Redwood Trust (RWT) 10-K 28 Feb 18 2017 Q4 Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Feb. 26, 2018	Jun. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q4
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		75,557,381
Entity Public Float			$ 1,292,062,376
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands		Dec. 31, 2017	Dec. 31, 2016
ASSETS
Real estate securities, at fair value	[1]	$ 1,476,510	$ 1,018,439
Mortgage servicing rights, at fair value	[1]	63,598	118,526
Cash and cash equivalents	[1]	144,663	212,844
Total earning assets	[1]	6,799,981	5,237,860
Restricted cash	[1]	2,144	8,623
Accrued interest receivable	[1]	27,013	18,454
Derivative assets	[1]	15,718	36,595
Other assets	[1]	194,966	181,945
Total Assets	[1]	7,039,822	5,483,477
Liabilities
Short-term debt	[1],[2]	1,938,682	791,539
Accrued interest payable	[1]	18,435	9,608
Derivative liabilities	[1]	63,081	66,329
Accrued expenses and other liabilities	[1]	67,729	72,428
Asset-backed securities issued, at fair value	[1]	1,164,585	773,462
Long-term debt, net	[1]	2,575,023	2,620,683
Total liabilities	[1]	5,827,535	4,334,049
Equity
Common stock, par value $0.01 per share, 180,000,000 shares authorized; 76,599,972 and 76,834,663 issued and outstanding	[1]	766	768
Additional paid-in capital	[1]	1,673,845	1,676,486
Accumulated other comprehensive income	[1]	85,248	71,853
Cumulative earnings	[1]	1,290,341	1,149,935
Cumulative distributions to stockholders	[1]	(1,837,913)	(1,749,614)
Total equity	[1]	1,212,287	1,149,428
Total Liabilities and Equity	[1]	7,039,822	5,483,477
Residential Loans Held For Sale
ASSETS
Loan market valuation adjustment	[1]	1,427,945	835,399
Residential Loans Held For Investment
ASSETS
Loan market valuation adjustment	[1]	$ 3,687,265	$ 3,052,652
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016, assets of consolidated VIEs totaled $1,259,774 and $798,317, respectively. At December 31, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $1,167,157 and $773,980, respectively. See Note 4 for further discussion.
[2]	Includes $250 million of convertible notes, which were reclassified from Long-term debt, net to Short-term debt as the maturity of the notes was less than one year as of December 31, 2017. See Note 11 for further discussion.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	180,000,000	180,000,000
Common stock, issued (in shares)	76,599,972	76,834,663
Common stock, outstanding (in shares)	76,599,972	76,834,663
Variable interest held by entity, assets	$ 1,259,774	$ 798,317
Variable interest held by entity, liabilities	1,167,157	$ 773,980
Convertible notes	$ 250,000

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Interest Income
Residential loans	$ 154,362	$ 137,804	$ 114,715
Commercial loans	345	30,496	46,933
Real estate securities	90,803	76,873	97,448
Other interest income	2,547	1,182	336
Total interest income	248,057	246,355	259,432
Interest Expense
Short-term debt	(36,851)	(22,287)	(30,572)
Asset-backed securities issued	(19,108)	(14,735)	(21,469)
Long-term debt	(52,857)	(51,506)	(43,842)
Total interest expense	(108,816)	(88,528)	(95,883)
Net Interest Income	139,241	157,827	163,549
Reversal of provision for loan losses	0	7,102	355
Net Interest Income after Provision	139,241	164,929	163,904
Non-interest Income
Mortgage banking activities, net	53,908	38,691	10,972
Mortgage servicing rights income (loss), net	7,860	14,353	(3,922)
Investment fair value changes, net	10,374	(28,574)	(21,357)
Other income	4,576	6,338	3,192
Realized gains, net	13,355	28,009	36,369
Total non-interest income, net	90,073	58,817	25,254
Operating expenses	(77,156)	(88,786)	(97,416)
Net Income before Provision for Income Taxes	152,158	134,960	91,742
(Provision for) benefit from income taxes	(11,752)	(3,708)	10,346
Net Income	$ 140,406	$ 131,252	$ 102,088
Basic earnings per common share (in dollars per share)	$ 1.78	$ 1.66	$ 1.20
Diluted earnings per common share (in dollars per share)	1.60	1.54	1.18
Regular dividends declared per common share (in dollars per share)	$ 1.12	$ 1.12	$ 1.12
Basic weighted average shares outstanding (in shares)	76,792,957	76,747,047	82,945,103
Diluted weighted average shares outstanding (in shares)	101,975,008	97,909,090	84,518,395

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($)		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income		$ 140,406,000	$ 131,252,000	$ 102,088,000
Other comprehensive income (loss):
Net unrealized gain (loss) on available-for-sale securities	[1]	22,864,000	(2,316,000)	(17,955,000)
Reclassification of unrealized gain on available-for-sale securities to net income		(10,536,000)	(21,167,000)	(29,426,000)
Net unrealized gain (loss) on interest rate agreements		1,022,000	3,271,000	(1,409,000)
Reclassification of unrealized loss on interest rate agreements to net income		45,000	72,000	95,000
Total other comprehensive income (loss)		13,395,000	(20,140,000)	(48,695,000)
Total Comprehensive Income		153,801,000	111,112,000	53,393,000
Other comprehensive income (loss). before reclassification adjustments, tax benefit (provision)		$ 0	$ 1,000,000	$ (400,000)
[1]	Amounts are presented net of tax benefit (provision) of zero, $1 million, and $(0.4) million for the years ended December 31, 2017, 2016, and 2015, respectively.

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands		Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Cumulative Earnings	Cumulative Distributions to Stockholders
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment - adoption of ASU 2014-13	[1]	$ 9,728				$ 9,728
Balance at beginning of period (Previously Reported) at Dec. 31, 2014		1,256,141	$ 834	$ 1,774,030	$ 140,688	906,867	$ (1,566,278)
Balance at beginning of period at Dec. 31, 2014		1,265,869	$ 834	1,774,030	140,688	916,595	(1,566,278)
Beginning balance (in shares) (Previously Reported) at Dec. 31, 2014			83,443,141
Beginning balance (in shares) at Dec. 31, 2014			83,443,141
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		102,088				102,088
Other comprehensive income (loss)		(48,695)			(48,695)
Dividend reinvestment & stock purchase plans		6,834	$ 4	6,830
Dividend reinvestment & stock purchase plans (in shares)			418,508
Employee stock purchase and incentive plans		(7,981)	$ 7	(7,988)
Employee stock purchase and incentive plans (in shares)			753,429
Non-cash equity award compensation		11,806		11,806
Share repurchases		(88,785)	$ (63)	(88,722)
Share repurchases (in shares)			(6,452,313)
Common dividends declared		(94,871)					(94,871)
Balance at End of Period at Dec. 31, 2015		1,146,265	$ 782	1,695,956	91,993	1,018,683	(1,661,149)
Ending balance (in shares) at Dec. 31, 2015			78,162,765
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		131,252				131,252
Other comprehensive income (loss)		(20,140)			(20,140)
Employee stock purchase and incentive plans		(7,025)	$ 5	(7,030)
Employee stock purchase and incentive plans (in shares)			614,952
Non-cash equity award compensation		12,648		12,648
Share repurchases		(25,107)	$ (19)	(25,088)
Share repurchases (in shares)			(1,943,054)
Common dividends declared		(88,465)					(88,465)
Balance at End of Period at Dec. 31, 2016		1,149,428	$ 768	1,676,486	71,853	1,149,935	(1,749,614)
Ending balance (in shares) at Dec. 31, 2016			76,834,663
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		140,406				140,406
Other comprehensive income (loss)		13,395			13,395
Employee stock purchase and incentive plans		(3,834)	$ 4	(3,838)
Employee stock purchase and incentive plans (in shares)			375,651
Non-cash equity award compensation		10,378		10,378
Share repurchases		(9,187)	$ (6)	(9,181)
Share repurchases (in shares)			(610,342)
Common dividends declared		(88,299)					(88,299)
Balance at End of Period at Dec. 31, 2017		$ 1,212,287	$ 766	$ 1,673,845	$ 85,248	$ 1,290,341	$ (1,837,913)
Ending balance (in shares) at Dec. 31, 2017			76,599,972
[1]	Upon the adoption of ASU 2014-13 on January 1, 2015, we reclassified all residential loans held at amortized cost to fair value and eliminated our allowance for loan losses for residential loans.

Consolidated Statements of Cash

Consolidated Statements of Cash Flows $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)		Dec. 31, 2016USD ($)		Dec. 31, 2015USD ($)
Cash Flows From Operating Activities:
Net income	$ 140,406		$ 131,252		$ 102,088
Adjustments to reconcile net income to net cash used in operating activities:
Amortization of premiums, discounts, and debt issuance costs, net	(18,250)		(26,487)		(34,089)
Depreciation and amortization of non-financial assets	1,213		1,140		824
Purchases of held-for-sale loans	(5,705,842)		(4,953,619)		(11,045,813)
Proceeds from sales of held-for-sale loans	3,903,147		4,192,671		9,761,010
Principal payments on held-for-sale loans	52,956		80,033		80,299
Net settlements of derivatives	(9,950)		(7,301)		(59,406)
Reversal of provision for loan losses	0		(7,102)		(355)
Non-cash equity award compensation expense	10,378		12,648		11,806
Market valuation adjustments	(51,484)		12,917		51,975
Realized gains, net	(13,355)		(28,009)		(36,369)
Net change in:
Accrued interest receivable and other assets	(17,562)		42,572		(88,173)
Accrued interest payable, deferred tax liabilities, and accrued expenses and other liabilities	(4,820)		3,632		5,993
Net cash used in operating activities	(1,713,163)		(545,653)		(1,250,210)
Cash Flows From Investing Activities:
Purchases of loans held-for-investment	0		0		(22,219)
Proceeds from sales of loans held-for-investment	0		235,604		6,459
Principal payments on loans held-for-investment	523,561		798,831		500,239
Purchases of real estate securities	(600,875)		(318,268)		(179,265)
Proceeds from sales of real estate securities	228,420		497,191		439,493
Principal payments on real estate securities	77,778		80,055		138,630
Purchase of mortgage servicing rights	(643)		(15,338)		(32,388)
Proceeds from sales of mortgage servicing rights	52,137		58,642		17,235
Net change in restricted cash	6,479		(3,056)		(4,939)
Net cash provided by investing activities	286,857		1,333,661		863,245
Cash Flows From Financing Activities:
Proceeds from borrowings on short-term debt	4,895,889		3,918,083		8,570,291
Repayments on short-term debt	(4,036,634)		(4,981,547)		(8,534,802)
Proceeds from issuance of asset-backed securities	567,100		0		0
Repayments on asset-backed securities issued	(205,163)		(261,351)		(388,962)
Deferred debt issuance costs	(7,380)		0		(33)
Proceeds from issuance of long-term debt	245,000		771,287		1,400,222
Repayments on long-term debt	0		(118,146)		(527,371)
Net settlements of derivatives	(137)		(156)		(43)
Net proceeds from issuance of common stock	302		304		7,301
Net payments on repurchase of common stock	(8,417)		(28,073)		(85,820)
Taxes paid on equity award distributions	(4,136)		(7,329)		(8,448)
Dividends paid	(88,299)		(88,465)		(94,871)
Net cash provided by (used in) financing activities	1,358,125		(795,393)		337,464
Net decrease in cash and cash equivalents	(68,181)		(7,385)		(49,501)
Cash and cash equivalents at beginning of period	212,844	[1]	220,229		269,730
Cash and cash equivalents at end of period	144,663	[1]	212,844	[1]	220,229
Cash paid during the period for:
Interest	103,279		87,164		86,849
Taxes	2,746		1,303		165
Supplemental Noncash Information:
Real estate securities retained from loan securitizations	79,662		9,127		244,177
Retention of mortgage servicing rights from loan securitizations and sales	7,387		10,060		64,725
Transfers from loans held-for-sale to loans held-for-investment	1,245,430		1,063,860		1,555,814
Transfers from loans held-for-investment to loans held-for-sale	98,854		359,005		154,012
Transfers from residential loans to real estate owned	$ 4,220		$ 11,632		$ 8,500
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016, assets of consolidated VIEs totaled $1,259,774 and $798,317, respectively. At December 31, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $1,167,157 and $773,980, respectively. See Note 4 for further discussion.

Organization

Organization	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Organization	Organization Redwood Trust, Inc., together with its subsidiaries, focuses on investing in mortgages 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 two segments: Investment Portfolio and Residential Mortgage Banking. Our primary sources of income are net interest income from our investment portfolios and non-interest income from our mortgage banking activities. Net interest income consists of the interest income we earn on investments less the interest expense we incur on borrowed funds and other liabilities. Income from mortgage banking activities consists of the profit we seek to generate through the acquisition of loans and their subsequent sale or securitization. Redwood Trust, Inc. has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), beginning with its taxable year ended December 31, 1994. We generally refer, collectively, to Redwood Trust, Inc. and those of its subsidiaries that are not subject to subsidiary-level corporate income tax as “the REIT” or “our REIT.” We generally refer to subsidiaries of Redwood Trust, Inc. that are subject to subsidiary-level corporate income tax as “our operating subsidiaries” or “our taxable REIT subsidiaries” or “TRS.” Redwood was incorporated in the State of Maryland on April 11, 1994, and commenced operations on August 19, 1994. References herein to “Redwood,” the “company,” “we,” “us,” and “our” include Redwood Trust, Inc. and its consolidated subsidiaries, unless the context otherwise requires. Refer to Item 1 - Business in this Annual Report on Form 10-K for additional information on our business.

Basis of Presentation

Basis of Presentation	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements presented herein are at December 31, 2017 and December 31, 2016 , and for the years ended December 31, 2017 , 2016 , and 2015 . These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") — as prescribed by the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) — and the rules and regulations of the Securities and Exchange Commission ("SEC"). In the opinion of management, all normal and recurring adjustments to present fairly the financial condition of the company at December 31, 2017 and 2016 and results of operations for all periods presented have been made. 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 issued prior to 2012 where we maintain an ongoing involvement ("Legacy Sequoia"), as well as entities formed in connection with the securitization of Redwood Choice expanded-prime loans beginning in the third quarter of 2017 ("Sequoia Choice"). 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, servicing administrator, 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 owned at the consolidated Sequoia entities are shown under Residential loans held-for-investment at fair value 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 recorded interest income on the loans 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 12 for further discussion on ABS issued. 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	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Significant Accounting Policies Fair Value Measurements Our consolidated financial statements include assets and liabilities that are measured at their estimated fair values in accordance with GAAP. A fair value measurement represents the price at which an orderly transaction would occur between willing market participants at the measurement date. We develop fair values for financial assets or liabilities based on available inputs and pricing that is observed in the marketplace. After considering all available indications of the appropriate rate of return that market participants would require, we consider the reasonableness of the range indicated by the results to determine an estimate that is most representative of fair value. The markets for many of the assets that we invest in and issue are generally illiquid. Establishing fair values for illiquid assets and liabilities is inherently subjective and is often dependent upon our estimates and modeling assumptions. If we determine that either the volume and/or level of trading activity for an asset or liability has significantly decreased from normal market conditions, or price quotations or observable inputs are not associated with orderly transactions, the market inputs that we obtain might not be relevant. For example, broker or pricing service quotes might not be relevant if an active market does not exist for the financial asset or liability. The nature of the quote (for example, whether the quote is an indicative price or a binding offer) is also evaluated. In circumstances where relevant market inputs cannot be obtained, increased analysis and management judgment are required to estimate fair value. This generally requires us to establish internal assumptions about future cash flows and appropriate risk-adjusted discount rates. Regardless of the valuation inputs we apply, the objective of fair value measurement for assets is unchanged from what it would be if markets were operating at normal activity levels and/or transactions were orderly; that is, to determine the current exit price. See Note 5 for further discussion on fair value measurements. Fair Value Option We have the option to measure eligible financial assets, financial liabilities, and commitments at fair value on an instrument-by-instrument basis. This option is available when we first recognize a financial asset or financial liability or enter into a firm commitment. Subsequent changes in the fair value of assets, liabilities, and commitments where we have elected the fair value option are recorded in our consolidated statements of income. We elect the fair value option for certain residential loans, interest-only (“IO”) and certain subordinate securities, and MSRs. We generally elect the fair value option for residential loans that are held-for-sale, due to our intent to sell or securitize the loans in the near-term. We elect the fair value option for our IO and certain subordinate securities, and MSRs, for which we generally hedge market interest rate risk. As such, we seek to offset interest rate related changes in the values of these investments with changes in the values of their associated hedges through our consolidated statements of income. In addition, we elect the fair value option for the assets and liabilities of our consolidated Sequoia entities in accordance with GAAP accounting for collateralized financing entities ("CFEs"). See Note 5 for further discussion on the fair value option. Real Estate Loans Residential Loans - Held-for-Sale at Fair Value Residential loans held-for-sale include loans that we are marketing for sale to third parties, including transfers to securitization entities that we plan to sponsor and expect to be accounted for as sales for financial reporting purposes. We generally elect the fair value option for residential loans that we purchase with the intent to sell to third parties or transfer to Sequoia securitizations. Coupon interest is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due, at which point the loan is placed on nonaccrual status. Changes in fair value are recurring and are reported through our consolidated statements of income in Mortgage banking activities, net. Residential Loans - Held-for-Sale at Lower of Cost or Market Loans held-for-sale at lower of cost or market include certain residential loans. These loans are recorded and subsequently reported at the lower of their initial carrying amount or current fair value. Coupon interest is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due, at which point the loan is placed on nonaccrual status. Loans delinquent more than 90 days or in foreclosure are characterized as a serious delinquency. Cash principal and interest that is advanced from servicers subsequent to a residential loan becoming greater than 90 days past due is accounted for as a reduction in the outstanding loan principal balance. When a seriously delinquent loan previously placed on nonaccrual status has cured, meaning all delinquent principal and interest have been remitted by the borrower, the loan is placed back on accrual status. Changes in fair value are non-recurring and are reported through our consolidated statements of income in Mortgage banking activities, net. Residential Loans Held-for-Investment - At Fair Value Certain loans that were originally purchased with the intent to sell as part of our residential mortgage banking operations, and for which we elected the fair value option at acquisition, were subsequently reclassified to held-for-investment ("HFI") when the loans were transferred to our FHLBC member subsidiary and pledged as collateral for borrowings made from the Federal Home Loan Bank of Chicago (“FHLBC”). As of December 31, 2017 , our current intent is to hold these loans for longer-term investment while they are financed by the FHLBC. In addition, we record loans held at consolidated Sequoia entities at fair value. In accordance with accounting guidance for CFEs, we use the fair value of the ABS issued by the Sequoia entities (which we determined to be more observable) to determine the fair value of the loans held at these entities. Coupon interest for these loans is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due, at which point the loan is placed on nonaccrual status. When a seriously delinquent loan previously placed on nonaccrual status has cured, meaning all delinquent principal and interest have been remitted by the borrower, the loan is placed back on accrual status. Changes in fair value are recurring and are reported through our consolidated statements of income in Investment fair value changes, net. Repurchase Reserves We sell and have sold residential mortgage loans to various parties, including (1) securitization trusts, (2) Fannie Mae and Freddie Mac (“the Agencies”), and (3) banks and other financial institutions that purchase mortgage loans for investment or private label securitization. We may be required to repurchase residential mortgage loans we have sold, or loans associated with MSRs we have purchased, in the event of a breach of specified contractual representations and warranties made in connection with these sales and purchases. With respect to MSRs we purchased, if the associated residential loan was sold to one of the Agencies (which was typically the case), that Agency can require us, as the owner of the MSR, to repurchase the residential loan in the event of such a breach of representations and warranties even though we were not the party that sold the associated loan to that Agency. In January 2016, we discontinued the acquisition and aggregation of conforming loans for resale to the Agencies. We do not originate residential mortgage loans and believe the initial risk of loss due to loan repurchases (i.e., due to a breach of representations and warranties) would generally be a contingency to the companies from whom we acquired the loans or MSRs. However, in some cases, such as where loans or MSRs were acquired from companies that have since become insolvent, we may have to bear the loss associated with a loan repurchase. Furthermore, even if we do not have to ultimately bear such a loss because we can recover from the company that sold us the loan or the MSR, there could be a delay in making that recovery. We establish reserves for mortgage repurchase liabilities related to various representations and warranties that reflect management’s estimate of losses for loans for which we could have a repurchase obligation, based on a combination of factors. Such factors can include estimated future defaults and loan repurchase rates, the potential severity of loss in the event of defaults, and the probability of our being liable for a repurchase obligation. We establish a reserve at the time loans are sold and MSRs are purchased and continually update our reserve estimate during its life. The reserve for mortgage loan repurchase losses is included in other liabilities on our consolidated balance sheets and the related expense is included as a component of Mortgage banking activities, net and MSR income (loss), net on our consolidated statements of income. See Note 14 for further discussion on the residential repurchase reserves. Real Estate Securities, at Fair Value Our securities primarily consist of residential mortgage backed securities (“RMBS”) and may include other residential and commercial securities. We classify our real estate securities as trading or available-for-sale securities. Nearly all of our securities are supported by collateral designated as prime at the time of issuance. Prime residential loans are generally characterized by lower loan-to-value (“LTV”) ratios at the time the loans were originated, and are made to borrowers with higher Fair Isaac Corporation (“FICO”) scores. Trading Securities We primarily denote trading securities as those securities where we have adopted the fair value option. Trading securities are carried at their estimated fair values. Coupon interest is recognized as interest income when earned and deemed collectible. Changes in the fair value of securities designated as trading securities are reported in Investment fair value changes, net on our consolidated statements of income. Available-for-Sale Securities AFS securities are carried at their estimated fair value with unrealized gains and losses excluded from earnings (except when an other-than-temporary impairment (“OTTI”) is recognized, as discussed below) and reported in Accumulated other comprehensive income (“AOCI”), a component of stockholders’ equity. Interest income on AFS securities is accrued based on their outstanding principal balance and contractual terms and interest income is recognized based on the security’s effective interest rate. In order to calculate the effective interest rate, we must project cash flows over the remaining life of each security and make assumptions with regards to interest rates, prepayment rates, the timing and amount of credit losses, and other factors. On at least a quarterly basis, we review and, if appropriate, make adjustments to our cash flow projections based on input and analysis received from external sources, internal models, and our own judgments about interest rates, prepayment rates, the timing and amount of credit losses, and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in the yield and interest income recognized on these securities or in the recognition of OTTI as discussed below. For AFS securities purchased and held at a discount, a portion of the discount may be designated as non-accretable purchase discount (“credit reserve”), based on the cash flows we have projected for the security. The amount designated as credit reserve may be adjusted over time, based on our periodic evaluation of projected cash flows. If the performance of a security with a credit reserve is more favorable than previously forecasted, a portion of the credit reserve may be reallocated to accretable discount and recognized into interest income over time. Conversely, if the performance of a security with a credit reserve is less favorable than forecasted, the amount designated as credit reserve may be increased, or impairment charges and write-downs of such securities to a new cost basis could result. When the fair value of an AFS security is less than its amortized cost at the reporting date, the security is considered impaired. We assess our impaired securities at least quarterly to determine if the impairment is temporary or other-than-temporary (resulting in an OTTI). If we either - (i) intend to sell the impaired security; (ii) will more likely than not be required to sell the impaired security before it recovers in value; or (iii) if there has been an adverse change in cash flows - the impairment is deemed an OTTI. In the case of criteria (i) and (ii), we record the entire difference between the security’s estimated fair value and its amortized cost at the reporting date as an impairment through market valuation adjustments on our consolidated statements of income. If there has been an adverse change in cash flows, only the portion of the OTTI related to “credit” losses is recognized through other market valuation adjustments on our consolidated statements of income, with the remaining “non-credit” portion recognized through AOCI on our consolidated balance sheets. If the first two criteria are not met and there has not been an adverse change in cash flows, the impairment is considered temporary and the entire unrealized loss is recognized through AOCI on our consolidated balance sheets. For impaired AFS securities, to determine if there has been an adverse change in cash flows and if any portion of a resulting OTTI is related to credit losses, we compare the present value of the cash flows expected to be collected as of the current financial reporting date to the amortized cost basis of the security. The discount rate used to calculate the present value of expected future cash flows is the current yield used for income recognition purposes. If the present value of the current expected cash flows is less than the amortized cost basis, there has been an adverse change and the security is considered OTTI with the difference between these two amounts representing the credit loss. The determination as to whether an OTTI exists and, if so, the amount of credit impairment recognized in earnings is subjective, and based on information available at the time of the assessment as well as our estimates of future performance and cash flows. As a result, the timing and amount of OTTI constitute a material estimate that is susceptible to significant change. See Note 7 for further discussion on real estate securities. MSRs We recognize MSRs through the retention of servicing rights associated with residential mortgage loans that we acquired and subsequently transferred to third parties when the transfer meets the GAAP criteria for sale accounting, or through the direct acquisition of MSRs sold by third parties. We contract with licensed sub-servicers to perform servicing functions for loans associated with our MSRs. We have elected the fair value option for all of our MSRs, and they are initially recognized and subsequently carried at their estimated fair values. Servicing fee income from MSRs is recorded on a cash basis when received. Net servicing income and changes in the estimated fair value of MSRs are reported in MSR income (loss), net on our consolidated statements of income. See Note 8 for further discussion on MSRs. Cash and Cash Equivalents Cash and cash equivalents include non-restricted cash and highly liquid investments with original maturities of three months or less. The Company maintains its cash and cash equivalents with major financial institutions. Accounts at these institutions are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 for each bank. The Company is exposed to credit risk for amounts held in excess of the FDIC limit. The Company does not anticipate nonperformance by these institutions. Restricted Cash Restricted cash primarily includes cash held in association with borrowings from the Federal Home Loan Bank of Chicago, and cash associated with our risk-sharing transactions with the Agencies, as well as principal and interest payments that are collateral for, or payable to, owners of ABS issued by consolidated securitization entities. Accrued Interest Receivable Accrued interest receivable includes interest that is due and payable to us and deemed collectible. Cash interest is generally received within thirty days of recording the receivable. For financial assets where we have elected the fair value option, the associated accrued interest receivable on these assets is measured at fair value. For financial assets where we have not elected the fair value option, the associated accrued interest carrying values approximate fair values. Derivative Financial Instruments Derivative financial instruments we typically utilize include swaps, swaptions, financial futures contracts, CMBX credit default index swaps, and “To Be Announced” (“TBA”) contracts. These derivatives are primarily used to manage interest rate risk associated with our operations. In addition, we enter into certain residential loan purchase commitments (“LPCs”) and residential loan forward sale commitments (“FSCs”) that are treated as derivatives for financial reporting purposes. All derivative financial instruments are recorded at their estimated fair value on our consolidated balance sheets. Derivatives with positive fair values to us are reported as assets and derivatives with negative fair values to us are reported as liabilities. We classify each derivative as either (i) a trading instrument (no specific hedging designation for financial reporting purposes) or (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). Changes in the fair values of derivatives accounted for as trading instruments, including any associated interest income or expense, are recorded in our consolidated statements of income through MSR income (loss), net if they are used to manage risks associated with our MSR investments, through Mortgage banking activities , net if they are used to manage risks associated with our mortgage banking activities, or through Investment fair value changes, net if they are used to manage risks associated with our investments. Valuation changes related to residential LPCs and FSCs are included in Mortgage banking activities, net on our consolidated statements of income. Changes in the fair values of derivatives accounted for as cash flow hedges, to the extent they are effective, are recorded in Accumulated other comprehensive income, a component of equity on our consolidated balance sheets. Interest income or expense, and any ineffectiveness associated with these derivatives, are recorded as a component of net interest income in our consolidated statements of income. We measure the effective portion of cash flow hedges by comparing the change in fair value of the expected future variable cash flows of the derivative hedging instruments with the change in fair value of the expected future variable cash flows of the hedged item. We will discontinue a designated cash flow hedge relationship if (i) we determine that the hedging derivative is no longer expected to be effective in offsetting changes in the cash flows of the designated hedged item; (ii) the derivative expires or is sold, terminated, or exercised; (iii) the derivative is de-designated as a cash flow hedge; or (iv) it is probable that a forecasted transaction associated with the hedged item will not occur by the end of the originally specified time period. To the extent we de-designate or terminate a cash flow hedging relationship and the associated hedged item continues to exist, any unrealized gain or loss of the cash flow hedge at the time of de-designation remains in accumulated other comprehensive income and is amortized using the straight-line method through interest expense over the remaining life of the hedged item. Swaps and Swaptions Interest rate swaps are agreements in which (i) one counterparty exchanges a stream of fixed interest payments for another counterparty’s stream of variable interest cash flows; or (ii) each counterparty exchanges variable interest cash flows that are referenced to different indices. Interest rate swaptions are agreements that provide the owner the right but not the obligation to enter into an underlying interest rate swap with a counterparty in the future. We enter into swap and swaptions primarily to reduce significant changes in our income or equity caused by interest rate volatility. Certain of these interest rate agreements may be designated as cash flow hedges. Eurodollar Futures and Financial Futures Eurodollar futures are futures contracts on time deposits denominated in U.S. dollars at banks outside the United States. Eurodollar futures, unlike our other derivatives, have maturities of only three months. Therefore, in order to achieve the desired interest rate offset necessary to manage our risk, consecutively maturing contracts are required, resulting in a stated notional amount that is typically higher than our other derivatives. Financial futures are futures contracts on benchmark U.S. Treasury rates. TBA Agreements TBA agreements are forward contracts to purchase mortgage-backed securities that will be issued by a U.S. government sponsored enterprise in the future. We purchase or sell these derivatives to offset - to varying degrees - changes in the values of mortgage products for which we have exposure to interest rate volatility. Loan Purchase and Forward Sale Commitments We use the term LPCs to refer to agreements with third-party residential loan originators to purchase residential loans at a future date that qualify as a derivative under GAAP and we use the term FSCs to refer to agreements with third-parties to sell residential loans at a future date that also qualify as derivatives under GAAP. LPCs and FSCs are recorded at their estimated fair values on our consolidated balance sheets and changes in fair value are recurring and are reported through our consolidated statements of income in Mortgage banking activities, net. See Note 9 for further discussion on derivative financial instruments. Deferred Tax Assets and Liabilities Our deferred tax assets/liabilities are generated by temporary differences in GAAP and taxable income at our taxable subsidiaries. These differences generally reflect differing accounting treatments for GAAP and tax, such as accounting for mortgage servicing rights, discount and premium amortization, credit losses, asset impairments, and certain valuation estimates. As a result of these differences, we may recognize taxable income in periods prior to when we recognize income for GAAP. When this occurs, we pay the tax liability as required and establish a deferred tax asset. As the income is subsequently realized in future periods under GAAP, the deferred tax asset is reduced. We may also recognize GAAP income in periods prior to when we recognize income for tax. When this occurs, we establish a deferred tax liability for GAAP. As the income is subsequently realized in future periods for tax, the deferred tax liability is reduced. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider historical and projected future taxable income and capital gains as well as tax planning strategies in making this assessment. We determine the extent to which realization of this deferred asset is not assured and establish a valuation allowance accordingly. The estimate of net deferred tax assets could change in future periods to the extent that actual or revised estimates of future taxable income during the carryforward periods change from current expectations. Other Assets and Other Liabilities Other assets primarily consists of margin receivable, FHLBC stock, MSR holdback receivable, pledged collateral, guarantee asset, and REO. Other liabilities primarily consists of accrued compensation, guarantee obligations, deferred tax liabilities, margin payable, and residential loan and MSR repurchase reserves. FHLBC Stock In accordance with its borrowing agreement with the FHLBC, our FHLB-member subsidiary is required to purchase and hold stock in the FHLBC in an amount equal to a specified percentage of outstanding advances. FHLBC stock is considered a non-marketable, long-term investment, and is carried at cost. Because this stock can only be redeemed or sold at its par value, and only to the FHLBC, carrying value, or cost, approximates fair value. Dividends received from FHLBC stock are recorded in other income, net in our consolidated statements of income. Margin Receivable and Payable Margin receivable and payable result from margin calls between us and our derivatives, master repurchase agreements, and warehouse facilities counterparties, whereby we or the counterparty were required to post collateral. Agency Risk-Sharing - Other Assets and Liabilities During 2014 and 2015, we entered into various risk-sharing arrangements with Fannie Mae and Freddie Mac. Under these arrangements, we committed to assume the first 1.00% or 2.25% (depending on the arrangement) of losses realized on reference pools of conforming residential mortgage loans that we acquired and then sold to the Agencies. As part of these risk-sharing arrangements, during the 10 -year term of our first Fannie Mae arrangement, we receive monthly cash payments from Fannie Mae based on the monthly outstanding unpaid principal balance of the reference pool of loans, and for our Freddie Mac and our subsequent Fannie Mae arrangements, the Agencies charged us a reduced guarantee fee for the reference loans we delivered to them in exchange for mortgage backed securities, which we then sold. Under these arrangements we are required to pledge assets to the Agencies to collateralize our risk-sharing commitments to them throughout the terms of the arrangements. These pledged assets are held by a third-party custodian for the benefit of the Agencies. To the extent approved losses are incurred, the custodian will transfer collateral to the Agencies. As a result of these transactions, we recorded “pledged collateral” in the other assets line item, and “guarantee obligations” in the other liabilities line item, on our consolidated balance sheets. In addition, for the first Fannie Mae transaction, we recorded a “guarantee asset” in the other assets line item on our consolidated balance sheets. The guarantee obligations represent our commitments to assume losses under these arrangements. We amortize the guarantee obligations over the 10 -year terms of the arrangements based primarily on changes in the outstanding unpaid principal balance of loans in the reference pools, with a portion of the liabilities treated as a credit reserve that is not amortized into income. In addition, each period we assess the need for a separate loss allowance related to these arrangements, based on our estimate of credit losses inherent in the reference pools of loans. Income from cash payments received under the first Fannie Mae risk-sharing arrangement and income related to the amortization of the guarantee obligations of all three arrangements are recorded in other income, and market valuation changes of the guarantee asset are recorded in Investment fair value changes, net on our consolidated statements of income. Our consolidated balance sheets include assets of the special purpose entities ("SPEs") associated with these risk-sharing arrangements (i.e., the "pledged collateral" referred to above) that can only be used to settle obligations of these SPEs and liabilities of these SPEs for which the creditors of these SPEs (the Agencies) do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016 , assets of such SPEs totaled $48 million and $49 million , respectively, and liabilities of such SPEs totaled $19 million and $22 million , respectively. See Note 14 for further discussion on loss contingencies — risk-sharing. MSR Holdback Receivable MSR holdback receivable represents amounts due from third parties related to the sale of MSRs that will be received upon the final transfer of the related servicing documentation at the end of the holdback period. See Note 10 for further discussion on other assets. REO REO property acquired through, or in lieu of, foreclosure is initially recorded at fair value, and subsequently reported at the lower of its carrying amount or fair value (less estimated cost to sell). Changes in the fair value of an REO property that has a fair value at or below its carrying amount are recorded in Investment fair value changes, net on our consolidated statements of income. See Note 10 for further discussion on other assets. Short-Term Debt Short-term debt includes borrowings under master repurchase agreements, loan warehouse facilities, and other forms of borrowings that expire within one year with various counterparties. These borrowings are typically collateralized by cash, loans, or securities, and in some cases may be unsecured. If the value (as determined by the applicable counterparty) of the collateral securing those borrowings decreases, we may be subject to margin calls during the period the borrowings are outstanding. In instances where we do not satisfy the margin calls within the required time frame, the counterparty may retain the collateral and pursue any outstanding debt amount from us. See Note 11 for further discussion on short-term debt. Accrued Interest Payable Accrued interest payable includes interest that is due and payable to third parties. Interest is generally paid within one to three months of recording the payable, based upon our remittance requirements, and is paid semi-annually for our convertible and exchangeable debt. Interest on our FHLB borrowings is paid every 13 weeks. For borrowings where we have elected the fair value option, the associated accrued interest on these liabilities is measured at fair value. For financial liabilities where we have not elected the fair value option, the associated accrued interest carrying values approximate fair values. Asset-Backed Securities Issued ABS issued represents asset-backed securities issued through the Legacy Sequoia and Sequoia Choice securitization entities. Assets at these entities are held in the custody of securitization trustees and are not owned by Redwood. These trustees collect principal and interest payments (less servicing and related fees) from the assets and make corresponding principal and interest payments to the ABS investors. In accordance with accounting guidance for CFEs, we account for the ABS issued under our consolidated Sequoia entities at fair value, with periodic changes in fair value recorded in Investment fair value changes, net on our consolidated statements of income. See Note 12 for further discussion on ABS issued. Long-Term Debt FHLBC Borrowings FHLBC borrowings include amounts borrowed by our FHLB-member subsidiary, also referred to as “advances,” from the Federal Home Loan Bank of Chicago that are secured by eligible collateral, including, but not limited to, residential mortgage loans and residential mortgage-backed securities. FHLBC borrowings are carried at their unpaid principal balance and interest on advances is paid every 13 weeks from when each respective advance is made. If the value (as determined by the FHLBC) of the collateral securing those borrowings decreases, we may be subject to margin calls during the period the borrowings are outstanding. In instances where we do not satisfy the margin calls within the required time frame, the FHLBC may foreclose upon the collateral and pursue any outstanding debt amount from us. Convertible Notes Convertible notes include unsecured convertible and exchangeabl

