Business Purpose Residential Loans (Tables)

12 Months Ended

Dec. 31, 2019

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 and Freddie Mac SLST entities at December 31, 2019 and December 31, 2018.

Table 6.1 – Classifications and Carrying Values of Residential Loans



December 31, 2019			Legacy		Sequoia		Freddie Mac
(In Thousands)	Redwood		Sequoia		Choice		SLST		Total
Held-for-sale at fair value	$	536,385	$	—	$	—	$	—	$	536,385
Held-for-investment at fair value	2,111,897		407,890		2,291,463		2,367,215		7,178,465
Total Residential Loans	$	2,648,282	$	407,890	$	2,291,463	$	2,367,215	$	7,714,850



December 31, 2018			Legacy		Sequoia		Freddie Mac
(In Thousands)	Redwood		Sequoia		Choice		SLST		Total
Held-for-sale at fair value	$	1,048,801	$	—	$	—	$	—	$	1,048,801
Held-for-investment at fair value	2,383,932		519,958		2,079,382		1,222,669		6,205,941
Total Residential Loans	$	3,432,733	$	519,958	$	2,079,382	$	1,222,669	$	7,254,742

The following table summarizes the classifications and carrying values of the business purpose residential loans owned at Redwood at December 31, 2019 and December 31, 2018.

Table 7.1 – Classifications and Carrying Values of Business Purpose Residential Loans



December 31, 2019	Single-Family Rental				Residential
(In Thousands)	Redwood		CAFL		Bridge		Total
Held-for-sale at fair value	$	331,565	—		$	—	$	331,565
Held-for-investment at fair value	237,620		2,192,552		745,006		3,175,178
Total Business Purpose Residential Loans	$	569,185	$	2,192,552	$	745,006	$	3,506,743



December 31, 2018	Single-Family Rental				Residential
(In Thousands)	Redwood		CAFL		Bridge		Total
Held-for-sale at fair value	$	28,460	$	—	$	—	$	28,460
Held-for-investment at fair value	—		—		112,798		112,798
Total Business Purpose Residential Loans	$	28,460	$	—	$	112,798	$	141,258

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, 2019 and December 31, 2018.

Table 6.2 – Geographic Concentration of Residential Loans



	December 31, 2019
Geographic Concentration (by Principal)	Held-for-Sale		Held-for- Investment at Legacy Sequoia		Held-for- Investment at Sequoia Choice		Held-for-Investment at Freddie Mac SLST		Held-for- Investment at FVO
California	36	%	18	%	35	%	14	%	45	%
Washington	7	%	1	%	7	%	2	%	5	%
Texas	6	%	6	%	9	%	3	%	8	%
Colorado	6	%	3	%	4	%	—	%	4	%
Florida	4	%	14	%	5	%	10	%	5	%
New Jersey	2	%	4	%	2	%	7	%	2	%
New York	1	%	10	%	4	%	10	%	4	%
Other states (none greater than 5%)	38	%	44	%	34	%	54	%	27	%
Total	100	%	100	%	100	%	100	%	100	%



	December 31, 2018
Geographic Concentration (by Principal)	Held-for-Sale		Held-for- Investment at Legacy Sequoia		Held-for- Investment at Sequoia Choice		Held-for-Investment at Freddie Mac SLST		Held-for- Investment at FVO
California	40	%	19	%	39	%	12	%	47	%
Washington	10	%	1	%	7	%	2	%	5	%
Texas	6	%	6	%	8	%	3	%	8	%
Florida	4	%	13	%	4	%	10	%	5	%
New Jersey	2	%	4	%	1	%	7	%	1	%
New York	3	%	10	%	5	%	10	%	3	%
Other states (none greater than 5%)	35	%	47	%	36	%	56	%	31	%
Total	100	%	100	%	100	%	100	%	100	%

The following table presents the geographic concentration of business purpose residential loans recorded on our consolidated balance sheets at December 31, 2019.

