusts through the transfer of these financial assets to a re-securitization trust that we sponsored. We retain a subordinate investment in the re-securitization trust and maintain certain discretionary rights associated with the ownership of this investment that we determined reflected a controlling financial interest in the entity, as we have both the power to direct the activities that most significantly impact the performance of the VIE and the right to receive benefits of, and the obligation to absorb losses from, the VIE that could potentially be significant to the VIE. For certain of our consolidated VIEs, we have elected to account for the assets and liabilities of these entities as collateralized financing entities ("CFE"). A CFE is a variable interest entity that holds financial assets and issues beneficial interests in those assets, and these beneficial interests have contractual recourse only to the related assets of the CFE. Accounting guidance for CFEs allows companies to elect to measure both the financial assets and financial liabilities of a CFE using the more observable of the fair value of the financial assets or fair value of the financial liabilities. The net equity in an entity accounted for under the CFE election effectively represents the fair value of the beneficial interests we own in the entity. In addition to our consolidated VIEs for which we made the CFE election, we consolidate certain VIEs for which we did not make the CFE election and elected to account for the ABS issued by these entities at amortized cost. These include two CAFL bridge loan securitizations and the Freddie Mac SLST re-securitization. The following table presents a summary of the assets and liabilities of our consolidated VIEs. Table 15.1 – Assets and Liabilities of Consolidated VIEs
(1)The value of our investments in VIEs, as presented in this table, generally represents the fair value of the economic interests we own in VIEs (i.e., the securities or other interests we legally own in the consolidated securitizations or other VIEs). While most of our VIEs are accounted for under the CFE election (whereby the net equity in the VIE generally represents the fair value of our retained interests and associated accrued interest receivable), certain entities, including two CAFL bridge loan securitizations (included within the CAFL column), our SLST re-securitization (included within the Freddie Mac SLST column), and our Servicing Investment VIEs are not accounted for under the CFE election and their associated ABS issued are accounted for at amortized historical cost. As of June 30, 2024 and December 31, 2023, the fair value of our interests in the CAFL term loan securitizations accounted for under the CFE election were $337 million and $323 million, respectively, and the fair value of our interest in the CAFL bridge loan securitizations accounted for under the CFE election was $25 million and $22 million, respectively, with the difference from the tables above generally representing ABS issued and carried at amortized historical cost and accrued interest on our economic interests. As of June 30, 2024 and December 31, 2023, the fair value of our interests in the Freddie Mac SLST securitizations accounted for under the CFE election were $258 million and $274 million, respectively, with the difference from the tables above representing ABS issued and carried at amortized historical cost. The following tables present income (loss) from these VIEs for the three and six months ended June 30, 2024 and 2023. Table 15.2 – Income (Loss) from Consolidated VIEs
Analysis of Unconsolidated VIEs with Continuing Involvement Since 2012, we have transferred residential consumer loans to 46 Sequoia securitization entities sponsored by us that are still outstanding as of June 30, 2024, and accounted for these transfers as sales for financial reporting purposes, in accordance with GAAP. We also determined we were not the primary beneficiary of these VIEs as we lacked the power to direct the activities that will have the most significant economic impact on the entities. For certain of these transfers to securitization entities, for the transferred loans where we held the servicing rights prior to the transfer and continued to hold the servicing rights following the transfer, we recorded mortgage servicing rights ("MSRs") on our consolidated balance sheets and classified those MSRs as Level 3 assets. We also retained senior and subordinate securities in these securitizations that we classified as Level 3 assets. Our continuing involvement in these securitizations is limited to customary servicing obligations associated with retaining servicing rights (which we retain a third-party sub-servicers to perform) and the receipt of interest income associated with the securities we retained. The following table presents additional information at June 30, 2024 and December 31, 2023, related to unconsolidated VIEs sponsored by Redwood and accounted for as sales since 2012. Table 15.3 – Unconsolidated VIEs Sponsored by Redwood
(1)Maximum loss exposure from our involvement with unconsolidated VIEs pertains to the carrying value of our securities and MSRs retained from these VIEs and represents estimated losses that would be incurred under severe, hypothetical circumstances, such as if the value of our interests and any associated collateral declines to zero. This does not include, for example, any potential exposure to representation and warranty claims associated with our initial transfer of loans into a securitization. Our assessments of whether we are required to consolidate a VIE may change in subsequent reporting periods based upon changing facts and circumstances pertaining to each VIE. Any related accounting changes could result in a material impact to our financial statements.
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Asset-Backed Securities Issued |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-Backed Securities Issued | Asset-Backed Securities Issued ABS issued represents securities issued by non-recourse securitization entities we consolidate under GAAP. The majority of our ABS issued is carried at fair value under the CFE election (see Note 15 for additional detail) with the remainder carried at amortized cost. The carrying values of ABS issued by our consolidated securitization entities at June 30, 2024 and December 31, 2023, along with other selected information, are summarized in the following table. Table 16.1 – Asset-Backed Securities Issued
(1)Includes $417 million and $485 million (principal balance) of ABS issued by two CAFL bridge securitization trusts sponsored by Redwood and accounted for at amortized cost at June 30, 2024 and December 31, 2023, respectively. (2)Includes $166 million and $182 million (principal balance) of ABS issued by a re-securitization trust sponsored by Redwood and accounted for at amortized cost at both June 30, 2024 and December 31, 2023, respectively. (3)Certain ABS issued by CAFL and HEI securitization entities are subject to early redemption and interest rate step-ups as described below. The actual maturity of each class of ABS issued is primarily determined by the rate of principal prepayments on the assets of the issuing entity. Each series is also subject to redemption prior to the stated maturity according to the terms of the respective governing documents of each ABS issuing entity. As a result, the actual maturity of ABS issued may occur earlier than the stated maturity. At June 30, 2024, the majority of the ABS issued and outstanding had contractual maturities beyond five years. See Note 15 for detail on the carrying value components of the collateral for ABS issued and outstanding. For additional information related to certain of our asset-backed securities issued that are presented above, see Note 15 to the Consolidated Financial Statements of our 2023 Annual Report on Form 10-K.
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Debt Obligations, Net |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations, Net | Debt Obligations, Net We enter into loan warehouse facilities, repurchase agreements ("repo"), recourse subordinate securities financings, and other forms of collateralized (and generally uncommitted) borrowings with several banks and major investment banking firms. Additionally, we have various forms of corporate debt to finance our investments and operations. At June 30, 2024, we had outstanding agreements on debt obligations with several counterparties and we were in compliance with all of the related covenants. The following tables summarize our debt obligations at June 30, 2024 and December 31, 2023. Table 17.1 – Debt Obligations, Net
(1)Variable rate borrowings are based on 1- or 3-month AMERIBOR or SOFR, plus an applicable spread. (2)Promissory notes payable on demand to lender with 90-day notice. (3)Borrowing has a fixed interest rate at period end. Facilities and Other Financing We use debt financing obtained through several different types of borrowing facilities to, among other things, finance the acquisition and/or origination of residential consumer and residential investor mortgage loans (including those we acquire or originate in anticipation of sale or securitization), and finance investments in securities and other investments. At June 30, 2024, Redwood and or its subsidiaries have entered into eight short-term warehouse facilities to finance our residential consumer loans, MSRs and unsecuritized HEIs totaling $1.85 billion of total capacity, and seven residential investor loan facilities totaling $2.53 billion of total capacity to finance our residential investor loans. 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. Recourse Subordinate Securities Financing Facilities At June 30, 2024, a subsidiary of Redwood had 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. The financing was 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 July 2024, this repurchase facility was refinanced into a new, non-recourse resecuritization, with a principal balance of $205 million, a blended interest rate of 8.5%, and a final stated maturity date of December 2054. The collateral for the July 2024 resecuritization includes Sequoia securities that had been financed with our recourse subordinate securities financing, Sequoia securities financed through other facilities or previously unfinanced Sequoia securities. In 2020, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable recourse debt financing of certain securities retained from our consolidated CAFL securitizations. The financing is fully and unconditionally guaranteed by Redwood, with an interest rate of approximately 4.21% through February 2023, increasing to 5.71% from March 2023 through February 2024, and to 7.21% from March 2024 through February 2025. The financing facility may be terminated at our option, beginning in February 2023, and has a final maturity in February 2025. In 2021, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable recourse debt financing of certain securities retained from our consolidated CAFL securitizations. The financing is guaranteed by Redwood, with an interest rate of approximately 4.75% through June 2024, increasing to 6.25% from July 2024 through June 2025, and to 7.75% from July 2025 to June 2026. The financing facility may be terminated at our option, beginning in June 2023, and has a final maturity in June 2026. Corporate Debt We use corporate debt obligations to fund other aspects of our business and operations, including the repurchase of shares of our capital stock. 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%. In March 2024, we entered into a corporate secured revolving financing facility with CPP Investments to provide non-marginable recourse debt financing secured by previously unencumbered assets, such as retained Residential Consumer and Residential Investor subordinate securities and other investments, as well as equity in certain operating subsidiaries. At June 30, 2024, this facility had a capacity of $250 million and a -year term, with a -year extension option. In January 2024, Redwood issued $60 million of 9.125% Senior Notes due in 2029. The Senior Notes are senior unsecured obligations of Redwood and bear interest at a rate equal to 9.125% per year, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year, beginning on June 1, 2024. The Senior Notes mature on March 1, 2029. We may redeem the Senior Notes, in whole or in part, at any time on or after March 1, 2026 at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest. In June 2024, Redwood issued $85 million of 9.0% Senior Notes due in 2029. The Senior Notes are senior unsecured obligations of Redwood and bear interest at a rate equal to 9.0% per year, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year, beginning on September 1, 2024. The Senior Notes mature on September 1, 2029. We may redeem the Senior Notes, in whole or in part, at any time on or after September 1, 2026 at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest. During the three and six months ended June 30, 2024, we repurchased $9 million and $36 million par value, respectively, of our 5.625% convertible senior notes and we repaid these notes in full in July 2024. During the six months ended June 30, 2024, we repurchased $4 million par value of our 7.75% convertible senior notes at a discount and recorded a gain on extinguishment of $0.1 million in Realized gains, net on our consolidated statements of income.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Lease Commitments At June 30, 2024, we were obligated under eight non-cancelable operating leases with expiration dates through 2031 for $14 million of cumulative lease payments. For the six-months ended June 30, 2024 and 2023, our operating lease expense was $2 million and $3 million, respectively. The following table presents our future lease commitments at June 30, 2024. Table 18.1 – Future Lease Commitments by Year
During the six months ended June 30, 2024, we did not enter into any new office leases with a lease term of greater than one year. At June 30, 2024, our operating lease liabilities were $13 million, which were a component of , and our operating lease right-of-use assets were $11 million, which were a component of . We determined that none of our leases contained an implicit interest rate and used a discount rate equal to our incremental borrowing rate on a collateralized basis to determine the present value of our total lease payments. As such, we determined the applicable discount rate for each of our leases using a swap rate plus an applicable spread for borrowing arrangements secured by our real estate loans and securities for a length of time equal to the remaining lease term on the lease commencement date. At June 30, 2024, the weighted-average remaining lease term and weighted-average discount rate for our leases was 4 years and 5.3%, respectively. Commitment to Fund Residential Investor Bridge Loans As of June 30, 2024, we had commitments to fund up to $448 million of additional advances on existing residential investor bridge loans. These commitments are generally subject to loan agreements with covenants regarding the financial performance of the borrower and other terms regarding advances that must be met before we fund the commitment. At June 30, 2024, we carried a $2 million contingent liability related to these commitments to fund construction advances. During the three and six months ended June 30, 2024, we recorded a net market valuation expense of $0.4 million of $1 million, respectively, related to this liability through Mortgage banking activities and Investment of fair value changes, net on our consolidated statements of income. Commitment to Fund Joint Ventures In the first quarter of 2024, we entered into a joint venture with CPP Investments pursuant to which we will offer to sell certain residential investor bridge and term loans we originate into joint venture entities that meet specified criteria at contractually pre-established prices. We have committed approximately $100 million of equity capital to be allocated to the joint venture entities and joint venture co-investments to be held in Redwood's investment portfolio. At June 30, 2024, we had contributed $1 million of capital to the joint venture. In the second quarter of 2023, we entered into a joint venture with Oaktree to invest in residential investor bridge loans originated by our CoreVest subsidiary. We have a commitment to contribute up to approximately $19 million to the joint venture to fund the joint venture's purchase of residential investor bridge loans, under the updated terms of the joint venture. At June 30, 2024, we had contributed $5 million of capital to the joint venture. For additional information related to our commitments and contingencies, see Note 17 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023. Loss Contingencies — Repurchase Reserves We maintain a repurchase reserve for potential obligations arising from representation and warranty violations related to residential consumer and residential investor loans we have sold to securitization trusts or third parties and for conforming residential consumer loans associated with MSRs that we have purchased from third parties. We do not originate residential consumer loans and we believe the initial risk of loss due to loan repurchases (i.e., due to a breach of representations and warranties) would generally be a contingency to the companies from whom we acquired the loans. However, in some cases, for example, where loans were acquired from companies that have since become insolvent, repurchase claims may result in our being liable for a repurchase obligation. At June 30, 2024 and December 31, 2023, our repurchase reserve associated with our residential consumer loans and MSRs was $3 million and $5 million, respectively, and was recorded in accrued expenses and other liabilities on our consolidated balance sheets. During the six months ended June 30, 2024 and 2023, we received two and one repurchase request, respectively. During the six months ended June 30, 2024 and 2023 we repurchased two and five loans, respectively. During both the six months ended June 30, 2024 and 2023, we recorded reversals of repurchase provision expenses of $1 million, in Mortgage banking activities, net, on our consolidated statements of income. At June 30, 2024 and December 31, 2023, our repurchase reserve associated with residential investor loans sold to third-parties was $0.2 million and zero, respectively, and was recorded in accrued expenses and other liabilities on our consolidated balance sheets. During the six months ended June 30, 2024 and 2023, we received ten and three repurchase requests, respectively, for residential investor loans sold to third parties, and repurchased one and twelve residential investor loans, respectively, that had been sold to third parties. At June 30, 2024, two open repurchase requests were outstanding for residential investor loans sold to third parties. Loss Contingencies — Litigation, Claims and Demands There is no significant update regarding the litigation matters described in Note 17 within the financial statements included in Redwood’s Annual Report on Form 10-K for the year ended December 31, 2023 under the heading “Loss Contingencies - Litigation, Claims and Demands.” For additional information related to our commitments and contingencies, see Note 17 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023.
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Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity The following tables provide a summary of changes to Accumulated other comprehensive income (loss) by component for three and six months ended June 30, 2024 and 2023. Table 19.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component
The following tables provide a summary of reclassifications out of Accumulated other comprehensive income (loss) for the three and six months ended June 30, 2024 and 2023. Table 19.2 – Reclassifications Out of Accumulated Other Comprehensive Loss
Issuance of Common Stock We have an established program to sell common stock from time to time in at-the-market ("ATM") offerings. During the six months ended June 30, 2024, we did not issue any shares of common stock under this program. At June 30, 2024, the remaining share issuance capacity under this program was approximately $50 million. Preferred Stock In January 2023, Redwood issued 2.8 million shares of 10.00% Series A Fixed-Rate Reset Cumulative Redeemable Preferred Stock ("Series A Preferred Stock") for gross proceeds of $70 million and net proceeds of approximately $67 million, after deducting the underwriting discount and other estimated expenses. The Series A Preferred Stock pays quarterly cumulative cash dividends through January 15, 2028 at a fixed annual rate of 10%, based on the stated liquidation preference of $25.00 per share, in arrears, when authorized by Redwood's Board of Directors and declared by the Company. Starting April 15, 2028, the annual dividend rate will reset to the five-year U.S. Treasury Rate plus a spread of 6.278%. The Series A Preferred Stock ranks senior to Redwood's common stock with respect to rights to the payment of dividends and the distribution of assets upon any liquidation, dissolution or winding up of the Company. During the three and six months ended June 30, 2024, the Company declared preferred stock dividends of $0.625 and $1.2500 per preferred share, respectively. At June 30, 2024, preferred dividends payable totaling $1 million for the second quarter 2024 dividend were included in Accrued expenses and other liabilities and were payable on July 15, 2024 to preferred stockholders of record on July 1, 2024. Direct Stock Purchase and Dividend Reinvestment Plan During the three months ended June 30, 2024, we did not not issue any shares of common stock through our Direct Stock Purchase and Dividend Reinvestment Plan. At June 30, 2024, approximately six million shares remained outstanding for future offerings under this plan. Common Stock Warrants In conjunction with establishing the joint venture with CPP Investments in March 2024, we issued warrants exercisable for 1,974,905 shares of our common stock (the “First Tranche Warrants”); and (ii) warrants exercisable for 4,608,112 shares of our common stock (the “Second Tranche Warrants” and together with the First Tranche Warrants, the “Warrants”). The First Tranche Warrants are exercisable from March 18, 2025 to March 18, 2029. The Second Tranche Warrants will vest upon achievement of specified deployment thresholds related to our joint venture with CPP Investments and, if vested, will be exercisable from the date the Second Tranche Warrants vest to March 18, 2029. The initial strike price of the Warrants is $7.76. The Warrants also contain a mandatory exercise provision, exercisable at Redwood’s option upon satisfaction of specified conditions, including the trading price of Redwood’s common stock exceeding a specified premium to the exercise price. Exercises of any Warrants will be settled on a net basis. The Warrants met the criteria for equity classification under ASC 815, Derivatives and Hedging, and are recorded as a component of Additional paid-in-capital in Equity on our Consolidated Balance Sheets. The Warrants were valued at $0.8 million on the issuance date and are not subject to subsequent remeasurement. See Note 20 for discussion on the impact of the Warrants on earnings per common share. For additional information related to our equity, see Note 18 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023.
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Earnings Per Common Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share | Earnings per Common Share The following table provides the basic and diluted earnings per common share computations for the three and six months ended June 30, 2024 and 2023. Table 20.1 – Basic and Diluted Earnings per Common Share
We included participating securities, which are certain equity awards that have non-forfeitable dividend participation rights, in the calculations of basic and diluted earnings per common share as we determined that the two-class method was more dilutive than the alternative treasury stock method for these shares. Dividends and undistributed earnings allocated to participating securities under the basic and diluted earnings per share calculations require specific shares to be included that may differ in certain circumstances. During the three and six months ended June 30, 2024 and 2023, none of our convertible notes were determined to be dilutive and were not included in the calculation of diluted EPS under the "if-converted" method. Under this method, for convertible and exchangeable notes due in 2024 and 2025, the periodic interest expense (net of applicable taxes) for dilutive notes is added back to the numerator and the weighted average number of shares that the notes are entitled to (if converted, regardless of whether they are in or out of the money) are included in the denominator. For convertible notes due in 2027, if the potential conversion of the debt is dilutive, then the number of shares needed to settle the conversion premium are added to the shares outstanding used to calculate dilutive EPS. During the three and six months ended June 30, 2024, none of our Warrants were determined to be dilutive to our calculation of dilutive earnings per common share. The warrants would have a dilutive effect on earnings per common share to the extent that the Warrants are vested and exercisable, and the market value per share of our common stock exceeds the strike price of the Warrants. For the three and six months ended June 30, 2024, 34,537,361 and 35,105,457 of common shares, respectively, related to the assumed conversion of our convertible notes, were antidilutive and were excluded in the calculation of diluted earnings per share. For the three and six months ended June 30, 2023, 44,712,499 and 45,509,857 of common shares, respectively, related to the assumed conversion of our convertible notes, were antidilutive and were excluded in the calculation of diluted earnings per share. For the three and six months ended June 30, 2024, the number of outstanding equity awards that were antidilutive totaled 20,376 and 42,537 common shares, respectively. For the three and six months ended June 30, 2023, the number of outstanding equity awards that were antidilutive totaled 27,408 and 55,882 common shares, respectively.
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Equity Compensation Plans |
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Compensation Plans | Equity Compensation Plans At June 30, 2024 and December 31, 2023, 9,414,568 and 10,211,459 shares of common stock, respectively, were available for grant under our Incentive Plan. The unamortized compensation cost of awards issued under the Incentive Plan, which are settled by delivery of shares of common stock, and purchases under the Employee Stock Purchase Plan, totaled $36 million at June 30, 2024, as shown in the following table. Table 21.1 – Activities of Equity Compensation Costs by Award Type
At June 30, 2024, the weighted average amortization period remaining for all of our equity awards was less than two years. Restricted Stock Units ("RSUs") We generally grant RSUs annually, as part of our compensation process. In addition, RSUs are granted from time to time in connection with hiring and promotions. RSUs generally vest over the course of a -year vesting period, and are distributed annually, at the end of each vesting period. At June 30, 2024 and December 31, 2023, we had 791,439 and 593,570 RSUs outstanding, respectively. During the six months ended June 30, 2024, we granted 542,719 RSUs, distributed 271,010 RSUs, and 73,840 RSUs were forfeited due to employee termination. Unvested RSUs at June 30, 2024 vest through 2028. Deferred Stock Units (“DSUs”) We generally grant DSUs annually, as part of our compensation process. In addition, DSUs are granted from time to time in connection with hiring and promotions and in lieu of the payment in cash of a portion of annual bonus earned. DSUs generally vest over the course of a -year vesting period, and are distributed after the end of the final vesting period or after an employee is terminated. At June 30, 2024 and December 31, 2023, we had 5,576,627 and 4,821,172 DSUs outstanding, respectively, of which 2,603,607 and 2,284,480, respectively, had vested. During the six months ended June 30, 2024, we granted 1,245,295 DSUs, distributed 378,125 DSUs and 111,715 DSUs were forfeited due to employee termination. Unvested DSUs at June 30, 2024 vest through 2028. Performance Stock Units (“PSUs”) We generally grant PSUs annually, as part of our compensation process. PSUs generally have performance-based vesting over the course of a -year vesting/performance period, and, subject to meeting certain performance criteria, will vest and be distributed after the end of the vesting period. At June 30, 2024 and December 31, 2023, the target number of PSUs that were unvested was 2,598,194 and 3,072,039, respectively. Vesting for PSUs generally occurs approximately three years from their respective grant dates based on various total shareholder return performance calculations, as discussed in Note 19 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023. For 473,845 target PSU awards that were granted in December 2020, the performance vesting period ended on January 1, 2024. Based upon the performance-based vesting criteria of these awards, 564,975 shares of our common stock underlying these PSUs qualified for vesting, which was approved by our Board of Directors during the six months ended June 30, 2024. These PSUs were distributed as shares of our common stock in April 2024. Employee Stock Purchase Plan ("ESPP") The ESPP allows a maximum of 1,100,000 shares of common stock to be purchased in aggregate for all employees. As of June 30, 2024 and December 31, 2023, 805,906 and 763,369 shares had been purchased, respectively, and there remained a negligible amount of uninvested employee contributions in the ESPP at June 30, 2024.
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Components of Operating Expenses |
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Components of Operating Expenses | Components of Operating Expenses Components of our general and administrative expenses, portfolio management costs, loan acquisition costs, and other expenses for the three and six months ended June 30, 2024 and 2023 are presented in the following table. Table 22.1 – Components of Operating Expenses
(1)Includes $2 million and $1 million of severance and transition-related expenses for the six months ended June 30, 2024 and 2023, respectively. (2)Includes $1 million of equity amortization expense related to employee terminations for both the six months ended June 30, 2024 and 2023. For the three months ended June 30, 2024 and 2023, long-term incentive award expense included $5 million and $4 million of expense, respectively, for awards settleable in shares of our common stock, and $2 million and $1 million of expense, respectively, for awards settleable in cash. For the six months ended June 30, 2024 and 2023, long-term incentive award expense included $11 million and $10 million of expense, respectively, for awards settleable in shares of our common stock, and $3 million and $3 million of expense, respectively, for awards settleable in cash. For additional information related to cash-settled, long-term incentive awards, see Note 22 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023.
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Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxes | Taxes For the six months ended June 30, 2024 and 2023, we recognized a provision for income taxes of $5 million and benefit from income taxes of $1 million, respectively. The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at June 30, 2024 and 2023. Table 23.1 – Reconciliation of Statutory Tax Rate to Effective Tax Rate
We assessed our tax positions for all open tax years (i.e., Federal, 2020 to 2024, and State, 2019 to 2024) at June 30, 2024 and December 31, 2023, and concluded that we had no uncertain tax positions that resulted in material unrecognized tax benefits. As of June 30, 2024, the Company has a valuation allowance of $117 million for certain state deferred tax assets, as it is more likely than not that those assets will not be realized. The Company considers all available evidence, both positive and negative, to analyze the realizability of deferred tax assets. After evaluating these sources of taxable income, and considering the jurisdiction and character of the deferred tax assets, the Company continues to recognize its federal and certain state deferred tax assets of $40 million at June 30, 2024, as it believes it is more likely than not that the net deferred tax assets will be realized.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
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Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Pay vs Performance Disclosure | ||||
Net Income | $ 15,534 | $ 2,873 | $ 45,796 | $ 7,493 |
Insider Trading Arrangements |
3 Months Ended | 6 Months Ended |
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Jun. 30, 2024
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Jun. 30, 2024
shares
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Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On May 10, 2024, Andrew P. Stone, Redwood's Executive Vice President, Chief Legal Officer and Secretary adopted a Rule 10b5-1 trading arrangement to sell between 13,500 and 14,000 shares on December 23, 2024. The actual number of shares to be sold is based on the tax withholding rate applicable to the delivery of shares in December 2024 underlying previously awarded deferred stock units and will be calculated in accordance with the formula set forth in the plan. The plan is intended to satisfy the affirmative defense of Rule 10b5-1(c).
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Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Andrew P. Stone [Member] | ||
Trading Arrangements, by Individual | ||
Name | Andrew P. Stone | |
Title | Executive Vice President, Chief Legal Officer and Secretary | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 10, 2024 | |
Andrew P. Stone, Minimum Shares [Member] | Andrew P. Stone [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 13,500 | 13,500 |
Andrew P. Stone, Maximum Shares [Member] | Andrew P. Stone [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 14,000 | 14,000 |
Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements presented herein are at June 30, 2024 and December 31, 2023, and for the three and six months ended June 30, 2024 and 2023. These interim unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in our annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") — as prescribed by the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) — have been condensed or omitted in these interim financial statements according to these SEC rules and regulations. Management believes that the disclosures included in these interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, all normal and recurring adjustments have been made to present fairly the financial condition of the Company at June 30, 2024 and results of operations for all periods presented. The results of operations for the three and six months ended June 30, 2024 should not be construed as indicative of the results to be expected for the full year. In the first quarter of 2024, we updated the names of our Residential loans to Residential consumer loans and our Business purpose loans to Residential investor loans. There were no changes to the classifications of account balances as a result of these updates. in names. All prior period references in this document were conformed to this presentation. In the second quarter of 2024, we combined the presentation of Short-term and Long-term debt within Debt obligations, net and Goodwill and Intangible assets within Other assets on the consolidated balance sheets and consolidated statements of income, as applicable. There was no impact to the consolidated financial statements as a result of this change and all prior periods in this document were conformed to this presentation.
