Redwood Trust (RWT) 10-Q 4 Aug 21 2021 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Aug. 02, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
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 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
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity small business	false
Emerging growth company	false
Entity Shell Company	false
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	RWT
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		113,055,422
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000930236
Current Fiscal Year End Date	--12-31

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Jun. 30, 2021	Dec. 31, 2020
ASSETS
Real estate securities, at fair value	[1]	$ 354,886	$ 344,125
Other investments	[1]	308,732	348,175
Cash and cash equivalents	[1]	421,223	461,260
Restricted cash	[1]	55,048	83,190
Intangible assets	[1]	49,119	56,865
Derivative assets	[1]	34,305	53,238
Other assets	[1]	136,432	130,588
Total Assets	[1]	11,996,391	10,355,066
Liabilities
Short-term debt, net	[1]	1,484,999	522,609
Derivative liabilities	[1]	3,240	16,072
Accrued expenses and other liabilities	[1]	191,705	179,340
Asset-backed securities issued (includes $7,360,766 and $6,900,362 at fair value), net	[1]	7,536,997	7,100,661
Long-term debt, net	[1]	1,484,308	1,425,485
Total liabilities	[1]	10,701,249	9,244,167
Commitments and Contingencies	[1]
Equity
Common stock, par value $0.01 per share, 395,000,000 shares authorized; 113,052,780 and 112,090,006 issued and outstanding	[1]	1,131	1,121
Additional paid-in capital	[1]	2,287,412	2,264,874
Accumulated other comprehensive income (loss)	[1]	9,740	(4,221)
Cumulative earnings	[1]	1,184,559	997,277
Cumulative distributions to stockholders	[1]	(2,187,700)	(2,148,152)
Total equity	[1]	1,295,142	1,110,899
Total Liabilities and Equity	[1]	11,996,391	10,355,066
Residential loans, held-for-sale, at fair value
ASSETS
Fair value of loans	[1]	1,160,548	176,641
Residential loans, held-for-investment, at fair value
ASSETS
Fair value of loans	[1]	4,582,052	4,072,410
Business purpose loans, held-for-sale, at fair value
ASSETS
Fair value of loans	[1]	418,442	245,394
Business purpose loans, held-for-investment, at fair value
ASSETS
Fair value of loans	[1]	3,990,447	3,890,959
Multifamily loans
ASSETS
Fair value of loans	[1]	$ 485,157	$ 492,221
[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 June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, respectively. See Note 4 for further discussion.

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands		Jun. 30, 2021	Dec. 31, 2020
ABS issued, net, Fair value		$ 7,360,766	$ 6,900,362
Common stock, par value (usd per share)		$ 0.01	$ 0.01
Common stock, shares authorized (shares)		395,000,000	395,000,000
Common stock, issued (shares)		113,052,780	112,090,006
Common stock, outstanding (shares)		113,052,780	112,090,006
Assets	[1]	$ 11,996,391	$ 10,355,066
Liabilities	[1]	10,701,249	9,244,167
Variable Interest Entity, Primary Beneficiary
Assets		8,616,435	8,141,069
Liabilities		$ 7,562,367	$ 7,148,414
[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 June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, respectively. See Note 4 for further discussion.

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Interest Income
Residential loans	$ 48,433	$ 54,974	$ 92,088	$ 134,410
Business purpose loans	70,323	53,419	134,511	106,073
Multifamily loans	4,860	4,870	9,646	45,042
Real estate securities	9,279	10,027	18,942	28,336
Other interest income	5,800	6,656	11,813	14,166
Total interest income	138,695	129,946	267,000	328,027
Interest Expense
Short-term debt	(11,195)	(16,907)	(18,968)	(39,974)
Asset-backed securities issued	(76,419)	(65,304)	(148,980)	(165,802)
Long-term debt	(20,451)	(20,455)	(42,669)	(43,561)
Total interest expense	(108,065)	(102,666)	(210,617)	(249,337)
Net Interest Income	30,630	27,280	56,383	78,690
Non-interest Income (Loss)
Mortgage banking activities, net	54,419	(5,982)	137,026	(34,884)
Investment fair value changes, net	49,480	152,228	94,567	(718,604)
Other income, net	2,126	1,165	5,969	4,093
Realized gains, net	8,384	25,965	11,100	29,817
Total non-interest income (loss), net	114,409	173,376	248,662	(719,578)
General and administrative expenses	(40,594)	(28,520)	(84,145)	(57,202)
Loan acquisition costs	(3,748)	(1,572)	(7,307)	(5,558)
Other expenses	(3,985)	(5,083)	(8,081)	(96,498)
Net Income (Loss) before (Provision for) Benefit from Income Taxes	96,712	165,481	205,512	(800,146)
(Provision for) benefit from income taxes	(6,687)	(37)	(18,230)	22,192
Net Income (Loss)	$ 90,025	$ 165,444	$ 187,282	$ (777,954)
Basic earnings (loss) per common share (in dollars per share)	$ 0.77	$ 1.41	$ 1.61	$ (6.82)
Diluted earnings (loss) per common share (in dollars per share)	$ 0.66	$ 1	$ 1.38	$ (6.82)
Basic weighted average shares outstanding (in shares)	112,921,070	114,383,289	112,337,984	114,229,928
Diluted weighted average shares outstanding (in shares)	141,761,084	147,099,079	141,139,212	114,229,928

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ 90,025	$ 165,444	$ 187,282	$ (777,954)
Other comprehensive income (loss):
Net unrealized gain (loss) on available-for-sale securities	11,224	52,393	22,210	(28,126)
Reclassification of unrealized (gain) loss on available-for-sale securities to net income	(7,500)	2,718	(10,295)	(11,080)
Net unrealized loss on interest rate agreements	0	0	0	(32,806)
Reclassification of unrealized loss on interest rate agreements to net income	1,028	1,029	2,046	1,108
Total other comprehensive income (loss)	4,752	56,140	13,961	(70,904)
Total Comprehensive Income (Loss)	$ 94,777	$ 221,584	$ 201,243	$ (848,858)

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 (Loss)	Cumulative Earnings	Cumulative Distributions to Stockholders
Beginning balance (in shares) at Dec. 31, 2019		114,353,036
Balance at beginning of period at Dec. 31, 2019	$ 1,827,231	$ 1,144	$ 2,269,617	$ 41,513	$ 1,579,124	$ (2,064,167)
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)	(777,954)				(777,954)
Other comprehensive income (loss)	(70,904)			(70,904)
Issuance of common stock (in shares)		350,088
Issuance of common stock	5,547	$ 3	5,544
Employee stock purchase and incentive plans (in shares)		237,073
Employee stock purchase and incentive plans	(2,774)	$ 2	(2,776)
Non-cash equity award compensation	7,240		7,240
Common dividends declared	(51,810)					(51,810)
Ending balance (in shares) at Jun. 30, 2020		114,940,197
Balance at End of Period at Jun. 30, 2020	936,576	$ 1,149	2,279,625	(29,391)	801,170	(2,115,977)
Beginning balance (in shares) at Mar. 31, 2020		114,837,533
Balance at beginning of period at Mar. 31, 2020	725,202	$ 1,148	2,275,808	(85,531)	635,726	(2,101,949)
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)	165,444				165,444
Other comprehensive income (loss)	56,140			56,140
Employee stock purchase and incentive plans (in shares)		102,664
Employee stock purchase and incentive plans	(234)	$ 1	(235)
Non-cash equity award compensation	4,052		4,052
Common dividends declared	(14,028)					(14,028)
Ending balance (in shares) at Jun. 30, 2020		114,940,197
Balance at End of Period at Jun. 30, 2020	936,576	$ 1,149	2,279,625	(29,391)	801,170	(2,115,977)
Beginning balance (in shares) at Dec. 31, 2020		112,090,006
Balance at beginning of period at Dec. 31, 2020	1,110,899	$ 1,121	2,264,874	(4,221)	997,277	(2,148,152)
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)	187,282				187,282
Other comprehensive income (loss)	13,961			13,961
Issuance of common stock (in shares)		806,068
Issuance of common stock	13,374	$ 8	13,366
Employee stock purchase and incentive plans (in shares)		156,706
Employee stock purchase and incentive plans	(687)	$ 2	(689)
Non-cash equity award compensation	9,861		9,861
Common dividends declared	(39,548)					(39,548)
Ending balance (in shares) at Jun. 30, 2021		113,052,780
Balance at End of Period at Jun. 30, 2021	1,295,142	$ 1,131	2,287,412	9,740	1,184,559	(2,187,700)
Beginning balance (in shares) at Mar. 31, 2021		112,998,732
Balance at beginning of period at Mar. 31, 2021	1,215,575	$ 1,130	2,281,647	4,988	1,094,534	(2,166,724)
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)	90,025				90,025
Other comprehensive income (loss)	4,752			4,752
Employee stock purchase and incentive plans (in shares)		54,048
Employee stock purchase and incentive plans	123	$ 1	122
Non-cash equity award compensation	5,643		5,643
Common dividends declared	(20,976)					(20,976)
Ending balance (in shares) at Jun. 30, 2021		113,052,780
Balance at End of Period at Jun. 30, 2021	$ 1,295,142	$ 1,131	$ 2,287,412	$ 9,740	$ 1,184,559	$ (2,187,700)

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Stockholders' Equity [Abstract]
Common dividends declared (in dollars per share)	$ 0.18	$ 0.125	$ 0.34	$ 0.445

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2021	Jun. 30, 2020
Cash Flows From Operating Activities:
Net Income (Loss)		$ 187,282	$ (777,954)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Amortization of premiums, discounts, and securities issuance costs, net		3,998	4,083
Depreciation and amortization of non-financial assets		8,405	8,962
Originations of held-for-sale loans		(567,546)	(457,510)
Purchases of held-for-sale loans		(6,682,864)	(2,720,245)
Proceeds from sales of held-for-sale loans		4,526,370	3,126,860
Principal payments on held-for-sale loans		19,856	48,901
Net settlements of derivatives		39,697	(183,373)
Non-cash equity award compensation expense		9,861	7,240
Goodwill impairment expense		0	88,675
Market valuation adjustments		(213,641)	765,647
Realized gains, net		(11,100)	(29,817)
Net change in:
Accrued interest receivable and other assets		10,260	254,368
Accrued interest payable and accrued expenses and other liabilities		17,327	(80,219)
Net cash (used in) provided by operating activities		(2,652,095)	55,618
Cash Flows From Investing Activities:
Originations of loan investments		(348,389)	(263,544)
Proceeds from sales of loan investments		9,231	1,574,160
Principal payments on loan investments		1,312,064	1,136,000
Purchases of real estate securities		(18,593)	(52,260)
Sales of securities held in consolidated securitization trusts		8,197	142,990
Proceeds from sales of real estate securities		36,735	621,730
Principal payments on real estate securities		29,786	16,405
Purchases of servicer advance investments		0	(179,419)
Principal repayments from servicer advance investments		45,838	75,478
Other investing activities, net		(5,025)	(11,139)
Net cash provided by investing activities		1,069,844	3,060,401
Cash Flows From Financing Activities:
Proceeds from borrowings on short-term debt		6,604,603	3,655,530
Repayments on short-term debt		(5,421,494)	(5,322,519)
Proceeds from issuance of asset-backed securities		1,629,218	827,644
Repayments on asset-backed securities issued		(1,088,809)	(673,323)
Proceeds from borrowings on long-term debt		487,975	944,282
Repayments on long-term debt		(654,893)	(2,128,805)
Net settlements of derivatives		0	(84,336)
Net proceeds from issuance of common stock		255	5,707
Taxes paid on equity award distributions		(943)	(2,934)
Dividends paid		(39,548)	(51,810)
Other financing activities, net		(2,292)	(3,180)
Net cash provided by (used in) financing activities		1,514,072	(2,833,744)
Net (decrease) increase in cash, cash equivalents and restricted cash		(68,179)	282,275
Cash, cash equivalents and restricted cash at beginning of period	[1]	544,450	290,833
Cash, cash equivalents, and restricted cash at end of period	[1]	476,271	573,108
Cash paid during the period for:
Interest		198,364	267,787
Taxes		19,183	209
Supplemental Noncash Information:
Real estate securities retained from loan securitizations		9,374	46,560
Consolidation of multifamily loans held in securitization trusts		0	(3,849,779)
Consolidation of multifamily ABS		0	(3,706,789)
Transfers from loans held-for-sale to loans held-for-investment		1,998,535	706,775
Transfers from loans held-for-investment to loans held-for-sale		44,922	0
Transfers from residential loans to real estate owned		15,827	9,645
Transfers from long-term debt to short-term debt		47,994	0
Right-of-use asset obtained in exchange for operating lease liability		1,135	5,362
Issuance of common stock for 5 Arches acquisition		$ 13,375	$ 3,375
[1]	Cash, cash equivalents, and restricted cash at June 30, 2021 includes cash and cash equivalents of $421 million and restricted cash of $55 million, and at December 31, 2020 includes cash and cash equivalents of $461 million and restricted cash of $83 million.

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS (PARENTHETICAL) - USD ($) $ in Thousands		Jun. 30, 2021	Dec. 31, 2020
Statement of Cash Flows [Abstract]
Cash and cash equivalents	[1]	$ 421,223	$ 461,260
Restricted cash	[1]	$ 55,048	$ 83,190
[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 June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, respectively. See Note 4 for further discussion.

Organization

Organization	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Redwood Trust, Inc., together with its subsidiaries, is a specialty finance company focused on several distinct areas of housing credit. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the U.S. housing market not served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms; whole-loan distribution activities; and our publicly-traded shares. Our consolidated investment portfolio has evolved to incorporate a diverse mix of residential, business purpose and multifamily investments. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. We operate our business in three segments: Residential Lending, Business Purpose Lending, and Third-Party 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 primarily 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.”

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of PresentationThe consolidated financial statements presented herein are at June 30, 2021 and December 31, 2020, and for the three and six months ended June 30, 2021 and 2020. These interim unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in our annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") — as prescribed by the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) — have been condensed or omitted in these interim financial statements according to these SEC rules and regulations. Management believes that the disclosures included in these interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the company's Annual Report on Form 10-K for the year ended December 31, 2020. In the opinion of management, all normal and recurring adjustments to present fairly the financial condition of the Company at June 30, 2021 and results of operations for all periods presented have been made. The results of operations for the three and six months ended June 30, 2021 should not be construed as indicative of the results to be expected for the full year. 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 ("Legacy Sequoia"), certain entities formed in connection with the securitization of Redwood Choice expanded-prime loans and, beginning in the second quarter of 2021, Redwood Select loans ("Sequoia"), and entities formed in connection with the securitization of CoreVest single-family rental loans ("CAFL"). We also consolidate the assets and liabilities of certain Freddie Mac K-Series and Freddie Mac Seasoned Loans Structured Transaction ("SLST") securitizations in which we have invested. 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 entity 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 (loss), 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. We also consolidate two partnerships ("Servicing Investment" entities) through which we have invested in servicing-related assets. We maintain an 80% ownership interest in each entity and have determined that we are the primary beneficiary of these partnerships. See Note 4 for further discussion on principles of consolidation. Use of Estimates The preparation of financial statements requires us to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amounts and timing of credit losses, prepayment rates, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the consolidated financial statements and the reported amounts of certain revenues and expenses during the reported periods. It is likely that changes in these estimates (e.g., valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term. Our estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material. Acquisitions Refer to our Annual Report on Form 10-K for the year ended December 31, 2020 for additional information regarding the acquisitions of 5 Arches, LLC ("5 Arches") and CoreVest American Finance Lender, LLC and certain affiliated entities ("CoreVest"), including purchase price allocations. In connection with the acquisitions of 5 Arches and CoreVest in 2019, we identified and recorded finite-lived intangible assets totaling $25 million and $57 million, respectively. The table below presents the amortization period and carrying value of our intangible assets, net of accumulated amortization at June 30, 2021. Table 2.1 – Intangible Assets – Activity Intangible Assets at Acquisition Accumulated Amortization at June 30, 2021 Carrying Value at June 30, 2021 Weighted Average Amortization Period (in years) (Dollars in Thousands) Borrower network $ 45,300 $ (11,055) $ 34,245 7 Broker network 18,100 (8,447) 9,653 5 Non-compete agreements 9,500 (6,014) 3,486 3 Tradenames 4,000 (2,528) 1,472 3 Developed technology 1,800 (1,537) 263 2 Loan administration fees on existing loan assets 2,600 (2,600) — 1 Total $ 81,300 $ (32,181) $ 49,119 6 All of our intangible assets are amortized on a straight-line basis. For each of the six months ended June 30, 2021 and 2020, we recorded intangible asset amortization expense of $8 million. Estimated future amortization expense is summarized in the table below. Table 2.2 – Intangible Asset Amortization Expense by Year (In Thousands) June 30, 2021 2021 (6 months) $ 7,558 2022 12,800 2023 10,091 2024 7,073 2025 and thereafter 11,597 Total Future Intangible Asset Amortization $ 49,119 On a quarterly basis, we evaluate our finite-lived intangible assets for impairment indicators and additionally evaluate the useful lives of our intangible assets to determine if revisions to the remaining periods of amortization are warranted. We reviewed our finite-lived intangible assets and determined that the estimated lives were appropriate and that there were no indicators of impairment at June 30, 2021. A liability resulting from the contingent consideration arrangement with 5 Arches was initially recorded in 2019 at its acquisition-date fair value as part of total consideration for the acquisition of 5 Arches. During the first quarter of 2021, we distributed 806,068 shares of Redwood common stock and paid $1 million in cash in full settlement of the remaining deferred consideration associated with this acquisition.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Significant Accounting Policies Included in Note 3 to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2020 is a summary of our significant accounting policies. Provided below is a summary of additional accounting policies that are significant to the company's consolidated financial position and results of operations for the three and six months ended June 30, 2021. Other Investments Strategic Investments We have made and may make additional strategic investments in companies through our RWT Horizons venture investment strategy or at a corporate level. These investments can take the form of equity or debt and often have conversion features. Depending on the terms of the investments, we may account for these investments under the fair value option or as non-marketable equity securities under the equity method of accounting or the measurement alternative (to the extent they do not have a “readily determinable fair value,” or are not traded in a verifiable public market or are restricted for sale in the public market by a restricted stock legend or otherwise). Investments accounted for under the fair value option are carried at fair value with periodic changes in value recorded through Investment fair value changes on our consolidated statements of income (loss). For non-marketable securities, we utilize the equity method of accounting when we are able to exert significant influence over but do not control the activities of the investee. Under the equity method of accounting, we generally elect to record our share of earnings or losses from equity method investments on a one-quarter lag and we assess our investments for impairment whenever events or changes in circumstances indicate that the carrying amount of our investment might not be recoverable. Income from equity method investments is recorded in Other income, net on our consolidated statements of income (loss). Under the measurement alternative, the carrying value of our investment is measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Adjustments are determined primarily based on a market approach as of the transaction date and are recorded as a component of Other income, net on our consolidated statements of income (loss). Recent Accounting Pronouncements Newly Adopted Accounting Standards Updates ("ASUs") In October 2020, the FASB issued ASU 2020-10, "Codification Improvements." This new guidance updates various codification topics by clarifying or improving disclosure requirements. This new guidance is effective for fiscal years ending after December 15, 2020. We adopted this guidance, as required, in the first quarter of 2021, which did not have a material impact on our consolidated financial statements. In October 2020, the FASB issued ASU 2020-09, "Debt (Topic 470): Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762." This new guidance aligns certain SEC paragraphs in the codification with new SEC rules issued in March 2020 related to changes to the disclosure requirements for registered debt securities. This new guidance became effective January 4, 2021. We adopted this guidance, as required, in the first quarter of 2021, which did not have a material impact on our consolidated financial statements. In October 2020, the FASB issued ASU 2020-08, "Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs." This new guidance clarifies that an entity should reevaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. This new guidance is effective for fiscal years ending after December 15, 2020. We adopted this guidance, as required, in the first quarter of 2021, which did not have a material impact on our consolidated financial statements. 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. We adopted this guidance, as required, in the first quarter of 2021, which did not have a material impact on our 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. We adopted this guidance, as required, in the first quarter of 2021, which did not have a material impact on our consolidated financial statements. Other Recent Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40)." This new guidance simplifies the accounting for convertible debt by reducing the number of accounting models to separately present certain conversion features in equity. This new guidance is effective for fiscal years beginning after December 31, 2021. Early adoption is permitted. We plan to adopt this new guidance by the required date and do not anticipate that this update will have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope." This new guidance clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. This new guidance is effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact the adoption of this standard would have on our consolidated financial statements. Through June 30, 2021, we have not elected to apply the optional expedients and exceptions to any of our existing contracts, hedging relationships, or other transactions. Balance Sheet Netting Certain of our derivatives and short-term debt are subject to master netting arrangements or similar agreements. Under GAAP, in certain circumstances we may elect to present certain financial assets, liabilities and related collateral subject to master netting arrangements in a net position on our consolidated balance sheets. However, we do not report any of these financial assets or liabilities on a net basis, and instead present them on a gross basis on our consolidated balance sheets. The table below presents financial assets and liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with corresponding financial instruments and corresponding collateral received or pledged at June 30, 2021 and December 31, 2020. 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 June 30, 2021 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 17,746 $ — $ 17,746 $ (957) $ (11,238) $ 5,551 TBAs 2,064 — 2,064 (478) (1,393) 193 Futures 304 — 304 (194) — 110 Total Assets $ 20,114 $ — $ 20,114 $ (1,629) $ (12,631) $ 5,854 Liabilities (2) Interest rate agreements $ (957) $ — $ (957) $ 957 $ — $ — TBAs (1,367) — (1,367) 478 889 — Futures (194) — (194) 194 — — Loan warehouse debt (1,049,144) — (1,049,144) 1,049,144 — — Security repurchase agreements (80,938) — (80,938) 80,938 — — Total Liabilities $ (1,132,600) $ — $ (1,132,600) $ 1,131,711 $ 889 $ — 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, 2020 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 19,951 $ — $ 19,951 $ — $ (7,769) $ 12,182 TBAs 18,260 — 18,260 (13,423) (4,658) 179 Total Assets $ 38,211 $ — $ 38,211 $ (13,423) $ (12,427) $ 12,361 Liabilities (2) TBAs $ (15,495) $ — $ (15,495) $ 13,423 $ 1,061 $ (1,011) Loan warehouse debt (137,269) — (137,269) 137,269 — — Security repurchase agreements (77,775) — (77,775) 77,775 — — Total Liabilities $ (230,539) $ — $ (230,539) $ 228,467 $ 1,061 $ (1,011) (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 certain residential and business purpose loans, and security repurchase agreements are components of Short-term debt and Long-term debt on our consolidated balance sheets.

Principles of Consolidation

Principles of Consolidation	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of ConsolidationGAAP 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 June 30, 2021, we consolidated Legacy Sequoia, Sequoia, CAFL, Freddie Mac SLST, and Freddie Mac K-Series 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 Legacy Sequoia, 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 June 30, 2021, the estimated fair value of our investments in the consolidated Legacy Sequoia, Sequoia, CAFL, Freddie Mac SLST, and Freddie Mac K-Series entities was $4 million, $234 million, $272 million, $452 million, and $31 million, respectively. We also consolidate 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 June 30, 2021, 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, 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 servicer 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 June 30, 2021, the estimated fair value of our investment in the Servicing Investment entities was $62 million. The following table presents a summary of the assets and liabilities of these VIEs. Table 4.1 – Assets and Liabilities of Consolidated VIEs Accounted for as Collateralized Financing Entities June 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Total (Dollars in Thousands) Residential loans, held-for-investment $ 260,875 $ 2,222,553 $ — $ 2,098,624 $ — $ — $ 4,582,052 Business purpose loans, held-for-investment — — 3,263,878 — — — 3,263,878 Multifamily loans, held-for-investment — — — — 485,157 — 485,157 Other investments — — — — — 202,369 202,369 Cash and cash equivalents — — — — — 12,459 12,459 Restricted cash 148 — — — — 19,028 19,176 Accrued interest receivable 258 7,559 13,102 6,325 1,326 1,606 30,176 Other assets 659 — 12,596 1,636 — 6,277 21,168 Total Assets $ 261,940 $ 2,230,112 $ 3,289,576 $ 2,106,585 $ 486,483 $ 241,739 $ 8,616,435 Short-term debt $ — $ — $ — $ — $ — $ 163,629 $ 163,629 Accrued interest payable 124 5,521 10,183 4,490 1,200 94 21,612 Accrued expenses and other liabilities — — — — — 16,360 16,360 Asset-backed securities issued 258,211 1,990,548 3,007,596 1,650,087 454,324 — 7,360,766 Total Liabilities $ 258,335 $ 1,996,069 $ 3,017,779 $ 1,654,577 $ 455,524 $ 180,083 $ 7,562,367 Number of VIEs 20 12 14 3 1 3 53 December 31, 2020 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Total (Dollars in Thousands) Residential loans, held-for-investment $ 285,935 $ 1,565,322 $ — $ 2,221,153 $ — $ — $ 4,072,410 Business purpose loans, held-for-investment — — 3,249,194 — — — 3,249,194 Multifamily loans, held-for-investment — — — — 492,221 — 492,221 Other investments — — — — — 251,773 251,773 Cash and cash equivalents — — — — — 11,579 11,579 Restricted cash 148 — — — — 23,220 23,368 Accrued interest receivable 305 6,802 13,055 6,754 1,337 2,334 30,587 Other assets 638 — 2,930 646 — 5,723 9,937 Total Assets $ 287,026 $ 1,572,124 $ 3,265,179 $ 2,228,553 $ 493,558 $ 294,629 $ 8,141,069 Short-term debt $ — $ — $ — $ — $ — $ 208,375 $ 208,375 Accrued interest payable 141 4,697 10,278 4,846 1,177 135 21,274 Accrued expenses and other liabilities — 50 — — — 18,353 18,403 Asset-backed securities issued 282,326 1,347,357 3,013,093 1,793,620 463,966 — 6,900,362 Total Liabilities $ 282,467 $ 1,352,104 $ 3,023,371 $ 1,798,466 $ 465,143 $ 226,863 $ 7,148,414 Number of VIEs 20 10 14 2 1 3 50 The following table presents income (loss) from these VIEs for the three and six months ended June 30, 2021 and 2020. Table 4.2 – Income (Loss) from Consolidated VIEs Accounted for as Collateralized Financing Entities Three Months Ended June 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Total (Dollars in Thousands) Interest income $ 1,169 $ 14,492 $ 54,849 $ 19,506 $ 4,860 $ 4,041 $ 98,917 Interest expense (755) (11,374) (43,201) (13,927) (4,478) (1,110) (74,845) Net interest income 414 3,118 11,648 5,579 382 2,931 24,072 Non-interest income Investment fair value changes, net (216) 4,906 3,697 36,316 1,855 (2,320) 44,238 Total non-interest income, net (216) 4,906 3,697 36,316 1,855 (2,320) 44,238 General and administrative expenses — — — — — (52) (52) Other expenses — — — — — (112) (112) Income from Consolidated VIEs $ 198 $ 8,024 $ 15,345 $ 41,895 $ 2,237 $ 447 $ 68,146 Six Months Ended June 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Total (Dollars in Thousands) Interest income $ 2,517 $ 29,975 $ 103,722 $ 39,665 $ 9,646 $ 8,263 $ 193,788 Interest expense (1,630) (23,480) (81,054) (28,395) (8,834) (2,396) (145,789) Net interest income 887 6,495 22,668 11,270 812 5,867 47,999 Non-interest income Investment fair value changes, net (915) 9,804 3,411 40,433 10,776 (3,566) 59,943 Total non-interest income, net (915) 9,804 3,411 40,433 10,776 (3,566) 59,943 General and administrative expenses — — — — — (90) (90) Other expenses — — — — — (442) (442) Income (Loss) from Consolidated VIEs $ (28) $ 16,299 $ 26,079 $ 51,703 $ 11,588 $ 1,769 $ 107,410 Three Months Ended June 30, 2020 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Total (Dollars in Thousands) Interest income $ 2,685 $ 22,564 $ 32,978 $ 21,187 $ 4,870 $ 4,540 $ 88,824 Interest expense (1,518) (19,117) (24,446) (15,846) (4,380) (1,797) (67,104) Net interest income 1,167 3,447 8,532 5,341 490 2,743 21,720 Non-interest income Investment fair value changes, net (230) 39,752 16,313 26,866 1,599 3,291 87,591 Total non-interest income, net (230) 39,752 16,313 26,866 1,599 3,291 87,591 General and administrative expenses — — — — — (712) (712) Other expenses — — — — — (1,065) (1,065) Income from Consolidated VIEs $ 937 $ 43,199 $ 24,845 $ 32,207 $ 2,089 $ 4,257 $ 107,534 Six Months Ended June 30, 2020 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Total (Dollars in Thousands) Interest income $ 5,879 $ 47,647 $ 62,988 $ 43,173 $ 45,042 $ 8,623 $ 213,352 Interest expense (4,040) (40,627) (46,385) (32,022) (42,728) (3,374) (169,176) Net interest income 1,839 7,020 16,603 11,151 2,314 5,249 44,176 Non-interest income Investment fair value changes, net (621) (29,916) (51,533) (115,295) (84,910) (8,593) (290,868) Total non-interest income, net (621) (29,916) (51,533) (115,295) (84,910) (8,593) (290,868) General and administrative expenses — — — — — (743) (743) Other expenses — — — — — 817 817 Income (Loss) from Consolidated VIEs $ 1,218 $ (22,896) $ (34,930) $ (104,144) $ (82,596) $ (3,270) $ (246,618) 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. During the three months ended June 30, 2021, we called one of our consolidated CAFL entities and repaid the associated ABS issued. In association with this call, we transferred $45 million (unpaid principal balance) of loans from held-for-investment to held-for-sale. During 2020, we re-securitized subordinate securities we owned in our consolidated Freddie Mac SLST securitization trusts, through the transfer of these financial assets to a re-securitization trust that we sponsored. We retain a subordinate investment in the re-securitization trust and maintain certain discretionary rights associated with the ownership of this investment that we determined reflected a controlling financial interest in the entity, as we have both the power to direct the activities that most significantly impact the performance of the VIE and the right to receive benefits of and the obligation to absorb losses from the VIE that could potentially be significant to the VIE. Analysis of Unconsolidated VIEs with Continuing Involvement Since 2012, we have transferred residential loans to 52 Sequoia securitization entities sponsored by us that are still outstanding as of June 30, 2021, 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 mortgage servicing rights ("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 three months ended June 30, 2021, we called three of our unconsolidated Sequoia entities, and purchased $83 million (unpaid principal balance) of loans from the securitization trusts. In association with these calls, we realized a $7 million gain on the securities we owned from these called securitizations, which was recognized through Realized gains, net on our consolidated statements of income (loss). During the six months ended June 30, 2021, we called four of our unconsolidated Sequoia entities, and purchased $101 million (unpaid principal balance) of loans from the securitization trusts. In association with these calls, we realized a $9 million gain on the securities we owned from these called securitizations, which was recognized through Realized gains, net on our consolidated statements of income (loss). At June 30, 2021, we held $97 million of loans for sale at fair value that were acquired following the calls. The following table presents information related to securitization transactions that occurred during the three and six months ended June 30, 2021 and 2020. Table 4.3 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Principal balance of loans transferred $ 355,924 $ — $ 1,231,803 $ 1,573,703 Trading securities retained, at fair value 1,225 — 7,774 43,362 AFS securities retained, at fair value 522 — 1,600 3,198 The following table summarizes the cash flows during the three and six months ended June 30, 2021 and 2020 between us and the unconsolidated VIEs sponsored by us and accounted for as sales since 2012. Table 4.4 – Cash Flows Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Proceeds from new transfers $ 361,673 $ — $ 1,266,063 $ 1,610,761 MSR fees received 1,336 2,475 2,943 5,165 Funding of compensating interest, net (70) (205) (170) (297) Cash flows received on retained securities 16,764 6,788 25,393 13,369 The following table presents the key weighted-average assumptions used to value securities retained at the date of securitization for securitizations completed during the three and six months ended June 30, 2021 and 2020. Table 4.5 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 At Date of Securitization Senior IO Securities Subordinate Securities Senior IO Securities Subordinate Securities Prepayment rates 8 % 8 % N/A N/A Discount rates 15 % 7 % N/A N/A Credit loss assumptions 0.25 % 0.25 % N/A N/A Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 At Date of Securitization Senior IO Securities Subordinate Securities Senior IO Securities Subordinate Securities Prepayment rates 11 % 11 % 41 % 13 % Discount rates 15 % 6 % 16 % 6 % Credit loss assumptions 0.23 % 0.23 % 0.21 % 0.22 % The following table presents additional information at June 30, 2021 and December 31, 2020, related to unconsolidated VIEs sponsored by Redwood and accounted for as sales since 2012. Table 4.6 – Unconsolidated VIEs Sponsored by Redwood (In Thousands) June 30, 2021 December 31, 2020 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 20,527 $ 20,982 Subordinate securities, classified as AFS 140,321 136,475 Mortgage servicing rights 6,496 8,413 Maximum loss exposure (1) $ 167,344 $ 165,870 Assets transferred: Principal balance of loans outstanding $ 6,326,188 $ 7,728,432 Principal balance of loans 30+ days delinquent 58,362 138,029 (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 June 30, 2021 and December 31, 2020. Table 4.7 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood June 30, 2021 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at June 30, 2021 $ 6,496 $ 20,527 $ 140,321 Expected life (in years) (2) 2 4 8 Prepayment speed assumption (annual CPR) (2) 38 % 25 % 33 % Decrease in fair value from: 10% adverse change $ 613 $ 1,374 $ 238 25% adverse change 1,422 3,120 440 Discount rate assumption (2) 12 % 18 % 3.5 % Decrease in fair value from: 100 basis point increase $ 139 $ 462 $ 10,058 200 basis point increase 271 900 19,174 Credit loss assumption (2) N/A 0.39 % 0.39 % Decrease in fair value from: 10% higher losses N/A $ — $ 2,671 25% higher losses N/A — 6,384 December 31, 2020 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2020 $ 8,413 $ 17,333 $ 140,124 Expected life (in years) (2) 2 3 8 Prepayment speed assumption (annual CPR) (2) 37 % 31 % 33 % Decrease in fair value from: 10% adverse change $ 906 $ 1,557 $ 452 25% adverse change 2,058 3,754 2,298 Discount rate assumption (2) 12 % 21 % 5 % Decrease in fair value from: 100 basis point increase $ 196 $ 337 $ 9,769 200 basis point increase 380 659 18,650 Credit loss assumption (2) N/A 0.41 % 0.41 % Decrease in fair value from: 10% higher losses N/A $ — $ 2,409 25% higher losses N/A — 5,915 (1) Senior securities included $21 million and $17 million of interest-only securities at June 30, 2021 and December 31, 2020, 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 June 30, 2021 and December 31, 2020, grouped by asset type. Table 4.8 – Third-Party Sponsored VIE Summary (In Thousands) June 30, 2021 December 31, 2020 Mortgage-Backed Securities Senior $ 4,740 $ 11,131 Mezzanine — 2,014 Subordinate 189,298 173,523 Total Mortgage-Backed Securities 194,038 186,668 Excess MSR 12,170 14,133 Total Investments in Third-Party Sponsored VIEs $ 206,208 $ 200,801 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	6 Months Ended
	Jun. 30, 2021
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 June 30, 2021 and December 31, 2020. Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair (In Thousands) Assets Residential loans, held-for-sale at fair value $ 1,160,513 $ 1,160,513 $ 176,604 $ 176,604 Residential loans, held-for-investment 4,582,052 4,582,052 4,072,410 4,072,410 Business purpose loans, held-for-sale 418,442 418,442 245,394 245,394 Business purpose loans, held-for-investment 3,990,447 3,990,447 3,890,959 3,890,959 Multifamily loans 485,157 485,157 492,221 492,221 Real estate securities 354,886 354,886 344,125 344,125 Servicer advance investments (1) 184,551 184,551 231,489 231,489 MSRs (1) 8,721 8,721 8,815 8,815 Excess MSRs (1) 29,988 29,988 34,418 34,418 Shared home appreciation options (1) 44,319 44,319 42,440 42,440 Other financial instruments (2) 28,556 28,556 10,203 10,203 Cash and cash equivalents 421,223 421,223 461,260 461,260 Restricted cash 55,048 55,048 83,190 83,190 Derivative assets 34,305 34,305 53,238 53,238 REO (3) 15,489 17,718 8,413 9,229 Margin receivable (3) 10,269 10,269 4,758 4,758 FHLBC stock (3) 10 10 5,000 5,000 Pledged collateral (3) — — 1,177 1,177 Liabilities Short-term debt $ 1,484,999 $ 1,484,999 $ 522,609 $ 522,609 Margin payable (4) 19,503 19,503 — — Guarantee obligation (4) 8,446 5,932 10,039 7,843 Derivative liabilities 3,240 3,240 16,072 16,072 ABS issued, net Fair value 7,360,766 7,360,766 6,900,362 6,900,362 Amortized cost 176,231 180,080 200,299 204,892 Other long-term debt, net (5) 833,272 834,214 774,726 783,570 Convertible notes, net (5) 512,339 531,473 511,085 499,865 Trust preferred securities and subordinated notes, net (5) 138,697 87,188 138,674 80,910 (1) These investments are included in Other investments on our consolidated balance sheets. (2) Includes equity, debt, and loan investments included in Other investments on our consolidated balance sheets. (3) These assets are included in Other assets on our consolidated balance sheets. (4) These liabilities are included in Accrued expenses and other liabilities on our consolidated balance sheets. (5) These liabilities are included in Long-term debt, net on our consolidated balance sheets. During the three and six months ended June 30, 2021, we elected the fair value option for $4 million and $26 million of securities, respectively, $3.48 billion and $6.58 billion of residential loans (principal balance), respectively, and $527 million and $914 million of business purpose loans (principal balance), respectively. Additionally, during the three months ended June 30, 2021, we elected the fair value option for $2 million of MSRs and $2 million of other financial instruments. We anticipate electing the fair value option for all future purchases of residential and business purpose loans that we intend to sell to third parties or transfer to securitizations, for business purpose bridge loans we hold for investment, as well as for MSRs retained from sales of residential loans, and for certain securities we purchase, including IO securities and fixed-rate securities rated investment grade or higher. The following table presents the assets and liabilities that are reported at fair value on our consolidated balance sheets on a recurring basis at June 30, 2021 and December 31, 2020, 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 June 30, 2021 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 5,742,565 $ — $ — $ 5,742,565 Business purpose loans 4,408,889 — — 4,408,889 Multifamily loans 485,157 — — 485,157 Real estate securities 354,886 — — 354,886 Servicer advance investments 184,551 — — 184,551 MSRs 8,721 — — 8,721 Excess MSRs 29,988 — — 29,988 Shared home appreciation options 44,319 — — 44,319 Derivative assets 34,305 2,368 17,746 14,191 Liabilities Derivative liabilities $ 3,240 $ 1,561 $ 957 $ 722 ABS issued 7,360,766 — — 7,360,766 December 31, 2020 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 4,249,014 $ — $ — $ 4,249,014 Business purpose loans 4,136,353 — — 4,136,353 Multifamily loans 492,221 — — 492,221 Real estate securities 344,125 — — 344,125 Servicer advance investments 231,489 — — 231,489 MSRs 8,815 — — 8,815 Excess MSRs 34,418 — — 34,418 Shared home appreciation options 42,440 — — 42,440 Derivative assets 53,238 18,260 19,951 15,027 Pledged collateral 1,177 1,177 — — FHLBC stock 5,000 — 5,000 — Liabilities Derivative liabilities $ 16,072 $ 15,495 $ — $ 577 ABS issued 6,900,362 — — 6,900,362 The following table presents additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the six months ended June 30, 2021. Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets Residential Loans Business Purpose Multifamily Loans Trading Securities AFS Servicer Advance Investments MSRs Excess MSRs Shared Home Appreciation Options (In Thousands) Beginning balance - $ 4,249,014 $ 4,136,353 $ 492,221 $ 125,667 $ 218,458 $ 231,489 $ 8,815 $ 34,418 $ 42,440 Acquisitions 6,684,292 — — 26,367 1,600 — 2,283 — — Originations — 913,704 — — — — — — — Sales (4,531,811) (9,231) — (31,949) (4,785) — — — — Principal paydowns (727,627) (599,889) (3,806) (807) (28,979) (45,838) — — (5,516) Gains (losses) in net income (loss), net 70,184 (17,835) (3,258) 23,147 14,172 (1,100) (2,251) (4,430) 7,395 Unrealized losses in OCI, net — — — — 11,995 — — — — Other settlements, net (1) (1,487) (14,213) — — — — (126) — — Ending balance - $ 5,742,565 $ 4,408,889 $ 485,157 $ 142,425 $ 212,461 $ 184,551 $ 8,721 $ 29,988 $ 44,319 Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (continued) Liabilities Derivatives (2) ABS (In Thousands) Beginning balance - December 31, 2020 $ 14,450 $ 6,900,362 Acquisitions — 1,629,218 Principal paydowns — (1,055,541) Gains (losses) in net income (loss), net (197) (113,273) Other settlements, net (1) (784) — Ending balance - June 30, 2021 $ 13,469 $ 7,360,766 (1) Other settlements, net for residential and business purpose 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. (2) For the purpose of this presentation, derivative assets and liabilities, which consist of loan purchase 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 (loss) that were attributable to Level 3 assets and liabilities recorded at fair value on a recurring basis and held at June 30, 2021 and 2020. Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the three and six months ended June 30, 2021 and 2020 are not included in this presentation. Table 5.4 – Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held at June 30, 2021 and 2020 Included in Net Income Included in Net Income Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Assets Residential loans at Redwood $ 14,130 $ (359) $ 10,481 $ (746) Business purpose loans 28,404 31,187 40,003 (21,026) Net investments in consolidated Sequoia entities (1) 4,693 39,558 8,893 (30,502) Net investments in consolidated Freddie Mac SLST entities (1) 36,137 26,867 40,225 (115,295) Net investments in consolidated Freddie Mac K-Series entity (1) 1,855 1,599 10,776 (13,180) Net investments in consolidated CAFL entities (1) 2,908 17,125 2,556 (50,721) Trading securities 1,772 30,647 2,262 (79,633) Servicer advance investments (940) (136) (1,100) (6,198) MSRs (330) (1,591) 273 (16,507) Excess MSRs (2,477) 2,971 (4,430) (6,523) Shared home appreciation options 2,080 884 7,395 (6,670) Loan purchase and interest rate lock commitments 14,550 357 14,171 357 Liabilities Loan purchase commitments $ (696) $ 2,137 $ (724) $ (1,634) (1) Represents the portion of net gains or losses included in our consolidated statements of income (loss) related to loans and the associated ABS issued at our consolidated securitization entities held at June 30, 2021 and 2020, which netted together represent the change in value of our investments at the consolidated VIEs, excluding REO. The following table presents information on assets recorded at fair value on a non-recurring basis at June 30, 2021. 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 June 30, 2021. Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis at June 30, 2021 Gain (Loss) for June 30, 2021 Carrying Fair Value Measurements Using Three Months Ended Six Months Ended (In Thousands) Level 1 Level 2 Level 3 June 30, 2021 June 30, 2021 Assets REO $ 1,233 $ — $ — $ 1,233 $ (3) $ (7) The following table presents the net market valuation gains and losses recorded in each line item of our consolidated statements of income for the three and six months ended June 30, 2021 and 2020. Table 5.6 – Market Valuation Gains and Losses, Net Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ 24,988 $ (2,014) $ 48,100 $ (15,494) Residential loan purchase and forward sale commitments 51,919 621 (466) 22,056 Single-family rental loans held-for-sale, at fair value 25,222 1,210 35,470 12,677 Single-family rental loan purchase and interest rate lock commitments 744 — 744 341 Bridge loans 2,225 (1,260) 3,269 (5,194) Trading securities (1) (1,095) — (374) — Risk management derivatives, net (58,244) — 34,578 (52,832) Total mortgage banking activities, net (2) $ 45,759 $ (1,443) $ 121,321 $ (38,446) Investment Fair Value Changes, Net Residential loans at Redwood $ 1,290 $ 104 $ 1,607 $ (93,532) Single-family rental loans held-for-investment — 2,222 — (20,806) Bridge loans held-for-investment (62) 21,774 3,242 (16,828) Trading securities 2,893 42,246 23,521 (221,079) Servicer advance investments (940) (136) (1,100) (6,198) Excess MSRs (2,477) 2,971 (4,430) (6,523) Net investments in Legacy Sequoia entities (3) (216) (230) (915) (621) Net investments in Sequoia entities (3) 4,906 39,753 9,804 (29,916) Net investments in Freddie Mac SLST entities (3) 36,316 26,867 40,433 (115,295) Net investment in Freddie Mac K-Series entity (3) 1,855 1,599 10,776 (84,910) Net investments in CAFL entities (3) 3,697 17,125 3,411 (50,721) Shared home appreciation options 2,080 884 7,395 (6,670) Other investments 125 (3,005) 435 (4,892) Risk management derivatives, net — — — (59,142) Credit recoveries (losses) on AFS securities 13 54 388 (1,471) Total investment fair value changes, net $ 49,480 $ 152,228 $ 94,567 $ (718,604) Other Income MSRs $ (1,381) $ (3,955) $ (2,247) $ (22,563) Risk management derivatives, net — — — 13,966 Total other income (4) $ (1,381) $ (3,955) $ (2,247) $ (8,597) Total Market Valuation Gains (Losses), Net $ 93,858 $ 146,830 $ 213,641 $ (765,647) (1) Represents fair value changes on trading securities that are being used along with risk management derivatives to manage the mark-to-market risks associated with our residential mortgage banking operations. (2) Mortgage banking activities, net presented above does not include fee income from loan originations or acquisitions, provisions for repurchases expense, and other expenses that are components of Mortgage banking activities, net presented on our consolidated statements of income (loss), as these amounts do not represent market valuation changes. (3) 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. (4) 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. At June 30, 2021, our valuation policy and processes had not changed from those described in our Annual Report on Form 10-K for the year ended December 31, 2020. 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 June 30, 2021 Fair Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average (1) Assets Residential loans, at fair value: Jumbo fixed-rate loans $ 232,343 Prepayment rate (annual CPR) 20 - 20 % 20 % Whole loan spread to TBA price $ 2.00 - $ 2.00 $ 2.00 Whole loan spread to swap rate 215 - 215 bps 215 bps Jumbo loans committed to sell 928,170 Whole loan committed sales price $ 100.88 - $ 103.03 $ 102.38 Loans held by Legacy Sequoia (2) 260,875 Liability price N/A N/A Loans held by Sequoia (2) 2,222,553 Liability price N/A N/A Loans held by Freddie Mac SLST (2) 2,098,624 Liability price N/A N/A Business purpose loans: Single-family rental loans 418,442 Senior credit spread 70 - 70 bps 70 bps Subordinate credit spread 105 - 1,531 bps 391 bps Senior credit support 34 - 34 % 34 % IO discount rate 9 - 9 % 9 % Prepayment rate (annual CPR) 3 - 3 % 3 % Non-securitizable loan dollar price $ 82 - $ 102 $ 99 Single-family rental loans held by CAFL 3,263,878 Liability price N/A N/A Bridge loans 726,569 Discount rate 6 - 15 % 8 % Multifamily loans held by Freddie Mac K-Series (2) 485,157 Liability price N/A N/A Trading and AFS securities 354,886 Discount rate 2 - 31 % 7 % Prepayment rate (annual CPR) 8 - 62 % 28 % Default rate — - 25 % 4 % Loss severity — - 50 % 22 % CRT dollar price $ 95 - $ 113 $ 102 Servicer advance investments 184,551 Discount rate 3 - 3 % 3 % Prepayment rate (annual CPR) 20 - 30 % 21 % Expected remaining life (3) 4 - 4 years 4 years Mortgage servicing income — - 15 bps 9 bps MSRs 8,721 Discount rate 12 - 12 % 12 % Prepayment rate (annual CPR) 7 - 84 % 36 % Per loan annual cost to service $ 96 - $ 96 $ 96 Excess MSRs 29,988 Discount rate 13 - 16 % 15 % Prepayment rate (annual CPR) 21 - 30 % 24 % Excess mortgage servicing income 8 - 17 bps 11 bps Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments (continued) June 30, 2021 Fair Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average (1) Assets (continued) Shared home appreciation options $ 44,319 Discount rate 13 - 13 % 13 % Prepayment rate (annual CPR) 16 - 24 % 17 % Home price appreciation 3 - 4 % 3 % REO 1,233 Loss severity 4 - 40 % 23 % Residential loan purchase commitments, net 12,725 Committed sales price $ 102.00 - $ 103.03 $ 102.64 Pull-through rate 21 - 100 % 72 % Whole loan spread to TBA price $ 2.00 - $ 2.00 $ 2.00 Whole loan spread to swap rate 191 - 215 bps 201 bps Prepayment rate (annual CPR) 20 - 20 % 20 % Single-family rental interest rate lock commitments 744 Senior credit spread 70 - 70 bps 70 bps Subordinate credit spread 105 - 1,531 bps 391 bps Senior credit support 34 - 34 % 34 % IO discount rate 10 - 11 % 10 % Prepayment rate (annual CPR) 3 - 3 % 3 % Pull-through rate 100 - 100 % 100 % Liabilities ABS issued (2) : At consolidated Sequoia entities 2,248,759 Discount rate 1 - 18 % 3 % Prepayment rate (annual CPR) 7 - 51 % 33 % Default rate — - 39 % 2 % Loss severity 25 - 50 % 32 % At consolidated CAFL entities (4) 3,007,596 Discount rate 1 - 13 % 3 % Prepayment rate (annual CPR) 3 - 3 % 3 % Default rate 3 - 18 % 9 % Loss severity 30 - 30 % 30 % At consolidated Freddie Mac SLST entities 1,650,087 Discount rate 2 - 7 % 3 % Prepayment rate (annual CPR) 6 - 8 % 6 % Default rate 9 - 10 % 9 % Loss severity 35 - 35 % 35 % At consolidated Freddie Mac K-Series entities (4) 454,324 Discount rate 1 - 9 % 2 % (1) The weighted average input values for all loan types are based on the unpaid principal balance. The weighted average input values for all other assets and liabilities are based on relative fair value. (2) 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 June 30, 2021, the fair value of securities we owned at the consolidated Sequoia, CAFL, Freddie Mac SLST, and Freddie Mac K-Series entities was $235 million, $268 million, $450 million, and $31 million, respectively. (3) 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). (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 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. Included in Note 5 to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2020