Table 7.2 – Geographic Concentration of Business Purpose Residential Loans



	December 31, 2019
Geographic Concentration (by Principal)	Single-Family Rental Held-for-Sale		Single-Family Rental Held-for-Investment at Redwood		Single-Family Rental Held-for-Investment at CAFL		Residential Bridge
Florida	5	%	—	%	8	%	9	%
Texas	19	%	12	%	15	%	3	%
New Jersey	12	%	5	%	11	%	8	%
New York	5	%	1	%	1	%	6	%
California	2	%	1	%	7	%	21	%
Utah	—	%	—	%	—	%	5	%
Georgia	8	%	—	%	5	%	7	%
Alabama	5	%	—	%	4	%	4	%
Arkansas	6	%	—	%	2	%	—	%
Maryland	6	%	—	%	2	%	—	%
Illinois	1	%	—	%	5	%	3	%
Other states (none greater than 5%)	31	%	81	%	40	%	34	%
Total	100	%	100	%	100	%	100	%



	December 31, 2018
Geographic Concentration (by Principal)	Single-Family Rental Held-for-Sale		Single-Family Rental Held-for-Investment at Redwood		Single-Family Rental Held-for-Investment at CAFL		Residential Bridge
Florida	69	%	—	%	—	%	7	%
Texas	14	%	—	%	—	%	—	%
California	—	%	—	%	—	%	79	%
Utah	—	%	—	%	—	%	5	%
Other states (none greater than 5%)	17	%	—	%	—	%	9	%
Total	100	%	—	%	—	%	100	%

The following table presents the geographic concentration of multifamily loans recorded on our consolidated balance sheets at December 31, 2019.

Table 8.1 – Geographic Concentration of Multifamily Loans



Geographic Concentration (by Principal)	December 31, 2019		December 31, 2018
Texas	13	%	9	%
California	11	%	11	%
Florida	10	%	—	%
Arizona	6	%	8	%
Georgia	6	%	6	%
Washington	5	%	—	%
Colorado	5	%	—	%
Other states (none greater than 5%)	44	%	66	%
Total	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, 2019 and December 31, 2018.

Table 6.3 – Product Types and Characteristics of Residential Loans



December 31, 2019
(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	12	3.50	%	to	4.50%	2043-09	-	2046-01	$	2,423	$	—	$	—
	$	251	to	$500	51	3.25	%	to	5.63%	2041-01	-	2048-08	20,781		—		—
	$	501	to	$750	97	2.88	%	to	5.13%	2041-09	-	2048-08	61,708		1,364		—
	$	751	to	$1,000	90	2.88	%	to	6.00%	2043-12	-	2048-08	77,550		1,784		971
			over	$1,000	49	3.00	%	to	5.50%	2040-10	-	2048-09	64,937		1,428		—
					299								227,399		4,576		971
Fixed loans
	$	—	to	$250	38	2.90	%	to	4.80%	2026-02	-	2047-12	6,549		223		—
	$	251	to	$500	676	2.75	%	to	6.00%	2026-01	-	2049-04	287,984		—		—
	$	501	to	$750	1,091	2.80	%	to	6.75%	2026-04	-	2049-05	669,159		2,325		614
	$	751	to	$1,000	519	2.75	%	to	6.63%	2026-01	-	2049-04	447,499		1,895		—
			over	$1,000	317	3.00	%	to	5.88%	2031-04	-	2049-05	414,188		3,202		—
					2,641								1,825,379		7,645		614
Total HFI at Redwood:					2,940								$	2,052,778	$	12,221	$	1,585

