Redwood Trust (RWT) 10-Q 9 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 02, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
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		76,964,286

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
ASSETS
Residential loans		$ 3,715,056	$ 3,928,803
Commercial loans		363,893	402,647
Real estate securities, at fair value	[1]	919,927	1,233,256
Mortgage servicing rights, at fair value		126,620	191,976	[1]
Cash and cash equivalents	[1]	305,115	220,229
Total earning assets	[1]	5,430,611	5,976,911
Restricted cash	[1]	2,137	5,567
Accrued interest receivable	[1]	19,766	23,290
Derivative assets	[1]	31,975	16,393
Other assets	[1]	242,391	197,886
Total Assets	[1]	5,726,880	6,220,047
Liabilities
Short-term debt	[1]	804,175	1,855,003
Accrued interest payable	[1]	15,522	8,936
Derivative liabilities	[1]	97,468	62,794
Accrued expenses and other liabilities	[1]	82,169	69,897
Asset-backed securities issued (includes $1,105,588 and $0 at fair value)	[1],[2]	958,364	1,049,415
Long-term debt (includes $65,181 and $63,152 at fair value), net (2)	[1],[2]	2,683,432	2,027,737
Total liabilities	[1]	4,641,130	5,073,782
Equity
Common stock, par value $0.01 per share, 180,000,000 shares authorized; 76,627,231 and 78,162,765 issued and outstanding	[1]	766	782
Additional paid-in capital	[1]	1,680,981	1,695,956
Accumulated other comprehensive income	[1]	56,712	91,993
Cumulative earnings	[1]	1,030,746	1,018,683
Cumulative distributions to stockholders	[1]	(1,683,455)	(1,661,149)
Total equity	[1]	1,085,750	1,146,265
Total Liabilities and Equity	[1]	5,726,880	6,220,047
Residential loans, held-for-sale, at fair value
ASSETS
Residential loans	[1]	441,076	1,115,738
Residential loans, held-for-investment, at fair value
ASSETS
Residential loans	[1]	3,273,980	2,813,065
Commercial loans, held-for-sale, at fair value
ASSETS
Commercial loans	[1]	0	39,141
Commercial loans, held-for-investment (includes $69,674 and $67,657 at fair value)
ASSETS
Commercial loans	[1]	$ 363,893	$ 363,506
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.
[2]	At March 31, 2016 and December 31, 2015, Asset-backed securities issued, net included $339 and $542, respectively, of deferred debt issuance costs, and long-term debt, net included $9,513 and $10,438, respectively, of deferred debt issuance costs.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Asset-backed securities at fair value	$ 907,023	$ 996,820
Long-term debt at fair value	$ 65,181	$ 63,152
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	180,000,000	180,000,000
Common stock, issued	76,627,231	78,162,765
Common stock, outstanding	76,627,231	78,162,765
Variable interest held by entity, assets	$ 1,102,195	$ 1,195,574
Variable interest held by entity, liabilities	959,464	1,050,861
Carrying value of loans	3,715,056	3,928,803
Commercial Loans Held For Investment
Loans at fair value	69,674	67,657
Asset-backed Securities
Deferred debt issuance costs	339	542
Long-term debt
Deferred debt issuance costs	$ 9,513	$ 10,438

Consolidated Statements Of Inco

Consolidated Statements Of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest Income
Residential loans	$ 31,400	$ 25,009
Commercial loans	9,460	10,914
Real estate securities	21,095	27,775
Other interest income	373	48
Total interest income	62,328	63,746
Interest Expense
Short-term debt	(6,697)	(7,224)
Asset-backed securities issued	(4,282)	(6,202)
Long-term debt	(12,971)	(10,535)
Total Interest Expense	(23,950)	(23,961)
Net Interest Income	38,378	39,785
Provision for loan losses	(289)	(206)
Net Interest Income After Provision	38,089	39,579
Noninterest Income
Mortgage banking activities, net	7,218	1,923
Mortgage servicing rights income (loss), net	6,281	(10,924)
Investment fair value changes, net	(19,538)	(1,145)
Other income	955	809
Realized gains, net	9,538	4,306
Total non-interest income (loss), net	4,454	(5,031)
Operating expenses	(30,452)	(25,063)
Net income before provision for income taxes	12,091	9,485
(Provision for) benefit from income taxes	(28)	5,316
Net Income	$ 12,063	$ 14,801
Basic earnings per common share (usd per share)	$ 0.15	$ 0.17
Diluted earnings per common share (usd per share)	0.15	0.16
Regular dividends declared per common share (usd per share)	$ 0.28	$ 0.28
Basic weighted average shares outstanding (shares)	77,137,682	83,360,312
Diluted weighted average shares outstanding (shares)	77,137,682	85,622,216

Consolidated Statements Of Comp

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 12,063	$ 14,801
Other comprehensive income (loss):
Net unrealized (loss) gain on available-for-sale securities	(10,103)	5,053
Reclassification of unrealized gain on available-for-sale securities to net income	(10,953)	(1,690)
Net unrealized loss on interest rate agreements	(14,243)	(8,442)
Reclassification of unrealized loss on interest rate agreements to net income	18	31
Total other comprehensive income (loss)	(35,281)	(5,048)
Total Comprehensive Income (Loss)	$ (23,218)	$ 9,753

Consolidated Statements Of Chan

Consolidated Statements Of Changes In Equity - USD ($) $ in Thousands		Total		Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Cumulative Earnings	Cumulative Distributions to Stockholders
Increase (Decrease) in Stockholders' Equity
Cumulative adjustment - adoption of ASU 2014-13 | Accounting Standards Update 2014-13	[1]	$ 9,728					$ 9,728
Adjusted balance		1,265,869		$ 834	$ 1,774,030	$ 140,688	916,595	$ (1,566,278)
Beginning balance (in shares) at Dec. 31, 2014				83,443,141
Beginning balance at Dec. 31, 2014		1,256,141		$ 834	1,774,030	140,688	906,867	(1,566,278)
Increase (Decrease) in Stockholders' Equity
Net income		14,801					14,801
Other comprehensive income (loss)		(5,048)				(5,048)
Issuance of common stock:
Dividend reinvestment & stock purchase plans (in shares)				185,045
Dividend reinvestment & stock purchase plans		3,241		$ 2	3,239
Employee stock purchase and incentive plans (in shares)				120,435
Employee stock purchase and incentive plans		(183)		$ 1	(184)
Non-cash equity award compensation		2,692			2,692
Common dividends declared		(24,162)						(24,162)
Ending balance (in shares) at Mar. 31, 2015				83,748,621
Ending balance at Mar. 31, 2015		1,257,210		$ 837	1,779,777	135,640	931,396	(1,590,440)
Beginning balance (in shares) (Previously Reported) at Dec. 31, 2015				78,162,765
Beginning balance (Previously Reported) at Dec. 31, 2015		1,146,265		$ 782	1,695,956	91,993	1,018,683	(1,661,149)
Beginning balance at Dec. 31, 2015	[2]	1,146,265
Increase (Decrease) in Stockholders' Equity
Net income		12,063					12,063
Other comprehensive income (loss)		(35,281)				(35,281)
Issuance of common stock:
Employee stock purchase and incentive plans (in shares)				73,651
Employee stock purchase and incentive plans		(152)		$ 0	(152)
Non-cash equity award compensation		5,782			5,782
Share repurchases (in shares)				(1,609,185)
Share repurchases		(20,621)		$ (16)	(20,605)
Common dividends declared		(22,306)						(22,306)
Ending balance (in shares) at Mar. 31, 2016				76,627,231
Ending balance at Mar. 31, 2016		$ 1,085,750	[2]	$ 766	$ 1,680,981	$ 56,712	$ 1,030,746	$ (1,683,455)
[1]	On January 1, 2015, we adopted ASU 2014-13, "Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity," and recorded this cumulative-effect adjustment, which represents the net effect of adjusting the assets and liabilities of the consolidated Sequoia collateralized financing entities ("CFEs") from amortized historical cost to fair value.
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Consolidated Statements Of Cash

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016		Mar. 31, 2015
Cash Flows From Operating Activities:
Net income	$ 12,063		$ 14,801
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of premiums, discounts, and securities issuance costs, net	(7,568)		(9,176)
Depreciation and amortization of non-financial assets	277		143
Purchases of held-for-sale loans	(1,245,068)		(2,558,425)
Proceeds from sales of held-for-sale loans	1,336,617		2,455,452
Principal payments on held-for-sale loans	23,518		14,394
Net settlements of derivatives	(1,154)		(19,373)
Provision for loan losses	289		206
Non-cash equity award compensation expense	5,782		2,692
Market valuation adjustments	15,848		19,435
Realized gains, net	(9,538)		(4,306)
Net change in:
Accrued interest receivable and other assets	(30,056)		(38,394)
Accrued interest payable, deferred tax liabilities, and accrued expenses and other liabilities	4,966		3,476
Net cash provided by (used in) operating activities	105,976		(119,075)
Cash Flows From Investing Activities:
Purchases of loans held-for-investment	0		(7,600)
Proceeds from sales of loans held-for-investment	6,298		0
Principal payments on loans held-for-investment	125,631		101,754
Purchases of real estate securities	(48,446)		(15,613)
Proceeds from sales of real estate securities	340,798		77,293
Principal payments on real estate securities	22,401		26,313
Purchase of mortgage servicing rights	(5,397)		(5,173)
Proceeds from sales of mortgage servicing rights	28,268		17,235
Net change in restricted cash	3,430		(97)
Net cash provided by investing activities	472,983		194,112
Cash Flows From Financing Activities:
Proceeds from borrowings on short-term debt	1,027,320		1,641,380
Repayments on short-term debt	(2,078,148)		(1,933,041)
Proceeds from issuance of asset-backed securities	0		420
Repayments on asset-backed securities issued	(50,868)		(80,918)
Deferred securities issuance costs	0		(32)
Proceeds from issuance of long-term debt	771,287		354,932
Repayments on long-term debt	(118,146)		0
Net settlements of derivatives	(73)		658
Net proceeds from issuance of common stock	77		134
Net payments on repurchase of common stock	(22,987)		0
Taxes paid on equity award distributions	(229)		(318)
Dividends paid	(22,306)		(24,162)
Net cash used in financing activities	(494,073)		(40,947)
Net increase in cash and cash equivalents	84,886		34,090
Cash and cash equivalents at beginning of period	220,229	[1]	269,730
Cash and cash equivalents at end of period	305,115	[1]	303,820
Cash paid during the period for:
Interest	18,634		15,032
Taxes	64		38
Supplemental Noncash Information:
Real estate securities retained from loan securitizations	0		6,282
Retention of mortgage servicing rights from loan securitizations and sales	3,463		15,675
Transfers from loans held-for-sale to loans held-for-investment	660,818		447,840
Transfers from loans held-for-investment to loans held-for-sale	54,747		0
Transfers from residential loans to real estate owned	$ 2,042		$ 3,166
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Organization

Organization	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [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. We operate our business in three segments: Residential Investments, Residential Mortgage Banking, and Commercial. 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. 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.” We sponsor our Sequoia securitization program, which we use for the securitization of residential mortgage loans. References to Sequoia with respect to any time or period generally refer collectively to all the then consolidated Sequoia securitization entities for the periods presented. We have also engaged in securitization transactions in order to obtain financing for certain of our securities and commercial loans.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements presented herein are at March 31, 2016 and December 31, 2015 , and for the three months ended March 31, 2016 and 2015 . These interim unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in financial statements 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”) — have been condensed or omitted according to these SEC rules and regulations. Management believes that the disclosures included in these interim financial statements should be read in conjunction with consolidated financial statements and notes thereto included in the company's Annual Report on Form 10-K for the year ended December 31, 2015 . In the opinion of management, all normal and recurring adjustments to present fairly the financial condition of the company at March 31, 2016 and results of operations for all periods presented have been made. The results of operations for the three months ended March 31, 2016 should not be construed as indicative of the results to be expected for the full year. 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 mortgage servicing right ("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 I, Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Quarterly Report on Form 10-Q. Additionally, in the first quarter of 2016, we began to present the changes in fair value of certain investments and their associated derivatives in the new line item "Investment fair value changes, net" on our consolidated statements of income and began to present income from mortgage banking activities in "Mortgage banking activities, net" on our consolidated statements of income. We conformed the presentation of prior periods related to this change for consistency of comparison. See Notes 18 and 19 for additional detail on the components of these income statement line items. 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, manager, 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Significant Accounting Policies Included in Note 3 to the Consolidated Financial Statements of our 2015 Annual Report on Form 10-K is a summary of our significant accounting policies. Provided below is a summary of additional accounting policies that are significant to the company’s consolidated financial condition and results of operations for the three months ended March 31, 2016 . Recent Accounting Pronouncements Newly Adopted Accounting Standards Updates ("ASUs") 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. We adopted this guidance, as required, in the first quarter of 2016, which did not 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, and is required to be applied on a retrospective basis. We adopted this guidance, as required, in the first quarter of 2016 and now present our deferred securities issuance costs as a reduction to the related liabilities on our consolidated balance sheets for all periods presented. At March 31, 2016 and December 31, 2015 , we included $0.3 million and $0.5 million , respectively, of deferred securities issuance costs as a reduction to our ABS issued and presented it as ABS issued, net on our consolidated balance sheets and, for both periods, we included $10 million of deferred securities issuance costs as a reduction to our long-term debt and presented it as Long-term debt, net on our consolidated balance sheets. 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. We adopted this guidance, as required, in the first quarter of 2016, which did not have a material impact on our consolidated financial statements. Other Recent Accounting Pronouncements In March 2016, the FASB issued 2016 ASU 2016-09,"Compensation - Stock compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." This new guidance is to simplify the accounting for share-based payment transactions, including related income tax accounting, classification of awards, and classification on the statement of cash flows. This new guidance is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. We plan to adopt this new guidance by the required date and do not believe it will have a material impact to our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02,"Leases." This new guidance requires lessees to recognize most leases on their balance sheet as a right-of-use asset and a lease liability. This new guidance retains a dual lease accounting model, which requires leases to be classified as either operating or capital leases for lessees, for purposes of income statement recognition. This new guidance is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. We plan to adopt this new guidance by the required date and we are currently evaluating the impact that this update will have on our consolidated financial statements. 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 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. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)." This new guidance provides additional implementation guidance on how an entity should identify the unit of accounting for the principal versus agent evaluations. We are currently evaluating the impact these updates will have on our consolidated financial statements. 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 March 31, 2016 and December 31, 2015 . Table 3.1 – 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 March 31, 2016 Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 24,188 $ — $ 24,188 $ (18,926 ) $ (4,581 ) $ 681 TBAs 2,843 — 2,843 (1,339 ) — 1,504 Total Assets $ 27,031 $ — $ 27,031 $ (20,265 ) $ (4,581 ) $ 2,185 Liabilities (2) Interest rate agreements $ (92,100 ) $ — $ (92,100 ) $ 18,926 $ 73,174 $ — TBAs (3,739 ) — (3,739 ) 1,339 1,680 (720 ) Futures (1,324 ) — (1,324 ) — 1,324 — Loan warehouse debt (368,679 ) — (368,679 ) 368,679 — — Security repurchase agreements (435,496 ) — (435,496 ) 435,496 — — Total Liabilities $ (901,338 ) $ — $ (901,338 ) $ 824,440 $ 76,178 $ (720 ) 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 ) (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

Principles of Consolidation	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 , 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 March 31, 2016 Sequoia Entities Commercial Securitization Total (Dollars in Thousands) Residential loans, held-for-investment $ 930,027 $ — $ 930,027 Commercial loans, held-for-investment — 164,626 164,626 Restricted cash 147 136 283 Accrued interest receivable 1,038 1,290 2,328 Other assets 4,884 47 4,931 Total Assets $ 936,096 $ 166,099 $ 1,102,195 Accrued interest payable $ 519 $ 242 $ 761 Asset-backed securities issued 907,023 51,680 958,703 Total Liabilities $ 907,542 $ 51,922 $ 959,464 Number of VIEs 20 1 21 December 31, 2015 Sequoia Entities 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, net 996,820 53,137 1,049,957 Total Liabilities $ 997,475 $ 53,386 $ 1,050,861 Number of VIEs 21 1 22 Analysis of Unconsolidated VIEs with Continuing Involvement Since 2012, we have transferred residential loans to 26 Sequoia securitization entities sponsored by us 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 three months ended March 31, 2016 and 2015 . Table 4.2 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended March 31, (In Thousands) 2016 2015 Principal balance of loans transferred $ — $ 338,796 Trading securities retained, at fair value — 3,423 AFS securities retained, at fair value — 2,859 MSRs recognized — 1,872 The following table summarizes the cash flows during the three months ended March 31, 2016 and 2015 between us and the unconsolidated VIEs sponsored by us. Table 4.3 – Cash Flows Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended March 31, (In Thousands) 2016 2015 Proceeds from new transfers $ — $ 341,716 MSR fees received 3,523 3,770 Funding of compensating interest (79 ) (90 ) Cash flows received on retained securities 11,191 12,645 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 Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 At Date of Securitization MSRs Subordinate Securities MSRs Subordinate Securities Prepayment rate N/A N/A 5 % - 19 % 8 % Discount rates N/A N/A 11 % 6 % Credit loss assumptions N/A N/A N/A 0.25 % The following table presents additional information at March 31, 2016 and December 31, 2015 , related to unconsolidated VIEs sponsored by Redwood and accounted for as sales since 2012. Table 4.5 – Unconsolidated VIEs Sponsored by Redwood (In Thousands) March 31, 2016 December 31, 2015 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 32,434 $ 258,697 Senior and subordinate securities, classified as AFS 274,380 272,715 Mortgage servicing rights 39,220 56,984 Maximum loss exposure (1) $ 346,034 $ 588,396 Assets transferred: Principal balance of loans outstanding $ 7,055,574 $ 7,318,167 Principal balance of delinquent loans 30+ days delinquent 15,235 18,300 (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 March 31, 2016 and December 31, 2015 . Table 4.6 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood March 31, 2016 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at March 31, 2016 $ 39,220 $ 22,177 $ 284,637 Expected life (in years) (2) 4 4 11 Prepayment speed assumption (annual CPR) (2) 21 % 14 % 13 % Decrease in fair value from: 10% adverse change $ 2,423 $ 1,297 $ 969 25% adverse change 5,800 3,039 2,459 Discount rate assumption (2) 11 % 11 % 6 % Decrease in fair value from: 100 basis point increase $ 1,024 $ 650 $ 21,432 200 basis point increase 2,012 1,264 40,189 Credit loss assumption (2) N/A 0.25 % 0.25 % Decrease in fair value from: 10% higher losses N/A $ 15 $ 1,213 25% higher losses N/A 38 3,042 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 (1) Senior securities included $22 million and $31 million of interest only securities as of March 31, 2016 and December 31, 2015 , 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 March 31, 2016 , grouped by security type. Table 4.7 – Third-Party Sponsored VIE Summary (Dollars in Thousands) March 31, 2016 Mortgage Backed Securities Senior $ 146,030 Re-REMIC 162,970 Subordinate 304,113 Total Investments in Third-Party Sponsored VIEs $ 613,113 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 financial statements.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and December 31, 2015 . Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities March 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value (In Thousands) Assets Residential loans, held-for-sale At fair value $ 439,674 $ 439,674 $ 1,114,305 $ 1,114,305 At lower of cost or fair value 1,402 1,594 1,433 1,635 Residential loans, held-for-investment (1) At fair value 3,273,980 3,273,980 2,813,065 2,813,065 Commercial loans, held-for-sale — — 39,141 39,141 Commercial loans, held-for-investment At fair value 69,674 69,674 67,657 67,657 At amortized cost 294,219 301,488 295,849 300,824 Trading securities 221,571 221,571 404,011 404,011 Available-for-sale securities 698,356 698,356 829,245 829,245 MSRs 126,620 126,620 191,976 191,976 Cash and cash equivalents 305,115 305,115 220,229 220,229 Restricted cash 2,137 2,137 5,567 5,567 Accrued interest receivable 19,766 19,766 23,290 23,290 Derivative assets 31,975 31,975 16,393 16,393 REO (2) 4,884 5,475 4,896 5,282 Margin receivable (2) 107,941 107,941 83,191 83,191 FHLBC stock (2) 44,071 44,071 34,437 34,437 Guarantee asset (2) 4,272 4,272 5,697 5,697 Pledged collateral (2) 59,664 59,664 53,600 53,600 Liabilities Short-term debt $ 804,175 $ 804,175 $ 1,855,003 $ 1,855,003 Accrued interest payable 15,522 15,522 8,936 8,936 Margin payable 14,247 14,247 6,415 6,415 Guarantee obligation 24,896 23,595 22,704 22,702 Derivative liabilities 97,468 97,468 62,794 62,794 ABS issued, net (1) (2) Fair value 907,023 907,023 996,820 996,820 Amortized cost 51,341 51,680 52,595 53,137 FHLBC long-term borrowings 1,999,999 1,999,999 1,343,023 1,343,023 Commercial secured borrowings 65,181 65,181 63,152 63,152 Convertible notes, net (2) 479,798 453,396 483,119 461,053 Trust preferred securities and subordinated notes, net (2) 138,454 80,910 138,443 83,700 (1) These assets are included in other assets on our consolidated balance sheets. (2) On January 1, 2016, we adopted ASU 2015-03 and began to present ABS issued, convertible notes, and other long-term debt net of deferred debt issuance costs. See Note 3 for further discussion. During the three months ended March 31, 2016 , we elected the fair value option for $48 million of residential subordinate securities, $1.19 billion of residential loans (principal balance), $38 million of commercial loans (principal balance), and $9 million of MSRs. We anticipate electing the fair value option for all future purchases of residential 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 March 31, 2016 and December 31, 2015 , 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 March 31, 2016 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 3,713,654 $ — $ 1,387 $ 3,712,267 Commercial loans 69,674 — — 69,674 Trading securities 221,571 — — 221,571 Available-for-sale securities 698,356 — — 698,356 Derivative assets 31,975 2,843 24,188 4,944 MSRs 126,620 — — 126,620 Pledged collateral 59,664 59,664 — — FHLBC stock 44,071 — 44,071 — Guarantee asset 4,272 — — 4,272 Liabilities Derivative liabilities $ 97,468 $ 5,063 $ 92,100 $ 305 Commercial secured borrowings 65,181 — — 65,181 ABS issued 907,023 — — 907,023 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 The following table presents additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2016 . 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, 2015 $ 3,797,551 $ 106,798 $ 404,011 $ 829,245 $ 191,976 $ 5,697 $ 3,208 $ 63,152 $ 996,820 Acquisitions 1,020,846 37,626 47,760 15,585 8,807 — — — — Sales (941,790 ) (77,183 ) (220,123 ) (125,911 ) (29,559 ) — — — — Principal paydowns (161,241 ) (171 ) (5,718 ) (16,683 ) — — — (155 ) (49,411 ) Gains (losses) in net income, net (7,934 ) 2,604 (4,359 ) 17,314 (44,604 ) (1,425 ) 15,606 2,171 (33,515 ) Unrealized losses in OCI, net — — — (21,194 ) — — — — — Other settlements, net (2) 4,835 — — — — — (14,175 ) 13 (6,871 ) Ending balance - March 31, 2016 $ 3,712,267 $ 69,674 $ 221,571 $ 698,356 $ 126,620 $ 4,272 $ 4,639 $ 65,181 $ 907,023 (1) For the purpose of this presentation, derivative assets and liabilities, which consist of loan purchase commitments, are presented on a net basis. (2) 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 March 31, 2016 and 2015 . Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the three months ended March 31, 2016 and 2015 are not included in this presentation. Table 5.4 – Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held at March 31, 2016 and 2015 Included in Net Income Included in Net Income Three Months Ended March 31, (In Thousands) 2016 2015 Assets Residential loans at Redwood $ 27,285 $ 5,464 Residential loans at consolidated Sequoia entities (35,656 ) 1,179 Commercial loans 2,171 2,959 Trading securities (6,135 ) (13,790 ) MSRs (30,834 ) (11,769 ) Loan purchase commitments 4,644 7,422 Other assets - Guarantee asset (1,425 ) (1,083 ) Liabilities Commercial secured borrowing 2,171 (1,509 ) ABS issued (33,515 ) (2,946 ) The following table presents information on assets recorded at fair value on a non-recurring basis at March 31, 2016 . 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 consolidated balance sheet at March 31, 2016 . Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis at March 31, 2016 Gain (Loss) for March 31, 2016 Carrying Value Fair Value Measurements Using Three Months Ended (In Thousands) Level 1 Level 2 Level 3 March 31, 2016 Assets Residential loans, at lower of cost or fair value $ 1,076 $ — $ — $ 1,076 $ (16 ) REO 1,285 — — 1,285 (252 ) Liabilities Guarantee obligation $ 928 $ — $ — $ 928 $ — The following table presents the net gains and losses recorded in each line item of our consolidated statements of income for the three months ended March 31, 2016 and 2015 . Table 5.6 – Market Valuation Gains and Losses, Net Three Months Ended March 31, (In Thousands) 2016 2015 Mortgage banking activities, net Residential loans held-for-sale, at fair value $ 5,439 $ 2,056 Residential loan purchase and forward sale commitments 12,635 18,256 Commercial loans, at fair value (1) 433 5,857 Sequoia securities 1,484 (14,359 ) Risk management derivatives, net (12,754 ) (10,583 ) Total mortgage banking activities, net (2) $ 7,237 $ 1,227 Investment fair value changes, net Residential loans held-for-investment at Redwood $ 23,463 $ 1,980 Net investments in consolidated Sequoia entities (1,580 ) (1,093 ) Trading securities (5,601 ) 270 Risk management derivatives, net (35,810 ) (1,374 ) Risk sharing investments (10 ) (928 ) Total investment fair value changes, net $ (19,538 ) $ (1,145 ) MSR income (loss), net MSRs $ (44,604 ) $ (19,517 ) Risk management derivatives, net 41,057 — Total MSR loss, net (3) $ (3,547 ) $ (19,517 ) Total Market Valuation Losses, Net $ (15,848 ) $ (19,435 ) (1) 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. (2) Mortgage banking activities, net presented above does not include fee income or provisions for repurchases that are components of Mortgage banking activities, net presented on our consolidated statements of income, as these amounts do not represent market valuation changes. (3) 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. In addition, we did not specifically identify derivatives used to hedge MSRs in the first quarter of 2015. See Note 2 for additional detail. At March 31, 2016 , our valuation policy and processes had not changed from those described in our Annual Report on Form 10-K for the year ended December 31, 2015 . 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 March 31, 2016 Fair Value Weighted Average (Dollars in Thousands, except Input Values) Unobservable Input Range Assets Residential loans, at fair value: Jumbo fixed rate loans $ 2,494,912 Whole loan spread to TBA price $ 3.13 - $ 4.35 $ 4.12 Jumbo hybrid loans 83,124 Prepayment rate (annual CPR) 15 - 15 % 15 % Spread to swap rate 130 - 180 bps 151 bps Jumbo loans committed to sell 204,204 Committed Sales Price $ 101.91 - $ 102.30 $ 102.14 Loans held by consolidated Sequoia entities (1) 930,027 Liability price N/A N/A Residential loans, at lower of cost or fair value 1,076 Loss severity 15 - 30 % 29 % Commercial loans, at fair value 69,674 Spread to swap rate 212 - 212 bps 212 bps Credit support 25 - 25 % 25 % Trading and AFS securities 919,927 Discount rate 5 - 12 % 6 % Prepayment rate (annual CPR) 1 - 35 % 14 % Default rate — - 35 % 3 % Loss severity 20 - 65 % 23 % Credit support — - 48 % 4 % MSRs 126,620 Discount rate 8 - 13 % 10 % Prepayment rate (annual CPR) 4 - 60 % 15 % Per loan annual cost to service $ 72 - $ 82 $ 78 Guarantee asset 4,272 Discount rate 11 - 11 % 11 % Prepayment rate (annual CPR) 19 - 19 % 19 % REO 1,285 Loss severity 11 - 93 % 35 % Loan purchase commitments, net (2) 4,639 MSR Multiple 0.3 - 6.6 x 2.8 x Fallout rate 2 - 98 % 44 % Whole loan spread to TBA price 3.35 - 4.35 4.16 Prepayment rate (annual CPR) 15 - 15 % 15 % Spread to swap rate 130 - 180 bps 154 bps Liabilities ABS issued 907,023 Discount rate 5 - 9 % 5 % Prepayment rate (annual CPR) 5 - 20 % 12 % Default rate 1 - 12 % 7 % Loss severity 20 - 32 % 27 % Credit support — - 33 % 9 % Commercial secured borrowings 65,181 Spread to swap rate 212 - 212 bps 212 bps Credit support 25 % - 25 % 25 % (1) The fair value of the loans held by consolidated Sequoia entities was based on the fair value of the ABS issued by these entities, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities. (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 residential mortgage-backed securities ("RMBS") and indexed swap rates for subordinate RMBS (Level 3). Pricing inputs obtained from market whole loan transaction activity include indicative spreads to indexed to be announced ("TBA") prices for fixed-rate loans and indexed swap rates for hybrid loans (Level 3). Other observable inputs include benchmark interest rates, and prepayment rates. At March 31, 2016 , 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 generally 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 March 31, 2016 , we received dealer price indications on 68% of our securities, representing 84% 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. Fair values of TBAs and financial futures 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 mortgage-backed securities ("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 would generally 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 FHLB-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 would generally 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 obligations 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	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and December 31, 2015 . Table 6.1 – Classifications and Carrying Values of the Residential Loans March 31, 2016 (In Thousands) Redwood Sequoia Total Held-for-sale Fair value - conforming $ 1,387 $ — $ 1,387 Fair value - jumbo 438,287 — 438,287 Lower of cost or fair value - jumbo 1,402 — 1,402 Total held-for-sale 441,076 — 441,076 Held-for-investment Fair value - jumbo 2,343,953 930,027 3,273,980 Total Residential Loans $ 2,785,029 $ 930,027 $ 3,715,056 December 31, 2015 (In Thousands) Redwood Sequoia 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 At March 31, 2016 , we owned mortgage servicing rights associated with $1.88 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 consolidated balance sheet. We contract with licensed sub-servicers that perform servicing functions for these loans. Residential Loans Held-for-Sale At Fair Value At March 31, 2016 , we owned 588 loans held-for-sale at fair value with an aggregate unpaid principal balance of $429 million and a fair value of $440 million , compared to 1,763 loans with an aggregate unpaid principal balance of $1.09 billion and a fair value of $1.11 billion at December 31, 2015 . At March 31, 2016 , none of these loans were greater than 90 days delinquent or in foreclosure. At December 31, 2015 , two of these loans were greater than 90 days delinquent and one of these loans was in foreclosure. During the three months ended March 31, 2016 and 2015 , we purchased $1.19 billion and $2.40 billion (principal balance) of loans, respectively, for which we elected the fair value option, and we sold $1.24 billion and $2.20 billion (principal balance) of loans, respectively, for which we recorded net market valuation gains of $5 million and $2 million , respectively, through Mortgage banking activities, net, a component of our consolidated statements of income. At March 31, 2016 , loans held-for-sale with a market value of $414 million were pledged as collateral under short-term borrowing agreements. At Lower of Cost or Fair Value At March 31, 2016 and December 31, 2015 , we held nine residential loans at the lower of cost or fair value with $2 million in outstanding principal balance and a carrying value of $1 million for both periods. At both March 31, 2016 and December 31, 2015 , two of these loans were greater than 90 days delinquent and one of these loans was in foreclosure. Residential Loans Held-for-Investment at Fair Value At Redwood At March 31, 2016 , we owned 3,096 held-for-investment loans at Redwood with an aggregate unpaid principal balance of $2.28 billion and a fair value of $2.34 billion , compared to 2,398 loans with an aggregate unpaid principal balance of $1.76 billion and a fair value of $1.79 billion at December 31, 2015 . At both March 31, 2016 and December 31, 2015 , none of these loans were greater than 90 days delinquent or in foreclosure. During the three months ended March 31, 2016 and 2015 , we transferred loans with a fair value of $660 million and $448 million , respectively, from held-for-sale to held-for-investment. During the three months ended March 31, 2016 , we transferred loans with a fair value of $54 million from held-for-investments to held-for-sale. We did not transfer loans from held-for-investment to held-for-sale during the three months ended March 31, 2015 . During the three months ended March 31, 2016 and 2015 , we recorded net market valuation gains of $23 million and $2 million , respectively, on residential loans held-for-investment at fair value through Investment fair value changes, net, a component of our consolidated statements of income. At March 31, 2016 , $2.34 billion of these loans were pledged as collateral under a borrowing agreement with the FHLBC. The outstanding loans held-for-investment at Redwood at March 31, 2016 were prime-quality, first lien loans, of which 93% were originated between 2013 and 2016, and 7% 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 66% (at origination). At March 31, 2016 , these loans were comprised of 99% fixed-rate loans with a weighted average coupon of 4.16% , and the remainder were hybrid or ARM loans with a weighted average coupon of 4.00% . At Consolidated Sequoia Entities At March 31, 2016 , we owned 4,221 held-for-investment loans at consolidated Sequoia entities, with an aggregate unpaid principal balance of $1.06 billion and a fair value of $930 million , as compared to 4,545 loans at December 31, 2015 , with an aggregate unpaid principal balance of $1.12 billion and a fair value of $1.02 billion . 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 March 31, 2016 and December 31, 2015 , the unpaid principal balance of loans at consolidated Sequoia entities delinquent greater than 90 days was $51 million and $59 million , respectively, and the unpaid principal balance of loans in foreclosure was $26 million and $32 million , respectively. During the three months ended March 31, 2016 and 2015 , we recorded net market valuation losses of $36 million and net market valuation gains of $3 million , respectively, on these loans through Investment fair value changes, net on our consolidated statements of income.

