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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
Redwood operates in three segments: Sequoia Mortgage Banking, CoreVest Mortgage Banking and Redwood Investments. For a full description of our segments and factors used to determine each reportable segments, see Item 1—Business in this Annual Report on Form 10-K.
This segmentation aligns with the results of operations presented to our chief operating decision maker ("CODM") in reviewing the Company for performance assessment and resource allocation. We identify our CODM to be a group consisting of the Company's Chief Executive Officer, President and Chief Financial Officer.
Our CODM evaluates performance and allocates resources on each respective segment primarily based on segment net income (loss), also referred to as segment contribution, which is also used to assess the annual budget and forecasting process and to consider budget-to-actual variances when allocating capital and personnel to the segments throughout the year.
The accounting policies applied to the segments are the same as those described in the summary of significant accounting policies in Note 3 of the Notes to Consolidated Financial Statements, with the exception of allocations of certain corporate expenses not directly assigned or allocated to one of our three segments. These unallocated corporate expenses are included in the Corporate/Other column as reconciling items to our consolidated financial statements and primarily include interest expense for our senior notes, convertible and exchangeable senior notes, and trust preferred securities, indirect general and administrative expenses and other expense. In the normal course of business, loans are originated and acquired at our mortgage banking segments and may subsequently be transferred to our Redwood Investments segment either as whole loans or through the retention of securities from securitizations we sponsor and consolidate under GAAP. All of our loans are accounted for under the fair value option and amounts transferred between segments are accounted for at fair value at the time of transfer.
The following tables present financial information by segment for the years ended December 31, 2024, 2023, and 2022.
Table 4.1 – Business Segment Financial Information
Year Ended December 31, 2024
(In Thousands)Sequoia Mortgage BankingCoreVest Mortgage BankingRedwood Investments Corporate/
Other 		 Total
Interest income$97,860 $20,280 $823,939 $3,085 $945,164 
Interest expense(54,065)(14,970)(702,505)(71,016)(842,556)
Net interest income (expense)43,795 5,310 121,434 (67,931)102,608 
Non-interest income (loss)
Mortgage banking activities, net, excluding risk management derivatives82,202 36,701 — — 118,903 
Risk management derivatives (losses) gains, net (1)
(24,623)5,118 — — (19,505)
Total Mortgage banking activities, net57,579 41,819 — — 99,398 
Investment fair value changes, net, excluding risk management derivatives— — (2,891)(1,679)(4,570)
Risk management derivatives (losses) gains, net (1)
— — (10,189)— (10,189)
Total Investment fair value changes, net— — (13,080)(1,679)(14,759)
HEI income, net— — 41,831 — 41,831 
Other income, net— 10,930 17,674 (1,076)27,528 
Realized gains, net— — 565 (259)306 
Total non-interest income (loss), net57,579 52,749 46,990 (3,014)154,304 
General and administrative expenses (20,008)(40,008)(3,982)(72,395)(136,393)
Portfolio management costs— — (20,750)(165)(20,915)
Loan acquisition costs(3,860)(8,563)(244)(8)(12,675)
Other expenses— (9,413)(4,675)— (14,088)
(Provision for) benefit from income taxes(16,009)2,219 (5,586)539 (18,837)
Net Income (Loss) (2)
$61,497 $2,294 $133,187 $(142,974)$54,004 
Total Assets$1,231,723 $334,529 $16,358,430 $333,662 $18,258,344 
(1)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations and Redwood Investments. For mortgage banking, also includes other derivative financial instruments such as loan purchase commitments and interest rate locks.
(2)Net Income (Loss) by segment is also referred to as Segment Contribution.
Year Ended December 31, 2023
(In Thousands)Sequoia Mortgage BankingCoreVest Mortgage BankingRedwood InvestmentsCorporate/
Other		Total
Interest income$25,404 $15,896 $675,478 $7,684 $724,462 
Interest expense(24,114)(13,078)(536,527)(57,800)(631,519)
Net interest income (expense)1,290 2,818 138,951 (50,116)92,943 
Non-interest income (loss)
Mortgage banking activities, net, excluding risk management derivatives45,690 40,518 — — 86,208 
Risk management derivatives (losses) gains, net (1)
(17,908)(914)— — (18,822)
Total Mortgage banking activities, net27,782 39,604 — — 67,386 
Investment fair value changes, net, excluding risk management derivatives1,076 — (41,003)(2,994)(42,921)
Risk management derivatives (losses) gains, net (1)
— — (1,479)— (1,479)
Total Investment fair value changes, net1,076 — (42,482)(2,994)(44,400)
HEI income, net— — 35,117 — 35,117 
Other income, net— 5,613 10,361 (3,088)12,886 
Realized gains, net— — 858 841 1,699 
Total non-interest income (loss), net28,858 45,217 3,854 (5,241)72,688 
General and administrative expenses (17,171)(44,547)(5,638)(60,939)(128,295)
Portfolio management costs— — (14,516)(55)(14,571)
Loan acquisition costs(1,266)(5,900)— — (7,166)
Other expenses— (12,442)(5,796)2,000 (16,238)
(Provision for) Benefit from income taxes(1,659)2,279 (2,946)691 (1,635)
Net Income (Loss) (2)
$10,052 $(12,575)$113,909 $(113,660)$(2,274)
Total Assets$971,535 $293,225 $12,858,272 $381,295 $14,504,327 
(1)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations and Redwood Investments. For mortgage banking, also includes other derivative financial instruments such as loan purchase commitments and interest rate locks.
(2)Net Income (Loss) by segment is also referred to as Segment Contribution.
Year Ended December 31, 2022
(In Thousands)Sequoia Mortgage BankingCoreVest Mortgage BankingRedwood InvestmentsCorporate/
Other		Total
Interest income$45,202 $28,674 $632,806 $1,172 $707,854 
Interest expense(32,735)(18,041)(450,360)(51,264)(552,400)
Net interest income (expense)12,467 10,633 182,446 (50,092)155,454 
Non-interest (loss) income
Mortgage banking activities, net, excluding risk management derivatives(121,995)(49,108)— — (171,103)
Risk management derivatives (losses) gains, net (1)
100,713 56,731 — — 157,444 
Total Mortgage banking activities, net(21,282)7,623 — — (13,659)
Investment fair value changes, net, excluding risk management derivatives— — (221,316)16,892 (204,424)
Risk management derivatives (losses) gains, net (1)
— — 26,152 — 26,152 
Total Investment fair value changes, net— — (195,164)16,892 (178,272)
HEI income, net— — 2,714 — 2,714 
Other income, net— 3,509 18,596 (901)21,204 
Realized gains, net— — 3,174 2,160 5,334 
Total non-interest (loss) income, net(21,282)11,132 (170,680)18,151 (162,679)
General and administrative expenses(22,566)(56,557)(6,036)(55,749)(140,908)
Portfolio management costs— — (7,951)— (7,951)
Loan acquisition costs(3,085)(8,681)— — (11,766)
Other expense74 (13,969)(1,695)— (15,590)
Benefit from (provision for) income taxes12,814 13,157 (6,051)— 19,920 
Net (Loss) (2)
$(21,578)$(44,285)$(9,967)$(87,690)$(163,520)
Total Assets$660,916 $487,159 $11,489,844 $392,980 $13,030,899 
(1)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations and Redwood Investments. For mortgage banking, also includes other derivative financial instruments such as loan purchase commitments and interest rate locks.
(2)Net (Loss) by segment is also referred to as Segment Contribution.