Table 15.1 – Components of Other Assets


(In Thousands)	December 31, 2025		December 31, 2024
Accrued interest receivable	$	130,955	$	115,832
Margin receivable	33,439		28,313
Investment receivable	38,082		69,793
Real estate owned	124,270		91,927
Deferred tax asset	12,352		27,145
Intangible assets	10,623		19,049
Operating lease right-of-use assets	8,902		9,167
Fixed assets and leasehold improvements (1)	6,354		4,674
Other (2)	48,545		49,817
Total Other Assets	$	413,522	$	415,717

Table 15.2 – REO Activity by Loan Type


	Year Ended December 31, 2025
(In Thousands)	Bridge Loans (1)		Sequoia Securitized Loans		Securitized Re-Performing Loans		CAFL Securitized Term Loans		Total
Balance at beginning of year	$	77,678	$	—	$	2,987	$	11,262	$	91,927
Transfers to REO	128,171		1,984		2,449		12,155		144,759
Liquidations	(69,884)		—		(4,070)		(3,514)		(77,468)
Deconsolidation	—		—		(2,489)		—		(2,489)
Changes in fair value, net (2)	(33,582)		—		1,123		—		(32,459)
Balance at End of Year	$	102,383	$	1,984	$	—	$	19,903	$	124,270


	Year Ended December 31, 2024
(In Thousands)	Bridge Loans (1)		Sequoia Securitized Loans		Securitized Re-Performing Loans		CAFL Securitized Term Loans		Total
Balance at beginning of year	$	87,757	$	—	$	3,158	$	2,684	$	93,599
Transfers to REO	11,085		—		2,887		8,582		22,554
Liquidations	(4,953)		—		(3,557)		(4)		(8,514)
Changes in fair value, net (2)	(16,211)		—		499		—		(15,712)
Balance at End of Year	$	77,678	$	—	$	2,987	$	11,262	$	91,927

Table 15.3 – Intangible Assets – Activity


	Intangible Assets at Acquisition		Accumulated Amortization at December 31, 2025		Carrying Value at December 31, 2025		Weighted Average Amortization Period (in years)
(Dollars in Thousands)
Borrower network	$	56,300	$	(45,677)	$	10,623	7
Broker network	18,100		(18,100)		—		5
Non-compete agreements	11,400		(11,400)		—		3
Tradenames	4,400		(4,400)		—		3
Developed technology	1,800		(1,800)		—		2
Loan administration fees on existing loan assets	2,600		(2,600)		—		1
Total	$	94,600	$	(83,977)	$	10,623	6


	Intangible Assets at Acquisition		Accumulated Amortization at December 31, 2024		Carrying Value at December 31, 2024		Weighted Average Amortization Period (in years)
(Dollars in Thousands)
Borrower network	$	56,300	$	(37,635)	$	18,665	7
Broker network	18,100		(18,100)		—		5
Non-compete agreements	11,400		(11,083)		317		3
Tradenames	4,400		(4,333)		67		3
Developed technology	1,800		(1,800)		—		2
Loan administration fees on existing loan assets	2,600		(2,600)		—		1
Total	$	94,600	$	(75,551)	$	19,049	6

All of our intangible assets are amortized on a straight-line basis. For the years ended December 31, 2025 and 2024, we recorded intangible asset amortization expense of $8 million and $9 million, respectively. Estimated future amortization expense is summarized in the table below.

On at least an annual basis, we evaluate our finite-lived intangible assets for impairment indicators and additionally evaluate the useful lives of our intangible assets to determine if revisions to the remaining periods of amortization are warranted. We reviewed our finite-lived intangible assets and determined that the estimated lives were appropriate and that there were no indicators of impairment at December 31, 2025.

Table 15.5 – Components of Accrued Expenses and Other Liabilities


(In Thousands)	December 31, 2025		December 31, 2024
Payable to non-controlling interests	$	120,177	$	123,258
Accrued interest payable	81,851		70,988
Margin payable	47,264		20,340
Accrued compensation	39,964		34,002
Unsettled trades	32,046		5,127
Accrued operating expenses	11,617		11,074
Operating lease liabilities	10,666		11,028
Current accounts payable	9,698		6,803
Repurchase reserve	7,466		4,727
Bridge loan holdbacks (1)	2,253		2,148
Preferred stock dividends payable	1,478		1,478
Accrued tax payable	1,437		—
Guarantee obligations	1,267		2,806
Other	31,751		19,958
Total Accrued Expenses and Other Liabilities	$	398,935	$	313,737

Redwood and a third-party co-investor, through two partnership entities consolidated by Redwood, purchased servicer advances and excess MSRs related to a portfolio of residential mortgage loans serviced by the co-investor (see Note 11 and Note 16 for additional information on the partnership entities and associated investments). We account for the co-investor’s interests in the entities as liabilities and at December 31, 2025, the carrying value of their interests was $28 million, representing their current economic interest in the entities. Earnings from the partnership entities are allocated to the co-investor on a proportional basis and during the

