Redwood Trust (RWT) 10-K 26 Feb 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Feb. 22, 2016	Jun. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Trading Symbol	RWT
Entity Registrant Name	REDWOOD TRUST INC
Entity Central Index Key	930,236
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		77,252,837
Entity Public Float			$ 1,303,251,238
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands		Dec. 31, 2015	Dec. 31, 2014
ASSETS
Residential loans		$ 3,928,803	$ 3,398,573
Commercial loans		402,647	566,927
Real estate securities, at fair value	[1]	1,233,256	1,379,230
Mortgage servicing rights, at fair value	[1]	191,976	139,293
Cash and cash equivalents	[1]	220,229	269,730
Total earning assets	[1]	5,976,911	5,753,753
Restricted cash	[1]	5,567	628
Accrued interest receivable	[1]	23,290	18,222
Derivative assets	[1]	16,393	16,417
Deferred securities issuance costs	[1]	10,980	16,050
Other assets	[1]	197,886	113,896
Total Assets	[1]	6,231,027	5,918,966
Liabilities
Short-term debt	[1]	1,855,003	1,793,825
Accrued interest payable	[1]	8,936	8,503
Derivative liabilities	[1]	62,794	58,331
Accrued expenses and other liabilities	[1]	69,897	52,244
Deferred tax liability	[1]	0	10,236
Asset-backed securities issued (includes $996,820 and $0 at fair value)	[1],[2]	1,049,957	1,545,119
Long-term debt (includes $63,152 and $66,707 at fair value)	[1]	2,038,175	1,194,567
Total liabilities	[1]	5,084,762	4,662,825
Equity
Common stock, par value $0.01 per share, 180,000,000 shares authorized; 78,162,765 and 83,443,141 issued and outstanding	[1]	782	834
Additional paid-in capital	[1]	1,695,956	1,774,030
Accumulated other comprehensive income	[1]	91,993	140,688
Cumulative earnings	[1]	1,018,683	906,867
Cumulative distributions to stockholders	[1]	(1,661,149)	(1,566,278)
Total equity	[1]	1,146,265	1,256,141
Total Liabilities and Equity	[1]	6,231,027	5,918,966
Residential Loans Held For Sale
ASSETS
Residential loans	[1]	1,115,738	1,342,519
Residential Loans Held For Investment
ASSETS
Residential loans	[1],[2]	2,813,065	2,056,054
Commercial Loans Held For Sale
ASSETS
Commercial loans	[1]	39,141	166,234
Commercial Loans Held For Investment
ASSETS
Commercial loans	[1]	$ 363,506	$ 400,693
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.
[2]	On January 1, 2015, we adopted ASU 2014-13 and began to account for residential loans held-for-investment and asset backed securities issued at consolidated Sequoia entities (which are VIEs) at fair value. At December 31, 2014, amounts presented in residential loans held-for-investment for these assets included $1,474,386 at historical cost. See Note 3 for further discussion.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Asset-backed securities, fair value	$ 996,820	$ 0
Long-term debt at fair value	$ 63,152	$ 66,707
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	180,000,000	180,000,000
Common stock, issued	78,162,765	83,443,141
Common stock, outstanding	78,162,765	83,443,141
Variable interest held by entity, assets	$ 1,195,574	$ 1,900,208
Variable interest held by entity, liabilities	1,050,861	1,546,490
Residential loans	3,928,803	3,398,573
Commercial Loans Held For Investment
Loans at fair value	$ 67,657	71,262
Residential Loans Held For Investment At Amortized Cost
Residential loans		1,474,386
Sequoia | Residential Loans Held For Investment At Amortized Cost
Residential loans		$ 1,474,386

Consolidated Statements Of Inco

Consolidated Statements Of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Interest Income
Residential loans	$ 114,715	$ 68,949	$ 67,016
Commercial loans	46,933	47,567	43,420
Real estate securities	97,448	125,482	115,563
Other interest income	336	72	157
Total interest income	259,432	242,070	226,156
Interest Expense
Short-term debt	(30,572)	(25,990)	(17,436)
Asset-backed securities issued	(21,469)	(31,227)	(39,716)
Long-term debt	(43,842)	(30,246)	(23,819)
Total interest expense	(95,883)	(87,463)	(80,971)
Net Interest Income	163,549	154,607	145,185
Reversal of (provision for) loan losses	355	(961)	(4,737)
Net Interest Income After Provision	163,904	153,646	140,448
Noninterest Income
Mortgage banking and investment activities, net	(10,385)	24,792	96,785
Mortgage servicing rights income (loss), net	(3,922)	(4,261)	20,309
Other income	3,192	1,781	0
Realized gains, net	36,369	15,478	25,259
Total non interest income, net	25,254	37,790	142,353
Operating expenses	(97,416)	(90,123)	(86,607)
Other expense	0	0	(12,000)
Net income before provision for income taxes	91,742	101,313	184,194
Benefit from (provision for) income taxes	10,346	(744)	(10,948)
Net income	$ 102,088	$ 100,569	$ 173,246
Basic earnings per common share (usd per share)	$ 1.20	$ 1.18	$ 2.05
Diluted earnings per common share (usd per share)	1.18	1.15	1.94
Regular dividends declared per common share (usd per share)	$ 1.12	$ 1.12	$ 1.12
Basic weighted average shares outstanding (in shares)	82,945,103	82,837,369	81,985,897
Diluted weighted average shares outstanding (in shares)	84,518,395	85,098,579	93,694,924

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 102,088	$ 100,569	$ 173,246
Other comprehensive income (loss):
Net unrealized (loss) gain on available-for-sale securities	(17,955)	32,635	(1,918)
Reclassification of unrealized gain on available-for-sale securities to net income	(29,426)	(10,552)	(20,008)
Net unrealized (loss) gain on interest rate agreements	(1,409)	(30,325)	32,079
Reclassification of unrealized loss on interest rate agreements to net income	95	164	281
Total other comprehensive income (loss)	(48,695)	(8,078)	10,434
Total Comprehensive Income	$ 53,393	$ 92,491	$ 183,680

Consolidated Statements Of Chan

Consolidated Statements Of Changes In Stockholders' Equity - USD ($) $ in Thousands	Total		Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Cumulative Earnings	Cumulative Distributions to Stockholders
Beginning balance (in shares) at Dec. 31, 2012			81,716,416
Beginning balance at Dec. 31, 2012	$ 1,140,164		$ 817	$ 1,744,554	$ 138,332	$ 633,052	$ (1,376,591)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	173,246					173,246
Other comprehensive income (loss)	10,434				10,434
Dividend reinvestment & stock purchase plans (in shares)			431,679
Dividend reinvestment & stock purchase plans	8,148		$ 4	8,144
Employee stock purchase and incentive plans (in shares)			356,706
Employee stock purchase and incentive plans	(5,342)		$ 4	(5,346)
Non-cash equity award compensation	$ 13,547			13,547
Share repurchases (in shares)	0
Common dividends declared	$ (94,414)						(94,414)
Ending balance (in shares) at Dec. 31, 2013			82,504,801
Ending balance at Dec. 31, 2013	1,245,783		$ 825	1,760,899	148,766	806,298	(1,471,005)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	100,569					100,569
Other comprehensive income (loss)	(8,078)				(8,078)
Dividend reinvestment & stock purchase plans (in shares)			488,174
Dividend reinvestment & stock purchase plans	9,017		$ 5	9,012
Employee stock purchase and incentive plans (in shares)			450,166
Employee stock purchase and incentive plans	(7,148)		$ 4	(7,152)
Non-cash equity award compensation	$ 11,271			11,271
Share repurchases (in shares)	0
Common dividends declared	$ (95,273)						(95,273)
Ending balance (in shares) (Previously Reported) at Dec. 31, 2014			83,443,141
Ending balance (in shares) at Dec. 31, 2014			83,443,141
Ending balance (Previously Reported) at Dec. 31, 2014	1,256,141		$ 834	1,774,030	140,688	906,867	(1,566,278)
Ending balance at Dec. 31, 2014	1,256,141	[1]	834	1,774,030	140,688	906,867	(1,566,278)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjusted balance	1,265,869		$ 834	1,774,030	140,688	916,595	(1,566,278)
Cumulative effect adjustment - adoption of ASU 2014-13 | Accounting Standards Update 2014-13	9,728					9,728
Net income	102,088					102,088
Other comprehensive income (loss)	(48,695)				(48,695)
Dividend reinvestment & stock purchase plans (in shares)			418,508
Dividend reinvestment & stock purchase plans	6,834		$ 4	6,830
Employee stock purchase and incentive plans (in shares)			753,429
Employee stock purchase and incentive plans	(7,981)		$ 7	(7,988)
Non-cash equity award compensation	$ 11,806			11,806
Share repurchases (in shares)	(6,452,313)		(6,452,313)
Share repurchases	$ (88,785)		$ (63)	(88,722)
Common dividends declared	(94,871)						(94,871)
Ending balance (in shares) at Dec. 31, 2015			78,162,765
Ending balance at Dec. 31, 2015	$ 1,146,265	[1]	$ 782	$ 1,695,956	$ 91,993	$ 1,018,683	$ (1,661,149)
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Consolidated Statements Of Cash

Consolidated Statements Of Cash Flows $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)		Dec. 31, 2014USD ($)		Dec. 31, 2013USD ($)
Cash Flows From Operating Activities:
Net income	$ 102,088		$ 100,569		$ 173,246
Adjustments to reconcile net income to net cash used in operating activities:
Amortization of premiums, discounts, and securities issuance costs, net	(34,089)		(34,133)		(26,165)
Depreciation and amortization of non-financial assets	824		513		388
Purchases of held-for-sale loans	(11,045,813)		(9,917,943)		(7,766,203)
Proceeds from sales of held-for-sale loans	9,761,010		8,126,249		7,405,088
Principal payments on held-for-sale loans	80,299		30,233		19,030
Net settlements of derivatives	(59,406)		(33,220)		45,447
(Reversal of) provision for loan losses	(355)		961		4,737
Non-cash equity award compensation expense	11,806		11,271		13,547
Market valuation adjustments	51,975		298		(97,701)
Realized gains, net	(36,369)		(15,478)		(36,290)
Net change in:
Accrued interest receivable and other assets	(88,173)		(57,685)		12,002
Accrued interest payable, deferred tax liabilities, and accrued expenses and other liabilities	5,993		(2,768)		31,046
Net cash used in operating activities	(1,250,210)		(1,791,133)		(221,828)
Cash Flows From Investing Activities:
Purchases of loans held-for-investment	(22,219)		(87,454)		(65,771)
Proceeds from sales of loans held-for-investment	6,459		0		440
Principal payments on loans held-for-investment	500,239		364,040		523,900
Purchases of real estate securities	(179,265)		(168,654)		(488,598)
Proceeds from sales of real estate securities	439,493		504,754		220,535
Principal payments on real estate securities	138,630		174,241		163,951
Purchase of mortgage servicing rights	(32,388)		(46,113)		(3,106)
Proceeds from sales of mortgage servicing rights	17,235		0		0
Net change in restricted cash	(4,939)		(230)		(15)
Net cash provided by investing activities	863,245		740,584		351,336
Cash Flows From Financing Activities:
Proceeds from borrowings on short-term debt	8,570,291		8,320,982		6,661,464
Repayments on short-term debt	(8,534,802)		(7,442,836)		(6,350,619)
Proceeds from issuance of asset-backed securities	0		0		0
Repayments on asset-backed securities issued	(388,962)		(396,734)		(584,400)
Deferred securities issuance costs	(33)		(6,934)		(9,184)
Proceeds from issuance of long-term debt	1,400,222		770,042		336,994
Repayments on long-term debt	(527,371)		(685)		(27)
Net settlements of derivatives	(43)		(3,352)		(7)
Net proceeds from issuance of common stock	7,301		9,511		8,667
Net payments on repurchase of common stock	(85,820)		0		0
Taxes paid on equity award distributions	(8,448)		(7,643)		(5,861)
Dividends paid	(94,871)		(95,273)		(94,414)
Net cash provided by (used in) financing activities	337,464		1,147,078		(37,387)
Net (decrease) increase in cash and cash equivalents	(49,501)		96,529		92,121
Cash and cash equivalents at beginning of period	269,730	[1]	173,201		81,080
Cash and cash equivalents at end of period	220,229	[1]	269,730	[1]	173,201
Cash paid during the period for:
Interest	86,849		81,350		85,418
Taxes	165		1,407		3,397
Supplemental Noncash Information:
Real estate securities retained from loan securitizations	244,177		150,387		392,932
Retention of mortgage servicing rights from loan securitizations and sales	64,725		48,000		44,063
Transfers from loans held-for-sale to loans held-for-investment	1,555,814		633,707		0
Transfers from loans held-for-investment to loans held-for-sale	154,012		0		0
Transfers from residential loans to real estate owned	$ 8,500		$ 6,844		$ 4,711
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Organization

Organization	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Organization	Organization Redwood Trust, Inc., together with its subsidiaries, focuses on investing in mortgage- and other real estate-related assets and engaging in mortgage banking activities. We seek to invest in real estate-related assets that have the potential to generate attractive cash flow returns over time and to generate income through our mortgage banking activities. During 2015, we operated our business in three segments: residential mortgage banking, residential investments, and commercial mortgage banking and investments. Our primary sources of income are net interest income from our investment portfolios and non-interest income from our mortgage banking activities. Net interest income consists of the interest income we earn on investments less the interest expense we incur on borrowed funds and other liabilities. Income from mortgage banking activities consists of the profit we seek to generate through the acquisition of loans and their subsequent sale or securitization. Redwood Trust, Inc. has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), beginning with its taxable year ended December 31, 1994. We generally refer, collectively, to Redwood Trust, Inc. and those of its subsidiaries that are not subject to subsidiary-level corporate income tax as “the REIT” or “our REIT.” We generally refer to subsidiaries of Redwood Trust, Inc. that are subject to subsidiary-level corporate income tax as “our operating subsidiaries” or “our taxable REIT subsidiaries” or “TRS.” Redwood was incorporated in the State of Maryland on April 11, 1994, and commenced operations on August 19, 1994. References herein to “Redwood,” the “company,” “we,” “us,” and “our” include Redwood Trust, Inc. and its consolidated subsidiaries, unless the context otherwise requires. Refer to Item 1 - Business in this Annual Report on Form 10-K for additional information on our business.

Basis of Presentation

Basis of Presentation	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements presented herein are at December 31, 2015 and December 31, 2014 , and for the years ended December 31, 2015 , 2014 , and 2013 . These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") — as prescribed by the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) — and the rules and regulations of the Securities and Exchange Commission ("SEC"). In the opinion of management, all normal and recurring adjustments to present fairly the financial condition of the company at December 31, 2015 and results of operations for all periods presented have been made. In the second quarter of 2015, we began to specifically identify derivatives that are used to hedge our exposure to market interest rate risk associated with our MSR investments. As a result, beginning in the second quarter of 2015, we changed our income statement presentation to include the change in market value of these derivatives in the line item “Mortgage servicing rights income (loss), net.” As we previously managed our market interest rate risk on a portfolio-wide basis and did not necessarily rely on derivatives to hedge our MSRs, we cannot conform prior periods to the current presentation. Therefore, in periods prior to the second quarter of 2015 presented in our consolidated statements of income, amounts in “Mortgage servicing rights income (loss), net” do not reflect the impact of hedging. These changes and year-over-year comparisons are discussed in further detail in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Annual Report on Form 10-K. Additionally, beginning in the second quarter of 2015, we combined our “Mortgage banking activities” and “Other market valuation adjustments” line items on our consolidated statements of income into a single line, now called “Mortgage banking and investment activities, net.” During 2015, we managed our market interest rate risk on the remainder of our assets (excluding MSRs) on a net basis, and we believe that combining these two line items better reflects the net effect of our hedging activities on the assets associated with derivatives that are marked-to-market each quarter. We have conformed the presentation of prior periods related to this change for consistency of comparison. Principles of Consolidation In accordance with GAAP, we determine whether we must consolidate transferred financial assets and variable interest entities (“VIEs”) for financial reporting purposes. We currently consolidate the assets and liabilities of certain Sequoia securitization entities where we maintain an ongoing involvement, as well as an entity formed in connection with a commercial securitization we engaged in during 2012 (“Commercial Securitization”). We also consolidated the assets and liabilities of an entity formed in connection with a resecuritization transaction we engaged in (“Residential Resecuritization”) from its creation in 2011 through the fourth quarter of 2015, when the debt of the entity was repaid, the assets of the entity were distributed to us, and the entity was dissolved. Each securitization entity is independent of Redwood and of each other and the assets and liabilities are not owned by and are not legal obligations of Redwood Trust, Inc. Our exposure to these entities is primarily through the financial interests we have retained, although we are exposed to certain financial risks associated with our role as a sponsor or depositor of these entities or as a result of our having sold assets directly or indirectly to these entities. For financial reporting purposes, the underlying loans and securities owned at the consolidated Sequoia entities, the Residential Resecuritization entity, and the Commercial Securitization entity are shown under residential and commercial loans and real estate securities on our consolidated balance sheets. The asset-backed securities (“ABS”) issued to third parties by these entities are shown under ABS issued. In our consolidated statements of income, we record interest income on the loans and securities owned at these entities and interest expense on the ABS issued by these entities as well as other income and expenses associated with these entities' activities. See Note 4 for further discussion on principles of consolidation. Use of Estimates The preparation of financial statements requires us to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amounts and timing of credit losses, prepayment rates, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the consolidated financial statements and the reported amounts of certain revenues and expenses during the reported periods. It is likely that changes in these estimates (e.g., valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term. Our estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material.

Principles of Consolidation

Principles of Consolidation	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of Consolidation GAAP requires us to consider whether securitizations we sponsor and other transfers of financial assets should be treated as sales or financings, as well as whether any VIEs that we hold variable interests in – for example, certain legal entities often used in securitization and other structured finance transactions – should be included in our consolidated financial statements. The GAAP principles we apply require us to reassess our requirement to consolidate VIEs each quarter and therefore our determination may change based upon new facts and circumstances pertaining to each VIE. This could result in a material impact to our consolidated financial statements during subsequent reporting periods. Analysis of Consolidated VIEs As of December 31, 2015 , the VIEs we are required to consolidate include certain Sequoia securitization entities and the Commercial Securitization entity. In addition, we consolidated the Residential Resecuritization from its creation in 2011 through the fourth quarter of 2015, when the VIE was dissolved. Each of these entities is independent of Redwood and of each other and the assets and liabilities of these entities are not owned by and are not legal obligations of ours. Our exposure to these entities is primarily through the financial interests we have retained, although we are exposed to certain financial risks associated with our role as a sponsor, manager, or depositor of these entities or as a result of our having sold assets directly or indirectly to these entities. The following table presents a summary of the assets and liabilities of these VIEs. Intercompany balances have been eliminated for purposes of this presentation. Table 4.1 – Assets and Liabilities of Consolidated VIEs December 31, 2015 Sequoia Entities Residential Resecuritization Commercial Securitization Total (Dollars in Thousands) Residential loans, held-for-investment $ 1,021,870 $ — $ — $ 1,021,870 Commercial loans, held-for-investment — — 166,016 166,016 Real estate securities — — — — Restricted cash 228 — 137 365 Accrued interest receivable 1,131 — 1,297 2,428 Other assets 4,895 — — 4,895 Total Assets $ 1,028,124 $ — $ 167,450 $ 1,195,574 Accrued interest payable $ 555 $ — $ 249 $ 804 Accrued expenses and other liabilities 100 — — 100 Asset-backed securities issued 996,820 — 53,137 1,049,957 Total Liabilities $ 997,475 $ — $ 53,386 $ 1,050,861 Number of VIEs 21 — 1 22 December 31, 2014 Sequoia Residential Commercial Total (Dollars in Thousands) Residential loans, held-for-investment $ 1,474,386 $ — $ — $ 1,474,386 Commercial loans, held-for-investment — — 194,991 194,991 Real estate securities, at fair value — 221,676 — 221,676 Restricted cash 147 43 137 327 Accrued interest receivable 2,359 477 1,511 4,347 Other assets 4,411 — 70 4,481 Total Assets $ 1,481,303 $ 222,196 $ 196,709 $ 1,900,208 Accrued interest payable $ 976 $ 5 $ 390 $ 1,371 Asset-backed securities issued 1,416,762 45,044 83,313 1,545,119 Total Liabilities $ 1,417,738 $ 45,049 $ 83,703 $ 1,546,490 Number of VIEs 24 1 1 26 We consolidate the assets and liabilities of certain Sequoia securitization entities, as we did not meet the GAAP sale criteria at the time we transferred financial assets to these entities. Our involvement in consolidated Sequoia entities continues in the following ways: (i) we continue to hold subordinate investments in each entity, and for certain entities, more senior investments; (ii) we maintain certain discretionary rights associated with our sponsorship of, or our subordinate investments in, each entity; and (iii) we continue to hold a right to call the assets of certain entities (once they have been paid down below a specified threshold) at a price equal to, or in excess of, the current outstanding principal amount of the entity’s asset-backed securities issued. These factors have resulted in our continuing to consolidate the assets and liabilities of these Sequoia entities in accordance with GAAP. We consolidate the assets and liabilities of the Commercial Securitization entity, as we did not meet the GAAP sale criteria at the time the financial assets were transferred to this entity based on our role in the entity’s inception and design. We transferred subordinate commercial loans to RCMC 2012-CREL1, the Commercial Securitization entity. In connection with this transaction, we acquired certain subordinate securities that we continue to hold. We engaged in the Commercial Securitization primarily for the purpose of obtaining permanent non-recourse financing on a portion of our commercial mezzanine loan portfolio. Our credit risk exposure is largely unchanged as a result of engaging in the transaction, as we remain economically exposed to the financed loans through our subordinate investment in the Commercial Securitization. Analysis of Unconsolidated VIEs with Continuing Involvement During the years ended December 31, 2015 , 2014 , and 2013 , we transferred residential loans to four , four , and 12 Sequoia securitization entities sponsored by us, respectively, and accounted for these transfers as sales for financial reporting purposes, in accordance with ASC 860. We also determined we were not the primary beneficiary of these VIEs as we lacked the power to direct the activities that will have the most significant economic impact on the entities. For the transferred loans where we held the servicing rights prior to the transfer and continue to hold the servicing rights, we recorded MSRs on our consolidated balance sheets, and classified those MSRs as Level 3 assets. We also retained senior and subordinate securities in these securitizations that we classified as Level 3 assets. Our continuing involvement in these securitizations is limited to customary servicing obligations associated with retaining residential MSRs (which we retain a third-party sub-servicer to perform) and the receipt of interest income associated with the securities we retained. The following table presents information related to securitization transactions that occurred during the year s ended December 31, 2015 and 2014 . Table 4.2 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Years Ended December 31, (In Thousands) 2015 2014 Principal balance of loans transferred $ 1,375,532 $ 1,324,419 Trading securities retained, at fair value 252,222 77,160 AFS securities retained, at fair value 7,852 78,218 MSRs recognized 8,202 8,518 The following table summarizes the cash flows during the years ended December 31, 2015 and 2014 between us and the unconsolidated VIEs sponsored by us. Table 4.3 – Cash Flows Related to Unconsolidated VIEs Sponsored by Redwood Years Ended December 31, (In Thousands) 2015 2014 Proceeds from new transfers $ 1,139,052 $ 1,201,411 MSR fees received 14,874 13,812 Funding of compensating interest (363 ) (227 ) Cash flows received on retained securities 43,460 56,870 The following table presents the key weighted average assumptions used to measure MSRs and securities retained at the date of securitization. Table 4.4 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Year Ended December 31, 2015 Year Ended December 31, 2014 At Date of Securitization MSRs Senior Securities Subordinate Securities MSRs Senior Securities Subordinate Securities Prepayment rate 5 % - 15 % 8 % - 10 % 8 % - 10 % 5 % - 16 % 8 % - 10 % 8 % - 10 % Discount rates 11 % 3 % 6 % 11 % 3 % 5 % Credit loss assumptions N/A 0.10 % - 0.25 % 0.10 % - 0.25 % N/A 0.25 % 0.25 % The following table presents additional information at December 31, 2015 and December 31, 2014 , related to unconsolidated securitizations accounted for as sales since 2012. Table 4.5 – Unconsolidated VIEs Sponsored by Redwood (In Thousands) December 31, 2015 December 31, 2014 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 258,697 $ 93,802 Senior and subordinate securities, classified as AFS 272,715 460,990 Mortgage servicing rights 56,984 56,801 Maximum loss exposure (1) $ 588,396 $ 611,593 Assets transferred: Principal balance of loans outstanding $ 7,318,167 $ 7,276,825 Principal balance of delinquent loans 30+ days delinquent 18,300 17,022 (1) Maximum loss exposure from our involvement with unconsolidated VIEs pertains to the carrying value of our securities and MSRs retained from these VIEs and represents estimated losses that would be incurred under severe, hypothetical circumstances, such as if the value of our interests and any associated collateral declines to zero. This does not include, for example, any potential exposure to representation and warranty claims associated with our initial transfer of loans into a securitization. The following table presents key economic assumptions for assets retained from unconsolidated VIEs and the sensitivity of their fair values to immediate adverse changes in those assumptions at December 31, 2015 and December 31, 2014 . Table 4.6 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood December 31, 2015 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair Value at December 31, 2015 $ 56,984 $ 248,570 $ 282,842 Expected life (in years) (2) 7 5 12 Prepayment speed assumption (annual CPR) (2) 11 % 10 % 12 % Decrease in fair value from: 10% adverse change $ 2,868 $ 2,042 $ 901 25% adverse change 6,119 4,810 2,278 Discount rate assumption (2) 11 % 5 % 6 % Decrease in fair value from: 100 basis point increase $ 2,711 $ 10,029 $ 21,981 200 basis point increase 4,745 19,365 41,156 Credit loss assumption (2) N/A 0.25 % 0.25 % Decrease in fair value from: 10% higher losses N/A $ 35 $ 1,244 25% higher losses N/A 86 3,129 December 31, 2014 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair Value at December 31, 2014 $ 56,801 $ 93,802 $ 460,990 Expected life (in years) (2) 7 6 10 Prepayment speed assumption (annual CPR) (2) 14 % 9 % 10 % Decrease in fair value from: 10% adverse change $ 2,419 $ 3,999 $ 684 25% adverse change 5,639 9,475 2,355 Discount rate assumption (2) 11 % 8 % 5 % Decrease in fair value from: 100 basis point increase $ 2,104 $ 4,214 $ 34,149 200 basis point increase 4,102 8,091 64,474 Credit loss assumption (2) N/A 0.25 % 0.25 % Decrease in fair value from: 10% higher losses N/A $ 126 $ 3,169 25% higher losses N/A 299 7,841 (1) Senior securities include $31 million and $88 million of interest only securities at December 31, 2015 and December 31, 2014 , respectively. (2) Expected life, prepayment speed assumption, discount rate assumption, and credit loss assumption presented in the tables above represent weighted averages. Analysis of Third-Party VIEs Third-party VIEs are securitization entities in which we maintain an economic interest, but do not sponsor. Our economic interest may include several securities from the same third-party VIE, and in those cases, the analysis is performed in consideration of all of our interests. The following table presents a summary of our interests in third-party VIEs at December 31, 2015 , grouped by security type. Table 4.7 – Third-Party Sponsored VIE Summary (Dollars in Thousands) December 31, 2015 Residential Mortgage Backed Securities Senior $ 285,033 Re-REMIC 165,064 Subordinate 251,748 Total Investments in Third-Party Sponsored VIEs $ 701,845 We determined that we are not the primary beneficiary of any third-party VIEs, as we do not have the required power to direct the activities that most significantly impact the economic performance of these entities. Specifically, we do not service or manage these entities or otherwise solely hold decision making powers that are significant. As a result of this assessment, we do not consolidate any of the underlying assets and liabilities of these third-party VIEs – we only account for our specific interests in them. Our assessments of whether we are required to consolidate a VIE may change in subsequent reporting periods based upon changing facts and circumstances pertaining to each VIE. Any related accounting changes could result in a material impact to our consolidated financial statements. Other Transfers of Financial Assets During 2014, certain of our senior commercial mortgage loans were bifurcated into a senior portion that was sold to a third party and a junior portion that we retained as an investment. The transfer of the senior portions of these loans did not meet the criteria for sale treatment under GAAP and the entire amount of the loans (the senior and junior portions), consisting $63 million , remained on our consolidated balance sheet classified as a held-for-investment loans and we accounted for the receipt of $65 million of cash from the transfer of the senior portions as secured borrowings. Both of these amounts are carried at fair value with the fair value of the secured borrowings equal to the fair value of the senior portions of the loans that were sold.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Significant Accounting Policies Fair Value Measurements Our financial statements include assets and liabilities that are measured at their estimated fair values in accordance with GAAP. A fair value measurement represents the price at which an orderly transaction would occur between willing market participants at the measurement date. We develop fair values for financial assets or liabilities based on available inputs and pricing that is observed in the marketplace. Examples of market information that we attempt to obtain include the following: • Quoted prices for the same or similar securities; • Relevant reports issued by analysts and rating agencies; • The current level of interest rates and any directional movements in relevant indices, such as credit risk indices; • Information about the performance of mortgage loans, such as delinquency and foreclosure rates, loss experience, and prepayment rates; • Indicative prices or yields from broker/dealers (including prices from counterparties under securities repurchase agreements); and • Other relevant observable inputs, including nonperformance risk and liquidity premiums. After considering all available indications of the appropriate rate of return that market participants would require, we consider the reasonableness of the range indicated by the results to determine an estimate that is most representative of fair value. The markets for many of the loans and securities that we invest in and issue are generally illiquid. Establishing fair values for illiquid assets and liabilities is inherently subjective and is often dependent upon our estimates and modeling assumptions. If we determine that either the volume and/or level of trading activity for an asset or liability has significantly decreased from normal market conditions, or price quotations or observable inputs are not associated with orderly transactions, the market inputs that we obtain might not be relevant. For example, broker or pricing service quotes might not be relevant if an active market does not exist for the financial asset or liability. The nature of the quote (for example, whether the quote is an indicative price or a binding offer) is also evaluated. In circumstances where relevant market inputs cannot be obtained, increased analysis and management judgment are required to estimate fair value. This generally requires us to establish internal assumptions about future cash flows and appropriate risk-adjusted discount rates. Regardless of the valuation inputs we apply, the objective of fair value measurement is unchanged from what it would be if markets were operating at normal activity levels and/or transactions were orderly; that is, to determine the current exit price. See Note 5 for further discussion on fair value measurements. Fair Value Option We have the option to measure eligible financial assets, financial liabilities, and commitments at fair value on an instrument-by-instrument basis. This option is available when we first recognize a financial asset or financial liability or enter into a firm commitment. Subsequent changes in the fair value of assets, liabilities, and commitments where we have elected the fair value option are recorded in our consolidated statements of income. We elect the fair value option for certain residential and commercial loans, MSRs, Sequoia interest only (“IO”) securities, and certain mezzanine classified subordinate securities. We generally elect the fair value option for residential and commercial loans that are held-for-sale, due to our intent to sell or securitize the loans in the near-term. We elect the fair value option for our MSRs, Sequoia IO securities, and certain subordinate securities, for which we generally hedge market interest rate risk. As such, we seek to offset interest rate related changes in the values of these investments with changes in the values of their associated hedges through our consolidated statements of income. In addition, upon the adoption of ASU 2014-13 in 2015, we elected the fair value option for the assets and liabilities of our consolidated Sequoia entities. See Note 5 for further discussion on the fair value option. Real Estate Loans Residential and Commercial Loans - Held-for-Sale at Fair Value Residential and commercial loans held-for-sale include loans that we are marketing for sale to third parties, including transfers to securitization entities that we plan to sponsor and expect to be accounted for as sales for financial reporting purposes. We generally elect the fair value option for residential and commercial loans that we purchase with the intent to sell to third parties or transfer to Sequoia securitizations. Coupon interest is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due. Changes in fair value are recurring and are reported through our consolidated statements of income in mortgage banking and investing activities. We reclassify loans held-for-sale as loans held-for investment if we determine we will hold the loans for long-term investment. During 2014 and 2015, loans initially classified as held-for-sale were reclassified to held-for-investment when they were transferred to our FHLB-member subsidiary and financed with borrowings from the FHLBC. Residential and Commercial Loans - Held-for-Investment Residential Loans - At Fair Value Certain loans that were originally purchased with the intent to sell as part of our residential mortgage banking operations, and for which we elected the fair value option at acquisition, were subsequently reclassified to held-for-investment ("HFI") when the loans were transferred to our FHLBC member subsidiary and pledged as collateral for borrowings made from the Federal Home Loan Bank of Chicago (“FHLBC”). As of December 31, 2015 , our current intention is to hold these loans for longer-term investment while they are financed by the FHLBC. Coupon interest is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due. Changes in fair value are recurring and are reported through our consolidated statements of income in mortgage banking and investing activities. Commercial Loans - At Fair Value We may elect the fair value option for senior commercial mortgage loans that we originate or acquire that are bifurcated into a senior portion that is sold to a third party and a junior portion that we retain as an investment. When the transfer of the senior portion does not meet the criteria for sale treatment under GAAP, the entire loan (the senior and junior portions) remains on our consolidated balance sheet, and we account for the transfer of the senior portion as a secured borrowing. Coupon interest is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due. Changes in fair value are recurring and are reported through our consolidated statements of income in mortgage banking and investing activities. Residential and Commercial Loans - At Amortized Cost Loans held-for-investment at amortized cost include certain commercial loans, including those owned at the Commercial Securitization entity, and prior to January 1, 2015, included residential loans owned at consolidated Sequoia entities. Coupon interest is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due or has been individually impaired, at which point the loan is placed on nonaccrual status. Interest previously accrued for loans that have become greater than 90 days past due or individually impaired is reserved for in the allowance for loan losses. Residential loans delinquent more than 90 days or in foreclosure are characterized as a serious delinquency. Cash principal and interest that is advanced from servicers subsequent to a loan becoming greater than 90 days past due or individually impaired is accounted for as a reduction in the outstanding loan principal balance. When a seriously delinquent loan previously placed on nonaccrual status has cured, meaning all delinquent principal and interest have been remitted by the borrower, the loan is placed back on accrual status. Alternately, loans that have been individually impaired may be placed back on accrual status if restructured and after the loan is considered reperforming. A restructured loan is considered reperforming when the loan has been current for at least 12 months. We reclassify loans held-for-investment as loans held-for-sale if we determine that these loans will be sold or transferred to third parties. This may occur, for example, if we exercise our right to call ABS issued by a Sequoia securitization trust and decide to subsequently sell the underlying loans to third parties. See Note 6 for further discussion on residential loans. See Note 7 for further discussion on commercial loans. Residential Loans - Allowance for Loan Losses, Loan Modifications, and Foreclosed Loans Upon the adoption of ASU 2014-13 on January 1, 2015, we reclassified all residential loans held-for-investment at amortized cost to fair value. As such, we no longer maintain an allowance for loan losses for residential loans. As part of the loss mitigation efforts undertaken by servicers of residential loans owned at Sequoia securitization entities, certain delinquent loans have been modified and additional loans may be modified in the future. Loan modifications may include, but are not limited to: (i) conversion of a floating rate mortgage loan into a fixed rate mortgage loan; (ii) reduction in the contractual interest rate of a mortgage loan; (iii) forgiveness of a portion of the contractual interest and/or principal amounts owed on a mortgage loan; and, (iv) extension of the contractual maturity of a mortgage loan. We evaluate all loan modifications performed by servicers to determine if they constitute troubled debt restructurings (“TDRs”) according to GAAP. If a loan is determined to be a TDR, it is removed from the general loan pools used for calculating allowances for loan losses and assessed for impairment on an individual basis based upon any adverse change in the expected future cash flows resulting from the modification. This difference is recorded to mortgage banking and investment activities, net on our consolidated statements of income. When foreclosed property is received in full satisfaction for a defaulted loan, we estimate the fair value of the property, based on estimated net proceeds from the sale of the property (including servicer advances and other costs). To the extent that the fair value of the property is below the recorded investment of the loan, a charge is recorded to mortgage banking and investment activities, net, on our consolidated statements of income, for the difference. Foreclosed property is subsequently recorded as real estate owned (“REO”), a component of other assets on our consolidated balance sheets. Actual losses incurred on loans liquidated through a short-sale are also charged against the allowance for loan losses. See Note 6 for further discussion on the allowance for loan losses for residential loans. Commercial Loans - Allowance for Loan Losses For commercial loans classified as held-for-investment at amortized cost, we establish and maintain a general allowance for loan losses inherent in our portfolio at the reporting date and, where appropriate, a specific allowance for loan losses for loans we have determined to be impaired at the reporting date. An individual loan is considered impaired when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan. Our methodology for assessing the adequacy of the allowance for loan losses begins with a formal review of each commercial loan in the portfolio and the assignment of an internal impairment status. Reviews are performed at least quarterly. We consider the following factors in evaluating each loan: • Loan to value ratios upon origination or acquisition of the loan; • The most recent financial information available for each loan and associated properties, including net operating income, debt service coverage ratios, occupancy rates, rent rolls, as well as any other loss factors we consider relevant, such as, but not limited to, specific loan trigger events that would indicate an adverse change in expected cash flows or payment delinquency; • Economic trends, both macroeconomic as well as those directly affecting the properties associated with our loans, and the supply and demand of competing projects in the sub-market in which the subject property is located; and • The loan sponsor or borrowing entity’s ability to ensure that properties associated with the loan are managed and operated sufficiently. Loan reviews are completed by asset management and finance personnel and reviewed and approved by senior management. Based on the assigned internal impairment status, a loan is categorized as “Pass,” “Watch List,” or “Workout.” Pass loans are defined as loans that are performing in accordance with the contractual terms of the loan agreement. Watch List loans are defined as performing loans for which the timing of cost recovery is under review. Workout loans are defined as loans that we believe have a credit impairment that may lead to a realized loss. Workout loans are typically assessed for impairment on an individual basis. Where an individual commercial loan is impaired, we record an allowance to reduce the carrying value of the loan to the current present value of expected future cash flows discounted at the loan’s effective rate or if a loan is collateral dependent, we reduce the carrying value to the estimated fair market value of the loan with a corresponding charge to provision for loan losses on our consolidated statements of income. For all commercial loans that are not individually impaired, we assess the commercial loan portfolio in aggregate for loan losses based on our expectation of credit losses inherent in the portfolio at the reporting date. Our expectation of credit losses is informed by, among other things: • Historical loss rates and past performance of similar loans in our own portfolio, if any; • Publicly available third-party reference loss rates on similar loans; and • Trends in delinquencies and charge-offs in our own portfolio and among industry participants. See Note 7 for further discussion on the allowance for loan losses for commercial loans. Repurchase Reserves We sell residential mortgage loans to various parties, including (1) securitization trusts, (2) Fannie Mae and Freddie Mac (“the Agencies”), and (3) banks and other financial institutions that purchase mortgage loans for investment or private label securitization. We may be required to repurchase residential mortgage loans we have sold, or loans associated with MSRs we have purchased, in the event of a breach of specified contractual representations and warranties made in connection with these sales and purchases. With respect to MSRs we purchase, if the associated residential loan has been sold to one of the Agencies (which is typically the case), that Agency can require us, as the owner of the MSR, to repurchase the residential loan in the event of such a breach of representations and warranties even though we were not the party that sold the associated loan to that Agency. In January 2016, we discontinued the acquisition and aggregation of conforming loans for resale to the Agencies. We do not originate residential mortgage loans and believe the initial risk of loss due to loan repurchases (i.e., due to a breach of representations and warranties) would generally be a contingency to the companies from whom we acquired the loans or MSRs. However, in some cases, such as where loans or MSRs were acquired from companies that have since become insolvent, we may have to bear the loss associated with a loan repurchase. Furthermore, even if we do not have to ultimately bear such a loss because we can recover from the company that sold us the loan or the MSR, there could be a delay in making that recovery. We establish reserves for mortgage repurchase liabilities related to various representations and warranties that reflect management’s estimate of losses for loans for which we could have a repurchase obligation, based on a combination of factors. Such factors can include estimated future defaults and loan repurchase rates, the potential severity of loss in the event of defaults, and the probability of our being liable for a repurchase obligation. We establish a reserve at the time loans are sold and MSRs are purchased and continually update our reserve estimate during its life. The reserve for mortgage loan repurchase losses is included in other liabilities on our consolidated balance sheets and the related expense is included as a component of mortgage banking and investment activities, net and MSR income (loss), net on our consolidated statements of income. See Note 15 for further discussion on the residential repurchase reserves. Real Estate Securities, at Fair Value We classify our real estate securities as trading or available-for-sale securities. We use the “prime” or “non-prime” designation to categorize our residential securities based upon the general credit characteristics of the residential loans underlying each security at the time of origination. For example, prime residential loans are generally characterized by lower loan-to-value (“LTV”) ratios at the time the loans were originated, and are made to borrowers with higher Fair Isaac Corporation (“FICO”) scores. Non-prime residential loans are generally characterized by higher LTV ratios at the time the loans were originated and may have been made to borrowers with lower credit scores or impaired credit histories (while exhibiting the ability to repay their loans) at the time the loan was originated. Regardless of whether or not the loans underlying a residential security were designated as prime or non-prime at origination, there is a risk that the borrower may not be able to repay the loan. Trading Securities We primarily denote trading securities as those securities where we have adopted the fair value option. Trading securities are carried at their estimated fair values. Coupon interest is recognized as interest income when earned and deemed collectible. Changes in the fair value of securities designated as trading securities are reported in mortgage banking and investment activities, net on our consolidated statements of income. Available-for-Sale Securities AFS securities primarily consist of non-agency residential mortgage backed securities (“RMBS”) and may include other residential and commercial securities. Non-Agency RMBS are not issued or guaranteed by a federally chartered corporation, such as Fannie Mae or Freddie Mac, or any agency of the U.S. Government. AFS securities are carried at their estimated fair value with unrealized gains and losses excluded from earnings (except when an other-than-temporary impairment (“OTTI”) is recognized, as discussed below) and reported in accumulated other comprehensive income (“AOCI”), a component of stockholders’ equity. Interest income on AFS securities is accrued based on their outstanding principal balance and contractual terms and interest income is recognized based on the security’s effective interest rate. In order to calculate the effective interest rate, we must project cash flows over the remaining life of each security and make assumptions with regards to interest rates, prepayment rates, the timing and amount of credit losses, and other factors. On at least a quarterly basis, we review and, if appropriate, make adjustments to our cash flow projections based on input and analysis received from external sources, internal models, and our own judgments about interest rates, prepayment rates, the timing and amount of credit losses, and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in the yield and interest income recognized on these securities or in the recognition of OTTI as discussed below. For AFS securities purchased and held at a discount, a portion of the discount may be designated as non-accretable purchase discount (“credit reserve”), based on the cash flows we have projected for the security. The amount designated as credit reserve may be adjusted over time, based on our periodic evaluation of projected cash flows. If the performance of a security with a credit reserve is more favorable than previously forecasted, a portion of the credit reserve may be reallocated to accretable discount and recognized into interest income over time. Conversely, if the performance of a security with a credit reserve is less favorable than forecasted, the amount designated as credit reserve may be increased, or impairment charges and write-downs of such securities to a new cost basis could result. When the fair value of an AFS security is less than its amortized cost at the reporting date, the security is considered impaired. We assess our impaired securities at least quarterly to determine if the impairment is temporary or other-than-temporary (resulting in an OTTI). If we either - (i) intend to sell the impaired security; (ii) will more likely than not be required to sell the impaired security before it recovers in value; or (iii) if there has been an adverse change in cash flows - the impairment is deemed an OTTI. In the case of criteria (i) and (ii), we record the entire difference between the security’s estimated fair value and its amortized cost at the reporting date in our consolidated statements of income. If there has been an adverse change in cash flows, only the portion of the OTTI related to “credit” losses is recognized through other market valuation adjustments on our consolidated statements of income, with the remaining “non-credit” portion recognized through AOCI on our consolidated balance sheet. If the first two criteria are not met and there has not been an adverse change in cash flows, the impairment is considered temporary and the entire unrealized loss is recognized through AOCI on our consolidated balance sheets. For impaired AFS securities, to determine if there has been an adverse change in cash flows and if any portion of a resulting OTTI is related to credit losses, we compare the present value of the cash flows expected to be collected as of the current financial reporting date to the amortized cost basis of the security. The discount rate used to calculate the present value of expected future cash flows is the current yield used for income recognition purposes. If the present value of the current expected cash flows is less than the amortized cost basis, there has been an adverse change and the security is considered OTTI with the difference between these two amounts representing the credit loss. The determination as to whether an OTTI exists and, if so, the amount of credit impairment recognized in earnings is subjective, and based on information available at the time of the assessment as well as our estimates of future performance and cash flows. As a result, the timing and amount of OTTI constitute a material estimate that is susceptible to significant change. See Note 8 for further discussion on real estate securities. MSRs We recognize MSRs through the retention of servicing rights associated with residential mortgage loans that we acquired and subsequently transferred to third parties (including the Agencies) when the transfer meets the GAAP criteria for sale accounting, or through the direct acquisition of MSRs sold by third parties. Our MSRs are held and managed at Redwood Residential Acquisition Corporation, a wholly-owned subsidiary of RWT Holdings, Inc., which is a taxable REIT subsidiary of ours. We contract with licensed sub-servicers to perform servicing functions for loans associated with our MSRs. We have elected the fair value option for all of our MSRs, and they are initially recognized and carried at their estimated fair values. Servicing fee income from MSRs is recorded on a cash basis when received. Net servicing income and changes in the estimated fair value of MSRs are reported in MSR income (loss), net on our consolidated statements of income. See Note 9 for further discussion on MSRs. Cash and Cash Equivalents Cash and cash equivalents include non-restricted cash and highly liquid investments with original maturities of three months or less. The Company maintains its cash and cash equivalents with major financial institutions. Accounts at these institutions are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 for each bank. The Company is exposed to credit risk for amounts held in excess of the FDIC limit. The Company does not anticipate nonperformance by these institutions. Restricted Cash Restricted cash primarily includes principal and interest payments that are collateral for, or payable to, owners of ABS issued by consolidated securitization entities as well as cash held in association with borrowings from the Federal Home Loan Bank of Chicago, and cash associated with our risk sharing transactions with the Agencies. Accrued Interest Receivable Accrued interest receivable includes interest that is due and payable to us and deemed collectible. Cash interest is generally received within thirty days of recording the receivable. For financial assets where we have elected the fair value option, the associated accrued interest receivable on these assets is measured at fair value. For financial assets where we have not elected the fair value option, the associated accrued interest carrying values approximate fair values. Derivative Financial Instruments Derivative financial instruments we typically utilize include swaps, swaptions, financial futures contracts, CMBX credit default index swaps, and “To Be Announced” (“TBA”) contracts. These derivatives are primarily used to manage interest rate risk associated with our operations. In addition, we enter into certain residential loan purchase commitments (“LPCs”) and residential loan forward sale commitments (“FSCs”) that are treated as derivatives for financial reporting purposes. All derivative financial instruments are recorded at their estimated fair value on our consolidated balance sheets. Derivatives with positive fair values to us are reported as assets and derivatives with negative fair values to us are reported as liabilities. We classify each derivative as either (i) a trading instrument (no specific hedging designation for financial reporting purposes) or (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). Changes in the fair values of derivatives accounted for as trading instruments, including any associated interest income or expense, are recorded in our consolidated statements of income through MSR income (loss), net if they are used to manage risks associated with our MSR investments or through mortgage banking and investment activities, net if they are used to manage risks associated with our residential and commercial mortgage banking activities or other residential investments. Valuation changes related to residential LPCs and FSCs are included in mortgage banking and investment activities, net on our consolidated statements of income. Changes in the fair values of derivatives accounted for as cash flow hedges, to the extent they are effective, are recorded in accumulated other comprehensive income, a component of equity on our consolidated balance sheets. Interest income or expense, and any ineffectiveness associated with these derivatives, are recorded as a component of net interest income in our consolidated statements of income. We measure the effective portion of cash flow hedges by comparing the change in fair value of the expected future variable cash flows of the derivative hedging instruments with the change in fair value of the expected future variable cash flows of the hedged item. We will discontinue a designated cash flow hedge relationship if (i) we determine that the hedging derivative is no longer expected to be effective in offsetting changes in the cash flows of the designated hedged item; (ii) the derivative expires or is sold, terminated, or exercised; (iii) the derivative is de-designated as a cash flow hedge; or (iv) it is probable that a forecasted transaction associated with the hedged item will not occur by the end of the originally specified time period. To the extent we de-designate or terminate a cash flow hedging relationship and the associated hedged item continues to exist, any unrealized gain or loss of the cash flow hedge at the time of de-designation remains in accumulated other comprehensive income and is amortized using the straight-line method through interest expense over the remaining life of the hedged item. Swaps and Swaptions Interest rate swaps are agreements in which (i) one counterparty exchanges a stream of fixed interest payments for another counterparty’s stream of variable interest cash flows; or (ii) each counterparty exchanges variable interest cash flows that are referenced to different indices. Interest rate swaptions are agreements that provide the owner the right but not the obligation to enter into an underlying interest rate swap with a counterparty in the future. We enter into swap and swaptions primarily to reduce significant changes in our income or equity caused by interest rate volatility. Certain of these interest rate agreements may be designated as cash flow hedges. Eurodollar Futures and Financial Futures Eurodollar futures are futures contracts on time deposits denominated in U.S. dollars at banks outside the United States. Eurodollar futures, unlike our other derivatives, have maturities of only three months. Therefore, in order to achieve the desired interest rate offset necessary to manage our risk, consecutively maturing contracts are required, resulting in a stated notional amount that is typically higher than our other derivatives. Financial futures are futures contracts on benchmark U.S. Treasury rates. TBA Contracts TBA contracts are forward contracts to purchase mortgage-backed securities that will be issued by a U.S. government sponsored enterprise in the future. We purchase or sell these derivatives to offset - to varying degrees - changes in the values of mortgage products for which we have exposure to interest rate volatility. CMBX Credit Default Index Swaps CMBX credit default index swaps are derivative instruments that reference an index reflecting the performance of specified tranches from selected commercial mortgage-backed securities (“CMBS”) transactions. Transacting in CMBX credit default index swaps enables us to hedge certain financial risks we are exposed to as we originate senior commercial mortgage loans in anticipation of the sale of these loans into CMBS transactions. Loan Purchase and Forward Sale Commitments We use the term LPCs to refer to agreements with third-party residential loan originators to purchase residential loans at a future date that qualify as a derivative under GAAP and we use the term FSCs to refer to agreements with third-parties to sell residential loans at a future date that also qualify as derivatives under GAAP. LPCs and FSCs are recorded at their estimated fair values on our consolidated balance sheets and changes in fair value are recurring and are reported through our consolidated statements of income in mortgage banking and investment activities, net. See Note 10 for further discussion on derivative financial instruments. Deferred Tax Assets and Liabilities Our deferred tax assets/liabilities are generated by temporary differences in GAAP and taxable income at our taxable subsidiaries. These differences generally reflect differing accounting treatments for GAAP and tax, such as accounting for mortgage servicing rights, discount and premium amortization, credit losses, asset impairments, and certain valuation estimates. As a result of these differences, we may recognize taxable income in periods prior to when we recognize income for GAAP. When this occurs, we pay the tax liability as required and establish a deferred tax asset. As the income is subsequently realized in future periods under GAAP, the deferred tax asset is reduced. We may also recognize GAAP income in periods prior to when we recognize income for tax. When this occurs, we establish a deferred tax liability for GAAP.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments For financial reporting purposes, we follow a fair value hierarchy established under GAAP that is used to determine the fair value of financial instruments. This hierarchy prioritizes relevant market inputs in order to determine an “exit price” at the measurement date, or the price at which an asset could be sold or a liability could be transferred in an orderly process that is not a forced liquidation or distressed sale. Level 1 inputs are observable inputs that reflect quoted prices for identical assets or liabilities in active markets. Level 2 inputs are observable inputs other than quoted prices for an asset or liability that are obtained through corroboration with observable market data. Level 3 inputs are unobservable inputs (e.g., our own data or assumptions) that are used when there is little, if any, relevant market activity for the asset or liability required to be measured at fair value. In certain cases, inputs used to measure fair value fall into different levels of the fair value hierarchy. In such cases, the level at which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input requires judgment and considers factors specific to the asset or liability being measured. The following table presents the carrying values and estimated fair values of assets and liabilities that are required to be recorded or disclosed at fair value at December 31, 2015 and December 31, 2014 . Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities December 31, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value (In Thousands) Assets Residential loans, held-for-sale At fair value $ 1,114,305 $ 1,114,305 $ 1,341,032 $ 1,341,032 At lower of cost or fair value 1,433 1,635 1,488 1,669 Residential loans, held-for-investment (1) At fair value 2,813,065 2,813,065 581,668 581,668 At amortized cost — — 1,474,386 1,381,918 Commercial loans, held-for-sale 39,141 39,141 166,234 166,234 Commercial loans, held-for-investment At fair value 67,657 67,657 71,262 71,262 At amortized cost 295,849 300,824 329,431 334,876 Trading securities 404,011 404,011 111,606 111,606 Available-for-sale securities 829,245 829,245 1,267,624 1,267,624 MSRs 191,976 191,976 139,293 139,293 Cash and cash equivalents 220,229 220,229 269,730 269,730 Restricted cash 5,567 5,567 628 628 Accrued interest receivable 23,290 23,290 18,222 18,222 Derivative assets 16,393 16,393 16,417 16,417 REO (2) 4,896 5,282 4,391 4,703 Margin receivable (2) 83,191 83,191 65,374 65,374 FHLBC stock (2) 34,437 34,437 10,688 10,688 Guarantee asset (2) 5,697 5,697 7,201 7,201 Pledged collateral (2) 53,600 53,600 9,927 9,927 Liabilities Short-term debt $ 1,855,003 $ 1,855,003 $ 1,793,825 $ 1,793,825 Accrued interest payable 8,936 8,936 8,502 8,502 Margin payable 6,415 6,415 6,455 6,455 Guarantee obligation 22,704 22,702 7,201 7,201 Derivative liabilities 62,794 62,794 58,331 58,331 ABS issued (1) Fair value 996,820 996,820 — — Amortized cost 53,137 53,137 1,545,119 1,446,605 FHLBC long-term borrowings 1,343,023 1,343,023 495,860 495,860 Commercial secured borrowings 63,152 63,152 66,707 66,707 Convertible notes 492,500 461,053 492,500 492,188 Other long-term debt 139,500 83,700 139,500 101,835 (1) Upon adoption of ASU 2014-13 on January 1, 2015, we began to record loans held-for-investment in, and ABS issued by, consolidated Sequoia entities at fair value. See Note 3 for further discussion. (2) These assets are included in other assets on our consolidated balance sheets. During the years ended December 31, 2015 and 2014 , we elected the fair value option for $236 million and $72 million of residential senior securities, $164 million and $9 million of residential subordinate securities, $10.21 billion and $8.81 billion of residential loans (principal balance), $618 million and $935 million of commercial loans (principal balance), $95 million and $96 million of MSRs, and zero and $7 million of guarantee assets, respectively. We anticipate electing the fair value option for all future purchases of residential loans and commercial senior loans that we intend to sell to third parties or transfer to securitizations as well as for MSRs purchased or retained from sales of residential loans. The following table presents the assets and liabilities that are reported at fair value on our consolidated balance sheets on a recurring basis at December 31, 2015 and December 31, 2014 , as well as the fair value hierarchy of the valuation inputs used to measure fair value. Table 5.2 – Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2015 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 3,927,370 $ — $ 129,819 $ 3,797,551 Commercial loans 106,798 — — 106,798 Trading securities 404,011 — — 404,011 Available-for-sale securities 829,245 — — 829,245 Derivative assets 16,393 2,734 8,988 4,671 MSRs 191,976 — — 191,976 Pledged collateral 53,600 53,600 — — FHLBC stock 34,437 — 34,437 — Guarantee asset 5,697 — — 5,697 Liabilities Derivative liabilities 62,794 2,963 58,368 1,463 Commercial secured borrowings 63,152 — — 63,152 ABS issued 996,820 — — 996,820 December 31, 2014 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 1,922,700 $ — $ 244,716 $ 1,677,984 Commercial loans 237,496 — — 237,496 Trading securities 111,606 — — 111,606 Available-for-sale securities 1,267,624 — — 1,267,624 Derivative assets 16,417 6,654 8,603 1,160 MSRs 139,293 — — 139,293 Pledged collateral 9,927 9,927 — — FHLBC Stock 10,688 — 10,688 — Guarantee asset 7,201 — — 7,201 Liabilities Derivative liabilities 58,331 9,878 48,412 41 Commercial secured borrowings 66,707 — — 66,707 The following table presents additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2015 and December 31, 2014 . Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets Liabilities Residential Loans Commercial Loans Trading Securities AFS Securities MSRs Guarantee Asset Derivatives (1) Commercial Secured Borrowings ABS Issued (In Thousands) Beginning balance - December 31, 2014 $ 1,677,984 $ 237,496 $ 111,606 $ 1,267,624 $ 139,293 $ 7,201 $ 1,119 $ 66,707 $ — Transfer to FVO (2) 1,370,699 — — — — — — — 1,302,216 Acquisitions 5,231,532 617,519 399,990 33,370 95,281 — — — — Sales (3,857,807 ) (754,636 ) (83,038 ) (366,373 ) (18,206 ) — — — (1,362 ) Principal paydowns (612,473 ) (780 ) (7,245 ) (131,387 ) — — — (593 ) (312,800 ) Gains (losses) in net income, net (6,071 ) 7,199 (17,302 ) 72,612 (24,392 ) (1,377 ) 60,823 (3,011 ) 8,366 Unrealized losses in OCI, net — — — (46,961 ) — — — — — Other settlements, net (3) (6,313 ) — — 360 — (127 ) (58,734 ) 49 400 Ending balance - December 31, 2015 $ 3,797,551 $ 106,798 $ 404,011 $ 829,245 $ 191,976 $ 5,697 $ 3,208 $ 63,152 $ 996,820 Assets Liabilities (In Thousands) Residential Loans Commercial Loans Trading Securities AFS Securities MSRs Guarantee Asset Derivatives (1) Commercial Secured Borrowings Beginning balance - December 31, 2013 $ 391,100 $ 89,111 $ 124,555 $ 1,558,306 $ 64,824 $ — $ (379 ) $ — Acquisitions 5,020,988 937,594 81,545 237,499 95,550 7,201 — 65,048 Sales (3,746,417 ) (807,931 ) (64,393 ) (440,361 ) — — — — Principal paydowns (42,657 ) (4,157 ) (5,934 ) (168,308 ) — — — (374 ) Amortization income — — — 32,774 — — — — Gains (losses) in net income, net 56,835 22,824 (24,167 ) 23,412 (21,081 ) — 14,527 2,033 Unrealized gains in OCI, net — — — 24,302 — — — — Other settlements, net (3) (1,865 ) 55 — — — — (13,029 ) — Ending balance - December 31, 2014 $ 1,677,984 $ 237,496 $ 111,606 $ 1,267,624 $ 139,293 $ 7,201 $ 1,119 $ 66,707 (1) For the purpose of this presentation, derivative assets and liabilities, which consist of loan purchase commitments, are presented on a net basis. (2) Upon adoption of ASU 2014-13 on January 1, 2015, loans held-for-investment in, and ABS issued by, consolidated financial entities are now recorded at fair value. See Note 3 for further discussion. (3) Other settlements, net for derivatives represents the transfer of the fair value of loan purchase commitments at the time loans are acquired to the basis of residential loans. The following table presents the portion of gains or losses included in our consolidated statements of income that were attributable to Level 3 assets and liabilities recorded at fair value on a recurring basis and held at December 31, 2015 , 2014 , and 2013 . Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the years ended December 31, 2015 , 2014 , and 2013 are not included in this presentation. Table 5.4 – Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held at December 31, 2015 , 2014 , and 2013 Included in Net Income Included in Net Income Years Ended December 31, (In Thousands) 2015 2014 2013 Assets Residential loans at Redwood $ (5,541 ) $ 16,512 $ (290 ) Residential loans at consolidated Sequoia entities 7,422 — — Commercial loans (2,620 ) 3,357 1,501 Trading securities (13,391 ) (25,216 ) 32,496 Available-for-sale securities (246 ) (434 ) (1,108 ) MSRs (3,471 ) (15,239 ) 14,196 Loan purchase commitments 4,252 1,119 — Guarantee asset (1,504 ) — — Liabilities Loan purchase commitments $ — $ — $ (379 ) Commercial secured borrowing 3,011 2,033 — ABS issued (8,366 ) — — The following table presents information on assets recorded at fair value on a non-recurring basis at December 31, 2015 and December 31, 2014 . This table does not include the carrying value and gains or losses associated with the asset types below that were not recorded at fair value on our balance sheet at December 31, 2015 and December 31, 2014 . Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Gain (Loss) for Year Ended December 31, 2015 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2015 Assets Residential loans, at lower of cost or fair value $ 1,096 $ — $ — $ 1,096 $ 3 REO 2,395 — — 2,395 (764 ) Liabilities Guarantee obligation 4,414 — — 4,414 — Gain (Loss) for Year Ended December 31, 2014 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2014 Assets Residential loans, at lower of cost or fair value $ 1,104 $ — $ — $ 1,104 $ (1 ) REO 2,069 — — 2,069 (320 ) Liabilities Guarantee obligation 7,201 — — 7,201 — The following table presents the net market valuation gains and losses recorded in each line item of our consolidated statements of income for the years ended December 31, 2015 , 2014 , and 2013 . Table 5.6 – Market Valuation Gains and Losses, Net Years Ended December 31, (In Thousands) 2015 2014 2013 Mortgage banking and investment activities, net Residential loans held-for-sale, at fair value $ 3,712 $ 51,312 $ (10,455 ) Residential loan purchase and forward sale commitments 50,234 13,891 (399 ) Residential loans held-for-investment at fair value, at Redwood (6,337 ) (697 ) — Consolidated Sequoia entities (1) (1,192 ) (894 ) (612 ) Commercial loans, at fair value (2) 10,265 20,788 8,694 Trading securities (17,279 ) (24,197 ) 38,926 Impairments on AFS securities (246 ) (565 ) (1,833 ) Risk management derivatives, net (52,146 ) (38,959 ) 51,385 Guarantee asset (1,504 ) — — Other investments (382 ) 104 — Total mortgage banking and investment activities, net (3) $ (14,875 ) $ 20,783 $ 85,706 MSR Income (loss), net MSRs $ (24,392 ) $ (21,081 ) $ 11,995 Risk management derivatives, net (12,708 ) — — Total MSR income (loss), net (4) $ (37,100 ) $ (21,081 ) $ 11,995 Total market valuation gains and losses, net $ (51,975 ) $ (298 ) $ 97,701 (1) On January 1, 2015, we adopted ASU 2014-13 and began to record the assets and liabilities of consolidated Sequoia entities at fair value. This amount includes the net change in fair value of the consolidated assets and liabilities of these entities, which include residential loans held-for-investment, REO, and ABS issued. This combined amount represents the estimated change in value of our retained interests in these entities. See Note 3 for further discussion. (2) Commercial loans at fair value does not include commercial A-notes, which were sold in 2014, but did not qualify for sale treatment under GAAP. The market valuation gains and losses on the commercial A-notes and associated commercial secured borrowings net to zero in each period presented. (3) Mortgage banking and investment activities, net presented above does not include fee income or provisions for repurchases that are components of mortgage banking and investment activities, net presented on our consolidated statements of income, as these amounts do not represent market valuation changes. (4) MSR Income (loss), net presented above does not include net fee income or provisions for repurchases that are components of MSR Income (loss), net on our consolidated statements of income, as these amounts do not represent market valuation adjustments. Valuation Policy We maintain a policy that specifies the methodologies we use to value different types of financial instruments. Significant changes to the valuation methodologies are reviewed by members of senior management to confirm the changes are appropriate and reasonable. Valuations based on information from external sources are performed on an instrument-by-instrument basis with the resulting amounts analyzed individually against internal calculations as well as in the aggregate by product type classification. Initial valuations are performed by our portfolio management groups using the valuation processes described below. Our finance department then independently reviews all fair value estimates using available market, portfolio, and industry information to ensure they are reasonable. Finally, members of senior management review all fair value estimates, including an analysis of the methodology and valuation changes from prior reporting periods. Valuation Process We estimate fair values for financial assets or liabilities based on available inputs observed in the marketplace as well as unobservable inputs. We primarily use two pricing valuation techniques: market comparable pricing and discounted cash flow analysis. Market comparable pricing is used to determine the estimated fair value of certain instruments by incorporating known inputs and performance metrics, such as observed prepayment rates, delinquencies, credit support, recent transaction prices, pending transactions, or prices of other similar instruments. Discounted cash flow analysis techniques generally consist of developing an estimate of future cash flows that are expected to occur over the life of an instrument and then discounting those cash flows at a rate of return that results in an estimate of fair value. After considering all available indications of the appropriate rate of return that market participants would require, we consider the reasonableness of the range indicated by the results to determine an estimate that is most representative of fair value. We also consider counterparty credit quality and risk as part of our fair value assessments. The following table provides quantitative information about the significant unobservable inputs used in the valuation of our Level 3 assets and liabilities measured at fair value. Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments December 31, 2015 Fair Value Weighted Average (Dollars in Thousands, except input values) Unobservable Input Range Assets Residential loans, at fair value: Jumbo fixed rate loans $ 1,936,062 Whole loan spread to TBA price $ 3.10 - $ 4.53 $ 4.27 Jumbo hybrid loans 206,309 Prepayment rate (Annual CPR) 15 - 15 % 15 % Spread to swap rate 125 - 165 bps 138 bps Jumbo loans committed to sell 633,310 Committed Sales Price $ 102.56 - $ 102.61 $ 102.58 Loans held by consolidated Sequoia entities (1) 1,021,870 Liability price N/A N/A Residential loans, at lower of cost or fair value 1,096 Loss severity 13 - 30 % 21 % Commercial loans, at fair value 106,798 Spread to swap rate 221 - 221 bps 221 bps Credit support 26 - 26 % 26 % Trading and AFS securities 1,233,256 Discount rate 5 - 12 % 6 % Prepayment rate (annual CPR) 1 - 35 % 12 % Default rate 0 - 35 % 6 % Loss severity 20 - 65 % 29 % Credit support 0 - 48 % 4 % MSRs 191,976 Discount rate 9 - 12 % 10 % Prepayment rate (annual CPR) 5 - 60 % 10 % Per loan annual cost to service $ 72 - $ 82 $ 79 Guarantee asset 5,697 Discount rate 11 - 11 % 11 % Prepayment rate (annual CPR) 12 - 12 % 12 % REO 2,395 Loss severity 0 - 89 % 51 % Loan purchase commitments, net (2) 3,208 MSR Multiple 0 - 6 x 3.4 x Fallout rate 1 - 99 % 25 % Whole loan spread to TBA price 3.10 - 4.38 4.16 Prepayment rate (Annual CPR) 15 - 15 15 % Spread to swap rate 125 - 165 bps 137 bps Liabilities ABS issued (1) 996,820 Discount rate 5 - 9 % 5 % Prepayment rate (annual CPR) 2 - 23 % 12 % Default rate 1 - 12 % 7 % Loss severity 20 - 32 % 27 % Credit support — - 33 % 9 % Commercial secured financing 63,152 Spread to swap rate 219 - 220 bps 220 bps Credit support 25 % - 25 % 25 % Notes to Table 5.7 (1) Upon adoption of ASU 2014-13 on January 1, 2015, we began to record loans held-for-investment in, and ABS issued by, consolidated Sequoia entities at fair value. In accordance with this new guidance, the fair value of the loans in these entities was based on the fair value of the liabilities (ABS) issued by these entities, which we determined were more readily observable. See Note 3 for further discussion. (2) For the purpose of this presentation, loan purchase commitment assets and liabilities are presented net. Determination of Fair Value A description of the instruments measured at fair value as well as the general classification of such instruments pursuant to the Level 1, Level 2, and Level 3 valuation hierarchy is listed herein. We generally use both market comparable information and discounted cash flow modeling techniques to determine the fair value of our Level 3 assets and liabilities. Use of these techniques requires determination of relevant inputs and assumptions, some of which represent significant unobservable inputs as indicated in the preceding table. Accordingly, a significant increase or decrease in any of these inputs – such as anticipated credit losses, prepayment rates, interest rates, or other valuation assumptions – in isolation would likely result in a significantly lower or higher fair value measurement. Residential Loans Estimated fair values for residential loans are determined using models that incorporate various observable inputs, including pricing information from recent securitizations and whole loan sales. Certain significant inputs in these models are considered unobservable and are therefore Level 3 in nature. Pricing inputs obtained from market securitization activity include indicative spreads to indexed TBA prices for senior RMBS and indexed swap rates for subordinate RMBS (Level 3). Pricing inputs obtained from market whole loan transaction activity include indicative spreads to indexed TBA prices for fixed-rate loans and indexed swap rates for hybrid loans (Level 3). Other observable inputs include Agency RMBS transactions, benchmark interest rates, and prepayment rates. At December 31, 2015, our jumbo fixed-rate loans were priced exclusively using whole loan sale inputs. These assets would generally decrease in value based upon an increase in the credit spread, prepayment speed, or credit support assumptions. Estimated fair values for conforming loans are determined based upon quoted market prices (Level 2). Conforming loans are mortgage loans that conform to Agency guidelines. As necessary, these values are adjusted for servicing value, market conditions and liquidity. Commercial Loans Estimated fair values for senior commercial loans held-for-sale are determined by an exit price to securitization. Certain significant inputs in the valuation analysis are Level 3 in nature. Relevant market indicators that are factored into the analyses include pricing points for current third-party Commercial Mortgage-Backed Securities (“CMBS”) sales, pricing points for secondary sales of CMBS, yields for synthetic instruments that use CMBS bonds as an underlying index, indexed swap yields, credit rating agency guidance on expected credit enhancement levels for newly issued CMBS transactions, and interest rates (Level 3). In certain cases, commercial senior mortgage loans are valued based on third-party offers for the loans for purchase into securitization (Level 2). The estimated fair value of our senior commercial loans would generally decrease based upon an increase in credit spreads or required credit support. Estimated fair values for mezzanine commercial loans are determined by both market comparable pricing and discounted cash flow analysis valuation techniques (Level 3). Our discounted cash flow models utilize certain significant unobservable inputs including the underwritten net operating income and debt coverage ratio assumptions and actual performance relative to those underwritten metrics as well as estimated market discount rates. An increase in market discount rates would reduce the estimated fair value of the commercial loans. Real Estate Securities Real estate securities include residential, commercial, and other asset-backed securities that are generally illiquid in nature and trade infrequently. Significant inputs in the valuation analysis are predominantly Level 3 in nature, due to the lack of readily available market quotes and related inputs. For real estate securities, we utilize both market comparable pricing and discounted cash flow analysis valuation techniques. Relevant market indicators that are factored into the analyses include bid/ask spreads, the amount and timing of credit losses, interest rates, and collateral prepayment rates. Estimated fair values are based on applying the market indicators to generate discounted cash flows (Level 3). These cash flow models use significant unobservable inputs such as a discount rate, prepayment rate, default rate, loss severity and credit support. The estimated fair value of our securities would generally decrease based upon an increase in default rates, serious delinquencies, or a decrease in prepayment rates or credit support. As part of our securities valuation process, we request and consider indications of value from third-party securities dealers. For purposes of pricing our securities at December 31, 2015 , we received dealer price indications on 79% of our securities, representing 94% of our carrying value. In the aggregate, our internal valuations of the securities for which we received dealer price indications were within 1% of the aggregate average dealer valuations. Once we receive the price indications from dealers, they are compared to other relevant market inputs, such as actual or comparable trades, and the results of our discounted cash flow analysis. In circumstances where relevant market inputs cannot be obtained, increased reliance on discounted cash flow analysis and management judgment are required to estimate fair value. Derivative Assets and Liabilities Our derivative instruments include swaps, swaptions, TBAs, financial futures, CMBX credit default index swaps, loan purchase commitments ("LPCs"), and forward sale commitments ("FSCs"). Fair values of derivative instruments are determined using quoted prices from active markets, when available, or from valuation models and are supported by valuations provided by dealers active in derivative markets. TBA and financial futures fair values are generally obtained using quoted prices from active markets (Level 1). Our derivative valuation models for swaps and swaptions require a variety of inputs, including contractual terms, market prices, yield curves, credit curves, measures of volatility, prepayment rates, and correlations of certain inputs. Model inputs can generally be verified and model selection does not involve significant management judgment (Level 2). LPC fair values for conforming loans are estimated based on quoted Agency MBS prices, estimates of the fair value of the MSRs we expect to retain in the sale of the loans, and the probability that the mortgage loan will be purchased (Level 3). FSC fair values for conforming loans are obtained using quoted Agency prices. LPC fair values for jumbo loans are estimated based on the estimated fair values of the underlying loans (as described in " Residential loans " above) as well as the probability that the mortgage loan will be purchased (Level 3). For other derivatives, valuations are based on various factors such as liquidity, bid/ask spreads, and credit considerations for which we rely on available market inputs. In the absence of such inputs, management’s best estimate is used (Level 3). MSRs MSRs include the rights to service jumbo and conforming residential mortgage loans. Significant inputs in the valuation analysis are predominantly Level 3, due to the nature of these instruments and the lack of readily available market quotes. These inputs include market discount rates, prepayment rates of serviced loans, and the market cost of servicing. Changes in the fair value of MSRs occur primarily due to the collection/realization of expected cash flows, as well as changes in valuation inputs and assumptions. Estimated fair values are based on applying the inputs to generate the net present value of estimated future MSR income (Level 3). These discounted cash flow models utilize certain significant unobservable inputs including prepayment rate and discount rate assumptions. An increase in these unobservable inputs will reduce the estimated fair value of the MSRs. As part of our MSR valuation process, we received a valuation estimate from a third-party valuations firm. In the aggregate, our internal valuation of the MSRs were within 1% of the third-party valuation. FHLBC Stock Our Federal Home Loan Bank ("FHLB") member subsidiary is required to purchase Federal Home Loan Bank of Chicago ("FHLBC") stock under a borrowing agreement between our FHLBC member subsidiary and the FHLBC. Under this agreement, the stock is redeemable at face value, which represents the carrying value and fair value of the stock (Level 2). Guarantee Asset The guarantee asset represents the estimated fair value of cash flows we are contractually entitled to receive related to a risk sharing arrangement with Fannie Mae. Significant inputs in the valuation analysis are Level 3, due to the nature of this asset and the lack of market quotes. The fair value of the guarantee asset is determined using a discounted cash flow model, for which significant inputs include prepayment rates and market discount rate (Level 3). An increase in prepayment speed or market discount rate will reduce the estimated fair value of the guarantee asset. Pledged Collateral Pledged collateral consists of cash and U.S. Treasury securities held by a custodian in association with certain agreements we have entered into. Treasury securities are carried at their fair value, which is determined using quoted prices in active markets Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less. Fair values equal carrying values (Level 1). Restricted Cash Restricted cash primarily includes interest-earning cash balances at consolidated Sequoia entities and at the Residential Resecuritization and Commercial Securitization entities for the purpose of distribution to investors and reinvestment. Due to the short-term nature of the restrictions, fair values approximate carrying values (Level 1). Accrued Interest Receivable and Payable Accrued interest receivable and payable includes interest due on our assets and payable on our liabilities. Due to the short-term nature of when these interest payments will be received or paid, fair values approximate carrying values (Level 1). REO REO includes properties owned in satisfaction of foreclosed loans. Fair values are determined using available market quotes, appraisals, broker price opinions, comparable properties, or other indications of value (Level 3). Margin Receivable Margin receivable reflects cash collateral we have posted with our various derivative and debt counterparties as required to satisfy margin requirements. Fair values approximate carrying values (Level 2). Guarantee Obligations In association with our risk sharing transactions with the Agencies we have made certain guarantees. For these transactions, at the close of each delivery period, or at quarter-end for open delivery periods, we recognize a liability representing the fair value of the guarantee obligation we assumed. Fair values of guarantee obligations are determined using internal models that incorporate certain significant inputs that are considered unobservable and are therefore Level 3 in nature. Pricing inputs include prepayment assumptions, loss assumptions, and discount rates. An increase in discount rates or loss rates, or a decrease in prepayment rates, would reduce the estimated fair value of the guarantee obligations. Short-term Debt Short-term debt includes our credit facilities that mature within one year. As these borrowings are secured and subject to margin calls and as the rates on these borrowings reset frequently to market rates, we believe that carrying values approximate fair values (Level 2). ABS Issued ABS issued includes asset-backed securities issued through the Sequoia, Residential Resecuritization, and Commercial Securitization entities. These instruments are generally illiquid in nature and trade infrequently. Significant inputs in the valuation analysis are predominantly Level 3, due to the nature of these instruments and the lack of readily available market quotes. For ABS issued, we utilize both market comparable pricing and discounted cash flow analysis valuation techniques. Relevant market indicators factored into the analyses include bid/ask spreads, the amount and timing of collateral credit losses, interest rates, and collateral prepayment rates. Estimated fair values are based on applying the market indicators to generate discounted cash flows (Level 3). These liabilities would generally decrease in value (become a larger liability) if credit losses decreased or if the prepayment rate or discount rate were to increase. FHLBC Borrowings FHLBC borrowings include amounts borrowed from the FHLBC that are secured, generally by residential mortgage loans. As these borrowings are secured and subject to margin calls and as the rates on these borrowings reset frequently to market rates, we believe that carrying values approximate fair values (Level 2). Commercial Secured Borrowings Commercial secured borrowings represent liabilities recognized as a result of transfers of portions of senior commercial mortgage loans to third parties that do not meet the criteria for sale treatment under GAAP and are accounted for as secured borrowings. Fair values for commercial secured borrowings are based on the fair values of the senior commercial loans associated with the borrowings (Level 3). Convertible Notes Convertible notes include unsecured convertible and exchangeable senior notes. Fair values are determined using quoted prices in active markets (Level 2). Trust Preferred Securities and Subordinated Notes Estimated fair values of trust preferred securities and subordinated notes are determined using discounted cash flow analysis valuation techniques. Significant inputs in the valuation analysis are predominantly Level 3, due to the nature of these instruments and the lack of readily available market quotes. Estimated fair values are based on applying the market indicators to generate discounted cash flows (Level 3).

