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Mortgage Banking and Investment Activities (Tables)
 6 Months Ended
Jun. 30, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Components of Mortgage Banking Activities, Net
The following table presents the components of mortgage banking and investment activities, net, recorded in our consolidated statements of income for the three and six months ended June 30, 2015 and 2014.
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In Thousands)
 
2015
 
2014
 
2015
 
2014
Residential mortgage banking activities, net:
 
 
 
 
 
 
 
 
Changes in fair value of:
 
 
 
 
 
 
 
 
Residential loans, at fair value (1)
 
$
(2,122
)
 
$
17,575

 
$
18,192

 
$
24,709

Real estate securities (2)
 
—

 
(8,810
)
 
(14,359
)
 
(13,087
)
Risk management derivatives (3)
 
2,752

 
(7,858
)
 
(1,619
)
 
(12,136
)
Hedging allocation (2)
 
2,803

 
—

 
2,803

 
—

Other income, net (4)
 
1,400

 
435

 
2,035

 
790

Total residential mortgage banking activities, net:
 
4,833

 
1,342

 
7,052

 
276

 
 
 
 
 
 
 
 
 
Commercial mortgage banking activities, net:
 
 
 
 
 
 
 
 
Changes in fair value of:
 
 
 
 
 
 
 
 
Commercial loans, at fair value
 
987

 
5,714

 
6,844

 
9,340

Risk management derivatives (3)
 
1,463

 
(816
)
 
(4,750
)
 
(3,619
)
Other fee income
 
164

 
83

 
227

 
93

Total commercial mortgage banking activities, net:
 
2,614

 
4,981

 
2,321

 
5,814

 
 

 

 

 

Investment activities, net
 
 
 
 
 
 
 
 
     Changes in fair value of:
 
 
 
 
 
 
 
 
          Residential loans held-for-investment, at Redwood
 
(5,885
)
 
—

 
(3,907
)
 
—

Real estate securities
 
6,927

 
(186
)
 
7,197

 
(453
)
Net investments in consolidated Sequoia entities
 
(684
)
 
(321
)
 
(1,777
)
 
(464
)
Risk sharing investments
 
228

 
—

 
(702
)
 
—

Risk management derivatives
 
429

 
(3,627
)
 
(944
)
 
(9,354
)
Hedging allocation (2)
 
(2,803
)
 
—

 
(2,803
)
 
—

Total investment activities:
 
(1,788
)
 
(4,134
)
 
(2,936
)
 
(10,271
)
Mortgage banking and investment activities, net
 
$
5,659

 
$
2,189

 
$
6,437

 
$
(4,181
)

(1)
Includes changes in fair value for associated loan purchase and forward sale commitments.
(2)
In the second quarter of 2015, we transferred securities previously utilized as hedges for our mortgage banking segment to our residential investments segment and began to record a hedging allocation between our business segments. See Note 21 for further discussion.
(3)
Represents market valuation changes of derivatives that are used to manage risks associated with our accumulation of residential and commercial loans.
(4)
Amounts in this line item include other fee income from loan acquisitions and the provision for repurchases expense, presented net.