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Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values of Assets and Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Assets    
Real estate securities $ 144,162 $ 860,540
MSRs 242,059 151,582
Derivative assets [1] 14,709 35,701
Pledged collateral 8,172 32,945
Liabilities    
Contingent consideration 0 28,484
Derivative liabilities [1] 1,612 163,424
ABS issued, net, Fair value 6,969,376 10,515,475
Residential Loans    
Assets    
MSRs 258,621 169,204
Carrying Value    
Assets    
Real estate securities 351,335 1,099,874
Cash and cash equivalents 450,684 196,966
Restricted cash 73,594 93,867
Derivative assets 14,709 35,701
Margin receivable 3,809 209,776
FHLBC stock 5,000 43,393
Guarantee asset 579 1,686
Pledged collateral 8,172 32,945
Liabilities    
Margin payable 0 1,700
Guarantee obligation 11,264 14,009
Contingent consideration 0 28,484
Derivative liabilities 1,612 163,424
ABS issued, net, Fair value 6,969,376 10,515,475
ABS issued, net, Amortized cost 203,022 0
FHLBC long-term borrowings 1,000 1,999,999
Other long-term debt, net 886,054 183,520
Convertible notes, net 510,472 631,125
Trust preferred securities and subordinated notes, net 138,663 138,628
Carrying Value | Servicer advance investments    
Assets    
MSRs 258,621 169,204
Carrying Value | MSRs    
Assets    
MSRs 14,878 42,224
Carrying Value | Excess MSRs    
Assets    
REO 35,070 31,814
Carrying Value | REO    
Assets    
REO 8,535 9,462
Carrying Value | Short-term debt    
Liabilities    
Short-term debt 482,761 2,329,145
Carrying Value | Residential Loans | Residential loans, at fair value    
Assets    
Loans, held-for-sale 105,091 536,385
Carrying Value | Residential Loans | Residential loans, held-for-investment    
Assets    
Loans receivable, fair value 4,389,808 7,178,465
Carrying Value | Residential Loans | Business purpose residential loans, held-for-sale    
Assets    
Loans, held-for-sale 285,549 331,565
Carrying Value | Residential Loans | Business purpose residential loans, held-for-investment    
Assets    
Loans receivable, fair value 3,670,552 3,175,178
Carrying Value | Residential Loans | Multifamily loans    
Assets    
Loans receivable, fair value 491,415 4,408,524
Fair Value    
Assets    
Real estate securities 351,335 1,099,874
Cash and cash equivalents 450,684 196,966
Restricted cash 73,594 93,867
Derivative assets 14,709 35,701
Margin receivable 3,809 209,776
FHLBC stock 5,000 43,393
Guarantee asset 579 1,686
Pledged collateral 8,172 32,945
Liabilities    
Margin payable 0 1,700
Guarantee obligation 10,185 13,754
Contingent consideration 0 28,484
Derivative liabilities 1,612 163,424
ABS issued, net, Fair value 6,969,376 10,515,475
ABS issued, net, Amortized cost 207,812 0
FHLBC long-term borrowings 1,000 1,999,999
Other long-term debt, net 885,172 184,666
Convertible notes, net 476,071 661,985
Trust preferred securities and subordinated notes, net 73,238 99,045
Fair Value | Servicer advance investments    
Assets    
MSRs 258,621 169,204
Fair Value | MSRs    
Assets    
MSRs 14,878 42,224
Fair Value | Excess MSRs    
Assets    
REO 35,070 31,814
Fair Value | REO    
Assets    
REO 9,654 10,389
Fair Value | Short-term debt    
Liabilities    
Short-term debt 482,761 2,329,145
Fair Value | Residential Loans | Residential loans, at fair value    
Assets    
Loans, held-for-sale 105,091 536,509
Fair Value | Residential Loans | Residential loans, held-for-investment    
Assets    
Loans receivable, fair value 4,389,808 7,178,465
Fair Value | Residential Loans | Business purpose residential loans, held-for-sale    
Assets    
Loans, held-for-sale 285,549 331,565
Fair Value | Residential Loans | Business purpose residential loans, held-for-investment    
Assets    
Loans receivable, fair value 3,670,552 3,175,178
Fair Value | Residential Loans | Multifamily loans    
Assets    
Loans receivable, fair value 491,415 4,408,524
Shared home appreciation options    
Assets    
Shared home appreciation options   45,085
Shared home appreciation options | Carrying Value    
Assets    
Shared home appreciation options 41,758 45,085
Shared home appreciation options | Fair Value    
Assets    
Shared home appreciation options $ 41,758 $ 45,085
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At September 30, 2020 and December 31, 2019, assets of consolidated VIEs totaled $8,197,095 and $11,931,869, respectively. At September 30, 2020 and December 31, 2019, liabilities of consolidated VIEs totaled $7,238,047 and $10,717,072, respectively. See Note 4 for further discussion.