Residential Loans

Residential Loans	6 Months Ended
	Jun. 30, 2021
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 June 30, 2021 and December 31, 2020. Table 6.1 – Classifications and Carrying Values of Residential Loans June 30, 2021 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,160,548 $ — $ — $ — $ 1,160,548 Held-for-investment at fair value — 260,875 2,222,553 2,098,624 4,582,052 Total Residential Loans $ 1,160,548 $ 260,875 $ 2,222,553 $ 2,098,624 $ 5,742,600 December 31, 2020 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 176,641 $ — $ — $ — $ 176,641 Held-for-investment at fair value — 285,935 1,565,322 2,221,153 4,072,410 Total Residential Loans $ 176,641 $ 285,935 $ 1,565,322 $ 2,221,153 $ 4,249,051 At June 30, 2021, we owned mortgage servicing rights associated with $1.10 billion (principal balance) of residential loans owned at Redwood that were 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 The following table summarizes the characteristics of residential loans held-for-sale at June 30, 2021 and December 31, 2020. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) June 30, 2021 December 31, 2020 Number of loans 1,316 198 Unpaid principal balance $ 1,135,356 $ 172,748 Fair value of loans $ 1,160,548 $ 176,641 Market value of loans pledged as collateral under short-term borrowing agreements $ 1,152,267 $ 156,355 Delinquency information Number of loans with 90+ day delinquencies 2 1 Unpaid principal balance of loans with 90+ day delinquencies $ 2,100 $ 1,882 Fair value of loans with 90+ day delinquencies $ 1,397 $ 1,223 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the three and six months ended June 30, 2021 and 2020. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Principal balance of loans acquired $ 3,484,633 $ 57,743 $ 6,580,681 $ 2,687,651 Principal balance of loans sold 3,324,919 2,280,076 5,600,751 4,936,795 Net market valuation gains (losses) recorded (1) 26,278 (2,014) 49,707 (15,494) (1) Net market valuation gains (losses) on residential loans held-for-sale are recorded primarily through Mortgage banking activities, net on our consolidated statements of income (loss). Residential Loans Held-for-Investment at Fair Value We invest in residential subordinate securities issued by Legacy Sequoia, Sequoia, and Freddie Mac SLST securitization trusts and consolidate the underlying residential loans owned by these entities for financial reporting purposes in accordance with GAAP. The following tables summarize the characteristics of the residential loans owned at consolidated Sequoia and Freddie Mac SLST entities at June 30, 2021 and December 31, 2020. Table 6.4 – Characteristics of Residential Loans Held-for-Investment June 30, 2021 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,733 2,775 12,902 Unpaid principal balance $ 295,368 $ 2,193,269 $ 2,107,256 Fair value of loans $ 260,875 $ 2,222,553 $ 2,098,624 Delinquency information Number of loans with 90+ day delinquencies (1) 43 48 1,446 Unpaid principal balance of loans with 90+ day delinquencies $ 14,878 $ 38,502 $ 261,504 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 18 3 308 Unpaid principal balance of loans in foreclosure $ 3,830 $ 2,257 $ 51,191 December 31, 2020 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,908 2,177 13,605 Unpaid principal balance $ 333,474 $ 1,550,454 $ 2,247,771 Fair value of loans $ 285,935 $ 1,565,322 $ 2,221,153 Delinquency information Number of loans with 90+ day delinquencies (1) 52 94 2,110 Unpaid principal balance of loans with 90+ day delinquencies $ 17,285 $ 74,742 $ 389,245 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 21 3 245 Unpaid principal balance of loans in foreclosure $ 4,939 $ 2,251 $ 38,610 (1) For loans held at consolidated entities, the number of loans greater than 90 days delinquent includes loans in foreclosure. (2) 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. The following table provides the activity of residential loans held-for-investment at Redwood during the three and six months ended June 30, 2021 and 2020. Table 6.5 – Activity of Residential Loans Held-for-Investment at Redwood Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Fair value of loans transferred from HFS to HFI $ — $ — $ — $ 13,258 Fair value of loans transferred from HFI to HFS — — — 1,870,986 Net market valuation gains (losses) recorded (1) — 104 — (93,532) (1) Subsequent to the transfer of these loans to our investment portfolio, net market valuation gains (losses) on residential loans held-for-investment at Redwood are recorded through Investment fair value changes, net on our consolidated statements of income (loss). The following table provides the activity of residential loans held-for-investment at consolidated entities during the three and six months ended June 30, 2021 and 2020. Table 6.6 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Legacy Freddie Mac Legacy Freddie Mac (In Thousands) Sequoia Sequoia SLST Sequoia Sequoia SLST Fair value of loans transferred from HFS to HFI (1) N/A $ 1,205,494 N/A N/A $ 270,506 N/A Net market valuation gains (losses) recorded (1) 4,863 (12,835) 22,579 8,081 93,932 48,587 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Legacy Freddie Mac Legacy Freddie Mac (In Thousands) Sequoia Sequoia SLST Sequoia Sequoia SLST Fair value of loans transferred from HFS to HFI (1) N/A $ 1,205,494 N/A N/A $ 270,506 N/A Net market valuation gains (losses) recorded (1) 12,476 (15,413) 19,014 (60,933) (16,553) (144,433) (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. (2) For loans held at our consolidated Legacy Sequoia, Sequoia, and Freddie Mac SLST entities, market value changes are based on the estimated fair value of the associated ABS issued, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . We originate and invest in business purpose loans, including single-family rental ("SFR") loans and bridge loans. The following table summarizes the classifications and carrying values of the business purpose loans owned at Redwood and at consolidated CAFL entities at June 30, 2021 and December 31, 2020. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans June 30, 2021 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 418,442 — $ — $ 418,442 Held-for-investment at fair value — 3,263,878 726,569 3,990,447 Total Business Purpose Loans $ 418,442 $ 3,263,878 $ 726,569 $ 4,408,889 December 31, 2020 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 245,394 $ — $ — $ 245,394 Held-for-investment at fair value — 3,249,194 641,765 3,890,959 Total Business Purpose Loans $ 245,394 $ 3,249,194 $ 641,765 $ 4,136,353 The following table provides the activity of business purpose loans at Redwood during the three and six months ended June 30, 2021 and 2020. Table 7.2 – Activity of Business Purpose Loans at Redwood Three Months Ended Three Months Ended (In Thousands) SFR at Redwood Bridge SFR at Redwood Bridge Principal balance of loans originated $ 312,217 $ 215,160 $ 175,876 $ 58,468 Principal balance of loans sold to third parties — 354 — 1,558 Fair value of loans transferred from HFS to HFI (1) 297,301 N/A 220,923 N/A Fair value of loans transferred from HFI to HFS (2) 44,922 — — — Mortgage banking activities income (loss) recorded (3) 25,222 978 1,210 (3,277) Investment fair value changes recorded (4) — (62) 2,222 21,774 Six Months Ended Six Months Ended (In Thousands) SFR at Redwood Bridge SFR at Redwood Bridge Principal balance of loans originated $ 565,315 $ 348,389 $ 436,005 $ 285,836 Principal balance of loans sold to third parties — 9,231 26,148 22,293 Fair value of loans transferred from HFS to HFI (1) 466,705 N/A 599,032 N/A Fair value of loans transferred from HFI to HFS (2) 44,922 — — — Mortgage banking activities income (loss) recorded (3) 35,470 1,521 11,540 (3,441) Investment fair value changes recorded (4) — 3,242 (20,806) (16,828) (1) Represents the transfer of single-family rental loans from held-for-sale to held-for-investment associated with CAFL securitizations. (2) Represents the transfer of single-family rental loans from held-for-investment to held-for-sale associated with the call of a consolidated CAFL securitization during the second quarter of 2021. (3) Represents net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio. Additionally, for the three and six months ended June 30, 2021, we recorded loan origination fee income of $7 million and $13 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). For the three and six months ended June 30, 2020, we recorded loan origination fee income of $2 million and $11 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). (4) Represents net market valuation changes for loans classified as held-for-investment. Bridge Loans Held-for-Investment The outstanding bridge loans held-for-investment at June 30, 2021 were first lien, interest-only loans with original maturities of six Note 16 for additional information on this commitment. Single-Family Rental Loans Held-for-Investment at CAFL We invest in securities issued by CAFL securitizations sponsored by CoreVest and consolidate the underlying single-family rental loans owned by these entities. The outstanding single-family rental loans held-for-investment at CAFL at June 30, 2021 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years. During the six months ended June 30, 2021, we transferred two CAFL loans with a fair value of $12 million to REO, which is included in Other assets on our consolidated balance sheets. The following table provides the activity of single-family rental loans held-for-investment at CAFL during the three and six months ended June 30, 2021 and 2020. Table 7.3 – Activity of Single-Family Rental Loans Held-for-Investment at CAFL Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Net market valuation gains (losses) recorded (1) $ (1,230) $ 169,327 $ (62,132) $ (102,590) (1) For loans held at our consolidated CAFL entities, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . Business Purpose Loan Characteristics The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at June 30, 2021 and December 31, 2020. Table 7.4 – Characteristics of Business Purpose Loans June 30, 2021 Single-Family Rental at Redwood Single-Family Rental at CAFL Bridge (Dollars in Thousands) Number of loans 112 1,121 2,471 Unpaid principal balance $ 399,900 $ 3,060,949 $ 729,149 Fair value of loans $ 418,442 $ 3,263,878 $ 726,569 Weighted average coupon 4.84 % 5.34 % 7.63 % Weighted average remaining loan term (years) 7 5 1 Market value of loans pledged as collateral under short-term debt facilities $ 122,277 N/A $ 127,133 Market value of loans pledged as collateral under long-term debt facilities $ 246,903 N/A $ 555,791 Delinquency information Number of loans with 90+ day delinquencies (1) 9 21 40 Unpaid principal balance of loans with 90+ day delinquencies $ 6,586 $ 59,841 $ 35,018 Fair value of loans with 90+ day delinquencies (2) $ 5,369 N/A $ 31,512 Number of loans in foreclosure 7 10 43 Unpaid principal balance of loans in foreclosure $ 5,976 $ 24,212 $ 32,611 Fair value of loans in foreclosure (2) $ 4,798 N/A $ 28,963 December 31, 2020 Single-Family Rental at Redwood Single-Family Rental at CAFL Bridge (Dollars in Thousands) Number of loans 65 1,094 1,725 Unpaid principal balance $ 234,475 $ 3,017,137 $ 649,532 Fair value of loans $ 245,394 $ 3,249,194 $ 641,765 Weighted average coupon 4.84 % 5.44 % 8.09 % Weighted average remaining loan term (years) 8 5 1 Market value of loans pledged as collateral under short-term debt facilities $ 34,098 N/A $ 92,931 Market value of loans pledged as collateral under long-term debt facilities $ 154,774 N/A $ 544,151 Delinquency information Number of loans with 90+ day delinquencies (1) 10 22 31 Unpaid principal balance of loans with 90+ day delinquencies $ 7,127 $ 61,440 $ 39,415 Fair value of loans with 90+ day delinquencies (2) $ 6,143 N/A $ 33,605 Number of loans in foreclosure — 10 25 Unpaid principal balance of loans in foreclosure $ — $ 24,745 $ 38,552 Fair value of loans in foreclosure (2) $ — N/A $ 33,066 (1) The number of loans greater than 90 days delinquent includes loans in foreclosure. (2) 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. We invest in multifamily subordinate securities issued by a Freddie Mac K-Series securitization trust and consolidate the underlying multifamily loans owned by this entity for financial reporting purposes in accordance with GAAP. The following table summarizes the characteristics of the multifamily loans consolidated at Redwood at June 30, 2021 and December 31, 2020. Table 8.1 – Characteristics of Multifamily Loans (Dollars in Thousands) June 30, 2021 December 31, 2020 Number of loans 28 28 Unpaid principal balance $ 459,002 $ 462,808 Fair value of loans $ 485,157 $ 492,221 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 4 5 Delinquency information Number of loans with 90+ day delinquencies — — Number of loans in foreclosure — — The outstanding multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at June 30, 2021 were first-lien, fixed-rate loans that were originated in 2015. The following table provides the activity of multifamily loans held-for-investment during the three and six months ended June 30, 2021 and 2020. Table 8.2 – Activity of Multifamily Loans Held-for-Investment Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Net market valuation gains (losses) recorded (1) $ (2,528) $ 18,591 $ (3,258) $ (63,840) (1) Net market valuation gains (losses) on multifamily loans held-for-investment are recorded through Investment fair value changes, net on our consolidated statements of income (loss). For loans held at our consolidated Freddie Mac K-Series entity, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 4.2 .

Business Purpose Loans

Business Purpose Loans	6 Months Ended
	Jun. 30, 2021
Receivables [Abstract]
Business Purpose 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 June 30, 2021 and December 31, 2020. Table 6.1 – Classifications and Carrying Values of Residential Loans June 30, 2021 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,160,548 $ — $ — $ — $ 1,160,548 Held-for-investment at fair value — 260,875 2,222,553 2,098,624 4,582,052 Total Residential Loans $ 1,160,548 $ 260,875 $ 2,222,553 $ 2,098,624 $ 5,742,600 December 31, 2020 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 176,641 $ — $ — $ — $ 176,641 Held-for-investment at fair value — 285,935 1,565,322 2,221,153 4,072,410 Total Residential Loans $ 176,641 $ 285,935 $ 1,565,322 $ 2,221,153 $ 4,249,051 At June 30, 2021, we owned mortgage servicing rights associated with $1.10 billion (principal balance) of residential loans owned at Redwood that were 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 The following table summarizes the characteristics of residential loans held-for-sale at June 30, 2021 and December 31, 2020. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) June 30, 2021 December 31, 2020 Number of loans 1,316 198 Unpaid principal balance $ 1,135,356 $ 172,748 Fair value of loans $ 1,160,548 $ 176,641 Market value of loans pledged as collateral under short-term borrowing agreements $ 1,152,267 $ 156,355 Delinquency information Number of loans with 90+ day delinquencies 2 1 Unpaid principal balance of loans with 90+ day delinquencies $ 2,100 $ 1,882 Fair value of loans with 90+ day delinquencies $ 1,397 $ 1,223 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the three and six months ended June 30, 2021 and 2020. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Principal balance of loans acquired $ 3,484,633 $ 57,743 $ 6,580,681 $ 2,687,651 Principal balance of loans sold 3,324,919 2,280,076 5,600,751 4,936,795 Net market valuation gains (losses) recorded (1) 26,278 (2,014) 49,707 (15,494) (1) Net market valuation gains (losses) on residential loans held-for-sale are recorded primarily through Mortgage banking activities, net on our consolidated statements of income (loss). Residential Loans Held-for-Investment at Fair Value We invest in residential subordinate securities issued by Legacy Sequoia, Sequoia, and Freddie Mac SLST securitization trusts and consolidate the underlying residential loans owned by these entities for financial reporting purposes in accordance with GAAP. The following tables summarize the characteristics of the residential loans owned at consolidated Sequoia and Freddie Mac SLST entities at June 30, 2021 and December 31, 2020. Table 6.4 – Characteristics of Residential Loans Held-for-Investment June 30, 2021 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,733 2,775 12,902 Unpaid principal balance $ 295,368 $ 2,193,269 $ 2,107,256 Fair value of loans $ 260,875 $ 2,222,553 $ 2,098,624 Delinquency information Number of loans with 90+ day delinquencies (1) 43 48 1,446 Unpaid principal balance of loans with 90+ day delinquencies $ 14,878 $ 38,502 $ 261,504 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 18 3 308 Unpaid principal balance of loans in foreclosure $ 3,830 $ 2,257 $ 51,191 December 31, 2020 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,908 2,177 13,605 Unpaid principal balance $ 333,474 $ 1,550,454 $ 2,247,771 Fair value of loans $ 285,935 $ 1,565,322 $ 2,221,153 Delinquency information Number of loans with 90+ day delinquencies (1) 52 94 2,110 Unpaid principal balance of loans with 90+ day delinquencies $ 17,285 $ 74,742 $ 389,245 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 21 3 245 Unpaid principal balance of loans in foreclosure $ 4,939 $ 2,251 $ 38,610 (1) For loans held at consolidated entities, the number of loans greater than 90 days delinquent includes loans in foreclosure. (2) 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. The following table provides the activity of residential loans held-for-investment at Redwood during the three and six months ended June 30, 2021 and 2020. Table 6.5 – Activity of Residential Loans Held-for-Investment at Redwood Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Fair value of loans transferred from HFS to HFI $ — $ — $ — $ 13,258 Fair value of loans transferred from HFI to HFS — — — 1,870,986 Net market valuation gains (losses) recorded (1) — 104 — (93,532) (1) Subsequent to the transfer of these loans to our investment portfolio, net market valuation gains (losses) on residential loans held-for-investment at Redwood are recorded through Investment fair value changes, net on our consolidated statements of income (loss). The following table provides the activity of residential loans held-for-investment at consolidated entities during the three and six months ended June 30, 2021 and 2020. Table 6.6 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Legacy Freddie Mac Legacy Freddie Mac (In Thousands) Sequoia Sequoia SLST Sequoia Sequoia SLST Fair value of loans transferred from HFS to HFI (1) N/A $ 1,205,494 N/A N/A $ 270,506 N/A Net market valuation gains (losses) recorded (1) 4,863 (12,835) 22,579 8,081 93,932 48,587 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Legacy Freddie Mac Legacy Freddie Mac (In Thousands) Sequoia Sequoia SLST Sequoia Sequoia SLST Fair value of loans transferred from HFS to HFI (1) N/A $ 1,205,494 N/A N/A $ 270,506 N/A Net market valuation gains (losses) recorded (1) 12,476 (15,413) 19,014 (60,933) (16,553) (144,433) (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. (2) For loans held at our consolidated Legacy Sequoia, Sequoia, and Freddie Mac SLST entities, market value changes are based on the estimated fair value of the associated ABS issued, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . We originate and invest in business purpose loans, including single-family rental ("SFR") loans and bridge loans. The following table summarizes the classifications and carrying values of the business purpose loans owned at Redwood and at consolidated CAFL entities at June 30, 2021 and December 31, 2020. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans June 30, 2021 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 418,442 — $ — $ 418,442 Held-for-investment at fair value — 3,263,878 726,569 3,990,447 Total Business Purpose Loans $ 418,442 $ 3,263,878 $ 726,569 $ 4,408,889 December 31, 2020 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 245,394 $ — $ — $ 245,394 Held-for-investment at fair value — 3,249,194 641,765 3,890,959 Total Business Purpose Loans $ 245,394 $ 3,249,194 $ 641,765 $ 4,136,353 The following table provides the activity of business purpose loans at Redwood during the three and six months ended June 30, 2021 and 2020. Table 7.2 – Activity of Business Purpose Loans at Redwood Three Months Ended Three Months Ended (In Thousands) SFR at Redwood Bridge SFR at Redwood Bridge Principal balance of loans originated $ 312,217 $ 215,160 $ 175,876 $ 58,468 Principal balance of loans sold to third parties — 354 — 1,558 Fair value of loans transferred from HFS to HFI (1) 297,301 N/A 220,923 N/A Fair value of loans transferred from HFI to HFS (2) 44,922 — — — Mortgage banking activities income (loss) recorded (3) 25,222 978 1,210 (3,277) Investment fair value changes recorded (4) — (62) 2,222 21,774 Six Months Ended Six Months Ended (In Thousands) SFR at Redwood Bridge SFR at Redwood Bridge Principal balance of loans originated $ 565,315 $ 348,389 $ 436,005 $ 285,836 Principal balance of loans sold to third parties — 9,231 26,148 22,293 Fair value of loans transferred from HFS to HFI (1) 466,705 N/A 599,032 N/A Fair value of loans transferred from HFI to HFS (2) 44,922 — — — Mortgage banking activities income (loss) recorded (3) 35,470 1,521 11,540 (3,441) Investment fair value changes recorded (4) — 3,242 (20,806) (16,828) (1) Represents the transfer of single-family rental loans from held-for-sale to held-for-investment associated with CAFL securitizations. (2) Represents the transfer of single-family rental loans from held-for-investment to held-for-sale associated with the call of a consolidated CAFL securitization during the second quarter of 2021. (3) Represents net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio. Additionally, for the three and six months ended June 30, 2021, we recorded loan origination fee income of $7 million and $13 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). For the three and six months ended June 30, 2020, we recorded loan origination fee income of $2 million and $11 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). (4) Represents net market valuation changes for loans classified as held-for-investment. Bridge Loans Held-for-Investment The outstanding bridge loans held-for-investment at June 30, 2021 were first lien, interest-only loans with original maturities of six Note 16 for additional information on this commitment. Single-Family Rental Loans Held-for-Investment at CAFL We invest in securities issued by CAFL securitizations sponsored by CoreVest and consolidate the underlying single-family rental loans owned by these entities. The outstanding single-family rental loans held-for-investment at CAFL at June 30, 2021 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years. During the six months ended June 30, 2021, we transferred two CAFL loans with a fair value of $12 million to REO, which is included in Other assets on our consolidated balance sheets. The following table provides the activity of single-family rental loans held-for-investment at CAFL during the three and six months ended June 30, 2021 and 2020. Table 7.3 – Activity of Single-Family Rental Loans Held-for-Investment at CAFL Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Net market valuation gains (losses) recorded (1) $ (1,230) $ 169,327 $ (62,132) $ (102,590) (1) For loans held at our consolidated CAFL entities, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . Business Purpose Loan Characteristics The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at June 30, 2021 and December 31, 2020. Table 7.4 – Characteristics of Business Purpose Loans June 30, 2021 Single-Family Rental at Redwood Single-Family Rental at CAFL Bridge (Dollars in Thousands) Number of loans 112 1,121 2,471 Unpaid principal balance $ 399,900 $ 3,060,949 $ 729,149 Fair value of loans $ 418,442 $ 3,263,878 $ 726,569 Weighted average coupon 4.84 % 5.34 % 7.63 % Weighted average remaining loan term (years) 7 5 1 Market value of loans pledged as collateral under short-term debt facilities $ 122,277 N/A $ 127,133 Market value of loans pledged as collateral under long-term debt facilities $ 246,903 N/A $ 555,791 Delinquency information Number of loans with 90+ day delinquencies (1) 9 21 40 Unpaid principal balance of loans with 90+ day delinquencies $ 6,586 $ 59,841 $ 35,018 Fair value of loans with 90+ day delinquencies (2) $ 5,369 N/A $ 31,512 Number of loans in foreclosure 7 10 43 Unpaid principal balance of loans in foreclosure $ 5,976 $ 24,212 $ 32,611 Fair value of loans in foreclosure (2) $ 4,798 N/A $ 28,963 December 31, 2020 Single-Family Rental at Redwood Single-Family Rental at CAFL Bridge (Dollars in Thousands) Number of loans 65 1,094 1,725 Unpaid principal balance $ 234,475 $ 3,017,137 $ 649,532 Fair value of loans $ 245,394 $ 3,249,194 $ 641,765 Weighted average coupon 4.84 % 5.44 % 8.09 % Weighted average remaining loan term (years) 8 5 1 Market value of loans pledged as collateral under short-term debt facilities $ 34,098 N/A $ 92,931 Market value of loans pledged as collateral under long-term debt facilities $ 154,774 N/A $ 544,151 Delinquency information Number of loans with 90+ day delinquencies (1) 10 22 31 Unpaid principal balance of loans with 90+ day delinquencies $ 7,127 $ 61,440 $ 39,415 Fair value of loans with 90+ day delinquencies (2) $ 6,143 N/A $ 33,605 Number of loans in foreclosure — 10 25 Unpaid principal balance of loans in foreclosure $ — $ 24,745 $ 38,552 Fair value of loans in foreclosure (2) $ — N/A $ 33,066 (1) The number of loans greater than 90 days delinquent includes loans in foreclosure. (2) 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. We invest in multifamily subordinate securities issued by a Freddie Mac K-Series securitization trust and consolidate the underlying multifamily loans owned by this entity for financial reporting purposes in accordance with GAAP. The following table summarizes the characteristics of the multifamily loans consolidated at Redwood at June 30, 2021 and December 31, 2020. Table 8.1 – Characteristics of Multifamily Loans (Dollars in Thousands) June 30, 2021 December 31, 2020 Number of loans 28 28 Unpaid principal balance $ 459,002 $ 462,808 Fair value of loans $ 485,157 $ 492,221 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 4 5 Delinquency information Number of loans with 90+ day delinquencies — — Number of loans in foreclosure — — The outstanding multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at June 30, 2021 were first-lien, fixed-rate loans that were originated in 2015. The following table provides the activity of multifamily loans held-for-investment during the three and six months ended June 30, 2021 and 2020. Table 8.2 – Activity of Multifamily Loans Held-for-Investment Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Net market valuation gains (losses) recorded (1) $ (2,528) $ 18,591 $ (3,258) $ (63,840) (1) Net market valuation gains (losses) on multifamily loans held-for-investment are recorded through Investment fair value changes, net on our consolidated statements of income (loss). For loans held at our consolidated Freddie Mac K-Series entity, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 4.2 .

Multifamily Loans

Multifamily Loans	6 Months Ended
	Jun. 30, 2021
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 June 30, 2021 and December 31, 2020. Table 6.1 – Classifications and Carrying Values of Residential Loans June 30, 2021 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,160,548 $ — $ — $ — $ 1,160,548 Held-for-investment at fair value — 260,875 2,222,553 2,098,624 4,582,052 Total Residential Loans $ 1,160,548 $ 260,875 $ 2,222,553 $ 2,098,624 $ 5,742,600 December 31, 2020 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 176,641 $ — $ — $ — $ 176,641 Held-for-investment at fair value — 285,935 1,565,322 2,221,153 4,072,410 Total Residential Loans $ 176,641 $ 285,935 $ 1,565,322 $ 2,221,153 $ 4,249,051 At June 30, 2021, we owned mortgage servicing rights associated with $1.10 billion (principal balance) of residential loans owned at Redwood that were 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 The following table summarizes the characteristics of residential loans held-for-sale at June 30, 2021 and December 31, 2020. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) June 30, 2021 December 31, 2020 Number of loans 1,316 198 Unpaid principal balance $ 1,135,356 $ 172,748 Fair value of loans $ 1,160,548 $ 176,641 Market value of loans pledged as collateral under short-term borrowing agreements $ 1,152,267 $ 156,355 Delinquency information Number of loans with 90+ day delinquencies 2 1 Unpaid principal balance of loans with 90+ day delinquencies $ 2,100 $ 1,882 Fair value of loans with 90+ day delinquencies $ 1,397 $ 1,223 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the three and six months ended June 30, 2021 and 2020. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Principal balance of loans acquired $ 3,484,633 $ 57,743 $ 6,580,681 $ 2,687,651 Principal balance of loans sold 3,324,919 2,280,076 5,600,751 4,936,795 Net market valuation gains (losses) recorded (1) 26,278 (2,014) 49,707 (15,494) (1) Net market valuation gains (losses) on residential loans held-for-sale are recorded primarily through Mortgage banking activities, net on our consolidated statements of income (loss). Residential Loans Held-for-Investment at Fair Value We invest in residential subordinate securities issued by Legacy Sequoia, Sequoia, and Freddie Mac SLST securitization trusts and consolidate the underlying residential loans owned by these entities for financial reporting purposes in accordance with GAAP. The following tables summarize the characteristics of the residential loans owned at consolidated Sequoia and Freddie Mac SLST entities at June 30, 2021 and December 31, 2020. Table 6.4 – Characteristics of Residential Loans Held-for-Investment June 30, 2021 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,733 2,775 12,902 Unpaid principal balance $ 295,368 $ 2,193,269 $ 2,107,256 Fair value of loans $ 260,875 $ 2,222,553 $ 2,098,624 Delinquency information Number of loans with 90+ day delinquencies (1) 43 48 1,446 Unpaid principal balance of loans with 90+ day delinquencies $ 14,878 $ 38,502 $ 261,504 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 18 3 308 Unpaid principal balance of loans in foreclosure $ 3,830 $ 2,257 $ 51,191 December 31, 2020 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,908 2,177 13,605 Unpaid principal balance $ 333,474 $ 1,550,454 $ 2,247,771 Fair value of loans $ 285,935 $ 1,565,322 $ 2,221,153 Delinquency information Number of loans with 90+ day delinquencies (1) 52 94 2,110 Unpaid principal balance of loans with 90+ day delinquencies $ 17,285 $ 74,742 $ 389,245 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 21 3 245 Unpaid principal balance of loans in foreclosure $ 4,939 $ 2,251 $ 38,610 (1) For loans held at consolidated entities, the number of loans greater than 90 days delinquent includes loans in foreclosure. (2) 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. The following table provides the activity of residential loans held-for-investment at Redwood during the three and six months ended June 30, 2021 and 2020. Table 6.5 – Activity of Residential Loans Held-for-Investment at Redwood Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Fair value of loans transferred from HFS to HFI $ — $ — $ — $ 13,258 Fair value of loans transferred from HFI to HFS — — — 1,870,986 Net market valuation gains (losses) recorded (1) — 104 — (93,532) (1) Subsequent to the transfer of these loans to our investment portfolio, net market valuation gains (losses) on residential loans held-for-investment at Redwood are recorded through Investment fair value changes, net on our consolidated statements of income (loss). The following table provides the activity of residential loans held-for-investment at consolidated entities during the three and six months ended June 30, 2021 and 2020. Table 6.6 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Legacy Freddie Mac Legacy Freddie Mac (In Thousands) Sequoia Sequoia SLST Sequoia Sequoia SLST Fair value of loans transferred from HFS to HFI (1) N/A $ 1,205,494 N/A N/A $ 270,506 N/A Net market valuation gains (losses) recorded (1) 4,863 (12,835) 22,579 8,081 93,932 48,587 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Legacy Freddie Mac Legacy Freddie Mac (In Thousands) Sequoia Sequoia SLST Sequoia Sequoia SLST Fair value of loans transferred from HFS to HFI (1) N/A $ 1,205,494 N/A N/A $ 270,506 N/A Net market valuation gains (losses) recorded (1) 12,476 (15,413) 19,014 (60,933) (16,553) (144,433) (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. (2) For loans held at our consolidated Legacy Sequoia, Sequoia, and Freddie Mac SLST entities, market value changes are based on the estimated fair value of the associated ABS issued, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . We originate and invest in business purpose loans, including single-family rental ("SFR") loans and bridge loans. The following table summarizes the classifications and carrying values of the business purpose loans owned at Redwood and at consolidated CAFL entities at June 30, 2021 and December 31, 2020. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans June 30, 2021 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 418,442 — $ — $ 418,442 Held-for-investment at fair value — 3,263,878 726,569 3,990,447 Total Business Purpose Loans $ 418,442 $ 3,263,878 $ 726,569 $ 4,408,889 December 31, 2020 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 245,394 $ — $ — $ 245,394 Held-for-investment at fair value — 3,249,194 641,765 3,890,959 Total Business Purpose Loans $ 245,394 $ 3,249,194 $ 641,765 $ 4,136,353 The following table provides the activity of business purpose loans at Redwood during the three and six months ended June 30, 2021 and 2020. Table 7.2 – Activity of Business Purpose Loans at Redwood Three Months Ended Three Months Ended (In Thousands) SFR at Redwood Bridge SFR at Redwood Bridge Principal balance of loans originated $ 312,217 $ 215,160 $ 175,876 $ 58,468 Principal balance of loans sold to third parties — 354 — 1,558 Fair value of loans transferred from HFS to HFI (1) 297,301 N/A 220,923 N/A Fair value of loans transferred from HFI to HFS (2) 44,922 — — — Mortgage banking activities income (loss) recorded (3) 25,222 978 1,210 (3,277) Investment fair value changes recorded (4) — (62) 2,222 21,774 Six Months Ended Six Months Ended (In Thousands) SFR at Redwood Bridge SFR at Redwood Bridge Principal balance of loans originated $ 565,315 $ 348,389 $ 436,005 $ 285,836 Principal balance of loans sold to third parties — 9,231 26,148 22,293 Fair value of loans transferred from HFS to HFI (1) 466,705 N/A 599,032 N/A Fair value of loans transferred from HFI to HFS (2) 44,922 — — — Mortgage banking activities income (loss) recorded (3) 35,470 1,521 11,540 (3,441) Investment fair value changes recorded (4) — 3,242 (20,806) (16,828) (1) Represents the transfer of single-family rental loans from held-for-sale to held-for-investment associated with CAFL securitizations. (2) Represents the transfer of single-family rental loans from held-for-investment to held-for-sale associated with the call of a consolidated CAFL securitization during the second quarter of 2021. (3) Represents net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio. Additionally, for the three and six months ended June 30, 2021, we recorded loan origination fee income of $7 million and $13 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). For the three and six months ended June 30, 2020, we recorded loan origination fee income of $2 million and $11 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). (4) Represents net market valuation changes for loans classified as held-for-investment. Bridge Loans Held-for-Investment The outstanding bridge loans held-for-investment at June 30, 2021 were first lien, interest-only loans with original maturities of six Note 16 for additional information on this commitment. Single-Family Rental Loans Held-for-Investment at CAFL We invest in securities issued by CAFL securitizations sponsored by CoreVest and consolidate the underlying single-family rental loans owned by these entities. The outstanding single-family rental loans held-for-investment at CAFL at June 30, 2021 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years. During the six months ended June 30, 2021, we transferred two CAFL loans with a fair value of $12 million to REO, which is included in Other assets on our consolidated balance sheets. The following table provides the activity of single-family rental loans held-for-investment at CAFL during the three and six months ended June 30, 2021 and 2020. Table 7.3 – Activity of Single-Family Rental Loans Held-for-Investment at CAFL Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Net market valuation gains (losses) recorded (1) $ (1,230) $ 169,327 $ (62,132) $ (102,590) (1) For loans held at our consolidated CAFL entities, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . Business Purpose Loan Characteristics The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at June 30, 2021 and December 31, 2020. Table 7.4 – Characteristics of Business Purpose Loans June 30, 2021 Single-Family Rental at Redwood Single-Family Rental at CAFL Bridge (Dollars in Thousands) Number of loans 112 1,121 2,471 Unpaid principal balance $ 399,900 $ 3,060,949 $ 729,149 Fair value of loans $ 418,442 $ 3,263,878 $ 726,569 Weighted average coupon 4.84 % 5.34 % 7.63 % Weighted average remaining loan term (years) 7 5 1 Market value of loans pledged as collateral under short-term debt facilities $ 122,277 N/A $ 127,133 Market value of loans pledged as collateral under long-term debt facilities $ 246,903 N/A $ 555,791 Delinquency information Number of loans with 90+ day delinquencies (1) 9 21 40 Unpaid principal balance of loans with 90+ day delinquencies $ 6,586 $ 59,841 $ 35,018 Fair value of loans with 90+ day delinquencies (2) $ 5,369 N/A $ 31,512 Number of loans in foreclosure 7 10 43 Unpaid principal balance of loans in foreclosure $ 5,976 $ 24,212 $ 32,611 Fair value of loans in foreclosure (2) $ 4,798 N/A $ 28,963 December 31, 2020 Single-Family Rental at Redwood Single-Family Rental at CAFL Bridge (Dollars in Thousands) Number of loans 65 1,094 1,725 Unpaid principal balance $ 234,475 $ 3,017,137 $ 649,532 Fair value of loans $ 245,394 $ 3,249,194 $ 641,765 Weighted average coupon 4.84 % 5.44 % 8.09 % Weighted average remaining loan term (years) 8 5 1 Market value of loans pledged as collateral under short-term debt facilities $ 34,098 N/A $ 92,931 Market value of loans pledged as collateral under long-term debt facilities $ 154,774 N/A $ 544,151 Delinquency information Number of loans with 90+ day delinquencies (1) 10 22 31 Unpaid principal balance of loans with 90+ day delinquencies $ 7,127 $ 61,440 $ 39,415 Fair value of loans with 90+ day delinquencies (2) $ 6,143 N/A $ 33,605 Number of loans in foreclosure — 10 25 Unpaid principal balance of loans in foreclosure $ — $ 24,745 $ 38,552 Fair value of loans in foreclosure (2) $ — N/A $ 33,066 (1) The number of loans greater than 90 days delinquent includes loans in foreclosure. (2) 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. We invest in multifamily subordinate securities issued by a Freddie Mac K-Series securitization trust and consolidate the underlying multifamily loans owned by this entity for financial reporting purposes in accordance with GAAP. The following table summarizes the characteristics of the multifamily loans consolidated at Redwood at June 30, 2021 and December 31, 2020. Table 8.1 – Characteristics of Multifamily Loans (Dollars in Thousands) June 30, 2021 December 31, 2020 Number of loans 28 28 Unpaid principal balance $ 459,002 $ 462,808 Fair value of loans $ 485,157 $ 492,221 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 4 5 Delinquency information Number of loans with 90+ day delinquencies — — Number of loans in foreclosure — — The outstanding multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at June 30, 2021 were first-lien, fixed-rate loans that were originated in 2015. The following table provides the activity of multifamily loans held-for-investment during the three and six months ended June 30, 2021 and 2020. Table 8.2 – Activity of Multifamily Loans Held-for-Investment Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Net market valuation gains (losses) recorded (1) $ (2,528) $ 18,591 $ (3,258) $ (63,840) (1) Net market valuation gains (losses) on multifamily loans held-for-investment are recorded through Investment fair value changes, net on our consolidated statements of income (loss). For loans held at our consolidated Freddie Mac K-Series entity, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 4.2 .

