Redwood Trust (RWT) 10-K 1 Mar 19 2018 Q4 Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Feb. 25, 2019	Jun. 30, 2018
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2,018
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		96,609,827
Entity Public Float			$ 1,224,714,997
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands		Dec. 31, 2018	Dec. 31, 2017
ASSETS
Real estate securities, at fair value	[1]	$ 1,452,494	$ 1,476,510
Other investments	[1]	438,518	63,598
Cash and cash equivalents	[1]	175,764	144,663
Restricted cash	[1]	29,313	2,144
Accrued interest receivable	[1]	47,105	27,013
Derivative assets	[1]	35,789	15,718
Other assets	[1]	217,825	194,966
Total Assets	[1]	11,937,406	7,039,822
Liabilities
Short-term debt	[1],[2]	2,400,279	1,938,682
Accrued interest payable	[1]	42,528	18,435
Derivative liabilities	[1]	84,855	63,081
Accrued expenses and other liabilities	[1]	78,719	67,729
Asset-backed securities issued, at fair value	[1]	5,410,073	1,164,585
Long-term debt, net	[1]	2,572,158	2,575,023
Total liabilities	[1]	10,588,612	5,827,535
Commitments and Contingencies (see Note 16)	[1]
Equity
Common stock, par value $0.01 per share, 180,000,000 shares authorized; 84,884,344 and 76,599,972 issued and outstanding	[1]	849	766
Additional paid-in capital	[1]	1,811,422	1,673,845
Accumulated other comprehensive income	[1]	61,297	85,248
Cumulative earnings	[1]	1,409,941	1,290,341
Cumulative distributions to stockholders	[1]	(1,934,715)	(1,837,913)
Total equity	[1]	1,348,794	1,212,287
Total Liabilities and Equity	[1]	11,937,406	7,039,822
Residential Loans Held For Sale
ASSETS
Loan market valuation adjustment	[1]	1,048,801	1,427,945
Residential Loans Held For Investment
ASSETS
Loan market valuation adjustment	[1]	6,205,941	3,687,265
Business purpose residential loans
ASSETS
Loan market valuation adjustment	[1]	141,258	0
Multifamily loans
ASSETS
Loan market valuation adjustment	[1]	$ 2,144,598	$ 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, 2018 and December 31, 2017, assets of consolidated VIEs totaled $6,331,191 and $1,259,774, respectively. At December 31, 2018 and December 31, 2017, liabilities of consolidated VIEs totaled $5,709,807 and $1,167,157, respectively. See Note 4 for further discussion.
[2]	Includes $201 million and $250 million of convertible notes at December 31, 2018 and 2017, respectively, 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 each of the dates presented. See Note 13 for further discussion.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
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)	84,884,344	76,599,972
Common stock, outstanding (in shares)	84,884,344	76,599,972
Variable interest held by entity, assets	$ 6,331,191	$ 1,259,774
Variable interest held by entity, liabilities	5,709,807	1,167,157
Convertible notes	$ 201,000	$ 250,000

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Interest Income
Residential loans	$ 239,818	$ 154,362	$ 137,804
Commercial loans	0	345	30,496
Business purpose residential loans	4,333	0	0
Multifamily loans	21,322	0	0
Real estate securities	105,078	90,803	76,873
Other interest income	8,166	2,547	1,182
Total interest income	378,717	248,057	246,355
Interest Expense
Short-term debt	(58,917)	(36,851)	(22,287)
Asset-backed securities issued	(99,429)	(19,108)	(14,735)
Long-term debt	(80,693)	(52,857)	(51,506)
Total interest expense	(239,039)	(108,816)	(88,528)
Net Interest Income	139,678	139,241	157,827
Reversal of provision for loan losses	0	0	7,102
Net Interest Income after Provision	139,678	139,241	164,929
Non-interest Income
Mortgage banking activities, net	59,566	53,908	38,691
Investment fair value changes, net	(25,689)	10,374	(28,574)
Other income, net	12,874	12,436	20,691
Realized gains, net	27,041	13,355	28,009
Total non-interest income, net	73,792	90,073	58,817
Operating expenses	(82,782)	(77,156)	(88,786)
Net Income before Provision for Income Taxes	130,688	152,158	134,960
Provision for income taxes	(11,088)	(11,752)	(3,708)
Net Income	$ 119,600	$ 140,406	$ 131,252
Basic earnings per common share (in dollars per share)	$ 1.47	$ 1.78	$ 1.66
Diluted earnings per common share (in dollars per share)	1.34	1.60	1.54
Regular dividends declared per common share (in dollars per share)	$ 1.18	$ 1.12	$ 1.12
Basic weighted average shares outstanding (in shares)	78,724,912	76,792,957	76,747,047
Diluted weighted average shares outstanding (in shares)	110,027,770	101,975,008	97,909,090

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 119,600	$ 140,406	$ 131,252
Other comprehensive (loss) income:
Net unrealized (loss) gain on available-for-sale securities	(7,298)	22,864	(2,316)
Reclassification of unrealized gain on available-for-sale securities to net income	(25,561)	(10,536)	(21,167)
Net unrealized gain on interest rate agreements	8,908	1,022	3,271
Reclassification of unrealized loss on interest rate agreements to net income	0	45	72
Total other comprehensive (loss) income	(23,951)	13,395	(20,140)
Total Comprehensive Income	$ 95,649	$ 153,801	$ 111,112

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
Balance at beginning of period at Dec. 31, 2015	$ 1,146,265	$ 782	$ 1,695,956	$ 91,993	$ 1,018,683	$ (1,661,149)
Beginning 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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	119,600				119,600
Other comprehensive income (loss)	(23,951)			(23,951)
Issuance of common stock	142,228	$ 88	142,140
Issuance of common stock (in shares)		8,738,319
Dividend reinvestment & stock purchase plans	1,706	$ 1	1,705
Dividend reinvestment & stock purchase plans (in shares)		113,004
Employee stock purchase and incentive plans	(4,466)	$ 4	(4,470)
Employee stock purchase and incentive plans (in shares)		473,878
Non-cash equity award compensation	13,736		13,736
Share repurchases	(15,544)	$ (10)	(15,534)
Share repurchases (in shares)		(1,040,829)
Common dividends declared	(96,802)					(96,802)
Balance at End of Period at Dec. 31, 2018	$ 1,348,794	$ 849	$ 1,811,422	$ 61,297	$ 1,409,941	$ (1,934,715)
Ending balance (in shares) at Dec. 31, 2018		84,884,344

Consolidated Statements of Cash

Consolidated Statements of Cash Flows $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)		Dec. 31, 2017USD ($)		Dec. 31, 2016USD ($)
Cash Flows From Operating Activities:
Net income	$ 119,600		$ 140,406		$ 131,252
Adjustments to reconcile net income to net cash used in operating activities:
Amortization of premiums, discounts, and debt issuance costs, net	(13,687)		(18,250)		(26,487)
Depreciation and amortization of non-financial assets	1,308		1,213		1,140
Purchases of held-for-sale loans	(7,162,131)		(5,705,842)		(4,953,619)
Proceeds from sales of held-for-sale loans	5,383,313		3,903,147		4,192,671
Principal payments on held-for-sale loans	66,892		52,956		80,033
Net settlements of derivatives	51,115		(9,950)		(7,301)
Reversal of provision for loan losses	0		0		(7,102)
Non-cash equity award compensation expense	13,736		10,378		12,648
Market valuation adjustments	(24,069)		(51,484)		12,917
Realized gains, net	(27,041)		(13,355)		(28,009)
Net change in:
Accrued interest receivable and other assets	(41,849)		(17,562)		42,572
Accrued interest payable, deferred tax liabilities, and accrued expenses and other liabilities	21,080		(4,820)		3,632
Net cash used in operating activities	(1,611,733)		(1,713,163)		(545,653)
Cash Flows From Investing Activities:
Purchases of loans held-for-investment	(147,523)		0		0
Proceeds from sales of loans held-for-investment	0		0		235,604
Principal payments on loans held-for-investment	781,063		523,561		798,831
Purchases of real estate securities	(609,568)		(600,875)		(318,268)
Proceeds from sales of real estate securities	582,331		228,420		497,191
Purchases of residential securities held in consolidated securitization trust	(227,649)		0		0
Purchases of multifamily securities held in consolidated securitization trusts	(107,411)		0		0
Principal payments on real estate securities	84,495		77,778		80,055
Purchases of servicer advance investments	(395,813)		0		0
Principal repayments from servicer advance investments	94,644		0		0
Sales of mortgage servicing rights, net	6,452		51,494		43,304
Purchases of excess MSRs	(25,489)		0		0
Net investment in participation in loan warehouse facility	(38,209)		0		0
Other investing activities, net	(10,075)		0		0
Net cash (used in) provided by investing activities	(12,752)		280,378		1,336,717
Cash Flows From Financing Activities:
Proceeds from borrowings on short-term debt	6,975,965		4,895,889		3,918,083
Repayments on short-term debt	(6,711,264)		(4,036,634)		(4,981,547)
Proceeds from issuance of asset-backed securities	1,658,848		567,100		0
Repayments on asset-backed securities issued	(459,171)		(205,163)		(261,351)
Proceeds from issuance of long-term debt	199,000		245,000		771,287
Deferred debt issuance costs	(4,977)		(7,380)		0
Repayments on long-term debt	0		0		(118,146)
Net settlements of derivatives	(291)		(137)		(156)
Net proceeds from issuance of common stock	142,601		302		304
Net payments on repurchase of common stock	(16,315)		(8,417)		(28,073)
Taxes paid on equity award distributions	(4,839)		(4,136)		(7,329)
Dividends paid	(96,802)		(88,299)		(88,465)
Net cash provided by (used in) financing activities	1,682,755		1,358,125		(795,393)
Net decrease in cash and cash equivalents	58,270		(74,660)		(4,329)
Cash, cash equivalents and restricted cash at beginning of period (1)	146,807	[1]	221,467	[1]	225,796	[1]
Cash, cash equivalents and restricted cash at end of period (1)	205,077	[1]	146,807	[1]	221,467	[1]
Cash paid during the period for:
Interest	207,014		103,279		87,164
Taxes	10,594		2,746		1,303
Supplemental Noncash Information:
Real estate securities retained from loan securitizations	51,911		79,662		9,127
Retention of mortgage servicing rights from loan securitizations and sales	328		7,387		10,060
Consolidation of residential loans held in securitization trust	1,206,645		0		0
Consolidation of residential ABS	978,996		0		0
Consolidation of multifamily loans held in securitization trusts	2,099,916		0		0
Consolidation of multifamily ABS	1,975,324		0		0
Transfers from loans held-for-sale to loans held-for-investment	2,062,809		1,245,430		1,063,860
Transfers from loans held-for-investment to loans held-for-sale	15,717		98,854		359,005
Transfers from residential loans to real estate owned	$ 4,104		$ 4,220		$ 11,632
[1]	Cash, cash equivalents, and restricted cash at December 31, 2018 included cash and cash equivalents of $176 million and restricted cash of $29 million; at December 31, 2017 included cash and cash equivalents of $145 million and restricted cash of $2 million; and at December 31, 2016 included cash and cash equivalents of $213 million and restricted cash of $9 million.

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	[1]	Dec. 31, 2017	[1]	Dec. 31, 2016
Statement of Cash Flows [Abstract]
Cash and cash equivalents	$ 175,764		$ 144,663		$ 213,000
Restricted cash	$ 29,313		$ 2,144		$ 9,000
[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, 2018 and December 31, 2017, assets of consolidated VIEs totaled $6,331,191 and $1,259,774, respectively. At December 31, 2018 and December 31, 2017, liabilities of consolidated VIEs totaled $5,709,807 and $1,167,157, respectively. See Note 4 for further discussion.

Organization

Organization	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Organization	Organization Redwood Trust, Inc., together with its subsidiaries, is a specialty finance company focused on making credit-sensitive investments in single-family residential and multifamily mortgages and related assets and engaging in mortgage banking activities. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, as well as through capital appreciation. We operate our business in two segments: Investment Portfolio and 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 is generated 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, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements presented herein are at December 31, 2018 and December 31, 2017 , and for the years ended December 31, 2018 , 2017 , and 2016 . 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, 2018 and 2017, 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"). In addition, we consolidated the assets and liabilities of certain third-party Freddie Mac K-Series securitizations beginning in the third quarter of 2018, and the assets and liabilities of one third-party Freddie Mac SLST securitization beginning in the fourth quarter of 2018. 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 purchased or retained, although for the consolidated Sequoia entities 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 and Freddie Mac SLST entities are shown under Residential loans held-for-investment at fair value, and the underlying loans at the consolidated Freddie Mac K-Series are shown under Multifamily 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 14 for further discussion on ABS issued. Beginning in the fourth quarter of 2018, we consolidated two partnerships ("Servicing Investment" entities) through which we have invested in servicing-related assets. We maintain an 80% ownership interest in each entity and have determined that we are the primary beneficiary of these partnerships. 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, 2018
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, MSRs, servicer advance investments, and excess 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, Freddie Mac SLST, and Freddie Mac K-Series 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. 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. 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 for these loans 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 Federal Home Loan Bank of Chicago ("FHLBC") member subsidiary and pledged as collateral for borrowings made from the FHLBC. As of December 31, 2018 , our current intent is to hold these loans for longer-term investment while they are financed by the FHLBC. In addition, we record residential loans held at consolidated Sequoia and Freddie Mac SLST entities at fair value. In accordance with accounting guidance for CFEs, we use the fair value of the ABS issued by these 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 for these loans are recurring and are reported through our consolidated statements of income in Investment fair value changes, net. Business Purpose Residential Loans at Fair Value Business purpose residential loans include loans to investors in single-family rental properties ("Single-family rental loans") and loans to investors rehabilitating and reselling or renting residential properties ("Residential bridge loans"). Our single-family rental loans are held-for-sale at fair value, as we have purchased these loans with the intent to sell to third parties or transfer to securitization entities. Residential bridge loans generally have a term of less than two years and are carried as held-for-investment at fair value, as we generally intend to hold these loans to maturity. 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, unless in the case of residential bridge loans, they are both well-secured and in the process of collection. 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 reported through our consolidated statements of income in Mortgage banking activities, net and Investment fair value changes, net for single-family rental loans and residential bridge loans, respectively. Multifamily Loans, Held-for-Investment at Fair Value Multifamily loans are mortgage loans secured by multifamily properties, held in Freddie Mac-sponsored K-series securitization trusts that we consolidate. In accordance with accounting guidance for collateralized financing entities ("CFEs"), we use the fair value of the ABS issued by the Freddie Mac K-Series 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 for the assets and liabilities of these trusts 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 on our consolidated statements of income. See Note 16 for further discussion on the residential repurchase reserves. Real Estate Securities, at Fair Value Our securities primarily consist of residential mortgage-backed securities (“RMBS”) as well as commercial mortgage-backed securities, which are primiarly comprised of investments in multifamily securities. We classify our real estate securities as trading or available-for-sale securities. Nearly all of our residential 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. The multifamily securities we invest in are primarily subordinate positions in securitizations sponsored by Freddie Mac that are comprised of loans collateralized by multifamily properties. We may also invest in other third-party sponsored commercial mortgage-backed securities. 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 9 for further discussion on real estate securities. Other Investments Servicer Advance Investments Our servicer advance investments are comprised of outstanding servicer advances receivable, the requirement to purchase all future servicer advances made with respect to a specified pool of residential mortgage loans and a fee component of the related MSR. We have elected to record these investments at fair value. We recognize income from our servicer advance investments when earned and deemed collectible and record the income as a component of Other interest income in our consolidated statements of income. Our servicer advance investments are marked-to-market on a recurring basis with changes in the fair value reported in Investment fair value changes, net on our consolidated statements of income. See Note 10 for further discussion on our servicer advance investments. 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 Other income, net on our consolidated statements of income. See Note 10 for further discussion on MSRs. Participation in Loan Warehouse Facility During 2018, we invested in a subordinated participation in a revolving mortgage loan warehouse facility of one of our loan sellers. We account for this subordinated participation interest as a loan receivable at amortized cost, and all associated interest income is recorded as a component of Other interest income in our consolidated statements of income. Excess MSRs Our excess MSR investments represent the right to receive a portion of mortgage servicing cash flows in excess of amounts paid for the underlying mortgage loans to be serviced. As owners of excess MSRs, we are not required to be a licensed servicer, and we are not required to assume any servicing duties, advance obligations or liabilities associated with the loan pool underlying the MSR. We have elected to record these investments at fair value. We recognize income from Excess MSRs when it is earned and deemed collectible and record the income as a component of Other interest income in our consolidated statements of income. Changes in fair value are recurring and are reported through our consolidated statements of income in Investment fair value changes, net. Investment in 5 Arches During 2018, we acquired a 20% minority interest in 5 Arches, LLC ("5 Arches"), an originator and asset manager of business purpose residential mortgage loans. We account for our ownership interest in 5 Arches using the equity method of accounting as we are able to exert significant influence over but do not control the activities of the investee. We monitor the financial performance of 5 Arches and periodically evaluate this investment for impairment. We have elected to record our share of earnings or losses from 5 Arches on a one-quarter lag. 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, cash held at our consolidated Servicing Investment entities, 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, 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 Other income, 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. Financial Futures 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 11 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, security 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, pledged collateral, investment receivable, fixed assets and leasehold improvements, and REO. Other liabilities primarily consists of accrued compensation, payable to minority partner, guarantee obligations, deferred tax liabilities, margin payable, and residential loan and MSR repurchase reserves. See Note 12 for further discussion. 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

Principles of Consolidation

Principles of Consolidation	12 Months Ended
	Dec. 31, 2018
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, 2018 , we consolidated our Legacy Sequoia and Sequoia Choice securitization entities that we determined were VIEs and for which we determined we were the primary beneficiary. Additionally, beginning in the second half of 2018, we consolidated certain third-party Freddie Mac K-Series securitization entities and the Freddie Mac SLST securitization entity 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 for the consolidated Sequoia entities 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, 2018 , the estimated fair value of our investments in the consolidated Legacy Sequoia, Sequoia Choice, Freddie Mac SLST, and Freddie Mac K-Series entities was $12 million , $196 million , $230 million and $126 million , respectively. Beginning in the fourth quarter of 2018, we consolidated two partnerships formed to invest in servicing-related assets that we determined were VIEs and for which we determined we were the primary beneficiary. At December 31, 2018, we held an 80% ownership interest in, and were the managing member of, each entity. See Note 10 for a further description of these entities and the investments they hold and Note 12 for additional information on the minority partner’s interest. Additionally, at December 31, 2018, we consolidated an entity that was formed to finance servicing advances, that we determined was a VIE and for which we, through our control of one of the aforementioned partnerships, were the primary beneficiary. The servicer advance financing consists of non-recourse short-term securitization debt, secured by servicing advances. We consolidate the securitization entity, but the securitization entity is independent of Redwood and the assets and liabilities are not owned by and are not legal obligations of Redwood. See Note 13 for additional information on the servicer advance financing. At December 31, 2018, the estimated fair value of our investment in the Servicing Investment entities was $57 million . 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, 2018 Legacy Sequoia Sequoia Choice Freddie Mac SLST Freddie Mac K-Series Servicing Investment Total Consolidated VIEs (Dollars in Thousands) Residential loans, held-for-investment $ 519,958 $ 2,079,382 $ 1,222,669 $ — $ — $ 3,822,009 Multifamily loans, held-for-investment — — — 2,144,598 — 2,144,598 Other investments — — — — 312,688 312,688 Restricted cash 146 1,022 — — 25,363 26,531 Accrued interest receivable 822 8,988 3,926 6,595 1,091 21,422 REO 3,943 — — — — 3,943 Total Assets $ 524,869 $ 2,089,392 $ 1,226,595 $ 2,151,193 $ 339,142 $ 6,331,191 Short-term debt $ — $ — $ — $ — $ 262,740 $ 262,740 Accrued interest payable 571 7,180 2,907 6,239 483 17,380 Accrued expenses and other liabilities — 1,022 — — 18,592 19,614 Asset-backed securities issued 512,240 1,885,010 993,748 2,019,075 — 5,410,073 Total Liabilities $ 512,811 $ 1,893,212 $ 996,655 $ 2,025,314 $ 281,815 $ 5,709,807 Number of VIEs 20 6 1 3 3 33 December 31, 2017 Legacy Sequoia Sequoia Choice Freddie Mac SLST Freddie Mac K-Series Servicing Investment 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 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. Beginning in the third quarter of 2018, we consolidated the assets and liabilities of certain Freddie Mac K-Series securitization trusts resulting from our investment in subordinate securities issued by these trusts. Additionally, in the fourth quarter of 2018, we consolidated the assets and liabilities of a Freddie Mac SLST securitization trust resulting from our investment in subordinate securities issued by this trust. During the fourth quarter of 2018, we consolidated the assets and liabilities of Servicing Investment entities from our investment in servicer advance investments and excess MSRs. In each case, we maintain certain discretionary rights associated with the ownership of these investments that we determined reflected a controlling financial interest, as we have both the power to direct the activities that most significantly impact the economic performance of the VIEs and the right to receive benefits of and the obligation to absorb losses from the VIEs that could potentially be significant to the VIEs. Analysis of Unconsolidated VIEs with Continuing Involvement Since 2012, we have transferred residential loans to 44 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, 2018 and 2017 , we transferred residential loans to eight and seven 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, 2018 and 2017 . Table 4.2 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Years Ended December 31, (In Thousands) 2018 2017 Principal balance of loans transferred $ 3,188,358 $ 2,573,789 Trading securities retained, at fair value 52,859 66,321 AFS securities retained, at fair value 7,739 13,341 MSRs recognized — 7,123 The following table summarizes the cash flows during the years ended December 31, 2018 and 2017 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) 2018 2017 Proceeds from new transfers $ 3,175,900 $ 2,563,499 MSR fees received 13,417 14,302 Funding of compensating interest, net (122 ) (151 ) Cash flows received on retained securities 28,614 27,156 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 2018 and 2017 . Table 4.4 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Year Ended December 31, 2018 Year Ended December 31, 2017 At Date of Securitization MSRs Senior IO Securities Subordinate Securities MSRs Senior IO Securities Subordinate Securities Prepayment rates N/A 9 % 10 % 9 % 10 % 10 % Discount rates N/A 14 % 5 % 11 % 14 % 5 % Credit loss assumptions N/A 0.20 % 0.20 % N/A 0.25 % 0.25 % The following table presents additional information at December 31, 2018 and December 31, 2017 , 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, 2018 December 31, 2017 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 129,111 $ 101,426 Subordinate securities, classified as AFS 162,314 219,255 Mortgage servicing rights 58,572 60,980 Maximum loss exposure (1) $ 349,997 $ 381,661 Assets transferred: Principal balance of loans outstanding $ 10,580,216 $ 8,364,148 Principal balance of loans 30+ days delinquent 21,805 27,926 (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, 2018 and December 31, 2017 . Table 4.6 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood December 31, 2018 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2018 $ 58,572 $ 61,178 $ 230,247 Expected life (in years) (2) 8 7 15 Prepayment speed assumption (annual CPR) (2) 7 % 10 % 9 % Decrease in fair value from: 10% adverse change $ 1,668 $ 2,151 $ 201 25% adverse change 4,027 5,127 1,372 Discount rate assumption (2) 11 % 12 % 6 % Decrease in fair value from: 100 basis point increase $ 2,323 $ 2,190 $ 21,982 200 basis point increase 4,493 4,226 40,641 Credit loss assumption (2) N/A 0.20 % 0.20 % Decrease in fair value from: 10% higher losses N/A $ — $ 1,387 25% higher losses N/A — 3,471 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 (1) Senior securities included $61 million and $34 million of interest-only securities at December 31, 2018 and December 31, 2017 , respectively. (2) Expected life, prepayment speed assumption, discount rate assumption, and credit loss assumption presented in the tables above represent weighted averages. Analysis of Unconsolidated 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 and other investments 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, 2018 , grouped by asset type. Table 4.7 – Third-Party Sponsored VIE Summary (Dollars in Thousands) December 31, 2018 Mortgage-Backed Securities Senior $ 185,107 Mezzanine 547,249 Subordinate 428,713 Total Mortgage-Backed Securities 1,161,069 Excess MSR 15,092 Total Investments in Third-Party Sponsored VIEs $ 1,176,161 We determined that we are not the primary beneficiary of these 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, 2018
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, 2018 and December 31, 2017 . Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities December 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (In Thousands) Assets Residential loans, held-for-sale At fair value $ 1,048,690 $ 1,048,690 $ 1,427,052 $ 1,427,052 At lower of cost or fair value 111 131 893 993 Residential loans, held-for-investment 6,205,941 6,205,941 3,687,265 3,687,265 Business purpose residential loans 141,258 141,258 — — Multifamily loans 2,144,598 2,144,598 — — Trading securities 1,118,612 1,118,612 968,844 968,844 Available-for-sale securities 333,882 333,882 507,666 507,666 Servicer advance investments (1) 300,468 300,468 — — MSRs (1) 60,281 60,281 63,598 63,598 Participation in loan warehouse facility (1) 39,703 39,703 — — Excess MSRs (1) 27,312 27,312 — — Cash and cash equivalents 175,764 175,764 144,663 144,663 Restricted cash 29,313 29,313 2,144 2,144 Accrued interest receivable 47,105 47,105 27,013 27,013 Derivative assets 35,789 35,789 15,718 15,718 REO (2) 3,943 4,396 3,354 3,806 Margin receivable (2) 100,773 100,773 85,044 85,044 FHLBC stock (2) 43,393 43,393 43,393 43,393 Guarantee asset (2) 2,618 2,618 2,869 2,869 Pledged collateral (2) 42,433 42,433 42,615 42,615 Liabilities Short-term debt facilities $ 1,937,920 $ 1,937,920 $ 1,688,412 $ 1,688,412 Short-term debt - servicer advance financing 262,740 262,740 — — Accrued interest payable 42,528 42,528 18,435 18,435 Margin payable (3) 835 835 390 390 Guarantee obligation (3) 16,711 16,774 19,487 18,878 Derivative liabilities 84,855 84,855 63,081 63,081 ABS issued at fair value 5,410,073 5,410,073 1,164,585 1,164,585 FHLBC long-term borrowings 1,999,999 1,999,999 1,999,999 1,999,999 Convertible notes, net 633,196 618,271 686,759 692,369 Trust preferred securities and subordinated notes, net 138,582 102,533 138,535 103,230 (1) These investments are included in Other investments on our consolidated balance sheets. (2) These assets are included in Other assets on our consolidated balance sheets. (3) These liabilities are included in Accrued expenses and other liabilities on our consolidated balance sheets. During the years ended December 31, 2018 and 2017 , we elected the fair value option for $109 million and $47 million of residential senior securities, $545 million and $594 million of subordinate securities, and $8.38 billion and $5.64 billion of residential loans (principal balance). Additionally, during the year ended December 31, 2018, we elected the fair value option for $168 million of business purpose residential loans (principal balance), $2.13 billion of multifamily loans (principal balance), $396 million of servicer advance investments, and $25 million of excess MSRs. We anticipate electing the fair value option for all future purchases of residential loans that we intend to sell to third parties or transfer to securitizations, as well as for business purpose 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, 2018 and December 31, 2017 , 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, 2018 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 7,254,631 $ — $ — $ 7,254,631 Business purpose residential loans 141,258 — — 141,258 Multifamily loans 2,144,598 — — 2,144,598 Trading securities 1,118,612 — — 1,118,612 Available-for-sale securities 333,882 — — 333,882 Servicer advance investments 300,468 — — 300,468 MSRs 60,281 — — 60,281 Excess MSRs 27,312 — — 27,312 Derivative assets 35,789 4,665 28,211 2,913 Pledged collateral 42,433 42,433 — — FHLBC stock 43,393 — 43,393 — Guarantee asset 2,618 — — 2,618 Liabilities Derivative liabilities $ 84,855 $ 13,215 $ 70,908 $ 732 ABS issued 5,410,073 — — 5,410,073 December 31, 2017 Carrying 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 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, 2018 and December 31, 2017 . Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets Residential Loans Business Purpose Residential Loans Multifamily Loans Trading Securities AFS Securities Servicer Advance Investments MSRs Excess MSRs Guarantee Asset (In Thousands) Beginning balance - December 31, 2017 $ 5,114,317 $ — $ — $ 968,844 $ 507,666 $ — $ 63,598 $ — $ 2,869 Acquisitions 8,338,724 167,777 2,099,916 653,739 7,739 395,813 328 25,489 — Sales (5,425,168 ) — — (438,304 ) (143,644 ) — (1,077 ) — — Principal paydowns (814,122 ) (27,382 ) (1,873 ) (40,050 ) (44,446 ) (94,644 ) — — — Gains (losses) in net income, net 44,627 863 46,555 (8,436 ) 41,051 (701 ) (2,568 ) 1,823 (251 ) Unrealized losses in OCI, net — — — — (34,484 ) — — — — Other settlements, net (2) (3,747 ) — — (17,181 ) — — — — — Ending balance - December 31, 2018 $ 7,254,631 $ 141,258 $ 2,144,598 $ 1,118,612 $ 333,882 $ 300,468 $ 60,281 $ 27,312 $ 2,618 Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (continued) Liabilities Derivatives (1) ABS Issued (In Thousands) Beginning balance - December 31, 2017 $ 1,714 $ 1,164,585 Acquisitions — 4,613,168 Principal paydowns — (459,173 ) Gains (losses) in net income, net (1,214 ) 91,493 Other settlements, net (2) 1,681 — Ending balance - December 31, 2018 $ 2,181 $ 5,410,073 Assets Liabilities (In Thousands) Residential Loans Trading Securities AFS Securities MSRs Guarantee Asset Derivatives (1) ABS Issued 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 gains 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 (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 settlement of forward sale commitments and the transfer of the fair value of loan purchase commitments at the time loans are acquired to the basis of residential loans. Other settlements, net for our trading securities relates to the consolidation of the Freddie Mac K-Series entities during the second half of 2018. 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, 2018 , 2017 , and 2016 . Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the years ended December 31, 2018 , 2017 , and 2016 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, 2018 , 2017 , and 2016 Included in Net Income Included in Net Income Years Ended December 31, (In Thousands) 2018 2017 2016 Assets Residential loans at Redwood $ (17,757 ) $ 523 $ (17,370 ) Residential loans at consolidated Sequoia entities 24,799 17,727 (14,391 ) Residential loans at consolidated Freddie Mac SLST entity 21,295 — — Business purpose residential loans 445 — — Multifamily loans at consolidated Freddie Mac K-Series entities 46,555 — — Trading securities (12,256 ) 28,612 7,184 Available-for-sale securities (89 ) (1,011 ) (368 ) Servicer advance investments (702 ) — — MSRs 1,942 1,277 42,964 Excess MSRs 1,824 — — Loan purchase commitments 2,913 3,243 — Loan forward sale commitments — 2,177 — Other assets - Guarantee asset (251 ) (1,223 ) (1,605 ) Liabilities Loan purchase commitments $ (732 ) $ (3,706 ) $ (486 ) ABS issued (71,468 ) (29,187 ) 8,275 The following table presents information on assets recorded at fair value on a non-recurring basis at December 31, 2018 and December 31, 2017 . 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, 2018 and December 31, 2017 . Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Gain (Loss) for Year Ended December 31, 2018 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2018 Assets REO $ 2,225 $ — $ — $ 2,225 $ (131 ) Gain (Loss) for Year Ended December 31, 2017 Carrying 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 ) 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, 2018 , 2017 , and 2016 . Table 5.6 – Market Valuation Gains and Losses, Net Years Ended December 31, (In Thousands) 2018 2017 2016 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ 23,144 $ 31,493 $ 5,786 Single-family rental loans held-for-sale, at fair value 453 — — Residential loan purchase and forward sale commitments (1,336 ) 37,880 25,613 Commercial loans, at fair value — — 433 Sequoia securities — — 1,455 Risk management derivatives, net 34,739 (17,529 ) 3,158 Total mortgage banking activities, net (1) $ 57,000 $ 51,844 $ 36,445 Investment Fair Value Changes, Net Residential loans held-for-investment at Redwood $ (29,573 ) $ (5,765 ) $ (23,102 ) Residential bridge loans held-for-investment (29 ) — — Trading securities (8,055 ) 39,526 9,666 Commercial loans held-for-sale — 300 (307 ) Servicer advance investments (701 ) — — Excess MSRs 1,823 — — Net investments in Legacy Sequoia entities (2) (1,016 ) (8,027 ) (4,200 ) Net investments in Sequoia Choice entities (2) 443 (323 ) — Net investment in Freddie Mac SLST entity (2) 1,271 — — Net investments in Freddie Mac K-Series entities (2) 931 — — Risk-sharing investments (434 ) (1,484 ) (1,151 ) Risk management derivatives, net 9,740 (12,842 ) (9,112 ) Impairments on AFS securities (89 ) (1,011 ) (368 ) Total investment fair value changes, net $ (25,689 ) $ 10,374 $ (28,574 ) Other Income, Net MSRs $ (2,508 ) $ (10,166 ) $ (36,372 ) Risk management derivatives, net (4,734 ) (568 ) 15,584 Total other income, net (3) $ (7,242 ) $ (10,734 ) $ (20,788 ) Total Market Valuation Gains (Losses), Net $ 24,069 $ 51,484 $ (12,917 ) (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) Other income, net presented above does not include net MSR fee income or provisions for repurchases for MSRs, as these amounts do not represent market valuation adjustments. Valuation Policy We maintain policies that specify 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, 2018 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 $ 2,738,346 Whole loan spread to TBA price $ 1.89 - $ 2.52 $ 2.21 Whole loan spread to swap rate 70 - 220 bps 200 bps Jumbo hybrid loans 396,274 Prepayment rate (annual CPR) 15 - 15 % 15 % Whole loan spread to swap rate 50 - 125 bps 86 bps Jumbo loans committed to sell 298,002 Whole loan committed sales price $ 100.69 - $ 101.66 $ 100.70 Loans held by Legacy Sequoia (1) 519,958 Liability price N/A N/A Loans held by Sequoia Choice (1) 2,079,382 Liability price N/A N/A Loans held by Freddie Mac SLST 1,222,669 Liability price N/A N/A Business purpose residential loans: Single-family rental loans 28,460 IO discount rate 12 - 12 % 12 % Prepayment rate (annual CPR) 2 - 10 % 3 % Senior credit spread 115 - 115 bps 115 bps Subordinate credit spread 165 - 994 bps 302 bps Senior credit support 32 - 32 % 32 % Residential bridge loans 112,798 Discount rate 7 8 % 7 % Multifamily loans held by Freddie Mac K-Series (1) 2,144,598 Liability price N/A N/A Trading and AFS securities 1,452,494 Discount rate 3 - 14 % 6 % Prepayment rate (annual CPR) — - 60 % 10 % Default rate — - 27 % 2 % Loss severity — - 40 % 21 % Servicer advance investments 300,468 Discount rate 5 - 5 % 5 % Prepayment rate (annual CPR) 8 - 16 % 14 % Expected remaining life (2) 1 - 1 year 1 year Mortgage servicing amount 7 - 14 bps 10 bps MSRs 60,281 Discount rate 11 - 29 % 11 % Prepayment rate (annual CPR) 4 - 29 % 7 % Per loan annual cost to service $ 82 - $ 82 $ 82 Excess MSRs 27,312 Discount rate 12 - 19 % 17 % Prepayment rate (annual CPR) 8 - 15 % 11 % Excess mortgage servicing amount 7 - 18 bps 11 bps Guarantee asset 2,618 Discount rate 11 - 11 % 11 % Prepayment rate (annual CPR) 8 - 8 % 8 % REO 2,225 Loss severity 2 - 50 % 18 % Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments (continued) December 31, 2018 Fair Value Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average Assets (continued) Loan purchase commitments, net $ 2,181 MSR multiple 0.8 - 4.9 x 2.7 x Pull-through rate 10 - 98 % 69 % Whole loan spread to TBA price $ 1.89 - $ 2.52 $ 2.51 Whole loan spread to swap rate - fixed rate 70 - 220 bps 198 bps Prepayment rate (annual CPR) 15 - 15 % 15 % Whole loan spread to swap rate - hybrid 60 - 100 bps 77 bps Liabilities ABS issued (1) At consolidated Sequoia entities 2,397,250 Discount rate 4 - 15 % 4 % Prepayment rate (annual CPR) 8 - 50 % 18 % Default rate — - 14 % 2 % Loss severity 20 - 44 % 21 % At consolidated Freddie Mac SLST entity 993,748 Discount rate 3 - 4 % 3 % Prepayment rate (annual CPR) 6 - 6 % 6 % Default rate 2 - 2 % 2 % Loss severity 30 - 30 % 30 % At consolidated Freddie Mac K-Series entities 2,019,075 Discount rate 3 - 9 % 3 % Prepayment rate (annual CPR) — - — % — % Default rate 1 - 1 % 1 % Loss severity 20 - 20 % 20 % (1) The fair value of the loans held by consolidated 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) Represents the estimated average duration of outstanding servicer advances at a given point in time (not taking into account new advances made with respect to the pool). 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 and 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 and multifamily loans at consolidated entities We have elected to account for our consolidated 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 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 CFEs. Business purpose residential loans Business purpose residential loans include single-family rental loans and residential bridge loans 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. Prices for our single-family rental loans are determined using market comparable information. Significant inputs obtained from market activity include indicative spreads to indexed swap rates for senior and subordinate MBS, IO MBS discount rates, senior credit support levels, and assumed future prepayment rates (Level 3). These assets would generally decrease in value based upon an increase in the credit spread or prepayment speed assumptions. Prices for our residential bridge loans are determined using discounted cash flow modeling, which incorporates a primary significant unobservable input of discount rate. These assets would generally decrease in value based upon an increase in the discount rate. Real estate securities Real estate securities include residential, multifamily, and other mortgage-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 and loss severity. The estimated fair value of our securities would generally decrease based upon an increase in discount rate, default rates, loss severities, or a decrease in prepayment rates. 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, 2018 , we received dealer price indications on 85% of our securities, representing 93% 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 residential jumbo and single-family rental loans are estimated based on the estimated fair values of the underlying loans (as described in " Residential loans at Redwood " and " Business Purpose Residential Loans" above). In addition, fair values 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). Servicer advance investments Estimated fair values for servicer advance investments are determined through internal pricing models that estimate future cash flows and utilize certain significant inputs that are considered unobservable and are therefore Level 3 in nature. Our estimations of cash flows include the combined cash flows of all of the components that comprise the servicer advance investments: existing advances, the requirement to purchase future advances, the recovery of advances, and the right to a portion of the associated mortgage servicing fee. The valuation technique is based on discounted cash flows. Significant inputs used in the valuations included prepayment rate (of the loans underlying the investments), mortgage servicing amount (the amount of underlying servicing income expected to be received), servicer advance WAL (the weighted-average expected remaining life of servicer advances), and discount rate. These assets would generally decrease in value based upon an increase in prepayment rates, an increase in servicer advance WAL, or an increase in discount rate, or a decrease in mortgage servicing amount. 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. Excess MSRs Estimated fair values for excess MSRs are determined through internal pricing models that estimate future cash flows and utilize certain significant inputs that are considered unobservable and are therefore Level 3 in nature. The valuation technique is based on discounted cash flows. Significant inputs used in the valuations included prepayment rate (of the loans underlying the investments), excess mortgage servicing amount (the amount of excess servicing income expected to be received), and discount rate. These assets would generally decrease in value based upon an increase in prepayment rates or discount rate, or a decrease in excess mortgage servicing amount. 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, cash held at Servicing Investment entities, 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). Real estate owned Real estate owned ("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). Short-term debt Short-term debt includes our credit facilities for residential and business purpose residential loans and real estate securi

