Redwood Trust (RWT) 10-K 2 Mar 20 2019 FY Annual report Financial data

Cover Page

Cover Page - USD ($)	12 Months Ended
	Dec. 31, 2019	Feb. 26, 2020	Jun. 28, 2019
Cover page.
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2019
Document Transition Report	false
Entity File Number	1-13759
Entity Registrant Name	REDWOOD TRUST, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	68-0329422
Entity Address, Address Line One	One Belvedere Place, Suite 300
Entity Address, City or Town	Mill Valley,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94941
City Area Code	415
Local Phone Number	389-7373
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	RWT
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 1,600,621,984
Entity Common Stock, Shares Outstanding		114,353,805
Documents Incorporated by Reference	Portions of the registrant’s definitive Proxy Statement to be filed with the Securities and Exchange Commission under Regulation 14A within 120 days after the end of registrant’s fiscal year covered by this Annual Report are incorporated by reference into Part III.
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Central Index Key	0000930236
Current Fiscal Year End Date	--12-31

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands		Dec. 31, 2019	Dec. 31, 2018
ASSETS
Real estate securities, at fair value	[1]	$ 1,099,874	$ 1,452,494
Other investments	[1]	358,130	438,518
Cash and cash equivalents	[1]	196,966	175,764
Restricted cash	[1]	93,867	29,313
Goodwill	[1]	88,675	0
Intangible assets	[1]	72,789	0
Accrued interest receivable	[1]	71,058	47,105
Derivative assets	[1]	35,701	35,789
Other assets	[1]	348,263	217,825
Total Assets	[1]	17,995,440	11,937,406
Liabilities
Short-term debt	[1],[2]	2,329,145	2,400,279
Accrued interest payable	[1]	60,655	42,528
Derivative liabilities	[1]	163,424	84,855
Accrued expenses and other liabilities	[1]	146,238	78,719
Asset-backed securities issued, at fair value	[1]	10,515,475	5,410,073
Long-term debt, net	[1]	2,953,272	2,572,158
Total liabilities	[1]	16,168,209	10,588,612
Commitments and Contingencies (see Note 16)	[1]
Equity
Common stock, par value $0.01 per share, 270,000,000 and 180,000,000 shares authorized; 114,353,036 and 84,884,344 issued and outstanding	[1]	1,144	849
Additional paid-in capital	[1]	2,269,617	1,811,422
Accumulated other comprehensive income	[1]	41,513	61,297
Cumulative earnings	[1]	1,579,124	1,409,941
Cumulative distributions to stockholders	[1]	(2,064,167)	(1,934,715)
Total equity	[1]	1,827,231	1,348,794
Total Liabilities and Equity	[1]	17,995,440	11,937,406
Convertible notes			201,000
Residential loans, held-for-sale, at fair value
ASSETS
Loan market valuation adjustment	[1]	536,385	1,048,801
Residential loans, held-for-investment, at fair value
ASSETS
Loan market valuation adjustment	[1]	7,178,465	6,205,941
Business purpose residential loans, held-for-sale, at fair value
ASSETS
Loan market valuation adjustment	[1]	331,565	28,460
Business purpose residential loans, held-for-investment, at fair value
ASSETS
Loan market valuation adjustment	[1]	3,175,178	112,798
Multifamily loans, held-for-investment, at fair value
ASSETS
Loan market valuation adjustment	[1]	$ 4,408,524	$ 2,144,598
[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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , respectively. See Note 4 for further discussion.
[2]	Includes $201 million of convertible notes at December 31, 2018, 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 the date presented. See Note 13 for further discussion.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	270,000,000	180,000,000
Common stock, issued (in shares)	114,353,036	84,884,344
Common stock, outstanding (in shares)	114,353,036	84,884,344
Variable interest held by entity, assets	$ 11,931,869	$ 6,331,191
Variable interest held by entity, liabilities	$ 10,717,072	5,709,807
Convertible notes		$ 201,000

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Interest Income
Residential loans	$ 315,953	$ 239,818	$ 154,362
Business purpose residential loans	53,805	4,333	0
Multifamily loans	132,600	21,322	0
Real estate securities	91,822	105,078	90,803
Other interest income	28,101	8,166	2,892
Total interest income	622,281	378,717	248,057
Interest Expense
Short-term debt	(96,506)	(58,917)	(36,851)
Asset-backed securities issued	(294,466)	(99,429)	(19,108)
Long-term debt	(88,836)	(80,693)	(52,857)
Total interest expense	(479,808)	(239,039)	(108,816)
Net Interest Income	142,473	139,678	139,241
Non-interest Income
Mortgage banking activities, net	87,266	59,566	53,908
Investment fair value changes, net	35,500	(25,689)	10,374
Other income	19,257	13,070	12,436
Realized gains, net	23,821	27,041	13,355
Total non-interest income, net	165,844	73,988	90,073
General and administrative expenses	(118,672)	(82,782)	(77,156)
Other expenses	13,022	196	0
Net Income before Provision for Income Taxes	176,623	130,688	152,158
Provision for income taxes	(7,440)	(11,088)	(11,752)
Net Income	$ 169,183	$ 119,600	$ 140,406
Basic earnings per common share (in dollars per share)	$ 1.63	$ 1.47	$ 1.78
Diluted earnings per common share (in dollars per share)	$ 1.46	$ 1.34	$ 1.60
Basic weighted average shares outstanding (in shares)	101,120,744	78,724,912	76,792,957
Diluted weighted average shares outstanding (in shares)	136,780,594	110,027,770	101,975,008

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 169,183	$ 119,600	$ 140,406
Other comprehensive (loss) income:
Net unrealized gain (loss) on available-for-sale securities	17,077	(7,298)	22,864
Reclassification of unrealized gain on available-for-sale securities to net income	(19,967)	(25,561)	(10,536)
Net unrealized (loss) gain on interest rate agreements	(16,894)
Net unrealized (loss) gain on interest rate agreements		8,908	1,022
Reclassification of unrealized loss on interest rate agreements to net income	0
Reclassification of unrealized loss on interest rate agreements to net income		0	45
Total other comprehensive (loss) income	(19,784)	(23,951)	13,395
Total Comprehensive Income	$ 149,399	$ 95,649	$ 153,801

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, 2016	$ 1,149,428	$ 768	$ 1,676,486	$ 71,853	$ 1,149,935	$ (1,749,614)
Beginning 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)	7,187,500	8,738,319
Direct stock purchase and dividend reinvestment plan	$ 1,706	$ 1	1,705
Direct stock purchase and dividend reinvestment plan (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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	169,183				169,183
Other comprehensive income (loss)	(19,784)			(19,784)
Issuance of common stock	442,172	$ 288	441,884
Issuance of common stock (in shares)		28,724,645
Direct stock purchase and dividend reinvestment plan	6,307	$ 4	6,303
Direct stock purchase and dividend reinvestment plan (in shares)		399,838
Employee stock purchase and incentive plans	(4,946)	$ 3	(4,949)
Employee stock purchase and incentive plans (in shares)		344,209
Non-cash equity award compensation	14,957		14,957
Common dividends declared	(129,452)					(129,452)
Balance at End of Period at Dec. 31, 2019	$ 1,827,231	$ 1,144	$ 2,269,617	$ 41,513	$ 1,579,124	$ (2,064,167)
Ending balance (in shares) at Dec. 31, 2019		114,353,036

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Stockholders' Equity [Abstract]
Common dividends declared (in dollars per share)	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.28	$ 1.20	$ 1.18	$ 1.12

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2017
Cash Flows From Operating Activities:
Net income		$ 169,183		$ 119,600		$ 140,406
Adjustments to reconcile net income to net cash used in operating activities:
Amortization of premiums, discounts, and debt issuance costs, net		(5,066)		(13,687)		(18,250)
Depreciation and amortization of non-financial assets		10,133		1,308		1,213
Originations of held-for-sale loans		(569,915)		0		0
Purchases of held-for-sale loans		(5,823,547)		(7,162,131)		(5,705,842)
Proceeds from sales of held-for-sale loans		5,198,089		5,383,313		3,903,147
Principal payments on held-for-sale loans		106,183		66,892		52,956
Net settlements of derivatives		(66,059)		51,115		(9,950)
Non-cash equity award compensation expense		14,957		13,736		10,378
Market valuation adjustments		(97,006)		(24,069)		(51,484)
Realized gains, net		(23,821)		(27,041)		(13,355)
Net change in:
Accrued interest receivable and other assets		(83,210)		(41,849)		(17,562)
Accrued interest payable, deferred tax liabilities, and accrued expenses and other liabilities		4,502		21,080		(4,820)
Net cash used in operating activities		(1,165,577)		(1,611,733)		(1,713,163)
Cash Flows From Investing Activities:
Originations of loans held-for-investment		(448,189)		0		0
Purchases of loans held-for-investment		(49,489)		(147,523)		0
Proceeds from sales of loans held-for-investment		9,422		0		0
Principal payments on loans held-for-investment		1,751,303		781,063		523,561
Purchases of real estate securities		(345,403)		(609,568)		(600,875)
Proceeds from sales of real estate securities		707,357		582,331		228,420
Principal payments on real estate securities		84,303		84,495		77,778
Purchases of servicer advance investments		(69,610)		(395,813)		0
Principal repayments from servicer advance investments		203,876		94,644		0
Acquisition of 5 Arches, net of cash acquired		(3,714)		(9,999)		0
Acquisition of CoreVest, net of cash acquired		(451,626)		0		0
Net investment in participation in loan warehouse facility		38,209		(38,209)		0
Net investment in multifamily loan fund		(40,467)		0		0
Other investing activities, net		(67,677)		(19,113)		51,494
Net cash provided by (used in) investing activities		1,025,862		(12,752)		280,378
Cash Flows From Financing Activities:
Proceeds from borrowings on short-term debt		6,452,566		6,975,965		4,895,889
Repayments on short-term debt		(7,193,677)		(6,711,264)		(4,036,634)
Proceeds from issuance of asset-backed securities		1,397,126		1,658,848		567,100
Repayments on asset-backed securities issued		(1,123,119)		(459,171)		(205,163)
Proceeds from issuance of long-term debt		387,053		199,000		245,000
Deferred debt issuance costs		(7,023)		(4,977)		(7,380)
Repayments on long-term debt		(1,137)		0		0
Net proceeds from issuance of common stock		450,710		142,601		302
Net payments on repurchase of common stock		0		(16,315)		(8,417)
Taxes paid on equity award distributions		(5,471)		(4,839)		(4,136)
Dividends paid		(129,452)		(96,802)		(88,299)
Other financing activities, net		(2,105)		(291)		(137)
Net cash provided by (used in) financing activities		225,471		1,682,755		1,358,125
Net decrease in cash and cash equivalents		85,756		58,270		(74,660)
Cash, cash equivalents and restricted cash at beginning of period	[1]	205,077		146,807		221,467
Cash, cash equivalents and restricted cash at end of period	[1]	290,833		205,077		146,807
Cash paid during the period for:
Interest		452,216		207,014		103,279
Taxes		7,963		10,594		2,746
Supplemental Noncash Information:
Real estate securities retained from loan securitizations		13,729		51,911		79,662
Retention of mortgage servicing rights from loan securitizations and sales		868		328		7,387
Consolidation of single-family rental loans held in securitization trusts		1,829,281		0		0
Consolidation of single-family rental ABS issued		1,656,023		0		0
Transfers from loans held-for-sale to loans held-for-investment		1,801,560		2,062,809		1,245,430
Transfers from loans held-for-investment to loans held-for-sale		22,808		15,717		98,854
Transfers from residential loans to real estate owned		8,609		4,104		4,220
Right-of-use asset obtained in exchange for operating lease liability		13,094		0		0
Cash and cash equivalents		196,966	[2]	175,764	[2]	145,000
Restricted cash		93,867	[2]	29,313	[2]	2,000
Residential loans
Cash Flows From Investing Activities:
Purchases of multifamily securities held in consolidated securitization trusts		(193,212)		(227,649)		0
Supplemental Noncash Information:
Consolidation of multifamily loans held in securitization trusts		1,190,995		1,206,645		0
Consolidation of multifamily ABS		997,783		978,996		0
Multifamily loans
Cash Flows From Investing Activities:
Purchases of multifamily securities held in consolidated securitization trusts		(99,221)		(107,411)		0
Supplemental Noncash Information:
Consolidation of multifamily loans held in securitization trusts		2,162,385		2,099,916		0
Consolidation of multifamily ABS		$ 2,058,214		$ 1,975,324		$ 0
[1]	Cash, cash equivalents, and restricted cash at December 31, 2019 included cash and cash equivalents of $197 million and restricted cash of $94 million ; at December 31, 2018 included cash and cash equivalents of $176 million and restricted cash of $29 million ; and at December 31, 2017 included cash and cash equivalents of $145 million and restricted cash of $2 million .
[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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , respectively. See Note 4 for further discussion.

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	[1]	Dec. 31, 2018	[1]	Dec. 31, 2017
Statement of Cash Flows [Abstract]
Cash and cash equivalents	$ 196,966		$ 175,764		$ 145,000
Restricted cash	$ 93,867		$ 29,313		$ 2,000
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , respectively. See Note 4 for further discussion.

Organization

Organization	12 Months Ended
	Dec. 31, 2019
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 four segments: Residential Lending, Business Purpose Lending, Multifamily Investments, and Third-Party Residential Investments. Our primary sources of income are net interest income from our investments 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 origination and acquisition of loans, and their subsequent sale, securitization, or transfer to our investment portfolios. 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 taxable REIT subsidiaries” or “TRS.” Redwood was incorporated in the State of Maryland on April 11, 1994, and commenced operations on August 19, 1994. On March 1, 2019, Redwood completed the acquisition of 5 Arches, LLC ("5 Arches"), at which time 5 Arches became a wholly-owned subsidiary of Redwood. On October 15, 2019, Redwood acquired CoreVest American Finance Lender, LLC and certain affiliated entities ("CoreVest"), at which time CoreVest became wholly owned by Redwood. 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, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements presented herein are at December 31, 2019 and December 31, 2018 , and for the years ended December 31, 2019 , 2018 , and 2017 . 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, 2019 and 2018 , 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 ("Sequoia Choice"). We also consolidate the assets and liabilities of certain Freddie Mac K-Series and Freddie Mac Seasoned Loans Structured Transaction ("SLST") securitizations we invested in beginning in 2018. Finally, we consolidated the assets and liabilities of certain CoreVest American Finance Lender ("CAFL") securitizations beginning in the fourth quarter of 2019, in connection with our acquisition of CoreVest. 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 and CAFL 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, the underlying loans at the consolidated Freddie Mac K-Series are shown under Multifamily loans held-for-investment, at fair value, and the underlying single-family rental loans at the consolidated CAFL entities are shown under Business purpose 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 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. Beginning in the first quarter of 2019, we consolidated 5 Arches, an originator of business purpose residential loans, pursuant to the exercise of our purchase option and the acquisition of the remaining equity in the company. In the fourth quarter of 2019, we acquired and consolidated CoreVest, an originator and portfolio manager of business purpose residential loans. 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. Acquisition of 5 Arches, LLC In May 2018, Redwood acquired a 20% minority interest in 5 Arches for $10 million in cash, with a one -year option to purchase all remaining equity in the company. On March 1, 2019, we completed the acquisition of the remaining 80% interest in 5 Arches, an originator of business purpose residential loans. At closing, we paid approximately $13 million of cash and the remaining $27 million in consideration will be paid in a mix of cash and Redwood common stock over the next two years . Acquisition of CoreVest On October 15, 2019, we acquired CoreVest, an originator and portfolio manager of business purpose residential loans. Aggregate consideration for this acquisition totaled approximately $492 million , net of in-place financing on existing assets. The consideration consisted of $482 million of cash and $10 million of restricted stock awards issued to the CoreVest management team. Based on the terms of the equity interest purchase agreement, we determined that the $10 million of shares should be accounted for as compensation expense for post-combination services, and therefore, it is not included in the GAAP purchase price allocated to the assets and liabilities acquired. During 2019, we accounted for the acquisitions of 5 Arches and CoreVest under the acquisition method of accounting pursuant to ASC 805. We performed the purchase price allocations and recorded underlying assets acquired and liabilities assumed based on their estimated fair values using the information available as of each acquisition date, with the excess of the purchase price allocated to goodwill. Through December 31, 2019 , there were no significant changes to our purchase price allocations, which are summarized in the following table. Table 2.1 – Purchase Price Allocations (In Thousands) 5 Arches CoreVest Acquisition Date March 1, 2019 October 15, 2019 Purchase price: Cash $ 12,575 $ 482,311 Contingent consideration, at fair value 24,621 — Purchase option, at fair value 5,082 — Equity method investment, at fair value 8,052 — Total consideration $ 50,330 $ 482,311 Allocated to: Business purpose residential loans, at fair value $ 2,022 $ 2,610,490 Cash and cash equivalents 2,128 30,685 Restricted cash 9,082 — Other assets 5,473 67,420 Goodwill 28,747 59,928 Intangible assets 24,800 56,500 Deferred tax asset — 2,577 Total assets acquired 72,252 2,827,600 Asset-backed securities issued, at fair value — 1,656,023 Short-term debt, net 3,800 663,275 Accrued expenses and other liabilities 13,920 25,991 Deferred tax liability 4,202 — Total liabilities assumed 21,922 2,345,289 Total net assets acquired $ 50,330 $ 482,311 Because we owned a 20% noncontrolling interest in 5 Arches immediately before obtaining full control, we remeasured our initial minority investment and purchase option at their acquisition-date fair values using the income approach, which resulted in a gain of $2 million that was recorded in Other income on our consolidated statements of income during the three months ended March 31, 2019. We recognized $2 million of acquisition costs related our acquisitions of 5 Arches and CoreVest during the year ended December 31, 2019. These costs primarily related to accounting, consulting, and legal expenses and are included in our General and administrative expenses on our consolidated statements of income. In connection with the acquisitions of 5 Arches and CoreVest, we identified and recorded finite-lived intangible assets totaling $25 million and $57 million , respectively. The amortization period for each of these assets and the activity for the year ended December 31, 2019 is summarized in the table below. Table 2.2 – Intangible Assets – Activity Carrying Value at December 31, 2018 Additions Amortization Expense Carrying Value at December 31, 2019 Weighted Average Amortization Period (in years) (Dollars in Thousands) 5 Arches Broker network $ — $ 18,100 $ (3,017 ) $ 15,083 5 Non-compete agreements — 2,900 (806 ) 2,094 3 Loan administration fees on existing loan assets — 2,600 (2,167 ) 433 1 Tradename — 1,200 (333 ) 867 3 Total 5 Arches — 24,800 (6,323 ) 18,477 5 CoreVest Borrower network — 45,300 (1,348 ) 43,952 7 Non-compete agreements — 6,600 (458 ) 6,142 3 Tradename — 2,800 (194 ) 2,606 3 Developed technology — 1,800 (188 ) 1,612 2 Total CoreVest — 56,500 (2,188 ) 54,312 6 Total $ — $ 81,300 $ (8,511 ) $ 72,789 6 All of our intangible assets are amortized on a straight-line basis. Estimated future amortization expense is summarized in the table below. Table 2.3 – Intangible Asset Amortization Expense by Year December 31, 2019 (In Thousands) 5 Arches CoreVest Total 2020 $ 5,420 $ 10,505 $ 15,925 2021 4,987 10,317 15,304 2022 3,848 8,952 12,800 2023 3,620 6,471 10,091 2024 602 6,471 7,073 2025 and thereafter — 11,596 11,596 Total Future Intangible Asset Amortization $ 18,477 $ 54,312 $ 72,789 We recorded total goodwill of $89 million in 2019 as a result of the total consideration exceeding the fair value of the net assets acquired from 5 Arches and CoreVest. The goodwill was attributed to the expected business synergies and expansion into business purpose loan markets, as well as access to the knowledgeable and experienced workforces continuing to provide services to the business. We expect $75 million of this goodwill to be deductible for tax purposes. For reporting purposes, we included the intangible assets and goodwill from these acquisitions within the Business Purpose Lending segment. The following table presents the goodwill activity for the year ended December 31, 2019 . Table 2.4 – Goodwill – Activity Year Ended December 31, 2019 (In Thousands) 5 Arches CoreVest Total Beginning balance $ — $ — $ — Goodwill recognized from acquisition 28,747 59,928 88,675 Impairment — — — Ending Balance $ 28,747 $ 59,928 $ 88,675 The liability resulting from the contingent consideration arrangement with 5 Arches was recorded at its acquisition-date fair value of $25 million as part of total consideration for the acquisition of 5 Arches. At December 31, 2019 , the estimated fair value of this contingent liability was $28 million and was recorded as a component of Accrued expenses and other liabilities on our consolidated balance sheets. During the year ended December 31, 2019, we recorded $3 million of contingent consideration expense through Other expenses on our consolidated statements of income. See Note 16 for additional information on our contingent consideration liability. The following unaudited pro forma financial information presents Net interest income, Non-interest income, and Net income of Redwood, 5 Arches, and CoreVest combined, as if the acquisitions occurred as of January 1, 2018. These pro forma amounts have been adjusted to include the amortization of intangible assets and acquisition-related compensation expense for both periods, and to exclude the income statement impacts related to our equity method investment in 5 Arches. The unaudited pro forma financial information is not intended to represent or be indicative of the consolidated financial results of operations that would have been reported if the acquisition had been completed as of January 1, 2018 and should not be taken as indicative of our future consolidated results of operations. During the period from March 1, 2019 to December 31, 2019 , 5 Arches had net interest income of less than $0.1 million , non-interest income of $19 million , and net income of $3 million . In addition, 5 Arches had intangible asset amortization expense of $6 million for this period. During the period from October 15, 2019 to December 31, 2019, CoreVest had net interest income of $11 million , non-interest income of $19 million , and net income of $22 million . In addition, CoreVest had intangible asset amortization expense of $2 million for this period. Table 2.5 – Unaudited Pro Forma Financial Information Years Ended December 31, (In Thousands) 2019 2018 Supplementary pro forma information: Net interest income $ 167,680 $ 165,849 Non-interest income 193,519 103,179 Net income 185,896 118,125

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Significant Accounting Policies Business Combinations We use the acquisition method of accounting for business combinations, under which the purchase price is allocated to the fair values of the assets acquired and liabilities assumed at the acquisition date. The excess of the purchase price over the amount allocated to the assets acquired and liabilities assumed is recorded as goodwill. Acquisition-related costs are expensed as incurred. 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, business purpose residential loans, interest-only (“IO”) and certain subordinate securities, MSRs, servicer advance investments, excess MSRs, and certain of our other investments. 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, Freddie Mac K-Series, and CAFL 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 and any accrued interest is reversed against interest income. 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-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, 2019 , our current intent is to hold these loans for longer-term investment while they are financed by the FHLBC. 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 and any accrued interest is reversed against interest income. 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. 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 based on amounts expected to be paid to the securities issued by these entities. 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 - Held-for-Sale at Fair Value We originate business purpose residential loans, including single-family rental loans through our business purpose lending platform. Single-family rental loans are mortgage loans secured by 1-4 unit residential real estate that the borrower owns as an investment property and rents to residential tenants. We classify single-family rental loans as held-for-sale at fair value when we originate these loans with the intent to transfer to securitization 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 and any accrued interest is reversed against interest income. 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. Business Purpose Residential Loans - Held-for-Investment at Fair Value We also originate residential bridge loans through our business purpose lending platform. Residential bridge loans are mortgage loans generally secured by unoccupied residential real estate that the borrower owns as an investment and that is being renovated, rehabilitated or constructed. Residential bridge loans are classified as held-for-investment at fair value if we intend to hold these loans to maturity. Certain single-family rental loans that were originated with the intent to sell as part of our business purpose 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, 2019 , our current intent is to hold these loans for longer-term investment while they are financed by the FHLBC. 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 and any accrued interest is reversed against interest income. 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. In addition, we record residential loans held at consolidated CAFL 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 based on amounts expected to be paid to the securities issued by these entities. Changes in fair value for these loans are recurring and reported through our consolidated statements of income in Investment fair value changes, net. 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 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 based on amounts expected to be paid to the securities issued by these entities. 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 and business purpose 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 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 mortgage-backed securities (“MBS”) collateralized by residential and multifamily mortgage loans. We classify our real estate securities as trading or available-for-sale 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 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 accounted for this subordinated participation interest as a loan receivable at amortized cost, and all associated interest income was recorded as a component of Other interest income in our consolidated statements of income. During the first quarter of 2019, our agreement associated with this investment was terminated and the balance outstanding under this agreement was repaid. 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. See Note 10 for further discussion on excess MSRs. Investment in Multifamily Loan Fund In January 2019, we invested in a limited partnership created to acquire floating rate, light-renovation multifamily loans from Freddie Mac. We account for our ownership interest in this partnership 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 assess our investment for impairment whenever events or changes in circumstances indicate that the carrying amount of our investment might not be recoverable. We have elected to record our share of earnings or losses from this investment on a one-quarter lag, as a component of Other income on our consolidated statements of income. Shared Home Appreciation Options During 2019, we invested in shared home appreciation options that allow us to share in both home price appreciation and depreciation. We have elected to record these investments at fair value and report changes in fair value through Investment fair value changes, net on our consolidated statements of income. See Note 10 for further discussion on shared home appreciation options. 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 accounted for our ownership interest in 5 Arches using the equity method of accounting as we were able to exert significant influence over but not control the activities of the investee. On March 1, 2019, we completed the acquisition of the remaining 80% interest in 5 Arches and consolidated their assets and liabilities onto our balance sheet. 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 cash collateral for certain consolidated securitization entities. Goodwill and Intangible Assets Significant judgment is required to estimate the fair value of intangible assets and in assigning their estimated useful lives. Accordingly, we typically seek the assistance of independent third-party valuation specialists for significant intangible assets. The fair value estimates are based on available historical information and on future expectations and assumptions we deem reasonable. We generally use an income-based valuation method to estimate the fair value of intangible assets, which discounts expected future cash flows to present value using estimates and assumptions we deem reasonable. Determining the estimated useful lives of intangible assets also requires judgment. Our assessment as to which intangible assets are deemed to have finite or indefinite lives is based on several factors including economic barriers of entry for the acquired business, retention trends, and our operating plans, among other factors. Finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis and reviewed for impairment if indicators are present. Additionally, useful lives are evaluated each reporting period to determine if revisions to the remaining periods of amortization are warranted. Goodwill is tested for impairment annually or more frequently if indicators of impairment exist. We have elected to make the first day of our fiscal fourth quarter the annual impairment assessment date for goodwill. We first assess qualitative factors to determine whether it is more likely than not that the fair value is less than the carrying value. If, based on that assessment, we believe it is more likely than not that the fair value is less than the carrying value, then a two-step quantitative goodwill impairment test is performed. At December 31, 2019, no impairment of goodwill was identified. 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”), interest rate lock commitments ("IRLCs"), 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 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, IRLCs, 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. Interest Rate Futures Interest rate futures are futures contracts based on U.S. Treasury notes, U.S. dollar-denominated interest rate swaps, or U.S. dollar-denominated interest rate indices. 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. Interest Rate Lock Commitments IRLCs are agreements we have made with third-party borrowers for single-family rental loans that will be originated and held for sale. IRLCs qualify as derivatives under GAAP and are recorded at their estimated fair values on our consolidated balance sheets. 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 i

Principles of Consolidation

Principles of Consolidation	12 Months Ended
	Dec. 31, 2019
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 At December 31, 2019 , we consolidated Legacy Sequoia, Sequoia Choice, Freddie Mac K-Series and Freddie Mac SLST securitization entities that we determined were VIEs and for which we determined we were the primary beneficiary. Additionally, beginning in the fourth quarter of 2019, we consolidated certain CAFL securitization entities that we determined were VIEs and for which we determined we were the primary beneficiary. Each of these entities is independent of Redwood and of each other and the assets and liabilities of these entities are not owned by and are not legal obligations of ours. Our exposure to these entities is primarily through the financial interests we have retained, although for the consolidated Sequoia and CAFL 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, 2019 , the estimated fair value of our investments in the consolidated Legacy Sequoia, Sequoia Choice, Freddie Mac SLST, Freddie Mac K-Series, and CAFL entities was $6 million , $256 million , $451 million , $253 million , and $195 million , respectively. Beginning in 2018, we consolidated two Servicing Investment entities 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, 2019 , we held an 80% ownership interest in, and were responsible for the management 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, beginning in 2018, we consolidated an entity that was formed to finance servicer 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, 2019 , the estimated fair value of our investment in the Servicing Investment entities was $53 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, 2019 Legacy Sequoia Sequoia Choice Freddie Mac SLST Freddie Mac K-Series CAFL Servicing Investment Total Consolidated VIEs (Dollars in Thousands) Residential loans, held-for-investment $ 407,890 $ 2,291,463 $ 2,367,215 $ — $ — $ — $ 5,066,568 Business purpose residential loans, held-for-investment — — — — 2,192,552 — 2,192,552 Multifamily loans, held-for-investment — — — 4,408,524 — — 4,408,524 Other investments — — — — — 184,802 184,802 Cash and cash equivalents — — — — — 9,015 9,015 Restricted cash 143 27 — — — 21,766 21,936 Accrued interest receivable 655 9,824 7,313 13,539 9,572 4,869 45,772 Other assets 460 — 445 — 1,795 — 2,700 Total Assets $ 409,148 $ 2,301,314 $ 2,374,973 $ 4,422,063 $ 2,203,919 $ 220,452 $ 11,931,869 Short-term debt $ — $ — $ — $ — $ — $ 152,554 $ 152,554 Accrued interest payable 395 7,732 5,374 12,887 7,485 187 34,060 Accrued expenses and other liabilities — 27 — — — 14,956 14,983 Asset-backed securities issued 402,465 2,037,198 1,918,322 4,156,239 2,001,251 — 10,515,475 Total Liabilities $ 402,860 $ 2,044,957 $ 1,923,696 $ 4,169,126 $ 2,008,736 $ 167,697 $ 10,717,072 Number of VIEs 20 9 2 5 10 3 49 December 31, 2018 Legacy Sequoia Sequoia Choice Freddie Mac SLST Freddie Mac K-Series CAFL 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 Other assets 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 We consolidate the assets and liabilities of certain Sequoia and CAFL 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 and CAFL 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 and CAFL entities in accordance with GAAP. We consolidate the assets and liabilities of certain Freddie Mac K-Series and SLST securitization trusts resulting from our investment in subordinate securities issued by these trusts and in the case of certain CAFL securitizations, resulting from securities acquired through our acquisition of CoreVest. Additionally, we consolidate 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 48 Sequoia securitization entities sponsored by us that are still outstanding as of December 31, 2019 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 first quarter of 2019, the master servicer for one of our unconsolidated Sequoia entities exercised their right to call the securitization and paid off the underlying securities. We realized a $4 million gain related to the called securities, which was recognized through Realized gains, net on our consolidated statements of income. In connection with this called securitization, Redwood acquired $39 million of residential real estate loans that were subsequently sold or were held in our held-for-investment portfolio at Redwood at December 31, 2019. During the years ended December 31, 2019 and 2018 , we transferred residential loans to five and eight 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, 2019 and 2018 . Table 4.2 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Years Ended December 31, (In Thousands) 2019 2018 Principal balance of loans transferred $ 1,872,910 $ 3,188,358 Trading securities retained, at fair value 8,882 52,859 AFS securities retained, at fair value 4,847 7,739 The following table summarizes the cash flows during the years ended December 31, 2019 and 2018 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) 2019 2018 Proceeds from new transfers $ 1,912,334 $ 3,175,900 MSR fees received 11,857 13,417 Funding of compensating interest, net (368 ) (122 ) Cash flows received on retained securities 27,045 28,614 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 2019 and 2018 . Table 4.4 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Year Ended December 31, 2019 Year Ended December 31, 2018 At Date of Securitization Senior IO Securities Subordinate Securities Senior IO Securities Subordinate Securities Prepayment rates 25 % 15 % 9 % 10 % Discount rates 14 % 7 % 14 % 5 % Credit loss assumptions 0.20 % 0.20 % 0.20 % 0.20 % The following table presents additional information at December 31, 2019 and December 31, 2018 , 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, 2019 December 31, 2018 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 88,425 $ 129,111 Subordinate securities, classified as AFS 140,649 162,314 Mortgage servicing rights 40,254 58,572 Maximum loss exposure (1) $ 269,328 $ 349,997 Assets transferred: Principal balance of loans outstanding $ 10,299,442 $ 10,580,216 Principal balance of loans 30+ days delinquent 41,809 21,805 (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, 2019 and December 31, 2018 . Table 4.6 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood December 31, 2019 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2019 $ 40,254 $ 48,765 $ 180,309 Expected life (in years) (2) 6 6 14 Prepayment speed assumption (annual CPR) (2) 11 % 14 % 16 % Decrease in fair value from: 10% adverse change $ 1,643 $ 1,908 $ 205 25% adverse change 3,913 5,086 1,434 Discount rate assumption (2) 11 % 12 % 5 % Decrease in fair value from: 100 basis point increase $ 1,447 $ 1,079 $ 18,127 200 basis point increase 2,795 2,482 33,630 Credit loss assumption (2) N/A 0.21 % 0.21 % Decrease in fair value from: 10% higher losses N/A $ — $ 1,804 25% higher losses N/A — 4,520 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 (1) Senior securities included $49 million and $61 million of interest-only securities at December 31, 2019 and December 31, 2018 , 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, 2019 , grouped by asset type. Table 4.7 – Third-Party Sponsored VIE Summary (In Thousands) December 31, 2019 Mortgage-Backed Securities Senior $ 127,094 Mezzanine 508,195 Subordinate 235,510 Total Mortgage-Backed Securities 870,799 Excess MSR 16,216 Total Investments in Third-Party Sponsored VIEs $ 887,015 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.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2019
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, 2019 and December 31, 2018 . Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value (In Thousands) Assets Residential loans, held-for-sale at fair value $ 536,385 $ 536,509 $ 1,048,801 $ 1,048,821 Residential loans, held-for-investment 7,178,465 7,178,465 6,205,941 6,205,941 Business purpose residential loans, held-for-sale 331,565 331,565 28,460 28,460 Business purpose residential loans, held-for-investment 3,175,178 3,175,178 112,798 112,798 Multifamily loans 4,408,524 4,408,524 2,144,598 2,144,598 Trading securities 860,540 860,540 1,118,612 1,118,612 Available-for-sale securities 239,334 239,334 333,882 333,882 Servicer advance investments (1) 169,204 169,204 300,468 300,468 MSRs (1) 42,224 42,224 60,281 60,281 Participation in loan warehouse facility (1) — — 39,703 39,703 Excess MSRs (1) 31,814 31,814 27,312 27,312 Shared home appreciation options (1) 45,085 45,085 — — Cash and cash equivalents 196,966 196,966 175,764 175,764 Restricted cash 93,867 93,867 29,313 29,313 Accrued interest receivable 71,058 71,058 47,105 47,105 Derivative assets 35,701 35,701 35,789 35,789 REO (2) 9,462 10,389 3,943 4,396 Margin receivable (2) 209,776 209,776 100,773 100,773 FHLBC stock (2) 43,393 43,393 43,393 43,393 Guarantee asset (2) 1,686 1,686 2,618 2,618 Pledged collateral (2) 32,945 32,945 42,433 42,433 Liabilities Short-term debt facilities $ 2,176,591 $ 2,176,591 $ 1,937,920 $ 1,937,920 Short-term debt - servicer advance financing 152,554 152,554 262,740 262,740 Accrued interest payable 60,655 60,655 42,528 42,528 Margin payable (3) 1,700 1,700 835 835 Guarantee obligation (3) 14,009 13,754 16,711 16,774 Contingent consideration (3) 28,484 28,484 — — Derivative liabilities 163,424 163,424 84,855 84,855 ABS issued at fair value 10,515,475 10,515,475 5,410,073 5,410,073 FHLBC long-term borrowings 1,999,999 1,999,999 1,999,999 1,999,999 Subordinate securities financing facility 183,520 184,666 — — Convertible notes, net 631,125 661,985 633,196 618,271 Trust preferred securities and subordinated notes, net 138,628 99,045 138,582 102,533 (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, 2019 and 2018 , we elected the fair value option for $333 million and $654 million of securities, respectively, $6.99 billion and $8.38 billion of residential loans (principal balance), respectively, $4.02 billion and $168 million of business purpose residential loans (principal balance), respectively, $1.43 billion and $2.13 billion of multifamily loans (principal balance), respectively, $70 million and $396 million of servicer advance investments, respectively, and $8 million and $25 million of excess MSRs, respectively. Additionally, during the year ended December 31, 2019, we elected the fair value option for $43 million of shared home appreciation options. We anticipate electing the fair value option for all future purchases of residential and business purpose residential loans that we intend to sell to third parties or transfer to securitizations, as well as 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, 2019 and December 31, 2018 , 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, 2019 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 7,714,745 $ — $ — $ 7,714,745 Business purpose residential loans 3,506,743 — — 3,506,743 Multifamily loans 4,408,524 — — 4,408,524 Trading securities 860,540 — — 860,540 Available-for-sale securities 239,334 — — 239,334 Servicer advance investments 169,204 — — 169,204 MSRs 42,224 — — 42,224 Excess MSRs 31,814 — — 31,814 Shared home appreciation options 45,085 — — 45,085 Derivative assets 35,701 6,531 19,020 10,150 Pledged collateral 32,945 32,945 — — FHLBC stock 43,393 — 43,393 — Guarantee asset 1,686 — — 1,686 Liabilities Contingent consideration $ 28,484 $ — $ — $ 28,484 Derivative liabilities 163,424 13,368 148,766 1,290 ABS issued 10,515,475 — — 10,515,475 December 31, 2018 Carrying 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 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, 2019 and December 31, 2018 . 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 Shared Home Appreciation Options (In Thousands) Beginning balance - December 31, 2018 $ 7,254,631 $ 141,258 $ 2,144,598 $ 1,118,612 $ 333,882 $ 300,468 $ 60,281 $ 27,312 $ — Acquisitions 7,092,866 2,639,615 2,162,386 332,593 26,539 69,610 868 7,762 44,243 Originations — 1,015,436 — — — — — — — Sales (5,141,886 ) (76,909 ) — (597,122 ) (110,069 ) — — — — Principal paydowns (1,609,220 ) (213,655 ) (28,543 ) (44,600 ) (39,704 ) (203,876 ) — — — Gains (losses) in net income, net 119,132 7,423 130,083 56,008 24,580 3,002 (18,925 ) (3,260 ) 842 Unrealized losses in OCI, net — — — — 4,106 — — — — Other settlements, net (1) (778 ) (6,425 ) — (4,951 ) — — — — — Ending balance - December 31, 2019 $ 7,714,745 $ 3,506,743 $ 4,408,524 $ 860,540 $ 239,334 $ 169,204 $ 42,224 $ 31,814 $ 45,085 Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (continued) Assets Liabilities Guarantee Asset Derivatives (2) Contingent Consideration ABS Issued (In Thousands) Beginning balance - December 31, 2018 $ 2,618 $ 2,181 $ — $ 5,410,073 Acquisitions — — 25,267 6,098,462 Principal paydowns — — — (1,112,437 ) Gains (losses) in net income, net (932 ) 62,220 3,217 119,377 Other settlements, net (1) — (55,541 ) — — Ending balance - December 31, 2019 $ 1,686 $ 8,860 $ 28,484 $ 10,515,475 Assets (In Thousands) Residential Loans Business Purpose Residential Loans Multifamily Loans Trading Securities AFS Securities Servicer Advance Investments MSRs Excess MSRs Guarantee Asset 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 gains in OCI, net — — — — (34,484 ) — — — — Other settlements, net (1) (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 Liabilities (In Thousands) Derivatives (2) ABS Issued 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 (1) 1,681 — Ending balance - December 31, 2018 $ 2,181 $ 5,410,073 (1) Other settlements, net for residential and business purpose 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 or interest rate lock commitments at the time loans are acquired to the basis of residential and single-family rental loans. Other settlements, net for trading securities relates to the consolidation of Freddie Mac K-Series securitization entities. (2) For the purpose of this presentation, derivative assets and liabilities, which consist of loan purchase commitments, forward sale commitments, and interest rate lock commitments, are presented on a net basis. 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, 2019 , 2018 , and 2017 . Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the years ended December 31, 2019 , 2018 , and 2017 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, 2019 , 2018 , and 2017 Included in Net Income Included in Net Income Years Ended December 31, (In Thousands) 2019 2018 2017 Assets Residential loans at Redwood $ 67,470 $ (17,757 ) $ 523 Residential loans at consolidated Sequoia entities (10,062 ) 24,799 17,727 Residential loans at consolidated Freddie Mac SLST entities 63,583 21,295 — Business purpose residential loans 14,603 445 — Single-family rental loans at consolidated CAFL entities (14,681 ) — — Multifamily loans at consolidated Freddie Mac K-Series entities 130,083 46,555 — Trading securities 18,865 (12,256 ) 28,612 Available-for-sale securities — (89 ) (1,011 ) Servicer advance investments 3,001 (702 ) — MSRs (11,957 ) 1,942 1,277 Excess MSRs (3,260 ) 1,824 — Shared home appreciation options 842 — — Loan purchase and interest rate lock commitments 10,190 2,913 3,243 Loan forward sale commitments — — 2,177 Other assets - Guarantee asset (932 ) (251 ) (1,223 ) Liabilities Loan purchase commitments $ (1,290 ) $ (732 ) $ (3,706 ) Contingent consideration (3,217 ) — — ABS issued (130,421 ) (71,468 ) (29,187 ) The following table presents information on assets recorded at fair value on a non-recurring basis at December 31, 2019 and December 31, 2018 . 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, 2019 and December 31, 2018 . Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Gain (Loss) for Year Ended December 31, 2019 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2019 Assets REO $ 4,051 $ — $ — $ 4,051 $ (1,363 ) Gain (Loss) for Year Ended December 31, 2018 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2018 Assets REO $ 2,225 $ — $ — $ 2,225 $ (131 ) 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, 2019 , 2018 , and 2017 . Table 5.6 – Market Valuation Gains and Losses, Net Years Ended December 31, (In Thousands) 2019 2018 2017 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ 3,267 $ 23,144 $ 31,493 Residential loan purchase and forward sale commitments 60,260 (1,336 ) 37,880 Single-family rental loans held-for-sale, at fair value 15,043 375 — Single-family rental loan purchase and interest rate lock commitments 1,961 78 — Residential bridge loans 4,518 — — Risk management derivatives, net (15,723 ) 34,739 (17,529 ) Total mortgage banking activities, net (1) $ 69,326 $ 57,000 $ 51,844 Investment Fair Value Changes, Net Residential loans held-for-investment at Redwood $ 58,891 $ (29,573 ) $ (5,765 ) Single-family rental loans held-for-investment 272 — — Residential bridge loans held-for-investment (2,139 ) (29 ) — Trading securities 56,046 (8,055 ) 39,526 Commercial loans held-for-sale — — 300 Servicer advance investments 3,001 (701 ) — Excess MSRs (3,260 ) 1,823 — Shared home appreciation options 842 — — REO (1,045 ) — — Net investments in Legacy Sequoia entities (2) (1,545 ) (1,016 ) (8,027 ) Net investments in Sequoia Choice entities (2) 6,947 443 (323 ) Net investments in Freddie Mac SLST entities (2) 27,206 1,271 — Net investments in Freddie Mac K-Series entities (2) 21,430 931 — Net investments in CAFL entities (2) (3,636 ) — — Other investments (341 ) (434 ) (1,484 ) Risk management derivatives, net (127,169 ) 9,740 (12,842 ) Impairments on AFS securities — (89 ) (1,011 ) Total investment fair value changes, net $ 35,500 $ (25,689 ) $ 10,374 Other Income MSRs $ (18,856 ) $ (2,508 ) $ (10,166 ) Risk management derivatives, net 8,595 (4,734 ) (568 ) Gain on re-measurement of 5 Arches investment 2,441 — — Total other income (3) $ (7,820 ) $ (7,242 ) $ (10,734 ) Total Market Valuation Gains, Net $ 97,006 $ 24,069 $ 51,484 (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 investments at the consolidated VIEs. (3) Other income 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, 2019 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 $ 2,113,977 Prepayment rate (annual CPR) 20 - 20 % 20 % Whole loan spread to TBA price $ 0.53 - $ 1.63 $ 1.62 Whole loan spread to swap rate 95 - 375 bps 170 bps Jumbo hybrid loans 326,336 Prepayment rate (annual CPR) 15 - 15 % 15 % Whole loan spread to swap rate 80 - 345 bps 134 bps Jumbo loans committed to sell 207,864 Whole loan committed sales price $ 101.85 - $ 102.96 $ 102.41 Loans held by Legacy Sequoia (1) 407,890 Liability price N/A N/A Loans held by Sequoia Choice (1) 2,291,463 Liability price N/A N/A Loans held by Freddie Mac SLST (1) 2,367,215 Liability price N/A N/A Business purpose residential loans: Single-family rental loans 569,185 Senior credit spread 100 - 105 bps 103 bps Subordinate credit spread 135 - 1,400 bps 299 bps Senior credit support 33 - 40 % 34 % IO discount rate 6 - 9 % 8 % Prepayment rate (annual CPR) 5 - 5 % 5 % Single-family rental loans held by CAFL 2,192,552 Liability price N/A N/A Residential bridge loans 745,006 Discount rate 6 10 % 7 % Multifamily loans held by Freddie Mac K-Series (1) 4,408,524 Liability price N/A N/A Trading and AFS securities 1,099,874 Discount rate 3 - 40 % 5 % Prepayment rate (annual CPR) 5 - 50 % 16 % Default rate — - 7 % 1 % Loss severity — - 30 % 5 % Servicer advance investments 169,204 Discount rate 5 - 5 % 5 % Prepayment rate (annual CPR) 8 - 15 % 14 % Expected remaining life (2) 2 - 2 year 2 year Mortgage servicing income 8 - 13 bps 10 bps MSRs 42,224 Discount rate 11 - 12 % 11 % Prepayment rate (annual CPR) 5 - 44 % 11 % Per loan annual cost to service $ 82 - $ 82 $ 82 Excess MSRs 31,814 Discount rate 11 - 16 % 14 % Prepayment rate (annual CPR) 9 - 14 % 11 % Excess mortgage servicing amount 8 - 18 bps 13 bps Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments (continued) December 31, 2019 Fair Value Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average Assets (continued) Shared home appreciation options $ 45,085 Discount rate 11 - 11 % 11 % Prepayment rate (annual CPR) 10 - 30 % 23 % Home price appreciation 3 - 3 % 3 % Guarantee asset 1,686 Discount rate 11 - 11 % 11 % Prepayment rate (annual CPR) 15 - 15 % 15 % REO 4,051 Loss severity 17 - 55 % 26 % Residential loan purchase commitments, net 8,419 MSR multiple 0.7 - 4.3 x 2.8 x Pull-through rate 8 - 100 % 75 % Whole loan spread to TBA price $ 0.53 - $ 1.63 $ 1.62 Whole loan spread to swap rate - fixed rate 115 - 375 bps 253 bps Prepayment rate (annual CPR) 15 - 20 % 20 % Whole loan spread to swap rate - hybrid 115 - 155 bps 131 bps Single-family rental interest rate lock commitments 440 Senior credit spread 105 - 105 bps 105 bps Subordinate credit spread 140 - 1,400 bps 299 bps Senior credit support 33 - 33 % 33 % IO discount rate 6 - 7 % 7 % Prepayment rate (annual CPR) 5 - 5 % 5 % Pull-through rate 100 - 100 % 100 % Liabilities ABS issued (1) At consolidated Sequoia entities 2,439,663 Discount rate 3 - 30 % 4 % Prepayment rate (annual CPR) 17 - 43 % 26 % Default rate — - 7 % — % Loss severity — - 65 % 1 % At consolidated Freddie Mac SLST entities 1,918,322 Discount rate 3 - 13 % 3 % Prepayment rate (annual CPR) 6 - 6 % 6 % Default rate 17 - 18 % 17 % Loss severity 30 - 30 % 30 % At consolidated Freddie Mac K-Series entities (4) 4,156,239 Discount rate 1 - 9 % 3 % Non-IO prepayment rate (annual CPR) — - — % — % IO prepayment rate (annual CPY/CPP) — - 100 % 94 % At consolidated CAFL entities (4) 2,001,251 Discount rate 2 - 30 % 4 % Prepayment rate (annual CPR) — - 5 % — % Contingent consideration 28,484 Discount rate 23 - 23 % 23 % Probability of outcomes (3) 100 - 100 % 100 % Footnotes to Table 5.7 (1) The fair value of the loans held by consolidated entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable in accordance with accounting guidance for collateralized financing entities. At December 31, 2019 , the fair value of securities we owned at the consolidated Sequoia, Freddie Mac SLST, Freddie Mac K-Series and CAFL entities was $264 million , $449 million , $252 million , and $191 million , respectively. (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). (3) Represents the probability of a full payout of contingent purchase consideration. (4) As a market convention, certain securities are priced to a no-loss yield and therefore do not include default and loss severity assumptions. 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. Significant 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). Significant pricing inputs obtained from market securitization activity include indicative spreads to indexed TBA prices for senior MBS and indexed swap rates for subordinate MBS, 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, prepayment speed, or credit support assumptions. Residential loans, business purpose residential loans, 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 allows 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. Estimated fair values for our single-family rental loans are determined using models that incorporate various inputs, including pricing information from market comparable securitizations. Certain significant inputs in these models are considered unobservable and are therefore Level 3 in nature. Significant pricing 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, prepayment speed, or credit support 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, 2019 , we received dealer price indications on 83% of our securities, representing 94% of our carrying value. In the aggregate, our internal valuations of the securities for which we received dealer price indications were within 1% of the aggregate average dealer valuations. Once we receive the price indications from dealers, they are compared to other relevant market inputs, such as actual or comparable trades, and the results of our discounted cash flow analysis. In circumstances where relevant market inputs cannot be obtained, increased reliance on discounted cash flow analysis and management judgment are required to estimate fair value. Derivative assets and liabilities Our derivative instruments include swaps, swaptions, TBAs, interest rate 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 interest rate 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, IRLC 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 and IRLCs are estimated based on the probability that the mortgage loan will be purchased or originated (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 ("mortgage servicing income"). 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 income, 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 income. MSRs MSRs include the rights to service jumbo 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 uno