Real Estate Securities

Real Estate Securities	6 Months Ended
	Jun. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Real Estate Securities	Real Estate Securities We invest in real estate securities that we create and retain from our Sequoia securitizations or acquire from third parties. The following table presents the fair values of our real estate securities by type at June 30, 2021 and December 31, 2020. Table 9.1 – Fair Values of Real Estate Securities by Type (In Thousands) June 30, 2021 December 31, 2020 Trading $ 142,425 $ 125,667 Available-for-sale 212,461 218,458 Total Real Estate Securities $ 354,886 $ 344,125 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. Subordinate securities are all interests below mezzanine. Exclusive of 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 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"). The following table presents the fair value of trading securities by position and collateral type at June 30, 2021 and December 31, 2020. Table 9.2 – Fair Value of Trading Securities by Position (In Thousands) June 30, 2021 December 31, 2020 Senior Interest-only securities (1) $ 25,267 $ 28,464 Total Senior 25,267 28,464 Mezzanine Sequoia securities — 3,649 Total Mezzanine — 3,649 Subordinate RPL securities 60,887 47,448 Multifamily securities 8,266 5,592 Other third-party residential securities 48,005 40,514 Total Subordinate 117,158 93,554 Total Trading Securities $ 142,425 $ 125,667 (1) Includes $17 million and $13 million of Sequoia certificated mortgage servicing rights at June 30, 2021 and December 31, 2020, respectively. The following table presents the unpaid principal balance of trading securities by position and collateral type at June 30, 2021 and December 31, 2020. Table 9.3 – Unpaid Principal Balance of Trading Securities by Position (In Thousands) June 30, 2021 December 31, 2020 Senior (1) $ — $ — Mezzanine — 3,577 Subordinate 208,381 242,278 Total Trading Securities $ 208,381 $ 245,855 (1) Our senior trading securities include interest-only securities, for which there is no principal balance. The following table provides the activity of trading securities during the three and six months ended June 30, 2021 and 2020. Table 9.4 – Trading Securities Activity Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Principal balance of securities acquired $ 1,750 $ 10,250 $ 17,630 $ 66,721 Principal balance of securities sold 18,068 85,747 52,811 704,614 Net market valuation gains (losses) recorded (1) 1,798 42,246 23,147 (221,079) (1) Net market valuation gains (losses) on trading securities are recorded through Investment fair value changes, net and Mortgage banking activities, net on our consolidated statements of income (loss). AFS Securities The following table presents the fair value of our available-for-sale securities by position and collateral type at June 30, 2021 and December 31, 2020. Table 9.5 – Fair Value of Available-for-Sale Securities by Position (In Thousands) June 30, 2021 December 31, 2020 Mezzanine Other third-party residential securities $ — $ 2,014 Total Mezzanine — 2,014 Subordinate Sequoia securities 140,321 136,475 Multifamily securities 34,213 43,663 Other third-party residential securities 37,927 36,306 Total Subordinate 212,461 216,444 Total AFS Securities $ 212,461 $ 218,458 The following table provides the activity of available-for-sale securities during the three and six months ended June 30, 2021 and 2020. Table 9.6 – Available-for-Sale Securities Activity Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Fair value of securities acquired $ 522 $ — $ 1,600 $ 31,181 Fair value of securities sold 2,585 8,736 4,785 55,193 Net realized gains recorded 1,307 783 1,507 4,635 During the three months ended June 30, 2021, we called three of our unconsolidated Sequoia entities, and purchased $83 million (unpaid principal balance) of loans from the securitization trusts. In association with these calls, we realized a $7 million gain on the securities we owned from these securitizations, which was recognized through Realized gains, net on our consolidated statements of income (loss). During the six months ended June 30, 2021, we called four of our unconsolidated Sequoia entities, and purchased $101 million (unpaid principal balance) of loans from the securitization trusts. In association with these calls, we realized a $9 million gain on the securities we owned from these securitizations, which was recognized through Realized gains, net on our consolidated statements of income (loss). 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 June 30, 2021, we had $31 million of AFS securities with contractual maturities less than five years, $4 million with contractual maturities greater than five years but less than ten years, and the remainder of our AFS securities had contractual maturities greater than ten years. The following table presents the components of carrying value (which equals fair value) of AFS securities at June 30, 2021 and December 31, 2020. Table 9.7 – Carrying Value of AFS Securities June 30, 2021 (In Thousands) Mezzanine Subordinate Total Principal balance $ — $ 254,784 $ 254,784 Credit reserve — (40,349) (40,349) Unamortized discount, net — (90,216) (90,216) Amortized cost — 124,219 124,219 Gross unrealized gains — 88,321 88,321 Gross unrealized losses — (79) (79) CECL allowance — — — Carrying Value $ — $ 212,461 $ 212,461 December 31, 2020 (In Thousands) Mezzanine Subordinate Total Principal balance $ 2,000 $ 281,284 $ 283,284 Credit reserve — (44,967) (44,967) Unamortized discount, net — (95,718) (95,718) Amortized cost 2,000 140,599 142,599 Gross unrealized gains 14 77,280 77,294 Gross unrealized losses — (1,047) (1,047) CECL allowance — (388) (388) Carrying Value $ 2,014 $ 216,444 $ 218,458 The following table presents the changes for the three and six months ended June 30, 2021, in unamortized discount and designated credit reserves on residential AFS securities. Table 9.8 – Changes in Unamortized Discount and Designated Credit Reserves on AFS Securities Three Months Ended Six Months Ended Credit Unamortized Credit Unamortized (In Thousands) Beginning balance $ 44,947 $ 94,188 $ 44,967 $ 95,718 Amortization of net discount — (1,569) — (3,183) Realized credit losses (112) — (249) — Acquisitions 890 368 2,825 1,208 Sales, calls, other (718) (7,429) (992) (9,729) Transfers to (release of) credit reserves, net (4,658) 4,658 (6,202) 6,202 Ending Balance $ 40,349 $ 90,216 $ 40,349 $ 90,216 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 June 30, 2021 and December 31, 2020. Table 9.9 – Components of Fair Value of AFS Securities by Holding Periods Less Than 12 Consecutive Months 12 Consecutive Months or Longer Amortized Unrealized Fair Amortized Unrealized Fair (In Thousands) June 30, 2021 $ — $ — $ — $ 3,600 $ (79) $ 3,521 December 31, 2020 9,129 (1,047) 7,920 — — — At June 30, 2021, after giving effect to purchases, sales, and extinguishment due to credit losses, our consolidated balance sheet included 88 AFS securities, of which two were in a continuous unrealized loss position for 12 consecutive months or longer. At December 31, 2020, our consolidated balance sheet included 96 AFS securities, of which five were in an unrealized loss position and zero were in a continuous unrealized loss position for 12 consecutive months or longer. Evaluating AFS Securities for Credit Losses Gross unrealized losses on our AFS securities were $0.1 million at June 30, 2021. We evaluate all securities in an unrealized loss position to determine if the impairment is credit-related (resulting in an allowance for credit losses recorded in earnings) or non-credit-related (resulting in an unrealized loss through other comprehensive income). At June 30, 2021, 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 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. At June 30, 2021, our current expected credit loss ("CECL") allowance related to our AFS securities was zero. AFS securities for which an allowance 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 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 security credit losses. The table below summarizes the weighted average of the significant credit quality indicators we used for the credit loss allowance on our AFS securities at June 30, 2021. Table 9.10 – Significant Credit Quality Indicators June 30, 2021 Subordinate Securities Default rate 0.35% Loss severity 18% The following table details the activity related to the allowance for credit losses for AFS securities for the three and six months ended June 30, 2021. Table 9.11 – Rollforward of Allowance for Credit Losses Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 (In Thousands) Beginning balance allowance for credit losses $ 13 $ 388 Additions to allowance for credit losses on securities for which credit losses were not previously recorded — — Additional increases (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period (13) (388) Allowance on purchased financial assets with credit deterioration — — Reduction to allowance for securities sold during the period — — Reduction to allowance for securities we intend to sell or more likely than not will be required to sell — — Write-offs charged against allowance — — Recoveries of amounts previously written off — — Ending balance of allowance for credit losses $ — $ — Gains and losses from the sale of AFS securities are recorded as Realized gains, net, in our consolidated statements of income (loss). The following table presents the gross realized gains and losses on sales and calls of AFS securities for the three and six months ended June 30, 2021 and 2020. Table 9.12 – Gross Realized Gains and Losses on AFS Securities Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Gross realized gains - sales $ 1,307 $ 1,074 $ 1,507 $ 8,779 Gross realized gains - calls 6,687 — 9,095 — Gross realized losses - sales — (291) — (4,144) Total Realized Gains on Sales and Calls of AFS Securities, net $ 7,994 $ 783 $ 10,602 $ 4,635

Other Investments

Other Investments	6 Months Ended
	Jun. 30, 2021
Investments, All Other Investments [Abstract]
Other Investments	Other Investments Other investments at June 30, 2021 and December 31, 2020 are summarized in the following table. Table 10.1 – Components of Other Investments (In Thousands) June 30, 2021 December 31, 2020 Servicer advance investments $ 184,551 $ 231,489 Shared home appreciation options 44,319 42,440 Excess MSRs 29,988 34,418 Mortgage servicing rights 8,721 8,815 Other 41,153 31,013 Total Other Investments $ 308,732 $ 348,175 Servicer advance investments 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 (Refer to our Annual Report on Form 10-K for the year ended December 31, 2020 for additional information regarding the transactions). At June 30, 2021, we had funded $94 million of total capital to the SA Buyers (see Note 16 for additional detail). At June 30, 2021, our servicer advance investments had a carrying value of $185 million and were associated with a portfolio of residential mortgage loans with an unpaid principal balance of $8.03 billion. The outstanding servicer advance receivables associated with this investment were $172 million at June 30, 2021, 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 June 30, 2021 and December 31, 2020. Table 10.2 – Components of Servicer Advance Receivables (In Thousands) June 30, 2021 December 31, 2020 Principal and interest advances $ 80,741 $ 110,923 Escrow advances (taxes and insurance advances) 68,534 79,279 Corporate advances 22,543 27,454 Total Servicer Advance Receivables $ 171,818 $ 217,656 We account for our servicer advance investments at fair value and during the three and six months ended June 30, 2021, we recorded $2 million and $5 million of interest income, respectively, through Other interest income, and recorded net market valuation losses of $1 million for both periods through Investment fair value changes, net in our consolidated statements of income (loss). During the three and six months ended June 30, 2020, we recorded $3 million and $6 million of interest income, respectively, through Other interest income, and recorded net market valuation losses of $0.1 million and $6 million, respectively, through Investment fair value changes, net in our consolidated statements of income (loss). Shared Home Appreciation Options In 2019, we entered into a flow purchase agreement to acquire shared home appreciation options. At June 30, 2021, we had acquired $47 million of shared home appreciation options under this flow purchase agreement. We account for these investments under the fair value option and during the three and six months ended June 30, 2021, we recorded net market valuation gains of $2 million and $7 million, respectively, related to these assets through Investment fair value changes, net on our consolidated statements of income (loss). During the three and six months ended June 30, 2020, we recorded a net market valuation gain of $1 million and a net market valuation loss of $7 million, respectively, related to these assets through Investment fair value changes, net on our consolidated statements of income (loss). Excess MSRs In association with our servicer advance investments described above, we (through our consolidated SA Buyers) invested in excess MSRs associated with the same portfolio of legacy residential mortgage-backed securitizations. Additionally, we own excess MSRs associated with specified pools of multifamily loans. We account for our excess MSRs at fair value and during the three and six months ended June 30, 2021, we recognized $3 million and $6 million of interest income, respectively, through Other interest income, and recorded net market valuation losses of $2 million and $4 million, respectively, through Investment fair value changes, net on our consolidated statements of income (loss). During the three and six months ended June 30, 2020, we recognized $3 million and $6 million of interest income, respectively, through Other interest income, and recorded a net market valuation gain of $3 million and a net market valuation loss of $7 million, respectively, through Investment fair value changes, net on our consolidated statements of income (loss). 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 sold to third parties. During both the three and six months ended June 30, 2021, we retained $2 million of MSRs from sales of residential loans to third parties. We hold our MSR investments at our taxable REIT subsidiaries.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2021
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 June 30, 2021 and December 31, 2020. Table 11.1 – Fair Value and Notional Amount of Derivative Financial Instruments June 30, 2021 December 31, 2020 Fair Notional Fair Notional (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 264 $ 133,000 $ 224 $ 42,000 TBAs 2,064 730,000 18,260 3,520,000 Interest rate futures 304 81,500 — — Swaptions 17,482 2,100,000 19,727 1,585,000 Assets - Other Derivatives Loan purchase and interest rate lock commitments 14,191 2,332,511 15,027 2,617,254 Total Assets $ 34,305 $ 5,377,011 $ 53,238 $ 7,764,254 Liabilities - Risk Management Derivatives Interest rate swaps $ (957) $ 87,500 $ — $ — TBAs (1,367) 730,000 (15,495) 3,105,000 Interest rate futures (194) 140,000 — — Liabilities - Other Derivatives Loan purchase commitments (722) 164,971 (577) 477,153 Total Liabilities $ (3,240) $ 1,122,471 $ (16,072) $ 3,582,153 Total Derivative Financial Instruments, Net $ 31,065 $ 6,499,482 $ 37,166 $ 11,346,407 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 June 30, 2021, we were party to swaps and swaptions with an aggregate notional amount of $2.32 billion, TBA agreements with an aggregate notional amount of $1.46 billion, and interest rate futures contracts with an aggregate notional amount of $222 million. At December 31, 2020, we were party to swaps and swaptions with an aggregate notional amount of $1.63 billion and TBA agreements with an aggregate notional amount of $6.63 billion. During the three and six months ended June 30, 2021, risk management derivatives had a net market valuation loss of $58 million and a net market valuation gain of $35 million, respectively. During the three and six months ended June 30, 2020, risk management derivatives had net market valuation losses of zero and $98 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 (loss). Loan Purchase and Interest Rate Lock Commitments LPCs and IRLCs that qualify as derivatives are recorded at their estimated fair values. For the three and six months ended June 30, 2021, LPCs and IRLCs had net market valuation gains of $53 million and $0.3 million, respectively, that were recorded in Mortgage banking activities, net on our consolidated statements of income (loss). For the three and six months ended June 30, 2020, LPCs and IRLCs had net market valuation gains of $1 million and $22 million, respectively, that were recorded in Mortgage banking activities, net on our consolidated statements of income (loss). Derivatives Designated as Cash Flow Hedges To manage the variability in interest expense related to a portion of our long-term debt that is included in our consolidated balance sheets for financial reporting purposes, we designated certain interest rate swaps as cash flow hedges. During the first quarter of 2020, we terminated and settled all of our outstanding derivatives that had been designated as cash flow hedges for our long-term debt, with a payment of $84 million. For interest rate agreements previously designated as cash flow hedges, our total unrealized loss reported in Accumulated other comprehensive income was $79 million and $81 million at June 30, 2021 and December 31, 2020, respectively. We are amortizing this loss into interest expense over the remaining term of the debt they were originally hedging. As of June 30, 2021, we expect to amortize $4 million of realized losses related to terminated cash flow hedges into interest expense over the next twelve months. For both the three and six months ended June 30, 2021, we did not have any derivatives designated as cash flow hedges. For the three and six months ended June 30, 2020, changes in the values of designated cash flow hedges were zero and negative $33 million, respectively, and were recorded in Accumulated other comprehensive income, a component of equity. The following table illustrates the impact on interest expense of our interest rate agreements accounted for as cash flow hedges for the three and six months ended June 30, 2021 and 2020. Table 11.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Net interest expense on cash flows hedges $ — $ — $ — $ (860) Realized net losses reclassified from other comprehensive income (1,028) (1,029) (2,046) (1,108) Total Interest Expense $ (1,028) $ (1,029) $ (2,046) $ (1,968) Derivative Counterparty Credit Risk As discussed in our Annual Report on Form 10-K for the year ended December 31, 2020, we consider counterparty risk as part of our fair value assessments of all derivative financial instruments at each quarter-end. At June 30, 2021, we assessed this risk as remote and did not record an associated specific valuation adjustment. At June 30, 2021, we were in compliance with our derivative counterparty ISDA agreements.

Other Assets and Liabilities

Other Assets and Liabilities	6 Months Ended
	Jun. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets and Liabilities	Other Assets and Liabilities Other assets at June 30, 2021 and December 31, 2020 are summarized in the following table. Table 12.1 – Components of Other Assets (In Thousands) June 30, 2021 December 31, 2020 Accrued interest receivable $ 41,366 $ 39,445 Investment receivable 38,281 43,176 REO 15,489 8,413 Operating lease right-of-use assets 14,370 15,012 Margin receivable 10,269 4,758 Fixed assets and leasehold improvements (1) 7,202 4,203 Pledged collateral — 1,177 Other 9,455 14,404 Total Other Assets $ 136,432 $ 130,588 (1) Fixed assets and leasehold improvements had a basis of $14 million and accumulated depreciation of $7 million at June 30, 2021. Accrued expenses and other liabilities at June 30, 2021 and December 31, 2020 are summarized in the following table. Table 12.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) June 30, 2021 December 31, 2020 Accrued compensation $ 42,737 $ 24,393 Accrued interest payable 35,615 34,858 Margin payable 19,503 14,728 Operating lease liabilities 15,997 16,687 Payable to minority partner 15,414 16,941 Unsettled trades 13,952 — Residential loan and MSR repurchase reserve 8,709 8,631 Guarantee obligations 8,446 10,039 Accrued income taxes payable 5,395 5,614 Bridge loan holdbacks 5,394 5,708 Accrued operating expenses 4,938 5,509 Deferred consideration — 14,579 Other 15,605 21,653 Total Accrued Expenses and Other Liabilities $ 191,705 $ 179,340 Deferred Consideration The deferred consideration presented in the table above is related to our acquisition of 5 Arches in 2019. During the first quarter of 2021, we distributed 806,068 shares of Redwood common stock and paid $1 million in cash in full settlement of the remaining deferred consideration associated with this acquisition. REO The following table summarizes the activity and carrying values of REO assets held at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL entities during the six months ended June 30, 2021. Table 12.3 – REO Activity Six Months Ended June 30, 2021 (In Thousands) Redwood Bridge Legacy Sequoia Freddie Mac SLST CAFL Total Balance at beginning of period $ 4,600 $ 638 $ 646 $ 2,529 $ 8,413 Transfers to REO 2,289 65 1,548 11,924 15,826 Liquidations (1) (5,972) (39) (766) (1,949) (8,726) Changes in fair value, net 428 (5) 208 (655) (24) Balance at End of Period $ 1,345 $ 659 $ 1,636 $ 11,849 $ 15,489 (1) For the six months ended June 30, 2021, REO liquidations resulted in less than $0.1 million of realized losses, which were recorded in Investment fair value changes, net on our consolidated statements of income (loss). The following table provides the detail of REO assets at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL entities at June 30, 2021 and December 31, 2020. Table 12.4 – REO Assets Number of REO assets Redwood Bridge Legacy Sequoia Freddie Mac SLST CAFL Total At June 30, 2021 3 3 18 2 26 At December 31, 2020 3 3 9 2 17 Refer to our Annual Report on Form 10-K for the year ended December 31, 2020 for additional descriptions of our other assets and liabilities.

Short-Term Debt

Short-Term Debt	6 Months Ended
	Jun. 30, 2021
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 June 30, 2021, 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 June 30, 2021 and December 31, 2020. Table 13.1 – Short-Term Debt June 30, 2021 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate (1) Maturity Weighted Average Days Until Maturity Facilities Residential loan warehouse 6 $ 1,049,144 $ 2,350,000 1.87 % 8/2021-3/2022 211 Business purpose loan warehouse 2 191,288 355,497 2.99 % 3/2022-5/2022 260 Real estate securities repo 3 80,938 — 1.53 % 7/2021-9/2021 35 Total Short-Term Debt Facilities 11 1,321,370 Servicer advance financing 1 163,629 260,000 1.89 % 11/2021 153 Total Short-Term Debt $ 1,484,999 December 31, 2020 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate (1) Maturity Weighted Average Days Until Maturity Facilities Residential loan warehouse 4 $ 137,269 $ 1,300,000 2.45 % 1/2021-11/2021 268 Business purpose loan warehouse 2 99,190 500,000 3.37 % 5/2022-6/2022 521 Real estate securities repo 3 77,775 — 2.24 % 1/2021-3/2021 36 Total Short-Term Debt Facilities 9 314,234 Servicer advance financing 1 208,375 335,000 1.95 % 11/2021 334 Total Short-Term Debt $ 522,609 (1) Borrowings under our facilities are generally uncommitted and charged interest based on a specified margin over the 1- or 3-month LIBOR. The following table below presents the value of loans, securities, and other assets pledged as collateral under our short-term debt at June 30, 2021 and December 31, 2020. Table 13.2 – Collateral for Short-Term Debt (In Thousands) June 30, 2021 December 31, 2020 Collateral Type Held-for-sale residential loans $ 1,152,267 $ 156,355 Business purpose loans 249,410 127,029 Real estate securities On balance sheet 16,435 23,193 Sequoia securitizations (1) 62,387 63,105 Freddie Mac K-Series securitization (1) 30,834 28,255 Total real estate securities owned 109,656 114,553 Restricted cash and other assets 1,709 315 Total Collateral for Short-Term Debt Facilities 1,513,042 398,252 Cash 12,442 9,978 Restricted cash 19,028 23,220 Servicer advances 171,818 217,656 Total Collateral for Servicer Advance Financing 203,288 250,854 Total Collateral for Short-Term Debt $ 1,716,330 $ 649,106 (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 three and six months ended June 30, 2021, the average balances of our short-term debt facilities were $1.85 billion and $1.42 billion, respectively. At June 30, 2021 and December 31, 2020, accrued interest payable on our short-term debt facilities was $2 million and $1 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 June 30, 2021, the accrued interest payable balance on this financing was $0.1 million and the unamortized capitalized commitment costs were $0.4 million. We also maintain a $10 million committed line of credit with a financial institution that is secured by certain mortgage-backed securities with a fair market value of $2 million at June 30, 2021. At both June 30, 2021 and December 31, 2020, 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 at June 30, 2021. Table 13.3 – Short-Term Debt by Collateral Type and Remaining Maturities June 30, 2021 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for-sale residential loans $ — $ 119,462 $ 929,682 $ 1,049,144 Business purpose loans — — 191,288 191,288 Real estate securities 44,527 36,411 — 80,938 Total Secured Short-Term Debt 44,527 155,873 1,120,970 1,321,370 Servicer advance financing — — 163,629 163,629 Total Short-Term Debt $ 44,527 $ 155,873 $ 1,284,599 $ 1,484,999

Asset-Backed Securities Issued

Asset-Backed Securities Issued	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Asset-Backed Securities Issued	Asset-Backed Securities Issued The carrying values of ABS issued by our consolidated securitization entities at June 30, 2021 and December 31, 2020, along with other selected information, are summarized in the following table. Table 14.1 – Asset-Backed Securities Issued June 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST (1) Freddie Mac Total (Dollars in Thousands) Certificates with principal balance $ 291,083 $ 1,946,901 $ 2,746,648 $ 1,718,754 $ 422,534 $ 7,125,920 Interest-only certificates 788 15,282 167,460 21,455 11,627 216,612 Market valuation adjustments (33,660) 28,365 93,488 86,109 20,163 194,465 ABS Issued, Net $ 258,211 $ 1,990,548 $ 3,007,596 $ 1,826,318 $ 454,324 $ 7,536,997 Range of weighted average interest rates, by series 0.49% to 1.46% 2.31% to 5.10% 2.62% to 5.20% 3.50% to 4.75% 3.41 % Stated maturities 2024 - 2036 2047 - 2051 2021 - 2031 2028 - 2059 2025 Number of series 20 12 14 3 1 December 31, 2020 Legacy Sequoia CAFL Freddie Mac SLST (1) Freddie Mac K-Series Total (Dollars in Thousands) Certificates with principal balance $ 329,039 $ 1,309,957 $ 2,716,425 $ 1,866,145 $ 416,339 $ 6,637,905 Interest-only certificates 1,092 4,591 162,934 23,335 13,026 204,978 Market valuation adjustments (47,805) 32,809 133,734 104,439 34,601 257,778 ABS Issued, Net $ 282,326 $ 1,347,357 $ 3,013,093 $ 1,993,919 $ 463,966 $ 7,100,661 Range of weighted average interest rates, by series 0.35% to 1.55% 2.25% to 5.04% 2.68% to 5.42% 3.50% to 4.75% 3.39 % Stated maturities 2024 - 2036 2047 - 2050 2021 - 2031 2028 - 2059 2025 Number of series 20 10 14 3 1 (1) Includes $179 million and $205 million (principal balance) of ABS issued by a re-securitization trust sponsored by Redwood and accounted for at amortized cost at June 30, 2021 and December 31, 2020, respectively. During the third quarter of 2020, we transferred all of the subordinate securities we owned from two consolidated re-performing loan securitization VIEs sponsored by Freddie Mac SLST to a re-securitization trust, which we determined was a VIE and for which we determined we are the primary beneficiary. At issuance, we sold $210 million (principal balance) of ABS issued to third parties and retained 100% of the remaining beneficial ownership interest in the trust through ownership of a subordinate security issued by the trust. The ABS was issued at a discount and we have elected to account for the ABS issued at amortized cost. At June 30, 2021, the principal balance of the ABS issued was $179 million, and the debt discount and deferred issuance costs were $3 million, for a carrying value of $176 million. The stated coupon of the ABS issued was 4.75% at issuance and the final stated maturity occurs in July 2059. The ABS issued is subject to optional redemption and interest rate step-ups prior to the stated maturity according to the terms of the respective governing agreements. 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 June 30, 2021, the majority of the ABS issued and outstanding had contractual maturities beyond five years. See Note 4 for detail on the carrying value components of the collateral for ABS issued and outstanding. The following table summarizes the accrued interest payable on ABS issued at June 30, 2021 and December 31, 2020. Interest due on consolidated ABS issued is payable monthly. Table 14.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) June 30, 2021 December 31, 2020 Legacy Sequoia $ 123 $ 141 Sequoia 5,521 4,697 CAFL 10,183 10,122 Freddie Mac SLST (1) 5,200 5,656 Freddie Mac K-Series 1,200 1,177 Total Accrued Interest Payable on ABS Issued $ 22,227 $ 21,793 (1) Includes accrued interest payable on ABS issued by a re-securitization trust sponsored by Redwood.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt The table below summarizes our long-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at June 30, 2021. Table 15.1 – Long-Term Debt June 30, 2021 (Dollars in Thousands) Borrowings Unamortized Deferred Issuance Costs / Discount Net Carrying Value Limit Weighted Average Interest Rate (1) Final Maturity Facilities Recourse Subordinate Securities Financing Sequoia $ 160,102 $ (521) $ 159,581 N/A 4.21 % 9/2024 CAFL 102,424 (505) 101,919 N/A 4.21 % 2/2025 Non-Recourse BPL Financing Facility A 45,582 (444) 45,138 45,582 L + 3.85% 7/2022 Facility B 57,616 (199) 57,417 250,000 L + 3.00% N/A Recourse BPL Financing Facility C 269,100 — 269,100 450,000 L + 3.40% 6/2023 Facility D 200,275 (158) 200,117 250,000 L + 3.00% 9/2023 Total Long-Term Debt Facilities 835,099 (1,827) 833,272 Convertible notes 4.75% convertible senior notes 198,629 (2,356) 196,273 N/A 4.75 % 8/2023 5.625% convertible senior notes 150,200 (2,450) 147,750 N/A 5.625 % 7/2024 5.75% exchangeable senior notes 172,092 (3,776) 168,316 N/A 5.75 % 10/2025 Trust preferred securities and subordinated notes 139,500 (803) 138,697 N/A L + 2.25% 7/2037 Total Long-Term Debt $ 1,495,520 $ (11,212) $ 1,484,308 (1) Variable rate borrowings are based on 1- or 3-month LIBOR ("L" in the table above) plus an applicable spread. Non-Recourse BPL Financing Facilities In the second quarter of 2021, we repaid one of our non-recourse BPL financing facilities that had a balance of $242 million at March 31, 2021, and entered into a new non-recourse facility to finance business purpose bridge loans with a total borrowing capacity of $250 million (see details for "Facility B" above). Recourse BPL Financing Facilities In the second quarter of 2021, we reclassified one of our recourse facilities with a borrowing capacity of $450 million from short-term to long-term debt as we amended the terms of this facility, including an extension of its maturity (see details for "Facility C" above). The following table below presents the value of loans, securities, and other assets pledged as collateral under our long-term debt at June 30, 2021 and December 31, 2020. Table 15.2 – Collateral for Long-Term Debt (In Thousands) June 30, 2021 December 31, 2020 Collateral Type Bridge loans $ 555,791 $ 544,151 Single-family rental loans 246,903 154,774 Real estate securities Sequoia securitizations (1) 256,910 249,446 CAFL securitizations (1) 112,207 114,044 Total real estate securities owned 369,117 363,490 Other BPL investments — 21,414 Restricted cash — 1,100 Total Collateral for Long-Term Debt $ 1,171,811 $ 1,084,929 (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. The following table summarizes the accrued interest payable on long-term debt at June 30, 2021 and December 31, 2020. Table 15.3 – Accrued Interest Payable on Long-Term Debt (In Thousands) June 30, 2021 December 31, 2020 Long-term debt facilities $ 704 $ 1,799 Convertible notes 4.75% convertible senior notes 3,564 3,564 5.625% convertible senior notes 3,896 3,896 5.75% exchangeable senior notes 2,474 2,474 Trust preferred securities and subordinated notes 585 669 Total Accrued Interest Payable on Long-Term Debt $ 11,223 $ 12,402

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Commitments At June 30, 2021, we were obligated under seven non-cancelable operating leases with expiration dates through 2031 for $19 million of cumulative lease payments. Our operating lease expense was $2 million for both six-month periods ended June 30, 2021 and 2020. The following table presents our future lease commitments at June 30, 2021. Table 16.1 – Future Lease Commitments by Year (In Thousands) June 30, 2021 2021 (6 months) $ 1,854 2022 3,714 2023 3,235 2024 2,411 2025 1,983 2026 and thereafter 6,128 Total Lease Commitments 19,325 Less: Imputed interest (3,328) Operating Lease Liabilities $ 15,997 During the six months ended June 30, 2021, we did not enter into any office leases. During the three months ended June 30, 2021, we increased our operating lease right-of-use assets and liabilities by $1 million as the result of an amendment to one of our existing leases. At June 30, 2021, our operating lease liabilities were $16 million, which were a component of Accrued expenses and other liabilities Other assets We determined that none 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 June 30, 2021, the weighted-average remaining lease term and weighted-average discount rate for our leases was 7 years and 4.9%, respectively. Commitment to Fund Bridge Loans As of June 30, 2021, we had commitments to fund up to $374 million of additional advances on existing 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. At June 30, 2021, we carried a $0.3 million contingent liability related to these commitments to fund construction advances. 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 $0.3 million at June 30, 2021. During the three and six months ended June 30, 2021, we recorded net market valuation gains of $1 million and $2 million, respectively, related to this liability through Mortgage banking activities, net on our consolidated statements of income (loss). During the three and six months ended June 30, 2020, we recorded a net market valuation gain of $2 million and a net market valuation loss of $2 million, respectively, related to this liability through Mortgage banking activities, net on our consolidated statements of income (loss). Commitment to Fund Partnerships In 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. 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 June 30, 2021, the maximum potential amount of future payments we could be required to make under these arrangements was $44 million and this amount was partially 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 June 30, 2021, we had not incurred any losses under these arrangements. For the three and six months ended June 30, 2021, other income related to these arrangements was $1 million and $2 million, respectively, and net market valuation losses related to these investments were less than $0.1 million for both periods. For the three and six months ended June 30, 2020, other income related to these arrangements was $1 million and $2 million, respectively, and net market valuation losses related to these investments were less than $0.2 million and $1 million, respectively. All of the loans in the reference pools subject to these risk-sharing arrangements were originated in 2014 and 2015, and at June 30, 2021, the loans had an unpaid principal balance of $702 million and a weighted average FICO score of 756 (at origination) and LTV ratio of 75% (at origination). At June 30, 2021, $29 million of the loans were 90 days or more delinquent, of which one of these loans with an unpaid principal balance of $0.2 million was in foreclosure. At June 30, 2021, the carrying value of our guarantee obligation was $8 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 June 30, 2021 and December 31, 2020, assets of such SPEs totaled $34 million and $46 million, respectively, and liabilities of such SPEs totaled $8 million and $10 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. Additionally, for certain loans we sold during the second quarter of 2020 that were previously held for investment, we have a direct obligation to repurchase these loans in the event of any early payment defaults (or "EPDs") by the underlying mortgage borrowers within certain specified periods following the sales. At both June 30, 2021 and December 31, 2020, our repurchase reserve associated with our residential loans and MSRs was $9 million and was recorded in Accrued expenses and other liabilities on our consolidated balance sheets. We received one and five repurchase requests during the six months ended June 30, 2021 and 2020, respectively, and repurchased one and zero loans, respectively. During the six months ended June 30, 2021 and 2020, we recorded repurchase provisions of $0.3 million and $4 million, respectively, that were recorded in Mortgage banking activities, net; Investment fair value changes, net; and Other income on our consolidated statements of income (loss). Loss Contingencies — Litigation, Claims and Demands There is no significant update regarding the litigation matters described in Note 16 within the financial statements included in Redwood’s Annual Report on Form 10-K for the year ended December 31, 2020 under the heading “Loss Contingencies - Litigation.” At June 30, 2021, the aggregate amount of loss contingency reserves established in respect of the FHLB-Seattle and Schwab litigation matters described in our Annual Report on Form 10-K for the year ended December 31, 2020 was $2 million. At June 30, 2021, the aggregate amount of our accrual for estimated costs associated with the "Residential Loan Seller Demands" described in our Annual Report on Form 10-K for the year ended December 31, 2020 was $2 million, a portion of which is contingent on the successful completion of future residential loan purchase and sale transactions with certain counterparties. We believe we have either resolved or adequately accrued for any unresolved Residential Loan Seller Demands and that there are no other Residential Loan Seller Demands that are reasonably possible to result in a material loss.

Equity

Equity	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Equity	Equity The following table provides a summary of changes to accumulated other comprehensive income by component for the three and six months ended June 30, 2021 and 2020. Table 17.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 (In Thousands) Available-for-Sale Securities Interest Rate Agreements Accounted for as Cash Flow Hedges Available-for-Sale Securities Interest Rate Agreements Accounted for as Cash Flow Hedges Balance at beginning of period $ 84,527 $ (79,539) $ (1,865) $ (83,666) Other comprehensive income 11,224 — 52,393 — Amounts reclassified from other (7,500) 1,028 2,718 1,029 Net current-period other comprehensive income 3,724 1,028 55,111 1,029 Balance at End of Period $ 88,251 $ (78,511) $ 53,246 $ (82,637) Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 (In Thousands) Available-for-Sale Securities Interest Rate Agreements Accounted for as Cash Flow Hedges Available-for-Sale Securities Interest Rate Agreements Accounted for as Cash Flow Hedges Balance at beginning of period $ 76,336 $ (80,557) $ 92,452 $ (50,939) Other comprehensive income (loss) 22,210 — (28,126) (32,806) Amounts reclassified from other (10,295) 2,046 (11,080) 1,108 Net current-period other comprehensive income (loss) 11,915 2,046 (39,206) (31,698) Balance at End of Period $ 88,251 $ (78,511) $ 53,246 $ (82,637) The following table provides a summary of reclassifications out of accumulated other comprehensive income for the three and six months ended June 30, 2021 and 2020. Table 17.2 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amount Reclassified From Affected Line Item in the Three Months Ended June 30, (In Thousands) Income Statement 2021 2020 Net Realized (Gain) Loss on AFS Securities Decrease in allowance for credit losses on AFS securities Investment fair value changes, net $ (13) $ (54) Gain on sale of AFS securities Realized gains, net (7,487) 2,772 $ (7,500) $ 2,718 Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 1,028 $ 1,029 $ 1,028 $ 1,029 Amount Reclassified From Affected Line Item in the Six Months Ended June 30, (In Thousands) Income Statement 2021 2020 Net Realized (Gain) Loss on AFS Securities (Decrease) increase in allowance for credit losses on AFS securities Investment fair value changes, net $ (388) $ 1,471 Gain on sale of AFS securities Realized gains, net (9,907) (12,551) $ (10,295) $ (11,080) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 2,046 $ 1,108 $ 2,046 $ 1,108 Issuance of Common Stock We have an established program to sell up to an aggregate of $175 million of common stock from time to time in at-the-market ("ATM") offerings, with $110 million of remaining capacity available at June 30, 2021. During the six months ended June 30, 2021, we did not issue any shares under this program. Direct Stock Purchase and Dividend Reinvestment Plan During both the six months ended June 30, 2021 and 2020, we did not issue any shares of common stock through our Direct Stock Purchase and Dividend Reinvestment Plan. Earnings (Loss) per Common Share The following table provides the basic and diluted earnings (loss) per common share computations for the three and six months ended June 30, 2021 and 2020. Table 17.3 – Basic and Diluted Earnings (Loss) per Common Share Three Months Ended June 30, Six Months Ended June 30, (In Thousands, except Share Data) 2021 2020 2021 2020 Basic Earnings (Loss) per Common Share: Net income (loss) attributable to Redwood $ 90,025 $ 165,444 $ 187,282 $ (777,954) Less: Dividends and undistributed earnings allocated to participating securities (3,149) (4,528) (6,458) (1,011) Net income (loss) allocated to common shareholders $ 86,876 $ 160,916 $ 180,824 $ (778,965) Basic weighted average common shares outstanding 112,921,070 114,383,289 112,337,984 114,229,928 Basic Earnings (Loss) per Common Share $ 0.77 $ 1.41 $ 1.61 $ (6.82) Diluted Earnings (Loss) per Common Share: Net income (loss) attributable to Redwood $ 90,025 $ 165,444 $ 187,282 $ (777,954) Less: Dividends and undistributed earnings allocated to participating securities (2,869) (3,116) (5,829) (1,011) Adjust for interest expense and gain on extinguishment of convertible notes for the period, net of tax 6,990 (15,835) 13,971 — Net income (loss) allocated to common shareholders $ 94,146 $ 146,493 $ 195,424 $ (778,965) Weighted average common shares outstanding 112,921,070 114,383,289 112,337,984 114,229,928 Net effect of dilutive equity awards 273,139 — 234,353 — Net effect of assumed convertible notes conversion to common shares 28,566,875 32,715,790 28,566,875 — Diluted weighted average common shares outstanding 141,761,084 147,099,079 141,139,212 114,229,928 Diluted Earnings (Loss) per Common Share $ 0.66 $ 1.00 $ 1.38 $ (6.82) 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 six months ended June 30, 2021, 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 six months ended June 30, 2020, 34.1 million of common shares related to the assumed conversion of our convertible notes were antidilutive and were excluded in the calculation of diluted earnings per share. For the three and six months ended June 30, 2021, the number of outstanding equity awards that were antidilutive totaled 18,645 and 17,053, respectively. For the three and six months ended June 30, 2020, the number of outstanding equity awards that were antidilutive totaled 11,561 and 16,405, 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. During the six months ended June 30, 2021, we did not repurchase any shares. At June 30, 2021, $78 million of the current authorization remained available for the repurchase of shares of our common stock and we also continued to be authorized to repurchase outstanding debt securities.

Equity Compensation Plans

Equity Compensation Plans	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Equity Compensation Plans	Equity Compensation Plans At June 30, 2021 and December 31, 2020, 7,443,250 and 7,957,891 shares of common stock, respectively, were available for grant under our Incentive Plan. The unamortized compensation cost of awards issued under the Incentive Plan, which are settled by delivery of shares of common stock and purchases under the Employee Stock Purchase Plan, totaled $27 million at June 30, 2021, as shown in the following table. Table 18.1 – Activities of Equity Compensation Costs by Award Type Six Months Ended June 30, 2021 (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 $ 564 $ 3,540 $ 17,766 $ 5,794 $ — $ 27,664 Equity grants — 2,370 3,141 — 259 5,770 Performance-based valuation adjustment — — — 1,072 — 1,072 Equity grant forfeitures (2) (610) (550) — — (1,162) Equity compensation expense (271) (752) (3,629) (1,355) (130) (6,137) Unrecognized Compensation Cost at End of Period $ 291 $ 4,548 $ 16,728 $ 5,511 $ 129 $ 27,207 At June 30, 2021, the weighted average amortization period remaining for all of our equity awards was one year. Restricted Stock Awards ("RSAs") At June 30, 2021 and December 31, 2020, there were 29,693 and 78,998 shares, respectively, of RSAs outstanding. Restrictions on these shares lapse through 2022. During the six months ended June 30, 2021, there were no RSAs granted, restrictions on 49,305 RSAs lapsed and those shares were distributed, and no RSAs were forfeited. Restricted Stock Units ("RSUs") At June 30, 2021 and December 31, 2020, there were 453,811 and 282,424 shares, respectively, of RSUs outstanding. Restrictions on these shares lapse through 2025. During the six months ended June 30, 2021, there were 272,261 RSUs granted, 62,494 RSUs distributed, and 38,380 RSUs forfeited. Deferred Stock Units (“DSUs”) At June 30, 2021 and December 31, 2020, there were 3,081,201 and 2,805,144 DSUs, respectively, outstanding of which 1,437,464 and 1,206,125, respectively, had vested. During the six months ended June 30, 2021, there were 463,213 DSUs granted, 155,995 DSUs distributed, and 31,161 DSUs forfeited. Unvested DSUs at June 30, 2021 vest through 2025. Performance Stock Units (“PSUs”) At June 30, 2021 and December 31, 2020, the target number of PSUs that were unvested was 955,710 and 978,735, respectively. Vesting for all PSUs will generally occur at the end of three years from their grant date based on various Total Shareholder Return ("TSR") performance calculations, as discussed in our Annual Report on Form 10-K for the year ended December 31, 2020. With respect to PSUs granted in May 2018, the three-year performance period ended during the second quarter of 2021, resulting in the vesting of no shares of our common stock. During the second quarter of 2021, for PSUs granted in 2020, we adjusted the future amortization expense by $1 million to reflect our current estimate of the number of shares expected to vest in relation to the performance condition for the initial one-year vesting tranche. Employee Stock Purchase Plan ("ESPP") The ESPP allows a maximum of 850,000 shares of common stock to be purchased in aggregate for all employees. As of June 30, 2021 and December 31, 2020, 523,991 and 489,886 shares had been purchased, respectively, and there remained a negligible amount of uninvested employee contributions in the ESPP at June 30, 2021.

Mortgage Banking Activities, Ne

Mortgage Banking Activities, Net	6 Months Ended
	Jun. 30, 2021
Mortgage Banking [Abstract]
Mortgage Banking Activities, Net	Mortgage Banking Activities, Net The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income (loss) for the three and six months ended June 30, 2021 and 2020. Table 19.1 – Mortgage Banking Activities Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ 76,907 $ (1,393) $ 47,634 $ 6,562 Trading securities (2) (1,095) — (374) — Risk management derivatives (3) (55,740) — 33,224 (31,294) Other income (expense), net (4) 1,193 (6,612) 2,216 (6,354) Total residential mortgage banking activities, net 21,265 (8,005) 82,700 (31,086) Business Purpose Mortgage Banking Activities, Net: Changes in fair value of: Single-family rental loans, at fair value (1) 25,966 1,210 36,214 13,018 Risk management derivatives (3) (2,504) — 1,354 (21,538) Bridge loans, at fair value 2,225 (1,260) 3,269 (5,194) Other income, net (5) 7,467 2,073 13,489 9,916 Total business purpose mortgage banking activities, net 33,154 2,023 54,326 (3,798) Mortgage Banking Activities, Net $ 54,419 $ (5,982) $ 137,026 $ (34,884) (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 fair value changes on trading securities that are being used as hedges to manage the mark-to-market risks associated with our residential mortgage banking operations. (3) Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations. (4) Amounts in this line item include other fee income from loan acquisitions and provisions for repurchase expense, presented net. (5) Amounts in this line item include other fee income from loan originations.

Other Income

Other Income	6 Months Ended
	Jun. 30, 2021
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 (loss) for the three and six months ended June 30, 2021 and 2020. Table 20.1 – Other Income Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 MSR (loss) income, net $ (43) $ (1,424) $ 654 $ (3,233) Risk share income 861 1,181 1,743 1,946 FHLBC capital stock dividend 25 538 50 1,085 Bridge loan fees 911 626 1,604 1,804 Other 372 244 1,918 2,491 Other Income $ 2,126 $ 1,165 $ 5,969 $ 4,093

General and Administrative Expe

General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses	6 Months Ended
	Jun. 30, 2021
Other Income and Expenses [Abstract]
General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses	General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses Components of our general and administrative expenses, loan acquisition costs, and other expenses for the three and six months ended June 30, 2021 and 2020 are presented in the following table. Table 21.1 – Components of General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 General and Administrative Expenses Fixed compensation expense $ 11,269 $ 11,818 $ 23,074 $ 26,502 Annual variable compensation 12,508 3,278 31,177 3,289 Long-term incentive award expense (1) 5,682 3,262 9,851 5,257 Acquisition-related equity compensation expense (2) 1,212 1,212 2,424 2,424 Systems and consulting 3,272 2,395 6,249 5,607 Office costs 2,024 1,887 3,832 3,995 Accounting and legal 1,221 2,788 1,935 5,004 Corporate costs 873 626 1,564 1,297 Other 2,533 1,254 4,039 3,827 Total General and Administrative Expenses 40,594 28,520 84,145 57,202 Loan Acquisition Costs Commissions 1,661 360 2,924 2,148 Underwriting costs 1,836 856 3,521 2,518 Transfer and holding costs 251 356 862 892 Total Loan Acquisition Costs 3,748 1,572 7,307 5,558 Other Expenses Goodwill impairment expense — — — 88,675 Amortization of purchase-related intangible assets 3,873 3,873 7,746 8,182 Other 112 1,210 335 (359) Total Other Expenses 3,985 5,083 8,081 96,498 Total General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses $ 48,327 $ 35,175 $ 99,533 $ 159,258 (1) For the three months ended June 30, 2021, long-term incentive award expense includes $4 million of expense for awards settleable in shares of our common stock and $1 million of expense for awards settleable in cash. For the six months ended June 30, 2021, long-term incentive award expense includes $7 million of expense for awards settleable in shares of our common stock and $3 million of expense for awards settleable in cash. (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 is being recognized as compensation expense over the two-year vesting period on a straight-line basis in accordance with GAAP.

