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Residential Consumer Loans (Tables)
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Schedule of Classifications and Fair Value of Residential Consumer Loans The following table summarizes the classifications and fair values of the securitized and unsecuritized residential consumer loans owned at December 31, 2025 and 2024.
Table 7.1 – Classifications and Fair Values of Residential Consumer Loans
December 31, 2025Unsecuritized LoansSecuritized LoansSecuritized Re-Performing Loans
(In Thousands)Total
Held-for-sale at fair value$3,092,014 $— $— $3,092,014 
Held-for-investment at fair value— 14,843,747 — 14,843,747 
Total Residential Consumer Loans$3,092,014 $14,843,747 $— $17,935,761 
December 31, 2024Unsecuritized LoansSecuritized LoansSecuritized Re-Performing Loans
(In Thousands)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 
The following table summarizes the classifications and fair values of the securitized and unsecuritized residential investor loans at December 31, 2025 and 2024.
Table 8.1 – Classifications and Fair Values of Residential Investor Loans
December 31, 2025Residential Investor TermResidential Investor Bridge
(In Thousands)UnsecuritizedSecuritizedUnsecuritizedSecuritizedTotal
Held-for-sale at fair value (1)
$202,422 $— $310,931 $— $513,353 
Held-for-investment at fair value— 1,985,910 — 1,117,401 3,103,311 
Total Residential Investor Loans$202,422 $1,985,910 $310,931 $1,117,401 $3,616,664 
December 31, 2024Residential Investor TermResidential Investor Bridge
(In Thousands)UnsecuritizedSecuritizedUnsecuritizedSecuritizedTotal
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 
(1)At December 31, 2025, Residential investor bridge loans held-for-sale include $14 million of loans recorded at the lower of cost or market value for which the carrying value approximates the fair value.
The following table provides the activity of unsecuritized residential investor loans during the years ended December 31, 2025 and 2024.
Table 8.2 – Activity of Residential Investor Loans at Redwood
Year Ended December 31, 2025Year Ended December 31, 2024
(In Thousands)Unsecuritized Term LoansUnsecuritized Bridge LoansUnsecuritized Term LoansUnsecuritized Bridge Loans
Principal balance of loans originated$855,852 $881,292 $720,537 $967,811 
Principal balance of loans acquired (1)
43,764 147,102 19,246 15,677 
Principal balance of loans sold to third parties (2)
827,982 1,392,602 713,314 516,411 
Transfers of loans between portfolios (3)
— 219,322 — (290,159)
Consolidation of securitized CAFL bridge loans — 805,008 298,553 — 
(1)For the years ended December 31, 2025 and 2024, balance includes loan repurchases. Additionally, this balance includes loans acquired from a residential construction loan originator, with whom we have a strategic equity method investment. During 2025, we acquired $147 million of loans from this company, sold $123 million of these loans and received $24 million of principal repayments. The financing arrangements and loan purchase agreements between the parties were terminated effective December 31, 2025, and there are no ongoing obligations between the parties. See Note 12 for further information.
(2)For the years ended December 31, 2025 and 2024 the principal balance of loans sold to third parties is net of $88 million and $49 million, respectively, related to construction draws on residential investor bridge loans sold to our joint ventures. See Note 12 for additional information on these joint ventures.
(3)Transfers of unsecuritized residential investor term loans between portfolios represents the transfer of loans from held-for-sale to held-for-investment associated with consolidated term securitizations. Transfers of unsecuritized bridge loans represents the transfer of residential investor bridge loans from "Unsecuritized Bridge" to "Securitized Bridge" 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.
Residential Investor Loan Characteristics
The following table provides the activity of securitized residential investor loans held-for-investment during the years ended December 31, 2025 and 2024.
Table 8.3 – Activity of Securitized Residential Investor Loans Held-for-Investment
Year Ended December 31,
20252024
(In Thousands)Securitized TermSecuritized BridgeSecuritized TermSecuritized Bridge
Net market valuation gains (losses) recorded$41,701 $(22,775)$61,559 $6,198 
Fair value of loans transferred to HFI— 219,322 — 290,159 
The following tables summarize the characteristics of securitized and unsecuritized residential investor loans at December 31, 2025 and 2024.