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Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the entities where the Company has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity ("VOE") or a variable interest entity ("VIE"). A VOE is an entity that has sufficient equity and in which equity investors have a controlling financial interest. The usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. if the Company has a controlling majority voting interest in a VOE, the entity is consolidated. A VIE is an entity that lacks one or more of the characteristics of a VOE. The Company has a controlling financial interest in and consolidates a VIE when the firm has a variable interest or interests that provide it with (i) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits for the VIE that could potentially be significant to the VIE. See Note 15 for further information about VIEs. For financial reporting purposes, we consolidate the assets and liabilities of certain entities formed in connection with the securitization of our loans and home equity investments ("HEI"), which we have determined to be VIEs and in which we have a controlling financial interest. The underlying loans owned at the consolidated securitization entities are shown under Residential consumer loans and Residential investor loans, at fair value on our consolidated balance sheets. The underlying HEI at the consolidated HEI securitization entities are shown under Home equity investments, at fair value on our consolidated balance sheets. See Note 11 for further discussion on HEI. The asset-backed securities (“ABS”) issued to third parties by these entities are shown under ABS issued. In our consolidated statements of income, we record interest income on the loans owned at these entities and interest expense on the ABS issued by these entities as well as fair value changes, other income and expenses associated with these entities' activities. See Note 16 for further discussion on ABS issued. We also consolidate two partnerships ("Servicing Investment" entities) through which we have invested in servicing-related assets. We maintain an 80% ownership interest in each entity and have determined that we are the primary beneficiary of these partnerships.
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Use of Estimates | Use of Estimates The preparation of financial statements requires us to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amounts and timing of credit losses, prepayment rates, valuation allowances, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the consolidated financial statements and the reported amounts of certain revenues and expenses during the reported periods. It is likely that changes in these estimates (e.g., valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term. Our estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements Newly Adopted Accounting Standard Updates ("ASUs") In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform (Topic 848) - Deferral of the Sunset Date of Topic 848." This new guidance defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The objective of the guidance in Topic 848 is to provide temporary relief during the transition period. Through June 30, 2024, we had not elected to apply the optional expedients and exceptions to any of our existing contracts, hedging relationships, or other transactions. At June 30, 2024, we had no remaining LIBOR-indexed financial assets or liabilities. Other Recent Accounting Pronouncements Pending Adoption In August 2023, the FASB issued ASU 2023-05, "Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement." ASU 2023-05 requires a joint venture, upon formation, to initially measure its assets and liabilities at fair value. This generally aligns the treatment to be consistent with the guidance for business combinations. This new guidance is effective for all joint venture entities with a formation date on or after January 1, 2025, with early adoption permitted. Joint ventures formed prior to the adoption date may elect to apply the new guidance retrospectively back to their original formation date. We expect that this new guidance will not have a material impact on our consolidated financial statements and plan to adopt this new guidance by the required date. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. "ASU 2023-07 expands the breadth and frequency of segment disclosures by requiring disclosures of significant segment expenses regularly provided to the Chief Operating Decision Maker ("CODM") and included within the reported measures of a segment's profit or loss. Other disclosure requirements involve the amount and composition of other segment items and how the CODM uses the reported measures of profit or loss to assess segment performance and to decide how to allocate resources. The ASU does not change how a public entity identifies its operating segments, aggregates those operating segments or applies the quantitative thresholds to determine its reportable segments. This new guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We expect that this new guidance will result in additional disclosures in our consolidated financial statements and plan to adopt this new guidance by the required date. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." ASU 2023-09 improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation disclosures. Additionally, income taxes paid are required to be disaggregated by jurisdiction, along with other amendments to enhance the effectiveness of income tax disclosures. This new guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted and upon adoption, the guidance can be adopted on a prospective or retrospective basis. We expect that this new guidance will result in additional disclosures in our consolidated financial statements and plan to adopt this new guidance by the required date. In March 2024, the FASB issued ASU 2024-01, "Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards." ASU 2024-01 provides clarification for determining whether a profits interest award should be accounted for as a share-based payment arrangement or other compensation. This new guidance is effective for annual and interim periods beginning after December 15, 2024. Early adoption is permitted and upon adoption, the guidance can be adopted on a prospective or retrospective basis. We expect that this new guidance will not have a material impact on our consolidated financial statements and plan to adopt this new guidance by the required date.
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Segment Information (Tables) |
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Schedule of Business Segment Financial Information | The following tables present financial information by segment for the three and six months ended June 30, 2024 and 2023. Table 4.1 – Business Segment Financial Information
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Schedule of Supplemental Information by Segment | The following table presents supplemental balance sheet information by segment at June 30, 2024 and December 31, 2023. Certain balance sheet accounts are not directly assigned or allocated to one of our three segments and are not reflected in the supplemental segment information provided below. Table 4.2 – Supplemental Segment Information
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Mortgage Banking Activities, Net (Tables) |
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Mortgage Banking [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Mortgage Banking Activities | The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income for the three and six months ended June 30, 2024 and 2023. Table 5.1 – Mortgage Banking Activities
(1)Includes changes in fair value for associated loan purchase commitments for residential consumer loans,. (2)For the three and six months ended June 30, 2024 and 2023, this represents the fair value changes on trading securities being used as hedges to manage the mark-to-market risks associated with our Residential Consumer Mortgage Banking operations. (3)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations and other derivative financial instruments such as loan purchase commitments and interest rate locks. (4)Amounts in this line item include other fee income from loan acquisitions, and provisions for repurchases, presented net. (5)Amounts in this line item include other fee income from loan originations.
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Fair Value of Financial Instruments (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the assets and liabilities that are reported at fair value on our consolidated balance sheets on a recurring basis at June 30, 2024 and December 31, 2023, as well as the fair value hierarchy of the valuation inputs used to measure fair value. Table 6.1 – Assets and Liabilities Measured at Fair Value on a Recurring Basis
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Schedule of Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the six months ended June 30, 2024. Table 6.2 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis
(1) Other settlements, net: for residential consumer and residential investor loans, represents the transfer of loans to REO; for derivatives, represents the transfer of the fair value of loan purchase and interest rate lock commitments at the time loans are acquired to the basis of residential consumer and residential investor loans; and for mortgage servicing rights ("MSRs) and other investments, primarily represents an investment that was exchanged into a new instrument that is no longer measured at fair value on a recurring basis. (2) For the purpose of this presentation, derivative assets and liabilities, which consist of loan purchase commitments, are presented on a net basis.
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Schedule of Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held and Included in Net Income | The following table presents the portion of fair value gains or losses included in our consolidated statements of income that were attributable to Level 3 assets and liabilities recorded at fair value on a recurring basis and held at June 30, 2024 and 2023. Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the three and six months ended June 30, 2024 and 2023 are not included in this presentation. Table 6.3 – Portion of Net Fair Value Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held at June 30, 2024 and June 30, 2023 Included in Net Income
(1) Represents the portion of net fair value gains or losses included in our consolidated statements of income related to securitized loans, securitized Home Equity Investments ("HEI"), and the associated ABS issued at our consolidated securitization entities held at June 30, 2024 and June 30, 2023, which, netted together, represent the change in value of our investments at the consolidated VIEs under the CFE election, excluding REO.
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Schedule of Market Valuation Gains and Losses, Net | The following table presents the net market valuation gains and losses recorded in each line item of our consolidated statements of income for the three and six months ended June 30, 2024 and 2023. Table 6.4 – Market Valuation Gains and Losses, Net
Footnotes to Table 6.4 (1)Represents fair value changes on trading securities that are being used along with risk management derivatives to manage the market risks associated with our Residential Consumer Mortgage Banking operations. (2)Mortgage banking activities, net presented above does not include fee income from loan originations or acquisitions, provisions for repurchases, or other expenses that are components of Mortgage banking activities, net presented on our consolidated statements of income, as these amounts do not represent market valuation changes. (3)Includes changes in fair value of the residential consumer loans held-for-investment, securitized HEI, REO and the ABS issued at the entities, which, netted together, represent the change in value of our investments at the consolidated VIEs accounted for under the CFE election. (4)Other income presented above does not include net MSR fee income or provisions for repurchases of MSRs, as these amounts do not represent market valuation adjustments.
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Schedule of Quantitative Information about Significant Unobservable Inputs Used in Valuation of Level 3 Assets and Liabilities Measured at Fair Value | The following table provides quantitative information about the significant unobservable inputs used in the valuation of our Level 3 assets and liabilities measured at fair value. Table 6.5 – Fair Value Methodology for Level 3 Financial Instruments
Table 6.5 – Fair Value Methodology for Level 3 Financial Instruments (continued)
(1)The weighted average input values for all loan types are based on unpaid principal balance. The weighted average input values for all other assets and liabilities are based on relative fair value. (2)Values represent pricing inputs used in securitization pricing model. Credit spreads represent spreads to applicable swap rates unless specified otherwise. (3)The fair value of the loans and HEI held by consolidated entities is based on the fair value of the ABS issued by these entities and the securities and other investments we own in those entities, which we determined were more readily observable in accordance with accounting guidance for collateralized financing entities. At June 30, 2024, the fair value of securities we owned at the consolidated Sequoia, CAFL Term, CAFL Bridge (under CFE), Freddie Mac SLST, Freddie Mac K-Series, and HEI securitization entities was $264 million, $337 million, $25 million, $258 million, $34 million, and $41 million, respectively. CAFL Bridge only includes the one securitization entity for which we made the CFE election. (4)Represents the estimated average duration of outstanding servicer advances at a given point in time (not taking into account new advances made with respect to the pool). (5)Fair value presented in this line item for ABS issued at consolidated HEI entities does not include non-controlling interests in our HEI entities, which we account for separately as liabilities in our Consolidated Balance Sheets and carry at fair value. However, given the HEI non-controlling interests are priced using the same model and inputs, the unobservable inputs and input values provided in this section include those for the HEI non-controlling interests.
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Schedule of Carrying Values and Fair Values of Assets and Liabilities | The following table summarizes the estimated fair values presents of assets and liabilities that are not measured at fair value at June 30, 2024 and December 31, 2023. Table 6.6 – Carrying Values and Estimated Fair Values of Assets and Liabilities
(1)These liabilities are included in Accrued expenses and other liabilities on our consolidated balance sheets.
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Residential Consumer Loans (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Classifications and Carrying Value of Loans | The following table summarizes the classifications and carrying values of the residential consumer loans owned at Redwood and at the consolidated Sequoia and Freddie Mac SLST entities at June 30, 2024 and December 31, 2023. Table 7.1 – Classifications and Carrying Values of Residential Consumer Loans
Table 8.1 – Classifications and Carrying Values of Residential Investor Loans
The following table provides the activity of residential investor loans at Redwood during the three and six months ended June 30, 2024 and 2023. Table 8.2 – Activity of Residential Investor Loans at Redwood
(1)For the three and six months ended June 30, 2024 the principal balance of loans sold to third parties is net of $6 million and $21 million, respectively, related to construction draws on residential investor bridge loans sold to our joint ventures. See Note 12 for additional information on these joint ventures. (2)For residential investor term at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL term securitizations. For residential investor bridge at Redwood, represents the transfer of residential investor bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their inclusion in one of our bridge loan securitizations, which generally have replenishment features. (3)Represents net market valuation changes from the time a loan is originated to when it is sold, securitized or transferred to our investment portfolio. See Table 5.1 for additional detail on Mortgage banking activities income (loss). The following table provides the activity of residential investor loans held-for-investment at CAFL during the three and six months ended June 30, 2024 and 2023. Table 8.3 – Activity of Residential Investor Loans Held-for-Investment at CAFL
(1)Net market valuation gains (losses) on residential investor loans held-for-investment at CAFL are recorded through Investment fair value changes, net on our consolidated statements of income. For loans held at our consolidated CAFL Term entities and one CAFL Bridge 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 associated with our economic investment in these securitization entities is presented in Tables 15.1 and 15.2. We did not elect to account for two of our CAFL Bridge securitizations under the collateralized financing entity guidelines but have elected to account for the loans in these securitizations at fair value, and changes in fair value for these loans are recorded through Investment fair value changes, net on our consolidated statements of income. The following tables summarize the characteristics of the residential investor loans owned at Redwood and at consolidated CAFL entities at June 30, 2024 and December 31, 2023. Table 8.4 – Characteristics of Residential Investor Loans
(1)The fair value of the loans held by consolidated CAFL Term entities and one CAFL Bridge entity were 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 the accounting guidance for collateralized financing entities. (2)The number of loans 90+ days delinquent includes loans in foreclosure. (3)May include loans that are less than 90 days delinquent. The following table presents the unpaid principal balance of business purpose loans recorded on our consolidated balance sheets at June 30, 2024 by collateral/strategy type. Table 8.5 – Residential Investor Loans Collateral/Strategy Type
(1)The fair value of the loans held by consolidated CAFL Term entities and one CAFL Bridge entity were 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 GAAP for collateralized financing entities. (2) Includes loans to finance acquisition and/or stabilization of existing housing stock or to finance new construction of residential properties for rent. (3) Includes loans for light to moderate renovation of residential and small multifamily properties (generally less than 20 units). (4) Includes loans for predominantly light to moderate rehabilitation projects on multifamily properties.
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Schedule of Characteristics of Residential Consumer Loans Held-For-Sale | The following table summarizes the characteristics of residential consumer loans held-for-sale at June 30, 2024 and December 31, 2023. Table 7.2 – Characteristics of Residential Consumer Loans Held-for-Sale
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Schedule of Quarterly Activity of Residential Consumer Loans Held-for-Sale | The following table provides the activity of residential consumer loans held-for-sale during the three and six months ended June 30, 2024 and 2023. Table 7.3 – Activity of Residential Consumer Loans Held-for-Sale
(1)Net market valuation gains (losses) on residential consumer loans held-for-sale are recorded primarily through Mortgage banking activities, net on our consolidated statements of income.
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Schedule of Characteristics of Residential Consumer Loans Held-for-Investment | The following tables summarize the characteristics of the residential consumer loans owned at consolidated Sequoia and Freddie Mac SLST entities at June 30, 2024 and December 31, 2023. Table 7.4 – Characteristics of Residential Consumer Loans Held-for-Investment
(1)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 the accounting guidance for collateralized financing entities. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 17.2. (2)For loans held at consolidated entities, the number and unpaid principal balance of loans 90+ days delinquent includes loans in foreclosure.
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Schedule of Quarterly Activity of Residential Consumer Loans Held-for-Investment | The following table provides the activity of residential consumer loans held-for-investment at consolidated entities during the three and six months ended June 30, 2024 and 2023. Table 7.5 – Activity of Residential Consumer Loans Held-for-Investment at Consolidated Entities
(1)Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations.
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Residential Investor Loans (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Classifications and Carrying Value of Loans | The following table summarizes the classifications and carrying values of the residential consumer loans owned at Redwood and at the consolidated Sequoia and Freddie Mac SLST entities at June 30, 2024 and December 31, 2023. Table 7.1 – Classifications and Carrying Values of Residential Consumer Loans
Table 8.1 – Classifications and Carrying Values of Residential Investor Loans
The following table provides the activity of residential investor loans at Redwood during the three and six months ended June 30, 2024 and 2023. Table 8.2 – Activity of Residential Investor Loans at Redwood
(1)For the three and six months ended June 30, 2024 the principal balance of loans sold to third parties is net of $6 million and $21 million, respectively, related to construction draws on residential investor bridge loans sold to our joint ventures. See Note 12 for additional information on these joint ventures. (2)For residential investor term at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL term securitizations. For residential investor bridge at Redwood, represents the transfer of residential investor bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their inclusion in one of our bridge loan securitizations, which generally have replenishment features. (3)Represents net market valuation changes from the time a loan is originated to when it is sold, securitized or transferred to our investment portfolio. See Table 5.1 for additional detail on Mortgage banking activities income (loss). The following table provides the activity of residential investor loans held-for-investment at CAFL during the three and six months ended June 30, 2024 and 2023. Table 8.3 – Activity of Residential Investor Loans Held-for-Investment at CAFL
(1)Net market valuation gains (losses) on residential investor loans held-for-investment at CAFL are recorded through Investment fair value changes, net on our consolidated statements of income. For loans held at our consolidated CAFL Term entities and one CAFL Bridge 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 associated with our economic investment in these securitization entities is presented in Tables 15.1 and 15.2. We did not elect to account for two of our CAFL Bridge securitizations under the collateralized financing entity guidelines but have elected to account for the loans in these securitizations at fair value, and changes in fair value for these loans are recorded through Investment fair value changes, net on our consolidated statements of income. The following tables summarize the characteristics of the residential investor loans owned at Redwood and at consolidated CAFL entities at June 30, 2024 and December 31, 2023. Table 8.4 – Characteristics of Residential Investor Loans
(1)The fair value of the loans held by consolidated CAFL Term entities and one CAFL Bridge entity were 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 the accounting guidance for collateralized financing entities. (2)The number of loans 90+ days delinquent includes loans in foreclosure. (3)May include loans that are less than 90 days delinquent. The following table presents the unpaid principal balance of business purpose loans recorded on our consolidated balance sheets at June 30, 2024 by collateral/strategy type. Table 8.5 – Residential Investor Loans Collateral/Strategy Type
(1)The fair value of the loans held by consolidated CAFL Term entities and one CAFL Bridge entity were 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 GAAP for collateralized financing entities. (2) Includes loans to finance acquisition and/or stabilization of existing housing stock or to finance new construction of residential properties for rent. (3) Includes loans for light to moderate renovation of residential and small multifamily properties (generally less than 20 units). (4) Includes loans for predominantly light to moderate rehabilitation projects on multifamily properties.
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Consolidated Agency Multifamily Loans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Multifamily Loans | The following table summarizes the characteristics of the multifamily loans consolidated at Redwood at June 30, 2024 and December 31, 2023. Table 9.1 – Characteristics of Consolidated Agency Multifamily Loans
The outstanding Consolidated Agency multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at June 30, 2024 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 three and six months ended June 30, 2024 and 2023. Table 9.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment
(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. 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 15.2.
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Real Estate Securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Values of Real Estate Securities by Type | The following table presents the fair values of our real estate securities by type at June 30, 2024 and December 31, 2023. Table 10.1 – Fair Value of Real Estate Securities by Type
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Schedule of Trading Securities by Position and Collateral Type | The following table presents the fair value of trading securities by position and collateral type at June 30, 2024 and December 31, 2023. Table 10.2 – Fair Value of Trading Securities by Position
(1)Includes $32 million and $28 million of Sequoia certificated mortgage servicing rights at June 30, 2024 and December 31, 2023, respectively. The following table presents the unpaid principal balance of trading securities by position and collateral type at June 30, 2024 and December 31, 2023. Table 10.3 – Unpaid Principal Balance of Trading Securities by Position
(1)Our senior trading securities are comprised of interest-only securities, for which there is no principal balance. The following table provides the activity of trading securities during the three and six months ended June 30, 2024 and 2023. Table 10.4 – Trading Securities Activity
(1)Net market valuation gains (losses) on trading securities are recorded through Investment fair value changes, net and Mortgage banking activities, net on our consolidated statements of income.
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Schedule of Available-for-Sale Securities by Position and Collateral Type | The following table presents the fair value of our available-for-sale ("AFS") securities by position and collateral type at June 30, 2024 and December 31, 2023. Table 10.5 – Fair Value of Available-for-Sale Securities by Position
The following table provides the activity of available-for-sale securities during the three and six months ended June 30, 2024 and 2023. Table 10.6 – Available-for-Sale Securities Activity
(1)Net unrealized gains (losses) on AFS securities are recorded on our consolidated balance sheets through Accumulated other comprehensive loss.
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Schedule of Carrying Value of Residential Available for Sale Securities | The following table presents the components of carrying value (which equals fair value) of AFS securities at June 30, 2024 and December 31, 2023. Table 10.7 – Carrying Value of AFS Securities
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Schedule of Changes of Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities | The following table presents the changes for the three and six months ended June 30, 2024, in unamortized discount and designated credit reserves on residential AFS securities. Table 10.8 – Changes in Unamortized Discount and Designated Credit Reserves on AFS Securities
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Schedule of Components of Fair Value of Available for Sale Securities by Holding Periods | The following table presents the total carrying value (fair value) and unrealized losses of residential AFS securities that were in a gross unrealized loss position at June 30, 2024 and December 31, 2023. Table 10.9 – AFS Securities in Gross Unrealized Loss Position by Holding Periods
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Schedule of Significant Valuation Assumptions for Available for Sale Securities Credit Loss | The table below summarizes the weighted average of the significant credit quality indicators we used for the credit loss allowance on our AFS securities at June 30, 2024. Table 10.10 – Significant Credit Quality Indicators
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Schedule of Activity of Allowance for Credit Losses for Available-for-sale Securities | The following table details the activity related to the allowance for credit losses for AFS securities for the three and six months ended June 30, 2024. Table 10.11 – Rollforward of Allowance for Credit Losses
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Home Equity Investments (HEI) (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Home Equity Investments | The following table presents our HEI at June 30, 2024 and December 31, 2023. Table 11.1 – Home Equity Investments
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Schedule Of Activity of Home Equity Investments | The following table details our HEI activity during the three and six months ended June 30, 2024 and 2023. Table 11.2 – Activity of HEI
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Schedule Of HEI Characteristics | The following table provides the components of HEI income, net for the three and six months ended June 30, 2024 and 2023, and reflect net market valuation gains (losses) recorded on HEI at Redwood and on securitized HEI, net of the third party and non-controlling interests in the HEI securitizations that are not owned by Redwood. Table 11.3 – Components of HEI Income, net
(1)Amount includes interest expense associated with ABS issued, which totaled $3 million and $1 million for the three and six months ended June 30, 2024 and 2023, respectively. The following tables summarizes the characteristics of our HEI at June 30, 2024 and December 31, 2023. Table 11.4 – HEI Characteristics
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Other Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Investments | Other investments at June 30, 2024 and December 31, 2023 are summarized in the following table. Table 12.1 – Components of Other Investments
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Schedule of Components of Servicer Advance Investments | Table 12.2 – Components of Servicer Advance Receivables
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Derivative Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value and Notional Amount of Derivative Financial Instruments | The following table presents the fair value and notional amount of our derivative financial instruments at June 30, 2024 and December 31, 2023. Table 13.1 – Fair Value and Notional Amount of Derivative Financial Instruments
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Schedule of Offsetting of Financial Assets, Liabilities, and Collateral | The following table presents financial assets and liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with the corresponding financial instruments and corresponding collateral received or pledged at June 30, 2024 and December 31, 2023. Table 13.2 – Offsetting of Financial Assets, Liabilities, and Collateral
(1)Amounts presented in these columns are limited in total to the net amount of assets or liabilities presented in the prior column by instrument. In certain cases, we have pledged excess cash collateral or financial assets to a counterparty (which, in certain circumstances, may be a clearinghouse) that exceed the financial liabilities subject to a master netting arrangement or similar agreement. Additionally, in certain cases, counterparties may have pledged excess cash collateral to us that exceeds our corresponding financial assets. In each case, these excess amounts are excluded from the table; they are separately reported in our consolidated balance sheets as assets or liabilities, respectively. (2)Interest rate agreements, TBAs and futures are components of derivative instruments on our consolidated balance sheets. Loan warehouse debt, which is secured by certain Residential consumer and Residential investor loans, is a component of Debt obligations on our consolidated balance sheets.
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Other Assets and Liabilities (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Other Assets | Other assets at June 30, 2024 and December 31, 2023 are summarized in the following table. Table 14.1 – Components of Other Assets
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Schedule of Activity and Carrying Values of REO Assets | The following table summarizes the activity and carrying values of REO assets held at Redwood and at consolidated Sequoia, Freddie Mac SLST, and CAFL entities during the six months ended June 30, 2024. Table 14.2 – REO Activity
(1)Includes REO held at Redwood and within consolidated CAFL Bridge securitization entities. (2)For the six months ended June 30, 2024, REO market valuation adjustments and liquidations resulted in net valuation losses of $3 million, which were recorded in Investment fair value changes, net on our consolidated statements of income. The following table provides detail on the numbers of REO assets at Redwood and at consolidated Sequoia, Freddie Mac SLST, and CAFL entities at June 30, 2024 and December 31, 2023. Table 14.3 – REO Assets
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Schedule of Amortization Period and Carrying Value of Intangible Assets, Net of Accumulated Amortization | The table below presents the amortization period and carrying value of our intangible assets, net of accumulated amortization at June 30, 2024. Table 14.4 – Intangible Assets – Activity
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Schedule of Estimated Future Amortization Expense | Estimated future amortization expense is summarized in the table below. Table 14.5 – Intangible Asset Amortization Expense by Year
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Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities at June 30, 2024 and December 31, 2023 are summarized in the following table. Table 14.6 – Components of Accrued Expenses and Other Liabilities
(1)Bridge loan holdbacks represent amounts withheld from the initial loan proceeds and are subsequently disbursed to the borrower to be used in the construction, rehabilitation or purchase of the mortgaged property or to fund interest on the bridge loan.