Taxes

Taxes	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Taxes	Taxes For the six months ended June 30, 2021 and 2020, we recognized a provision for income taxes of $18 million and a benefit from income taxes of $22 million, respectively. The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at June 30, 2021 and 2020. Table 22.1 – Reconciliation of Statutory Tax Rate to Effective Tax Rate June 30, 2021 June 30, 2020 Federal statutory rate 21.0 % 21.0 % State statutory rate, net of Federal tax effect 8.6 % 8.6 % Differences in taxable (loss) income from GAAP income (14.1) % (23.6) % Change in valuation allowance (3.3) % (3.2) % Dividends paid deduction (1) (3.3) % — % Effective Tax Rate 8.9 % 2.8 % (1) The dividends paid deduction in the effective tax rate reconciliation is generally representative of the amount of distributions to shareholders that reduce REIT taxable income. For the six months ended June 30, 2020, the dividends paid deduction is 0% due to our REIT incurring a taxable loss during the period; therefore, there was no REIT taxable income available to apply against the dividends paid. We assessed our tax positions for all open tax years (i.e., Federal, 2017 to 2021, and State, 2016 to 2021) at June 30, 2021 and December 31, 2020, and concluded that we had no uncertain tax positions that resulted in material unrecognized tax benefits.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Segment Information	Segment Information Redwood operates in three segments: Residential Lending, Business Purpose Lending, and Third-Party Investments. For a full description of our segments, see Part I, Item 1—Business in our Annual Report on Form 10-K for the year ended December 31, 2020. 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 three segments, as well as activity from certain consolidated Sequoia entities, are included in the Corporate/Other column as reconciling items to our consolidated financial statements. These unallocated corporate expenses primarily include interest expense from our convertible notes and trust preferred securities, indirect general and administrative expenses and other expense. The following tables present financial information by segment for the three and six months ended June 30, 2021 and 2020. Table 23.1 – Business Segment Financial Information Three Months Ended June 30, 2021 (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total Interest income $ 33,033 $ 70,515 $ 33,972 $ 1,175 $ 138,695 Interest expense (21,056) (54,442) (22,334) (10,233) (108,065) Net interest income 11,977 16,073 11,638 (9,058) 30,630 Non-interest income Mortgage banking activities, net 21,265 33,154 — — 54,419 Investment fair value changes, net 3,927 3,782 42,018 (247) 49,480 Other income, net 839 1,017 5 265 2,126 Realized gains, net 6,687 390 1,307 — 8,384 Total non-interest income (loss), net 32,718 38,343 43,330 18 114,409 General and administrative expenses (7,793) (13,688) (930) (18,183) (40,594) Loan acquisition costs (1,887) (1,861) — — (3,748) Other expenses — (3,873) (112) — (3,985) Provision for income taxes (4,171) (2,182) (334) — (6,687) Segment Contribution $ 30,844 $ 32,812 $ 53,592 $ (27,223) Net Income $ 90,025 Non-cash amortization (expense) income, net $ 1,339 $ (5,584) $ 185 $ (1,955) $ (6,015) Six Months Ended June 30, 2021 (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total Interest income $ 60,581 $ 134,920 $ 68,962 $ 2,537 $ 267,000 Interest expense (40,093) (104,517) (45,513) (20,494) (210,617) Net interest income 20,488 30,403 23,449 (17,957) 56,383 Non-interest income Mortgage banking activities, net 82,700 54,326 — — 137,026 Investment fair value changes, net 6,673 7,081 81,734 (921) 94,567 Other income, net 3,692 1,860 5 412 5,969 Realized gains, net 9,095 498 1,507 — 11,100 Total non-interest income, net 102,160 63,765 83,246 (509) 248,662 General and administrative expenses (21,550) (24,847) (2,061) (35,687) (84,145) Loan acquisition costs (3,303) (3,913) (87) (4) (7,307) Other expenses (6) (7,650) (442) 17 (8,081) Provision for income taxes (14,150) (3,503) (577) — (18,230) Segment Contribution $ 83,639 $ 54,255 $ 103,528 $ (54,140) Net Income $ 187,282 Non-cash amortization (expense) income, net $ 3,005 $ (11,441) $ 41 $ (3,850) $ (12,245) Three Months Ended June 30, 2020 (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total Interest income $ 36,653 $ 53,742 $ 36,811 $ 2,740 $ 129,946 Interest expense (28,762) (36,631) (24,927) (12,346) (102,666) Net interest income 7,891 17,111 11,884 (9,606) 27,280 Non-interest income Mortgage banking activities, net (8,005) 2,023 — — (5,982) Investment fair value changes, net 35,085 40,401 76,972 (230) 152,228 Other income, net 230 686 (509) 758 1,165 Realized gains, net 205 — 578 25,182 25,965 Total non-interest income, net 27,515 43,110 77,041 25,710 173,376 General and administrative expenses (3,700) (9,016) (1,986) (13,818) (28,520) Loan acquisition costs (175) (1,277) (120) — (1,572) Other expenses — (3,884) (1,065) (134) (5,083) Benefit from (provision for) income taxes 3,323 2,439 (5,799) — (37) Segment Contribution $ 34,854 $ 48,483 $ 79,955 $ 2,152 Net Income $ 165,444 Non-cash amortization income (expense), net $ (1,265) $ (6,391) $ 312 $ (1,619) $ (8,963) Six Months Ended June 30, 2020 (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total Interest income $ 97,284 $ 106,802 $ 118,007 $ 5,934 $ 328,027 Interest expense (66,324) (68,984) (87,428) (26,601) (249,337) Net interest income 30,960 37,818 30,579 (20,667) 78,690 Non-interest income Mortgage banking activities, net (31,086) (3,798) — — (34,884) Investment fair value changes, net (161,550) (101,729) (454,586) (739) (718,604) Other income, net (267) 2,870 732 758 4,093 Realized gains, net 2,001 — 2,634 25,182 29,817 Total non-interest income, net (190,902) (102,657) (451,220) 25,201 (719,578) General and administrative expenses (8,299) (20,656) (3,521) (24,726) (57,202) Loan acquisition costs (1,208) (3,970) (373) (7) (5,558) Other expenses — (96,869) 817 (446) (96,498) Benefit from income taxes 8,653 9,021 4,518 — 22,192 Segment Contribution $ (160,796) $ (177,313) $ (419,200) $ (20,645) Net Loss $ (777,954) Non-cash amortization income (expense), net $ (1,053) $ (11,316) $ 1,053 $ (1,728) $ (13,044) Other significant non-cash expense: goodwill impairment $ — $ (88,675) $ — $ — $ (88,675) The following table presents the components of Corporate/Other for the three and six months ended June 30, 2021 and 2020. Table 23.2 – Components of Corporate/Other Three Months Ended June 30, 2021 2020 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 1,169 $ 6 $ 1,175 $ 2,685 $ 55 $ 2,740 Interest expense (755) (9,478) (10,233) (1,518) (10,828) (12,346) Net interest income 414 (9,472) (9,058) 1,167 (10,773) (9,606) Non-interest income Investment fair value changes, net (216) (31) (247) (230) — (230) Other income — 265 265 — 758 758 Realized gains, net — — — — 25,182 25,182 Total non-interest income, net (216) 234 18 (230) 25,940 25,710 General and administrative expenses — (18,183) (18,183) — (13,818) (13,818) Other expenses — — — — (134) (134) Total $ 198 $ (27,421) $ (27,223) $ 937 $ 1,215 $ 2,152 Six Months Ended June 30, 2021 2020 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 2,517 $ 20 $ 2,537 $ 5,879 $ 55 $ 5,934 Interest expense (1,630) (18,864) (20,494) (4,040) (22,561) (26,601) Net interest income 887 (18,844) (17,957) 1,839 (22,506) (20,667) Non-interest income Investment fair value changes, net (915) (6) (921) (621) (118) (739) Other income — 412 412 — 758 758 Realized gains, net — — — — 25,182 25,182 Total non-interest income, net (915) 406 (509) (621) 25,822 25,201 General and administrative expenses — (35,687) (35,687) — (24,726) (24,726) Loan acquisition costs — (4) (4) — (7) (7) Other expenses — 17 17 — (446) (446) Total $ (28) $ (54,112) $ (54,140) $ 1,218 $ (21,863) $ (20,645) (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 June 30, 2021 and December 31, 2020. Table 23.3 – Supplemental Segment Information (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total June 30, 2021 Residential loans $ 3,383,101 $ — $ 2,098,624 $ 260,875 $ 5,742,600 Business purpose loans — 4,408,889 — — 4,408,889 Multifamily loans — — 485,157 — 485,157 Real estate securities 163,609 — 191,277 — 354,886 Other investments 8,721 13,168 267,851 18,992 308,732 Intangible assets — 49,119 — — 49,119 Total assets 3,615,860 4,576,139 3,063,094 741,298 11,996,391 December 31, 2020 Residential loans $ 1,741,963 $ — $ 2,221,153 $ 285,935 $ 4,249,051 Business purpose loans — 4,136,353 — — 4,136,353 Multifamily loans — — 492,221 — 492,221 Real estate securities 160,780 — 183,345 — 344,125 Other investments 8,815 21,627 317,282 451 348,175 Intangible assets — 56,865 — — 56,865 Total assets 1,989,802 4,323,040 3,232,415 809,809 10,355,066

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of PresentationThe consolidated financial statements presented herein are at June 30, 2021 and December 31, 2020, and for the three and six months ended June 30, 2021 and 2020. These interim unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in our annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") — as prescribed by the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) — have been condensed or omitted in these interim financial statements according to these SEC rules and regulations. Management believes that the disclosures included in these interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the company's Annual Report on Form 10-K for the year ended December 31, 2020. In the opinion of management, all normal and recurring adjustments to present fairly the financial condition of the Company at June 30, 2021 and results of operations for all periods presented have been made. The results of operations for the three and six months ended June 30, 2021 should not be construed as indicative of the results to be expected for the full year.
Principles of Consolidation	Principles of Consolidation In accordance with GAAP, we determine whether we must consolidate transferred financial assets and variable interest entities (“VIEs”) for financial reporting purposes. We currently consolidate the assets and liabilities of certain Sequoia securitization entities issued prior to 2012 ("Legacy Sequoia"), certain entities formed in connection with the securitization of Redwood Choice expanded-prime loans and, beginning in the second quarter of 2021, Redwood Select loans ("Sequoia"), and entities formed in connection with the securitization of CoreVest single-family rental loans ("CAFL"). We also consolidate the assets and liabilities of certain Freddie Mac K-Series and Freddie Mac Seasoned Loans Structured Transaction ("SLST") securitizations in which we have invested. 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	Use of Estimates The preparation of financial statements requires us to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amounts and timing of credit losses, prepayment rates, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the consolidated financial statements and the reported amounts of certain revenues and expenses during the reported periods. It is likely that changes in these estimates (e.g., valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term. Our estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Newly Adopted Accounting Standards Updates ("ASUs") In October 2020, the FASB issued ASU 2020-10, "Codification Improvements." This new guidance updates various codification topics by clarifying or improving disclosure requirements. This new guidance is effective for fiscal years ending after December 15, 2020. We adopted this guidance, as required, in the first quarter of 2021, which did not have a material impact on our consolidated financial statements. In October 2020, the FASB issued ASU 2020-09, "Debt (Topic 470): Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762." This new guidance aligns certain SEC paragraphs in the codification with new SEC rules issued in March 2020 related to changes to the disclosure requirements for registered debt securities. This new guidance became effective January 4, 2021. We adopted this guidance, as required, in the first quarter of 2021, which did not have a material impact on our consolidated financial statements. In October 2020, the FASB issued ASU 2020-08, "Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs." This new guidance clarifies that an entity should reevaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. This new guidance is effective for fiscal years ending after December 15, 2020. We adopted this guidance, as required, in the first quarter of 2021, which did not have a material impact on our consolidated financial statements. 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. We adopted this guidance, as required, in the first quarter of 2021, which did not have a material impact on our 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. We adopted this guidance, as required, in the first quarter of 2021, which did not have a material impact on our consolidated financial statements. Other Recent Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40)." This new guidance simplifies the accounting for convertible debt by reducing the number of accounting models to separately present certain conversion features in equity. This new guidance is effective for fiscal years beginning after December 31, 2021. Early adoption is permitted. We plan to adopt this new guidance by the required date and do not anticipate that this update will have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope." This new guidance clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. This new guidance is effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact the adoption of this standard would have on our consolidated financial statements. Through June 30, 2021, we have not elected to apply the optional expedients and exceptions to any of our existing contracts, hedging relationships, or other transactions.
Balance Sheet Netting	Balance Sheet Netting Certain of our derivatives and short-term debt are subject to master netting arrangements or similar agreements. Under GAAP, in certain circumstances we may elect to present certain financial assets, liabilities and related collateral subject to master netting arrangements in a net position on our consolidated balance sheets. However, we do not report any of these financial assets or liabilities on a net basis, and instead present them on a gross basis on our consolidated balance sheets.For each category of financial instrument set forth in the table above, the assets and liabilities resulting from individual transactions within that category between us and a counterparty are subject to a master netting arrangement or similar agreement with that counterparty that provides for individual transactions to be aggregated and treated as a single transaction. For certain categories of these instruments, some of our transactions are cleared and settled through one or more clearinghouses that are substituted as our counterparty. References herein to master netting arrangements or similar agreements include the arrangements and agreements governing the clearing and settlement of these transactions through the clearinghouses. In the event of the termination and close-out of any of those transactions, the corresponding master netting agreement or similar agreement provides for settlement on a net basis. Any such settlement would include the proceeds of the liquidation of any corresponding collateral, subject to certain limitations on termination, settlement, and liquidation of collateral that may apply in the event of the bankruptcy or insolvency of a party. Such limitations should not inhibit the eventual practical realization of the principal benefits of those transactions or the corresponding master netting arrangement or similar agreement and any corresponding collateral.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Finite-Lived Intangible Assets	The table below presents the amortization period and carrying value of our intangible assets, net of accumulated amortization at June 30, 2021. Table 2.1 – Intangible Assets – Activity Intangible Assets at Acquisition Accumulated Amortization at June 30, 2021 Carrying Value at June 30, 2021 Weighted Average Amortization Period (in years) (Dollars in Thousands) Borrower network $ 45,300 $ (11,055) $ 34,245 7 Broker network 18,100 (8,447) 9,653 5 Non-compete agreements 9,500 (6,014) 3,486 3 Tradenames 4,000 (2,528) 1,472 3 Developed technology 1,800 (1,537) 263 2 Loan administration fees on existing loan assets 2,600 (2,600) — 1 Total $ 81,300 $ (32,181) $ 49,119 6
Finite-lived Intangible Assets Amortization Expense	. Estimated future amortization expense is summarized in the table below. Table 2.2 – Intangible Asset Amortization Expense by Year (In Thousands) June 30, 2021 2021 (6 months) $ 7,558 2022 12,800 2023 10,091 2024 7,073 2025 and thereafter 11,597 Total Future Intangible Asset Amortization $ 49,119

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2021
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 June 30, 2021 and December 31, 2020. 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 June 30, 2021 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 17,746 $ — $ 17,746 $ (957) $ (11,238) $ 5,551 TBAs 2,064 — 2,064 (478) (1,393) 193 Futures 304 — 304 (194) — 110 Total Assets $ 20,114 $ — $ 20,114 $ (1,629) $ (12,631) $ 5,854 Liabilities (2) Interest rate agreements $ (957) $ — $ (957) $ 957 $ — $ — TBAs (1,367) — (1,367) 478 889 — Futures (194) — (194) 194 — — Loan warehouse debt (1,049,144) — (1,049,144) 1,049,144 — — Security repurchase agreements (80,938) — (80,938) 80,938 — — Total Liabilities $ (1,132,600) $ — $ (1,132,600) $ 1,131,711 $ 889 $ — 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, 2020 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 19,951 $ — $ 19,951 $ — $ (7,769) $ 12,182 TBAs 18,260 — 18,260 (13,423) (4,658) 179 Total Assets $ 38,211 $ — $ 38,211 $ (13,423) $ (12,427) $ 12,361 Liabilities (2) TBAs $ (15,495) $ — $ (15,495) $ 13,423 $ 1,061 $ (1,011) Loan warehouse debt (137,269) — (137,269) 137,269 — — Security repurchase agreements (77,775) — (77,775) 77,775 — — Total Liabilities $ (230,539) $ — $ (230,539) $ 228,467 $ 1,061 $ (1,011) (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.

Principles of Consolidation (Ta

Principles of Consolidation (Tables)	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Consolidated VIEs	The following table presents a summary of the assets and liabilities of these VIEs. Table 4.1 – Assets and Liabilities of Consolidated VIEs Accounted for as Collateralized Financing Entities June 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Total (Dollars in Thousands) Residential loans, held-for-investment $ 260,875 $ 2,222,553 $ — $ 2,098,624 $ — $ — $ 4,582,052 Business purpose loans, held-for-investment — — 3,263,878 — — — 3,263,878 Multifamily loans, held-for-investment — — — — 485,157 — 485,157 Other investments — — — — — 202,369 202,369 Cash and cash equivalents — — — — — 12,459 12,459 Restricted cash 148 — — — — 19,028 19,176 Accrued interest receivable 258 7,559 13,102 6,325 1,326 1,606 30,176 Other assets 659 — 12,596 1,636 — 6,277 21,168 Total Assets $ 261,940 $ 2,230,112 $ 3,289,576 $ 2,106,585 $ 486,483 $ 241,739 $ 8,616,435 Short-term debt $ — $ — $ — $ — $ — $ 163,629 $ 163,629 Accrued interest payable 124 5,521 10,183 4,490 1,200 94 21,612 Accrued expenses and other liabilities — — — — — 16,360 16,360 Asset-backed securities issued 258,211 1,990,548 3,007,596 1,650,087 454,324 — 7,360,766 Total Liabilities $ 258,335 $ 1,996,069 $ 3,017,779 $ 1,654,577 $ 455,524 $ 180,083 $ 7,562,367 Number of VIEs 20 12 14 3 1 3 53 December 31, 2020 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Total (Dollars in Thousands) Residential loans, held-for-investment $ 285,935 $ 1,565,322 $ — $ 2,221,153 $ — $ — $ 4,072,410 Business purpose loans, held-for-investment — — 3,249,194 — — — 3,249,194 Multifamily loans, held-for-investment — — — — 492,221 — 492,221 Other investments — — — — — 251,773 251,773 Cash and cash equivalents — — — — — 11,579 11,579 Restricted cash 148 — — — — 23,220 23,368 Accrued interest receivable 305 6,802 13,055 6,754 1,337 2,334 30,587 Other assets 638 — 2,930 646 — 5,723 9,937 Total Assets $ 287,026 $ 1,572,124 $ 3,265,179 $ 2,228,553 $ 493,558 $ 294,629 $ 8,141,069 Short-term debt $ — $ — $ — $ — $ — $ 208,375 $ 208,375 Accrued interest payable 141 4,697 10,278 4,846 1,177 135 21,274 Accrued expenses and other liabilities — 50 — — — 18,353 18,403 Asset-backed securities issued 282,326 1,347,357 3,013,093 1,793,620 463,966 — 6,900,362 Total Liabilities $ 282,467 $ 1,352,104 $ 3,023,371 $ 1,798,466 $ 465,143 $ 226,863 $ 7,148,414 Number of VIEs 20 10 14 2 1 3 50 The following table presents income (loss) from these VIEs for the three and six months ended June 30, 2021 and 2020. Table 4.2 – Income (Loss) from Consolidated VIEs Accounted for as Collateralized Financing Entities Three Months Ended June 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Total (Dollars in Thousands) Interest income $ 1,169 $ 14,492 $ 54,849 $ 19,506 $ 4,860 $ 4,041 $ 98,917 Interest expense (755) (11,374) (43,201) (13,927) (4,478) (1,110) (74,845) Net interest income 414 3,118 11,648 5,579 382 2,931 24,072 Non-interest income Investment fair value changes, net (216) 4,906 3,697 36,316 1,855 (2,320) 44,238 Total non-interest income, net (216) 4,906 3,697 36,316 1,855 (2,320) 44,238 General and administrative expenses — — — — — (52) (52) Other expenses — — — — — (112) (112) Income from Consolidated VIEs $ 198 $ 8,024 $ 15,345 $ 41,895 $ 2,237 $ 447 $ 68,146 Six Months Ended June 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Total (Dollars in Thousands) Interest income $ 2,517 $ 29,975 $ 103,722 $ 39,665 $ 9,646 $ 8,263 $ 193,788 Interest expense (1,630) (23,480) (81,054) (28,395) (8,834) (2,396) (145,789) Net interest income 887 6,495 22,668 11,270 812 5,867 47,999 Non-interest income Investment fair value changes, net (915) 9,804 3,411 40,433 10,776 (3,566) 59,943 Total non-interest income, net (915) 9,804 3,411 40,433 10,776 (3,566) 59,943 General and administrative expenses — — — — — (90) (90) Other expenses — — — — — (442) (442) Income (Loss) from Consolidated VIEs $ (28) $ 16,299 $ 26,079 $ 51,703 $ 11,588 $ 1,769 $ 107,410 Three Months Ended June 30, 2020 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Total (Dollars in Thousands) Interest income $ 2,685 $ 22,564 $ 32,978 $ 21,187 $ 4,870 $ 4,540 $ 88,824 Interest expense (1,518) (19,117) (24,446) (15,846) (4,380) (1,797) (67,104) Net interest income 1,167 3,447 8,532 5,341 490 2,743 21,720 Non-interest income Investment fair value changes, net (230) 39,752 16,313 26,866 1,599 3,291 87,591 Total non-interest income, net (230) 39,752 16,313 26,866 1,599 3,291 87,591 General and administrative expenses — — — — — (712) (712) Other expenses — — — — — (1,065) (1,065) Income from Consolidated VIEs $ 937 $ 43,199 $ 24,845 $ 32,207 $ 2,089 $ 4,257 $ 107,534 Six Months Ended June 30, 2020 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Total (Dollars in Thousands) Interest income $ 5,879 $ 47,647 $ 62,988 $ 43,173 $ 45,042 $ 8,623 $ 213,352 Interest expense (4,040) (40,627) (46,385) (32,022) (42,728) (3,374) (169,176) Net interest income 1,839 7,020 16,603 11,151 2,314 5,249 44,176 Non-interest income Investment fair value changes, net (621) (29,916) (51,533) (115,295) (84,910) (8,593) (290,868) Total non-interest income, net (621) (29,916) (51,533) (115,295) (84,910) (8,593) (290,868) General and administrative expenses — — — — — (743) (743) Other expenses — — — — — 817 817 Income (Loss) from Consolidated VIEs $ 1,218 $ (22,896) $ (34,930) $ (104,144) $ (82,596) $ (3,270) $ (246,618)
Securitization Activity Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents information related to securitization transactions that occurred during the three and six months ended June 30, 2021 and 2020. Table 4.3 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Principal balance of loans transferred $ 355,924 $ — $ 1,231,803 $ 1,573,703 Trading securities retained, at fair value 1,225 — 7,774 43,362 AFS securities retained, at fair value 522 — 1,600 3,198
Cash Flows Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table summarizes the cash flows during the three and six months ended June 30, 2021 and 2020 between us and the unconsolidated VIEs sponsored by us and accounted for as sales since 2012. Table 4.4 – Cash Flows Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Proceeds from new transfers $ 361,673 $ — $ 1,266,063 $ 1,610,761 MSR fees received 1,336 2,475 2,943 5,165 Funding of compensating interest, net (70) (205) (170) (297) Cash flows received on retained securities 16,764 6,788 25,393 13,369
Assumptions Related to Assets Retained from Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents the key weighted-average assumptions used to value securities retained at the date of securitization for securitizations completed during the three and six months ended June 30, 2021 and 2020. Table 4.5 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 At Date of Securitization Senior IO Securities Subordinate Securities Senior IO Securities Subordinate Securities Prepayment rates 8 % 8 % N/A N/A Discount rates 15 % 7 % N/A N/A Credit loss assumptions 0.25 % 0.25 % N/A N/A Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 At Date of Securitization Senior IO Securities Subordinate Securities Senior IO Securities Subordinate Securities Prepayment rates 11 % 11 % 41 % 13 % Discount rates 15 % 6 % 16 % 6 % Credit loss assumptions 0.23 % 0.23 % 0.21 % 0.22 %
Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents additional information at June 30, 2021 and December 31, 2020, related to unconsolidated VIEs sponsored by Redwood and accounted for as sales since 2012. Table 4.6 – Unconsolidated VIEs Sponsored by Redwood (In Thousands) June 30, 2021 December 31, 2020 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 20,527 $ 20,982 Subordinate securities, classified as AFS 140,321 136,475 Mortgage servicing rights 6,496 8,413 Maximum loss exposure (1) $ 167,344 $ 165,870 Assets transferred: Principal balance of loans outstanding $ 6,326,188 $ 7,728,432 Principal balance of loans 30+ days delinquent 58,362 138,029 (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 June 30, 2021 and December 31, 2020. Table 4.7 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood June 30, 2021 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at June 30, 2021 $ 6,496 $ 20,527 $ 140,321 Expected life (in years) (2) 2 4 8 Prepayment speed assumption (annual CPR) (2) 38 % 25 % 33 % Decrease in fair value from: 10% adverse change $ 613 $ 1,374 $ 238 25% adverse change 1,422 3,120 440 Discount rate assumption (2) 12 % 18 % 3.5 % Decrease in fair value from: 100 basis point increase $ 139 $ 462 $ 10,058 200 basis point increase 271 900 19,174 Credit loss assumption (2) N/A 0.39 % 0.39 % Decrease in fair value from: 10% higher losses N/A $ — $ 2,671 25% higher losses N/A — 6,384 December 31, 2020 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2020 $ 8,413 $ 17,333 $ 140,124 Expected life (in years) (2) 2 3 8 Prepayment speed assumption (annual CPR) (2) 37 % 31 % 33 % Decrease in fair value from: 10% adverse change $ 906 $ 1,557 $ 452 25% adverse change 2,058 3,754 2,298 Discount rate assumption (2) 12 % 21 % 5 % Decrease in fair value from: 100 basis point increase $ 196 $ 337 $ 9,769 200 basis point increase 380 659 18,650 Credit loss assumption (2) N/A 0.41 % 0.41 % Decrease in fair value from: 10% higher losses N/A $ — $ 2,409 25% higher losses N/A — 5,915 (1) Senior securities included $21 million and $17 million of interest-only securities at June 30, 2021 and December 31, 2020, respectively. (2) Expected life, prepayment speed assumption, discount rate assumption, and credit loss assumption presented in the tables above represent weighted averages.
Schedule of Third-Party Sponsored VIE Summary	The following table presents a summary of our interests in third-party VIEs at June 30, 2021 and December 31, 2020, grouped by asset type. Table 4.8 – Third-Party Sponsored VIE Summary (In Thousands) June 30, 2021 December 31, 2020 Mortgage-Backed Securities Senior $ 4,740 $ 11,131 Mezzanine — 2,014 Subordinate 189,298 173,523 Total Mortgage-Backed Securities 194,038 186,668 Excess MSR 12,170 14,133 Total Investments in Third-Party Sponsored VIEs $ 206,208 $ 200,801

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Carrying Values and 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 June 30, 2021 and December 31, 2020. Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair (In Thousands) Assets Residential loans, held-for-sale at fair value $ 1,160,513 $ 1,160,513 $ 176,604 $ 176,604 Residential loans, held-for-investment 4,582,052 4,582,052 4,072,410 4,072,410 Business purpose loans, held-for-sale 418,442 418,442 245,394 245,394 Business purpose loans, held-for-investment 3,990,447 3,990,447 3,890,959 3,890,959 Multifamily loans 485,157 485,157 492,221 492,221 Real estate securities 354,886 354,886 344,125 344,125 Servicer advance investments (1) 184,551 184,551 231,489 231,489 MSRs (1) 8,721 8,721 8,815 8,815 Excess MSRs (1) 29,988 29,988 34,418 34,418 Shared home appreciation options (1) 44,319 44,319 42,440 42,440 Other financial instruments (2) 28,556 28,556 10,203 10,203 Cash and cash equivalents 421,223 421,223 461,260 461,260 Restricted cash 55,048 55,048 83,190 83,190 Derivative assets 34,305 34,305 53,238 53,238 REO (3) 15,489 17,718 8,413 9,229 Margin receivable (3) 10,269 10,269 4,758 4,758 FHLBC stock (3) 10 10 5,000 5,000 Pledged collateral (3) — — 1,177 1,177 Liabilities Short-term debt $ 1,484,999 $ 1,484,999 $ 522,609 $ 522,609 Margin payable (4) 19,503 19,503 — — Guarantee obligation (4) 8,446 5,932 10,039 7,843 Derivative liabilities 3,240 3,240 16,072 16,072 ABS issued, net Fair value 7,360,766 7,360,766 6,900,362 6,900,362 Amortized cost 176,231 180,080 200,299 204,892 Other long-term debt, net (5) 833,272 834,214 774,726 783,570 Convertible notes, net (5) 512,339 531,473 511,085 499,865 Trust preferred securities and subordinated notes, net (5) 138,697 87,188 138,674 80,910 (1) These investments are included in Other investments on our consolidated balance sheets. (2) Includes equity, debt, and loan investments included in Other investments on our consolidated balance sheets. (3) These assets are included in Other assets on our consolidated balance sheets. (4) These liabilities are included in Accrued expenses and other liabilities on our consolidated balance sheets. (5) These liabilities are included in Long-term debt, net 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 June 30, 2021 and December 31, 2020, 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 June 30, 2021 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 5,742,565 $ — $ — $ 5,742,565 Business purpose loans 4,408,889 — — 4,408,889 Multifamily loans 485,157 — — 485,157 Real estate securities 354,886 — — 354,886 Servicer advance investments 184,551 — — 184,551 MSRs 8,721 — — 8,721 Excess MSRs 29,988 — — 29,988 Shared home appreciation options 44,319 — — 44,319 Derivative assets 34,305 2,368 17,746 14,191 Liabilities Derivative liabilities $ 3,240 $ 1,561 $ 957 $ 722 ABS issued 7,360,766 — — 7,360,766 December 31, 2020 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 4,249,014 $ — $ — $ 4,249,014 Business purpose loans 4,136,353 — — 4,136,353 Multifamily loans 492,221 — — 492,221 Real estate securities 344,125 — — 344,125 Servicer advance investments 231,489 — — 231,489 MSRs 8,815 — — 8,815 Excess MSRs 34,418 — — 34,418 Shared home appreciation options 42,440 — — 42,440 Derivative assets 53,238 18,260 19,951 15,027 Pledged collateral 1,177 1,177 — — FHLBC stock 5,000 — 5,000 — Liabilities Derivative liabilities $ 16,072 $ 15,495 $ — $ 577 ABS issued 6,900,362 — — 6,900,362
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 six months ended June 30, 2021. Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets Residential Loans Business Purpose Multifamily Loans Trading Securities AFS Servicer Advance Investments MSRs Excess MSRs Shared Home Appreciation Options (In Thousands) Beginning balance - $ 4,249,014 $ 4,136,353 $ 492,221 $ 125,667 $ 218,458 $ 231,489 $ 8,815 $ 34,418 $ 42,440 Acquisitions 6,684,292 — — 26,367 1,600 — 2,283 — — Originations — 913,704 — — — — — — — Sales (4,531,811) (9,231) — (31,949) (4,785) — — — — Principal paydowns (727,627) (599,889) (3,806) (807) (28,979) (45,838) — — (5,516) Gains (losses) in net income (loss), net 70,184 (17,835) (3,258) 23,147 14,172 (1,100) (2,251) (4,430) 7,395 Unrealized losses in OCI, net — — — — 11,995 — — — — Other settlements, net (1) (1,487) (14,213) — — — — (126) — — Ending balance - $ 5,742,565 $ 4,408,889 $ 485,157 $ 142,425 $ 212,461 $ 184,551 $ 8,721 $ 29,988 $ 44,319 Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (continued) Liabilities Derivatives (2) ABS (In Thousands) Beginning balance - December 31, 2020 $ 14,450 $ 6,900,362 Acquisitions — 1,629,218 Principal paydowns — (1,055,541) Gains (losses) in net income (loss), net (197) (113,273) Other settlements, net (1) (784) — Ending balance - June 30, 2021 $ 13,469 $ 7,360,766 (1) Other settlements, net for residential and business purpose 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. (2) For the purpose of this presentation, derivative assets and liabilities, which consist of loan purchase 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 (loss) that were attributable to Level 3 assets and liabilities recorded at fair value on a recurring basis and held at June 30, 2021 and 2020. Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the three and six months ended June 30, 2021 and 2020 are not included in this presentation. Table 5.4 – Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held at June 30, 2021 and 2020 Included in Net Income Included in Net Income Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Assets Residential loans at Redwood $ 14,130 $ (359) $ 10,481 $ (746) Business purpose loans 28,404 31,187 40,003 (21,026) Net investments in consolidated Sequoia entities (1) 4,693 39,558 8,893 (30,502) Net investments in consolidated Freddie Mac SLST entities (1) 36,137 26,867 40,225 (115,295) Net investments in consolidated Freddie Mac K-Series entity (1) 1,855 1,599 10,776 (13,180) Net investments in consolidated CAFL entities (1) 2,908 17,125 2,556 (50,721) Trading securities 1,772 30,647 2,262 (79,633) Servicer advance investments (940) (136) (1,100) (6,198) MSRs (330) (1,591) 273 (16,507) Excess MSRs (2,477) 2,971 (4,430) (6,523) Shared home appreciation options 2,080 884 7,395 (6,670) Loan purchase and interest rate lock commitments 14,550 357 14,171 357 Liabilities Loan purchase commitments $ (696) $ 2,137 $ (724) $ (1,634) (1) Represents the portion of net gains or losses included in our consolidated statements of income (loss) related to loans and the associated ABS issued at our consolidated securitization entities held at June 30, 2021 and 2020, which netted together represent the change in value of our investments at the consolidated VIEs, excluding REO.
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 June 30, 2021. 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 June 30, 2021. Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis at June 30, 2021 Gain (Loss) for June 30, 2021 Carrying Fair Value Measurements Using Three Months Ended Six Months Ended (In Thousands) Level 1 Level 2 Level 3 June 30, 2021 June 30, 2021 Assets REO $ 1,233 $ — $ — $ 1,233 $ (3) $ (7)
Market Valuation Gains and Losses, Net	The following table presents the net market valuation gains and losses recorded in each line item of our consolidated statements of income for the three and six months ended June 30, 2021 and 2020. Table 5.6 – Market Valuation Gains and Losses, Net Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ 24,988 $ (2,014) $ 48,100 $ (15,494) Residential loan purchase and forward sale commitments 51,919 621 (466) 22,056 Single-family rental loans held-for-sale, at fair value 25,222 1,210 35,470 12,677 Single-family rental loan purchase and interest rate lock commitments 744 — 744 341 Bridge loans 2,225 (1,260) 3,269 (5,194) Trading securities (1) (1,095) — (374) — Risk management derivatives, net (58,244) — 34,578 (52,832) Total mortgage banking activities, net (2) $ 45,759 $ (1,443) $ 121,321 $ (38,446) Investment Fair Value Changes, Net Residential loans at Redwood $ 1,290 $ 104 $ 1,607 $ (93,532) Single-family rental loans held-for-investment — 2,222 — (20,806) Bridge loans held-for-investment (62) 21,774 3,242 (16,828) Trading securities 2,893 42,246 23,521 (221,079) Servicer advance investments (940) (136) (1,100) (6,198) Excess MSRs (2,477) 2,971 (4,430) (6,523) Net investments in Legacy Sequoia entities (3) (216) (230) (915) (621) Net investments in Sequoia entities (3) 4,906 39,753 9,804 (29,916) Net investments in Freddie Mac SLST entities (3) 36,316 26,867 40,433 (115,295) Net investment in Freddie Mac K-Series entity (3) 1,855 1,599 10,776 (84,910) Net investments in CAFL entities (3) 3,697 17,125 3,411 (50,721) Shared home appreciation options 2,080 884 7,395 (6,670) Other investments 125 (3,005) 435 (4,892) Risk management derivatives, net — — — (59,142) Credit recoveries (losses) on AFS securities 13 54 388 (1,471) Total investment fair value changes, net $ 49,480 $ 152,228 $ 94,567 $ (718,604) Other Income MSRs $ (1,381) $ (3,955) $ (2,247) $ (22,563) Risk management derivatives, net — — — 13,966 Total other income (4) $ (1,381) $ (3,955) $ (2,247) $ (8,597) Total Market Valuation Gains (Losses), Net $ 93,858 $ 146,830 $ 213,641 $ (765,647) (1) Represents fair value changes on trading securities that are being used along with risk management derivatives to manage the mark-to-market risks associated with our residential mortgage banking operations. (2) Mortgage banking activities, net presented above does not include fee income from loan originations or acquisitions, provisions for repurchases expense, and other expenses that are components of Mortgage banking activities, net presented on our consolidated statements of income (loss), as these amounts do not represent market valuation changes. (3) 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.
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 June 30, 2021 Fair Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average (1) Assets Residential loans, at fair value: Jumbo fixed-rate loans $ 232,343 Prepayment rate (annual CPR) 20 - 20 % 20 % Whole loan spread to TBA price $ 2.00 - $ 2.00 $ 2.00 Whole loan spread to swap rate 215 - 215 bps 215 bps Jumbo loans committed to sell 928,170 Whole loan committed sales price $ 100.88 - $ 103.03 $ 102.38 Loans held by Legacy Sequoia (2) 260,875 Liability price N/A N/A Loans held by Sequoia (2) 2,222,553 Liability price N/A N/A Loans held by Freddie Mac SLST (2) 2,098,624 Liability price N/A N/A Business purpose loans: Single-family rental loans 418,442 Senior credit spread 70 - 70 bps 70 bps Subordinate credit spread 105 - 1,531 bps 391 bps Senior credit support 34 - 34 % 34 % IO discount rate 9 - 9 % 9 % Prepayment rate (annual CPR) 3 - 3 % 3 % Non-securitizable loan dollar price $ 82 - $ 102 $ 99 Single-family rental loans held by CAFL 3,263,878 Liability price N/A N/A Bridge loans 726,569 Discount rate 6 - 15 % 8 % Multifamily loans held by Freddie Mac K-Series (2) 485,157 Liability price N/A N/A Trading and AFS securities 354,886 Discount rate 2 - 31 % 7 % Prepayment rate (annual CPR) 8 - 62 % 28 % Default rate — - 25 % 4 % Loss severity — - 50 % 22 % CRT dollar price $ 95 - $ 113 $ 102 Servicer advance investments 184,551 Discount rate 3 - 3 % 3 % Prepayment rate (annual CPR) 20 - 30 % 21 % Expected remaining life (3) 4 - 4 years 4 years Mortgage servicing income — - 15 bps 9 bps MSRs 8,721 Discount rate 12 - 12 % 12 % Prepayment rate (annual CPR) 7 - 84 % 36 % Per loan annual cost to service $ 96 - $ 96 $ 96 Excess MSRs 29,988 Discount rate 13 - 16 % 15 % Prepayment rate (annual CPR) 21 - 30 % 24 % Excess mortgage servicing income 8 - 17 bps 11 bps Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments (continued) June 30, 2021 Fair Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average (1) Assets (continued) Shared home appreciation options $ 44,319 Discount rate 13 - 13 % 13 % Prepayment rate (annual CPR) 16 - 24 % 17 % Home price appreciation 3 - 4 % 3 % REO 1,233 Loss severity 4 - 40 % 23 % Residential loan purchase commitments, net 12,725 Committed sales price $ 102.00 - $ 103.03 $ 102.64 Pull-through rate 21 - 100 % 72 % Whole loan spread to TBA price $ 2.00 - $ 2.00 $ 2.00 Whole loan spread to swap rate 191 - 215 bps 201 bps Prepayment rate (annual CPR) 20 - 20 % 20 % Single-family rental interest rate lock commitments 744 Senior credit spread 70 - 70 bps 70 bps Subordinate credit spread 105 - 1,531 bps 391 bps Senior credit support 34 - 34 % 34 % IO discount rate 10 - 11 % 10 % Prepayment rate (annual CPR) 3 - 3 % 3 % Pull-through rate 100 - 100 % 100 % Liabilities ABS issued (2) : At consolidated Sequoia entities 2,248,759 Discount rate 1 - 18 % 3 % Prepayment rate (annual CPR) 7 - 51 % 33 % Default rate — - 39 % 2 % Loss severity 25 - 50 % 32 % At consolidated CAFL entities (4) 3,007,596 Discount rate 1 - 13 % 3 % Prepayment rate (annual CPR) 3 - 3 % 3 % Default rate 3 - 18 % 9 % Loss severity 30 - 30 % 30 % At consolidated Freddie Mac SLST entities 1,650,087 Discount rate 2 - 7 % 3 % Prepayment rate (annual CPR) 6 - 8 % 6 % Default rate 9 - 10 % 9 % Loss severity 35 - 35 % 35 % At consolidated Freddie Mac K-Series entities (4) 454,324 Discount rate 1 - 9 % 2 % (1) The weighted average input values for all loan types are based on the unpaid principal balance. The weighted average input values for all other assets and liabilities are based on relative fair value. (2) 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 June 30, 2021, the fair value of securities we owned at the consolidated Sequoia, CAFL, Freddie Mac SLST, and Freddie Mac K-Series entities was $235 million, $268 million, $450 million, and $31 million, respectively. (3) Represents the estimated average duration of outstanding servicer advances at a given point in time (not taking into account new advances made with respect to the pool).