Residential Loans

Residential Loans	12 Months Ended
	Dec. 31, 2019
Receivables [Abstract]
Residential Loans	Residential Loans We acquire residential loans from third-party originators and may sell or securitize these loans or hold them for investment. The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at December 31, 2019 and December 31, 2018 . Table 6.1 – Classifications and Carrying Values of Residential Loans December 31, 2019 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia Choice SLST Total Held-for-sale at fair value $ 536,385 $ — $ — $ — $ 536,385 Held-for-investment at fair value 2,111,897 407,890 2,291,463 2,367,215 7,178,465 Total Residential Loans $ 2,648,282 $ 407,890 $ 2,291,463 $ 2,367,215 $ 7,714,850 December 31, 2018 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia Choice SLST Total Held-for-sale at fair value $ 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 At December 31, 2019 , we owned mortgage servicing rights associated with $2.03 billion (principal balance) of consolidated residential loans purchased from third-party originators. The value of these MSRs is included in the carrying value of the associated loans on our consolidated balance sheets. We contract with licensed sub-servicers that perform servicing functions for these loans. Residential Loans Held-for-Sale At Fair Value At December 31, 2019 , we owned 669 loans held-for-sale at fair value with an aggregate unpaid principal balance of $525 million and a fair value of $536 million , compared to 1,484 loans with an aggregate unpaid principal balance of $1.03 billion and a fair value of $1.05 billion at December 31, 2018 . At December 31, 2019 , one of these loans with a fair value of $0.6 million and an unpaid principal balance of $0.7 million was greater than 90 days delinquent and no ne of these loans were in foreclosure. At December 31, 2018 , one of these loans with a fair value of $0.6 million and an unpaid principal balance of $0.7 million was greater than 90 days delinquent and no ne of these loans were in foreclosure. During the years ended December 31, 2019 and 2018 , we purchased $5.73 billion and $7.07 billion (principal balance) of loans, respectively, for which we elected the fair value option, and we sold $6.07 billion and $7.11 billion (principal balance) of loans, respectively, for which we recorded net market valuation gain s of $3 million and $23 million , respectively, through Mortgage banking activities, net on our consolidated statements of income. Residential Loans Held-for-Investment at Fair Value At Redwood At December 31, 2019 , we owned 2,940 held-for-investment loans at Redwood with an aggregate unpaid principal balance of $2.05 billion and a fair value of $2.11 billion , compared to 3,296 loans with an aggregate unpaid principal balance of $2.39 billion and a fair value of $2.38 billion at December 31, 2018 . At December 31, 2019 , two of these loans with a total fair value of $1 million and an unpaid principal balance of $2 million were greater than 90 days delinquent and no ne of these loans were in foreclosure. At December 31, 2018 , two of these loans with an aggregate fair value and unpaid principal balance of $1 million were greater than 90 days delinquent and no ne of these loans were in foreclosure. During the years ended December 31, 2019 and 2018 , we transferred loans with a fair value of $69 million and $286 million , respectively, from held-for-sale to held-for-investment. During the years ended December 31, 2019 and 2018 , we transferred loans with a fair value of $23 million and $16 million , respectively, from held-for-investment to held-for-sale. During the year s ended December 31, 2019 and 2018 , we recorded a net market valuation gain of $59 million and a net market valuation loss of $30 million , respectively, on residential loans held-for-investment at fair value through Investment fair value changes, net on our consolidated statements of income. The outstanding loans held-for-investment at Redwood at December 31, 2019 were prime-quality, first-lien loans, of which 96% were originated between 2013 and 2019, 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, 2019 , these loans were comprised of 89% fixed-rate loans with a weighted average coupon of 4.14% , and the remainder were hybrid or ARM loans with a weighted average coupon of 4.16% . At Consolidated Legacy Sequoia Entities At December 31, 2019 , we consolidated 2,198 held-for-investment loans at consolidated Legacy Sequoia entities, with an aggregate unpaid principal balance of $425 million and a fair value of $408 million , as compared to 2,641 loans at December 31, 2018 , with an aggregate unpaid principal balance of $545 million and a fair value of $520 million . At origination, the weighted average FICO score of borrowers backing these loans was 727 , the weighted average LTV ratio of these loans was 65% , and the loans were nearly all first lien and prime-quality. At December 31, 2019 and December 31, 2018 , the unpaid principal balance of loans at consolidated Sequoia entities delinquent greater than 90 days was $10 million and $14 million , respectively, of which the unpaid principal balance of loans in foreclosure was $4 million and $5 million , respectively. During the years ended December 31, 2019 and 2018 , we recorded net market valuation gain s of $5 million and $37 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, 2019 , we consolidated 3,156 held-for-investment loans at consolidated Sequoia Choice entities, with an aggregate unpaid balance of $2.24 billion and a fair value of $2.29 billion , as compared to 2,800 loans a t December 31, 2018 , with an aggregate unpaid principal balance of $2.04 billion and a fair value of $2.08 billion . 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, 2019 , nine of these loans with an aggregate unpaid principal balance of $7 million were greater than 90 days delinquent and three of these loans with an aggregate unpaid principal balance of $2 million were in foreclosure. At December 31, 2018 , three of these loans with an aggregate unpaid principal balance of $2 million were greater than 90 days delinquent and none of these loans were in foreclosure. During the years ended December 31, 2019 and 2018 , we transferred loans with a fair value of $1.08 billion and $1.78 billion , respectively, from held-for-sale to held-for-investment associated with Choice securitizations. During the years ended December 31, 2019 and 2018 , we recorded net market valuation loss es of $15 million and $13 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 Entities Beginning in the fourth quarter of 2018, we invested in subordinate securities issued by certain Freddie Mac SLST securitization trusts and were required to consolidate the underlying seasoned re-performing and non-performing residential loans owned at these entities for financial reporting purposes in accordance with GAAP. At securitization, each of these mortgage loans was a fully amortizing, fixed- or step-rate, first-lien loan that had been modified. At December 31, 2019 , we consolidated 14,502 held-for-investment loans at the consolidated Freddie Mac SLST entities, with an aggregate unpaid principal balance of $2.43 billion and a fair value of $2.37 billion , as compared to 7,900 loans a t December 31, 2018 , with an aggregate unpaid principal balance of $1.31 billion and a fair value of $1.22 billion . At securitization, the weighted average FICO score of borrowers backing these loans was 600 and the weighted average LTV ratio of these loans was 73% . At December 31, 2019 , 587 of these loans with an aggregate unpaid principal balance of $135 million were greater than 90 days delinquent and 208 of these loans with an aggregate unpaid principal balance of $33 million were in foreclosure. At December 31, 2018 , 306 of these loans with aggregate unpaid principal balance of $51 million were greater than 90 days delinquent and none of these loans were in foreclosure. During the years ended December 31, 2019 and 2018 , we recorded net market valuation gain s of $64 million and $21 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 the Freddie Mac SLST securitizations . The net impact to our income statement associated with our economic investment in the Freddie Mac SLST securitization entities is presented in Note 5. Residential Loan Characteristics The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2019 and December 31, 2018 . Table 6.2 – Geographic Concentration of Residential Loans December 31, 2019 Geographic Concentration Held-for-Sale Held-for- Held-for- Investment at Sequoia Choice Held-for-Investment at Freddie Mac SLST Held-for- California 36 % 18 % 35 % 14 % 45 % Washington 7 % 1 % 7 % 2 % 5 % Texas 6 % 6 % 9 % 3 % 8 % Colorado 6 % 3 % 4 % — % 4 % Florida 4 % 14 % 5 % 10 % 5 % New Jersey 2 % 4 % 2 % 7 % 2 % New York 1 % 10 % 4 % 10 % 4 % Other states (none greater than 5%) 38 % 44 % 34 % 54 % 27 % Total 100 % 100 % 100 % 100 % 100 % December 31, 2018 Geographic Concentration Held-for-Sale Held-for- Held-for- 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 % 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, 2019 and December 31, 2018 . Table 6.3 – Product Types and Characteristics of Residential Loans December 31, 2019 (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 3.50 % to 4.50% 2043-09 - 2046-01 $ 2,423 $ — $ — $ 251 to $500 51 3.25 % to 5.63% 2041-01 - 2048-08 20,781 — — $ 501 to $750 97 2.88 % to 5.13% 2041-09 - 2048-08 61,708 1,364 — $ 751 to $1,000 90 2.88 % to 6.00% 2043-12 - 2048-08 77,550 1,784 971 over $1,000 49 3.00 % to 5.50% 2040-10 - 2048-09 64,937 1,428 — 299 227,399 4,576 971 Fixed loans $ — to $250 38 2.90 % to 4.80% 2026-02 - 2047-12 6,549 223 — $ 251 to $500 676 2.75 % to 6.00% 2026-01 - 2049-04 287,984 — — $ 501 to $750 1,091 2.80 % to 6.75% 2026-04 - 2049-05 669,159 2,325 614 $ 751 to $1,000 519 2.75 % to 6.63% 2026-01 - 2049-04 447,499 1,895 — over $1,000 317 3.00 % to 5.88% 2031-04 - 2049-05 414,188 3,202 — 2,641 1,825,379 7,645 614 Total HFI at Redwood: 2,940 $ 2,052,778 $ 12,221 $ 1,585 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,685 1.38 % to 6.00% 2020-01 - 2035-11 $ 169,230 $ 5,135 $ 3,109 $ 251 to $500 345 1.25 % to 5.63% 2022-01 - 2036-05 120,261 6,149 3,835 $ 501 to $750 87 1.63 % to 4.38% 2027-04 - 2035-02 53,811 3,628 1,211 $ 751 to $1,000 45 1.63 % to 4.38% 2027-11 - 2036-03 37,756 827 1,648 over $1,000 24 1.63 % to 4.00% 2027-12 - 2035-04 38,341 — — 2,186 419,399 15,739 9,803 Hybrid ARM loans: $ — to $250 2 4.25 % to 4.50% 2033-09 - 2033-10 465 — — $ 251 to $500 7 3.63 % to 5.13% 2033-07 - 2034-06 2,494 — — $ 501 to $750 2 4.50 % to 4.50% 2033-08 - 2033-08 1,181 — — over $1,000 1 4.50 % to 4.50% 2033-09 - 2033-09 1,291 — — 12 5,431 — — Total HFI at Legacy Sequoia: 2,198 $ 424,830 $ 15,739 $ 9,803 Held-for-Investment at Sequoia Choice: Fixed loans: $ — to $250 56 2.75 % to 5.50% 2038-02 - 2049-07 $ 10,743 $ — $ — $ 251 to $500 420 3.13 % to 6.13% 2037-12 - 2049-09 184,455 2,282 — $ 501 to $750 1,528 3.13 % to 6.75% 2037-02 - 2049-09 940,914 13,020 2,366 $ 751 to $1,000 835 3.25 % to 6.50% 2035-04 - 2049-09 719,609 7,856 3,297 over $1,000 317 3.50 % to 5.88% 2038-01 - 2049-09 384,959 1,108 1,093 Total HFI at Sequoia Choice: 3,156 $ 2,240,680 $ 24,266 $ 6,756 Table 6.3 – Product Types and Characteristics of Residential Loans (continued) December 31, 2019 (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 11,639 2.00 % to 11.00% 2019-11 - 2059-10 $ 1,501,538 $ 477,592 $ 79,632 $ 251 to $500 2,805 2.00 % to 7.75% 2033-08 - 2058-11 894,125 297,732 52,920 $ 501 to $750 57 2.00 % to 6.75% 2043-08 - 2058-07 31,350 8,787 2,623 over $1,000 1 4.00 % to 4.00% 2056-03 - 2056-03 1,021 1,021 — Total HFI at Freddie Mac SLST: 14,502 $ 2,428,034 $ 785,132 $ 135,175 Held-for-Sale: Hybrid ARM loans $ — to $250 7 5.20 % to 7.00% 2047-08 2048-12 $ 1,254 $ — $ — $ 251 to $500 1 4.25 % to 4.25% 2049-08 - 2049-08 432 — — $ 501 to $750 52 3.00 % to 5.50% 2047-04 - 2049-12 33,611 — — $ 751 to $1,000 33 3.25 % to 4.88% 2047-04 - 2049-11 28,573 — — over $1,000 22 3.25 % to 5.25% 2048-06 - 2049-11 28,013 — — 115 91,883 — — Fixed loans $ — to $250 2 3.88 % to 7.13% 2034-08 - 2049-07 481 — — $ 251 to $500 13 3.63 % to 6.50% 2048-01 - 2050-01 6,234 — — $ 501 to $750 301 3.20 % to 5.88% 2034-05 - 2050-01 186,251 — 747 $ 751 to $1,000 161 3.50 % to 6.50% 2034-07 - 2050-01 139,786 — — over $1,000 77 3.20 % to 5.00% 2034-08 - 2050-01 100,293 1,650 — 554 433,045 1,650 747 Total Held-for-Sale 669 $ 524,928 $ 1,650 $ 747 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 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 7,900 1,310,974 198,945 50,528 Held-for-Sale: 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 1,484 $ 1,034,284 $ 559 $ 747 (1) We originate business purpose residential loans, including single-family rental loans and residential bridge loans. This origination activity commenced in connection with our acquisition of 5 Arches in March 2019. Business Purpose Residential Loan Originations During the period from March 1, 2019 to December 31, 2019 , we funded $1.02 billion of business purpose residential loans, of which $56 million of residential bridge loans and $20 million of single-family rental loans were sold to third parties. The remaining business purpose residential loans were transferred to our investment portfolio (residential bridge loans and certain single-family rental loans), or retained in our mortgage banking business (single-family rental loans) for future securitizations. Prior to the transfer of residential bridge loans to our investment portfolio, we recorded a net market valuation gain of $5 million on these loans through Mortgage banking activities, net on our consolidated statements of income for the period from March 1, 2019 to December 31, 2019 , respectively. Market valuation adjustments on our single-family rental loans are also recorded in Mortgage banking activities, net on our consolidated statements of income prior to their sale or transfer to our investment portfolio. Additionally, during the period from March 1, 2019 to December 31, 2019 , we recorded loan origination fee income associated with business purpose loans of $16 million through Mortgage banking activities, net on our consolidated statements of income. The following table summarizes the classifications and carrying values of the business purpose residential loans owned at Redwood at December 31, 2019 and December 31, 2018. Table 7.1 – Classifications and Carrying Values of Business Purpose Residential Loans December 31, 2019 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 331,565 — $ — $ 331,565 Held-for-investment at fair value 237,620 2,192,552 745,006 3,175,178 Total Business Purpose Residential Loans $ 569,185 $ 2,192,552 $ 745,006 $ 3,506,743 December 31, 2018 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 28,460 $ — $ — $ 28,460 Held-for-investment at fair value — — 112,798 112,798 Total Business Purpose Residential Loans $ 28,460 $ — $ 112,798 $ 141,258 Business Purpose Residential Loans Held-for-Sale at Fair Value Single-Family Rental Loans At December 31, 2019 , we owned 201 single-family rental loans with an aggregate unpaid principal balance of $322 million and a fair value of $332 million , as compared to 11 loans at December 31, 2018 with an aggregate unpaid principal balance of $28 million and a fair value of $28 million . At December 31, 2019 , two of these loans with an aggregate unpaid principal balance and fair value of $2 million were greater than 90 days delinquent, of which one of these loans with an unpaid principal balance of $0.1 million was in foreclosure. At December 31, 2018 , none of these loans were greater than 90 days delinquent or in foreclosure. During the period from March 1, 2019 to December 31, 2019 , we originated $514 million of single-family rental loans. Additionally, we acquired $407 million of single-family rental loans as part of our acquisition of CoreVest in the fourth quarter of 2019. During the period from March 1, 2019 to December 31, 2019 , $238 million of single-family rental loans were transferred to our investment portfolio and financed with FHLB borrowings, and the remaining loans were retained in our mortgage banking business. During this same period, we transferred $394 million of single-family rental loans from held-for-sale to held-for-investment associated with a CAFL securitization and sold $20 million to third parties. During the first two months of 2019, prior to our acquisition of 5 Arches on March 1, 2019, we purchased $19 million of single-family rental loans from 5 Arches. During the year ended December 31, 2019 , we recorded a net market valuation gain of $13 million on single-family rental loans held-for-sale at fair value through Mortgage banking activities, net on our consolidated statements of income. The outstanding single-family rental loans held-for-sale at December 31, 2019 were first-lien, fixed-rate loans with original maturities of five , seven , or ten years. At December 31, 2019 , the weighted average coupon of our single-family rental loans was 4.96% and the weighted average remaining loan term was nine years . At origination, the weighted average LTV ratio of these loans was 69% and the weighted average debt service coverage ratio ("DSCR") was 1.43 times. Business Purpose Residential Loans Held-for-Investment at Fair Value Single-Family Rental Loans at Redwood At December 31, 2019 , we owned 107 single-family rental loans held-for-investment with an aggregate unpaid principal balance of $231 million and a fair value of $238 million . At December 31, 2019 , no ne of these loans were greater than 90 days delinquent or in foreclosure. During the year ended December 31, 2019 , we transferred loans with a fair value of $238 million from held-for-sale to held-for-investment. During the year ended December 31, 2019 , we recorded a net market valuation gain of $0.3 million on single-family rental loans held-for-investment at fair value through Investment fair value changes, net on our consolidated statements of income. The outstanding single-family rental loans held-for-investment at Redwood at December 31, 2019 were first-lien, fixed-rate loans with original maturities of five , seven , or ten years. At December 31, 2019 , the weighted average coupon of our single-family rental loans was 4.89% and the weighted average remaining loan term was seven years . At origination, the weighted average LTV ratio of these loans was 68% and the weighted average DSCR was 1.36 times. Single-Family Rental Loans at CAFL In conjunction with our acquisition of CoreVest in the fourth quarter of 2019, we consolidated the single-family rental loans owned at certain CAFL securitization entities. At December 31, 2019 , we consolidated 783 held-for-investment single-family rental loans at the consolidated CAFL entities, with an aggregate unpaid principal balance of $2.08 billion and a fair value of $2.19 billion . The outstanding single-family rental loans held-for-investment at CAFL at December 31, 2019 were first-lien, fixed-rate loans with original maturities of five , seven , or ten years. At December 31, 2019 , the weighted average coupon of our single-family rental loans was 5.70% and the weighted average remaining loan term was seven years . At origination, the weighted average LTV ratio of these loans was 68% and the weighted average DSCR was 1.35 times. At December 31, 2019 , 18 of these loans with an aggregate unpaid principal balance of $29 million were greater than 90 days delinquent and five of these loans with an aggregate unpaid principal balance of $9 million were in foreclosure. During the year ended December 31, 2019 , we recorded a net market valuation loss of $15 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 CAFL securitizations . The net impact to our income statement associated with our retained economic investment in the CAFL securitization entities is presented in Note 5. Additionally, as part of our acquisition of CoreVest during the year ended December 31, 2019 , we acquired REO with a fair value of $2 million related to loans at CAFL entities, which is included in Other assets on our consolidated balance sheets. Residential Bridge Loans At December 31, 2019 , we owned 2,653 residential bridge loans held-for-investment with an aggregate unpaid principal balance of $741 million and a fair value of $745 million as compared to 157 loans at December 31, 2018 with an aggregate unpaid principal balance of $112 million and a fair value of $113 million . As part of our credit risk management practices, our residential bridge loans are subject to individual risk assessment using an internal borrower and collateral quality evaluation framework. At December 31, 2019 , 31 loans with an aggregate fair value of $12 million and an unpaid principal balance of $14 million were in foreclosure, of which 15 of these loans with an aggregate fair value of $7 million and an unpaid principal balance of $9 million were greater than 90 days delinquent. At December 31, 2018 , seven loans with an aggregate fair value of $12 million were greater than 90 days delinquent and four of these loans with an aggregate fair value of $11 million were in foreclosure. During the year ended December 31, 2019 , we transferred three loans with a fair value of $8 million to REO, which is included in Other assets on our consolidated balance sheets. During the period from March 1, 2019 to December 31, 2019 , $448 million of newly originated residential bridge loans were transferred to our investment portfolio. Additionally, we acquired $375 million of residential bridge loans as part of our acquisition of CoreVest during the fourth quarter of 2019. During the first two months of 2019, prior to our acquisition of 5 Arches on March 1, 2019, we purchased $10 million of residential bridge loans from 5 Arches. During the year ended December 31, 2019 , we recorded a net market valuation loss of $2 million on residential bridge loans held-for-investment at fair value through Investment fair value changes, net on our consolidated statements of income. The outstanding residential bridge loans held-for-investment at December 31, 2019 were first lien, fixed-rate, interest-only loans with a weighted average coupon of 8.11% and original maturities of six to 24 months. At origination, the weighted average FICO score of borrowers backing these loans was 732 and the weighted average LTV ratio of these loans was 70% . At December 31, 2019 , we had a $173 million commitment to fund residential bridge loans. See Note 16 for additional information on this commitment. 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, 2019 . Table 7.2 – Geographic Concentration of Business Purpose Residential Loans December 31, 2019 Geographic Concentration Single-Family Rental Held-for-Sale Single-Family Rental Held-for-Investment at Redwood Single-Family Rental Held-for-Investment at CAFL Residential Bridge Florida 5 % — % 8 % 9 % Texas 19 % 12 % 15 % 3 % New Jersey 12 % 5 % 11 % 8 % New York 5 % 1 % 1 % 6 % California 2 % 1 % 7 % 21 % Utah — % — % — % 5 % Georgia 8 % — % 5 % 7 % Alabama 5 % — % 4 % 4 % Arkansas 6 % — % 2 % — % Maryland 6 % — % 2 % — % Illinois 1 % — % 5 % 3 % Other states (none greater than 5%) 31 % 81 % 40 % 34 % Total 100 % 100 % 100 % 100 % December 31, 2018 Geographic Concentration Single-Family Rental Held-for-Sale Single-Family Rental Held-for-Investment at Redwood Single-Family Rental Held-for-Investment at CAFL 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, 2019 . Table 7.3 – Product Types and Characteristics of Business Purpose Residential Loans December 31, 2019 (In Thousands) Loan Balance Number of Loans Interest Rate Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Single-Family Rental Held-for-Investment at Redwood: Fixed loans: $ 251 to $500 20 4.88 % to 7.47% 2024-02 - 2030-01 $ 7,925 $ — $ — $ 501 to $750 26 4.45 % to 7.25% 2023-09 - 2030-01 15,620 — — $ 751 to $1,000 16 4.91 % to 6.58% 2023-11 - 2029-09 13,616 — — over $1,000 45 3.93 % to 6.94% 2023-10 - 2030-01 194,050 — — Total SFR HFI at Redwood: 107 $ 231,211 $ — $ — Single-Family Rental Held-for-Investment at CAFL: Fixed loans: $ — to $250 2 5.46 % to 5.80% 2019-11 - 2021-09 $ 398 $ — $ — $ 251 to $500 56 4.92 % to 7.05% 2020-03 - 2029-10 $ 25,643 $ 1,306 $ — $ 501 to $750 148 4.75 % to 7.31% 2020-03 - 2029-10 91,414 1,259 1,990 $ 751 to $1,000 98 4.62 % to 7.23% 2020-03 - 2029-10 85,472 1,639 879 over $1,000 479 4.31 % to 7.57% 2019-12 - 2029-11 1,875,287 18,567 26,170 Total SFR HFI at CAFL: 783 $ 2,078,214 $ 22,771 $ 29,039 Single-Family Rental Held-for-Sale: Fixed loans: $ — to $250 85 5.50 % to 7.63% 2027-03 - 2050-01 $ 10,506 $ — $ 130 $ 251 to $500 9 4.94 % to 6.00% 2024-11 - 2050-01 3,708 — — $ 501 to $750 21 4.55 % to 5.96% 2024-01 - 2030-01 13,335 — — $ 751 to $1,000 13 5.00 % to 5.93% 2024-01 - 2030-01 11,676 — — over $1,000 73 4.35 % to 6.28% 2024-01 - 2030-01 282,411 — 1,688 Total Single-Family Rental HFS: 201 $ 321,636 $ — $ 1,818 Residential Bridge: Fixed loans: $ — to $250 2,207 6.53 % to 12.00% 2019-07 - 2022-01 $ 197,449 $ 1,447 $ 369 $ 251 to $500 198 6.99 % to 13.00% 2019-10 - 2022-01 71,361 2,811 675 $ 501 to $750 71 6.99 % to 9.99% 2019-11 - 2021-10 42,862 2,072 508 $ 751 to $1,000 40 7.28 % to 10.00% 2018-10 - 2022-01 34,646 1,771 2,443 over $1,000 137 5.79 % to 10.25% 2019-11 - 2022-01 394,914 31,452 4,994 Total Residential Bridge: 2,653 $ 741,232 $ 39,553 $ 8,989 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 Held-for-Sale: 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 HFS: 11 $ 27,566 $ — $ — Residential Bridge: Fixed loans: $ — to $250 50 8.00 % to 12.00% 2018-07 - 2020-05 $ 7,941 $ 262 $ 695 $ 251

Business Purpose Residential Lo

Business Purpose Residential Loans	12 Months Ended
	Dec. 31, 2019
Receivables [Abstract]
Business Purpose 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, 2019 and December 31, 2018 . Table 6.1 – Classifications and Carrying Values of Residential Loans December 31, 2019 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia Choice SLST Total Held-for-sale at fair value $ 536,385 $ — $ — $ — $ 536,385 Held-for-investment at fair value 2,111,897 407,890 2,291,463 2,367,215 7,178,465 Total Residential Loans $ 2,648,282 $ 407,890 $ 2,291,463 $ 2,367,215 $ 7,714,850 December 31, 2018 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia Choice SLST Total Held-for-sale at fair value $ 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 At December 31, 2019 , we owned mortgage servicing rights associated with $2.03 billion (principal balance) of consolidated residential loans purchased from third-party originators. The value of these MSRs is included in the carrying value of the associated loans on our consolidated balance sheets. We contract with licensed sub-servicers that perform servicing functions for these loans. Residential Loans Held-for-Sale At Fair Value At December 31, 2019 , we owned 669 loans held-for-sale at fair value with an aggregate unpaid principal balance of $525 million and a fair value of $536 million , compared to 1,484 loans with an aggregate unpaid principal balance of $1.03 billion and a fair value of $1.05 billion at December 31, 2018 . At December 31, 2019 , one of these loans with a fair value of $0.6 million and an unpaid principal balance of $0.7 million was greater than 90 days delinquent and no ne of these loans were in foreclosure. At December 31, 2018 , one of these loans with a fair value of $0.6 million and an unpaid principal balance of $0.7 million was greater than 90 days delinquent and no ne of these loans were in foreclosure. During the years ended December 31, 2019 and 2018 , we purchased $5.73 billion and $7.07 billion (principal balance) of loans, respectively, for which we elected the fair value option, and we sold $6.07 billion and $7.11 billion (principal balance) of loans, respectively, for which we recorded net market valuation gain s of $3 million and $23 million , respectively, through Mortgage banking activities, net on our consolidated statements of income. Residential Loans Held-for-Investment at Fair Value At Redwood At December 31, 2019 , we owned 2,940 held-for-investment loans at Redwood with an aggregate unpaid principal balance of $2.05 billion and a fair value of $2.11 billion , compared to 3,296 loans with an aggregate unpaid principal balance of $2.39 billion and a fair value of $2.38 billion at December 31, 2018 . At December 31, 2019 , two of these loans with a total fair value of $1 million and an unpaid principal balance of $2 million were greater than 90 days delinquent and no ne of these loans were in foreclosure. At December 31, 2018 , two of these loans with an aggregate fair value and unpaid principal balance of $1 million were greater than 90 days delinquent and no ne of these loans were in foreclosure. During the years ended December 31, 2019 and 2018 , we transferred loans with a fair value of $69 million and $286 million , respectively, from held-for-sale to held-for-investment. During the years ended December 31, 2019 and 2018 , we transferred loans with a fair value of $23 million and $16 million , respectively, from held-for-investment to held-for-sale. During the year s ended December 31, 2019 and 2018 , we recorded a net market valuation gain of $59 million and a net market valuation loss of $30 million , respectively, on residential loans held-for-investment at fair value through Investment fair value changes, net on our consolidated statements of income. The outstanding loans held-for-investment at Redwood at December 31, 2019 were prime-quality, first-lien loans, of which 96% were originated between 2013 and 2019, 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, 2019 , these loans were comprised of 89% fixed-rate loans with a weighted average coupon of 4.14% , and the remainder were hybrid or ARM loans with a weighted average coupon of 4.16% . At Consolidated Legacy Sequoia Entities At December 31, 2019 , we consolidated 2,198 held-for-investment loans at consolidated Legacy Sequoia entities, with an aggregate unpaid principal balance of $425 million and a fair value of $408 million , as compared to 2,641 loans at December 31, 2018 , with an aggregate unpaid principal balance of $545 million and a fair value of $520 million . At origination, the weighted average FICO score of borrowers backing these loans was 727 , the weighted average LTV ratio of these loans was 65% , and the loans were nearly all first lien and prime-quality. At December 31, 2019 and December 31, 2018 , the unpaid principal balance of loans at consolidated Sequoia entities delinquent greater than 90 days was $10 million and $14 million , respectively, of which the unpaid principal balance of loans in foreclosure was $4 million and $5 million , respectively. During the years ended December 31, 2019 and 2018 , we recorded net market valuation gain s of $5 million and $37 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, 2019 , we consolidated 3,156 held-for-investment loans at consolidated Sequoia Choice entities, with an aggregate unpaid balance of $2.24 billion and a fair value of $2.29 billion , as compared to 2,800 loans a t December 31, 2018 , with an aggregate unpaid principal balance of $2.04 billion and a fair value of $2.08 billion . 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, 2019 , nine of these loans with an aggregate unpaid principal balance of $7 million were greater than 90 days delinquent and three of these loans with an aggregate unpaid principal balance of $2 million were in foreclosure. At December 31, 2018 , three of these loans with an aggregate unpaid principal balance of $2 million were greater than 90 days delinquent and none of these loans were in foreclosure. During the years ended December 31, 2019 and 2018 , we transferred loans with a fair value of $1.08 billion and $1.78 billion , respectively, from held-for-sale to held-for-investment associated with Choice securitizations. During the years ended December 31, 2019 and 2018 , we recorded net market valuation loss es of $15 million and $13 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 Entities Beginning in the fourth quarter of 2018, we invested in subordinate securities issued by certain Freddie Mac SLST securitization trusts and were required to consolidate the underlying seasoned re-performing and non-performing residential loans owned at these entities for financial reporting purposes in accordance with GAAP. At securitization, each of these mortgage loans was a fully amortizing, fixed- or step-rate, first-lien loan that had been modified. At December 31, 2019 , we consolidated 14,502 held-for-investment loans at the consolidated Freddie Mac SLST entities, with an aggregate unpaid principal balance of $2.43 billion and a fair value of $2.37 billion , as compared to 7,900 loans a t December 31, 2018 , with an aggregate unpaid principal balance of $1.31 billion and a fair value of $1.22 billion . At securitization, the weighted average FICO score of borrowers backing these loans was 600 and the weighted average LTV ratio of these loans was 73% . At December 31, 2019 , 587 of these loans with an aggregate unpaid principal balance of $135 million were greater than 90 days delinquent and 208 of these loans with an aggregate unpaid principal balance of $33 million were in foreclosure. At December 31, 2018 , 306 of these loans with aggregate unpaid principal balance of $51 million were greater than 90 days delinquent and none of these loans were in foreclosure. During the years ended December 31, 2019 and 2018 , we recorded net market valuation gain s of $64 million and $21 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 the Freddie Mac SLST securitizations . The net impact to our income statement associated with our economic investment in the Freddie Mac SLST securitization entities is presented in Note 5. Residential Loan Characteristics The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2019 and December 31, 2018 . Table 6.2 – Geographic Concentration of Residential Loans December 31, 2019 Geographic Concentration Held-for-Sale Held-for- Held-for- Investment at Sequoia Choice Held-for-Investment at Freddie Mac SLST Held-for- California 36 % 18 % 35 % 14 % 45 % Washington 7 % 1 % 7 % 2 % 5 % Texas 6 % 6 % 9 % 3 % 8 % Colorado 6 % 3 % 4 % — % 4 % Florida 4 % 14 % 5 % 10 % 5 % New Jersey 2 % 4 % 2 % 7 % 2 % New York 1 % 10 % 4 % 10 % 4 % Other states (none greater than 5%) 38 % 44 % 34 % 54 % 27 % Total 100 % 100 % 100 % 100 % 100 % December 31, 2018 Geographic Concentration Held-for-Sale Held-for- Held-for- 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 % 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, 2019 and December 31, 2018 . Table 6.3 – Product Types and Characteristics of Residential Loans December 31, 2019 (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 3.50 % to 4.50% 2043-09 - 2046-01 $ 2,423 $ — $ — $ 251 to $500 51 3.25 % to 5.63% 2041-01 - 2048-08 20,781 — — $ 501 to $750 97 2.88 % to 5.13% 2041-09 - 2048-08 61,708 1,364 — $ 751 to $1,000 90 2.88 % to 6.00% 2043-12 - 2048-08 77,550 1,784 971 over $1,000 49 3.00 % to 5.50% 2040-10 - 2048-09 64,937 1,428 — 299 227,399 4,576 971 Fixed loans $ — to $250 38 2.90 % to 4.80% 2026-02 - 2047-12 6,549 223 — $ 251 to $500 676 2.75 % to 6.00% 2026-01 - 2049-04 287,984 — — $ 501 to $750 1,091 2.80 % to 6.75% 2026-04 - 2049-05 669,159 2,325 614 $ 751 to $1,000 519 2.75 % to 6.63% 2026-01 - 2049-04 447,499 1,895 — over $1,000 317 3.00 % to 5.88% 2031-04 - 2049-05 414,188 3,202 — 2,641 1,825,379 7,645 614 Total HFI at Redwood: 2,940 $ 2,052,778 $ 12,221 $ 1,585 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,685 1.38 % to 6.00% 2020-01 - 2035-11 $ 169,230 $ 5,135 $ 3,109 $ 251 to $500 345 1.25 % to 5.63% 2022-01 - 2036-05 120,261 6,149 3,835 $ 501 to $750 87 1.63 % to 4.38% 2027-04 - 2035-02 53,811 3,628 1,211 $ 751 to $1,000 45 1.63 % to 4.38% 2027-11 - 2036-03 37,756 827 1,648 over $1,000 24 1.63 % to 4.00% 2027-12 - 2035-04 38,341 — — 2,186 419,399 15,739 9,803 Hybrid ARM loans: $ — to $250 2 4.25 % to 4.50% 2033-09 - 2033-10 465 — — $ 251 to $500 7 3.63 % to 5.13% 2033-07 - 2034-06 2,494 — — $ 501 to $750 2 4.50 % to 4.50% 2033-08 - 2033-08 1,181 — — over $1,000 1 4.50 % to 4.50% 2033-09 - 2033-09 1,291 — — 12 5,431 — — Total HFI at Legacy Sequoia: 2,198 $ 424,830 $ 15,739 $ 9,803 Held-for-Investment at Sequoia Choice: Fixed loans: $ — to $250 56 2.75 % to 5.50% 2038-02 - 2049-07 $ 10,743 $ — $ — $ 251 to $500 420 3.13 % to 6.13% 2037-12 - 2049-09 184,455 2,282 — $ 501 to $750 1,528 3.13 % to 6.75% 2037-02 - 2049-09 940,914 13,020 2,366 $ 751 to $1,000 835 3.25 % to 6.50% 2035-04 - 2049-09 719,609 7,856 3,297 over $1,000 317 3.50 % to 5.88% 2038-01 - 2049-09 384,959 1,108 1,093 Total HFI at Sequoia Choice: 3,156 $ 2,240,680 $ 24,266 $ 6,756 Table 6.3 – Product Types and Characteristics of Residential Loans (continued) December 31, 2019 (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 11,639 2.00 % to 11.00% 2019-11 - 2059-10 $ 1,501,538 $ 477,592 $ 79,632 $ 251 to $500 2,805 2.00 % to 7.75% 2033-08 - 2058-11 894,125 297,732 52,920 $ 501 to $750 57 2.00 % to 6.75% 2043-08 - 2058-07 31,350 8,787 2,623 over $1,000 1 4.00 % to 4.00% 2056-03 - 2056-03 1,021 1,021 — Total HFI at Freddie Mac SLST: 14,502 $ 2,428,034 $ 785,132 $ 135,175 Held-for-Sale: Hybrid ARM loans $ — to $250 7 5.20 % to 7.00% 2047-08 2048-12 $ 1,254 $ — $ — $ 251 to $500 1 4.25 % to 4.25% 2049-08 - 2049-08 432 — — $ 501 to $750 52 3.00 % to 5.50% 2047-04 - 2049-12 33,611 — — $ 751 to $1,000 33 3.25 % to 4.88% 2047-04 - 2049-11 28,573 — — over $1,000 22 3.25 % to 5.25% 2048-06 - 2049-11 28,013 — — 115 91,883 — — Fixed loans $ — to $250 2 3.88 % to 7.13% 2034-08 - 2049-07 481 — — $ 251 to $500 13 3.63 % to 6.50% 2048-01 - 2050-01 6,234 — — $ 501 to $750 301 3.20 % to 5.88% 2034-05 - 2050-01 186,251 — 747 $ 751 to $1,000 161 3.50 % to 6.50% 2034-07 - 2050-01 139,786 — — over $1,000 77 3.20 % to 5.00% 2034-08 - 2050-01 100,293 1,650 — 554 433,045 1,650 747 Total Held-for-Sale 669 $ 524,928 $ 1,650 $ 747 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 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 7,900 1,310,974 198,945 50,528 Held-for-Sale: 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 1,484 $ 1,034,284 $ 559 $ 747 (1) We originate business purpose residential loans, including single-family rental loans and residential bridge loans. This origination activity commenced in connection with our acquisition of 5 Arches in March 2019. Business Purpose Residential Loan Originations During the period from March 1, 2019 to December 31, 2019 , we funded $1.02 billion of business purpose residential loans, of which $56 million of residential bridge loans and $20 million of single-family rental loans were sold to third parties. The remaining business purpose residential loans were transferred to our investment portfolio (residential bridge loans and certain single-family rental loans), or retained in our mortgage banking business (single-family rental loans) for future securitizations. Prior to the transfer of residential bridge loans to our investment portfolio, we recorded a net market valuation gain of $5 million on these loans through Mortgage banking activities, net on our consolidated statements of income for the period from March 1, 2019 to December 31, 2019 , respectively. Market valuation adjustments on our single-family rental loans are also recorded in Mortgage banking activities, net on our consolidated statements of income prior to their sale or transfer to our investment portfolio. Additionally, during the period from March 1, 2019 to December 31, 2019 , we recorded loan origination fee income associated with business purpose loans of $16 million through Mortgage banking activities, net on our consolidated statements of income. The following table summarizes the classifications and carrying values of the business purpose residential loans owned at Redwood at December 31, 2019 and December 31, 2018. Table 7.1 – Classifications and Carrying Values of Business Purpose Residential Loans December 31, 2019 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 331,565 — $ — $ 331,565 Held-for-investment at fair value 237,620 2,192,552 745,006 3,175,178 Total Business Purpose Residential Loans $ 569,185 $ 2,192,552 $ 745,006 $ 3,506,743 December 31, 2018 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 28,460 $ — $ — $ 28,460 Held-for-investment at fair value — — 112,798 112,798 Total Business Purpose Residential Loans $ 28,460 $ — $ 112,798 $ 141,258 Business Purpose Residential Loans Held-for-Sale at Fair Value Single-Family Rental Loans At December 31, 2019 , we owned 201 single-family rental loans with an aggregate unpaid principal balance of $322 million and a fair value of $332 million , as compared to 11 loans at December 31, 2018 with an aggregate unpaid principal balance of $28 million and a fair value of $28 million . At December 31, 2019 , two of these loans with an aggregate unpaid principal balance and fair value of $2 million were greater than 90 days delinquent, of which one of these loans with an unpaid principal balance of $0.1 million was in foreclosure. At December 31, 2018 , none of these loans were greater than 90 days delinquent or in foreclosure. During the period from March 1, 2019 to December 31, 2019 , we originated $514 million of single-family rental loans. Additionally, we acquired $407 million of single-family rental loans as part of our acquisition of CoreVest in the fourth quarter of 2019. During the period from March 1, 2019 to December 31, 2019 , $238 million of single-family rental loans were transferred to our investment portfolio and financed with FHLB borrowings, and the remaining loans were retained in our mortgage banking business. During this same period, we transferred $394 million of single-family rental loans from held-for-sale to held-for-investment associated with a CAFL securitization and sold $20 million to third parties. During the first two months of 2019, prior to our acquisition of 5 Arches on March 1, 2019, we purchased $19 million of single-family rental loans from 5 Arches. During the year ended December 31, 2019 , we recorded a net market valuation gain of $13 million on single-family rental loans held-for-sale at fair value through Mortgage banking activities, net on our consolidated statements of income. The outstanding single-family rental loans held-for-sale at December 31, 2019 were first-lien, fixed-rate loans with original maturities of five , seven , or ten years. At December 31, 2019 , the weighted average coupon of our single-family rental loans was 4.96% and the weighted average remaining loan term was nine years . At origination, the weighted average LTV ratio of these loans was 69% and the weighted average debt service coverage ratio ("DSCR") was 1.43 times. Business Purpose Residential Loans Held-for-Investment at Fair Value Single-Family Rental Loans at Redwood At December 31, 2019 , we owned 107 single-family rental loans held-for-investment with an aggregate unpaid principal balance of $231 million and a fair value of $238 million . At December 31, 2019 , no ne of these loans were greater than 90 days delinquent or in foreclosure. During the year ended December 31, 2019 , we transferred loans with a fair value of $238 million from held-for-sale to held-for-investment. During the year ended December 31, 2019 , we recorded a net market valuation gain of $0.3 million on single-family rental loans held-for-investment at fair value through Investment fair value changes, net on our consolidated statements of income. The outstanding single-family rental loans held-for-investment at Redwood at December 31, 2019 were first-lien, fixed-rate loans with original maturities of five , seven , or ten years. At December 31, 2019 , the weighted average coupon of our single-family rental loans was 4.89% and the weighted average remaining loan term was seven years . At origination, the weighted average LTV ratio of these loans was 68% and the weighted average DSCR was 1.36 times. Single-Family Rental Loans at CAFL In conjunction with our acquisition of CoreVest in the fourth quarter of 2019, we consolidated the single-family rental loans owned at certain CAFL securitization entities. At December 31, 2019 , we consolidated 783 held-for-investment single-family rental loans at the consolidated CAFL entities, with an aggregate unpaid principal balance of $2.08 billion and a fair value of $2.19 billion . The outstanding single-family rental loans held-for-investment at CAFL at December 31, 2019 were first-lien, fixed-rate loans with original maturities of five , seven , or ten years. At December 31, 2019 , the weighted average coupon of our single-family rental loans was 5.70% and the weighted average remaining loan term was seven years . At origination, the weighted average LTV ratio of these loans was 68% and the weighted average DSCR was 1.35 times. At December 31, 2019 , 18 of these loans with an aggregate unpaid principal balance of $29 million were greater than 90 days delinquent and five of these loans with an aggregate unpaid principal balance of $9 million were in foreclosure. During the year ended December 31, 2019 , we recorded a net market valuation loss of $15 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 CAFL securitizations . The net impact to our income statement associated with our retained economic investment in the CAFL securitization entities is presented in Note 5. Additionally, as part of our acquisition of CoreVest during the year ended December 31, 2019 , we acquired REO with a fair value of $2 million related to loans at CAFL entities, which is included in Other assets on our consolidated balance sheets. Residential Bridge Loans At December 31, 2019 , we owned 2,653 residential bridge loans held-for-investment with an aggregate unpaid principal balance of $741 million and a fair value of $745 million as compared to 157 loans at December 31, 2018 with an aggregate unpaid principal balance of $112 million and a fair value of $113 million . As part of our credit risk management practices, our residential bridge loans are subject to individual risk assessment using an internal borrower and collateral quality evaluation framework. At December 31, 2019 , 31 loans with an aggregate fair value of $12 million and an unpaid principal balance of $14 million were in foreclosure, of which 15 of these loans with an aggregate fair value of $7 million and an unpaid principal balance of $9 million were greater than 90 days delinquent. At December 31, 2018 , seven loans with an aggregate fair value of $12 million were greater than 90 days delinquent and four of these loans with an aggregate fair value of $11 million were in foreclosure. During the year ended December 31, 2019 , we transferred three loans with a fair value of $8 million to REO, which is included in Other assets on our consolidated balance sheets. During the period from March 1, 2019 to December 31, 2019 , $448 million of newly originated residential bridge loans were transferred to our investment portfolio. Additionally, we acquired $375 million of residential bridge loans as part of our acquisition of CoreVest during the fourth quarter of 2019. During the first two months of 2019, prior to our acquisition of 5 Arches on March 1, 2019, we purchased $10 million of residential bridge loans from 5 Arches. During the year ended December 31, 2019 , we recorded a net market valuation loss of $2 million on residential bridge loans held-for-investment at fair value through Investment fair value changes, net on our consolidated statements of income. The outstanding residential bridge loans held-for-investment at December 31, 2019 were first lien, fixed-rate, interest-only loans with a weighted average coupon of 8.11% and original maturities of six to 24 months. At origination, the weighted average FICO score of borrowers backing these loans was 732 and the weighted average LTV ratio of these loans was 70% . At December 31, 2019 , we had a $173 million commitment to fund residential bridge loans. See Note 16 for additional information on this commitment. 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, 2019 . Table 7.2 – Geographic Concentration of Business Purpose Residential Loans December 31, 2019 Geographic Concentration Single-Family Rental Held-for-Sale Single-Family Rental Held-for-Investment at Redwood Single-Family Rental Held-for-Investment at CAFL Residential Bridge Florida 5 % — % 8 % 9 % Texas 19 % 12 % 15 % 3 % New Jersey 12 % 5 % 11 % 8 % New York 5 % 1 % 1 % 6 % California 2 % 1 % 7 % 21 % Utah — % — % — % 5 % Georgia 8 % — % 5 % 7 % Alabama 5 % — % 4 % 4 % Arkansas 6 % — % 2 % — % Maryland 6 % — % 2 % — % Illinois 1 % — % 5 % 3 % Other states (none greater than 5%) 31 % 81 % 40 % 34 % Total 100 % 100 % 100 % 100 % December 31, 2018 Geographic Concentration Single-Family Rental Held-for-Sale Single-Family Rental Held-for-Investment at Redwood Single-Family Rental Held-for-Investment at CAFL 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, 2019 . Table 7.3 – Product Types and Characteristics of Business Purpose Residential Loans December 31, 2019 (In Thousands) Loan Balance Number of Loans Interest Rate Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Single-Family Rental Held-for-Investment at Redwood: Fixed loans: $ 251 to $500 20 4.88 % to 7.47% 2024-02 - 2030-01 $ 7,925 $ — $ — $ 501 to $750 26 4.45 % to 7.25% 2023-09 - 2030-01 15,620 — — $ 751 to $1,000 16 4.91 % to 6.58% 2023-11 - 2029-09 13,616 — — over $1,000 45 3.93 % to 6.94% 2023-10 - 2030-01 194,050 — — Total SFR HFI at Redwood: 107 $ 231,211 $ — $ — Single-Family Rental Held-for-Investment at CAFL: Fixed loans: $ — to $250 2 5.46 % to 5.80% 2019-11 - 2021-09 $ 398 $ — $ — $ 251 to $500 56 4.92 % to 7.05% 2020-03 - 2029-10 $ 25,643 $ 1,306 $ — $ 501 to $750 148 4.75 % to 7.31% 2020-03 - 2029-10 91,414 1,259 1,990 $ 751 to $1,000 98 4.62 % to 7.23% 2020-03 - 2029-10 85,472 1,639 879 over $1,000 479 4.31 % to 7.57% 2019-12 - 2029-11 1,875,287 18,567 26,170 Total SFR HFI at CAFL: 783 $ 2,078,214 $ 22,771 $ 29,039 Single-Family Rental Held-for-Sale: Fixed loans: $ — to $250 85 5.50 % to 7.63% 2027-03 - 2050-01 $ 10,506 $ — $ 130 $ 251 to $500 9 4.94 % to 6.00% 2024-11 - 2050-01 3,708 — — $ 501 to $750 21 4.55 % to 5.96% 2024-01 - 2030-01 13,335 — — $ 751 to $1,000 13 5.00 % to 5.93% 2024-01 - 2030-01 11,676 — — over $1,000 73 4.35 % to 6.28% 2024-01 - 2030-01 282,411 — 1,688 Total Single-Family Rental HFS: 201 $ 321,636 $ — $ 1,818 Residential Bridge: Fixed loans: $ — to $250 2,207 6.53 % to 12.00% 2019-07 - 2022-01 $ 197,449 $ 1,447 $ 369 $ 251 to $500 198 6.99 % to 13.00% 2019-10 - 2022-01 71,361 2,811 675 $ 501 to $750 71 6.99 % to 9.99% 2019-11 - 2021-10 42,862 2,072 508 $ 751 to $1,000 40 7.28 % to 10.00% 2018-10 - 2022-01 34,646 1,771 2,443 over $1,000 137 5.79 % to 10.25% 2019-11 - 2022-01 394,914 31,452 4,994 Total Residential Bridge: 2,653 $ 741,232 $ 39,553 $ 8,989 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 Held-for-Sale: 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 HFS: 11 $ 27,566 $ — $ — Residential Bridge: Fixed loans: $ — to $250 50 8.00 % to 12.00% 2018-07 - 2020-05 $ 7,941 $ 262 $ 695 $ 251

Multifamily Loans

Multifamily Loans	12 Months Ended
	Dec. 31, 2019
Receivables [Abstract]
Multifamily 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, 2019 and December 31, 2018 . Table 6.1 – Classifications and Carrying Values of Residential Loans December 31, 2019 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia Choice SLST Total Held-for-sale at fair value $ 536,385 $ — $ — $ — $ 536,385 Held-for-investment at fair value 2,111,897 407,890 2,291,463 2,367,215 7,178,465 Total Residential Loans $ 2,648,282 $ 407,890 $ 2,291,463 $ 2,367,215 $ 7,714,850 December 31, 2018 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia Choice SLST Total Held-for-sale at fair value $ 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 At December 31, 2019 , we owned mortgage servicing rights associated with $2.03 billion (principal balance) of consolidated residential loans purchased from third-party originators. The value of these MSRs is included in the carrying value of the associated loans on our consolidated balance sheets. We contract with licensed sub-servicers that perform servicing functions for these loans. Residential Loans Held-for-Sale At Fair Value At December 31, 2019 , we owned 669 loans held-for-sale at fair value with an aggregate unpaid principal balance of $525 million and a fair value of $536 million , compared to 1,484 loans with an aggregate unpaid principal balance of $1.03 billion and a fair value of $1.05 billion at December 31, 2018 . At December 31, 2019 , one of these loans with a fair value of $0.6 million and an unpaid principal balance of $0.7 million was greater than 90 days delinquent and no ne of these loans were in foreclosure. At December 31, 2018 , one of these loans with a fair value of $0.6 million and an unpaid principal balance of $0.7 million was greater than 90 days delinquent and no ne of these loans were in foreclosure. During the years ended December 31, 2019 and 2018 , we purchased $5.73 billion and $7.07 billion (principal balance) of loans, respectively, for which we elected the fair value option, and we sold $6.07 billion and $7.11 billion (principal balance) of loans, respectively, for which we recorded net market valuation gain s of $3 million and $23 million , respectively, through Mortgage banking activities, net on our consolidated statements of income. Residential Loans Held-for-Investment at Fair Value At Redwood At December 31, 2019 , we owned 2,940 held-for-investment loans at Redwood with an aggregate unpaid principal balance of $2.05 billion and a fair value of $2.11 billion , compared to 3,296 loans with an aggregate unpaid principal balance of $2.39 billion and a fair value of $2.38 billion at December 31, 2018 . At December 31, 2019 , two of these loans with a total fair value of $1 million and an unpaid principal balance of $2 million were greater than 90 days delinquent and no ne of these loans were in foreclosure. At December 31, 2018 , two of these loans with an aggregate fair value and unpaid principal balance of $1 million were greater than 90 days delinquent and no ne of these loans were in foreclosure. During the years ended December 31, 2019 and 2018 , we transferred loans with a fair value of $69 million and $286 million , respectively, from held-for-sale to held-for-investment. During the years ended December 31, 2019 and 2018 , we transferred loans with a fair value of $23 million and $16 million , respectively, from held-for-investment to held-for-sale. During the year s ended December 31, 2019 and 2018 , we recorded a net market valuation gain of $59 million and a net market valuation loss of $30 million , respectively, on residential loans held-for-investment at fair value through Investment fair value changes, net on our consolidated statements of income. The outstanding loans held-for-investment at Redwood at December 31, 2019 were prime-quality, first-lien loans, of which 96% were originated between 2013 and 2019, 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, 2019 , these loans were comprised of 89% fixed-rate loans with a weighted average coupon of 4.14% , and the remainder were hybrid or ARM loans with a weighted average coupon of 4.16% . At Consolidated Legacy Sequoia Entities At December 31, 2019 , we consolidated 2,198 held-for-investment loans at consolidated Legacy Sequoia entities, with an aggregate unpaid principal balance of $425 million and a fair value of $408 million , as compared to 2,641 loans at December 31, 2018 , with an aggregate unpaid principal balance of $545 million and a fair value of $520 million . At origination, the weighted average FICO score of borrowers backing these loans was 727 , the weighted average LTV ratio of these loans was 65% , and the loans were nearly all first lien and prime-quality. At December 31, 2019 and December 31, 2018 , the unpaid principal balance of loans at consolidated Sequoia entities delinquent greater than 90 days was $10 million and $14 million , respectively, of which the unpaid principal balance of loans in foreclosure was $4 million and $5 million , respectively. During the years ended December 31, 2019 and 2018 , we recorded net market valuation gain s of $5 million and $37 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, 2019 , we consolidated 3,156 held-for-investment loans at consolidated Sequoia Choice entities, with an aggregate unpaid balance of $2.24 billion and a fair value of $2.29 billion , as compared to 2,800 loans a t December 31, 2018 , with an aggregate unpaid principal balance of $2.04 billion and a fair value of $2.08 billion . 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, 2019 , nine of these loans with an aggregate unpaid principal balance of $7 million were greater than 90 days delinquent and three of these loans with an aggregate unpaid principal balance of $2 million were in foreclosure. At December 31, 2018 , three of these loans with an aggregate unpaid principal balance of $2 million were greater than 90 days delinquent and none of these loans were in foreclosure. During the years ended December 31, 2019 and 2018 , we transferred loans with a fair value of $1.08 billion and $1.78 billion , respectively, from held-for-sale to held-for-investment associated with Choice securitizations. During the years ended December 31, 2019 and 2018 , we recorded net market valuation loss es of $15 million and $13 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 Entities Beginning in the fourth quarter of 2018, we invested in subordinate securities issued by certain Freddie Mac SLST securitization trusts and were required to consolidate the underlying seasoned re-performing and non-performing residential loans owned at these entities for financial reporting purposes in accordance with GAAP. At securitization, each of these mortgage loans was a fully amortizing, fixed- or step-rate, first-lien loan that had been modified. At December 31, 2019 , we consolidated 14,502 held-for-investment loans at the consolidated Freddie Mac SLST entities, with an aggregate unpaid principal balance of $2.43 billion and a fair value of $2.37 billion , as compared to 7,900 loans a t December 31, 2018 , with an aggregate unpaid principal balance of $1.31 billion and a fair value of $1.22 billion . At securitization, the weighted average FICO score of borrowers backing these loans was 600 and the weighted average LTV ratio of these loans was 73% . At December 31, 2019 , 587 of these loans with an aggregate unpaid principal balance of $135 million were greater than 90 days delinquent and 208 of these loans with an aggregate unpaid principal balance of $33 million were in foreclosure. At December 31, 2018 , 306 of these loans with aggregate unpaid principal balance of $51 million were greater than 90 days delinquent and none of these loans were in foreclosure. During the years ended December 31, 2019 and 2018 , we recorded net market valuation gain s of $64 million and $21 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 the Freddie Mac SLST securitizations . The net impact to our income statement associated with our economic investment in the Freddie Mac SLST securitization entities is presented in Note 5. Residential Loan Characteristics The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2019 and December 31, 2018 . Table 6.2 – Geographic Concentration of Residential Loans December 31, 2019 Geographic Concentration Held-for-Sale Held-for- Held-for- Investment at Sequoia Choice Held-for-Investment at Freddie Mac SLST Held-for- California 36 % 18 % 35 % 14 % 45 % Washington 7 % 1 % 7 % 2 % 5 % Texas 6 % 6 % 9 % 3 % 8 % Colorado 6 % 3 % 4 % — % 4 % Florida 4 % 14 % 5 % 10 % 5 % New Jersey 2 % 4 % 2 % 7 % 2 % New York 1 % 10 % 4 % 10 % 4 % Other states (none greater than 5%) 38 % 44 % 34 % 54 % 27 % Total 100 % 100 % 100 % 100 % 100 % December 31, 2018 Geographic Concentration Held-for-Sale Held-for- Held-for- 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 % 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, 2019 and December 31, 2018 . Table 6.3 – Product Types and Characteristics of Residential Loans December 31, 2019 (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 3.50 % to 4.50% 2043-09 - 2046-01 $ 2,423 $ — $ — $ 251 to $500 51 3.25 % to 5.63% 2041-01 - 2048-08 20,781 — — $ 501 to $750 97 2.88 % to 5.13% 2041-09 - 2048-08 61,708 1,364 — $ 751 to $1,000 90 2.88 % to 6.00% 2043-12 - 2048-08 77,550 1,784 971 over $1,000 49 3.00 % to 5.50% 2040-10 - 2048-09 64,937 1,428 — 299 227,399 4,576 971 Fixed loans $ — to $250 38 2.90 % to 4.80% 2026-02 - 2047-12 6,549 223 — $ 251 to $500 676 2.75 % to 6.00% 2026-01 - 2049-04 287,984 — — $ 501 to $750 1,091 2.80 % to 6.75% 2026-04 - 2049-05 669,159 2,325 614 $ 751 to $1,000 519 2.75 % to 6.63% 2026-01 - 2049-04 447,499 1,895 — over $1,000 317 3.00 % to 5.88% 2031-04 - 2049-05 414,188 3,202 — 2,641 1,825,379 7,645 614 Total HFI at Redwood: 2,940 $ 2,052,778 $ 12,221 $ 1,585 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,685 1.38 % to 6.00% 2020-01 - 2035-11 $ 169,230 $ 5,135 $ 3,109 $ 251 to $500 345 1.25 % to 5.63% 2022-01 - 2036-05 120,261 6,149 3,835 $ 501 to $750 87 1.63 % to 4.38% 2027-04 - 2035-02 53,811 3,628 1,211 $ 751 to $1,000 45 1.63 % to 4.38% 2027-11 - 2036-03 37,756 827 1,648 over $1,000 24 1.63 % to 4.00% 2027-12 - 2035-04 38,341 — — 2,186 419,399 15,739 9,803 Hybrid ARM loans: $ — to $250 2 4.25 % to 4.50% 2033-09 - 2033-10 465 — — $ 251 to $500 7 3.63 % to 5.13% 2033-07 - 2034-06 2,494 — — $ 501 to $750 2 4.50 % to 4.50% 2033-08 - 2033-08 1,181 — — over $1,000 1 4.50 % to 4.50% 2033-09 - 2033-09 1,291 — — 12 5,431 — — Total HFI at Legacy Sequoia: 2,198 $ 424,830 $ 15,739 $ 9,803 Held-for-Investment at Sequoia Choice: Fixed loans: $ — to $250 56 2.75 % to 5.50% 2038-02 - 2049-07 $ 10,743 $ — $ — $ 251 to $500 420 3.13 % to 6.13% 2037-12 - 2049-09 184,455 2,282 — $ 501 to $750 1,528 3.13 % to 6.75% 2037-02 - 2049-09 940,914 13,020 2,366 $ 751 to $1,000 835 3.25 % to 6.50% 2035-04 - 2049-09 719,609 7,856 3,297 over $1,000 317 3.50 % to 5.88% 2038-01 - 2049-09 384,959 1,108 1,093 Total HFI at Sequoia Choice: 3,156 $ 2,240,680 $ 24,266 $ 6,756 Table 6.3 – Product Types and Characteristics of Residential Loans (continued) December 31, 2019 (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 11,639 2.00 % to 11.00% 2019-11 - 2059-10 $ 1,501,538 $ 477,592 $ 79,632 $ 251 to $500 2,805 2.00 % to 7.75% 2033-08 - 2058-11 894,125 297,732 52,920 $ 501 to $750 57 2.00 % to 6.75% 2043-08 - 2058-07 31,350 8,787 2,623 over $1,000 1 4.00 % to 4.00% 2056-03 - 2056-03 1,021 1,021 — Total HFI at Freddie Mac SLST: 14,502 $ 2,428,034 $ 785,132 $ 135,175 Held-for-Sale: Hybrid ARM loans $ — to $250 7 5.20 % to 7.00% 2047-08 2048-12 $ 1,254 $ — $ — $ 251 to $500 1 4.25 % to 4.25% 2049-08 - 2049-08 432 — — $ 501 to $750 52 3.00 % to 5.50% 2047-04 - 2049-12 33,611 — — $ 751 to $1,000 33 3.25 % to 4.88% 2047-04 - 2049-11 28,573 — — over $1,000 22 3.25 % to 5.25% 2048-06 - 2049-11 28,013 — — 115 91,883 — — Fixed loans $ — to $250 2 3.88 % to 7.13% 2034-08 - 2049-07 481 — — $ 251 to $500 13 3.63 % to 6.50% 2048-01 - 2050-01 6,234 — — $ 501 to $750 301 3.20 % to 5.88% 2034-05 - 2050-01 186,251 — 747 $ 751 to $1,000 161 3.50 % to 6.50% 2034-07 - 2050-01 139,786 — — over $1,000 77 3.20 % to 5.00% 2034-08 - 2050-01 100,293 1,650 — 554 433,045 1,650 747 Total Held-for-Sale 669 $ 524,928 $ 1,650 $ 747 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 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 7,900 1,310,974 198,945 50,528 Held-for-Sale: 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 1,484 $ 1,034,284 $ 559 $ 747 (1) We originate business purpose residential loans, including single-family rental loans and residential bridge loans. This origination activity commenced in connection with our acquisition of 5 Arches in March 2019. Business Purpose Residential Loan Originations During the period from March 1, 2019 to December 31, 2019 , we funded $1.02 billion of business purpose residential loans, of which $56 million of residential bridge loans and $20 million of single-family rental loans were sold to third parties. The remaining business purpose residential loans were transferred to our investment portfolio (residential bridge loans and certain single-family rental loans), or retained in our mortgage banking business (single-family rental loans) for future securitizations. Prior to the transfer of residential bridge loans to our investment portfolio, we recorded a net market valuation gain of $5 million on these loans through Mortgage banking activities, net on our consolidated statements of income for the period from March 1, 2019 to December 31, 2019 , respectively. Market valuation adjustments on our single-family rental loans are also recorded in Mortgage banking activities, net on our consolidated statements of income prior to their sale or transfer to our investment portfolio. Additionally, during the period from March 1, 2019 to December 31, 2019 , we recorded loan origination fee income associated with business purpose loans of $16 million through Mortgage banking activities, net on our consolidated statements of income. The following table summarizes the classifications and carrying values of the business purpose residential loans owned at Redwood at December 31, 2019 and December 31, 2018. Table 7.1 – Classifications and Carrying Values of Business Purpose Residential Loans December 31, 2019 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 331,565 — $ — $ 331,565 Held-for-investment at fair value 237,620 2,192,552 745,006 3,175,178 Total Business Purpose Residential Loans $ 569,185 $ 2,192,552 $ 745,006 $ 3,506,743 December 31, 2018 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 28,460 $ — $ — $ 28,460 Held-for-investment at fair value — — 112,798 112,798 Total Business Purpose Residential Loans $ 28,460 $ — $ 112,798 $ 141,258 Business Purpose Residential Loans Held-for-Sale at Fair Value Single-Family Rental Loans At December 31, 2019 , we owned 201 single-family rental loans with an aggregate unpaid principal balance of $322 million and a fair value of $332 million , as compared to 11 loans at December 31, 2018 with an aggregate unpaid principal balance of $28 million and a fair value of $28 million . At December 31, 2019 , two of these loans with an aggregate unpaid principal balance and fair value of $2 million were greater than 90 days delinquent, of which one of these loans with an unpaid principal balance of $0.1 million was in foreclosure. At December 31, 2018 , none of these loans were greater than 90 days delinquent or in foreclosure. During the period from March 1, 2019 to December 31, 2019 , we originated $514 million of single-family rental loans. Additionally, we acquired $407 million of single-family rental loans as part of our acquisition of CoreVest in the fourth quarter of 2019. During the period from March 1, 2019 to December 31, 2019 , $238 million of single-family rental loans were transferred to our investment portfolio and financed with FHLB borrowings, and the remaining loans were retained in our mortgage banking business. During this same period, we transferred $394 million of single-family rental loans from held-for-sale to held-for-investment associated with a CAFL securitization and sold $20 million to third parties. During the first two months of 2019, prior to our acquisition of 5 Arches on March 1, 2019, we purchased $19 million of single-family rental loans from 5 Arches. During the year ended December 31, 2019 , we recorded a net market valuation gain of $13 million on single-family rental loans held-for-sale at fair value through Mortgage banking activities, net on our consolidated statements of income. The outstanding single-family rental loans held-for-sale at December 31, 2019 were first-lien, fixed-rate loans with original maturities of five , seven , or ten years. At December 31, 2019 , the weighted average coupon of our single-family rental loans was 4.96% and the weighted average remaining loan term was nine years . At origination, the weighted average LTV ratio of these loans was 69% and the weighted average debt service coverage ratio ("DSCR") was 1.43 times. Business Purpose Residential Loans Held-for-Investment at Fair Value Single-Family Rental Loans at Redwood At December 31, 2019 , we owned 107 single-family rental loans held-for-investment with an aggregate unpaid principal balance of $231 million and a fair value of $238 million . At December 31, 2019 , no ne of these loans were greater than 90 days delinquent or in foreclosure. During the year ended December 31, 2019 , we transferred loans with a fair value of $238 million from held-for-sale to held-for-investment. During the year ended December 31, 2019 , we recorded a net market valuation gain of $0.3 million on single-family rental loans held-for-investment at fair value through Investment fair value changes, net on our consolidated statements of income. The outstanding single-family rental loans held-for-investment at Redwood at December 31, 2019 were first-lien, fixed-rate loans with original maturities of five , seven , or ten years. At December 31, 2019 , the weighted average coupon of our single-family rental loans was 4.89% and the weighted average remaining loan term was seven years . At origination, the weighted average LTV ratio of these loans was 68% and the weighted average DSCR was 1.36 times. Single-Family Rental Loans at CAFL In conjunction with our acquisition of CoreVest in the fourth quarter of 2019, we consolidated the single-family rental loans owned at certain CAFL securitization entities. At December 31, 2019 , we consolidated 783 held-for-investment single-family rental loans at the consolidated CAFL entities, with an aggregate unpaid principal balance of $2.08 billion and a fair value of $2.19 billion . The outstanding single-family rental loans held-for-investment at CAFL at December 31, 2019 were first-lien, fixed-rate loans with original maturities of five , seven , or ten years. At December 31, 2019 , the weighted average coupon of our single-family rental loans was 5.70% and the weighted average remaining loan term was seven years . At origination, the weighted average LTV ratio of these loans was 68% and the weighted average DSCR was 1.35 times. At December 31, 2019 , 18 of these loans with an aggregate unpaid principal balance of $29 million were greater than 90 days delinquent and five of these loans with an aggregate unpaid principal balance of $9 million were in foreclosure. During the year ended December 31, 2019 , we recorded a net market valuation loss of $15 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 CAFL securitizations . The net impact to our income statement associated with our retained economic investment in the CAFL securitization entities is presented in Note 5. Additionally, as part of our acquisition of CoreVest during the year ended December 31, 2019 , we acquired REO with a fair value of $2 million related to loans at CAFL entities, which is included in Other assets on our consolidated balance sheets. Residential Bridge Loans At December 31, 2019 , we owned 2,653 residential bridge loans held-for-investment with an aggregate unpaid principal balance of $741 million and a fair value of $745 million as compared to 157 loans at December 31, 2018 with an aggregate unpaid principal balance of $112 million and a fair value of $113 million . As part of our credit risk management practices, our residential bridge loans are subject to individual risk assessment using an internal borrower and collateral quality evaluation framework. At December 31, 2019 , 31 loans with an aggregate fair value of $12 million and an unpaid principal balance of $14 million were in foreclosure, of which 15 of these loans with an aggregate fair value of $7 million and an unpaid principal balance of $9 million were greater than 90 days delinquent. At December 31, 2018 , seven loans with an aggregate fair value of $12 million were greater than 90 days delinquent and four of these loans with an aggregate fair value of $11 million were in foreclosure. During the year ended December 31, 2019 , we transferred three loans with a fair value of $8 million to REO, which is included in Other assets on our consolidated balance sheets. During the period from March 1, 2019 to December 31, 2019 , $448 million of newly originated residential bridge loans were transferred to our investment portfolio. Additionally, we acquired $375 million of residential bridge loans as part of our acquisition of CoreVest during the fourth quarter of 2019. During the first two months of 2019, prior to our acquisition of 5 Arches on March 1, 2019, we purchased $10 million of residential bridge loans from 5 Arches. During the year ended December 31, 2019 , we recorded a net market valuation loss of $2 million on residential bridge loans held-for-investment at fair value through Investment fair value changes, net on our consolidated statements of income. The outstanding residential bridge loans held-for-investment at December 31, 2019 were first lien, fixed-rate, interest-only loans with a weighted average coupon of 8.11% and original maturities of six to 24 months. At origination, the weighted average FICO score of borrowers backing these loans was 732 and the weighted average LTV ratio of these loans was 70% . At December 31, 2019 , we had a $173 million commitment to fund residential bridge loans. See Note 16 for additional information on this commitment. 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, 2019 . Table 7.2 – Geographic Concentration of Business Purpose Residential Loans December 31, 2019 Geographic Concentration Single-Family Rental Held-for-Sale Single-Family Rental Held-for-Investment at Redwood Single-Family Rental Held-for-Investment at CAFL Residential Bridge Florida 5 % — % 8 % 9 % Texas 19 % 12 % 15 % 3 % New Jersey 12 % 5 % 11 % 8 % New York 5 % 1 % 1 % 6 % California 2 % 1 % 7 % 21 % Utah — % — % — % 5 % Georgia 8 % — % 5 % 7 % Alabama 5 % — % 4 % 4 % Arkansas 6 % — % 2 % — % Maryland 6 % — % 2 % — % Illinois 1 % — % 5 % 3 % Other states (none greater than 5%) 31 % 81 % 40 % 34 % Total 100 % 100 % 100 % 100 % December 31, 2018 Geographic Concentration Single-Family Rental Held-for-Sale Single-Family Rental Held-for-Investment at Redwood Single-Family Rental Held-for-Investment at CAFL 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, 2019 . Table 7.3 – Product Types and Characteristics of Business Purpose Residential Loans December 31, 2019 (In Thousands) Loan Balance Number of Loans Interest Rate Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Single-Family Rental Held-for-Investment at Redwood: Fixed loans: $ 251 to $500 20 4.88 % to 7.47% 2024-02 - 2030-01 $ 7,925 $ — $ — $ 501 to $750 26 4.45 % to 7.25% 2023-09 - 2030-01 15,620 — — $ 751 to $1,000 16 4.91 % to 6.58% 2023-11 - 2029-09 13,616 — — over $1,000 45 3.93 % to 6.94% 2023-10 - 2030-01 194,050 — — Total SFR HFI at Redwood: 107 $ 231,211 $ — $ — Single-Family Rental Held-for-Investment at CAFL: Fixed loans: $ — to $250 2 5.46 % to 5.80% 2019-11 - 2021-09 $ 398 $ — $ — $ 251 to $500 56 4.92 % to 7.05% 2020-03 - 2029-10 $ 25,643 $ 1,306 $ — $ 501 to $750 148 4.75 % to 7.31% 2020-03 - 2029-10 91,414 1,259 1,990 $ 751 to $1,000 98 4.62 % to 7.23% 2020-03 - 2029-10 85,472 1,639 879 over $1,000 479 4.31 % to 7.57% 2019-12 - 2029-11 1,875,287 18,567 26,170 Total SFR HFI at CAFL: 783 $ 2,078,214 $ 22,771 $ 29,039 Single-Family Rental Held-for-Sale: Fixed loans: $ — to $250 85 5.50 % to 7.63% 2027-03 - 2050-01 $ 10,506 $ — $ 130 $ 251 to $500 9 4.94 % to 6.00% 2024-11 - 2050-01 3,708 — — $ 501 to $750 21 4.55 % to 5.96% 2024-01 - 2030-01 13,335 — — $ 751 to $1,000 13 5.00 % to 5.93% 2024-01 - 2030-01 11,676 — — over $1,000 73 4.35 % to 6.28% 2024-01 - 2030-01 282,411 — 1,688 Total Single-Family Rental HFS: 201 $ 321,636 $ — $ 1,818 Residential Bridge: Fixed loans: $ — to $250 2,207 6.53 % to 12.00% 2019-07 - 2022-01 $ 197,449 $ 1,447 $ 369 $ 251 to $500 198 6.99 % to 13.00% 2019-10 - 2022-01 71,361 2,811 675 $ 501 to $750 71 6.99 % to 9.99% 2019-11 - 2021-10 42,862 2,072 508 $ 751 to $1,000 40 7.28 % to 10.00% 2018-10 - 2022-01 34,646 1,771 2,443 over $1,000 137 5.79 % to 10.25% 2019-11 - 2022-01 394,914 31,452 4,994 Total Residential Bridge: 2,653 $ 741,232 $ 39,553 $ 8,989 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 Held-for-Sale: 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 HFS: 11 $ 27,566 $ — $ — Residential Bridge: Fixed loans: $ — to $250 50 8.00 % to 12.00% 2018-07 - 2020-05 $ 7,941 $ 262 $ 695 $ 251