Commercial Loans

Commercial Loans	3 Months Ended
	Mar. 31, 2016
Commercial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	Commercial Loans We invest in commercial loans that we historically originated or acquired. In February 2016, we discontinued commercial loan originations. The following table summarizes the classifications and carrying value of commercial loans at March 31, 2016 and December 31, 2015 . Table 7.1 – Classifications and Carrying Value of Commercial Loans (In Thousands) March 31, 2016 December 31, 2015 Held-for-sale, at fair value $ — $ 39,141 Held-for-investment At fair value 69,674 67,657 At amortized cost 294,219 295,849 Total Commercial Loans $ 363,893 $ 402,647 Of the held-for-investment commercial loans at amortized cost shown above at March 31, 2016 and December 31, 2015 , $165 million and $166 million , respectively, were financed through the Commercial Securitization entity, and $7 million and $135 million , respectively, 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 originated with the intent to sell to third parties. At March 31, 2016 , we did not hold any senior commercial mortgage loans. As of December 31, 2015 , there were 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 . During the three months ended March 31, 2016 and 2015 , we acquired $38 million and $93 million (principal balance), respectively, of senior commercial loans for which we elected the fair value option and sold $76 million and $203 million (principal balance), respectively, of loans to third parties. During the three months ended March 31, 2016 and 2015 , we recorded $0.4 million and $6 million , respectively, of net market valuation gains on senior commercial mortgage loans for which we elected the fair value option through Mortgage banking activities, net on our consolidated statements of income. 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 March 31, 2016 and December 31, 2015 , we held three of these A/B notes with an aggregate outstanding principal balance of $67 million and $67 million , respectively, and an aggregate fair value of $70 million and $68 million , respectively. 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 completely offset through our consolidated statements of income. During the three months ended March 31, 2016 and 2015 , 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 March 31, 2016 and December 31, 2015 was $4 million and $5 million , respectively. At Amortized Cost Commercial loans held-for-investment primarily include mezzanine loans that are secured by a borrower’s ownership interest in a single purpose entity that owns commercial property. The following table provides additional information for our commercial loans held-for-investment at amortized cost at March 31, 2016 and December 31, 2015 . Table 7.2 – Carrying Value for Commercial Loans Held-for-Investment at Amortized Cost (In Thousands) March 31, 2016 December 31, 2015 Principal balance $ 305,517 $ 307,047 Unamortized discount, net (3,908 ) (4,096 ) Recorded investment 301,609 302,951 Allowance for loan losses (7,390 ) (7,102 ) Carrying Value $ 294,219 $ 295,849 At March 31, 2016 and December 31, 2015 , we held 58 and 59 , respectively, commercial loans held-for-investment at amortized cost. Of the $302 million of recorded investment in commercial loans held-for-investment at March 31, 2016 , 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) March 31, 2016 December 31, 2015 Pass $ 260,599 $ 272,768 Watch list 44,918 34,279 Total Commercial Loans Held-for-Investment $ 305,517 $ 307,047 The following table summarizes the activity in the allowance for commercial loan losses for the three months ended March 31, 2016 and 2015 . Table 7.4 – Activity in the Allowance for Commercial Loan Losses Three Months Ended March 31, (In Thousands) 2016 2015 Balance at beginning of period $ 7,102 $ 7,457 Provision for loan losses 288 205 Balance at End of Period $ 7,390 $ 7,662 At March 31, 2016 and December 31, 2015 , all of our commercial loans collectively evaluated for impairment were current. We did not have any commercial loans individually evaluated for impairment at either March 31, 2016 or December 31, 2015 . The following table summarizes the balances for loans collectively evaluated for impairment at March 31, 2016 and December 31, 2015 . Table 7.5 – Loans Collectively Evaluated for Impairment Review (In Thousands) March 31, 2016 December 31, 2015 Principal balance $ 305,517 $ 307,047 Recorded investment 301,609 302,951 Related allowance 7,390 7,102

Real Estate Securities

Real Estate Securities	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Real Estate Securities	Real Estate Securities We invest in real estate securities. The following table presents the fair values of our real estate securities by type at March 31, 2016 and December 31, 2015 . Table 8.1 – Fair Values of Real Estate Securities by Type (In Thousands) March 31, 2016 December 31, 2015 Trading $ 221,571 $ 404,011 Available-for-sale 698,356 829,245 Total Real Estate Securities $ 919,927 $ 1,233,256 Our real estate securities include RMBS and CMBS, which 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. In addition, our real estate securities include investments in Agency residential mortgage credit risk transfer (or "CRT") securities, which are presented as subordinate securities. Trading Securities The following table presents the fair value of trading securities by collateral type at March 31, 2016 and December 31, 2015 . Table 8.2 – Trading Securities by Collateral Type (In Thousands) March 31, 2016 December 31, 2015 Senior Securities Prime $ 22,177 $ 248,570 Non-prime 5,414 5,781 Total Senior Securities 27,591 254,351 Subordinate Securities Prime mezzanine (1) 144,317 136,140 Prime subordinate (2) 49,663 13,520 Total Subordinate Securities (3) 193,980 149,660 Total Trading Securities $ 221,571 $ 404,011 (1) Mezzanine includes securities initially rated AA through BBB- and issued in 2012 or later. (2) Subordinate securities includes less than $1 million of non-prime securities at both March 31, 2016 , and December 31, 2015 . (3) At March 31, 2016 , and December 31, 2015 , subordinate securities included $62 million and $25 million , respectively, of CRT securities. We elected the fair value option for certain securities and classify them as trading securities. At March 31, 2016 and December 31, 2015 , our senior trading securities included $28 million and $37 million , respectively, of interest-only securities, for which there is no principal balance, and the remaining unpaid principal balance of our senior trading securities was zero and $217 million , respectively, and the unpaid principal balance of our subordinate trading securities was $212 million and $168 million , respectively. During the three months ended March 31, 2016 and 2015 , we acquired $50 million and $23 million (principal balance), respectively, of senior and subordinate securities for which we elected the fair value option and classified as trading, and sold $218 million and $3 million , respectively, of such securities. During the three months ended March 31, 2016 and 2015 , we recorded net market valuation losses of $4 million and $14 million , respectively, on trading securities, included in Investment fair value changes, net and Mortgage banking activities, net on our consolidated statements of income. As of March 31, 2016 , trading securities with a carrying value of $142 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 March 31, 2016 and December 31, 2015 . Table 8.3 – Available-for-Sale Securities by Collateral Type (In Thousands) March 31, 2016 December 31, 2015 Senior Securities Prime $ 111,523 $ 210,993 Non-prime 29,093 68,258 Total Senior Securities 140,616 279,251 Re-REMIC Securities 162,970 165,064 Subordinate Securities Prime mezzanine (1) 225,787 224,624 Prime subordinate (2) 168,983 160,306 Total Subordinate Securities 394,770 384,930 Total AFS Securities $ 698,356 $ 829,245 (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 March 31, 2016 , and December 31, 2015 . As of March 31, 2016 , AFS securities with a carrying value of $389 million were pledged as collateral under short-term borrowing agreements. See Note 12 for additional information on short-term debt. During the three months ended March 31, 2016 and 2015 , we purchased $16 million and $10 million of AFS securities, respectively, and sold $126 million and $91 million of AFS securities, respectively, which resulted in net realized gains of $9 million and $4 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 March 31, 2016 , there were $2 million of AFS securities with contractual maturities less than five years , none 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 March 31, 2016 and December 31, 2015 . Table 8.4 – Carrying Value of AFS Securities March 31, 2016 Senior (In Thousands) Prime Non-prime Re-REMIC Subordinate Total Principal balance $ 120,577 $ 31,781 $ 189,146 $ 504,228 $ 845,732 Credit reserve (1,108 ) (687 ) (11,258 ) (35,494 ) (48,547 ) Unamortized discount, net (13,491 ) (3,262 ) (66,586 ) (136,291 ) (219,630 ) Amortized cost 105,978 27,832 111,302 332,443 577,555 Gross unrealized gains 9,326 1,482 51,668 64,538 127,014 Gross unrealized losses (3,781 ) (221 ) — (2,211 ) (6,213 ) Carrying Value $ 111,523 $ 29,093 $ 162,970 $ 394,770 $ 698,356 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 The following table presents the changes for the three months ended March 31, 2016 , 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 Three Months Ended March 31, 2016 Credit Unamortized (In Thousands) Beginning balance $ 48,869 $ 237,107 Amortization of net discount — (8,068 ) Realized credit losses (1,955 ) — Acquisitions 4,383 5,110 Sales, calls, other (4,252 ) (13,017 ) Transfers to (release of) credit reserves, net 1,502 (1,502 ) Ending Balance $ 48,547 $ 219,630 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 March 31, 2016 and December 31, 2015 . Table 8.6 – Components of Fair Value of Residential AFS Securities by Holding Periods Less Than 12 Consecutive Months 12 Consecutive Months or Longer Amortized Cost Unrealized Losses Fair Value Amortized Cost Unrealized Losses Fair (In Thousands) March 31, 2016 $ 39,132 $ (1,350 ) $ 37,782 $ 76,241 $ (4,863 ) $ 71,378 December 31, 2015 87,718 (1,972 ) 85,746 77,539 (3,035 ) 74,504 At March 31, 2016 , after giving effect to purchases, sales, and extinguishment due to credit losses, our consolidated balance sheet included 199 AFS securities, of which 28 were in an unrealized loss position and 13 were in a continuous unrealized loss position for 12 consecutive months or longer. At December 31, 2015 , 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. Evaluating AFS Securities for Other-than-Temporary Impairments Gross unrealized losses on our AFS securities were $6 million at March 31, 2016 . 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 March 31, 2016 , 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 three months ended March 31, 2016 , we recognized no 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 March 31, 2016 . Table 8.7 – Significant Valuation Assumptions Range for Securities March 31, 2016 Prime Non-prime Prepayment rates 10 - 20 % 12 - 15 % Projected losses 0 - 9 % 5 % 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 March 31, 2016 and 2015 , 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 Three Months Ended March 31, (In Thousands) 2016 2015 Balance at beginning of period $ 28,277 $ 33,849 Reductions Securities sold, or expected to sell (226 ) (95 ) Securities with no outstanding principal at period end (109 ) (805 ) Balance at End of Period $ 27,942 $ 32,949 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 three months ended March 31, 2016 and 2015 . Table 8.9 – Gross Realized Gains and Losses on AFS Securities Three Months Ended March 31, (In Thousands) 2016 2015 Gross realized gains - sales $ 11,419 $ 4,306 Gross realized losses - sales (2,173 ) — Total Realized Gains on Sales and Calls of AFS Securities, net $ 9,246 $ 4,306

Mortgage Servicing Rights

Mortgage Servicing Rights	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and December 31, 2015 . Table 9.1 – Fair Value of MSRs and Aggregate Principal Amounts of Associated Loans March 31, 2016 December 31, 2015 (In Thousands) MSR Fair Value Associated Principal MSR Fair Value Associated Principal Mortgage Servicing Rights Conforming Loans $ 86,591 $ 9,344,652 $ 133,838 $ 12,560,533 Jumbo Loans 40,029 5,479,353 58,138 5,705,939 Total Mortgage Servicing Rights $ 126,620 $ 14,824,005 $ 191,976 $ 18,266,472 The following table presents activity for MSRs for the three months ended March 31, 2016 and 2015 . Table 9.2 – Activity for MSRs Three Months Ended March 31, (In Thousands) 2016 2015 Balance at beginning of period $ 191,976 $ 139,293 Additions 8,807 18,754 Sales (29,559 ) (18,206 ) Changes in fair value due to: Changes in assumptions (1) (38,328 ) (14,036 ) Other changes (2) (6,276 ) (5,481 ) Balance at End of Period $ 126,620 $ 120,324 (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 our taxable REIT subsidiary. The following table details the retention and purchase of MSRs during the three months ended March 31, 2016 . Table 9.3 – MSR Additions (In Thousands) Three Months Ended March 31, 2016 MSR Fair Value Associated Principal Jumbo MSR additions: From loan sales $ 46 $ 6,519 Total jumbo MSR additions 46 6,519 Conforming MSR additions: From loan sales $ 3,364 $ 314,518 From purchases 5,397 549,034 Total conforming MSR additions 8,761 863,552 Total MSR Additions $ 8,807 $ 870,071 The following table presents the components of our MSR income. Table 9.4 – Components of MSR Income (Loss), net Three Months Ended March 31, (In Thousands) 2016 2015 Servicing income Income $ 11,684 $ 9,716 Cost of sub-servicer (2,038 ) (1,229 ) Net servicing income 9,646 8,487 Market valuation changes of MSRs (44,604 ) (19,517 ) Market valuation changes of associated derivatives (1) 41,057 — MSR provision for repurchases 182 106 MSR Income (Loss), Net $ 6,281 $ (10,924 ) (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	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and December 31, 2015 . Table 10.1 – Fair Value and Notional Amount of Derivative Financial Instruments March 31, 2016 December 31, 2015 Fair Value Notional Amount Fair Value Notional Amount (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 8,647 $ 525,000 $ 2,590 $ 658,000 TBAs 2,843 569,500 2,734 1,028,500 Swaptions 15,541 570,000 5,191 925,000 Credit default index swaps — — 1,207 25,000 Assets - Other Derivatives Loan purchase commitments 4,944 867,816 4,671 764,161 Total Assets $ 31,975 $ 2,532,316 $ 16,393 $ 3,400,661 Liabilities - Cash Flow Hedges Interest rate swaps $ (62,407 ) $ 139,500 $ (48,232 ) $ 139,500 Liabilities - Risk Management Derivatives Interest rate swaps (29,693 ) 968,500 (10,134 ) 1,039,500 TBAs (3,739 ) 581,000 (2,519 ) 1,450,500 Futures (1,324 ) 150,000 (445 ) 78,000 Liabilities - Other Derivatives Loan purchase commitments (305 ) 263,769 (1,464 ) 375,815 Total Liabilities $ (97,468 ) $ 2,102,769 $ (62,794 ) $ 3,083,315 Total Derivative Financial Instruments, Net $ (65,493 ) $ 4,635,085 $ (46,401 ) $ 6,483,976 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 March 31, 2016 , we were party to swaps and swaptions with an aggregate notional amount of $2.06 billion , TBA contracts sold with an aggregate notional amount of $1.15 billion , and financial futures contracts with an aggregate notional amount of $150 million . 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 . During the three months ended March 31, 2016 and 2015 , we recorded net market valuation losses of $8 million and $12 million , respectively. These market valuation gains and losses are recorded in Mortgage banking activities, net, Investment fair value changes, 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 market valuation gains on LPCs and FSCs were $13 million and $18 million for the three months ended March 31, 2016 and 2015 , respectively, and are recorded in Mortgage banking 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 and certain adjustable-rate securitization entity liabilities that are included in our consolidated balance sheets for financial reporting purposes, we designated certain interest rate swaps as cash flow hedges with an aggregate notional balance of $140 million . For the three months ended March 31, 2016 and 2015 , net market valuation losses on interest rate agreements were $14 million and $8 million , respectively, and were recorded in Accumulated other comprehensive income, a component of equity. For interest rate agreements currently or previously designated as cash flow hedges, our total unrealized loss reported in Accumulated other comprehensive income was $62 million and $47 million at March 31, 2016 and December 31, 2015 , respectively. The following table illustrates the impact on interest expense of our interest rate agreements accounted for as cash flow hedges for the three months ended March 31, 2016 and 2015 . Table 10.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Three Months Ended March 31, (In Thousands) 2016 2015 Net interest expense on cash flows hedges $ (1,387 ) $ (1,484 ) Realized net losses reclassified from other comprehensive income (18 ) (31 ) Total Interest Expense $ (1,405 ) $ (1,515 ) Derivative Counterparty Credit Risk As discussed in our Annual Report on Form 10-K for the year ended December 31, 2015 , we consider counterparty risk as part of our fair value assessments of all derivative financial instruments at each quarter-end. At March 31, 2016 , we assessed this risk as remote and did not record a specific valuation adjustment. At March 31, 2016 , we had outstanding derivative agreements with four counterparties (other than clearinghouses) and were in compliance with ISDA agreements governing our open derivative positions.

Other Assets and Liabilities

Other Assets and Liabilities	3 Months Ended
	Mar. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets and Liabilities	Other Assets and Liabilities Other assets at March 31, 2016 and December 31, 2015 , are summarized in the following table. Table 11.1 – Components of Other Assets (In Thousands) March 31, 2016 December 31, 2015 Margin receivable $ 107,941 $ 83,191 Pledged collateral 59,664 53,600 FHLBC stock 44,071 34,437 Investment receivable 7,772 3,870 Guarantee asset 4,272 5,697 REO 4,884 4,896 Fixed assets and leasehold improvements (1) 3,608 4,117 Prepaid expenses 2,183 3,640 Other 7,996 4,438 Total Other Assets $ 242,391 $ 197,886 (1) Fixed assets and leasehold improvements have a basis of $6 million and accumulated depreciation of $2 million at March 31, 2016 . Accrued expenses and other liabilities at March 31, 2016 and December 31, 2015 are summarized in the following table. Table 11.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) March 31, 2016 December 31, 2015 Guarantee obligations $ 24,896 $ 22,704 Unsettled trades 15,014 29 Margin payable 14,247 6,415 Residential loan and MSR repurchase reserve 6,693 6,403 Accrued compensation 6,476 17,527 Restructuring liabilities 5,245 — Legal reserve 2,000 2,000 Accrued operating expenses 1,621 1,845 Current accounts payable 1,038 4,764 Other 4,939 8,210 Total Other Liabilities $ 82,169 $ 69,897 Margin Receivable and Payable Margin receivable and payable resulted from margin calls between us and our counterparties under derivatives, master repurchase agreements, and warehouse facilities, whereby we or the counterparty posted collateral. Guarantee Asset, Pledged Collateral, and Guarantee Obligations The pledged collateral, guarantee asset, and guarantee obligations presented in the tables above are related to our risk sharing arrangements with Fannie Mae and Freddie Mac. In accordance with these arrangements, we are required to pledge collateral to secure our guarantee obligations. At March 31, 2016 , we were over-collateralized by approximately $16 million and expect to receive this collateral back from the custodian in the second quarter of 2016. See 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 March 31, 2016 , was $5 million , which includes the net effect of $2 million related to transfers into REO during the three months ended March 31, 2016 , offset by $3 million of REO liquidations, and $1 million of unrealized gains resulting from market valuation adjustments. At March 31, 2016 and December 31, 2015 , there were 20 and 23 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. Restructuring Accruals In January 2016, we announced plans to restructure certain aspects of our residential mortgage loan operations by discontinuing the acquisition and aggregation of conforming loans for resale to the Agencies. Additionally, in February 2016, we announced our plans to restructure our commercial business and discontinue commercial loan originations. Finally, in March 2016, we announced the departure of our President effective July 1, 2016. We currently expect to substantially complete these restructuring activities during the second quarter of 2016. In connection with these activities, we incurred restructuring expenses, including one-time termination benefits, contract termination costs, and other associated costs. During the first quarter of 2016, we established a restructuring liability and recorded restructuring charges totaling $11 million in Operating expenses on our consolidated statements of income, which included $9 million of severance related charges (including $3 million of equity compensation expense) and $2 million of contract termination costs. For segment reporting, we consider these restructuring charges as corporate charges and included them in the “corporate/other” reconciling column in our business segment financial information tables in Note 22, Segment Information . The following table presents our restructuring activities and the associated liabilities during the three months ended March 31, 2016 . Table 11.3 – Activities of Restructuring Liabilities Three Months Ended March 31, 2016 (In Thousands) Termination Benefits Contract Termination Costs Total Restructuring Liabilities Beginning balance $ — $ — $ — Costs incurred and expensed 8,738 1,921 10,659 Costs paid/settled (1,326 ) (602 ) (1,928 ) Adjustments (1) (3,486 ) — (3,486 ) Ending Balance $ 3,926 $ 1,319 $ 5,245 (1) Amount represents equity compensation expense recorded during the three months ended March 31, 2016 related to equity awards that were accelerated, and will be distributed in future periods.