Residential Loans

Residential Loans	12 Months Ended
	Dec. 31, 2018
Residential loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
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 and Freddie Mac SLST entities at December 31, 2018 and December 31, 2017 . Table 6.1 – Classifications and Carrying Values of Residential Loans December 31, 2018 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia Choice SLST Total Held-for-sale At fair value $ 1,048,690 $ — $ — $ — $ 1,048,690 At lower of cost or fair value 111 — — — 111 Total held-for-sale 1,048,801 — — — 1,048,801 Held-for-investment at fair value 2,383,932 519,958 2,079,382 1,222,669 6,205,941 Total Residential Loans $ 3,432,733 $ 519,958 $ 2,079,382 $ 1,222,669 $ 7,254,742 December 31, 2017 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia Choice SLST 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 At December 31, 2018 , we owned mortgage servicing rights associated with $2.62 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, 2018 , we owned 1,484 loans held-for-sale at fair value with an aggregate unpaid principal balance of $1.03 billion and a fair value of $1.05 billion , compared to 2,009 loans with an aggregate unpaid principal balance of $1.41 billion and a fair value of $1.43 billion at December 31, 2017 . At December 31, 2018 , one of these loans with a fair value of $0.6 million was greater than 90 days delinquent and none of these loans were in foreclosure. 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. During the years ended December 31, 2018 and 2017 , we purchased $7.07 billion and $5.64 billion (principal balance) of loans, respectively, for which we elected the fair value option, and we sold $7.11 billion and $4.21 billion (principal balance) of loans, respectively, for which we recorded net market valuation gain s of $23 million and $31 million , respectively, through Mortgage banking activities, net on our consolidated statements of income. At December 31, 2018 , loans held-for-sale with a market value of $935 million were pledged as collateral under short-term borrowing agreements. At Lower of Cost or Fair Value At December 31, 2018 and December 31, 2017 , we held two and four residential loans, respectively, at the lower of cost or fair value with $0.1 million and $1 million in outstanding principal balance, respectively, and carrying values of $0.1 million and $1 million , respectively. At December 31, 2018 , none of these loans were greater than 90 days delinquent or in foreclosure. At December 31, 2017 , 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, 2018 , we owned 3,296 held-for-investment loans at Redwood with an aggregate unpaid principal balance of $2.39 billion and a fair value of $2.38 billion , compared to 3,292 loans with an aggregate unpaid principal balance of $2.41 billion and a fair value of $2.43 billion at December 31, 2017 . At December 31, 2018 , two of these loans with a total fair value of $1 million were greater than 90 days delinquent and none of these loans were in foreclosure. At December 31, 2017 , none of these loans were greater than 90 days delinquent or in foreclosure. During the years ended December 31, 2018 and 2017 , we transferred loans with a fair value of $286 million and $600 million , respectively, from held-for-sale to held-for-investment. During the years ended December 31, 2018 and 2017 , we transferred loans with a fair value of $16 million and $99 million , respectively, from held-for-investment to held-for-sale. During the year s ended December 31, 2018 and 2017 , we recorded net market valuation loss es of $30 million and $5 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, 2018 , loans with a fair value of $2.38 billion were pledged as collateral under a borrowing agreement with the FHLBC. The outstanding loans held-for-investment at Redwood at December 31, 2018 were prime-quality, first-lien loans, of which 96% were originated between 2013 and 2018, and 4% were originated in 2012 and prior years. The weighted average Fair Isaac Corporation ("FICO") score of borrowers backing these loans was 768 (at origination) and the weighted average loan-to-value ("LTV") ratio of these loans was 66% (at origination). At December 31, 2018 , these loans were comprised of 87% fixed-rate loans with a weighted average coupon of 4.12% , and the remainder were hybrid or ARM loans with a weighted average coupon of 4.23% . At Consolidated Legacy Sequoia Entities At December 31, 2018 , we consolidated 2,641 held-for-investment loans at consolidated Legacy Sequoia entities, with an aggregate unpaid principal balance of $545 million and a fair value of $520 million , as compared to 3,178 loans at December 31, 2017 , with an aggregate unpaid principal balance of $698 million and a fair value of $633 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, 2018 and December 31, 2017 , the unpaid principal balance of loans at consolidated Sequoia entities delinquent greater than 90 days was $14 million and $25 million , respectively, of which the unpaid principal balance of loans in foreclosure was $5 million and $10 million , respectively. During the years ended December 31, 2018 and 2017 , we recorded net market valuation gain s of $37 million and $23 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, 2018 , we consolidated 2,800 held-for-investment loans at consolidated Sequoia Choice entities, with an aggregate unpaid balance of $2.04 billion and a fair value of $2.08 billion , as compared to 806 loans a t December 31, 2017 , with an aggregate unpaid principal balance of $605 million and a fair value of $620 million . At origination, the weighted average FICO score of borrowers backing these loans was 744 , the weighted average LTV ratio of these loans was 75% , and the loans were all first lien and prime-quality. At December 31, 2018 , three of these loans with an unpaid principal balance of $2 million were greater than 90 days delinquent and none of these loans were in foreclosure. At December 31, 2017 , none of these loans were greater than 90 days delinquent or in foreclosure. During the years ended December 31, 2018 and 2017 , we transferred loans with a fair value of $1.78 billion and $646 million , respectively, from held-for-sale to held-for-investment associated with Choice securitizations. During the years ended December 31, 2018 and 2017 , we recorded net market valuation loss es of $13 million and $5 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 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. At Consolidated Freddie Mac SLST Entity During the fourth quarter of 2018, we invested in subordinate securities issued by a Freddie Mac SLST securitization trust and were required to consolidate the underlying seasoned re-performing and non-performing residential loans owned at this entity for financial reporting purposes in accordance with GAAP. At securitization, which occurred during the fourth quarter of 2018, each of these mortgage loans is a fully amortizing, fixed- or step-rate, first-lien loan that has been modified. At December 31, 2018 , we consolidated 7,900 held-for-investment loans at the consolidated Freddie Mac SLST entity, with an aggregate unpaid balance of $1.31 billion and a fair value of $1.22 billion . We did no t own or consolidate any residential loans held at the Freddie Mac SLST entity a t December 31, 2017 . At securitization, which occurred during the fourth quarter of 2018, the weighted average FICO score of borrowers backing these loans was 598 and the weighted average LTV ratio of these loans was 68% . At December 31, 2018 , 306 of these loans with an unpaid principal balance of $51 million were greater than 90 days delinquent and none of these loans were in foreclosure. During the year ended December 31, 2018 , we recorded a net market valuation gain of $21 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 the Freddie Mac SLST securitization . The net impact to our income statement associated with our economic investment in the Freddie Mac SLST securitization entity 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, 2018 and December 31, 2017 . Table 6.2 – Geographic Concentration of Residential Loans December 31, 2018 Geographic Concentration Held-for-Sale Held-for- Held-for- Investment at Sequoia Choice Held-for-Investment at Freddie Mac SLST Held-for- California 40 % 19 % 39 % 12 % 47 % Washington 10 % 1 % 7 % 2 % 5 % Texas 6 % 6 % 8 % 3 % 8 % Florida 4 % 13 % 4 % 10 % 5 % New Jersey 2 % 4 % 1 % 7 % 1 % New York 3 % 10 % 5 % 10 % 3 % Other states (none greater than 5%) 35 % 47 % 36 % 56 % 31 % Total 100 % 100 % 100 % 100 % 100 % December 31, 2017 Geographic Concentration Held-for-Sale Held-for- Held-for- Held-for-Investment at Freddie Mac SLST 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 % 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, 2018 and December 31, 2017 . Table 6.3 – Product Types and Characteristics of Residential Loans December 31, 2018 (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 12 2.88 % to 4.88% 2043-09 - 2046-01 $ 2,190 $ 59 $ — $ 251 to $500 59 2.63 % to 5.75% 2043-08 - 2048-08 23,986 — — $ 501 to $750 116 2.88 % to 5.75% 2043-03 - 2048-08 73,360 692 — $ 751 to $1,000 129 2.88 % to 6.38% 2043-09 - 2048-09 111,879 — — over $1,000 69 3.00 % to 5.50% 2040-10 - 2048-10 92,151 1,112 — 385 303,566 1,863 — Fixed loans $ — to $250 36 3.30 % to 5.08% 2028-11 - 2047-12 6,737 — — $ 251 to $500 679 2.75 % to 5.75% 2027-09 - 2048-11 292,730 — — $ 501 to $750 1,213 2.75 % to 6.75% 2027-10 - 2048-11 746,503 1,320 1,224 $ 751 to $1,000 599 2.75 % to 6.13% 2027-07 - 2048-11 517,075 903 — over $1,000 384 2.80 % to 5.88% 2031-04 - 2048-11 518,719 2,000 — 2,911 2,081,764 4,223 1,224 Total HFI at Redwood: 3,296 $ 2,385,330 $ 6,086 $ 1,224 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,988 1.25 % to 5.50% 2019-02 - 2035-11 $ 206,490 $ 7,179 $ 3,952 $ 251 to $500 424 1.25 % to 5.63% 2023-05 - 2036-05 148,154 5,989 4,368 $ 501 to $750 110 1.63 % to 4.50% 2022-01 - 2035-02 67,471 1,309 1,880 $ 751 to $1,000 61 1.63 % to 4.38% 2027-11 - 2036-03 51,918 791 2,561 over $1,000 37 1.63 % to 4.38% 2027-12 - 2036-05 61,710 1,023 1,194 2,620 535,743 16,291 13,955 Hybrid ARM loans: $ — to $250 4 4.63 % to 5.00% 2033-08 - 2034-06 769 — — $ 251 to $500 10 2.63 % to 4.88% 2033-07 - 2034-06 3,675 — — $ 501 to $750 6 4.38 % to 5.00% 2033-08 - 2034-11 3,667 — — over $1,000 1 4.88 % to 4.88% 2033-09 - 2033-09 1,355 — — 21 9,466 — — Total HFI at Legacy Sequoia: 2,641 $ 545,209 $ 16,291 $ 13,955 Held-for-Investment at Sequoia Choice: Fixed loans: $ — to $250 29 2.75 % to 5.63% 2038-03 - 2048-09 $ 5,484 $ — $ — $ 251 to $500 336 3.13 % to 6.13% 2037-12 - 2048-09 149,917 1,419 925 $ 501 to $750 1,363 3.13 % to 6.38% 2037-02 - 2048-09 841,692 3,633 — $ 751 to $1,000 761 3.25 % to 6.50% 2035-04 - 2048-09 659,845 3,549 980 over $1,000 311 3.13 % to 5.88% 2038-01 - 2048-09 384,072 2,188 — Total HFI at Sequoia Choice: 2,800 $ 2,041,010 $ 10,789 $ 1,905 Table 6.3 – Product Types and Characteristics of Residential Loans (continued) December 31, 2018 (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 Freddie Mac SLST: Fixed loans: $ — to $250 6,404 2.00 % to 10.50% 2018-12 - 2058-10 $ 830,118 $ 130,608 $ 30,686 $ 251 to $500 1,469 2.00 % to 7.38% 2033-08 - 2058-11 466,222 66,706 19,319 $ 501 to $750 27 2.00 % to 5.88% 2050-02 - 2057-12 14,634 1,631 523 Total HFI at Freddie Mac SLST: 7,900 $ 1,310,974 $ 198,945 $ 50,528 Held-for-Sale: ARM loans $ — to $250 2 4.00 % to 4.13% 2032-11 - 2032-11 $ 150 $ — $ — Hybrid ARM loans $ 251 to $500 8 3.88 % to 5.38% 2048-05 - 2048-12 3,795 — — $ 501 to $750 50 3.63 % to 7.38% 2048-01 - 2049-01 31,759 — — $ 751 to $1,000 27 3.88 % to 5.25% 2048-02 - 2049-01 23,478 — — over $1,000 23 3.50 % to 5.50% 2047-04 - 2048-12 28,112 — — 108 87,144 — — Fixed loans $ — to $250 6 4.38 % to 5.75% 2048-08 - 2048-11 1,180 — — $ 251 to $500 188 3.13 % to 6.38% 2029-04 - 2049-01 88,204 — — $ 501 to $750 788 3.75 % to 7.00% 2033-11 - 2049-01 475,935 559 747 $ 751 to $1,000 295 3.25 % to 6.63% 2033-12 - 2049-01 255,429 — — over $1,000 99 3.75 % to 6.13% 2032-10 - 2049-01 126,392 — — 1,376 947,140 559 747 Total Held-for-Sale 1,486 $ 1,034,434 $ 559 $ 747 Table 6.3 – Product Types and Characteristics of Residential Loans (continued) 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: $ — 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 $ — Table 6.3 – Product Types and Characteristics of Residential Loans (continued) 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-Sale: ARM loans $ — to $250 2 2.88 % to 3.00% 2032-11 - 2032-11 $ 158 $ — $ — $ 251 to $500 1 1.50 % to 1.50% 2033-10 - 2033-10 286 — — 3 444 — — Hybrid ARM loans $ 251 to $500 8 3.25 % to 3.88% 2047-07 - 2047-12 3,708 — — $ 501 to $750 44 3.00 % to 3.88% 2037-06 - 2048-01 28,165 — — $ 751 to $1,000 19 2.88 % to 4.00% 2044-11 - 2047-12 16,675 — — over $1,000 22 3.25 % to 4.00% 2044-08 - 2047-12 30,336 — — 93 78,884 — — Fixed loans $ — to $250 1 4.40 % to 4.40% 2045-07 - 2045-07 132 — — $ 251 to $500 330 3.25 % to 5.63% 2030-11 - 2048-01 153,021 495 459 $ 501 to $750 1,005 2.88 % to 6.00% 2029-08 - 2048-01 613,647 540 — $ 751 to $1,000 423 3.00 % to 6.25% 2029-05 - 2048-01 370,379 878 — over $1,000 158 3.25 % to 5.75% 2030-11 - 2048-01 192,672 — — 1,917 1,329,851 1,913 459 Total Held-for-Sale 2,013 $ 1,409,179 $ 1,913 $ 459 (1) Rate is net of servicing fee for consolidated loans for which we do not own the MSR.

Business Purpose Residential Lo

Business Purpose Residential Loans	12 Months Ended
	Dec. 31, 2018
Business purpose residential loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Business Purpose Residential Loans	Business Purpose Residential Loans Our business purpose residential loans include single-family rental loans and residential bridge loans. At December 31, 2018 , all of our outstanding business purpose residential loans were acquired from a related party, 5 Arches LLC ("5 Arches"). See Note 10 for information on our equity investment in 5 Arches. The following table summarizes the classifications and carrying values of the business purpose residential loans owned at Redwood at December 31, 2018 and December 31, 2017 . Table 7.1 – Classifications and Carrying Values of Business Purpose Residential Loans (In Thousands) December 31, 2018 December 31, 2017 Single-family rental loans, held-for-sale at fair value $ 28,460 $ — Residential bridge loans, held-for-investment at fair value 112,798 — Total Business Purpose Residential Loans $ 141,258 $ — Single-Family Rental Loans Held-for-Sale at Fair Value At December 31, 2018 , we owned 11 single-family rental loans purchased from 5 Arches with an aggregate unpaid principal balance of $28 million and a fair value of $28 million . At December 31, 2018 , none of these loans were greater than 90 days delinquent or in foreclosure. During the year ended December 31, 2018 , we purchased $28 million (principal balance) of loans, for which we elected the fair value option, and we did no t sell any loans. During the year ended December 31, 2018 , we recorded a net market valuation gain of $0.3 million on single-family rental loans held-for-sale at fair value through Mortgage banking activities, net on our consolidated statements of income. At December 31, 2018 , loans held-for-sale with a market value of $28 million were pledged as collateral under short-term borrowing agreements. The outstanding single-family rental loans held-for-sale at December 31, 2018 were first-lien, fixed-rate loans with maturities of five , seven , or ten years. At December 31, 2018 , the weighted average coupon of our single-family rental loans was 5.90% and the weighted average loan term was seven years. At origination, the weighted average LTV ratio of these loans was 64% and the weighted average debt service coverage ratio ("DSCR") was 1.29 . Residential Bridge Loans Held-for-Investment at Fair Value At December 31, 2018 , we owned 157 residential bridge loans held-for-investment with an aggregate unpaid principal balance of $112 million and a fair value of $113 million . At December 31, 2018 , seven of these loans with an aggregate unpaid principal balance of $12 million were greater than 90 days delinquent and none of these loans were in foreclosure. During the year ended December 31, 2018 , we purchased $140 million (principal balance) of loans, and we did no t sell any loans. During the year ended December 31, 2018 , we recorded a net market valuation loss of less than $0.1 million on residential bridge loans held-for-investment at fair value through Investment fair value changes, net on our consolidated statements of income. At December 31, 2018 , loans with a market value of $98 million were pledged as collateral under short-term borrowing agreements. The outstanding residential bridge loans held-for-investment at December 31, 2018 were first-lien, fixed-rate, interest-only loans with a weighted average coupon of 9.16% and original maturities of 6 to 24 months. At origination, the weighted average FICO score of borrowers backing these loans was 698 , the weighted average LTV ratio of these loans was 76% , and the estimated rehabilitated LTV ratio was 59% . Business Purpose Residential Loan Characteristics The following table presents the geographic concentration of business purpose residential loans recorded on our consolidated balance sheets at December 31, 2018 . Table 7.2 – Geographic Concentration of Business Purpose Residential Loans December 31, 2018 Geographic Concentration Single-Family Rental Residential Bridge Florida 69 % 7 % Texas 14 % — % California — % 79 % Utah — % 5 % Other states (none greater than 5%) 17 % 9 % Total 100 % 100 % T he following table displays the loan product type and accompanying loan characteristics of business purpose residential loans recorded on our consolidated balance sheets at December 31, 2018 . Table 7.3 – Product Types and Characteristics of Business Purpose Residential Loans December 31, 2018 (In Thousands) Loan Balance Number of Loans Interest Rate Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Single-Family Rental: Fixed loans: $ 251 to $500 2 6.79 % to 7.47% 2028-08 - 2028-12 $ 787 $ — $ — $ 501 to $750 2 6.12 % to 7.25% 2023-09 - 2028-11 1,252 — — $ 751 to $1,000 3 5.91 % to 6.58% 2023-11 - 2028-12 2,488 — — over $1,000 4 5.62 % to 6.94% 2023-10 - 2025-12 23,039 — — Total Single-Family Rental: 11 $ 27,566 $ — $ — Residential Bridge: Fixed loans: $ — to $250 50 8.00 % to 12.00% 2018-07 - 2020-05 $ 7,941 $ 262 $ 695 $ 251 to $500 38 8.00 % to 10.00% 2018-09 - 2019-12 13,297 636 469 $ 501 to $750 21 7.50 % to 10.00% 2019-01 - 2019-12 12,410 1,769 — $ 751 to $1,000 19 7.50 % to 10.00% 2019-04 - 2019-12 16,937 840 — over $1,000 29 8.00 % to 10.00% 2018-09 - 2019-12 61,775 1,484 10,970 Total Residential Bridge: 157 $ 112,360 $ 4,991 $ 12,134

Multifamily Loans

Multifamily Loans	12 Months Ended
	Dec. 31, 2018
Multifamily loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Multifamily Loans	Multifamily Loans During the third and fourth quarters of 2018, we invested in multifamily subordinate securities issued by three Freddie Mac K-Series securitization trusts and were required to consolidate the underlying multifamily loans owned at these entities for financial reporting purposes in accordance with GAAP. At December 31, 2018 , we consolidated 162 held-for-investment multifamily loans, with an aggregate unpaid balance of $2.13 billion and a fair value of $2.14 billion . We did no t own or consolidate any multifamily loans at December 31, 2017. The outstanding multifamily loans held-for-investment at the Freddie Mac K-Series entities at December 31, 2018 were first-lien, fixed-rate loans that were originated in 2015 and 2016 and had original loan terms of seven to ten years and an original weighted average LTV ratio of 69% . At December 31, 2018 , the weighted average coupon of these multifamily loans was 4.16% and the weighted average remaining loan term was seven years. At December 31, 2018 , none of these loans were greater than 90 days delinquent or in foreclosure. During the year ended December 31, 2018 , we recorded a net market valuation gain of $47 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 the securitizations . The net impact to our income statement associated with our economic investment in the securities of the Freddie Mac K-Series securitization entities is presented in Note 5. Multifamily Loan Characteristics The following table presents the geographic concentration of multifamily loans recorded on our consolidated balance sheets at December 31, 2018 . Table 8.1 – Geographic Concentration of Multifamily Loans Geographic Concentration December 31, 2018 California 11 % Texas 9 % Arizona 8 % Georgia 6 % Other states (none greater than 5%) 66 % Total 100 % T he following table displays the loan product type and accompanying loan characteristics of multifamily loans recorded on our consolidated balance sheets at December 31, 2018 . Table 8.2 – Product Types and Characteristics of Multifamily Loans December 31, 2018 (In Thousands) Loan Balance Number of Loans Interest Rate Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Fixed loans: $ 1,000 to $10,000 70 3.29 % to 4.73% 2023-02 - 2027-01 $ 394,373 $ — $ — $ 10,001 to $20,000 66 3.54 % to 4.61% 2023-09 - 2027-01 960,992 — — $ 20,001 to $30,000 16 3.65 % to 4.72% 2024-01 - 2026-12 373,036 — — $ 30,001 to $40,000 7 3.62 % to 4.71% 2025-11 - 2026-06 244,074 — — over $40,000 3 3.74 % to 4.18% 2024-10 - 2026-06 154,223 — — Total: 162 $ 2,126,698 $ — $ —

Real Estate Securities

Real Estate Securities	12 Months Ended
	Dec. 31, 2018
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, 2018 and December 31, 2017 . Table 9.1 – Fair Values of Real Estate Securities by Type (In Thousands) December 31, 2018 December 31, 2017 Trading $ 1,118,612 $ 968,844 Available-for-sale 333,882 507,666 Total Real Estate Securities $ 1,452,494 $ 1,476,510 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. Mezzanine securities are interests that are generally subordinate to senior securities in their rights to receive cash flows, and have subordinate securities below them that are first to absorb losses. Most of our mezzanine classified securities were initially rated AA through BBB- and issued in 2012 or later. Subordinate securities are all interests below mezzanine. 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, 2018 and December 31, 2017 . Table 9.2 – Trading Securities by Position and Collateral Type (In Thousands) December 31, 2018 December 31, 2017 Senior $ 158,670 $ 69,974 Mezzanine 610,819 563,475 Subordinate 349,123 335,395 Total Trading Securities $ 1,118,612 $ 968,844 We elected the fair value option for certain securities and classify them as trading securities. Our trading securities include both residential and multifamily securities. At December 31, 2018 , trading securities with a carrying value of $747 million as well as $130 million , $229 million , and $18 million of securities we owned that were issued by consolidated Sequoia Choice, Freddie Mac SLST, and Freddie Mac K-Series securitizations, respectively, were pledged as collateral under short-term borrowing agreements. See Note 13 for additional information on short-term debt. At December 31, 2018 and 2017 , our senior trading securities included $82 million and $70 million of interest-only securities, respectively, for which there is no principal balance, and the remaining unpaid principal balance of our senior trading securities was $78 million and zero , respectively. Our interest-only securities included $43 million and $15 million of A-IO-S securities at December 31, 2018 and 2017 , respectively, which are securities we retained from certain of our Sequoia securitizations that represent certificated servicing strips. At December 31, 2018 and 2017 , our mezzanine and subordinate trading securities had an unpaid principal balance of $1.08 billion and $943 million , respectively. At December 31, 2018 and 2017 , the fair value of our mezzanine and subordinate securities was $960 million and $899 million , respectively, and included $238 million and $301 million , respectively, of Agency residential mortgage credit risk transfer (or "CRT") securities, $68 million and $68 million , respectively, of Sequoia securities, $225 million and $206 million , respectively, of other third party residential securities, and $429 million and $324 million , respectively, of third-party commercial/multifamily securities. During the year s ended December 31, 2018 and 2017 , we acquired $688 million and $661 million (principal balance), respectively, of securities for which we elected the fair value option and classified as trading, and sold $415 million and $132 million , respectively, of such securities. During the year s ended December 31, 2018 and 2017 , we recorded a net market valuation loss of $8 million and a net market valuation gain of $40 million , respectively, on trading securities, included in Investment fair value changes, 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, 2018 and December 31, 2017 . Table 9.3 – Available-for-Sale Securities by Position and Collateral Type (In Thousands) December 31, 2018 December 31, 2017 Senior $ 87,615 $ 179,864 Mezzanine 36,407 92,002 Subordinate 209,860 235,800 Total AFS Securities $ 333,882 $ 507,666 At December 31, 2018 and December 31, 2017 , all of our available-for-sale securities were comprised of residential mortgage-backed securities. At December 31, 2018 , AFS securities with a carrying value of $98 million were pledged as collateral under short-term borrowing agreements. See Note 13 for additional information on short-term debt. During the years ended December 31, 2018 and 2017 , we purchased $8 million and $40 million of AFS securities, respectively, and sold $144 million and $90 million of AFS securities, respectively, which resulted in net realized gains of $27 million and $14 million , respectively. We often purchase AFS securities at a discount to their outstanding principal balances. To the extent we purchase an AFS security that has a likelihood of incurring a loss, we do not amortize into income the portion of the purchase discount that we do not expect to collect due to the inherent credit risk of the security. We may also expense a portion of our investment in the security to the extent we believe that principal losses will exceed the purchase discount. We designate any amount of unpaid principal balance that we do not expect to receive, and thus do not expect to earn or recover, as a credit reserve on the security. Any remaining net unamortized discounts or premiums on the security are amortized into income over time using the effective yield method. At December 31, 2018 , there were no AFS securities with contractual maturities less than five years , $2 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, 2018 and December 31, 2017 . Table 9.4 – Carrying Value of AFS Securities December 31, 2018 (In Thousands) Senior Mezzanine Subordinate Total Principal balance $ 91,736 $ 36,852 $ 302,524 $ 431,112 Credit reserve (7,790 ) — (33,580 ) (41,370 ) Unamortized discount, net (18,460 ) (3,697 ) (129,043 ) (151,200 ) Amortized cost 65,486 33,155 139,901 238,542 Gross unrealized gains 22,178 3,252 70,458 95,888 Gross unrealized losses (49 ) — (499 ) (548 ) Carrying Value $ 87,615 $ 36,407 $ 209,860 $ 333,882 December 31, 2017 (In Thousands) Senior Mezzanine Subordinate Total Principal balance $ 189,125 $ 91,471 $ 327,549 $ 608,145 Credit reserve (8,756 ) — (37,793 ) (46,549 ) Unamortized discount, net (44,041 ) (9,407 ) (130,305 ) (183,753 ) Amortized cost 136,328 82,064 159,451 377,843 Gross unrealized gains 44,771 9,938 76,481 131,190 Gross unrealized losses (1,235 ) — (132 ) (1,367 ) Carrying Value $ 179,864 $ 92,002 $ 235,800 $ 507,666 The following table presents the changes for the years ended December 31, 2018 and 2017 , in unamortized discount and designated credit reserves on residential AFS securities. Table 9.5 – Changes in Unamortized Discount and Designated Credit Reserves on AFS Securities Year Ended December 31, 2018 Year Ended December 31, 2017 Credit Unamortized Credit Unamortized (In Thousands) Beginning balance $ 46,549 $ 183,753 $ 47,473 $ 198,112 Amortization of net discount — (14,098 ) — (18,795 ) Realized credit losses (2,165 ) — (4,187 ) — Acquisitions 6,315 2,716 9,118 13,080 Sales, calls, other (1,850 ) (28,739 ) (3,404 ) (12,106 ) Impairments 89 — 1,011 — Transfers to (release of) credit reserves, net (7,568 ) 7,568 (3,462 ) 3,462 Ending Balance $ 41,370 $ 151,200 $ 46,549 $ 183,753 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, 2018 and December 31, 2017 . Table 9.6 – 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, 2018 $ 12,923 $ (499 ) $ 12,424 $ 7,464 $ (49 ) $ 7,415 December 31, 2017 8,637 (132 ) 8,505 28,557 (1,235 ) 27,322 At December 31, 2018 , after giving effect to purchases, sales, and extinguishment due to credit losses, our consolidated balance sheet included 128 AFS securities, of which seven were in an unrealized loss position and three were in a continuous unrealized loss position for 12 consecutive months or longer. At December 31, 2017 , 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. Evaluating AFS Securities for Other-than-Temporary Impairments Gross unrealized losses on our AFS securities were $1 million at December 31, 2018 . 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, 2018 , 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, 2018 , other-than-temporary impairments related to our AFS securities were $1 million , of which $0.1 million were recognized through our consolidated statements of income and $1 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, 2018 . Table 9.7 – Significant Valuation Assumptions December 31, 2018 Range for Securities Prepayment rates 6 % - 8% Projected losses 0.20 % - 1% 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, 2018 , 2017 , and 2016 for which a portion of an OTTI was recognized in other comprehensive income. Table 9.8 – Activity of the Credit Component of Other-than-Temporary Impairments Years Ended December 31, (In Thousands) 2018 2017 2016 Balance at beginning of period $ 21,037 $ 28,261 $ 28,277 Additions Initial credit impairments 76 178 346 Subsequent credit impairments — 47 8 Reductions Securities sold, or expected to sell (1,218 ) (4,898 ) (261 ) Securities with no outstanding principal at period end (1,243 ) (2,551 ) (109 ) Balance at End of Period $ 18,652 $ 21,037 $ 28,261 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, 2018 , 2017 , and 2016 . Table 9.9 – Gross Realized Gains and Losses on AFS Securities Years Ended December 31, (In Thousands) 2018 2017 2016 Gross realized gains - sales $ 27,127 $ 13,927 $ 23,598 Gross realized gains - calls 43 677 1,210 Gross realized losses - sales (129 ) — (2,293 ) Gross realized losses - calls — (497 ) — Total Realized Gains on Sales and Calls of AFS Securities, net $ 27,041 $ 14,107 $ 22,515

Other Investments

Other Investments	12 Months Ended
	Dec. 31, 2018
Investments, All Other Investments [Abstract]
Other Investments	Other Investments Other investments at December 31, 2018 and December 31, 2017 are summarized in the following table. Table 10.1 – Components of Other Investments (In Thousands) December 31, 2018 December 31, 2017 Servicer advance investments $ 300,468 $ — Mortgage servicing rights 60,281 63,598 Participation in loan warehouse facility 39,703 — Excess MSRs 27,312 — Investment in 5 Arches 10,754 — Total Other Investments $ 438,518 $ 63,598 Servicer advance investments In December 2018, we and a third-party co-investor, through two partnerships (“SA Buyers”) consolidated by us, purchased the outstanding servicer advances and excess MSRs related to a portfolio of legacy residential mortgage-backed securitizations serviced by the co-investor (See Note 4 for additional information on the SA Buyers). At December 31, 2018, we had funded $57 million of capital to the SA Buyers and expected to fund an additional $36 million of capital under an outstanding commitment (see Note 16 for additional detail). Our servicer advance investments (owned by the consolidated SA Buyers) are comprised of outstanding servicer advance receivables, the requirement to purchase all future servicer advances made with respect to a specified pool of residential mortgage loans, and a portion of the mortgage servicing fees from the underlying loan pool. A portion of the remaining mortgage servicing fees from the underlying loan pool are paid directly to the third-party servicer for the performance of servicing duties and a portion is paid to the excess MSRs. We hold our servicer advance investments at our taxable REIT subsidiary. Servicer advances are non-interest bearing and a customary feature of residential mortgage securitization transactions. Servicer advances are generally reimbursable cash payments made by a servicer when the borrower fails to make scheduled payments due on a residential mortgage loan or to support the value of the collateral property. Servicer advances typically fall into three categories: • Principal and Interest Advances: cash payments made by the servicer to cover scheduled principal and interest payments on a residential mortgage loan that have not been paid on a timely basis by the borrower. • Escrow Advances (Taxes and Insurance Advances): Cash payments made by the servicer to third parties on behalf of the borrower for real estate taxes and insurance premiums on the property that have not been paid on a timely basis by the borrower. • Corporate Advances: Cash payments made by the servicer to third parties for the reimbursable costs and expenses incurred in connection with the foreclosure, preservation and sale of the mortgaged property, including attorneys’ and other professional fees. Servicer advances are generally permitted to be repaid from amounts received with respect to the related residential mortgage loan, including payments from the borrower or amounts received from the liquidation of the property securing the loan. Residential mortgage servicing agreements generally require a servicer to make advances in respect of serviced residential mortgage loans unless the servicer determines in good faith that the advance would not be ultimately recoverable from the proceeds of the related residential mortgage loan or the mortgaged property. At December 31, 2018, our servicer advance investments had a carrying value of $300 million and were associated with a portfolio of residential mortgage loans with an unpaid principal balance of $8.05 billion . The outstanding servicer advance receivables associated with this investment were $287 million at December 31, 2018, which were financed with short-term non-recourse securitization debt (see Note 13 for additional detail on this debt). The $287 million of servicer advance receivables were comprised of the following types of advances: Table 10.2 – Components of Servicer Advance Receivables (In Thousands) December 31, 2018 December 31, 2017 Principal and interest advances $ 144,336 $ — Escrow advances (taxes and insurance advances) 94,828 — Corporate advances 47,614 — Total Servicer Advance Receivables $ 286,778 $ — We account for our servicer advance investments at fair value and during the three months ended December 31, 2018, we recorded $1 million of interest income associated with these investments and recorded a net market valuation loss of $1 million through Investment fair value changes, net in our consolidated statements of income. 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 majority of our investments in MSRs were made through the retention of servicing rights associated with the residential jumbo mortgage loans that we acquired and subsequently transferred to third parties. We hold our MSR investments at our taxable REIT subsidiary. At December 31, 2018 and December 31, 2017, our MSRs had a fair value of $60 million and $64 million , respectively, and were associated with loans with an aggregate principal balance of $4.93 billion and $5.56 billion , respectively. The following table presents activity for MSRs for the years ended December 31, 2018 , 2017 , and 2016 . Table 10.3 – Activity for MSRs Years Ended December 31, (In Thousands) 2018 2017 2016 Balance at beginning of period $ 63,598 $ 118,526 $ 191,976 Additions 328 8,026 25,362 Sales (1,077 ) (52,788 ) (62,440 ) Changes in fair value due to: Changes in assumptions (1) 4,434 (1,088 ) (14,512 ) Other changes (2) (7,002 ) (9,078 ) (21,860 ) Balance at End of Period $ 60,281 $ 63,598 $ 118,526 (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. The following table presents the components of our MSR income for the years ended December 31, 2018 , 2017 , and 2016 . Table 10.4 – Components of MSR Income, net Years Ended December 31, (In Thousands) 2018 2017 2016 Servicing income $ 15,372 $ 21,120 $ 41,152 Cost of sub-servicer (1,444 ) (2,828 ) (6,281 ) Net servicing fee income 13,928 18,292 34,871 Market valuation changes of MSRs (2,508 ) (10,166 ) (36,372 ) Market valuation changes of associated derivatives (1) (4,734 ) (568 ) 15,584 MSR reversal of provision for repurchases 390 302 270 MSR Income, Net $ 7,076 $ 7,860 $ 14,353 (1) MSR income, net is included in Other income, net on our consolidated statements of income. Participation in Loan Warehouse Facility In the second quarter of 2018, we invested in a subordinated participation in a revolving mortgage loan warehouse credit facility of one of our loan sellers. While our interest is subordinated, it is secured by the loans collateralizing the facility and we have recourse to the loan seller. We account for this subordinated participation interest as a loan receivable at amortized cost, and all associated interest income is recorded as a component of Other interest income in our consolidated statements of income. We monitor the credit quality of the warehouse line of credit and utilize such information in our evaluation of the appropriateness of the allowance for credit losses. As of December 31, 2018 , we determined no allowance for credit losses was required for this receivable. Excess MSRs In association with our servicer advance investments described above, in the fourth quarter of 2018, we (through our consolidated SA Buyers) also invested in excess MSRs associated with the same portfolio of legacy residential mortgage-backed securitizations. Additionally, in the fourth quarter of 2018, we invested in excess MSRs associated with a specified pool of multifamily loans. We account for our excess MSRs at fair value and during the three months ended December 31, 2018, we recognized $1 million of interest income and recorded a net market valuation gain of $2 million through Investment fair value changes, net on our consolidated statements of income. Investment in 5 Arches In May 2018, we acquired a 20% minority interest in 5 Arches for $10 million , which included a one -year option to purchase all remaining equity in the company for a combination of cash and stock totaling $40 million . 5 Arches is an originator and asset manager of business purpose residential mortgage loans, including loans to investors in single-family rental properties and bridge loans for investors in residential and multifamily properties. In connection with this investment, we also entered into a loan flow purchase agreement to purchase single-family rental loans from 5 Arches. See Note 7 for discussion on our business purpose residential loan portfolio and the loans we have acquired from 5 Arches. In January 2019, we exercised our option to acquire the remaining 80% interest in 5 Arches for a combination of cash and common stock totaling $40 million . A portion of this remaining consideration is contingent upon 5 Arches achieving certain origination volumes over the next two years. This acquisition is expected to close in the first quarter of 2019, subject to customary closing conditions. During 2018, we accounted for our minority ownership interest in 5 Arches using the equity method of accounting as we are able to exert significant influence over but do not control the activities of the investee. At December 31, 2018 , the carrying amount of our investment in 5 Arches was $7 million , and the carrying value of the purchase option was $4 million . We have elected to record our share of earnings or losses from 5 Arches on a one-quarter lag. During the year ended December 31, 2018 , we recorded $0.6 million of gross income associated with this investment and, including amortization of certain intangible assets, recorded $0.4 million of net earnings in Other income, net on our consolidated statements of income.

Derivative Financial Instrument

Derivative Financial Instruments	12 Months Ended
	Dec. 31, 2018
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, 2018 and December 31, 2017 . Table 11.1 – Fair Value and Notional Amount of Derivative Financial Instruments December 31, 2018 December 31, 2017 Fair Value Notional Amount Fair Value Notional Amount (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 28,211 $ 2,106,500 $ 10,122 $ 1,765,000 TBAs 4,665 520,000 133 295,000 Futures — — 1 7,500 Swaptions — — 42 200,000 Assets - Other Derivatives Loan purchase commitments 2,913 331,161 3,243 547,434 Loan forward sale commitments — — 2,177 343,681 Total Assets $ 35,789 $ 2,957,661 $ 15,718 $ 3,158,615 Liabilities - Cash Flow Hedges Interest rate swaps $ (34,492 ) $ 139,500 $ (43,679 ) $ 139,500 Liabilities - Risk Management Derivatives Interest rate swaps (36,416 ) 1,742,000 (11,888 ) 1,248,000 TBAs (13,215 ) 935,000 (3,808 ) 1,400,000 Liabilities - Other Derivatives Loan purchase commitments (732 ) 137,224 (3,706 ) 697,966 Total Liabilities $ (84,855 ) $ 2,953,724 $ (63,081 ) $ 3,485,466 Total Derivative Financial Instruments, Net $ (49,066 ) $ 5,911,385 $ (47,363 ) $ 6,644,081 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, 2018 , we were party to swaps with an aggregate notional amount of $3.85 billion and TBA agreements sold with an aggregate notional amount of $1.46 billion . 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 . For the years ended December 31, 2018 , 2017 , and 2016 , risk management derivatives had a net market valuation gain of $40 million , a net market valuation loss of $31 million , and a net market valuation gain of $10 million , respectively. These market valuation gains and losses are recorded in Mortgage banking activities, net, Investment fair value changes, net and Other income, 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. For the years ended December 31, 2018 , 2017 , and 2016 , LPCs and FSCs had a net market valuation loss of $1 million and net market valuation gain s of $38 million and $26 million , respectively, that 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, 2018 , 2017 , and 2016 , changes in the values of designated cash flow hedges were positive $9 million , positive $1 million , and positive $3 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 $34 million and $43 million at December 31, 2018 and December 31, 2017 , 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, 2018 , 2017 , and 2016 . Table 11.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Years Ended December 31, (In Thousands) 2018 2017 2016 Net interest expense on cash flows hedges $ (3,228 ) $ (4,602 ) $ (5,317 ) Realized net losses reclassified from other comprehensive income — (45 ) (72 ) Total Interest Expense $ (3,228 ) $ (4,647 ) $ (5,389 ) 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, 2018 , we assessed this risk as remote and did not record a specific valuation adjustment. At December 31, 2018 , we had outstanding derivative agreements with two 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, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets and Liabilities	Other Assets and Liabilities Other assets at December 31, 2018 and December 31, 2017 are summarized in the following table. Table 12.1 – Components of Other Assets (In Thousands) December 31, 2018 December 31, 2017 Margin receivable $ 100,773 $ 85,044 FHLBC stock 43,393 43,393 Pledged collateral 42,433 42,615 Investment receivable 6,959 1,147 Fixed assets and leasehold improvements (1) 5,106 2,645 REO 3,943 3,354 Other 15,218 16,768 Total Other Assets $ 217,825 $ 194,966 (1) Fixed assets and leasehold improvements had a basis of $10 million and accumulated depreciation of $5 million at December 31, 2018 . Accrued expenses and other liabilities at December 31, 2018 and December 31, 2017 are summarized in the following table. Table 12.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) December 31, 2018 December 31, 2017 Accrued compensation $ 19,769 $ 24,025 Guarantee obligations 16,711 19,487 Payable to minority partner 14,331 — Deferred tax liabilities 9,022 11,764 Residential loan and MSR repurchase reserve 4,189 4,916 Legal reserve 2,000 2,000 Unsettled trades 1,494 13 Margin payable 835 390 Accrued taxes payable 423 — Other 9,945 5,134 Total Accrued Expenses and Other Liabilities $ 78,719 $ 67,729 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. FHLBC 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 15 for additional information on this borrowing agreement. Pledged Collateral and Guarantee Obligations The pledged collateral 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 16 for additional information on our risk-sharing arrangements. Investment Receivable At December 31, 2018 , investment receivable primarily consisted of $5 million of trade receivables related to real estate securities sales. In accordance with our policy to record purchases and sales of securities on the trade date, if the trade and settlement of a purchase or sale crosses over a quarterly reporting period, we will record an investment receivable for sales and an unsettled trades liability for purchases. REO The carrying value of REO at December 31, 2018 , was $4 million , which includes the net effect of $4 million related to transfers into REO during the year ended December 31, 2018 , offset by $4 million of REO liquidations and $0.5 million of unrealized gains resulting from market valuation adjustments. At December 31, 2018 and December 31, 2017 , there were 13 and 14 REO properties, respectively, recorded on our consolidated balance sheets, all of which were owned at consolidated Legacy Sequoia entities. Legal and Repurchase Reserves See Note 16 for additional information on the legal and residential repurchase reserves. Payable to Minority Partner In December 2018, Redwood and a third-party co-investor, through two partnership entities consolidated by Redwood, purchased servicer advances and excess MSRs related to a portfolio of residential mortgage loans serviced by the co-investor (see Note 4 and Note 10 for additional information on the partnership entities and associated investments). We account for the co-investor’s interests in the entities as liabilities and at December 31, 2018, the carrying value of their interests was $14 million , representing their current economic interest in the entities. Earnings from the partnership entities are allocated to the co-investors on a proportional basis and during the three months ended December 31, 2018, we allocated less than $0.1 million of losses to the co-investors, which was recorded in Other income, net on our consolidated statements of income.