Real Estate Securities

Real Estate Securities	12 Months Ended
	Dec. 31, 2019
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, 2019 and December 31, 2018 . Table 9.1 – Fair Values of Real Estate Securities by Type (In Thousands) December 31, 2019 December 31, 2018 Trading $ 860,540 $ 1,118,612 Available-for-sale 239,334 333,882 Total Real Estate Securities $ 1,099,874 $ 1,452,494 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. Many of our mezzanine classified securities were initially rated AA through BBB- and issued in 2012 or later. Subordinate securities are all interests below mezzanine. Excluding our re-performing loan securities, 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, 2019 and December 31, 2018 . Table 9.2 – Trading Securities by Position (In Thousands) December 31, 2019 December 31, 2018 Senior $ 150,067 $ 158,670 Mezzanine 538,489 610,819 Subordinate 171,984 349,123 Total Trading Securities $ 860,540 $ 1,118,612 We elected the fair value option for certain securities and classify them as trading securities. Our trading securities include both residential and multifamily mortgage-backed securities, and our residential securities also include securities backed by re-performing loans ("RPL"). At December 31, 2019 and 2018 , our senior trading securities included $64 million and $82 million of interest-only securities, respectively, for which there is no principal balance, and the unpaid principal balance of our remaining senior trading securities was $84 million and $78 million , respectively. Our interest-only securities included $36 million and $43 million of A-IO-S securities at December 31, 2019 and 2018 , respectively, which are securities we retained from certain of our Sequoia securitizations that represent certificated servicing strips. At December 31, 2019 and 2018 , our senior trading securities included $55 million and $48 million of RPL securities, respectively. At December 31, 2019 and 2018, our mezzanine trading securities had an unpaid principal balance of $537 million and $646 million , respectively. At December 31, 2019 and 2018, the fair value of our mezzanine securities was $538 million and $611 million , respectively, and included $39 million and $68 million of Sequoia securities, respectively, $395 million and $429 million of multifamily securities, respectively, and $104 million and $114 million of other third party residential securities, respectively, including $30 million and $11 million of RPL securities, respectively. At December 31, 2019 and 2018, our subordinate trading securities had an unpaid principal balance of $302 million and $476 million , respectively. At December 31, 2019 and 2018, the fair value of our subordinate securities was $172 million and $349 million , respectively, and included $90 million and $277 million of Agency residential mortgage CRT securities, respectively, and $82 million and $72 million of other third party residential securities, respectively, including $76 million and $63 million of RPL securities, respectively. During the year s ended December 31, 2019 and 2018 , we acquired $367 million and $688 million (principal balance), respectively, of securities for which we elected the fair value option and classified as trading, and sold $593 million and $415 million , respectively, of such securities. During the year s ended December 31, 2019 and 2018 , we recorded a net market valuation gain of $56 million and a net market valuation loss of $8 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, 2019 and December 31, 2018 . Table 9.3 – Available-for-Sale Securities by Position (In Thousands) December 31, 2019 December 31, 2018 Senior $ 25,792 $ 87,615 Mezzanine 13,687 36,407 Subordinate 199,855 209,860 Total AFS Securities $ 239,334 $ 333,882 At December 31, 2019 , our available-for-sale securities were comprised of $230 million of residential mortgage-backed securities and $9 million of multifamily mortgage-backed securities. At December 31, 2018 , our available-for-sale securities were comprised entirely of residential mortgage-backed securities. During the years ended December 31, 2019 and 2018 , we purchased $27 million and $8 million of AFS securities, respectively, and sold $110 million and $144 million of AFS securities, respectively, which resulted in net realized gains of $18 million and $27 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, 2019 , there were no AFS securities with contractual maturities less than five years , $8 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, 2019 and December 31, 2018 . Table 9.4 – Carrying Value of AFS Securities December 31, 2019 (In Thousands) Senior Mezzanine Subordinate Total Principal balance $ 26,331 $ 13,512 $ 264,234 $ 304,077 Credit reserve (533 ) — (32,407 ) (32,940 ) Unamortized discount, net (10,427 ) (527 ) (113,301 ) (124,255 ) Amortized cost 15,371 12,985 118,526 146,882 Gross unrealized gains 10,450 702 81,329 92,481 Gross unrealized losses (29 ) — — (29 ) Carrying Value $ 25,792 $ 13,687 $ 199,855 $ 239,334 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 The following table presents the changes for the years ended December 31, 2019 and 2018 , 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, 2019 Year Ended December 31, 2018 Credit Unamortized Credit Unamortized (In Thousands) Beginning balance $ 41,370 $ 151,200 $ 46,549 $ 183,753 Amortization of net discount — (7,921 ) — (14,098 ) Realized credit losses (2,606 ) — (2,165 ) — Acquisitions 3,712 1,910 6,315 2,716 Sales, calls, other (9,453 ) (21,017 ) (1,850 ) (28,739 ) Impairments — — 89 — Transfers to (release of) credit reserves, net (83 ) 83 (7,568 ) 7,568 Ending Balance $ 32,940 $ 124,255 $ 41,370 $ 151,200 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, 2019 and December 31, 2018 . Table 9.6 – Components of Fair Value of 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, 2019 $ — $ — $ — $ 5,830 $ (29 ) $ 5,801 December 31, 2018 12,923 (499 ) 12,424 7,464 (49 ) 7,415 At December 31, 2019 , after giving effect to purchases, sales, and extinguishment due to credit losses, our consolidated balance sheet included 107 AFS securities, of which one was in an unrealized loss position and one was in a continuous unrealized loss position for 12 consecutive months or longer. At December 31, 2018 , 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. Evaluating AFS Securities for Other-than-Temporary Impairments Gross unrealized losses on our AFS securities were less than $0.1 million at December 31, 2019 . 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, 2019 , 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, 2019 , there were no other-than-temporary impairments related to our AFS securities. AFS securities for which OTTI is recognized have experienced, or are expected to experience, credit-related adverse cash flow changes. In determining our estimate of cash flows for AFS securities we may consider factors such as structural credit enhancement, past and expected future performance of underlying mortgage loans, including timing of expected future cash flows, which are informed by prepayment rates, default rates, loss severities, delinquency rates, percentage of non-performing loans, FICO scores at loan origination, year of origination, loan-to-value ratios, and geographic concentrations, as well as general market assessments. Changes in our evaluation of these factors impacted the cash flows expected to be collected at the OTTI assessment date and were used to determine if there were credit-related adverse cash flows and if so, the amount of credit related losses. Significant judgment is used in both our analysis of the expected cash flows for our AFS securities and any determination of the credit loss component of OTTI. The table below summarizes the significant valuation assumptions we used for our AFS securities in unrealized loss positions at December 31, 2019 . Table 9.7 – Significant Valuation Assumptions December 31, 2019 Range for Securities Prepayment rates 15 % - 15% Projected losses 1 % - 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, 2019 , 2018 , and 2017 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) 2019 2018 2017 Balance at beginning of period $ 18,652 $ 21,037 $ 28,261 Additions Initial credit impairments — 76 178 Subsequent credit impairments — — 47 Reductions Securities sold, or expected to sell (77 ) (1,218 ) (4,898 ) Securities with no outstanding principal at period end (4,417 ) (1,243 ) (2,551 ) Balance at End of Period $ 14,158 $ 18,652 $ 21,037 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, 2019 , 2018 , and 2017 . Table 9.9 – Gross Realized Gains and Losses on AFS Securities Years Ended December 31, (In Thousands) 2019 2018 2017 Gross realized gains - sales $ 17,582 $ 27,127 $ 13,927 Gross realized gains - calls 6,239 43 677 Gross realized losses - sales — (129 ) — Gross realized losses - calls — — (497 ) Total Realized Gains on Sales and Calls of AFS Securities, net $ 23,821 $ 27,041 $ 14,107

Other Investments

Other Investments	12 Months Ended
	Dec. 31, 2019
Investments, All Other Investments [Abstract]
Other Investments	Other Investments Other investments at December 31, 2019 and December 31, 2018 are summarized in the following table. Table 10.1 – Components of Other Investments (In Thousands) December 31, 2019 December 31, 2018 Servicer advance investments $ 169,204 $ 300,468 Shared home appreciation options 45,085 — Mortgage servicing rights 42,224 60,281 Investment in multifamily loan fund 39,802 — Excess MSRs 31,814 27,312 Participation in loan warehouse facility — 39,703 Investment in 5 Arches — 10,754 Other 30,001 — Total Other Investments $ 358,130 $ 438,518 Servicer advance investments In 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 regarding the transaction). At December 31, 2019 , we had funded $71 million of total capital to the SA Buyers (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 excess MSRs that we own as a separate investment. We hold our servicer advance investments at our taxable REIT subsidiaries. Servicer advances are non-interest bearing and are 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, 2019 , our servicer advance investments had a carrying value of $169 million and were associated with a portfolio of residential mortgage loans with an unpaid principal balance of $7.94 billion . The outstanding servicer advance receivables associated with this investment were $152 million at December 31, 2019 , which were financed with short-term non-recourse securitization debt (see Note 13 for additional detail on this debt). The servicer advance receivables were comprised of the following types of advances at December 31, 2019 and December 31, 2018 : Table 10.2 – Components of Servicer Advance Receivables (In Thousands) December 31, 2019 December 31, 2018 Principal and interest advances $ 15,081 $ 144,336 Escrow advances (taxes and insurance advances) 96,732 94,828 Corporate advances 39,769 47,614 Total Servicer Advance Receivables $ 151,582 $ 286,778 We account for our servicer advance investments at fair value and during the years ended December 31, 2019 and 2018, we recorded $11 million and $1 million of interest income associated with these investments, respectively, and recorded a net market valuation gain of $3 million and a net market valuation loss of $1 million , respectively, 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 subsidiaries. At December 31, 2019 and December 31, 2018 , our MSRs had a fair value of $42 million and $60 million , respectively, and were associated with loans with an aggregate principal balance of $4.35 billion and $4.93 billion , respectively. The following table presents activity for MSRs for the years ended December 31, 2019 , 2018 , and 2017 . Table 10.3 – Activity for MSRs Years Ended December 31, (In Thousands) 2019 2018 2017 Balance at beginning of period $ 60,281 $ 63,598 $ 118,526 Additions 868 328 8,026 Sales — (1,077 ) (52,788 ) Changes in fair value due to: Changes in assumptions (1) (10,659 ) 4,434 (1,088 ) Other changes (2) (8,266 ) (7,002 ) (9,078 ) Balance at End of Period $ 42,224 $ 60,281 $ 63,598 (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, 2019 , 2018 , and 2017 . Table 10.4 – Components of MSR Income, net Years Ended December 31, (In Thousands) 2019 2018 2017 Servicing income $ 15,038 $ 15,372 $ 21,120 Cost of sub-servicer (1,465 ) (1,444 ) (2,828 ) Net servicing fee income 13,573 13,928 18,292 Market valuation changes of MSRs (18,856 ) (2,508 ) (10,166 ) Market valuation changes of associated derivatives (1) 8,596 (4,734 ) (568 ) MSR reversal of provision for repurchases 208 390 302 MSR Income, Net $ 3,521 $ 7,076 $ 7,860 (1) MSR income, net is included in Other income on our consolidated statements of income. 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, beginning in 2018, we invested in excess MSRs associated with specified pools of multifamily loans. We account for our excess MSRs at fair value and during the year s ended December 31, 2019 and 2018, we recognized $8 million and $1 million of interest income, respectively, through Other interest income, and recorded a net market valuation loss of $3 million and a net market valuation gain of $2 million , respectively, through Investment fair value changes, net on our consolidated statements of income. Investment in Multifamily Loan Fund In January 2019, we invested in a limited partnership created to acquire 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 $41 million at December 31, 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 and the limited partners may acquire the subordinate securities issued in any such securitization. We account for our ownership interest in this partnership 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, 2019 , the carrying amount of our investment in the partnership was $40 million . We have elected to record our share of earnings or losses from this investment on a one-quarter lag. During the year ended December 31, 2019 , we recorded $1 million of income associated with this investment in Other income on our consolidated statements of income. Shared Home Appreciation Options In the third quarter of 2019, we entered into a flow purchase agreement to acquire shared home appreciation options. Under this arrangement, our counterparty purchases an option to buy a fractional interest in a homeowner's ownership interest in residential property, and subsequently the counterparty sells the option contract to us. Pursuant to the terms of the option contract, we share in both home price appreciation and depreciation. At December 31, 2019 , we had acquired $43 million of shared home appreciation options under this flow purchase agreement and had an outstanding commitment to fund up to an additional $7 million under this agreement. We account for these investments under the fair value option and during the year ended December 31, 2019 , we recorded a net market valuation gain of $1 million related to these assets through Investment fair value changes, 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. We accounted for this subordinated participation interest as a loan receivable at amortized cost, and all associated interest income was recorded as a component of Other interest income in our consolidated statements of income. During the first quarter of 2019, our agreement associated with this investment was terminated and the balance outstanding under this agreement was repaid. 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 . In March 2019, we closed on our option to acquire the remaining 80% interest in 5 Arches. See Note 2 for discussion of this acquisition. During 2018 and through February 28, 2019, we accounted for our minority ownership interest in 5 Arches using the equity method of accounting as we were able to exert significant influence over but did not control the activities of the investee. During the period from January 1, 2019 to February 28, 2019 and for the year ended December 31, 2018, we recorded $0.3 million and $0.6 million of gross income, respectively, and, including amortization of certain intangible assets, recorded $0.1 million and $0.4 million of net earnings, respectively, in Other income on our consolidated statements of income.

Derivative Financial Instrument

Derivative Financial Instruments	12 Months Ended
	Dec. 31, 2019
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, 2019 and December 31, 2018 . Table 11.1 – Fair Value and Notional Amount of Derivative Financial Instruments December 31, 2019 December 31, 2018 Fair Value Notional Amount Fair Value Notional Amount (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 17,095 $ 1,399,000 $ 28,211 $ 2,106,500 TBAs 5,755 2,445,000 4,665 520,000 Interest rate futures 777 213,700 — — Swaptions 1,925 1,065,000 — — Assets - Other Derivatives Loan purchase and interest rate lock commitments 10,149 1,537,162 2,913 331,161 Total Assets $ 35,701 $ 6,659,862 $ 35,789 $ 2,957,661 Liabilities - Cash Flow Hedges Interest rate swaps $ (51,530 ) $ 139,500 $ (34,492 ) $ 139,500 Liabilities - Risk Management Derivatives Interest rate swaps (97,235 ) 2,314,300 (36,416 ) 1,742,000 TBAs (13,359 ) 4,160,000 (13,215 ) 935,000 Interest rate futures (10 ) 12,300 — — Liabilities - Other Derivatives Loan purchase commitments (1,290 ) 303,394 (732 ) 137,224 Total Liabilities $ (163,424 ) $ 6,929,494 $ (84,855 ) $ 2,953,724 Total Derivative Financial Instruments, Net $ (127,723 ) $ 13,589,356 $ (49,066 ) $ 5,911,385 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, 2019 , we were party to swaps and swaptions with an aggregate notional amount of $4.78 billion , TBA agreements sold with an aggregate notional amount of $6.61 billion , and interest rate futures contracts with an aggregate notional amount of $226 million . 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 . For the years ended December 31, 2019 , 2018 , and 2017 , risk management derivatives had a net market valuation loss of $134 million , a net market valuation gain of $40 million , and a net market valuation loss of $31 million , respectively. These market valuation gains and losses are recorded in Mortgage banking activities, net, Investment fair value changes, net and Other income on our consolidated statements of income. Loan Purchase, Interest Rate Lock, and Forward Sale Commitments LPCs, IRLCs, and FSCs that qualify as derivatives are recorded at their estimated fair values. For the years ended December 31, 2019 , 2018 , and 2017 , LPCs, IRLCs, and FSCs had a net market valuation gain of $62 million , a net market valuation loss of $1 million , and a net market valuation gain of $38 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, 2019 , 2018 , and 2017 , changes in the values of designated cash flow hedges were negative $17 million , positive $9 million , and positive $1 million , respectively, and were recorded in Accumulated other comprehensive income, a component of equity. For interest rate agreements currently or previously designated as cash flow hedges, our total unrealized loss reported in Accumulated other comprehensive income was $51 million and $34 million at December 31, 2019 and December 31, 2018 , 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, 2019 , 2018 , and 2017 . Table 11.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Years Ended December 31, (In Thousands) 2019 2018 2017 Net interest expense on cash flows hedges $ (2,847 ) $ (3,228 ) $ (4,602 ) Realized net losses reclassified from other comprehensive income — — (45 ) Total Interest Expense $ (2,847 ) $ (3,228 ) $ (4,647 ) 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, 2019 , we assessed this risk as remote and did not record a specific valuation adjustment. At December 31, 2019 , we had outstanding derivative agreements with nine 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, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets and Liabilities	Other Assets and Liabilities Other assets at December 31, 2019 and December 31, 2018 are summarized in the following table. Table 12.1 – Components of Other Assets (In Thousands) December 31, 2019 December 31, 2018 Margin receivable $ 209,776 $ 100,773 FHLBC stock 43,393 43,393 Pledged collateral 32,945 42,433 Investment receivable 23,330 6,959 Right-of-use asset 11,866 — REO 9,462 3,943 Fixed assets and leasehold improvements (1) 4,901 5,106 Other 12,590 15,218 Total Other Assets $ 348,263 $ 217,825 (1) Fixed assets and leasehold improvements had a basis of $11 million and accumulated depreciation of $7 million at December 31, 2019 . Accrued expenses and other liabilities at December 31, 2019 and December 31, 2018 are summarized in the following table. Table 12.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) December 31, 2019 December 31, 2018 Accrued compensation $ 33,888 $ 19,769 Contingent consideration 28,484 — Guarantee obligations 14,009 16,711 Lease liability 13,443 — Payable to minority partner 13,189 14,331 Residential bridge loan holdbacks 10,682 — Accrued taxes payable 5,268 423 Deferred tax liabilities 5,152 9,022 Residential loan and MSR repurchase reserve 4,268 4,189 Legal reserve 2,000 2,000 Margin payable 1,700 835 Other 14,155 11,439 Total Accrued Expenses and Other Liabilities $ 146,238 $ 78,719 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, as well as collateral pledged for certain interest rate agreements. In accordance with these arrangements, we are required to pledge collateral to secure our guarantee obligations and to meet margin requirements for our interest rate agreements. See Note 3 and Note 16 for additional information on our risk-sharing arrangements. Contingent Consideration The contingent consideration presented in the table above is related to our acquisition of 5 Arches in 2019. See Note 16 for additional information on our contingent consideration liabilities. Lease Liability and Right-of-Use Asset The lease liability and right-of-use asset presented in the tables above resulted from our adoption of ASU 2016-02, "Leases," in the first quarter of 2019. The lease liability is equal to the present value of our remaining lease payments discounted at our incremental borrowing rate and the right-of-use asset is equal to the lease liability adjusted for our deferred rent liability. These balances are reduced as lease payments are made. See Note 16 for additional information on leases. Residential Bridge Loan Holdbacks Residential bridge loan holdbacks represent loan amounts payable to residential bridge loan borrowers subject to the completion of various phases of property rehabilitation. Investment Receivable At December 31, 2019 , investment receivable primarily consisted of unsettled 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, 2019 , was $9 million , which included $0.5 million of REO from our Legacy Sequoia entities, $7 million from our residential bridge loan portfolio, $0.4 million from our consolidated Freddie Mac SLST entities, and $2 million from CAFL entities. At December 31, 2019 , there were four REO assets at our Legacy Sequoia entities, four residential bridge loan REO assets, three REO assets at our Freddie Mac SLST entities, and two REO assets at our CAFL entities recorded on our consolidated balance sheets. During the year ended December 31, 2019 , transfers into REO included $0.3 million from Legacy Sequoia entities, a $8 million residential bridge loan, and $0.5 million from Freddie Mac SLST entities. In connection with our acquisition of CoreVest during the fourth quarter of 2019, we acquired $3 million of REO associated with consolidated CAFL entities. During the year ended December 31, 2019 , there were Legacy Sequoia REO liquidations of $5 million , resulting in $1 million of unrealized gains which were recorded in Investment fair value changes, net, on our consolidated statements of income. At December 31, 2018 , our REO included 13 properties, 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 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, 2019 , the carrying value of their interests was $13 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 years ended December 31, 2019 and 2018, we allocated $1 million of gains and less than $0.1 million of losses to the co-investors, respectively, which were recorded in Other expenses on our consolidated statements of income.

Short-Term Debt

Short-Term Debt	12 Months Ended
	Dec. 31, 2019
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, 2019 , we had outstanding agreements with several counterparties and we were in compliance with all of the related covenants. The table below summarizes our short-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at December 31, 2019 and December 31, 2018 . Table 13.1 – Short-Term Debt December 31, 2019 (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 $ 185,894 $ 1,425,000 3.23 % 1/2020-10/2020 69 Business purpose residential loan warehouse (2) 8 814,118 1,475,000 4.11 % 12/2020-5/2022 489 Real estate securities repo (1) 10 1,176,579 — 2.94 % 1/2020-3/2020 23 Total Short-Term Debt Facilities 22 2,176,591 Servicer advance financing 1 152,554 400,000 3.56 % 11/2020 335 Total Short-Term Debt $ 2,329,145 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 Business purpose residential loan warehouse (2) 4 88,380 480,000 4.99 % 11/2019-6/2021 594 Real estate securities repo (1) 9 988,890 — 3.47 % 1/2019-3/2019 26 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 (1) Borrowings under our facilities are generally charged interest based on a specified margin over the one-month LIBOR interest rate. At December 31, 2019 , 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, 2019 . Borrowings under these facilities will be repaid as the underlying loans mature or are sold to third parties or transferred to securitizations. The following table below presents the value of loans and securities pledged as collateral under our short-term debt facilities at December 31, 2019 and December 31, 2018 . Table 13.2 – Collateral for Short-Term Debt (In Thousands) December 31, 2019 December 31, 2018 Collateral Type Held-for-sale residential loans $ 201,949 $ 935,132 Business purpose residential loans 988,179 125,404 Real estate securities On balance sheet 618,881 844,465 Sequoia Choice securitizations (1) 111,341 130,139 Freddie Mac SLST securitizations (1) 381,640 228,920 Freddie Mac K-Series securitizations (1) 252,284 17,521 CAFL securitizations (1) 127,840 — Total real estate securities owned 1,491,986 1,221,045 Total Collateral for Short-Term Debt $ 2,682,114 $ 2,281,581 (1) Represents securities we have retained from consolidated securitization entities. For GAAP purposes, we consolidate the loans and non-recourse ABS debt issued from these securitizations. For the years ended December 31, 2019 and 2018 , the average balances of our short-term debt facilities were $1.97 billion and $1.51 billion , respectively. At December 31, 2019 and December 31, 2018 , accrued interest payable on our short-term debt facilities was $6 million and $4 million , respectively. Servicer advance financing consists of non-recourse short-term securitization debt used to finance servicer advance investments. We consolidate the securitization entity that issued the debt, but the entity is independent of Redwood and the assets and liabilities are not owned by and are not legal obligations of Redwood. At December 31, 2019 , the fair value of servicer advances, cash and restricted cash collateralizing the securitization financing was $176 million . At December 31, 2019 , the accrued interest payable balance on this financing was $0.2 million and the unamortized capitalized commitment costs were $1 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. In November 2019, we repaid these $201 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 $3 million at December 31, 2019 . At both December 31, 2019 and December 31, 2018 , 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, 2019 . Table 13.3 – Short-Term Debt by Collateral Type and Remaining Maturities December 31, 2019 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for-sale residential loans $ 49,084 $ 110,446 $ 26,364 $ 185,894 Business purpose residential loans — — 814,118 814,118 Real estate securities 824,054 352,525 — 1,176,579 Total Secured Short-Term Debt 873,138 462,971 840,482 2,176,591 Servicer advance financing — — 152,554 152,554 Total Short-Term Debt $ 873,138 $ 462,971 $ 993,036 $ 2,329,145

Asset-Backed Securities Issued

Asset-Backed Securities Issued	12 Months Ended
	Dec. 31, 2019
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 as well as 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. Additionally, beginning in the fourth quarter of 2019, we consolidated certain CAFL 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 of each entity 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 the loans in these securitizations are based on the estimated fair value of the associated ABS issued we present on our balance sheet as well as the securities retained or owned at the securitization entities. The net impact to our income statement associated with our 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 and substantially all the ABS issued by the CAFL entities pay fixed rates of interest. 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 our consolidated securitization entities at December 31, 2019 and December 31, 2018 , along with other selected information, are summarized in the following table. Table 14.1 – Asset-Backed Securities Issued December 31, 2019 (Dollars in Thousands) Legacy Sequoia Sequoia Choice Freddie Mac SLST Freddie Mac K-Series CAFL Total Certificates with principal balance $ 420,056 $ 1,979,719 $ 1,842,682 $ 3,844,789 $ 1,875,007 $ 9,962,253 Interest-only certificates 1,282 16,514 30,291 217,891 90,134 356,112 Market valuation adjustments (18,873 ) 40,965 45,349 93,559 36,110 197,110 ABS Issued, Net $ 402,465 $ 2,037,198 $ 1,918,322 $ 4,156,239 $ 2,001,251 $ 10,515,475 Range of weighted average interest rates, by series 1.94% to 3.26% 4.40% to 5.05% 3.50 % 3.35% to 4.35% 3.25% to 5.36% Stated maturities 2024 - 2036 2047 - 2049 2028 - 2029 2025 - 2049 2022 - 2048 Number of series 20 9 2 5 10 December 31, 2018 (Dollars in Thousands) Legacy Sequoia Sequoia Freddie Mac SLST Freddie Mac K-Series CAFL 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 — 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, 2019 , the majority 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, 2019 and December 31, 2018 . Interest due on consolidated ABS issued is payable monthly. Table 14.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) December 31, 2019 December 31, 2018 Legacy Sequoia $ 395 $ 571 Sequoia Choice 7,732 7,180 Freddie Mac SLST 5,374 2,907 Freddie Mac K-Series 12,887 6,239 CAFL 7,298 — Total Accrued Interest Payable on ABS Issued $ 33,686 $ 16,897 The following table summarizes the carrying value components of the collateral for ABS issued and outstanding at December 31, 2019 and December 31, 2018 . Table 14.3 – Collateral for Asset-Backed Securities Issued December 31, 2019 (In Thousands) Legacy Sequoia Sequoia Choice Freddie Mac SLST Freddie Mac K-Series CAFL Total Residential loans $ 407,890 $ 2,291,463 $ 2,367,215 $ — $ — $ 5,066,568 Business purpose residential loans — — — — 2,192,552 2,192,552 Multifamily loans — — — 4,408,524 — 4,408,524 Restricted cash 143 27 — — — 170 Accrued interest receivable 655 9,824 7,313 13,539 9,572 40,903 REO 460 — 445 — 1,795 2,700 Total Collateral for ABS Issued $ 409,148 $ 2,301,314 $ 2,374,973 $ 4,422,063 $ 2,203,919 $ 11,711,417 December 31, 2018 (In Thousands) Legacy Sequoia Sequoia Freddie Mac SLST Freddie Mac K-Series CAFL 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

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2019
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, 2019 , 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, 2019 , our FHLB-member subsidiary 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, 2019 , $2.00 billion of advances were outstanding under this agreement, which were classified as long-term debt, with a weighted average interest rate of 1.88% and a weighted average maturity of approximately six years . 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 seven 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, 2019 , total advances under this agreement were secured by residential mortgage loans with a fair value of $2.10 billion , single-family rental loans with a fair value of $211 million , real estate securities with a fair value of $39 million , and $59 million of restricted cash. 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, 2019 , 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, 2019 . Table 15.1 – Maturities of FHLBC Borrowings by Year (In Thousands) December 31, 2019 2024 $ 470,171 2025 887,639 2026 642,189 Total FHLBC Borrowings $ 1,999,999 Subordinate Securities Financing Facility In the third quarter of 2019, a subsidiary of Redwood entered into a repurchase agreement providing non-mark-to-market recourse debt financing. The financing is fully and unconditionally guaranteed by Redwood, with an interest rate of approximately 4.21% through September 2022. The financing facility may be terminated, at our option, in September 2022, and has a final maturity in September 2024, provided that the interest rate on amounts outstanding under the facility increases between October 2022 and September 2024. At December 31, 2019 , we had borrowings under this facility totaling $185 million , net of $1 million of deferred issuance costs, for a carrying value of $184 million . At December 31, 2019 , the fair value of real estate securities pledged as collateral under this long-term debt facility was $250 million , which included $125 million of securities retained from our consolidated Sequoia Choice securitizations. This facility is included in Long-term debt, net on our consolidated balance sheets at December 31, 2019 . Convertible Notes In September 2019, RWT Holdings, Inc., a wholly-owned subsidiary of Redwood Trust, Inc., issued $201 million principal amount of 5.75% exchangeable senior notes due 2025 . These exchangeable notes require semi-annual interest payments at a fixed coupon rate of 5.75% until maturity or exchange, which will be no later than October 1, 2025 . After deducting the underwriting discount and offering costs, we received $195 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, 2019 , these notes were exchangeable at the option of the holder at an exchange rate of 55.1967 common shares per $1,000 principal amount of exchangeable senior notes (equivalent to an exchange price of $18.12 per common share). Upon exchange of these notes by a holder, the holder will receive shares of our common stock. At December 31, 2019 , the outstanding principal amount of these notes was $201 million . At December 31, 2019 , the accrued interest payable balance on this debt was $3 million and the unamortized deferred issuance costs were $6 million . 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, 2019 , the outstanding principal amount of these notes was $200 million and the accrued interest payable on this debt was $5 million . At December 31, 2019 , the unamortized deferred issuance costs and debt discount were $4 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, 2019 , these notes were convertible at the option of the holder at a conversion rate of 54.3346 common shares per $1,000 principal amount of convertible senior notes (equivalent to a conversion price of $18.40 per common share). Upon conversion of these notes by a holder, the holder will receive shares of our common stock. At December 31, 2019 , the outstanding principal amount of these notes was $245 million . At December 31, 2019 , the accrued interest payable balance on this debt was $4 million and the unamortized deferred issuance costs were $5 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 required semi-annual interest payments at a fixed coupon rate of 5.625% . 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 was approximately 6.3% per annum. These notes were exchangeable at the option of the holder at an exchange rate of 46.5404 common shares per $1,000 principal amount of exchangeable senior notes (equivalent to an exchange price of $21.49 per common share). Upon exchange of these notes by a holder, the holder would have received 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. In November 2019, we repaid these $201 million exchangeable notes and all related accrued interest in full. Trust Preferred Securities and Subordinated Notes At December 31, 2019 , 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, 2019 and December 31, 2018 , the accrued interest payable balance on our trust preferred securities and subordinated notes was $1 million .

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Commitments At December 31, 2019 , we were obligated under eight non-cancelable operating leases with expiration dates through 2028 for $16 million of cumulative lease payments. Our operating lease expense was $3 million , $2 million , and $2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The following table presents our future lease commitments at December 31, 2019 . Table 16.1 – Future Lease Commitments by Year (In Thousands) December 31, 2019 2020 $ 3,395 2021 2,275 2022 1,706 2023 1,520 2024 1,558 2025 and thereafter 5,678 Total Lease Commitments 16,132 Less: Imputed interest (2,689 ) Lease Liability $ 13,443 Leasehold improvements for our offices are amortized into expense over the lease term. There were $3 million of unamortized leasehold improvements at December 31, 2019 . For the years ended December 31, 2019 , 2018 , and 2017 , we recognized $0.4 million , $0.2 million , and $0.2 million of leasehold amortization expense, respectively. During the first quarter of 2019, we adopted ASU 2016-02, "Leases," which required us to recognize a lease liability that was equal to the present value of our remaining lease payments of $16 million discounted at various incremental borrowing rates, and a right-of-use asset, which was equal to our lease liability adjusted for our deferred rent liability. We elected to apply the new guidance using the optional transition method, which permits lessees to measure the lease liability and right-of-use asset at January 1, 2019, without adjusting the comparative periods presented. We elected the package of practical expedients under the transition guidance within this standard, which allowed us to carry forward the classifications of each of our four existing leases as operating leases and to continue to expense lease payments on a straight-line basis. As one of our operating leases qualified for the short-term lease exception under this guidance, we continued to account for this lease under legacy GAAP and did not include this lease in our calculation of the lease liability and right-of-use asset. We assumed five new leases during 2019 as a result of the acquisitions of 5 Arches and CoreVest. We determined that each of these leases qualified as operating leases under the new guidance and accounted for them as such. At December 31, 2019 , our lease liability was $13 million , which was a component of Accrued expenses and other liabilities, and our right-of-use asset was $12 million , which was a component of Other assets. We determined that no ne of our leases contained an implicit interest rate and used a discount rate equal to our incremental borrowing rate on a collateralized basis to determine the present value of our total lease payments. As such, we determined the applicable discount rate for each of our leases using a swap rate plus an applicable spread for borrowing arrangements secured by our real estate loans and securities for a length of time equal to the remaining lease term on the date of adoption. At December 31, 2019 , the weighted-average remaining lease term and weighted-average discount rate for our leases was 7 years and 5.3% , respectively. Commitment to Fund Residential Bridge Loans As of December 31, 2019 , we had commitments to fund up to $173 million of additional advances on existing residential bridge loans. These commitments are generally subject to loan agreements with covenants regarding the financial performance of the customer and other terms regarding advances that must be met before we fund the commitment. We may also advance funds related to loans sold under a separate loan sale agreement that are generally repaid immediately by the loan purchaser and do not generally expose us to loss. The outstanding commitments related to these loans that we may temporarily fund totaled approximately $56 million at December 31, 2019 . 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). In connection with this investment, we are 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. In the first quarter of 2019, we invested in a partnership created to acquire floating rate, light-renovation multifamily loans from Freddie Mac (see Note 10 for additional detail). At December 31, 2019 , we had an outstanding commitment to fund an additional $37 million to the partnership. Additionally, in connection with this transaction, we have made a guarantee to Freddie Mac in the event of losses incurred on the loans that exceed the equity available in the partnership to absorb such losses. At December 31, 2019 , the carrying value of this guarantee was $0.1 million . We believe the likelihood of performance under the guarantee is remote. Our maximum loss exposure from this guarantee arrangement is $135 million . 5 Arches Contingent Consideration As part of the consideration for our acquisition of 5 Arches, we are committed to make earn-out payments up to $29 million , payable in a mix of cash and Redwood common stock, which will be calculated following each of the first two anniversaries of the option closing date based on loan origination volumes exceeding certain specified thresholds. These contingent earn-out payments are classified as a contingent consideration liability and carried at fair value. At December 31, 2019 , our estimated fair value of this contingent liability was $28 million . For the year ended December 31, 2019 , we recorded contingent consideration expense of $3 million related to our valuation of this liability through Other expenses on our consolidated statements of income. Commitment to Fund Shared Home Appreciation Options In the third quarter of 2019, we entered into a flow purchase agreement to acquire shared home appreciation options. The counterparty purchases an option to buy a fractional interest in a homeowner's ownership interest in residential property, and subsequently the counterparty sells the option contract to us. Pursuant to the terms of the option contract, we share in both home price appreciation and depreciation. At December 31, 2019 , we had acquired $45 million of shared home appreciation options under this agreement, which are included in Other Investments on our consolidated balance sheets. At December 31, 2019 , we had an outstanding commitment to fund up to an additional $7 million under this agreement. 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 included a commitment to participate in (and an obligation to fund) a designated amount of the loan seller's borrowings under this warehouse credit facility. Our commitment to participate in this facility was terminated in the first quarter of 2019. 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, 2019 , 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, 2019 , we had not incurred any losses under these arrangements. For the years ended December 31, 2019 , 2018 , and 2017 , other income related to these arrangements was $4 million , $4 million , and $3 million , respectively, and was included in Other income on our consolidated statements of income. For the years ended December 31, 2019 , 2018 , and 2017 , we recorded net market valuation losses related to these arrangements of $0.2 million , $0.4 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, 2019 , the loans had an unpaid principal balance of $1.55 billion and a weighted average FICO score of 759 (at origination) and LTV ratio of 76% (at origination). At December 31, 2019 , $7 million of the loans were 90 days or more delinquent, of which $2 million were in foreclosure. At December 31, 2019 , the carrying value of our guarantee obligation was $14 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, 2019 and December 31, 2018 , assets of such SPEs totaled $48 million and $47 million , respectively, and liabilities of such SPEs totaled $14 million and $17 million , respectively. Loss Contingencies — Residential Repurchase Reserve We maintain a repurchase reserve for potential obligations arising from representation and warranty violations related to residential loans we have sold to securitization trusts or third parties and for conforming residential loans associated with MSRs that we have purchased from third parties. We do not originate residential loans and we believe the initial risk of loss due to loan repurchases (i.e., due to a breach of representations and warranties) would generally be a contingency to the companies from whom we acquired the loans. However, in some cases, for example, where loans were acquired from companies that have since become insolvent, repurchase claims may result in our being liable for a repurchase obligation. At both December 31, 2019 and December 31, 2018 , our repurchase reserve associated with our residential loans and MSRs was $4 million and was recorded in Accrued expenses and other liabilities on our consolidated balance sheets. We received 15 repurchase requests during the year ended December 31, 2019 and 11 during the year ended December 31, 2018 . During the years ended December 31, 2019 , 2018 , and 2017 , we repurchased zero loans, two loans, and one loan, respectively. During the years ended December 31, 2019 , 2018 , and 2017 , we recorded $0.1 million , $0.7 million , and $0.3 million of reversals of repurchase provisions, respectively, that were recorded in Mortgage banking activities, net and Other income on our consolidated statements of income and had charge-offs of zero , zero , and $0.2 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. 8% The Seattle Certificate was issued with an original principal amount of approximately $133 million , and, at December 31, 2019 , approximately $128 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. The Schwab Certificate was issued with an original principal amount of approximately $15 million , and, at December 31, 2019 , 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. We believe this matter was subsequently resolved and the plaintiffs withdrew their remaining claims. 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 resolution 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, 2019 , 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, 2019
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, 2019 and 2018 . Table 17.1 – Changes in Accumulated Other Comprehensive Income by Component Years Ended December 31, 2019 2018 (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 $ 95,342 $ (34,045 ) $ 128,201 $ (42,953 ) Other comprehensive income (loss) 17,077 (16,894 ) (7,298 ) 8,908 Amounts reclassified from other (1) (19,967 ) — (25,561 ) — Net current-period other comprehensive income (loss) (2,890 ) (16,894 ) (32,859 ) 8,908 Balance at End of Period $ 92,452 $ (50,939 ) $ 95,342 $ (34,045 ) (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, 2019 and 2018 . 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 2019 2018 Net Realized (Gain) Loss on AFS Securities Other than temporary impairment (1) Investment fair value changes, net $ — $ 89 Gain on sale of AFS securities Realized gains, net (19,967 ) (27,178 ) Gain on sale of AFS securities Provision for income taxes — 1,528 $ (19,967 ) $ (25,561 ) (1) For the year ended December 31, 2019 , there were no other-than-temporary impairments. 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. Issuance of Common Stock In 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 year ended December 31, 2019 , we issued 2,259,758 common shares for net proceeds of approximately $36 million through ATM offerings. During the year ended December 31, 2018, we issued 1,550,819 common shares for net proceeds of approximately $25 million through ATM offerings. At December 31, 2019 , approximately $88 million remained outstanding for future offerings under this program. 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 . On September 3, 2019, we sold 14,375,000 shares of common stock in an underwritten public offering, resulting in net proceeds of approximately $228 million . During the year ended December 31, 2018, we sold 7,187,500 shares of common stock in an underwritten public offering, resulting in net proceeds of approximately $117 million . On October 15, 2019, we issued 588,260 shares of restricted common stock to members of CoreVest management at a grant date fair market value of $16.48 per share, as a component of total consideration paid for the acquisition of CoreVest. The grant date fair value of these restricted stock awards was $10 million , which will be recognized as compensation expense over the two-year vesting period in accordance with GAAP. Direct Stock Purchase and Dividend Reinvestment Plan During the year ended December 31, 2019 , we issued 399,838 shares of common stock through our Direct Stock Purchase and Dividend Reinvestment Plan, resulting in net proceeds of approximately $6 million . Earnings per Common Share The following table provides the basic and diluted earnings per common share computations for the years ended December 31, 2019 , 2018 , and 2017 . Table 17.3 – Basic and Diluted Earnings per Common Share Years Ended December 31, (In Thousands, except Share Data) 2019 2018 2017 Basic Earnings per Common Share: Net income attributable to Redwood $ 169,183 $ 119,600 $ 140,406 Less: Dividends and undistributed earnings allocated to participating securities (4,797 ) (3,754 ) (3,632 ) Net income allocated to common shareholders $ 164,386 $ 115,846 $ 136,774 Basic weighted average common shares outstanding 101,120,744 78,724,912 76,792,957 Basic Earnings per Common Share $ 1.63 $ 1.47 $ 1.78 Diluted Earnings per Common Share: Net income attributable to Redwood $ 169,183 $ 119,600 $ 140,406 Less: Dividends and undistributed earnings allocated to participating securities (5,273 ) (4,283 ) (3,836 ) Add back: Interest expense on convertible notes for the period, net of tax 36,212 32,653 26,898 Net income allocated to common shareholders $ 200,122 $ 147,970 $ 163,468 Weighted average common shares outstanding 101,147,225 78,724,912 76,792,957 Net effect of dilutive equity awards 251,100 189,120 185,383 Net effect of assumed convertible notes conversion to common shares 35,382,269 31,113,738 24,996,668 Diluted weighted average common shares outstanding 136,780,594 110,027,770 101,975,008 Diluted Earnings per Common Share $ 1.46 $ 1.34 $ 1.60 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, 2019 , 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, 2019 , 2018 , and 2017 , 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, 2019 , 2018 , and 2017 , the number of outstanding equity awards that were antidilutive totaled 10,051 , 7,230 , and 5,843 , respectively. Stock Repurchases In February 2018, our Board of Directors approved an authorization for the repurchase of our common stock, increasing the total amount authorized for repurchases of common stock to $100 million , and also authorized the repurchase of outstanding debt securities, including convertible and exchangeable debt. This authorization increased the previous share repurchase authorization approved in February 2016 and has no expiration date. This repurchase authorization does not obligate us to acquire any specific number of shares or securities. Under this authorization, shares or securities may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. At December 31, 2019 , $100 million of the current authorization remained available for the repurchase of shares of our common stock.

Equity Compensation Plans

Equity Compensation Plans	12 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Equity Compensation Plans	Equity Compensation Plans At December 31, 2019 and December 31, 2018 , 3,637,480 and 4,616,776 shares of common stock, respectively, were available for grant under our Incentive Plan. The unamortized compensation cost of awards issued under the Incentive Plan and purchases under the Employee Stock Purchase Plan totaled $32 million at December 31, 2019 , as shown in the following table. Table 18.1 – Activities of Equity Compensation Costs by Award Type Year Ended December 31, 2019 (In Thousands) Restricted Stock Awards Restricted Stock Units Deferred Stock Units Performance Stock Units Employee Stock Purchase Plan Total Unrecognized compensation cost at beginning of period $ 3,498 $ 74 $ 14,489 $ 7,061 $ — $ 25,122 Equity grants — 4,233 11,230 5,275 173 20,911 Equity grant forfeitures — — (303 ) — — (303 ) Equity compensation expense (1,508 ) (773 ) (7,558 ) (3,390 ) (173 ) (13,402 ) Unrecognized Compensation Cost at End of Period $ 1,990 $ 3,534 $ 17,858 $ 8,946 $ — $ 32,328 At December 31, 2019 , the weighted average amortization period remaining for all of our equity awards was two years . Restricted Stock Awards ("RSAs") The following table summarizes the activities related to RSAs for the years ended December 31, 2019 , 2018 , and 2017 . Table 18.2 – Restricted Stock Awards Activities Years Ended December 31, 2019 2018 2017 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of period 334,606 $ 14.92 257,507 $ 15.23 204,515 $ 14.27 Granted — — 168,537 14.71 134,364 16.52 Vested (118,136 ) 15.05 (83,968 ) 15.46 (61,928 ) 14.97 Forfeited — — (7,470 ) 15.05 (19,444 ) 14.78 Outstanding at End of Period 216,470 $ 14.85 334,606 $ 14.92 257,507 $ 15.23 The expenses recorded for RSAs were $2 million , $2 million , and $1 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , there was $2 million of unrecognized compensation cost related to unvested RSAs. This cost will be recognized over a weighted average period of less than two years . Restrictions on shares of RSAs outstanding lapse through 2022 . Restricted Stock Units ("RSUs") The following table summarizes the activities related to RSUs for the years ended December 31, 2019 , 2018 , and 2017 . Table 18.3 – Restricted Stock Units Activities Years Ended December 31, 2019 2018 2017 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of period 4,876 $ 15.38 — $ — — $ — Granted 270,297 15.66 4,876 15.38 — — Vested — — — — — — Forfeited — — — — — — Outstanding at End of Period 275,173 $ 15.65 4,876 $ 15.38 — $ — The expenses recorded for RSUs were $1 million and less than $0.1 million for the years ended December 31, 2019 and 2018 , respectively. As of December 31, 2019 , there was $4 million of unrecognized compensation cost related to unvested RSUs. This cost will be recognized over a weighted average period of less than two years . Restrictions on shares of RSUs outstanding lapse through 2023 . Deferred Stock Units (“DSUs”) The following table summarizes the activities related to DSUs for the years ended December 31, 2019 , 2018 , and 2017 . Table 18.4 – Deferred Stock Units Activities Years Ended December 31, 2019 2018 2017 Units Weighted Units Weighted Units Weighted Outstanding at beginning of period 2,336,720 $ 15.58 1,878,491 $ 15.92 1,848,862 $ 16.46 Granted 733,096 16.06 670,254 15.53 565,921 16.01 Distributions (419,113 ) 15.96 (212,025 ) 18.37 (504,417 ) 18.09 Forfeitures (19,898 ) 15.96 — — (31,875 ) 14.80 Balance at End of Period 2,630,805 $ 15.66 2,336,720 $ 15.58 1,878,491 $ 15.92 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, 2019 and 2018 , the number of outstanding DSUs that were unvested was 1,344,743 and 1,155,098 , respectively. The weighted average grant-date fair value of these unvested DSUs was $15.76 and $15.18 at December 31, 2019 and 2018 , respectively. Unvested DSUs at December 31, 2019 will vest through 2023 . Expenses related to DSUs were $8 million , $8 million , and $6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. At December 31, 2019 , there was $18 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, 2019 and 2018 , the number of outstanding DSUs that had vested was 1,286,063 and 1,181,623 , respectively. Performance Stock Units (“PSUs”) At December 31, 2019 and December 31, 2018 , the target number of PSUs that were unvested was 839,070 and 725,616 , respectively. During 2019 , 2018 , and 2017 , 307,938 , 258,078 , and 273,054 target number of PSUs were granted, respectively, with per unit grant date fair values of $17.13 , $17.05 , and $13.24 , respectively. During the years ended December 31, 2019 , 2018 , and 2017 , there were no PSUs forfeited due to employee departures. With respect to 307,938 and 235,053 target number of PSUs granted in December 2019 and December 2018, respectively, 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, 2023 for the December 2019 awards and as of January 1, 2022 for the December 2018 awards. Vesting is 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 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 2019 PSUs of $17.13 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 2019 PSU grant, an implied volatility assumption of 15% (based on historical volatility), a risk-free rate of 1.68% (the three -year Treasury rate on the grant date), and a 0% dividend yield (the mathematical equivalent to reinvesting the dividends over the three -year performance period as is consistent with the terms of the PSUs) were used. The grant date fair 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 May 2018 and 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, the three-year performance period ended during the fourth quarter of 2019, resulting in the vesting of 222,769 shares of our common stock. 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. Expenses related to PSUs were $3 million for each of the years ended December 31, 2019 , 2018 , and 2017 . As of December 31, 2019 , there was $9 million of unrecognized compensation cost related to unvested PSUs. Employee Stock Purchase Plan ("ESPP") The ESPP allows a maximum of 600,000 shares of common stock to be purchased in aggregate for all employees. As of December 31, 2019 , 430,772 shares had been purchased, respectively, and there remained a negligible amount of uninvested employee contributions in the ESPP at December 31, 2019 . The following table summarizes the activities related to the ESPP for the years ended December 31, 2019 , 2018 , and 2017 . Table 18.5 – Employee Stock Purchase Plan Activities Years Ended December 31, (In Thousands) 2019 2018 2017 Balance at beginning of period $ 6 $ 4 $ 3 Employee purchases 524 375 305 Cost of common stock issued (526 ) (373 ) (304 ) Balance at End of Period $ 4 $ 6 $ 4 Executive Deferred Compensation Plan The following table summarizes the cash account activities related to the EDCP for the years ended December 31, 2019 , 2018 , and 2017 . Table 18.6 – EDCP Cash Accounts Activities Years Ended December 31, (In Thousands) 2019 2018 2017 Balance at beginning of period $ 2,484 $ 2,171 $ 2,088 New deferrals 789 759 750 Accrued interest 68 82 58 Withdrawals (887 ) (528 ) (725 ) Balance at End of Period $ 2,454 $ 2,484 $ 2,171 In 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, 2019
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, 2019 , 2018 , and 2017 . Table 19.1 – Mortgage Banking Activities Years Ended December 31, (In Thousands) 2019 2018 2017 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ 63,527 $ 21,808 $ 69,373 Risk management derivatives (2) (17,519 ) 35,248 (17,529 ) Other income (3) 1,735 2,567 2,064 Total residential mortgage banking activities, net 47,743 59,623 53,908 Business Purpose Mortgage Banking Activities, Net Changes in fair value of: Single-family rental loans, at fair value (1) 17,004 453 — Risk management derivatives (2) 1,796 (510 ) — Residential bridge loans, at fair value 4,518 — — Other income (4) 16,205 — — Total business purpose mortgage banking activities, net 39,523 (57 ) — Mortgage Banking Activities, Net $ 87,266 $ 59,566 $ 53,908 (1) For residential loans, includes changes in fair value for associated loan purchase and forward sale commitments. For single-family rental loans, includes changes in fair value for associated interest rate lock 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. (4) Amounts in this line item include other fee income from loan originations.

Investment Fair Value Changes

Investment Fair Value Changes	12 Months Ended
	Dec. 31, 2019
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, 2019 , 2018 and 2017 . Table 20.1 – Investment Fair Value Changes Years Ended December 31, (In Thousands) 2019 2018 2017 Investment Fair Value Changes, Net Changes in fair value of: Residential loans held-for-investment, at Redwood $ 58,891 $ (29,573 ) $ (5,765 ) Single-family rental loans held-for-investment 272 — — Residential bridge loans held-for-investment (2,139 ) (29 ) — Trading securities 56,046 (8,055 ) 39,526 Servicer advance investments 3,001 (701 ) — Excess MSRs (3,260 ) 1,823 — Shared home appreciation options 842 — — REO (1,045 ) — — Net investments in Legacy Sequoia entities (1) (1,545 ) (1,016 ) (8,027 ) Net investments in Sequoia Choice entities (1) 6,947 443 (323 ) Net investment in Freddie Mac SLST entities (1) 27,206 1,271 — Net investments in Freddie Mac K-Series entities (1) 21,430 931 — Net investments in CAFL entities (1) (3,636 ) — — Risk-sharing and other investments (341 ) (434 ) (1,484 ) Risk management derivatives, net (127,169 ) 9,740 (12,842 ) Valuation adjustments on commercial loans held-for-sale — — 300 Impairments on AFS securities — (89 ) (1,011 ) Investment Fair Value Changes, Net $ 35,500 $ (25,689 ) $ 10,374 (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.

Other Income Other Income

Other Income Other Income	12 Months Ended
	Dec. 31, 2019
Other Income and Expenses [Abstract]
Other Income	Other Income The following table presents the components of Other income recorded in our consolidated statements of income for the year s ended December 31, 2019 , 2018 and 2017 . Table 21.1 – Other Income Years Ended December 31, (In Thousands) 2019 2018 2017 MSR income, net $ 3,521 $ 7,076 $ 7,860 Risk share income 3,522 3,613 3,194 FHLBC capital stock dividend 2,169 1,763 1,382 Equity investment income 1,405 618 — 5 Arches loan administration fee income 4,400 — — Gain on re-measurement of investment in 5 Arches 2,441 — — Other 1,799 — — Other Income $ 19,257 $ 13,070 $ 12,436

General and Administrative Expe

General and Administrative Expenses and Other Expenses	12 Months Ended
	Dec. 31, 2019
Other Income and Expenses [Abstract]
General and Administrative Expenses and Other Expenses	General and Administrative Expenses and Other Expenses Components of our general and administrative, and other expenses for the years ended December 31, 2019 , 2018 and 2017 are presented in the following table. Table 22.1 – Components of General and Administrative Expenses and Other Expenses Years Ended December 31, (In Thousands) 2019 2018 2017 General and Administrative Expenses Fixed compensation expense $ 39,747 $ 24,445 $ 22,111 Variable compensation expense (1) 25,069 14,589 20,574 Equity compensation expense 13,402 12,388 10,141 Acquisition-related equity compensation expense (2) 1,010 — — Systems and consulting 10,746 7,451 7,073 Loan acquisition costs (3) 7,031 7,697 5,022 Office costs 6,310 4,705 4,248 Accounting and legal 5,450 5,529 2,842 Corporate costs 2,351 1,955 1,856 Other 7,556 4,023 3,289 Total General and Administrative Expenses 118,672 82,782 77,156 Other Expenses Amortization of purchase-related intangible assets (4) 8,699 177 — Contingent consideration expense (4) 3,217 — — Other 1,106 19 — Total Other Expenses 13,022 196 — Total General and Administrative Expenses and Other Expenses $ 131,694 $ 82,978 $ 77,156 (1) Variable compensation expense in 2017 includes $2 million of costs associated with the hiring of a new executive officer. (2) Acquisition-related equity compensation expense relates to 588,260 shares of restricted stock that were issued to members of CoreVest management as a component of the consideration paid to them for our purchase of their interests in CoreVest. The grant date fair value of these restricted stock awards was $10 million , which will be recognized as compensation expense over the two-year vesting period on a straight-line basis in accordance with GAAP. (3) Loan acquisition costs primarily includes underwriting and due diligence costs related to the acquisition of residential loans held-for-sale at fair value. (4) Contingent consideration expense relates to the acquisition of 5 Arches during 2019. Refer to Note 2 for additional detail.