Short-Term Debt

Short-Term Debt	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 , we had outstanding agreements with several counterparties and we were in compliance with all of the related covenants. Further information about these financial covenants is set forth in Part I, Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations of this Quarterly Report on Form 10-Q and in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2015 . 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 March 31, 2016 and December 31, 2015 . Table 12.1 – Short-Term Debt Facilities March 31, 2016 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate Maturity Weighted Average Days Until Maturity Residential loan warehouse 4 $ 368,679 $ 1,400,000 1.97 % 6/2016-2/2017 240 Commercial loan warehouse 2 — 300,000 N/A 4/2016-10/2016 N/A Real estate securities repo 9 435,496 — 1.77 % 4/2016-6/2016 29 Total 15 $ 804,175 December 31, 2015 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate Maturity Weighted Average Days Until Maturity Residential loan warehouse 4 $ 950,022 $ 1,400,000 1.90 % 2/2016-12/2016 182 FHLBC (1) 1 137,622 — 0.21 % 7/2016-11/2016 204 Commercial loan warehouse 2 73,718 300,000 4.13 % 4/2016-10/2016 265 Real estate securities repo 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 at December 31, 2015 . See Note 14 for additional information on our FHLB-member subsidiary's borrowing agreement with the FHLBC. Borrowings under these facilities are generally charged interest based on a specified margin over the one-month LIBOR interest rate. At March 31, 2016 , 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 $414 million , $7 million , and $531 million , respectively, at March 31, 2016 and $1.07 billion , $152 million , and $827 million , respectively, at December 31, 2015 . For the three months ended March 31, 2016 and 2015 , the average balance of short-term debt was $1.28 billion and $1.59 billion , respectively. At March 31, 2016 and December 31, 2015 , accrued interest payable on short-term debt was $3 million and $2 million , respectively. 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 $10 million at March 31, 2016 . At both March 31, 2016 and December 31, 2015 , we had no outstanding borrowings on this facility. Remaining Maturities of Short-Term Debt The following table presents the remaining maturities of short-term debt by the type of collateral securing the debt at March 31, 2016 . Table 12.2 – Short-Term Debt by Collateral Type and Remaining Maturities March 31, 2016 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for-sale residential loans $ — $ 64,571 $ 304,108 $ 368,679 Commercial loans (1) 4,337 — — 4,337 Real estate securities 309,112 122,047 — 431,159 Total Short-Term Debt $ 313,449 $ 186,618 $ 304,108 $ 804,175 (1) One commercial loan serves as collateral under a securities repo facility.

Asset-Backed Securities Issued

Asset-Backed Securities Issued	3 Months Ended
	Mar. 31, 2016
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, manager, 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 March 31, 2016 and December 31, 2015 , along with other selected information, are summarized in the following table. Table 13.1 – Asset-Backed Securities Issued March 31, 2016 December 31, 2015 (Dollars in Thousands) Sequoia Commercial Securitization Total Sequoia Commercial Securitization Total Certificates with principal balance $ 1,044,364 $ 51,680 $ 1,096,044 $ 1,108,785 $ 53,137 $ 1,161,922 Interest-only certificates 4,598 — 4,598 4,672 — 4,672 Market valuation adjustments (141,939 ) — (141,939 ) (116,637 ) — (116,637 ) Total ABS Issued 907,023 51,680 958,703 996,820 53,137 1,049,957 Deferred debt issuance costs — (339 ) (339 ) — (542 ) (542 ) ABS issued, net (1) $ 907,023 $ 51,341 $ 958,364 $ 996,820 $ 52,595 $ 1,049,415 Range of weighted average interest rates, by series 0.64% to 1.87% 5.62 % 0.41% to 2.21% 5.62 % Stated maturities 2024 - 2037 2018 2017 - 2037 2018 Number of series 20 1 21 1 (1) Upon adoption of ASU 2015-03 on January 1, 2016, we began to present ABS issued, net of deferred debt issuance costs. See Note 3 for further discussion. 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 March 31, 2016 , $907 million of ABS issued ( $1.04 billion principal balance) had contractual maturities after five years . The following table summarizes the accrued interest payable on ABS issued at March 31, 2016 and December 31, 2015 . Interest due on consolidated ABS issued is payable monthly. Table 13.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) March 31, 2016 December 31, 2015 Sequoia $ 519 $ 555 Commercial Securitization 242 249 Total Accrued Interest Payable on ABS Issued $ 761 $ 804 The following table summarizes the carrying value components of the collateral for ABS issued and outstanding at March 31, 2016 and December 31, 2015 . Table 13.3 – Collateral for Asset-Backed Securities Issued March 31, 2016 December 31, 2015 (In Thousands) Sequoia Commercial Securitization Total Sequoia Commercial Securitization Total Residential loans $ 930,027 $ — $ 930,027 $ 1,021,870 $ — $ 1,021,870 Commercial loans — 164,626 164,626 — 166,016 166,016 Restricted cash 147 136 283 228 137 365 Accrued interest receivable 1,038 1,290 2,328 1,131 1,297 2,428 REO 4,884 47 4,931 4,895 — 4,895 Total Collateral for ABS Issued $ 936,096 $ 166,099 $ 1,102,195 $ 1,028,124 $ 167,450 $ 1,195,574

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2016
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. At March 31, 2016 , 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 residential mortgage loans. During the three months ended March 31, 2016 , our FHLB-member subsidiary borrowed an additional $519 million under this agreement. Under a final rule published by the Federal Housing Finance Agency in January 2016, our FHLB-member subsidiary will remain an FHLB member through the five -year transition period for captive insurance companies. Our FHLB-member subsidiary's existing $2.00 billion of FHLB debt, which matures beyond this transition period, is permitted to remain outstanding until stated maturity. As residential loans pledged as collateral for this debt pay down, we are permitted to pledge additional loans or other eligible assets to collateralize this debt; however, we do not expect to be able to increase our subsidiary's FHLB debt above the existing $2.00 billion maximum. At March 31, 2016 , $2.00 billion of advances were outstanding under this agreement, which were classified as long-term debt, with a weighted average interest rate of 0.58% and a weighted average maturity of approximately nine years. 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. 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 $2.34 billion at March 31, 2016 . 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 March 31, 2016 , our subsidiary held $44 million of FHLBC stock that is included in Other assets in our consolidated balance sheets. The following table presents maturities of our FHLBC borrowings by year at March 31, 2016 . Table 14.1 – Maturities of FHLBC Borrowings by Year (In Thousands) March 31, 2016 2024 $ 470,171 2025 887,639 2026 642,189 Total FHLBC Borrowings $ 1,999,999 For additional discussion of our FHLBC borrowings, see Part I, Item 2 of Quarterly Report on Form 10-Q under the heading “ Risks Relating to Debt Incurred under Short- and Long-Term Borrowing Facilities. ” Commercial Secured Borrowings At March 31, 2016 , we had commercial secured borrowings of $65 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 consolidated 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 6.54% and 6.52% , respectively, for the three months ended March 31, 2016 and 2015 . At March 31, 2016 , 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. During the three months ended March 31, 2016 , we repurchased $4 million par value of these notes at a discount and recorded $0.3 million of gains on extinguishment of debt in Realized gains, net on our consolidated statements of income. At March 31, 2016 , the outstanding principal amount of these notes was $201 million . At March 31, 2016 , the accrued interest payable balance on this debt was $4 million and the unamortized deferred issuance costs were $5 million . 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 5.41% and 5.36% , respectively, for the three months ended March 31, 2016 and 2015 . At March 31, 2016 , the accrued interest payable balance on this debt was $7 million and the unamortized deferred issuance costs were $4 million . At March 31, 2016 , 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 March 31, 2016 , 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 2.85% and 2.52% for the three months ended March 31, 2016 and 2015 , 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 6.86% and 6.81% for the three months ended March 31, 2016 and 2015 , respectively. At both March 31, 2016 and December 31, 2015 , the accrued interest payable balance on our trust preferred securities and subordinated notes was $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	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Commitments At March 31, 2016 , we were obligated under seven non-cancelable operating leases with expiration dates through 2021 for $10 million of cumulative lease payments. Operating lease expense was $1 million for both three -month periods ended March 31, 2016 and 2015 . The following table presents our future lease commitments at March 31, 2016 . Table 15.1 – Future Lease Commitments by Year (In Thousands) March 31, 2016 2016 (9 months) $ 2,149 2017 2,880 2018 1,827 2019 1,189 2020 1,127 2021 and thereafter 367 Total Lease Commitments $ 9,539 Loss Contingencies — Risk Sharing At March 31, 2016 , we had sold conforming loans to the Agencies with an original unpaid principal balance of $3.19 billion , subject to our risk sharing arrangements with the Agencies. At March 31, 2016 , the maximum potential amount of future payments we could be required to make under these arrangements was $44 million and this amount was fully collateralized by assets we transferred to pledged 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. At March 31, 2016 , we had not incurred any losses under these arrangements. For each of the three months ended March 31, 2016 and 2015 , other income related to these arrangements was $1 million , and net market valuation losses related to these investments were zero and $1 million , respectively, for the three months ended March 31, 2016 and 2015 . All of the loans in the reference pools subject to these risk sharing arrangements were originated in 2014 and 2015, and at March 31, 2016 , the loans had an unpaid principal balance of $2.93 billion and a weighted average FICO score of 758 (at origination) and LTV of 76% (at origination). At March 31, 2016 , $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. Our consolidated balance sheets include assets of 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 for which the creditors of these SPEs (the Agencies) do not have recourse to Redwood Trust, Inc. or its affiliates. At March 31, 2016 and December 31, 2015 , assets of such SPEs totaled $66 million and $63 million , respectively, and liabilities of such SPEs totaled $25 million and $25 million , respectively. 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 March 31, 2016 and December 31, 2015 , our repurchase reserve associated with our residential loans and MSRs was $7 million and $6 million , respectively, and was recorded in Accrued expenses and other liabilities on our consolidated balance sheets. We received 27 and 25 repurchase requests during the three months ended March 31, 2016 and 2015 , respectively. We did not repurchase any loans during the three months ended March 31, 2016 . During the three months ended March 31, 2016 and 2015 , we recorded repurchase provisions of $0.3 million and $1 million , respectively, that were recorded in Mortgage banking 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 March 31, 2016 , the FHLB-Seattle has received approximately $121 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. At the time the Settle Certificate was issued, 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 March 31, 2016 , approximately $13 million of principal and $1 million of interest payments have been made in respect of the Schwab Certificate. At the time the Schwab Certificate was issued, Redwood 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 March 31, 2016 , 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	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Equity	Equity The following table provides a summary of changes to accumulated other comprehensive income by component for the three months ended March 31, 2016 and 2015 . Table 16.1 – Changes in Accumulated Other Comprehensive Income by Component Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 (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 $ 139,356 $ (47,363 ) $ 186,737 $ (46,049 ) Other comprehensive income (loss) (10,103 ) (14,243 ) 5,053 (8,442 ) Amounts reclassified from other (10,953 ) 18 (1,690 ) 31 Net current-period other comprehensive income (loss) (21,056 ) (14,225 ) 3,363 (8,411 ) Balance at End of Period $ 118,300 $ (61,588 ) $ 190,100 $ (54,460 ) The following table provides a summary of reclassifications out of accumulated other comprehensive income for three months ended March 31, 2016 and 2015 . Table 16.2 – Reclassifications Out of Accumulated Other Comprehensive Income Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Three Months Ended March 31, (In Thousands) Income Statement 2016 2015 Net realized (gain) loss on AFS securities Gain on sale of AFS securities Realized gains, net (10,953 ) (1,690 ) $ (10,953 ) $ (1,690 ) Net realized loss on interest rate Amortization of deferred loss Interest expense $ 18 $ 31 $ 18 $ 31 Earnings Per Common Share The following table provides the basic and diluted earnings per common share computations for the three months ended March 31, 2016 and 2015 . Table 16.3 – Basic and Diluted Earnings Per Common Share Three Months Ended March 31, (In Thousands, Except Share Data) 2016 2015 Basic Earnings Per Common Share: Net income attributable to Redwood $ 12,063 $ 14,801 Less: Dividends and undistributed earnings allocated to participating securities (701 ) (822 ) Net income allocated to common shareholders $ 11,362 $ 13,979 Basic weighted average common shares outstanding 77,137,682 83,360,312 Basic Earnings Per Common Share $ 0.15 $ 0.17 Diluted Earnings Per Common Share: Net income attributable to Redwood $ 12,063 $ 14,801 Less: Dividends and undistributed earnings allocated to participating securities (701 ) (822 ) Net income allocated to common shareholders $ 11,362 $ 13,979 Weighted average common shares outstanding 77,137,682 83,360,312 Net effect of dilutive equity awards — 2,261,904 Diluted weighted average common shares outstanding 77,137,682 85,622,216 Diluted Earnings Per Common Share $ 0.15 $ 0.16 For the three months ended March 31, 2016 and 2015 , 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 three months ended March 31, 2016 and 2015 , 21,245,028 and 21,292,309 , respectively, of common shares related to the assumed conversion of the convertible notes were antidilutive and were excluded in the calculation of diluted earnings per share. For the three months ended March 31, 2016 and 2015 , the number of outstanding equity awards that were antidilutive totaled 6,950 and 79,535 , respectively. Stock Repurchases In August 2015, our Board of Directors authorized the repurchase of up to $100 million of our common stock. During the three months ended March 31, 2016, we repurchased 839,130 common shares for $11 million , utilizing the remaining availability under this 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 current authorization replaced all previous share repurchase plans and has no expiration date. This current repurchase authorization does not obligate us to acquire any specific number of shares or securities. Under this current 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. Under this authorization, during the three months ended March 31, 2016 , we repurchased 770,055 shares pursuant to this authorization for $9 million . During the three months ended March 31, 2015 , there were no shares acquired under then-existing share repurchase authorization. At March 31, 2016 , approximately $91 million of this current authorization remained available for the repurchase of shares of our common stock.

Equity Compensation Plans

Equity Compensation Plans	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Equity Compensation Plans	Equity Compensation Plans At March 31, 2016 and December 31, 2015 , 1,391,379 and 1,665,032 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 $20 million at March 31, 2016 , as shown in the following table. Table 17.1 – Activities of Equity Compensation Costs by Award Type Three Months Ended March 31, 2016 (In Thousands) Restricted Stock Deferred Stock Units Performance Stock Units Employee Stock Purchase Plan Total Unrecognized compensation cost at beginning of period $ 2,393 $ 14,392 $ 6,823 $ — $ 23,608 Equity grants 1,741 3,355 — 124 5,220 Equity grant forfeitures (1,119 ) (150 ) (2,209 ) — (3,478 ) Equity compensation (expense) income 17 (4,712 ) (1,092 ) (31 ) (5,818 ) Unrecognized Compensation Cost at End of Period $ 3,032 $ 12,885 $ 3,522 $ 93 $ 19,532 At March 31, 2016 , the weighted average amortization period remaining for all of our equity awards was less than two years. Restricted Stock At March 31, 2016 and December 31, 2015 , there were 223,914 and 187,180 shares, respectively, of restricted stock outstanding. Restrictions on these shares lapse through 2020 . During the three months ended March 31, 2016 , there were 144,056 shares of restricted stock granted, restrictions on 48,061 shares of restricted stock lapsed and those shares were distributed, and 59,261 shares of restricted stock awards forfeited. Deferred Stock Units (“DSUs”) At March 31, 2016 and December 31, 2015 , there were 2,680,320 and 2,407,154 DSUs, respectively, outstanding of which 1,707,272 and 1,363,548 , respectively, had vested. There were 281,014 DSUs granted, no DSUs distributed, and 7,849 DSUs forfeited during the three months ended March 31, 2016 . Unvested DSUs at March 31, 2016 vest through 2020 . During the three months ended March 31, 2016 , equity compensation expense of $3 million was recognized in connection with the announced departures of two executives due to the full vesting of their DSUs in accordance with the terms of their employment agreements. Performance Stock Units (“PSUs”) At both March 31, 2016 and December 31, 2015 , the target number of PSUs that were unvested was 656,549 and 849,021 , 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 an average of the per share price of our common stock over a 40 trading day period preceding 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 during 2016 and 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 the three months ended March 31, 2016, equity compensation expense of $0.6 million was recognized in connection with the announced departures of two executives to reflect the pro-rated vesting of their PSUs through their expected departure dates in 2016 in accordance with the terms of their employment agreements. 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 March 31, 2016 and December 31, 2015 , 316,990 and 310,040 shares had been purchased, respectively, and there remained a negligible amount of uninvested employee contributions in the ESPP at March 31, 2016 .

Mortgage Banking Activities, Ne

Mortgage Banking Activities, Net	3 Months Ended
	Mar. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Mortgage Banking Activities, Net	Mortgage Banking Activities, Net The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income for the three months ended March 31, 2016 and 2015 . Table 18.1 – Mortgage Banking Activities Three Months Ended March 31, (In Thousands) 2016 2015 Residential mortgage banking activities, net: Changes in fair value of: Residential loans, at fair value (1) $ 18,074 $ 20,312 Sequoia securities 1,484 (14,359 ) Risk management derivatives (2) (10,216 ) (4,371 ) Other income (expense), net (3) (62 ) 633 Total residential mortgage banking activities, net 9,280 2,215 Commercial mortgage banking activities, net: Changes in fair value of: Commercial loans, at fair value 433 5,857 Risk management derivatives (3) (2,538 ) (6,212 ) Other fee income 43 63 Total commercial mortgage banking activities, net (2,062 ) (292 ) Mortgage Banking Activities, Net $ 7,218 $ 1,923 (1) Includes changes in fair value for associated loan purchase and forward sale commitments. (2) Represents market valuation changes of derivatives that are used to manage risks associated with our accumulation of residential and commercial loans. (3) Amounts in this line item include other fee income from loan acquisitions and the provision for repurchases expense, presented net.

Investments Fair Value Changes,

Investments Fair Value Changes, Net	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Investments Fair Value Changes, Net	Investment Fair Value Changes, Net The following table presents the components of Investment fair value changes, net, recorded in our consolidated statements of income for the three months ended March 31, 2016 and 2015 . Table 19.1 – Investment Activities Three Months Ended March 31, (In Thousands) 2016 2015 Investment fair value changes, net Changes in fair value of: Residential loans held-for-investment, at Redwood $ 23,463 $ 1,980 Trading securities (5,601 ) 270 Net investments in consolidated Sequoia entities (1,580 ) (1,093 ) Risk sharing investments (10 ) (928 ) Risk management derivatives (35,810 ) (1,374 ) Investment Fair Value Changes, Net $ (19,538 ) $ (1,145 )

Operating Expenses

Operating Expenses	3 Months Ended
	Mar. 31, 2016
Other Income and Expenses [Abstract]
Operating Expenses	Operating Expenses Components of our operating expenses for the three months ended March 31, 2016 and 2015 are presented in the following table. Table 20.1 – Components of Operating Expenses Three Months Ended March 31, (In Thousands) 2016 2015 Fixed compensation expense $ 7,894 $ 9,155 Variable compensation expense 1,760 3,991 Equity compensation expense 2,332 2,738 Total compensation expense 11,986 15,884 Systems and consulting 2,622 2,122 Loan acquisition costs (1) 1,601 2,324 Office costs 1,380 1,232 Accounting and legal 985 1,577 Corporate costs 466 526 Other operating expenses 753 1,398 Operating expenses before restructuring charges $ 19,793 $ 25,063 Restructuring charges (2) 10,659 — Total Operating Expenses $ 30,452 $ 25,063 (1) Loan acquisition costs primarily includes underwriting and due diligence costs related to the acquisition of residential loans held-for-sale at fair value. (2) For the three month months ended March 31, 2016 , restructuring charges included $5 million of fixed compensation expense and $4 million of equity compensation expense related to one-time termination benefits, as well as $2 million of other contract termination costs, associated with the restructuring of our conforming and commercial mortgage banking operations and related charges associated with the departure of Redwood's President announced in the first quarter of 2016. See Note 11 for further discussion on restructuring charges.

Taxes

Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Taxes	Taxes For the three months ended March 31, 2016 and 2015 , we recognized a provision for income taxes of $28 thousand and a benefit for income taxes of $5 million , respectively. The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at March 31, 2016 and 2015 . Table 21.1 – Reconciliation of Statutory Tax Rate to Effective Tax Rate March 31, 2016 March 31, 2015 Federal statutory rate 34.0 % 34.0 % State statutory rate, net of Federal tax effect 7.2 % 7.2 % Differences in taxable (loss) income from GAAP income (74.0 )% (44.7 )% Change in valuation allowance 92.0 % 11.9 % Dividends paid deduction (59.0 )% (64.4 )% Effective Tax Rate 0.2 % (56.0 )% We assessed our tax positions for all open tax years (i.e., Federal, 2012 to 2016, and State, 2011- 2016) and, at March 31, 2016 and December 31, 2015 , concluded that we had no uncertain tax positions that resulted in material unrecognized tax benefits.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment Information	Segment Information Redwood operates in three segments: Residential Mortgage Banking, Residential Investments, and Commercial. Beginning in the first quarter of 2016, we renamed our former "Commercial mortgage banking and investments" segment to our "Commercial" segment, as a result of our announcement to discontinue the origination of commercial loans. Our segments are based on our organizational and management structure, which aligns with how our results are monitored and performance is assessed. For a full description of our segments, see Item 1—Business in our Annual Report on Form 10-K for the year ended December 31, 2015 . 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. The following tables present financial information by segment for the three months ended March 31, 2016 and 2015 . Table 22.1 – Business Segment Financial Information Three Months Ended March 31, 2016 (In Thousands) Residential Mortgage Banking Residential Investments Commercial Corporate/ Total Interest income $ 7,869 $ 39,936 $ 9,581 $ 4,942 $ 62,328 Interest expense (3,289 ) (4,953 ) (2,952 ) (12,756 ) (23,950 ) Net interest income (loss) 4,580 34,983 6,629 (7,814 ) 38,378 Reversal of provision for loan losses — — (289 ) — (289 ) Non-interest income Mortgage banking activities, net 9,280 — (2,062 ) — 7,218 MSR income (loss), net — 6,281 — — 6,281 Investment fair value changes, net — (17,765 ) (137 ) (1,636 ) (19,538 ) Other income — 955 — — 955 Realized gains, net — 9,246 — 292 9,538 Total non-interest income, net 9,280 (1,283 ) (2,199 ) (1,344 ) 4,454 Direct operating expenses (1) (5,321 ) (1,861 ) (1,602 ) (21,668 ) (30,452 ) Provision for income taxes — (28 ) — — (28 ) Segment Contribution $ 8,539 $ 31,811 $ 2,539 $ (30,826 ) Net Income $ 12,063 Non-cash amortization income (expense) $ (43 ) $ 8,068 $ (16 ) $ (990 ) $ 7,019 (1) For the three months ended March 31, 2016 , charges associated with the restructuring of our conforming residential mortgage loan operations and commercial operations are presented under the Corporate/Other column. See Note 11 for further discussion of these restructuring charges. Three Months Ended March 31, 2015 (In Thousands) Residential Mortgage Banking Residential Investments Commercial Corporate/ Total Interest income $ 15,795 $ 30,012 $ 10,914 $ 7,025 $ 63,746 Interest expense (3,778 ) (2,810 ) (3,489 ) (13,884 ) (23,961 ) Net interest income (loss) 12,017 27,202 7,425 (6,859 ) 39,785 Provision for loan losses — — (206 ) — (206 ) Non-interest income Mortgage banking activities, net 2,215 — (292 ) — 1,923 MSR income (loss), net — (10,924 ) — — (10,924 ) Investment fair value changes, net 2 (19 ) — (1,128 ) (1,145 ) Other income — 809 — — 809 Realized gains, net — 4,306 — — 4,306 Total non-interest income, net 2,217 (5,828 ) (292 ) (1,128 ) (5,031 ) Direct operating expenses (10,903 ) (1,118 ) (3,482 ) (9,560 ) (25,063 ) Benefit from income taxes 8 3,510 853 945 5,316 Segment Contribution $ 3,339 $ 23,766 $ 4,298 $ (16,602 ) Net Income $ 14,801 Non-cash amortization income (expense) $ (46 ) $ 9,838 $ (49 ) $ (981 ) $ 8,762 The following tables present the components of Corporate/Other for the three months ended March 31, 2016 and 2015 . Table 22.2 – Components of Corporate/Other Three Months Ended March 31, 2016 2015 (In Thousands) Legacy VIEs (1) Other Total Legacy VIEs (1) Other Total Interest income $ 4,777 $ 165 $ 4,942 $ 7,018 $ 7 $ 7,025 Interest expense (3,297 ) (9,459 ) (12,756 ) (4,482 ) (9,402 ) (13,884 ) Net interest income (loss) 1,480 (9,294 ) (7,814 ) 2,536 (9,395 ) (6,859 ) Reversal of provision for loan losses — — — — — — Non-interest income Mortgage banking activities, net — — — — — — MSR income (loss), net — — — — — — Investment fair value changes, net (1,580 ) (56 ) (1,636 ) (1,093 ) (35 ) (1,128 ) Other income — — — — — — Realized gains, net — 292 292 — — — Total non-interest income, net (1,580 ) 236 (1,344 ) (1,093 ) (35 ) (1,128 ) Direct operating expenses — (21,668 ) (21,668 ) — (9,560 ) (9,560 ) (Provision for) benefit from income taxes — — — — 945 945 Total $ (100 ) $ (30,726 ) $ (30,826 ) $ 1,443 $ (18,045 ) $ (16,602 ) (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 March 31, 2016 and December 31, 2015 . Table 22.3 – Supplemental Segment Information (In Thousands) Residential Mortgage Banking Residential Investments Commercial Corporate/ Other Total March 31, 2016 Residential loans $ 441,076 $ 2,343,953 $ — $ 930,027 $ 3,715,056 Commercial loans — — 363,893 — 363,893 Real estate securities — 909,569 10,358 — 919,927 Mortgage servicing rights — 126,620 — — 126,620 Total assets 472,213 3,552,629 377,452 1,324,586 5,726,880 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 3,140,604 415,716 1,316,235 6,220,047

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	The consolidated financial statements presented herein are at March 31, 2016 and December 31, 2015 , and for the three months ended March 31, 2016 and 2015 . These interim unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in financial statements 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”) — have been condensed or omitted according to these SEC rules and regulations. Management believes that the disclosures included in these interim financial statements should be read in conjunction with consolidated financial statements and notes thereto included in the company's Annual Report on Form 10-K for the year ended December 31, 2015 . In the opinion of management, all normal and recurring adjustments to present fairly the financial condition of the company at March 31, 2016 and results of operations for all periods presented have been made. The results of operations for the three months ended March 31, 2016 should not be construed as indicative of the results to be expected for the full year. 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 mortgage servicing right ("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 I, Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Quarterly Report on Form 10-Q. Additionally, in the first quarter of 2016, we began to present the changes in fair value of certain investments and their associated derivatives in the new line item "Investment fair value changes, net" on our consolidated statements of income and began to present income from mortgage banking activities in "Mortgage banking activities, net" on our consolidated statements of income. We conformed the presentation of prior periods related to this change for consistency of comparison. See Notes 18 and 19 for additional detail on the components of these income statement line items.
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, manager, 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.
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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Newly Adopted Accounting Standards Updates ("ASUs") 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. We adopted this guidance, as required, in the first quarter of 2016, which did not 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, and is required to be applied on a retrospective basis. We adopted this guidance, as required, in the first quarter of 2016 and now present our deferred securities issuance costs as a reduction to the related liabilities on our consolidated balance sheets for all periods presented. At March 31, 2016 and December 31, 2015 , we included $0.3 million and $0.5 million , respectively, of deferred securities issuance costs as a reduction to our ABS issued and presented it as ABS issued, net on our consolidated balance sheets and, for both periods, we included $10 million of deferred securities issuance costs as a reduction to our long-term debt and presented it as Long-term debt, net on our consolidated balance sheets. 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. We adopted this guidance, as required, in the first quarter of 2016, which did not have a material impact on our consolidated financial statements. Other Recent Accounting Pronouncements In March 2016, the FASB issued 2016 ASU 2016-09,"Compensation - Stock compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." This new guidance is to simplify the accounting for share-based payment transactions, including related income tax accounting, classification of awards, and classification on the statement of cash flows. This new guidance is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. We plan to adopt this new guidance by the required date and do not believe it will have a material impact to our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02,"Leases." This new guidance requires lessees to recognize most leases on their balance sheet as a right-of-use asset and a lease liability. This new guidance retains a dual lease accounting model, which requires leases to be classified as either operating or capital leases for lessees, for purposes of income statement recognition. This new guidance is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. We plan to adopt this new guidance by the required date and we are currently evaluating the impact that this update will have on our consolidated financial statements. 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 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. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)." This new guidance provides additional implementation guidance on how an entity should identify the unit of accounting for the principal versus agent evaluations. We are currently evaluating the impact these updates will have on our consolidated financial statements.
Balance Sheet Netting	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. 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.