Principles of Consolidation

Principles of Consolidation	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of Consolidation GAAP requires us to consider whether securitizations we sponsor and other transfers of financial assets should be treated as sales or financings, as well as whether any VIEs that we hold variable interests in – for example, certain legal entities often used in securitization and other structured finance transactions – should be included in our consolidated financial statements. The GAAP principles we apply require us to reassess our requirement to consolidate VIEs each quarter and therefore our determination may change based upon new facts and circumstances pertaining to each VIE. This could result in a material impact to our consolidated financial statements during subsequent reporting periods. Analysis of Consolidated VIEs As of December 31, 2017 , we consolidated certain Legacy Sequoia and our Sequoia Choice securitization entities that we determined were VIEs and for which we determined we were the primary beneficiary. 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, servicing administrator, or depositor of these entities or as a result of our having sold assets directly or indirectly to these entities. At December 31, 2017 , the estimated fair value of our investments in the consolidated Legacy Sequoia and Sequoia Choice entities was $14 million and $78 million , respectively. The following table presents a summary of the assets and liabilities of these VIEs. Table 4.1 – Assets and Liabilities of Consolidated VIEs December 31, 2017 Legacy Sequoia Sequoia Choice Total Consolidated VIEs (Dollars in Thousands) Residential loans, held-for-investment $ 632,817 $ 620,062 $ 1,252,879 Restricted cash 147 4 151 Accrued interest receivable 867 2,524 3,391 REO 3,353 — 3,353 Total Assets $ 637,184 $ 622,590 $ 1,259,774 Accrued interest payable $ 537 $ 2,031 $ 2,568 Accrued expenses and other liabilities — 4 4 Asset-backed securities issued 622,445 542,140 1,164,585 Total Liabilities $ 622,982 $ 544,175 $ 1,167,157 Number of VIEs 20 2 22 December 31, 2016 Legacy Sequoia Sequoia Choice Total Consolidated VIEs (Dollars in Thousands) Residential loans, held-for-investment $ 791,636 $ — $ 791,636 Restricted cash 148 — 148 Accrued interest receivable 1,000 — 1,000 REO 5,533 — 5,533 Total Assets $ 798,317 $ — $ 798,317 Accrued interest payable $ 518 $ — $ 518 Asset-backed securities issued 773,462 — 773,462 Total Liabilities $ 773,980 $ — $ 773,980 Number of VIEs 20 — 20 We consolidate the assets and liabilities of certain Sequoia securitization entities, as we did not meet the GAAP sale criteria at the time we transferred financial assets to these entities. Our involvement in consolidated Sequoia entities continues in the following ways: (i) we continue to hold subordinate investments in each entity, and for certain entities, more senior investments; (ii) we maintain certain discretionary rights associated with our sponsorship of, or our subordinate investments in, each entity; and (iii) we continue to hold a right to call the assets of certain entities (once they have been paid down below a specified threshold) at a price equal to, or in excess of, the current outstanding principal amount of the entity’s asset-backed securities issued. These factors have resulted in our continuing to consolidate the assets and liabilities of these Sequoia entities in accordance with GAAP. Analysis of Unconsolidated VIEs with Continuing Involvement Since 2012, we have transferred residential loans to 36 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 certain of these transfers to securitization entities, for the transferred loans where we held the servicing rights prior to the transfer and continued to hold the servicing rights following the transfer, 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 servicing rights (which we retain a third-party sub-servicer to perform) and the receipt of interest income associated with the securities we retained. During the years ended December 31, 2017 and 2016 , we transferred residential loans to seven and three Sequoia securitization entities sponsored by us, respectively, and accounted for these transfers as sales for financial reporting purposes. The following table presents information related to securitization transactions that occurred during the years ended December 31, 2017 and 2016 . Table 4.2 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Years Ended December 31, (In Thousands) 2017 2016 Principal balance of loans transferred $ 2,573,789 $ 1,036,584 Trading securities retained, at fair value 66,321 3,573 AFS securities retained, at fair value 13,341 5,554 MSRs recognized 7,123 6,451 The following table summarizes the cash flows during the years ended December 31, 2017 and 2016 between us and the unconsolidated VIEs sponsored by us and accounted for as sales since 2012. Table 4.3 – Cash Flows Related to Unconsolidated VIEs Sponsored by Redwood Years Ended December 31, (In Thousands) 2017 2016 Proceeds from new transfers $ 2,563,499 $ 1,057,688 MSR fees received 14,302 13,842 Funding of compensating interest, net (151 ) (338 ) Cash flows received on retained securities 27,156 30,191 The following table presents the key weighted average assumptions used to measure MSRs and securities retained at the date of securitization for securitizations completed during 2017 and 2016 . Table 4.4 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Year Ended December 31, 2017 Year Ended December 31, 2016 At Date of Securitization MSRs Senior IO Securities Subordinate Securities MSRs Senior IO Securities Subordinate Securities Prepayment rates 9 % 10 % 10 % 21 % N/A 15 % Discount rates 11 % 14 % 5 % 11 % N/A 6 % Credit loss assumptions N/A 0.25 % 0.25 % N/A N/A 0.25 % The following table presents additional information at December 31, 2017 and December 31, 2016 , related to unconsolidated VIEs sponsored by Redwood and accounted for as sales since 2012. Table 4.5 – Unconsolidated VIEs Sponsored by Redwood (In Thousands) December 31, 2017 December 31, 2016 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 101,426 $ 41,909 Subordinate securities, classified as AFS 219,255 234,025 Mortgage servicing rights 60,980 58,800 Maximum loss exposure (1) $ 381,661 $ 334,734 Assets transferred: Principal balance of loans outstanding $ 8,364,148 $ 6,870,398 Principal balance of loans 30+ days delinquent 27,926 21,427 (1) Maximum loss exposure from our involvement with unconsolidated VIEs pertains to the carrying value of our securities and MSRs retained from these VIEs and represents estimated losses that would be incurred under severe, hypothetical circumstances, such as if the value of our interests and any associated collateral declines to zero. This does not include, for example, any potential exposure to representation and warranty claims associated with our initial transfer of loans into a securitization. The following table presents key economic assumptions for assets retained from unconsolidated VIEs and the sensitivity of their fair values to immediate adverse changes in those assumptions at December 31, 2017 and December 31, 2016 . Table 4.6 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood December 31, 2017 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2017 $ 60,980 $ 33,773 $ 286,908 Expected life (in years) (2) 8 6 13 Prepayment speed assumption (annual CPR) (2) 9 % 10 % 11 % Decrease in fair value from: 10% adverse change $ 2,022 $ 1,371 $ 611 25% adverse change 4,839 3,289 1,506 Discount rate assumption (2) 11 % 11 % 5 % Decrease in fair value from: 100 basis point increase $ 2,386 $ 1,158 $ 25,827 200 basis point increase 4,597 2,265 47,885 Credit loss assumption (2) N/A 0.25 % 0.25 % Decrease in fair value from: 10% higher losses N/A $ — $ 1,551 25% higher losses N/A — 3,873 December 31, 2016 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2016 $ 58,800 $ 26,618 $ 249,317 Expected life (in years) (2) 7 6 12 Prepayment speed assumption (annual CPR) (2) 11 % 8 % 12 % Decrease in fair value from: 10% adverse change $ 2,226 $ 1,075 $ 997 25% adverse change 5,284 2,569 2,494 Discount rate assumption (2) 11 % 8 % 6 % Decrease in fair value from: 100 basis point increase $ 2,088 $ 1,105 $ 19,574 200 basis point increase 4,032 2,128 36,574 Credit loss assumption (2) N/A 0.25 % 0.25 % Decrease in fair value from: 10% higher losses N/A $ 19 $ 1,174 25% higher losses N/A 49 2,933 (1) Senior securities included $34 million and $27 million of interest-only securities at December 31, 2017 and December 31, 2016 , respectively. (2) Expected life, prepayment speed assumption, discount rate assumption, and credit loss assumption presented in the tables above represent weighted averages. Analysis of Third-Party VIEs Third-party VIEs are securitization entities in which we maintain an economic interest, but do not sponsor. Our economic interest may include several securities from the same third-party VIE, and in those cases, the analysis is performed in consideration of all of our interests. The following table presents a summary of our interests in third-party VIEs at December 31, 2017 , grouped by security type. Table 4.7 – Third-Party Sponsored VIE Summary (Dollars in Thousands) December 31, 2017 Mortgage-Backed Securities Senior $ 177,191 Re-REMIC 38,875 Subordinate 939,763 Total Investments in Third-Party Sponsored VIEs $ 1,155,829 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	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments For financial reporting purposes, we follow a fair value hierarchy established under GAAP that is used to determine the fair value of financial instruments. This hierarchy prioritizes relevant market inputs in order to determine an “exit price” at the measurement date, or the price at which an asset could be sold or a liability could be transferred in an orderly process that is not a forced liquidation or distressed sale. Level 1 inputs are observable inputs that reflect quoted prices for identical assets or liabilities in active markets. Level 2 inputs are observable inputs other than quoted prices for an asset or liability that are obtained through corroboration with observable market data. Level 3 inputs are unobservable inputs (e.g., our own data or assumptions) that are used when there is little, if any, relevant market activity for the asset or liability required to be measured at fair value. In certain cases, inputs used to measure fair value fall into different levels of the fair value hierarchy. In such cases, the level at which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input requires judgment and considers factors specific to the asset or liability being measured. The following table presents the carrying values and estimated fair values of assets and liabilities that are required to be recorded or disclosed at fair value at December 31, 2017 and December 31, 2016 . Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities December 31, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value (In Thousands) Assets Residential loans, held-for-sale At fair value $ 1,427,052 $ 1,427,052 $ 834,193 $ 834,193 At lower of cost or fair value 893 993 1,206 1,365 Residential loans, held-for-investment At fair value 3,687,265 3,687,265 3,052,652 3,052,652 Trading securities 968,844 968,844 445,687 445,687 Available-for-sale securities 507,666 507,666 572,752 572,752 MSRs 63,598 63,598 118,526 118,526 Cash and cash equivalents 144,663 144,663 212,844 212,844 Restricted cash 2,144 2,144 8,623 8,623 Accrued interest receivable 27,013 27,013 18,454 18,454 Derivative assets 15,718 15,718 36,595 36,595 REO (1) 3,354 3,806 5,533 5,560 Margin receivable (1) 85,044 85,044 68,038 68,038 FHLBC stock (1) 43,393 43,393 43,393 43,393 Guarantee asset (1) 2,869 2,869 4,092 4,092 Commercial loans (1) — — 2,700 2,700 Pledged collateral (1) 42,615 42,615 42,875 42,875 Liabilities Short-term debt facilities $ 1,688,412 $ 1,688,412 $ 791,539 $ 791,539 Accrued interest payable 18,435 18,435 9,608 9,608 Margin payable (2) 390 390 12,783 12,783 Guarantee obligation (2) 19,487 18,878 21,668 22,181 Derivative liabilities 63,081 63,081 66,329 66,329 ABS issued at fair value, net 1,164,585 1,164,585 773,462 773,462 FHLBC long-term borrowings 1,999,999 1,999,999 1,999,999 1,999,999 Convertible notes, net 686,759 692,369 482,195 493,365 Trust preferred securities and subordinated notes, net 138,535 103,230 138,489 96,255 (1) These assets are included in Other assets on our consolidated balance sheets. (2) These liabilities are included in Accrued expenses and other liabilities on our consolidated balance sheets. During the years ended December 31, 2017 and 2016 , we elected the fair value option for $47 million and $5 million of residential senior securities, $594 million and $288 million of subordinate securities, $5.64 billion and $4.85 billion of residential loans (principal balance), and $8 million and $25 million of MSRs, respectively. 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, and for certain securities we purchase, including IO securities and fixed-rate securities rated investment grade or higher. The following table presents the assets and liabilities that are reported at fair value on our consolidated balance sheets on a recurring basis at December 31, 2017 and December 31, 2016 , as well as the fair value hierarchy of the valuation inputs used to measure fair value. Table 5.2 – Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2017 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 5,114,317 $ — $ — $ 5,114,317 Trading securities 968,844 — — 968,844 Available-for-sale securities 507,666 — — 507,666 Derivative assets 15,718 134 10,164 5,420 MSRs 63,598 — — 63,598 Pledged collateral 42,615 42,615 — — FHLBC stock 43,393 — 43,393 — Guarantee asset 2,869 — — 2,869 Liabilities Derivative liabilities $ 63,081 $ 3,808 $ 55,567 $ 3,706 ABS issued 1,164,585 — — 1,164,585 December 31, 2016 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 3,886,845 $ — $ — $ 3,886,845 Trading securities 445,687 — — 445,687 Available-for-sale securities 572,752 — — 572,752 Derivative assets 36,595 8,300 24,980 3,315 MSRs 118,526 — — 118,526 Pledged collateral 42,875 42,875 — — FHLBC stock 43,393 — 43,393 — Guarantee asset 4,092 — — 4,092 Liabilities Derivative liabilities $ 66,329 $ 5,609 $ 56,919 $ 3,801 ABS issued 773,462 — — 773,462 The following table presents additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2017 and 2016. Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets Liabilities Residential Loans Trading Securities AFS Securities MSRs Guarantee Asset Derivatives (1) ABS Issued (In Thousands) Beginning balance - December 31, 2016 $ 3,886,845 $ 445,687 $ 572,752 $ 118,526 $ 4,092 $ (486 ) $ 773,462 Acquisitions 5,741,427 640,760 39,700 8,026 — — 567,099 Sales (3,982,683 ) (137,886 ) (90,440 ) (52,788 ) — — — Principal paydowns (573,168 ) (19,224 ) (58,554 ) — — — (205,163 ) Gains (losses) in net income, net 46,119 39,507 31,892 (10,166 ) (1,223 ) 37,220 29,187 Unrealized losses in OCI, net — — 12,316 — — — — Other settlements, net (2) (4,223 ) — — — — (35,020 ) — Ending balance - December 31, 2017 $ 5,114,317 $ 968,844 $ 507,666 $ 63,598 $ 2,869 $ 1,714 $ 1,164,585 Assets Liabilities (In Thousands) Residential Loans Commercial Loans Trading Securities AFS Securities MSRs Guarantee Asset Derivatives (1) Commercial Secured Borrowings ABS Issued 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 4,747,564 37,625 292,875 34,520 25,362 — — — — Sales (3,813,538 ) (81,523 ) (244,219 ) (252,696 ) (62,440 ) — — — — Principal paydowns (806,081 ) (476 ) (17,827 ) (62,229 ) — — — (306 ) (208,215 ) Gains (losses) in net income, net (33,893 ) 2,791 10,847 48,399 (36,372 ) (1,605 ) 30,193 2,369 (8,275 ) Unrealized gains in OCI, net — — — (24,487 ) — — — — — Other settlements, net (2) (4,758 ) (65,215 ) — — — — (33,887 ) (65,215 ) (6,868 ) Ending balance - December 31, 2016 $ 3,886,845 $ — $ 445,687 $ 572,752 $ 118,526 $ 4,092 $ (486 ) $ — $ 773,462 (1) For the purpose of this presentation, derivative assets and liabilities, which consist of loan purchase and forward sale commitments, are presented on a net basis. (2) Other settlements, net for residential loans represents the transfer of loans to REO, and for derivatives, the transfer of the fair value of loan purchase commitments at the time loans are acquired to the basis of residential loans. For commercial secured borrowings and commercial loans, the reduction in 2016 represents the derecognition of our commercial secured borrowings and related commercial A-note investments upon sale of the associated B-notes. The following table presents the portion of gains or losses included in our consolidated statements of income that were attributable to Level 3 assets and liabilities recorded at fair value on a recurring basis and held at December 31, 2017 , 2016 , and 2015 . Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the years ended December 31, 2017 , 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 December 31, 2017 , 2016 , and 2015 Included in Net Income Included in Net Income Years Ended December 31, (In Thousands) 2017 2016 2015 Assets Residential loans at Redwood $ 523 $ (17,370 ) $ (5,541 ) Residential loans at consolidated Sequoia entities 17,727 (14,391 ) 7,422 Commercial loans — — (2,620 ) Trading securities 28,612 7,184 (13,391 ) Available-for-sale securities (1,011 ) (368 ) (246 ) MSRs 1,277 42,964 (3,471 ) Loan purchase commitments 3,243 — 4,252 Loan forward sale commitments 2,177 — — Other assets - Guarantee asset (1,223 ) (1,605 ) (1,504 ) Liabilities Loan purchase commitments $ (3,706 ) $ (486 ) $ — Commercial secured borrowing — — 3,011 ABS issued (29,187 ) 8,275 (8,366 ) The following table presents information on assets recorded at fair value on a non-recurring basis at December 31, 2017 and December 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 sheets at December 31, 2017 and December 31, 2016 . Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Gain (Loss) for Year Ended December 31, 2017 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2017 Assets Residential loans, at lower of cost or fair value $ 854 $ — $ — $ 854 $ 22 REO 2,034 — — 2,034 (393 ) Gain (Loss) for Year Ended December 31, 2016 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2016 Assets Residential loans, at lower of cost or fair value $ 867 $ — $ — $ 867 $ (17 ) Commercial loans, at lower of cost or fair value 2,700 — — 2,700 (300 ) REO 5,207 — — 5,207 (1,831 ) The following table presents the net market valuation gains and losses recorded in each line item of our consolidated statements of income for the years ended December 31, 2017 , 2016 , and 2015 . Table 5.6 – Market Valuation Gains and Losses, Net Years Ended December 31, (In Thousands) 2017 2016 2015 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ 31,493 $ 5,786 $ 3,712 Residential loan purchase and forward sale commitments 37,880 25,613 50,234 Commercial loans, at fair value — 433 10,265 Sequoia securities — 1,455 (15,261 ) Risk management derivatives, net (17,529 ) 3,158 (42,468 ) Total mortgage banking activities, net (1) $ 51,844 $ 36,445 $ 6,482 Investment Fair Value Changes, Net Residential loans held-for-investment at Redwood $ (5,765 ) $ (23,102 ) $ (6,337 ) Trading securities 39,526 9,666 (2,019 ) Valuation adjustments on commercial loans held-for-sale 300 (307 ) — Net investments in Legacy Sequoia entities (2) (8,027 ) (4,200 ) (1,192 ) Net investments in Sequoia Choice entities (2) (323 ) — — Risk-sharing investments (1,484 ) (1,151 ) (1,886 ) Risk management derivatives, net (12,842 ) (9,112 ) (9,677 ) Impairments on AFS securities (1,011 ) (368 ) (246 ) Total investment fair value changes, net $ 10,374 $ (28,574 ) $ (21,357 ) MSR Income (Loss), Net MSRs $ (10,166 ) $ (36,372 ) $ (24,392 ) Risk management derivatives, net (568 ) 15,584 (12,708 ) Total MSR loss, net (3) $ (10,734 ) $ (20,788 ) $ (37,100 ) Total Market Valuation Gains (Losses), Net $ 51,484 $ (12,917 ) $ (51,975 ) (1) 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. (2) Includes changes in fair value of the residential loans held-for-investment, REO and the ABS issued at the entities, which netted together represent the change in value of our retained investments at the consolidated VIEs. (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. Valuation Policy We maintain a policy that specifies the methodologies we use to value different types of financial instruments. Significant changes to the valuation methodologies are reviewed by members of senior management to confirm the changes are appropriate and reasonable. Valuations based on information from external sources are performed on an instrument-by-instrument basis with the resulting amounts analyzed individually against internal calculations as well as in the aggregate by product type classification. Initial valuations are performed by our portfolio management groups using the valuation processes described below. Our finance department then independently reviews all fair value estimates using available market, portfolio, and industry information to ensure they are reasonable. Finally, members of senior management review all fair value estimates, including an analysis of the methodology and valuation changes from prior reporting periods. Valuation Process We estimate fair values for financial assets or liabilities based on available inputs observed in the marketplace as well as unobservable inputs. We primarily use two pricing valuation techniques: market comparable pricing and discounted cash flow analysis. Market comparable pricing is used to determine the estimated fair value of certain instruments by incorporating known inputs and performance metrics, such as observed prepayment rates, delinquencies, severities, credit support, recent transaction prices, pending transactions, or prices of other similar instruments. Discounted cash flow analysis techniques generally consist of developing an estimate of future cash flows that are expected to occur over the life of an instrument and then discounting those cash flows at a rate of return that results in an estimate of fair value. After considering all available indications of the appropriate rate of return that market participants would require, we consider the reasonableness of the range indicated by the results to determine an estimate that is most representative of fair value. We also consider counterparty credit quality and risk as part of our fair value assessments. The following table provides quantitative information about the significant unobservable inputs used in the valuation of our Level 3 assets and liabilities measured at fair value. Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments December 31, 2017 Fair Value Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average Assets Residential loans, at fair value: Jumbo fixed rate loans $ 3,372,329 Whole loan spread to TBA price $ 2.25 - $ 3.11 $ 3.09 Whole loan spread to swap rate 175 - 225 bps 224 bps Jumbo hybrid loans 251,847 Prepayment rate (annual CPR) 15 - 15 % 15 % Whole loan spread to swap rate 100 - 185 bps 159 bps Jumbo loans committed to sell 237,262 Whole loan committed sales price $ 100.78 - $ 103.01 $ 101.42 Loans held by Legacy Sequoia (1) 632,817 Liability price N/A N/A Loans held by Sequoia Choice (1) 620,062 Liability price N/A N/A Residential loans, at lower of cost or fair value 854 Loss severity 12 - 30 % 18 % Trading and AFS securities 1,476,510 Discount rate 3 - 15 % 5 % Prepayment rate (annual CPR) — - 50 % 10 % Default rate — - 27 % 3 % Loss severity — - 40 % 22 % MSRs 63,598 Discount rate 10 - 130 % 11 % Prepayment rate (annual CPR) 5 - 26 % 9 % Per loan annual cost to service $ 79 - $ 82 $ 82 Guarantee asset 2,869 Discount rate 11 - 11 % 11 % Prepayment rate (annual CPR) 13 - 13 % 13 % REO 2,034 Loss severity 6 - 42 % 21 % Liabilities Loan purchase commitments, net (2) 462 MSR multiple 1.7 - 5.1 x 3.6 x Pull-through rate 9 - 100 % 75 % Whole loan spread to TBA price $ 2.25 - $ 3.10 $ 3.06 Whole loan spread to swap rate - fixed rate 175 - 225 bps 225 bps Prepayment rate (annual CPR) 15 - 15 % 15 % Whole loan spread to swap rate - hybrid 100 - 185 bps 151 bps ABS issued (1) 1,164,585 Discount rate 3 - 15 % 4 % Prepayment rate (annual CPR) 8 - 25 % 17 % Default rate — - 16 % 3 % Loss severity 20 - 54 % 23 % (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 at Redwood Estimated fair values for residential loans are determined using models that incorporate various observable inputs, including pricing information from whole loan sales and securitizations. Certain significant inputs in these models are considered unobservable and are therefore Level 3 in nature. Pricing inputs obtained from market whole loan transaction activity include indicative spreads to indexed TBA prices and indexed swap rates for fixed-rate loans and indexed swap rates for hybrid loans (Level 3). Pricing inputs obtained from market securitization activity include indicative spreads to indexed TBA prices for senior RMBS, indexed swap rates for subordinate RMBS, and credit support levels (Level 3). Other unobservable inputs also include assumed future prepayment rates. Observable inputs include benchmark interest rates, swap rates, and TBA prices. These assets would generally decrease in value based upon an increase in the credit spread, prepayment speed, or credit support assumptions. Residential loans at consolidated Sequoia entities We have elected to account for the consolidated Sequoia securitization entities as collateralized financing entities in accordance with GAAP. A CFE is a variable interest entity that holds financial assets and issues beneficial interests in those assets, and these beneficial interests have contractual recourse only to the related assets of the CFE. Accounting guidance for CFEs allow companies to elect to measure both the financial assets and financial liabilities of a CFE using the more observable of the fair value of the financial assets or fair value of the financial liabilities. Pursuant to this guidance, we use the fair value of the ABS issued by the Sequoia CFEs (which we determined to be more observable) to determine the fair value of the loans held at these entities, whereby the net assets we consolidate in our financial statements related to these entities represent the estimated fair value of our retained interests in the Sequoia CFEs. 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 analysis 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, loss severities, or a decrease in prepayment rates or credit support. As part of our securities valuation process, we request and consider indications of value from third-party securities dealers. For purposes of pricing our securities at December 31, 2017 , we received dealer price indications on 80% of our securities, representing 85% 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, loan purchase commitments, and forward sale commitments. 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 and FSC fair values for jumbo loans are estimated based on the estimated fair values of the underlying loans (as described in " Residential loans " above). In addition, fair value for LPCs are estimated based on the probability that the mortgage loan will be purchased (the "Pull-through rate") (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. 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 market discount rates, assumed future prepayment rates of serviced loans, and the market cost of servicing. 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 2% 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 unobservable inputs include assumed future prepayment rates and market discount rate (Level 3). An increase in prepayment rates or 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 (Level 1). 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 related to risk-sharing transactions with the Agencies, cash held in association with borrowings from the FHLBC, and cash held at consolidated Sequoia 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. These obligations are initially recorded at fair value and subsequently carried at amortized cost. 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 assumed future prepayment rates, credit losses, and market discount rates. A decrease in future prepayment rates or discount rates, or an increase in credit losses, would generally cause the fair value of the guarantee obligations to decrease (i.e., become a larger liability). 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). Additionally, at December 31, 2017 , short-term debt included unsecured convertible senior notes with a maturity of less than one year. The fair value of the convertible notes is determined using quoted prices in generally active markets (Level 2). ABS issued ABS issued includes asset-backed securities issued through the Legacy Sequoia and Sequoia Choice 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 analysis 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 cash flow models use significant unobservable inputs such as a discount rate, prepayment rate, default rate, loss severity and credit support. A decrease in credit losses or discount rates, or an increase in prepayment rates, would generally cause the fair value of the ABS issued to decrease (i.e., become a larger liability). 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). Convertible notes Convertible notes include unsecured convertible and exchangeable senior notes. Fair values are determined using quoted prices in generally active markets (Level 2). Trust preferred securities and subordinated notes Estimated fair values of trust preferred securities and subordinated notes are determined using discounted cash flow analysis valuation techniques. Significant inputs in the valuation analysis are predominantly Level 3, due to the nature of these instruments and the lack of readily available market quotes. Estimated fair values are based on applying the market indicators to generate discounted cash flows (Level 3).

Residential Loans

Residential Loans	12 Months Ended
	Dec. 31, 2017
Receivables [Abstract]
Residential Loans	Residential Loans We acquire residential loans from third-party originators and may sell or securitize these loans or hold them for investment. The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia entities at December 31, 2017 and December 31, 2016 . Table 6.1 – Classifications and Carrying Values of Residential Loans December 31, 2017 Legacy Sequoia (In Thousands) Redwood Sequoia Choice Total Held-for-sale At fair value $ 1,427,052 $ — $ — $ 1,427,052 At lower of cost or fair value 893 — — 893 Total held-for-sale 1,427,945 — — 1,427,945 Held-for-investment at fair value 2,434,386 632,817 620,062 3,687,265 Total Residential Loans $ 3,862,331 $ 632,817 $ 620,062 $ 5,115,210 December 31, 2016 Legacy Sequoia (In Thousands) Redwood Sequoia Choice Total Held-for-sale At fair value $ 834,193 $ — $ — $ 834,193 At lower of cost or fair value 1,206 — — 1,206 Total held-for-sale 835,399 — — 835,399 Held-for-investment at fair value 2,261,016 791,636 — 3,052,652 Total Residential Loans $ 3,096,415 $ 791,636 $ — $ 3,888,051 At December 31, 2017 , we owned mortgage servicing rights associated with $3.03 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 sheets. We contract with licensed sub-servicers that perform servicing functions for these loans. Residential Loans Held-for-Sale At Fair Value At December 31, 2017 , we owned 2,009 loans held-for-sale at fair value with an aggregate unpaid principal balance of $1.41 billion and a fair value of $1.43 billion , compared to 1,114 loans with an aggregate unpaid principal balance of $0.83 billion and a fair value of $0.83 billion at December 31, 2016 . At December 31, 2017 , one of these loans with a fair value of $0.5 million was greater than 90 days delinquent and none of these loans were in foreclosure. At December 31, 2016 , none of these loans were greater than 90 days delinquent or in foreclosure. During the years ended December 31, 2017 and 2016 , we purchased $5.64 billion and $4.85 billion (principal balance) of loans, respectively, for which we elected the fair value option, and we sold $4.21 billion and $4.04 billion (principal balance) of loans, respectively, for which we recorded net market valuation gain s of $31 million and $6 million , respectively, through Mortgage banking activities, net on our consolidated statements of income. At December 31, 2017 , loans held-for-sale with a market value of $1.15 billion were pledged as collateral under short-term borrowing agreements. At Lower of Cost or Fair Value At December 31, 2017 and December 31, 2016 , we held four and seven residential loans, respectively, at the lower of cost or fair value with $1 million and $2 million in outstanding principal balance, respectively, and a carrying value of $1 million for both periods. At both December 31, 2017 and December 31, 2016 , one of these loans with an unpaid principal balance of $0.3 million was greater than 90 days delinquent and none of these loans were in foreclosure. Residential Loans Held-for-Investment at Fair Value At Redwood At December 31, 2017 , we owned 3,292 held-for-investment loans at Redwood with an aggregate unpaid principal balance of $2.41 billion and a fair value of $2.43 billion , compared to 3,068 loans with an aggregate unpaid principal balance of $2.23 billion and a fair value of $2.26 billion at December 31, 2016 . At December 31, 2017 , none of these loans was greater than 90 days delinquent or in foreclosure. At December 31, 2016 , one of these loans with an unpaid principal balance of $0.2 million was greater than 90 days delinquent and none of these loans were in foreclosure. During the years ended December 31, 2017 and 2016 , we transferred loans with a fair value of $0.60 billion and $1.06 billion , respectively, from held-for-sale to held-for-investment. During the years ended December 31, 2017 and 2016 , we transferred loans with a fair value of $99 million and $56 million , respectively, from held-for-investment to held-for-sale. During the year s ended December 31, 2017 and 2016 , we recorded net market valuation loss es of $5 million and $23 million , respectively, on residential loans held-for-investment at fair value through Investment fair value changes, net on our consolidated statements of income. At December 31, 2017 , loans with a fair value of $2.43 billion were pledged as collateral under a borrowing agreement with the FHLBC. The outstanding loans held-for-investment at Redwood at December 31, 2017 were prime-quality, first lien loans, of which 96% were originated between 2013 and 2017, and 4% were originated in 2012 and prior years. The weighted average FICO score of borrowers backing these loans was 770 (at origination) and the weighted average loan-to-value ("LTV") ratio of these loans was 65% (at origination). At December 31, 2017 , these loans were comprised of 92% fixed-rate loans with a weighted average coupon of 4.08% , and the remainder were hybrid or ARM loans with a weighted average coupon of 4.07% . At Consolidated Legacy Sequoia Entities At December 31, 2017 , we owned 3,178 held-for-investment loans at consolidated Legacy Sequoia entities, with an aggregate unpaid principal balance of $698 million and a fair value of $633 million , as compared to 3,735 loans at December 31, 2016 with an aggregate unpaid principal balance of $887 million and a fair value of $792 million . At origination, the weighted average FICO score of borrowers backing these loans was 728 , the weighted average LTV ratio of these loans was 66% , and the loans were nearly all first lien and prime-quality. At December 31, 2017 and December 31, 2016 , the unpaid principal balance of loans at consolidated Sequoia entities delinquent greater than 90 days was $25 million and $30 million , respectively, of which the unpaid principal balance of loans in foreclosure was $10 million and $11 million , respectively. During the years ended December 31, 2017 and 2016 , we recorded a net market valuation gain of $23 million and a net market valuation loss of $14 million , respectively, on these loans through Investment fair value changes, net on our consolidated statements of income. Pursuant to the collateralized financing entity guidelines, the market valuation changes of these loans are based on the estimated fair value of the associated ABS issued. The net impact to our income statement associated with our retained economic investment in the Legacy Sequoia securitization entities is presented in Note 5. At Consolidated Sequoia Choice Entities At December 31, 2017 , we owned 806 held-for-investment loans at consolidated Sequoia Choice entities, with an aggregate unpaid balance of $605 million and a fair value of $620 million . There were no loans held at the Sequoia Choice entities a t December 31, 2016 . At origination, the weighted average FICO score of borrowers backing these loans was 742 , the weighted average LTV ratio of these loans was 75% , and the loans were all first lien and prime-quality. At December 31, 2017 , none of these loans were greater than 90 days delinquent or in foreclosure. During the year ended December 31, 2017 , we transferred loans with a fair value of $646 million from held-for-sale to held-for-investment, associated with Choice securitizations. During the year ended December 31, 2017 , we recorded a net market valuation loss of $5 million on these loans through Investment fair value changes, net on our consolidated statements of income. Pursuant to the collateralized financing entity guidelines, the market valuation changes of these loans are based on the estimated fair value of the ABS issued associated with Choice securitizations . The net impact to our income statement associated with our retained economic investment in the Sequoia Choice securitization entities is presented in Note 5. Residential Loan Characteristics The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2017 and December 31, 2016. Table 6.2 – Geographic Concentration of Residential Loans December 31, 2017 Geographic Concentration Held-for-Sale Held-for- Held-for- Investment at Sequoia Choice Held-for- California 35 % 18 % 39 % 45 % Washington 9 % 2 % 7 % 5 % Texas 7 % 5 % 10 % 9 % Florida 4 % 13 % 4 % 5 % Georgia 2 % 5 % 3 % 1 % New York 2 % 9 % 3 % 4 % Other states (none greater than 5%) 41 % 48 % 34 % 31 % Total 100 % 100 % 100 % 100 % December 31, 2016 Geographic Concentration Held-for-Sale Held-for- Held-for- Held-for- California 40 % 18 % — % 42 % Texas 9 % 6 % — % 10 % Washington 8 % 2 % — % 4 % Florida 3 % 14 % — % 5 % Georgia 2 % 5 % — % 1 % New York 2 % 8 % — % 4 % Other states (none greater than 5%) 36 % 47 % — % 34 % Total 100 % 100 % — % 100 % T he following table displays the loan product type and accompanying loan characteristics of residential loans recorded on our consolidated balance sheets at December 31, 2017 and December 31, 2016. Table 6.3 – Product Types and Characteristics of Residential Loans December 31, 2017 (In Thousands) Loan Balance Number of Loans Interest Rate (1) Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Held-for-Investment at Redwood: Hybrid ARM loans $ — to $250 7 3.50 % to 3.88% 2043-08 - 2044-01 $ 1,589 $ 438 $ — $ 251 to $500 43 2.63 % to 4.88% 2043-07 - 2047-10 16,703 566 — $ 501 to $750 87 2.88 % to 5.13% 2040-09 - 2047-11 55,709 1,226 — $ 751 to $1,000 82 2.88 % to 6.00% 2043-12 - 2047-11 71,819 984 — over $1,000 40 3.00 % to 5.00% 2040-10 - 2047-11 57,641 — — 259 203,461 3,214 — Fixed loans $ — to $250 34 3.13 % to 5.08% 2022-10 - 2046-02 6,758 — — $ 251 to $500 681 2.80 % to 6.13% 2028-02 - 2047-12 296,950 1,380 — $ 501 to $750 1,261 2.75 % to 6.75% 2027-09 - 2047-12 777,103 3,818 — $ 751 to $1,000 649 2.75 % to 5.00% 2027-07 - 2047-12 559,426 2,566 — over $1,000 408 2.80 % to 5.00% 2030-11 - 2048-01 564,295 — — 3,033 2,204,532 7,764 — Total HFI at Redwood: 3,292 $ 2,407,993 $ 10,978 $ — Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 2,324 1.25 % to 5.16% 2019-02 - 2035-11 $ 253,438 $ 7,436 $ 7,284 $ 251 to $500 541 1.00 % to 5.63% 2021-03 - 2036-05 189,360 9,082 9,178 $ 501 to $750 151 1.63 % to 4.00% 2024-05 - 2035-09 91,244 1,995 2,589 $ 751 to $1,000 76 1.38 % to 3.38% 2022-01 - 2035-07 65,276 1,790 1,725 over $1,000 53 1.00 % to 4.63% 2027-03 - 2036-05 83,393 — 4,040 3,145 682,711 20,303 24,816 Hybrid ARM loans: $ — to $250 4 3.25 % to 3.75% 2033-08 - 2034-06 530 — — $ 251 to $500 17 2.63 % to 3.75% 2033-07 - 2034-12 6,170 — — $ 501 to $750 11 3.38 % to 3.75% 2033-07 - 2034-11 7,091 — 641 over $1,000 1 3.75 % to 3.75% 2033-09 - 2033-09 1,420 — — 33 15,211 — 641 Total HFI at Legacy Sequoia: 3,178 $ 697,922 $ 20,303 $ 25,457 Held-for-Investment at Sequoia Choice: Fixed loans: $ 0 to $250 4 2.75 % to 4.75% 2043-05 - 2047-07 $ 641 $ — $ — $ 251 to $500 85 3.13 % to 5.75% 2042-11 - 2047-10 38,900 486 — $ 501 to $750 388 3.13 % to 6.25% 2037-02 - 2047-11 240,538 672 — $ 751 to $1,000 239 3.25 % to 6.50% 2043-05 - 2047-10 210,235 — — over $1,000 90 3.13 % to 5.88% 2045-01 - 2047-10 114,433 — — Total HFI at Sequoia Choice: 806 $ 604,747 $ 1,158 $ — Held-for-Sale: ARM loans $ 58 to $290 3 1.50 % to 3.00% 2032-11 - 2033-10 $ 444 $ — $ — Hybrid ARM loans $ 443 to $2,000 93 2.88 % to 4.00% 2044-08 - 2048-01 78,884 — — Fixed loans $ 132 to $1,950 1,917 2.88 % to 6.25% 2029-05 - 2048-01 1,329,851 1,913 459 Total Held-for-Sale 2,013 $ 1,409,179 $ 1,913 $ 459 December 31, 2016 (In Thousands) Loan Balance Number of Loans Interest Rate (1) Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Held-for-Investment at Redwood: Hybrid ARM loans $ 251 to $500 1 3.63 % to 3.63% 2044-07 - 2044-07 $ 264 $ — $ — $ 501 to $750 4 2.88 % to 4.65% 2040-09 - 2045-10 2,722 — — $ 751 to $1,000 2 3.50 % to 4.00% 2045-09 - 2045-10 1,726 — — over $1,000 4 3.00 % to 4.20% 2040-10 - 2045-10 5,545 — — 11 10,257 — — Fixed loans $ — to $250 26 3.67 % to 5.08% 2039-04 - 2045-10 4,643 — 237 $ 251 to $500 633 2.80 % to 5.13% 2028-02 - 2046-12 278,560 264 — $ 501 to $750 1,306 2.75 % to 6.25% 2027-09 - 2046-12 807,714 2,803 — $ 751 to $1,000 690 2.75 % to 5.63% 2027-07 - 2046-12 597,002 — — over $1,000 402 2.80 % to 5.00% 2027-04 - 2047-01 535,621 1,232 — 3,057 2,223,540 4,299 237 Total HFI at Redwood: 3,068 $ 2,233,797 $ 4,299 $ 237 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 2,623 0.63 % to 5.60% 2019-02 - 2035-11 $ 297,646 $ 9,158 $ 7,410 $ 251 to $500 694 0.25 % to 5.75% 2019-12 - 2036-05 241,253 9,177 10,059 $ 501 to $750 203 0.88 % to 3.89% 2024-05 - 2035-09 121,919 5,812 5,069 $ 751 to $1,000 100 0.63 % to 3.00% 2022-01 - 2035-07 86,988 2,750 3,322 over $1,000 78 0.25 % to 3.75% 2027-03 - 2036-05 121,484 4,790 4,306 3,698 869,290 31,687 30,166 Hybrid ARM loans: $ — to $250 4 3.00 % to 3.00% 2033-09 - 2034-06 453 — — $ 251 to $500 18 2.63 % to 3.13% 2033-07 - 2034-12 6,516 — — $ 501 to $750 13 2.75 % to 3.13% 2033-07 - 2034-12 8,483 669 — $ 751 to $1,000 1 3.13 % to 3.13% 2033-08 - 2033-08 751 — — over $1,000 1 3.00 % to 3.00% 2033-09 - 2033-09 1,488 — — 37 17,691 669 — Total HFI at Legacy Sequoia: 3,735 $ 886,981 $ 32,356 $ 30,166 Held-for-Sale: ARM loans $ 61 to $396 6 1.88 % to 2.75% 2033-10 - 2032-11 $ 882 $ — $ 300 Hybrid ARM loans $ 2 to $1,947 173 2.50 % to 6.00% 2037-06 - 2047-01 144,174 — — Fixed loans $ 404 to $1,997 942 2.99 % to 6.25% 2026-12 - 2047-01 688,329 — — Total Held-for-Sale 1,121 $ 833,385 $ — $ 300 (1) Rate is net of servicing fee for consolidated loans for which we do not own the MSR.

Real Estate Securities

Real Estate Securities	12 Months Ended
	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Real Estate Securities	Real Estate Securities We invest in real estate securities that we acquire from third parties or create and retain from our Sequoia securitizations. The following table presents the fair values of our real estate securities by type at December 31, 2017 and December 31, 2016 . Table 7.1 – Fair Values of Real Estate Securities by Type (In Thousands) December 31, 2017 December 31, 2016 Trading $ 968,844 $ 445,687 Available-for-sale 507,666 572,752 Total Real Estate Securities $ 1,476,510 $ 1,018,439 Our real estate securities include mortgage backed securities, 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. We further separate our subordinate securities into mezzanine and subordinate, where mezzanine includes securities initially rated AA through BBB- and issued in 2012 or later. Nearly all of our residential securities are supported by collateral that was designated as prime at the time of issuance. Trading Securities The following table presents the fair value of trading securities by position and collateral type at December 31, 2017 and December 31, 2016 . Table 7.2 – Trading Securities by Position and Collateral Type (In Thousands) December 31, 2017 December 31, 2016 Senior Securities $ 69,975 $ 37,067 Subordinate Securities Mezzanine 563,474 256,226 Subordinate 335,395 152,394 Total Subordinate Securities 898,869 408,620 Total Trading Securities $ 968,844 $ 445,687 We elected the fair value option for certain securities and classify them as trading securities. Our trading securities include both residential and commercial/multifamily securities. At December 31, 2017 , trading securities with a carrying value of $593 million were pledged as collateral under short-term borrowing agreements. See Note 11 for additional information on short-term debt. At December 31, 2017 and 2016 , our senior trading securities were comprised of interest-only securities, for which there is no principal balance, and our subordinate trading securities had an unpaid principal balance of $943 million and $434 million , respectively. At December 31, 2017 and 2016, subordinate trading securities included $301 million and $152 million , respectively, of Agency residential mortgage credit risk transfer (or "CRT") securities, $68 million and $15 million , respectively, of Sequoia securities, $206 million and $149 million , respectively, of other third party residential securities, and $324 million and $92 million , respectively, of third-party commercial/multifamily securities. During the year s ended December 31, 2017 and 2016 , we acquired $661 million and $307 million (principal balance), respectively, of securities for which we elected the fair value option and classified as trading, and sold $132 million and $241 million , respectively, of such securities. During the year s ended December 31, 2017 and 2016 , we recorded net market valuation gain s of $40 million and $11 million , respectively, on trading securities, included in Investment fair value changes, net and Mortgage banking activities, net on our consolidated statements of income. AFS Securities The following table presents the fair value of our available-for-sale securities by position and collateral type at December 31, 2017 and December 31, 2016 . Table 7.3 – Available-for-Sale Securities by Position and Collateral Type (In Thousands) December 31, 2017 December 31, 2016 Senior Securities $ 140,989 $ 136,546 Re-REMIC Securities 38,875 85,479 Subordinate Securities Mezzanine 92,002 163,715 Subordinate 235,800 187,012 Total Subordinate Securities 327,802 350,727 Total AFS Securities $ 507,666 $ 572,752 At December 31, 2017 and December 31, 2016 , all of our available-for-sale securities were comprised of residential mortgage backed securities. At December 31, 2017 , AFS securities with a carrying value of $195 million were pledged as collateral under short-term borrowing agreements. See Note 11 for additional information on short-term debt. During the years ended December 31, 2017 and 2016 , we purchased $40 million and $35 million of AFS securities, respectively, and sold $90 million and $253 million of AFS securities, respectively, which resulted in net realized gains of $14 million and $21 million , respectively. In addition, during 2017 we exchanged our interests in three Re-REMICs, which together had a fair value of $47 million , for the senior securities underlying the Re-REMICs, and reclassified our interests from Re-REMIC to Senior. We often purchase AFS securities at a discount to their outstanding principal balances. To the extent we purchase an AFS security that has a likelihood of incurring a loss, we do not amortize into income the portion of the purchase discount that we do not expect to collect due to the inherent credit risk of the security. We may also expense a portion of our investment in the security to the extent we believe that principal losses will exceed the purchase discount. We designate any amount of unpaid principal balance that we do not expect to receive, and thus do not expect to earn or recover, as a credit reserve on the security. Any remaining net unamortized discounts or premiums on the security are amortized into income over time using the effective yield method. At December 31, 2017 , there were $0.1 million of AFS securities with contractual maturities less than five years , $5 million with contractual maturities greater than five years but less than 10 years , and the remainder of our AFS securities had contractual maturities greater than 10 years . The following table presents the components of carrying value (which equals fair value) of AFS securities at December 31, 2017 and December 31, 2016 . Table 7.4 – Carrying Value of AFS Securities December 31, 2017 (In Thousands) Senior Re-REMIC Subordinate Total Principal balance $ 144,512 $ 44,613 $ 419,020 $ 608,145 Credit reserve (2,936 ) (5,820 ) (37,793 ) (46,549 ) Unamortized discount, net (34,379 ) (9,662 ) (139,712 ) (183,753 ) Amortized cost 107,197 29,131 241,515 377,843 Gross unrealized gains 35,027 9,744 86,419 131,190 Gross unrealized losses (1,235 ) — (132 ) (1,367 ) Carrying Value $ 140,989 $ 38,875 $ 327,802 $ 507,666 December 31, 2016 (In Thousands) Senior Re-REMIC Subordinate Total Principal balance $ 148,862 $ 95,608 $ 456,359 $ 700,829 Credit reserve (4,814 ) (6,857 ) (35,802 ) (47,473 ) Unamortized discount, net (41,877 ) (19,613 ) (136,622 ) (198,112 ) Amortized cost 102,171 69,138 283,935 455,244 Gross unrealized gains 36,304 16,341 68,032 120,677 Gross unrealized losses (1,929 ) — (1,240 ) (3,169 ) Carrying Value $ 136,546 $ 85,479 $ 350,727 $ 572,752 The following table presents the changes for the years ended December 31, 2017 and 2016 , in unamortized discount and designated credit reserves on residential AFS securities. Table 7.5 – Changes in Unamortized Discount and Designated Credit Reserves on AFS Securities Year Ended December 31, 2017 Year Ended December 31, 2016 Credit Unamortized Credit Unamortized (In Thousands) Beginning balance $ 47,473 $ 198,112 $ 48,869 $ 237,107 Amortization of net discount — (18,795 ) — (26,253 ) Realized credit losses (4,187 ) — (5,830 ) — Acquisitions 9,118 13,080 9,311 11,461 Sales, calls, other (3,404 ) (12,106 ) (4,968 ) (24,480 ) Impairments 1,011 — 368 — Transfers to (release of) credit reserves, net (3,462 ) 3,462 (277 ) 277 Ending Balance $ 46,549 $ 183,753 $ 47,473 $ 198,112 AFS Securities with Unrealized Losses The following table presents the components comprising the total carrying value of residential AFS securities that were in a gross unrealized loss position at December 31, 2017 and December 31, 2016 . Table 7.6 – 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 Amortized Cost Unrealized Losses Fair (In Thousands) December 31, 2017 $ 8,637 $ (132 ) $ 8,505 $ 28,557 $ (1,235 ) $ 27,322 December 31, 2016 15,772 (330 ) 15,442 60,035 (2,839 ) 57,196 At December 31, 2017 , after giving effect to purchases, sales, and extinguishment due to credit losses, our consolidated balance sheet included 167 AFS securities, of which nine were in an unrealized loss position and three were in a continuous unrealized loss position for 12 consecutive months or longer. At December 31, 2016 , our consolidated balance sheet included 186 AFS securities, of which 19 were in an unrealized loss position and 10 were in a continuous unrealized loss position for 12 consecutive months or longer. Evaluating AFS Securities for Other-than-Temporary Impairments Gross unrealized losses on our AFS securities were $1 million at December 31, 2017 . We evaluate all securities in an unrealized loss position to determine if the impairment is temporary or other-than-temporary (resulting in an OTTI). At December 31, 2017 , 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. For the year ended December 31, 2017 , other-than-temporary impairments related to our AFS securities were $1 million , of which $1 million were recognized through our consolidated statements of income and $0.4 million were recognized in Accumulated other comprehensive income, a component of our consolidated balance sheet. AFS securities for which OTTI is recognized have experienced, or are expected to experience, credit-related adverse cash flow changes. In determining our estimate of cash flows for AFS securities we may consider factors such as structural credit enhancement, past and expected future performance of underlying mortgage loans, including timing of expected future cash flows, which are informed by prepayment rates, default rates, loss severities, delinquency rates, percentage of non-performing loans, FICO scores at loan origination, year of origination, loan-to-value ratios, and geographic concentrations, as well as general market assessments. Changes in our evaluation of these factors impacted the cash flows expected to be collected at the OTTI assessment date and were used to determine if there were credit-related adverse cash flows and if so, the amount of credit related losses. Significant judgment is used in both our analysis of the expected cash flows for our AFS securities and any determination of the credit loss component of OTTI. The table below summarizes the significant valuation assumptions we used for our AFS securities in unrealized loss positions at December 31, 2017 . Table 7.7 – Significant Valuation Assumptions December 31, 2017 Range for Securities Prepayment rates 8 % - 20% Projected losses 0.22 % - 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 December 31, 2017 , 2016 , and 2015 for which a portion of an OTTI was recognized in other comprehensive income. Table 7.8 – Activity of the Credit Component of Other-than-Temporary Impairments Years Ended December 31, (In Thousands) 2017 2016 2015 Balance at beginning of period $ 28,261 $ 28,277 $ 33,849 Additions Initial credit impairments 178 346 246 Subsequent credit impairments 47 8 — Reductions Securities sold, or expected to sell (4,898 ) (261 ) (4,567 ) Securities with no outstanding principal at period end (2,551 ) (109 ) (1,251 ) Balance at End of Period $ 21,037 $ 28,261 $ 28,277 Gains and losses from the sale of AFS securities are recorded as Realized gains, net, in our consolidated statements of income. The following table presents the gross realized gains and losses on sales and calls of AFS securities for the year s ended December 31, 2017 , 2016 , and 2015 . Table 7.9 – Gross Realized Gains and Losses on AFS Securities Years Ended December 31, (In Thousands) 2017 2016 2015 Gross realized gains - sales $ 13,927 $ 23,598 $ 34,922 Gross realized gains - calls 677 1,210 2,167 Gross realized losses - sales — (2,293 ) (608 ) Gross realized losses - calls (497 ) — (112 ) Total Realized Gains on Sales and Calls of AFS Securities, net $ 14,107 $ 22,515 $ 36,369

Mortgage Servicing Rights

Mortgage Servicing Rights	12 Months Ended
	Dec. 31, 2017
Transfers and Servicing [Abstract]
Mortgage Servicing Rights	Mortgage Servicing Rights We invest in mortgage servicing rights associated with residential mortgage loans and contract with licensed sub-servicers to perform all servicing functions for these loans. The following table presents the fair value of MSRs and the aggregate principal amounts of associated loans as of December 31, 2017 and December 31, 2016 . Table 8.1 – Fair Value of MSRs and Aggregate Principal Amounts of Associated Loans December 31, 2017 December 31, 2016 (In Thousands) MSR Fair Value Associated Principal MSR Fair Value Associated Principal Mortgage Servicing Rights Conforming Loans $ 1,194 $ 107,416 $ 58,523 $ 4,989,720 Jumbo Loans 62,404 5,449,239 60,003 5,467,169 Total Mortgage Servicing Rights $ 63,598 $ 5,556,655 $ 118,526 $ 10,456,889 The following table presents activity for MSRs for the years ended December 31, 2017 , 2016 , and 2015 . Table 8.2 – Activity for MSRs Years Ended December 31, (In Thousands) 2017 2016 2015 Balance at beginning of period $ 118,526 $ 191,976 $ 139,293 Additions 8,026 25,362 95,281 Sales (52,788 ) (62,440 ) (18,206 ) Changes in fair value due to: Changes in assumptions (1) (1,088 ) (14,512 ) (5,453 ) Other changes (2) (9,078 ) (21,860 ) (18,939 ) Balance at End of Period $ 63,598 $ 118,526 $ 191,976 (1) Primarily reflects changes in prepayment assumptions due to changes in market interest rates. (2) Represents changes due to the 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 years ended December 31, 2017 and 2016 . Table 8.3 – MSR Additions Years Ended December 31, 2017 2016 (In Thousands) MSR Fair Value Associated Principal MSR Fair Value Associated Principal Jumbo MSR additions: From securitization $ 7,123 $ 654,605 $ 6,451 $ 939,861 From loan sales 263 31,658 177 26,844 Total jumbo MSR additions 7,386 686,263 6,628 966,705 Conforming MSR additions: From loan sales — — 3,380 316,290 From purchases 640 106,108 15,354 1,643,577 Total conforming MSR additions 640 106,108 18,734 1,959,867 Total MSR Additions $ 8,026 $ 792,371 $ 25,362 $ 2,926,572 The following table presents the components of our MSR income for the years ended December 31, 2017 , 2016 , and 2015 . Table 8.4 – Components of MSR Income (Loss), net Years Ended December 31, (In Thousands) 2017 2016 2015 Servicing income $ 21,120 $ 41,152 $ 38,964 Cost of sub-servicer (2,828 ) (6,281 ) (5,079 ) Net servicing fee income 18,292 34,871 33,885 Market valuation changes of MSRs (10,166 ) (36,372 ) (24,392 ) Market valuation changes of associated derivatives (1) (568 ) 15,584 (12,708 ) MSR reversal of provision for repurchases 302 270 (707 ) MSR Income (Loss), Net $ 7,860 $ 14,353 $ (3,922 ) (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.

Derivative Financial Instrument

Derivative Financial Instruments	12 Months Ended
	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments The following table presents the fair value and notional amount of our derivative financial instruments at December 31, 2017 and December 31, 2016 . Table 9.1 – Fair Value and Notional Amount of Derivative Financial Instruments December 31, 2017 December 31, 2016 Fair Value Notional Amount Fair Value Notional Amount (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 10,122 $ 1,765,000 $ 19,859 $ 1,009,000 TBAs 133 295,000 8,300 850,000 Futures 1 7,500 — — Swaptions 42 200,000 5,121 345,000 Assets - Other Derivatives Loan purchase commitments 3,243 547,434 3,315 352,981 Loan forward sale commitments 2,177 343,681 — — Total Assets $ 15,718 $ 3,158,615 $ 36,595 $ 2,556,981 Liabilities - Cash Flow Hedges Interest rate swaps $ (43,679 ) $ 139,500 $ (44,822 ) $ 139,500 Liabilities - Risk Management Derivatives Interest rate swaps (11,888 ) 1,248,000 (12,097 ) 1,101,500 TBAs (3,808 ) 1,400,000 (4,681 ) 510,000 Futures — — (928 ) 87,500 Liabilities - Other Derivatives Loan purchase commitments (3,706 ) 697,966 (3,801 ) 584,862 Total Liabilities $ (63,081 ) $ 3,485,466 $ (66,329 ) $ 2,423,362 Total Derivative Financial Instruments, Net $ (47,363 ) $ 6,644,081 $ (29,734 ) $ 4,980,343 Risk Management Derivatives To manage, to varying degrees, risks associated with certain assets and liabilities on our consolidated balance sheets, we may enter into derivative contracts. At December 31, 2017 , we were party to swaps and swaptions with an aggregate notional amount of $3.21 billion , TBA agreements sold with an aggregate notional amount of $1.70 billion , and financial futures contracts with an aggregate notional amount of $8 million . At December 31, 2016 , we were party to swaps and swaptions with an aggregate notional amount of $2.46 billion , TBA agreements sold with an aggregate notional amount of $1.36 billion , and financial futures contracts with an aggregate notional amount of $88 million . For the years ended December 31, 2017 , 2016 , and 2015 , risk management derivatives had a net market valuation loss of $31 million , a net market valuation gain of $10 million , and a net market valuation loss of $65 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 $38 million , $26 million , and $50 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively, and were 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 portions of 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 years ended December 31, 2017 , 2016 , and 2015 , changes in the values of designated cash flow hedges were positive $1 million , positive $3 million , and negative $1 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 $43 million and $44 million at December 31, 2017 and December 31, 2016 , respectively. The following table illustrates the impact on interest expense of our interest rate agreements accounted for as cash flow hedges for the years ended December 31, 2017 , 2016 , and 2015 . Table 9.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Years Ended December 31, (In Thousands) 2017 2016 2015 Net interest expense on cash flows hedges $ (4,602 ) $ (5,317 ) $ (5,883 ) Realized net losses reclassified from other comprehensive income (45 ) (72 ) (95 ) Total Interest Expense $ (4,647 ) $ (5,389 ) $ (5,978 ) Derivative Counterparty Credit Risk We incur credit risk to the extent that counterparties to our derivative financial instruments do not perform their obligations under specified contractual agreements. If a derivative counterparty does not perform, we may not receive the proceeds to which we may be entitled under these agreements. Each of our derivative counterparties that is not a clearinghouse must maintain compliance with International Swaps and Derivatives Association (“ISDA”) agreements or other similar agreements (or receive a waiver of non-compliance after a specific assessment) in order to conduct derivative transactions with us. Additionally, we review non-clearinghouse derivative counterparty credit standings, and in the case of a deterioration of creditworthiness, appropriate remedial action is taken. To further mitigate counterparty risk, we exit derivatives contracts with counterparties that (i) do not maintain compliance with (or obtain a waiver from) the terms of their ISDA or other agreements with us; or (ii) do not meet internally established guidelines regarding creditworthiness. Our ISDA and similar agreements currently require full bilateral collateralization of unrealized loss exposures with our derivative counterparties. Through a margin posting process, our positions are revalued with counterparties each business day and cash margin is generally transferred to either us or our derivative counterparties as collateral based upon the directional changes in fair value of the positions. We also attempt to transact with several different counterparties in order to reduce our specific counterparty exposure. With respect to certain of our derivatives, clearing and settlement is through one or more clearinghouses, which may be substituted as a counterparty. Clearing and settlement of derivative transactions through a clearinghouse is also intended to reduce specific counterparty exposure. We consider counterparty risk as part of our fair value assessments of all derivative financial instruments at each quarter-end. At December 31, 2017 , we assessed this risk as remote and did not record a specific valuation adjustment. At December 31, 2017 , we had outstanding derivative agreements with three counterparties (other than clearinghouses) and were in compliance with ISDA agreements governing our open derivative positions.