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Principles of Consolidation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Consolidated VIEs | The following table presents a summary of the assets and liabilities of our consolidated VIEs. Table 15.1 – Assets and Liabilities of Consolidated VIEs
(1)The value of our investments in VIEs, as presented in this table, generally represents the fair value of the economic interests we own in VIEs (i.e., the securities or other interests we legally own in the consolidated securitizations or other VIEs). While most of our VIEs are accounted for under the CFE election (whereby the net equity in the VIE generally represents the fair value of our retained interests and associated accrued interest receivable), certain entities, including two CAFL bridge loan securitizations (included within the CAFL column), our SLST re-securitization (included within the Freddie Mac SLST column), and our Servicing Investment VIEs are not accounted for under the CFE election and their associated ABS issued are accounted for at amortized historical cost. As of June 30, 2024 and December 31, 2023, the fair value of our interests in the CAFL term loan securitizations accounted for under the CFE election were $337 million and $323 million, respectively, and the fair value of our interest in the CAFL bridge loan securitizations accounted for under the CFE election was $25 million and $22 million, respectively, with the difference from the tables above generally representing ABS issued and carried at amortized historical cost and accrued interest on our economic interests. As of June 30, 2024 and December 31, 2023, the fair value of our interests in the Freddie Mac SLST securitizations accounted for under the CFE election were $258 million and $274 million, respectively, with the difference from the tables above representing ABS issued and carried at amortized historical cost. The following tables present income (loss) from these VIEs for the three and six months ended June 30, 2024 and 2023. Table 15.2 – Income (Loss) from Consolidated VIEs
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Schedule of Unconsolidated Variable Interest Entity's Sponsored by Redwood | The following table presents additional information at June 30, 2024 and December 31, 2023, related to unconsolidated VIEs sponsored by Redwood and accounted for as sales since 2012. Table 15.3 – Unconsolidated VIEs Sponsored by Redwood
(1)Maximum loss exposure from our involvement with unconsolidated VIEs pertains to the carrying value of our securities and MSRs retained from these VIEs and represents estimated losses that would be incurred under severe, hypothetical circumstances, such as if the value of our interests and any associated collateral declines to zero. This does not include, for example, any potential exposure to representation and warranty claims associated with our initial transfer of loans into a securitization.
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Asset-Backed Securities Issued (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Asset-Backed Securities Issued | The carrying values of ABS issued by our consolidated securitization entities at June 30, 2024 and December 31, 2023, along with other selected information, are summarized in the following table. Table 16.1 – Asset-Backed Securities Issued
(1)Includes $417 million and $485 million (principal balance) of ABS issued by two CAFL bridge securitization trusts sponsored by Redwood and accounted for at amortized cost at June 30, 2024 and December 31, 2023, respectively. (2)Includes $166 million and $182 million (principal balance) of ABS issued by a re-securitization trust sponsored by Redwood and accounted for at amortized cost at both June 30, 2024 and December 31, 2023, respectively. (3)Certain ABS issued by CAFL and HEI securitization entities are subject to early redemption and interest rate step-ups as described below.
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Debt Obligations, Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | The following tables summarize our debt obligations at June 30, 2024 and December 31, 2023. Table 17.1 – Debt Obligations, Net
(1)Variable rate borrowings are based on 1- or 3-month AMERIBOR or SOFR, plus an applicable spread. (2)Promissory notes payable on demand to lender with 90-day notice. (3)Borrowing has a fixed interest rate at period end.
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Commitments and Contingencies (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Lease Commitments by Year | The following table presents our future lease commitments at June 30, 2024. Table 18.1 – Future Lease Commitments by Year
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Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes to Accumulated Other Comprehensive Income by Component | The following tables provide a summary of changes to Accumulated other comprehensive income (loss) by component for three and six months ended June 30, 2024 and 2023. Table 19.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component
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Schedule of Reclassifications out of Accumulated Other Comprehensive Income | The following tables provide a summary of reclassifications out of Accumulated other comprehensive income (loss) for the three and six months ended June 30, 2024 and 2023. Table 19.2 – Reclassifications Out of Accumulated Other Comprehensive Loss
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Earnings Per Common Share (Tables) |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Earnings Per Common Share | The following table provides the basic and diluted earnings per common share computations for the three and six months ended June 30, 2024 and 2023. Table 20.1 – Basic and Diluted Earnings per Common Share
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Equity Compensation Plans (Tables) |
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Compensation Costs by Award Type | The unamortized compensation cost of awards issued under the Incentive Plan, which are settled by delivery of shares of common stock, and purchases under the Employee Stock Purchase Plan, totaled $36 million at June 30, 2024, as shown in the following table. Table 21.1 – Activities of Equity Compensation Costs by Award Type
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Components of Operating Expenses (Tables) |
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Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of General and Administrative Expenses and Other Expenses | Components of our general and administrative expenses, portfolio management costs, loan acquisition costs, and other expenses for the three and six months ended June 30, 2024 and 2023 are presented in the following table. Table 22.1 – Components of Operating Expenses
(1)Includes $2 million and $1 million of severance and transition-related expenses for the six months ended June 30, 2024 and 2023, respectively. (2)Includes $1 million of equity amortization expense related to employee terminations for both the six months ended June 30, 2024 and 2023. For the three months ended June 30, 2024 and 2023, long-term incentive award expense included $5 million and $4 million of expense, respectively, for awards settleable in shares of our common stock, and $2 million and $1 million of expense, respectively, for awards settleable in cash. For the six months ended June 30, 2024 and 2023, long-term incentive award expense included $11 million and $10 million of expense, respectively, for awards settleable in shares of our common stock, and $3 million and $3 million of expense, respectively, for awards settleable in cash.
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Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Statutory Tax Rate to Effective Tax Rate | The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at June 30, 2024 and 2023. Table 23.1 – Reconciliation of Statutory Tax Rate to Effective Tax Rate
|
Organization (Details) |
6 Months Ended |
---|---|
Jun. 30, 2024
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 3 |
Basis of Presentation (Details) - partnership |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2024 |
Dec. 31, 2018 |
|
Variable Interest Entity [Line Items] | ||
Number of partnerships consolidated | 2 | 2 |
VIEs | ||
Variable Interest Entity [Line Items] | ||
Number of partnerships consolidated | 2 | |
VIE, ownership interest rate (as a percent) | 80.00% |
Segment Information - Additional Information (Details) |
6 Months Ended |
---|---|
Jun. 30, 2024
segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment Information - Financial Information by Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Segment Reporting Information [Line Items] | ||||
Interest income | $ 225,417 | $ 178,981 | $ 430,157 | $ 357,497 |
Interest expense | (200,124) | (152,885) | (380,654) | (304,964) |
Net interest income (expense) | 25,293 | 26,096 | 49,503 | 52,533 |
Non-interest income (loss) | ||||
Mortgage banking activities, net | 18,924 | 16,552 | 33,480 | 33,223 |
Investment fair value changes, net | 1,098 | (13,517) | 22,935 | (17,909) |
HEI income, net | 15,839 | 8,921 | 24,870 | 13,186 |
Other income, net | 6,293 | 4,158 | 10,799 | 8,714 |
Realized gains, net | 0 | 1,056 | 409 | 1,054 |
Total non-interest income, net | 42,154 | 17,170 | 92,493 | 38,268 |
General and administrative expenses | (33,284) | (30,805) | (67,853) | (66,360) |
Portfolio management costs | (4,864) | (3,100) | (8,461) | (6,610) |
Loan acquisition costs | (3,664) | (1,444) | (5,901) | (2,733) |
Other expenses | (5,177) | (4,975) | (8,538) | (8,659) |
(Provision for) benefit from income taxes | (4,924) | (69) | (5,447) | 1,054 |
Net Income | 15,534 | 2,873 | 45,796 | 7,493 |
Non-cash amortization (expense), net | (5,823) | (7,568) | (14,137) | (16,465) |
Operating Segments | Residential Consumer Mortgage Banking | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 21,097 | 2,434 | 35,409 | 7,944 |
Interest expense | (9,922) | (1,700) | (18,188) | (8,566) |
Net interest income (expense) | 11,175 | 734 | 17,221 | (622) |
Non-interest income (loss) | ||||
Mortgage banking activities, net | 6,245 | 7,061 | 14,072 | 10,426 |
Investment fair value changes, net | 0 | 0 | 0 | 1,076 |
HEI income, net | 0 | 0 | 0 | 0 |
Other income, net | 0 | 0 | 0 | 0 |
Realized gains, net | 0 | 0 | 0 | 0 |
Total non-interest income, net | 6,245 | 7,061 | 14,072 | 11,502 |
General and administrative expenses | (4,957) | (3,738) | (9,746) | (8,544) |
Portfolio management costs | 0 | 0 | 0 | 0 |
Loan acquisition costs | (980) | (149) | (1,551) | (324) |
Other expenses | 0 | 0 | 0 | 0 |
(Provision for) benefit from income taxes | (1,560) | (707) | (3,054) | (74) |
Net Income | 9,923 | 3,201 | 16,942 | 1,938 |
Non-cash amortization (expense), net | (313) | (292) | (597) | (547) |
Operating Segments | Residential Investor Mortgage Banking | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 7,008 | 4,397 | 10,779 | 8,891 |
Interest expense | (5,504) | (3,673) | (8,381) | (7,711) |
Net interest income (expense) | 1,504 | 724 | 2,398 | 1,180 |
Non-interest income (loss) | ||||
Mortgage banking activities, net | 12,679 | 9,491 | 19,408 | 22,797 |
Investment fair value changes, net | 0 | 0 | 0 | 0 |
HEI income, net | 0 | 0 | 0 | 0 |
Other income, net | 1,174 | 1,076 | 1,800 | 3,484 |
Realized gains, net | 0 | 0 | 0 | 0 |
Total non-interest income, net | 13,853 | 10,567 | 21,208 | 26,281 |
General and administrative expenses | (9,677) | (11,638) | (21,102) | (25,316) |
Portfolio management costs | 0 | 0 | 0 | 0 |
Loan acquisition costs | (2,433) | (1,295) | (4,097) | (2,409) |
Other expenses | (2,203) | (3,107) | (5,008) | (6,215) |
(Provision for) benefit from income taxes | (449) | 1,406 | 1,687 | 2,109 |
Net Income | 595 | (3,343) | (4,914) | (4,370) |
Non-cash amortization (expense), net | (2,426) | (3,333) | (5,499) | (7,035) |
Operating Segments | Investment Portfolio | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 196,742 | 169,343 | 381,640 | 335,546 |
Interest expense | (166,812) | (132,514) | (322,110) | (258,470) |
Net interest income (expense) | 29,930 | 36,829 | 59,530 | 77,076 |
Non-interest income (loss) | ||||
Mortgage banking activities, net | 0 | 0 | 0 | 0 |
Investment fair value changes, net | 2,548 | (10,768) | 23,735 | (16,141) |
HEI income, net | 15,839 | 8,921 | 24,870 | 13,186 |
Other income, net | 5,120 | 4,013 | 9,945 | 6,181 |
Realized gains, net | 0 | 949 | 314 | 832 |
Total non-interest income, net | 23,507 | 3,115 | 58,864 | 4,058 |
General and administrative expenses | (641) | (1,241) | (2,816) | (2,650) |
Portfolio management costs | (4,834) | (3,087) | (8,422) | (6,597) |
Loan acquisition costs | (244) | 0 | (244) | 0 |
Other expenses | (2,974) | (1,868) | (3,530) | (2,444) |
(Provision for) benefit from income taxes | (2,914) | (1,465) | (4,060) | (1,678) |
Net Income | 41,830 | 32,283 | 99,322 | 67,765 |
Non-cash amortization (expense), net | (203) | (1,857) | (3,220) | (4,690) |
Corporate/ Other | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 570 | 2,807 | 2,329 | 5,116 |
Interest expense | (17,886) | (14,998) | (31,975) | (30,217) |
Net interest income (expense) | (17,316) | (12,191) | (29,646) | (25,101) |
Non-interest income (loss) | ||||
Mortgage banking activities, net | 0 | 0 | 0 | 0 |
Investment fair value changes, net | (1,450) | (2,749) | (800) | (2,844) |
HEI income, net | 0 | 0 | 0 | 0 |
Other income, net | (1) | (931) | (946) | (951) |
Realized gains, net | 0 | 107 | 95 | 222 |
Total non-interest income, net | (1,451) | (3,573) | (1,651) | (3,573) |
General and administrative expenses | (18,009) | (14,188) | (34,189) | (29,850) |
Portfolio management costs | (30) | (13) | (39) | (13) |
Loan acquisition costs | (7) | 0 | (9) | 0 |
Other expenses | 0 | 0 | 0 | 0 |
(Provision for) benefit from income taxes | (1) | 697 | (20) | 697 |
Net Income | (36,814) | (29,268) | (65,554) | (57,840) |
Non-cash amortization (expense), net | $ (2,881) | $ (2,086) | $ (4,821) | $ (4,193) |
Segment Information - Supplemental Information by Segment (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
||
---|---|---|---|---|
Segment Reporting Information [Line Items] | ||||
Real estate securities | [1] | $ 264,401 | $ 127,797 | |
Home equity investments | [1] | 574,119 | 550,436 | |
Other investments | [1] | 349,906 | 343,930 | |
Goodwill | 23,373 | 23,373 | ||
Intangible assets | 23,454 | 28,462 | ||
Total Assets | [1] | 16,491,104 | 14,504,327 | |
Residential consumer loans | ||||
Segment Reporting Information [Line Items] | ||||
Fair value of loans | 9,210,156 | 7,050,637 | ||
Residential investor loans | ||||
Segment Reporting Information [Line Items] | ||||
Fair value of loans | 4,879,650 | 5,220,298 | ||
Consolidated Agency multifamily loans | ||||
Segment Reporting Information [Line Items] | ||||
Fair value of loans | 421,794 | 425,285 | ||
Operating Segments | Residential Consumer Mortgage Banking | ||||
Segment Reporting Information [Line Items] | ||||
Real estate securities | 75,489 | 4,995 | ||
Home equity investments | 0 | 0 | ||
Other investments | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets | 0 | 0 | ||
Total Assets | 1,106,416 | 971,535 | ||
Operating Segments | Residential Consumer Mortgage Banking | Residential consumer loans | ||||
Segment Reporting Information [Line Items] | ||||
Fair value of loans | 962,548 | 911,192 | ||
Operating Segments | Residential Consumer Mortgage Banking | Residential investor loans | ||||
Segment Reporting Information [Line Items] | ||||
Fair value of loans | 0 | 0 | ||
Operating Segments | Residential Consumer Mortgage Banking | Consolidated Agency multifamily loans | ||||
Segment Reporting Information [Line Items] | ||||
Fair value of loans | 0 | 0 | ||
Operating Segments | Residential Investor Mortgage Banking | ||||
Segment Reporting Information [Line Items] | ||||
Real estate securities | 0 | 0 | ||
Home equity investments | 0 | 0 | ||
Other investments | 0 | 0 | ||
Goodwill | 23,373 | 23,373 | ||
Intangible assets | 23,454 | 28,462 | ||
Total Assets | 371,876 | 293,225 | ||
Operating Segments | Residential Investor Mortgage Banking | Residential consumer loans | ||||
Segment Reporting Information [Line Items] | ||||
Fair value of loans | 0 | 0 | ||
Operating Segments | Residential Investor Mortgage Banking | Residential investor loans | ||||
Segment Reporting Information [Line Items] | ||||
Fair value of loans | 259,483 | 180,250 | ||
Operating Segments | Residential Investor Mortgage Banking | Consolidated Agency multifamily loans | ||||
Segment Reporting Information [Line Items] | ||||
Fair value of loans | 0 | 0 | ||
Operating Segments | Investment Portfolio | ||||
Segment Reporting Information [Line Items] | ||||
Real estate securities | 188,912 | 122,802 | ||
Home equity investments | 573,400 | 550,323 | ||
Other investments | 290,876 | 287,822 | ||
Goodwill | 0 | 0 | ||
Intangible assets | 0 | 0 | ||
Total Assets | 14,649,885 | 12,718,201 | ||
Operating Segments | Investment Portfolio | Residential consumer loans | ||||
Segment Reporting Information [Line Items] | ||||
Fair value of loans | 8,247,608 | 5,999,706 | ||
Operating Segments | Investment Portfolio | Residential investor loans | ||||
Segment Reporting Information [Line Items] | ||||
Fair value of loans | 4,620,167 | 5,040,048 | ||
Operating Segments | Investment Portfolio | Consolidated Agency multifamily loans | ||||
Segment Reporting Information [Line Items] | ||||
Fair value of loans | 421,794 | 425,285 | ||
Corporate/ Other | ||||
Segment Reporting Information [Line Items] | ||||
Real estate securities | 0 | 0 | ||
Home equity investments | 719 | 113 | ||
Other investments | 59,030 | 56,108 | ||
Goodwill | 0 | 0 | ||
Intangible assets | 0 | 0 | ||
Total Assets | 362,927 | 521,366 | ||
Corporate/ Other | Residential consumer loans | ||||
Segment Reporting Information [Line Items] | ||||
Fair value of loans | 0 | 139,739 | ||
Corporate/ Other | Residential investor loans | ||||
Segment Reporting Information [Line Items] | ||||
Fair value of loans | 0 | 0 | ||
Corporate/ Other | Consolidated Agency multifamily loans | ||||
Segment Reporting Information [Line Items] | ||||
Fair value of loans | $ 0 | $ 0 | ||
|
Mortgage Banking Activities, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Other income, net | $ 6,293 | $ 4,158 | $ 10,799 | $ 8,714 |
Mortgage banking activities, net | 18,924 | 16,552 | 33,480 | 33,223 |
Residential Consumer Mortgage Banking Activities, Net: | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Other income, net | 1,348 | 1,334 | 1,429 | 1,315 |
Mortgage banking activities, net | 6,245 | 7,061 | 14,072 | 10,426 |
Residential Consumer Mortgage Banking Activities, Net: | Residential consumer loans, at fair value | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Changes in fair value of assets | 14,305 | 1,335 | 10,451 | 8,090 |
Residential Consumer Mortgage Banking Activities, Net: | Trading securities | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Changes in fair value of assets | 2,611 | 1,923 | 11,122 | 1,923 |
Residential Consumer Mortgage Banking Activities, Net: | Risk management derivatives | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Risk management derivatives | (12,019) | 2,469 | (8,930) | (902) |
Residential Investor Mortgage Banking Activities, Net: | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Other income, net | 5,871 | 5,369 | 9,441 | 9,952 |
Mortgage banking activities, net | 12,679 | 9,491 | 19,408 | 22,797 |
Residential Investor Mortgage Banking Activities, Net: | Residential investor term loans, at fair value | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Changes in fair value of assets | 6,068 | (1,132) | 5,772 | 11,534 |
Residential Investor Mortgage Banking Activities, Net: | Residential investor bridge loans, at fair value | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Changes in fair value of assets | (368) | 2,297 | 2,141 | 3,450 |
Residential Investor Mortgage Banking Activities, Net: | Risk management derivatives | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Risk management derivatives | $ 1,108 | $ 2,957 | $ 2,054 | $ (2,139) |
Fair Value of Financial Instruments - Additional Information (Details) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2024
USD ($)
|
|
Carrying Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other investments | $ 3,000 | $ 3,000 |
Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value option elected aggregate carrying amount, asset | 16,000 | 64,000 |
Residential Consumer Loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value option elected aggregate carrying amount, asset | 1,870,000 | 2,870,000 |
Total Residential Investor Loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value option elected aggregate carrying amount, asset | 452,000 | 779,000 |
HEIs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Acquisitions | 300 | 600 |
MSRs and Other Asset Class | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Acquisitions | $ 9 | $ 200 |
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
||
---|---|---|---|---|
Assets | ||||
Real estate securities | $ 119,624 | $ 40,424 | ||
Other investments | [1] | 349,906 | 343,930 | |
Derivative assets | [1] | 48,517 | 14,212 | |
Liabilities | ||||
Derivative liabilities | [1] | 5,954 | 33,828 | |
ABS issued | 10,975,688 | 9,151,263 | ||
Fair Value, Measurements, Recurring | ||||
Assets | ||||
Residential investor loans | 4,879,650 | 5,220,297 | ||
Consolidated Agency multifamily loans | 421,794 | 425,285 | ||
Real estate securities | 264,401 | 127,797 | ||
HEI | 574,119 | 550,436 | ||
Servicer advance investments | 227,363 | 225,345 | ||
MSRs | 28,653 | 24,877 | ||
Excess MSRs | 34,754 | 37,367 | ||
Other investments | 3,065 | 3,193 | ||
Derivative assets | 48,517 | 14,212 | ||
Liabilities | ||||
HEI securitization non-controlling interest | 72,260 | 59,752 | ||
Derivative liabilities | 5,954 | 33,828 | ||
ABS issued | 10,975,688 | 9,151,263 | ||
Fair Value, Measurements, Recurring | Level 1 | ||||
Assets | ||||
Residential investor loans | 0 | 0 | ||
Consolidated Agency multifamily loans | 0 | 0 | ||
Real estate securities | 0 | 0 | ||
HEI | 0 | 0 | ||
Servicer advance investments | 0 | 0 | ||
MSRs | 0 | 0 | ||
Excess MSRs | 0 | 0 | ||
Other investments | 0 | 0 | ||
Derivative assets | 2,235 | 952 | ||
Liabilities | ||||
HEI securitization non-controlling interest | 0 | 0 | ||
Derivative liabilities | 3,640 | 30,414 | ||
ABS issued | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | ||||
Assets | ||||
Residential investor loans | 0 | 0 | ||
Consolidated Agency multifamily loans | 0 | 0 | ||
Real estate securities | 0 | 0 | ||
HEI | 0 | 0 | ||
Servicer advance investments | 0 | 0 | ||
MSRs | 0 | 0 | ||
Excess MSRs | 0 | 0 | ||
Other investments | 0 | 0 | ||
Derivative assets | 40,298 | 1,742 | ||
Liabilities | ||||
HEI securitization non-controlling interest | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
ABS issued | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Assets | ||||
Residential investor loans | 4,879,650 | 5,220,297 | ||
Consolidated Agency multifamily loans | 421,794 | 425,285 | ||
Real estate securities | 264,401 | 127,797 | ||
HEI | 574,119 | 550,436 | ||
Servicer advance investments | 227,363 | 225,345 | ||
MSRs | 28,653 | 24,877 | ||
Excess MSRs | 34,754 | 37,367 | ||
Other investments | 3,065 | 3,193 | ||
Derivative assets | 5,984 | 11,518 | ||
Liabilities | ||||
HEI securitization non-controlling interest | 72,260 | 59,752 | ||
Derivative liabilities | 2,314 | 3,414 | ||
ABS issued | 10,975,688 | 9,151,263 | ||
Fair Value, Measurements, Recurring | Residential Consumer Loans | ||||
Assets | ||||
Residential consumer loans | 9,210,156 | 7,050,637 | ||
Fair Value, Measurements, Recurring | Residential Consumer Loans | Level 1 | ||||
Assets | ||||
Residential consumer loans | 0 | 0 | ||
Fair Value, Measurements, Recurring | Residential Consumer Loans | Level 2 | ||||
Assets | ||||
Residential consumer loans | 0 | 0 | ||
Fair Value, Measurements, Recurring | Residential Consumer Loans | Level 3 | ||||
Assets | ||||
Residential consumer loans | $ 9,210,156 | $ 7,050,637 | ||
|
Fair Value of Financial Instruments - Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2024
USD ($)
| |
HEI Securitization Non-Controlling Interest | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance - December 31, 2023 | $ 59,752 |
Acquisitions | 0 |
Sales | 0 |
Principal paydowns | 0 |
Gains (losses) in net income, net | 12,508 |
Other settlements, net | 0 |
Ending balance - June 30, 2024 | 72,260 |
ABS Issued | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance - December 31, 2023 | 9,151,263 |
Acquisitions | 2,600,015 |
Sales | (1,341) |
Principal paydowns | (648,108) |
Gains (losses) in net income, net | (126,141) |
Other settlements, net | 0 |
Ending balance - June 30, 2024 | 10,975,688 |
Residential Consumer Loans | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance - December 31, 2023 | 7,050,637 |
Acquisitions | 2,907,602 |
Originations | 0 |
Sales | (205,016) |
Principal paydowns | (441,219) |
Gains (losses) in net income, net | (100,547) |
Unrealized gains in OCI, net | 0 |
Other settlements, net | (1,301) |
Ending balance - June 30, 2024 | 9,210,156 |
Residential investor loans | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance - December 31, 2023 | 5,220,297 |
Acquisitions | 16,325 |
Originations | 755,826 |
Sales | (467,797) |
Principal paydowns | (634,224) |
Gains (losses) in net income, net | 2,305 |
Unrealized gains in OCI, net | 0 |
Other settlements, net | (13,082) |
Ending balance - June 30, 2024 | 4,879,650 |
Consolidated Agency multifamily loans | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance - December 31, 2023 | 425,285 |
Acquisitions | 0 |
Originations | 0 |
Sales | 0 |
Principal paydowns | (1,022) |
Gains (losses) in net income, net | (2,469) |
Unrealized gains in OCI, net | 0 |
Other settlements, net | 0 |
Ending balance - June 30, 2024 | 421,794 |
Trading Securities | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance - December 31, 2023 | 40,424 |
Acquisitions | 63,618 |
Originations | |
Sales | 0 |
Principal paydowns | (476) |
Gains (losses) in net income, net | 16,058 |
Unrealized gains in OCI, net | 0 |
Other settlements, net | 0 |
Ending balance - June 30, 2024 | 119,624 |
AFS Securities | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance - December 31, 2023 | 87,373 |
Acquisitions | 47,442 |
Originations | |
Sales | 0 |
Principal paydowns | (175) |
Gains (losses) in net income, net | 429 |
Unrealized gains in OCI, net | 9,708 |
Other settlements, net | 0 |
Ending balance - June 30, 2024 | 144,777 |
HEI | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance - December 31, 2023 | 550,436 |
Acquisitions | 606 |
Originations | 0 |
Sales | 0 |
Principal paydowns | (27,182) |
Gains (losses) in net income, net | 50,259 |
Unrealized gains in OCI, net | 0 |
Other settlements, net | 0 |
Ending balance - June 30, 2024 | 574,119 |
Servicer Advance Investments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance - December 31, 2023 | 225,345 |
Acquisitions | 0 |
Originations | 0 |
Sales | 0 |
Principal paydowns | (8,959) |
Gains (losses) in net income, net | 10,977 |
Unrealized gains in OCI, net | 0 |
Other settlements, net | 0 |
Ending balance - June 30, 2024 | 227,363 |
Excess MSRs | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance - December 31, 2023 | 37,367 |
Acquisitions | 0 |
Originations | 0 |
Sales | 0 |
Principal paydowns | 0 |
Gains (losses) in net income, net | (2,613) |
Unrealized gains in OCI, net | 0 |
Other settlements, net | 0 |
Ending balance - June 30, 2024 | 34,754 |