Summary of Significant Accoun31

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
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 March 31, 2016 and December 31, 2015 . Table 3.1 – 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 March 31, 2016 Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 24,188 $ — $ 24,188 $ (18,926 ) $ (4,581 ) $ 681 TBAs 2,843 — 2,843 (1,339 ) — 1,504 Total Assets $ 27,031 $ — $ 27,031 $ (20,265 ) $ (4,581 ) $ 2,185 Liabilities (2) Interest rate agreements $ (92,100 ) $ — $ (92,100 ) $ 18,926 $ 73,174 $ — TBAs (3,739 ) — (3,739 ) 1,339 1,680 (720 ) Futures (1,324 ) — (1,324 ) — 1,324 — Loan warehouse debt (368,679 ) — (368,679 ) 368,679 — — Security repurchase agreements (435,496 ) — (435,496 ) 435,496 — — Total Liabilities $ (901,338 ) $ — $ (901,338 ) $ 824,440 $ 76,178 $ (720 ) 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 ) (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.

Principles of Consolidation (Ta

Principles of Consolidation (Tables)	3 Months Ended
	Mar. 31, 2016
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 three months ended March 31, 2016 and 2015 . Table 4.2 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended March 31, (In Thousands) 2016 2015 Principal balance of loans transferred $ — $ 338,796 Trading securities retained, at fair value — 3,423 AFS securities retained, at fair value — 2,859 MSRs recognized — 1,872
Cash Flows Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table summarizes the cash flows during the three months ended March 31, 2016 and 2015 between us and the unconsolidated VIEs sponsored by us. Table 4.3 – Cash Flows Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended March 31, (In Thousands) 2016 2015 Proceeds from new transfers $ — $ 341,716 MSR fees received 3,523 3,770 Funding of compensating interest (79 ) (90 ) Cash flows received on retained securities 11,191 12,645
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 Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 At Date of Securitization MSRs Subordinate Securities MSRs Subordinate Securities Prepayment rate N/A N/A 5 % - 19 % 8 % Discount rates N/A N/A 11 % 6 % Credit loss assumptions N/A N/A N/A 0.25 %
Unconsolidated Variable Interest Entity's Sponsored by Redwood Summary	The following table presents additional information at March 31, 2016 and December 31, 2015 , related to unconsolidated VIEs sponsored by Redwood and accounted for as sales since 2012. Table 4.5 – Unconsolidated VIEs Sponsored by Redwood (In Thousands) March 31, 2016 December 31, 2015 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 32,434 $ 258,697 Senior and subordinate securities, classified as AFS 274,380 272,715 Mortgage servicing rights 39,220 56,984 Maximum loss exposure (1) $ 346,034 $ 588,396 Assets transferred: Principal balance of loans outstanding $ 7,055,574 $ 7,318,167 Principal balance of delinquent loans 30+ days delinquent 15,235 18,300 (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 March 31, 2016 and December 31, 2015 . Table 4.6 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood March 31, 2016 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at March 31, 2016 $ 39,220 $ 22,177 $ 284,637 Expected life (in years) (2) 4 4 11 Prepayment speed assumption (annual CPR) (2) 21 % 14 % 13 % Decrease in fair value from: 10% adverse change $ 2,423 $ 1,297 $ 969 25% adverse change 5,800 3,039 2,459 Discount rate assumption (2) 11 % 11 % 6 % Decrease in fair value from: 100 basis point increase $ 1,024 $ 650 $ 21,432 200 basis point increase 2,012 1,264 40,189 Credit loss assumption (2) N/A 0.25 % 0.25 % Decrease in fair value from: 10% higher losses N/A $ 15 $ 1,213 25% higher losses N/A 38 3,042 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 (1) Senior securities included $22 million and $31 million of interest only securities as of March 31, 2016 and December 31, 2015 , respectively. (2) Expected life, prepayment speed assumption, discount rate assumption, and credit loss assumption presented in the tables above represent weighted averages.
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 March 31, 2016 Sequoia Entities Commercial Securitization Total (Dollars in Thousands) Residential loans, held-for-investment $ 930,027 $ — $ 930,027 Commercial loans, held-for-investment — 164,626 164,626 Restricted cash 147 136 283 Accrued interest receivable 1,038 1,290 2,328 Other assets 4,884 47 4,931 Total Assets $ 936,096 $ 166,099 $ 1,102,195 Accrued interest payable $ 519 $ 242 $ 761 Asset-backed securities issued 907,023 51,680 958,703 Total Liabilities $ 907,542 $ 51,922 $ 959,464 Number of VIEs 20 1 21 December 31, 2015 Sequoia Entities 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, net 996,820 53,137 1,049,957 Total Liabilities $ 997,475 $ 53,386 $ 1,050,861 Number of VIEs 21 1 22
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Schedule of Variable Interest Entities	The following table presents a summary of our interests in third-party VIEs at March 31, 2016 , grouped by security type. Table 4.7 – Third-Party Sponsored VIE Summary (Dollars in Thousands) March 31, 2016 Mortgage Backed Securities Senior $ 146,030 Re-REMIC 162,970 Subordinate 304,113 Total Investments in Third-Party Sponsored VIEs $ 613,113

Fair Value of Financial Instr33

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and December 31, 2015 . Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities March 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value (In Thousands) Assets Residential loans, held-for-sale At fair value $ 439,674 $ 439,674 $ 1,114,305 $ 1,114,305 At lower of cost or fair value 1,402 1,594 1,433 1,635 Residential loans, held-for-investment (1) At fair value 3,273,980 3,273,980 2,813,065 2,813,065 Commercial loans, held-for-sale — — 39,141 39,141 Commercial loans, held-for-investment At fair value 69,674 69,674 67,657 67,657 At amortized cost 294,219 301,488 295,849 300,824 Trading securities 221,571 221,571 404,011 404,011 Available-for-sale securities 698,356 698,356 829,245 829,245 MSRs 126,620 126,620 191,976 191,976 Cash and cash equivalents 305,115 305,115 220,229 220,229 Restricted cash 2,137 2,137 5,567 5,567 Accrued interest receivable 19,766 19,766 23,290 23,290 Derivative assets 31,975 31,975 16,393 16,393 REO (2) 4,884 5,475 4,896 5,282 Margin receivable (2) 107,941 107,941 83,191 83,191 FHLBC stock (2) 44,071 44,071 34,437 34,437 Guarantee asset (2) 4,272 4,272 5,697 5,697 Pledged collateral (2) 59,664 59,664 53,600 53,600 Liabilities Short-term debt $ 804,175 $ 804,175 $ 1,855,003 $ 1,855,003 Accrued interest payable 15,522 15,522 8,936 8,936 Margin payable 14,247 14,247 6,415 6,415 Guarantee obligation 24,896 23,595 22,704 22,702 Derivative liabilities 97,468 97,468 62,794 62,794 ABS issued, net (1) (2) Fair value 907,023 907,023 996,820 996,820 Amortized cost 51,341 51,680 52,595 53,137 FHLBC long-term borrowings 1,999,999 1,999,999 1,343,023 1,343,023 Commercial secured borrowings 65,181 65,181 63,152 63,152 Convertible notes, net (2) 479,798 453,396 483,119 461,053 Trust preferred securities and subordinated notes, net (2) 138,454 80,910 138,443 83,700 (1) These assets are included in other assets on our consolidated balance sheets. (2) On January 1, 2016, we adopted ASU 2015-03 and began to present ABS issued, convertible notes, and other long-term debt net of deferred debt issuance costs. See Note 3 for further discussion.
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 March 31, 2016 and December 31, 2015 , 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 March 31, 2016 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 3,713,654 $ — $ 1,387 $ 3,712,267 Commercial loans 69,674 — — 69,674 Trading securities 221,571 — — 221,571 Available-for-sale securities 698,356 — — 698,356 Derivative assets 31,975 2,843 24,188 4,944 MSRs 126,620 — — 126,620 Pledged collateral 59,664 59,664 — — FHLBC stock 44,071 — 44,071 — Guarantee asset 4,272 — — 4,272 Liabilities Derivative liabilities $ 97,468 $ 5,063 $ 92,100 $ 305 Commercial secured borrowings 65,181 — — 65,181 ABS issued 907,023 — — 907,023 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
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 three months ended March 31, 2016 . 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, 2015 $ 3,797,551 $ 106,798 $ 404,011 $ 829,245 $ 191,976 $ 5,697 $ 3,208 $ 63,152 $ 996,820 Acquisitions 1,020,846 37,626 47,760 15,585 8,807 — — — — Sales (941,790 ) (77,183 ) (220,123 ) (125,911 ) (29,559 ) — — — — Principal paydowns (161,241 ) (171 ) (5,718 ) (16,683 ) — — — (155 ) (49,411 ) Gains (losses) in net income, net (7,934 ) 2,604 (4,359 ) 17,314 (44,604 ) (1,425 ) 15,606 2,171 (33,515 ) Unrealized losses in OCI, net — — — (21,194 ) — — — — — Other settlements, net (2) 4,835 — — — — — (14,175 ) 13 (6,871 ) Ending balance - March 31, 2016 $ 3,712,267 $ 69,674 $ 221,571 $ 698,356 $ 126,620 $ 4,272 $ 4,639 $ 65,181 $ 907,023 (1) For the purpose of this presentation, derivative assets and liabilities, which consist of loan purchase commitments, are presented on a net basis. (2) 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 March 31, 2016 and 2015 . Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the three months ended March 31, 2016 and 2015 are not included in this presentation. Table 5.4 – Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held at March 31, 2016 and 2015 Included in Net Income Included in Net Income Three Months Ended March 31, (In Thousands) 2016 2015 Assets Residential loans at Redwood $ 27,285 $ 5,464 Residential loans at consolidated Sequoia entities (35,656 ) 1,179 Commercial loans 2,171 2,959 Trading securities (6,135 ) (13,790 ) MSRs (30,834 ) (11,769 ) Loan purchase commitments 4,644 7,422 Other assets - Guarantee asset (1,425 ) (1,083 ) Liabilities Commercial secured borrowing 2,171 (1,509 ) ABS issued (33,515 ) (2,946 )
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 March 31, 2016 . 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 consolidated balance sheet at March 31, 2016 . Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis at March 31, 2016 Gain (Loss) for March 31, 2016 Carrying Value Fair Value Measurements Using Three Months Ended (In Thousands) Level 1 Level 2 Level 3 March 31, 2016 Assets Residential loans, at lower of cost or fair value $ 1,076 $ — $ — $ 1,076 $ (16 ) REO 1,285 — — 1,285 (252 ) Liabilities Guarantee obligation $ 928 $ — $ — $ 928 $ —
Market Valuation Gains and Losses, Net	The following table presents the net gains and losses recorded in each line item of our consolidated statements of income for the three months ended March 31, 2016 and 2015 . Table 5.6 – Market Valuation Gains and Losses, Net Three Months Ended March 31, (In Thousands) 2016 2015 Mortgage banking activities, net Residential loans held-for-sale, at fair value $ 5,439 $ 2,056 Residential loan purchase and forward sale commitments 12,635 18,256 Commercial loans, at fair value (1) 433 5,857 Sequoia securities 1,484 (14,359 ) Risk management derivatives, net (12,754 ) (10,583 ) Total mortgage banking activities, net (2) $ 7,237 $ 1,227 Investment fair value changes, net Residential loans held-for-investment at Redwood $ 23,463 $ 1,980 Net investments in consolidated Sequoia entities (1,580 ) (1,093 ) Trading securities (5,601 ) 270 Risk management derivatives, net (35,810 ) (1,374 ) Risk sharing investments (10 ) (928 ) Total investment fair value changes, net $ (19,538 ) $ (1,145 ) MSR income (loss), net MSRs $ (44,604 ) $ (19,517 ) Risk management derivatives, net 41,057 — Total MSR loss, net (3) $ (3,547 ) $ (19,517 ) Total Market Valuation Losses, Net $ (15,848 ) $ (19,435 ) (1) 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. (2) Mortgage banking activities, net presented above does not include fee income or provisions for repurchases that are components of Mortgage banking activities, net presented on our consolidated statements of income, as these amounts do not represent market valuation changes. (3) 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. In addition, we did not specifically identify derivatives used to hedge MSRs in the first quarter of 2015. See Note 2 for additional detail.
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 March 31, 2016 Fair Value Weighted Average (Dollars in Thousands, except Input Values) Unobservable Input Range Assets Residential loans, at fair value: Jumbo fixed rate loans $ 2,494,912 Whole loan spread to TBA price $ 3.13 - $ 4.35 $ 4.12 Jumbo hybrid loans 83,124 Prepayment rate (annual CPR) 15 - 15 % 15 % Spread to swap rate 130 - 180 bps 151 bps Jumbo loans committed to sell 204,204 Committed Sales Price $ 101.91 - $ 102.30 $ 102.14 Loans held by consolidated Sequoia entities (1) 930,027 Liability price N/A N/A Residential loans, at lower of cost or fair value 1,076 Loss severity 15 - 30 % 29 % Commercial loans, at fair value 69,674 Spread to swap rate 212 - 212 bps 212 bps Credit support 25 - 25 % 25 % Trading and AFS securities 919,927 Discount rate 5 - 12 % 6 % Prepayment rate (annual CPR) 1 - 35 % 14 % Default rate — - 35 % 3 % Loss severity 20 - 65 % 23 % Credit support — - 48 % 4 % MSRs 126,620 Discount rate 8 - 13 % 10 % Prepayment rate (annual CPR) 4 - 60 % 15 % Per loan annual cost to service $ 72 - $ 82 $ 78 Guarantee asset 4,272 Discount rate 11 - 11 % 11 % Prepayment rate (annual CPR) 19 - 19 % 19 % REO 1,285 Loss severity 11 - 93 % 35 % Loan purchase commitments, net (2) 4,639 MSR Multiple 0.3 - 6.6 x 2.8 x Fallout rate 2 - 98 % 44 % Whole loan spread to TBA price 3.35 - 4.35 4.16 Prepayment rate (annual CPR) 15 - 15 % 15 % Spread to swap rate 130 - 180 bps 154 bps Liabilities ABS issued 907,023 Discount rate 5 - 9 % 5 % Prepayment rate (annual CPR) 5 - 20 % 12 % Default rate 1 - 12 % 7 % Loss severity 20 - 32 % 27 % Credit support — - 33 % 9 % Commercial secured borrowings 65,181 Spread to swap rate 212 - 212 bps 212 bps Credit support 25 % - 25 % 25 % (1) The fair value of the loans held by consolidated Sequoia entities was based on the fair value of the ABS issued by these entities, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities. (2) For the purpose of this presentation, loan purchase commitment assets and liabilities are presented net.

Residential Loans (Tables)

Residential Loans (Tables)	3 Months Ended
	Mar. 31, 2016
Residential Loans
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 March 31, 2016 and December 31, 2015 . Table 6.1 – Classifications and Carrying Values of the Residential Loans March 31, 2016 (In Thousands) Redwood Sequoia Total Held-for-sale Fair value - conforming $ 1,387 $ — $ 1,387 Fair value - jumbo 438,287 — 438,287 Lower of cost or fair value - jumbo 1,402 — 1,402 Total held-for-sale 441,076 — 441,076 Held-for-investment Fair value - jumbo 2,343,953 930,027 3,273,980 Total Residential Loans $ 2,785,029 $ 930,027 $ 3,715,056 December 31, 2015 (In Thousands) Redwood Sequoia 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

Commercial Loans (Tables)

Commercial Loans (Tables)	3 Months Ended
	Mar. 31, 2016
Commercial Loans Held For Investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
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) March 31, 2016 December 31, 2015 Pass $ 260,599 $ 272,768 Watch list 44,918 34,279 Total Commercial Loans Held-for-Investment $ 305,517 $ 307,047
Commercial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Classifications and Carrying Value of Loans	The following table summarizes the classifications and carrying value of commercial loans at March 31, 2016 and December 31, 2015 . Table 7.1 – Classifications and Carrying Value of Commercial Loans (In Thousands) March 31, 2016 December 31, 2015 Held-for-sale, at fair value $ — $ 39,141 Held-for-investment At fair value 69,674 67,657 At amortized cost 294,219 295,849 Total Commercial Loans $ 363,893 $ 402,647
Carrying Value for Loans Held-for-Investment	The following table provides additional information for our commercial loans held-for-investment at amortized cost at March 31, 2016 and December 31, 2015 . Table 7.2 – Carrying Value for Commercial Loans Held-for-Investment at Amortized Cost (In Thousands) March 31, 2016 December 31, 2015 Principal balance $ 305,517 $ 307,047 Unamortized discount, net (3,908 ) (4,096 ) Recorded investment 301,609 302,951 Allowance for loan losses (7,390 ) (7,102 ) Carrying Value $ 294,219 $ 295,849
Summary of Activity in Allowance for Loans Losses	The following table summarizes the activity in the allowance for commercial loan losses for the three months ended March 31, 2016 and 2015 . Table 7.4 – Activity in the Allowance for Commercial Loan Losses Three Months Ended March 31, (In Thousands) 2016 2015 Balance at beginning of period $ 7,102 $ 7,457 Provision for loan losses 288 205 Balance at End of Period $ 7,390 $ 7,662
Collectively Evaluated for Impairment | Commercial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Evaluated for Impairment	The following table summarizes the balances for loans collectively evaluated for impairment at March 31, 2016 and December 31, 2015 . Table 7.5 – Loans Collectively Evaluated for Impairment Review (In Thousands) March 31, 2016 December 31, 2015 Principal balance $ 305,517 $ 307,047 Recorded investment 301,609 302,951 Related allowance 7,390 7,102

Real Estate Securities (Tables)

Real Estate Securities (Tables)	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Fair Values of Real Estate Securities	The following table presents the fair values of our real estate securities by type at March 31, 2016 and December 31, 2015 . Table 8.1 – Fair Values of Real Estate Securities by Type (In Thousands) March 31, 2016 December 31, 2015 Trading $ 221,571 $ 404,011 Available-for-sale 698,356 829,245 Total Real Estate Securities $ 919,927 $ 1,233,256
Trading Securities by Collateral Type	The following table presents the fair value of trading securities by collateral type at March 31, 2016 and December 31, 2015 . Table 8.2 – Trading Securities by Collateral Type (In Thousands) March 31, 2016 December 31, 2015 Senior Securities Prime $ 22,177 $ 248,570 Non-prime 5,414 5,781 Total Senior Securities 27,591 254,351 Subordinate Securities Prime mezzanine (1) 144,317 136,140 Prime subordinate (2) 49,663 13,520 Total Subordinate Securities (3) 193,980 149,660 Total Trading Securities $ 221,571 $ 404,011 (1) Mezzanine includes securities initially rated AA through BBB- and issued in 2012 or later. (2) Subordinate securities includes less than $1 million of non-prime securities at both March 31, 2016 , and December 31, 2015 . (3) At March 31, 2016 , and December 31, 2015 , subordinate securities included $62 million and $25 million , respectively, of CRT securities.
Available for Sale Securities by Collateral Type	The following table presents the fair value of our available-for-sale securities by collateral type at March 31, 2016 and December 31, 2015 . Table 8.3 – Available-for-Sale Securities by Collateral Type (In Thousands) March 31, 2016 December 31, 2015 Senior Securities Prime $ 111,523 $ 210,993 Non-prime 29,093 68,258 Total Senior Securities 140,616 279,251 Re-REMIC Securities 162,970 165,064 Subordinate Securities Prime mezzanine (1) 225,787 224,624 Prime subordinate (2) 168,983 160,306 Total Subordinate Securities 394,770 384,930 Total AFS Securities $ 698,356 $ 829,245 (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 March 31, 2016 , and December 31, 2015 .
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 March 31, 2016 and December 31, 2015 . Table 8.4 – Carrying Value of AFS Securities March 31, 2016 Senior (In Thousands) Prime Non-prime Re-REMIC Subordinate Total Principal balance $ 120,577 $ 31,781 $ 189,146 $ 504,228 $ 845,732 Credit reserve (1,108 ) (687 ) (11,258 ) (35,494 ) (48,547 ) Unamortized discount, net (13,491 ) (3,262 ) (66,586 ) (136,291 ) (219,630 ) Amortized cost 105,978 27,832 111,302 332,443 577,555 Gross unrealized gains 9,326 1,482 51,668 64,538 127,014 Gross unrealized losses (3,781 ) (221 ) — (2,211 ) (6,213 ) Carrying Value $ 111,523 $ 29,093 $ 162,970 $ 394,770 $ 698,356 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
Changes of Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities	The following table presents the changes for the three months ended March 31, 2016 , 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 Three Months Ended March 31, 2016 Credit Unamortized (In Thousands) Beginning balance $ 48,869 $ 237,107 Amortization of net discount — (8,068 ) Realized credit losses (1,955 ) — Acquisitions 4,383 5,110 Sales, calls, other (4,252 ) (13,017 ) Transfers to (release of) credit reserves, net 1,502 (1,502 ) Ending Balance $ 48,547 $ 219,630
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 March 31, 2016 and December 31, 2015 . Table 8.6 – Components of Fair Value of Residential AFS Securities by Holding Periods Less Than 12 Consecutive Months 12 Consecutive Months or Longer Amortized Cost Unrealized Losses Fair Value Amortized Cost Unrealized Losses Fair (In Thousands) March 31, 2016 $ 39,132 $ (1,350 ) $ 37,782 $ 76,241 $ (4,863 ) $ 71,378 December 31, 2015 87,718 (1,972 ) 85,746 77,539 (3,035 ) 74,504
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 March 31, 2016 . Table 8.7 – Significant Valuation Assumptions Range for Securities March 31, 2016 Prime Non-prime Prepayment rates 10 - 20 % 12 - 15 % Projected losses 0 - 9 % 5 %
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 March 31, 2016 and 2015 , 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 Three Months Ended March 31, (In Thousands) 2016 2015 Balance at beginning of period $ 28,277 $ 33,849 Reductions Securities sold, or expected to sell (226 ) (95 ) Securities with no outstanding principal at period end (109 ) (805 ) Balance at End of Period $ 27,942 $ 32,949
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 three months ended March 31, 2016 and 2015 . Table 8.9 – Gross Realized Gains and Losses on AFS Securities Three Months Ended March 31, (In Thousands) 2016 2015 Gross realized gains - sales $ 11,419 $ 4,306 Gross realized losses - sales (2,173 ) — Total Realized Gains on Sales and Calls of AFS Securities, net $ 9,246 $ 4,306

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and December 31, 2015 . Table 9.1 – Fair Value of MSRs and Aggregate Principal Amounts of Associated Loans March 31, 2016 December 31, 2015 (In Thousands) MSR Fair Value Associated Principal MSR Fair Value Associated Principal Mortgage Servicing Rights Conforming Loans $ 86,591 $ 9,344,652 $ 133,838 $ 12,560,533 Jumbo Loans 40,029 5,479,353 58,138 5,705,939 Total Mortgage Servicing Rights $ 126,620 $ 14,824,005 $ 191,976 $ 18,266,472
Activity for Residential First-Lien Mortgage Servicing Rights	The following table presents activity for MSRs for the three months ended March 31, 2016 and 2015 . Table 9.2 – Activity for MSRs Three Months Ended March 31, (In Thousands) 2016 2015 Balance at beginning of period $ 191,976 $ 139,293 Additions 8,807 18,754 Sales (29,559 ) (18,206 ) Changes in fair value due to: Changes in assumptions (1) (38,328 ) (14,036 ) Other changes (2) (6,276 ) (5,481 ) Balance at End of Period $ 126,620 $ 120,324 (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 three months ended March 31, 2016 . Table 9.3 – MSR Additions (In Thousands) Three Months Ended March 31, 2016 MSR Fair Value Associated Principal Jumbo MSR additions: From loan sales $ 46 $ 6,519 Total jumbo MSR additions 46 6,519 Conforming MSR additions: From loan sales $ 3,364 $ 314,518 From purchases 5,397 549,034 Total conforming MSR additions 8,761 863,552 Total MSR Additions $ 8,807 $ 870,071
Components of Mortgage Servicing Rights Income	The following table presents the components of our MSR income. Table 9.4 – Components of MSR Income (Loss), net Three Months Ended March 31, (In Thousands) 2016 2015 Servicing income Income $ 11,684 $ 9,716 Cost of sub-servicer (2,038 ) (1,229 ) Net servicing income 9,646 8,487 Market valuation changes of MSRs (44,604 ) (19,517 ) Market valuation changes of associated derivatives (1) 41,057 — MSR provision for repurchases 182 106 MSR Income (Loss), Net $ 6,281 $ (10,924 ) (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 Instrume38

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and December 31, 2015 . Table 10.1 – Fair Value and Notional Amount of Derivative Financial Instruments March 31, 2016 December 31, 2015 Fair Value Notional Amount Fair Value Notional Amount (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 8,647 $ 525,000 $ 2,590 $ 658,000 TBAs 2,843 569,500 2,734 1,028,500 Swaptions 15,541 570,000 5,191 925,000 Credit default index swaps — — 1,207 25,000 Assets - Other Derivatives Loan purchase commitments 4,944 867,816 4,671 764,161 Total Assets $ 31,975 $ 2,532,316 $ 16,393 $ 3,400,661 Liabilities - Cash Flow Hedges Interest rate swaps $ (62,407 ) $ 139,500 $ (48,232 ) $ 139,500 Liabilities - Risk Management Derivatives Interest rate swaps (29,693 ) 968,500 (10,134 ) 1,039,500 TBAs (3,739 ) 581,000 (2,519 ) 1,450,500 Futures (1,324 ) 150,000 (445 ) 78,000 Liabilities - Other Derivatives Loan purchase commitments (305 ) 263,769 (1,464 ) 375,815 Total Liabilities $ (97,468 ) $ 2,102,769 $ (62,794 ) $ 3,083,315 Total Derivative Financial Instruments, Net $ (65,493 ) $ 4,635,085 $ (46,401 ) $ 6,483,976
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 three months ended March 31, 2016 and 2015 . Table 10.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Three Months Ended March 31, (In Thousands) 2016 2015 Net interest expense on cash flows hedges $ (1,387 ) $ (1,484 ) Realized net losses reclassified from other comprehensive income (18 ) (31 ) Total Interest Expense $ (1,405 ) $ (1,515 )

Other Assets and Liabilities (T

Other Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Summary of Other Assets	Other assets at March 31, 2016 and December 31, 2015 , are summarized in the following table. Table 11.1 – Components of Other Assets (In Thousands) March 31, 2016 December 31, 2015 Margin receivable $ 107,941 $ 83,191 Pledged collateral 59,664 53,600 FHLBC stock 44,071 34,437 Investment receivable 7,772 3,870 Guarantee asset 4,272 5,697 REO 4,884 4,896 Fixed assets and leasehold improvements (1) 3,608 4,117 Prepaid expenses 2,183 3,640 Other 7,996 4,438 Total Other Assets $ 242,391 $ 197,886 (1) Fixed assets and leasehold improvements have a basis of $6 million and accumulated depreciation of $2 million at March 31, 2016 .
Summary of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities at March 31, 2016 and December 31, 2015 are summarized in the following table. Table 11.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) March 31, 2016 December 31, 2015 Guarantee obligations $ 24,896 $ 22,704 Unsettled trades 15,014 29 Margin payable 14,247 6,415 Residential loan and MSR repurchase reserve 6,693 6,403 Accrued compensation 6,476 17,527 Restructuring liabilities 5,245 — Legal reserve 2,000 2,000 Accrued operating expenses 1,621 1,845 Current accounts payable 1,038 4,764 Other 4,939 8,210 Total Other Liabilities $ 82,169 $ 69,897
Restructuring and Related Costs	The following table presents our restructuring activities and the associated liabilities during the three months ended March 31, 2016 . Table 11.3 – Activities of Restructuring Liabilities Three Months Ended March 31, 2016 (In Thousands) Termination Benefits Contract Termination Costs Total Restructuring Liabilities Beginning balance $ — $ — $ — Costs incurred and expensed 8,738 1,921 10,659 Costs paid/settled (1,326 ) (602 ) (1,928 ) Adjustments (1) (3,486 ) — (3,486 ) Ending Balance $ 3,926 $ 1,319 $ 5,245 (1) Amount represents equity compensation expense recorded during the three months ended March 31, 2016 related to equity awards that were accelerated, and will be distributed in future periods.

