Home Equity Investments (HEI) (Tables)

3 Months Ended

Mar. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Schedule Of Home Equity Investments

The following table presents our home equity investments at March 31, 2023 and December 31, 2022.

Table 10.1 – Home Equity Investments

(In Thousands)	March 31, 2023		December 31, 2022
HEI at Redwood	$	287,466	$	270,835
HEI held at consolidated HEI securitization entity	129,317		132,627
Total Home Equity Investments	$	416,783	$	403,462

Schedule Of Activity of Home Equity Investments

The following table details our HEI activity during the three months ended March 31, 2023 and 2022.

Table 10.2 – Activity of HEI

	Three Months Ended   March 31, 2023				Three Months Ended   March 31, 2022
(In Thousands)	HEI at Redwood		Securitized HEI		HEI at Redwood		Securitized HEI
Fair value of HEI purchased	$	16,559	$	—	$	40,141	$	—
Net market valuation gains recorded (1)	3,840		1,068		1,192		5,731

(1)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. 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.

Schedule Of HEI Characteristics

The following tables summarizes the characteristics of our HEI at March 31, 2023 and December 31, 2022.

Table 10.3 – HEI Characteristics

	March 31, 2023				December 31, 2022
(Dollars in Thousands)	HEI at Redwood		Securitized HEI		HEI at Redwood		Securitized HEI
Number of HEI contracts	2,695		984		2,599		1,007
Average initial amount of contract	$	101	$	94	$	101	$	94