Short-Term Debt

3 Months Ended

Mar. 31, 2022

We enter into repurchase agreements ("repo"), loan warehouse agreements, and other forms of collateralized (and generally uncommitted) short-term borrowings with several banks and major investment banking firms. At March 31, 2022, we had outstanding agreements with several counterparties and we were in compliance with all of the related covenants.

The table below summarizes our short-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at March 31, 2022 and December 31, 2021.

Table 13.1 – Short-Term Debt


	March 31, 2022
(Dollars in Thousands)	Number of Facilities	Outstanding Balance		Limit		Weighted Average Interest Rate (1)		Maturity	Weighted Average Days Until Maturity
Facilities
Residential loan warehouse	7	$	1,223,247	$	2,750,000	2.13	%	8/2022-3/2023	288

Business purpose loan warehouse	1	95,161		350,000		3.45	%	3/2023	349
Real estate securities repo	4	75,445		—		1.25	%	4/2022-6/2022	33

Total Short-Term Debt Facilities	12	1,393,853
Servicer advance financing	1	253,393		350,000		2.25	%	11/2022	216

Total Short-Term Debt		$	1,647,246


	December 31, 2021
(Dollars in Thousands)	Number of Facilities	Outstanding Balance		Limit		Weighted Average Interest Rate (1)		Maturity	Weighted Average Days Until Maturity
Facilities
Residential loan warehouse	7	$	1,669,344	$	2,900,000	1.87	%	1/2022-12/2022	153

Business purpose loan warehouse	2	138,746		350,000		3.34	%	3/2022-7/2022	105
Real estate securities repo	4	74,825		—		1.13	%	1/2022-3/2022	33
Total Short-Term Debt Facilities	13	1,882,915
Servicer advance financing	1	294,447		350,000		1.90	%	11/2022	306

Total Short-Term Debt		$	2,177,362

(1)Borrowings under our facilities generally are uncommitted and charged interest based on a specified margin over 1-month SOFR or 1- or 3-month LIBOR.

The following table below presents the value of loans, securities, and other assets pledged as collateral under our short-term debt at March 31, 2022 and December 31, 2021.

Table 13.2 – Collateral for Short-Term Debt


(In Thousands)	March 31, 2022		December 31, 2021
Collateral Type
Held-for-sale residential loans	$	1,334,272	$	1,838,797
Business purpose loans	129,179		167,687
Real estate securities
On balance sheet	5,539		5,823
Sequoia securitizations (1)	59,862		61,525

Freddie Mac K-Series securitization (1)	31,921		31,657

Total real estate securities owned	97,322		99,005
Restricted cash and other assets	1,962		1,962
Total Collateral for Short-Term Debt Facilities	1,562,735		2,107,451
Cash	9,615		6,480
Restricted cash	24,170		25,420
Servicer advances	302,837		310,953
Total Collateral for Servicer Advance Financing	336,622		342,853
Total Collateral for Short-Term Debt	$	1,899,357	$	2,450,304

(1)Represents securities we have retained from consolidated securitization entities. For GAAP purposes, we consolidate the loans and non-recourse ABS debt issued from these securitizations.

For the three months ended March 31, 2022, the average balance of our short-term debt facilities was $1.73 billion. At March 31, 2022 and December 31, 2021, accrued interest payable on our short-term debt facilities was $2 million and $2 million, respectively.

Servicer advance financing consists of non-recourse short-term securitization debt used to finance servicer advance investments. We consolidate the securitization entity that issued the debt, but the entity is independent of Redwood and the assets and liabilities are not owned by and are not legal obligations of Redwood. At March 31, 2022, the accrued interest payable balance on this financing was $0.2 million and the unamortized capitalized commitment costs were $0.7 million.

We also maintain a $10 million committed line of credit with a financial institution that is secured by certain mortgage-backed securities with a fair market value of $1 million at March 31, 2022. At both March 31, 2022 and December 31, 2021, we had no outstanding borrowings on this facility.

Remaining Maturities of Short-Term Debt

The following table presents the remaining maturities of our secured short-term debt by the type of collateral securing the debt at March 31, 2022.

Table 13.3 – Short-Term Debt by Collateral Type and Remaining Maturities


	March 31, 2022
(In Thousands)	Within 30 days		31 to 90 days		Over 90 days		Total
Collateral Type
Held-for-sale residential loans	$	—	$	—	$	1,223,247	$	1,223,247
Business purpose loans	—		—		95,161		95,161
Real estate securities	43,675		31,770		—		75,445
Total Secured Short-Term Debt	43,675		31,770		1,318,408		1,393,853
Servicer advance financing	—		—		253,393		253,393

Total Short-Term Debt	$	43,675	$	31,770	$	1,571,801	$	1,647,246