Short-Term Debt (Tables)

Short-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and December 31, 2015 . Table 12.1 – Short-Term Debt Facilities March 31, 2016 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate Maturity Weighted Average Days Until Maturity Residential loan warehouse 4 $ 368,679 $ 1,400,000 1.97 % 6/2016-2/2017 240 Commercial loan warehouse 2 — 300,000 N/A 4/2016-10/2016 N/A Real estate securities repo 9 435,496 — 1.77 % 4/2016-6/2016 29 Total 15 $ 804,175 December 31, 2015 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate Maturity Weighted Average Days Until Maturity Residential loan warehouse 4 $ 950,022 $ 1,400,000 1.90 % 2/2016-12/2016 182 FHLBC (1) 1 137,622 — 0.21 % 7/2016-11/2016 204 Commercial loan warehouse 2 73,718 300,000 4.13 % 4/2016-10/2016 265 Real estate securities repo 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 at December 31, 2015 . See Note 14 for additional information on our FHLB-member subsidiary's borrowing agreement with the FHLBC.
Remaining Maturities of Short Term Debt	The following table presents the remaining maturities of short-term debt by the type of collateral securing the debt at March 31, 2016 . Table 12.2 – Short-Term Debt by Collateral Type and Remaining Maturities March 31, 2016 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for-sale residential loans $ — $ 64,571 $ 304,108 $ 368,679 Commercial loans (1) 4,337 — — 4,337 Real estate securities 309,112 122,047 — 431,159 Total Short-Term Debt $ 313,449 $ 186,618 $ 304,108 $ 804,175 (1) One commercial loan serves as collateral under a securities repo facility.

Asset-Backed Securities Issued

Asset-Backed Securities Issued (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and December 31, 2015 , along with other selected information, are summarized in the following table. Table 13.1 – Asset-Backed Securities Issued March 31, 2016 December 31, 2015 (Dollars in Thousands) Sequoia Commercial Securitization Total Sequoia Commercial Securitization Total Certificates with principal balance $ 1,044,364 $ 51,680 $ 1,096,044 $ 1,108,785 $ 53,137 $ 1,161,922 Interest-only certificates 4,598 — 4,598 4,672 — 4,672 Market valuation adjustments (141,939 ) — (141,939 ) (116,637 ) — (116,637 ) Total ABS Issued 907,023 51,680 958,703 996,820 53,137 1,049,957 Deferred debt issuance costs — (339 ) (339 ) — (542 ) (542 ) ABS issued, net (1) $ 907,023 $ 51,341 $ 958,364 $ 996,820 $ 52,595 $ 1,049,415 Range of weighted average interest rates, by series 0.64% to 1.87% 5.62 % 0.41% to 2.21% 5.62 % Stated maturities 2024 - 2037 2018 2017 - 2037 2018 Number of series 20 1 21 1 (1) Upon adoption of ASU 2015-03 on January 1, 2016, we began to present ABS issued, net of deferred debt issuance costs. See Note 3 for further discussion.
Summary of Accrued Interest Payable on ABS Issued	The following table summarizes the accrued interest payable on ABS issued at March 31, 2016 and December 31, 2015 . Interest due on consolidated ABS issued is payable monthly. Table 13.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) March 31, 2016 December 31, 2015 Sequoia $ 519 $ 555 Commercial Securitization 242 249 Total Accrued Interest Payable on ABS Issued $ 761 $ 804
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 March 31, 2016 and December 31, 2015 . Table 13.3 – Collateral for Asset-Backed Securities Issued March 31, 2016 December 31, 2015 (In Thousands) Sequoia Commercial Securitization Total Sequoia Commercial Securitization Total Residential loans $ 930,027 $ — $ 930,027 $ 1,021,870 $ — $ 1,021,870 Commercial loans — 164,626 164,626 — 166,016 166,016 Restricted cash 147 136 283 228 137 365 Accrued interest receivable 1,038 1,290 2,328 1,131 1,297 2,428 REO 4,884 47 4,931 4,895 — 4,895 Total Collateral for ABS Issued $ 936,096 $ 166,099 $ 1,102,195 $ 1,028,124 $ 167,450 $ 1,195,574

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt	The following table presents maturities of our FHLBC borrowings by year at March 31, 2016 . Table 14.1 – Maturities of FHLBC Borrowings by Year (In Thousands) March 31, 2016 2024 $ 470,171 2025 887,639 2026 642,189 Total FHLBC Borrowings $ 1,999,999

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Future Lease Commitments	The following table presents our future lease commitments at March 31, 2016 . Table 15.1 – Future Lease Commitments by Year (In Thousands) March 31, 2016 2016 (9 months) $ 2,149 2017 2,880 2018 1,827 2019 1,189 2020 1,127 2021 and thereafter 367 Total Lease Commitments $ 9,539

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Changes to Accumulated Other Comprehensive Income by Component	The following table provides a summary of changes to accumulated other comprehensive income by component for the three months ended March 31, 2016 and 2015 . Table 16.1 – Changes in Accumulated Other Comprehensive Income by Component Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 (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 $ 139,356 $ (47,363 ) $ 186,737 $ (46,049 ) Other comprehensive income (loss) (10,103 ) (14,243 ) 5,053 (8,442 ) Amounts reclassified from other (10,953 ) 18 (1,690 ) 31 Net current-period other comprehensive income (loss) (21,056 ) (14,225 ) 3,363 (8,411 ) Balance at End of Period $ 118,300 $ (61,588 ) $ 190,100 $ (54,460 )
Reclassifications out of Accumulated Other Comprehensive Income	The following table provides a summary of reclassifications out of accumulated other comprehensive income for three months ended March 31, 2016 and 2015 . Table 16.2 – Reclassifications Out of Accumulated Other Comprehensive Income Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Three Months Ended March 31, (In Thousands) Income Statement 2016 2015 Net realized (gain) loss on AFS securities Gain on sale of AFS securities Realized gains, net (10,953 ) (1,690 ) $ (10,953 ) $ (1,690 ) Net realized loss on interest rate Amortization of deferred loss Interest expense $ 18 $ 31 $ 18 $ 31
Basic and Diluted Earnings Per Common Share	The following table provides the basic and diluted earnings per common share computations for the three months ended March 31, 2016 and 2015 . Table 16.3 – Basic and Diluted Earnings Per Common Share Three Months Ended March 31, (In Thousands, Except Share Data) 2016 2015 Basic Earnings Per Common Share: Net income attributable to Redwood $ 12,063 $ 14,801 Less: Dividends and undistributed earnings allocated to participating securities (701 ) (822 ) Net income allocated to common shareholders $ 11,362 $ 13,979 Basic weighted average common shares outstanding 77,137,682 83,360,312 Basic Earnings Per Common Share $ 0.15 $ 0.17 Diluted Earnings Per Common Share: Net income attributable to Redwood $ 12,063 $ 14,801 Less: Dividends and undistributed earnings allocated to participating securities (701 ) (822 ) Net income allocated to common shareholders $ 11,362 $ 13,979 Weighted average common shares outstanding 77,137,682 83,360,312 Net effect of dilutive equity awards — 2,261,904 Diluted weighted average common shares outstanding 77,137,682 85,622,216 Diluted Earnings Per Common Share $ 0.15 $ 0.16

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	3 Months Ended
	Mar. 31, 2016
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 $20 million at March 31, 2016 , as shown in the following table. Table 17.1 – Activities of Equity Compensation Costs by Award Type Three Months Ended March 31, 2016 (In Thousands) Restricted Stock Deferred Stock Units Performance Stock Units Employee Stock Purchase Plan Total Unrecognized compensation cost at beginning of period $ 2,393 $ 14,392 $ 6,823 $ — $ 23,608 Equity grants 1,741 3,355 — 124 5,220 Equity grant forfeitures (1,119 ) (150 ) (2,209 ) — (3,478 ) Equity compensation (expense) income 17 (4,712 ) (1,092 ) (31 ) (5,818 ) Unrecognized Compensation Cost at End of Period $ 3,032 $ 12,885 $ 3,522 $ 93 $ 19,532

Mortgage Banking Activities, 46

Mortgage Banking Activities, Net (Tables)	3 Months Ended
	Mar. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Components of Mortgage Banking Activities, Net	The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income for the three months ended March 31, 2016 and 2015 . Table 18.1 – Mortgage Banking Activities Three Months Ended March 31, (In Thousands) 2016 2015 Residential mortgage banking activities, net: Changes in fair value of: Residential loans, at fair value (1) $ 18,074 $ 20,312 Sequoia securities 1,484 (14,359 ) Risk management derivatives (2) (10,216 ) (4,371 ) Other income (expense), net (3) (62 ) 633 Total residential mortgage banking activities, net 9,280 2,215 Commercial mortgage banking activities, net: Changes in fair value of: Commercial loans, at fair value 433 5,857 Risk management derivatives (3) (2,538 ) (6,212 ) Other fee income 43 63 Total commercial mortgage banking activities, net (2,062 ) (292 ) Mortgage Banking Activities, Net $ 7,218 $ 1,923 (1) Includes changes in fair value for associated loan purchase and forward sale commitments. (2) Represents market valuation changes of derivatives that are used to manage risks associated with our accumulation of residential and commercial loans. (3) Amounts in this line item include other fee income from loan acquisitions and the provision for repurchases expense, presented net.

Investments Fair Value Change47

Investments Fair Value Changes, Net (Tables)	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Schedule Of Investments Fair Value Changes, Net	The following table presents the components of Investment fair value changes, net, recorded in our consolidated statements of income for the three months ended March 31, 2016 and 2015 . Table 19.1 – Investment Activities Three Months Ended March 31, (In Thousands) 2016 2015 Investment fair value changes, net Changes in fair value of: Residential loans held-for-investment, at Redwood $ 23,463 $ 1,980 Trading securities (5,601 ) 270 Net investments in consolidated Sequoia entities (1,580 ) (1,093 ) Risk sharing investments (10 ) (928 ) Risk management derivatives (35,810 ) (1,374 ) Investment Fair Value Changes, Net $ (19,538 ) $ (1,145 )

Operating Expenses (Tables)

Operating Expenses (Tables)	3 Months Ended
	Mar. 31, 2016
Other Income and Expenses [Abstract]
Components of Operating Expenses	Components of our operating expenses for the three months ended March 31, 2016 and 2015 are presented in the following table. Table 20.1 – Components of Operating Expenses Three Months Ended March 31, (In Thousands) 2016 2015 Fixed compensation expense $ 7,894 $ 9,155 Variable compensation expense 1,760 3,991 Equity compensation expense 2,332 2,738 Total compensation expense 11,986 15,884 Systems and consulting 2,622 2,122 Loan acquisition costs (1) 1,601 2,324 Office costs 1,380 1,232 Accounting and legal 985 1,577 Corporate costs 466 526 Other operating expenses 753 1,398 Operating expenses before restructuring charges $ 19,793 $ 25,063 Restructuring charges (2) 10,659 — Total Operating Expenses $ 30,452 $ 25,063 (1) Loan acquisition costs primarily includes underwriting and due diligence costs related to the acquisition of residential loans held-for-sale at fair value. (2) For the three month months ended March 31, 2016 , restructuring charges included $5 million of fixed compensation expense and $4 million of equity compensation expense related to one-time termination benefits, as well as $2 million of other contract termination costs, associated with the restructuring of our conforming and commercial mortgage banking operations and related charges associated with the departure of Redwood's President announced in the first quarter of 2016. See Note 11 for further discussion on restructuring charges.

Taxes (Tables)

Taxes (Tables)	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
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 March 31, 2016 and 2015 . Table 21.1 – Reconciliation of Statutory Tax Rate to Effective Tax Rate March 31, 2016 March 31, 2015 Federal statutory rate 34.0 % 34.0 % State statutory rate, net of Federal tax effect 7.2 % 7.2 % Differences in taxable (loss) income from GAAP income (74.0 )% (44.7 )% Change in valuation allowance 92.0 % 11.9 % Dividends paid deduction (59.0 )% (64.4 )% Effective Tax Rate 0.2 % (56.0 )%

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Financial Information by Segment	The following tables present financial information by segment for the three months ended March 31, 2016 and 2015 . Table 22.1 – Business Segment Financial Information Three Months Ended March 31, 2016 (In Thousands) Residential Mortgage Banking Residential Investments Commercial Corporate/ Total Interest income $ 7,869 $ 39,936 $ 9,581 $ 4,942 $ 62,328 Interest expense (3,289 ) (4,953 ) (2,952 ) (12,756 ) (23,950 ) Net interest income (loss) 4,580 34,983 6,629 (7,814 ) 38,378 Reversal of provision for loan losses — — (289 ) — (289 ) Non-interest income Mortgage banking activities, net 9,280 — (2,062 ) — 7,218 MSR income (loss), net — 6,281 — — 6,281 Investment fair value changes, net — (17,765 ) (137 ) (1,636 ) (19,538 ) Other income — 955 — — 955 Realized gains, net — 9,246 — 292 9,538 Total non-interest income, net 9,280 (1,283 ) (2,199 ) (1,344 ) 4,454 Direct operating expenses (1) (5,321 ) (1,861 ) (1,602 ) (21,668 ) (30,452 ) Provision for income taxes — (28 ) — — (28 ) Segment Contribution $ 8,539 $ 31,811 $ 2,539 $ (30,826 ) Net Income $ 12,063 Non-cash amortization income (expense) $ (43 ) $ 8,068 $ (16 ) $ (990 ) $ 7,019 (1) For the three months ended March 31, 2016 , charges associated with the restructuring of our conforming residential mortgage loan operations and commercial operations are presented under the Corporate/Other column. See Note 11 for further discussion of these restructuring charges. Three Months Ended March 31, 2015 (In Thousands) Residential Mortgage Banking Residential Investments Commercial Corporate/ Total Interest income $ 15,795 $ 30,012 $ 10,914 $ 7,025 $ 63,746 Interest expense (3,778 ) (2,810 ) (3,489 ) (13,884 ) (23,961 ) Net interest income (loss) 12,017 27,202 7,425 (6,859 ) 39,785 Provision for loan losses — — (206 ) — (206 ) Non-interest income Mortgage banking activities, net 2,215 — (292 ) — 1,923 MSR income (loss), net — (10,924 ) — — (10,924 ) Investment fair value changes, net 2 (19 ) — (1,128 ) (1,145 ) Other income — 809 — — 809 Realized gains, net — 4,306 — — 4,306 Total non-interest income, net 2,217 (5,828 ) (292 ) (1,128 ) (5,031 ) Direct operating expenses (10,903 ) (1,118 ) (3,482 ) (9,560 ) (25,063 ) Benefit from income taxes 8 3,510 853 945 5,316 Segment Contribution $ 3,339 $ 23,766 $ 4,298 $ (16,602 ) Net Income $ 14,801 Non-cash amortization income (expense) $ (46 ) $ 9,838 $ (49 ) $ (981 ) $ 8,762
Schedule of Corporate and Other	The following tables present the components of Corporate/Other for the three months ended March 31, 2016 and 2015 . Table 22.2 – Components of Corporate/Other Three Months Ended March 31, 2016 2015 (In Thousands) Legacy VIEs (1) Other Total Legacy VIEs (1) Other Total Interest income $ 4,777 $ 165 $ 4,942 $ 7,018 $ 7 $ 7,025 Interest expense (3,297 ) (9,459 ) (12,756 ) (4,482 ) (9,402 ) (13,884 ) Net interest income (loss) 1,480 (9,294 ) (7,814 ) 2,536 (9,395 ) (6,859 ) Reversal of provision for loan losses — — — — — — Non-interest income Mortgage banking activities, net — — — — — — MSR income (loss), net — — — — — — Investment fair value changes, net (1,580 ) (56 ) (1,636 ) (1,093 ) (35 ) (1,128 ) Other income — — — — — — Realized gains, net — 292 292 — — — Total non-interest income, net (1,580 ) 236 (1,344 ) (1,093 ) (35 ) (1,128 ) Direct operating expenses — (21,668 ) (21,668 ) — (9,560 ) (9,560 ) (Provision for) benefit from income taxes — — — — 945 945 Total $ (100 ) $ (30,726 ) $ (30,826 ) $ 1,443 $ (18,045 ) $ (16,602 )
Supplemental Information by Segment	The following table presents supplemental information by segment at March 31, 2016 and December 31, 2015 . Table 22.3 – Supplemental Segment Information (In Thousands) Residential Mortgage Banking Residential Investments Commercial Corporate/ Other Total March 31, 2016 Residential loans $ 441,076 $ 2,343,953 $ — $ 930,027 $ 3,715,056 Commercial loans — — 363,893 — 363,893 Real estate securities — 909,569 10,358 — 919,927 Mortgage servicing rights — 126,620 — — 126,620 Total assets 472,213 3,552,629 377,452 1,324,586 5,726,880 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 3,140,604 415,716 1,316,235 6,220,047

Organization (Detail)

Organization (Detail)	3 Months Ended
	Mar. 31, 2016Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	3

Summary of Significant Accoun52

Summary of Significant Accounting Policies - Offsetting of Financial Assets, Liabilities, and Collateral (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Assets	$ 27,031	$ 11,722
Gross Amounts Offset in Consolidated Balance Sheet		0
Net Amounts of Assets Presented in Consolidated Balance Sheet	27,031	11,722
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	(20,265)	(7,549)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received	(4,581)	(2,930)
Net Amount	2,185	1,243
Gross Amounts of Recognized Liabilities	(901,338)	(1,778,711)
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet	(901,338)	(1,778,711)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	824,440	1,724,930
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged	76,178	53,167
Net Amount	(720)	(614)
Interest rate agreements
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Assets	24,188	7,781
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in Consolidated Balance Sheet	24,188	7,781
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	(18,926)	(5,651)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received	(4,581)	(1,917)
Net Amount	681	213
Gross Amounts of Recognized Liabilities	(92,100)	(58,366)
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet	(92,100)	(58,366)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	18,926	5,651
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged	73,174	52,715
Net Amount	0	0
Credit Default Index Swaps
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Assets		1,207
Gross Amounts Offset in Consolidated Balance Sheet		0
Net Amounts of Assets Presented in Consolidated Balance Sheet		1,207
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		0
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received		(720)
Net Amount		487
TBAs
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Assets	2,843	2,734
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in Consolidated Balance Sheet	2,843	2,734
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	(1,339)	(1,898)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received	0	(293)
Net Amount	1,504	543
Gross Amounts of Recognized Liabilities	(3,739)	(2,519)
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet	(3,739)	(2,519)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	1,339	1,898
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged	1,680	7
Net Amount	(720)	(614)
Futures
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	(1,324)	(445)
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet	(1,324)	(445)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	0	0
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged	1,324	445
Net Amount	0	0
Loan warehouse debt
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	(368,679)	(1,023,740)
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet	(368,679)	(1,023,740)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	368,679	1,023,740
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	(435,496)	(693,641)
Gross Amounts Offset in Consolidated Balance Sheet	0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet	(435,496)	(693,641)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments	435,496	693,641
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged	0	0
Net Amount	$ 0	$ 0

Summary of Significant Accoun53

Summary of Significant Accounting Policies - Debt Issuance Costs (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Long-term debt
Debt Instrument [Line Items]
Deferred debt issuance costs	$ 9,513	$ 10,438
Asset-backed Securities
Debt Instrument [Line Items]
Deferred debt issuance costs	$ 339	$ 542

Principles of Consolidation - A

Principles of Consolidation - Additional Information (Detail)	39 Months Ended
	Mar. 31, 2016Entity
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Number of securitization entities to which asset transferred	26

Principles of Consolidation -55

Principles of Consolidation - Assets and Liabilities of Consolidated Variable Interest Entity's (Detail) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016USD ($)Investment	Dec. 31, 2015USD ($)Investment
Variable Interest Entity [Line Items]
Assets	$ 1,102,195	$ 1,195,574
Liabilities	$ 959,464	$ 1,050,861
Number of VIEs | Investment	21	22
Sequoia
Variable Interest Entity [Line Items]
Assets	$ 936,096	$ 1,028,124
Liabilities	$ 907,542	$ 997,475
Number of VIEs | Investment	20	21
Commercial Securitization
Variable Interest Entity [Line Items]
Assets	$ 166,099	$ 167,450
Liabilities	$ 51,922	$ 53,386
Number of VIEs | Investment	1	1
Residential Loans Held for Investment
Variable Interest Entity [Line Items]
Assets	$ 930,027	$ 1,021,870
Residential Loans Held for Investment | Sequoia
Variable Interest Entity [Line Items]
Assets	930,027	1,021,870
Residential Loans Held for Investment | Commercial Securitization
Variable Interest Entity [Line Items]
Assets	0	0
Commercial Loans Held For Investment
Variable Interest Entity [Line Items]
Assets	164,626	166,016
Commercial Loans Held For Investment | Sequoia
Variable Interest Entity [Line Items]
Assets	0	0
Commercial Loans Held For Investment | Commercial Securitization
Variable Interest Entity [Line Items]
Assets	164,626	166,016
Real estate securities
Variable Interest Entity [Line Items]
Assets		0
Real estate securities | Sequoia
Variable Interest Entity [Line Items]
Assets		0
Real estate securities | Commercial Securitization
Variable Interest Entity [Line Items]
Assets		0
Restricted cash
Variable Interest Entity [Line Items]
Assets	283	365
Restricted cash | Sequoia
Variable Interest Entity [Line Items]
Assets	147	228
Restricted cash | Commercial Securitization
Variable Interest Entity [Line Items]
Assets	136	137
Accrued interest receivable
Variable Interest Entity [Line Items]
Assets	2,328	2,428
Accrued interest receivable | Sequoia
Variable Interest Entity [Line Items]
Assets	1,038	1,131
Accrued interest receivable | Commercial Securitization
Variable Interest Entity [Line Items]
Assets	1,290	1,297
Other Assets
Variable Interest Entity [Line Items]
Assets	4,931	4,895
Other Assets | Sequoia
Variable Interest Entity [Line Items]
Assets	4,884	4,895
Other Assets | Commercial Securitization
Variable Interest Entity [Line Items]
Assets	47	0
Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	761	804
Accrued interest payable | Sequoia
Variable Interest Entity [Line Items]
Liabilities	519	555
Accrued interest payable | Commercial Securitization
Variable Interest Entity [Line Items]
Liabilities	242	249
Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities		100
Accrued expenses and other liabilities | Sequoia
Variable Interest Entity [Line Items]
Liabilities		100
Accrued expenses and other liabilities | Commercial Securitization
Variable Interest Entity [Line Items]
Liabilities		0
Asset-backed Securities
Variable Interest Entity [Line Items]
Liabilities	958,703	1,049,957
Asset-backed Securities | Sequoia
Variable Interest Entity [Line Items]
Liabilities	907,023	996,820
Asset-backed Securities | Commercial Securitization
Variable Interest Entity [Line Items]
Liabilities	$ 51,680	$ 53,137

Principles of Consolidation - S

Principles of Consolidation - Securitization Activity Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Variable Interest Entity [Line Items]
MSRs recognized	$ 3,463	$ 15,675
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Principal balance of loans transferred	0	338,796
MSRs recognized	0	1,872
Variable Interest Entity, Not Primary Beneficiary | Trading Securities
Variable Interest Entity [Line Items]
Securities retained, at fair value	0	3,423
Variable Interest Entity, Not Primary Beneficiary | Available-for-sale Securities
Variable Interest Entity [Line Items]
Securities retained, at fair value	$ 0	$ 2,859