Short-Term Debt

Short-Term Debt	12 Months Ended
	Dec. 31, 2018
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, 2018 , 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, 2018 and December 31, 2017 . Table 13.1 – Short-Term Debt December 31, 2018 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate Maturity Weighted Average Days Until Maturity Facilities Residential loan warehouse (1) 4 $ 860,650 $ 1,425,000 4.10 % 2/2019-12/2019 178 Real estate securities repo (1) 9 988,890 — 3.47 % 01/2019-03/2019 26 Single-family rental loan warehouse (2) 2 22,053 400,000 4.77 % 6/2020-6/2021 560 Residential bridge loan warehouse (2) 2 66,327 80,000 5.20 % 11/2019-04/2021 629 Total Short-Term Debt Facilities 17 1,937,920 Servicer advance financing 1 262,740 350,000 4.32 % 11/2019 333 Convertible notes, net N/A 199,619 — 5.63 % 11/2019 319 Total Short-Term Debt $ 2,400,279 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 (1) 4 $ 1,039,666 $ 1,575,000 3.17 % 1/2018-12/2018 197 Real estate securities repo (1) 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 (1) Borrowings under our facilities are generally charged interest based on a specified margin over the one-month LIBOR interest rate. At December 31, 2018 , all of these borrowings were under uncommitted facilities and were due within 364 days (or less) of the borrowing date. (2) Due to the revolving nature of the borrowings under these facilities, we have classified these facilities as short-term debt at December 31, 2018 . Borrowings under these facilities will be repaid as the underlying loans mature or are sold to third parties or transferred to securitizations. Borrowings under our facilities are generally charged interest based on a specified margin over the one-month LIBOR interest rate. At December 31, 2018 , all of these borrowings were under uncommitted facilities and were generally 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 $935 million and $844 million , respectively, at December 31, 2018 and $1.15 billion and $788 million , respectively, at December 31, 2017 . In addition, at December 31, 2018 , the fair value of our real estate securities pledged as collateral included $130 million of securities retained from our consolidated Sequoia Choice securitizations, as well as $229 million and $18 million of securities we owned that were issued by consolidated Freddie Mac SLST and Freddie Mac K-Series securitizations, respectively. At December 31, 2018 , the fair value of single-family rental and residential bridge loans pledged as collateral under our warehouse facilities was $28 million and $98 million , respectively. For the years ended December 31, 2018 and 2017 , the average balances of our short-term debt facilities were $1.60 billion and $1.08 billion , respectively. At December 31, 2018 and December 31, 2017 , accrued interest payable on our short-term debt facilities was $4 million and $2 million , respectively. Servicer advance financing consists of non-recourse short-term securitization debt used to finance servicer advance investments we made in the fourth quarter of 2018. We consolidate the securitization entity that issued the debt, but the entity is independent of Redwood and the assets and liabilities are not owned by and are not legal obligations of Redwood. At December 31, 2018, the fair value of servicer advances collateralizing the securitization financing was $287 million . At December 31, 2018, the accrued interest payable balance on this financing was $1 million and the unamortized capitalized commitment costs were $3 million . During the fourth quarter of 2018, $201 million principal amount of 5.625% exchangeable senior notes and $1 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 November 2018. At December 31, 2018 , the accrued interest payable balance on this debt was $1 million . See Note 15 for additional information on our convertible notes. 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. In April 2018, we repaid these $250 million convertible notes and all related accrued interest in full. 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 $4 million at December 31, 2018 . At both December 31, 2018 and December 31, 2017 , 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, 2018 . Table 13.2 – Short-Term Debt by Collateral Type and Remaining Maturities December 31, 2018 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for sale residential loans $ — $ 458,955 $ 401,695 $ 860,650 Real estate securities 764,052 224,838 — 988,890 Single-family rental loans — — 22,053 22,053 Residential bridge loans — — 66,327 66,327 Total Secured Short-Term Debt 764,052 683,793 490,075 1,937,920 Servicer advance financing — — 262,740 262,740 Convertible notes, net — — 199,619 199,619 Total Short-Term Debt $ 764,052 $ 683,793 $ 952,434 $ 2,400,279

Asset-Backed Securities Issued

Asset-Backed Securities Issued	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Asset-Backed Securities Issued	Asset-Backed Securities Issued Through our Sequoia securitization program, we sponsor securitization transactions in which securities backed by residential mortgage loans (ABS) are issued by Sequoia entities. We consolidated the Legacy Sequoia and Sequoia Choice securitization entities, and beginning in 2018, certain third-party Freddie Mac K-Series and SLST 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 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 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 each of these 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 basis. All ABS issued by the Sequoia Choice, Freddie Mac K-Series and Freddie Mac SLST 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. 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, 2018 and December 31, 2017 , along with other selected information, are summarized in the following table. Table 14.1 – Asset-Backed Securities Issued December 31, 2018 (Dollars in Thousands) Legacy Sequoia Sequoia Choice Freddie Mac SLST Freddie Mac K-Series Total Certificates with principal balance $ 540,456 $ 1,838,758 $ 993,659 $ 1,936,691 $ 5,309,564 Interest-only certificates 1,537 25,662 — 131,600 158,799 Market valuation adjustments (29,753 ) 20,590 89 (49,216 ) (58,290 ) ABS Issued, Net $ 512,240 $ 1,885,010 $ 993,748 $ 2,019,075 $ 5,410,073 Range of weighted average interest rates, by series 1.36% to 3.60% 4.46% to 4.97% 3.51 % 3.39% to 4.08% Stated maturities 2024 - 2036 2047 - 2048 2028 2025 - 2049 Number of series 20 6 1 3 December 31, 2017 (Dollars in Thousands) Legacy Sequoia Sequoia Freddie Mac SLST Freddie Mac K-Series Total Certificates with principal balance $ 691,125 $ 526,657 $ — $ — $ 1,217,782 Interest-only certificates 1,972 7,695 — — 9,667 Market valuation adjustments (70,652 ) 7,788 — — (62,864 ) ABS Issued, Net $ 622,445 $ 542,140 $ — $ — $ 1,164,585 Range of weighted average interest rates, by series 1.46% to 2.78% 4.52% to 4.73% — % — % Stated maturities 2024 - 2036 2047 — — Number of series 20 2 — — 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, 2018 , all of the ABS issued and outstanding had contractual maturities beyond five years . The following table summarizes the accrued interest payable on ABS issued at December 31, 2018 and December 31, 2017 . Interest due on consolidated ABS issued is payable monthly. Table 14.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) December 31, 2018 December 31, 2017 Legacy Sequoia $ 571 $ 537 Sequoia Choice 7,180 2,031 Freddie Mac SLST 2,907 — Freddie Mac K-Series 6,239 — Total Accrued Interest Payable on ABS Issued $ 16,897 $ 2,568 The following table summarizes the carrying value components of the collateral for ABS issued and outstanding at December 31, 2018 and December 31, 2017 . Table 14.3 – Collateral for Asset-Backed Securities Issued December 31, 2018 (In Thousands) Legacy Sequoia Sequoia Choice Freddie Mac SLST Freddie Mac K-Series Total Residential loans $ 519,958 $ 2,079,382 $ 1,222,669 $ — $ 3,822,009 Multifamily loans — — — 2,144,598 2,144,598 Restricted cash 146 1,022 — — 1,168 Accrued interest receivable 822 8,988 3,926 6,595 20,331 REO 3,943 — — — 3,943 Total Collateral for ABS Issued $ 524,869 $ 2,089,392 $ 1,226,595 $ 2,151,193 $ 5,992,049 December 31, 2017 (In Thousands) Legacy Sequoia Sequoia Freddie Mac SLST Freddie Mac K-Series Total Residential loans $ 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 Collateral for ABS Issued $ 637,184 $ 622,590 $ — $ — $ 1,259,774

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2018
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, 2018 , 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, 2018, we made no additional borrowings under this agreement. Under a final rule published by the Federal Housing Finance Agency in January 2016, our FHLB-member subsidiary will remain an FHLB member through the five -year transition period for captive insurance companies. Our FHLB-member subsidiary's existing $2.00 billion of FHLB debt, which matures beyond this transition period, is permitted to remain outstanding until 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, 2018 , $2.00 billion of advances were outstanding under this agreement, which were classified as long-term debt, with a weighted average interest rate of 2.52% and a weighted average maturity of approximately seven years . 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 eight 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. At December 31, 2018 , total advances under this agreement were secured by residential mortgage loans with a fair value of $2.38 billion . 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, 2018 , 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, 2018 . Table 15.1 – Maturities of FHLBC Borrowings by Year (In Thousands) December 31, 2018 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 June 2018, we issued $200 million principal amount of 5.625% convertible senior notes due 2024 at an issuance price of 99.5% . These convertible notes require semi-annual interest payments at a fixed coupon rate of 5.625% until maturity or conversion, which will be no later than July 15, 2024 . After deducting the issuance discount, the underwriting discount and offering costs, we received $194 million of net proceeds. Including amortization of deferred debt issuance costs and the debt discount, the weighted average interest expense yield on these convertible notes is approximately 6.2% per annum. These notes are convertible at the option of the holder at a conversion rate of 54.7645 common shares per $1,000 principal amount of convertible senior notes (equivalent to a conversion price of $18.26 per common share). Upon conversion of these notes by a holder, the holder will receive shares of our common stock. At December 31, 2018 , the outstanding principal amount of these notes was $200 million and the accrued interest payable on this debt was $6 million . At December 31, 2018 , the unamortized deferred issuance costs and debt discount were $5 million and $1 million , respectively. 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, 2018 , these notes were convertible at the option of the holder at a conversion rate of 53.9060 common shares per $1,000 principal amount of convertible senior notes (equivalent to a conversion price of $18.55 per common share). Upon conversion of these notes by a holder, the holder will receive shares of our common stock. At December 31, 2018 , the outstanding principal amount of these notes was $245 million . At December 31, 2018 , the accrued interest payable balance on this debt was $4 million and the unamortized deferred issuance costs were $6 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, 2018 , these notes were exchangeable at the option of the holder at an exchange rate of 46.2370 common shares per $1,000 principal amount of exchangeable senior notes (equivalent to an exchange price of $21.63 per common share). Upon exchange of these notes by a holder, the holder will receive shares of our common stock. During 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. Additionally, during the fourth quarter of 2018, $201 million principal amount of these notes and $1 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 November 2018. At December 31, 2018 , the outstanding principal amount of these notes was $201 million . At December 31, 2018 , the accrued interest payable balance on this debt was $1 million and the unamortized deferred issuance costs were $1 million . In March 2013, we issued $288 million principal amount of 4.625% convertible senior notes due in April 2018 . These convertible notes required semi-annual interest payments at a fixed coupon rate of 4.625% until the debt matured on 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 was approximately 4.8% per annum. Until maturity, 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). During 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 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. In April 2018, we repaid these $250 million convertible notes and all related accrued interest in full. Trust Preferred Securities and Subordinated Notes At December 31, 2018 , 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, 2018 and December 31, 2017 , 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, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Commitments At December 31, 2018 , we were obligated under four non-cancelable operating leases with expiration dates through 2028 for $16 million of cumulative lease payments. Our operating lease expense was $2 million , $2 million , and $3 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The following table presents our future lease commitments at December 31, 2018 . Table 16.1 – Future Lease Commitments by Year (In Thousands) December 31, 2018 2019 $ 2,002 2020 1,966 2021 1,474 2022 and thereafter 10,217 Total Lease Commitments $ 15,659 Leasehold improvements for our offices are amortized into expense over the lease term. There were $3 million of unamortized leasehold improvements at December 31, 2018 . For each of the years ended December 31, 2018 , 2017 , and 2016 , we recognized less than $0.2 million of leasehold amortization expense. Commitment to Fund Partnerships In the fourth quarter of 2018, we invested in two partnerships created to acquire and manage certain mortgage servicing related assets (see Note 10 for additional detail). At December 31, 2018, we had an outstanding commitment to fund an additional $36 million to these partnerships to acquire additional outstanding servicer advances and excess MSRs. As of February 28, 2019, we had funded $7 million of this commitment and expect to fund the remainder before the end of June 2019. In connection with this investment, we are also required to fund future net servicer advances related to the underlying mortgage loans. The actual amount of net servicer advances we may fund in the future is subject to significant uncertainty and will be based on the credit and prepayment performance of the underlying loans. Commitment to Participate in Loan Warehouse Facility In the second quarter of 2018, we invested in a participation in the mortgage loan warehouse credit facility of one of our loan sellers. This investment includes a commitment to participate in (and an obligation to fund) a designated amount of the loan seller's borrowings under this warehouse credit facility. This obligation is subject to daily funding requests by the financial institution, and fundings are recorded on our balance sheet as a Participation in loan warehouse facility. At December 31, 2018 , $40 million of our commitment had been funded, and, assuming future borrowings under this facility are collateralized by mortgage loans with characteristics consistent with those collateralizing the facility at December 31, 2018 , we were committed to fund up to an additional $22 million . See Note 10 for additional detail on our participation in a loan warehouse facility. Loss Contingencies — Risk-Sharing During 2015 and 2016, we 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, 2018 , 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, 2018 , we had not incurred any losses under these arrangements. For the years ended December 31, 2018 , 2017 , and 2016 , other income related to these arrangements was $4 million , $3 million , and $5 million , respectively, and was included in Other income, net on our consolidated statements of income. For the years ended December 31, 2018 , 2017 , and 2016 , we recorded net market valuation losses related to these arrangements of $0.4 million , $1 million , and $1 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, 2018 , the loans had an unpaid principal balance of $1.84 billion and a weighted average FICO score of 759 (at origination) and LTV ratio of 76% (at origination). At December 31, 2018 , $7 million of the loans were 90 days or more delinquent, of which $1 million were in foreclosure. At December 31, 2018 , the carrying value of our guarantee obligation was $17 million and included $5 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, 2018 and December 31, 2017 , assets of such SPEs totaled $47 million and $48 million , respectively, and liabilities of such SPEs totaled $17 million and $19 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 December 31, 2018 and December 31, 2017 , our repurchase reserve associated with our residential loans and MSRs was $4 million and $5 million , respectively, and was recorded in Accrued expenses and other liabilities on our consolidated balance sheets. We received 11 repurchase requests during the year ended December 31, 2018 and 17 during the year ended December 31, 2017 . During the years ended December 31, 2018 , 2017 , and 2016 , we repurchased two loans, one loan, and one loan, respectively. During the years ended December 31, 2018 , 2017 , and 2016 , we recorded $0.7 million , $0.3 million , and $1 million of reversals of repurchase provisions, respectively, that were recorded in Mortgage banking activities, net and Other income, net on our consolidated statements of income and had charge-offs of zero , $0.2 million , and $0.1 million , respectively. 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, 2018 , approximately $126 million of principal and $12 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, 2018 , 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, 2018 , 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, 2018
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, 2018 and 2017 . Table 17.1 – Changes in Accumulated Other Comprehensive Income by Component Years Ended December 31, 2018 2017 (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 $ 128,201 $ (42,953 ) $ 115,873 $ (44,020 ) Other comprehensive income (loss) (7,298 ) 8,908 22,864 1,022 Amounts reclassified from other (1) (25,561 ) — (10,536 ) 45 Net current-period other comprehensive income (loss) (32,859 ) 8,908 12,328 1,067 Balance at End of Period $ 95,342 $ (34,045 ) $ 128,201 $ (42,953 ) (1) Amount is presented net of tax provision of $2 million for the year ended December 31, 2018 . The following table provides a summary of reclassifications out of accumulated other comprehensive income for the years ended December 31, 2018 and 2017 . Table 17.2 – 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 2018 2017 Net Realized (Gain) Loss on AFS Securities Other than temporary impairment (1) Investment fair value changes, net $ 89 $ 1,012 Gain on sale of AFS securities Realized gains, net (27,178 ) (11,548 ) Gain on sale of AFS securities Provision for income taxes 1,528 — $ (25,561 ) $ (10,536 ) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ — $ 45 $ — $ 45 (1) For the year ended December 31, 2018 , other-than-temporary impairments were $1 million , of which $0.1 million were recognized through our consolidated statements of income and $1 million were recognized in Accumulated other comprehensive income, a component of our consolidated balance sheet. 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. Issuance of Common Stock During the year ended December 31, 2018 , we issued 7,187,500 shares of common stock in an underwritten public offering for net proceeds of $117 million . Additionally, in the fourth quarter of 2018, we established a program to sell up to an aggregate of $150 million of common stock from time to time in at-the-market ("ATM") offerings. During the fourth quarter of 2018, we issued 1,550,819 common shares for net proceeds of approximately $25 million through ATM offerings. At December 31, 2018, approximately $125 million remained oustanding for future offerings under this program. Earnings per Common Share The following table provides the basic and diluted earnings per common share computations for the years ended December 31, 2018 , 2017 , and 2016 . Table 17.3 – Basic and Diluted Earnings per Common Share Years Ended December 31, (In Thousands, except Share Data) 2018 2017 2016 Basic Earnings per Common Share: Net income attributable to Redwood $ 119,600 $ 140,406 $ 131,252 Less: Dividends and undistributed earnings allocated to participating securities (3,754 ) (3,632 ) (3,742 ) Net income allocated to common shareholders $ 115,846 $ 136,774 $ 127,510 Basic weighted average common shares outstanding 78,724,912 76,792,957 76,747,047 Basic Earnings per Common Share $ 1.47 $ 1.78 $ 1.66 Diluted Earnings per Common Share: Net income attributable to Redwood $ 119,600 $ 140,406 $ 131,252 Less: Dividends and undistributed earnings allocated to participating securities (4,283 ) (3,836 ) (4,035 ) Add back: Interest expense on convertible notes for the period, net of tax 32,653 26,898 23,862 Net income allocated to common shareholders $ 147,970 $ 163,468 $ 151,079 Weighted average common shares outstanding 78,724,912 76,792,957 76,747,047 Net effect of dilutive equity awards 189,120 185,383 28,435 Net effect of assumed convertible notes conversion to common shares 31,113,738 24,996,668 21,133,608 Diluted weighted average common shares outstanding 110,027,770 101,975,008 97,909,090 Diluted Earnings per Common Share $ 1.34 $ 1.60 $ 1.54 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, 2018 , 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, 2018 , 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 years ended December 31, 2018 , 2017 , and 2016 , the number of outstanding equity awards that were antidilutive totaled 7,230 , 5,843 , and zero , 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 January 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 December 31, 2018, $100 million of the current total authorization remained available for the repurchase of shares of our common stock.

Equity Compensation Plans

Equity Compensation Plans	12 Months Ended
	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Equity Compensation Plans	Equity Compensation Plans At December 31, 2018 and December 31, 2017 , 4,616,776 and 1,356,438 shares of common stock, respectively, were available for grant under our Incentive Plan. During the second quarter of 2018, Redwood shareholders approved for grant an additional 4,000,000 shares of common stock under our Incentive Plan. The unamortized compensation cost of awards issued under the Incentive Plan and purchases under the Employee Stock Purchase Plan totaled $25 million at December 31, 2018 , as shown in the following table. Table 18.1 – Activities of Equity Compensation Costs by Award Type Year Ended December 31, 2018 (In Thousands) Restricted Stock Deferred Stock Units Performance Stock Units Employee Stock Purchase Plan Total Unrecognized compensation cost at beginning of period $ 2,808 $ 13,364 $ 5,298 $ — $ 21,470 Equity grants 2,566 9,050 4,400 136 16,152 Equity grant forfeitures (112 ) — — — (112 ) Equity compensation expense (1,690 ) (7,925 ) (2,637 ) (136 ) (12,388 ) Unrecognized Compensation Cost at End of Period $ 3,572 $ 14,489 $ 7,061 $ — $ 25,122 At December 31, 2018 , the weighted average amortization period remaining for all of our equity awards was less than two years. Restricted Stock Awards The following table summarizes the activities related to restricted stock for the years ended December 31, 2018 , 2017 , and 2016 . Table 18.2 – Restricted Stock Awards Activities Years Ended December 31, 2018 2017 2016 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of period 257,507 $ 15.23 204,515 $ 14.27 187,180 $ 18.22 Granted 173,413 14.73 134,364 16.52 144,056 11.89 Vested (83,968 ) 15.46 (61,928 ) 14.97 (50,107 ) 17.28 Forfeited (7,470 ) 15.05 (19,444 ) 14.78 (76,614 ) 18.01 Outstanding at End of Period 339,482 $ 14.92 257,507 $ 15.23 204,515 $ 14.27 The expenses recorded for restricted stock awards were $2 million for the year ended December 31, 2018 , and $1 million for each of the years ended December 31, 2017 and 2016 . As of December 31, 2018 , there was $4 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 2022 . Deferred Stock Units (“DSUs”) The following table summarizes the activities related to DSUs for the years ended December 31, 2018 , 2017 , and 2016 . Table 18.3 – Deferred Stock Units Activities Years Ended December 31, 2018 2017 2016 Units Weighted Units Weighted Units Weighted Outstanding at beginning of period 1,878,491 $ 15.92 1,848,862 $ 16.46 2,407,154 $ 16.45 Granted 670,254 15.53 565,921 16.01 565,061 13.33 Distributions (212,025 ) 18.37 (504,417 ) 18.09 (1,060,459 ) 14.64 Forfeitures — — (31,875 ) 14.80 (62,894 ) 18.66 Balance at End of Period 2,336,720 $ 15.58 1,878,491 $ 15.92 1,848,862 $ 16.46 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, 2018 and 2017 , the number of outstanding DSUs that were unvested was 1,155,098 and 988,656 , respectively. The weighted average grant-date fair value of these unvested DSUs was $15.18 and $15.20 at December 31, 2018 and 2017 , respectively. Unvested DSUs at December 31, 2018 will vest through 2022 . Expenses related to DSUs were $8 million , $6 million , and $9 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. At December 31, 2018 , there was $14 million of unrecognized compensation cost related to unvested DSUs. This cost will be recognized over a weighted average period of less than two years. At December 31, 2018 and 2017 , the number of outstanding DSUs that had vested was 1,181,623 and 889,835 , respectively. Performance Stock Units (“PSUs”) At December 31, 2018 and December 31, 2017 , the target number of PSUs that were unvested was 725,616 and 704,270 , respectively. During 2018 , 2017 , and 2016 , 258,078 , 273,054 , and 194,484 target number of PSUs were granted, respectively, with per unit grant date fair values of $17.05 , $13.24 , and $9.46 , respectively. During the years ended December 31, 2018 and 2017, 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 235,053 target number of PSUs granted in December 2018, the number of underlying shares of common stock that vest and that the recipient becomes entitled to receive at the time of vesting will generally range from 0% to 250% of the target number of PSUs granted, with the target number of PSUs granted being adjusted to reflect the value of any dividends declared on our common stock during the vesting period. Vesting of these PSUs will generally occur as of January 1, 2022 based on a three-step process as described below. • First, baseline vesting would range from 0% - 200% of the target number of PSUs granted based on the level of book value total stockholder return (“bvTSR”) attained over the three -year vesting period, with 100% of the target number of PSUs vesting if three -year bvTSR is 25%. Book Value TSR for the PSUs granted in December 2018 is defined as the percentage by which our book value "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, compared to the bvTSR goal for the performance period. • Second, the vesting level would then be adjusted to increase or decrease by up to an additional 50 percentage points based on Redwood’s relative total stockholder return (“rTSR”) against a comparator group of companies measured over the three -year vesting period, with median rTSR performance correlating to no adjustment from the baseline level of vesting. • Third, if the vesting level after steps one and two is greater than 100% of the target number of PSUs, but absolute total shareholder return (“TSR”) is negative over the three -year performance period, vesting would be capped at 100% of target number of PSUs. TSR 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 grant date fair value of the December 2018 PSUs of $17.23 was determined through Monte-Carlo simulations using the following assumptions: the common stock closing price at the grant date for Redwood and each member of the comparator group, the average closing price of the common stock price for the 60 trading days prior to the grant date for Redwood and each member of the comparator group, and the range of performance-based vesting based on Absolute TSR over three years from the grant date. For the 2018 PSU grant, an implied volatility assumption of 22% (based on historical volatility), a risk-free rate of 2.78% (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. In May 2018, 23,025 target number of PSUs with a per unit grant date fair value of $15.20 were granted to two executives in connection with their promotions. The grant date fair values of these 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 Three -Year TSR and the performance-based vesting formula described below with respect to PSUs granted in December 2017. For this PSU grant, an implied volatility assumption of 27% (based on historical volatility), a risk-free rate of 2.71% (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. With respect to the PSUs granted in December 2017, vesting will generally occur at the end of three years from their grant date, with the level of vesting at that time contingent on the 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. 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. 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 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. With respect to the PSUs granted in 2015, the three -year performance period ended during the fourth quarter of 2018, resulting in the vesting of 387,937 shares of our common stock. 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. Expenses related to PSUs were $3 million for each of the years ended December 31, 2018 , 2017, and 2016 . As of December 31, 2018 , there was $7 million of unrecognized compensation cost related to unvested PSUs. 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, 2018 , 390,569 shares had been purchased, respectively, and there remained a negligible amount of uninvested employee contributions in the ESPP at December 31, 2018 . The following table summarizes the activities related to the ESPP for the years ended December 31, 2018 , 2017 , and 2016 . Table 18.4 – Employee Stock Purchase Plan Activities Years Ended December 31, (In Thousands) 2018 2017 2016 Balance at beginning of period $ 4 $ 3 $ 18 Employee purchases 375 305 290 Cost of common stock issued (373 ) (304 ) (305 ) Balance at End of Period $ 6 $ 4 $ 3 Executive Deferred Compensation Plan The following table summarizes the cash account activities related to the EDCP for the years ended December 31, 2018 , 2017 , and 2016 . Table 18.5 – EDCP Cash Accounts Activities Years Ended December 31, (In Thousands) 2018 2017 2016 Balance at beginning of period $ 2,171 $ 2,088 $ 2,095 New deferrals 759 750 558 Accrued interest 82 58 53 Withdrawals (528 ) (725 ) (618 ) Balance at End of Period $ 2,484 $ 2,171 $ 2,088 In the fourth quarter of 2018, our Board of Directors approved an amendment to the EDCP to increase by 200,000 shares the shares available to allow non-employee directors to defer certain cash payments and dividends into DSUs.

Mortgage Banking Activities

Mortgage Banking Activities	12 Months Ended
	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Mortgage Banking Activities	Mortgage Banking Activities The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income for the years ended December 31, 2018 , 2017 , and 2016 . Table 19.1 – Mortgage Banking Activities Years Ended December 31, (In Thousands) 2018 2017 2016 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ 21,808 $ 69,373 $ 31,399 Single-family rental loans, at fair value (1) 453 — — Sequoia securities — — 1,455 Risk management derivatives (2) 34,739 (17,529 ) 5,696 Other income (expense), net (3) 2,566 2,064 2,203 Total residential mortgage banking activities, net 59,566 53,908 40,753 Commercial Mortgage Banking Activities, Net — — (2,062 ) Mortgage Banking Activities, Net $ 59,566 $ 53,908 $ 38,691 (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 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	12 Months Ended
	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Investment Fair Value Changes	Investment 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, 2018 , 2017 and 2016 . Table 20.1 – Investment Fair Value Changes Years Ended December 31, (In Thousands) 2018 2017 2016 Investment Fair Value Changes, Net Changes in fair value of: Residential loans held-for-investment, at Redwood $ (29,573 ) $ (5,765 ) $ (23,102 ) Residential bridge loans held-for-investment (29 ) — — Trading securities (8,055 ) 39,526 9,666 Servicer advance investments (701 ) — — Excess MSRs 1,823 — — Net investments in Legacy Sequoia entities (1) (1,016 ) (8,027 ) (4,200 ) Net investments in Sequoia Choice entities (1) 443 (323 ) — Net investment in Freddie Mac SLST entity (1) 1,271 — — Net investments in Freddie Mac K-Series entities (1) 931 — — Risk-sharing investments (434 ) (1,484 ) (1,151 ) Risk management derivatives, net 9,740 (12,842 ) (9,112 ) Valuation adjustments on commercial loans held-for-sale — 300 (307 ) Impairments on AFS securities (89 ) (1,011 ) (368 ) Investment Fair Value Changes, Net $ (25,689 ) $ 10,374 $ (28,574 ) (1) Includes changes in fair value of the 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.

Operating Expenses

Operating Expenses	12 Months Ended
	Dec. 31, 2018
Other Income and Expenses [Abstract]
Operating Expenses	Operating Expenses Components of our operating expenses for the years ended December 31, 2018 , 2017 and 2016 are presented in the following table. Table 21.1 – Components of Operating Expenses Years Ended December 31, (In Thousands) 2018 2017 2016 Fixed compensation expense $ 24,445 $ 22,111 $ 24,332 Variable compensation expense (1) 14,589 20,574 16,581 Equity compensation expense 12,388 10,141 9,093 Total compensation expense 51,422 52,826 50,006 Systems and consulting 7,451 7,073 9,037 Loan acquisition costs (2) 7,697 5,022 5,744 Office costs 4,705 4,248 4,550 Accounting and legal 5,529 2,842 3,658 Corporate costs 1,955 1,856 2,106 Other operating expenses 4,023 3,289 3,284 Operating expenses before restructuring charges 82,782 77,156 78,385 Restructuring charges (3) — — 10,401 Total Operating Expenses $ 82,782 $ 77,156 $ 88,786 (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.

Taxes

Taxes	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Taxes	Taxes Components of our net deferred tax assets at December 31, 2018 and December 31, 2017 are presented in the following table. Table 22.1 – Deferred Tax Assets (Liabilities) (In Thousands) December 31, 2018 December 31, 2017 Deferred Tax Assets Net operating loss carryforward – state $ 103,858 $ 108,085 Net capital loss carryforward – federal — 535 Real estate assets 2,400 — Interest rate agreements 2,320 1,380 Allowances and accruals 1,830 2,044 Other 1,586 1,844 Total Deferred Tax Assets 111,994 113,888 Deferred Tax Liabilities Real estate assets — (562 ) Mortgage Servicing Rights (20,068 ) (20,540 ) Tax effect of unrealized gains – OCI — (1,166 ) Total Deferred Tax Liabilities (20,068 ) (22,268 ) Valuation allowance (100,948 ) (103,384 ) Total Deferred Tax Asset (Liability), net of Valuation Allowance $ (9,022 ) $ (11,764 ) 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, 2018 , 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 2018 and 2017, we are reporting net federal ordinary and capital deferred tax liabilities ("DTLs") at December 31, 2018 and December 31, 2017 and consequently no valuation allowance was recorded against any federal DTA in either of these periods. Consistent with prior periods, at December 31, 2018 , 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, 2015 to 2018 , and State, 2014 to 2018 ) and, at December 31, 2018 and December 31, 2017 , concluded that we had no uncertain tax positions that resulted in material unrecognized tax benefits. At December 31, 2018 , our federal NOL carryforward at the REIT was $39 million , which will expire in 2029 . In order to utilize NOLs at the REIT, taxable income must exceed dividend distributions. At December 31, 2018 , 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 $1.21 billion at December 31, 2018 . 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, 2018 , 2017 , and 2016 . Table 22.2 – Provision for Income Taxes Years Ended December 31, (In Thousands) 2018 2017 2016 Current Provision for Income Taxes Federal $ 11,387 $ 512 $ 1,477 State 820 361 331 Total Current Provision for Income Taxes 12,207 873 1,808 Deferred Provision for Income Taxes Federal (1,419 ) 10,991 1,910 State 300 (112 ) (10 ) Total Deferred (Benefit) Provision for Income Taxes (1,119 ) 10,879 1,900 Total Provision for Income Taxes $ 11,088 $ 11,752 $ 3,708 The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at December 31, 2018 , 2017 , and 2016 . Table 22.3 – Reconciliation of Statutory Tax Rate to Effective Tax Rate December 31, 2018 December 31, 2017 December 31, 2016 Federal statutory rate 21.0 % 34.0 % 34.0 % State statutory rate, net of Federal tax effect 8.6 % 7.2 % 7.2 % Differences in taxable (loss) income from GAAP income (1.7 )% (3.9 )% (1.0 )% Change in valuation allowance 1.9 % (1.0 )% (11.2 )% Dividends paid deduction (21.3 )% (23.4 )% (26.3 )% Federal statutory rate change — % (5.2 )% — % Effective Tax Rate 8.5 % 7.7 % 2.7 % 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, 2018
Segment Reporting [Abstract]
Segment Information	Segment Information Redwood operates in two segments: Investment Portfolio and Mortgage Banking. 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, 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, 2018 , 2017 , and 2016 . Table 23.1 – Business Segment Financial Information Year Ended December 31, 2018 (In Thousands) Investment Portfolio Mortgage Banking Corporate/ Other Total Interest income $ 304,636 $ 53,054 $ 21,027 $ 378,717 Interest expense (149,139 ) (28,934 ) (60,966 ) (239,039 ) Net interest income (loss) 155,497 24,120 (39,939 ) 139,678 Non-interest income Mortgage banking activities, net — 59,566 — 59,566 Investment fair value changes, net (24,693 ) — (996 ) (25,689 ) Other income, net 12,433 — 441 12,874 Realized gains, net 27,041 — — 27,041 Total non-interest income, net 14,781 59,566 (555 ) 73,792 Direct operating expenses (10,357 ) (28,172 ) (44,253 ) (82,782 ) Provision for income taxes (3,741 ) (7,347 ) — (11,088 ) Segment Contribution $ 156,180 $ 48,167 $ (84,747 ) Net Income $ 119,600 Non-cash amortization income (expense), net $ 16,849 $ (181 ) $ (4,289 ) $ 12,379 Year Ended December 31, 2017 (In Thousands) Investment Portfolio Mortgage Banking Corporate/ 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 Investment fair value changes, net 18,414 — (8,040 ) 10,374 Other income, net 12,436 — — 12,436 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 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 Investment fair value changes, net (24,367 ) — (4,207 ) (28,574 ) Other income, net 20,691 — — 20,691 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 (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. The following table presents the components of Corporate/Other for the years ended December 31, 2018 , 2017 , and 2016 . Table 23.2 – Components of Corporate/Other Years Ended December 31, 2018 2017 2016 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 20,036 $ 991 $ 21,027 $ 19,407 $ 581 $ 19,988 $ 19,537 $ 957 $ 20,494 Interest expense (16,519 ) (44,447 ) (60,966 ) (14,789 ) (39,968 ) (54,757 ) (13,103 ) (38,237 ) (51,340 ) Net interest income (loss) 3,517 (43,456 ) (39,939 ) 4,618 (39,387 ) (34,769 ) 6,434 (37,280 ) (30,846 ) Non-interest income Mortgage banking activities, net — — — — — — — (2,062 ) (2,062 ) Investment fair value changes, net (1,016 ) 20 (996 ) (8,027 ) (13 ) (8,040 ) (4,200 ) (7 ) (4,207 ) Other income, net — 441 441 — — — — — — Realized gains, net — — — — (752 ) (752 ) — 292 292 Total non-interest (loss) income, net (1,016 ) 461 (555 ) (8,027 ) (765 ) (8,792 ) (4,200 ) (1,777 ) (5,977 ) Direct operating expenses — (44,253 ) (44,253 ) — (46,015 ) (46,015 ) — (55,113 ) (55,113 ) Total $ 2,501 $ (87,248 ) $ (84,747 ) $ (3,409 ) $ (86,167 ) $ (89,576 ) $ 2,234 $ (94,170 ) $ (91,936 ) (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, 2018 and December 31, 2017. Table 23.3 – Supplemental Segment Information (In Thousands) Investment Portfolio Mortgage Banking Corporate/ Other Total December 31, 2018 Residential loans $ 5,685,983 $ 1,048,801 $ 519,958 $ 7,254,742 Business purpose residential loans 112,798 28,460 — 141,258 Multifamily loans 2,144,598 — — 2,144,598 Real estate securities 1,452,494 — — 1,452,494 Other investments 427,764 — 10,754 438,518 Total assets 10,093,993 1,103,090 740,323 11,937,406 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 Other investments 63,598 — — 63,598 Total assets 4,743,873 1,453,069 842,880 7,039,822

Quarterly Financial Data - Unau

Quarterly Financial Data - Unaudited	12 Months Ended
	Dec. 31, 2018
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, 2018 Operating results: Interest income $ 119,725 $ 99,397 $ 82,976 $ 76,619 Interest expense (84,961 ) (64,351 ) (48,213 ) (41,514 ) Net interest income 34,764 35,046 34,763 35,105 Non-interest income (17,679 ) 32,284 19,521 39,666 Operating expenses (19,253 ) (21,490 ) (19,009 ) (23,030 ) Net (loss) income (913 ) 40,921 32,747 46,845 Per share data: Net (loss) income – basic $ (0.02 ) $ 0.49 $ 0.42 $ 0.60 Net (loss) income – diluted (0.02 ) 0.42 0.38 0.50 Regular dividends declared per common share 0.30 0.30 0.30 0.28 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

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On January 22, 2019, we exercised our option to acquire the remaining 80% interest in 5 Arches for a combination of cash and common stock totaling $40 million . A portion of this remaining consideration is contingent upon 5 Arches achieving certain origination volumes over the next two years. This acquisition is expected to close in the first quarter of 2019, subject to customary closing conditions. We have owned a 20% interest in 5 Arches since May 2018, as described in Note 10. On January 29, 2019, we invested in a limited partnership created to acquire $1 billion of floating rate, light-renovation multifamily loans from Freddie Mac. We committed to fund an aggregate of $78 million to the partnership and have funded approximately $20 million as of February 28, 2019. Freddie Mac is providing a debt facility to finance loans purchased by the partnership. After the partnership's acquisitions have reached a specific threshold, the partnership and Freddie Mac may agree to include the related loans in a Freddie Mac-sponsored securitization. The limited partners may acquire subordinate securities issued in such securitization. On January 29, 2019, we sold 11,500,000 shares of common stock in an underwritten public offering, resulting in net proceeds of approximately $177 million .

Schedule IV - Mortgage Loans On

Schedule IV - Mortgage Loans On Real Estate	12 Months Ended
	Dec. 31, 2018
SEC Schedule, 12-29, Real Estate Companies, Investment in 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 Principal Amount Subject to Delinquent Principal or Interest Residential Loans Held-for-Investment At Redwood (1) : Hybrid ARM loans 385 2.63 % to 6.38% 2043-03 - 2048-10 $ 309,747 $ — Fixed loans 2,911 2.75 % to 6.75% 2027-07 - 2048-11 2,074,185 1,224 At Legacy Sequoia (2) : ARM loans 2,620 1.25 % to 5.63% 2019-02 - 2036-05 511,447 13,955 Hybrid ARM loans 21 2.63 % to 5.00% 2033-07 - 2034-11 8,511 — At Sequoia Choice (2) : Fixed loans 2,800 2.75 % to 6.50% 2035-04 - 2048-09 2,079,382 1,905 At Freddie Mac SLST (3) : Fixed loans 7,900 2.00 % to 10.50% 2018-12 - 2058-11 1,222,669 50,528 Total Residential Loans Held-for-Investment $ 6,205,941 $ 67,612 Residential Loans Held-for-Sale (4) : ARM loans 2 4.00 % to 4.13% 2032-11 - 2032-11 $ 111 $ — Hybrid ARM loans 108 3.50 % to 7.38% 2047-04 - 2049-01 89,406 — Fixed loans 1,376 3.13 % to 7.00% 2029-04 - 2049-01 959,284 747 Total Residential Loans Held-for-Sale $ 1,048,801 $ 747 Single-Family Rental Loans Held-for-Sale (4) : Fixed loans 11 5.62 % to 7.47% 2023-09 - 2028-12 $ 28,460 $ — Total Single-Family Rental Loans Held-for-Sale $ 28,460 $ — Residential Bridge Loans Held-for-Investment (4) : Fixed loans 157 7.50 % to 12.00% 2018-07 - 2020-05 $ 112,798 $ 12,134 Total Residential Bridge Loans Held-for-Investment $ 112,798 $ 12,134 Multifamily Loans Held-for-Investment (3) : At Freddie Mac K-Series: Fixed loans 162 3.29 % to 4.73% 2023-01 - 2027-01 $ 2,144,598 $ — Total Multifamily Loans Held-for-Investment $ 2,144,598 $ — (1) For our held-for-investment residential loans at Redwood, the aggregate tax basis for Federal income tax purposes at December 31, 2018 was $2.42 billion . (2) For our held-for-investment loans at consolidated Legacy Sequoia and Sequoia Choice entities, the aggregate tax basis for Federal income tax purposes at December 31, 2018 was zero, as the transfers of these loans into securitizations were treated as sales for tax purposes. (3) Our held-for-investment loans at Freddie Mac SLST and Freddie Mac K-Series entities were consolidated for GAAP purposes. For tax purposes, we acquired the underlying real estate securities and therefore, the tax basis in these loans is zero at December 31, 2018. (4) The aggregate tax basis for Federal income tax purposes of our mortgage loans held at Redwood approximates the carrying values, as disclosed in the schedule. The following table summarizes the changes in the carrying amount of mortgage loans on real estate during the years ended December 31, 2018, 2017, and 2016. Years Ended December 31, (In Thousands) 2018 2017 2016 Balance at beginning of period $ 5,115,210 $ 3,890,751 $ 4,331,450 Additions during period: Originations/acquisitions 10,607,896 5,741,427 4,983,049 Net discount accretion — — 330 Deductions during period: Sales (5,426,304 ) (3,982,683 ) (4,509,644 ) Principal repayments (843,984 ) (576,620 ) (879,188 ) Reversal of provision for loan losses — — 7,102 Transfers to REO (4,104 ) (4,219 ) (11,566 ) Deconsolidation adjustments — — (6,871 ) Changes in fair value, net 91,884 46,554 (23,911 ) Balance at end of period $ 9,540,598 $ 5,115,210 $ 3,890,751

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation	The consolidated financial statements presented herein are at December 31, 2018 and December 31, 2017 , and for the years ended December 31, 2018 , 2017 , and 2016 . 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, 2018 and 2017, 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"). In addition, we consolidated the assets and liabilities of certain third-party Freddie Mac K-Series securitizations beginning in the third quarter of 2018, and the assets and liabilities of one third-party Freddie Mac SLST securitization beginning in the fourth quarter of 2018. 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 purchased or retained, although for the consolidated Sequoia entities 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 and Freddie Mac SLST entities are shown under Residential loans held-for-investment at fair value, and the underlying loans at the consolidated Freddie Mac K-Series are shown under Multifamily 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 14 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, MSRs, servicer advance investments, and excess 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, Freddie Mac SLST, and Freddie Mac K-Series 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. 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. 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 for these loans 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 Federal Home Loan Bank of Chicago ("FHLBC") member subsidiary and pledged as collateral for borrowings made from the FHLBC. As of December 31, 2018 , our current intent is to hold these loans for longer-term investment while they are financed by the FHLBC. In addition, we record residential loans held at consolidated Sequoia and Freddie Mac SLST entities at fair value. In accordance with accounting guidance for CFEs, we use the fair value of the ABS issued by these 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 for these loans are recurring and are reported through our consolidated statements of income in Investment fair value changes, net. Business Purpose Residential Loans at Fair Value Business purpose residential loans include loans to investors in single-family rental properties ("Single-family rental loans") and loans to investors rehabilitating and reselling or renting residential properties ("Residential bridge loans"). Our single-family rental loans are held-for-sale at fair value, as we have purchased these loans with the intent to sell to third parties or transfer to securitization entities. Residential bridge loans generally have a term of less than two years and are carried as held-for-investment at fair value, as we generally intend to hold these loans to maturity. 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, unless in the case of residential bridge loans, they are both well-secured and in the process of collection. 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 reported through our consolidated statements of income in Mortgage banking activities, net and Investment fair value changes, net for single-family rental loans and residential bridge loans, respectively. Multifamily Loans, Held-for-Investment at Fair Value Multifamily loans are mortgage loans secured by multifamily properties, held in Freddie Mac-sponsored K-series securitization trusts that we consolidate. In accordance with accounting guidance for collateralized financing entities ("CFEs"), we use the fair value of the ABS issued by the Freddie Mac K-Series 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 for the assets and liabilities of these trusts 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 on our consolidated statements of income.
Real Estate Securities, at Fair Value	Our securities primarily consist of residential mortgage-backed securities (“RMBS”) as well as commercial mortgage-backed securities, which are primiarly comprised of investments in multifamily securities. We classify our real estate securities as trading or available-for-sale securities. Nearly all of our residential 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. The multifamily securities we invest in are primarily subordinate positions in securitizations sponsored by Freddie Mac that are comprised of loans collateralized by multifamily properties. We may also invest in other third-party sponsored commercial mortgage-backed securities. 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.
Other Investments	Excess MSRs Our excess MSR investments represent the right to receive a portion of mortgage servicing cash flows in excess of amounts paid for the underlying mortgage loans to be serviced. As owners of excess MSRs, we are not required to be a licensed servicer, and we are not required to assume any servicing duties, advance obligations or liabilities associated with the loan pool underlying the MSR. We have elected to record these investments at fair value. We recognize income from Excess MSRs when it is earned and deemed collectible and record the income as a component of Other interest income in our consolidated statements of income. Changes in fair value are recurring and are reported through our consolidated statements of income in Investment fair value changes, net. Investment in 5 Arches During 2018, we acquired a 20% minority interest in 5 Arches, LLC ("5 Arches"), an originator and asset manager of business purpose residential mortgage loans. We account for our ownership interest in 5 Arches using the equity method of accounting as we are able to exert significant influence over but do not control the activities of the investee. We monitor the financial performance of 5 Arches and periodically evaluate this investment for impairment. We have elected to record our share of earnings or losses from 5 Arches on a one-quarter lag. Servicer Advance Investments Our servicer advance investments are comprised of outstanding servicer advances receivable, the requirement to purchase all future servicer advances made with respect to a specified pool of residential mortgage loans and a fee component of the related MSR. We have elected to record these investments at fair value. We recognize income from our servicer advance investments when earned and deemed collectible and record the income as a component of Other interest income in our consolidated statements of income. Our servicer advance investments are marked-to-market on a recurring basis with changes in the fair value reported in Investment fair value changes, net on our consolidated statements of income.
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 Other income, 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, cash held at our consolidated Servicing Investment entities, 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, 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 Other income, 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. Financial Futures 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, security 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, pledged collateral, investment receivable, fixed assets and leasehold improvements, and REO. Other liabilities primarily consists of accrued compensation, payable to minority partner, guarantee obligations, deferred tax liabilities, margin payable, and residential loan and MSR repurchase reserves. See Note 12 for further discussion. 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, net, 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, 2018 and December 31, 2017 , assets of such SPEs totaled $47 million and $48 million , respectively, and liabilities of such SPEs totaled $17 million and $19 million , respectively. See Note 16 for further discussion on loss contingencies — risk-sharing. REO REO property acquired through, or in lieu of, foreclosure is initially recorded at fair value, and subsequently reported at the lower of its carrying amount or fair value (less estimated cost to sell). Changes in the fair value of an REO property that has a fair value at or below its carrying amount are recorded in 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, Sequoia Choice, Freddie Mac K-Series, and Freddie Mac SLST 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 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 2018, our shareholders approved an amendment to the 2014 Redwood Trust, Inc. Incentive Plan (“Incentive Plan”) for executive officers, employees, and non-employee directors, which increased the number of shares available under the 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 generally 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 2018, our Board of Directors approved an amendment to our 2002 Executive Deferred Compensation Plan (“EDCP”) to increase the number of shares available to 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, 2018 , 2017 , and 2016 were $0.6 million , $0.5 million , and $0.6 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 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. We adopted this guidance, as required, in the first quarter of 2018, which did not 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. We adopted this guidance, as required, in the first quarter of 2018, which did not have a material impact on our results of operations but impacted the presentation of the statements of cash flows and related footnote disclosures. 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. We adopted this guidance, as required, in the first quarter of 2018, which did not 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. We adopted this guidance, as required, in the first quarter of 2018, which did not have a material impact on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities." This new guidance amends accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. This new guidance also amends certain disclosure requirements associated with the fair value of financial instruments and it is effective for fiscal years beginning after December 15, 2017. In February 2018, the FASB issued ASU 2018-03, "Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which clarified certain aspects of the guidance issued in ASU 2016-01. We adopted this guidance, as required, in the first quarter of 2018. This did not have a material impact on our consolidated financial statements as our investments in debt securities and loans were not subject to the amendments in this ASU. In accordance with this guidance, we amended certain fair value disclosures related to financial instruments that are carried at amortized cost on the consolidated balance sheets. 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. 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. We adopted this guidance, as required, in the first quarter of 2018. This did not have a material impact on our consolidated financial statements as nearly all of our income is generated from financial instruments, which are explicitly scoped out of these standards. Other Recent Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." This new guidance amends previous guidance by removing and modifying certain existing fair value disclosure requirements, while adding other new disclosure requirements. This new guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted and entities may elect to early adopt the removal or modification of disclosures immediately and delay adoption of the new disclosure requirements until their effective date. 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 July 2018, the FASB issued ASU 2018-09, "Codification Improvements." This new guidance is intended to clarify, correct, and make minor improvements to the FASB Accounting Standards Codification. The transition and effective dates are based on the facts and circumstances of each amendment, with some amendments becoming effective upon issuance of this ASU and others becoming effective for annual periods beginning after December 15, 2018. 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 February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). 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 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. Additionally, in October 2018, the FASB issued ASU 2018-16, "Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes," which permits the use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815. The amendments in this update are required to be adopted concurrently with the amendments in ASU 2017-12. We plan to adopt this new guidance by the required date and we do not anticipate that this update will have a material impact 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 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 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 after December 15, 2018. In November 2018, the FASB issued ASU 2018-19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses," which clarifies the scope of the amendments in ASU 2016-13. We currently have only a small balance of loans receivable that are not carried at fair value and would be subject to this new guidance for allowance for credit losses. 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. In July 2018, the FASB issued ASU 2018-10, "Codification Improvements to Topic 842, Leases," which provides more specific guidance on certain aspects of Topic 842. Additionally, in July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842): Targeted Improvements." This new ASU introduces an additional transition method which allows entities to apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As discussed in Note 16 , our only material leases are those related to our leased office space, for which future payments under these leases totaled $16 million at December 31, 2018. 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.
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, 2018 and December 31, 2017 . 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, 2018 Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 28,211 $ — $ 28,211 $ (28,211 ) $ — $ — TBAs 4,665 — 4,665 (3,391 ) (835 ) 439 Total Assets $ 32,876 $ — $ 32,876 $ (31,602 ) $ (835 ) $ 439 Liabilities (2) Interest rate agreements $ (70,908 ) $ — $ (70,908 ) $ 28,211 $ 42,697 $ — TBAs (13,215 ) — (13,215 ) 3,391 5,620 (4,204 ) Loan warehouse debt (860,650 ) — (860,650 ) 860,650 — — Security repurchase agreements (988,890 ) — (988,890 ) 988,890 — — Total Liabilities $ (1,933,663 ) $ — $ (1,933,663 ) $ 1,881,142 $ 48,317 $ (4,204 ) 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 ) (1) Amounts presented in these columns are limited in total to the net amount of assets or liabilities presented in the prior column by instrument. In certain cases, there is excess cash collateral or financial assets we have pledged to a counterparty (which may, in certain circumstances, be a clearinghouse) that exceed the financial liabilities subject to a master netting arrangement or similar agreement. Additionally, in certain cases, counterparties may have pledged excess cash collateral to us that exceeds our corresponding financial assets. In each case, any of these excess amounts are excluded from the table although they are separately reported in our consolidated balance sheets as assets or liabilities, respectively. (2) Interest rate agreements, TBAs, and futures are components of derivatives instruments on our consolidated 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 Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2018
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, 2018 and December 31, 2017 . 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, 2018 Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 28,211 $ — $ 28,211 $ (28,211 ) $ — $ — TBAs 4,665 — 4,665 (3,391 ) (835 ) 439 Total Assets $ 32,876 $ — $ 32,876 $ (31,602 ) $ (835 ) $ 439 Liabilities (2) Interest rate agreements $ (70,908 ) $ — $ (70,908 ) $ 28,211 $ 42,697 $ — TBAs (13,215 ) — (13,215 ) 3,391 5,620 (4,204 ) Loan warehouse debt (860,650 ) — (860,650 ) 860,650 — — Security repurchase agreements (988,890 ) — (988,890 ) 988,890 — — Total Liabilities $ (1,933,663 ) $ — $ (1,933,663 ) $ 1,881,142 $ 48,317 $ (4,204 ) 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 ) (1) Amounts presented in these columns are limited in total to the net amount of assets or liabilities presented in the prior column by instrument. In certain cases, there is excess cash collateral or financial assets we have pledged to a counterparty (which may, in certain circumstances, be a clearinghouse) that exceed the financial liabilities subject to a master netting arrangement or similar agreement. Additionally, in certain cases, counterparties may have pledged excess cash collateral to us that exceeds our corresponding financial assets. In each case, any of these excess amounts are excluded from the table although they are separately reported in our consolidated balance sheets as assets or liabilities, respectively. (2) Interest rate agreements, TBAs, and futures are components of derivatives instruments on our consolidated 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, 2018
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, 2018 Legacy Sequoia Sequoia Choice Freddie Mac SLST Freddie Mac K-Series Servicing Investment Total Consolidated VIEs (Dollars in Thousands) Residential loans, held-for-investment $ 519,958 $ 2,079,382 $ 1,222,669 $ — $ — $ 3,822,009 Multifamily loans, held-for-investment — — — 2,144,598 — 2,144,598 Other investments — — — — 312,688 312,688 Restricted cash 146 1,022 — — 25,363 26,531 Accrued interest receivable 822 8,988 3,926 6,595 1,091 21,422 REO 3,943 — — — — 3,943 Total Assets $ 524,869 $ 2,089,392 $ 1,226,595 $ 2,151,193 $ 339,142 $ 6,331,191 Short-term debt $ — $ — $ — $ — $ 262,740 $ 262,740 Accrued interest payable 571 7,180 2,907 6,239 483 17,380 Accrued expenses and other liabilities — 1,022 — — 18,592 19,614 Asset-backed securities issued 512,240 1,885,010 993,748 2,019,075 — 5,410,073 Total Liabilities $ 512,811 $ 1,893,212 $ 996,655 $ 2,025,314 $ 281,815 $ 5,709,807 Number of VIEs 20 6 1 3 3 33 December 31, 2017 Legacy Sequoia Sequoia Choice Freddie Mac SLST Freddie Mac K-Series Servicing Investment 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
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, 2018 and 2017 . Table 4.2 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Years Ended December 31, (In Thousands) 2018 2017 Principal balance of loans transferred $ 3,188,358 $ 2,573,789 Trading securities retained, at fair value 52,859 66,321 AFS securities retained, at fair value 7,739 13,341 MSRs recognized — 7,123
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, 2018 and 2017 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) 2018 2017 Proceeds from new transfers $ 3,175,900 $ 2,563,499 MSR fees received 13,417 14,302 Funding of compensating interest, net (122 ) (151 ) Cash flows received on retained securities 28,614 27,156
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 2018 and 2017 . Table 4.4 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Year Ended December 31, 2018 Year Ended December 31, 2017 At Date of Securitization MSRs Senior IO Securities Subordinate Securities MSRs Senior IO Securities Subordinate Securities Prepayment rates N/A 9 % 10 % 9 % 10 % 10 % Discount rates N/A 14 % 5 % 11 % 14 % 5 % Credit loss assumptions N/A 0.20 % 0.20 % N/A 0.25 % 0.25 %
Unconsolidated Variable Interest Entity's Sponsored by Redwood Summary	The following table presents additional information at December 31, 2018 and December 31, 2017 , 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, 2018 December 31, 2017 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 129,111 $ 101,426 Subordinate securities, classified as AFS 162,314 219,255 Mortgage servicing rights 58,572 60,980 Maximum loss exposure (1) $ 349,997 $ 381,661 Assets transferred: Principal balance of loans outstanding $ 10,580,216 $ 8,364,148 Principal balance of loans 30+ days delinquent 21,805 27,926 (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, 2018 and December 31, 2017 . Table 4.6 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood December 31, 2018 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2018 $ 58,572 $ 61,178 $ 230,247 Expected life (in years) (2) 8 7 15 Prepayment speed assumption (annual CPR) (2) 7 % 10 % 9 % Decrease in fair value from: 10% adverse change $ 1,668 $ 2,151 $ 201 25% adverse change 4,027 5,127 1,372 Discount rate assumption (2) 11 % 12 % 6 % Decrease in fair value from: 100 basis point increase $ 2,323 $ 2,190 $ 21,982 200 basis point increase 4,493 4,226 40,641 Credit loss assumption (2) N/A 0.20 % 0.20 % Decrease in fair value from: 10% higher losses N/A $ — $ 1,387 25% higher losses N/A — 3,471 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 (1) Senior securities included $61 million and $34 million of interest-only securities at December 31, 2018 and December 31, 2017 , 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, 2018 , grouped by asset type. Table 4.7 – Third-Party Sponsored VIE Summary (Dollars in Thousands) December 31, 2018 Mortgage-Backed Securities Senior $ 185,107 Mezzanine 547,249 Subordinate 428,713 Total Mortgage-Backed Securities 1,161,069 Excess MSR 15,092 Total Investments in Third-Party Sponsored VIEs $ 1,176,161

