We acquire residential consumer loans from third-party originators and may sell or securitize these loans or hold them for investment. The following table summarizes the classifications and carrying values of the residential consumer loans owned at Redwood, consolidated Sequoia and Freddie Mac SLST entities at December 31, 2024 and 2023.

Table 7.1 – Classifications and Carrying Values of Residential Consumer Loans


December 31, 2024					Freddie Mac
(In Thousands)	Redwood		Sequoia		SLST		Total
Held-for-sale at fair value	$	1,013,547	$	—	$	—	$	1,013,547
Held-for-investment at fair value	—		8,819,554		1,244,722		10,064,276
Total Residential Consumer Loans	$	1,013,547	$	8,819,554	$	1,244,722	$	11,077,823


December 31, 2023					Freddie Mac
(In Thousands)	Redwood		Sequoia		SLST		Total
Held-for-sale at fair value	$	911,192	$	—	$	—	$	911,192
Held-for-investment at fair value	—		4,780,203		1,359,242		6,139,445
Total Residential Consumer Loans	$	911,192	$	4,780,203	$	1,359,242	$	7,050,637

At December 31, 2024, we owned mortgage servicing rights associated with $1.0 billion (principal balance) of residential consumer loans owned at Redwood that were purchased from third-party originators. The value of these MSRs is included in the carrying value of the associated loans on our consolidated balance sheets. We contract with licensed sub-servicers that perform servicing functions for these loans.

Table 7.2 – Characteristics of Residential Consumer Loans Held-for-Sale


(Dollars in Thousands)	December 31, 2024			December 31, 2023

UPB	$	1,000,663		$	916,877
Fair value of loans	$	1,013,547		$	911,192
Market value of loans pledged as collateral under short-term borrowing agreements	$	1,005,926		$	907,742
Weighted average coupon	6.56		%	6.25		%

Table 7.3 – Activity of Residential Consumer Loans Held-for-Sale


	Year Ended December 31,
(In Thousands)	2024		2023
Principal balance of loans acquired	$	7,043,177	$	2,101,161
Principal balance of loans sold	1,650,357		270,482
Principal balance of loans transferred from HFS to HFI	5,208,677		1,703,442
Net market valuation gains recorded (1)	29,448		20,560

Table 7.4 – Characteristics of Residential Consumer Loans Held-for-Investment


December 31, 2024	Sequoia			Freddie Mac
(Dollars in Thousands)				SLST

UPB	$	9,350,286		$	1,514,432
Average loan balance (UPB)	$	842		$	155
Fair value of loans (1)	$	8,819,554		$	1,244,722
Weighted average coupon	5.35		%	4.49		%

Delinquency information
Unpaid principal balance of loans with 90+ day delinquencies (2)	$	19,480		$	106,910
Average 90+ days delinquent balance (UPB)	$	573		$	172
Unpaid principal balance of loans in foreclosure	$	10,493		$	41,913
Average foreclosure balance (UPB)	$	552		$	185


December 31, 2023				Freddie Mac
(Dollars in Thousands)	Sequoia			SLST

UPB	$	5,398,913		$	1,614,974
Average loan balance (UPB)	$	757		$	157
Fair value of loans (1)	$	4,780,203		$	1,359,242
Weighted average coupon	4.15		%	4.50		%

Delinquency information

Unpaid principal balance of loans with 90+ day delinquencies (2)	$	13,023		$	132,307

Average 90+ days delinquent balance (UPB)	$	482		$	166

Unpaid principal balance of loans in foreclosure	$	5,234		$	47,654
Average foreclosure balance (UPB)	$	436		$	163

(1)The fair value of the loans held by consolidated entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with the accounting guidance for collateralized financing entities.

(3)For loans held at our consolidated SEMT and Freddie Mac SLST entities, market value changes are based on the fair value of the associated ABS issued, including securities we own, pursuant to the measurement alternative provided for collateralized financing entities, and are recorded in Investment fair value changes, net on our consolidated statements of income (loss).