Residential Loans (Tables)

Residential Loans (Tables)	6 Months Ended
	Jun. 30, 2021
Receivables [Abstract]
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 June 30, 2021 and December 31, 2020. Table 6.1 – Classifications and Carrying Values of Residential Loans June 30, 2021 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,160,548 $ — $ — $ — $ 1,160,548 Held-for-investment at fair value — 260,875 2,222,553 2,098,624 4,582,052 Total Residential Loans $ 1,160,548 $ 260,875 $ 2,222,553 $ 2,098,624 $ 5,742,600 December 31, 2020 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 176,641 $ — $ — $ — $ 176,641 Held-for-investment at fair value — 285,935 1,565,322 2,221,153 4,072,410 Total Residential Loans $ 176,641 $ 285,935 $ 1,565,322 $ 2,221,153 $ 4,249,051 Table 7.1 – Classifications and Carrying Values of Business Purpose Loans June 30, 2021 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 418,442 — $ — $ 418,442 Held-for-investment at fair value — 3,263,878 726,569 3,990,447 Total Business Purpose Loans $ 418,442 $ 3,263,878 $ 726,569 $ 4,408,889 December 31, 2020 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 245,394 $ — $ — $ 245,394 Held-for-investment at fair value — 3,249,194 641,765 3,890,959 Total Business Purpose Loans $ 245,394 $ 3,249,194 $ 641,765 $ 4,136,353 The following table provides the activity of business purpose loans at Redwood during the three and six months ended June 30, 2021 and 2020. Table 7.2 – Activity of Business Purpose Loans at Redwood Three Months Ended Three Months Ended (In Thousands) SFR at Redwood Bridge SFR at Redwood Bridge Principal balance of loans originated $ 312,217 $ 215,160 $ 175,876 $ 58,468 Principal balance of loans sold to third parties — 354 — 1,558 Fair value of loans transferred from HFS to HFI (1) 297,301 N/A 220,923 N/A Fair value of loans transferred from HFI to HFS (2) 44,922 — — — Mortgage banking activities income (loss) recorded (3) 25,222 978 1,210 (3,277) Investment fair value changes recorded (4) — (62) 2,222 21,774 Six Months Ended Six Months Ended (In Thousands) SFR at Redwood Bridge SFR at Redwood Bridge Principal balance of loans originated $ 565,315 $ 348,389 $ 436,005 $ 285,836 Principal balance of loans sold to third parties — 9,231 26,148 22,293 Fair value of loans transferred from HFS to HFI (1) 466,705 N/A 599,032 N/A Fair value of loans transferred from HFI to HFS (2) 44,922 — — — Mortgage banking activities income (loss) recorded (3) 35,470 1,521 11,540 (3,441) Investment fair value changes recorded (4) — 3,242 (20,806) (16,828) (1) Represents the transfer of single-family rental loans from held-for-sale to held-for-investment associated with CAFL securitizations. (2) Represents the transfer of single-family rental loans from held-for-investment to held-for-sale associated with the call of a consolidated CAFL securitization during the second quarter of 2021. (3) Represents net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio. Additionally, for the three and six months ended June 30, 2021, we recorded loan origination fee income of $7 million and $13 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). For the three and six months ended June 30, 2020, we recorded loan origination fee income of $2 million and $11 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). (4) Represents net market valuation changes for loans classified as held-for-investment. Table 7.3 – Activity of Single-Family Rental Loans Held-for-Investment at CAFL Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Net market valuation gains (losses) recorded (1) $ (1,230) $ 169,327 $ (62,132) $ (102,590) (1) For loans held at our consolidated CAFL entities, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at June 30, 2021 and December 31, 2020. Table 7.4 – Characteristics of Business Purpose Loans June 30, 2021 Single-Family Rental at Redwood Single-Family Rental at CAFL Bridge (Dollars in Thousands) Number of loans 112 1,121 2,471 Unpaid principal balance $ 399,900 $ 3,060,949 $ 729,149 Fair value of loans $ 418,442 $ 3,263,878 $ 726,569 Weighted average coupon 4.84 % 5.34 % 7.63 % Weighted average remaining loan term (years) 7 5 1 Market value of loans pledged as collateral under short-term debt facilities $ 122,277 N/A $ 127,133 Market value of loans pledged as collateral under long-term debt facilities $ 246,903 N/A $ 555,791 Delinquency information Number of loans with 90+ day delinquencies (1) 9 21 40 Unpaid principal balance of loans with 90+ day delinquencies $ 6,586 $ 59,841 $ 35,018 Fair value of loans with 90+ day delinquencies (2) $ 5,369 N/A $ 31,512 Number of loans in foreclosure 7 10 43 Unpaid principal balance of loans in foreclosure $ 5,976 $ 24,212 $ 32,611 Fair value of loans in foreclosure (2) $ 4,798 N/A $ 28,963 December 31, 2020 Single-Family Rental at Redwood Single-Family Rental at CAFL Bridge (Dollars in Thousands) Number of loans 65 1,094 1,725 Unpaid principal balance $ 234,475 $ 3,017,137 $ 649,532 Fair value of loans $ 245,394 $ 3,249,194 $ 641,765 Weighted average coupon 4.84 % 5.44 % 8.09 % Weighted average remaining loan term (years) 8 5 1 Market value of loans pledged as collateral under short-term debt facilities $ 34,098 N/A $ 92,931 Market value of loans pledged as collateral under long-term debt facilities $ 154,774 N/A $ 544,151 Delinquency information Number of loans with 90+ day delinquencies (1) 10 22 31 Unpaid principal balance of loans with 90+ day delinquencies $ 7,127 $ 61,440 $ 39,415 Fair value of loans with 90+ day delinquencies (2) $ 6,143 N/A $ 33,605 Number of loans in foreclosure — 10 25 Unpaid principal balance of loans in foreclosure $ — $ 24,745 $ 38,552 Fair value of loans in foreclosure (2) $ — N/A $ 33,066 (1) The number of loans greater than 90 days delinquent includes loans in foreclosure. (2) 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.
Characteristics of Residential Loans Held-For-Sale	The following table summarizes the characteristics of residential loans held-for-sale at June 30, 2021 and December 31, 2020. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) June 30, 2021 December 31, 2020 Number of loans 1,316 198 Unpaid principal balance $ 1,135,356 $ 172,748 Fair value of loans $ 1,160,548 $ 176,641 Market value of loans pledged as collateral under short-term borrowing agreements $ 1,152,267 $ 156,355 Delinquency information Number of loans with 90+ day delinquencies 2 1 Unpaid principal balance of loans with 90+ day delinquencies $ 2,100 $ 1,882 Fair value of loans with 90+ day delinquencies $ 1,397 $ 1,223 Number of loans in foreclosure — —
Quarterly Activity of Residential Loans Held-for-Sale	The following table provides the activity of residential loans held-for-sale during the three and six months ended June 30, 2021 and 2020. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Principal balance of loans acquired $ 3,484,633 $ 57,743 $ 6,580,681 $ 2,687,651 Principal balance of loans sold 3,324,919 2,280,076 5,600,751 4,936,795 Net market valuation gains (losses) recorded (1) 26,278 (2,014) 49,707 (15,494) (1) Net market valuation gains (losses) on residential loans held-for-sale are recorded primarily through Mortgage banking activities, net on our consolidated statements of income (loss).
Characteristics of Residential Loans Held-for-Investment	The following tables summarize the characteristics of the residential loans owned at consolidated Sequoia and Freddie Mac SLST entities at June 30, 2021 and December 31, 2020. Table 6.4 – Characteristics of Residential Loans Held-for-Investment June 30, 2021 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,733 2,775 12,902 Unpaid principal balance $ 295,368 $ 2,193,269 $ 2,107,256 Fair value of loans $ 260,875 $ 2,222,553 $ 2,098,624 Delinquency information Number of loans with 90+ day delinquencies (1) 43 48 1,446 Unpaid principal balance of loans with 90+ day delinquencies $ 14,878 $ 38,502 $ 261,504 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 18 3 308 Unpaid principal balance of loans in foreclosure $ 3,830 $ 2,257 $ 51,191 December 31, 2020 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,908 2,177 13,605 Unpaid principal balance $ 333,474 $ 1,550,454 $ 2,247,771 Fair value of loans $ 285,935 $ 1,565,322 $ 2,221,153 Delinquency information Number of loans with 90+ day delinquencies (1) 52 94 2,110 Unpaid principal balance of loans with 90+ day delinquencies $ 17,285 $ 74,742 $ 389,245 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 21 3 245 Unpaid principal balance of loans in foreclosure $ 4,939 $ 2,251 $ 38,610 (1) For loans held at consolidated entities, the number of loans greater than 90 days delinquent includes loans in foreclosure. (2) 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.
Quarterly Activity of Residential Loans Held-for-Investment	The following table provides the activity of residential loans held-for-investment at Redwood during the three and six months ended June 30, 2021 and 2020. Table 6.5 – Activity of Residential Loans Held-for-Investment at Redwood Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Fair value of loans transferred from HFS to HFI $ — $ — $ — $ 13,258 Fair value of loans transferred from HFI to HFS — — — 1,870,986 Net market valuation gains (losses) recorded (1) — 104 — (93,532) (1) Subsequent to the transfer of these loans to our investment portfolio, net market valuation gains (losses) on residential loans held-for-investment at Redwood are recorded through Investment fair value changes, net on our consolidated statements of income (loss). The following table provides the activity of residential loans held-for-investment at consolidated entities during the three and six months ended June 30, 2021 and 2020. Table 6.6 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Legacy Freddie Mac Legacy Freddie Mac (In Thousands) Sequoia Sequoia SLST Sequoia Sequoia SLST Fair value of loans transferred from HFS to HFI (1) N/A $ 1,205,494 N/A N/A $ 270,506 N/A Net market valuation gains (losses) recorded (1) 4,863 (12,835) 22,579 8,081 93,932 48,587 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Legacy Freddie Mac Legacy Freddie Mac (In Thousands) Sequoia Sequoia SLST Sequoia Sequoia SLST Fair value of loans transferred from HFS to HFI (1) N/A $ 1,205,494 N/A N/A $ 270,506 N/A Net market valuation gains (losses) recorded (1) 12,476 (15,413) 19,014 (60,933) (16,553) (144,433) (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. (2) For loans held at our consolidated Legacy Sequoia, Sequoia, and Freddie Mac SLST entities, market value changes are based on the estimated fair value of the associated ABS issued, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 .

Business Purpose Loans (Tables)

Business Purpose Loans (Tables)	6 Months Ended
	Jun. 30, 2021
Receivables [Abstract]
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 June 30, 2021 and December 31, 2020. Table 6.1 – Classifications and Carrying Values of Residential Loans June 30, 2021 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,160,548 $ — $ — $ — $ 1,160,548 Held-for-investment at fair value — 260,875 2,222,553 2,098,624 4,582,052 Total Residential Loans $ 1,160,548 $ 260,875 $ 2,222,553 $ 2,098,624 $ 5,742,600 December 31, 2020 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 176,641 $ — $ — $ — $ 176,641 Held-for-investment at fair value — 285,935 1,565,322 2,221,153 4,072,410 Total Residential Loans $ 176,641 $ 285,935 $ 1,565,322 $ 2,221,153 $ 4,249,051 Table 7.1 – Classifications and Carrying Values of Business Purpose Loans June 30, 2021 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 418,442 — $ — $ 418,442 Held-for-investment at fair value — 3,263,878 726,569 3,990,447 Total Business Purpose Loans $ 418,442 $ 3,263,878 $ 726,569 $ 4,408,889 December 31, 2020 Single-Family Rental Residential (In Thousands) Redwood CAFL Bridge Total Held-for-sale at fair value $ 245,394 $ — $ — $ 245,394 Held-for-investment at fair value — 3,249,194 641,765 3,890,959 Total Business Purpose Loans $ 245,394 $ 3,249,194 $ 641,765 $ 4,136,353 The following table provides the activity of business purpose loans at Redwood during the three and six months ended June 30, 2021 and 2020. Table 7.2 – Activity of Business Purpose Loans at Redwood Three Months Ended Three Months Ended (In Thousands) SFR at Redwood Bridge SFR at Redwood Bridge Principal balance of loans originated $ 312,217 $ 215,160 $ 175,876 $ 58,468 Principal balance of loans sold to third parties — 354 — 1,558 Fair value of loans transferred from HFS to HFI (1) 297,301 N/A 220,923 N/A Fair value of loans transferred from HFI to HFS (2) 44,922 — — — Mortgage banking activities income (loss) recorded (3) 25,222 978 1,210 (3,277) Investment fair value changes recorded (4) — (62) 2,222 21,774 Six Months Ended Six Months Ended (In Thousands) SFR at Redwood Bridge SFR at Redwood Bridge Principal balance of loans originated $ 565,315 $ 348,389 $ 436,005 $ 285,836 Principal balance of loans sold to third parties — 9,231 26,148 22,293 Fair value of loans transferred from HFS to HFI (1) 466,705 N/A 599,032 N/A Fair value of loans transferred from HFI to HFS (2) 44,922 — — — Mortgage banking activities income (loss) recorded (3) 35,470 1,521 11,540 (3,441) Investment fair value changes recorded (4) — 3,242 (20,806) (16,828) (1) Represents the transfer of single-family rental loans from held-for-sale to held-for-investment associated with CAFL securitizations. (2) Represents the transfer of single-family rental loans from held-for-investment to held-for-sale associated with the call of a consolidated CAFL securitization during the second quarter of 2021. (3) Represents net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio. Additionally, for the three and six months ended June 30, 2021, we recorded loan origination fee income of $7 million and $13 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). For the three and six months ended June 30, 2020, we recorded loan origination fee income of $2 million and $11 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). (4) Represents net market valuation changes for loans classified as held-for-investment. Table 7.3 – Activity of Single-Family Rental Loans Held-for-Investment at CAFL Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Net market valuation gains (losses) recorded (1) $ (1,230) $ 169,327 $ (62,132) $ (102,590) (1) For loans held at our consolidated CAFL entities, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at June 30, 2021 and December 31, 2020. Table 7.4 – Characteristics of Business Purpose Loans June 30, 2021 Single-Family Rental at Redwood Single-Family Rental at CAFL Bridge (Dollars in Thousands) Number of loans 112 1,121 2,471 Unpaid principal balance $ 399,900 $ 3,060,949 $ 729,149 Fair value of loans $ 418,442 $ 3,263,878 $ 726,569 Weighted average coupon 4.84 % 5.34 % 7.63 % Weighted average remaining loan term (years) 7 5 1 Market value of loans pledged as collateral under short-term debt facilities $ 122,277 N/A $ 127,133 Market value of loans pledged as collateral under long-term debt facilities $ 246,903 N/A $ 555,791 Delinquency information Number of loans with 90+ day delinquencies (1) 9 21 40 Unpaid principal balance of loans with 90+ day delinquencies $ 6,586 $ 59,841 $ 35,018 Fair value of loans with 90+ day delinquencies (2) $ 5,369 N/A $ 31,512 Number of loans in foreclosure 7 10 43 Unpaid principal balance of loans in foreclosure $ 5,976 $ 24,212 $ 32,611 Fair value of loans in foreclosure (2) $ 4,798 N/A $ 28,963 December 31, 2020 Single-Family Rental at Redwood Single-Family Rental at CAFL Bridge (Dollars in Thousands) Number of loans 65 1,094 1,725 Unpaid principal balance $ 234,475 $ 3,017,137 $ 649,532 Fair value of loans $ 245,394 $ 3,249,194 $ 641,765 Weighted average coupon 4.84 % 5.44 % 8.09 % Weighted average remaining loan term (years) 8 5 1 Market value of loans pledged as collateral under short-term debt facilities $ 34,098 N/A $ 92,931 Market value of loans pledged as collateral under long-term debt facilities $ 154,774 N/A $ 544,151 Delinquency information Number of loans with 90+ day delinquencies (1) 10 22 31 Unpaid principal balance of loans with 90+ day delinquencies $ 7,127 $ 61,440 $ 39,415 Fair value of loans with 90+ day delinquencies (2) $ 6,143 N/A $ 33,605 Number of loans in foreclosure — 10 25 Unpaid principal balance of loans in foreclosure $ — $ 24,745 $ 38,552 Fair value of loans in foreclosure (2) $ — N/A $ 33,066 (1) The number of loans greater than 90 days delinquent includes loans in foreclosure. (2) 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.

Multifamily Loans (Tables)

Multifamily Loans (Tables)	6 Months Ended
	Jun. 30, 2021
Receivables [Abstract]
Schedule of Multifamily Loans	The following table summarizes the characteristics of the multifamily loans consolidated at Redwood at June 30, 2021 and December 31, 2020. Table 8.1 – Characteristics of Multifamily Loans (Dollars in Thousands) June 30, 2021 December 31, 2020 Number of loans 28 28 Unpaid principal balance $ 459,002 $ 462,808 Fair value of loans $ 485,157 $ 492,221 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 4 5 Delinquency information Number of loans with 90+ day delinquencies — — Number of loans in foreclosure — — The outstanding multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at June 30, 2021 were first-lien, fixed-rate loans that were originated in 2015. The following table provides the activity of multifamily loans held-for-investment during the three and six months ended June 30, 2021 and 2020. Table 8.2 – Activity of Multifamily Loans Held-for-Investment Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Net market valuation gains (losses) recorded (1) $ (2,528) $ 18,591 $ (3,258) $ (63,840) (1) Net market valuation gains (losses) on multifamily loans held-for-investment are recorded through Investment fair value changes, net on our consolidated statements of income (loss). For loans held at our consolidated Freddie Mac K-Series entity, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 4.2 .

Real Estate Securities (Tables)

Real Estate Securities (Tables)	6 Months Ended
	Jun. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Fair Values of Real Estate Securities by Type	The following table presents the fair values of our real estate securities by type at June 30, 2021 and December 31, 2020. Table 9.1 – Fair Values of Real Estate Securities by Type (In Thousands) June 30, 2021 December 31, 2020 Trading $ 142,425 $ 125,667 Available-for-sale 212,461 218,458 Total Real Estate Securities $ 354,886 $ 344,125
Trading Securities by Collateral Type	The following table presents the fair value of trading securities by position and collateral type at June 30, 2021 and December 31, 2020. Table 9.2 – Fair Value of Trading Securities by Position (In Thousands) June 30, 2021 December 31, 2020 Senior Interest-only securities (1) $ 25,267 $ 28,464 Total Senior 25,267 28,464 Mezzanine Sequoia securities — 3,649 Total Mezzanine — 3,649 Subordinate RPL securities 60,887 47,448 Multifamily securities 8,266 5,592 Other third-party residential securities 48,005 40,514 Total Subordinate 117,158 93,554 Total Trading Securities $ 142,425 $ 125,667 (1) Includes $17 million and $13 million of Sequoia certificated mortgage servicing rights at June 30, 2021 and December 31, 2020, respectively. The following table presents the unpaid principal balance of trading securities by position and collateral type at June 30, 2021 and December 31, 2020. Table 9.3 – Unpaid Principal Balance of Trading Securities by Position (In Thousands) June 30, 2021 December 31, 2020 Senior (1) $ — $ — Mezzanine — 3,577 Subordinate 208,381 242,278 Total Trading Securities $ 208,381 $ 245,855 (1) Our senior trading securities include interest-only securities, for which there is no principal balance. The following table provides the activity of trading securities during the three and six months ended June 30, 2021 and 2020. Table 9.4 – Trading Securities Activity Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Principal balance of securities acquired $ 1,750 $ 10,250 $ 17,630 $ 66,721 Principal balance of securities sold 18,068 85,747 52,811 704,614 Net market valuation gains (losses) recorded (1) 1,798 42,246 23,147 (221,079) (1) Net market valuation gains (losses) on trading securities are recorded through Investment fair value changes, net and Mortgage banking activities, net on our consolidated statements of income (loss).
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 June 30, 2021 and December 31, 2020. Table 9.5 – Fair Value of Available-for-Sale Securities by Position (In Thousands) June 30, 2021 December 31, 2020 Mezzanine Other third-party residential securities $ — $ 2,014 Total Mezzanine — 2,014 Subordinate Sequoia securities 140,321 136,475 Multifamily securities 34,213 43,663 Other third-party residential securities 37,927 36,306 Total Subordinate 212,461 216,444 Total AFS Securities $ 212,461 $ 218,458 The following table provides the activity of available-for-sale securities during the three and six months ended June 30, 2021 and 2020. Table 9.6 – Available-for-Sale Securities Activity Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Fair value of securities acquired $ 522 $ — $ 1,600 $ 31,181 Fair value of securities sold 2,585 8,736 4,785 55,193 Net realized gains recorded 1,307 783 1,507 4,635
Carrying Value of Residential Available for Sale Securities	The following table presents the components of carrying value (which equals fair value) of AFS securities at June 30, 2021 and December 31, 2020. Table 9.7 – Carrying Value of AFS Securities June 30, 2021 (In Thousands) Mezzanine Subordinate Total Principal balance $ — $ 254,784 $ 254,784 Credit reserve — (40,349) (40,349) Unamortized discount, net — (90,216) (90,216) Amortized cost — 124,219 124,219 Gross unrealized gains — 88,321 88,321 Gross unrealized losses — (79) (79) CECL allowance — — — Carrying Value $ — $ 212,461 $ 212,461 December 31, 2020 (In Thousands) Mezzanine Subordinate Total Principal balance $ 2,000 $ 281,284 $ 283,284 Credit reserve — (44,967) (44,967) Unamortized discount, net — (95,718) (95,718) Amortized cost 2,000 140,599 142,599 Gross unrealized gains 14 77,280 77,294 Gross unrealized losses — (1,047) (1,047) CECL allowance — (388) (388) Carrying Value $ 2,014 $ 216,444 $ 218,458
Changes of Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities	The following table presents the changes for the three and six months ended June 30, 2021, in unamortized discount and designated credit reserves on residential AFS securities. Table 9.8 – Changes in Unamortized Discount and Designated Credit Reserves on AFS Securities Three Months Ended Six Months Ended Credit Unamortized Credit Unamortized (In Thousands) Beginning balance $ 44,947 $ 94,188 $ 44,967 $ 95,718 Amortization of net discount — (1,569) — (3,183) Realized credit losses (112) — (249) — Acquisitions 890 368 2,825 1,208 Sales, calls, other (718) (7,429) (992) (9,729) Transfers to (release of) credit reserves, net (4,658) 4,658 (6,202) 6,202 Ending Balance $ 40,349 $ 90,216 $ 40,349 $ 90,216
Components of Fair Value of Available for Sale Securities by Holding Periods	The following table presents the components comprising the total carrying value of residential AFS securities that were in a gross unrealized loss position at June 30, 2021 and December 31, 2020. Table 9.9 – Components of Fair Value of AFS Securities by Holding Periods Less Than 12 Consecutive Months 12 Consecutive Months or Longer Amortized Unrealized Fair Amortized Unrealized Fair (In Thousands) June 30, 2021 $ — $ — $ — $ 3,600 $ (79) $ 3,521 December 31, 2020 9,129 (1,047) 7,920 — — —
Summary of Significant Valuation Assumptions for Available for Sale Securities Credit Loss	The table below summarizes the weighted average of the significant credit quality indicators we used for the credit loss allowance on our AFS securities at June 30, 2021. Table 9.10 – Significant Credit Quality Indicators June 30, 2021 Subordinate Securities Default rate 0.35% Loss severity 18%
Activity of Allowance for Credit Losses for Available-for-sale Securities	The following table details the activity related to the allowance for credit losses for AFS securities for the three and six months ended June 30, 2021. Table 9.11 – Rollforward of Allowance for Credit Losses Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 (In Thousands) Beginning balance allowance for credit losses $ 13 $ 388 Additions to allowance for credit losses on securities for which credit losses were not previously recorded — — Additional increases (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period (13) (388) Allowance on purchased financial assets with credit deterioration — — Reduction to allowance for securities sold during the period — — Reduction to allowance for securities we intend to sell or more likely than not will be required to sell — — Write-offs charged against allowance — — Recoveries of amounts previously written off — — Ending balance of allowance for credit losses $ — $ —
Gross Realized Gains and Losses on Available for Sale Securities	The following table presents the gross realized gains and losses on sales and calls of AFS securities for the three and six months ended June 30, 2021 and 2020. Table 9.12 – Gross Realized Gains and Losses on AFS Securities Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Gross realized gains - sales $ 1,307 $ 1,074 $ 1,507 $ 8,779 Gross realized gains - calls 6,687 — 9,095 — Gross realized losses - sales — (291) — (4,144) Total Realized Gains on Sales and Calls of AFS Securities, net $ 7,994 $ 783 $ 10,602 $ 4,635

Other Investments (Tables)

Other Investments (Tables)	6 Months Ended
	Jun. 30, 2021
Investments, All Other Investments [Abstract]
Summary of Other Investments	Other investments at June 30, 2021 and December 31, 2020 are summarized in the following table. Table 10.1 – Components of Other Investments (In Thousands) June 30, 2021 December 31, 2020 Servicer advance investments $ 184,551 $ 231,489 Shared home appreciation options 44,319 42,440 Excess MSRs 29,988 34,418 Mortgage servicing rights 8,721 8,815 Other 41,153 31,013 Total Other Investments $ 308,732 $ 348,175
Components of Servicer Advance Investments	The servicer advance receivables were comprised of the following types of advances at June 30, 2021 and December 31, 2020. Table 10.2 – Components of Servicer Advance Receivables (In Thousands) June 30, 2021 December 31, 2020 Principal and interest advances $ 80,741 $ 110,923 Escrow advances (taxes and insurance advances) 68,534 79,279 Corporate advances 22,543 27,454 Total Servicer Advance Receivables $ 171,818 $ 217,656

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
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 June 30, 2021 and December 31, 2020. Table 11.1 – Fair Value and Notional Amount of Derivative Financial Instruments June 30, 2021 December 31, 2020 Fair Notional Fair Notional (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 264 $ 133,000 $ 224 $ 42,000 TBAs 2,064 730,000 18,260 3,520,000 Interest rate futures 304 81,500 — — Swaptions 17,482 2,100,000 19,727 1,585,000 Assets - Other Derivatives Loan purchase and interest rate lock commitments 14,191 2,332,511 15,027 2,617,254 Total Assets $ 34,305 $ 5,377,011 $ 53,238 $ 7,764,254 Liabilities - Risk Management Derivatives Interest rate swaps $ (957) $ 87,500 $ — $ — TBAs (1,367) 730,000 (15,495) 3,105,000 Interest rate futures (194) 140,000 — — Liabilities - Other Derivatives Loan purchase commitments (722) 164,971 (577) 477,153 Total Liabilities $ (3,240) $ 1,122,471 $ (16,072) $ 3,582,153 Total Derivative Financial Instruments, Net $ 31,065 $ 6,499,482 $ 37,166 $ 11,346,407
Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges	The following table illustrates the impact on interest expense of our interest rate agreements accounted for as cash flow hedges for the three and six months ended June 30, 2021 and 2020. Table 11.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Net interest expense on cash flows hedges $ — $ — $ — $ (860) Realized net losses reclassified from other comprehensive income (1,028) (1,029) (2,046) (1,108) Total Interest Expense $ (1,028) $ (1,029) $ (2,046) $ (1,968)

Other Assets and Liabilities (T

Other Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Components of Other Assets	Other assets at June 30, 2021 and December 31, 2020 are summarized in the following table. Table 12.1 – Components of Other Assets (In Thousands) June 30, 2021 December 31, 2020 Accrued interest receivable $ 41,366 $ 39,445 Investment receivable 38,281 43,176 REO 15,489 8,413 Operating lease right-of-use assets 14,370 15,012 Margin receivable 10,269 4,758 Fixed assets and leasehold improvements (1) 7,202 4,203 Pledged collateral — 1,177 Other 9,455 14,404 Total Other Assets $ 136,432 $ 130,588
Components of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities at June 30, 2021 and December 31, 2020 are summarized in the following table. Table 12.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) June 30, 2021 December 31, 2020 Accrued compensation $ 42,737 $ 24,393 Accrued interest payable 35,615 34,858 Margin payable 19,503 14,728 Operating lease liabilities 15,997 16,687 Payable to minority partner 15,414 16,941 Unsettled trades 13,952 — Residential loan and MSR repurchase reserve 8,709 8,631 Guarantee obligations 8,446 10,039 Accrued income taxes payable 5,395 5,614 Bridge loan holdbacks 5,394 5,708 Accrued operating expenses 4,938 5,509 Deferred consideration — 14,579 Other 15,605 21,653 Total Accrued Expenses and Other Liabilities $ 191,705 $ 179,340
Other Real Estate	The following table summarizes the activity and carrying values of REO assets held at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL entities during the six months ended June 30, 2021. Table 12.3 – REO Activity Six Months Ended June 30, 2021 (In Thousands) Redwood Bridge Legacy Sequoia Freddie Mac SLST CAFL Total Balance at beginning of period $ 4,600 $ 638 $ 646 $ 2,529 $ 8,413 Transfers to REO 2,289 65 1,548 11,924 15,826 Liquidations (1) (5,972) (39) (766) (1,949) (8,726) Changes in fair value, net 428 (5) 208 (655) (24) Balance at End of Period $ 1,345 $ 659 $ 1,636 $ 11,849 $ 15,489 (1) For the six months ended June 30, 2021, REO liquidations resulted in less than $0.1 million of realized losses, which were recorded in Investment fair value changes, net on our consolidated statements of income (loss). The following table provides the detail of REO assets at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL entities at June 30, 2021 and December 31, 2020. Table 12.4 – REO Assets Number of REO assets Redwood Bridge Legacy Sequoia Freddie Mac SLST CAFL Total At June 30, 2021 3 3 18 2 26 At December 31, 2020 3 3 9 2 17

Short-Term Debt (Tables)

Short-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Short-Term Debt Facilities	The table below summarizes our short-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at June 30, 2021 and December 31, 2020. Table 13.1 – Short-Term Debt June 30, 2021 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate (1) Maturity Weighted Average Days Until Maturity Facilities Residential loan warehouse 6 $ 1,049,144 $ 2,350,000 1.87 % 8/2021-3/2022 211 Business purpose loan warehouse 2 191,288 355,497 2.99 % 3/2022-5/2022 260 Real estate securities repo 3 80,938 — 1.53 % 7/2021-9/2021 35 Total Short-Term Debt Facilities 11 1,321,370 Servicer advance financing 1 163,629 260,000 1.89 % 11/2021 153 Total Short-Term Debt $ 1,484,999 December 31, 2020 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate (1) Maturity Weighted Average Days Until Maturity Facilities Residential loan warehouse 4 $ 137,269 $ 1,300,000 2.45 % 1/2021-11/2021 268 Business purpose loan warehouse 2 99,190 500,000 3.37 % 5/2022-6/2022 521 Real estate securities repo 3 77,775 — 2.24 % 1/2021-3/2021 36 Total Short-Term Debt Facilities 9 314,234 Servicer advance financing 1 208,375 335,000 1.95 % 11/2021 334 Total Short-Term Debt $ 522,609
Collateral for Short-Term Debt Facilities	The following table below presents the value of loans, securities, and other assets pledged as collateral under our short-term debt at June 30, 2021 and December 31, 2020. Table 13.2 – Collateral for Short-Term Debt (In Thousands) June 30, 2021 December 31, 2020 Collateral Type Held-for-sale residential loans $ 1,152,267 $ 156,355 Business purpose loans 249,410 127,029 Real estate securities On balance sheet 16,435 23,193 Sequoia securitizations (1) 62,387 63,105 Freddie Mac K-Series securitization (1) 30,834 28,255 Total real estate securities owned 109,656 114,553 Restricted cash and other assets 1,709 315 Total Collateral for Short-Term Debt Facilities 1,513,042 398,252 Cash 12,442 9,978 Restricted cash 19,028 23,220 Servicer advances 171,818 217,656 Total Collateral for Servicer Advance Financing 203,288 250,854 Total Collateral for Short-Term Debt $ 1,716,330 $ 649,106
Short-Term Debt by Collateral Type and Remaining Maturities	The following table presents the remaining maturities of our secured short-term debt by the type of collateral securing the debt at June 30, 2021. Table 13.3 – Short-Term Debt by Collateral Type and Remaining Maturities June 30, 2021 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for-sale residential loans $ — $ 119,462 $ 929,682 $ 1,049,144 Business purpose loans — — 191,288 191,288 Real estate securities 44,527 36,411 — 80,938 Total Secured Short-Term Debt 44,527 155,873 1,120,970 1,321,370 Servicer advance financing — — 163,629 163,629 Total Short-Term Debt $ 44,527 $ 155,873 $ 1,284,599 $ 1,484,999

Asset-Backed Securities Issued

Asset-Backed Securities Issued (Tables)	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Asset-Backed Securities Issued	The carrying values of ABS issued by our consolidated securitization entities at June 30, 2021 and December 31, 2020, along with other selected information, are summarized in the following table. Table 14.1 – Asset-Backed Securities Issued June 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST (1) Freddie Mac Total (Dollars in Thousands) Certificates with principal balance $ 291,083 $ 1,946,901 $ 2,746,648 $ 1,718,754 $ 422,534 $ 7,125,920 Interest-only certificates 788 15,282 167,460 21,455 11,627 216,612 Market valuation adjustments (33,660) 28,365 93,488 86,109 20,163 194,465 ABS Issued, Net $ 258,211 $ 1,990,548 $ 3,007,596 $ 1,826,318 $ 454,324 $ 7,536,997 Range of weighted average interest rates, by series 0.49% to 1.46% 2.31% to 5.10% 2.62% to 5.20% 3.50% to 4.75% 3.41 % Stated maturities 2024 - 2036 2047 - 2051 2021 - 2031 2028 - 2059 2025 Number of series 20 12 14 3 1 December 31, 2020 Legacy Sequoia CAFL Freddie Mac SLST (1) Freddie Mac K-Series Total (Dollars in Thousands) Certificates with principal balance $ 329,039 $ 1,309,957 $ 2,716,425 $ 1,866,145 $ 416,339 $ 6,637,905 Interest-only certificates 1,092 4,591 162,934 23,335 13,026 204,978 Market valuation adjustments (47,805) 32,809 133,734 104,439 34,601 257,778 ABS Issued, Net $ 282,326 $ 1,347,357 $ 3,013,093 $ 1,993,919 $ 463,966 $ 7,100,661 Range of weighted average interest rates, by series 0.35% to 1.55% 2.25% to 5.04% 2.68% to 5.42% 3.50% to 4.75% 3.39 % Stated maturities 2024 - 2036 2047 - 2050 2021 - 2031 2028 - 2059 2025 Number of series 20 10 14 3 1 (1) Includes $179 million and $205 million (principal balance) of ABS issued by a re-securitization trust sponsored by Redwood and accounted for at amortized cost at June 30, 2021 and December 31, 2020, respectively.
Accrued Interest Payable on Asset-Backed Securities Issued	The following table summarizes the accrued interest payable on ABS issued at June 30, 2021 and December 31, 2020. Interest due on consolidated ABS issued is payable monthly. Table 14.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) June 30, 2021 December 31, 2020 Legacy Sequoia $ 123 $ 141 Sequoia 5,521 4,697 CAFL 10,183 10,122 Freddie Mac SLST (1) 5,200 5,656 Freddie Mac K-Series 1,200 1,177 Total Accrued Interest Payable on ABS Issued $ 22,227 $ 21,793 (1) Includes accrued interest payable on ABS issued by a re-securitization trust sponsored by Redwood.

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	The table below summarizes our long-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at June 30, 2021. Table 15.1 – Long-Term Debt June 30, 2021 (Dollars in Thousands) Borrowings Unamortized Deferred Issuance Costs / Discount Net Carrying Value Limit Weighted Average Interest Rate (1) Final Maturity Facilities Recourse Subordinate Securities Financing Sequoia $ 160,102 $ (521) $ 159,581 N/A 4.21 % 9/2024 CAFL 102,424 (505) 101,919 N/A 4.21 % 2/2025 Non-Recourse BPL Financing Facility A 45,582 (444) 45,138 45,582 L + 3.85% 7/2022 Facility B 57,616 (199) 57,417 250,000 L + 3.00% N/A Recourse BPL Financing Facility C 269,100 — 269,100 450,000 L + 3.40% 6/2023 Facility D 200,275 (158) 200,117 250,000 L + 3.00% 9/2023 Total Long-Term Debt Facilities 835,099 (1,827) 833,272 Convertible notes 4.75% convertible senior notes 198,629 (2,356) 196,273 N/A 4.75 % 8/2023 5.625% convertible senior notes 150,200 (2,450) 147,750 N/A 5.625 % 7/2024 5.75% exchangeable senior notes 172,092 (3,776) 168,316 N/A 5.75 % 10/2025 Trust preferred securities and subordinated notes 139,500 (803) 138,697 N/A L + 2.25% 7/2037 Total Long-Term Debt $ 1,495,520 $ (11,212) $ 1,484,308 (1) Variable rate borrowings are based on 1- or 3-month LIBOR ("L" in the table above) plus an applicable spread. The following table summarizes the accrued interest payable on long-term debt at June 30, 2021 and December 31, 2020. Table 15.3 – Accrued Interest Payable on Long-Term Debt (In Thousands) June 30, 2021 December 31, 2020 Long-term debt facilities $ 704 $ 1,799 Convertible notes 4.75% convertible senior notes 3,564 3,564 5.625% convertible senior notes 3,896 3,896 5.75% exchangeable senior notes 2,474 2,474 Trust preferred securities and subordinated notes 585 669 Total Accrued Interest Payable on Long-Term Debt $ 11,223 $ 12,402
Schedule of Financial Instruments Owned and Pledged as Collateral	The following table below presents the value of loans, securities, and other assets pledged as collateral under our long-term debt at June 30, 2021 and December 31, 2020. Table 15.2 – Collateral for Long-Term Debt (In Thousands) June 30, 2021 December 31, 2020 Collateral Type Bridge loans $ 555,791 $ 544,151 Single-family rental loans 246,903 154,774 Real estate securities Sequoia securitizations (1) 256,910 249,446 CAFL securitizations (1) 112,207 114,044 Total real estate securities owned 369,117 363,490 Other BPL investments — 21,414 Restricted cash — 1,100 Total Collateral for Long-Term Debt $ 1,171,811 $ 1,084,929

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Future Lease Commitments by Year	The following table presents our future lease commitments at June 30, 2021. Table 16.1 – Future Lease Commitments by Year (In Thousands) June 30, 2021 2021 (6 months) $ 1,854 2022 3,714 2023 3,235 2024 2,411 2025 1,983 2026 and thereafter 6,128 Total Lease Commitments 19,325 Less: Imputed interest (3,328) Operating Lease Liabilities $ 15,997

Equity (Tables)

Equity (Tables)	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Changes to Accumulated Other Comprehensive Income by Component	The following table provides a summary of changes to accumulated other comprehensive income by component for the three and six months ended June 30, 2021 and 2020. Table 17.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 (In Thousands) Available-for-Sale Securities Interest Rate Agreements Accounted for as Cash Flow Hedges Available-for-Sale Securities Interest Rate Agreements Accounted for as Cash Flow Hedges Balance at beginning of period $ 84,527 $ (79,539) $ (1,865) $ (83,666) Other comprehensive income 11,224 — 52,393 — Amounts reclassified from other (7,500) 1,028 2,718 1,029 Net current-period other comprehensive income 3,724 1,028 55,111 1,029 Balance at End of Period $ 88,251 $ (78,511) $ 53,246 $ (82,637) Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 (In Thousands) Available-for-Sale Securities Interest Rate Agreements Accounted for as Cash Flow Hedges Available-for-Sale Securities Interest Rate Agreements Accounted for as Cash Flow Hedges Balance at beginning of period $ 76,336 $ (80,557) $ 92,452 $ (50,939) Other comprehensive income (loss) 22,210 — (28,126) (32,806) Amounts reclassified from other (10,295) 2,046 (11,080) 1,108 Net current-period other comprehensive income (loss) 11,915 2,046 (39,206) (31,698) Balance at End of Period $ 88,251 $ (78,511) $ 53,246 $ (82,637)
Reclassifications out of Accumulated Other Comprehensive Income	The following table provides a summary of reclassifications out of accumulated other comprehensive income for the three and six months ended June 30, 2021 and 2020. Table 17.2 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amount Reclassified From Affected Line Item in the Three Months Ended June 30, (In Thousands) Income Statement 2021 2020 Net Realized (Gain) Loss on AFS Securities Decrease in allowance for credit losses on AFS securities Investment fair value changes, net $ (13) $ (54) Gain on sale of AFS securities Realized gains, net (7,487) 2,772 $ (7,500) $ 2,718 Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 1,028 $ 1,029 $ 1,028 $ 1,029 Amount Reclassified From Affected Line Item in the Six Months Ended June 30, (In Thousands) Income Statement 2021 2020 Net Realized (Gain) Loss on AFS Securities (Decrease) increase in allowance for credit losses on AFS securities Investment fair value changes, net $ (388) $ 1,471 Gain on sale of AFS securities Realized gains, net (9,907) (12,551) $ (10,295) $ (11,080) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 2,046 $ 1,108 $ 2,046 $ 1,108
Basic and Diluted Earnings Per Common Share	The following table provides the basic and diluted earnings (loss) per common share computations for the three and six months ended June 30, 2021 and 2020. Table 17.3 – Basic and Diluted Earnings (Loss) per Common Share Three Months Ended June 30, Six Months Ended June 30, (In Thousands, except Share Data) 2021 2020 2021 2020 Basic Earnings (Loss) per Common Share: Net income (loss) attributable to Redwood $ 90,025 $ 165,444 $ 187,282 $ (777,954) Less: Dividends and undistributed earnings allocated to participating securities (3,149) (4,528) (6,458) (1,011) Net income (loss) allocated to common shareholders $ 86,876 $ 160,916 $ 180,824 $ (778,965) Basic weighted average common shares outstanding 112,921,070 114,383,289 112,337,984 114,229,928 Basic Earnings (Loss) per Common Share $ 0.77 $ 1.41 $ 1.61 $ (6.82) Diluted Earnings (Loss) per Common Share: Net income (loss) attributable to Redwood $ 90,025 $ 165,444 $ 187,282 $ (777,954) Less: Dividends and undistributed earnings allocated to participating securities (2,869) (3,116) (5,829) (1,011) Adjust for interest expense and gain on extinguishment of convertible notes for the period, net of tax 6,990 (15,835) 13,971 — Net income (loss) allocated to common shareholders $ 94,146 $ 146,493 $ 195,424 $ (778,965) Weighted average common shares outstanding 112,921,070 114,383,289 112,337,984 114,229,928 Net effect of dilutive equity awards 273,139 — 234,353 — Net effect of assumed convertible notes conversion to common shares 28,566,875 32,715,790 28,566,875 — Diluted weighted average common shares outstanding 141,761,084 147,099,079 141,139,212 114,229,928 Diluted Earnings (Loss) per Common Share $ 0.66 $ 1.00 $ 1.38 $ (6.82)

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Equity Compensation Costs by Award Type	The unamortized compensation cost of awards issued under the Incentive Plan, which are settled by delivery of shares of common stock and purchases under the Employee Stock Purchase Plan, totaled $27 million at June 30, 2021, as shown in the following table. Table 18.1 – Activities of Equity Compensation Costs by Award Type Six Months Ended June 30, 2021 (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 $ 564 $ 3,540 $ 17,766 $ 5,794 $ — $ 27,664 Equity grants — 2,370 3,141 — 259 5,770 Performance-based valuation adjustment — — — 1,072 — 1,072 Equity grant forfeitures (2) (610) (550) — — (1,162) Equity compensation expense (271) (752) (3,629) (1,355) (130) (6,137) Unrecognized Compensation Cost at End of Period $ 291 $ 4,548 $ 16,728 $ 5,511 $ 129 $ 27,207

Mortgage Banking Activities, _2

Mortgage Banking Activities, Net (Tables)	6 Months Ended
	Jun. 30, 2021
Mortgage Banking [Abstract]
Mortgage Banking Activities	The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income (loss) for the three and six months ended June 30, 2021 and 2020. Table 19.1 – Mortgage Banking Activities Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ 76,907 $ (1,393) $ 47,634 $ 6,562 Trading securities (2) (1,095) — (374) — Risk management derivatives (3) (55,740) — 33,224 (31,294) Other income (expense), net (4) 1,193 (6,612) 2,216 (6,354) Total residential mortgage banking activities, net 21,265 (8,005) 82,700 (31,086) Business Purpose Mortgage Banking Activities, Net: Changes in fair value of: Single-family rental loans, at fair value (1) 25,966 1,210 36,214 13,018 Risk management derivatives (3) (2,504) — 1,354 (21,538) Bridge loans, at fair value 2,225 (1,260) 3,269 (5,194) Other income, net (5) 7,467 2,073 13,489 9,916 Total business purpose mortgage banking activities, net 33,154 2,023 54,326 (3,798) Mortgage Banking Activities, Net $ 54,419 $ (5,982) $ 137,026 $ (34,884) (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 fair value changes on trading securities that are being used as hedges to manage the mark-to-market risks associated with our residential mortgage banking operations. (3) Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations. (4) Amounts in this line item include other fee income from loan acquisitions and provisions for repurchase expense, presented net. (5) Amounts in this line item include other fee income from loan originations.

Other Income (Tables)

Other Income (Tables)	6 Months Ended
	Jun. 30, 2021
Other Income and Expenses [Abstract]
Schedule of other income	The following table presents the components of Other income recorded in our consolidated statements of income (loss) for the three and six months ended June 30, 2021 and 2020. Table 20.1 – Other Income Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 MSR (loss) income, net $ (43) $ (1,424) $ 654 $ (3,233) Risk share income 861 1,181 1,743 1,946 FHLBC capital stock dividend 25 538 50 1,085 Bridge loan fees 911 626 1,604 1,804 Other 372 244 1,918 2,491 Other Income $ 2,126 $ 1,165 $ 5,969 $ 4,093

General and Administrative Ex_2

General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses (Tables)	6 Months Ended
	Jun. 30, 2021
Other Income and Expenses [Abstract]
Components of General and Administrative Expenses and Other Expenses	Components of our general and administrative expenses, loan acquisition costs, and other expenses for the three and six months ended June 30, 2021 and 2020 are presented in the following table. Table 21.1 – Components of General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2021 2020 2021 2020 General and Administrative Expenses Fixed compensation expense $ 11,269 $ 11,818 $ 23,074 $ 26,502 Annual variable compensation 12,508 3,278 31,177 3,289 Long-term incentive award expense (1) 5,682 3,262 9,851 5,257 Acquisition-related equity compensation expense (2) 1,212 1,212 2,424 2,424 Systems and consulting 3,272 2,395 6,249 5,607 Office costs 2,024 1,887 3,832 3,995 Accounting and legal 1,221 2,788 1,935 5,004 Corporate costs 873 626 1,564 1,297 Other 2,533 1,254 4,039 3,827 Total General and Administrative Expenses 40,594 28,520 84,145 57,202 Loan Acquisition Costs Commissions 1,661 360 2,924 2,148 Underwriting costs 1,836 856 3,521 2,518 Transfer and holding costs 251 356 862 892 Total Loan Acquisition Costs 3,748 1,572 7,307 5,558 Other Expenses Goodwill impairment expense — — — 88,675 Amortization of purchase-related intangible assets 3,873 3,873 7,746 8,182 Other 112 1,210 335 (359) Total Other Expenses 3,985 5,083 8,081 96,498 Total General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses $ 48,327 $ 35,175 $ 99,533 $ 159,258 (1) For the three months ended June 30, 2021, long-term incentive award expense includes $4 million of expense for awards settleable in shares of our common stock and $1 million of expense for awards settleable in cash. For the six months ended June 30, 2021, long-term incentive award expense includes $7 million of expense for awards settleable in shares of our common stock and $3 million of expense for awards settleable in cash. (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 is being recognized as compensation expense over the two-year vesting period on a straight-line basis in accordance with GAAP.