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2018
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, 2018 and December 31, 2017 . Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities December 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (In Thousands) Assets Residential loans, held-for-sale At fair value $ 1,048,690 $ 1,048,690 $ 1,427,052 $ 1,427,052 At lower of cost or fair value 111 131 893 993 Residential loans, held-for-investment 6,205,941 6,205,941 3,687,265 3,687,265 Business purpose residential loans 141,258 141,258 — — Multifamily loans 2,144,598 2,144,598 — — Trading securities 1,118,612 1,118,612 968,844 968,844 Available-for-sale securities 333,882 333,882 507,666 507,666 Servicer advance investments (1) 300,468 300,468 — — MSRs (1) 60,281 60,281 63,598 63,598 Participation in loan warehouse facility (1) 39,703 39,703 — — Excess MSRs (1) 27,312 27,312 — — Cash and cash equivalents 175,764 175,764 144,663 144,663 Restricted cash 29,313 29,313 2,144 2,144 Accrued interest receivable 47,105 47,105 27,013 27,013 Derivative assets 35,789 35,789 15,718 15,718 REO (2) 3,943 4,396 3,354 3,806 Margin receivable (2) 100,773 100,773 85,044 85,044 FHLBC stock (2) 43,393 43,393 43,393 43,393 Guarantee asset (2) 2,618 2,618 2,869 2,869 Pledged collateral (2) 42,433 42,433 42,615 42,615 Liabilities Short-term debt facilities $ 1,937,920 $ 1,937,920 $ 1,688,412 $ 1,688,412 Short-term debt - servicer advance financing 262,740 262,740 — — Accrued interest payable 42,528 42,528 18,435 18,435 Margin payable (3) 835 835 390 390 Guarantee obligation (3) 16,711 16,774 19,487 18,878 Derivative liabilities 84,855 84,855 63,081 63,081 ABS issued at fair value 5,410,073 5,410,073 1,164,585 1,164,585 FHLBC long-term borrowings 1,999,999 1,999,999 1,999,999 1,999,999 Convertible notes, net 633,196 618,271 686,759 692,369 Trust preferred securities and subordinated notes, net 138,582 102,533 138,535 103,230 (1) These investments are included in Other investments on our consolidated balance sheets. (2) These assets are included in Other assets on our consolidated balance sheets. (3) 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, 2018 and December 31, 2017 , 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, 2018 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 7,254,631 $ — $ — $ 7,254,631 Business purpose residential loans 141,258 — — 141,258 Multifamily loans 2,144,598 — — 2,144,598 Trading securities 1,118,612 — — 1,118,612 Available-for-sale securities 333,882 — — 333,882 Servicer advance investments 300,468 — — 300,468 MSRs 60,281 — — 60,281 Excess MSRs 27,312 — — 27,312 Derivative assets 35,789 4,665 28,211 2,913 Pledged collateral 42,433 42,433 — — FHLBC stock 43,393 — 43,393 — Guarantee asset 2,618 — — 2,618 Liabilities Derivative liabilities $ 84,855 $ 13,215 $ 70,908 $ 732 ABS issued 5,410,073 — — 5,410,073 December 31, 2017 Carrying 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
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, 2018 and December 31, 2017 . Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets Residential Loans Business Purpose Residential Loans Multifamily Loans Trading Securities AFS Securities Servicer Advance Investments MSRs Excess MSRs Guarantee Asset (In Thousands) Beginning balance - December 31, 2017 $ 5,114,317 $ — $ — $ 968,844 $ 507,666 $ — $ 63,598 $ — $ 2,869 Acquisitions 8,338,724 167,777 2,099,916 653,739 7,739 395,813 328 25,489 — Sales (5,425,168 ) — — (438,304 ) (143,644 ) — (1,077 ) — — Principal paydowns (814,122 ) (27,382 ) (1,873 ) (40,050 ) (44,446 ) (94,644 ) — — — Gains (losses) in net income, net 44,627 863 46,555 (8,436 ) 41,051 (701 ) (2,568 ) 1,823 (251 ) Unrealized losses in OCI, net — — — — (34,484 ) — — — — Other settlements, net (2) (3,747 ) — — (17,181 ) — — — — — Ending balance - December 31, 2018 $ 7,254,631 $ 141,258 $ 2,144,598 $ 1,118,612 $ 333,882 $ 300,468 $ 60,281 $ 27,312 $ 2,618 Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (continued) Liabilities Derivatives (1) ABS Issued (In Thousands) Beginning balance - December 31, 2017 $ 1,714 $ 1,164,585 Acquisitions — 4,613,168 Principal paydowns — (459,173 ) Gains (losses) in net income, net (1,214 ) 91,493 Other settlements, net (2) 1,681 — Ending balance - December 31, 2018 $ 2,181 $ 5,410,073 Assets Liabilities (In Thousands) Residential Loans Trading Securities AFS Securities MSRs Guarantee Asset Derivatives (1) ABS Issued 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 gains 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 (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 settlement of forward sale commitments and the transfer of the fair value of loan purchase commitments at the time loans are acquired to the basis of residential loans. Other settlements, net for our trading securities relates to the consolidation of the Freddie Mac K-Series entities during the second half of 2018.
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, 2018 , 2017 , and 2016 . Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the years ended December 31, 2018 , 2017 , and 2016 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, 2018 , 2017 , and 2016 Included in Net Income Included in Net Income Years Ended December 31, (In Thousands) 2018 2017 2016 Assets Residential loans at Redwood $ (17,757 ) $ 523 $ (17,370 ) Residential loans at consolidated Sequoia entities 24,799 17,727 (14,391 ) Residential loans at consolidated Freddie Mac SLST entity 21,295 — — Business purpose residential loans 445 — — Multifamily loans at consolidated Freddie Mac K-Series entities 46,555 — — Trading securities (12,256 ) 28,612 7,184 Available-for-sale securities (89 ) (1,011 ) (368 ) Servicer advance investments (702 ) — — MSRs 1,942 1,277 42,964 Excess MSRs 1,824 — — Loan purchase commitments 2,913 3,243 — Loan forward sale commitments — 2,177 — Other assets - Guarantee asset (251 ) (1,223 ) (1,605 ) Liabilities Loan purchase commitments $ (732 ) $ (3,706 ) $ (486 ) ABS issued (71,468 ) (29,187 ) 8,275
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, 2018 and December 31, 2017 . 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, 2018 and December 31, 2017 . Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Gain (Loss) for Year Ended December 31, 2018 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2018 Assets REO $ 2,225 $ — $ — $ 2,225 $ (131 ) Gain (Loss) for Year Ended December 31, 2017 Carrying 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 )
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, 2018 , 2017 , and 2016 . Table 5.6 – Market Valuation Gains and Losses, Net Years Ended December 31, (In Thousands) 2018 2017 2016 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ 23,144 $ 31,493 $ 5,786 Single-family rental loans held-for-sale, at fair value 453 — — Residential loan purchase and forward sale commitments (1,336 ) 37,880 25,613 Commercial loans, at fair value — — 433 Sequoia securities — — 1,455 Risk management derivatives, net 34,739 (17,529 ) 3,158 Total mortgage banking activities, net (1) $ 57,000 $ 51,844 $ 36,445 Investment Fair Value Changes, Net Residential loans held-for-investment at Redwood $ (29,573 ) $ (5,765 ) $ (23,102 ) Residential bridge loans held-for-investment (29 ) — — Trading securities (8,055 ) 39,526 9,666 Commercial loans held-for-sale — 300 (307 ) Servicer advance investments (701 ) — — Excess MSRs 1,823 — — Net investments in Legacy Sequoia entities (2) (1,016 ) (8,027 ) (4,200 ) Net investments in Sequoia Choice entities (2) 443 (323 ) — Net investment in Freddie Mac SLST entity (2) 1,271 — — Net investments in Freddie Mac K-Series entities (2) 931 — — Risk-sharing investments (434 ) (1,484 ) (1,151 ) Risk management derivatives, net 9,740 (12,842 ) (9,112 ) Impairments on AFS securities (89 ) (1,011 ) (368 ) Total investment fair value changes, net $ (25,689 ) $ 10,374 $ (28,574 ) Other Income, Net MSRs $ (2,508 ) $ (10,166 ) $ (36,372 ) Risk management derivatives, net (4,734 ) (568 ) 15,584 Total other income, net (3) $ (7,242 ) $ (10,734 ) $ (20,788 ) Total Market Valuation Gains (Losses), Net $ 24,069 $ 51,484 $ (12,917 ) (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) Other income, net presented above does not include net MSR fee income or provisions for repurchases for MSRs, 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, 2018 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 $ 2,738,346 Whole loan spread to TBA price $ 1.89 - $ 2.52 $ 2.21 Whole loan spread to swap rate 70 - 220 bps 200 bps Jumbo hybrid loans 396,274 Prepayment rate (annual CPR) 15 - 15 % 15 % Whole loan spread to swap rate 50 - 125 bps 86 bps Jumbo loans committed to sell 298,002 Whole loan committed sales price $ 100.69 - $ 101.66 $ 100.70 Loans held by Legacy Sequoia (1) 519,958 Liability price N/A N/A Loans held by Sequoia Choice (1) 2,079,382 Liability price N/A N/A Loans held by Freddie Mac SLST 1,222,669 Liability price N/A N/A Business purpose residential loans: Single-family rental loans 28,460 IO discount rate 12 - 12 % 12 % Prepayment rate (annual CPR) 2 - 10 % 3 % Senior credit spread 115 - 115 bps 115 bps Subordinate credit spread 165 - 994 bps 302 bps Senior credit support 32 - 32 % 32 % Residential bridge loans 112,798 Discount rate 7 8 % 7 % Multifamily loans held by Freddie Mac K-Series (1) 2,144,598 Liability price N/A N/A Trading and AFS securities 1,452,494 Discount rate 3 - 14 % 6 % Prepayment rate (annual CPR) — - 60 % 10 % Default rate — - 27 % 2 % Loss severity — - 40 % 21 % Servicer advance investments 300,468 Discount rate 5 - 5 % 5 % Prepayment rate (annual CPR) 8 - 16 % 14 % Expected remaining life (2) 1 - 1 year 1 year Mortgage servicing amount 7 - 14 bps 10 bps MSRs 60,281 Discount rate 11 - 29 % 11 % Prepayment rate (annual CPR) 4 - 29 % 7 % Per loan annual cost to service $ 82 - $ 82 $ 82 Excess MSRs 27,312 Discount rate 12 - 19 % 17 % Prepayment rate (annual CPR) 8 - 15 % 11 % Excess mortgage servicing amount 7 - 18 bps 11 bps Guarantee asset 2,618 Discount rate 11 - 11 % 11 % Prepayment rate (annual CPR) 8 - 8 % 8 % REO 2,225 Loss severity 2 - 50 % 18 % Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments (continued) December 31, 2018 Fair Value Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average Assets (continued) Loan purchase commitments, net $ 2,181 MSR multiple 0.8 - 4.9 x 2.7 x Pull-through rate 10 - 98 % 69 % Whole loan spread to TBA price $ 1.89 - $ 2.52 $ 2.51 Whole loan spread to swap rate - fixed rate 70 - 220 bps 198 bps Prepayment rate (annual CPR) 15 - 15 % 15 % Whole loan spread to swap rate - hybrid 60 - 100 bps 77 bps Liabilities ABS issued (1) At consolidated Sequoia entities 2,397,250 Discount rate 4 - 15 % 4 % Prepayment rate (annual CPR) 8 - 50 % 18 % Default rate — - 14 % 2 % Loss severity 20 - 44 % 21 % At consolidated Freddie Mac SLST entity 993,748 Discount rate 3 - 4 % 3 % Prepayment rate (annual CPR) 6 - 6 % 6 % Default rate 2 - 2 % 2 % Loss severity 30 - 30 % 30 % At consolidated Freddie Mac K-Series entities 2,019,075 Discount rate 3 - 9 % 3 % Prepayment rate (annual CPR) — - — % — % Default rate 1 - 1 % 1 % Loss severity 20 - 20 % 20 % (1) The fair value of the loans held by consolidated 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) Represents the estimated average duration of outstanding servicer advances at a given point in time (not taking into account new advances made with respect to the pool).

Residential Loans (Tables)

Residential Loans (Tables) - Residential loans	12 Months Ended
	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Summary of Classifications and Carrying Value of Loans	The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at December 31, 2018 and December 31, 2017 . Table 6.1 – Classifications and Carrying Values of Residential Loans December 31, 2018 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia Choice SLST Total Held-for-sale At fair value $ 1,048,690 $ — $ — $ — $ 1,048,690 At lower of cost or fair value 111 — — — 111 Total held-for-sale 1,048,801 — — — 1,048,801 Held-for-investment at fair value 2,383,932 519,958 2,079,382 1,222,669 6,205,941 Total Residential Loans $ 3,432,733 $ 519,958 $ 2,079,382 $ 1,222,669 $ 7,254,742 December 31, 2017 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia Choice SLST 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
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, 2018 and December 31, 2017 . Table 6.2 – Geographic Concentration of Residential Loans December 31, 2018 Geographic Concentration Held-for-Sale Held-for- Held-for- Investment at Sequoia Choice Held-for-Investment at Freddie Mac SLST Held-for- California 40 % 19 % 39 % 12 % 47 % Washington 10 % 1 % 7 % 2 % 5 % Texas 6 % 6 % 8 % 3 % 8 % Florida 4 % 13 % 4 % 10 % 5 % New Jersey 2 % 4 % 1 % 7 % 1 % New York 3 % 10 % 5 % 10 % 3 % Other states (none greater than 5%) 35 % 47 % 36 % 56 % 31 % Total 100 % 100 % 100 % 100 % 100 % December 31, 2017 Geographic Concentration Held-for-Sale Held-for- Held-for- Held-for-Investment at Freddie Mac SLST 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 %
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, 2018 and December 31, 2017 . Table 6.3 – Product Types and Characteristics of Residential Loans December 31, 2018 (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 12 2.88 % to 4.88% 2043-09 - 2046-01 $ 2,190 $ 59 $ — $ 251 to $500 59 2.63 % to 5.75% 2043-08 - 2048-08 23,986 — — $ 501 to $750 116 2.88 % to 5.75% 2043-03 - 2048-08 73,360 692 — $ 751 to $1,000 129 2.88 % to 6.38% 2043-09 - 2048-09 111,879 — — over $1,000 69 3.00 % to 5.50% 2040-10 - 2048-10 92,151 1,112 — 385 303,566 1,863 — Fixed loans $ — to $250 36 3.30 % to 5.08% 2028-11 - 2047-12 6,737 — — $ 251 to $500 679 2.75 % to 5.75% 2027-09 - 2048-11 292,730 — — $ 501 to $750 1,213 2.75 % to 6.75% 2027-10 - 2048-11 746,503 1,320 1,224 $ 751 to $1,000 599 2.75 % to 6.13% 2027-07 - 2048-11 517,075 903 — over $1,000 384 2.80 % to 5.88% 2031-04 - 2048-11 518,719 2,000 — 2,911 2,081,764 4,223 1,224 Total HFI at Redwood: 3,296 $ 2,385,330 $ 6,086 $ 1,224 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,988 1.25 % to 5.50% 2019-02 - 2035-11 $ 206,490 $ 7,179 $ 3,952 $ 251 to $500 424 1.25 % to 5.63% 2023-05 - 2036-05 148,154 5,989 4,368 $ 501 to $750 110 1.63 % to 4.50% 2022-01 - 2035-02 67,471 1,309 1,880 $ 751 to $1,000 61 1.63 % to 4.38% 2027-11 - 2036-03 51,918 791 2,561 over $1,000 37 1.63 % to 4.38% 2027-12 - 2036-05 61,710 1,023 1,194 2,620 535,743 16,291 13,955 Hybrid ARM loans: $ — to $250 4 4.63 % to 5.00% 2033-08 - 2034-06 769 — — $ 251 to $500 10 2.63 % to 4.88% 2033-07 - 2034-06 3,675 — — $ 501 to $750 6 4.38 % to 5.00% 2033-08 - 2034-11 3,667 — — over $1,000 1 4.88 % to 4.88% 2033-09 - 2033-09 1,355 — — 21 9,466 — — Total HFI at Legacy Sequoia: 2,641 $ 545,209 $ 16,291 $ 13,955 Held-for-Investment at Sequoia Choice: Fixed loans: $ — to $250 29 2.75 % to 5.63% 2038-03 - 2048-09 $ 5,484 $ — $ — $ 251 to $500 336 3.13 % to 6.13% 2037-12 - 2048-09 149,917 1,419 925 $ 501 to $750 1,363 3.13 % to 6.38% 2037-02 - 2048-09 841,692 3,633 — $ 751 to $1,000 761 3.25 % to 6.50% 2035-04 - 2048-09 659,845 3,549 980 over $1,000 311 3.13 % to 5.88% 2038-01 - 2048-09 384,072 2,188 — Total HFI at Sequoia Choice: 2,800 $ 2,041,010 $ 10,789 $ 1,905 Table 6.3 – Product Types and Characteristics of Residential Loans (continued) December 31, 2018 (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 Freddie Mac SLST: Fixed loans: $ — to $250 6,404 2.00 % to 10.50% 2018-12 - 2058-10 $ 830,118 $ 130,608 $ 30,686 $ 251 to $500 1,469 2.00 % to 7.38% 2033-08 - 2058-11 466,222 66,706 19,319 $ 501 to $750 27 2.00 % to 5.88% 2050-02 - 2057-12 14,634 1,631 523 Total HFI at Freddie Mac SLST: 7,900 $ 1,310,974 $ 198,945 $ 50,528 Held-for-Sale: ARM loans $ — to $250 2 4.00 % to 4.13% 2032-11 - 2032-11 $ 150 $ — $ — Hybrid ARM loans $ 251 to $500 8 3.88 % to 5.38% 2048-05 - 2048-12 3,795 — — $ 501 to $750 50 3.63 % to 7.38% 2048-01 - 2049-01 31,759 — — $ 751 to $1,000 27 3.88 % to 5.25% 2048-02 - 2049-01 23,478 — — over $1,000 23 3.50 % to 5.50% 2047-04 - 2048-12 28,112 — — 108 87,144 — — Fixed loans $ — to $250 6 4.38 % to 5.75% 2048-08 - 2048-11 1,180 — — $ 251 to $500 188 3.13 % to 6.38% 2029-04 - 2049-01 88,204 — — $ 501 to $750 788 3.75 % to 7.00% 2033-11 - 2049-01 475,935 559 747 $ 751 to $1,000 295 3.25 % to 6.63% 2033-12 - 2049-01 255,429 — — over $1,000 99 3.75 % to 6.13% 2032-10 - 2049-01 126,392 — — 1,376 947,140 559 747 Total Held-for-Sale 1,486 $ 1,034,434 $ 559 $ 747 Table 6.3 – Product Types and Characteristics of Residential Loans (continued) 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: $ — 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 $ — Table 6.3 – Product Types and Characteristics of Residential Loans (continued) 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-Sale: ARM loans $ — to $250 2 2.88 % to 3.00% 2032-11 - 2032-11 $ 158 $ — $ — $ 251 to $500 1 1.50 % to 1.50% 2033-10 - 2033-10 286 — — 3 444 — — Hybrid ARM loans $ 251 to $500 8 3.25 % to 3.88% 2047-07 - 2047-12 3,708 — — $ 501 to $750 44 3.00 % to 3.88% 2037-06 - 2048-01 28,165 — — $ 751 to $1,000 19 2.88 % to 4.00% 2044-11 - 2047-12 16,675 — — over $1,000 22 3.25 % to 4.00% 2044-08 - 2047-12 30,336 — — 93 78,884 — — Fixed loans $ — to $250 1 4.40 % to 4.40% 2045-07 - 2045-07 132 — — $ 251 to $500 330 3.25 % to 5.63% 2030-11 - 2048-01 153,021 495 459 $ 501 to $750 1,005 2.88 % to 6.00% 2029-08 - 2048-01 613,647 540 — $ 751 to $1,000 423 3.00 % to 6.25% 2029-05 - 2048-01 370,379 878 — over $1,000 158 3.25 % to 5.75% 2030-11 - 2048-01 192,672 — — 1,917 1,329,851 1,913 459 Total Held-for-Sale 2,013 $ 1,409,179 $ 1,913 $ 459 (1) Rate is net of servicing fee for consolidated loans for which we do not own the MSR.

Business Purpose Residential _2

Business Purpose Residential Loans (Tables) - Business purpose residential loans	12 Months Ended
	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Summary of Classifications and Carrying Value of Loans	The following table summarizes the classifications and carrying values of the business purpose residential loans owned at Redwood at December 31, 2018 and December 31, 2017 . Table 7.1 – Classifications and Carrying Values of Business Purpose Residential Loans (In Thousands) December 31, 2018 December 31, 2017 Single-family rental loans, held-for-sale at fair value $ 28,460 $ — Residential bridge loans, held-for-investment at fair value 112,798 — Total Business Purpose Residential Loans $ 141,258 $ —
Geographic Concentration of Loans Recorded on Consolidated Balance Sheet	The following table presents the geographic concentration of business purpose residential loans recorded on our consolidated balance sheets at December 31, 2018 . Table 7.2 – Geographic Concentration of Business Purpose Residential Loans December 31, 2018 Geographic Concentration Single-Family Rental Residential Bridge Florida 69 % 7 % Texas 14 % — % California — % 79 % Utah — % 5 % Other states (none greater than 5%) 17 % 9 % Total 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 business purpose residential loans recorded on our consolidated balance sheets at December 31, 2018 . Table 7.3 – Product Types and Characteristics of Business Purpose Residential Loans December 31, 2018 (In Thousands) Loan Balance Number of Loans Interest Rate Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Single-Family Rental: Fixed loans: $ 251 to $500 2 6.79 % to 7.47% 2028-08 - 2028-12 $ 787 $ — $ — $ 501 to $750 2 6.12 % to 7.25% 2023-09 - 2028-11 1,252 — — $ 751 to $1,000 3 5.91 % to 6.58% 2023-11 - 2028-12 2,488 — — over $1,000 4 5.62 % to 6.94% 2023-10 - 2025-12 23,039 — — Total Single-Family Rental: 11 $ 27,566 $ — $ — Residential Bridge: Fixed loans: $ — to $250 50 8.00 % to 12.00% 2018-07 - 2020-05 $ 7,941 $ 262 $ 695 $ 251 to $500 38 8.00 % to 10.00% 2018-09 - 2019-12 13,297 636 469 $ 501 to $750 21 7.50 % to 10.00% 2019-01 - 2019-12 12,410 1,769 — $ 751 to $1,000 19 7.50 % to 10.00% 2019-04 - 2019-12 16,937 840 — over $1,000 29 8.00 % to 10.00% 2018-09 - 2019-12 61,775 1,484 10,970 Total Residential Bridge: 157 $ 112,360 $ 4,991 $ 12,134

Multifamily Loans (Tables)

Multifamily Loans (Tables) - Multifamily loans	12 Months Ended
	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Geographic Concentration of Loans Recorded on Consolidated Balance Sheet	The following table presents the geographic concentration of multifamily loans recorded on our consolidated balance sheets at December 31, 2018 . Table 8.1 – Geographic Concentration of Multifamily Loans Geographic Concentration December 31, 2018 California 11 % Texas 9 % Arizona 8 % Georgia 6 % Other states (none greater than 5%) 66 % Total 100 %
Loan Product Type and Accompanying Loan Characteristics of Loans	T he following table displays the loan product type and accompanying loan characteristics of multifamily loans recorded on our consolidated balance sheets at December 31, 2018 . Table 8.2 – Product Types and Characteristics of Multifamily Loans December 31, 2018 (In Thousands) Loan Balance Number of Loans Interest Rate Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Fixed loans: $ 1,000 to $10,000 70 3.29 % to 4.73% 2023-02 - 2027-01 $ 394,373 $ — $ — $ 10,001 to $20,000 66 3.54 % to 4.61% 2023-09 - 2027-01 960,992 — — $ 20,001 to $30,000 16 3.65 % to 4.72% 2024-01 - 2026-12 373,036 — — $ 30,001 to $40,000 7 3.62 % to 4.71% 2025-11 - 2026-06 244,074 — — over $40,000 3 3.74 % to 4.18% 2024-10 - 2026-06 154,223 — — Total: 162 $ 2,126,698 $ — $ —

Real Estate Securities (Tables)

Real Estate Securities (Tables)	12 Months Ended
	Dec. 31, 2018
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, 2018 and December 31, 2017 . Table 9.1 – Fair Values of Real Estate Securities by Type (In Thousands) December 31, 2018 December 31, 2017 Trading $ 1,118,612 $ 968,844 Available-for-sale 333,882 507,666 Total Real Estate Securities $ 1,452,494 $ 1,476,510
Trading Securities by Collateral Type	The following table presents the fair value of trading securities by position and collateral type at December 31, 2018 and December 31, 2017 . Table 9.2 – Trading Securities by Position and Collateral Type (In Thousands) December 31, 2018 December 31, 2017 Senior $ 158,670 $ 69,974 Mezzanine 610,819 563,475 Subordinate 349,123 335,395 Total Trading Securities $ 1,118,612 $ 968,844
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, 2018 and December 31, 2017 . Table 9.3 – Available-for-Sale Securities by Position and Collateral Type (In Thousands) December 31, 2018 December 31, 2017 Senior $ 87,615 $ 179,864 Mezzanine 36,407 92,002 Subordinate 209,860 235,800 Total AFS Securities $ 333,882 $ 507,666
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, 2018 and December 31, 2017 . Table 9.4 – Carrying Value of AFS Securities December 31, 2018 (In Thousands) Senior Mezzanine Subordinate Total Principal balance $ 91,736 $ 36,852 $ 302,524 $ 431,112 Credit reserve (7,790 ) — (33,580 ) (41,370 ) Unamortized discount, net (18,460 ) (3,697 ) (129,043 ) (151,200 ) Amortized cost 65,486 33,155 139,901 238,542 Gross unrealized gains 22,178 3,252 70,458 95,888 Gross unrealized losses (49 ) — (499 ) (548 ) Carrying Value $ 87,615 $ 36,407 $ 209,860 $ 333,882 December 31, 2017 (In Thousands) Senior Mezzanine Subordinate Total Principal balance $ 189,125 $ 91,471 $ 327,549 $ 608,145 Credit reserve (8,756 ) — (37,793 ) (46,549 ) Unamortized discount, net (44,041 ) (9,407 ) (130,305 ) (183,753 ) Amortized cost 136,328 82,064 159,451 377,843 Gross unrealized gains 44,771 9,938 76,481 131,190 Gross unrealized losses (1,235 ) — (132 ) (1,367 ) Carrying Value $ 179,864 $ 92,002 $ 235,800 $ 507,666
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, 2018 and 2017 , in unamortized discount and designated credit reserves on residential AFS securities. Table 9.5 – Changes in Unamortized Discount and Designated Credit Reserves on AFS Securities Year Ended December 31, 2018 Year Ended December 31, 2017 Credit Unamortized Credit Unamortized (In Thousands) Beginning balance $ 46,549 $ 183,753 $ 47,473 $ 198,112 Amortization of net discount — (14,098 ) — (18,795 ) Realized credit losses (2,165 ) — (4,187 ) — Acquisitions 6,315 2,716 9,118 13,080 Sales, calls, other (1,850 ) (28,739 ) (3,404 ) (12,106 ) Impairments 89 — 1,011 — Transfers to (release of) credit reserves, net (7,568 ) 7,568 (3,462 ) 3,462 Ending Balance $ 41,370 $ 151,200 $ 46,549 $ 183,753
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, 2018 and December 31, 2017 . Table 9.6 – 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, 2018 $ 12,923 $ (499 ) $ 12,424 $ 7,464 $ (49 ) $ 7,415 December 31, 2017 8,637 (132 ) 8,505 28,557 (1,235 ) 27,322
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, 2018 . Table 9.7 – Significant Valuation Assumptions December 31, 2018 Range for Securities Prepayment rates 6 % - 8% Projected losses 0.20 % - 1%
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, 2018 , 2017 , and 2016 for which a portion of an OTTI was recognized in other comprehensive income. Table 9.8 – Activity of the Credit Component of Other-than-Temporary Impairments Years Ended December 31, (In Thousands) 2018 2017 2016 Balance at beginning of period $ 21,037 $ 28,261 $ 28,277 Additions Initial credit impairments 76 178 346 Subsequent credit impairments — 47 8 Reductions Securities sold, or expected to sell (1,218 ) (4,898 ) (261 ) Securities with no outstanding principal at period end (1,243 ) (2,551 ) (109 ) Balance at End of Period $ 18,652 $ 21,037 $ 28,261
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, 2018 , 2017 , and 2016 . Table 9.9 – Gross Realized Gains and Losses on AFS Securities Years Ended December 31, (In Thousands) 2018 2017 2016 Gross realized gains - sales $ 27,127 $ 13,927 $ 23,598 Gross realized gains - calls 43 677 1,210 Gross realized losses - sales (129 ) — (2,293 ) Gross realized losses - calls — (497 ) — Total Realized Gains on Sales and Calls of AFS Securities, net $ 27,041 $ 14,107 $ 22,515

Other Investments (Tables)

Other Investments (Tables)	12 Months Ended
	Dec. 31, 2018
Investments, All Other Investments [Abstract]
Summary of Other Investments	Other investments at December 31, 2018 and December 31, 2017 are summarized in the following table. Table 10.1 – Components of Other Investments (In Thousands) December 31, 2018 December 31, 2017 Servicer advance investments $ 300,468 $ — Mortgage servicing rights 60,281 63,598 Participation in loan warehouse facility 39,703 — Excess MSRs 27,312 — Investment in 5 Arches 10,754 — Total Other Investments $ 438,518 $ 63,598
Components of Servicer Advance Investments	The $287 million of servicer advance receivables were comprised of the following types of advances: Table 10.2 – Components of Servicer Advance Receivables (In Thousands) December 31, 2018 December 31, 2017 Principal and interest advances $ 144,336 $ — Escrow advances (taxes and insurance advances) 94,828 — Corporate advances 47,614 — Total Servicer Advance Receivables $ 286,778 $ —
Income from Mortgage Servicing Rights, Net	The following table presents activity for MSRs for the years ended December 31, 2018 , 2017 , and 2016 . Table 10.3 – Activity for MSRs Years Ended December 31, (In Thousands) 2018 2017 2016 Balance at beginning of period $ 63,598 $ 118,526 $ 191,976 Additions 328 8,026 25,362 Sales (1,077 ) (52,788 ) (62,440 ) Changes in fair value due to: Changes in assumptions (1) 4,434 (1,088 ) (14,512 ) Other changes (2) (7,002 ) (9,078 ) (21,860 ) Balance at End of Period $ 60,281 $ 63,598 $ 118,526 (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. The following table presents the components of our MSR income for the years ended December 31, 2018 , 2017 , and 2016 . Table 10.4 – Components of MSR Income, net Years Ended December 31, (In Thousands) 2018 2017 2016 Servicing income $ 15,372 $ 21,120 $ 41,152 Cost of sub-servicer (1,444 ) (2,828 ) (6,281 ) Net servicing fee income 13,928 18,292 34,871 Market valuation changes of MSRs (2,508 ) (10,166 ) (36,372 ) Market valuation changes of associated derivatives (1) (4,734 ) (568 ) 15,584 MSR reversal of provision for repurchases 390 302 270 MSR Income, Net $ 7,076 $ 7,860 $ 14,353 (1) MSR income, net is included in Other income, net on our consolidated statements of income.