MSRs and Other Investments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance - December 31, 2023 | 28,070 |
Acquisitions | 185 |
Originations | 0 |
Sales | 0 |
Principal paydowns | (128) |
Gains (losses) in net income, net | 3,691 |
Unrealized gains in OCI, net | 0 |
Other settlements, net | (100) |
Ending balance - June 30, 2024 | 31,718 |
Derivatives | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance - December 31, 2023 | 8,104 |
Acquisitions | 0 |
Sales | 0 |
Principal paydowns | 0 |
Gains (losses) in net income, net | 1,137 |
Other settlements, net | (5,571) |
Ending balance - June 30, 2024 | $ 3,670 |
Fair Value of Financial Instruments - Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held Included in Net Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Loan purchase and interest rate lock commitments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net (loss) attributable to Level 3 liability still held included in net income | $ (2,314) | $ (1,396) | $ (2,314) | $ (1,396) |
HEI Point Entities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net gains (losses) attributable to level 3 assets still held included in net income | 4,176 | 1,251 | 7,065 | 2,445 |
Held-for-investment at fair value | Residential consumer loans at Redwood | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net gains (losses) attributable to level 3 assets still held included in net income | 3,179 | (680) | 3,103 | (466) |
Held-for-investment at fair value | Sequoia | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net gains (losses) attributable to level 3 assets still held included in net income | 2,690 | 170 | 9,600 | 2,519 |
Held-for-investment at fair value | Freddie Mac SLST | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net gains (losses) attributable to level 3 assets still held included in net income | (5,176) | (16,760) | (1,810) | (8,001) |
Residential investor loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net gains (losses) attributable to level 3 assets still held included in net income | (11,316) | (23,033) | (13,622) | (17,877) |
Consolidated Agency multifamily loans | Freddie Mac K-Series | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net gains (losses) attributable to level 3 assets still held included in net income | 452 | 385 | 695 | 748 |
Residential Investor Term | CAFL | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net gains (losses) attributable to level 3 assets still held included in net income | 7,491 | 10,707 | 17,741 | 1,897 |
Trading Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net gains (losses) attributable to level 3 assets still held included in net income | 1,582 | 1,829 | 16,087 | 3,073 |
Available-for-sale securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net gains (losses) attributable to level 3 assets still held included in net income | 514 | (71) | 1,143 | (99) |
HEI | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net gains (losses) attributable to level 3 assets still held included in net income | 5,151 | 7,676 | 11,109 | 11,053 |
Servicer Advance Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net gains (losses) attributable to level 3 assets still held included in net income | 11,611 | 3,665 | 10,977 | 2,313 |
MSRs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net gains (losses) attributable to level 3 assets still held included in net income | 1,633 | 1,692 | 4,311 | 1,278 |
Excess MSRs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net gains (losses) attributable to level 3 assets still held included in net income | (1,368) | 1,070 | (2,614) | 842 |
Loan purchase and interest rate lock commitments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net gains (losses) attributable to level 3 assets still held included in net income | $ 5,978 | $ 3,442 | $ 5,985 | $ 3,442 |
Fair Value of Financial Instruments - Market Valuation Adjustments, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Market Valuation Gains, Net | $ 29,839 | $ 6,324 | $ 73,859 | $ 17,594 |
Mortgage Banking Activities, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment, Type [Extensible Enumeration] | Total Market Valuation Gains, Net | Total Market Valuation Gains, Net | Total Market Valuation Gains, Net | Total Market Valuation Gains, Net |
Investment Fair Value Changes, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | $ 1,098 | $ (13,517) | $ 22,935 | $ (17,909) |
HEI income, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 15,839 | 8,921 | 24,870 | 13,186 |
Other Income | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage servicing rights income (loss), net | 1,196 | 1,071 | 3,443 | 361 |
Residential consumer loans held-for-sale | Mortgage Banking Activities, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 6,535 | (1,085) | 9,032 | 5,909 |
Residential consumer loan purchase commitments | Mortgage Banking Activities, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 7,770 | 2,420 | 1,419 | 2,181 |
Residential investor term loans held-for-sale | Mortgage Banking Activities, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 5,957 | (1,132) | 5,661 | 11,534 |
Residential investor term loans held-for-sale | Investment Fair Value Changes, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | (337) | (13,625) | (1,337) | (13,625) |
Residential investor term loan interest rate lock commitments | Mortgage Banking Activities, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 111 | 0 | 111 | 0 |
Residential Investor Bridge | Mortgage Banking Activities, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 1,108 | 2,297 | 2,054 | 3,450 |
Trading securities | Mortgage Banking Activities, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 2,611 | 1,923 | 11,122 | 1,923 |
Trading securities | Investment Fair Value Changes, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 621 | 4,572 | 4,802 | 6,533 |
Risk management derivatives, net | Mortgage Banking Activities, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | (12,386) | 5,426 | (6,788) | (3,041) |
Risk management derivatives, net | Investment Fair Value Changes, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 2,544 | 7,679 | 6,925 | (1,025) |
Mortgage Banking Activities, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 11,706 | 9,849 | 22,611 | 21,956 |
Residential consumer loans held-for-investment, at Redwood (called Sequoia loans) | Investment Fair Value Changes, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 0 | 0 | 0 | 183 |
Residential investor bridge loans held-for-investment | Investment Fair Value Changes, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | (13,992) | (8,149) | (17,210) | (6,773) |
Servicer advance investments | Investment Fair Value Changes, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 11,611 | 3,665 | 10,977 | 2,313 |
Excess MSRs | Investment Fair Value Changes, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | (1,368) | 1,070 | (2,613) | 842 |
Sequoia | Investment Fair Value Changes, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 2,690 | 918 | 9,600 | 3,266 |
Freddie Mac SLST | Investment Fair Value Changes, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | (5,137) | (16,563) | (1,407) | (7,629) |
Freddie Mac K-Series | Investment Fair Value Changes, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 452 | 385 | 695 | 748 |
CAFL | Investment Fair Value Changes, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 7,491 | 10,707 | 17,742 | 1,897 |
Other investments | Investment Fair Value Changes, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | (3,991) | (3,359) | (6,382) | (3,794) |
Credit recoveries (losses) on AFS securities | Investment Fair Value Changes, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 514 | (71) | 1,143 | (99) |
Other | Investment Fair Value Changes, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 0 | (746) | 0 | (746) |
Other | Other Income | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage servicing rights income (loss), net | (31) | (340) | (248) | (460) |
HEI at Redwood | HEI income, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 11,663 | 8,468 | 17,806 | 12,308 |
Net investments in HEI securitization entities | HEI income, Net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of assets | 4,176 | 453 | 7,064 | 878 |
MSRs | Other Income | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage servicing rights income (loss), net | $ 1,227 | $ 1,411 | $ 3,691 | $ 821 |
Fair Value of Financial Instruments - Quantitative Information about Significant Unobservable Inputs Used in Valuation of Level 3 Assets and Liabilities Measured at Fair Value (Details) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024
USD ($)
$ / loan
securitization_entity
|
Dec. 31, 2023
USD ($)
|
|
Assets | ||
Debt Instrument, Fair Value Disclosure | $ 10,975,688 | $ 9,151,263 |
Liabilities | ||
Securitization entity | securitization_entity | 2 | |
VIEs | Collateralized Financing Entities | HEI | ||
Liabilities | ||
Fair value of securities owned | $ 41,000 | |
ABS Issued | ||
Liabilities | ||
ABS issued | $ 6,686,531 | |
ABS Issued | Prepayment rate (annual CPR) | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.02 | |
ABS Issued | Prepayment rate (annual CPR) | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.44 | |
ABS Issued | Prepayment rate (annual CPR) | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.09 | |
ABS Issued | Whole loan discount rate | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.04 | |
ABS Issued | Whole loan discount rate | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.28 | |
ABS Issued | Whole loan discount rate | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.08 | |
ABS Issued | Default rate | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0 | |
ABS Issued | Default rate | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.11 | |
ABS Issued | Default rate | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.01 | |
ABS Issued | Loss severity | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.25 | |
ABS Issued | Loss severity | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.50 | |
ABS Issued | Loss severity | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.29 | |
CAFL | ||
Liabilities | ||
ABS issued | $ 2,409,559 | |
CAFL | Prepayment rate (annual CPR) | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0 | |
CAFL | Prepayment rate (annual CPR) | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.03 | |
CAFL | Prepayment rate (annual CPR) | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.001 | |
CAFL | Whole loan discount rate | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.05 | |
CAFL | Whole loan discount rate | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.12 | |
CAFL | Whole loan discount rate | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.07 | |
CAFL | Default rate | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.03 | |
CAFL | Default rate | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.13 | |
CAFL | Default rate | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.06 | |
CAFL | Loss severity | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.25 | |
CAFL | Loss severity | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.25 | |
CAFL | Loss severity | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.25 | |
Freddie Mac SLST | ||
Liabilities | ||
ABS issued | $ 1,041,807 | |
Freddie Mac SLST | Prepayment rate (annual CPR) | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.06 | |
Freddie Mac SLST | Prepayment rate (annual CPR) | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.06 | |
Freddie Mac SLST | Prepayment rate (annual CPR) | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.06 | |
Freddie Mac SLST | Whole loan discount rate | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.05 | |
Freddie Mac SLST | Whole loan discount rate | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.10 | |
Freddie Mac SLST | Whole loan discount rate | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.06 | |
Freddie Mac SLST | Default rate | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.14 | |
Freddie Mac SLST | Default rate | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.16 | |
Freddie Mac SLST | Default rate | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.15 | |
Freddie Mac SLST | Loss severity | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.25 | |
Freddie Mac SLST | Loss severity | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.25 | |
Freddie Mac SLST | Loss severity | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.25 | |
Freddie Mac K-Series | ||
Liabilities | ||
ABS issued | $ 387,791 | |
Freddie Mac K-Series | Whole loan discount rate | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.05 | |
Freddie Mac K-Series | Whole loan discount rate | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.10 | |
Freddie Mac K-Series | Whole loan discount rate | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.06 | |
Consolidated HEI Entities | ||
Liabilities | ||
ABS issued | $ 218,203 | |
Consolidated HEI Entities | Prepayment rate (annual CPR) | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.15 | |
Consolidated HEI Entities | Prepayment rate (annual CPR) | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.15 | |
Consolidated HEI Entities | Prepayment rate (annual CPR) | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.15 | |
Consolidated HEI Entities | Whole loan discount rate | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.08 | |
Consolidated HEI Entities | Whole loan discount rate | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.12 | |
Consolidated HEI Entities | Whole loan discount rate | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.09 | |
Consolidated HEI Entities | Home price appreciation (depreciation) | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.04 | |
Consolidated HEI Entities | Home price appreciation (depreciation) | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.04 | |
Consolidated HEI Entities | Home price appreciation (depreciation) | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.04 | |
At consolidated CAFL Bridge entities | ||
Liabilities | ||
ABS issued | $ 231,797 | |
At consolidated CAFL Bridge entities | Prepayment rate (annual CPR) | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.40 | |
At consolidated CAFL Bridge entities | Prepayment rate (annual CPR) | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.40 | |
At consolidated CAFL Bridge entities | Prepayment rate (annual CPR) | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.40 | |
At consolidated CAFL Bridge entities | Whole loan discount rate | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.07 | |
At consolidated CAFL Bridge entities | Whole loan discount rate | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.14 | |
At consolidated CAFL Bridge entities | Whole loan discount rate | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.08 | |
At consolidated CAFL Bridge entities | Default rate | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0 | |
At consolidated CAFL Bridge entities | Default rate | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.05 | |
At consolidated CAFL Bridge entities | Default rate | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.03 | |
At consolidated CAFL Bridge entities | Loss severity | Minimum | ||
Liabilities | ||
ABS issued, measurement input | 0.25 | |
At consolidated CAFL Bridge entities | Loss severity | Maximum | ||
Liabilities | ||
ABS issued, measurement input | 0.25 | |
At consolidated CAFL Bridge entities | Loss severity | Weighted Average | ||
Liabilities | ||
ABS issued, measurement input | 0.25 | |
Jumbo loans | ||
Assets | ||
Debt Instrument, Fair Value Disclosure | $ 961,022 | |
Jumbo loans | Senior credit spread to TBA price | Minimum | ||
Assets | ||
Loans held-for-sale, measurement input | $ / loan | 1.13 | |
Jumbo loans | Senior credit spread to TBA price | Maximum | ||
Assets | ||
Loans held-for-sale, measurement input | $ / loan | 2.00 | |
Jumbo loans | Senior credit spread to TBA price | Weighted Average | ||
Assets | ||
Loans held-for-sale, measurement input | $ / loan | 1.21 | |
Jumbo loans | Subordinate credit spread | Minimum | ||
Assets | ||
Loans receivable, measurement input | 0.0200 | |
Jumbo loans | Subordinate credit spread | Maximum | ||
Assets | ||
Loans receivable, measurement input | 0.0650 | |
Jumbo loans | Subordinate credit spread | Weighted Average | ||
Assets | ||
Loans receivable, measurement input | 0.0276 | |
Jumbo loans | Senior credit support | Minimum | ||
Assets | ||
Loan purchase commitments, measurement input | 0.07 | |
Jumbo loans | Senior credit support | Maximum | ||
Assets | ||
Loan purchase commitments, measurement input | 0.07 | |
Jumbo loans | Senior credit support | Weighted Average | ||
Assets | ||
Loan purchase commitments, measurement input | 0.07 | |
Jumbo loans | IO discount rate | Minimum | ||
Assets | ||
Loans receivable, measurement input | 0.24 | |
Jumbo loans | IO discount rate | Maximum | ||
Assets | ||
Loans receivable, measurement input | 0.24 | |
Jumbo loans | IO discount rate | Weighted Average | ||
Assets | ||
Loans receivable, measurement input | 0.24 | |
Jumbo loans | Prepayment rate (annual CPR) | Minimum | ||
Assets | ||
Loans held-for-sale, measurement input | $ / loan | 0.15 | |
Jumbo loans | Prepayment rate (annual CPR) | Maximum | ||
Assets | ||
Loans held-for-sale, measurement input | $ / loan | 0.15 | |
Jumbo loans | Prepayment rate (annual CPR) | Weighted Average | ||
Assets | ||
Loans held-for-sale, measurement input | $ / loan | 0.15 | |
Jumbo loans committed to sell | ||
Assets | ||
Loans receivable, fair value | $ 1,526 | |
Jumbo loans committed to sell | Whole loan committed sales price | Minimum | ||
Assets | ||
Residential loans, measurement input | $ / loan | 100 | |
Jumbo loans committed to sell | Whole loan committed sales price | Maximum | ||
Assets | ||
Residential loans, measurement input | $ / loan | 103 | |
Jumbo loans committed to sell | Whole loan committed sales price | Weighted Average | ||
Assets | ||
Residential loans, measurement input | $ / loan | 101 | |
Sequoia | ||
Assets | ||
Loans receivable, fair value | $ 6,950,586 | |
Liabilities | ||
Fair value of securities owned | 264,000 | |
Freddie Mac SLST | ||
Assets | ||
Loans receivable, fair value | 1,297,022 | |
Liabilities | ||
Fair value of securities owned | 258,000 | 274,000 |
Residential investor term loans | ||
Assets | ||
Loans receivable, fair value | $ 217,761 | |
Residential investor term loans | Subordinate credit spread | Minimum | ||
Assets | ||
Loans receivable, measurement input | 0.0165 | |
Residential investor term loans | Subordinate credit spread | Maximum | ||
Assets | ||
Loans receivable, measurement input | 0.1062 | |
Residential investor term loans | Subordinate credit spread | Weighted Average | ||
Assets | ||
Loans receivable, measurement input | 0.0334 | |
Residential investor term loans | Senior credit support | Minimum | ||
Assets | ||
Loans receivable, measurement input | 0.34 | |
Residential investor term loans | Senior credit support | Maximum | ||
Assets | ||
Loans receivable, measurement input | 0.34 | |
Residential investor term loans | Senior credit support | Weighted Average | ||
Assets | ||
Loans receivable, measurement input | 0.34 | |
Residential investor term loans | Prepayment rate (annual CPR) | Minimum | ||
Assets | ||
Loans receivable, measurement input | 0 | |
Residential investor term loans | Prepayment rate (annual CPR) | Maximum | ||
Assets | ||
Loans receivable, measurement input | 0.03 | |
Residential investor term loans | Prepayment rate (annual CPR) | Weighted Average | ||
Assets | ||
Loans receivable, measurement input | 0.03 | |
Residential investor term loans | Senior credit spread | Minimum | ||
Assets | ||
Loans receivable, measurement input | 0.0130 | |
Residential investor term loans | Senior credit spread | Maximum | ||
Assets | ||
Loans receivable, measurement input | 0.0130 | |
Residential investor term loans | Senior credit spread | Weighted Average | ||
Assets | ||
Loans receivable, measurement input | 0.0130 | |
Residential investor term loans | Dollar price of non-performing loans | Minimum | ||
Assets | ||
Loans receivable, measurement input | $ / loan | 54 | |
Residential investor term loans | Dollar price of non-performing loans | Maximum | ||
Assets | ||
Loans receivable, measurement input | $ / loan | 54 | |
Residential investor term loans | Dollar price of non-performing loans | Weighted Average | ||
Assets | ||
Loans receivable, measurement input | $ / loan | 54 | |
CAFL | ||
Assets | ||
Loans receivable, fair value | $ 2,737,467 | |
Liabilities | ||
Fair value of securities owned | 337,000 | 323,000 |
BPL bridge loans held by CAFL | ||
Assets | ||
Loans receivable, fair value | $ 234,311 | |
Liabilities | ||
Securitization entity | securitization_entity | 1 | |
Residential investor bridge loans | ||
Assets | ||
Loans receivable, fair value | $ 1,690,111 | |
Residential investor bridge loans | Whole loan discount rate | Minimum | ||
Assets | ||
Loans held-for-investment, measurement input | 0.09 | |
Residential investor bridge loans | Whole loan discount rate | Maximum | ||
Assets | ||
Loans held-for-investment, measurement input | 0.11 | |
Residential investor bridge loans | Whole loan discount rate | Weighted Average | ||
Assets | ||
Loans held-for-investment, measurement input | 0.09 | |
Residential investor bridge loans | Whole loan spread | Minimum | ||
Assets | ||
Loans held-for-investment, measurement input | 0.0485 | |
Residential investor bridge loans | Whole loan spread | Maximum | ||
Assets | ||
Loans held-for-investment, measurement input | 0.0485 | |
Residential investor bridge loans | Whole loan spread | Weighted Average | ||
Assets | ||
Loans held-for-investment, measurement input | 0.0485 | |
Residential investor bridge loans | Dollar price of non-performing loans | Minimum | ||
Assets | ||
Loans held-for-investment, measurement input | $ / loan | 41 | |
Residential investor bridge loans | Dollar price of non-performing loans | Maximum | ||
Assets | ||
Loans held-for-investment, measurement input | $ / loan | 100 | |
Residential investor bridge loans | Dollar price of non-performing loans | Weighted Average | ||
Assets | ||
Loans held-for-investment, measurement input | $ / loan | 90 | |
Freddie Mac K-Series | ||
Assets | ||
Loans receivable, fair value | $ 421,794 | |
Liabilities | ||
Fair value of securities owned | 34,000 | |
Trading and AFS securities | ||
Assets | ||
Trading and AFS securities | $ 264,401 | |
Trading and AFS securities | Prepayment rate (annual CPR) | Minimum | ||
Assets | ||
Trading and AFS securities | 0 | |
Trading and AFS securities | Prepayment rate (annual CPR) | Maximum | ||
Assets | ||
Trading and AFS securities | 0.65 | |
Trading and AFS securities | Prepayment rate (annual CPR) | Weighted Average | ||
Assets | ||
Trading and AFS securities | 0.08 | |
Trading and AFS securities | Whole loan discount rate | Minimum | ||
Assets | ||
Trading and AFS securities | 0.06 | |
Trading and AFS securities | Whole loan discount rate | Maximum | ||
Assets | ||
Trading and AFS securities | 0.28 | |
Trading and AFS securities | Whole loan discount rate | Weighted Average | ||
Assets | ||
Trading and AFS securities | 0.10 | |
Trading and AFS securities | Default rate | Minimum | ||
Assets | ||
Trading and AFS securities | 0 | |
Trading and AFS securities | Default rate | Maximum | ||
Assets | ||
Trading and AFS securities | 0.16 | |
Trading and AFS securities | Default rate | Weighted Average | ||
Assets | ||
Trading and AFS securities | 0.001 | |
Trading and AFS securities | Loss severity | Minimum | ||
Assets | ||
Trading and AFS securities | 0 | |
Trading and AFS securities | Loss severity | Maximum | ||
Assets | ||
Trading and AFS securities | 0.50 | |
Trading and AFS securities | Loss severity | Weighted Average | ||
Assets | ||
Trading and AFS securities | 0.18 | |
Home Equity Investments (HEI) | ||
Assets | ||
Home Equity Investments (HEI) | $ 253,303 | |
Home Equity Investments (HEI) | Prepayment rate (annual CPR) | Minimum | ||
Assets | ||
HEI, Measurement input | 0.01 | |
Home Equity Investments (HEI) | Prepayment rate (annual CPR) | Maximum | ||
Assets | ||
HEI, Measurement input | 0.20 | |
Home Equity Investments (HEI) | Prepayment rate (annual CPR) | Weighted Average | ||
Assets | ||
HEI, Measurement input | 0.14 | |
Home Equity Investments (HEI) | Default rate | Minimum | ||
Assets | ||
HEI, Measurement input | 0.10 | |
Home Equity Investments (HEI) | Default rate | Maximum | ||
Assets | ||
HEI, Measurement input | 0.10 | |
Home Equity Investments (HEI) | Default rate | Weighted Average | ||
Assets | ||
HEI, Measurement input | 0.10 | |
Home Equity Investments (HEI) | Home price appreciation (depreciation) | Minimum | ||
Assets | ||
HEI, Measurement input | 0.04 | |
Home Equity Investments (HEI) | Home price appreciation (depreciation) | Maximum | ||
Assets | ||
HEI, Measurement input | 0.04 | |
Home Equity Investments (HEI) | Home price appreciation (depreciation) | Weighted Average | ||
Assets | ||
HEI, Measurement input | 0.04 | |
HEI held by HEI securitization entities | ||
Assets | ||
Home Equity Investments (HEI) | $ 320,816 | |
Servicer advance investments | ||
Assets | ||
Servicing asset | $ 227,363 | |
Servicer advance investments | Minimum | ||
Assets | ||
Expected remaining life | 5 years | |
Servicer advance investments | Maximum | ||
Assets | ||
Expected remaining life | 5 years | |
Servicer advance investments | Weighted Average | ||
Assets | ||
Expected remaining life | 5 years | |
Servicer advance investments | Prepayment rate (annual CPR) | Minimum | ||
Assets | ||
Servicing asset, measurement input | 0.11 | |
Servicer advance investments | Prepayment rate (annual CPR) | Maximum | ||
Assets | ||
Servicing asset, measurement input | 0.30 | |
Servicer advance investments | Prepayment rate (annual CPR) | Weighted Average | ||
Assets | ||
Servicing asset, measurement input | 0.14 | |
Servicer advance investments | Whole loan discount rate | Minimum | ||
Assets | ||
Servicing asset, measurement input | 0.03 | |
Servicer advance investments | Whole loan discount rate | Maximum | ||
Assets | ||
Servicing asset, measurement input | 0.06 | |
Servicer advance investments | Whole loan discount rate | Weighted Average | ||
Assets | ||
Servicing asset, measurement input | 0.04 | |
Servicer advance investments | Mortgage servicing income | Minimum | ||
Assets | ||
Loan purchase commitments, measurement input | 0.0003 | |
Servicer advance investments | Mortgage servicing income | Maximum | ||
Assets | ||
Loan purchase commitments, measurement input | 0.0018 | |
Servicer advance investments | Mortgage servicing income | Weighted Average | ||
Assets | ||
Loan purchase commitments, measurement input | 0.0010 | |
MSRs | ||
Assets | ||
Servicing asset | $ 28,653 | |
MSRs | Prepayment rate (annual CPR) | Minimum | ||
Assets | ||
Servicing asset, measurement input | 0.02 | |
MSRs | Prepayment rate (annual CPR) | Maximum | ||
Assets | ||
Servicing asset, measurement input | 0.16 | |
MSRs | Prepayment rate (annual CPR) | Weighted Average | ||
Assets | ||
Servicing asset, measurement input | 0.05 | |
MSRs | Whole loan discount rate | Minimum | ||
Assets | ||
Servicing asset, measurement input | 0.10 | |
MSRs | Whole loan discount rate | Maximum | ||
Assets | ||
Servicing asset, measurement input | 0.46 | |
MSRs | Whole loan discount rate | Weighted Average | ||
Assets | ||
Servicing asset, measurement input | 0.10 | |
MSRs | Per loan annual cost to service | Minimum | ||
Assets | ||
Servicing asset, measurement input | $ / loan | 93 | |