Residential Loans

Residential Loans	12 Months Ended
	Dec. 31, 2015
Residential Loans
Mortgage Loans on Real Estate [Line Items]
Loans	Residential Loans We acquire residential loans from third-party originators. The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia entities at December 31, 2015 and December 31, 2014 . Table 6.1 – Classifications and Carrying Values of the Residential Loans December 31, 2015 (In Thousands) Redwood Sequoia (1) Total Held-for-sale Fair value - conforming $ 129,819 $ — $ 129,819 Fair value - jumbo 984,486 — 984,486 Lower of cost or fair value - jumbo 1,433 — 1,433 Total held-for-sale 1,115,738 — 1,115,738 Held-for-investment Fair value - jumbo 1,791,195 1,021,870 2,813,065 Total Residential Loans $ 2,906,933 $ 1,021,870 $ 3,928,803 December 31, 2014 (In Thousands) Redwood Sequoia (1) Total Held-for-sale Fair value - conforming $ 244,714 $ — $ 244,714 Fair value - jumbo 1,096,317 — 1,096,317 Lower of cost or fair value - jumbo 1,488 — 1,488 Total held-for-sale 1,342,519 — 1,342,519 Held-for-investment Fair value - jumbo 581,668 — 581,668 At amortized cost — 1,474,386 1,474,386 Total Residential Loans $ 1,924,187 $ 1,474,386 $ 3,398,573 (1) Upon adoption of ASU 2014-13 on January 1, 2015, we began to record loans held-for-investment at consolidated Sequoia entities at fair value. See Note 3 for further discussion. At December 31, 2015 , we owned mortgage servicing rights associated with $2.23 billion (principal balance) of consolidated residential loans purchased from third-party originators. The value of these MSRs is included in the carrying value of the associated loans on our balance sheet. We contract with a licensed sub-servicer that performs servicing functions for these loans. Residential Loans Held-for-Sale At Fair Value At December 31, 2015 , we owned 1,763 loans held-for-sale at fair value with an unpaid principal balance of $1.09 billion and an aggregate fair value of $1.11 billion , compared to 2,273 loans with an unpaid principal balance of $1.30 billion and an aggregate fair value of $1.34 billion at December 31, 2014 . At December 31, 2015 , two of these loans were greater than 90 days delinquent and one of these loans was in foreclosure. At December 31, 2014 , none of these loans were greater than 90 days delinquent and one of these loans was in foreclosure. During the years ended December 31, 2015 and 2014 , we purchased $10.21 billion and $8.81 billion (principal balance) of loans, respectively, for which we elected the fair value option. During the years ended December 31, 2015 and 2014 , we recorded $4 million and $51 million of positive valuation adjustments, respectively, on residential loans held-for-sale at fair value through mortgage banking and investment activities, net, a component of our consolidated statements of income. During the years ended December 31, 2015 and 2014 , we sold $9.04 billion and $7.90 billion (principal balance) of loans held-for-sale, respectively. At December 31, 2015 , loans held-for-sale with a market value of $1.07 billion were pledged as collateral under short-term borrowing agreements. At Lower of Cost or Fair Value At both December 31, 2015 and December 31, 2014 , we held nine residential loans at the lower of cost or fair value with $2 million in outstanding principal balance. At December 31, 2015 , two of these loans were greater than 90 days delinquent and one of these loans was in foreclosure. At December 31, 2014 , none of these loans were greater than 90 days delinquent and one of these loans were in foreclosure. Residential Loans Held-for-Investment at Fair Value At Redwood At December 31, 2015 , we owned 2,398 held-for-investment loans at Redwood with an unpaid principal balance of $1.76 billion and an aggregate fair value of $1.79 billion , compared to 804 loans with an unpaid principal balance of $566 million and an aggregate fair value of $580 million at December 31, 2014 . At December 31, 2015 , none of these loans were greater than 90 days delinquent and none of these loans were in foreclosure. At December 31, 2014 , none of these loans were greater than 90 days delinquent and one of the loans was in foreclosure. During the years ended December 31, 2015 and 2014 , we transferred loans with a fair value of $1.50 billion and $583 million , respectively, from held-for-sale to held-for-investment. During the year ended December 31, 2015 , we transferred loans with a fair value of $143 million from held-for-investments to held-for-sale. We did not transfer loans from held-for-investments to held-for-sale during the year ended December 31, 2014. During the years ended December 31, 2015 and 2014 , we recorded negative $6 million and negative $1 million of valuation adjustments, respectively, on residential loans held-for-investment at fair value through mortgage banking and investment activities, net, a component of our consolidated statements of income. At December 31, 2015 , $1.68 billion of these loans were pledged as collateral under a borrowing agreement with the FHLBC. The outstanding loans held-for-investment at Redwood at December 31, 2015 were prime-quality, first lien loans, of which 88% were originated in 2014 and 2015, 6% were originated in 2013, and 6% were originated in 2012 and prior years. The weighted average FICO score of borrowers backing these loans was 772 (at origination) and the weighted average loan-to-value ("LTV") ratio of these loans was 65% (at origination). At December 31, 2015 , these loans were comprised of 97% fixed-rate loans with a weighted average coupon of 4.07% , and the remainder were hybrid or ARM loans with a weighted average coupon of 3.55% . At Consolidated Sequoia Entities On January 1, 2015, we eliminated $13 million of unamortized premium, net and $21 million of allowance for loan losses related to loans at our consolidated Sequoia entities as part of our initial adoption of ASU 2014-13 and recorded a valuation adjustment on these loans to reduce the loan carrying values to their estimated fair values. See Note 3 for further discussion. The following table details the carrying value for residential loans held-for-investment at consolidated Sequoia entities at December 31, 2015 and December 31, 2014 . Table 6.2 – Carrying Value for Held-for-Investment Residential Loans at Sequoia Entities (In Thousands) December 31, 2015 December 31, 2014 Principal balance $ 1,122,415 $ 1,483,213 Unamortized premium, net — 12,511 Allowance for loan losses — (21,338 ) Valuation adjustment (100,545 ) — Carrying Value $ 1,021,870 $ 1,474,386 At December 31, 2015 , we owned 4,545 held-for-investment loans at consolidated Sequoia entities. At origination, the weighted average FICO score of borrowers backing these loans was 729 , the weighted average LTV ratio of these loans was 66% and the loans were nearly all first lien and prime-quality. At December 31, 2015 and December 31, 2014 , the unpaid principal balance of loans at consolidated Sequoia entities delinquent greater than 90 days was $59 million and $70 million , respectively, and the unpaid principal balance of loans in foreclosure was $32 million and $39 million , respectively. During the years ended December 31, 2015 and 2014 , we recorded positive $7 million and zero , respectively, of net valuation adjustments on these loans through mortgage banking and investment activities, net on our consolidated statements of income. Residential Loan Characteristics The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2015 and 2014 . Table 6.3 – Geographic Concentration of the Residential Loans December 31, 2015 December 31, 2014 Geographic Concentration (by Principal) Held-for-Sale Held-for- Investment at Sequoia Held-for- Investment at FVO Held-for-Sale Held-for- Investment at Sequoia Held-for- Investment at FVO California 41 % 18 % 39 % 39 % 20 % 24 % Texas 9 % 6 % 11 % 9 % 5 % 14 % Washington 6 % 2 % 3 % 5 % 2 % 4 % Colorado 5 % 3 % 5 % — % — % 8 % Florida 4 % 14 % 4 % 4 % 13 % 6 % Virginia 3 % 3 % 4 % 5 % 3 % 7 % Georgia 3 % 5 % 1 % 2 % 5 % — % Massachusetts 2 % 2 % 4 % 6 % 2 % 5 % New York 1 % 8 % 5 % 2 % 8 % 3 % Other states (none greater than 5%) 26 % 39 % 24 % 28 % 42 % 29 % Total 100 % 100 % 100 % 100 % 100 % 100 % T he following table displays the loan product type and accompanying loan characteristics of residential loans recorded on our consolidated balance sheets at December 31, 2015 and 2014 . Table 6.4 – Classifications and Carrying Values of Residential Loans December 31, 2015 (In Thousands) Loan Balance Number of Loans Interest Rate (1) Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Held-for-Investment at Redwood (2) : ARM loans $ 251 to $500 2 3.63 % to 3.75% 2044-07 - 2044-07 $ 563 $ — $ — $ 501 to $750 2 3.50 % to 3.50% 2045-09 - 2045-10 1,671 — — $ 751 to $1,000 1 3.63 % to 3.63% 2044-08 - 2044-08 1,267 — — 5 3,501 — — Hybrid ARM loans $ 251 to $500 7 2.88 % to 3.88% 2044-01 - 2044-09 2,963 — — $ 501 to $750 28 2.63 % to 4.9% 2040-09 - 2044-10 17,514 — — $ 751 to $1,000 15 2.75 % to 5.05% 2039-05 - 2044-11 12,994 — — over $1,000 6 2.88 % to 5.2% 2039-04 - 2044-12 8,797 — — 56 42,268 — — Fixed loans $ — to $250 29 3.64 % to 5.38% 2039-04 - 2045-10 5,295 242 — $ 251 to $500 484 3.13 % to 5.13% 2029-07 - 2045-12 212,732 913 — $ 501 to $750 959 2.94 % to 5.25% 2026-11 - 2045-12 595,863 3,213 — $ 751 to $1,000 552 2.90 % to 5.00% 2024-01 - 2045-12 480,557 989 — over $1,000 313 3.14 % to 5.00% 2027-04 - 2045-12 418,774 — — 2,337 1,713,221 5,357 — Total HFI at Redwood: 2,398 $ 1,758,990 $ 5,357 $ — Held-for-Investment at Sequoia (1) : ARM loans: $ — to $250 3,133 0.38 % to 5.16% 2013-02 - 2035-11 $ 355,415 $ 10,661 $ 13,078 $ 251 to $500 858 — % to 5.63% 2013-12 - 2036-05 296,425 9,620 15,345 $ 501 to $750 269 0.63 % to 4.66% 2014-05 - 2035-09 161,273 4,578 7,209 $ 751 to $1,000 135 0.38 % to 2.38% 2019-02 - 2035-07 118,983 3,586 8,473 over $1,000 109 — % to 2.63% 2022-01 - 2036-05 169,492 1,341 14,718 4,504 1,101,588 29,786 58,823 Hybrid ARM loans: $ — to $250 3 2.75 % to 2.88% 2033-09 - 2034-06 317 — — $ 251 to $500 20 2.63 % to 2.88% 2033-07 - 2034-12 7,523 — — $ 501 to $750 15 2.63 % to 2.88% 2033-08 - 2034-12 9,874 542 — $ 751 to $1,000 2 2.75 % to 2.75% 2033-07 - 2033-08 1,547 — — over $1,000 1 2.75 % to 2.75% 2033-09 - 2033-09 1,566 — — 41 20,827 542 — Total HFI at Sequoia: 4,545 $ 1,122,415 $ 30,328 $ 58,823 Held-for-Sale: ARM loans $ 64 to $1,298 14 1.50 % to 4.00% 2032-11 - 2045-12 $ 5,258 $ — $ 415 Hybrid ARM loans $ 164 to $1,989 356 2.50 % to 4.25% 2037-06 - 2046-01 276,457 2,249 — Fixed loans $ 30 to $2,332 1,402 2.75 % to 5.25% 2025-09 - 2046-01 809,803 2,097 1,437 Total Held-for-Sale 1,772 $ 1,091,518 $ 4,346 $ 1,852 December 31, 2014 (In Thousands) Loan Balance Number of Loans Interest Rate (1) Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Held-for-Investment at Redwood (2) : Hybrid ARM loans $ 251 to $500 29 2.38 % to 3.75% 2044-01 - 2044-10 $ 12,487 $ — $ — $ 501 to $750 80 2.38 % to 4.25% 2044-02 - 2044-11 49,085 619 — $ 751 to $1,000 51 2.38 % to 3.75% 2043-05 - 2044-11 43,835 — — over $1,000 14 2.38 % to 3.25% 2044-03 - 2044-11 17,720 — — 174 123,127 619 — Fixed loans $ — to $250 1 4.13 % to 4.13% 2044-07 - 2044-07 75 — — $ 251 to $500 158 3.13 % to 4.75% 2029-01 - 2044-12 72,931 894 — $ 501 to $750 272 3.13 % to 5.00% 2029-04 - 2044-12 165,574 624 — $ 751 to $1,000 136 3.13 % to 4.88% 2029-01 - 2044-12 116,892 — — over $1,000 63 3.25 % to 5.00% 2024-01 - 2044-12 87,773 — — 630 443,245 1,518 — Total HFI at Redwood: 804 $ 566,372 $ 2,137 $ — Held-for-Investment at Sequoia (1) : ARM loans: $ — to $250 3,400 0.25 % to 5.50% 2012-12 - 2035-11 $ 400,779 $ 14,604 $ 16,332 $ 251 to $500 1,041 0.00 % to 5.63% 2013-12 - 2036-05 360,848 14,536 13,955 $ 501 to $750 328 0.50 % to 4.66% 2013-08 - 2035-09 198,661 7,218 12,862 $ 751 to $1,000 162 0.25 % to 2.38% 2019-02 - 2035-07 143,687 2,396 9,262 over $1,000 132 0.00 % to 2.63% 2022-01 - 2036-05 207,539 2,494 16,106 5,063 1,311,514 41,248 68,517 Hybrid ARM loans: $ — to $250 3 2.63 % to 2.63% 2033-09 - 2034-03 364 — — $ 251 to $500 26 2.50 % to 5.15% 2033-07 - 2039-12 10,056 — 319 $ 501 to $750 23 2.50 % to 4.65% 2033-07 - 2040-09 14,711 — — $ 751 to $1,000 11 2.50 % to 4.80% 2033-07 - 2040-12 9,393 — — over $1,000 7 2.50 % to 4.95% 2033-09 - 2040-11 11,786 — — 70 46,310 — 319 Fixed loans: $ — to $250 7 3.70 % to 4.90% 2039-04 - 2041-02 1,040 — — $ 251 to $500 42 3.45 % to 5.13% 2039-02 - 2041-07 17,574 — — $ 501 to $750 71 3.65 % to 5.25% 2039-02 - 2041-08 42,609 — — $ 751 to $1,000 38 4.20 % to 5.25% 2040-08 - 2041-08 32,966 — 726 over $1,000 24 4.30 % to 5.38% 2040-09 - 2041-06 31,200 — — 182 125,389 — 726 Total HFI at Sequoia: 5,315 $ 1,483,213 $ 41,248 $ 69,562 Held-for-Sale: ARM loans $ 66 to $359 8 1.88 % to 2.25% 2032-11 - 2033-10 $ 1,286 $ 170 $ 471 Hybrid ARM loans $ 252 to $1,985 109 2.63 % to 4.00% 2037-06 - 2045-01 84,271 — — Fixed loans $ 75 to $2,496 2,165 2.88 % to 5.00% 2024-12 - 2045-01 1,219,936 1,178 — Total Held-for-Sale 2,282 $ 1,305,493 $ 1,348 $ 471 Notes to Table 6.4 (1) Upon adoption of ASU 2014-13 on January 1, 2015, we began to record loans held-for-investment at consolidated Sequoia entities at fair value. See Note 3 for further discussion. (2) Rate is net of servicing fee for consolidated loans for which we do not own the MSR. For borrowers whose current rate is less than the applicable servicing fee, the rate shown in the table above is zero . Allowance for Loan Losses on Residential Loans Upon adoption of ASU 2014-13 on January 1, 2015, we began to record loans held-for-investment at consolidated Sequoia entities at fair value. See Note 3 for further discussion. Prior to the adoption of ASU 2014-13, we established and maintained an allowance for loan losses for residential loans held-for-investment. The allowance included a component for pools of residential loans owned at Sequoia securitization entities that we collectively evaluated for impairment, and a component for loans individually evaluated for impairment that included restructured residential loans at Sequoia entities were determined to be troubled debt restructurings. Activity in the Allowance for Loan Losses on Residential Loans The following table summarizes the activity in the allowance for loan losses for the years ended December 31, 2015 , 2014 , and 2013 . Table 6.5 – Allowance for Loan Losses Years Ended December 31, (In Thousands) 2015 2014 2013 Balance at beginning of period $ 21,338 $ 25,427 $ 28,504 Charge-offs, net — (4,966 ) (4,525 ) Provision for loan losses — 877 1,448 Other adjustments (1) (21,338 ) — — Balance at End of Period $ — $ 21,338 $ 25,427 (1) Upon adoption of ASU 2014-13 on January 1, 2015, we began to record loans held-for-investment at consolidated Sequoia entities at fair value. See Note 3 for further discussion.

Commercial Loans

Commercial Loans	12 Months Ended
	Dec. 31, 2015
Commercial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	Commercial Loans We invest in commercial loans that we originated as well as loans that we acquired from third-party originators. The following table summarizes the classifications and carrying value of commercial loans at December 31, 2015 and December 31, 2014 . Table 7.1 – Classifications and Carrying Value of Commercial Loans (In Thousands) December 31, 2015 December 31, 2014 Held-for-sale, at fair value $ 39,141 $ 166,234 Held-for-investment At fair value 67,657 71,262 At amortized cost 295,849 329,431 Total Commercial Loans $ 402,647 $ 566,927 Of the held-for-investment commercial loans shown above at December 31, 2015 and December 31, 2014 , $166 million and $195 million , respectively, were financed through the Commercial Securitization entity, and $135 million and $80 million were pledged as collateral under short-term borrowing arrangements. Commercial Loans Held-for-Sale at Fair Value Commercial loans held-for-sale include loans we have originated and intend to sell to third parties. At December 31, 2015 , we held four senior commercial mortgage loans at fair value, with an aggregate outstanding principal balance of $39 million and an aggregate fair value of $39 million . As of December 31, 2014 , there were 13 senior commercial mortgage loans at fair value, with an aggregate outstanding principal balance of $163 million and an aggregate fair value of $166 million . During the years ended December 31, 2015 and 2014 , we originated $618 million and $904 million (principal balance), respectively, of senior commercial loans for which we elected the fair value option and sold $741 million and $791 million (principal balance), respectively, of loans to third parties. During the years ended December 31, 2015 and 2014 , we recorded positive $10 million and positive $21 million , respectively, of valuation adjustments on senior commercial mortgage loans for which we elected the fair value option through mortgage banking and investment activities, net on our consolidated statements of income. At December 31, 2015 , all commercial loans held-for-sale were current and loans with a market value of $18 million were pledged as collateral under short-term borrowing arrangements. In February 2016, we discontinued commercial loan originations. Commercial Loans Held-for-Investment At Fair Value Commercial loans held-for-investment at fair value include senior mortgage loans for which we have elected the fair value option and have been split into senior A-notes and junior B-notes. Although the A-notes for each of the loans were sold, the transfers did not qualify for sale accounting treatment and we treated the sales as secured borrowings. At December 31, 2015 , we held three of these A/B notes with an aggregate outstanding principal balance of $67 million and an aggregate fair value of $68 million . At December 31, 2014 , we held three A/B notes, with an aggregate outstanding principal balance of $68 million and an aggregate fair value of $71 million . We carry the A-notes and associated secured commercial borrowings at the same fair values and the periodic valuation adjustments associated with these assets and liabilities offset through mortgage banking and investment activities, net on our consolidated statements of income. During the years ended December 31, 2015 and 2014 , there were no net changes in the fair value of the B-notes, in which we retain an actual economic interest. The carrying value of the B-notes at both December 31, 2015 and December 31, 2014 was $5 million . At Amortized Cost Commercial loans held-for-investment at amortized cost include loans we have originated and preferred equity investments we made or, in either case, acquired from third parties. As of December 31, 2015 , these loans primarily include mezzanine loans that are secured by a borrower’s ownership interest in a single purpose entity that owns commercial property, rather than a lien on the commercial property. The preferred equity investments are typically preferred equity interests in a single purpose entity that owns commercial property and are included within, and referred to herein, as commercial loans held-for-investment due to the fact that their risks and payment characteristics are nearly equivalent to commercial mezzanine loans. The following table provides additional information for our commercial loans held-for-investment at amortized cost at December 31, 2015 and December 31, 2014 . Table 7.2 – Carrying Value for Commercial Loans Held-for-Investment (In Thousands) December 31, 2015 December 31, 2014 Principal balance $ 307,047 $ 341,750 Unamortized discount, net (4,096 ) (4,862 ) Recorded investment 302,951 336,888 Allowance for loan losses (7,102 ) (7,457 ) Carrying Value $ 295,849 $ 329,431 At December 31, 2015 and December 31, 2014 , we held 59 and 60 , respectively, commercial loans held-for-investment at amortized cost. During the years ended December 31, 2015 and 2014 , we originated or acquired $22 million and $59 million , respectively, of commercial loans held-for-investment at amortized cost. During the years ended December 31, 2015 and December 31, 2014, we received repayments of $57 million and $71 million , respectively, and in connection with certain loan prepayments, we received $4 million and $2 million , respectively, of yield maintenance fees. Of the $303 million of recorded investment in commercial loans held-for-investment at December 31, 2015 , 7% was originated in 2015, 19% was originated in 2014, 16% was originated in 2013, 31% was originated in 2012, 23% was originated in 2011, and 4% was originated in 2010. Allowance for Loan Losses on Commercial Loans For commercial loans classified as held-for-investment, we establish and maintain an allowance for loan losses. The allowance includes a component for loans collectively evaluated for impairment and a component for loans individually evaluated for impairment. Our methodology for assessing the adequacy of the allowance for loan losses includes a formal review of each commercial loan in the portfolio and the assignment of an internal impairment status. Based on the assigned impairment status, a loan is categorized as “Pass,” “Watch List,” or “Workout.” The following table presents the principal balance of commercial loans held-for-investment by risk category. Table 7.3 – Principal Balance of Commercial Loans Held-for-Investment by Risk Category (In Thousands) December 31, 2015 December 31, 2014 Pass $ 272,768 $ 316,122 Watch list 34,279 25,628 Total Commercial Loans Held-for-Investment $ 307,047 $ 341,750 The following table summarizes the activity in the allowance for commercial loan losses for the years ended December 31, 2015 , 2014 , and 2013 . Table 7.4 – Activity in the Allowance for Commercial Loan Losses Years Ended December 31, (In Thousands) 2015 2014 2013 Balance at beginning of period $ 7,457 $ 7,373 4,084 Charge-offs, net — — — (Reversal of) provision for loan losses (355 ) 84 3,289 Balance at End of Period $ 7,102 $ 7,457 $ 7,373 At December 31, 2015 and December 31, 2014 , all of our commercial loans collectively evaluated for impairment were current. The following table summarizes the balances for loans collectively evaluated for impairment at December 31, 2015 and December 31, 2014 . Table 7.5 – Loans Collectively Evaluated for Impairment Review (In Thousands) December 31, 2015 December 31, 2014 Principal balance $ 307,047 $ 341,750 Recorded investment 302,951 336,888 Related allowance 7,102 7,457 Commercial Loans Individually Evaluated for Impairment We did not have any loans individually evaluated for impairment for either of the years ended December 31, 2015 or 2014 . Commercial Loan Characteristics The following table displays the geographic concentration of commercial loans recorded on our consolidated balance sheets at December 31, 2015 and 2014 . Table 7.6 – Geographic Concentration of Commercial Loans December 31, 2015 December 31, 2014 Geographic Concentration (by Principal) Held-for-Sale Held-for- Investment Held-for-Sale Held-for- Investment Nevada 45 % — % — % — % Virginia 26 % — % — % — % Florida 18 % 10 % — % 17 % Illinois 11 % — % — % — % California — % 22 % 6 % 19 % New York — % 19 % — % 18 % Michigan — % 10 % 18 % 8 % Washington, District of Columbia — % — % 25 % — % Colorado — % — % 17 % — % Connecticut — % — % 10 % — % Texas — % 5 % 9 % — % Maryland — % — % 7 % — % North Carolina — % — % — % 6 % Other states (none greater than 5%) — % 34 % 8 % 32 % Total 100 % 100 % 100 % 100 % The following table displays the loan product type and accompanying loan characteristics of commercial loans recorded on our consolidated balance sheets at December 31, 2015 and 2014 . Table 7.7 – Characteristics and Product Types of Commercial Loans December 31, 2015 (In Thousands) Loan Balance Number of Loans Interest Rate Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Held-for-Investment: Fixed-rate loans $ — to $ 5,000 40 9.50 % to 12.50 % 2016-08 - 2024-12 $ 109,973 $ — $ — $ 5,001 to $ 10,000 11 4.43 % to 11.00 % 2015-04 - 2025-01 87,510 — — $ 10,001 to $ 15,000 3 9.50 % to 9.50 % 2018-01 - 2021-06 42,374 — — $ 15,001 to $ 20,000 1 10.50 % to 11.00 % 2016-06 - 2022-06 20,000 — — $ 25,001 to $ 30,000 1 10.00 % 2016-10 25,405 — — 56 285,262 — — ARM loans: $ — to $ 5,000 1 11.20 % to 11.20 % 2016-11 - 2016-11 1,330 — — $ 5,001 to $ 10,000 1 12.00 % to 12.00 % 2015-02 - 2016-10 5,455 — — $ 10,001 to $ 15,000 1 9.16 % to 9.16 % 2014-11 - 2016-08 15,000 — — 3 21,785 — — Total Held-for-Investment 59 $ 307,047 $ — $ — Held-for-Investment, at Fair Value: Fixed-rate loans: $ — to $ 5,000 3 10.00 % to 10.00 % 2023-12 - 2024-04 $ 4,505 $ — $ — $ 10,001 to $ 15,000 1 4.95 % 2014-01 11,169 — — $ 20,001 to $ 25,000 1 4.83 % 2023-12 21,788 — — $ 25,001 to $ 30,000 1 4.79 % 2024-04 29,500 — — Total Held-for-Investment, at Fair Value 6 $ 66,962 $ — $ — Held-for-Sale Fixed-rate loans: $ — to $ 5,000 1 4.81 % to 4.81 % 2025-10 - 2025-10 $ 4,150 $ — $ — $ 5,001 to $ 10,000 2 5.05 % 5.05 % 2026-01 - 2026-01 16,900 — — $ 15,001 to $ 20,000 1 4.90 % 4.90 % 2025-12 - 2025-12 17,700 — — Total Held-for-Sale 4 $ 38,750 $ — $ — December 31, 2014 (In Thousands) Loan Balance Number of Loans Interest Rate Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Held-for-Investment: Fixed-rate loans $ — to $5,000 37 9.50 % to 12.50 % 2016-08 - 2024-12 $ 102,994 $ — $ — $ 5,001 to $10,000 14 4.43 % to 11.00 % 2015-04 - 2025-01 109,551 — — $ 10,001 to $15,000 2 9.50 % to 9.50 % 2018-01 - 2021-06 24,874 — — $ 15,001 to $20,000 2 10.50 % to 11.00 % 2016-06 - 2022-06 37,700 — — $ 25,001 to $30,000 1 10.00 % 2016-10 25,629 — — 56 300,748 — — ARM loans: $ 5,001 to $10,000 2 10.80 % to 12.00 % 2015-02 - 2016-10 15,478 — — $ 10,001 to $15,000 2 9.16 % to 11.20 % 2014-11 - 2016-08 25,524 — — 4 41,002 — — Total Held-for-Investment 60 $ 341,750 $ — $ — Held-for-Investment, at Fair Value: Fixed-rate loans: $ — to $5,000 3 10.00 % to 10.00 % 2023-12 - 2024-04 $ 4,555 $ — $ — $ 10,001 to $15,000 1 4.95 % 2024-01 11,399 — — $ 20,001 to $25,000 1 4.83 % 2023-12 22,102 — — $ 25,001 to $30,000 1 4.79 % 2024-04 29,500 — — Total Held-for-Investment, at Fair Value 6 $ 67,556 $ — $ — Held-for-Sale Fixed-rate loans: 13 4.19 % to 4.79 % 2024-12 - 2045-01 $ 162,790 $ — $ —

Real Estate Securities

Real Estate Securities	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Real Estate Securities	Real Estate Securities We invest in residential mortgage-backed securities. The following table presents the fair values of our real estate securities by type at December 31, 2015 and December 31, 2014 . Table 8.1 – Fair Values of Real Estate Securities by Type (In Thousands) December 31, 2015 December 31, 2014 Trading $ 404,011 $ 111,606 Available-for-sale 829,245 1,267,624 Total Real Estate Securities $ 1,233,256 $ 1,379,230 Our real estate securities are presented in accordance with their general position within a securitization structure based on their rights to cash flows. Senior securities are those interests in a securitization that generally have the first right to cash flows and are last in line to absorb losses. Re-REMIC securities, as presented herein, were created through the resecuritization of certain senior security interests to provide additional credit support to those interests. These re-REMIC securities are therefore subordinate to the remaining senior security interests, but senior to any subordinate tranches of the securitization from which they were created. Subordinate securities are all interests below senior and re-REMIC interests. Trading Securities The following table presents the fair value of trading securities by collateral type at December 31, 2015 and December 31, 2014 . Table 8.2 – Trading Securities by Collateral Type (In Thousands) December 31, 2015 December 31, 2014 Senior Securities Prime $ 248,570 $ 93,802 Non-prime 5,781 7,951 Total Senior Securities 254,351 101,753 Subordinate Securities Prime mezzanine (1) 136,140 — Prime subordinate (2) 13,520 9,853 Total Subordinate Securities 149,660 9,853 Total Trading Securities $ 404,011 $ 111,606 (1) Mezzanine includes securities initially rated AA, A and BBB- and issued in 2012 or later. (2) Subordinate securities includes less than $1 million of non-prime securities at both December 31, 2015 , and December 31, 2014 . We elected the fair value option for certain securities and classify them as trading securities. At December 31, 2015 , our trading securities included $37 million of senior interest-only securities, for which there is no principal balance, $218 million of other senior securities, and $149 million of subordinate securities. The unpaid principal balance of senior and subordinate securities classified as trading securities was $217 million and $168 million , respectively, at December 31, 2015 . During the year s ended December 31, 2015 and 2014 , we acquired $383 million and $80 million (principal balance), respectively, of senior and subordinate securities for which we elected the fair value option and classified as trading, and sold $18 million and $62 million , respectively, of such securities. During the year s ended December 31, 2015 and 2014 , we recorded negative $17 million and negative $24 million , respectively, of valuation adjustments on trading securities, included in mortgage banking and investment activities, net on our consolidated statements of income. As of December 31, 2015 , trading securities with a carrying value of $347 million were pledged as collateral under short-term borrowing agreements. See Note 12 for additional information on short-term debt. AFS Securities The following table presents the fair value of our available-for-sale securities by collateral type at December 31, 2015 and December 31, 2014 . Table 8.3 – Available-for-Sale Securities by Collateral Type (In Thousands) December 31, 2015 December 31, 2014 Senior Securities Prime $ 210,993 $ 307,813 Non-prime 68,258 179,744 Total Senior Securities 279,251 487,557 Re-REMIC Securities 165,064 168,347 Subordinate Securities Prime mezzanine (1) 220,141 448,838 Prime subordinate (2) 164,789 162,882 Total Subordinate Securities 384,930 611,720 Total AFS Securities $ 829,245 $ 1,267,624 Notes to Table 8.3 (1) Mezzanine includes securities initially rated AA, A and BBB- and issued in 2012 or later. (2) Subordinate securities includes less than $1 million of non-prime securities at both December 31, 2015 , and December 31, 2014 . The senior securities shown above at December 31, 2014 , included $105 million of prime securities and $117 million of non-prime securities that were financed through the Residential Resecuritization entity, as discussed in Note 4 . At December 31, 2015, we did not have any senior securities financed through the Residential Resecuritization entity. As of December 31, 2015 , AFS securities with a carrying value of $480 million were pledged as collateral under short-term borrowing agreements. See Note 12 for additional information on short-term debt. During the years ended December 31, 2015 and 2014 , we purchased $33 million and $237 million of AFS securities, respectively, and sold $366 million and $440 million of AFS securities, respectively, which resulted in net realized gains of $34 million and $12 million , respectively. We often purchase AFS securities at a discount to their outstanding principal balances. To the extent we purchase an AFS security that has a likelihood of incurring a loss, we do not amortize into income the portion of the purchase discount that we do not expect to collect due to the inherent credit risk of the security. We may also expense a portion of our investment in the security to the extent we believe that principal losses will exceed the purchase discount. We designate any amount of unpaid principal balance that we do not expect to receive and thus do not expect to earn or recover as a credit reserve on the security. Any remaining net unamortized discounts or premiums on the security are amortized into income over time using the effective yield method. At December 31, 2015 , there were $2 million of AFS securities with contractual maturities less than five years , no AFS securities with contractual maturities greater than five years but less than 10 years , and the remainder of our AFS securities had contractual maturities greater than 10 years . The following table presents the components of carrying value (which equals fair value) of AFS securities at December 31, 2015 and December 31, 2014 . Table 8.4 – Carrying Value of AFS Securities December 31, 2015 Senior (In Thousands) Prime Non-prime Re-REMIC Subordinate Total Principal balance $ 217,605 $ 75,591 $ 189,782 $ 490,249 $ 973,227 Credit reserve (1,305 ) (5,101 ) (10,332 ) (32,131 ) (48,869 ) Unamortized discount, net (22,079 ) (8,395 ) (71,670 ) (134,963 ) (237,107 ) Amortized cost 194,221 62,095 107,780 323,155 687,251 Gross unrealized gains 20,263 6,249 57,284 63,205 147,001 Gross unrealized losses (3,491 ) (86 ) — (1,430 ) (5,007 ) Carrying Value $ 210,993 $ 68,258 $ 165,064 $ 384,930 $ 829,245 December 31, 2014 Senior (In Thousands) Prime Non-prime Re-REMIC Subordinate Total Principal balance $ 311,573 $ 196,258 $ 195,098 $ 742,150 $ 1,445,079 Credit reserve (3,660 ) (9,644 ) (15,202 ) (41,561 ) (70,067 ) Unamortized discount, net (34,782 ) (31,491 ) (79,611 ) (150,458 ) (296,342 ) Amortized cost 273,131 155,123 100,285 550,131 1,078,670 Gross unrealized gains 35,980 24,682 68,062 63,026 191,750 Gross unrealized losses (1,298 ) (61 ) — (1,437 ) (2,796 ) Carrying Value $ 307,813 $ 179,744 $ 168,347 $ 611,720 $ 1,267,624 The following table presents the changes for the years ended December 31, 2015 and 2014 , in unamortized discount and designated credit reserves on residential AFS securities. Table 8.5 – Changes in Unamortized Discount and Designated Credit Reserves on AFS Securities Year Ended December 31, 2015 Year Ended December 31, 2014 Credit Unamortized Credit Unamortized (In Thousands) Beginning balance $ 70,067 $ 296,342 $ 116,870 $ 298,469 Amortization of net discount — (36,850 ) — (42,835 ) Realized credit losses (8,535 ) — (11,501 ) — Acquisitions 2,557 15,791 3,581 15,348 Sales, calls, other (7,296 ) (46,346 ) (2,555 ) (11,533 ) Impairments — 246 565 — Transfers to (release of) credit reserves, net (7,924 ) 7,924 (36,893 ) 36,893 Ending Balance $ 48,869 $ 237,107 $ 70,067 $ 296,342 AFS Securities with Unrealized Losses The following table presents the components comprising the total carrying value of residential AFS securities that were in a gross unrealized loss position at December 31, 2015 and December 31, 2014 . Table 8.6 – Gross Unrealized Losses on Residential AFS Securities Less Than 12 Consecutive Months 12 Consecutive Months or Longer Amortized Cost Unrealized Losses Fair Amortized Cost Unrealized Losses Fair (In Thousands) December 31, 2015 $ 87,718 $ (1,972 ) $ 85,746 $ 77,539 $ (3,035 ) $ 74,504 December 31, 2014 126,681 (1,374 ) 125,307 70,676 (1,422 ) 69,254 At December 31, 2015 , after giving effect to purchases, sales, and extinguishment due to credit losses, our consolidated balance sheet included 224 AFS securities, of which 32 were in an unrealized loss position and 15 were in a continuous unrealized loss position for 12 consecutive months or longer. At December 31, 2014 , our consolidated balance sheet included 290 AFS securities, of which 31 were in an unrealized loss position and 10 were in a continuous unrealized loss position for 12 consecutive months or longer. Evaluating AFS Securities for Other-than-Temporary Impairments Gross unrealized losses on our AFS securities were $5 million at December 31, 2015 . We evaluate all securities in an unrealized loss position to determine if the impairment is temporary or other-than-temporary (resulting in an OTTI). At December 31, 2015 , we did not intend to sell any of our AFS securities that were in an unrealized loss position, and it is more likely than not that we will not be required to sell these securities before recovery of their amortized cost basis, which may be at their maturity. We review our AFS securities that are in an unrealized loss position to identify those securities with losses that are other-than-temporary based on an assessment of changes in expected cash flows for such securities, which considers recent security performance and expected future performance of the underlying collateral. During the year ended December 31, 2015 , we recognized less than $1 million of OTTI losses related to our AFS securities. AFS securities for which OTTI is recognized have experienced, or are expected to experience, credit-related adverse cash flow changes. In determining our estimate of cash flows for AFS securities we may consider factors such as structural credit enhancement, past and expected future performance of underlying mortgage loans, including timing of expected future cash flows, which are informed by prepayment rates, default rates, loss severities, delinquency rates, percentage of non-performing loans, FICO scores at loan origination, year of origination, loan-to-value ratios, and geographic concentrations, as well as general market assessments. Changes in our evaluation of these factors impacted the cash flows expected to be collected at the OTTI assessment date and were used to determine if there were credit-related adverse cash flows and if so, the amount of credit related losses. Significant judgment is used in both our analysis of the expected cash flows for our AFS securities and any determination of the credit loss component of OTTI. The table below summarizes the significant valuation assumptions we used for our AFS securities in unrealized loss positions at December 31, 2015 . Table 8.7 – Significant Valuation Assumptions Range for Securities December 31, 2015 Prime Non-prime Prepayment rates 10 - 20 % 8 - 12 % Projected losses 0 - 9 % 5 - 6 % The following table details the activity related to the credit loss component of OTTI (i.e., OTTI recognized through earnings) for AFS securities held at December 31, 2015 , 2014 , and 2013 for which a portion of an OTTI was recognized in other comprehensive income. Table 8.8 – Activity of the Credit Component of Other-than-Temporary Impairments Years Ended December 31, (In Thousands) 2015 2014 2013 Balance at beginning of period $ 33,849 $ 37,149 $ 50,852 Additions Initial credit impairments 246 261 137 Subsequent credit impairments — 70 — Reductions Securities sold, or expected to sell (4,567 ) (922 ) (5,811 ) Securities with no outstanding principal at period end (1,251 ) (2,709 ) (8,029 ) Balance at End of Period $ 28,277 $ 33,849 $ 37,149 Gains and losses from the sale of AFS securities are recorded as realized gains, net, in our consolidated statements of income. The following table presents the gross realized gains and losses on sales and calls of AFS securities for the year s ended December 31, 2015 , 2014 , and 2013 . Table 8.9 – Gross Realized Gains and Losses on AFS Securities Years Ended December 31, (In Thousands) 2015 2014 2013 Gross realized gains - sales $ 34,922 $ 15,030 $ 24,613 Gross realized gains - calls 2,167 1,600 366 Gross realized losses - sales (608 ) (2,713 ) (214 ) Gross realized losses - calls (112 ) — — Total Realized Gains on Sales and Calls of AFS Securities, net $ 36,369 $ 13,917 $ 24,765

Mortgage Servicing Rights

Mortgage Servicing Rights	12 Months Ended
	Dec. 31, 2015
Transfers and Servicing [Abstract]
Mortgage Servicing Rights	Mortgage Servicing Rights We invest in mortgage servicing rights associated with residential mortgage loans and contract with licensed sub-servicers to perform all servicing functions for these loans. The following table presents the fair value of MSRs and the aggregate principal amounts of associated loans as of December 31, 2015 and December 31, 2014 . Table 9.1 – Fair Value of MSRs and Aggregate Principal Amounts of Associated Loans December 31, 2015 December 31, 2014 (In Thousands) MSR Fair Value Associated Principal MSR Fair Value Associated Principal Mortgage Servicing Rights Conforming Loans $ 133,838 $ 12,560,533 $ 81,301 $ 7,705,146 Jumbo Loans 58,138 5,705,939 57,992 5,962,784 Total Mortgage Servicing Rights $ 191,976 $ 18,266,472 $ 139,293 $ 13,667,930 The following table presents activity for MSRs for the years ended December 31, 2015 , 2014 , and 2013 . Table 9.2 – Activity for MSRs Years Ended December 31, (In Thousands) 2015 2014 2013 Balance at beginning of period $ 139,293 $ 64,824 $ 5,315 Additions 95,281 95,550 47,514 Sales (18,206 ) — — Changes in fair value due to: Changes in assumptions (1) (5,453 ) (12,467 ) 15,719 Other changes (2) (18,939 ) (8,614 ) (3,724 ) Balance at End of Period $ 191,976 $ 139,293 $ 64,824 (1) Primarily reflects changes in prepayment assumptions due to changes in market interest rates. (2) Represents changes due to realization of expected cash flows. We make investments in MSRs through the retention of servicing rights associated with the residential mortgage loans that we acquire and subsequently transfer to third parties or through the direct acquisition of MSRs sold by third parties. We hold our MSR investments at a taxable REIT subsidiary. The following table details the retention and purchase of MSRs during the years ended December 31, 2015 and 2014 . Table 9.3 – MSR Additions (In Thousands) December 31, 2015 December 31, 2014 MSR Fair Value Associated Principal MSR Fair Value Associated Principal Jumbo MSR additions: From securitization $ 8,202 $ 882,860 $ 8,518 $ 1,002,235 From loan sales 352 33,022 488 58,793 Total jumbo MSR additions 8,554 915,882 9,006 1,061,028 Conforming MSR additions: From loan sales 55,954 5,251,537 38,995 3,618,256 From purchases 30,773 2,952,345 47,549 3,993,387 Total conforming MSR additions 86,727 8,203,882 86,544 7,611,643 Total MSR Additions $ 95,281 $ 9,119,764 $ 95,550 $ 8,672,671 The following table presents the components of our MSR income. Table 9.4 – Components of MSR Income (Loss), net Years Ended December 31, (In Thousands) 2015 2014 2013 Servicing income Income $ 38,964 $ 19,362 $ 9,239 Cost of sub-servicer (5,079 ) (1,834 ) (925 ) Net servicing income 33,885 17,528 8,314 Market valuation changes of MSRs (24,392 ) (21,081 ) 11,995 Market valuation changes of associated derivatives (1) (12,708 ) — — MSR provision for repurchases (707 ) (708 ) — MSR Income (Loss), Net $ (3,922 ) $ (4,261 ) $ 20,309 (1) In the second quarter of 2015, we began to identify specific derivatives used to hedge the exposure of our MSRs to changes in market interest rates. See Note 2 for additional detail.