Taxes

Taxes	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Taxes	Taxes Components of our net deferred tax assets at December 31, 2019 and December 31, 2018 are presented in the following table. Table 23.1 – Deferred Tax Assets (Liabilities) (In Thousands) December 31, 2019 December 31, 2018 Deferred Tax Assets Net operating loss carryforward – state $ 98,554 $ 103,858 Net operating loss carryforward – federal 82 — Real estate assets 676 2,400 Interest rate agreements — 2,320 Allowances and accruals 1,930 1,830 Goodwill and intangible assets 2,739 — Other 1,749 1,586 Total Deferred Tax Assets 105,730 111,994 Deferred Tax Liabilities Mortgage Servicing Rights (13,783 ) (20,068 ) Interest rate agreements (42 ) — Total Deferred Tax Liabilities (13,825 ) (20,068 ) Valuation allowance (97,057 ) (100,948 ) Total Deferred Tax Asset (Liability), net of Valuation Allowance $ (5,152 ) $ (9,022 ) The deferred tax assets and liabilities reported above, with the exception of the state net operating loss ("NOL") 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 NOL 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, 2019 , 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 2019 and 2018 , we are reporting net federal ordinary and capital deferred tax liabilities ("DTLs") at December 31, 2019 and December 31, 2018 and consequently no valuation allowance was recorded against any federal DTA in either of these periods. Consistent with prior periods, at December 31, 2019 , 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, 2016 to 2019 , and State, 2015 to 2019 ) and, at December 31, 2019 and December 31, 2018 , concluded that we had no uncertain tax positions that resulted in material unrecognized tax benefits. At December 31, 2019 , our federal NOL carryforward at the REIT was $28 million , which will expire in 2029 . In order to utilize NOLs at the REIT, taxable income must exceed dividend distributions. At December 31, 2019 , our taxable REIT subsidiaries had $0.4 million of federal NOLs, which will carry forward indefinitely. Redwood and its taxable subsidiaries accumulated an estimated state NOL of $1.15 billion at December 31, 2019 . 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, 2019 , 2018 , and 2017 . Table 23.2 – Provision for Income Taxes Years Ended December 31, (In Thousands) 2019 2018 2017 Current Provision for Income Taxes Federal $ 12,036 $ 11,387 $ 512 State 897 820 361 Total Current Provision for Income Taxes 12,933 12,207 873 Deferred (Benefit) Provision for Income Taxes Federal (3,976 ) (1,419 ) 10,991 State (1,517 ) 300 (112 ) Total Deferred (Benefit) Provision for Income Taxes (5,493 ) (1,119 ) 10,879 Total Provision for Income Taxes $ 7,440 $ 11,088 $ 11,752 The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at December 31, 2019 , 2018 , and 2017 . Table 23.3 – Reconciliation of Statutory Tax Rate to Effective Tax Rate December 31, 2019 December 31, 2018 December 31, 2017 Federal statutory rate 21.0 % 21.0 % 34.0 % State statutory rate, net of Federal tax effect 8.6 % 8.6 % 7.2 % Differences in taxable (loss) income from GAAP income (2.1 )% (1.7 )% (3.9 )% Change in valuation allowance (2.2 )% 1.9 % (1.0 )% Dividends paid deduction (21.1 )% (21.3 )% (23.4 )% Federal statutory rate change — % — % (5.2 )% Effective Tax Rate 4.2 % 8.5 % 7.7 % 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%

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Segment Information	Segment Information Redwood operates in four segments: Residential Lending, Business Purpose Lending, Multifamily Investments, and Third-Party Residential Investments. Beginning in the fourth quarter of 2019, we reorganized our segments to align with changes in how we view our business for making operating decisions and assessing performance, and conformed the presentation of prior periods. 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 four 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 indirect general and administrative expenses and other expense. The following tables present financial information by segment for the years ended December 31, 2019 , 2018 , and 2017 . Table 24.1 – Business Segment Financial Information Year Ended December 31, 2019 (In Thousands) Residential Lending Business Purpose Lending Multifamily Investments Third-Party Residential Investments Corporate/ Other Total Interest income $ 268,559 $ 54,372 $ 161,692 $ 120,009 $ 17,649 $ 622,281 Interest expense (192,359 ) (35,663 ) (151,980 ) (85,388 ) (14,418 ) (479,808 ) Net interest income 76,200 18,709 9,712 34,621 3,231 142,473 Non-interest income Mortgage banking activities, net 47,743 39,523 — — — 87,266 Investment fair value changes, net (27,920 ) (6,722 ) 27,097 44,662 (1,617 ) 35,500 Other income 9,210 5,852 1,484 — 2,711 19,257 Realized gains, net 8,292 — 134 15,395 — 23,821 Total non-interest income, net 37,325 38,653 28,715 60,057 1,094 165,844 General and administrative expenses (30,671 ) (30,655 ) (1,498 ) (2,843 ) (53,005 ) (118,672 ) Other expenses — (8,521 ) — (1,106 ) (3,395 ) (13,022 ) Provision for income taxes (4,074 ) (947 ) (11 ) (2,408 ) — (7,440 ) Segment Contribution $ 78,780 $ 17,239 $ 36,918 $ 88,321 $ (52,075 ) Net Income $ 169,183 Non-cash amortization income (expense), net $ 3,669 $ (9,173 ) $ (1 ) $ 6,957 $ (4,813 ) $ (3,361 ) Year Ended December 31, 2018 (In Thousands) Residential Lending Business Purpose Lending Multifamily Investments Third-Party Residential Investments Corporate/ Total Interest income $ 245,124 $ 4,588 $ 40,050 $ 68,919 $ 20,036 $ 378,717 Interest expense (158,498 ) (2,252 ) (34,324 ) (27,446 ) (16,519 ) (239,039 ) Net interest income 86,626 2,336 5,726 41,473 3,517 139,678 Non-interest income Mortgage banking activities, net 59,623 (57 ) — — — 59,566 Investment fair value changes, net (21,686 ) (29 ) 3,979 (6,957 ) (996 ) (25,689 ) Other income 12,452 — — — 618 13,070 Realized gains, net 7,709 — — 19,332 — 27,041 Total non-interest income (loss), net 58,098 (86 ) 3,979 12,375 (378 ) 73,988 General and administrative expenses (32,139 ) (2,597 ) (869 ) (2,855 ) (44,322 ) (82,782 ) Other expenses — — — (18 ) (178 ) (196 ) Provision for income taxes (8,033 ) — (16 ) (3,039 ) — (11,088 ) Segment Contribution $ 104,552 $ (347 ) $ 8,820 $ 47,936 $ (41,361 ) Net Income $ 119,600 Non-cash amortization income (expense), net $ 4,486 $ (290 ) $ (1 ) $ 12,295 $ (4,111 ) $ 12,379 Year Ended December 31, 2017 (In Thousands) Residential Lending Business Purpose Lending Multifamily Investments Third-Party Residential Investments Corporate/ Total Interest income $ 158,819 $ — $ 9,170 $ 60,661 $ 19,407 $ 248,057 Interest expense (66,364 ) — (6,107 ) (21,512 ) (14,833 ) (108,816 ) Net interest income 92,455 — 3,063 39,149 4,574 139,241 Non-interest income Mortgage banking activities, net 53,908 — — — — 53,908 Investment fair value changes, net (25,466 ) — 16,196 27,684 (8,040 ) 10,374 Other income 12,436 — — — — 12,436 Realized gains, net 3,907 — — 10,200 (752 ) 13,355 Total non-interest income (loss), net 44,785 — 16,196 37,884 (8,792 ) 90,073 General and administrative expenses (28,622 ) — (425 ) (2,028 ) (46,081 ) (77,156 ) Provision for income taxes (6,641 ) — (238 ) (4,873 ) — (11,752 ) Segment Contribution $ 101,977 $ — $ 18,596 $ 70,132 $ (50,299 ) Net Income $ 140,406 Non-cash amortization income (expense), net $ 4,946 $ — $ (1 ) $ 15,927 $ (3,410 ) $ 17,462 The following table presents the components of Corporate/Other for the years ended December 31, 2019 , 2018 , and 2017 . Table 24.2 – Components of Corporate/Other Years Ended December 31, 2019 2018 2017 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 17,649 $ — $ 17,649 $ 20,036 $ — $ 20,036 $ 19,407 $ — $ 19,407 Interest expense (14,418 ) — (14,418 ) (16,519 ) — (16,519 ) (14,789 ) (44 ) (14,833 ) Net interest income (loss) 3,231 — 3,231 3,517 — 3,517 4,618 (44 ) 4,574 Non-interest income Investment fair value changes, net (1,545 ) (72 ) (1,617 ) (1,016 ) 20 (996 ) (8,027 ) (13 ) (8,040 ) Other income — 2,711 2,711 — 618 618 — — — Realized gains, net — — — — — — — (752 ) (752 ) Total non-interest (loss) income, net (1,545 ) 2,639 1,094 (1,016 ) 638 (378 ) (8,027 ) (765 ) (8,792 ) General and administrative expenses — (53,005 ) (53,005 ) — (44,322 ) (44,322 ) — (46,081 ) (46,081 ) Other expenses — (3,395 ) (3,395 ) — (178 ) (178 ) — — — Total $ 1,686 $ (53,761 ) $ (52,075 ) $ 2,501 $ (43,862 ) $ (41,361 ) $ (3,409 ) $ (46,890 ) $ (50,299 ) (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, 2019 and December 31, 2018. Table 24.3 – Supplemental Segment Information (In Thousands) Residential Lending Business Purpose Lending Multifamily Investments Third-Party Residential Investments Corporate/ Total December 31, 2019 Residential loans $ 4,939,745 $ — $ — $ 2,367,215 $ 407,890 $ 7,714,850 Business purpose residential loans — 3,506,743 — — — 3,506,743 Multifamily loans — — 4,408,524 — — 4,408,524 Real estate securities 229,074 — 404,128 466,672 — 1,099,874 Other investments 42,224 21,002 61,018 233,886 — 358,130 Goodwill and intangible assets — 161,464 — — — 161,464 Total assets 5,410,540 3,786,641 4,889,330 3,139,616 769,313 17,995,440 December 31, 2018 Residential loans $ 5,512,116 $ — $ — $ 1,222,668 $ 519,958 $ 7,254,742 Business purpose residential loans — 141,258 — — — 141,258 Multifamily loans — — 2,144,598 — — 2,144,598 Real estate securities 364,308 — 429,079 659,107 — 1,452,494 Other investments 99,984 10,754 15,092 312,688 — 438,518 Total assets 6,186,889 160,950 2,600,150 2,232,276 757,141 11,937,406

Quarterly Financial Data - Unau

Quarterly Financial Data - Unaudited	12 Months Ended
	Dec. 31, 2019
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, 2019 Operating results: Interest income $ 192,581 $ 150,117 $ 148,542 $ 131,041 Interest expense (147,708 ) (116,604 ) (116,220 ) (99,276 ) Net interest income 44,873 33,513 32,322 31,765 Non-interest income 58,052 30,029 29,984 47,779 General and administrative, and other expenses (49,444 ) (29,346 ) (28,707 ) (24,197 ) Net income 49,143 34,310 31,266 54,464 Per share data: Net income – basic $ 0.42 $ 0.33 $ 0.31 $ 0.57 Net income – diluted 0.38 0.31 0.30 0.49 Regular dividends declared per common share 0.30 0.30 0.30 0.30 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 (17,538 ) 32,327 19,527 39,672 General, administrative, and other expenses (19,378 ) (21,561 ) (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

Schedule IV - Mortgage Loans On

Schedule IV - Mortgage Loans On Real Estate	12 Months Ended
	Dec. 31, 2019
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 299 2.875 % to 6.00% 2041-01 - 2048-09 $ 232,581 $ 971 Fixed loans 2,641 2.75 % to 6.75% 2026-01 - 2049-05 1,879,316 614 At Legacy Sequoia (2) : ARM loans 2,186 1.25 % to 6.00% 2020-01 - 2036-05 402,837 9,803 Hybrid ARM loans 12 3.63 % to 5.13% 2033-07 - 2034-06 5,053 — At Sequoia Choice (2) : Fixed loans 3,156 2.75 % to 6.75% 2035-04 - 2049-09 2,291,463 6,756 At Freddie Mac SLST (3) : Fixed loans 14,502 2.00 % to 11.00% 2019-11 - 2059-10 2,367,215 135,175 Total Residential Loans Held-for-Investment $ 7,178,465 $ 153,319 Residential Loans Held-for-Sale (4) : ARM loans 2 3.38 % to 3.50% 2032-11 - 2032-11 $ 105 $ — Hybrid ARM loans 115 3.00 % to 7.00% 2047-04 - 2049-12 93,755 — Fixed loans 554 3.20 % to 7.13% 2034-05 - 2050-01 442,525 747 Total Residential Loans Held-for-Sale $ 536,385 $ 747 Single-Family Rental Loans Held-for-Sale (4) : Fixed loans 201 4.35 % to 7.63% 2024-01 - 2050-01 $ 331,565 $ 1,818 Total Single-Family Rental Loans Held-for-Sale $ 331,565 $ 1,818 Single-Family Rental Loans Held-for-Investment: At Redwood (1) : Fixed loans 107 3.93 % to 7.47% 2023-09 - 2030-01 $ 237,620 $ — At CAFL (2) : Fixed loans 783 4.31 % to 7.57% 2019-11 - 2029-11 2,192,552 29,039 Total Single-Family Rental Loans Held-for-Investment $ 2,430,172 $ 29,039 Residential Bridge Loans Held-for-Investment (1) : Fixed loans 2,653 5.79 % to 13.00% 2018-10 - 2022-01 $ 745,006 $ 8,989 Total Residential Bridge Loans Held-for-Investment $ 745,006 $ 8,989 Multifamily Loans Held-for-Investment (3) : At Freddie Mac K-Series: Fixed loans 279 3.29 % to 4.94% 2023-02 - 2029-10 $ 4,408,524 $ — Total Multifamily Loans Held-for-Investment $ 4,408,524 $ — (1) For our held-for-investment residential, single-family rental, and residential bridge loans at Redwood, the aggregate tax basis for Federal income tax purposes at December 31, 2019 was $2.07 billion , $238 million , and $746 million , respectively. (2) For our held-for-investment loans at consolidated Legacy Sequoia, Sequoia Choice, and CAFL entities, the aggregate tax basis for Federal income tax purposes at December 31, 2019 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 real estate securities issued by these entities and therefore, the tax basis in these loans was zero at December 31, 2019 . (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, 2019 , 2018 , and 2017 . Years Ended December 31, (In Thousands) 2019 2018 2017 Balance at beginning of period $ 9,540,598 $ 5,115,210 $ 3,890,751 Additions during period: Originations/acquisitions 12,911,261 10,607,896 5,741,427 Deductions during period: Sales (5,218,797 ) (5,426,304 ) (3,982,683 ) Principal repayments (1,851,278 ) (843,984 ) (576,620 ) Transfers to REO (7,552 ) (4,104 ) (4,219 ) Changes in fair value, net 255,885 91,884 46,554 Balance at end of period $ 15,630,117 $ 9,540,598 $ 5,115,210

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	The consolidated financial statements presented herein are at December 31, 2019 and December 31, 2018 , and for the years ended December 31, 2019 , 2018 , and 2017 . 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, 2019 and 2018 , 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 ("Sequoia Choice"). We also consolidate the assets and liabilities of certain Freddie Mac K-Series and Freddie Mac Seasoned Loans Structured Transaction ("SLST") securitizations we invested in beginning in 2018. Finally, we consolidated the assets and liabilities of certain CoreVest American Finance Lender ("CAFL") securitizations beginning in the fourth quarter of 2019, in connection with our acquisition of CoreVest. 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 and CAFL 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.
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, business purpose residential loans, interest-only (“IO”) and certain subordinate securities, MSRs, servicer advance investments, excess MSRs, and certain of our other investments. 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, Freddie Mac K-Series, and CAFL 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 and any accrued interest is reversed against interest income. 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-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, 2019 , our current intent is to hold these loans for longer-term investment while they are financed by the FHLBC. 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 and any accrued interest is reversed against interest income. 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. 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 based on amounts expected to be paid to the securities issued by these entities. 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 - Held-for-Sale at Fair Value We originate business purpose residential loans, including single-family rental loans through our business purpose lending platform. Single-family rental loans are mortgage loans secured by 1-4 unit residential real estate that the borrower owns as an investment property and rents to residential tenants. We classify single-family rental loans as held-for-sale at fair value when we originate these loans with the intent to transfer to securitization 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 and any accrued interest is reversed against interest income. 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. Business Purpose Residential Loans - Held-for-Investment at Fair Value We also originate residential bridge loans through our business purpose lending platform. Residential bridge loans are mortgage loans generally secured by unoccupied residential real estate that the borrower owns as an investment and that is being renovated, rehabilitated or constructed. Residential bridge loans are classified as held-for-investment at fair value if we intend to hold these loans to maturity. Certain single-family rental loans that were originated with the intent to sell as part of our business purpose 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, 2019 , our current intent is to hold these loans for longer-term investment while they are financed by the FHLBC. 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 and any accrued interest is reversed against interest income. 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. In addition, we record residential loans held at consolidated CAFL 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 based on amounts expected to be paid to the securities issued by these entities. Changes in fair value for these loans are recurring and reported through our consolidated statements of income in Investment fair value changes, net. 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 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 based on amounts expected to be paid to the securities issued by these entities. 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 and business purpose 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 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 mortgage-backed securities (“MBS”) collateralized by residential and multifamily mortgage loans. We classify our real estate securities as trading or available-for-sale 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	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. 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. See Note 10 for further discussion on excess MSRs. Investment in Multifamily Loan Fund In January 2019, we invested in a limited partnership created to acquire floating rate, light-renovation multifamily loans from Freddie Mac. We account for our ownership interest in this partnership 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 assess our investment for impairment whenever events or changes in circumstances indicate that the carrying amount of our investment might not be recoverable. We have elected to record our share of earnings or losses from this investment on a one-quarter lag, as a component of Other income on our consolidated statements of income. Shared Home Appreciation Options During 2019, we invested in shared home appreciation options that allow us to share in both home price appreciation and depreciation. We have elected to record these investments at fair value and report changes in fair value through Investment fair value changes, net on our consolidated statements of income. See Note 10 for further discussion on shared home appreciation options. Investment in 5 Arches During 2018, we acquired a 20%
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 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
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 cash collateral for certain consolidated securitization entities.
Goodwill and Intangible Assets	Significant judgment is required to estimate the fair value of intangible assets and in assigning their estimated useful lives. Accordingly, we typically seek the assistance of independent third-party valuation specialists for significant intangible assets. The fair value estimates are based on available historical information and on future expectations and assumptions we deem reasonable. We generally use an income-based valuation method to estimate the fair value of intangible assets, which discounts expected future cash flows to present value using estimates and assumptions we deem reasonable. Determining the estimated useful lives of intangible assets also requires judgment. Our assessment as to which intangible assets are deemed to have finite or indefinite lives is based on several factors including economic barriers of entry for the acquired business, retention trends, and our operating plans, among other factors. Finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis and reviewed for impairment if indicators are present. Additionally, useful lives are evaluated each reporting period to determine if revisions to the remaining periods of amortization are warranted.
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”), interest rate lock commitments ("IRLCs"), 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 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, IRLCs, 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. Interest Rate Futures Interest rate futures are futures contracts based on U.S. Treasury notes, U.S. dollar-denominated interest rate swaps, or U.S. dollar-denominated interest rate indices. 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. Interest Rate Lock Commitments IRLCs are agreements we have made with third-party borrowers for single-family rental loans that will be originated and held for sale. IRLCs qualify as derivatives under GAAP and are recorded at their estimated fair values on our consolidated balance sheets. 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. We may also record deferred tax assets/liabilities resulting from GAAP and tax basis differences of assets and liabilities acquired in a business combination at our taxable subsidiaries. These deferred tax assets/liabilities generally do not affect our GAAP income at the time of establishment as the offsetting accounting entry is recorded in GAAP goodwill. They also do not generally affect GAAP income when they are subsequently realized as the deferred tax provision or benefit resulting from the realization is offset by a corresponding current tax benefit or provision. 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, right-of-use asset, fixed assets and leasehold improvements, and REO. Other liabilities primarily consists of accrued compensation, payable to minority partner, guarantee obligations, lease liability, 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 in our consolidated statements of income. Margin Receivable and Payable Margin receivable and payable result from margin calls between us and our derivatives, master repurchase agreements, and warehouse facilities counterparties, whereby we or the counterparty were required to post collateral. Agency Risk-Sharing - Other Assets and Liabilities During 2014 and 2015, we entered into various risk-sharing arrangements with Fannie Mae and Freddie Mac. Under these arrangements, we committed to assume the first 1.00% or 2.25% (depending on the arrangement) of losses realized on reference pools of conforming residential mortgage loans that we acquired and then sold to the Agencies. As part of these risk-sharing arrangements, during the 10 -year term of our first Fannie Mae arrangement, we receive monthly cash payments from Fannie Mae based on the monthly outstanding unpaid principal balance of the reference pool of loans, and for our Freddie Mac and our subsequent Fannie Mae arrangements, the Agencies charged us a reduced guarantee fee for the reference loans we delivered to them in exchange for mortgage-backed securities, which we then sold. Under these arrangements we are required to pledge assets to the Agencies to collateralize our risk-sharing commitments to them throughout the terms of the arrangements. These pledged assets are held by a third-party custodian for the benefit of the Agencies. To the extent approved losses are incurred, the custodian will transfer collateral to the Agencies. As a result of these transactions, we recorded “pledged collateral” in the other assets line item, and “guarantee obligations” in the other liabilities line item, on our consolidated balance sheets. In addition, for the first Fannie Mae transaction, we recorded a “guarantee asset” in the other assets line item on our consolidated balance sheets. The guarantee obligations represent our commitments to assume losses under these arrangements. We amortize the guarantee obligations over the 10 -year terms of the arrangements based primarily on changes in the outstanding unpaid principal balance of loans in the reference pools, with a portion of the liabilities treated as a credit reserve that is not amortized into income. In addition, each period we assess the need for a separate loss allowance related to these arrangements, based on our estimate of credit losses inherent in the reference pools of loans. Income from cash payments received under the first Fannie Mae risk-sharing arrangement and income related to the amortization of the guarantee obligations of all three arrangements are recorded in Other income, and market valuation changes of the guarantee asset are recorded in Investment fair value changes, net on our consolidated statements of income. Our consolidated balance sheets include assets of the special purpose entities ("SPEs") associated with these risk-sharing arrangements (i.e., the "pledged collateral" referred to above) that can only be used to settle obligations of these SPEs and liabilities of these SPEs for which the creditors of these SPEs (the Agencies) do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2019 and December 31, 2018 , assets of such SPEs totaled $48 million and $47 million , respectively, and liabilities of such SPEs totaled $14 million and $17 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.
Business Combinations and Contingent Consideration	We use the acquisition method of accounting for business combinations, under which the purchase price is allocated to the fair values of the assets acquired and liabilities assumed at the acquisition date. The excess of the purchase price over the amount allocated to the assets acquired and liabilities assumed is recorded as goodwill. Acquisition-related costs are expensed as incurred. In relation to our acquisition of 5 Arches, we recorded contingent consideration liabilities that represent the estimated fair value (at the date of acquisition) of our obligation to make certain earn-out payments that are contingent on 5 Arches loan origination volumes exceeding certain specified thresholds. These liabilities are carried at fair value and periodic changes in their estimated fair value are recorded through Other expenses on our consolidated statements of income. The estimate of the fair value of contingent consideration requires significant judgment regarding assumptions about future operating results, discount rates, and probabilities of projected operating result scenarios.
Leases	Upon adoption of ASU 2016-02, "Leases," in the first quarter of 2019, we recorded a lease liability and right-of-use asset on our consolidated balance sheets. The lease liability is equal to the present value of our remaining lease payments discounted at our incremental borrowing rate and the right-of-use asset is equal to the lease liability adjusted for our deferred rent liability at the adoption of this accounting standard. As lease payments are made, the lease liability is reduced to the present value of the remaining lease payments and the right-of-use asset is reduced by the difference between the lease expense (straight-lined over the lease term) and the theoretical interest expense amount (calculated using the incremental borrowing rate). See Note 16 for further discussion on leases.
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. Short-term debt also includes non-recourse short-term borrowings used to finance servicer advance investments.
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, Freddie Mac SLST, and CAFL 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, single-family rental 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. Subordinate securities financing facility Borrowings under our subordinate securities financing facility are secured by real estate securities and carried at unpaid principal balance net of any unamortized deferred issuance costs. Interest on this facility is paid monthly. See Note 15 for further discussion on our subordinate securities financing facility. 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, restricted stock units, and restricted stock awards 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, 2019 , 2018 , and 2017 were $0.7 million , $0.6 million , and $0.5 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 general and administrative expenses, respectively, in our consolidated statements of income.
Recent Accounting Pronouncements	Newly Adopted Accounting Standards Updates ("ASUs") In July 2019, the FASB issued ASU 2019-07, "Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates (SEC Update)." This new guidance amends certain SEC paragraphs in the FASB Accounting Standards Codification pursuant to the issuance of various SEC Final Rule Releases, and is effective immediately. We adopted this guidance, as required, in the third quarter of 2019, which did not 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 adopted this guidance, as required, which did not 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 ("AOCI") 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. However, we did not elect to reclassify any income tax effects of the Tax Act from AOCI to retained earnings as we did not have any tax effects related to the Tax Act remaining in AOCI at December 31, 2018. Our policy is to release any stranded income tax effects from AOCI to income tax expense on an investment-by-investment basis. 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. 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 adopted this guidance, as required, in the first quarter of 2019, which did not 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. We adopted this guidance, as required, in the first quarter of 2019, which did not 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. We adopted this guidance, as required, in the first quarter of 2019, which did not have a material impact 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. 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. In March 2019, the FASB issued ASU 2019-01, "Leases (Topic 842): Codification Improvements," which is intended to clarify Codification guidance. We adopted this guidance, as required, in the first quarter of 2019, which did not have a material impact on our consolidated financial statements. We elected the package of practical expedients under the transition guidance within this standard, which allowed us to carry forward the classifications of each of our existing leases as operating leases. In connection with the adoption of this guidance, at December 31, 2019 , our lease liability was $13 million , which represented the present value of our remaining lease payments discounted at our incremental borrowing rate and was recorded in Accrued expenses and other liabilities on our consolidated balance sheets. At December 31, 2019 , our right-of-use asset was $12 million , which was equal to the lease liability adjusted for our deferred rent liability at adoption and was recorded in Other assets on our consolidated balance sheets. We will continue to record lease expense on a straight-line basis and have included required lease disclosures within Note 16. Other Recent Accounting Pronouncements In January 2020, the FASB issued ASU 2020-01, "Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)." This new guidance clarifies the interaction of the accounting for equity securities, equity method investments, and certain forward contracts and purchased options. This new guidance is effective for fiscal years beginning after December 15, 2020. 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 the consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." This new guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and by clarifying and amending existing guidance. This new guidance is effective for fiscal years beginning after December 15, 2020. 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 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 January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." This new guidance simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. This new guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim and annual goodwill impairment tests performed on testing dates after January 1, 2017. We plan to adopt this new guidance by the required date and do not anticipate that this update will have a material impact on our consolidated financial statements. In 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. In April 2019, the FASB issued ASU 2019-04, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments," which is intended to clarify this guidance. In May 2019, the FASB issued ASU 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief," which provides an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost. In November 2019, the FASB issued ASU 2019-11, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses," which is intended to clarify Codification guidance. In February 2020, the FASB issued ASU 2020-02, "Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) (SEC Update)," which amends certain sections of the guidance. 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 do not anticipate that these updates will have a material impact on our consolidated financial statements as nearly all of our financial instruments are carried at fair value and changes in fair values of these instruments are recorded on our consolidated statements of income in the period in which the valuation change occurs. We will continue evaluating these new standards and caution that any changes in our business or additional amendments to these standards could change our initial assessment.
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.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Schedule of Assets Acquired and Liabilities Assumed	Through December 31, 2019 , there were no significant changes to our purchase price allocations, which are summarized in the following table. Table 2.1 – Purchase Price Allocations (In Thousands) 5 Arches CoreVest Acquisition Date March 1, 2019 October 15, 2019 Purchase price: Cash $ 12,575 $ 482,311 Contingent consideration, at fair value 24,621 — Purchase option, at fair value 5,082 — Equity method investment, at fair value 8,052 — Total consideration $ 50,330 $ 482,311 Allocated to: Business purpose residential loans, at fair value $ 2,022 $ 2,610,490 Cash and cash equivalents 2,128 30,685 Restricted cash 9,082 — Other assets 5,473 67,420 Goodwill 28,747 59,928 Intangible assets 24,800 56,500 Deferred tax asset — 2,577 Total assets acquired 72,252 2,827,600 Asset-backed securities issued, at fair value — 1,656,023 Short-term debt, net 3,800 663,275 Accrued expenses and other liabilities 13,920 25,991 Deferred tax liability 4,202 — Total liabilities assumed 21,922 2,345,289 Total net assets acquired $ 50,330 $ 482,311
Schedule of Finite-Lived Intangible Assets	The amortization period for each of these assets and the activity for the year ended December 31, 2019 is summarized in the table below. Table 2.2 – Intangible Assets – Activity Carrying Value at December 31, 2018 Additions Amortization Expense Carrying Value at December 31, 2019 Weighted Average Amortization Period (in years) (Dollars in Thousands) 5 Arches Broker network $ — $ 18,100 $ (3,017 ) $ 15,083 5 Non-compete agreements — 2,900 (806 ) 2,094 3 Loan administration fees on existing loan assets — 2,600 (2,167 ) 433 1 Tradename — 1,200 (333 ) 867 3 Total 5 Arches — 24,800 (6,323 ) 18,477 5 CoreVest Borrower network — 45,300 (1,348 ) 43,952 7 Non-compete agreements — 6,600 (458 ) 6,142 3 Tradename — 2,800 (194 ) 2,606 3 Developed technology — 1,800 (188 ) 1,612 2 Total CoreVest — 56,500 (2,188 ) 54,312 6 Total $ — $ 81,300 $ (8,511 ) $ 72,789 6
Finite-lived Intangible Assets Amortization Expense	Estimated future amortization expense is summarized in the table below. Table 2.3 – Intangible Asset Amortization Expense by Year December 31, 2019 (In Thousands) 5 Arches CoreVest Total 2020 $ 5,420 $ 10,505 $ 15,925 2021 4,987 10,317 15,304 2022 3,848 8,952 12,800 2023 3,620 6,471 10,091 2024 602 6,471 7,073 2025 and thereafter — 11,596 11,596 Total Future Intangible Asset Amortization $ 18,477 $ 54,312 $ 72,789
Schedule of Goodwill	The following table presents the goodwill activity for the year ended December 31, 2019 . Table 2.4 – Goodwill – Activity Year Ended December 31, 2019 (In Thousands) 5 Arches CoreVest Total Beginning balance $ — $ — $ — Goodwill recognized from acquisition 28,747 59,928 88,675 Impairment — — — Ending Balance $ 28,747 $ 59,928 $ 88,675
Pro Forma Information	The following unaudited pro forma financial information presents Net interest income, Non-interest income, and Net income of Redwood, 5 Arches, and CoreVest combined, as if the acquisitions occurred as of January 1, 2018. These pro forma amounts have been adjusted to include the amortization of intangible assets and acquisition-related compensation expense for both periods, and to exclude the income statement impacts related to our equity method investment in 5 Arches. The unaudited pro forma financial information is not intended to represent or be indicative of the consolidated financial results of operations that would have been reported if the acquisition had been completed as of January 1, 2018 and should not be taken as indicative of our future consolidated results of operations. During the period from March 1, 2019 to December 31, 2019 , 5 Arches had net interest income of less than $0.1 million , non-interest income of $19 million , and net income of $3 million . In addition, 5 Arches had intangible asset amortization expense of $6 million for this period. During the period from October 15, 2019 to December 31, 2019, CoreVest had net interest income of $11 million , non-interest income of $19 million , and net income of $22 million . In addition, CoreVest had intangible asset amortization expense of $2 million for this period. Table 2.5 – Unaudited Pro Forma Financial Information Years Ended December 31, (In Thousands) 2019 2018 Supplementary pro forma information: Net interest income $ 167,680 $ 165,849 Non-interest income 193,519 103,179 Net income 185,896 118,125

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2019
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, 2019 and December 31, 2018 . 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, 2019 Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 19,020 $ — $ 19,020 $ (14,178 ) $ (915 ) $ 3,927 TBAs 5,755 — 5,755 (5,755 ) — — Interest rate futures 137 — 137 — — 137 Total Assets $ 24,912 $ — $ 24,912 $ (19,933 ) $ (915 ) $ 4,064 Liabilities (2) Interest rate agreements $ (148,765 ) $ — $ (148,765 ) $ 14,178 $ 134,587 $ — TBAs (13,359 ) — (13,359 ) 5,755 6,673 (931 ) Loan warehouse debt (432,126 ) — (432,126 ) 432,126 — — Security repurchase agreements (1,096,578 ) — (1,096,578 ) 1,096,578 — — Total Liabilities $ (1,690,828 ) $ — $ (1,690,828 ) $ 1,548,637 $ 141,260 $ (931 ) 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 ) (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 and TBAs 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, 2019
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, 2019 Legacy Sequoia Sequoia Choice Freddie Mac SLST Freddie Mac K-Series CAFL Servicing Investment Total Consolidated VIEs (Dollars in Thousands) Residential loans, held-for-investment $ 407,890 $ 2,291,463 $ 2,367,215 $ — $ — $ — $ 5,066,568 Business purpose residential loans, held-for-investment — — — — 2,192,552 — 2,192,552 Multifamily loans, held-for-investment — — — 4,408,524 — — 4,408,524 Other investments — — — — — 184,802 184,802 Cash and cash equivalents — — — — — 9,015 9,015 Restricted cash 143 27 — — — 21,766 21,936 Accrued interest receivable 655 9,824 7,313 13,539 9,572 4,869 45,772 Other assets 460 — 445 — 1,795 — 2,700 Total Assets $ 409,148 $ 2,301,314 $ 2,374,973 $ 4,422,063 $ 2,203,919 $ 220,452 $ 11,931,869 Short-term debt $ — $ — $ — $ — $ — $ 152,554 $ 152,554 Accrued interest payable 395 7,732 5,374 12,887 7,485 187 34,060 Accrued expenses and other liabilities — 27 — — — 14,956 14,983 Asset-backed securities issued 402,465 2,037,198 1,918,322 4,156,239 2,001,251 — 10,515,475 Total Liabilities $ 402,860 $ 2,044,957 $ 1,923,696 $ 4,169,126 $ 2,008,736 $ 167,697 $ 10,717,072 Number of VIEs 20 9 2 5 10 3 49 December 31, 2018 Legacy Sequoia Sequoia Choice Freddie Mac SLST Freddie Mac K-Series CAFL 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 Other assets 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
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, 2019 and 2018 . Table 4.2 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Years Ended December 31, (In Thousands) 2019 2018 Principal balance of loans transferred $ 1,872,910 $ 3,188,358 Trading securities retained, at fair value 8,882 52,859 AFS securities retained, at fair value 4,847 7,739
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, 2019 and 2018 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) 2019 2018 Proceeds from new transfers $ 1,912,334 $ 3,175,900 MSR fees received 11,857 13,417 Funding of compensating interest, net (368 ) (122 ) Cash flows received on retained securities 27,045 28,614
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 2019 and 2018 . Table 4.4 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Year Ended December 31, 2019 Year Ended December 31, 2018 At Date of Securitization Senior IO Securities Subordinate Securities Senior IO Securities Subordinate Securities Prepayment rates 25 % 15 % 9 % 10 % Discount rates 14 % 7 % 14 % 5 % Credit loss assumptions 0.20 % 0.20 % 0.20 % 0.20 %
Unconsolidated Variable Interest Entity's Sponsored by Redwood Summary	The following table presents additional information at December 31, 2019 and December 31, 2018 , 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, 2019 December 31, 2018 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 88,425 $ 129,111 Subordinate securities, classified as AFS 140,649 162,314 Mortgage servicing rights 40,254 58,572 Maximum loss exposure (1) $ 269,328 $ 349,997 Assets transferred: Principal balance of loans outstanding $ 10,299,442 $ 10,580,216 Principal balance of loans 30+ days delinquent 41,809 21,805 (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, 2019 and December 31, 2018 . Table 4.6 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood December 31, 2019 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2019 $ 40,254 $ 48,765 $ 180,309 Expected life (in years) (2) 6 6 14 Prepayment speed assumption (annual CPR) (2) 11 % 14 % 16 % Decrease in fair value from: 10% adverse change $ 1,643 $ 1,908 $ 205 25% adverse change 3,913 5,086 1,434 Discount rate assumption (2) 11 % 12 % 5 % Decrease in fair value from: 100 basis point increase $ 1,447 $ 1,079 $ 18,127 200 basis point increase 2,795 2,482 33,630 Credit loss assumption (2) N/A 0.21 % 0.21 % Decrease in fair value from: 10% higher losses N/A $ — $ 1,804 25% higher losses N/A — 4,520 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 (1) Senior securities included $49 million and $61 million of interest-only securities at December 31, 2019 and December 31, 2018 , 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, 2019 , grouped by asset type. Table 4.7 – Third-Party Sponsored VIE Summary (In Thousands) December 31, 2019 Mortgage-Backed Securities Senior $ 127,094 Mezzanine 508,195 Subordinate 235,510 Total Mortgage-Backed Securities 870,799 Excess MSR 16,216 Total Investments in Third-Party Sponsored VIEs $ 887,015

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2019
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, 2019 and December 31, 2018 . Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value (In Thousands) Assets Residential loans, held-for-sale at fair value $ 536,385 $ 536,509 $ 1,048,801 $ 1,048,821 Residential loans, held-for-investment 7,178,465 7,178,465 6,205,941 6,205,941 Business purpose residential loans, held-for-sale 331,565 331,565 28,460 28,460 Business purpose residential loans, held-for-investment 3,175,178 3,175,178 112,798 112,798 Multifamily loans 4,408,524 4,408,524 2,144,598 2,144,598 Trading securities 860,540 860,540 1,118,612 1,118,612 Available-for-sale securities 239,334 239,334 333,882 333,882 Servicer advance investments (1) 169,204 169,204 300,468 300,468 MSRs (1) 42,224 42,224 60,281 60,281 Participation in loan warehouse facility (1) — — 39,703 39,703 Excess MSRs (1) 31,814 31,814 27,312 27,312 Shared home appreciation options (1) 45,085 45,085 — — Cash and cash equivalents 196,966 196,966 175,764 175,764 Restricted cash 93,867 93,867 29,313 29,313 Accrued interest receivable 71,058 71,058 47,105 47,105 Derivative assets 35,701 35,701 35,789 35,789 REO (2) 9,462 10,389 3,943 4,396 Margin receivable (2) 209,776 209,776 100,773 100,773 FHLBC stock (2) 43,393 43,393 43,393 43,393 Guarantee asset (2) 1,686 1,686 2,618 2,618 Pledged collateral (2) 32,945 32,945 42,433 42,433 Liabilities Short-term debt facilities $ 2,176,591 $ 2,176,591 $ 1,937,920 $ 1,937,920 Short-term debt - servicer advance financing 152,554 152,554 262,740 262,740 Accrued interest payable 60,655 60,655 42,528 42,528 Margin payable (3) 1,700 1,700 835 835 Guarantee obligation (3) 14,009 13,754 16,711 16,774 Contingent consideration (3) 28,484 28,484 — — Derivative liabilities 163,424 163,424 84,855 84,855 ABS issued at fair value 10,515,475 10,515,475 5,410,073 5,410,073 FHLBC long-term borrowings 1,999,999 1,999,999 1,999,999 1,999,999 Subordinate securities financing facility 183,520 184,666 — — Convertible notes, net 631,125 661,985 633,196 618,271 Trust preferred securities and subordinated notes, net 138,628 99,045 138,582 102,533 (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, 2019 and December 31, 2018 , 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, 2019 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 7,714,745 $ — $ — $ 7,714,745 Business purpose residential loans 3,506,743 — — 3,506,743 Multifamily loans 4,408,524 — — 4,408,524 Trading securities 860,540 — — 860,540 Available-for-sale securities 239,334 — — 239,334 Servicer advance investments 169,204 — — 169,204 MSRs 42,224 — — 42,224 Excess MSRs 31,814 — — 31,814 Shared home appreciation options 45,085 — — 45,085 Derivative assets 35,701 6,531 19,020 10,150 Pledged collateral 32,945 32,945 — — FHLBC stock 43,393 — 43,393 — Guarantee asset 1,686 — — 1,686 Liabilities Contingent consideration $ 28,484 $ — $ — $ 28,484 Derivative liabilities 163,424 13,368 148,766 1,290 ABS issued 10,515,475 — — 10,515,475 December 31, 2018 Carrying 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
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, 2019 and December 31, 2018 . 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 Shared Home Appreciation Options (In Thousands) Beginning balance - December 31, 2018 $ 7,254,631 $ 141,258 $ 2,144,598 $ 1,118,612 $ 333,882 $ 300,468 $ 60,281 $ 27,312 $ — Acquisitions 7,092,866 2,639,615 2,162,386 332,593 26,539 69,610 868 7,762 44,243 Originations — 1,015,436 — — — — — — — Sales (5,141,886 ) (76,909 ) — (597,122 ) (110,069 ) — — — — Principal paydowns (1,609,220 ) (213,655 ) (28,543 ) (44,600 ) (39,704 ) (203,876 ) — — — Gains (losses) in net income, net 119,132 7,423 130,083 56,008 24,580 3,002 (18,925 ) (3,260 ) 842 Unrealized losses in OCI, net — — — — 4,106 — — — — Other settlements, net (1) (778 ) (6,425 ) — (4,951 ) — — — — — Ending balance - December 31, 2019 $ 7,714,745 $ 3,506,743 $ 4,408,524 $ 860,540 $ 239,334 $ 169,204 $ 42,224 $ 31,814 $ 45,085 Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (continued) Assets Liabilities Guarantee Asset Derivatives (2) Contingent Consideration ABS Issued (In Thousands) Beginning balance - December 31, 2018 $ 2,618 $ 2,181 $ — $ 5,410,073 Acquisitions — — 25,267 6,098,462 Principal paydowns — — — (1,112,437 ) Gains (losses) in net income, net (932 ) 62,220 3,217 119,377 Other settlements, net (1) — (55,541 ) — — Ending balance - December 31, 2019 $ 1,686 $ 8,860 $ 28,484 $ 10,515,475 Assets (In Thousands) Residential Loans Business Purpose Residential Loans Multifamily Loans Trading Securities AFS Securities Servicer Advance Investments MSRs Excess MSRs Guarantee Asset 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 gains in OCI, net — — — — (34,484 ) — — — — Other settlements, net (1) (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 Liabilities (In Thousands) Derivatives (2) ABS Issued 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 (1) 1,681 — Ending balance - December 31, 2018 $ 2,181 $ 5,410,073 (1) Other settlements, net for residential and business purpose 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 or interest rate lock commitments at the time loans are acquired to the basis of residential and single-family rental loans. Other settlements, net for trading securities relates to the consolidation of Freddie Mac K-Series securitization entities. (2) For the purpose of this presentation, derivative assets and liabilities, which consist of loan purchase commitments, forward sale commitments, and interest rate lock commitments, are presented on a net basis.
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, 2019 , 2018 , and 2017 . Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the years ended December 31, 2019 , 2018 , and 2017 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, 2019 , 2018 , and 2017 Included in Net Income Included in Net Income Years Ended December 31, (In Thousands) 2019 2018 2017 Assets Residential loans at Redwood $ 67,470 $ (17,757 ) $ 523 Residential loans at consolidated Sequoia entities (10,062 ) 24,799 17,727 Residential loans at consolidated Freddie Mac SLST entities 63,583 21,295 — Business purpose residential loans 14,603 445 — Single-family rental loans at consolidated CAFL entities (14,681 ) — — Multifamily loans at consolidated Freddie Mac K-Series entities 130,083 46,555 — Trading securities 18,865 (12,256 ) 28,612 Available-for-sale securities — (89 ) (1,011 ) Servicer advance investments 3,001 (702 ) — MSRs (11,957 ) 1,942 1,277 Excess MSRs (3,260 ) 1,824 — Shared home appreciation options 842 — — Loan purchase and interest rate lock commitments 10,190 2,913 3,243 Loan forward sale commitments — — 2,177 Other assets - Guarantee asset (932 ) (251 ) (1,223 ) Liabilities Loan purchase commitments $ (1,290 ) $ (732 ) $ (3,706 ) Contingent consideration (3,217 ) — — ABS issued (130,421 ) (71,468 ) (29,187 )
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, 2019 and December 31, 2018 . 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, 2019 and December 31, 2018 . Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Gain (Loss) for Year Ended December 31, 2019 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2019 Assets REO $ 4,051 $ — $ — $ 4,051 $ (1,363 ) Gain (Loss) for Year Ended December 31, 2018 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2018 Assets REO $ 2,225 $ — $ — $ 2,225 $ (131 )
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, 2019 , 2018 , and 2017 . Table 5.6 – Market Valuation Gains and Losses, Net Years Ended December 31, (In Thousands) 2019 2018 2017 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ 3,267 $ 23,144 $ 31,493 Residential loan purchase and forward sale commitments 60,260 (1,336 ) 37,880 Single-family rental loans held-for-sale, at fair value 15,043 375 — Single-family rental loan purchase and interest rate lock commitments 1,961 78 — Residential bridge loans 4,518 — — Risk management derivatives, net (15,723 ) 34,739 (17,529 ) Total mortgage banking activities, net (1) $ 69,326 $ 57,000 $ 51,844 Investment Fair Value Changes, Net Residential loans held-for-investment at Redwood $ 58,891 $ (29,573 ) $ (5,765 ) Single-family rental loans held-for-investment 272 — — Residential bridge loans held-for-investment (2,139 ) (29 ) — Trading securities 56,046 (8,055 ) 39,526 Commercial loans held-for-sale — — 300 Servicer advance investments 3,001 (701 ) — Excess MSRs (3,260 ) 1,823 — Shared home appreciation options 842 — — REO (1,045 ) — — Net investments in Legacy Sequoia entities (2) (1,545 ) (1,016 ) (8,027 ) Net investments in Sequoia Choice entities (2) 6,947 443 (323 ) Net investments in Freddie Mac SLST entities (2) 27,206 1,271 — Net investments in Freddie Mac K-Series entities (2) 21,430 931 — Net investments in CAFL entities (2) (3,636 ) — — Other investments (341 ) (434 ) (1,484 ) Risk management derivatives, net (127,169 ) 9,740 (12,842 ) Impairments on AFS securities — (89 ) (1,011 ) Total investment fair value changes, net $ 35,500 $ (25,689 ) $ 10,374 Other Income MSRs $ (18,856 ) $ (2,508 ) $ (10,166 ) Risk management derivatives, net 8,595 (4,734 ) (568 ) Gain on re-measurement of 5 Arches investment 2,441 — — Total other income (3) $ (7,820 ) $ (7,242 ) $ (10,734 ) Total Market Valuation Gains, Net $ 97,006 $ 24,069 $ 51,484 (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 investments at the consolidated VIEs. (3) Other income 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, 2019 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 $ 2,113,977 Prepayment rate (annual CPR) 20 - 20 % 20 % Whole loan spread to TBA price $ 0.53 - $ 1.63 $ 1.62 Whole loan spread to swap rate 95 - 375 bps 170 bps Jumbo hybrid loans 326,336 Prepayment rate (annual CPR) 15 - 15 % 15 % Whole loan spread to swap rate 80 - 345 bps 134 bps Jumbo loans committed to sell 207,864 Whole loan committed sales price $ 101.85 - $ 102.96 $ 102.41 Loans held by Legacy Sequoia (1) 407,890 Liability price N/A N/A Loans held by Sequoia Choice (1) 2,291,463 Liability price N/A N/A Loans held by Freddie Mac SLST (1) 2,367,215 Liability price N/A N/A Business purpose residential loans: Single-family rental loans 569,185 Senior credit spread 100 - 105 bps 103 bps Subordinate credit spread 135 - 1,400 bps 299 bps Senior credit support 33 - 40 % 34 % IO discount rate 6 - 9 % 8 % Prepayment rate (annual CPR) 5 - 5 % 5 % Single-family rental loans held by CAFL 2,192,552 Liability price N/A N/A Residential bridge loans 745,006 Discount rate 6 10 % 7 % Multifamily loans held by Freddie Mac K-Series (1) 4,408,524 Liability price N/A N/A Trading and AFS securities 1,099,874 Discount rate 3 - 40 % 5 % Prepayment rate (annual CPR) 5 - 50 % 16 % Default rate — - 7 % 1 % Loss severity — - 30 % 5 % Servicer advance investments 169,204 Discount rate 5 - 5 % 5 % Prepayment rate (annual CPR) 8 - 15 % 14 % Expected remaining life (2) 2 - 2 year 2 year Mortgage servicing income 8 - 13 bps 10 bps MSRs 42,224 Discount rate 11 - 12 % 11 % Prepayment rate (annual CPR) 5 - 44 % 11 % Per loan annual cost to service $ 82 - $ 82 $ 82 Excess MSRs 31,814 Discount rate 11 - 16 % 14 % Prepayment rate (annual CPR) 9 - 14 % 11 % Excess mortgage servicing amount 8 - 18 bps 13 bps Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments (continued) December 31, 2019 Fair Value Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average Assets (continued) Shared home appreciation options $ 45,085 Discount rate 11 - 11 % 11 % Prepayment rate (annual CPR) 10 - 30 % 23 % Home price appreciation 3 - 3 % 3 % Guarantee asset 1,686 Discount rate 11 - 11 % 11 % Prepayment rate (annual CPR) 15 - 15 % 15 % REO 4,051 Loss severity 17 - 55 % 26 % Residential loan purchase commitments, net 8,419 MSR multiple 0.7 - 4.3 x 2.8 x Pull-through rate 8 - 100 % 75 % Whole loan spread to TBA price $ 0.53 - $ 1.63 $ 1.62 Whole loan spread to swap rate - fixed rate 115 - 375 bps 253 bps Prepayment rate (annual CPR) 15 - 20 % 20 % Whole loan spread to swap rate - hybrid 115 - 155 bps 131 bps Single-family rental interest rate lock commitments 440 Senior credit spread 105 - 105 bps 105 bps Subordinate credit spread 140 - 1,400 bps 299 bps Senior credit support 33 - 33 % 33 % IO discount rate 6 - 7 % 7 % Prepayment rate (annual CPR) 5 - 5 % 5 % Pull-through rate 100 - 100 % 100 % Liabilities ABS issued (1) At consolidated Sequoia entities 2,439,663 Discount rate 3 - 30 % 4 % Prepayment rate (annual CPR) 17 - 43 % 26 % Default rate — - 7 % — % Loss severity — - 65 % 1 % At consolidated Freddie Mac SLST entities 1,918,322 Discount rate 3 - 13 % 3 % Prepayment rate (annual CPR) 6 - 6 % 6 % Default rate 17 - 18 % 17 % Loss severity 30 - 30 % 30 % At consolidated Freddie Mac K-Series entities (4) 4,156,239 Discount rate 1 - 9 % 3 % Non-IO prepayment rate (annual CPR) — - — % — % IO prepayment rate (annual CPY/CPP) — - 100 % 94 % At consolidated CAFL entities (4) 2,001,251 Discount rate 2 - 30 % 4 % Prepayment rate (annual CPR) — - 5 % — % Contingent consideration 28,484 Discount rate 23 - 23 % 23 % Probability of outcomes (3) 100 - 100 % 100 % Footnotes to Table 5.7 (1) The fair value of the loans held by consolidated entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable in accordance with accounting guidance for collateralized financing entities. At December 31, 2019 , the fair value of securities we owned at the consolidated Sequoia, Freddie Mac SLST, Freddie Mac K-Series and CAFL entities was $264 million , $449 million , $252 million , and $191 million , respectively. (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). (3) Represents the probability of a full payout of contingent purchase consideration. (4)

Residential Loans (Tables)

Residential Loans (Tables)	12 Months Ended
	Dec. 31, 2019
Receivables [Abstract]
Summary of Classifications and Carrying Value of Loans	The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at December 31, 2019 and December 31, 2018 . Table 6.1 – Classifications and Carrying Values of Residential Loans December 31, 2019 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia Choice SLST Total Held-for-sale at fair value $ 536,385 $ — $ — $ — $ 536,385 Held-for-investment at fair value 2,111,897 407,890 2,291,463 2,367,215 7,178,465 Total Residential Loans $ 2,648,282 $ 407,890 $ 2,291,463 $ 2,367,215 $ 7,714,850 December 31, 2018 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia Choice SLST Total Held-for-sale at fair value $ 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 The following table summarizes the classifications and carrying values of the business purpose residential loans owned at Redwood at December 31, 2019 and December 31, 2018. Table 7.1 – Classifications and Carrying Values of Business Purpose Residential Loans December 31, 2019 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 331,565 — $ — $ 331,565 Held-for-investment at fair value 237,620 2,192,552 745,006 3,175,178 Total Business Purpose Residential Loans $ 569,185 $ 2,192,552 $ 745,006 $ 3,506,743 December 31, 2018 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 28,460 $ — $ — $ 28,460 Held-for-investment at fair value — — 112,798 112,798 Total Business Purpose Residential Loans $ 28,460 $ — $ 112,798 $ 141,258
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, 2019 and December 31, 2018 . Table 6.2 – Geographic Concentration of Residential Loans December 31, 2019 Geographic Concentration Held-for-Sale Held-for- Held-for- Investment at Sequoia Choice Held-for-Investment at Freddie Mac SLST Held-for- California 36 % 18 % 35 % 14 % 45 % Washington 7 % 1 % 7 % 2 % 5 % Texas 6 % 6 % 9 % 3 % 8 % Colorado 6 % 3 % 4 % — % 4 % Florida 4 % 14 % 5 % 10 % 5 % New Jersey 2 % 4 % 2 % 7 % 2 % New York 1 % 10 % 4 % 10 % 4 % Other states (none greater than 5%) 38 % 44 % 34 % 54 % 27 % Total 100 % 100 % 100 % 100 % 100 % December 31, 2018 Geographic Concentration Held-for-Sale Held-for- Held-for- 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 % The following table presents the geographic concentration of business purpose residential loans recorded on our consolidated balance sheets at December 31, 2019 . Table 7.2 – Geographic Concentration of Business Purpose Residential Loans December 31, 2019 Geographic Concentration Single-Family Rental Held-for-Sale Single-Family Rental Held-for-Investment at Redwood Single-Family Rental Held-for-Investment at CAFL Residential Bridge Florida 5 % — % 8 % 9 % Texas 19 % 12 % 15 % 3 % New Jersey 12 % 5 % 11 % 8 % New York 5 % 1 % 1 % 6 % California 2 % 1 % 7 % 21 % Utah — % — % — % 5 % Georgia 8 % — % 5 % 7 % Alabama 5 % — % 4 % 4 % Arkansas 6 % — % 2 % — % Maryland 6 % — % 2 % — % Illinois 1 % — % 5 % 3 % Other states (none greater than 5%) 31 % 81 % 40 % 34 % Total 100 % 100 % 100 % 100 % December 31, 2018 Geographic Concentration Single-Family Rental Held-for-Sale Single-Family Rental Held-for-Investment at Redwood Single-Family Rental Held-for-Investment at CAFL Residential Bridge Florida 69 % — % — % 7 % Texas 14 % — % — % — % California — % — % — % 79 % Utah — % — % — % 5 % Other states (none greater than 5%) 17 % — % — % 9 % Total 100 % — % — % 100 % The following table presents the geographic concentration of multifamily loans recorded on our consolidated balance sheets at December 31, 2019 . Table 8.1 – Geographic Concentration of Multifamily Loans Geographic Concentration December 31, 2019 December 31, 2018 Texas 13 % 9 % California 11 % 11 % Florida 10 % — % Arizona 6 % 8 % Georgia 6 % 6 % Washington 5 % — % Colorado 5 % — % Other states (none greater than 5%) 44 % 66 % 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 residential loans recorded on our consolidated balance sheets at December 31, 2019 and December 31, 2018 . Table 6.3 – Product Types and Characteristics of Residential Loans December 31, 2019 (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 3.50 % to 4.50% 2043-09 - 2046-01 $ 2,423 $ — $ — $ 251 to $500 51 3.25 % to 5.63% 2041-01 - 2048-08 20,781 — — $ 501 to $750 97 2.88 % to 5.13% 2041-09 - 2048-08 61,708 1,364 — $ 751 to $1,000 90 2.88 % to 6.00% 2043-12 - 2048-08 77,550 1,784 971 over $1,000 49 3.00 % to 5.50% 2040-10 - 2048-09 64,937 1,428 — 299 227,399 4,576 971 Fixed loans $ — to $250 38 2.90 % to 4.80% 2026-02 - 2047-12 6,549 223 — $ 251 to $500 676 2.75 % to 6.00% 2026-01 - 2049-04 287,984 — — $ 501 to $750 1,091 2.80 % to 6.75% 2026-04 - 2049-05 669,159 2,325 614 $ 751 to $1,000 519 2.75 % to 6.63% 2026-01 - 2049-04 447,499 1,895 — over $1,000 317 3.00 % to 5.88% 2031-04 - 2049-05 414,188 3,202 — 2,641 1,825,379 7,645 614 Total HFI at Redwood: 2,940 $ 2,052,778 $ 12,221 $ 1,585 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,685 1.38 % to 6.00% 2020-01 - 2035-11 $ 169,230 $ 5,135 $ 3,109 $ 251 to $500 345 1.25 % to 5.63% 2022-01 - 2036-05 120,261 6,149 3,835 $ 501 to $750 87 1.63 % to 4.38% 2027-04 - 2035-02 53,811 3,628 1,211 $ 751 to $1,000 45 1.63 % to 4.38% 2027-11 - 2036-03 37,756 827 1,648 over $1,000 24 1.63 % to 4.00% 2027-12 - 2035-04 38,341 — — 2,186 419,399 15,739 9,803 Hybrid ARM loans: $ — to $250 2 4.25 % to 4.50% 2033-09 - 2033-10 465 — — $ 251 to $500 7 3.63 % to 5.13% 2033-07 - 2034-06 2,494 — — $ 501 to $750 2 4.50 % to 4.50% 2033-08 - 2033-08 1,181 — — over $1,000 1 4.50 % to 4.50% 2033-09 - 2033-09 1,291 — — 12 5,431 — — Total HFI at Legacy Sequoia: 2,198 $ 424,830 $ 15,739 $ 9,803 Held-for-Investment at Sequoia Choice: Fixed loans: $ — to $250 56 2.75 % to 5.50% 2038-02 - 2049-07 $ 10,743 $ — $ — $ 251 to $500 420 3.13 % to 6.13% 2037-12 - 2049-09 184,455 2,282 — $ 501 to $750 1,528 3.13 % to 6.75% 2037-02 - 2049-09 940,914 13,020 2,366 $ 751 to $1,000 835 3.25 % to 6.50% 2035-04 - 2049-09 719,609 7,856 3,297 over $1,000 317 3.50 % to 5.88% 2038-01 - 2049-09 384,959 1,108 1,093 Total HFI at Sequoia Choice: 3,156 $ 2,240,680 $ 24,266 $ 6,756 Table 6.3 – Product Types and Characteristics of Residential Loans (continued) December 31, 2019 (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 11,639 2.00 % to 11.00% 2019-11 - 2059-10 $ 1,501,538 $ 477,592 $ 79,632 $ 251 to $500 2,805 2.00 % to 7.75% 2033-08 - 2058-11 894,125 297,732 52,920 $ 501 to $750 57 2.00 % to 6.75% 2043-08 - 2058-07 31,350 8,787 2,623 over $1,000 1 4.00 % to 4.00% 2056-03 - 2056-03 1,021 1,021 — Total HFI at Freddie Mac SLST: 14,502 $ 2,428,034 $ 785,132 $ 135,175 Held-for-Sale: Hybrid ARM loans $ — to $250 7 5.20 % to 7.00% 2047-08 2048-12 $ 1,254 $ — $ — $ 251 to $500 1 4.25 % to 4.25% 2049-08 - 2049-08 432 — — $ 501 to $750 52 3.00 % to 5.50% 2047-04 - 2049-12 33,611 — — $ 751 to $1,000 33 3.25 % to 4.88% 2047-04 - 2049-11 28,573 — — over $1,000 22 3.25 % to 5.25% 2048-06 - 2049-11 28,013 — — 115 91,883 — — Fixed loans $ — to $250 2 3.88 % to 7.13% 2034-08 - 2049-07 481 — — $ 251 to $500 13 3.63 % to 6.50% 2048-01 - 2050-01 6,234 — — $ 501 to $750 301 3.20 % to 5.88% 2034-05 - 2050-01 186,251 — 747 $ 751 to $1,000 161 3.50 % to 6.50% 2034-07 - 2050-01 139,786 — — over $1,000 77 3.20 % to 5.00% 2034-08 - 2050-01 100,293 1,650 — 554 433,045 1,650 747 Total Held-for-Sale 669 $ 524,928 $ 1,650 $ 747 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 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 7,900 1,310,974 198,945 50,528 Held-for-Sale: 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 1,484 $ 1,034,284 $ 559 $ 747 (1) Rate is net of servicing fee for consolidated loans for which we do not own the MSR. 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, 2019 . Table 7.3 – Product Types and Characteristics of Business Purpose Residential Loans December 31, 2019 (In Thousands) Loan Balance Number of Loans Interest Rate Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Single-Family Rental Held-for-Investment at Redwood: Fixed loans: $ 251 to $500 20 4.88 % to 7.47% 2024-02 - 2030-01 $ 7,925 $ — $ — $ 501 to $750 26 4.45 % to 7.25% 2023-09 - 2030-01 15,620 — — $ 751 to $1,000 16 4.91 % to 6.58% 2023-11 - 2029-09 13,616 — — over $1,000 45 3.93 % to 6.94% 2023-10 - 2030-01 194,050 — — Total SFR HFI at Redwood: 107 $ 231,211 $ — $ — Single-Family Rental Held-for-Investment at CAFL: Fixed loans: $ — to $250 2 5.46 % to 5.80% 2019-11 - 2021-09 $ 398 $ — $ — $ 251 to $500 56 4.92 % to 7.05% 2020-03 - 2029-10 $ 25,643 $ 1,306 $ — $ 501 to $750 148 4.75 % to 7.31% 2020-03 - 2029-10 91,414 1,259 1,990 $ 751 to $1,000 98 4.62 % to 7.23% 2020-03 - 2029-10 85,472 1,639 879 over $1,000 479 4.31 % to 7.57% 2019-12 - 2029-11 1,875,287 18,567 26,170 Total SFR HFI at CAFL: 783 $ 2,078,214 $ 22,771 $ 29,039 Single-Family Rental Held-for-Sale: Fixed loans: $ — to $250 85 5.50 % to 7.63% 2027-03 - 2050-01 $ 10,506 $ — $ 130 $ 251 to $500 9 4.94 % to 6.00% 2024-11 - 2050-01 3,708 — — $ 501 to $750 21 4.55 % to 5.96% 2024-01 - 2030-01 13,335 — — $ 751 to $1,000 13 5.00 % to 5.93% 2024-01 - 2030-01 11,676 — — over $1,000 73 4.35 % to 6.28% 2024-01 - 2030-01 282,411 — 1,688 Total Single-Family Rental HFS: 201 $ 321,636 $ — $ 1,818 Residential Bridge: Fixed loans: $ — to $250 2,207 6.53 % to 12.00% 2019-07 - 2022-01 $ 197,449 $ 1,447 $ 369 $ 251 to $500 198 6.99 % to 13.00% 2019-10 - 2022-01 71,361 2,811 675 $ 501 to $750 71 6.99 % to 9.99% 2019-11 - 2021-10 42,862 2,072 508 $ 751 to $1,000 40 7.28 % to 10.00% 2018-10 - 2022-01 34,646 1,771 2,443 over $1,000 137 5.79 % to 10.25% 2019-11 - 2022-01 394,914 31,452 4,994 Total Residential Bridge: 2,653 $ 741,232 $ 39,553 $ 8,989 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 Held-for-Sale: 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 HFS: 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 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, 2019 . Table 8.2 – Product Types and Characteristics of Multifamily Loans December 31, 2019 (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 $10,000 114 3.29 % to 4.73% 2023-02 - 2029-10 $ 674,666 $ — $ — $ 10,001 to $20,000 102 3.54 % to 4.94% 2023-09 - 2029-08 1,489,118 — — $ 20,001 to $30,000 32 3.54 % to 4.69% 2024-01 - 2026-12 750,712 — — $ 30,001 to $40,000 19 3.52 % to 4.79% 2025-05 - 2029-10 654,729 — — over $40,000 12 3.55 % to 4.65% 2024-10 - 2026-09 625,775 — — Total: 279 $ 4,195,000 $ — $ — 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 $ — $ —