MSRs | Per loan annual cost to service | Maximum | ||
Assets | ||
Servicing asset, measurement input | $ / loan | 93 | |
MSRs | Per loan annual cost to service | Weighted Average | ||
Assets | ||
Servicing asset, measurement input | $ / loan | 93 | |
Excess MSRs | ||
Assets | ||
Servicing asset | $ 34,754 | |
Excess MSRs | Prepayment rate (annual CPR) | Minimum | ||
Assets | ||
Servicing asset, measurement input | 0.10 | |
Excess MSRs | Prepayment rate (annual CPR) | Maximum | ||
Assets | ||
Servicing asset, measurement input | 1 | |
Excess MSRs | Prepayment rate (annual CPR) | Weighted Average | ||
Assets | ||
Servicing asset, measurement input | 0.17 | |
Excess MSRs | Whole loan discount rate | Minimum | ||
Assets | ||
Servicing asset, measurement input | 0.12 | |
Excess MSRs | Whole loan discount rate | Maximum | ||
Assets | ||
Servicing asset, measurement input | 0.19 | |
Excess MSRs | Whole loan discount rate | Weighted Average | ||
Assets | ||
Servicing asset, measurement input | 0.18 | |
Excess MSRs | Excess mortgage servicing amount | Minimum | ||
Assets | ||
Servicing asset, measurement input | 0.0008 | |
Excess MSRs | Excess mortgage servicing amount | Maximum | ||
Assets | ||
Servicing asset, measurement input | 0.0020 | |
Excess MSRs | Excess mortgage servicing amount | Weighted Average | ||
Assets | ||
Servicing asset, measurement input | 0.0011 | |
Residential consumer loan purchase commitments, net | ||
Assets | ||
Loan purchase commitments, net | $ 3,670 | |
Residential consumer loan purchase commitments, net | Senior credit spread to TBA price | Minimum | ||
Assets | ||
Loan purchase commitments, measurement input | $ / loan | 1.13 | |
Residential consumer loan purchase commitments, net | Senior credit spread to TBA price | Maximum | ||
Assets | ||
Loan purchase commitments, measurement input | $ / loan | 2.00 | |
Residential consumer loan purchase commitments, net | Senior credit spread to TBA price | Weighted Average | ||
Assets | ||
Loan purchase commitments, measurement input | $ / loan | 1.21 | |
Residential consumer loan purchase commitments, net | Senior credit support | Minimum | ||
Assets | ||
Loan purchase commitments, measurement input | 0.07 | |
Residential consumer loan purchase commitments, net | Senior credit support | Maximum | ||
Assets | ||
Loan purchase commitments, measurement input | 0.07 | |
Residential consumer loan purchase commitments, net | Senior credit support | Weighted Average | ||
Assets | ||
Loan purchase commitments, measurement input | 0.07 | |
Residential consumer loan purchase commitments, net | IO discount rate | Minimum | ||
Assets | ||
Loan purchase commitments, measurement input | 0.20 | |
Residential consumer loan purchase commitments, net | IO discount rate | Maximum | ||
Assets | ||
Loan purchase commitments, measurement input | 0.20 | |
Residential consumer loan purchase commitments, net | IO discount rate | Weighted Average | ||
Assets | ||
Loan purchase commitments, measurement input | 0.20 | |
Residential consumer loan purchase commitments, net | Prepayment rate (annual CPR) | Minimum | ||
Assets | ||
Loan purchase commitments, measurement input | 0.15 | |
Residential consumer loan purchase commitments, net | Prepayment rate (annual CPR) | Maximum | ||
Assets | ||
Loan purchase commitments, measurement input | 0.15 | |
Residential consumer loan purchase commitments, net | Prepayment rate (annual CPR) | Weighted Average | ||
Assets | ||
Loan purchase commitments, measurement input | 0.15 | |
Residential consumer loan purchase commitments, net | Pull-through rate | Minimum | ||
Assets | ||
Loan purchase commitments, measurement input | 18 | |
Residential consumer loan purchase commitments, net | Pull-through rate | Maximum | ||
Assets | ||
Loan purchase commitments, measurement input | 100 | |
Residential consumer loan purchase commitments, net | Pull-through rate | Weighted Average | ||
Assets | ||
Loan purchase commitments, measurement input | 74 | |
Residential consumer loan purchase commitments, net | Committed Sales Price | Minimum | ||
Assets | ||
Loan purchase commitments, measurement input | $ / loan | 101 | |
Residential consumer loan purchase commitments, net | Committed Sales Price | Maximum | ||
Assets | ||
Loan purchase commitments, measurement input | $ / loan | 103 | |
Residential consumer loan purchase commitments, net | Committed Sales Price | Weighted Average | ||
Assets | ||
Loan purchase commitments, measurement input | $ / loan | 103 | |
Residential consumer loan purchase commitments, net | Pull-through rate | Minimum | ||
Assets | ||
Loan purchase commitments, measurement input | 0.0200 | |
Residential consumer loan purchase commitments, net | Pull-through rate | Maximum | ||
Assets | ||
Loan purchase commitments, measurement input | 0.0650 | |
Residential consumer loan purchase commitments, net | Pull-through rate | Weighted Average | ||
Assets | ||
Loan purchase commitments, measurement input | 0.0276 | |
At consolidated CAFL Bridge entities | ||
Liabilities | ||
Fair value of securities owned | $ 25,000 | $ 22,000 |
Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values of Assets and Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Debt Instrument, Fair Value Disclosure | $ 10,975,688 | $ 9,151,263 |
Carrying Value | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Guarantee obligation | 4,649 | 5,781 |
Debt Instrument, Fair Value Disclosure | 10,975,688 | 9,151,263 |
ABS issued, net, At amortized cost | 579,862 | 660,617 |
Total ABS issued, net | 11,555,550 | 9,811,880 |
Debt obligation facilities and other financing | 2,670,129 | 2,596,582 |
Convertible notes, net | 466,110 | 503,728 |
Trust preferred securities and subordinated notes, net | 138,836 | 138,813 |
Total debt obligations, net | 3,414,626 | 3,239,123 |
Carrying Value | Senior Notes | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Senior Notes | 139,551 | 0 |
Estimated Fair Value | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Guarantee obligation | 3,385 | 3,772 |
Debt Instrument, Fair Value Disclosure | 10,975,688 | 9,151,263 |
ABS issued, net, At amortized cost | 584,155 | 637,816 |
Total ABS issued, net | 11,559,843 | 9,789,079 |
Debt obligation facilities and other financing | 2,669,070 | 2,591,931 |
Convertible notes, net | 469,876 | 488,341 |
Trust preferred securities and subordinated notes, net | 93,465 | 92,070 |
Total debt obligations, net | 3,376,871 | 3,172,342 |
Estimated Fair Value | Senior Notes | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Senior Notes | $ 144,460 | $ 0 |
Residential Consumer Loans - Schedule of Classifications and Carrying Value of Residential Consumer Loans (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
||
---|---|---|---|---|
Held-for-sale at fair value | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Fair value of loans | [1] | $ 962,548 | $ 911,192 | |
Sequoia | Held-for-investment at fair value | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Fair value of loans | 6,950,586 | 4,780,203 | ||
Freddie Mac SLST | Held-for-investment at fair value | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Fair value of loans | 1,297,022 | 1,359,242 | ||
Servicer advance investments | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Fair value of loans | 9,210,156 | 7,050,637 | ||
Servicer advance investments | Held-for-sale at fair value | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Fair value of loans | 962,548 | 911,192 | ||
Servicer advance investments | Held-for-investment at fair value | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Fair value of loans | 8,247,608 | 6,139,445 | ||
Servicer advance investments | Sequoia | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Fair value of loans | 6,950,586 | 4,780,203 | ||
Servicer advance investments | Sequoia | Held-for-sale at fair value | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Fair value of loans | 0 | 0 | ||
Servicer advance investments | Sequoia | Held-for-investment at fair value | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Fair value of loans | 6,950,586 | 4,780,203 | ||
Servicer advance investments | Freddie Mac SLST | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Fair value of loans | 1,297,022 | 1,359,242 | ||
Servicer advance investments | Freddie Mac SLST | Held-for-sale at fair value | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Fair value of loans | 0 | 0 | ||
Servicer advance investments | Freddie Mac SLST | Held-for-investment at fair value | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Fair value of loans | 1,297,022 | 1,359,242 | ||
Servicer advance investments | Redwood | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Fair value of loans | 962,548 | 911,192 | ||
Servicer advance investments | Redwood | Held-for-sale at fair value | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Fair value of loans | 962,548 | 911,192 | ||
Servicer advance investments | Redwood | Held-for-investment at fair value | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Fair value of loans | $ 0 | $ 0 | ||
|
Residential Consumer Loans - Additional Information (Details) $ in Millions |
Jun. 30, 2024
USD ($)
|
---|---|
Receivables [Abstract] | |
Mortgage servicing rights, at amortized cost | $ 946 |
Residential Consumer Loans - Schedule of Characteristics of Residential Consumer Loans Held-for-Sale (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
loan
|
Dec. 31, 2023
USD ($)
loan
|
---|---|---|
Residential Consumer Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | $ 947,691 | $ 916,877 |
Fair value of loans | 962,548 | 911,192 |
Market value of loans pledged as collateral under short-term borrowing agreements | $ 957,143 | $ 907,742 |
Weighted average coupon | 7.14% | 6.25% |
Residential Loans at Fair Value | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Number of loans in foreclosure | loan | 0 | 0 |
Residential Consumer Loans - Schedule of Quarterly Activity of Residential Consumer Loans Held-for-Sale (Details) - Residential Consumer Loans - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Principal balance of loans acquired | $ 1,874,201 | $ 181,972 | $ 2,873,987 | $ 235,018 |
Principal balance of loans sold | 5,563 | 8,925 | 207,144 | 182,078 |
Principal balance of loans transferred from HFS to HFI | 1,424,026 | 0 | 2,611,987 | 657,295 |
Net market valuation gains recorded | $ 6,535 | $ (1,085) | $ 9,032 | $ 6,093 |
Residential Consumer Loans - Schedule of Characteristics of Residential Consumer Loans Held-for-Investment (Details) - Held-for-investment at fair value - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Sequoia | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | $ 7,639,727 | $ 5,398,913 |
Average loan balance (UPB) | 835 | 757 |
Fair value of loans | $ 6,950,586 | $ 4,780,203 |
Weighted average coupon | 4.98% | 4.15% |
Unpaid principal balance of loans in foreclosure | $ 7,572 | $ 5,234 |
Average foreclosure balance (UPB) | 527 | 436 |
Freddie Mac SLST | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 1,569,864 | 1,614,974 |
Average loan balance (UPB) | 156 | 157 |
Fair value of loans | $ 1,297,022 | $ 1,359,242 |
Weighted average coupon | 4.50% | 4.50% |
Unpaid principal balance of loans in foreclosure | $ 42,231 | $ 47,654 |
Average foreclosure balance (UPB) | 164 | 163 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Sequoia | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance of loans with 90+ day delinquencies | 15,653 | 13,023 |
Average 90+ days delinquent balance (UPB) | 460 | 482 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Freddie Mac SLST | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance of loans with 90+ day delinquencies | 111,958 | 132,307 |
Average 90+ days delinquent balance (UPB) | $ 174 | $ 166 |
Residential Consumer Loans - Schedule of Quarterly Activity of Residential Consumer Loans Held-for-Investment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Principal value of loans transferred from HFS to HFI | $ 2,818,171 | $ 1,137,194 | ||
Held-for-investment at fair value | Sequoia | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Net market valuation gains (losses) recorded | $ (48,590) | $ (47,047) | (103,399) | 14,357 |
Held-for-investment at fair value | Freddie Mac SLST | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Net market valuation gains (losses) recorded | (11,171) | $ (44,147) | (15,401) | (11,710) |
Held-for-investment at fair value | Sequoia | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Principal value of loans transferred from HFS to HFI | $ 1,424,026 | $ 2,611,987 | $ 657,295 |
Residential Investor Loans - Classifications and Carrying Values of Residential Investor Loans (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Held-for-sale at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | $ 259,483 | $ 180,250 |
Held-for-sale at fair value | Residential Investor Term | Redwood | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 217,761 | 144,359 |
Held-for-sale at fair value | Residential Investor Term | CAFL | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 0 | 0 |
Held-for-sale at fair value | Residential Investor Bridge | Redwood | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 41,722 | 35,891 |
Held-for-sale at fair value | Residential Investor Bridge | CAFL | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 0 | 0 |
Held-for-investment at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 4,620,167 | 5,040,048 |
Held-for-investment at fair value | Residential Investor Term | Redwood | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 0 | |
Held-for-investment at fair value | Residential Investor Term | CAFL | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 2,737,467 | 2,971,725 |
Held-for-investment at fair value | Residential Investor Bridge | Redwood | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 1,197,073 | 1,305,727 |
Held-for-investment at fair value | Residential Investor Bridge | CAFL | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 685,627 | 762,596 |
Total Residential Investor Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 4,879,650 | 5,220,298 |
Total Residential Investor Loans | Residential Investor Term | Redwood | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 217,761 | 144,359 |
Total Residential Investor Loans | Residential Investor Term | CAFL | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 2,737,467 | 2,971,725 |
Total Residential Investor Loans | Residential Investor Bridge | Redwood | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 1,238,795 | 1,341,618 |
Total Residential Investor Loans | Residential Investor Bridge | CAFL | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 685,627 | 762,596 |
Held-for-sale residential loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 9,210,156 | 7,050,637 |
Held-for-sale residential loans | Redwood | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 962,548 | 911,192 |
Held-for-sale residential loans | Held-for-investment at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | 8,247,608 | 6,139,445 |
Held-for-sale residential loans | Held-for-investment at fair value | Redwood | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value of loans | $ 0 | $ 0 |
Residential Investor Loans - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Principal payments on real estate securities | $ 669 | $ 637 | ||
Commitment To Fund Residential Investor Bridge Loan | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Commitment to fund loan | $ 448,000 | $ 448,000 | ||
SOFR | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Real estate owned, rate (as a percent) | 67.00% | |||
Fixed Rate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Real estate owned, rate (as a percent) | 33.00% | |||
Residential Investor Bridge | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Loans sold | 135,000 | $ 187,000 | ||
Principal payments on real estate securities | 6,000 | 21,000 | ||
Financing receivable, modified in period, amount | 379,000 | 429,000 | ||
Unpaid principal balance | 324,000 | 324,000 | $ 340,000 | |
Fair value of loans | 290,000 | 290,000 | 312,000 | |
Residential Investor Bridge | Financing Receivables Less Than 90 Days Past Due | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Unpaid principal balance | 204,000 | 204,000 | $ 207,000 | |
Residential Investor Bridge | Estimated Fair Value | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing receivable, modified in period, amount | $ 369,000 | 417,000 | ||
Residential Investor Bridge | Payment Deferral | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing receivable, modified in period, amount | 43,000 | |||
Residential Investor Bridge | Interest Rate Below Market Reduction | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing receivable, modified in period, amount | $ 335,000 | |||
Residential Investor Term Loans | Financial Instrument, Term One | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing receivable, term | 3 years | 3 years | ||
Residential Investor Term Loans | Financial Instrument, Term Two | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing receivable, term | 5 years | 5 years | ||
Residential Investor Term Loans | Financial Instrument, Term Three | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing receivable, term | 7 years | 7 years | ||
Residential Investor Term Loans | Financial Instrument, Term Four | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing receivable, term | 10 years | 10 years | ||
Minimum | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Modified, Weighted Average Term Increase from Modification | 5 months | 5 months | ||
Minimum | Bridge Loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Residential bridge loans held-for-investment, original maturities (in months) | 6 months | |||
Maximum | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Modified, Weighted Average Term Increase from Modification | 7 months | 7 months | ||
Maximum | Bridge Loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Residential bridge loans held-for-investment, original maturities (in months) | 36 months |
Residential Investor Loans - Activity and Characteristics of Residential Investor Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Principal balance of loans originated | $ 2,901,465 | $ 242,235 | |||
Principal payments on real estate securities | 669 | 637 | |||
Term at Redwood | Redwood | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Principal balance of loans originated | $ 217,538 | $ 128,622 | 334,628 | 302,700 | |
Principal balance of loans acquired | 648 | 0 | 648 | 0 | |
Principal payments on real estate securities | 252,424 | 180,404 | 258,456 | 398,106 | |
Fair value of loans transferred | 0 | 0 | 0 | 0 | |
Net market valuation gains (losses) recorded | (337) | (13,625) | (1,337) | (13,625) | |
Term at Redwood | Redwood | Total residential mortgage banking activities, net | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Net market valuation gains (losses) recorded | 5,957 | (1,132) | 5,661 | 11,534 | |
Residential investor bridge loans held-for-investment | Redwood | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Principal balance of loans originated | 234,115 | 269,713 | 428,144 | 524,865 | |
Principal balance of loans acquired | 0 | 8,149 | 15,677 | 17,234 | |
Principal payments on real estate securities | 156,294 | 19,260 | 209,515 | 31,807 | |
Fair value of loans transferred | (89,202) | (140,186) | (187,933) | (220,978) | |
Net market valuation gains (losses) recorded | (13,992) | (8,778) | (17,210) | (7,266) | |
Residential investor bridge loans held-for-investment | Redwood | Total residential mortgage banking activities, net | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Net market valuation gains (losses) recorded | 1,108 | 2,291 | 2,054 | 3,453 | |
Total Residential Investor Loans | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Fair value of loans | 4,879,650 | 4,879,650 | $ 5,220,298 | ||
Total Residential Investor Loans | CAFL | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Net market valuation gains (losses) recorded | 3,530 | (37,780) | 11,113 | (601) | |
Single Family Rental Loans Held For Investment At Fair Value | CAFL | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Fair value of loans transferred to HFI | 0 | 0 | 0 | 0 | |
Unpaid principal balance | 2,946,186 | 2,946,186 | 3,194,131 | ||
Average UPB of loans | 3,044 | 3,044 | 3,028 | ||
Fair value of loans | $ 2,737,466 | $ 2,737,466 | $ 2,971,725 | ||
Weighted average coupon | 5.34% | 5.34% | 5.34% | ||
Weighted average remaining loan term (years) | 5 years | 5 years | |||
Fair value of loans with 90+ day delinquencies | $ 18,646 | $ 18,646 | $ 15,708 | ||
Average UPB of 90+ days delinquent loans (2) | 2,664 | 2,664 | 2,244 | ||
Single Family Rental Loans Held For Investment At Fair Value | CAFL | Financing Receivables, Equal to Greater than 90 Days Past Due | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Fair value of loans with 90+ day delinquencies | 139,628 | 139,628 | 143,623 | ||
Average UPB of 90+ days delinquent loans (2) | 3,103 | 3,103 | 3,192 | ||
Bridge at CAFL | CAFL | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Net market valuation gains (losses) recorded | (4,870) | 1,192 | (1,180) | 600 | |
Fair value of loans transferred to HFI | 89,202 | $ 140,186 | 187,933 | $ 220,978 | |
Single-Family Rental Loans, Held-For-Sale | Redwood | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Unpaid principal balance | 228,059 | 228,059 | 152,213 | ||
Average UPB of loans | 2,887 | 2,887 | 4,006 | ||
Fair value of loans | $ 217,761 | $ 217,761 | $ 144,359 | ||
Weighted average coupon | 7.20% | 7.20% | 6.92% | ||
Weighted average remaining loan term (years) | 7 years | 7 years | |||
Fair value of loans with 90+ day delinquencies | $ 27,529 | $ 27,529 | $ 28,263 | ||
Average UPB of 90+ days delinquent loans (2) | 27,529 | 27,529 | 14,132 | ||
Unpaid principal balance of loans in foreclosure | 14,750 | 14,750 | 16,822 | ||
Single-Family Rental Loans, Held-For-Sale | Redwood | Financing Receivables, Equal to Greater than 90 Days Past Due | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Fair value of loans | 14,750 | 14,750 | 16,822 | ||
Fair value of loans with 90+ day delinquencies | 27,529 | 27,529 | 28,263 | ||
Average UPB of 90+ days delinquent loans (2) | 27,529 | 27,529 | 14,132 | ||
Single-Family Rental Loans, Held-For-Sale | Redwood | Loans Pledged As Collateral, Short Term Debt | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Net market valuation gains (losses) recorded | 166,221 | 124,934 | |||
Business Purpose Bridge Loans | Redwood | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Unpaid principal balance | 1,266,729 | 1,266,729 | 1,360,957 | ||
Average UPB of loans | 7,917 | 7,917 | 8,453 | ||
Fair value of loans | $ 1,238,795 | $ 1,238,795 | $ 1,341,618 | ||
Weighted average coupon | 10.19% | 10.19% | 10.41% | ||
Weighted average remaining loan term (years) | 1 year | 1 year | |||
Fair value of loans with 90+ day delinquencies | $ 87,804 | $ 87,804 | $ 79,841 | ||
Average UPB of 90+ days delinquent loans (2) | 7,317 | 7,317 | 5,323 | ||
Unpaid principal balance of loans in foreclosure | 76,299 | 76,299 | 69,046 | ||
Business Purpose Bridge Loans | Redwood | Financing Receivables, Equal to Greater than 90 Days Past Due | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Fair value of loans | 94,730 | 94,730 | 86,137 | ||
Fair value of loans with 90+ day delinquencies | 107,094 | 107,094 | 96,934 | ||
Average UPB of 90+ days delinquent loans (2) | 7,650 | 7,650 | 5,702 | ||
Business Purpose Bridge Loans | Redwood | Loans Pledged As Collateral, Short Term Debt | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Net market valuation gains (losses) recorded | 1,201,822 | 1,298,198 | |||
Business Purpose Bridge Loans | CAFL | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Unpaid principal balance | 680,187 | 680,187 | 756,574 | ||
Average UPB of loans | 2,001 | 2,001 | 2,162 | ||
Fair value of loans | $ 685,627 | $ 685,627 | $ 762,596 | ||
Weighted average coupon | 10.59% | 10.59% | 10.82% | ||
Weighted average remaining loan term (years) | 1 year | 1 year | |||
Fair value of loans with 90+ day delinquencies | $ 13,771 | $ 13,771 | $ 3,931 | ||
Average UPB of 90+ days delinquent loans (2) | 1,967 | 1,967 | 1,310 | ||
Business Purpose Bridge Loans | CAFL | Financing Receivables, Equal to Greater than 90 Days Past Due | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Fair value of loans with 90+ day delinquencies | 20,593 | 20,593 | 10,646 | ||
Average UPB of 90+ days delinquent loans (2) | $ 1,872 | $ 1,872 | $ 1,774 |
Residential Investor Loans - Schedule unpaid principal balance of business purpose loans (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
|
---|---|
Residential Term, Single Family Rental | Redwood | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of loans | $ 137,347 |
Residential Term, Multifamily | Redwood | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of loans | 90,712 |
Term Loans, Single Family Rental | CAFL | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of loans | 2,296,676 |
Term Loans, Multifamily | CAFL | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of loans | 649,510 |
Residential Bridge Renovate Build For Rent | Redwood | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of loans | 548,841 |
Bridge Loans, Renovate Build For Rent | CAFL | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of loans | 374,262 |
Residential Bridge Single Asset Bridge | Redwood | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of loans | 31,629 |
Bridge Loans, Single Asset Bridge | CAFL | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of loans | 117,888 |
Residential Bridge Multifamily | Redwood | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of loans | 664,680 |
Bridge Loans, Multifamily | CAFL | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of loans | 186,637 |
Residential Bridge Third Party Originated | Redwood | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of loans | 21,579 |
Bridge Loans, Third Party Originated | CAFL | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of loans | 1,400 |
Residential Term Loans | Redwood | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of loans | 228,059 |
Term Loans | CAFL | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of loans | 2,946,186 |
BPL bridge loans | Redwood | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of loans | 1,266,729 |
Bridge Loans | CAFL | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair value of loans | $ 680,187 |
Consolidated Agency Multifamily Loans (Details) - Consolidated Agency multifamily loans, at fair value $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2024
USD ($)
loan
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2024
USD ($)
loan
|
Jun. 30, 2023
USD ($)
|
Dec. 31, 2023
USD ($)
loan
|
|
Held-for-investment at fair value | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Net market valuation gains (losses) recorded | $ 1,128 | $ (4,471) | $ 781 | $ (311) | |
Redwood | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Unpaid principal balance | 434,595 | 434,595 | $ 438,868 | ||
Fair value of loans | $ 421,794 | $ 421,794 | $ 425,285 | ||
Weighted average coupon | 4.25% | 4.25% | 4.25% | ||
Weighted average remaining loan term (years) | 1 year | 2 years | |||
Number of loans in foreclosure | loan | 0 | 0 | 0 | ||
Redwood | Financing Receivables, Equal to Greater than 90 Days Past Due | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Number of loans with 90+ day delinquencies | loan | 0 | 0 | 0 |
Real Estate Securities - Fair Values of Real Estate Securities (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