Table 7.5 – Activity of Residential Consumer Loans Held-for-Investment at Consolidated Entities

Year Ended December 31, 2024

Year Ended December 31, 2023

Freddie Mac

(In Thousands)

Sequoia

SLST

Sequoia

SLST

Principal balance of loans transferred from HFS to HFI (1)

5,208,677

N/A

1,703,442

N/A

Net market valuation gains (losses) recorded

(7,658)

(11,158)

106,380

11,132

Table 7.6 – Geographic Concentration of Residential Consumer Loans


	December 31, 2024
Geographic Concentration (by Principal Balance)	Held-for-Sale		Held-for- Investment at Sequoia		Held-for-Investment at Freddie Mac SLST
California	26	%	31	%	14	%
Washington	12	%	8	%	2	%
Texas	8	%	10	%	3	%
Colorado	6	%	6	%	1	%
Florida	5	%	7	%	10	%
Illinois	3	%	2	%	6	%
New Jersey	2	%	2	%	7	%
New York	1	%	2	%	11	%
Maryland	—	%	1	%	5	%
Other states (none greater than 5%)	37	%	31	%	41	%
Total	100	%	100	%	100	%


	December 31, 2023
Geographic Concentration (by Principal Balance)	Held-for-Sale		Held-for- Investment at Sequoia		Held-for-Investment at Freddie Mac SLST
California	25	%	33	%	14	%
Washington	16	%	7	%	2	%
Texas	8	%	11	%	3	%
Florida	7	%	5	%	10	%
Colorado	4	%	7	%	1	%
New Jersey	2	%	1	%	7	%
Illinois	2	%	3	%	5	%
New York	1	%	2	%	11	%
Maryland	1	%	2	%	5	%
Other states (none greater than 5%)	34	%	29	%	42	%
Total	100	%	100	%	100	%

We originate and invest in residential investor loans, including term loans and bridge loans (see Note 3 for a full description of these loans). The following table summarizes the classifications and carrying values of the residential investor loans owned at Redwood and at consolidated CAFL entities at December 31, 2024 and 2023.

Table 8.1 – Classifications and Carrying Values of Residential Investor Loans


December 31, 2024	Residential Investor Term				Residential Investor Bridge
(In Thousands)	Redwood		CAFL		Redwood		CAFL		Total
Held-for-sale at fair value	$	158,637	$	—	$	78,587	$	—	$	237,224
Held-for-investment at fair value	—		2,485,069		1,041,694		823,103		4,349,866
Total Residential Investor Loans	$	158,637	$	2,485,069	$	1,120,281	$	823,103	$	4,587,090


December 31, 2023	Residential Investor Term				Residential Investor Bridge
(In Thousands)	Redwood		CAFL		Redwood		CAFL		Total
Held-for-sale at fair value	$	144,359	$	—	$	35,891	$	—	$	180,250
Held-for-investment at fair value	—		2,971,725		1,305,727		762,596		5,040,048
Total Residential Investor Loans	$	144,359	$	2,971,725	$	1,341,618	$	762,596	$	5,220,298

Table 8.2 – Activity of Residential Investor Loans at Redwood


	Year Ended December 31, 2024				Year Ended December 31, 2023
(In Thousands)	Term at Redwood		Bridge at Redwood		Term at Redwood		Bridge at Redwood
Principal balance of loans originated	$	720,537	$	967,811	$	525,130	$	1,153,568
Principal balance of loans acquired	19,246		15,677		—		19,500
Principal balance of loans sold to third parties (1)	713,314		516,411		473,677		128,664
Transfers of loans between portfolios (2)	—		(290,159)		(278,751)		(641,194)

Consolidation of securitized CAFL bridge loans (3)	298,553		—		—		—
Mortgage banking activities income (loss) recorded (4)	11,692		3,767		16,500		5,704
Investment fair value changes recorded	(8,777)		(40,430)		(14,430)		(39,361)

(1)For the year ended December 31, 2024 the principal balance of loans sold to third parties is net of $49 million related to construction draws on residential investor bridge loans sold to our joint ventures. See Note 11 for additional information on these joint ventures.

