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Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
We report our results through five reportable segments: Sequoia Mortgage Banking, Aspire Mortgage Banking, CoreVest Mortgage Banking, Redwood Investments and Legacy Investments. 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.
During the three months ended March 31, 2026, we established Aspire Mortgage Banking as a new reportable segment to separately disclose financial results for our expanded-credit residential mortgage platform, which was previously included within the Sequoia Mortgage Banking segment. This change reflects the manner in which the operations are evaluated by the CODM and the increasing scale and distinct operating characteristics of this platform. Aspire Mortgage Banking includes our non-QM loan conduit, which focuses on loans and investments under expanded underwriting criteria. This change in segment presentation aligns with how management assesses performance under ASC 280, Segment Reporting, and has been applied retrospectively to all prior periods presented in this Quarterly Report on Form 10-Q. This change had no impact on the consolidated financial statements and all prior period amounts were conformed to the current presentation.
The accounting policies applied to the segments are the same as those described in Note 3 to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2025. During the three months ended March 31, 2026, we began allocating our preferred stock dividend expense as well as our corporate unsecured financing costs, comprised of interest expense on our unsecured promissory notes, trust preferred securities, convertible debt, and senior notes, to our operating or reportable segments for informational purposes. Corporate and other activities that are not directly attributable to the Company’s operating segments are included in Corporate/Other. This change had no impact on the consolidated financial statements and all prior period amounts were conformed to the current presentation.
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. Our loans are accounted for under the fair value option or at the lower of cost or market value for which the carrying value approximates the fair value. Amounts transferred between segments are accounted for at fair value at the time of transfer. For a full description of our segments, see Part I, Item 1—Business in our Annual Report on Form 10-K for the year ended December 31, 2025.
The following tables present financial information by segment for the three months ended March 31, 2026 and 2025.
Table 4.1 – Business Segment Financial Information
Three Months Ended March 31, 2026
(In Thousands)SequoiaAspireCoreVestRedwood InvestmentsLegacy InvestmentsCorporate/
Other		Total
Interest income$61,306 $18,408 $4,192 $268,748 $4,000 $265 $356,919 
Interest expense(36,337)(14,766)(2,083)(256,306)(12,710)— (322,202)
Net interest income (expense)24,969 3,642 2,109 12,442 (8,710)265 34,717 
Non-interest income
Mortgage banking activities, net, excluding risk management derivatives57,962 (1,544)6,928 — — — 63,346 
Risk management derivatives (losses) gains, net (1)
(35,911)4,228 301 — — — (31,382)
Total Mortgage banking activities, net22,051 2,684 7,229 — — — 31,964 
Investment fair value changes, net, excluding risk management derivatives— — (265)22,815 (7,475)— 15,075 
Risk management derivatives (losses) gains, net (1)
— — — (38,258)(16)— (38,274)
Total Investment fair value changes, net— — (265)(15,443)(7,491)— (23,199)
HEI income, net— — — 575 6,534 — 7,109 
Servicing income, net— — — 8,021 — — 8,021 
Fee income (loss), net— — 2,827 192 (133)— 2,886 
Other income, net— — 589 898 950 — 2,437 
Realized gains, net— — — — — — — 
Total non-interest income (loss), net22,051 2,684 10,380 (5,757)(140)— 29,218 
General and administrative expenses(7,049)(2,466)(12,988)(3,384)(16)(23,455)(49,358)
Portfolio management costs— — — (4,155)(4,547)(27)(8,729)
Loan acquisition costs(2,841)(1,046)(2,842)— — — (6,729)
Other expenses— — (2,010)(5,115)— — (7,125)
Benefit from (Provision for) income taxes1,245 (342)2,061 (1,373)610 302 2,503 
Net Income (Loss)$38,375 $2,472 $(3,290)$(7,342)$(12,803)$(22,915)$(5,503)
Dividends on preferred stock(544)(204)(87)(658)(257)— (1,750)
Net Income (Loss) Available (Related) To Common Stockholders (2)
$37,831 $2,268 $(3,377)$(8,000)$(13,060)$(22,915)$(7,253)
Total Assets$2,573,719 $891,538 $329,333 $21,903,485 $945,021 $172,701 $26,815,797 
(1)Represents market valuation changes of derivatives that were used to manage risks associated with our Mortgage Banking platforms, Redwood Investments and Legacy Investments. Mortgage banking activities, net, 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 (Loss).
Three Months Ended March 31, 2025
(In Thousands)SequoiaAspireCoreVestRedwood InvestmentsLegacy InvestmentsCorporate/
Other		Total
Interest income$31,639 $44 $4,394 $201,570 $34,151 $296 $272,094 
Interest expense(17,017)(227)(3,011)(185,046)(38,851)— (244,152)
Net interest income (expense)14,622 (183)1,383 16,524 (4,700)296 27,942 
Non-interest income (loss)
Mortgage banking activities, net, excluding risk management derivatives1,131 233 13,847 — — — 15,211 
Risk management derivatives gains, net (1)
20,787 — (2,945)— — — 17,842 
Total Mortgage banking activities, net21,918 233 10,902 — — — 33,053 
Investment fair value changes, net, excluding risk management derivatives— — — (22,748)(3,071)— (25,819)
Risk management derivatives (losses), net (1)
— — — 26,291 (5,660)— 20,631 
Total Investment fair value changes, net— — — 3,543 (8,731)— (5,188)
HEI income, net— — — 55 10,111 — 10,166 
Servicing income, net— — — 3,407 — — 3,407 
Fee income, net— — 3,079 142 (870)— 2,351 
Other income (loss), net— — — 507 — 1,043 1,550 
Realized gains, net— — — 567 — — 567 
Total non-interest income (loss), net21,918 233 13,981 8,221 510 1,043 45,906 
General and administrative expenses(5,418)(928)(9,958)(1,870)(16)(19,281)(37,471)
Portfolio management costs— — — (2,060)(4,431)— (6,491)
Loan acquisition costs(1,071)— (2,497)— — — (3,568)
Other expenses— — (2,202)(1,707)— — (3,909)
(Provision for) Benefit from income taxes(7,191)(70)648 304 — 47 (6,262)
Net Income (Loss)$22,860 $(948)$1,355 $19,412 $(8,637)$(17,895)$16,147 
Dividends on preferred stock(406)(17)(67)(552)(708)— (1,750)
Net Income (Loss) Available (Related) To Common Stockholders (2)
$22,454 $(965)$1,288 $18,860 $(9,345)$(17,895)$14,397 
Total Assets$1,543,436 $15,681 $343,985 $14,514,702 $3,087,249 $366,722 $19,871,775 
(1)Represents market valuation changes of derivatives that were used to manage risks associated with our Mortgage Banking platforms, Redwood Investments and Legacy Investments. Mortgage banking activities, net, 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 (Loss).