Other Assets and Liabilities

Other Assets and Liabilities	12 Months Ended
	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets and Liabilities	Other Assets and Liabilities Other assets at December 31, 2017 and December 31, 2016 , are summarized in the following table. Table 10.1 – Components of Other Assets (In Thousands) December 31, 2017 December 31, 2016 Margin receivable $ 85,044 $ 68,038 FHLBC stock 43,393 43,393 Pledged collateral 42,615 42,875 MSR holdback receivable 8,141 1,862 REO 3,354 5,533 Guarantee asset 2,869 4,092 Fixed assets and leasehold improvements (1) 2,645 2,750 Commercial loans — 2,700 Other 6,905 10,702 Total Other Assets $ 194,966 $ 181,945 (1) Fixed assets and leasehold improvements had a basis of $6 million and accumulated depreciation of $4 million at December 31, 2017 . Accrued expenses and other liabilities at December 31, 2017 and December 31, 2016 are summarized in the following table. Table 10.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) December 31, 2017 December 31, 2016 Accrued compensation $ 24,025 $ 18,830 Guarantee obligations 19,487 21,668 Deferred tax liabilities 11,764 898 Residential loan and MSR repurchase reserve 4,916 5,432 Legal reserve 2,000 2,000 Accrued operating expenses 1,481 4,493 Current accounts payable 1,339 1,151 Margin payable 390 12,783 Restructuring liabilities — 2,297 Other 2,327 2,876 Total Other Liabilities $ 67,729 $ 72,428 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. FHLB Stock In accordance with our FHLB-member subsidiary's borrowing agreement with the FHLBC, our subsidiary is required to purchase and hold stock in the FHLBC. See Note 3 and Note 13 for additional information on this borrowing agreement. 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. See Note 3 and Note 14 for additional information on our risk-sharing arrangements. MSR Holdback Receivable MSR holdback receivable represents amounts owed to us from third parties related to the sale of MSRs. REO The carrying value of REO at December 31, 2017 , was $3 million , which includes the net effect of $4 million related to transfers into REO during the year ended December 31, 2017 , offset by $10 million of REO liquidations and $3 million of unrealized gains resulting from market valuation adjustments. At December 31, 2017 and December 31, 2016 , there were 14 and 23 REO properties, respectively, recorded on our consolidated balance sheets, all of which were owned at consolidated Legacy Sequoia entities. Commercial Loans Prior to 2017, we originated and acquired commercial loans for our investment portfolio and for sale through our commercial mortgage banking activities. During 2016, we sold nearly all of our commercial loans as we wound down our commercial mortgage banking and commercial investment activities. In 2016, we recorded a reversal of provision for loan losses related to the sale of our commercial loan investments and recorded any net gains or losses from the sale of commercial loans in Mortgage banking activities, net and Investment fair value changes, net on our consolidated statements of income. At December 31, 2016, we held one commercial loan at the lower of cost or fair value with $3 million in outstanding principal balance, a carrying value of $3 million , and an estimated net fair value of $3 million . This loan prepaid in full during 2017. Legal and Repurchase Reserves See Note 14 for additional information on the legal and residential repurchase reserves. Restructuring Liabilities In January 2016, we announced plans to restructure certain aspects of our residential mortgage loan operations by ceasing 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 no longer originate commercial loans. These restructuring activities were substantially completed 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 for the year ended December 31, 2016, we recorded restructuring charges totaling $10 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. The remaining restructuring liability was settled in 2017 and no further adjustments were recorded. 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 21 — Segment Information .

Short-Term Debt

Short-Term Debt	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Short-Term Debt	Short-Term Debt We enter into repurchase agreements, bank warehouse agreements, and other forms of collateralized (and generally uncommitted) short-term borrowings with several banks and major investment banking firms. At December 31, 2017 , we had outstanding agreements with several counterparties and we were in compliance with all of the related covenants. For additional information about these financial covenants and our short-term debt, see Part II, Item 7 of this Annual Report on Form 10-K under the heading “ Risks Relating to Debt Incurred Under Short- and Long-Term Borrowing Facilities. ” The table below summarizes our short-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at December 31, 2017 and December 31, 2016 . Table 11.1 – Short-Term Debt December 31, 2017 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate Maturity Weighted Average Days Until Maturity Facilities Residential loan warehouse 4 $ 1,039,666 $ 1,575,000 3.17 % 1/2018-12/2018 197 Real estate securities repo 9 648,746 — 2.69 % 1/2018-3/2018 28 Total Short-Term Debt Facilities 13 1,688,412 Convertible notes, net N/A 250,270 — 4.63 % 4/2018 105 Total Short-Term Debt $ 1,938,682 December 31, 2016 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate Maturity Weighted Average Days Until Maturity Facilities Residential loan warehouse 4 $ 485,544 $ 1,325,000 2.40 % 1/2017-12/2017 206 Real estate securities repo 7 305,995 — 1.91 % 1/2017-3/2017 24 Total Short-Term Debt 11 $ 791,539 Borrowings under our facilities are generally charged interest based on a specified margin over the one-month LIBOR interest rate. At December 31, 2017 , 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 and real estate securities pledged as collateral was $1.15 billion and $788 million , respectively, at December 31, 2017 and $534 million and $363 million , respectively, at December 31, 2016 . For the years ended December 31, 2017 and 2016 , the average balances of our short-term debt facilities were $1.08 billion and $1.09 billion , respectively. At December 31, 2017 and December 31, 2016 , accrued interest payable on our short-term debt facilities was $2 million and $1 million , respectively. During the second quarter of 2017, $288 million principal amount of 4.625% convertible senior notes and $2 million of unamortized deferred issuance costs were reclassified from long-term debt to short-term debt, as the maturity of the notes was less than one year as of April 2017. Additionally, during the second quarter of 2017, we repurchased $37 million par value of these notes at a premium and recorded a loss on extinguishment of debt of $1 million in Realized gains, net on our consolidated statements of income. At December 31, 2017 , the accrued interest payable balance on this debt was $2 million . See Note 13 for additional information on our convertible notes. We also maintain a $10 million committed line of credit with a financial institution that is secured by certain mortgage-backed securities with a fair market value of $5 million at December 31, 2017 . At both December 31, 2017 and December 31, 2016 , we had no outstanding borrowings on this facility. Remaining Maturities of Short-Term Debt The following table presents the remaining maturities of our secured short-term debt by the type of collateral securing the debt as well as our convertible notes at December 31, 2017 . Table 11.2 – Short-Term Debt by Collateral Type and Remaining Maturities December 31, 2017 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for sale residential loans $ 150,095 $ 320,024 $ 569,547 $ 1,039,666 Real estate securities 517,847 130,899 — 648,746 Total Secured Short-Term Debt 667,942 450,923 569,547 1,688,412 Convertible notes, net — — 250,270 250,270 Total Short-Term Debt $ 667,942 $ 450,923 $ 819,817 $ 1,938,682

Asset-Backed Securities Issued

Asset-Backed Securities Issued	12 Months Ended
	Dec. 31, 2017
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. We consolidated the Legacy Sequoia securitizations entities, and beginning in September 2017, the Sequoia Choice securitization entities, that we determined were VIEs and for which we determined we were the primary beneficiary. Each consolidated 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, servicing administrator, or depositor of these entities or as a result of our having sold assets directly or indirectly to these entities. We account for the ABS issued under our consolidated Sequoia entities at fair value, with periodic changes in fair value recorded in Investment fair value changes, net on our consolidated statements of income. Pursuant to the CFE guidelines, the market valuation changes on our Sequoia loans are based on the estimated fair value of the associated ABS issued. The net impact to our income statement associated with our retained economic investment in the Sequoia securitization entities is presented in Note 5. The ABS issued by these entities consist of various classes of securities that pay interest on a monthly or quarterly basis. All ABS issued by the Sequoia Choice entities pay fixed rates of interest and substantially all ABS issued by the Legacy Sequoia entities pay variable rates of interest, which are indexed to one-, three-, or six-month LIBOR. Some ABS issued by the Legacy Sequoia entities 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 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 Sequoia securitization entities we sponsored at December 31, 2017 and December 31, 2016 , along with other selected information, are summarized in the following table. Table 12.1 – Asset-Backed Securities Issued December 31, 2017 December 31, 2016 (Dollars in Thousands) Legacy Sequoia Sequoia Choice Total Legacy Sequoia Sequoia Total Certificates with principal balance $ 691,125 $ 526,657 $ 1,217,782 $ 880,517 $ — $ 880,517 Interest-only certificates 1,972 7,695 9,667 3,774 — 3,774 Market valuation adjustments (70,652 ) 7,788 (62,864 ) (110,829 ) — (110,829 ) ABS Issued, Net $ 622,445 $ 542,140 $ 1,164,585 $ 773,462 $ — $ 773,462 Range of weighted average interest rates, by series 1.46% to 2.78% 4.52% to 4.73% 0.74% to 2.23% — % Stated maturities 2024 - 2036 2047 2024 - 2036 N/A Number of series 20 2 20 — The actual maturity of each class of ABS issued is primarily determined by the rate of principal prepayments on the assets of the issuing entity. Each series is also subject to redemption prior to the stated maturity according to the terms of the respective governing documents of each ABS issuing entity. As a result, the actual maturity of ABS issued may occur earlier than its stated maturity. At December 31, 2017 , all of the ABS issued and outstanding had contractual maturities beyond five years . At both December 31, 2017 and December 31, 2016 , accrued interest payable on ABS issued by the Legacy Sequoia entities was $1 million . At December 31, 2017 , accrued interest payable on ABS issued by the Sequoia Choice entities was $2 million . Interest due on consolidated ABS issued is payable monthly. The following table summarizes the carrying value components of the collateral for ABS issued and outstanding at December 31, 2017 and December 31, 2016 . Table 12.2 – Collateral for Asset-Backed Securities Issued December 31, 2017 December 31, 2016 (In Thousands) Legacy Sequoia Sequoia Choice Total Legacy Sequoia Sequoia Total Residential loans $ 632,817 $ 620,062 $ 1,252,879 $ 791,636 $ — $ 791,636 Restricted cash 147 4 151 148 — 148 Accrued interest receivable 867 2,524 3,391 1,000 — 1,000 REO 3,353 — 3,353 5,533 — 5,533 Total Collateral for ABS Issued $ 637,184 $ 622,590 $ 1,259,774 $ 798,317 $ — $ 798,317

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2017
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 December 31, 2017 , 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 year ended December 31, 2016, we borrowed an additional $519 million under this agreement, which increased our total borrowings to $2.00 billion . 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 its 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 December 31, 2017 , $2.00 billion of advances were outstanding under this agreement, which were classified as long-term debt, with a weighted average interest rate of 1.38% and a weighted average maturity of approximately eight years . At December 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 0.64% 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 $2.43 billion at December 31, 2017 . This agreement also requires our subsidiary to purchase and hold stock in the FHLBC in an amount equal to a specified percentage of outstanding advances. At December 31, 2017 , our subsidiary held $43 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 December 31, 2017 . Table 13.1 – Maturities of FHLBC Borrowings by Year (In Thousands) December 31, 2017 2024 $ 470,171 2025 887,639 2026 642,189 Total FHLBC Borrowings $ 1,999,999 For additional information about our FHLBC borrowings, see Part II, Item 7 of this Annual Report on Form 10-K under the heading “ Risks Relating to Debt Incurred under Short- and Long-Term Borrowing Facilities. ” Convertible Notes In August 2017, we issued $245 million principal amount of 4.75% convertible senior notes due 2023 . These convertible notes require semi-annual interest payments at a fixed coupon rate of 4.75% until maturity or conversion, which will be no later than August 15, 2023 . After deducting the underwriting discount and offering costs, we received $238 million of net proceeds. Including amortization of deferred debt issuance costs, the weighted average interest expense yield on these convertible notes is approximately 5.3% per annum. At December 31, 2017 , these notes were convertible at the option of the holder at a conversion rate of 53.8394 common shares per $1,000 principal amount of convertible senior notes (equivalent to a conversion price of $18.57 per common share). Upon conversion of these notes by a holder, the holder will receive shares of our common stock. At December 31, 2017 , the outstanding principal amount of these notes was $245 million . At December 31, 2017 , the accrued interest payable balance on this debt was $4 million and the unamortized deferred issuance costs were $7 million . 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 debt issuance costs, the weighted average interest expense yield on these exchangeable notes is approximately 6.3% per annum. At December 31, 2017 , 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 year ended December 31, 2017 , we did no t repurchase any of these notes. During the year ended December 31, 2016, we repurchased $4 million par value of these notes at a discount and recorded a gain on extinguishment of debt of $0.3 million in Realized gains, net on our consolidated statements of income. At December 31, 2017 , the outstanding principal amount of these notes was $201 million . At December 31, 2017 , the accrued interest payable balance on this debt was $1 million and the unamortized deferred issuance costs were $2 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 debt issuance costs, the weighted average interest expense yield on these convertible notes is approximately 4.8% per annum. At December 31, 2017 , 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. During the second quarter of 2017, $288 million principal amount of these convertible notes and $2 million of unamortized deferred issuance costs were reclassified from long-term debt to short-term debt, as the maturity of the notes was less than one year as of April 2017. Additionally, during the year ended December 31, 2017, we repurchased $37 million par value of these notes at a premium and recorded a loss on extinguishment of debt of $1 million in Realized gains, net on our consolidated statements of income. At December 31, 2017 , the outstanding principal amount of these notes was $250 million . At December 31, 2017 , the accrued interest payable balance on this debt was $2 million and the unamortized deferred issuance costs were $0.2 million . Trust Preferred Securities and Subordinated Notes At December 31, 2017 , we had trust preferred securities and subordinated notes outstanding of $100 million and $40 million , respectively. This debt requires quarterly interest payments at a floating rate equal to three-month LIBOR plus 2.25% until the notes are redeemed. The $100 million trust preferred securities will be redeemed no later than January 30, 2037, and the $40 million subordinated notes will be redeemed no later than July 30, 2037. Prior to 2014, we entered into interest rate swaps with aggregate notional values totaling $140 million to hedge the variability in this long-term debt interest expense. Including hedging costs and amortization of deferred debt issuance costs, the weighted average interest expense yield on our trust preferred securities and subordinated notes is approximately 6.9% per annum. At both December 31, 2017 and December 31, 2016 , 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	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Commitments At December 31, 2017 , we were obligated under four non-cancelable operating leases with expiration dates through 2028 for $18 million of cumulative lease payments. Our operating lease expense was $2 million for the year ended December 31, 2017 , and $3 million for each of the years ended December 31, 2016 and 2015 , respectively. The following table presents our future lease commitments at December 31, 2017 . Table 14.1 – Future Lease Commitments by Year (In Thousands) December 31, 2017 2018 $ 1,948 2019 1,987 2020 1,965 2021 and thereafter 11,691 Total Lease Commitments $ 17,591 Leasehold improvements for our offices are amortized into expense over the lease term. There were $0.1 million of unamortized leasehold improvements at December 31, 2017 . For each of the years ended December 31, 2017 , 2016 , and 2015 , we recognized less than $0.1 million of leasehold amortization expense. Loss Contingencies — Risk-Sharing At December 31, 2017 , 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 December 31, 2017 , 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 December 31, 2017 , we had incurred losses of less than $0.1 million under these arrangements. For the years ended December 31, 2017 , 2016, and 2015, other income related to these arrangements was $3 million , $5 million , and $3 million , respectively, and was included in Other income on our consolidated statements of income. For the years ended December 31, 2017 , 2016, and 2015, we recorded net market valuation losses related to these arrangements of $1 million , $1 million , and $2 million , respectively, through Investment fair value changes, net, on our consolidated statements of income. All of the loans in the reference pools subject to these risk-sharing arrangements were originated in 2014 and 2015, and at December 31, 2017 , the loans had an unpaid principal balance of $2.10 billion and a weighted average FICO score of 758 (at origination) and LTV of 77% (at origination). At December 31, 2017 , $8 million of the loans were 90 days or more delinquent, of which $1 million were in foreclosure. At December 31, 2017 , the carrying value of our guarantee obligation was $19 million and included $10 million designated as a non-amortizing credit reserve, which we believe is sufficient to cover current expected losses under these obligations. 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 December 31, 2017 and December 31, 2016, assets of such SPEs totaled $48 million and $49 million , respectively, and liabilities of such SPEs totaled $19 million and $22 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 both December 31, 2017 and December 31, 2016 , our repurchase reserve associated with our residential loans and MSRs was $5 million and was recorded in Accrued expenses and other liabilities on our consolidated balance sheets. We received 17 repurchase requests during the year ended December 31, 2017 and 59 during the year ended December 31, 2016 . During the years ended December 31, 2017 , 2016 , and 2015 , we repurchased one loan, one loan, and zero loans, respectively. During the years ended December 31, 2017 and 2016, we recorded $0.3 million and $1 million of reversals of repurchase provisions, respectively, that were recorded in Mortgage banking activities, net and MSR income (loss), net on our consolidated statements of income and had charge-offs of $0.2 million and $0.1 million , respectively. During the year ended December 31, 2015 we recorded a repurchase provision of $3 million that was recorded in Mortgage banking activities, net and MSR income (loss), net on our consolidated statements of income, and had no charge-offs. 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”), which alleged 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 alleged that the alleged misstatements concerned 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 alleged claims under the Securities Act of Washington (Section 21.20.005, et seq.) and sought 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, at December 31, 2017 , approximately $125 million of principal and $11 million of interest payments had been made in respect of the Seattle Certificate. The matter was subsequently resolved and the claims were dismissed by the FHLB Seattle as to all the FHLB Seattle Defendants. At the time the Seattle Certificate was issued, Redwood agreed to indemnify the underwriters of the 2005-4 RMBS, which underwriters were named 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 resolution 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”), which alleged 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 claimed 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 alleged that the misstatements for the 2005-4 RMBS concerned 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. The Schwab Certificate was issued with an original principal amount of approximately $15 million , and, at December 31, 2017 , approximately $14 million of principal and $1 million of interest payments had been made in respect of 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. Subsequently, the matter was resolved and Schwab dismissed its claims against the lead underwriter of the 2005-4 RMBS. At the time the Schwab Certificate was issued, Redwood agreed to indemnify the underwriters of the 2005-4 RMBS, which underwriters were also named 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 resolution of this litigation, Redwood could incur a loss as a result of these indemnities. Through certain of our wholly-owned subsidiaries, we have in the past engaged in, and expect to continue to engage in, activities relating to the acquisition and securitization of residential mortgage loans. In addition, certain of our wholly-owned subsidiaries have in the past engaged in activities relating to the acquisition and securitization of debt obligations and other assets through the issuance of collateralized debt obligations (commonly referred to as CDO transactions). Because of this involvement in the securitization and CDO businesses, we could become the subject of litigation relating to these businesses, including additional litigation of the type described above, and we could also become the subject of governmental investigations, enforcement actions, or lawsuits, and governmental authorities could allege that we violated applicable law or regulation in the conduct of our business. As an example, in July 2016 we became aware of a complaint filed by the State of California on April 1, 2016 against Morgan Stanley & Co. and certain of its affiliates alleging, among other things, that there were misleading statements contained in offering materials for 28 different mortgage pass-through certificates purchased by various California investors, including various California public pension systems, from Morgan Stanley and alleging that Morgan Stanley made false or fraudulent claims in connection with the sale of those certificates. Of the 28 mortgage pass-through certificates that were the subject of the complaint, two were Sequoia mortgage pass-through certificates issued in 2004 and two were Sequoia mortgage pass-through certificates issued in 2007. With respect to each of those certificates, our wholly-owned subsidiary, RWT Holdings, Inc., was the sponsor and our wholly-owned subsidiary, Sequoia Residential Funding, Inc., was the depositor. The plaintiffs subsequently withdrew from the litigation their claims based on eight of the 28 mortgage pass-through certificates, including one of the Sequoia mortgage pass-through certificates issued in 2004. At the time these Sequoia mortgage pass-through certificates were issued, Sequoia Residential Funding, Inc. and Redwood Trust agreed to indemnify the underwriters of these certificates for certain losses and expenses they might incur as a result of claims made against them relating to these certificates, including, without limitation, certain legal expenses. Regardless of the outcome of this litigation, we could incur a loss as a result of these indemnities. In accordance with GAAP, we review the need for any loss contingency reserves and establish reserves when, in the opinion of management, it is probable that a matter would result in a liability and the amount of loss, if any, can be reasonably estimated. Additionally, we record receivables for insurance recoveries relating to litigation-related losses and expenses if and when such amounts are covered by insurance and recovery of such losses or expenses are due. At December 31, 2017 , 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 or co-defendants. Settlement communications we have engaged in relating to certain of the above-referenced litigation matters are one of the factors that have resulted in our determination to establish the loss contingency reserves described above. We cannot be certain that any of these matters will be resolved through a settlement prior to trial and we cannot be certain that the resolution of these matters, whether through trial or settlement, will not have a material adverse effect on our financial condition or results of operations in any future period. Future developments (including resolution of substantive pre-trial motions relating to these matters, receipt of additional information and documents relating to these matters (such as through pre-trial discovery), new or additional settlement communications with plaintiffs relating to these matters, or resolutions of similar claims against other defendants in these matters) could result in our concluding in the future to establish additional loss contingency reserves or to disclose an estimate of reasonably possible losses in excess of our established reserves with respect to these matters. Our actual losses with respect to the above-referenced litigation matters may be materially higher than the aggregate amount of loss contingency reserves we have established in respect of these litigation matters, including in the event that any of these matters proceeds to trial and the plaintiff prevails. Other factors that could result in our concluding to establish additional loss contingency reserves or estimate additional reasonably possible losses, or could result in our actual losses with respect to the above-referenced litigation matters being materially higher than the aggregate amount of loss contingency reserves we have established in respect of these litigation matters include that: there are significant factual and legal issues to be resolved; information obtained or rulings made during the lawsuits could affect the methodology for calculation of the available remedies; and we may have additional obligations pursuant to indemnity agreements, representations and warranties, and other contractual provisions with other parties relating to these litigation matters that could increase our potential losses.

Equity

Equity	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Equity	Equity The following table provides a summary of changes to accumulated other comprehensive income by component for the years ended December 31, 2017 and 2016 . Table 15.1 – Changes in Accumulated Other Comprehensive Income by Component Years Ended December 31, 2017 2016 (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 $ 115,873 $ (44,020 ) $ 139,356 $ (47,363 ) Other comprehensive income (loss) (1) 22,864 1,022 (2,316 ) 3,271 Amounts reclassified from other (10,536 ) 45 (21,167 ) 72 Net current-period other comprehensive income (loss) 12,328 1,067 (23,483 ) 3,343 Balance at End of Period $ 128,201 $ (42,953 ) $ 115,873 $ (44,020 ) (1) Amounts presented for net unrealized gains (losses) on available-for-sale securities are net of tax benefit (provision) of zero and $1 million for the years ended December 31, 2017 and 2016 , respectively. The following table provides a summary of reclassifications out of accumulated other comprehensive income for the years ended December 31, 2017 and 2016 . Table 15.2 – Reclassifications Out of Accumulated Other Comprehensive Income Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Years Ended December 31, (In Thousands) Income Statement 2017 2016 Net Realized (Gain) Loss on AFS Securities Other than temporary impairment (1) Investment fair value changes, net $ 1,012 $ 368 Gain on sale of AFS securities Realized gains, net (11,548 ) (21,535 ) $ (10,536 ) $ (21,167 ) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 45 $ 72 $ 45 $ 72 (1) For the year ended December 31, 2017 , other-than-temporary impairments were $1 million , of which $1 million were recognized through our consolidated statements of income and $0.4 million were recognized in Accumulated other comprehensive income, a component of our consolidated balance sheet. For the year ended December 31, 2016 , other-than-temporary impairments were $3 million , of which $0.4 million were recognized through our consolidated statements of income, and $3 million were recognized in Accumulated other comprehensive income, a component of our consolidated balance sheet. Earnings per Common Share The following table provides the basic and diluted earnings per common share computations for the years ended December 31, 2017 , 2016 , and 2015 . Table 15.3 – Basic and Diluted Earnings per Common Share Years Ended December 31, (In Thousands, except Share Data) 2017 2016 2015 Basic Earnings per Common Share: Net income attributable to Redwood $ 140,406 $ 131,252 $ 102,088 Less: Dividends and undistributed earnings allocated to participating securities (3,632 ) (3,742 ) (2,806 ) Net income allocated to common shareholders $ 136,774 $ 127,510 $ 99,282 Basic weighted average common shares outstanding 76,792,957 76,747,047 82,945,103 Basic Earnings per Common Share $ 1.78 $ 1.66 $ 1.20 Diluted Earnings per Common Share: Net income attributable to Redwood $ 140,406 $ 131,252 $ 102,088 Less: Dividends and undistributed earnings allocated to participating securities (3,836 ) (4,035 ) (2,677 ) Add back: Interest expense on convertible notes for the period, net of tax 26,898 23,862 — Net income allocated to common shareholders $ 163,468 $ 151,079 $ 99,411 Weighted average common shares outstanding 76,792,957 76,747,047 82,945,103 Net effect of dilutive equity awards 185,383 28,435 1,573,292 Net effect of assumed convertible notes conversion to common shares 24,996,668 21,133,608 — Diluted weighted average common shares outstanding 101,975,008 97,909,090 84,518,395 Diluted Earnings per Common Share $ 1.60 $ 1.54 $ 1.18 We included participating securities, which are certain equity awards that have non-forfeitable dividend participation rights, in the calculations of basic and 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. During the year ended December 31, 2017 , certain of our convertible notes were determined to be dilutive and were included in the calculation of diluted EPS under the "if-converted" method. Under this method, the periodic interest expense (net of applicable taxes) for dilutive notes is added back to the numerator and the weighted average number of shares that the notes are entitled to (if converted, regardless of whether they are in or out of the money) are included in the denominator. For the years ended December 31, 2017 and 2016, no common shares related to the assumed conversion of our convertible notes were antidilutive and excluded from the calculation of diluted earnings per share. For the year ended December 31, 2015 , 21,292,309 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 years ended December 31, 2017 , 2016 , and 2015 , the number of outstanding equity awards that were antidilutive totaled 5,843 , zero , and 103,253 , respectively. Stock Repurchases In February 2016, our Board of Directors approved an authorization for the repurchase of up to $100 million of our common stock and also authorized the repurchase of outstanding debt securities, including convertible and exchangeable debt. This authorization replaced all previous share repurchase plans and has no expiration date. During the year ended December 31, 2017 , we repurchased 610,342 shares of common stock pursuant to this authorization for $9 million . At December 31, 2017 , approximately $77 million of this current authorization remained available for the repurchase of shares of our common stock. During the period between December 31, 2017 and February 26, 2018, we repurchased 1,040,829 shares of our common stock pursuant to this authorization for $16 million . In February 2018, our Board of Directors approved an authorization for the repurchase of an additional $39 million of our common stock, increasing the total amount authorized for repurchases of common stock to $100 million , and also authorized the repurchase of outstanding debt securities, including convertible and exchangeable debt. As noted above, this authorization increased the previous share repurchase authorization approved in February 2016 and has no expiration date. This repurchase authorization does not obligate us to acquire any specific number of shares or securities. Under this authorization, shares or securities may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. At February 26, 2018, approximately $100 million of this current authorization remained available for repurchases of shares of our common stock. Like other investments we may make, any repurchases of our common stock or debt securities under this authorization would reduce our available capital described above.

Equity Compensation Plans

Equity Compensation Plans	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Equity Compensation Plans	Equity Compensation Plans At December 31, 2017 and December 31, 2016 , 1,356,438 and 1,787,974 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 $21 million at December 31, 2017 , as shown in the following table. Table 16.1 – Activities of Equity Compensation Costs by Award Type Year Ended December 31, 2017 (In Thousands) Restricted Stock Deferred Stock Units Performance Stock Units Employee Stock Purchase Plan Total Unrecognized compensation cost at beginning of period $ 2,091 $ 11,506 $ 4,549 $ — $ 18,146 Equity grants 2,247 8,797 3,050 129 14,223 Equity grant forfeitures (286 ) (472 ) — — (758 ) Equity compensation expense (1,244 ) (6,467 ) (2,301 ) (129 ) (10,141 ) Unrecognized Compensation Cost at End of Period $ 2,808 $ 13,364 $ 5,298 $ — $ 21,470 At December 31, 2017 , the weighted average amortization period remaining for all of our equity awards was less than two years. Restricted Stock The following table summarizes the activities related to restricted stock for the years ended December 31, 2017 , 2016 , and 2015 . Table 16.2 – Restricted Stock Activities Years Ended December 31, 2017 2016 2015 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of period 204,515 $ 14.27 187,180 $ 18.22 109,464 $ 15.97 Granted 134,364 16.52 144,056 11.89 141,069 19.03 Vested (61,928 ) 14.97 (50,107 ) 17.28 (42,675 ) 14.87 Forfeited (19,444 ) 14.78 (76,614 ) 18.01 (20,678 ) 18.74 Outstanding at End of Period 257,507 $ 15.23 204,515 $ 14.27 187,180 $ 18.22 The expenses recorded for restricted stock awards were $1 million for each of the years ended December 31, 2017 , 2016, and 2015 . As of December 31, 2017 , there was $3 million of unrecognized compensation cost related to unvested restricted stock. This cost will be recognized over a weighted average period of less than two years. Restrictions on shares of restricted stock outstanding lapse through 2021 . Deferred Stock Units (“DSUs”) The following table summarizes the activities related to DSUs for the years ended December 31, 2017 , 2016 , and 2015 . Table 16.3 – Deferred Stock Units Activities Years Ended December 31, 2017 2016 2015 Units Weighted Units Weighted Units Weighted Outstanding at beginning of period 1,848,862 $ 16.46 2,407,154 $ 16.45 2,168,824 $ 16.20 Granted 565,921 16.01 565,061 13.33 583,958 16.11 Distributions (504,417 ) 18.09 (1,060,459 ) 14.64 (335,461 ) 14.20 Forfeitures (31,875 ) 14.80 (62,894 ) 18.66 (10,167 ) 16.60 Balance at End of Period 1,878,491 $ 15.92 1,848,862 $ 16.46 2,407,154 $ 16.45 We generally grant DSUs annually, as part of our compensation process. In addition, DSUs are granted from time to time in connection with hiring and promotions and in lieu of the payment in cash of a portion of annual bonus earned. At December 31, 2017 , 2016 , and 2015 , the number of outstanding DSUs that were unvested was 988,656 , 908,963 , and 1,043,606 , respectively. The weighted average grant-date fair value of these unvested DSUs was $15.20 , $14.96 , and $17.22 at December 31, 2017 , 2016 , and 2015 , respectively. Unvested DSUs at December 31, 2017 will vest through 2021 . Expenses related to DSUs were $6 million , $9 million , and $7 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively. During the first quarter of 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. At December 31, 2017 , there was $13 million of unrecognized compensation cost related to unvested DSUs. This cost will be recognized over a weighted average period of less than two years. At December 31, 2017 , 2016 , and 2015 , the number of outstanding DSUs that had vested was 889,835 , 939,899 , and 1,363,548 , respectively. Performance Stock Units (“PSUs”) At December 31, 2017 and December 31, 2016 , the target number of PSUs that were unvested was 704,270 and 642,879 , respectively. During 2017 , 2016 , and 2015 , 273,054 , 194,484 , and 356,762 target number of PSUs were granted, respectively, with per unit grant date fair values of $11.17 , $13.24 , and $9.46 , respectively. During the years ended December 31, 2017 and 2015, there were no PSUs forfeited due to employee departures. During the year ended December 31, 2016 , there were 208,330 target number of PSUs forfeited due to employee departures. With respect to the PSUs granted in 2017 and 2015, vesting will generally occur at the end of three years from their grant date, with the level of vesting at that time contingent on total shareholder return ("TSR"). TSR for the PSUs granted in 2017 and 2015 is defined as the percentage by which our common stock “per share price” has increased or decreased as of the last day of the three -year vesting period relative to the first day of such vesting period, adjusted to reflect the reinvestment of all dividends declared and/or paid on our common stock (“ Three -Year TSR”). The number of underlying shares of our common stock that will vest in future years will vary between 0% (if Three -Year TSR is zero or 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. With respect to the PSUs granted in 2016, vesting will generally occur at the end of three years from their grant date based on four different two -year TSR performance measurement periods and continued employment through December 13, 2019. For purposes of measuring TSR over a three -year vesting period, the PSUs granted in 2016 are divided into four tranches with staggered two -year performance measurement periods beginning on: the grant date; the three-month anniversary of the grant date; the six-month anniversary of the grant date; and the nine-month anniversary of the grant date, respectively. Performance-based vesting of each tranche is based on TSR over the respective two -year performance measurement period. TSR for the PSUs granted in 2016 is defined as the percentage by which our common stock “per share price” has increased or decreased as of the last day of each two -year performance measurement period relative to the first day of such performance measurement period, adjusted to reflect the reinvestment of all dividends declared and/or paid on our common stock (“ Two -Year TSR”). The PSUs earned for each of the four two -year periods will vest and be distributed in December 2019. The number of underlying common shares of our common stock that will vest will vary between 0% (if the Two -Year TSR for a tranche is zero or negative) and 200% (if the Two -Year TSR for a tranche is greater than or equal to 72% ) of the target number of PSUs originally granted in each tranche, adjusted upward (if vesting is greater than 0% ) to reflect the value of dividends paid during the three -year vesting period. The grant date fair values of 2017 PSUs were determined through Monte-Carlo simulations using the following assumptions: our common stock closing price at the grant date, the average closing price of our common stock price for the 60 trading days prior to the grant date and the range of performance-based vesting based on TSR over three years from the grant date. For the 2017 PSU grant, an implied volatility assumption of 27% (based on historical volatility), a risk-free rate of 1.90% (the three -year Treasury rate on the grant date), and a 0% dividend yield (the mathematical equivalent to reinvesting the dividends over the three -year performance period as is consistent with the terms of the PSUs) were used. The grant date fair values of the 2016 PSUs were determined through Monte-Carlo simulations using the following assumptions: our common stock closing price at the grant date, the average closing price of our common stock price for the 60 trading days prior to the grant date and the range of performance-based vesting based on TSR over four separate two -year performance periods. For the 2016 PSU grant, an implied volatility assumption of 29% (based on historical volatility), a risk-free rate of 1.57% (the three -year Treasury rate on the grant date), and a 0% dividend yield (the mathematical equivalent to reinvesting the dividends over the three -year performance period as is consistent with the terms of the PSUs), were used. The grant date fair values of the 2015 PSUs were determined through Monte-Carlo simulations using the following assumptions: our common stock closing price at the grant date, the average closing price of our common stock price for the 40 trading days prior to the grant date and the range of performance-based vesting based on TSR over three years from the grant date. For the 2015 PSU grant, an implied volatility assumption of 26% (based on historical volatility), a risk-free rate of 1.35% (the three -year Treasury rate on the grant date), and a 0% dividend yield (the mathematical equivalent to reinvesting the dividends over the three -year performance period as is consistent with the terms of the PSUs) were used. Expenses related to PSUs were $2 million for the year ended December 31, 2017 , and $3 million for each of the years ended December 31, 2016 , and 2015 . During the first quarter of 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 departure dates in 2016 in accordance with the terms of their employment agreements. As of December 31, 2017 , there was $5 million of unrecognized compensation cost related to unvested PSUs. With respect to the PSUs granted in 2014, the three -year performance period ended during the fourth quarter of 2017, resulting in the vesting of zero shares of our underlying common stock. With respect to the PSUs granted in 2013, the three -year performance period ended during the fourth quarter of 2016, resulting in the vesting of zero shares of our underlying common stock. With respect to the PSUs granted in 2012, the three -year performance period ended during the fourth quarter of 2015, resulting in the vesting of 57,049 shares of our underlying common stock. The distribution of these underlying shares of common stock occurred in December 2015 in accordance with the terms of the PSUs and our Executive Deferred Compensation Plan. Employee Stock Purchase Plan ("ESPP") The ESPP allows a maximum of 450,000 shares of common stock to be purchased in aggregate for all employees. As of December 31, 2017 , 361,006 shares had been purchased, respectively, and there remained a negligible amount of uninvested employee contributions in the ESPP at December 31, 2017 . The following table summarizes the activities related to the ESPP for the years ended December 31, 2017 , 2016 , and 2015 . Table 16.4 – Employee Stock Purchase Plan Activities Years Ended December 31, (In Thousands) 2017 2016 2015 Balance at beginning of period $ 3 $ 18 $ 3 Employee purchases 305 290 475 Cost of common stock issued (304 ) (305 ) (460 ) Balance at End of Period $ 4 $ 3 $ 18 Executive Deferred Compensation Plan The following table summarizes the cash account activities related to the EDCP for the years ended December 31, 2017 , 2016 , and 2015 . Table 16.5 – EDCP Cash Accounts Activities Years Ended December 31, (In Thousands) 2017 2016 2015 Balance at beginning of period $ 2,088 $ 2,095 $ 2,049 New deferrals 750 558 600 Accrued interest 58 53 61 Withdrawals (725 ) (618 ) (615 ) Balance at End of Period $ 2,171 $ 2,088 $ 2,095

Mortgage Banking Activities, Ne

Mortgage Banking Activities, Net	12 Months Ended
	Dec. 31, 2017
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 years ended December 31, 2017 , 2016 , and 2015 . Table 17.1 – Mortgage Banking Activities Years Ended December 31, (In Thousands) 2017 2016 2015 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ 69,373 $ 31,399 $ 53,946 Sequoia securities — 1,455 (15,261 ) Risk management derivatives (2) (17,529 ) 5,696 (34,457 ) Other income (expense), net (3) 2,064 2,203 4,040 Total residential mortgage banking activities, net 53,908 40,753 8,268 Commercial Mortgage Banking Activities, Net — (2,062 ) 2,704 Mortgage Banking Activities, Net $ 53,908 $ 38,691 $ 10,972 (1) Includes changes in fair value for associated loan purchase and forward sale commitments. (2) Represents market valuation changes of derivatives that were used to manage risks associated with our accumulation of residential loans. (3) Amounts in this line item include other fee income from loan acquisitions and the provision for repurchases expense, presented net.

Investment Fair Value Changes,

Investment Fair Value Changes, Net	12 Months Ended
	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Investment 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 years ended December 31, 2017 , 2016 and 2015 . Table 18.1 – Investment Fair Value Changes Years Ended December 31, (In Thousands) 2017 2016 2015 Investment Fair Value Changes, Net Changes in fair value of: Residential loans held-for-investment, at Redwood $ (5,765 ) $ (23,102 ) $ (6,337 ) Trading securities 39,526 9,666 (2,019 ) Net investments in Legacy Sequoia entities (1) (8,027 ) (4,200 ) (1,192 ) Net investments in Sequoia Choice entities (1) (323 ) — — Risk-sharing investments (1,484 ) (1,151 ) (1,886 ) Risk management derivatives, net (12,842 ) (9,112 ) (9,677 ) Valuation adjustments on commercial loans held-for-sale 300 (307 ) — Impairments on AFS securities (1,011 ) (368 ) (246 ) Investment Fair Value Changes, Net $ 10,374 $ (28,574 ) $ (21,357 ) (1) Includes changes in fair value of the residential loans held-for-sale, REO and the ABS issued at the entities, which netted together represent the change in value of our retained investments at the consolidated VIEs.

Operating Expenses

Operating Expenses	12 Months Ended
	Dec. 31, 2017
Other Income and Expenses [Abstract]
Operating Expenses	Operating Expenses Components of our operating expenses for the years ended December 31, 2017 , 2016 and 2015 are presented in the following table. Table 19.1 – Components of Operating Expenses Years Ended December 31, (In Thousands) 2017 2016 2015 Fixed compensation expense $ 22,111 $ 24,332 $ 35,093 Variable compensation expense (1) 20,574 16,581 12,606 Equity compensation expense 10,141 9,093 11,921 Total compensation expense 52,826 50,006 59,620 Systems and consulting 7,073 9,037 10,212 Loan acquisition costs (2) 5,022 5,744 10,326 Office costs 4,248 4,550 5,270 Accounting and legal 2,842 3,658 4,837 Corporate costs 1,856 2,106 2,049 Other operating expenses 3,289 3,284 5,102 Operating expenses before restructuring charges 77,156 78,385 97,416 Restructuring charges (3) — 10,401 — Total Operating Expenses $ 77,156 $ 88,786 $ 97,416 (1) Variable compensation expense in 2017 includes $2 million of costs associated with the hiring of a new executive officer. (2) Loan acquisition costs primarily includes underwriting and due diligence costs related to the acquisition of residential loans held-for-sale at fair value. (3) For the year ended December 31, 2016, restructuring charges included $5 million of fixed compensation expense and $3 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 10 for further discussion on restructuring charges.

Taxes

Taxes	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Taxes	Taxes Components of our net deferred tax assets at December 31, 2017 and December 31, 2016 are presented in the following table. Table 20.1 – Deferred Tax Assets (Liabilities) (In Thousands) December 31, 2017 December 31, 2016 Deferred Tax Assets Net operating loss carryforward – state $ 108,085 $ 89,350 Net capital loss carryforward – state — 15,346 Net operating loss carryforward – federal — 9,537 Net capital loss carryforward – federal 535 2,283 Real estate assets — 5,601 Interest rate agreements 1,380 — Allowances and accruals 2,044 3,059 Other 1,844 2,192 Total Deferred Tax Assets 113,888 127,368 Deferred Tax Liabilities Real estate assets (562 ) — Mortgage Servicing Rights (20,540 ) (22,531 ) Interest rate agreements — (2,167 ) Tax effect of unrealized gains – OCI (1,166 ) (1,636 ) Total Deferred Tax Liabilities (22,268 ) (26,334 ) Valuation allowance (103,384 ) (101,932 ) Total Deferred Tax Asset (Liability), net of Valuation Allowance $ (11,764 ) $ (898 ) The deferred tax assets and liabilities reported above, with the exception of the state net operating loss and capital loss carryforwards, relate solely to our TRS. For state purposes, the REIT files a unitary combined return with its TRS. Because the REIT may have state taxable income apportioned to it from the activity of its TRS, we report the entire combined unitary state net operating loss and capital loss carryforwards as deferred tax assets, including the carryforwards allocated to the REIT. Realization of our deferred tax assets ("DTAs") at December 31, 2017 , is dependent on many factors, including generating sufficient taxable income prior to the expiration of NOL carryforwards and generating sufficient capital gains in future periods prior to the expiration of capital loss carryforwards. We determine the extent to which realization of the deferred assets is not assured and establish a valuation allowance accordingly. As a result of GAAP income generated at our TRS in 2017 and 2016, we are reporting net federal ordinary and capital deferred tax liabilities ("DTLs") at December 31, 2017 and December 31, 2016 and consequently no valuation allowance was recorded against any federal DTA in either of these periods. Consistent with prior periods, at December 31, 2017 , we continued to maintain a valuation allowance against our net state DTAs as we remain uncertain about our ability to generate sufficient income in future periods needed to utilize net state DTAs beyond the reversal of our state DTLs. Our estimate of net deferred tax assets could change in future periods to the extent that actual or revised estimates of future taxable income during the carryforward periods change from current expectations. We assessed our tax positions for all open tax years (i.e., Federal, 2014 to 2017 , and State, 2013 to 2017 ) and, at December 31, 2017 and December 31, 2016 , concluded that we had no uncertain tax positions that resulted in material unrecognized tax benefits. At December 31, 2017 , our federal NOL carryforward at the REIT was $57 million , which will expire in 2029 . In order to utilize NOLs at the REIT, taxable income must exceed dividend distributions. At December 31, 2017 , our taxable REIT subsidiaries had no federal NOLs, as they were fully utilized in 2017. Redwood and its taxable subsidiaries accumulated an estimated state NOL of $1.26 billion at December 31, 2017 . These NOLs expire beginning in 2029 . If certain substantial changes in the Company’s ownership occur, there could be an annual limitation on the amount of the carryforwards that can be utilized. The following table summarizes the provision for income taxes for the years ended December 31, 2017 , 2016 , and 2015 . Table 20.2 – Provision for Income Taxes Years Ended December 31, (In Thousands) 2017 2016 2015 Current Provision for Income Taxes Federal $ 512 $ 1,477 $ 144 State 361 331 167 Total Current Provision for Income Taxes 873 1,808 311 Deferred Provision for Income Taxes Federal 10,991 1,910 (10,198 ) State (112 ) (10 ) (459 ) Total Deferred Provision for (Benefit from) Income Taxes 10,879 1,900 (10,657 ) Total Provision for (Benefit from) Income Taxes $ 11,752 $ 3,708 $ (10,346 ) The total provision for income taxes for the year ended December 31, 2017 included a benefit of $8 million due to a reduction of net deferred tax liabilities resulting from the Tax Cuts and Jobs Act of 2017 (the "Tax Act”) that reduces the federal statutory tax rate for tax years beginning after December 31, 2017 . In accordance with Staff Accounting Bulletin No. 118, the Company has determined that the income tax effects for the year ended December 31, 2017 related to the Tax Act are complete and no amounts are estimated, provisional, or incomplete. The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at December 31, 2017 , 2016 , and 2015 . Table 20.3 – Reconciliation of Statutory Tax Rate to Effective Tax Rate December 31, 2017 December 31, 2016 December 31, 2015 Federal statutory rate 34.0 % 34.0 % 34.0 % State statutory rate, net of Federal tax effect 7.2 % 7.2 % 7.2 % Differences in taxable (loss) income from GAAP income (3.9 )% (1.0 )% (20.3 )% Change in valuation allowance (1.0 )% (11.2 )% 6.1 % Dividends paid deduction (23.4 )% (26.3 )% (38.3 )% Federal statutory rate change (5.2 )% — % — % Effective Tax Rate 7.7 % 2.7 % (11.3 )% We believe that we have met all requirements for qualification as a REIT for federal income tax purposes. Many requirements for qualification as a REIT are complex and require analysis of particular facts and circumstances. Often there is only limited judicial or administrative interpretive guidance and as such there can be no assurance that the Internal Revenue Service or courts would agree with our various tax positions. If we did not meet the requirements for statutory relief, we could be subject to a 100% prohibited transaction tax for certain transactions, be required to distribute additional dividends, or be subject to federal corporate income tax on our taxable income. We could also potentially lose our REIT status. Any of these outcomes could have a material adverse impact on our consolidated financial statements.