Business Purpose Residential _2

Business Purpose Residential Loans (Tables)	12 Months Ended
	Dec. 31, 2019
Receivables [Abstract]
Summary of Classifications and Carrying Value of Loans	The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at December 31, 2019 and December 31, 2018 . Table 6.1 – Classifications and Carrying Values of Residential Loans December 31, 2019 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia Choice SLST Total Held-for-sale at fair value $ 536,385 $ — $ — $ — $ 536,385 Held-for-investment at fair value 2,111,897 407,890 2,291,463 2,367,215 7,178,465 Total Residential Loans $ 2,648,282 $ 407,890 $ 2,291,463 $ 2,367,215 $ 7,714,850 December 31, 2018 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia Choice SLST Total Held-for-sale at fair value $ 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 The following table summarizes the classifications and carrying values of the business purpose residential loans owned at Redwood at December 31, 2019 and December 31, 2018. Table 7.1 – Classifications and Carrying Values of Business Purpose Residential Loans December 31, 2019 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 331,565 — $ — $ 331,565 Held-for-investment at fair value 237,620 2,192,552 745,006 3,175,178 Total Business Purpose Residential Loans $ 569,185 $ 2,192,552 $ 745,006 $ 3,506,743 December 31, 2018 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 28,460 $ — $ — $ 28,460 Held-for-investment at fair value — — 112,798 112,798 Total Business Purpose Residential Loans $ 28,460 $ — $ 112,798 $ 141,258
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, 2019 and December 31, 2018 . Table 6.2 – Geographic Concentration of Residential Loans December 31, 2019 Geographic Concentration Held-for-Sale Held-for- Held-for- Investment at Sequoia Choice Held-for-Investment at Freddie Mac SLST Held-for- California 36 % 18 % 35 % 14 % 45 % Washington 7 % 1 % 7 % 2 % 5 % Texas 6 % 6 % 9 % 3 % 8 % Colorado 6 % 3 % 4 % — % 4 % Florida 4 % 14 % 5 % 10 % 5 % New Jersey 2 % 4 % 2 % 7 % 2 % New York 1 % 10 % 4 % 10 % 4 % Other states (none greater than 5%) 38 % 44 % 34 % 54 % 27 % Total 100 % 100 % 100 % 100 % 100 % December 31, 2018 Geographic Concentration Held-for-Sale Held-for- Held-for- 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 % The following table presents the geographic concentration of business purpose residential loans recorded on our consolidated balance sheets at December 31, 2019 . Table 7.2 – Geographic Concentration of Business Purpose Residential Loans December 31, 2019 Geographic Concentration Single-Family Rental Held-for-Sale Single-Family Rental Held-for-Investment at Redwood Single-Family Rental Held-for-Investment at CAFL Residential Bridge Florida 5 % — % 8 % 9 % Texas 19 % 12 % 15 % 3 % New Jersey 12 % 5 % 11 % 8 % New York 5 % 1 % 1 % 6 % California 2 % 1 % 7 % 21 % Utah — % — % — % 5 % Georgia 8 % — % 5 % 7 % Alabama 5 % — % 4 % 4 % Arkansas 6 % — % 2 % — % Maryland 6 % — % 2 % — % Illinois 1 % — % 5 % 3 % Other states (none greater than 5%) 31 % 81 % 40 % 34 % Total 100 % 100 % 100 % 100 % December 31, 2018 Geographic Concentration Single-Family Rental Held-for-Sale Single-Family Rental Held-for-Investment at Redwood Single-Family Rental Held-for-Investment at CAFL Residential Bridge Florida 69 % — % — % 7 % Texas 14 % — % — % — % California — % — % — % 79 % Utah — % — % — % 5 % Other states (none greater than 5%) 17 % — % — % 9 % Total 100 % — % — % 100 % The following table presents the geographic concentration of multifamily loans recorded on our consolidated balance sheets at December 31, 2019 . Table 8.1 – Geographic Concentration of Multifamily Loans Geographic Concentration December 31, 2019 December 31, 2018 Texas 13 % 9 % California 11 % 11 % Florida 10 % — % Arizona 6 % 8 % Georgia 6 % 6 % Washington 5 % — % Colorado 5 % — % Other states (none greater than 5%) 44 % 66 % 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 residential loans recorded on our consolidated balance sheets at December 31, 2019 and December 31, 2018 . Table 6.3 – Product Types and Characteristics of Residential Loans December 31, 2019 (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 3.50 % to 4.50% 2043-09 - 2046-01 $ 2,423 $ — $ — $ 251 to $500 51 3.25 % to 5.63% 2041-01 - 2048-08 20,781 — — $ 501 to $750 97 2.88 % to 5.13% 2041-09 - 2048-08 61,708 1,364 — $ 751 to $1,000 90 2.88 % to 6.00% 2043-12 - 2048-08 77,550 1,784 971 over $1,000 49 3.00 % to 5.50% 2040-10 - 2048-09 64,937 1,428 — 299 227,399 4,576 971 Fixed loans $ — to $250 38 2.90 % to 4.80% 2026-02 - 2047-12 6,549 223 — $ 251 to $500 676 2.75 % to 6.00% 2026-01 - 2049-04 287,984 — — $ 501 to $750 1,091 2.80 % to 6.75% 2026-04 - 2049-05 669,159 2,325 614 $ 751 to $1,000 519 2.75 % to 6.63% 2026-01 - 2049-04 447,499 1,895 — over $1,000 317 3.00 % to 5.88% 2031-04 - 2049-05 414,188 3,202 — 2,641 1,825,379 7,645 614 Total HFI at Redwood: 2,940 $ 2,052,778 $ 12,221 $ 1,585 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,685 1.38 % to 6.00% 2020-01 - 2035-11 $ 169,230 $ 5,135 $ 3,109 $ 251 to $500 345 1.25 % to 5.63% 2022-01 - 2036-05 120,261 6,149 3,835 $ 501 to $750 87 1.63 % to 4.38% 2027-04 - 2035-02 53,811 3,628 1,211 $ 751 to $1,000 45 1.63 % to 4.38% 2027-11 - 2036-03 37,756 827 1,648 over $1,000 24 1.63 % to 4.00% 2027-12 - 2035-04 38,341 — — 2,186 419,399 15,739 9,803 Hybrid ARM loans: $ — to $250 2 4.25 % to 4.50% 2033-09 - 2033-10 465 — — $ 251 to $500 7 3.63 % to 5.13% 2033-07 - 2034-06 2,494 — — $ 501 to $750 2 4.50 % to 4.50% 2033-08 - 2033-08 1,181 — — over $1,000 1 4.50 % to 4.50% 2033-09 - 2033-09 1,291 — — 12 5,431 — — Total HFI at Legacy Sequoia: 2,198 $ 424,830 $ 15,739 $ 9,803 Held-for-Investment at Sequoia Choice: Fixed loans: $ — to $250 56 2.75 % to 5.50% 2038-02 - 2049-07 $ 10,743 $ — $ — $ 251 to $500 420 3.13 % to 6.13% 2037-12 - 2049-09 184,455 2,282 — $ 501 to $750 1,528 3.13 % to 6.75% 2037-02 - 2049-09 940,914 13,020 2,366 $ 751 to $1,000 835 3.25 % to 6.50% 2035-04 - 2049-09 719,609 7,856 3,297 over $1,000 317 3.50 % to 5.88% 2038-01 - 2049-09 384,959 1,108 1,093 Total HFI at Sequoia Choice: 3,156 $ 2,240,680 $ 24,266 $ 6,756 Table 6.3 – Product Types and Characteristics of Residential Loans (continued) December 31, 2019 (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 11,639 2.00 % to 11.00% 2019-11 - 2059-10 $ 1,501,538 $ 477,592 $ 79,632 $ 251 to $500 2,805 2.00 % to 7.75% 2033-08 - 2058-11 894,125 297,732 52,920 $ 501 to $750 57 2.00 % to 6.75% 2043-08 - 2058-07 31,350 8,787 2,623 over $1,000 1 4.00 % to 4.00% 2056-03 - 2056-03 1,021 1,021 — Total HFI at Freddie Mac SLST: 14,502 $ 2,428,034 $ 785,132 $ 135,175 Held-for-Sale: Hybrid ARM loans $ — to $250 7 5.20 % to 7.00% 2047-08 2048-12 $ 1,254 $ — $ — $ 251 to $500 1 4.25 % to 4.25% 2049-08 - 2049-08 432 — — $ 501 to $750 52 3.00 % to 5.50% 2047-04 - 2049-12 33,611 — — $ 751 to $1,000 33 3.25 % to 4.88% 2047-04 - 2049-11 28,573 — — over $1,000 22 3.25 % to 5.25% 2048-06 - 2049-11 28,013 — — 115 91,883 — — Fixed loans $ — to $250 2 3.88 % to 7.13% 2034-08 - 2049-07 481 — — $ 251 to $500 13 3.63 % to 6.50% 2048-01 - 2050-01 6,234 — — $ 501 to $750 301 3.20 % to 5.88% 2034-05 - 2050-01 186,251 — 747 $ 751 to $1,000 161 3.50 % to 6.50% 2034-07 - 2050-01 139,786 — — over $1,000 77 3.20 % to 5.00% 2034-08 - 2050-01 100,293 1,650 — 554 433,045 1,650 747 Total Held-for-Sale 669 $ 524,928 $ 1,650 $ 747 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 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 7,900 1,310,974 198,945 50,528 Held-for-Sale: 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 1,484 $ 1,034,284 $ 559 $ 747 (1) Rate is net of servicing fee for consolidated loans for which we do not own the MSR. 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, 2019 . Table 7.3 – Product Types and Characteristics of Business Purpose Residential Loans December 31, 2019 (In Thousands) Loan Balance Number of Loans Interest Rate Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Single-Family Rental Held-for-Investment at Redwood: Fixed loans: $ 251 to $500 20 4.88 % to 7.47% 2024-02 - 2030-01 $ 7,925 $ — $ — $ 501 to $750 26 4.45 % to 7.25% 2023-09 - 2030-01 15,620 — — $ 751 to $1,000 16 4.91 % to 6.58% 2023-11 - 2029-09 13,616 — — over $1,000 45 3.93 % to 6.94% 2023-10 - 2030-01 194,050 — — Total SFR HFI at Redwood: 107 $ 231,211 $ — $ — Single-Family Rental Held-for-Investment at CAFL: Fixed loans: $ — to $250 2 5.46 % to 5.80% 2019-11 - 2021-09 $ 398 $ — $ — $ 251 to $500 56 4.92 % to 7.05% 2020-03 - 2029-10 $ 25,643 $ 1,306 $ — $ 501 to $750 148 4.75 % to 7.31% 2020-03 - 2029-10 91,414 1,259 1,990 $ 751 to $1,000 98 4.62 % to 7.23% 2020-03 - 2029-10 85,472 1,639 879 over $1,000 479 4.31 % to 7.57% 2019-12 - 2029-11 1,875,287 18,567 26,170 Total SFR HFI at CAFL: 783 $ 2,078,214 $ 22,771 $ 29,039 Single-Family Rental Held-for-Sale: Fixed loans: $ — to $250 85 5.50 % to 7.63% 2027-03 - 2050-01 $ 10,506 $ — $ 130 $ 251 to $500 9 4.94 % to 6.00% 2024-11 - 2050-01 3,708 — — $ 501 to $750 21 4.55 % to 5.96% 2024-01 - 2030-01 13,335 — — $ 751 to $1,000 13 5.00 % to 5.93% 2024-01 - 2030-01 11,676 — — over $1,000 73 4.35 % to 6.28% 2024-01 - 2030-01 282,411 — 1,688 Total Single-Family Rental HFS: 201 $ 321,636 $ — $ 1,818 Residential Bridge: Fixed loans: $ — to $250 2,207 6.53 % to 12.00% 2019-07 - 2022-01 $ 197,449 $ 1,447 $ 369 $ 251 to $500 198 6.99 % to 13.00% 2019-10 - 2022-01 71,361 2,811 675 $ 501 to $750 71 6.99 % to 9.99% 2019-11 - 2021-10 42,862 2,072 508 $ 751 to $1,000 40 7.28 % to 10.00% 2018-10 - 2022-01 34,646 1,771 2,443 over $1,000 137 5.79 % to 10.25% 2019-11 - 2022-01 394,914 31,452 4,994 Total Residential Bridge: 2,653 $ 741,232 $ 39,553 $ 8,989 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 Held-for-Sale: 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 HFS: 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 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, 2019 . Table 8.2 – Product Types and Characteristics of Multifamily Loans December 31, 2019 (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 $10,000 114 3.29 % to 4.73% 2023-02 - 2029-10 $ 674,666 $ — $ — $ 10,001 to $20,000 102 3.54 % to 4.94% 2023-09 - 2029-08 1,489,118 — — $ 20,001 to $30,000 32 3.54 % to 4.69% 2024-01 - 2026-12 750,712 — — $ 30,001 to $40,000 19 3.52 % to 4.79% 2025-05 - 2029-10 654,729 — — over $40,000 12 3.55 % to 4.65% 2024-10 - 2026-09 625,775 — — Total: 279 $ 4,195,000 $ — $ — 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 $ — $ —

Multifamily Loans (Tables)

Multifamily Loans (Tables)	12 Months Ended
	Dec. 31, 2019
Receivables [Abstract]
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, 2019 and December 31, 2018 . Table 6.2 – Geographic Concentration of Residential Loans December 31, 2019 Geographic Concentration Held-for-Sale Held-for- Held-for- Investment at Sequoia Choice Held-for-Investment at Freddie Mac SLST Held-for- California 36 % 18 % 35 % 14 % 45 % Washington 7 % 1 % 7 % 2 % 5 % Texas 6 % 6 % 9 % 3 % 8 % Colorado 6 % 3 % 4 % — % 4 % Florida 4 % 14 % 5 % 10 % 5 % New Jersey 2 % 4 % 2 % 7 % 2 % New York 1 % 10 % 4 % 10 % 4 % Other states (none greater than 5%) 38 % 44 % 34 % 54 % 27 % Total 100 % 100 % 100 % 100 % 100 % December 31, 2018 Geographic Concentration Held-for-Sale Held-for- Held-for- 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 % The following table presents the geographic concentration of business purpose residential loans recorded on our consolidated balance sheets at December 31, 2019 . Table 7.2 – Geographic Concentration of Business Purpose Residential Loans December 31, 2019 Geographic Concentration Single-Family Rental Held-for-Sale Single-Family Rental Held-for-Investment at Redwood Single-Family Rental Held-for-Investment at CAFL Residential Bridge Florida 5 % — % 8 % 9 % Texas 19 % 12 % 15 % 3 % New Jersey 12 % 5 % 11 % 8 % New York 5 % 1 % 1 % 6 % California 2 % 1 % 7 % 21 % Utah — % — % — % 5 % Georgia 8 % — % 5 % 7 % Alabama 5 % — % 4 % 4 % Arkansas 6 % — % 2 % — % Maryland 6 % — % 2 % — % Illinois 1 % — % 5 % 3 % Other states (none greater than 5%) 31 % 81 % 40 % 34 % Total 100 % 100 % 100 % 100 % December 31, 2018 Geographic Concentration Single-Family Rental Held-for-Sale Single-Family Rental Held-for-Investment at Redwood Single-Family Rental Held-for-Investment at CAFL Residential Bridge Florida 69 % — % — % 7 % Texas 14 % — % — % — % California — % — % — % 79 % Utah — % — % — % 5 % Other states (none greater than 5%) 17 % — % — % 9 % Total 100 % — % — % 100 % The following table presents the geographic concentration of multifamily loans recorded on our consolidated balance sheets at December 31, 2019 . Table 8.1 – Geographic Concentration of Multifamily Loans Geographic Concentration December 31, 2019 December 31, 2018 Texas 13 % 9 % California 11 % 11 % Florida 10 % — % Arizona 6 % 8 % Georgia 6 % 6 % Washington 5 % — % Colorado 5 % — % Other states (none greater than 5%) 44 % 66 % 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 residential loans recorded on our consolidated balance sheets at December 31, 2019 and December 31, 2018 . Table 6.3 – Product Types and Characteristics of Residential Loans December 31, 2019 (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 3.50 % to 4.50% 2043-09 - 2046-01 $ 2,423 $ — $ — $ 251 to $500 51 3.25 % to 5.63% 2041-01 - 2048-08 20,781 — — $ 501 to $750 97 2.88 % to 5.13% 2041-09 - 2048-08 61,708 1,364 — $ 751 to $1,000 90 2.88 % to 6.00% 2043-12 - 2048-08 77,550 1,784 971 over $1,000 49 3.00 % to 5.50% 2040-10 - 2048-09 64,937 1,428 — 299 227,399 4,576 971 Fixed loans $ — to $250 38 2.90 % to 4.80% 2026-02 - 2047-12 6,549 223 — $ 251 to $500 676 2.75 % to 6.00% 2026-01 - 2049-04 287,984 — — $ 501 to $750 1,091 2.80 % to 6.75% 2026-04 - 2049-05 669,159 2,325 614 $ 751 to $1,000 519 2.75 % to 6.63% 2026-01 - 2049-04 447,499 1,895 — over $1,000 317 3.00 % to 5.88% 2031-04 - 2049-05 414,188 3,202 — 2,641 1,825,379 7,645 614 Total HFI at Redwood: 2,940 $ 2,052,778 $ 12,221 $ 1,585 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,685 1.38 % to 6.00% 2020-01 - 2035-11 $ 169,230 $ 5,135 $ 3,109 $ 251 to $500 345 1.25 % to 5.63% 2022-01 - 2036-05 120,261 6,149 3,835 $ 501 to $750 87 1.63 % to 4.38% 2027-04 - 2035-02 53,811 3,628 1,211 $ 751 to $1,000 45 1.63 % to 4.38% 2027-11 - 2036-03 37,756 827 1,648 over $1,000 24 1.63 % to 4.00% 2027-12 - 2035-04 38,341 — — 2,186 419,399 15,739 9,803 Hybrid ARM loans: $ — to $250 2 4.25 % to 4.50% 2033-09 - 2033-10 465 — — $ 251 to $500 7 3.63 % to 5.13% 2033-07 - 2034-06 2,494 — — $ 501 to $750 2 4.50 % to 4.50% 2033-08 - 2033-08 1,181 — — over $1,000 1 4.50 % to 4.50% 2033-09 - 2033-09 1,291 — — 12 5,431 — — Total HFI at Legacy Sequoia: 2,198 $ 424,830 $ 15,739 $ 9,803 Held-for-Investment at Sequoia Choice: Fixed loans: $ — to $250 56 2.75 % to 5.50% 2038-02 - 2049-07 $ 10,743 $ — $ — $ 251 to $500 420 3.13 % to 6.13% 2037-12 - 2049-09 184,455 2,282 — $ 501 to $750 1,528 3.13 % to 6.75% 2037-02 - 2049-09 940,914 13,020 2,366 $ 751 to $1,000 835 3.25 % to 6.50% 2035-04 - 2049-09 719,609 7,856 3,297 over $1,000 317 3.50 % to 5.88% 2038-01 - 2049-09 384,959 1,108 1,093 Total HFI at Sequoia Choice: 3,156 $ 2,240,680 $ 24,266 $ 6,756 Table 6.3 – Product Types and Characteristics of Residential Loans (continued) December 31, 2019 (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 11,639 2.00 % to 11.00% 2019-11 - 2059-10 $ 1,501,538 $ 477,592 $ 79,632 $ 251 to $500 2,805 2.00 % to 7.75% 2033-08 - 2058-11 894,125 297,732 52,920 $ 501 to $750 57 2.00 % to 6.75% 2043-08 - 2058-07 31,350 8,787 2,623 over $1,000 1 4.00 % to 4.00% 2056-03 - 2056-03 1,021 1,021 — Total HFI at Freddie Mac SLST: 14,502 $ 2,428,034 $ 785,132 $ 135,175 Held-for-Sale: Hybrid ARM loans $ — to $250 7 5.20 % to 7.00% 2047-08 2048-12 $ 1,254 $ — $ — $ 251 to $500 1 4.25 % to 4.25% 2049-08 - 2049-08 432 — — $ 501 to $750 52 3.00 % to 5.50% 2047-04 - 2049-12 33,611 — — $ 751 to $1,000 33 3.25 % to 4.88% 2047-04 - 2049-11 28,573 — — over $1,000 22 3.25 % to 5.25% 2048-06 - 2049-11 28,013 — — 115 91,883 — — Fixed loans $ — to $250 2 3.88 % to 7.13% 2034-08 - 2049-07 481 — — $ 251 to $500 13 3.63 % to 6.50% 2048-01 - 2050-01 6,234 — — $ 501 to $750 301 3.20 % to 5.88% 2034-05 - 2050-01 186,251 — 747 $ 751 to $1,000 161 3.50 % to 6.50% 2034-07 - 2050-01 139,786 — — over $1,000 77 3.20 % to 5.00% 2034-08 - 2050-01 100,293 1,650 — 554 433,045 1,650 747 Total Held-for-Sale 669 $ 524,928 $ 1,650 $ 747 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 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 7,900 1,310,974 198,945 50,528 Held-for-Sale: 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 1,484 $ 1,034,284 $ 559 $ 747 (1) Rate is net of servicing fee for consolidated loans for which we do not own the MSR. 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, 2019 . Table 7.3 – Product Types and Characteristics of Business Purpose Residential Loans December 31, 2019 (In Thousands) Loan Balance Number of Loans Interest Rate Maturity Date Total Principal 30-89 Days DQ 90+ Days DQ Single-Family Rental Held-for-Investment at Redwood: Fixed loans: $ 251 to $500 20 4.88 % to 7.47% 2024-02 - 2030-01 $ 7,925 $ — $ — $ 501 to $750 26 4.45 % to 7.25% 2023-09 - 2030-01 15,620 — — $ 751 to $1,000 16 4.91 % to 6.58% 2023-11 - 2029-09 13,616 — — over $1,000 45 3.93 % to 6.94% 2023-10 - 2030-01 194,050 — — Total SFR HFI at Redwood: 107 $ 231,211 $ — $ — Single-Family Rental Held-for-Investment at CAFL: Fixed loans: $ — to $250 2 5.46 % to 5.80% 2019-11 - 2021-09 $ 398 $ — $ — $ 251 to $500 56 4.92 % to 7.05% 2020-03 - 2029-10 $ 25,643 $ 1,306 $ — $ 501 to $750 148 4.75 % to 7.31% 2020-03 - 2029-10 91,414 1,259 1,990 $ 751 to $1,000 98 4.62 % to 7.23% 2020-03 - 2029-10 85,472 1,639 879 over $1,000 479 4.31 % to 7.57% 2019-12 - 2029-11 1,875,287 18,567 26,170 Total SFR HFI at CAFL: 783 $ 2,078,214 $ 22,771 $ 29,039 Single-Family Rental Held-for-Sale: Fixed loans: $ — to $250 85 5.50 % to 7.63% 2027-03 - 2050-01 $ 10,506 $ — $ 130 $ 251 to $500 9 4.94 % to 6.00% 2024-11 - 2050-01 3,708 — — $ 501 to $750 21 4.55 % to 5.96% 2024-01 - 2030-01 13,335 — — $ 751 to $1,000 13 5.00 % to 5.93% 2024-01 - 2030-01 11,676 — — over $1,000 73 4.35 % to 6.28% 2024-01 - 2030-01 282,411 — 1,688 Total Single-Family Rental HFS: 201 $ 321,636 $ — $ 1,818 Residential Bridge: Fixed loans: $ — to $250 2,207 6.53 % to 12.00% 2019-07 - 2022-01 $ 197,449 $ 1,447 $ 369 $ 251 to $500 198 6.99 % to 13.00% 2019-10 - 2022-01 71,361 2,811 675 $ 501 to $750 71 6.99 % to 9.99% 2019-11 - 2021-10 42,862 2,072 508 $ 751 to $1,000 40 7.28 % to 10.00% 2018-10 - 2022-01 34,646 1,771 2,443 over $1,000 137 5.79 % to 10.25% 2019-11 - 2022-01 394,914 31,452 4,994 Total Residential Bridge: 2,653 $ 741,232 $ 39,553 $ 8,989 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 Held-for-Sale: 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 HFS: 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 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, 2019 . Table 8.2 – Product Types and Characteristics of Multifamily Loans December 31, 2019 (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 $10,000 114 3.29 % to 4.73% 2023-02 - 2029-10 $ 674,666 $ — $ — $ 10,001 to $20,000 102 3.54 % to 4.94% 2023-09 - 2029-08 1,489,118 — — $ 20,001 to $30,000 32 3.54 % to 4.69% 2024-01 - 2026-12 750,712 — — $ 30,001 to $40,000 19 3.52 % to 4.79% 2025-05 - 2029-10 654,729 — — over $40,000 12 3.55 % to 4.65% 2024-10 - 2026-09 625,775 — — Total: 279 $ 4,195,000 $ — $ — 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, 2019
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, 2019 and December 31, 2018 . Table 9.1 – Fair Values of Real Estate Securities by Type (In Thousands) December 31, 2019 December 31, 2018 Trading $ 860,540 $ 1,118,612 Available-for-sale 239,334 333,882 Total Real Estate Securities $ 1,099,874 $ 1,452,494
Trading Securities by Collateral Type	The following table presents the fair value of trading securities by position and collateral type at December 31, 2019 and December 31, 2018 . Table 9.2 – Trading Securities by Position (In Thousands) December 31, 2019 December 31, 2018 Senior $ 150,067 $ 158,670 Mezzanine 538,489 610,819 Subordinate 171,984 349,123 Total Trading Securities $ 860,540 $ 1,118,612
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, 2019 and December 31, 2018 . Table 9.3 – Available-for-Sale Securities by Position (In Thousands) December 31, 2019 December 31, 2018 Senior $ 25,792 $ 87,615 Mezzanine 13,687 36,407 Subordinate 199,855 209,860 Total AFS Securities $ 239,334 $ 333,882
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, 2019 and December 31, 2018 . Table 9.4 – Carrying Value of AFS Securities December 31, 2019 (In Thousands) Senior Mezzanine Subordinate Total Principal balance $ 26,331 $ 13,512 $ 264,234 $ 304,077 Credit reserve (533 ) — (32,407 ) (32,940 ) Unamortized discount, net (10,427 ) (527 ) (113,301 ) (124,255 ) Amortized cost 15,371 12,985 118,526 146,882 Gross unrealized gains 10,450 702 81,329 92,481 Gross unrealized losses (29 ) — — (29 ) Carrying Value $ 25,792 $ 13,687 $ 199,855 $ 239,334 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
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, 2019 and 2018 , 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, 2019 Year Ended December 31, 2018 Credit Unamortized Credit Unamortized (In Thousands) Beginning balance $ 41,370 $ 151,200 $ 46,549 $ 183,753 Amortization of net discount — (7,921 ) — (14,098 ) Realized credit losses (2,606 ) — (2,165 ) — Acquisitions 3,712 1,910 6,315 2,716 Sales, calls, other (9,453 ) (21,017 ) (1,850 ) (28,739 ) Impairments — — 89 — Transfers to (release of) credit reserves, net (83 ) 83 (7,568 ) 7,568 Ending Balance $ 32,940 $ 124,255 $ 41,370 $ 151,200
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, 2019 and December 31, 2018 . Table 9.6 – Components of Fair Value of 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, 2019 $ — $ — $ — $ 5,830 $ (29 ) $ 5,801 December 31, 2018 12,923 (499 ) 12,424 7,464 (49 ) 7,415
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, 2019 . Table 9.7 – Significant Valuation Assumptions December 31, 2019 Range for Securities Prepayment rates 15 % - 15% Projected losses 1 % - 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, 2019 , 2018 , and 2017 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) 2019 2018 2017 Balance at beginning of period $ 18,652 $ 21,037 $ 28,261 Additions Initial credit impairments — 76 178 Subsequent credit impairments — — 47 Reductions Securities sold, or expected to sell (77 ) (1,218 ) (4,898 ) Securities with no outstanding principal at period end (4,417 ) (1,243 ) (2,551 ) Balance at End of Period $ 14,158 $ 18,652 $ 21,037
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, 2019 , 2018 , and 2017 . Table 9.9 – Gross Realized Gains and Losses on AFS Securities Years Ended December 31, (In Thousands) 2019 2018 2017 Gross realized gains - sales $ 17,582 $ 27,127 $ 13,927 Gross realized gains - calls 6,239 43 677 Gross realized losses - sales — (129 ) — Gross realized losses - calls — — (497 ) Total Realized Gains on Sales and Calls of AFS Securities, net $ 23,821 $ 27,041 $ 14,107

Other Investments (Tables)

Other Investments (Tables)	12 Months Ended
	Dec. 31, 2019
Investments, All Other Investments [Abstract]
Summary of Other Investments	Other investments at December 31, 2019 and December 31, 2018 are summarized in the following table. Table 10.1 – Components of Other Investments (In Thousands) December 31, 2019 December 31, 2018 Servicer advance investments $ 169,204 $ 300,468 Shared home appreciation options 45,085 — Mortgage servicing rights 42,224 60,281 Investment in multifamily loan fund 39,802 — Excess MSRs 31,814 27,312 Participation in loan warehouse facility — 39,703 Investment in 5 Arches — 10,754 Other 30,001 — Total Other Investments $ 358,130 $ 438,518
Components of Servicer Advance Investments	The servicer advance receivables were comprised of the following types of advances at December 31, 2019 and December 31, 2018 : Table 10.2 – Components of Servicer Advance Receivables (In Thousands) December 31, 2019 December 31, 2018 Principal and interest advances $ 15,081 $ 144,336 Escrow advances (taxes and insurance advances) 96,732 94,828 Corporate advances 39,769 47,614 Total Servicer Advance Receivables $ 151,582 $ 286,778
Income from Mortgage Servicing Rights, Net	The following table presents activity for MSRs for the years ended December 31, 2019 , 2018 , and 2017 . Table 10.3 – Activity for MSRs Years Ended December 31, (In Thousands) 2019 2018 2017 Balance at beginning of period $ 60,281 $ 63,598 $ 118,526 Additions 868 328 8,026 Sales — (1,077 ) (52,788 ) Changes in fair value due to: Changes in assumptions (1) (10,659 ) 4,434 (1,088 ) Other changes (2) (8,266 ) (7,002 ) (9,078 ) Balance at End of Period $ 42,224 $ 60,281 $ 63,598 (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, 2019 , 2018 , and 2017 . Table 10.4 – Components of MSR Income, net Years Ended December 31, (In Thousands) 2019 2018 2017 Servicing income $ 15,038 $ 15,372 $ 21,120 Cost of sub-servicer (1,465 ) (1,444 ) (2,828 ) Net servicing fee income 13,573 13,928 18,292 Market valuation changes of MSRs (18,856 ) (2,508 ) (10,166 ) Market valuation changes of associated derivatives (1) 8,596 (4,734 ) (568 ) MSR reversal of provision for repurchases 208 390 302 MSR Income, Net $ 3,521 $ 7,076 $ 7,860 (1) MSR income, net is included in Other income on our consolidated statements of income.

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2019
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, 2019 and December 31, 2018 . Table 11.1 – Fair Value and Notional Amount of Derivative Financial Instruments December 31, 2019 December 31, 2018 Fair Value Notional Amount Fair Value Notional Amount (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 17,095 $ 1,399,000 $ 28,211 $ 2,106,500 TBAs 5,755 2,445,000 4,665 520,000 Interest rate futures 777 213,700 — — Swaptions 1,925 1,065,000 — — Assets - Other Derivatives Loan purchase and interest rate lock commitments 10,149 1,537,162 2,913 331,161 Total Assets $ 35,701 $ 6,659,862 $ 35,789 $ 2,957,661 Liabilities - Cash Flow Hedges Interest rate swaps $ (51,530 ) $ 139,500 $ (34,492 ) $ 139,500 Liabilities - Risk Management Derivatives Interest rate swaps (97,235 ) 2,314,300 (36,416 ) 1,742,000 TBAs (13,359 ) 4,160,000 (13,215 ) 935,000 Interest rate futures (10 ) 12,300 — — Liabilities - Other Derivatives Loan purchase commitments (1,290 ) 303,394 (732 ) 137,224 Total Liabilities $ (163,424 ) $ 6,929,494 $ (84,855 ) $ 2,953,724 Total Derivative Financial Instruments, Net $ (127,723 ) $ 13,589,356 $ (49,066 ) $ 5,911,385
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, 2019 , 2018 , and 2017 . Table 11.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Years Ended December 31, (In Thousands) 2019 2018 2017 Net interest expense on cash flows hedges $ (2,847 ) $ (3,228 ) $ (4,602 ) Realized net losses reclassified from other comprehensive income — — (45 ) Total Interest Expense $ (2,847 ) $ (3,228 ) $ (4,647 )

Other Assets and Liabilities (T

Other Assets and Liabilities (Tables)	12 Months Ended
	Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Summary of Other Assets	Other assets at December 31, 2019 and December 31, 2018 are summarized in the following table. Table 12.1 – Components of Other Assets (In Thousands) December 31, 2019 December 31, 2018 Margin receivable $ 209,776 $ 100,773 FHLBC stock 43,393 43,393 Pledged collateral 32,945 42,433 Investment receivable 23,330 6,959 Right-of-use asset 11,866 — REO 9,462 3,943 Fixed assets and leasehold improvements (1) 4,901 5,106 Other 12,590 15,218 Total Other Assets $ 348,263 $ 217,825 (1) Fixed assets and leasehold improvements had a basis of $11 million and accumulated depreciation of $7 million at December 31, 2019 .
Summary of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities at December 31, 2019 and December 31, 2018 are summarized in the following table. Table 12.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) December 31, 2019 December 31, 2018 Accrued compensation $ 33,888 $ 19,769 Contingent consideration 28,484 — Guarantee obligations 14,009 16,711 Lease liability 13,443 — Payable to minority partner 13,189 14,331 Residential bridge loan holdbacks 10,682 — Accrued taxes payable 5,268 423 Deferred tax liabilities 5,152 9,022 Residential loan and MSR repurchase reserve 4,268 4,189 Legal reserve 2,000 2,000 Margin payable 1,700 835 Other 14,155 11,439 Total Accrued Expenses and Other Liabilities $ 146,238 $ 78,719

Short-Term Debt (Tables)

Short-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2019
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, 2019 and December 31, 2018 . Table 13.1 – Short-Term Debt December 31, 2019 (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 $ 185,894 $ 1,425,000 3.23 % 1/2020-10/2020 69 Business purpose residential loan warehouse (2) 8 814,118 1,475,000 4.11 % 12/2020-5/2022 489 Real estate securities repo (1) 10 1,176,579 — 2.94 % 1/2020-3/2020 23 Total Short-Term Debt Facilities 22 2,176,591 Servicer advance financing 1 152,554 400,000 3.56 % 11/2020 335 Total Short-Term Debt $ 2,329,145 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 Business purpose residential loan warehouse (2) 4 88,380 480,000 4.99 % 11/2019-6/2021 594 Real estate securities repo (1) 9 988,890 — 3.47 % 1/2019-3/2019 26 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 (1) Borrowings under our facilities are generally charged interest based on a specified margin over the one-month LIBOR interest rate. At December 31, 2019 , 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, 2019 . Borrowings under these facilities will be repaid as the underlying loans mature or are sold to third parties or transferred to securitizations.
Collateral for Short-Term Debt	The following table below presents the value of loans and securities pledged as collateral under our short-term debt facilities at December 31, 2019 and December 31, 2018 . Table 13.2 – Collateral for Short-Term Debt (In Thousands) December 31, 2019 December 31, 2018 Collateral Type Held-for-sale residential loans $ 201,949 $ 935,132 Business purpose residential loans 988,179 125,404 Real estate securities On balance sheet 618,881 844,465 Sequoia Choice securitizations (1) 111,341 130,139 Freddie Mac SLST securitizations (1) 381,640 228,920 Freddie Mac K-Series securitizations (1) 252,284 17,521 CAFL securitizations (1) 127,840 — Total real estate securities owned 1,491,986 1,221,045 Total Collateral for Short-Term Debt $ 2,682,114 $ 2,281,581 (1)
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, 2019 . Table 13.3 – Short-Term Debt by Collateral Type and Remaining Maturities December 31, 2019 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for-sale residential loans $ 49,084 $ 110,446 $ 26,364 $ 185,894 Business purpose residential loans — — 814,118 814,118 Real estate securities 824,054 352,525 — 1,176,579 Total Secured Short-Term Debt 873,138 462,971 840,482 2,176,591 Servicer advance financing — — 152,554 152,554 Total Short-Term Debt $ 873,138 $ 462,971 $ 993,036 $ 2,329,145

Asset-Backed Securities Issued

Asset-Backed Securities Issued (Tables)	12 Months Ended
	Dec. 31, 2019
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 our consolidated securitization entities at December 31, 2019 and December 31, 2018 , along with other selected information, are summarized in the following table. Table 14.1 – Asset-Backed Securities Issued December 31, 2019 (Dollars in Thousands) Legacy Sequoia Sequoia Choice Freddie Mac SLST Freddie Mac K-Series CAFL Total Certificates with principal balance $ 420,056 $ 1,979,719 $ 1,842,682 $ 3,844,789 $ 1,875,007 $ 9,962,253 Interest-only certificates 1,282 16,514 30,291 217,891 90,134 356,112 Market valuation adjustments (18,873 ) 40,965 45,349 93,559 36,110 197,110 ABS Issued, Net $ 402,465 $ 2,037,198 $ 1,918,322 $ 4,156,239 $ 2,001,251 $ 10,515,475 Range of weighted average interest rates, by series 1.94% to 3.26% 4.40% to 5.05% 3.50 % 3.35% to 4.35% 3.25% to 5.36% Stated maturities 2024 - 2036 2047 - 2049 2028 - 2029 2025 - 2049 2022 - 2048 Number of series 20 9 2 5 10 December 31, 2018 (Dollars in Thousands) Legacy Sequoia Sequoia Freddie Mac SLST Freddie Mac K-Series CAFL 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 —
Schedule of Interest Payable On Asset-Backed Securities Issued	The following table summarizes the accrued interest payable on ABS issued at December 31, 2019 and December 31, 2018 . Interest due on consolidated ABS issued is payable monthly. Table 14.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) December 31, 2019 December 31, 2018 Legacy Sequoia $ 395 $ 571 Sequoia Choice 7,732 7,180 Freddie Mac SLST 5,374 2,907 Freddie Mac K-Series 12,887 6,239 CAFL 7,298 — Total Accrued Interest Payable on ABS Issued $ 33,686 $ 16,897
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, 2019 and December 31, 2018 . Table 14.3 – Collateral for Asset-Backed Securities Issued December 31, 2019 (In Thousands) Legacy Sequoia Sequoia Choice Freddie Mac SLST Freddie Mac K-Series CAFL Total Residential loans $ 407,890 $ 2,291,463 $ 2,367,215 $ — $ — $ 5,066,568 Business purpose residential loans — — — — 2,192,552 2,192,552 Multifamily loans — — — 4,408,524 — 4,408,524 Restricted cash 143 27 — — — 170 Accrued interest receivable 655 9,824 7,313 13,539 9,572 40,903 REO 460 — 445 — 1,795 2,700 Total Collateral for ABS Issued $ 409,148 $ 2,301,314 $ 2,374,973 $ 4,422,063 $ 2,203,919 $ 11,711,417 December 31, 2018 (In Thousands) Legacy Sequoia Sequoia Freddie Mac SLST Freddie Mac K-Series CAFL 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

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt	The following table presents maturities of our FHLBC borrowings by year at December 31, 2019 . Table 15.1 – Maturities of FHLBC Borrowings by Year (In Thousands) December 31, 2019 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, 2019
Commitments and Contingencies Disclosure [Abstract]
Future Lease Commitments	The following table presents our future lease commitments at December 31, 2019 . Table 16.1 – Future Lease Commitments by Year (In Thousands) December 31, 2019 2020 $ 3,395 2021 2,275 2022 1,706 2023 1,520 2024 1,558 2025 and thereafter 5,678 Total Lease Commitments 16,132 Less: Imputed interest (2,689 ) Lease Liability $ 13,443

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2019
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, 2019 and 2018 . Table 17.1 – Changes in Accumulated Other Comprehensive Income by Component Years Ended December 31, 2019 2018 (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 $ 95,342 $ (34,045 ) $ 128,201 $ (42,953 ) Other comprehensive income (loss) 17,077 (16,894 ) (7,298 ) 8,908 Amounts reclassified from other (1) (19,967 ) — (25,561 ) — Net current-period other comprehensive income (loss) (2,890 ) (16,894 ) (32,859 ) 8,908 Balance at End of Period $ 92,452 $ (50,939 ) $ 95,342 $ (34,045 ) (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, 2019 and 2018 . 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 2019 2018 Net Realized (Gain) Loss on AFS Securities Other than temporary impairment (1) Investment fair value changes, net $ — $ 89 Gain on sale of AFS securities Realized gains, net (19,967 ) (27,178 ) Gain on sale of AFS securities Provision for income taxes — 1,528 $ (19,967 ) $ (25,561 ) (1) For the year ended December 31, 2019 , there were no other-than-temporary impairments. 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.
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, 2019 , 2018 , and 2017 . Table 17.3 – Basic and Diluted Earnings per Common Share Years Ended December 31, (In Thousands, except Share Data) 2019 2018 2017 Basic Earnings per Common Share: Net income attributable to Redwood $ 169,183 $ 119,600 $ 140,406 Less: Dividends and undistributed earnings allocated to participating securities (4,797 ) (3,754 ) (3,632 ) Net income allocated to common shareholders $ 164,386 $ 115,846 $ 136,774 Basic weighted average common shares outstanding 101,120,744 78,724,912 76,792,957 Basic Earnings per Common Share $ 1.63 $ 1.47 $ 1.78 Diluted Earnings per Common Share: Net income attributable to Redwood $ 169,183 $ 119,600 $ 140,406 Less: Dividends and undistributed earnings allocated to participating securities (5,273 ) (4,283 ) (3,836 ) Add back: Interest expense on convertible notes for the period, net of tax 36,212 32,653 26,898 Net income allocated to common shareholders $ 200,122 $ 147,970 $ 163,468 Weighted average common shares outstanding 101,147,225 78,724,912 76,792,957 Net effect of dilutive equity awards 251,100 189,120 185,383 Net effect of assumed convertible notes conversion to common shares 35,382,269 31,113,738 24,996,668 Diluted weighted average common shares outstanding 136,780,594 110,027,770 101,975,008 Diluted Earnings per Common Share $ 1.46 $ 1.34 $ 1.60

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	12 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Equity Compensation Plans	The unamortized compensation cost of awards issued under the Incentive Plan and purchases under the Employee Stock Purchase Plan totaled $32 million at December 31, 2019 , as shown in the following table. Table 18.1 – Activities of Equity Compensation Costs by Award Type Year Ended December 31, 2019 (In Thousands) Restricted Stock Awards Restricted Stock Units Deferred Stock Units Performance Stock Units Employee Stock Purchase Plan Total Unrecognized compensation cost at beginning of period $ 3,498 $ 74 $ 14,489 $ 7,061 $ — $ 25,122 Equity grants — 4,233 11,230 5,275 173 20,911 Equity grant forfeitures — — (303 ) — — (303 ) Equity compensation expense (1,508 ) (773 ) (7,558 ) (3,390 ) (173 ) (13,402 ) Unrecognized Compensation Cost at End of Period $ 1,990 $ 3,534 $ 17,858 $ 8,946 $ — $ 32,328
Restricted Stock Outstanding	The following table summarizes the activities related to RSUs for the years ended December 31, 2019 , 2018 , and 2017 . Table 18.3 – Restricted Stock Units Activities Years Ended December 31, 2019 2018 2017 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of period 4,876 $ 15.38 — $ — — $ — Granted 270,297 15.66 4,876 15.38 — — Vested — — — — — — Forfeited — — — — — — Outstanding at End of Period 275,173 $ 15.65 4,876 $ 15.38 — $ — The following table summarizes the activities related to RSAs for the years ended December 31, 2019 , 2018 , and 2017 . Table 18.2 – Restricted Stock Awards Activities Years Ended December 31, 2019 2018 2017 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of period 334,606 $ 14.92 257,507 $ 15.23 204,515 $ 14.27 Granted — — 168,537 14.71 134,364 16.52 Vested (118,136 ) 15.05 (83,968 ) 15.46 (61,928 ) 14.97 Forfeited — — (7,470 ) 15.05 (19,444 ) 14.78 Outstanding at End of Period 216,470 $ 14.85 334,606 $ 14.92 257,507 $ 15.23
Deferred Stock Units Activity	The following table summarizes the activities related to DSUs for the years ended December 31, 2019 , 2018 , and 2017 . Table 18.4 – Deferred Stock Units Activities Years Ended December 31, 2019 2018 2017 Units Weighted Units Weighted Units Weighted Outstanding at beginning of period 2,336,720 $ 15.58 1,878,491 $ 15.92 1,848,862 $ 16.46 Granted 733,096 16.06 670,254 15.53 565,921 16.01 Distributions (419,113 ) 15.96 (212,025 ) 18.37 (504,417 ) 18.09 Forfeitures (19,898 ) 15.96 — — (31,875 ) 14.80 Balance at End of Period 2,630,805 $ 15.66 2,336,720 $ 15.58 1,878,491 $ 15.92
Summary of Activity Related to ESPP	The following table summarizes the activities related to the ESPP for the years ended December 31, 2019 , 2018 , and 2017 . Table 18.5 – Employee Stock Purchase Plan Activities Years Ended December 31, (In Thousands) 2019 2018 2017 Balance at beginning of period $ 6 $ 4 $ 3 Employee purchases 524 375 305 Cost of common stock issued (526 ) (373 ) (304 ) Balance at End of Period $ 4 $ 6 $ 4
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, 2019 , 2018 , and 2017 . Table 18.6 – EDCP Cash Accounts Activities Years Ended December 31, (In Thousands) 2019 2018 2017 Balance at beginning of period $ 2,484 $ 2,171 $ 2,088 New deferrals 789 759 750 Accrued interest 68 82 58 Withdrawals (887 ) (528 ) (725 ) Balance at End of Period $ 2,454 $ 2,484 $ 2,171

Mortgage Banking Activities (Ta

Mortgage Banking Activities (Tables)	12 Months Ended
	Dec. 31, 2019
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, 2019 , 2018 , and 2017 . Table 19.1 – Mortgage Banking Activities Years Ended December 31, (In Thousands) 2019 2018 2017 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ 63,527 $ 21,808 $ 69,373 Risk management derivatives (2) (17,519 ) 35,248 (17,529 ) Other income (3) 1,735 2,567 2,064 Total residential mortgage banking activities, net 47,743 59,623 53,908 Business Purpose Mortgage Banking Activities, Net Changes in fair value of: Single-family rental loans, at fair value (1) 17,004 453 — Risk management derivatives (2) 1,796 (510 ) — Residential bridge loans, at fair value 4,518 — — Other income (4) 16,205 — — Total business purpose mortgage banking activities, net 39,523 (57 ) — Mortgage Banking Activities, Net $ 87,266 $ 59,566 $ 53,908 (1) For residential loans, includes changes in fair value for associated loan purchase and forward sale commitments. For single-family rental loans, includes changes in fair value for associated interest rate lock 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. (4) Amounts in this line item include other fee income from loan originations.

Investment Fair Value Changes (

Investment Fair Value Changes (Tables)	12 Months Ended
	Dec. 31, 2019
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, 2019 , 2018 and 2017 . Table 20.1 – Investment Fair Value Changes Years Ended December 31, (In Thousands) 2019 2018 2017 Investment Fair Value Changes, Net Changes in fair value of: Residential loans held-for-investment, at Redwood $ 58,891 $ (29,573 ) $ (5,765 ) Single-family rental loans held-for-investment 272 — — Residential bridge loans held-for-investment (2,139 ) (29 ) — Trading securities 56,046 (8,055 ) 39,526 Servicer advance investments 3,001 (701 ) — Excess MSRs (3,260 ) 1,823 — Shared home appreciation options 842 — — REO (1,045 ) — — Net investments in Legacy Sequoia entities (1) (1,545 ) (1,016 ) (8,027 ) Net investments in Sequoia Choice entities (1) 6,947 443 (323 ) Net investment in Freddie Mac SLST entities (1) 27,206 1,271 — Net investments in Freddie Mac K-Series entities (1) 21,430 931 — Net investments in CAFL entities (1) (3,636 ) — — Risk-sharing and other investments (341 ) (434 ) (1,484 ) Risk management derivatives, net (127,169 ) 9,740 (12,842 ) Valuation adjustments on commercial loans held-for-sale — — 300 Impairments on AFS securities — (89 ) (1,011 ) Investment Fair Value Changes, Net $ 35,500 $ (25,689 ) $ 10,374 (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.

Other Income (Tables)

Other Income (Tables)	12 Months Ended
	Dec. 31, 2019
Other Income and Expenses [Abstract]
Interest and Other Income	The following table presents the components of Other income recorded in our consolidated statements of income for the year s ended December 31, 2019 , 2018 and 2017 . Table 21.1 – Other Income Years Ended December 31, (In Thousands) 2019 2018 2017 MSR income, net $ 3,521 $ 7,076 $ 7,860 Risk share income 3,522 3,613 3,194 FHLBC capital stock dividend 2,169 1,763 1,382 Equity investment income 1,405 618 — 5 Arches loan administration fee income 4,400 — — Gain on re-measurement of investment in 5 Arches 2,441 — — Other 1,799 — — Other Income $ 19,257 $ 13,070 $ 12,436

General and Administrative Ex_2

General and Administrative Expenses and Other Expenses (Tables)	12 Months Ended
	Dec. 31, 2019
Other Income and Expenses [Abstract]
Components of Operating Expenses	Components of our general and administrative, and other expenses for the years ended December 31, 2019 , 2018 and 2017 are presented in the following table. Table 22.1 – Components of General and Administrative Expenses and Other Expenses Years Ended December 31, (In Thousands) 2019 2018 2017 General and Administrative Expenses Fixed compensation expense $ 39,747 $ 24,445 $ 22,111 Variable compensation expense (1) 25,069 14,589 20,574 Equity compensation expense 13,402 12,388 10,141 Acquisition-related equity compensation expense (2) 1,010 — — Systems and consulting 10,746 7,451 7,073 Loan acquisition costs (3) 7,031 7,697 5,022 Office costs 6,310 4,705 4,248 Accounting and legal 5,450 5,529 2,842 Corporate costs 2,351 1,955 1,856 Other 7,556 4,023 3,289 Total General and Administrative Expenses 118,672 82,782 77,156 Other Expenses Amortization of purchase-related intangible assets (4) 8,699 177 — Contingent consideration expense (4) 3,217 — — Other 1,106 19 — Total Other Expenses 13,022 196 — Total General and Administrative Expenses and Other Expenses $ 131,694 $ 82,978 $ 77,156 (1) Variable compensation expense in 2017 includes $2 million of costs associated with the hiring of a new executive officer. (2) Acquisition-related equity compensation expense relates to 588,260 shares of restricted stock that were issued to members of CoreVest management as a component of the consideration paid to them for our purchase of their interests in CoreVest. The grant date fair value of these restricted stock awards was $10 million , which will be recognized as compensation expense over the two-year vesting period on a straight-line basis in accordance with GAAP. (3) Loan acquisition costs primarily includes underwriting and due diligence costs related to the acquisition of residential loans held-for-sale at fair value. (4) Contingent consideration expense relates to the acquisition of 5 Arches during 2019. Refer to Note 2 for additional detail.

Taxes (Tables)

Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Components of Net Deferred Tax Assets	Components of our net deferred tax assets at December 31, 2019 and December 31, 2018 are presented in the following table. Table 23.1 – Deferred Tax Assets (Liabilities) (In Thousands) December 31, 2019 December 31, 2018 Deferred Tax Assets Net operating loss carryforward – state $ 98,554 $ 103,858 Net operating loss carryforward – federal 82 — Real estate assets 676 2,400 Interest rate agreements — 2,320 Allowances and accruals 1,930 1,830 Goodwill and intangible assets 2,739 — Other 1,749 1,586 Total Deferred Tax Assets 105,730 111,994 Deferred Tax Liabilities Mortgage Servicing Rights (13,783 ) (20,068 ) Interest rate agreements (42 ) — Total Deferred Tax Liabilities (13,825 ) (20,068 ) Valuation allowance (97,057 ) (100,948 ) Total Deferred Tax Asset (Liability), net of Valuation Allowance $ (5,152 ) $ (9,022 )
Provision for Income Taxes	The following table summarizes the provision for income taxes for the years ended December 31, 2019 , 2018 , and 2017 . Table 23.2 – Provision for Income Taxes Years Ended December 31, (In Thousands) 2019 2018 2017 Current Provision for Income Taxes Federal $ 12,036 $ 11,387 $ 512 State 897 820 361 Total Current Provision for Income Taxes 12,933 12,207 873 Deferred (Benefit) Provision for Income Taxes Federal (3,976 ) (1,419 ) 10,991 State (1,517 ) 300 (112 ) Total Deferred (Benefit) Provision for Income Taxes (5,493 ) (1,119 ) 10,879 Total Provision for Income Taxes $ 7,440 $ 11,088 $ 11,752
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, 2019 , 2018 , and 2017 . Table 23.3 – Reconciliation of Statutory Tax Rate to Effective Tax Rate December 31, 2019 December 31, 2018 December 31, 2017 Federal statutory rate 21.0 % 21.0 % 34.0 % State statutory rate, net of Federal tax effect 8.6 % 8.6 % 7.2 % Differences in taxable (loss) income from GAAP income (2.1 )% (1.7 )% (3.9 )% Change in valuation allowance (2.2 )% 1.9 % (1.0 )% Dividends paid deduction (21.1 )% (21.3 )% (23.4 )% Federal statutory rate change — % — % (5.2 )% Effective Tax Rate 4.2 % 8.5 % 7.7 %

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Financial Information by Segment	The following tables present financial information by segment for the years ended December 31, 2019 , 2018 , and 2017 . Table 24.1 – Business Segment Financial Information Year Ended December 31, 2019 (In Thousands) Residential Lending Business Purpose Lending Multifamily Investments Third-Party Residential Investments Corporate/ Other Total Interest income $ 268,559 $ 54,372 $ 161,692 $ 120,009 $ 17,649 $ 622,281 Interest expense (192,359 ) (35,663 ) (151,980 ) (85,388 ) (14,418 ) (479,808 ) Net interest income 76,200 18,709 9,712 34,621 3,231 142,473 Non-interest income Mortgage banking activities, net 47,743 39,523 — — — 87,266 Investment fair value changes, net (27,920 ) (6,722 ) 27,097 44,662 (1,617 ) 35,500 Other income 9,210 5,852 1,484 — 2,711 19,257 Realized gains, net 8,292 — 134 15,395 — 23,821 Total non-interest income, net 37,325 38,653 28,715 60,057 1,094 165,844 General and administrative expenses (30,671 ) (30,655 ) (1,498 ) (2,843 ) (53,005 ) (118,672 ) Other expenses — (8,521 ) — (1,106 ) (3,395 ) (13,022 ) Provision for income taxes (4,074 ) (947 ) (11 ) (2,408 ) — (7,440 ) Segment Contribution $ 78,780 $ 17,239 $ 36,918 $ 88,321 $ (52,075 ) Net Income $ 169,183 Non-cash amortization income (expense), net $ 3,669 $ (9,173 ) $ (1 ) $ 6,957 $ (4,813 ) $ (3,361 ) Year Ended December 31, 2018 (In Thousands) Residential Lending Business Purpose Lending Multifamily Investments Third-Party Residential Investments Corporate/ Total Interest income $ 245,124 $ 4,588 $ 40,050 $ 68,919 $ 20,036 $ 378,717 Interest expense (158,498 ) (2,252 ) (34,324 ) (27,446 ) (16,519 ) (239,039 ) Net interest income 86,626 2,336 5,726 41,473 3,517 139,678 Non-interest income Mortgage banking activities, net 59,623 (57 ) — — — 59,566 Investment fair value changes, net (21,686 ) (29 ) 3,979 (6,957 ) (996 ) (25,689 ) Other income 12,452 — — — 618 13,070 Realized gains, net 7,709 — — 19,332 — 27,041 Total non-interest income (loss), net 58,098 (86 ) 3,979 12,375 (378 ) 73,988 General and administrative expenses (32,139 ) (2,597 ) (869 ) (2,855 ) (44,322 ) (82,782 ) Other expenses — — — (18 ) (178 ) (196 ) Provision for income taxes (8,033 ) — (16 ) (3,039 ) — (11,088 ) Segment Contribution $ 104,552 $ (347 ) $ 8,820 $ 47,936 $ (41,361 ) Net Income $ 119,600 Non-cash amortization income (expense), net $ 4,486 $ (290 ) $ (1 ) $ 12,295 $ (4,111 ) $ 12,379 Year Ended December 31, 2017 (In Thousands) Residential Lending Business Purpose Lending Multifamily Investments Third-Party Residential Investments Corporate/ Total Interest income $ 158,819 $ — $ 9,170 $ 60,661 $ 19,407 $ 248,057 Interest expense (66,364 ) — (6,107 ) (21,512 ) (14,833 ) (108,816 ) Net interest income 92,455 — 3,063 39,149 4,574 139,241 Non-interest income Mortgage banking activities, net 53,908 — — — — 53,908 Investment fair value changes, net (25,466 ) — 16,196 27,684 (8,040 ) 10,374 Other income 12,436 — — — — 12,436 Realized gains, net 3,907 — — 10,200 (752 ) 13,355 Total non-interest income (loss), net 44,785 — 16,196 37,884 (8,792 ) 90,073 General and administrative expenses (28,622 ) — (425 ) (2,028 ) (46,081 ) (77,156 ) Provision for income taxes (6,641 ) — (238 ) (4,873 ) — (11,752 ) Segment Contribution $ 101,977 $ — $ 18,596 $ 70,132 $ (50,299 ) Net Income $ 140,406 Non-cash amortization income (expense), net $ 4,946 $ — $ (1 ) $ 15,927 $ (3,410 ) $ 17,462
Schedule Of Corporate And Other	The following table presents the components of Corporate/Other for the years ended December 31, 2019 , 2018 , and 2017 . Table 24.2 – Components of Corporate/Other Years Ended December 31, 2019 2018 2017 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 17,649 $ — $ 17,649 $ 20,036 $ — $ 20,036 $ 19,407 $ — $ 19,407 Interest expense (14,418 ) — (14,418 ) (16,519 ) — (16,519 ) (14,789 ) (44 ) (14,833 ) Net interest income (loss) 3,231 — 3,231 3,517 — 3,517 4,618 (44 ) 4,574 Non-interest income Investment fair value changes, net (1,545 ) (72 ) (1,617 ) (1,016 ) 20 (996 ) (8,027 ) (13 ) (8,040 ) Other income — 2,711 2,711 — 618 618 — — — Realized gains, net — — — — — — — (752 ) (752 ) Total non-interest (loss) income, net (1,545 ) 2,639 1,094 (1,016 ) 638 (378 ) (8,027 ) (765 ) (8,792 ) General and administrative expenses — (53,005 ) (53,005 ) — (44,322 ) (44,322 ) — (46,081 ) (46,081 ) Other expenses — (3,395 ) (3,395 ) — (178 ) (178 ) — — — Total $ 1,686 $ (53,761 ) $ (52,075 ) $ 2,501 $ (43,862 ) $ (41,361 ) $ (3,409 ) $ (46,890 ) $ (50,299 ) (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, 2019 and December 31, 2018. Table 24.3 – Supplemental Segment Information (In Thousands) Residential Lending Business Purpose Lending Multifamily Investments Third-Party Residential Investments Corporate/ Total December 31, 2019 Residential loans $ 4,939,745 $ — $ — $ 2,367,215 $ 407,890 $ 7,714,850 Business purpose residential loans — 3,506,743 — — — 3,506,743 Multifamily loans — — 4,408,524 — — 4,408,524 Real estate securities 229,074 — 404,128 466,672 — 1,099,874 Other investments 42,224 21,002 61,018 233,886 — 358,130 Goodwill and intangible assets — 161,464 — — — 161,464 Total assets 5,410,540 3,786,641 4,889,330 3,139,616 769,313 17,995,440 December 31, 2018 Residential loans $ 5,512,116 $ — $ — $ 1,222,668 $ 519,958 $ 7,254,742 Business purpose residential loans — 141,258 — — — 141,258 Multifamily loans — — 2,144,598 — — 2,144,598 Real estate securities 364,308 — 429,079 659,107 — 1,452,494 Other investments 99,984 10,754 15,092 312,688 — 438,518 Total assets 6,186,889 160,950 2,600,150 2,232,276 757,141 11,937,406

Quarterly Financial Data - Un_2

Quarterly Financial Data - Unaudited (Tables)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data	Three Months Ended (In Thousands, except Share Data) December 31, September 30, June 30, March 31, 2019 Operating results: Interest income $ 192,581 $ 150,117 $ 148,542 $ 131,041 Interest expense (147,708 ) (116,604 ) (116,220 ) (99,276 ) Net interest income 44,873 33,513 32,322 31,765 Non-interest income 58,052 30,029 29,984 47,779 General and administrative, and other expenses (49,444 ) (29,346 ) (28,707 ) (24,197 ) Net income 49,143 34,310 31,266 54,464 Per share data: Net income – basic $ 0.42 $ 0.33 $ 0.31 $ 0.57 Net income – diluted 0.38 0.31 0.30 0.49 Regular dividends declared per common share 0.30 0.30 0.30 0.30 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 (17,538 ) 32,327 19,527 39,672 General, administrative, and other expenses (19,378 ) (21,561 ) (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

Organization (Details)

Organization (Details)	12 Months Ended
	Dec. 31, 2019segment
Accounting Policies [Abstract]
Number of operating segments	4

Basis of Presentation (Details)

Basis of Presentation (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)partnership	Dec. 31, 2018USD ($)partnership	Mar. 01, 2019USD ($)
Variable Interest Entity [Line Items]
Contingent consideration	$ 28,484	$ 0	$ 0
Number of partnerships consolidated | partnership		2	2
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, ownership interest rate	80.00%
5 Arches, LLC
Variable Interest Entity [Line Items]
Contingent consideration	$ 28,000			$ 24,621

Basis of Presentation - Acquisi

Basis of Presentation - Acquisition of 5 Arches & CoreVest (Details) - USD ($) $ in Thousands		Oct. 15, 2019	Mar. 01, 2019	Mar. 31, 2019	May 31, 2018	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Acquisition-related equity compensation expense							$ 1,010	$ 0	$ 0
Remeasurement gain							2,441	0
Acquisition related costs							3,217	0	$ 0
Goodwill	[1]						88,675	0
Contingent consideration							$ 28,484	0
5 Arches, LLC
Business Acquisition [Line Items]
Payments to acquire equity method investment					$ 10,000
Option to purchase additional equity, term					1 year		1 year
5 Arches, LLC
Business Acquisition [Line Items]
Percent acquired				80.00%
Minority interest, percentage					20.00%
Cash			$ 12,575
Contingent consideration maximum amount			27,000		$ 29,000
Contingent consideration performance term					2 years
Remeasurement gain						$ 2,000
Intangible assets			24,800
Goodwill			28,747				$ 28,747	0
Contingent consideration			24,621				28,000
Contingent consideration expense							3,000
Net interest income							100
Non-interest income							19,000
Net income							3,000
Intangible assets amortization expense							6,000
CoreVest LLC
Business Acquisition [Line Items]
Cash		$ 482,311
Contingent consideration performance term		2 years
Total consideration		$ 492,000
Restricted stock awards		10,000
Acquisition-related equity compensation expense		10,000
Intangible assets		56,500	57,000
Goodwill		59,928					59,928	$ 0
Contingent consideration		$ 0
Net interest income							11,000
Non-interest income							19,000
Net income							22,000
Intangible assets amortization expense							2,000
5 Arches LLC And CoreVest
Business Acquisition [Line Items]
Acquisition related costs							2,000
Goodwill							$ 89,000
Goodwill deductible for tax purposes			$ 75,000
[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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , respectively. See Note 4 for further discussion.

Basis of Presentation - Assets

Basis of Presentation - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands		Oct. 15, 2019	Mar. 01, 2019	Dec. 31, 2019	Dec. 31, 2018
Purchase price:
Contingent consideration, at fair value				$ 28,484	$ 0
Allocated to:
Goodwill	[1]			88,675	0
5 Arches, LLC
Purchase price:
Cash			$ 12,575
Contingent consideration, at fair value			24,621	28,000
Purchase option, at fair value			5,082
Equity method investment, at fair value			8,052
Allocated to:
Business purpose residential loans, at fair value			2,022
Cash and cash equivalents			2,128
Restricted cash			9,082
Other assets			5,473
Goodwill			28,747	28,747	0
Intangible assets			24,800
Deferred tax asset			0
Total assets acquired			72,252
Asset-backed securities issued, at fair value			0
Short-term debt, net			3,800
Accrued expenses and other liabilities			13,920
Deferred tax asset			4,202
Total liabilities assumed			21,922
Total net assets acquired			50,330
CoreVest LLC
Purchase price:
Cash		$ 482,311
Contingent consideration, at fair value		0
Purchase option, at fair value		0
Equity method investment, at fair value		0
Allocated to:
Business purpose residential loans, at fair value		2,610,490
Cash and cash equivalents		30,685
Restricted cash		0
Other assets		67,420
Goodwill		59,928		$ 59,928	$ 0
Intangible assets		56,500	$ 57,000
Deferred tax asset		2,577
Total assets acquired		2,827,600
Asset-backed securities issued, at fair value		1,656,023
Short-term debt, net		663,275
Accrued expenses and other liabilities		25,991
Deferred tax asset		0
Total liabilities assumed		2,345,289
Total net assets acquired		$ 482,311
[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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , respectively. See Note 4 for further discussion.

Basis of Presentation - Intangi

Basis of Presentation - Intangible Assets – Activity (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Finite-Lived Intangible Assets [Line Items]
Carrying Value at December 31, 2018	$ 0
Additions	81,300
Amortization Expense	(8,511)
Carrying Value at December 31, 2019	$ 72,789
Weighted Average Amortization Period (in years)	6 years
5 Arches, LLC
Finite-Lived Intangible Assets [Line Items]
Carrying Value at December 31, 2018	$ 0
Additions	24,800
Amortization Expense	(6,323)
Carrying Value at December 31, 2019	$ 18,477
Weighted Average Amortization Period (in years)	5 years
CoreVest LLC
Finite-Lived Intangible Assets [Line Items]
Carrying Value at December 31, 2018	$ 0
Additions	56,500
Amortization Expense	(2,188)
Carrying Value at December 31, 2019	$ 54,312
Weighted Average Amortization Period (in years)	6 years
Broker network | 5 Arches, LLC
Finite-Lived Intangible Assets [Line Items]
Carrying Value at December 31, 2018	$ 0
Additions	18,100
Amortization Expense	(3,017)
Carrying Value at December 31, 2019	$ 15,083
Weighted Average Amortization Period (in years)	5 years
Borrower network | CoreVest LLC
Finite-Lived Intangible Assets [Line Items]
Carrying Value at December 31, 2018	$ 0
Additions	45,300
Amortization Expense	(1,348)
Carrying Value at December 31, 2019	$ 43,952
Weighted Average Amortization Period (in years)	7 years
Non-compete agreements | 5 Arches, LLC
Finite-Lived Intangible Assets [Line Items]
Carrying Value at December 31, 2018	$ 0
Additions	2,900
Amortization Expense	(806)
Carrying Value at December 31, 2019	$ 2,094
Weighted Average Amortization Period (in years)	3 years
Non-compete agreements | CoreVest LLC
Finite-Lived Intangible Assets [Line Items]
Carrying Value at December 31, 2018	$ 0
Additions	6,600
Amortization Expense	(458)
Carrying Value at December 31, 2019	$ 6,142
Weighted Average Amortization Period (in years)	3 years
Loan administration fees on existing loan assets | 5 Arches, LLC
Finite-Lived Intangible Assets [Line Items]
Carrying Value at December 31, 2018	$ 0
Additions	2,600
Amortization Expense	(2,167)
Carrying Value at December 31, 2019	$ 433
Weighted Average Amortization Period (in years)	1 year
Tradename | 5 Arches, LLC
Finite-Lived Intangible Assets [Line Items]
Carrying Value at December 31, 2018	$ 0
Additions	1,200
Amortization Expense	(333)
Carrying Value at December 31, 2019	$ 867
Weighted Average Amortization Period (in years)	3 years
Tradename | CoreVest LLC
Finite-Lived Intangible Assets [Line Items]
Carrying Value at December 31, 2018	$ 0
Additions	2,800
Amortization Expense	(194)
Carrying Value at December 31, 2019	$ 2,606
Weighted Average Amortization Period (in years)	3 years
Developed technology | CoreVest LLC
Finite-Lived Intangible Assets [Line Items]
Carrying Value at December 31, 2018	$ 0
Additions	1,800
Amortization Expense	(188)
Carrying Value at December 31, 2019	$ 1,612
Weighted Average Amortization Period (in years)	2 years

Basis of Presentation - Intan_2

Basis of Presentation - Intangible Asset Amortization Expense by Year (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
2020	$ 15,925
2021	15,304
2022	12,800
2023	10,091
2024	7,073
2025 and thereafter	11,596
Total Future Intangible Asset Amortization	72,789	$ 0
5 Arches, LLC
Finite-Lived Intangible Assets [Line Items]
2020	5,420
2021	4,987
2022	3,848
2023	3,620
2024	602
2025 and thereafter	0
Total Future Intangible Asset Amortization	18,477	0
CoreVest LLC
Finite-Lived Intangible Assets [Line Items]
2020	10,505
2021	10,317
2022	8,952
2023	6,471
2024	6,471
2025 and thereafter	11,596
Total Future Intangible Asset Amortization	$ 54,312	$ 0

Basis of Presentation - Goodwil

Basis of Presentation - Goodwill – Activity (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 0	[1]
Goodwill recognized from acquisition	88,675
Impairment	0
Ending Balance	88,675	[1]
5 Arches, LLC
Goodwill [Roll Forward]
Beginning balance	0
Goodwill recognized from acquisition	28,747
Impairment	0
Ending Balance	28,747
CoreVest LLC
Goodwill [Roll Forward]
Beginning balance	0
Goodwill recognized from acquisition	59,928
Impairment	0
Ending Balance	$ 59,928
[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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , respectively. See Note 4 for further discussion.