Derivative Financial Instrument

Derivative Financial Instruments	12 Months Ended
	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments The following table presents the fair value and notional amount of our derivative financial instruments at December 31, 2015 and December 31, 2014 . Table 10.1 – Fair Value and Notional Amount of Derivative Financial Instruments December 31, 2015 December 31, 2014 Fair Value Notional Amount Fair Value Notional Amount (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 2,590 $ 658,000 $ — $ — TBAs 2,734 1,028,500 6,654 1,074,000 Swaptions 5,191 925,000 7,006 575,000 Credit default index swaps 1,207 25,000 1,597 50,000 Assets - Other Derivatives Loan purchase commitments 4,671 764,161 1,160 288,467 Total Assets $ 16,393 $ 3,400,661 $ 16,417 $ 1,987,467 Liabilities - Cash Flow Hedges Interest rate swaps $ (48,232 ) $ 139,500 $ (46,845 ) $ 139,500 Liabilities - Risk Management Derivatives Interest rate swaps (10,134 ) 1,039,500 (1,328 ) 206,000 TBAs (2,519 ) 1,450,500 (9,506 ) 1,110,000 Futures (445 ) 78,000 (372 ) 90,000 Liabilities - Other Derivatives Loan purchase commitments (1,464 ) 375,815 (41 ) 27,324 Loan forward sale commitments — — (239 ) 102,793 Total Liabilities $ (62,794 ) $ 3,083,315 $ (58,331 ) $ 1,675,617 Total Derivative Financial Instruments, Net $ (46,401 ) $ 6,483,976 $ (41,914 ) $ 3,663,084 Risk Management Derivatives To manage, to varying degrees, risks associated with certain assets and liabilities on our consolidated balance sheet, we may enter into derivative contracts. At December 31, 2015 , we were party to swaps and swaptions with an aggregate notional amount of $2.62 billion , TBA contracts sold with an aggregate notional amount of $2.48 billion , and financial futures contracts with an aggregate notional amount of $78 million . At December 31, 2014 , we were party to swaps and swaptions with an aggregate notional amount of $920 million , TBA contracts sold with an aggregate notional amount of $2.18 billion , and financial futures contracts with an aggregate notional amount of $90 million . Net market valuation adjustments on risk management derivatives were negative $65 million , negative $39 million , and positive $51 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. These net market valuation adjustments are recorded in mortgage banking and investment activities, net and MSR income (loss), net on our consolidated statements of income. Loan Purchase and Forward Sale Commitments LPCs and FSCs that qualify as derivatives are recorded at their estimated fair values. Net valuation adjustments on LPCs and FSCs were positive $50 million , positive $14 million , and less than negative $1 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively, and are recorded in mortgage banking and investment activities, net on our consolidated statements of income. Derivatives Designated as Cash Flow Hedges To manage the variability in interest expense related to our long-term debt, we designated certain interest rate swaps as cash flow hedges with an aggregate notional balance of $140 million . For the years ended December 31, 2015 , 2014 , and 2013 , changes in the values of designated cash flow hedges were negative $1 million , negative $30 million , and positive $32 million , respectively. For interest rate agreements currently or previously designated as cash flow hedges, our total unrealized loss reported in accumulated other comprehensive income was $47 million and $46 million at December 31, 2015 and December 31, 2014 , respectively. For the years ended December 31, 2015 , 2014 , and 2013 , we reclassified less than $1 million of unrealized losses on derivatives to interest expense. Accumulated other comprehensive loss of less than $1 million will be amortized into interest expense, a component of our consolidated income statements, over the remaining life of the hedge liabilities. The following table illustrates the impact on interest expense of our interest rate agreements accounted for as cash flow hedges for the years ended December 31, 2015 , 2014 , and 2013 . Table 10.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Years Ended December 31, (In Thousands) 2015 2014 2013 Net interest expense on cash flows hedges $ (5,883 ) $ (5,951 ) $ (5,889 ) Realized expense due to ineffective portion of cash flow hedges — — — Realized net losses reclassified from other comprehensive income (95 ) (164 ) (281 ) Total Interest Expense $ (5,978 ) $ (6,115 ) $ (6,170 ) Derivative Counterparty Credit Risk We incur credit risk to the extent that counterparties to our derivative financial instruments do not perform their obligations under specified contractual agreements. If a derivative counterparty does not perform, we may not receive the proceeds to which we may be entitled under these agreements. Each of our derivative counterparties that is not a clearinghouse must maintain compliance with International Swaps and Derivatives Association (“ISDA”) agreements or other similar agreements (or receive a waiver of non-compliance after a specific assessment) in order to conduct derivative transactions with us. Additionally, we review non-clearinghouse derivative counterparty credit standings, and in the case of a deterioration of creditworthiness, appropriate remedial action is taken. To further mitigate counterparty risk, we exit derivatives contracts with counterparties that (i) do not maintain compliance with (or obtain a waiver from) the terms of their ISDA or other agreements with us; or (ii) do not meet internally established guidelines regarding creditworthiness. Our ISDA and similar agreements currently require full bilateral collateralization of unrealized loss exposures with our derivative counterparties. Through a margin posting process, our positions are revalued with counterparties each business day and cash margin is generally transferred to either us or our derivative counterparties as collateral based upon the directional changes in fair value of the positions. We also attempt to transact with several different counterparties in order to reduce our specific counterparty exposure. With respect to certain of our derivatives, clearing and settlement is through one or more clearinghouses, which may be substituted as a counterparty. Clearing and settlement of derivative transactions through a clearinghouse is also intended to reduce specific counterparty exposure. We consider counterparty risk as part of our fair value assessments of all derivative financial instruments. At December 31, 2015 , we assessed this risk as remote and did not record a specific valuation adjustment. At December 31, 2015 , we had outstanding derivative agreements with six counterparties (other than clearinghouses) and were in compliance with ISDA agreements governing our open derivative positions.

Other Assets and Liabilities

Other Assets and Liabilities	12 Months Ended
	Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets and Liabilities	Other Assets and Liabilities Other assets at December 31, 2015 and December 31, 2014 , are summarized in the following table. Table 11.1 – Components of Other Assets (In Thousands) December 31, 2015 December 31, 2014 Margin receivable $ 83,191 $ 65,374 Pledged collateral 53,600 9,927 FHLBC stock 34,437 10,688 Guarantee asset 5,697 7,201 Fixed assets and leasehold improvements (1) 4,117 3,008 REO 4,896 4,391 Investment receivable 3,870 1,103 Prepaid expenses 3,640 3,372 Deposits — 5,000 Other 4,438 3,832 Total Other Assets $ 197,886 $ 113,896 (1) Fixed assets and leasehold improvements have a basis of $6 million and accumulated depreciation of $2 million at December 31, 2015 . Accrued expenses and other liabilities at December 31, 2015 and December 31, 2014 are summarized in the following table. Table 11.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) December 31, 2015 December 31, 2014 Accrued compensation $ 17,527 $ 19,273 Guarantee obligations 22,704 7,201 Margin payable 6,415 6,455 Residential loan and MSR repurchase reserve 6,403 3,724 Current accounts payable 4,764 2,112 Legal reserve 2,000 2,000 Accrued operating expenses 1,845 3,334 Other 8,239 8,145 Total Other Liabilities $ 69,897 $ 52,244 Margin Receivable and Payable Margin receivable and payable resulted from margin calls between us and our derivatives, master repurchase agreements, and warehouse facilities counterparties, whereby we or the counterparty were required to post collateral. Guarantee Asset, Pledged Collateral, and Guarantee Obligations The pledged collateral, guarantee asset, and guarantee obligations presented in the tables above are related to the risk sharing arrangements we entered into with Fannie Mae and Freddie Mac. In accordance with certain of these arrangements we are required to pledge collateral to secure potential risk-sharing obligations to Fannie Mae and Freddie Mac. Based on our deliveries of loans through December 31, 2015, we were over-collateralized by approximately $18 million. In January 2016 we announced we will discontinue the acquisition and aggregation of conforming loans for resale to the Agencies. Pursuant to the terms of these arrangements, we expect to receive a significant portion of this collateral back in the first quarter of 2016. See Note 3 and Note 15 for additional information on our risk sharing arrangements. Investment Receivable and Unsettled Trades In accordance with our policy to record purchases and sales of securities on the trade date, if the trade and settlement of a purchase or sale crosses over a quarterly reporting period, we will record an investment receivable for sales and an unsettled trades liability for purchases. REO The carrying value of REO at December 31, 2015 , was $5 million , which includes the net effect of $9 million related to transfers into REO during the year ended December 31, 2015 , offset by $4 million of REO liquidations and $4 million of negative market valuation adjustments. At December 31, 2015 and December 31, 2014 , there were 23 and 22 REO properties, respectively, recorded on our consolidated balance sheets, all of which were owned at consolidated Sequoia entities. See Note 15 for additional information on the legal and residential repurchase reserves.

Short-Term Debt

Short-Term Debt	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Short-Term Debt	Short-Term Debt We enter into repurchase agreements, bank warehouse agreements, and other forms of collateralized (and generally uncommitted) short-term borrowings with several banks and major investment banking firms. At December 31, 2015 , we had outstanding agreements with several counterparties and we were in compliance with all of the related covenants. Further information about these financial covenants and our short-term debt, see Part II, Item 7 of this Annual Report on Form 10-K under the heading “ Risks Relating to Debt Incurred Under Short- and Long-Term Borrowing Facilities. ” The table below summarizes the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information of the short-term debt at December 31, 2015 and December 31, 2014 by the type of collateral securing the debt. Table 12.1 – Short-Term Debt by Collateral Type December 31, 2015 (Dollars in Thousands) Number of Facilities Outstanding Limit Weighted Average Interest Rate Maturity Weighted Average Days Until Maturity Collateral Type Held-for-sale residential loans 4 $ 950,022 $ 1,400,000 1.90 % 2/2016-12/2016 182 Held-for-investment residential loans (1) 1 137,622 — 0.21 % 7/2016-11/2016 204 Commercial loans 2 73,718 300,000 4.13 % 4/2016-10/2016 265 Real estate securities 9 693,641 — 1.47 % 1/2016-3/2016 24 Total 16 $ 1,855,003 (1) Amount represents the portion of our borrowings from the FHLBC that were due within 12 months as of December 31, 2015 . See Note 14 for additional information on our FHLB-member subsidiary's borrowing agreement with the FHLBC. December 31, 2014 (Dollars in Thousands) Number of Facilities Outstanding Limit Weighted Average Interest Rate Maturity Weighted Average Days Until Maturity Collateral Type Held-for-sale residential loans 5 $ 1,076,188 $ 1,550,000 1.74 % 2/2015-12/2015 156 Commercial loans 3 109,128 400,000 3.66 % 4/2015-10/2016 185 Real estate securities 9 608,509 — 1.38 % 1/2015-3/2015 20 Total 17 $ 1,793,825 Borrowings under these facilities are generally charged interest based on a specified margin over the one-month LIBOR interest rate. At December 31, 2015 , all of these borrowings were under uncommitted facilities and were due within 364 days (or less) of the borrowing date. The fair value of held-for-sale residential loans, commercial loans, and real estate securities pledged as collateral was $1.07 billion , $152 million , and $827 million , respectively, at December 31, 2015 and $1.22 billion , $161 million , and $762 million , respectively, at December 31, 2014 . For the years ended December 31, 2015 and 2014 , the average balance of short-term debt was $1.67 billion and $1.52 billion , respectively. At both December 31, 2015 and December 31, 2014 , accrued interest payable on short-term debt was $2 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 in excess of $11 million at December 31, 2015 . At both December 31, 2015 and December 31, 2014 , we had no outstanding borrowings under this facility. Remaining Maturities of Short-Term Debt The following table presents the remaining maturities of short-term debt at December 31, 2015 . Table 12.2 – Short-Term Debt by Collateral Type and Remaining Maturities December 31, 2015 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for sale residential loans $ — $ 351,703 $ 598,319 $ 950,022 Held-for-investment residential loans — — 137,622 137,622 Commercial loans — — 73,718 73,718 Real estate securities 606,612 87,029 — 693,641 Total Short-Term Debt $ 606,612 $ 438,732 $ 809,659 $ 1,855,003

Asset-Backed Securities Issued

Asset-Backed Securities Issued	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Asset-Backed Securities Issued	Asset-Backed Securities Issued Through our Sequoia securitization program, we sponsor securitization transactions in which ABS backed by residential mortgage loans are issued by Sequoia entities. ABS were also issued by securitization entities in the Residential Resecuritization and the Commercial Securitization. Each securitization entity is independent of Redwood and of each other and the assets and liabilities are not owned by and are not legal obligations of Redwood. Our exposure to these entities is primarily through the financial interests we have retained, although we are exposed to certain financial risks associated with our role as a sponsor or depositor of these entities or as a result of our having sold assets directly or indirectly to these entities. As a general matter, ABS have been issued by these securitization entities to fund the acquisition of assets from us or from third parties. The ABS issued by these entities consist of various classes of securities that pay interest on a monthly or quarterly basis. Substantially all ABS issued pay variable rates of interest, which are indexed to one-, three-, or six-month LIBOR. Some ABS issued pay fixed rates of interest or pay hybrid rates, which are fixed rates that subsequently adjust to variable rates. ABS issued also includes some interest-only classes with coupons set at a fixed rate or a fixed spread to a benchmark rate, or set at a spread to the interest rates earned on the assets less the interest rates paid on the liabilities of a securitization entity. The carrying values of ABS issued by consolidated securitization entities we sponsored at December 31, 2015 and December 31, 2014 , along with other selected information, are summarized in the following table. Table 13.1 – Asset-Backed Securities Issued December 31, 2015 (Dollars in Thousands) Sequoia Residential Resecuritization Commercial Securitization Total Certificates with principal balance $ 1,108,785 $ — $ 53,137 $ 1,161,922 Interest-only certificates 4,672 — — 4,672 Market valuation adjustments (1) (116,637 ) — — (116,637 ) Total ABS Issued $ 996,820 $ — $ 53,137 $ 1,049,957 Range of weighted average interest rates, by series 0.41% to 2.21% — % 5.62 % Stated maturities 2017 - 2037 — 2018 Number of series 21 — 1 (1) Upon adoption of ASU 2014-13 on January 1, 2015, we began to account for ABS issued by consolidated Sequoia entities at fair value. See Note 3 for additional information. December 31, 2014 (Dollars in Thousands) Sequoia Residential Resecuritization Commercial Securitization Total Certificates with principal balance $ 1,427,056 $ 45,044 $ 83,313 $ 1,555,413 Interest-only certificates 2,079 — — 2,079 Unamortized discount (12,373 ) — — (12,373 ) Total ABS Issued $ 1,416,762 $ 45,044 $ 83,313 $ 1,545,119 Range of weighted average interest rates, by series 0.36% to 4.27% 2.16 % 5.62 % Stated maturities 2014 - 2041 2046 2018 Number of series 24 1 1 We consolidated the assets and liabilities of an entity formed in connection with our Residential Resecuritization from its creation in 2011 through the fourth quarter of 2015, when the debt of the entity was repaid, the assets of the entity were distributed to us, and the entity was dissolved. In addition, during the fourth quarter of 2015, we exercised our rights to call three Sequoia securitization entities, whereby we purchased the loans remaining in each securitization at par, repaid the outstanding debt, and dissolved the entities. The actual maturity of each class of ABS issued is primarily determined by the rate of principal prepayments on the assets of the issuing entity. Each series is also subject to redemption prior to the stated maturity according to the terms of the respective governing documents of each ABS issuing entity. As a result, the actual maturity of ABS issued may occur earlier than its stated maturity. At December 31, 2015 , $1.04 billion of ABS issued ( $1.15 billion principal balance) had contractual maturities after five years . Amortization of Commercial Securitization and Residential Resecuritization deferred ABS issuance costs were $1 million , $2 million , and $3 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. The following table summarizes the accrued interest payable on ABS issued at December 31, 2015 and December 31, 2014 . Interest due on consolidated ABS issued is payable monthly. Table 13.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) December 31, 2015 December 31, 2014 Sequoia $ 555 $ 976 Residential Resecuritization — 5 Commercial Securitization 249 390 Total Accrued Interest Payable on ABS Issued $ 804 $ 1,371 The following table summarizes the carrying value components of the collateral for ABS issued and outstanding at December 31, 2015 and December 31, 2014 . Table 13.3 – Collateral for Asset-Backed Securities Issued December 31, 2015 (In Thousands) Sequoia Residential Resecuritization Commercial Securitization Total Residential loans $ 1,021,870 $ — $ — $ 1,021,870 Commercial loans — — 166,016 166,016 Real estate securities — — — — Restricted cash 228 — 137 365 Accrued interest receivable 1,131 — 1,297 2,428 REO 4,895 — — 4,895 Total Collateral for ABS Issued $ 1,028,124 $ — $ 167,450 $ 1,195,574 December 31, 2014 (In Thousands) Sequoia Residential Resecuritization Commercial Securitization Total Residential loans $ 1,474,386 $ — $ — $ 1,474,386 Commercial loans — — 194,991 194,991 Real estate securities — 221,676 — 221,676 Restricted cash 147 43 137 327 Accrued interest receivable 2,359 477 1,511 4,347 REO 4,391 — — 4,391 Total Collateral for ABS Issued $ 1,481,283 $ 222,196 $ 196,639 $ 1,900,118

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt FHLBC Borrowings In July 2014, our FHLB-member subsidiary entered into a borrowing agreement with the Federal Home Loan Bank of Chicago. As of December 31, 2015 , under this agreement, our subsidiary could incur borrowings up to $2.00 billion , also referred to as “advances,” from the FHLBC secured by eligible collateral, including, but not limited to residential mortgage loans and residential mortgage-backed securities. This borrowing agreement is uncommitted, which means that any request made to borrow funds may be declined for any reason, even if at the time of the borrowing request the then-outstanding borrowings are less than the borrowing limits under this agreement. During the year ended December 31, 2015 , our FHLB-member subsidiary borrowed an additional $985 million under this agreement. At December 31, 2015 , $1.48 billion of advances were outstanding under this agreement, of which $1.34 billion were classified as long-term debt, with a weighted average interest rate of 0.46% and a weighted average maturity of nine years. At December 31, 2014, $496 million of advances were outstanding under this agreement. Advances under this agreement incur interest charges based on a specified margin over the FHLBC’s 13 -week discount note rate, which resets every 13 weeks. Total advances under this agreement were secured by residential mortgage loans with a fair value of $1.68 billion at December 31, 2015 . This agreement also requires our subsidiary to purchase and hold stock in the FHLBC in an amount equal to a specified percentage of outstanding advances. At December 31, 2015 , our subsidiary held $34 million of FHLBC stock that is included in other assets in our consolidated balance sheets. The following table presents maturities of our long-term portion of FHLBC borrowings by year at December 31, 2015 . Table 14.1 – Maturities of Long-Term Portion of FHLBC Borrowings by Year (In Thousands) December 31, 2015 2017 $ 89,208 2024 470,171 2025 783,644 Total Long-Term FHLBC Borrowings $ 1,343,023 For additional discussion of our FHLBC borrowings, see Part II, Item 7 of this Annual Report on Form 10-K under the heading “ Risks Relating to Debt Incurred Under Short- and Long-Term Borrowing Facilities. ” Commercial Secured Borrowings At December 31, 2015 , we had commercial secured borrowings of $63 million resulting from transfers of portions of senior commercial mortgage loans to third parties that did not meet the criteria for sale treatment under GAAP and were accounted for as financings. We bifurcated certain of our senior commercial mortgage loans into a senior portion that was sold to a third party and a junior portion that we retained as an investment. Although GAAP requires us to record a secured borrowing liability when we receive cash from selling the senior portion of the loan, the liability has no economic substance to us in that it does not require periodic interest payments and has no maturity. For each commercial secured borrowing, at such time that the associated senior portion of the loan is repaid or we sell our retained junior portion, the secured borrowing liability and associated senior portion of the loan would be derecognized from our balance sheet. Convertible Notes In November 2014, RWT Holdings, Inc., a wholly-owned subsidiary of Redwood Trust, Inc., issued $205 million principal amount of 5.625% exchangeable senior notes due 2019 . These exchangeable notes require semi-annual interest payments at a fixed coupon rate of 5.625% until maturity or exchange, which will be no later than November 15, 2019 . After deducting the underwriting discount and offering costs, we received $198 million of net proceeds. Including amortization of deferred securities issuance costs, the interest expense yield on these exchangeable notes was 6.59% for the year ended December 31, 2015 . At December 31, 2015 , the accrued interest payable balance on this debt was $2 million and the unamortized deferred issuance costs were $5 million . At December 31, 2015 , these notes were exchangeable at the option of the holder at an exchange rate of 46.1798 common shares per $1,000 principal amount of exchangeable senior notes (equivalent to an exchange price of $21.65 per common share). Upon exchange of these notes by a holder, the holder will receive shares of our common stock. In March 2013, we issued $288 million principal amount of 4.625% convertible senior notes due 2018 . These convertible notes require semi-annual interest payments at a fixed coupon rate of 4.625% until maturity or conversion, which will be no later than April 15, 2018 . After deducting the underwriting discount and offering costs, we received $279 million of net proceeds. Including amortization of deferred securities issuance costs, the interest expense yield on these convertible notes was 5.42% for the year ended December 31, 2015 . At December 31, 2015 , the accrued interest payable balance on this debt was $3 million and the unamortized deferred issuance costs were $4 million . At December 31, 2015 , these notes were convertible at the option of the holder at a conversion rate of 41.1320 common shares per $1,000 principal amount of convertible senior notes (equivalent to a conversion price of $24.31 per common share). Upon conversion of these notes by a holder, the holder will receive shares of our common stock. Trust Preferred Securities and Subordinated Notes At December 31, 2015 , we had trust preferred securities and subordinated notes outstanding of $100 million and $40 million , respectively. The interest expense yield on both our trust preferred securities and subordinated notes was 2.62% and 2.58% for the years ended December 31, 2015 and 2014 , respectively. Including hedging costs and amortization of deferred securities issuance costs, the interest expense yield on both our trust preferred securities and subordinated notes was 6.87% and 6.88% for the years ended December 31, 2015 and 2014 , respectively. At both December 31, 2015 and December 31, 2014 , the accrued interest payable balance on our trust preferred securities and subordinated notes was less than $1 million . Under the terms of this debt, we covenant, among other things, to use our best efforts to continue to qualify as a REIT. If an event of default were to occur in respect of this debt, we would generally be restricted under its terms (subject to certain exceptions) from making dividend distributions to stockholders, from repurchasing common stock or repurchasing or redeeming any other then-outstanding equity securities, and from making any other payments in respect of any equity interests in us or in respect of any then-outstanding debt that is pari passu or subordinate to this debt.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Commitments At December 31, 2015 , we were obligated under nine non-cancelable operating leases with expiration dates through 2021 for $10 million of cumulative lease payments. Operating lease expense was $3 million , $3 million , and $2 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. The following table presents our future lease commitments at December 31, 2015 . Table 15.1 – Future Lease Commitments by Year (In Thousands) December 31, 2015 2016 $ 2,864 2017 2,880 2018 1,827 2019 1,189 2020 1,127 2021 and thereafter 367 Total Lease Commitments $ 10,254 Leasehold improvements for our offices are amortized into expense over the lease term. There were less than $1 million of unamortized leasehold improvements at December 31, 2015 . For each of the years ended December 31, 2015 , 2014 , and 2013 , we recognized less than $1 million of leasehold amortization expense. Loss Contingencies — Risk Sharing At December 31, 2015 , we had sold conforming loans to the Agencies with an original unpaid principal balance of $2.91 billion , subject to our risk sharing arrangements with the Agencies. At December 31, 2015 , the maximum potential amount of future payments we could be required to make under these arrangements was $39 million and this amount was fully collateralized by assets we transferred to custodial accounts and is presented as pledged collateral in other assets on our consolidated balance sheets. We have no recourse to any third parties that would allow us to recover any amounts related to our obligations under the arrangements. As of December 31, 2015 , we had not incurred any losses under these arrangements. For the year ended December 31, 2015 , other income related to these arrangements was $3 million and market valuation changes were negative $2 million . All of the loans in the reference pools subject to these risk sharing arrangements were originated in 2014 and 2015, and at December 31, 2015 , the loans had an unpaid principal balance of $2.71 billion and a weighted average FICO score of 758 (at origination) and LTV of 76% (at origination). At December 31, 2015 , $11 million of the outstanding principal balance was 30 days or more delinquent, $1 million of the loans were 90 days or more delinquent, and $1 million of loans were in foreclosure. See Note 3 for additional information on our risk sharing arrangements. Loss Contingencies — Residential Repurchase Reserve We maintain a repurchase reserve for potential obligations arising from representation and warranty violations related to residential loans we have sold to securitization trusts or third parties and for conforming residential loans associated with MSRs that we have purchased from third parties. We do not originate residential loans and we believe the initial risk of loss due to loan repurchases (i.e., due to a breach of representations and warranties) would generally be a contingency to the companies from whom we acquired the loans. However, in some cases, for example, where loans were acquired from companies that have since become insolvent, repurchase claims may result in our being liable for a repurchase obligation. At December 31, 2015 and December 31, 2014 , our repurchase reserve associated with our residential loans and MSRs was $6 million and $4 million , respectively, and was recorded in accrued expenses and other liabilities on our consolidated balance sheets. We received 79 repurchase requests during the year ended December 31, 2015 and none during the year ended December 31, 2014 . We did not repurchase any loans for the years ended December 31, 2015 and 2013. During the year ended December 31, 2014 , we repurchased one loan, for which we charged $61 thousand to the repurchase reserve. During the years ended December 31, 2015 , 2014 , and 2013 we recorded repurchase provisions of $3 million , $2 million , and $2 million , respectively, that were recorded in mortgage banking and investment activities, net and MSR income (loss), net on our consolidated statements of income and did not charge-off any amounts to the reserve in either period. Loss Contingencies — Litigation On or about December 23, 2009, the Federal Home Loan Bank of Seattle (the “FHLB-Seattle”) filed a complaint in the Superior Court for the State of Washington (case number 09-2-46348-4 SEA) against Redwood Trust, Inc., our subsidiary, Sequoia Residential Funding, Inc. (“SRF”), Morgan Stanley & Co., and Morgan Stanley Capital I, Inc. (collectively, the “FHLB-Seattle Defendants”) alleging that the FHLB-Seattle Defendants made false or misleading statements in offering materials for a mortgage pass-through certificate (the “Seattle Certificate”) issued in the Sequoia Mortgage Trust 2005-4 securitization transaction (the “2005-4 RMBS”) and purchased by the FHLB-Seattle. Specifically, the complaint alleges that the alleged misstatements concern the (1) loan-to-value ratio of mortgage loans and the appraisals of the properties that secured loans supporting the 2005-4 RMBS, (2) occupancy status of the properties, (3) standards used to underwrite the loans, and (4) ratings assigned to the Seattle Certificate. The FHLB-Seattle alleges claims under the Securities Act of Washington (Section 21.20.005, et seq.) and seeks to rescind the purchase of the Seattle Certificate and to collect interest on the original purchase price at the statutory interest rate of 8% per annum from the date of original purchase (net of interest received) as well as attorneys’ fees and costs. The Seattle Certificate was issued with an original principal amount of approximately $133 million , and, as of December 31, 2015 , the FHLB-Seattle has received approximately $120 million of principal and $11 million of interest payments in respect of the Seattle Certificate. The claims were subsequently dismissed for lack of personal jurisdiction as to Redwood Trust and SRF. Redwood agreed to indemnify the underwriters of the 2005-4 RMBS for certain losses and expenses they might incur as a result of claims made against them relating to this RMBS, including, without limitation, certain legal expenses. The FHLB-Seattle’s claims against the underwriters of this RMBS were not dismissed and remain pending. Regardless of the outcome of this litigation, we could incur a loss as a result of these indemnities. On or about July 15, 2010, The Charles Schwab Corporation (“Schwab”) filed a complaint in the Superior Court for the State of California in San Francisco (case number CGC-10-501610) against SRF and 26 other defendants (collectively, the “Schwab Defendants”) alleging that the Schwab Defendants made false or misleading statements in offering materials for various residential mortgage-backed securities sold or issued by the Schwab Defendants. Schwab alleged only a claim for negligent misrepresentation under California state law against SRF and sought unspecified damages and attorneys’ fees and costs from SRF. Schwab claims that SRF made false or misleading statements in offering materials for a mortgage pass-through certificate (the “Schwab Certificate”) issued in the 2005-4 RMBS and purchased by Schwab. Specifically, the complaint alleges that the misstatements for the 2005-4 RMBS concern the (1) loan-to-value ratio of mortgage loans and the appraisals of the properties that secured loans supporting the 2005-4 RMBS, (2) occupancy status of the properties, (3) standards used to underwrite the loans, and (4) ratings assigned to the Schwab Certificate. On November 14, 2014, Schwab voluntarily dismissed with prejudice its negligent misrepresentation claim, which resulted in the dismissal with prejudice of SRF from the action. The Schwab Certificate was issued with an original principal amount of approximately $15 million , and, as of December 31, 2015 , approximately $13 million of principal and $1 million of interest payments have been made in respect of the Schwab Certificate. We agreed to indemnify the underwriters of the 2005-4 RMBS, which underwriters were also named and remain as defendants in the action, for certain losses and expenses they might incur as a result of claims made against them relating to this RMBS, including, without limitation, certain legal expenses. Regardless of the outcome of this litigation, Redwood could incur a loss as a result of these indemnities. In accordance with GAAP, we review the need for any loss contingency reserves and establish reserves when, in the opinion of management, it is probable that a matter would result in a liability and the amount of loss, if any, can be reasonably estimated. Additionally, we record receivables for insurance recoveries relating to litigation-related losses and expenses if and when such amounts are covered by insurance and recovery of such losses or expenses are due. At December 31, 2015 , the aggregate amount of loss contingency reserves established in respect of the FHLB-Seattle and Schwab litigation matters described above was $2 million . We review our litigation matters each quarter to assess these loss contingency reserves and make adjustments in these reserves, upwards or downwards, as appropriate, in accordance with GAAP based on our review. In the ordinary course of any litigation matter, including certain of the above-referenced matters, we have engaged and may continue to engage in formal or informal settlement communications with the plaintiffs. Settlement communications we have engaged in relating to certain of the above-referenced litigation matters are one of the factors that have resulted in our determination to establish the loss contingency reserves described above. We cannot be certain that any of these matters will be resolved through a settlement prior to trial and we cannot be certain that the resolution of these matters, whether through trial or settlement, will not have a material adverse effect on our financial condition or results of operations in any future period. Future developments (including resolution of substantive pre-trial motions relating to these matters, receipt of additional information and documents relating to these matters (such as through pre-trial discovery), new or additional settlement communications with plaintiffs relating to these matters, or resolutions of similar claims against other defendants in these matters) could result in our concluding in the future to establish additional loss contingency reserves or to disclose an estimate of reasonably possible losses in excess of our established reserves with respect to these matters. Our actual losses with respect to the above-referenced litigation matters may be materially higher than the aggregate amount of loss contingency reserves we have established in respect of these litigation matters, including in the event that any of these matters proceeds to trial and the plaintiff prevails. Other factors that could result in our concluding to establish additional loss contingency reserves or estimate additional reasonably possible losses, or could result in our actual losses with respect to the above-referenced litigation matters being materially higher than the aggregate amount of loss contingency reserves we have established in respect of these litigation matters include that: there are significant factual and legal issues to be resolved; information obtained or rulings made during the lawsuits could affect the methodology for calculation of the available remedies; and we may have additional obligations pursuant to indemnity agreements, representations and warranties, and other contractual provisions with other parties relating to these litigation matters that could increase our potential losses.

Equity

Equity	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Equity	Equity The following table provides a summary of changes in accumulated other comprehensive income by component for the years ended December 31, 2015 and 2014 . Table 16.1 – Changes in Accumulated Other Comprehensive Income by Component Years Ended December 31, 2015 2014 (In Thousands) Net Unrealized Gains on Available-for-Sale Securities Net Unrealized Losses on Interest Rate Agreements Accounted for as Cash Flow Hedges Net Unrealized Gains on Available-for-Sale Securities Net Unrealized Losses on Interest Rate Agreements Accounted for as Cash Flow Hedges Balance at beginning of period $ 186,737 $ (46,049 ) $ 164,654 $ (15,888 ) Other comprehensive income (loss) (17,955 ) (1,409 ) 32,635 (30,325 ) Amounts reclassified from other (29,426 ) 95 (10,552 ) 164 Net current-period other comprehensive income (loss) (47,381 ) (1,314 ) 22,083 (30,161 ) Balance at End of Period $ 139,356 $ (47,363 ) $ 186,737 $ (46,049 ) The following table provides a summary of reclassifications out of accumulated other comprehensive income for the years ended December 31, 2015 and 2014 . Table 16.2 – Reclassifications Out of Accumulated Other Comprehensive Income Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Years Ended December 31, (In Thousands) Income Statement 2015 2014 Net realized (gain) loss on AFS securities Other than temporary impairment (1) Mortgage banking and investment activities, net $ 246 $ 565 Gain on sale of AFS securities Realized gains, net (29,672 ) (11,117 ) $ (29,426 ) $ (10,552 ) Net realized loss on interest rate Amortization of deferred loss Interest expense $ 95 $ 164 $ 95 $ 164 (1) For the year ended December 31, 2015 , other-than-temporary impairments were $419 , of which $246 were recognized through the Income Statement and $173 were recognized in Accumulated Other Comprehensive Income. For the year ended December 31, 2014 , other-than-temporary impairments were $4,774 , of which $565 were recognized through the Income Statement, and $4,209 were recognized in Accumulated Other Comprehensive Income. Earnings Per Common Share The following table provides the basic and diluted earnings per common share computations for the years ended December 31, 2015 , 2014 , and 2013 . Table 16.3 – Basic and Diluted Earnings Per Common Share Years Ended December 31, (In Thousands, Except Share Data) 2015 2014 2013 Basic Earnings Per Common Share: Net income attributable to Redwood $ 102,088 $ 100,569 $ 173,246 Less: Dividends and undistributed earnings allocated to participating securities (2,806 ) (2,612 ) (4,899 ) Net income allocated to common shareholders $ 99,282 $ 97,957 $ 168,347 Basic weighted average common shares outstanding 82,945,103 82,837,369 81,985,897 Basic Earnings Per Common Share $ 1.20 $ 1.18 $ 2.05 Diluted Earnings Per Common Share: Net income attributable to Redwood $ 102,088 $ 100,569 $ 173,246 Less: Dividends and undistributed earnings allocated to participating securities (2,677 ) (2,524 ) (3,726 ) Add back: Interest expense on convertible notes for the period, net of tax — — 12,641 Net income allocated to common shareholders $ 99,411 $ 98,045 $ 182,161 Weighted average common shares outstanding 82,945,103 82,837,369 81,985,897 Net effect of dilutive equity awards 1,573,292 2,261,210 1,957,081 Net effect of assumed convertible notes conversion to common shares — — 9,751,946 Diluted weighted average common shares outstanding 84,518,395 85,098,579 93,694,924 Diluted Earnings Per Common Share $ 1.18 $ 1.15 $ 1.94 For the years ended December 31, 2015 , 2014 , and 2013 , we determined certain equity awards outstanding during each of these periods qualified as participating securities. We included participating securities in the calculation of basic earnings per common share as well as diluted earnings per common share as we determined that the two-class method was more dilutive than the alternative treasury stock method for these shares. Dividends and undistributed earnings allocated to participating securities under the basic and diluted earnings per share calculations require specific shares to be included that may differ in certain circumstances. For the year ended December 31, 2013, 9,751,946 weighted average common shares related to the assumed conversion of the convertible notes were included in the calculation of diluted earnings per share as they were determined to be dilutive. For the years ended December 31, 2015 , 2014 , and 2013 , the number of outstanding equity awards that were antidilutive totaled 103,253 , 59,230 , and 224,241 , respectively. There were no other participating securities during these periods. For the year ended December 31, 2015 , 21,292,309 common shares related to the assumed conversion of our convertible notes were antidilutive and were excluded from the calculation of diluted earnings per share. For the year ended December 31, 2014 , 11,825,450 common shares related to the assumed conversion of our convertible notes and 985,591 weighted average common shares related to the assumed conversion of our exchangeable notes were antidilutive and were excluded from the calculation of diluted earnings per share. Stock Repurchases In August 2015, our Board of Directors authorized the repurchase of up to $100 million of our common stock. During the year ended December 31, 2015 , there were 6,452,313 shares repurchased pursuant to this authorization. During the years ended December 31, 2014 and 2013, there were no shares acquired under then-existing share repurchase authorizations. At December 31, 2015 , approximately $11 million of this authorization remained available for the repurchase of shares of our common stock. During the first quarter of 2016, we repurchased shares representing the remaining $11 million under this repurchase authorization. In February 2016, our Board of Directors approved an additional authorization for the repurchase of up to $100 million of our common stock and also authorized the repurchase of outstanding debt securities, including convertible and exchangeable debt. This authorization replaced all previous share repurchase plans and has no expiration date. Our repurchase authorization does not obligate us to acquire any specific number of shares or securities. Under this authorization, shares or securities may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

Equity Compensation Plans

Equity Compensation Plans	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Equity Compensation Plans	Equity Compensation Plans At December 31, 2015 and December 31, 2014 , 1,665,032 and 2,225,245 shares of common stock, respectively, were available for grant under our Incentive Plan. The unamortized compensation cost of awards issued under the Incentive Plan and purchases under the Employee Stock Purchase Plan totaled $24 million at December 31, 2015 , as shown in the following table. Table 17.1 – Activities of Equity Compensation Costs by Award Type Year Ended December 31, 2015 (In Thousands) Restricted Stock Deferred Stock Units Performance Stock Units Employee Stock Purchase Plan Total Unrecognized compensation cost at beginning of period $ 1,091 $ 12,304 $ 6,874 $ — $ 20,269 Equity grants 2,781 9,425 3,375 236 15,817 Equity grant forfeitures (387 ) (170 ) — — (557 ) Equity compensation expense (1,092 ) (7,167 ) (3,426 ) (236 ) (11,921 ) Unrecognized Compensation Cost at End of Period $ 2,393 $ 14,392 $ 6,823 $ — $ 23,608 At December 31, 2015 , the weighted average amortization period remaining for all of our equity awards was less than two years. Restricted Stock The following table summarizes the activities related to restricted stock for the years ended December 31, 2015 , 2014 , and 2013 . Table 17.2 – Restricted Stock Activities Years Ended December 31, 2015 2014 2013 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of period 109,464 $ 15.97 166,941 $ 15.01 190,088 $ 13.12 Granted 141,069 19.03 2,574 19.42 52,103 18.71 Vested (42,675 ) 14.87 (44,209 ) 13.44 (48,615 ) 12.63 Forfeited (20,678 ) 18.74 (15,842 ) 13.45 (26,635 ) 13.14 Outstanding at End of Period 187,180 $ 18.22 109,464 $ 15.97 166,941 $ 15.01 The expenses recorded for restricted stock awards were $1 million for the year ended December 31, 2015 , and less than $1 million for both the years ended December 31, 2014 , and 2013 . As of December 31, 2015 , there was $2 million of unrecognized compensation cost related to unvested restricted stock. This cost will be recognized over a weighted average period of less than two years. Restrictions on shares of restricted stock outstanding lapse through 2019 . Deferred Stock Units (“DSUs”) The following table summarizes the activities related to DSUs for the years ended December 31, 2015 , 2014 , and 2013 . Table 17.3 – Deferred Stock Units Activities Years Ended December 31, 2015 2014 2013 Units Weighted Units Weighted Units Weighted Outstanding at beginning of period 2,168,824 $ 16.20 2,266,473 $ 15.41 2,361,285 $ 14.46 Granted 583,958 16.11 350,769 19.62 552,250 19.31 Distributions (335,461 ) 14.20 (440,548 ) 14.82 (558,008 ) 15.51 Forfeitures (10,167 ) 16.60 (7,870 ) 19.06 (89,054 ) 11.18 Balance at End of Period (1) 2,407,154 $ 16.45 2,168,824 $ 16.20 2,266,473 $ 15.41 (1) PSU activity, including the number of PSUs outstanding, granted, distributed, and forfeited is not included in this table. Vested PSUs become vested DSUs prior to distribution, but are excluded from the table above and are described below under the heading "Performance Stock Units." We generally grant DSUs annually, as part of our compensation process. In addition, DSUs are granted from time-to-time in connection with hiring and promotions and in lieu of the payment in cash of a portion of annual bonus earned. At December 31, 2015 , 2014 , and 2013 , the number of outstanding DSUs that were unvested was 1,043,606 , 880,962 , and 1,003,053 , respectively. The weighted average grant-date fair value of these unvested DSUs was $17.22 , $17.20 , and $15.55 , at December 31, 2015 , 2014 , and 2013 , respectively. Unvested DSUs at December 31, 2015 will vest through 2019 . Expenses related to DSUs were $7 million , $6 million , and $6 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. At December 31, 2015 , there was $14 million of unrecognized compensation cost related to unvested DSUs. This cost will be recognized over a weighted average period of less than two years. At December 31, 2015 , 2014 , and 2013 , the number of outstanding DSUs that had vested was 1,363,548 , 1,287,862 , and 1,263,420 , respectively. Performance Stock Units (“PSUs”) At December 31, 2015 and December 31, 2014 , the target number of PSUs that were unvested was 849,021 and 761,051 , respectively. PSUs do not vest until the third anniversary of their grant date, with the level of vesting at that time contingent on total stockholder return (defined as the change in our common stock price, adjusted to reflect the reinvestment of all dividends declared and/or paid on our common stock, relative to the per share price of our common stock on the date of the PSU grant) over the three -year vesting period (“Three-Year TSR”). The number of underlying shares of our common stock that will vest in future years will vary between 0% (if Three-Year TSR is negative) and 200% (if Three-Year TSR is greater than or equal to 125% ) of the target number of PSUs originally granted, adjusted upward (if vesting is greater than 0% ) to reflect the value of dividends paid during the three -year vesting period. During 2015 , 2014 , and 2013 , 356,762 , 268,510 , and 223,749 target number of PSUs were granted, respectively, with per unit grant date fair values of $9.46 , $14.99 , and $14.19 , respectively. During the years ended December 31, 2015 and 2014 , there were no target number of PSUs forfeited due to employee departures. During the year ended December 31, 2013, there were 75,362 target number of PSUs forfeited due to employee departures. The grant date fair values of PSUs were determined through Monte-Carlo simulations using the following assumptions: our common stock closing price at the grant date, the average closing price of our common stock price for the 40 trading days prior to the grant date and the range of performance-based vesting based on total stockholder return over three years from the grant date. For the 2015 PSU grant, an implied volatility assumption of 26% (based on historical volatility), a risk free rate of 1.35% (the three-year Treasury rate on the grant date), and a 0% dividend yield (the mathematical equivalent to reinvesting the dividends over the three-year performance period as is consistent with the terms of the PSUs), were used. For the 2014 PSU grant, an implied volatility assumption of 24% , a risk free rate of 1.06% , and a 0% dividend yield were used. For the 2013 PSU grant, an implied volatility assumption of 27% , a risk free rate of 0.62% , and a 0% dividend yield were used. Expenses related to PSUs were $3 million for each of the years ended December 31, 2015 , 2014 , and 2013 , respectively. As of December 31, 2015 , there was $7 million of unrecognized compensation cost related to unvested PSUs. With respect to the PSUs granted in 2011, the three-year performance period ended during the fourth quarter of 2014, resulting in the vesting of 701,440 shares of our underlying common stock. With respect to the PSUs granted in 2012, the three-year performance period ended during the fourth quarter of 2015, resulting in the vesting of 57,049 shares of our underlying common stock. The distribution of these underlying shares of common stock occurred in May 2015 and December 2015, respectively, in accordance with the terms of the PSUs and our Executive Deferred Compensation Plan. Employee Stock Purchase Plan ("ESPP") The ESPP allows a maximum of 450,000 shares of common stock to be purchased in aggregate for all employees. As of December 31, 2015 , 310,040 shares had been purchased, respectively, and there remained a negligible amount of uninvested employee contributions in the ESPP at December 31, 2015 . The following table summarizes the activities related to the ESPP for the years ended December 31, 2015 , 2014 , and 2013 . Table 17.4 – Employee Stock Purchase Plan Activities Years Ended December 31, (In Thousands) 2015 2014 2013 Balance at beginning of period $ 3 $ 3 $ 3 Employee purchases 475 494 518 Cost of common stock issued (460 ) (494 ) (518 ) Balance at End of Period $ 18 $ 3 $ 3 Executive Deferred Compensation Plan The following table summarizes the cash account activities related to the EDCP for the years ended December 31, 2015 , 2014 , and 2013 . Table 17.5 – EDCP Cash Accounts Activities Years Ended December 31, (In Thousands) 2015 2014 2013 Balance at beginning of period $ 2,049 $ 1,882 $ 1,516 New deferrals 600 575 656 Accrued interest 61 70 58 Withdrawals (615 ) (478 ) (348 ) Balance at End of Period $ 2,095 $ 2,049 $ 1,882

Mortgage Banking and Invetsment

Mortgage Banking and Invetsment Activities, Net	12 Months Ended
	Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Mortgage Banking and Invetsment Activities, Net	Mortgage Banking and Investment Activities, Net The following table presents the components of mortgage banking and investment activities, net, recorded in our consolidated statements of income for the years ended December 31, 2015 , 2014 , and 2013 . Table 18.1 – Mortgage Banking and Investment Activities Years Ended December 31, (In Thousands) 2015 2014 2013 Residential mortgage banking activities, net: Changes in fair value of: Residential loans, at fair value (1) $ 3,712 $ 51,311 $ (10,455 ) Real estate securities (2) (15,261 ) (23,839 ) 42,451 Risk management derivatives (3) 14,657 (9,386 ) 47,387 Hedging allocation (2) 1,120 — — Other income, net (4) 4,040 3,468 48 Total residential mortgage banking activities, net: 8,268 21,554 79,431 Commercial mortgage banking activities, net: Changes in fair value of: Commercial loans, at fair value 10,265 20,789 8,694 Risk management derivatives (3) (8,011 ) (7,890 ) 3,376 Net gains on commercial loan sales — — 11,031 Other income 450 541 — Total commercial mortgage banking activities, net: 2,704 13,440 23,101 Investment activities, net Changes in fair value of: Residential loans held-for-investment, at Redwood (6,337 ) (697 ) — Real estate securities (2,265 ) (923 ) (5,357 ) Net investments in consolidated Sequoia entities (1,192 ) (894 ) (613 ) Risk sharing investments (1,886 ) 104 — Risk management derivatives (8,557 ) (7,792 ) 223 Hedging allocation (2) (1,120 ) — — Total investment activities: (21,357 ) (10,202 ) (5,747 ) Mortgage banking and investment activities, net $ (10,385 ) $ 24,792 $ 96,785 (1) Includes changes in fair value for associated loan purchase and forward sale commitments. (2) In the second quarter of 2015, we transferred securities previously utilized as hedges for our mortgage banking segment to our residential investments segment and began to record a hedging allocation between our business segments. See Note 2 for further discussion. (3) Represents market valuation changes of derivatives that are used to manage risks associated with our accumulation of residential and commercial loans. (4) Amounts in this line item include other fee income from loan acquisitions and the provision for repurchases expense, presented net.

Operating Expenses

Operating Expenses	12 Months Ended
	Dec. 31, 2015
Other Income and Expenses [Abstract]
Operating Expenses	Operating Expenses Components of our operating expenses for the years ended December 31, 2015 , 2014 and 2013 are presented in the following table. Table 19.1 – Components of Operating Expenses Years Ended December 31, (In Thousands) 2015 2014 2013 Fixed compensation expense $ 35,093 $ 29,057 $ 23,248 Variable compensation expense (1) 12,606 14,863 22,245 Equity compensation expense 11,921 9,750 10,077 Total compensation expense 59,620 53,670 55,570 Systems and consulting 10,212 11,654 7,517 Loan acquisition costs (2) 10,326 8,207 7,605 Accounting and legal 4,837 5,244 6,263 Office costs 5,270 5,011 3,503 Corporate costs 2,049 2,237 2,721 Other operating expenses 5,102 4,100 3,428 Total Operating Expenses $ 97,416 $ 90,123 $ 86,607 (1) For the year ended December 31, 2013, variable compensation expense included $4 million of severance expense. (2) Loan acquisition costs primarily includes underwriting and due diligence costs related to the acquisition of residential loans held-for-sale at fair value.

Taxes

Taxes	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Taxes	Taxes Components of our net deferred tax assets at December 31, 2015 and 2014 are presented in the following table. Table 20.1 – Deferred Tax Assets (Liabilities) (In Thousands) December 31, 2015 December 31, 2014 Deferred Tax Assets Net operating loss carryforward – state $ 95,972 $ 91,579 Net capital loss carryforward – state 22,603 27,308 Net operating loss carryforward – federal 32,929 18,765 Net capital loss carryforward – federal 7,971 7,903 Real estate assets 5,144 — Interest rate agreements 1,472 — Allowances and accruals 3,458 2,355 Other 513 210 Total Deferred Tax Assets 170,062 148,120 Deferred Tax Liabilities Real estate assets — (6,821 ) Mortgage Servicing Rights (50,630 ) (37,581 ) Interest rate agreements — (87 ) Tax effect of unrealized gains – OCI (2,638 ) (2,684 ) Total Deferred Tax Liabilities (53,268 ) (47,173 ) Valuation allowance (116,794 ) (111,183 ) Total Deferred Tax Asset (Liability), net of Valuation Allowance $ — $ (10,236 ) The deferred tax assets and liabilities reported above, with the exception of the state net operating loss and capital loss carryforwards, relate solely to our TRS. For state purposes, the REIT files a unitary combined return with its TRS. Because the REIT may have state taxable income apportioned to it from the activity of its TRS, we report the entire combined unitary state net operating loss and capital loss carryforwards as deferred tax assets, including the carryforwards allocated to the REIT. Realization of our deferred tax assets at December 31, 2015 , is dependent on many factors, including generating sufficient taxable income prior to the expiration of NOL carryforwards and generating sufficient capital gains in future periods prior to the expiration of capital loss carryforwards. We determine the extent to which realization of the deferred assets is not assured and establish a valuation allowance accordingly. GAAP losses generated at our TRS in 2015 caused us to report net federal deferred tax assets at December 31, 2015, as compared to net federal deferred tax liabilities at December 31, 2014. Our deferred tax asset valuation allowance increased during 2015 , as compared to 2014 , due to our recording of a full valuation allowance against our net federal deferred tax assets. We are uncertain about our ability to generate sufficient taxable income or capital gains in future periods needed to utilize net deferred tax assets beyond the reversal of our deferred tax liabilities, and recorded a full valuation allowance accordingly. Consistent with prior periods, we continue to provide a full valuation allowance against our net state deferred tax assets. Our estimate of net deferred tax assets could change in future periods to the extent that actual or revised estimates of future taxable income during the carryforward periods change from current expectations. We assessed our tax positions for all open tax years (i.e., Federal, 2012 to 2015, and State, 2011 to 2015) and, at December 31, 2015 and 2014 , concluded that we had no uncertain tax positions that resulted in material unrecognized tax benefits. The following table summarizes the provision for income taxes for the years ended December 31, 2015 , 2014 , and 2013 . Table 20.2 – Provision for Income Taxes Years Ended December 31, (In Thousands) 2015 2014 2013 Current Provision for Income Taxes Federal $ 144 $ 24 $ 3,490 State 167 17 142 Total Current Provision for Income Taxes 311 41 3,632 Deferred Provision for Income Taxes Federal (10,198 ) 703 7,316 State (459 ) — — Total Deferred Provision for (Benefit from) Income Taxes (10,657 ) 703 7,316 Total Provision for Income Taxes $ (10,346 ) $ 744 $ 10,948 At December 31, 2015 , our federal NOL carryforward at the REIT was $70 million , which will expire in 2029 . In order to utilize NOLs at the REIT, taxable income must exceed dividend distributions. At December 31, 2015 , our taxable REIT subsidiaries had federal NOLs of $97 million , which will expire between 2030 and 2035 . Redwood and its taxable subsidiaries accumulated an estimated state NOL of $1.3 billion at December 31, 2015 . These NOLs expire beginning in 2028 . If certain substantial changes in the Company’s ownership occur, there could be an annual limitation on the amount of the carryforwards that can be utilized. For the years ended December 31, 2015 and 2014 , we recognized a benefit from income taxes of $10 million and a provision for income taxes of $1 million , respectively. The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at December 31, 2015 and 2014 . Table 20.3 – Reconciliation of Statutory Tax Rate to Effective Tax Rate December 31, 2015 December 31, 2014 December 31, 2013 Federal statutory rate 34.0 % 34.0 % 34.0 % State statutory rate, net of Federal tax effect 7.2 % 7.2 % 7.2 % Permanent differences in taxable (loss) income from GAAP income (20.3 )% (14.5 )% (1.9 )% Change in valuation allowance 6.1 % (0.1 )% (16.4 )% Dividends paid deduction (38.3 )% (25.9 )% (17.0 )% Effective Tax Rate (11.3 )% 0.7 % 5.9 % For the year ended December 31, 2015 , our TRS had GAAP losses that resulted in a benefit from income taxes, while our REIT had GAAP income and essentially no tax provision due to the dividends paid deduction. As our consolidated GAAP income was positive and we recorded a consolidated benefit from income taxes, our resulting effective tax rate was negative. We believe that we have met all requirements for qualification as a REIT for federal income tax purposes. Many requirements for qualification as a REIT are complex and require analysis of particular facts and circumstances. Often there is only limited judicial or administrative interpretive guidance and as such there can be no assurance that the Internal Revenue Service or courts would agree with our various tax positions. If we did not meet the requirements for statutory relief, we could be subject to a 100% prohibited transaction tax for certain transactions, be required to distribute additional dividends, or be subject to federal income tax at regular corporate rates. We could also potentially lose our REIT status. Any of these outcomes could have a material adverse impact on our consolidated financial statements.