||
---|---|---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||||
Trading | $ 119,624 | $ 40,424 | ||
Available-for-sale | 144,777 | 87,373 | ||
Total Real Estate Securities | [1] | $ 264,401 | $ 127,797 | |
|
Real Estate Securities - Trading Securities by Collateral Type (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Debt and Equity Securities, FV-NI [Line Items] | |||||
Debt securities, trading, and equity securities, Fair Value | $ 119,624 | $ 119,624 | $ 40,424 | ||
Unpaid principal balance | 16,098 | 16,098 | 16,567 | ||
Fair value of securities acquired | 16,092 | $ 6,183 | 63,618 | $ 7,883 | |
Fair value of securities sold | 0 | 51,578 | 0 | 55,087 | |
Net market valuation gains (losses) recorded | 1,600 | $ 6,495 | 16,075 | $ 8,456 | |
Senior | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Debt securities, trading, and equity securities, Fair Value | 115,287 | 115,287 | 36,109 | ||
Unpaid principal balance | 0 | 0 | 0 | ||
Subordinate | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Debt securities, trading, and equity securities, Fair Value | 4,337 | 4,337 | 4,315 | ||
Unpaid principal balance | 16,098 | 16,098 | 16,567 | ||
Interest-only securities | Senior | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Debt securities, trading, and equity securities, Fair Value | 115,287 | 115,287 | 36,109 | ||
Interest-only securities | Senior | Sequoia | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Debt securities, trading, and equity securities, Fair Value | 32,000 | 32,000 | 28,000 | ||
Multifamily securities | Subordinate | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Debt securities, trading, and equity securities, Fair Value | 2,823 | 2,823 | 2,641 | ||
Other third-party securities | Subordinate | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Debt securities, trading, and equity securities, Fair Value | $ 1,514 | $ 1,514 | $ 1,674 |
Real Estate Securities - Available for Sale Securities by Collateral Type (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Debt and Equity Securities, FV-NI [Line Items] | |||||
Available-for-sale | $ 144,777 | $ 144,777 | $ 87,373 | ||
Fair value of securities acquired | 33,386 | $ 1,979 | 47,442 | $ 1,979 | |
Fair value of securities sold | 0 | 40,574 | 0 | 43,252 | |
Net unrealized gains (losses) on AFS securities | 1,054 | $ (688) | 9,710 | $ 4,319 | |
Total Senior | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Available-for-sale | 20,992 | 20,992 | 0 | ||
Other third-party securities | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Available-for-sale | 20,992 | 20,992 | 0 | ||
Mezzanine | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Available-for-sale | 13,318 | 13,318 | 0 | ||
Multifamily securities | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Available-for-sale | 2,834 | 2,834 | 0 | ||
Other third-party securities | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Available-for-sale | 10,484 | 10,484 | 0 | ||
Total Subordinate | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Available-for-sale | 110,467 | 110,467 | 87,373 | ||
Sequoia securities | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Available-for-sale | 88,165 | 88,165 | 78,942 | ||
Multifamily securities | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Available-for-sale | 8,869 | 8,869 | 4,460 | ||
Other third-party securities | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Available-for-sale | $ 13,433 | $ 13,433 | $ 3,971 |
Real Estate Securities - Additional Information (Details) |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2024
USD ($)
Investment
|
Jun. 30, 2023
USD ($)
|
Mar. 31, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
Investment
|
|
Debt and Equity Securities, FV-NI [Line Items] | ||||
Number of AFS securities (in investments) | Investment | 76 | 66 | ||
Number of securities in unrealized loss position | Investment | 16 | 21 | ||
Number of securities in a continuous unrealized loss position for twelve consecutive months or longer (in investments) | Investment | 12 | 19 | ||
Gross unrealized losses | $ 5,349,000 | $ 6,753,000 | ||
CECL allowance | 1,339,000 | $ 1,853,000 | 2,482,000 | |
Sales | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Gross realized gains | 0 | $ 1,000,000 | ||
Residential | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
AFS securities, contractual maturities, less than five years | 26,000,000 | |||
Marketable securities, due from five to ten years | 4,000,000 | |||
CECL allowance | $ 19,019,000 | $ 19,717,000 | $ 23,436,000 |
Real Estate Securities - Components of Carrying Value (Which Equals Fair Value) of Residential Available for Sale Securities (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|---|
Debt and Equity Securities, FV-NI [Line Items] | |||
Principal balance | $ 200,545 | $ 149,956 | |
Credit reserve | (19,019) | (23,436) | |
Unamortized discount, net | (54,197) | (46,885) | |
Amortized cost | 127,329 | 79,635 | |
Gross unrealized gains | 24,136 | 16,973 | |
Gross unrealized losses | (5,349) | (6,753) | |
CECL allowance | (1,339) | $ (1,853) | (2,482) |
Carrying Value | 144,777 | 87,373 | |
Senior | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Principal balance | 21,000 | 0 | |
Credit reserve | 0 | 0 | |
Unamortized discount, net | (49) | 0 | |
Amortized cost | 20,951 | 0 | |
Gross unrealized gains | 42 | 0 | |
Gross unrealized losses | (1) | 0 | |
CECL allowance | 0 | 0 | |
Carrying Value | 20,992 | 0 | |
Mezzanine | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Principal balance | 15,096 | 0 | |
Credit reserve | 0 | 0 | |
Unamortized discount, net | (2,159) | 0 | |
Amortized cost | 12,937 | 0 | |
Gross unrealized gains | 381 | 0 | |
Gross unrealized losses | 0 | 0 | |
CECL allowance | 0 | 0 | |
Carrying Value | 13,318 | 0 | |
Subordinate | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Principal balance | 164,449 | 149,956 | |
Credit reserve | (19,019) | (23,436) | |
Unamortized discount, net | (51,989) | (46,885) | |
Amortized cost | 93,441 | 79,635 | |
Gross unrealized gains | 23,713 | 16,973 | |
Gross unrealized losses | (5,348) | (6,753) | |
CECL allowance | (1,339) | (2,482) | |
Carrying Value | $ 110,467 | $ 87,373 |
Real Estate Securities - Changes of Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2024 |
|
Credit Reserve | ||
Beginning balance | $ 1,853 | $ 2,482 |
Ending Balance | 1,339 | 1,339 |
Unamortized Discount, Net | ||
Beginning balance | 46,885 | |
Ending Balance | 54,197 | 54,197 |
Residential | ||
Credit Reserve | ||
Beginning balance | 19,717 | 23,436 |
Amortization of net discount | 0 | 0 |
Realized credit recoveries (losses), net | 156 | 174 |
Acquisitions | 0 | 0 |
Sales, calls, other | 0 | 0 |
Transfers to (release of) credit reserves, net | (854) | (4,591) |
Ending Balance | 19,019 | 19,019 |
Unamortized Discount, Net | ||
Beginning balance | 52,891 | 46,885 |
Amortization of net discount | (337) | (429) |
Realized credit recoveries (losses), net | 0 | 0 |
Acquisitions | 789 | 3,150 |
Sales, calls, other | 0 | 0 |
Transfers to (release of) credit reserves, net | 854 | 4,591 |
Ending Balance | $ 54,197 | $ 54,197 |
Real Estate Securities - Components of Carrying Value of Residential Available for Sale Securities in Unrealized Loss Position (Details) - Residential - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Consecutive Months, Fair Value | $ 10,084 | $ 2,374 |
Less Than 12 Consecutive Months, Unrealized Losses | (97) | (128) |
12 Consecutive Months or Longer, Fair Value | 21,406 | 27,299 |
12 Consecutive Months or Longer, Unrealized Losses | $ (5,252) | $ (6,625) |
Real Estate Securities - Summary of Significant Valuation Assumptions for Available for Sale Securities Credit Loss (Details) - Subordinate |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Debt Securities, Available-for-sale [Line Items] | |
Default rate | 0.80% |
Loss severity | 20.00% |
Real Estate Securities - Activity of Allowance for Credit Losses for Available-for-sale Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2024 |
|
Rollforward of Allowance for Credit Losses | ||
Beginning balance | $ 1,853 | $ 2,482 |
Additions to allowance for credit losses on securities for which credit losses were not previously recorded | 0 | 0 |
Additional increases (or decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period | (514) | (1,143) |
Reduction to allowance for securities sold during the period | 0 | 0 |
Ending Balance | $ 1,339 | $ 1,339 |
Home Equity Investments (HEI) - Schedule of Home Equity Investments (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Dec. 31, 2023
USD ($)
transaction
|
Dec. 31, 2021
transaction
|
Jun. 30, 2024
USD ($)
transaction
|
Dec. 31, 2023
USD ($)
transaction
|
Dec. 31, 2021
transaction
|
|||
Equity Method Investments and Joint Ventures [Abstract] | |||||||
Number of securitization transactions co-sponsored | transaction | 2 | 2 | 2 | 2 | 2 | ||
Schedule of Equity Method Investments [Line Items] | |||||||
Home equity investments | [1] | $ 550,436 | $ 574,119 | $ 550,436 | |||
Redwood | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Home equity investments | 244,719 | 253,303 | 244,719 | ||||
HEI held at consolidated HEI securitization entities | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Home equity investments | $ 305,717 | $ 320,816 | $ 305,717 | ||||
|
Home Equity Investments (HEI) - Activity of HEI (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Fair value of HEI purchased and originated | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net market valuation gains (losses) | $ 0 | $ 0 | $ 0 | $ 0 |
Fair value of HEI purchased and originated | Redwood | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net market valuation gains (losses) | 299 | 8,954 | 606 | 25,513 |
Net market valuation gains (losses) recorded | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net market valuation gains (losses) | 17,029 | 3,138 | 32,453 | 4,206 |
Net market valuation gains (losses) recorded | Redwood | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net market valuation gains (losses) | $ 11,663 | $ 8,468 | $ 17,806 | $ 12,308 |
Home Equity Investments (HEI) - HEI Characteristics (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024
USD ($)
Contract
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2024
USD ($)
Contract
|
Jun. 30, 2023
USD ($)
|
Dec. 31, 2023
USD ($)
Contract
|
|
Schedule of Equity Method Investments [Line Items] | |||||
Total HEI income, net | $ 15,839 | $ 8,921 | $ 24,870 | $ 13,186 | |
Amortization of deferred loss | 200,124 | 152,885 | 380,654 | 304,964 | |
Net market valuation gains recorded on HEI at Redwood | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total HEI income, net | 11,663 | 8,468 | 17,806 | 12,308 | |
Net market valuation gains recorded on Securitized HEI | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total HEI income, net | 17,029 | 3,138 | 32,453 | 4,206 | |
ABS Issued From HEI Securitization | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total HEI income, net | (5,472) | (1,888) | (12,881) | (1,762) | |
Amortization of deferred loss | 3,000 | 1,000 | |||
Net market valuation (losses) recorded on non-controlling interests in HEI securitizations | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total HEI income, net | $ (7,381) | $ (797) | $ (12,508) | $ (1,566) | |
HEI at Redwood | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of HEI contracts | Contract | 1,959 | 1,959 | 2,034 | ||
Average initial amount of contract | $ 105 | $ 105 | $ 105 | ||
Securitized HEI | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of HEI contracts | Contract | 2,317 | 2,317 | 2,434 | ||
Average initial amount of contract | $ 95 | $ 95 | $ 96 |
Other Investments - Schedule of Other Investments (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
||
---|---|---|---|---|
Net Investment Income [Line Items] | ||||
Total Other Investments | [1] | $ 349,906 | $ 343,930 | |
MSRs | ||||
Net Investment Income [Line Items] | ||||
Servicing asset, fair value | 28,653 | 24,877 | ||
Other | ||||
Net Investment Income [Line Items] | ||||
Other | 106 | 234 | ||
Servicer advance investments | ||||
Net Investment Income [Line Items] | ||||
Servicing asset, fair value | 227,363 | 225,345 | ||
Strategic investments | ||||
Net Investment Income [Line Items] | ||||
Servicing asset, fair value | 59,030 | 56,107 | ||
Excess MSRs | ||||
Net Investment Income [Line Items] | ||||
Servicing asset, fair value | $ 34,754 | $ 37,367 | ||
|
Other Investments - Additional Information (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2024
USD ($)
Investment
numberOfInvestment
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2024
USD ($)
partnership
Investment
numberOfInvestment
|
Jun. 30, 2023
USD ($)
|
Dec. 31, 2018
partnership
|
Dec. 31, 2023
USD ($)
|
|
Net Investment Income [Line Items] | ||||||
Number of partnerships consolidated | partnership | 2 | 2 | ||||
Carrying Value of Collateral | $ 3,700,905 | $ 3,700,905 | $ 3,405,564 | |||
Investment fair value changes, net | 1,098 | $ (13,517) | 22,935 | $ (17,909) | ||
Interest income | 225,417 | $ 178,981 | 430,157 | $ 357,497 | ||
Strategic investments | ||||||
Net Investment Income [Line Items] | ||||||
Investment fair value changes, net | $ (1,000) | $ (1,000) | ||||
Number of investments made | numberOfInvestment | 8,000 | 8,000 | ||||
Investments | $ 37,000 | $ 37,000 | ||||
Sale of investments | 200 | 300 | ||||
MSRs | ||||||
Net Investment Income [Line Items] | ||||||
Mortgage servicing rights | 28,653 | 28,653 | 24,877 | |||
Aggregate principal balance | 1,950,000 | 1,950,000 | 2,030,000 | |||
MSR income, net | $ 4,000 | $ 8,000 | ||||
RWT Horizons | Strategic investments | ||||||
Net Investment Income [Line Items] | ||||||
Number of investments made | Investment | 39 | 39 | ||||
Investments | $ 22,000 | $ 22,000 | ||||
Oaktree Capital Management, L.P. | Strategic investments | ||||||
Net Investment Income [Line Items] | ||||||
Investments | $ 6,000 | $ 6,000 | ||||
Equity method investment, ownership percentage | 20.00% | 20.00% | ||||
CPP Investments | Strategic investments | ||||||
Net Investment Income [Line Items] | ||||||
Investments | $ 1,000 | $ 1,000 | ||||
Equity method investment, ownership percentage | 20.00% | 20.00% | ||||
Servicer advance financing | ||||||
Net Investment Income [Line Items] | ||||||
Carrying Value of Collateral | $ 176,000 | $ 176,000 | ||||
Repayments received | 9,000 | 9,000 | ||||
Income (loss) from equity method investments | 5,000 | 10,000 | ||||
Investment fair value changes, net | 12,000 | 11,000 | ||||
Held-for-sale residential loans | ||||||
Net Investment Income [Line Items] | ||||||
Mortgage servicing rights | 227,363 | 227,363 | 225,345 | |||
Servicing asset, unpaid principal balance on underlying loan | 9,640,000 | 9,640,000 | ||||
Excess MSRs | ||||||
Net Investment Income [Line Items] | ||||||
Mortgage servicing rights | 34,754 | 34,754 | $ 37,367 | |||
Investment fair value changes, net | (1,000) | (3,000) | ||||
Interest income | 3,000 | 7,000 | ||||
Fair value option elected aggregate carrying amount, asset | $ 1,000 | $ 10,000 |
Other Investments - Servicing Advance Investments (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Schedule of Investments [Line Items] | ||
Total Servicer Advance Receivables | $ 175,628 | $ 184,587 |
Servicer advance financing | ||
Schedule of Investments [Line Items] | ||
Principal and interest advances | 57,284 | 60,216 |
Escrow advances (taxes and insurance advances) | 87,137 | 91,792 |
Corporate advances | $ 31,207 | $ 32,579 |
Derivative Financial Instruments - Schedule of Fair Value and Notional Amount of Derivative Financial Instruments (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Derivative [Line Items] | ||
Fair Value | $ 42,563 | $ (19,616) |
Notional Amount | 6,090,769 | 2,628,677 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 50,000 | |
TBAs | ||
Derivative [Line Items] | ||
Notional Amount | 1,040,000 | 1,790,000 |
Interest rate futures | ||
Derivative [Line Items] | ||
Notional Amount | 427,000 | 142,000 |
Swaptions | ||
Derivative [Line Items] | ||
Notional Amount | 3,080,000 | |
Derivative Liabilities | ||
Derivative [Line Items] | ||
Fair Value | (5,954) | (33,828) |
Notional Amount | 1,064,748 | 1,977,483 |
Derivative Liabilities | TBAs | ||
Derivative [Line Items] | ||
Fair Value | (923) | (27,020) |
Notional Amount | 330,000 | 1,405,000 |
Derivative Liabilities | Interest rate futures | ||
Derivative [Line Items] | ||
Fair Value | (2,717) | (3,394) |
Notional Amount | 348,200 | 141,500 |
Derivative Liabilities | Loan purchase and interest rate lock commitments | ||
Derivative [Line Items] | ||
Fair Value | (2,314) | (3,414) |
Notional Amount | 386,548 | 430,983 |
Derivative Assets | ||
Derivative [Line Items] | ||
Fair Value | 48,517 | 14,212 |
Notional Amount | 5,026,021 | 651,194 |
Derivative Assets | Interest rate swaps | ||
Derivative [Line Items] | ||
Fair Value | 0 | 1,742 |
Notional Amount | 0 | 50,000 |
Derivative Assets | TBAs | ||
Derivative [Line Items] | ||
Fair Value | 1,778 | 952 |
Notional Amount | 710,000 | 385,000 |
Derivative Assets | Interest rate futures | ||
Derivative [Line Items] | ||
Fair Value | 457 | 0 |
Notional Amount | 79,000 | 0 |
Derivative Assets | Swaptions | ||
Derivative [Line Items] | ||
Fair Value | 40,298 | 0 |
Notional Amount | 3,075,000 | 0 |
Derivative Assets | Loan purchase and interest rate lock commitments | ||
Derivative [Line Items] | ||
Fair Value | 5,984 | 11,518 |
Notional Amount | $ 1,162,021 | $ 216,194 |
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Derivative [Line Items] | ||||||||
Notional amount | $ 6,090,769 | $ 6,090,769 | $ 2,628,677 | |||||
Accumulated other comprehensive loss | (1,220,738) | $ (1,124,138) | (1,220,738) | $ (1,124,138) | $ (1,224,163) | (1,202,693) | $ (1,137,680) | $ (1,083,985) |
Interest Expense | ||||||||
Derivative [Line Items] | ||||||||
Expected amortization of realized losses related to terminated cash flow hedges | 4,000 | |||||||
Interest Rate Agreements Accounted for as Cash Flow Hedges | ||||||||
Derivative [Line Items] | ||||||||
Accumulated other comprehensive loss | 66,118 | 70,256 | 66,118 | 70,256 | $ 67,147 | 68,176 | $ 71,285 | $ 72,303 |
Loan purchase commitments and forward sales commitments | ||||||||
Derivative [Line Items] | ||||||||
Market valuations gains (losses), net | 8,000 | 2,000 | 2,000 | 2,000 | ||||
Swaptions | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | 3,080,000 | 3,080,000 | ||||||
TBAs | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | 1,040,000 | 1,040,000 | 1,790,000 | |||||
Interest rate futures | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | 427,000 | 427,000 | 142,000 | |||||
Interest rate swaps | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | $ 50,000 | |||||||
Unsecuritized Residential and Commercial Loans | ||||||||
Derivative [Line Items] | ||||||||
Valuation adjustments on derivatives | (10,000) | 100 | ||||||
Interest rate contract | Cash Flow Hedging | ||||||||
Derivative [Line Items] | ||||||||
Realized net losses from accumulated comprehensive loss into Interest expense | $ 1,000 | $ 2,000 | $ 1,000 | $ 2,000 |
Derivative Financial Instruments - Schedule of Offsetting Financial Assets, Liabilities and Collateral (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
||
---|---|---|---|---|
Assets | ||||
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet | [1] | $ 48,517 | $ 14,212 | |
Liabilities | ||||
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet | [1] | (5,954) | (33,828) | |
Total Liabilities | ||||
Gross Amounts of Recognized Assets (Liabilities) | (620,809) | (502,314) | ||
Gross Amounts Offset in Consolidated Balance Sheet | 0 | 0 | ||
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet | (620,809) | (502,314) | ||
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments | 617,771 | 472,852 | ||
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged | 3,038 | 28,878 | ||
Net Amount | 0 | (584) | ||
Interest rate agreements | ||||
Assets | ||||
Gross Amounts of Recognized Assets (Liabilities) | 40,298 | 1,742 | ||
Gross Amounts Offset in Consolidated Balance Sheet | 0 | 0 | ||
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet | 40,298 | 1,742 | ||
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments | 0 | 0 | ||
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged | (40,298) | 0 | ||
Net Amount | 0 | 1,742 | ||
TBAs | ||||
Assets | ||||
Gross Amounts of Recognized Assets (Liabilities) | 1,778 | 952 | ||
Gross Amounts Offset in Consolidated Balance Sheet | 0 | 0 | ||
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet | 1,778 | 952 | ||
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments | (145) | (952) | ||
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged | (711) | 0 | ||
Net Amount | 922 | 0 | ||
Liabilities | ||||
Gross Amounts of Recognized Assets (Liabilities) | (923) | (27,020) | ||
Gross Amounts Offset in Consolidated Balance Sheet | 0 | 0 | ||
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet | (923) | (27,020) | ||
Gross Amounts Nots Offset in Consolidated Balance Sheet, Financial Instruments | 145 | 952 | ||
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged | 778 | 25,484 | ||
Net Amount | 0 | (584) | ||
Futures | ||||
Assets | ||||
Gross Amounts of Recognized Assets (Liabilities) | 457 | 0 | ||
Gross Amounts Offset in Consolidated Balance Sheet | 0 | 0 | ||
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet | 457 | 0 | ||
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments | (457) | 0 | ||
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged | 0 | 0 | ||
Net Amount | 0 | 0 | ||
Liabilities | ||||
Gross Amounts of Recognized Assets (Liabilities) | (2,717) | (3,394) | ||
Gross Amounts Offset in Consolidated Balance Sheet | 0 | 0 | ||
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet | (2,717) | (3,394) | ||
Gross Amounts Nots Offset in Consolidated Balance Sheet, Financial Instruments | 457 | 0 | ||
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged | 2,260 | 3,394 | ||
Net Amount | 0 | 0 | ||
Interest Rate Agreement, TBAs, and Futures | ||||
Assets | ||||
Gross Amounts of Recognized Assets (Liabilities) | 42,533 | 2,694 | ||
Gross Amounts Offset in Consolidated Balance Sheet | 0 | 0 | ||
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet | 42,533 | 2,694 | ||
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments | (602) | (952) | ||
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged | (41,009) | 0 | ||
Net Amount | 922 | 1,742 | ||
Loan warehouse debt | ||||
Loan warehouse debt and Security repurchase agreement | ||||
Gross Amounts of Recognized Assets (Liabilities) | (617,169) | (471,900) | ||
Gross Amounts Offset in Consolidated Balance Sheet | 0 | 0 | ||
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet | (617,169) | (471,900) | ||
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments | 617,169 | 471,900 | ||
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged | 0 | 0 | ||
Net Amount | $ 0 | $ 0 | ||
|
Other Assets and Liabilities - Schedule of Components of Other Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
||
---|---|---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Real estate owned | $ 99,885 | $ 93,599 | ||
Accrued interest receivable | 92,018 | 69,072 | ||
Investment receivable | 62,372 | 67,302 | ||
Deferred tax asset | 40,116 | 40,115 | ||
Intangible assets | 23,454 | 28,462 | ||
Goodwill | 23,373 | 23,373 | ||
Operating lease right-of-use assets | 10,621 | 12,532 | ||
Margin receivable | 9,758 | 33,414 | ||
Fixed assets and leasehold improvements | 6,650 | 7,829 | ||
Other | 34,934 | 27,246 | ||
Total Other Assets | [1] | 403,181 | $ 402,944 | |
Fixed assets | 18,000 | |||
Accumulated depreciation | $ (11,000) | |||
|
Other Assets and Liabilities - Schedule of Activity and Carrying Values of REO Assets (Details) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024
USD ($)
asset
|
Dec. 31, 2023
asset
|
|
Other Real Estate [Roll Forward] | ||
Balance at beginning of period | $ 93,599 | |
Transfers to REO | 13,833 | |
Liquidations | (2,461) | |
Changes in fair value, net | (5,086) | |
Balance at End of Period | 99,885 | |
Realized loss from liquidation | $ (3,000) | |
Number of REO assets | asset | 46 | 45 |
Legacy Sequoia | ||
Other Real Estate [Roll Forward] | ||
Balance at beginning of period | $ 0 | |
Transfers to REO | 0 | |
Liquidations | 0 | |
Changes in fair value, net | 0 | |
Balance at End of Period | $ 0 | |
Number of REO assets | asset | 0 | 0 |
Freddie Mac SLST | ||
Other Real Estate [Roll Forward] | ||
Balance at beginning of period | $ 3,158 | |
Transfers to REO | 1,300 | |
Liquidations | (2,334) | |
Changes in fair value, net | 403 | |
Balance at End of Period | $ 2,527 | |
Number of REO assets | asset | 20 | 28 |
CAFL | ||
Other Real Estate [Roll Forward] | ||
Balance at beginning of period | $ 2,684 | |
Transfers to REO | 8,582 | |
Liquidations | 0 | |
Changes in fair value, net | 0 | |
Balance at End of Period | $ 11,266 | |
Number of REO assets | asset | 4 | 1 |
Bridge Loan | ||
Other Real Estate [Roll Forward] | ||
Balance at beginning of period | $ 87,757 | |
Transfers to REO | 3,951 | |
Liquidations | (127) | |
Changes in fair value, net | (5,489) | |
Balance at End of Period | $ 86,092 | |
Number of REO assets | asset | 22 | 16 |
Other Assets and Liabilities - Narrative (Details) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2022
USD ($)
|
Jun. 30, 2024
USD ($)
|
Dec. 31, 2023
transaction
|
Dec. 31, 2021
transaction
|
Jun. 30, 2024
USD ($)
partnership
transaction
|
Jun. 30, 2023
USD ($)
|
Dec. 31, 2023
transaction
|
Dec. 31, 2021
transaction
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2018
partnership
|
|
Other Assets and Other Liabilities [Line Items] | ||||||||||
Intangible Assets at Acquisition | $ 95 | |||||||||
Amortization of intangible assets | $ 5 | $ 6 | ||||||||
Number of partnerships consolidated | partnership | 2 | 2 | ||||||||
Co-investors gains | $ 3 | $ 4 | ||||||||
Number of securitization transactions co-sponsored | transaction | 2 | 2 | 2 | 2 | 2 | |||||
Riverbend Funding, LLC | ||||||||||
Other Assets and Other Liabilities [Line Items] | ||||||||||
Goodwill acquired during the period | $ 23 | |||||||||
Co-Investors Interests | ||||||||||
Other Assets and Other Liabilities [Line Items] | ||||||||||
Carrying value of interests | 25 | $ 25 | ||||||||
HEI Securitization Non-Controlling Interest | ||||||||||
Other Assets and Other Liabilities [Line Items] | ||||||||||
Carrying value of interests | 72 | 72 | ||||||||
Co-investors gains | $ 7 | $ 13 |
Other Assets and Liabilities - Schedule of Amortization Period and Carrying Value of Intangible Assets, Net of Accumulated Amortization (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2019 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets at Acquisition | $ 95,000 | ||
Accumulated amortization | $ (5,000) | $ (6,000) | |
Carrying value | 23,454 | ||
5 Arches LLC and CoreVest | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets at Acquisition | 94,600 | ||
Accumulated amortization | (71,146) | ||
Carrying value | $ 23,454 | ||
Weighted Average Amortization Period (in years) | 6 years | ||
5 Arches LLC and CoreVest | Borrower network | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets at Acquisition | $ 56,300 | ||
Accumulated amortization | (33,612) | ||
Carrying value | $ 22,688 | ||
Weighted Average Amortization Period (in years) | 7 years | ||
5 Arches LLC and CoreVest | Broker network | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets at Acquisition | $ 18,100 | ||
Accumulated amortization | (18,100) | ||
Carrying value | $ 0 | ||
Weighted Average Amortization Period (in years) | 5 years | ||
