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Residential Loans (Tables)
 12 Months Ended
Dec. 31, 2017
Receivables [Abstract]  
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 December 31, 2017 and December 31, 2016.
Table 6.1 – Classifications and Carrying Values of Residential Loans
December 31, 2017
 
 
 
Legacy
 
Sequoia
 
 
(In Thousands)
 
Redwood
 
Sequoia
 
Choice
 
Total
Held-for-sale
 
 
 
 
 
 
 
 
At fair value
 
$
1,427,052

 
$
—

 
$
—

 
$
1,427,052

At lower of cost or fair value
 
893

 
—

 
—

 
893

Total held-for-sale
 
1,427,945

 
—


—

 
1,427,945

Held-for-investment at fair value
 
2,434,386

 
632,817

 
620,062

 
3,687,265

Total Residential Loans
 
$
3,862,331

 
$
632,817


$
620,062

 
$
5,115,210

December 31, 2016
 
 
 
Legacy
 
Sequoia
 
 
(In Thousands)
 
Redwood
 
Sequoia
 
Choice
 
Total
Held-for-sale
 
 
 
 
 
 
 
 
At fair value
 
$
834,193

 
$
—

 
$
—

 
$
834,193

At lower of cost or fair value
 
1,206

 
—

 
—

 
1,206

Total held-for-sale
 
835,399

 
—


—

 
835,399

Held-for-investment at fair value
 
2,261,016

 
791,636

 
—

 
3,052,652

Total Residential Loans
 
$
3,096,415

 
$
791,636


$
—

 
$
3,888,051
Geographic Concentration of Loans Recorded on Consolidated Balance Sheet
The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2017 and December 31, 2016.
Table 6.2 – Geographic Concentration of Residential Loans
 
 
December 31, 2017
Geographic Concentration
(by Principal)
 
Held-for-Sale
 
Held-for-
Investment at Legacy Sequoia
 
Held-for-
Investment at Sequoia Choice
 
Held-for-
Investment at
FVO
California
 
35
%
 
18
%
 
39
%
 
45
%
Washington
 
9
%
 
2
%
 
7
%
 
5
%
Texas
 
7
%
 
5
%
 
10
%
 
9
%
Florida
 
4
%
 
13
%
 
4
%
 
5
%
Georgia
 
2
%
 
5
%
 
3
%
 
1
%
New York
 
2
%
 
9
%
 
3
%
 
4
%
Other states (none greater than 5%)
 
41
%
 
48
%
 
34
%
 
31
%
Total
 
100
%
 
100
%

100
%
 
100
%
 
 
December 31, 2016
Geographic Concentration
(by Principal)
 
Held-for-Sale
 
Held-for-
Investment at Legacy Sequoia
 
Held-for-
Investment at Sequoia Choice
 
Held-for-
Investment at
FVO
California
 
40
%
 
18
%
 
—
%
 
42
%
Texas
 
9
%
 
6
%
 
—
%
 
10
%
Washington
 
8
%
 
2
%
 
—
%
 
4
%
Florida
 
3
%
 
14
%
 
—
%
 
5
%
Georgia
 
2
%
 
5
%
 
—
%
 
1
%
New York
 
2
%
 
8
%
 
—
%
 
4
%
Other states (none greater than 5%)
 
36
%
 
47
%
 
—
%
 
34
%
Total
 
100
%
 
100
%

—
%
 
100
%
Loan Product Type and Accompanying Loan Characteristics of Loans
The following table displays the loan product type and accompanying loan characteristics of residential loans recorded on our consolidated balance sheets at December 31, 2017 and December 31, 2016.
Table 6.3 – Product Types and Characteristics of Residential Loans
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan Balance
 
 
Number of
Loans
 
Interest
 Rate(1)
 
Maturity
Date
 
Total
Principal
 
30-89
Days
DQ
 
90+
Days
DQ
Held-for-Investment at Redwood:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hybrid ARM loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
—

to
$250
 
 
7

 
3.50
%
to
3.88%
 
2043-08
-
2044-01
 
$
1,589

 
$
438

 
$
—

 
$
251

to
$500
 
 
43

 
2.63
%
to
4.88%
 
2043-07
-
2047-10
 
16,703

 
566

 
—

 
$
501

to
$750
 
 
87

 
2.88
%
to
5.13%
 
2040-09
-
2047-11
 
55,709

 
1,226

 
—

 
$
751

to
$1,000
 
 
82

 
2.88
%
to
6.00%
 
2043-12
-
2047-11
 
71,819

 
984

 
—

 
 
over
$1,000
 
 
40

 
3.00
%
to
5.00%
 
2040-10
-
2047-11
 
57,641

 
—

 
—

 
 
 
 
 
 
259

 
 
 
 