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2018
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, 2018 and December 31, 2017 . Table 11.1 – Fair Value and Notional Amount of Derivative Financial Instruments December 31, 2018 December 31, 2017 Fair Value Notional Amount Fair Value Notional Amount (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 28,211 $ 2,106,500 $ 10,122 $ 1,765,000 TBAs 4,665 520,000 133 295,000 Futures — — 1 7,500 Swaptions — — 42 200,000 Assets - Other Derivatives Loan purchase commitments 2,913 331,161 3,243 547,434 Loan forward sale commitments — — 2,177 343,681 Total Assets $ 35,789 $ 2,957,661 $ 15,718 $ 3,158,615 Liabilities - Cash Flow Hedges Interest rate swaps $ (34,492 ) $ 139,500 $ (43,679 ) $ 139,500 Liabilities - Risk Management Derivatives Interest rate swaps (36,416 ) 1,742,000 (11,888 ) 1,248,000 TBAs (13,215 ) 935,000 (3,808 ) 1,400,000 Liabilities - Other Derivatives Loan purchase commitments (732 ) 137,224 (3,706 ) 697,966 Total Liabilities $ (84,855 ) $ 2,953,724 $ (63,081 ) $ 3,485,466 Total Derivative Financial Instruments, Net $ (49,066 ) $ 5,911,385 $ (47,363 ) $ 6,644,081
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, 2018 , 2017 , and 2016 . Table 11.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Years Ended December 31, (In Thousands) 2018 2017 2016 Net interest expense on cash flows hedges $ (3,228 ) $ (4,602 ) $ (5,317 ) Realized net losses reclassified from other comprehensive income — (45 ) (72 ) Total Interest Expense $ (3,228 ) $ (4,647 ) $ (5,389 )

Other Assets and Liabilities (T

Other Assets and Liabilities (Tables)	12 Months Ended
	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Summary of Other Assets	Other assets at December 31, 2018 and December 31, 2017 are summarized in the following table. Table 12.1 – Components of Other Assets (In Thousands) December 31, 2018 December 31, 2017 Margin receivable $ 100,773 $ 85,044 FHLBC stock 43,393 43,393 Pledged collateral 42,433 42,615 Investment receivable 6,959 1,147 Fixed assets and leasehold improvements (1) 5,106 2,645 REO 3,943 3,354 Other 15,218 16,768 Total Other Assets $ 217,825 $ 194,966 (1) Fixed assets and leasehold improvements had a basis of $10 million and accumulated depreciation of $5 million at December 31, 2018 .
Summary of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities at December 31, 2018 and December 31, 2017 are summarized in the following table. Table 12.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) December 31, 2018 December 31, 2017 Accrued compensation $ 19,769 $ 24,025 Guarantee obligations 16,711 19,487 Payable to minority partner 14,331 — Deferred tax liabilities 9,022 11,764 Residential loan and MSR repurchase reserve 4,189 4,916 Legal reserve 2,000 2,000 Unsettled trades 1,494 13 Margin payable 835 390 Accrued taxes payable 423 — Other 9,945 5,134 Total Accrued Expenses and Other Liabilities $ 78,719 $ 67,729

Short-Term Debt (Tables)

Short-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2018
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, 2018 and December 31, 2017 . Table 13.1 – Short-Term Debt December 31, 2018 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate Maturity Weighted Average Days Until Maturity Facilities Residential loan warehouse (1) 4 $ 860,650 $ 1,425,000 4.10 % 2/2019-12/2019 178 Real estate securities repo (1) 9 988,890 — 3.47 % 01/2019-03/2019 26 Single-family rental loan warehouse (2) 2 22,053 400,000 4.77 % 6/2020-6/2021 560 Residential bridge loan warehouse (2) 2 66,327 80,000 5.20 % 11/2019-04/2021 629 Total Short-Term Debt Facilities 17 1,937,920 Servicer advance financing 1 262,740 350,000 4.32 % 11/2019 333 Convertible notes, net N/A 199,619 — 5.63 % 11/2019 319 Total Short-Term Debt $ 2,400,279 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 (1) 4 $ 1,039,666 $ 1,575,000 3.17 % 1/2018-12/2018 197 Real estate securities repo (1) 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 (1) Borrowings under our facilities are generally charged interest based on a specified margin over the one-month LIBOR interest rate. At December 31, 2018 , all of these borrowings were under uncommitted facilities and were due within 364 days (or less) of the borrowing date. (2) Due to the revolving nature of the borrowings under these facilities, we have classified these facilities as short-term debt at December 31, 2018 . Borrowings under these facilities will be repaid as the underlying loans mature or are sold to third parties or transferred to securitizations.
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, 2018 . Table 13.2 – Short-Term Debt by Collateral Type and Remaining Maturities December 31, 2018 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for sale residential loans $ — $ 458,955 $ 401,695 $ 860,650 Real estate securities 764,052 224,838 — 988,890 Single-family rental loans — — 22,053 22,053 Residential bridge loans — — 66,327 66,327 Total Secured Short-Term Debt 764,052 683,793 490,075 1,937,920 Servicer advance financing — — 262,740 262,740 Convertible notes, net — — 199,619 199,619 Total Short-Term Debt $ 764,052 $ 683,793 $ 952,434 $ 2,400,279

Asset-Backed Securities Issued

Asset-Backed Securities Issued (Tables)	12 Months Ended
	Dec. 31, 2018
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, 2018 and December 31, 2017 , along with other selected information, are summarized in the following table. Table 14.1 – Asset-Backed Securities Issued December 31, 2018 (Dollars in Thousands) Legacy Sequoia Sequoia Choice Freddie Mac SLST Freddie Mac K-Series Total Certificates with principal balance $ 540,456 $ 1,838,758 $ 993,659 $ 1,936,691 $ 5,309,564 Interest-only certificates 1,537 25,662 — 131,600 158,799 Market valuation adjustments (29,753 ) 20,590 89 (49,216 ) (58,290 ) ABS Issued, Net $ 512,240 $ 1,885,010 $ 993,748 $ 2,019,075 $ 5,410,073 Range of weighted average interest rates, by series 1.36% to 3.60% 4.46% to 4.97% 3.51 % 3.39% to 4.08% Stated maturities 2024 - 2036 2047 - 2048 2028 2025 - 2049 Number of series 20 6 1 3 December 31, 2017 (Dollars in Thousands) Legacy Sequoia Sequoia Freddie Mac SLST Freddie Mac K-Series Total Certificates with principal balance $ 691,125 $ 526,657 $ — $ — $ 1,217,782 Interest-only certificates 1,972 7,695 — — 9,667 Market valuation adjustments (70,652 ) 7,788 — — (62,864 ) ABS Issued, Net $ 622,445 $ 542,140 $ — $ — $ 1,164,585 Range of weighted average interest rates, by series 1.46% to 2.78% 4.52% to 4.73% — % — % Stated maturities 2024 - 2036 2047 — — Number of series 20 2 — —
Schedule of Interest Payable On Asset-Backed Securities Issued	(In Thousands) December 31, 2018 December 31, 2017 Legacy Sequoia $ 571 $ 537 Sequoia Choice 7,180 2,031 Freddie Mac SLST 2,907 — Freddie Mac K-Series 6,239 — Total Accrued Interest Payable on ABS Issued $ 16,897 $ 2,568
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, 2018 and December 31, 2017 . Table 14.3 – Collateral for Asset-Backed Securities Issued December 31, 2018 (In Thousands) Legacy Sequoia Sequoia Choice Freddie Mac SLST Freddie Mac K-Series Total Residential loans $ 519,958 $ 2,079,382 $ 1,222,669 $ — $ 3,822,009 Multifamily loans — — — 2,144,598 2,144,598 Restricted cash 146 1,022 — — 1,168 Accrued interest receivable 822 8,988 3,926 6,595 20,331 REO 3,943 — — — 3,943 Total Collateral for ABS Issued $ 524,869 $ 2,089,392 $ 1,226,595 $ 2,151,193 $ 5,992,049 December 31, 2017 (In Thousands) Legacy Sequoia Sequoia Freddie Mac SLST Freddie Mac K-Series Total Residential loans $ 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 Collateral for ABS Issued $ 637,184 $ 622,590 $ — $ — $ 1,259,774

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt	The following table presents maturities of our FHLBC borrowings by year at December 31, 2018 . Table 15.1 – Maturities of FHLBC Borrowings by Year (In Thousands) December 31, 2018 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, 2018
Commitments and Contingencies Disclosure [Abstract]
Future Lease Commitments	The following table presents our future lease commitments at December 31, 2018 . Table 16.1 – Future Lease Commitments by Year (In Thousands) December 31, 2018 2019 $ 2,002 2020 1,966 2021 1,474 2022 and thereafter 10,217 Total Lease Commitments $ 15,659

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2018
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, 2018 and 2017 . Table 17.1 – Changes in Accumulated Other Comprehensive Income by Component Years Ended December 31, 2018 2017 (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 $ 128,201 $ (42,953 ) $ 115,873 $ (44,020 ) Other comprehensive income (loss) (7,298 ) 8,908 22,864 1,022 Amounts reclassified from other (1) (25,561 ) — (10,536 ) 45 Net current-period other comprehensive income (loss) (32,859 ) 8,908 12,328 1,067 Balance at End of Period $ 95,342 $ (34,045 ) $ 128,201 $ (42,953 ) (1) Amount is presented net of tax provision of $2 million for the year ended December 31, 2018 .
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, 2018 and 2017 . Table 17.2 – 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 2018 2017 Net Realized (Gain) Loss on AFS Securities Other than temporary impairment (1) Investment fair value changes, net $ 89 $ 1,012 Gain on sale of AFS securities Realized gains, net (27,178 ) (11,548 ) Gain on sale of AFS securities Provision for income taxes 1,528 — $ (25,561 ) $ (10,536 ) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ — $ 45 $ — $ 45 (1) For the year ended December 31, 2018 , other-than-temporary impairments were $1 million , of which $0.1 million were recognized through our consolidated statements of income and $1 million were recognized in Accumulated other comprehensive income, a component of our consolidated balance sheet. 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.
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, 2018 , 2017 , and 2016 . Table 17.3 – Basic and Diluted Earnings per Common Share Years Ended December 31, (In Thousands, except Share Data) 2018 2017 2016 Basic Earnings per Common Share: Net income attributable to Redwood $ 119,600 $ 140,406 $ 131,252 Less: Dividends and undistributed earnings allocated to participating securities (3,754 ) (3,632 ) (3,742 ) Net income allocated to common shareholders $ 115,846 $ 136,774 $ 127,510 Basic weighted average common shares outstanding 78,724,912 76,792,957 76,747,047 Basic Earnings per Common Share $ 1.47 $ 1.78 $ 1.66 Diluted Earnings per Common Share: Net income attributable to Redwood $ 119,600 $ 140,406 $ 131,252 Less: Dividends and undistributed earnings allocated to participating securities (4,283 ) (3,836 ) (4,035 ) Add back: Interest expense on convertible notes for the period, net of tax 32,653 26,898 23,862 Net income allocated to common shareholders $ 147,970 $ 163,468 $ 151,079 Weighted average common shares outstanding 78,724,912 76,792,957 76,747,047 Net effect of dilutive equity awards 189,120 185,383 28,435 Net effect of assumed convertible notes conversion to common shares 31,113,738 24,996,668 21,133,608 Diluted weighted average common shares outstanding 110,027,770 101,975,008 97,909,090 Diluted Earnings per Common Share $ 1.34 $ 1.60 $ 1.54

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	12 Months Ended
	Dec. 31, 2018
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 $25 million at December 31, 2018 , as shown in the following table. Table 18.1 – Activities of Equity Compensation Costs by Award Type Year Ended December 31, 2018 (In Thousands) Restricted Stock Deferred Stock Units Performance Stock Units Employee Stock Purchase Plan Total Unrecognized compensation cost at beginning of period $ 2,808 $ 13,364 $ 5,298 $ — $ 21,470 Equity grants 2,566 9,050 4,400 136 16,152 Equity grant forfeitures (112 ) — — — (112 ) Equity compensation expense (1,690 ) (7,925 ) (2,637 ) (136 ) (12,388 ) Unrecognized Compensation Cost at End of Period $ 3,572 $ 14,489 $ 7,061 $ — $ 25,122
Restricted Stock Outstanding	The following table summarizes the activities related to restricted stock for the years ended December 31, 2018 , 2017 , and 2016 . Table 18.2 – Restricted Stock Awards Activities Years Ended December 31, 2018 2017 2016 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of period 257,507 $ 15.23 204,515 $ 14.27 187,180 $ 18.22 Granted 173,413 14.73 134,364 16.52 144,056 11.89 Vested (83,968 ) 15.46 (61,928 ) 14.97 (50,107 ) 17.28 Forfeited (7,470 ) 15.05 (19,444 ) 14.78 (76,614 ) 18.01 Outstanding at End of Period 339,482 $ 14.92 257,507 $ 15.23 204,515 $ 14.27
Deferred Stock Units Activity	The following table summarizes the activities related to DSUs for the years ended December 31, 2018 , 2017 , and 2016 . Table 18.3 – Deferred Stock Units Activities Years Ended December 31, 2018 2017 2016 Units Weighted Units Weighted Units Weighted Outstanding at beginning of period 1,878,491 $ 15.92 1,848,862 $ 16.46 2,407,154 $ 16.45 Granted 670,254 15.53 565,921 16.01 565,061 13.33 Distributions (212,025 ) 18.37 (504,417 ) 18.09 (1,060,459 ) 14.64 Forfeitures — — (31,875 ) 14.80 (62,894 ) 18.66 Balance at End of Period 2,336,720 $ 15.58 1,878,491 $ 15.92 1,848,862 $ 16.46
Summary of Activity Related to ESPP	The following table summarizes the activities related to the ESPP for the years ended December 31, 2018 , 2017 , and 2016 . Table 18.4 – Employee Stock Purchase Plan Activities Years Ended December 31, (In Thousands) 2018 2017 2016 Balance at beginning of period $ 4 $ 3 $ 18 Employee purchases 375 305 290 Cost of common stock issued (373 ) (304 ) (305 ) Balance at End of Period $ 6 $ 4 $ 3
Summary of Activity Related to Executive Deferred Compensation Plan	The following table summarizes the cash account activities related to the EDCP for the years ended December 31, 2018 , 2017 , and 2016 . Table 18.5 – EDCP Cash Accounts Activities Years Ended December 31, (In Thousands) 2018 2017 2016 Balance at beginning of period $ 2,171 $ 2,088 $ 2,095 New deferrals 759 750 558 Accrued interest 82 58 53 Withdrawals (528 ) (725 ) (618 ) Balance at End of Period $ 2,484 $ 2,171 $ 2,088

Mortgage Banking Activities (Ta

Mortgage Banking Activities (Tables)	12 Months Ended
	Dec. 31, 2018
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, 2018 , 2017 , and 2016 . Table 19.1 – Mortgage Banking Activities Years Ended December 31, (In Thousands) 2018 2017 2016 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ 21,808 $ 69,373 $ 31,399 Single-family rental loans, at fair value (1) 453 — — Sequoia securities — — 1,455 Risk management derivatives (2) 34,739 (17,529 ) 5,696 Other income (expense), net (3) 2,566 2,064 2,203 Total residential mortgage banking activities, net 59,566 53,908 40,753 Commercial Mortgage Banking Activities, Net — — (2,062 ) Mortgage Banking Activities, Net $ 59,566 $ 53,908 $ 38,691 (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 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 (Tables)	12 Months Ended
	Dec. 31, 2018
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, 2018 , 2017 and 2016 . Table 20.1 – Investment Fair Value Changes Years Ended December 31, (In Thousands) 2018 2017 2016 Investment Fair Value Changes, Net Changes in fair value of: Residential loans held-for-investment, at Redwood $ (29,573 ) $ (5,765 ) $ (23,102 ) Residential bridge loans held-for-investment (29 ) — — Trading securities (8,055 ) 39,526 9,666 Servicer advance investments (701 ) — — Excess MSRs 1,823 — — Net investments in Legacy Sequoia entities (1) (1,016 ) (8,027 ) (4,200 ) Net investments in Sequoia Choice entities (1) 443 (323 ) — Net investment in Freddie Mac SLST entity (1) 1,271 — — Net investments in Freddie Mac K-Series entities (1) 931 — — Risk-sharing investments (434 ) (1,484 ) (1,151 ) Risk management derivatives, net 9,740 (12,842 ) (9,112 ) Valuation adjustments on commercial loans held-for-sale — 300 (307 ) Impairments on AFS securities (89 ) (1,011 ) (368 ) Investment Fair Value Changes, Net $ (25,689 ) $ 10,374 $ (28,574 ) (1) Includes changes in fair value of the 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.

Operating Expenses (Tables)

Operating Expenses (Tables)	12 Months Ended
	Dec. 31, 2018
Other Income and Expenses [Abstract]
Components of Operating Expenses	Components of our operating expenses for the years ended December 31, 2018 , 2017 and 2016 are presented in the following table. Table 21.1 – Components of Operating Expenses Years Ended December 31, (In Thousands) 2018 2017 2016 Fixed compensation expense $ 24,445 $ 22,111 $ 24,332 Variable compensation expense (1) 14,589 20,574 16,581 Equity compensation expense 12,388 10,141 9,093 Total compensation expense 51,422 52,826 50,006 Systems and consulting 7,451 7,073 9,037 Loan acquisition costs (2) 7,697 5,022 5,744 Office costs 4,705 4,248 4,550 Accounting and legal 5,529 2,842 3,658 Corporate costs 1,955 1,856 2,106 Other operating expenses 4,023 3,289 3,284 Operating expenses before restructuring charges 82,782 77,156 78,385 Restructuring charges (3) — — 10,401 Total Operating Expenses $ 82,782 $ 77,156 $ 88,786 (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.

Taxes (Tables)

Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Components of Net Deferred Tax Assets	Components of our net deferred tax assets at December 31, 2018 and December 31, 2017 are presented in the following table. Table 22.1 – Deferred Tax Assets (Liabilities) (In Thousands) December 31, 2018 December 31, 2017 Deferred Tax Assets Net operating loss carryforward – state $ 103,858 $ 108,085 Net capital loss carryforward – federal — 535 Real estate assets 2,400 — Interest rate agreements 2,320 1,380 Allowances and accruals 1,830 2,044 Other 1,586 1,844 Total Deferred Tax Assets 111,994 113,888 Deferred Tax Liabilities Real estate assets — (562 ) Mortgage Servicing Rights (20,068 ) (20,540 ) Tax effect of unrealized gains – OCI — (1,166 ) Total Deferred Tax Liabilities (20,068 ) (22,268 ) Valuation allowance (100,948 ) (103,384 ) Total Deferred Tax Asset (Liability), net of Valuation Allowance $ (9,022 ) $ (11,764 )
Provision for Income Taxes	The following table summarizes the provision for income taxes for the years ended December 31, 2018 , 2017 , and 2016 . Table 22.2 – Provision for Income Taxes Years Ended December 31, (In Thousands) 2018 2017 2016 Current Provision for Income Taxes Federal $ 11,387 $ 512 $ 1,477 State 820 361 331 Total Current Provision for Income Taxes 12,207 873 1,808 Deferred Provision for Income Taxes Federal (1,419 ) 10,991 1,910 State 300 (112 ) (10 ) Total Deferred (Benefit) Provision for Income Taxes (1,119 ) 10,879 1,900 Total Provision for Income Taxes $ 11,088 $ 11,752 $ 3,708
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, 2018 , 2017 , and 2016 . Table 22.3 – Reconciliation of Statutory Tax Rate to Effective Tax Rate December 31, 2018 December 31, 2017 December 31, 2016 Federal statutory rate 21.0 % 34.0 % 34.0 % State statutory rate, net of Federal tax effect 8.6 % 7.2 % 7.2 % Differences in taxable (loss) income from GAAP income (1.7 )% (3.9 )% (1.0 )% Change in valuation allowance 1.9 % (1.0 )% (11.2 )% Dividends paid deduction (21.3 )% (23.4 )% (26.3 )% Federal statutory rate change — % (5.2 )% — % Effective Tax Rate 8.5 % 7.7 % 2.7 %

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Financial Information by Segment	The following tables present financial information by segment for the years ended December 31, 2018 , 2017 , and 2016 . Table 23.1 – Business Segment Financial Information Year Ended December 31, 2018 (In Thousands) Investment Portfolio Mortgage Banking Corporate/ Other Total Interest income $ 304,636 $ 53,054 $ 21,027 $ 378,717 Interest expense (149,139 ) (28,934 ) (60,966 ) (239,039 ) Net interest income (loss) 155,497 24,120 (39,939 ) 139,678 Non-interest income Mortgage banking activities, net — 59,566 — 59,566 Investment fair value changes, net (24,693 ) — (996 ) (25,689 ) Other income, net 12,433 — 441 12,874 Realized gains, net 27,041 — — 27,041 Total non-interest income, net 14,781 59,566 (555 ) 73,792 Direct operating expenses (10,357 ) (28,172 ) (44,253 ) (82,782 ) Provision for income taxes (3,741 ) (7,347 ) — (11,088 ) Segment Contribution $ 156,180 $ 48,167 $ (84,747 ) Net Income $ 119,600 Non-cash amortization income (expense), net $ 16,849 $ (181 ) $ (4,289 ) $ 12,379 Year Ended December 31, 2017 (In Thousands) Investment Portfolio Mortgage Banking Corporate/ 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 Investment fair value changes, net 18,414 — (8,040 ) 10,374 Other income, net 12,436 — — 12,436 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 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 Investment fair value changes, net (24,367 ) — (4,207 ) (28,574 ) Other income, net 20,691 — — 20,691 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 (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.
Schedule Of Corporate And Other	The following table presents the components of Corporate/Other for the years ended December 31, 2018 , 2017 , and 2016 . Table 23.2 – Components of Corporate/Other Years Ended December 31, 2018 2017 2016 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 20,036 $ 991 $ 21,027 $ 19,407 $ 581 $ 19,988 $ 19,537 $ 957 $ 20,494 Interest expense (16,519 ) (44,447 ) (60,966 ) (14,789 ) (39,968 ) (54,757 ) (13,103 ) (38,237 ) (51,340 ) Net interest income (loss) 3,517 (43,456 ) (39,939 ) 4,618 (39,387 ) (34,769 ) 6,434 (37,280 ) (30,846 ) Non-interest income Mortgage banking activities, net — — — — — — — (2,062 ) (2,062 ) Investment fair value changes, net (1,016 ) 20 (996 ) (8,027 ) (13 ) (8,040 ) (4,200 ) (7 ) (4,207 ) Other income, net — 441 441 — — — — — — Realized gains, net — — — — (752 ) (752 ) — 292 292 Total non-interest (loss) income, net (1,016 ) 461 (555 ) (8,027 ) (765 ) (8,792 ) (4,200 ) (1,777 ) (5,977 ) Direct operating expenses — (44,253 ) (44,253 ) — (46,015 ) (46,015 ) — (55,113 ) (55,113 ) Total $ 2,501 $ (87,248 ) $ (84,747 ) $ (3,409 ) $ (86,167 ) $ (89,576 ) $ 2,234 $ (94,170 ) $ (91,936 ) (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, 2018 and December 31, 2017. Table 23.3 – Supplemental Segment Information (In Thousands) Investment Portfolio Mortgage Banking Corporate/ Other Total December 31, 2018 Residential loans $ 5,685,983 $ 1,048,801 $ 519,958 $ 7,254,742 Business purpose residential loans 112,798 28,460 — 141,258 Multifamily loans 2,144,598 — — 2,144,598 Real estate securities 1,452,494 — — 1,452,494 Other investments 427,764 — 10,754 438,518 Total assets 10,093,993 1,103,090 740,323 11,937,406 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 Other investments 63,598 — — 63,598 Total assets 4,743,873 1,453,069 842,880 7,039,822

Quarterly Financial Data - Un_2

Quarterly Financial Data - Unaudited (Tables)	12 Months Ended
	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data	Three Months Ended (In Thousands, except Share Data) December 31, September 30, June 30, March 31, 2018 Operating results: Interest income $ 119,725 $ 99,397 $ 82,976 $ 76,619 Interest expense (84,961 ) (64,351 ) (48,213 ) (41,514 ) Net interest income 34,764 35,046 34,763 35,105 Non-interest income (17,679 ) 32,284 19,521 39,666 Operating expenses (19,253 ) (21,490 ) (19,009 ) (23,030 ) Net (loss) income (913 ) 40,921 32,747 46,845 Per share data: Net (loss) income – basic $ (0.02 ) $ 0.49 $ 0.42 $ 0.60 Net (loss) income – diluted (0.02 ) 0.42 0.38 0.50 Regular dividends declared per common share 0.30 0.30 0.30 0.28 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

Organization (Details)

Organization (Details)	12 Months Ended
	Dec. 31, 2018Segment
Accounting Policies [Abstract]
Number of operating segments	2

Basis of Presentation (Details)

Basis of Presentation (Details)	3 Months Ended
	Dec. 31, 2018partnership
Accounting Policies [Abstract]
Number of partnerships consolidated	2
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, ownership interest rate	80.00%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	May 31, 2014	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2014	Dec. 31, 2013	May 01, 2018
Significant Accounting Policies [Line Items]
Risk-sharing arrangement term						10 years
SPE, assets		$ 47,000	$ 47,000	$ 48,000
SPE, liabilities		17,000	$ 17,000	19,000
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			$ 600	$ 500	$ 600
Future lease commitments with expiration date		$ 15,659	$ 15,659
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
5 Arches, LLC
Significant Accounting Policies [Line Items]
Minority interest, percentage		20.00%	20.00%					20.00%
Variable Interest Entity, Primary Beneficiary
Significant Accounting Policies [Line Items]
VIE, ownership interest rate		80.00%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Offsetting of Financial Assets, Liabilities, and Collateral (Details) - USD ($) $ in Thousands		Dec. 31, 2018	Dec. 31, 2017
Offsetting Asset and Liabilities [Line Items]
Derivative assets	[1]	$ 35,789	$ 15,718
Gross Amounts of Recognized Liabilities		(1,933,663)	(1,747,787)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet - Derivatives	[1]	(84,855)	(63,081)
Net Amounts of Liabilities Presented in Consolidated Balance Sheet		(1,933,663)	(1,747,787)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		1,881,142	1,694,741
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged		48,317	50,747
Net Amount		(4,204)	(2,299)
Interest Rate Agreement, TBAs, And Futures
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Assets		32,876	10,298
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Derivative assets		32,876	10,298
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(31,602)	(6,329)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received		(835)	(42)
Net Amount		439	3,927
Interest rate agreements
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Assets		28,211	10,164
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Derivative assets		28,211	10,164
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(28,211)	(6,196)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received		0	(42)
Net Amount		0	3,926
Gross Amounts of Recognized Liabilities - Derivatives		(70,908)	(55,567)
Gross Amounts Offset in Consolidated Balance Sheet - Derivatives		0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet - Derivatives		(70,908)	(55,567)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments - Derivatives		28,211	6,196
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged - Derivatives		42,697	49,371
Net Amount - Derivatives		0	0
TBAs
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Assets		4,665	133
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Derivative assets		4,665	133
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(3,391)	(133)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received		(835)	0
Net Amount		439	0
Gross Amounts of Recognized Liabilities - Derivatives		(13,215)	(3,808)
Gross Amounts Offset in Consolidated Balance Sheet - Derivatives		0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet - Derivatives		(13,215)	(3,808)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments - Derivatives		3,391	133
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged - Derivatives		5,620	1,376
Net Amount - Derivatives		(4,204)	(2,299)
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
Loan warehouse debt
Offsetting Asset and Liabilities [Line Items]
Gross Amounts of Recognized Liabilities - Other		(860,650)	(1,039,666)
Gross Amounts Offset in Consolidated Balance Sheet - Other		0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet - Other		(860,650)	(1,039,666)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments - Other		860,650	1,039,666
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		(988,890)	(648,746)
Gross Amounts Offset in Consolidated Balance Sheet - Other		0	0
Net Amounts of Liabilities Presented in Consolidated Balance Sheet - Other		(988,890)	(648,746)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments - Other		988,890	648,746
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, 2018 and December 31, 2017, assets of consolidated VIEs totaled $6,331,191 and $1,259,774, respectively. At December 31, 2018 and December 31, 2017, liabilities of consolidated VIEs totaled $5,709,807 and $1,167,157, respectively. See Note 4 for further discussion.

Principles of Consolidation - A

Principles of Consolidation - Additional Information (Details) $ in Millions	3 Months Ended	12 Months Ended		72 Months Ended
	Dec. 31, 2018USD ($)partnership	Dec. 31, 2018USD ($)Entity	Dec. 31, 2017Entity	Dec. 31, 2018USD ($)Entity
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership	2
Servicing asset, fair value	$ 300	$ 300		$ 300
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, ownership interest rate	80.00%
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Number of securitization entities to which asset transferred | Entity		8	7	44
Legacy Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, carrying amount, assets and liabilities, net	$ 12	$ 12		$ 12
Sequoia Choice | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, carrying amount, assets and liabilities, net	196	196		196
Freddie Mac SLST | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, carrying amount, assets and liabilities, net	230	230		230
Servicing Investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Servicing asset, fair value	57	57		57
Freddie Mac K-Series | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, carrying amount, assets and liabilities, net	$ 126	$ 126		$ 126

Principles of Consolidation -_2

Principles of Consolidation - Assets and Liabilities of Consolidated Variable Interest Entity's (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)Investment	Dec. 31, 2017USD ($)Investment
Variable Interest Entity [Line Items]
Assets	$ 6,331,191	$ 1,259,774
Liabilities	5,709,807	1,167,157
Multifamily loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	2,144,598
Legacy Sequoia
Variable Interest Entity [Line Items]
Assets	524,869	637,184
Liabilities	$ 512,811	$ 622,982
Number of VIEs | Investment	20	20
Legacy Sequoia | Residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	$ 519,958	$ 632,817
Legacy Sequoia | Multifamily loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	0
Legacy Sequoia | Other investments
Variable Interest Entity [Line Items]
Assets	0
Legacy Sequoia | Restricted cash
Variable Interest Entity [Line Items]
Assets	146	147
Legacy Sequoia | Accrued interest receivable
Variable Interest Entity [Line Items]
Assets	822	867
Legacy Sequoia | REO
Variable Interest Entity [Line Items]
Assets	3,943	3,353
Legacy Sequoia | Short-term debt
Variable Interest Entity [Line Items]
Liabilities	0
Legacy Sequoia | Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	571	537
Legacy Sequoia | Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	0	0
Legacy Sequoia | Asset-backed securities issued
Variable Interest Entity [Line Items]
Liabilities	512,240	622,445
Sequoia Choice
Variable Interest Entity [Line Items]
Assets	2,089,392	622,590
Liabilities	$ 1,893,212	$ 544,175
Number of VIEs | Investment	6	2
Sequoia Choice | Residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	$ 2,079,382	$ 620,062
Sequoia Choice | Multifamily loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	0
Sequoia Choice | Other investments
Variable Interest Entity [Line Items]
Assets	0
Sequoia Choice | Restricted cash
Variable Interest Entity [Line Items]
Assets	1,022	4
Sequoia Choice | Accrued interest receivable
Variable Interest Entity [Line Items]
Assets	8,988	2,524
Sequoia Choice | REO
Variable Interest Entity [Line Items]
Assets	0	0
Sequoia Choice | Short-term debt
Variable Interest Entity [Line Items]
Liabilities	0
Sequoia Choice | Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	7,180	2,031
Sequoia Choice | Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	1,022	4
Sequoia Choice | Asset-backed securities issued
Variable Interest Entity [Line Items]
Liabilities	1,885,010	542,140
Freddie Mac SLST
Variable Interest Entity [Line Items]
Assets	1,226,595	0
Liabilities	$ 996,655	$ 0
Number of VIEs | Investment	1	0
Freddie Mac SLST | Residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	$ 1,222,669	$ 0
Freddie Mac SLST | Multifamily loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	0
Freddie Mac SLST | Other investments
Variable Interest Entity [Line Items]
Assets	0
Freddie Mac SLST | Restricted cash
Variable Interest Entity [Line Items]
Assets	0	0
Freddie Mac SLST | Accrued interest receivable
Variable Interest Entity [Line Items]
Assets	3,926	0
Freddie Mac SLST | REO
Variable Interest Entity [Line Items]
Assets	0	0
Freddie Mac SLST | Short-term debt
Variable Interest Entity [Line Items]
Liabilities	0
Freddie Mac SLST | Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	2,907	0
Freddie Mac SLST | Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	0	0
Freddie Mac SLST | Asset-backed securities issued
Variable Interest Entity [Line Items]
Liabilities	993,748	0
Freddie Mac K-Series
Variable Interest Entity [Line Items]
Assets	2,151,193	0
Liabilities	$ 2,025,314	$ 0
Number of VIEs | Investment	3	0
Freddie Mac K-Series | Residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	$ 0	$ 0
Freddie Mac K-Series | Multifamily loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	2,144,598
Freddie Mac K-Series | Other investments
Variable Interest Entity [Line Items]
Assets	0
Freddie Mac K-Series | Restricted cash
Variable Interest Entity [Line Items]
Assets	0	0
Freddie Mac K-Series | Accrued interest receivable
Variable Interest Entity [Line Items]
Assets	6,595	0
Freddie Mac K-Series | REO
Variable Interest Entity [Line Items]
Assets	0	0
Freddie Mac K-Series | Short-term debt
Variable Interest Entity [Line Items]
Liabilities	0
Freddie Mac K-Series | Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	6,239	0
Freddie Mac K-Series | Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	0	0
Freddie Mac K-Series | Asset-backed securities issued
Variable Interest Entity [Line Items]
Liabilities	2,019,075	0
Servicing Investment
Variable Interest Entity [Line Items]
Assets	339,142	0
Liabilities	$ 281,815	$ 0
Number of VIEs | Investment	3	0
Servicing Investment | Residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	$ 0	$ 0
Servicing Investment | Multifamily loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	0
Servicing Investment | Other investments
Variable Interest Entity [Line Items]
Assets	312,688
Servicing Investment | Restricted cash
Variable Interest Entity [Line Items]
Assets	25,363	0
Servicing Investment | Accrued interest receivable
Variable Interest Entity [Line Items]
Assets	1,091	0
Servicing Investment | REO
Variable Interest Entity [Line Items]
Assets	0	0
Servicing Investment | Short-term debt
Variable Interest Entity [Line Items]
Liabilities	262,740
Servicing Investment | Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	483	0
Servicing Investment | Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	18,592	0
Servicing Investment | Asset-backed securities issued
Variable Interest Entity [Line Items]
Liabilities	0	0
Total Consolidated VIEs
Variable Interest Entity [Line Items]
Assets	6,331,191	1,259,774
Liabilities	$ 5,709,807	$ 1,167,157
Number of VIEs | Investment	33	22
Total Consolidated VIEs | Residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	$ 3,822,009	$ 1,252,879
Total Consolidated VIEs | Other investments
Variable Interest Entity [Line Items]
Assets	312,688
Total Consolidated VIEs | Restricted cash
Variable Interest Entity [Line Items]
Assets	26,531	151
Total Consolidated VIEs | Accrued interest receivable
Variable Interest Entity [Line Items]
Assets	21,422	3,391
Total Consolidated VIEs | REO
Variable Interest Entity [Line Items]
Assets	3,943	3,353
Total Consolidated VIEs | Short-term debt
Variable Interest Entity [Line Items]
Liabilities	262,740
Total Consolidated VIEs | Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	17,380	2,568
Total Consolidated VIEs | Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	19,614	4
Total Consolidated VIEs | Asset-backed securities issued
Variable Interest Entity [Line Items]
Liabilities	$ 5,410,073	$ 1,164,585

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, 2018	Dec. 31, 2017	Dec. 31, 2016
Variable Interest Entity [Line Items]
MSRs recognized	$ 328	$ 7,387	$ 10,060
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Principal balance of loans transferred	3,188,358	2,573,789
MSRs recognized	0	7,123
Variable Interest Entity, Not Primary Beneficiary | Trading securities
Variable Interest Entity [Line Items]
Securities retained, at fair value	52,859	66,321
Variable Interest Entity, Not Primary Beneficiary | AFS Securities
Variable Interest Entity [Line Items]
Securities retained, at fair value	$ 7,739	$ 13,341

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, 2018	Dec. 31, 2017
Variable Interest Entity [Line Items]
Proceeds from new transfers	$ 3,175,900	$ 2,563,499
MSR fees received	13,417	14,302
Funding of compensating interest, net	(122)	(151)
Cash flows received on retained securities	$ 28,614	$ 27,156

Principles of Consolidation -_3

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, 2018	Dec. 31, 2017
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%
Discount rates		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	9.00%	10.00%
Discount rates	14.00%	14.00%
Credit loss assumptions	0.20%	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%	10.00%
Discount rates	5.00%	5.00%
Credit loss assumptions	0.20%	0.25%

Principles of Consolidation -_4

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, 2018	Dec. 31, 2017
On-balance sheet assets, at fair value:
Maximum loss exposure	$ 349,997	$ 381,661
Principal balance of loans outstanding	10,580,216	8,364,148
Principal balance of loans 30 days delinquent	21,805	27,926
Interest-only, senior and subordinate securities, classified as trading
On-balance sheet assets, at fair value:
Securities	129,111	101,426
Subordinate securities, classified as AFS
On-balance sheet assets, at fair value:
Securities	162,314	219,255
Mortgage servicing rights
On-balance sheet assets, at fair value:
Securities	$ 58,572	$ 60,980

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, 2018	Dec. 31, 2017
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	$ 58,572	$ 60,980
Expected life (in years)	8 years	8 years
Prepayment speed assumption (annual CPR)	7.00%	9.00%
Decrease in fair value from:
10% adverse change	$ 1,668	$ 2,022
25% adverse change	$ 4,027	$ 4,839
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	$ 2,323	$ 2,386
200 basis point increase	$ 4,493	$ 4,597
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	$ 61,178	$ 33,773
Expected life (in years)	7 years	6 years
Prepayment speed assumption (annual CPR)	10.00%	10.00%
Decrease in fair value from:
10% adverse change	$ 2,151	$ 1,371
25% adverse change	$ 5,127	$ 3,289
Impact of adverse change in prepayment speed	25.00%	25.00%
Discount rate assumption	12.00%	11.00%
Decrease in fair value from:
100 basis point increase	$ 2,190	$ 1,158
200 basis point increase	$ 4,226	$ 2,265
Impact on discount rate of basis point increase	1.00%	1.00%
Credit loss assumption	0.20%	0.25%
Decrease in fair value from:
10% higher losses	$ 0	$ 0
25% higher losses	$ 0	$ 0
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	$ 230,247	$ 286,908
Expected life (in years)	15 years	13 years
Prepayment speed assumption (annual CPR)	9.00%	11.00%
Decrease in fair value from:
10% adverse change	$ 201	$ 611
25% adverse change	$ 1,372	$ 1,506
Impact of adverse change in prepayment speed	25.00%	25.00%
Discount rate assumption	6.00%	5.00%
Decrease in fair value from:
100 basis point increase	$ 21,982	$ 25,827
200 basis point increase	$ 40,641	$ 47,885
Impact on discount rate of basis point increase	1.00%	1.00%
Credit loss assumption	0.20%	0.25%
Decrease in fair value from:
10% higher losses	$ 1,387	$ 1,551
25% higher losses	$ 3,471	$ 3,873
Impact of adverse change in expected credit losses (as a percent)	25.00%	25.00%

Principles of Consolidation -_5

Principles of Consolidation - Summary of Redwood's Interest in Third-Party Variable Interest Entity's (Details) - Real estate securities $ in Thousands	Dec. 31, 2018USD ($)
Variable Interest Entity [Line Items]
Assets	$ 1,176,161
Residential
Variable Interest Entity [Line Items]
Assets	1,161,069
Senior IO Securities
Variable Interest Entity [Line Items]
Assets	185,107
Mezzanine
Variable Interest Entity [Line Items]
Assets	547,249
Subordinate Securities
Variable Interest Entity [Line Items]
Assets	428,713
Excess MSRs
Variable Interest Entity [Line Items]
Assets	$ 15,092

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values of Assets and Liabilities (Details) - USD ($) $ in Thousands		Dec. 31, 2018	Dec. 31, 2017
Assets
Trading securities		$ 1,118,612	$ 968,844
Available-for-sale securities		333,882	507,666
MSR Fair Value		300,000
Derivative assets	[1]	35,789	15,718
Pledged collateral		42,433	42,615
Liabilities
Derivative liabilities	[1]	84,855	63,081
Residential Loans
Assets
MSR Fair Value		300,468	0
Carrying Value
Assets
Trading securities		1,118,612	968,844
Available-for-sale securities		333,882	507,666
Participation in loan warehouse facility		39,703	0
Cash and cash equivalents		175,764	144,663
Restricted cash		29,313	2,144
Accrued interest receivable		47,105	27,013
Derivative assets		35,789	15,718
Margin receivable		100,773	85,044
FHLBC stock		43,393	43,393
Guarantee asset		2,618	2,869
Pledged collateral		42,433	42,615
Liabilities
Accrued interest payable		42,528	18,435
Margin payable		835	390
Guarantee obligation		16,711	19,487
Derivative liabilities		84,855	63,081
ABS issued at fair value		5,410,073	1,164,585
FHLBC long-term borrowings		1,999,999	1,999,999
Convertible notes, net		633,196	686,759
Trust preferred securities and subordinated notes, net		138,582	138,535
Carrying Value | Servicer advance investments
Assets
MSR Fair Value		300,468	0
Carrying Value | MSRs
Assets
MSR Fair Value		60,281	63,598
Carrying Value | Excess MSRs
Assets
Other assets		27,312	0
Carrying Value | REO
Assets
Other assets		3,943	3,354
Carrying Value | Credit facilities
Liabilities
Short-term debt facilities		1,937,920	1,688,412
Carrying Value | Servicer advance financing
Liabilities
Short-term debt facilities		262,740	0
Carrying Value | Residential Loans | Residential Loans
Assets
Loans, held-for-sale		1,048,690	1,427,052
Carrying Value | Residential Loans | Residential loans, at lower of cost or fair value
Assets
Loans, held-for-sale		111	893
Carrying Value | Residential Loans | Residential Loans Held For Investment at Fair Value
Assets
Loans, held-for-investment		6,205,941	3,687,265
Carrying Value | Residential Loans | Business purpose residential loans
Assets
Loans, held-for-investment		141,258	0
Carrying Value | Residential Loans | Multifamily loans
Assets
Loans, held-for-investment		2,144,598	0
Fair Value
Assets
Trading securities		1,118,612	968,844
Available-for-sale securities		333,882	507,666
Participation in loan warehouse facility		39,703	0
Cash and cash equivalents		175,764	144,663
Restricted cash		29,313	2,144
Accrued interest receivable		47,105	27,013
Derivative assets		35,789	15,718
Margin receivable		100,773	85,044
FHLBC stock		43,393	43,393
Guarantee asset		2,618	2,869
Pledged collateral		42,433	42,615
Liabilities
Accrued interest payable		42,528	18,435
Margin payable		835	390
Guarantee obligation		16,774	18,878
Derivative liabilities		84,855	63,081
ABS issued at fair value		5,410,073	1,164,585
FHLBC long-term borrowings		1,999,999	1,999,999
Convertible notes, net		618,271	692,369
Trust preferred securities and subordinated notes, net		102,533	103,230
Fair Value | Servicer advance investments
Assets
MSR Fair Value		300,468	0
Fair Value | MSRs
Assets
MSR Fair Value		60,281	63,598
Fair Value | Excess MSRs
Assets
Other assets		27,312	0
Fair Value | REO
Assets
Other assets		4,396	3,806
Fair Value | Credit facilities
Liabilities
Short-term debt facilities		1,937,920	1,688,412
Fair Value | Servicer advance financing
Liabilities
Short-term debt facilities		262,740	0
Fair Value | Residential Loans | Residential Loans
Assets
Loans, held-for-sale		1,048,690	1,427,052
Fair Value | Residential Loans | Residential loans, at lower of cost or fair value
Assets
Loans, held-for-sale		131	993
Fair Value | Residential Loans | Residential Loans Held For Investment at Fair Value
Assets
Loans, held-for-investment		6,205,941	3,687,265
Fair Value | Residential Loans | Business purpose residential loans
Assets
Loans, held-for-investment		141,258	0
Fair Value | Residential Loans | Multifamily loans
Assets
Loans, held-for-investment		$ 2,144,598	$ 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, 2018 and December 31, 2017, assets of consolidated VIEs totaled $6,331,191 and $1,259,774, respectively. At December 31, 2018 and December 31, 2017, liabilities of consolidated VIEs totaled $5,709,807 and $1,167,157, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Real estate securities | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Dealer marks of securities	85.00%
Percentage of carrying value for which dealer quotes were received on securities	93.00%
Percentage difference of internal valuation than dealer marks	1.00%
Residential Senior Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 109	$ 47
Residential Subordinate Securities | Subordinate Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	545	594
Residential loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	8,380	$ 5,640
Business purpose residential loans | Subordinate Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	168
Multifamily loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	2,130
Servicer advance investments
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	396
Excess MSRs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 25
MSRs | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage difference of internal valuation than dealer marks	2.00%

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands		Dec. 31, 2018	Dec. 31, 2017
Assets
Trading securities		$ 1,118,612	$ 968,844
Available-for-sale securities		333,882	507,666
MSR Fair Value		300,000
Derivative assets	[1]	35,789	15,718
Pledged collateral		42,433	42,615
Liabilities
Derivative liabilities	[1]	84,855	63,081
Fair Value, Measurements, Recurring
Assets
Business purpose residential loans		141,258
Multifamily loans		2,144,598
Trading securities		1,118,612	968,844
Available-for-sale securities		333,882	507,666
Servicer advance investments		300,468
MSR Fair Value		60,281	63,598
Excess MSRs		27,312
Derivative assets		35,789	15,718
Pledged collateral		42,433	42,615
FHLBC stock		43,393	43,393
Guarantee asset		2,618	2,869
Liabilities
Derivative liabilities		84,855	63,081
ABS issued		5,410,073	1,164,585
Fair Value, Measurements, Recurring | Residential Loans
Assets
Residential loans		7,254,631	5,114,317
Fair Value, Measurements, Recurring | Level 1
Assets
Business purpose residential loans		0
Multifamily loans		0
Trading securities		0	0
Available-for-sale securities		0	0
Servicer advance investments		0
MSR Fair Value		0	0
Excess MSRs		0
Derivative assets		4,665	134
Pledged collateral		42,433	42,615
FHLBC stock		0	0
Guarantee asset		0	0
Liabilities
Derivative liabilities		13,215	3,808
ABS issued		0	0
Fair Value, Measurements, Recurring | Level 1 | Residential Loans
Assets
Residential loans		0	0
Fair Value, Measurements, Recurring | Level 2
Assets
Business purpose residential loans		0
Multifamily loans		0
Trading securities		0	0
Available-for-sale securities		0	0
Servicer advance investments		0
MSR Fair Value		0	0
Excess MSRs		0
Derivative assets		28,211	10,164
Pledged collateral		0	0
FHLBC stock		43,393	43,393
Guarantee asset		0	0
Liabilities
Derivative liabilities		70,908	55,567
ABS issued		0	0
Fair Value, Measurements, Recurring | Level 2 | Residential Loans
Assets
Residential loans		0	0
Fair Value, Measurements, Recurring | Level 3
Assets
Business purpose residential loans		141,258
Multifamily loans		2,144,598
Trading securities		1,118,612	968,844
Available-for-sale securities		333,882	507,666
Servicer advance investments		300,468
MSR Fair Value		60,281	63,598
Excess MSRs		27,312
Derivative assets		2,913	5,420
Pledged collateral		0	0
FHLBC stock		0	0
Guarantee asset		2,618	2,869
Liabilities
Derivative liabilities		732	3,706
ABS issued		5,410,073	1,164,585
Fair Value, Measurements, Recurring | Level 3 | Residential Loans
Assets
Residential loans		$ 7,254,631	$ 5,114,317
[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, 2018 and December 31, 2017, assets of consolidated VIEs totaled $6,331,191 and $1,259,774, respectively. At December 31, 2018 and December 31, 2017, liabilities of consolidated VIEs totaled $5,709,807 and $1,167,157, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr_6

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, 2018	Dec. 31, 2017
ABS issued
Liabilities
Beginning balance	$ 1,164,585	$ 773,462
Acquisitions	4,613,168	567,099
Sales		0
Principal paydowns	(459,173)	(205,163)
Gains (losses) in net income, net	91,493	29,187
Unrealized losses in OCI, net		0
Other settlements, net	0	0
Ending Balance	5,410,073	1,164,585
Residential Loans
Assets
Beginning balance	5,114,317	3,886,845
Acquisitions	8,338,724	5,741,427
Sales	(5,425,168)	(3,982,683)
Principal paydowns	(814,122)	(573,168)
Gains (losses) in net income, net	44,627	46,119
Unrealized losses in OCI, net	0	0
Other settlements, net	(3,747)	(4,223)
Ending Balance	7,254,631	5,114,317
Business purpose residential loans
Assets
Beginning balance	0
Acquisitions	167,777
Sales	0
Principal paydowns	(27,382)
Gains (losses) in net income, net	863
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending Balance	141,258	0
Multifamily loans
Assets
Beginning balance	0
Acquisitions	2,099,916
Sales	0
Principal paydowns	(1,873)
Gains (losses) in net income, net	46,555
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending Balance	2,144,598	0
Trading securities
Assets
Beginning balance	968,844	445,687
Acquisitions	653,739	640,760
Sales	(438,304)	(137,886)
Principal paydowns	(40,050)	(19,224)
Gains (losses) in net income, net	(8,436)	39,507
Unrealized losses in OCI, net	0	0
Other settlements, net	(17,181)	0
Ending Balance	1,118,612	968,844
AFS Securities
Assets
Beginning balance	507,666	572,752
Acquisitions	7,739	39,700
Sales	(143,644)	(90,440)
Principal paydowns	(44,446)	(58,554)
Gains (losses) in net income, net	41,051	31,892
Unrealized losses in OCI, net	(34,484)	12,316
Other settlements, net	0	0
Ending Balance	333,882	507,666
Servicer advance investments
Assets
Beginning balance	0
Acquisitions	395,813
Sales	0
Principal paydowns	(94,644)
Gains (losses) in net income, net	(701)
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending Balance	300,468	0
MSRs
Assets
Beginning balance	63,598	118,526
Acquisitions	328	8,026
Sales	(1,077)	(52,788)
Principal paydowns	0	0
Gains (losses) in net income, net	(2,568)	(10,166)
Unrealized losses in OCI, net	0	0
Other settlements, net	0	0
Ending Balance	60,281	63,598
Excess MSRs
Assets
Beginning balance	0
Acquisitions	25,489
Sales	0
Principal paydowns	0
Gains (losses) in net income, net	1,823
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending Balance	27,312	0
Guarantee Asset
Assets
Beginning balance	2,869	4,092
Acquisitions	0	0
Sales	0	0
Principal paydowns	0	0
Gains (losses) in net income, net	(251)	(1,223)
Unrealized losses in OCI, net	0	0
Other settlements, net	0	0
Ending Balance	2,618	2,869
Derivatives
Assets
Beginning balance	1,714	(486)
Acquisitions	0	0
Sales		0
Principal paydowns	0	0
Gains (losses) in net income, net	(1,214)	37,220
Unrealized losses in OCI, net		0
Other settlements, net	1,681	(35,020)
Ending Balance	$ 2,181	$ 1,714