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Segment Information	Segment Information During 2015, Redwood operated in three segments: residential mortgage banking, residential investments, and commercial mortgage banking and investments. Our segments are based on our organizational and management structure, which aligns with how our results are monitored and performance is assessed. The accounting policies of the reportable segments are the same as those described in Note 3 — Summary of Significant Accounting Policies. For a full description of our segments, see Item 1—Business in this Annual Report on Form 10-K. Segment contribution represents the measure of profit that management uses to assess the performance of our business segments and make resource allocation and operating decisions. Certain expenses not directly assigned or allocated to one of the three primary segments, as well as activity from certain consolidated Sequoia entities consolidated for GAAP financial reporting purposes, are included in the Corporate/Other column as reconciling items to our consolidated financial statements. These unallocated expenses primarily include interest expense associated with certain long-term debt, indirect operating expenses, and other expense. Prior to the second quarter of 2015, we utilized certain Sequoia interest only ("IO") securities in part to serve as hedges in our residential mortgage banking segment. As such, we included these securities in the segment’s assets as well as the interest income and market valuation adjustments related to the securities in the segment’s results. During the second quarter of 2015, we transferred these securities to our residential investments segment. Additionally, in the second quarter of 2015, we began to record a hedging allocation between our segments. During 2015, we managed our market interest rate risk on an enterprise-wide basis, whereby we relied on certain assets to serve as natural hedges to other assets, and in some cases these assets were in different segments. Management used this allocation to assess the economic returns of each segment on a stand-alone basis and the allocation had no impact on our consolidated results. This was a prospective change in how we manage our business and allocate capital to each segment. As such, we did not conform prior period results for our segments. Analysis of our year-over-year results are discussed in Part II, Item 7, Management’s Discussion and Analysis of Results of Operations in this Annual Report on Form 10-K. The following tables present financial information by segment for the years ended December 31, 2015 , 2014 , and 2013 . Table 21.1 – Business Segment Financial Information Year Ended December 31, 2015 (In Thousands) Residential Mortgage Banking Residential Investments Commercial Mortgage Banking and Investments Corporate/ Other Total Interest income $ 52,260 $ 135,395 $ 46,933 $ 24,844 $ 259,432 Interest expense (17,207 ) (11,204 ) (13,809 ) (53,663 ) (95,883 ) Net interest income (loss) 35,053 124,191 33,124 (28,819 ) 163,549 Reversal of provision for loan losses — — 355 — 355 Non-interest income Mortgage banking and investment activities, net (1) 8,268 (20,089 ) 2,704 (1,268 ) (10,385 ) MSR income (loss), net — (3,922 ) — — (3,922 ) Other income — 3,192 — — 3,192 Realized gains, net — 36,369 — — 36,369 Total non-interest income, net 8,268 15,550 2,704 (1,268 ) 25,254 Direct operating expenses (43,182 ) (4,346 ) (11,331 ) (38,557 ) (97,416 ) Benefit from income taxes 4,169 847 1,452 3,878 10,346 Segment Contribution $ 4,308 $ 136,242 $ 26,304 $ (64,766 ) Net Income $ 102,088 Non-cash amortization income (expense) $ (186 ) $ 36,850 $ (267 ) $ (3,994 ) $ 32,403 Hedging allocations (1) 1,120 (1,070 ) — (50 ) — (1) Intersegment hedging allocation presented in the tables above is included in the mortgage banking and investment activities, net line item of the segment income statement for the year ended December 31, 2015 . Year Ended December 31, 2014 (In Thousands) Residential Mortgage Banking Residential Investments Commercial Mortgage Banking and Investments Corporate/ Total Interest income $ 58,272 $ 110,433 $ 47,567 $ 25,798 $ 242,070 Interest expense (12,776 ) (11,848 ) (15,836 ) (47,003 ) (87,463 ) Net interest income (loss) 45,496 98,585 31,731 (21,205 ) 154,607 Provision for loan losses — — (84 ) (877 ) (961 ) Non-interest income Mortgage banking and investment activities, net 21,554 (9,178 ) 13,440 (1,024 ) 24,792 MSR income (loss), net — (4,261 ) — — (4,261 ) Other income — 181 — 1,600 1,781 Realized gains, net — 13,777 — 1,701 15,478 Total non-interest income, net 21,554 519 13,440 2,277 37,790 Direct operating expenses (37,664 ) (3,681 ) (11,324 ) (37,454 ) (90,123 ) (Provision for) benefit from income taxes (1,774 ) 1,340 (234 ) (76 ) (744 ) Segment Contribution $ 27,612 $ 96,763 $ 33,529 $ (57,335 ) Net Income $ 100,569 Non-cash amortization income (expense) $ (181 ) $ 42,784 $ (673 ) $ (8,232 ) $ 33,698 Year Ended December 31, 2013 (In Thousands) Residential Mortgage Banking Residential Investments Commercial Mortgage Banking and Investments Corporate/ Total Interest income $ 52,517 $ 96,399 $ 43,420 $ 33,820 $ 226,156 Interest expense (10,167 ) (10,067 ) (12,677 ) (48,060 ) (80,971 ) Net interest income (loss) 42,350 86,332 30,743 (14,240 ) 145,185 Provision for loan losses — — (3,288 ) (1,449 ) (4,737 ) Non-interest income Mortgage banking and investment activities, net 79,431 (5,134 ) 23,101 (613 ) 96,785 MSR income (loss), net — 20,309 — — 20,309 Realized gains, net — 24,765 210 284 25,259 Total non-interest income, net 79,431 39,940 23,311 (329 ) 142,353 Direct operating expenses (22,880 ) (4,035 ) (9,579 ) (50,113 ) (86,607 ) Other expense — — — (12,000 ) (12,000 ) (Provision for) benefit from income taxes (5,947 ) (3,027 ) (3,827 ) 1,853 (10,948 ) Segment Contribution $ 92,954 $ 119,210 $ 37,360 $ (76,278 ) Net Income $ 173,246 Non-cash amortization income (expense) $ — $ 34,578 $ (798 ) $ (7,338 ) $ 26,442 The following table presents the components of Corporate/Other that are presented in the preceding tables for the years ended December 31, 2015 , 2014 , and 2013 . Years Ended December 31, 2015 2014 2013 (In Thousands) Legacy VIEs (1) Other Total Legacy VIEs (1) Other Total Legacy VIEs (1) Other Total Interest income $ 24,814 $ 30 $ 24,844 $ 25,786 $ 12 $ 25,798 $ 33,663 $ 157 $ 33,820 Interest expense (15,646 ) (38,017 ) (53,663 ) (20,844 ) (26,159 ) (47,003 ) (25,876 ) (22,184 ) (48,060 ) Net interest income (loss) 9,168 (37,987 ) (28,819 ) 4,942 (26,147 ) (21,205 ) 7,787 (22,027 ) (14,240 ) Provision for loan losses — — — (877 ) — (877 ) (1,449 ) — (1,449 ) Non-interest income Mortgage banking and investment activities, net (1,192 ) (76 ) (1,268 ) (894 ) (130 ) (1,024 ) (613 ) — (613 ) MSR income (loss), net — — — — — — — — — Other income — — — — 1,600 1,600 — — — Realized gains, net — — — 1,701 — 1,701 284 — 284 Total non-interest income, net (1,192 ) (76 ) (1,268 ) 807 1,470 2,277 (329 ) — (329 ) Direct operating expenses — (38,557 ) (38,557 ) (165 ) (37,289 ) (37,454 ) (231 ) (49,882 ) (50,113 ) Other expense — — — — — — — (12,000 ) (12,000 ) (Provision for) benefit from income taxes — 3,878 3,878 — (76 ) (76 ) — 1,853 1,853 Total $ 7,976 $ (72,742 ) $ (64,766 ) $ 4,707 $ (62,042 ) $ (57,335 ) $ 5,778 $ (82,056 ) $ (76,278 ) (1) Legacy VIEs represent legacy Sequoia entities that are consolidated for GAAP financial reporting purposes. See Note 4 for further discussion on VIEs. The following table presents supplemental information by segment at December 31, 2015 and December 31, 2014 . Table 21.3 – Supplemental Segment Information (In Thousands) Residential Mortgage Banking Residential Investments Commercial Mortgage Banking and Investments Corporate/ Other Total December 31, 2015 Residential loans $ 1,115,738 $ 1,791,195 $ — $ 1,021,870 $ 3,928,803 Commercial loans — — 402,647 — 402,647 Real estate securities 197,007 1,028,171 8,078 — 1,233,256 Mortgage servicing rights — 191,976 — — 191,976 Total assets 1,347,492 3,140,604 416,258 1,326,673 6,231,027 December 31, 2014 Residential loans $ 1,342,519 $ 581,668 $ — $ 1,474,386 $ 3,398,573 Commercial loans — — 566,927 — 566,927 Real estate securities 93,802 1,285,428 — — 1,379,230 Mortgage servicing rights — 139,293 — — 139,293 Total assets 1,468,856 2,057,256 575,943 1,816,911 5,918,966

Quarterly Financial Data - Unau

Quarterly Financial Data - Unaudited	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data - Unaudited	Quarterly Financial Data - Unaudited Three Months Ended (In Thousands, Except Per Share Data) December 31, September 30, June 30, March 31, 2015 Operating results: Interest income (1) $ 68,829 $ 63,484 $ 63,373 $ 63,746 Interest expense (25,039 ) (23,875 ) (23,008 ) (23,961 ) Net interest income 43,790 39,609 40,365 39,785 Non-interest income (loss) 19,593 (3,412 ) 14,104 (5,031 ) Operating expenses (22,638 ) (24,497 ) (25,218 ) (25,063 ) Net income 41,059 19,164 27,064 14,801 Per share data: Net income – basic $ 0.49 $ 0.22 $ 0.31 $ 0.17 Net income – diluted 0.46 0.22 0.31 0.16 Regular dividends declared per common share 0.28 0.28 0.28 0.28 2014 Operating results: Interest income $ 65,251 $ 63,351 $ 57,993 $ 55,475 Interest expense (23,903 ) (23,350 ) (21,151 ) (19,059 ) Net interest income 41,348 40,001 36,842 36,416 Non-interest income 10,686 28,519 1,475 (4,671 ) Operating expenses (26,462 ) (21,406 ) (22,282 ) (19,973 ) Net income 27,122 45,097 16,017 12,333 Per share data: Net income – basic $ 0.32 $ 0.53 $ 0.19 $ 0.14 Net income – diluted 0.31 0.50 0.18 0.14 Regular dividends declared per common share 0.28 0.28 0.28 0.28 (1) Interest income for both three-month periods ended December 31, 2015, and June 30, 2015, included $2 million of yield maintenance fees from commercial loans that prepaid during the quarters.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On January 20, 2016, we announced plans to restructure certain aspects of our conforming residential mortgage loan operations by discontinuing the acquisition and aggregation of conforming loans for resale to the Agencies. On February 9, 2016, we announced that we are repositioning our commercial business and will discontinue commercial loan originations. In February 2016, our Board of Directors approved an additional authorization for the repurchase of up to $100 million of our common stock and also authorized the repurchase of outstanding debt securities, including convertible and exchangeable debt. This authorization replaced all previous share repurchase plans and has no expiration date. Our repurchase authorization does not obligate us to acquire any specific number of shares or securities. Under this authorization, shares or securities may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

Summary of Significant Accoun31

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements presented herein are at December 31, 2015 and December 31, 2014 , and for the years ended December 31, 2015 , 2014 , and 2013 . These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") — as prescribed by the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) — and the rules and regulations of the Securities and Exchange Commission ("SEC"). In the opinion of management, all normal and recurring adjustments to present fairly the financial condition of the company at December 31, 2015 and results of operations for all periods presented have been made. In the second quarter of 2015, we began to specifically identify derivatives that are used to hedge our exposure to market interest rate risk associated with our MSR investments. As a result, beginning in the second quarter of 2015, we changed our income statement presentation to include the change in market value of these derivatives in the line item “Mortgage servicing rights income (loss), net.” As we previously managed our market interest rate risk on a portfolio-wide basis and did not necessarily rely on derivatives to hedge our MSRs, we cannot conform prior periods to the current presentation. Therefore, in periods prior to the second quarter of 2015 presented in our consolidated statements of income, amounts in “Mortgage servicing rights income (loss), net” do not reflect the impact of hedging. These changes and year-over-year comparisons are discussed in further detail in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Annual Report on Form 10-K. Additionally, beginning in the second quarter of 2015, we combined our “Mortgage banking activities” and “Other market valuation adjustments” line items on our consolidated statements of income into a single line, now called “Mortgage banking and investment activities, net.” During 2015, we managed our market interest rate risk on the remainder of our assets (excluding MSRs) on a net basis, and we believe that combining these two line items better reflects the net effect of our hedging activities on the assets associated with derivatives that are marked-to-market each quarter. We have conformed the presentation of prior periods related to this change for consistency of comparison.
Principles of Consolidation	Principles of Consolidation In accordance with GAAP, we determine whether we must consolidate transferred financial assets and variable interest entities (“VIEs”) for financial reporting purposes. We currently consolidate the assets and liabilities of certain Sequoia securitization entities where we maintain an ongoing involvement, as well as an entity formed in connection with a commercial securitization we engaged in during 2012 (“Commercial Securitization”). We also consolidated the assets and liabilities of an entity formed in connection with a resecuritization transaction we engaged in (“Residential Resecuritization”) from its creation in 2011 through the fourth quarter of 2015, when the debt of the entity was repaid, the assets of the entity were distributed to us, and the entity was dissolved. Each securitization entity is independent of Redwood and of each other and the assets and liabilities are not owned by and are not legal obligations of Redwood Trust, Inc. Our exposure to these entities is primarily through the financial interests we have retained, although we are exposed to certain financial risks associated with our role as a sponsor or depositor of these entities or as a result of our having sold assets directly or indirectly to these entities. For financial reporting purposes, the underlying loans and securities owned at the consolidated Sequoia entities, the Residential Resecuritization entity, and the Commercial Securitization entity are shown under residential and commercial loans and real estate securities on our consolidated balance sheets. The asset-backed securities (“ABS”) issued to third parties by these entities are shown under ABS issued. In our consolidated statements of income, we record interest income on the loans and securities owned at these entities and interest expense on the ABS issued by these entities as well as other income and expenses associated with these entities' activities. See Note 4 for further discussion on principles of consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements requires us to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amounts and timing of credit losses, prepayment rates, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the consolidated financial statements and the reported amounts of certain revenues and expenses during the reported periods. It is likely that changes in these estimates (e.g., valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term. Our estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material.
Fair Value Measurements	Fair Value Measurements Our financial statements include assets and liabilities that are measured at their estimated fair values in accordance with GAAP. A fair value measurement represents the price at which an orderly transaction would occur between willing market participants at the measurement date. We develop fair values for financial assets or liabilities based on available inputs and pricing that is observed in the marketplace. Examples of market information that we attempt to obtain include the following: • Quoted prices for the same or similar securities; • Relevant reports issued by analysts and rating agencies; • The current level of interest rates and any directional movements in relevant indices, such as credit risk indices; • Information about the performance of mortgage loans, such as delinquency and foreclosure rates, loss experience, and prepayment rates; • Indicative prices or yields from broker/dealers (including prices from counterparties under securities repurchase agreements); and • Other relevant observable inputs, including nonperformance risk and liquidity premiums. After considering all available indications of the appropriate rate of return that market participants would require, we consider the reasonableness of the range indicated by the results to determine an estimate that is most representative of fair value. The markets for many of the loans and securities that we invest in and issue are generally illiquid. Establishing fair values for illiquid assets and liabilities is inherently subjective and is often dependent upon our estimates and modeling assumptions. If we determine that either the volume and/or level of trading activity for an asset or liability has significantly decreased from normal market conditions, or price quotations or observable inputs are not associated with orderly transactions, the market inputs that we obtain might not be relevant. For example, broker or pricing service quotes might not be relevant if an active market does not exist for the financial asset or liability. The nature of the quote (for example, whether the quote is an indicative price or a binding offer) is also evaluated. In circumstances where relevant market inputs cannot be obtained, increased analysis and management judgment are required to estimate fair value. This generally requires us to establish internal assumptions about future cash flows and appropriate risk-adjusted discount rates. Regardless of the valuation inputs we apply, the objective of fair value measurement is unchanged from what it would be if markets were operating at normal activity levels and/or transactions were orderly; that is, to determine the current exit price. See Note 5 for further discussion on fair value measurements.
Fair Value Option	Fair Value Option We have the option to measure eligible financial assets, financial liabilities, and commitments at fair value on an instrument-by-instrument basis. This option is available when we first recognize a financial asset or financial liability or enter into a firm commitment. Subsequent changes in the fair value of assets, liabilities, and commitments where we have elected the fair value option are recorded in our consolidated statements of income. We elect the fair value option for certain residential and commercial loans, MSRs, Sequoia interest only (“IO”) securities, and certain mezzanine classified subordinate securities. We generally elect the fair value option for residential and commercial loans that are held-for-sale, due to our intent to sell or securitize the loans in the near-term. We elect the fair value option for our MSRs, Sequoia IO securities, and certain subordinate securities, for which we generally hedge market interest rate risk. As such, we seek to offset interest rate related changes in the values of these investments with changes in the values of their associated hedges through our consolidated statements of income. In addition, upon the adoption of ASU 2014-13 in 2015, we elected the fair value option for the assets and liabilities of our consolidated Sequoia entities. See Note 5 for further discussion on the fair value option.
Real Estate Loans	Real Estate Loans Residential and Commercial Loans - Held-for-Sale at Fair Value Residential and commercial loans held-for-sale include loans that we are marketing for sale to third parties, including transfers to securitization entities that we plan to sponsor and expect to be accounted for as sales for financial reporting purposes. We generally elect the fair value option for residential and commercial loans that we purchase with the intent to sell to third parties or transfer to Sequoia securitizations. Coupon interest is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due. Changes in fair value are recurring and are reported through our consolidated statements of income in mortgage banking and investing activities. We reclassify loans held-for-sale as loans held-for investment if we determine we will hold the loans for long-term investment. During 2014 and 2015, loans initially classified as held-for-sale were reclassified to held-for-investment when they were transferred to our FHLB-member subsidiary and financed with borrowings from the FHLBC. Residential and Commercial Loans - Held-for-Investment Residential Loans - At Fair Value Certain loans that were originally purchased with the intent to sell as part of our residential mortgage banking operations, and for which we elected the fair value option at acquisition, were subsequently reclassified to held-for-investment ("HFI") when the loans were transferred to our FHLBC member subsidiary and pledged as collateral for borrowings made from the Federal Home Loan Bank of Chicago (“FHLBC”). As of December 31, 2015 , our current intention is to hold these loans for longer-term investment while they are financed by the FHLBC. Coupon interest is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due. Changes in fair value are recurring and are reported through our consolidated statements of income in mortgage banking and investing activities. Commercial Loans - At Fair Value We may elect the fair value option for senior commercial mortgage loans that we originate or acquire that are bifurcated into a senior portion that is sold to a third party and a junior portion that we retain as an investment. When the transfer of the senior portion does not meet the criteria for sale treatment under GAAP, the entire loan (the senior and junior portions) remains on our consolidated balance sheet, and we account for the transfer of the senior portion as a secured borrowing. Coupon interest is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due. Changes in fair value are recurring and are reported through our consolidated statements of income in mortgage banking and investing activities. Residential and Commercial Loans - At Amortized Cost Loans held-for-investment at amortized cost include certain commercial loans, including those owned at the Commercial Securitization entity, and prior to January 1, 2015, included residential loans owned at consolidated Sequoia entities. Coupon interest is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due or has been individually impaired, at which point the loan is placed on nonaccrual status. Interest previously accrued for loans that have become greater than 90 days past due or individually impaired is reserved for in the allowance for loan losses. Residential loans delinquent more than 90 days or in foreclosure are characterized as a serious delinquency. Cash principal and interest that is advanced from servicers subsequent to a loan becoming greater than 90 days past due or individually impaired is accounted for as a reduction in the outstanding loan principal balance. When a seriously delinquent loan previously placed on nonaccrual status has cured, meaning all delinquent principal and interest have been remitted by the borrower, the loan is placed back on accrual status. Alternately, loans that have been individually impaired may be placed back on accrual status if restructured and after the loan is considered reperforming. A restructured loan is considered reperforming when the loan has been current for at least 12 months. We reclassify loans held-for-investment as loans held-for-sale if we determine that these loans will be sold or transferred to third parties. This may occur, for example, if we exercise our right to call ABS issued by a Sequoia securitization trust and decide to subsequently sell the underlying loans to third parties. See Note 6 for further discussion on residential loans. See Note 7 for further discussion on commercial loans. Residential Loans - Allowance for Loan Losses, Loan Modifications, and Foreclosed Loans Upon the adoption of ASU 2014-13 on January 1, 2015, we reclassified all residential loans held-for-investment at amortized cost to fair value. As such, we no longer maintain an allowance for loan losses for residential loans. As part of the loss mitigation efforts undertaken by servicers of residential loans owned at Sequoia securitization entities, certain delinquent loans have been modified and additional loans may be modified in the future. Loan modifications may include, but are not limited to: (i) conversion of a floating rate mortgage loan into a fixed rate mortgage loan; (ii) reduction in the contractual interest rate of a mortgage loan; (iii) forgiveness of a portion of the contractual interest and/or principal amounts owed on a mortgage loan; and, (iv) extension of the contractual maturity of a mortgage loan. We evaluate all loan modifications performed by servicers to determine if they constitute troubled debt restructurings (“TDRs”) according to GAAP. If a loan is determined to be a TDR, it is removed from the general loan pools used for calculating allowances for loan losses and assessed for impairment on an individual basis based upon any adverse change in the expected future cash flows resulting from the modification. This difference is recorded to mortgage banking and investment activities, net on our consolidated statements of income. When foreclosed property is received in full satisfaction for a defaulted loan, we estimate the fair value of the property, based on estimated net proceeds from the sale of the property (including servicer advances and other costs). To the extent that the fair value of the property is below the recorded investment of the loan, a charge is recorded to mortgage banking and investment activities, net, on our consolidated statements of income, for the difference. Foreclosed property is subsequently recorded as real estate owned (“REO”), a component of other assets on our consolidated balance sheets. Actual losses incurred on loans liquidated through a short-sale are also charged against the allowance for loan losses. See Note 6 for further discussion on the allowance for loan losses for residential loans. Commercial Loans - Allowance for Loan Losses For commercial loans classified as held-for-investment at amortized cost, we establish and maintain a general allowance for loan losses inherent in our portfolio at the reporting date and, where appropriate, a specific allowance for loan losses for loans we have determined to be impaired at the reporting date. An individual loan is considered impaired when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan. Our methodology for assessing the adequacy of the allowance for loan losses begins with a formal review of each commercial loan in the portfolio and the assignment of an internal impairment status. Reviews are performed at least quarterly. We consider the following factors in evaluating each loan: • Loan to value ratios upon origination or acquisition of the loan; • The most recent financial information available for each loan and associated properties, including net operating income, debt service coverage ratios, occupancy rates, rent rolls, as well as any other loss factors we consider relevant, such as, but not limited to, specific loan trigger events that would indicate an adverse change in expected cash flows or payment delinquency; • Economic trends, both macroeconomic as well as those directly affecting the properties associated with our loans, and the supply and demand of competing projects in the sub-market in which the subject property is located; and • The loan sponsor or borrowing entity’s ability to ensure that properties associated with the loan are managed and operated sufficiently. Loan reviews are completed by asset management and finance personnel and reviewed and approved by senior management. Based on the assigned internal impairment status, a loan is categorized as “Pass,” “Watch List,” or “Workout.” Pass loans are defined as loans that are performing in accordance with the contractual terms of the loan agreement. Watch List loans are defined as performing loans for which the timing of cost recovery is under review. Workout loans are defined as loans that we believe have a credit impairment that may lead to a realized loss. Workout loans are typically assessed for impairment on an individual basis. Where an individual commercial loan is impaired, we record an allowance to reduce the carrying value of the loan to the current present value of expected future cash flows discounted at the loan’s effective rate or if a loan is collateral dependent, we reduce the carrying value to the estimated fair market value of the loan with a corresponding charge to provision for loan losses on our consolidated statements of income. For all commercial loans that are not individually impaired, we assess the commercial loan portfolio in aggregate for loan losses based on our expectation of credit losses inherent in the portfolio at the reporting date. Our expectation of credit losses is informed by, among other things: • Historical loss rates and past performance of similar loans in our own portfolio, if any; • Publicly available third-party reference loss rates on similar loans; and • Trends in delinquencies and charge-offs in our own portfolio and among industry participants. See Note 7 for further discussion on the allowance for loan losses for commercial loans. Repurchase Reserves We sell residential mortgage loans to various parties, including (1) securitization trusts, (2) Fannie Mae and Freddie Mac (“the Agencies”), and (3) banks and other financial institutions that purchase mortgage loans for investment or private label securitization. We may be required to repurchase residential mortgage loans we have sold, or loans associated with MSRs we have purchased, in the event of a breach of specified contractual representations and warranties made in connection with these sales and purchases. With respect to MSRs we purchase, if the associated residential loan has been sold to one of the Agencies (which is typically the case), that Agency can require us, as the owner of the MSR, to repurchase the residential loan in the event of such a breach of representations and warranties even though we were not the party that sold the associated loan to that Agency. In January 2016, we discontinued the acquisition and aggregation of conforming loans for resale to the Agencies. We do not originate residential mortgage loans and believe the initial risk of loss due to loan repurchases (i.e., due to a breach of representations and warranties) would generally be a contingency to the companies from whom we acquired the loans or MSRs. However, in some cases, such as where loans or MSRs were acquired from companies that have since become insolvent, we may have to bear the loss associated with a loan repurchase. Furthermore, even if we do not have to ultimately bear such a loss because we can recover from the company that sold us the loan or the MSR, there could be a delay in making that recovery. We establish reserves for mortgage repurchase liabilities related to various representations and warranties that reflect management’s estimate of losses for loans for which we could have a repurchase obligation, based on a combination of factors. Such factors can include estimated future defaults and loan repurchase rates, the potential severity of loss in the event of defaults, and the probability of our being liable for a repurchase obligation. We establish a reserve at the time loans are sold and MSRs are purchased and continually update our reserve estimate during its life. The reserve for mortgage loan repurchase losses is included in other liabilities on our consolidated balance sheets and the related expense is included as a component of mortgage banking and investment activities, net and MSR income (loss), net on our consolidated statements of income. See Note 15 for further discussion on the residential repurchase reserves.
Real Estate Securities, at Fair Value	Real Estate Securities, at Fair Value We classify our real estate securities as trading or available-for-sale securities. We use the “prime” or “non-prime” designation to categorize our residential securities based upon the general credit characteristics of the residential loans underlying each security at the time of origination. For example, prime residential loans are generally characterized by lower loan-to-value (“LTV”) ratios at the time the loans were originated, and are made to borrowers with higher Fair Isaac Corporation (“FICO”) scores. Non-prime residential loans are generally characterized by higher LTV ratios at the time the loans were originated and may have been made to borrowers with lower credit scores or impaired credit histories (while exhibiting the ability to repay their loans) at the time the loan was originated. Regardless of whether or not the loans underlying a residential security were designated as prime or non-prime at origination, there is a risk that the borrower may not be able to repay the loan. Trading Securities We primarily denote trading securities as those securities where we have adopted the fair value option. Trading securities are carried at their estimated fair values. Coupon interest is recognized as interest income when earned and deemed collectible. Changes in the fair value of securities designated as trading securities are reported in mortgage banking and investment activities, net on our consolidated statements of income. Available-for-Sale Securities AFS securities primarily consist of non-agency residential mortgage backed securities (“RMBS”) and may include other residential and commercial securities. Non-Agency RMBS are not issued or guaranteed by a federally chartered corporation, such as Fannie Mae or Freddie Mac, or any agency of the U.S. Government. AFS securities are carried at their estimated fair value with unrealized gains and losses excluded from earnings (except when an other-than-temporary impairment (“OTTI”) is recognized, as discussed below) and reported in accumulated other comprehensive income (“AOCI”), a component of stockholders’ equity. Interest income on AFS securities is accrued based on their outstanding principal balance and contractual terms and interest income is recognized based on the security’s effective interest rate. In order to calculate the effective interest rate, we must project cash flows over the remaining life of each security and make assumptions with regards to interest rates, prepayment rates, the timing and amount of credit losses, and other factors. On at least a quarterly basis, we review and, if appropriate, make adjustments to our cash flow projections based on input and analysis received from external sources, internal models, and our own judgments about interest rates, prepayment rates, the timing and amount of credit losses, and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in the yield and interest income recognized on these securities or in the recognition of OTTI as discussed below. For AFS securities purchased and held at a discount, a portion of the discount may be designated as non-accretable purchase discount (“credit reserve”), based on the cash flows we have projected for the security. The amount designated as credit reserve may be adjusted over time, based on our periodic evaluation of projected cash flows. If the performance of a security with a credit reserve is more favorable than previously forecasted, a portion of the credit reserve may be reallocated to accretable discount and recognized into interest income over time. Conversely, if the performance of a security with a credit reserve is less favorable than forecasted, the amount designated as credit reserve may be increased, or impairment charges and write-downs of such securities to a new cost basis could result. When the fair value of an AFS security is less than its amortized cost at the reporting date, the security is considered impaired. We assess our impaired securities at least quarterly to determine if the impairment is temporary or other-than-temporary (resulting in an OTTI). If we either - (i) intend to sell the impaired security; (ii) will more likely than not be required to sell the impaired security before it recovers in value; or (iii) if there has been an adverse change in cash flows - the impairment is deemed an OTTI. In the case of criteria (i) and (ii), we record the entire difference between the security’s estimated fair value and its amortized cost at the reporting date in our consolidated statements of income. If there has been an adverse change in cash flows, only the portion of the OTTI related to “credit” losses is recognized through other market valuation adjustments on our consolidated statements of income, with the remaining “non-credit” portion recognized through AOCI on our consolidated balance sheet. If the first two criteria are not met and there has not been an adverse change in cash flows, the impairment is considered temporary and the entire unrealized loss is recognized through AOCI on our consolidated balance sheets. For impaired AFS securities, to determine if there has been an adverse change in cash flows and if any portion of a resulting OTTI is related to credit losses, we compare the present value of the cash flows expected to be collected as of the current financial reporting date to the amortized cost basis of the security. The discount rate used to calculate the present value of expected future cash flows is the current yield used for income recognition purposes. If the present value of the current expected cash flows is less than the amortized cost basis, there has been an adverse change and the security is considered OTTI with the difference between these two amounts representing the credit loss. The determination as to whether an OTTI exists and, if so, the amount of credit impairment recognized in earnings is subjective, and based on information available at the time of the assessment as well as our estimates of future performance and cash flows. As a result, the timing and amount of OTTI constitute a material estimate that is susceptible to significant change. See Note 8 for further discussion on real estate securities.
MSRs	MSRs We recognize MSRs through the retention of servicing rights associated with residential mortgage loans that we acquired and subsequently transferred to third parties (including the Agencies) when the transfer meets the GAAP criteria for sale accounting, or through the direct acquisition of MSRs sold by third parties. Our MSRs are held and managed at Redwood Residential Acquisition Corporation, a wholly-owned subsidiary of RWT Holdings, Inc., which is a taxable REIT subsidiary of ours. We contract with licensed sub-servicers to perform servicing functions for loans associated with our MSRs. We have elected the fair value option for all of our MSRs, and they are initially recognized and carried at their estimated fair values. Servicing fee income from MSRs is recorded on a cash basis when received. Net servicing income and changes in the estimated fair value of MSRs are reported in MSR income (loss), net on our consolidated statements of income. See Note 9 for further discussion on MSRs.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include non-restricted cash and highly liquid investments with original maturities of three months or less. The Company maintains its cash and cash equivalents with major financial institutions. Accounts at these institutions are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 for each bank. The Company is exposed to credit risk for amounts held in excess of the FDIC limit. The Company does not anticipate nonperformance by these institutions
Restricted Cash	Restricted Cash Restricted cash primarily includes principal and interest payments that are collateral for, or payable to, owners of ABS issued by consolidated securitization entities as well as cash held in association with borrowings from the Federal Home Loan Bank of Chicago, and cash associated with our risk sharing transactions with the Agencies.
Accrued Interest Receivable	Accrued Interest Receivable Accrued interest receivable includes interest that is due and payable to us and deemed collectible. Cash interest is generally received within thirty days of recording the receivable. For financial assets where we have elected the fair value option, the associated accrued interest receivable on these assets is measured at fair value. For financial assets where we have not elected the fair value option, the associated accrued interest carrying values approximate fair values.
Derivative Financial Instruments	Derivative Financial Instruments Derivative financial instruments we typically utilize include swaps, swaptions, financial futures contracts, CMBX credit default index swaps, and “To Be Announced” (“TBA”) contracts. These derivatives are primarily used to manage interest rate risk associated with our operations. In addition, we enter into certain residential loan purchase commitments (“LPCs”) and residential loan forward sale commitments (“FSCs”) that are treated as derivatives for financial reporting purposes. All derivative financial instruments are recorded at their estimated fair value on our consolidated balance sheets. Derivatives with positive fair values to us are reported as assets and derivatives with negative fair values to us are reported as liabilities. We classify each derivative as either (i) a trading instrument (no specific hedging designation for financial reporting purposes) or (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). Changes in the fair values of derivatives accounted for as trading instruments, including any associated interest income or expense, are recorded in our consolidated statements of income through MSR income (loss), net if they are used to manage risks associated with our MSR investments or through mortgage banking and investment activities, net if they are used to manage risks associated with our residential and commercial mortgage banking activities or other residential investments. Valuation changes related to residential LPCs and FSCs are included in mortgage banking and investment activities, net on our consolidated statements of income. Changes in the fair values of derivatives accounted for as cash flow hedges, to the extent they are effective, are recorded in accumulated other comprehensive income, a component of equity on our consolidated balance sheets. Interest income or expense, and any ineffectiveness associated with these derivatives, are recorded as a component of net interest income in our consolidated statements of income. We measure the effective portion of cash flow hedges by comparing the change in fair value of the expected future variable cash flows of the derivative hedging instruments with the change in fair value of the expected future variable cash flows of the hedged item. We will discontinue a designated cash flow hedge relationship if (i) we determine that the hedging derivative is no longer expected to be effective in offsetting changes in the cash flows of the designated hedged item; (ii) the derivative expires or is sold, terminated, or exercised; (iii) the derivative is de-designated as a cash flow hedge; or (iv) it is probable that a forecasted transaction associated with the hedged item will not occur by the end of the originally specified time period. To the extent we de-designate or terminate a cash flow hedging relationship and the associated hedged item continues to exist, any unrealized gain or loss of the cash flow hedge at the time of de-designation remains in accumulated other comprehensive income and is amortized using the straight-line method through interest expense over the remaining life of the hedged item. Swaps and Swaptions Interest rate swaps are agreements in which (i) one counterparty exchanges a stream of fixed interest payments for another counterparty’s stream of variable interest cash flows; or (ii) each counterparty exchanges variable interest cash flows that are referenced to different indices. Interest rate swaptions are agreements that provide the owner the right but not the obligation to enter into an underlying interest rate swap with a counterparty in the future. We enter into swap and swaptions primarily to reduce significant changes in our income or equity caused by interest rate volatility. Certain of these interest rate agreements may be designated as cash flow hedges. Eurodollar Futures and Financial Futures Eurodollar futures are futures contracts on time deposits denominated in U.S. dollars at banks outside the United States. Eurodollar futures, unlike our other derivatives, have maturities of only three months. Therefore, in order to achieve the desired interest rate offset necessary to manage our risk, consecutively maturing contracts are required, resulting in a stated notional amount that is typically higher than our other derivatives. Financial futures are futures contracts on benchmark U.S. Treasury rates. TBA Contracts TBA contracts are forward contracts to purchase mortgage-backed securities that will be issued by a U.S. government sponsored enterprise in the future. We purchase or sell these derivatives to offset - to varying degrees - changes in the values of mortgage products for which we have exposure to interest rate volatility. CMBX Credit Default Index Swaps CMBX credit default index swaps are derivative instruments that reference an index reflecting the performance of specified tranches from selected commercial mortgage-backed securities (“CMBS”) transactions. Transacting in CMBX credit default index swaps enables us to hedge certain financial risks we are exposed to as we originate senior commercial mortgage loans in anticipation of the sale of these loans into CMBS transactions. Loan Purchase and Forward Sale Commitments We use the term LPCs to refer to agreements with third-party residential loan originators to purchase residential loans at a future date that qualify as a derivative under GAAP and we use the term FSCs to refer to agreements with third-parties to sell residential loans at a future date that also qualify as derivatives under GAAP. LPCs and FSCs are recorded at their estimated fair values on our consolidated balance sheets and changes in fair value are recurring and are reported through our consolidated statements of income in mortgage banking and investment activities, net. See Note 10 for further discussion on derivative financial instruments.
Deferred Tax Assets and Liabilities	Deferred Tax Assets and Liabilities Our deferred tax assets/liabilities are generated by temporary differences in GAAP and taxable income at our taxable subsidiaries. These differences generally reflect differing accounting treatments for GAAP and tax, such as accounting for mortgage servicing rights, discount and premium amortization, credit losses, asset impairments, and certain valuation estimates. As a result of these differences, we may recognize taxable income in periods prior to when we recognize income for GAAP. When this occurs, we pay the tax liability as required and establish a deferred tax asset. As the income is subsequently realized in future periods under GAAP, the deferred tax asset is reduced. We may also recognize GAAP income in periods prior to when we recognize income for tax. When this occurs, we establish a deferred tax liability for GAAP. As the income is subsequently realized in future periods for tax, the deferred tax liability is reduced. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider historical and projected future taxable income and capital gains as well as tax planning strategies in making this assessment. We determine the extent to which realization of this deferred asset is not assured and establish a valuation allowance accordingly. The estimate of net deferred tax assets could change in future periods to the extent that actual or revised estimates of future taxable income during the carryforward periods change from current expectations.
Deferred Securities Issuance Costs	Deferred Securities Issuance Costs Securities issuance costs are expenses associated with the issuance of long-term debt, and the ABS issued from the Residential Resecuritization, the Commercial Securitization, and Sequoia securitization entities we sponsor and consolidate for financial reporting purposes. These expenses typically include underwriting, rating agency, legal, accounting, and other fees. ABS issuance costs associated with liabilities reported at cost are deferred. Deferred securities issuance costs are reported on our consolidated balance sheets as deferred charges (an asset) and are amortized as an adjustment to interest expense using the interest method, based upon the actual and estimated repayment schedules of the related securities issued.
Other Assets and Other Liabilities	Other Assets and Other Liabilities Other assets primarily consists of margin receivable, pledged collateral, FHLBC stock, guarantee asset, REO, fixed assets, leasehold improvements, investment receivable, and prepaid expenses. Other liabilities primarily consists of accrued compensation, guarantee obligations, margin payable, and residential loan and MSR repurchase reserves. FHLBC Stock In accordance with its borrowing agreement with the FHLBC, our FHLB-member subsidiary is required to purchase and hold stock in the FHLBC in an amount equal to a specified percentage of outstanding advances. FHLBC stock is considered a non-marketable, long-term investment, and is carried at cost. Because this stock can only be redeemed or sold at its par value, and only to the FHLBC, carrying value, or cost, approximates fair value. Dividends received from FHLBC stock are recorded in other income, net in our consolidated statements of income. Margin Receivable and Payable Margin receivable and payable result from margin calls between us and our derivatives, master repurchase agreements, and warehouse facilities counterparties, whereby we or the counterparty were required to post collateral. Fannie Mae Risk-Sharing - Other Assets and Liabilities During 2014 and 2015, we entered into various risk-sharing arrangements with Fannie Mae and Freddie Mac. Under these arrangements, we committed to assume the first 1.00% or 2.25% (depending on the arrangement) of losses realized on reference pools of conforming residential mortgage loans that we acquired and then sold to the Agencies. As part of these risk sharing arrangements, during the 10 year term of our first Fannie Mae arrangement, we receive monthly cash payments from Fannie Mae based on the monthly outstanding unpaid principal balance of the reference pool of loans, and for our Freddie Mac and our new Fannie Mae arrangements, the Agencies charged us a reduced guarantee fee for the reference loans we delivered to them in exchange for mortgage backed securities, which we then sold. Under these arrangements we are required to pledge assets to the Agencies to collateralize our risk sharing commitments to them throughout the terms of the arrangements. These pledged assets are held by a third-party custodian for the benefit of the Agencies. To the extent approved losses are incurred, the custodian will transfer collateral to the Agencies. As a result of these transactions, we recorded “pledged collateral” in the other assets line item, and “guarantee obligations” in the other liabilities line item, on our consolidated balance sheets. In addition, for the first Fannie Mae transaction, we recorded a “guarantee asset” in the other assets line item on our consolidated balance sheets. The guarantee obligations represent our commitments to assume losses under these arrangements, which at inception were recorded at fair value based on the fair value of the guarantee asset in the case of the first Fannie Mae arrangement, and the additional proceeds received that were attributable to the reduced guarantee fees for the Freddie Mac and new Fannie Mae arrangements. We amortize the guarantee obligations over the 10 year terms of the arrangements based primarily on changes in the outstanding unpaid principal balance of loans in the reference pools, with a portion of the liabilities treated as a credit reserve that is not amortized into income. In addition, each period we assess the need for a separate loss allowance related to these arrangements, based on our estimate of credit losses inherent in the reference pools of loans. Income from cash payments received under the first Fannie Mae risk sharing arrangement and income related to the amortization of the guarantee obligations of all three arrangements are recorded in other income, and market valuation changes of the guarantee asset are recorded in mortgage banking and investment activities, net, on our consolidated statements of income. Our consolidated balance sheets include assets of the special purpose entities ("SPEs") associated with these risk sharing arrangements (i.e., the "pledged collateral" referred to above) that can only be used to settle obligations of these SPEs and liabilities of these SPEs for which the creditors of these SPEs (the Agencies) do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014 , assets of such SPEs totaled $63 million and $19 million , respectively, and liabilities of such SPEs totaled $25 million and $7 million , respectively. See Note 15 for further discussion on loss contingencies — risk sharing. REO REO property acquired through, or in lieu of, foreclosure is initially recorded at fair value, and subsequently reported at the lower of its carrying amount or fair value (less estimated cost to sell). Changes in the fair value of an REO property that has a fair value at or below its carrying amount are recorded in our consolidated statements of income as a component of other market valuation adjustments. Margin receivable reflects cash collateral we have posted with various counterparties relating to our derivative and lending agreements with those counterparties, as applicable. See Note 11 for further discussion on other assets.
Short-Term Debt	Short-Term Debt Short-term debt includes borrowings under master repurchase agreements, loan warehouse facilities, and other forms of borrowings that expire within one year with various counterparties. These borrowings may be unsecured or collateralized by cash, loans, or securities. If the value (as determined by the applicable counterparty) of the collateral securing those borrowings decreases, we may be subject to margin calls during the period the borrowings are outstanding. In instances where we do not satisfy the margin calls within the required time frame, the counterparty may retain the collateral and pursue any outstanding debt amount from us. See Note 12 for further discussion on short-term debt.
Accrued Interest Payable	Accrued Interest Payable Accrued interest payable includes interest that is due and payable to third parties. Interest is generally paid within one to three months of recording the payable, based upon our remittance requirements, and is paid semi-annually for our convertible and exchangeable debt. For borrowings where we have elected the fair value option, the associated accrued interest on these liabilities is measured at fair value. For financial liabilities where we have not elected the fair value option, the associated accrued interest carrying values approximate fair values.
Asset-Backed Securities Issued	Asset-Backed Securities Issued ABS issued represents asset-backed securities issued by bankruptcy-remote entities consolidated by Redwood. These include certain Sequoia entities, the Residential Resecuritization and the Commercial Securitization. Assets at these entities are held in the custody of securitization trustees and are not owned by Redwood. These trustees collect principal and interest payments (less servicing and related fees) from the assets and make corresponding principal and interest payments to the ABS investors. ABS issued are generally carried at their unpaid principal balances net of any unamortized discount or premium. Upon adoption of ASU 2014-13 on January 1, 2015, we began to account for the ABS issued under our consolidated Sequoia entities at fair value, with periodic changes in fair value recorded in mortgage banking and investment activities, net on our consolidated statements of income. See Note 13 for further discussion on ABS issued.
Long-Term Debt	Long-Term Debt FHLBC Borrowings FHLBC borrowings include amounts borrowed by our FHLB-member subsidiary, also referred to as “advances,” from the Federal Home Loan Bank of Chicago that are secured by eligible collateral, including, but not limited to, residential mortgage loans and residential mortgage-backed securities. FHLBC borrowings are carried at their unpaid principal balance and interest on advances is paid every 13 weeks from when each respective advance is made. If the value (as determined by the FHLBC) of the collateral securing those borrowings decreases, we may be subject to margin calls during the period the borrowings are outstanding. In instances where we do not satisfy the margin calls within the required time frame, the FHLBC may foreclose upon the collateral and pursue any outstanding debt amount from us. Commercial Secured Borrowings Commercial secured borrowings represent liabilities recognized in association with cash received from transfers of portions of senior commercial mortgage loans to third parties that did not meet the criteria for sale treatment under GAAP and were accounted for as financings. We elected the fair value option for these secured borrowings and they are held at their estimated fair value on our consolidated balance sheets. These amounts do not represent legal obligations of Redwood and we are not required to make interest payments on these borrowings. Convertible Notes Convertible notes include unsecured convertible and exchangeable debt that are carried at their unpaid principal balance. Interest on the notes is payable semiannually until such time the notes mature or are converted or exchanged into shares. If converted or exchanged by a holder, the holder of the notes would receive shares of our common stock. Trust Preferred Securities and Subordinated Notes Trust preferred securities and subordinated notes are carried at their unpaid principal balance. This long-term debt is unsecured and interest is paid quarterly until it is redeemed in whole or matures at a future date. See Note 14 for further discussion on long-term debt.
Equity	Equity Accumulated Other Comprehensive Income (Loss) Net unrealized gains and losses on real estate securities available-for-sale and interest rate agreements designated as cash flow hedges are reported as components of accumulated other comprehensive income on our consolidated statements of changes in stockholders' equity and our consolidated balance sheets. Net unrealized gains and losses on securities and interest rate agreements held by our taxable subsidiaries that are reported in other comprehensive income are adjusted for the effects of taxation and may create deferred tax assets or liabilities. Earnings Per Common Share Basic earnings per common share (“EPS”) is computed by dividing net income allocated to common shareholders by the weighted average common shares outstanding. Net income allocated to common shareholders represents net income less income allocated to participating securities (as described herein). Diluted EPS is computed by dividing income allocated to common shareholders by the weighted average common shares outstanding plus amounts representing the dilutive effect of share-based payment awards. In addition, if the assumed conversion or exchange of convertible or exchangeable debt into common shares is dilutive, diluted EPS is adjusted by adding back the periodic interest expense associated with dilutive convertible or exchangeable debt to net income and adding the shares issued in an assumed conversion or exchange to the diluted weighted average share count. The two-class method is an earnings allocation formula under which EPS is calculated for common stock and participating securities according to dividends declared and participating rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated between participating securities and common shares based on their respective rights to receive dividends or dividend equivalents. GAAP defines vested and unvested share-based payment awards containing nonforfeitable rights to dividends or dividend equivalents as participating securities that are included in computing EPS under the two-class method. See Note 16 for further discussion on equity.
Incentive Plans	Incentive Plans In May 2014, our shareholders approved the 2014 Redwood Trust, Inc. Incentive Plan (“Incentive Plan”) for executive officers, employees, and non-employee directors, which replaced the 2002 Redwood Trust, Inc. Incentive Plan. The Incentive Plan provides for the grant of restricted stock, deferred stock, deferred stock units, performance-based awards (including performance stock units), dividend equivalents, stock payments, restricted stock units, and other types of awards to eligible participants. Long-term incentive awards granted under the Incentive Plan generally vest over a three - or four -year period. Awards made under the Incentive Plan to officers and other employees in lieu of the payment in cash of a portion of annual bonuses earned generally vest immediately, but are subject to a three -year mandatory holding period. Deferred stock units and restricted stock have attached dividend equivalent rights, resulting in the payment of dividend equivalents each time we pay a common stock dividend. Non-employee directors are also provided annual awards under the Incentive Plan that generally vest immediately. The cost of the awards is amortized over the vesting period on a straight-line basis. Employee Stock Purchase Plan In May 2013, our shareholders approved an amendment to our previously amended 2002 Redwood Trust, Inc. Employee Stock Purchase Plan (“ESPP”) to increase the number of shares available under the ESPP. The purpose of the ESPP is to give our employees an opportunity to acquire an equity interest in the Company through the purchase of shares of common stock at a discount. The ESPP allows eligible employees to purchase common stock at 85% of its fair value, subject to certain limits. Fair value as defined under the ESPP is the lesser of the closing market price of the common stock on the first day of the calendar year or the last day of the calendar quarter. Executive Deferred Compensation Plan In November 2013, our Board of Directors approved an amendment to our 2002 Executive Deferred Compensation Plan (“EDCP”) to allow non-employee directors to defer certain cash payments and dividends into DSUs. The EDCP allows eligible employees and directors to defer portions of current salary and certain other forms of compensation. The Company matches some deferrals. Compensation deferred under the EDCP is recorded as a liability on our consolidated balance sheets. The EDCP allows for the investment of deferrals in either an interest crediting account or DSUs. 401(k) Plan We offer a tax-qualified 401(k) Plan to all employees for retirement savings. Under this Plan, employees are allowed to defer and invest up to 100% of their cash earnings, subject to the maximum 401(k) Plan contribution limit set forth by the Internal Revenue Service. We match some employee contributions to encourage participation and to provide a retirement planning benefit to employees. Plan matching contributions made by the Company for the years ended December 31, 2015 , 2014 , and 2013 were $0.8 million , $0.6 million , and $0.2 million , respectively. Vesting of the 401(k) Plan matching contributions is based on the employee’s tenure at the Company, and over time an employee becomes increasingly vested in matching contributions. See Note 17 for further discussion on equity compensation plans.
Taxes	Taxes We have elected to be taxed as a REIT under the Internal Revenue Code and the corresponding provisions of state law. To qualify as a REIT we must distribute at least 90% of our annual REIT taxable income to shareholders (not including taxable income retained in our taxable subsidiaries) within the time frame set forth in the tax code and also meet certain other requirements related to assets, income, and stock ownership. We assess our tax positions for all open tax years and record tax benefits only if tax positions meet a more-likely-than-not threshold in accordance with GAAP guidance on accounting for uncertain tax positions. We classify interest and penalties on material uncertain tax positions as interest expense and operating expense, respectively, in our consolidated statements of income. See Note 20 for further discussion on taxes.
Recent Accounting Pronouncements	Other Recent Accounting Pronouncements In January 2016, the FASB issued ASU 2016-01,"Recognition and Measurement of Financial Assets and Financial Liabilities." This new guidance amends accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. This new guidance also amends certain disclosure requirements associated with the fair value of financial instruments and it is effective for fiscal years beginning after December 15, 2017. We are currently evaluating the impact that this update will have on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud-Computing Arrangement.” This new guidance provides additional guidance on accounting for fees paid in a cloud-computing arrangement that contains a software license. This new guidance is effective for fiscal years beginning after December 15, 2015. Early adoption is allowed. We plan to adopt this new guidance by the required date and we do not believe the adoption of this new guidance will have a material impact on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” This new guidance requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. This new guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The new guidance is required to be applied on a retrospective basis. We plan to adopt this new guidance by the required date and will reclassify our deferred securities issuance costs that we currently present on the face of our consolidated balance sheets and present them as debt discounts. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) - Amendments to the Consolidation Analysis.” This new guidance provides a new scope exception for certain money market funds, makes targeted amendments to the current consolidation guidance, and ends the deferral granted to investment companies from applying the VIE guidance. This new guidance is effective for annual periods beginning after December 15, 2015. Early adoption is allowed, including in any interim period. We plan to adopt this new guidance by the required date and we do not believe the adoption of this new guidance will have a material impact on our consolidated financial statements. In June 2014, the FASB issued ASU 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” This new guidance amends the accounting guidance for “repo-to-maturity” transactions and repurchase agreements executed as repurchase financings. In addition, the new standard requires a transferor to disclose more information about certain transactions, including those in which it retains substantially all of the exposure to the economic returns of the underlying transferred asset over the transaction’s term. This new guidance is effective in the first interim reporting period beginning after December 15, 2014. However, for repurchase and securities lending transactions reported as secured borrowings, the new standard’s enhanced disclosures are effective for annual periods beginning after December 15, 2014 and interim periods beginning after March 15, 2015. We adopted the new guidance, as required, in the first quarter of 2015 and adopted the disclosure requirements in the second quarter of 2015, as required, which are included in Note 12 of these notes to our consolidated financial statements. The adoption in the first quarter of 2015 did not have a material impact on our consolidated financial statements, as we did not have repo-to-maturity transactions outstanding. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” The update modifies the guidance companies use to recognize revenue from contracts with customers for transfers of goods or services and transfers of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance also requires new qualitative and quantitative disclosures, including information about contract balances and performance obligations. In July 2015, the FASB approved a one year deferral of the effective date. Accordingly, the update is effective for us in the first quarter of 2018 with retrospective application to prior periods presented or as a cumulative effect adjustment in the period of adoption. Early adoption is permitted in the first quarter of 2017. We are evaluating the impact the update will have on our consolidated financial statements. In January 2014, the FASB issued ASU 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” This update to the receivable guidance clarifies when a creditor is considered to have received physical possession of residential real estate resulting from an in substance repossession or foreclosure. In addition, the amendments require disclosure of both: (i) the amount of foreclosed residential real estate property held by the creditor; and (ii) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure. The update requires the guidance to be applied using either a modified retrospective transition method or a prospective transition method for interim and annual periods beginning after December 15, 2014, with early adoption permitted. We adopted this standard in the first quarter of 2015, as required, and it did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements Adoption of ASU 2014-13 In November 2014, the FASB issued ASU 2014-13, “Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity” ("ASU 2014-13"). This update provides a measurement alternative to companies that consolidate collateralized financing entities ("CFEs"). Under the new guidance, companies can measure both the financial assets and financial liabilities of a CFE using the more observable of the fair value of the financial assets or fair value of the financial liabilities. This guidance is effective in the first quarter 2016 with early adoption permitted at the beginning of an annual period. The guidance can be applied either retrospectively to all relevant prior periods or by a modified retrospective approach with a cumulative-effect adjustment to equity as of the beginning of the annual period of adoption. On January 1, 2015, we elected to early adopt ASU 2014-13, as we determined this measurement alternative more accurately reflects our economic interests in, and financial results from, certain consolidated financing entities. We adopted the measurement alternative under this standard only for our consolidated Sequoia entities, which qualify under the standard as CFEs. We did not elect the measurement alternative for our Residential Resecuritization or our Commercial Resecuritization. Under the provisions of ASU 2014-13, we use the fair value of the liabilities issued by the Sequoia CFEs (which we determined to be more observable) to determine the fair value of the assets, whereby the net assets we consolidate in our financial statements related to these entities represent the estimated fair value of our retained interests in the Sequoia CFEs. Similarly, the periodic net market valuation adjustments we record on our consolidated income statement from the consolidated assets and liabilities of the CFEs represent the change in fair value of our retained interests in the Sequoia CFEs. Using the modified retrospective approach, we recorded a cumulative-effect adjustment to equity of $10 million through retained earnings as of January 1, 2015. This cumulative-effect adjustment represents the net effect of adjusting the assets and liabilities of the Sequoia CFEs from amortized historical cost to fair value. Subsequent to the adoption of ASU 2014-13, the consolidated assets and liabilities of the Sequoia CFEs are both carried at fair value, with the periodic net changes in fair value recorded on our consolidated income statement, in mortgage banking and investment activities, net. The following table presents the assets and liabilities of the consolidated Sequoia entities at December 31, 2014 prior to the adoption of ASU 2014-13, the adjustments required to adopt the new standard, and the adjusted balances at January 1, 2015.
Balance Sheet Netting	Balance Sheet Netting Certain of our derivatives and short-term debt are subject to master netting arrangements or similar agreements. Under GAAP, in certain circumstances we may elect to present certain financial assets, liabilities and related collateral subject to master netting arrangements in a net position on our consolidated balance sheets. However, we do not report any of these financial assets or liabilities on a net basis, and instead present them on a gross basis on our consolidated balance sheets. The table below presents financial assets and liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with corresponding financial instruments and corresponding collateral received or pledged at December 31, 2015 and December 31, 2014 . Table 3.2 – Offsetting of Financial Assets, Liabilities, and Collateral Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Consolidated Balance Sheet Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet Gross Amounts Not Offset in Consolidated (1) Net Amount December 31, 2015 Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 7,781 $ — $ 7,781 $ (5,651 ) $ (1,917 ) $ 213 Credit default index swaps 1,207 — 1,207 — (720 ) 487 TBAs 2,734 — 2,734 (1,898 ) (293 ) 543 Total Assets $ 11,722 $ — $ 11,722 $ (7,549 ) $ (2,930 ) $ 1,243 Liabilities (2) Interest rate agreements $ (58,366 ) $ — $ (58,366 ) $ 5,651 $ 52,715 $ — TBAs (2,519 ) — (2,519 ) 1,898 7 (614 ) Futures (445 ) — (445 ) — 445 — Loan warehouse debt (1,023,740 ) — (1,023,740 ) 1,023,740 — — Security repurchase agreements (693,641 ) — (693,641 ) 693,641 — — Total Liabilities $ (1,778,711 ) $ — $ (1,778,711 ) $ 1,724,930 $ 53,167 $ (614 ) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Consolidated Balance Sheet Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet Gross Amounts Not Offset in Consolidated (1) Net Amount December 31, 2014 Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 7,006 $ — $ 7,006 $ (1,160 ) $ (4,360 ) $ 1,486 Credit default index swaps 1,598 — 1,598 — (375 ) 1,223 TBAs 6,653 — 6,653 (5,815 ) — 838 Total Assets $ 15,257 $ — $ 15,257 $ (6,975 ) $ (4,735 ) $ 3,547 Liabilities (2) Interest rate agreements $ (48,173 ) $ — $ (48,173 ) $ 1,160 $ 47,013 $ — TBAs (9,506 ) — (9,506 ) 5,815 2,715 (976 ) Futures (372 ) — (372 ) — 372 — Loan warehouse debt (1,185,316 ) — (1,185,316 ) 1,185,316 — — Security repurchase agreements (608,509 ) — (608,509 ) 608,509 — — Total Liabilities $ (1,851,876 ) $ — $ (1,851,876 ) $ 1,800,800 $ 50,100 $ (976 ) (1) Amounts presented in these columns are limited in total to the net amount of assets or liabilities presented in the prior column by instrument. In certain cases, there is excess cash collateral or financial assets we have pledged to a counterparty (which may, in certain circumstances, be a clearinghouse) that exceed the financial liabilities subject to a master netting arrangement or similar agreement. Additionally, in certain cases, counterparties may have pledged excess cash collateral to us that exceeds our corresponding financial assets. In each case, any of these excess amounts are excluded from the table although they are separately reported in our consolidated balance sheets as assets or liabilities, respectively. (2) Interest rate agreements, TBAs, and futures are components of derivatives instruments on our consolidated balances sheets. Loan warehouse debt, which is secured by residential and commercial mortgage loans, and security repurchase agreements are components of short-term debt on our consolidated balance sheets. For each category of financial instrument set forth in the table above, the assets and liabilities resulting from individual transactions within that category between us and a counterparty are subject to a master netting arrangement or similar agreement with that counterparty that provides for individual transactions to be aggregated and treated as a single transaction. For certain categories of these instruments, some of our transactions are cleared and settled through one or more clearinghouses that are substituted as our counterparty. References herein to master netting arrangements or similar agreements include the arrangements and agreements governing the clearing and settlement of these transactions through the clearinghouses. In the event of the termination and close-out of any of those transactions, the corresponding master netting agreement or similar agreement provides for settlement on a net basis. Any such settlement would include the proceeds of the liquidation of any corresponding collateral, subject to certain limitations on termination, settlement, and liquidation of collateral that may apply in the event of the bankruptcy or insolvency of a party. Such limitations should not inhibit the eventual practical realization of the principal benefits of those transactions or the corresponding master netting arrangement or similar agreement and any corresponding collateral.