Table 8.4 – Characteristics of Residential Investor Loans
December 31, 2025Unsecuritized Term
Securitized Term(1)
Unsecuritized Bridge
Securitized Bridge(1)
(Dollars in Thousands)
Unpaid principal balance$205,584 $2,083,080 $339,394 $1,099,350 
Average UPB of loans1,326 3,041 3,058 1,323 
Fair value of loans202,422 1,985,910 296,518 1,117,401 
Loans held at lower of cost or market— — 14,414 — 
Weighted average coupon6.72 %5.26 %8.96 %8.95 %
Weighted average remaining loan term (years)13411
Market value of loans pledged as collateral under debt facilities$109,652 N/A$255,255 N/A
Delinquency information
Unpaid principal balance of loans with 90+ day delinquencies (2)
$52,380 $209,560 $89,504 $48,438 
Average UPB of 90+ days delinquent loans (2)
6,547 4,459 5,967 1,425 
Fair value of loans with 90+ day delinquencies (2)
44,680 N/A64,998 N/A
Unpaid principal balance of loans in foreclosure (3)
— 28,089 22,838 18,882 
Average UPB of loans in foreclosure (3)
— 2,554 22,838 1,259 
Fair value of loans in foreclosure (3)
— N/A16,672 N/A
December 31, 2024Unsecuritized Term
Securitized Term(1)
Unsecuritized Bridge
Securitized Bridge(1)
(Dollars in Thousands)
Unpaid principal balance$177,618 $2,639,485 $1,166,213 $810,285 
Average UPB of loans1,759 3,084 5,350 1,605 
Fair value of loans158,637 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/A102,321 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/A67,858 3,715 
(1)The fair value of the Term and Bridge loans held by consolidated 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 and loans where foreclosure is being pursued as a disposition strategy.
The following table presents the UPB of residential investor loans recorded on our consolidated balance sheets at December 31, 2025 and 2024 by collateral/product type.
Table 8.5 – Residential Investor Loans Collateral/Product Type
December 31, 2025Unsecuritized TermSecuritized TermUnsecuritized BridgeSecuritized Bridge
(Dollars in Thousands)
Term
Term Loans:
Single-family rental$93,605 $1,620,277 $— $— 
Multifamily (1)
55,299 462,803 — — 
DSCR56,680 — — — 
Bridge
Bridge Loans:
BFR (2)
— — 106,748 452,133 
SAB (3)
— — 2,316 48,364 
RTL— — 42,107 486,352 
Multifamily (1)
— — 181,977 111,446 
Other— — 6,246 1,055 
Total Residential Investor Loans$205,584 $2,083,080 $339,394 $1,099,350 
December 31, 2024Unsecuritized TermSecuritized TermUnsecuritized BridgeSecuritized Bridge
(Dollars in Thousands)
Term
Term Loans:
Single-Family Rental$100,411 $2,042,803 $— $— 
Multifamily (1)
77,207 596,682 — — 
Bridge
Bridge Loans:
BFR (2)
— — 432,363 377,947 
SAB (3)
— — 399 21,645 
RTL— — 78,232 261,541 
Multifamily (1)
— — 648,972 148,096 
Other— — 6,247 1,056 
Total Residential Investor Loans$177,618 $2,639,485 $1,166,213 $810,285 
(1)Includes loans for predominantly light to moderate rehabilitation projects on multifamily properties.
(2)Includes loans to finance acquisition and/or stabilization of existing housing stock for light to moderate renovation or to finance new construction of residential properties for rent.
(3)Includes loans for light to moderate renovation of residential and small multifamily properties (generally less than 20 units).
Schedule of Characteristics of Residential Consumer Loans Held-for-Sale
The following table summarizes the characteristics of residential consumer loans held-for-sale at December 31, 2025 and 2024.
Table 7.2 – Characteristics of Residential Consumer Loans Held-for-Sale
December 31, 2025December 31, 2024
(Dollars in Thousands)Unsecuritized LoansUnsecuritized Loans
UPB$3,022,360 $1,000,663 
Fair value of loans$3,092,014 $1,013,547 
Market value of loans pledged as collateral under short-term borrowing agreements$3,066,067 $1,005,926 
Weighted average coupon6.59 %6.56 %
Schedule of Activity of Residential Consumer Loans Held-for-Sale
The following table provides the activity of residential consumer loans held-for-sale ("HFS") during the years ended December 31, 2025 and 2024.