Fair Value of Financial Instr_7

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, 2018	Dec. 31, 2017	Dec. 31, 2016
Loan purchase commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 liability	$ (732)	$ (3,706)	$ (486)
ABS issued
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 liability	(71,468)	(29,187)	8,275
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	(17,757)	523	(17,370)
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	24,799	17,727	(14,391)
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	21,295	0	0
Business purpose residential loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	445	0	0
Multifamily loans | Freddie Mac K-Series
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	46,555	0	0
Trading securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(12,256)	28,612	7,184
AFS Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(89)	(1,011)	(368)
Servicer advance investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(702)	0	0
MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	1,942	1,277	42,964
Excess MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	1,824	0	0
Loan purchase commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	2,913	3,243	0
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	0	2,177	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	$ (251)	$ (1,223)	$ (1,605)

Fair Value of Financial Instr_8

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, 2018	Dec. 31, 2017
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
Gain (loss) on assets measured at fair value on a non-recurring basis		22
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
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
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
REO
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Other assets	$ 2,225	2,034
Gain (loss) on assets measured at fair value on a non-recurring basis	(131)	(393)
REO | Level 1
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Other assets	0	0
REO | Level 2
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Other assets	0	0
REO | Level 3
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Other assets	$ 2,225	$ 2,034

Fair Value of Financial Instr_9

Fair Value of Financial Instruments - Market Valuation Adjustments, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Market Valuation Gains (Losses), Net	$ 24,069	$ 51,484	$ (12,917)
Mortgage Banking Activities, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	57,000	51,844	36,445
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	23,144	31,493	5,786
Mortgage Banking Activities, Net | Single-family rental loans held-for-sale, at fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	453	0	0
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	(1,336)	37,880	25,613
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	0	433
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	0	1,455
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	34,739	(17,529)	3,158
Investment Fair Value Changes, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(25,689)	10,374	(28,574)
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	9,740	(12,842)	(9,112)
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	(29,573)	(5,765)	(23,102)
Investment Fair Value Changes, Net | Residential bridge loans held-for-investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(29)	0	0
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	(8,055)	39,526	9,666
Investment Fair Value Changes, Net | Commercial loans held-for-sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	0	300	(307)
Investment Fair Value Changes, Net | Servicer advance investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(701)	0	0
Investment Fair Value Changes, Net | Excess MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	1,823	0	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	(1,016)	(8,027)	(4,200)
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	443	(323)	0
Investment Fair Value Changes, Net | Freddie Mac SLST
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	1,271	0	0
Investment Fair Value Changes, Net | Freddie Mac K-Series
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	931	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	(434)	(1,484)	(1,151)
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	(89)	(1,011)	(368)
Other Income, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	(7,242)	(10,734)	(20,788)
Other Income, Net | Risk management derivatives, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	(4,734)	(568)	15,584
Other Income, Net | MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	$ (2,508)	$ (10,166)	$ (36,372)

Fair Value of Financial Inst_10

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) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)$ / loan
ABS Issued Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, fair value | $	$ 2,397,250
Freddie Mac SLST
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, fair value | $	993,748
Freddie Mac K-Series
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, fair value | $	$ 2,019,075
Prepayment rate (annual CPR) | ABS Issued Securities | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.08
Prepayment rate (annual CPR) | ABS Issued Securities | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.50
Prepayment rate (annual CPR) | ABS Issued Securities | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.18
Prepayment rate (annual CPR) | Freddie Mac SLST | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.06
Prepayment rate (annual CPR) | Freddie Mac SLST | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.06
Prepayment rate (annual CPR) | Freddie Mac SLST | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.06
Prepayment rate (annual CPR) | Freddie Mac K-Series | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0
Prepayment rate (annual CPR) | Freddie Mac K-Series | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0
Prepayment rate (annual CPR) | Freddie Mac K-Series | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0
Discount rate | ABS Issued Securities | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.04
Discount rate | ABS Issued Securities | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.15
Discount rate | ABS Issued Securities | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.04
Discount rate | Freddie Mac SLST | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.03
Discount rate | Freddie Mac SLST | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.04
Discount rate | Freddie Mac SLST | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.03
Discount rate | Freddie Mac K-Series | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.03
Discount rate | Freddie Mac K-Series | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.09
Discount rate | Freddie Mac K-Series | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.03
Default rate | ABS Issued Securities | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0
Default rate | ABS Issued Securities | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.14
Default rate | ABS Issued Securities | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.02
Default rate | Freddie Mac SLST | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.02
Default rate | Freddie Mac SLST | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.02
Default rate | Freddie Mac SLST | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.02
Default rate | Freddie Mac K-Series | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.01
Default rate | Freddie Mac K-Series | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.01
Default rate | Freddie Mac K-Series | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.01
Loss severity | ABS Issued Securities | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.20
Loss severity | ABS Issued Securities | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.44
Loss severity | ABS Issued Securities | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.21
Loss severity | Freddie Mac SLST | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.30
Loss severity | Freddie Mac SLST | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.30
Loss severity | Freddie Mac SLST | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.30
Loss severity | Freddie Mac K-Series | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.20
Loss severity | Freddie Mac K-Series | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.20
Loss severity | Freddie Mac K-Series | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
ABS issued, measurement inputs	0.20
Jumbo fixed rate loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, fair value | $	$ 2,738,346
Jumbo fixed rate loans | Whole loan spread to TBA price | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	1.89
Jumbo fixed rate loans | Whole loan spread to TBA price | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	2.52
Jumbo fixed rate loans | Whole loan spread to TBA price | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	2.21
Jumbo fixed rate loans | Whole loan spread to swap rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	0.0070
Jumbo fixed rate loans | Whole loan spread to swap rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	0.0220
Jumbo fixed rate loans | Whole loan spread to swap rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	0.0200
Jumbo hybrid loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, fair value | $	$ 396,274
Jumbo hybrid loans | Whole loan spread to swap rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	0.0050
Jumbo hybrid loans | Whole loan spread to swap rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	0.0125
Jumbo hybrid loans | Whole loan spread to swap rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	0.0086
Jumbo hybrid loans | Prepayment rate (annual CPR) | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	0.15
Jumbo hybrid loans | Prepayment rate (annual CPR) | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	0.15
Jumbo hybrid loans | Prepayment rate (annual CPR) | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	0.15
Jumbo loans committed to sell
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, fair value | $	$ 298,002
Jumbo loans committed to sell | Whole loan committed sales price | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	100.69
Jumbo loans committed to sell | Whole loan committed sales price | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	101.66
Jumbo loans committed to sell | Whole loan committed sales price | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	100.70
Legacy Sequoia
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, fair value | $	$ 519,958
Sequoia Choice
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, fair value | $	2,079,382
Freddie Mac SLST
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, fair value | $	1,222,669
Business purpose residential loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, fair value | $	$ 28,460
Business purpose residential loans | Prepayment rate (annual CPR) | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.02
Business purpose residential loans | Prepayment rate (annual CPR) | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.10
Business purpose residential loans | Prepayment rate (annual CPR) | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.03
Business purpose residential loans | Discount rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.12
Business purpose residential loans | Discount rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.12
Business purpose residential loans | Discount rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.12
Business purpose residential loans | Senior credit spread | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	0.0115
Business purpose residential loans | Senior credit spread | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	0.0115
Business purpose residential loans | Senior credit spread | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, measurement inputs	0.0115
Business purpose residential loans | Senior credit support | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.32
Business purpose residential loans | Senior credit support | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.32
Business purpose residential loans | Senior credit support | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.32
Residential bridge loans held-for-investment
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, fair value | $	$ 112,798
Residential bridge loans held-for-investment | Discount rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.07
Residential bridge loans held-for-investment | Discount rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.08
Residential bridge loans held-for-investment | Discount rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.07
Freddie Mac K-Series
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential loans, fair value | $	$ 2,144,598
Trading and AFS securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, fair value | $	$ 1,452,494
Trading and AFS securities | Prepayment rate (annual CPR) | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0
Trading and AFS securities | Prepayment rate (annual CPR) | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.60
Trading and AFS securities | Prepayment rate (annual CPR) | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.10
Trading and AFS securities | Discount rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.03
Trading and AFS securities | Discount rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.14
Trading and AFS securities | Discount rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.06
Trading and AFS securities | Default rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0
Trading and AFS securities | Default rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.27
Trading and AFS securities | Default rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.02
Trading and AFS securities | Loss severity | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0
Trading and AFS securities | Loss severity | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.40
Trading and AFS securities | Loss severity | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.21
Servicer advance investments
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, fair value | $	$ 300,468
Servicer advance investments | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected remaining life	1 year
Servicer advance investments | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected remaining life	1 year
Servicer advance investments | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected remaining life	1 year
Servicer advance investments | Prepayment rate (annual CPR) | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.08
Servicer advance investments | Prepayment rate (annual CPR) | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.16
Servicer advance investments | Prepayment rate (annual CPR) | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.14
Servicer advance investments | Discount rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.05
Servicer advance investments | Discount rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.05
Servicer advance investments | Discount rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading and AFS securities, measurement inputs	0.05
Servicer advance investments | Subordinate credit spread | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.0165
Servicer advance investments | Subordinate credit spread | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.0994
Servicer advance investments | Subordinate credit spread | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.0302
Servicer advance investments | Mortgage Servicing Amount | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.0001
Servicer advance investments | Mortgage Servicing Amount | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.0001
Servicer advance investments | Mortgage Servicing Amount | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.0001
MSRs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, fair value | $	$ 60,281
MSRs | Prepayment rate (annual CPR) | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.04
MSRs | Prepayment rate (annual CPR) | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.29
MSRs | Prepayment rate (annual CPR) | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.07
MSRs | Discount rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.11
MSRs | Discount rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.29
MSRs | Discount rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.11
MSRs | Per loan annual cost to service | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	82
MSRs | Per loan annual cost to service | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	82
MSRs | Per loan annual cost to service | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	82
Excess MSRs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, fair value | $	$ 27,312
Excess MSRs | Prepayment rate (annual CPR) | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.08
Excess MSRs | Prepayment rate (annual CPR) | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.15
Excess MSRs | Prepayment rate (annual CPR) | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.11
Excess MSRs | Discount rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.12
Excess MSRs | Discount rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.19
Excess MSRs | Discount rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.17
Excess MSRs | Mortgage Servicing Amount | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.0001
Excess MSRs | Mortgage Servicing Amount | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.0002
Excess MSRs | Mortgage Servicing Amount | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement inputs	0.0001
Guarantee asset
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Guarantees asset, fair value | $	$ 2,618
Guarantee asset | Prepayment rate (annual CPR) | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Guarantee asset, measurement inputs	0.08
Guarantee asset | Prepayment rate (annual CPR) | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Guarantee asset, measurement inputs	0.08
Guarantee asset | Prepayment rate (annual CPR) | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Guarantee asset, measurement inputs	0.08
Guarantee asset | Discount rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Guarantee asset, measurement inputs	0.11
Guarantee asset | Discount rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Guarantee asset, measurement inputs	0.11
Guarantee asset | Discount rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Guarantee asset, measurement inputs	0.11
REO
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
REO, fair value | $	$ 2,225
REO | Loss severity | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
REO, measurement inputs	0.02
REO | Loss severity | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
REO, measurement inputs	0.50
REO | Loss severity | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
REO, measurement inputs	0.18
Loan purchase commitments
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, fair value | $	$ 2,181
Loan purchase commitments | Whole loan spread to TBA price | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	1.89
Loan purchase commitments | Whole loan spread to TBA price | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	2.52
Loan purchase commitments | Whole loan spread to TBA price | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	2.51
Loan purchase commitments | Prepayment rate (annual CPR) | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	0.15
Loan purchase commitments | Prepayment rate (annual CPR) | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	0.15
Loan purchase commitments | Prepayment rate (annual CPR) | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	0.15
Loan purchase commitments | MSR multiple | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	0.8
Loan purchase commitments | MSR multiple | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	4.9
Loan purchase commitments | MSR multiple | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	2.7
Loan purchase commitments | Pull-through rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	0.10
Loan purchase commitments | Pull-through rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	0.98
Loan purchase commitments | Pull-through rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	0.69
Loan purchase commitments | Whole loan spread to swap rate - fixed rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	0.0070
Loan purchase commitments | Whole loan spread to swap rate - fixed rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	0.0220
Loan purchase commitments | Whole loan spread to swap rate - fixed rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	0.0198
Loan purchase commitments | Whole loan spread to swap rate - hybrid | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	0.0060
Loan purchase commitments | Whole loan spread to swap rate - hybrid | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	0.0100
Loan purchase commitments | Whole loan spread to swap rate - hybrid | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan purchase commitments, net, measurement inputs	0.0077

Residential Loans - Summary of

Residential Loans - Summary of Classifications and Carrying Value of Residential Loans (Details) - USD ($) $ in Thousands		Dec. 31, 2018	Dec. 31, 2017
Residential Loans Held For Sale
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	[1]	$ 1,048,801	$ 1,427,945
Residential Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		1,049,000	1,430,000
Residential loans, at lower of cost or fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		100	1,000
Legacy Sequoia | Residential Loans Held For Investment at Fair Value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		520,000	633,000
Sequoia Choice | Residential Loans Held For Investment at Fair Value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		2,080,000	620,000
Freddie Mac SLST | Residential Loans Held For Investment at Fair Value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		1,220,000
Residential Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		7,254,742	5,115,210
Residential Loans | Residential Loans Held For Sale
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		1,048,801	1,427,945
Residential Loans | Residential Loans | Jumbo Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		1,048,690	1,427,052
Residential Loans | Residential loans, at lower of cost or fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		111	893
Residential Loans | Residential Loans Held For Investment at Fair Value | Jumbo Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		6,205,941	3,687,265
Residential Loans | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		519,958	632,817
Residential Loans | Legacy Sequoia | Residential Loans Held For Sale
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		0	0
Residential Loans | Legacy Sequoia | Residential Loans | Jumbo Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in 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
SEC Schedule, 12-29, Real Estate Companies, Investment in 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
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		519,958	632,817
Residential Loans | Sequoia Choice
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		2,079,382	620,062
Residential Loans | Sequoia Choice | Residential Loans Held For Sale
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		0	0
Residential Loans | Sequoia Choice | Residential Loans | Jumbo Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in 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
SEC Schedule, 12-29, Real Estate Companies, Investment in 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
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		2,079,382	620,062
Residential Loans | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		1,222,669	0
Residential Loans | Freddie Mac SLST | Residential Loans Held For Sale
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		0	0
Residential Loans | Freddie Mac SLST | Residential Loans | Jumbo Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		0	0
Residential Loans | Freddie Mac SLST | Residential loans, at lower of cost or fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		0	0
Residential Loans | Freddie Mac SLST | Residential Loans Held For Investment at Fair Value | Jumbo Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		1,222,669	0
Redwood Trust Inc. | Residential Loans Held For Investment at Fair Value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment			2,430,000
Redwood Trust Inc. | Residential Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		3,432,733	3,862,331
Redwood Trust Inc. | Residential Loans | Residential Loans Held For Sale
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		1,048,801	1,427,945
Redwood Trust Inc. | Residential Loans | Residential Loans | Jumbo Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		1,048,690	1,427,052
Redwood Trust Inc. | Residential Loans | Residential loans, at lower of cost or fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		111	893
Redwood Trust Inc. | Residential Loans | Residential Loans Held For Investment at Fair Value | Jumbo Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		$ 2,383,932	$ 2,434,386
[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, 2018 and December 31, 2017, assets of consolidated VIEs totaled $6,331,191 and $1,259,774, respectively. At December 31, 2018 and December 31, 2017, liabilities of consolidated VIEs totaled $5,709,807 and $1,167,157, respectively. See Note 4 for further discussion.

Residential Loans - Additional

Residential Loans - Additional Information (Details)	12 Months Ended
	Dec. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)loan	Dec. 31, 2016USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,486	2,013
Total Principal	$ 1,034,434,000	$ 1,409,179,000
Transfers from loans held-for-sale to loans held-for-investment	2,062,809,000	1,245,430,000	$ 1,063,860,000
Transfers from loans held-for-investment to loans held-for-sale	15,717,000	98,854,000	$ 359,005,000
Sequoia Choice
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loans held as assets amount in foreclosure		0
Held-for sale residential loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	7,254,742,000	5,115,210,000
Held-for sale residential loans | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	519,958,000	632,817,000
Held-for sale residential loans | Sequoia Choice
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	2,079,382,000	620,062,000
Held-for sale residential loans | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	1,222,669,000	0
Redwood Trust Inc. | Held-for sale residential loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	3,432,733,000	$ 3,862,331,000
Redwood Trust Inc. | Held-for sale residential loans | Residential Real Estate | FHLB Chicago
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Residential mortgage loans securing FHLB advances	$ 2,380,000,000
Redwood Trust Inc. | Fixed rate residential mortgage
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Weighted average rate on loans	4.12%
Residential Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,484	2,009
Total Principal	$ 1,034,000,000	$ 1,410,000,000
Loan market valuation adjustment	$ 1,049,000,000	1,430,000,000
Number of loans in foreclosure | loan	0
Principal value	$ 7,070,000,000	5,640,000,000
Principal balance of loans sold during period	7,110,000,000	4,210,000,000
Valuation adjustments	23,000,000	31,000,000
Loan pledged as collateral	935,000,000
Loans held as assets amount in foreclosure	1,000,000
Residential Loans | Jumbo Loans | Held-for sale residential loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	1,048,690,000	1,427,052,000
Residential Loans | Jumbo Loans | Held-for sale residential loans | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	0	0
Residential Loans | Jumbo Loans | Held-for sale residential loans | Sequoia Choice
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	0	0
Residential Loans | Jumbo Loans | Held-for sale residential loans | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	0	0
Residential Loans | Redwood Trust Inc. | Jumbo Loans | Held-for sale residential loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	$ 1,048,690,000	$ 1,427,052,000
Residential Loans | Financing Receivables, Equal to Greater than 90 Days Past Due
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans past due | loan	1
Loans held as assets, 90 days or more past due	$ 600,000
Residential loans, at lower of cost or fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2	4
Total Principal	$ 100,000	$ 1,000,000
Loan market valuation adjustment	100,000	1,000,000
Loans held as assets, 90 days or more past due		$ 300,000
Number of loans in foreclosure | loan		0
Residential loans, at lower of cost or fair value | Held-for sale residential loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	111,000	$ 893,000
Residential loans, at lower of cost or fair value | Held-for sale residential loans | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	0	0
Residential loans, at lower of cost or fair value | Held-for sale residential loans | Sequoia Choice
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	0	0
Residential loans, at lower of cost or fair value | Held-for sale residential loans | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	0	0
Residential loans, at lower of cost or fair value | Redwood Trust Inc. | Held-for sale residential loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	$ 111,000	$ 893,000
Residential loans, at lower of cost or fair value | Financing Receivables, Equal to Greater than 90 Days Past Due
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans past due | loan	0	1
Residential Loans Held For Investment at Fair Value | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2,641	3,178
Total Principal	$ 545,000,000	$ 698,000,000
Loan market valuation adjustment	520,000,000	633,000,000
Loans held as assets, 90 days or more past due	14,000,000	$ 25,000,000
FICO credit score		728
Loan to value ratio		66.00%
Loans held as assets amount in foreclosure	5,000,000	$ 10,000,000
Valuation adjustments		$ 23,000,000
Residential Loans Held For Investment at Fair Value | Legacy Sequoia | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Valuation adjustments	$ 37,000,000
Residential Loans Held For Investment at Fair Value | Sequoia Choice
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2,800	806
Total Principal	$ 2,040,000,000	$ 605,000,000
Loan market valuation adjustment	$ 2,080,000,000	$ 620,000,000
Number of loans past due | loan	3	0
Loans held as assets, 90 days or more past due	$ 1,905,000
Number of loans in foreclosure | loan	0
FICO credit score		744
Loan to value ratio		75.00%
Valuation adjustments	$ (13,000,000)	$ (5,000,000)
Residential Loans Held For Investment at Fair Value | Sequoia Choice | Sequoia Choice
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Transfers from loans held-for-investment to loans held-for-sale	$ 1,780,000,000	$ 646,000,000
Residential Loans Held For Investment at Fair Value | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	7,900	0
Total Principal	$ 1,310,000,000
Loan market valuation adjustment	$ 1,220,000,000
Number of loans past due | loan	306
Loans held as assets, 90 days or more past due	$ 51,000,000
Number of loans in foreclosure | loan	0
FICO credit score	598
Loan to value ratio	68.00%
Valuation adjustments	$ 21,000,000
Residential Loans Held For Investment at Fair Value | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Valuation adjustments		$ (5,000,000)
Transfers from loans held-for-sale to loans held-for-investment		600,000,000
Transfers from loans held-for-investment to loans held-for-sale	16,000,000	99,000,000
Residential Loans Held For Investment at Fair Value | Jumbo Loans | Held-for sale residential loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	6,205,941,000	3,687,265,000
Residential Loans Held For Investment at Fair Value | Jumbo Loans | Held-for sale residential loans | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	519,958,000	632,817,000
Residential Loans Held For Investment at Fair Value | Jumbo Loans | Held-for sale residential loans | Sequoia Choice
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	2,079,382,000	620,062,000
Residential Loans Held For Investment at Fair Value | Jumbo Loans | Held-for sale residential loans | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	$ 1,222,669,000	$ 0
Residential Loans Held For Investment at Fair Value | Redwood Trust Inc.
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	3,296	3,292
Total Principal	$ 2,390,000,000	$ 2,410,000,000
Loan market valuation adjustment		$ 2,430,000,000
Number of loans in foreclosure | loan		0
Valuation adjustments	(30,000,000)
Transfers from loans held-for-sale to loans held-for-investment	$ 286,000,000
FICO credit score	768
Loan to value ratio	66.00%
Percentage of loans with fixed interest rate	87.00%
Residential Loans Held For Investment at Fair Value | Redwood Trust Inc. | Originated Between 2013 and 2017
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percentage of loan portfolio	96.00%
Residential Loans Held For Investment at Fair Value | Redwood Trust Inc. | Originated In 2012 And Prior Years
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percentage of loan portfolio	4.00%
Residential Loans Held For Investment at Fair Value | Redwood Trust Inc. | Hybrid or ARM Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Weighted average rate on loans	4.23%
Residential Loans Held For Investment at Fair Value | Redwood Trust Inc. | Jumbo Loans | Held-for sale residential loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	$ 2,383,932,000	$ 2,434,386,000
Residential Loans Held For Investment at Fair Value | Financing Receivables, Equal to Greater than 90 Days Past Due | Redwood Trust Inc.
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Total Principal	$ 1,000,000
Number of loans past due | loan	2	0
MSRs
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Mortgage servicing rights	$ 2,620,000,000

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, 2018	Dec. 31, 2017
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
California
Concentration Risk [Line Items]
Concentration risk percentage	40.00%	35.00%
Washington
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	9.00%
Texas
Concentration Risk [Line Items]
Concentration risk percentage	6.00%	7.00%
Florida
Concentration Risk [Line Items]
Concentration risk percentage	4.00%	4.00%
Georgia
Concentration Risk [Line Items]
Concentration risk percentage		2.00%
New Jersey
Concentration Risk [Line Items]
Concentration risk percentage	2.00%
New York
Concentration Risk [Line Items]
Concentration risk percentage	3.00%	2.00%
Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	35.00%	41.00%
Legacy Sequoia
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
Legacy Sequoia | California
Concentration Risk [Line Items]
Concentration risk percentage	19.00%	18.00%
Legacy Sequoia | Washington
Concentration Risk [Line Items]
Concentration risk percentage	1.00%	2.00%
Legacy Sequoia | Texas
Concentration Risk [Line Items]
Concentration risk percentage	6.00%	5.00%
Legacy Sequoia | Florida
Concentration Risk [Line Items]
Concentration risk percentage	13.00%	13.00%
Legacy Sequoia | Georgia
Concentration Risk [Line Items]
Concentration risk percentage		5.00%
Legacy Sequoia | New Jersey
Concentration Risk [Line Items]
Concentration risk percentage	4.00%
Legacy Sequoia | New York
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	9.00%
Legacy Sequoia | Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	47.00%	48.00%
Sequoia Choice
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
Sequoia Choice | California
Concentration Risk [Line Items]
Concentration risk percentage	39.00%	39.00%
Sequoia Choice | Washington
Concentration Risk [Line Items]
Concentration risk percentage	7.00%	7.00%
Sequoia Choice | Texas
Concentration Risk [Line Items]
Concentration risk percentage	8.00%	10.00%
Sequoia Choice | Florida
Concentration Risk [Line Items]
Concentration risk percentage	4.00%	4.00%
Sequoia Choice | Georgia
Concentration Risk [Line Items]
Concentration risk percentage		3.00%
Sequoia Choice | New Jersey
Concentration Risk [Line Items]
Concentration risk percentage	1.00%
Sequoia Choice | New York
Concentration Risk [Line Items]
Concentration risk percentage	5.00%	3.00%
Sequoia Choice | Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	36.00%	34.00%
Freddie Mac SLST
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	0.00%
Freddie Mac SLST | California
Concentration Risk [Line Items]
Concentration risk percentage	12.00%	0.00%
Freddie Mac SLST | Washington
Concentration Risk [Line Items]
Concentration risk percentage	3.00%	0.00%
Freddie Mac SLST | Texas
Concentration Risk [Line Items]
Concentration risk percentage	2.00%	0.00%
Freddie Mac SLST | Florida
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	0.00%
Freddie Mac SLST | Georgia
Concentration Risk [Line Items]
Concentration risk percentage		0.00%
Freddie Mac SLST | New Jersey
Concentration Risk [Line Items]
Concentration risk percentage	7.00%
Freddie Mac SLST | New York
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	0.00%
Freddie Mac SLST | Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	56.00%	0.00%
Redwood
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
Redwood | California
Concentration Risk [Line Items]
Concentration risk percentage	47.00%	45.00%
Redwood | Washington
Concentration Risk [Line Items]
Concentration risk percentage	5.00%	5.00%
Redwood | Texas
Concentration Risk [Line Items]
Concentration risk percentage	8.00%	9.00%
Redwood | Florida
Concentration Risk [Line Items]
Concentration risk percentage	5.00%	5.00%
Redwood | Georgia
Concentration Risk [Line Items]
Concentration risk percentage		1.00%
Redwood | New Jersey
Concentration Risk [Line Items]
Concentration risk percentage	1.00%
Redwood | New York
Concentration Risk [Line Items]
Concentration risk percentage	3.00%	4.00%
Redwood | Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	31.00%	31.00%

Residential Loans - Loan Produc

Residential Loans - Loan Product Type and Accompanying Loan Characteristics of Residential Loans (Details)	12 Months Ended
	Dec. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,486	2,013
Total Principal	$ 1,034,434,000	$ 1,409,179,000
30-89 Days DQ	559,000	1,913,000
90 Days DQ	747,000	$ 459,000
Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
90 Days DQ	$ 67,612,000
Residential loans, held-for-investment | Fixed Loans | Over $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.88%
Residential Loans Held For Sale
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
90 Days DQ	$ 747,000
Residential Loans Held For Sale | Hybrid ARM Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	108	93
Total Principal	$ 87,144,000	$ 78,884,000
30-89 Days DQ	0	0
90 Days DQ	$ 0	0
Residential Loans Held For Sale | Hybrid ARM Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.50%
Residential Loans Held For Sale | Hybrid ARM Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	7.38%
Residential Loans Held For Sale | Hybrid ARM Loans | $251 to $500
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 251,000	251,000
Loan Balance, maximum	$ 500,000	$ 500,000
Number of Loans | loan	8	8
Total Principal	$ 3,795,000	$ 3,708,000
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Residential Loans Held For Sale | Hybrid ARM Loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.88%	3.25%
Residential Loans Held For Sale | Hybrid ARM Loans | $251 to $500 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.38%	3.88%
Residential Loans Held For Sale | Hybrid ARM Loans | $501 to $750
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 501,000	$ 501,000
Loan Balance, maximum	$ 750,000	$ 750,000
Number of Loans | loan	50	44
Total Principal	$ 31,759,000	$ 28,165,000
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Residential Loans Held For Sale | Hybrid ARM Loans | $501 to $750 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.63%	3.00%
Residential Loans Held For Sale | Hybrid ARM Loans | $501 to $750 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	7.38%	3.88%
Residential Loans Held For Sale | Hybrid ARM Loans | $751 to $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 751,000	$ 751,000
Loan Balance, maximum	$ 1,000,000	$ 1,000,000
Number of Loans | loan	27	19
Total Principal	$ 23,478,000	$ 16,675,000
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Residential Loans Held For Sale | Hybrid ARM Loans | $751 to $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.88%	2.88%
Residential Loans Held For Sale | Hybrid ARM Loans | $751 to $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.25%	4.00%
Residential Loans Held For Sale | Hybrid ARM Loans | Over $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, maximum	$ 1,000,000	$ 1,000,000
Number of Loans | loan	23	22
Total Principal	$ 28,112,000	$ 30,336,000
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Residential Loans Held For Sale | Hybrid ARM Loans | Over $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.50%	3.25%
Residential Loans Held For Sale | Hybrid ARM Loans | Over $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.50%	4.00%
Residential Loans Held For Sale | Fixed Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,376	1,917
Total Principal	$ 947,140,000	$ 1,329,851,000
30-89 Days DQ	559,000	1,913,000
90 Days DQ	$ 747,000	459,000
Residential Loans Held For Sale | Fixed Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.13%
Residential Loans Held For Sale | Fixed Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	7.00%
Residential Loans Held For Sale | Fixed Loans | $0 to $250
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 0	0
Loan Balance, maximum	$ 250,000	$ 250,000
Number of Loans | loan	6	1
Total Principal	$ 1,180,000	$ 132,000
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Residential Loans Held For Sale | Fixed Loans | $0 to $250 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.38%	4.40%
Residential Loans Held For Sale | Fixed Loans | $0 to $250 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.75%	4.40%
Residential Loans Held For Sale | Fixed Loans | $251 to $500
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 251,000	$ 251,000
Loan Balance, maximum	$ 500,000	$ 500,000
Number of Loans | loan	188	330
Total Principal	$ 88,204,000	$ 153,021,000
30-89 Days DQ	0	495,000
90 Days DQ	$ 0	$ 459,000
Residential Loans Held For Sale | Fixed Loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.13%	3.25%
Residential Loans Held For Sale | Fixed Loans | $251 to $500 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.38%	5.63%
Residential Loans Held For Sale | Fixed Loans | $501 to $750
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 501,000	$ 501,000
Loan Balance, maximum	$ 750,000	$ 750,000
Number of Loans | loan	788	1,005
Total Principal	$ 475,935,000	$ 613,647,000
30-89 Days DQ	559,000	540,000
90 Days DQ	$ 747,000	$ 0
Residential Loans Held For Sale | Fixed Loans | $501 to $750 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.75%	2.88%
Residential Loans Held For Sale | Fixed Loans | $501 to $750 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	7.00%	6.00%
Residential Loans Held For Sale | Fixed Loans | $751 to $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 751,000	$ 751,000
Loan Balance, maximum	$ 1,000,000	$ 1,000,000
Number of Loans | loan	295	423
Total Principal	$ 255,429,000	$ 370,379,000
30-89 Days DQ	0	878,000
90 Days DQ	$ 0	$ 0
Residential Loans Held For Sale | Fixed Loans | $751 to $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.25%	3.00%
Residential Loans Held For Sale | Fixed Loans | $751 to $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.63%	6.25%
Residential Loans Held For Sale | Fixed Loans | Over $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, maximum	$ 1,000,000	$ 1,000,000
Number of Loans | loan	99	158
Total Principal	$ 126,392,000	$ 192,672,000
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Residential Loans Held For Sale | Fixed Loans | Over $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.75%	3.25%
Residential Loans Held For Sale | Fixed Loans | Over $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.13%	5.75%
Residential Loans Held For Sale | ARM Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2	3
Total Principal		$ 444,000
30-89 Days DQ		0
90 Days DQ	$ 0	0
Residential Loans Held For Sale | ARM Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.00%
Residential Loans Held For Sale | ARM Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.13%
Residential Loans Held For Sale | ARM Loans | $0 to $250
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 0	0
Loan Balance, maximum	$ 250,000	$ 250,000
Number of Loans | loan	2	2
Total Principal	$ 150,000	$ 158,000
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Residential Loans Held For Sale | ARM Loans | $0 to $250 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.00%	2.88%
Residential Loans Held For Sale | ARM Loans | $0 to $250 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.13%	3.00%
Residential Loans Held For Sale | ARM Loans | $251 to $500
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum		$ 251,000
Loan Balance, maximum		$ 500,000
Number of Loans | loan		1
Total Principal		$ 286,000
30-89 Days DQ		0
90 Days DQ		$ 0
Residential Loans Held For Sale | ARM Loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		1.50%
Residential Loans Held For Sale | ARM Loans | $251 to $500 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		1.50%
Legacy Sequoia | Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2,641	3,178
Total Principal	$ 545,209,000	$ 697,922,000
30-89 Days DQ	16,291,000	20,303,000
90 Days DQ	$ 13,955,000	$ 25,457,000
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	21	33
Total Principal	$ 9,466,000	$ 15,211,000
30-89 Days DQ	0	0
90 Days DQ	$ 0	641,000
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.63%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.00%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $0 to $250
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 0	0
Loan Balance, maximum	$ 250,000	$ 250,000
Number of Loans | loan	4	4
Total Principal	$ 769,000	$ 530,000
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $0 to $250 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.63%	3.25%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $0 to $250 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.00%	3.75%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $251 to $500
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 251,000	$ 251,000
Loan Balance, maximum	$ 500,000	$ 500,000
Number of Loans | loan	10	17
Total Principal	$ 3,675,000	$ 6,170,000
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in 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
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.88%	3.75%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $501 to $750
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 501,000	$ 501,000
Loan Balance, maximum	$ 750,000	$ 750,000
Number of Loans | loan	6	11
Total Principal	$ 3,667,000	$ 7,091,000
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 641,000
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $501 to $750 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.38%	3.38%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | $501 to $750 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.00%	3.75%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | Over $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum
Loan Balance, maximum	$ 1,000,000	$ 1,000,000
Number of Loans | loan	1	1
Total Principal	$ 1,355,000	$ 1,420,000
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | Over $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.88%	3.75%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | Over $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.88%	3.75%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2,620	3,145
Total Principal	$ 535,743,000	$ 682,711,000
30-89 Days DQ	16,291,000	20,303,000
90 Days DQ	$ 13,955,000	24,816,000
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	1.25%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.63%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $0 to $250
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 0	0
Loan Balance, maximum	$ 250,000	$ 250,000
Number of Loans | loan	1,988	2,324
Total Principal	$ 206,490,000	$ 253,438,000
30-89 Days DQ	7,179,000	7,436,000
90 Days DQ	$ 3,952,000	$ 7,284,000
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $0 to $250 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	1.25%	1.25%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $0 to $250 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.50%	5.16%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $251 to $500
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 251,000	$ 251,000
Loan Balance, maximum	$ 500,000	$ 500,000
Number of Loans | loan	424	541
Total Principal	$ 148,154,000	$ 189,360,000
30-89 Days DQ	5,989,000	9,082,000
90 Days DQ	$ 4,368,000	$ 9,178,000
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	1.25%	1.00%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $251 to $500 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.63%	5.63%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $501 to $750
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 501,000	$ 501,000
Loan Balance, maximum	$ 750,000	$ 750,000
Number of Loans | loan	110	151
Total Principal	$ 67,471,000	$ 91,244,000
30-89 Days DQ	1,309,000	1,995,000
90 Days DQ	$ 1,880,000	$ 2,589,000
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $501 to $750 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	1.63%	1.63%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $501 to $750 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.50%	4.00%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $751 to $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 751,000	$ 751,000
Loan Balance, maximum	$ 1,000,000	$ 1,000,000
Number of Loans | loan	61	76
Total Principal	$ 51,918,000	$ 65,276,000
30-89 Days DQ	791,000	1,790,000
90 Days DQ	$ 2,561,000	$ 1,725,000
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $751 to $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	1.63%	1.38%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | $751 to $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.38%	3.38%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | Over $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum
Loan Balance, maximum	$ 1,000,000	$ 1,000,000
Number of Loans | loan	37	53
Total Principal	$ 61,710,000	$ 83,393,000
30-89 Days DQ	1,023,000	0
90 Days DQ	$ 1,194,000	$ 4,040,000
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | Over $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	1.63%	1.00%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | Over $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.38%	4.63%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2,800	806
Total Principal	$ 2,041,010,000	$ 604,747,000
30-89 Days DQ	10,789,000	1,158,000
90 Days DQ	$ 1,905,000	0
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.75%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.50%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $0 to $250
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 0	0
Loan Balance, maximum	$ 250,000	$ 250,000
Number of Loans | loan	29	4
Total Principal	$ 5,484,000	$ 641,000
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $0 to $250 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.75%	2.75%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $0 to $250 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.63%	4.75%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $251 to $500
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 251,000	$ 251,000
Loan Balance, maximum	$ 500,000	$ 500,000
Number of Loans | loan	336	85
Total Principal	$ 149,917,000	$ 38,900,000
30-89 Days DQ	1,419,000	486,000
90 Days DQ	$ 925,000	$ 0
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.13%	3.13%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $251 to $500 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.13%	5.75%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $501 to $750
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 501,000	$ 501,000
Loan Balance, maximum	$ 750,000	$ 750,000
Number of Loans | loan	1,363	388
Total Principal	$ 841,692,000	$ 240,538,000
30-89 Days DQ	3,633,000	672,000
90 Days DQ	$ 0	$ 0
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $501 to $750 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.13%	3.13%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $501 to $750 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.38%	6.25%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $751 to $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 751,000	$ 751,000
Loan Balance, maximum	$ 1,000,000	$ 1,000,000
Number of Loans | loan	761	239
Total Principal	$ 659,845,000	$ 210,235,000
30-89 Days DQ	3,549,000	0
90 Days DQ	$ 980,000	$ 0
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $751 to $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.25%	3.25%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | $751 to $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.50%	6.50%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | Over $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, maximum	$ 1,000,000	$ 1,000,000
Number of Loans | loan	311	90
Total Principal	$ 384,072,000	$ 114,433,000
30-89 Days DQ	2,188,000	0
90 Days DQ	$ 0	$ 0
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | Over $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.13%	3.13%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | Over $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.88%	5.88%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	7,900
Total Principal	$ 1,310,974,000
30-89 Days DQ	198,945,000
90 Days DQ	$ 50,528,000
Freddie Mac SLST | Residential loans, held-for-investment | Fixed Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.00%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	10.50%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed Loans | $0 to $250
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 0
Loan Balance, maximum	$ 250,000
Number of Loans | loan	6,404
Total Principal	$ 830,118,000
30-89 Days DQ	130,608,000
90 Days DQ	$ 30,686,000
Freddie Mac SLST | Residential loans, held-for-investment | Fixed Loans | $0 to $250 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.00%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed Loans | $0 to $250 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	10.50%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed Loans | $251 to $500
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 251,000
Loan Balance, maximum	$ 500,000
Number of Loans | loan	1,469
Total Principal	$ 466,222,000
30-89 Days DQ	66,706,000
90 Days DQ	$ 19,319,000
Freddie Mac SLST | Residential loans, held-for-investment | Fixed Loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.00%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed Loans | $251 to $500 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	7.38%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed Loans | $501 to $750
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 501,000
Loan Balance, maximum	$ 750,000
Number of Loans | loan	27
Total Principal	$ 14,634,000
30-89 Days DQ	1,631,000
90 Days DQ	$ 523,000
Freddie Mac SLST | Residential loans, held-for-investment | Fixed Loans | $501 to $750 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.00%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed Loans | $501 to $750 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.88%
Redwood | Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	3,296	3,292
Total Principal	$ 2,385,330,000	$ 2,407,993,000
30-89 Days DQ	6,086,000	10,978,000
90 Days DQ	$ 1,224,000	$ 0
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	385	259
Total Principal	$ 303,566,000	$ 203,461,000
30-89 Days DQ	1,863,000	3,214,000
90 Days DQ	$ 0	0
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.63%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.38%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $0 to $250
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 0	0
Loan Balance, maximum	$ 250,000	$ 250,000
Number of Loans | loan	12	7
Total Principal	$ 2,190,000	$ 1,589,000
30-89 Days DQ	59,000	438,000
90 Days DQ	$ 0	$ 0
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $0 to $250 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.88%	3.50%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $0 to $250 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.88%	3.88%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $251 to $500
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 251,000	$ 251,000
Loan Balance, maximum	$ 500,000	$ 500,000
Number of Loans | loan	59	43
Total Principal	$ 23,986,000	$ 16,703,000
30-89 Days DQ	0	566,000
90 Days DQ	$ 0	$ 0
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.63%	2.63%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $251 to $500 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.75%	4.88%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $501 to $750
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 501,000	$ 501,000
Loan Balance, maximum	$ 750,000	$ 750,000
Number of Loans | loan	116	87
Total Principal	$ 73,360,000	$ 55,709,000
30-89 Days DQ	692,000	1,226,000
90 Days DQ	$ 0	$ 0
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $501 to $750 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in 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
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.75%	5.13%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $751 to $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 751,000	$ 751,000
Loan Balance, maximum	$ 1,000,000	$ 1,000,000
Number of Loans | loan	129	82
Total Principal	$ 111,879,000	$ 71,819,000
30-89 Days DQ	0	984,000
90 Days DQ	$ 0	$ 0
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $751 to $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.88%	2.88%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | $751 to $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.38%	6.00%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | Over $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, maximum	$ 1,000,000	$ 1,000,000
Number of Loans | loan	69	40
Total Principal	$ 92,151,000	$ 57,641,000
30-89 Days DQ	1,112,000	0
90 Days DQ	$ 0	$ 0
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | Over $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in 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
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.50%	5.00%
Redwood | Residential loans, held-for-investment | Fixed Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2,911	3,033
Total Principal	$ 2,081,764,000	$ 2,204,532,000
30-89 Days DQ	4,223,000	7,764,000
90 Days DQ	$ 1,224,000	0
Redwood | Residential loans, held-for-investment | Fixed Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.75%
Redwood | Residential loans, held-for-investment | Fixed Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.75%
Redwood | Residential loans, held-for-investment | Fixed Loans | $0 to $250
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 0	0
Loan Balance, maximum	$ 250,000	$ 250,000
Number of Loans | loan	36	34
Total Principal	$ 6,737,000	$ 6,758,000
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Redwood | Residential loans, held-for-investment | Fixed Loans | $0 to $250 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.30%	3.13%
Redwood | Residential loans, held-for-investment | Fixed Loans | $0 to $250 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.08%	5.08%
Redwood | Residential loans, held-for-investment | Fixed Loans | $251 to $500
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 251,000	$ 251,000
Loan Balance, maximum	$ 500,000	$ 500,000
Number of Loans | loan	679	681
Total Principal	$ 292,730,000	$ 296,950,000
30-89 Days DQ	0	1,380,000
90 Days DQ	$ 0	$ 0
Redwood | Residential loans, held-for-investment | Fixed Loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.75%	2.80%
Redwood | Residential loans, held-for-investment | Fixed Loans | $251 to $500 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.75%	6.13%
Redwood | Residential loans, held-for-investment | Fixed Loans | $501 to $750
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 501,000	$ 501,000
Loan Balance, maximum	$ 750,000	$ 750,000
Number of Loans | loan	1,213	1,261
Total Principal	$ 746,503,000	$ 777,103,000
30-89 Days DQ	1,320,000	3,818,000
90 Days DQ	$ 1,224,000	$ 0
Redwood | Residential loans, held-for-investment | Fixed Loans | $501 to $750 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in 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
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.75%	6.75%
Redwood | Residential loans, held-for-investment | Fixed Loans | $751 to $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	$ 751,000	$ 751,000
Loan Balance, maximum	$ 1,000,000	$ 1,000,000
Number of Loans | loan	599	649
Total Principal	$ 517,075,000	$ 559,426,000
30-89 Days DQ	903,000	2,566,000
90 Days DQ	$ 0	$ 0
Redwood | Residential loans, held-for-investment | Fixed Loans | $751 to $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in 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
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.13%	5.00%
Redwood | Residential loans, held-for-investment | Fixed Loans | Over $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum
Loan Balance, maximum	$ 1,000,000	$ 1,000,000
Number of Loans | loan	384	408
Total Principal	$ 518,719,000	$ 564,295,000
30-89 Days DQ	2,000,000	0
90 Days DQ	$ 0	$ 0
Redwood | Residential loans, held-for-investment | Fixed Loans | Over $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in 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
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		5.00%