Principles of Consolidation (Ta

Principles of Consolidation (Tables)	12 Months Ended
	Dec. 31, 2015
Variable Interest Entity [Line Items]
Securitization Activity Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents information related to securitization transactions that occurred during the year s ended December 31, 2015 and 2014 . Table 4.2 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Years Ended December 31, (In Thousands) 2015 2014 Principal balance of loans transferred $ 1,375,532 $ 1,324,419 Trading securities retained, at fair value 252,222 77,160 AFS securities retained, at fair value 7,852 78,218 MSRs recognized 8,202 8,518
Cash Flows Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table summarizes the cash flows during the years ended December 31, 2015 and 2014 between us and the unconsolidated VIEs sponsored by us. Table 4.3 – Cash Flows Related to Unconsolidated VIEs Sponsored by Redwood Years Ended December 31, (In Thousands) 2015 2014 Proceeds from new transfers $ 1,139,052 $ 1,201,411 MSR fees received 14,874 13,812 Funding of compensating interest (363 ) (227 ) Cash flows received on retained securities 43,460 56,870
MSR Assumptions Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents the key weighted average assumptions used to measure MSRs and securities retained at the date of securitization. Table 4.4 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Year Ended December 31, 2015 Year Ended December 31, 2014 At Date of Securitization MSRs Senior Securities Subordinate Securities MSRs Senior Securities Subordinate Securities Prepayment rate 5 % - 15 % 8 % - 10 % 8 % - 10 % 5 % - 16 % 8 % - 10 % 8 % - 10 % Discount rates 11 % 3 % 6 % 11 % 3 % 5 % Credit loss assumptions N/A 0.10 % - 0.25 % 0.10 % - 0.25 % N/A 0.25 % 0.25 %
Unconsolidated Variable Interest Entity's Sponsored by Redwood Summary	The following table presents additional information at December 31, 2015 and December 31, 2014 , related to unconsolidated securitizations accounted for as sales since 2012. Table 4.5 – Unconsolidated VIEs Sponsored by Redwood (In Thousands) December 31, 2015 December 31, 2014 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 258,697 $ 93,802 Senior and subordinate securities, classified as AFS 272,715 460,990 Mortgage servicing rights 56,984 56,801 Maximum loss exposure (1) $ 588,396 $ 611,593 Assets transferred: Principal balance of loans outstanding $ 7,318,167 $ 7,276,825 Principal balance of delinquent loans 30+ days delinquent 18,300 17,022 (1) Maximum loss exposure from our involvement with unconsolidated VIEs pertains to the carrying value of our securities and MSRs retained from these VIEs and represents estimated losses that would be incurred under severe, hypothetical circumstances, such as if the value of our interests and any associated collateral declines to zero. This does not include, for example, any potential exposure to representation and warranty claims associated with our initial transfer of loans into a securitization.
Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents key economic assumptions for assets retained from unconsolidated VIEs and the sensitivity of their fair values to immediate adverse changes in those assumptions at December 31, 2015 and December 31, 2014 . Table 4.6 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood December 31, 2015 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair Value at December 31, 2015 $ 56,984 $ 248,570 $ 282,842 Expected life (in years) (2) 7 5 12 Prepayment speed assumption (annual CPR) (2) 11 % 10 % 12 % Decrease in fair value from: 10% adverse change $ 2,868 $ 2,042 $ 901 25% adverse change 6,119 4,810 2,278 Discount rate assumption (2) 11 % 5 % 6 % Decrease in fair value from: 100 basis point increase $ 2,711 $ 10,029 $ 21,981 200 basis point increase 4,745 19,365 41,156 Credit loss assumption (2) N/A 0.25 % 0.25 % Decrease in fair value from: 10% higher losses N/A $ 35 $ 1,244 25% higher losses N/A 86 3,129 December 31, 2014 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair Value at December 31, 2014 $ 56,801 $ 93,802 $ 460,990 Expected life (in years) (2) 7 6 10 Prepayment speed assumption (annual CPR) (2) 14 % 9 % 10 % Decrease in fair value from: 10% adverse change $ 2,419 $ 3,999 $ 684 25% adverse change 5,639 9,475 2,355 Discount rate assumption (2) 11 % 8 % 5 % Decrease in fair value from: 100 basis point increase $ 2,104 $ 4,214 $ 34,149 200 basis point increase 4,102 8,091 64,474 Credit loss assumption (2) N/A 0.25 % 0.25 % Decrease in fair value from: 10% higher losses N/A $ 126 $ 3,169 25% higher losses N/A 299 7,841 (1) Senior securities include $31 million and $88 million of interest only securities at December 31, 2015 and December 31, 2014 , respectively. (2) Expected life, prepayment speed assumption, discount rate assumption, and credit loss assumption presented in the tables above represent weighted averages.
Loan Transfers Accounted for as Secured Borrowings	The following table presents a summary of our interests in third-party VIEs at December 31, 2015 , grouped by security type. Table 4.7 – Third-Party Sponsored VIE Summary (Dollars in Thousands) December 31, 2015 Residential Mortgage Backed Securities Senior $ 285,033 Re-REMIC 165,064 Subordinate 251,748 Total Investments in Third-Party Sponsored VIEs $ 701,845
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Schedule of Variable Interest Entities	The following table presents a summary of the assets and liabilities of these VIEs. Intercompany balances have been eliminated for purposes of this presentation. Table 4.1 – Assets and Liabilities of Consolidated VIEs December 31, 2015 Sequoia Entities Residential Resecuritization Commercial Securitization Total (Dollars in Thousands) Residential loans, held-for-investment $ 1,021,870 $ — $ — $ 1,021,870 Commercial loans, held-for-investment — — 166,016 166,016 Real estate securities — — — — Restricted cash 228 — 137 365 Accrued interest receivable 1,131 — 1,297 2,428 Other assets 4,895 — — 4,895 Total Assets $ 1,028,124 $ — $ 167,450 $ 1,195,574 Accrued interest payable $ 555 $ — $ 249 $ 804 Accrued expenses and other liabilities 100 — — 100 Asset-backed securities issued 996,820 — 53,137 1,049,957 Total Liabilities $ 997,475 $ — $ 53,386 $ 1,050,861 Number of VIEs 21 — 1 22 December 31, 2014 Sequoia Residential Commercial Total (Dollars in Thousands) Residential loans, held-for-investment $ 1,474,386 $ — $ — $ 1,474,386 Commercial loans, held-for-investment — — 194,991 194,991 Real estate securities, at fair value — 221,676 — 221,676 Restricted cash 147 43 137 327 Accrued interest receivable 2,359 477 1,511 4,347 Other assets 4,411 — 70 4,481 Total Assets $ 1,481,303 $ 222,196 $ 196,709 $ 1,900,208 Accrued interest payable $ 976 $ 5 $ 390 $ 1,371 Asset-backed securities issued 1,416,762 45,044 83,313 1,545,119 Total Liabilities $ 1,417,738 $ 45,049 $ 83,703 $ 1,546,490 Number of VIEs 24 1 1 26

Summary of Significant Accoun33

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	The following table presents the assets and liabilities of the consolidated Sequoia entities at December 31, 2014 prior to the adoption of ASU 2014-13, the adjustments required to adopt the new standard, and the adjusted balances at January 1, 2015. Table 3.1 – Impact of Adoption of ASU 2014-13 on Balance Sheet (1) (In Millions) December 31, 2014 ASU 2014-13 Adjustment January 1, 2015 Loan Principal $ 1,486 $ — $ 1,486 Loan unamortized premium 13 (13 ) — Allowance for loan losses (21 ) 21 — Loan market valuation adjustment — (113 ) (113 ) Residential loans held-for-investment 1,478 (105 ) 1,373 Deferred bond issuance costs 1 (1 ) — Other assets 5 — 5 Total assets 1,482 (105 ) 1,377 ABS issued principal 1,428 — 1,428 ABS issued unamortized discount (10 ) 10 — ABS market valuation adjustment — (125 ) (125 ) Total liabilities 1,418 (115 ) 1,303 Redwood's investment in consolidated Sequoia entities $ 64 $ 10 $ 74 (1) Certain totals may not foot due to rounding.
Offsetting of Financial Assets, Liabilities, and Collateral	The table below presents financial assets and liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with corresponding financial instruments and corresponding collateral received or pledged at December 31, 2015 and December 31, 2014 . Table 3.2 – Offsetting of Financial Assets, Liabilities, and Collateral Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Consolidated Balance Sheet Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet Gross Amounts Not Offset in Consolidated (1) Net Amount December 31, 2015 Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 7,781 $ — $ 7,781 $ (5,651 ) $ (1,917 ) $ 213 Credit default index swaps 1,207 — 1,207 — (720 ) 487 TBAs 2,734 — 2,734 (1,898 ) (293 ) 543 Total Assets $ 11,722 $ — $ 11,722 $ (7,549 ) $ (2,930 ) $ 1,243 Liabilities (2) Interest rate agreements $ (58,366 ) $ — $ (58,366 ) $ 5,651 $ 52,715 $ — TBAs (2,519 ) — (2,519 ) 1,898 7 (614 ) Futures (445 ) — (445 ) — 445 — Loan warehouse debt (1,023,740 ) — (1,023,740 ) 1,023,740 — — Security repurchase agreements (693,641 ) — (693,641 ) 693,641 — — Total Liabilities $ (1,778,711 ) $ — $ (1,778,711 ) $ 1,724,930 $ 53,167 $ (614 ) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Consolidated Balance Sheet Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet Gross Amounts Not Offset in Consolidated (1) Net Amount December 31, 2014 Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 7,006 $ — $ 7,006 $ (1,160 ) $ (4,360 ) $ 1,486 Credit default index swaps 1,598 — 1,598 — (375 ) 1,223 TBAs 6,653 — 6,653 (5,815 ) — 838 Total Assets $ 15,257 $ — $ 15,257 $ (6,975 ) $ (4,735 ) $ 3,547 Liabilities (2) Interest rate agreements $ (48,173 ) $ — $ (48,173 ) $ 1,160 $ 47,013 $ — TBAs (9,506 ) — (9,506 ) 5,815 2,715 (976 ) Futures (372 ) — (372 ) — 372 — Loan warehouse debt (1,185,316 ) — (1,185,316 ) 1,185,316 — — Security repurchase agreements (608,509 ) — (608,509 ) 608,509 — — Total Liabilities $ (1,851,876 ) $ — $ (1,851,876 ) $ 1,800,800 $ 50,100 $ (976 ) (1) Amounts presented in these columns are limited in total to the net amount of assets or liabilities presented in the prior column by instrument. In certain cases, there is excess cash collateral or financial assets we have pledged to a counterparty (which may, in certain circumstances, be a clearinghouse) that exceed the financial liabilities subject to a master netting arrangement or similar agreement. Additionally, in certain cases, counterparties may have pledged excess cash collateral to us that exceeds our corresponding financial assets. In each case, any of these excess amounts are excluded from the table although they are separately reported in our consolidated balance sheets as assets or liabilities, respectively. (2) Interest rate agreements, TBAs, and futures are components of derivatives instruments on our consolidated balances sheets. Loan warehouse debt, which is secured by residential and commercial mortgage loans, and security repurchase agreements are components of short-term debt on our consolidated balance sheets.

Fair Value of Financial Instr34

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Carrying Values and Estimated Fair Values of Assets and Liabilities	The following table presents the carrying values and estimated fair values of assets and liabilities that are required to be recorded or disclosed at fair value at December 31, 2015 and December 31, 2014 . Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities December 31, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value (In Thousands) Assets Residential loans, held-for-sale At fair value $ 1,114,305 $ 1,114,305 $ 1,341,032 $ 1,341,032 At lower of cost or fair value 1,433 1,635 1,488 1,669 Residential loans, held-for-investment (1) At fair value 2,813,065 2,813,065 581,668 581,668 At amortized cost — — 1,474,386 1,381,918 Commercial loans, held-for-sale 39,141 39,141 166,234 166,234 Commercial loans, held-for-investment At fair value 67,657 67,657 71,262 71,262 At amortized cost 295,849 300,824 329,431 334,876 Trading securities 404,011 404,011 111,606 111,606 Available-for-sale securities 829,245 829,245 1,267,624 1,267,624 MSRs 191,976 191,976 139,293 139,293 Cash and cash equivalents 220,229 220,229 269,730 269,730 Restricted cash 5,567 5,567 628 628 Accrued interest receivable 23,290 23,290 18,222 18,222 Derivative assets 16,393 16,393 16,417 16,417 REO (2) 4,896 5,282 4,391 4,703 Margin receivable (2) 83,191 83,191 65,374 65,374 FHLBC stock (2) 34,437 34,437 10,688 10,688 Guarantee asset (2) 5,697 5,697 7,201 7,201 Pledged collateral (2) 53,600 53,600 9,927 9,927 Liabilities Short-term debt $ 1,855,003 $ 1,855,003 $ 1,793,825 $ 1,793,825 Accrued interest payable 8,936 8,936 8,502 8,502 Margin payable 6,415 6,415 6,455 6,455 Guarantee obligation 22,704 22,702 7,201 7,201 Derivative liabilities 62,794 62,794 58,331 58,331 ABS issued (1) Fair value 996,820 996,820 — — Amortized cost 53,137 53,137 1,545,119 1,446,605 FHLBC long-term borrowings 1,343,023 1,343,023 495,860 495,860 Commercial secured borrowings 63,152 63,152 66,707 66,707 Convertible notes 492,500 461,053 492,500 492,188 Other long-term debt 139,500 83,700 139,500 101,835 (1) Upon adoption of ASU 2014-13 on January 1, 2015, we began to record loans held-for-investment in, and ABS issued by, consolidated Sequoia entities at fair value. See Note 3 for further discussion. (2) These assets are included in other assets on our consolidated balance sheets.
Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table presents the assets and liabilities that are reported at fair value on our consolidated balance sheets on a recurring basis at December 31, 2015 and December 31, 2014 , as well as the fair value hierarchy of the valuation inputs used to measure fair value. Table 5.2 – Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2015 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 3,927,370 $ — $ 129,819 $ 3,797,551 Commercial loans 106,798 — — 106,798 Trading securities 404,011 — — 404,011 Available-for-sale securities 829,245 — — 829,245 Derivative assets 16,393 2,734 8,988 4,671 MSRs 191,976 — — 191,976 Pledged collateral 53,600 53,600 — — FHLBC stock 34,437 — 34,437 — Guarantee asset 5,697 — — 5,697 Liabilities Derivative liabilities 62,794 2,963 58,368 1,463 Commercial secured borrowings 63,152 — — 63,152 ABS issued 996,820 — — 996,820 December 31, 2014 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 1,922,700 $ — $ 244,716 $ 1,677,984 Commercial loans 237,496 — — 237,496 Trading securities 111,606 — — 111,606 Available-for-sale securities 1,267,624 — — 1,267,624 Derivative assets 16,417 6,654 8,603 1,160 MSRs 139,293 — — 139,293 Pledged collateral 9,927 9,927 — — FHLBC Stock 10,688 — 10,688 — Guarantee asset 7,201 — — 7,201 Liabilities Derivative liabilities 58,331 9,878 48,412 41 Commercial secured borrowings 66,707 — — 66,707
Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table presents additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2015 and December 31, 2014 . Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets Liabilities Residential Loans Commercial Loans Trading Securities AFS Securities MSRs Guarantee Asset Derivatives (1) Commercial Secured Borrowings ABS Issued (In Thousands) Beginning balance - December 31, 2014 $ 1,677,984 $ 237,496 $ 111,606 $ 1,267,624 $ 139,293 $ 7,201 $ 1,119 $ 66,707 $ — Transfer to FVO (2) 1,370,699 — — — — — — — 1,302,216 Acquisitions 5,231,532 617,519 399,990 33,370 95,281 — — — — Sales (3,857,807 ) (754,636 ) (83,038 ) (366,373 ) (18,206 ) — — — (1,362 ) Principal paydowns (612,473 ) (780 ) (7,245 ) (131,387 ) — — — (593 ) (312,800 ) Gains (losses) in net income, net (6,071 ) 7,199 (17,302 ) 72,612 (24,392 ) (1,377 ) 60,823 (3,011 ) 8,366 Unrealized losses in OCI, net — — — (46,961 ) — — — — — Other settlements, net (3) (6,313 ) — — 360 — (127 ) (58,734 ) 49 400 Ending balance - December 31, 2015 $ 3,797,551 $ 106,798 $ 404,011 $ 829,245 $ 191,976 $ 5,697 $ 3,208 $ 63,152 $ 996,820 Assets Liabilities (In Thousands) Residential Loans Commercial Loans Trading Securities AFS Securities MSRs Guarantee Asset Derivatives (1) Commercial Secured Borrowings Beginning balance - December 31, 2013 $ 391,100 $ 89,111 $ 124,555 $ 1,558,306 $ 64,824 $ — $ (379 ) $ — Acquisitions 5,020,988 937,594 81,545 237,499 95,550 7,201 — 65,048 Sales (3,746,417 ) (807,931 ) (64,393 ) (440,361 ) — — — — Principal paydowns (42,657 ) (4,157 ) (5,934 ) (168,308 ) — — — (374 ) Amortization income — — — 32,774 — — — — Gains (losses) in net income, net 56,835 22,824 (24,167 ) 23,412 (21,081 ) — 14,527 2,033 Unrealized gains in OCI, net — — — 24,302 — — — — Other settlements, net (3) (1,865 ) 55 — — — — (13,029 ) — Ending balance - December 31, 2014 $ 1,677,984 $ 237,496 $ 111,606 $ 1,267,624 $ 139,293 $ 7,201 $ 1,119 $ 66,707 (1) For the purpose of this presentation, derivative assets and liabilities, which consist of loan purchase commitments, are presented on a net basis. (2) Upon adoption of ASU 2014-13 on January 1, 2015, loans held-for-investment in, and ABS issued by, consolidated financial entities are now recorded at fair value. See Note 3 for further discussion. (3) Other settlements, net for derivatives represents the transfer of the fair value of loan purchase commitments at the time loans are acquired to the basis of residential loans.
Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held and Included in Net Income	The following table presents the portion of gains or losses included in our consolidated statements of income that were attributable to Level 3 assets and liabilities recorded at fair value on a recurring basis and held at December 31, 2015 , 2014 , and 2013 . Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the years ended December 31, 2015 , 2014 , and 2013 are not included in this presentation. Table 5.4 – Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held at December 31, 2015 , 2014 , and 2013 Included in Net Income Included in Net Income Years Ended December 31, (In Thousands) 2015 2014 2013 Assets Residential loans at Redwood $ (5,541 ) $ 16,512 $ (290 ) Residential loans at consolidated Sequoia entities 7,422 — — Commercial loans (2,620 ) 3,357 1,501 Trading securities (13,391 ) (25,216 ) 32,496 Available-for-sale securities (246 ) (434 ) (1,108 ) MSRs (3,471 ) (15,239 ) 14,196 Loan purchase commitments 4,252 1,119 — Guarantee asset (1,504 ) — — Liabilities Loan purchase commitments $ — $ — $ (379 ) Commercial secured borrowing 3,011 2,033 — ABS issued (8,366 ) — —
Assets and Liabilities Measured at Fair Value on Non-Recurring Basis	The following table presents information on assets recorded at fair value on a non-recurring basis at December 31, 2015 and December 31, 2014 . This table does not include the carrying value and gains or losses associated with the asset types below that were not recorded at fair value on our balance sheet at December 31, 2015 and December 31, 2014 . Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Gain (Loss) for Year Ended December 31, 2015 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2015 Assets Residential loans, at lower of cost or fair value $ 1,096 $ — $ — $ 1,096 $ 3 REO 2,395 — — 2,395 (764 ) Liabilities Guarantee obligation 4,414 — — 4,414 — Gain (Loss) for Year Ended December 31, 2014 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2014 Assets Residential loans, at lower of cost or fair value $ 1,104 $ — $ — $ 1,104 $ (1 ) REO 2,069 — — 2,069 (320 ) Liabilities Guarantee obligation 7,201 — — 7,201 —
Market Valuation Adjustments	The following table presents the net market valuation gains and losses recorded in each line item of our consolidated statements of income for the years ended December 31, 2015 , 2014 , and 2013 . Table 5.6 – Market Valuation Gains and Losses, Net Years Ended December 31, (In Thousands) 2015 2014 2013 Mortgage banking and investment activities, net Residential loans held-for-sale, at fair value $ 3,712 $ 51,312 $ (10,455 ) Residential loan purchase and forward sale commitments 50,234 13,891 (399 ) Residential loans held-for-investment at fair value, at Redwood (6,337 ) (697 ) — Consolidated Sequoia entities (1) (1,192 ) (894 ) (612 ) Commercial loans, at fair value (2) 10,265 20,788 8,694 Trading securities (17,279 ) (24,197 ) 38,926 Impairments on AFS securities (246 ) (565 ) (1,833 ) Risk management derivatives, net (52,146 ) (38,959 ) 51,385 Guarantee asset (1,504 ) — — Other investments (382 ) 104 — Total mortgage banking and investment activities, net (3) $ (14,875 ) $ 20,783 $ 85,706 MSR Income (loss), net MSRs $ (24,392 ) $ (21,081 ) $ 11,995 Risk management derivatives, net (12,708 ) — — Total MSR income (loss), net (4) $ (37,100 ) $ (21,081 ) $ 11,995 Total market valuation gains and losses, net $ (51,975 ) $ (298 ) $ 97,701 (1) On January 1, 2015, we adopted ASU 2014-13 and began to record the assets and liabilities of consolidated Sequoia entities at fair value. This amount includes the net change in fair value of the consolidated assets and liabilities of these entities, which include residential loans held-for-investment, REO, and ABS issued. This combined amount represents the estimated change in value of our retained interests in these entities. See Note 3 for further discussion. (2) Commercial loans at fair value does not include commercial A-notes, which were sold in 2014, but did not qualify for sale treatment under GAAP. The market valuation gains and losses on the commercial A-notes and associated commercial secured borrowings net to zero in each period presented. (3) Mortgage banking and investment activities, net presented above does not include fee income or provisions for repurchases that are components of mortgage banking and investment activities, net presented on our consolidated statements of income, as these amounts do not represent market valuation changes. (4) MSR Income (loss), net presented above does not include net fee income or provisions for repurchases that are components of MSR Income (loss), net on our consolidated statements of income, as these amounts do not represent market valuation adjustments.
Quantitative Information about Significant Unobservable Inputs Used in Valuation of Level 3 Assets and Liabilities Measured at Fair Value	The following table provides quantitative information about the significant unobservable inputs used in the valuation of our Level 3 assets and liabilities measured at fair value. Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments December 31, 2015 Fair Value Weighted Average (Dollars in Thousands, except input values) Unobservable Input Range Assets Residential loans, at fair value: Jumbo fixed rate loans $ 1,936,062 Whole loan spread to TBA price $ 3.10 - $ 4.53 $ 4.27 Jumbo hybrid loans 206,309 Prepayment rate (Annual CPR) 15 - 15 % 15 % Spread to swap rate 125 - 165 bps 138 bps Jumbo loans committed to sell 633,310 Committed Sales Price $ 102.56 - $ 102.61 $ 102.58 Loans held by consolidated Sequoia entities (1) 1,021,870 Liability price N/A N/A Residential loans, at lower of cost or fair value 1,096 Loss severity 13 - 30 % 21 % Commercial loans, at fair value 106,798 Spread to swap rate 221 - 221 bps 221 bps Credit support 26 - 26 % 26 % Trading and AFS securities 1,233,256 Discount rate 5 - 12 % 6 % Prepayment rate (annual CPR) 1 - 35 % 12 % Default rate 0 - 35 % 6 % Loss severity 20 - 65 % 29 % Credit support 0 - 48 % 4 % MSRs 191,976 Discount rate 9 - 12 % 10 % Prepayment rate (annual CPR) 5 - 60 % 10 % Per loan annual cost to service $ 72 - $ 82 $ 79 Guarantee asset 5,697 Discount rate 11 - 11 % 11 % Prepayment rate (annual CPR) 12 - 12 % 12 % REO 2,395 Loss severity 0 - 89 % 51 % Loan purchase commitments, net (2) 3,208 MSR Multiple 0 - 6 x 3.4 x Fallout rate 1 - 99 % 25 % Whole loan spread to TBA price 3.10 - 4.38 4.16 Prepayment rate (Annual CPR) 15 - 15 15 % Spread to swap rate 125 - 165 bps 137 bps Liabilities ABS issued (1) 996,820 Discount rate 5 - 9 % 5 % Prepayment rate (annual CPR) 2 - 23 % 12 % Default rate 1 - 12 % 7 % Loss severity 20 - 32 % 27 % Credit support — - 33 % 9 % Commercial secured financing 63,152 Spread to swap rate 219 - 220 bps 220 bps Credit support 25 % - 25 % 25 % Notes to Table 5.7 (1) Upon adoption of ASU 2014-13 on January 1, 2015, we began to record loans held-for-investment in, and ABS issued by, consolidated Sequoia entities at fair value. In accordance with this new guidance, the fair value of the loans in these entities was based on the fair value of the liabilities (ABS) issued by these entities, which we determined were more readily observable. See Note 3 for further discussion. (2) For the purpose of this presentation, loan purchase commitment assets and liabilities are presented net.

Residential Loans (Tables)

Residential Loans (Tables) - Residential Loans	12 Months Ended
	Dec. 31, 2015
Mortgage Loans on Real Estate [Line Items]
Summary of Classifications and Carrying Value of Loans	The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia entities at December 31, 2015 and December 31, 2014 . Table 6.1 – Classifications and Carrying Values of the Residential Loans December 31, 2015 (In Thousands) Redwood Sequoia (1) Total Held-for-sale Fair value - conforming $ 129,819 $ — $ 129,819 Fair value - jumbo 984,486 — 984,486 Lower of cost or fair value - jumbo 1,433 — 1,433 Total held-for-sale 1,115,738 — 1,115,738 Held-for-investment Fair value - jumbo 1,791,195 1,021,870 2,813,065 Total Residential Loans $ 2,906,933 $ 1,021,870 $ 3,928,803 December 31, 2014 (In Thousands) Redwood Sequoia (1) Total Held-for-sale Fair value - conforming $ 244,714 $ — $ 244,714 Fair value - jumbo 1,096,317 — 1,096,317 Lower of cost or fair value - jumbo 1,488 — 1,488 Total held-for-sale 1,342,519 — 1,342,519 Held-for-investment Fair value - jumbo 581,668 — 581,668 At amortized cost — 1,474,386 1,474,386 Total Residential Loans $ 1,924,187 $ 1,474,386 $ 3,398,573 (1) Upon adoption of ASU 2014-13 on January 1, 2015, we began to record loans held-for-investment at consolidated Sequoia entities at fair value. See Note 3 for further discussion.
Carrying Value for Loans Held-for-Investment	The following table details the carrying value for residential loans held-for-investment at consolidated Sequoia entities at December 31, 2015 and December 31, 2014 . Table 6.2 – Carrying Value for Held-for-Investment Residential Loans at Sequoia Entities (In Thousands) December 31, 2015 December 31, 2014 Principal balance $ 1,122,415 $ 1,483,213 Unamortized premium, net — 12,511 Allowance for loan losses — (21,338 ) Valuation adjustment (100,545 ) — Carrying Value $ 1,021,870 $ 1,474,386
Geographic Concentration of Loans Recorded on Consolidated Balance Sheet	The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2015 and 2014 . Table 6.3 – Geographic Concentration of the Residential Loans December 31, 2015 December 31, 2014 Geographic Concentration (by Principal) Held-for-Sale Held-for- Investment at Sequoia Held-for- Investment at FVO Held-for-Sale Held-for- Investment at Sequoia Held-for- Investment at FVO California 41 % 18 % 39 % 39 % 20 % 24 % Texas 9 % 6 % 11 % 9 % 5 % 14 % Washington 6 % 2 % 3 % 5 % 2 % 4 % Colorado 5 % 3 % 5 % — % — % 8 % Florida 4 % 14 % 4 % 4 % 13 % 6 % Virginia 3 % 3 % 4 % 5 % 3 % 7 % Georgia 3 % 5 % 1 % 2 % 5 % — % Massachusetts 2 % 2 % 4 % 6 % 2 % 5 % New York 1 % 8 % 5 % 2 % 8 % 3 % Other states (none greater than 5%) 26 % 39 % 24 % 28 % 42 % 29 % Total 100 % 100 % 100 % 100 % 100 % 100 %
Loan Product Type and Accompanying Loan Characteristics of Loans	T he following table displays the loan product type and accompanying loan characteristics of residential loans recorded on our consolidated balance sheets at December 31, 2015 and 2014 . Table 6.4 – Classifications and Carrying Values of Residential Loans December 31, 2015 (In Thousands) Loan Balance Number of Loans Interest Rate (1) Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Held-for-Investment at Redwood (2) : ARM loans $ 251 to $500 2 3.63 % to 3.75% 2044-07 - 2044-07 $ 563 $ — $ — $ 501 to $750 2 3.50 % to 3.50% 2045-09 - 2045-10 1,671 — — $ 751 to $1,000 1 3.63 % to 3.63% 2044-08 - 2044-08 1,267 — — 5 3,501 — — Hybrid ARM loans $ 251 to $500 7 2.88 % to 3.88% 2044-01 - 2044-09 2,963 — — $ 501 to $750 28 2.63 % to 4.9% 2040-09 - 2044-10 17,514 — — $ 751 to $1,000 15 2.75 % to 5.05% 2039-05 - 2044-11 12,994 — — over $1,000 6 2.88 % to 5.2% 2039-04 - 2044-12 8,797 — — 56 42,268 — — Fixed loans $ — to $250 29 3.64 % to 5.38% 2039-04 - 2045-10 5,295 242 — $ 251 to $500 484 3.13 % to 5.13% 2029-07 - 2045-12 212,732 913 — $ 501 to $750 959 2.94 % to 5.25% 2026-11 - 2045-12 595,863 3,213 — $ 751 to $1,000 552 2.90 % to 5.00% 2024-01 - 2045-12 480,557 989 — over $1,000 313 3.14 % to 5.00% 2027-04 - 2045-12 418,774 — — 2,337 1,713,221 5,357 — Total HFI at Redwood: 2,398 $ 1,758,990 $ 5,357 $ — Held-for-Investment at Sequoia (1) : ARM loans: $ — to $250 3,133 0.38 % to 5.16% 2013-02 - 2035-11 $ 355,415 $ 10,661 $ 13,078 $ 251 to $500 858 — % to 5.63% 2013-12 - 2036-05 296,425 9,620 15,345 $ 501 to $750 269 0.63 % to 4.66% 2014-05 - 2035-09 161,273 4,578 7,209 $ 751 to $1,000 135 0.38 % to 2.38% 2019-02 - 2035-07 118,983 3,586 8,473 over $1,000 109 — % to 2.63% 2022-01 - 2036-05 169,492 1,341 14,718 4,504 1,101,588 29,786 58,823 Hybrid ARM loans: $ — to $250 3 2.75 % to 2.88% 2033-09 - 2034-06 317 — — $ 251 to $500 20 2.63 % to 2.88% 2033-07 - 2034-12 7,523 — — $ 501 to $750 15 2.63 % to 2.88% 2033-08 - 2034-12 9,874 542 — $ 751 to $1,000 2 2.75 % to 2.75% 2033-07 - 2033-08 1,547 — — over $1,000 1 2.75 % to 2.75% 2033-09 - 2033-09 1,566 — — 41 20,827 542 — Total HFI at Sequoia: 4,545 $ 1,122,415 $ 30,328 $ 58,823 Held-for-Sale: ARM loans $ 64 to $1,298 14 1.50 % to 4.00% 2032-11 - 2045-12 $ 5,258 $ — $ 415 Hybrid ARM loans $ 164 to $1,989 356 2.50 % to 4.25% 2037-06 - 2046-01 276,457 2,249 — Fixed loans $ 30 to $2,332 1,402 2.75 % to 5.25% 2025-09 - 2046-01 809,803 2,097 1,437 Total Held-for-Sale 1,772 $ 1,091,518 $ 4,346 $ 1,852 December 31, 2014 (In Thousands) Loan Balance Number of Loans Interest Rate (1) Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Held-for-Investment at Redwood (2) : Hybrid ARM loans $ 251 to $500 29 2.38 % to 3.75% 2044-01 - 2044-10 $ 12,487 $ — $ — $ 501 to $750 80 2.38 % to 4.25% 2044-02 - 2044-11 49,085 619 — $ 751 to $1,000 51 2.38 % to 3.75% 2043-05 - 2044-11 43,835 — — over $1,000 14 2.38 % to 3.25% 2044-03 - 2044-11 17,720 — — 174 123,127 619 — Fixed loans $ — to $250 1 4.13 % to 4.13% 2044-07 - 2044-07 75 — — $ 251 to $500 158 3.13 % to 4.75% 2029-01 - 2044-12 72,931 894 — $ 501 to $750 272 3.13 % to 5.00% 2029-04 - 2044-12 165,574 624 — $ 751 to $1,000 136 3.13 % to 4.88% 2029-01 - 2044-12 116,892 — — over $1,000 63 3.25 % to 5.00% 2024-01 - 2044-12 87,773 — — 630 443,245 1,518 — Total HFI at Redwood: 804 $ 566,372 $ 2,137 $ — Held-for-Investment at Sequoia (1) : ARM loans: $ — to $250 3,400 0.25 % to 5.50% 2012-12 - 2035-11 $ 400,779 $ 14,604 $ 16,332 $ 251 to $500 1,041 0.00 % to 5.63% 2013-12 - 2036-05 360,848 14,536 13,955 $ 501 to $750 328 0.50 % to 4.66% 2013-08 - 2035-09 198,661 7,218 12,862 $ 751 to $1,000 162 0.25 % to 2.38% 2019-02 - 2035-07 143,687 2,396 9,262 over $1,000 132 0.00 % to 2.63% 2022-01 - 2036-05 207,539 2,494 16,106 5,063 1,311,514 41,248 68,517 Hybrid ARM loans: $ — to $250 3 2.63 % to 2.63% 2033-09 - 2034-03 364 — — $ 251 to $500 26 2.50 % to 5.15% 2033-07 - 2039-12 10,056 — 319 $ 501 to $750 23 2.50 % to 4.65% 2033-07 - 2040-09 14,711 — — $ 751 to $1,000 11 2.50 % to 4.80% 2033-07 - 2040-12 9,393 — — over $1,000 7 2.50 % to 4.95% 2033-09 - 2040-11 11,786 — — 70 46,310 — 319 Fixed loans: $ — to $250 7 3.70 % to 4.90% 2039-04 - 2041-02 1,040 — — $ 251 to $500 42 3.45 % to 5.13% 2039-02 - 2041-07 17,574 — — $ 501 to $750 71 3.65 % to 5.25% 2039-02 - 2041-08 42,609 — — $ 751 to $1,000 38 4.20 % to 5.25% 2040-08 - 2041-08 32,966 — 726 over $1,000 24 4.30 % to 5.38% 2040-09 - 2041-06 31,200 — — 182 125,389 — 726 Total HFI at Sequoia: 5,315 $ 1,483,213 $ 41,248 $ 69,562 Held-for-Sale: ARM loans $ 66 to $359 8 1.88 % to 2.25% 2032-11 - 2033-10 $ 1,286 $ 170 $ 471 Hybrid ARM loans $ 252 to $1,985 109 2.63 % to 4.00% 2037-06 - 2045-01 84,271 — — Fixed loans $ 75 to $2,496 2,165 2.88 % to 5.00% 2024-12 - 2045-01 1,219,936 1,178 — Total Held-for-Sale 2,282 $ 1,305,493 $ 1,348 $ 471 Notes to Table 6.4 (1) Upon adoption of ASU 2014-13 on January 1, 2015, we began to record loans held-for-investment at consolidated Sequoia entities at fair value. See Note 3 for further discussion. (2) Rate is net of servicing fee for consolidated loans for which we do not own the MSR. For borrowers whose current rate is less than the applicable servicing fee, the rate shown in the table above is zero .
Summary of Activity in Allowance for Loans Losses	The following table summarizes the activity in the allowance for loan losses for the years ended December 31, 2015 , 2014 , and 2013 . Table 6.5 – Allowance for Loan Losses Years Ended December 31, (In Thousands) 2015 2014 2013 Balance at beginning of period $ 21,338 $ 25,427 $ 28,504 Charge-offs, net — (4,966 ) (4,525 ) Provision for loan losses — 877 1,448 Other adjustments (1) (21,338 ) — — Balance at End of Period $ — $ 21,338 $ 25,427 (1) Upon adoption of ASU 2014-13 on January 1, 2015, we began to record loans held-for-investment at consolidated Sequoia entities at fair value. See Note 3 for further discussion.

Commercial Loans (Tables)

Commercial Loans (Tables) - Commercial Loans	12 Months Ended
	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Summary of Classifications and Carrying Value of Loans	The following table summarizes the classifications and carrying value of commercial loans at December 31, 2015 and December 31, 2014 . Table 7.1 – Classifications and Carrying Value of Commercial Loans (In Thousands) December 31, 2015 December 31, 2014 Held-for-sale, at fair value $ 39,141 $ 166,234 Held-for-investment At fair value 67,657 71,262 At amortized cost 295,849 329,431 Total Commercial Loans $ 402,647 $ 566,927
Carrying Value for Loans Held-for-Investment	The following table provides additional information for our commercial loans held-for-investment at amortized cost at December 31, 2015 and December 31, 2014 . Table 7.2 – Carrying Value for Commercial Loans Held-for-Investment (In Thousands) December 31, 2015 December 31, 2014 Principal balance $ 307,047 $ 341,750 Unamortized discount, net (4,096 ) (4,862 ) Recorded investment 302,951 336,888 Allowance for loan losses (7,102 ) (7,457 ) Carrying Value $ 295,849 $ 329,431
Commercial Loans Held-for-Investment by Risk Category	The following table presents the principal balance of commercial loans held-for-investment by risk category. Table 7.3 – Principal Balance of Commercial Loans Held-for-Investment by Risk Category (In Thousands) December 31, 2015 December 31, 2014 Pass $ 272,768 $ 316,122 Watch list 34,279 25,628 Total Commercial Loans Held-for-Investment $ 307,047 $ 341,750
Summary of Activity in Allowance for Loans Losses	The following table summarizes the activity in the allowance for commercial loan losses for the years ended December 31, 2015 , 2014 , and 2013 . Table 7.4 – Activity in the Allowance for Commercial Loan Losses Years Ended December 31, (In Thousands) 2015 2014 2013 Balance at beginning of period $ 7,457 $ 7,373 4,084 Charge-offs, net — — — (Reversal of) provision for loan losses (355 ) 84 3,289 Balance at End of Period $ 7,102 $ 7,457 $ 7,373
Loans Evaluated for Impairment	The following table summarizes the balances for loans collectively evaluated for impairment at December 31, 2015 and December 31, 2014 . Table 7.5 – Loans Collectively Evaluated for Impairment Review (In Thousands) December 31, 2015 December 31, 2014 Principal balance $ 307,047 $ 341,750 Recorded investment 302,951 336,888 Related allowance 7,102 7,457
Geographic Concentration of Loans Recorded on Consolidated Balance Sheet	The following table displays the geographic concentration of commercial loans recorded on our consolidated balance sheets at December 31, 2015 and 2014 . Table 7.6 – Geographic Concentration of Commercial Loans December 31, 2015 December 31, 2014 Geographic Concentration (by Principal) Held-for-Sale Held-for- Investment Held-for-Sale Held-for- Investment Nevada 45 % — % — % — % Virginia 26 % — % — % — % Florida 18 % 10 % — % 17 % Illinois 11 % — % — % — % California — % 22 % 6 % 19 % New York — % 19 % — % 18 % Michigan — % 10 % 18 % 8 % Washington, District of Columbia — % — % 25 % — % Colorado — % — % 17 % — % Connecticut — % — % 10 % — % Texas — % 5 % 9 % — % Maryland — % — % 7 % — % North Carolina — % — % — % 6 % Other states (none greater than 5%) — % 34 % 8 % 32 % Total 100 % 100 % 100 % 100 %
Loan Product Type and Accompanying Loan Characteristics of Loans	The following table displays the loan product type and accompanying loan characteristics of commercial loans recorded on our consolidated balance sheets at December 31, 2015 and 2014 . Table 7.7 – Characteristics and Product Types of Commercial Loans December 31, 2015 (In Thousands) Loan Balance Number of Loans Interest Rate Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Held-for-Investment: Fixed-rate loans $ — to $ 5,000 40 9.50 % to 12.50 % 2016-08 - 2024-12 $ 109,973 $ — $ — $ 5,001 to $ 10,000 11 4.43 % to 11.00 % 2015-04 - 2025-01 87,510 — — $ 10,001 to $ 15,000 3 9.50 % to 9.50 % 2018-01 - 2021-06 42,374 — — $ 15,001 to $ 20,000 1 10.50 % to 11.00 % 2016-06 - 2022-06 20,000 — — $ 25,001 to $ 30,000 1 10.00 % 2016-10 25,405 — — 56 285,262 — — ARM loans: $ — to $ 5,000 1 11.20 % to 11.20 % 2016-11 - 2016-11 1,330 — — $ 5,001 to $ 10,000 1 12.00 % to 12.00 % 2015-02 - 2016-10 5,455 — — $ 10,001 to $ 15,000 1 9.16 % to 9.16 % 2014-11 - 2016-08 15,000 — — 3 21,785 — — Total Held-for-Investment 59 $ 307,047 $ — $ — Held-for-Investment, at Fair Value: Fixed-rate loans: $ — to $ 5,000 3 10.00 % to 10.00 % 2023-12 - 2024-04 $ 4,505 $ — $ — $ 10,001 to $ 15,000 1 4.95 % 2014-01 11,169 — — $ 20,001 to $ 25,000 1 4.83 % 2023-12 21,788 — — $ 25,001 to $ 30,000 1 4.79 % 2024-04 29,500 — — Total Held-for-Investment, at Fair Value 6 $ 66,962 $ — $ — Held-for-Sale Fixed-rate loans: $ — to $ 5,000 1 4.81 % to 4.81 % 2025-10 - 2025-10 $ 4,150 $ — $ — $ 5,001 to $ 10,000 2 5.05 % 5.05 % 2026-01 - 2026-01 16,900 — — $ 15,001 to $ 20,000 1 4.90 % 4.90 % 2025-12 - 2025-12 17,700 — — Total Held-for-Sale 4 $ 38,750 $ — $ — December 31, 2014 (In Thousands) Loan Balance Number of Loans Interest Rate Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Held-for-Investment: Fixed-rate loans $ — to $5,000 37 9.50 % to 12.50 % 2016-08 - 2024-12 $ 102,994 $ — $ — $ 5,001 to $10,000 14 4.43 % to 11.00 % 2015-04 - 2025-01 109,551 — — $ 10,001 to $15,000 2 9.50 % to 9.50 % 2018-01 - 2021-06 24,874 — — $ 15,001 to $20,000 2 10.50 % to 11.00 % 2016-06 - 2022-06 37,700 — — $ 25,001 to $30,000 1 10.00 % 2016-10 25,629 — — 56 300,748 — — ARM loans: $ 5,001 to $10,000 2 10.80 % to 12.00 % 2015-02 - 2016-10 15,478 — — $ 10,001 to $15,000 2 9.16 % to 11.20 % 2014-11 - 2016-08 25,524 — — 4 41,002 — — Total Held-for-Investment 60 $ 341,750 $ — $ — Held-for-Investment, at Fair Value: Fixed-rate loans: $ — to $5,000 3 10.00 % to 10.00 % 2023-12 - 2024-04 $ 4,555 $ — $ — $ 10,001 to $15,000 1 4.95 % 2024-01 11,399 — — $ 20,001 to $25,000 1 4.83 % 2023-12 22,102 — — $ 25,001 to $30,000 1 4.79 % 2024-04 29,500 — — Total Held-for-Investment, at Fair Value 6 $ 67,556 $ — $ — Held-for-Sale Fixed-rate loans: 13 4.19 % to 4.79 % 2024-12 - 2045-01 $ 162,790 $ — $ —

Real Estate Securities (Tables)

Real Estate Securities (Tables)	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Fair Values of Real Estate Securities by Collateral Type and Entity	The following table presents the fair values of our real estate securities by type at December 31, 2015 and December 31, 2014 . Table 8.1 – Fair Values of Real Estate Securities by Type (In Thousands) December 31, 2015 December 31, 2014 Trading $ 404,011 $ 111,606 Available-for-sale 829,245 1,267,624 Total Real Estate Securities $ 1,233,256 $ 1,379,230
Trading Securities by Collateral Type	The following table presents the fair value of trading securities by collateral type at December 31, 2015 and December 31, 2014 . Table 8.2 – Trading Securities by Collateral Type (In Thousands) December 31, 2015 December 31, 2014 Senior Securities Prime $ 248,570 $ 93,802 Non-prime 5,781 7,951 Total Senior Securities 254,351 101,753 Subordinate Securities Prime mezzanine (1) 136,140 — Prime subordinate (2) 13,520 9,853 Total Subordinate Securities 149,660 9,853 Total Trading Securities $ 404,011 $ 111,606 (1) Mezzanine includes securities initially rated AA, A and BBB- and issued in 2012 or later. (2) Subordinate securities includes less than $1 million of non-prime securities at both December 31, 2015 , and December 31, 2014 .
Available for Sale Securities by Collateral Type	The following table presents the fair value of our available-for-sale securities by collateral type at December 31, 2015 and December 31, 2014 . Table 8.3 – Available-for-Sale Securities by Collateral Type (In Thousands) December 31, 2015 December 31, 2014 Senior Securities Prime $ 210,993 $ 307,813 Non-prime 68,258 179,744 Total Senior Securities 279,251 487,557 Re-REMIC Securities 165,064 168,347 Subordinate Securities Prime mezzanine (1) 220,141 448,838 Prime subordinate (2) 164,789 162,882 Total Subordinate Securities 384,930 611,720 Total AFS Securities $ 829,245 $ 1,267,624 Notes to Table 8.3 (1) Mezzanine includes securities initially rated AA, A and BBB- and issued in 2012 or later. (2) Subordinate securities includes less than $1 million of non-prime securities at both December 31, 2015 , and December 31, 2014 .
Components of Carrying Value (Which Equals Fair Value) of Residential Available for Sale Securities	The following table presents the components of carrying value (which equals fair value) of AFS securities at December 31, 2015 and December 31, 2014 . Table 8.4 – Carrying Value of AFS Securities December 31, 2015 Senior (In Thousands) Prime Non-prime Re-REMIC Subordinate Total Principal balance $ 217,605 $ 75,591 $ 189,782 $ 490,249 $ 973,227 Credit reserve (1,305 ) (5,101 ) (10,332 ) (32,131 ) (48,869 ) Unamortized discount, net (22,079 ) (8,395 ) (71,670 ) (134,963 ) (237,107 ) Amortized cost 194,221 62,095 107,780 323,155 687,251 Gross unrealized gains 20,263 6,249 57,284 63,205 147,001 Gross unrealized losses (3,491 ) (86 ) — (1,430 ) (5,007 ) Carrying Value $ 210,993 $ 68,258 $ 165,064 $ 384,930 $ 829,245 December 31, 2014 Senior (In Thousands) Prime Non-prime Re-REMIC Subordinate Total Principal balance $ 311,573 $ 196,258 $ 195,098 $ 742,150 $ 1,445,079 Credit reserve (3,660 ) (9,644 ) (15,202 ) (41,561 ) (70,067 ) Unamortized discount, net (34,782 ) (31,491 ) (79,611 ) (150,458 ) (296,342 ) Amortized cost 273,131 155,123 100,285 550,131 1,078,670 Gross unrealized gains 35,980 24,682 68,062 63,026 191,750 Gross unrealized losses (1,298 ) (61 ) — (1,437 ) (2,796 ) Carrying Value $ 307,813 $ 179,744 $ 168,347 $ 611,720 $ 1,267,624
Changes of Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities	The following table presents the changes for the years ended December 31, 2015 and 2014 , in unamortized discount and designated credit reserves on residential AFS securities. Table 8.5 – Changes in Unamortized Discount and Designated Credit Reserves on AFS Securities Year Ended December 31, 2015 Year Ended December 31, 2014 Credit Unamortized Credit Unamortized (In Thousands) Beginning balance $ 70,067 $ 296,342 $ 116,870 $ 298,469 Amortization of net discount — (36,850 ) — (42,835 ) Realized credit losses (8,535 ) — (11,501 ) — Acquisitions 2,557 15,791 3,581 15,348 Sales, calls, other (7,296 ) (46,346 ) (2,555 ) (11,533 ) Impairments — 246 565 — Transfers to (release of) credit reserves, net (7,924 ) 7,924 (36,893 ) 36,893 Ending Balance $ 48,869 $ 237,107 $ 70,067 $ 296,342
Components of Carrying Value of Available for Sale Securities in Unrealized Loss Position	The following table presents the components comprising the total carrying value of residential AFS securities that were in a gross unrealized loss position at December 31, 2015 and December 31, 2014 . Table 8.6 – Gross Unrealized Losses on Residential AFS Securities Less Than 12 Consecutive Months 12 Consecutive Months or Longer Amortized Cost Unrealized Losses Fair Amortized Cost Unrealized Losses Fair (In Thousands) December 31, 2015 $ 87,718 $ (1,972 ) $ 85,746 $ 77,539 $ (3,035 ) $ 74,504 December 31, 2014 126,681 (1,374 ) 125,307 70,676 (1,422 ) 69,254
Summary of Significant Valuation Assumptions for Available for Sale Securities	The table below summarizes the significant valuation assumptions we used for our AFS securities in unrealized loss positions at December 31, 2015 . Table 8.7 – Significant Valuation Assumptions Range for Securities December 31, 2015 Prime Non-prime Prepayment rates 10 - 20 % 8 - 12 % Projected losses 0 - 9 % 5 - 6 %
Activity of Credit Component of Other-than-Temporary Impairments	The following table details the activity related to the credit loss component of OTTI (i.e., OTTI recognized through earnings) for AFS securities held at December 31, 2015 , 2014 , and 2013 for which a portion of an OTTI was recognized in other comprehensive income. Table 8.8 – Activity of the Credit Component of Other-than-Temporary Impairments Years Ended December 31, (In Thousands) 2015 2014 2013 Balance at beginning of period $ 33,849 $ 37,149 $ 50,852 Additions Initial credit impairments 246 261 137 Subsequent credit impairments — 70 — Reductions Securities sold, or expected to sell (4,567 ) (922 ) (5,811 ) Securities with no outstanding principal at period end (1,251 ) (2,709 ) (8,029 ) Balance at End of Period $ 28,277 $ 33,849 $ 37,149
Gross Realized Gains and Losses on Sales and Calls of Available for Sale Securities	The following table presents the gross realized gains and losses on sales and calls of AFS securities for the year s ended December 31, 2015 , 2014 , and 2013 . Table 8.9 – Gross Realized Gains and Losses on AFS Securities Years Ended December 31, (In Thousands) 2015 2014 2013 Gross realized gains - sales $ 34,922 $ 15,030 $ 24,613 Gross realized gains - calls 2,167 1,600 366 Gross realized losses - sales (608 ) (2,713 ) (214 ) Gross realized losses - calls (112 ) — — Total Realized Gains on Sales and Calls of AFS Securities, net $ 36,369 $ 13,917 $ 24,765

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	12 Months Ended
	Dec. 31, 2015
Transfers and Servicing [Abstract]
Schedule of Fair Value of MSRs and Aggregate Principal Amounts of Associated Loans	The following table presents the fair value of MSRs and the aggregate principal amounts of associated loans as of December 31, 2015 and December 31, 2014 . Table 9.1 – Fair Value of MSRs and Aggregate Principal Amounts of Associated Loans December 31, 2015 December 31, 2014 (In Thousands) MSR Fair Value Associated Principal MSR Fair Value Associated Principal Mortgage Servicing Rights Conforming Loans $ 133,838 $ 12,560,533 $ 81,301 $ 7,705,146 Jumbo Loans 58,138 5,705,939 57,992 5,962,784 Total Mortgage Servicing Rights $ 191,976 $ 18,266,472 $ 139,293 $ 13,667,930
Activity for Residential First-Lien Mortgage Servicing Rights	The following table presents activity for MSRs for the years ended December 31, 2015 , 2014 , and 2013 . Table 9.2 – Activity for MSRs Years Ended December 31, (In Thousands) 2015 2014 2013 Balance at beginning of period $ 139,293 $ 64,824 $ 5,315 Additions 95,281 95,550 47,514 Sales (18,206 ) — — Changes in fair value due to: Changes in assumptions (1) (5,453 ) (12,467 ) 15,719 Other changes (2) (18,939 ) (8,614 ) (3,724 ) Balance at End of Period $ 191,976 $ 139,293 $ 64,824 (1) Primarily reflects changes in prepayment assumptions due to changes in market interest rates. (2) Represents changes due to realization of expected cash flows.
Details of Retention and Purchase of MSRs	The following table details the retention and purchase of MSRs during the years ended December 31, 2015 and 2014 . Table 9.3 – MSR Additions (In Thousands) December 31, 2015 December 31, 2014 MSR Fair Value Associated Principal MSR Fair Value Associated Principal Jumbo MSR additions: From securitization $ 8,202 $ 882,860 $ 8,518 $ 1,002,235 From loan sales 352 33,022 488 58,793 Total jumbo MSR additions 8,554 915,882 9,006 1,061,028 Conforming MSR additions: From loan sales 55,954 5,251,537 38,995 3,618,256 From purchases 30,773 2,952,345 47,549 3,993,387 Total conforming MSR additions 86,727 8,203,882 86,544 7,611,643 Total MSR Additions $ 95,281 $ 9,119,764 $ 95,550 $ 8,672,671
Income from Mortgage Servicing Rights, Net	The following table presents the components of our MSR income. Table 9.4 – Components of MSR Income (Loss), net Years Ended December 31, (In Thousands) 2015 2014 2013 Servicing income Income $ 38,964 $ 19,362 $ 9,239 Cost of sub-servicer (5,079 ) (1,834 ) (925 ) Net servicing income 33,885 17,528 8,314 Market valuation changes of MSRs (24,392 ) (21,081 ) 11,995 Market valuation changes of associated derivatives (1) (12,708 ) — — MSR provision for repurchases (707 ) (708 ) — MSR Income (Loss), Net $ (3,922 ) $ (4,261 ) $ 20,309 (1) In the second quarter of 2015, we began to identify specific derivatives used to hedge the exposure of our MSRs to changes in market interest rates. See Note 2 for additional detail.