Basis of Presentation - Pro For

Basis of Presentation - Pro Forma Information (Details) - 5 Arches LLC And CoreVest - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Net interest income	$ 167,680	$ 165,849
Non-interest income	193,519	103,179
Net income	$ 185,896	$ 118,125

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	Oct. 15, 2019	May 31, 2014	Dec. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2014	Dec. 31, 2013
Significant Accounting Policies [Line Items]
Risk-sharing arrangement term							10 years
SPE, assets			$ 48,000	$ 48,000	$ 47,000
SPE, liabilities			14,000	$ 14,000	17,000
Incentive Plan, awards vesting period (in years)	2 years
Incentive Plan, mandatory holding period before awards vest		3 years
Employee Stock Purchase Plan, percentage of common stock fair value that employees can purchase								85.00%
Employees maximum 401(k) contribution				100.00%
Employer matching contributions				$ 700	600	$ 500
Lease liability			13,443	13,443	0
Right-of-use asset			$ 11,866	$ 11,866	$ 0
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%
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, 2019	Dec. 31, 2018
Assets
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet	[1]	$ 35,701	$ 35,789
Liabilities
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet	[1]	(163,424)	(84,855)
Total Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(1,690,828)	(1,933,663)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(1,690,828)	(1,933,663)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		1,548,637	1,881,142
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged		141,260	48,317
Net Amount		(931)	(4,204)
Interest rate agreements
Assets
Gross Amounts of Recognized Assets (Liabilities)		19,020	28,211
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		19,020	28,211
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(14,178)	(28,211)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received		(915)	0
Net Amount		3,927	0
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(148,765)	(70,908)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(148,765)	(70,908)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		14,178	28,211
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged		134,587	42,697
Net Amount		0	0
TBAs
Assets
Gross Amounts of Recognized Assets (Liabilities)		5,755	4,665
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		5,755	4,665
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(5,755)	(3,391)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received		0	(835)
Net Amount		0	439
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(13,359)	(13,215)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(13,359)	(13,215)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		5,755	3,391
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged		6,673	5,620
Net Amount		(931)	(4,204)
Interest rate futures
Assets
Gross Amounts of Recognized Assets (Liabilities)		137
Gross Amounts Offset in Consolidated Balance Sheet		0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		137
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		137
Interest Rate Agreement, TBAs, And Futures
Assets
Gross Amounts of Recognized Assets (Liabilities)		24,912	32,876
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		24,912	32,876
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(19,933)	(31,602)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received		(915)	(835)
Net Amount		4,064	439
Loan warehouse debt
Loan warehouse debt and Security repurchase agreement
Gross Amounts of Recognized Assets (Liabilities)		(432,126)	(860,650)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(432,126)	(860,650)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		432,126	860,650
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged		0	0
Net Amount		0	0
Security repurchase agreements
Loan warehouse debt and Security repurchase agreement
Gross Amounts of Recognized Assets (Liabilities)		(1,096,578)	(988,890)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(1,096,578)	(988,890)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		1,096,578	988,890
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged		0	0
Net Amount		$ 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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , 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		96 Months Ended
	Dec. 31, 2019USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2018partnership	Dec. 31, 2019USD ($)entity	Dec. 31, 2018partnershipentity	Dec. 31, 2019USD ($)entity
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership			2		2
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				5	8	48
Gain (loss) on securitization of financial assets		$ 4
Loan acquisition, aggregate amount acquired				$ 39
Legacy Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, carrying amount, assets and liabilities, net	$ 6			6		$ 6
Sequoia Choice | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, carrying amount, assets and liabilities, net	256			256		256
Freddie Mac SLST | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, carrying amount, assets and liabilities, net	451			451		451
Freddie Mac K-Series | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, carrying amount, assets and liabilities, net	253			253		253
CoreVest LLC | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, carrying amount, assets and liabilities, net	195			195		195
Servicing Investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Servicing asset, fair value	$ 53			$ 53		$ 53

Principles of Consolidation -_2

Principles of Consolidation - Assets and Liabilities of Consolidated Variable Interest Entity's (Details) $ in Thousands	Dec. 31, 2019USD ($)investment	Dec. 31, 2018USD ($)investment
Variable Interest Entity [Line Items]
Assets	$ 11,931,869	$ 6,331,191
Liabilities	$ 10,717,072	$ 5,709,807
Number of VIEs | investment	49	33
Residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	$ 5,066,568	$ 3,822,009
Business purpose residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	2,192,552
Multifamily loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	4,408,524	2,144,598
Other investments
Variable Interest Entity [Line Items]
Assets	184,802	312,688
Cash and cash equivalents
Variable Interest Entity [Line Items]
Assets	9,015
Restricted cash
Variable Interest Entity [Line Items]
Assets	21,936	26,531
Accrued interest receivable
Variable Interest Entity [Line Items]
Assets	45,772	21,422
Other assets
Variable Interest Entity [Line Items]
Assets	2,700	3,943
Short-term debt
Variable Interest Entity [Line Items]
Liabilities	152,554	262,740
Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	34,060	17,380
Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	14,983	19,614
Asset-backed securities issued
Variable Interest Entity [Line Items]
Liabilities	10,515,475	5,410,073
Legacy Sequoia
Variable Interest Entity [Line Items]
Assets	409,148	524,869
Liabilities	$ 402,860	$ 512,811
Number of VIEs | investment	20	20
Legacy Sequoia | Residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	$ 407,890	$ 519,958
Legacy Sequoia | Business purpose residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	0
Legacy Sequoia | Multifamily loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	0	0
Legacy Sequoia | Other investments
Variable Interest Entity [Line Items]
Assets	0	0
Legacy Sequoia | Cash and cash equivalents
Variable Interest Entity [Line Items]
Assets	0
Legacy Sequoia | Restricted cash
Variable Interest Entity [Line Items]
Assets	143	146
Legacy Sequoia | Accrued interest receivable
Variable Interest Entity [Line Items]
Assets	655	822
Legacy Sequoia | Other assets
Variable Interest Entity [Line Items]
Assets	460	3,943
Legacy Sequoia | Short-term debt
Variable Interest Entity [Line Items]
Liabilities	0	0
Legacy Sequoia | Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	395	571
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	402,465	512,240
Sequoia Choice
Variable Interest Entity [Line Items]
Assets	2,301,314	2,089,392
Liabilities	$ 2,044,957	$ 1,893,212
Number of VIEs | investment	9	6
Sequoia Choice | Residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	$ 2,291,463	$ 2,079,382
Sequoia Choice | Business purpose residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	0
Sequoia Choice | Multifamily loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	0	0
Sequoia Choice | Other investments
Variable Interest Entity [Line Items]
Assets	0	0
Sequoia Choice | Cash and cash equivalents
Variable Interest Entity [Line Items]
Assets	0
Sequoia Choice | Restricted cash
Variable Interest Entity [Line Items]
Assets	27	1,022
Sequoia Choice | Accrued interest receivable
Variable Interest Entity [Line Items]
Assets	9,824	8,988
Sequoia Choice | Other assets
Variable Interest Entity [Line Items]
Assets	0	0
Sequoia Choice | Short-term debt
Variable Interest Entity [Line Items]
Liabilities	0	0
Sequoia Choice | Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	7,732	7,180
Sequoia Choice | Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	27	1,022
Sequoia Choice | Asset-backed securities issued
Variable Interest Entity [Line Items]
Liabilities	2,037,198	1,885,010
Freddie Mac SLST
Variable Interest Entity [Line Items]
Assets	2,374,973	1,226,595
Liabilities	$ 1,923,696	$ 996,655
Number of VIEs | investment	2	1
Freddie Mac SLST | Residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	$ 2,367,215	$ 1,222,669
Freddie Mac SLST | Business purpose residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	0
Freddie Mac SLST | Multifamily loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	0	0
Freddie Mac SLST | Other investments
Variable Interest Entity [Line Items]
Assets	0	0
Freddie Mac SLST | Cash and cash equivalents
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	7,313	3,926
Freddie Mac SLST | Other assets
Variable Interest Entity [Line Items]
Assets	445	0
Freddie Mac SLST | Short-term debt
Variable Interest Entity [Line Items]
Liabilities	0	0
Freddie Mac SLST | Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	5,374	2,907
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	1,918,322	993,748
Freddie Mac K-Series
Variable Interest Entity [Line Items]
Assets	4,422,063	2,151,193
Liabilities	$ 4,169,126	$ 2,025,314
Number of VIEs | investment	5	3
Freddie Mac K-Series | Residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	$ 0	$ 0
Freddie Mac K-Series | Business purpose residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	0
Freddie Mac K-Series | Multifamily loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	4,408,524	2,144,598
Freddie Mac K-Series | Other investments
Variable Interest Entity [Line Items]
Assets	0	0
Freddie Mac K-Series | Cash and cash equivalents
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	13,539	6,595
Freddie Mac K-Series | Other assets
Variable Interest Entity [Line Items]
Assets	0	0
Freddie Mac K-Series | Short-term debt
Variable Interest Entity [Line Items]
Liabilities	0	0
Freddie Mac K-Series | Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	12,887	6,239
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	4,156,239	2,019,075
CAFL
Variable Interest Entity [Line Items]
Assets	2,203,919	0
Liabilities	$ 2,008,736	$ 0
Number of VIEs | investment	10	0
CAFL | Residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	$ 0	$ 0
CAFL | Business purpose residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	2,192,552
CAFL | Multifamily loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	0	0
CAFL | Other investments
Variable Interest Entity [Line Items]
Assets	0	0
CAFL | Cash and cash equivalents
Variable Interest Entity [Line Items]
Assets	0
CAFL | Restricted cash
Variable Interest Entity [Line Items]
Assets	0	0
CAFL | Accrued interest receivable
Variable Interest Entity [Line Items]
Assets	9,572	0
CAFL | Other assets
Variable Interest Entity [Line Items]
Assets	1,795	0
CAFL | Short-term debt
Variable Interest Entity [Line Items]
Liabilities	0	0
CAFL | Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	7,485	0
CAFL | Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	0	0
CAFL | Asset-backed securities issued
Variable Interest Entity [Line Items]
Liabilities	2,001,251	0
Servicing Investment
Variable Interest Entity [Line Items]
Assets	220,452	339,142
Liabilities	$ 167,697	$ 281,815
Number of VIEs | investment	3	3
Servicing Investment | Residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	$ 0	$ 0
Servicing Investment | Business purpose residential loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	0
Servicing Investment | Multifamily loans, held-for-investment
Variable Interest Entity [Line Items]
Assets	0	0
Servicing Investment | Other investments
Variable Interest Entity [Line Items]
Assets	184,802	312,688
Servicing Investment | Cash and cash equivalents
Variable Interest Entity [Line Items]
Assets	9,015
Servicing Investment | Restricted cash
Variable Interest Entity [Line Items]
Assets	21,766	25,363
Servicing Investment | Accrued interest receivable
Variable Interest Entity [Line Items]
Assets	4,869	1,091
Servicing Investment | Other assets
Variable Interest Entity [Line Items]
Assets	0	0
Servicing Investment | Short-term debt
Variable Interest Entity [Line Items]
Liabilities	152,554	262,740
Servicing Investment | Accrued interest payable
Variable Interest Entity [Line Items]
Liabilities	187	483
Servicing Investment | Accrued expenses and other liabilities
Variable Interest Entity [Line Items]
Liabilities	14,956	18,592
Servicing Investment | Asset-backed securities issued
Variable Interest Entity [Line Items]
Liabilities	$ 0	$ 0

Principles of Consolidation - S

Principles of Consolidation - Securitization Activity 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, 2019	Dec. 31, 2018
Variable Interest Entity [Line Items]
Principal balance of loans transferred	$ 1,872,910	$ 3,188,358
Trading securities
Variable Interest Entity [Line Items]
Securities retained, at fair value	8,882	52,859
AFS Securities
Variable Interest Entity [Line Items]
Securities retained, at fair value	$ 4,847	$ 7,739

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, 2019	Dec. 31, 2018
Variable Interest Entity [Line Items]
Proceeds from new transfers	$ 1,912,334	$ 3,175,900
MSR fees received	11,857	13,417
Funding of compensating interest, net	(368)	(122)
Cash flows received on retained securities	$ 27,045	$ 28,614

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, 2019	Dec. 31, 2018
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	25.00%	9.00%
Discount rates	14.00%	14.00%
Credit loss assumptions	0.20%	0.20%
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	15.00%	10.00%
Discount rates	7.00%	5.00%
Credit loss assumptions	0.20%	0.20%

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, 2019	Dec. 31, 2018
On-balance sheet assets, at fair value:
Maximum loss exposure	$ 269,328	$ 349,997
Principal balance of loans outstanding	10,299,442	10,580,216
Principal balance of loans 30 days delinquent	41,809	21,805
Interest-only, senior and subordinate securities, classified as trading
On-balance sheet assets, at fair value:
Securities	88,425	129,111
Subordinate securities, classified as AFS
On-balance sheet assets, at fair value:
Securities	140,649	162,314
Mortgage servicing rights
On-balance sheet assets, at fair value:
Securities	$ 40,254	$ 58,572

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	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
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	$ 40,254	$ 58,572	$ 40,254	$ 58,572
Expected life (in years)	6 years	8 years
Prepayment speed assumption (annual CPR)	11.00%	7.00%
Decrease in fair value from:
10% adverse change	$ 1,643	$ 1,668	1,643	1,668
25% adverse change	$ 3,913	$ 4,027	$ 3,913	$ 4,027
Discount rate assumption	11.00%	11.00%
Impact of adverse change in prepayment speed			25.00%	25.00%
Decrease in fair value from:
100 basis point increase	$ 1,447	$ 2,323	$ 1,447	$ 2,323
200 basis point increase	2,795	4,493	$ 2,795	$ 4,493
Impact of increase in discount rate assumption			1.00%	1.00%
Decrease in fair value from:
Impact of adverse change in expected credit losses			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	$ 48,765	$ 61,178	$ 48,765	$ 61,178
Expected life (in years)	6 years	7 years
Prepayment speed assumption (annual CPR)	14.00%	10.00%
Decrease in fair value from:
10% adverse change	$ 1,908	$ 2,151	1,908	2,151
25% adverse change	$ 5,086	$ 5,127	$ 5,086	$ 5,127
Discount rate assumption	12.00%	12.00%
Impact of adverse change in prepayment speed			25.00%	25.00%
Decrease in fair value from:
100 basis point increase	$ 1,079	$ 2,190	$ 1,079	$ 2,190
200 basis point increase	$ 2,482	$ 4,226	$ 2,482	$ 4,226
Credit loss assumption	0.21%	0.20%
Impact of increase in discount rate assumption			1.00%	1.00%
Decrease in fair value from:
10% higher losses	$ 0	$ 0	$ 0	$ 0
25% higher losses	0	0	$ 0	$ 0
Impact of adverse change in expected credit losses			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	$ 180,309	$ 230,247	$ 180,309	$ 230,247
Expected life (in years)	14 years	15 years
Prepayment speed assumption (annual CPR)	16.00%	9.00%
Decrease in fair value from:
10% adverse change	$ 205	$ 201	205	201
25% adverse change	$ 1,434	$ 1,372	$ 1,434	$ 1,372
Discount rate assumption	5.00%	6.00%
Impact of adverse change in prepayment speed			25.00%	25.00%
Decrease in fair value from:
100 basis point increase	$ 18,127	$ 21,982	$ 18,127	$ 21,982
200 basis point increase	$ 33,630	$ 40,641	$ 33,630	$ 40,641
Credit loss assumption	0.21%	0.20%
Impact of increase in discount rate assumption			1.00%	1.00%
Decrease in fair value from:
10% higher losses	$ 1,804	$ 1,387	$ 1,804	$ 1,387
25% higher losses	$ 4,520	$ 3,471	$ 4,520	$ 3,471
Impact of adverse change in expected credit losses			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, 2019USD ($)
Variable Interest Entity [Line Items]
Assets	$ 887,015
Residential
Variable Interest Entity [Line Items]
Assets	870,799
Senior IO Securities
Variable Interest Entity [Line Items]
Assets	127,094
Mezzanine
Variable Interest Entity [Line Items]
Assets	508,195
Subordinate Securities
Variable Interest Entity [Line Items]
Assets	235,510
Excess MSRs
Variable Interest Entity [Line Items]
Assets	$ 16,216

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, 2019	Dec. 31, 2018
Assets
Trading securities		$ 860,540	$ 1,118,612
Available-for-sale securities		239,334	333,882
Shared home appreciation options		0	39,703
Derivative assets	[1]	35,701	35,789
Pledged collateral		32,945	42,433
Liabilities
Contingent consideration		28,484	0
Derivative liabilities	[1]	163,424	84,855
Residential Loans
Assets
MSR Fair Value		169,204	300,468
Carrying Value
Assets
Trading securities		860,540	1,118,612
Available-for-sale securities		239,334	333,882
Shared home appreciation options		45,085	0
Cash and cash equivalents		196,966	175,764
Restricted cash		93,867	29,313
Accrued interest receivable		71,058	47,105
Derivative assets		35,701	35,789
Margin receivable		209,776	100,773
FHLBC stock		43,393	43,393
Guarantee asset		1,686	2,618
Pledged collateral		32,945	42,433
Liabilities
Accrued interest payable		60,655	42,528
Margin payable		1,700	835
Guarantee obligation		14,009	16,711
Contingent consideration			0
Derivative liabilities		163,424	84,855
ABS issued at fair value		10,515,475	5,410,073
FHLBC long-term borrowings		1,999,999	1,999,999
Subordinate securities financing facility		183,520	0
Convertible notes, net		631,125	633,196
Trust preferred securities and subordinated notes, net		138,628	138,582
Carrying Value | Servicer advance investments
Assets
MSR Fair Value		169,204	300,468
Carrying Value | MSRs
Assets
MSR Fair Value		42,224	60,281
Carrying Value | Participation In Loan Warehouse Facility
Assets
Loans, held-for-investment		0	39,703
Carrying Value | Excess MSRs
Assets
Other assets		31,814	27,312
Carrying Value | REO
Assets
Other assets		9,462	3,943
Carrying Value | Credit facilities
Liabilities
Short-term debt facilities		2,176,591	1,937,920
Carrying Value | Servicer advance financing
Liabilities
Short-term debt facilities		152,554	262,740
Carrying Value | Residential Loans | Residential loans, held-for-sale at fair value
Assets
Loans, held-for-sale		536,385	1,048,801
Carrying Value | Residential Loans | Residential loans, held-for-investment
Assets
Loans, held-for-investment		7,178,465	6,205,941
Carrying Value | Residential Loans | Business purpose residential loans, held-for-sale, at fair value
Assets
Loans, held-for-sale		331,565	28,460
Loans, held-for-investment		3,175,178	112,798
Carrying Value | Residential Loans | Multifamily loans
Assets
Loans, held-for-investment		4,408,524	2,144,598
Fair Value
Assets
Trading securities		860,540	1,118,612
Available-for-sale securities		239,334	333,882
Shared home appreciation options		45,085	0
Cash and cash equivalents		196,966	175,764
Restricted cash		93,867	29,313
Accrued interest receivable		71,058	47,105
Derivative assets		35,701	35,789
Margin receivable		209,776	100,773
FHLBC stock		43,393	43,393
Guarantee asset		1,686	2,618
Pledged collateral		32,945	42,433
Liabilities
Accrued interest payable		60,655	42,528
Margin payable		1,700	835
Guarantee obligation		13,754	16,774
Contingent consideration		28,484	0
Derivative liabilities		163,424	84,855
ABS issued at fair value		10,515,475	5,410,073
FHLBC long-term borrowings		1,999,999	1,999,999
Subordinate securities financing facility		184,666	0
Convertible notes, net		661,985	618,271
Trust preferred securities and subordinated notes, net		99,045	102,533
Fair Value | Servicer advance investments
Assets
MSR Fair Value		169,204	300,468
Fair Value | MSRs
Assets
MSR Fair Value		42,224	60,281
Fair Value | Participation In Loan Warehouse Facility
Assets
Loans, held-for-investment		0	39,703
Fair Value | Excess MSRs
Assets
Other assets		31,814	27,312
Fair Value | REO
Assets
Other assets		10,389	4,396
Fair Value | Credit facilities
Liabilities
Short-term debt facilities		2,176,591	1,937,920
Fair Value | Servicer advance financing
Liabilities
Short-term debt facilities		152,554	262,740
Fair Value | Residential Loans | Residential loans, held-for-sale at fair value
Assets
Loans, held-for-sale		536,509	1,048,821
Fair Value | Residential Loans | Residential loans, held-for-investment
Assets
Loans, held-for-investment		7,178,465	6,205,941
Fair Value | Residential Loans | Business purpose residential loans, held-for-sale, at fair value
Assets
Loans, held-for-sale		331,565	28,460
Loans, held-for-investment		3,175,178	112,798
Fair Value | Residential Loans | Multifamily loans
Assets
Loans, held-for-investment		$ 4,408,524	$ 2,144,598
[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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , 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, 2019	Dec. 31, 2018
Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 333	$ 654
Residential loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	6,990	8,380
Business purpose residential loans, held-for-sale, at fair value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	4,020	168
Multifamily loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 1,430	2,130
Real estate securities | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Dealer marks of securities	83.00%
Percentage of carrying value for which dealer quotes were received on securities	94.00%
Percentage difference of internal valuation than dealer marks	1.00%
Servicer advance investments
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 70	396
Excess MSRs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	8	$ 25
Shared Home Appreciation Options
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 43
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, 2019	Dec. 31, 2018
Assets
Trading securities		$ 860,540	$ 1,118,612
Available-for-sale securities		239,334	333,882
Derivative assets	[1]	35,701	35,789
Pledged collateral		32,945	42,433
Liabilities
Contingent consideration		28,484	0
Derivative liabilities	[1]	163,424	84,855
Fair Value, Measurements, Recurring
Assets
Business purpose residential loans		3,506,743	141,258
Multifamily loans		4,408,524	2,144,598
Trading securities		860,540	1,118,612
Available-for-sale securities		239,334	333,882
Servicer advance investments		169,204	300,468
MSR Fair Value		42,224	60,281
Excess MSRs		31,814	27,312
Shared home appreciation options		45,085
Derivative assets		35,701	35,789
Pledged collateral		32,945	42,433
FHLBC stock		43,393	43,393
Guarantee asset		1,686	2,618
Liabilities
Contingent consideration		28,484
Derivative liabilities		163,424	84,855
ABS issued		10,515,475	5,410,073
Fair Value, Measurements, Recurring | Residential Loans
Assets
Residential loans		7,714,745	7,254,631
Fair Value, Measurements, Recurring | Level 1
Assets
Business purpose residential loans		0	0
Multifamily loans		0	0
Trading securities		0	0
Available-for-sale securities		0	0
Servicer advance investments		0	0
MSR Fair Value		0	0
Excess MSRs		0	0
Shared home appreciation options		0
Derivative assets		6,531	4,665
Pledged collateral		32,945	42,433
FHLBC stock		0	0
Guarantee asset		0	0
Liabilities
Contingent consideration		0
Derivative liabilities		13,368	13,215
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	0
Multifamily loans		0	0
Trading securities		0	0
Available-for-sale securities		0	0
Servicer advance investments		0	0
MSR Fair Value		0	0
Excess MSRs		0	0
Shared home appreciation options		0
Derivative assets		19,020	28,211
Pledged collateral		0	0
FHLBC stock		43,393	43,393
Guarantee asset		0	0
Liabilities
Contingent consideration		0
Derivative liabilities		148,766	70,908
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		3,506,743	141,258
Multifamily loans		4,408,524	2,144,598
Trading securities		860,540	1,118,612
Available-for-sale securities		239,334	333,882
Servicer advance investments		169,204	300,468
MSR Fair Value		42,224	60,281
Excess MSRs		31,814	27,312
Shared home appreciation options		45,085
Derivative assets		10,150	2,913
Pledged collateral		0	0
FHLBC stock		0	0
Guarantee asset		1,686	2,618
Liabilities
Contingent consideration		28,484
Derivative liabilities		1,290	732
ABS issued		10,515,475	5,410,073
Fair Value, Measurements, Recurring | Level 3 | Residential Loans
Assets
Residential loans		$ 7,714,745	$ 7,254,631
[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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , 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, 2019	Dec. 31, 2018
Contingent Consideration
Liabilities
Beginning balance	$ 0
Acquisitions	25,267
Principal paydowns	0
Gains (losses) in net income, net	3,217
Other settlements, net	0
Ending Balance	28,484	$ 0
ABS issued
Liabilities
Beginning balance	5,410,073	1,164,585
Acquisitions	6,098,462	4,613,168
Principal paydowns	(1,112,437)	(459,173)
Gains (losses) in net income, net	119,377	91,493
Other settlements, net	0	0
Ending Balance	10,515,475	5,410,073
Residential Loans
Assets
Beginning balance	7,254,631	5,114,317
Acquisitions	7,092,866	8,338,724
Originations	0
Sales	(5,141,886)	(5,425,168)
Principal paydowns	(1,609,220)	(814,122)
Gains (losses) in net income, net	119,132	44,627
Unrealized losses in OCI, net	0	0
Other settlements, net	(778)	(3,747)
Ending Balance	7,714,745	7,254,631
Business purpose residential loans
Assets
Beginning balance	141,258	0
Acquisitions	2,639,615	167,777
Originations	1,015,436
Sales	(76,909)	0
Principal paydowns	(213,655)	(27,382)
Gains (losses) in net income, net	7,423	863
Unrealized losses in OCI, net	0	0
Other settlements, net	(6,425)	0
Ending Balance	3,506,743	141,258
Multifamily loans
Assets
Beginning balance	2,144,598	0
Acquisitions	2,162,386	2,099,916
Originations	0
Sales	0	0
Principal paydowns	(28,543)	(1,873)
Gains (losses) in net income, net	130,083	46,555
Unrealized losses in OCI, net	0	0
Other settlements, net	0	0
Ending Balance	4,408,524	2,144,598
Trading securities
Assets
Beginning balance	1,118,612	968,844
Acquisitions	332,593	653,739
Originations	0
Sales	(597,122)	(438,304)
Principal paydowns	(44,600)	(40,050)
Gains (losses) in net income, net	56,008	(8,436)
Unrealized losses in OCI, net	0	0
Other settlements, net	(4,951)	(17,181)
Ending Balance	860,540	1,118,612
AFS Securities
Assets
Beginning balance	333,882	507,666
Acquisitions	26,539	7,739
Originations	0
Sales	(110,069)	(143,644)
Principal paydowns	(39,704)	(44,446)
Gains (losses) in net income, net	24,580	41,051
Unrealized losses in OCI, net	4,106	(34,484)
Other settlements, net	0	0
Ending Balance	239,334	333,882
Servicer advance investments
Assets
Beginning balance	300,468	0
Acquisitions	69,610	395,813
Originations	0
Sales	0	0
Principal paydowns	(203,876)	(94,644)
Gains (losses) in net income, net	3,002	(701)
Unrealized losses in OCI, net	0	0
Other settlements, net	0	0
Ending Balance	169,204	300,468
MSRs
Assets
Beginning balance	60,281	63,598
Acquisitions	868	328
Originations	0
Sales	0	(1,077)
Principal paydowns	0	0
Gains (losses) in net income, net	(18,925)	(2,568)
Unrealized losses in OCI, net	0	0
Other settlements, net	0	0
Ending Balance	42,224	60,281
Excess MSRs
Assets
Beginning balance	27,312	0
Acquisitions	7,762	25,489
Originations	0
Sales	0	0
Principal paydowns	0	0
Gains (losses) in net income, net	(3,260)	1,823
Unrealized losses in OCI, net	0	0
Other settlements, net	0	0
Ending Balance	31,814	27,312
Guarantee Asset
Assets
Beginning balance	2,618	2,869
Acquisitions	0	0
Sales		0
Principal paydowns	0	0
Gains (losses) in net income, net	(932)	(251)
Unrealized losses in OCI, net		0
Other settlements, net	0	0
Ending Balance	1,686	2,618
Shared Home Appreciation Options
Assets
Beginning balance	0
Acquisitions	44,243
Originations	0
Sales	0
Principal paydowns	0
Gains (losses) in net income, net	842
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending Balance	45,085	0
Derivatives
Assets
Beginning balance	2,181	1,714
Acquisitions	0	0
Principal paydowns	0	0
Gains (losses) in net income, net	62,220	(1,214)
Other settlements, net	(55,541)	1,681
Ending Balance	$ 8,860	$ 2,181

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, 2019	Dec. 31, 2018	Dec. 31, 2017
Loan purchase and interest rate lock commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 liability	$ (1,290)	$ (732)	$ (3,706)
Contingent Consideration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 liability	(3,217)	0	0
ABS issued
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 liability	(130,421)	(71,468)	(29,187)
Residential loans, held-for-investment | 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	67,470	(17,757)	523
Residential loans, held-for-investment | 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	(10,062)	24,799	17,727
Residential loans, held-for-investment | Freddie Mac SLST
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	63,583	21,295	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	14,603	445	0
Single-family rental loans | CAFL
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(14,681)	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	130,083	46,555	0
Trading securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	18,865	(12,256)	28,612
AFS Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	0	(89)	(1,011)
Servicer advance investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	3,001	(702)	0
MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(11,957)	1,942	1,277
Excess MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(3,260)	1,824	0
Shared home appreciation options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	842	0	0
Loan purchase and interest rate lock commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	10,190	2,913	3,243
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	0	2,177
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	$ (932)	$ (251)	$ (1,223)

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 - REO - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Other assets	$ 4,051	$ 2,225
Gain (loss) on assets measured at fair value on a non-recurring basis	(1,363)	(131)
Level 1
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Other assets	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Other assets	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Other assets	$ 4,051	$ 2,225

Fair Value of Financial Instr_9

Fair Value of Financial Instruments - Market Valuation Adjustments, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MSR income, net	$ 3,521	$ 7,076	$ 7,860
Gain on re-measurement of 5 Arches investment	2,441	0
Total Market Valuation Gains, Net	97,006	24,069	51,484
Mortgage Banking Activities, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	69,326	57,000	51,844
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	3,267	23,144	31,493
Mortgage Banking Activities, Net | Residential loan purchase and forward sale commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	60,260	(1,336)	37,880
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	15,043	375	0
Mortgage Banking Activities, Net | Single-family rental loan purchase and interest rate lock commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	1,961	78	0
Mortgage Banking Activities, Net | Residential bridge loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	4,518	0	0
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	(15,723)	34,739	(17,529)
Investment Fair Value Changes, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	35,500	(25,689)	10,374
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	(127,169)	9,740	(12,842)
Investment Fair Value Changes, Net | Residential loans held-for-investment at Redwood
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	58,891	(29,573)	(5,765)
Investment Fair Value Changes, Net | Single-family rental loans held-for-investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	272	0	0
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	(2,139)	(29)	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	56,046	(8,055)	39,526
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	0	300
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	3,001	(701)	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	(3,260)	1,823	0
Investment Fair Value Changes, Net | Shared home appreciation options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	842	0	0
Investment Fair Value Changes, Net | REO
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(1,045)	0	0
Investment Fair Value Changes, Net | Net investments in Legacy Sequoia entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(1,545)	(1,016)	(8,027)
Investment Fair Value Changes, Net | Net investments in Sequoia Choice entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	6,947	443	(323)
Investment Fair Value Changes, Net | Net investments in Freddie Mac SLST entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	27,206	1,271	0
Investment Fair Value Changes, Net | Net investments in Freddie Mac K-Series entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	21,430	931	0
Investment Fair Value Changes, Net | Net investments in CAFL entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(3,636)	0	0
Investment Fair Value Changes, Net | Risk-sharing and other investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(341)	(434)	(1,484)
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	0	(89)	(1,011)
Other Income
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MSR income, net	(7,820)	(7,242)	(10,734)
Gain on re-measurement of 5 Arches investment	2,441	0	0
Other Income | Risk management derivatives, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MSR income, net	8,595	(4,734)	(568)
Other Income | MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MSR income, net	$ (18,856)	$ (2,508)	$ (10,166)

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	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2019USD ($)$ / loan	Dec. 31, 2018USD ($)
Liabilities
Contingent consideration		$ 28,484	$ 0
ABS Issued Securities
Liabilities
ABS issued		$ 2,439,663
ABS Issued Securities | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement inputs		0.17
ABS Issued Securities | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement inputs		0.43
ABS Issued Securities | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement inputs		0.26
ABS Issued Securities | Discount rate | Minimum
Liabilities
ABS issued, measurement inputs		0.03
ABS Issued Securities | Discount rate | Maximum
Liabilities
ABS issued, measurement inputs		0.30
ABS Issued Securities | Discount rate | Weighted Average
Liabilities
ABS issued, measurement inputs		0.04
ABS Issued Securities | Default rate | Minimum
Liabilities
ABS issued, measurement inputs		0
ABS Issued Securities | Default rate | Maximum
Liabilities
ABS issued, measurement inputs		0.07
ABS Issued Securities | Default rate | Weighted Average
Liabilities
ABS issued, measurement inputs		0
ABS Issued Securities | Loss severity | Minimum
Liabilities
ABS issued, measurement inputs		0
ABS Issued Securities | Loss severity | Maximum
Liabilities
ABS issued, measurement inputs		0.65
ABS Issued Securities | Loss severity | Weighted Average
Liabilities
ABS issued, measurement inputs		0.01
Freddie Mac SLST
Liabilities
ABS issued		$ 1,918,322
Freddie Mac SLST | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement inputs		0.06
Freddie Mac SLST | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement inputs		0.06
Freddie Mac SLST | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement inputs		0.06
Freddie Mac SLST | Discount rate | Minimum
Liabilities
ABS issued, measurement inputs		0.03
Freddie Mac SLST | Discount rate | Maximum
Liabilities
ABS issued, measurement inputs		0.13
Freddie Mac SLST | Discount rate | Weighted Average
Liabilities
ABS issued, measurement inputs		0.03
Freddie Mac SLST | Default rate | Minimum
Liabilities
ABS issued, measurement inputs		0.17
Freddie Mac SLST | Default rate | Maximum
Liabilities
ABS issued, measurement inputs		0.18
Freddie Mac SLST | Default rate | Weighted Average
Liabilities
ABS issued, measurement inputs		0.17
Freddie Mac SLST | Loss severity | Minimum
Liabilities
ABS issued, measurement inputs		0.30
Freddie Mac SLST | Loss severity | Maximum
Liabilities
ABS issued, measurement inputs		0.30
Freddie Mac SLST | Loss severity | Weighted Average
Liabilities
ABS issued, measurement inputs		0.30
Freddie Mac K-Series
Liabilities
ABS issued		$ 4,156,239
Freddie Mac K-Series | Discount rate | Minimum
Liabilities
ABS issued, measurement inputs		0.01
Freddie Mac K-Series | Discount rate | Maximum
Liabilities
ABS issued, measurement inputs		0.09
Freddie Mac K-Series | Discount rate | Weighted Average
Liabilities
ABS issued, measurement inputs		0.03
Freddie Mac K-Series | Non-IO prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement inputs		0
Freddie Mac K-Series | Non-IO prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement inputs		0
Freddie Mac K-Series | Non-IO prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement inputs		0
Freddie Mac K-Series | IO prepayment rate (annual CPY/CPP) | Minimum
Liabilities
ABS issued, measurement inputs		0
Freddie Mac K-Series | IO prepayment rate (annual CPY/CPP) | Maximum
Liabilities
ABS issued, measurement inputs		1
Freddie Mac K-Series | IO prepayment rate (annual CPY/CPP) | Weighted Average
Liabilities
ABS issued, measurement inputs		0.94
CAFL
Liabilities
ABS issued		$ 2,001,251
CAFL | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement inputs		0
CAFL | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement inputs		0.05
CAFL | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement inputs		0
CAFL | Discount rate | Minimum
Liabilities
ABS issued, measurement inputs		0.02
CAFL | Discount rate | Maximum
Liabilities
ABS issued, measurement inputs		0.30
CAFL | Discount rate | Weighted Average
Liabilities
ABS issued, measurement inputs		0.04
Contingent Consideration
Liabilities
Contingent consideration		$ 28,484
Contingent Consideration | Discount rate | Minimum
Liabilities
Contingent consideration, measurement inputs | $ / loan		0.23
Contingent Consideration | Discount rate | Maximum
Liabilities
Contingent consideration, measurement inputs | $ / loan		0.23
Contingent Consideration | Discount rate | Weighted Average
Liabilities
Contingent consideration, measurement inputs | $ / loan		0.23
Contingent Consideration | Probability of outcomes | Minimum
Liabilities
Contingent consideration, measurement inputs | $ / loan		1
Contingent Consideration | Probability of outcomes | Maximum
Liabilities
Contingent consideration, measurement inputs | $ / loan		1
Contingent Consideration | Probability of outcomes | Weighted Average
Liabilities
Contingent consideration, measurement inputs | $ / loan		1
Jumbo fixed rate loans
Assets
Residential loans, at fair value		$ 2,113,977
Jumbo fixed rate loans | Prepayment rate (annual CPR) | Minimum
Assets
Residential loans, measurement inputs		0.20
Jumbo fixed rate loans | Prepayment rate (annual CPR) | Maximum
Assets
Residential loans, measurement inputs		0.20
Jumbo fixed rate loans | Prepayment rate (annual CPR) | Weighted Average
Assets
Residential loans, measurement inputs		0.20
Jumbo fixed rate loans | Whole loan spread to TBA price | Minimum
Assets
Residential loans, measurement inputs | $ / loan		0.53
Jumbo fixed rate loans | Whole loan spread to TBA price | Maximum
Assets
Residential loans, measurement inputs | $ / loan		1.63
Jumbo fixed rate loans | Whole loan spread to TBA price | Weighted Average
Assets
Residential loans, measurement inputs | $ / loan		1.62
Jumbo fixed rate loans | Whole loan spread to swap rate | Minimum
Assets
Residential loans, measurement inputs		0.0095
Jumbo fixed rate loans | Whole loan spread to swap rate | Maximum
Assets
Residential loans, measurement inputs		0.0375
Jumbo fixed rate loans | Whole loan spread to swap rate | Weighted Average
Assets
Residential loans, measurement inputs		0.0170
Jumbo hybrid loans
Assets
Residential loans, at fair value		$ 326,336
Jumbo hybrid loans | Prepayment rate (annual CPR) | Minimum
Assets
Residential loans, measurement inputs		0.15
Jumbo hybrid loans | Prepayment rate (annual CPR) | Maximum
Assets
Residential loans, measurement inputs		0.15
Jumbo hybrid loans | Prepayment rate (annual CPR) | Weighted Average
Assets
Residential loans, measurement inputs		0.15
Jumbo hybrid loans | Whole loan spread to swap rate | Minimum
Assets
Residential loans, measurement inputs		0.0080
Jumbo hybrid loans | Whole loan spread to swap rate | Maximum
Assets
Residential loans, measurement inputs		0.0345
Jumbo hybrid loans | Whole loan spread to swap rate | Weighted Average
Assets
Residential loans, measurement inputs		0.0134
Jumbo loans committed to sell
Assets
Residential loans, at fair value		$ 207,864
Jumbo loans committed to sell | Whole loan committed sales price | Minimum
Assets
Residential loans, measurement inputs | $ / loan		101.85
Jumbo loans committed to sell | Whole loan committed sales price | Maximum
Assets
Residential loans, measurement inputs | $ / loan		102.96
Jumbo loans committed to sell | Whole loan committed sales price | Weighted Average
Assets
Residential loans, measurement inputs | $ / loan		102.41
Business purpose residential loans | Senior Credit Spread | Minimum
Assets
Residential loans, measurement inputs		0.0100
Business purpose residential loans | Senior Credit Spread | Maximum
Assets
Residential loans, measurement inputs		0.0105
Business purpose residential loans | Senior Credit Spread | Weighted Average
Assets
Residential loans, measurement inputs		0.0103
Business purpose residential loans | Subordinate Credit Spread | Minimum
Assets
Residential loans, measurement inputs		0.0135
Business purpose residential loans | Subordinate Credit Spread | Maximum
Assets
Residential loans, measurement inputs		0.1400
Business purpose residential loans | Subordinate Credit Spread | Weighted Average
Assets
Residential loans, measurement inputs		0.0299
Legacy Sequoia
Assets
Residential loans, at fair value		$ 407,890
Sequoia Choice
Assets
Residential loans, at fair value		2,291,463
Liabilities
Fair value of securities owned		264,000
Freddie Mac SLST
Assets
Residential loans, at fair value		2,367,215
Liabilities
Fair value of securities owned		449,000
Single-family rental loans
Assets
Residential loans, at fair value		$ 569,185
Single-family rental loans | Prepayment rate (annual CPR) | Minimum
Assets
Residential loans, measurement inputs		0.05
Single-family rental loans | Prepayment rate (annual CPR) | Maximum
Assets
Residential loans, measurement inputs		0.05
Single-family rental loans | Prepayment rate (annual CPR) | Weighted Average
Assets
Residential loans, measurement inputs		0.05
Single-family rental loans | Senior credit support | Minimum
Assets
Servicing assets, measurement inputs		0.33
Single-family rental loans | Senior credit support | Maximum
Assets
Servicing assets, measurement inputs		0.40
Single-family rental loans | Senior credit support | Weighted Average
Assets
Servicing assets, measurement inputs		0.34
Single-family rental loans | IO discount rate | Minimum
Assets
Residential loans, measurement inputs		0.06
Single-family rental loans | IO discount rate | Maximum
Assets
Residential loans, measurement inputs		0.09
Single-family rental loans | IO discount rate | Weighted Average
Assets
Residential loans, measurement inputs		0.08
CAFL
Assets
Residential loans, at fair value		$ 2,192,552
Liabilities
Fair value of securities owned		191,000
Residential bridge loans held-for-investment
Assets
Residential loans, at fair value		$ 745,006
Residential bridge loans held-for-investment | Discount rate | Minimum
Assets
Residential loans, measurement inputs		0.06
Residential bridge loans held-for-investment | Discount rate | Maximum
Assets
Residential loans, measurement inputs		0.10
Residential bridge loans held-for-investment | Discount rate | Weighted Average
Assets
Residential loans, measurement inputs		0.07
Freddie Mac K-Series
Assets
Residential loans, at fair value		$ 4,408,524
Liabilities
Fair value of securities owned		252,000
Trading and AFS securities
Assets
Trading and AFS securities		$ 1,099,874
Trading and AFS securities | Prepayment rate (annual CPR) | Minimum
Assets
Trading and AFS securities, measurement inputs		0.05
Trading and AFS securities | Prepayment rate (annual CPR) | Maximum
Assets
Trading and AFS securities, measurement inputs		0.50
Trading and AFS securities | Prepayment rate (annual CPR) | Weighted Average
Assets
Trading and AFS securities, measurement inputs		0.16
Trading and AFS securities | Discount rate | Minimum
Assets
Trading and AFS securities, measurement inputs		0.03
Trading and AFS securities | Discount rate | Maximum
Assets
Trading and AFS securities, measurement inputs		0.40
Trading and AFS securities | Discount rate | Weighted Average
Assets
Trading and AFS securities, measurement inputs		0.05
Trading and AFS securities | Default rate | Minimum
Assets
Trading and AFS securities, measurement inputs		0
Trading and AFS securities | Default rate | Maximum
Assets
Trading and AFS securities, measurement inputs		0.07
Trading and AFS securities | Default rate | Weighted Average
Assets
Trading and AFS securities, measurement inputs		0.01
Trading and AFS securities | Loss severity | Minimum
Assets
Trading and AFS securities, measurement inputs		0
Trading and AFS securities | Loss severity | Maximum
Assets
Trading and AFS securities, measurement inputs		0.30
Trading and AFS securities | Loss severity | Weighted Average
Assets
Trading and AFS securities, measurement inputs		0.05
Servicer advance investments
Assets
Servicing assets		$ 169,204
Servicer advance investments | Minimum
Assets
Expected remaining life	2 years
Servicer advance investments | Maximum
Assets
Expected remaining life	2 years
Servicer advance investments | Weighted Average
Assets
Expected remaining life	2 years
Servicer advance investments | Prepayment rate (annual CPR) | Minimum
Assets
Servicing assets, measurement inputs		0.08
Servicer advance investments | Prepayment rate (annual CPR) | Maximum
Assets
Servicing assets, measurement inputs		0.15
Servicer advance investments | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing assets, measurement inputs		0.14
Servicer advance investments | Discount rate | Minimum
Assets
Servicing assets, measurement inputs		0.05
Servicer advance investments | Discount rate | Maximum
Assets
Servicing assets, measurement inputs		0.05
Servicer advance investments | Discount rate | Weighted Average
Assets
Servicing assets, measurement inputs		0.05
MSRs
Assets
Servicing assets		$ 42,224
MSRs | Prepayment rate (annual CPR) | Minimum
Assets
Servicing assets, measurement inputs		0.05
MSRs | Prepayment rate (annual CPR) | Maximum
Assets
Servicing assets, measurement inputs		0.44
MSRs | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing assets, measurement inputs		0.11
MSRs | Discount rate | Minimum
Assets
Servicing assets, measurement inputs		0.11
MSRs | Discount rate | Maximum
Assets
Servicing assets, measurement inputs		0.12
MSRs | Discount rate | Weighted Average
Assets
Servicing assets, measurement inputs		0.11
MSRs | Per loan annual cost to service | Minimum
Assets
Servicing assets, measurement inputs | $ / loan		82
MSRs | Per loan annual cost to service | Maximum
Assets
Servicing assets, measurement inputs | $ / loan		82
MSRs | Per loan annual cost to service | Weighted Average
Assets
Servicing assets, measurement inputs | $ / loan		82
Excess MSRs
Assets
Servicing assets		$ 31,814
Excess MSRs | Prepayment rate (annual CPR) | Minimum
Assets
Servicing assets, measurement inputs		0.09
Excess MSRs | Prepayment rate (annual CPR) | Maximum
Assets
Servicing assets, measurement inputs		0.14
Excess MSRs | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing assets, measurement inputs		0.11
Excess MSRs | Discount rate | Minimum
Assets
Servicing assets, measurement inputs		0.11
Excess MSRs | Discount rate | Maximum
Assets
Servicing assets, measurement inputs		0.16
Excess MSRs | Discount rate | Weighted Average
Assets
Servicing assets, measurement inputs		0.14
Excess MSRs | Excess mortgage servicing amount | Minimum
Assets
Servicing assets, measurement inputs		0.0008
Excess MSRs | Excess mortgage servicing amount | Maximum
Assets
Servicing assets, measurement inputs		0.0018
Excess MSRs | Excess mortgage servicing amount | Weighted Average
Assets
Servicing assets, measurement inputs		0.0013
Shared Home Appreciation Options
Assets
Shared home appreciation options		$ 45,085
Shared Home Appreciation Options | Prepayment rate (annual CPR) | Minimum
Assets
Shared home appreciation options, measurement inputs		0.10
Shared Home Appreciation Options | Prepayment rate (annual CPR) | Maximum
Assets
Shared home appreciation options, measurement inputs		0.30
Shared Home Appreciation Options | Prepayment rate (annual CPR) | Weighted Average
Assets
Shared home appreciation options, measurement inputs		0.23
Shared Home Appreciation Options | Discount rate | Minimum
Assets
Shared home appreciation options, measurement inputs		0.11
Shared Home Appreciation Options | Discount rate | Maximum
Assets
Shared home appreciation options, measurement inputs		0.11
Shared Home Appreciation Options | Discount rate | Weighted Average
Assets
Shared home appreciation options, measurement inputs		0.11
Shared Home Appreciation Options | Home price appreciation | Minimum
Assets
Shared home appreciation options, measurement inputs		0.03
Shared Home Appreciation Options | Home price appreciation | Maximum
Assets
Shared home appreciation options, measurement inputs		0.03
Shared Home Appreciation Options | Home price appreciation | Weighted Average
Assets
Shared home appreciation options, measurement inputs		0.03
Guarantee asset
Assets
Guarantee asset		$ 1,686
Guarantee asset | Prepayment rate (annual CPR) | Minimum
Assets
Guarantee asset, measurement inputs		0.15
Guarantee asset | Prepayment rate (annual CPR) | Maximum
Assets
Guarantee asset, measurement inputs		0.15
Guarantee asset | Prepayment rate (annual CPR) | Weighted Average
Assets
Guarantee asset, measurement inputs		0.15
Guarantee asset | Discount rate | Minimum
Assets
Guarantee asset, measurement inputs		0.11
Guarantee asset | Discount rate | Maximum
Assets
Guarantee asset, measurement inputs		0.11
Guarantee asset | Discount rate | Weighted Average
Assets
Guarantee asset, measurement inputs		0.11
REO
Assets
REO		$ 4,051
REO | Loss severity | Minimum
Assets
REO, measurement inputs		0.17
REO | Loss severity | Maximum
Assets
REO, measurement inputs		0.55
REO | Loss severity | Weighted Average
Assets
REO, measurement inputs		0.26
Loan purchase and interest rate lock commitments
Assets
Loan purchase commitments, net		$ 8,419
Loan purchase and interest rate lock commitments | Prepayment rate (annual CPR) | Minimum
Assets
Residential loans, measurement inputs		0.15
Loan purchase and interest rate lock commitments | Prepayment rate (annual CPR) | Maximum
Assets
Residential loans, measurement inputs		0.20
Loan purchase and interest rate lock commitments | Prepayment rate (annual CPR) | Weighted Average
Assets
Residential loans, measurement inputs		0.20
Loan purchase and interest rate lock commitments | Whole loan spread to TBA price | Minimum
Assets
Residential loans, measurement inputs | $ / loan		0.53
Loan purchase and interest rate lock commitments | Whole loan spread to TBA price | Maximum
Assets
Residential loans, measurement inputs | $ / loan		1.63
Loan purchase and interest rate lock commitments | Whole loan spread to TBA price | Weighted Average
Assets
Residential loans, measurement inputs | $ / loan		1.62
Loan purchase and interest rate lock commitments | Mortgage servicing income | Minimum
Assets
Loan purchase commitments, net, measurement inputs		0.0008
Loan purchase and interest rate lock commitments | Mortgage servicing income | Maximum
Assets
Loan purchase commitments, net, measurement inputs		0.0013
Loan purchase and interest rate lock commitments | Mortgage servicing income | Weighted Average
Assets
Loan purchase commitments, net, measurement inputs		0.001
Loan purchase and interest rate lock commitments | MSR multiple | Minimum
Assets
Residential loans, measurement inputs		0.7
Loan purchase and interest rate lock commitments | MSR multiple | Maximum
Assets
Residential loans, measurement inputs		4.3
Loan purchase and interest rate lock commitments | MSR multiple | Weighted Average
Assets
Residential loans, measurement inputs		2.8
Loan purchase and interest rate lock commitments | Pull-through rate | Minimum
Assets
Residential loans, measurement inputs		0.08
Loan purchase and interest rate lock commitments | Pull-through rate | Maximum
Assets
Residential loans, measurement inputs		1
Loan purchase and interest rate lock commitments | Pull-through rate | Weighted Average
Assets
Residential loans, measurement inputs		0.75
Loan purchase and interest rate lock commitments | Whole loan spread to swap - fixed | Minimum
Assets
Loan purchase commitments, net, measurement inputs		0.0115
Loan purchase and interest rate lock commitments | Whole loan spread to swap - fixed | Maximum
Assets
Loan purchase commitments, net, measurement inputs		0.0375
Loan purchase and interest rate lock commitments | Whole loan spread to swap - fixed | Weighted Average
Assets
Loan purchase commitments, net, measurement inputs		0.0253
Loan purchase and interest rate lock commitments | Whole loan spread to swap rate - hybrid | Minimum
Assets
Loan purchase commitments, net, measurement inputs		0.0115
Loan purchase and interest rate lock commitments | Whole loan spread to swap rate - hybrid | Maximum
Assets
Loan purchase commitments, net, measurement inputs		0.0155
Loan purchase and interest rate lock commitments | Whole loan spread to swap rate - hybrid | Weighted Average
Assets
Loan purchase commitments, net, measurement inputs		0.0131
Single-family loan purchase commitments
Assets
Loan purchase commitments, net		$ 440
Single-family loan purchase commitments | Prepayment rate (annual CPR) | Minimum
Assets
Residential loans, measurement inputs		0.05
Single-family loan purchase commitments | Prepayment rate (annual CPR) | Maximum
Assets
Residential loans, measurement inputs		0.05
Single-family loan purchase commitments | Prepayment rate (annual CPR) | Weighted Average
Assets
Residential loans, measurement inputs		0.05
Single-family loan purchase commitments | Senior Credit Spread | Minimum
Assets
Residential loans, measurement inputs		0.01
Single-family loan purchase commitments | Senior Credit Spread | Maximum
Assets
Residential loans, measurement inputs		0.01
Single-family loan purchase commitments | Senior Credit Spread | Weighted Average
Assets
Residential loans, measurement inputs		0.01
Single-family loan purchase commitments | Subordinate Credit Spread | Minimum
Assets
Residential loans, measurement inputs		0.01
Single-family loan purchase commitments | Subordinate Credit Spread | Maximum
Assets
Residential loans, measurement inputs		1.40
Single-family loan purchase commitments | Subordinate Credit Spread | Weighted Average
Assets
Residential loans, measurement inputs		0.03
Single-family loan purchase commitments | Senior credit support | Minimum
Assets
Residential loans, measurement inputs		0.33
Single-family loan purchase commitments | Senior credit support | Maximum
Assets
Residential loans, measurement inputs		0.33
Single-family loan purchase commitments | Senior credit support | Weighted Average
Assets
Residential loans, measurement inputs		0.33
Single-family loan purchase commitments | Pull-through rate | Minimum
Assets
Residential loans, measurement inputs		1
Single-family loan purchase commitments | Pull-through rate | Maximum
Assets
Residential loans, measurement inputs		1
Single-family loan purchase commitments | Pull-through rate | Weighted Average
Assets
Residential loans, measurement inputs		1
Single-family loan purchase commitments | IO discount rate | Minimum
Assets
Residential loans, measurement inputs		0.06
Single-family loan purchase commitments | IO discount rate | Maximum
Assets
Residential loans, measurement inputs		0.07
Single-family loan purchase commitments | IO discount rate | Weighted Average
Assets
Residential loans, measurement inputs		0.07

Residential Loans - Summary of

Residential Loans - Summary of Classifications and Carrying Value of Residential Loans (Details) - USD ($) $ in Thousands		Dec. 31, 2019	Dec. 31, 2018
Residential loans, held-for-sale, at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment	[1]	$ 536,385	$ 1,048,801
Legacy Sequoia | Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		408,000	520,000
Sequoia Choice | Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		2,290,000	2,080,000
Freddie Mac SLST | Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		2,370,000	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		7,714,850	7,254,742
Residential Loans | Residential loans, held-for-sale, at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		536,385	1,048,801
Residential Loans | Residential loans, held-for-investment | Jumbo Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		7,178,465	6,205,941
Residential Loans | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		407,890	519,958
Residential Loans | Legacy Sequoia | Residential loans, held-for-sale, at 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 | Jumbo Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		407,890	519,958
Residential Loans | Sequoia Choice
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		2,291,463	2,079,382
Residential Loans | Sequoia Choice | Residential loans, held-for-sale, at 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 | Jumbo Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		2,291,463	2,079,382
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		2,367,215	1,222,669
Residential Loans | Freddie Mac SLST | Residential loans, held-for-sale, at 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 | Jumbo Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		2,367,215	1,222,669
Redwood | Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		2,110,000	2,380,000
Redwood | Residential Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		2,648,282	3,432,733
Redwood | Residential Loans | Residential loans, held-for-sale, at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		536,385	1,048,801
Redwood | Residential Loans | Residential loans, held-for-investment | Jumbo Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan market valuation adjustment		$ 2,111,897	$ 2,383,932
[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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , respectively. See Note 4 for further discussion.