Held-for-Investment at Legacy Sequoia:
ARM loans:
	$	—	to	$250	1,685	1.38	%	to	6.00%	2020-01	-	2035-11	$	169,230	$	5,135	$	3,109
	$	251	to	$500	345	1.25	%	to	5.63%	2022-01	-	2036-05	120,261		6,149		3,835
	$	501	to	$750	87	1.63	%	to	4.38%	2027-04	-	2035-02	53,811		3,628		1,211
	$	751	to	$1,000	45	1.63	%	to	4.38%	2027-11	-	2036-03	37,756		827		1,648
			over	$1,000	24	1.63	%	to	4.00%	2027-12	-	2035-04	38,341		—		—
					2,186								419,399		15,739		9,803
Hybrid ARM loans:
	$	—	to	$250	2	4.25	%	to	4.50%	2033-09	-	2033-10	465		—		—
	$	251	to	$500	7	3.63	%	to	5.13%	2033-07	-	2034-06	2,494		—		—
	$	501	to	$750	2	4.50	%	to	4.50%	2033-08	-	2033-08	1,181		—		—
			over	$1,000	1	4.50	%	to	4.50%	2033-09	-	2033-09	1,291		—		—
					12								5,431		—		—
Total HFI at Legacy Sequoia:					2,198								$	424,830	$	15,739	$	9,803

Held-for-Investment at Sequoia Choice:
Fixed loans:
	$	—	to	$250	56	2.75	%	to	5.50%	2038-02	-	2049-07	$	10,743	$	—	$	—
	$	251	to	$500	420	3.13	%	to	6.13%	2037-12	-	2049-09	184,455		2,282		—
	$	501	to	$750	1,528	3.13	%	to	6.75%	2037-02	-	2049-09	940,914		13,020		2,366
	$	751	to	$1,000	835	3.25	%	to	6.50%	2035-04	-	2049-09	719,609		7,856		3,297
			over	$1,000	317	3.50	%	to	5.88%	2038-01	-	2049-09	384,959		1,108		1,093
Total HFI at Sequoia Choice:					3,156								$	2,240,680	$	24,266	$	6,756

Table 6.3 – Product Types and Characteristics of Residential Loans (continued)



December 31, 2019
(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 Freddie Mac SLST:
Fixed loans:
	$	—	to	$250	11,639	2.00	%	to	11.00%	2019-11	-	2059-10	$	1,501,538	$	477,592	$	79,632
	$	251	to	$500	2,805	2.00	%	to	7.75%	2033-08	-	2058-11	894,125		297,732		52,920
	$	501	to	$750	57	2.00	%	to	6.75%	2043-08	-	2058-07	31,350		8,787		2,623
			over	$1,000	1	4.00	%	to	4.00%	2056-03	-	2056-03	1,021		1,021		—
Total HFI at Freddie Mac SLST:					14,502								$	2,428,034	$	785,132	$	135,175

Held-for-Sale:
Hybrid ARM loans
	$	—	to	$250	7	5.20	%	to	7.00%	2047-08		2048-12	$	1,254	$	—	$	—
	$	251	to	$500	1	4.25	%	to	4.25%	2049-08	-	2049-08	432		—		—
	$	501	to	$750	52	3.00	%	to	5.50%	2047-04	-	2049-12	33,611		—		—
	$	751	to	$1,000	33	3.25	%	to	4.88%	2047-04	-	2049-11	28,573		—		—
			over	$1,000	22	3.25	%	to	5.25%	2048-06	-	2049-11	28,013		—		—
					115								91,883		—		—
Fixed loans
	$	—	to	$250	2	3.88	%	to	7.13%	2034-08	-	2049-07	481		—		—
	$	251	to	$500	13	3.63	%	to	6.50%	2048-01	-	2050-01	6,234		—		—
	$	501	to	$750	301	3.20	%	to	5.88%	2034-05	-	2050-01	186,251		—		747
	$	751	to	$1,000	161	3.50	%	to	6.50%	2034-07	-	2050-01	139,786		—		—
			over	$1,000	77	3.20	%	to	5.00%	2034-08	-	2050-01	100,293		1,650		—
					554								433,045		1,650		747
Total Held-for-Sale					669								$	524,928	$	1,650	$	747

Table 6.3 – Product Types and Characteristics of Residential Loans (continued)