Derivative Financial Instrume39

Derivative Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Aggregate Fair Value and Notional Amount of Derivative Financial Instruments	The following table presents the fair value and notional amount of our derivative financial instruments at December 31, 2015 and December 31, 2014 . Table 10.1 – Fair Value and Notional Amount of Derivative Financial Instruments December 31, 2015 December 31, 2014 Fair Value Notional Amount Fair Value Notional Amount (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 2,590 $ 658,000 $ — $ — TBAs 2,734 1,028,500 6,654 1,074,000 Swaptions 5,191 925,000 7,006 575,000 Credit default index swaps 1,207 25,000 1,597 50,000 Assets - Other Derivatives Loan purchase commitments 4,671 764,161 1,160 288,467 Total Assets $ 16,393 $ 3,400,661 $ 16,417 $ 1,987,467 Liabilities - Cash Flow Hedges Interest rate swaps $ (48,232 ) $ 139,500 $ (46,845 ) $ 139,500 Liabilities - Risk Management Derivatives Interest rate swaps (10,134 ) 1,039,500 (1,328 ) 206,000 TBAs (2,519 ) 1,450,500 (9,506 ) 1,110,000 Futures (445 ) 78,000 (372 ) 90,000 Liabilities - Other Derivatives Loan purchase commitments (1,464 ) 375,815 (41 ) 27,324 Loan forward sale commitments — — (239 ) 102,793 Total Liabilities $ (62,794 ) $ 3,083,315 $ (58,331 ) $ 1,675,617 Total Derivative Financial Instruments, Net $ (46,401 ) $ 6,483,976 $ (41,914 ) $ 3,663,084
Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges	The following table illustrates the impact on interest expense of our interest rate agreements accounted for as cash flow hedges for the years ended December 31, 2015 , 2014 , and 2013 . Table 10.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Years Ended December 31, (In Thousands) 2015 2014 2013 Net interest expense on cash flows hedges $ (5,883 ) $ (5,951 ) $ (5,889 ) Realized expense due to ineffective portion of cash flow hedges — — — Realized net losses reclassified from other comprehensive income (95 ) (164 ) (281 ) Total Interest Expense $ (5,978 ) $ (6,115 ) $ (6,170 )

Other Assets and Liabilities (T

Other Assets and Liabilities (Tables)	12 Months Ended
	Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Summary of Other Assets	Other assets at December 31, 2015 and December 31, 2014 , are summarized in the following table. Table 11.1 – Components of Other Assets (In Thousands) December 31, 2015 December 31, 2014 Margin receivable $ 83,191 $ 65,374 Pledged collateral 53,600 9,927 FHLBC stock 34,437 10,688 Guarantee asset 5,697 7,201 Fixed assets and leasehold improvements (1) 4,117 3,008 REO 4,896 4,391 Investment receivable 3,870 1,103 Prepaid expenses 3,640 3,372 Deposits — 5,000 Other 4,438 3,832 Total Other Assets $ 197,886 $ 113,896 (1) Fixed assets and leasehold improvements have a basis of $6 million and accumulated depreciation of $2 million at December 31, 2015 .
Summary of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities at December 31, 2015 and December 31, 2014 are summarized in the following table. Table 11.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) December 31, 2015 December 31, 2014 Accrued compensation $ 17,527 $ 19,273 Guarantee obligations 22,704 7,201 Margin payable 6,415 6,455 Residential loan and MSR repurchase reserve 6,403 3,724 Current accounts payable 4,764 2,112 Legal reserve 2,000 2,000 Accrued operating expenses 1,845 3,334 Other 8,239 8,145 Total Other Liabilities $ 69,897 $ 52,244

Short-Term Debt (Tables)

Short-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Outstanding Balances of Short-Term Debt by Type of Collateral Securing Debt	The table below summarizes the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information of the short-term debt at December 31, 2015 and December 31, 2014 by the type of collateral securing the debt. Table 12.1 – Short-Term Debt by Collateral Type December 31, 2015 (Dollars in Thousands) Number of Facilities Outstanding Limit Weighted Average Interest Rate Maturity Weighted Average Days Until Maturity Collateral Type Held-for-sale residential loans 4 $ 950,022 $ 1,400,000 1.90 % 2/2016-12/2016 182 Held-for-investment residential loans (1) 1 137,622 — 0.21 % 7/2016-11/2016 204 Commercial loans 2 73,718 300,000 4.13 % 4/2016-10/2016 265 Real estate securities 9 693,641 — 1.47 % 1/2016-3/2016 24 Total 16 $ 1,855,003 (1) Amount represents the portion of our borrowings from the FHLBC that were due within 12 months as of December 31, 2015 . See Note 14 for additional information on our FHLB-member subsidiary's borrowing agreement with the FHLBC. December 31, 2014 (Dollars in Thousands) Number of Facilities Outstanding Limit Weighted Average Interest Rate Maturity Weighted Average Days Until Maturity Collateral Type Held-for-sale residential loans 5 $ 1,076,188 $ 1,550,000 1.74 % 2/2015-12/2015 156 Commercial loans 3 109,128 400,000 3.66 % 4/2015-10/2016 185 Real estate securities 9 608,509 — 1.38 % 1/2015-3/2015 20 Total 17 $ 1,793,825
Remaining Maturities of Short Term Debt	The following table presents the remaining maturities of short-term debt at December 31, 2015 . Table 12.2 – Short-Term Debt by Collateral Type and Remaining Maturities December 31, 2015 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for sale residential loans $ — $ 351,703 $ 598,319 $ 950,022 Held-for-investment residential loans — — 137,622 137,622 Commercial loans — — 73,718 73,718 Real estate securities 606,612 87,029 — 693,641 Total Short-Term Debt $ 606,612 $ 438,732 $ 809,659 $ 1,855,003

Asset-Backed Securities Issued

Asset-Backed Securities Issued (Tables)	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Carrying Value of ABS Issued by Consolidated Securitization Entities Sponsored, along with Other Selected Information	The carrying values of ABS issued by consolidated securitization entities we sponsored at December 31, 2015 and December 31, 2014 , along with other selected information, are summarized in the following table. Table 13.1 – Asset-Backed Securities Issued December 31, 2015 (Dollars in Thousands) Sequoia Residential Resecuritization Commercial Securitization Total Certificates with principal balance $ 1,108,785 $ — $ 53,137 $ 1,161,922 Interest-only certificates 4,672 — — 4,672 Market valuation adjustments (1) (116,637 ) — — (116,637 ) Total ABS Issued $ 996,820 $ — $ 53,137 $ 1,049,957 Range of weighted average interest rates, by series 0.41% to 2.21% — % 5.62 % Stated maturities 2017 - 2037 — 2018 Number of series 21 — 1 (1) Upon adoption of ASU 2014-13 on January 1, 2015, we began to account for ABS issued by consolidated Sequoia entities at fair value. See Note 3 for additional information. December 31, 2014 (Dollars in Thousands) Sequoia Residential Resecuritization Commercial Securitization Total Certificates with principal balance $ 1,427,056 $ 45,044 $ 83,313 $ 1,555,413 Interest-only certificates 2,079 — — 2,079 Unamortized discount (12,373 ) — — (12,373 ) Total ABS Issued $ 1,416,762 $ 45,044 $ 83,313 $ 1,545,119 Range of weighted average interest rates, by series 0.36% to 4.27% 2.16 % 5.62 % Stated maturities 2014 - 2041 2046 2018 Number of series 24 1 1
Summary of Accrued Interest Payable on ABS Issued	The following table summarizes the accrued interest payable on ABS issued at December 31, 2015 and December 31, 2014 . Interest due on consolidated ABS issued is payable monthly. Table 13.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) December 31, 2015 December 31, 2014 Sequoia $ 555 $ 976 Residential Resecuritization — 5 Commercial Securitization 249 390 Total Accrued Interest Payable on ABS Issued $ 804 $ 1,371
Summary of Carrying Value Components of Collateral for ABS Issued and Outstanding	The following table summarizes the carrying value components of the collateral for ABS issued and outstanding at December 31, 2015 and December 31, 2014 . Table 13.3 – Collateral for Asset-Backed Securities Issued December 31, 2015 (In Thousands) Sequoia Residential Resecuritization Commercial Securitization Total Residential loans $ 1,021,870 $ — $ — $ 1,021,870 Commercial loans — — 166,016 166,016 Real estate securities — — — — Restricted cash 228 — 137 365 Accrued interest receivable 1,131 — 1,297 2,428 REO 4,895 — — 4,895 Total Collateral for ABS Issued $ 1,028,124 $ — $ 167,450 $ 1,195,574 December 31, 2014 (In Thousands) Sequoia Residential Resecuritization Commercial Securitization Total Residential loans $ 1,474,386 $ — $ — $ 1,474,386 Commercial loans — — 194,991 194,991 Real estate securities — 221,676 — 221,676 Restricted cash 147 43 137 327 Accrued interest receivable 2,359 477 1,511 4,347 REO 4,391 — — 4,391 Total Collateral for ABS Issued $ 1,481,283 $ 222,196 $ 196,639 $ 1,900,118

Long-Term Debt Long-term debt (

Long-Term Debt Long-term debt (Tables)	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt	The following table presents maturities of our long-term portion of FHLBC borrowings by year at December 31, 2015 . Table 14.1 – Maturities of Long-Term Portion of FHLBC Borrowings by Year (In Thousands) December 31, 2015 2017 $ 89,208 2024 470,171 2025 783,644 Total Long-Term FHLBC Borrowings $ 1,343,023 For additional discussion of our FHLBC borrowings, see Part II, Item 7 of this Annual Report on Form 10-K under the heading “ Risks Relating to Debt Incurred Under Short- and Long-Term Borrowing Facilities. ”

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Future Lease Commitments	The following table presents our future lease commitments at December 31, 2015 . Table 15.1 – Future Lease Commitments by Year (In Thousands) December 31, 2015 2016 $ 2,864 2017 2,880 2018 1,827 2019 1,189 2020 1,127 2021 and thereafter 367 Total Lease Commitments $ 10,254

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Changes to Accumulated Other Comprehensive Income (Loss) by Component	The following table provides a summary of changes in accumulated other comprehensive income by component for the years ended December 31, 2015 and 2014 . Table 16.1 – Changes in Accumulated Other Comprehensive Income by Component Years Ended December 31, 2015 2014 (In Thousands) Net Unrealized Gains on Available-for-Sale Securities Net Unrealized Losses on Interest Rate Agreements Accounted for as Cash Flow Hedges Net Unrealized Gains on Available-for-Sale Securities Net Unrealized Losses on Interest Rate Agreements Accounted for as Cash Flow Hedges Balance at beginning of period $ 186,737 $ (46,049 ) $ 164,654 $ (15,888 ) Other comprehensive income (loss) (17,955 ) (1,409 ) 32,635 (30,325 ) Amounts reclassified from other (29,426 ) 95 (10,552 ) 164 Net current-period other comprehensive income (loss) (47,381 ) (1,314 ) 22,083 (30,161 ) Balance at End of Period $ 139,356 $ (47,363 ) $ 186,737 $ (46,049 )
Reclassifications out of Accumulated Other Comprehensive Income (Loss)	The following table provides a summary of reclassifications out of accumulated other comprehensive income for the years ended December 31, 2015 and 2014 . Table 16.2 – Reclassifications Out of Accumulated Other Comprehensive Income Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Years Ended December 31, (In Thousands) Income Statement 2015 2014 Net realized (gain) loss on AFS securities Other than temporary impairment (1) Mortgage banking and investment activities, net $ 246 $ 565 Gain on sale of AFS securities Realized gains, net (29,672 ) (11,117 ) $ (29,426 ) $ (10,552 ) Net realized loss on interest rate Amortization of deferred loss Interest expense $ 95 $ 164 $ 95 $ 164 (1) For the year ended December 31, 2015 , other-than-temporary impairments were $419 , of which $246 were recognized through the Income Statement and $173 were recognized in Accumulated Other Comprehensive Income. For the year ended December 31, 2014 , other-than-temporary impairments were $4,774 , of which $565 were recognized through the Income Statement, and $4,209 were recognized in Accumulated Other Comprehensive Income.
Basic and Diluted Earnings (Loss) Per Common Share	The following table provides the basic and diluted earnings per common share computations for the years ended December 31, 2015 , 2014 , and 2013 . Table 16.3 – Basic and Diluted Earnings Per Common Share Years Ended December 31, (In Thousands, Except Share Data) 2015 2014 2013 Basic Earnings Per Common Share: Net income attributable to Redwood $ 102,088 $ 100,569 $ 173,246 Less: Dividends and undistributed earnings allocated to participating securities (2,806 ) (2,612 ) (4,899 ) Net income allocated to common shareholders $ 99,282 $ 97,957 $ 168,347 Basic weighted average common shares outstanding 82,945,103 82,837,369 81,985,897 Basic Earnings Per Common Share $ 1.20 $ 1.18 $ 2.05 Diluted Earnings Per Common Share: Net income attributable to Redwood $ 102,088 $ 100,569 $ 173,246 Less: Dividends and undistributed earnings allocated to participating securities (2,677 ) (2,524 ) (3,726 ) Add back: Interest expense on convertible notes for the period, net of tax — — 12,641 Net income allocated to common shareholders $ 99,411 $ 98,045 $ 182,161 Weighted average common shares outstanding 82,945,103 82,837,369 81,985,897 Net effect of dilutive equity awards 1,573,292 2,261,210 1,957,081 Net effect of assumed convertible notes conversion to common shares — — 9,751,946 Diluted weighted average common shares outstanding 84,518,395 85,098,579 93,694,924 Diluted Earnings Per Common Share $ 1.18 $ 1.15 $ 1.94

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Equity Compensation Plans	The unamortized compensation cost of awards issued under the Incentive Plan and purchases under the Employee Stock Purchase Plan totaled $24 million at December 31, 2015 , as shown in the following table. Table 17.1 – Activities of Equity Compensation Costs by Award Type Year Ended December 31, 2015 (In Thousands) Restricted Stock Deferred Stock Units Performance Stock Units Employee Stock Purchase Plan Total Unrecognized compensation cost at beginning of period $ 1,091 $ 12,304 $ 6,874 $ — $ 20,269 Equity grants 2,781 9,425 3,375 236 15,817 Equity grant forfeitures (387 ) (170 ) — — (557 ) Equity compensation expense (1,092 ) (7,167 ) (3,426 ) (236 ) (11,921 ) Unrecognized Compensation Cost at End of Period $ 2,393 $ 14,392 $ 6,823 $ — $ 23,608
Restricted Stock Outstanding	Table 17.2 – Restricted Stock Activities Years Ended December 31, 2015 2014 2013 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of period 109,464 $ 15.97 166,941 $ 15.01 190,088 $ 13.12 Granted 141,069 19.03 2,574 19.42 52,103 18.71 Vested (42,675 ) 14.87 (44,209 ) 13.44 (48,615 ) 12.63 Forfeited (20,678 ) 18.74 (15,842 ) 13.45 (26,635 ) 13.14 Outstanding at End of Period 187,180 $ 18.22 109,464 $ 15.97 166,941 $ 15.01
Deferred Stock Units Activity	The following table summarizes the activities related to DSUs for the years ended December 31, 2015 , 2014 , and 2013 . Table 17.3 – Deferred Stock Units Activities Years Ended December 31, 2015 2014 2013 Units Weighted Units Weighted Units Weighted Outstanding at beginning of period 2,168,824 $ 16.20 2,266,473 $ 15.41 2,361,285 $ 14.46 Granted 583,958 16.11 350,769 19.62 552,250 19.31 Distributions (335,461 ) 14.20 (440,548 ) 14.82 (558,008 ) 15.51 Forfeitures (10,167 ) 16.60 (7,870 ) 19.06 (89,054 ) 11.18 Balance at End of Period (1) 2,407,154 $ 16.45 2,168,824 $ 16.20 2,266,473 $ 15.41 (1) PSU activity, including the number of PSUs outstanding, granted, distributed, and forfeited is not included in this table. Vested PSUs become vested DSUs prior to distribution, but are excluded from the table above and are described below under the heading "Performance Stock Units."
Summary of Activity Related to ESPP	The following table summarizes the activities related to the ESPP for the years ended December 31, 2015 , 2014 , and 2013 . Table 17.4 – Employee Stock Purchase Plan Activities Years Ended December 31, (In Thousands) 2015 2014 2013 Balance at beginning of period $ 3 $ 3 $ 3 Employee purchases 475 494 518 Cost of common stock issued (460 ) (494 ) (518 ) Balance at End of Period $ 18 $ 3 $ 3
Summary of Activity Related to Executive Deferred Compensation Plan	The following table summarizes the cash account activities related to the EDCP for the years ended December 31, 2015 , 2014 , and 2013 . Table 17.5 – EDCP Cash Accounts Activities Years Ended December 31, (In Thousands) 2015 2014 2013 Balance at beginning of period $ 2,049 $ 1,882 $ 1,516 New deferrals 600 575 656 Accrued interest 61 70 58 Withdrawals (615 ) (478 ) (348 ) Balance at End of Period $ 2,095 $ 2,049 $ 1,882

Mortgage Banking and Invetsme47

Mortgage Banking and Invetsment Activities, Net (Tables)	12 Months Ended
	Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Components of Mortgage Banking Activities, Net	The following table presents the components of mortgage banking and investment activities, net, recorded in our consolidated statements of income for the years ended December 31, 2015 , 2014 , and 2013 . Table 18.1 – Mortgage Banking and Investment Activities Years Ended December 31, (In Thousands) 2015 2014 2013 Residential mortgage banking activities, net: Changes in fair value of: Residential loans, at fair value (1) $ 3,712 $ 51,311 $ (10,455 ) Real estate securities (2) (15,261 ) (23,839 ) 42,451 Risk management derivatives (3) 14,657 (9,386 ) 47,387 Hedging allocation (2) 1,120 — — Other income, net (4) 4,040 3,468 48 Total residential mortgage banking activities, net: 8,268 21,554 79,431 Commercial mortgage banking activities, net: Changes in fair value of: Commercial loans, at fair value 10,265 20,789 8,694 Risk management derivatives (3) (8,011 ) (7,890 ) 3,376 Net gains on commercial loan sales — — 11,031 Other income 450 541 — Total commercial mortgage banking activities, net: 2,704 13,440 23,101 Investment activities, net Changes in fair value of: Residential loans held-for-investment, at Redwood (6,337 ) (697 ) — Real estate securities (2,265 ) (923 ) (5,357 ) Net investments in consolidated Sequoia entities (1,192 ) (894 ) (613 ) Risk sharing investments (1,886 ) 104 — Risk management derivatives (8,557 ) (7,792 ) 223 Hedging allocation (2) (1,120 ) — — Total investment activities: (21,357 ) (10,202 ) (5,747 ) Mortgage banking and investment activities, net $ (10,385 ) $ 24,792 $ 96,785 (1) Includes changes in fair value for associated loan purchase and forward sale commitments. (2) In the second quarter of 2015, we transferred securities previously utilized as hedges for our mortgage banking segment to our residential investments segment and began to record a hedging allocation between our business segments. See Note 2 for further discussion. (3) Represents market valuation changes of derivatives that are used to manage risks associated with our accumulation of residential and commercial loans. (4) Amounts in this line item include other fee income from loan acquisitions and the provision for repurchases expense, presented net.

Operating Expenses (Tables)

Operating Expenses (Tables)	12 Months Ended
	Dec. 31, 2015
Other Income and Expenses [Abstract]
Components of Operating Expenses	Components of our operating expenses for the years ended December 31, 2015 , 2014 and 2013 are presented in the following table. Table 19.1 – Components of Operating Expenses Years Ended December 31, (In Thousands) 2015 2014 2013 Fixed compensation expense $ 35,093 $ 29,057 $ 23,248 Variable compensation expense (1) 12,606 14,863 22,245 Equity compensation expense 11,921 9,750 10,077 Total compensation expense 59,620 53,670 55,570 Systems and consulting 10,212 11,654 7,517 Loan acquisition costs (2) 10,326 8,207 7,605 Accounting and legal 4,837 5,244 6,263 Office costs 5,270 5,011 3,503 Corporate costs 2,049 2,237 2,721 Other operating expenses 5,102 4,100 3,428 Total Operating Expenses $ 97,416 $ 90,123 $ 86,607 (1) For the year ended December 31, 2013, variable compensation expense included $4 million of severance expense. (2) Loan acquisition costs primarily includes underwriting and due diligence costs related to the acquisition of residential loans held-for-sale at fair value.

Taxes (Tables)

Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Components of Net Deferred Tax Assets	Components of our net deferred tax assets at December 31, 2015 and 2014 are presented in the following table. Table 20.1 – Deferred Tax Assets (Liabilities) (In Thousands) December 31, 2015 December 31, 2014 Deferred Tax Assets Net operating loss carryforward – state $ 95,972 $ 91,579 Net capital loss carryforward – state 22,603 27,308 Net operating loss carryforward – federal 32,929 18,765 Net capital loss carryforward – federal 7,971 7,903 Real estate assets 5,144 — Interest rate agreements 1,472 — Allowances and accruals 3,458 2,355 Other 513 210 Total Deferred Tax Assets 170,062 148,120 Deferred Tax Liabilities Real estate assets — (6,821 ) Mortgage Servicing Rights (50,630 ) (37,581 ) Interest rate agreements — (87 ) Tax effect of unrealized gains – OCI (2,638 ) (2,684 ) Total Deferred Tax Liabilities (53,268 ) (47,173 ) Valuation allowance (116,794 ) (111,183 ) Total Deferred Tax Asset (Liability), net of Valuation Allowance $ — $ (10,236 )
Provision for Income Taxes	The following table summarizes the provision for income taxes for the years ended December 31, 2015 , 2014 , and 2013 . Table 20.2 – Provision for Income Taxes Years Ended December 31, (In Thousands) 2015 2014 2013 Current Provision for Income Taxes Federal $ 144 $ 24 $ 3,490 State 167 17 142 Total Current Provision for Income Taxes 311 41 3,632 Deferred Provision for Income Taxes Federal (10,198 ) 703 7,316 State (459 ) — — Total Deferred Provision for (Benefit from) Income Taxes (10,657 ) 703 7,316 Total Provision for Income Taxes $ (10,346 ) $ 744 $ 10,948
Reconciliation of Statutory Tax Rate to Effective Tax Rate	The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at December 31, 2015 and 2014 . Table 20.3 – Reconciliation of Statutory Tax Rate to Effective Tax Rate December 31, 2015 December 31, 2014 December 31, 2013 Federal statutory rate 34.0 % 34.0 % 34.0 % State statutory rate, net of Federal tax effect 7.2 % 7.2 % 7.2 % Permanent differences in taxable (loss) income from GAAP income (20.3 )% (14.5 )% (1.9 )% Change in valuation allowance 6.1 % (0.1 )% (16.4 )% Dividends paid deduction (38.3 )% (25.9 )% (17.0 )% Effective Tax Rate (11.3 )% 0.7 % 5.9 %

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2015
Segment Reporting Information [Line Items]
Financial Information by Segment	The following tables present financial information by segment for the years ended December 31, 2015 , 2014 , and 2013 . Table 21.1 – Business Segment Financial Information Year Ended December 31, 2015 (In Thousands) Residential Mortgage Banking Residential Investments Commercial Mortgage Banking and Investments Corporate/ Other Total Interest income $ 52,260 $ 135,395 $ 46,933 $ 24,844 $ 259,432 Interest expense (17,207 ) (11,204 ) (13,809 ) (53,663 ) (95,883 ) Net interest income (loss) 35,053 124,191 33,124 (28,819 ) 163,549 Reversal of provision for loan losses — — 355 — 355 Non-interest income Mortgage banking and investment activities, net (1) 8,268 (20,089 ) 2,704 (1,268 ) (10,385 ) MSR income (loss), net — (3,922 ) — — (3,922 ) Other income — 3,192 — — 3,192 Realized gains, net — 36,369 — — 36,369 Total non-interest income, net 8,268 15,550 2,704 (1,268 ) 25,254 Direct operating expenses (43,182 ) (4,346 ) (11,331 ) (38,557 ) (97,416 ) Benefit from income taxes 4,169 847 1,452 3,878 10,346 Segment Contribution $ 4,308 $ 136,242 $ 26,304 $ (64,766 ) Net Income $ 102,088 Non-cash amortization income (expense) $ (186 ) $ 36,850 $ (267 ) $ (3,994 ) $ 32,403 Hedging allocations (1) 1,120 (1,070 ) — (50 ) — (1) Intersegment hedging allocation presented in the tables above is included in the mortgage banking and investment activities, net line item of the segment income statement for the year ended December 31, 2015 . Year Ended December 31, 2014 (In Thousands) Residential Mortgage Banking Residential Investments Commercial Mortgage Banking and Investments Corporate/ Total Interest income $ 58,272 $ 110,433 $ 47,567 $ 25,798 $ 242,070 Interest expense (12,776 ) (11,848 ) (15,836 ) (47,003 ) (87,463 ) Net interest income (loss) 45,496 98,585 31,731 (21,205 ) 154,607 Provision for loan losses — — (84 ) (877 ) (961 ) Non-interest income Mortgage banking and investment activities, net 21,554 (9,178 ) 13,440 (1,024 ) 24,792 MSR income (loss), net — (4,261 ) — — (4,261 ) Other income — 181 — 1,600 1,781 Realized gains, net — 13,777 — 1,701 15,478 Total non-interest income, net 21,554 519 13,440 2,277 37,790 Direct operating expenses (37,664 ) (3,681 ) (11,324 ) (37,454 ) (90,123 ) (Provision for) benefit from income taxes (1,774 ) 1,340 (234 ) (76 ) (744 ) Segment Contribution $ 27,612 $ 96,763 $ 33,529 $ (57,335 ) Net Income $ 100,569 Non-cash amortization income (expense) $ (181 ) $ 42,784 $ (673 ) $ (8,232 ) $ 33,698 Year Ended December 31, 2013 (In Thousands) Residential Mortgage Banking Residential Investments Commercial Mortgage Banking and Investments Corporate/ Total Interest income $ 52,517 $ 96,399 $ 43,420 $ 33,820 $ 226,156 Interest expense (10,167 ) (10,067 ) (12,677 ) (48,060 ) (80,971 ) Net interest income (loss) 42,350 86,332 30,743 (14,240 ) 145,185 Provision for loan losses — — (3,288 ) (1,449 ) (4,737 ) Non-interest income Mortgage banking and investment activities, net 79,431 (5,134 ) 23,101 (613 ) 96,785 MSR income (loss), net — 20,309 — — 20,309 Realized gains, net — 24,765 210 284 25,259 Total non-interest income, net 79,431 39,940 23,311 (329 ) 142,353 Direct operating expenses (22,880 ) (4,035 ) (9,579 ) (50,113 ) (86,607 ) Other expense — — — (12,000 ) (12,000 ) (Provision for) benefit from income taxes (5,947 ) (3,027 ) (3,827 ) 1,853 (10,948 ) Segment Contribution $ 92,954 $ 119,210 $ 37,360 $ (76,278 ) Net Income $ 173,246 Non-cash amortization income (expense) $ — $ 34,578 $ (798 ) $ (7,338 ) $ 26,442
Supplemental Balance Sheet	The following table presents supplemental information by segment at December 31, 2015 and December 31, 2014 . Table 21.3 – Supplemental Segment Information (In Thousands) Residential Mortgage Banking Residential Investments Commercial Mortgage Banking and Investments Corporate/ Other Total December 31, 2015 Residential loans $ 1,115,738 $ 1,791,195 $ — $ 1,021,870 $ 3,928,803 Commercial loans — — 402,647 — 402,647 Real estate securities 197,007 1,028,171 8,078 — 1,233,256 Mortgage servicing rights — 191,976 — — 191,976 Total assets 1,347,492 3,140,604 416,258 1,326,673 6,231,027 December 31, 2014 Residential loans $ 1,342,519 $ 581,668 $ — $ 1,474,386 $ 3,398,573 Commercial loans — — 566,927 — 566,927 Real estate securities 93,802 1,285,428 — — 1,379,230 Mortgage servicing rights — 139,293 — — 139,293 Total assets 1,468,856 2,057,256 575,943 1,816,911 5,918,966
Corporate and Other
Segment Reporting Information [Line Items]
Financial Information by Segment	The following table presents the components of Corporate/Other that are presented in the preceding tables for the years ended December 31, 2015 , 2014 , and 2013 . Years Ended December 31, 2015 2014 2013 (In Thousands) Legacy VIEs (1) Other Total Legacy VIEs (1) Other Total Legacy VIEs (1) Other Total Interest income $ 24,814 $ 30 $ 24,844 $ 25,786 $ 12 $ 25,798 $ 33,663 $ 157 $ 33,820 Interest expense (15,646 ) (38,017 ) (53,663 ) (20,844 ) (26,159 ) (47,003 ) (25,876 ) (22,184 ) (48,060 ) Net interest income (loss) 9,168 (37,987 ) (28,819 ) 4,942 (26,147 ) (21,205 ) 7,787 (22,027 ) (14,240 ) Provision for loan losses — — — (877 ) — (877 ) (1,449 ) — (1,449 ) Non-interest income Mortgage banking and investment activities, net (1,192 ) (76 ) (1,268 ) (894 ) (130 ) (1,024 ) (613 ) — (613 ) MSR income (loss), net — — — — — — — — — Other income — — — — 1,600 1,600 — — — Realized gains, net — — — 1,701 — 1,701 284 — 284 Total non-interest income, net (1,192 ) (76 ) (1,268 ) 807 1,470 2,277 (329 ) — (329 ) Direct operating expenses — (38,557 ) (38,557 ) (165 ) (37,289 ) (37,454 ) (231 ) (49,882 ) (50,113 ) Other expense — — — — — — — (12,000 ) (12,000 ) (Provision for) benefit from income taxes — 3,878 3,878 — (76 ) (76 ) — 1,853 1,853 Total $ 7,976 $ (72,742 ) $ (64,766 ) $ 4,707 $ (62,042 ) $ (57,335 ) $ 5,778 $ (82,056 ) $ (76,278 ) (1) Legacy VIEs represent legacy Sequoia entities that are consolidated for GAAP financial reporting purposes. See Note 4 for further discussion on VIEs.

Quarterly Financial Data - Un51

Quarterly Financial Data - Unaudited (Tables)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data	Three Months Ended (In Thousands, Except Per Share Data) December 31, September 30, June 30, March 31, 2015 Operating results: Interest income (1) $ 68,829 $ 63,484 $ 63,373 $ 63,746 Interest expense (25,039 ) (23,875 ) (23,008 ) (23,961 ) Net interest income 43,790 39,609 40,365 39,785 Non-interest income (loss) 19,593 (3,412 ) 14,104 (5,031 ) Operating expenses (22,638 ) (24,497 ) (25,218 ) (25,063 ) Net income 41,059 19,164 27,064 14,801 Per share data: Net income – basic $ 0.49 $ 0.22 $ 0.31 $ 0.17 Net income – diluted 0.46 0.22 0.31 0.16 Regular dividends declared per common share 0.28 0.28 0.28 0.28 2014 Operating results: Interest income $ 65,251 $ 63,351 $ 57,993 $ 55,475 Interest expense (23,903 ) (23,350 ) (21,151 ) (19,059 ) Net interest income 41,348 40,001 36,842 36,416 Non-interest income 10,686 28,519 1,475 (4,671 ) Operating expenses (26,462 ) (21,406 ) (22,282 ) (19,973 ) Net income 27,122 45,097 16,017 12,333 Per share data: Net income – basic $ 0.32 $ 0.53 $ 0.19 $ 0.14 Net income – diluted 0.31 0.50 0.18 0.14 Regular dividends declared per common share 0.28 0.28 0.28 0.28 (1) Interest income for both three-month periods ended December 31, 2015, and June 30, 2015, included $2 million of yield maintenance fees from commercial loans that prepaid during the quarters.

Organization (Detail)

Organization (Detail)	12 Months Ended
	Dec. 31, 2015Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	3

Principles of Consolidation - A

Principles of Consolidation - Assets and Liabilities of Consolidated Variable Interest Entity's (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)Investment	Dec. 31, 2014USD ($)Investment
Variable Interest Entity [Line Items]
Assets	$ 1,195,574	$ 1,900,208
Liabilities	$ 1,050,861	$ 1,546,490
Number of VIEs | Investment	22	26
Residential Loans Held for Investment
Variable Interest Entity [Line Items]
Assets	$ 1,021,870	$ 1,474,386
Commercial Loans Held For Investment
Variable Interest Entity [Line Items]
Assets	166,016	194,991
Real Estate Securities
Variable Interest Entity [Line Items]
Assets	0	221,676
Restricted Cash
Variable Interest Entity [Line Items]
Assets	365	327
Accrued Interest Receivable
Variable Interest Entity [Line Items]
Assets	2,428	4,347
Other Assets
Variable Interest Entity [Line Items]
Assets	4,895	4,481
Accrued Interest Payable
Variable Interest Entity [Line Items]
Liabilities	804	1,371
Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	100
Asset-backed Securities
Variable Interest Entity [Line Items]
Liabilities	1,049,957	1,545,119
Sequoia
Variable Interest Entity [Line Items]
Assets	1,028,124	1,481,303
Liabilities	$ 997,475	$ 1,417,738
Number of VIEs | Investment	21	24
Sequoia | Residential Loans Held for Investment
Variable Interest Entity [Line Items]
Assets	$ 1,021,870	$ 1,474,386
Sequoia | Restricted Cash
Variable Interest Entity [Line Items]
Assets	228	147
Sequoia | Accrued Interest Receivable
Variable Interest Entity [Line Items]
Assets	1,131	2,359
Sequoia | Other Assets
Variable Interest Entity [Line Items]
Assets	4,895	4,411
Sequoia | Accrued Interest Payable
Variable Interest Entity [Line Items]
Liabilities	555	976
Sequoia | Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	100
Sequoia | Asset-backed Securities
Variable Interest Entity [Line Items]
Liabilities	996,820	1,416,762
Residential Resecuritization
Variable Interest Entity [Line Items]
Assets	0	222,196
Liabilities	$ 0	$ 45,049
Number of VIEs | Investment	0	1
Residential Resecuritization | Real Estate Securities
Variable Interest Entity [Line Items]
Assets	$ 0	$ 221,676
Residential Resecuritization | Restricted Cash
Variable Interest Entity [Line Items]
Assets	0	43
Residential Resecuritization | Accrued Interest Receivable
Variable Interest Entity [Line Items]
Assets	0	477
Residential Resecuritization | Accrued Interest Payable
Variable Interest Entity [Line Items]
Liabilities	0	5
Residential Resecuritization | Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	0
Residential Resecuritization | Asset-backed Securities
Variable Interest Entity [Line Items]
Liabilities	0	45,044
Commercial Securitization
Variable Interest Entity [Line Items]
Assets	167,450	196,709
Liabilities	$ 53,386	$ 83,703
Number of VIEs | Investment	1	1
Commercial Securitization | Commercial Loans Held For Investment
Variable Interest Entity [Line Items]
Assets	$ 166,016	$ 194,991
Commercial Securitization | Restricted Cash
Variable Interest Entity [Line Items]
Assets	137	137
Commercial Securitization | Accrued Interest Receivable
Variable Interest Entity [Line Items]
Assets	1,297	1,511
Commercial Securitization | Other Assets
Variable Interest Entity [Line Items]
Assets	0	70
Commercial Securitization | Accrued Interest Payable
Variable Interest Entity [Line Items]
Liabilities	249	390
Commercial Securitization | Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	0
Commercial Securitization | Asset-backed Securities
Variable Interest Entity [Line Items]
Liabilities	$ 53,137	$ 83,313

Principles of Consolidation -54

Principles of Consolidation - Additional Information (Detail) - Entity	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Number of securitization entities to which asset transferred	4	4	12

Summary of Significant Accoun55

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Significant Accounting Policies [Line Items]
Risk-sharing arrangement term		10 years
Special Purpose Entities, assets		$ 63,000	$ 19,000
Special Purpose Entities, liabilities		$ 25,000	7,000
Incentive Plan, awards vesting period		3 years
Incentive Plan, mandatory holding period before awards vest		3 years
Employee Stock Purchase Plan, percentage of common stock fair value that employees can purchase		85.00%
Employees maximum 401(k) contribution		100.00%
Employer matching contributions		$ 800	600	$ 200
Minimum
Significant Accounting Policies [Line Items]
Percentage of losses assumed on pool of loans sold	1.00%
Incentive Plan, awards vesting period		3 years
Maximum
Significant Accounting Policies [Line Items]
Percentage of losses assumed on pool of loans sold	2.25%
Incentive Plan, awards vesting period		4 years
Accounting Standards Update 2014-13
Significant Accounting Policies [Line Items]
Cumulative effect adjustment - adoption of ASU 2014-13			9,728
Accounting Standards Update 2014-13 | Cumulative Earnings
Significant Accounting Policies [Line Items]
Cumulative effect adjustment - adoption of ASU 2014-13			$ 9,728

Principles of Consolidation - S

Principles of Consolidation - Securitization Activity Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Variable Interest Entity [Line Items]
MSRs recognized	$ 64,725	$ 48,000	$ 44,063
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Principal balance of loans transferred	1,375,532	1,324,419
MSRs recognized	8,202	8,518
Variable Interest Entity, Not Primary Beneficiary | Trading Securities
Variable Interest Entity [Line Items]
Securities retained, at fair value	252,222	77,160
Variable Interest Entity, Not Primary Beneficiary | Available-for-sale Securities
Variable Interest Entity [Line Items]
Securities retained, at fair value	$ 7,852	$ 78,218

Summary of Significant Accoun57

Summary of Significant Accounting Policies - Effect of ASU 2014-13 on Balance Sheet (Details) (Details) - USD ($) $ in Thousands		Dec. 31, 2015	Dec. 31, 2014
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Residential loans		$ 3,928,803	$ 3,398,573
Other assets	[1]	197,886	113,896
Total assets	[1]	6,231,027	5,918,966
ABS issued	[1],[2]	1,049,957	1,545,119
Total liabilities	[1]	5,084,762	4,662,825
Residential Loans Held for Investment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Principal value		1,122,415	1,483,213
Residential loans		$ 1,021,870	1,474,386
Variable Interest Entity, Primary Beneficiary
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Principal value			1,486,000
Loan unamortized premium			0
Allowance for loan losses			0
Loan market valuation adjustment			113,000
Deferred bond issuance costs			0
Other assets			5,000
Total assets			1,377,000
ABS issued			1,428,000
ABS issued unamortized discount			0
ABS valuation adjustment			(125,000)
Total liabilities			1,303,000
Redwood's investment in consolidated Sequoia entities			74,000
Variable Interest Entity, Primary Beneficiary | Residential Loans Held for Investment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Residential loans			1,373,000
Variable Interest Entity, Primary Beneficiary | Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Principal value			1,486,000
Loan unamortized premium			13,000
Allowance for loan losses			21,000
Loan market valuation adjustment			0
Deferred bond issuance costs			1,000
Other assets			5,000
Total assets			1,482,000
ABS issued			1,428,000
ABS issued unamortized discount			10,000
ABS valuation adjustment			0
Total liabilities			1,418,000
Redwood's investment in consolidated Sequoia entities			64,000
Variable Interest Entity, Primary Beneficiary | Previously Reported | Residential Loans Held for Investment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Residential loans			1,478,000
Variable Interest Entity, Primary Beneficiary | ASU 2014-13 Adjustment | Accounting Standards Update 2014-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Principal value			0
Loan unamortized premium			(13,000)
Allowance for loan losses			(21,000)
Loan market valuation adjustment			113,000
Deferred bond issuance costs			(1,000)
Other assets			0
Total assets			(105,000)
ABS issued			0
ABS issued unamortized discount			(10,000)
ABS valuation adjustment			(125,000)
Total liabilities			(115,000)
Redwood's investment in consolidated Sequoia entities			10,000
Variable Interest Entity, Primary Beneficiary | ASU 2014-13 Adjustment | Accounting Standards Update 2014-13 | Residential Loans Held for Investment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Residential loans			$ (105,000)
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.
[2]	On January 1, 2015, we adopted ASU 2014-13 and began to account for residential loans held-for-investment and asset backed securities issued at consolidated Sequoia entities (which are VIEs) at fair value. At December 31, 2014, amounts presented in residential loans held-for-investment for these assets included $1,474,386 at historical cost. See Note 3 for further discussion.

Principles of Consolidation - C

Principles of Consolidation - Cash Flows Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Variable Interest Entity [Line Items]
Cash proceeds	$ 1,139,052	$ 1,201,411
MSR fees received	14,874	13,812
Funding of compensating interest	(363)	(227)
Cash flows received on retained securities	$ 43,460	$ 56,870

Summary of Significant Accoun59

Summary of Significant Accounting Policies - Offsetting of Financial Assets, Liabilities, and Collateral (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Assets	$ 11,722	$ 15,257
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in Consolidated Balance Sheet	11,722	15,257
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	(7,549)	(6,975)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received	(2,930)	(4,735)
Net Amount	1,243	3,547
Gross Amounts of Recognized Liabilities	(1,778,711)	(1,851,876)
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet	(1,778,711)	(1,851,876)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	1,724,930	1,800,800
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged	53,167	50,100
Net Amount	(614)	(976)
Interest Rate Swaps
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Assets	7,781	7,006
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in Consolidated Balance Sheet	7,781	7,006
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	(5,651)	(1,160)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received	(1,917)	(4,360)
Net Amount	213	1,486
Gross Amounts of Recognized Liabilities	(58,366)	(48,173)
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet	(58,366)	(48,173)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	5,651	1,160
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged	52,715	47,013
Net Amount	0	0
Credit default index swaps
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Assets	1,207	1,598
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in Consolidated Balance Sheet	1,207	1,598
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	0	0
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received	(720)	(375)
Net Amount	487	1,223
TBAs
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Assets	2,734	6,653
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in Consolidated Balance Sheet	2,734	6,653
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	(1,898)	(5,815)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received	(293)	0
Net Amount	543	838
Gross Amounts of Recognized Liabilities	(2,519)	(9,506)
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet	(2,519)	(9,506)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	1,898	5,815
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged	7	2,715
Net Amount	(614)	(976)
Futures
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	(445)	(372)
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet	(445)	(372)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	0	0
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged	445	372
Net Amount	0	0
Loan warehouse debt
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	(1,023,740)	(1,185,316)
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet	(1,023,740)	(1,185,316)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	1,023,740	1,185,316
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged	0	0
Net Amount		0
Security repurchase agreements
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	(693,641)	(608,509)
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet	(693,641)	(608,509)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	693,641	608,509
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged	0	0
Net Amount	$ 0	$ 0

Principles of Consolidation -60

Principles of Consolidation - Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Mortgage Servicing Rights | Variable Interest Entity, Not Primary Beneficiary
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Discount rates	11.00%	11.00%
Mortgage Servicing Rights | Variable Interest Entity, Not Primary Beneficiary | Minimum
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Prepayment speeds	5.00%	5.00%
Mortgage Servicing Rights | Variable Interest Entity, Not Primary Beneficiary | Maximum
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Prepayment speeds	15.00%	16.00%
Senior Securities
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities, Expected Credit Losses		0.25%
Senior Securities | Minimum
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities, Expected Credit Losses	0.10%
Senior Securities | Maximum
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities, Expected Credit Losses	0.25%
Senior Securities | Variable Interest Entity, Not Primary Beneficiary
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Discount rates	3.00%	3.00%
Senior Securities | Variable Interest Entity, Not Primary Beneficiary | Minimum
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Prepayment speeds	8.00%	8.00%
Senior Securities | Variable Interest Entity, Not Primary Beneficiary | Maximum
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Prepayment speeds	10.00%	10.00%
Subordinate Securities
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities, Expected Credit Losses	0.25%	0.25%
Subordinate Securities | Minimum
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities, Expected Credit Losses	0.10%
Subordinate Securities | Variable Interest Entity, Not Primary Beneficiary
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Discount rates	6.00%	5.00%
Subordinate Securities | Variable Interest Entity, Not Primary Beneficiary | Minimum
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Prepayment speeds	8.00%	8.00%
Subordinate Securities | Variable Interest Entity, Not Primary Beneficiary | Maximum
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Prepayment speeds	10.00%	10.00%

Principles of Consolidation -61

Principles of Consolidation - Summary of Unconsolidated Variable Interest Entity's Sponsored by Redwood (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
On-balance sheet assets, at fair value:
Maximum loss exposure	$ 588,396	$ 611,593
Principal balance of loans outstanding	7,318,167	7,276,825
Principal balance of delinquent loans 30+ days delinquent	18,300	17,022
Interest-Only and Senior Securities
On-balance sheet assets, at fair value:
Securities	258,697	93,802
Senior and Subordinate Securities
On-balance sheet assets, at fair value:
Securities	272,715	460,990
Mortgage Servicing Rights
On-balance sheet assets, at fair value:
Securities	$ 56,984	$ 56,801

Principles of Consolidation - K

Principles of Consolidation - Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated Variable Interest Entity's Sponsored by Redwood (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Mortgage Servicing Rights
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value	$ 56,984	$ 56,801
Expected life (in years)	7 years	7 years
Prepayment speed assumption (annual CPR)	11.00%	14.00%
Decrease in fair value from:
10% adverse change	$ 2,868	$ 2,419
25% adverse change	$ 6,119	$ 5,639
Discount rate assumption	11.00%	11.00%
Decrease in fair value from:
100 basis point increase	$ 2,711	$ 2,104
200 basis point increase	4,745	4,102
Senior Securities
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value	$ 248,570	$ 93,802
Expected life (in years)	5 years	6 years
Prepayment speed assumption (annual CPR)	10.00%	9.00%
Decrease in fair value from:
10% adverse change	$ 2,042	$ 3,999
25% adverse change	$ 4,810	$ 9,475
Discount rate assumption	5.00%	8.00%
Decrease in fair value from:
100 basis point increase	$ 10,029	$ 4,214
200 basis point increase	$ 19,365	$ 8,091
Credit loss assumption	0.25%	0.25%
Decrease in fair value from:
10% higher losses	$ 35	$ 126
25% higher losses	86	299
Subordinate Securities
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value	$ 282,842	$ 460,990
Expected life (in years)	12 years	10 years
Prepayment speed assumption (annual CPR)	12.00%	10.00%
Decrease in fair value from:
10% adverse change	$ 901	$ 684
25% adverse change	$ 2,278	$ 2,355
Discount rate assumption	6.00%	5.00%
Decrease in fair value from:
100 basis point increase	$ 21,981	$ 34,149
200 basis point increase	$ 41,156	$ 64,474
Credit loss assumption	0.25%	0.25%
Decrease in fair value from:
10% higher losses	$ 1,244	$ 3,169
25% higher losses	3,129	7,841
Interest Only Securities
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value	$ 31,000	$ 88,000

Principles of Consolidation -63

Principles of Consolidation - Summary of Redwood's Interest in Third-Party Variable Interest Entity's (Detail) - Real Estate Securities $ in Thousands	Dec. 31, 2015USD ($)
Variable Interest Entity [Line Items]
Assets	$ 701,845
Senior Securities
Variable Interest Entity [Line Items]
Assets	285,033
Re-REMIC
Variable Interest Entity [Line Items]
Assets	165,064
Subordinate Securities
Variable Interest Entity [Line Items]
Assets	$ 251,748

Principles of Consolidation - L

Principles of Consolidation - Loan Transfers Accounted as Secured Borrowings (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2014USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principal balance	$ 63
Cash proceeds	$ 65

Fair Value of Financial Instr65

Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values of Assets and Liabilities (Detail) - USD ($) $ in Thousands		Dec. 31, 2015	Dec. 31, 2014
Assets
Trading securities		$ 404,011	$ 111,606
Available-for-sale securities		829,245	1,267,624
MSRs	[1]	191,976	139,293
Derivative assets	[1]	16,393	16,417
Pledged collateral		53,600	9,927
Liabilities
Margin payable		6,415	6,455
Derivative liabilities	[1]	62,794	58,331
Carrying Value
Assets
Trading securities		404,011	111,606
Available-for-sale securities		829,245	1,267,624
MSRs		191,976	139,293
Cash and cash equivalents		220,229	269,730
Restricted cash		5,567	628
Accrued interest receivable		23,290	18,222
Derivative assets		16,393	16,417
REO		4,896	4,391
Margin receivable		83,191	65,374
FHLBC stock		34,437	10,688
Guarantees asset		5,697	7,201
Pledged collateral		53,600	9,927
Liabilities
Short-term debt		1,855,003	1,793,825
Accrued interest payable		8,936	8,502
Margin payable		6,415	6,455
Guarantee obligation		22,704	7,201
Derivative liabilities		62,794	58,331
ABS issued, Fair value		996,820	0
ABS issued, Amortized cost		53,137	1,545,119
FHLBC long-term borrowings		1,343,023	495,860
Commercial secured borrowings		63,152	66,707
Convertible notes		492,500	492,500
Other long-term debt		139,500	139,500
Carrying Value | Residential Loans at Fair Value
Assets
Loans, held-for-sale		1,114,305	1,341,032
Carrying Value | Residential Loans at Lower of Cost or Fair Value
Assets
Loans, held-for-sale		1,433	1,488
Carrying Value | Residential Loans Held For Investment at Fair Value
Assets
Loans, held-for-investment		2,813,065	581,668
Carrying Value | Residential Loans Held For Investment At Amortized Cost
Assets
Loans, held-for-investment		0	1,474,386
Carrying Value | Commercial Loans Held For Sale
Assets
Loans, held-for-sale		39,141	166,234
Carrying Value | Commercial Loans Held-for-Investment, at Fair Value
Assets
Loans, held-for-investment		67,657	71,262
Carrying Value | Commercial Loans Held-for-Investment, at Amortized Cost
Assets
Loans, held-for-investment		295,849	329,431
Fair Value
Assets
Trading securities		404,011	111,606
Available-for-sale securities		829,245	1,267,624
MSRs		191,976	139,293
Cash and cash equivalents		220,229	269,730
Restricted cash		5,567	628
Accrued interest receivable		23,290	18,222
Derivative assets		16,393	16,417
REO		5,282	4,703
Margin receivable		83,191	65,374
FHLBC stock		34,437	10,688
Guarantees asset		5,697	7,201
Pledged collateral		53,600	9,927
Liabilities
Short-term debt		1,855,003	1,793,825
Accrued interest payable		8,936	8,502
Margin payable		6,415	6,455
Guarantee obligation		22,702	7,201
Derivative liabilities		62,794	58,331
ABS issued, Fair value		996,820	0
ABS issued, Amortized cost		53,137	1,446,605
FHLBC long-term borrowings		1,343,023	495,860
Commercial secured borrowings		63,152	66,707
Convertible notes		461,053	492,188
Other long-term debt		83,700	101,835
Fair Value | Residential Loans at Fair Value
Assets
Loans, held-for-sale		1,114,305	1,341,032
Fair Value | Residential Loans at Lower of Cost or Fair Value
Assets
Loans, held-for-sale		1,635	1,669
Fair Value | Residential Loans Held For Investment at Fair Value
Assets
Loans, held-for-investment		2,813,065	581,668
Fair Value | Residential Loans Held For Investment At Amortized Cost
Assets
Loans, held-for-investment		0	1,381,918
Fair Value | Commercial Loans Held For Sale
Assets
Loans, held-for-sale		39,141	166,234
Fair Value | Commercial Loans Held-for-Investment, at Fair Value
Assets
Loans, held-for-investment		67,657	71,262
Fair Value | Commercial Loans Held-for-Investment, at Amortized Cost
Assets
Loans, held-for-investment		300,824	334,876
Fair Value, Measurements, Recurring
Assets
Trading securities		404,011	111,606
Available-for-sale securities		829,245	1,267,624
MSRs		191,976	139,293
Derivative assets		16,393	16,417
FHLBC stock		34,437	10,688
Guarantees asset		5,697	7,201
Pledged collateral		53,600	9,927
Liabilities
Derivative liabilities		62,794	58,331
ABS issued, Fair value		996,820
Level 1 | Fair Value, Measurements, Recurring
Assets
Trading securities			0
Available-for-sale securities			0
MSRs			0
Derivative assets		2,734	6,654
FHLBC stock		0	0
Pledged collateral		53,600	9,927
Liabilities
Derivative liabilities		$ 2,963	$ 9,878
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr66

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Dealer marks of securities	79.00%
Percentage of carrying value for which dealer quotes were received on securities	94.00%
Residential Subordinate Securities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 164,000,000	$ 9,000,000
Commercial Loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	618,000,000	935,000,000
Guarantee Asset
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	0	7,000,000
Residential Senior Securities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	236,000,000	72,000,000
Residential Loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	10,210,000,000	8,810,000,000
Mortgage Servicing Rights
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 95,000,000	$ 96,000,000
Mortgage Servicing Rights | Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Percentage difference of internal valuation than dealer marks	1.00%

Fair Value of Financial Instr67

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014
Assets
Trading securities		$ 404,011	$ 111,606
Available-for-sale securities		829,245	1,267,624
Derivative assets	[1]	16,393	16,417
MSRs	[1]	191,976	139,293
Pledged collateral		53,600	9,927
Liabilities
Derivative liabilities	[1]	62,794	58,331
Commercial secured borrowings		63,152	66,707
Fair Value, Measurements, Recurring
Assets
Trading securities		404,011	111,606
Available-for-sale securities		829,245	1,267,624
Derivative assets		16,393	16,417
MSRs		191,976	139,293
Pledged collateral		53,600	9,927
FHLBC stock		34,437	10,688
Guarantees asset		5,697	7,201
Liabilities
Derivative liabilities		62,794	58,331
Commercial secured borrowings		63,152	66,707
ABS issued		996,820
Fair Value, Measurements, Recurring | Residential Loans at Fair Value
Assets
Loans at fair value		3,927,370	1,922,700
Fair Value, Measurements, Recurring | Commercial Loans at Fair Value
Assets
Loans at fair value		106,798	237,496
Fair Value, Measurements, Recurring | Level 1
Assets
Trading securities			0
Available-for-sale securities			0
Derivative assets		2,734	6,654
MSRs			0
Pledged collateral		53,600	9,927
FHLBC stock		0	0
Liabilities
Derivative liabilities		2,963	9,878
Commercial secured borrowings			0
Fair Value, Measurements, Recurring | Level 1 | Residential Loans at Fair Value
Assets
Loans at fair value			0
Fair Value, Measurements, Recurring | Level 1 | Commercial Loans at Fair Value
Assets
Loans at fair value			0
Fair Value, Measurements, Recurring | Level 2
Assets
Trading securities			0
Available-for-sale securities			0
Derivative assets		8,988	8,603
MSRs			0
Pledged collateral			0
FHLBC stock		34,437	10,688
Liabilities
Derivative liabilities		58,368	48,412
Commercial secured borrowings			0
Fair Value, Measurements, Recurring | Level 2 | Residential Loans at Fair Value
Assets
Loans at fair value		129,819	244,716
Fair Value, Measurements, Recurring | Level 2 | Commercial Loans at Fair Value
Assets
Loans at fair value			0
Fair Value, Measurements, Recurring | Level 3
Assets
Trading securities		404,011	111,606
Available-for-sale securities		829,245	1,267,624
Derivative assets		4,671	1,160
MSRs		191,976	139,293
Pledged collateral			0
FHLBC stock			0
Guarantees asset		5,697	7,201
Liabilities
Derivative liabilities		1,463	41
Commercial secured borrowings		63,152	66,707
ABS issued		996,820
Fair Value, Measurements, Recurring | Level 3 | Residential Loans at Fair Value
Assets
Loans at fair value		3,797,551	1,677,984
Fair Value, Measurements, Recurring | Level 3 | Commercial Loans at Fair Value
Assets
Loans at fair value		$ 106,798	$ 237,496
Range 1 | Fixed Loans | Commercial Loans Held-for-Investment, at Fair Value
Assets
Interest Rate		10.00%	10.00%
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr68