5 Arches LLC and CoreVest | Non-compete agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets at Acquisition | $ 11,400 | ||
Accumulated amortization | (10,767) | ||
Carrying value | $ 633 | ||
Weighted Average Amortization Period (in years) | 3 years | ||
5 Arches LLC and CoreVest | Tradenames | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets at Acquisition | $ 4,400 | ||
Accumulated amortization | (4,267) | ||
Carrying value | $ 133 | ||
Weighted Average Amortization Period (in years) | 3 years | ||
5 Arches LLC and CoreVest | Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets at Acquisition | $ 1,800 | ||
Accumulated amortization | (1,800) | ||
Carrying value | $ 0 | ||
Weighted Average Amortization Period (in years) | 2 years | ||
5 Arches LLC and CoreVest | Loan administration fees on existing loan assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets at Acquisition | $ 2,600 | ||
Accumulated amortization | (2,600) | ||
Carrying value | $ 0 | ||
Weighted Average Amortization Period (in years) | 1 year |
Other Assets and Liabilities - Schedule of Estimated Future Amortization Expense (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
|
---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
2024 (6 months) | $ 4,406 |
2025 | 8,426 |
2026 | 6,694 |
2027 | 1,571 |
2028 and thereafter | 2,357 |
Total Future Intangible Asset Amortization | $ 23,454 |
Other Assets and Liabilities - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
||
---|---|---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Payable to noncontrolling interests | $ 97,215 | $ 81,177 | ||
Accrued interest payable | 60,060 | 52,755 | ||
Margin payable | 44,583 | 350 | ||
Accrued compensation | 21,570 | 28,140 | ||
Operating lease liabilities | 12,656 | 14,725 | ||
Accrued operating expenses | 9,321 | 5,527 | ||
Current accounts payable | 4,698 | 4,992 | ||
Guarantee obligations | 4,649 | 5,781 | ||
Accrued taxes payable | 4,078 | 0 | ||
Unsettled trades | 3,859 | 0 | ||
Residential consumer loan and MSR repurchase reserve | 3,631 | 4,700 | ||
Bridge loan holdbacks | 2,148 | 2,059 | ||
Preferred stock dividends payable | 1,478 | |||
Other | 24,290 | 15,119 | ||
Total Accrued Expenses and Other Liabilities | [1] | $ 294,236 | $ 216,803 | |
|
Principles of Consolidation - Narrative (Details) |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Dec. 31, 2023
transaction
|
Dec. 31, 2021
transaction
|
Jun. 30, 2024
partnership
transaction
securitization_entity
entity
|
Dec. 31, 2023
transaction
|
Dec. 31, 2021
transaction
|
Dec. 31, 2018
partnership
|
|
Variable Interest Entity [Line Items] | ||||||
Number of partnerships consolidated | 2 | 2 | ||||
Number of securitization transactions co-sponsored | transaction | 2 | 2 | 2 | 2 | 2 | |
Securitization entity | securitization_entity | 2 | |||||
VIEs | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of partnerships consolidated | 2 | |||||
VIE, ownership interest rate (as a percent) | 80.00% | |||||
VIEs | Servicing Investment | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of partnerships consolidated | 2 | |||||
VIE, ownership interest rate (as a percent) | 80.00% | |||||
Variable Interest Entity, Not Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of securitization entities to which asset transferred (in entities) | entity | 46 |
Principles of Consolidation - Schedule of Assets and Liabilities of Consolidated VIEs (Details) $ in Thousands |
6 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 30, 2024
USD ($)
Investment
securitization_entity
|
Dec. 31, 2023
USD ($)
Investment
|
Jun. 30, 2023
USD ($)
|
|||||
Variable Interest Entity [Line Items] | |||||||
Home equity investments | [1] | $ 574,119 | $ 550,436 | ||||
Other investments | [1] | 349,906 | 343,930 | ||||
Cash and cash equivalents | 275,581 | [1] | 293,104 | [1] | $ 357,308 | ||
Accrued interest receivable | 92,018 | 69,072 | |||||
Other assets | [1] | 403,181 | 402,944 | ||||
Total Assets | [1] | 16,491,104 | 14,504,327 | ||||
Accrued interest payable | 60,060 | 52,755 | |||||
Accrued expenses and other liabilities | [1] | 294,236 | 216,803 | ||||
Asset-backed securities issued | [1] | 11,555,550 | 9,811,880 | ||||
Total liabilities | [1] | $ 15,270,366 | 13,301,634 | ||||
Securitization entity | securitization_entity | 2 | ||||||
CAFL | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of securities owned | $ 337,000 | 323,000 | |||||
At consolidated CAFL Bridge entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of securities owned | 25,000 | 22,000 | |||||
Freddie Mac SLST | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of securities owned | 258,000 | 274,000 | |||||
VIEs | |||||||
Variable Interest Entity [Line Items] | |||||||
Total Assets | 12,844,193 | 10,988,885 | |||||
Total liabilities | 11,866,962 | 10,096,308 | |||||
VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Home equity investments | 320,816 | 305,717 | |||||
Other investments | 257,676 | 257,489 | |||||
Cash and cash equivalents | 24,791 | 9,482 | |||||
Restricted cash | 33,347 | 44,905 | |||||
Accrued interest receivable | 58,620 | 47,798 | |||||
Other assets | 56,447 | 24,443 | |||||
Total Assets | 12,844,193 | 10,988,885 | |||||
Short-term debt | 145,785 | 153,653 | |||||
Accrued interest payable | 43,649 | 33,932 | |||||
Accrued expenses and other liabilities | 121,977 | 96,843 | |||||
Asset-backed securities issued | 11,555,551 | 9,811,880 | |||||
Total liabilities | 11,866,962 | 10,096,308 | |||||
Value of our investments in VIEs | $ 978,967 | $ 885,770 | |||||
Number of VIEs | Investment | 78 | 72 | |||||
Residential consumer loans, held-for-investment | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | $ 8,247,608 | $ 6,139,445 | |||||
Residential investor loans, held-for-investment | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | [1] | 4,620,167 | 5,040,048 | ||||
Residential investor loans, held-for-investment | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | 3,423,094 | 3,734,321 | |||||
Consolidated Agency multifamily loans | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | 421,794 | 425,285 | |||||
Sequoia | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Home equity investments | 0 | 0 | |||||
Other investments | 0 | 0 | |||||
Cash and cash equivalents | 0 | 0 | |||||
Restricted cash | 149 | 163 | |||||
Accrued interest receivable | 31,821 | 20,029 | |||||
Other assets | 0 | 0 | |||||
Total Assets | 6,982,556 | 4,800,395 | |||||
Short-term debt | 0 | 0 | |||||
Accrued interest payable | 27,879 | 16,293 | |||||
Accrued expenses and other liabilities | 0 | 0 | |||||
Asset-backed securities issued | 6,686,531 | 4,568,660 | |||||
Total liabilities | 6,714,410 | 4,584,953 | |||||
Value of our investments in VIEs | $ 264,136 | $ 211,638 | |||||
Number of VIEs | Investment | 48 | 42 | |||||
Sequoia | Residential consumer loans, held-for-investment | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | $ 6,950,586 | $ 4,780,203 | |||||
Sequoia | Residential investor loans, held-for-investment | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | 0 | 0 | |||||
Sequoia | Consolidated Agency multifamily loans | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | 0 | 0 | |||||
CAFL | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Home equity investments | 0 | 0 | |||||
Other investments | 0 | 0 | |||||
Cash and cash equivalents | 0 | 0 | |||||
Restricted cash | 22,280 | 33,921 | |||||
Accrued interest receivable | 18,481 | 20,806 | |||||
Other assets | 49,640 | 14,886 | |||||
Total Assets | 3,513,495 | 3,803,934 | |||||
Short-term debt | 0 | 0 | |||||
Accrued interest payable | 9,984 | 11,537 | |||||
Accrued expenses and other liabilities | 6,650 | 2,734 | |||||
Asset-backed securities issued | 3,058,191 | 3,362,978 | |||||
Total liabilities | 3,074,825 | 3,377,249 | |||||
Value of our investments in VIEs | $ 444,932 | $ 424,136 | |||||
Number of VIEs | Investment | 21 | 21 | |||||
CAFL | Residential consumer loans, held-for-investment | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | $ 0 | $ 0 | |||||
CAFL | Residential investor loans, held-for-investment | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | 3,423,094 | 3,734,321 | |||||
CAFL | Consolidated Agency multifamily loans | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | 0 | 0 | |||||
Freddie Mac SLST | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Home equity investments | 0 | 0 | |||||
Other investments | 0 | 0 | |||||
Cash and cash equivalents | 0 | 0 | |||||
Restricted cash | 0 | 0 | |||||
Accrued interest receivable | 4,678 | 4,821 | |||||
Other assets | 2,527 | 3,158 | |||||
Total Assets | 1,304,227 | 1,367,221 | |||||
Short-term debt | 0 | 0 | |||||
Accrued interest payable | 4,288 | 4,496 | |||||
Accrued expenses and other liabilities | 0 | 0 | |||||
Asset-backed securities issued | 1,204,835 | 1,265,777 | |||||
Total liabilities | 1,209,123 | 1,270,273 | |||||
Value of our investments in VIEs | $ 94,714 | $ 96,623 | |||||
Number of VIEs | Investment | 3 | 3 | |||||
Freddie Mac SLST | Residential consumer loans, held-for-investment | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | $ 1,297,022 | $ 1,359,242 | |||||
Freddie Mac SLST | Residential investor loans, held-for-investment | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | 0 | 0 | |||||
Freddie Mac SLST | Consolidated Agency multifamily loans | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | 0 | 0 | |||||
Freddie Mac K-Series | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Home equity investments | 0 | 0 | |||||
Other investments | 0 | 0 | |||||
Cash and cash equivalents | 0 | 0 | |||||
Restricted cash | 0 | 0 | |||||
Accrued interest receivable | 1,257 | 1,320 | |||||
Other assets | 0 | 0 | |||||
Total Assets | 423,051 | 426,605 | |||||
Short-term debt | 0 | 0 | |||||
Accrued interest payable | 1,131 | 1,190 | |||||
Accrued expenses and other liabilities | 0 | 0 | |||||
Asset-backed securities issued | 387,791 | 391,977 | |||||
Total liabilities | 388,922 | 393,167 | |||||
Value of our investments in VIEs | $ 34,003 | $ 33,308 | |||||
Number of VIEs | Investment | 1 | 1 | |||||
Freddie Mac K-Series | Residential consumer loans, held-for-investment | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | $ 0 | $ 0 | |||||
Freddie Mac K-Series | Residential investor loans, held-for-investment | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | 0 | 0 | |||||
Freddie Mac K-Series | Consolidated Agency multifamily loans | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | 421,794 | 425,285 | |||||
Servicing Investment | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Home equity investments | 0 | 0 | |||||
Other investments | 257,676 | 257,489 | |||||
Cash and cash equivalents | 24,791 | 9,482 | |||||
Restricted cash | 0 | 0 | |||||
Accrued interest receivable | 2,383 | 822 | |||||
Other assets | 4,181 | 6,337 | |||||
Total Assets | 289,031 | 274,130 | |||||
Short-term debt | 145,785 | 153,653 | |||||
Accrued interest payable | 367 | 416 | |||||
Accrued expenses and other liabilities | 43,058 | 34,357 | |||||
Asset-backed securities issued | 0 | 0 | |||||
Total liabilities | 189,210 | 188,426 | |||||
Value of our investments in VIEs | $ 99,821 | $ 85,704 | |||||
Number of VIEs | Investment | 3 | 3 | |||||
Servicing Investment | Residential consumer loans, held-for-investment | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | $ 0 | $ 0 | |||||
Servicing Investment | Residential investor loans, held-for-investment | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | 0 | 0 | |||||
Servicing Investment | Consolidated Agency multifamily loans | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | 0 | 0 | |||||
HEI | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Home equity investments | 320,816 | 305,717 | |||||
Other investments | 0 | 0 | |||||
Cash and cash equivalents | 0 | 0 | |||||
Restricted cash | 10,918 | 10,821 | |||||
Accrued interest receivable | 0 | 0 | |||||
Other assets | 99 | 62 | |||||
Total Assets | 331,833 | 316,600 | |||||
Short-term debt | 0 | 0 | |||||
Accrued interest payable | 0 | 0 | |||||
Accrued expenses and other liabilities | 72,269 | 59,752 | |||||
Asset-backed securities issued | 218,203 | 222,488 | |||||
Total liabilities | 290,472 | 282,240 | |||||
Value of our investments in VIEs | $ 41,361 | $ 34,361 | |||||
Number of VIEs | Investment | 2 | 2 | |||||
Fair value of securities owned | $ 41,000 | ||||||
HEI | Residential consumer loans, held-for-investment | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | 0 | $ 0 | |||||
HEI | Residential investor loans, held-for-investment | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | 0 | 0 | |||||
HEI | Consolidated Agency multifamily loans | VIEs | Collateralized Financing Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Fair value of loans | $ 0 | $ 0 | |||||
|
Principles of Consolidation - Schedule of Income (Loss) from Consolidated VIEs (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Variable Interest Entity [Line Items] | ||||
Interest income | $ 225,417 | $ 178,981 | $ 430,157 | $ 357,497 |
Interest expense | (200,124) | (152,885) | (380,654) | (304,964) |
Net Interest Income | 25,293 | 26,096 | 49,503 | 52,533 |
Investment fair value changes, net | 1,098 | (13,517) | 22,935 | (17,909) |
HEI income, net | 15,839 | 8,921 | 24,870 | 13,186 |
Realized gains, net | 0 | 1,056 | 409 | 1,054 |
Total non-interest income, net | 42,154 | 17,170 | 92,493 | 38,268 |
Net Income | 15,534 | 2,873 | 45,796 | 7,493 |
VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Interest income | 166,032 | 122,683 | 316,752 | 242,232 |
Interest expense | (136,581) | (93,955) | (260,085) | (185,363) |
Net Interest Income | 29,451 | 28,728 | 56,667 | 56,869 |
Investment fair value changes, net | 12,883 | 1,594 | 33,984 | 3,388 |
HEI income, net | 4,176 | 453 | 7,064 | |
Other income | 428 | 212 | 733 | 384 |
Realized gains, net | 314 | |||
Total non-interest income, net | 17,487 | 2,259 | 42,095 | 3,772 |
General and administrative expenses | (53) | (3) | (118) | 7 |
Other expenses | (2,974) | (1,904) | (3,530) | (2,481) |
Net Income | 43,911 | 29,080 | 95,114 | 58,167 |
Sequoia | VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Interest income | 80,881 | 40,218 | 143,859 | 77,405 |
Interest expense | (74,373) | (36,653) | (133,195) | (69,212) |
Net Interest Income | 6,508 | 3,565 | 10,664 | 8,193 |
Investment fair value changes, net | 4,322 | 918 | 9,450 | 3,266 |
HEI income, net | 0 | 0 | 0 | |
Other income | 0 | 0 | 0 | 0 |
Realized gains, net | 0 | |||
Total non-interest income, net | 4,322 | 918 | 9,450 | 3,266 |
General and administrative expenses | 0 | 0 | 0 | 0 |
Other expenses | 0 | 0 | 0 | 0 |
Net Income | 10,830 | 4,483 | 20,114 | 11,459 |
CAFL | VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Interest income | 58,881 | 54,583 | 119,875 | 109,020 |
Interest expense | (41,279) | (38,545) | (84,562) | (78,087) |
Net Interest Income | 17,602 | 16,038 | 35,313 | 30,933 |
Investment fair value changes, net | 2,597 | 11,601 | 16,100 | 1,919 |
HEI income, net | 0 | 0 | 0 | |
Other income | 428 | 212 | 733 | 384 |
Realized gains, net | 314 | |||
Total non-interest income, net | 3,025 | 11,813 | 17,147 | 2,303 |
General and administrative expenses | 0 | 0 | 0 | 0 |
Other expenses | 0 | 0 | 0 | 0 |
Net Income | 20,627 | 27,851 | 52,460 | 33,236 |
Freddie Mac SLST | VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Interest income | 14,308 | 15,273 | 28,924 | 30,766 |
Interest expense | (13,610) | (10,650) | (27,591) | (21,868) |
Net Interest Income | 698 | 4,623 | 1,333 | 8,898 |
Investment fair value changes, net | (5,137) | (16,563) | (1,407) | (7,629) |
HEI income, net | 0 | 0 | 0 | |
Other income | 0 | 0 | 0 | 0 |
Realized gains, net | 0 | |||
Total non-interest income, net | (5,137) | (16,563) | (1,407) | (7,629) |
General and administrative expenses | (14) | 0 | (28) | 0 |
Other expenses | 0 | 0 | 0 | 0 |
Net Income | (4,453) | (11,940) | (102) | 1,269 |
Freddie Mac K-Series | VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Interest income | 4,559 | 4,698 | 9,140 | 9,316 |
Interest expense | (4,177) | (4,311) | (8,376) | (8,552) |
Net Interest Income | 382 | 387 | 764 | 764 |
Investment fair value changes, net | 452 | 385 | 695 | 748 |
HEI income, net | 0 | 0 | 0 | |
Other income | 0 | 0 | 0 | 0 |
Realized gains, net | 0 | |||
Total non-interest income, net | 452 | 385 | 695 | 748 |
General and administrative expenses | 0 | 0 | 0 | 0 |
Other expenses | 0 | 0 | 0 | 0 |
Net Income | 834 | 772 | 1,459 | 1,512 |
Servicing Investment | VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Interest income | 7,403 | 7,911 | 14,954 | 15,725 |
Interest expense | (3,142) | (3,796) | (6,361) | (7,644) |
Net Interest Income | 4,261 | 4,115 | 8,593 | 8,081 |
Investment fair value changes, net | 10,649 | 5,253 | 9,146 | 4,206 |
HEI income, net | 0 | 0 | 0 | |
Other income | 0 | 0 | 0 | 0 |
Realized gains, net | 0 | |||
Total non-interest income, net | 10,649 | 5,253 | 9,146 | 4,206 |
General and administrative expenses | (39) | (3) | (90) | 7 |
Other expenses | (2,974) | (1,904) | (3,530) | (2,481) |
Net Income | 11,897 | 7,461 | 14,119 | 9,813 |
HEI | VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Net Interest Income | 0 | 0 | 0 | 0 |
Investment fair value changes, net | 0 | 0 | 0 | 878 |
HEI income, net | 4,176 | 453 | 7,064 | |
Other income | 0 | 0 | 0 | 0 |
Realized gains, net | 0 | |||
Total non-interest income, net | 4,176 | 453 | 7,064 | 878 |
General and administrative expenses | 0 | 0 | 0 | 0 |
Other expenses | 0 | 0 | 0 | 0 |
Net Income | $ 4,176 | $ 453 | $ 7,064 | $ 878 |
Principles of Consolidation - Schedule of Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
On-balance sheet assets, at fair value: | ||
Subordinate securities, classified as AFS | $ 144,777 | $ 87,373 |
Subordinate securities, classified as AFS | ||
On-balance sheet assets, at fair value: | ||
Subordinate securities, classified as AFS | 110,467 | 87,373 |
Variable Interest Entity, Not Primary Beneficiary | ||
On-balance sheet assets, at fair value: | ||
Maximum loss exposure | 136,098 | 121,517 |
Assets transferred: | ||
Principal balance of loans outstanding | 3,627,578 | 3,758,914 |
Principal balance of loans 30+ days delinquent | 14,278 | 22,367 |
Variable Interest Entity, Not Primary Beneficiary | Subordinate securities, classified as AFS | ||
On-balance sheet assets, at fair value: | ||
Subordinate securities, classified as AFS | 88,165 | 78,942 |
Interest-only, senior and subordinate securities, classified as trading | Variable Interest Entity, Not Primary Beneficiary | ||
On-balance sheet assets, at fair value: | ||
Interest-only, senior and subordinate securities, classified as trading | 35,632 | 31,690 |
Mortgage servicing rights | ||
On-balance sheet assets, at fair value: | ||
Mortgage servicing rights | 28,653 | 24,877 |
Mortgage servicing rights | Variable Interest Entity, Not Primary Beneficiary | ||
On-balance sheet assets, at fair value: | ||
Mortgage servicing rights | $ 12,301 | $ 10,885 |
Asset-Backed Securities Issued - Schedule of Asset-Backed Securities Issued (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
series
trust
|
Dec. 31, 2023
USD ($)
series
trust
|
---|---|---|
Debt Instrument [Line Items] | ||
Principal Amount | $ 3,434,945 | $ 3,249,158 |
CAFL | ||
Debt Instrument [Line Items] | ||
Number of bridge securitization trusts | trust | 2 | 2 |
Asset-backed securities issued | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | $ 11,555,550 | $ 9,811,880 |
Asset-backed securities issued | Revision of Prior Period, Accounting Standards Update, Adjustment | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | (1,060,684) | (943,370) |
Asset-backed securities issued | Deferred Debt Issuance Costs | ||
Debt Instrument [Line Items] | ||
Unamortized debt discount and deferred debt issuance costs | (3,093) | (5,929) |
Asset-backed securities issued | Certificates with principal balance | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | 12,466,549 | 10,588,659 |
Asset-backed securities issued | Interest-only certificates at fair value | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | 152,778 | 172,520 |
Asset-backed securities issued | Sequoia | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | $ 6,686,531 | $ 4,568,660 |
Number of series | series | 48 | 42 |
Asset-backed securities issued | Sequoia | Revision of Prior Period, Accounting Standards Update, Adjustment | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | $ (757,641) | $ (635,260) |
Asset-backed securities issued | Sequoia | Deferred Debt Issuance Costs | ||
Debt Instrument [Line Items] | ||
Unamortized debt discount and deferred debt issuance costs | $ 0 | $ 0 |
Asset-backed securities issued | Sequoia | Minimum | ||
Debt Instrument [Line Items] | ||
Range of weighted average interest rates, by series (as a percent) | 2.67% | 2.67% |
Asset-backed securities issued | Sequoia | Maximum | ||
Debt Instrument [Line Items] | ||
Range of weighted average interest rates, by series (as a percent) | 6.71% | 6.66% |
Asset-backed securities issued | Sequoia | Certificates with principal balance | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | $ 7,393,323 | $ 5,151,646 |
Asset-backed securities issued | Sequoia | Interest-only certificates at fair value | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | 50,849 | 52,274 |
Asset-backed securities issued | CAFL | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | $ 3,058,191 | $ 3,362,978 |
Number of series | series | 20 | 21 |
Asset-backed securities issued | CAFL | Revision of Prior Period, Accounting Standards Update, Adjustment | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | $ (200,903) | $ (209,740) |
Asset-backed securities issued | CAFL | Deferred Debt Issuance Costs | ||
Debt Instrument [Line Items] | ||
Unamortized debt discount and deferred debt issuance costs | $ 0 | $ (1,935) |
Asset-backed securities issued | CAFL | Minimum | ||
Debt Instrument [Line Items] | ||
Range of weighted average interest rates, by series (as a percent) | 2.31% | 2.34% |
Asset-backed securities issued | CAFL | Maximum | ||
Debt Instrument [Line Items] | ||
Range of weighted average interest rates, by series (as a percent) | 7.89% | 7.89% |
Asset-backed securities issued | CAFL | Certificates with principal balance | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | $ 3,172,393 | $ 3,472,825 |
Asset-backed securities issued | CAFL | Interest-only certificates at fair value | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | 86,701 | 101,828 |
Asset-backed securities issued | Freddie Mac SLST | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | $ 1,204,834 | $ 1,265,777 |
Number of series | series | 3 | 3 |
Principal Amount | $ 166,000 | $ 182,000 |
Asset-backed securities issued | Freddie Mac SLST | Revision of Prior Period, Accounting Standards Update, Adjustment | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | (84,650) | (72,742) |
Asset-backed securities issued | Freddie Mac SLST | Deferred Debt Issuance Costs | ||
Debt Instrument [Line Items] | ||
Unamortized debt discount and deferred debt issuance costs | $ (3,093) | $ (3,994) |
Asset-backed securities issued | Freddie Mac SLST | Minimum | ||
Debt Instrument [Line Items] | ||
Range of weighted average interest rates, by series (as a percent) | 3.50% | 3.50% |
Asset-backed securities issued | Freddie Mac SLST | Maximum | ||
Debt Instrument [Line Items] | ||
Range of weighted average interest rates, by series (as a percent) | 7.50% | 7.50% |
Asset-backed securities issued | Freddie Mac SLST | Certificates with principal balance | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | $ 1,280,405 | $ 1,328,657 |
Asset-backed securities issued | Freddie Mac SLST | Interest-only certificates at fair value | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | 12,172 | 13,856 |
Asset-backed securities issued | Freddie Mac K-Series | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | $ 387,791 | $ 391,977 |
Range of weighted average interest rates, by series (as a percent) | 3.41% | 3.55% |
Number of series | series | 1 | 1 |
Asset-backed securities issued | Freddie Mac K-Series | Revision of Prior Period, Accounting Standards Update, Adjustment | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | $ (13,392) | $ (14,985) |
Asset-backed securities issued | Freddie Mac K-Series | Deferred Debt Issuance Costs | ||
Debt Instrument [Line Items] | ||
Unamortized debt discount and deferred debt issuance costs | 0 | 0 |
Asset-backed securities issued | Freddie Mac K-Series | Certificates with principal balance | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | 398,127 | 402,400 |
Asset-backed securities issued | Freddie Mac K-Series | Interest-only certificates at fair value | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | 3,056 | 4,562 |
Asset-backed securities issued | HEI | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | $ 218,203 | $ 222,488 |
Number of series | series | 2 | 2 |
Asset-backed securities issued | HEI | Revision of Prior Period, Accounting Standards Update, Adjustment | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | $ (4,098) | $ (10,643) |
Asset-backed securities issued | HEI | Deferred Debt Issuance Costs | ||
Debt Instrument [Line Items] | ||
Unamortized debt discount and deferred debt issuance costs | $ 0 | $ 0 |
Asset-backed securities issued | HEI | Minimum | ||
Debt Instrument [Line Items] | ||
Range of weighted average interest rates, by series (as a percent) | 3.94% | 3.86% |
Asset-backed securities issued | HEI | Maximum | ||
Debt Instrument [Line Items] | ||
Range of weighted average interest rates, by series (as a percent) | 6.77% | 6.70% |
Asset-backed securities issued | HEI | Certificates with principal balance | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | $ 222,301 | $ 233,131 |
Asset-backed securities issued | HEI | Interest-only certificates at fair value | ||
Debt Instrument [Line Items] | ||
ABS Issued, Net | 0 | 0 |
Asset-backed securities issued | CoreVest | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 417,000 | $ 485,000 |
Asset-Backed Securities Issued - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Asset-backed securities issued | Maturity over Five Years | |
Debt Instrument [Line Items] | |
Contractual maturities of ABS (in years) | 5 years |
Debt Obligations, Net - Schedule of Debt Obligations (Details) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2024
USD ($)
facility
|
Dec. 31, 2023
USD ($)
facility
|
|
Debt Instrument [Line Items] | ||
Principal Amount | $ 3,434,945 | $ 3,249,158 |
Carrying Value of Collateral | 3,700,905 | 3,405,564 |
Carrying Value | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 3,414,626 | $ 3,239,123 |
Short-Term Warehouse Facilities and Other | Residential consumer loan warehouse facilities | Facilities | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 6 | 4 |
Principal Amount | $ 886,801 | $ 796,537 |
Facility Capacity | $ 1,650,000 | $ 1,150,000 |
Weighted Average Interest Rate (as percent) | 7.21% | 7.27% |
Carrying Value of Collateral | $ 957,143 | $ 907,742 |
Short-Term Warehouse Facilities and Other | Residential consumer loan warehouse facilities | Facilities | Carrying Value | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 886,802 | $ 796,537 |
Short-Term Warehouse Facilities and Other | Residential investor loan warehouse facilities | Facilities | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 1 | 2 |
Principal Amount | $ 5,931 | $ 71,851 |
Facility Capacity | $ 350,000 | $ 455,000 |
Weighted Average Interest Rate (as percent) | 7.39% | 8.14% |
Carrying Value of Collateral | $ 7,377 | $ 95,225 |