Principles of Consolidation - C

Principles of Consolidation - Cash Flows Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Variable Interest Entity [Line Items]
Proceeds from new transfers	$ 0	$ 341,716
MSR fees received	3,523	3,770
Funding of compensating interest	(79)	(90)
Cash flows received on retained securities	$ 11,191	$ 12,645

Principles of Consolidation -58

Principles of Consolidation - Assumptions Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Detail)	3 Months Ended
	Mar. 31, 2015
Subordinate Securities
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Credit loss assumptions	0.25%
Variable Interest Entity, Not Primary Beneficiary | Mortgage servicing rights
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%
Variable Interest Entity, Not Primary Beneficiary | Mortgage servicing rights | Minimum
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Prepayment rate	5.00%
Variable Interest Entity, Not Primary Beneficiary | Mortgage servicing rights | Maximum
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Prepayment rate	19.00%
Variable Interest Entity, Not Primary Beneficiary | Subordinate Securities
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Prepayment rate	8.00%
Discount rates	6.00%

Principles of Consolidation -59

Principles of Consolidation - Summary of Unconsolidated Variable Interest Entity's Sponsored by Redwood (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
On-balance sheet assets, at fair value:
Maximum loss exposure	$ 346,034	$ 588,396
Principal balance of loans outstanding	7,055,574	7,318,167
Principal balance of delinquent loans 30+ days delinquent	15,235	18,300
Interest-only, senior and subordinate securities, classified as trading
On-balance sheet assets, at fair value:
Securities	32,434	258,697
Senior and subordinate securities, classified as AFS
On-balance sheet assets, at fair value:
Securities	274,380	272,715
Mortgage servicing rights
On-balance sheet assets, at fair value:
Securities	$ 39,220	$ 56,984

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	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
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	$ 39,220	$ 56,984
Expected life (in years)	4 years	7 years
Prepayment speed assumption (annual CPR)	21.00%	11.00%
Decrease in fair value from:
10% adverse change	$ 2,423	$ 2,868
25% adverse change	$ 5,800	$ 6,119
Discount rate assumption	11.00%	11.00%
Decrease in fair value from:
100 basis point increase	$ 1,024	$ 2,711
200 basis point increase	2,012	4,745
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	$ 22,177	$ 248,570
Expected life (in years)	4 years	5 years
Prepayment speed assumption (annual CPR)	14.00%	10.00%
Decrease in fair value from:
10% adverse change	$ 1,297	$ 2,042
25% adverse change	$ 3,039	$ 4,810
Discount rate assumption	11.00%	5.00%
Decrease in fair value from:
100 basis point increase	$ 650	$ 10,029
200 basis point increase	$ 1,264	$ 19,365
Credit loss assumption	0.25%	0.25%
Decrease in fair value from:
10% higher losses	$ 15	$ 35
25% higher losses	38	86
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	22,000	31,000
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	$ 284,637	$ 282,842
Expected life (in years)	11 years	12 years
Prepayment speed assumption (annual CPR)	13.00%	12.00%
Decrease in fair value from:
10% adverse change	$ 969	$ 901
25% adverse change	$ 2,459	$ 2,278
Discount rate assumption	6.00%	6.00%
Decrease in fair value from:
100 basis point increase	$ 21,432	$ 21,981
200 basis point increase	$ 40,189	$ 41,156
Credit loss assumption	0.25%	0.25%
Decrease in fair value from:
10% higher losses	$ 1,213	$ 1,244
25% higher losses	$ 3,042	$ 3,129

Principles of Consolidation -61

Principles of Consolidation - Summary of Redwood's Interest in Third-Party Variable Interest Entity's (Detail) - Real Estate Securities $ in Thousands	Mar. 31, 2016USD ($)
Variable Interest Entity [Line Items]
Assets	$ 613,113
Senior
Variable Interest Entity [Line Items]
Assets	146,030
Re-REMIC
Variable Interest Entity [Line Items]
Assets	162,970
Subordinate
Variable Interest Entity [Line Items]
Assets	$ 304,113

Fair Value of Financial Instr62

Fair Value of Financial Instruments - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Dealer marks of securities	68.00%
Percentage of carrying value for which dealer quotes have been received	84.00%
Mortgage servicing rights
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 9
Mortgage servicing rights | Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Percentage difference of internal valuation than dealer marks	1.00%
Residential Subordinate Securities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 48
Residential Loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	1,190
Commercial Loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 38

Fair Value of Financial Instr63

Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values of Assets and Liabilities (Detail) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Assets
Trading securities		$ 221,571	$ 404,011
Available-for-sale securities		698,356	829,245
MSRs		126,620	191,976	[1]
Derivative assets	[1]	31,975	16,393
Pledged collateral		59,664	53,600
Liabilities
Derivative liabilities	[1]	97,468	62,794
Carrying Value
Assets
Trading securities		221,571	404,011
Available-for-sale securities		698,356	829,245
MSRs		126,620	191,976
Cash and cash equivalents		305,115	220,229
Restricted cash		2,137	5,567
Accrued interest receivable		19,766	23,290
Derivative assets		31,975	16,393
REO		4,884	4,896
Margin receivable		107,941	83,191
FHLBC stock		44,071	34,437
Guarantees asset		4,272	5,697
Pledged collateral			53,600
Liabilities
Short-term debt		804,175	1,855,003
Accrued interest payable		15,522	8,936
Margin payable		14,247	6,415
Guarantee obligation		24,896	22,704
Derivative liabilities		97,468	62,794
ABS issued, net, Fair value		907,023	996,820
ABS issued, net, Amortized cost		51,341	52,595
FHLBC long-term borrowings		1,999,999	1,343,023
Commercial secured borrowings		65,181	63,152
Convertible notes, net		479,798	483,119
Trust preferred securities and subordinated notes, net		138,454	138,443
Carrying Value | Residential Loans at Fair Value
Assets
Loans, held-for-sale		439,674	1,114,305
Carrying Value | Residential Loans at Lower of Cost or Fair Value
Assets
Loans, held-for-sale		1,402	1,433
Carrying Value | Residential Loans Held For Investment at Fair Value
Assets
Loans, held-for-investment		3,273,980	2,813,065
Carrying Value | Commercial Loans Held For Sale
Assets
Loans, held-for-sale			39,141
Loans, held-for-investment		0
Carrying Value | Commercial Loans Held-for-Investment, at Fair Value
Assets
Loans, held-for-investment		69,674	67,657
Carrying Value | Commercial Loans Held-for-Investment, at Amortized Cost
Assets
Loans, held-for-investment		294,219	295,849
Fair Value
Assets
Trading securities		221,571	404,011
Available-for-sale securities		698,356	829,245
MSRs		126,620	191,976
Cash and cash equivalents		305,115	220,229
Restricted cash		2,137	5,567
Accrued interest receivable		19,766	23,290
Derivative assets		31,975	16,393
REO		5,475	5,282
Margin receivable		107,941	83,191
FHLBC stock		44,071	34,437
Guarantees asset		4,272	5,697
Pledged collateral		59,664	53,600
Liabilities
Short-term debt		804,175	1,855,003
Accrued interest payable		15,522	8,936
Margin payable		14,247	6,415
Guarantee obligation		23,595	22,702
Derivative liabilities		97,468	62,794
ABS issued, net, Fair value		907,023	996,820
ABS issued, net, Amortized cost		51,680	53,137
FHLBC long-term borrowings		1,999,999	1,343,023
Commercial secured borrowings		65,181	63,152
Convertible notes, net		453,396	461,053
Trust preferred securities and subordinated notes, net		80,910	83,700
Fair Value | Residential Loans at Fair Value
Assets
Loans, held-for-sale		439,674	1,114,305
Fair Value | Residential Loans at Lower of Cost or Fair Value
Assets
Loans, held-for-sale		1,594	1,635
Fair Value | Residential Loans Held For Investment at Fair Value
Assets
Loans, held-for-investment		3,273,980	2,813,065
Fair Value | Commercial Loans Held For Sale
Assets
Loans, held-for-sale		0	39,141
Fair Value | Commercial Loans Held-for-Investment, at Fair Value
Assets
Loans, held-for-investment		69,674	67,657
Fair Value | Commercial Loans Held-for-Investment, at Amortized Cost
Assets
Loans, held-for-investment		$ 301,488	$ 300,824
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr64

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Assets
Trading securities		$ 221,571	$ 404,011
Available-for-sale securities		698,356	829,245
Derivative assets	[1]	31,975	16,393
MSRs		126,620	191,976	[1]
Pledged collateral		59,664	53,600
Liabilities
Derivative liabilities	[1]	97,468	62,794
Commercial secured borrowings		65,181	63,152
Fair Value, Measurements, Recurring
Assets
Trading securities		221,571	404,011
Available-for-sale securities		698,356	829,245
Derivative assets		31,975	16,393
MSRs		126,620	191,976
Pledged collateral		59,664	53,600
FHLBC stock		44,071	34,437
Guarantees asset		4,272	5,697
Liabilities
Derivative liabilities		97,468	62,794
Commercial secured borrowings		65,181	63,152
ABS issued		907,023	996,820
Fair Value, Measurements, Recurring | Residential Loans at Fair Value
Assets
Loans at fair value		3,713,654	3,927,370
Fair Value, Measurements, Recurring | Commercial Loans at Fair Value
Assets
Loans at fair value		69,674	106,798
Fair Value, Measurements, Recurring | Level 1
Assets
Trading securities			0
Available-for-sale securities			0
Derivative assets		2,843	2,734
MSRs			0
Pledged collateral		59,664	53,600
FHLBC stock		0	0
Liabilities
Derivative liabilities		5,063	2,963
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		24,188	8,988
MSRs			0
Pledged collateral			0
FHLBC stock		44,071	34,437
Liabilities
Derivative liabilities		92,100	58,368
Commercial secured borrowings			0
Fair Value, Measurements, Recurring | Level 2 | Residential Loans at Fair Value
Assets
Loans at fair value		1,387	129,819
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		221,571	404,011
Available-for-sale securities		698,356	829,245
Derivative assets		4,944	4,671
MSRs		126,620	191,976
Pledged collateral			0
FHLBC stock			0
Guarantees asset		4,272	5,697
Liabilities
Derivative liabilities		305	1,463
Commercial secured borrowings		65,181	63,152
ABS issued		907,023	996,820
Fair Value, Measurements, Recurring | Level 3 | Residential Loans at Fair Value
Assets
Loans at fair value		3,712,267	3,797,551
Fair Value, Measurements, Recurring | Level 3 | Commercial Loans at Fair Value
Assets
Loans at fair value		$ 69,674	$ 106,798
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr65

Fair Value of Financial Instruments - Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Commercial Secured Borrowings
Liabilities
Beginning balance	$ 63,152
Acquisitions	0
Sales	0
Principal paydowns	(155)
Gains (losses) in net income, net	2,171
Unrealized gains in OCI, net	0
Other settlements, net	13
Ending balance	65,181
Asset-backed Securities
Liabilities
Beginning balance	996,820
Acquisitions	0
Sales	0
Principal paydowns	(49,411)
Gains (losses) in net income, net	(33,515)
Unrealized gains in OCI, net	0
Other settlements, net	(6,871)
Ending balance	907,023
Residential Loans at Fair Value
Assets
Beginning balance	3,797,551
Acquisitions	1,020,846
Sales	(941,790)
Principal paydowns	(161,241)
Gains (losses) in net income, net	(7,934)
Unrealized gains in OCI, net	0
Other settlements, net	4,835
Ending balance	3,712,267
Commercial Loans
Assets
Beginning balance	106,798
Acquisitions	37,626
Sales	(77,183)
Principal paydowns	(171)
Gains (losses) in net income, net	2,604
Unrealized gains in OCI, net	0
Other settlements, net	0
Ending balance	69,674
Trading Securities
Assets
Beginning balance	404,011
Acquisitions	47,760
Sales	(220,123)
Principal paydowns	(5,718)
Gains (losses) in net income, net	(4,359)
Unrealized gains in OCI, net	0
Other settlements, net	0
Ending balance	221,571
Available-for-sale Securities
Assets
Beginning balance	829,245
Acquisitions	15,585
Sales	(125,911)
Principal paydowns	(16,683)
Gains (losses) in net income, net	17,314
Unrealized gains in OCI, net	(21,194)
Other settlements, net	0
Ending balance	698,356
Mortgage servicing rights
Assets
Beginning balance	191,976
Acquisitions	8,807
Sales	(29,559)
Principal paydowns	0
Gains (losses) in net income, net	(44,604)
Unrealized gains in OCI, net	0
Other settlements, net	0
Ending balance	126,620
Guarantee Asset
Assets
Beginning balance	5,697
Acquisitions	0
Sales	0
Principal paydowns	0
Gains (losses) in net income, net	(1,425)
Unrealized gains in OCI, net	0
Other settlements, net	0
Ending balance	4,272
Derivatives
Assets
Beginning balance	3,208
Acquisitions	0
Sales	0
Principal paydowns	0
Gains (losses) in net income, net	15,606
Unrealized gains in OCI, net	0
Other settlements, net	(14,175)
Ending balance	$ 4,639

Fair Value of Financial Instr66

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	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
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	$ 2,171	$ (1,509)
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	(33,515)	(2,946)
Residential Loans Held For Investment at Fair Value | Residential loans at Redwood
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	27,285	5,464
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]
Net gains (losses) attributable to level 3 assets still held included in net income	(35,656)	1,179
Guarantee Asset
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	(1,425)	(1,083)
Commercial Loans at Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	2,171	2,959
Trading Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	(6,135)	(13,790)
Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	(30,834)	(11,769)
Loan Purchase Commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	$ 4,644	$ 7,422

Fair Value of Financial Instr67

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Detail) - Fair Value, Measurements, Nonrecurring $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Residential loans, at lower of cost or fair value	$ 1,076
REO	1,285
Guarantee obligations	928
Level 3
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Residential loans, at lower of cost or fair value	1,076
REO	1,285
Guarantee obligations	928
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	(16)
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	$ (252)

Fair Value of Financial Instr68

Fair Value of Financial Instruments - Market Valuation Adjustments, Net (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	$ 6,281	$ (10,924)
Total Market gains and losses, net	(15,848)	(19,435)
Loan Purchase and Forward Sales Commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Market valuations gains and losses, net	13,000	18,000
Mortgage banking activities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Market valuations gains and losses, net	7,237	1,227
Mortgage banking activities | Residential Loans at Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Market valuations gains and losses, net	5,439	2,056
Mortgage banking activities | Loan Purchase and Forward Sales Commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Market valuations gains and losses, net	12,635	18,256
Mortgage banking activities | Commercial Loans at Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Market valuations gains and losses, net	433	5,857
Mortgage banking activities | Consolidated Sequoia entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Market valuations gains and losses, net	1,484	(14,359)
Mortgage banking activities | Risk managment derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Market valuations gains and losses, net	(12,754)	(10,583)
Investment activities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Market valuations gains and losses, net	(19,538)	(1,145)
Investment activities | Consolidated Sequoia entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Market valuations gains and losses, net	(1,580)	(1,093)
Investment activities | Residential loans held-for-investment, at Redwood
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Market valuations gains and losses, net	23,463	1,980
Investment activities | Real estate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Market valuations gains and losses, net	(5,601)	270
Investment activities | Risk managment derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Market valuations gains and losses, net	(35,810)	(1,374)
Investment activities | Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Market valuations gains and losses, net	(10)	(928)
MSR Income (loss), net, including risk management derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	(3,547)	(19,517)
MSR Income (loss), net, including risk management derivatives | Risk managment derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	41,057	0
MSR Income (loss), net, 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	$ (44,604)	$ (19,517)

Fair Value of Financial Instr69

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)	3 Months Ended
	Mar. 31, 2016USD ($)$ / loan
Loan Purchase Commitments | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate	1.30%
Loan Purchase Commitments | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate	1.80%
Loan Purchase Commitments | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate	1.54%
Asset-backed Securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 907,023,000
Asset-backed Securities | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	5.00%
Prepayment rate	5.00%
Credit support	0.00%
Loss severity	20.00%
Default rate	1.00%
Asset-backed Securities | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	9.00%
Prepayment rate	20.00%
Credit support	33.00%
Loss severity	32.00%
Default rate	12.00%
Asset-backed Securities | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	5.00%
Prepayment rate	12.00%
Credit support	9.00%
Loss severity	27.00%
Default rate	7.00%
Commercial Secured Borrowings
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 65,181,000
Commercial Secured Borrowings | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate	2.12%
Credit support	25.00%
Commercial Secured Borrowings | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate	2.12%
Credit support	25.00%
Commercial Secured Borrowings | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate	2.12%
Credit support	25.00%
Residential Loans Priced To Securitization and Whole Loan Market, Uncommitted to Sell
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 2,494,912,000
Residential Loans Priced To Securitization and Whole Loan Market, Uncommitted to Sell | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to TBA (usd per loan) | $ / loan	3.13
Residential Loans Priced To Securitization and Whole Loan Market, Uncommitted to Sell | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to TBA (usd per loan) | $ / loan	4.35
Residential Loans Priced To Securitization and Whole Loan Market, Uncommitted to Sell | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to TBA (usd per loan) | $ / loan	4.12
Residential Jumbo Hybrid Loans Priced To Whole Loan Market Uncommitted To Sell
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 83,124,000
Residential Jumbo Hybrid Loans Priced To Whole Loan Market Uncommitted To Sell | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate	15.00%
Spread to swap rate	1.30%
Residential Jumbo Hybrid Loans Priced To Whole Loan Market Uncommitted To Sell | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate	15.00%
Spread to swap rate	1.80%
Residential Jumbo Hybrid Loans Priced To Whole Loan Market Uncommitted To Sell | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate	15.00%
Spread to swap rate	1.51%
Residential Loans Priced To Whole Loan Market and Committed to Sell
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 204,204,000
Residential Loans Priced To Whole Loan Market and Committed to Sell | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Committed Sales Price | $ / loan	101.91
Residential Loans Priced To Whole Loan Market and Committed to Sell | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Committed Sales Price | $ / loan	102.30
Residential Loans Priced To Whole Loan Market and Committed to Sell | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Committed Sales Price | $ / loan	102.14
Residential Loans Held For Investment at Fair Value
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 930,027,000
Residential Loans at Lower of Cost or Fair Value
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,076,000
Residential Loans at Lower of Cost or Fair Value | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity	15.00%
Residential Loans at Lower of Cost or Fair Value | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity	30.00%
Residential Loans at Lower of Cost or Fair Value | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity	29.00%
Commercial Loans at Fair Value
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 69,674,000
Commercial Loans at Fair Value | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate	2.20%
Credit support	25.00%
Commercial Loans at Fair Value | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate	2.20%
Credit support	25.00%
Commercial Loans at Fair Value | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Spread to swap rate	2.20%
Credit support	25.00%
Investment Securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 919,927,000
Investment Securities | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	5.00%
Prepayment rate	1.00%
Credit support	0.00%
Loss severity	20.00%
Default rate	0.00%
Investment Securities | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	12.00%
Prepayment rate	35.00%
Credit support	48.00%
Loss severity	65.00%
Default rate	35.00%
Investment Securities | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	6.00%
Prepayment rate	14.00%
Credit support	4.00%
Loss severity	23.00%
Default rate	3.00%
Mortgage servicing rights
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 126,620,000
Mortgage servicing rights | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	8.00%
Prepayment rate	4.00%
Per loan annual cost to service	$ 72
Mortgage servicing rights | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	13.00%
Prepayment rate	60.00%
Per loan annual cost to service	$ 82
Mortgage servicing rights | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	10.00%
Prepayment rate	15.00%
Per loan annual cost to service	$ 78
Guarantee asset
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 4,272,000
Guarantee asset | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	11.00%
Prepayment rate	19.00%
Guarantee asset | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	11.00%
Prepayment rate	19.00%
Guarantee asset | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	11.00%
Prepayment rate	19.00%
REO
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,285,000
REO | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity	11.00%
REO | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity	93.00%
REO | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity	35.00%
Loan Purchase Commitments
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 4,639,000
Loan Purchase Commitments | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate	15.00%
Whole loan spread to TBA (usd per loan) | $ / loan	3.35
MSR Multiple	0.3
Fallout rate	2.00%
Loan Purchase Commitments | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate	15.00%
Whole loan spread to TBA (usd per loan) | $ / loan	4.35
MSR Multiple	6.6
Fallout rate	98.00%
Loan Purchase Commitments | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate	15.00%
Whole loan spread to TBA (usd per loan) | $ / loan	4.16
MSR Multiple	2.8
Fallout rate	44.00%

Residential Loans - Summary of

Residential Loans - Summary of Classifications and Carrying Value of Residential Loans (Detail) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Mortgage Loans on Real Estate [Line Items]
Residential loans		$ 3,715,056	$ 3,928,803
Residential Loans Held For Sale
Mortgage Loans on Real Estate [Line Items]
Residential loans	[1]	441,076	1,115,738
Residential Loans at Fair Value
Mortgage Loans on Real Estate [Line Items]
Residential loans		440,000	1,110,000
Residential Loans at Fair Value | Conforming Loan
Mortgage Loans on Real Estate [Line Items]
Residential loans		1,387	129,819
Residential Loans at Fair Value | Jumbo Loan
Mortgage Loans on Real Estate [Line Items]
Residential loans		438,287	984,486
Residential Loans at Lower of Cost or Fair Value
Mortgage Loans on Real Estate [Line Items]
Residential loans		1,402	1,433
Residential Loans Held For Investment at Fair Value
Mortgage Loans on Real Estate [Line Items]
Residential loans			1,790,000
Residential Loans Held For Investment at Fair Value | Jumbo Loan
Mortgage Loans on Real Estate [Line Items]
Residential loans		3,273,980	2,813,065
Redwood
Mortgage Loans on Real Estate [Line Items]
Residential loans		2,785,029	2,906,933
Redwood | Residential Loans Held For Sale
Mortgage Loans on Real Estate [Line Items]
Residential loans		441,076	1,115,738
Redwood | Residential Loans at Fair Value | Conforming Loan
Mortgage Loans on Real Estate [Line Items]
Residential loans		1,387	129,819
Redwood | Residential Loans at Fair Value | Jumbo Loan
Mortgage Loans on Real Estate [Line Items]
Residential loans		438,287	984,486
Redwood | Residential Loans at Lower of Cost or Fair Value
Mortgage Loans on Real Estate [Line Items]
Residential loans		1,402	1,433
Redwood | Residential Loans Held For Investment at Fair Value | Jumbo Loan
Mortgage Loans on Real Estate [Line Items]
Residential loans		2,343,953	1,791,195
Sequoia
Mortgage Loans on Real Estate [Line Items]
Residential loans		930,027	1,021,870
Sequoia | Residential Loans Held For Sale
Mortgage Loans on Real Estate [Line Items]
Residential loans		0	0
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		$ 930,027	$ 1,021,870
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Residential Loans - Additional

Residential Loans - Additional Information (Detail) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016USD ($)loanContract	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)loanContract
Mortgage Loans on Real Estate [Line Items]
Transfers from loans held-for-sale to loans held-for-investment	$ 660,818	$ 447,840
Transfers from loans held-for-investment to loans held-for-sale	54,747	0
Principal balance of loans sold during period	1,240,000	2,200,000
Carrying value of loans	3,715,056		$ 3,928,803
Redwood
Mortgage Loans on Real Estate [Line Items]
Carrying value of loans	2,785,029		2,906,933
Sequoia
Mortgage Loans on Real Estate [Line Items]
Carrying value of loans	$ 930,027		$ 1,021,870
Fixed-rate loans
Mortgage Loans on Real Estate [Line Items]
Weighted average coupon rate	4.16%
Residential Loans
Mortgage Loans on Real Estate [Line Items]
Principal value of loans purchased	$ 1,190,000	2,400,000
Residential Loans at Fair Value
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	588		1,763
Loan Principal	$ 429,000		$ 1,090,000
Valuation adjustments	5,000	2,000
Loan pledged as collateral	414,000
Carrying value of loans	440,000		$ 1,110,000
Loans held-for-investment, in foreclosure	$ 1,000
Residential Loans at Lower of Cost or Fair Value
Mortgage Loans on Real Estate [Line Items]
Number of loans	9		9
Loan Principal	$ 2,000		$ 2,000
Financing Receivable, Number Of Loans In Foreclosure | loan	1
Carrying value of loans	$ 1,402		1,433
Residential Loans at Lower of Cost or Fair Value | Redwood
Mortgage Loans on Real Estate [Line Items]
Carrying value of loans	1,402		1,433
Residential Loans at Lower of Cost or Fair Value | Sequoia
Mortgage Loans on Real Estate [Line Items]
Carrying value of loans	$ 0		$ 0
Residential Loans Held For Investment at Fair Value
Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	3,096		2,398
Loan Principal	$ 2,280,000		$ 1,760,000
Valuation adjustments	23,000	2,000
Transfers from loans held-for-sale to loans held-for-investment	660,000	448,000
Transfers from loans held-for-investment to loans held-for-sale	$ 54,000	0
Carrying value of loans			$ 1,790,000
Weighted average original Fair Isaac Corporation (FICO) score	772
Weighted average original loan-to-value (LTV)	66.00%
Percentage of fixed-rate loans	99.00%
Residential Loans Held For Investment at Fair Value | Sequoia
Mortgage Loans on Real Estate [Line Items]
Number of loans	4,221		4,545
Weighted average original Fair Isaac Corporation (FICO) score	729
Weighted average original loan-to-value (LTV)	66.00%
Loans held-for-investment, delinquent greater than 90 days	$ 51,000		$ 59,000
Loans held-for-investment, in foreclosure	26,000		32,000
Valuation adjustments	$ (36,000)	$ 3,000
Residential Loans Held For Investment at Fair Value | Hybrid loans
Mortgage Loans on Real Estate [Line Items]
Weighted average coupon rate	4.00%
Residential Loans Held for Investment | Sequoia
Mortgage Loans on Real Estate [Line Items]
Loan Principal	$ 1,060,000		1,120,000
Carrying value of loans	930,000		$ 1,020,000
Mortgage servicing rights
Mortgage Loans on Real Estate [Line Items]
Servicing Asset at Amortized Cost	$ 1,880,000
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Loans at Fair Value
Mortgage Loans on Real Estate [Line Items]
Financing Receivable, Number Of Loans Past Due 90 Days Or More | loan	0		2
Financing Receivable, Number Of Loans In Foreclosure | loan	1
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Loans at Lower of Cost or Fair Value
Mortgage Loans on Real Estate [Line Items]
Financing Receivable, Number Of Loans Past Due 90 Days Or More | loan	2		2,000
Jumbo Loan | Residential Loans at Fair Value
Mortgage Loans on Real Estate [Line Items]
Carrying value of loans	$ 438,287		$ 984,486
Jumbo Loan | Residential Loans at Fair Value | Redwood
Mortgage Loans on Real Estate [Line Items]
Carrying value of loans	438,287		984,486
Jumbo Loan | Residential Loans at Fair Value | Sequoia
Mortgage Loans on Real Estate [Line Items]
Carrying value of loans	0		0
Jumbo Loan | Residential Loans Held For Investment at Fair Value
Mortgage Loans on Real Estate [Line Items]
Carrying value of loans	3,273,980		2,813,065
Jumbo Loan | Residential Loans Held For Investment at Fair Value | Redwood
Mortgage Loans on Real Estate [Line Items]
Carrying value of loans	2,343,953		1,791,195
Jumbo Loan | Residential Loans Held For Investment at Fair Value | Sequoia
Mortgage Loans on Real Estate [Line Items]
Carrying value of loans	930,027		$ 1,021,870
Residential Loans | FHLB Chicago
Mortgage Loans on Real Estate [Line Items]
Loans pledged as collateral under borrowing agreement with FHLBC	$ 2,340,000
Originated Between 2013 and 2016 | Residential Loans Held For Investment at Fair Value
Mortgage Loans on Real Estate [Line Items]
Percentage of loan portfolio originated in year	93.00%
Originated 2012 and prior years | Residential Loans Held For Investment at Fair Value
Mortgage Loans on Real Estate [Line Items]
Percentage of loan portfolio originated in year	7.00%