Residential Loans - Additional

Residential Loans - Additional Information (Details)	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan			669	1,484
Total Principal	$ 524,928,000	$ 1,034,284,000	$ 524,928,000	$ 1,034,284,000
Transfers from loans held-for-sale to loans held-for-investment			1,801,560,000	2,062,809,000	$ 1,245,430,000
Transfers from loans held-for-investment to loans held-for-sale			22,808,000	15,717,000	$ 98,854,000
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		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	7,714,850,000	7,254,742,000	7,714,850,000	7,254,742,000
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	407,890,000	519,958,000	407,890,000	519,958,000
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	2,291,463,000	2,079,382,000	2,291,463,000	2,079,382,000
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	$ 2,367,215,000	1,222,669,000	$ 2,367,215,000	1,222,669,000
Redwood | 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	4.14%		4.14%
Redwood | 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	$ 2,648,282,000	$ 3,432,733,000	$ 2,648,282,000	3,432,733,000
Residential Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	669	1,484
Total Principal	$ 525,000,000	$ 1,030,000,000	525,000,000	1,030,000,000
Loan market valuation adjustment	$ 536,000,000	$ 1,050,000,000	$ 536,000,000	$ 1,050,000,000
Number of loans in foreclosure | loan	0	0	0	0
Principal value			$ 5,730,000,000	$ 7,070,000,000
Principal balance of loans sold during period			6,070,000,000	7,110,000,000
Valuation adjustments			3,000,000	23,000,000
Loan pledged as collateral	$ 201,949,000	$ 935,132,000	201,949,000	$ 935,132,000
Loans held as assets amount in foreclosure	$ 2,000,000		$ 2,000,000
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	1	1	1
Aggregate fair value, delinquent or in foreclosure	$ 600,000	$ 600,000	$ 600,000	$ 600,000
Loans held as assets, 90 days or more past due	$ 700,000	$ 700,000	700,000	700,000
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
Total Principal		$ 100,000		100,000
Loan market valuation adjustment		100,000		100,000
Loans held as assets, 90 days or more past due		$ 0		$ 0
Number of loans in foreclosure | loan		0		0
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		0
Residential loans, held-for-investment | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Valuation adjustments			5,000,000
Residential loans, held-for-investment | Sequoia Choice
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Transfers from loans held-for-sale to loans held-for-investment			1,080,000,000
Residential loans, held-for-investment | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2,198	2,641
Total Principal	$ 425,000,000	$ 545,000,000	425,000,000	$ 545,000,000
Loan market valuation adjustment	408,000,000	520,000,000	408,000,000	520,000,000
Loans held as assets, 90 days or more past due	$ 10,000,000	14,000,000	$ 10,000,000	14,000,000
FICO credit score	727		727
Loan to value ratio	65.00%		65.00%
Loans held as assets amount in foreclosure	$ 4,000,000	$ 5,000,000	$ 4,000,000	5,000,000
Valuation adjustments				37,000,000
Residential loans, held-for-investment | Sequoia Choice
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	3,156	2,800
Total Principal	$ 2,240,000,000	$ 2,040,000,000	2,240,000,000	2,040,000,000
Loan market valuation adjustment	$ 2,290,000,000	$ 2,080,000,000	$ 2,290,000,000	$ 2,080,000,000
Number of loans in foreclosure | loan	3	0	3	0
FICO credit score	744		744
Loan to value ratio	75.00%		75.00%
Loans held as assets amount in foreclosure	$ 2,000,000		$ 2,000,000
Valuation adjustments			(15,000,000)	$ (13,000,000)
Residential loans, held-for-investment | 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
Residential loans, held-for-investment | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	14,502	7,900
Total Principal	$ 2,430,000,000	$ 1,310,000,000	2,430,000,000	1,310,000,000
Loan market valuation adjustment	$ 2,370,000,000	$ 1,220,000,000	$ 2,370,000,000	$ 1,220,000,000
Number of loans in foreclosure | loan	208	0	208	0
FICO credit score	600		600
Loan to value ratio	73.00%		73.00%
Loans held as assets amount in foreclosure	$ 33,000,000		$ 33,000,000
Valuation adjustments			64,000,000	$ 21,000,000
Residential loans, held-for-investment | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2,940			3,296
Total Principal	$ 2,050,000,000	$ 2,390,000,000	2,050,000,000	$ 2,390,000,000
Loan market valuation adjustment	$ 2,110,000,000	$ 2,380,000,000	$ 2,110,000,000	$ 2,380,000,000
Number of loans in foreclosure | loan	0	0	0	0
Valuation adjustments			$ 59,000,000	$ (30,000,000)
Transfers from loans held-for-sale to loans held-for-investment			69,000,000	286,000,000
Transfers from loans held-for-investment to loans held-for-sale			$ 23,000,000	16,000,000
FICO credit score	768		768
Loan to value ratio	66.00%		66.00%
Percentage of loans with fixed interest rate	89.00%		89.00%
Residential loans, held-for-investment | Redwood | 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%		96.00%
Residential loans, held-for-investment | Redwood | 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%		4.00%
Residential loans, held-for-investment | Redwood | 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	4.16%		4.16%
Residential loans, held-for-investment | 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	$ 7,178,465,000	$ 6,205,941,000	$ 7,178,465,000	6,205,941,000
Residential loans, held-for-investment | 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	407,890,000	519,958,000	407,890,000	519,958,000
Residential loans, held-for-investment | 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	2,291,463,000	2,079,382,000	2,291,463,000	2,079,382,000
Residential loans, held-for-investment | 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	2,367,215,000	1,222,669,000	2,367,215,000	1,222,669,000
Residential loans, held-for-investment | Jumbo Loans | Redwood | 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	$ 2,111,897,000	$ 2,383,932,000	$ 2,111,897,000	$ 2,383,932,000
Residential loans, held-for-investment | Financing Receivables, Equal to Greater than 90 Days Past Due | Sequoia Choice
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans past due | loan	9	3	9	3
Loans held as assets, 90 days or more past due	$ 7,000,000	$ 2,000,000	$ 7,000,000	$ 2,000,000
Residential loans, held-for-investment | Financing Receivables, Equal to Greater than 90 Days Past Due | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans past due | loan	587	306	587	306
Loans held as assets, 90 days or more past due	$ 135,000,000	$ 51,000,000	$ 135,000,000	$ 51,000,000
Residential loans, held-for-investment | Financing Receivables, Equal to Greater than 90 Days Past Due | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Total Principal	$ 1,000,000	$ 1,000,000	$ 1,000,000	$ 1,000,000
Number of loans past due | loan	2	2	2	2
Loans held as assets, 90 days or more past due	$ 2,000,000		$ 2,000,000
MSRs
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Mortgage servicing rights	2,030,000,000		2,030,000,000
Residential Real Estate | Redwood | Held-for sale residential loans | FHLB Chicago
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Residential mortgage loans securing FHLB advances	$ 2,100,000,000		$ 2,100,000,000

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, 2019	Dec. 31, 2018
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
California
Concentration Risk [Line Items]
Concentration risk percentage	36.00%	40.00%
Washington
Concentration Risk [Line Items]
Concentration risk percentage	7.00%	10.00%
Texas
Concentration Risk [Line Items]
Concentration risk percentage	6.00%	6.00%
Colorado
Concentration Risk [Line Items]
Concentration risk percentage	6.00%
Florida
Concentration Risk [Line Items]
Concentration risk percentage	4.00%	4.00%
New Jersey
Concentration Risk [Line Items]
Concentration risk percentage	2.00%	2.00%
New York
Concentration Risk [Line Items]
Concentration risk percentage	1.00%	3.00%
Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	38.00%	35.00%
Legacy Sequoia
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
Legacy Sequoia | California
Concentration Risk [Line Items]
Concentration risk percentage	18.00%	19.00%
Legacy Sequoia | Washington
Concentration Risk [Line Items]
Concentration risk percentage	1.00%	1.00%
Legacy Sequoia | Texas
Concentration Risk [Line Items]
Concentration risk percentage	6.00%	6.00%
Legacy Sequoia | Colorado
Concentration Risk [Line Items]
Concentration risk percentage	3.00%
Legacy Sequoia | Florida
Concentration Risk [Line Items]
Concentration risk percentage	14.00%	13.00%
Legacy Sequoia | New Jersey
Concentration Risk [Line Items]
Concentration risk percentage	4.00%	4.00%
Legacy Sequoia | New York
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	10.00%
Legacy Sequoia | Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	44.00%	47.00%
Sequoia Choice
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
Sequoia Choice | California
Concentration Risk [Line Items]
Concentration risk percentage	35.00%	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	9.00%	8.00%
Sequoia Choice | Colorado
Concentration Risk [Line Items]
Concentration risk percentage	4.00%
Sequoia Choice | Florida
Concentration Risk [Line Items]
Concentration risk percentage	5.00%	4.00%
Sequoia Choice | New Jersey
Concentration Risk [Line Items]
Concentration risk percentage	2.00%	1.00%
Sequoia Choice | New York
Concentration Risk [Line Items]
Concentration risk percentage	4.00%	5.00%
Sequoia Choice | Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	34.00%	36.00%
Freddie Mac SLST
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
Freddie Mac SLST | California
Concentration Risk [Line Items]
Concentration risk percentage	14.00%	12.00%
Freddie Mac SLST | Washington
Concentration Risk [Line Items]
Concentration risk percentage	2.00%	2.00%
Freddie Mac SLST | Texas
Concentration Risk [Line Items]
Concentration risk percentage	3.00%	3.00%
Freddie Mac SLST | Colorado
Concentration Risk [Line Items]
Concentration risk percentage	0.00%
Freddie Mac SLST | Florida
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	10.00%
Freddie Mac SLST | New Jersey
Concentration Risk [Line Items]
Concentration risk percentage	7.00%	7.00%
Freddie Mac SLST | New York
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	10.00%
Freddie Mac SLST | Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	54.00%	56.00%
Redwood
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
Redwood | California
Concentration Risk [Line Items]
Concentration risk percentage	45.00%	47.00%
Redwood | Washington
Concentration Risk [Line Items]
Concentration risk percentage	5.00%	5.00%
Redwood | Texas
Concentration Risk [Line Items]
Concentration risk percentage	8.00%	8.00%
Redwood | Colorado
Concentration Risk [Line Items]
Concentration risk percentage	4.00%
Redwood | Florida
Concentration Risk [Line Items]
Concentration risk percentage	5.00%	5.00%
Redwood | New Jersey
Concentration Risk [Line Items]
Concentration risk percentage	2.00%	1.00%
Redwood | New York
Concentration Risk [Line Items]
Concentration risk percentage	4.00%	3.00%
Redwood | Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	27.00%	31.00%

Residential Loans - Loan Produc

Residential Loans - Loan Product Type and Accompanying Loan Characteristics of Residential Loans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	669	1,484
Total Principal	$ 524,928	$ 1,034,284
30-89 Days DQ	1,650	559
90 Days DQ	747	$ 747
Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
90 Days DQ	$ 153,319
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, at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
90 Days DQ	$ 747
Residential 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	554	1,376
Total Principal	$ 433,045	$ 947,140
30-89 Days DQ	1,650	559
90 Days DQ	$ 747	747
Residential 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	3.20%
Residential 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	7.13%
Residential loans, held-for-sale, at fair value | 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	$ 250
Number of Loans | loan	2	6
Total Principal	$ 481	$ 1,180
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Residential loans, held-for-sale, at fair value | Fixed loans | $0 to $250 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.88%	4.38%
Residential loans, held-for-sale, at fair value | Fixed loans | $0 to $250 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	7.13%	5.75%
Residential loans, held-for-sale, at fair value | 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	$ 251
Loan Balance, maximum	$ 500	$ 500
Number of Loans | loan	13	188
Total Principal	$ 6,234	$ 88,204
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Residential loans, held-for-sale, at fair value | Fixed loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.63%	3.13%
Residential loans, held-for-sale, at fair value | Fixed loans | $251 to $500 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	6.50%	6.38%
Residential loans, held-for-sale, at fair value | 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	$ 501
Loan Balance, maximum	$ 750	$ 750
Number of Loans | loan	301	788
Total Principal	$ 186,251	$ 475,935
30-89 Days DQ	0	559
90 Days DQ	$ 747	$ 747
Residential loans, held-for-sale, at fair value | Fixed loans | $501 to $750 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.20%	3.75%
Residential loans, held-for-sale, at fair value | 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%	7.00%
Residential loans, held-for-sale, at fair value | 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	$ 751
Loan Balance, maximum	$ 1,000	$ 1,000
Number of Loans | loan	161	295
Total Principal	$ 139,786	$ 255,429
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Residential loans, held-for-sale, at fair value | 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	3.50%	3.25%
Residential loans, held-for-sale, at fair value | 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%	6.63%
Residential loans, held-for-sale, at fair value | 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	$ 1,000
Number of Loans | loan	77	99
Total Principal	$ 100,293	$ 126,392
30-89 Days DQ	1,650	0
90 Days DQ	$ 0	$ 0
Residential loans, held-for-sale, at fair value | Fixed loans | Over $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.20%	3.75%
Residential loans, held-for-sale, at fair value | 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%	6.13%
Residential loans, held-for-sale, at fair value | ARM loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2
90 Days DQ	$ 0
Residential loans, held-for-sale, at fair value | ARM loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.38%
Residential loans, held-for-sale, at fair value | ARM loans | Maximum
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, at fair value | Hybrid ARM loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	115	108
Total Principal	$ 91,883	$ 87,144
30-89 Days DQ	0	0
90 Days DQ	$ 0	0
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.00%
Residential loans, held-for-sale, at fair value | Hybrid ARM 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, at fair value | 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
Loan Balance, maximum	$ 250
Number of Loans | loan	7
Total Principal	$ 1,254
30-89 Days DQ	0
90 Days DQ	$ 0
Residential loans, held-for-sale, at fair value | 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	5.20%
Residential loans, held-for-sale, at fair value | 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	7.00%
Residential loans, held-for-sale, at fair value | 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	251
Loan Balance, maximum	$ 500	$ 500
Number of Loans | loan	1	8
Total Principal	$ 432	$ 3,795
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Residential loans, held-for-sale, at fair value | 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	4.25%	3.88%
Residential loans, held-for-sale, at fair value | 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	4.25%	5.38%
Residential loans, held-for-sale, at fair value | 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	$ 501
Loan Balance, maximum	$ 750	$ 750
Number of Loans | loan	52	50
Total Principal	$ 33,611	$ 31,759
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Residential loans, held-for-sale, at fair value | 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	3.00%	3.63%
Residential loans, held-for-sale, at fair value | 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	5.50%	7.38%
Residential loans, held-for-sale, at fair value | 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	$ 751
Loan Balance, maximum	$ 1,000	$ 1,000
Number of Loans | loan	33	27
Total Principal	$ 28,573	$ 23,478
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Residential loans, held-for-sale, at fair value | 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	3.25%	3.88%
Residential loans, held-for-sale, at fair value | 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	4.88%	5.25%
Residential loans, held-for-sale, at fair value | 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	$ 1,000
Number of Loans | loan	22	23
Total Principal	$ 28,013	$ 28,112
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
Residential loans, held-for-sale, at fair value | 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	3.25%	3.50%
Residential loans, held-for-sale, at fair value | 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	5.25%	5.50%
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	2,198	2,641
Total Principal	$ 424,830	$ 545,209
30-89 Days DQ	15,739	16,291
90 Days DQ	$ 9,803	$ 13,955
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	2,186	2,620
Total Principal	$ 419,399	$ 535,743
30-89 Days DQ	15,739	16,291
90 Days DQ	$ 9,803	13,955
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	6.00%
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	$ 250
Number of Loans | loan	1,685	1,988
Total Principal	$ 169,230	$ 206,490
30-89 Days DQ	5,135	7,179
90 Days DQ	$ 3,109	$ 3,952
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	1.38%	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	6.00%	5.50%
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	$ 251
Loan Balance, maximum	$ 500	$ 500
Number of Loans | loan	345	424
Total Principal	$ 120,261	$ 148,154
30-89 Days DQ	6,149	5,989
90 Days DQ	$ 3,835	$ 4,368
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%	1.25%
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	$ 501
Loan Balance, maximum	$ 750	$ 750
Number of Loans | loan	87	110
Total Principal	$ 53,811	$ 67,471
30-89 Days DQ	3,628	1,309
90 Days DQ	$ 1,211	$ 1,880
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	4.38%	4.50%
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	$ 751
Loan Balance, maximum	$ 1,000	$ 1,000
Number of Loans | loan	45	61
Total Principal	$ 37,756	$ 51,918
30-89 Days DQ	827	791
90 Days DQ	$ 1,648	$ 2,561
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%	1.63%
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%	4.38%
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	$ 1,000
Number of Loans | loan	24	37
Total Principal	$ 38,341	$ 61,710
30-89 Days DQ	0	1,023
90 Days DQ	$ 0	$ 1,194
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%	1.63%
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	4.00%	4.38%
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	12	21
Total Principal	$ 5,431	$ 9,466
30-89 Days DQ	0	0
90 Days DQ	$ 0	0
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	3.63%
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	5.13%
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	$ 250
Number of Loans | loan	2	4
Total Principal	$ 465	$ 769
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	4.25%	4.63%
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	4.50%	5.00%
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	$ 251
Loan Balance, maximum	$ 500	$ 500
Number of Loans | loan	7	10
Total Principal	$ 2,494	$ 3,675
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	3.63%	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	5.13%	4.88%
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	$ 501
Loan Balance, maximum	$ 750	$ 750
Number of Loans | loan	2	6
Total Principal	$ 1,181	$ 3,667
30-89 Days DQ	0	0
90 Days DQ	$ 0	$ 0
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	4.50%	4.38%
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	4.50%	5.00%
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	$ 1,000
Number of Loans | loan	1	1
Total Principal	$ 1,291	$ 1,355
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	4.50%	4.88%
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	4.50%	4.88%
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	3,156	2,800
Total Principal	$ 2,240,680	$ 2,041,010
30-89 Days DQ	24,266	10,789
90 Days DQ	$ 6,756	1,905
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	6.75%
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	$ 250
Number of Loans | loan	56	29
Total Principal	$ 10,743	$ 5,484
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	5.50%	5.63%
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	$ 251
Loan Balance, maximum	$ 500	$ 500
Number of Loans | loan	420	336
Total Principal	$ 184,455	$ 149,917
30-89 Days DQ	2,282	1,419
90 Days DQ	$ 0	$ 925
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%	6.13%
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	$ 501
Loan Balance, maximum	$ 750	$ 750
Number of Loans | loan	1,528	1,363
Total Principal	$ 940,914	$ 841,692
30-89 Days DQ	13,020	3,633
90 Days DQ	$ 2,366	$ 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	6.75%	6.38%
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	$ 751
Loan Balance, maximum	$ 1,000	$ 1,000
Number of Loans | loan	835	761
Total Principal	$ 719,609	$ 659,845
30-89 Days DQ	7,856	3,549
90 Days DQ	$ 3,297	$ 980
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	$ 1,000
Number of Loans | loan	317	311
Total Principal	$ 384,959	$ 384,072
30-89 Days DQ	1,108	2,188
90 Days DQ	$ 1,093	$ 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	3.50%	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	14,502	7,900
Total Principal	$ 2,428,034	$ 1,310,974
30-89 Days DQ	785,132	198,945
90 Days DQ	$ 135,175	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	11.00%
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	0
Loan Balance, maximum	$ 250	$ 250
Number of Loans | loan	11,639	6,404
Total Principal	$ 1,501,538	$ 830,118
30-89 Days DQ	477,592	130,608
90 Days DQ	$ 79,632	$ 30,686
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%	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	11.00%	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	$ 251
Loan Balance, maximum	$ 500	$ 500
Number of Loans | loan	2,805	1,469
Total Principal	$ 894,125	$ 466,222
30-89 Days DQ	297,732	66,706
90 Days DQ	$ 52,920	$ 19,319
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%	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	7.75%	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	$ 501
Loan Balance, maximum	$ 750	$ 750
Number of Loans | loan	57	27
Total Principal	$ 31,350	$ 14,634
30-89 Days DQ	8,787	1,631
90 Days DQ	$ 2,623	$ 523
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%	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	6.75%	5.88%
Freddie Mac SLST | 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
Number of Loans | loan	1
Total Principal	$ 1,021
30-89 Days DQ	1,021
90 Days DQ	$ 0
Freddie Mac SLST | 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	4.00%
Freddie Mac SLST | 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	4.00%
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	2,940	3,296
Total Principal	$ 2,052,778	$ 2,385,330
30-89 Days DQ	12,221	6,086
90 Days DQ	$ 1,585	$ 1,224
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	2,641	2,911
Total Principal	$ 1,825,379	$ 2,081,764
30-89 Days DQ	7,645	4,223
90 Days DQ	$ 614	1,224
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	$ 250
Number of Loans | loan	38	36
Total Principal	$ 6,549	$ 6,737
30-89 Days DQ	223	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	2.90%	3.30%
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	4.80%	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	$ 251
Loan Balance, maximum	$ 500	$ 500
Number of Loans | loan	676	679
Total Principal	$ 287,984	$ 292,730
30-89 Days DQ	0	0
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%	2.75%
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	6.00%	5.75%
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	$ 501
Loan Balance, maximum	$ 750	$ 750
Number of Loans | loan	1,091	1,213
Total Principal	$ 669,159	$ 746,503
30-89 Days DQ	2,325	1,320
90 Days DQ	$ 614	$ 1,224
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	2.80%	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	$ 751
Loan Balance, maximum	$ 1,000	$ 1,000
Number of Loans | loan	519	599
Total Principal	$ 447,499	$ 517,075
30-89 Days DQ	1,895	903
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	6.63%	6.13%
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	$ 1,000
Number of Loans | loan	317	384
Total Principal	$ 414,188	$ 518,719
30-89 Days DQ	3,202	2,000
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	3.00%	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		5.88%
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	299	385
Total Principal	$ 227,399	$ 303,566
30-89 Days DQ	4,576	1,863
90 Days DQ	$ 971	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	2.875%
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	6.00%
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	$ 250
Number of Loans | loan	12	12
Total Principal	$ 2,423	$ 2,190
30-89 Days DQ	0	59
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	3.50%	2.88%
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	4.50%	4.88%
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	$ 251
Loan Balance, maximum	$ 500	$ 500
Number of Loans | loan	51	59
Total Principal	$ 20,781	$ 23,986
30-89 Days DQ	0	0
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	3.25%	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	5.63%	5.75%
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	$ 501
Loan Balance, maximum	$ 750	$ 750
Number of Loans | loan	97	116
Total Principal	$ 61,708	$ 73,360
30-89 Days DQ	1,364	692
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	5.13%	5.75%
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	$ 751
Loan Balance, maximum	$ 1,000	$ 1,000
Number of Loans | loan	90	129
Total Principal	$ 77,550	$ 111,879
30-89 Days DQ	1,784	0
90 Days DQ	$ 971	$ 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	6.00%	6.38%
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	$ 1,000
Number of Loans | loan	49	69
Total Principal	$ 64,937	$ 92,151
30-89 Days DQ	1,428	1,112
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%	5.50%

Business Purpose Residential _3

Business Purpose Residential Loans (Details) $ in Thousands	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan	Feb. 28, 2019USD ($)	Dec. 31, 2019USD ($)loan	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)loan	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan							669	1,484
Principal amount outstanding on loans securitized	$ 524,928	$ 1,034,284		$ 524,928		$ 524,928	$ 524,928	$ 1,034,284
Purchases of held-for-sale loans							5,823,547	7,162,131	$ 5,705,842
Proceeds from sales of held-for-sale loans							$ 5,198,089	5,383,313	3,903,147
Number of loans transferred | loan							3
Transfers from residential loans to real estate owned							$ 8,609	$ 4,104	4,220
Commitment To Fund Residential Bridge Loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other commitment	$ 173,000			173,000		173,000	$ 173,000
Single-family rental loans, held-for-sale
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	201	11					201	11
Principal amount outstanding on loans securitized	$ 321,636	$ 27,566		321,636		321,636	$ 321,636	$ 27,566
Residential loans	$ 332,000	$ 28,000		$ 332,000		$ 332,000	$ 332,000	$ 28,000
Number of loans in foreclosure | loan	1	0		1		1	1	0
Loans held as assets amount in foreclosure	$ 100			$ 100		$ 100	$ 100
Purchases of held-for-sale loans			$ 19,000			$ 514,000
Gain (loss) on investments							$ 13,000
Loans maturity one							5 years
Loans maturity two							7 years
Loans maturity three							10 years
Weighted average coupon rate	4.96%			4.96%		4.96%	4.96%
Contract maturities							9 years
Weighted average original loan-to-value (LTV)	69.00%			69.00%		69.00%	69.00%
Weighted-average debt service coverage ratio							1.43
Single-family rental loans, held-for-sale | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Residential loans	$ 331,565	$ 28,460		$ 331,565		$ 331,565	$ 331,565	$ 28,460
Purchases of held-for-sale loans							238,000
Single-family rental loans, held-for-sale | CoreVest LLC
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Residential loans	$ 0	0		0		0	0	0
Purchases of held-for-sale loans				407,000
Single-family rental loans, held-for-sale | CAFL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Purchases of held-for-sale loans							394,000
Proceeds from sales of held-for-sale loans							$ 20,000
Single-family rental loans held-for-investment | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	107						107
Principal amount outstanding on loans securitized	$ 231,211			231,211		231,211	$ 231,211
Residential loans	$ 237,620	0		$ 237,620		$ 237,620	$ 237,620	0
Number of loans past due | loan	0			0		0	0
Gain (loss) on investments							$ 300
Loans maturity one							5 years
Loans maturity two							7 years
Loans maturity three							10 years
Weighted average coupon rate	4.89%			4.89%		4.89%	4.89%
Contract maturities							7 years
Weighted average original loan-to-value (LTV)	68.00%			68.00%		68.00%	68.00%
Weighted-average debt service coverage ratio							1.36
Single-family rental loans held-for-investment | CoreVest LLC
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Residential loans	$ 2,192,552	0		$ 2,192,552		$ 2,192,552	$ 2,192,552	0
Single-family rental loans held-for-investment | CAFL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	783						783
Principal amount outstanding on loans securitized	$ 2,078,214			2,078,214		2,078,214	$ 2,078,214
Residential loans	$ 2,190,000			$ 2,190,000		$ 2,190,000	$ 2,190,000
Number of loans in foreclosure | loan	5			5		5	5
Loans held as assets amount in foreclosure	$ 9,000			$ 9,000		$ 9,000	$ 9,000
Purchases of held-for-sale loans							2,000
Gain (loss) on investments							$ (15,000)
Loans maturity one							5 years
Loans maturity two							7 years
Loans maturity three							10 years
Weighted average coupon rate	5.70%			5.70%		5.70%	5.70%
Contract maturities							7 years
Weighted average original loan-to-value (LTV)	68.00%			68.00%		68.00%	68.00%
Weighted-average debt service coverage ratio							1.35
Single-family rental loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Proceeds from loan originations to third parties						$ 20,000
Single-family rental loans | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Residential loans	$ 569,185	28,460		$ 569,185		569,185	$ 569,185	28,460
Single-family rental loans | CoreVest LLC
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Residential loans	2,192,552	0		2,192,552		2,192,552	2,192,552	0
Residential Bridge, Held-for-sale at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Residential loans	$ 0	$ 0		0		0	$ 0	$ 0
Residential Bridge, Held-for-investment at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	2,653	157					2,653	157
Principal amount outstanding on loans securitized	$ 741,232	$ 112,360		741,232		741,232	$ 741,232	$ 112,360
Residential loans	$ 745,006	$ 112,798		$ 745,006		$ 745,006	$ 745,006	$ 112,798
Number of loans in foreclosure | loan	31	4		31		31	31	4
Loans held as assets amount in foreclosure	$ 14,000	$ 11,000		$ 14,000		$ 14,000	$ 14,000	$ 11,000
Purchases of held-for-sale loans			$ 10,000			$ 448,000
Gain (loss) on investments							$ (2,000)
Weighted average coupon rate	8.11%			8.11%		8.11%	8.11%
Weighted average original loan-to-value (LTV)	70.00%			70.00%		70.00%	70.00%
Aggregate fair value, delinquent or in foreclosure	$ 12,000			$ 12,000		$ 12,000	$ 12,000
Transfers from residential loans to real estate owned							$ 8,000
Weighted average original Fair Isaac Corporation (FICO) score	732			732		732	732
Residential Bridge, Held-for-investment at fair value | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Contract maturities							6 months
Residential Bridge, Held-for-investment at fair value | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Contract maturities							24 months
Residential Bridge, Held-for-investment at fair value | CoreVest LLC
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Purchases of held-for-sale loans				$ 375,000
Residential bridge loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Proceeds from loan originations to third parties						$ 56,000
Residential loans	$ 745,006	112,798		745,006		745,006	$ 745,006	112,798
Held-for-sale at fair value, Total
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Residential loans	331,565	28,460		331,565		331,565	331,565	28,460
Held-for-investment at fair value, Total
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Residential loans	3,175,178	112,798		3,175,178		3,175,178	3,175,178	112,798
Business purpose residential loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fee income						16,000
Residential loans	$ 3,506,743	$ 141,258		$ 3,506,743		$ 3,506,743	$ 3,506,743	$ 141,258
Financing Receivables, Equal to Greater than 90 Days Past Due | Single-family rental loans, held-for-sale
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans past due | loan	2	0		2		2	2	0
Loans held as assets, 90 days or more past due		$ 2,000						$ 2,000
Financing Receivables, Equal to Greater than 90 Days Past Due | Single-family rental loans held-for-investment | CAFL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans past due | loan	18			18		18	18
Loans held as assets, 90 days or more past due	$ 29,000			$ 29,000		$ 29,000	$ 29,000
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Bridge, Held-for-investment at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans past due | loan	15	7		15		15	15	7
Loans held as assets, 90 days or more past due	$ 9,000	$ 12,000		$ 9,000		$ 9,000	$ 9,000	$ 12,000
Aggregate fair value, delinquent or in foreclosure	$ 7,000			$ 7,000		7,000	7,000
Residential bridge loans | Business Purpose Mortgage Banking
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets					$ 5,000		$ 4,518	$ 0	$ 0
Business purpose residential loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Proceeds from loan originations						$ 1,020,000

Business Purpose Residential _4

Business Purpose Residential Loans - Classifications and Carrying Values of Business Purpose Residential Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Single-family rental loans, held-for-sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential loans	$ 332,000	$ 28,000
Residential Bridge, Held-for-sale at fair value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential loans	0	0
Residential bridge loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential loans	745,006	112,798
Residential bridge loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential loans	745,006	112,798
Held-for-sale at fair value, Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential loans	331,565	28,460
Held-for-investment at fair value, Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential loans	3,175,178	112,798
Business purpose residential loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential loans	3,506,743	141,258
Redwood | Single-family rental loans, held-for-sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential loans	331,565	28,460
Redwood | Single-family rental loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential loans	237,620	0
Redwood | Single-family rental loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential loans	569,185	28,460
CoreVest LLC | Single-family rental loans, held-for-sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential loans	0	0
CoreVest LLC | Single-family rental loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential loans	2,192,552	0
CoreVest LLC | Single-family rental loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential loans	$ 2,192,552	$ 0

Business Purpose Residential _5

Business Purpose Residential Loans - Geographic Concentration of Business Purpose Loans (Details)	12 Months Ended
	Dec. 31, 2019	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%	100.00%
Single-family rental loans, held-for-sale at fair value | Florida
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5.00%	69.00%
Single-family rental loans, held-for-sale at fair value | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	19.00%	14.00%
Single-family rental loans, held-for-sale at fair value | New Jersey
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	12.00%
Single-family rental loans, held-for-sale at fair value | New York
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5.00%
Single-family rental loans, held-for-sale at fair value | California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	2.00%	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%	0.00%
Single-family rental loans, held-for-sale at fair value | Georgia
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	8.00%
Single-family rental loans, held-for-sale at fair value | Alabama
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5.00%
Single-family rental loans, held-for-sale at fair value | Arkansas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	6.00%
Single-family rental loans, held-for-sale at fair value | Maryland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	6.00%
Single-family rental loans, held-for-sale at fair value | Illinois
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	1.00%
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	31.00%	17.00%
Residential bridge loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	100.00%	100.00%
Residential bridge loans held-for-investment | Florida
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	9.00%	7.00%
Residential bridge loans held-for-investment | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	3.00%	0.00%
Residential bridge loans held-for-investment | New Jersey
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	8.00%
Residential bridge loans held-for-investment | New York
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	6.00%
Residential bridge loans held-for-investment | California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	21.00%	79.00%
Residential bridge loans held-for-investment | Utah
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5.00%	5.00%
Residential bridge loans held-for-investment | Georgia
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	7.00%
Residential bridge loans held-for-investment | Alabama
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	4.00%
Residential bridge loans held-for-investment | Arkansas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	0.00%
Residential bridge loans held-for-investment | Maryland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	0.00%
Residential bridge loans held-for-investment | Illinois
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	3.00%
Residential bridge loans held-for-investment | Other states (none greater than 5%)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	34.00%	9.00%
Redwood | Single-family rental loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	100.00%	0.00%
Redwood | Single-family rental loans held-for-investment | Florida
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	0.00%	0.00%
Redwood | Single-family rental loans held-for-investment | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	12.00%	0.00%
Redwood | Single-family rental loans held-for-investment | New Jersey
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5.00%
Redwood | Single-family rental loans held-for-investment | New York
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	1.00%
Redwood | Single-family rental loans held-for-investment | California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	1.00%	0.00%
Redwood | Single-family rental loans held-for-investment | Utah
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	0.00%	0.00%
Redwood | Single-family rental loans held-for-investment | Georgia
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	0.00%
Redwood | Single-family rental loans held-for-investment | Alabama
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	0.00%
Redwood | Single-family rental loans held-for-investment | Arkansas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	0.00%
Redwood | Single-family rental loans held-for-investment | Maryland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	0.00%
Redwood | Single-family rental loans held-for-investment | Illinois
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	0.00%
Redwood | Single-family rental loans held-for-investment | Other states (none greater than 5%)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	81.00%	0.00%
CAFL | Single-family rental loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	100.00%	0.00%
CAFL | Single-family rental loans held-for-investment | Florida
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	8.00%	0.00%
CAFL | Single-family rental loans held-for-investment | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	15.00%	0.00%
CAFL | Single-family rental loans held-for-investment | New Jersey
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	11.00%
CAFL | Single-family rental loans held-for-investment | New York
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	1.00%
CAFL | Single-family rental loans held-for-investment | California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	7.00%	0.00%
CAFL | Single-family rental loans held-for-investment | Utah
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	0.00%	0.00%
CAFL | Single-family rental loans held-for-investment | Georgia
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5.00%
CAFL | Single-family rental loans held-for-investment | Alabama
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	4.00%
CAFL | Single-family rental loans held-for-investment | Arkansas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	2.00%
CAFL | Single-family rental loans held-for-investment | Maryland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	2.00%
CAFL | Single-family rental loans held-for-investment | Illinois
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5.00%
CAFL | Single-family rental loans held-for-investment | Other states (none greater than 5%)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	40.00%	0.00%

Business Purpose Residential _6

Business Purpose Residential Loans - Product Types and Characteristics of Business Purpose Loans (Details) $ in Thousands	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan			669	1,484
Total Principal	$ 524,928	$ 1,034,284	$ 524,928	$ 1,034,284
30-89 Days DQ	1,650	559	1,650	559
90 Days DQ	$ 747	$ 747	$ 747	$ 747
Single-family rental loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	201	11	201	11
Total Principal	$ 321,636	$ 27,566	$ 321,636	$ 27,566
30-89 Days DQ	0	0	0	0
90 Days DQ	1,818	0	1,818	0
Single-family rental loans | $0 to $250
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	0		0
Loan Balance, maximum	250		$ 250
Number of Loans | loan			85
Total Principal	10,506		$ 10,506
30-89 Days DQ	0		0
90 Days DQ	130		$ 130
Single-family rental loans | $0 to $250 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			5.50%
Single-family rental loans | $0 to $250 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			7.63%
Single-family rental loans | $251 to $500
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	251	251	$ 251	251
Loan Balance, maximum	500	500	$ 500	$ 500
Number of Loans | loan			9	2
Total Principal	3,708	787	$ 3,708	$ 787
30-89 Days DQ	0	0	0	0
90 Days DQ	0	0	$ 0	$ 0
Single-family rental loans | $251 to $500 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			4.94%	6.79%
Single-family rental loans | $251 to $500 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			6.00%	7.47%
Single-family rental loans | $501 to $750
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	501	501	$ 501	$ 501
Loan Balance, maximum	750	750	$ 750	$ 750
Number of Loans | loan			21	2
Total Principal	13,335	1,252	$ 13,335	$ 1,252
30-89 Days DQ	0	0	0	0
90 Days DQ	0	0	$ 0	$ 0
Single-family rental loans | $501 to $750 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			4.55%	6.12%
Single-family rental loans | $501 to $750 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			5.96%	7.25%
Single-family rental loans | $751 to $1,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	751	751	$ 751	$ 751
Loan Balance, maximum	1,000	1,000	$ 1,000	$ 1,000
Number of Loans | loan			13	3
Total Principal	11,676	2,488	$ 11,676	$ 2,488
30-89 Days DQ	0	0	0	0
90 Days DQ	0	0	$ 0	$ 0
Single-family rental loans | $751 to $1,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			5.00%	5.91%
Single-family rental loans | $751 to $1,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			5.93%	6.58%
Single-family rental loans | Over $1,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, maximum	1,000	1,000	$ 1,000	$ 1,000
Number of Loans | loan			73	4
Total Principal	282,411	23,039	$ 282,411	$ 23,039
30-89 Days DQ	0	0	0	0
90 Days DQ	$ 1,688	$ 0	$ 1,688	$ 0
Single-family rental loans | Over $1,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			4.35%	5.62%
Single-family rental loans | Over $1,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			6.28%	6.94%
Residential bridge loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	2,653	157	2,653	157
Total Principal	$ 741,232	$ 112,360	$ 741,232	$ 112,360
30-89 Days DQ	39,553	4,991	39,553	4,991
90 Days DQ	8,989	12,134	8,989	12,134
Residential bridge loans held-for-investment | $0 to $250
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	0	0	0	0
Loan Balance, maximum	250	250	$ 250	$ 250
Number of Loans | loan			2,207	50
Total Principal	197,449	7,941	$ 197,449	$ 7,941
30-89 Days DQ	1,447	262	1,447	262
90 Days DQ	369	695	$ 369	$ 695
Residential bridge loans held-for-investment | $0 to $250 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			6.53%	8.00%
Residential bridge loans held-for-investment | $0 to $250 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			12.00%	12.00%
Residential bridge loans held-for-investment | $251 to $500
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	251	251	$ 251	$ 251
Loan Balance, maximum	500	500	$ 500	$ 500
Number of Loans | loan			198	38
Total Principal	71,361	13,297	$ 71,361	$ 13,297
30-89 Days DQ	2,811	636	2,811	636
90 Days DQ	675	469	$ 675	$ 469
Residential bridge loans held-for-investment | $251 to $500 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			6.99%	8.00%
Residential bridge loans held-for-investment | $251 to $500 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			13.00%	10.00%
Residential bridge loans held-for-investment | $501 to $750
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	501	501	$ 501	$ 501
Loan Balance, maximum	750	750	$ 750	$ 750
Number of Loans | loan			71	21
Total Principal	42,862	12,410	$ 42,862	$ 12,410
30-89 Days DQ	2,072	1,769	2,072	1,769
90 Days DQ	508	0	$ 508	$ 0
Residential bridge loans held-for-investment | $501 to $750 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			6.99%	7.50%
Residential bridge loans held-for-investment | $501 to $750 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			9.99%	10.00%
Residential bridge loans held-for-investment | $751 to $1,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	751	751	$ 751	$ 751
Loan Balance, maximum	1,000	1,000	$ 1,000	$ 1,000
Number of Loans | loan			40	19
Total Principal	34,646	16,937	$ 34,646	$ 16,937
30-89 Days DQ	1,771	840	1,771	840
90 Days DQ	2,443	0	$ 2,443	$ 0
Residential bridge loans held-for-investment | $751 to $1,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			7.28%	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%	10.00%
Residential bridge loans held-for-investment | Over $1,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, maximum	1,000	1,000	$ 1,000	$ 1,000
Number of Loans | loan			137	29
Total Principal	394,914	61,775	$ 394,914	$ 61,775
30-89 Days DQ	31,452	1,484	31,452	1,484
90 Days DQ	$ 4,994	$ 10,970	$ 4,994	$ 10,970
Residential bridge loans held-for-investment | Over $1,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			5.79%	8.00%
Residential bridge loans held-for-investment | Over $1,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			10.25%	10.00%
Redwood | Single-family rental loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	107		107
Total Principal	$ 231,211		$ 231,211
30-89 Days DQ	0		0
90 Days DQ	0		0
Redwood | Single-family rental loans held-for-investment | $251 to $500
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	251		251
Loan Balance, maximum	500		$ 500
Number of Loans | loan			20
Total Principal	7,925		$ 7,925
30-89 Days DQ	0		0
90 Days DQ	0		$ 0
Redwood | Single-family rental loans held-for-investment | $251 to $500 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			4.88%
Redwood | Single-family rental loans held-for-investment | $251 to $500 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			7.47%
Redwood | Single-family rental loans held-for-investment | $501 to $750
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	501		$ 501
Loan Balance, maximum	750		$ 750
Number of Loans | loan			26
Total Principal	15,620		$ 15,620
30-89 Days DQ	0		0
90 Days DQ	0		$ 0
Redwood | Single-family rental loans held-for-investment | $501 to $750 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			4.45%
Redwood | Single-family rental loans held-for-investment | $501 to $750 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			7.25%
Redwood | Single-family rental loans held-for-investment | $751 to $1,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	751		$ 751
Loan Balance, maximum	1,000		$ 1,000
Number of Loans | loan			16
Total Principal	13,616		$ 13,616
30-89 Days DQ	0		0
90 Days DQ	0		$ 0
Redwood | Single-family rental loans held-for-investment | $751 to $1,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			4.91%
Redwood | Single-family rental loans held-for-investment | $751 to $1,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			6.58%
Redwood | Single-family rental loans held-for-investment | Over $1,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, maximum	1,000		$ 1,000
Number of Loans | loan			45
Total Principal	194,050		$ 194,050
30-89 Days DQ	0		0
90 Days DQ	$ 0		$ 0
Redwood | Single-family rental loans held-for-investment | Over $1,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			3.93%
Redwood | Single-family rental loans held-for-investment | Over $1,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			6.94%
CAFL | Single-family rental loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	783		783
Total Principal	$ 2,078,214		$ 2,078,214
30-89 Days DQ	22,771		22,771
90 Days DQ	29,039		29,039
CAFL | Single-family rental loans held-for-investment | $0 to $250
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	0		0
Loan Balance, maximum	250		$ 250
Number of Loans | loan			2
Total Principal	398		$ 398
30-89 Days DQ	0		0
90 Days DQ	0		$ 0
CAFL | Single-family rental loans held-for-investment | $0 to $250 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			5.46%
CAFL | Single-family rental loans held-for-investment | $0 to $250 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			5.80%
CAFL | Single-family rental loans held-for-investment | $251 to $500
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	251		$ 251
Loan Balance, maximum	500		$ 500
Number of Loans | loan			56
Total Principal	25,643		$ 25,643
30-89 Days DQ	1,306		1,306
90 Days DQ	0		$ 0
CAFL | Single-family rental loans held-for-investment | $251 to $500 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			4.92%
CAFL | Single-family rental loans held-for-investment | $251 to $500 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			7.05%
CAFL | Single-family rental loans held-for-investment | $501 to $750
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	501		$ 501
Loan Balance, maximum	750		$ 750
Number of Loans | loan			148
Total Principal	91,414		$ 91,414
30-89 Days DQ	1,259		1,259
90 Days DQ	1,990		$ 1,990
CAFL | Single-family rental loans held-for-investment | $501 to $750 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			4.75%
CAFL | Single-family rental loans held-for-investment | $501 to $750 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			7.31%
CAFL | Single-family rental loans held-for-investment | $751 to $1,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	751		$ 751
Loan Balance, maximum	1,000		$ 1,000
Number of Loans | loan			98
Total Principal	85,472		$ 85,472
30-89 Days DQ	1,639		1,639
90 Days DQ	879		$ 879
CAFL | Single-family rental loans held-for-investment | $751 to $1,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			4.62%
CAFL | Single-family rental loans held-for-investment | $751 to $1,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			7.23%
CAFL | Single-family rental loans held-for-investment | Over $1,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, maximum	1,000		$ 1,000
Number of Loans | loan			479
Total Principal	1,875,287		$ 1,875,287
30-89 Days DQ	18,567		18,567
90 Days DQ	$ 26,170		$ 26,170
CAFL | Single-family rental loans held-for-investment | Over $1,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			4.31%
CAFL | Single-family rental loans held-for-investment | Over $1,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			7.57%

Multifamily Loans (Details)

Multifamily Loans (Details) $ in Thousands	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan			669	1,484
Total Principal | $	$ 524,928	$ 1,034,284	$ 524,928	$ 1,034,284
Multifamily loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	279	162	279	162
Total Principal | $	$ 4,195,000	$ 2,126,698	$ 4,195,000	$ 2,126,698
Residential loans | $	$ 4,410,000	$ 2,140,000	$ 4,410,000	2,140,000
Weighted average original loan-to-value (LTV)	69.00%		69.00%
Weighted average coupon rate	4.13%		4.13%
Contract maturities			6 years
Number of loans past due | loan	0		0
Number of loans in foreclosure | loan	0		0
Valuation adjustment gain (loss) | $			$ 130,000	$ 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, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	100.00%	100.00%
Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	13.00%	9.00%
California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	11.00%	11.00%
Florida
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	10.00%	0.00%
Arizona
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	6.00%	8.00%
Georgia
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	6.00%	6.00%
Washington
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5.00%	0.00%
Colorado
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5.00%	0.00%
Other states (none greater than 5%)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	44.00%	66.00%

Multifamily Loans - Product Typ

Multifamily Loans - Product Types and Characteristics of Multifamily Loans (Details) $ in Thousands	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan			669	1,484
Total Principal	$ 524,928	$ 1,034,284	$ 524,928	$ 1,034,284
30-89 Days DQ	1,650	559	1,650	559
90 Days DQ	$ 747	$ 747	$ 747	$ 747
Multifamily loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	279	162	279	162
Total Principal	$ 4,195,000	$ 2,126,698	$ 4,195,000	$ 2,126,698
30-89 Days DQ	0	0	0	0
90 Days DQ	0	0	0	0
Multifamily loans | $1,000 to $10,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	1,000	1,000	1,000	1,000
Loan Balance, maximum	10,000	10,000	$ 10,000	$ 10,000
Number of Loans | loan			114	70
Total Principal	674,666	394,373	$ 674,666	$ 394,373
30-89 Days DQ	0	0	0	0
90 Days DQ	0	0	$ 0	$ 0
Multifamily loans | $1,000 to $10,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			3.29%	3.29%
Multifamily loans | $1,000 to $10,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			4.73%	4.73%
Multifamily loans | $10,001 to $20,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	10,001	10,001	$ 10,001	$ 10,001
Loan Balance, maximum	20,000	20,000	$ 20,000	$ 20,000
Number of Loans | loan			102	66
Total Principal	1,489,118	960,992	$ 1,489,118	$ 960,992
30-89 Days DQ	0	0	0	0
90 Days DQ	0	0	$ 0	$ 0
Multifamily loans | $10,001 to $20,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			3.54%	3.54%
Multifamily loans | $10,001 to $20,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			4.94%	4.61%
Multifamily loans | $20,001 to $30,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	20,001	20,001	$ 20,001	$ 20,001
Loan Balance, maximum	30,000	30,000	$ 30,000	$ 30,000
Number of Loans | loan			32	16
Total Principal	750,712	373,036	$ 750,712	$ 373,036
30-89 Days DQ	0	0	0	0
90 Days DQ	0	0	$ 0	$ 0
Multifamily loans | $20,001 to $30,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			3.54%	3.65%
Multifamily loans | $20,001 to $30,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			4.69%	4.72%
Multifamily loans | $30,001 to $40,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	30,001	30,001	$ 30,001	$ 30,001
Loan Balance, maximum	40,000	40,000	$ 40,000	$ 40,000
Number of Loans | loan			19	7
Total Principal	654,729	244,074	$ 654,729	$ 244,074
30-89 Days DQ	0	0	0	0
90 Days DQ	0	0	$ 0	$ 0
Multifamily loans | $30,001 to $40,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			3.52%	3.62%
Multifamily loans | $30,001 to $40,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			4.79%	4.71%
Multifamily loans | Over $40,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, maximum	40,000	40,000	$ 40,000	$ 40,000
Number of Loans | loan			12	3
Total Principal	625,775	154,223	$ 625,775	$ 154,223
30-89 Days DQ	0	0	0	0
90 Days DQ	$ 0	$ 0	$ 0	$ 0
Multifamily loans | Over $40,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			3.55%	3.74%
Multifamily loans | Over $40,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate			4.65%	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, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Trading		$ 860,540	$ 1,118,612
Available-for-sale		239,334	333,882
Total Real Estate Securities	[1]	$ 1,099,874	$ 1,452,494
[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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , 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, 2019	Dec. 31, 2018
Investment Holdings [Line Items]
Trading securities	$ 860,540	$ 1,118,612
Senior IO Securities
Investment Holdings [Line Items]
Trading securities	150,067	158,670
Subordinate Securities | Mezzanine
Investment Holdings [Line Items]
Trading securities	538,489	610,819
Subordinate Securities | Subordinate
Investment Holdings [Line Items]
Trading securities	$ 171,984	$ 349,123

Real Estate Securities - Additi

Real Estate Securities - Additional Information (Details)	12 Months Ended
	Dec. 31, 2019USD ($)investment	Dec. 31, 2018USD ($)investment
Investment Holdings [Line Items]
Trading securities	$ 860,540,000	$ 1,118,612,000
Trading securities acquired	367,000,000	688,000,000
Trading securities sold	593,000,000	415,000,000
Change in trading securities	56,000,000	(8,000,000)
Available-for-sale securities	239,334,000	333,882,000
AFS securities acquired	27,000,000	8,000,000
AFS securities sold	$ 110,000,000	144,000,000
AFS net realized gains		$ 27,000,000
Number of AFS securities | investment	107	128
Number of securities in unrealized loss position | investment	1	7
Number of securities in a continuous unrealized loss position for twelve consecutive months or longer | investment	1	3
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	$ 100,000
Other than temporary impairments	0
Interest Only Senior Trading Securities
Investment Holdings [Line Items]
Debt securities, trading	64,000,000	$ 82,000,000
Unpaid principal balance	84,000,000	78,000,000
Certificated Servicing Strips
Investment Holdings [Line Items]
Debt securities, trading	36,000,000	43,000,000
Third Party Commercial/Multifamily Securities
Investment Holdings [Line Items]
Available-for-sale securities	9,000,000
Re-preforming Loans Securities
Investment Holdings [Line Items]
Debt securities, trading	55,000,000	48,000,000
Residential
Investment Holdings [Line Items]
Available-for-sale securities	230,000,000
Marketable securities, less than five years	0
Marketable securities, due from five to ten years	8,000,000
Subordinate Securities
Investment Holdings [Line Items]
Available-for-sale securities	199,855,000	209,860,000
Mezzanine
Investment Holdings [Line Items]
Available-for-sale securities	13,687,000	36,407,000
Mezzanine | Trading securities
Investment Holdings [Line Items]
Unpaid principal balance	537,000,000	646,000,000
Mezzanine | Sequoia Securities
Investment Holdings [Line Items]
Trading securities	39,000,000	68,000,000
Mezzanine | Subordinate Securities
Investment Holdings [Line Items]
Trading securities	538,489,000	610,819,000
Available-for-sale securities	13,687,000	36,407,000
Mezzanine | Other Third Party Securities
Investment Holdings [Line Items]
Trading securities	104,000,000	114,000,000
Mezzanine | Third Party Commercial/Multifamily Securities
Investment Holdings [Line Items]
Trading securities	395,000,000	429,000,000
Mezzanine | Re-preforming Loans Securities
Investment Holdings [Line Items]
Trading securities	30,000,000	11,000,000
Subordinate | Trading securities
Investment Holdings [Line Items]
Unpaid principal balance	302,000,000	476,000,000
Subordinate | Subordinate Securities
Investment Holdings [Line Items]
Trading securities	171,984,000	349,123,000
Available-for-sale securities	199,855,000	209,860,000
Subordinate | Other Third Party Securities
Investment Holdings [Line Items]
Trading securities	82,000,000	72,000,000
Subordinate | CRT Securities
Investment Holdings [Line Items]
Trading securities	90,000,000	277,000,000
Subordinate | Re-preforming Loans Securities
Investment Holdings [Line Items]
Trading securities	$ 76,000,000	$ 63,000,000

Real Estate Securities - Availa

Real Estate Securities - Available for Sale Securities by Collateral Type (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Investment Holdings [Line Items]
Available-for-sale securities	$ 239,334	$ 333,882
Mezzanine
Investment Holdings [Line Items]
Available-for-sale securities	13,687	36,407
Senior IO Securities
Investment Holdings [Line Items]
Available-for-sale securities	25,792	87,615
Subordinate Securities | Mezzanine
Investment Holdings [Line Items]
Available-for-sale securities	13,687	36,407
Subordinate Securities | Subordinate
Investment Holdings [Line Items]
Available-for-sale securities	$ 199,855	$ 209,860

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, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Principal balance	$ 304,077	$ 431,112
Credit reserve	(32,940)	(41,370)
Unamortized discount, net	(124,255)	(151,200)
Amortized cost	146,882	238,542
Gross unrealized gains	92,481	95,888
Gross unrealized losses	(29)	(548)
Carrying Value	239,334	333,882
Senior IO Securities
Debt Securities, Available-for-sale [Line Items]
Principal balance	26,331	91,736
Credit reserve	(533)	(7,790)
Unamortized discount, net	(10,427)	(18,460)
Amortized cost	15,371	65,486
Gross unrealized gains	10,450	22,178
Gross unrealized losses	(29)	(49)
Carrying Value	25,792	87,615
Mezzanine
Debt Securities, Available-for-sale [Line Items]
Principal balance	13,512	36,852
Credit reserve	0	0
Unamortized discount, net	(527)	(3,697)
Amortized cost	12,985	33,155
Gross unrealized gains	702	3,252
Gross unrealized losses	0	0
Carrying Value	13,687	36,407
Subordinate Securities
Debt Securities, Available-for-sale [Line Items]
Principal balance	264,234	302,524
Credit reserve	(32,407)	(33,580)
Unamortized discount, net	(113,301)	(129,043)
Amortized cost	118,526	139,901
Gross unrealized gains	81,329	70,458
Gross unrealized losses	0	(499)
Carrying Value	$ 199,855	$ 209,860

Real Estate Securities - Change

Real Estate Securities - Changes of Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Credit Reserve
Beginning balance	$ 41,370
Ending Balance	32,940	$ 41,370
Unamortized Discount, Net
Beginning balance	151,200
Ending Balance	124,255	151,200
Residential
Credit Reserve
Beginning balance	41,370	46,549
Amortization of net discount	0	0
Realized credit losses	(2,606)	(2,165)
Acquisitions	3,712	6,315
Sales, calls, other	(9,453)	(1,850)
Impairments	0	89
Transfers to (release of) credit reserves, net	(83)	(7,568)
Ending Balance	32,940	41,370
Unamortized Discount, Net
Beginning balance	151,200	183,753
Amortization of net discount	(7,921)	(14,098)
Realized credit losses	0	0
Acquisitions	1,910	2,716
Sales, calls, other	(21,017)	(28,739)
Impairments	0	0
Transfers to (release of) credit reserves, net	83	7,568
Ending Balance	$ 124,255	$ 151,200

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, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Less Than 12 Consecutive Months Amortized Cost	$ 0	$ 12,923
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	(499)
Less Than 12 Consecutive Months Unrealized Losses	0	12,424
12 Consecutive Months or Longer Amortized Cost	5,830	7,464
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(29)	(49)
12 Consecutive Months or Longer Unrealized Losses	$ 5,801	$ 7,415

Real Estate Securities - Summar

Real Estate Securities - Summary of Significant Valuation Assumptions for Available for Sale Securities (Details) - Prime	12 Months Ended
	Dec. 31, 2019
Minimum
Debt Securities, Available-for-sale [Line Items]
Prepayment rates	15.00%
Projected losses	1.00%
Maximum
Debt Securities, Available-for-sale [Line Items]
Prepayment rates	15.00%
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, 2019	Dec. 31, 2018	Dec. 31, 2017
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Balance at beginning of period	$ 18,652	$ 21,037	$ 28,261
Initial credit impairments	0	76	178
Subsequent credit impairments	0	0	47
Securities sold, or expected to sell	(77)	(1,218)	(4,898)
Securities with no outstanding principal at period end	(4,417)	(1,243)	(2,551)
Balance at End of Period	$ 14,158	$ 18,652	$ 21,037

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, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	$ 18,000
Total Realized Gains on Sales and Calls of AFS Securities, net	23,821	$ 27,041	$ 14,107
Sales
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	17,582	27,127	13,927
Gross realized losses	0	(129)	0
Calls
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	6,239	43	677
Gross realized losses	$ 0	$ 0	$ (497)

Other Investments - Summary of

Other Investments - Summary of Other Investments (Details) - USD ($) $ in Thousands		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Investment [Line Items]
Loan held-for-investment, amount		$ 0	$ 39,703
Other Investments	[1]	358,130	438,518
5 Arches, LLC
Investment [Line Items]
Carrying amount of equity method investments		0	10,754
Shared home appreciation options
Investment [Line Items]
Loan held-for-investment, amount			0
Mortgage servicing rights
Investment [Line Items]
Servicing asset, fair value		42,224	60,281	$ 63,598	$ 118,526
Multifamily loans
Investment [Line Items]
Loan held-for-investment, amount		39,802	0
Other
Investment [Line Items]
Loan held-for-investment, amount		30,001	0
Residential Loans
Investment [Line Items]
Servicing asset, fair value		169,204	300,468
Excess MSRs
Investment [Line Items]
Servicing asset, fair value		$ 31,814	$ 27,312
[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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , respectively. See Note 4 for further discussion.

Other Investments - Additional

Other Investments - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2019	Jan. 31, 2019	May 31, 2018	Feb. 28, 2019	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Investment [Line Items]
Commitment to fund partnership		$ 71,000
Equity method investment earnings																$ 11,000	$ 1,000
Investment fair value changes, net																35,500	(25,689)	$ 10,374
Interest income							$ 192,581	$ 150,117	$ 148,542	$ 131,041	$ 119,725	$ 99,397	$ 82,976	$ 76,619		622,281	378,717	248,057
Equity investment income																1,405	618	0
5 Arches, LLC
Investment [Line Items]
Minority interest, percentage					20.00%
Option to purchase additional equity, percent			80.00%
Light-Renovation Multifamily Loans
Investment [Line Items]
Commitment to fund partnership				$ 78,000
Commitment to fund partnership, funded amount	$ 41,000						41,000									41,000
Carrying amount of equity method investments	40,000						40,000									$ 40,000
Equity investment income															$ 1,000
5 Arches, LLC
Investment [Line Items]
Equity method investment earnings						$ 300											600
Payments to acquire equity method investment					$ 10,000
Option to purchase additional equity, term					1 year											1 year
Option to purchase additional equity, amount					$ 40,000
Amortization of intangible assets						$ 100											400
MSRs
Investment [Line Items]
Servicing asset, fair value	42,224	60,281					42,224				60,281					$ 42,224	60,281	$ 63,598	$ 118,526
Servicing assets	4,350,000	4,930,000					4,350,000				4,930,000					4,350,000	4,930,000
Shared home appreciation options
Investment [Line Items]
Investment fair value changes, net																842
Payments to acquire investments	43,000															45,000
Commitment To Fund Investment | Shared home appreciation options
Investment [Line Items]
Other commitment	7,000						7,000									7,000
Residential Loans
Investment [Line Items]
Servicing asset, fair value	169,204	300,468					169,204				300,468					169,204	300,468
Servicing asset, unpaid principal balance on underlying loan	7,940,000						7,940,000									7,940,000
Excess MSRs
Investment [Line Items]
Servicing asset, fair value	31,814	$ 27,312					31,814				$ 27,312					31,814	27,312
Investment fair value changes, net															(3,000)	2,000
Interest income															$ 8,000		1,000
Servicer advance financing
Investment [Line Items]
Collateral amounts	$ 152,000						$ 152,000									152,000
Investment fair value changes, net																$ 3,000	$ (1,000)

Other Investments - Servicing A

Other Investments - Servicing Advance Investments (Details) - Residential Loans - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Investment [Line Items]
Principal and interest advances	$ 15,081	$ 144,336
Escrow advances (taxes and insurance advances)	96,732	94,828
Corporate advances	39,769	47,614
Total Servicer Advance Receivables	$ 151,582	$ 286,778

Other Investments - Mortgage Se

Other Investments - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Servicing Asset at Fair Value, Amount [Roll Forward]
Additions	$ 868	$ 328	$ 7,387
Mortgage servicing rights
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance at beginning of period	60,281	63,598	118,526
Additions	868	328	8,026
Sales	0	(1,077)	(52,788)
Changes in fair value due to: Changes in assumptions	(10,659)	4,434	(1,088)
Changes in fair value due to: Other changes	(8,266)	(7,002)	(9,078)
Balance at End of Period	42,224	60,281	63,598
Servicing income	15,038	15,372	21,120
Cost of sub-servicer	(1,465)	(1,444)	(2,828)
Net servicing fee income	13,573	13,928	18,292
Market valuation changes of MSRs	(18,856)	(2,508)	(10,166)
Market valuation changes of associated derivatives	8,596	(4,734)	(568)
MSR reversal of provision for repurchases	208	390	302
MSR Income (Loss), Net	$ 3,521	$ 7,076	$ 7,860

Derivative Financial Instrume_3

Derivative Financial Instruments - Aggregate Fair Value and Notional Amount of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Derivative [Line Items]
Fair Value	$ (127,723)	$ (49,066)
Notional Amount	13,589,356	5,911,385
Derivative Liabilities
Derivative [Line Items]
Fair Value	(163,424)	(84,855)
Notional Amount	6,929,494	2,953,724
Derivative Assets
Derivative [Line Items]
Fair Value	35,701	35,789
Notional Amount	6,659,862	2,957,661
Interest rate agreements | Derivative Liabilities
Derivative [Line Items]
Fair Value	(97,235)	(36,416)
Notional Amount	2,314,300	1,742,000
Interest rate agreements | Derivative Liabilities | Cash Flow Hedging
Derivative [Line Items]
Fair Value	(51,530)	(34,492)
Notional Amount	139,500	139,500
Interest rate agreements | Derivative Assets
Derivative [Line Items]
Fair Value	17,095	28,211
Notional Amount	1,399,000	2,106,500
TBAs
Derivative [Line Items]
Notional Amount	6,610,000	1,460,000
TBAs | Derivative Liabilities
Derivative [Line Items]
Fair Value	(13,359)	(13,215)
Notional Amount	4,160,000	935,000
TBAs | Derivative Assets
Derivative [Line Items]
Fair Value	5,755	4,665
Notional Amount	2,445,000	520,000
Interest rate futures
Derivative [Line Items]
Notional Amount	226,000
Interest rate futures | Derivative Liabilities
Derivative [Line Items]
Fair Value	(10)	0
Notional Amount	12,300	0
Interest rate futures | Derivative Assets
Derivative [Line Items]
Fair Value	777	0
Notional Amount	213,700	0
Swaptions | Derivative Assets
Derivative [Line Items]
Fair Value	1,925	0
Notional Amount	1,065,000	0
Loan purchase and interest rate lock commitments | Derivative Liabilities
Derivative [Line Items]
Fair Value	(1,290)	(732)
Notional Amount	303,394	137,224
Loan purchase and interest rate lock commitments | Derivative Assets
Derivative [Line Items]
Fair Value	10,149	2,913
Notional Amount	$ 1,537,162	$ 331,161

Derivative Financial Instrume_4

Derivative Financial Instruments - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)counterparty	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Derivative [Line Items]
Notional amount	$ 13,589,356	$ 5,911,385
Net unrealized (loss) gain on interest rate agreements		8,908	$ 1,022
Stockholders' equity attributable to parent	$ 1,827,231	1,348,794	1,212,287	$ 1,149,428
Number of counterparties | counterparty	9
Net Unrealized Losses on Interest Rate Agreements Accounted for as Cash Flow Hedges
Derivative [Line Items]
Stockholders' equity attributable to parent	$ (50,939)	(34,045)
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)
Derivative Liabilities
Derivative [Line Items]
Notional amount	6,929,494	2,953,724
Mortgage Banking Activities, Net
Derivative [Line Items]
Changes in fair value of assets	69,326	57,000	51,844
LPCs, IRLCs, and FSCs | Mortgage Banking Activities, Net
Derivative [Line Items]
Changes in fair value of assets	62,000	(1,000)	38,000
Interest Rate Contract
Derivative [Line Items]
Notional amount	4,780,000	3,850,000
TBAs
Derivative [Line Items]
Notional amount	6,610,000	1,460,000
TBAs | Derivative Liabilities
Derivative [Line Items]
Notional amount	4,160,000	935,000
Interest rate futures
Derivative [Line Items]
Notional amount	226,000
Interest rate futures | Derivative Liabilities
Derivative [Line Items]
Notional amount	12,300	0
Residential and Commercial Loans
Derivative [Line Items]
Valuation adjustments on derivatives	(134,000)	40,000	(31,000)
Interest rate agreements | Cash Flow Hedging
Derivative [Line Items]
Valuation adjustments on derivatives	(17,000)	9,000	$ 1,000
Interest rate agreements | Derivative Liabilities
Derivative [Line Items]
Notional amount	2,314,300	1,742,000
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, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative [Line Items]
Total interest expense	$ (147,708)	$ (116,604)	$ (116,220)	$ (99,276)	$ (84,961)	$ (64,351)	$ (48,213)	$ (41,514)	$ (479,808)	$ (239,039)	$ (108,816)
Cash Flow Hedging | Interest Rate Contract
Derivative [Line Items]
Net interest expense on cash flows hedges									(2,847)	(3,228)	(4,602)
Realized net losses reclassified from other comprehensive income									0	0	(45)
Total interest expense									$ (2,847)	$ (3,228)	$ (4,647)

Other Assets and Liabilities -

Other Assets and Liabilities - Summary of Other Assets (Details) - USD ($) $ in Thousands		Dec. 31, 2019	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Margin receivable		$ 209,776	$ 100,773
FHLBC stock		43,393	43,393
Pledged collateral		32,945	42,433
Investment receivable		23,330	6,959
Right-of-use asset		11,866	0
REO		9,462	3,943
Fixed assets and leasehold improvements		4,901	5,106
Other		12,590	15,218
Total Other Assets	[1]	348,263	$ 217,825
Fixed assets basis		11,000
Fixed assets, accumulated depreciation		$ 7,000
[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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , 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, 2019	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Accrued compensation		$ 33,888	$ 19,769
Contingent consideration		28,484	0
Guarantee obligations		14,009	16,711
Lease liability		13,443	0
Payable to minority partner		13,189	14,331
Residential bridge loan holdbacks		10,682	0
Accrued taxes payable		5,268	423
Deferred tax liabilities		5,152	9,022
Residential loan and MSR repurchase reserve		4,268	4,189
Legal reserve		2,000	2,000
Margin payable		1,700	835
Other		14,155	11,439
Accrued Liabilities	[1]	$ 146,238	$ 78,719
[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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , respectively. See Note 4 for further discussion.