(2)Transfers of residential investor term loans between portfolios at Redwood represents the transfer of loans from held-for-sale to held-for-investment associated with consolidated CAFL term securitizations. Transfers of residential investor bridge loans at Redwood, represents the transfer of residential investor bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their inclusion in one of our bridge loan securitizations, which generally have replenishment features for a set period of time from the closing date.

(3)In the fourth quarter of 2024, we completed our first CAFL securitization sponsored by our joint venture. This securitization involved loans contributed from our joint venture and by CoreVest. This securitization vehicle has been determined to be a VIE that we consolidate under GAAP as we are the primary beneficiary. See Note 15 for additional information on our principles of consolidation.

We invest in securities issued by CAFL securitizations sponsored by CoreVest and consolidate the underlying CoreVest term loans and bridge loans owned by these entities. For loans held at our consolidated CAFL Term entities and one CAFL Bridge entity, market value changes are based on the fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines, and are recorded through Investment fair value changes, net on our consolidated statements of income (loss). The net impact to our income statement associated with our economic investments in the CAFL Term entities is presented in Table 15.2. We did not elect to account for two of our CAFL Bridge securitizations under the collateralized financing entity guidelines but have elected to account for the loans in these securitization at fair value, and changes in fair value for these loans are recorded through Investment fair value changes, net on our consolidated statements of income (loss). The following table provides the activity of residential investor loans held-for-investment at CAFL during the years ended December 31, 2024 and 2023.

Table 8.3 – Activity of Residential Investor Loans Held-for-Investment at CAFL


	Year Ended December 31, 2024				Year Ended December 31, 2023
(In Thousands)	Term at CAFL		Bridge at CAFL		Term at CAFL		Bridge at CAFL
Net market valuation gains (losses) recorded(1)	$	61,559	$	6,198	$	89,013	$	(1,775)
Fair value of loans transferred to HFI	—		290,159		278,751		641,779

(1)Net market valuation gains (losses) on residential investor loans held-for-investment at CAFL are recorded through Investment fair value changes, net on our consolidated statements of income (loss). For loans held at our consolidated CAFL Term and Bridge entities, market value changes are based on the fair value of the associated ABS issued, including securities we own, pursuant to CFE guidelines. We did not elect to account for two of our CAFL Bridge securitizations under the CFE guidelines but have elected to account for the loans in these securitizations at fair value, and changes in fair value for these loans are recorded through Investment fair value changes, net on our consolidated statements of income (loss).

Table 8.4 – Characteristics of Residential Investor Loans


December 31, 2024	Term at Redwood			Term at CAFL(1)			Bridge at Redwood			Bridge at CAFL
(Dollars in Thousands)

Unpaid principal balance	$	177,618		$	2,639,485		$	1,166,213		$	810,285
Average UPB of loans	$	1,759		$	3,084		$	5,350		$	1,605
Fair value of loans	$	158,637		$	2,485,069		$	1,120,281		$	823,103
Weighted average coupon	6.84		%	5.35		%	9.11		%	9.76		%
Weighted average remaining loan term (years)	9			4			1			1
Market value of loans pledged as collateral under debt facilities	$	120,417		N/A			$	1,070,327		N/A

Delinquency information

Unpaid principal balance of loans with 90+ day delinquencies (2)	$	33,065		$	194,143		$	129,229		$	20,964
Average UPB of 90+ days delinquent loans (2)	$	8,266		$	3,734		$	8,077		$	1,233
Fair value of loans with 90+ day delinquencies (2)	$	12,366		N/A			$	102,321		N/A

