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Residential Investor Loans (Tables)
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Schedule of Classifications and Carrying Values of CoreVest Loans, Activity of CoreVest Loans, Activity of CoreVest Loans Held-for-Investment, Characteristics of CoreVest Loans and CoreVest Loans Collateral/Strategy Type 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, 2024Freddie Mac
(In Thousands)RedwoodSequoiaSLSTTotal
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, 2023Freddie Mac
(In Thousands)RedwoodSequoiaSLSTTotal
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 
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, 2024Residential Investor TermResidential Investor Bridge
(In Thousands)RedwoodCAFLRedwoodCAFLTotal
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, 2023Residential Investor TermResidential Investor Bridge
(In Thousands)RedwoodCAFLRedwoodCAFLTotal
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 
The following table provides the activity of residential investor loans during the years ended December 31, 2024 and 2023.
Table 8.2 – Activity of Residential Investor Loans at Redwood
Year Ended December 31, 2024Year Ended December 31, 2023
(In Thousands)Term at RedwoodBridge at RedwoodTerm at RedwoodBridge at Redwood
Principal balance of loans originated$720,537 $967,811 $525,130 $1,153,568 
Principal balance of loans acquired19,246 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.
(4)Represents net market valuation changes from the time a loan is originated to when it is sold, securitized or transferred to our Redwood Investments portfolio. See Table 5.1 for additional detail on Mortgage banking activities income.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 CAFLTerm 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).
The following tables summarize the characteristics of the residential investor loans owned at Redwood and at consolidated CAFL entities at December 31, 2024 and 2023.
Table 8.4 – Characteristics of Residential Investor Loans
December 31, 2024Term at Redwood
Term at
CAFL(1)
Bridge at RedwoodBridge 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 coupon6.84 %5.35 %9.11 %9.76 %
Weighted average remaining loan term (years)9411
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, 2023Term at Redwood
Term at
CAFL(1)
Bridge at RedwoodBridge 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 coupon6.92 %5.34 %10.41 %10.82 %
Weighted average remaining loan term (years)7511
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.
(2)The number of loans 90+ days delinquent includes loans in foreclosure.
(3)May include loans that are less than 90 days delinquent.
The following table presents the unpaid principal balance of residential investor loans recorded on our consolidated balance sheets at December 31, 2024 by collateral/strategy type.
Table 8.5 – Residential Investor Loans Collateral/Strategy Type
December 31, 2024Term 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 $— $— 
Multifamily77,207 596,682 — — 
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 
(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 accounting guidance for collateralized financing entities.
(2)Includes loans to finance acquisition and/or stabilization of existing housing stock or to finance new construction of residential properties for rent.
(3)Includes loans for light to moderate renovation of residential investor and small multifamily properties (generally less than 20 units).
(4)Includes loans for predominantly light to moderate rehabilitation projects on multifamily properties.
Schedule of Geographic Concentration of CoreVest Loans
The following table presents the geographic concentration of residential consumer loans recorded on our consolidated balance sheets at December 31, 2024 and 2023.
Table 7.6 – Geographic Concentration of Residential Consumer Loans
 December 31, 2024
Geographic Concentration
(by Principal Balance) 		Held-for-SaleHeld-for-
Investment at Sequoia		Held-for-Investment at Freddie Mac SLST
California26 %31 %14 %
Washington12 %8 %2 %
Texas8 %10 %3 %
Colorado6 %6 %1 %
Florida5 %7 %10 %
Illinois3 %2 %6 %
New Jersey2 %2 %7 %
New York1 %2 %11 %
Maryland— %1 %5 %
Other states (none greater than 5%)37 %31 %41 %
Total100 %100 %100 %
 December 31, 2023
Geographic Concentration
(by Principal Balance) 		Held-for-SaleHeld-for-
Investment at Sequoia		Held-for-Investment at Freddie Mac SLST
California25 %33 %14 %
Washington16 %7 %2 %
Texas8 %11 %3 %
Florida7 %5 %10 %
Colorado4 %7 %1 %
New Jersey2 %1 %7 %
Illinois2 %3 %5 %
New York1 %2 %11 %
Maryland1 %2 %5 %
Other states (none greater than 5%)34 %29 %42 %
Total100 %100 %100 %
The following table presents the geographic concentration of residential investor loans recorded on our consolidated balance sheets at December 31, 2024 and December 31, 2023.
Table 8.6 – Geographic Concentration of Residential Investor Loans
 December 31, 2024
Geographic Concentration
(by Principal Balance) 		Term at RedwoodTerm at CAFLBridge at RedwoodBridge at CAFL
Texas18 %17 %3 %26 %
New Jersey10 %6 %7 %4 %
California6 %4 %5 %12 %
Tennessee4 %2 %3 %3 %
Illinois2 %6 %20 %6 %
Alabama2 %2 %7 %1 %
Florida1 %7 %9 %7 %
New York1 %7 %2 %2 %
Ohio1 %7 %— %6 %
Connecticut— %7 %— %— %
Georgia— %6 %19 %7 %
Other states (none greater than 5%)55 %29 %25 %26 %
Total100 %100 %100 %100 %
 December 31, 2023
Geographic Concentration
(by Principal Balance) 		Term at RedwoodTerm at CAFLBridge at RedwoodBridge at CAFL
Florida10 %7 %10 %7 %
California8 %4 %5 %8 %
Texas8 %16 %13 %22 %
Georgia5 %5 %18 %13 %
New Jersey4 %7 %6 %4 %
Tennessee2 %2 %3 %7 %
Alabama1 %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 %
Total100 %100 %100 %100 %