Taxes (Tables)

Taxes (Tables)	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Reconciliation of Statutory Tax Rate to Effective Tax Rate	The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at June 30, 2021 and 2020. Table 22.1 – Reconciliation of Statutory Tax Rate to Effective Tax Rate June 30, 2021 June 30, 2020 Federal statutory rate 21.0 % 21.0 % State statutory rate, net of Federal tax effect 8.6 % 8.6 % Differences in taxable (loss) income from GAAP income (14.1) % (23.6) % Change in valuation allowance (3.3) % (3.2) % Dividends paid deduction (1) (3.3) % — % Effective Tax Rate 8.9 % 2.8 % (1) The dividends paid deduction in the effective tax rate reconciliation is generally representative of the amount of distributions to shareholders that reduce REIT taxable income. For the six months ended June 30, 2020, the dividends paid deduction is 0% due to our REIT incurring a taxable loss during the period; therefore, there was no REIT taxable income available to apply against the dividends paid.

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Business Segment Financial Information	The following tables present financial information by segment for the three and six months ended June 30, 2021 and 2020. Table 23.1 – Business Segment Financial Information Three Months Ended June 30, 2021 (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total Interest income $ 33,033 $ 70,515 $ 33,972 $ 1,175 $ 138,695 Interest expense (21,056) (54,442) (22,334) (10,233) (108,065) Net interest income 11,977 16,073 11,638 (9,058) 30,630 Non-interest income Mortgage banking activities, net 21,265 33,154 — — 54,419 Investment fair value changes, net 3,927 3,782 42,018 (247) 49,480 Other income, net 839 1,017 5 265 2,126 Realized gains, net 6,687 390 1,307 — 8,384 Total non-interest income (loss), net 32,718 38,343 43,330 18 114,409 General and administrative expenses (7,793) (13,688) (930) (18,183) (40,594) Loan acquisition costs (1,887) (1,861) — — (3,748) Other expenses — (3,873) (112) — (3,985) Provision for income taxes (4,171) (2,182) (334) — (6,687) Segment Contribution $ 30,844 $ 32,812 $ 53,592 $ (27,223) Net Income $ 90,025 Non-cash amortization (expense) income, net $ 1,339 $ (5,584) $ 185 $ (1,955) $ (6,015) Six Months Ended June 30, 2021 (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total Interest income $ 60,581 $ 134,920 $ 68,962 $ 2,537 $ 267,000 Interest expense (40,093) (104,517) (45,513) (20,494) (210,617) Net interest income 20,488 30,403 23,449 (17,957) 56,383 Non-interest income Mortgage banking activities, net 82,700 54,326 — — 137,026 Investment fair value changes, net 6,673 7,081 81,734 (921) 94,567 Other income, net 3,692 1,860 5 412 5,969 Realized gains, net 9,095 498 1,507 — 11,100 Total non-interest income, net 102,160 63,765 83,246 (509) 248,662 General and administrative expenses (21,550) (24,847) (2,061) (35,687) (84,145) Loan acquisition costs (3,303) (3,913) (87) (4) (7,307) Other expenses (6) (7,650) (442) 17 (8,081) Provision for income taxes (14,150) (3,503) (577) — (18,230) Segment Contribution $ 83,639 $ 54,255 $ 103,528 $ (54,140) Net Income $ 187,282 Non-cash amortization (expense) income, net $ 3,005 $ (11,441) $ 41 $ (3,850) $ (12,245) Three Months Ended June 30, 2020 (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total Interest income $ 36,653 $ 53,742 $ 36,811 $ 2,740 $ 129,946 Interest expense (28,762) (36,631) (24,927) (12,346) (102,666) Net interest income 7,891 17,111 11,884 (9,606) 27,280 Non-interest income Mortgage banking activities, net (8,005) 2,023 — — (5,982) Investment fair value changes, net 35,085 40,401 76,972 (230) 152,228 Other income, net 230 686 (509) 758 1,165 Realized gains, net 205 — 578 25,182 25,965 Total non-interest income, net 27,515 43,110 77,041 25,710 173,376 General and administrative expenses (3,700) (9,016) (1,986) (13,818) (28,520) Loan acquisition costs (175) (1,277) (120) — (1,572) Other expenses — (3,884) (1,065) (134) (5,083) Benefit from (provision for) income taxes 3,323 2,439 (5,799) — (37) Segment Contribution $ 34,854 $ 48,483 $ 79,955 $ 2,152 Net Income $ 165,444 Non-cash amortization income (expense), net $ (1,265) $ (6,391) $ 312 $ (1,619) $ (8,963) Six Months Ended June 30, 2020 (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total Interest income $ 97,284 $ 106,802 $ 118,007 $ 5,934 $ 328,027 Interest expense (66,324) (68,984) (87,428) (26,601) (249,337) Net interest income 30,960 37,818 30,579 (20,667) 78,690 Non-interest income Mortgage banking activities, net (31,086) (3,798) — — (34,884) Investment fair value changes, net (161,550) (101,729) (454,586) (739) (718,604) Other income, net (267) 2,870 732 758 4,093 Realized gains, net 2,001 — 2,634 25,182 29,817 Total non-interest income, net (190,902) (102,657) (451,220) 25,201 (719,578) General and administrative expenses (8,299) (20,656) (3,521) (24,726) (57,202) Loan acquisition costs (1,208) (3,970) (373) (7) (5,558) Other expenses — (96,869) 817 (446) (96,498) Benefit from income taxes 8,653 9,021 4,518 — 22,192 Segment Contribution $ (160,796) $ (177,313) $ (419,200) $ (20,645) Net Loss $ (777,954) Non-cash amortization income (expense), net $ (1,053) $ (11,316) $ 1,053 $ (1,728) $ (13,044) Other significant non-cash expense: goodwill impairment $ — $ (88,675) $ — $ — $ (88,675)
Components of Corporate and Other	The following table presents the components of Corporate/Other for the three and six months ended June 30, 2021 and 2020. Table 23.2 – Components of Corporate/Other Three Months Ended June 30, 2021 2020 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 1,169 $ 6 $ 1,175 $ 2,685 $ 55 $ 2,740 Interest expense (755) (9,478) (10,233) (1,518) (10,828) (12,346) Net interest income 414 (9,472) (9,058) 1,167 (10,773) (9,606) Non-interest income Investment fair value changes, net (216) (31) (247) (230) — (230) Other income — 265 265 — 758 758 Realized gains, net — — — — 25,182 25,182 Total non-interest income, net (216) 234 18 (230) 25,940 25,710 General and administrative expenses — (18,183) (18,183) — (13,818) (13,818) Other expenses — — — — (134) (134) Total $ 198 $ (27,421) $ (27,223) $ 937 $ 1,215 $ 2,152 Six Months Ended June 30, 2021 2020 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 2,517 $ 20 $ 2,537 $ 5,879 $ 55 $ 5,934 Interest expense (1,630) (18,864) (20,494) (4,040) (22,561) (26,601) Net interest income 887 (18,844) (17,957) 1,839 (22,506) (20,667) Non-interest income Investment fair value changes, net (915) (6) (921) (621) (118) (739) Other income — 412 412 — 758 758 Realized gains, net — — — — 25,182 25,182 Total non-interest income, net (915) 406 (509) (621) 25,822 25,201 General and administrative expenses — (35,687) (35,687) — (24,726) (24,726) Loan acquisition costs — (4) (4) — (7) (7) Other expenses — 17 17 — (446) (446) Total $ (28) $ (54,112) $ (54,140) $ 1,218 $ (21,863) $ (20,645) (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 Information by Segment	The following table presents supplemental information by segment at June 30, 2021 and December 31, 2020. Table 23.3 – Supplemental Segment Information (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total June 30, 2021 Residential loans $ 3,383,101 $ — $ 2,098,624 $ 260,875 $ 5,742,600 Business purpose loans — 4,408,889 — — 4,408,889 Multifamily loans — — 485,157 — 485,157 Real estate securities 163,609 — 191,277 — 354,886 Other investments 8,721 13,168 267,851 18,992 308,732 Intangible assets — 49,119 — — 49,119 Total assets 3,615,860 4,576,139 3,063,094 741,298 11,996,391 December 31, 2020 Residential loans $ 1,741,963 $ — $ 2,221,153 $ 285,935 $ 4,249,051 Business purpose loans — 4,136,353 — — 4,136,353 Multifamily loans — — 492,221 — 492,221 Real estate securities 160,780 — 183,345 — 344,125 Other investments 8,815 21,627 317,282 451 348,175 Intangible assets — 56,865 — — 56,865 Total assets 1,989,802 4,323,040 3,232,415 809,809 10,355,066

Organization (Details)

Organization (Details)	6 Months Ended
	Jun. 30, 2021segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	3

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2021USD ($)	Mar. 31, 2021USD ($)shares	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)partnership	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership				2
VIE, ownership interest rate				80.00%
Amortization of purchase-related intangible assets	$ 3,873		$ 3,873	$ 7,746	$ 8,182
5 Arches
Variable Interest Entity [Line Items]
Intangible assets						$ 25,000
Shares issued for settlement of remaining deferred consideration | shares		806,068
Cash payment for contingent consideration liability		$ 1,000
CoreVest
Variable Interest Entity [Line Items]
Intangible assets						$ 57,000

Basis of Presentation - Intangi

Basis of Presentation - Intangible Assets – Activity (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 49,119
Carrying value	49,119
5 Arches LLC and CoreVest
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	49,119	$ 81,300
Accumulated amortization	(32,181)
Carrying value	$ 49,119	81,300
Weighted Average Amortization Period (in years)	6 years
5 Arches LLC and CoreVest | Borrower network
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 34,245	45,300
Accumulated amortization	(11,055)
Carrying value	$ 34,245	45,300
Weighted Average Amortization Period (in years)	7 years
5 Arches LLC and CoreVest | Broker network
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 9,653	18,100
Accumulated amortization	(8,447)
Carrying value	$ 9,653	18,100
Weighted Average Amortization Period (in years)	5 years
5 Arches LLC and CoreVest | Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 3,486	9,500
Accumulated amortization	(6,014)
Carrying value	$ 3,486	9,500
Weighted Average Amortization Period (in years)	3 years
5 Arches LLC and CoreVest | Tradenames
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 1,472	4,000
Accumulated amortization	(2,528)
Carrying value	$ 1,472	4,000
Weighted Average Amortization Period (in years)	3 years
5 Arches LLC and CoreVest | Developed technology
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 263	1,800
Accumulated amortization	(1,537)
Carrying value	$ 263	1,800
Weighted Average Amortization Period (in years)	2 years
5 Arches LLC and CoreVest | Loan administration fees on existing loan assets
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 0	2,600
Accumulated amortization	(2,600)
Carrying value	$ 0	$ 2,600
Weighted Average Amortization Period (in years)	1 year

Basis of Presentation - Intan_2

Basis of Presentation - Intangible Asset Amortization Expense by Year (Details) $ in Thousands	Jun. 30, 2021USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
2021 (6 months)	$ 7,558
2022	12,800
2023	10,091
2024	7,073
2025 and thereafter	11,597
Total Future Intangible Asset Amortization	$ 49,119

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Offsetting of Financial Assets, Liabilities, and Collateral (Details) - USD ($) $ in Thousands		Jun. 30, 2021	Dec. 31, 2020
Assets
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet	[1]	$ 34,305	$ 53,238
Liabilities
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet	[1]	(3,240)	(16,072)
Total Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(1,132,600)	(230,539)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(1,132,600)	(230,539)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		1,131,711	228,467
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		889	1,061
Net Amount		0	(1,011)
Interest rate agreements
Assets
Gross Amounts of Recognized Assets (Liabilities)		17,746	19,951
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		17,746	19,951
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(957)	0
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		(11,238)	(7,769)
Net Amount		5,551	12,182
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(957)
Gross Amounts Offset in Consolidated Balance Sheet		0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(957)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		957
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		0
Net Amount		0
TBAs
Assets
Gross Amounts of Recognized Assets (Liabilities)		2,064	18,260
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		2,064	18,260
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(478)	(13,423)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		(1,393)	(4,658)
Net Amount		193	179
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(1,367)	(15,495)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(1,367)	(15,495)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		478	13,423
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		889	1,061
Net Amount		0	(1,011)
Futures
Assets
Gross Amounts of Recognized Assets (Liabilities)		304
Gross Amounts Offset in Consolidated Balance Sheet		0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		304
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(194)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		0
Net Amount		110
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(194)
Gross Amounts Offset in Consolidated Balance Sheet		0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(194)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		194
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		0
Net Amount		0
Interest Rate Agreement, TBAs, and Futures
Assets
Gross Amounts of Recognized Assets (Liabilities)		20,114	38,211
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		20,114	38,211
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(1,629)	(13,423)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		(12,631)	(12,427)
Net Amount		5,854	12,361
Loan warehouse debt
Loan warehouse debt and Security repurchase agreement
Gross Amounts of Recognized Assets (Liabilities)		(1,049,144)	(137,269)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(1,049,144)	(137,269)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		1,049,144	137,269
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		0	0
Net Amount		0	0
Security repurchase agreements
Loan warehouse debt and Security repurchase agreement
Gross Amounts of Recognized Assets (Liabilities)		(80,938)	(77,775)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(80,938)	(77,775)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		80,938	77,775
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) 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 June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, respectively. See Note 4 for further discussion.

Principles of Consolidation - A

Principles of Consolidation - Additional Information (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2021USD ($)entity	Jun. 30, 2021USD ($)partnershipentity	Dec. 31, 2020USD ($)
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership		2
VIE, ownership interest rate		80.00%
MSRs	$ 171,818	$ 171,818	$ 217,656
Loans for sale at fair value that were acquired	$ 97,000	$ 97,000
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership		2
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Number of securitization entities to which asset transferred (in entities) | entity	52	52
Number of entities called | entity	3	4
Unpaid principal balance of loans purchased	$ 83,000	$ 101,000
Gain related to called security	7,000	9,000
Legacy Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Estimated fair value of investments	4,000	4,000
Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Estimated fair value of investments	234,000	234,000
CAFL
Variable Interest Entity [Line Items]
Loans transferred to held-for-sale	45,000
CAFL | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Estimated fair value of investments	272,000	272,000
Freddie Mac SLST | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Estimated fair value of investments	452,000	452,000
Freddie Mac K-Series | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Estimated fair value of investments	31,000	31,000
Servicing Investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
MSRs	$ 62,000	$ 62,000

Principles of Consolidation -_2

Principles of Consolidation - Assets and Liabilities of Consolidated Variable Interest Entities Accounted for as Collateralized Financing Entities (Details) $ in Thousands		Jun. 30, 2021USD ($)investment	Dec. 31, 2020USD ($)investment
Variable Interest Entity [Line Items]
Other investments	[1]	$ 308,732	$ 348,175
Cash and cash equivalents	[1]	421,223	461,260
Restricted cash	[1]	55,048	83,190
Accrued interest receivable		41,366	39,445
Other assets	[1]	136,432	130,588
Total Assets	[1]	11,996,391	10,355,066
Short-term debt	[1]	1,484,999	522,609
Accrued interest payable		35,615	34,858
Accrued expenses and other liabilities	[1]	191,705	179,340
Asset-backed securities issued	[1]	7,536,997	7,100,661
Total liabilities	[1]	10,701,249	9,244,167
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Other investments		202,369	251,773
Cash and cash equivalents		12,459	11,579
Restricted cash		19,176	23,368
Accrued interest receivable		30,176	30,587
Other assets		21,168	9,937
Total Assets		8,616,435	8,141,069
Short-term debt		163,629	208,375
Accrued interest payable		21,612	21,274
Accrued expenses and other liabilities		16,360	18,403
Asset-backed securities issued		7,360,766	6,900,362
Total liabilities		$ 7,562,367	$ 7,148,414
Number of VIEs | investment		53	50
Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		$ 4,582,052	$ 4,072,410
Business purpose loans, held-for-investment
Variable Interest Entity [Line Items]
Fair value of loans	[1]	3,990,447	3,890,959
Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		3,263,878	3,249,194
Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		485,157	492,221
Legacy Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		148	148
Accrued interest receivable		258	305
Other assets		659	638
Total Assets		261,940	287,026
Short-term debt		0	0
Accrued interest payable		124	141
Accrued expenses and other liabilities		0	0
Asset-backed securities issued		258,211	282,326
Total liabilities		$ 258,335	$ 282,467
Number of VIEs | investment		20	20
Legacy Sequoia | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		$ 260,875	$ 285,935
Legacy Sequoia | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Legacy Sequoia | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		0	0
Accrued interest receivable		7,559	6,802
Other assets		0	0
Total Assets		2,230,112	1,572,124
Short-term debt		0	0
Accrued interest payable		5,521	4,697
Accrued expenses and other liabilities		0	50
Asset-backed securities issued		1,990,548	1,347,357
Total liabilities		$ 1,996,069	$ 1,352,104
Number of VIEs | investment		12	10
Sequoia | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		$ 2,222,553	$ 1,565,322
Sequoia | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Sequoia | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		0	0
CAFL | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		0	0
Accrued interest receivable		13,102	13,055
Other assets		12,596	2,930
Total Assets		3,289,576	3,265,179
Short-term debt		0	0
Accrued interest payable		10,183	10,278
Accrued expenses and other liabilities		0	0
Asset-backed securities issued		3,007,596	3,013,093
Total liabilities		$ 3,017,779	$ 3,023,371
Number of VIEs | investment		14	14
CAFL | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		$ 0	$ 0
CAFL | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		3,263,878	3,249,194
CAFL | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac SLST | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		0	0
Accrued interest receivable		6,325	6,754
Other assets		1,636	646
Total Assets		2,106,585	2,228,553
Short-term debt		0	0
Accrued interest payable		4,490	4,846
Accrued expenses and other liabilities		0	0
Asset-backed securities issued		1,650,087	1,793,620
Total liabilities		$ 1,654,577	$ 1,798,466
Number of VIEs | investment		3	2
Freddie Mac SLST | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		$ 2,098,624	$ 2,221,153
Freddie Mac SLST | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac SLST | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac K-Series | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		0	0
Accrued interest receivable		1,326	1,337
Other assets		0	0
Total Assets		486,483	493,558
Short-term debt		0	0
Accrued interest payable		1,200	1,177
Accrued expenses and other liabilities		0	0
Asset-backed securities issued		454,324	463,966
Total liabilities		$ 455,524	$ 465,143
Number of VIEs | investment		1	1
Freddie Mac K-Series | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		$ 0	$ 0
Freddie Mac K-Series | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac K-Series | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		485,157	492,221
Servicing Investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Other investments		202,369	251,773
Cash and cash equivalents		12,459	11,579
Restricted cash		19,028	23,220
Accrued interest receivable		1,606	2,334
Other assets		6,277	5,723
Total Assets		241,739	294,629
Short-term debt		163,629	208,375
Accrued interest payable		94	135
Accrued expenses and other liabilities		16,360	18,353
Asset-backed securities issued		0	0
Total liabilities		$ 180,083	$ 226,863
Number of VIEs | investment		3	3
Servicing Investment | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		$ 0	$ 0
Servicing Investment | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Servicing Investment | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fair value of loans		$ 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 June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, respectively. See Note 4 for further discussion.

Principles of Consolidation - I

Principles of Consolidation - Income (Loss) from Consolidated VIEs Accounted for as Collateralized Financing Entities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Variable Interest Entity [Line Items]
Interest income	$ 138,695	$ 129,946	$ 267,000	$ 328,027
Interest expense	(108,065)	(102,666)	(210,617)	(249,337)
Net Interest Income	30,630	27,280	56,383	78,690
Investment fair value changes, net	49,480	152,228	94,567	(718,604)
Total non-interest income (loss), net	114,409	173,376	248,662	(719,578)
General and administrative expenses	(40,594)	(28,520)	(84,145)	(57,202)
Net Income (Loss)	90,025	165,444	187,282	(777,954)
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	98,917	88,824	193,788	213,352
Interest expense	(74,845)	(67,104)	(145,789)	(169,176)
Net Interest Income	24,072	21,720	47,999	44,176
Investment fair value changes, net	44,238	87,591	59,943	(290,868)
Total non-interest income (loss), net	44,238	87,591	59,943	(290,868)
General and administrative expenses	(52)	(712)	(90)	(743)
Other expenses	(112)	(1,065)	(442)	817
Net Income (Loss)	68,146	107,534	107,410	(246,618)
Legacy Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	1,169	2,685	2,517	5,879
Interest expense	(755)	(1,518)	(1,630)	(4,040)
Net Interest Income	414	1,167	887	1,839
Investment fair value changes, net	(216)	(230)	(915)	(621)
Total non-interest income (loss), net	(216)	(230)	(915)	(621)
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net Income (Loss)	198	937	(28)	1,218
Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	14,492	22,564	29,975	47,647
Interest expense	(11,374)	(19,117)	(23,480)	(40,627)
Net Interest Income	3,118	3,447	6,495	7,020
Investment fair value changes, net	4,906	39,752	9,804	(29,916)
Total non-interest income (loss), net	4,906	39,752	9,804	(29,916)
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net Income (Loss)	8,024	43,199	16,299	(22,896)
CAFL | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	54,849	32,978	103,722	62,988
Interest expense	(43,201)	(24,446)	(81,054)	(46,385)
Net Interest Income	11,648	8,532	22,668	16,603
Investment fair value changes, net	3,697	16,313	3,411	(51,533)
Total non-interest income (loss), net	3,697	16,313	3,411	(51,533)
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net Income (Loss)	15,345	24,845	26,079	(34,930)
Freddie Mac SLST | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	19,506	21,187	39,665	43,173
Interest expense	(13,927)	(15,846)	(28,395)	(32,022)
Net Interest Income	5,579	5,341	11,270	11,151
Investment fair value changes, net	36,316	26,866	40,433	(115,295)
Total non-interest income (loss), net	36,316	26,866	40,433	(115,295)
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net Income (Loss)	41,895	32,207	51,703	(104,144)
Freddie Mac K-Series | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	4,860	4,870	9,646	45,042
Interest expense	(4,478)	(4,380)	(8,834)	(42,728)
Net Interest Income	382	490	812	2,314
Investment fair value changes, net	1,855	1,599	10,776	(84,910)
Total non-interest income (loss), net	1,855	1,599	10,776	(84,910)
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net Income (Loss)	2,237	2,089	11,588	(82,596)
Servicing Investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	4,041	4,540	8,263	8,623
Interest expense	(1,110)	(1,797)	(2,396)	(3,374)
Net Interest Income	2,931	2,743	5,867	5,249
Investment fair value changes, net	(2,320)	3,291	(3,566)	(8,593)
Total non-interest income (loss), net	(2,320)	3,291	(3,566)	(8,593)
General and administrative expenses	(52)	(712)	(90)	(743)
Other expenses	(112)	(1,065)	(442)	817
Net Income (Loss)	$ 447	$ 4,257	$ 1,769	$ (3,270)

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	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Variable Interest Entity [Line Items]
Principal balance of loans transferred	$ 355,924	$ 0	$ 1,231,803	$ 1,573,703
Trading securities retained, at fair value
Variable Interest Entity [Line Items]
Securities retained, at fair value	1,225	0	7,774	43,362
AFS securities retained, at fair value
Variable Interest Entity [Line Items]
Securities retained, at fair value	$ 522	$ 0	$ 1,600	$ 3,198

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	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Variable Interest Entity [Line Items]
Proceeds from new transfers	$ 361,673	$ 0	$ 1,266,063	$ 1,610,761
MSR fees received	1,336	2,475	2,943	5,165
Funding of compensating interest, net	(70)	(205)	(170)	(297)
Cash flows received on retained securities	$ 16,764	$ 6,788	$ 25,393	$ 13,369

Principles of Consolidation -_3

Principles of Consolidation - Assumptions Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020
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	8.00%	11.00%	41.00%
Discount rates	15.00%	15.00%	16.00%
Credit loss assumptions	0.25%	0.23%	0.21%
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	8.00%	11.00%	13.00%
Discount rates	7.00%	6.00%	6.00%
Credit loss assumptions	0.25%	0.23%	0.22%

Principles of Consolidation -_4

Principles of Consolidation - Summary of Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
On-balance sheet assets, at fair value:
Subordinate securities, classified as AFS	$ 212,461	$ 218,458
Servicing asset, fair value	171,818	217,656
Variable Interest Entity, Not Primary Beneficiary
On-balance sheet assets, at fair value:
Maximum loss exposure	167,344	165,870
Assets transferred:
Principal balance of loans outstanding	6,326,188	7,728,432
Principal balance of loans 30+ days delinquent	58,362	138,029
Interest-only, senior and subordinate securities, classified as trading | Variable Interest Entity, Not Primary Beneficiary
On-balance sheet assets, at fair value:
Interest-only, senior and subordinate securities, classified as trading	20,527	20,982
Subordinate securities, classified as AFS | Variable Interest Entity, Not Primary Beneficiary
On-balance sheet assets, at fair value:
Subordinate securities, classified as AFS	140,321	136,475
Mortgage servicing rights
On-balance sheet assets, at fair value:
Servicing asset, fair value	8,721	8,815
Mortgage servicing rights | Variable Interest Entity, Not Primary Beneficiary
On-balance sheet assets, at fair value:
Servicing asset, fair value	$ 6,496	$ 8,413

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	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
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	$ 6,496	$ 8,413
Expected life (in years)	2 years	2 years
Prepayment speed assumption (annual CPR)	38.00%	37.00%
Decrease in fair value from:
10% adverse change	$ 613	$ 906
25% adverse change	$ 1,422	$ 2,058
Discount rate assumption	12.00%	12.00%
Decrease in fair value from:
100 basis point increase	$ 139	$ 196
200 basis point increase	271	380
Senior Securities
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value	$ 20,527	$ 17,333
Expected life (in years)	4 years	3 years
Prepayment speed assumption (annual CPR)	25.00%	31.00%
Decrease in fair value from:
10% adverse change	$ 1,374	$ 1,557
25% adverse change	$ 3,120	$ 3,754
Discount rate assumption	18.00%	21.00%
Decrease in fair value from:
100 basis point increase	$ 462	$ 337
200 basis point increase	$ 900	$ 659
Credit loss assumption	0.39%	0.41%
Decrease in fair value from:
10% higher losses	$ 0	$ 0
25% higher losses	0	0
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	$ 140,321	$ 140,124
Expected life (in years)	8 years	8 years
Prepayment speed assumption (annual CPR)	33.00%	33.00%
Decrease in fair value from:
10% adverse change	$ 238	$ 452
25% adverse change	$ 440	$ 2,298
Discount rate assumption	3.50%	5.00%
Decrease in fair value from:
100 basis point increase	$ 10,058	$ 9,769
200 basis point increase	$ 19,174	$ 18,650
Credit loss assumption	0.39%	0.41%
Decrease in fair value from:
10% higher losses	$ 2,671	$ 2,409
25% higher losses	$ 6,384	$ 5,915
Minimum | MSRs
Decrease in fair value from:
Impact of adverse change in prepayment speed	10.00%	10.00%
Impact of increase in discount rate assumption	1.00%	1.00%
Impact of adverse change in expected credit losses	10.00%	10.00%
Minimum | Senior Securities
Decrease in fair value from:
Impact of adverse change in prepayment speed	10.00%	10.00%
Impact of increase in discount rate assumption	1.00%	1.00%
Impact of adverse change in expected credit losses	10.00%	10.00%
Minimum | Subordinate Securities
Decrease in fair value from:
Impact of adverse change in prepayment speed	10.00%	10.00%
Impact of increase in discount rate assumption	1.00%	1.00%
Impact of adverse change in expected credit losses	10.00%	10.00%
Maximum | MSRs
Decrease in fair value from:
Impact of adverse change in prepayment speed	25.00%	25.00%
Impact of increase in discount rate assumption	2.00%	2.00%
Impact of adverse change in expected credit losses	25.00%	25.00%
Maximum | Senior Securities
Decrease in fair value from:
Impact of adverse change in prepayment speed	25.00%	25.00%
Impact of increase in discount rate assumption	2.00%	2.00%
Impact of adverse change in expected credit losses	25.00%	25.00%
Maximum | Subordinate Securities
Decrease in fair value from:
Impact of adverse change in prepayment speed	25.00%	25.00%
Impact of increase in discount rate assumption	2.00%	2.00%
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) - USD ($) $ in Thousands		Jun. 30, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Real estate securities	[1]	$ 354,886	$ 344,125
Other assets | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		206,208	200,801
Other assets | Senior | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		4,740	11,131
Other assets | Mezzanine | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		0	2,014
Other assets | Subordinate | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		189,298	173,523
Other assets | Total Mortgage-Backed Securities | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		194,038	186,668
Other assets | Excess MSR | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		$ 12,170	$ 14,133
[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 June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, respectively. See Note 4 for further discussion.

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		Jun. 30, 2021	Dec. 31, 2020
Assets
Real estate securities		$ 142,425	$ 125,667
MSRs		171,818	217,656
Derivative assets	[1]	34,305	53,238
Pledged collateral		0	1,177
Liabilities
Derivative liabilities	[1]	3,240	16,072
ABS issued, net, Fair value		7,360,766	6,900,362
Residential Loans
Assets
MSRs		184,551	231,489
Carrying Value
Assets
Real estate securities		354,886	344,125
Other financial instruments		28,556	10,203
Cash and cash equivalents		421,223	461,260
Restricted cash		55,048	83,190
Derivative assets		34,305	53,238
Margin receivable		10,269	4,758
FHLBC stock		10	5,000
Pledged collateral		0	1,177
Liabilities
Margin payable		19,503	0
Guarantee obligation		8,446	10,039
Derivative liabilities		3,240	16,072
ABS issued, net, Fair value		7,360,766	6,900,362
ABS issued, net, Amortized cost		176,231	200,299
Other long-term debt, net (5)		833,272	774,726
Convertible notes, net (5)		512,339	511,085
Trust preferred securities and subordinated notes, net (5)		138,697	138,674
Carrying Value | Servicer Advance Investments
Assets
MSRs		184,551	231,489
Carrying Value | MSRs
Assets
MSRs		8,721	8,815
Carrying Value | Excess MSRs
Assets
REO		29,988	34,418
Carrying Value | REO
Assets
REO		15,489	8,413
Carrying Value | Short-term debt
Liabilities
Short-term debt		1,484,999	522,609
Carrying Value | Residential Loans | Residential loans, at fair value
Assets
Loans, held-for-sale		1,160,513	176,604
Carrying Value | Residential Loans | Residential loans, held-for-investment
Assets
Loans receivable, fair value		4,582,052	4,072,410
Carrying Value | Residential Loans | Business purpose residential loans, held-for-sale
Assets
Loans, held-for-sale		418,442	245,394
Carrying Value | Residential Loans | Business purpose loans, held-for-investment
Assets
Loans receivable, fair value		3,990,447	3,890,959
Carrying Value | Residential Loans | Multifamily loans
Assets
Loans receivable, fair value		485,157	492,221
Fair Value
Assets
Real estate securities		354,886	344,125
Other financial instruments		28,556	10,203
Cash and cash equivalents		421,223	461,260
Restricted cash		55,048	83,190
Derivative assets		34,305	53,238
Margin receivable		10,269	4,758
FHLBC stock		10	5,000
Pledged collateral		0	1,177
Liabilities
Margin payable		19,503	0
Guarantee obligation		5,932	7,843
Derivative liabilities		3,240	16,072
ABS issued, net, Fair value		7,360,766	6,900,362
ABS issued, net, Amortized cost		180,080	204,892
Other long-term debt, net (5)		834,214	783,570
Convertible notes, net (5)		531,473	499,865
Trust preferred securities and subordinated notes, net (5)		87,188	80,910
Fair Value | Servicer Advance Investments
Assets
MSRs		184,551	231,489
Fair Value | MSRs
Assets
MSRs		8,721	8,815
Fair Value | Excess MSRs
Assets
REO		29,988	34,418
Fair Value | REO
Assets
REO		17,718	9,229
Fair Value | Short-term debt
Liabilities
Short-term debt		1,484,999	522,609
Fair Value | Residential Loans | Residential loans, at fair value
Assets
Loans, held-for-sale		1,160,513	176,604
Fair Value | Residential Loans | Residential loans, held-for-investment
Assets
Loans receivable, fair value		4,582,052	4,072,410
Fair Value | Residential Loans | Business purpose residential loans, held-for-sale
Assets
Loans, held-for-sale		418,442	245,394
Fair Value | Residential Loans | Business purpose loans, held-for-investment
Assets
Loans receivable, fair value		3,990,447	3,890,959
Fair Value | Residential Loans | Multifamily loans
Assets
Loans receivable, fair value		485,157	492,221
Shared home appreciation options
Assets
Shared home appreciation options			42,440
Shared home appreciation options | Carrying Value
Assets
Shared home appreciation options		44,319	42,440
Shared home appreciation options | Fair Value
Assets
Shared home appreciation options		$ 44,319	$ 42,440
[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 June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 4	$ 26
Residential loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	3,480	6,580
Business purpose loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	527	$ 914
Excess MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	2
Other Financial Instrument
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 2

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		Jun. 30, 2021	Dec. 31, 2020
Assets
Real estate securities		$ 142,425	$ 125,667
MSRs		171,818	217,656
Derivative assets	[1]	34,305	53,238
Pledged collateral		0	1,177
Liabilities
Derivative liabilities	[1]	3,240	16,072
ABS issued		7,360,766	6,900,362
Fair Value, Measurements, Recurring
Assets
Business purpose loans		4,408,889	4,136,353
Multifamily loans		485,157	492,221
Real estate securities		354,886	344,125
Servicer advance investments		184,551	231,489
MSRs		8,721	8,815
Excess MSRs		29,988	34,418
Shared home appreciation options		44,319	42,440
Derivative assets		34,305	53,238
Pledged collateral			1,177
FHLBC stock			5,000
Liabilities
Derivative liabilities		3,240	16,072
ABS issued		7,360,766	6,900,362
Fair Value, Measurements, Recurring | Residential Loans
Assets
Residential loans		5,742,565	4,249,014
Fair Value, Measurements, Recurring | Level 1
Assets
Business purpose loans		0	0
Multifamily loans		0	0
Real estate securities		0	0
Servicer advance investments		0	0
MSRs		0	0
Excess MSRs		0	0
Shared home appreciation options		0	0
Derivative assets		2,368	18,260
Pledged collateral			1,177
FHLBC stock			0
Liabilities
Derivative liabilities		1,561	15,495
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 loans		0	0
Multifamily loans		0	0
Real estate securities		0	0
Servicer advance investments		0	0
MSRs		0	0
Excess MSRs		0	0
Shared home appreciation options		0	0
Derivative assets		17,746	19,951
Pledged collateral			0
FHLBC stock			5,000
Liabilities
Derivative liabilities		957	0
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 loans		4,408,889	4,136,353
Multifamily loans		485,157	492,221
Real estate securities		354,886	344,125
Servicer advance investments		184,551	231,489
MSRs		8,721	8,815
Excess MSRs		29,988	34,418
Shared home appreciation options		44,319	42,440
Derivative assets		14,191	15,027
Pledged collateral			0
FHLBC stock			0
Liabilities
Derivative liabilities		722	577
ABS issued		7,360,766	6,900,362
Fair Value, Measurements, Recurring | Level 3 | Residential Loans
Assets
Residential loans		$ 5,742,565	$ 4,249,014
[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 June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, 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) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)
ABS Issued
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	$ 6,900,362
Acquisitions	1,629,218
Principal paydowns	(1,055,541)
Gains (losses) in net income (loss), net	(113,273)
Other settlements, net	0
Ending balance - June 30, 2021	7,360,766
Residential Loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	4,249,014
Acquisitions	6,684,292
Originations	0
Sales	(4,531,811)
Principal paydowns	(727,627)
Gains (losses) in net income (loss), net	70,184
Unrealized losses in OCI, net	0
Other settlements, net	(1,487)
Ending balance - June 30, 2021	5,742,565
Business purpose loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	4,136,353
Acquisitions	0
Originations	913,704
Sales	(9,231)
Principal paydowns	(599,889)
Gains (losses) in net income (loss), net	(17,835)
Unrealized losses in OCI, net	0
Other settlements, net	(14,213)
Ending balance - June 30, 2021	4,408,889
Multifamily loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	492,221
Acquisitions	0
Originations	0
Sales	0
Principal paydowns	(3,806)
Gains (losses) in net income (loss), net	(3,258)
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - June 30, 2021	485,157
Trading Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	125,667
Acquisitions	26,367
Originations	0
Sales	(31,949)
Principal paydowns	(807)
Gains (losses) in net income (loss), net	23,147
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - June 30, 2021	142,425
AFS Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	218,458
Acquisitions	1,600
Originations	0
Sales	(4,785)
Principal paydowns	(28,979)
Gains (losses) in net income (loss), net	14,172
Unrealized losses in OCI, net	11,995
Other settlements, net	0
Ending balance - June 30, 2021	212,461
Servicer Advance Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	231,489
Acquisitions	0
Originations	0
Sales	0
Principal paydowns	(45,838)
Gains (losses) in net income (loss), net	(1,100)
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - June 30, 2021	184,551
MSRs
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	8,815
Acquisitions	2,283
Originations	0
Sales	0
Principal paydowns	0
Gains (losses) in net income (loss), net	(2,251)
Unrealized losses in OCI, net	0
Other settlements, net	(126)
Ending balance - June 30, 2021	8,721
Excess MSRs
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	34,418
Acquisitions	0
Originations	0
Sales	0
Principal paydowns	0
Gains (losses) in net income (loss), net	(4,430)
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - June 30, 2021	29,988
Shared Home Appreciation Options
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	42,440
Acquisitions	0
Originations	0
Sales	0
Principal paydowns	(5,516)
Gains (losses) in net income (loss), net	7,395
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - June 30, 2021	44,319
Derivatives
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	14,450
Acquisitions	0
Principal paydowns	0
Gains (losses) in net income (loss), net	(197)
Other settlements, net	(784)
Ending balance - June 30, 2021	$ 13,469

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	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Residential loan purchase commitments, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 liabilities still held included in net income	$ (696)	$ 2,137	$ (724)	$ (1,634)
Held-for-investment at fair value | Residential loans at Redwood
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	14,130	(359)	10,481	(746)
Held-for-investment at fair value | Sequoia
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	4,693	39,558	8,893	(30,502)
Held-for-investment at fair value | Freddie Mac SLST
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	36,137	26,867	40,225	(115,295)
Business purpose loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	28,404	31,187	40,003	(21,026)
Multifamily loans | Freddie Mac K-Series
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	1,855	1,599	10,776	(13,180)
Single family rental loans | CAFL
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	2,908	17,125	2,556	(50,721)
Trading Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	1,772	30,647	2,262	(79,633)
Servicer Advance Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	(940)	(136)	(1,100)	(6,198)
MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	(330)	(1,591)	273	(16,507)
Excess MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	(2,477)	2,971	(4,430)	(6,523)
Shared home appreciation options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	2,080	884	7,395	(6,670)
Residential loan purchase commitments, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	$ 14,550	$ 357	$ 14,171	$ 357

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 $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2021USD ($)	Jun. 30, 2021USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
REO	$ 1,233	$ 1,233
Gain (Loss) on assets measured at fair value on a non-recurring basis	(3)	(7)
Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
REO	0	0
Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
REO	0	0
Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
REO	$ 1,233	$ 1,233

Fair Value of Financial Instr_9

Fair Value of Financial Instruments - Market Valuation Adjustments, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	$ (43)	$ (1,424)	$ 654	$ (3,233)
Total Market Valuation Gains (Losses), Net	93,858	146,830	213,641	(765,647)
Mortgage Banking Activities, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	45,759	(1,443)	121,321	(38,446)
Mortgage Banking Activities, Net | Residential loans, at fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	24,988	(2,014)	48,100	(15,494)
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	51,919	621	(466)	22,056
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	25,222	1,210	35,470	12,677
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	744	0	744	341
Mortgage Banking Activities, Net | Bridge loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	2,225	(1,260)	3,269	(5,194)
Mortgage Banking Activities, Net | Trading securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(1,095)	0	(374)	0
Mortgage Banking Activities, Net | Risk management derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(58,244)	0	34,578	(52,832)
Investment Fair Value Changes, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	49,480	152,228	94,567	(718,604)
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	2,893	42,246	23,521	(221,079)
Investment Fair Value Changes, Net | Risk management derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	0	0	0	(59,142)
Investment Fair Value Changes, Net | Residential loans at Redwood
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	1,290	104	1,607	(93,532)
Investment Fair Value Changes, Net | Single Family Rental Loans Held For Investment At Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	0	2,222	0	(20,806)
Investment Fair Value Changes, Net | Bridge loans held-for-investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(62)	21,774	3,242	(16,828)
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	(940)	(136)	(1,100)	(6,198)
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	(2,477)	2,971	(4,430)	(6,523)
Investment Fair Value Changes, Net | Legacy Sequoia
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(216)	(230)	(915)	(621)
Investment Fair Value Changes, Net | Sequoia
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	4,906	39,753	9,804	(29,916)
Investment Fair Value Changes, Net | Freddie Mac SLST
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	36,316	26,867	40,433	(115,295)
Investment Fair Value Changes, Net | Freddie Mac K-Series
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	1,855	1,599	10,776	(84,910)
Investment Fair Value Changes, Net | CAFL
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	3,697	17,125	3,411	(50,721)
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	2,080	884	7,395	(6,670)
Investment Fair Value Changes, Net | Other investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	125	(3,005)	435	(4,892)
Investment Fair Value Changes, Net | Credit recoveries (losses) on AFS securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	13	54	388	(1,471)
Other Income
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	(1,381)	(3,955)	(2,247)	(8,597)
Other Income | Risk management derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	0	0	0	13,966
Other Income | MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	$ (1,381)	$ (3,955)	$ (2,247)	$ (22,563)