Other Assets and Liabilities _3

Other Assets and Liabilities - Additional Information (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2019USD ($)property	Dec. 31, 2018USD ($)partnershipproperty	Dec. 31, 2019USD ($)property	Dec. 31, 2018USD ($)partnershipproperty
Other Assets and Other Liabilities [Line Items]
Real estate owned (REO)	$ 9,462	$ 3,943	$ 9,462	$ 3,943
REO liquidations			5,000
Unrealized gain on REO from market value adjustments			1,000
Number of partnerships consolidated | partnership		2		2
Payable to minority partner	13,189	$ 14,331	13,189	$ 14,331
Co-investors gains (losses)			1,000	$ (100)
Legacy Sequoia
Other Assets and Other Liabilities [Line Items]
Real estate owned (REO)	$ 500		$ 500
Number of REO properties recorded on balance sheet | property	4	13	4	13
Amount related to transfers into REO			$ 300
Freddie Mac SLST
Other Assets and Other Liabilities [Line Items]
Real estate owned (REO)	$ 400		$ 400
Number of REO properties recorded on balance sheet | property	3		3
Amount related to transfers into REO			$ 500
CAFL
Other Assets and Other Liabilities [Line Items]
Real estate owned (REO)	$ 2,000		$ 2,000
Number of REO properties recorded on balance sheet | property	2		2
Amount related to transfers into REO	$ 3,000
Debt Securities | Bridge Loan
Other Assets and Other Liabilities [Line Items]
Real estate owned (REO)	$ 7,000		$ 7,000
Number of REO properties recorded on balance sheet | property	4		4
Amount related to transfers into REO			$ 8,000

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, 2019USD ($)facility	Dec. 31, 2018USD ($)facility
Short-term Debt [Line Items]
Outstanding Balance	[1],[2]	$ 2,329,145,000	$ 2,400,279,000
Line of Credit
Short-term Debt [Line Items]
Number of Facilities | facility		22	17
Outstanding Balance		$ 2,176,591,000	$ 1,937,920,000
Line of Credit | Residential loan warehouse
Short-term Debt [Line Items]
Number of Facilities | facility		4	4
Outstanding Balance		$ 185,894,000	$ 860,650,000
Limit		$ 1,425,000,000	$ 1,425,000,000
Weighted Average Interest Rate		3.23%	4.10%
Weighted Average Days Until Maturity		69 days	178 days
Line of Credit | Business purpose residential loans
Short-term Debt [Line Items]
Number of Facilities | facility		8	4
Outstanding Balance		$ 814,118,000	$ 88,380,000
Limit		$ 1,475,000,000	$ 480,000,000
Weighted Average Interest Rate		4.11%	4.99%
Weighted Average Days Until Maturity		489 days	594 days
Line of Credit | Real estate securities repo
Short-term Debt [Line Items]
Number of Facilities | facility		10	9
Outstanding Balance		$ 1,176,579,000	$ 988,890,000
Limit		$ 0	$ 0
Weighted Average Interest Rate		2.94%	3.47%
Weighted Average Days Until Maturity		23 days	26 days
Servicer advance financing
Short-term Debt [Line Items]
Number of Facilities | facility		1	1
Outstanding Balance		$ 152,554,000	$ 262,740,000
Limit		$ 400,000,000	$ 350,000,000
Weighted Average Interest Rate		3.56%	4.32%
Weighted Average Days Until Maturity		335 days	333 days
Convertible notes, net
Short-term Debt [Line Items]
Outstanding Balance			$ 199,619,000
Limit
Weighted Average Interest Rate			5.63%
Weighted Average Days Until Maturity			319 days
[1]	Includes $201 million of convertible notes at December 31, 2018, 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 the date 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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , respectively. See Note 4 for further discussion.

Short-Term Debt - Collateral fo

Short-Term Debt - Collateral for Short-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Short-term Debt [Line Items]
Total real estate securities owned	$ 1,491,986	$ 1,221,045
Total Collateral for Short-Term Debt	2,682,114	2,281,581
On balance sheet
Short-term Debt [Line Items]
On balance sheet	618,881	844,465
Sequoia Choice | Sequoia Securities | Short Term Borrowing Agreement
Short-term Debt [Line Items]
Trading securities pledged as collateral	111,341	130,139
Freddie Mac SLST | Sequoia Securities | Short Term Borrowing Agreement
Short-term Debt [Line Items]
Trading securities pledged as collateral	381,640	228,920
Freddie Mac K-Series | Sequoia Securities | Short Term Borrowing Agreement
Short-term Debt [Line Items]
Trading securities pledged as collateral	252,284	17,521
CAFL | Sequoia Securities | Short Term Borrowing Agreement
Short-term Debt [Line Items]
Trading securities pledged as collateral	127,840	0
Residential Loans
Short-term Debt [Line Items]
Loan pledged as collateral	201,949	935,132
Business purpose residential loans
Short-term Debt [Line Items]
Loan pledged as collateral	$ 988,179	$ 125,404

Short-Term Debt - Additional In

Short-Term Debt - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Nov. 30, 2019	Nov. 30, 2014
Short-term Debt [Line Items]
Average balance of short-term debt	$ 1,970,000,000	$ 1,510,000,000
Accrued interest payable on short-term debt	6,000,000	4,000,000
Convertible notes		201,000,000	$ 201,000,000
Committed line of credit	10,000,000
Collateral at fair value	3,000,000
Committed line of credit with financial institutions, outstanding	0	0
Exchangeable senior notes due 2019 | Convertible notes
Short-term Debt [Line Items]
Debt instrument interest rate				5.625%
Deferred debt issuance costs		$ 1,000,000
Servicer advance financing
Short-term Debt [Line Items]
Accrued interest payable on short-term debt	200,000
Unamortized capitalized commitment costs	1,000,000
Residential Loans
Short-term Debt [Line Items]
Servicing asset at fair value, amount	$ 176,000,000

Short-Term Debt - Remaining Mat

Short-Term Debt - Remaining Maturities of Short Term Debt (Details) - USD ($) $ in Thousands		Dec. 31, 2019	Dec. 31, 2018
Short-term Debt [Line Items]
Short-term debt	[1],[2]	$ 2,329,145	$ 2,400,279
Within 30 days
Short-term Debt [Line Items]
Short-term debt		873,138
31 to 90 days
Short-term Debt [Line Items]
Short-term debt		462,971
Over 90 days
Short-term Debt [Line Items]
Short-term debt		993,036
Line of Credit
Short-term Debt [Line Items]
Short-term debt		2,176,591	1,937,920
Line of Credit | Held-for-sale residential loans
Short-term Debt [Line Items]
Short-term debt		185,894	860,650
Line of Credit | Business purpose residential loans
Short-term Debt [Line Items]
Short-term debt		814,118	88,380
Line of Credit | Real estate securities
Short-term Debt [Line Items]
Short-term debt		1,176,579
Line of Credit | Within 30 days
Short-term Debt [Line Items]
Short-term debt		873,138
Line of Credit | Within 30 days | Held-for-sale residential loans
Short-term Debt [Line Items]
Short-term debt		49,084
Line of Credit | Within 30 days | Business purpose 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		824,054
Line of Credit | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		462,971
Line of Credit | 31 to 90 days | Held-for-sale residential loans
Short-term Debt [Line Items]
Short-term debt		110,446
Line of Credit | 31 to 90 days | Business purpose residential loans
Short-term Debt [Line Items]
Short-term debt		0
Line of Credit | 31 to 90 days | Real estate securities
Short-term Debt [Line Items]
Short-term debt		352,525
Line of Credit | Over 90 days
Short-term Debt [Line Items]
Short-term debt		840,482
Line of Credit | Over 90 days | Held-for-sale residential loans
Short-term Debt [Line Items]
Short-term debt		26,364
Line of Credit | Over 90 days | Business purpose residential loans
Short-term Debt [Line Items]
Short-term debt		814,118
Line of Credit | Over 90 days | Real estate securities
Short-term Debt [Line Items]
Short-term debt		0
Servicer advance financing
Short-term Debt [Line Items]
Short-term debt		152,554	$ 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		$ 152,554
[1]	Includes $201 million of convertible notes at December 31, 2018, 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 the date 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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , 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) - Asset-backed securities issued $ in Thousands	Dec. 31, 2019USD ($)series	Dec. 31, 2018USD ($)series
Debt Instrument [Line Items]
Market valuation adjustments	$ 197,110	$ (58,290)
Total FHLBC Borrowings	10,515,475	5,410,073
Certificates with principal balance
Debt Instrument [Line Items]
Long-term debt, gross	9,962,253	5,309,564
Interest-only certificates
Debt Instrument [Line Items]
Long-term debt, gross	356,112	158,799
Legacy Sequoia
Debt Instrument [Line Items]
Market valuation adjustments	(18,873)	(29,753)
Total FHLBC Borrowings	$ 402,465	$ 512,240
Number of series | series	20	20
Legacy Sequoia | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	1.94%	1.36%
Legacy Sequoia | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	3.26%	3.60%
Legacy Sequoia | Certificates with principal balance
Debt Instrument [Line Items]
Long-term debt, gross	$ 420,056	$ 540,456
Legacy Sequoia | Interest-only certificates
Debt Instrument [Line Items]
Long-term debt, gross	1,282	1,537
Sequoia Choice
Debt Instrument [Line Items]
Market valuation adjustments	40,965	20,590
Total FHLBC Borrowings	$ 2,037,198	$ 1,885,010
Number of series | series	9	6
Sequoia Choice | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	4.40%	4.46%
Sequoia Choice | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	5.05%	4.97%
Sequoia Choice | Certificates with principal balance
Debt Instrument [Line Items]
Long-term debt, gross	$ 1,979,719	$ 1,838,758
Sequoia Choice | Interest-only certificates
Debt Instrument [Line Items]
Long-term debt, gross	16,514	25,662
Freddie Mac SLST
Debt Instrument [Line Items]
Market valuation adjustments	45,349	89
Total FHLBC Borrowings	$ 1,918,322	$ 993,748
Range of weighted average interest rates, by series	3.50%	3.51%
Number of series | series	2	1
Freddie Mac SLST | Certificates with principal balance
Debt Instrument [Line Items]
Long-term debt, gross	$ 1,842,682	$ 993,659
Freddie Mac SLST | Interest-only certificates
Debt Instrument [Line Items]
Long-term debt, gross	30,291	0
Freddie Mac K-Series
Debt Instrument [Line Items]
Market valuation adjustments	93,559	(49,216)
Total FHLBC Borrowings	$ 4,156,239	$ 2,019,075
Number of series | series	5	3
Freddie Mac K-Series | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	3.35%	3.39%
Freddie Mac K-Series | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	4.35%	4.08%
Freddie Mac K-Series | Certificates with principal balance
Debt Instrument [Line Items]
Long-term debt, gross	$ 3,844,789	$ 1,936,691
Freddie Mac K-Series | Interest-only certificates
Debt Instrument [Line Items]
Long-term debt, gross	217,891	131,600
CAFL
Debt Instrument [Line Items]
Market valuation adjustments	36,110	0
Total FHLBC Borrowings	$ 2,001,251	$ 0
Number of series | series	10	0
CAFL | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	3.25%
CAFL | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	5.36%
CAFL | Certificates with principal balance
Debt Instrument [Line Items]
Long-term debt, gross	$ 1,875,007	$ 0
CAFL | Interest-only certificates
Debt Instrument [Line Items]
Long-term debt, gross	$ 90,134	$ 0

Asset-Backed Securities Issue_3

Asset-Backed Securities Issued - Additional Information (Details)	12 Months Ended
	Dec. 31, 2019
Contractual maturities of over five years | Asset-backed Securities
Debt Instrument [Line Items]
Contractual maturities of ABS (in years)	5 years

Asset-Backed Securities Issue_4

Asset-Backed Securities Issued - Accrued Interest Payable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	$ 33,686	$ 16,897
Freddie Mac SLST
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	5,374	2,907
Freddie Mac K-Series
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	12,887	6,239
CAFL
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	7,298	0
Asset-backed securities issued | Legacy Sequoia
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	395	571
Asset-backed securities issued | Sequoia Choice
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	$ 7,732	$ 7,180

Asset-Backed Securities Issue_5

Asset-Backed Securities Issued - Summary of Carrying Value Components of Collateral for Asset-Backed Securities Issued and Outstanding (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	$ 11,711,417	$ 5,992,049
Residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	5,066,568	3,822,009
Business purpose residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	2,192,552
Multifamily loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	4,408,524	2,144,598
Restricted cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	170	1,168
Accrued interest receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	40,903	20,331
REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	2,700	3,943
Legacy Sequoia
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	409,148	524,869
Legacy Sequoia | Residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	407,890	519,958
Legacy Sequoia | Business purpose residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0
Legacy Sequoia | Multifamily loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	0
Legacy Sequoia | Restricted cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	143	146
Legacy Sequoia | Accrued interest receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	655	822
Legacy Sequoia | REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	460	3,943
Sequoia Choice
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	2,301,314	2,089,392
Sequoia Choice | Residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	2,291,463	2,079,382
Sequoia Choice | Business purpose residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0
Sequoia Choice | Multifamily loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	0
Sequoia Choice | Restricted cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	27	1,022
Sequoia Choice | Accrued interest receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	9,824	8,988
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	2,374,973	1,226,595
Freddie Mac SLST | Residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	2,367,215	1,222,669
Freddie Mac SLST | Business purpose residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0
Freddie Mac SLST | Multifamily loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	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	7,313	3,926
Freddie Mac SLST | REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	445	0
Freddie Mac K-Series
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	4,422,063	2,151,193
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 | Business purpose residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0
Freddie Mac K-Series | Multifamily loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	4,408,524	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	13,539	6,595
Freddie Mac K-Series | REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	0
CAFL
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	2,203,919	0
CAFL | Residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	0
CAFL | Business purpose residential loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	2,192,552
CAFL | Multifamily loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	0
CAFL | Restricted cash
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	0	0
CAFL | Accrued interest receivable
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	9,572	0
CAFL | REO
Financial Instruments Owned and Pledged as Collateral [Line Items]
Collateral for ABS Issued	$ 1,795	$ 0

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details)		Dec. 31, 2019USD ($)$ / shares	Dec. 31, 2018USD ($)	Sep. 30, 2019USD ($)	Jun. 30, 2018USD ($)$ / shares	Aug. 31, 2017USD ($)$ / shares	Jan. 31, 2016	Nov. 30, 2014USD ($)$ / shares	Dec. 31, 2019USD ($)$ / shares	Dec. 31, 2016USD ($)	Nov. 30, 2019USD ($)	Dec. 31, 2013USD ($)
Debt Instrument [Line Items]
FHLB transition period							5 years
Committed line of credit with financial institutions, outstanding		$ 0	$ 0						$ 0
Federal home loan bank stock		43,393,000	43,393,000						43,393,000
Accrued interest payable		6,000,000	4,000,000						6,000,000
Convertible notes			201,000,000								$ 201,000,000
Notional amount		13,589,356,000	5,911,385,000						13,589,356,000
Accrued interest payable	[1]	60,655,000	42,528,000						60,655,000
Convertible notes | Exchangeable Senior Notes Due 2025
Debt Instrument [Line Items]
Debt instrument interest rate				5.75%
Unamortized deferred issuance costs		6,000,000							6,000,000
Convertible notes		$ 201,000,000		$ 201,000,000					$ 201,000,000
Net proceeds from issuance of convertible debt				$ 195,000,000
Interest expense yield				6.30%
Convertible debt, conversion ratio		0.0551967
Convertible senior notes conversion per share (in dollars per share) | $ / shares		$ 18.12							$ 18.12
Accrued interest payable		$ 3,000,000							$ 3,000,000
Convertible notes | Senior Notes Due 2024
Debt Instrument [Line Items]
Debt instrument interest rate					5.625%
Unamortized deferred issuance costs		4,000,000							4,000,000
Convertible notes		200,000,000			$ 200,000,000				200,000,000
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		5,000,000							5,000,000
Percent of par at issuance					99.50%
Debt discount		1,000,000							1,000,000
Convertible notes | Senior Notes Due 2023
Debt Instrument [Line Items]
Debt instrument interest rate						4.75%
Unamortized deferred issuance costs		5,000,000							5,000,000
Convertible notes		245,000,000				$ 245,000,000			245,000,000
Net proceeds from issuance of convertible debt						$ 238,000,000
Interest expense yield						5.30%
Convertible debt, conversion ratio						0.0543346
Convertible senior notes conversion per share (in dollars per share) | $ / shares						$ 18.40
Accrued interest payable		4,000,000							4,000,000
Convertible notes | Exchangeable senior notes due 2019
Debt Instrument [Line Items]
Debt instrument interest rate								5.625%
Convertible notes								$ 205,000,000
Net proceeds from issuance of convertible debt								$ 198,000,000
Interest expense yield								6.30%
Convertible debt, conversion ratio								0.0465404
Convertible senior notes conversion per share (in dollars per share) | $ / shares								$ 21.49
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
Trust Preferred Securities
Debt Instrument [Line Items]
Long-term debt, net		100,000,000							$ 100,000,000
Interest expense yield on trust preferred securities and subordinated notes									6.90%
Subordinated Notes
Debt Instrument [Line Items]
Long-term debt, net		40,000,000							$ 40,000,000
Trust Preferred Securities and Subordinated Notes
Debt Instrument [Line Items]
Accrued interest payable		1,000,000	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 | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate									2.25%
Affiliated Entity | Long Term Non Market To market Recourse Debt Financing
Debt Instrument [Line Items]
Debt instrument interest rate				4.21%
Long-term debt, gross		185,000,000							$ 185,000,000
Unamortized deferred issuance costs		1,000,000							1,000,000
Long-term debt, net		184,000,000							184,000,000
Pledged assets real estate pledged as collateral, at fair value		250,000,000							250,000,000
Affiliated Entity | Sequoia Choice | Long Term Non Market To market Recourse Debt Financing
Debt Instrument [Line Items]
Pledged assets real estate pledged as collateral, at fair value		125,000,000							$ 125,000,000
FHLB Chicago
Debt Instrument [Line Items]
Interest rate margin reset period									91 days
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							2,000,000,000
Committed line of credit with financial institutions, outstanding		2,000,000,000							2,000,000,000
Outstanding FHLB advances		$ 2,000,000,000	$ 2,000,000,000						$ 2,000,000,000
Weighted average interest rate		1.88%	2.52%						1.88%
Weighted average maturity (in years)		6 years	7 years
Long-term debt, net		$ 1,999,999,000							$ 1,999,999,000
FHLB Chicago | Redwood | Held-for sale residential loans | Residential Real Estate
Debt Instrument [Line Items]
Residential mortgage loans securing FHLB advances		2,100,000,000							2,100,000,000
FHLB Chicago | Redwood | Held-for sale residential loans | Equity Securities
Debt Instrument [Line Items]
Residential mortgage loans securing FHLB advances		39,000,000							39,000,000
FHLB Chicago | Redwood | Held-for sale residential loans | Restricted cash
Debt Instrument [Line Items]
Residential mortgage loans securing FHLB advances		59,000,000							59,000,000
FHLB Chicago | Redwood | Single-family rental loans held-for-investment | Residential Real Estate
Debt Instrument [Line Items]
Residential mortgage loans securing FHLB advances		$ 211,000,000							$ 211,000,000
[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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , respectively. See Note 4 for further discussion.

Long-Term Debt - Debt maturitie

Long-Term Debt - Debt maturities (Details) - FHLB Subsidiary - FHLB Chicago $ in Thousands	Dec. 31, 2019USD ($)
Debt Instrument [Line Items]
2024	$ 470,171
2025	887,639
2026	642,189
Total FHLBC Borrowings	$ 1,999,999

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Thousands	Dec. 31, 2019USD ($)lease	Dec. 31, 2018USD ($)	Jul. 15, 2010plaintiff	Dec. 31, 2018USD ($)partnership	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)loanleasecertificaterepurchase_request	Dec. 31, 2018USD ($)loanrepurchase_request	Dec. 31, 2017USD ($)loan	Dec. 31, 2007certificate	Dec. 31, 2004certificate	Dec. 31, 2007certificate	Mar. 01, 2019USD ($)	Jan. 01, 2019USD ($)lease	May 31, 2018USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 23, 2009
Loss Contingencies [Line Items]
Lessee, number of leases | lease	8					8
Future lease commitments with expiration date	$ 16,000					$ 16,000
Operating lease expense						3,000
Operating lease expense							$ 2,000	$ 2,000
Unamortized leasehold improvements	3,000					3,000
Leasehold amortization expense (less than)						400	200	200
Present value of remaining lease payments	16,132					$ 16,132							$ 16,000
Number of leases noncancelable | lease													4
Number of leases | lease						1
Number of new leases | lease						5
Lease liability	13,443	$ 0		$ 0		$ 13,443	0
Right-of-use asset	$ 11,866	0		$ 0		$ 11,866	0
Number of leases without implicit interest rate | lease						0
Weighted average remaining lease term	7 years					7 years
Discount rate	5.30%					5.30%
Number of partnerships, committed to fund | partnership				2
Commitment to fund partnership		71,000
Contingent consideration	$ 28,484	0		$ 0		$ 28,484	0
Risk share income						3,522	3,613	$ 3,194
Principal amount outstanding on loans securitized	524,928	1,034,284		1,034,284		524,928	1,034,284
Guarantee obligations	14,009	16,711		16,711		14,009	16,711
Guarantee obligation, credit reserve	5,000					5,000
SPE, assets	48,000	47,000		47,000		48,000	47,000
SPE, liabilities	14,000	17,000		17,000		14,000	17,000
Residential loan and MSR repurchase reserve	4,268	4,189		4,189		$ 4,268	$ 4,189
Residential loans repurchase requests | repurchase_request						15	11
Residential loans, number of loans repurchased | loan						0	2	1
Residential loans repurchase provision (reversal)						$ 100	$ 700	$ 300
Residential loans repurchased during period						0	0	200
Aggregate amount of loss contingency reserves	2,000	2,000		2,000		$ 2,000	2,000
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	525,000	$ 1,030,000		$ 1,030,000		$ 525,000	1,030,000
Loans held as assets amount in foreclosure	2,000					2,000
Other Income
Loss Contingencies [Line Items]
Risk share income						4,000	4,000	3,000
Mortgage Banking And Investment Activities
Loss Contingencies [Line Items]
Market valuation changes in fair value of guarantee asset						200	$ 400	$ 1,000
Guarantee Obligations
Loss Contingencies [Line Items]
Original principal balance of loans sold subject to risk sharing agreement															$ 3,190,000	$ 3,190,000
Potential future payments on risk sharing agreements	44,000					44,000
Principal amount outstanding on loans securitized	$ 1,550,000					$ 1,550,000
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					$ 7,000
Residential | Sequoia Entities | FHLB Seattle
Loss Contingencies [Line Items]
Statutory interest rate per annum																	8.00%
Original principal amount of securities	133,000					133,000
Debt instrument principal payment amount						128,000
Debt instrument interest payment amount						12,000
Residential | Sequoia Entities | Schwab
Loss Contingencies [Line Items]
Original principal amount of securities	15,000					15,000
Principal balance of securities	14,000					14,000
Debt instrument interest amount	1,000					1,000
Financial Guarantee
Loss Contingencies [Line Items]
Commitment to fund partnership	37,000
Guarantor obligations carrying value	100					100
Guarantee obligations expenses	135,000					135,000
Accounting Standards Update 2016-02
Loss Contingencies [Line Items]
Lease liability	13,000					13,000
Right-of-use asset	12,000					12,000
Commitment To Fund Residential Bridge Loan
Loss Contingencies [Line Items]
Commitments to fund temporary advances	173,000					173,000
Commitment To Fund Temporary Advances On Residential Bridge Loans
Loss Contingencies [Line Items]
Commitments to fund temporary advances	56,000					56,000
Shared home appreciation options
Loss Contingencies [Line Items]
Payments to acquire investments	43,000					45,000
Shared home appreciation options | Commitment To Fund Investment
Loss Contingencies [Line Items]
Commitments to fund temporary advances	7,000					7,000
5 Arches, LLC
Loss Contingencies [Line Items]
Contingent consideration maximum amount												$ 27,000		$ 29,000
Contingent consideration	$ 28,000					$ 28,000						$ 24,621
Contingent consideration expense					$ 3,000

Commitments and Contingencies_2

Commitments and Contingencies - Future Lease Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Leases [Abstract]
2020	$ 3,395
2021	2,275
2022	1,706
2023	1,520
2024	1,558
2025 and thereafter	5,678
Total Lease Commitments	16,132	$ 16,000
Less: Imputed interest	(2,689)
Lease Liability	$ 13,443		$ 0

Equity - Changes to Accumulated

Equity - Changes to Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	$ 1,348,794	$ 1,212,287	$ 1,149,428
Total other comprehensive (loss) income	(19,784)	(23,951)	13,395
Balance at End of Period	1,827,231	1,348,794	1,212,287
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	95,342	128,201
Other comprehensive income (loss) before reclassifications	17,077	(7,298)
Amounts reclassified from other accumulated comprehensive income	(19,967)	(25,561)
Total other comprehensive (loss) income	(2,890)	(32,859)
Balance at End of Period	92,452	95,342	128,201
Other comprehensive income (loss). before reclassification adjustments, tax benefit (provision)		2,000
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	(34,045)
Other comprehensive income (loss) before reclassifications	(16,894)
Amounts reclassified from other accumulated comprehensive income	0
Total other comprehensive (loss) income	(16,894)
Balance at End of Period	(50,939)	(34,045)
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	$ (34,045)	(42,953)
Other comprehensive income (loss) before reclassifications		8,908
Amounts reclassified from other accumulated comprehensive income		0
Total other comprehensive (loss) income		8,908
Balance at End of Period		$ (34,045)	$ (42,953)

Equity - Reclassifications out

Equity - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investment fair value changes, net	$ (35,500,000)	$ 25,689,000	$ (10,374,000)
Realized gains, net	(23,821,000)	(27,041,000)	(13,355,000)
Provision for income taxes	7,440,000	11,088,000	11,752,000
Net income before provision for income taxes	(176,623,000)	(130,688,000)	$ (152,158,000)
Other than temporary impairments	0	1,000,000
Other-than-temporary Impairment Loss, Debt Securities, Portion Recognized in Earnings		100,000
Accumulated other comprehensive income, other-than-temporary impairments		1,000,000
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains on Available-for-Sale Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investment fair value changes, net	0	89,000
Realized gains, net	(19,967,000)	(27,178,000)
Provision for income taxes	0	1,528,000
Net income before provision for income taxes	$ (19,967,000)	$ (25,561,000)

Equity - Additional Information

Equity - Additional Information (Details) - USD ($)	Oct. 15, 2019	Sep. 03, 2019	Jan. 29, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Feb. 28, 2018
Stockholders Equity Note [Line Items]
Issuance of common stock (in shares)		14,375,000	11,500,000			7,187,500
Net proceeds from issuance of common stock					$ 450,710,000	$ 142,601,000	$ 302,000
Outstanding for future offerings, amount				$ 117,000,000		117,000,000
Issuance of common stock		$ 228,000,000	$ 177,000,000		442,172,000	142,228,000
Share-based compensation, vesting period (in years)	2 years
Direct stock purchase and dividend reinvestment plan					6,307,000	$ 1,706,000
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
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					10,051	7,230	5,843
ATM Offerings | Common Stock
Stockholders Equity Note [Line Items]
Aggregate value of common stock issuable				$ 150,000,000		$ 150,000,000
Issuance of common stock (in shares)				1,550,819	2,259,758
Net proceeds from issuance of common stock					$ 36,000,000	$ 25,000,000
Outstanding for future offerings, amount					$ 88,000,000
Common Stock
Stockholders Equity Note [Line Items]
Issuance of common stock (in shares)					28,724,645	8,738,319
Issuance of common stock					$ 288,000	$ 88,000
Direct stock purchase and dividend reinvestment plan (in shares)					399,838	113,004
Direct stock purchase and dividend reinvestment plan					$ 4,000	$ 1,000
CoreVest LLC
Stockholders Equity Note [Line Items]
Restricted stock awards (in shares)	588,260
Shares issued (in usd per share)	$ 16.48
Restricted stock awards	$ 10,000,000

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, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Net income attributable to Redwood	$ 49,143	$ 34,310	$ 31,266	$ 54,464	$ (913)	$ 40,921	$ 32,747	$ 46,845	$ 169,183	$ 119,600	$ 140,406
Less: Dividends and undistributed earnings allocated to participating securities									(4,797)	(3,754)	(3,632)
Net income allocated to common shareholders									$ 164,386	$ 115,846	$ 136,774
Basic weighted average common shares outstanding (in shares)									101,120,744	78,724,912	76,792,957
Basic earnings per common share (in dollars per share)	$ 0.42	$ 0.33	$ 0.31	$ 0.57	$ (0.02)	$ 0.49	$ 0.42	$ 0.60	$ 1.63	$ 1.47	$ 1.78
Less: Dividends and undistributed earnings allocated to participating securities									$ (5,273)	$ (4,283)	$ (3,836)
Add back: Interest expense on convertible notes for the period, net of tax									36,212	32,653	26,898
Net income allocated to common shareholders									$ 200,122	$ 147,970	$ 163,468
Weighted average common shares outstanding (in shares)									101,147,225	78,724,912	76,792,957
Net effect of dilutive equity awards (in shares)									251,100	189,120	185,383
Net effect of assumed convertible notes conversion to common shares (in shares)									35,382,269	31,113,738	24,996,668
Diluted weighted average common shares outstanding (in shares)									136,780,594	110,027,770	101,975,008
Diluted earnings per common share (in dollars per share)	$ 0.38	$ 0.31	$ 0.30	$ 0.49	$ (0.02)	$ 0.42	$ 0.38	$ 0.50	$ 1.46	$ 1.34	$ 1.60

Equity Compensation Plans - Add

Equity Compensation Plans - Additional Information (Details) $ / shares in Units, $ in Thousands	Oct. 15, 2019	Dec. 31, 2018USD ($)$ / sharesshares	May 31, 2018executive$ / sharesshares	Dec. 31, 2017$ / shares	May 31, 2014	Dec. 31, 2018USD ($)$ / sharesshares	Dec. 31, 2017$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares	Dec. 31, 2018USD ($)$ / sharesshares	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016shares
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		3,637,480	4,616,776
Unrecognized compensation cost | $		$ 25,122				$ 25,122		$ 32,328	$ 25,122
Weighted average amortization period remaining for equity awards (in years)								2 years
Equity compensation expense | $								$ 13,402	$ 12,388	$ 10,141
Share-based compensation, vesting period (in years)	2 years
Shares of common stock to be purchased in aggregate for all employees (in shares)								600,000
Number of shares purchased by employees (in shares)								430,772
Number of additional shares authorized									200,000
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost | $								$ 2,000
Weighted average amortization period remaining for equity awards (in years)								2 years
Equity compensation expense | $								$ 2,000	$ 2,000	$ 1,000
Number of stock awards granted (in shares)								0	168,537	134,364
Number of stock awards forfeited (in shares)								0	7,470	19,444
Granted (in dollars per share) | $ / shares								$ 0	$ 14.71	$ 16.52
Number of stock awards vested (in shares)								118,136	83,968	61,928
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost | $								$ 4,000
Weighted average amortization period remaining for equity awards (in years)								2 years
Equity compensation expense | $								$ 1,000	$ 100
Number of stock awards granted (in shares)								270,297	4,876	0
Number of stock awards forfeited (in shares)								0	0	0
Granted (in dollars per share) | $ / shares								$ 15.66	$ 15.38	$ 0
Number of stock awards vested (in shares)								0	0	0
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost | $								$ 18,000
Equity compensation expense | $								$ 8,000	$ 8,000	$ 6,000
Unvested outstanding stock awards (in units)		1,155,098				1,155,098		1,344,743	1,155,098
Weighted-average grant date fair value of stock awards (in dollars per unit) | $ / shares		$ 15.18				$ 15.18		$ 15.76	$ 15.18
Number of stock awards vested (in units)		1,181,623				1,181,623		1,286,063	1,181,623
Number of stock awards granted (in shares)								733,096	670,254	565,921
Number of stock awards forfeited (in shares)								19,898	0	31,875
Granted (in dollars per share) | $ / shares								$ 16.06	$ 15.53	$ 16.01
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost | $								$ 9,000
Equity compensation expense | $								$ 3,000	$ 3,000	$ 3,000
Unvested outstanding stock awards (in units)		725,616				725,616		839,070	725,616
Weighted-average grant date fair value of stock awards (in dollars per unit) | $ / shares		$ 17.05		$ 13.24		$ 17.05	$ 13.24	$ 17.13	$ 17.05	$ 13.24
Number of stock awards granted (in shares)								307,938	258,078	273,054
Number of stock awards forfeited (in shares)								0	0	0
Share-based compensation, vesting period (in years)								3 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)								307,938	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%
Stock price valuation period		60 days
Grant date fair value (in dollars per share) | $ / shares		$ 17.23						$ 17.13
Grant date fair value assumptions, volatility rate		22.00%						15.00%
Grant date fair value assumptions, risk-free rate		2.78%						1.68%
Grant date fair value assumptions, dividend yield		0.00%						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]
TSR performance period (in years)											2 years
Grant date fair value assumptions, average closing stock price of common stock, measurement period (in days)											60 days
Number of stock awards vested (in shares)											222,769
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)						387,937	0
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, vesting period (in years)					4 years
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%
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%

Equity Compensation Plans - Unr

Equity Compensation Plans - Unrecognized Compensation Cost (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	$ 25,122
Equity grants	20,911
Equity grant forfeitures	(303)
Equity compensation expense	(13,402)
Unrecognized Compensation Cost at End of Period	32,328
Restricted Stock Awards
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized Compensation Cost at End of Period	2,000
Restricted Stock Units
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	18,000
Performance Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized Compensation Cost at End of Period	9,000
Incentive Plans | Restricted Stock Awards
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	3,498
Equity grants	0
Equity grant forfeitures	0
Equity compensation expense	(1,508)
Unrecognized Compensation Cost at End of Period	1,990
Incentive Plans | Restricted Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	74
Equity grants	4,233
Equity grant forfeitures	0
Equity compensation expense	(773)
Unrecognized Compensation Cost at End of Period	3,534
Incentive Plans | Deferred Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	14,489
Equity grants	11,230
Equity grant forfeitures	(303)
Equity compensation expense	(7,558)
Unrecognized Compensation Cost at End of Period	17,858
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	7,061
Equity grants	5,275
Equity grant forfeitures	0
Equity compensation expense	(3,390)
Unrecognized Compensation Cost at End of Period	8,946
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	173
Equity grant forfeitures	0
Equity compensation expense	(173)
Unrecognized Compensation Cost at End of Period	$ 0

Equity Compensation Plans - Res

Equity Compensation Plans - Restricted Stock Outstanding (Details) - Restricted Stock Awards - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Shares
Beginning of period (in shares)	334,606	257,507	204,515
Granted (in shares)	0	168,537	134,364
Vested (in shares)	(118,136)	(83,968)	(61,928)
Forfeited (in shares)	0	(7,470)	(19,444)
Balance at End of Period (in shares)	216,470	334,606	257,507
Weighted Average Grant Date Fair Market Value
Beginning of period (in dollars per share)	$ 14.92	$ 15.23	$ 14.27
Granted (in dollars per share)	0	14.71	16.52
Vested (in dollars per share)	15.05	15.46	14.97
Forfeited (in dollars per share)	0	15.05	14.78
Balance at End of Period (in dollars per share)	$ 14.85	$ 14.92	$ 15.23

Equity Compensation Plans - R_2

Equity Compensation Plans - Restricted Stock Units Activities (Details) - Restricted Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Shares
Beginning of period (in shares)	4,876	0	0
Granted (in shares)	270,297	4,876	0
Vested (in shares)	0	0	0
Forfeited (in shares)	0	0	0
Balance at End of Period (in shares)	275,173	4,876	0
Weighted Average Grant Date Fair Market Value
Beginning of period (in dollars per share)	$ 15.38	$ 0	$ 0
Granted (in dollars per share)	15.66	15.38	0
Vested (in dollars per share)	0	0	0
Forfeited (in dollars per share)	0	0	0
Balance at End of Period (in dollars per share)	$ 15.65	$ 15.38	$ 0

Equity Compensation Plans - Def

Equity Compensation Plans - Deferred Stock Units Activity (Details) - Deferred Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Units
Beginning of period (in shares)	2,336,720	1,878,491	1,848,862
Granted (in shares)	733,096	670,254	565,921
Distributions (in shares)	(419,113)	(212,025)	(504,417)
Forfeited (in shares)	(19,898)	0	(31,875)
Balance at End of Period (in shares)	2,630,805	2,336,720	1,878,491
Weighted Average Grant Date Fair Market Value
Beginning of period (in dollars per share)	$ 15.58	$ 15.92	$ 16.46
Granted (in dollars per share)	16.06	15.53	16.01
Distributions (in dollars per share)	15.96	18.37	18.09
Forfeited (in dollars per share)	15.96	0	14.80
Balance at End of Period (in dollars per share)	$ 15.66	$ 15.58	$ 15.92

Equity Compensation Plans - Sum

Equity Compensation Plans - Summary of Activity Related to ESPP (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Employee Stock Purchase Plan (ESPP) Activity [Roll Forward]
Balance at beginning of period	$ 6	$ 4	$ 3
Employee purchases	524	375	305
Cost of common stock issued	(526)	(373)	(304)
Balance at End of Period	$ 4	$ 6	$ 4

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, 2019	Dec. 31, 2018	Dec. 31, 2017
Deferred Compensation Cash-based Arrangements, Liability, Current and Noncurrent [Roll Forward]
Balance at beginning of period	$ 2,484	$ 2,171	$ 2,088
New deferrals	789	759	750
Accrued interest	68	82	58
Withdrawals	(887)	(528)	(725)
Balance at End of Period	$ 2,454	$ 2,484	$ 2,171

Mortgage Banking Activities (De

Mortgage Banking Activities (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income		$ 19,257	$ 13,070	$ 12,436
Mortgage Banking Activities, Net		87,266	59,566	53,908
Residential Mortgage Banking Activities, Net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income		1,735	2,567	2,064
Mortgage Banking Activities, Net		47,743	59,623	53,908
Residential Mortgage Banking Activities, Net | Residential 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		63,527	21,808	69,373
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		(17,519)	35,248	(17,529)
Business Purpose Mortgage Banking
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income		16,205	0	0
Mortgage Banking Activities, Net		39,523	(57)	0
Business Purpose Mortgage Banking | Single-family rental loans, held-for-sale
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets		17,004	453	0
Business Purpose Mortgage Banking | 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		1,796	(510)	0
Business Purpose Mortgage Banking | Residential bridge loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	$ 5,000	$ 4,518	$ 0	$ 0

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, 2019	Dec. 31, 2018	Dec. 31, 2017
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	$ 35,500	$ (25,689)	$ 10,374
Residential loans held-for-investment, at Redwood
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	58,891	(29,573)	(5,765)
Single-family rental loans held-for-investment
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	272	0	0
Residential bridge loans held-for-investment
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(2,139)	(29)	0
Trading securities
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	56,046	(8,055)	39,526
Servicer advance investments
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	3,001	(701)	0
Excess MSRs
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(3,260)	1,823	0
Shared home appreciation options
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	842	0	0
REO
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(1,045)	0	0
Net investments in Legacy Sequoia entities
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(1,545)	(1,016)	(8,027)
Net investments in Sequoia Choice entities
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	6,947	443	(323)
Freddie Mac SLST
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	27,206	1,271	0
Freddie Mac K-Series
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	21,430	931	0
CAFL
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(3,636)	0	0
Risk-sharing and other investments
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(341)	(434)	(1,484)
Risk management derivatives, net
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	(127,169)	9,740	(12,842)
Valuation adjustments on commercial loans held-for-sale
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	0	0	300
Impairments on AFS securities
Investment Holdings [Line Items]
Investment Fair Value Changes, Net	$ 0	$ (89)	$ (1,011)

Other Income (Details)

Other Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other Income and Expenses [Abstract]
MSR income, net	$ 3,521	$ 7,076	$ 7,860
Risk share income	3,522	3,613	3,194
FHLBC capital stock dividend	2,169	1,763	1,382
Equity investment income	1,405	618	0
5 Arches loan administration fee income	4,400	0
Gain on re-measurement of investment in 5 Arches	2,441	0
Other	1,799	0	0
Other Income	$ 19,257	$ 13,070	$ 12,436

General and Administrative Ex_3

General and Administrative Expenses and Other Expenses - Components of Operating Expenses (Details) - USD ($) $ in Thousands	Oct. 15, 2019	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill [Line Items]
Fixed compensation expense										$ 39,747	$ 24,445	$ 22,111
Variable compensation expense										25,069	14,589	20,574
Equity compensation expense										13,402	12,388	10,141
Acquisition-related equity compensation expense										1,010	0	0
Systems and consulting										10,746	7,451	7,073
Loan acquisition costs										7,031	7,697	5,022
Office costs										6,310	4,705	4,248
Accounting and legal										5,450	5,529	2,842
Corporate costs										2,351	1,955	1,856
Other										7,556	4,023	3,289
Total General and Administrative Expenses										118,672	82,782	77,156
Amortization of purchase-related intangible assets										8,699	177	0
Contingent consideration expense										3,217	0	0
Other										1,106	19	0
Total Other Expenses										13,022	196	0
Total General and Administrative Expenses and Other Expenses		$ 49,444	$ 29,346	$ 28,707	$ 24,197	$ 19,378	$ 21,561	$ 19,009	$ 23,030	$ 131,694	$ 82,978	77,156
Upfront costs associated with hiring new executive officer												$ 2,000
CoreVest LLC
Goodwill [Line Items]
Acquisition-related equity compensation expense	$ 10,000
Restricted stock awards (in shares)	588,260
Restricted stock awards	$ 10,000
Contingent consideration performance term	2 years

Taxes - Components of Net Defer

Taxes - Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred Tax Assets
Net operating loss carryforward – state	$ 98,554	$ 103,858
Net operating loss carryforward – federal	82	0
Real estate assets	676	2,400
Interest rate agreements	0	2,320
Allowances and accruals	1,930	1,830
Goodwill and intangible assets	2,739	0
Other	1,749	1,586
Total Deferred Tax Assets	105,730	111,994
Deferred Tax Liabilities
Mortgage Servicing Rights	(13,783)	(20,068)
Interest rate agreements	(42)	0
Total Deferred Tax Liabilities	(13,825)	(20,068)
Valuation allowance	(97,057)	(100,948)
Total Deferred Tax Asset (Liability), net of Valuation Allowance	$ (5,152)	$ (9,022)

Taxes - Additional Information

Taxes - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)
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	$ 28
NOL carry forwards	0.4
State and Local Jurisdiction
Income Taxes [Line Items]
NOL carry forwards	$ 1,150

Taxes - Provision for (Benefit

Taxes - Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current Provision for Income Taxes
Federal	$ 12,036	$ 11,387	$ 512
State	897	820	361
Total Current Provision for Income Taxes	12,933	12,207	873
Deferred (Benefit) Provision for Income Taxes
Federal	(3,976)	(1,419)	10,991
State	(1,517)	300	(112)
Total Deferred (Benefit) Provision for Income Taxes	(5,493)	(1,119)	10,879
Total Provision for Income Taxes	$ 7,440	$ 11,088	$ 11,752

Taxes - Reconciliation of Statu

Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	21.00%	34.00%
State statutory rate, net of Federal tax effect	8.60%	8.60%	7.20%
Differences in taxable (loss) income from GAAP income	(2.10%)	(1.70%)	(3.90%)
Change in valuation allowance	(2.20%)	1.90%	(1.00%)
Dividends paid deduction	(21.10%)	(21.30%)	(23.40%)
Federal statutory rate change	0	0	(0.052)
Effective Tax Rate	4.20%	8.50%	7.70%

Segment Information - Additiona

Segment Information - Additional Information (Details)	12 Months Ended
	Dec. 31, 2019segment
Segment Reporting [Abstract]
Number of operating segments	4

Segment Information - Financial

Segment Information - Financial Information by Segment (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Interest income	$ 192,581	$ 150,117	$ 148,542	$ 131,041	$ 119,725	$ 99,397	$ 82,976	$ 76,619	$ 622,281	$ 378,717	$ 248,057
Interest expense	(147,708)	(116,604)	(116,220)	(99,276)	(84,961)	(64,351)	(48,213)	(41,514)	(479,808)	(239,039)	(108,816)
Net Interest Income	44,873	33,513	32,322	31,765	34,764	35,046	34,763	35,105	142,473	139,678	139,241
Non-interest income
Mortgage banking activities, net									87,266	59,566	53,908
Investment fair value changes, net									35,500	(25,689)	10,374
Other income									19,257	13,070	12,436
Realized gains, net									23,821	27,041	13,355
Total non-interest income, net	58,052	30,029	29,984	47,779	(17,538)	32,327	19,527	39,672	165,844	73,988	90,073
General and administrative expenses									(118,672)	(82,782)	(77,156)
Other expenses									(13,022)	(196)	0
Provision for income taxes									(7,440)	(11,088)	(11,752)
Net Income	$ 49,143	$ 34,310	$ 31,266	$ 54,464	$ (913)	$ 40,921	$ 32,747	$ 46,845	169,183	119,600	140,406
Non-cash amortization income (expense), net									(3,361)	12,379	17,462
Operating Segments | Residential Lending
Segment Reporting Information [Line Items]
Interest income									268,559	245,124	158,819
Interest expense									(192,359)	(158,498)	(66,364)
Net Interest Income									76,200	86,626	92,455
Non-interest income
Mortgage banking activities, net									47,743	59,623	53,908
Investment fair value changes, net									(27,920)	(21,686)	(25,466)
Other income									9,210	12,452	12,436
Realized gains, net									8,292	7,709	3,907
Total non-interest income, net									37,325	58,098	44,785
General and administrative expenses									(30,671)	(32,139)	(28,622)
Other expenses									0	0
Provision for income taxes									(4,074)	(8,033)	(6,641)
Net Income									78,780	104,552	101,977
Non-cash amortization income (expense), net									3,669	4,486	4,946
Operating Segments | Business Purpose Lending
Segment Reporting Information [Line Items]
Interest income									54,372	4,588	0
Interest expense									(35,663)	(2,252)	0
Net Interest Income									18,709	2,336	0
Non-interest income
Mortgage banking activities, net									39,523	(57)	0
Investment fair value changes, net									(6,722)	(29)	0
Other income									5,852	0	0
Realized gains, net									0	0	0
Total non-interest income, net									38,653	(86)	0
General and administrative expenses									(30,655)	(2,597)	0
Other expenses									(8,521)	0
Provision for income taxes									(947)	0	0
Net Income									17,239	(347)	0
Non-cash amortization income (expense), net									(9,173)	(290)	0
Operating Segments | Multifamily Investments
Segment Reporting Information [Line Items]
Interest income									161,692	40,050	9,170
Interest expense									(151,980)	(34,324)	(6,107)
Net Interest Income									9,712	5,726	3,063
Non-interest income
Mortgage banking activities, net									0	0	0
Investment fair value changes, net									27,097	3,979	16,196
Other income									1,484	0	0
Realized gains, net									134	0	0
Total non-interest income, net									28,715	3,979	16,196
General and administrative expenses									(1,498)	(869)	(425)
Other expenses									0	0
Provision for income taxes									(11)	(16)	(238)
Net Income									36,918	8,820	18,596
Non-cash amortization income (expense), net									(1)	(1)	(1)
Operating Segments | Third-Party Residential Investments
Segment Reporting Information [Line Items]
Interest income									120,009	68,919	60,661
Interest expense									(85,388)	(27,446)	(21,512)
Net Interest Income									34,621	41,473	39,149
Non-interest income
Mortgage banking activities, net									0	0	0
Investment fair value changes, net									44,662	(6,957)	27,684
Other income									0	0	0
Realized gains, net									15,395	19,332	10,200
Total non-interest income, net									60,057	12,375	37,884
General and administrative expenses									(2,843)	(2,855)	(2,028)
Other expenses									(1,106)	(18)
Provision for income taxes									(2,408)	(3,039)	(4,873)
Net Income									88,321	47,936	70,132
Non-cash amortization income (expense), net									6,957	12,295	15,927
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income									17,649	20,036	19,407
Interest expense									(14,418)	(16,519)	(14,833)
Net Interest Income									3,231	3,517	4,574
Non-interest income
Mortgage banking activities, net									0	0	0
Investment fair value changes, net									(1,617)	(996)	(8,040)
Other income									2,711	618	0
Realized gains, net									0	0	(752)
Total non-interest income, net									1,094	(378)	(8,792)
General and administrative expenses									(53,005)	(44,322)	(46,081)
Other expenses									(3,395)	(178)	0
Provision for income taxes									0	0	0
Net Income									(52,075)	(41,361)	(50,299)
Non-cash amortization income (expense), net									$ (4,813)	$ (4,111)	$ (3,410)

Segment Information - Component

Segment Information - Components of Corporate/Other (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Interest income	$ 192,581	$ 150,117	$ 148,542	$ 131,041	$ 119,725	$ 99,397	$ 82,976	$ 76,619	$ 622,281	$ 378,717	$ 248,057
Interest expense	(147,708)	(116,604)	(116,220)	(99,276)	(84,961)	(64,351)	(48,213)	(41,514)	(479,808)	(239,039)	(108,816)
Net Interest Income	44,873	33,513	32,322	31,765	34,764	35,046	34,763	35,105	142,473	139,678	139,241
Investment fair value changes, net									35,500	(25,689)	10,374
Other income									1,799	0	0
Realized gains, net									23,821	27,041	13,355
Total non-interest income, net	58,052	30,029	29,984	47,779	(17,538)	32,327	19,527	39,672	165,844	73,988	90,073
General and administrative expenses									(118,672)	(82,782)	(77,156)
Other expenses									(13,022)	(196)	0
Net Income	$ 49,143	$ 34,310	$ 31,266	$ 54,464	$ (913)	$ 40,921	$ 32,747	$ 46,845	169,183	119,600	140,406
Legacy Consolidated VIEs
Segment Reporting Information [Line Items]
Other expenses									0	0	0
Other
Segment Reporting Information [Line Items]
Other expenses									(3,395)	(178)	0
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income									17,649	20,036	19,407
Interest expense									(14,418)	(16,519)	(14,833)
Net Interest Income									3,231	3,517	4,574
Investment fair value changes, net									(1,617)	(996)	(8,040)
Other income									2,711	618	0
Realized gains, net									0	0	(752)
Total non-interest income, net									1,094	(378)	(8,792)
General and administrative expenses									(53,005)	(44,322)	(46,081)
Other expenses									(3,395)	(178)	0
Net Income									(52,075)	(41,361)	(50,299)
Corporate/ Other | Legacy Consolidated VIEs
Segment Reporting Information [Line Items]
Interest income									17,649	20,036	19,407
Interest expense									(14,418)	(16,519)	(14,789)
Net Interest Income									3,231	3,517	4,618
Investment fair value changes, net									(1,545)	(1,016)	(8,027)
Other income									0	0	0
Realized gains, net									0	0	0
Total non-interest income, net									(1,545)	(1,016)	(8,027)
General and administrative expenses									0	0	0
Net Income									1,686	2,501	(3,409)
Corporate/ Other | Other
Segment Reporting Information [Line Items]
Interest income									0	0	0
Interest expense									0	0	(44)
Net Interest Income									0	0	(44)
Investment fair value changes, net									(72)	20	(13)
Other income									2,711	618	0
Realized gains, net									0	0	(752)
Total non-interest income, net									2,639	638	(765)
General and administrative expenses									(53,005)	(44,322)	(46,081)
Net Income									$ (53,761)	$ (43,862)	$ (46,890)

Segment Information - Supplemen

Segment Information - Supplemental Information by Segment (Details) - USD ($) $ in Thousands		Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Real estate securities	[1]	$ 1,099,874	$ 1,452,494
Other investments	[1]	358,130	438,518
Goodwill		161,464
Total Assets	[1]	17,995,440	11,937,406
Residential loans
Segment Reporting Information [Line Items]
Loans, at fair value		7,714,850	7,254,742
Business purpose residential loans
Segment Reporting Information [Line Items]
Loans, at fair value		3,506,743	141,258
Multifamily loans
Segment Reporting Information [Line Items]
Loans, at fair value		4,408,524	2,144,598
Operating Segments | Residential Lending
Segment Reporting Information [Line Items]
Real estate securities		229,074	364,308
Other investments		42,224	99,984
Goodwill		0
Total Assets		5,410,540	6,186,889
Operating Segments | Residential Lending | Residential loans
Segment Reporting Information [Line Items]
Loans, at fair value		4,939,745	5,512,116
Operating Segments | Residential Lending | Business purpose residential loans
Segment Reporting Information [Line Items]
Loans, at fair value		0	0
Operating Segments | Residential Lending | Multifamily loans
Segment Reporting Information [Line Items]
Loans, at fair value		0	0
Operating Segments | Business Purpose Lending
Segment Reporting Information [Line Items]
Real estate securities		0	0
Other investments		21,002	10,754
Goodwill		161,464
Total Assets		3,786,641	160,950
Operating Segments | Business Purpose Lending | Residential loans
Segment Reporting Information [Line Items]
Loans, at fair value		0	0
Operating Segments | Business Purpose Lending | Business purpose residential loans
Segment Reporting Information [Line Items]
Loans, at fair value		3,506,743	141,258
Operating Segments | Business Purpose Lending | Multifamily loans
Segment Reporting Information [Line Items]
Loans, at fair value		0	0
Operating Segments | Multifamily Investments
Segment Reporting Information [Line Items]
Real estate securities		404,128	429,079
Other investments		61,018	15,092
Goodwill		0
Total Assets		4,889,330	2,600,150
Operating Segments | Multifamily Investments | Residential loans
Segment Reporting Information [Line Items]
Loans, at fair value		0	0
Operating Segments | Multifamily Investments | Business purpose residential loans
Segment Reporting Information [Line Items]
Loans, at fair value		0	0
Operating Segments | Multifamily Investments | Multifamily loans
Segment Reporting Information [Line Items]
Loans, at fair value		4,408,524	2,144,598
Operating Segments | Third-Party Residential Investments
Segment Reporting Information [Line Items]
Real estate securities		466,672	659,107
Other investments		233,886	312,688
Goodwill		0
Total Assets		3,139,616	2,232,276
Operating Segments | Third-Party Residential Investments | Residential loans
Segment Reporting Information [Line Items]
Loans, at fair value		2,367,215	1,222,668
Operating Segments | Third-Party Residential Investments | Business purpose residential loans
Segment Reporting Information [Line Items]
Loans, at fair value		0	0
Operating Segments | Third-Party Residential Investments | Multifamily loans
Segment Reporting Information [Line Items]
Loans, at fair value		0	0
Corporate/ Other
Segment Reporting Information [Line Items]
Real estate securities		0	0
Other investments		0	0
Goodwill		0
Total Assets		769,313	757,141
Corporate/ Other | Residential loans
Segment Reporting Information [Line Items]
Loans, at fair value		407,890	519,958
Corporate/ Other | Business purpose residential loans
Segment Reporting Information [Line Items]
Loans, at fair value		0	0
Corporate/ Other | Multifamily loans
Segment Reporting Information [Line Items]
Loans, at fair value		$ 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, 2019 and December 31, 2018 , assets of consolidated VIEs totaled $11,931,869 and $6,331,191 , respectively. At December 31, 2019 and December 31, 2018 , liabilities of consolidated VIEs totaled $10,717,072 and $5,709,807 , 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, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating results:
Interest income	$ 192,581	$ 150,117	$ 148,542	$ 131,041	$ 119,725	$ 99,397	$ 82,976	$ 76,619	$ 622,281	$ 378,717	$ 248,057
Interest expense	(147,708)	(116,604)	(116,220)	(99,276)	(84,961)	(64,351)	(48,213)	(41,514)	(479,808)	(239,039)	(108,816)
Net Interest Income	44,873	33,513	32,322	31,765	34,764	35,046	34,763	35,105	142,473	139,678	139,241
Non-interest income	58,052	30,029	29,984	47,779	(17,538)	32,327	19,527	39,672	165,844	73,988	90,073
General and administrative expenses	(49,444)	(29,346)	(28,707)	(24,197)	(19,378)	(21,561)	(19,009)	(23,030)	(131,694)	(82,978)	(77,156)
Net Income	$ 49,143	$ 34,310	$ 31,266	$ 54,464	$ (913)	$ 40,921	$ 32,747	$ 46,845	$ 169,183	$ 119,600	$ 140,406
Per share data:
Net income - basic (in dollars per share)	$ 0.42	$ 0.33	$ 0.31	$ 0.57	$ (0.02)	$ 0.49	$ 0.42	$ 0.60	$ 1.63	$ 1.47	$ 1.78
Net Income - diluted (in dollars per share)	0.38	0.31	0.30	0.49	(0.02)	0.42	0.38	0.50	1.46	1.34	1.60
Regular dividends declared per common share (in dollars per share)	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.28	$ 1.20	$ 1.18	$ 1.12

Schedule IV - Mortgage Loans _2

Schedule IV - Mortgage Loans On Real Estate (Details)	12 Months Ended
	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	669	1,484
Carrying Amount	$ 15,630,117,000	$ 9,540,598,000	$ 5,115,210,000	$ 3,890,751,000
Principal Amount Subject to Delinquent Principal or Interest	747,000	$ 747,000
Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	7,178,465,000
Principal Amount Subject to Delinquent Principal or Interest	153,319,000
Real estate loans, federal income tax basis	2,070,000,000
Residential 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	536,385,000
Principal Amount Subject to Delinquent Principal or Interest	$ 747,000
Residential loans, held-for-sale, at fair value | ARM loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2
Carrying Amount	$ 105,000
Principal Amount Subject to Delinquent Principal or Interest	$ 0
Residential loans, held-for-sale, at fair value | ARM loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.38%
Residential loans, held-for-sale, at fair value | ARM loans | Maximum
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, at fair value | Hybrid ARM loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	115	108
Carrying Amount	$ 93,755,000
Principal Amount Subject to Delinquent Principal or Interest	$ 0	$ 0
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.00%
Residential loans, held-for-sale, at fair value | Hybrid ARM 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, 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	554	1,376
Carrying Amount	$ 442,525,000
Principal Amount Subject to Delinquent Principal or Interest	$ 747,000	$ 747,000
Residential 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	3.20%
Residential 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	7.13%
Single-family rental loans, held-for-sale
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	$ 331,565,000
Principal Amount Subject to Delinquent Principal or Interest	$ 1,818,000
Single-family rental 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	201
Carrying Amount	$ 331,565,000
Principal Amount Subject to Delinquent Principal or Interest	$ 1,818,000
Single-family rental 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	4.35%
Single-family rental 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	7.63%
Single-family rental loans held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	$ 2,430,172,000
Principal Amount Subject to Delinquent Principal or Interest	29,039,000
Real estate loans, federal income tax basis	238,000,000
Residential bridge loans held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	745,006,000
Principal Amount Subject to Delinquent Principal or Interest	8,989,000
Real estate loans, federal income tax basis	$ 746,000,000
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	2,653
Carrying Amount	$ 745,006,000
Principal Amount Subject to Delinquent Principal or Interest	$ 8,989,000
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	5.79%
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	13.00%
Multifamily loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	$ 4,408,524,000
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	279
Carrying Amount	$ 4,408,524,000
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	4.94%
Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Real estate loans, federal income tax basis	$ 0
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	2,198	2,641
Principal Amount Subject to Delinquent Principal or Interest	$ 9,803,000	$ 13,955,000
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	2,186	2,620
Carrying Amount	$ 402,837,000
Principal Amount Subject to Delinquent Principal or Interest	$ 9,803,000	$ 13,955,000
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	6.00%
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	12	21
Carrying Amount	$ 5,053,000
Principal Amount Subject to Delinquent Principal or Interest	$ 0	$ 0
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	3.63%
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	5.13%
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	3,156	2,800
Carrying Amount	$ 2,291,463,000
Principal Amount Subject to Delinquent Principal or Interest	$ 6,756,000	$ 1,905,000
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	6.75%
Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Real estate loans, federal income tax basis	$ 0
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	14,502	7,900
Carrying Amount	$ 2,367,215,000
Principal Amount Subject to Delinquent Principal or Interest	$ 135,175,000	$ 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	11.00%
CAFL | Single-family rental 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	783
Carrying Amount	$ 2,192,552,000
Principal Amount Subject to Delinquent Principal or Interest	$ 29,039,000
CAFL | Single-family rental 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	4.31%
CAFL | Single-family rental 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	7.57%
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	2,940	3,296
Principal Amount Subject to Delinquent Principal or Interest	$ 1,585,000	$ 1,224,000
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	299	385
Carrying Amount	$ 232,581,000
Principal Amount Subject to Delinquent Principal or Interest	$ 971,000	$ 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	2.875%
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	6.00%
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	2,641	2,911
Carrying Amount	$ 1,879,316,000
Principal Amount Subject to Delinquent Principal or Interest	$ 614,000	$ 1,224,000
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 | Single-family rental 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	107
Carrying Amount	$ 237,620,000
Principal Amount Subject to Delinquent Principal or Interest	$ 0
Redwood | Single-family rental 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	3.93%
Redwood | Single-family rental 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	7.47%

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, 2019	Dec. 31, 2018	Dec. 31, 2017
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Balance at beginning of period	$ 9,540,598	$ 5,115,210	$ 3,890,751
Additions during period:
Originations/acquisitions	12,911,261	10,607,896	5,741,427
Deductions during period:
Sales	(5,218,797)	(5,426,304)	(3,982,683)
Principal repayments	(1,851,278)	(843,984)	(576,620)
Transfers to REO	(7,552)	(4,104)	(4,219)
Changes in fair value, net	255,885	91,884	46,554
Balance at end of period	$ 15,630,117	$ 9,540,598	$ 5,115,210