Multifamily Loans (Tables)

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Schedule of Multifamily Loans

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

Table 8.1 – Characteristics of Multifamily Loans

(Dollars in Thousands)	December 31, 2020			December 31, 2019
Number of loans	28			279
Unpaid principal balance	$	462,808		$	4,195,000
Fair value of loans	$	492,221		$	4,408,524
Weighted average coupon	4.25		%	4.13		%
Weighted average remaining loan term (years)	5			6
Delinquency information
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 December 31, 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 year months ended December 31, 2020 and 2019.

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

	Year Ended December 31,
(In Thousands)	2020		2019
Net market valuation gains (losses) recorded (1)	$	(58,821)	$	130,083

(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, including securities we own, 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.

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, 2020 and December 31, 2019.

Table 6.7 – Geographic Concentration of Residential Loans

	December 31, 2020
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	43	%	17	%	34	%	14	%	—	%
Texas	10	%	5	%	10	%	3	%	—	%
Washington	7	%	1	%	5	%	2	%	—	%
Colorado	5	%	3	%	3	%	1	%	—	%
Florida	3	%	14	%	6	%	10	%	—	%
Illinois	3	%	3	%	2	%	5	%	—	%
Maryland	2	%	2	%	1	%	5	%	—	%
New Jersey	1	%	5	%	2	%	7	%	—	%
New York	1	%	10	%	5	%	10	%	—	%
Ohio	—	%	5	%	—	%	2	%	—	%
Other states (none greater than 5%)	25	%	35	%	32	%	41	%	—	%
Total	100	%	100	%	100	%	100	%	—	%

	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	%

The following table presents the geographic concentration of business purpose loans recorded on our consolidated balance sheets at December 31, 2020.

Table 7.5 – Geographic Concentration of Business Purpose Loans

	December 31, 2020
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
Texas	24	%	—	%	15	%	4	%
New Jersey	17	%	—	%	11	%	9	%
Georgia	12	%	—	%	5	%	8	%
Florida	10	%	—	%	8	%	11	%
Connecticut	8	%	—	%	4	%	1	%
New York	5	%	—	%	1	%	8	%
Arizona	5	%	—	%	2	%	1	%
California	5	%	—	%	5	%	13	%
Illinois	5	%	—	%	4	%	7	%
Alabama	2	%	—	%	3	%	6	%
Indiana	2	%	—	%	3	%	5	%
Tennessee	—	%	—	%	3	%	6	%
Other states (none greater than 5%)	5	%	—	%	36	%	21	%
Total	100	%	—	%	100	%	100	%

	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
Texas	19	%	12	%	15	%	3	%
New Jersey	12	%	5	%	11	%	8	%
Georgia	8	%	—	%	5	%	7	%
Arkansas	6	%	—	%	2	%	—	%
Maryland	6	%	—	%	2	%	—	%
Florida	5	%	—	%	8	%	9	%
New York	5	%	1	%	1	%	6	%
Alabama	5	%	—	%	4	%	4	%
Illinois	1	%	—	%	5	%	3	%
California	2	%	1	%	7	%	21	%
Utah	—	%	—	%	—	%	5	%
Other states (none greater than 5%)	31	%	81	%	40	%	34	%
Total	100	%	100	%	100	%	100	%

The following table presents the geographic concentration of multifamily loans recorded on our consolidated balance sheets at December 31, 2020.

Table 8.3 – Geographic Concentration of Multifamily Loans

Geographic Concentration (by Principal)	December 31, 2020		December 31, 2019
California	13	%	11	%
Florida	13	%	10	%
North Carolina	9	%	—	%
Oregon	7	%	—	%
Hawaii	5	%	—	%
Tennessee	5	%	—	%
Texas	—	%	13	%
Arizona	—	%	6	%
Georgia	—	%	6	%
Washington	—	%	5	%
Colorado	—	%	5	%
Other states (none greater than 5%)	48	%	44	%
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, 2020 and December 31, 2019.