Business Purpose Residential _3

Business Purpose Residential Loans (Details)	12 Months Ended
	Dec. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)loan	Dec. 31, 2016USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,486	2,013
Total Principal	$ 1,034,434,000	$ 1,409,179,000
Purchases of held-for-sale loans	7,162,131,000	5,705,842,000	$ 4,953,619,000
Proceeds from sales of held-for-sale loans	5,383,313,000	3,903,147,000	$ 4,192,671,000
Business purpose residential loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Residential loans	141,258,000	0
Single-family rental loans, held-for-sale at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Residential loans	$ 28,460,000	0
Number of Loans | loan	11
Total Principal	$ 27,566,000
Number of loans past due | loan	0
Number of loans in foreclosure | loan	0
Purchases of held-for-sale loans	$ 28,000,000
Proceeds from sales of held-for-sale loans	0
Gain (loss) on investments	300,000
Collateral amounts	$ 28,000,000
Loans maturity, one	5 years
Loans maturity, two	7 years
Loans maturity, three	10 years
Weighted average coupon rate	5.90%
Contract maturities	7 years
Weighted average original loan-to-value (LTV)	64.00%
Weighted-average debt service coverage ratio	1.29
Residential bridge loans held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Residential loans	$ 112,798,000	$ 0
Number of Loans | loan	157
Total Principal	$ 112,360,000
Number of loans past due | loan	7
Number of loans in foreclosure | loan	0
Purchases of held-for-sale loans	$ 140,000,000
Proceeds from sales of held-for-sale loans	0
Gain (loss) on investments	(100,000)
Collateral amounts	$ 98,000,000
Weighted average coupon rate	9.16%
Weighted average original loan-to-value (LTV)	76.00%
Unpaid principal balance on delinquent or foreclosure loans	$ 12,000,000
Weighted average original Fair Isaac Corporation (FICO) score	698
Estimated rehabilitated loan-to-value ratio	59.00%
Residential bridge loans held-for-investment | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Contract maturities	6 months
Residential bridge loans held-for-investment | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Contract maturities	24 months

Business Purpose Residential _4

Business Purpose Residential Loans - Geographic Concentration of Business Purpose Loans (Details)	12 Months Ended
	Dec. 31, 2018
Single-family rental loans, held-for-sale at fair value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	100.00%
Single-family rental loans, held-for-sale at fair value | Florida
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	69.00%
Single-family rental loans, held-for-sale at fair value | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	14.00%
Single-family rental loans, held-for-sale at fair value | California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	0.00%
Single-family rental loans, held-for-sale at fair value | Utah
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	0.00%
Single-family rental loans, held-for-sale at fair value | Other states (none greater than 5%)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	17.00%
Residential bridge loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	100.00%
Residential bridge loans held-for-investment | Florida
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	7.00%
Residential bridge loans held-for-investment | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	0.00%
Residential bridge loans held-for-investment | California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	79.00%
Residential bridge loans held-for-investment | Utah
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5.00%
Residential bridge loans held-for-investment | Other states (none greater than 5%)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	9.00%

Business Purpose Residential _5

Business Purpose Residential Loans - Product Types and Characteristics of Business Purpose Loans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	1,486	2,013
Total Principal	$ 1,034,434	$ 1,409,179
30-89 Days DQ	559	1,913
90 Days DQ	$ 747	$ 459
Single-family rental loans, held-for-sale at fair value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	11
Total Principal	$ 27,566
30-89 Days DQ	0
90 Days DQ	0
Single-family rental loans, held-for-sale at fair value | $251 to $500
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	251
Loan Balance, maximum	$ 500
Number of Loans | loan	2
Total Principal	$ 787
30-89 Days DQ	0
90 Days DQ	$ 0
Single-family rental loans, held-for-sale at fair value | $251 to $500 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6.79%
Single-family rental loans, held-for-sale at fair value | $251 to $500 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	7.47%
Single-family rental loans, held-for-sale at fair value | $501 to $750
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 501
Loan Balance, maximum	$ 750
Number of Loans | loan	2
Total Principal	$ 1,252
30-89 Days DQ	0
90 Days DQ	$ 0
Single-family rental loans, held-for-sale at fair value | $501 to $750 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6.12%
Single-family rental loans, held-for-sale at fair value | $501 to $750 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	7.25%
Single-family rental loans, held-for-sale at fair value | $751 to $1,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 751
Loan Balance, maximum	$ 1,000
Number of Loans | loan	3
Total Principal	$ 2,488
30-89 Days DQ	0
90 Days DQ	$ 0
Single-family rental loans, held-for-sale at fair value | $751 to $1,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	5.91%
Single-family rental loans, held-for-sale at fair value | $751 to $1,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6.58%
Single-family rental loans, held-for-sale at fair value | Over $1,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, maximum	$ 1,000
Number of Loans | loan	4
Total Principal	$ 23,039
30-89 Days DQ	0
90 Days DQ	$ 0
Single-family rental loans, held-for-sale at fair value | Over $1,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	5.62%
Single-family rental loans, held-for-sale at fair value | Over $1,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6.94%
Residential bridge loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	157
Total Principal	$ 112,360
30-89 Days DQ	4,991
90 Days DQ	12,134
Residential bridge loans held-for-investment | $0 to $250
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	0
Loan Balance, maximum	$ 250
Number of Loans | loan	50
Total Principal	$ 7,941
30-89 Days DQ	262
90 Days DQ	$ 695
Residential bridge loans held-for-investment | $0 to $250 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	8.00%
Residential bridge loans held-for-investment | $0 to $250 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	12.00%
Residential bridge loans held-for-investment | $251 to $500
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 251
Loan Balance, maximum	$ 500
Number of Loans | loan	38
Total Principal	$ 13,297
30-89 Days DQ	636
90 Days DQ	$ 469
Residential bridge loans held-for-investment | $251 to $500 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	8.00%
Residential bridge loans held-for-investment | $251 to $500 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	10.00%
Residential bridge loans held-for-investment | $501 to $750
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 501
Loan Balance, maximum	$ 750
Number of Loans | loan	21
Total Principal	$ 12,410
30-89 Days DQ	1,769
90 Days DQ	$ 0
Residential bridge loans held-for-investment | $501 to $750 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	7.50%
Residential bridge loans held-for-investment | $501 to $750 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	10.00%
Residential bridge loans held-for-investment | $751 to $1,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 751
Loan Balance, maximum	$ 1,000
Number of Loans | loan	19
Total Principal	$ 16,937
30-89 Days DQ	840
90 Days DQ	$ 0
Residential bridge loans held-for-investment | $751 to $1,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	7.50%
Residential bridge loans held-for-investment | $751 to $1,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	10.00%
Residential bridge loans held-for-investment | Over $1,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, maximum	$ 1,000
Number of Loans | loan	29
Total Principal	$ 61,775
30-89 Days DQ	1,484
90 Days DQ	$ 10,970
Residential bridge loans held-for-investment | Over $1,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	8.00%
Residential bridge loans held-for-investment | Over $1,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	10.00%

Multifamily Loans (Details)

Multifamily Loans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,486	2,013
Total Principal | $	$ 1,034,434	$ 1,409,179
Multifamily loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	162	0
Total Principal | $	$ 2,126,698
Residential loans | $	$ 2,140,000
Weighted average original loan-to-value (LTV)	69.00%
Weighted average coupon rate	4.16%
Contract maturities	7 years
Number of loans past due | loan	0
Number of loans in foreclosure | loan	0
Valuation adjustment gain (loss) | $	$ 47,000
Multifamily loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Weighted average maturity (in years)	7 years
Multifamily loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Weighted average maturity (in years)	10 years

Multifamily Loans - Geographic

Multifamily Loans - Geographic Concentration of Multifamily Loans (Details) - Multifamily loans	12 Months Ended
	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	100.00%
California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	11.00%
Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	9.00%
Arizona
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	8.00%
Georgia
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	6.00%
Other states (none greater than 5%)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	66.00%

Multifamily Loans - Product Typ

Multifamily Loans - Product Types and Characteristics of Multifamily Loans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	1,486	2,013
Total Principal	$ 1,034,434	$ 1,409,179
30-89 Days DQ	559	1,913
90 Days DQ	$ 747	$ 459
Multifamily loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	162	0
Total Principal	$ 2,126,698
30-89 Days DQ	0
90 Days DQ	0
Multifamily loans | $1,001 to $10,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	1,000
Loan Balance, maximum	$ 10,000
Number of Loans | loan	70
Total Principal	$ 394,373
30-89 Days DQ	0
90 Days DQ	$ 0
Multifamily loans | $1,001 to $10,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	3.29%
Multifamily loans | $1,001 to $10,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	4.73%
Multifamily loans | $10,001 to $20,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 10,001
Loan Balance, maximum	$ 20,000
Number of Loans | loan	66
Total Principal	$ 960,992
30-89 Days DQ	0
90 Days DQ	$ 0
Multifamily loans | $10,001 to $20,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	3.54%
Multifamily loans | $10,001 to $20,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	4.61%
Multifamily loans | $20,001 to $30,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 20,001
Loan Balance, maximum	$ 30,000
Number of Loans | loan	16
Total Principal	$ 373,036
30-89 Days DQ	0
90 Days DQ	$ 0
Multifamily loans | $20,001 to $30,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	3.65%
Multifamily loans | $20,001 to $30,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	4.72%
Multifamily loans | $30,001 to $40,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 30,001
Loan Balance, maximum	$ 40,000
Number of Loans | loan	7
Total Principal	$ 244,074
30-89 Days DQ	0
90 Days DQ	$ 0
Multifamily loans | $30,001 to $40,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	3.62%
Multifamily loans | $30,001 to $40,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	4.71%
Multifamily loans | Over $40,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, maximum	$ 40,000
Number of Loans | loan	3
Total Principal	$ 154,223
30-89 Days DQ	0
90 Days DQ	$ 0
Multifamily loans | Over $40,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	3.74%
Multifamily loans | Over $40,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	4.18%

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, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Trading		$ 1,118,612	$ 968,844
Available-for-sale securities		333,882	507,666
Total Real Estate Securities	[1]	$ 1,452,494	$ 1,476,510
[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, 2018 and December 31, 2017, assets of consolidated VIEs totaled $6,331,191 and $1,259,774, respectively. At December 31, 2018 and December 31, 2017, liabilities of consolidated VIEs totaled $5,709,807 and $1,167,157, 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, 2018	Dec. 31, 2017
Investment Holdings [Line Items]
Trading securities	$ 1,118,612	$ 968,844
Senior IO Securities
Investment Holdings [Line Items]
Trading securities	158,670	69,974
Subordinate Securities | Mezzanine
Investment Holdings [Line Items]
Trading securities	610,819	563,475
Subordinate Securities | Subordinate
Investment Holdings [Line Items]
Trading securities	$ 349,123	$ 335,395

Real Estate Securities - Additi

Real Estate Securities - Additional Information (Details)	12 Months Ended
	Dec. 31, 2018USD ($)Investment	Dec. 31, 2017USD ($)Investment	Dec. 31, 2016USD ($)
Investment Holdings [Line Items]
Trading securities pledged as collateral	$ 747,000,000
Trading securities	1,118,612,000	$ 968,844,000
Trading securities acquired	688,000,000	661,000,000
Trading securities sold	415,000,000	132,000,000
Change in trading securities	(8,000,000)	40,000,000
AFS securities acquired	8,000,000	40,000,000
AFS securities sold	144,000,000	90,000,000
AFS net realized gains	$ 27,000,000	$ 14,000,000
Number of AFS securities | Investment	128	167
Number of securities in unrealized loss position | Investment	7	9
Number of securities in a continuous unrealized loss position for twelve consecutive months or longer | Investment	3	3
Other than temporary impairment losses, income statement	$ 100,000	$ 1,000,000
Investment fair value changes, net	(25,689,000)	10,374,000	$ (28,574,000)
Accumulated other comprehensive income, other-than-temporary impairments	1,000,000	400,000
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	1,000,000
Investment fair value changes, net	(89,000)	(1,012,000)
Residential
Investment Holdings [Line Items]
AFS securities pledged as collateral	844,000,000	788,000,000
Gross unrealized losses	548,000	1,367,000
Residential | Subordinate Securities
Investment Holdings [Line Items]
Gross unrealized losses	499,000	132,000
Sequoia Securities | Subordinate Securities
Investment Holdings [Line Items]
Trading securities	68,000,000	68,000,000
Interest Only Senior Trading Securities
Investment Holdings [Line Items]
Unpaid principal balance	78,000,000	0
Debt securities, trading	82,000,000	70,000,000
Interest Only Senior Trading Securities | Certificated Servicing Strips
Investment Holdings [Line Items]
Debt securities, trading	43,000,000	15,000,000
Trading securities | Residential Subordinate Securities
Investment Holdings [Line Items]
Unpaid principal balance	1,080,000,000	943,000,000
Credit Risk Transfer (CRT) Securities | Mezzanine Securities
Investment Holdings [Line Items]
Trading securities	960,000,000	899,000,000
Credit Risk Transfer (CRT) Securities | Subordinate Securities
Investment Holdings [Line Items]
Trading securities	238,000,000	301,000,000
Other Third Party Securities | Subordinate Securities
Investment Holdings [Line Items]
Trading securities	225,000,000	206,000,000
Third Party Multifamily Mortgage-backed Securities | Subordinate Securities
Investment Holdings [Line Items]
Trading securities	429,000,000	$ 324,000,000
Residential
Investment Holdings [Line Items]
Marketable securities, less than five years	0
Marketable securities, due from five to ten years	2,000,000
Residential | AFS Securities
Investment Holdings [Line Items]
AFS securities pledged as collateral	98,000,000
Sequoia Choice | Sequoia Securities
Investment Holdings [Line Items]
Trading securities pledged as collateral	130,000,000
Freddie Mac SLST | Sequoia Securities
Investment Holdings [Line Items]
Trading securities pledged as collateral	229,000,000
Freddie Mac K-Series | Sequoia Securities
Investment Holdings [Line Items]
Trading securities pledged as collateral	$ 18,000,000

Real Estate Securities - Availa

Real Estate Securities - Available for Sale Securities by Collateral Type (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Investment Holdings [Line Items]
Available-for-sale securities	$ 333,882	$ 507,666
Senior IO Securities
Investment Holdings [Line Items]
Available-for-sale securities	87,615	179,864
Subordinate Securities | Mezzanine
Investment Holdings [Line Items]
Available-for-sale securities	36,407	92,002
Subordinate Securities | Subordinate
Investment Holdings [Line Items]
Available-for-sale securities	$ 209,860	$ 235,800

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, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Carrying Value	$ 333,882	$ 507,666
Senior IO Securities
Debt Securities, Available-for-sale [Line Items]
Carrying Value	87,615	179,864
Residential
Debt Securities, Available-for-sale [Line Items]
Principal balance	431,112	608,145
Credit reserve	(41,370)	(46,549)
Unamortized discount, net	(151,200)	(183,753)
Amortized cost	238,542	377,843
Gross unrealized gains	95,888	131,190
Gross unrealized losses	(548)	(1,367)
Carrying Value	333,882	507,666
Residential | Senior IO Securities
Debt Securities, Available-for-sale [Line Items]
Principal balance	91,736	189,125
Credit reserve	(7,790)	(8,756)
Unamortized discount, net	(18,460)	(44,041)
Amortized cost	65,486	136,328
Gross unrealized gains	22,178	44,771
Gross unrealized losses	(49)	(1,235)
Carrying Value	87,615	179,864
Residential | Mezzanine
Debt Securities, Available-for-sale [Line Items]
Principal balance	36,852	91,471
Credit reserve	0	0
Unamortized discount, net	(3,697)	(9,407)
Amortized cost	33,155	82,064
Gross unrealized gains	3,252	9,938
Gross unrealized losses	0	0
Carrying Value	36,407	92,002
Residential | Subordinate Securities
Debt Securities, Available-for-sale [Line Items]
Principal balance	302,524	327,549
Credit reserve	(33,580)	(37,793)
Unamortized discount, net	(129,043)	(130,305)
Amortized cost	139,901	159,451
Gross unrealized gains	70,458	76,481
Gross unrealized losses	(499)	(132)
Carrying Value	$ 209,860	$ 235,800

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, 2018	Dec. 31, 2017
Credit Reserve
Beginning balance	$ 46,549	$ 47,473
Amortization of net discount	0	0
Realized credit losses	(2,165)	(4,187)
Acquisitions	6,315	9,118
Sales, calls, other	(1,850)	(3,404)
Impairments	89	1,011
Transfers to (release of) credit reserves, net	(7,568)	(3,462)
Ending Balance	41,370	46,549
Unamortized Discount, Net
Beginning balance	183,753	198,112
Amortization of net discount	(14,098)	(18,795)
Realized credit losses	0	0
Acquisitions	2,716	13,080
Sales, calls, other	(28,739)	(12,106)
Impairments	0	0
Transfers to (release of) credit reserves, net	7,568	3,462
Ending Balance	$ 151,200	$ 183,753

Real Estate Securities - Comp_2

Real Estate Securities - Components of Carrying Value of Residential Available for Sale Securities in Unrealized Loss Position (Details) - Residential - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Less Than 12 Consecutive Months Amortized Cost	$ 12,923	$ 8,637
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(499)	(132)
Less Than 12 Consecutive Months Unrealized Losses	12,424	8,505
12 Consecutive Months or Longer Amortized Cost	7,464	28,557
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(49)	(1,235)
12 Consecutive Months or Longer Unrealized Losses	$ 7,415	$ 27,322

Real Estate Securities - Summar

Real Estate Securities - Summary of Significant Valuation Assumptions for Available for Sale Securities (Details) - Prime	12 Months Ended
	Dec. 31, 2018
Minimum
Debt Securities, Available-for-sale [Line Items]
Prepayment rates	6.00%
Projected losses	0.20%
Maximum
Debt Securities, Available-for-sale [Line Items]
Prepayment rates	8.00%
Projected losses	1.00%

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, 2018	Dec. 31, 2017	Dec. 31, 2016
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Balance at beginning of period	$ 21,037	$ 28,261	$ 28,277
Initial credit impairments	76	178	346
Subsequent credit impairments	0	47	8
Securities sold, or expected to sell	(1,218)	(4,898)	(261)
Securities with no outstanding principal at period end	(1,243)	(2,551)	(109)
Balance at End of Period	$ 18,652	$ 21,037	$ 28,261

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, 2018	Dec. 31, 2017	Dec. 31, 2016
Debt Securities, Available-for-sale [Line Items]
Total Realized Gains on Sales and Calls of AFS Securities, net	$ 27,041	$ 14,107	$ 22,515
Sales
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	27,127	13,927	23,598
Gross realized losses	(129)	0	(2,293)
Calls
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	43	677	1,210
Gross realized losses	$ 0	$ (497)	$ 0

Other Investments - Summary of

Other Investments - Summary of Other Investments (Details) - USD ($) $ in Thousands		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Investment [Line Items]
Servicing asset, fair value		$ 300,000
Loan held-for-investment, amount		39,703	$ 0
Other Investments	[1]	438,518	63,598
5 Arches, LLC
Investment [Line Items]
Carrying amount of equity method investments		10,754	0
Mortgage servicing rights
Investment [Line Items]
Servicing asset, fair value		60,281	63,598	$ 118,526	$ 191,976
Residential Loans
Investment [Line Items]
Servicing asset, fair value		300,468	0
Excess MSRs
Investment [Line Items]
Servicing asset, fair value		$ 27,312	$ 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, 2018 and December 31, 2017, assets of consolidated VIEs totaled $6,331,191 and $1,259,774, respectively. At December 31, 2018 and December 31, 2017, liabilities of consolidated VIEs totaled $5,709,807 and $1,167,157, respectively. See Note 4 for further discussion.

Other Investments - Additional

Other Investments - Additional Information (Details) - USD ($) $ in Thousands	Jan. 22, 2019	May 01, 2018	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Feb. 28, 2019	Dec. 31, 2015
Investment [Line Items]
Commitment to fund partnership			$ 36,000								$ 57,000
Commitment to fund partnership, funded amount			36,000								36,000
Servicing asset, fair value			300,000								300,000
Interest income			$ 119,725	$ 99,397	$ 82,976	$ 76,619	$ 71,468	$ 62,737	$ 59,224	$ 54,628	378,717	$ 248,057	$ 246,355
Investment fair value changes, net											(25,689)	10,374	(28,574)
Other income, net											$ 12,874	12,436	20,691
Subsequent Event
Investment [Line Items]
Commitment to fund partnership, funded amount														$ 7,000
5 Arches, LLC
Investment [Line Items]
Minority interest, percentage		20.00%	20.00%								20.00%
Payments to acquire equity method investment		$ 10,000
Option to purchase additional equity, term		1 year
Option to purchase additional equity, amount		$ 40,000
Carrying amount of equity method investments			$ 7,000								$ 7,000
Gross income associated with investment											600
Other income, net											400
5 Arches, LLC | Subsequent Event
Investment [Line Items]
Payments to acquire equity method investment	$ 40,000
Option to purchase additional equity, percent	80.00%
Equity method investment, period for contingent consideration	2 years
5 Arches, LLC, Purchase Option
Investment [Line Items]
Carrying amount of equity method investments			4,000								4,000
MSRs
Investment [Line Items]
Servicing asset, fair value			60,281				63,598				60,281	63,598	$ 118,526		$ 191,976
Servicing asset			4,930,000				5,560,000				4,930,000	5,560,000
Servicer advance financing
Investment [Line Items]
Collateral amounts			287,000								287,000
Interest income			1,000
Investment fair value changes, net			(1,000)
Residential Loans
Investment [Line Items]
Servicing asset, fair value			300,468				0				300,468	0
Servicing asset, unpaid principal balance on underlying loan			8,050,000								8,050,000
Excess MSRs
Investment [Line Items]
Servicing asset, fair value			27,312				$ 0				$ 27,312	$ 0
Interest income			1,000
Investment fair value changes, net			$ 2,000

Other Investments - Servicing A

Other Investments - Servicing Advance Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Investment [Line Items]
Total Servicer Advance Receivables	$ 300,000
Residential Loans
Investment [Line Items]
Principal and interest advances	144,336	$ 0
Escrow advances (taxes and insurance advances)	94,828	0
Corporate advances	47,614	0
Total Servicer Advance Receivables	$ 286,778	$ 0

Other Investments - Mortgage Se

Other Investments - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Servicing Asset at Fair Value, Amount [Roll Forward]
Additions	$ 328	$ 7,387	$ 10,060
Balance at End of Period	300,000
Servicing income	15,372	21,120	41,152
Cost of sub-servicer	(1,444)	(2,828)	(6,281)
Net servicing fee income	13,928	18,292	34,871
Market valuation changes of MSRs	(2,508)	(10,166)	(36,372)
Market valuation changes of associated derivatives	(4,734)	(568)	15,584
MSR reversal of provision for repurchases	390	302	270
MSR Income (Loss), Net	7,076	7,860	14,353
Mortgage servicing rights
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance at beginning of period	63,598	118,526	191,976
Additions	328	8,026	25,362
Sales	(1,077)	(52,788)	(62,440)
Changes in fair value due to: Changes in assumptions	4,434	(1,088)	(14,512)
Changes in fair value due to: Other changes	(7,002)	(9,078)	(21,860)
Balance at End of Period	$ 60,281	$ 63,598	$ 118,526

Derivative Financial Instrume_3

Derivative Financial Instruments - Aggregate Fair Value and Notional Amount of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Derivative [Line Items]
Fair Value	$ (49,066)	$ (47,363)
Notional Amount	5,911,385	6,644,081
Derivative Liabilities
Derivative [Line Items]
Fair Value	(84,855)	(63,081)
Notional Amount	2,953,724	3,485,466
Derivative Assets
Derivative [Line Items]
Fair Value	35,789	15,718
Notional Amount	2,957,661	3,158,615
Interest rate agreements | Derivative Liabilities
Derivative [Line Items]
Fair Value	(36,416)	(11,888)
Notional Amount	1,742,000	1,248,000
Interest rate agreements | Derivative Liabilities | Cash Flow Hedging
Derivative [Line Items]
Fair Value	(34,492)	(43,679)
Notional Amount	139,500	139,500
Interest rate agreements | Derivative Assets
Derivative [Line Items]
Fair Value	28,211	10,122
Notional Amount	2,106,500	1,765,000
TBAs
Derivative [Line Items]
Notional Amount	1,460,000	1,700,000
TBAs | Derivative Liabilities
Derivative [Line Items]
Fair Value	(13,215)	(3,808)
Notional Amount	935,000	1,400,000
TBAs | Derivative Assets
Derivative [Line Items]
Fair Value	4,665	133
Notional Amount	520,000	295,000
Futures
Derivative [Line Items]
Notional Amount		8,000
Futures | Derivative Assets
Derivative [Line Items]
Fair Value	0	1
Notional Amount	0	7,500
Swaptions | Derivative Assets
Derivative [Line Items]
Fair Value	0	42
Notional Amount	0	200,000
Loan purchase commitments | Derivative Liabilities
Derivative [Line Items]
Fair Value	(732)	(3,706)
Notional Amount	137,224	697,966
Loan purchase commitments | Derivative Assets
Derivative [Line Items]
Fair Value	2,913	3,243
Notional Amount	331,161	547,434
Loan forward sale commitments | Derivative Assets
Derivative [Line Items]
Fair Value	0	2,177
Notional Amount	$ 0	$ 343,681

Derivative Financial Instrume_4

Derivative Financial Instruments - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)counterparty	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Derivative [Line Items]
Notional Amount	$ 5,911,385	$ 6,644,081
Net unrealized gain on interest rate agreements	8,908	1,022	$ 3,271
Stockholders' equity attributable to parent	$ 1,348,794	1,212,287	1,149,428	$ 1,146,265
Number of counterparties | counterparty	2
Net Unrealized Losses on Interest Rate Agreements Accounted for as Cash Flow Hedges
Derivative [Line Items]
Stockholders' equity attributable to parent	$ (34,045)	(42,953)	(44,020)
Derivative Liabilities
Derivative [Line Items]
Notional Amount	2,953,724	3,485,466
Mortgage Banking Activities, Net
Derivative [Line Items]
Changes in fair value of assets	57,000	51,844	36,445
Loan purchase commitments | Mortgage Banking Activities, Net
Derivative [Line Items]
Changes in fair value of assets	(1,336)	37,880	25,613
Interest Rate Contract
Derivative [Line Items]
Notional Amount	3,850,000	3,210,000
TBAs
Derivative [Line Items]
Notional Amount	1,460,000	1,700,000
TBAs | Derivative Liabilities
Derivative [Line Items]
Notional Amount	935,000	1,400,000
Futures
Derivative [Line Items]
Notional Amount		8,000
Residential and Commercial Loans
Derivative [Line Items]
Valuation adjustments on derivatives	40,000	(31,000)	$ 10,000
Interest rate agreements | Cash Flow Hedging
Derivative [Line Items]
Net unrealized gain on interest rate agreements	9,000	1,000
Interest rate agreements | Derivative Liabilities
Derivative [Line Items]
Notional Amount	1,742,000	1,248,000
Interest rate agreements | Derivative Liabilities | Cash Flow Hedging
Derivative [Line Items]
Notional Amount	$ 139,500	$ 139,500

Derivative Financial Instrume_5

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, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Total interest expense	$ (84,961)	$ (64,351)	$ (48,213)	$ (41,514)	$ (36,108)	$ (27,443)	$ (24,234)	$ (21,031)	$ (239,039)	$ (108,816)	$ (88,528)
Cash Flow Hedging | Interest Rate Contract
Derivative [Line Items]
Net interest expense on cash flows hedges									(3,228)	(4,602)	(5,317)
Realized net losses reclassified from other comprehensive income									0	(45)	(72)
Total interest expense									$ (3,228)	$ (4,647)	$ (5,389)

Other Assets and Liabilities -

Other Assets and Liabilities - Summary of Other Assets (Details) - USD ($) $ in Thousands		Dec. 31, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Margin receivable		$ 100,773	$ 85,044
FHLBC stock		43,393	43,393
Pledged collateral		42,433	42,615
Investment receivable		6,959	1,147
Fixed assets and leasehold improvements		5,106	2,645
REO		3,943	3,354
Other		15,218	16,768
Total Other Assets	[1]	217,825	$ 194,966
Fixed assets basis		10,000
Fixed assets, accumulated depreciation		$ 5,000
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2018 and December 31, 2017, assets of consolidated VIEs totaled $6,331,191 and $1,259,774, respectively. At December 31, 2018 and December 31, 2017, liabilities of consolidated VIEs totaled $5,709,807 and $1,167,157, respectively. See Note 4 for further discussion.

Other Assets and Liabilities _2

Other Assets and Liabilities - Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Accrued compensation	$ 19,769	$ 24,025
Guarantee obligations	16,711	19,487
Payable to minority partner	14,331	0
Deferred tax liabilities	9,022	11,764
Residential loan and MSR repurchase reserve	4,189	4,916
Legal reserve	2,000	2,000
Unsettled trades	1,494	13
Margin payable	835	390
Accrued taxes payable	423	0
Other	9,945	5,134
Total Accrued Expenses and Other Liabilities	$ 78,719	$ 67,729

Other Assets and Liabilities _3

Other Assets and Liabilities - Additional Information (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2018USD ($)property	Dec. 31, 2018USD ($)property	Dec. 31, 2017USD ($)property
Other Assets and Other Liabilities [Line Items]
Investment receivable, real estate securities sales	$ 5,000	$ 5,000
Real estate owned (REO)	3,943	3,943	$ 3,354
Amount related to transfers into REO		4,000
REO liquidations		4,000
Unrealized gain on REO from market value adjustments		500
Payable to minority partner	14,331	$ 14,331	$ 0
Co-investors losses (less than)	$ 100
Legacy Sequoia
Other Assets and Other Liabilities [Line Items]
Number of REO properties recorded on balance sheet | property	13	13	14

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, 2018USD ($)Facility	Dec. 31, 2017USD ($)Facility
Short-term Debt [Line Items]
Outstanding Balance	[1],[2]	$ 2,400,279,000	$ 1,938,682,000
Line of Credit
Short-term Debt [Line Items]
Number of Facilities | Facility		17	13
Outstanding Balance		$ 1,937,920,000	$ 1,688,412,000
Line of Credit | Residential loan warehouse
Short-term Debt [Line Items]
Number of Facilities | Facility		4	4
Outstanding Balance		$ 860,650,000	$ 1,039,666,000
Limit		$ 1,425,000,000	$ 1,575,000,000
Weighted Average Interest Rate		4.10%	3.17%
Weighted Average Days Until Maturity		178 days	197 days
Line of Credit | Real estate securities repo
Short-term Debt [Line Items]
Number of Facilities | Facility		9	9
Outstanding Balance		$ 988,890,000	$ 648,746,000
Limit		$ 0	$ 0
Weighted Average Interest Rate		3.47%	2.69%
Weighted Average Days Until Maturity		26 days	28 days
Line of Credit | Single-family rental loan warehouse
Short-term Debt [Line Items]
Number of Facilities | Facility		2
Outstanding Balance		$ 22,053,000
Limit		$ 400,000,000
Weighted Average Interest Rate		4.77%
Weighted Average Days Until Maturity		560 days
Line of Credit | Residential bridge loan warehouse
Short-term Debt [Line Items]
Number of Facilities | Facility		2
Outstanding Balance		$ 66,327,000
Limit		$ 80,000,000
Weighted Average Interest Rate		5.20%
Weighted Average Days Until Maturity		629 days
Servicer advance financing
Short-term Debt [Line Items]
Number of Facilities | Facility		1
Outstanding Balance		$ 262,740,000
Limit		$ 350,000,000
Weighted Average Interest Rate		4.32%
Weighted Average Days Until Maturity		333 days
Convertible notes, net
Short-term Debt [Line Items]
Outstanding Balance		$ 199,619,000	$ 250,270,000
Limit		$ 0	$ 0
Weighted Average Interest Rate		5.63%	4.63%
Weighted Average Days Until Maturity		319 days	105 days
[1]	Includes $201 million and $250 million of convertible notes at December 31, 2018 and 2017, respectively, 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 each of the dates presented. See Note 13 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, 2018 and December 31, 2017, assets of consolidated VIEs totaled $6,331,191 and $1,259,774, respectively. At December 31, 2018 and December 31, 2017, liabilities of consolidated VIEs totaled $5,709,807 and $1,167,157, respectively. See Note 4 for further discussion.

Short-Term Debt - Additional In

Short-Term Debt - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Apr. 30, 2018	Jun. 30, 2017	Dec. 31, 2016	Nov. 30, 2014	Mar. 31, 2013
Short-term Debt [Line Items]
Trading securities pledged as collateral	$ 747,000,000
Average balance of short-term debt	1,600,000,000	$ 1,080,000,000
Accrued interest payable on short-term debt	4,000,000	2,000,000
Convertible notes	201,000,000	250,000,000
Committed line of credit	10,000,000
Collateral at fair value	4,000,000
Committed line of credit with financial institutions, outstanding	0	0
Convertible senior notes due 2018 | Convertible notes
Short-term Debt [Line Items]
Convertible notes		288,000,000					$ 288,000,000
Debt instrument interest rate				4.625%			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)
Convertible notes			$ 250,000,000
Exchangeable senior notes due 2019 | Convertible notes
Short-term Debt [Line Items]
Accrued interest payable on short-term debt	1,000,000
Convertible notes	201,000,000					$ 205,000,000
Debt instrument interest rate						5.625%
Deferred debt issuance costs	1,000,000
Repurchased debt instrument, face amount					$ 4,000,000
Residential loans
Short-term Debt [Line Items]
Loan pledged as collateral		1,150,000,000
Residential
Short-term Debt [Line Items]
AFS securities pledged as collateral	844,000,000	$ 788,000,000
Single-family rental loans, held-for-sale at fair value
Short-term Debt [Line Items]
Collateral amounts	28,000,000
Residential bridge loans held-for-investment
Short-term Debt [Line Items]
Collateral amounts	98,000,000
Residential Loans
Short-term Debt [Line Items]
Loan pledged as collateral	935,000,000
Servicer advance financing
Short-term Debt [Line Items]
Collateral amounts	287,000,000
Accrued interest payable on short-term debt	1,000,000
Unamortized capitalized commitment costs	3,000,000
Sequoia Choice | Sequoia Securities
Short-term Debt [Line Items]
Trading securities pledged as collateral	130,000,000
Freddie Mac SLST | Sequoia Securities
Short-term Debt [Line Items]
Trading securities pledged as collateral	229,000,000
Freddie Mac K-Series | Sequoia Securities
Short-term Debt [Line Items]
Trading securities pledged as collateral	$ 18,000,000

Short-Term Debt - Remaining Mat

Short-Term Debt - Remaining Maturities of Short Term Debt (Details) - USD ($) $ in Thousands		Dec. 31, 2018	Dec. 31, 2017
Short-term Debt [Line Items]
Short-term debt	[1],[2]	$ 2,400,279	$ 1,938,682
Within 30 days
Short-term Debt [Line Items]
Short-term debt		764,052
31 to 90 days
Short-term Debt [Line Items]
Short-term debt		683,793
Over 90 days
Short-term Debt [Line Items]
Short-term debt		952,434
Line of Credit
Short-term Debt [Line Items]
Short-term debt		1,937,920	1,688,412
Line of Credit | Held-for sale residential loans
Short-term Debt [Line Items]
Short-term debt		860,650	1,039,666
Line of Credit | Real estate securities
Short-term Debt [Line Items]
Short-term debt		988,890	648,746
Line of Credit | Single-family rental loan warehouse
Short-term Debt [Line Items]
Short-term debt		22,053
Line of Credit | Residential bridge loan warehouse
Short-term Debt [Line Items]
Short-term debt		66,327
Line of Credit | Within 30 days
Short-term Debt [Line Items]
Short-term debt		764,052
Line of Credit | Within 30 days | Held-for sale residential loans
Short-term Debt [Line Items]
Short-term debt		0
Line of Credit | Within 30 days | Real estate securities
Short-term Debt [Line Items]
Short-term debt		764,052
Line of Credit | Within 30 days | Single-family rental loan warehouse
Short-term Debt [Line Items]
Short-term debt		0
Line of Credit | Within 30 days | Residential bridge loan warehouse
Short-term Debt [Line Items]
Short-term debt		0
Line of Credit | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		683,793
Line of Credit | 31 to 90 days | Held-for sale residential loans
Short-term Debt [Line Items]
Short-term debt		458,955
Line of Credit | 31 to 90 days | Real estate securities
Short-term Debt [Line Items]
Short-term debt		224,838
Line of Credit | 31 to 90 days | Single-family rental loan warehouse
Short-term Debt [Line Items]
Short-term debt		0
Line of Credit | 31 to 90 days | Residential bridge loan warehouse
Short-term Debt [Line Items]
Short-term debt		0
Line of Credit | Over 90 days
Short-term Debt [Line Items]
Short-term debt		490,075
Line of Credit | Over 90 days | Held-for sale residential loans
Short-term Debt [Line Items]
Short-term debt		401,695
Line of Credit | Over 90 days | Real estate securities
Short-term Debt [Line Items]
Short-term debt		0
Line of Credit | Over 90 days | Single-family rental loan warehouse
Short-term Debt [Line Items]
Short-term debt		22,053
Line of Credit | Over 90 days | Residential bridge loan warehouse
Short-term Debt [Line Items]
Short-term debt		66,327
Servicer advance financing
Short-term Debt [Line Items]
Short-term debt		262,740
Servicer advance financing | Within 30 days
Short-term Debt [Line Items]
Short-term debt		0
Servicer advance financing | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		0
Servicer advance financing | Over 90 days
Short-term Debt [Line Items]
Short-term debt		262,740
Convertible notes, net
Short-term Debt [Line Items]
Short-term debt		199,619	$ 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		$ 199,619
[1]	Includes $201 million and $250 million of convertible notes at December 31, 2018 and 2017, respectively, 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 each of the dates presented. See Note 13 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, 2018 and December 31, 2017, assets of consolidated VIEs totaled $6,331,191 and $1,259,774, respectively. At December 31, 2018 and December 31, 2017, liabilities of consolidated VIEs totaled $5,709,807 and $1,167,157, respectively. See Note 4 for further discussion.

Asset-Backed Securities Issue_2

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, 2018USD ($)series	Dec. 31, 2017USD ($)series
Debt Instrument [Line Items]
Total FHLBC Borrowings	[1]	$ 2,572,158	$ 2,575,023
Asset-backed securities issued
Debt Instrument [Line Items]
Market valuation adjustments		(58,290)	(62,864)
Total FHLBC Borrowings		5,410,073	1,164,585
Asset-backed securities issued | Certificates with principal balance
Debt Instrument [Line Items]
Long-term debt, gross		5,309,564	1,217,782
Asset-backed securities issued | Interest-only certificates
Debt Instrument [Line Items]
Long-term debt, gross		158,799	9,667
Asset-backed securities issued | Legacy Sequoia
Debt Instrument [Line Items]
Market valuation adjustments		(29,753)	(70,652)
Total FHLBC Borrowings		$ 512,240	$ 622,445
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		1.36%	1.46%
Asset-backed securities issued | Legacy Sequoia | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series		3.60%	2.78%
Asset-backed securities issued | Legacy Sequoia | Certificates with principal balance
Debt Instrument [Line Items]
Long-term debt, gross		$ 540,456	$ 691,125
Asset-backed securities issued | Legacy Sequoia | Interest-only certificates
Debt Instrument [Line Items]
Long-term debt, gross		1,537	1,972
Asset-backed securities issued | Sequoia Choice
Debt Instrument [Line Items]
Market valuation adjustments		20,590	7,788
Total FHLBC Borrowings		$ 1,885,010	$ 542,140
Number of series | series		6	2
Asset-backed securities issued | Sequoia Choice | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series		4.46%	4.52%
Asset-backed securities issued | Sequoia Choice | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series		4.97%	4.73%
Asset-backed securities issued | Sequoia Choice | Certificates with principal balance
Debt Instrument [Line Items]
Long-term debt, gross		$ 1,838,758	$ 526,657
Asset-backed securities issued | Sequoia Choice | Interest-only certificates
Debt Instrument [Line Items]
Long-term debt, gross		25,662	7,695
Asset-backed securities issued | Freddie Mac SLST
Debt Instrument [Line Items]
Market valuation adjustments		89	0
Total FHLBC Borrowings		$ 993,748	$ 0
Range of weighted average interest rates, by series		3.51%
Number of series | series		1	0
Asset-backed securities issued | Freddie Mac SLST | Certificates with principal balance
Debt Instrument [Line Items]
Long-term debt, gross		$ 993,659	$ 0
Asset-backed securities issued | Freddie Mac SLST | Interest-only certificates
Debt Instrument [Line Items]
Long-term debt, gross		0	0
Asset-backed securities issued | Freddie Mac K-Series
Debt Instrument [Line Items]
Market valuation adjustments		(49,216)	0
Total FHLBC Borrowings		$ 2,019,075	$ 0
Number of series | series		3	0
Asset-backed securities issued | Freddie Mac K-Series | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series		3.39%
Asset-backed securities issued | Freddie Mac K-Series | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series		4.08%
Asset-backed securities issued | Freddie Mac K-Series | Certificates with principal balance
Debt Instrument [Line Items]
Long-term debt, gross		$ 1,936,691	$ 0
Asset-backed securities issued | Freddie Mac K-Series | Interest-only certificates
Debt Instrument [Line Items]
Long-term debt, gross		$ 131,600	$ 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, 2018 and December 31, 2017, assets of consolidated VIEs totaled $6,331,191 and $1,259,774, respectively. At December 31, 2018 and December 31, 2017, liabilities of consolidated VIEs totaled $5,709,807 and $1,167,157, respectively. See Note 4 for further discussion.