December 31, 2018
(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	12	2.88	%	to	4.88%		2043-09	-	2046-01	$	2,190	$	59	$	—
	$	251	to	$500	59	2.63	%	to	5.75%		2043-08	-	2048-08	23,986		—		—
	$	501	to	$750	116	2.88	%	to	5.75%		2043-03	-	2048-08	73,360		692		—
	$	751	to	$1,000	129	2.88	%	to	6.38%		2043-09	-	2048-09	111,879		—		—
			over	$1,000	69	3.00	%	to	5.50%		2040-10	-	2048-10	92,151		1,112		—
					385									303,566		1,863		—
Fixed loans
	$	—	to	$250	36	3.30	%	to	5.08%		2028-11	-	2047-12	6,737		—		—
	$	251	to	$500	679	2.75	%	to	5.75%		2027-09	-	2048-11	292,730		—		—
	$	501	to	$750	1,213	2.75	%	to	6.75%		2027-10	-	2048-11	746,503		1,320		1,224
	$	751	to	$1,000	599	2.75	%	to	6.13%		2027-07	-	2048-11	517,075		903		—
			over	$1,000	384	2.80	%	to	5.88%		2031-04	-	2048-11	518,719		2,000		—
					2,911									2,081,764		4,223		1,224
Total HFI at Redwood:					3,296									$	2,385,330	$	6,086	$	1,224

Held-for-Investment at Legacy Sequoia:
ARM loans:
	$	—	to	$250	1,988	1.25	%	to	5.50%		2019-02	-	2035-11	$	206,490	$	7,179	$	3,952
	$	251	to	$500	424	1.25	%	to	5.63%		2023-05	-	2036-05	148,154		5,989		4,368
	$	501	to	$750	110	1.63	%	to	4.50%		2022-01	-	2035-02	67,471		1,309		1,880
	$	751	to	$1,000	61	1.63	%	to	4.38%		2027-11	-	2036-03	51,918		791		2,561
			over	$1,000	37	1.63	%	to	4.38%		2027-12	-	2036-05	61,710		1,023		1,194
					2,620									535,743		16,291		13,955
Hybrid ARM loans:
	$	—	to	$250	4	4.63	%	to	5.00%		2033-08	-	2034-06	769		—		—
	$	251	to	$500	10	2.63	%	to	4.88%		2033-07	-	2034-06	3,675		—		—
	$	501	to	$750	6	4.38	%	to	5.00%		2033-08	-	2034-11	3,667		—		—
			over	$1,000	1	4.88	%	to	4.88%		2033-09	-	2033-09	1,355		—		—
					21									9,466		—		—
Total HFI at Legacy Sequoia:					2,641									$	545,209	$	16,291	$	13,955

Held-for-Investment at Sequoia Choice:
Fixed loans:
	$	—	to	$250	29	2.75	%	to	5.63	%	2038-03	-	2048-09	$	5,484	$	—	$	—
	$	251	to	$500	336	3.13	%	to	6.13	%	2037-12	-	2048-09	149,917		1,419		925
	$	501	to	$750	1,363	3.13	%	to	6.38	%	2037-02	-	2048-09	841,692		3,633		—
	$	751	to	$1,000	761	3.25	%	to	6.50	%	2035-04	-	2048-09	659,845		3,549		980
			over	$1,000	311	3.13	%	to	5.88	%	2038-01	-	2048-09	384,072		2,188		—
Total HFI at Sequoia Choice:					2,800									$	2,041,010	$	10,789	$	1,905

Table 6.3 – Product Types and Characteristics of Residential Loans (continued)



December 31, 2018
(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 Freddie Mac SLST:
Fixed loans:
	$	—	to	$250	6,404	2.00	%	to	10.50%	2018-12	-	2058-10	$	830,118	$	130,608	$	30,686
	$	251	to	$500	1,469	2.00	%	to	7.38%	2033-08	-	2058-11	466,222		66,706		19,319
	$	501	to	$750	27	2.00	%	to	5.88%	2050-02	-	2057-12	14,634		1,631		523
					7,900								1,310,974		198,945		50,528

