Multifamily Loans (Tables)

9 Months Ended

Sep. 30, 2020

Receivables [Abstract]

Schedule of Multifamily Loans

The following table summarizes the characteristics of the multifamily loans consolidated at Redwood at September 30, 2020 and December 31, 2019.

Table 8.1 – Characteristics of Multifamily Loans

(Dollars in Thousands)	September 30, 2020			December 31, 2019
Number of loans	28			279
Unpaid principal balance	$	464,680		$	4,195,000
Fair value of loans	$	491,415		$	4,408,524
Weighted average coupon	4.25		%	4.13		%
Weighted average remaining loan term (years)	5			6
Number of loans with 90+ day delinquencies	—			—
Number of loans in foreclosure	—			—

The outstanding multifamily loans held-for-investment at the Freddie Mac K-Series entities at September 30, 2020 were first-lien, fixed-rate loans that were originated in 2015 and had original loan terms of ten years. The following table provides the activity of multifamily loans held-for-investment during the three and nine months ended September 30, 2020 and 2019.

Table 8.2 – Quarterly Activity of Multifamily Loans Held-for-Investment

	Three Months Ended September 30,				Nine Months Ended September 30,
(In Thousands)	2020		2019		2020		2019
Net market valuation gains (losses) recorded (1)	$	2,340	$	47,353	$	(61,500)	$	178,374

(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 (loss). For loans held at our consolidated Freddie Mac K-Series entities, market value changes are based on the estimated fair value of the associated ABS issued, 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 Note 5