Asset-Backed Securities Issue_3

Asset-Backed Securities Issued - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	$ 16,897	$ 2,568
Freddie Mac SLST
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	2,907	0
Freddie Mac K-Series
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	6,239	0
Asset-backed securities issued | Legacy Sequoia
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	571	537
Asset-backed securities issued | Sequoia Choice
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	$ 7,180	$ 2,031
Contractual maturities of over five years | Asset-backed securities issued
Debt Instrument [Line Items]
Contractual maturities of ABS (in years)	5 years

Asset-Backed Securities Issue_4

Asset-Backed Securities Issued - Summary of Carrying Value Components of Collateral for Asset-Backed Securities Issued and Outstanding (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	$ 5,992,049	$ 1,259,774
Residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	3,822,009	1,252,879
Multifamily loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	2,144,598
Restricted cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	1,168	151
Accrued interest receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	20,331	3,391
REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	3,943	3,353
Legacy Sequoia
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	524,869	637,184
Legacy Sequoia | Residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	519,958	632,817
Legacy Sequoia | Multifamily loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0
Legacy Sequoia | Restricted cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	146	147
Legacy Sequoia | Accrued interest receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	822	867
Legacy Sequoia | REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	3,943	3,353
Sequoia Choice
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	2,089,392	622,590
Sequoia Choice | Residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	2,079,382	620,062
Sequoia Choice | Multifamily loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0
Sequoia Choice | Restricted cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	1,022	4
Sequoia Choice | Accrued interest receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	8,988	2,524
Sequoia Choice | REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	0
Freddie Mac SLST
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	1,226,595	0
Freddie Mac SLST | Residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	1,222,669	0
Freddie Mac SLST | Multifamily loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0
Freddie Mac SLST | Restricted cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	0
Freddie Mac SLST | Accrued interest receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	3,926	0
Freddie Mac SLST | REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	0
Freddie Mac K-Series
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	2,151,193	0
Freddie Mac K-Series | Residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	0
Freddie Mac K-Series | Multifamily loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	2,144,598
Freddie Mac K-Series | Restricted cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	0
Freddie Mac K-Series | Accrued interest receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	6,595	0
Freddie Mac K-Series | 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)

1 Months Ended

12 Months Ended

Jun. 30, 2018USD ($)$ / shares

Aug. 31, 2017USD ($)$ / shares

Nov. 30, 2014USD ($)$ / shares

Jul. 31, 2014

Mar. 31, 2013USD ($)

Dec. 31, 2018USD ($)

Dec. 31, 2017USD ($)

Dec. 31, 2016USD ($)

Sep. 30, 2018$ / shares

Apr. 30, 2018USD ($)

Jun. 30, 2017

Debt Instrument [Line Items]

FHLB transition period

5 years

Committed line of credit with financial institutions, outstanding

$ 0

$ 0

Federal home loan bank stock

43,393,000

43,393,000

Accrued interest payable

4,000,000

2,000,000

Convertible notes

201,000,000

250,000,000

Notional Amount

5,911,385,000

6,644,081,000

Accrued interest payable (less than)

[1]

42,528,000

18,435,000

Convertible notes | Senior Notes Due 2024

Debt Instrument [Line Items]

Convertible notes

$ 200,000,000

$ 200,000,000

Debt instrument interest rate

5.625%

Percent of par at issuance

99.50%

Net proceeds from issuance of convertible debt

$ 194,000,000

Interest expense yield

6.20%

Convertible debt, conversion ratio

0.0547645

Convertible senior notes conversion per share (in dollars per share) | $ / shares

$ 18.26

Accrued interest payable

$ 6,000,000

Unamortized deferred issuance costs

(5,000,000)

Debt Instrument, Unamortized Discount

1,000,000

Convertible notes | Senior Notes Due 2023

Debt Instrument [Line Items]

Convertible notes

$ 245,000,000

245,000,000

Debt instrument interest rate

4.75%

Net proceeds from issuance of convertible debt

$ 238,000,000

Interest expense yield

5.30%

Convertible debt, conversion ratio

0.0539060

Convertible senior notes conversion per share (in dollars per share) | $ / shares

$ 18.55

Accrued interest payable

4,000,000

Unamortized deferred issuance costs

(6,000,000)

Debt instrument, maturity year

2,023

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%

Net proceeds from issuance of convertible debt

$ 198,000,000

Interest expense yield

6.30%

Convertible debt, conversion ratio

0.0462370

Convertible senior notes conversion per share (in dollars per share) | $ / shares

$ 21.63

Accrued interest payable

1,000,000

Unamortized deferred issuance costs

(1,000,000)

Debt instrument, maturity year

2,019

Debt instrument, redemption date

Nov. 15, 2019

Repurchased debt instrument, face amount

$ 4,000,000

Deferred debt issuance costs

1,000,000

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%

4.625%

Net proceeds from issuance of convertible debt

$ 279,000,000

Interest expense yield

4.80%

Convertible debt, conversion ratio

0.0411320

Convertible senior notes conversion per share (in dollars per share) | $ / shares

$ 24.31

Repurchased debt instrument, face amount

37,000,000

Gain (loss) on extinguishment of debt

(1,000,000)

Convertible notes

$ 250,000,000

Deferred debt issuance costs

$ 2,000,000

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 | Subsidiaries

Debt Instrument [Line Items]

Additional borrowings from FHLB

$ 0

FHLB Chicago | FHLB Subsidiary

Debt Instrument [Line Items]

Maximum borrowing capacity

2,000,000,000

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

2.52%

1.38%

Weighted average maturity (in years)

7 years

8 years

FHLB Chicago | Redwood Trust Inc. | Residential Real Estate | Held-for sale residential loans

Debt Instrument [Line Items]

Residential mortgage loans securing FHLB advances

$ 2,380,000,000

[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, 2018 and December 31, 2017, assets of consolidated VIEs totaled $6,331,191 and $1,259,774, respectively. At December 31, 2018 and December 31, 2017, liabilities of consolidated VIEs totaled $5,709,807 and $1,167,157, respectively. See Note 4 for further discussion.

Long-Term Debt - Debt maturitie

Long-Term Debt - Debt maturities (Details) - USD ($) $ in Thousands		Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total FHLBC Borrowings	[1]	$ 2,572,158	$ 2,575,023
FHLB Chicago | Subsidiaries
Debt Instrument [Line Items]
Total FHLBC Borrowings		1,999,999
FHLB Subsidiary | FHLB Chicago
Debt Instrument [Line Items]
2,024		470,171
2,025		887,639
2,026		$ 642,189
[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, 2018 and December 31, 2017, assets of consolidated VIEs totaled $6,331,191 and $1,259,774, respectively. At December 31, 2018 and December 31, 2017, liabilities of consolidated VIEs totaled $5,709,807 and $1,167,157, respectively. See Note 4 for further discussion.

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)	Jul. 15, 2010Plaintiff	Dec. 31, 2018USD ($)lease	Dec. 31, 2018USD ($)loanleasecertificaterepurchase_request	Dec. 31, 2017USD ($)loanrepurchase_request	Dec. 31, 2016USD ($)loan	Dec. 31, 2007certificate	Dec. 31, 2004certificate	Dec. 31, 2007certificate	Feb. 28, 2019USD ($)	Dec. 31, 2015USD ($)	Dec. 23, 2009
Loss Contingencies [Line Items]
Number of non-cancelable leases | lease		4	4
Lease expiration year			2,028
Future lease commitments with expiration date		$ 15,659,000	$ 15,659,000
Operating lease expense			2,000,000	$ 2,000,000	$ 3,000,000
Unamortized leasehold improvements		3,000,000	3,000,000
Leasehold amortization expense (less than)			200,000	200,000	$ 200,000
Commitment to fund partnership		36,000,000	57,000,000
Commitment to fund partnership, funded amount		36,000,000	36,000,000
Loan held-for-investment, amount		39,703,000	39,703,000	0
Long term commitment, additional liability		22,000,000	22,000,000
Principal amount outstanding on loans securitized		1,034,434,000	1,034,434,000	1,409,179,000
Guarantee obligations		16,711,000	16,711,000	19,487,000
Guarantee obligation, credit reserve		5,000,000	5,000,000
SPE, assets		47,000,000	47,000,000	48,000,000
SPE, liabilities		17,000,000	17,000,000	19,000,000
Residential loan and MSR repurchase reserve		4,189,000	$ 4,189,000	$ 4,916,000
Residential loans repurchase requests | repurchase_request			11	17
Residential loans, number of loans repurchased | loan			2	1	1
Residential loans repurchase provision (reversal)			$ (700,000)	$ (300,000)	$ (1,000,000)
Residential loans repurchased during period			0	(200,000)	(100,000)
Aggregate amount of loss contingency reserves		2,000,000	$ 2,000,000	2,000,000
Morgan Stanley and Company
Loss Contingencies [Line Items]
Number of mortgage pass through certificates issued | certificate			28
Sequoia Residential Funding
Loss Contingencies [Line Items]
Number of mortgage pass through certificates issued | certificate						2	2	4
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		1,034,000,000	$ 1,034,000,000	1,410,000,000
Loans held as assets amount in foreclosure		1,000,000	1,000,000
Other Income
Loss Contingencies [Line Items]
Fee income from risk sharing agreement			4,000,000	3,000,000	5,000,000
Mortgage Banking And Investment Activities
Loss Contingencies [Line Items]
Market valuation changes in fair value of guarantee asset			(400,000)	$ (1,000,000)	(1,000,000)
Guarantee Obligations
Loss Contingencies [Line Items]
Original principal balance of loans sold subject to risk sharing agreement					$ 3,190,000,000					$ 3,190,000,000
Potential future payments on risk sharing agreements		44,000,000	44,000,000
Principal amount outstanding on loans securitized		$ 1,840,000,000	$ 1,840,000,000
FICO credit score		759	759
Loan to value ratio		76.00%	76.00%
Guarantee Obligations | Financing Receivables, Equal to Greater than 90 Days Past Due
Loss Contingencies [Line Items]
Loans past due		$ 7,000,000	$ 7,000,000
Residential | Sequoia Entities | FHLB Seattle
Loss Contingencies [Line Items]
Statutory interest rate per annum											8.00%
Original principal amount of securities		133,000,000	133,000,000
Debt instrument principal payment amount			126,000,000
Debt instrument interest payment amount			12,000,000
Residential | Sequoia Entities | Schwab
Loss Contingencies [Line Items]
Original principal amount of securities		15,000,000	15,000,000
Principal balance of securities		14,000,000	14,000,000
Debt instrument interest amount		$ 1,000,000	$ 1,000,000
Subsequent Event
Loss Contingencies [Line Items]
Commitment to fund partnership, funded amount									$ 7,000,000

Commitments and Contingencies_2

Commitments and Contingencies - Future Lease Commitments (Details) $ in Thousands	Dec. 31, 2018USD ($)
Leases [Abstract]
2,019	$ 2,002
2,020	1,966
2,021	1,474
2022 and thereafter	10,217
Total Lease Commitments	$ 15,659

Equity - Changes to Accumulated

Equity - Changes to Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	$ 1,212,287	$ 1,149,428
Balance at End of Period	1,348,794	1,212,287
Other comprehensive income (loss). before reclassification adjustments, tax benefit (provision)	2,000
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	128,201	115,873
Other comprehensive income (loss) before reclassifications	(7,298)	22,864
Amounts reclassified from other accumulated comprehensive income	(25,561)	(10,536)
Net current-period other comprehensive income (loss)	(32,859)	12,328
Balance at End of Period	95,342	128,201
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	(42,953)	(44,020)
Other comprehensive income (loss) before reclassifications	8,908	1,022
Amounts reclassified from other accumulated comprehensive income	0	45
Net current-period other comprehensive income (loss)	8,908	1,067
Balance at End of Period	$ (34,045)	$ (42,953)

Equity - Reclassifications out

Equity - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investment fair value changes, net									$ 25,689	$ (10,374)	$ 28,574
Realized gains, net									(27,041)	(13,355)	(28,009)
Provision for income taxes									11,088	11,752	3,708
Interest expense	$ 84,961	$ 64,351	$ 48,213	$ 41,514	$ 36,108	$ 27,443	$ 24,234	$ 21,031	239,039	108,816	88,528
Net income before provision for income taxes									(130,688)	(152,158)	$ (134,960)
Other than temporary impairments									1,000	1,000
Other than temporary impairment losses, income statement									100	1,000
Accumulated other comprehensive income, other-than-temporary impairments									1,000	400
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									89	1,012
Realized gains, net									(27,178)	(11,548)
Provision for income taxes									1,528	0
Net income before provision for income taxes									(25,561)	(10,536)
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									0	45
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									$ 0	$ 45

Equity - Additional Information

Equity - Additional Information (Details) - USD ($)	1 Months Ended		3 Months Ended	12 Months Ended
	Feb. 28, 2018	Jan. 31, 2018	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Feb. 29, 2016
Stockholders Equity Note [Line Items]
Net proceeds from issuance of common stock				$ 142,601,000	$ 302,000	$ 304,000
Share repurchases				15,544,000	$ 9,187,000	$ 25,107,000
Share Repurchase Plan, February 2016
Stockholders Equity Note [Line Items]
Stock repurchase program, authorized amount							$ 100,000,000
Share repurchased during period (in shares)		1,040,829			610,342
Share repurchases		$ 16,000,000			$ 9,000,000
Stock repurchase program, remaining authorized repurchase amount					$ 77,000,000
Share Repurchase Plan, February 2018
Stockholders Equity Note [Line Items]
Stock repurchase program, authorized amount	$ 100,000,000
Stock repurchase program, remaining authorized repurchase amount			$ 100,000,000	$ 100,000,000
Increase in authorized repurchase amount	$ 39,000,000
Convertible debt securities
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share				0	0	0
Equity awards
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share				7,230	5,843	0
Common Stock
Stockholders Equity Note [Line Items]
Issuance of common stock (in shares)				7,187,500
Net proceeds from issuance of common stock				$ 117,000,000
Common Stock | ATM Offerings
Stockholders Equity Note [Line Items]
Issuance of common stock (in shares)			1,550,819
Net proceeds from issuance of common stock			$ 25,000,000
Aggregate value of common stock issuable			150,000,000	150,000,000
Outstanding for future offerings, amount			$ 125,000,000	$ 125,000,000

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, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Earnings Per Share [Abstract]
Net income attributable to Redwood	$ (913)	$ 40,921	$ 32,747	$ 46,845	$ 30,933	$ 36,180	$ 36,324	$ 36,969	$ 119,600	$ 140,406	$ 131,252
Less: Dividends and undistributed earnings allocated to participating securities									(3,754)	(3,632)	(3,742)
Net income allocated to common shareholders									$ 115,846	$ 136,774	$ 127,510
Basic weighted average common shares outstanding (in shares)									78,724,912	76,792,957	76,747,047
Basic earnings per common share (in dollars per share)	$ (0.02)	$ 0.49	$ 0.42	$ 0.60	$ 0.39	$ 0.46	$ 0.46	$ 0.47	$ 1.47	$ 1.78	$ 1.66
Less: Dividends and undistributed earnings allocated to participating securities									$ (4,283)	$ (3,836)	$ (4,035)
Add back: Interest expense on convertible notes for the period, net of tax									32,653	26,898	23,862
Net income allocated to common shareholders									$ 147,970	$ 163,468	$ 151,079
Net effect of dilutive equity awards (in shares)									189,120	185,383	28,435
Net effect of assumed convertible notes conversion to common shares (in shares)									31,113,738	24,996,668	21,133,608
Diluted weighted average common shares outstanding (in shares)									110,027,770	101,975,008	97,909,090
Diluted earnings per common share (in dollars per share)	$ (0.02)	$ 0.42	$ 0.38	$ 0.50	$ 0.35	$ 0.41	$ 0.43	$ 0.43	$ 1.34	$ 1.60	$ 1.54

Equity Compensation Plans - Add

Equity Compensation Plans - Additional Information (Details) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended				12 Months Ended
	Dec. 31, 2018USD ($)$ / sharesshares	May 31, 2018executive$ / sharesshares	May 31, 2014	Dec. 31, 2018USD ($)$ / sharesshares	Jun. 30, 2018shares	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016$ / sharesshares	Dec. 31, 2018USD ($)$ / sharesshares	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016USD ($)tranchemeasurement_period$ / sharesshares	Dec. 31, 2015shares
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)	4,616,776			4,616,776		1,356,438		4,616,776	1,356,438
Number of shares available for grant, increase					4,000,000
Unrecognized compensation cost | $	$ 25,122			$ 25,122		$ 21,470		$ 25,122	$ 21,470
Equity compensation expense | $								$ 12,388	10,141	$ 9,093
Number of shares purchased by employees (in shares)								390,569
Number of additional shares authorized				200,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost | $	4,000			$ 4,000				$ 4,000
Weighted average amortization period remaining for equity awards (in years)								2 years
Equity compensation expense | $								$ 2,000	$ 1,000	$ 1,000
Number of stock awards granted (in shares)								173,413	134,364	144,056
Number of stock awards forfeited (in shares)								7,470	19,444	76,614
Granted (in dollars per share) | $ / shares								$ 14.73	$ 16.52	$ 11.89
Number of stock awards vested (in shares)								83,968	61,928	50,107
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost | $	$ 14,000			$ 14,000				$ 14,000
Equity compensation expense | $								$ 8,000	$ 6,000	$ 9,000
Unvested outstanding stock awards (in units)	1,155,098			1,155,098		988,656		1,155,098	988,656
Weighted-average grant date fair value of stock awards (in dollars per unit) | $ / shares	$ 15.18			$ 15.18		$ 15.20		$ 15.18	$ 15.20
Number of stock awards vested (in units)	1,181,623			1,181,623		889,835		1,181,623	889,835
Number of stock awards granted (in shares)								670,254	565,921	565,061
Number of stock awards forfeited (in shares)								0	31,875	62,894
Granted (in dollars per share) | $ / shares								$ 15.53	$ 16.01	$ 13.33
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost | $	$ 7,000			$ 7,000				$ 7,000
Equity compensation expense | $								$ 3,000	$ 3,000	$ 3,000
Unvested outstanding stock awards (in units)	725,616			725,616		704,270		725,616	704,270
Weighted-average grant date fair value of stock awards (in dollars per unit) | $ / shares	$ 17.05			$ 17.05		$ 13.24	$ 9.46	$ 17.05	$ 13.24	$ 9.46
Number of stock awards granted (in shares)								258,078	273,054	194,484
Number of stock awards forfeited (in shares)								0	0	208,330
Share-based compensation, vesting period (in years)								3 years
TSR performance period (in years)								3 years
Grant date fair value assumptions, dividend rate, risk-free rate, treasury rate measurement period (in years)								3 years
Performance Stock Units | Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock awards granted (in shares)		23,025
Stock price valuation period		60 days
Grant date fair value assumptions, volatility rate		27.00%
Grant date fair value assumptions, risk-free rate		2.71%
Grant date fair value assumptions, dividend yield		0.00%
Granted (in dollars per share) | $ / shares		$ 15.20
Number of executives granted PSUs in connection with promotions | executive		2
Performance Stock Units | Performance Share Units (PSUs), 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock awards granted (in shares)	235,053
Share-based compensation, vesting period (in years)								3 years
Vesting percentage if bvTSR is 25%	100.00%
Relative increase/decrease in vesting percentage based on rTSR	50.00%
Vesting percentage cap if first 2 steps yield a vesting level greater than 100%	100.00%
Grant date fair value (in dollars per share) | $ / shares	$ 17.23
Stock price valuation period	60 days
Grant date fair value assumptions, volatility rate	22.00%
Grant date fair value assumptions, risk-free rate	2.78%
Grant date fair value assumptions, dividend yield	0.00%
Performance Stock Units | Performance Share Units (PSUs), 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, vesting period (in years)									3 years
Stock price valuation period									60 days
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%
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]
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%
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
Performance Stock Units | Performance Share Units (PSUs), 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock awards vested (in shares)						0	0				387,937
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				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), 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	250.00%
First baseline vesting percentage	200.00%
Maximum | Performance Stock Units | Performance Share Units (PSUs), 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), 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	0.00%
First baseline vesting percentage	0.00%
Minimum | Performance Stock Units | Performance Share Units (PSUs), 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) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	$ 21,470
Equity grants	16,152
Equity grant forfeitures	(112)
Equity compensation expense	(12,388)
Unrecognized Compensation Cost at End of Period	25,122
Restricted Stock
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized Compensation Cost at End of Period	4,000
Deferred Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized Compensation Cost at End of Period	14,000
Performance Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized Compensation Cost at End of Period	7,000
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	2,808
Equity grants	2,566
Equity grant forfeitures	(112)
Equity compensation expense	(1,690)
Unrecognized Compensation Cost at End of Period	3,572
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	13,364
Equity grants	9,050
Equity grant forfeitures	0
Equity compensation expense	(7,925)
Unrecognized Compensation Cost at End of Period	14,489
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	5,298
Equity grants	4,400
Equity grant forfeitures	0
Equity compensation expense	(2,637)
Unrecognized Compensation Cost at End of Period	7,061
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	136
Equity grant forfeitures	0
Equity compensation expense	(136)
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, 2018	Dec. 31, 2017	Dec. 31, 2016
Shares
Outstanding at beginning of period (in shares)	257,507	204,515	187,180
Granted (in shares)	173,413	134,364	144,056
Vested (in shares)	(83,968)	(61,928)	(50,107)
Forfeited (in shares)	(7,470)	(19,444)	(76,614)
Balance at End of Period (in shares)	339,482	257,507	204,515
Weighted Average Grant Date Fair Market Value
Outstanding at beginning of period (in dollars per share)	$ 15.23	$ 14.27	$ 18.22
Granted (in dollars per share)	14.73	16.52	11.89
Vested (in dollars per share)	15.46	14.97	17.28
Forfeited (in dollars per share)	15.05	14.78	18.01
Balance at End of Period (in dollars per share)	$ 14.92	$ 15.23	$ 14.27

Equity Compensation Plans - Def

Equity Compensation Plans - Deferred Stock Units Activity (Details) - Deferred Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Units
Outstanding at beginning of period (in shares)	1,878,491	1,848,862	2,407,154
Granted (in shares)	670,254	565,921	565,061
Distributions (in shares)	(212,025)	(504,417)	(1,060,459)
Forfeited (in shares)	0	(31,875)	(62,894)
Balance at End of Period (in shares)	2,336,720	1,878,491	1,848,862
Weighted Average Grant Date Fair Market Value
Outstanding at beginning of period (in dollars per share)	$ 15.92	$ 16.46	$ 16.45
Granted (in dollars per share)	15.53	16.01	13.33
Distributions (in dollars per share)	18.37	18.09	14.64
Forfeited (in dollars per share)	0	14.80	18.66
Balance at End of Period (in dollars per share)	$ 15.58	$ 15.92	$ 16.46

Equity Compensation Plans - Sum

Equity Compensation Plans - Summary of Activity Related to ESPP (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Employee Stock Purchase Plan (ESPP) Activity [Roll Forward]
Balance at beginning of period	$ 4	$ 3	$ 18
Employee purchases	375	305	290
Cost of common stock issued	(373)	(304)	(305)
Balance at End of Period	$ 6	$ 4	$ 3

Equity Compensation Plans - S_2

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, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred Compensation Cash-based Arrangements, Liability, Current and Noncurrent [Roll Forward]
Balance at beginning of period	$ 2,171	$ 2,088	$ 2,095
New deferrals	759	750	558
Accrued interest	82	58	53
Withdrawals	(528)	(725)	(618)
Balance at End of Period	$ 2,484	$ 2,171	$ 2,088

Mortgage Banking Activities (De

Mortgage Banking Activities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income, net	$ 12,874	$ 12,436	$ 20,691
Mortgage Banking Activities, Net	59,566	53,908	38,691
Investment Fair Value Changes, Net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	(25,689)	10,374	(28,574)
Mortgage Banking Activities, Net	59,566	53,908	38,691
Investment Fair Value Changes, Net | Risk management derivatives, net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	9,740	(12,842)	(9,112)
Residential Mortgage Banking Activities, Net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income, net	2,566	2,064	2,203
Mortgage Banking Activities, Net	59,566	53,908	40,753
Residential Mortgage Banking Activities, Net | Residential loans at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	21,808	69,373	31,399
Residential Mortgage Banking Activities, Net | Single-family rental loans, held-for-sale at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	453	0	0
Residential Mortgage Banking Activities, Net | Sequoia securities
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	0	0	1,455
Residential Mortgage Banking Activities, Net | Risk management derivatives, net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of risk management derivatives	34,739	(17,529)	5,696
Commercial Mortgage Banking Activities, Net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Mortgage Banking Activities, Net	$ 0	$ 0	$ (2,062)

Investment Fair Value Changes -

Investment Fair Value Changes - Components of Investment Activities (Details) - Investment Fair Value Changes, Net - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	$ (25,689)	$ 10,374	$ (28,574)
Residential loans held-for-investment, at Redwood
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(29,573)	(5,765)	(23,102)
Residential bridge loans held-for-investment
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(29)	0	0
Trading securities
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(8,055)	39,526	9,666
Servicer advance investments
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(701)	0	0
Excess MSRs
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	1,823	0	0
Net investments in Legacy Sequoia entities
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(1,016)	(8,027)	(4,200)
Net investments in Sequoia Choice entities
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	443	(323)	0
Freddie Mac SLST
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	1,271	0	0
Freddie Mac K-Series
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	931	0	0
Risk-sharing investments
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(434)	(1,484)	(1,151)
Risk management derivatives, net
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	9,740	(12,842)	(9,112)
Commercial Loans
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	0	300	(307)
Impairments on AFS securities
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	$ (89)	$ (1,011)	$ (368)

Operating Expenses - Components

Operating Expenses - Components of Operating Expenses (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other Income and Expenses [Abstract]
Fixed compensation expense									$ 24,445	$ 22,111	$ 24,332
Variable compensation expense									14,589	20,574	16,581
Equity compensation expense									12,388	10,141	9,093
Total compensation expense									51,422	52,826	50,006
Systems and consulting									7,451	7,073	9,037
Loan acquisition costs									7,697	5,022	5,744
Office costs									4,705	4,248	4,550
Accounting and legal									5,529	2,842	3,658
Corporate costs									1,955	1,856	2,106
Other operating expenses									4,023	3,289	3,284
Operating expenses before restructuring charges									82,782	77,156	78,385
Restructuring charges									0	0	10,401
Total Operating Expenses	$ 19,253	$ 21,490	$ 19,009	$ 23,030	$ 20,367	$ 19,922	$ 18,641	$ 18,226	82,782	77,156	88,786
Upfront costs associated with hiring new executive officer										2,000
Restructuring Cost and Reserve [Line Items]
Restructuring charges									$ 0	$ 0	10,401
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, 2018	Dec. 31, 2017
Deferred Tax Assets
Net operating loss carryforward – state	$ 103,858	$ 108,085
Net capital loss carryforward – federal	0	535
Real estate assets	2,400	0
Interest rate agreements	2,320	1,380
Allowances and accruals	1,830	2,044
Other	1,586	1,844
Total Deferred Tax Assets	111,994	113,888
Deferred Tax Liabilities
Real estate assets	0	(562)
Mortgage Servicing Rights	(20,068)	(20,540)
Tax effect of unrealized gains – OCI	0	(1,166)
Total Deferred Tax Liabilities	(20,068)	(22,268)
Valuation allowance	(100,948)	(103,384)
Total Deferred Tax Asset (Liability), net of Valuation Allowance	$ (9,022)	$ (11,764)

Taxes - Additional Information

Taxes - Additional Information (Details)	12 Months Ended
	Dec. 31, 2018USD ($)
Income Taxes [Line Items]
Percentage prohibited transaction tax for not meeting the requirements of statutory relief	100.00%
Federal
Income Taxes [Line Items]
Estimated operating loss carry forwards	$ 39,000,000
NOL carry forwards, expiring year	2,029
NOL carry forwards	$ 0
State and Local Jurisdiction
Income Taxes [Line Items]
NOL carry forwards	$ 1,210,000,000

Taxes - Provision for (Benefit

Taxes - Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current Provision for Income Taxes
Federal	$ 11,387	$ 512	$ 1,477
State	820	361	331
Total Current Provision for Income Taxes	12,207	873	1,808
Deferred Provision for Income Taxes
Federal	(1,419)	10,991	1,910
State	300	(112)	(10)
Total Deferred (Benefit) Provision for Income Taxes	(1,119)	10,879	1,900
Total Provision for Income Taxes	$ 11,088	$ 11,752	$ 3,708

Taxes - Reconciliation of Statu

Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	34.00%	34.00%
State statutory rate, net of Federal tax effect	8.60%	7.20%	7.20%
Differences in taxable (loss) income from GAAP income	(1.70%)	(3.90%)	(1.00%)
Change in valuation allowance	1.90%	(1.00%)	(11.20%)
Dividends paid deduction	(21.30%)	(23.40%)	(26.30%)
Federal statutory rate change	(0.00%)	(5.20%)	(0.00%)
Effective Tax Rate	8.50%	7.70%	2.70%

Segment Information - Additiona

Segment Information - Additional Information (Details)	12 Months Ended
	Dec. 31, 2018Segment
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, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Interest income	$ 119,725	$ 99,397	$ 82,976	$ 76,619	$ 71,468	$ 62,737	$ 59,224	$ 54,628	$ 378,717	$ 248,057	$ 246,355
Interest expense	(84,961)	(64,351)	(48,213)	(41,514)	(36,108)	(27,443)	(24,234)	(21,031)	(239,039)	(108,816)	(88,528)
Net Interest Income	34,764	35,046	34,763	35,105	35,360	35,294	34,990	33,597	139,678	139,241	157,827
Reversal of provision for loan losses									0	0	7,102
Non-interest income
Mortgage banking activities, net									59,566	53,908	38,691
Investment fair value changes, net									(25,689)	10,374	(28,574)
Other income, net									12,874	12,436	20,691
Realized gains, net									27,041	13,355	28,009
Total non-interest income, net	(17,679)	32,284	19,521	39,666	10,951	26,070	25,297	27,755	73,792	90,073	58,817
Direct operating expenses	(19,253)	(21,490)	(19,009)	(23,030)	(20,367)	(19,922)	(18,641)	(18,226)	(82,782)	(77,156)	(88,786)
Benefit from income taxes									(11,088)	(11,752)	(3,708)
Net Income	$ (913)	$ 40,921	$ 32,747	$ 46,845	$ 30,933	$ 36,180	$ 36,324	$ 36,969	119,600	140,406	131,252
Non-cash amortization income (expense), net									12,379	17,462	25,704
Operating Segments | Investment Portfolio
Segment Reporting Information [Line Items]
Interest income									304,636	188,760	192,200
Interest expense									(149,139)	(36,690)	(22,997)
Net Interest Income									155,497	152,070	169,203
Reversal of provision for loan losses											7,102
Non-interest income
Mortgage banking activities, net									0	0	0
Investment fair value changes, net									(24,693)	18,414	(24,367)
Other income, net									12,433	12,436	20,691
Realized gains, net									27,041	14,107	27,717
Total non-interest income, net									14,781	44,957	24,041
Direct operating expenses									(10,357)	(6,028)	(10,421)
Benefit from income taxes									(3,741)	(5,328)	(1,848)
Net Income									156,180	185,671	188,077
Non-cash amortization income (expense), net									16,849	20,974	29,806
Operating Segments | Mortgage Banking
Segment Reporting Information [Line Items]
Interest income									53,054	39,309	33,661
Interest expense									(28,934)	(17,369)	(14,191)
Net Interest Income									24,120	21,940	19,470
Reversal of provision for loan losses											0
Non-interest income
Mortgage banking activities, net									59,566	53,908	40,753
Investment fair value changes, net									0	0	0
Other income, net									0	0	0
Realized gains, net									0	0	0
Total non-interest income, net									59,566	53,908	40,753
Direct operating expenses									(28,172)	(25,113)	(23,252)
Benefit from income taxes									(7,347)	(6,424)	(1,860)
Net Income									48,167	44,311	35,111
Non-cash amortization income (expense), net									(181)	(102)	(130)
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income									21,027	19,988	20,494
Interest expense									(60,966)	(54,757)	(51,340)
Net Interest Income									(39,939)	(34,769)	(30,846)
Reversal of provision for loan losses											0
Non-interest income
Mortgage banking activities, net									0	0	(2,062)
Investment fair value changes, net									(996)	(8,040)	(4,207)
Other income, net									441	0	0
Realized gains, net									0	(752)	292
Total non-interest income, net									(555)	(8,792)	(5,977)
Direct operating expenses									(44,253)	(46,015)	(55,113)
Benefit from income taxes									0	0	0
Net Income									(84,747)	(89,576)	(91,936)
Non-cash amortization income (expense), net									$ (4,289)	$ (3,410)	$ (3,972)

Segment Information - Component

Segment Information - Components of Corporate/Other (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Interest income		$ 119,725	$ 99,397	$ 82,976	$ 76,619	$ 71,468	$ 62,737	$ 59,224	$ 54,628	$ 378,717	$ 248,057	$ 246,355
Interest expense		(84,961)	(64,351)	(48,213)	(41,514)	(36,108)	(27,443)	(24,234)	(21,031)	(239,039)	(108,816)	(88,528)
Net Interest Income		34,764	35,046	34,763	35,105	35,360	35,294	34,990	33,597	139,678	139,241	157,827
Mortgage banking activities, net										59,566	53,908	38,691
Investment fair value changes, net										(25,689)	10,374	(28,574)
Realized gains, net										27,041	13,355	28,009
Total non-interest income, net		(17,679)	32,284	19,521	39,666	10,951	26,070	25,297	27,755	73,792	90,073	58,817
Direct operating expenses		(19,253)	(21,490)	(19,009)	(23,030)	(20,367)	(19,922)	(18,641)	(18,226)	(82,782)	(77,156)	(88,786)
Net Income		(913)	$ 40,921	$ 32,747	$ 46,845	30,933	$ 36,180	$ 36,324	$ 36,969	119,600	140,406	131,252
Real estate securities	[1]	1,452,494				1,476,510				1,452,494	1,476,510
Other investments	[1]	438,518				63,598				438,518	63,598
Total assets	[1]	11,937,406				7,039,822				11,937,406	7,039,822
Residential Loans
Segment Reporting Information [Line Items]
Residential loans		7,254,742				5,115,210				7,254,742	5,115,210
Business purpose residential loans
Segment Reporting Information [Line Items]
Residential loans		141,258								141,258
Multifamily loans
Segment Reporting Information [Line Items]
Residential loans		2,144,598								2,144,598
Operating Segments | Investment Portfolio
Segment Reporting Information [Line Items]
Interest income										304,636	188,760	192,200
Interest expense										(149,139)	(36,690)	(22,997)
Net Interest Income										155,497	152,070	169,203
Mortgage banking activities, net										0	0	0
Investment fair value changes, net										(24,693)	18,414	(24,367)
Realized gains, net										27,041	14,107	27,717
Total non-interest income, net										14,781	44,957	24,041
Direct operating expenses										(10,357)	(6,028)	(10,421)
Net Income										156,180	185,671	188,077
Real estate securities		1,452,494				1,476,510				1,452,494	1,476,510
Other investments		427,764				63,598				427,764	63,598
Total assets		10,093,993				4,743,873				10,093,993	4,743,873
Operating Segments | Investment Portfolio | Residential Loans
Segment Reporting Information [Line Items]
Residential loans		5,685,983				3,054,448				5,685,983	3,054,448
Operating Segments | Investment Portfolio | Business purpose residential loans
Segment Reporting Information [Line Items]
Residential loans		112,798								112,798
Operating Segments | Investment Portfolio | Multifamily loans
Segment Reporting Information [Line Items]
Residential loans		2,144,598								2,144,598
Operating Segments | Mortgage Banking
Segment Reporting Information [Line Items]
Interest income										53,054	39,309	33,661
Interest expense										(28,934)	(17,369)	(14,191)
Net Interest Income										24,120	21,940	19,470
Mortgage banking activities, net										59,566	53,908	40,753
Investment fair value changes, net										0	0	0
Realized gains, net										0	0	0
Total non-interest income, net										59,566	53,908	40,753
Direct operating expenses										(28,172)	(25,113)	(23,252)
Net Income										48,167	44,311	35,111
Real estate securities		0				0				0	0
Other investments		0				0				0	0
Total assets		1,103,090				1,453,069				1,103,090	1,453,069
Operating Segments | Mortgage Banking | Residential Loans
Segment Reporting Information [Line Items]
Residential loans		1,048,801				1,427,945				1,048,801	1,427,945
Operating Segments | Mortgage Banking | Business purpose residential loans
Segment Reporting Information [Line Items]
Residential loans		28,460								28,460
Operating Segments | Mortgage Banking | Multifamily loans
Segment Reporting Information [Line Items]
Residential loans		0								0
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income										21,027	19,988	20,494
Interest expense										(60,966)	(54,757)	(51,340)
Net Interest Income										(39,939)	(34,769)	(30,846)
Mortgage banking activities, net										0	0	(2,062)
Investment fair value changes, net										(996)	(8,040)	(4,207)
Other income, net										441	0	0
Realized gains, net										0	(752)	292
Total non-interest income, net										(555)	(8,792)	(5,977)
Direct operating expenses										(44,253)	(46,015)	(55,113)
Net Income										(84,747)	(89,576)	(91,936)
Real estate securities		0				0				0	0
Other investments		10,754				0				10,754	0
Total assets		740,323				842,880				740,323	842,880
Corporate/ Other | Residential Loans
Segment Reporting Information [Line Items]
Residential loans		519,958				$ 632,817				519,958	632,817
Corporate/ Other | Business purpose residential loans
Segment Reporting Information [Line Items]
Residential loans		0								0
Corporate/ Other | Multifamily loans
Segment Reporting Information [Line Items]
Residential loans		$ 0								0
Corporate/ Other | Legacy Consolidated VIEs
Segment Reporting Information [Line Items]
Interest income										20,036	19,407	19,537
Interest expense										(16,519)	(14,789)	(13,103)
Net Interest Income										3,517	4,618	6,434
Mortgage banking activities, net										0	0	0
Investment fair value changes, net										(1,016)	(8,027)	(4,200)
Other income, net										0	0	0
Realized gains, net										0	0	0
Total non-interest income, net										(1,016)	(8,027)	(4,200)
Direct operating expenses										0	0	0
Net Income										2,501	(3,409)	2,234
Corporate/ Other | Other
Segment Reporting Information [Line Items]
Interest income										991	581	957
Interest expense										(44,447)	(39,968)	(38,237)
Net Interest Income										(43,456)	(39,387)	(37,280)
Mortgage banking activities, net										0	0	(2,062)
Investment fair value changes, net										20	(13)	(7)
Other income, net										441	0	0
Realized gains, net										0	(752)	292
Total non-interest income, net										461	(765)	(1,777)
Direct operating expenses										(44,253)	(46,015)	(55,113)
Net Income										$ (87,248)	$ (86,167)	$ (94,170)
[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, 2018 and December 31, 2017, assets of consolidated VIEs totaled $6,331,191 and $1,259,774, respectively. At December 31, 2018 and December 31, 2017, liabilities of consolidated VIEs totaled $5,709,807 and $1,167,157, respectively. See Note 4 for further discussion.

Quarterly Financial Data - Un_3

Quarterly Financial Data - Unaudited (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating results:
Interest income	$ 119,725	$ 99,397	$ 82,976	$ 76,619	$ 71,468	$ 62,737	$ 59,224	$ 54,628	$ 378,717	$ 248,057	$ 246,355
Interest expense	(84,961)	(64,351)	(48,213)	(41,514)	(36,108)	(27,443)	(24,234)	(21,031)	(239,039)	(108,816)	(88,528)
Net Interest Income	34,764	35,046	34,763	35,105	35,360	35,294	34,990	33,597	139,678	139,241	157,827
Non-interest income	(17,679)	32,284	19,521	39,666	10,951	26,070	25,297	27,755	73,792	90,073	58,817
Operating expenses	(19,253)	(21,490)	(19,009)	(23,030)	(20,367)	(19,922)	(18,641)	(18,226)	(82,782)	(77,156)	(88,786)
Net Income	$ (913)	$ 40,921	$ 32,747	$ 46,845	$ 30,933	$ 36,180	$ 36,324	$ 36,969	$ 119,600	$ 140,406	$ 131,252
Per share data:
Net income - basic (in dollars per share)	$ (0.02)	$ 0.49	$ 0.42	$ 0.60	$ 0.39	$ 0.46	$ 0.46	$ 0.47	$ 1.47	$ 1.78	$ 1.66
Net Income - diluted (in dollars per share)	(0.02)	0.42	0.38	0.50	0.35	0.41	0.43	0.43	1.34	1.60	1.54
Regular dividends declared per common share (in dollars per share)	$ 0.3	$ 0.3	$ 0.3	$ 0.28	$ 0.28	$ 0.28	$ 0.28	$ 0.28	$ 1.18	$ 1.12	$ 1.12

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Thousands	Jan. 29, 2019	Jan. 22, 2019	Dec. 31, 2018	Dec. 31, 2018	Feb. 28, 2019	May 01, 2018
Subsequent Event [Line Items]
Commitment to fund partnership			$ 36,000	$ 57,000
Commitment to fund partnership, funded amount			$ 36,000	36,000
Issuance of common stock				$ 142,228
Subsequent Event
Subsequent Event [Line Items]
Commitment to fund partnership, funded amount					$ 7,000
Issuance of common stock (in shares)	11,500,000
Issuance of common stock	$ 177,000
5 Arches, LLC
Subsequent Event [Line Items]
Option to purchase additional equity, amount						$ 40,000
Minority interest, percentage			20.00%	20.00%		20.00%
5 Arches, LLC | Subsequent Event
Subsequent Event [Line Items]
Option to purchase additional equity, percent		80.00%
Light-Renovation Multifamily Loans | Subsequent Event
Subsequent Event [Line Items]
Loans to be acquired by limited partnership, amount	1,000,000
Commitment to fund partnership	$ 78,000
Commitment to fund partnership, funded amount					$ 20,000

Schedule IV - Mortgage Loans _2

Schedule IV - Mortgage Loans On Real Estate (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)loan	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,486	2,013
Carrying Amount	$ 9,540,598	$ 5,115,210	$ 3,890,751	$ 4,331,450
Principal Amount Subject to Delinquent Principal or Interest	747	$ 459
Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	6,205,941
Principal Amount Subject to Delinquent Principal or Interest	67,612
Real estate loans, federal income tax basis	2,420,000
Residential Loans Held For Sale
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	1,048,801
Principal Amount Subject to Delinquent Principal or Interest	$ 747
Residential Loans Held For Sale | Hybrid ARM Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	108	93
Carrying Amount	$ 89,406
Principal Amount Subject to Delinquent Principal or Interest	$ 0	$ 0
Residential Loans Held For Sale | Hybrid ARM Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.50%
Residential Loans Held For Sale | Hybrid ARM Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	7.38%
Residential Loans Held For Sale | Fixed Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,376	1,917
Carrying Amount	$ 959,284
Principal Amount Subject to Delinquent Principal or Interest	$ 747	$ 459
Residential Loans Held For Sale | Fixed Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.13%
Residential Loans Held For Sale | Fixed Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	7.00%
Residential Loans Held For Sale | ARM Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2	3
Carrying Amount	$ 111
Principal Amount Subject to Delinquent Principal or Interest	$ 0	$ 0
Residential Loans Held For Sale | ARM Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.00%
Residential Loans Held For Sale | ARM Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.13%
Single-family rental loans, held-for-sale at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	$ 28,460
Principal Amount Subject to Delinquent Principal or Interest	$ 0
Single-family rental loans, held-for-sale at fair value | Fixed Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	11
Carrying Amount	$ 28,460
Principal Amount Subject to Delinquent Principal or Interest	$ 0
Single-family rental loans, held-for-sale at fair value | Fixed Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.62%
Single-family rental loans, held-for-sale at fair value | Fixed Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	7.47%
Residential bridge loans held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	$ 112,798
Principal Amount Subject to Delinquent Principal or Interest	$ 12,134
Residential bridge loans held-for-investment | Fixed Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	157
Carrying Amount	$ 112,798
Principal Amount Subject to Delinquent Principal or Interest	$ 12,134
Residential bridge loans held-for-investment | Fixed Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	7.50%
Residential bridge loans held-for-investment | Fixed Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	12.00%
Multifamily loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	$ 2,144,598
Principal Amount Subject to Delinquent Principal or Interest	$ 0
Multifamily loans, held-for-investment | Fixed Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	162
Carrying Amount	$ 2,144,598
Principal Amount Subject to Delinquent Principal or Interest	$ 0
Multifamily loans, held-for-investment | Fixed Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.29%
Multifamily loans, held-for-investment | Fixed Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.73%
Legacy Sequoia | Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2,641	3,178
Principal Amount Subject to Delinquent Principal or Interest	$ 13,955	$ 25,457
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	21	33
Carrying Amount	$ 8,511
Principal Amount Subject to Delinquent Principal or Interest	$ 0	$ 641
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.63%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.00%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2,620	3,145
Carrying Amount	$ 511,447
Principal Amount Subject to Delinquent Principal or Interest	$ 13,955	$ 24,816
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	1.25%
Legacy Sequoia | Residential loans, held-for-investment | ARM Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	5.63%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2,800	806
Carrying Amount	$ 2,079,382
Principal Amount Subject to Delinquent Principal or Interest	$ 1,905	$ 0
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.75%
Sequoia Choice | Residential loans, held-for-investment | Fixed Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.50%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	7,900
Carrying Amount	$ 1,222,669
Principal Amount Subject to Delinquent Principal or Interest	$ 50,528
Freddie Mac SLST | Residential loans, held-for-investment | Fixed Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.00%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	10.50%
Redwood | Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	3,296	3,292
Principal Amount Subject to Delinquent Principal or Interest	$ 1,224	$ 0
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	385	259
Carrying Amount	$ 309,747
Principal Amount Subject to Delinquent Principal or Interest	$ 0	$ 0
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.63%
Redwood | Residential loans, held-for-investment | Hybrid ARM Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.38%
Redwood | Residential loans, held-for-investment | Fixed Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2,911	3,033
Carrying Amount	$ 2,074,185
Principal Amount Subject to Delinquent Principal or Interest	$ 1,224	$ 0
Redwood | Residential loans, held-for-investment | Fixed Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	2.75%
Redwood | Residential loans, held-for-investment | Fixed Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.75%

Schedule IV - Mortgage Loans _3

Schedule IV - Mortgage Loans On Real Estate - Rollforward of mortgage loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Balance at beginning of period	$ 5,115,210	$ 3,890,751	$ 4,331,450
Additions during period:
Originations/acquisitions	10,607,896	5,741,427	4,983,049
Net discount accretion	0	0	330
Deductions during period:
Sales	(5,426,304)	(3,982,683)	(4,509,644)
Principal repayments	(843,984)	(576,620)	(879,188)
Reversal of provision for loan losses	0	0	7,102
Transfers to REO	(4,104)	(4,219)	(11,566)
Deconsolidation adjustments	0	0	(6,871)
Changes in fair value, net	91,884	46,554	(23,911)
Balance at end of period	$ 9,540,598	$ 5,115,210	$ 3,890,751