Held-for-Sale:
Hybrid ARM loans
	$	251	to	$500	8	3.88	%	to	5.38%	2048-05	-	2048-12	$	3,795	$	—	$	—
	$	501	to	$750	50	3.63	%	to	7.38%	2048-01	-	2049-01	31,759		—		—
	$	751	to	$1,000	27	3.88	%	to	5.25%	2048-02	-	2049-01	23,478		—		—
			over	$1,000	23	3.50	%	to	5.50%	2047-04	-	2048-12	28,112		—		—
					108								87,144		—		—
Fixed loans
	$	—	to	$250	6	4.38	%	to	5.75%	2048-08	-	2048-11	1,180		—		—
	$	251	to	$500	188	3.13	%	to	6.38%	2029-04	-	2049-01	88,204		—		—
	$	501	to	$750	788	3.75	%	to	7.00%	2033-11	-	2049-01	475,935		559		747
	$	751	to	$1,000	295	3.25	%	to	6.63%	2033-12	-	2049-01	255,429		—		—
			over	$1,000	99	3.75	%	to	6.13%	2032-10	-	2049-01	126,392		—		—
					1,376								947,140		559		747
Total Held-for-Sale					1,484								$	1,034,284	$	559	$	747

(1)

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

The following table displays the loan product type and accompanying loan characteristics of business purpose residential loans recorded on our consolidated balance sheets at December 31, 2019.

Table 7.3 – Product Types and Characteristics of Business Purpose Residential Loans



December 31, 2019
(In Thousands)
Loan Balance					Number of Loans	Interest Rate				Maturity Date			Total Principal		30-89 Days DQ		90+ Days DQ
Single-Family Rental Held-for-Investment at Redwood:
Fixed loans:
	$	251	to	$500	20	4.88	%	to	7.47%	2024-02	-	2030-01	$	7,925	$	—	$	—
	$	501	to	$750	26	4.45	%	to	7.25%	2023-09	-	2030-01	15,620		—		—
	$	751	to	$1,000	16	4.91	%	to	6.58%	2023-11	-	2029-09	13,616		—		—
			over	$1,000	45	3.93	%	to	6.94%	2023-10	-	2030-01	194,050		—		—
Total SFR HFI at Redwood:					107								$	231,211	$	—	$	—

Single-Family Rental Held-for-Investment at CAFL:
Fixed loans:
	$	—	to	$250	2	5.46	%	to	5.80%	2019-11	-	2021-09	$	398	$	—	$	—
	$	251	to	$500	56	4.92	%	to	7.05%	2020-03	-	2029-10	$	25,643	$	1,306	$	—
	$	501	to	$750	148	4.75	%	to	7.31%	2020-03	-	2029-10	91,414		1,259		1,990
	$	751	to	$1,000	98	4.62	%	to	7.23%	2020-03	-	2029-10	85,472		1,639		879
			over	$1,000	479	4.31	%	to	7.57%	2019-12	-	2029-11	1,875,287		18,567		26,170
Total SFR HFI at CAFL:					783								$	2,078,214	$	22,771	$	29,039

Single-Family Rental Held-for-Sale:
Fixed loans:
	$	—	to	$250	85	5.50	%	to	7.63%	2027-03	-	2050-01	$	10,506	$	—	$	130
	$	251	to	$500	9	4.94	%	to	6.00%	2024-11	-	2050-01	3,708		—		—
	$	501	to	$750	21	4.55	%	to	5.96%	2024-01	-	2030-01	13,335		—		—
	$	751	to	$1,000	13	5.00	%	to	5.93%	2024-01	-	2030-01	11,676		—		—
			over	$1,000	73	4.35	%	to	6.28%	2024-01	-	2030-01	282,411		—		1,688
Total Single-Family Rental HFS:					201								$	321,636	$	—	$	1,818