Short-Term Warehouse Facilities and Other | Residential investor loan warehouse facilities | Facilities | Carrying Value | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 5,931 | $ 71,719 |
Short-Term Warehouse Facilities and Other | Real estate securities repurchase facilities | Facilities | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 5 | 3 |
Principal Amount | $ 87,924 | $ 82,622 |
Facility Capacity | $ 0 | $ 0 |
Weighted Average Interest Rate (as percent) | 6.67% | 7.01% |
Carrying Value of Collateral | $ 123,289 | $ 122,110 |
Short-Term Warehouse Facilities and Other | Real estate securities repurchase facilities | Facilities | Carrying Value | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 87,924 | $ 82,622 |
Short-Term Warehouse Facilities and Other | Residential MSR warehouse facility | Facilities | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 1 | 1 |
Principal Amount | $ 45,645 | $ 47,858 |
Facility Capacity | $ 50,000 | $ 50,000 |
Weighted Average Interest Rate (as percent) | 8.59% | 8.60% |
Carrying Value of Collateral | $ 86,152 | $ 76,560 |
Short-Term Warehouse Facilities and Other | Residential MSR warehouse facility | Facilities | Carrying Value | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 45,645 | $ 47,858 |
Short-Term Warehouse Facilities and Other | HEI warehouse facility | Facilities | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 1 | 1 |
Principal Amount | $ 103,446 | $ 122,659 |
Facility Capacity | $ 150,000 | $ 150,000 |
Weighted Average Interest Rate (as percent) | 9.85% | 9.89% |
Carrying Value of Collateral | $ 212,422 | $ 237,973 |
Short-Term Warehouse Facilities and Other | HEI warehouse facility | Facilities | Carrying Value | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 103,446 | $ 122,659 |
Short-Term Warehouse Facilities and Other | Servicer advance financing | Servicer advance financing | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 1 | 1 |
Principal Amount | $ 146,110 | $ 154,369 |
Facility Capacity | $ 240,000 | $ 240,000 |
Weighted Average Interest Rate (as percent) | 7.69% | 7.71% |
Carrying Value of Collateral | $ 227,363 | $ 225,345 |
Short-Term Warehouse Facilities and Other | Servicer advance financing | Servicer advance financing | Carrying Value | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 145,785 | $ 153,654 |
Recourse Subordinate Securities Financings: | Sequoia securities | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 1 | 1 |
Principal Amount | $ 121,123 | $ 124,552 |
Weighted Average Interest Rate (as percent) | 7.21% | 7.21% |
Carrying Value of Collateral | $ 183,922 | $ 175,096 |
Recourse Subordinate Securities Financings: | Sequoia securities | Carrying Value | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 121,123 | $ 124,552 |
Recourse Subordinate Securities Financings: | CAFL securities 1 | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 1 | 1 |
Principal Amount | $ 97,366 | $ 101,228 |
Weighted Average Interest Rate (as percent) | 7.21% | 5.71% |
Carrying Value of Collateral | $ 128,526 | $ 124,793 |
Recourse Subordinate Securities Financings: | CAFL securities 1 | Carrying Value | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 97,366 | $ 101,228 |
Recourse Subordinate Securities Financings: | CAFL securities 2 | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 1 | 1 |
Principal Amount | $ 52,954 | $ 57,982 |
Weighted Average Interest Rate (as percent) | 4.75% | 4.75% |
Carrying Value of Collateral | $ 116,425 | $ 112,813 |
Recourse Subordinate Securities Financings: | CAFL securities 2 | Carrying Value | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 52,954 | $ 57,982 |
Long-Term Residential Investor Facilities | Long-Term Residential Investor Facilities | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 6 | 6 |
Principal Amount | $ 991,843 | $ 1,023,384 |
Facility Capacity | $ 2,175,000 | $ 2,350,000 |
Weighted Average Interest Rate (as percent) | 8.53% | 8.14% |
Carrying Value of Collateral | $ 1,360,667 | $ 1,327,907 |
Long-Term Residential Investor Facilities | Long-Term Residential Investor Facilities | Carrying Value | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 989,939 | $ 1,021,708 |
Corporate Debt: | Promissory notes | Facilities | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 3 | 3 |
Principal Amount | $ 14,887 | $ 16,063 |
Facility Capacity | $ 0 | |
Weighted Average Interest Rate (as percent) | 7.05% | 6.97% |
Carrying Value of Collateral | $ 0 | $ 0 |
Corporate Debt: | Promissory notes | Carrying Value | Facilities | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 14,887 | $ 16,063 |
Corporate Debt: | $250 Million Facility | Facilities | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 1 | |
Principal Amount | $ 125,000 | |
Facility Capacity | $ 250,000 | |
Weighted Average Interest Rate (as percent) | 10.35% | |
Carrying Value of Collateral | $ 297,619 | |
Corporate Debt: | $250 Million Facility | Carrying Value | Facilities | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 118,327 | |
Corporate Debt: | 5.625% convertible senior notes | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 1 | 1 |
Principal Amount | $ 107,339 | $ 142,977 |
Weighted Average Interest Rate (as percent) | 5.625% | 5.625% |
Corporate Debt: | 5.625% convertible senior notes | Carrying Value | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 107,339 | $ 142,558 |
Corporate Debt: | 5.75% exchangeable senior notes | Exchangeable Senior Notes | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 1 | 1 |
Principal Amount | $ 156,666 | $ 156,666 |
Weighted Average Interest Rate (as percent) | 5.75% | 5.75% |
Corporate Debt: | 5.75% exchangeable senior notes | Carrying Value | Exchangeable Senior Notes | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 155,557 | $ 155,138 |
Corporate Debt: | 7.75% convertible senior notes | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 1 | 1 |
Principal Amount | $ 207,410 | $ 210,910 |
Weighted Average Interest Rate (as percent) | 7.75% | 7.75% |
Corporate Debt: | 7.75% convertible senior notes | Carrying Value | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 203,214 | $ 206,032 |
Corporate Debt: | Trust preferred securities and subordinated notes | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 2 | 2 |
Principal Amount | $ 139,500 | $ 139,500 |
Weighted Average Interest Rate (as percent) | 7.84% | 7.90% |
Corporate Debt: | Trust preferred securities and subordinated notes | Carrying Value | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 138,836 | $ 138,813 |
Corporate Debt: | 9.125% Senior Notes | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 1 | |
Principal Amount | $ 60,000 | |
Weighted Average Interest Rate (as percent) | 9.125% | |
Corporate Debt: | 9.125% Senior Notes | Carrying Value | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 57,677 | |
Corporate Debt: | 9.0% Senior Notes | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Number of Facilities or Issuances | facility | 1 | |
Principal Amount | $ 85,000 | |
Weighted Average Interest Rate (as percent) | 9.00% | |
Corporate Debt: | 9.0% Senior Notes | Carrying Value | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 81,874 |
Debt Obligations, Net -Narrative (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024
USD ($)
|
Jul. 31, 2024
USD ($)
|
Jun. 30, 2024
USD ($)
|
Jan. 31, 2024
USD ($)
|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2024
USD ($)
loan
facility
|
Jun. 30, 2023
facility
|
Dec. 31, 2023
USD ($)
facility
|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Debt Instrument [Line Items] | ||||||||||
Principal Amount | $ 3,434,945 | $ 3,434,945 | $ 3,434,945 | $ 3,434,945 | $ 3,249,158 | |||||
Riverbend Funding, LLC | Corporate Debt: | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, convertible, number of equity instruments | loan | 3 | |||||||||
Minimum | Riverbend Funding, LLC | Corporate Debt: | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate (as a percentage) | 6.00% | 6.00% | 6.00% | 6.00% | ||||||
Maximum | Riverbend Funding, LLC | Corporate Debt: | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate (as a percentage) | 8.00% | 8.00% | 8.00% | 8.00% | ||||||
Residential consumer loan warehouse facilities | Redwood | Short-Term Warehouse Facilities and Other | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of Facilities or Issuances | facility | 8 | |||||||||
Borrowing capacity | $ 1,850,000 | $ 1,850,000 | $ 1,850,000 | $ 1,850,000 | ||||||
Residential investor loan warehouse facilities | Redwood | Short-Term Warehouse Facilities and Other | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of Facilities or Issuances | facility | 7 | |||||||||
Borrowing capacity | $ 2,530,000 | 2,530,000 | 2,530,000 | $ 2,530,000 | ||||||
Recourse Subordinate Securities Financing Receivable | Redwood | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, weighted average interest rate, over time | 4.21% | |||||||||
Recourse Subordinate Securities Financing Receivable | Redwood | Affiliated Entity | CAFL | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, weighted average interest rate, over time | 4.75% | 4.21% | ||||||||
Recourse Subordinate Securities Financing Receivable | Redwood | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repurchased debt instrument, face amount | $ 205,000 | |||||||||
Interest rate (as percent) | 8.50% | |||||||||
Recourse Subordinate Securities Financing Receivable | Redwood | October 2022 through September 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, weighted average interest rate, over time | 5.71% | |||||||||
Recourse Subordinate Securities Financing Receivable | Redwood | October 2023 through September 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, weighted average interest rate, over time | 7.21% | |||||||||
Recourse Subordinate Securities Financing Receivable | Redwood | March 2023 through February 2024 | Affiliated Entity | CAFL | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, weighted average interest rate, over time | 5.71% | |||||||||
Recourse Subordinate Securities Financing Receivable | Redwood | March 2024 through February 2025 | Affiliated Entity | CAFL | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, weighted average interest rate, over time | 7.21% | |||||||||
Recourse Subordinate Securities Financing Receivable | Redwood | July 2024 through June 2025 | Affiliated Entity | CAFL | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, weighted average interest rate, over time | 6.25% | |||||||||
Recourse Subordinate Securities Financing Receivable | Redwood | July 2025 to June 2026 | Affiliated Entity | CAFL | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, weighted average interest rate, over time | 7.75% | |||||||||
Corporate Debt: | $250 Million Facility | Facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of Facilities or Issuances | facility | 1 | |||||||||
Borrowing capacity | $ 250,000 | 250,000 | 250,000 | $ 250,000 | ||||||
Principal Amount | $ 125,000 | $ 125,000 | $ 125,000 | $ 125,000 | ||||||
Range of weighted average interest rates, by series (as a percent) | 10.35% | 10.35% | 10.35% | 10.35% | ||||||
Corporate Debt: | 9.0% Senior Notes | Unsecured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of Facilities or Issuances | facility | 1 | |||||||||
Principal Amount | $ 85,000 | $ 85,000 | $ 85,000 | $ 85,000 | ||||||
Range of weighted average interest rates, by series (as a percent) | 9.00% | 9.00% | 9.00% | 9.00% | ||||||
Other Recourse Financing Facility | Corporate Debt: | Facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit term | 2 years | |||||||||
Line of credit, length of extension option | 1 year | |||||||||
9.125% Senior Notes Due 2029 | Corporate Debt: | Unsecured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal Amount | $ 60,000 | |||||||||
Debt Instrument interest rate (as a percent) | 9.125% | |||||||||
Redemption price | 100.00% | 100.00% | ||||||||
Convertible Senior Notes Due July 2024 | Corporate Debt: | Convertible Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of Convertible Debt | $ 9,000 | $ 36,000 | ||||||||
7.75% convertible senior notes | Corporate Debt: | Convertible Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument interest rate (as a percent) | 7.75% | 7.75% | 7.75% | 7.75% | ||||||
Repayments of Convertible Debt | $ 4,000 | |||||||||
Exchangeable Senior Notes Due 2027 | Corporate Debt: | Convertible Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Gain on extinguishment of debt | $ 100 |
Commitments and Contingencies - Future Lease Commitments (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
2024 (6 months) | $ 2,224 | |
2025 | 3,687 | |
2026 | 3,520 | |
2027 | 2,588 | |
2028 | 1,122 | |
2029 | 869 | |
Total Lease Commitments | 14,010 | |
Less: Imputed interest | (1,354) | |
Operating lease liabilities | $ 12,656 | $ 14,725 |
Commitments and Contingencies - Additional Information (Details) |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024
USD ($)
lease
repurchase_request
|
Mar. 31, 2024
USD ($)
|
Jun. 30, 2024
USD ($)
lease
repurchase_request
|
Mar. 31, 2024
USD ($)
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2024
USD ($)
lease
loan
repurchase_request
|
Jun. 30, 2023
USD ($)
loan
repurchase_request
|
Dec. 31, 2023
USD ($)
|
|||
Loss Contingencies [Line Items] | ||||||||||
Lessee, number of leases | lease | 8 | 8 | 8 | |||||||
Present value of remaining lease payments | $ 14,010,000 | $ 14,010,000 | $ 14,010,000 | |||||||
Operating lease expense | $ 2,000,000 | $ 3,000,000 | ||||||||
Lessee, number of office leases | lease | 0 | 0 | 0 | |||||||
Lease term | 1 year | 1 year | 1 year | |||||||
Operating lease liabilities | $ 12,656,000 | $ 12,656,000 | $ 12,656,000 | $ 14,725,000 | ||||||
Operating lease liability, statement of financial position [Extensible List] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities | |||||||
Operating lease right-of-use assets | $ 10,621,000 | $ 10,621,000 | $ 10,621,000 | 12,532,000 | ||||||
Operating lease right-of-use asset, statement of financial position [Extensible List] | Other assets | Other assets | Other assets | |||||||
Weighted average remaining lease term | 4 years | 4 years | 4 years | |||||||
Discount rate (as a percent) | 5.30% | 5.30% | 5.30% | |||||||
Derivative liabilities | [1] | $ 5,954,000 | $ 5,954,000 | $ 5,954,000 | 33,828,000 | |||||
Gain (loss) on market valuation adjustments | 29,839,000 | $ 6,324,000 | 73,859,000 | 17,594,000 | ||||||
Residential repurchase reserve | 3,631,000 | 3,631,000 | 3,631,000 | 4,700,000 | ||||||
Residential loans repurchase (reversal) provision | 1,000,000 | $ 1,000,000 | ||||||||
Total Residential Investor Loans | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Residential repurchase reserve | $ 200,000 | $ 200,000 | $ 200,000 | 0 | ||||||
Number of residential repurchase requests (in repurchase requests) | repurchase_request | 10 | 3 | ||||||||
Number of loans repurchased | loan | 1 | 12 | ||||||||
Number of repurchase requests outstanding | repurchase_request | 2 | 2 | 2 | |||||||
Repurchase Reserves | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Residential repurchase reserve | $ 3,000,000 | $ 3,000,000 | $ 3,000,000 | $ 5,000,000 | ||||||
Number of residential repurchase requests (in repurchase requests) | repurchase_request | 2 | 1 | ||||||||
Number of loans repurchased | loan | 2 | 5 | ||||||||
CPP Joint Venture, Residential Investor Bridge and Term Loans | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Amount committed | $ 100,000,000 | |||||||||
Capital contribution | 1,000,000 | |||||||||
Oaktree Joint Venture, Residential Investor Bridge and Term Loans | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Capital contribution | $ 5,000,000 | $ 19,000,000 | ||||||||
Commitment To Fund Residential Investor Bridge Loan | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Commitment to fund loan | 448,000,000 | 448,000,000 | $ 448,000,000 | |||||||
Derivative liabilities | $ 2,000,000 | 2,000,000 | 2,000,000 | |||||||
Gain (loss) on market valuation adjustments | $ (400,000) | $ (1,000,000) | ||||||||
|
Equity - Changes to Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | $ 1,224,163 | $ 1,137,680 | $ 1,202,693 | $ 1,083,985 |
Total other comprehensive income | 1,569 | 945 | 10,625 | 6,777 |
Balance at End of Period | 1,220,738 | 1,124,138 | 1,220,738 | 1,124,138 |
Available-for-Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | 18,246 | 8,249 | 10,219 | 3,435 |
Other comprehensive income before reclassifications | 1,054 | (688) | 9,710 | 4,319 |
Amounts reclassified from other accumulated comprehensive income (loss) | (514) | 604 | (1,143) | 411 |
Total other comprehensive income | 540 | (84) | 8,567 | 4,730 |
Balance at End of Period | 18,786 | 8,165 | 18,786 | 8,165 |
Interest Rate Agreements Accounted for as Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (67,147) | (71,285) | (68,176) | (72,303) |
Other comprehensive income before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from other accumulated comprehensive income (loss) | 1,029 | 1,029 | 2,058 | 2,047 |
Total other comprehensive income | 1,029 | 1,029 | 2,058 | 2,047 |
Balance at End of Period | $ (66,118) | $ (70,256) | $ (66,118) | $ (70,256) |
Equity - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Investment fair value changes, net | $ 1,098 | $ (13,517) | $ 22,935 | $ (17,909) |
Loss (gain) on sale of AFS securities | 0 | (1,056) | (409) | (1,054) |
Amortization of deferred loss | 200,124 | 152,885 | 380,654 | 304,964 |
Net income before provision for income taxes | 20,458 | 2,942 | 51,243 | 6,439 |
Amount Reclassified From Accumulated Other Comprehensive Loss | Available-for-Sale Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Investment fair value changes, net | (514) | 71 | (1,143) | 99 |
Loss (gain) on sale of AFS securities | 0 | 533 | 0 | 312 |
Net income before provision for income taxes | (514) | 604 | (1,143) | 411 |
Amount Reclassified From Accumulated Other Comprehensive Loss | Interest Rate Agreements Accounted for as Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of deferred loss | 1,029 | 1,029 | 2,058 | 2,047 |
Net income before provision for income taxes | $ 1,029 | $ 1,029 | $ 2,058 | $ 2,047 |
Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jan. 31, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Stockholders Equity Note [Line Items] | |||||||
Preferred stock, issued (in shares) | 2,800,000 | 2,800,000 | 2,800,000 | ||||
Gross proceeds from issuance of preferred stock | $ 0 | $ 66,923 | |||||
Preferred stock dividends declared (in dollars per share) | $ 0.6250 | $ 0.625 | $ 1.2500 | $ 1.22917 | |||
Dividends payable | $ 1,478 | $ 1,478 | |||||
Strike price (in dollars per share) | $ 7.76 | ||||||
Warrants issuance value | $ 800 | ||||||
First Tranche Warrants | |||||||
Stockholders Equity Note [Line Items] | |||||||
Warrants issued (in shares) | 1,974,905 | ||||||
Second Tranche Warrants | |||||||
Stockholders Equity Note [Line Items] | |||||||
Warrants issued (in shares) | 4,608,112 | ||||||
Series A Preferred Stock | |||||||
Stockholders Equity Note [Line Items] | |||||||
Preferred stock, issued (in shares) | 2,800,000 | ||||||
Sale of stock, percentage of ownership before transaction (in percent) | 10.00% | ||||||
Gross proceeds from issuance of preferred stock | $ 70,000 | ||||||
Net proceeds from issuance of stock | $ 67,000 | ||||||
Preferred stock, dividend rate (in percent) | 10.00% | ||||||
Preferred stock, redemption price per share (in dollars per share) | $ 25.00 | ||||||
Spread on treasury rate (as a percent) | 6.278% | ||||||
At The Market Offerings | Common Stock | |||||||
Stockholders Equity Note [Line Items] | |||||||
Issuance of stock (in shares) | 0 | ||||||
Remaining capacity | $ 50,000 | $ 50,000 |
Earnings Per Common Share - Schedule of Basic and Diluted Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Basic Earnings per Common Share: | ||||
Net income available to common stockholders | $ 13,777 | $ 1,115 | $ 42,289 | $ 4,316 |
Less: Dividends and undistributed earnings allocated to participating securities | (985) | (876) | (2,028) | (2,280) |
Undistributed Earnings, Basic, Total | $ 12,792 | $ 239 | $ 40,261 | $ 2,036 |
Basic weighted average common shares outstanding (in shares) | 132,115,854 | 114,051,017 | 131,843,100 | 113,830,347 |
Basic earnings per common share (in dollars per share) | $ 0.10 | $ 0 | $ 0.31 | $ 0.02 |
Diluted Earnings per Common Share: | ||||
Net income available to common stockholders | $ 13,777 | $ 1,115 | $ 42,289 | $ 4,316 |
Less: Dividends and undistributed earnings allocated to participating securities | (985) | (876) | (2,028) | (2,280) |
Net income available to common stockholders | $ 12,792 | $ 239 | $ 40,261 | $ 2,036 |
Diluted weighted average common shares outstanding (in shares) | 132,123,702 | 114,445,262 | 131,847,024 | 114,255,292 |
Net effect of dilutive equity awards (in shares) | 7,848 | 394,245 | 3,924 | 424,945 |
Net effect of assumed convertible notes conversion to common shares (in shares) | 0 | 0 | 0 | 0 |
Diluted earnings per common share (in dollars per share) | $ 0.10 | $ 0 | $ 0.31 | $ 0.02 |
Earnings Per Common Share - Additional Information (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Convertible Debt Securities | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Securities excluded in the calculation of diluted earnings per share (in shares) | 34,537,361 | 44,712,499 | 35,105,457 | 45,509,857 |
Equity awards | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Securities excluded in the calculation of diluted earnings per share (in shares) | 20,376 | 27,408 | 42,537 | 55,882 |
Equity Compensation Plans - Additional Information (Details) - USD ($) $ in Thousands |
1 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|
Dec. 31, 2020 |
Jun. 30, 2024 |
Dec. 31, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 36,275 | $ 37,605 | |
Weighted average amortization period remaining for equity awards | 2 years | ||
Shares of common stock to be purchased in aggregate for all employees (in shares) | 1,100,000 | ||
Number of shares purchased by employees (in shares) | 805,906 | 763,369 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period (in years) | 4 years | ||
Unvested outstanding stock awards (in shares) | 791,439 | 593,570 | |
Number of stock awards granted (in shares) | 542,719 | ||
Number of stock awards vested (in shares) | 271,010 | ||
Number of stock awards forfeited (in shares) | 73,840 | ||
Deferred Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period (in years) | 4 years | ||
Unvested outstanding stock awards (in shares) | 5,576,627 | 4,821,172 | |
Number of stock awards granted (in shares) | 1,245,295 | ||
Number of stock awards vested (in shares) | 2,603,607 | 2,284,480 | |
Number of stock awards forfeited (in shares) | 111,715 | ||
Stock units distributed (in shares) | 378,125 | ||
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period (in years) | 3 years | ||
Unvested outstanding stock awards (in shares) | 2,598,194 | 3,072,039 | |
Number of stock awards granted (in shares) | 473,845 | 564,975 | |
Redwood Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock available for grant (in shares) | 9,414,568 | 10,211,459 | |
Redwood Incentive Plan | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 4,887 | $ 3,166 | |
Redwood Incentive Plan | Deferred Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | 19,307 | 18,920 | |
Redwood Incentive Plan | Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 11,949 | $ 15,519 |
Equity Compensation Plans - Schedule of Equity Compensation Costs by Award Type (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2024
USD ($)
| |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward] | |
Unrecognized compensations cost at beginning of period | $ 37,605 |
Equity grants | 11,578 |
Grant date fair value adjustment | 0 |
Equity grant forfeitures | (1,754) |
Equity compensation expense | (11,154) |
Unrecognized Compensation Cost at End of Period | 36,275 |
Redwood Incentive Plan | Restricted Stock Units | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward] | |
Unrecognized compensations cost at beginning of period | 3,166 |
Equity grants | 3,522 |
Grant date fair value adjustment | 0 |
Equity grant forfeitures | (607) |
Equity compensation expense | (1,194) |
Unrecognized Compensation Cost at End of Period | 4,887 |
Redwood Incentive Plan | Deferred Stock Units | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward] | |
Unrecognized compensations cost at beginning of period | 18,920 |
Equity grants | 7,790 |
Grant date fair value adjustment | 0 |
Equity grant forfeitures | (1,147) |
Equity compensation expense | (6,256) |
Unrecognized Compensation Cost at End of Period | 19,307 |
Redwood Incentive Plan | Performance Stock Units | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward] | |
Unrecognized compensations cost at beginning of period | 15,519 |
Equity grants | 0 |
Grant date fair value adjustment | 0 |
Equity grant forfeitures | 0 |
Equity compensation expense | (3,570) |
Unrecognized Compensation Cost at End of Period | 11,949 |
Employee Stock Purchase Plan | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward] | |
Unrecognized compensations cost at beginning of period | 0 |
Equity grants | 266 |
Grant date fair value adjustment | 0 |
Equity grant forfeitures | 0 |
Equity compensation expense | (134) |
Unrecognized Compensation Cost at End of Period | $ 132 |
Components of Operating Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Business Acquisition [Line Items] | ||||
Fixed compensation expense | $ 13,073 | $ 12,786 | $ 29,330 | $ 28,145 |
Annual variable compensation expense | 4,051 | 3,187 | 6,968 | 7,192 |
Long-term incentive award expense | 7,338 | 6,237 | 13,825 | 14,179 |
Systems and consulting | 3,254 | 2,854 | 6,455 | 5,966 |
Office costs | 2,076 | 2,289 | 4,158 | 4,329 |
Accounting and legal | 789 | 1,176 | 2,006 | 2,095 |
Corporate costs | 985 | 957 | 1,857 | 1,886 |
Other | 1,718 | 1,319 | 3,254 | 2,568 |
Total General and Administrative Expenses | 33,284 | 30,805 | 67,853 | 66,360 |
Portfolio Management Costs | 4,864 | 3,100 | 8,461 | 6,610 |
Commissions | 1,571 | 1,023 | 2,452 | 1,851 |
Underwriting costs | 1,039 | 219 | 1,721 | 461 |
Transfer and holding costs | 1,054 | 202 | 1,728 | 421 |
Total Loan Acquisition Costs | 3,664 | 1,444 | 5,901 | 2,733 |
Amortization of purchase-related intangible assets | 2,202 | 3,107 | 5,007 | 6,214 |
Other | 2,975 | 1,868 | 3,531 | 2,445 |
Total Other Expenses | 5,177 | 4,975 | 8,538 | 8,659 |
Total Operating Expenses | 46,989 | 40,324 | 90,753 | 84,362 |
Severance and transition-related expenses | 2,000 | 1,000 | ||
Equity amortization expense | 1,000 | 1,000 | ||
Settlement in Common Stock | ||||
Business Acquisition [Line Items] | ||||
Long-term incentive award expense | 5,000 | 4,000 | 11,000 | 10,000 |
Settlement in Cash | ||||
Business Acquisition [Line Items] | ||||
Long-term incentive award expense | $ 2,000 | $ 1,000 | $ 3,000 | $ 3,000 |
Taxes - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ 4,924 | $ 69 | $ 5,447 | $ (1,054) |
Deferred tax asset valuation allowance | $ 117,000 | 117,000 | ||
Valuation allowance, deferred tax asset, Amount | $ 40,000 |
Taxes - Schedule of Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details) |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | 21.00% | 21.00% |
State taxes, net of Federal tax effect, as applicable | 1.90% | (0.20%) |
Differences in taxable income (loss) from GAAP income | 0.30% | (4.90%) |
Change in valuation allowance | 0.00% | 0.00% |
REIT GAAP income or loss not subject to federal income tax | (12.60%) | (32.30%) |
Effective Tax Rate | 10.60% | (16.40%) |
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