In 2021 and 2023, Redwood and a third-party investor co-sponsored the transfer and securitization of HEI through two HEI securitization entities. Other third-party investors contributed HEI into these securitizations through Redwood and retained subordinate beneficial interests issued by the securitization entities alongside Redwood. See Note 10 for a further discussion of the HEI securitizations, including the call of one of the HEI securitization entities in 2025. We account for the co-investor's interest in the one remaining HEI securitization entity as a liability, and at December 31, 2025, the carrying value of their interest was $44 million, representing the fair value of their economic interest in the beneficial interest issued by the HEI entity. During the years ended December 31, 2025, 2024 and 2023, the investors' share of earnings from their retained interests (for which positive earnings are reflected as an expense to Redwood in our consolidated statements of (loss) income) were negative $8 million, positive $23 million, and positive $8 million, respectively, and were recorded through HEI Income, net on our consolidated statements of (loss) income. During the third quarter of 2025, we called one of our HEI securitization transactions and paid off the related outstanding ABS issued.

During the year ended December 31, 2025, we completed two CAFL bridge loan securitizations sponsored by one of our joint ventures. These transactions involved the transfer and securitization of bridge loans contributed from the joint venture and from Redwood through two bridge securitization entities. Each of the joint venture and Redwood retained its proportionate share of subordinate beneficial interests issued by the securitization entities. We account for the joint venture's interest in the bridge loan securitization entities as a liability and at December 31, 2025, the carrying value of their interests were $32 million, representing the fair value of their economic interest in the beneficial interest issued. During the year ended December 31, 2025, the joint venture's share of recognized income was $12 million related to its retained interests in these two securitizations, resulting in a $12 million net expense to Redwood in our consolidated statements of (loss) income.

In 2024, we completed a CAFL securitization of bridge loans sponsored by one of our joint ventures. This transaction involved the transfer and securitization of bridge loans contributed from the joint venture and from Redwood through one bridge securitization entity. Each of the joint venture and Redwood retained its proportionate share of subordinate beneficial interests issued by the securitization entity. We account for the joint venture's interest in the bridge loan securitization entity as a liability and at December 31, 2025, the carrying value of their interest was $17 million, representing the fair value of their economic interest in the beneficial interest issued. During the year ended December 31, 2025, the joint venture recognized income of $2 million related to its retained interest in this securitization, resulting in a $2 million net expense to Redwood in our consolidated statements of (loss) income.

Operating lease liabilities are equal to the present value of our remaining lease payments discounted at our incremental borrowing rate and the operating lease right-of-use assets are equal to the operating lease liabilities adjusted for our deferred rent liabilities. These balances are reduced as lease payments are made. See Note 19 for additional information on leases.

Margin receivable and payable resulted from margin calls between us and our counterparties under derivatives, master repurchase agreements, and warehouse facilities, whereby we or the counterparty posted collateral. Through December 31, 2025, we had met all margin calls due.

Accrued compensation includes costs related to our cash-settled awards, bonuses, deferred compensation, vacation and commissions. Our cash-settled awards were granted to certain executive officers and non-executive employees. These awards will be payable in cash with a vested award value based on the closing market price of our common stock on their respective final vesting dates. These awards are classified as liabilities in Accrued expenses and other liabilities on our consolidated balance sheets, and are being amortized over their respective vesting periods on a straight-line basis, adjusted for changes in the value of our common stock at the end of each reporting period.

Table 15.6 – Activities of Cash Settled Awards by Award Type


	Year Ended December 31, 2025
(In Thousands)	Cash-Settled Restricted Stock Units		Cash-Settled Deferred Stock Units		Cash-Settled Performance Stock Units		Total
Cash-settled award liability at December 31, 2024	$	168	$	2,894	$	2,316	$	5,378
Compensation expense (income)	1,830		515		(1,436)		909
Cash-settled award vesting payout	(1,761)		(1,726)		—		(3,487)
Cash-settled award liability at December 31, 2025	$	237	$	1,683	$	880	$	2,800

During the year ended December 31, 2025, $5 million of csRSUs were granted to certain executive officers that will vest over the next four years through December 2029. On each vesting date over the four-year vesting period, cash in an amount equal to the value of the common stock underlying the csRSUs that vest on such vesting date will be distributed to the recipients. At December 31, 2025 the unamortized compensation cost of csRSUs granted in 2025 and prior years was $9 million.

In connection with the December 2025 PSU grant as described in Note 22, one half of the PSUs granted to certain executive officers are cash settled. The cash settled portion of these awards totaled $3 million and vest over three years through January 1, 2029, subject to meeting certain performance criteria. At December 31, 2025 the unamortized compensation cost of the cash settled portion of these PSUs was $3 million. See Note 22 for the performance vesting criteria of these awards.

The end of the vesting period for 663,499 csPSU awards that were granted in 2023 was January 1, 2026, and based upon the performance-based vesting criteria of these awards, approximately 152,191 reference shares of our common stock underlying these PSUs qualified for vesting and cash settlement, subject to approval by our Board of Directors during the first quarter of 2026.