Residential Bridge:
Fixed loans:
	$	—	to	$250	2,207	6.53	%	to	12.00%	2019-07	-	2022-01	$	197,449	$	1,447	$	369
	$	251	to	$500	198	6.99	%	to	13.00%	2019-10	-	2022-01	71,361		2,811		675
	$	501	to	$750	71	6.99	%	to	9.99%	2019-11	-	2021-10	42,862		2,072		508
	$	751	to	$1,000	40	7.28	%	to	10.00%	2018-10	-	2022-01	34,646		1,771		2,443
			over	$1,000	137	5.79	%	to	10.25%	2019-11	-	2022-01	394,914		31,452		4,994
Total Residential Bridge:					2,653								$	741,232	$	39,553	$	8,989



December 31, 2018
(In Thousands)
Loan Balance					Number of Loans	Interest Rate				Maturity Date			Total Principal		30-89 Days DQ		90+ Days DQ
Single-Family Rental Held-for-Sale:
Fixed loans:
	$	251	to	$500	2	6.79	%	to	7.47%	2028-08	-	2028-12	$	787	$	—	$	—
	$	501	to	$750	2	6.12	%	to	7.25%	2023-09	-	2028-11	1,252		—		—
	$	751	to	$1,000	3	5.91	%	to	6.58%	2023-11	-	2028-12	2,488		—		—
			over	$1,000	4	5.62	%	to	6.94%	2023-10	-	2025-12	23,039		—		—
Total Single-Family Rental HFS:					11								$	27,566	$	—	$	—

Residential Bridge:
Fixed loans:
	$	—	to	$250	50	8.00	%	to	12.00%	2018-07	-	2020-05	$	7,941	$	262	$	695
	$	251	to	$500	38	8.00	%	to	10.00%	2018-09	-	2019-12	13,297		636		469
	$	501	to	$750	21	7.50	%	to	10.00%	2019-01	-	2019-12	12,410		1,769		—
	$	751	to	$1,000	19	7.50	%	to	10.00%	2019-04	-	2019-12	16,937		840		—
			over	$1,000	29	8.00	%	to	10.00%	2018-09	-	2019-12	61,775		1,484		10,970
Total Residential Bridge:					157								$	112,360	$	4,991	$	12,134

The following table displays the loan product type and accompanying loan characteristics of multifamily loans recorded on our consolidated balance sheets at December 31, 2019.

Table 8.2 – Product Types and Characteristics of Multifamily Loans



December 31, 2019
(In Thousands)
Loan Balance					Number of Loans	Interest Rate				Maturity Date			Total Principal		30-89 Days DQ		90+ Days DQ
Fixed loans:
	$	1,000	to	$10,000	114	3.29	%	to	4.73%	2023-02	-	2029-10	$	674,666	$	—	$	—
	$	10,001	to	$20,000	102	3.54	%	to	4.94%	2023-09	-	2029-08	1,489,118		—		—
	$	20,001	to	$30,000	32	3.54	%	to	4.69%	2024-01	-	2026-12	750,712		—		—
	$	30,001	to	$40,000	19	3.52	%	to	4.79%	2025-05	-	2029-10	654,729		—		—
			over	$40,000	12	3.55	%	to	4.65%	2024-10	-	2026-09	625,775		—		—
Total:					279								$	4,195,000	$	—	$	—



December 31, 2018
(In Thousands)
Loan Balance					Number of Loans	Interest Rate				Maturity Date			Total Principal		30-89 Days DQ		90+ Days DQ
Fixed loans:
	$	1,000	to	$10,000	70	3.29	%	to	4.73%	2023-02	-	2027-01	$	394,373	$	—	$	—
	$	10,001	to	$20,000	66	3.54	%	to	4.61%	2023-09	-	2027-01	960,992		—		—
	$	20,001	to	$30,000	16	3.65	%	to	4.72%	2024-01	-	2026-12	373,036		—		—
	$	30,001	to	$40,000	7	3.62	%	to	4.71%	2025-11	-	2026-06	244,074		—		—
			over	$40,000	3	3.74	%	to	4.18%	2024-10	-	2026-06	154,223		—		—
Total:					162								$	2,126,698	$	—	$	—