Commercial Loans - Additional I

Commercial Loans - Additional Information (Details) $ in Thousands		3 Months Ended
		Mar. 31, 2016USD ($)loan	Mar. 31, 2015USD ($)loan	Dec. 31, 2015USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Senior commercial loans, held for sale		$ 1,245,068	$ 2,558,425
Aggregate fair value		363,893		$ 402,647
Sale of loan for third party, held for sale		$ 1,336,617	$ 2,455,452
Commercial Loans Held For Sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan		0	4
Principal balance				39,000
Aggregate fair value	[1]	$ 0		39,141
Sale of loan for third party, held for sale		76,000	$ 203,000
Valuation adjustments		0	$ 6,000
Commercial Loans Held-for-Investment, at Amortized Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Financed through Securitization		$ 165,000		166,000
Number of loans | loan		58	59
Aggregate fair value		$ 294,219		295,849
Loan pledged as collateral		7,000		135,000
Recorded investment in loans		$ 301,609		302,951
Commercial Loans Held-for-Investment, at Amortized Cost | Originated During 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of loan portfolio originated in year		7.00%
Commercial Loans Held-for-Investment, at Amortized Cost | Originated During 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of loan portfolio originated in year		19.00%
Commercial Loans Held-for-Investment, at Amortized Cost | Originated During 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of loan portfolio originated in year		16.00%
Commercial Loans Held-for-Investment, at Amortized Cost | Originated During 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of loan portfolio originated in year		31.00%
Commercial Loans Held-for-Investment, at Amortized Cost | Originated During 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of loan portfolio originated in year		23.00%
Commercial Loans Held-for-Investment, at Amortized Cost | Originated During 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of loan portfolio originated in year		4.00%
Commercial Loans Held For Investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan		3
Principal balance		$ 67,000		67,000
Loans at fair value		69,674		67,657
Aggregate fair value	[1]	363,893		363,506
Commercial Loans Held-for-Investment, at Fair Value, B-Notes
Accounts, Notes, Loans and Financing Receivable [Line Items]
Aggregate fair value		4,000		$ 5,000
Commercial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Senior commercial loans, held for sale		$ 38,000	$ 93,000
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Commercial Loans - Summary of C

Commercial Loans - Summary of Classifications and Carrying Value of Commercial Loans (Details) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans		$ 363,893	$ 402,647
Commercial Loans Held For Sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans	[1]	0	39,141
Commercial Loans Held For Investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans	[1]	363,893	363,506
Loans at fair value		69,674	67,657
Commercial Loans Held-for-Investment, at Amortized Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans		294,219	295,849
Loans Financed through Securitization		$ 165,000	$ 166,000
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Commercial Loans - Commercial L

Commercial Loans - Commercial Loans Held-For-Investment at Amortized Cost (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying Value	$ 363,893	$ 402,647
Commercial Loans Held-for-Investment, at Amortized Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Principal balance	305,517	307,047
Unamortized discount, net	(3,908)	(4,096)
Recorded investment in loans	301,609	302,951
Allowance for loan losses	(7,390)	(7,102)
Carrying Value	$ 294,219	$ 295,849

Commercial Loans - Commercial75

Commercial Loans - Commercial Loans Held for Investment by Risk Category (Details) - Commercial Loans Held For Investment - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans held for investment	$ 305,517	$ 307,047
Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans held for investment	260,599	272,768
Watch List
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans held for investment	$ 44,918	$ 34,279

Commercial Loans - Summary of A

Commercial Loans - Summary of Activity in Allowance for Commercial Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Provision for loan losses	$ (289)	$ (206)
Commercial Loans
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	7,102	7,457
Provision for loan losses	(288)	(205)
Balance at End of Period	$ 7,390	$ 7,662

Commercial Loans - Commercial77

Commercial Loans - Commercial Loans Collectively Evaluated for Impairment (Details) - Commercial Loans - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Principal balance	$ 305,517	$ 307,047
Recorded investment	301,609	302,951
Related allowance	$ 7,390	$ 7,102

Real Estate Securities - Additi

Real Estate Securities - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016USD ($)Investment	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)Investment
Investment Holdings [Line Items]
Trading securities	$ 221,571,000		$ 404,011,000
Trading securities acquired	50,000,000	$ 23,000,000
Trading securities sold	218,000,000	3,000,000
Adjustment to valuation of trading securities	(4,000,000)	(14,000,000)
Available-for-sale securities purchased	16,000,000	10,000,000
Available-for-sale securities sold	126,000,000	91,000,000
Net realized gains	$ 9,246,000	$ 4,306,000
Number of AFS securities | Investment	199		224
Number of securities in unrealized loss position | Investment	28		32
Number of securities in a continuous unrealized loss position for twelve consecutive months or longer | Investment	13		15
OTTI losses on AFS securities	$ 0
Trading Securities Pledged as Collateral	142,000,000
Senior Securities
Investment Holdings [Line Items]
Trading securities	27,591,000		$ 254,351,000
Interest Only Securities
Investment Holdings [Line Items]
Trading securities	28,000,000		37,000,000
Subordinate Securities
Investment Holdings [Line Items]
Trading securities	193,980,000		149,660,000
Trading Securities | Residential Senior Securities
Investment Holdings [Line Items]
Unpaid principal balance	0		217,000,000
Trading Securities | Residential Subordinate Securities
Investment Holdings [Line Items]
Unpaid principal balance	212,000,000		168,000,000
Non-prime | Senior Securities
Investment Holdings [Line Items]
Trading securities	5,414,000		5,781,000
Non-prime | Subordinate Securities
Investment Holdings [Line Items]
Trading securities	1,000,000		1,000,000
Residential
Investment Holdings [Line Items]
Securities pledged as collateral	531,000,000		$ 827,000,000
Marketable securities, less than five years (less than)	2,000,000
Marketable securities, due from five to ten years	0
Residential | Available-for-sale Securities
Investment Holdings [Line Items]
Securities pledged as collateral	$ 389,000,000

Real Estate Securities - Fair V

Real Estate Securities - Fair Values of Real Estate Securities (Detail) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Trading		$ 221,571	$ 404,011
Available-for-sale		698,356	829,245
Total Real Estate Securities	[1]	$ 919,927	$ 1,233,256
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Real Estate Securities - Tradin

Real Estate Securities - Trading Securities by Collateral Type (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Investment Holdings [Line Items]
Trading securities	$ 221,571	$ 404,011
Senior Securities
Investment Holdings [Line Items]
Trading securities	27,591	254,351
Senior Securities | Prime
Investment Holdings [Line Items]
Trading securities	22,177	248,570
Senior Securities | Non-prime
Investment Holdings [Line Items]
Trading securities	5,414	5,781
Subordinate Securities
Investment Holdings [Line Items]
Trading securities	193,980	149,660
Subordinate Securities | Non-prime
Investment Holdings [Line Items]
Trading securities	1,000	1,000
Subordinate Securities | Prime mezzanine
Investment Holdings [Line Items]
Trading securities	144,317	136,140
Subordinate Securities | Prime subordinate
Investment Holdings [Line Items]
Trading securities	49,663	13,520
Subordinate Securities | CRT securities
Investment Holdings [Line Items]
Trading securities	$ 62,000	$ 25,000

Real Estate Securities - Availa

Real Estate Securities - Available for Sale Securities by Collateral Type (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Investment Holdings [Line Items]
Available-for-sale securities	$ 698,356	$ 829,245
Senior Securities
Investment Holdings [Line Items]
Available-for-sale securities	140,616	279,251
Senior Securities | Prime
Investment Holdings [Line Items]
Available-for-sale securities	111,523	210,993
Senior Securities | Non-prime
Investment Holdings [Line Items]
Available-for-sale securities	29,093	68,258
Re-REMIC
Investment Holdings [Line Items]
Available-for-sale securities	162,970	165,064
Subordinate Securities
Investment Holdings [Line Items]
Available-for-sale securities	394,770	384,930
Subordinate Securities | Non-prime
Investment Holdings [Line Items]
Available-for-sale securities	1,000	1,000
Subordinate Securities | Prime mezzanine
Investment Holdings [Line Items]
Available-for-sale securities	225,787	224,624
Subordinate Securities | Prime subordinate
Investment Holdings [Line Items]
Available-for-sale securities	$ 168,983	$ 160,306

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	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	$ 698,356	$ 829,245
Senior Securities
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	140,616	279,251
Senior Securities | Prime
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	111,523	210,993
Senior Securities | Non-prime
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	29,093	68,258
Re-REMIC
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	162,970	165,064
Subordinate Securities
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	394,770	384,930
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	845,732	973,227
Credit reserve	(48,547)	(48,869)
Unamortized discount, net	(219,630)	(237,107)
Amortized cost	577,555	687,251
Gross unrealized gains	127,014	147,001
Gross unrealized losses	(6,213)	(5,007)
Carrying Value	698,356	829,245
Residential | Senior Securities | Prime
Schedule of Available-for-sale Securities [Line Items]
Principal balance	120,577	217,605
Credit reserve	(1,108)	(1,305)
Unamortized discount, net	(13,491)	(22,079)
Amortized cost	105,978	194,221
Gross unrealized gains	9,326	20,263
Gross unrealized losses	(3,781)	(3,491)
Carrying Value	111,523	210,993
Residential | Senior Securities | Non-prime
Schedule of Available-for-sale Securities [Line Items]
Principal balance	31,781	75,591
Credit reserve	(687)	(5,101)
Unamortized discount, net	(3,262)	(8,395)
Amortized cost	27,832	62,095
Gross unrealized gains	1,482	6,249
Gross unrealized losses	(221)	(86)
Carrying Value	29,093	68,258
Residential | Re-REMIC
Schedule of Available-for-sale Securities [Line Items]
Principal balance	189,146	189,782
Credit reserve	(11,258)	(10,332)
Unamortized discount, net	(66,586)	(71,670)
Amortized cost	111,302	107,780
Gross unrealized gains	51,668	57,284
Gross unrealized losses	0	0
Carrying Value	162,970	165,064
Residential | Subordinate Securities
Schedule of Available-for-sale Securities [Line Items]
Principal balance	504,228	490,249
Credit reserve	(35,494)	(32,131)
Unamortized discount, net	(136,291)	(134,963)
Amortized cost	332,443	323,155
Gross unrealized gains	64,538	63,205
Gross unrealized losses	(2,211)	(1,430)
Carrying Value	$ 394,770	$ 384,930

Real Estate Securities - Change

Real Estate Securities - Changes of Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities (Detail) - Residential $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Credit Reserve
Beginning balance	$ 48,869
Amortization of net discount	0
Realized credit losses	(1,955)
Acquisitions	4,383
Sales, calls, other	(4,252)
Transfers to (release of) credit reserves, net	1,502
Ending Balance	48,547
Unamortized Discount Net
Beginning balance	237,107
Amortization of net discount	(8,068)
Realized credit losses	0
Acquisitions	5,110
Sales, calls, other	(13,017)
Transfers to (release of) credit reserves, net	(1,502)
Ending Balance	$ 219,630

Real Estate Securities - Comp84

Real Estate Securities - Components of Carrying Value of Residential Available for Sale Securities in Unrealized Loss Position (Detail) - Residential - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Consecutive Months Amortized Cost	$ 39,132	$ 87,718
Less Than 12 Consecutive Months Gross Unrealized Losses	(1,350)	(1,972)
Less Than 12 Consecutive Months Fair Value	37,782	85,746
12 Consecutive Months or Longer Amortized Cost	76,241	77,539
12 Consecutive Months or Longer Gross Unrealized Losses	(4,863)	(3,035)
12 Consecutive Months or Longer Fair Value	$ 71,378	$ 74,504

Real Estate Securities - Summar

Real Estate Securities - Summary of Significant Valuation Assumptions for Available for Sale Securities (Detail)	3 Months Ended
	Mar. 31, 2016
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
Schedule of Available-for-sale Securities [Line Items]
Projected default rate	5.00%
Non-prime | Minimum
Schedule of Available-for-sale Securities [Line Items]
Prepayment rates	12.00%
Non-prime | Maximum
Schedule of Available-for-sale Securities [Line Items]
Prepayment rates	15.00%

Real Estate Securities - Activi

Real Estate Securities - Activity of Credit Component of Other-than-Temporary Impairments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Activity of the Credit Component of Other-than-Temporary Impairments
Balance at beginning of period	$ 28,277	$ 33,849
Securities sold, or expected to sell	(226)	(95)
Securities with no outstanding principal at period end	(109)	(805)
Balance at End of Period	$ 27,942	$ 32,949

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	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Gross realized gains	$ 11,419	$ 4,306
Gross realized losses	(2,173)	0
Total Realized Gains on Sales and Calls of AFS Securities, net	$ 9,246	$ 4,306

Mortgage Servicing Rights - Sch

Mortgage Servicing Rights - Schedule of Fair Value of MSRs and Aggregate Principal Amounts of Associated Loans (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015		Mar. 31, 2015	Dec. 31, 2014
Servicing Assets at Fair Value [Line Items]
MSR Fair Value	$ 126,620	$ 191,976	[1]
Associated Principal	14,824,005	18,266,472
Mortgage servicing rights
Servicing Assets at Fair Value [Line Items]
MSR Fair Value	126,620	191,976		$ 120,324	$ 139,293
Mortgage servicing rights | Conforming Loan
Servicing Assets at Fair Value [Line Items]
MSR Fair Value	86,591	133,838
Associated Principal	9,344,652	12,560,533
Mortgage servicing rights | Jumbo Loan
Servicing Assets at Fair Value [Line Items]
MSR Fair Value	40,029	58,138
Associated Principal	$ 5,479,353	$ 5,705,939
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, 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		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance at beginning of period	[1]	$ 191,976
Additions		3,463	$ 15,675
Changes in fair value due to:
Balance at End of Period		126,620
Mortgage servicing rights
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance at beginning of period		191,976	139,293
Additions		8,807	18,754
Sales		(29,559)	(18,206)
Changes in fair value due to:
Changes in assumptions		(38,328)	(14,036)
Other changes		(6,276)	(5,481)
Balance at End of Period		$ 126,620	$ 120,324
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Mortgage Servicing Rights - Det

Mortgage Servicing Rights - Details of Retention and Purchase of MSRs (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Mortgage Servicing Rights [Line Items]
MSRs recognized	$ 3,463	$ 15,675
Mortgage servicing rights
Mortgage Servicing Rights [Line Items]
MSRs recognized	8,807	$ 18,754
Associated Principal	870,071
Mortgage servicing rights | Jumbo Loan
Mortgage Servicing Rights [Line Items]
MSRs recognized	46
Associated Principal	6,519
Mortgage servicing rights | Jumbo Loan | Loan Sales
Mortgage Servicing Rights [Line Items]
MSRs recognized	46
Associated Principal	6,519
Mortgage servicing rights | Conforming Loan
Mortgage Servicing Rights [Line Items]
MSRs recognized	8,761
Associated Principal	863,552
Mortgage servicing rights | Conforming Loan | Loan Sales
Mortgage Servicing Rights [Line Items]
MSRs recognized	3,364
Associated Principal	314,518
Mortgage servicing rights | Conforming Loan | From purchases
Mortgage Servicing Rights [Line Items]
MSRs recognized	5,397
Associated Principal	$ 549,034

Mortgage Servicing Rights - Com

Mortgage Servicing Rights - Components of Mortgage Servicing Rights Income (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Servicing income:
Income	$ 11,684	$ 9,716
Cost of sub-servicer	(2,038)	(1,229)
Net servicing income	9,646	8,487
Market valuation adjustments	(44,604)	(19,517)
Market valuation changes in associated derivatives	41,057	0
MSR provision for repurchases	182	106
MSR income (loss)	$ 6,281	$ (10,924)

Derivative Financial Instrume92

Derivative Financial Instruments - Aggregate Fair Value and Notional Amount of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Derivative [Line Items]
Fair Value	$ (65,493)	$ (46,401)
Notional Amount	4,635,085	6,483,976
Derivative Liabilities
Derivative [Line Items]
Fair Value	(97,468)	(62,794)
Notional Amount	2,102,769	3,083,315
Derivative Assets
Derivative [Line Items]
Fair Value	31,975	16,393
Notional Amount	2,532,316	3,400,661
Interest rate swaps | Derivative Liabilities
Derivative [Line Items]
Fair Value	(29,693)	(10,134)
Notional Amount	968,500	1,039,500
Interest rate swaps | Cash Flow Hedging | Derivative Liabilities
Derivative [Line Items]
Fair Value	(62,407)	(48,232)
Notional Amount	139,500	139,500
Interest rate swaps | Derivative Assets
Derivative [Line Items]
Fair Value	8,647	2,590
Notional Amount	525,000	658,000
TBAs | Derivative Liabilities
Derivative [Line Items]
Fair Value	(3,739)	(2,519)
Notional Amount	581,000	1,450,500
TBAs | Derivative Assets
Derivative [Line Items]
Fair Value	2,843	2,734
Notional Amount	569,500	1,028,500
Futures | Derivative Liabilities
Derivative [Line Items]
Fair Value	(1,324)	(445)
Notional Amount	150,000	78,000
Swaptions | Derivative Assets
Derivative [Line Items]
Fair Value	15,541	5,191
Notional Amount	570,000	925,000
Credit Default Index Swaps | Derivative Assets
Derivative [Line Items]
Fair Value	0	1,207
Notional Amount	0	25,000
Loan Purchase Commitments | Derivative Liabilities
Derivative [Line Items]
Fair Value	(305)	(1,464)
Notional Amount	263,769	375,815
Loan Purchase Commitments | Derivative Assets
Derivative [Line Items]
Fair Value	4,944	4,671
Notional Amount	$ 867,816	$ 764,161

Derivative Financial Instrume93

Derivative Financial Instruments - Additional Information (Detail) $ in Thousands		3 Months Ended
		Mar. 31, 2016USD ($)counterparty	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Derivative [Line Items]
Notional amount		$ 4,635,085		$ 6,483,976
Accumulated other comprehensive income (loss)	[1]	$ 56,712		91,993
Number of counterparties | counterparty		4
Net unrealized losses on interest rate agreements accounted for as cash flow hedges
Derivative [Line Items]
Accumulated other comprehensive income (loss)		$ (61,588)	$ (54,460)	(47,363)	$ (46,049)
Loan Purchase and Forward Sales Commitments
Derivative [Line Items]
Market valuations gains and losses, net		13,000	18,000
Interest rate swaps | Cash Flow Hedging
Derivative [Line Items]
Notional amount		140,000
Valuation adjustments on derivatives		(14,000)	(8,000)
Unsecuritized Residential and Commercial Loans
Derivative [Line Items]
Valuation adjustments on derivatives		(8,000)	$ (12,000)
Unsecuritized Residential and Commercial Loans | Interest Rate Contract
Derivative [Line Items]
Notional amount		2,060,000		2,620,000
Unsecuritized Residential and Commercial Loans | Futures
Derivative [Line Items]
Notional amount		150,000		78,000
Unsecuritized Residential and Commercial Loans | TBAs
Derivative [Line Items]
Notional amount		$ 1,150,000		$ 2,480,000
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Derivative Financial Instrume94

Derivative Financial Instruments - Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Derivative [Line Items]
Total Interest Expense	$ (23,950)	$ (23,961)
Cash Flow Hedging | Interest Rate Contract
Derivative [Line Items]
Net interest expense on cash flows hedges	(1,387)	(1,484)
Realized net losses reclassified from other comprehensive income	(18)	(31)
Total Interest Expense	$ (1,405)	$ (1,515)

Other Assets and Liabilities -

Other Assets and Liabilities - Components of Other Assets (Detail) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Margin receivable		$ 107,941	$ 83,191
Pledged collateral		59,664	53,600
FHLBC stock		44,071	34,437
Investment receivable		7,772	3,870
Guarantee asset		4,272	5,697
REO		4,884	4,896
Fixed assets and leasehold improvements		3,608	4,117
Prepaid expenses		2,183	3,640
Other		7,996	4,438
Total Other Assets	[1]	242,391	$ 197,886
Fixed assets		6,000
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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Other Assets and Liabilities 96

Other Assets and Liabilities - Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Guarantee obligations	$ 24,896	$ 22,704
Unsettled trades	15,014	29
Margin payable	14,247	6,415
Residential loan and MSR repurchase reserve	6,693	6,403
Accrued compensation	6,476	17,527
Restructuring liabilities	5,245	0
Legal reserve	2,000	2,000
Accrued operating expenses	1,621	1,845
Current accounts payable	1,038	4,764
Other	4,939	8,210
Total Other Liabilities	$ 82,169	$ 69,897

Other Assets and Liabilities 97

Other Assets and Liabilities - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)Location	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)Location
Other Assets and Other Liabilities [Line Items]
Guarantee obligations, over-collateralized amount	$ 16,000
Real estate owned (REO)	4,884		$ 4,896
Amount related to transfers into REO	2,000
REO liquidations	3,000
Unrealized loss resulting from market valuation adjustments on REO	1,000
Costs incurred and expensed	10,659	$ 0
Adjustments in restructuring	$ (3,486)
Sequoia
Other Assets and Other Liabilities [Line Items]
Number of REO properties recorded on balance sheet | Location	20		23
Termination Benefits
Other Assets and Other Liabilities [Line Items]
Costs incurred and expensed	$ 8,738
Adjustments in restructuring	(3,486)
Contract Termination Costs
Other Assets and Other Liabilities [Line Items]
Costs incurred and expensed	1,921
Adjustments in restructuring	$ 0

Other Assets and Liabilities 98

Other Assets and Liabilities - Restructuring Accruals (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Restructuring Reserve [Roll Forward]
Restructuring Reserve	$ 0
Costs incurred and expensed	10,659	$ 0
Costs paid/settled	(1,928)
Adjustments	(3,486)
Restructuring Reserve	5,245
Termination Benefits
Restructuring Reserve [Roll Forward]
Restructuring Reserve	0
Costs incurred and expensed	8,738
Costs paid/settled	(1,326)
Adjustments	(3,486)
Restructuring Reserve	3,926
Contract Termination Costs
Restructuring Reserve [Roll Forward]
Restructuring Reserve	0
Costs incurred and expensed	1,921
Costs paid/settled	(602)
Adjustments	0
Restructuring Reserve	$ 1,319

Short-Term Debt - Outstanding B

Short-Term Debt - Outstanding Balances of Short-Term Debt by Type of Collateral Securing Debt (Detail) $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2016USD ($)Contract	Dec. 31, 2015USD ($)Contract
Short-term Debt [Line Items]
Number of Facilities | Contract		15	16
Outstanding	[1]	$ 804,175	$ 1,855,003
Residential loan warehouse
Short-term Debt [Line Items]
Number of Facilities | Contract		4
Outstanding		$ 368,679
Limit		$ 1,400,000
Weighted Average Interest Rate		1.97%
Weighted Average Days Until Maturity		240 days
Commercial loan warehouse
Short-term Debt [Line Items]
Number of Facilities | Contract		2	2
Outstanding		$ 0	$ 73,718
Limit		$ 300,000	$ 300,000
Weighted Average Interest Rate			4.13%
Weighted Average Days Until Maturity			265 days
Real estate securities repo
Short-term Debt [Line Items]
Number of Facilities | Contract		9	9
Outstanding		$ 435,496	$ 693,641
Weighted Average Interest Rate		1.77%	1.47%
Weighted Average Days Until Maturity		29 days	24 days
Held-for-sale residential loan warehouse
Short-term Debt [Line Items]
Number of Facilities | Contract			4
Outstanding			$ 950,022
Limit			$ 1,400,000
Weighted Average Interest Rate			1.90%
Weighted Average Days Until Maturity			182 days
FHLBC
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
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Short-Term Debt - Additional In

Short-Term Debt - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Short-term Debt [Line Items]
Average balance of short-term debt	$ 1,280,000,000	$ 1,590,000,000
Accrued interest payable on short-term debt	3,000,000		$ 2,000,000
Committed line of credit	10,000,000
Fair value of mortgage backed securities securing loan (in excess)	10,000,000
Committed line of credit with financial institutions, outstanding	0		0
Residential Loans
Short-term Debt [Line Items]
Loan pledged as collateral	414,000,000		1,070,000,000
Commercial Loans
Short-term Debt [Line Items]
Loan pledged as collateral	7,000,000		152,000,000
Residential
Short-term Debt [Line Items]
Securities pledged as collateral	$ 531,000,000		$ 827,000,000

Short-Term Debt - Remaining Mat

Short-Term Debt - Remaining Maturities of Short Term Debt (Detail) $ in Thousands		3 Months Ended
		Mar. 31, 2016USD ($)loan	Dec. 31, 2015USD ($)
Short-term Debt [Line Items]
Short-term debt	[1]	$ 804,175	$ 1,855,003
Number of loans serving as collateral under securities repo facility | loan		1
Within 30 Days
Short-term Debt [Line Items]
Short-term debt		$ 313,449
31 to 90 days
Short-term Debt [Line Items]
Short-term debt		186,618
Over 90 days
Short-term Debt [Line Items]
Short-term debt		304,108
Residential Loans
Short-term Debt [Line Items]
Short-term debt		368,679
Residential Loans | Within 30 Days
Short-term Debt [Line Items]
Short-term debt		0
Residential Loans | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		64,571
Residential Loans | Over 90 days
Short-term Debt [Line Items]
Short-term debt		304,108
Commercial Loans
Short-term Debt [Line Items]
Short-term debt		4,337
Commercial Loans | Within 30 Days
Short-term Debt [Line Items]
Short-term debt		4,337
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		0
Real Estate Securities
Short-term Debt [Line Items]
Short-term debt		431,159
Real Estate Securities | Within 30 Days
Short-term Debt [Line Items]
Short-term debt		309,112
Real Estate Securities | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		122,047
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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Asset-Backed Securities Issu102