Table 6.8 – Product Types and Characteristics of Residential Loans

December 31, 2020
(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 Legacy Sequoia:
ARM loans:
	$	—	to	$250	1,524	0.25	%	to	5.63%	2020-10	-	2036-05	$	146,100	$	4,208	$	3,966
	$	251	to	$500	251	0.50	%	to	4.13%	2024-05	-	2035-11	86,676		1,908		4,392
	$	501	to	$750	79	0.25	%	to	4.13%	2027-05	-	2035-01	48,437		714		1,192
	$	751	to	$1,000	27	0.75	%	to	3.75%	2028-03	-	2036-03	21,875		—		3,175
			over	$1,000	18	1.00	%	to	2.38%	2028-05	-	2035-04	26,422		—		4,560
					1,899								329,510		6,830		17,285
Hybrid ARM loans:
	$	—	to	$250	2	2.63	%	to	2.63%	2033-09	-	2033-10	439		—		—
	$	251	to	$500	5	2.63	%	to	4.00%	2033-07	-	2034-03	1,748		410		—
	$	501	to	$750	1	2.75	%	to	2.75%	2033-08	-	2033-08	556		—		—
			over	$1,000	1	2.63	%	to	2.63%	2033-09	-	2033-09	1,221		—		—
					9								3,964		410		—
Total HFI at Legacy Sequoia:					1,908								$	333,474	$	7,240	$	17,285
Held-for-Investment at Sequoia Choice:
Hybrid ARM loans
	$	—	to	$250	3	5.50	%	to	6.75%	2048-03	-	2048-10	$	607	$	—	$	—
	$	251	to	$500	5	3.50	%	to	3.63%	2046-11	-	2049-06	2,196		440		—
	$	501	to	$750	19	3.25	%	to	4.75%	2044-04	-	2049-09	12,214		682		671
	$	751	to	$1,000	15	3.13	%	to	5.00%	2043-12	-	2049-08	12,911		960		1,744
			over	$1,000	12	3.50	%	to	5.00%	2044-11	-	2050-02	15,716		—		—
					54								43,644		2,082		2,415
Fixed loans:
	$	—	to	$250	48	2.75	%	to	5.50%	2029-04	-	2049-09	$	9,508	$	—	$	191
	$	251	to	$500	285	3.13	%	to	6.13%	2033-06	-	2050-03	122,327		4,728		2,225
	$	501	to	$750	1,004	3.00	%	to	6.75%	2031-04	-	2050-04	617,488		15,214		24,842
	$	751	to	$1,000	556	3.25	%	to	6.50%	2036-12	-	2050-04	478,938		10,482		21,155
			over	$1,000	230	3.15	%	to	5.88%	2036-07	-	2050-04	278,549		4,868		23,914
					2,123								1,506,810		35,292		72,327
Total HFI at Sequoia Choice:					2,177								$	1,550,454	$	37,374	$	74,742

Table 6.8 – Product Types and Characteristics of Residential Loans (continued)

December 31, 2020
(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	11,007	2.00	%	to	11.00%	2020-12	-	2059-10	$	1,407,107	$	283,745	$	206,724
	$	251	to	$500	2,545	2.00	%	to	7.75%	2035-05	-	2059-01	811,191		143,195		172,995
	$	501	to	$750	52	2.00	%	to	6.75%	2043-08	-	2058-07	28,461		6,863		9,526
			over	$1,000	1	4.00	%	to	4.00%	2056-03	-	2056-03	1,012		1,012		—
Total HFI at Freddie Mac SLST:					13,605								$	2,247,771	$	434,815	$	389,245
Held-for-Sale:
Hybrid ARM loans
	$	—	to	$250	1	2.00	%	to	2.00%	2032-11	-	2032-11	$	49	$	—	$	—
	$	751	to	$1,000	1	4.38	%	to	4.38%	2047-10	-	2047-10	970		970		—
					2								1,019		970		—
Fixed loans
	$	—	to	$250	1	4.69	%	to	4.69%	2044-03	-	2044-03	219		219		—
	$	501	to	$750	75	2.50	%	to	5.50%	2045-12	-	2051-01	48,933		1,127		—
	$	751	to	$1,000	80	2.38	%	to	4.63%	2050-04	-	2051-01	71,137		—		—
			over	$1,000	40	2.38	%	to	5.00%	2040-11	-	2051-01	51,440		1,046		1,882
					196								171,729		2,392		1,882
Total Held-for-Sale					198								$	172,748	$	3,362	$	1,882

