Residential Loans (Tables) - Residential Loans

6 Months Ended

Jun. 30, 2015

Mortgage Loans on Real Estate [Line Items]

Summary of Classifications and Carrying Value of Loans

The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia entities at June 30, 2015 and December 31, 2014.

June 30, 2015
(In Thousands)	Redwood		Sequoia (1)		Total
Held-for-sale
Fair value - conforming	$	248,157	$	—	$	248,157
Fair value - jumbo	642,466		—		642,466
Lower of cost or fair value	1,458		—		1,458
Held-for-investment
Fair value - Jumbo	1,157,285		1,237,114		2,394,399
Total Residential Loans	$	2,049,366	$	1,237,114	$	3,286,480

December 31, 2014
(In Thousands)	Redwood		Sequoia (1)		Total
Held-for-sale
Fair value - conforming	$	244,714	$	—	$	244,714
Fair value - jumbo	1,096,317		—		1,096,317
Lower of cost or fair value	1,488		—		1,488
Held-for-investment
Fair value - jumbo	581,668		—		581,668
At amortized cost	—		1,474,386		1,474,386
Total Residential Loans	$	1,924,187	$	1,474,386	$	3,398,573

(1) Upon adoption of ASU 2014-13 on January 1, 2015, loans held-for-investment at consolidated Sequoia entities began to be recorded at fair value. See Note 3 for further discussion.

Carrying Value for Loans Held-for-Investment

The following table details the carrying value for residential loans held-for-investment at consolidated Sequoia entities at June 30, 2015 and December 31, 2014.

(In Thousands)	June 30, 2015			December 31, 2014
Principal balance	$	1,343,333		$	1,483,213
Unamortized premium, net	—			12,511
Allowance for loan losses	—			(21,338		)
Valuation adjustment	(106,219		)	—
Carrying value	$	1,237,114		$	1,474,386