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Segment Information	Segment Information Redwood operates in two segments: Investment Portfolio and Residential Mortgage Banking. Beginning in the first quarter of 2017, we eliminated our Commercial segment and renamed our Residential Investments segment as the Investment Portfolio segment. Our segments are based on our organizational and management structure, which aligns with how our results are monitored and performance is assessed. The accounting policies of the reportable segments are the same as those described in Note 3 — Summary of Significant Accounting Policies . For a full description of our segments, see Item 1 —Business in this Annual Report on Form 10-K. Segment contribution represents the measure of profit that management uses to assess the performance of our business segments and make resource allocation and operating decisions. Certain corporate expenses not directly assigned or allocated to one of our two segments, as well as activity from certain consolidated Sequoia entities and commercial mortgage banking activities (in prior years) are included in the Corporate/Other column as reconciling items to our consolidated financial statements. These unallocated corporate 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 years ended December 31, 2017 , 2016 , and 2015 . Table 21.1 – Business Segment Financial Information Year Ended December 31, 2017 (In Thousands) Investment Portfolio Residential Mortgage Banking Corporate/ Other Total Interest income $ 188,760 $ 39,309 $ 19,988 $ 248,057 Interest expense (36,690 ) (17,369 ) (54,757 ) (108,816 ) Net interest income (loss) 152,070 21,940 (34,769 ) 139,241 Non-interest income Mortgage banking activities, net — 53,908 — 53,908 MSR income, net 7,860 — — 7,860 Investment fair value changes, net 18,414 — (8,040 ) 10,374 Other income 4,576 — — 4,576 Realized gains, net 14,107 — (752 ) 13,355 Total non-interest income, net 44,957 53,908 (8,792 ) 90,073 Direct operating expenses (6,028 ) (25,113 ) (46,015 ) (77,156 ) Provision for income taxes (5,328 ) (6,424 ) — (11,752 ) Segment Contribution $ 185,671 $ 44,311 $ (89,576 ) Net Income $ 140,406 Non-cash amortization income (expense), net $ 20,974 $ (102 ) $ (3,410 ) $ 17,462 Year Ended December 31, 2016 (In Thousands) Investment Portfolio Residential Mortgage Banking Corporate/ Total Interest income $ 192,200 $ 33,661 $ 20,494 $ 246,355 Interest expense (22,997 ) (14,191 ) (51,340 ) (88,528 ) Net interest income (loss) 169,203 19,470 (30,846 ) 157,827 Reversal of provision for loan losses 7,102 — — 7,102 Non-interest income Mortgage banking activities, net — 40,753 (2,062 ) 38,691 MSR income, net 14,353 — — 14,353 Investment fair value changes, net (24,367 ) — (4,207 ) (28,574 ) Other income 6,338 — — 6,338 Realized gains, net 27,717 — 292 28,009 Total non-interest income, net 24,041 40,753 (5,977 ) 58,817 Direct operating expenses (1) (10,421 ) (23,252 ) (55,113 ) (88,786 ) Provision for income taxes (1,848 ) (1,860 ) — (3,708 ) Segment Contribution $ 188,077 $ 35,111 $ (91,936 ) Net Income $ 131,252 Non-cash amortization income (expense), net $ 29,806 $ (130 ) $ (3,972 ) $ 25,704 Year Ended December 31, 2015 (In Thousands) Investment Portfolio Residential Mortgage Banking Corporate/ Total Interest income $ 177,595 $ 52,260 $ 29,577 $ 259,432 Interest expense (22,684 ) (17,207 ) (55,992 ) (95,883 ) Net interest income (loss) 154,911 35,053 (26,415 ) 163,549 Reversal of provision for loan losses 355 — — 355 Non-interest income Mortgage banking activities, net — 8,268 2,704 10,972 MSR loss, net (3,922 ) — — (3,922 ) Investment fair value changes, net (20,089 ) — (1,268 ) (21,357 ) Other income 3,192 — — 3,192 Realized gains, net 36,369 — — 36,369 Total non-interest income, net 15,550 8,268 1,436 25,254 Direct operating expenses (7,179 ) (43,182 ) (47,055 ) (97,416 ) Benefit from income taxes 846 4,169 5,331 10,346 Segment Contribution $ 164,483 $ 4,308 $ (66,703 ) Net Income $ 102,088 Non-cash amortization income (expense), net $ 36,583 $ (186 ) $ (3,994 ) $ 32,403 Hedging allocations (1,070 ) 1,120 (50 ) — (1) For the year ended December 31, 2016, charges associated with the restructuring of our conforming residential mortgage loan operations and commercial operations, included in the direct operating expense line item, are presented under the Corporate/Other column. See Note 10 for further discussion of these restructuring charges. The following table presents the components of Corporate/Other for the years ended December 31, 2017 , 2016 , and 2015 . Table 21.2 – Components of Corporate/Other Years Ended December 31, 2017 2016 2015 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 19,407 $ 581 $ 19,988 $ 19,537 $ 957 $ 20,494 $ 24,814 $ 4,763 $ 29,577 Interest expense (14,789 ) (39,968 ) (54,757 ) (13,103 ) (38,237 ) (51,340 ) (15,646 ) (40,346 ) (55,992 ) Net interest income (loss) 4,618 (39,387 ) (34,769 ) 6,434 (37,280 ) (30,846 ) 9,168 (35,583 ) (26,415 ) Non-interest income Mortgage banking activities, net — — — — (2,062 ) (2,062 ) — 2,704 2,704 Investment fair value changes, net (8,027 ) (13 ) (8,040 ) (4,200 ) (7 ) (4,207 ) (1,192 ) (76 ) (1,268 ) Realized gains, net — (752 ) (752 ) — 292 292 — — — Total non-interest (loss) income, net (8,027 ) (765 ) (8,792 ) (4,200 ) (1,777 ) (5,977 ) (1,192 ) 2,628 1,436 Direct operating expenses — (46,015 ) (46,015 ) — (55,113 ) (55,113 ) — (47,055 ) (47,055 ) Benefit from income taxes — — — — — — — 5,331 5,331 Total $ (3,409 ) $ (86,167 ) $ (89,576 ) $ 2,234 $ (94,170 ) $ (91,936 ) $ 7,976 $ (74,679 ) $ (66,703 ) (1) Legacy consolidated VIEs represent legacy Sequoia entities that are consolidated for GAAP financial reporting purposes. See Note 4 for further discussion on VIEs. The following table presents supplemental information by segment at December 31, 2017 and December 31, 2016. Table 21.3 – Supplemental Segment Information (In Thousands) Investment Portfolio Residential Mortgage Banking Corporate/ Other Total December 31, 2017 Residential loans $ 3,054,448 $ 1,427,945 $ 632,817 $ 5,115,210 Real estate securities 1,476,510 — — 1,476,510 Mortgage servicing rights 63,598 — — 63,598 Total assets 4,743,873 1,453,069 842,880 7,039,822 December 31, 2016 Residential loans $ 2,261,016 $ 835,399 $ 791,636 $ 3,888,051 Real estate securities 1,018,439 — — 1,018,439 Mortgage servicing rights 118,526 — — 118,526 Total assets 3,615,535 866,356 1,001,586 5,483,477

Quarterly Financial Data - Unau

Quarterly Financial Data - Unaudited	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data - Unaudited	Quarterly Financial Data - Unaudited Three Months Ended (In Thousands, except Share Data) December 31, September 30, June 30, March 31, 2017 Operating results: Interest income $ 71,468 $ 62,737 $ 59,224 $ 54,628 Interest expense (36,108 ) (27,443 ) (24,234 ) (21,031 ) Net interest income 35,360 35,294 34,990 33,597 Non-interest income 10,951 26,070 25,297 27,755 Operating expenses (20,367 ) (19,922 ) (18,641 ) (18,226 ) Net income 30,933 36,180 36,324 36,969 Per share data: Net income – basic $ 0.39 $ 0.46 $ 0.46 $ 0.47 Net income – diluted 0.35 0.41 0.43 0.43 Regular dividends declared per common share 0.28 0.28 0.28 0.28 2016 Operating results: Interest income (1) $ 56,334 $ 60,906 $ 66,787 $ 62,328 Interest expense (20,537 ) (21,597 ) (22,444 ) (23,950 ) Net interest income 35,797 39,309 44,343 38,378 Reversal of (provision for) loan losses (2) — 859 6,532 (289 ) Non-interest income (3) 9,763 33,712 10,888 4,454 Operating expenses (4) (17,824 ) (20,355 ) (20,155 ) (30,452 ) Net income 25,355 52,553 41,281 12,063 Per share data: Net income – basic $ 0.32 $ 0.67 $ 0.52 $ 0.15 Net income – diluted 0.31 0.58 0.48 0.15 Regular dividends declared per common share 0.28 0.28 0.28 0.28 (1) Interest income from the three-month period ended June 30, 2016 included $5 million of yield maintenance fees from commercial loans that prepaid during the quarter. (2) During the second quarter of 2016, we recorded a reversal of provision for loan losses of $7 million as a result of the transfer of most of our commercial mezzanine loans from held-for-investment to held-for sale. (3) Non-interest income for the three-month period ended September 30, 2016 included $5 million of realized gains from the sale of the majority of our commercial mezzanine loan portfolio. (4) During the first quarter of 2016, we recorded restructuring charges totaling $10 million associated with the restructuring of our conforming and commercial mortgage banking operations.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events In February 2018, our Board of Directors approved an authorization for the repurchase of an additional $39 million of our common stock, increasing the total amount authorized for repurchases of common stock to $100 million , and also authorized the repurchase of outstanding debt securities, including convertible and exchangeable debt. This authorization increased the previous share repurchase authorization approved in February 2016 and has no expiration date. This repurchase authorization does not obligate us to acquire any specific number of shares or securities. Under this authorization, shares or securities may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

Schedule IV - Mortgage Loans On

Schedule IV - Mortgage Loans On Real Estate	12 Months Ended
	Dec. 31, 2017
Mortgage Loans on Real Estate [Abstract]
Schedule IV - Mortgage Loans On Real Estate	(In Thousands) Description Number of Loans Interest Rate Maturity Date Carrying Amount (1) Principal Amount Subject to Delinquent Principal or Interest Residential Loans Held-for-Investment At Redwood: Hybrid ARM loans 259 2.63 % to 6.00% 2040-09 - 2047-11 $ 204,771 $ — Fixed loans 3,033 2.75 % to 6.75% 2022-10 - 2048-01 2,229,616 — At Legacy Sequoia: ARM loans 3,145 1.00 % to 5.63% 2019-02 - 2036-05 619,777 24,816 Hybrid ARM loans 33 2.63 % to 3.75% 2033-07 - 2034-12 13,039 641 At Sequoia Choice: Fixed loans 806 2.75 % to 6.50% 2037-02 - 2047-11 620,062 — Total Residential Loans Held-for-Investment $ 3,687,265 $ 25,457 Residential Loans Held-for-Sale: ARM loans 3 1.50 % to 3.00% 2032-11 - 2033-10 $ 298 $ — Hybrid ARM loans 93 2.88 % to 4.00% 2044-08 - 2048-01 79,347 — Fixed loans 1,917 2.88 % to 6.25% 2029-05 - 2048-01 1,348,300 459 Total Residential Loans Held-for-Sale $ 1,427,945 $ 459 (1) The aggregate cost for Federal income tax purposes of our mortgage loans held at Redwood approximates the carrying values, as disclosed in the schedule. For our held-for-investment loans at consolidated Legacy Sequoia and Sequoia Choice entities, the aggregate cost for Federal income tax purposes at December 31, 2017 was zero, as the transfers of these loans into Sequoia securitizations were treated as sales for tax purposes. The following table summarizes the changes in the carrying amount of mortgage loans on real estate during the years ended December 31, 2017, 2016, and 2015. Years Ended December 31, (In Thousands) 2017 2016 2015 Balance at beginning of period $ 3,890,751 $ 4,331,450 $ 3,965,500 ASU 2014-13 election adjustment — — (103,649 ) Adjusted beginning balance 3,890,751 4,331,450 3,861,851 Additions during period: Originations/acquisitions 5,741,427 4,983,049 11,115,486 Net discount accretion — 330 747 Deductions during period: Sales (3,982,683 ) (4,509,644 ) (10,071,061 ) Principal repayments (576,620 ) (879,188 ) (582,187 ) Reversal of provision for loan losses — 7,102 355 Transfers to REO (4,219 ) (11,566 ) (5,792 ) Deconsolidation adjustments — (6,871 ) — Changes in fair value, net 46,554 (23,911 ) 12,051 Balance at end of period $ 5,115,210 $ 3,890,751 $ 4,331,450

Summary of Significant Accoun32

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	The consolidated financial statements presented herein are at December 31, 2017 and December 31, 2016 , and for the years ended December 31, 2017 , 2016 , and 2015 . These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") — as prescribed by the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) — and the rules and regulations of the Securities and Exchange Commission ("SEC"). In the opinion of management, all normal and recurring adjustments to present fairly the financial condition of the company at December 31, 2017 and 2016 and results of operations for all periods presented have been made.
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 issued prior to 2012 where we maintain an ongoing involvement ("Legacy Sequoia"), as well as entities formed in connection with the securitization of Redwood Choice expanded-prime loans beginning in the third quarter of 2017 ("Sequoia Choice"). 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, servicing administrator, 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 owned at the consolidated Sequoia entities are shown under Residential loans held-for-investment at fair value 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 recorded interest income on the loans 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 12 for further discussion on ABS issued.
Use of Estimates	The preparation of financial statements requires us to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amounts and timing of credit losses, prepayment rates, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the consolidated financial statements and the reported amounts of certain revenues and expenses during the reported periods. It is likely that changes in these estimates (e.g., valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term. Our estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material.
Fair Value Measurements	Our consolidated financial statements include assets and liabilities that are measured at their estimated fair values in accordance with GAAP. A fair value measurement represents the price at which an orderly transaction would occur between willing market participants at the measurement date. We develop fair values for financial assets or liabilities based on available inputs and pricing that is observed in the marketplace. After considering all available indications of the appropriate rate of return that market participants would require, we consider the reasonableness of the range indicated by the results to determine an estimate that is most representative of fair value. The markets for many of the assets that we invest in and issue are generally illiquid. Establishing fair values for illiquid assets and liabilities is inherently subjective and is often dependent upon our estimates and modeling assumptions. If we determine that either the volume and/or level of trading activity for an asset or liability has significantly decreased from normal market conditions, or price quotations or observable inputs are not associated with orderly transactions, the market inputs that we obtain might not be relevant. For example, broker or pricing service quotes might not be relevant if an active market does not exist for the financial asset or liability. The nature of the quote (for example, whether the quote is an indicative price or a binding offer) is also evaluated. In circumstances where relevant market inputs cannot be obtained, increased analysis and management judgment are required to estimate fair value. This generally requires us to establish internal assumptions about future cash flows and appropriate risk-adjusted discount rates. Regardless of the valuation inputs we apply, the objective of fair value measurement for assets is unchanged from what it would be if markets were operating at normal activity levels and/or transactions were orderly; that is, to determine the current exit price.
Fair Value Option	We have the option to measure eligible financial assets, financial liabilities, and commitments at fair value on an instrument-by-instrument basis. This option is available when we first recognize a financial asset or financial liability or enter into a firm commitment. Subsequent changes in the fair value of assets, liabilities, and commitments where we have elected the fair value option are recorded in our consolidated statements of income. We elect the fair value option for certain residential loans, interest-only (“IO”) and certain subordinate securities, and MSRs. We generally elect the fair value option for residential loans that are held-for-sale, due to our intent to sell or securitize the loans in the near-term. We elect the fair value option for our IO and certain subordinate securities, and MSRs, for which we generally hedge market interest rate risk. As such, we seek to offset interest rate related changes in the values of these investments with changes in the values of their associated hedges through our consolidated statements of income. In addition, we elect the fair value option for the assets and liabilities of our consolidated Sequoia entities in accordance with GAAP accounting for collateralized financing entities ("CFEs").
Real Estate Loans	Residential Loans - Held-for-Sale at Fair Value Residential loans held-for-sale include loans that we are marketing for sale to third parties, including transfers to securitization entities that we plan to sponsor and expect to be accounted for as sales for financial reporting purposes. We generally elect the fair value option for residential loans that we purchase with the intent to sell to third parties or transfer to Sequoia securitizations. Coupon interest is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due, at which point the loan is placed on nonaccrual status. Changes in fair value are recurring and are reported through our consolidated statements of income in Mortgage banking activities, net. Residential Loans - Held-for-Sale at Lower of Cost or Market Loans held-for-sale at lower of cost or market include certain residential loans. These loans are recorded and subsequently reported at the lower of their initial carrying amount or current fair value. Coupon interest is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due, at which point the loan is placed on nonaccrual status. Loans delinquent more than 90 days or in foreclosure are characterized as a serious delinquency. Cash principal and interest that is advanced from servicers subsequent to a residential loan becoming greater than 90 days past due is accounted for as a reduction in the outstanding loan principal balance. When a seriously delinquent loan previously placed on nonaccrual status has cured, meaning all delinquent principal and interest have been remitted by the borrower, the loan is placed back on accrual status. Changes in fair value are non-recurring and are reported through our consolidated statements of income in Mortgage banking activities, net. Residential Loans Held-for-Investment - At Fair Value Certain loans that were originally purchased with the intent to sell as part of our residential mortgage banking operations, and for which we elected the fair value option at acquisition, were subsequently reclassified to held-for-investment ("HFI") when the loans were transferred to our FHLBC member subsidiary and pledged as collateral for borrowings made from the Federal Home Loan Bank of Chicago (“FHLBC”). As of December 31, 2017 , our current intent is to hold these loans for longer-term investment while they are financed by the FHLBC. In addition, we record loans held at consolidated Sequoia entities at fair value. In accordance with accounting guidance for CFEs, we use the fair value of the ABS issued by the Sequoia entities (which we determined to be more observable) to determine the fair value of the loans held at these entities. Coupon interest for these loans is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due, at which point the loan is placed on nonaccrual status. When a seriously delinquent loan previously placed on nonaccrual status has cured, meaning all delinquent principal and interest have been remitted by the borrower, the loan is placed back on accrual status. Changes in fair value are recurring and are reported through our consolidated statements of income in Investment fair value changes, net. Repurchase Reserves We sell and have sold residential mortgage loans to various parties, including (1) securitization trusts, (2) Fannie Mae and Freddie Mac (“the Agencies”), and (3) banks and other financial institutions that purchase mortgage loans for investment or private label securitization. We may be required to repurchase residential mortgage loans we have sold, or loans associated with MSRs we have purchased, in the event of a breach of specified contractual representations and warranties made in connection with these sales and purchases. With respect to MSRs we purchased, if the associated residential loan was sold to one of the Agencies (which was typically the case), that Agency can require us, as the owner of the MSR, to repurchase the residential loan in the event of such a breach of representations and warranties even though we were not the party that sold the associated loan to that Agency. In January 2016, we discontinued the acquisition and aggregation of conforming loans for resale to the Agencies. We do not originate residential mortgage loans and believe the initial risk of loss due to loan repurchases (i.e., due to a breach of representations and warranties) would generally be a contingency to the companies from whom we acquired the loans or MSRs. However, in some cases, such as where loans or MSRs were acquired from companies that have since become insolvent, we may have to bear the loss associated with a loan repurchase. Furthermore, even if we do not have to ultimately bear such a loss because we can recover from the company that sold us the loan or the MSR, there could be a delay in making that recovery. We establish reserves for mortgage repurchase liabilities related to various representations and warranties that reflect management’s estimate of losses for loans for which we could have a repurchase obligation, based on a combination of factors. Such factors can include estimated future defaults and loan repurchase rates, the potential severity of loss in the event of defaults, and the probability of our being liable for a repurchase obligation. We establish a reserve at the time loans are sold and MSRs are purchased and continually update our reserve estimate during its life. The reserve for mortgage loan repurchase losses is included in other liabilities on our consolidated balance sheets and the related expense is included as a component of Mortgage banking activities, net and MSR income (loss), net on our consolidated statements of income.
Real Estate Securities, at Fair Value	Our securities primarily consist of residential mortgage backed securities (“RMBS”) and may include other residential and commercial securities. We classify our real estate securities as trading or available-for-sale securities. Nearly all of our securities are supported by collateral designated as prime at the time of issuance. Prime residential loans are generally characterized by lower loan-to-value (“LTV”) ratios at the time the loans were originated, and are made to borrowers with higher Fair Isaac Corporation (“FICO”) scores. Trading Securities We primarily denote trading securities as those securities where we have adopted the fair value option. Trading securities are carried at their estimated fair values. Coupon interest is recognized as interest income when earned and deemed collectible. Changes in the fair value of securities designated as trading securities are reported in Investment fair value changes, net on our consolidated statements of income. Available-for-Sale Securities AFS securities are carried at their estimated fair value with unrealized gains and losses excluded from earnings (except when an other-than-temporary impairment (“OTTI”) is recognized, as discussed below) and reported in Accumulated other comprehensive income (“AOCI”), a component of stockholders’ equity. Interest income on AFS securities is accrued based on their outstanding principal balance and contractual terms and interest income is recognized based on the security’s effective interest rate. In order to calculate the effective interest rate, we must project cash flows over the remaining life of each security and make assumptions with regards to interest rates, prepayment rates, the timing and amount of credit losses, and other factors. On at least a quarterly basis, we review and, if appropriate, make adjustments to our cash flow projections based on input and analysis received from external sources, internal models, and our own judgments about interest rates, prepayment rates, the timing and amount of credit losses, and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in the yield and interest income recognized on these securities or in the recognition of OTTI as discussed below. For AFS securities purchased and held at a discount, a portion of the discount may be designated as non-accretable purchase discount (“credit reserve”), based on the cash flows we have projected for the security. The amount designated as credit reserve may be adjusted over time, based on our periodic evaluation of projected cash flows. If the performance of a security with a credit reserve is more favorable than previously forecasted, a portion of the credit reserve may be reallocated to accretable discount and recognized into interest income over time. Conversely, if the performance of a security with a credit reserve is less favorable than forecasted, the amount designated as credit reserve may be increased, or impairment charges and write-downs of such securities to a new cost basis could result. When the fair value of an AFS security is less than its amortized cost at the reporting date, the security is considered impaired. We assess our impaired securities at least quarterly to determine if the impairment is temporary or other-than-temporary (resulting in an OTTI). If we either - (i) intend to sell the impaired security; (ii) will more likely than not be required to sell the impaired security before it recovers in value; or (iii) if there has been an adverse change in cash flows - the impairment is deemed an OTTI. In the case of criteria (i) and (ii), we record the entire difference between the security’s estimated fair value and its amortized cost at the reporting date as an impairment through market valuation adjustments on our consolidated statements of income. If there has been an adverse change in cash flows, only the portion of the OTTI related to “credit” losses is recognized through other market valuation adjustments on our consolidated statements of income, with the remaining “non-credit” portion recognized through AOCI on our consolidated balance sheets. If the first two criteria are not met and there has not been an adverse change in cash flows, the impairment is considered temporary and the entire unrealized loss is recognized through AOCI on our consolidated balance sheets. For impaired AFS securities, to determine if there has been an adverse change in cash flows and if any portion of a resulting OTTI is related to credit losses, we compare the present value of the cash flows expected to be collected as of the current financial reporting date to the amortized cost basis of the security. The discount rate used to calculate the present value of expected future cash flows is the current yield used for income recognition purposes. If the present value of the current expected cash flows is less than the amortized cost basis, there has been an adverse change and the security is considered OTTI with the difference between these two amounts representing the credit loss. The determination as to whether an OTTI exists and, if so, the amount of credit impairment recognized in earnings is subjective, and based on information available at the time of the assessment as well as our estimates of future performance and cash flows. As a result, the timing and amount of OTTI constitute a material estimate that is susceptible to significant change.
MSRs	We recognize MSRs through the retention of servicing rights associated with residential mortgage loans that we acquired and subsequently transferred to third parties when the transfer meets the GAAP criteria for sale accounting, or through the direct acquisition of MSRs sold by third parties. We contract with licensed sub-servicers to perform servicing functions for loans associated with our MSRs. We have elected the fair value option for all of our MSRs, and they are initially recognized and subsequently carried at their estimated fair values. Servicing fee income from MSRs is recorded on a cash basis when received. Net servicing income and changes in the estimated fair value of MSRs are reported in MSR income (loss), net on our consolidated statements of income.
Cash and Cash Equivalents	Cash and cash equivalents include non-restricted cash and highly liquid investments with original maturities of three months or less. The Company maintains its cash and cash equivalents with major financial institutions. Accounts at these institutions are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 for each bank. The Company is exposed to credit risk for amounts held in excess of the FDIC limit. The Company does not anticipate nonperformance by these institutions
Restricted Cash	Restricted cash primarily includes cash held in association with borrowings from the Federal Home Loan Bank of Chicago, and cash associated with our risk-sharing transactions with the Agencies, as well as principal and interest payments that are collateral for, or payable to, owners of ABS issued by consolidated securitization entities.
Accrued Interest Receivable	Accrued interest receivable includes interest that is due and payable to us and deemed collectible. Cash interest is generally received within thirty days of recording the receivable. For financial assets where we have elected the fair value option, the associated accrued interest receivable on these assets is measured at fair value. For financial assets where we have not elected the fair value option, the associated accrued interest carrying values approximate fair values.
Derivative Financial Instruments	Derivative financial instruments we typically utilize include swaps, swaptions, financial futures contracts, CMBX credit default index swaps, and “To Be Announced” (“TBA”) contracts. These derivatives are primarily used to manage interest rate risk associated with our operations. In addition, we enter into certain residential loan purchase commitments (“LPCs”) and residential loan forward sale commitments (“FSCs”) that are treated as derivatives for financial reporting purposes. All derivative financial instruments are recorded at their estimated fair value on our consolidated balance sheets. Derivatives with positive fair values to us are reported as assets and derivatives with negative fair values to us are reported as liabilities. We classify each derivative as either (i) a trading instrument (no specific hedging designation for financial reporting purposes) or (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). Changes in the fair values of derivatives accounted for as trading instruments, including any associated interest income or expense, are recorded in our consolidated statements of income through MSR income (loss), net if they are used to manage risks associated with our MSR investments, through Mortgage banking activities , net if they are used to manage risks associated with our mortgage banking activities, or through Investment fair value changes, net if they are used to manage risks associated with our investments. Valuation changes related to residential LPCs and FSCs are included in Mortgage banking activities, net on our consolidated statements of income. Changes in the fair values of derivatives accounted for as cash flow hedges, to the extent they are effective, are recorded in Accumulated other comprehensive income, a component of equity on our consolidated balance sheets. Interest income or expense, and any ineffectiveness associated with these derivatives, are recorded as a component of net interest income in our consolidated statements of income. We measure the effective portion of cash flow hedges by comparing the change in fair value of the expected future variable cash flows of the derivative hedging instruments with the change in fair value of the expected future variable cash flows of the hedged item. We will discontinue a designated cash flow hedge relationship if (i) we determine that the hedging derivative is no longer expected to be effective in offsetting changes in the cash flows of the designated hedged item; (ii) the derivative expires or is sold, terminated, or exercised; (iii) the derivative is de-designated as a cash flow hedge; or (iv) it is probable that a forecasted transaction associated with the hedged item will not occur by the end of the originally specified time period. To the extent we de-designate or terminate a cash flow hedging relationship and the associated hedged item continues to exist, any unrealized gain or loss of the cash flow hedge at the time of de-designation remains in accumulated other comprehensive income and is amortized using the straight-line method through interest expense over the remaining life of the hedged item. Swaps and Swaptions Interest rate swaps are agreements in which (i) one counterparty exchanges a stream of fixed interest payments for another counterparty’s stream of variable interest cash flows; or (ii) each counterparty exchanges variable interest cash flows that are referenced to different indices. Interest rate swaptions are agreements that provide the owner the right but not the obligation to enter into an underlying interest rate swap with a counterparty in the future. We enter into swap and swaptions primarily to reduce significant changes in our income or equity caused by interest rate volatility. Certain of these interest rate agreements may be designated as cash flow hedges. Eurodollar Futures and Financial Futures Eurodollar futures are futures contracts on time deposits denominated in U.S. dollars at banks outside the United States. Eurodollar futures, unlike our other derivatives, have maturities of only three months. Therefore, in order to achieve the desired interest rate offset necessary to manage our risk, consecutively maturing contracts are required, resulting in a stated notional amount that is typically higher than our other derivatives. Financial futures are futures contracts on benchmark U.S. Treasury rates. TBA Agreements TBA agreements are forward contracts to purchase mortgage-backed securities that will be issued by a U.S. government sponsored enterprise in the future. We purchase or sell these derivatives to offset - to varying degrees - changes in the values of mortgage products for which we have exposure to interest rate volatility. Loan Purchase and Forward Sale Commitments We use the term LPCs to refer to agreements with third-party residential loan originators to purchase residential loans at a future date that qualify as a derivative under GAAP and we use the term FSCs to refer to agreements with third-parties to sell residential loans at a future date that also qualify as derivatives under GAAP. LPCs and FSCs are recorded at their estimated fair values on our consolidated balance sheets and changes in fair value are recurring and are reported through our consolidated statements of income in Mortgage banking activities, net.
Deferred Tax Assets and Liabilities	Our deferred tax assets/liabilities are generated by temporary differences in GAAP and taxable income at our taxable subsidiaries. These differences generally reflect differing accounting treatments for GAAP and tax, such as accounting for mortgage servicing rights, discount and premium amortization, credit losses, asset impairments, and certain valuation estimates. As a result of these differences, we may recognize taxable income in periods prior to when we recognize income for GAAP. When this occurs, we pay the tax liability as required and establish a deferred tax asset. As the income is subsequently realized in future periods under GAAP, the deferred tax asset is reduced. We may also recognize GAAP income in periods prior to when we recognize income for tax. When this occurs, we establish a deferred tax liability for GAAP. As the income is subsequently realized in future periods for tax, the deferred tax liability is reduced. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider historical and projected future taxable income and capital gains as well as tax planning strategies in making this assessment. We determine the extent to which realization of this deferred asset is not assured and establish a valuation allowance accordingly. The estimate of net deferred tax assets could change in future periods to the extent that actual or revised estimates of future taxable income during the carryforward periods change from current expectations.
Other Assets and Other Liabilities	Other assets primarily consists of margin receivable, FHLBC stock, MSR holdback receivable, pledged collateral, guarantee asset, and REO. Other liabilities primarily consists of accrued compensation, guarantee obligations, deferred tax liabilities, margin payable, and residential loan and MSR repurchase reserves. FHLBC Stock In accordance with its borrowing agreement with the FHLBC, our FHLB-member subsidiary is required to purchase and hold stock in the FHLBC in an amount equal to a specified percentage of outstanding advances. FHLBC stock is considered a non-marketable, long-term investment, and is carried at cost. Because this stock can only be redeemed or sold at its par value, and only to the FHLBC, carrying value, or cost, approximates fair value. Dividends received from FHLBC stock are recorded in other income, net in our consolidated statements of income. Margin Receivable and Payable Margin receivable and payable result from margin calls between us and our derivatives, master repurchase agreements, and warehouse facilities counterparties, whereby we or the counterparty were required to post collateral. Agency Risk-Sharing - Other Assets and Liabilities During 2014 and 2015, we entered into various risk-sharing arrangements with Fannie Mae and Freddie Mac. Under these arrangements, we committed to assume the first 1.00% or 2.25% (depending on the arrangement) of losses realized on reference pools of conforming residential mortgage loans that we acquired and then sold to the Agencies. As part of these risk-sharing arrangements, during the 10 -year term of our first Fannie Mae arrangement, we receive monthly cash payments from Fannie Mae based on the monthly outstanding unpaid principal balance of the reference pool of loans, and for our Freddie Mac and our subsequent Fannie Mae arrangements, the Agencies charged us a reduced guarantee fee for the reference loans we delivered to them in exchange for mortgage backed securities, which we then sold. Under these arrangements we are required to pledge assets to the Agencies to collateralize our risk-sharing commitments to them throughout the terms of the arrangements. These pledged assets are held by a third-party custodian for the benefit of the Agencies. To the extent approved losses are incurred, the custodian will transfer collateral to the Agencies. As a result of these transactions, we recorded “pledged collateral” in the other assets line item, and “guarantee obligations” in the other liabilities line item, on our consolidated balance sheets. In addition, for the first Fannie Mae transaction, we recorded a “guarantee asset” in the other assets line item on our consolidated balance sheets. The guarantee obligations represent our commitments to assume losses under these arrangements. We amortize the guarantee obligations over the 10 -year terms of the arrangements based primarily on changes in the outstanding unpaid principal balance of loans in the reference pools, with a portion of the liabilities treated as a credit reserve that is not amortized into income. In addition, each period we assess the need for a separate loss allowance related to these arrangements, based on our estimate of credit losses inherent in the reference pools of loans. Income from cash payments received under the first Fannie Mae risk-sharing arrangement and income related to the amortization of the guarantee obligations of all three arrangements are recorded in other income, and market valuation changes of the guarantee asset are recorded in Investment fair value changes, net on our consolidated statements of income. Our consolidated balance sheets include assets of the special purpose entities ("SPEs") associated with these risk-sharing arrangements (i.e., the "pledged collateral" referred to above) that can only be used to settle obligations of these SPEs and liabilities of these SPEs for which the creditors of these SPEs (the Agencies) do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016 , assets of such SPEs totaled $48 million and $49 million , respectively, and liabilities of such SPEs totaled $19 million and $22 million , respectively. See Note 14 for further discussion on loss contingencies — risk-sharing. MSR Holdback Receivable MSR holdback receivable represents amounts due from third parties related to the sale of MSRs that will be received upon the final transfer of the related servicing documentation at the end of the holdback period. See Note 10 for further discussion on other assets. REO REO property acquired through, or in lieu of, foreclosure is initially recorded at fair value, and subsequently reported at the lower of its carrying amount or fair value (less estimated cost to sell). Changes in the fair value of an REO property that has a fair value at or below its carrying amount are recorded in Investment fair value changes, net on our consolidated statements of income.
Short-Term Debt	Short-term debt includes borrowings under master repurchase agreements, loan warehouse facilities, and other forms of borrowings that expire within one year with various counterparties. These borrowings are typically collateralized by cash, loans, or securities, and in some cases may be unsecured. If the value (as determined by the applicable counterparty) of the collateral securing those borrowings decreases, we may be subject to margin calls during the period the borrowings are outstanding. In instances where we do not satisfy the margin calls within the required time frame, the counterparty may retain the collateral and pursue any outstanding debt amount from us.
Accrued Interest Payable	Accrued interest payable includes interest that is due and payable to third parties. Interest is generally paid within one to three months of recording the payable, based upon our remittance requirements, and is paid semi-annually for our convertible and exchangeable debt. Interest on our FHLB borrowings is paid every 13 weeks. For borrowings where we have elected the fair value option, the associated accrued interest on these liabilities is measured at fair value. For financial liabilities where we have not elected the fair value option, the associated accrued interest carrying values approximate fair values.
Asset-Backed Securities Issued	ABS issued represents asset-backed securities issued through the Legacy Sequoia and Sequoia Choice securitization entities. Assets at these entities are held in the custody of securitization trustees and are not owned by Redwood. These trustees collect principal and interest payments (less servicing and related fees) from the assets and make corresponding principal and interest payments to the ABS investors. In accordance with accounting guidance for CFEs, we account for the ABS issued under our consolidated Sequoia entities at fair value, with periodic changes in fair value recorded in Investment fair value changes, net on our consolidated statements of income.
Long-Term Debt	FHLBC Borrowings FHLBC borrowings include amounts borrowed by our FHLB-member subsidiary, also referred to as “advances,” from the Federal Home Loan Bank of Chicago that are secured by eligible collateral, including, but not limited to, residential mortgage loans and residential mortgage-backed securities. FHLBC borrowings are carried at their unpaid principal balance and interest on advances is paid every 13 weeks from when each respective advance is made. If the value (as determined by the FHLBC) of the collateral securing those borrowings decreases, we may be subject to margin calls during the period the borrowings are outstanding. In instances where we do not satisfy the margin calls within the required time frame, the FHLBC may foreclose upon the collateral and pursue any outstanding debt amount from us. Convertible Notes Convertible notes include unsecured convertible and exchangeable debt that are carried at their unpaid principal balance net of any unamortized deferred issuance costs. Interest on the notes is payable semiannually until such time the notes mature or are converted or exchanged into shares. If converted or exchanged by a holder, the holder of the notes would receive shares of our common stock. Trust Preferred Securities and Subordinated Notes Trust preferred securities and subordinated notes are carried at their unpaid principal balance net of any unamortized deferred issuance costs. This long-term debt is unsecured and interest is paid quarterly until it is redeemed in whole or matures at a future date. Deferred Debt Issuance Costs Deferred debt issuance costs are expenses associated with the issuance of long-term debt. These expenses typically include underwriting, rating agency, legal, accounting, and other fees. Deferred debt issuance costs are included in the carrying value of the related long-term debt issued and are amortized as an adjustment to interest expense using the interest method, based upon the actual and estimated repayment schedules of the related long-term debt issued.
Equity	Accumulated Other Comprehensive Income (Loss) Net unrealized gains and losses on real estate securities available-for-sale and interest rate agreements designated as cash flow hedges are reported as components of Accumulated other comprehensive income on our consolidated statements of changes in stockholders' equity and our consolidated balance sheets. Net unrealized gains and losses on securities and interest rate agreements held by our taxable subsidiaries that are reported in other comprehensive income are adjusted for the effects of taxation and may create deferred tax assets or liabilities. Earnings per Common Share Basic earnings per common share (“EPS”) is computed by dividing net income allocated to common shareholders by the weighted average common shares outstanding. Net income allocated to common shareholders represents net income less income allocated to participating securities (as described herein). Diluted EPS is computed by dividing income allocated to common shareholders by the weighted average common shares outstanding plus amounts representing the dilutive effect of share-based payment awards. In addition, if the assumed conversion or exchange of convertible or exchangeable debt into common shares is dilutive, diluted EPS is adjusted by adding back the periodic interest expense (net of any tax effects) associated with dilutive convertible or exchangeable debt to net income and adding the shares issued in an assumed conversion or exchange to the diluted weighted average share count. The two-class method is an earnings allocation formula under which EPS is calculated for common stock and participating securities according to dividends declared and participating rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated between participating securities and common shares based on their respective rights to receive dividends or dividend equivalents. GAAP defines vested and unvested share-based payment awards containing nonforfeitable rights to dividends or dividend equivalents as participating securities that are included in computing EPS under the two-class method.
Incentive Plans	In May 2014, our shareholders approved the 2014 Redwood Trust, Inc. Incentive Plan (“Incentive Plan”) for executive officers, employees, and non-employee directors, which replaced the 2002 Redwood Trust, Inc. Incentive Plan. The Incentive Plan provides for the grant of restricted stock, deferred stock, deferred stock units, performance-based awards (including performance stock units), dividend equivalents, stock payments, restricted stock units, and other types of awards to eligible participants. Long-term incentive awards granted under the Incentive Plan generally vest over a three - or four -year period. Awards made under the Incentive Plan to officers and other employees in lieu of the payment in cash of a portion of annual bonuses earned generally vest immediately, but are subject to a three -year mandatory holding period. Deferred stock units and restricted stock have attached dividend equivalent rights, resulting in the payment of dividend equivalents each time we pay a common stock dividend. Non-employee directors are also provided annual awards under the Incentive Plan that generally vest immediately. The cost of the awards is amortized over the vesting period on a straight-line basis. Upon adoption of ASU 2016-09 in 2016, we elected to begin accounting for forfeitures on employee equity awards as they occur. Employee Stock Purchase Plan In 2013, our shareholders approved an amendment to our previously amended 2002 Redwood Trust, Inc. Employee Stock Purchase Plan (“ESPP”) to increase the number of shares available under the ESPP. The purpose of the ESPP is to give our employees an opportunity to acquire an equity interest in the Company through the purchase of shares of common stock at a discount. The ESPP allows eligible employees to purchase common stock at 85% of its fair value, subject to certain limits. Fair value as defined under the ESPP is the lesser of the closing market price of the common stock on the first day of the calendar year or the last day of the calendar quarter. Executive Deferred Compensation Plan In 2013, our Board of Directors approved an amendment to our 2002 Executive Deferred Compensation Plan (“EDCP”) to allow non-employee directors to defer certain cash payments and dividends into DSUs. The EDCP allows eligible employees and directors to defer portions of current salary and certain other forms of compensation. The Company matches some deferrals. Compensation deferred under the EDCP is recorded as a liability on our consolidated balance sheets. The EDCP allows for the investment of deferrals in either an interest crediting account or DSUs. 401(k) Plan We offer a tax-qualified 401(k) Plan to all employees for retirement savings. Under this Plan, employees are allowed to defer and invest up to 100% of their cash earnings, subject to the maximum 401(k) Plan contribution limit set forth by the Internal Revenue Service. We match some employee contributions to encourage participation and to provide a retirement planning benefit to employees. Plan matching contributions made by the Company for the years ended December 31, 2017 , 2016 , and 2015 were $0.5 million , $0.6 million , and $0.8 million , respectively. Vesting of the 401(k) Plan matching contributions is based on the employee’s tenure at the Company, and over time an employee becomes increasingly vested in matching contributions.
Taxes	We have elected to be taxed as a REIT under the Internal Revenue Code and the corresponding provisions of state law. To qualify as a REIT we must distribute at least 90% of our annual REIT taxable income to shareholders (not including taxable income retained in our taxable subsidiaries) within the time frame set forth in the Internal Revenue Code and also meet certain other requirements related to assets, income, and stock ownership. We assess our tax positions for all open tax years and record tax benefits only if tax positions meet a more-likely-than-not threshold in accordance with GAAP guidance on accounting for uncertain tax positions. We classify interest and penalties on material uncertain tax positions as interest expense and operating expense, respectively, in our consolidated statements of income.
Recent Accounting Pronouncements	Newly Adopted Accounting Standards Updates ("ASUs") In January 2017, the FASB issued ASU 2017-03, "Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323)." This new guidance requires that companies evaluate ASUs that have not been adopted to determine the appropriate financial statement disclosures about the potential material effects of those ASUs on the financial statements when adopted. This new guidance was effective immediately. We adopted this guidance, as required, in the first quarter of 2017, which did not have a material impact on our consolidated financial statements. Other Recent Accounting Pronouncements In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." This new guidance amends previous guidance to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. 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 July 2017, the FASB issued ASU 2017-11, "Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception." This new guidance changes the classification analysis of certain equity-linked financial instruments (or embedded conversion options) with down round features. 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 do not anticipate that this update will have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation (Topic 718)." This new guidance provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. This new guidance is effective for fiscal years beginning after December 15, 2017, and should be applied prospectively to an award modified on or after the adoption date. Early adoption is permitted. We plan to adopt this new guidance by the required date and do not anticipate that this update will have a material impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, "Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20)." This new guidance shortens the amortization period for certain callable debt securities purchased at a premium by requiring the premium to be amortized to the earliest call date. 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 do not anticipate that this update will have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash." This new guidance amends previous guidance on how to classify and present changes in restricted cash on the statement of cash flows. This new guidance is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. We plan to adopt this new guidance by the required date and we will modify the presentation of our cash flow statement as required. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory." This new guidance allows an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. It also eliminates the exceptions for an intra-entity transfer of assets other than inventory. This new guidance is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. We plan to adopt this new guidance by the required date and do not anticipate that this update will have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." This new guidance provides guidance on how to present and classify certain cash receipts and cash payments in the statement of cash flows. This new guidance is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. We plan to adopt this new guidance by the required date and do not anticipate that this update will have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses." This new guidance provides a new impairment model that is based on expected losses rather than incurred losses to determine the allowance for credit losses. This new guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for fiscal years beginning December 15, 2018. Currently, we have no financial instruments for which we maintain an allowance for loan losses. As such, based on our initial evaluation of this new guidance, we do not believe the provisions in this guidance will have a material impact to how we account for these instruments. Separately, we account for our available-for-sale securities under the other-than-temporary impairment ("OTTI") model for debt securities. This new guidance requires that credit impairments on our available-for-sale securities be recorded in earnings using an allowance for credit losses, with the allowance limited to the amount by which the security's fair value is less than its amortized cost basis. Subsequent reversals in credit loss estimates are recognized in income. We plan to adopt this new guidance by the required date and continue to evaluate the impact that this update will have on 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. As discussed in Note 14 , our only material leases are those related to our leased office space, for which future payments under these leases totaled $18 million at December 31, 2017. Upon adoption of this standard in the first quarter of 2019, we will record a right-of-use asset and lease liability equal to the present value of these future lease payments discounted at our incremental borrowing rate. Based on our initial evaluation of this new guidance, and taking into consideration our current in-place leases, we do not expect that its adoption will have a material impact on our consolidated financial statements. We will continue evaluating this new standard and caution that any changes in our business or additional leases we may enter into could change our initial assessment. 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 plan to adopt this new guidance by the required date and do not anticipate that this update will have a material impact 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 was 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. In May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients," and in December 2016, the FASB issued ASU 2016-20, "Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers." These new ASUs provide more specific guidance on certain aspects of Topic 606. In September 2017, the FASB issued ASU 2017-13, "Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments (SEC Update)." This new ASU allows certain public business entities to use the nonpublic business entity effective dates for adoption of the new revenue standard. In November 2017, the FASB issued ASU 2017-14, "Income Statement - Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606): Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 116 and SEC Release No. 33-10403." This new ASU amends various paragraphs that contain SEC guidance. The adoption of these accounting standards will not have a material impact on our consolidated financial statements, as financial instruments are explicitly scoped out of these standards and nearly all of our income is generated from financial instruments. Any changes in our business or additional amendments to these standards could change our initial assessment of these accounting standards.
Balance Sheet Netting	Certain of our derivatives and short-term debt are subject to master netting arrangements or similar agreements. Under GAAP, in certain circumstances we may elect to present certain financial assets, liabilities and related collateral subject to master netting arrangements in a net position on our consolidated balance sheets. However, we do not report any of these financial assets or liabilities on a net basis, and instead present them on a gross basis on our consolidated balance sheets. The table below presents financial assets and liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with corresponding financial instruments and corresponding collateral received or pledged at December 31, 2017 and December 31, 2016 . 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 December 31, 2017 Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 10,164 $ — $ 10,164 $ (6,196 ) $ (42 ) $ 3,926 TBAs 133 — 133 (133 ) — — Futures 1 — 1 — — 1 Total Assets $ 10,298 $ — $ 10,298 $ (6,329 ) $ (42 ) $ 3,927 Liabilities (2) Interest rate agreements $ (55,567 ) $ — $ (55,567 ) $ 6,196 $ 49,371 $ — TBAs (3,808 ) — (3,808 ) 133 1,376 (2,299 ) Loan warehouse debt (1,039,666 ) — (1,039,666 ) 1,039,666 — — Security repurchase agreements (648,746 ) — (648,746 ) 648,746 — — Total Liabilities $ (1,747,787 ) $ — $ (1,747,787 ) $ 1,694,741 $ 50,747 $ (2,299 ) 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, 2016 Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 24,980 $ — $ 24,980 $ (7,736 ) $ (4,784 ) $ 12,460 TBAs 8,300 — 8,300 (3,936 ) (4,364 ) — Total Assets $ 33,280 $ — $ 33,280 $ (11,672 ) $ (9,148 ) $ 12,460 Liabilities (2) Interest rate agreements $ (56,919 ) $ — $ (56,919 ) $ 7,736 $ 49,183 $ — TBAs (4,681 ) — (4,681 ) 3,936 — (745 ) Futures (928 ) — (928 ) — 928 — Loan warehouse debt (485,544 ) — (485,544 ) 485,544 — — Security repurchase agreements (305,995 ) — (305,995 ) 305,995 — — Total Liabilities $ (854,067 ) $ — $ (854,067 ) $ 803,211 $ 50,111 $ (745 ) (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, credit default index swaps, and futures are components of derivatives instruments on our consolidated balance sheets. Loan warehouse debt, which is secured by residential 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.