Asset-Backed Securities Issued - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
ABS issued principal	[1],[2]	$ 958,364	$ 1,049,415
Asset-backed Securities | Contractual maturities of over five years
Debt Instrument [Line Items]
ABS issued principal		$ 907,000
Contractual maturities of ABS (in years)		5 years
Asset-backed Securities | Certificates With Principal Value | Contractual maturities of over five years
Debt Instrument [Line Items]
Principal value		$ 1,040,000
[1]	At March 31, 2016 and December 31, 2015, Asset-backed securities issued, net included $339 and $542, respectively, of deferred debt issuance costs, and long-term debt, net included $9,513 and $10,438, respectively, of deferred debt issuance costs.
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Asset-Backed Securities Issu103

Asset-Backed Securities Issued - Components of Asset-Backed Securities Issued by Consolidated Securitization Entities Sponsored, Along With Other Selected Information (Detail) $ in Thousands		Mar. 31, 2016USD ($)series	Dec. 31, 2015USD ($)series
Debt Instrument [Line Items]
Secured Debt, Net Of Debt Issuance Costs	[1],[2]	$ 2,683,432	$ 2,027,737
Asset-backed Securities
Debt Instrument [Line Items]
Principal value		958,703	1,049,957
Market valuation adjustments		(141,939)	(116,637)
Deferred debt issuance costs		(339)	(542)
Secured Debt, Net Of Debt Issuance Costs		958,364	1,049,415
Asset-backed Securities | Certificates With Principal Value
Debt Instrument [Line Items]
Principal value		1,096,044	1,161,922
Asset-backed Securities | Interest Only Certificates
Debt Instrument [Line Items]
Principal value		4,598	4,672
Asset-backed Securities | Sequoia
Debt Instrument [Line Items]
Principal value		907,023	996,820
Market valuation adjustments		(141,939)	(116,637)
Deferred debt issuance costs		0	0
Secured Debt, Net Of Debt Issuance Costs		$ 907,023	$ 996,820
Number of series | series		20	21
Asset-backed Securities | Sequoia | Minimum
Debt Instrument [Line Items]
Weighted average interest rates, by series		0.64%	0.41%
Asset-backed Securities | Sequoia | Maximum
Debt Instrument [Line Items]
Weighted average interest rates, by series		1.87%	2.21%
Asset-backed Securities | Sequoia | Certificates With Principal Value
Debt Instrument [Line Items]
Principal value		$ 1,044,364	$ 1,108,785
Asset-backed Securities | Sequoia | Interest Only Certificates
Debt Instrument [Line Items]
Principal value		4,598	4,672
Asset-backed Securities | Commercial Securitization
Debt Instrument [Line Items]
Principal value		51,680	53,137
Deferred debt issuance costs		(339)	(542)
Secured Debt, Net Of Debt Issuance Costs		$ 51,341	$ 52,595
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		$ 51,680	$ 53,137
[1]	At March 31, 2016 and December 31, 2015, Asset-backed securities issued, net included $339 and $542, respectively, of deferred debt issuance costs, and long-term debt, net included $9,513 and $10,438, respectively, of deferred debt issuance costs.
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Asset-Backed Securities Issu104

Asset-Backed Securities Issued - Summary of Accrued Interest Payable on Asset-Backed Securities Issued (Detail) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Accrued interest payable	[1]	$ 15,522	$ 8,936
Asset-backed Securities | Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
Accrued interest payable		761	804
Asset-backed Securities | Variable Interest Entity, Primary Beneficiary | Sequoia
Debt Instrument [Line Items]
Accrued interest payable		519	555
Asset-backed Securities | Variable Interest Entity, Primary Beneficiary | Commercial Securitization
Debt Instrument [Line Items]
Accrued interest payable		$ 242	$ 249
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Asset-Backed Securities Issu105

Asset-Backed Securities Issued - Summary of Carrying Value Components of Collateral for Asset-Backed Securities Issued and Outstanding (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	$ 1,102,195	$ 1,195,574
Residential Loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	930,027	1,021,870
Commercial Loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	164,626	166,016
Restricted Cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	283	365
Accrued Interest Receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	2,328	2,428
REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	4,931	4,895
Sequoia
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	936,096	1,028,124
Sequoia | Residential Loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	930,027	1,021,870
Sequoia | Commercial Loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	0
Sequoia | Restricted Cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	147	228
Sequoia | Accrued Interest Receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	1,038	1,131
Sequoia | REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	4,884	4,895
Commercial Securitization
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	166,099	167,450
Commercial Securitization | Residential Loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	0
Commercial Securitization | Commercial Loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	164,626	166,016
Commercial Securitization | Restricted Cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	136	137
Commercial Securitization | Accrued Interest Receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	1,290	1,297
Commercial Securitization | REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	$ 47	$ 0

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Detail) - USD ($)		1 Months Ended		3 Months Ended		12 Months Ended
		Nov. 30, 2014	Mar. 31, 2013	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Debt Instrument [Line Items]
Transition period for subsidiary to be a FHLB-member				5 years
Existing debt				$ 0		$ 0
Federal home loan bank stock				44,071,000		34,437,000
Accrued interest payable				3,000,000		2,000,000
Accrued interest payable balance on long-term debt (less than)	[1]			$ 15,522,000		8,936,000
Exchangeable Senior Notes
Debt Instrument [Line Items]
Interest expense yield				6.54%	6.52%
Senior Notes due 2018
Debt Instrument [Line Items]
Interest expense yield				5.41%	5.36%
FHLB Chicago
Debt Instrument [Line Items]
Federal home loan bank advances, reset period of basis margin				91 days
FHLB Member Subsidiary | FHLB Chicago
Debt Instrument [Line Items]
Maximum borrowing limit				$ 2,000,000,000
Additional borrowings from FHLBC				519,000,000
Existing debt				2,000,000,000
Federal home loan bank advances outstanding				$ 2,000,000,000		1,480,000,000
Outstanding advances classified as long-term debt						$ 1,340,000,000
Weighted average interest rate				0.58%		0.46%
Weighted average maturity				9 years		9 years
Secured Debt
Debt Instrument [Line Items]
Commercial mortgage loans				$ 65,000,000
Convertible Debt | Exchangeable Senior Notes
Debt Instrument [Line Items]
Convertible notes		$ 205,000,000		201,000,000
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
Accrued interest payable				4,000,000
Unamortized Debt Issuance Expense				$ 5,000,000
Convertible senior notes conversion rate				0.0461798
Convertible senior notes conversion per share				$ 21.65
Amount of debt repurchased				$ 4,000,000
Convertible Debt | 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
Accrued interest payable				7,000,000
Unamortized Debt Issuance Expense				$ 4,000,000
Convertible senior notes conversion rate				0.041132
Convertible senior notes conversion per share				$ 24.31
Trust Preferred Securities
Debt Instrument [Line Items]
Interest expense yield				2.85%	2.52%
Debt instrument face amount				$ 100,000,000
Percentage of yield of debt securities				6.86%	6.81%
Accrued interest payable balance on long-term debt (less than)				$ 1,000,000		$ 1,000,000
Subordinated Notes
Debt Instrument [Line Items]
Interest expense yield				2.85%	2.52%
Debt instrument face amount				$ 40,000,000
Percentage of yield of debt securities				6.86%	6.81%
Accrued interest payable balance on long-term debt (less than)				$ 1,000,000
Gain (Loss) on Investments [Member] | Convertible Debt | Exchangeable Senior Notes
Debt Instrument [Line Items]
Gains on extinguishment of debt				$ 300,000
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Long-Term Debt - FHLBC Borrowin

Long-Term Debt - FHLBC Borrowings (Details) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total FHLBC Borrowings	[1],[2]	$ 2,683,432	$ 2,027,737
FHLB Chicago | FHLB Member Subsidiary
Debt Instrument [Line Items]
2,024		470,171
2,025		887,639
2,026		642,189
Total FHLBC Borrowings		$ 1,999,999
[1]	At March 31, 2016 and December 31, 2015, Asset-backed securities issued, net included $339 and $542, respectively, of deferred debt issuance costs, and long-term debt, net included $9,513 and $10,438, respectively, of deferred debt issuance costs.
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in Thousands	Jul. 15, 2010Plaintiff	Mar. 31, 2016USD ($)leaserepurchase_request	Mar. 31, 2015USD ($)repurchase_request	Dec. 31, 2015USD ($)
Loss Contingencies [Line Items]
Number of noncancelable leases | lease		7
Operating lease expiration dates		2,021
Future lease commitments with expiration date		$ 9,539
Operating lease expense		1,000	$ 1,000
Special Purpose Entities (SPEs) assets		66,000		$ 63,000
Special Purpose Entities (SPEs) liabilities		25,000		25,000
Residential repurchase reserve		$ 6,693		6,403
Residential repurchase requests | repurchase_request		27	25
Residential repurchase provisions recorded		$ 300	$ 1,000
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
Guarantee Obligations
Loss Contingencies [Line Items]
Principal Amount Outstanding on Loans Securitized or Asset-backed Financing Arrangement, Original Principal Balance		3,190,000
Loan Principal		$ 2,930,000
Weighted average original Fair Isaac Corporation (FICO) score		758
Weighted average original loan-to-value (LTV)		76.00%
Potential future payments on loans		$ 44,000
Guarantee Obligations | Financing Receivables, Equal To Greater Than 30 Days Past Due
Loss Contingencies [Line Items]
Financing Receivable, Recorded Investment, Past Due		11,000
Guarantee Obligations | Financing Receivables, Equal to Greater than 90 Days Past Due
Loss Contingencies [Line Items]
Financing Receivable, Recorded Investment, Past Due		$ 1,000
Residential | Sequoia | FHLB Seattle
Loss Contingencies [Line Items]
Statutory interest rate per annum		8.00%
Principal value		$ 133,000
Debt instrument principal payment amount		121,000
Debt instrument interest payment amount		11,000
Residential | Sequoia | Schwab
Loss Contingencies [Line Items]
Principal value		15,000
Principal balance of securities		13,000
Debt instrument interest amount		1,000
Other income
Loss Contingencies [Line Items]
Other income related to risk sharing agreement		1,000	1,000
Mortgage banking and investment activities
Loss Contingencies [Line Items]
Market valuation changes in fair value of guarantee asset (less than for three months ending June 30, 2015)		$ 0	$ (1,000)

Commitments and Contingencie109

Commitments and Contingencies - Future Lease Commitments (Detail) $ in Thousands	Mar. 31, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
2016 (9 months)	$ 2,149
2,017	2,880
2,018	1,827
2,019	1,189
2,020	1,127
2021 and thereafter	367
Total	$ 9,539

Equity - Changes to Accumulated

Equity - Changes to Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	[1]	$ 91,993
Total other comprehensive income (loss)		(35,281)	$ (5,048)
Balance at End of Period	[1]	56,712
Net unrealized gains on available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period		139,356	186,737
Other comprehensive income (loss) before reclassifications		(10,103)	5,053
Amounts reclassified from other accumulated comprehensive income		(10,953)	(1,690)
Total other comprehensive income (loss)		(21,056)	3,363
Balance at End of Period		118,300	190,100
Net unrealized losses on interest rate agreements accounted for as cash flow hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period		(47,363)	(46,049)
Other comprehensive income (loss) before reclassifications		(14,243)	(8,442)
Amounts reclassified from other accumulated comprehensive income		18	31
Total other comprehensive income (loss)		(14,225)	(8,411)
Balance at End of Period		$ (61,588)	$ (54,460)
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, 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
	Mar. 31, 2016	Mar. 31, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized gains (losses), net	$ 9,538	$ 4,306
Total interest expense	23,950	23,961
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains on available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized gains (losses), net	(10,953)	(1,690)
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized losses on interest rate agreements accounted for as cash flow hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total interest expense	$ 18	$ 31

Equity - Basic and Diluted Earn

Equity - Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Equity [Abstract]
Net income attributable to Redwood	$ 12,063	$ 14,801
Less: Dividends and undistributed earnings allocated to participating securities	(701)	(822)
Net income allocated to common shareholders	$ 11,362	$ 13,979
Basic weighted average common shares outstanding (shares)	77,137,682	83,360,312
Basic earnings per common share (usd per share)	$ 0.15	$ 0.17
Less: Dividends and undistributed earnings allocated to participating securities	$ (701)	$ (822)
Net income allocated to common shareholders	$ 11,362	$ 13,979
Net effect of dilutive equity awards (in shares)	0	2,261,904
Diluted weighted average common shares outstanding (shares)	77,137,682	85,622,216
Diluted earnings per common share (usd per share)	$ 0.15	$ 0.16

Equity - Additional Information

Equity - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Feb. 28, 2016	Aug. 31, 2015
Stockholders Equity Note [Line Items]
Shares repurchased, value	$ 20,621,000
Convertible notes
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share	21,245,028	21,292,309
Equity awards
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share	6,950	79,535
Share Repurchase Plan, August 2015 [Member]
Stockholders Equity Note [Line Items]
Common stock authorized to repurchase by Board				$ 100,000,000
Shares repurchased pursuant to authorization	839,130
Shares repurchased, value	$ 11,000,000
Share Repurchase Plan, February 2016 [Member]
Stockholders Equity Note [Line Items]
Common stock authorized to repurchase by Board			$ 100,000,000
Shares repurchased pursuant to authorization	770,055	0
Shares repurchased, value	$ 9,000,000
Available authorization remaining for repurchase	$ 91,000,000

Equity Compensation Plans - Unr

Equity Compensation Plans - Unrecognized Compensation Cost (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	$ 23,608
Equity grants	5,220
Equity grant forfeitures	(3,478)
Equity compensation (expense) income	5,818
Equity compensation expense	(2,332)	$ (2,738)
Unrecognized Compensation Cost at End of Period	19,532
Deferred Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Equity compensation (expense) income	3,000
Performance Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Equity compensation (expense) income	600
Incentive Plans | Restricted Stock
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	2,393
Equity grants	1,741
Equity grant forfeitures	(1,119)
Equity compensation (expense) income	(17)
Unrecognized Compensation Cost at End of Period	3,032
Incentive Plans | Deferred Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	14,392
Equity grants	3,355
Equity grant forfeitures	(150)
Equity compensation (expense) income	4,712
Unrecognized Compensation Cost at End of Period	12,885
Incentive Plans | Performance Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	6,823
Equity grants	0
Equity grant forfeitures	(2,209)
Equity compensation (expense) income	1,092
Unrecognized Compensation Cost at End of Period	3,522
Employee Stock Purchase Plan
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Equity grants	124
Equity compensation (expense) income	31
Unrecognized Compensation Cost at End of Period	$ 93

Equity Compensation Plans - Add

Equity Compensation Plans - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)executiveshares	Mar. 31, 2015shares	Dec. 31, 2015USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for grant under Redwood's Incentive Plan	1,391,379		1,665,032
Unrecognized compensation cost | $	$ 19,532		$ 23,608
Share-based compensation, vesting period	3 years
Equity compensation expense | $	$ 5,818
Number of shares purchased by employees	316,990	310,040
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards	223,914		187,180
Number of stock awards granted	144,056
Number of stock awards vested	48,061
Number of stock awards forfeited	59,261
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards	2,680,320		2,407,154
Number of stock awards granted	281,014
Number of stock awards vested	1,707,272	1,363,548
Number of stock awards forfeited	7,849
Number of stock awards distributed	0
Equity compensation expense | $	$ 3,000
Number of executives departed | executive	2
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards	656,549		849,021
Share-based compensation, vesting period	3 years
Equity compensation expense | $	$ 600
Number of executives departed | executive	2
Share-based compensation, vesting year	2016 and in future years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average amortization period remaining for equity awards (less than)	2 years
Shares of common stock to be purchased in aggregate for all employees	450,000
Maximum | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards, vesting percentage	200.00%
Total Shareholder Return (TSR) percentage to determine vested shares (greater than)	125.00%
Minimum | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards, vesting percentage	0.00%

Mortgage Banking Activities,116

Mortgage Banking Activities, Net - Components of Mortgage Banking Activities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Mortgage Loans on Real Estate [Line Items]
Mortgage Banking Activities, Net	$ 7,218	$ 1,923
Residential Mortgage Banking Activities
Mortgage Loans on Real Estate [Line Items]
Other income (expense), net / other fee income	(62)	633
Mortgage Banking Activities, Net	9,280	2,215
Residential Mortgage Banking Activities | Residential loans, at fair value
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	18,074	20,312
Residential Mortgage Banking Activities | Sequoia securities
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	1,484	(14,359)
Residential Mortgage Banking Activities | Risk managment derivatives
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of risk management derivatives	(10,216)	(4,371)
Commercial Mortgage Banking Activities
Mortgage Loans on Real Estate [Line Items]
Other income (expense), net / other fee income	43	63
Mortgage Banking Activities, Net	(2,062)	(292)
Commercial Mortgage Banking Activities | Risk managment derivatives
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of risk management derivatives	(2,538)	(6,212)
Commercial Mortgage Banking Activities | Commercial loans, at fair value
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	$ 433	$ 5,857

Investments Fair Value Chang117

Investments Fair Value Changes, Net - Components of Investment Activities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	$ (19,538)	$ (1,145)
Investment activities
Investment Holdings [Line Items]
Changes in fair value of assets	(19,538)	(1,145)
Changes in fair value of risk management derivatives	(35,810)	(1,374)
Investment Fair Value Changes, Net	(19,538)	(1,145)
Investment activities | Residential loans held-for-investment, at Redwood
Investment Holdings [Line Items]
Changes in fair value of assets	23,463	1,980
Investment activities | Trading Securities
Investment Holdings [Line Items]
Changes in fair value of assets	(5,601)	270
Investment activities | Net investments in consolidated Sequoia entities
Investment Holdings [Line Items]
Changes in fair value of assets	(1,580)	(1,093)
Investment activities | Risk sharing investments
Investment Holdings [Line Items]
Changes in fair value of assets	$ (10)	$ (928)

Operating Expenses - Components

Operating Expenses - Components of Operating Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Other Income and Expenses [Abstract]
Fixed compensation expense	$ 7,894	$ 9,155
Variable compensation expense	1,760	3,991
Equity compensation expense	2,332	2,738
Total compensation expense	11,986	15,884
Systems and consulting	2,622	2,122
Loan acquisition costs	1,601	2,324
Accounting and legal	985	1,577
Office costs	1,380	1,232
Corporate costs	466	526
Other operating expenses	753	1,398
Operating expenses before restructuring charges	19,793	25,063
Restructuring charges	10,659	0
Total Operating Expenses	$ 30,452	$ 25,063

Operating Expenses - Additional

Operating Expenses - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 10,659	$ 0
Termination Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring charges	8,738
Equity compensation
Restructuring Cost and Reserve [Line Items]
Restructuring charges	4,000
Fixed compensation
Restructuring Cost and Reserve [Line Items]
Restructuring charges	5,000
Contract Termination Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 1,921

Taxes - Additional Information

Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
(Provision for) benefit from income taxes	$ (28)	$ 5,316

Taxes - Reconciliation of Statu

Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Detail)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Federal statutory rate	34.00%	34.00%
State statutory rate, net of Federal tax effect	7.20%	7.20%
Differences in taxable (loss) income from GAAP income	(74.00%)	(44.70%)
Change in valuation allowance	92.00%	11.90%
Dividends paid deduction	(59.00%)	(64.40%)
Effective Tax Rate	0.20%	(56.00%)

Segment Information - Additiona

Segment Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016Segment
Segment Reporting [Abstract]
Number of operating segments	3

Segment Information - Financial

Segment Information - Financial Information by Segment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Interest income	$ 62,328	$ 63,746
Interest expense	(23,950)	(23,961)
Net Interest Income	38,378	39,785
Provision for loan losses	(289)	(206)
Mortgage banking activities, net	7,218	1,923
MSR income (loss), net	6,281	(10,924)
Investment fair value changes, net	(19,538)	(1,145)
Other income	955	809
Realized gains, net	9,538	4,306
Total non-interest income (loss), net	4,454	(5,031)
Direct operating expenses	(30,452)	(25,063)
Provision for income taxes	(28)	5,316
Net Income	12,063	14,801
Non-cash amortization income (expense)	7,019	8,762
Operating Segments | Residential Mortgage Banking
Segment Reporting Information [Line Items]
Interest income	7,869	15,795
Interest expense	(3,289)	(3,778)
Net Interest Income	4,580	12,017
Provision for loan losses	0	0
Mortgage banking activities, net	9,280	2,215
MSR income (loss), net	0	0
Investment fair value changes, net	0	2
Other income	0	0
Realized gains, net	0	0
Total non-interest income (loss), net	9,280	2,217
Direct operating expenses	(5,321)	(10,903)
Provision for income taxes	0	8
Net Income	8,539	3,339
Non-cash amortization income (expense)	(43)	(46)
Operating Segments | Residential Investments
Segment Reporting Information [Line Items]
Interest income	39,936	30,012
Interest expense	(4,953)	(2,810)
Net Interest Income	34,983	27,202
Provision for loan losses	0	0
Mortgage banking activities, net	0	0
MSR income (loss), net	6,281	(10,924)
Investment fair value changes, net	(17,765)	(19)
Other income	955	809
Realized gains, net	9,246	4,306
Total non-interest income (loss), net	(1,283)	(5,828)
Direct operating expenses	(1,861)	(1,118)
Provision for income taxes	(28)	3,510
Net Income	31,811	23,766
Non-cash amortization income (expense)	8,068	9,838
Operating Segments | Commercial Mortgage Banking and Investments
Segment Reporting Information [Line Items]
Interest income	9,581	10,914
Interest expense	(2,952)	(3,489)
Net Interest Income	6,629	7,425
Provision for loan losses	(289)	(206)
Mortgage banking activities, net	(2,062)	(292)
MSR income (loss), net	0	0
Investment fair value changes, net	(137)	0
Other income	0	0
Realized gains, net	0	0
Total non-interest income (loss), net	(2,199)	(292)
Direct operating expenses	(1,602)	(3,482)
Provision for income taxes	0	853
Net Income	2,539	4,298
Non-cash amortization income (expense)	(16)	(49)
Corporate/Other
Segment Reporting Information [Line Items]
Interest income	4,942	7,025
Interest expense	(12,756)	(13,884)
Net Interest Income	(7,814)	(6,859)
Provision for loan losses	0	0
Mortgage banking activities, net	0	0
MSR income (loss), net	0	0
Investment fair value changes, net	(1,636)	(1,128)
Other income	0	0
Realized gains, net	292	0
Total non-interest income (loss), net	(1,344)	(1,128)
Direct operating expenses	(21,668)	(9,560)
Provision for income taxes	0	945
Net Income	(30,826)	(16,602)
Non-cash amortization income (expense)	$ (990)	$ (981)

Segment Information - Component

Segment Information - Components of Corporate/Other (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Interest income	$ 62,328	$ 63,746
Interest expense	(23,950)	(23,961)
Net Interest Income	38,378	39,785
Provision for loan losses	(289)	(206)
Mortgage banking activities, net	7,218	1,923
MSR income (loss), net	6,281	(10,924)
Investment fair value changes, net	(19,538)	(1,145)
Realized gains, net	9,538	4,306
Total non-interest income (loss), net	4,454	(5,031)
Direct operating expenses	(30,452)	(25,063)
Provision for income taxes	(28)	5,316
Net Income	12,063	14,801
Legacy Consolidated VIEs
Segment Reporting Information [Line Items]
Interest income	4,777	7,018
Interest expense	(3,297)	(4,482)
Net Interest Income	1,480	2,536
Provision for loan losses	0	0
Mortgage banking activities, net	0	0
MSR income (loss), net	0	0
Investment fair value changes, net	(1,580)	(1,093)
Other income	0	0
Realized gains, net	0	0
Total non-interest income (loss), net	(1,580)	(1,093)
Direct operating expenses	0	0
Provision for income taxes	0	0
Net Income	(100)	1,443
Other
Segment Reporting Information [Line Items]
Interest income	165	7
Interest expense	(9,459)	(9,402)
Net Interest Income	(9,294)	(9,395)
Provision for loan losses	0	0
Mortgage banking activities, net	0	0
MSR income (loss), net	0	0
Investment fair value changes, net	(56)	(35)
Other income	0	0
Realized gains, net	292	0
Total non-interest income (loss), net	236	(35)
Direct operating expenses	(21,668)	(9,560)
Provision for income taxes	0	945
Net Income	(30,726)	(18,045)
Corporate/Other
Segment Reporting Information [Line Items]
Interest income	4,942	7,025
Interest expense	(12,756)	(13,884)
Net Interest Income	(7,814)	(6,859)
Provision for loan losses	0	0
Mortgage banking activities, net	0	0
MSR income (loss), net	0	0
Investment fair value changes, net	(1,636)	(1,128)
Other income	0	0
Realized gains, net	292	0
Total non-interest income (loss), net	(1,344)	(1,128)
Direct operating expenses	(21,668)	(9,560)
Provision for income taxes	0	945
Net Income	$ (30,826)	$ (16,602)

Segment Information - Supplemen

Segment Information - Supplemental Information by Segment (Detail) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Residential loans		$ 3,715,056	$ 3,928,803
Commercial loans		363,893	402,647
Real estate securities	[1]	919,927	1,233,256
Mortgage servicing rights		126,620	191,976	[1]
Total assets	[1]	5,726,880	6,220,047
Operating Segments | Residential Mortgage Banking
Segment Reporting Information [Line Items]
Residential loans		441,076	1,115,738
Commercial loans		0	0
Real estate securities		0	197,007
Mortgage servicing rights		0	0
Total assets		472,213	1,347,492
Operating Segments | Residential Investments
Segment Reporting Information [Line Items]
Residential loans		2,343,953	1,791,195
Commercial loans		0	0
Real estate securities		909,569	1,028,171
Mortgage servicing rights		126,620	191,976
Total assets		3,552,629	3,140,604
Operating Segments | Commercial Mortgage Banking and Investments
Segment Reporting Information [Line Items]
Residential loans		0	0
Commercial loans		363,893	402,647
Real estate securities		10,358	8,078
Mortgage servicing rights		0	0
Total assets		377,452	415,716
Corporate/Other
Segment Reporting Information [Line Items]
Residential loans		930,027	1,021,870
Commercial loans		0	0
Real estate securities		0	0
Mortgage servicing rights		0	0
Total assets		$ 1,324,586	$ 1,316,235
[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 March 31, 2016 and December 31, 2015, assets of consolidated VIEs totaled $1,102,195 and $1,195,574, respectively. At March 31, 2016 and December 31, 2015, liabilities of consolidated VIEs totaled $959,464 and $1,050,861, respectively. See Note 4 for further discussion.