Fair Value of Financial Instruments - Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Commercial Secured Borrowings
Derivatives
Ending balance	$ 63,152
Liabilities
Beginning balance	66,707	$ 0
Transfer to FVO	0
Acquisitions	0	65,048
Sales	0	0
Principal paydowns	(593)	(374)
Amortization income		0
Gains (losses) in net income, net	(3,011)	2,033
Unrealized gains in OCI, net	0	0
Other settlements, net	49	0
Ending Balance	63,152	66,707
Asset-backed Securities
Assets
Unrealized gains in OCI, net	0
Derivatives
Ending balance	996,820
Liabilities
Beginning balance	0
Transfer to FVO	1,302,216
Acquisitions	0
Sales	(1,362)
Principal paydowns	(312,800)
Gains (losses) in net income, net	8,366
Other settlements, net	400
Ending Balance	996,820	0
Residential Loans at Fair Value
Assets
Beginning balance	1,677,984	391,100
Transfer to FVO	1,370,699
Acquisitions	5,231,532	5,020,988
Sales	(3,857,807)	(3,746,417)
Principal paydowns	(612,473)	(42,657)
Amortization income		0
Gains (losses) in net income, net	(6,071)	56,835
Unrealized gains in OCI, net	0	0
Other settlements, net	(6,313)	(1,865)
Ending Balance	3,797,551	1,677,984
Commercial Loans
Assets
Beginning balance	237,496	89,111
Transfer to FVO	0
Acquisitions	617,519	937,594
Sales	(754,636)	(807,931)
Principal paydowns	(780)	(4,157)
Amortization income		0
Gains (losses) in net income, net	7,199	22,824
Unrealized gains in OCI, net	0	0
Other settlements, net	0	55
Ending Balance	106,798	237,496
Trading Securities
Assets
Beginning balance	111,606	124,555
Transfer to FVO	0
Acquisitions	399,990	81,545
Sales	(83,038)	(64,393)
Principal paydowns	(7,245)	(5,934)
Amortization income		0
Gains (losses) in net income, net	(17,302)	(24,167)
Unrealized gains in OCI, net	0	0
Other settlements, net	0	0
Ending Balance	404,011	111,606
Available-for-sale Securities
Assets
Beginning balance	1,267,624	1,558,306
Transfer to FVO	0
Acquisitions	33,370	237,499
Sales	(366,373)	(440,361)
Principal paydowns	(131,387)	(168,308)
Amortization income		32,774
Gains (losses) in net income, net	72,612	23,412
Unrealized gains in OCI, net	(46,961)	24,302
Other settlements, net	360	0
Ending Balance	829,245	1,267,624
Mortgage Servicing Rights
Assets
Beginning balance	139,293	64,824
Transfer to FVO	0
Acquisitions	95,281	95,550
Sales	(18,206)	0
Principal paydowns	0	0
Amortization income		0
Gains (losses) in net income, net	(24,392)	(21,081)
Unrealized gains in OCI, net	0	0
Other settlements, net	0	0
Ending Balance	191,976	139,293
Derivatives
Ending balance	191,976
Guarantee Asset
Assets
Beginning balance	7,201	0
Transfer to FVO	0
Acquisitions	0	7,201
Sales	0	0
Principal paydowns	0	0
Amortization income		0
Gains (losses) in net income, net	(1,377)	0
Unrealized gains in OCI, net	0	0
Other settlements, net	(127)	0
Ending Balance	5,697	7,201
Derivative Assets
Assets
Beginning balance	1,119
Transfer to FVO	0
Acquisitions	0
Sales	0
Principal paydowns	0
Gains (losses) in net income, net	60,823
Unrealized gains in OCI, net	0
Other settlements, net	(58,734)
Ending Balance	3,208	1,119
Derivatives
Beginning balance	$ 1,119	(379)
Acquisitions		0
Sales		0
Principal paydowns		0
Amortization income		0
Gains (losses) in net income, net		14,527
Unrealized gains in OCI, net		0
Other settlements, net		(13,029)
Ending balance		$ 1,119

Fair Value of Financial Instr69

Fair Value of Financial Instruments - Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held Included in Net Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Loan Purchase Commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included In Earnings, Excluding Sold, Matured, Called, Or Written Down	$ 0	$ 0	$ (379)
Asset-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 liabilities still held included in net income	8,366
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included In Earnings, Excluding Sold, Matured, Called, Or Written Down	(8,366)
Commercial Secured Borrowings
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 liabilities still held included in net income	(3,011)	2,033
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included In Earnings, Excluding Sold, Matured, Called, Or Written Down	3,011	2,033	0
Residential Loans Held For Investment at Fair Value | Residential Loans Held At Redwood
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included In Earnings, Excluding Sold, Matured, Called, Or Written Down	(5,541)	16,512	(290)
Residential Loans Held For Investment at Fair Value | Residential Loans At Consolidated Sequoia Entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included In Earnings, Excluding Sold, Matured, Called, Or Written Down	7,422	0	0
Commercial Loans at Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included In Earnings, Excluding Sold, Matured, Called, Or Written Down	(2,620)	3,357	1,501
Trading Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included In Earnings, Excluding Sold, Matured, Called, Or Written Down	(13,391)	(25,216)	32,496
Available-for-sale Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included In Earnings, Excluding Sold, Matured, Called, Or Written Down	(246)	(434)	(1,108)
Mortgage Servicing Rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included In Earnings, Excluding Sold, Matured, Called, Or Written Down	(3,471)	(15,239)	14,196
Loan Purchase Commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included In Earnings, Excluding Sold, Matured, Called, Or Written Down	4,252	1,119
Guarantee Asset
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included In Earnings, Excluding Sold, Matured, Called, Or Written Down	$ (1,504)	$ 0	$ 0

Fair Value of Financial Instr70

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Detail) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Residential loans, at lower of cost or fair value	$ 1,096	$ 1,104
REO	2,395	2,069
Guarantee obligation	4,414	7,201
Level 3
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Residential loans, at lower of cost or fair value	1,096	1,104
REO	2,395	2,069
Guarantee obligation	4,414	7,201
Residential Loans at Lower of Cost or Fair Value
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Gain (Loss) on assets measured at fair value on a non-recurring basis	3	(1)
REO
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Gain (Loss) on assets measured at fair value on a non-recurring basis	$ (764)	$ (320)

Fair Value of Financial Instr71

Fair Value of Financial Instruments - Market Valuation Adjustments, Net (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	$ (3,922)	$ (4,261)	$ 20,309
Total Market Valuation Adjustments, Net	(51,975)	(298)	97,701
Mortgage Banking And Investment Activities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(14,875)	20,783	85,706
Mortgage Banking And Investment Activities | Residential Loans at Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	3,712	51,312	(10,455)
Mortgage Banking And Investment Activities | Loan Purchase and Forward Sales Commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	50,234	13,891	(399)
Mortgage Banking And Investment Activities | Residential Loans Held for Investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(6,337)	(697)	0
Mortgage Banking And Investment Activities | Investments In Consolidated Variable Interest Entity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(1,192)	(894)	(612)
Mortgage Banking And Investment Activities | Commercial Loans at Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	10,265	20,788	8,694
Mortgage Banking And Investment Activities | Real estate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(17,279)	(24,197)	38,926
Mortgage Banking And Investment Activities | Impaired Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(246)	(565)	(1,833)
Mortgage Banking And Investment Activities | Risk management derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(52,146)	(38,959)	51,385
Mortgage Banking And Investment Activities | Guarantee Asset
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(1,504)	0	0
Mortgage Banking And Investment Activities | Other Financing Receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(382)	104	0
Mortgage Servicing Rights Income (Loss), Including Risk Management Derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	(37,100)	(21,081)	11,995
Mortgage Servicing Rights Income (Loss), Including Risk Management Derivatives | Risk management derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	(12,708)	0	0
Mortgage Servicing Rights Income (Loss), Including Risk Management Derivatives | Mortgage Servicing Rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	$ (24,392)	$ (21,081)	$ 11,995

Fair Value of Financial Instr72

Fair Value of Financial Instruments - Quantitative Information about Significant Unobservable Inputs Used in Valuation of Level 3 Assets and Liabilities Measured at Fair Value (Detail)	12 Months Ended
	Dec. 31, 2015USD ($)$ / loan
Residential Loans at Lower of Cost or Fair Value
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,096,000
Residential Loans at Lower of Cost or Fair Value | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity, percent	13.00%
Residential Loans at Lower of Cost or Fair Value | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity, percent	30.00%
Residential Loans at Lower of Cost or Fair Value | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity, percent	21.00%
Loan Purchase Commitments
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 3,208,000
Loan Purchase Commitments | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to TBA price (usd per loan) | $ / loan	3.10
Prepayment rate, percent	15.00%
MSR Multiple	0
Fallout rate, percent	1.00%
Loan Purchase Commitments | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to TBA price (usd per loan) | $ / loan	4.38
Prepayment rate, percent	15.00%
MSR Multiple	6
Fallout rate, percent	99.00%
Loan Purchase Commitments | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to TBA price (usd per loan) | $ / loan	4.16
Prepayment rate, percent	15.00%
MSR Multiple	3.4
Fallout rate, percent	25.00%
REO
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 2,395,000
REO | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity, percent	0.00%
REO | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity, percent	89.00%
REO | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity, percent	51.00%
Guarantee Asset
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 5,697,000
Guarantee Asset | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate, percent	12.00%
Discount rate, percent	11.00%
Guarantee Asset | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate, percent	12.00%
Discount rate, percent	11.00%
Guarantee Asset | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate, percent	12.00%
Discount rate, percent	11.00%
Mortgage Servicing Rights
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 191,976,000
Mortgage Servicing Rights | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate, percent	5.00%
Discount rate, percent	9.00%
Per loan annual cost to service (usd per loan)	$ 72
Mortgage Servicing Rights | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate, percent	60.00%
Discount rate, percent	12.00%
Per loan annual cost to service (usd per loan)	$ 82
Mortgage Servicing Rights | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate, percent	10.00%
Discount rate, percent	10.00%
Per loan annual cost to service (usd per loan)	$ 79
Investment Securities [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,233,256,000
Investment Securities [Member] | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate, percent	1.00%
Loss severity, percent	20.00%
Credit support, percent	0.00%
Discount rate, percent	5.00%
Default rate, percent	0.00%
Investment Securities [Member] | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate, percent	35.00%
Loss severity, percent	65.00%
Credit support, percent	48.00%
Discount rate, percent	12.00%
Default rate, percent	35.00%
Investment Securities [Member] | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate, percent	12.00%
Loss severity, percent	29.00%
Credit support, percent	4.00%
Discount rate, percent	6.00%
Default rate, percent	6.00%
Commercial Loans at Fair Value
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 106,798,000
Commercial Loans at Fair Value | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate, percent	2.21%
Credit support, percent	26.00%
Commercial Loans at Fair Value | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate, percent	2.21%
Credit support, percent	26.00%
Commercial Loans at Fair Value | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate, percent	2.21%
Credit support, percent	26.00%
Residential Loans Priced To Whole Loan Market and Committed to Sell [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 633,310,000
Residential Loans Priced To Whole Loan Market and Committed to Sell [Member] | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Committed Sales Price (usd per loan) | $ / loan	102.56
Residential Loans Priced To Whole Loan Market and Committed to Sell [Member] | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Committed Sales Price (usd per loan) | $ / loan	102.61
Residential Loans Priced To Whole Loan Market and Committed to Sell [Member] | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Committed Sales Price (usd per loan) | $ / loan	102.58
Residential Loans Priced To Securitization and Whole Loan Market, Uncommitted to Sell [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,936,062,000
Residential Loans Priced To Securitization and Whole Loan Market, Uncommitted to Sell [Member] | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to TBA price (usd per loan) | $ / loan	3.10
Residential Loans Priced To Securitization and Whole Loan Market, Uncommitted to Sell [Member] | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to TBA price (usd per loan) | $ / loan	4.53
Residential Loans Priced To Securitization and Whole Loan Market, Uncommitted to Sell [Member] | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to TBA price (usd per loan) | $ / loan	4.27
Residential Jumbo Hybrid Loans Priced To Whole Loan Market Uncommitted To Sell
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 206,309,000
Residential Jumbo Hybrid Loans Priced To Whole Loan Market Uncommitted To Sell | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate, percent	15.00%
Spread to swap rate, percent	1.25%
Residential Jumbo Hybrid Loans Priced To Whole Loan Market Uncommitted To Sell | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate, percent	15.00%
Spread to swap rate, percent	1.65%
Residential Jumbo Hybrid Loans Priced To Whole Loan Market Uncommitted To Sell | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate, percent	15.00%
Spread to swap rate, percent	1.38%
Residential Loans Held For Investment at Fair Value
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,021,870,000
Loan Purchase Commitments | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate, percent	1.25%
Loan Purchase Commitments | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate, percent	1.65%
Loan Purchase Commitments | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate, percent	1.37%
Asset-backed Securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 996,820,000
Asset-backed Securities | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate, percent	2.00%
Loss severity, percent	20.00%
Credit support, percent	0.00%
Discount rate, percent	5.00%
Default rate, percent	1.00%
Asset-backed Securities | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate, percent	23.00%
Loss severity, percent	32.00%
Credit support, percent	33.00%
Discount rate, percent	9.00%
Default rate, percent	12.00%
Asset-backed Securities | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate, percent	12.00%
Loss severity, percent	27.00%
Credit support, percent	9.00%
Discount rate, percent	5.00%
Default rate, percent	7.00%
Commercial Secured Borrowings
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 63,152,000
Commercial Secured Borrowings | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate, percent	2.19%
Credit support, percent	25.00%
Commercial Secured Borrowings | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate, percent	2.20%
Credit support, percent	25.00%
Commercial Secured Borrowings | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate, percent	2.20%
Credit support, percent	25.00%

Residential Loans - Summary of

Residential Loans - Summary of Classifications and Carrying Value of Residential Loans (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Mortgage Loans on Real Estate [Line Items]
Residential loans	$ 3,928,803	$ 3,398,573
Residential Loans at Fair Value
Mortgage Loans on Real Estate [Line Items]
Residential loans	1,110,000	1,340,000
Residential Loans at Fair Value | Conforming Loan
Mortgage Loans on Real Estate [Line Items]
Residential loans	129,819	244,714
Residential Loans at Fair Value | Jumbo Loan
Mortgage Loans on Real Estate [Line Items]
Residential loans	984,486	1,096,317
Residential Loans at Lower of Cost or Fair Value
Mortgage Loans on Real Estate [Line Items]
Residential loans	1,433	1,488
Residential Loans Held For Investment at Fair Value
Mortgage Loans on Real Estate [Line Items]
Residential loans	1,790,000	580,000
Residential Loans Held For Investment at Fair Value | Jumbo Loan
Mortgage Loans on Real Estate [Line Items]
Residential loans	2,813,065	581,668
Residential Loans Held For Investment At Amortized Cost
Mortgage Loans on Real Estate [Line Items]
Residential loans		1,474,386
Redwood
Mortgage Loans on Real Estate [Line Items]
Residential loans	2,906,933	1,924,187
Redwood | Residential Loans at Fair Value | Conforming Loan
Mortgage Loans on Real Estate [Line Items]
Residential loans	129,819	244,714
Redwood | Residential Loans at Fair Value | Jumbo Loan
Mortgage Loans on Real Estate [Line Items]
Residential loans	984,486	1,096,317
Redwood | Residential Loans at Lower of Cost or Fair Value
Mortgage Loans on Real Estate [Line Items]
Residential loans	1,433	1,488
Redwood | Residential Loans Held For Investment at Fair Value | Jumbo Loan
Mortgage Loans on Real Estate [Line Items]
Residential loans	1,791,195	581,668
Redwood | Residential Loans Held For Investment At Amortized Cost
Mortgage Loans on Real Estate [Line Items]
Residential loans		0
Sequoia
Mortgage Loans on Real Estate [Line Items]
Residential loans	1,021,870	1,474,386
Sequoia | Residential Loans at Fair Value | Conforming Loan
Mortgage Loans on Real Estate [Line Items]
Residential loans	0	0
Sequoia | Residential Loans at Fair Value | Jumbo Loan
Mortgage Loans on Real Estate [Line Items]
Residential loans	0	0
Sequoia | Residential Loans at Lower of Cost or Fair Value
Mortgage Loans on Real Estate [Line Items]
Residential loans	0	0
Sequoia | Residential Loans Held For Investment at Fair Value | Jumbo Loan
Mortgage Loans on Real Estate [Line Items]
Residential loans	$ 1,021,870	0
Sequoia | Residential Loans Held For Investment At Amortized Cost
Mortgage Loans on Real Estate [Line Items]
Residential loans		$ 1,474,386

Residential Loans - Additional

Residential Loans - Additional Information (Detail) $ in Thousands		12 Months Ended
		Dec. 31, 2015USD ($)loan	Dec. 31, 2014USD ($)loan	Dec. 31, 2013USD ($)
Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 3,928,803	$ 3,398,573
Principal balance of loans sold during period		9,040,000	7,900,000
Transfers from loans held-for-sale to loans held-for-investment		1,555,814	633,707	$ 0
Transfers from loans held-for-investment to loans held-for-sale		154,012	0	$ 0
Sequoia
Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 1,021,870	$ 1,474,386
Fixed Rate Residential Mortgage
Mortgage Loans on Real Estate [Line Items]
Weighted average rate on loans		4.07%
Residential Loans | FHLB Chicago
Mortgage Loans on Real Estate [Line Items]
Residential mortgage loans securing FHLB advances		$ 1,680,000
Residential Loans at Fair Value
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan		1,763	2,273
Principal value		$ 1,090,000	$ 1,300,000
Carrying value		$ 1,110,000	$ 1,340,000
Number of loans in foreclosure | loan		1	1
Principal value		$ 10,210,000	$ 8,810,000
Valuation adjustments		(4,000)	$ (51,000)
Loan pledged as collateral		1,070,000
Loans held as assets amount in foreclosure		$ 1,000
Residential Loans at Fair Value | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Mortgage Loans on Real Estate [Line Items]
Number of loans past due | loan		2	0
Residential Loans Held for Investment
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan		4,545	5,315
Principal value		$ 1,122,415	$ 1,483,213
Carrying value		1,021,870	1,474,386
Unamortized premium, net		0	12,511
Allowance for loan losses		$ 0	$ 21,338
Residential Loans at Lower of Cost or Fair Value
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan		9	9
Principal value		$ 2,000	$ 2,000
Carrying value		$ 1,433	$ 1,488
Number of loans in foreclosure | loan		1	1
Residential Loans at Lower of Cost or Fair Value | Sequoia
Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 0	$ 0
Residential Loans at Lower of Cost or Fair Value | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Mortgage Loans on Real Estate [Line Items]
Number of loans past due | loan		2	0
Residential Loans Held For Investment at Fair Value
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan		2,398	804
Principal value		$ 1,758,990	$ 566,372
Carrying value		$ 1,790,000	$ 580,000
Number of loans in foreclosure | loan		0	1
Valuation adjustments		$ (6,000)	$ (1,000)
Transfers from loans held-for-sale to loans held-for-investment		1,500,000	583,000
Transfers from loans held-for-investment to loans held-for-sale		$ 143,000	0
FICO credit score		772
Loan to value ratio		65.00%
Percentage of loans with fixed interest rate		97.00%
Residential Loans Held For Investment at Fair Value | Sequoia
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan		4,545
FICO credit score		729
Loan to value ratio		66.00%
Loans held as assets, 90 days or more past due		$ 59,000	70,000
Loans held as assets amount in foreclosure		32,000	39,000
Valuation adjustments		$ 7,000	$ 0
Residential Loans Held For Investment at Fair Value | Hybrid Residential Mortgages
Mortgage Loans on Real Estate [Line Items]
Weighted average rate on loans		3.55%
Residential Loans Held For Investment at Fair Value | Originated In 2014 and 2015
Mortgage Loans on Real Estate [Line Items]
Percentage of loan portfolio		88.00%
Residential Loans Held For Investment at Fair Value | Originated During 2013
Mortgage Loans on Real Estate [Line Items]
Percentage of loan portfolio		6.00%
Residential Loans Held For Investment at Fair Value | Originated In 2012 And Prior Years
Mortgage Loans on Real Estate [Line Items]
Percentage of loan portfolio		6.00%
Residential Loans Held For Investment at Fair Value | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Mortgage Loans on Real Estate [Line Items]
Number of loans past due | loan		0	0
Residential Loans Held For Sale
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan		1,772	2,282
Principal value		$ 1,091,518	$ 1,305,493
Carrying value	[1]	1,115,738	$ 1,342,519
Mortgage Servicing Rights
Mortgage Loans on Real Estate [Line Items]
Mortgage servicing rights		$ 2,230,000
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Residential Loans - Geographic

Residential Loans - Geographic Concentration of Residential Loans Recorded on Consolidated Balance Sheet (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Residential Loans Held For Sale
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
Residential Loans Held For Sale | California
Concentration Risk [Line Items]
Concentration risk percentage	41.00%	39.00%
Residential Loans Held For Sale | Texas
Concentration Risk [Line Items]
Concentration risk percentage	9.00%	9.00%
Residential Loans Held For Sale | Washington
Concentration Risk [Line Items]
Concentration risk percentage	6.00%	5.00%
Residential Loans Held For Sale | Colorado
Concentration Risk [Line Items]
Concentration risk percentage	5.00%	0.00%
Residential Loans Held For Sale | Florida
Concentration Risk [Line Items]
Concentration risk percentage	4.00%	4.00%
Residential Loans Held For Sale | Virginia
Concentration Risk [Line Items]
Concentration risk percentage	3.00%	5.00%
Residential Loans Held For Sale | Georgia
Concentration Risk [Line Items]
Concentration risk percentage	3.00%	2.00%
Residential Loans Held For Sale | Massachusetts
Concentration Risk [Line Items]
Concentration risk percentage	2.00%	6.00%
Residential Loans Held For Sale | New York
Concentration Risk [Line Items]
Concentration risk percentage	1.00%	2.00%
Residential Loans Held For Sale | Other states
Concentration Risk [Line Items]
Concentration risk percentage	26.00%	28.00%
Residential Loans Held for Investment
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
Residential Loans Held for Investment | California
Concentration Risk [Line Items]
Concentration risk percentage	18.00%	20.00%
Residential Loans Held for Investment | Texas
Concentration Risk [Line Items]
Concentration risk percentage	6.00%	5.00%
Residential Loans Held for Investment | Washington
Concentration Risk [Line Items]
Concentration risk percentage	2.00%	2.00%
Residential Loans Held for Investment | Colorado
Concentration Risk [Line Items]
Concentration risk percentage	3.00%	0.00%
Residential Loans Held for Investment | Florida
Concentration Risk [Line Items]
Concentration risk percentage	14.00%	13.00%
Residential Loans Held for Investment | Virginia
Concentration Risk [Line Items]
Concentration risk percentage	3.00%	3.00%
Residential Loans Held for Investment | Georgia
Concentration Risk [Line Items]
Concentration risk percentage	5.00%	5.00%
Residential Loans Held for Investment | Massachusetts
Concentration Risk [Line Items]
Concentration risk percentage	2.00%	2.00%
Residential Loans Held for Investment | New York
Concentration Risk [Line Items]
Concentration risk percentage	8.00%	8.00%
Residential Loans Held for Investment | Other states
Concentration Risk [Line Items]
Concentration risk percentage	39.00%	42.00%
Residential Loans Held For Investment at Fair Value
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
Residential Loans Held For Investment at Fair Value | California
Concentration Risk [Line Items]
Concentration risk percentage	39.00%	24.00%
Residential Loans Held For Investment at Fair Value | Texas
Concentration Risk [Line Items]
Concentration risk percentage	11.00%	14.00%
Residential Loans Held For Investment at Fair Value | Washington
Concentration Risk [Line Items]
Concentration risk percentage	3.00%	4.00%
Residential Loans Held For Investment at Fair Value | Colorado
Concentration Risk [Line Items]
Concentration risk percentage	5.00%	8.00%
Residential Loans Held For Investment at Fair Value | Florida
Concentration Risk [Line Items]
Concentration risk percentage	4.00%	6.00%
Residential Loans Held For Investment at Fair Value | Virginia
Concentration Risk [Line Items]
Concentration risk percentage	4.00%	7.00%
Residential Loans Held For Investment at Fair Value | Georgia
Concentration Risk [Line Items]
Concentration risk percentage	1.00%	0.00%
Residential Loans Held For Investment at Fair Value | Massachusetts
Concentration Risk [Line Items]
Concentration risk percentage	4.00%	5.00%
Residential Loans Held For Investment at Fair Value | New York
Concentration Risk [Line Items]
Concentration risk percentage	5.00%	3.00%
Residential Loans Held For Investment at Fair Value | Other states
Concentration Risk [Line Items]
Concentration risk percentage	24.00%	29.00%

Residential Loans - Geographi76

Residential Loans - Geographic Concentration of Residential Loans Recorded on Consolidated Balance Sheet (Footnotes) (Detail)	Dec. 31, 2015	Dec. 31, 2014
Other states | Residential Loans Held For Investment at Fair Value
Concentration Risk [Line Items]
Concentration risk percentage per other state	5.00%	5.00%

Residential Loans - Loan Produc

Residential Loans - Loan Product Type and Accompanying Loan Characteristics of Residential Loans (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)loan	Dec. 31, 2014USD ($)loan
Residential Loans Held for Investment
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	4,545	5,315
Principal value	$ 1,122,415	$ 1,483,213
30-89 Days DQ	30,328	41,248
90+ Days DQ	$ 58,823	$ 69,562
Residential Loans Held for Investment | ARM Loans
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	4,504	5,063
Principal value	$ 1,101,588	$ 1,311,514
30-89 Days DQ	29,786	41,248
90+ Days DQ	58,823	68,517
Residential Loans Held for Investment | ARM Loans | Range 1
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	0	0
Loan Balance, maximum	$ 250	$ 250
Interest Rate, minimum	0.38%	0.25%
Interest Rate, maximum	5.16%	5.50%
Number of loans | loan	3,133	3,400
Principal value	$ 355,415	$ 400,779
30-89 Days DQ	10,661	14,604
90+ Days DQ	13,078	16,332
Residential Loans Held for Investment | ARM Loans | Range 2
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	251	251
Loan Balance, maximum	$ 500	$ 500
Interest Rate, minimum	0.00%	0.00%
Interest Rate, maximum	5.63%	5.63%
Number of loans | loan	858	1,041
Principal value	$ 296,425	$ 360,848
30-89 Days DQ	9,620	14,536
90+ Days DQ	15,345	13,955
Residential Loans Held for Investment | ARM Loans | Range 3
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	501	501
Loan Balance, maximum	$ 750	$ 750
Interest Rate, minimum	0.63%	0.50%
Interest Rate, maximum	4.66%	4.66%
Number of loans | loan	269	328
Principal value	$ 161,273	$ 198,661
30-89 Days DQ	4,578	7,218
90+ Days DQ	7,209	12,862
Residential Loans Held for Investment | ARM Loans | Range 4
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	751	751
Loan Balance, maximum	$ 1,000	$ 1,000
Interest Rate, minimum	0.38%	0.25%
Interest Rate, maximum	2.38%	2.38%
Number of loans | loan	135	162
Principal value	$ 118,983	$ 143,687
30-89 Days DQ	3,586	2,396
90+ Days DQ	$ 8,473	$ 9,262
Residential Loans Held for Investment | ARM Loans | Range 5
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum
Loan Balance, maximum	$ 1,000	$ 1,000
Interest Rate, minimum	0.00%	0.00%
Interest Rate, maximum	2.63%	2.63%
Number of loans | loan	109	132
Principal value	$ 169,492	$ 207,539
30-89 Days DQ	1,341	2,494
90+ Days DQ	$ 14,718	$ 16,106
Residential Loans Held for Investment | Hybrid ARM Loans
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	41	70
Principal value	$ 20,827	$ 46,310
90+ Days DQ	0	319
Residential Loans Held for Investment | Hybrid ARM Loans | Range 1
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	0	0
Loan Balance, maximum	$ 250	$ 250
Interest Rate, minimum	2.75%	2.63%
Interest Rate, maximum	2.88%	2.63%
Number of loans | loan	3	3
Principal value	$ 317	$ 364
Residential Loans Held for Investment | Hybrid ARM Loans | Range 2
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	251	251
Loan Balance, maximum	$ 500	$ 500
Interest Rate, minimum	2.63%	2.50%
Interest Rate, maximum	2.88%	5.15%
Number of loans | loan	20	26
Principal value	$ 7,523	$ 10,056
90+ Days DQ	0	319
Residential Loans Held for Investment | Hybrid ARM Loans | Range 3
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	501	501
Loan Balance, maximum	$ 750	$ 750
Interest Rate, minimum	2.63%	2.50%
Interest Rate, maximum	2.88%	4.65%
Number of loans | loan	15	23
Principal value	$ 9,874	$ 14,711
Residential Loans Held for Investment | Hybrid ARM Loans | Range 4
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	751	751
Loan Balance, maximum	$ 1,000	$ 1,000
Interest Rate, minimum	2.75%	2.50%
Interest Rate, maximum	2.75%	4.80%
Number of loans | loan	2	11
Principal value	$ 1,547	$ 9,393
Residential Loans Held for Investment | Hybrid ARM Loans | Range 5
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum
Loan Balance, maximum	$ 1,000	$ 1,000
Interest Rate, minimum	2.75%	2.50%
Interest Rate, maximum	2.75%	4.95%
Number of loans | loan	1	7
Principal value	$ 1,566	$ 11,786
Residential Loans Held for Investment | Fixed Loans
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan		182
Principal value		$ 125,389
90+ Days DQ		726
Residential Loans Held for Investment | Fixed Loans | Range 1
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum		0
Loan Balance, maximum		$ 250
Interest Rate, minimum		3.70%
Interest Rate, maximum		4.90%
Number of loans | loan		7
Principal value		$ 1,040
Residential Loans Held for Investment | Fixed Loans | Range 2
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum		251
Loan Balance, maximum		$ 500
Interest Rate, minimum		3.45%
Interest Rate, maximum		5.13%
Number of loans | loan		42
Principal value		$ 17,574
Residential Loans Held for Investment | Fixed Loans | Range 3
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum		501
Loan Balance, maximum		$ 750
Interest Rate, minimum		3.65%
Interest Rate, maximum		5.25%
Number of loans | loan		71
Principal value		$ 42,609
Residential Loans Held for Investment | Fixed Loans | Range 4
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum		751
Loan Balance, maximum		$ 1,000
Interest Rate, minimum		4.20%
Interest Rate, maximum		5.25%
Number of loans | loan		38
Principal value		$ 32,966
90+ Days DQ		$ 726
Residential Loans Held for Investment | Fixed Loans | Range 5
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum
Loan Balance, maximum		$ 1,000
Interest Rate, minimum		4.30%
Interest Rate, maximum		5.38%
Number of loans | loan		24
Principal value		$ 31,200
Residential Loans Held For Sale
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	1,772	2,282
Principal value	$ 1,091,518	$ 1,305,493
30-89 Days DQ	4,346	1,348
90+ Days DQ	1,852	471
Residential Loans Held For Sale | ARM Loans
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	64	66
Loan Balance, maximum	$ 1,298	$ 359
Interest Rate, minimum	1.50%	1.88%
Interest Rate, maximum	4.00%	2.25%
Number of loans | loan	14	8
Principal value	$ 5,258	$ 1,286
30-89 Days DQ	0	170
90+ Days DQ	415	471
Residential Loans Held For Sale | Hybrid ARM Loans
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	164	252
Loan Balance, maximum	$ 1,989	$ 1,985
Interest Rate, minimum	2.50%	2.63%
Interest Rate, maximum	4.25%	4.00%
Number of loans | loan	356	109
Principal value	$ 276,457	$ 84,271
30-89 Days DQ	2,249
Residential Loans Held For Sale | Fixed Loans
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	30	75
Loan Balance, maximum	$ 2,332	$ 2,496
Interest Rate, minimum	2.75%	2.88%
Interest Rate, maximum	5.25%	5.00%
Number of loans | loan	1,402	2,165
Principal value	$ 809,803	$ 1,219,936
30-89 Days DQ	2,097	$ 1,178
90+ Days DQ	$ 1,437
Residential Loans Held For Investment at Fair Value
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	2,398	804
Principal value	$ 1,758,990	$ 566,372
30-89 Days DQ	$ 5,357	2,137
Residential Loans Held For Investment at Fair Value | ARM Loans
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	5
Principal value	$ 3,501
Residential Loans Held For Investment at Fair Value | ARM Loans | Range 1
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	251
Loan Balance, maximum	$ 500
Interest Rate, minimum	3.63%
Interest Rate, maximum	3.75%
Number of loans | loan	2
Principal value	$ 563
Residential Loans Held For Investment at Fair Value | ARM Loans | Range 2
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	501
Loan Balance, maximum	$ 750
Interest Rate, minimum	3.50%
Interest Rate, maximum	3.50%
Number of loans | loan	2
Principal value	$ 1,671
30-89 Days DQ	0
Residential Loans Held For Investment at Fair Value | ARM Loans | Range 3
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	751
Loan Balance, maximum	$ 1,000
Interest Rate, minimum	3.63%
Interest Rate, maximum	3.63%
Number of loans | loan	1
Principal value	$ 1,267
Residential Loans Held For Investment at Fair Value | Hybrid ARM Loans
Mortgage Loans on Real Estate [Line Items]
30-89 Days DQ	542
Residential Loans Held For Investment at Fair Value | Hybrid ARM Loans | Range 1
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	251	251
Loan Balance, maximum	$ 500	$ 500
Interest Rate, minimum	2.88%	2.38%
Interest Rate, maximum	3.88%	3.75%
Number of loans | loan	7	29
Principal value	$ 2,963	$ 12,487
30-89 Days DQ	0
Residential Loans Held For Investment at Fair Value | Hybrid ARM Loans | Range 2
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	501	501
Loan Balance, maximum	$ 750	$ 750
Interest Rate, minimum	2.63%	2.38%
Interest Rate, maximum	4.90%	4.25%
Number of loans | loan	28	80
Principal value	$ 17,514	$ 49,085
30-89 Days DQ	0	619
Residential Loans Held For Investment at Fair Value | Hybrid ARM Loans | Range 3
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	751	751
Loan Balance, maximum	$ 1,000	$ 1,000
Interest Rate, minimum	2.75%	2.38%
Interest Rate, maximum	5.05%	3.75%
Number of loans | loan	15	51
Principal value	$ 12,994	$ 43,835
30-89 Days DQ	542
Residential Loans Held For Investment at Fair Value | Hybrid ARM Loans | Range 4
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum
Loan Balance, maximum	$ 1,000	$ 1,000
Interest Rate, minimum	2.88%	2.38%
Interest Rate, maximum	5.20%	3.25%
Number of loans | loan	6	14
Principal value	$ 8,797	$ 17,720
30-89 Days DQ	$ 0
Residential Loans Held For Investment at Fair Value | Hybrid ARM Loans | Range 5
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	56	174
Principal value	$ 42,268	$ 123,127
30-89 Days DQ	$ 0	$ 619
Residential Loans Held For Investment at Fair Value | Fixed Loans
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	2,337	630
Principal value	$ 1,713,221	$ 443,245
30-89 Days DQ	5,357	1,518
Residential Loans Held For Investment at Fair Value | Fixed Loans | Range 1
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	0	0
Loan Balance, maximum	$ 250	$ 250
Interest Rate, minimum	3.64%	4.13%
Interest Rate, maximum	5.38%	4.13%
Number of loans | loan	29	1
Principal value	$ 5,295	$ 75
30-89 Days DQ	242
Residential Loans Held For Investment at Fair Value | Fixed Loans | Range 2
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	251	251
Loan Balance, maximum	$ 500	$ 500
Interest Rate, minimum	3.13%	3.13%
Interest Rate, maximum	5.13%	4.75%
Number of loans | loan	484	158
Principal value	$ 212,732	$ 72,931
30-89 Days DQ	913	894
Residential Loans Held For Investment at Fair Value | Fixed Loans | Range 3
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	501	501
Loan Balance, maximum	$ 750	$ 750
Interest Rate, minimum	2.94%	3.13%
Interest Rate, maximum	5.25%	5.00%
Number of loans | loan	959	272
Principal value	$ 595,863	$ 165,574
30-89 Days DQ	3,213	624
Residential Loans Held For Investment at Fair Value | Fixed Loans | Range 4
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	751	751
Loan Balance, maximum	$ 1,000	$ 1,000
Interest Rate, minimum	2.90%	3.13%
Interest Rate, maximum	5.00%	4.88%
Number of loans | loan	552	136
Principal value	$ 480,557	$ 116,892
30-89 Days DQ	$ 989
Residential Loans Held For Investment at Fair Value | Fixed Loans | Range 5
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum
Loan Balance, maximum	$ 1,000	$ 1,000
Interest Rate, minimum	3.14%	3.25%
Interest Rate, maximum	5.00%	5.00%
Number of loans | loan	313	63
Principal value	$ 418,774	$ 87,773
30-89 Days DQ	$ 0

Residential Loans - Carrying Va

Residential Loans - Carrying Value for Residential Loans Held-for-Investment at Amortized Cost (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 3,928,803	$ 3,398,573
Residential Loans Held for Investment
Mortgage Loans on Real Estate [Line Items]
Principal value	1,122,415	1,483,213
Unamortized premium, net	0	12,511
Allowance for loan losses	0	(21,338)
Valuation adjustment	(100,545)	0
Carrying Value	$ 1,021,870	$ 1,474,386

Residential Loans - Summary o79

Residential Loans - Summary of Activity in Allowance for Losses on Residential Loans (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Allowance for Loan and Lease Losses [Roll Forward]
Provision for loan losses	$ 355	$ (961)	$ (4,737)
Residential Loans
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	21,338	25,427	28,504
Charge-offs, net	0	(4,966)	(4,525)
Provision for loan losses	0	877	1,448
Deconsolidation adjustment	(21,338)	0	0
Balance at End of Period	$ 0	$ 21,338	$ 25,427

Commercial Loans - Summary of C

Commercial Loans - Summary of Classifications and Carrying Value of Commercial Loans (Detail) - USD ($) $ in Thousands		Dec. 31, 2015	Dec. 31, 2014
Commercial Loans [Line Items]
Commercial loans		$ 402,647	$ 566,927
Commercial Loans Held For Sale
Commercial Loans [Line Items]
Commercial loans	[1]	39,141	166,234
Commercial Loans Held For Investment
Commercial Loans [Line Items]
Commercial loans	[1]	363,506	400,693
Loans at fair value		67,657	71,262
Commercial Loans Held-for-Investment, at Amortized Cost
Commercial Loans [Line Items]
Commercial loans		$ 295,849	$ 329,431
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Commercial Loans - Additional I

Commercial Loans - Additional Information (Detail) $ in Thousands		12 Months Ended
		Dec. 31, 2015USD ($)loan	Dec. 31, 2014USD ($)loan	Dec. 31, 2013USD ($)
Commercial Loans [Line Items]
Carrying value		$ 402,647	$ 566,927
Senior commercial loans, held for sale		11,045,813	9,917,943	$ 7,766,203
Sale of loan for third party, held for sale		9,761,010	8,126,249	$ 7,405,088
Commercial Loans Held-for-Investment, at Amortized Cost
Commercial Loans [Line Items]
Commercial loans financed through Commercial Securitization entity		$ 166,000	$ 195,000
Number of loans | loan		59	60
Carrying value		$ 295,849	$ 329,431
Loan pledged as collateral		135,000	80,000
Senior commercial loans, held for Investment		22,000	59,000
Repayments received		57,000	71,000
Yield maintenance fees received		4,000	2,000
Recorded investment		$ 302,951	$ 336,888
Commercial Loans Held-for-Investment, at Amortized Cost | Originated During 2015
Commercial Loans [Line Items]
Percentage of loan portfolio		7.00%
Commercial Loans Held-for-Investment, at Amortized Cost | Originated During 2014
Commercial Loans [Line Items]
Percentage of loan portfolio		19.00%
Commercial Loans Held-for-Investment, at Amortized Cost | Originated During 2013
Commercial Loans [Line Items]
Percentage of loan portfolio		16.00%
Commercial Loans Held-for-Investment, at Amortized Cost | Originated During 2012
Commercial Loans [Line Items]
Percentage of loan portfolio		31.00%
Commercial Loans Held-for-Investment, at Amortized Cost | Originated During 2011
Commercial Loans [Line Items]
Percentage of loan portfolio		23.00%
Commercial Loans Held-for-Investment, at Amortized Cost | Originated During 2010
Commercial Loans [Line Items]
Percentage of loan portfolio		4.00%
Commercial Loans Held For Sale
Commercial Loans [Line Items]
Number of loans | loan		4	13
Principal value		$ 39,000	$ 163,000
Carrying value	[1]	39,141	166,234
Senior commercial loans, held for sale		618,000	904,000
Sale of loan for third party, held for sale		741,000	791,000
Valuation adjustments		10,000	$ 21,000
Loan pledged as collateral		$ 18,000
Commercial Loans Held For Investment
Commercial Loans [Line Items]
Number of loans | loan		3	3
Principal value		$ 67,000	$ 68,000
Carrying value	[1]	363,506	400,693
Loans at fair value		67,657	71,262
Commercial Loans Held-for-Investment, at Fair Value, B-Notes
Commercial Loans [Line Items]
Carrying value		$ 5,000	$ 5,000
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Commercial Loans - For-Investme

Commercial Loans - For-Investment at Amortized Cost (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Commercial Loans [Line Items]
Carrying Value	$ 402,647	$ 566,927
Commercial Loans Held-for-Investment, at Amortized Cost
Commercial Loans [Line Items]
Principal balance	307,047	341,750
Unamortized discount, net	(4,096)	(4,862)
Recorded investment	302,951	336,888
Allowance for loan losses	(7,102)	(7,457)
Carrying Value	$ 295,849	$ 329,431

Commercial Loans - Held for Inv

Commercial Loans - Held for Investment by Risk Category (Detail) - Commercial Loans Held For Investment - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Commercial Loans [Line Items]
Commercial loans held for investment	$ 307,047	$ 341,750
Pass
Commercial Loans [Line Items]
Commercial loans held for investment	272,768	316,122
Watch List
Commercial Loans [Line Items]
Commercial loans held for investment	$ 34,279	$ 25,628

Commercial Loans - Summary of A

Commercial Loans - Summary of Activity in Allowance for Commercial Loan Losses (Detail) - Commercial Loans - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	$ 7,457	$ 7,373	$ 4,084
Charge-offs, net	0	0	0
(Reversal of) provision for loan losses	355	(84)	(3,289)
Balance at End of Period	$ 7,102	$ 7,457	$ 7,373

Commercial Loans - Collectively

Commercial Loans - Collectively Evaluated for Impairment (Detail) - Commercial Loans - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
Principal balance	$ 307,047	$ 341,750
Recorded investment	302,951	336,888
Related allowance	$ 7,102	$ 7,457

Commercial Loans - Geographic C

Commercial Loans - Geographic Concentrate of Commercial Loans Recorded on Consolidated Balance Sheet (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Commercial Loans Held For Sale
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
Commercial Loans Held For Sale | Nevada
Concentration Risk [Line Items]
Concentration risk percentage	45.00%	0.00%
Commercial Loans Held For Sale | Virginia
Concentration Risk [Line Items]
Concentration risk percentage	26.00%	0.00%
Commercial Loans Held For Sale | Florida
Concentration Risk [Line Items]
Concentration risk percentage	18.00%	0.00%
Commercial Loans Held For Sale | Illinois
Concentration Risk [Line Items]
Concentration risk percentage	11.00%	0.00%
Commercial Loans Held For Sale | California
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	6.00%
Commercial Loans Held For Sale | New York
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	0.00%
Commercial Loans Held For Sale | Michigan
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	18.00%
Commercial Loans Held For Sale | Washington, District of Columbia
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	25.00%
Commercial Loans Held For Sale | Colorado
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	17.00%
Commercial Loans Held For Sale | Connecticut
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	10.00%
Commercial Loans Held For Sale | Texas
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	9.00%
Commercial Loans Held For Sale | Maryland
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	7.00%
Commercial Loans Held For Sale | North Carolina
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	0.00%
Commercial Loans Held For Sale | Other states
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	8.00%
Concentration risk percentage per other state	5.00%	5.00%
Commercial Loans Held For Investment
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
Commercial Loans Held For Investment | Nevada
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	0.00%
Commercial Loans Held For Investment | Virginia
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	0.00%
Commercial Loans Held For Investment | Florida
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	17.00%
Commercial Loans Held For Investment | Illinois
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	0.00%
Commercial Loans Held For Investment | California
Concentration Risk [Line Items]
Concentration risk percentage	22.00%	19.00%
Commercial Loans Held For Investment | New York
Concentration Risk [Line Items]
Concentration risk percentage	19.00%	18.00%
Commercial Loans Held For Investment | Michigan
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	8.00%
Commercial Loans Held For Investment | Washington, District of Columbia
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	0.00%
Commercial Loans Held For Investment | Colorado
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	0.00%
Commercial Loans Held For Investment | Connecticut
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	0.00%
Commercial Loans Held For Investment | Texas
Concentration Risk [Line Items]
Concentration risk percentage	5.00%	0.00%
Commercial Loans Held For Investment | Maryland
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	0.00%
Commercial Loans Held For Investment | North Carolina
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	6.00%
Commercial Loans Held For Investment | Other states
Concentration Risk [Line Items]
Concentration risk percentage	34.00%	32.00%
Concentration risk percentage per other state	5.00%	5.00%

Commercial Loans - Loan Product

Commercial Loans - Loan Product Type and Accompanying Loan Characteristics of Commercial Loans (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)loan	Dec. 31, 2014USD ($)loan
Commercial Loans Held For Investment
Commercial Loans [Line Items]
Number of loans | loan	3	3
Principal value	$ 67,000	$ 68,000
Commercial Loans Held For Investment | Fixed Loans
Commercial Loans [Line Items]
Number of loans | loan	56	56
Principal value	$ 285,262	$ 300,748
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Commercial Loans Held For Investment | Fixed Loans | Range 1
Commercial Loans [Line Items]
Interest Rate, minimum	9.50%	9.50%
Interest Rate, maximum	12.50%	12.50%
Number of loans | loan	40	37
Principal value	$ 109,973	$ 102,994
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Commercial Loans Held For Investment | Fixed Loans | Range 2
Commercial Loans [Line Items]
Interest Rate, minimum	4.43%	4.43%
Interest Rate, maximum	11.00%	11.00%
Number of loans | loan	11	14
Principal value	$ 87,510	$ 109,551
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Commercial Loans Held For Investment | Fixed Loans | Range 3
Commercial Loans [Line Items]
Interest Rate, minimum	9.50%	9.50%
Interest Rate, maximum	9.50%	9.50%
Number of loans | loan	3	2
Principal value	$ 42,374	$ 24,874
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Commercial Loans Held For Investment | Fixed Loans | Range 4
Commercial Loans [Line Items]
Interest Rate, minimum	10.50%	10.50%
Interest Rate, maximum	11.00%	11.00%
Number of loans | loan	1	2
Principal value	$ 20,000	$ 37,700
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Commercial Loans Held For Investment | Fixed Loans | Range 5
Commercial Loans [Line Items]
Interest Rate	10.00%	10.00%
Number of loans | loan	1	1
Principal value	$ 25,405	$ 25,629
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Commercial Loans Held For Investment | ARM Loans
Commercial Loans [Line Items]
Number of loans | loan	59	60
Principal value	$ 307,047	$ 341,750
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Commercial Loans Held For Investment | ARM Loans | Range 1
Commercial Loans [Line Items]
Interest Rate, minimum	11.20%	10.80%
Interest Rate, maximum	11.20%	12.00%
Number of loans | loan	1	2
Principal value	$ 1,330	$ 15,478
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Commercial Loans Held For Investment | ARM Loans | Range 2
Commercial Loans [Line Items]
Interest Rate, minimum	12.00%	9.16%
Interest Rate, maximum	12.00%	11.20%
Number of loans | loan	1	2
Principal value	$ 5,455	$ 25,524
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Commercial Loans Held For Investment | ARM Loans | Range 3
Commercial Loans [Line Items]
Interest Rate, minimum	9.16%
Interest Rate, maximum	9.16%
Number of loans | loan	1
Principal value	$ 15,000
30-89 Days DQ	0
90+ Days DQ	$ 0
Commercial Loans Held For Investment | ARM Loans | Range 4
Commercial Loans [Line Items]
Number of loans | loan	3	4
Principal value	$ 21,785	$ 41,002
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Commercial Loans Held-for-Investment, at Fair Value | Fixed Loans
Commercial Loans [Line Items]
Number of loans | loan	6	6
Principal value	$ 66,962	$ 67,556
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Commercial Loans Held-for-Investment, at Fair Value | Fixed Loans | Range 1
Commercial Loans [Line Items]
Interest Rate	10.00%	10.00%
Number of loans | loan	3	3
Principal value	$ 4,505	$ 4,555
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Commercial Loans Held-for-Investment, at Fair Value | Fixed Loans | Range 2
Commercial Loans [Line Items]
Interest Rate	4.95%	4.95%
Number of loans | loan	1	1
Principal value	$ 11,169	$ 11,399
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Commercial Loans Held-for-Investment, at Fair Value | Fixed Loans | Range 3
Commercial Loans [Line Items]
Interest Rate	4.83%	4.83%
Number of loans | loan	1	1
Principal value	$ 21,788	$ 22,102
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Commercial Loans Held-for-Investment, at Fair Value | Fixed Loans | Range 4
Commercial Loans [Line Items]
Interest Rate	4.79%	4.79%
Number of loans | loan	1	1
Principal value	$ 29,500	$ 29,500
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Commercial Loans Held For Sale
Commercial Loans [Line Items]
Number of loans | loan	4	13
Principal value	$ 39,000	$ 163,000
Commercial Loans Held For Sale | Fixed Loans
Commercial Loans [Line Items]
Interest Rate, minimum		4.19%
Interest Rate, maximum		4.79%
Number of loans | loan	4	13
Principal value	$ 38,750	$ 162,790
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Commercial Loans Held For Sale | Fixed Loans | Range 1
Commercial Loans [Line Items]
Interest Rate, minimum	4.81%
Interest Rate, maximum	4.81%
Number of loans | loan	1
Principal value	$ 4,150
30-89 Days DQ	0
90+ Days DQ	$ 0
Commercial Loans Held For Sale | Fixed Loans | Range 2
Commercial Loans [Line Items]
Interest Rate, minimum	5.05%
Interest Rate, maximum	5.05%
Number of loans | loan	2
Principal value	$ 16,900
30-89 Days DQ	0
90+ Days DQ	$ 0
Commercial Loans Held For Sale | Fixed Loans | Range 3
Commercial Loans [Line Items]
Interest Rate, minimum	4.90%
Interest Rate, maximum	4.90%
Number of loans | loan	1
Principal value	$ 17,700
30-89 Days DQ	0
90+ Days DQ	$ 0

- Fair Values of Real Estate Se

- Fair Values of Real Estate Securities by Collateral Type and Entity (Detail) - USD ($) $ in Thousands		Dec. 31, 2015	Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]
Trading		$ 404,011	$ 111,606
Available-for-sale		829,245	1,267,624
Total Real Estate Securities	[1]	$ 1,233,256	$ 1,379,230
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Real Estate Securities - Additi

Real Estate Securities - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2015USD ($)Investment	Dec. 31, 2014USD ($)Investment
Investment Holdings [Line Items]
Trading securities	$ 404,011,000	$ 111,606,000
Trading securities acquired	383,000,000	80,000,000
Trading securities sold	$ 18,000,000	$ 62,000,000
Number of AFS securities | Investment	224	290
Number of securities in unrealized loss position | Investment	32	31
Number of securities in a continuous unrealized loss position for twelve consecutive months or longer | Investment	15	10
Change in trading securities	$ (17,000,000)	$ (24,000,000)
Trading securities pledged as collateral	347,000,000
AFS securities acquired	33,000,000	237,000,000
AFS securities sold	366,000,000	440,000,000
AFS net realized gains	34,000,000	12,000,000
OTTI losses related to AFS securities	1,000,000
Residential
Investment Holdings [Line Items]
Marketable securities, due from five to ten years	0
Marketable securities, less than five years	2,000,000
Securities pledged as collateral	827,000,000	762,000,000
Interest Only Securities
Investment Holdings [Line Items]
Trading securities	37,000,000
Senior Securities
Investment Holdings [Line Items]
Trading securities	254,351,000	101,753,000
Senior Securities | Prime
Investment Holdings [Line Items]
Trading securities	248,570,000	93,802,000
Securities financed through nonrecourse resecuritization		105,000,000
Senior Securities | Non-prime
Investment Holdings [Line Items]
Trading securities	5,781,000	7,951,000
Securities financed through nonrecourse resecuritization		117,000,000
Residential Subordinate Securities
Investment Holdings [Line Items]
Trading securities	149,000,000
Residential Subordinate Securities | Trading Securities
Investment Holdings [Line Items]
Unpaid principal balance	168,000,000
Residential Senior and Subordinate Securities
Investment Holdings [Line Items]
Trading securities	218,000,000
Residential Senior and Subordinate Securities | Trading Securities
Investment Holdings [Line Items]
Unpaid principal balance	217,000,000
Available-for-sale Securities | Residential
Investment Holdings [Line Items]
Securities pledged as collateral	480,000,000
Residential
Investment Holdings [Line Items]
Gross unrealized losses	5,007,000	2,796,000
Residential | Senior Securities | Prime
Investment Holdings [Line Items]
Gross unrealized losses	3,491,000	1,298,000
Residential | Senior Securities | Non-prime
Investment Holdings [Line Items]
Gross unrealized losses	$ 86,000	$ 61,000

Real Estate Securities - Tradin

Real Estate Securities - Trading Securities by Collateral Type (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Investment Holdings [Line Items]
Trading securities	$ 404,011	$ 111,606
Senior Securities
Investment Holdings [Line Items]
Trading securities	254,351	101,753
Senior Securities | Prime
Investment Holdings [Line Items]
Trading securities	248,570	93,802
Senior Securities | Non-prime
Investment Holdings [Line Items]
Trading securities	5,781	7,951
Subordinate Securities | Prime
Investment Holdings [Line Items]
Trading securities	149,660	9,853
Subordinate Securities | Real Estate Securities, Prime Mezzanine [Member]
Investment Holdings [Line Items]
Trading securities	136,140	0
Subordinate Securities | Real Estate Securities, Prime Subordinate [Member]
Investment Holdings [Line Items]
Trading securities	$ 13,520	$ 9,853

Real Estate Securities - Availa

Real Estate Securities - Available for Sale Securities by Collateral Type (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Investment Holdings [Line Items]
Available-for-sale securities	$ 829,245	$ 1,267,624
Senior Securities
Investment Holdings [Line Items]
Available-for-sale securities	279,251	487,557
Senior Securities | Prime
Investment Holdings [Line Items]
Available-for-sale securities	210,993	307,813
Senior Securities | Non-prime
Investment Holdings [Line Items]
Available-for-sale securities	68,258	179,744
Re-REMIC
Investment Holdings [Line Items]
Available-for-sale securities	165,064	168,347
Subordinate Securities
Investment Holdings [Line Items]
Available-for-sale securities	384,930	611,720
Subordinate Securities | Prime
Investment Holdings [Line Items]
Available-for-sale securities	220,141	448,838
Subordinate Securities | Non-prime
Investment Holdings [Line Items]
Available-for-sale securities	1,000	1,000
Subordinate Securities | Subordinate
Investment Holdings [Line Items]
Available-for-sale securities	$ 164,789	$ 162,882

Real Estate Securities - Compon

Real Estate Securities - Components of Carrying Value (Which Equals Fair Value) of Residential Available for Sale Securities (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	$ 829,245	$ 1,267,624
Senior Securities
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	279,251	487,557
Senior Securities | Prime
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	210,993	307,813
Senior Securities | Non-prime
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	68,258	179,744
Re-REMIC
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	165,064	168,347
Subordinate Securities
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	384,930	611,720
Subordinate Securities | Prime
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	220,141	448,838
Subordinate Securities | Non-prime
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	1,000	1,000
Residential
Schedule of Available-for-sale Securities [Line Items]
Principal balance	973,227	1,445,079
Credit reserve	(48,869)	(70,067)
Unamortized discount, net	(237,107)	(296,342)
Amortized cost	687,251	1,078,670
Amortized cost	687,251	1,078,670
Gross unrealized gains	147,001	191,750
Gross unrealized losses	(5,007)	(2,796)
Carrying Value	829,245	1,267,624
Residential | Senior Securities | Prime
Schedule of Available-for-sale Securities [Line Items]
Principal balance	217,605	311,573
Credit reserve	(1,305)	(3,660)
Unamortized discount, net	(22,079)	(34,782)
Amortized cost	194,221	273,131
Amortized cost	194,221	273,131
Gross unrealized gains	20,263	35,980
Gross unrealized losses	(3,491)	(1,298)
Carrying Value	210,993	307,813
Residential | Senior Securities | Non-prime
Schedule of Available-for-sale Securities [Line Items]
Principal balance	75,591	196,258
Credit reserve	(5,101)	(9,644)
Unamortized discount, net	(8,395)	(31,491)
Amortized cost	62,095	155,123
Amortized cost	62,095	155,123
Gross unrealized gains	6,249	24,682
Gross unrealized losses	(86)	(61)
Carrying Value	68,258	179,744
Residential | Re-REMIC
Schedule of Available-for-sale Securities [Line Items]
Principal balance	189,782	195,098
Credit reserve	(10,332)	(15,202)
Unamortized discount, net	(71,670)	(79,611)
Amortized cost	107,780	100,285
Amortized cost	107,780	100,285
Gross unrealized gains	57,284	68,062
Gross unrealized losses	0	0
Carrying Value	165,064	168,347
Residential | Subordinate Securities
Schedule of Available-for-sale Securities [Line Items]
Principal balance	490,249	742,150
Credit reserve	(32,131)	(41,561)
Unamortized discount, net	(134,963)	(150,458)
Amortized cost	323,155	550,131
Amortized cost	323,155	550,131
Gross unrealized gains	63,205	63,026
Gross unrealized losses	(1,430)	(1,437)
Carrying Value	$ 384,930	$ 611,720