Summary of Significant Accoun33

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2017
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 December 31, 2017 and December 31, 2016 . 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 December 31, 2017 Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 10,164 $ — $ 10,164 $ (6,196 ) $ (42 ) $ 3,926 TBAs 133 — 133 (133 ) — — Futures 1 — 1 — — 1 Total Assets $ 10,298 $ — $ 10,298 $ (6,329 ) $ (42 ) $ 3,927 Liabilities (2) Interest rate agreements $ (55,567 ) $ — $ (55,567 ) $ 6,196 $ 49,371 $ — TBAs (3,808 ) — (3,808 ) 133 1,376 (2,299 ) Loan warehouse debt (1,039,666 ) — (1,039,666 ) 1,039,666 — — Security repurchase agreements (648,746 ) — (648,746 ) 648,746 — — Total Liabilities $ (1,747,787 ) $ — $ (1,747,787 ) $ 1,694,741 $ 50,747 $ (2,299 ) 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, 2016 Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 24,980 $ — $ 24,980 $ (7,736 ) $ (4,784 ) $ 12,460 TBAs 8,300 — 8,300 (3,936 ) (4,364 ) — Total Assets $ 33,280 $ — $ 33,280 $ (11,672 ) $ (9,148 ) $ 12,460 Liabilities (2) Interest rate agreements $ (56,919 ) $ — $ (56,919 ) $ 7,736 $ 49,183 $ — TBAs (4,681 ) — (4,681 ) 3,936 — (745 ) Futures (928 ) — (928 ) — 928 — Loan warehouse debt (485,544 ) — (485,544 ) 485,544 — — Security repurchase agreements (305,995 ) — (305,995 ) 305,995 — — Total Liabilities $ (854,067 ) $ — $ (854,067 ) $ 803,211 $ 50,111 $ (745 ) (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, credit default index swaps, and futures are components of derivatives instruments on our consolidated balance sheets. Loan warehouse debt, which is secured by residential 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)	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Variable Interest Entities	The following table presents a summary of the assets and liabilities of these VIEs. Table 4.1 – Assets and Liabilities of Consolidated VIEs December 31, 2017 Legacy Sequoia Sequoia Choice Total Consolidated VIEs (Dollars in Thousands) Residential loans, held-for-investment $ 632,817 $ 620,062 $ 1,252,879 Restricted cash 147 4 151 Accrued interest receivable 867 2,524 3,391 REO 3,353 — 3,353 Total Assets $ 637,184 $ 622,590 $ 1,259,774 Accrued interest payable $ 537 $ 2,031 $ 2,568 Accrued expenses and other liabilities — 4 4 Asset-backed securities issued 622,445 542,140 1,164,585 Total Liabilities $ 622,982 $ 544,175 $ 1,167,157 Number of VIEs 20 2 22 December 31, 2016 Legacy Sequoia Sequoia Choice Total Consolidated VIEs (Dollars in Thousands) Residential loans, held-for-investment $ 791,636 $ — $ 791,636 Restricted cash 148 — 148 Accrued interest receivable 1,000 — 1,000 REO 5,533 — 5,533 Total Assets $ 798,317 $ — $ 798,317 Accrued interest payable $ 518 $ — $ 518 Asset-backed securities issued 773,462 — 773,462 Total Liabilities $ 773,980 $ — $ 773,980 Number of VIEs 20 — 20
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 years ended December 31, 2017 and 2016 . Table 4.2 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Years Ended December 31, (In Thousands) 2017 2016 Principal balance of loans transferred $ 2,573,789 $ 1,036,584 Trading securities retained, at fair value 66,321 3,573 AFS securities retained, at fair value 13,341 5,554 MSRs recognized 7,123 6,451
Cash Flows Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table summarizes the cash flows during the years ended December 31, 2017 and 2016 between us and the unconsolidated VIEs sponsored by us and accounted for as sales since 2012. Table 4.3 – Cash Flows Related to Unconsolidated VIEs Sponsored by Redwood Years Ended December 31, (In Thousands) 2017 2016 Proceeds from new transfers $ 2,563,499 $ 1,057,688 MSR fees received 14,302 13,842 Funding of compensating interest, net (151 ) (338 ) Cash flows received on retained securities 27,156 30,191
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 for securitizations completed during 2017 and 2016 . Table 4.4 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Year Ended December 31, 2017 Year Ended December 31, 2016 At Date of Securitization MSRs Senior IO Securities Subordinate Securities MSRs Senior IO Securities Subordinate Securities Prepayment rates 9 % 10 % 10 % 21 % N/A 15 % Discount rates 11 % 14 % 5 % 11 % N/A 6 % Credit loss assumptions N/A 0.25 % 0.25 % N/A N/A 0.25 %
Unconsolidated Variable Interest Entity's Sponsored by Redwood Summary	The following table presents additional information at December 31, 2017 and December 31, 2016 , related to unconsolidated VIEs sponsored by Redwood and accounted for as sales since 2012. Table 4.5 – Unconsolidated VIEs Sponsored by Redwood (In Thousands) December 31, 2017 December 31, 2016 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 101,426 $ 41,909 Subordinate securities, classified as AFS 219,255 234,025 Mortgage servicing rights 60,980 58,800 Maximum loss exposure (1) $ 381,661 $ 334,734 Assets transferred: Principal balance of loans outstanding $ 8,364,148 $ 6,870,398 Principal balance of loans 30+ days delinquent 27,926 21,427 (1) Maximum loss exposure from our involvement with unconsolidated VIEs pertains to the carrying value of our securities and MSRs retained from these VIEs and represents estimated losses that would be incurred under severe, hypothetical circumstances, such as if the value of our interests and any associated collateral declines to zero. This does not include, for example, any potential exposure to representation and warranty claims associated with our initial transfer of loans into a securitization.
Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents key economic assumptions for assets retained from unconsolidated VIEs and the sensitivity of their fair values to immediate adverse changes in those assumptions at December 31, 2017 and December 31, 2016 . Table 4.6 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood December 31, 2017 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2017 $ 60,980 $ 33,773 $ 286,908 Expected life (in years) (2) 8 6 13 Prepayment speed assumption (annual CPR) (2) 9 % 10 % 11 % Decrease in fair value from: 10% adverse change $ 2,022 $ 1,371 $ 611 25% adverse change 4,839 3,289 1,506 Discount rate assumption (2) 11 % 11 % 5 % Decrease in fair value from: 100 basis point increase $ 2,386 $ 1,158 $ 25,827 200 basis point increase 4,597 2,265 47,885 Credit loss assumption (2) N/A 0.25 % 0.25 % Decrease in fair value from: 10% higher losses N/A $ — $ 1,551 25% higher losses N/A — 3,873 December 31, 2016 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2016 $ 58,800 $ 26,618 $ 249,317 Expected life (in years) (2) 7 6 12 Prepayment speed assumption (annual CPR) (2) 11 % 8 % 12 % Decrease in fair value from: 10% adverse change $ 2,226 $ 1,075 $ 997 25% adverse change 5,284 2,569 2,494 Discount rate assumption (2) 11 % 8 % 6 % Decrease in fair value from: 100 basis point increase $ 2,088 $ 1,105 $ 19,574 200 basis point increase 4,032 2,128 36,574 Credit loss assumption (2) N/A 0.25 % 0.25 % Decrease in fair value from: 10% higher losses N/A $ 19 $ 1,174 25% higher losses N/A 49 2,933 (1) Senior securities included $34 million and $27 million of interest-only securities at December 31, 2017 and December 31, 2016 , respectively. (2) Expected life, prepayment speed assumption, discount rate assumption, and credit loss assumption presented in the tables above represent weighted averages.
Loan Transfers Accounted for as Secured Borrowings	The following table presents a summary of our interests in third-party VIEs at December 31, 2017 , grouped by security type. Table 4.7 – Third-Party Sponsored VIE Summary (Dollars in Thousands) December 31, 2017 Mortgage-Backed Securities Senior $ 177,191 Re-REMIC 38,875 Subordinate 939,763 Total Investments in Third-Party Sponsored VIEs $ 1,155,829

Fair Value of Financial Instr35

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Carrying Values and Estimated Fair Values of Assets and Liabilities	The following table presents the carrying values and estimated fair values of assets and liabilities that are required to be recorded or disclosed at fair value at December 31, 2017 and December 31, 2016 . Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities December 31, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value (In Thousands) Assets Residential loans, held-for-sale At fair value $ 1,427,052 $ 1,427,052 $ 834,193 $ 834,193 At lower of cost or fair value 893 993 1,206 1,365 Residential loans, held-for-investment At fair value 3,687,265 3,687,265 3,052,652 3,052,652 Trading securities 968,844 968,844 445,687 445,687 Available-for-sale securities 507,666 507,666 572,752 572,752 MSRs 63,598 63,598 118,526 118,526 Cash and cash equivalents 144,663 144,663 212,844 212,844 Restricted cash 2,144 2,144 8,623 8,623 Accrued interest receivable 27,013 27,013 18,454 18,454 Derivative assets 15,718 15,718 36,595 36,595 REO (1) 3,354 3,806 5,533 5,560 Margin receivable (1) 85,044 85,044 68,038 68,038 FHLBC stock (1) 43,393 43,393 43,393 43,393 Guarantee asset (1) 2,869 2,869 4,092 4,092 Commercial loans (1) — — 2,700 2,700 Pledged collateral (1) 42,615 42,615 42,875 42,875 Liabilities Short-term debt facilities $ 1,688,412 $ 1,688,412 $ 791,539 $ 791,539 Accrued interest payable 18,435 18,435 9,608 9,608 Margin payable (2) 390 390 12,783 12,783 Guarantee obligation (2) 19,487 18,878 21,668 22,181 Derivative liabilities 63,081 63,081 66,329 66,329 ABS issued at fair value, net 1,164,585 1,164,585 773,462 773,462 FHLBC long-term borrowings 1,999,999 1,999,999 1,999,999 1,999,999 Convertible notes, net 686,759 692,369 482,195 493,365 Trust preferred securities and subordinated notes, net 138,535 103,230 138,489 96,255 (1) These assets are included in Other assets on our consolidated balance sheets. (2) These liabilities are included in Accrued expenses and other liabilities on our consolidated balance sheets.
Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table presents the assets and liabilities that are reported at fair value on our consolidated balance sheets on a recurring basis at December 31, 2017 and December 31, 2016 , as well as the fair value hierarchy of the valuation inputs used to measure fair value. Table 5.2 – Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2017 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 5,114,317 $ — $ — $ 5,114,317 Trading securities 968,844 — — 968,844 Available-for-sale securities 507,666 — — 507,666 Derivative assets 15,718 134 10,164 5,420 MSRs 63,598 — — 63,598 Pledged collateral 42,615 42,615 — — FHLBC stock 43,393 — 43,393 — Guarantee asset 2,869 — — 2,869 Liabilities Derivative liabilities $ 63,081 $ 3,808 $ 55,567 $ 3,706 ABS issued 1,164,585 — — 1,164,585 December 31, 2016 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 3,886,845 $ — $ — $ 3,886,845 Trading securities 445,687 — — 445,687 Available-for-sale securities 572,752 — — 572,752 Derivative assets 36,595 8,300 24,980 3,315 MSRs 118,526 — — 118,526 Pledged collateral 42,875 42,875 — — FHLBC stock 43,393 — 43,393 — Guarantee asset 4,092 — — 4,092 Liabilities Derivative liabilities $ 66,329 $ 5,609 $ 56,919 $ 3,801 ABS issued 773,462 — — 773,462
Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table presents additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2017 and 2016. Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets Liabilities Residential Loans Trading Securities AFS Securities MSRs Guarantee Asset Derivatives (1) ABS Issued (In Thousands) Beginning balance - December 31, 2016 $ 3,886,845 $ 445,687 $ 572,752 $ 118,526 $ 4,092 $ (486 ) $ 773,462 Acquisitions 5,741,427 640,760 39,700 8,026 — — 567,099 Sales (3,982,683 ) (137,886 ) (90,440 ) (52,788 ) — — — Principal paydowns (573,168 ) (19,224 ) (58,554 ) — — — (205,163 ) Gains (losses) in net income, net 46,119 39,507 31,892 (10,166 ) (1,223 ) 37,220 29,187 Unrealized losses in OCI, net — — 12,316 — — — — Other settlements, net (2) (4,223 ) — — — — (35,020 ) — Ending balance - December 31, 2017 $ 5,114,317 $ 968,844 $ 507,666 $ 63,598 $ 2,869 $ 1,714 $ 1,164,585 Assets Liabilities (In Thousands) Residential Loans Commercial Loans Trading Securities AFS Securities MSRs Guarantee Asset Derivatives (1) Commercial Secured Borrowings ABS Issued 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 4,747,564 37,625 292,875 34,520 25,362 — — — — Sales (3,813,538 ) (81,523 ) (244,219 ) (252,696 ) (62,440 ) — — — — Principal paydowns (806,081 ) (476 ) (17,827 ) (62,229 ) — — — (306 ) (208,215 ) Gains (losses) in net income, net (33,893 ) 2,791 10,847 48,399 (36,372 ) (1,605 ) 30,193 2,369 (8,275 ) Unrealized gains in OCI, net — — — (24,487 ) — — — — — Other settlements, net (2) (4,758 ) (65,215 ) — — — — (33,887 ) (65,215 ) (6,868 ) Ending balance - December 31, 2016 $ 3,886,845 $ — $ 445,687 $ 572,752 $ 118,526 $ 4,092 $ (486 ) $ — $ 773,462 (1) For the purpose of this presentation, derivative assets and liabilities, which consist of loan purchase and forward sale commitments, are presented on a net basis. (2) Other settlements, net for residential loans represents the transfer of loans to REO, and for derivatives, the transfer of the fair value of loan purchase commitments at the time loans are acquired to the basis of residential loans. For commercial secured borrowings and commercial loans, the reduction in 2016 represents the derecognition of our commercial secured borrowings and related commercial A-note investments upon sale of the associated B-notes.
Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held and Included in Net Income	The following table presents the portion of gains or losses included in our consolidated statements of income that were attributable to Level 3 assets and liabilities recorded at fair value on a recurring basis and held at December 31, 2017 , 2016 , and 2015 . Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the years ended December 31, 2017 , 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 December 31, 2017 , 2016 , and 2015 Included in Net Income Included in Net Income Years Ended December 31, (In Thousands) 2017 2016 2015 Assets Residential loans at Redwood $ 523 $ (17,370 ) $ (5,541 ) Residential loans at consolidated Sequoia entities 17,727 (14,391 ) 7,422 Commercial loans — — (2,620 ) Trading securities 28,612 7,184 (13,391 ) Available-for-sale securities (1,011 ) (368 ) (246 ) MSRs 1,277 42,964 (3,471 ) Loan purchase commitments 3,243 — 4,252 Loan forward sale commitments 2,177 — — Other assets - Guarantee asset (1,223 ) (1,605 ) (1,504 ) Liabilities Loan purchase commitments $ (3,706 ) $ (486 ) $ — Commercial secured borrowing — — 3,011 ABS issued (29,187 ) 8,275 (8,366 )
Assets and Liabilities Measured at Fair Value on Non-Recurring Basis	The following table presents information on assets recorded at fair value on a non-recurring basis at December 31, 2017 and December 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 sheets at December 31, 2017 and December 31, 2016 . Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Gain (Loss) for Year Ended December 31, 2017 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2017 Assets Residential loans, at lower of cost or fair value $ 854 $ — $ — $ 854 $ 22 REO 2,034 — — 2,034 (393 ) Gain (Loss) for Year Ended December 31, 2016 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2016 Assets Residential loans, at lower of cost or fair value $ 867 $ — $ — $ 867 $ (17 ) Commercial loans, at lower of cost or fair value 2,700 — — 2,700 (300 ) REO 5,207 — — 5,207 (1,831 )
Market Valuation Adjustments	The following table presents the net market valuation gains and losses recorded in each line item of our consolidated statements of income for the years ended December 31, 2017 , 2016 , and 2015 . Table 5.6 – Market Valuation Gains and Losses, Net Years Ended December 31, (In Thousands) 2017 2016 2015 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ 31,493 $ 5,786 $ 3,712 Residential loan purchase and forward sale commitments 37,880 25,613 50,234 Commercial loans, at fair value — 433 10,265 Sequoia securities — 1,455 (15,261 ) Risk management derivatives, net (17,529 ) 3,158 (42,468 ) Total mortgage banking activities, net (1) $ 51,844 $ 36,445 $ 6,482 Investment Fair Value Changes, Net Residential loans held-for-investment at Redwood $ (5,765 ) $ (23,102 ) $ (6,337 ) Trading securities 39,526 9,666 (2,019 ) Valuation adjustments on commercial loans held-for-sale 300 (307 ) — Net investments in Legacy Sequoia entities (2) (8,027 ) (4,200 ) (1,192 ) Net investments in Sequoia Choice entities (2) (323 ) — — Risk-sharing investments (1,484 ) (1,151 ) (1,886 ) Risk management derivatives, net (12,842 ) (9,112 ) (9,677 ) Impairments on AFS securities (1,011 ) (368 ) (246 ) Total investment fair value changes, net $ 10,374 $ (28,574 ) $ (21,357 ) MSR Income (Loss), Net MSRs $ (10,166 ) $ (36,372 ) $ (24,392 ) Risk management derivatives, net (568 ) 15,584 (12,708 ) Total MSR loss, net (3) $ (10,734 ) $ (20,788 ) $ (37,100 ) Total Market Valuation Gains (Losses), Net $ 51,484 $ (12,917 ) $ (51,975 ) (1) 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. (2) Includes changes in fair value of the residential loans held-for-investment, REO and the ABS issued at the entities, which netted together represent the change in value of our retained investments at the consolidated VIEs. (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.
Quantitative Information about Significant Unobservable Inputs Used in Valuation of Level 3 Assets and Liabilities Measured at Fair Value	The following table provides quantitative information about the significant unobservable inputs used in the valuation of our Level 3 assets and liabilities measured at fair value. Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments December 31, 2017 Fair Value Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average Assets Residential loans, at fair value: Jumbo fixed rate loans $ 3,372,329 Whole loan spread to TBA price $ 2.25 - $ 3.11 $ 3.09 Whole loan spread to swap rate 175 - 225 bps 224 bps Jumbo hybrid loans 251,847 Prepayment rate (annual CPR) 15 - 15 % 15 % Whole loan spread to swap rate 100 - 185 bps 159 bps Jumbo loans committed to sell 237,262 Whole loan committed sales price $ 100.78 - $ 103.01 $ 101.42 Loans held by Legacy Sequoia (1) 632,817 Liability price N/A N/A Loans held by Sequoia Choice (1) 620,062 Liability price N/A N/A Residential loans, at lower of cost or fair value 854 Loss severity 12 - 30 % 18 % Trading and AFS securities 1,476,510 Discount rate 3 - 15 % 5 % Prepayment rate (annual CPR) — - 50 % 10 % Default rate — - 27 % 3 % Loss severity — - 40 % 22 % MSRs 63,598 Discount rate 10 - 130 % 11 % Prepayment rate (annual CPR) 5 - 26 % 9 % Per loan annual cost to service $ 79 - $ 82 $ 82 Guarantee asset 2,869 Discount rate 11 - 11 % 11 % Prepayment rate (annual CPR) 13 - 13 % 13 % REO 2,034 Loss severity 6 - 42 % 21 % Liabilities Loan purchase commitments, net (2) 462 MSR multiple 1.7 - 5.1 x 3.6 x Pull-through rate 9 - 100 % 75 % Whole loan spread to TBA price $ 2.25 - $ 3.10 $ 3.06 Whole loan spread to swap rate - fixed rate 175 - 225 bps 225 bps Prepayment rate (annual CPR) 15 - 15 % 15 % Whole loan spread to swap rate - hybrid 100 - 185 bps 151 bps ABS issued (1) 1,164,585 Discount rate 3 - 15 % 4 % Prepayment rate (annual CPR) 8 - 25 % 17 % Default rate — - 16 % 3 % Loss severity 20 - 54 % 23 % (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)	12 Months Ended
	Dec. 31, 2017
Receivables [Abstract]
Summary of Classifications and Carrying Value of Loans	The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia entities at December 31, 2017 and December 31, 2016 . Table 6.1 – Classifications and Carrying Values of Residential Loans December 31, 2017 Legacy Sequoia (In Thousands) Redwood Sequoia Choice Total Held-for-sale At fair value $ 1,427,052 $ — $ — $ 1,427,052 At lower of cost or fair value 893 — — 893 Total held-for-sale 1,427,945 — — 1,427,945 Held-for-investment at fair value 2,434,386 632,817 620,062 3,687,265 Total Residential Loans $ 3,862,331 $ 632,817 $ 620,062 $ 5,115,210 December 31, 2016 Legacy Sequoia (In Thousands) Redwood Sequoia Choice Total Held-for-sale At fair value $ 834,193 $ — $ — $ 834,193 At lower of cost or fair value 1,206 — — 1,206 Total held-for-sale 835,399 — — 835,399 Held-for-investment at fair value 2,261,016 791,636 — 3,052,652 Total Residential Loans $ 3,096,415 $ 791,636 $ — $ 3,888,051
Geographic Concentration of Loans Recorded on Consolidated Balance Sheet	The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2017 and December 31, 2016. Table 6.2 – Geographic Concentration of Residential Loans December 31, 2017 Geographic Concentration Held-for-Sale Held-for- Held-for- Investment at Sequoia Choice Held-for- California 35 % 18 % 39 % 45 % Washington 9 % 2 % 7 % 5 % Texas 7 % 5 % 10 % 9 % Florida 4 % 13 % 4 % 5 % Georgia 2 % 5 % 3 % 1 % New York 2 % 9 % 3 % 4 % Other states (none greater than 5%) 41 % 48 % 34 % 31 % Total 100 % 100 % 100 % 100 % December 31, 2016 Geographic Concentration Held-for-Sale Held-for- Held-for- Held-for- California 40 % 18 % — % 42 % Texas 9 % 6 % — % 10 % Washington 8 % 2 % — % 4 % Florida 3 % 14 % — % 5 % Georgia 2 % 5 % — % 1 % New York 2 % 8 % — % 4 % Other states (none greater than 5%) 36 % 47 % — % 34 % Total 100 % 100 % — % 100 %
Loan Product Type and Accompanying Loan Characteristics of Loans	T he following table displays the loan product type and accompanying loan characteristics of residential loans recorded on our consolidated balance sheets at December 31, 2017 and December 31, 2016. Table 6.3 – Product Types and Characteristics of Residential Loans December 31, 2017 (In Thousands) Loan Balance Number of Loans Interest Rate (1) Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Held-for-Investment at Redwood: Hybrid ARM loans $ — to $250 7 3.50 % to 3.88% 2043-08 - 2044-01 $ 1,589 $ 438 $ — $ 251 to $500 43 2.63 % to 4.88% 2043-07 - 2047-10 16,703 566 — $ 501 to $750 87 2.88 % to 5.13% 2040-09 - 2047-11 55,709 1,226 — $ 751 to $1,000 82 2.88 % to 6.00% 2043-12 - 2047-11 71,819 984 — over $1,000 40 3.00 % to 5.00% 2040-10 - 2047-11 57,641 — — 259 203,461 3,214 — Fixed loans $ — to $250 34 3.13 % to 5.08% 2022-10 - 2046-02 6,758 — — $ 251 to $500 681 2.80 % to 6.13% 2028-02 - 2047-12 296,950 1,380 — $ 501 to $750 1,261 2.75 % to 6.75% 2027-09 - 2047-12 777,103 3,818 — $ 751 to $1,000 649 2.75 % to 5.00% 2027-07 - 2047-12 559,426 2,566 — over $1,000 408 2.80 % to 5.00% 2030-11 - 2048-01 564,295 — — 3,033 2,204,532 7,764 — Total HFI at Redwood: 3,292 $ 2,407,993 $ 10,978 $ — Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 2,324 1.25 % to 5.16% 2019-02 - 2035-11 $ 253,438 $ 7,436 $ 7,284 $ 251 to $500 541 1.00 % to 5.63% 2021-03 - 2036-05 189,360 9,082 9,178 $ 501 to $750 151 1.63 % to 4.00% 2024-05 - 2035-09 91,244 1,995 2,589 $ 751 to $1,000 76 1.38 % to 3.38% 2022-01 - 2035-07 65,276 1,790 1,725 over $1,000 53 1.00 % to 4.63% 2027-03 - 2036-05 83,393 — 4,040 3,145 682,711 20,303 24,816 Hybrid ARM loans: $ — to $250 4 3.25 % to 3.75% 2033-08 - 2034-06 530 — — $ 251 to $500 17 2.63 % to 3.75% 2033-07 - 2034-12 6,170 — — $ 501 to $750 11 3.38 % to 3.75% 2033-07 - 2034-11 7,091 — 641 over $1,000 1 3.75 % to 3.75% 2033-09 - 2033-09 1,420 — — 33 15,211 — 641 Total HFI at Legacy Sequoia: 3,178 $ 697,922 $ 20,303 $ 25,457 Held-for-Investment at Sequoia Choice: Fixed loans: $ 0 to $250 4 2.75 % to 4.75% 2043-05 - 2047-07 $ 641 $ — $ — $ 251 to $500 85 3.13 % to 5.75% 2042-11 - 2047-10 38,900 486 — $ 501 to $750 388 3.13 % to 6.25% 2037-02 - 2047-11 240,538 672 — $ 751 to $1,000 239 3.25 % to 6.50% 2043-05 - 2047-10 210,235 — — over $1,000 90 3.13 % to 5.88% 2045-01 - 2047-10 114,433 — — Total HFI at Sequoia Choice: 806 $ 604,747 $ 1,158 $ — Held-for-Sale: ARM loans $ 58 to $290 3 1.50 % to 3.00% 2032-11 - 2033-10 $ 444 $ — $ — Hybrid ARM loans $ 443 to $2,000 93 2.88 % to 4.00% 2044-08 - 2048-01 78,884 — — Fixed loans $ 132 to $1,950 1,917 2.88 % to 6.25% 2029-05 - 2048-01 1,329,851 1,913 459 Total Held-for-Sale 2,013 $ 1,409,179 $ 1,913 $ 459 December 31, 2016 (In Thousands) Loan Balance Number of Loans Interest Rate (1) Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Held-for-Investment at Redwood: Hybrid ARM loans $ 251 to $500 1 3.63 % to 3.63% 2044-07 - 2044-07 $ 264 $ — $ — $ 501 to $750 4 2.88 % to 4.65% 2040-09 - 2045-10 2,722 — — $ 751 to $1,000 2 3.50 % to 4.00% 2045-09 - 2045-10 1,726 — — over $1,000 4 3.00 % to 4.20% 2040-10 - 2045-10 5,545 — — 11 10,257 — — Fixed loans $ — to $250 26 3.67 % to 5.08% 2039-04 - 2045-10 4,643 — 237 $ 251 to $500 633 2.80 % to 5.13% 2028-02 - 2046-12 278,560 264 — $ 501 to $750 1,306 2.75 % to 6.25% 2027-09 - 2046-12 807,714 2,803 — $ 751 to $1,000 690 2.75 % to 5.63% 2027-07 - 2046-12 597,002 — — over $1,000 402 2.80 % to 5.00% 2027-04 - 2047-01 535,621 1,232 — 3,057 2,223,540 4,299 237 Total HFI at Redwood: 3,068 $ 2,233,797 $ 4,299 $ 237 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 2,623 0.63 % to 5.60% 2019-02 - 2035-11 $ 297,646 $ 9,158 $ 7,410 $ 251 to $500 694 0.25 % to 5.75% 2019-12 - 2036-05 241,253 9,177 10,059 $ 501 to $750 203 0.88 % to 3.89% 2024-05 - 2035-09 121,919 5,812 5,069 $ 751 to $1,000 100 0.63 % to 3.00% 2022-01 - 2035-07 86,988 2,750 3,322 over $1,000 78 0.25 % to 3.75% 2027-03 - 2036-05 121,484 4,790 4,306 3,698 869,290 31,687 30,166 Hybrid ARM loans: $ — to $250 4 3.00 % to 3.00% 2033-09 - 2034-06 453 — — $ 251 to $500 18 2.63 % to 3.13% 2033-07 - 2034-12 6,516 — — $ 501 to $750 13 2.75 % to 3.13% 2033-07 - 2034-12 8,483 669 — $ 751 to $1,000 1 3.13 % to 3.13% 2033-08 - 2033-08 751 — — over $1,000 1 3.00 % to 3.00% 2033-09 - 2033-09 1,488 — — 37 17,691 669 — Total HFI at Legacy Sequoia: 3,735 $ 886,981 $ 32,356 $ 30,166 Held-for-Sale: ARM loans $ 61 to $396 6 1.88 % to 2.75% 2033-10 - 2032-11 $ 882 $ — $ 300 Hybrid ARM loans $ 2 to $1,947 173 2.50 % to 6.00% 2037-06 - 2047-01 144,174 — — Fixed loans $ 404 to $1,997 942 2.99 % to 6.25% 2026-12 - 2047-01 688,329 — — Total Held-for-Sale 1,121 $ 833,385 $ — $ 300 (1) Rate is net of servicing fee for consolidated loans for which we do not own the MSR.

Real Estate Securities (Tables)

Real Estate Securities (Tables)	12 Months Ended
	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Fair Values of Real Estate Securities by Collateral Type and Entity	The following table presents the fair values of our real estate securities by type at December 31, 2017 and December 31, 2016 . Table 7.1 – Fair Values of Real Estate Securities by Type (In Thousands) December 31, 2017 December 31, 2016 Trading $ 968,844 $ 445,687 Available-for-sale 507,666 572,752 Total Real Estate Securities $ 1,476,510 $ 1,018,439
Trading Securities by Collateral Type	The following table presents the fair value of trading securities by position and collateral type at December 31, 2017 and December 31, 2016 . Table 7.2 – Trading Securities by Position and Collateral Type (In Thousands) December 31, 2017 December 31, 2016 Senior Securities $ 69,975 $ 37,067 Subordinate Securities Mezzanine 563,474 256,226 Subordinate 335,395 152,394 Total Subordinate Securities 898,869 408,620 Total Trading Securities $ 968,844 $ 445,687
Available for Sale Securities by Collateral Type	The following table presents the fair value of our available-for-sale securities by position and collateral type at December 31, 2017 and December 31, 2016 . Table 7.3 – Available-for-Sale Securities by Position and Collateral Type (In Thousands) December 31, 2017 December 31, 2016 Senior Securities $ 140,989 $ 136,546 Re-REMIC Securities 38,875 85,479 Subordinate Securities Mezzanine 92,002 163,715 Subordinate 235,800 187,012 Total Subordinate Securities 327,802 350,727 Total AFS Securities $ 507,666 $ 572,752
Components of Carrying Value (Which Equals Fair Value) of Residential Available for Sale Securities	The following table presents the components of carrying value (which equals fair value) of AFS securities at December 31, 2017 and December 31, 2016 . Table 7.4 – Carrying Value of AFS Securities December 31, 2017 (In Thousands) Senior Re-REMIC Subordinate Total Principal balance $ 144,512 $ 44,613 $ 419,020 $ 608,145 Credit reserve (2,936 ) (5,820 ) (37,793 ) (46,549 ) Unamortized discount, net (34,379 ) (9,662 ) (139,712 ) (183,753 ) Amortized cost 107,197 29,131 241,515 377,843 Gross unrealized gains 35,027 9,744 86,419 131,190 Gross unrealized losses (1,235 ) — (132 ) (1,367 ) Carrying Value $ 140,989 $ 38,875 $ 327,802 $ 507,666 December 31, 2016 (In Thousands) Senior Re-REMIC Subordinate Total Principal balance $ 148,862 $ 95,608 $ 456,359 $ 700,829 Credit reserve (4,814 ) (6,857 ) (35,802 ) (47,473 ) Unamortized discount, net (41,877 ) (19,613 ) (136,622 ) (198,112 ) Amortized cost 102,171 69,138 283,935 455,244 Gross unrealized gains 36,304 16,341 68,032 120,677 Gross unrealized losses (1,929 ) — (1,240 ) (3,169 ) Carrying Value $ 136,546 $ 85,479 $ 350,727 $ 572,752
Changes of Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities	The following table presents the changes for the years ended December 31, 2017 and 2016 , in unamortized discount and designated credit reserves on residential AFS securities. Table 7.5 – Changes in Unamortized Discount and Designated Credit Reserves on AFS Securities Year Ended December 31, 2017 Year Ended December 31, 2016 Credit Unamortized Credit Unamortized (In Thousands) Beginning balance $ 47,473 $ 198,112 $ 48,869 $ 237,107 Amortization of net discount — (18,795 ) — (26,253 ) Realized credit losses (4,187 ) — (5,830 ) — Acquisitions 9,118 13,080 9,311 11,461 Sales, calls, other (3,404 ) (12,106 ) (4,968 ) (24,480 ) Impairments 1,011 — 368 — Transfers to (release of) credit reserves, net (3,462 ) 3,462 (277 ) 277 Ending Balance $ 46,549 $ 183,753 $ 47,473 $ 198,112
Components of Carrying Value of Available for Sale Securities in Unrealized Loss Position	The following table presents the components comprising the total carrying value of residential AFS securities that were in a gross unrealized loss position at December 31, 2017 and December 31, 2016 . Table 7.6 – 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 Amortized Cost Unrealized Losses Fair (In Thousands) December 31, 2017 $ 8,637 $ (132 ) $ 8,505 $ 28,557 $ (1,235 ) $ 27,322 December 31, 2016 15,772 (330 ) 15,442 60,035 (2,839 ) 57,196
Summary of Significant Valuation Assumptions for Available for Sale Securities	The table below summarizes the significant valuation assumptions we used for our AFS securities in unrealized loss positions at December 31, 2017 . Table 7.7 – Significant Valuation Assumptions December 31, 2017 Range for Securities Prepayment rates 8 % - 20% Projected losses 0.22 % - 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 December 31, 2017 , 2016 , and 2015 for which a portion of an OTTI was recognized in other comprehensive income. Table 7.8 – Activity of the Credit Component of Other-than-Temporary Impairments Years Ended December 31, (In Thousands) 2017 2016 2015 Balance at beginning of period $ 28,261 $ 28,277 $ 33,849 Additions Initial credit impairments 178 346 246 Subsequent credit impairments 47 8 — Reductions Securities sold, or expected to sell (4,898 ) (261 ) (4,567 ) Securities with no outstanding principal at period end (2,551 ) (109 ) (1,251 ) Balance at End of Period $ 21,037 $ 28,261 $ 28,277
Gross Realized Gains and Losses on Sales and Calls of Available for Sale Securities	The following table presents the gross realized gains and losses on sales and calls of AFS securities for the year s ended December 31, 2017 , 2016 , and 2015 . Table 7.9 – Gross Realized Gains and Losses on AFS Securities Years Ended December 31, (In Thousands) 2017 2016 2015 Gross realized gains - sales $ 13,927 $ 23,598 $ 34,922 Gross realized gains - calls 677 1,210 2,167 Gross realized losses - sales — (2,293 ) (608 ) Gross realized losses - calls (497 ) — (112 ) Total Realized Gains on Sales and Calls of AFS Securities, net $ 14,107 $ 22,515 $ 36,369

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	12 Months Ended
	Dec. 31, 2017
Transfers and Servicing [Abstract]
Schedule of Fair Value of MSRs and Aggregate Principal Amounts of Associated Loans	The following table presents the fair value of MSRs and the aggregate principal amounts of associated loans as of December 31, 2017 and December 31, 2016 . Table 8.1 – Fair Value of MSRs and Aggregate Principal Amounts of Associated Loans December 31, 2017 December 31, 2016 (In Thousands) MSR Fair Value Associated Principal MSR Fair Value Associated Principal Mortgage Servicing Rights Conforming Loans $ 1,194 $ 107,416 $ 58,523 $ 4,989,720 Jumbo Loans 62,404 5,449,239 60,003 5,467,169 Total Mortgage Servicing Rights $ 63,598 $ 5,556,655 $ 118,526 $ 10,456,889
Activity for Residential First-Lien Mortgage Servicing Rights	The following table presents activity for MSRs for the years ended December 31, 2017 , 2016 , and 2015 . Table 8.2 – Activity for MSRs Years Ended December 31, (In Thousands) 2017 2016 2015 Balance at beginning of period $ 118,526 $ 191,976 $ 139,293 Additions 8,026 25,362 95,281 Sales (52,788 ) (62,440 ) (18,206 ) Changes in fair value due to: Changes in assumptions (1) (1,088 ) (14,512 ) (5,453 ) Other changes (2) (9,078 ) (21,860 ) (18,939 ) Balance at End of Period $ 63,598 $ 118,526 $ 191,976 (1) Primarily reflects changes in prepayment assumptions due to changes in market interest rates. (2) Represents changes due to the realization of expected cash flows.
Details of Retention and Purchase of MSRs	The following table details the retention and purchase of MSRs during the years ended December 31, 2017 and 2016 . Table 8.3 – MSR Additions Years Ended December 31, 2017 2016 (In Thousands) MSR Fair Value Associated Principal MSR Fair Value Associated Principal Jumbo MSR additions: From securitization $ 7,123 $ 654,605 $ 6,451 $ 939,861 From loan sales 263 31,658 177 26,844 Total jumbo MSR additions 7,386 686,263 6,628 966,705 Conforming MSR additions: From loan sales — — 3,380 316,290 From purchases 640 106,108 15,354 1,643,577 Total conforming MSR additions 640 106,108 18,734 1,959,867 Total MSR Additions $ 8,026 $ 792,371 $ 25,362 $ 2,926,572
Income from Mortgage Servicing Rights, Net	The following table presents the components of our MSR income for the years ended December 31, 2017 , 2016 , and 2015 . Table 8.4 – Components of MSR Income (Loss), net Years Ended December 31, (In Thousands) 2017 2016 2015 Servicing income $ 21,120 $ 41,152 $ 38,964 Cost of sub-servicer (2,828 ) (6,281 ) (5,079 ) Net servicing fee income 18,292 34,871 33,885 Market valuation changes of MSRs (10,166 ) (36,372 ) (24,392 ) Market valuation changes of associated derivatives (1) (568 ) 15,584 (12,708 ) MSR reversal of provision for repurchases 302 270 (707 ) MSR Income (Loss), Net $ 7,860 $ 14,353 $ (3,922 ) (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.

Derivative Financial Instrume39

Derivative Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Aggregate Fair Value and Notional Amount of Derivative Financial Instruments	The following table presents the fair value and notional amount of our derivative financial instruments at December 31, 2017 and December 31, 2016 . Table 9.1 – Fair Value and Notional Amount of Derivative Financial Instruments December 31, 2017 December 31, 2016 Fair Value Notional Amount Fair Value Notional Amount (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 10,122 $ 1,765,000 $ 19,859 $ 1,009,000 TBAs 133 295,000 8,300 850,000 Futures 1 7,500 — — Swaptions 42 200,000 5,121 345,000 Assets - Other Derivatives Loan purchase commitments 3,243 547,434 3,315 352,981 Loan forward sale commitments 2,177 343,681 — — Total Assets $ 15,718 $ 3,158,615 $ 36,595 $ 2,556,981 Liabilities - Cash Flow Hedges Interest rate swaps $ (43,679 ) $ 139,500 $ (44,822 ) $ 139,500 Liabilities - Risk Management Derivatives Interest rate swaps (11,888 ) 1,248,000 (12,097 ) 1,101,500 TBAs (3,808 ) 1,400,000 (4,681 ) 510,000 Futures — — (928 ) 87,500 Liabilities - Other Derivatives Loan purchase commitments (3,706 ) 697,966 (3,801 ) 584,862 Total Liabilities $ (63,081 ) $ 3,485,466 $ (66,329 ) $ 2,423,362 Total Derivative Financial Instruments, Net $ (47,363 ) $ 6,644,081 $ (29,734 ) $ 4,980,343
Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges	The following table illustrates the impact on interest expense of our interest rate agreements accounted for as cash flow hedges for the years ended December 31, 2017 , 2016 , and 2015 . Table 9.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Years Ended December 31, (In Thousands) 2017 2016 2015 Net interest expense on cash flows hedges $ (4,602 ) $ (5,317 ) $ (5,883 ) Realized net losses reclassified from other comprehensive income (45 ) (72 ) (95 ) Total Interest Expense $ (4,647 ) $ (5,389 ) $ (5,978 )

Other Assets and Liabilities (T

Other Assets and Liabilities (Tables)	12 Months Ended
	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Summary of Other Assets	Other assets at December 31, 2017 and December 31, 2016 , are summarized in the following table. Table 10.1 – Components of Other Assets (In Thousands) December 31, 2017 December 31, 2016 Margin receivable $ 85,044 $ 68,038 FHLBC stock 43,393 43,393 Pledged collateral 42,615 42,875 MSR holdback receivable 8,141 1,862 REO 3,354 5,533 Guarantee asset 2,869 4,092 Fixed assets and leasehold improvements (1) 2,645 2,750 Commercial loans — 2,700 Other 6,905 10,702 Total Other Assets $ 194,966 $ 181,945 (1) Fixed assets and leasehold improvements had a basis of $6 million and accumulated depreciation of $4 million at December 31, 2017 .
Summary of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities at December 31, 2017 and December 31, 2016 are summarized in the following table. Table 10.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) December 31, 2017 December 31, 2016 Accrued compensation $ 24,025 $ 18,830 Guarantee obligations 19,487 21,668 Deferred tax liabilities 11,764 898 Residential loan and MSR repurchase reserve 4,916 5,432 Legal reserve 2,000 2,000 Accrued operating expenses 1,481 4,493 Current accounts payable 1,339 1,151 Margin payable 390 12,783 Restructuring liabilities — 2,297 Other 2,327 2,876 Total Other Liabilities $ 67,729 $ 72,428

Short-Term Debt (Tables)

Short-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Outstanding Balances of Short-Term Debt by Type of Collateral Securing Debt	The table below summarizes our short-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at December 31, 2017 and December 31, 2016 . Table 11.1 – Short-Term Debt December 31, 2017 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate Maturity Weighted Average Days Until Maturity Facilities Residential loan warehouse 4 $ 1,039,666 $ 1,575,000 3.17 % 1/2018-12/2018 197 Real estate securities repo 9 648,746 — 2.69 % 1/2018-3/2018 28 Total Short-Term Debt Facilities 13 1,688,412 Convertible notes, net N/A 250,270 — 4.63 % 4/2018 105 Total Short-Term Debt $ 1,938,682 December 31, 2016 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate Maturity Weighted Average Days Until Maturity Facilities Residential loan warehouse 4 $ 485,544 $ 1,325,000 2.40 % 1/2017-12/2017 206 Real estate securities repo 7 305,995 — 1.91 % 1/2017-3/2017 24 Total Short-Term Debt 11 $ 791,539
Remaining Maturities of Short Term Debt	The following table presents the remaining maturities of our secured short-term debt by the type of collateral securing the debt as well as our convertible notes at December 31, 2017 . Table 11.2 – Short-Term Debt by Collateral Type and Remaining Maturities December 31, 2017 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for sale residential loans $ 150,095 $ 320,024 $ 569,547 $ 1,039,666 Real estate securities 517,847 130,899 — 648,746 Total Secured Short-Term Debt 667,942 450,923 569,547 1,688,412 Convertible notes, net — — 250,270 250,270 Total Short-Term Debt $ 667,942 $ 450,923 $ 819,817 $ 1,938,682

Asset-Backed Securities Issued

Asset-Backed Securities Issued (Tables)	12 Months Ended
	Dec. 31, 2017
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 Sequoia securitization entities we sponsored at December 31, 2017 and December 31, 2016 , along with other selected information, are summarized in the following table. Table 12.1 – Asset-Backed Securities Issued December 31, 2017 December 31, 2016 (Dollars in Thousands) Legacy Sequoia Sequoia Choice Total Legacy Sequoia Sequoia Total Certificates with principal balance $ 691,125 $ 526,657 $ 1,217,782 $ 880,517 $ — $ 880,517 Interest-only certificates 1,972 7,695 9,667 3,774 — 3,774 Market valuation adjustments (70,652 ) 7,788 (62,864 ) (110,829 ) — (110,829 ) ABS Issued, Net $ 622,445 $ 542,140 $ 1,164,585 $ 773,462 $ — $ 773,462 Range of weighted average interest rates, by series 1.46% to 2.78% 4.52% to 4.73% 0.74% to 2.23% — % Stated maturities 2024 - 2036 2047 2024 - 2036 N/A Number of series 20 2 20 —
Summary of Carrying Value Components of Collateral for ABS Issued and Outstanding	The following table summarizes the carrying value components of the collateral for ABS issued and outstanding at December 31, 2017 and December 31, 2016 . Table 12.2 – Collateral for Asset-Backed Securities Issued December 31, 2017 December 31, 2016 (In Thousands) Legacy Sequoia Sequoia Choice Total Legacy Sequoia Sequoia Total Residential loans $ 632,817 $ 620,062 $ 1,252,879 $ 791,636 $ — $ 791,636 Restricted cash 147 4 151 148 — 148 Accrued interest receivable 867 2,524 3,391 1,000 — 1,000 REO 3,353 — 3,353 5,533 — 5,533 Total Collateral for ABS Issued $ 637,184 $ 622,590 $ 1,259,774 $ 798,317 $ — $ 798,317

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt	The following table presents maturities of our FHLBC borrowings by year at December 31, 2017 . Table 13.1 – Maturities of FHLBC Borrowings by Year (In Thousands) December 31, 2017 2024 $ 470,171 2025 887,639 2026 642,189 Total FHLBC Borrowings $ 1,999,999

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Future Lease Commitments	The following table presents our future lease commitments at December 31, 2017 . Table 14.1 – Future Lease Commitments by Year (In Thousands) December 31, 2017 2018 $ 1,948 2019 1,987 2020 1,965 2021 and thereafter 11,691 Total Lease Commitments $ 17,591

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Changes to Accumulated Other Comprehensive Income (Loss) by Component	The following table provides a summary of changes to accumulated other comprehensive income by component for the years ended December 31, 2017 and 2016 . Table 15.1 – Changes in Accumulated Other Comprehensive Income by Component Years Ended December 31, 2017 2016 (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 $ 115,873 $ (44,020 ) $ 139,356 $ (47,363 ) Other comprehensive income (loss) (1) 22,864 1,022 (2,316 ) 3,271 Amounts reclassified from other (10,536 ) 45 (21,167 ) 72 Net current-period other comprehensive income (loss) 12,328 1,067 (23,483 ) 3,343 Balance at End of Period $ 128,201 $ (42,953 ) $ 115,873 $ (44,020 ) (1) Amounts presented for net unrealized gains (losses) on available-for-sale securities are net of tax benefit (provision) of zero and $1 million for the years ended December 31, 2017 and 2016 , respectively.
Reclassifications out of Accumulated Other Comprehensive Income (Loss)	The following table provides a summary of reclassifications out of accumulated other comprehensive income for the years ended December 31, 2017 and 2016 . Table 15.2 – Reclassifications Out of Accumulated Other Comprehensive Income Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Years Ended December 31, (In Thousands) Income Statement 2017 2016 Net Realized (Gain) Loss on AFS Securities Other than temporary impairment (1) Investment fair value changes, net $ 1,012 $ 368 Gain on sale of AFS securities Realized gains, net (11,548 ) (21,535 ) $ (10,536 ) $ (21,167 ) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 45 $ 72 $ 45 $ 72 (1) For the year ended December 31, 2017 , other-than-temporary impairments were $1 million , of which $1 million were recognized through our consolidated statements of income and $0.4 million were recognized in Accumulated other comprehensive income, a component of our consolidated balance sheet. For the year ended December 31, 2016 , other-than-temporary impairments were $3 million , of which $0.4 million were recognized through our consolidated statements of income, and $3 million were recognized in Accumulated other comprehensive income, a component of our consolidated balance sheet.
Basic and Diluted Earnings (Loss) Per Common Share	The following table provides the basic and diluted earnings per common share computations for the years ended December 31, 2017 , 2016 , and 2015 . Table 15.3 – Basic and Diluted Earnings per Common Share Years Ended December 31, (In Thousands, except Share Data) 2017 2016 2015 Basic Earnings per Common Share: Net income attributable to Redwood $ 140,406 $ 131,252 $ 102,088 Less: Dividends and undistributed earnings allocated to participating securities (3,632 ) (3,742 ) (2,806 ) Net income allocated to common shareholders $ 136,774 $ 127,510 $ 99,282 Basic weighted average common shares outstanding 76,792,957 76,747,047 82,945,103 Basic Earnings per Common Share $ 1.78 $ 1.66 $ 1.20 Diluted Earnings per Common Share: Net income attributable to Redwood $ 140,406 $ 131,252 $ 102,088 Less: Dividends and undistributed earnings allocated to participating securities (3,836 ) (4,035 ) (2,677 ) Add back: Interest expense on convertible notes for the period, net of tax 26,898 23,862 — Net income allocated to common shareholders $ 163,468 $ 151,079 $ 99,411 Weighted average common shares outstanding 76,792,957 76,747,047 82,945,103 Net effect of dilutive equity awards 185,383 28,435 1,573,292 Net effect of assumed convertible notes conversion to common shares 24,996,668 21,133,608 — Diluted weighted average common shares outstanding 101,975,008 97,909,090 84,518,395 Diluted Earnings per Common Share $ 1.60 $ 1.54 $ 1.18

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	12 Months Ended
	Dec. 31, 2017
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 $21 million at December 31, 2017 , as shown in the following table. Table 16.1 – Activities of Equity Compensation Costs by Award Type Year Ended December 31, 2017 (In Thousands) Restricted Stock Deferred Stock Units Performance Stock Units Employee Stock Purchase Plan Total Unrecognized compensation cost at beginning of period $ 2,091 $ 11,506 $ 4,549 $ — $ 18,146 Equity grants 2,247 8,797 3,050 129 14,223 Equity grant forfeitures (286 ) (472 ) — — (758 ) Equity compensation expense (1,244 ) (6,467 ) (2,301 ) (129 ) (10,141 ) Unrecognized Compensation Cost at End of Period $ 2,808 $ 13,364 $ 5,298 $ — $ 21,470
Restricted Stock Outstanding	The following table summarizes the activities related to restricted stock for the years ended December 31, 2017 , 2016 , and 2015 . Table 16.2 – Restricted Stock Activities Years Ended December 31, 2017 2016 2015 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of period 204,515 $ 14.27 187,180 $ 18.22 109,464 $ 15.97 Granted 134,364 16.52 144,056 11.89 141,069 19.03 Vested (61,928 ) 14.97 (50,107 ) 17.28 (42,675 ) 14.87 Forfeited (19,444 ) 14.78 (76,614 ) 18.01 (20,678 ) 18.74 Outstanding at End of Period 257,507 $ 15.23 204,515 $ 14.27 187,180 $ 18.22
Deferred Stock Units Activity	The following table summarizes the activities related to DSUs for the years ended December 31, 2017 , 2016 , and 2015 . Table 16.3 – Deferred Stock Units Activities Years Ended December 31, 2017 2016 2015 Units Weighted Units Weighted Units Weighted Outstanding at beginning of period 1,848,862 $ 16.46 2,407,154 $ 16.45 2,168,824 $ 16.20 Granted 565,921 16.01 565,061 13.33 583,958 16.11 Distributions (504,417 ) 18.09 (1,060,459 ) 14.64 (335,461 ) 14.20 Forfeitures (31,875 ) 14.80 (62,894 ) 18.66 (10,167 ) 16.60 Balance at End of Period 1,878,491 $ 15.92 1,848,862 $ 16.46 2,407,154 $ 16.45
Summary of Activity Related to ESPP	The following table summarizes the activities related to the ESPP for the years ended December 31, 2017 , 2016 , and 2015 . Table 16.4 – Employee Stock Purchase Plan Activities Years Ended December 31, (In Thousands) 2017 2016 2015 Balance at beginning of period $ 3 $ 18 $ 3 Employee purchases 305 290 475 Cost of common stock issued (304 ) (305 ) (460 ) Balance at End of Period $ 4 $ 3 $ 18
Summary of Activity Related to Executive Deferred Compensation Plan	The following table summarizes the cash account activities related to the EDCP for the years ended December 31, 2017 , 2016 , and 2015 . Table 16.5 – EDCP Cash Accounts Activities Years Ended December 31, (In Thousands) 2017 2016 2015 Balance at beginning of period $ 2,088 $ 2,095 $ 2,049 New deferrals 750 558 600 Accrued interest 58 53 61 Withdrawals (725 ) (618 ) (615 ) Balance at End of Period $ 2,171 $ 2,088 $ 2,095

Mortgage Banking Activities, 47

Mortgage Banking Activities, Net (Tables)	12 Months Ended
	Dec. 31, 2017
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 years ended December 31, 2017 , 2016 , and 2015 . Table 17.1 – Mortgage Banking Activities Years Ended December 31, (In Thousands) 2017 2016 2015 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ 69,373 $ 31,399 $ 53,946 Sequoia securities — 1,455 (15,261 ) Risk management derivatives (2) (17,529 ) 5,696 (34,457 ) Other income (expense), net (3) 2,064 2,203 4,040 Total residential mortgage banking activities, net 53,908 40,753 8,268 Commercial Mortgage Banking Activities, Net — (2,062 ) 2,704 Mortgage Banking Activities, Net $ 53,908 $ 38,691 $ 10,972 (1) Includes changes in fair value for associated loan purchase and forward sale commitments. (2) Represents market valuation changes of derivatives that were used to manage risks associated with our accumulation of residential loans. (3) Amounts in this line item include other fee income from loan acquisitions and the provision for repurchases expense, presented net.

