Home Equity Investments (HEI) (Tables)

12 Months Ended

Dec. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Schedule Of Home Equity Investments

The following table presents our home equity investments at December 31, 2022 and December 31, 2021.

Table 10.1 – Home Equity Investments

(In Thousands)	December 31, 2022		December 31, 2021
HEIs at Redwood	$	270,835	$	33,187
HEIs held at consolidated HEI securitization entity	132,627		159,553
Total Home Equity Investments	$	403,462	$	192,740

Schedule Of Activity of Home Equity Investments

The following table provides the activity of HEIs during the years ended December 31, 2022 and 2021.

Table 10.2 – Activity of HEI

	Twelve Months Ended   December 31, 2022				Twelve Months Ended   December 31, 2021
(In Thousands)	HEI at Redwood		Securitized HEI		HEI at Redwood		Securitized HEI
Fair value of HEI purchased	$	248,218	$	—	$	32,650	$	—
Fair value of HEI transferred (1)	—		—		(47,209)		47,209
Net market valuation gains (losses) recorded (2)	(202)		5,875		13,207		567

(1)Includes HEI transferred into our HEI securitization.

(2)We account for HEI at Redwood under the fair value option and record net market valuation changes through Investment fair value changes, net on our Consolidated statements of income (loss). We account for Securitized HEI under the CFE election and net market valuation gains (losses) for these investments are recorded through Investment fair value changes, net on our Consolidated statements of income (loss).

Schedule Of HEI Characteristics

The following tables summarizes the characteristics of HEIs at December 31, 2022 and 2021.

Table 10.3 – HEI Characteristics

	December 31, 2022				December 31, 2021
(Dollars in Thousands)	HEI at Redwood		Securitized HEI		HEI at Redwood		Securitized HEI
Number of HEI contracts	2,599		1,007		333		1,318
Average initial amount of contract	$	101	$	94	$	95	$	91

Geographic Concentration of HEI

The following tables present the geographic concentration of HEI recorded on our consolidated balance sheets at December 31, 2022 and 2021.

Table 10.4 – Geographic Concentration of HEI

	December 31, 2022
Geographic Concentration (by Principal)	HEI at Redwood		Securitized HEI
California	44	%	59	%
Florida	14	%	4	%
Arizona	7	%	—	%
Washington	6	%	6	%
Colorado	5	%	4	%
New York	4	%	11	%
Other states (none greater than 5%)	20	%	16	%
Total	100	%	100	%

	December 31, 2021
Geographic Concentration (by Principal)	HEI at Redwood		Securitized HEI
California	42	%	58	%
Florida	9	%	4	%
Arizona	10	%	—	%
Washington	12	%	6	%
Colorado	3	%	5	%
New York	5	%	10	%
Other states (none greater than 5%)	19	%	17	%
Total	100	%	100	%