Table 7.3 – Activity of Residential Consumer Loans Held-for-Sale
Year Ended December 31,
(In Thousands)20252024
Principal balance of loans acquired$14,616,596 $7,043,177 
Principal balance of loans sold3,958,825 1,650,357 
Principal balance of deconsolidated securitized re-performing loans1,439,178 — 
Principal balance of loans transferred from HFS to HFI8,504,707 5,208,677 
Schedule of Characteristics of Residential Consumer Loans Held-for-Investment The following tables summarize the characteristics of the securitized residential consumer loans held-for-investment at December 31, 2025 and 2024.
Table 7.4 – Characteristics of Residential Consumer Loans Held-for-Investment
December 31, 2025Securitized Loans
(Dollars in Thousands)
UPB$15,048,820 
Average loan balance (UPB)$915 
Fair value of loans (1)
$14,843,747 
Weighted average coupon5.68 %
Delinquency information
UPB of loans with 90+ day delinquencies (2)
$42,872 
Average 90+ days delinquent balance (UPB)766 
UPB of loans in foreclosure16,709 
Average foreclosure balance (UPB)726 
December 31, 2024Securitized LoansSecuritized Re-Performing Loans
(Dollars in Thousands)
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 coupon5.35 %4.49 %
Delinquency information
UPB of loans with 90+ day delinquencies (2)
$19,480 $106,910 
Average 90+ days delinquent balance (UPB)$573 $172 
UPB of loans in foreclosure$10,493 $41,913 
Average foreclosure balance (UPB)$552 $185 
(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 CFEs, and are recorded in Investment fair value changes, net on our consolidated statements of (loss) income.
(2)For loans held at consolidated entities, the number and UPB of loans 90+ days delinquent includes loans in foreclosure.
Schedule of Activity of Residential Consumer Loans Held-for-Investment at Consolidated Entities
The following table provides the activity of residential consumer loans held-for-investment at consolidated entities during the years ended December 31, 2025 and 2024.
Table 7.5 – Activity of Residential Consumer Loans Held-for-Investment
(In Thousands)Year Ended December 31, 2025Year Ended December 31, 2024
Principal balance of loans transferred from HFS to HFI (1)
$8,504,707 $5,208,677 
Net market valuation gains (losses) recorded (2)
343,872 (18,816)
(1)Represents the transfer of loans from held-for-sale to held-for-investment associated with residential consumer loan securitizations.
(2)For the ended December 31, 2025, includes $64 million of net market valuation gains on securitized re-performing loans prior to being transferred to HFS on June 30, 2025.
Schedule of Geographic Concentration of Residential Consumer Loans
The following table presents the geographic concentration of residential consumer loans recorded on our consolidated balance sheets at December 31, 2025 and 2024.
Table 7.6 – Geographic Concentration of Residential Consumer Loans
 December 31, 2025
Geographic Concentration
(by Principal Balance) 		Held-for-SaleHeld-for-
Investment		Securitized Re-Performing Loans
California28 %29 %— %
Florida8 %7 %— %
Texas6 %9 %— %
Washington5 %8 %— %
New York5 %2 %— %
Colorado3 %5 %— %
Other states (none greater than 5%)45 %40 %— %
Total100 %100 %— %
 December 31, 2024
Geographic Concentration
(by Principal Balance) 		Held-for-SaleHeld-for-
Investment		Securitized Re-Performing Loans
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 %
The following table presents the geographic concentration of residential investor loans recorded on our consolidated balance sheets at December 31, 2025 and 2024.
Table 8.6 – Geographic Concentration of Residential Investor Loans
 December 31, 2025
Geographic Concentration
(by Principal Balance) 		Unsecuritized TermSecuritized TermUnsecuritized BridgeSecuritized Bridge
Indiana20 %4 %1 %— %
Ohio18 %5 %6 %1 %
Georgia9 %5 %12 %6 %
New York7 %8 %2 %1 %
Illinois5 %6 %1 %3 %
Texas3 %19 %3 %18 %
California3 %5 %5 %15 %
New Jersey3 %5 %7 %4 %
Florida2 %7 %8 %12 %
Oregon2 %— %3 %6 %
Louisiana1 %2 %33 %— %
Arizona— %2 %11 %4 %
Washington— %1 %2 %5 %
Connecticut— %7 %— %— %
Other states (none greater than 5%)27 %24 %6 %25 %
Total100 %100 %100 %100 %
 December 31, 2024
Geographic Concentration
(by Principal Balance)		Unsecuritized TermSecuritized TermUnsecuritized BridgeSecuritized Bridge
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 %