 
 
 
 
 
203,461

 
3,214

 
—

Fixed loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
—

to
$250
 
 
34

 
3.13
%
to
5.08%
 
2022-10
-
2046-02
 
6,758

 
—

 
—

 
$
251

to
$500
 
 
681

 
2.80
%
to
6.13%
 
2028-02
-
2047-12
 
296,950

 
1,380

 
—

 
$
501

to
$750
 
 
1,261

 
2.75
%
to
6.75%
 
2027-09
-
2047-12
 
777,103

 
3,818

 
—

 
$
751

to
$1,000
 
 
649

 
2.75
%
to
5.00%
 
2027-07
-
2047-12
 
559,426

 
2,566

 
—

 


over
$1,000
 
 
408

 
2.80
%
to
5.00%
 
2030-11
-
2048-01
 
564,295

 
—

 
—

 
 
 
 
 
 
3,033

 
 
 
 
 
 
 
 
 
2,204,532

 
7,764

 
—

Total HFI at Redwood:
 
3,292

 
 
 
 
 
 
 
 
 
$
2,407,993

 
$
10,978

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-for-Investment at Legacy Sequoia:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ARM loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
—

to
$250
 
 
2,324

 
1.25
%
to
5.16%
 
2019-02
-
2035-11
 
$
253,438

 
$
7,436

 
$
7,284

 
$
251

to
$500
 
 
541

 
1.00
%
to
5.63%
 
2021-03
-
2036-05
 
189,360

 
9,082

 
9,178

 
$
501

to
$750
 
 
151

 
1.63
%
to
4.00%
 
2024-05
-
2035-09
 
91,244

 
1,995

 
2,589

 
$
751

to
$1,000
 
 
76

 
1.38
%
to
3.38%
 
2022-01
-
2035-07
 
65,276

 
1,790

 
1,725

 


over
$1,000
 
 
53

 
1.00
%
to
4.63%
 
2027-03
-
2036-05
 
83,393

 
—

 
4,040

 
 
 
 
 
 
3,145

 
 
 
 
 
 
 
 
 
682,711

 
20,303

 
24,816

Hybrid ARM loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
—

to
$250
 
 
4

 
3.25
%
to
3.75%
 
2033-08
-
2034-06
 
530

 
—

 
—

 
$
251

to
$500
 
 
17

 
2.63
%
to
3.75%
 
2033-07
-
2034-12
 
6,170

 
—

 
—

 
$
501

to
$750
 
 
11

 
3.38
%
to
3.75%
 
2033-07
-
2034-11
 
7,091

 
—

 
641

 


over
$1,000
 
 
1

 
3.75
%
to
3.75%
 
2033-09
-
2033-09
 
1,420

 
—

 
—

 
 
 
 
 
 
33

 
 
 
 
 
 
 
 
 
15,211

 
—


641

Total HFI at Legacy Sequoia:
 
3,178

 
 
 
 
 
 
 
 
 
$
697,922

 
$
20,303

 
$
25,457

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-for-Investment at Sequoia Choice:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
$
0

to
$250
 
 
4

 
2.75
%
to
4.75%
 
2043-05
-
2047-07
 
$
641

 
$
—

 
$
—

 
$
251

to
$500
 
 
85

 
3.13
%
to
5.75%
 
2042-11
-
2047-10
 
38,900

 
486

 
—

 
$
501

to
$750
 
 
388

 
3.13
%
to
6.25%
 
2037-02
-
2047-11
 
240,538

 
672

 
—

 
$
751

to
$1,000
 
 
239

 
3.25
%
to
6.50%
 
2043-05
-
2047-10
 
210,235

 
—

 
—

 


over
$1,000
 
 
90

 
3.13
%
to
5.88%
 
2045-01
-
2047-10
 
114,433

 
—

 
—

Total HFI at Sequoia Choice:
 
806

 
 
 
 
 
 
 
 
 
$
604,747

 
$
1,158

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-for-Sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ARM loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
58

to
$290
 
 
3

 
1.50
%
to
3.00%
 
2032-11
-
2033-10
 
$
444

 
$
—

 
$
—

Hybrid ARM loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
443

to
$2,000
 
 
93

 
2.88
%
to
4.00%
 
2044-08
-
2048-01
 
78,884

 
—

 
—

Fixed loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
132

to
$1,950
 
 
1,917

 
2.88
%
to
6.25%
 
2029-05
-
2048-01
 
1,329,851

 
1,913

 
459

Total Held-for-Sale
 
2,013

 
 
 
 
 
 
 
 
 
$
1,409,179

 
$
1,913

 
$
459

December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan Balance
 
 
Number of
Loans
 
Interest
 Rate(1)
 