Investment Fair Value Changes48

Investment Fair Value Changes, Net (Tables)	12 Months Ended
	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Investments Fair Value Changes	The following table presents the components of Investment fair value changes, net, recorded in our consolidated statements of income for the years ended December 31, 2017 , 2016 and 2015 . Table 18.1 – Investment Fair Value Changes Years Ended December 31, (In Thousands) 2017 2016 2015 Investment Fair Value Changes, Net Changes in fair value of: Residential loans held-for-investment, at Redwood $ (5,765 ) $ (23,102 ) $ (6,337 ) Trading securities 39,526 9,666 (2,019 ) Net investments in Legacy Sequoia entities (1) (8,027 ) (4,200 ) (1,192 ) Net investments in Sequoia Choice entities (1) (323 ) — — Risk-sharing investments (1,484 ) (1,151 ) (1,886 ) Risk management derivatives, net (12,842 ) (9,112 ) (9,677 ) Valuation adjustments on commercial loans held-for-sale 300 (307 ) — Impairments on AFS securities (1,011 ) (368 ) (246 ) Investment Fair Value Changes, Net $ 10,374 $ (28,574 ) $ (21,357 ) (1) Includes changes in fair value of the residential loans held-for-sale, REO and the ABS issued at the entities, which netted together represent the change in value of our retained investments at the consolidated VIEs.

Operating Expenses (Tables)

Operating Expenses (Tables)	12 Months Ended
	Dec. 31, 2017
Other Income and Expenses [Abstract]
Components of Operating Expenses	Components of our operating expenses for the years ended December 31, 2017 , 2016 and 2015 are presented in the following table. Table 19.1 – Components of Operating Expenses Years Ended December 31, (In Thousands) 2017 2016 2015 Fixed compensation expense $ 22,111 $ 24,332 $ 35,093 Variable compensation expense (1) 20,574 16,581 12,606 Equity compensation expense 10,141 9,093 11,921 Total compensation expense 52,826 50,006 59,620 Systems and consulting 7,073 9,037 10,212 Loan acquisition costs (2) 5,022 5,744 10,326 Office costs 4,248 4,550 5,270 Accounting and legal 2,842 3,658 4,837 Corporate costs 1,856 2,106 2,049 Other operating expenses 3,289 3,284 5,102 Operating expenses before restructuring charges 77,156 78,385 97,416 Restructuring charges (3) — 10,401 — Total Operating Expenses $ 77,156 $ 88,786 $ 97,416 (1) Variable compensation expense in 2017 includes $2 million of costs associated with the hiring of a new executive officer. (2) Loan acquisition costs primarily includes underwriting and due diligence costs related to the acquisition of residential loans held-for-sale at fair value. (3) For the year ended December 31, 2016, restructuring charges included $5 million of fixed compensation expense and $3 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 10 for further discussion on restructuring charges.

Taxes (Tables)

Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Components of Net Deferred Tax Assets	Components of our net deferred tax assets at December 31, 2017 and December 31, 2016 are presented in the following table. Table 20.1 – Deferred Tax Assets (Liabilities) (In Thousands) December 31, 2017 December 31, 2016 Deferred Tax Assets Net operating loss carryforward – state $ 108,085 $ 89,350 Net capital loss carryforward – state — 15,346 Net operating loss carryforward – federal — 9,537 Net capital loss carryforward – federal 535 2,283 Real estate assets — 5,601 Interest rate agreements 1,380 — Allowances and accruals 2,044 3,059 Other 1,844 2,192 Total Deferred Tax Assets 113,888 127,368 Deferred Tax Liabilities Real estate assets (562 ) — Mortgage Servicing Rights (20,540 ) (22,531 ) Interest rate agreements — (2,167 ) Tax effect of unrealized gains – OCI (1,166 ) (1,636 ) Total Deferred Tax Liabilities (22,268 ) (26,334 ) Valuation allowance (103,384 ) (101,932 ) Total Deferred Tax Asset (Liability), net of Valuation Allowance $ (11,764 ) $ (898 )
Provision for Income Taxes	The following table summarizes the provision for income taxes for the years ended December 31, 2017 , 2016 , and 2015 . Table 20.2 – Provision for Income Taxes Years Ended December 31, (In Thousands) 2017 2016 2015 Current Provision for Income Taxes Federal $ 512 $ 1,477 $ 144 State 361 331 167 Total Current Provision for Income Taxes 873 1,808 311 Deferred Provision for Income Taxes Federal 10,991 1,910 (10,198 ) State (112 ) (10 ) (459 ) Total Deferred Provision for (Benefit from) Income Taxes 10,879 1,900 (10,657 ) Total Provision for (Benefit from) Income Taxes $ 11,752 $ 3,708 $ (10,346 )
Reconciliation of Statutory Tax Rate to Effective Tax Rate	The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at December 31, 2017 , 2016 , and 2015 . Table 20.3 – Reconciliation of Statutory Tax Rate to Effective Tax Rate December 31, 2017 December 31, 2016 December 31, 2015 Federal statutory rate 34.0 % 34.0 % 34.0 % State statutory rate, net of Federal tax effect 7.2 % 7.2 % 7.2 % Differences in taxable (loss) income from GAAP income (3.9 )% (1.0 )% (20.3 )% Change in valuation allowance (1.0 )% (11.2 )% 6.1 % Dividends paid deduction (23.4 )% (26.3 )% (38.3 )% Federal statutory rate change (5.2 )% — % — % Effective Tax Rate 7.7 % 2.7 % (11.3 )%

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Financial Information by Segment	The following tables present financial information by segment for the years ended December 31, 2017 , 2016 , and 2015 . Table 21.1 – Business Segment Financial Information Year Ended December 31, 2017 (In Thousands) Investment Portfolio Residential Mortgage Banking Corporate/ Other Total Interest income $ 188,760 $ 39,309 $ 19,988 $ 248,057 Interest expense (36,690 ) (17,369 ) (54,757 ) (108,816 ) Net interest income (loss) 152,070 21,940 (34,769 ) 139,241 Non-interest income Mortgage banking activities, net — 53,908 — 53,908 MSR income, net 7,860 — — 7,860 Investment fair value changes, net 18,414 — (8,040 ) 10,374 Other income 4,576 — — 4,576 Realized gains, net 14,107 — (752 ) 13,355 Total non-interest income, net 44,957 53,908 (8,792 ) 90,073 Direct operating expenses (6,028 ) (25,113 ) (46,015 ) (77,156 ) Provision for income taxes (5,328 ) (6,424 ) — (11,752 ) Segment Contribution $ 185,671 $ 44,311 $ (89,576 ) Net Income $ 140,406 Non-cash amortization income (expense), net $ 20,974 $ (102 ) $ (3,410 ) $ 17,462 Year Ended December 31, 2016 (In Thousands) Investment Portfolio Residential Mortgage Banking Corporate/ Total Interest income $ 192,200 $ 33,661 $ 20,494 $ 246,355 Interest expense (22,997 ) (14,191 ) (51,340 ) (88,528 ) Net interest income (loss) 169,203 19,470 (30,846 ) 157,827 Reversal of provision for loan losses 7,102 — — 7,102 Non-interest income Mortgage banking activities, net — 40,753 (2,062 ) 38,691 MSR income, net 14,353 — — 14,353 Investment fair value changes, net (24,367 ) — (4,207 ) (28,574 ) Other income 6,338 — — 6,338 Realized gains, net 27,717 — 292 28,009 Total non-interest income, net 24,041 40,753 (5,977 ) 58,817 Direct operating expenses (1) (10,421 ) (23,252 ) (55,113 ) (88,786 ) Provision for income taxes (1,848 ) (1,860 ) — (3,708 ) Segment Contribution $ 188,077 $ 35,111 $ (91,936 ) Net Income $ 131,252 Non-cash amortization income (expense), net $ 29,806 $ (130 ) $ (3,972 ) $ 25,704 Year Ended December 31, 2015 (In Thousands) Investment Portfolio Residential Mortgage Banking Corporate/ Total Interest income $ 177,595 $ 52,260 $ 29,577 $ 259,432 Interest expense (22,684 ) (17,207 ) (55,992 ) (95,883 ) Net interest income (loss) 154,911 35,053 (26,415 ) 163,549 Reversal of provision for loan losses 355 — — 355 Non-interest income Mortgage banking activities, net — 8,268 2,704 10,972 MSR loss, net (3,922 ) — — (3,922 ) Investment fair value changes, net (20,089 ) — (1,268 ) (21,357 ) Other income 3,192 — — 3,192 Realized gains, net 36,369 — — 36,369 Total non-interest income, net 15,550 8,268 1,436 25,254 Direct operating expenses (7,179 ) (43,182 ) (47,055 ) (97,416 ) Benefit from income taxes 846 4,169 5,331 10,346 Segment Contribution $ 164,483 $ 4,308 $ (66,703 ) Net Income $ 102,088 Non-cash amortization income (expense), net $ 36,583 $ (186 ) $ (3,994 ) $ 32,403 Hedging allocations (1,070 ) 1,120 (50 ) — (1) For the year ended December 31, 2016, charges associated with the restructuring of our conforming residential mortgage loan operations and commercial operations, included in the direct operating expense line item, are presented under the Corporate/Other column. See Note 10 for further discussion of these restructuring charges.
Schedule Of Corporate And Other	The following table presents the components of Corporate/Other for the years ended December 31, 2017 , 2016 , and 2015 . Table 21.2 – Components of Corporate/Other Years Ended December 31, 2017 2016 2015 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 19,407 $ 581 $ 19,988 $ 19,537 $ 957 $ 20,494 $ 24,814 $ 4,763 $ 29,577 Interest expense (14,789 ) (39,968 ) (54,757 ) (13,103 ) (38,237 ) (51,340 ) (15,646 ) (40,346 ) (55,992 ) Net interest income (loss) 4,618 (39,387 ) (34,769 ) 6,434 (37,280 ) (30,846 ) 9,168 (35,583 ) (26,415 ) Non-interest income Mortgage banking activities, net — — — — (2,062 ) (2,062 ) — 2,704 2,704 Investment fair value changes, net (8,027 ) (13 ) (8,040 ) (4,200 ) (7 ) (4,207 ) (1,192 ) (76 ) (1,268 ) Realized gains, net — (752 ) (752 ) — 292 292 — — — Total non-interest (loss) income, net (8,027 ) (765 ) (8,792 ) (4,200 ) (1,777 ) (5,977 ) (1,192 ) 2,628 1,436 Direct operating expenses — (46,015 ) (46,015 ) — (55,113 ) (55,113 ) — (47,055 ) (47,055 ) Benefit from income taxes — — — — — — — 5,331 5,331 Total $ (3,409 ) $ (86,167 ) $ (89,576 ) $ 2,234 $ (94,170 ) $ (91,936 ) $ 7,976 $ (74,679 ) $ (66,703 ) (1) Legacy consolidated VIEs represent legacy Sequoia entities that are consolidated for GAAP financial reporting purposes. See Note 4 for further discussion on VIEs.
Supplemental Balance Sheet	The following table presents supplemental information by segment at December 31, 2017 and December 31, 2016. Table 21.3 – Supplemental Segment Information (In Thousands) Investment Portfolio Residential Mortgage Banking Corporate/ Other Total December 31, 2017 Residential loans $ 3,054,448 $ 1,427,945 $ 632,817 $ 5,115,210 Real estate securities 1,476,510 — — 1,476,510 Mortgage servicing rights 63,598 — — 63,598 Total assets 4,743,873 1,453,069 842,880 7,039,822 December 31, 2016 Residential loans $ 2,261,016 $ 835,399 $ 791,636 $ 3,888,051 Real estate securities 1,018,439 — — 1,018,439 Mortgage servicing rights 118,526 — — 118,526 Total assets 3,615,535 866,356 1,001,586 5,483,477

Quarterly Financial Data - Un52

Quarterly Financial Data - Unaudited (Tables)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data	Three Months Ended (In Thousands, except Share Data) December 31, September 30, June 30, March 31, 2017 Operating results: Interest income $ 71,468 $ 62,737 $ 59,224 $ 54,628 Interest expense (36,108 ) (27,443 ) (24,234 ) (21,031 ) Net interest income 35,360 35,294 34,990 33,597 Non-interest income 10,951 26,070 25,297 27,755 Operating expenses (20,367 ) (19,922 ) (18,641 ) (18,226 ) Net income 30,933 36,180 36,324 36,969 Per share data: Net income – basic $ 0.39 $ 0.46 $ 0.46 $ 0.47 Net income – diluted 0.35 0.41 0.43 0.43 Regular dividends declared per common share 0.28 0.28 0.28 0.28 2016 Operating results: Interest income (1) $ 56,334 $ 60,906 $ 66,787 $ 62,328 Interest expense (20,537 ) (21,597 ) (22,444 ) (23,950 ) Net interest income 35,797 39,309 44,343 38,378 Reversal of (provision for) loan losses (2) — 859 6,532 (289 ) Non-interest income (3) 9,763 33,712 10,888 4,454 Operating expenses (4) (17,824 ) (20,355 ) (20,155 ) (30,452 ) Net income 25,355 52,553 41,281 12,063 Per share data: Net income – basic $ 0.32 $ 0.67 $ 0.52 $ 0.15 Net income – diluted 0.31 0.58 0.48 0.15 Regular dividends declared per common share 0.28 0.28 0.28 0.28 (1) Interest income from the three-month period ended June 30, 2016 included $5 million of yield maintenance fees from commercial loans that prepaid during the quarter. (2) During the second quarter of 2016, we recorded a reversal of provision for loan losses of $7 million as a result of the transfer of most of our commercial mezzanine loans from held-for-investment to held-for sale. (3) Non-interest income for the three-month period ended September 30, 2016 included $5 million of realized gains from the sale of the majority of our commercial mezzanine loan portfolio. (4) During the first quarter of 2016, we recorded restructuring charges totaling $10 million associated with the restructuring of our conforming and commercial mortgage banking operations.

Organization (Details)

Organization (Details)	12 Months Ended
	Dec. 31, 2017Segment
Accounting Policies [Abstract]
Number of operating segments	2

Summary of Significant Accoun54

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	May 31, 2014	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2013
Significant Accounting Policies [Line Items]
Risk-sharing arrangement term				10 years
SPE, assets		$ 48,000	$ 49,000
SPE, liabilities		$ 19,000	22,000
Incentive Plan, mandatory holding period before awards vest	3 years
Employee Stock Purchase Plan, percentage of common stock fair value that employees can purchase					85.00%
Employees maximum 401(k) contribution		100.00%
Employer matching contributions		$ 500	$ 600	$ 800
Future lease commitments with expiration date		$ 17,591
Minimum
Significant Accounting Policies [Line Items]
Percentage of losses assumed on pool of loans sold				1.00%
Incentive Plan, awards vesting period (in years)	3 years
Maximum
Significant Accounting Policies [Line Items]
Percentage of losses assumed on pool of loans sold				2.25%
Incentive Plan, awards vesting period (in years)	4 years

Summary of Significant Accoun55

Summary of Significant Accounting Policies - Offsetting of Financial Assets, Liabilities, and Collateral (Details) - USD ($) $ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Offsetting Asset and Liabilities [Line Items]
Derivative assets	[1]	$ 15,718	$ 36,595
Gross Amounts of Recognized Liabilities		(1,747,787)	(854,067)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet - Derivatives	[1]	(63,081)	(66,329)
Net Amounts of Liabilities Presented in Consolidated Balance Sheet		(1,747,787)	(854,067)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		1,694,741	803,211
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged		50,747	50,111
Net Amount		(2,299)	(745)
Interest Rate Agreement, TBAs, And Futures
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Assets		10,298	33,280
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Derivative assets		10,298	33,280
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(6,329)	(11,672)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received		(42)	(9,148)
Net Amount		3,927	12,460
Interest rate agreements
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Assets		10,164	24,980
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Derivative assets		10,164	24,980
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(6,196)	(7,736)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received		(42)	(4,784)
Net Amount		3,926	12,460
Gross Amounts of Recognized Liabilities - Derivatives		(55,567)	(56,919)
Gross Amounts Offset in Consolidated Balance Sheet - Derivatives		0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet - Derivatives		(55,567)	(56,919)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments - Derivatives		6,196	7,736
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged - Derivatives		49,371	49,183
Net Amount - Derivatives		0	0
TBAs
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Assets		133	8,300
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Derivative assets		133	8,300
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(133)	(3,936)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received		0	(4,364)
Net Amount		0	0
Gross Amounts of Recognized Liabilities - Derivatives		(3,808)	(4,681)
Gross Amounts Offset in Consolidated Balance Sheet - Derivatives		0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet - Derivatives		(3,808)	(4,681)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments - Derivatives		133	3,936
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged - Derivatives		1,376	0
Net Amount - Derivatives		(2,299)	(745)
Futures
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Assets		1
Gross Amounts Offset in Consolidated Balance Sheet		0
Derivative assets		1
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		0
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received		0
Net Amount		1
Gross Amounts of Recognized Liabilities - Derivatives			(928)
Gross Amounts Offset in Consolidated Balance Sheet - Derivatives			0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet - Derivatives			(928)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments - Derivatives			0
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged - Derivatives			928
Net Amount - Derivatives			0
Loan warehouse debt
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Liabilities - Other		(1,039,666)	(485,544)
Gross Amounts Offset in Consolidated Balance Sheet - Other		0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet - Other		(1,039,666)	(485,544)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments - Other		1,039,666	485,544
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged - Other		0	0
Net Amount - Other		0	0
Security repurchase agreements
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Liabilities - Other		(648,746)	(305,995)
Gross Amounts Offset in Consolidated Balance Sheet - Other		0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet - Other		(648,746)	(305,995)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments - Other		648,746	305,995
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged - Other		0	0
Net Amount - Other		$ 0	$ 0
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016, assets of consolidated VIEs totaled $1,259,774 and $798,317, respectively. At December 31, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $1,167,157 and $773,980, respectively. See Note 4 for further discussion.

Principles of Consolidation - A

Principles of Consolidation - Additional Information (Details) $ in Millions	12 Months Ended		60 Months Ended
	Dec. 31, 2017USD ($)Entity	Dec. 31, 2016Entity	Dec. 31, 2017USD ($)Entity
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Number of securitization entities to which asset transferred | Entity	7	3	36
Legacy Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, carrying amount, assets and liabilities, net	$ 14		$ 14
Sequoia Choice | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, carrying amount, assets and liabilities, net	$ 78		$ 78

Principles of Consolidation -57

Principles of Consolidation - Assets and Liabilities of Consolidated Variable Interest Entity's (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)Investment	Dec. 31, 2016USD ($)Investment
Variable Interest Entity [Line Items]
Assets	$ 1,259,774	$ 798,317
Liabilities	1,167,157	773,980
Legacy Sequoia
Variable Interest Entity [Line Items]
Assets	637,184	798,317
Liabilities	$ 622,982	$ 773,980
Number of VIEs | Investment	20	20
Legacy Sequoia | Residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	$ 632,817	$ 791,636
Legacy Sequoia | Restricted cash
Variable Interest Entity [Line Items]
Assets	147	148
Legacy Sequoia | Accrued interest receivable
Variable Interest Entity [Line Items]
Assets	867	1,000
Legacy Sequoia | REO
Variable Interest Entity [Line Items]
Assets	3,353	5,533
Legacy Sequoia | Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	537	518
Legacy Sequoia | Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	0
Legacy Sequoia | Asset-backed securities issued
Variable Interest Entity [Line Items]
Liabilities	622,445	773,462
Sequoia Choice
Variable Interest Entity [Line Items]
Assets	622,590	0
Liabilities	$ 544,175	$ 0
Number of VIEs | Investment	2	0
Sequoia Choice | Residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	$ 620,062	$ 0
Sequoia Choice | Restricted cash
Variable Interest Entity [Line Items]
Assets	4	0
Sequoia Choice | Accrued interest receivable
Variable Interest Entity [Line Items]
Assets	2,524	0
Sequoia Choice | REO
Variable Interest Entity [Line Items]
Assets	0	0
Sequoia Choice | Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	2,031	0
Sequoia Choice | Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	4
Sequoia Choice | Asset-backed securities issued
Variable Interest Entity [Line Items]
Liabilities	542,140	0
Total Consolidated VIEs
Variable Interest Entity [Line Items]
Assets	1,259,774	798,317
Liabilities	$ 1,167,157	$ 773,980
Number of VIEs | Investment	22	20
Total Consolidated VIEs | Residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	$ 1,252,879	$ 791,636
Total Consolidated VIEs | Restricted cash
Variable Interest Entity [Line Items]
Assets	151	148
Total Consolidated VIEs | Accrued interest receivable
Variable Interest Entity [Line Items]
Assets	3,391	1,000
Total Consolidated VIEs | REO
Variable Interest Entity [Line Items]
Assets	3,353	5,533
Total Consolidated VIEs | Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	2,568	518
Total Consolidated VIEs | Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	4
Total Consolidated VIEs | Asset-backed securities issued
Variable Interest Entity [Line Items]
Liabilities	$ 1,164,585	$ 773,462

Principles of Consolidation - S

Principles of Consolidation - Securitization Activity Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Variable Interest Entity [Line Items]
MSRs recognized	$ 7,387	$ 10,060	$ 64,725
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Principal balance of loans transferred	2,573,789	1,036,584
MSRs recognized	7,123	6,451
Variable Interest Entity, Not Primary Beneficiary | Trading Securities
Variable Interest Entity [Line Items]
Securities retained, at fair value	66,321	3,573
Variable Interest Entity, Not Primary Beneficiary | AFS Securities
Variable Interest Entity [Line Items]
Securities retained, at fair value	$ 13,341	$ 5,554

Principles of Consolidation - C

Principles of Consolidation - Cash Flows Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Variable Interest Entity [Line Items]
Proceeds from new transfers	$ 2,563,499	$ 1,057,688
MSR fees received	14,302	13,842
Funding of compensating interest, net	(151)	(338)
Cash flows received on retained securities	$ 27,156	$ 30,191

Principles of Consolidation -60

Principles of Consolidation - Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
MSRs
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Prepayment rates	9.00%	21.00%
Discount rates	11.00%	11.00%
Senior IO Securities
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Prepayment rates	10.00%
Discount rates	14.00%
Credit loss assumptions	0.25%
Subordinate Securities
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Prepayment rates	10.00%	15.00%
Discount rates	5.00%	6.00%
Credit loss assumptions	0.25%	0.25%

Principles of Consolidation -61

Principles of Consolidation - Summary of Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
On-balance sheet assets, at fair value:
Maximum loss exposure	$ 381,661	$ 334,734
Principal balance of loans outstanding	8,364,148	6,870,398
Principal balance of loans 30 days delinquent	27,926	21,427
Interest-only, senior and subordinate securities, classified as trading
On-balance sheet assets, at fair value:
Securities	101,426	41,909
Subordinate securities, classified as AFS
On-balance sheet assets, at fair value:
Securities	219,255	234,025
Mortgage servicing rights
On-balance sheet assets, at fair value:
Securities	$ 60,980	$ 58,800

Principles of Consolidation - K

Principles of Consolidation - Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
MSRs
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	$ 60,980	$ 58,800
Expected life (in years)	8 years	7 years
Prepayment speed assumption (annual CPR)	9.00%	11.00%
Decrease in fair value from:
10% adverse change	$ 2,022	$ 2,226
25% adverse change	$ 4,839	$ 5,284
Impact of adverse change in prepayment speed	25.00%	25.00%
Discount rate assumption	11.00%	11.00%
Decrease in fair value from:
100 basis point increase	$ 2,386	$ 2,088
200 basis point increase	$ 4,597	$ 4,032
Impact on discount rate of basis point increase	1.00%	1.00%
Decrease in fair value from:
Impact of adverse change in expected credit losses (as a percent)	25.00%	25.00%
Senior IO 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	$ 33,773	$ 26,618
Expected life (in years)	6 years	6 years
Prepayment speed assumption (annual CPR)	10.00%	8.00%
Decrease in fair value from:
10% adverse change	$ 1,371	$ 1,075
25% adverse change	$ 3,289	$ 2,569
Impact of adverse change in prepayment speed	25.00%	25.00%
Discount rate assumption	11.00%	8.00%
Decrease in fair value from:
100 basis point increase	$ 1,158	$ 1,105
200 basis point increase	$ 2,265	$ 2,128
Impact on discount rate of basis point increase	1.00%	1.00%
Credit loss assumption	0.25%	0.25%
Decrease in fair value from:
10% higher losses	$ 0	$ 19
25% higher losses	$ 0	$ 49
Impact of adverse change in expected credit losses (as a percent)	25.00%	25.00%
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	$ 286,908	$ 249,317
Expected life (in years)	13 years	12 years
Prepayment speed assumption (annual CPR)	11.00%	12.00%
Decrease in fair value from:
10% adverse change	$ 611	$ 997
25% adverse change	$ 1,506	$ 2,494
Impact of adverse change in prepayment speed	25.00%	25.00%
Discount rate assumption	5.00%	6.00%
Decrease in fair value from:
100 basis point increase	$ 25,827	$ 19,574
200 basis point increase	$ 47,885	$ 36,574
Impact on discount rate of basis point increase	1.00%	1.00%
Credit loss assumption	0.25%	0.25%
Decrease in fair value from:
10% higher losses	$ 1,551	$ 1,174
25% higher losses	$ 3,873	$ 2,933
Impact of adverse change in expected credit losses (as a percent)	25.00%	25.00%

Principles of Consolidation -63

Principles of Consolidation - Summary of Redwood's Interest in Third-Party Variable Interest Entity's (Details) - Real estate securities $ in Thousands	Dec. 31, 2017USD ($)
Variable Interest Entity [Line Items]
Assets	$ 1,155,829
Senior IO Securities
Variable Interest Entity [Line Items]
Assets	177,191
Re-REMIC
Variable Interest Entity [Line Items]
Assets	38,875
Subordinate Securities
Variable Interest Entity [Line Items]
Assets	$ 939,763

Fair Value of Financial Instr64

Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values of Assets and Liabilities (Details) - USD ($) $ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Assets
Trading securities		$ 968,844	$ 445,687
Available-for-sale securities		507,666	572,752
MSR Fair Value	[1]	63,598	118,526
Derivative assets	[1]	15,718	36,595
Pledged collateral		42,615	42,875
Liabilities
Derivative liabilities	[1]	63,081	66,329
Carrying Value
Assets
Trading securities		968,844	445,687
Available-for-sale securities		507,666	572,752
MSR Fair Value		63,598	118,526
Cash and cash equivalents		144,663	212,844
Restricted cash		2,144	8,623
Accrued interest receivable		27,013	18,454
Derivative assets		15,718	36,595
REO		3,354	5,533
Margin receivable		85,044	68,038
FHLBC stock		43,393	43,393
Guarantee asset		2,869	4,092
Pledged collateral		42,615	42,875
Liabilities
Short-term debt facilities		1,688,412	791,539
Accrued interest payable		18,435	9,608
Margin payable		390	12,783
Guarantee obligation		19,487	21,668
Derivative liabilities		63,081	66,329
ABS issued at fair value, net		1,164,585	773,462
FHLBC long-term borrowings		1,999,999	1,999,999
Convertible notes, net		686,759	482,195
Trust preferred securities and subordinated notes, net		138,535	138,489
Carrying Value | Residential Loans | Residential Loans
Assets
Loans, held-for-sale		1,427,052	834,193
Carrying Value | Residential Loans | Residential loans, at lower of cost or fair value
Assets
Loans, held-for-sale		893	1,206
Carrying Value | Residential Loans | Residential Loans Held For Investment at Fair Value
Assets
Loans, held-for-investment		3,687,265	3,052,652
Carrying Value | Commercial Loans | Commercial Loans At Lower Of Cost Or Market
Assets
Loans, held-for-sale		0	2,700
Fair Value
Assets
Trading securities		968,844	445,687
Available-for-sale securities		507,666	572,752
MSR Fair Value		63,598	118,526
Cash and cash equivalents		144,663	212,844
Restricted cash		2,144	8,623
Accrued interest receivable		27,013	18,454
Derivative assets		15,718	36,595
REO		3,806	5,560
Margin receivable		85,044	68,038
FHLBC stock		43,393	43,393
Guarantee asset		2,869	4,092
Pledged collateral		42,615	42,875
Liabilities
Short-term debt facilities		1,688,412	791,539
Accrued interest payable		18,435	9,608
Margin payable		390	12,783
Guarantee obligation		18,878	22,181
Derivative liabilities		63,081	66,329
ABS issued at fair value, net		1,164,585	773,462
FHLBC long-term borrowings		1,999,999	1,999,999
Convertible notes, net		692,369	493,365
Trust preferred securities and subordinated notes, net		103,230	96,255
Fair Value | Residential Loans | Residential Loans
Assets
Loans, held-for-sale		1,427,052	834,193
Fair Value | Residential Loans | Residential loans, at lower of cost or fair value
Assets
Loans, held-for-sale		993	1,365
Fair Value | Residential Loans | Residential Loans Held For Investment at Fair Value
Assets
Loans, held-for-investment		3,687,265	3,052,652
Fair Value | Commercial Loans | Commercial Loans At Lower Of Cost Or Market
Assets
Loans, held-for-sale		$ 0	$ 2,700
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016, assets of consolidated VIEs totaled $1,259,774 and $798,317, respectively. At December 31, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $1,167,157 and $773,980, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr65

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Residential loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 5,640
Real estate securities | Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Dealer marks of securities	80.00%
Percentage of carrying value for which dealer quotes were received on securities	85.00%
Percentage difference of internal valuation than dealer marks	1.00%
Residential Senior Securities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 47	$ 5
Residential Subordinate Securities | Subordinate Securities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	594	288
MSRs
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 8	25
MSRs | Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Percentage difference of internal valuation than dealer marks	2.00%
Residential Loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Principal value	$ 5,640	$ 4,850

Fair Value of Financial Instr66

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Assets
Trading securities		$ 968,844	$ 445,687
Available-for-sale securities		507,666	572,752
Derivative assets	[1]	15,718	36,595
MSR Fair Value	[1]	63,598	118,526
Pledged collateral		42,615	42,875
Liabilities
Derivative liabilities	[1]	63,081	66,329
Fair Value, Measurements, Recurring
Assets
Trading securities		968,844	445,687
Available-for-sale securities		507,666	572,752
Derivative assets		15,718	36,595
MSR Fair Value		63,598	118,526
Pledged collateral		42,615	42,875
FHLBC stock		43,393	43,393
Guarantee asset		2,869	4,092
Liabilities
Derivative liabilities		63,081	66,329
ABS issued		1,164,585	773,462
Fair Value, Measurements, Recurring | Residential Loans
Assets
Residential loans		5,114,317	3,886,845
Fair Value, Measurements, Recurring | Level 1
Assets
Trading securities		0	0
Available-for-sale securities		0	0
Derivative assets		134	8,300
MSR Fair Value		0	0
Pledged collateral		42,615	42,875
FHLBC stock		0	0
Guarantee asset		0	0
Liabilities
Derivative liabilities		3,808	5,609
ABS issued		0	0
Fair Value, Measurements, Recurring | Level 1 | Residential Loans
Assets
Residential loans		0	0
Fair Value, Measurements, Recurring | Level 2
Assets
Trading securities		0	0
Available-for-sale securities		0	0
Derivative assets		10,164	24,980
MSR Fair Value		0	0
Pledged collateral		0	0
FHLBC stock		43,393	43,393
Guarantee asset		0	0
Liabilities
Derivative liabilities		55,567	56,919
ABS issued		0	0
Fair Value, Measurements, Recurring | Level 2 | Residential Loans
Assets
Residential loans		0	0
Fair Value, Measurements, Recurring | Level 3
Assets
Trading securities		968,844	445,687
Available-for-sale securities		507,666	572,752
Derivative assets		5,420	3,315
MSR Fair Value		63,598	118,526
Pledged collateral		0	0
FHLBC stock		0	0
Guarantee asset		2,869	4,092
Liabilities
Derivative liabilities		3,706	3,801
ABS issued		1,164,585	773,462
Fair Value, Measurements, Recurring | Level 3 | Residential Loans
Assets
Residential loans		$ 5,114,317	$ 3,886,845
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016, assets of consolidated VIEs totaled $1,259,774 and $798,317, respectively. At December 31, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $1,167,157 and $773,980, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr67

Fair Value of Financial Instruments - Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Commercial Secured Borrowings
Liabilities
Beginning balance	$ 0	$ 63,152
Acquisitions		0
Sales		0
Principal paydowns		(306)
Gains (losses) in net income, net		2,369
Unrealized losses in OCI, net		0
Other settlements, net		(65,215)
Ending Balance		0
ABS issued
Liabilities
Beginning balance	773,462	996,820
Acquisitions	567,099	0
Sales	0	0
Principal paydowns	(205,163)	(208,215)
Gains (losses) in net income, net	29,187	(8,275)
Unrealized losses in OCI, net	0	0
Other settlements, net	0	(6,868)
Ending Balance	1,164,585	773,462
Residential Loans
Assets
Beginning balance	3,886,845	3,797,551
Acquisitions	5,741,427	4,747,564
Sales	(3,982,683)	(3,813,538)
Principal paydowns	(573,168)	(806,081)
Gains (losses) in net income, net	46,119	(33,893)
Unrealized losses in OCI, net	0	0
Other settlements, net	(4,223)	(4,758)
Ending Balance	5,114,317	3,886,845
Commercial Loans
Assets
Beginning balance	0	106,798
Acquisitions		37,625
Sales		(81,523)
Principal paydowns		(476)
Gains (losses) in net income, net		2,791
Unrealized losses in OCI, net		0
Other settlements, net		(65,215)
Ending Balance		0
Trading Securities
Assets
Beginning balance	445,687	404,011
Acquisitions	640,760	292,875
Sales	(137,886)	(244,219)
Principal paydowns	(19,224)	(17,827)
Gains (losses) in net income, net	39,507	10,847
Unrealized losses in OCI, net	0	0
Other settlements, net	0	0
Ending Balance	968,844	445,687
AFS Securities
Assets
Beginning balance	572,752	829,245
Acquisitions	39,700	34,520
Sales	(90,440)	(252,696)
Principal paydowns	(58,554)	(62,229)
Gains (losses) in net income, net	31,892	48,399
Unrealized losses in OCI, net	12,316	(24,487)
Other settlements, net	0	0
Ending Balance	507,666	572,752
MSRs
Assets
Beginning balance	118,526	191,976
Acquisitions	8,026	25,362
Sales	(52,788)	(62,440)
Principal paydowns	0	0
Gains (losses) in net income, net	(10,166)	(36,372)
Unrealized losses in OCI, net	0	0
Other settlements, net	0	0
Ending Balance	63,598	118,526
Guarantee Asset
Assets
Beginning balance	4,092	5,697
Acquisitions	0	0
Sales	0	0
Principal paydowns	0	0
Gains (losses) in net income, net	(1,223)	(1,605)
Unrealized losses in OCI, net	0	0
Other settlements, net	0	0
Ending Balance	2,869	4,092
Derivatives
Assets
Beginning balance	(486)	3,208
Acquisitions	0	0
Sales	0	0
Principal paydowns	0	0
Gains (losses) in net income, net	37,220	30,193
Unrealized losses in OCI, net	0	0
Other settlements, net	(35,020)	(33,887)
Ending Balance	$ 1,714	$ (486)

Fair Value of Financial Instr68

Fair Value of Financial Instruments - Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held Included in Net Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Loan purchase commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 liability	$ (3,706)	$ (486)	$ 0
Commercial Secured Borrowings
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 liability	0	0	3,011
ABS issued
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 liability	(29,187)	8,275	(8,366)
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 gain (loss) attributable to Level 3 asset	523	(17,370)	(5,541)
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 gain (loss) attributable to Level 3 asset	17,727	(14,391)	7,422
Commercial loans, at fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	0	0	(2,620)
Trading Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	28,612	7,184	(13,391)
AFS Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(1,011)	(368)	(246)
MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	1,277	42,964	(3,471)
Loan purchase commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	3,243	0	4,252
Loan forward sale commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	2,177	0	0
Other assets - Guarantee asset
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	$ (1,223)	$ (1,605)	$ (1,504)

Fair Value of Financial Instr69

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Residential loans, at lower of cost or fair value
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Loans, at lower of cost or fair value	$ 854	$ 867
Gain (loss) on assets measured at fair value on a non-recurring basis	22	(17)
Residential loans, at lower of cost or fair value | Level 1
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Loans, at lower of cost or fair value	0	0
Residential loans, at lower of cost or fair value | Level 2
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Loans, at lower of cost or fair value	0	0
Residential loans, at lower of cost or fair value | Level 3
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Loans, at lower of cost or fair value	854	867
REO
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
REO	2,034	5,207
Gain (loss) on assets measured at fair value on a non-recurring basis	(393)	(1,831)
REO | Level 1
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
REO	0	0
REO | Level 2
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
REO	0	0
REO | Level 3
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
REO	$ 2,034	5,207
Commercial loans, at lower of cost or fair value
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Loans, at lower of cost or fair value		2,700
Gain (loss) on assets measured at fair value on a non-recurring basis		(300)
Commercial loans, at lower of cost or fair value | Level 1
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Loans, at lower of cost or fair value		0
Commercial loans, at lower of cost or fair value | Level 2
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Loans, at lower of cost or fair value		0
Commercial loans, at lower of cost or fair value | Level 3
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Loans, at lower of cost or fair value		$ 2,700

Fair Value of Financial Instr70

Fair Value of Financial Instruments - Market Valuation Adjustments, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	$ 7,860	$ 14,353	$ (3,922)
Total Market Valuation Gains (Losses), Net	51,484	(12,917)	(51,975)
Mortgage Banking Activities, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	51,844	36,445	6,482
Mortgage Banking Activities, Net | Residential Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	31,493	5,786	3,712
Mortgage Banking Activities, Net | Loan purchase commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	37,880	25,613	50,234
Mortgage Banking Activities, Net | Commercial loans, at fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	0	433	10,265
Mortgage Banking Activities, Net | Sequoia securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	0	1,455	(15,261)
Mortgage Banking Activities, Net | Risk management derivatives, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(17,529)	3,158	(42,468)
Investment Fair Value Changes, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	10,374	(28,574)	(21,357)
Investment Fair Value Changes, Net | Risk management derivatives, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(12,842)	(9,112)	(9,677)
Investment Fair Value Changes, Net | Residential loans, held-for-investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(5,765)	(23,102)	(6,337)
Investment Fair Value Changes, Net | Trading securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	39,526	9,666	(2,019)
Investment Fair Value Changes, Net | Valuation adjustments on commercial loans held-for-sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	300	(307)	0
Investment Fair Value Changes, Net | Legacy Sequoia
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(8,027)	(4,200)	(1,192)
Investment Fair Value Changes, Net | Sequoia Choice
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(323)	0	0
Investment Fair Value Changes, Net | Risk-sharing investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(1,484)	(1,151)	(1,886)
Investment Fair Value Changes, Net | Impairments on AFS securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(1,011)	(368)	(246)
MSR Income (Loss), Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	(10,734)	(20,788)	(37,100)
MSR Income (Loss), Net | Risk management derivatives, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	(568)	15,584	(12,708)
MSR Income (Loss), Net | MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	$ (10,166)	$ (36,372)	$ (24,392)

Fair Value of Financial Instr71

Fair Value of Financial Instruments - Quantitative Information about Significant Unobservable Inputs Used in Valuation of Level 3 Assets and Liabilities Measured at Fair Value (Details)	12 Months Ended
	Dec. 31, 2017USD ($)$ / loan
ABS Issued Securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,164,585,000
ABS Issued Securities | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate (annual CPR)	8.00%
Loss severity	20.00%
Discount rate	3.00%
Default rate	0.00%
ABS Issued Securities | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate (annual CPR)	25.00%
Loss severity	54.00%
Discount rate	15.00%
Default rate	16.00%
ABS Issued Securities | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate (annual CPR)	17.00%
Loss severity	23.00%
Discount rate	4.00%
Default rate	3.00%
Jumbo fixed rate loans
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 3,372,329,000
Jumbo fixed rate loans | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to TBA price (in dollars per loan) | $ / loan	2.25
Whole loan spread to swap rate	1.75%
Jumbo fixed rate loans | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to TBA price (in dollars per loan) | $ / loan	3.11
Whole loan spread to swap rate	2.25%
Jumbo fixed rate loans | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to TBA price (in dollars per loan) | $ / loan	3.09
Whole loan spread to swap rate	2.24%
Jumbo hybrid loans
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 251,847,000
Jumbo hybrid loans | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to swap rate	1.00%
Prepayment rate (annual CPR)	15.00%
Jumbo hybrid loans | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to swap rate	1.85%
Prepayment rate (annual CPR)	15.00%
Jumbo hybrid loans | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to swap rate	1.59%
Prepayment rate (annual CPR)	15.00%
Jumbo loans committed to sell
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 237,262,000
Jumbo loans committed to sell | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan committed sales price (in dollars per loan) | $ / loan	100.78
Jumbo loans committed to sell | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan committed sales price (in dollars per loan) | $ / loan	103.01
Jumbo loans committed to sell | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan committed sales price (in dollars per loan) | $ / loan	101.42
Legacy Sequoia
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 632,817,000
Sequoia Choice
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	620,062,000
Residential loans, at lower of cost or fair value
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 854,000
Residential loans, at lower of cost or fair value | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity	12.00%
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	18.00%
Trading and AFS securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,476,510,000
Trading and AFS securities | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate (annual CPR)	0.00%
Loss severity	0.00%
Discount rate	3.00%
Default rate	0.00%
Trading and AFS securities | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate (annual CPR)	50.00%
Loss severity	40.00%
Discount rate	15.00%
Default rate	27.00%
Trading and AFS securities | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate (annual CPR)	10.00%
Loss severity	22.00%
Discount rate	5.00%
Default rate	3.00%
MSRs
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 63,598,000
MSRs | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate (annual CPR)	5.00%
Discount rate	10.00%
Per loan annual cost to service (in dollars per loan)	$ 79
MSRs | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate (annual CPR)	26.00%
Discount rate	130.00%
Per loan annual cost to service (in dollars per loan)	$ 82
MSRs | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate (annual CPR)	9.00%
Discount rate	11.00%
Per loan annual cost to service (in dollars per loan)	$ 82
Guarantee asset
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 2,869,000
Guarantee asset | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate (annual CPR)	13.00%
Discount rate	11.00%
Guarantee asset | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate (annual CPR)	13.00%
Discount rate	11.00%
Guarantee asset | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate (annual CPR)	13.00%
Discount rate	11.00%
REO
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 2,034,000
REO | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity	6.00%
REO | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity	42.00%
REO | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity	21.00%
Loan purchase commitments
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 462,000
Loan purchase commitments | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to TBA price (in dollars per loan) | $ / loan	2.25
Whole loan spread to swap rate	1.75%
Prepayment rate (annual CPR)	15.00%
MSR multiple	1.7
Pull-through rate	9.00%
Whole loan spread to swap rate - hybrid	1.00%
Loan purchase commitments | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to TBA price (in dollars per loan) | $ / loan	3.10
Whole loan spread to swap rate	2.25%
Prepayment rate (annual CPR)	15.00%
MSR multiple	5.1
Pull-through rate	100.00%
Whole loan spread to swap rate - hybrid	1.85%
Loan purchase commitments | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Whole loan spread to TBA price (in dollars per loan) | $ / loan	3.06
Whole loan spread to swap rate	2.25%
Prepayment rate (annual CPR)	15.00%
MSR multiple	3.6
Pull-through rate	75.00%
Whole loan spread to swap rate - hybrid	1.51%

Residential Loans - Summary of

Residential Loans - Summary of Classifications and Carrying Value of Residential Loans (Details) - USD ($) $ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Residential Loans Held For Sale
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	[1]	$ 1,427,945	$ 835,399
Residential Loans
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		1,430,000	830,000
Residential loans, at lower of cost or fair value
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		1,000	1,000
Legacy Sequoia | Residential Loans Held For Investment at Fair Value
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		633,000	792,000
Sequoia Choice | Residential Loans Held For Investment at Fair Value
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		620,000
Redwood | Residential Loans Held For Investment at Fair Value
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment			2,260,000
Residential Loans
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		5,115,210	3,888,051
Residential Loans | Residential Loans Held For Sale
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		1,427,945	835,399
Residential Loans | Residential Loans | Jumbo Loans
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		1,427,052	834,193
Residential Loans | Residential loans, at lower of cost or fair value
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		893	1,206
Residential Loans | Residential Loans Held For Investment at Fair Value | Jumbo Loans
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		3,687,265	3,052,652
Residential Loans | Legacy Sequoia
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		632,817	791,636
Residential Loans | Legacy Sequoia | Residential Loans Held For Sale
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		0	0
Residential Loans | Legacy Sequoia | Residential Loans | Jumbo Loans
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		0	0
Residential Loans | Legacy Sequoia | Residential loans, at lower of cost or fair value
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		0	0
Residential Loans | Legacy Sequoia | Residential Loans Held For Investment at Fair Value | Jumbo Loans
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		632,817	791,636
Residential Loans | Sequoia Choice
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		620,062	0
Residential Loans | Sequoia Choice | Residential Loans Held For Sale
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		0	0
Residential Loans | Sequoia Choice | Residential Loans | Jumbo Loans
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		0	0
Residential Loans | Sequoia Choice | Residential loans, at lower of cost or fair value
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		0	0
Residential Loans | Sequoia Choice | Residential Loans Held For Investment at Fair Value | Jumbo Loans
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		620,062	0
Residential Loans | Redwood
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		3,862,331	3,096,415
Residential Loans | Redwood | Residential Loans Held For Sale
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		1,427,945	835,399
Residential Loans | Redwood | Residential Loans | Jumbo Loans
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		1,427,052	834,193
Residential Loans | Redwood | Residential loans, at lower of cost or fair value
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		893	1,206
Residential Loans | Redwood | Residential Loans Held For Investment at Fair Value | Jumbo Loans
Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		$ 2,434,386	$ 2,261,016
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016, assets of consolidated VIEs totaled $1,259,774 and $798,317, respectively. At December 31, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $1,167,157 and $773,980, respectively. See Note 4 for further discussion.