Real Estate Securities - Change

Real Estate Securities - Changes of Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities (Detail) - Residential - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Credit Reserve
Beginning balance	$ 70,067	$ 116,870
Amortization of net discount	0	0
Realized credit losses	(8,535)	(11,501)
Acquisitions	2,557	3,581
Sales, calls, other	(7,296)	(2,555)
Impairments	0	565
Transfers to (release of) credit reserves, net	(7,924)	(36,893)
Ending Balance	48,869	70,067
Unamortized Discount Net
Beginning balance	296,342	298,469
Amortization of net discount	(36,850)	(42,835)
Realized credit losses	0	0
Acquisitions	15,791	15,348
Sales, calls, other	(46,346)	(11,533)
Impairments	246	0
Transfers to (release of) credit reserves, net	7,924	36,893
Ending Balance	$ 237,107	$ 296,342

Real Estate Securities - Comp94

Real Estate Securities - Components of Carrying Value of Residential Available for Sale Securities in Unrealized Loss Position (Detail) - Residential - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Consecutive Months Amortized Cost	$ 87,718	$ 126,681
Less Than 12 Consecutive Months Gross Unrealized Losses	(1,972)	(1,374)
Less Than 12 Consecutive Months Fair Value	85,746	125,307
12 Consecutive Months or Longer Amortized Cost	77,539	70,676
12 Consecutive Months or Longer Gross Unrealized Losses	(3,035)	(1,422)
12 Consecutive Months or Longer Fair Value	$ 74,504	$ 69,254

Real Estate Securities - Summar

Real Estate Securities - Summary of Significant Valuation Assumptions for Available for Sale Securities (Detail)	12 Months Ended
	Dec. 31, 2015
Prime | Minimum
Schedule of Available-for-sale Securities [Line Items]
Prepayment rates	10.00%
Projected default rate	0.00%
Prime | Maximum
Schedule of Available-for-sale Securities [Line Items]
Prepayment rates	20.00%
Projected default rate	9.00%
Non-prime | Minimum
Schedule of Available-for-sale Securities [Line Items]
Prepayment rates	8.00%
Projected default rate	5.00%
Non-prime | Maximum
Schedule of Available-for-sale Securities [Line Items]
Prepayment rates	12.00%
Projected default rate	6.00%

Real Estate Securities - Activi

Real Estate Securities - Activity of Credit Component of Other-than-Temporary Impairments (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Balance at beginning of period	$ 33,849	$ 37,149	$ 50,852
Initial credit impairments	246	261	137
Subsequent credit impairments	0	70	0
Securities sold, or expected to sell	(4,567)	(922)	(5,811)
Securities with no outstanding principal at period end	(1,251)	(2,709)	(8,029)
Balance at End of Period	$ 28,277	$ 33,849	$ 37,149

Real Estate Securities - Gross

Real Estate Securities - Gross Realized Gains and Losses on Sales and Calls of Available for Sale Securities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Gross realized gains	$ 34,922	$ 15,030	$ 24,613
Gross realized losses	(608)	(2,713)	(214)
Available-for-sale Securities, Gross Realized Gain (Loss) On Sales And Calls	36,369	13,917	24,765
Call Option
Schedule of Available-for-sale Securities [Line Items]
Gross realized gains	2,167	1,600	366
Gross realized losses	$ (112)	$ 0	$ 0

- Schedule of Fair Value of MSR

- Schedule of Fair Value of MSRs and Aggregate Principal Amounts of Associated Loans (Detail) - USD ($) $ in Thousands		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Servicing Assets at Fair Value [Line Items]
MSRs	[1]	$ 191,976	$ 139,293
Mortgage Servicing Rights
Servicing Assets at Fair Value [Line Items]
MSRs		191,976	139,293	$ 64,824	$ 5,315
Associated Principal		18,266,472	13,667,930
Mortgage Servicing Rights | Conforming Loan
Servicing Assets at Fair Value [Line Items]
MSRs		133,838	81,301
Associated Principal		12,560,533	7,705,146
Mortgage Servicing Rights | Jumbo Loan
Servicing Assets at Fair Value [Line Items]
MSRs		58,138	57,992
Associated Principal		$ 5,705,939	$ 5,962,784
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Mortgage Servicing Rights - Act

Mortgage Servicing Rights - Activity for Residential First-Lien Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance at beginning of period	[1]	$ 139,293
Additions		64,725	$ 48,000	$ 44,063
Balance at End of Period	[1]	191,976	139,293
Mortgage Servicing Rights
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance at beginning of period		139,293	64,824	5,315
Additions		95,281	95,550	47,514
Sales		18,206	0	0
Changes in assumptions		(5,453)	(12,467)	15,719
Other changes		(18,939)	(8,614)	(3,724)
Balance at End of Period		$ 191,976	$ 139,293	$ 64,824
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

- Details of Retention and Purc

- Details of Retention and Purchase of MSRs (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Mortgage Servicing Rights [Line Items]
MSR Fair Value	$ 64,725	$ 48,000	$ 44,063
Mortgage Servicing Rights
Mortgage Servicing Rights [Line Items]
MSR Fair Value	95,281	95,550	$ 47,514
Associated Principal	9,119,764	8,672,671
Mortgage Servicing Rights | Jumbo Loan
Mortgage Servicing Rights [Line Items]
MSR Fair Value	8,554	9,006
Associated Principal	915,882	1,061,028
Mortgage Servicing Rights | Conforming Loan
Mortgage Servicing Rights [Line Items]
MSR Fair Value	86,727	86,544
Associated Principal	8,203,882	7,611,643
Mortgage Servicing Rights | Securitizations | Jumbo Loan
Mortgage Servicing Rights [Line Items]
MSR Fair Value	8,202	8,518
Associated Principal	882,860	1,002,235
Mortgage Servicing Rights | Loan Sales | Jumbo Loan
Mortgage Servicing Rights [Line Items]
MSR Fair Value	352	488
Associated Principal	33,022	58,793
Mortgage Servicing Rights | Loan Sales | Conforming Loan
Mortgage Servicing Rights [Line Items]
MSR Fair Value	55,954	38,995
Associated Principal	5,251,537	3,618,256
Mortgage Servicing Rights | Loan Purchases | Conforming Loan
Mortgage Servicing Rights [Line Items]
MSR Fair Value	30,773	47,549
Associated Principal	$ 2,952,345	$ 3,993,387

- Income from Mortgage Servicin

- Income from Mortgage Servicing Rights, Net (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Transfers and Servicing [Abstract]
Income	$ 38,964	$ 19,362	$ 9,239
Cost of sub-servicer	(5,079)	(1,834)	(925)
Net servicing income	33,885	17,528	8,314
Market valuation adjustments	(24,392)	(21,081)	11,995
Market valuation changes of associated derivatives	(12,708)	0	0
MSR provision for repurchases	(707)	(708)	0
MSR income (loss)	$ (3,922)	$ (4,261)	$ 20,309

Derivative Financial Instrum102

Derivative Financial Instruments - Aggregate Fair Value and Notional Amount of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Derivative [Line Items]
Fair Value	$ (46,401)	$ (41,914)
Notional amount	6,483,976	3,663,084
Derivative Liabilities
Derivative [Line Items]
Fair Value	(62,794)	(58,331)
Notional amount	3,083,315	1,675,617
Derivative Assets
Derivative [Line Items]
Fair Value	16,393	16,417
Notional amount	3,400,661	1,987,467
Interest Rate Swaps | Derivative Liabilities
Derivative [Line Items]
Fair Value	(10,134)	(1,328)
Notional amount	1,039,500	206,000
Interest Rate Swaps | Derivative Liabilities | Cash Flow Hedging
Derivative [Line Items]
Fair Value	(48,232)	(46,845)
Notional amount	139,500	139,500
Interest Rate Swaps | Derivative Assets
Derivative [Line Items]
Fair Value	2,590	0
Notional amount	658,000	0
TBAs | Derivative Liabilities
Derivative [Line Items]
Fair Value	(2,519)	(9,506)
Notional amount	1,450,500	1,110,000
TBAs | Derivative Assets
Derivative [Line Items]
Fair Value	2,734	6,654
Notional amount	1,028,500	1,074,000
Futures | Derivative Liabilities
Derivative [Line Items]
Fair Value	(445)	(372)
Notional amount	78,000	90,000
Swaptions | Derivative Assets
Derivative [Line Items]
Fair Value	5,191	7,006
Notional amount	925,000	575,000
Credit default index swaps | Derivative Assets
Derivative [Line Items]
Fair Value	1,207	1,597
Notional amount	25,000	50,000
Loan Purchase Commitments | Derivative Liabilities
Derivative [Line Items]
Fair Value	(1,464)	(41)
Notional amount	375,815	27,324
Loan Purchase Commitments | Derivative Assets
Derivative [Line Items]
Fair Value	4,671	1,160
Notional amount	764,161	288,467
Loan forward Sales Commitments | Derivative Liabilities
Derivative [Line Items]
Fair Value	0	(239)
Notional amount	$ 0	$ 102,793

Derivative Financial Instrum103

Derivative Financial Instruments - Additional Information (Detail) $ in Thousands		12 Months Ended
		Dec. 31, 2015USD ($)counterparty	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Derivative [Line Items]
Notional amount		$ 6,483,976	$ 3,663,084
Accumulated other comprehensive income	[1]	$ 91,993	140,688
Number of counterparties | counterparty		6
Cash Flow Hedging | Interest Rate Swaps
Derivative [Line Items]
Notional amount		$ 140,000
Valuation adjustments on derivatives		(1,000)	(30,000)	$ 32,000
Unsecuritized Residential and Commercial Loans
Derivative [Line Items]
Valuation adjustments on derivatives		(65,000)	(39,000)	51,000
Unsecuritized Residential and Commercial Loans | Interest Rate Contract
Derivative [Line Items]
Notional amount		2,620,000	920,000
Unsecuritized Residential and Commercial Loans | Futures
Derivative [Line Items]
Notional amount		78,000	90,000
Unsecuritized Residential and Commercial Loans | TBAs
Derivative [Line Items]
Notional amount		2,480,000	2,180,000
Maximum
Derivative [Line Items]
Realized net losses reclassified from other comprehensive income (less than)		1,000	1,000	1,000
Maximum | Interest Rate Swaps
Derivative [Line Items]
Accumulated other comprehensive loss that will be amortized into interest expense		(1,000)
Mortgage Banking And Investment Activities
Derivative [Line Items]
Changes in fair value of assets		(14,875)	20,783	85,706
Loan Purchase and Forward Sales Commitments | Mortgage Banking And Investment Activities
Derivative [Line Items]
Changes in fair value of assets		50,234	13,891	(399)
Net unrealized losses on interest rate agreements accounted for as cash flow hedges
Derivative [Line Items]
Accumulated other comprehensive income		$ (47,363)	$ (46,049)	$ (15,888)
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Derivative Financial Instrum104

Derivative Financial Instruments - Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Derivative [Line Items]
Total interest expense	$ (25,039)	$ (23,875)	$ (23,008)	$ (23,961)	$ (23,903)	$ (23,350)	$ (21,151)	$ (19,059)	$ (95,883)	$ (87,463)	$ (80,971)
Cash Flow Hedging | Interest Rate Contract
Derivative [Line Items]
Net interest expense on cash interest rate agreements									(5,883)	(5,951)	(5,889)
Realized expense due to ineffective portion of cash flow hedges									0	0	0
Realized net losses reclassified from other comprehensive income									(95)	(164)	(281)
Total interest expense									$ (5,978)	$ (6,115)	$ (6,170)

Other Assets and Liabilities -

Other Assets and Liabilities - Summary of Other Assets (Detail) - USD ($) $ in Thousands		Dec. 31, 2015	Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Margin receivable		$ 83,191	$ 65,374
FHLBC stock		34,437	10,688
Pledged collateral		53,600	9,927
Investment receivable		3,870	1,103
Guarantee asset		5,697	7,201
Fixed assets and leasehold improvements		4,117	3,008
REO		4,896	4,391
Prepaid expenses		3,640	3,372
Deposits		0	5,000
Other		4,438	3,832
Total Other Assets	[1]	197,886	$ 113,896
Fixed assets basis		6,000
Fixed assets, accumulated depreciation		$ 2,000
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Other Assets and Liabilities106

Other Assets and Liabilities - Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Accrued compensation	$ 17,527	$ 19,273
Guarantee obligations	22,704	7,201
Margin payable	6,415	6,455
Residential loans repurchase reserve	6,403	3,724
Current accounts payable	4,764	2,112
Legal reserve	2,000	2,000
Accrued operating expenses	1,845	3,334
Other	8,239	8,145
Total Other Liabilities	$ 69,897	$ 52,244

Other Assets and Liabilities107

Other Assets and Liabilities - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)Location	Dec. 31, 2014USD ($)Location
Other Assets and Other Liabilities [Line Items]
Real estate owned (REO)	$ 4,896	$ 4,391
Amount related to transfers into REO	9,000
REO liquidations	4,000
Negative market valuation adjustments	$ 4,000
Sequoia
Other Assets and Other Liabilities [Line Items]
Number of REO properties recorded on balance sheet | Location	23	22

Short-Term Debt - Outstanding B

Short-Term Debt - Outstanding Balances of Short-Term Debt by Type of Collateral Securing Debt (Detail) $ in Thousands		12 Months Ended
		Dec. 31, 2015USD ($)Contract	Dec. 31, 2014USD ($)Contract
Short-term Debt [Line Items]
Number of Facilities | Contract		16	17
Outstanding	[1]	$ 1,855,003	$ 1,793,825
Residential Loans
Short-term Debt [Line Items]
Number of Facilities | Contract		4	5
Outstanding		$ 950,022	$ 1,076,188
Limit		$ 1,400,000	$ 1,550,000
Weighted Average Interest Rate		1.90%	1.74%
Weighted Average Days Until Maturity		182 days	156 days
Residential Loans Held for Investment
Short-term Debt [Line Items]
Number of Facilities | Contract		1
Outstanding		$ 137,622
Limit		$ 0
Weighted Average Interest Rate		0.21%
Weighted Average Days Until Maturity		204 days
Commercial Loans
Short-term Debt [Line Items]
Number of Facilities | Contract		2	3
Outstanding		$ 73,718	$ 109,128
Limit		$ 300,000	$ 400,000
Weighted Average Interest Rate		4.13%	3.66%
Weighted Average Days Until Maturity		265 days	185 days
Real Estate Securities
Short-term Debt [Line Items]
Number of Facilities | Contract		9	9
Outstanding		$ 693,641	$ 608,509
Weighted Average Interest Rate		1.47%	1.38%
Weighted Average Days Until Maturity		24 days	20 days
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Short-Term Debt - Additional In

Short-Term Debt - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Short-term Debt [Line Items]
Average balance of short-term debt	$ 1,670,000,000	$ 1,520,000,000
Accrued interest payable on short-term debt	2,000,000	2,000,000
Committed line of credit	10,000,000
Financial Instruments, Owned and Pledged as Collateral, at Fair Value	11,000,000
Committed line of credit with financial institutions, outstanding	0	0
Residential Loans
Short-term Debt [Line Items]
Loan pledged as collateral	1,070,000,000	1,220,000,000
Commercial Loans
Short-term Debt [Line Items]
Loan pledged as collateral	152,000,000	161,000,000
Residential
Short-term Debt [Line Items]
Securities pledged as collateral	$ 827,000,000	$ 762,000,000

Short-Term Debt - Remaining Mat

Short-Term Debt - Remaining Maturities of Short Term Debt (Detail) - USD ($) $ in Thousands		Dec. 31, 2015	Dec. 31, 2014
Short-term Debt [Line Items]
Short-term debt	[1]	$ 1,855,003	$ 1,793,825
Within 30 Days
Short-term Debt [Line Items]
Short-term debt		606,612
31 to 90 Days
Short-term Debt [Line Items]
Short-term debt		438,732
Over 90 Days
Short-term Debt [Line Items]
Short-term debt		809,659
Residential Loans
Short-term Debt [Line Items]
Short-term debt		950,022	1,076,188
Residential Loans | 31 to 90 Days
Short-term Debt [Line Items]
Short-term debt		351,703
Residential Loans | Over 90 Days
Short-term Debt [Line Items]
Short-term debt		598,319
Residential Loans Held for Investment
Short-term Debt [Line Items]
Short-term debt		137,622
Residential Loans Held for Investment | Over 90 Days
Short-term Debt [Line Items]
Short-term debt		137,622
Commercial Loans
Short-term Debt [Line Items]
Short-term debt		73,718	109,128
Commercial Loans | 31 to 90 Days
Short-term Debt [Line Items]
Short-term debt		0
Commercial Loans | Over 90 Days
Short-term Debt [Line Items]
Short-term debt		73,718
Real Estate Securities
Short-term Debt [Line Items]
Short-term debt		693,641	$ 608,509
Real Estate Securities | Within 30 Days
Short-term Debt [Line Items]
Short-term debt		606,612
Real Estate Securities | 31 to 90 Days
Short-term Debt [Line Items]
Short-term debt		87,029
Real Estate Securities | Over 90 Days
Short-term Debt [Line Items]
Short-term debt		$ 0
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Asset-Backed Securities Issu111

Asset-Backed Securities Issued - Additional Information (Detail) - USD ($)		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Description of interest rate		Substantially all ABS issued pay variable rates of interest, which are indexed to one-, three-, or six-month LIBOR.
ABS issued	[1],[2]	$ 1,049,957,000	$ 1,545,119,000
Asset-backed Securities
Debt Instrument [Line Items]
ABS issued		1,049,957,000	1,545,119,000
Amortization of deferred ABS issuance costs		1,000,000	2,000,000	$ 3,000,000
Asset-backed Securities | Contractual maturities of over five years
Debt Instrument [Line Items]
ABS issued		$ 1,040,000,000
Contractual maturities of ABS (in years)		5 years
Asset-backed Securities | Certificates With Principal Value
Debt Instrument [Line Items]
Principal value		$ 1,161,922,000	$ 1,555,413,000
Asset-backed Securities | Certificates With Principal Value | Contractual maturities of over five years
Debt Instrument [Line Items]
Principal value		$ 1,150,000,000
[1]	On January 1, 2015, we adopted ASU 2014-13 and began to account for residential loans held-for-investment and asset backed securities issued at consolidated Sequoia entities (which are VIEs) at fair value. At December 31, 2014, amounts presented in residential loans held-for-investment for these assets included $1,474,386 at historical cost. See Note 3 for further discussion.
[2]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Asset-Backed Securities Issu112

Asset-Backed Securities Issued - Components of Asset-Backed Securities Issued by Consolidated Securitization Entities Sponsored, Along With Other Selected Information (Detail) $ in Thousands		Dec. 31, 2015USD ($)series	Dec. 31, 2014USD ($)series
Debt Instrument [Line Items]
ABS issued	[1],[2]	$ 1,049,957	$ 1,545,119
Asset-backed Securities
Debt Instrument [Line Items]
Market valuation adjustments		(116,637)
Unamortized discount			(12,373)
ABS issued		1,049,957	1,545,119
Asset-backed Securities | Certificates With Principal Value
Debt Instrument [Line Items]
Principal value		1,161,922	1,555,413
Asset-backed Securities | Interest Only Certificates
Debt Instrument [Line Items]
Principal value		4,672	2,079
Asset-backed Securities | Sequoia
Debt Instrument [Line Items]
Market valuation adjustments		(116,637)
Unamortized discount			(12,373)
ABS issued		$ 996,820	$ 1,416,762
Number of series | series		21	24
Asset-backed Securities | Sequoia | Minimum
Debt Instrument [Line Items]
Weighted average interest rates, by series		0.41%	0.36%
Asset-backed Securities | Sequoia | Maximum
Debt Instrument [Line Items]
Weighted average interest rates, by series		2.21%	4.27%
Asset-backed Securities | Sequoia | Certificates With Principal Value
Debt Instrument [Line Items]
Principal value		$ 1,108,785	$ 1,427,056
Asset-backed Securities | Sequoia | Interest Only Certificates
Debt Instrument [Line Items]
Principal value		4,672	2,079
Asset-backed Securities | Residential Resecuritization
Debt Instrument [Line Items]
ABS issued		$ 0	$ 45,044
Weighted average interest rates, by series		0.00%	2.16%
Number of series | series		0	1
Asset-backed Securities | Residential Resecuritization | Certificates With Principal Value
Debt Instrument [Line Items]
Principal value		$ 0	$ 45,044
Asset-backed Securities | Commercial Securitization
Debt Instrument [Line Items]
ABS issued		$ 53,137	$ 83,313
Weighted average interest rates, by series		5.62%	5.62%
Number of series | series		1	1
Asset-backed Securities | Commercial Securitization | Certificates With Principal Value
Debt Instrument [Line Items]
Principal value		$ 53,137	$ 83,313
[1]	On January 1, 2015, we adopted ASU 2014-13 and began to account for residential loans held-for-investment and asset backed securities issued at consolidated Sequoia entities (which are VIEs) at fair value. At December 31, 2014, amounts presented in residential loans held-for-investment for these assets included $1,474,386 at historical cost. See Note 3 for further discussion.
[2]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Asset-Backed Securities Issu113

Asset-Backed Securities Issued - Summary of Accrued Interest Payable on Asset-Backed Securities Issued (Detail) - USD ($) $ in Thousands		Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Accrued interest payable	[1]	$ 8,936	$ 8,503
Asset-backed Securities | Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
Accrued interest payable		804	1,371
Asset-backed Securities | Variable Interest Entity, Primary Beneficiary | Sequoia
Debt Instrument [Line Items]
Accrued interest payable		555	976
Asset-backed Securities | Variable Interest Entity, Primary Beneficiary | Residential Resecuritization
Debt Instrument [Line Items]
Accrued interest payable		0	5
Asset-backed Securities | Variable Interest Entity, Primary Beneficiary | Commercial Securitization
Debt Instrument [Line Items]
Accrued interest payable		$ 249	$ 390
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Asset-Backed Securities Issu114

Asset-Backed Securities Issued - Summary of Carrying Value Components of Collateral for Asset-Backed Securities Issued and Outstanding (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	$ 1,195,574	$ 1,900,118
Residential Loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	1,021,870	1,474,386
Commercial Loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	166,016	194,991
Real Estate Securities
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	221,676
Restricted Cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	365	327
Accrued Interest Receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	2,428	4,347
REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	4,895	4,391
Sequoia
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	1,028,124	1,481,283
Sequoia | Residential Loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	1,021,870	1,474,386
Sequoia | Restricted Cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	228	147
Sequoia | Accrued Interest Receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	1,131	2,359
Sequoia | REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	4,895	4,391
Residential Resecuritization
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	222,196
Residential Resecuritization | Real Estate Securities
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	221,676
Residential Resecuritization | Restricted Cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	43
Residential Resecuritization | Accrued Interest Receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	477
Commercial Securitization
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	167,450	196,639
Commercial Securitization | Commercial Loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	166,016	194,991
Commercial Securitization | Restricted Cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	137	137
Commercial Securitization | Accrued Interest Receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	$ 1,297	$ 1,511

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Detail) - USD ($)		1 Months Ended		12 Months Ended
		Nov. 30, 2014	Mar. 31, 2013	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Federal home loan bank stock				$ 34,437,000	$ 10,688,000
Accrued interest payable				2,000,000	2,000,000
Accrued interest payable (less than)	[1]			8,936,000	$ 8,503,000
Secured borrowings
Debt Instrument [Line Items]
Commercial mortgage loans				$ 63,000,000
Convertible notes | Exchangeable senior notes due 2019
Debt Instrument [Line Items]
Convertible notes		$ 205,000,000
Debt instrument interest rate		5.625%
Debt Instrument Maturity Year		2,019
Debt Instrument Redemption Date		Nov. 15, 2019
Net proceeds from issuance of convertible debt		$ 198,000,000
Interest expense yield				6.59%
Accrued interest payable				$ 2,000,000
Unamortized deferred issuance costs				$ 5,000,000
Convertible debt, conversion ratio				0.0461798
Convertible senior notes conversion per share				$ 21.65
Convertible notes | Convertible senior notes due 2018
Debt Instrument [Line Items]
Convertible notes			$ 288,000,000
Debt instrument interest rate			4.625%
Net proceeds from issuance of convertible debt			$ 279,000,000
Interest expense yield				5.42%
Accrued interest payable				$ 3,000,000
Unamortized deferred issuance costs				$ 4,000,000
Convertible debt, conversion ratio				0.041132
Convertible senior notes conversion per share				$ 24.31
Trust Preferred Securities
Debt Instrument [Line Items]
Interest expense yield				2.62%	2.58%
Debt instrument face amount				$ 100,000,000
Interest expense yield on trust preferred securities and subordinated notes				6.87%	6.88%
Accrued interest payable (less than)				$ 1,000,000	$ 1,000,000
Subordinated Notes
Debt Instrument [Line Items]
Interest expense yield				2.62%	2.58%
Debt instrument face amount				$ 40,000,000
Interest expense yield on trust preferred securities and subordinated notes				6.87%	6.88%
Accrued interest payable (less than)				$ 1,000,000	$ 1,000,000
Residential Loans
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 1,400,000,000	1,550,000,000
FHLB Chicago
Debt Instrument [Line Items]
Interest rate margin reset period				91 days
FHLB Chicago | Residential Loans
Debt Instrument [Line Items]
Residential mortgage loans securing FHLB advances				$ 1,680,000,000
Subsidiaries | FHLB Chicago
Debt Instrument [Line Items]
Maximum borrowing capacity				2,000,000,000
Additional borrowings from FHLB				985,000,000
Outstanding FHLB advances				1,480,000,000	$ 496,000,000
FHLB advances, long-term				$ 1,340,000,000
Weighted average interest rate				0.46%
Weighted average maturity				9 years
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Long-Term Debt - Debt maturitie

Long-Term Debt - Debt maturities (Details) - USD ($) $ in Thousands		Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Total	[1]	$ 2,038,175	$ 1,194,567
FHLB Chicago | Subsidiaries
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayments of Principal in Year Nine		470,171
Long-term Debt, Maturities, Repayments of Principal in Year Ten		783,644
2,017		89,208
Total		$ 1,343,023
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Commitments and Contingencies -

Commitments and Contingencies - Future Lease Commitments (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Leases [Abstract]
2,016		$ 2,864
2,017		2,880
2,018		1,827
2,019		1,189
2,020		$ 1,127
2021 and thereafter	$ 367
Total	$ 10,254

Commitments and Contingencie118

Commitments and Contingencies - Additional Information (Detail) $ in Thousands	Jul. 15, 2010Plaintiff	Dec. 31, 2015USD ($)leaserepurchase_request	Dec. 31, 2014USD ($)loanrepurchase_request	Dec. 31, 2013USD ($)
Loss Contingencies [Line Items]
Number of non-cancelable leases | lease		9
Lease expiration year		2,021
Future lease commitments with expiration date		$ 10,254
Operating lease expense		3,000	$ 3,000	$ 2,000
Unamortized leasehold improvements (less than)		1,000
Leasehold amortization expense (less than)		1,000	1,000	1,000
Residential loans repurchase reserve		$ 6,403	$ 3,724
Residential loans repurchase requests | repurchase_request		79	0
Residential loans, number of loans repurchased | loan			1
Residential loans repurchased during period			$ 61
Residential loans repurchase provision		$ (3,000)	2,000	$ 2,000
Aggregate amount of loss contingency reserves		2,000	2,000
Schwab
Loss Contingencies [Line Items]
Number of other named defendants along with SRF | Plaintiff	26
Residential Loans at Lower of Cost or Fair Value
Loss Contingencies [Line Items]
Principal amount outstanding on loans securitized		2,000	$ 2,000
Other Income
Loss Contingencies [Line Items]
Fee income from risk sharing agreement		3,000
Mortgage Banking And Investment Activities
Loss Contingencies [Line Items]
Market valuation changes in fair value of guarantee asset		(2,000)
Guarantee Obligations
Loss Contingencies [Line Items]
Original principal balance of loans sold subject to risk sharing agreement		2,910,000
Potential future payments on risk sharing agreements		39,000
Principal amount outstanding on loans securitized		$ 2,710,000
FICO credit score		758
Loan to value ratio		76.00%
Guarantee Obligations | Financing Receivables, Equal To Greater Than 30 Days Past Due [Member]
Loss Contingencies [Line Items]
Loans past due		$ 11,000
Guarantee Obligations | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loss Contingencies [Line Items]
Loans past due		$ 1,000
Residential | Sequoia | FHLB Seattle
Loss Contingencies [Line Items]
Statutory interest rate per annum		8.00%
Original principal amount of securities		$ 133,000
Debt instrument principal payment amount		120,000
Debt instrument interest payment amount		11,000
Residential | Sequoia | Schwab
Loss Contingencies [Line Items]
Original principal amount of securities		15,000
Principal balance of securities		13,000
Debt instrument interest amount		$ 1,000

Equity - Changes to Accumulated

Equity - Changes to Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	[1]	$ 140,688
Total other comprehensive income (loss)		(48,695)	$ (8,078)	$ 10,434
Balance at End of Period	[1]	91,993	140,688
Net unrealized gains on available-for-sale securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period		186,737	164,654
Other comprehensive income (loss) before reclassifications		(17,955)	32,635
Amounts reclassified from other accumulated comprehensive income		(29,426)	(10,552)
Total other comprehensive income (loss)		(47,381)	22,083
Balance at End of Period		139,356	186,737	164,654
Net unrealized losses on interest rate agreements accounted for as cash flow hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period		(46,049)	(15,888)
Other comprehensive income (loss) before reclassifications		(1,409)	(30,325)
Amounts reclassified from other accumulated comprehensive income		95	164
Total other comprehensive income (loss)		(1,314)	(30,161)
Balance at End of Period		$ (47,363)	$ (46,049)	$ (15,888)
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Equity - Reclassifications out

Equity - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Mortgage banking and investment activities, net									$ (10,385)	$ 24,792	$ 96,785
Realized gains, net									36,369	15,478	25,259
Net realized loss on interest rate agreements designated as cash flow hedges	$ 25,039	$ 23,875	$ 23,008	$ 23,961	$ 23,903	$ 23,350	$ 21,151	$ 19,059	95,883	87,463	80,971
Net income	$ 41,059	$ 19,164	$ 27,064	$ 14,801	$ 27,122	$ 45,097	$ 16,017	$ 12,333	102,088	100,569	$ 173,246
Other than temporary impairments									419	4,774
Other than temporary impairment losses, income statement									246	565
Accumulated other comprehensive income, other-than-temporary impairments									173	4,209
Net unrealized gains on available-for-sale securities | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Mortgage banking and investment activities, net									246	565
Realized gains, net									(29,672)	(11,117)
Net income									(29,426)	(10,552)
Net unrealized losses on interest rate agreements accounted for as cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net realized loss on interest rate agreements designated as cash flow hedges									95	164
Net income									$ (95)	$ (164)

Equity - Basic and Diluted Earn

Equity - Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share [Abstract]
Net income attributable to Redwood	$ 41,059	$ 19,164	$ 27,064	$ 14,801	$ 27,122	$ 45,097	$ 16,017	$ 12,333	$ 102,088	$ 100,569	$ 173,246
Less: Dividends and undistributed earnings allocated to participating securities									(2,806)	(2,612)	(4,899)
Net income allocated to common shareholders									$ 99,282	$ 97,957	$ 168,347
Basic weighted average common shares outstanding (in shares)									82,945,103	82,837,369	81,985,897
Basic earnings per common share (usd per share)	$ 0.49	$ 0.22	$ 0.31	$ 0.17	$ 0.32	$ 0.53	$ 0.19	$ 0.14	$ 1.20	$ 1.18	$ 2.05
Less: Dividends and undistributed earnings allocated to participating securities									$ (2,677)	$ (2,524)	$ (3,726)
Add back: Interest expense on convertible notes									0	0	12,641
Net income allocated to common shareholders									$ 99,411	$ 98,045	$ 182,161
Net effect of dilutive equity awards (in shares)									1,573,292	2,261,210	1,957,081
Net effect of assumed convertible notes conversion to common shares (in shares)									0	0	9,751,946
Diluted weighted average common shares outstanding (in shares)									84,518,395	85,098,579	93,694,924
Diluted earnings per common share (usd per share)	$ 0.46	$ 0.22	$ 0.31	$ 0.16	$ 0.31	$ 0.50	$ 0.18	$ 0.14	$ 1.18	$ 1.15	$ 1.94

Equity - Additional Information

Equity - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Feb. 26, 2016	Aug. 31, 2015
Stockholders Equity Note [Line Items]
Dilutive common shares outstanding, assuming conversion of convertible notes to common shares (in shares)	0	0	9,751,946
Stock repurchase program, authorized amount					$ 100,000,000
Share repurchased during period (in shares)	6,452,313	0	0
Stock repurchase program, remaining authorized repurchase amount	$ 11,000,000
Subsequent event
Stockholders Equity Note [Line Items]
Stock repurchase program, authorized amount				$ 100,000,000
Convertible debt securities
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share	21,292,309	11,825,450
Equity awards
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share	103,253	59,230	224,241
Exchangeable senior notes due 2019
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share		985,591

Equity Compensation Plans - Add

Equity Compensation Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for grant under Redwood's Incentive Plan (in shares)	1,665,032	2,225,245	1,665,032	2,225,245
Unrecognized compensation cost	$ 23,608	$ 20,269	$ 23,608	$ 20,269
Equity compensation cost (less than for 2013 and 2014)			$ 11,921	9,750	$ 10,077
Share-based compensation, vesting period			3 years
Number of shares purchased by employees (in shares)			310,040
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average amortization period remaining for equity awards			2 years
Share-based compensation, vesting period			4 years
Shares of common stock to be purchased in aggregate for all employees (in shares)	450,000		450,000
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, vesting period			3 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 2,000		$ 2,000
Equity compensation cost (less than for 2013 and 2014)			$ 1,000	$ 1,000	$ 1,000
Weighted average amortization period remaining for equity awards			2 years
Number of stock awards granted (in shares)			141,069	2,574	52,103
Number of stock awards forfeited (in shares)			20,678	15,842	26,635
Number of stock awards vested (in shares)			42,675	44,209	48,615
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 14,000		$ 14,000
Equity compensation cost (less than for 2013 and 2014)			$ 7,000	$ 6,000	$ 6,000
Unvested outstanding stock awards (in units)	1,043,606	880,962	1,043,606	880,962	1,003,053
Weighted-average grant date fair value of stock awards (usd per unit)	$ 17.22	$ 17.20	$ 17.22	$ 17.20	$ 15.55
Number of stock awards vested (in units)	1,363,548	1,287,862	1,363,548	1,287,862	1,263,420
Number of stock awards granted (in shares)			583,958	350,769	552,250
Number of stock awards forfeited (in shares)			10,167	7,870	89,054
Deferred Stock Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average amortization period remaining for equity awards			2 years
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 7,000		$ 7,000
Equity compensation cost (less than for 2013 and 2014)			$ 3,000
Unvested outstanding stock awards (in units)	849,021	761,051	849,021	761,051
Weighted-average grant date fair value of stock awards (usd per unit)	$ 9.46	$ 14.99	$ 9.46	$ 14.99	$ 14.19
Share-based compensation, vesting period			3 years
Number of stock awards granted (in shares)			356,762	268,510	223,749
Description of award vesting rights				The number of underlying shares of our common stock that will vest in future years will vary between 0% (if Three-Year TSR is negative) and 200% (if Three-Year TSR is greater than or equal to 125%) of the target number of PSUs originally granted, adjusted upward (if vesting is greater than 0%) to reflect the value of dividends paid during the three-year vesting period.
Number of stock awards forfeited (in shares)			0		75,362
Grant date fair value assumptions, volatility rate			26.00%	24.00%	27.00%
Grant date fair value assumptions, risk-free rate			1.35%	1.06%	0.62%
Grant date fair value assumptions, dividend yield			0.00%	0.00%	0.00%
Number of stock awards vested (in shares)	57,049	701,440
Performance Stock Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards, vesting percentage			200.00%
Award vesting rights, total share return, percentage			125.00%
Performance Stock Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards, vesting percentage			0.00%

Equity Compensation Plans - Unr

Equity Compensation Plans - Unrecognized Compensation Cost (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost at beginning of period	$ 20,269
Equity grants	15,817
Equity grant forfeitures	(557)
Equity compensation expense	(11,921)	$ (9,750)	$ (10,077)
Unrecognized Compensation Cost at End of Period	23,608	20,269
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity compensation expense	(1,000)	(1,000)	(1,000)
Unrecognized Compensation Cost at End of Period	2,000
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity compensation expense	(7,000)	(6,000)	$ (6,000)
Unrecognized Compensation Cost at End of Period	14,000
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity compensation expense	(3,000)
Unrecognized Compensation Cost at End of Period	7,000
Incentive Plans | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost at beginning of period	1,091
Equity grants	2,781
Equity grant forfeitures	(387)
Equity compensation expense	(1,092)
Unrecognized Compensation Cost at End of Period	2,393	1,091
Incentive Plans | Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost at beginning of period	12,304
Equity grants	9,425
Equity grant forfeitures	(170)
Equity compensation expense	(7,167)
Unrecognized Compensation Cost at End of Period	14,392	12,304
Incentive Plans | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost at beginning of period	6,874
Equity grants	3,375
Equity compensation expense	(3,426)
Unrecognized Compensation Cost at End of Period	6,823	$ 6,874
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity grants	236
Equity compensation expense	(236)
Unrecognized Compensation Cost at End of Period	$ 0

Equity Compensation Plans - Res

Equity Compensation Plans - Restricted Stock Outstanding (Detail) - Restricted Stock - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Shares
Outstanding at beginning of period (in shares)	109,464	166,941	190,088
Granted (in shares)	141,069	2,574	52,103
Vested (in shares)	(42,675)	(44,209)	(48,615)
Forfeited (in shares)	(20,678)	(15,842)	(26,635)
Balance at End of Period (in shares)	187,180	109,464	166,941
Weighted Average Grant Date Fair Market Value
Outstanding at beginning of period (usd per share)	$ 15.97	$ 15.01	$ 13.12
Granted (usd per share)	19.03	19.42	18.71
Vested (usd per share)	14.87	13.44	12.63
Forfeited (usd per share)	18.74	13.45	13.14
Balance at End of Period (usd per share)	$ 18.22	$ 15.97	$ 15.01

Equity Compensation Plans - Def

Equity Compensation Plans - Deferred Stock Units Activity (Detail) - Deferred Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Units
Outstanding at beginning of period (in shares)	2,168,824	2,266,473	2,361,285
Granted (in shares)	583,958	350,769	552,250
Distributions	(335,461)	(440,548)	(558,008)
Forfeited (in shares)	(10,167)	(7,870)	(89,054)
Balance at End of Period (in shares)	2,407,154	2,168,824	2,266,473
Weighted Average Grant Date Fair Market Value
Outstanding at beginning of period (usd per share)	$ 16.20	$ 15.41	$ 14.46
Granted (usd per share)	16.11	19.62	19.31
Distributions (usd per share)	14.20	14.82	15.51
Forfeitures (usd per share)	16.60	19.06	11.18
Balance at End of Period (usd per share)	$ 16.45	$ 16.20	$ 15.41

Equity Compensation Plans - Sum

Equity Compensation Plans - Summary of Activity Related to ESPP (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Stock Purchase Plan (ESPP) Activity [Roll Forward]
Balance at beginning of period	$ 3	$ 3	$ 3
Employee purchases	475	494	518
Cost of common stock issued	(460)	(494)	(518)
Balance at End of Period	$ 18	$ 3	$ 3

Equity Compensation Plans - 128

Equity Compensation Plans - Summary of Activity Related to Executive Deferred Compensation Plan (Detail) - Executive Deferred Compensation Plan - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Deferred Compensation Cash-based Arrangements, Liability, Current and Noncurrent [Roll Forward]
Balance at beginning of period	$ 2,049	$ 1,882	$ 1,516
New deferrals	600	575	656
Accrued interest	61	70	58
Withdrawals	(615)	(478)	(348)
Balance at End of Period	$ 2,095	$ 2,049	$ 1,882

Mortgage Banking and Invetsm129

Mortgage Banking and Invetsment Activities, Net (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Mortgage Loans on Real Estate [Line Items]
Hedging allocation	$ 0
Total investment activities	(21,357)	$ (10,202)	$ (5,747)
Mortgage banking and investment activities, net	(10,385)	24,792	96,785
Residential Mortgage Banking Activities
Mortgage Loans on Real Estate [Line Items]
Hedging allocation	1,120	0	0
Other income, net	4,040	3,468	48
Mortgage banking activities, net	8,268	21,554	79,431
Commercial Mortgage Banking Activities
Mortgage Loans on Real Estate [Line Items]
Net gains on commercial loan sales	0	0	11,031
Other income, net	450	541	0
Mortgage banking activities, net	2,704	13,440	23,101
Investment Activities
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of risk management derivatives	(8,557)	(7,792)	223
Hedging allocation	(1,120)	0	0
Residential loans at fair value | Residential Mortgage Banking Activities
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	3,712	51,311	(10,455)
Real estate securities | Residential Mortgage Banking Activities
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	(15,261)	(23,839)	42,451
Real estate securities | Investment Activities
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	(2,265)	(923)	(5,357)
Risk management derivatives | Residential Mortgage Banking Activities
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	14,657	(9,386)	47,387
Risk management derivatives | Commercial Mortgage Banking Activities
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of risk management derivatives	(8,011)	(7,890)	3,376
Commercial Loans at Fair Value | Commercial Mortgage Banking Activities
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	10,265	20,789	8,694
Residential Loans Held for Investment | Investment Activities
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	(6,337)	(697)	0
Investments In Consolidated Variable Interest Entity | Investment Activities
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	(1,192)	(894)	(613)
Risk Sharing Investments | Investment Activities
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	$ (1,886)	$ 104	$ 0

Operating Expenses - Components

Operating Expenses - Components of Operating Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other Income and Expenses [Abstract]
Fixed compensation expense									$ 35,093	$ 29,057	$ 23,248
Variable compensation expense									12,606	14,863	22,245
Equity compensation expense									11,921	9,750	10,077
Total compensation expense									59,620	53,670	55,570
Systems and consulting									10,212	11,654	7,517
Loan acquisition costs									10,326	8,207	7,605
Accounting and legal									4,837	5,244	6,263
Office costs									5,270	5,011	3,503
Corporate costs									2,049	2,237	2,721
Other operating expenses									5,102	4,100	3,428
Total Operating Expenses	$ 22,638	$ 24,497	$ 25,218	$ 25,063	$ 26,462	$ 21,406	$ 22,282	$ 19,973	$ 97,416	$ 90,123	86,607
Severance expense											$ 4,000

Taxes - Components of Net Defer

Taxes - Components of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands		Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets
Net operating loss carryforward - state		$ 95,972	$ 91,579
Net capital loss carryforward - state		22,603	27,308
Net operating loss carryforward - federal		32,929	18,765
Net capital loss carryforward - federal		7,971	7,903
Real estate assets		5,144	0
Interest rate agreements		1,472	0
Allowances and accruals		3,458	2,355
Other		513	210
Total deferred tax assets		170,062	148,120
Deferred Tax Liabilities
Real estate assets		0	(6,821)
Mortgage Servicing Rights		(50,630)	(37,581)
Interest rate agreements		0	(87)
Tax effect of unrealized gains - OCI		(2,638)	(2,684)
Total deferred tax liabilites		(53,268)	(47,173)
Valuation allowance		(116,794)	(111,183)
Total Deferred Tax Asset (Liability), net of Valuation Allowance	[1]	$ 0	$ (10,236)
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Taxes - Provision for (Benefit

Taxes - Provision for (Benefit from) Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current Provision for Income Taxes
Federal	$ 144	$ 24	$ 3,490
State	167	17	142
Total Current Provision for Income Taxes	311	41	3,632
Deferred Provision for Income Taxes
Federal	(10,198)	703	7,316
State	(459)	0	0
Total Deferred Provision for (Benefit from) Income Taxes	(10,657)	703	7,316
Total Provision for Income Taxes	$ (10,346)	$ 744	$ 10,948

Taxes - Additional Information

Taxes - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Taxes [Line Items]
(Provision for) benefit from income taxes	$ 10,346	$ (744)	$ (10,948)
Percentage prohibited transaction tax for not meeting the requirements of statutory relief	100.00%
Federal
Income Taxes [Line Items]
Estimated operating loss carry forwards	$ 70,000
Net Operating Loss carry forwards	97,000
Net Operating Loss carry forwards, expiring year		2,028
Federal | Minimum
Income Taxes [Line Items]
Net Operating Loss carry forwards, expiring year		2,030
Federal | Maximum
Income Taxes [Line Items]
Net Operating Loss carry forwards, expiring year		2,035
State and Local Jurisdiction
Income Taxes [Line Items]
Net Operating Loss carry forwards	$ 1,300,000

Taxes - Reconciliation of Statu

Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Federal statutory rate	34.00%	34.00%	34.00%
State statutory rate, net of Federal tax effect	7.20%	7.20%	7.20%
Differences in taxable (loss) income from GAAP income	(20.30%)	(14.50%)	(1.90%)
Change in valuation allowance	6.10%	(0.10%)	(16.40%)
Dividends paid deduction	(38.30%)	(25.90%)	(17.00%)
Effective Tax Rate	(11.30%)	0.70%	5.90%

Segment Information - Additiona

Segment Information - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2015Segment
Segment Reporting [Abstract]
Number of operating segments	3

Segment Information - Financial

Segment Information - Financial Information by Segment (Detail) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Interest income		$ 68,829	$ 63,484	$ 63,373	$ 63,746	$ 65,251	$ 63,351	$ 57,993	$ 55,475	$ 259,432	$ 242,070	$ 226,156
Interest expense		(25,039)	(23,875)	(23,008)	(23,961)	(23,903)	(23,350)	(21,151)	(19,059)	(95,883)	(87,463)	(80,971)
Net Interest Income		43,790	39,609	40,365	39,785	41,348	40,001	36,842	36,416	163,549	154,607	145,185
Provision for loan losses										355	(961)	(4,737)
Non interest income
MSR income (loss)										(3,922)	(4,261)	20,309
Realized gains, net										36,369	15,478	25,259
Total non interest income, net		19,593	(3,412)	14,104	(5,031)	10,686	28,519	1,475	(4,671)	25,254	37,790	142,353
Direct operating expenses		(22,638)	(24,497)	(25,218)	(25,063)	(26,462)	(21,406)	(22,282)	(19,973)	(97,416)	(90,123)	(86,607)
Other expense										0	0	(12,000)
(Provision for) benefit from income taxes										10,346	(744)	(10,948)
Net income		41,059	$ 19,164	$ 27,064	$ 14,801	27,122	$ 45,097	$ 16,017	$ 12,333	102,088	100,569	173,246
Supplemental Disclosures
Residential loans		3,928,803				3,398,573				3,928,803	3,398,573
Commercial loans		402,647				566,927				402,647	566,927
Real estate securities	[1]	1,233,256				1,379,230				1,233,256	1,379,230
MSRs	[1]	191,976				139,293				191,976	139,293
Total assets	[1]	6,231,027				5,918,966				6,231,027	5,918,966
Mortgage banking and investment activities, net										(10,385)	24,792	96,785
Other income										3,192	1,781	0
Amortization										32,403	33,698	26,442
Hedging allocation										0
Operating Segments | Residential Mortgage Banking
Segment Reporting Information [Line Items]
Interest income										52,260	58,272	52,517
Interest expense										(17,207)	(12,776)	(10,167)
Net Interest Income										35,053	45,496	42,350
Provision for loan losses										0	0	0
Non interest income
MSR income (loss)										0	0	0
Realized gains, net										0	0	0
Total non interest income, net										8,268	21,554	79,431
Direct operating expenses										(43,182)	(37,664)	(22,880)
Other expense												0
(Provision for) benefit from income taxes										4,169	(1,774)	(5,947)
Net income										4,308	27,612	92,954
Supplemental Disclosures
Residential loans		1,115,738				1,342,519				1,115,738	1,342,519
Commercial loans		0				0				0	0
Real estate securities		197,007				93,802				197,007	93,802
MSRs		0				0				0	0
Total assets		1,347,492				1,468,856				1,347,492	1,468,856
Mortgage banking and investment activities, net										8,268	21,554	79,431
Other income										0	0
Amortization										(186)	(181)	0
Hedging allocation										1,120
Operating Segments | Residential Investments
Segment Reporting Information [Line Items]
Interest income										135,395	110,433	96,399
Interest expense										(11,204)	(11,848)	(10,067)
Net Interest Income										124,191	98,585	86,332
Provision for loan losses										0	0	0
Non interest income
MSR income (loss)										(3,922)	(4,261)	20,309
Realized gains, net										36,369	13,777	24,765
Total non interest income, net										15,550	519	39,940
Direct operating expenses										(4,346)	(3,681)	(4,035)
Other expense												0
(Provision for) benefit from income taxes										847	1,340	(3,027)
Net income										136,242	96,763	119,210
Supplemental Disclosures
Residential loans		1,791,195				581,668				1,791,195	581,668
Commercial loans		0				0				0	0
Real estate securities		1,028,171				1,285,428				1,028,171	1,285,428
MSRs		191,976				139,293				191,976	139,293
Total assets		3,140,604				2,057,256				3,140,604	2,057,256
Mortgage banking and investment activities, net										(20,089)	(9,178)	(5,134)
Other income										3,192	181
Amortization										36,850	42,784	34,578
Hedging allocation										(1,070)
Operating Segments | Commercial Mortgage Banking and Investments
Segment Reporting Information [Line Items]
Interest income										46,933	47,567	43,420
Interest expense										(13,809)	(15,836)	(12,677)
Net Interest Income										33,124	31,731	30,743
Provision for loan losses										355	(84)	(3,288)
Non interest income
MSR income (loss)										0	0	0
Realized gains, net										0	0	210
Total non interest income, net										2,704	13,440	23,311
Direct operating expenses										(11,331)	(11,324)	(9,579)
Other expense												0
(Provision for) benefit from income taxes										1,452	(234)	(3,827)
Net income										26,304	33,529	37,360
Supplemental Disclosures
Residential loans		0				0				0	0
Commercial loans		402,647				566,927				402,647	566,927
Real estate securities		8,078				0				8,078	0
MSRs		0				0				0	0
Total assets		416,258				575,943				416,258	575,943
Mortgage banking and investment activities, net										2,704	13,440	23,101
Other income										0	0
Amortization										(267)	(673)	(798)
Hedging allocation										0
Corporate/Other
Segment Reporting Information [Line Items]
Interest income										24,844	25,798	33,820
Interest expense										(53,663)	(47,003)	(48,060)
Net Interest Income										(28,819)	(21,205)	(14,240)
Provision for loan losses										0	(877)	(1,449)
Non interest income
MSR income (loss)										0	0	0
Realized gains, net										0	1,701	284
Total non interest income, net										(1,268)	2,277	(329)
Direct operating expenses										(38,557)	(37,454)	(50,113)
Other expense										0	0	(12,000)
(Provision for) benefit from income taxes										3,878	(76)	1,853
Net income										(64,766)	(57,335)	(76,278)
Supplemental Disclosures
Residential loans		1,021,870				1,474,386				1,021,870	1,474,386
Commercial loans		0				0				0	0
Real estate securities		0				0				0	0
MSRs		0				0				0	0
Total assets		$ 1,326,673				$ 1,816,911				1,326,673	1,816,911
Mortgage banking and investment activities, net										(1,268)	(1,024)	(613)
Other income										0	1,600
Amortization										(3,994)	$ (8,232)	$ (7,338)
Hedging allocation										$ (50)
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2015 and December 31, 2014, assets of consolidated VIEs totaled $1,195,574 and $1,900,208, respectively. At December 31, 2015 and December 31, 2014, liabilities of consolidated VIEs totaled $1,050,861 and $1,546,490, respectively. See Note 4 for further discussion.

Segment Information - Component

Segment Information - Components of Corporate/Other (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Interest income	$ 68,829	$ 63,484	$ 63,373	$ 63,746	$ 65,251	$ 63,351	$ 57,993	$ 55,475	$ 259,432	$ 242,070	$ 226,156
Interest expense	(25,039)	(23,875)	(23,008)	(23,961)	(23,903)	(23,350)	(21,151)	(19,059)	(95,883)	(87,463)	(80,971)
Net Interest Income	43,790	39,609	40,365	39,785	41,348	40,001	36,842	36,416	163,549	154,607	145,185
Provision for loan losses									355	(961)	(4,737)
Mortgage banking and investment activities, net									(10,385)	24,792	96,785
MSR income (loss), net									(3,922)	(4,261)	20,309
Realized gains, net									36,369	15,478	25,259
Total non interest income, net	19,593	(3,412)	14,104	(5,031)	10,686	28,519	1,475	(4,671)	25,254	37,790	142,353
Direct operating expenses	(22,638)	(24,497)	(25,218)	(25,063)	(26,462)	(21,406)	(22,282)	(19,973)	(97,416)	(90,123)	(86,607)
Other expense									0	0	(12,000)
(Provision for) benefit from income taxes									10,346	(744)	(10,948)
Net income	$ 41,059	$ 19,164	$ 27,064	$ 14,801	$ 27,122	$ 45,097	$ 16,017	$ 12,333	102,088	100,569	173,246
Legacy Consolidated VIEs
Segment Reporting Information [Line Items]
Interest income									24,814	25,786	33,663
Interest expense									(15,646)	(20,844)	(25,876)
Net Interest Income									9,168	4,942	7,787
Provision for loan losses									0	(877)	(1,449)
Mortgage banking and investment activities, net									(1,192)	(894)	(613)
MSR income (loss), net									0	0	0
Other income									0	0	0
Realized gains, net									0	1,701	284
Total non interest income, net									(1,192)	807	(329)
Direct operating expenses									0	(165)	(231)
Other expense									0	0	0
(Provision for) benefit from income taxes									0	0	0
Net income									7,976	4,707	5,778
Other
Segment Reporting Information [Line Items]
Interest income									30	12	157
Interest expense									(38,017)	(26,159)	(22,184)
Net Interest Income									(37,987)	(26,147)	(22,027)
Provision for loan losses									0	0	0
Mortgage banking and investment activities, net									(76)	(130)	0
MSR income (loss), net									0	0	0
Other income									0	1,600	0
Realized gains, net									0	0	0
Total non interest income, net									(76)	1,470	0
Direct operating expenses									(38,557)	(37,289)	(49,882)
Other expense									0	0	(12,000)
(Provision for) benefit from income taxes									3,878	(76)	1,853
Net income									(72,742)	(62,042)	(82,056)
Corporate/Other
Segment Reporting Information [Line Items]
Interest income									24,844	25,798	33,820
Interest expense									(53,663)	(47,003)	(48,060)
Net Interest Income									(28,819)	(21,205)	(14,240)
Provision for loan losses									0	(877)	(1,449)
Mortgage banking and investment activities, net									(1,268)	(1,024)	(613)
MSR income (loss), net									0	0	0
Other income									0	1,600	0
Realized gains, net									0	1,701	284
Total non interest income, net									(1,268)	2,277	(329)
Direct operating expenses									(38,557)	(37,454)	(50,113)
Other expense									0	0	(12,000)
(Provision for) benefit from income taxes									3,878	(76)	1,853
Net income									$ (64,766)	$ (57,335)	$ (76,278)

Quarterly Financial Data (Detai

Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating results:
Interest income	$ 68,829	$ 63,484	$ 63,373	$ 63,746	$ 65,251	$ 63,351	$ 57,993	$ 55,475	$ 259,432	$ 242,070	$ 226,156
Interest expense	(25,039)	(23,875)	(23,008)	(23,961)	(23,903)	(23,350)	(21,151)	(19,059)	(95,883)	(87,463)	(80,971)
Net interest income	43,790	39,609	40,365	39,785	41,348	40,001	36,842	36,416	163,549	154,607	145,185
Non-interest income (loss)	19,593	(3,412)	14,104	(5,031)	10,686	28,519	1,475	(4,671)	25,254	37,790	142,353
Operating expenses	(22,638)	(24,497)	(25,218)	(25,063)	(26,462)	(21,406)	(22,282)	(19,973)	(97,416)	(90,123)	(86,607)
Net income	$ 41,059	$ 19,164	$ 27,064	$ 14,801	$ 27,122	$ 45,097	$ 16,017	$ 12,333	$ 102,088	$ 100,569	$ 173,246
Per share data:
Net income - basic (usd per share)	$ 0.49	$ 0.22	$ 0.31	$ 0.17	$ 0.32	$ 0.53	$ 0.19	$ 0.14	$ 1.20	$ 1.18	$ 2.05
Net income - diluted (usd per share)	0.46	0.22	0.31	0.16	0.31	0.50	0.18	0.14	1.18	1.15	1.94
Regular dividends declared per common share (usd per share)	$ 0.28000	$ 0.28000	$ 0.28000	$ 0.28000	$ 0.28	$ 0.28	$ 0.28	$ 0.28	$ 1.12	$ 1.12	$ 1.12
Commercial Loans Held-for-Investment, at Amortized Cost
Quarterly Financial Information [Line Items]
Yield maintenance fees received									$ 4,000	$ 2,000
Commercial Loans Held-for-Investment, at Amortized Cost | Interest income
Quarterly Financial Information [Line Items]
Yield maintenance fees received	$ 2,000		$ 2,000

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Feb. 26, 2016	Aug. 31, 2015
Subsequent Event [Line Items]
Stock repurchase program, authorized amount		$ 100,000,000
Subsequent event
Subsequent Event [Line Items]
Stock repurchase program, authorized amount	$ 100,000,000