Unpaid principal balance of loans in foreclosure (3)	$	27,529		$	24,648		$	86,260		$	3,663
Average UPB of loans in foreclosure (3)	$	27,529		$	2,465		$	6,635		$	916
Fair value of loans in foreclosure (3)	$	8,500		N/A			$	67,858		$	3,715


December 31, 2023	Term at Redwood			Term at CAFL(1)			Bridge at Redwood			Bridge at CAFL
(Dollars in Thousands)

Unpaid principal balance	$	152,213		$	3,194,131		$	1,360,957		$	756,574
Average UPB of loans	$	4,006		$	3,028		$	8,453		$	2,162
Fair value of loans	$	144,359		$	2,971,725		$	1,341,618		$	762,596
Weighted average coupon	6.92		%	5.34		%	10.41		%	10.82		%
Weighted average remaining loan term (years)	7			5			1			1
Market value of loans pledged as collateral under debt facilities	$	124,934		N/A			$	1,298,198		N/A

Delinquency information

Unpaid principal balance of loans with 90+ day delinquencies (2)	$	28,263		$	143,623		$	96,934		$	10,646
Average UPB of 90+ days delinquent loans (2)	$	14,132		$	3,192		$	5,702		$	1,774
Fair value of loans with 90+ day delinquencies (2)	$	16,822		N/A			$	86,137		N/A

Unpaid principal balance of loans in foreclosure (3)	$	28,263		$	15,708		$	79,841		$	3,931
Average UPB of loans in foreclosure (3)	$	14,132		$	2,244		$	5,323		$	1,310
Fair value of loans in foreclosure (3)	$	16,822		N/A			$	69,046		N/A

(1)The fair value of the loans held by consolidated CAFL Term and Bridge entities were based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with the accounting guidance for CFEs.

Table 8.5 – Residential Investor Loans Collateral/Strategy Type


December 31, 2024	Term at Redwood		Term at CAFL(1)		Bridge at Redwood		Bridge at CAFL(1)
(Dollars in Thousands)
Term
Single family rental	$	100,411	$	2,042,803	$	—	$	—
Multifamily	77,207		596,682		—		—
Bridge
Renovate / Build for Rent ("BFR")(2)	—		—		432,363		377,947
Single Asset Bridge ("SAB")(3)	—		—		78,631		283,186
Multifamily(4)	—		—		648,972		148,096
Third-Party Originated	—		—		6,247		1,056
Total Residential Investor Loans	$	177,618	$	2,639,485	$	1,166,213	$	810,285

We may amend or modify a loan depending on the loan's specific facts and circumstances. These loan modifications typically include amendments and restructuring and include terms such as additional time for the borrower to refinance or sell the collateral property, interest rate reductions and/or deferral of scheduled principal and/or interest payments. In some instances, a loan amendment or restructuring may bring the loan out of delinquent status. In other instances, including in the case of Build for Rent ("BFR") loans, a loan modification may amend the project's underlying budget (including allocation of hard/soft costs, interest reserves and other items) or construction or completion milestones, if warranted, based on progress versus the initial budget. Because they finance the construction of rental housing, many BFR projects do not generate net operating income until the later stages of the loan term. As such, BFR loans are sized to include allocations for interest expense as well as construction costs and other standard budget items. In exchange for a modification, we may receive a partial repayment of principal, a short-term accrual of capitalized interest for a portion of interest due, a capital infusion to replenish interest or capital improvement reserves and/or termination of all or a portion of the remaining unfunded loan commitment.