Table 6.8 – 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 Redwood:
Hybrid ARM loans
	$	—	to	$250	12	3.50	%	to	4.5%		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	120,260		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									419,398		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									$	424,829	$	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	3.5	%	to	5.88	%	2038-01	-	2049-09	384,958		1,108		1,092
Total HFI at Sequoia Choice:					3,156									$	2,240,679	$	24,266	$	6,755

Table 6.8 – 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	894,126		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								2,428,035		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

(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 loans recorded on our consolidated balance sheets at December 31, 2020.

Table 7.6 – Product Types and Characteristics of Business Purpose Loans

December 31, 2020
(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 CAFL:
Fixed loans:
	$	—	to	$250	5	5.77	%	to	7.05%	2022-07	-	2030-08	$	1,016	$	—	$	—
	$	251	to	$500	67	4.64	%	to	6.96%	2021-07	-	2031-01	29,977		—		—
	$	501	to	$750	212	4.12	%	to	7.06%	2020-11	-	2030-12	130,665		—		1,752
	$	751	to	$1,000	131	4.33	%	to	7.23%	2021-01	-	2031-01	113,874		764		750
			over	$1,000	679	3.93	%	to	7.57%	2020-11	-	2031-01	2,741,605		3,867		58,938
Total SFR HFI at CAFL:					1,094								$	3,017,137	$	4,631	$	61,440
Single-Family Rental Held-for-Sale:
Fixed loans:
	$	—	to	$250	8	6.25	%	to	7.75%	2027-03	-	2050-03	$	1,060	$	—	$	635
	$	251	to	$500	1	5.97	%	to	5.97%	2021-02	-	2021-02	483		—		—
	$	501	to	$750	6	5.84	%	to	6.75%	2026-01	-	2031-01	3,632		—		—
	$	751	to	$1,000	10	5.15	%	to	6.39%	2020-05	-	2031-01	8,936		—		1,815
			over	$1,000	40	3.82	%	to	5.95%	2020-07	-	2031-01	220,364		—		4,677
Total Single-Family Rental HFS:					65								$	234,475	$	—	$	7,127
Bridge:
Fixed loans:
	$	—	to	$250	1,440	5.75	%	to	12.00%	2019-10	-	2022-12	$	128,596	$	6,530	$	1,668
	$	251	to	$500	110	6.65	%	to	13.00%	2020-05	-	2022-12	37,607		945		1,423
	$	501	to	$750	39	6.99	%	to	10.00%	2020-07	-	2021-10	23,783		—		540
	$	751	to	$1,000	21	6.50	%	to	9.50%	2020-10	-	2022-03	18,225		—		943
			over	$1,000	115	6.04	%	to	10.25%	2020-03	-	2022-12	441,321		—		34,841
Total Bridge:					1,725								$	649,532	$	7,475	$	39,415

Table 7.6 – Product Types and Characteristics of Business Purpose Loans (continued)

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	282,412		—		1,688
Total Single-Family Rental HFS:					201								$	321,637	$	—	$	1,818
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		4,992
Total Bridge:					2,653								$	741,232	$	39,553	$	8,987

The following table displays the loan product type and accompanying loan characteristics of multifamily loans recorded on our consolidated balance sheets at December 31, 2020.

Table 8.4 – Product Types and Characteristics of Multifamily Loans

December 31, 2020
(In Thousands)
Loan Balance					Number of Loans	Interest Rate				Maturity Date			Total Principal		30-89 Days DQ		90+ Days DQ
Fixed loans:
	$	10,001	to	$20,000	24	4.25	%	to	4.25%	2025-09	-	2025-09	$	370,934	$	—	$	—
	$	20,001	to	$30,000	4	4.25	%	to	4.25%	2025-09	-	2025-09	91,874		—		—
Total:					28								$	462,808	$	—	$	—

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	$	—	$	—