Maturity
Date
 
Total
Principal
 
30-89
Days
DQ
 
90+
Days
DQ
Held-for-Investment at Redwood:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hybrid ARM loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
251

to
$500
 
 
1

 
3.63
%
to
3.63%
 
2044-07
-
2044-07
 
$
264

 
$
—

 
$
—

 
$
501

to
$750
 
 
4

 
2.88
%
to
4.65%
 
2040-09
-
2045-10
 
2,722

 
—

 
—

 
$
751

to
$1,000
 
 
2

 
3.50
%
to
4.00%
 
2045-09
-
2045-10
 
1,726

 
—

 
—

 


over
$1,000
 
 
4

 
3.00
%
to
4.20%
 
2040-10
-
2045-10
 
5,545

 
—

 
—

 
 
 
 
 
 
11

 
 
 
 
 
 
 
 
 
10,257

 
—

 
—

Fixed loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
—

to
$250
 
 
26

 
3.67
%
to
5.08%
 
2039-04
-
2045-10
 
4,643

 
—

 
237

 
$
251

to
$500
 
 
633

 
2.80
%
to
5.13%
 
2028-02
-
2046-12
 
278,560

 
264

 
—

 
$
501

to
$750
 
 
1,306

 
2.75
%
to
6.25%
 
2027-09
-
2046-12
 
807,714

 
2,803

 
—

 
$
751

to
$1,000
 
 
690

 
2.75
%
to
5.63%
 
2027-07
-
2046-12
 
597,002

 
—

 
—

 


over
$1,000
 
 
402

 
2.80
%
to
5.00%
 
2027-04
-
2047-01
 
535,621

 
1,232

 
—

 
 
 
 
 
 
3,057

 
 
 
 
 
 
 
 
 
2,223,540

 
4,299

 
237

Total HFI at Redwood:
 
3,068

 
 
 
 
 
 
 
 
 
$
2,233,797

 
$
4,299

 
$
237

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-for-Investment at Legacy Sequoia:
 
 
 
 
 
 
 
 
 
 
 
 
 
ARM loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
—

to
$250
 
 
2,623

 
0.63
%
to
5.60%
 
2019-02
-
2035-11
 
$
297,646

 
$
9,158

 
$
7,410

 
$
251

to
$500
 
 
694

 
0.25
%
to
5.75%
 
2019-12
-
2036-05
 
241,253

 
9,177

 
10,059

 
$
501

to
$750
 
 
203

 
0.88
%
to
3.89%
 
2024-05
-
2035-09
 
121,919

 
5,812

 
5,069

 
$
751

to
$1,000
 
 
100

 
0.63
%
to
3.00%
 
2022-01
-
2035-07
 
86,988

 
2,750

 
3,322

 


over
$1,000
 
 
78

 
0.25
%
to
3.75%
 
2027-03
-
2036-05
 
121,484

 
4,790

 
4,306

 
 
 
 
 
 
3,698

 
 
 
 
 
 
 
 
 
869,290

 
31,687

 
30,166

Hybrid ARM loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
—

to
$250
 
 
4

 
3.00
%
to
3.00%
 
2033-09
-
2034-06
 
453

 
—

 
—

 
$
251

to
$500
 
 
18

 
2.63
%
to
3.13%
 
2033-07
-
2034-12
 
6,516

 
—

 
—

 
$
501

to
$750
 
 
13

 
2.75
%
to
3.13%
 
2033-07
-
2034-12
 
8,483

 
669

 
—

 
$
751

to
$1,000
 
 
1

 
3.13
%
to
3.13%
 
2033-08
-
2033-08
 
751

 
—

 
—

 


over
$1,000
 
 
1

 
3.00
%
to
3.00%
 
2033-09
-
2033-09
 
1,488

 
—

 
—

 
 
 
 
 
 
37

 
 
 
 
 
 
 
 
 
17,691

 
669

 
—

Total HFI at Legacy Sequoia:
 
3,735

 
 
 
 
 
 
 
 
 
$
886,981

 
$
32,356

 
$
30,166

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-for-Sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ARM loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
61

to
$396
 
 
6

 
1.88
%
to
2.75%
 
2033-10
-
2032-11
 
$
882

 
$
—

 
$
300

Hybrid ARM loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
2

to
$1,947
 
 
173

 
2.50
%
to
6.00%
 
2037-06
-
2047-01
 
144,174

 
—

 
—

Fixed loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
404

to
$1,997
 
 
942

 
2.99
%
to
6.25%
 
2026-12
-
2047-01
 
688,329

 
—

 
—

Total Held-for-Sale
 
1,121

 
 
 
 
 
 
 
 
 
$
833,385

 
$
—

 
$
300

(1)
Rate is net of servicing fee for consolidated loans for which we do not own the MSR.