The fair value of residential investor bridge loans of $1.94 billion at December 31, 2024 declined from $2.10 billion at December 31, 2023. Changes in the value of these loans during the year ending December 31, 2024 primarily reflect principal repayments and reductions in the fair values for non-accrual bridge loans and certain modified bridge loans since the fourth quarter of 2023. For the year ending December 31, 2024, we modified or put into forbearance loans with a total aggregate unpaid principal balance of $848 million. Of this balance, loans with reductions in contractual interest rates (including, in certain cases, deferrals of interest) had an aggregate unpaid principal balance of $663 million, and an aggregate fair value of $645 million at December 31, 2024. The modification terms on these loans involved conversions of the contractual interest rates on the loans from floating to fixed and/or deferrals of a portion of the stated pay rate to an extended date or to maturity. In 2024, modifications on these loans maintained a weighted average contractual interest rate of approximately 9.09%, of which 4.46% represented deferred interest.

In addition, for the year ending December 31, 2024, we modified four BFR loans with a total aggregate unpaid principal balance of $142 million and an aggregate fair value of $140 million at December 31, 2024. These loans were a subset of the $848 million of modified loans and had previously been modified in 2024. The previous modifications on these loans amended the interest rate to a combination of current pay and deferred interest. During the year ending December 31, 2024, the modifications on these loans amended the allocation of loan commitments between hard and soft costs, interest expense and other expenses, provided maturity extensions of 10 months on average (subject to mandatory partial repayments during the loan term), and established a hard lockbox and funding of interest reserves to cover debt service shortfalls.

A loan is generally placed on non-accrual status when it is probable that all principal and interest due under the contractual terms will not be collected and a loan is past due more than 90 days. At the time a loan is placed on non-accrual status, all previously accrued but uncollected interest is reversed against interest income and interest subsequently collected is recognized on a cash basis when it is received. A loan remains on non-accrual status until the loan balance is deemed collectible or until such time the loan qualifies to be placed back on accrual status. Generally, a loan is placed back on accrual status when the loan becomes contractually current or the collection of past due and future payments is reasonably assured either through reinstatement by the borrower, estimated net equity in the underlying real estate property or both.

At December 31, 2024 and December 31, 2023, residential investor loans with an aggregate unpaid principal balance of $151 million and $340 million, respectively, and an aggregate fair value of $104 million and $312 million, respectively, were on non-accrual status. Of this balance, loans with an aggregate unpaid principal balance of zero and $207 million were less than 90 days past due (including loans that were contractually current) as of December 31, 2024 and December 31, 2023, respectively.

Table 8.6 – Geographic Concentration of Residential Investor Loans


	December 31, 2024
Geographic Concentration (by Principal Balance)	Term at Redwood		Term at CAFL		Bridge at Redwood		Bridge at CAFL
Texas	18	%	17	%	3	%	26	%
New Jersey	10	%	6	%	7	%	4	%
California	6	%	4	%	5	%	12	%
Tennessee	4	%	2	%	3	%	3	%
Illinois	2	%	6	%	20	%	6	%
Alabama	2	%	2	%	7	%	1	%
Florida	1	%	7	%	9	%	7	%
New York	1	%	7	%	2	%	2	%
Ohio	1	%	7	%	—	%	6	%
Connecticut	—	%	7	%	—	%	—	%
Georgia	—	%	6	%	19	%	7	%
Other states (none greater than 5%)	55	%	29	%	25	%	26	%
Total	100	%	100	%	100	%	100	%


	December 31, 2023
Geographic Concentration (by Principal Balance)	Term at Redwood		Term at CAFL		Bridge at Redwood		Bridge at CAFL
Florida	10	%	7	%	10	%	7	%
California	8	%	4	%	5	%	8	%
Texas	8	%	16	%	13	%	22	%
Georgia	5	%	5	%	18	%	13	%
New Jersey	4	%	7	%	6	%	4	%
Tennessee	2	%	2	%	3	%	7	%
Alabama	1	%	3	%	6	%	3	%
Connecticut	—	%	8	%	2	%	2	%
New York	—	%	7	%	2	%	3	%
Illinois	—	%	5	%	13	%	6	%
Other states (none greater than 5%)	62	%	36	%	22	%	25	%
Total	100	%	100	%	100	%	100	%