Residential Loans - Additional

Residential Loans - Additional Information (Details)	12 Months Ended
	Dec. 31, 2017USD ($)loan	Dec. 31, 2016USD ($)loan	Dec. 31, 2015USD ($)
Mortgage Loans on Real Estate [Line Items]
Transfers from loans held-for-sale to loans held-for-investment	$ 1,245,430,000	$ 1,063,860,000	$ 1,555,814,000
Transfers from loans held-for-investment to loans held-for-sale	98,854,000	$ 359,005,000	$ 154,012,000
Sequoia Choice
Mortgage Loans on Real Estate [Line Items]
Loans held as assets amount in foreclosure	$ 0
Redwood | Fixed Rate Residential Mortgage
Mortgage Loans on Real Estate [Line Items]
Weighted average rate on loans	4.08%
Redwood | Held-for sale residential loans | FHLB Chicago
Mortgage Loans on Real Estate [Line Items]
Residential mortgage loans securing FHLB advances	$ 2,430,000,000
Residential Loans
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2,009	1,114
Total Principal	$ 1,410,000,000	$ 830,000,000
Loan market valuation adjustment	1,430,000,000	$ 830,000,000
Loans held as assets, 90 days or more past due	$ 500,000
Number of loans in foreclosure | loan	0	0
Principal value	$ 5,640,000,000	$ 4,850,000,000
Principal balance of loans sold during period	4,210,000,000	4,040,000,000
Valuation adjustments	31,000,000	$ 6,000,000
Loan pledged as collateral	1,150,000,000
Loans held as assets amount in foreclosure	$ 1,000,000
Residential Loans | Financing Receivables, Equal to Greater than 90 Days Past Due
Mortgage Loans on Real Estate [Line Items]
Number of loans past due | loan	1	0
Residential loans, at lower of cost or fair value
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	4	7
Total Principal	$ 1,000,000	$ 2,000,000
Loan market valuation adjustment	$ 1,000,000	1,000,000
Loans held as assets, 90 days or more past due		$ 300,000
Number of loans in foreclosure | loan	0	0
Residential loans, at lower of cost or fair value | Financing Receivables, Equal to Greater than 90 Days Past Due
Mortgage Loans on Real Estate [Line Items]
Number of loans past due | loan	1	1
Loans held as assets, 90 days or more past due	$ 300,000
Residential Loans Held For Investment at Fair Value
Mortgage Loans on Real Estate [Line Items]
Number of loans in foreclosure | loan	0
Residential Loans Held For Investment at Fair Value | Legacy Sequoia
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	3,178	3,735
Total Principal	$ 698,000,000	$ 887,000,000
Loan market valuation adjustment	633,000,000	792,000,000
Loans held as assets, 90 days or more past due	$ 25,000,000	30,000,000
FICO credit score	728
Loan to value ratio	66.00%
Loans held as assets amount in foreclosure	$ 10,000,000	11,000,000
Valuation adjustments	$ 23,000,000	$ (14,000,000)
Residential Loans Held For Investment at Fair Value | Sequoia Choice
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	806	0
Total Principal	$ 605,000,000
Loan market valuation adjustment	620,000,000
Loans held as assets, 90 days or more past due	0
Transfers from loans held-for-investment to loans held-for-sale	$ 646,000,000
FICO credit score	742
Loan to value ratio	75.00%
Valuation adjustments	$ (5,000,000)
Residential Loans Held For Investment at Fair Value | Redwood
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	3,292	3,068
Total Principal	$ 2,410,000,000	$ 2,230,000,000
Loan market valuation adjustment		$ 2,260,000,000
Number of loans in foreclosure | loan		0
Valuation adjustments	(5,000,000)	$ (23,000,000)
Transfers from loans held-for-sale to loans held-for-investment	600,000,000	1,060,000,000
Transfers from loans held-for-investment to loans held-for-sale	$ 99,000,000	56,000,000
FICO credit score	770
Loan to value ratio	65.00%
Percentage of loans with fixed interest rate	92.00%
Residential Loans Held For Investment at Fair Value | Redwood | Originated Between 2013 and 2017
Mortgage Loans on Real Estate [Line Items]
Percentage of loan portfolio	96.00%
Residential Loans Held For Investment at Fair Value | Redwood | Originated In 2012 And Prior Years
Mortgage Loans on Real Estate [Line Items]
Percentage of loan portfolio	4.00%
Residential Loans Held For Investment at Fair Value | Redwood | Hybrid Residential Mortgages
Mortgage Loans on Real Estate [Line Items]
Weighted average rate on loans	4.07%
Residential Loans Held For Investment at Fair Value | Redwood | Financing Receivables, Equal to Greater than 90 Days Past Due
Mortgage Loans on Real Estate [Line Items]
Total Principal		$ 200,000
Number of loans past due | loan	0	1
MSRs
Mortgage Loans on Real Estate [Line Items]
Mortgage servicing rights	$ 3,030,000,000

Residential Loans - Geographic

Residential Loans - Geographic Concentration of Residential Loans Recorded on Consolidated Balance Sheet (Details) - Residential loans, held-for-investment	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
California
Concentration Risk [Line Items]
Concentration risk percentage	35.00%	40.00%
Texas
Concentration Risk [Line Items]
Concentration risk percentage	7.00%	9.00%
Washington
Concentration Risk [Line Items]
Concentration risk percentage	9.00%	8.00%
Florida
Concentration Risk [Line Items]
Concentration risk percentage	4.00%	3.00%
Georgia
Concentration Risk [Line Items]
Concentration risk percentage	2.00%	2.00%
New York
Concentration Risk [Line Items]
Concentration risk percentage	2.00%	2.00%
Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	41.00%	36.00%
Legacy Sequoia
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
Legacy Sequoia | California
Concentration Risk [Line Items]
Concentration risk percentage	18.00%	18.00%
Legacy Sequoia | Texas
Concentration Risk [Line Items]
Concentration risk percentage	5.00%	6.00%
Legacy Sequoia | Washington
Concentration Risk [Line Items]
Concentration risk percentage	2.00%	2.00%
Legacy Sequoia | Florida
Concentration Risk [Line Items]
Concentration risk percentage	13.00%	14.00%
Legacy Sequoia | Georgia
Concentration Risk [Line Items]
Concentration risk percentage	5.00%	5.00%
Legacy Sequoia | New York
Concentration Risk [Line Items]
Concentration risk percentage	9.00%	8.00%
Legacy Sequoia | Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	48.00%	47.00%
Sequoia Choice
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	0.00%
Sequoia Choice | California
Concentration Risk [Line Items]
Concentration risk percentage	39.00%	0.00%
Sequoia Choice | Texas
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	0.00%
Sequoia Choice | Washington
Concentration Risk [Line Items]
Concentration risk percentage	7.00%	0.00%
Sequoia Choice | Florida
Concentration Risk [Line Items]
Concentration risk percentage	4.00%	0.00%
Sequoia Choice | Georgia
Concentration Risk [Line Items]
Concentration risk percentage	3.00%	0.00%
Sequoia Choice | New York
Concentration Risk [Line Items]
Concentration risk percentage	3.00%	0.00%
Sequoia Choice | Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	34.00%	0.00%
Redwood
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
Redwood | California
Concentration Risk [Line Items]
Concentration risk percentage	45.00%	42.00%
Redwood | Texas
Concentration Risk [Line Items]
Concentration risk percentage	9.00%	10.00%
Redwood | Washington
Concentration Risk [Line Items]
Concentration risk percentage	5.00%	4.00%
Redwood | Florida
Concentration Risk [Line Items]
Concentration risk percentage	5.00%	5.00%
Redwood | Georgia
Concentration Risk [Line Items]
Concentration risk percentage	1.00%	1.00%
Redwood | New York
Concentration Risk [Line Items]
Concentration risk percentage	4.00%	4.00%
Redwood | Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	31.00%	34.00%

Residential Loans - Loan Produc

Residential Loans - Loan Product Type and Accompanying Loan Characteristics of Residential Loans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)	Dec. 31, 2017USD ($)loan	Dec. 31, 2017USD ($)Contract	Dec. 31, 2016USD ($)loan
Residential loans, held-for-investment
Mortgage Loans on Real Estate [Line Items]
90 Days DQ	$ 25,457	$ 25,457	$ 25,457
Residential loans, held-for-investment | Fixed Loans | Over $1,000 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.00%
Residential Loans Held For Sale
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		2,013		1,121
Total Principal	$ 1,409,179	$ 1,409,179	1,409,179	$ 833,385
30-89 Days DQ	1,913	1,913	1,913	0
90 Days DQ	459	459	459	300
Residential Loans Held For Sale | Hybrid ARM Loans
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	443	443	443	2
Loan Balance, maximum	2,000	$ 2,000	2,000	$ 1,947
Number of Loans | loan		93		173
Total Principal	78,884	$ 78,884	78,884	$ 144,174
30-89 Days DQ	0	0	0	0
90 Days DQ	$ 0	0	0	$ 0
Residential Loans Held For Sale | Hybrid ARM Loans | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.88%			2.50%
Residential Loans Held For Sale | Hybrid ARM Loans | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.00%			6.00%
Residential Loans Held For Sale | Fixed Loans
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 132	132	132	$ 404
Loan Balance, maximum	1,950	$ 1,950	1,950	$ 1,997
Number of Loans | loan		1,917		942
Total Principal	1,329,851	$ 1,329,851	1,329,851	$ 688,329
30-89 Days DQ	1,913	1,913	1,913	0
90 Days DQ	$ 459	459	459	$ 0
Residential Loans Held For Sale | Fixed Loans | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.88%			2.99%
Residential Loans Held For Sale | Fixed Loans | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.25%			6.25%
Residential Loans Held For Sale | ARM Loans
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 58	58	58	$ 61
Loan Balance, maximum	290	$ 290	290	$ 396
Number of Loans | loan		3		6
Total Principal	444	$ 444	444	$ 882
30-89 Days DQ	0	0	0	0
90 Days DQ	$ 0	$ 0	0	$ 300
Residential Loans Held For Sale | ARM Loans | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	1.50%			1.88%
Residential Loans Held For Sale | ARM Loans | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.00%			2.75%
Legacy Sequoia | Residential loans, held-for-investment
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		3,178		3,735
Total Principal	$ 697,922	$ 697,922	697,922	$ 886,981
30-89 Days DQ	20,303	20,303	20,303	32,356
90 Days DQ	25,457	$ 25,457	25,457	$ 30,166
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		33		37
Total Principal	15,211	$ 15,211	15,211	$ 17,691
30-89 Days DQ	0	0	0	669
90 Days DQ	$ 641	641	641	0
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.63%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.75%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $0 to $250
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 0	0	0	0
Loan Balance, maximum	250	$ 250	250	$ 250
Number of Loans | loan		4		4
Total Principal	530	$ 530	530	$ 453
30-89 Days DQ	0	0	0	0
90 Days DQ	$ 0	0	0	$ 0
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $0 to $250 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.25%			3.00%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $0 to $250 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.75%			3.00%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $251 to $500
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 251	251	251	$ 251
Loan Balance, maximum	500	$ 500	500	$ 500
Number of Loans | loan		17		18
Total Principal	6,170	$ 6,170	6,170	$ 6,516
30-89 Days DQ	0	0	0	0
90 Days DQ	$ 0	0	0	$ 0
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $251 to $500 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.63%			2.63%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $251 to $500 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.75%			3.13%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $501 to $750
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 501	501	501	$ 501
Loan Balance, maximum	750	$ 750	750	$ 750
Number of Loans | loan		11		13
Total Principal	7,091	$ 7,091	7,091	$ 8,483
30-89 Days DQ	0	0	0	669
90 Days DQ	$ 641	641	641	$ 0
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $501 to $750 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.38%			2.75%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $501 to $750 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.75%			3.13%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $751 to $1,000
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum				$ 751
Loan Balance, maximum				$ 1,000
Number of Loans | loan				1
Total Principal				$ 751
30-89 Days DQ				0
90 Days DQ				$ 0
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $751 to $1,000 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate				3.13%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $751 to $1,000 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate				3.13%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | Over $1,000
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum
Loan Balance, maximum	1,000	$ 1,000	1,000	$ 1,000
Number of Loans | loan		1		1
Total Principal	1,420	$ 1,420	1,420	$ 1,488
30-89 Days DQ	0	0	0	0
90 Days DQ	$ 0	$ 0	0	$ 0
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | Over $1,000 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.75%			3.00%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | Over $1,000 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.75%			3.00%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		3,145		3,698
Total Principal	$ 682,711	$ 682,711	682,711	$ 869,290
30-89 Days DQ	20,303	20,303	20,303	31,687
90 Days DQ	$ 24,816	24,816	24,816	30,166
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	1.00%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.63%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $0 to $250
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 0	0	0	0
Loan Balance, maximum	250	$ 250	250	$ 250
Number of Loans | loan		2,324		2,623
Total Principal	253,438	$ 253,438	253,438	$ 297,646
30-89 Days DQ	7,436	7,436	7,436	9,158
90 Days DQ	$ 7,284	7,284	7,284	$ 7,410
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $0 to $250 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	1.25%			0.63%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $0 to $250 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.16%			5.60%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $251 to $500
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 251	251	251	$ 251
Loan Balance, maximum	500	$ 500	500	$ 500
Number of Loans | loan		541		694
Total Principal	189,360	$ 189,360	189,360	$ 241,253
30-89 Days DQ	9,082	9,082	9,082	9,177
90 Days DQ	$ 9,178	9,178	9,178	$ 10,059
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $251 to $500 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	1.00%			0.25%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $251 to $500 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.63%			5.75%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $501 to $750
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 501	501	501	$ 501
Loan Balance, maximum	750	$ 750	750	$ 750
Number of Loans | loan		151		203
Total Principal	91,244	$ 91,244	91,244	$ 121,919
30-89 Days DQ	1,995	1,995	1,995	5,812
90 Days DQ	$ 2,589	2,589	2,589	$ 5,069
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $501 to $750 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	1.63%			0.88%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $501 to $750 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.00%			3.89%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $751 to $1,000
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 751	751	751	$ 751
Loan Balance, maximum	1,000	$ 1,000	1,000	$ 1,000
Number of Loans | loan		76		100
Total Principal	65,276	$ 65,276	65,276	$ 86,988
30-89 Days DQ	1,790	1,790	1,790	2,750
90 Days DQ	$ 1,725	1,725	1,725	$ 3,322
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $751 to $1,000 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	1.38%			0.63%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $751 to $1,000 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.38%			3.00%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | Over $1,000
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum
Loan Balance, maximum	1,000	$ 1,000	1,000	$ 1,000
Number of Loans | loan		53		78
Total Principal	83,393	$ 83,393	83,393	$ 121,484
30-89 Days DQ	0	0	0	4,790
90 Days DQ	$ 4,040	$ 4,040	$ 4,040	$ 4,306
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | Over $1,000 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	1.00%			0.25%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | Over $1,000 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.63%			3.75%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans
Mortgage Loans on Real Estate [Line Items]
Number of Loans		806	806
Total Principal	$ 604,747	$ 604,747	$ 604,747
30-89 Days DQ	1,158	1,158	1,158
90 Days DQ	$ 0	0	0
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.75%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.50%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $0 to $250
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 0	0	0
Loan Balance, maximum	250	250	$ 250
Number of Loans | Contract			4
Total Principal	641	641	$ 641
30-89 Days DQ	0	0	0
90 Days DQ	$ 0	0	0
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $0 to $250 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.75%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $0 to $250 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.75%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $251 to $500
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 251	251	251
Loan Balance, maximum	500	500	$ 500
Number of Loans | Contract			85
Total Principal	38,900	38,900	$ 38,900
30-89 Days DQ	486	486	486
90 Days DQ	$ 0	0	0
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $251 to $500 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.13%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $251 to $500 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.75%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $501 to $750
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 501	501	501
Loan Balance, maximum	750	750	$ 750
Number of Loans | Contract			388
Total Principal	240,538	240,538	$ 240,538
30-89 Days DQ	672	672	672
90 Days DQ	$ 0	0	0
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $501 to $750 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.13%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $501 to $750 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.25%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $751 to $1,000
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 751	751	751
Loan Balance, maximum	1,000	1,000	$ 1,000
Number of Loans | Contract			239
Total Principal	210,235	210,235	$ 210,235
30-89 Days DQ	0	0	0
90 Days DQ	$ 0	0	0
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $751 to $1,000 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.25%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $751 to $1,000 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.50%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | Over $1,000
Mortgage Loans on Real Estate [Line Items]
Loan Balance, maximum	$ 1,000	1,000	$ 1,000
Number of Loans | Contract			90
Total Principal	114,433	114,433	$ 114,433
30-89 Days DQ	0	0	0
90 Days DQ	$ 0	$ 0	0
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | Over $1,000 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.13%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | Over $1,000 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.88%
Redwood | Residential loans, held-for-investment
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		3,292		3,068
Total Principal	$ 2,407,993	$ 2,407,993	2,407,993	$ 2,233,797
30-89 Days DQ	10,978	10,978	10,978	4,299
90 Days DQ	0	$ 0	0	$ 237
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		259		11
Total Principal	203,461	$ 203,461	203,461	$ 10,257
30-89 Days DQ	3,214	3,214	3,214	0
90 Days DQ	$ 0	0	0	0
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.63%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.00%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $0 to $250
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 0	0	0
Loan Balance, maximum	250	$ 250	250
Number of Loans | loan		7
Total Principal	1,589	$ 1,589	1,589
30-89 Days DQ	438	438	438
90 Days DQ	$ 0	0	0
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $0 to $250 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.50%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $0 to $250 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.88%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $251 to $500
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 251	251	251	251
Loan Balance, maximum	500	$ 500	500	$ 500
Number of Loans | loan		43		1
Total Principal	16,703	$ 16,703	16,703	$ 264
30-89 Days DQ	566	566	566	0
90 Days DQ	$ 0	0	0	$ 0
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $251 to $500 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.63%			3.63%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $251 to $500 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.88%			3.63%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $501 to $750
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 501	501	501	$ 501
Loan Balance, maximum	750	$ 750	750	$ 750
Number of Loans | loan		87		4
Total Principal	55,709	$ 55,709	55,709	$ 2,722
30-89 Days DQ	1,226	1,226	1,226	0
90 Days DQ	$ 0	0	0	$ 0
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $501 to $750 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.88%			2.88%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $501 to $750 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.13%			4.65%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $751 to $1,000
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 751	751	751	$ 751
Loan Balance, maximum	1,000	$ 1,000	1,000	$ 1,000
Number of Loans | loan		82		2
Total Principal	71,819	$ 71,819	71,819	$ 1,726
30-89 Days DQ	984	984	984	0
90 Days DQ	$ 0	0	0	$ 0
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $751 to $1,000 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.88%			3.50%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $751 to $1,000 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.00%			4.00%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | Over $1,000
Mortgage Loans on Real Estate [Line Items]
Loan Balance, maximum	$ 1,000	$ 1,000	1,000	$ 1,000
Number of Loans | loan		40		4
Total Principal	57,641	$ 57,641	57,641	$ 5,545
30-89 Days DQ	0	0	0	0
90 Days DQ	$ 0	$ 0	0	$ 0
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | Over $1,000 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.00%			3.00%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | Over $1,000 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.00%			4.20%
Redwood | Residential loans, held-for-investment | Fixed Loans
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		3,033		3,057
Total Principal	$ 2,204,532	$ 2,204,532	2,204,532	$ 2,223,540
30-89 Days DQ	7,764	7,764	7,764	4,299
90 Days DQ	$ 0	0	0	237
Redwood | Residential loans, held-for-investment | Fixed Loans | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.75%
Redwood | Residential loans, held-for-investment | Fixed Loans | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.75%
Redwood | Residential loans, held-for-investment | Fixed Loans | $0 to $250
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 0	0	0	0
Loan Balance, maximum	250	$ 250	250	$ 250
Number of Loans | loan		34		26
Total Principal	6,758	$ 6,758	6,758	$ 4,643
30-89 Days DQ	0	0	0	0
90 Days DQ	$ 0	0	0	$ 237
Redwood | Residential loans, held-for-investment | Fixed Loans | $0 to $250 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.13%			3.67%
Redwood | Residential loans, held-for-investment | Fixed Loans | $0 to $250 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.08%			5.08%
Redwood | Residential loans, held-for-investment | Fixed Loans | $251 to $500
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 251	251	251	$ 251
Loan Balance, maximum	500	$ 500	500	$ 500
Number of Loans | loan		681		633
Total Principal	296,950	$ 296,950	296,950	$ 278,560
30-89 Days DQ	1,380	1,380	1,380	264
90 Days DQ	$ 0	0	0	$ 0
Redwood | Residential loans, held-for-investment | Fixed Loans | $251 to $500 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.80%			2.80%
Redwood | Residential loans, held-for-investment | Fixed Loans | $251 to $500 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.13%			5.13%
Redwood | Residential loans, held-for-investment | Fixed Loans | $501 to $750
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 501	501	501	$ 501
Loan Balance, maximum	750	$ 750	750	$ 750
Number of Loans | loan		1,261		1,306
Total Principal	777,103	$ 777,103	777,103	$ 807,714
30-89 Days DQ	3,818	3,818	3,818	2,803
90 Days DQ	$ 0	0	0	$ 0
Redwood | Residential loans, held-for-investment | Fixed Loans | $501 to $750 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.75%			2.75%
Redwood | Residential loans, held-for-investment | Fixed Loans | $501 to $750 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.75%			6.25%
Redwood | Residential loans, held-for-investment | Fixed Loans | $751 to $1,000
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 751	751	751	$ 751
Loan Balance, maximum	1,000	$ 1,000	1,000	$ 1,000
Number of Loans | loan		649		690
Total Principal	559,426	$ 559,426	559,426	$ 597,002
30-89 Days DQ	2,566	2,566	2,566	0
90 Days DQ	$ 0	0	0	$ 0
Redwood | Residential loans, held-for-investment | Fixed Loans | $751 to $1,000 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.75%			2.75%
Redwood | Residential loans, held-for-investment | Fixed Loans | $751 to $1,000 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.00%			5.63%
Redwood | Residential loans, held-for-investment | Fixed Loans | Over $1,000
Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum
Loan Balance, maximum	1,000	$ 1,000	1,000	$ 1,000
Number of Loans | loan		408		402
Total Principal	564,295	$ 564,295	564,295	$ 535,621
30-89 Days DQ	0	0	0	1,232
90 Days DQ	$ 0	$ 0	$ 0	$ 0
Redwood | Residential loans, held-for-investment | Fixed Loans | Over $1,000 | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.80%			2.80%
Redwood | Residential loans, held-for-investment | Fixed Loans | Over $1,000 | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate				5.00%

Real Estate Securities - Fair V

Real Estate Securities - Fair Values of Real Estate Securities by Collateral Type and Entity (Details) - USD ($) $ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Trading		$ 968,844	$ 445,687
Carrying Value		507,666	572,752
Total Real Estate Securities	[1]	$ 1,476,510	$ 1,018,439
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016, assets of consolidated VIEs totaled $1,259,774 and $798,317, respectively. At December 31, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $1,167,157 and $773,980, respectively. See Note 4 for further discussion.

Real Estate Securities - Tradin

Real Estate Securities - Trading Securities by Collateral Type (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Investment Holdings [Line Items]
Trading securities	$ 968,844	$ 445,687
Senior IO Securities
Investment Holdings [Line Items]
Trading securities	69,975	37,067
Subordinate Securities
Investment Holdings [Line Items]
Trading securities	898,869	408,620
Subordinate Securities | Mezzanine
Investment Holdings [Line Items]
Trading securities	563,474	256,226
Subordinate Securities | Subordinate
Investment Holdings [Line Items]
Trading securities	$ 335,395	$ 152,394

Real Estate Securities - Additi

Real Estate Securities - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)Investment	Dec. 31, 2016USD ($)Investment	Dec. 31, 2015USD ($)
Investment Holdings [Line Items]
Trading securities pledged as collateral	$ 593,000
Trading securities	968,844	$ 445,687
Trading securities acquired	661,000	307,000
Trading securities sold	132,000	241,000
Change in trading securities	40,000	11,000
AFS securities acquired	40,000	35,000
AFS securities sold	90,000	253,000
AFS net realized gains	$ 14,000	$ 21,000
Number of AFS securities | Investment	167	186
Number of securities in unrealized loss position | Investment	9	19
Number of securities in a continuous unrealized loss position for twelve consecutive months or longer | Investment	3	10
Other than temporary impairment losses, income statement	$ 1,000	$ 400
Investment fair value changes, net	10,374	(28,574)	$ (21,357)
Accumulated other comprehensive income, other-than-temporary impairments	400	3,000
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains on Available-for-Sale Securities
Investment Holdings [Line Items]
Other than temporary impairment losses, income statement	1,000
Investment fair value changes, net	(1,012)	(368)
Residential
Investment Holdings [Line Items]
Gross unrealized losses	1,367	3,169
Residential
Investment Holdings [Line Items]
Marketable securities, less than five years	100
Marketable securities, due from five to ten years	5,000
Residential Subordinate Securities | Trading securities
Investment Holdings [Line Items]
Unpaid principal balance	943,000	434,000
Subordinate Securities
Investment Holdings [Line Items]
Trading securities	898,869	408,620
Subordinate Securities | Residential
Investment Holdings [Line Items]
Gross unrealized losses	132	1,240
Subordinate Securities | Credit Risk Transfer (CRT) Securities
Investment Holdings [Line Items]
Trading securities	301,000	152,000
Subordinate Securities | Sequoia Securities
Investment Holdings [Line Items]
Trading securities	68,000	15,000
Subordinate Securities | Other Third Party Securities
Investment Holdings [Line Items]
Trading securities	206,000	149,000
Subordinate Securities | Third Party Multifamily Mortgage-backed Securities
Investment Holdings [Line Items]
Trading securities	324,000	92,000
AFS Securities | Residential
Investment Holdings [Line Items]
Securities pledged as collateral	$ 195,000
Re-REMIC
Investment Holdings [Line Items]
Number of AFS securities | Investment	3
Trading securities, fair value	$ 47,000
Re-REMIC | Residential
Investment Holdings [Line Items]
Gross unrealized losses	$ 0	$ 0

Real Estate Securities - Availa

Real Estate Securities - Available for Sale Securities by Collateral Type (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Investment Holdings [Line Items]
Available-for-sale securities	$ 507,666	$ 572,752
Senior IO Securities
Investment Holdings [Line Items]
Available-for-sale securities	140,989	136,546
Re-REMIC
Investment Holdings [Line Items]
Available-for-sale securities	38,875	85,479
Subordinate Securities
Investment Holdings [Line Items]
Available-for-sale securities	327,802	350,727
Subordinate Securities | Mezzanine
Investment Holdings [Line Items]
Available-for-sale securities	92,002	163,715
Subordinate Securities | Subordinate
Investment Holdings [Line Items]
Available-for-sale securities	$ 235,800	$ 187,012

Real Estate Securities - Compon

Real Estate Securities - Components of Carrying Value (Which Equals Fair Value) of Residential Available for Sale Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	$ 507,666	$ 572,752
Senior IO Securities
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	140,989	136,546
Re-REMIC
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	38,875	85,479
Subordinate Securities
Schedule of Available-for-sale Securities [Line Items]
Carrying Value	327,802	350,727
Residential
Schedule of Available-for-sale Securities [Line Items]
Principal balance	608,145	700,829
Credit reserve	(46,549)	(47,473)
Unamortized discount, net	(183,753)	(198,112)
Amortized cost	377,843	455,244
Gross unrealized gains	131,190	120,677
Gross unrealized losses	(1,367)	(3,169)
Carrying Value	507,666	572,752
Residential | Senior IO Securities
Schedule of Available-for-sale Securities [Line Items]
Principal balance	144,512	148,862
Credit reserve	(2,936)	(4,814)
Unamortized discount, net	(34,379)	(41,877)
Amortized cost	107,197	102,171
Gross unrealized gains	35,027	36,304
Gross unrealized losses	(1,235)	(1,929)
Carrying Value	140,989	136,546
Residential | Re-REMIC
Schedule of Available-for-sale Securities [Line Items]
Principal balance	44,613	95,608
Credit reserve	(5,820)	(6,857)
Unamortized discount, net	(9,662)	(19,613)
Amortized cost	29,131	69,138
Gross unrealized gains	9,744	16,341
Gross unrealized losses	0	0
Carrying Value	38,875	85,479
Residential | Subordinate Securities
Schedule of Available-for-sale Securities [Line Items]
Principal balance	419,020	456,359
Credit reserve	(37,793)	(35,802)
Unamortized discount, net	(139,712)	(136,622)
Amortized cost	241,515	283,935
Gross unrealized gains	86,419	68,032
Gross unrealized losses	(132)	(1,240)
Carrying Value	$ 327,802	$ 350,727

Real Estate Securities - Change

Real Estate Securities - Changes of Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities (Details) - Residential - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Credit Reserve
Beginning balance	$ 47,473	$ 48,869
Amortization of net discount	0	0
Realized credit losses	(4,187)	(5,830)
Acquisitions	9,118	9,311
Sales, calls, other	(3,404)	(4,968)
Impairments	1,011	368
Transfers to (release of) credit reserves, net	(3,462)	(277)
Ending Balance	46,549	47,473
Unamortized Discount, Net
Beginning balance	198,112	237,107
Amortization of net discount	(18,795)	(26,253)
Realized credit losses	0	0
Acquisitions	13,080	11,461
Sales, calls, other	(12,106)	(24,480)
Impairments	0	0
Transfers to (release of) credit reserves, net	3,462	277
Ending Balance	$ 183,753	$ 198,112

Real Estate Securities - Comp82

Real Estate Securities - Components of Carrying Value of Residential Available for Sale Securities in Unrealized Loss Position (Details) - Residential - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Consecutive Months Amortized Cost	$ 8,637	$ 15,772
Less Than 12 Consecutive Months Unrealized Losses	(132)	(330)
Less Than 12 Consecutive Months Fair Value	8,505	15,442
12 Consecutive Months or Longer Amortized Cost	28,557	60,035
12 Consecutive Months or Longer Unrealized Losses	(1,235)	(2,839)
12 Consecutive Months or Longer Fair Value	$ 27,322	$ 57,196

Real Estate Securities - Summar

Real Estate Securities - Summary of Significant Valuation Assumptions for Available for Sale Securities (Details) - Prime	12 Months Ended
	Dec. 31, 2017
Minimum
Schedule of Available-for-sale Securities [Line Items]
Prepayment rates	8.00%
Projected losses	0.22%
Maximum
Schedule of Available-for-sale Securities [Line Items]
Prepayment rates	20.00%
Projected losses	5.00%

Real Estate Securities - Activi

Real Estate Securities - Activity of Credit Component of Other-than-Temporary Impairments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Balance at beginning of period	$ 28,261	$ 28,277	$ 33,849
Initial credit impairments	178	346	246
Subsequent credit impairments	47	8	0
Securities sold, or expected to sell	(4,898)	(261)	(4,567)
Securities with no outstanding principal at period end	(2,551)	(109)	(1,251)
Balance at End of Period	$ 21,037	$ 28,261	$ 28,277

Real Estate Securities - Gross

Real Estate Securities - Gross Realized Gains and Losses on Sales and Calls of Available for Sale Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Total Realized Gains on Sales and Calls of AFS Securities, net	$ 14,107	$ 22,515	$ 36,369
Call Option
Schedule of Available-for-sale Securities [Line Items]
Gross realized gains	677	1,210	2,167
Gross realized losses	(497)	0	(112)
Put Option
Schedule of Available-for-sale Securities [Line Items]
Gross realized gains	13,927	23,598	34,922
Gross realized losses	$ 0	$ (2,293)	$ (608)

Mortgage Servicing Rights - Sch

Mortgage Servicing Rights - Schedule of Fair Value of MSRs and Aggregate Principal Amounts of Associated Loans (Details) - USD ($) $ in Thousands		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Servicing Assets at Fair Value [Line Items]
MSR Fair Value	[1]	$ 63,598	$ 118,526
Mortgage servicing rights
Servicing Assets at Fair Value [Line Items]
MSR Fair Value		63,598	118,526	$ 191,976	$ 139,293
Associated Principal		5,556,655	10,456,889
Mortgage servicing rights | Conforming Loans
Servicing Assets at Fair Value [Line Items]
MSR Fair Value		1,194	58,523
Associated Principal		107,416	4,989,720
Mortgage servicing rights | Jumbo Loans
Servicing Assets at Fair Value [Line Items]
MSR Fair Value		62,404	60,003
Associated Principal		$ 5,449,239	$ 5,467,169
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016, assets of consolidated VIEs totaled $1,259,774 and $798,317, respectively. At December 31, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $1,167,157 and $773,980, respectively. See Note 4 for further discussion.

Mortgage Servicing Rights - Act

Mortgage Servicing Rights - Activity for Residential First-Lien Mortgage Servicing Rights (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance at beginning of period	[1]	$ 118,526
Additions		7,387	$ 10,060	$ 64,725
Balance at End of Period	[1]	63,598	118,526
MSRs
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance at beginning of period		118,526	191,976	139,293
Additions		8,026	25,362	95,281
Sales		(52,788)	(62,440)	(18,206)
Changes in fair value due to: Changes in assumptions		(1,088)	(14,512)	(5,453)
Changes in fair value due to: Other changes		(9,078)	(21,860)	(18,939)
Balance at End of Period		$ 63,598	$ 118,526	$ 191,976
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016, assets of consolidated VIEs totaled $1,259,774 and $798,317, respectively. At December 31, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $1,167,157 and $773,980, respectively. See Note 4 for further discussion.

Mortgage Servicing Rights - Sum

Mortgage Servicing Rights - Summary of Retention and Purchase of MSRs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Mortgage Servicing Rights [Line Items]
MSR Fair Value	$ 7,387	$ 10,060	$ 64,725
MSRs
Mortgage Servicing Rights [Line Items]
MSR Fair Value	8,026	25,362	$ 95,281
Associated Principal	792,371	2,926,572
MSRs | Jumbo Loans
Mortgage Servicing Rights [Line Items]
MSR Fair Value	7,386	6,628
Associated Principal	686,263	966,705
MSRs | Jumbo Loans | Securitizations
Mortgage Servicing Rights [Line Items]
MSR Fair Value	7,123	6,451
Associated Principal	654,605	939,861
MSRs | Jumbo Loans | Loan Sales
Mortgage Servicing Rights [Line Items]
MSR Fair Value	263	177
Associated Principal	31,658	26,844
MSRs | Conforming Loans
Mortgage Servicing Rights [Line Items]
MSR Fair Value	640	18,734
Associated Principal	106,108	1,959,867
MSRs | Conforming Loans | Loan Sales
Mortgage Servicing Rights [Line Items]
MSR Fair Value	0	3,380
Associated Principal	0	316,290
MSRs | Conforming Loans | Loan Purchases
Mortgage Servicing Rights [Line Items]
MSR Fair Value	640	15,354
Associated Principal	$ 106,108	$ 1,643,577

Mortgage Servicing Rights - Inc

Mortgage Servicing Rights - Income from Mortgage Servicing Rights, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Transfers and Servicing [Abstract]
Servicing income	$ 21,120	$ 41,152	$ 38,964
Cost of sub-servicer	(2,828)	(6,281)	(5,079)
Net servicing fee income	18,292	34,871	33,885
Market valuation changes of MSRs	(10,166)	(36,372)	(24,392)
Market valuation changes of associated derivatives	(568)	15,584	(12,708)
MSR reversal of provision for repurchases	302	270	(707)
MSR Income (Loss), Net	$ 7,860	$ 14,353	$ (3,922)

Derivative Financial Instrume90

Derivative Financial Instruments - Aggregate Fair Value and Notional Amount of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Fair Value	$ (47,363)	$ (29,734)
Notional Amount	6,644,081	4,980,343
Derivative Liabilities
Derivative [Line Items]
Fair Value	(63,081)	(66,329)
Notional Amount	3,485,466	2,423,362
Derivative Assets
Derivative [Line Items]
Fair Value	15,718	36,595
Notional Amount	3,158,615	2,556,981
Interest rate agreements | Derivative Liabilities
Derivative [Line Items]
Fair Value	(11,888)	(12,097)
Notional Amount	1,248,000	1,101,500
Interest rate agreements | Derivative Liabilities | Cash Flow Hedging
Derivative [Line Items]
Fair Value	(43,679)	(44,822)
Notional Amount	139,500	139,500
Interest rate agreements | Derivative Assets
Derivative [Line Items]
Fair Value	10,122	19,859
Notional Amount	1,765,000	1,009,000
TBAs
Derivative [Line Items]
Notional Amount	1,700,000	1,360,000
TBAs | Derivative Liabilities
Derivative [Line Items]
Fair Value	(3,808)	(4,681)
Notional Amount	1,400,000	510,000
TBAs | Derivative Assets
Derivative [Line Items]
Fair Value	133	8,300
Notional Amount	295,000	850,000
Futures
Derivative [Line Items]
Notional Amount	8,000	88,000
Futures | Derivative Liabilities
Derivative [Line Items]
Fair Value	0	(928)
Notional Amount	0	87,500
Futures | Derivative Assets
Derivative [Line Items]
Fair Value	1	0
Notional Amount	7,500	0
Swaptions | Derivative Assets
Derivative [Line Items]
Fair Value	42	5,121
Notional Amount	200,000	345,000
Loan purchase commitments | Derivative Liabilities
Derivative [Line Items]
Fair Value	(3,706)	(3,801)
Notional Amount	697,966	584,862
Loan purchase commitments | Derivative Assets
Derivative [Line Items]
Fair Value	3,243	3,315
Notional Amount	547,434	352,981
Loan forward sale commitments | Derivative Assets
Derivative [Line Items]
Fair Value	2,177	0
Notional Amount	$ 343,681	$ 0

Derivative Financial Instrume91

Derivative Financial Instruments - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)counterparty	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Derivative [Line Items]
Notional Amount	$ 6,644,081	$ 4,980,343
Net unrealized gain (loss) on interest rate agreements	1,022	3,271	$ (1,409)
Stockholders' equity attributable to parent	$ 1,212,287	1,149,428	1,146,265	$ 1,265,869
Number of counterparties | counterparty	3
Net Unrealized Losses on Interest Rate Agreements Accounted for as Cash Flow Hedges
Derivative [Line Items]
Stockholders' equity attributable to parent	$ (42,953)	(44,020)	(47,363)
Derivative Liabilities
Derivative [Line Items]
Notional Amount	3,485,466	2,423,362
Mortgage Banking Activities, Net
Derivative [Line Items]
Changes in fair value of assets	51,844	36,445	6,482
Loan purchase commitments | Mortgage Banking Activities, Net
Derivative [Line Items]
Changes in fair value of assets	37,880	25,613	50,234
Interest Rate Contract
Derivative [Line Items]
Notional Amount	3,210,000	2,460,000
TBAs
Derivative [Line Items]
Notional Amount	1,700,000	1,360,000
TBAs | Derivative Liabilities
Derivative [Line Items]
Notional Amount	1,400,000	510,000
Futures
Derivative [Line Items]
Notional Amount	8,000	88,000
Futures | Derivative Liabilities
Derivative [Line Items]
Notional Amount	0	87,500
Residential and Commercial Loans
Derivative [Line Items]
Valuation adjustments on derivatives	(31,000)	10,000	$ (65,000)
Interest rate agreements | Cash Flow Hedging
Derivative [Line Items]
Net unrealized gain (loss) on interest rate agreements	1,000	3,000
Interest rate agreements | Derivative Liabilities
Derivative [Line Items]
Notional Amount	1,248,000	1,101,500
Interest rate agreements | Derivative Liabilities | Cash Flow Hedging
Derivative [Line Items]
Notional Amount	$ 139,500	$ 139,500

Derivative Financial Instrume92

Derivative Financial Instruments - Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Derivative [Line Items]
Total interest expense	$ (36,108)	$ (27,443)	$ (24,234)	$ (21,031)	$ (20,537)	$ (21,597)	$ (22,444)	$ (23,950)	$ (108,816)	$ (88,528)	$ (95,883)
Cash Flow Hedging | Interest Rate Contract
Derivative [Line Items]
Net interest expense on cash flows hedges									(4,602)	(5,317)	(5,883)
Realized net losses reclassified from other comprehensive income									(45)	(72)	(95)
Total interest expense									$ (4,647)	$ (5,389)	$ (5,978)

Other Assets and Liabilities -

Other Assets and Liabilities - Summary of Other Assets (Details) - USD ($) $ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Margin receivable		$ 85,044	$ 68,038
FHLBC stock		43,393	43,393
Pledged collateral		42,615	42,875
MSR holdback receivable		8,141	1,862
REO		3,354	5,533
Guarantee asset		2,869	4,092
Fixed assets and leasehold improvements		2,645	2,750
Commercial loans		0	2,700
Other		6,905	10,702
Total Other Assets	[1]	194,966	$ 181,945
Fixed assets basis		6,000
Fixed assets, accumulated depreciation		$ 4,000
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016, assets of consolidated VIEs totaled $1,259,774 and $798,317, respectively. At December 31, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $1,167,157 and $773,980, respectively. See Note 4 for further discussion.

Other Assets and Liabilities 94

Other Assets and Liabilities - Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Accrued compensation	$ 24,025	$ 18,830
Guarantee obligations	19,487	21,668
Deferred tax liabilities	11,764	898
Residential loan and MSR repurchase reserve	4,916	5,432
Legal reserve	2,000	2,000
Accrued operating expenses	1,481	4,493
Current accounts payable	1,339	1,151
Margin payable	390	12,783
Restructuring liabilities	0	2,297
Other	2,327	2,876
Total Other Liabilities	$ 67,729	$ 72,428

Other Assets and Liabilities 95

Other Assets and Liabilities - Additional Information (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016USD ($)	Dec. 31, 2017USD ($)property	Dec. 31, 2016USD ($)loanproperty	Dec. 31, 2015USD ($)
Other Assets and Other Liabilities [Line Items]
Real estate owned (REO)		$ 3,354	$ 5,533
Amount related to transfers into REO		4,000
REO liquidations		10,000
Unrealized gain on REO from market value adjustments		3,000
Costs incurred and expensed	$ 10,000	$ 0	10,401	$ 0
Termination Benefits
Other Assets and Other Liabilities [Line Items]
Costs incurred and expensed			9,000
Contract Termination Costs
Other Assets and Other Liabilities [Line Items]
Costs incurred and expensed			$ 2,000
Commercial loans, at lower of cost or fair value
Other Assets and Other Liabilities [Line Items]
Number of Loans | loan			1
Total Principal			$ 3,000
Carrying value			3,000
Commercial loans, at lower of cost or fair value | Carrying Value
Other Assets and Other Liabilities [Line Items]
Carrying value			$ 3,000
Legacy Sequoia
Other Assets and Other Liabilities [Line Items]
Number of REO properties recorded on balance sheet | property		14	23

Short-Term Debt - Outstanding B

Short-Term Debt - Outstanding Balances of Short-Term Debt by Type of Collateral Securing Debt (Details)		12 Months Ended
		Dec. 31, 2017USD ($)Facility	Dec. 31, 2016USD ($)Facility
Short-term Debt [Line Items]
Number of Facilities | Facility			11
Outstanding Balance	[1],[2]	$ 1,938,682,000	$ 791,539,000
Line of Credit
Short-term Debt [Line Items]
Number of Facilities | Facility		13
Outstanding Balance		$ 1,688,412,000
Convertible notes, net
Short-term Debt [Line Items]
Outstanding Balance		$ 250,270,000
Weighted Average Interest Rate		4.63%
Weighted Average Days Until Maturity		105 days
Residential loan warehouse | Line of Credit
Short-term Debt [Line Items]
Number of Facilities | Facility		4	4
Outstanding Balance		$ 1,039,666,000	$ 485,544,000
Limit		$ 1,575,000,000	$ 1,325,000,000
Weighted Average Interest Rate		3.17%	2.40%
Weighted Average Days Until Maturity		197 days	206 days
Real estate securities repo | Line of Credit
Short-term Debt [Line Items]
Number of Facilities | Facility		9	7
Outstanding Balance		$ 648,746,000	$ 305,995,000
Limit		$ 0	$ 0
Weighted Average Interest Rate		2.69%	1.91%
Weighted Average Days Until Maturity		28 days	24 days
[1]	Includes $250 million of convertible notes, which were reclassified from Long-term debt, net to Short-term debt as the maturity of the notes was less than one year as of December 31, 2017. See Note 11 for further discussion.
[2]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016, assets of consolidated VIEs totaled $1,259,774 and $798,317, respectively. At December 31, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $1,167,157 and $773,980, respectively. See Note 4 for further discussion.

Short-Term Debt - Additional In

Short-Term Debt - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2013
Short-term Debt [Line Items]
Average balance of short-term debt		$ 1,080,000,000	$ 1,090,000,000
Accrued interest payable on short-term debt		2,000,000	1,000,000
Committed line of credit		10,000,000
Collateral at fair value		5,000,000
Committed line of credit with financial institutions, outstanding		0	0
Convertible senior notes due 2018 | Convertible notes
Short-term Debt [Line Items]
Accrued interest payable on short-term debt		2,000,000
Convertible notes	$ 288,000,000			$ 288,000,000
Debt instrument interest rate				4.625%
Deferred debt issuance costs	2,000,000
Repurchased debt instrument, face amount	37,000,000
Gain (loss) on extinguishment of debt	$ (1,000,000)
Residential loans
Short-term Debt [Line Items]
Loan pledged as collateral			534,000,000
Residential
Short-term Debt [Line Items]
Securities pledged as collateral		788,000,000	$ 363,000,000
Residential Loans
Short-term Debt [Line Items]
Loan pledged as collateral		$ 1,150,000,000

Short-Term Debt - Remaining Mat

Short-Term Debt - Remaining Maturities of Short Term Debt (Details) - USD ($) $ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Short-term Debt [Line Items]
Short-term debt	[1],[2]	$ 1,938,682	$ 791,539
Within 30 days
Short-term Debt [Line Items]
Short-term debt		667,942
31 to 90 days
Short-term Debt [Line Items]
Short-term debt		450,923
Over 90 days
Short-term Debt [Line Items]
Short-term debt		819,817
Line of Credit
Short-term Debt [Line Items]
Short-term debt		1,688,412
Line of Credit | Held-for sale residential loans
Short-term Debt [Line Items]
Short-term debt		1,039,666	485,544
Line of Credit | Real estate securities
Short-term Debt [Line Items]
Short-term debt		648,746	$ 305,995
Line of Credit | Within 30 days
Short-term Debt [Line Items]
Short-term debt		667,942
Line of Credit | Within 30 days | Held-for sale residential loans
Short-term Debt [Line Items]
Short-term debt		150,095
Line of Credit | Within 30 days | Real estate securities
Short-term Debt [Line Items]
Short-term debt		517,847
Line of Credit | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		450,923
Line of Credit | 31 to 90 days | Held-for sale residential loans
Short-term Debt [Line Items]
Short-term debt		320,024
Line of Credit | 31 to 90 days | Real estate securities
Short-term Debt [Line Items]
Short-term debt		130,899
Line of Credit | Over 90 days
Short-term Debt [Line Items]
Short-term debt		569,547
Line of Credit | Over 90 days | Held-for sale residential loans
Short-term Debt [Line Items]
Short-term debt		569,547
Line of Credit | Over 90 days | Real estate securities
Short-term Debt [Line Items]
Short-term debt		0
Convertible notes, net
Short-term Debt [Line Items]
Short-term debt		250,270
Convertible notes, net | Within 30 days
Short-term Debt [Line Items]
Short-term debt		0
Convertible notes, net | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		0
Convertible notes, net | Over 90 days
Short-term Debt [Line Items]
Short-term debt		$ 250,270
[1]	Includes $250 million of convertible notes, which were reclassified from Long-term debt, net to Short-term debt as the maturity of the notes was less than one year as of December 31, 2017. See Note 11 for further discussion.
[2]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016, assets of consolidated VIEs totaled $1,259,774 and $798,317, respectively. At December 31, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $1,167,157 and $773,980, respectively. See Note 4 for further discussion.