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	6 Months Ended
	Jun. 30, 2021USD ($)$ / loan	Dec. 31, 2020USD ($)	Jun. 30, 2020
Assets
ABS issued, net, Fair value | $	$ 7,360,766	$ 6,900,362
ABS Issued
Liabilities
ABS issued | $	$ 2,248,759
ABS Issued | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement input	0.07
ABS Issued | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement input	0.51
ABS Issued | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement input	0.33
ABS Issued | Discount rate | Minimum
Liabilities
ABS issued, measurement input	0.01
ABS Issued | Discount rate | Maximum
Liabilities
ABS issued, measurement input	0.18
ABS Issued | Discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.03
ABS Issued | Default rate | Minimum
Liabilities
ABS issued, measurement input	0
ABS Issued | Default rate | Maximum
Liabilities
ABS issued, measurement input	0.39
ABS Issued | Default rate | Weighted Average
Liabilities
ABS issued, measurement input	0.02
ABS Issued | Loss severity | Minimum
Liabilities
ABS issued, measurement input	0.25
ABS Issued | Loss severity | Maximum
Liabilities
ABS issued, measurement input	0.50
ABS Issued | Loss severity | Weighted Average
Liabilities
ABS issued, measurement input	0.32
Freddie Mac SLST
Liabilities
ABS issued | $	$ 1,650,087
Freddie Mac SLST | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement input	0.06
Freddie Mac SLST | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement input	0.08
Freddie Mac SLST | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement input	0.06
Freddie Mac SLST | Discount rate | Minimum
Liabilities
ABS issued, measurement input	0.02
Freddie Mac SLST | Discount rate | Maximum
Liabilities
ABS issued, measurement input	0.07
Freddie Mac SLST | Discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.03
Freddie Mac SLST | Default rate | Minimum
Liabilities
ABS issued, measurement input	0.09
Freddie Mac SLST | Default rate | Maximum
Liabilities
ABS issued, measurement input	0.10
Freddie Mac SLST | Default rate | Weighted Average
Liabilities
ABS issued, measurement input	0.09
Freddie Mac SLST | Loss severity | Minimum
Liabilities
ABS issued, measurement input	0.35
Freddie Mac SLST | Loss severity | Maximum
Liabilities
ABS issued, measurement input	0.35
Freddie Mac SLST | Loss severity | Weighted Average
Liabilities
ABS issued, measurement input	0.35
Freddie Mac K-Series
Liabilities
ABS issued | $	$ 454,324
Freddie Mac K-Series | Discount rate | Minimum
Liabilities
ABS issued, measurement input	0.01
Freddie Mac K-Series | Discount rate | Maximum
Liabilities
ABS issued, measurement input	0.09
Freddie Mac K-Series | Discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.02
CAFL
Liabilities
ABS issued | $	$ 3,007,596
CAFL | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement input	0.03
CAFL | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement input	0.03
CAFL | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement input	0.03
CAFL | Discount rate | Minimum
Liabilities
ABS issued, measurement input	0.01
CAFL | Discount rate | Maximum
Liabilities
ABS issued, measurement input	0.13
CAFL | Discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.03
CAFL | Default rate | Minimum
Liabilities
ABS issued, measurement input	0.03
CAFL | Default rate | Maximum
Liabilities
ABS issued, measurement input	0.18
CAFL | Default rate | Weighted Average
Liabilities
ABS issued, measurement input	0.09
CAFL | Loss severity | Minimum
Liabilities
ABS issued, measurement input	0.30
CAFL | Loss severity | Maximum
Liabilities
ABS issued, measurement input	0.30
CAFL | Loss severity | Weighted Average
Liabilities
ABS issued, measurement input	0.30
Single Family Rental Interest Rate Lock Commitments
Liabilities
Loan commitments | $	$ 744
Single Family Rental Interest Rate Lock Commitments | Prepayment rate (annual CPR) | Minimum
Liabilities
Loan liabilities, measurement input	0.03
Single Family Rental Interest Rate Lock Commitments | Prepayment rate (annual CPR) | Maximum
Liabilities
Loan liabilities, measurement input	0.03
Single Family Rental Interest Rate Lock Commitments | Prepayment rate (annual CPR) | Weighted Average
Liabilities
Loan liabilities, measurement input	0.03
Single Family Rental Interest Rate Lock Commitments | Senior credit spread | Minimum
Liabilities
Loan liabilities, measurement input	0.0070
Single Family Rental Interest Rate Lock Commitments | Senior credit spread | Maximum
Liabilities
Loan liabilities, measurement input	0.0070
Single Family Rental Interest Rate Lock Commitments | Senior credit spread | Weighted Average
Liabilities
Loan liabilities, measurement input	0.0070
Single Family Rental Interest Rate Lock Commitments | Subordinate credit spread | Minimum
Liabilities
Loan liabilities, measurement input	0.0105
Single Family Rental Interest Rate Lock Commitments | Subordinate credit spread | Maximum
Liabilities
Loan liabilities, measurement input	0.1531
Single Family Rental Interest Rate Lock Commitments | Subordinate credit spread | Weighted Average
Liabilities
Loan liabilities, measurement input	0.0391
Single Family Rental Interest Rate Lock Commitments | Senior credit support | Minimum
Liabilities
Loan liabilities, measurement input	0.34
Single Family Rental Interest Rate Lock Commitments | Senior credit support | Maximum
Liabilities
Loan liabilities, measurement input	0.34
Single Family Rental Interest Rate Lock Commitments | Senior credit support | Weighted Average
Liabilities
Loan liabilities, measurement input	0.34
Single Family Rental Interest Rate Lock Commitments | IO discount rate | Minimum
Liabilities
Loan liabilities, measurement input	0.10
Single Family Rental Interest Rate Lock Commitments | IO discount rate | Maximum
Liabilities
Loan liabilities, measurement input	0.11
Single Family Rental Interest Rate Lock Commitments | IO discount rate | Weighted Average
Liabilities
Loan liabilities, measurement input	0.10
Single Family Rental Interest Rate Lock Commitments | Pull-through rate | Minimum
Liabilities
Loan liabilities, measurement input	1
Single Family Rental Interest Rate Lock Commitments | Pull-through rate | Maximum
Liabilities
Loan liabilities, measurement input	1
Single Family Rental Interest Rate Lock Commitments | Pull-through rate | Weighted Average
Liabilities
Loan liabilities, measurement input	1
Jumbo fixed-rate loans
Assets
ABS issued, net, Fair value | $	$ 232,343
Jumbo fixed-rate loans | Prepayment rate (annual CPR) | Minimum
Assets
Loans held-for-sale, measurement input	0.20
Jumbo fixed-rate loans | Prepayment rate (annual CPR) | Maximum
Assets
Loans held-for-sale, measurement input	0.20
Jumbo fixed-rate loans | Prepayment rate (annual CPR) | Weighted Average
Assets
Loans held-for-sale, measurement input	0.20
Jumbo fixed-rate loans | Whole Loan Spread to TBA Price | Minimum
Assets
Loans held-for-sale, measurement input	2
Jumbo fixed-rate loans | Whole Loan Spread to TBA Price | Maximum
Assets
Loans held-for-sale, measurement input	2
Jumbo fixed-rate loans | Whole Loan Spread to TBA Price | Weighted Average
Assets
Loans held-for-sale, measurement input	2
Jumbo fixed-rate loans | Whole loan spread to swap rate | Minimum
Assets
Loans held-for-sale, measurement input	0.0215
Jumbo fixed-rate loans | Whole loan spread to swap rate | Maximum
Assets
Loans held-for-sale, measurement input	0.0215
Jumbo fixed-rate loans | Whole loan spread to swap rate | Weighted Average
Assets
Loans held-for-sale, measurement input	0.0215
Jumbo loans committed to sell
Assets
Loans receivable, fair value | $	$ 928,170
Jumbo loans committed to sell | Whole loan committed sales price | Minimum
Assets
Loans held-for-sale, measurement input	100.88
Jumbo loans committed to sell | Whole loan committed sales price | Maximum
Assets
Loans held-for-sale, measurement input	103.03
Jumbo loans committed to sell | Whole loan committed sales price | Weighted Average
Assets
Loans held-for-sale, measurement input	102.38
Legacy Sequoia
Assets
Loans receivable, fair value | $	$ 260,875
Sequoia
Assets
Loans receivable, fair value | $	2,222,553
Liabilities
Fair value of securities owned | $	235,000
Freddie Mac SLST
Assets
Loans receivable, fair value | $	2,098,624
Liabilities
Fair value of securities owned | $	450,000
Single-family rental loans
Assets
Loans receivable, fair value | $	$ 418,442
Single-family rental loans | Prepayment rate (annual CPR) | Minimum
Assets
Loans receivable, measurement input	0.03
Single-family rental loans | Prepayment rate (annual CPR) | Maximum
Assets
Loans receivable, measurement input	0.03
Single-family rental loans | Prepayment rate (annual CPR) | Weighted Average
Assets
Loans receivable, measurement input	0.03
Single-family rental loans | Senior credit spread | Minimum
Assets
Loans receivable, measurement input	0.0070
Single-family rental loans | Senior credit spread | Maximum
Assets
Loans receivable, measurement input	0.0070
Single-family rental loans | Senior credit spread | Weighted Average
Assets
Loans receivable, measurement input	0.0070
Single-family rental loans | Subordinate credit spread | Minimum
Assets
Loans receivable, measurement input	0.0105
Single-family rental loans | Subordinate credit spread | Maximum
Assets
Loans receivable, measurement input	0.1531
Single-family rental loans | Subordinate credit spread | Weighted Average
Assets
Loans receivable, measurement input	0.0391
Single-family rental loans | Senior credit support | Minimum
Assets
Loans receivable, measurement input	0.34
Single-family rental loans | Senior credit support | Maximum
Assets
Loans receivable, measurement input	0.34
Single-family rental loans | Senior credit support | Weighted Average
Assets
Loans receivable, measurement input	0.34
Single-family rental loans | IO discount rate | Minimum
Assets
Loans receivable, measurement input	0.09
Single-family rental loans | IO discount rate | Maximum
Assets
Loans receivable, measurement input	0.09
Single-family rental loans | IO discount rate | Weighted Average
Assets
Loans receivable, measurement input	0.09
Single-family rental loans | Non-securitizable loan dollar price | Minimum
Assets
Loans receivable, measurement input	82
Single-family rental loans | Non-securitizable loan dollar price | Maximum
Assets
Loans receivable, measurement input	102
Single-family rental loans | Non-securitizable loan dollar price | Weighted Average
Assets
Loans receivable, measurement input	99
CAFL
Assets
Loans receivable, fair value | $	$ 3,263,878
Liabilities
Fair value of securities owned | $	268,000
Bridge loans
Assets
Loans receivable, fair value | $	$ 726,569
Bridge loans | Discount rate | Minimum
Assets
Loans held-for-investment, measurement input	0.06
Bridge loans | Discount rate | Maximum
Assets
Loans held-for-investment, measurement input	0.15
Bridge loans | Discount rate | Weighted Average
Assets
Loans held-for-investment, measurement input	0.08
Freddie Mac K-Series
Assets
Loans receivable, fair value | $	$ 485,157
Liabilities
Fair value of securities owned | $	31,000
Trading and AFS securities
Assets
Trading and AFS securities | $	$ 354,886
Trading and AFS securities | Prepayment rate (annual CPR) | Minimum
Assets
Trading and AFS securities	0.08
Trading and AFS securities | Prepayment rate (annual CPR) | Maximum
Assets
Trading and AFS securities	0.62
Trading and AFS securities | Prepayment rate (annual CPR) | Weighted Average
Assets
Trading and AFS securities	0.28
Trading and AFS securities | Discount rate | Minimum
Assets
Trading and AFS securities	0.02
Trading and AFS securities | Discount rate | Maximum
Assets
Trading and AFS securities	0.31
Trading and AFS securities | Discount rate | Weighted Average
Assets
Trading and AFS securities	0.07
Trading and AFS securities | Default rate | Minimum
Assets
Trading and AFS securities	0
Trading and AFS securities | Default rate | Maximum
Assets
Trading and AFS securities	0.25
Trading and AFS securities | Default rate | Weighted Average
Assets
Trading and AFS securities	0.04
Trading and AFS securities | Loss severity | Minimum
Assets
Trading and AFS securities	0
Trading and AFS securities | Loss severity | Maximum
Assets
Trading and AFS securities	0.50
Trading and AFS securities | Loss severity | Weighted Average
Assets
Trading and AFS securities	0.22
Trading and AFS securities | Measurement Input, CRT Dollar Price | Minimum
Assets
Trading and AFS securities	95
Trading and AFS securities | Measurement Input, CRT Dollar Price | Maximum
Assets
Trading and AFS securities	113
Trading and AFS securities | Measurement Input, CRT Dollar Price | Weighted Average
Assets
Trading and AFS securities	102
Servicer Advance Investments
Assets
Servicing asset | $	$ 184,551
Servicer Advance Investments | Minimum
Assets
Expected remaining life	4 years
Servicer Advance Investments | Maximum
Assets
Expected remaining life	4 years
Servicer Advance Investments | Weighted Average
Assets
Expected remaining life	4 years
Servicer Advance Investments | Prepayment rate (annual CPR) | Minimum
Assets
Servicing asset, measurement input	0.20
Servicer Advance Investments | Prepayment rate (annual CPR) | Maximum
Assets
Servicing asset, measurement input	0.30
Servicer Advance Investments | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing asset, measurement input	0.21
Servicer Advance Investments | Discount rate | Minimum
Assets
Servicing asset, measurement input	0.03
Servicer Advance Investments | Discount rate | Maximum
Assets
Servicing asset, measurement input	0.03
Servicer Advance Investments | Discount rate | Weighted Average
Assets
Servicing asset, measurement input	0.03
Residential loan purchase commitments, net
Liabilities
Loan purchase commitments, net | $	$ 12,725
Residential loan purchase commitments, net | Prepayment rate (annual CPR) | Minimum
Assets
Loans receivable, measurement input	0.20
Residential loan purchase commitments, net | Prepayment rate (annual CPR) | Maximum
Assets
Loans receivable, measurement input	0.20
Residential loan purchase commitments, net | Prepayment rate (annual CPR) | Weighted Average
Assets
Loans receivable, measurement input	0.20
Residential loan purchase commitments, net | Whole Loan Spread to TBA Price | Minimum
Assets
Loans receivable, measurement input	2
Residential loan purchase commitments, net | Whole Loan Spread to TBA Price | Maximum
Assets
Loans receivable, measurement input	2
Residential loan purchase commitments, net | Whole Loan Spread to TBA Price | Weighted Average
Assets
Loans receivable, measurement input	2
Residential loan purchase commitments, net | Whole loan spread to swap rate | Minimum
Assets
Loans receivable, measurement input	0.0191
Residential loan purchase commitments, net | Whole loan spread to swap rate | Maximum
Assets
Loans receivable, measurement input	0.0215
Residential loan purchase commitments, net | Whole loan spread to swap rate | Weighted Average
Assets
Loans receivable, measurement input	0.0201
Residential loan purchase commitments, net | Mortgage servicing income | Minimum
Assets
Servicing asset, measurement input	0
Residential loan purchase commitments, net | Mortgage servicing income | Maximum
Assets
Servicing asset, measurement input	0.0015
Residential loan purchase commitments, net | Mortgage servicing income | Weighted Average
Assets
Servicing asset, measurement input	0.0009
Residential loan purchase commitments, net | Committed sales price | Minimum
Liabilities
Loan liabilities, measurement input	102
Residential loan purchase commitments, net | Committed sales price | Maximum
Liabilities
Loan liabilities, measurement input	103.03
Residential loan purchase commitments, net | Committed sales price | Weighted Average
Liabilities
Loan liabilities, measurement input	102.64
Residential loan purchase commitments, net | Pull-through rate | Minimum
Liabilities
Loan liabilities, measurement input	0.21
Residential loan purchase commitments, net | Pull-through rate | Maximum
Liabilities
Loan liabilities, measurement input	1
Residential loan purchase commitments, net | Pull-through rate | Weighted Average
Liabilities
Loan liabilities, measurement input	0.72
MSRs
Assets
Servicing asset | $	$ 8,721
MSRs | Prepayment rate (annual CPR) | Minimum
Assets
Servicing asset, measurement input	0.07
MSRs | Prepayment rate (annual CPR) | Maximum
Assets
Servicing asset, measurement input	0.84
MSRs | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing asset, measurement input	0.36
MSRs | Discount rate | Minimum
Assets
Servicing asset, measurement input	0.12
MSRs | Discount rate | Maximum
Assets
Servicing asset, measurement input	0.12
MSRs | Discount rate | Weighted Average
Assets
Servicing asset, measurement input	0.12
MSRs | Per loan annual cost to service | Minimum
Assets
Servicing asset, measurement input	96
MSRs | Per loan annual cost to service | Maximum
Assets
Servicing asset, measurement input	96
MSRs | Per loan annual cost to service | Weighted Average
Assets
Servicing asset, measurement input	96
Excess MSRs
Assets
Servicing asset | $	$ 29,988
Excess MSRs | Prepayment rate (annual CPR) | Minimum
Assets
Servicing asset, measurement input	0.21
Excess MSRs | Prepayment rate (annual CPR) | Maximum
Assets
Servicing asset, measurement input	0.30
Excess MSRs | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing asset, measurement input	0.24
Excess MSRs | Discount rate | Minimum
Assets
Servicing asset, measurement input	0.13
Excess MSRs | Discount rate | Maximum
Assets
Servicing asset, measurement input	0.16
Excess MSRs | Discount rate | Weighted Average
Assets
Servicing asset, measurement input	0.15
Excess MSRs | Excess mortgage servicing income | Minimum
Assets
Servicing asset, measurement input	0.0008
Excess MSRs | Excess mortgage servicing income | Maximum
Assets
Servicing asset, measurement input	0.0017
Excess MSRs | Excess mortgage servicing income | Weighted Average
Assets
Servicing asset, measurement input	0.0011
Shared home appreciation options
Assets
Shared home appreciation options | $	$ 44,319
Shared home appreciation options | Prepayment rate (annual CPR) | Minimum
Assets
Shared home appreciation options			0.16
Shared home appreciation options | Prepayment rate (annual CPR) | Maximum
Assets
Shared home appreciation options			0.24
Shared home appreciation options | Prepayment rate (annual CPR) | Weighted Average
Assets
Shared home appreciation options			0.17
Shared home appreciation options | Discount rate | Minimum
Assets
Shared home appreciation options	0.13
Shared home appreciation options | Discount rate | Maximum
Assets
Shared home appreciation options	0.13
Shared home appreciation options | Discount rate | Weighted Average
Assets
Shared home appreciation options	0.13
Shared home appreciation options | Home price appreciation | Minimum
Assets
Shared home appreciation options			0.03
Shared home appreciation options | Home price appreciation | Maximum
Assets
Shared home appreciation options			0.04
Shared home appreciation options | Home price appreciation | Weighted Average
Assets
Shared home appreciation options			0.03
REO
Assets
REO | $	$ 1,233
REO | Loss severity | Minimum
Assets
REO, measurement input	0.04
REO | Loss severity | Maximum
Assets
REO, measurement input	0.40
REO | Loss severity | Weighted Average
Assets
REO, measurement input	0.23

Residential Loans - Summary of

Residential Loans - Summary of Classifications and Carrying Value of Residential Loans (Details) - USD ($) $ in Thousands		Jun. 30, 2021	Dec. 31, 2020
Held-for-sale at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans	[1]	$ 1,160,548	$ 176,641
Held-for-investment at fair value | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		260,875	285,935
Held-for-investment at fair value | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		2,222,553	1,565,322
Held-for-investment at fair value | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		2,098,624	2,221,153
Residential Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		5,742,600	4,249,051
Residential Loans | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		260,875	285,935
Residential Loans | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		2,222,553	1,565,322
Residential Loans | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		2,098,624	2,221,153
Residential Loans | Held-for-sale at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		1,160,548	176,641
Residential Loans | Held-for-sale at fair value | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		0	0
Residential Loans | Held-for-sale at fair value | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		0	0
Residential Loans | Held-for-sale at fair value | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		0	0
Residential Loans | Held-for-investment at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		4,582,052	4,072,410
Residential Loans | Held-for-investment at fair value | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		260,875	285,935
Residential Loans | Held-for-investment at fair value | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		2,222,553	1,565,322
Residential Loans | Held-for-investment at fair value | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		2,098,624	2,221,153
Residential Loans | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		1,160,548	176,641
Residential Loans | Redwood | Held-for-sale at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		1,160,548	176,641
Residential Loans | Redwood | Held-for-investment at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		$ 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 June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, respectively. See Note 4 for further discussion.

Residential Loans - Additional

Residential Loans - Additional Information (Details) $ in Millions	Jun. 30, 2021USD ($)
MSRs
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Mortgage servicing rights, at amortized cost	$ 1,100

Residential Loans - Characteris

Residential Loans - Characteristics of Residential Loans Held-for-Sale (Details) - Residential Loans $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021USD ($)loan	Dec. 31, 2020USD ($)loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	1,316	198
Unpaid principal balance	$ 1,135,356	$ 172,748
Fair value of loans	1,160,548	176,641
Market value of loans pledged as collateral under short-term borrowing agreements	$ 1,152,267	$ 156,355
Number of loans in foreclosure | loan	0	0
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]
Fair value of loans	$ 2,100	$ 1,882
Number of loans with 90+ day delinquencies | loan	2	1
Fair value of loans with 90+ day delinquencies	$ 1,397	$ 1,223

Residential Loans - Quarterly A

Residential Loans - Quarterly Activity of Residential Loans Held-for-Sale (Details) - Residential Loans - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal balance of loans acquired	$ 3,484,633	$ 57,743	$ 6,580,681	$ 2,687,651
Principal balance of loans sold	3,324,919	2,280,076	5,600,751	4,936,795
Net market valuation gains (losses) recorded	$ 26,278	$ (2,014)	$ 49,707	$ (15,494)

Residential Loans - Character_2

Residential Loans - Characteristics of Loans Held-for-Investment (Details) - Held-for-investment at fair value $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2021USD ($)loan	Dec. 31, 2020USD ($)loan
Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	1,733	1,908
Unpaid principal balance	$ 295,368	$ 333,474
Fair value of loans	$ 260,875	$ 285,935
Number of loans in foreclosure | loan	18	21
Unpaid principal balance of loans in foreclosure	$ 3,830	$ 4,939
Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	2,775	2,177
Unpaid principal balance	$ 2,193,269	$ 1,550,454
Fair value of loans	$ 2,222,553	$ 1,565,322
Number of loans in foreclosure | loan	3	3
Unpaid principal balance of loans in foreclosure	$ 2,257	$ 2,251
Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	12,902	13,605
Unpaid principal balance	$ 2,107,256	$ 2,247,771
Fair value of loans	$ 2,098,624	$ 2,221,153
Number of loans in foreclosure | loan	308	245
Unpaid principal balance of loans in foreclosure	$ 51,191	$ 38,610
Financing Receivables, Equal to Greater than 90 Days Past Due | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans with 90+ day delinquencies | loan	43	52
Fair value of loans with 90+ day delinquencies	$ 14,878	$ 17,285
Financing Receivables, Equal to Greater than 90 Days Past Due | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans with 90+ day delinquencies | loan	48	94
Fair value of loans with 90+ day delinquencies	$ 38,502	$ 74,742
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 with 90+ day delinquencies | loan	1,446	2,110
Fair value of loans with 90+ day delinquencies	$ 261,504	$ 389,245

Residential Loans - Quarterly_2

Residential Loans - Quarterly Activity of Residential Loans Held-for-Investment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
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			$ 1,998,535	$ 706,775
Held-for-investment at fair value | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Net market valuation gain (loss)	$ (12,835)	$ 93,932	(15,413)	(16,553)
Held-for-investment at fair value | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Net market valuation gain (loss)	22,579	48,587	19,014	(144,433)
Held-for-investment at fair value | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Net market valuation gain (loss)	4,863	8,081	12,476	(60,933)
Held-for-investment at fair value | Sequoia
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	1,205,494	270,506	1,205,494	270,506
Held-for-investment at fair value | Redwood
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	0	0	0	13,258
Transfers from loans held-for-investment to loans held-for-sale	0	0	0	1,870,986
Net market valuation gains (losses) recorded	$ 0	$ 104	$ 0	$ (93,532)

Business Purpose Loans - Classi

Business Purpose Loans - Classifications and Carrying Values of Business Purpose Residential Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Residential Bridge, Held-for-sale at fair value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	$ 0	$ 0
Bridge loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	726,569	641,765
Residential bridge loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	726,569	641,765
Held-for-sale at fair value, Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	418,442	245,394
Held-for-investment at fair value, Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	3,990,447	3,890,959
Business Purpose Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	4,408,889	4,136,353
Redwood | Single-family rental loans, held-for-sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	418,442	245,394
Redwood | Single Family Rental Loans Held For Investment At Fair Value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	0	0
Redwood | Single family rental loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	418,442	245,394
CoreVest | Single-family rental loans, held-for-sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	0	0
CoreVest | Single Family Rental Loans Held For Investment At Fair Value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	3,263,878	3,249,194
CoreVest | Single family rental loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	$ 3,263,878	$ 3,249,194

Business Purpose Loans - Activi

Business Purpose Loans - Activity and Characteristics of Business Purpose Loans (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021USD ($)loan	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)loan	Jun. 30, 2020USD ($)	Dec. 31, 2020USD ($)loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Purchases of held-for-sale loans			$ 6,682,864	$ 2,720,245
Principal balance of loans sold to third parties			29,786	16,405
Transfers from loans held-for-sale to loans held-for-investment			1,998,535	706,775
Transfers from loans held-for-investment to loans held-for-sale			$ 44,922	0
Adjustable rate (as a percent)			63.00%
Fixed rate (as a percent)			37.00%
Number of loans transferred | loan			4
Transfers from residential loans to real estate owned			$ 15,827	9,645
Amount related to transfers into REO			15,826
CAFL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Amount related to transfers into REO			$ 11,924
Number of loans | loan			2
Commitment To Fund Residential Bridge Loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Commitment to fund loan	$ 374,000		$ 374,000
Single-family rental loans, held-for-sale | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Purchases of held-for-sale loans	312,217	$ 175,876	565,315	436,005
Principal balance of loans sold to third parties	0	0	0	26,148
Transfers from loans held-for-sale to loans held-for-investment	297,301	220,923	466,705	599,032
Transfers from loans held-for-investment to loans held-for-sale	44,922	0	44,922	0
Gain (loss) on investments	0	2,222	0	(20,806)
Fair value of loans	418,442		418,442		$ 245,394
Single-family rental loans, held-for-sale | Redwood | Business Purpose Mortgage Banking Activities, Net:
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	25,222	1,210	35,470	11,540
Single Family Rental Loans Held For Investment At Fair Value | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans	0		0		$ 0
Single Family Rental Loans Held For Investment At Fair Value | CAFL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	$ (1,230)	169,327	(62,132)	(102,590)
Number of loans | loan	1,121				1,094
Unpaid principal balance	$ 3,060,949		3,060,949		$ 3,017,137
Fair value of loans	$ 3,263,878		$ 3,263,878		$ 3,249,194
Weighted average coupon rate	5.34%		5.34%		5.44%
Contract maturities	5 years				5 years
Fair value of loans with 90+ day delinquencies	$ 24,212		$ 24,212		$ 24,745
Number of loans in foreclosure | loan	10		10		10
Single Family Rental Loans Held For Investment At Fair Value | CAFL | 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 with 90+ day delinquencies | loan	21		21		22
Fair value of loans with 90+ day delinquencies	$ 59,841		$ 59,841		$ 61,440
Bridge loans held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Purchases of held-for-sale loans	215,160	58,468	348,389	285,836
Principal balance of loans sold to third parties	354	1,558	9,231	22,293
Transfers from loans held-for-investment to loans held-for-sale	0	0	0	0
Gain (loss) on investments	(62)	21,774	3,242	(16,828)
Transfers from residential loans to real estate owned			2,000
Fair value of loans	726,569		$ 726,569		641,765
Bridge loans held-for-investment | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Residential bridge loans held-for-investment, original maturities (in months)			6 months
Bridge loans held-for-investment | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Residential bridge loans held-for-investment, original maturities (in months)			24 months
Bridge loans held-for-investment | Business Purpose Mortgage Banking Activities, Net:
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	978	(3,277)	$ 1,521	(3,441)
Business Purpose Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fee income	7,000	$ 2,000	13,000	$ 11,000
Fair value of loans	$ 4,408,889		4,408,889		$ 4,136,353
Single-Family Rental Loans, Held-For-Sale | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	112				65
Unpaid principal balance	$ 399,900		399,900		$ 234,475
Fair value of loans	$ 418,442		$ 418,442		$ 245,394
Weighted average coupon rate	4.84%		4.84%		4.84%
Contract maturities	7 years				8 years
Fair value of loans with 90+ day delinquencies	$ 5,976		$ 5,976		$ 0
Number of loans in foreclosure | loan	7		7		0
Unpaid principal balance of loans in foreclosure	$ 4,798		$ 4,798		$ 0
Single-Family Rental Loans, Held-For-Sale | Redwood | Loans Pledged As Collateral, Short Term Debt
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	122,277				34,098
Single-Family Rental Loans, Held-For-Sale | Redwood | Loans Pledged As Collateral, Long Term debt
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	246,903				154,774
Single-Family Rental Loans, Held-For-Sale | Redwood | 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]
Fair value of loans	$ 5,369		$ 5,369		$ 6,143
Number of loans with 90+ day delinquencies | loan	9		9		10
Fair value of loans with 90+ day delinquencies	$ 6,586		$ 6,586		$ 7,127
Business Purpose Bridge Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	2,471				1,725
Unpaid principal balance	$ 729,149		729,149		$ 649,532
Fair value of loans	$ 726,569		$ 726,569		$ 641,765
Weighted average coupon rate	7.63%		7.63%		8.09%
Contract maturities	1 year				1 year
Fair value of loans with 90+ day delinquencies	$ 32,611		$ 32,611		$ 38,552
Number of loans in foreclosure | loan	43		43		25
Unpaid principal balance of loans in foreclosure	$ 28,963		$ 28,963		$ 33,066
Business Purpose Bridge Loans | Loans Pledged As Collateral, Short Term Debt
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	127,133				92,931
Business Purpose Bridge Loans | Loans Pledged As Collateral, Long Term debt
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	555,791				544,151
Business Purpose Bridge 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]
Fair value of loans	$ 31,512		$ 31,512		$ 33,605
Number of loans with 90+ day delinquencies | loan	40		40		31
Fair value of loans with 90+ day delinquencies	$ 35,018		$ 35,018		$ 39,415

Multifamily Loans (Details)

Multifamily Loans (Details) - Multifamily loans, held-for-investment, at fair value $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021USD ($)loan	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)loan	Jun. 30, 2020USD ($)	Dec. 31, 2020USD ($)loan
Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	28				28
Loan principal | $	$ 459,002		$ 459,002		$ 462,808
Fair value of loans | $	$ 485,157		$ 485,157		$ 492,221
Weighted average coupon rate	4.25%		4.25%		4.25%
Contract maturities	4 years				5 years
Number of loans in foreclosure | loan	0		0		0
Redwood | 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 with 90+ day delinquencies | loan	0		0		0
Held-for-investment at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Net market valuation gain (loss) | $	$ (2,528)	$ 18,591	$ (3,258)	$ (63,840)

Real Estate Securities - Fair V

Real Estate Securities - Fair Values of Real Estate Securities (Details) - USD ($) $ in Thousands		Jun. 30, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Trading		$ 142,425	$ 125,667
Available-for-sale		212,461	218,458
Total Real Estate Securities	[1]	$ 354,886	$ 344,125
[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 June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, respectively. See Note 4 for further discussion.

Real Estate Securities - Tradin

Real Estate Securities - Trading Securities by Collateral Type (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Investment Holdings [Line Items]
Real estate securities	$ 142,425		$ 142,425		$ 125,667
Unpaid principal balance	208,381		208,381		245,855
Principal balance of securities acquired	1,750	$ 10,250	17,630	$ 66,721
Principal balance of securities sold	18,068	85,747	52,811	704,614
Net market valuation gains (losses) recorded	1,798	$ 42,246	23,147	$ (221,079)
Senior IO Securities
Investment Holdings [Line Items]
Real estate securities	25,267		25,267		28,464
Unpaid principal balance	0		0		0
Mezzanine
Investment Holdings [Line Items]
Real estate securities	0		0		3,649
Unpaid principal balance	0		0		3,577
Subordinate
Investment Holdings [Line Items]
Real estate securities	117,158		117,158		93,554
Unpaid principal balance	208,381		208,381		242,278
Interest Only Senior Trading Securities | Senior IO Securities
Investment Holdings [Line Items]
Real estate securities	25,267		25,267		28,464
Interest Only Senior Trading Securities | Senior IO Securities | Sequoia
Investment Holdings [Line Items]
Real estate securities	17,000		17,000		13,000
Sequoia securities | Mezzanine
Investment Holdings [Line Items]
Real estate securities	0		0		3,649
RPL securities | Subordinate
Investment Holdings [Line Items]
Real estate securities	60,887		60,887		47,448
Multifamily loans, held-for-investment, at fair value | Subordinate
Investment Holdings [Line Items]
Real estate securities	8,266		8,266		5,592
Other third-party residential securities | Subordinate
Investment Holdings [Line Items]
Real estate securities	$ 48,005		$ 48,005		$ 40,514

Real Estate Securities - Availa

Real Estate Securities - Available for Sale Securities by Collateral Type (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Investment Holdings [Line Items]
Available-for-sale	$ 212,461		$ 212,461		$ 218,458
Fair value of securities acquired	522	$ 0	1,600	$ 31,181
Fair value of securities sold	2,585	8,736	4,785	55,193
Net realized gains recorded	1,307	$ 783	1,507	$ 4,635
Mezzanine
Investment Holdings [Line Items]
Available-for-sale	0		0		2,014
Subordinate
Investment Holdings [Line Items]
Available-for-sale	212,461		212,461		216,444
Other third-party residential securities | Mezzanine
Investment Holdings [Line Items]
Available-for-sale	0		0		2,014
Other third-party residential securities | Subordinate
Investment Holdings [Line Items]
Available-for-sale	37,927		37,927		36,306
Sequoia securities | Subordinate
Investment Holdings [Line Items]
Available-for-sale	140,321		140,321		136,475
Multifamily loans, held-for-investment, at fair value | Subordinate
Investment Holdings [Line Items]
Available-for-sale	$ 34,213		$ 34,213		$ 43,663

Real Estate Securities - Additi

Real Estate Securities - Additional Information (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2021USD ($)entityinvestment	Jun. 30, 2021USD ($)investmententity	Mar. 31, 2021USD ($)	Dec. 31, 2020USD ($)investment
Investment Holdings [Line Items]
Number of AFS securities (in investments) | investment	88	88		96
Number of securities in unrealized loss position | investment	2	2		5
Number of securities in a continuous unrealized loss position for twelve consecutive months or longer (in investments) | investment				0
Gross unrealized losses	$ 79	$ 79		$ 1,047
CECL credit allowance	$ 0	$ 0	$ 13	388
Variable Interest Entity, Not Primary Beneficiary
Investment Holdings [Line Items]
Number of entities called | entity	3	4
Unpaid principal balance of loans purchased	$ 83,000	$ 101,000
Gain related to called security	7,000	9,000
Residential
Investment Holdings [Line Items]
AFS securities, contractual maturities, less than five years	31,000	31,000
Marketable securities, due from five to ten years	4,000	4,000
CECL credit allowance	$ 40,349	$ 40,349	$ 44,947	$ 44,967

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	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Principal balance	$ 254,784		$ 283,284
Credit reserve	(40,349)		(44,967)
Unamortized discount, net	(90,216)		(95,718)
Amortized cost	124,219		142,599
Gross unrealized gains	88,321		77,294
Gross unrealized losses	(79)		(1,047)
CECL allowance	0	$ (13)	(388)
Carrying Value	212,461		218,458
Mezzanine
Debt Securities, Available-for-sale [Line Items]
Principal balance	0		2,000
Credit reserve	0		0
Unamortized discount, net	0		0
Amortized cost	0		2,000
Gross unrealized gains	0		14
Gross unrealized losses	0		0
CECL allowance	0		0
Carrying Value	0		2,014
Subordinate
Debt Securities, Available-for-sale [Line Items]
Principal balance	254,784		281,284
Credit reserve	(40,349)		(44,967)
Unamortized discount, net	(90,216)		(95,718)
Amortized cost	124,219		140,599
Gross unrealized gains	88,321		77,280
Gross unrealized losses	(79)		(1,047)
CECL allowance	0		(388)
Carrying Value	$ 212,461		$ 216,444

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	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Credit Reserve
Beginning balance	$ 13	$ 388
Sales, calls, other	0	0
Ending Balance	0	0
Unamortized Discount, Net
Beginning balance		95,718
Ending Balance	90,216	90,216
Residential
Credit Reserve
Beginning balance	44,947	44,967
Amortization of net discount	0	0
Realized credit losses	(112)	(249)
Acquisitions	890	2,825
Sales, calls, other	(718)	(992)
Transfers to (release of) credit reserves, net	(4,658)	(6,202)
Ending Balance	40,349	40,349
Unamortized Discount, Net
Beginning balance	94,188	95,718
Amortization of net discount	(1,569)	(3,183)
Realized credit losses	0	0
Acquisitions	368	1,208
Sales, calls, other	(7,429)	(9,729)
Transfers to (release of) credit reserves, net	4,658	6,202
Ending Balance	$ 90,216	$ 90,216

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	Jun. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Less Than 12 Consecutive Months, Amortized Cost	$ 0	$ 9,129
Less Than 12 Consecutive Months, Unrealized Losses	0	(1,047)
Less Than 12 Consecutive Months, Fair Value	0	7,920
12 Consecutive Months or Longer, Amortized Cost	3,600	0
12 Consecutive Months or Longer, Unrealized Losses	(79)	0
12 Consecutive Months or Longer, Fair Value	$ 3,521	$ 0

Real Estate Securities - Summar

Real Estate Securities - Summary of Significant Valuation Assumptions for Available for Sale Securities Credit Loss (Details) - Subordinate Securities	6 Months Ended
	Jun. 30, 2021
Debt Securities, Available-for-sale [Line Items]
Default rate	0.35%
Loss severity	18.00%

Real Estate Securities - Activi

Real Estate Securities - Activity of Allowance for Credit Losses for Available-for-sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Rollforward of Allowance for Credit Losses
Beginning balance	$ 13	$ 388
Additions to allowance for credit losses on securities for which credit losses were not previously recorded	0	0
Additional increases (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	(13)	(388)
Allowance on purchased financial assets with credit deterioration	0	0
Reduction to allowance for securities sold during the period	0	0
Reduction to allowance for securities we intend to sell or more likely than not will be required to sell	0	0
Write-offs charged against allowance	0	0
Recoveries of amounts previously written off	0	0
Ending Balance	$ 0	$ 0

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	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	$ 1,307	$ 783	$ 1,507	$ 4,635
Total Realized Gains on Sales and Calls of AFS Securities, net	7,994	783	10,602	4,635
Sales
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	1,307	1,074	1,507	8,779
Gross realized losses - sales	0	(291)	0	(4,144)
Calls
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	$ 6,687	$ 0	$ 9,095	$ 0

Other Investments - Summary of

Other Investments - Summary of Other Investments (Details) - USD ($) $ in Thousands		Jun. 30, 2021	Dec. 31, 2020
Net Investment Income [Line Items]
Servicing asset, fair value		$ 171,818	$ 217,656
Other Investments	[1]	308,732	348,175
Residential Loans
Net Investment Income [Line Items]
Servicing asset, fair value		184,551	231,489
Excess MSRs
Net Investment Income [Line Items]
Servicing asset, fair value		29,988	34,418
Shared home appreciation options
Net Investment Income [Line Items]
Loans held for investment			42,440
Mortgage servicing rights
Net Investment Income [Line Items]
Servicing asset, fair value		8,721	8,815
Other
Net Investment Income [Line Items]
Loans held for investment		$ 41,153	$ 31,013
[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 June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, respectively. See Note 4 for further discussion.

Other Investments - Additional

Other Investments - Additional Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)partnership	Jun. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Net Investment Income [Line Items]
Number of partnerships consolidated | partnership			2
Commitment to fund partnership			$ 94,000
Servicing asset, fair value	$ 171,818		171,818		$ 217,656
Collateral amounts	1,171,811		1,171,811		1,084,929
Investment fair value changes, net	49,480	$ 152,228	94,567	$ (718,604)
Interest income	138,695	129,946	267,000	328,027
Mortgage Servicing Rights Retained	2,000		2,000
Servicer advance financing
Net Investment Income [Line Items]
Collateral amounts	172,000		172,000
Equity investment income	2,000		5,000
Investment fair value changes, net	(1,000)	(100)	(1,000)	(6,000)
Servicer advance financing | Other Interest Income
Net Investment Income [Line Items]
Investment fair value changes, net		3,000		6,000
Held-for-sale residential loans
Net Investment Income [Line Items]
Servicing asset, fair value	184,551		184,551		231,489
Servicing asset, unpaid principal balance on underlying loan	8,030,000		8,030,000
Excess MSRs
Net Investment Income [Line Items]
Servicing asset, fair value	29,988		29,988		34,418
Investment fair value changes, net	(2,000)	3,000	(4,000)	(7,000)
Interest income	3,000	3,000	6,000	6,000
Shared home appreciation options
Net Investment Income [Line Items]
Payments to acquire investments	47,000
Shared home appreciation options | Commitment To Fund Investment
Net Investment Income [Line Items]
Investment fair value changes, net	2,000	1,000	7,000	(7,000)
MSRs
Net Investment Income [Line Items]
Servicing asset, fair value	8,721		8,721		8,815
Aggregate principal balance	$ 1,970,000		1,970,000		$ 2,590,000
MSR income (losses), net		$ (1,000)	$ 1,000	$ (3,000)

Other Investments - Servicing A

Other Investments - Servicing Advance Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Schedule of Investments [Line Items]
Total Servicer Advance Receivables	$ 171,818	$ 217,656
Servicer advance financing
Schedule of Investments [Line Items]
Principal and interest advances	80,741	110,923
Escrow advances (taxes and insurance advances)	68,534	79,279
Corporate advances	$ 22,543	$ 27,454

Derivative Financial Instrume_3

Derivative Financial Instruments - Aggregate Fair Value and Notional Amount of Derivative Financial Instruments (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Derivative [Line Items]
Fair Value	$ 31,065,000	$ 37,166,000
Notional Amount	6,499,482,000	11,346,407,000
TBAs
Derivative [Line Items]
Notional Amount	1,460,000,000	6,630,000,000
Interest rate futures
Derivative [Line Items]
Notional Amount	222,000,000
Derivative Liabilities
Derivative [Line Items]
Fair Value	(3,240,000)	(16,072,000)
Notional Amount	1,122,471,000	3,582,153,000
Derivative Liabilities | Interest rate swaps
Derivative [Line Items]
Fair Value	(957,000)	0
Notional Amount	87,500,000	0
Derivative Liabilities | TBAs
Derivative [Line Items]
Fair Value	(1,367,000)	(15,495,000)
Notional Amount	730,000,000	3,105,000,000
Derivative Liabilities | Interest rate futures
Derivative [Line Items]
Fair Value	(194,000)	0
Notional Amount	140,000,000	0
Derivative Liabilities | Residential loan purchase commitments, net
Derivative [Line Items]
Fair Value	(722,000)	(577,000)
Notional Amount	164,971,000	477,153,000
Derivative Assets
Derivative [Line Items]
Fair Value	34,305,000	53,238,000
Notional Amount	5,377,011,000	7,764,254,000
Derivative Assets | Interest rate swaps
Derivative [Line Items]
Fair Value	264,000	224,000
Notional Amount	133,000,000	42,000,000
Derivative Assets | TBAs
Derivative [Line Items]
Fair Value	2,064,000	18,260,000
Notional Amount	730,000,000	3,520,000,000
Derivative Assets | Interest rate futures
Derivative [Line Items]
Fair Value	304,000	0
Notional Amount	81,500,000	0
Derivative Assets | Swaptions
Derivative [Line Items]
Fair Value	17,482,000	19,727,000
Notional Amount	2,100,000,000	1,585,000,000
Derivative Assets | Residential loan purchase commitments, net
Derivative [Line Items]
Fair Value	14,191,000	15,027,000
Notional Amount	$ 2,332,511,000	$ 2,617,254,000

Derivative Financial Instrume_4

Derivative Financial Instruments - Additional Information (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Notional amount	$ 6,499,482,000			$ 6,499,482,000			$ 11,346,407,000
Accumulated other comprehensive income (loss)	1,295,142,000	$ 936,576,000	$ 725,202,000	1,295,142,000	$ 936,576,000	$ 1,215,575,000	1,110,899,000	$ 1,827,231,000
Interest Rate Agreements Accounted for as Cash Flow Hedges
Derivative [Line Items]
Accumulated other comprehensive income (loss)	(78,511,000)	(82,637,000)	(83,666,000)	(78,511,000)	(82,637,000)	$ (79,539,000)	(80,557,000)	$ (50,939,000)
Interest Expense
Derivative [Line Items]
Cash flow hedge gain (loss) to be reclassified over the next 12 months				(4,000,000)
Mortgage Banking Activities, Net
Derivative [Line Items]
Market valuations gains (losses), net	45,759,000	(1,443,000)		121,321,000	(38,446,000)
Loan purchase commitments and forward sales commitments | Mortgage Banking Activities, Net
Derivative [Line Items]
Market valuations gains (losses), net	53,000,000	1,000,000		300,000	22,000,000
Interest rate contract
Derivative [Line Items]
Notional amount	2,320,000,000			2,320,000,000			1,630,000,000
TBAs
Derivative [Line Items]
Notional amount	1,460,000,000			1,460,000,000			$ 6,630,000,000
Interest rate futures
Derivative [Line Items]
Notional amount	222,000,000			222,000,000
Unsecuritized Residential and Commercial Loans
Derivative [Line Items]
Derivative gain (loss)	(58,000,000)	0		35,000,000	(98,000,000)
Interest rate swaps | Cash Flow Hedging
Derivative [Line Items]
Derivative gain (loss)	$ 0	$ 0		$ 0	$ (33,000,000)
Derivative, cost of hedge			$ 84,000,000

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		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivative [Line Items]
Total interest expense	$ (108,065)	$ (102,666)	$ (210,617)	$ (249,337)
Cash Flow Hedging | Interest rate contract
Derivative [Line Items]
Net interest expense on cash flows hedges	0	0	0	(860)
Realized net losses reclassified from other comprehensive income	(1,028)	(1,029)	(2,046)	(1,108)
Total interest expense	$ (1,028)	$ (1,029)	$ (2,046)	$ (1,968)

Other Assets and Liabilities -

Other Assets and Liabilities - Components of Other Assets (Details) - USD ($) $ in Thousands		Jun. 30, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Accrued interest receivable		$ 41,366	$ 39,445
Investment receivable		38,281	43,176
REO		15,489	8,413
Operating lease right-of-use assets		14,370	15,012
Margin receivable		10,269	4,758
Fixed assets and leasehold improvements		7,202	4,203
Pledged collateral		0	1,177
Other		9,455	14,404
Total Other Assets	[1]	136,432	$ 130,588
Fixed assets		14,000
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 June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, 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		Jun. 30, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Accrued compensation		$ 42,737	$ 24,393
Accrued interest payable		35,615	34,858
Margin payable		19,503	14,728
Operating lease liabilities		15,997	16,687
Payable to minority partner		15,414	16,941
Unsettled trades		13,952	0
Residential loan and MSR repurchase reserve		8,709	8,631
Guarantee obligations		8,446	10,039
Accrued income taxes payable		5,395	5,614
Bridge loan holdbacks		5,394	5,708
Accrued operating expenses		4,938	5,509
Deferred consideration		0	14,579
Other		15,605	21,653
Total Accrued Expenses and Other Liabilities	[1]	$ 191,705	$ 179,340
[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 June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, respectively. See Note 4 for further discussion.