Asset-Backed Securities Issue99

Asset-Backed Securities Issued - Components of Asset-Backed Securities Issued by Consolidated Securitization Entities Sponsored, Along With Other Selected Information (Details) $ in Thousands		Dec. 31, 2017USD ($)series	Dec. 31, 2016USD ($)series
Debt Instrument [Line Items]
Total FHLBC Borrowings	[1]	$ 2,575,023	$ 2,620,683
Asset-backed securities issued
Debt Instrument [Line Items]
Market valuation adjustments		(62,864)	(110,829)
Total FHLBC Borrowings		1,164,585	773,462
Asset-backed securities issued | Certificates with principal balance
Debt Instrument [Line Items]
Long-term debt, gross		1,217,782	880,517
Asset-backed securities issued | Interest-only certificates
Debt Instrument [Line Items]
Long-term debt, gross		9,667	3,774
Asset-backed securities issued | Legacy Sequoia
Debt Instrument [Line Items]
Market valuation adjustments		(70,652)	(110,829)
Total FHLBC Borrowings		$ 622,445	$ 773,462
Number of series | series		20	20
Asset-backed securities issued | Legacy Sequoia | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series		1.46%	0.74%
Asset-backed securities issued | Legacy Sequoia | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series		2.78%	2.23%
Asset-backed securities issued | Legacy Sequoia | Certificates with principal balance
Debt Instrument [Line Items]
Long-term debt, gross		$ 691,125	$ 880,517
Asset-backed securities issued | Legacy Sequoia | Interest-only certificates
Debt Instrument [Line Items]
Long-term debt, gross		1,972	3,774
Asset-backed securities issued | Sequoia Choice
Debt Instrument [Line Items]
Market valuation adjustments		7,788	0
Total FHLBC Borrowings		$ 542,140	$ 0
Range of weighted average interest rates, by series			0.00%
Number of series | series		2	0
Asset-backed securities issued | Sequoia Choice | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series		4.52%
Asset-backed securities issued | Sequoia Choice | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series		4.73%
Asset-backed securities issued | Sequoia Choice | Certificates with principal balance
Debt Instrument [Line Items]
Long-term debt, gross		$ 526,657	$ 0
Asset-backed securities issued | Sequoia Choice | Interest-only certificates
Debt Instrument [Line Items]
Long-term debt, gross		$ 7,695	$ 0
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016, assets of consolidated VIEs totaled $1,259,774 and $798,317, respectively. At December 31, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $1,167,157 and $773,980, respectively. See Note 4 for further discussion.

Asset-Backed Securities Issu100

Asset-Backed Securities Issued - Additional Information (Details) - Asset-backed securities issued - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Contractual maturities of over five years
Debt Instrument [Line Items]
Contractual maturities of ABS (in years)	5 years
Legacy Sequoia
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	$ 1	$ 1
Sequoia Choice
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	$ 2

Asset-Backed Securities Issu101

Asset-Backed Securities Issued - Summary of Carrying Value Components of Collateral for Asset-Backed Securities Issued and Outstanding (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	$ 1,259,774	$ 798,317
Residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	1,252,879	791,636
Restricted cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	151	148
Accrued interest receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	3,391	1,000
REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	3,353	5,533
Legacy Sequoia
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	637,184	798,317
Legacy Sequoia | Residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	632,817	791,636
Legacy Sequoia | Restricted cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	147	148
Legacy Sequoia | Accrued interest receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	867	1,000
Legacy Sequoia | REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	3,353	5,533
Sequoia Choice
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	622,590	0
Sequoia Choice | Residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	620,062	0
Sequoia Choice | Restricted cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	4	0
Sequoia Choice | Accrued interest receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	2,524	0
Sequoia Choice | REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	$ 0	$ 0

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - USD ($)		1 Months Ended				3 Months Ended	12 Months Ended
		Aug. 31, 2017	Jan. 31, 2016	Nov. 30, 2014	Mar. 31, 2013	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Committed line of credit with financial institutions, outstanding							$ 0	$ 0
FHLB transition period			5 years
Federal home loan bank stock							43,393,000	43,393,000
Accrued interest payable							2,000,000	1,000,000
Notional Amount							6,644,081,000	4,980,343,000
Accrued interest payable (less than)	[1]						18,435,000	9,608,000
Convertible notes | Senior Notes Due 2023
Debt Instrument [Line Items]
Convertible notes		$ 245,000,000					$ 245,000,000
Debt instrument interest rate		4.75%
Debt instrument, maturity year		2,023
Net proceeds from issuance of convertible debt		$ 238,000,000
Interest expense yield							5.30%
Convertible debt, conversion ratio							0.0538394
Convertible senior notes conversion per share (in dollars per share)							$ 18.57
Accrued interest payable							$ 4,000,000
Unamortized deferred issuance costs							(7,000,000)
Convertible notes | Exchangeable senior notes due 2019
Debt Instrument [Line Items]
Convertible notes				$ 205,000,000			$ 201,000,000
Debt instrument interest rate				5.625%
Debt instrument, maturity year				2,019
Net proceeds from issuance of convertible debt				$ 198,000,000
Interest expense yield							6.30%
Convertible debt, conversion ratio							0.0461798
Convertible senior notes conversion per share (in dollars per share)							$ 21.65
Accrued interest payable							$ 1,000,000
Unamortized deferred issuance costs							(2,000,000)
Debt instrument, redemption date				Nov. 15, 2019
Repurchased debt instrument, face amount							$ 0	4,000,000
Convertible notes | Exchangeable senior notes due 2019 | Gain (Loss) on Investments
Debt Instrument [Line Items]
Gain (loss) on extinguishment of debt								300,000
Convertible notes | Convertible senior notes due 2018
Debt Instrument [Line Items]
Convertible notes					$ 288,000,000	$ 288,000,000
Debt instrument interest rate					4.625%
Net proceeds from issuance of convertible debt					$ 279,000,000
Interest expense yield							4.80%
Convertible debt, conversion ratio							0.041132
Convertible senior notes conversion per share (in dollars per share)							$ 24.31
Accrued interest payable							$ 2,000,000
Unamortized deferred issuance costs							(200,000)
Repurchased debt instrument, face amount						37,000,000
Gain (loss) on extinguishment of debt						(1,000,000)
Deferred debt issuance costs						$ 2,000,000
Current maturities of long-term debt							250,000,000
Trust Preferred Securities
Debt Instrument [Line Items]
Debt instrument face amount							$ 100,000,000
Interest expense yield on trust preferred securities and subordinated notes							(6.90%)
Subordinated Notes
Debt Instrument [Line Items]
Debt instrument face amount							$ 40,000,000
Trust Preferred Securities and Subordinated Notes
Debt Instrument [Line Items]
Accrued interest payable (less than)							1,000,000	1,000,000
Trust Preferred Securities and Subordinated Notes | Interest rate agreements
Debt Instrument [Line Items]
Notional Amount							$ 140,000,000
Trust Preferred Securities and Subordinated Notes | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate							2.25%
FHLB Chicago | Redwood | Held-for sale residential loans
Debt Instrument [Line Items]
Residential mortgage loans securing FHLB advances							$ 2,430,000,000
Subsidiaries | FHLB Chicago
Debt Instrument [Line Items]
Maximum borrowing capacity							2,000,000,000
Additional borrowings from FHLB								519,000,000
Committed line of credit with financial institutions, outstanding							2,000,000,000
Outstanding FHLB advances							$ 2,000,000,000	$ 2,000,000,000
Weighted average interest rate							1.38%	0.64%
Weighted average maturity (in years)							8 years	9 years
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016, assets of consolidated VIEs totaled $1,259,774 and $798,317, respectively. At December 31, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $1,167,157 and $773,980, respectively. See Note 4 for further discussion.

Long-Term Debt - Debt maturitie

Long-Term Debt - Debt maturities (Details) - USD ($) $ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Total FHLBC Borrowings	[1]	$ 2,575,023	$ 2,620,683
FHLB Chicago | Subsidiaries
Debt Instrument [Line Items]
2,024		470,171
2,025		887,639
2,026		642,189
Total FHLBC Borrowings		$ 1,999,999
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016, assets of consolidated VIEs totaled $1,259,774 and $798,317, respectively. At December 31, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $1,167,157 and $773,980, respectively. See Note 4 for further discussion.

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)	Jul. 15, 2010Plaintiff	Dec. 31, 2017USD ($)loanleaserepurchase_request	Dec. 31, 2016USD ($)loanrepurchase_request	Dec. 31, 2015USD ($)loan	Dec. 23, 2009
Loss Contingencies [Line Items]
Number of non-cancelable leases | lease		4
Lease expiration year		2,028
Future lease commitments with expiration date		$ 17,591,000
Operating lease expense		2,000,000	$ 3,000,000	$ 3,000,000
Unamortized leasehold improvements		100,000
Leasehold amortization expense (less than)		100,000	100,000	$ 100,000
Loss contingency accrual (less than)		100,000
Guarantee obligations		19,487,000	21,668,000
Guarantee obligation, credit reserve		10,000,000
SPE, assets		48,000,000	49,000,000
SPE, liabilities		19,000,000	22,000,000
Residential loan and MSR repurchase reserve		$ 4,916,000	$ 5,432,000
Residential loans repurchase requests | repurchase_request		17	59
Residential loans, number of loans repurchased | loan		1	1	0
Residential loans repurchase provision (reversal)		$ (300,000)	$ (1,000,000)	$ 3,000,000
Residential loans repurchased during period		200,000	100,000	0
Aggregate amount of loss contingency reserves		2,000,000	2,000,000
Schwab
Loss Contingencies [Line Items]
Number of other named defendants along with SRF | Plaintiff	26
Residential Loans
Loss Contingencies [Line Items]
Principal amount outstanding on loans securitized		1,410,000,000	830,000,000
Loans held as assets amount in foreclosure		1,000,000
Other Income
Loss Contingencies [Line Items]
Fee income from risk sharing agreement		3,000,000	5,000,000	3,000,000
Mortgage Banking And Investment Activities
Loss Contingencies [Line Items]
Market valuation changes in fair value of guarantee asset		(1,000,000)	$ (1,000,000)	$ (2,000,000)
Guarantee Obligations
Loss Contingencies [Line Items]
Original principal balance of loans sold subject to risk sharing agreement		3,190,000,000
Potential future payments on risk sharing agreements		44,000,000
Principal amount outstanding on loans securitized		$ 2,100,000,000
FICO credit score		758
Loan to value ratio		77.00%
Guarantee Obligations | Financing Receivables, Equal to Greater than 90 Days Past Due
Loss Contingencies [Line Items]
Loans past due		$ 8,000,000
Residential | Sequoia Entities | FHLB Seattle
Loss Contingencies [Line Items]
Statutory interest rate per annum					8.00%
Original principal amount of securities		133,000,000
Debt instrument principal payment amount		125,000,000
Debt instrument interest payment amount		11,000,000
Residential | Sequoia Entities | Schwab
Loss Contingencies [Line Items]
Original principal amount of securities		15,000,000
Principal balance of securities		14,000,000
Debt instrument interest amount		$ 1,000,000

Commitments and Contingencie105

Commitments and Contingencies - Future Lease Commitments (Details) $ in Thousands	Dec. 31, 2017USD ($)
Leases [Abstract]
2,018	$ 1,948
2,019	1,987
2,020	1,965
2021 and thereafter	11,691
Total Lease Commitments	$ 17,591

Equity - Changes to Accumulated

Equity - Changes to Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	$ 1,149,428,000	$ 1,146,265,000	$ 1,265,869,000
Balance at End of Period	1,212,287,000	1,149,428,000	1,146,265,000
Other comprehensive income (loss). before reclassification adjustments, tax benefit (provision)	0	1,000,000	(400,000)
Net Unrealized Gains on Available-for-Sale Securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	115,873,000	139,356,000
Other comprehensive income (loss) before reclassifications	22,864,000	(2,316,000)
Amounts reclassified from other accumulated comprehensive income	(10,536,000)	(21,167,000)
Net current-period other comprehensive income (loss)	12,328,000	(23,483,000)
Balance at End of Period	128,201,000	115,873,000	139,356,000
Net Unrealized Losses on Interest Rate Agreements Accounted for as Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	(44,020,000)	(47,363,000)
Other comprehensive income (loss) before reclassifications	1,022,000	3,271,000
Amounts reclassified from other accumulated comprehensive income	45,000	72,000
Net current-period other comprehensive income (loss)	1,067,000	3,343,000
Balance at End of Period	$ (42,953,000)	$ (44,020,000)	$ (47,363,000)

Equity - Reclassifications out

Equity - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investment fair value changes, net									$ (10,374)	$ 28,574	$ 21,357
Realized gains, net									(13,355)	(28,009)	(36,369)
Interest expense	$ 36,108	$ 27,443	$ 24,234	$ 21,031	$ 20,537	$ 21,597	$ 22,444	$ 23,950	108,816	88,528	95,883
Net income before provision for income taxes									(152,158)	(134,960)	$ (91,742)
Other than temporary impairments									1,000	3,000
Other than temporary impairment losses, income statement									1,000	400
Accumulated other comprehensive income, other-than-temporary impairments									400	3,000
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]
Investment fair value changes, net									1,012	368
Realized gains, net									(11,548)	(21,535)
Net income before provision for income taxes									(10,536)	(21,167)
Other than temporary impairment losses, income statement									1,000
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]
Net income before provision for income taxes									45	72
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Losses on Interest Rate Agreements Accounted for as Cash Flow Hedges | Interest Rate Contract
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense									$ 45	$ 72

Equity - Basic and Diluted Earn

Equity - Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Net income attributable to Redwood	$ 30,933	$ 36,180	$ 36,324	$ 36,969	$ 25,355	$ 52,553	$ 41,281	$ 12,063	$ 140,406	$ 131,252	$ 102,088
Less: Dividends and undistributed earnings allocated to participating securities									(3,632)	(3,742)	(2,806)
Net income allocated to common shareholders									$ 136,774	$ 127,510	$ 99,282
Basic weighted average common shares outstanding (in shares)									76,792,957	76,747,047	82,945,103
Basic earnings per common share (in dollars per share)	$ 0.39	$ 0.46	$ 0.46	$ 0.47	$ 0.32	$ 0.67	$ 0.52	$ 0.15	$ 1.78	$ 1.66	$ 1.20
Less: Dividends and undistributed earnings allocated to participating securities									$ (3,836)	$ (4,035)	$ (2,677)
Add back: Interest expense on convertible notes for the period, net of tax									26,898	23,862	0
Net income allocated to common shareholders									$ 163,468	$ 151,079	$ 99,411
Net effect of dilutive equity awards (in shares)									185,383	28,435	1,573,292
Net effect of assumed convertible notes conversion to common shares (in shares)									24,996,668	21,133,608	0
Diluted weighted average common shares outstanding (in shares)									101,975,008	97,909,090	84,518,395
Diluted earnings per common share (in dollars per share)	$ 0.35	$ 0.41	$ 0.43	$ 0.43	$ 0.31	$ 0.58	$ 0.48	$ 0.15	$ 1.60	$ 1.54	$ 1.18

Equity - Additional Information

Equity - Additional Information (Details) - USD ($)	1 Months Ended	2 Months Ended	12 Months Ended
	Feb. 28, 2018	Feb. 26, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Feb. 29, 2016
Stockholders Equity Note [Line Items]
Share repurchases			$ 9,187,000	$ 25,107,000	$ 88,785,000
Share Repurchase Plan, February 2016
Stockholders Equity Note [Line Items]
Stock repurchase program, authorized amount						$ 100,000,000
Share repurchased during period (in shares)			610,342
Share repurchases			$ 9,000,000
Stock repurchase program, remaining authorized repurchase amount			$ 77,000,000
Share Repurchase Plan, February 2016 | Subsequent Event
Stockholders Equity Note [Line Items]
Share repurchased during period (in shares)		1,040,829
Share repurchases		$ 16,000,000
Share Repurchase Plan, February 2018 | Subsequent Event
Stockholders Equity Note [Line Items]
Stock repurchase program, authorized amount	$ 100,000,000
Increase in authorized repurchase amount	$ 39,000,000
Stock repurchase program, remaining authorized repurchase amount		$ 100,000,000
Convertible debt securities
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share			0	0	21,292,309
Equity awards
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share			5,843	0	103,253

Equity Compensation Plans - Add

Equity Compensation Plans - Additional Information (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended				12 Months Ended
	May 31, 2014	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares	Mar. 31, 2016USD ($)executive	Dec. 31, 2015$ / sharesshares	Dec. 31, 2017USD ($)tranchemeasurement_period$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for grant under Redwood's Incentive Plan (in shares)		1,356,438	1,787,974			1,356,438	1,787,974
Unrecognized compensation cost | $		$ 21,470	$ 18,146			$ 21,470	$ 18,146
Equity compensation expense | $						10,141	9,093	$ 11,921
Share-based compensation expense including restructuring | $						$ 10,141
Number of shares purchased by employees (in shares)						361,006
Performance Share Units (PSUs), 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value assumptions, average closing stock price of common stock, measurement period (in days)						60 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost | $		3,000				$ 3,000
Weighted average amortization period remaining for equity awards (in years)						2 years
Equity compensation expense | $						$ 1,000	$ 1,000	$ 1,000
Number of stock awards granted (in shares)						134,364	144,056	141,069
Number of stock awards forfeited (in shares)						19,444	76,614	20,678
Number of stock awards vested (in shares)						61,928	50,107	42,675
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost | $		$ 13,000				$ 13,000
Equity compensation expense | $						$ 6,000	$ 9,000	$ 7,000
Unvested outstanding stock awards (in units)		988,656	908,963		1,043,606	988,656	908,963	1,043,606
Weighted-average grant date fair value of stock awards (in dollars per unit) | $ / shares		$ 15.20	$ 14.96		$ 17.22	$ 15.20	$ 14.96	$ 17.22
Share-based compensation expense including restructuring | $				$ 3,000
Number of executives departing | executive				2
Number of stock awards vested (in units)		889,835	939,899		1,363,548	889,835	939,899	1,363,548
Number of stock awards granted (in shares)						565,921	565,061	583,958
Number of stock awards forfeited (in shares)						31,875	62,894	10,167
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost | $		$ 5,000				$ 5,000
Equity compensation expense | $						$ 2,000	$ 3,000	$ 3,000
Unvested outstanding stock awards (in units)		704,270	642,879			704,270	642,879
Weighted-average grant date fair value of stock awards (in dollars per unit) | $ / shares		$ 11.17	$ 13.24		$ 9.46	$ 11.17	$ 13.24	$ 9.46
Share-based compensation expense including restructuring | $				$ 600
Number of executives departing | executive				2
Number of stock awards granted (in shares)						273,054	194,484	356,762
Number of stock awards forfeited (in shares)						0	208,330	0
Performance Stock Units | Performance Share Units (PSUs), 2015 and 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, vesting period (in years)						3 years
TSR performance period (in years)						3 years
Award vesting rights, total share return, percentage						125.00%
Performance Stock Units | Performance Share Units (PSUs), 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, vesting period (in years)						3 years
TSR performance period (in years)						2 years
Performance shares, number of measurement periods | measurement_period						4
Performance shares, number of vesting tranches | tranche						4
Grant date fair value assumptions, average closing stock price of common stock, measurement period (in days)						60 days
Grant date fair value assumptions, volatility rate						29.00%
Grant date fair value assumptions, risk-free rate						1.57%
Grant date fair value assumptions, dividend yield						0.00%
Grant date fair value assumptions, dividend rate, risk-free rate, treasury rate measurement period (in years)						3 years
Performance Stock Units | Performance Share Units (PSUs), 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
TSR performance period (in years)						3 years
Grant date fair value assumptions, volatility rate						27.00%
Grant date fair value assumptions, risk-free rate						1.90%
Grant date fair value assumptions, dividend yield						0.00%
Performance Stock Units | Performance Share Units (PSUs), 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
TSR performance period (in years)						3 years
Grant date fair value assumptions, average closing stock price of common stock, measurement period (in days)						40 days
Grant date fair value assumptions, volatility rate						26.00%
Grant date fair value assumptions, risk-free rate						1.35%
Grant date fair value assumptions, dividend yield						0.00%
Grant date fair value assumptions, dividend rate, risk-free rate, treasury rate measurement period (in years)						3 years
Performance Stock Units | Performance Share Units (PSUs), 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
TSR performance period (in years)		3 years
Number of stock awards vested (in shares)		0
Performance Stock Units | Performance Share Units (PSUs), 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
TSR performance period (in years)			3 years
Number of stock awards vested (in shares)			0
Performance Stock Units | Performance Share Units (PSUs), 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
TSR performance period (in years)					3 years
Number of stock awards vested (in shares)					57,049
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average amortization period remaining for equity awards (in years)						2 years
Share-based compensation, vesting period (in years)	4 years
Shares of common stock to be purchased in aggregate for all employees (in shares)		450,000				450,000
Maximum | Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average amortization period remaining for equity awards (in years)						2 years
Maximum | Performance Stock Units | Performance Share Units (PSUs), 2015 and 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards, vesting percentage						200.00%
Maximum | Performance Stock Units | Performance Share Units (PSUs), 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards, vesting percentage						200.00%
Award vesting rights, total share return, percentage						72.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, vesting period (in years)	3 years
Minimum | Performance Stock Units | Performance Share Units (PSUs), 2015 and 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards, vesting percentage						0.00%
Minimum | Performance Stock Units | Performance Share Units (PSUs), 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards, vesting percentage						0.00%

Equity Compensation Plans - Unr

Equity Compensation Plans - Unrecognized Compensation Cost (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2017
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period		$ 18,146
Equity grants		14,223
Equity grant forfeitures		(758)
Equity compensation expense		(10,141)
Unrecognized Compensation Cost at End of Period		21,470
Restricted Stock
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized Compensation Cost at End of Period		3,000
Deferred Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Equity compensation expense	$ (3,000)
Unrecognized Compensation Cost at End of Period		13,000
Performance Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Equity compensation expense	$ (600)
Unrecognized Compensation Cost at End of Period		5,000
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		2,091
Equity grants		2,247
Equity grant forfeitures		(286)
Equity compensation expense		(1,244)
Unrecognized Compensation Cost at End of Period		2,808
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		11,506
Equity grants		8,797
Equity grant forfeitures		(472)
Equity compensation expense		(6,467)
Unrecognized Compensation Cost at End of Period		13,364
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		4,549
Equity grants		3,050
Equity grant forfeitures		0
Equity compensation expense		(2,301)
Unrecognized Compensation Cost at End of Period		5,298
Employee Stock Purchase Plan
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period		0
Equity grants		129
Equity grant forfeitures		0
Equity compensation expense		(129)
Unrecognized Compensation Cost at End of Period		$ 0

Equity Compensation Plans - Res

Equity Compensation Plans - Restricted Stock Outstanding (Details) - Restricted Stock - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Shares
Outstanding at beginning of period (in shares)	204,515	187,180	109,464
Granted (in shares)	134,364	144,056	141,069
Vested (in shares)	(61,928)	(50,107)	(42,675)
Forfeited (in shares)	(19,444)	(76,614)	(20,678)
Balance at End of Period (in shares)	257,507	204,515	187,180
Weighted Average Grant Date Fair Market Value
Outstanding at beginning of period (in dollars per share)	$ 14.27	$ 18.22	$ 15.97
Granted (in dollars per share)	16.52	11.89	19.03
Vested (in dollars per share)	14.97	17.28	14.87
Forfeited (in dollars per share)	14.78	18.01	18.74
Balance at End of Period (in dollars per share)	$ 15.23	$ 14.27	$ 18.22

Equity Compensation Plans - Def

Equity Compensation Plans - Deferred Stock Units Activity (Details) - Deferred Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Units
Outstanding at beginning of period (in shares)	1,848,862	2,407,154	2,168,824
Granted (in shares)	565,921	565,061	583,958
Distributions (in shares)	(504,417)	(1,060,459)	(335,461)
Forfeited (in shares)	(31,875)	(62,894)	(10,167)
Balance at End of Period (in shares)	1,878,491	1,848,862	2,407,154
Weighted Average Grant Date Fair Market Value
Outstanding at beginning of period (in dollars per share)	$ 16.46	$ 16.45	$ 16.20
Granted (in dollars per share)	16.01	13.33	16.11
Distributions (in dollars per share)	18.09	14.64	14.20
Forfeited (in dollars per share)	14.80	18.66	16.60
Balance at End of Period (in dollars per share)	$ 15.92	$ 16.46	$ 16.45

Equity Compensation Plans - Sum

Equity Compensation Plans - Summary of Activity Related to ESPP (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee Stock Purchase Plan (ESPP) Activity [Roll Forward]
Balance at beginning of period	$ 3	$ 18	$ 3
Employee purchases	305	290	475
Cost of common stock issued	(304)	(305)	(460)
Balance at End of Period	$ 4	$ 3	$ 18

Equity Compensation Plans - 115

Equity Compensation Plans - Summary of Activity Related to Executive Deferred Compensation Plan (Details) - Executive Deferred Compensation Plan - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred Compensation Cash-based Arrangements, Liability, Current and Noncurrent [Roll Forward]
Balance at beginning of period	$ 2,088	$ 2,095	$ 2,049
New deferrals	750	558	600
Accrued interest	58	53	61
Withdrawals	(725)	(618)	(615)
Balance at End of Period	$ 2,171	$ 2,088	$ 2,095

Mortgage Banking Activities,116

Mortgage Banking Activities, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Mortgage Loans on Real Estate [Line Items]
Mortgage Banking Activities, Net	$ 53,908	$ 38,691	$ 10,972
Investment Fair Value Changes, Net
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	10,374	(28,574)	(21,357)
Mortgage Banking Activities, Net	53,908	38,691	10,972
Investment Fair Value Changes, Net | Risk management derivatives, net
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	(12,842)	(9,112)	(9,677)
Residential Mortgage Banking Activities, Net
Mortgage Loans on Real Estate [Line Items]
Other income (expense), net	2,064	2,203	4,040
Mortgage Banking Activities, Net	53,908	40,753	8,268
Residential Mortgage Banking Activities, Net | Residential loans at fair value
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	69,373	31,399	53,946
Residential Mortgage Banking Activities, Net | Sequoia securities
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	0	1,455	(15,261)
Residential Mortgage Banking Activities, Net | Risk management derivatives, net
Mortgage Loans on Real Estate [Line Items]
Changes in fair value of risk management derivatives	(17,529)	5,696	(34,457)
Commercial Mortgage Banking Activities, Net
Mortgage Loans on Real Estate [Line Items]
Mortgage Banking Activities, Net	$ 0	$ (2,062)	$ 2,704

Investment Fair Value Change117

Investment Fair Value Changes, Net - Components of Investment Activities (Details) - Investment Fair Value Changes, Net - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	$ 10,374	$ (28,574)	$ (21,357)
Residential loans held-for-investment, at Redwood
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(5,765)	(23,102)	(6,337)
Trading securities
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	39,526	9,666	(2,019)
Net investments in Legacy Sequoia entities
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(8,027)	(4,200)	(1,192)
Net investments in Sequoia Choice entities
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(323)	0	0
Risk-sharing investments
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(1,484)	(1,151)	(1,886)
Risk management derivatives, net
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(12,842)	(9,112)	(9,677)
Commercial Loans
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	300	(307)	0
Impairments on AFS securities
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	$ (1,011)	$ (368)	$ (246)

Operating Expenses - Components

Operating Expenses - Components of Operating Expenses (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other Income and Expenses [Abstract]
Fixed compensation expense									$ 22,111	$ 24,332	$ 35,093
Variable compensation expense									20,574	16,581	12,606
Equity compensation expense									10,141	9,093	11,921
Total compensation expense									52,826	50,006	59,620
Systems and consulting									7,073	9,037	10,212
Loan acquisition costs									5,022	5,744	10,326
Office costs									4,248	4,550	5,270
Accounting and legal									2,842	3,658	4,837
Corporate costs									1,856	2,106	2,049
Other operating expenses									3,289	3,284	5,102
Operating expenses before restructuring charges									77,156	78,385	97,416
Restructuring charges								$ 10,000	0	10,401	0
Total Operating Expenses	$ 20,367	$ 19,922	$ 18,641	$ 18,226	$ 17,824	$ 20,355	$ 20,155	30,452	77,156	88,786	97,416
Upfront costs associated with hiring new executive officer									2,000
Restructuring Cost and Reserve [Line Items]
Restructuring charges								$ 10,000	$ 0	10,401	$ 0
Fixed Compensation Expense
Other Income and Expenses [Abstract]
Restructuring charges										5,000
Restructuring Cost and Reserve [Line Items]
Restructuring charges										5,000
Equity Compensation Expense
Other Income and Expenses [Abstract]
Restructuring charges										3,000
Restructuring Cost and Reserve [Line Items]
Restructuring charges										3,000
Contract Termination Costs
Other Income and Expenses [Abstract]
Restructuring charges										2,000
Restructuring Cost and Reserve [Line Items]
Restructuring charges										$ 2,000

Taxes - Components of Net Defer

Taxes - Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred Tax Assets
Net operating loss carryforward – state	$ 108,085	$ 89,350
Net capital loss carryforward – state	0	15,346
Net operating loss carryforward – federal	0	9,537
Net capital loss carryforward – federal	535	2,283
Real estate assets	0	5,601
Interest rate agreements	1,380	0
Allowances and accruals	2,044	3,059
Other	1,844	2,192
Total Deferred Tax Assets	113,888	127,368
Deferred Tax Liabilities
Real estate assets	(562)	0
Mortgage Servicing Rights	(20,540)	(22,531)
Interest rate agreements	0	(2,167)
Tax effect of unrealized gains – OCI	(1,166)	(1,636)
Total Deferred Tax Liabilities	(22,268)	(26,334)
Valuation allowance	(103,384)	(101,932)
Total Deferred Tax Asset (Liability), net of Valuation Allowance	$ (11,764)	$ (898)

Taxes - Additional Information

Taxes - Additional Information (Details)	12 Months Ended
	Dec. 31, 2017USD ($)
Income Taxes [Line Items]
Tax act, tax benefit due to net deferred tax liabilities	$ 8,000,000
Percentage prohibited transaction tax for not meeting the requirements of statutory relief	100.00%
Federal
Income Taxes [Line Items]
Estimated operating loss carry forwards	$ (57,000,000)
NOL carry forwards, expiring year	2,029
NOL carry forwards	$ 0
State and Local Jurisdiction
Income Taxes [Line Items]
NOL carry forwards	$ 1,260,000,000

Taxes - Provision for (Benefit

Taxes - Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current Provision for Income Taxes
Federal	$ 512	$ 1,477	$ 144
State	361	331	167
Total Current Provision for Income Taxes	873	1,808	311
Deferred Provision for Income Taxes
Federal	10,991	1,910	(10,198)
State	(112)	(10)	(459)
Total Deferred Provision for (Benefit from) Income Taxes	10,879	1,900	(10,657)
Total Provision for Income Taxes	$ 11,752	$ 3,708	$ (10,346)

Taxes - Reconciliation of Statu

Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Federal statutory rate	34.00%	34.00%	34.00%
State statutory rate, net of Federal tax effect	7.20%	7.20%	7.20%
Differences in taxable (loss) income from GAAP income	(3.90%)	(1.00%)	(20.30%)
Change in valuation allowance	(1.00%)	(11.20%)	6.10%
Dividends paid deduction	(23.40%)	(26.30%)	(38.30%)
Federal statutory rate change	(5.20%)	(0.00%)	(0.00%)
Effective Tax Rate	7.70%	2.70%	(11.30%)

Segment Information - Additiona

Segment Information - Additional Information (Details)	12 Months Ended
	Dec. 31, 2017Segment
Segment Reporting [Abstract]
Number of operating segments	2

Segment Information - Financial

Segment Information - Financial Information by Segment (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Interest income	$ 71,468	$ 62,737	$ 59,224	$ 54,628	$ 56,334	$ 60,906	$ 66,787	$ 62,328	$ 248,057	$ 246,355	$ 259,432
Interest expense	(36,108)	(27,443)	(24,234)	(21,031)	(20,537)	(21,597)	(22,444)	(23,950)	(108,816)	(88,528)	(95,883)
Net Interest Income	35,360	35,294	34,990	33,597	35,797	39,309	44,343	38,378	139,241	157,827	163,549
Reversal of provision for loan losses					0	859	6,532	(289)	0	7,102	355
Non-interest income
Mortgage banking activities, net									53,908	38,691	10,972
MSR income (loss), net									7,860	14,353	(3,922)
Investment fair value changes, net									10,374	(28,574)	(21,357)
Other income									4,576	6,338	3,192
Realized gains, net									13,355	28,009	36,369
Total non-interest income, net	10,951	26,070	25,297	27,755	9,763	33,712	10,888	4,454	90,073	58,817	25,254
Direct operating expenses	(20,367)	(19,922)	(18,641)	(18,226)	(17,824)	(20,355)	(20,155)	(30,452)	(77,156)	(88,786)	(97,416)
Benefit from income taxes									(11,752)	(3,708)	10,346
Net Income	$ 30,933	$ 36,180	$ 36,324	$ 36,969	$ 25,355	$ 52,553	$ 41,281	$ 12,063	140,406	131,252	102,088
Non-cash amortization income (expense), net									17,462	25,704	32,403
Hedging allocations											0
Operating Segments | Investment Portfolio
Segment Reporting Information [Line Items]
Interest income									188,760	192,200	177,595
Interest expense									(36,690)	(22,997)	(22,684)
Net Interest Income									152,070	169,203	154,911
Reversal of provision for loan losses										7,102	355
Non-interest income
Mortgage banking activities, net									0	0	0
MSR income (loss), net									7,860	14,353	(3,922)
Investment fair value changes, net									18,414	(24,367)	(20,089)
Other income									4,576	6,338	3,192
Realized gains, net									14,107	27,717	36,369
Total non-interest income, net									44,957	24,041	15,550
Direct operating expenses									(6,028)	(10,421)	(7,179)
Benefit from income taxes									(5,328)	(1,848)	846
Net Income									185,671	188,077	164,483
Non-cash amortization income (expense), net									20,974	29,806	36,583
Hedging allocations											(1,070)
Operating Segments | Residential Mortgage Banking
Segment Reporting Information [Line Items]
Interest income									39,309	33,661	52,260
Interest expense									(17,369)	(14,191)	(17,207)
Net Interest Income									21,940	19,470	35,053
Reversal of provision for loan losses										0	0
Non-interest income
Mortgage banking activities, net									53,908	40,753	8,268
MSR income (loss), net									0	0	0
Investment fair value changes, net									0	0	0
Other income									0	0	0
Realized gains, net									0	0	0
Total non-interest income, net									53,908	40,753	8,268
Direct operating expenses									(25,113)	(23,252)	(43,182)
Benefit from income taxes									(6,424)	(1,860)	4,169
Net Income									44,311	35,111	4,308
Non-cash amortization income (expense), net									(102)	(130)	(186)
Hedging allocations											1,120
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income									19,988	20,494	29,577
Interest expense									(54,757)	(51,340)	(55,992)
Net Interest Income									(34,769)	(30,846)	(26,415)
Reversal of provision for loan losses										0	0
Non-interest income
Mortgage banking activities, net									0	(2,062)	2,704
MSR income (loss), net									0	0	0
Investment fair value changes, net									(8,040)	(4,207)	(1,268)
Other income									0	0	0
Realized gains, net									(752)	292	0
Total non-interest income, net									(8,792)	(5,977)	1,436
Direct operating expenses									(46,015)	(55,113)	(47,055)
Benefit from income taxes									0	0	5,331
Net Income									(89,576)	(91,936)	(66,703)
Non-cash amortization income (expense), net									$ (3,410)	$ (3,972)	(3,994)
Hedging allocations											$ (50)

Segment Information - Component

Segment Information - Components of Corporate/Other (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Interest income		$ 71,468	$ 62,737	$ 59,224	$ 54,628	$ 56,334	$ 60,906	$ 66,787	$ 62,328	$ 248,057	$ 246,355	$ 259,432
Interest expense		(36,108)	(27,443)	(24,234)	(21,031)	(20,537)	(21,597)	(22,444)	(23,950)	(108,816)	(88,528)	(95,883)
Net Interest Income		35,360	35,294	34,990	33,597	35,797	39,309	44,343	38,378	139,241	157,827	163,549
Mortgage banking activities, net										53,908	38,691	10,972
Investment fair value changes, net										10,374	(28,574)	(21,357)
Realized gains, net										13,355	28,009	36,369
Total non-interest income, net		10,951	26,070	25,297	27,755	9,763	33,712	10,888	4,454	90,073	58,817	25,254
Direct operating expenses		(20,367)	(19,922)	(18,641)	(18,226)	(17,824)	(20,355)	(20,155)	(30,452)	(77,156)	(88,786)	(97,416)
Benefit from income taxes										(11,752)	(3,708)	10,346
Net Income		30,933	$ 36,180	$ 36,324	$ 36,969	25,355	$ 52,553	$ 41,281	$ 12,063	140,406	131,252	102,088
Real estate securities	[1]	1,476,510				1,018,439				1,476,510	1,018,439
Mortgage servicing rights	[1]	63,598				118,526				63,598	118,526
Total assets	[1]	7,039,822				5,483,477				7,039,822	5,483,477
Residential Loans
Segment Reporting Information [Line Items]
Residential loans		5,115,210				3,888,051				5,115,210	3,888,051
Operating Segments | Investment Portfolio
Segment Reporting Information [Line Items]
Interest income										188,760	192,200	177,595
Interest expense										(36,690)	(22,997)	(22,684)
Net Interest Income										152,070	169,203	154,911
Mortgage banking activities, net										0	0	0
Investment fair value changes, net										18,414	(24,367)	(20,089)
Realized gains, net										14,107	27,717	36,369
Total non-interest income, net										44,957	24,041	15,550
Direct operating expenses										(6,028)	(10,421)	(7,179)
Benefit from income taxes										(5,328)	(1,848)	846
Net Income										185,671	188,077	164,483
Real estate securities		1,476,510				1,018,439				1,476,510	1,018,439
Mortgage servicing rights		63,598				118,526				63,598	118,526
Total assets		4,743,873				3,615,535				4,743,873	3,615,535
Operating Segments | Investment Portfolio | Residential Loans
Segment Reporting Information [Line Items]
Residential loans		3,054,448				2,261,016				3,054,448	2,261,016
Operating Segments | Residential Mortgage Banking
Segment Reporting Information [Line Items]
Interest income										39,309	33,661	52,260
Interest expense										(17,369)	(14,191)	(17,207)
Net Interest Income										21,940	19,470	35,053
Mortgage banking activities, net										53,908	40,753	8,268
Investment fair value changes, net										0	0	0
Realized gains, net										0	0	0
Total non-interest income, net										53,908	40,753	8,268
Direct operating expenses										(25,113)	(23,252)	(43,182)
Benefit from income taxes										(6,424)	(1,860)	4,169
Net Income										44,311	35,111	4,308
Real estate securities		0				0				0	0
Mortgage servicing rights		0				0				0	0
Total assets		1,453,069				866,356				1,453,069	866,356
Operating Segments | Residential Mortgage Banking | Residential Loans
Segment Reporting Information [Line Items]
Residential loans		1,427,945				835,399				1,427,945	835,399
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income										19,988	20,494	29,577
Interest expense										(54,757)	(51,340)	(55,992)
Net Interest Income										(34,769)	(30,846)	(26,415)
Mortgage banking activities, net										0	(2,062)	2,704
Investment fair value changes, net										(8,040)	(4,207)	(1,268)
Realized gains, net										(752)	292	0
Total non-interest income, net										(8,792)	(5,977)	1,436
Direct operating expenses										(46,015)	(55,113)	(47,055)
Benefit from income taxes										0	0	5,331
Net Income										(89,576)	(91,936)	(66,703)
Real estate securities		0				0				0	0
Mortgage servicing rights		0				0				0	0
Total assets		842,880				1,001,586				842,880	1,001,586
Corporate/ Other | Residential Loans
Segment Reporting Information [Line Items]
Residential loans		$ 632,817				$ 791,636				632,817	791,636
Corporate/ Other | Legacy Consolidated VIEs
Segment Reporting Information [Line Items]
Interest income										19,407	19,537	24,814
Interest expense										(14,789)	(13,103)	(15,646)
Net Interest Income										4,618	6,434	9,168
Mortgage banking activities, net										0	0	0
Investment fair value changes, net										(8,027)	(4,200)	(1,192)
Realized gains, net										0	0	0
Total non-interest income, net										(8,027)	(4,200)	(1,192)
Direct operating expenses										0	0	0
Benefit from income taxes										0	0	0
Net Income										(3,409)	2,234	7,976
Corporate/ Other | Other
Segment Reporting Information [Line Items]
Interest income										581	957	4,763
Interest expense										(39,968)	(38,237)	(40,346)
Net Interest Income										(39,387)	(37,280)	(35,583)
Mortgage banking activities, net										0	(2,062)	2,704
Investment fair value changes, net										(13)	(7)	(76)
Realized gains, net										(752)	292	0
Total non-interest income, net										(765)	(1,777)	2,628
Direct operating expenses										(46,015)	(55,113)	(47,055)
Benefit from income taxes										0	0	5,331
Net Income										$ (86,167)	$ (94,170)	$ (74,679)
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2017 and December 31, 2016, assets of consolidated VIEs totaled $1,259,774 and $798,317, respectively. At December 31, 2017 and December 31, 2016, liabilities of consolidated VIEs totaled $1,167,157 and $773,980, respectively. See Note 4 for further discussion.

Quarterly Financial Data - U126

Quarterly Financial Data - Unaudited (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating results:
Interest income	$ 71,468	$ 62,737	$ 59,224	$ 54,628	$ 56,334	$ 60,906	$ 66,787	$ 62,328	$ 248,057	$ 246,355	$ 259,432
Interest expense	(36,108)	(27,443)	(24,234)	(21,031)	(20,537)	(21,597)	(22,444)	(23,950)	(108,816)	(88,528)	(95,883)
Net Interest Income	35,360	35,294	34,990	33,597	35,797	39,309	44,343	38,378	139,241	157,827	163,549
Reversal of (provision for) loan losses					0	859	6,532	(289)	0	7,102	355
Non-interest income	10,951	26,070	25,297	27,755	9,763	33,712	10,888	4,454	90,073	58,817	25,254
Operating expenses	(20,367)	(19,922)	(18,641)	(18,226)	(17,824)	(20,355)	(20,155)	(30,452)	(77,156)	(88,786)	(97,416)
Net Income	$ 30,933	$ 36,180	$ 36,324	$ 36,969	$ 25,355	$ 52,553	$ 41,281	$ 12,063	$ 140,406	$ 131,252	$ 102,088
Per share data:
Net income - basic (in dollars per share)	$ 0.39	$ 0.46	$ 0.46	$ 0.47	$ 0.32	$ 0.67	$ 0.52	$ 0.15	$ 1.78	$ 1.66	$ 1.20
Net Income - diluted (in dollars per share)	0.35	0.41	0.43	0.43	0.31	0.58	0.48	0.15	1.60	1.54	1.18
Regular dividends declared per common share (in dollars per share)	$ 0.28	$ 0.28	$ 0.28	$ 0.28	$ 0.28	$ 0.28	$ 0.28	$ 0.28	$ 1.12	$ 1.12	$ 1.12
Yield maintenance fees received							$ 5,000
Loans and Leases Receivable Disclosure [Line Items]
Costs incurred and expensed								$ 10,000	$ 0	$ 10,401	$ 0
Commercial Loans At Lower Of Cost Or Market
Loans and Leases Receivable Disclosure [Line Items]
Realized gains, net						$ 5,000

Subsequent Events (Details)

Subsequent Events (Details) - Share Repurchase Plan, February 2018 - Subsequent Event $ in Millions	1 Months Ended
	Feb. 28, 2018USD ($)
Subsequent Event [Line Items]
Increase in authorized repurchase amount	$ 39
Stock repurchase program, authorized amount	$ 100

Schedule IV - Mortgage Loans128

Schedule IV - Mortgage Loans On Real Estate (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)	Dec. 31, 2017USD ($)loan	Dec. 31, 2017USD ($)Contract	Dec. 31, 2016USD ($)loan
Residential loans, held-for-investment
Mortgage Loans on Real Estate [Line Items]
Carrying Amount	$ 3,687,265	$ 3,687,265	$ 3,687,265
Principal Amount Subject to Delinquent Principal or Interest	25,457	$ 25,457	25,457
Residential Loans Held For Sale
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		2,013		1,121
Carrying Amount	1,427,945	$ 1,427,945	1,427,945
Principal Amount Subject to Delinquent Principal or Interest	459	$ 459	459	$ 300
Residential Loans Held For Sale | Hybrid ARM Loans
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		93		173
Carrying Amount	79,347	$ 79,347	79,347
Principal Amount Subject to Delinquent Principal or Interest	$ 0	$ 0	0	$ 0
Residential Loans Held For Sale | Hybrid ARM Loans | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.88%			2.50%
Residential Loans Held For Sale | Hybrid ARM Loans | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.00%			6.00%
Residential Loans Held For Sale | Fixed Loans
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		1,917		942
Carrying Amount	$ 1,348,300	$ 1,348,300	1,348,300
Principal Amount Subject to Delinquent Principal or Interest	$ 459	$ 459	459	$ 0
Residential Loans Held For Sale | Fixed Loans | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.88%			2.99%
Residential Loans Held For Sale | Fixed Loans | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.25%			6.25%
Residential Loans Held For Sale | ARM Loans
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		3		6
Carrying Amount	$ 298	$ 298	298
Principal Amount Subject to Delinquent Principal or Interest	$ 0	$ 0	0	$ 300
Residential Loans Held For Sale | ARM Loans | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	1.50%			1.88%
Residential Loans Held For Sale | ARM Loans | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.00%			2.75%
Legacy Sequoia | Residential loans, held-for-investment
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		3,178		3,735
Principal Amount Subject to Delinquent Principal or Interest	$ 25,457	$ 25,457	25,457	$ 30,166
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		33		37
Carrying Amount	13,039	$ 13,039	13,039
Principal Amount Subject to Delinquent Principal or Interest	$ 641	$ 641	641	$ 0
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.63%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.75%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		3,145		3,698
Carrying Amount	$ 619,777	$ 619,777	619,777
Principal Amount Subject to Delinquent Principal or Interest	$ 24,816	$ 24,816	$ 24,816	$ 30,166
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	1.00%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.63%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans
Mortgage Loans on Real Estate [Line Items]
Number of Loans		806	806
Carrying Amount	$ 620,062	$ 620,062	$ 620,062
Principal Amount Subject to Delinquent Principal or Interest	$ 0	$ 0	0
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.75%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.50%
Redwood | Residential loans, held-for-investment
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		3,292		3,068
Principal Amount Subject to Delinquent Principal or Interest	$ 0	$ 0	0	$ 237
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		259		11
Carrying Amount	204,771	$ 204,771	204,771
Principal Amount Subject to Delinquent Principal or Interest	$ 0	$ 0	0	$ 0
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.63%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.00%
Redwood | Residential loans, held-for-investment | Fixed Loans
Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan		3,033		3,057
Carrying Amount	$ 2,229,616	$ 2,229,616	2,229,616
Principal Amount Subject to Delinquent Principal or Interest	$ 0	$ 0	$ 0	$ 237
Redwood | Residential loans, held-for-investment | Fixed Loans | Minimum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.75%
Redwood | Residential loans, held-for-investment | Fixed Loans | Maximum
Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.75%

Schedule IV - Mortgage Loans129

Schedule IV - Mortgage Loans On Real Estate - Rollforward of mortgage loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Movement in Mortgage Loans on Real Estate [Roll Forward]
Balance at beginning of period	$ 3,890,751	$ 4,331,450	$ 3,861,851
Additions during period:
Originations/acquisitions	5,741,427	4,983,049	11,115,486
Net discount accretion	0	330	747
Deductions during period:
Sales	(3,982,683)	(4,509,644)	(10,071,061)
Principal repayments	(576,620)	(879,188)	(582,187)
Reversal of provision for loan losses	0	7,102	355
Transfers to REO	(4,219)	(11,566)	(5,792)
Deconsolidation adjustments	0	(6,871)	0
Changes in fair value, net	46,554	(23,911)	12,051
Balance at end of period	5,115,210	3,890,751	4,331,450
Previously Reported
Movement in Mortgage Loans on Real Estate [Roll Forward]
Balance at beginning of period	3,890,751	4,331,450	3,965,500
Deductions during period:
Balance at end of period		3,890,751	4,331,450
ASU 2014-13 election adjustment
Movement in Mortgage Loans on Real Estate [Roll Forward]
Balance at beginning of period	$ 0	0	(103,649)
Deductions during period:
Balance at end of period		$ 0	$ 0