Other Assets and Liabilities _3

Other Assets and Liabilities - REO Information (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2021USD ($)shares	Jun. 30, 2021USD ($)asset	Dec. 31, 2020asset
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 8,413	$ 8,413
Amount related to transfers into REO		15,826
Liquidations		(8,726)
Unrealized gain (loss) resulting from market valuation adjustments on REO		(24)
Balance at End of Period		$ 15,489
Number of REO properties recorded on balance sheet | asset		26	17
5 Arches
Other Assets and Other Liabilities [Line Items]
Shares issued for settlement of remaining deferred consideration | shares	806,068
Cash payment for contingent consideration liability	$ 1,000
Legacy Sequoia
Other Real Estate [Roll Forward]
Balance at beginning of period	638	$ 638
Amount related to transfers into REO		65
Liquidations		(39)
Unrealized gain (loss) resulting from market valuation adjustments on REO		(5)
Balance at End of Period		$ 659
Number of REO properties recorded on balance sheet | asset		3	3
Freddie Mac SLST
Other Real Estate [Roll Forward]
Balance at beginning of period	646	$ 646
Amount related to transfers into REO		1,548
Liquidations		(766)
Unrealized gain (loss) resulting from market valuation adjustments on REO		208
Balance at End of Period		$ 1,636
Number of REO properties recorded on balance sheet | asset		18	9
CAFL
Other Real Estate [Roll Forward]
Balance at beginning of period	2,529	$ 2,529
Amount related to transfers into REO		11,924
Liquidations		(1,949)
Unrealized gain (loss) resulting from market valuation adjustments on REO		(655)
Balance at End of Period		$ 11,849
Number of REO properties recorded on balance sheet | asset		2	2
Bridge Loan
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 4,600	$ 4,600
Amount related to transfers into REO		2,289
Liquidations		(5,972)
Unrealized gain (loss) resulting from market valuation adjustments on REO		428
Balance at End of Period		$ 1,345
Number of REO properties recorded on balance sheet | asset		3	3

Short-Term Debt - Outstanding B

Short-Term Debt - Outstanding Balances of Short-Term Debt by Type of Collateral Securing Debt (Details)		6 Months Ended	12 Months Ended
		Jun. 30, 2021USD ($)facility	Dec. 31, 2020USD ($)facility
Short-term Debt [Line Items]
Outstanding Balance	[1]	$ 1,484,999,000	$ 522,609,000
Facilities
Short-term Debt [Line Items]
Number of Facilities | facility		11	9
Outstanding Balance		$ 1,321,370,000	$ 314,234,000
Facilities | Residential loan warehouse
Short-term Debt [Line Items]
Number of Facilities | facility		6	4
Outstanding Balance		$ 1,049,144,000	$ 137,269,000
Limit		$ 2,350,000,000	$ 1,300,000,000
Weighted Average Interest Rate (1)		1.87%	2.45%
Weighted Average Days Until Maturity		211 days	268 days
Facilities | Business purpose residential loan warehouse
Short-term Debt [Line Items]
Number of Facilities | facility		2	2
Outstanding Balance		$ 191,288,000	$ 99,190,000
Limit		$ 355,497,000	$ 500,000,000
Weighted Average Interest Rate (1)		2.99%	3.37%
Weighted Average Days Until Maturity		260 days	521 days
Facilities | Real estate securities repo
Short-term Debt [Line Items]
Number of Facilities | facility		3	3
Outstanding Balance		$ 80,938,000	$ 77,775,000
Limit		$ 0	$ 0
Weighted Average Interest Rate (1)		1.53%	2.24%
Weighted Average Days Until Maturity		35 days	36 days
Servicer advance financing
Short-term Debt [Line Items]
Number of Facilities | facility		1	1
Outstanding Balance		$ 163,629,000	$ 208,375,000
Limit		$ 260,000,000	$ 335,000,000
Weighted Average Interest Rate (1)		1.89%	1.95%
Weighted Average Days Until Maturity		153 days	334 days
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, respectively. See Note 4 for further discussion.

Short-Term Debt - Collateral fo

Short-Term Debt - Collateral for Short-Term Debt Facilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Total collateral for financing	$ 1,716,330	$ 649,106
Facilities
Short-term Debt [Line Items]
Total real estate securities owned	109,656	114,553
Other assets	1,709	315
Total collateral for financing	1,513,042	398,252
Servicer advance financing
Short-term Debt [Line Items]
Total collateral for financing	203,288	250,854
Cash	12,442	9,978
Restricted cash	19,028	23,220
Servicer advances	171,818	217,656
Held-for-sale residential loans | Facilities
Short-term Debt [Line Items]
Market value of loans pledged as collateral under short-term borrowing agreements	1,152,267	156,355
Business purpose loans | Facilities
Short-term Debt [Line Items]
Market value of loans pledged as collateral under short-term borrowing agreements	249,410	127,029
On balance sheet | Facilities
Short-term Debt [Line Items]
Available-for-sale securities pledged as collateral	16,435	23,193
Sequoia | Sequoia securities | Short Term Borrowing Agreement | Facilities
Short-term Debt [Line Items]
Trading securities pledged as collateral	62,387	63,105
Freddie Mac K-Series | Sequoia securities | Short Term Borrowing Agreement | Facilities
Short-term Debt [Line Items]
Trading securities pledged as collateral	$ 30,834	$ 28,255

Short-Term Debt - Additional In

Short-Term Debt - Additional Information (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Average balance of short-term debt	$ 1,850,000,000	$ 1,420,000,000
Accrued interest payable on short-term debt	2,000,000	2,000,000	$ 1,000,000
Committed line of credit	10,000,000	10,000,000
Fair value of mortgage backed securities securing loan (in excess)	2,000,000	2,000,000
Amount outstanding under credit facilities	0	0	$ 0
Servicer advance financing
Short-term Debt [Line Items]
Accrued interest payable on short-term debt	100,000	100,000
Unamortized capitalized commitment costs	$ 400,000	$ 400,000

Short-Term Debt - Remaining Mat

Short-Term Debt - Remaining Maturities of Short Term Debt (Details) - USD ($) $ in Thousands		Jun. 30, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Short-term debt	[1]	$ 1,484,999	$ 522,609
Within 30 days
Short-term Debt [Line Items]
Short-term debt		44,527
31 to 90 days
Short-term Debt [Line Items]
Short-term debt		155,873
Over 90 days
Short-term Debt [Line Items]
Short-term debt		1,284,599
Facilities
Short-term Debt [Line Items]
Short-term debt		1,321,370	314,234
Facilities | Within 30 days
Short-term Debt [Line Items]
Short-term debt		44,527
Facilities | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		155,873
Facilities | Over 90 days
Short-term Debt [Line Items]
Short-term debt		1,120,970
Facilities | Held-for-sale residential loans
Short-term Debt [Line Items]
Short-term debt		1,049,144	137,269
Facilities | Held-for-sale residential loans | Within 30 days
Short-term Debt [Line Items]
Short-term debt		0
Facilities | Held-for-sale residential loans | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		119,462
Facilities | Held-for-sale residential loans | Over 90 days
Short-term Debt [Line Items]
Short-term debt		929,682
Facilities | Business purpose loans
Short-term Debt [Line Items]
Short-term debt		191,288
Facilities | Business purpose loans | Within 30 days
Short-term Debt [Line Items]
Short-term debt		0
Facilities | Business purpose loans | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		0
Facilities | Business purpose loans | Over 90 days
Short-term Debt [Line Items]
Short-term debt		191,288
Facilities | Real estate securities
Short-term Debt [Line Items]
Short-term debt		80,938
Facilities | Real estate securities | Within 30 days
Short-term Debt [Line Items]
Short-term debt		44,527
Facilities | Real estate securities | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		36,411
Facilities | Real estate securities | Over 90 days
Short-term Debt [Line Items]
Short-term debt		0
Servicer advance financing
Short-term Debt [Line Items]
Short-term debt		163,629	$ 208,375
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		$ 163,629
[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 June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, 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)	Jun. 30, 2021USD ($)series	Dec. 31, 2020USD ($)series
Debt Instrument [Line Items]
Certificates	$ 1,495,520,000
Net Carrying Value	1,484,308,000
Asset-backed securities issued
Debt Instrument [Line Items]
Net Carrying Value	7,536,997,000	$ 7,100,661,000
Asset-backed securities issued | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
Net Carrying Value	194,465,000	257,778,000
Asset-backed securities issued | Certificates with principal balance
Debt Instrument [Line Items]
Certificates	7,125,920,000	6,637,905,000
Asset-backed securities issued | Interest-only certificates
Debt Instrument [Line Items]
Certificates	216,612,000	204,978,000
Asset-backed securities issued | Legacy Sequoia
Debt Instrument [Line Items]
Net Carrying Value	$ 258,211,000	$ 282,326,000
Number of series | series	20	20
Asset-backed securities issued | Legacy Sequoia | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
Net Carrying Value	$ (33,660,000)	$ (47,805,000)
Asset-backed securities issued | Legacy Sequoia | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	0.49%	0.35%
Asset-backed securities issued | Legacy Sequoia | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	1.46%	1.55%
Asset-backed securities issued | Legacy Sequoia | Certificates with principal balance
Debt Instrument [Line Items]
Certificates	$ 291,083,000	$ 329,039,000
Asset-backed securities issued | Legacy Sequoia | Interest-only certificates
Debt Instrument [Line Items]
Certificates	788,000	1,092,000
Asset-backed securities issued | Sequoia
Debt Instrument [Line Items]
Net Carrying Value	$ 1,990,548,000	$ 1,347,357,000
Number of series | series	12	10
Asset-backed securities issued | Sequoia | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
Net Carrying Value	$ 28,365,000	$ 32,809,000
Asset-backed securities issued | Sequoia | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	2.31%	2.25%
Asset-backed securities issued | Sequoia | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	5.10%	5.04%
Asset-backed securities issued | Sequoia | Certificates with principal balance
Debt Instrument [Line Items]
Certificates	$ 1,946,901,000	$ 1,309,957,000
Asset-backed securities issued | Sequoia | Interest-only certificates
Debt Instrument [Line Items]
Certificates	15,282,000	4,591,000
Asset-backed securities issued | CAFL
Debt Instrument [Line Items]
Net Carrying Value	$ 3,007,596,000	$ 3,013,093,000
Number of series | series	14	14
Asset-backed securities issued | CAFL | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
Net Carrying Value	$ 93,488,000	$ 133,734,000
Asset-backed securities issued | CAFL | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	2.62%	2.68%
Asset-backed securities issued | CAFL | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	5.20%	5.42%
Asset-backed securities issued | CAFL | Certificates with principal balance
Debt Instrument [Line Items]
Certificates	$ 2,746,648,000	$ 2,716,425,000
Asset-backed securities issued | CAFL | Interest-only certificates
Debt Instrument [Line Items]
Certificates	167,460,000	162,934,000
Asset-backed securities issued | Freddie Mac SLST
Debt Instrument [Line Items]
Net Carrying Value	$ 1,826,318,000	$ 1,993,919,000
Number of series | series	3	3
Debt instrument, face amount	$ 179,000,000	$ 205,000,000
Asset-backed securities issued | Freddie Mac SLST | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
Net Carrying Value	$ 86,109,000	$ 104,439,000
Asset-backed securities issued | Freddie Mac SLST | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	3.50%	3.50%
Asset-backed securities issued | Freddie Mac SLST | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	4.75%	4.75%
Asset-backed securities issued | Freddie Mac SLST | Certificates with principal balance
Debt Instrument [Line Items]
Certificates	$ 1,718,754,000	$ 1,866,145,000
Asset-backed securities issued | Freddie Mac SLST | Interest-only certificates
Debt Instrument [Line Items]
Certificates	21,455,000	23,335,000
Asset-backed securities issued | Freddie Mac K-Series
Debt Instrument [Line Items]
Net Carrying Value	$ 454,324,000	$ 463,966,000
Range of weighted average interest rates, by series	3.41%	3.39%
Number of series | series	1	1
Asset-backed securities issued | Freddie Mac K-Series | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
Net Carrying Value	$ 20,163,000	$ 34,601,000
Asset-backed securities issued | Freddie Mac K-Series | Certificates with principal balance
Debt Instrument [Line Items]
Certificates	422,534,000	416,339,000
Asset-backed securities issued | Freddie Mac K-Series | Interest-only certificates
Debt Instrument [Line Items]
Certificates	$ 11,627,000	$ 13,026,000

Asset-Backed Securities Issue_3

Asset-Backed Securities Issued - Additional Information (Details) - USD ($)	3 Months Ended	6 Months Ended
	Sep. 30, 2020	Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
VIE, ownership interest rate		80.00%
Variable Interest Entity, Primary Beneficiary | Freddie Mac SLST
Debt Instrument [Line Items]
ABS issued, net, Amortized cost	$ 210,000,000
Asset-backed securities issued | Freddie Mac SLST
Debt Instrument [Line Items]
Debt instrument, face amount		$ 179,000,000	$ 205,000,000
Asset-backed securities issued | Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
VIE, ownership interest rate	100.00%
Debt instrument, face amount		176,000,000
Unamortized debt discount		$ 3,000,000
Debt Instrument interest rate		4.75%
Asset-backed securities issued | Contractual maturities of over five years
Debt Instrument [Line Items]
Contractual maturities of securities (in years)		5 years

Asset-Backed Securities Issue_4

Asset-Backed Securities Issued - Accrued Interest Payable (Details) - Asset-backed securities issued - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	$ 22,227	$ 21,793
Legacy Sequoia
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	123	141
Sequoia
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	5,521	4,697
CAFL
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	10,183	10,122
Freddie Mac SLST
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	5,200	5,656
Freddie Mac K-Series
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	$ 1,200	$ 1,177

Long-Term Debt - Schedule of Co

Long-Term Debt - Schedule of Components of Long-Term Debt (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2021USD ($)
Debt Instrument [Line Items]
Borrowings	$ 1,495,520
Unamortized Deferred Issuance Costs / Discount	(11,212)
Net Carrying Value	1,484,308
Facilities
Debt Instrument [Line Items]
Borrowings	835,099
Unamortized Deferred Issuance Costs / Discount	(1,827)
Net Carrying Value	833,272
Trust preferred securities and subordinated notes
Debt Instrument [Line Items]
Borrowings	139,500
Unamortized Deferred Issuance Costs / Discount	(803)
Net Carrying Value	$ 138,697
Trust preferred securities and subordinated notes | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%
Non-Recourse Business Purpose Loans
Debt Instrument [Line Items]
Repayments of debt	$ 242,000
Sequoia | Recourse Subordinate Securities Financing | Affiliated Entity
Debt Instrument [Line Items]
Borrowings	160,102
Unamortized Deferred Issuance Costs / Discount	(521)
Net Carrying Value	$ 159,581
Weighted Average Interest Rate (as a percent)	4.21%
CAFL | Recourse Subordinate Securities Financing | Affiliated Entity
Debt Instrument [Line Items]
Borrowings	$ 102,424
Unamortized Deferred Issuance Costs / Discount	(505)
Net Carrying Value	$ 101,919
Weighted Average Interest Rate (as a percent)	4.21%
Non-Recourse BPL Financing, Facility A | Facilities
Debt Instrument [Line Items]
Borrowings	$ 45,582
Unamortized Deferred Issuance Costs / Discount	(444)
Net Carrying Value	45,138
Limit	$ 45,582
Non-Recourse BPL Financing, Facility A | Facilities | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	3.85%
Non-Recourse BPL Financing, Facility B | Facilities
Debt Instrument [Line Items]
Borrowings	$ 57,616
Unamortized Deferred Issuance Costs / Discount	(199)
Net Carrying Value	57,417
Limit	$ 250,000
Non-Recourse BPL Financing, Facility B | Facilities | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	3.00%
Recourse BPL Financing, Facility C | Facilities
Debt Instrument [Line Items]
Borrowings	$ 269,100
Unamortized Deferred Issuance Costs / Discount	0
Net Carrying Value	269,100
Limit	$ 450,000
Recourse BPL Financing, Facility C | Facilities | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	3.40%
Recourse BPL Financing, Facility D | Facilities
Debt Instrument [Line Items]
Borrowings	$ 200,275
Unamortized Deferred Issuance Costs / Discount	(158)
Net Carrying Value	200,117
Limit	$ 250,000
Recourse BPL Financing, Facility D | Facilities | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	3.00%
4.75% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 198,629
Unamortized Deferred Issuance Costs / Discount	(2,356)
Net Carrying Value	$ 196,273
Weighted Average Interest Rate (as a percent)	4.75%
5.625% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 150,200
Unamortized Deferred Issuance Costs / Discount	(2,450)
Net Carrying Value	$ 147,750
Weighted Average Interest Rate (as a percent)	5.625%
5.75% exchangeable senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 172,092
Unamortized Deferred Issuance Costs / Discount	(3,776)
Net Carrying Value	$ 168,316
Weighted Average Interest Rate (as a percent)	5.75%

Long-Term Debt - Schedule of _2

Long-Term Debt - Schedule of Collateral for Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Collateral amounts	$ 1,171,811	$ 1,084,929
Bridge Loan
Debt Instrument [Line Items]
Collateral amounts	555,791	544,151
Residential Real Estate
Debt Instrument [Line Items]
Collateral amounts	246,903	154,774
Commercial Real Estate
Debt Instrument [Line Items]
Collateral amounts	369,117	363,490
Commercial Real Estate | Sequoia | Affiliated Entity
Debt Instrument [Line Items]
Collateral amounts	256,910	249,446
Commercial Real Estate | CAFL | Affiliated Entity
Debt Instrument [Line Items]
Collateral amounts	112,207	114,044
Other Business Purpose Loan Investments
Debt Instrument [Line Items]
Collateral amounts	0	21,414
Restricted cash
Debt Instrument [Line Items]
Collateral amounts	$ 0	$ 1,100

Long-Term Debt - Schedule of Ac

Long-Term Debt - Schedule of Accrued Interest Payable on Long Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Accrued interest payable	$ 11,223	$ 12,402
Facilities
Debt Instrument [Line Items]
Accrued interest payable	704	1,799
Convertible notes | 4.75% convertible senior notes
Debt Instrument [Line Items]
Accrued interest payable	3,564	3,564
Convertible notes | 5.625% convertible senior notes
Debt Instrument [Line Items]
Accrued interest payable	3,896	3,896
Convertible notes | 5.75% exchangeable senior notes
Debt Instrument [Line Items]
Accrued interest payable	2,474	2,474
Trust preferred securities and subordinated notes
Debt Instrument [Line Items]
Accrued interest payable	$ 585	$ 669

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
		Jun. 30, 2021USD ($)lease	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)leaserepurchase_requestloan	Jun. 30, 2020USD ($)loanrepurchase_request	Dec. 31, 2018partnership	Dec. 31, 2020USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Loss Contingencies [Line Items]
Lessee, number of leases | lease		7		7
Present value of remaining lease payments		$ 19,325		$ 19,325
Operating lease expense				2,000	$ 2,000
Increase in operating lease liability		1,000
Increase in operating lease, right of use asset		1,000
Operating lease liabilities		$ 15,997		$ 15,997			$ 16,687
Operating lease liability, statement of financial position [Extensible List]		us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent		us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent
Operating lease right-of-use assets		$ 14,370		$ 14,370			15,012
Operating lease right-of-use asset, statement of financial position [Extensible List]		Other assets		Other assets
Weighted average remaining lease term		7 years		7 years
Discount rate		4.90%		4.90%
Derivative liabilities	[1]	$ 3,240		$ 3,240			16,072
Number of partnerships, committed to fund | partnership						2
Other income related to risk sharing agreement		861	$ 1,181	1,743	$ 1,946
Guarantee obligations		8,446		8,446			10,039
Guarantee obligations, credit reserve		5,000		5,000
Special purpose entities assets		34,000		34,000			46,000
Special purpose entities liabilities		8,000		8,000			10,000
Residential repurchase reserve		8,709		$ 8,709			8,631
Number of residential repurchase requests (in repurchase requests) | repurchase_request				1	5
Number of loans repurchased | loan				1	0
Residential loans repurchase provision (reversal)				$ 300	$ (4,000)
Aggregate amount of loss contingency reserves		2,000		2,000
Residential Loan Seller Demands
Loss Contingencies [Line Items]
Aggregate amount of accrual		2,000		2,000
Residential Loans
Loss Contingencies [Line Items]
Loan principal		1,135,356		1,135,356			172,748
Fair value of loans		1,160,548		1,160,548			176,641
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Loans
Loss Contingencies [Line Items]
Fair value of loans		2,100		2,100			$ 1,882
Other income
Loss Contingencies [Line Items]
Other income related to risk sharing agreement		1,000	1,000	2,000	2,000
Mortgage banking and investment activities
Loss Contingencies [Line Items]
Market valuation losses related to these investments			(200)		(1,000)
Guarantee Obligations
Loss Contingencies [Line Items]
Original unpaid balance of loans subject to risk sharing agreements								$ 3,190,000	$ 3,190,000
Potential future payments on loans		44,000		44,000
Loan principal		$ 702,000		$ 702,000
Weighted average original FICO score		756		756
Weighted average original loan-to-value (LTV)		75.00%		75.00%
Guarantee Obligations | Residential Loans
Loss Contingencies [Line Items]
Unpaid principal balance of loans in foreclosure		$ 200		$ 200
Guarantee Obligations | Financing Receivables, Equal to Greater than 90 Days Past Due
Loss Contingencies [Line Items]
Fair value of loans		29,000		29,000
Commitment To Fund Residential Bridge Loan
Loss Contingencies [Line Items]
Commitments to fund temporary advances		374,000		374,000
Derivative liabilities		(300)		(300)
Commitment To Fund Temporary Advances On Residential Bridge Loans
Loss Contingencies [Line Items]
Commitments to fund temporary advances		300		300
Net market valuation gains (losses)		$ 1,000	$ 2,000	$ 2,000	$ (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 June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, respectively. See Note 4 for further discussion.

Commitments and Contingencies_2

Commitments and Contingencies - Future Lease Commitments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
2021 (6 months)	$ 1,854
2022	3,714
2023	3,235
2024	2,411
2025	1,983
2026 and thereafter	6,128
Total Lease Commitments	19,325
Less: Imputed interest	(3,328)
Operating lease liabilities	$ 15,997	$ 16,687

Equity - Changes to Accumulated

Equity - Changes to Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	$ 1,215,575	$ 725,202	$ 1,110,899	$ 1,827,231
Total other comprehensive income (loss)	4,752	56,140	13,961	(70,904)
Balance at End of Period	1,295,142	936,576	1,295,142	936,576
Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	84,527	(1,865)	76,336	92,452
Other comprehensive income before reclassifications	11,224	52,393	22,210	(28,126)
Amounts reclassified from other accumulated comprehensive income	(7,500)	2,718	(10,295)	(11,080)
Total other comprehensive income (loss)	3,724	55,111	11,915	(39,206)
Balance at End of Period	88,251	53,246	88,251	53,246
Interest Rate Agreements Accounted for as Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(79,539)	(83,666)	(80,557)	(50,939)
Other comprehensive income before reclassifications	0	0	0	(32,806)
Amounts reclassified from other accumulated comprehensive income	1,028	1,029	2,046	1,108
Total other comprehensive income (loss)	1,028	1,029	2,046	(31,698)
Balance at End of Period	$ (78,511)	$ (82,637)	$ (78,511)	$ (82,637)

Equity - Reclassifications out

Equity - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investment fair value changes, net	$ 49,480	$ 152,228	$ 94,567	$ (718,604)
Realized gains, net	(8,384)	(25,965)	(11,100)	(29,817)
Interest expense	108,065	102,666	210,617	249,337
Net income before provision for income taxes	96,712	165,481	205,512	(800,146)
Reclassification out of Accumulated Other Comprehensive Income | Available-for-Sale Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investment fair value changes, net	(13)	(54)	(388)	1,471
Realized gains, net	(7,487)	2,772	(9,907)	(12,551)
Net income before provision for income taxes	(7,500)	2,718	(10,295)	(11,080)
Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Agreements Accounted for as Cash Flow Hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense	1,028	1,029	2,046	1,108
Net income before provision for income taxes	$ 1,028	$ 1,029	$ 2,046	$ 1,108

Equity - Additional Information

Equity - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Feb. 28, 2018
Share Repurchase Plan, February 2018
Stockholders Equity Note [Line Items]
Common stock authorized to repurchase by Board					$ 100,000,000
Common stock repurchased (in shares)			0
Available authorization remaining for repurchase	$ 78,000,000		$ 78,000,000
Convertible Debt Securities
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share (in shares)				34,100,000
Equity awards
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share (in shares)	18,645	11,561	17,053	16,405
At The Market Offerings | Common Stock
Stockholders Equity Note [Line Items]
Stock issuance program, authorized amount	$ 175,000,000		$ 175,000,000
Remaining capacity	$ 110,000,000		$ 110,000,000
Issuance of common stock (in shares)			0
Common Stock
Stockholders Equity Note [Line Items]
Issuance of common stock (in shares)			806,068	350,088
Direct stock purchase and dividend reinvestment plan (in shares)			0	0

Equity - Basic and Diluted Earn

Equity - Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Basic Earnings (Loss) per Common Share:
Net income (loss) attributable to Redwood	$ 90,025	$ 165,444	$ 187,282	$ (777,954)
Less: Dividends and undistributed earnings allocated to participating securities	(3,149)	(4,528)	(6,458)	(1,011)
Net income (loss) allocated to common shareholders	$ 86,876	$ 160,916	$ 180,824	$ (778,965)
Basic weighted average common shares outstanding (in shares)	112,921,070	114,383,289	112,337,984	114,229,928
Basic Earnings (Loss) per Common Share (in dollars per share)	$ 0.77	$ 1.41	$ 1.61	$ (6.82)
Diluted Earnings (Loss) per Common Share:
Net income (loss) attributable to Redwood	$ 90,025	$ 165,444	$ 187,282	$ (777,954)
Less: Dividends and undistributed earnings allocated to participating securities	(2,869)	(3,116)	(5,829)	(1,011)
Adjust for interest expense and gain on extinguishment of convertible notes for the period, net of tax	6,990	(15,835)	13,971	0
Net income (loss) allocated to common shareholders	$ 94,146	$ 146,493	$ 195,424	$ (778,965)
Weighted average common shares outstanding (in shares)	112,921,070	114,383,289	112,337,984	114,229,928
Net effect of dilutive equity awards (in shares)	273,139	0	234,353	0
Net effect of assumed convertible notes conversion to common shares (in shares)	28,566,875	32,715,790	28,566,875	0
Diluted weighted average common shares outstanding (in shares)	141,761,084	147,099,079	141,139,212	114,229,928
Diluted Earnings (Loss) per Common Share (in dollars per share)	$ 0.66	$ 1	$ 1.38	$ (6.82)

Equity Compensation Plans - Add

Equity Compensation Plans - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 27,207	$ 27,207	$ 27,664
Weighted average amortization period remaining for equity awards		1 year
Shares of common stock to be purchased in aggregate for all employees (in shares)	850,000	850,000
Number of shares purchased by employees (in shares)		523,991	489,886
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards (in shares)	29,693	29,693	78,998
Number of stock awards granted (in shares)		0
Number of stock awards vested (in shares)		49,305,000
Number of stock awards forfeited (in shares)		0
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards (in shares)	453,811	453,811	282,424
Number of stock awards granted (in shares)		272,261,000
Number of stock awards vested (in shares)		62,494,000
Number of stock awards forfeited (in shares)		38,380,000
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards (in shares)	3,081,201	3,081,201	2,805,144
Number of stock awards granted (in shares)		463,213,000
Number of stock awards vested (in shares)		1,437,464	1,206,125
Number of stock awards forfeited (in shares)		31,161,000
Stock units distributed (in shares)		155,995,000
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards (in shares)	955,710	955,710	978,735
Share-based compensation, vesting period (in years)		3 years
Adjustment for future amortization expense	$ 1,000
Redwood Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for grant (in shares)	7,443,250	7,443,250	7,957,891
Redwood Incentive Plan | Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 291	$ 291	$ 564
Redwood Incentive Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	4,548	4,548	3,540
Redwood Incentive Plan | Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	16,728	16,728	17,766
Redwood Incentive Plan | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 5,511	$ 5,511	$ 5,794

Equity Compensation Plans - Unr

Equity Compensation Plans - Unrecognized Compensation Cost (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	$ 27,664
Equity grants	5,770
Performance-based valuation adjustment	1,072
Equity grant forfeitures	(1,162)
Equity compensation expense	(6,137)
Unrecognized Compensation Cost at End of Period	27,207
Redwood Incentive Plan | Restricted Stock Awards
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	564
Equity grants	0
Performance-based valuation adjustment	0
Equity grant forfeitures	(2)
Equity compensation expense	(271)
Unrecognized Compensation Cost at End of Period	291
Redwood Incentive Plan | Restricted Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	3,540
Equity grants	2,370
Performance-based valuation adjustment	0
Equity grant forfeitures	(610)
Equity compensation expense	(752)
Unrecognized Compensation Cost at End of Period	4,548
Redwood Incentive Plan | Deferred Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	17,766
Equity grants	3,141
Performance-based valuation adjustment	0
Equity grant forfeitures	(550)
Equity compensation expense	(3,629)
Unrecognized Compensation Cost at End of Period	16,728
Redwood Incentive Plan | Performance Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	5,794
Equity grants	0
Performance-based valuation adjustment	1,072
Equity grant forfeitures	0
Equity compensation expense	(1,355)
Unrecognized Compensation Cost at End of Period	5,511
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	259
Performance-based valuation adjustment	0
Equity grant forfeitures	0
Equity compensation expense	(130)
Unrecognized Compensation Cost at End of Period	$ 129

Mortgage Banking Activities, _3

Mortgage Banking Activities, Net - Components of Mortgage Banking Activities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income, net	$ 2,126	$ 1,165	$ 5,969	$ 4,093
Mortgage banking activities, net	54,419	(5,982)	137,026	(34,884)
Residential Mortgage Banking Activities, Net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income, net	1,193	(6,612)	2,216	(6,354)
Mortgage banking activities, net	21,265	(8,005)	82,700	(31,086)
Residential Mortgage Banking Activities, Net | Residential loans, at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	76,907	(1,393)	47,634	6,562
Residential Mortgage Banking Activities, Net | Trading securities
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	(1,095)	0	(374)	0
Residential Mortgage Banking Activities, Net | Risk management derivatives
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Risk management derivatives	(55,740)	0	33,224	(31,294)
Business Purpose Mortgage Banking Activities, Net:
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	2,225	(1,260)	3,269	(5,194)
Other income, net	7,467	2,073	13,489	9,916
Mortgage banking activities, net	33,154	2,023	54,326	(3,798)
Business Purpose Mortgage Banking Activities, Net: | Risk management derivatives
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Risk management derivatives	(2,504)	0	1,354	(21,538)
Business Purpose Mortgage Banking Activities, Net: | Single-family rental loans, at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	$ 25,966	$ 1,210	$ 36,214	$ 13,018

Other Income (Details)

Other Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Other Income and Expenses [Abstract]
MSR (loss) income, net	$ (43)	$ (1,424)	$ 654	$ (3,233)
Risk share income	861	1,181	1,743	1,946
FHLBC capital stock dividend	25	538	50	1,085
Bridge loan fees	911	626	1,604	1,804
Other	372	244	1,918	2,491
Other income, net	$ 2,126	$ 1,165	$ 5,969	$ 4,093

General and Administrative Ex_3

General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses - Components of General and Administrative Expenses and Other Expenses (Details) - USD ($) $ in Thousands	Oct. 15, 2019	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Business Acquisition [Line Items]
Fixed compensation expense		$ 11,269	$ 11,818	$ 23,074	$ 26,502
Annual variable compensation		12,508	3,278	31,177	3,289
Long-term incentive award expense		5,682	3,262	9,851	5,257
Acquisition-related equity compensation expense		1,212	1,212	2,424	2,424
Systems and consulting		3,272	2,395	6,249	5,607
Office costs		2,024	1,887	3,832	3,995
Accounting and legal		1,221	2,788	1,935	5,004
Corporate costs		873	626	1,564	1,297
Other		2,533	1,254	4,039	3,827
Total General and Administrative Expenses		40,594	28,520	84,145	57,202
Commissions		1,661	360	2,924	2,148
Underwriting costs		1,836	856	3,521	2,518
Transfer and holding costs		251	356	862	892
Total Loan Acquisition Costs		3,748	1,572	7,307	5,558
Goodwill impairment expense		0	0	0	88,675
Amortization of purchase-related intangible assets		3,873	3,873	7,746	8,182
Other		112	1,210	335	(359)
Total Other Expenses		3,985	5,083	8,081	96,498
Total General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses		48,327	$ 35,175	99,533	$ 159,258
Settlement in Common Stock
Business Acquisition [Line Items]
Long-term incentive award expense		4,000		7,000
Settlement in Cash
Business Acquisition [Line Items]
Long-term incentive award expense		$ 1,000		$ 3,000
CoreVest
Business Acquisition [Line Items]
Restricted stock awards (in shares)	588,260
Restricted stock awards	$ 10,000
Contingent consideration performance term	2 years

Taxes - Additional Information

Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Provision from (benefit for) income taxes	$ 6,687	$ 37	$ 18,230	$ (22,192)

Taxes - Reconciliation of Statu

Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	21.00%
State statutory rate, net of Federal tax effect	8.60%	8.60%
Differences in taxable (loss) income from GAAP income	(14.10%)	(23.60%)
Change in valuation allowance	(3.30%)	(3.20%)
Dividends paid deduction	(3.30%)	0.00%
Effective Tax Rate	8.90%	2.80%

Segment Information - Additiona

Segment Information - Additional Information (Details)	6 Months Ended
	Jun. 30, 2021segment
Segment Reporting [Abstract]
Number of operating segments	3

Segment Information - Financial

Segment Information - Financial Information by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Interest income	$ 138,695	$ 129,946	$ 267,000	$ 328,027
Interest expense	(108,065)	(102,666)	(210,617)	(249,337)
Net Interest Income	30,630	27,280	56,383	78,690
Non-interest Income (Loss)
Mortgage banking activities, net	54,419	(5,982)	137,026	(34,884)
Investment fair value changes, net	49,480	152,228	94,567	(718,604)
Other income, net	2,126	1,165	5,969	4,093
Realized gains, net	8,384	25,965	11,100	29,817
Total non-interest income (loss), net	114,409	173,376	248,662	(719,578)
General and administrative expenses	(40,594)	(28,520)	(84,145)	(57,202)
Loan acquisition costs	(3,748)	(1,572)	(7,307)	(5,558)
Other expenses	(3,985)	(5,083)	(8,081)	(96,498)
Provision for income taxes	(6,687)	(37)	(18,230)	22,192
Net Income (Loss)	90,025	165,444	187,282	(777,954)
Non-cash amortization (expense) income, net	(6,015)	(8,963)	(12,245)	(13,044)
Other significant non-cash expense: goodwill impairment	0	0	0	(88,675)
Operating Segments | Residential Lending
Segment Reporting Information [Line Items]
Interest income	33,033	36,653	60,581	97,284
Interest expense	(21,056)	(28,762)	(40,093)	(66,324)
Net Interest Income	11,977	7,891	20,488	30,960
Non-interest Income (Loss)
Mortgage banking activities, net	21,265	(8,005)	82,700	(31,086)
Investment fair value changes, net	3,927	35,085	6,673	(161,550)
Other income, net	839	230	3,692	(267)
Realized gains, net	6,687	205	9,095	2,001
Total non-interest income (loss), net	32,718	27,515	102,160	(190,902)
General and administrative expenses	(7,793)	(3,700)	(21,550)	(8,299)
Loan acquisition costs	(1,887)	(175)	(3,303)	(1,208)
Other expenses	0	0	(6)	0
Provision for income taxes	(4,171)	3,323	(14,150)	8,653
Net Income (Loss)	30,844	34,854	83,639	(160,796)
Non-cash amortization (expense) income, net	1,339	(1,265)	3,005	(1,053)
Other significant non-cash expense: goodwill impairment				0
Operating Segments | Business Purpose Lending
Segment Reporting Information [Line Items]
Interest income	70,515	53,742	134,920	106,802
Interest expense	(54,442)	(36,631)	(104,517)	(68,984)
Net Interest Income	16,073	17,111	30,403	37,818
Non-interest Income (Loss)
Mortgage banking activities, net	33,154	2,023	54,326	(3,798)
Investment fair value changes, net	3,782	40,401	7,081	(101,729)
Other income, net	1,017	686	1,860	2,870
Realized gains, net	390	0	498	0
Total non-interest income (loss), net	38,343	43,110	63,765	(102,657)
General and administrative expenses	(13,688)	(9,016)	(24,847)	(20,656)
Loan acquisition costs	(1,861)	(1,277)	(3,913)	(3,970)
Other expenses	(3,873)	(3,884)	(7,650)	(96,869)
Provision for income taxes	(2,182)	2,439	(3,503)	9,021
Net Income (Loss)	32,812	48,483	54,255	(177,313)
Non-cash amortization (expense) income, net	(5,584)	(6,391)	(11,441)	(11,316)
Other significant non-cash expense: goodwill impairment				(88,675)
Operating Segments | Third-Party Investments
Segment Reporting Information [Line Items]
Interest income	33,972	36,811	68,962	118,007
Interest expense	(22,334)	(24,927)	(45,513)	(87,428)
Net Interest Income	11,638	11,884	23,449	30,579
Non-interest Income (Loss)
Mortgage banking activities, net	0	0	0	0
Investment fair value changes, net	42,018	76,972	81,734	(454,586)
Other income, net	5	(509)	5	732
Realized gains, net	1,307	578	1,507	2,634
Total non-interest income (loss), net	43,330	77,041	83,246	(451,220)
General and administrative expenses	(930)	(1,986)	(2,061)	(3,521)
Loan acquisition costs	0	(120)	(87)	(373)
Other expenses	(112)	(1,065)	(442)	817
Provision for income taxes	(334)	(5,799)	(577)	4,518
Net Income (Loss)	53,592	79,955	103,528	(419,200)
Non-cash amortization (expense) income, net	185	312	41	1,053
Other significant non-cash expense: goodwill impairment				0
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income	1,175	2,740	2,537	5,934
Interest expense	(10,233)	(12,346)	(20,494)	(26,601)
Net Interest Income	(9,058)	(9,606)	(17,957)	(20,667)
Non-interest Income (Loss)
Mortgage banking activities, net	0	0	0	0
Investment fair value changes, net	(247)	(230)	(921)	(739)
Other income, net	265	758	412	758
Realized gains, net	0	25,182	0	25,182
Total non-interest income (loss), net	18	25,710	(509)	25,201
General and administrative expenses	(18,183)	(13,818)	(35,687)	(24,726)
Loan acquisition costs	0	0	(4)	(7)
Other expenses	0	(134)	17	(446)
Provision for income taxes	0	0	0	0
Net Income (Loss)	(27,223)	2,152	(54,140)	(20,645)
Non-cash amortization (expense) income, net	$ (1,955)	$ (1,619)	$ (3,850)	(1,728)
Other significant non-cash expense: goodwill impairment				$ 0

Segment Information - Component

Segment Information - Components of Corporate/Other (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Interest income	$ 138,695	$ 129,946	$ 267,000	$ 328,027
Interest expense	(108,065)	(102,666)	(210,617)	(249,337)
Net Interest Income	30,630	27,280	56,383	78,690
Investment fair value changes, net	49,480	152,228	94,567	(718,604)
Other	372	244	1,918	2,491
Realized gains, net	8,384	25,965	11,100	29,817
Total non-interest income (loss), net	114,409	173,376	248,662	(719,578)
General and administrative expenses	(40,594)	(28,520)	(84,145)	(57,202)
Loan acquisition costs	(3,748)	(1,572)	(7,307)	(5,558)
Other expenses	(3,985)	(5,083)	(8,081)	(96,498)
Net Income (Loss)	90,025	165,444	187,282	(777,954)
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income	1,175	2,740	2,537	5,934
Interest expense	(10,233)	(12,346)	(20,494)	(26,601)
Net Interest Income	(9,058)	(9,606)	(17,957)	(20,667)
Investment fair value changes, net	(247)	(230)	(921)	(739)
Other	265	758	412	758
Realized gains, net	0	25,182	0	25,182
Total non-interest income (loss), net	18	25,710	(509)	25,201
General and administrative expenses	(18,183)	(13,818)	(35,687)	(24,726)
Loan acquisition costs	0	0	(4)	(7)
Other expenses	0	(134)	17	(446)
Net Income (Loss)	(27,223)	2,152	(54,140)	(20,645)
Corporate/ Other | Legacy Consolidated VIEs
Segment Reporting Information [Line Items]
Interest income	1,169	2,685	2,517	5,879
Interest expense	(755)	(1,518)	(1,630)	(4,040)
Net Interest Income	414	1,167	887	1,839
Investment fair value changes, net	(216)	(230)	(915)	(621)
Other	0	0	0	0
Realized gains, net	0	0	0	0
Total non-interest income (loss), net	(216)	(230)	(915)	(621)
General and administrative expenses	0	0	0	0
Loan acquisition costs			0	0
Other expenses	0	0	0	0
Net Income (Loss)	198	937	(28)	1,218
Corporate/ Other | Other
Segment Reporting Information [Line Items]
Interest income	6	55	20	55
Interest expense	(9,478)	(10,828)	(18,864)	(22,561)
Net Interest Income	(9,472)	(10,773)	(18,844)	(22,506)
Investment fair value changes, net	(31)	0	(6)	(118)
Other	265	758	412	758
Realized gains, net	0	25,182	0	25,182
Total non-interest income (loss), net	234	25,940	406	25,822
General and administrative expenses	(18,183)	(13,818)	(35,687)	(24,726)
Loan acquisition costs			(4)	(7)
Other expenses	0	(134)	17	(446)
Net Income (Loss)	$ (27,421)	$ 1,215	$ (54,112)	$ (21,863)

Segment Information - Supplemen

Segment Information - Supplemental Information by Segment (Details) - USD ($) $ in Thousands		Jun. 30, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Real estate securities	[1]	$ 354,886	$ 344,125
Other investments	[1]	308,732	348,175
Intangible assets	[1]	49,119	56,865
Total Assets	[1]	11,996,391	10,355,066
Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		5,742,600	4,249,051
Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		4,408,889	4,136,353
Multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		485,157	492,221
Operating Segments | Residential Lending
Segment Reporting Information [Line Items]
Real estate securities		163,609	160,780
Other investments		8,721	8,815
Intangible assets		0	0
Total Assets		3,615,860	1,989,802
Operating Segments | Residential Lending | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		3,383,101	1,741,963
Operating Segments | Residential Lending | Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		0	0
Operating Segments | Residential Lending | Multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		0	0
Operating Segments | Business Purpose Lending
Segment Reporting Information [Line Items]
Real estate securities		0	0
Other investments		13,168	21,627
Intangible assets		49,119	56,865
Total Assets		4,576,139	4,323,040
Operating Segments | Business Purpose Lending | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		0	0
Operating Segments | Business Purpose Lending | Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		4,408,889	4,136,353
Operating Segments | Business Purpose Lending | Multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		0	0
Operating Segments | Third-Party Investments
Segment Reporting Information [Line Items]
Real estate securities		191,277	183,345
Other investments		267,851	317,282
Intangible assets		0	0
Total Assets		3,063,094	3,232,415
Operating Segments | Third-Party Investments | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		2,098,624	2,221,153
Operating Segments | Third-Party Investments | Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		0	0
Operating Segments | Third-Party Investments | Multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		485,157	492,221
Corporate/ Other
Segment Reporting Information [Line Items]
Real estate securities		0	0
Other investments		18,992	451
Intangible assets		0	0
Total Assets		741,298	809,809
Corporate/ Other | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		260,875	285,935
Corporate/ Other | Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		0	0
Corporate/ Other | Multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		$ 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 June 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $8,616,435 and $8,141,069, respectively. At June 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $7,562,367 and $7,148,414, respectively. See Note 4 for further discussion.